N-14

AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON SEPTEMBER 1, 2009.
SECURITIES ACT FILE NO. 333-                    

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM N-14

REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933

PRE-EFFECTIVE AMENDMENT NO. o

POST-EFFECTIVE AMENDMENT NO. o

TRANSAMERICA FUNDS

(Exact Name of Registrant as Specified in Charter)

570 Carillon Parkway, St. Petersburg, Florida 33716

(Address of Principal Executive Offices) (Zip Code)

(727) 299-1800

(Registrant’s Area Code and Telephone Number)

Dennis P. Gallagher, Esq.

P.O. Box 9012, Clearwater, Florida 33758-9771

(Name and Address of Agent for Service)

With Copies To:

Roger P. Joseph, Esq.
Lea Anne Copenhefer, Esq.
Bingham McCutchen LLP
One Federal Street, Boston, Massachusetts 02110

   Approximate Date of Proposed Public Offering: As soon as practicable after this Registration Statement is declared effective.

   It is proposed that this filing become effective October 1, 2009 pursuant to Rule 488.

Title of Securities Being Registered:

Class A shares, Class B shares, Class C shares, Class I shares and Class P shares

The Registrant has registered an indefinite amount of securities under the Securities Act of 1933, as amended, pursuant to Section 24(f) under the Investment Company Act of 1940, as amended; accordingly, no fee is payable herewith because of reliance upon Section 24(f).

COMBINED INFORMATION STATEMENT

OF

TRANSAMERICA INVESTORS, INC.
on behalf of its Series:

TRANSAMERICA PREMIER BALANCED FUND
TRANSAMERICA PREMIER DIVERSIFIED EQUITY FUND
TRANSAMERICA PREMIER INSTITUTIONAL DIVERSIFIED EQUITY FUND
TRANSAMERICA PREMIER EQUITY FUND
TRANSAMERICA PREMIER INSTITUTIONAL EQUITY FUND
TRANSAMERICA PREMIER FOCUS FUND
TRANSAMERICA PREMIER GROWTH OPPORTUNITIES FUND

AND

TRANSAMERICA FUNDS
on behalf of its Series:

TRANSAMERICA VALUE BALANCED
TRANSAMERICA SCIENCE & TECHNOLOGY
TRANSAMERICA TEMPLETON GLOBAL
TRANSAMERICA CONVERTIBLE SECURITIES

(each, a “Target Fund” and together, the “Target Funds”)

AND

PROSPECTUS

OF

TRANSAMERICA FUNDS
on behalf of its Series:

TRANSAMERICA BALANCED
TRANSAMERICA DIVERSIFIED EQUITY
TRANSAMERICA EQUITY
TRANSAMERICA LEGG MASON PARTNERS ALL CAP
TRANSAMERICA GROWTH OPPORTUNITIES
TRANSAMERICA FLEXIBLE INCOME

(each, a “Destination Fund” and together, the “Destination Funds”)

The address and telephone number of each Target Fund and each Destination Fund is:

570 Carillon Parkway
St. Petersburg, Florida 33716
(Toll free) 1-888-233-4339

TRANSAMERICA ASSET MANAGEMENT GROUP
Transamerica Funds
Transamerica Premier Funds
570 Carillon Parkway
St. Petersburg, Florida 33716

[                    ], 2009

Dear Shareholder:

     The Board of your Transamerica fund has approved the reorganization of your fund into another Transamerica fund. The reorganization is expected to occur on November 13, 2009. Upon completion of the reorganization, you will become a shareholder of the destination Transamerica fund, and you will receive shares of the destination fund equal in value to your shares of your current Transamerica fund. The reorganization is expected to be tax-free for federal income tax purposes and no sales load, contingent deferred sales charge, commission, redemption fee or other transactional fee will be charged as a result of the reorganization.

     The reorganization does not require shareholder approval, and you are not being asked to vote. We do, however, ask that you review the enclosed combined information statement/prospectus, which contains information about the destination fund, including fees and expenses.

     The reorganization of your fund is one of a number of reorganizations and other initiatives recently approved by the Boards of the Transamerica funds. The initiatives are designed to streamline the Transamerica fund complex, to promote operating efficiencies, and to result in a more cohesive and rational operating platform. Many of the reorganizations are described in the enclosed combined information statement/prospectus. Certain other initiatives require shareholder approval, and in those cases shareholders will receive proxy materials and will be asked to vote. It is anticipated that all of the initiatives will be accomplished by mid-2010.

     The Board of your fund has unanimously approved your fund’s reorganization and believes the reorganization is in the best interests of your fund and its shareholders.

     If you have any questions, please call [                    ] between 8 a.m. and 5 p.m., Eastern time, Monday through Friday. Thank you for your investment in the Transamerica funds.

Sincerely,

John K. Carter
Chairman of the Board
Transamerica Asset Management Group

The information in this Information Statement/Prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This Information Statement/ Prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

SUBJECT TO COMPLETION, DATED SEPTEMBER 1, 2009

COMBINED INFORMATION STATEMENT

OF

TRANSAMERICA INVESTORS, INC.

on behalf of its Series:

TRANSAMERICA PREMIER BALANCED FUND
TRANSAMERICA PREMIER DIVERSIFIED EQUITY FUND
TRANSAMERICA PREMIER INSTITUTIONAL DIVERSIFIED EQUITY FUND
TRANSAMERICA PREMIER EQUITY FUND
TRANSAMERICA PREMIER INSTITUTIONAL EQUITY FUND
TRANSAMERICA PREMIER FOCUS FUND
TRANSAMERICA PREMIER GROWTH OPPORTUNITIES FUND

AND

TRANSAMERICA FUNDS

on behalf of its Series:

TRANSAMERICA VALUE BALANCED
TRANSAMERICA SCIENCE & TECHNOLOGY
TRANSAMERICA TEMPLETON GLOBAL

TRANSAMERICA CONVERTIBLE SECURITIES

(each, a “Target Fund” and together, the “Target Funds”)

AND

PROSPECTUS

OF

TRANSAMERICA FUNDS

on behalf of its Series:

TRANSAMERICA BALANCED
TRANSAMERICA DIVERSIFIED EQUITY
TRANSAMERICA EQUITY
TRANSAMERICA LEGG MASON PARTNERS ALL CAP
TRANSAMERICA GROWTH OPPORTUNITIES
TRANSAMERICA FLEXIBLE INCOME

(each, a “Destination Fund” and together, the “Destination Funds”)

The address and telephone number of each Target Fund and each Destination Fund is:

570 Carillon Parkway
St. Petersburg, Florida 33716
(Toll free) 1-888-233-4339

     Shares of the Destination Funds have not been approved or disapproved by the Securities and Exchange Commission (the “SEC”). The SEC has not passed upon the accuracy or adequacy of this Information Statement/Prospectus. Any representation to the contrary is a criminal offense.

     An investment in any Target Fund or Destination Fund (each sometimes referred to herein as a “Fund”) is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

     This Information Statement/Prospectus sets forth information about the Destination Funds that an investor needs to know before investing. Please read this Information Statement/Prospectus carefully before investing and keep it for future reference.

INTRODUCTION

     This combined information statement and prospectus, dated [                    ], 2009 (the “Information Statement/Prospectus”), is being furnished in connection with the reorganizations (each, a “Reorganization,” and together the “Reorganizations”) of certain series of Transamerica Investors, Inc. (“Transamerica Premier Funds”), a Maryland corporation, and certain series of Transamerica Funds, a Delaware statutory trust (each, a “Target Fund,” and together the “Target Funds”) into certain series of Transamerica Funds (each, a “Destination Fund,” and together the “Destination Funds”). The Information Statement/Prospectus is being mailed to Target Fund shareholders on or about [                    ], 2009.

     The Board of Directors of Transamerica Premier Funds and the Board of Trustees of Transamerica Funds have approved the Reorganizations. A copy of the form of Agreement and Plan of Reorganization for each Reorganization is attached to this Information Statement/Prospectus as Exhibit A.

     THIS INFORMATION STATEMENT/PROSPECTUS IS FOR INFORMATIONAL PURPOSES ONLY, AND YOU DO NOT NEED TO DO ANYTHING IN RESPONSE TO RECEIVING IT. WE ARE NOT ASKING YOU FOR A PROXY OR WRITTEN CONSENT, AND YOU ARE REQUESTED NOT TO SEND US A PROXY OR WRITTEN CONSENT.

     The following table indicates (a) the Target Fund and corresponding Destination Fund involved in each Reorganization, (b) the corresponding Destination Fund shares that each Target Fund shareholder will receive, and (c) on what page of this Information Statement/Prospectus the discussion regarding each Reorganization begins. The Reorganizations are grouped and described together for convenience. The consummation of a particular Reorganization is not contingent on the consummation of any other Reorganization.

Reorganization	Target Fund & Shares	Destination Fund & Shares	Page
Group 1	Transamerica Premier Balanced Fund	Transamerica Balanced	1
	Investor Class	Class P
	Transamerica Value Balanced	Transamerica Balanced
	Class A	Class A
	Class B	Class B
	Class C	Class C

Reorganization	Target Fund & Shares	Destination Fund & Shares	Page
Group 2	Transamerica Premier Diversified Equity Fund	Transamerica Diversified Equity*	26
	Investor Class	Class P
	Transamerica Premier Institutional	Transamerica Diversified Equity*
	Diversified Equity Fund
	Institutional Class	Class I
	Transamerica Science & Technology	Transamerica Diversified Equity*
	Class A	Class A
	Class B	Class B
	Class C	Class C
	Class I	Class I
	Transamerica Templeton Global	Transamerica Diversified Equity*
	Class A	Class A
	Class B	Class B
	Class C	Class C
Group 3	Transamerica Premier Equity Fund	Transamerica Equity	60
	Investor Class	Class P
	Transamerica Premier Institutional Equity Fund	Transamerica Equity
	Institutional Class	Class I
Group 4	Transamerica Premier Focus Fund	Transamerica Legg Mason Partners	78
	Investor Class	All Cap**
		Class P
Group 5	Transamerica Premier Growth Opportunities Fund	Transamerica Growth Opportunities	90
	Investor Class	Class P
Group 6	Transamerica Convertible Securities	Transamerica Flexible Income	102
	Class A	Class A
	Class B	Class B
	Class C	Class C
	Class I	Class I

*	A newly-organized fund that will have substantially similar investment objectives and principal investment strategies and policies to those of Transamerica Premier Diversified Equity Fund.
**	The fund’s name, investment objective and principal investment strategies and policies, and sub-adviser are expected to change on or about November 6, 2009. It is expected that the fund will be renamed Transamerica Focus.

The date of this Information Statement/Prospectus is [_____], 2009.

     For more complete information about each Fund, please read the Fund’s Prospectus and Statement of Additional Information, as they may be amended and/or supplemented. Each Fund’s Prospectus and Statement of Additional Information, and other additional information about each Fund, has been filed with the SEC (http://www.sec.gov) and is available upon oral or written request and without charge. See “Where to Get More Information” below.

Where to Get More Information
Each Fund’s current prospectus and statement of additional information, including any applicable supplements thereto.	On file with the SEC (http://www.sec.gov) and available at no charge by calling our toll-free number: [1-800-851-9777] or by visiting our website at www.transamericafunds.com (select either “Transamerica Premier Funds” or “Transamerica Funds” for the Target Funds and “Transamerica Funds” for the Destination Funds).
Each Fund’s most recent annual and semi-annual reports to shareholders.	On file with the SEC (http://www.sec.gov) and available at no charge by calling our toll-free number: [1-800-851-9777] or by visiting our website at www.transamericafunds.com

Where to Get More Information
	(select either “Transamerica Premier Funds” or “Transamerica Funds” for the Target Funds and “Transamerica Funds” for the Destination Funds). See “Available Information.”
A statement of additional information for this Information Statement/Prospectus, dated [___], 2009 (the “SAI”). The SAI contains additional information about the Target Funds and the Destination Funds.	On file with the SEC (http://www.sec.gov) and available at no charge by calling our toll-free number: [1-800-851-9777] or by visiting our website at www.transamericafunds.com (select either “Transamerica Premier Funds” or “Transamerica Funds” for the Target Funds and “Transamerica Funds” for the Destination Funds). The SAI is incorporated by reference into this Information Statement/Prospectus.
To ask questions about this Information Statement/ Prospectus.	Call our toll-free telephone number: [1-800-851-9777].

     The current Prospectuses and Statement of Additional Information of each Target Fund, as supplemented, are incorporated by reference into this Information Statement/Prospectus (for each such Transamerica Fund, the Prospectuses dated March 1, 2009 and the Statement of Additional Information dated July 1, 2009 and for each such Transamerica Premier Fund, the Prospectuses and Statement of Additional Information dated May 1, 2009).

TABLE OF CONTENTS

	Page
SUMMARY		i
GROUP 1 REORGANIZATIONS —		1
Target Funds:
Transamerica Premier Balanced Fund		14
Transamerica Value Balanced		15
Destination Fund:
Transamerica Balanced		16
GROUP 2 REORGANIZATIONS —		26
Target Funds:
Transamerica Premier Diversified Equity Fund		41
Transamerica Premier Institutional Diversified Equity Fund		42
Transamerica Science & Technology		43
Transamerica Templeton Global		44
Destination Fund:
Transamerica Diversified Equity
GROUP 3 REORGANIZATIONS —		60
Target Funds:
Transamerica Premier Equity Fund		67
Transamerica Premier Institutional Equity Fund		69
Destination Fund:
Transamerica Equity		69
GROUP 4 REORGANIZATION —		78
Target Fund:
Transamerica Premier Focus Fund		78
Destination Fund:
Transamerica Focus		84
GROUP 5 REORGANIZATION —		90
Target Fund:
Transamerica Premier Growth Opportunities Fund		96
Destination Fund:
Transamerica Growth Opportunities		97
GROUP 6 REORGANIZATION —		102
Target Fund:
Transamerica Convertible Securities		111
Destination Fund:
Transamerica Flexible Income		112
OTHER IMPORTANT INFORMATION CONCERNING THE REORGANIZATIONS		118
PORTFOLIO SECURITIES		119
TERMS OF EACH AGREEMENT AND PLAN OF REORGANIZATION		120
TAX STATUS OF THE REORGANIZATIONS		121
FUNDAMENTAL INVESTMENT POLICIES OF THE FUNDS		123
BUYING, SELLING AND EXCHANGING OF FUND SHARES		125
ADDITIONAL INFORMATION ABOUT THE DESTINATION FUNDS		129
FINANCIAL HIGHLIGHTS		142
OWNERSHIP OF SHARES OF THE FUNDS		167
EXPERTS		171
AVAILABLE INFORMATION		172
EXHIBIT A — FORM OF AGREEMENT AND PLAN OF REORGANIZATION		A-1
EXHIBIT B — PORTFOLIO MANAGEMENT DISCUSSION		B-1

SUMMARY

This Summary section is qualified in its entirety by reference to the additional information contained elsewhere in this Information Statement/Prospectus and the Agreement and Plan of Reorganization relating to each Reorganization, a form of which is attached to this Information Statement/Prospectus as Exhibit A. Shareholders should read this entire Information Statement/Prospectus, including Exhibit A and Exhibit B, and the Funds’ prospectuses carefully for more complete information.

How will the Reorganizations Work?

• Each Target Fund will transfer all of its property and assets to the corresponding Destination Fund. In exchange, each Destination Fund will assume all of the liabilities of the corresponding Target Fund and issue shares, as described below.

• The consummation of a particular Reorganization is not contingent on the consummation of any other Reorganization. The Reorganizations are grouped and described together for convenience.

• For each Reorganization involving a Target Fund that is a Transamerica Premier Fund, the Destination Fund will issue a number of its Class I shares or Class P shares to the Target Fund on the closing date of the Reorganization (the “Closing Date”) having a net asset value equal to the aggregate net asset value of such Target Fund’s Institutional Class shares or Investor Class shares, respectively.

• For each Reorganization involving a Target Fund that is a Transamerica Fund, the Destination Fund will issue a number of its Class A shares, Class B shares, Class C shares and - as applicable - Class I shares on the Closing Date having a net asset value equal to the aggregate net asset value of such Target Fund’s Class A shares, Class B shares, Class C shares and - as applicable - Class I shares, respectively.

• Shares of the corresponding class of each Destination Fund will then be distributed on the Closing Date to the corresponding Target Fund’s shareholders in complete liquidation of the Target Fund in proportion to the relative net asset value of their holdings of the applicable class of shares of the Target Fund. Therefore, on the Closing Date, upon completion of the applicable Reorganization, each Target Fund shareholder will hold shares of the corresponding class of the corresponding Destination Fund with the same aggregate net asset value as their holdings of the applicable class of shares of the Target Fund immediately prior to the Reorganization. The net asset value attributable to a class of shares of a Target Fund will be determined using the Target Fund’s valuation policies and procedures and the net asset value attributable to a class of shares of a Destination Fund will be determined using the Destination Fund’s valuation policies and procedures. The portfolio assets of each Target Fund and corresponding Destination Fund are valued using the same valuation policies and procedures.

• Each Target Fund will then be terminated after the Closing Date.

• No sales load, contingent deferred sales charge, commission, redemption fee or other transactional fee will be charged as a result of the Reorganizations.

• Following the Reorganizations, Transamerica Asset Management, Inc. (“TAM”) will continue to act as investment adviser to each Destination Fund and Transamerica Investment Management, LLC (“TIM”) will serve as sub-adviser to each Destination Fund. In the case of Transamerica Legg Mason Partners All Cap — to be renamed Transamerica Focus — it is proposed that the sub-adviser be changed from ClearBridge Advisors, LLC to TIM; shareholder approval of this proposal is the subject of a separate proxy solicitation of shareholders of Transamerica Legg Mason Partners All Cap. In addition, following the Reorganization of Transamerica Templeton Global into Transamerica Diversified Equity, Templeton Investment Counsel, LLC will not sub-advise the combined Destination Fund.

i

• The exchange of Target Fund shares for Destination Fund shares in a Reorganization will not result in income, gain or loss being recognized for federal income tax purposes by an exchanging shareholder. The Reorganizations generally will not result in the recognition of gain or loss for federal income tax purposes by any Target Fund or Destination Fund.

Why did the Board Approve the Reorganizations?

     The Board of each Target Fund, including all of the directors/trustees who are not “interested” persons (as defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of the Funds, or TAM, the Funds’ investment adviser, or Transamerica Capital, Inc. (“TCI”), the Funds’ principal underwriter and distributor, (the “Independent Target Board Members”), after careful consideration, has determined that the Reorganization is in the best interests of that Target Fund and will not dilute the interests of the existing shareholders of that Target Fund. The Board has made this determination based on various factors which include those that are discussed below in the sections entitled “Reasons for the Proposed Reorganization” or “Reasons for the Proposed Reorganizations”.

     Similarly, the Board of Trustees of each Destination Fund, including all of the trustees who are not “interested” persons of the Funds, TAM or TCI (“the Independent Destination Trustees”), approved the Reorganizations. The Board also determined that the Reorganizations are in the best interests of the Destination Funds and that the interests of the Destination Funds’ shareholders will not be diluted as a result of the Reorganizations.

Who Bears the Expenses Associated with the Reorganizations?

     The costs of the Reorganizations will be shared equally by TAM, on the one hand, and, subject to certain limits, the Target Funds and Destination Funds (and ultimately the shareholders of the Target Funds and Destination Funds), on the other.

What are the Federal Income Tax Consequences of the Reorganizations?

     As a condition to the closing of each Reorganization, the applicable Target Fund and corresponding Destination Fund must receive an opinion of Bingham McCutchen LLP to the effect that the Reorganization will constitute a “reorganization” within the meaning of Section 368 of the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, it is expected that neither you nor in general your Target Fund will recognize gain or loss as a direct result of the Reorganization of your Target Fund, and that the aggregate tax basis of the Destination Fund shares that you receive in the Reorganization will equal the aggregate tax basis of the Target Fund shares that you surrender in the Reorganization. However, each Target Fund will declare and pay a distribution of its realized net capital gains, if any, its undistributed investment company taxable income (computed without regard to the dividends-paid deduction), if any, and its net tax-exempt income, if any, for the taxable year ending (or as though it were ending) on the Closing Date, to its shareholders shortly before the applicable Reorganization. If you hold shares in a Target Fund when it makes such a distribution, the distribution may affect the amount, timing and character of taxable income that you realize in respect of your Target Fund shares. For more information, see “Tax Status of the Reorganizations” on page 121 of this Information Statement/Prospectus.

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GROUP 1 REORGANIZATIONS

TRANSAMERICA PREMIER BALANCED FUND
TRANSAMERICA VALUE BALANCED
(each, a “Target Fund” and together, the “Target Funds”)

AND

TRANSAMERICA BALANCED
(the “Destination Fund”)

SUMMARY

     The following is a summary of more complete information appearing later in this Information Statement/Prospectus or incorporated herein. You should read carefully the entire Information Statement/Prospectus, including the form of Agreement and Plan of Reorganization attached as Exhibit A and the Portfolio Management Discussion attached as Exhibit B, because they contain details that are not in the summary.

     In each Reorganization, the Target Fund will be reorganized into the Destination Fund, with that Target Fund receiving shares of the corresponding class of the Destination Fund as shown in the following table:

Target Fund & Shares	Destination Fund & Shares
Transamerica Premier Balanced Fund	Transamerica Balanced
Investor Class	Class P
Transamerica Value Balanced	Transamerica Balanced
Class A	Class A
Class B	Class B
Class C	Class C

The consummation of one Reorganization is not contingent on the consummation of the other Reorganization.

     The Target Funds and the Destination Fund are advised by Transamerica Asset Management, Inc. (“TAM”) and have similar investment objectives, principal investment strategies and policies and related risks. The tables below provide a comparison of certain features of the Funds. In the tables below, if a row extends across the entire table, the information applies to both the Destination Fund and the applicable Target Fund.

Comparison of Transamerica Premier Balanced Fund to Transamerica Balanced

	Transamerica Premier Balanced Fund	Transamerica Balanced
Investment Objective	The Fund seeks to achieve long-term capital growth and current income with a secondary objective of capital preservation, by balancing investments among stocks, bonds, and cash or cash equivalents.	The objective of the Fund is to seek long-term capital growth and current income with a secondary objective of capital preservation, by balancing investments among stocks, bonds and cash or cash equivalents.
Principal Investment Strategies and Policies	The Fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve the Fund’s objective by investing primarily in common stocks and bonds with maturities of less than 30 years. TIM may also invest in cash or cash equivalents such as money market funds and other short-term investment instruments. This requires the managers of each portion of the Fund to be flexible in managing the Fund’s assets. At times, TIM may shift portions held in bonds and stocks according to business and investment conditions. However, at all times, the Fund will hold at least	TIM seeks to achieve the Fund’s objective by investing primarily in common stocks and high quality bonds with maturities of less than 30 years. TIM may also invest in cash or cash equivalents such as money market funds and other short-term investment instruments. This requires the managers of each portion of the Fund to be flexible in managing the Fund’s assets. At times, TIM may shift portions held in bonds and stocks according to business and investment conditions. However, at all times the Fund will hold at least 25% of its assets in non-convertible fixed-income securities.

1

Transamerica Premier Balanced Fund	Transamerica Balanced
25% of its assets in non-convertible fixed-income securities. To achieve its goal, TIM invests in a diversified portfolio of common stocks, bonds, money market instruments and other short-term debt securities issued by companies of all sizes. TIM’s equity and fixed-income management teams work together to build a portfolio of growth stocks combined with bonds that TIM considers to be of good credit quality purchased at favorable prices. TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual issuers. The Fund is constructed one security at a time. Each issuer passes through a research process and stands on its own merits as a viable investment in TIM’s opinion. Equity Investments. TIM uses an intrinsic value discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long-term, above-average rate of return. In projecting cash flows and determining earning potential and valuation, TIM uses multiple factors such as:	To achieve its goal, TIM invests in a diversified portfolio of common stocks, bonds, money market instruments and other short-term debt securities issued by companies of all sizes. TIM’s equity and fixed-income management teams work together to build a portfolio of growth stocks combined with bonds that TIM considers to be of good credit quality purchased at favorable prices. TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual issuers. The Fund is constructed one security at a time. Each issuer passes through a research process and stands on its own merits as a viable investment in TIM’s opinion. Equity Investments. TIM uses an intrinsic value discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long term, above-average rate of return. In projecting free cash flows and determining earnings potential and valuation, TIM uses multiple factors such as:
•     the quality of the management team	•     the quality of the management team
•     the company’s ability to earn returns on capital in excess of the cost of capital	•     the company’s ability to earn returns on capital in excess of the cost of capital
•     competitive barriers to entry	•     competitive barriers to entry
•     the financial condition of the company.	•     the financial condition of the company.
TIM takes a long-term approach to investing and views each investment in a company as owning a piece of the business. Fixed-Income Investments. TIM’s bond management team seeks out bonds with credit strength of the quality that it believes could warrant higher ratings, which, in turn, could lead to higher valuations. To identify these bonds, the bond research team performs in-depth income and credit analysis on companies issuing bonds under consideration for the Fund. It also compiles bond price information from many different bond markets and evaluates how these bonds can be expected to perform with respect to recent economic developments. TIM analyzes this market information daily, negotiating each trade and buying bonds at the best available prices. The Fund may invest in mortgage-backed securities and lower-rated bonds. The Fund may also invest in derivative securities, including futures, options and options on futures, swaps and foreign securities. The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market	TIM takes a long-term approach to investing and views each investment in a company as owning a piece of the business. Fixed-Income Investments. TIM’s bond management team seeks out bonds with credit strength of the quality that it believes could warrant higher ratings, which, in turn, could lead to higher valuations. To identify these bonds, the bond research team performs in-depth income and credit analysis on companies issuing bonds under consideration for the Fund. It also compiles bond price information from many different bond markets and evaluates how these bonds can be expected to perform with respect to recent economic developments. TIM analyzes this market information daily, negotiating each trade and buying bonds at what TIM considers to be the best available prices. The Fund may invest in mortgage-backed securities and lower-rated bonds. The Fund may also invest in derivative securities, including futures, options and options on futures, swaps and foreign securities. The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this

2

	Transamerica Premier Balanced Fund	Transamerica Balanced
	instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.	only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.
Investment Adviser	TAM
Sub-Adviser	TIM
Portfolio Managers	Gary U. Rollé, CFA Portfolio Manager (lead-equity) Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.
	Greg D. Haendel, CFA Portfolio Manager (lead-fixed income) Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

3

Transamerica Premier Balanced Fund	Transamerica Balanced
Derek S. Brown, CFA Portfolio Manager (co-fixed income) Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.
Edward S. Han Portfolio Manager (co-equity) Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

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Transamerica Premier Balanced Fund	Transamerica Balanced
John J. Huber, CFA Portfolio Manager (co-equity) John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience.
Peter O. Lopez Portfolio Manager (co-fixed income) Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience.
Erik U. Rollé Portfolio Manager (co-equity) Erik U. Rollé is a Securities Analyst and Co-Portfolio Manager at TIM. He co-manages sub-advised funds and institutional separate accounts in the Growth Equity discipline. Prior to joining TIM in 2005, Mr. Rollé worked as a Research Associate at Bradford & Marzec where his primary responsibilities were within trading and credit research. He received a B.S. in Finance and a B.S. in Journalism from the University of Colorado at Boulder. Mr. Rollé has 6 years of investment experience.
Brian W. Westhoff, CFA Portfolio Manager (co-fixed income) Brian W. Westhoff is a Portfolio Manager at TIM. Prior to joining TIM in 2003, Mr. Westhoff worked as an Equity Research Intern with Credit Suisse Asset Management, as a Fixed Income Investment Analyst at St. Paul Companies, and as an Argentine/Oil and Gas Equity Research Intern with Merrill Lynch in Argentina. He holds an M.B.A.

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	Transamerica Premier Balanced Fund	Transamerica Balanced
	from Thunderbird, the Garvin Graduate School of International Management, and received a B.S. in Business Administration from Drake University. Mr. Westhoff has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.
	The Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.
Business	A diversified open-end investment management company organized as a series of Transamerica Premier Funds, a Maryland corporation.	A diversified open-end investment management company organized as a series of Transamerica Funds, a Delaware statutory trust.
Net Assets (as of June 30, 2009)	$283,228,011	$91,211,291

Classes of Shares, Fees and Expenses

	Transamerica Premier Balanced Fund	Transamerica Balanced
Sales Charges and Fees	Investor Class shares are offered without an initial sales charge. Investor Class shares are not subject to a contingent deferred sales charge. Investor Class shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.25% of the average daily net assets of the Fund. The fee accrues daily and is based on an annual percentage of the daily average net assets.	Class P shares are offered without an initial sales charge. Class P shares are available only to former investors in Investor Class shares of Transamerica Premier Funds. Class P shares are not subject to a contingent deferred sales charge. Class P shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.25% of the average daily net assets of the Fund. The fee accrues daily and is based on an annual percentage of the daily average net assets.
Advisory Fees	TAM is entitled to receive an advisory fee based on an annual rate of the Fund’s average daily net assets:	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets):
	•     0.75% for the first $1 billion;	•     0.75% for the first $500 million of assets;
	•     0.72% of the next $1 billion; and	•     0.65% for assets over $500 million and up to $1 billion; and
	•     0.70% of assets in excess of $2 billion.	•     0.60% for assets over $1 billion.*
	For the fiscal year ended December 31, 2008, the Fund paid advisory fees of 0.58% of the Fund’s average daily net assets.	For the fiscal year ended October 31, 2008, the Fund paid advisory fees of 0.80% of the Fund’s average daily net assets.
Fee Waiver and Expense Limitations	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.10%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of	TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.10% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.

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	Transamerica Premier Balanced Fund	Transamerica Balanced
	such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.10% (other than interest, taxes, brokerage commissions and extraordinary expenses).
Gross and Net Expenses	For a comparison of the gross and net expenses of the Funds, please see the class fee tables in the “The Funds’ Fees and Expenses” section.

* The fee structure shown is the revised fee structure that will be implemented at the time of the Reorganization. The current fee structure is 0.80% for the first $250 million of assets, 0.75% for assets over $250 million and up to $500 million, 0.70% for assets over $500 million and up to $1.5 billion, and 0.625% for assets over $1.5 billion.

Comparison of Transamerica Valued Balanced to Transamerica Balanced

	Transamerica Value Balanced	Transamerica Balanced
Investment Objective	The objective of the Fund is preservation of capital and competitive investment returns.	The objective of the Fund is to seek long-term capital growth and current income with a secondary objective of capital preservation, by balancing investments among stocks, bonds and cash or cash equivalents.
Principal Investment Strategies and Policies	TIM seeks to achieve the Fund’s objective by investing Fund assets principally in: •     domestic equities whose market capitalization generally exceeds $3 billion •     debt obligations of U.S. and foreign issuers, some of which will be convertible into common stocks •     U.S. Treasury bonds, notes and bills •     money market instruments •     mortgage-backed and asset-backed securities To achieve its goal the Fund invests in a diversified portfolio of common stocks, bonds, money market instruments and other short-term debt securities issued by companies of all sizes. TIM’s equity and fixed-income management teams work together to build a portfolio of growth stocks combined with bonds that TIM considers to be of good credit quality purchased at favorable prices. TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual issuers. The Fund is constructed one security at a time. Each issuer passes through a research process and stands on its own merits as a viable investment in TIM’s opinion. Although the Fund will invest primarily in publicly traded U.S. securities, it will be able to invest up to 10% of its total assets in foreign securities, including securities of issuers in emerging countries and securities quoted in foreign currencies.	TIM seeks to achieve the Fund’s objective by investing primarily in common stocks and high quality bonds with maturities of less than 30 years. TIM may also invest in cash or cash equivalents such as money market funds and other short-term investment instruments. This requires the managers of each portion of the Fund to be flexible in managing the Fund’s assets. At times, TIM may shift portions held in bonds and stocks according to business and investment conditions. However, at all times the Fund will hold at least 25% of its assets in non-convertible fixed-income securities. To achieve its goal, TIM invests in a diversified portfolio of common stocks, bonds, money market instruments and other short-term debt securities issued by companies of all sizes. TIM’s equity and fixed-income management teams work together to build a portfolio of growth stocks combined with bonds that TIM considers to be of good credit quality purchased at favorable prices. TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual issuers. The Fund is constructed one security at a time. Each issuer passes through a research process and stands on its own merits as a viable investment in TIM’s opinion. Equity Investments. TIM uses an intrinsic value discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long term, above-average rate of return. In projecting free cash flows

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Transamerica Value Balanced	Transamerica Balanced
TIM will seek to enhance returns in rising stock markets by increasing its allocation to equity, then seek to protect itself in falling stock markets by reducing equity exposure and shifting into fixed-income investments, as well as into money market funds. However at all times the Fund will hold at least 25% of its assets in non-convertible fixed-income securities. Equity Investments. TIM uses an intrinsic value discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long term, above-average rate of return. In projecting free cash flows and determining earnings potential and valuation, TIM uses multiple factors such as: •     the quality of the management team •     the company’s ability to earn returns on capital in excess of the cost of capital •     competitive barriers to entry •     the financial condition of the company. TIM takes a long-term approach to investing and views each investment in a company as owning a piece of the business. Fixed-Income Investments. TIM’s bond management team seeks out bonds with credit strength of the quality that it believes could warrant higher ratings, which, in turn, could lead to higher valuations. To identify these bonds, the bond research team performs in-depth income and credit analysis on companies issuing bonds under consideration for the Fund. It also compiles bond price information from many different bond markets and evaluates how these bonds can be expected to perform with respect to recent economic developments. TIM analyzes this market information daily, negotiating each trade and buying bonds at what TIM considers to be the best available prices. The Fund may invest in mortgage-backed securities and lower-rated bonds. The Fund may also invest in derivative securities, including futures, options and options on futures, swaps and foreign securities. The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund	and determining earnings potential and valuation, TIM uses multiple factors such as: •     the quality of the management team •     the company’s ability to earn returns on capital in excess of the cost of capital •     competitive barriers to entry •     the financial condition of the company.
	TIM takes a long-term approach to investing and views each investment in a company as owning a piece of the business. Fixed-Income Investments. TIM’s bond management team seeks out bonds with credit strength of the quality that it believes could warrant higher ratings, which, in turn, could lead to higher valuations. To identify these bonds, the bond research team performs in-depth income and credit analysis on companies issuing bonds under consideration for the Fund. It also compiles bond price information from many different bond markets and evaluates how these bonds can be expected to perform with respect to recent economic developments. TIM analyzes this market information daily, negotiating each trade and buying bonds at what TIM considers to be the best available prices. The Fund may invest in mortgage-backed securities and lower-rated bonds. The Fund may also invest in derivative securities, including futures, options and options on futures, swaps and foreign securities. The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

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	Transamerica Value Balanced	Transamerica Balanced
	has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.
Investment Adviser	TAM
Sub-Adviser	TIM
Portfolio Managers	Greg D. Haendel, CFA Derek S. Brown, CFA Brian W. Westhoff, CFA The biographical information for these portfolio managers is provided above. Scott L. Dinsdale, CFA Portfolio Manager (co-equity) Scott L. Dinsdale is a Senior Securities Analyst at TIM. He re-joined TIM in 2005 after previously serving as a Fixed Income Analyst from 1999-2000. Mr. Dinsdale was a Portfolio Manager and Analyst in the High Yield and Convertible Securities group at Pacific Life Insurance Company and previously worked as a Director at Standard and Poor’s Ratings Group. He holds an M.B.A. in Finance and International Business from the Stern School of Business at New York University and received a B.A. in Business Administration from San Diego State University. Mr. Dinsdale has earned the right to use the Chartered Financial Analyst designation and has 20 years of investment experience.	Gary U. Rollé, CFA Greg D. Haendel, CFA Derek S. Brown, CFA Edward S. Han John J. Huber, CFA Peter O. Lopez Erik U. Rollé Brian W. Westhoff, CFA The biographical information for these portfolio managers is provided above. The Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.
	Kirk R. Feldhus Portfolio Manager (co-equity) Kirk R. Feldhus is a Securities Analyst at TIM. He co-manages institutional and retail portfolios for the diversified equity and all-cap value strategies. He joined TIM in 2005 when the firm acquired Westcap Investors LLC. Prior to Westcap, Mr. Feldhus served as vice president at Crystal Cove Capital. He has worked as a research associate at Bank of America Securities and as a management consultant at Ernst & Young. He holds an MBA from the Marshall School at the University of Southern California and earned a B.S. from Colorado State University. Mr. Feldhus has 9 years of investment experience. The Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.
Business	A diversified open-end investment management company organized as a series of Transamerica Funds, a Delaware statutory trust.
Net Assets (as of June 30, 2009)	$26,032,389	$91,211,291

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Classes of Shares, Fees and Expenses

	Transamerica Value Balanced	Transamerica Balanced
Sales Charges and Fees	Class A shares are subject to a maximum initial sales charge of 5.50%. Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge for 24 months after purchase.
	Class B shares are subject to a maximum deferred sales charge of 5.00%, which declines during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later). Class C shares are subject to maximum deferred sales charge of 1.00% if redeemed during the first 12 months of purchase.
	Class A shares, Class B shares and Class C shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.35% for Class A shares, 1.00% for Class B shares and 1.00% Class C shares.
Advisory Fees	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets):	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets):
	•   0.75% for the first $500 million of assets;	•   0.75% for the first $500 million of assets;
	•   0.65% for assets over $500 million and up to $1 billion; and	•   0.65% for assets over $500 million and up to $1 billion; and
	•   0.60% for assets over $1 billion.	•   0.60% for assets over $1 billion.*
	For the fiscal year ended October 31, 2008, the Fund paid advisory fees of 0.75% of the Fund’s average daily net assets.	For the fiscal year ended October 31, 2008, the Fund paid advisory fees of 0.80% of the Fund’s average daily net assets.
Fee Waiver and Expense Limitations	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses. The Fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.	Contractual arrangements have been made with TAM, through March 1, 2011, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.45%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.45%, excluding 12b-1 fees and extraordinary expenses.
Gross and Net Expenses	For a comparison of the gross and net expenses of the Funds, please see the class fee tables in the “The Funds’ Fees and Expenses” section.

* The fee structure shown is the revised fee structure that will be implemented at the time of the Reorganization. The current fee structure is 0.80% for the first $250 million of assets, 0.75% for assets over $250 million and up to $500 million, 0.70% for assets over $500 million and up to $1.5 billion, and 0.625% for assets over $1.5 billion.

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Comparison of Principal Risks of Investing in the Funds

     Because the Funds have similar investment objectives and principal investment strategies and policies, they are subject to similar principal risks. Risk is inherent in all investing. The value of your investment in a Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in a Fund or your investment may not perform as well as other similar investments.

     Each Fund is subject to the following principal risks:

• Market. The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

• Stocks. Stocks may be volatile — their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down.

• Fixed-Income Securities. The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

- market risk: fluctuations in market value

- interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

- prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

- extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

- default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s Sub-Adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the

11

holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

• Derivatives. The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Sub-Adviser may not make use of derivatives for a variety of reasons.

• Mortgage-Related Securities. Mortgage-related securities in which the Fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage- related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the Fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the Fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The Fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the Fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

• Foreign Securities. Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

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- different accounting and reporting practices

- less information available to the public

- less (or different) regulation of securities markets

- more complex business negotiations

- less liquidity

- more fluctuations in prices

- delays in settling foreign securities transactions

- higher costs for holding shares (custodial fees)

- higher transaction costs

- vulnerability to seizure and taxes

- political or financial instability and small markets

- different market trading days

• Currency. When the Fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund.

• High-Yield Debt Securities. High-yield debt securities, or junk bonds, are securities which are rated below “investment grade” or, if unrated, are considered by the Sub-Adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the Fund’s Sub-Adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

• Small- or Medium-Sized Companies. Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

     Transamerica Premier Balanced Fund and Transamerica Balanced are subject to the following additional principal risk:

• Growth Stocks. Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

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     Transamerica Value Balanced is subject to the following additional principal risk:

• Emerging Markets. Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

The Funds’ Past Performance

     The bar charts and tables below provide some indication of the risks of investing in each Fund by showing you how the performance of the Investor Class of Transamerica Premier Balanced Fund, Class A of Transamerica Value Balanced, and Class A of Transamerica Balanced has varied from year to year for 10 years or since inception, as applicable, and how the average total returns of each Fund’s applicable class of shares for different periods compare to the returns of one or more broad measures of market performance. Absent any applicable limitation of or cap on the Funds’ expenses, performance would have been lower. Transamerica Value Balanced Fund’s Class B and Class C shares and the Class B, Class C and Class P shares of Transamerica Balanced will have different performance from that shown in the bar charts below because they have different expenses than the share classes shown. No performance information is presented for the Class P shares of Transamerica Balanced because Class P shares are newly offered. A Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.

     Each Fund makes updated information available (available at no charge by calling the Funds’ toll-free number, [1-800-851-9777], or by visiting the Funds’ website at www.transamericafunds.com (select either “Transamerica Premier Funds” or “Transamerica Funds” for the Target Funds and “Transamerica Funds” for the Destination Fund)).

Transamerica Premier Balanced Fund Annual Returns — Investor Class Shares
(per year ended 12/31)

     The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	14.63	%	Quarter ended:	12/31/1999
Lowest:	(17.27	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 8.29%.

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Transamerica Premier Balanced Fund Average Annual Total Returns
(for periods ended 12/31/2008) ⁽¹⁾

							10 Years or
Transamerica Premier Balanced Fund	1 Year			5 Years			Life of Fund
Investor Class — Return before Taxes		(33.27	)%		(0.51	)%		2.69	%
Investor Class — Return after taxes on distributions(2)		(34.01	)%		(1.03	)%		1.78	%
Investor Class — Return after taxes on distributions and sale of fund shares(2)		(20.95	)%		(0.44	)%		2.01	%
S&P 500 Index(3)		(37.00	)%		(2.19	)%		(1.38	)%
Barclays Capital U.S. Aggregate Index (“BCUSA Index”)(4)		5.24	%		4.65	%		5.63	%
Barclays U.S. Government/Credit Bond Index(5)		5.70	%		4.64	%		5.64	%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.
(2)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(3)	The S&P 500 Index consists of 500 widely held, publicly traded common stocks. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.
(4)	The BCUSA Index (formerly, Lehman Brothers U.S. Aggregate Index) is a broad-based market index that covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.
(5)	The Barclays Capital U.S. Government/Credit Bond Index (formerly, Lehman Brothers U.S. Government/Credit Bond Index), is a broad-based, unmanaged index of all government and corporate bonds that are investment grade with at least one year to maturity. This index served as the Fund’s secondary benchmark prior to January 1, 2009. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Transamerica Value Balanced Annual Returns — Class A
(per year ended 12/31)

     The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	12.90	%	Quarter ended:	6/30/2003
Lowest:	(16.08	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 4.42%.

15

Transamerica Value Balanced Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

							10 Years
							or Life of
Transamerica Value Balanced	1 Year			5 Years			Fund(2)
Class A Return before taxes		(35.32	)%		(2.21	)%		0.05	%
Return after taxes on distributions(3)		(35.89	)%		(3.06	)%		(0.97	)%
Return after taxes on distributions and sale of fund shares(3)		(22.82	)%		(1.77	)%		(0.24	)%
Class B (Return before Taxes Only)		(35.43	)%		(1.92	)%		0.07	%
Class C (Return before Taxes Only)		(32.68	)%		(1.71	)%		2.08	%
Russell 1000® Value Index(4)(5)		(36.85	)%		(0.79	)%		1.36	%
BCUSA Index(5)		5.24	%		4.65	%		5.63	%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account. After-tax returns are presented for only one class and returns for other classes will vary.
(2)	Class A and Class B commenced operations on October 1, 1995. Class C commenced operations on November 11, 2002.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(4)	The Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
(5)	The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Transamerica Balanced Annual Returns — Class A
(per year ended 12/31)

     The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	14.82	%	Quarter ended:	12/31/1999
Lowest:	(16.46	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 8.80%.

16

Transamerica Balanced Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

							10 Years or
							Life of
Transamerica Balanced	1 Year			5 Years			Fund(2)
Class A
Return Before Taxes		(36.41	)%		(1.95	)%		0.66	%
Return after taxes on distributions(3)		(37.30	)%		(2.43	)%		0.07	%
Return after taxes on distributions and sale of fund shares(3)		(22.78	)%		(1.69	)%		0.35	%
Class B (Return before Taxes Only)		(36.29	)%		(1.59	)%		0.72	%
Class C (Return before Taxes Only)		(33.73	)%		(1.39	)%		0.62	%
S&P 500 Index(4)		(37.00	)%		(2.19	)%		(1.38	)%
BCUSA Index(4)		5.24	%		4.65	%		5.63	%
Barclays Capital U.S. Government/Credit Bond Index(4)(5)		5.70	%		4.64	%		5.64	%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account. After-tax returns are presented for only one class and returns for other classes will vary.
(2)	Class A commenced operations on December 2, 1994. Class B commenced operations on October 1, 1995. Class C commenced operations on November 11, 2002.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(4)	The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.
(5)	This index served as one of the fund’s benchmarks prior to January 1, 2009, at which time it was replaced with the BCUSA Index. This benchmark index change was made to more accurately reflect the principal strategies and policies of the fund.

Note: Prior to May 28, 2004, a different sub-adviser managed Transamerica Balanced, and it had a different investment objective and used different investment strategies. The performance set forth prior to that date is attributable to the previous sub-adviser.

     The portfolio management discussion of each Fund’s performance for its last fiscal year is attached as Exhibit B.

The Funds’ Fees and Expenses

     Shareholders of the Target Funds and the Destination Fund pay various fees and expenses, either directly or indirectly. The tables below show the fees and expenses that you would pay if you were to buy and hold shares of each Fund. The fees and expenses in the tables appearing below are based on the expenses of the Funds for the twelve-month period ended April 30, 2009. The tables also show the pro forma expenses of the combined Destination Fund after giving effect both to each Reorganization and to all Group 1 Reorganizations based on pro forma net assets as of April 30, 2009. Pro forma numbers are estimated in good faith and are hypothetical. Actual expenses may vary significantly.

Assuming only the Transamerica Premier Balanced Fund Reorganization:

	Transamerica				Combined
	Premier				Transamerica
	Balanced		Transamerica		Balanced
	Fund		Balanced		(Pro Forma)
	Investor Class		Class P(a)		Class P
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A		N/A		N/A
Maximum deferred sales charge (load) (as a % of offering price or redemption proceeds, whichever is lower)		N/A		N/A		N/A

17

	Transamerica					Combined
	Premier					Transamerica
	Balanced			Transamerica		Balanced
	Fund			Balanced		(Pro Forma)
	Investor Class			Class P		Class P
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)
Management Fees		0.71	%		N/A		0.75	%
Rule 12b-1 Fees		0.25	%		N/A		0.25	%
Other Expenses		0.30	%		N/A		0.30	%
Total		1.26	%		N/A		1.30	%
Expense Reduction		0.16	%(c)		N/A		0.20	%(d)
Net Operating Expenses		1.10	%		N/A		1.10	%

(a)	Because Class P of Transamerica Balanced is a new share class, no fee and expense information is available for the twelve-month period ended April 30, 2009.
(b)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(c)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.10%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.10% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(d)	TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the combined Fund’s net expenses to 1.10% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.

Assuming only the Transamerica Value Balanced Reorganization:

							Combined									Combined
							Transamerica			Transamerica						Transamerica
	Transamerica			Transamerica			Balanced			Value			Transamerica			Balanced
	Value Balanced			Balanced			(Pro Forma)			Balanced			Balanced			(Pro Forma)
	Class A			Class A			Class A			Class B			Class B			Class B
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%		5.50	%		5.50	%		N/A			N/A			N/A
Maximum deferred sales charge (load) (as a % of offering price or redemption proceeds, whichever is lower)		N/A	(a)		N/A	(a)		N/A	(a)		5.00	%(b)		5.00	%(b)		5.00	%(b)
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(c)
Management Fees		0.75	%		0.80	%		0.75	%		0.75	%		0.80	%		0.75	%
Rule 12b-1 Fees		0.35	%		0.35	%		0.35	%		1.00	%		1.00	%		1.00	%
Other Expenses		0.57	%		0.45	%		0.46	%		0.67	%		0.45	%		0.48	%
Total		1.67	%		1.60	%		1.56	%		2.42	%		2.25	%		2.23	%
Expense Reduction		0.12	%(d)		0.00	%(e)		0.00	(f)		0.22	%(d)		0.00	%(e)		0.00	%(f)
Net Operating Expenses		1.55	%		1.60	%		1.56	%		2.20	%		2.25	%		2.23	%

							Combined
	Transamerica						Transamerica
	Value			Transamerica			Balanced
	Balanced			Balanced			(Pro Forma)
	Class C			Class C			Class C
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)	None			None			None
Maximum deferred sales charge (load) (as a % of offering price or redemption proceeds, whichever is lower)		1.00	%(g)		1.00	%(g)		1.00	%(g)
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(c)
Management Fees		0.75	%		0.80	%		0.75	%
Rule 12b-1 Fees		1.00	%		1.00	%		1.00	%
Other Expenses		0.47	%		0.35	%		0.35	%
Total		2.22	%		2.15	%		2.10	%
Expense Reduction		0.02	%(d)		0.00	%(e)		0.00	%(f)
Net Operating Expenses		2.20	%		2.15	%		2.10	%

(a)	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
(b)	Purchases of Class B shares are subject to declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
(c)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(d)	Contractual arrangements have been made TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses. The Fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.
(e)	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the Fund’s total expenses exceed 1.45%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.45%, excluding 12b-1 fees and extraordinary expenses.
(f)	Contractual arrangements have been made with TAM, through March 1, 2011, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.45%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.45%, excluding 12b-1 fees and extraordinary expenses.
(g)	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.

18

Assuming both Group 1 Reorganizations:

						Combined									Combined
	Transamerica					Transamerica			Transamerica						Transamerica
	Premier			Transamerica		Balanced			Value			Transamerica			Balanced
	Balanced Fund			Balanced		(Pro Forma)			Balanced			Balanced			(Pro Forma)
	Investor Class			Class P(a)		Class P			Class A			Class A			Class A
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A		N/A			5.50	%		5.50	%		5.50	%
Maximum deferred sales charge (load) (as a % of offering price or redemption proceeds, whichever is lower)		N/A			N/A		N/A			N/A	(b)		N/A	(b)		N/A	(b)
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(c)
Management Fees		0.71	%		N/A		0.75	%		0.75	%		0.80	%		0.75	%
Rule 12b-1 Fees		0.25	%		N/A		0.25	%		0.35	%		0.35	%		0.35	%
Other Expenses		0.30	%		N/A		0.30	%		0.57	%		0.45	%		0.43	%
Total		1.26	%		N/A		1.30	%		1.67	%		1.60	%		1.53	%
Expense Reduction		0.16	%(d)		N/A		0.20	%(e)		0.12	%(f)		0.00	%(g)		0.00	%(h)
Net Operating Expenses		1.10	%		N/A		1.10	%		1.55	%		1.60	%		1.53	%

							Combined									Combined
	Transamerica						Transamerica			Transamerica						Transamerica
	Value			Transamerica			Balanced			Value			Transamerica			Balanced
	Balanced			Balanced			(Pro Forma)			Balanced			Balanced			(Pro Forma)
	Class B			Class B			Class B			Class C			Class C			Class C
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A			N/A		None			None			None
Maximum deferred sales charge (load) (as a % of offering price or redemption proceeds, whichever is lower)		5.00	%(i)		5.00	%(i)		5.00	%(i)		1.00	%(j)		1.00	%(j)		1.00	%(j)
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(c)
Management Fees		0.75	%		0.80	%		0.75	%		0.75	%		0.80	%		0.75	%
Rule 12b-1 Fees		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Other Expenses		0.67	%		0.45	%		0.45	%		0.47	%		0.35	%		0.32	%
Total		2.42	%		2.25	%		2.20	%		2.22	%		2.15	%		2.07	%
Expense Reduction		0.22	%(f)		0.00	%(g)		0.00	%(h)		0.02	%(f)		0.00	%(g)		0.00	%(h)
Net Operating Expenses		2.20	%		2.25	%		2.20	%		2.20	%		2.15	%		2.07	%

(a)	Because Class P of Transamerica Balanced is a new share class, no fee and expense information is available for the twelve-month period ended April 30, 2009.
(b)	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
(c)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(d)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.10%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.10% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(e)	TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the combined Fund’s net expenses to 1.10% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.
(f)	Contractual arrangements have been made TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses. The Fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.
(g)	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the Fund’s total expenses exceed 1.45%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.45%, excluding 12b-1 fees and extraordinary expenses.
(h)	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.45%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.45%, excluding 12b-1 fees and extraordinary expenses.
(i)	Purchases of Class B shares are subject to declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
(j)	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.

     The hypothetical examples below help you compare the cost of investing in each Fund. Each example assumes that:

• you invest $10,000 in each Fund;

• you reinvest all dividends and distributions without a sales charge;

• your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance); and

• each Fund’s operating expenses remain the same.

     Each example also assumes no fees for IRA accounts, if applicable. Costs are the same whether you redeem at the end of any period or not, except where indicated for Class B and Class C shares. Pro forma expenses are included assuming a Reorganization of the Funds. The examples are for comparison purposes only and do not represent the Funds’ actual expenses or returns, either past or future. Because actual return and expenses will be different, the examples are for comparison only.

19

Assuming only the Transamerica Premier Balanced Fund Reorganization:

If the shares are redeemed at the end of each period:

			Combined
	Transamerica		Transamerica
Number of years	Premier Balanced		Balanced
you own your shares	Fund		(Pro Forma)
Investor Class / Class P
Year 1	$	112	$	112
Year 3	$	384	$	392
Year 5	$	676	$	694
Year 10	$	1,509	$	1,550

Assuming only the Transamerica Value Balanced Reorganization:

If the shares are redeemed at the end of each period:

					Combined
					Transamerica
Number of years	Transamerica		Transamerica		Balanced
you own your shares	Value Balanced		Balanced		(Pro Forma)
Class A
Year 1	$	699	$	703	$	700
Year 3	$	1,036	$	1,024	$	1,016
Year 5	$	1,397	$	1,368	$	1,353
Year 10	$	2,408	$	2,335	$	2,304
Class B*
Year 1	$	723	$	728	$	726
Year 3	$	1,034	$	1,003	$	997
Year 5	$	1,371	$	1,305	$	1,295
Year 10	$	2,554	$	2,419	$	2,396
Class C
Year 1	$	323	$	317	$	313
Year 3	$	692	$	670	$	658
Year 5	$	1,188	$	1,149	$	1,129
Year 10	$	2,553	$	2,472	$	2,431

If the shares are not redeemed:

					Combined
					Transamerica
Number of years	Transamerica		Transamerica		Balanced
you own your shares	Value Balanced		Balanced		(Pro Forma)
Class B*
Year 1	$	223	$	228	$	226
Year 3	$	734	$	703	$	697
Year 5	$	1,271	$	1,205	$	1,195
Year 10	$	2,554	$	2,419	$	2,396
Class C
Year 1	$	223	$	217	$	213

20

					Combined
					Transamerica
Number of years	Transamerica		Transamerica		Balanced
you own your shares	Value Balanced		Balanced		(Pro Forma)
Year 3	$	692	$	670	$	658
Year 5	$	1,188	$	1,149	$	1,129
Year 10	$	2,553	$	2,472	$	2,431

* Examples for Class B shares assume conversion to Class A shares 8 years after purchase.

Assuming both Group 1 Reorganizations:

If the shares are redeemed at the end of each period:

							Combined
	Transamerica						Transamerica
Number of years	Premier Balanced		Transamerica		Transamerica		Balanced
you own your shares	Fund		Value Balanced		Balanced		(Pro Forma)
Class A
Year 1		N/A	$	699	$	703	$	697
Year 3		N/A	$	1,036	$	1,024	$	1,007
Year 5		N/A	$	1,397	$	1,368	$	1,338
Year 10		N/A	$	2,408	$	2,335	$	2,273
Class B*
Year 1		N/A	$	723	$	728	$	723
Year 3		N/A	$	1,034	$	1,003	$	988
Year 5		N/A	$	1,371	$	1,305	$	1,280
Year 10		N/A	$	2,554	$	2,419	$	2,365
Class C
Year 1		N/A	$	323	$	317	$	310
Year 3		N/A	$	692	$	670	$	649
Year 5		N/A	$	1,188	$	1,149	$	1,114
Year 10		N/A	$	2,553	$	2,472	$	2,400
Investor Class / Class P
Year 1	$	112		N/A		N/A	$	112
Year 3	$	384		N/A		N/A	$	392
Year 5	$	676		N/A		N/A	$	694
Year 10	$	1,509		N/A		N/A	$	1,550

If the shares are not redeemed:

					Combined
					Transamerica
Number of years	Transamerica		Transamerica		Balanced
you own your shares	Value Balanced		Balanced		(Pro Forma)
Class B*
Year 1	$	223	$	228	$	226
Year 3	$	734	$	703	$	697
Year 5	$	1,271	$	1,205	$	1,195
Year 10	$	2,554	$	2,419	$	2,396
Class C
Year 1	$	223	$	217	$	213
Year 3	$	692	$	670	$	658
Year 5	$	1,188	$	1,149	$	1,129
Year 10	$	2,553	$	2,472	$	2,431

* Examples for Class B shares assume conversion to Class A shares 8 years after purchase.

21

REASONS FOR THE PROPOSED REORGANIZATIONS

          The Board of each Target Fund, including its Independent Directors, have unanimously determined that the proposed Reorganization would be in the best interests of each Target Fund and would not dilute the interests of the existing shareholders of each Target Fund. The Board of the Destination Fund, including the Independent Trustees, have unanimously determined that the Reorganization would be in the best interests of the Destination Fund and would not dilute the interests of the existing shareholders of the Destination Fund. Each Board believes that the proposed Reorganization will be advantageous to the shareholders of the Fund it oversees. The Board Members considered the potential impact of the proposed Reorganization on each Funds’ shareholders and a variety of related factors, including, among others:

General Considerations

• The Board Members considered that the Reorganization presents an opportunity for the shareholders of each Target Fund to become investors in a combined fund that has a larger asset size without the obligation to pay commissions or other transaction costs that a fund normally incurs when purchasing securities. The Board Members considered TAM’s belief that this opportunity may give the combined Destination Fund the ability to diversify further its holdings and effect larger portfolio trading transactions, for the benefit of shareholders.

• The Board Members considered that the Reorganization could eliminate any confusion in the marketplace caused by having multiple funds with similar investment mandates and enhance the potential for the combined Destination Fund to achieve growth in assets. The Board Members noted that TAM believes that the combined Destination Fund may be better positioned to attract assets than each Target Fund, and that the larger size of the combined Destination Fund may offer the potential for greater economies of scale by enabling the combined Destination Fund to obtain better net prices on securities trades and by reducing per share expenses as fixed expenses are shared over a larger asset base.

• The Board Members considered that the Reorganization could eliminate certain redundancies and inefficiencies in the Transamerica fund complex product line offerings, which could strengthen TAM’s ability to pursue investment and marketing opportunities on behalf of the Transamerica funds. The Board Members also considered that the Reorganization is one of a number of reorganizations and other initiatives recently approved by the Board Members of the Transamerica funds. The Board Members noted that the initiatives are designed to streamline the Transamerica fund complex, to promote operating efficiencies, and to result in a more cohesive fund platform.

Fees and Expenses

• For Transamerica Value Balanced, the Board Members considered that the pro forma gross expense ratios of the combined Destination Fund are expected to be lower for the Class A, Class B and Class C shares of the combined Destination Fund as compared to the corresponding class of shares of Transamerica Value Balanced.

• For Transamerica Premier Balanced Fund, the Board Members considered that the pro forma gross expense ratio of the combined Destination Fund is expected to be higher for the combined Destination Fund’s Class P shares than as compared to the corresponding class of shares of Transamerica Premier Balanced Fund. The Board Members also considered that TAM’s expectation that gross expense levels would remain generally the same for the combined Destination Fund’s Class P shares and that TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Destination Fund to the extent that the total operating expenses of Class P of the Destination Fund exceed certain operating expense levels. The Board

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Members considered that TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Destination Fund to the extent that the total operating expenses of Class A, Class B or Class C of the Destination Fund exceed certain operating expense levels.

• The Board Members considered that TAM agreed to lower its advisory fee for the Destination Fund.

• The Board Members considered that, given the expected costs and benefits of the Reorganization, the expenses associated with the preparation, printing and mailing of any shareholder communications, including this Information Statement/Prospectus, and any regulatory filings in connection with the Reorganization, would be shared by TAM, and, subject to certain limits, the Target Funds and the Destination Fund.

Investment Performance

• The Board Members noted that the Destination Fund’s performance was higher than the performance of Transamerica Value Balanced for the 1-, 3-, 5- and 10-year periods ended February 28, 2009. The Board Members also noted that the Destination Fund’s performance was higher than the performance of Transamerica Premier Balanced Fund for the 1-year and 3-year periods ended February 28, 2009. However, the Board Members also noted that the performance of Transamerica Premier Balanced Fund was higher than the Destination Fund’s performance for the 5- and 10-year periods ended February 28, 2009.

Tax

• The Board Members considered the expected tax-free nature of the Reorganization for U.S. federal income tax purposes.

Investment Program

• The Board Members considered the investment objectives and policies of the Destination Fund and their compatibility with those of each Target Fund.

• The Board Members considered that TAM is the adviser and TIM is the sub-adviser to each Target Fund and the Destination Fund.

Other Considerations

• The Board Members considered the terms and conditions of the Agreement and Plan of Reorganization.

• The Board Members considered that the portfolio managers of the combined Destination Fund may conclude that a significant number of holdings of the Target Funds may not be consistent with the combined Destination Fund’s long-term investment strategy, and may dispose of such positions, but that TAM represented that portfolio transition should not have a material adverse effect on the Funds and their shareholders.

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CAPITALIZATION

          The following tables set forth the capitalization of each Target Fund and the Destination Fund as of August 7, 2009 and the pro forma combined capitalization of the combined Destination Fund as if the Reorganization had occurred on that date. If the Reorganization is consummated, the actual exchange ratios on the Closing Date may vary from the exchange ratios used in the computation below. This is due to changes in the market value of the portfolio securities of the Funds between August 7, 2009 and the Closing Date, changes in the amount of undistributed net investment income and net realized capital gains of the Funds during that period resulting from income and distributions, and changes in the accrued liabilities of the Funds during the same period.

Assuming only the Transamerica Premier Balanced Fund Reorganization:

	Transamerica				Transamerica			Pro Forma
	Premier Balanced		Transamerica		Balanced Pro Forma			Transamerica
	Fund		Balanced		Adjustments			Balanced
Net Assets (000’s)
Class A		—	$	58,588				$	58,588
Class B		—	$	19,670				$	19,670
Class C		—	$	17,250				$	17,250
Class P		—		—	$	302,648		$	302,648
Investor Class(1)	$	302,648		—	$	(302,648	)		—
Net Asset Value Per Share
Class A		—	$	17.37				$	17.37
Class B		—	$	17.29				$	17.29
Class C		—	$	17.21				$	17.21
Class P		—		—		19.86		$	19.86
Investor Class(1)	$	19.86		—	$	(19.86	)		—
Shares Outstanding (000’s)
Class A		—		3,373					3,373
Class B		—		1,138					1,138
Class C		—		1,002					1,002
Class P		—		—		15,392			15,392
Investor Class(1)		15,392		—		(15,392	)		—

⁽¹⁾ Investor Class shares of Transamerica Premier Balanced Fund will receive Class P shares of the Destination Fund following the Reorganization.

Assuming only the Transamerica Value Balanced Reorganization:

								Pro Forma
	Transamerica		Transamerica		Transamerica Balanced			Transamerica
	Value Balanced		Balanced		Pro Forma Adjustments			Balanced
Net Assets (000’s)
Class A	$	18,142	$	58,588				$	76,730
Class B	$	4,157	$	19,670				$	23,827
Class C	$	5,213	$	17,250				$	22,463
Net Asset Value Per Share
Class A	$	9.51	$	17.37	$	(9.51	)	$	17.37
Class B	$	9.48	$	17.29	$	(9.48	)	$	17.29
Class C	$	9.47	$	17.21	$	(9.47	)	$	17.21
Shares Outstanding (000’s)
Class A		1,907		3,373		(863	)		4,417
Class B		438		1,138		(198	)		1,378
Class C		550		1,002		(247	)		1,305

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Assuming both Group 1 Reorganizations:

	Transamerica		Transamerica				Transamerica			Pro Forma
	Premier		Value		Transamerica		Balanced Pro			Transamerica
	Balanced Fund		Balanced		Balanced		Forma Adjustments			Balanced
Net Assets (000’s)
Class A		—	$	18,142	$	58,588				$	76,730
Class B		—	$	4,157	$	19,670				$	23,827
Class C		—	$	5,213	$	17,250				$	22,463
Class P / Investor Class(1)	$	302,648		—		—				$	302,648
Net Asset Value Per Share
Class A		—	$	9.51	$	17.37	$	(9.51	)	$	17.37
Class B		—	$	9.48	$	17.29	$	(9.48	)	$	17.29
Class C		—	$	9.47	$	17.21	$	(9.47	)	$	17.21
Class P / Investor Class(1)	$	19.66		—		—				$	19.66
Shares Outstanding (000’s)
Class A		—		1,907		3,373		(863	)		4,417
Class B		—		438		1,138		(198	)		1,378
Class C		—		550		1,002		(247	)		1,305
Class P / Investor Class(1)		15,392		—		—					15,392

⁽¹⁾ Investor Class shares of Transamerica Premier Balanced Fund will receive Class P shares of the Destination Fund following the Reorganization.

          It is impossible to predict with any certainty how many shares of the Destination Fund will actually be received and distributed by your Target Fund on the Closing Date. The foregoing table should not be relied upon to determine the amount of Destination Fund shares that will actually be received and distributed.

ADDITIONAL INFORMATION

          For information relating to each Fund and its Reorganization, including tax capital loss carryforwards, the tax status of the Reorganization, a comparison of the fundamental investment policies of the Funds, how to buy, sell or exchange Fund shares, how each Fund values its securities, financial highlights information for each Fund and ownership of shares of the Funds, please see the sections immediately following the discussion of the Group 6 Reorganization.

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GROUP 2 REORGANIZATIONS

TRANSAMERICA PREMIER DIVERSIFIED EQUITY FUND
TRANSAMERICA PREMIER INSTITUTIONAL DIVERSIFIED EQUITY FUND
TRANSAMERICA SCIENCE & TECHNOLOGY
TRANSAMERICA TEMPLETON GLOBAL
(each, a “Target Fund” and together, the “Target Funds”)

AND

TRANSAMERICA DIVERSIFIED EQUITY
(the “Destination Fund”)

SUMMARY

     The following is a summary of more complete information appearing later in this Information Statement/Prospectus or incorporated herein. You should read carefully the entire Information Statement/Prospectus, including the form of Agreement and Plan of Reorganization attached as Exhibit A and the Portfolio Management Discussion attached as Exhibit B, because they contain details that are not in the summary.

     In each Reorganization, the Target Fund will be reorganized into the Destination Fund, with that Target Fund receiving shares of the corresponding class of the Destination Fund as shown in the following table:

Target Fund & Shares	Destination Fund & Shares
Transamerica Premier Diversified Equity Fund Investor Class	Transamerica Diversified Equity* Class P
Transamerica Premier Institutional Diversified Equity Fund Institutional Class	Transamerica Diversified Equity* Class I
Transamerica Science & Technology Class A Class B Class C Class I	Transamerica Diversified Equity* Class A Class B Class C Class I
Transamerica Templeton Global Class A Class B Class C	Transamerica Diversified Equity* Class A Class B Class C

* A newly-organized fund.

The consummation of one Reorganization is not contingent on the consummation of any other Reorganization.

          As explained below, Transamerica Diversified Equity will have substantially similar investment objectives and principal investment strategies and policies to those of Transamerica Premier Diversified Equity Fund. In addition, it should be noted that Templeton Investment Counsel, LLC (“Templeton”), which currently sub-advises Transamerica Templeton Global along with Transamerica Investment Management, LLC (“TIM”), will not have a sub-advisory relationship with the Destination Fund following the Reorganization.

          The Target Funds and the Destination Fund are advised by Transamerica Asset Management, Inc. (“TAM”). The tables below provide a comparison of certain features of the Funds. In the tables below, if a row extends across the entire table, the information applies to both the Destination Fund and the applicable Target Fund.

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Comparison of Transamerica Premier Diversified Equity Fund and Transamerica Premier Institutional
Diversified Equity Fund to Transamerica Diversified Equity

		Transamerica Premier
	Transamerica Premier	Institutional Diversified Equity	Transamerica Diversified
	Diversified Equity Fund	Fund	Equity
Investment Objective	The Fund seeks to maximize capital appreciation.
Principal Investment Strategies and Policies	The Fund’s sub-adviser, TIM, generally invests at least 80% of the Fund’s assets in a diversified portfolio of domestic equity securities. TIM uses an intrinsic valuation discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long-term, above-average rate of return. The Fund typically limits its holdings to fewer than 60 companies. TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual companies. As part of TIM’s strategy, the Fund’s portfolio is constructed one company at a time. Each company passes through a rigorous research process and stands on its own merits as a viable investment in TIM’s opinion. In projecting cash flows and determining earnings potential, TIM uses multiple factors such as:
	•    the quality of the management team
	•    the company’s ability to earn returns on capital in excess of the cost of capital
	•    competitive barriers to entry
	•    the financial condition of the company
	To achieve the Fund’s goal, TIM may invest in securities issued by companies of all sizes. Generally, however, TIM will invest in the securities of companies whose market capitalization (total market value of publicly traded securities) is greater than $500 million. Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options and swaps, and also in foreign securities. The Fund may invest its assets in cash, cash equivalent securities or short-term securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.
Investment Adviser	TAM
Sub-Adviser	TIM
Portfolio Managers	Gary U. Rollé, CFA Portfolio Manager (lead) Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.		Gary U. Rollé, CFA Kirk R. Feldhus Thomas E. Larkin, III John D. Lawrence, CFA Peter O. Lopez The Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.
	Geoffrey I. Edelstein, CFA, CIC
	Portfolio Manager (co) Geoffrey I. Edelstein is Principal, Managing Director and Portfolio Manager at TIM. He co-manages institutional and TIM’s private separate accounts and sub-advised funds in the Equity disciplines. Mr. Edelstein’s analytical responsibilities include the Consumer Staples sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Westcap was co-founded by Mr. Edelstein

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	Transamerica Premier
Transamerica Premier	Institutional Diversified Equity	Transamerica Diversified
Diversified Equity Fund	Fund	Equity
in 1992. Prior to Westcap, he practiced Corporate and Real Estate Law from 1988-1991. Mr. Edelstein earned a B.A. from University of Michigan and a J.D. from Northwestern University School of Law. He was a member of the AIMR Blue Ribbon Task Force on Soft Dollars, 1997, and has earned the right to use the Chartered Financial Analyst designation. He is also a member of the Board of Governors’ of the Investment Adviser Association and the Board of Directors of EMQ Families First, the largest children’s agency in California. Mr. Edelstein has 17 years of investment experience.
Kirk R. Feldhus Portfolio Manager (co) Kirk R. Feldhus is a Securities Analyst at TIM. He co-manages institutional and retail portfolios for the diversified equity and all-cap value strategies. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Feldhus served as Vice President at Crystal Cove Capital. He has worked as a research associate at Bank of America Securities and as a management consultant at Ernst & Young. He holds an M.B.A. from The Marshall School at the University of Southern California and earned a B.S. from Colorado State University. Mr. Feldhus has 9 years of investment experience.
Thomas E. Larkin, III Portfolio Manager (co) Mr. Larkin co-manages institutional and retail portfolios in the diversified equity strategy. In addition, his senior securities analyst responsibilities include covering the producer durables, autos and transportation, and the materials and processing sectors. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Larkin interned with Morgan Stanley in the Private Wealth Management Division and with Trust Company of the West as an analyst with their Worldwide Opportunities Emerging Markets Fund. He earned a B.A. in Economics from Duke University. Mr. Larkin is currently a CFA Level I candidate and has 8 years of investment experience.
John D. Lawrence, CFA Portfolio Manager (co) John D. Lawrence is a Portfolio Manager at TIM. He has portfolio management responsibilities on sub-advised funds and institutional separate accounts in the Growth Equity discipline. Mr. Lawrence’s analyst responsibilities include covering the Energy, Consumer Discretionary and the Utilities sectors. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Lawrence was a Research Associate at Credit Suisse First Boston and an Assistant Vice President at Sanders Morris Harris. He holds an M.B.A. from University of California, Los Angeles and a B.A. from Rice University. Mr. Lawrence has earned the right to use the Chartered Financial Analyst designation and has 8 years of investment experience.

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		Transamerica Premier
	Transamerica Premier	Institutional Diversified Equity	Transamerica Diversified
	Diversified Equity Fund	Fund	Equity
	Peter O. Lopez Portfolio Manager (co) Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as a Senior Fixed Income Analyst for Transamerica Investment Services, Inc. from 1997-2000. He holds an M.B.A. in Finance and Accounting from The University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 18 years of investment experience. Each Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.
Business	A diversified open-end investment management company organized as a series of Transamerica Premier Funds, a Maryland corporation.		A diversified open-end investment management company organized as a series of Transamerica Funds, a Delaware statutory trust.
Net Assets (as of June 30, 2009)	$225,928,512	$1,785,602	N/A

Classes of Shares, Fees and Expenses

		Transamerica Premier
	Transamerica Premier	Institutional Diversified Equity	Transamerica Diversified
	Diversified Equity Fund	Fund	Equity
Sales Charges and Fees	Investor Class shares are offered without an initial sales charge. Investor Class shares are not subject to a contingent deferred sales charge. Investor Class shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.25% of the average daily net assets of the Fund. The fee accrues daily and is based on an annual percentage of the daily average net assets.	Institutional Class shares are offered without an initial sales charge. Institutional Class shares are not subject to a contingent deferred sales charge. Institutional Class shares are not subject to distribution and service (12b-1) fees.	Class P shares are offered without an initial sales charge. Class P shares are available only to former investors in Investor Class shares of Transamerica Premier Funds. Class P shares are not subject to a contingent deferred sales charge. Class P shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.25% of the average daily net assets of the Fund. The fee accrues daily and is based on an annual percentage of the daily average net assets. Class I shares are offered without an initial sales charge.

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		Transamerica Premier
	Transamerica Premier	Institutional Diversified Equity	Transamerica Diversified
	Diversified Equity Fund	Fund	Equity
			Class I shares are not subject to a contingent deferred sales charge. Class I shares are not subject to distribution and service (12b-1) fees.
Advisory Fees	TAM is entitled to receive an advisory fee based on an annual rate of the Fund’s average daily net assets:    •  0.75% for the first $1 billion of assets;    •  0.72% of the next $1 billion of assets; and    •  0.70% of assets in excess of $2 billion. For the fiscal year ended December 31, 2008, the Fund paid advisory fees of 0.58% of the Fund’s average daily net assets.	TAM is entitled to receive an advisory fee based on an annual rate of 0.73% of the Fund’s average daily net assets. The advisory fee is accrued daily and paid monthly. For the fiscal year ended December 31, 2008, the Fund paid advisory fees of 0.00% of the Fund’s average daily net assets.	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets):    •  0.73% for the first $500 million of assets;    •  0.70% for assets over $500 million and up to $2.5 billion; and    •  0.65% for assets over $2.5 billion.
Fee Waiver and Expense Limitations	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.15%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.15% (other than interest, taxes, brokerage commissions and extraordinary expenses).	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 0.75%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 0.75% (other than interest, taxes, brokerage commissions and extraordinary expenses).	TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Fund to the extent that the total expenses of Class I exceed 1.17% (excluding 12b-1 fees (if any) and extraordinary expenses). There can be no assurance that TAM will extend its contractual obligations beyond March 1, 2011. TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.15% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.
Gross and Net Expenses	For a comparison of the gross and net expenses of the Funds please see the class fee tables in the “The Funds’ Fees and Expenses” section.

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Comparison of Transamerica Science & Technology to Transamerica Diversified Equity

	Transamerica Science & Technology	Transamerica Diversified Equity
Investment Objective	The objective of the Fund is long-term growth of capital.	The Fund seeks to maximize capital appreciation.
Principal Investment Strategies and Policies	TIM seeks to achieve this objective by investing, under normal circumstances, at least 80% of its net assets in common stocks of companies that are expected to benefit from the development, advancement and use of science and technology. These companies may include, without limitation, companies that develop, produce or distribute products or services in the computer, semi-conductor, software, electronics, media, communications, health care, and biotechnology sectors. In choosing securities, the portfolio managers take a fundamental and research-driven approach to investing in growth stocks. The Fund generally invests in companies that rely extensively on technology in their product development or operations and have benefited from technological progress in their operating history or have enabled such progress in others, with a particular focus on companies in developing segments of the sector. The portfolio managers seek to identify the companies best positioned to benefit from change; generally those with superior business models, proven management teams and businesses that are producing substantial cash flow. Critical to the investment process is the identification of companies exhibiting the highest growth potential at the most attractive prices/valuations. TIM seeks to pay a fair price relative to a company’s intrinsic business value and/or projected growth rate or relative to alternative investments within an industry. The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.	TIM generally invests at least 80% of the Fund’s assets in a diversified portfolio of domestic equity securities. TIM, uses an intrinsic valuation discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long-term, above-average rate of return. The Fund typically limits its holdings to fewer than 60 companies. TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual companies. As part of TIM’s strategy, the Fund’s portfolio is constructed one company at a time. Each company passes through a rigorous research process and stands on its own merits as a viable investment in TIM’s opinion. In projecting cash flows and determining earnings potential, TIM uses multiple factors such as: •    the quality of the management team •    the company’s ability to earn returns on capital in excess of the cost of capital •    competitive barriers to entry •    the financial condition of the company To achieve the Fund’s goal, TIM may invest in securities issued by companies of all sizes. Generally, however, TIM will invest in the securities of companies whose market capitalization (total market value of publicly traded securities) is greater than $500 million. Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options and swaps, and also in foreign securities. The Fund may invest its assets in cash, cash equivalent securities or short-term securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.
Investment Adviser	TAM
Sub-Adviser	TIM

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	Transamerica Science & Technology	Transamerica Diversified Equity
Portfolio mangers	Kirk J. Kim Portfolio Manager (lead) Kirk J. Kim is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. He holds a B.S. in Finance from the University of Southern California. Mr. Kim has 13 years of investment experience. Jeffrey J. Hoo, CFA Portfolio Manager (co) Jeffrey J. Hoo is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Microcap Equity discipline. Mr. Hoo’s analytical responsibilities include the healthcare sector and industries within the consumer discretionary sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Hoo worked at Sony Pictures Entertainment and KPMG. He is also a past Vice President and board member of the Asian Professional Exchange of Los Angeles. Mr. Hoo earned a B.A. from Duke University and an M.B.A. from the University of California, Los Angeles. He has earned the right to use the Chartered Financial Analyst designation. Mr. Hoo has 11 years of investment experience. Erik U. Rollé Portfolio Manager (co) Erik U. Rollé is a Securities Analyst and Co-Portfolio Manager at TIM. Mr. Rollé co-manages sub-advised funds and institutional separate accounts in the Growth Equity discipline. Prior to joining TIM in 2005, Mr. Rollé worked as a Research Associate at Bradford & Marzec where his primary responsibilities were within trading and credit research. He received a B.S. in Finance and a B.S. in Journalism from the University of Colorado at Boulder. Mr. Rollé has 6 years of investment experience. Joshua D. Shaskan, CFA Portfolio Manager (co) Joshua D. Shaskan is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Small and Small/Mid (SMID) Growth Equity disciplines. He joined TIM in 2005 when the firm acquired Westcap Investors LLC. Prior to Westcap, Mr. Shaskan served as an Investment Specialist for three years at Wells Fargo Securities and was also previously a Financial Advisor at Prudential Securities. He earned a B.A. from the University of California, Davis, and an M.B.A. from the University of California, Los Angeles. Mr. Shaskan has earned the right to use the Chartered Financial Analyst designation and has 16 years of investment experience. The Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.	Gary U. Rollé, CFA Kirk R. Feldhus Thomas E. Larkin, III John D. Lawrence, CFA Peter O. Lopez The biographical information for these portfolio managers is provided above. The Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.

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	Transamerica Science & Technology	Transamerica Diversified Equity
Business	A non-diversified open-end investment management company organized as a series of Transamerica Funds, a Delaware statutory trust.
Net Assets (as of June 30, 2009)	$59,515,731	N/A

Classes of Shares, Fees and Expenses

	Transamerica Science & Technology	Transamerica Diversified Equity
Sales Charges and Fees	Class A shares are subject to a maximum initial sales charge of 5.50%. Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge for 24 months after purchase. Class B shares are subject to a maximum deferred sales charge of 5.00%, which declines during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later). Class C shares are subject to maximum deferred sales charge of 1.00% if redeemed during the first 12 months of purchase. Class A shares, Class B shares and Class C shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.35% for Class A shares, 1.00% for Class B shares and 1.00% Class C shares. Class I shares are offered without an initial sales charge. Class I shares are not subject to a contingent deferred sales charge. Class I shares are not subject to distribution and service (12b-1) fees.
Advisory Fees	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets): •    0.78% for the first $500 million of assets; and •    0.70% for assets over $500 million.	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets): •    0.73% for the first $500 million of assets; •    0.70% for assets over $500 million and up to $2.5 billion; and
	For the fiscal year ended October 31, 2008, the Fund paid advisory fees of 0.78% of the Fund’s average daily net assets.	•    0.65% for assets over $2.5 billion.
Fee waiver and expense limitation	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.18%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of Fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.18%, excluding 12b-1 fees and extraordinary expenses.	TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Destination Fund to the extent that the total expenses of Class A, Class B, Class C or Class I of the Destination Fund exceed 1.17% (excluding 12b-1 fees (if any) and extraordinary expenses). There can be no assurance that TAM will extend its contractual obligations beyond March 1, 2011.

Comparison of Transamerica Templeton Global to Transamerica Diversified Equity

	Transamerica Templeton Global	Transamerica Diversified Equity
Investment Objective	The objective of the Fund is to seek long-term growth of capital.	The Fund seeks to maximize capital appreciation.

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	Transamerica Templeton Global	Transamerica Diversified Equity
Principal Investment Strategies and Policies	The Fund’s assets are allocated between two sub-advisers, TIM and Templeton. TIM manages a portion of the Fund’s assets composed of domestic securities (called the “domestic portfolio”), and Templeton manages a portion of the Fund’s assets composed of non-U.S. securities (called the “international portfolio”). The percentage of assets allocated to each manager generally is based on the weighting of securities from U.S. and foreign issuers comprising the Morgan Stanley Capital International World Index (“MSCIW Index”), a market capitalization-weighted benchmark index made up of equities from 23 countries, including the U.S. Each of the domestic and international percentages of the Fund are adjusted periodically to account for changes that may be made in the composition of the MSCIW Index. Domestic Portfolio. The Fund will invest, under normal circumstances, at least 80% of its assets in the “domestic portfolio” in a diversified portfolio of domestic common stocks that are believed by TIM to have the defining feature of premier growth companies that are undervalued in the stock market. TIM uses a “bottom-up” approach to investing and builds the Fund’s portfolio one company at a time by investing Fund assets principally in equity securities. TIM believes in long-term investing and does not attempt to time the market. TIM buys securities of companies it believes have the defining features of premier growth companies that are undervalued in the stock market. Premier companies, in the opinion of TIM, have many or all of the following features — shareholder-oriented management, dominance in market share, cost production advantages, leading brands, self-financed growth and attractive reinvestment opportunities. International Portfolio. Templeton seeks to achieve the Fund’s objective by investing in foreign securities. Templeton normally will invest the assets of the “international portfolio” primarily in equity securities. An equity security, or stock, represents a proportionate share of the ownership of a company. Its value is based on the success of the company’s business, any income paid to stockholders, the value of the company’s assets and general market conditions. Common stocks, preferred stocks and convertible securities are examples of equity securities. Convertible securities generally are debt securities or preferred stock that may be converted into common stock after certain time periods or under certain circumstances. For purposes of the Fund’s investments, “foreign securities” means those securities issued by companies that:	TIM generally invests at least 80% of the Fund’s assets in a diversified portfolio of domestic equity securities. TIM, uses an intrinsic valuation discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long-term, above-average rate of return. The Fund typically limits its holdings to fewer than 60 companies. TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual companies. As part of TIM’s strategy, the Fund’s portfolio is constructed one company at a time. Each company passes through a rigorous research process and stands on its own merits as a viable investment in TIM’s opinion. In projecting cash flows and determining earnings potential, TIM uses multiple factors such as: •    the quality of the management team •    the company’s ability to earn returns on capital in excess of the cost of capital •    competitive barriers to entry •    the financial condition of the company To achieve the Fund’s goal, TIM may invest in securities issued by companies of all sizes. Generally, however, TIM will invest in the securities of companies whose market capitalization (total market value of publicly traded securities) is greater than $500 million. Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options and swaps, and also in foreign securities. The Fund may invest its assets in cash, cash equivalent securities or short-term securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.
	•    have their principal securities trading markets outside the U.S.; or

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Transamerica Templeton Global	Transamerica Diversified Equity
•    derive 50% or more of their total revenue from either goods or services produced or sales made in markets outside the U.S.; or
•    have 50% or more of their assets outside the U.S.; or
•    are linked to non-U.S. dollar currencies; or
•    are organized under the laws of, or with principal offices in, another country. The Fund may invest a portion of its assets in smaller companies. The Fund considers smaller company stocks to be generally those with market capitalizations of less than $4 billion. Templeton may also invest in American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), which are certificates issued typically by a bank or trust company that give their holders the right to receive securities issued by a foreign or domestic company. Templeton, from time to time, may have significant investments in one or more countries or in particular sectors such as technology companies and financial institutions. Depending upon current market conditions, Templeton generally invests a portion of its total assets in debt securities of companies and governments located anywhere in the world. Templeton may use various derivative strategies seeking to protect its assets, implement a cash or tax management strategy or enhance its returns. With derivatives, the manager attempts to predict whether an underlying investment will increase or decrease in value at some future time. The manager considers various factors, such as availability and cost, in deciding whether to use a particular instrument or strategy. When choosing equity investments, Templeton applies a “bottom-up,” value-oriented, long-term approach, focusing on the market price of a company’s securities relative to the manager’s evaluation of the company’s long-term earnings, asset value and cash flow potential. The manager also considers and analyzes various measures relevant to stock valuation, such as a company’s price/cash flow ratio, price/earnings ratio, profit margins and liquidation value. The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

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	Transamerica Templeton Global	Transamerica Diversified Equity
Investment Adviser	TAM
Sub-Adviser(s)	TIM Templeton	TIM
Portfolio Managers	TIM: Gary U. Rollé, CFA The biographical information for Mr. Rollé is provided above. Templeton: Tina Sadler, CFA, Vice President, Portfolio Manager and Research Analyst, joined Templeton in 1997 and currently has global research responsibilities for global wireless telecommunication services, small-cap telecommunications, as well as building and construction materials. Antonio T. Docal, CFA, Senior Vice President, joined the Templeton organization in 2001. With more than 20 years of investment experience, Mr. Docal has research responsibility for the global chemical industry, as well as the telecommunications equipment sector. Prior to joining Templeton, Mr. Docal was Vice President and Director at Evergreen Funds in Boston, managing the Evergreen Latin America Fund and co-managing the Evergreen Emerging Markets Growth Fund and the Evergreen Global Opportunities Fund. Mr. Docal earned a B.A. in economics from Trinity College in Connecticut and an M.B.A. with concentrations in finance and international management from the Sloan School of Management at the Massachusetts Institute of Technology. Gary Motyl, CFA, President and Chief Investment Officer, Templeton Institutional Global Equities, manages several institutional mutual funds and separate account portfolios and has research responsibility for the global automobile industry. Mr. Motyl joined Templeton in 1981. The Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.	Gary U. Rollé, CFA Kirk R. Feldhus Thomas E. Larkin, III John D. Lawrence, CFA Peter O. Lopez The biographical information for these portfolio managers is provided above. The Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.
Business	A diversified open-end investment management company organized as a series of Transamerica Funds, a Delaware statutory trust.
Net Assets (as of June 30, 2009)	$71,750,016	N/A

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Classes of Shares, Fees and Expenses

	Transamerica Templeton Global	Transamerica Diversified Equity
Sales Charges and Fees	Class A shares are subject to a maximum initial sales charge of 5.50%. Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge for 24 months after purchase. Class B shares are subject to a maximum deferred sales charge of 5.00%, which declines during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later). Class C shares are subject to maximum deferred sales charge of 1.00% if redeemed during the first 12 months of purchase. Class A shares, Class B shares and Class C shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.35% for Class A shares, 1.00% for Class B shares and 1.00% Class C shares.
Advisory Fees	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets):	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets):
	•    0.80% for the first $500 million of assets; and	•    0.73% for the first $500 million of assets;
	•    0.70% for assets over $500 million.	•    0.70% for assets over $500 million and up to $2.5 billion; and
	For the fiscal year ended October 31, 2008, the Fund paid advisory fees of 0.80% of the Fund’s average daily net assets.	•    0.65% for assets over $2.5 billion.
Fee waiver and expense limitation	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses.	TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Destination Fund to the extent that the total expenses of Class A, Class B or Class C of the Destination Fund exceed 1.17% (excluding 12b-1 fees (if any) and extraordinary expenses). There can be no assurance that TAM will extend its contractual obligations beyond March 1, 2011.
Gross and Net Expenses	For a comparison of the gross and net expenses of the Funds, please see the class fee tables in the “The Funds’ Fees and Expenses” section.

Comparison of Principal Risks of Investing in the Funds

          Risk is inherent in all investing. The value of your investment in a Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in a Fund or your investment may not perform as well as other similar investments.

          Each Fund is subject to the following principal risks:

• Market. The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and

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internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

• Stocks. Stocks may be volatile — their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down.

• Growth Stocks. Growth securities can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

          Transamerica Premier Diversified Equity Fund, Transamerica Premier Institutional Diversified Equity Fund, Transamerica Templeton Global, and the Destination Fund are subject to the following additional principal risks:

• Derivatives. The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Sub-Adviser may not make use of derivatives for a variety of reasons.

• Foreign Securities. Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

- different accounting and reporting practices

- less information available to the public

- less (or different) regulation of securities markets

- more complex business negotiations

- less liquidity

- more fluctuations in prices

- delays in settling foreign securities transactions

- higher costs for holding shares (custodial fees)

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- higher transaction costs

- vulnerability to seizure and taxes

- political or financial instability and small markets

- different market trading days

• Value Investing. The value approach to investing carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock judged to be undervalued may actually be appropriately priced. The Fund may underperform other equity funds that use different investing styles. The Fund may also underperform other equity funds using the value style.

          Transamerica Premier Diversified Equity Fund, Transamerica Premier Institutional Diversified Equity Fund, and the Destination Fund are subject to the following additional principal risks:

• Focused Investing. To the extent the Fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

• Small- or Medium-Sized Companies. Investing in small and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

          Transamerica Science & Technology is subject to the following additional principal risks:

• Science and Technology Stocks. Securities of science and technology companies are strongly affected by worldwide scientific and technological developments and governmental policies, and, therefore, are generally dependent upon or associated with scientific technological issues. The entire value of the Fund may decrease if technology-related industries decline. Further, the prices of many science and technology companies have experienced considerable volatility in the past and may do so in the future.

• Health Care Sector. Health care companies are strongly affected by worldwide scientific or technological developments. Their products may rapidly become obsolete and are also often dependent on the developer’s ability to receive patents from regulatory agencies and then to enforce them in the market. A health care company’s valuation can often be based largely on the potential or actual performance of a limited number of products. A health care company’s valuation can be greatly affected if one of its products proves unsafe, ineffective or unprofitable. Many health care companies are also subject to significant government regulation and may be affected by changes in governmental policies. As a result, investments in the health and biotechnology segments

• Non-Diversification. Focusing investments in a small number of issuers, industries or foreign currencies increases risk. Because the Fund is non-diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio might be.

          Transamerica Templeton Global is subject to the following additional risks:

• Currency. When the Fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund.

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• Convertible Securities. Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

• Smaller Companies. Investing in smaller companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

• Emerging Markets. Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

• Fixed-Income Securities. The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

- market risk: fluctuations in market value

- interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

- prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

- extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

- default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund,

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or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

• Country, Sector or Industry Focus. To the extent the Fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the Fund will face a greater risk of loss due to factors affecting the single country, sector or industry than if the Fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, technology companies involve risks due to factors such as the rapid pace of product change, technological developments and new competition. Their stocks historically have been volatile in price, especially over the short term, often without regard to the merits of individual companies. Banks and financial institutions are subject to potentially restrictive governmental controls and regulations that may limit or adversely affect profitability and share price. In addition, securities in that sector may be very sensitive to interest rate changes throughout the world.

The Funds’ Past Performance

          The bar charts and tables below provide some indication of the risks of investing in each Target Fund by showing you how the performance of the Investor Class of Transamerica Premier Diversified Equity Fund, the Institutional Class of Transamerica Premier Institutional Diversified Equity Fund, Class A of Transamerica Science & Technology and Class A of Transamerica Templeton Global has varied from year to year for 10 years or since inception, as applicable, and how the average total returns of each Target Fund’s applicable class of shares for different periods compare to the returns of one or more broad measures of market performance. Absent any applicable limitation of or cap on the Target Funds’ expenses, performance would have been lower. The Class B, Class C and Class I shares of Transamerica Science & Technology and the Class B and Class C shares of Transamerica Templeton Global will have different performance from that shown in the bar chars below because they have different expenses than the share classes shown. No performance information is presented for the Destination Fund, because the Destination Fund is a new fund and its classes of shares are newly offered. A Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.

          Following the Reorganization, Transamerica Premier Diversified Equity Fund will be considered the surviving fund for performance purposes, because the Destination Fund will be managed by the same portfolio managers and will adopt the same investment objective and principal investment strategies as that Target Fund.

          Each Fund makes updated information available (available at no charge by calling the Funds’ toll-free number, [1-800-851-9777], or by visiting the Funds’ website at www.transamericafunds.com (select either “Transamerica Premier Funds” or “Transamerica Funds” for the Target Funds and “Transamerica Funds” for the Destination Fund)).

Transamerica Premier Diversified Equity Fund Annual Returns — Investor Class Shares
(per year ended 12/31)

The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	16.18	%	Quarter ended:	3/31/2000
Lowest:	(24.40	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 10.49%.

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Transamerica Premier Diversified Equity Fund Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

							10 Years or
Transamerica Premier Diversified Equity Fund	1 Year			5 Years			Life of Fund
Investor Class – Return before Taxes		(40.93	)%		(1.18	)%		0.35	%
Investor Class – Return after taxes on distributions(2)		(41.24	)%		(1.40	)%		0.15	%
Investor Class – Return after taxes on distributions and sale of fund shares(2)		(26.29	)%		(0.96	)%		0.30	%
S&P 500 Index(3)		(37.00	)%		(2.19	)%		(1.38	)%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.
(2)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(3)	The S&P 500 Index consists of 500 widely held, publicly traded common stocks. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Transamerica Premier Institutional Diversified Equity Fund Annual Returns — Institutional Class
Shares
(per year ended 12/31)

The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	7.50	%	Quarter ended:	9/30/2007
Lowest:	(24.70	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 5.90%.

Transamerica Premier Institutional Diversified Equity Fund Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

				10 Years or Life
Transamerica Premier Institutional Diversified Equity Fund	1 Year			of Fund(2)
Institutional Class – Return before Taxes		(40.98	)%		(3.47	)%
Institutional Class – Return after taxes on distributions(3)		(41.51	)%		(3.88	)%
Institutional Class – Return after taxes on distributions and sale of fund shares(3)		(25.95	)%		(2.84	)%
S&P 500 Index(4)		(37.00	)%		(4.72	)%

⁽¹⁾ Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.

(2)	The Fund commenced operations on February 1, 2005.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(4)	The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

42

Transamerica Science & Technology Annual Returns — Class A
(per year ended 12/31)

The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	35.04	%	Quarter ended:	12/31/2001
Lowest:	(34.51	)%	Quarter ended:	9/30/2001

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 25.38%.

Transamerica Science & Technology Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

							Life of
Transamerica Science & Technology	1 Year			5 Years			Fund(2)
Class A
Return before taxes		(52.03	)%		(7.10	)%		(14.72	)%
Return after taxes on distributions(3)		(52.03	)%		(7.28	)%		(14.82	)%
Return after taxes on distributions and sale of fund shares(3)		(33.82	)%		(5.83	)%		(11.03	)%
Class B (Return before Taxes Only)		(52.11	)%		(6.81	)%		(14.75	)%
Class C (Return before Taxes Only)		(49.99	)%		(6.63	)%		0.82	%
Class I (Return before Taxes Only)		(48.94	)%		N/A			(10.85	)%
Dow Jones U.S. Technology Index(4)		(42.85	)%		(5.21	)%		(13.81	)%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account. After-tax returns are presented for only one class and returns for other classes will vary.
(2)	Class A and Class B commenced operations on July 14, 2000. Class C commenced operations on November 11, 2002. Class I commenced operations on November 15, 2005.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(4)	The Dow Jones U.S. Technology Index is a widely recognized, unmanaged index of market performance that measures the performance of the technology sector of the U.S. equity market. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Note: Prior to August 1, 2006, a different sub-adviser managed Transamerica Science & Technology, and it used different investment strategies. The performance set forth prior to that date is attributable to the previous sub-adviser.

43

Transamerica Templeton Global Annual Returns — Class A
(per year ended 12/31)

The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	43.29	%	Quarter ended:	12/31/1999
Lowest:	(21.89	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 6.62%.

Transamerica Templeton Global Average Annual Total Returns
(for periods ended 12/31/2008) ⁽¹⁾

							10 Years or
							Life of
Transamerica Templeton Global	1 Year			5 Years			Fund(2)
Class A
Return before taxes		(46.67	)%		(4.06	)%		(2.87	)%
Return after taxes on distributions(3)		(46.76	)%		(4.18	)%		(3.11	)%
Return after taxes on distributions and sale of fund shares(3)		(30.25	)%		(3.37	)%		(2.33	)%
Class B (Return before Taxes Only)		(46.80	)%		(3.82	)%		(2.84	)%
Class C (Return before Taxes Only)		(44.57	)%		(3.65	)%		0.05	%
Morgan Stanley Capital International World ex U.S. Index (4)		(40.33	)%		0.00	%		(0.19	)%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account. After-tax returns are presented for only one class and returns for other classes will vary.
(2)	Class A commenced operations on October 1, 1992. Class B commenced operations on October 1, 1995. Class C commenced operations on November 11, 2002.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(4)	The Morgan Stanley Capital International World ex-U.S. Index is a widely recognized, unmanaged index of market performance made up of equities from over 20 countries, excluding the United States. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Note:  Prior to May 29, 2004, a different sub-adviser managed Transamerica Templeton Global, and it had a different investment objective and used different investment strategies. In addition, prior to August 1, 2006, another sub-adviser served as co-investment sub-adviser to the Fund and managed the Fund’s domestic equity component. Prior to October 27, 2006, the Fund employed a different investment program for the Fund’s domestic equity component. The performance set forth prior to these dates is attributable to the previous sub-advisers.

          The portfolio management discussion of each Fund’s performance for its last fiscal year is attached as Exhibit B.

44

The Funds’ Fees and Expenses

          Shareholders of the Target Funds and the Destination Fund pay various fees and expenses, either directly or indirectly. The tables below show the fees and expenses that you would pay if you were to buy and hold shares of each Fund. The fees and expenses in the tables appearing below are based on the expenses of the Funds for the twelve-month period ended April 30, 2009. The tables also show the pro forma expenses of the combined Destination Fund after giving effect both to each Reorganization and to all Group 2 Reorganizations based on pro forma net assets as of April 30, 2009. Pro forma numbers are estimated in good faith and are hypothetical. Actual expenses may vary significantly.

Assuming only the Transamerica Premier Diversified Equity Fund Reorganization:

	Transamerica					Transamerica
	Premier			Transamerica		Diversified
	Diversified			Diversified		Equity
	Equity Fund			Equity		(Pro Forma)
	Investor
	Class			Class P(a)		Class P
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A			N/A		N/A
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)
Management Fees		0.72	%		N/A		0.73	%
Rule 12b-1 Fees		0.25	%		N/A		0.25	%
Other Expenses		0.35	%		N/A		0.35	%
Total		1.32	%		N/A		1.33	%
Expense Reduction		0.17	%(c)		N/A		0.18	%(d)
Net Operating Expenses		1.15	%		N/A		1.15	%

(a)	Because Class P of Transamerica Diversified Equity is a new share class, no fee and expense information is available for the twelve-month period ended April 30, 2009.
(b)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(c)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.15%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.15% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(d)	TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.15% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.

Assuming only the Transamerica Premier Institutional Diversified Equity Fund Reorganization:

	Transamerica					Combined
	Premier					Transamerica
	Institutional			Transamerica		Diversified
	Diversified			Diversified		Equity
	Equity Fund			Equity		(Pro Forma)
	Institutional
	Class			Class I(a)		Class I
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A			N/A		N/A
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)
Management Fees		0.58	%		N/A		0.73	%
Rule 12b-1 Fees		0.00	%		N/A		0.00	%
Other Expenses		9.46	%		N/A		9.46	%
Total		10.04	%		N/A		10.19	%
Expense Reduction		9.29	%(c)		N/A		9.02	%(d)
Net Operating Expenses		0.75	%		N/A		1.17	%

(a)	Because Class I of Transamerica Diversified Equity is a new share class, no fee and expense information is available for the twelve-month period ended April 30, 2009.
(b)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(c)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 0.75%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 0.75% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(d)	TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Fund to the extent that the total expenses of Class I exceed 1.17% (excluding 12b-1 fees (if any) and extraordinary expenses). There can be no assurance that TAM will extend its contractual obligations beyond March 1, 2011.

45

Assuming only the Transamerica Science &Technology Reorganization:

						Combined								Combined
						Transamerica								Transamerica
	Transamerica			Transamerica		Diversified			Transamerica			Transamerica		Diversified
	Science &			Diversified		Equity			Science &			Diversified		Equity
	Technology			Equity		(Pro Forma)			Technology			Equity		(Pro Forma)
	Class A			Class A(a)		Class A			Class B			Class B(a)		Class B
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%		N/A		5.50	%		N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A	(b)		N/A		N/A	(b)		5.00	%(c)		N/A		5.00	%(c)
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(d)
Management Fees		0.78	%		N/A		0.73	%		0.78	%		N/A		0.73	%
Rule 12b-1 Fees		0.35	%		N/A		0.35	%		1.00	%		N/A		1.00	%
Other Expenses		0.78	%		N/A		0.78	%		1.05	%		N/A		1.06	%
Total		1.91	%		N/A		1.86	%		2.83	%		N/A		2.79	%
Expense Reduction		0.38	%(e)		N/A		0.34	%(f)		0.65	%(e)		N/A		0.62	%(f)
Net Operating Expenses		1.53	%		N/A		1.52	%		2.18	%		N/A		2.17	%

						Combined								Combined
						Transamerica								Transamerica
	Transamerica			Transamerica		Diversified			Transamerica			Transamerica		Diversified
	Science &			Diversified		Equity			Science &			Diversified		Equity
	Technology			Equity		(Pro Forma)			Technology			Equity		(Pro Forma)
	Class C			Class C(a)		Class C			Class I			Class I(a)		Class I
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A		N/A			N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		1.00	%(g)		N/A		1.00	%(g)		N/A			N/A		N/A
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(d)
Management Fees		0.78	%		N/A		0.73	%		0.78	%		N/A		0.73	%
Rule 12b-1 Fees		1.00	%		N/A		1.00	%		0.00	%		N/A		0.00	%
Other Expenses		0.77	%		N/A		0.77	%		0.20	%		N/A		0.20	%
Total		2.55	%		N/A		2.50	%		0.98	%		N/A		0.93	%
Expense Reduction		0.37	%(e)		N/A		0.33	%(f)		0.00	%(e)		N/A		0.00	%(f)
Net Operating Expenses		2.18	%		N/A		2.17	%		0.98	%		N/A		0.93	%

(a)	Because each of Class A, Class B, Class C and Class I of Transamerica Diversified Equity is a new share class, no fee and expense information is available for the twelve-month period ended April 30, 2009.
(b)	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
(c)	Purchases of Class B shares are subject to declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
(d)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(e)	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.18%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of Fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.18%, excluding 12b-1 fees and extraordinary expenses.
(f)	TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Destination Fund to the extent that the total expenses of Class A, Class B, Class C or Class I of the Destination Fund exceed 1.17% (excluding 12b-1 fees (if any) and extraordinary expenses). There can be no assurance that TAM will extend its contractual obligations beyond March 1, 2011.
(g)	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.

46

Assuming only the Transamerica Templeton Global Reorganization:

						Combined								Combined
						Transamerica								Transamerica
	Transamerica			Transamerica		Diversified			Transamerica			Transamerica		Diversified
	Templeton			Diversified		Equity			Templeton			Diversified		Equity
	Global			Equity		(Pro Forma)			Global			Equity		(Pro Forma)
	Class A			Class A(a)		Class A			Class B			Class B(a)		Class B
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%		N/A		5.50	%		N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A	(b)		N/A		N/A	(b)		5.00	%(c)		N/A		5.00	%(c)
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(d)
Management Fees		0.80	%		N/A		0.73	%		0.80	%		N/A		0.73	%
Rule 12b-1 Fees		0.35	%		N/A		0.35	%		1.00	%		N/A		1.00	%
Other Expenses		0.64	%		N/A		0.64	%		0.81	%		N/A		0.82	%
Total		1.79	%		N/A		1.72	%		2.61	%		N/A		2.55	%
Expense Reduction		0.24	%(e)		N/A		0.20	%(f)		0.41	%(e)		N/A		0.38	%(f)
Net Operating Expenses		1.55	%		N/A		1.52	%		2.20	%		N/A		2.17	%

							Combined
							Transamerica
	Transamerica			Transamerica			Diversified
	Templeton			Diversified			Equity
	Global			Equity			(Pro Forma)
	Class C			Class C(a)			Class C
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A			N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		1.00	%(g)		1.00	%		1.00	%(g)
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(d)
Management Fees		0.80	%		N/A			0.73	%
Rule 12b-1 Fees		1.00	%		N/A			1.00	%
Other Expenses		0.58	%		N/A			0.58	%
Total		2.38	%		N/A			2.31	%
Expense Reduction		0.18	%(e)		N/A			0.14	%(f)
Net Operating Expenses		2.20	%		N/A			2.17	%

(a)	Because each of Class A, Class B and Class C of Transamerica Diversified Equity is a new share class, no fee and expense information is available for the twelve-month period ended April 30, 2009.
(b)	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
(c)	Purchases of Class B shares are subject to declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
(d)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(e)	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses.
(f)	TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Destination Fund to the extent that the total expenses of Class A, Class B or Class C of the Destination Fund exceed 1.17% (excluding 12b-1 fees (if any) and extraordinary expenses). There can be no assurance that TAM will extend its contractual obligations beyond March 1, 2011.
(g)	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.

47

Assuming all Group 2 Reorganizations:

Transamerica

Combined

Transamerica

Transamerica

Premier

Transamerica

Premier

Transamerica

Diversified

Institutional

Transamerica

Diversified

Diversified

Diversified

Equity

Diversified

Diversified

Equity

Equity Fund

Equity

(Pro Forma)

Equity Fund

Equity

(Pro Forma)

Investor Class

Class P(a)

Class P

Institutional Class

Class I(a)

Class I

Shareholder Fees (fees paid directly from your investment)

Maximum sales charge (load) imposed on purchases (as a % of offering price)

N/A

N/A

N/A

N/A

N/A

N/A

Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)

N/A

N/A

N/A

N/A

N/A

N/A

Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)

Management Fees

0.72

%

N/A

0.73

%

0.58

%

N/A

0.73

%

Rule 12b-1 Fees

0.25

%

N/A

0.25

%

0.00

%

N/A

0.00

%

Other Expenses

0.35

%

N/A

0.35

%

9.46

%

N/A

0.09

%

Total

1.32

%

N/A

1.33

%

10.04

%

N/A

0.82

%

Expense Reduction

0.17

%(c)

N/A

0.18

%(d)

9.29

%(e)

N/A

0.00

%(f)

Net Operating Expenses

1.15

%

N/A

1.15

%

0.75

%

N/A

0.82

%

						Combined								Combined
						Transamerica								Transamerica
	Transamerica			Transamerica		Diversified			Transamerica			Transamerica		Diversified
	Science &			Diversified		Equity			Science &			Diversified		Equity
	Technology			Equity		(Pro Forma)			Technology			Equity		(Pro Forma)
	Class A			Class A(a)		Class A			Class B			Class B(a)		Class B
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%		N/A		5.50	%		N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A	(g)		N/A		N/A	(g)		5.00	%(h)		N/A		5.00	%(h)
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)
Management Fees		0.78	%		N/A		0.73	%		0.78	%		N/A		0.73	%
Rule 12b-1 Fees		0.35	%		N/A		0.35	%		1.00	%		N/A		1.00	%
Other Expenses		0.78	%		N/A		0.63	%		1.05	%		N/A		0.83	%
Total		1.91	%		N/A		1.71	%		2.83	%		N/A		2.56	%
Expense Reduction		0.38	%(i)		N/A		0.19	%(j)		0.65	%(i)		N/A		0.39	%(j)
Net Operating Expenses		1.53	%		N/A		1.52	%		2.18	%		N/A		2.17	%

						Combined								Combined
						Transamerica								Transamerica
	Transamerica			Transamerica		Diversified			Transamerica			Transamerica		Diversified
	Science &			Diversified		Equity			Science &			Diversified		Equity
	Technology			Equity		(Pro Forma)			Technology			Equity		(Pro Forma)
	Class C			Class C(a)		Class C			Class I			Class I(a)		Class I
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A		N/A			N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		1.00	%(k)		N/A		1.00	%(k)		N/A			N/A		N/A
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)
Management Fees		0.78	%		N/A		0.73	%		0.78	%		N/A		0.73	%
Rule 12b-1 Fees		1.00	%		N/A		1.00	%		0.00	%		N/A		0.00	%
Other Expenses		0.77	%		N/A		0.58	%		0.20	%		N/A		0.09	%
Total		2.55	%		N/A		2.31	%		0.98	%		N/A		0.82	%
Expense Reduction		0.37	%(i)		N/A		0.14	%(j)		0.00	%(i)		N/A		0.00	%(j)
Net Operating Expenses		2.18	%		N/A		2.17	%		0.98	%		N/A		0.82	%

48

						Combined								Combined
						Transamerica								Transamerica
	Transamerica			Transamerica		Diversified			Transamerica			Transamerica		Diversified
	Templeton			Diversified		Equity			Templeton			Diversified		Equity
	Global			Equity		(Pro Forma)			Global			Equity		(Pro Forma)
	Class A			Class A(a)		Class A			Class B			Class B(a)		Class B
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%		N/A		5.50	%		N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A	(g)		N/A		N/A	(g)		5.00	%(h)		N/A		5.00	%(h)
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)
Management Fees		0.80	%		N/A		0.73	%		0.80	%		N/A		0.73	%
Rule 12b-1 Fees		0.35	%		N/A		0.35	%		1.00	%		N/A		1.00	%
Other Expenses		0.64	%		N/A		0.63	%		0.81	%		N/A		0.83	%
Total		1.79	%		N/A		1.71	%		2.61	%		N/A		2.56	%
Expense Reduction		0.24	%(l)		N/A		0.19	%(j)		0.41	%(l)		N/A		0.39	%(j)
Net Operating Expenses		1.55	%		N/A		1.52	%		2.20	%		N/A		2.17	%

						Combined
						Transamerica
	Transamerica			Transamerica		Diversified
	Templeton			Diversified		Equity
	Global			Equity		(Pro Forma)
	Class C			Class C(a)		Class C
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		1.00	%(k)		N/A		1.00	%(k)
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)
Management Fees		0.80	%		N/A		0.73	%
Rule 12b-1 Fees		1.00	%		N/A		1.00	%
Other Expenses		0.58	%		N/A		0.58	%
Total		2.38	%		N/A		2.31	%
Expense Reduction		0.18	%(l)		N/A		0.14	%(j)
Net Operating Expenses		2.20	%		N/A		2.17	%

(a)	Because Transamerica Diversified Equity is a new fund, no fee and expense information is available for any of its share classes for the twelve-month period ended April 30, 2009.
(b)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(c)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.15%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.15% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(d)	TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.15% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.
(e)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 0.75%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 0.75% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(f)	TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Fund to the extent that the total expenses of Class I exceed 1.17% (excluding 12b-1 fees (if any) and extraordinary expenses). There can be no assurance that TAM will extend its contractual obligations beyond March 1, 2011.
(g)	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
(h)	Purchases of Class B shares are subject to declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
(i)	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.18%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of Fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.18%, excluding 12b-1 fees and extraordinary expenses.
(j)	TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Destination Fund to the extent that the total expenses of Class A, Class B, Class C or Class I of the Destination Fund exceed 1.17% (excluding 12b-1 fees (if any) and extraordinary expenses). There can be no assurance that TAM will extend its contractual obligations beyond March 1, 2011.
(k)	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
(l)	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses.

          The hypothetical examples below help you compare the cost of investing in each Fund. Each example assumes that:

• you invest $10,000 in each Fund;

• you reinvest all dividends and distributions without a sales charge;

• your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance); and

• each Fund’s operating expenses remain the same.

          Each example also assumes no fees for IRA accounts, if applicable. Costs are the same whether you redeem at the end of any period or not, except where indicated for Class B and Class C shares. Pro forma expenses are included assuming a Reorganization of the Funds. The examples are for comparison purposes only and do not represent the Funds’ actual expenses or returns, either past or future. Because actual return and expenses will be different, the examples are for comparison only.

49

Assuming only the Transamerica Premier Diversified Equity Fund Reorganization:

If the shares are redeemed at the end of each period:

			Combined
	Transamerica		Transamerica
	Premier		Diversified
Number of years	Diversified		Equity
you own your shares	Equity Fund		(Pro Forma)
Investor Class / Class P
Year 1	$	117	$	117
Year 3	$	402	$	404
Year 5	$	707	$	712
Year 10	$	1,575	$	1,586

Assuming only the Transamerica Premier Institutional Diversified Equity Fund Reorganization:

If the shares are redeemed at the end of each period:

	Transamerica		Combined
	Premier		Transamerica
	Institutional		Diversified
Number of years	Diversified		Equity
you own your shares	Equity Fund		(Pro Forma)
Institutional Class / Class I
Year 1	$	77	$	119
Year 3	$	2,066	$	2,127
Year 5	$	3,859	$	3,932
Year 10	$	7,610	$	7,685

Assuming only the Transamerica Science & Technology Reorganization:

If the shares are redeemed at the end of each period:

			Combined
			Transamerica
	Transamerica		Diversified
Number of years	Science &		Equity
you own your shares	Technology		(Pro Forma)
Class A
Year 1	$	697	$	696
Year 3	$	1,082	$	1,071
Year 5	$	1,492	$	1,471
Year 10	$	2,631	$	2,584
Class B*
Year 1	$	721	$	720
Year 3	$	1,116	$	1,107
Year 5	$	1,536	$	1,519
Year 10	$	2,890	$	2,850
Class C
Year 1	$	321	$	320
Year 3	$	758	$	747
Year 5	$	1,322	$	1,301
Year 10	$	2,858	$	2,811

50

			Combined
			Transamerica
	Transamerica		Diversified
Number of years	Science &		Equity
you own your shares	Technology		(Pro Forma)
Class I
Year 1	$	100	$	95
Year 3	$	312	$	296
Year 5	$	542	$	515
Year 10	$	1,201	$	1,143

If the shares are not redeemed:

			Combined
	Transamerica		Transamerica
Number of years	Science &		Diversified Equity
you own your shares	Technology		(Pro Forma)
Class B*
Year 1	$	221	$	220
Year 3	$	816	$	807
Year 5	$	1,436	$	1,419
Year 10	$	2,890	$	2,850
Class C
Year 1	$	221	$	220
Year 3	$	758	$	747
Year 5	$	1,322	$	1,301
Year 10	$	2,858	$	2,811

* Examples for Class B shares assume conversion to Class A shares 8 years after purchase.

Assuming only the Transamerica Templeton Global Reorganization:

If the shares are redeemed at the end of each period:

			Combined
			Transamerica
	Transamerica		Diversified
Number of years	Templeton		Equity
you own your shares	Global		(Pro Forma)
Class A
Year 1	$	699	$	696
Year 3	$	1,060	$	1,044
Year 5	$	1,445	$	1,414
Year 10	$	2,521	$	2,453
Class B*
Year 1	$	723	$	720
Year 3	$	1,073	$	1,057
Year 5	$	1,449	$	1,421
Year 10	$	2,714	$	2,653
Class C
Year 1	$	323	$	320
Year 3	$	725	$	708
Year 5	$	1,254	$	1,223
Year 10	$	2,703	$	2,635

51

If the shares are not redeemed:

			Combined
			Transamerica
Number of years	Transamerica		Diversified Equity
you own your shares	Templeton Global		(Pro Forma)
Class B*
Year 1	$	223	$	220
Year 3	$	773	$	757
Year 5	$	1,349	$	1,321
Year 10	$	2,714	$	2,653
Class C
Year 1	$	223	$	220
Year 3	$	725	$	708
Year 5	$	1,254	$	1,223
Year 10	$	2,703	$	2,635

* Examples for Class B shares assume conversion to Class A shares 8 years after purchase.

Assuming all Group 2 Reorganizations:

If the shares are redeemed at the end of each period:

			Transamerica						Combined
	Transamerica		Premier						Transamerica
Number of years	Premier		Institutional		Transamerica		Transamerica		Diversified
you own your	Diversified		Diversified		Science &		Templeton		Equity
shares	Equity Fund		Equity Fund		Technology		Global		(Pro Forma)
Class A
Year 1		N/A		N/A	$	697	$	699	$	696
Year 3		N/A		N/A	$	1,082	$	1,060	$	1,042
Year 5		N/A		N/A	$	1,492	$	1,445	$	1,410
Year 10		N/A		N/A	$	2,631	$	2,521	$	2,443
Class B*
Year 1		N/A		N/A	$	721	$	723	$	720
Year 3		N/A		N/A	$	1,116	$	1,073	$	1,059
Year 5		N/A		N/A	$	1,536	$	1,449	$	1,426
Year 10		N/A		N/A	$	2,890	$	2,714	$	2,658
Class C
Year 1		N/A		N/A	$	321	$	323	$	320
Year 3		N/A		N/A	$	758	$	725	$	708
Year 5		N/A		N/A	$	1,322	$	1,254	$	1,223
Year 10		N/A		N/A	$	2,858	$	2,703	$	2,635
Investor Class / Class P
Year 1	$	117		N/A		N/A		N/A	$	117
Year 3	$	402		N/A		N/A		N/A	$	404
Year 5	$	707		N/A		N/A		N/A	$	712
Year 10	$	1,575		N/A		N/A		N/A	$	1,586
Institutional Class / Class I
Year 1		N/A	$	77	$	100		N/A	$	84
Year 3		N/A	$	2,066	$	312		N/A	$	262
Year 5		N/A	$	3,859	$	542		N/A	$	455
Year 10		N/A	$	7,610	$	1,201		N/A	$	1,014

52

If the shares are not redeemed:

					Combined
	Transamerica				Transamerica
Number of years	Science &		Transamerica		Diversified Equity
you own your shares	Technology		Templeton Global		(Pro Forma)
Class B*
Year 1	$	221	$	223	$	220
Year 3	$	816	$	773	$	759
Year 5	$	1,436	$	1,349	$	1,326
Year 10	$	2,890	$	2,714	$	2,658
Class C
Year 1	$	221	$	223	$	220
Year 3	$	758	$	725	$	708
Year 5	$	1,322	$	1,254	$	1,223
Year 10	$	2,858	$	2,703	$	2,635

* Examples for Class B shares assume conversion to Class A shares 8 years after purchase.

REASONS FOR THE PROPOSED REORGANIZATIONS

          The Board of each Target Fund, including its Independent Directors, have unanimously determined that each proposed Reorganization would be in the best interests of each Target Fund and would not dilute the interests of the existing shareholders of each Target Fund. The Board of the Destination Fund, including the Independent Trustees, have unanimously determined that each Reorganization would be in the best interests of the Destination Fund and would not dilute the interests of the existing shareholders of the Destination Fund. Each Board believes that each proposed Reorganization will be advantageous to the shareholders of the Fund it oversees. In determining whether to approve each Reorganization, the Board Members considered the potential impact of each proposed Reorganization on the Funds’ shareholders and a variety of related factors, including, among others:

General Considerations

• The Board Members considered that each Reorganization presents an opportunity for the shareholders of the Target Fund to become investors in a combined fund that has a larger asset size without the obligation to pay commissions or other transaction costs that a fund normally incurs when purchasing securities. The Board Members considered TAM’s belief that this opportunity may give the combined Destination Fund the ability to diversify further its holdings and effect larger portfolio trading transactions, for the benefit of shareholders. The Board Members considered that the Reorganization could, with regard to the Transamerica Premier Diversified Equity Fund and the Transamerica Premier Institutional Diversified Equity Fund, eliminate confusion in the marketplace caused by having multiple funds with similar investment mandates, and with regard to all the Funds, enhance the potential for the combined Destination Fund to achieve growth in assets. The Board Members noted that TAM believes that the Transamerica Science & Technology and Transamerica Templeton Global funds are dated in style and failing to attract assets. The Board Members noted that TAM believes that the combined Destination Fund may be better positioned to attract assets than each Target Fund, and that the larger size of the combined Destination Fund may offer the potential for greater economies of scale by enabling the combined Destination Fund to obtain better net prices on securities trades and by reducing per share expenses as fixed expenses are shared over a larger asset base.

• The Board Members considered that the Reorganization could eliminate certain redundancies and inefficiencies in the Transamerica fund complex product line offerings, which could strengthen TAM’s ability to pursue investment and marketing opportunities on behalf of the Transamerica funds. The Board Members also considered that the Reorganization is one of a number of reorganizations and other initiatives recently approved by the Board Members of the Transamerica funds. The Board Members noted that the initiatives are designed to streamline the Transamerica fund complex, to promote operating efficiencies, and to result in a more cohesive fund platform.

Fees and Expenses

• The Board Members considered that the pro forma gross expense ratio of each class of shares of the combined Destination Fund is expected to be lower than the historical gross expense ratios of the corresponding class of shares of each Target Fund.

• The Board Members considered that, for each Target Fund except for the Transamerica Premier Institutional Diversified Equity, TAM has contractually undertaken to waive fees and/or reimburse expenses on behalf of the Destination Fund to the extent that the total expenses of corresponding classes of the Destination Fund exceed certain operating levels.

• The Board Members considered that, given the anticipated costs and benefits of the Reorganization, the expenses associated with the preparation, printing and mailing of any

53

shareholder communications, including this Information Statement/Prospectus, and any regulatory filings in connection with the Reorganization, would be shared by TAM, and, subject to certain limits, the Target Funds and the Destination Fund.

Investment Performance

•

The Board Members noted that, as a newly-organized fund, the Destination Fund did not have any performance history against which to evaluate the Target Funds’ performance. However, the Board Members considered the performance of Transamerica Premier Diversified Equity Fund, a fund with an investment objective and principal investment strategies and policies substantially similar to the Destination Fund and that was managed by the same portfolio managers who will manage the Destination Fund. The Board Members considered that the performance of the Funds was generally comparable over the 1- and 3-year periods ended February 28, 2009. The Board Members noted that the Transamerica Premier Diversified Equity Fund’s performance was higher than Transamerica Science & Technology’s for the 5- and 10-year periods ended February 28, 2009 and higher than Transamerica Templeton Global’s for the 10-year period ended February 28, 2009.

Tax

• The Board Members considered the expected tax-free nature of the Reorganization for U.S. federal income tax purposes.

Investment Program

• The Board Members considered the investment objective and policies of the Destination Fund and their compatibility with those of each Target Fund.

• The Board Members considered that TAM is the adviser to each Target Fund and the Destination Fund.

Other Considerations

• The Board Members considered the terms and conditions of the Agreement and Plan of Reorganization.

• The Board Members considered that the portfolio managers of the combined Destination Fund may conclude that a significant number of holdings of the Target Funds may not be consistent with the combined Destination Fund’s long-term investment strategy, and may dispose of such positions, but that TAM represented that portfolio transition should not have a material adverse effect on the Funds and their shareholders.

54

          For the reasons described above, the Board of each Target Fund, including the Independent Target Board Members, approved the Reorganization of that Target Fund. In particular, the Target Board Members have concluded that participation in the Reorganization is in the best interests of each Target Fund and that the interests of the Target Funds’ existing shareholders would not be diluted as a result of the Reorganization. Similarly, the Board of Trustees of the Destination Fund, including the Independent Destination Trustees, approved each Reorganization. They also determined that each Reorganization is in the best interests of the Destination Fund and that the interests of the Destination Fund’s shareholders would not be diluted as a result of the Reorganization.

CAPITALIZATION

          The following tables set forth the capitalization of each Target Fund and the Destination Fund as of August 7, 2009 and the pro forma combined capitalization of the combined Destination Fund as if the Reorganization had occurred on that date. If the Reorganization is consummated, the actual exchange ratios on the Closing Date may vary from the exchange ratios used in the computation below. This is due to changes in the market value of the portfolio securities of the Funds between August 7, 2009 and the Closing Date, changes in the amount of undistributed net investment income and net realized capital gains of the Funds during that period resulting from income and distributions, and changes in the accrued liabilities of the Funds during the same period.

55

Assuming only the Transamerica Premier Diversified Equity Fund Reorganization:

						Transamerica
	Transamerica					Diversified			Pro Forma
	Premier		Transamerica			EquityPro			Transamerica
	Diversified		Diversified			Forma			Diversified
	Equity Fund		Equity(1)			Adjustments			Equity
Net Assets (000’s)
Class A		—		—					—
Class B		—		—					—
Class C		—		—					—
Class P		—		—	$	249,714		$	249,714
Class I		—		—					—
Investor Class(2)	$	249,714		—	$	(249,714	)		—
Net Asset Value Per Share
Class A		—		—					—
Class B		—		—					—
Class C		—		—					—
Class P		—		—	$	11.92		$	11.92
Class I		—		—					—
Investor Class(2)	$	11.92		—	$	(11.92	)		—
Shares Outstanding (000’s)
Class A		—		—					—
Class B		—		—					—
Class C		—		—					—
Class P		—		—		20,946			20,946
Class I		—		—					—
Investor Class(2)		20,946		—		(20,946	)		—

(1)	Transamerica Diversified Equity is a newly-created series of Transamerica Funds that will commence operations on the Closing Date.
(2)	Investor Class shares of Transamerica Premier Diversified Equity Fund will receive Class P shares of the Destination Fund following the Reorganization.

Assuming only the Transamerica Premier Institutional Diversified Equity Fund Reorganization:

	Transamerica					Transamerica
	Premier					Diversified			Pro Forma
	Institutional		Transamerica			EquityPro			Transamerica
	Diversified		Diversified			Forma			Diversified
	Equity Fund		Equity(1)			Adjustments			Equity
Net Assets (000’s)
Class A		—		—					—
Class B		—		—					—
Class C		—		—					—
Class I		—		—	$	1,969		$	1,969
Institutional Class(2)	$	1,969		—	$	(1,969	)		—
Net Asset Value Per Share
Class A		—		—					—
Class B		—		—					—
Class C		—		—					—
Class I		—		—	$	9.11		$	9.11
Institutional Class(2)	$	9.11		—	$	(9.11	)		—

56

	Transamerica				Transamerica
	Premier				Diversified		Pro Forma
	Institutional		Transamerica		EquityPro		Transamerica
	Diversified		Diversified		Forma		Diversified
	Equity Fund		Equity(1)		Adjustments		Equity
Shares Outstanding (000’s)
Class A		—		—			—
Class B		—		—			—
Class C		—		—			—
Class I		—		—	216		216
Institutional Class(2)		216		—	(216	)	—

(1)	Transamerica Diversified Equity is a newly-created series of Transamerica Funds that will commence operations on the Closing Date.
(2)	Institutional Class shares of Transamerica Premier Institutional Diversified Equity Fund will receive Class I shares of the Destination Fund following the Reorganization.

Assuming only the Transamerica Science & Technology Reorganization:

					Transamerica
					Diversified		Pro Forma
	Transamerica		Transamerica		EquityPro		Transamerica
	Science &		Diversified		Forma		Diversified
	Technology		Equity(1)		Adjustments		Equity
Net Assets (000’s)
Class A	$	5,228		—		$	5,228
Class B	$	1,608		—		$	1,608
Class C	$	1,550		—		$	1,550
Class I	$	54,758		—		$	54,758
Net Asset Value Per Share
Class A	$	3.45		—		$	3.45
Class B	$	3.25		—		$	3.25
Class C	$	3.24		—		$	3.24
Class I	$	3.53		—		$	3.53
Shares Outstanding (000’s)
Class A		1,514		—			1,514
Class B		495		—			495
Class C		478		—			478
Class I		15,494		—			15,494

⁽¹⁾ Transamerica Diversified Equity is a newly-created series of Transamerica Funds that will commence operations on the Closing Date.

Assuming only the Transamerica Templeton Global Reorganization:

				Transamerica
				Diversified	Pro Forma
	Transamerica		Transamerica	EquityPro	Transamerica
	Templeton		Diversified	Forma	Diversified
	Global		Equity(1)	Adjustments	Equity
Net Assets (000’s)
Class A	$	14,210	—		$	14,210
Class B	$	8,606	—		$	8,606
Class C	$	77,224	—		$	77,224
Net Asset Value Per Share
Class A	$	20.88	—		$	20.88

57

				Transamerica
				Diversified	Pro Forma
	Transamerica		Transamerica	EquityPro	Transamerica
	Templeton		Diversified	Forma	Diversified
	Global		Equity(1)	Adjustments	Equity
Class B	$	21.03	—		$	21.03
Class C	$	22.34	—		$	22.34
Shares Outstanding (000’s)
Class A		680	—			680
Class B		409	—			409
Class C		3,456	—			3,456

⁽¹⁾ Transamerica Diversified Equity is a newly-created series of Transamerica Funds that will commence operations on the Closing Date

Assuming all Group 2 Reorganizations:

			Transamerica								Transamerica
	Transamerica		Premier								Diversified			Pro Forma
	Premier		Institutional		Transamerica		Transamerica		Transamerica		EquityPro			Transamerica
	Diversified		Diversified		Science &		Templeton		Diversified		Forma			Diversified
	Equity Fund		Equity Fund		Technology		Global		Equity(1)		Adjustments			Equity
Net Assets (000’s)
Class A		—		—	$	5,228	$	14,210		—				$	19,438
Class B		—		—	$	1,608	$	8,606		—				$	10,214
Class C		—		—	$	1,550	$	77,224		—				$	78,774
Class P / Investor Class(2)	$	249,714		—		—		—		—				$	249,714
Class I / Institutional Class(3)		—	$	1,969	$	54,758		—		—				$	56,727
Net Asset Value Per Share
Class A		—		—	$	3.45	$	20.88		—	$	(12.41	)	$	11.92
Class B		—		—	$	3.25	$	21.03		—	$	(12.36	)	$	11.92
Class C		—		—	$	3.24	$	22.34		—	$	(13.66	)	$	11.92
Class P / Investor Class(2)	$	11.92		—		—		—		—				$	11.92
Class I / Institutional Class(3)		—	$	9.11	$	3.53		—		—	$	(0.72	)	$	11.92
Shares Outstanding (000’s)
Class A		—		—		1,514		680		—		(564	)		1,630
Class B		—		—		495		409		—		(48	)		857
Class C		—		—		478		3,456		—		2,674			6,608
Class P / Investor Class(2)		20,946		—		—		—		—					20,946
Class I / Institutional Class(3)		—		216		15,494		—		—		(10,952	)		4,758

(1)	Transamerica Diversified Equity is a newly-created series of Transamerica Funds that will commence operations on the Closing Date.
(2)	Investor Class shares of Transamerica Premier Diversified Equity Fund will receive Class P shares of the Destination Fund following the Reorganization.
(3)	Institutional Class shares of Transamerica Premier Institutional Diversified Equity Fund will receive Class I shares of the Destination Fund following the Reorganization.

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          It is impossible to predict with any certainty how many shares of the Destination Fund will actually be received and distributed by your Target Fund on the Closing Date. The foregoing table should not be relied upon to determine the amount of Destination Fund shares that will actually be received and distributed.

ADDITIONAL INFORMATION

          For information relating to each Fund and its Reorganization, including tax capital loss carryforwards, the tax status of the Reorganization, a comparison of the fundamental investment policies of the Funds, how to buy, sell or exchange Fund shares, how each Fund values its securities, financial highlights information for each Fund and ownership of shares of the Funds, please see the sections immediately following the discussion of the Group 6 Reorganization.

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GROUP 3 REORGANIZATIONS

TRANSAMERICA PREMIER EQUITY FUND
TRANSAMERICA PREMIER INSTITUTIONAL EQUITY FUND
(each, a “Target Fund” and together, the “Target Funds”)

AND

TRANSAMERICA EQUITY
(the “Destination Fund”)

SUMMARY

          The following is a summary of more complete information appearing later in this Information Statement/Prospectus or incorporated herein. You should read carefully the entire Information Statement/Prospectus, including the form of Agreement and Plan of Reorganization attached as Exhibit A and the Portfolio Management Discussion attached as Exhibit B, because they contain details that are not in the summary.

          In each Reorganization, the Target Fund will be reorganized into the Destination Fund, with each Target Fund receiving shares of the Destination Fund as shown in the following table:

Target Fund & Shares	Destination Fund & Shares
Transamerica Premier Equity Fund	Transamerica Equity
Investor Class	Class P
Transamerica Premier Institutional Equity Fund	Transamerica Equity
Institutional Class	Class I

The consummation of one Reorganization is not contingent on the consummation of the other Reorganization.

          The Target Funds and the Destination Fund are advised by Transamerica Asset Management, Inc. (“TAM”) and have similar investment objectives, principal investment strategies and policies and related risks. The tables below provide a comparison of certain features of the Funds. In the tables below, if a row extends across the entire table, the information applies to both the Destination Fund and the applicable Target Fund.

Comparison of Transamerica Premier Equity Fund and Transamerica Premier Institutional Equity Fund
to Transamerica Equity

	Transamerica Premier Equity	Transamerica Premier
	Fund	Institutional Equity Fund	Transamerica Equity
Investment Objective	The Fund seeks to maximize long-term growth.		The objective of the Fund is to maximize long-term growth.
Principal Investment Strategies and Policies	The Fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), uses a “bottom-up” approach to investing and builds the Fund’s portfolio one company at a time by investing Fund assets principally in equity securities. When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors. TIM generally invests at least 80% of the Fund’s net assets in a diversified portfolio of domestic common stocks. TIM believes in long-term investing and does not attempt to time the market. TIM employs a rigorous research approach and buys securities of companies it believes have the defining features of premier growth companies that are undervalued in the stock market. Premier companies, in the opinion of TIM, have many of all of		TIM uses a “bottom-up” approach to investing and builds the Fund’s portfolio one company at a time by investing Fund assets principally in equity securities. TIM generally invests at least 80% of the Fund’s net assets in a diversified portfolio of domestic common stocks. TIM believes in long-term investing and does not attempt to time the market. TIM employs a rigorous research approach and buys securities of companies it believes have the defining

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	Transamerica Premier Equity	Transamerica Premier
	Fund	Institutional Equity Fund	Transamerica Equity
	the following features: •   shareholder-oriented management •   dominance in market share •   cost production advantages •   leading brands •   self-financed growth •   attractive reinvestment opportunities While TIM invests principally in domestic common stocks, the Fund may, to a lesser extent, invest in other securities or use other investment strategies in pursuit of its investment objective. Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options and swaps, and also in foreign securities. The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.		features of premier growth companies that are undervalued in the stock market. Premier companies, in the opinion of TIM, have many or all of the following features: •   shareholder-oriented management •   dominance in market share •   cost production advantages •   leading brands •   self-financed growth •   attractive reinvestment opportunities While TIM invests principally in domestic common stocks, the Fund may, to a lesser extent, invest in other securities or use other investment strategies in pursuit of its investment objective. The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.
Investment Adviser	TAM
Sub-Adviser	TIM
Portfolio Managers	Gary U. Rollé, CFA Portfolio Manager (lead) Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.
	Edward S. Han Portfolio Manager (co) Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

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Transamerica Premier Equity	Transamerica Premier
Fund	Institutional Equity Fund	Transamerica Equity
John J. Huber, CFA Portfolio Manager (co) John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience.
Peter O. Lopez Portfolio Manager (co) Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

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	Transamerica Premier Equity	Transamerica Premier
	Fund	Institutional Equity Fund	Transamerica Equity
	Erik U. Rollé Portfolio Manager (co) Erik U. Rollé is a Securities Analyst and Co-Portfolio Manager at TIM. He co-manages sub-advised funds and institutional separate accounts in the Growth Equity discipline. Prior to joining TIM in 2005, Mr. Rollé worked as a Research Associate at Bradford & Marzec where his primary responsibilities were within trading and credit research. He received a B.S. in Finance and a B.S. in Journalism from the University of Colorado at Boulder. Mr. Rollé has 6 years of investment experience.
	Each Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.
Business	A diversified open-end investment management company organized as a series of Transamerica Premier Funds, a Maryland corporation.		A diversified open-end investment management company organized as a series of Transamerica Funds, a Delaware statutory trust.
Net Assets (as of June 30, 2009)	$443,532,579	$75,225,316	$909,803,105

Classes of Shares, Fees and Expenses

		Transamerica Premier
	Transamerica Premier Equity Fund	Institutional Equity Fund	Transamerica Equity
Sales Charges and Fees	Investor Class shares are offered without an initial sales charge. Investor Class shares are not subject to a contingent deferred sales charge. Investor Class shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.25% of the average daily net assets of the Fund. The fee accrues daily and is based on an annual percentage of the daily average net assets.	Institutional Class shares are offered without an initial sales charge. Institutional Class shares are not subject to a contingent deferred sales charge. Institutional Class shares are not subject to distribution and service (12b-1) fees.	Class P shares are offered without an initial sales charge. Class P shares are available only to former investors in Investor Class shares of Transamerica Premier Funds. Class P shares are not subject to a contingent deferred sales charge. Class P shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.25% of the average daily net assets of the Fund. The fee accrues daily and is based on an

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	Transamerica Premier
Transamerica Premier Equity Fund	Institutional Equity Fund	Transamerica Equity
		annual percentage of the daily average net assets. Class I shares are offered without an initial sales charge. Class I shares are not subject to a contingent deferred sales charge. Class I shares are not subject to distribution and service (12b-1) fees.

Advisory Fees	TAM is entitled to receive an advisory fee based on an annual rate of the Fund’s average daily net assets: •   0.85% for the first $1 billion; •   0.82% of the next $1 billion; and	TAM is entitled to receive an advisory fee based on an annual rate of 0.73% of the Fund’s average daily net assets. The advisory fee is accrued daily and paid monthly.	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets): •   0.73% for the first $500 million of assets;
	•   0.80% of assets in excess of $2 billion. For the fiscal year ended December 31, 2008, the Fund paid advisory fees of 0.67% of the Fund’s average daily net assets.	For the fiscal year ended December 31, 2008, the Fund paid advisory fees of 0.63% of the Fund’s average daily net assets.	•   0.70% for assets over $500 million and up to $2.5 billion; and •   0.65% for assets over $2.5 billion.* For the fiscal year ended October 31, 2008, the Fund paid advisory fees of 0.72% of the Fund’s average daily net assets.

Fee Waivers and Expense Limitations Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2011, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.15%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.15% (other than interest, taxes, brokerage commissions and extraordinary expenses). Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 0.75%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 0.75% (other than interest, taxes, brokerage commissions and extraordinary expenses). TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Fund to the extent that the total expenses of Class I exceed 1.17% (excluding 12b-1 fees (if any) and extraordinary expenses). TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.17%, excluding 12b-1 fees and extraordinary expenses. The Fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008. There can be no assurance that TAM will extend its contractual obligations beyond March 1, 2011.

TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.15% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the

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		Fund through March 1, 2011.
Gross and Net Expenses	For a comparison of the gross and net expenses of the Funds, please see the class fee tables in the “The Funds’ Fees and Expenses” section.

* The fee structure shown is the revised fee structure that will be implemented at the time of the Reorganization. The current fee structure is 0.75% for the first $500 million of assets; otherwise, there is no difference between the current and revised fee structures.

Comparison of Principal Risks of Investing in the Funds

          Because the Funds have similar investment objectives and principal investment strategies and policies, they are subject to similar principal risks. Risk is inherent in all investing. The value of your investment in a Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in a Fund or your investment may not perform as well as other similar investments.

          Each Fund is subject to the following principal risks:

• Market. The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

• Stocks. Stocks may be volatile — their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

• Fixed-Income Securities. The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

- market risk: fluctuations in market value

- interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

- prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

- extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

- default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

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	If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.
•	Derivatives. The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.
•	Growth Stocks. Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.
•	Small- or Medium-Sized Companies. Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for their greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.
•	Foreign Securities. Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

- changes in currency values

- currency speculation

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- currency trading costs

- different accounting and reporting practices

- less information available to the public

- less (or different) regulation of securities markets

- more complex business negotiations

- less liquidity

- more fluctuations in prices

- delays in settling foreign securities transactions

- higher costs for holding shares (custodial fees)

- higher transaction costs

- vulnerability to seizure and taxes

- political instability and small markets

- different market trading days

• Currency. When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

• Focused Investing. To the extent the fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

The Funds’ Past Performance

          The bar charts and tables below provide some indication of the risks of investing in each Fund by showing you how the performance of the Investor Class of Transamerica Premier Equity Fund, the Institutional Class of Transamerica Premier Institutional Equity Fund, Class A of Transamerica Equity and Class I of Transamerica Equity has varied from year to year for 10 years or since inception, as applicable, and how the average total returns of each Fund’s applicable class of shares for different periods compare to the returns of one or more broad measures of market performance. Absent any applicable limitation of or cap on the Funds’ expenses, performance would have been lower. No performance information is presented for the Destination Fund’s Class P shares because Class P shares are newly offered. The Class P shares of Transamerica Equity will have different performance from that shown in the bar charts below because they will have different expenses than that of the share classes shown. A Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.

          Each Fund makes updated information available (available at no charge by calling the Funds’ toll-free number, [1-800-851-9777], or by visiting the Funds’ website at www.transamericafunds.com (select “Transamerica Premier Funds” for the Target Funds and “Transamerica Funds” for the Destination Fund)).

Transamerica Premier Equity Fund Annual Returns — Investor Class Shares
(per year ended 12/31)

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          The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	29.80	%	Quarter ended:	12/31/1999
Lowest:	(23.94	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar, which ended 6/30/2009, was 7.77%.

Transamerica Premier Equity Fund Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

Transamerica Premier Equity Fund	1 Year			5 Years			Life of Fund
Investor Class — Return before Taxes		(44.74	)%		(1.78	)%		(1.56	)%
Investor Class — Return after taxes on distributions(2)		(44.88	)%		(2.09	)%		(2.27	)%
Investor Class — Return after taxes on distributions and sale of fund shares(2)		(28.89	)%		(1.38	)%		(1.24	)%
Russell 1000® Growth Index(3)		(38.44	)%		(3.42	)%		(4.27	)%
S&P 500 Index(4)		(37.00	)%		(2.19	)%		(1.38	)%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.
(2)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(3)	The Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.
(4)	The S&P 500 Index consists of 500 widely held, publicly traded common stocks. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Transamerica Premier Institutional Equity Fund Annual Returns — Institutional Class Shares
(per year ended 12/31)

          The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	10.69	%	Quarter ended:	9/30/2005
Lowest:	(23.58	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 8.32%.

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Transamerica Premier Institutional Equity Fund Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

				Life of
Transamerica Premier Institutional Equity Fund	1 Year			Fund(2)
Institutional Class — Return before Taxes		(43.92	)%		(2.02	)%
Institutional Class — Return after taxes on distributions(3)		(44.02	)%		(3.19	)%
Institutional Class — Return after taxes on distributions and sale of fund shares(3)		(28.41	)%		(2.04	)%
Russell 1000® Growth Index(4)		(38.44	)%		(4.03	)%
S&P 500 Index(4)		(37.00	)%		(2.69	)%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.
(2)	Transamerica Premier Institutional Equity Fund commenced operations on June 1, 2004.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(4)	The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Transamerica Equity Annual Returns — Class A Shares
(per year ended 12/31)

          The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	12.85	%	Quarter ended:	12/31/2001
Lowest:	(24.04	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 7.75%.

Transamerica Equity Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

							Life of
Transamerica Equity	1 Year			5 Years			Fund(2)
Class A — Return before Taxes		(48.45	)%		(3.18	)%		(5.40	)%
Class A — Return after taxes on distributions(3)		(48.45	)%		(3.25	)%		(5.44	)%
Class A — Return after taxes on distributions and sale of fund shares(3)		(31.49	)%		(2.66	)%		(4.42	)%
Russell 1000® Growth Index(4)		(38.44	)%		(3.42	)%		(7.85	)%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.
(2)	Class A commenced operations on March 1, 2000.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

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⁽⁴⁾ The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Transamerica Equity Annual Returns — Class I Shares
(per year ended 12/31)

          The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	7.15	%	Quarter ended:	9/30/2007
Lowest:	(23.92	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 8.11%.

Transamerica Equity Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

				Life of
Transamerica Equity	1 Year			Fund(2)
Class I — Return before Taxes		(45.09	)%		(10.40	)%
Class I — Return after taxes on distributions(3)		(45.22	)%		(10.50	)%
Class I — Return after taxes on distributions and sale of fund shares(3)		(29.31	)%		(8.70	)%
Russell 1000® Growth Index(4)		(38.44	)%		(8.38	)%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.
(2)	Class I commenced operations on November 15, 2005.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(4)	The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

          The portfolio management discussion of each Fund’s performance for its last fiscal year is attached as Exhibit B.

The Funds’ Fees and Expenses

          Shareholders of the Target Funds and the Destination Fund pay various fees and expenses, either directly or indirectly. The tables below show the fees and expenses that you would pay if you were to buy and hold shares of each Fund. The fees and expenses in the tables appearing below are based on the expenses of the Funds for the twelve-month period ended April 30, 2009. The tables also show the pro forma expenses of the combined Destination Fund after giving effect both to each Reorganization and to all Group 3 Reorganizations based on pro forma net assets as of April 30, 2009. Pro forma numbers are estimated in good faith and are hypothetical. Actual expenses may vary significantly.

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Assuming only the Transamerica Premier Equity Fund Reorganization:

	Transamerica
	Premier					Transamerica
	Equity Fund			Transamerica		Equity
				Equity		(Pro Forma)
	Investor Class			Class P(a)		Class P
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A			N/A		N/A
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)
Management Fees		0.82	%		N/A		0.71	%
Rule 12b-1 Fees		0.25	%		N/A		0.25	%
Other Expenses		0.26	%		N/A		0.25	%
Total		1.33	%		N/A		1.21	%
Expense Reduction		0.18	%(c)		N/A		0.06	%(d)
Net Operating Expenses		1.15	%		N/A		1.15	%

(a)	Because Class P of Transamerica Equity is a new share class, no fee and expense information is available for the twelve-month period ended April 30, 2009.
(b)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(c)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.15%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.15% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(d)	TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.15% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.

Assuming only the Transamerica Premier Institutional Fund Equity Fund Reorganization:

	Transamerica
	Premier
	Institutional						Transamerica
	Equity Fund			Transamerica			Equity
	Institutional			Equity			(Pro Forma)
	Class			Class I			Class I
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A			N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A			N/A			N/A
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(a)
Management Fees		0.73	%		0.72	%		0.71	%
Rule 12b-1 Fees		0.00	%		0.00	%		0.00	%
Other Expenses		0.14	%		0.06	%		0.06	%
Total		0.87	%		0.78	%		0.77	%
Expense Reduction		0.12	%(b)		0.00			0.00	%(c)
Net Operating Expenses		0.75	%		0.78	%		0.77	%

(a)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(b)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 0.75%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 0.75% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(c)	TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Fund to the extent that the total expenses of Class I exceed 1.17% (excluding 12b-1 fees (if any) and extraordinary expenses). TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.17%, excluding 12b-1 fees and extraordinary expenses. The Fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008. There can be no assurance that TAM will extend its contractual obligations beyond March 1, 2011.

Assuming both Group 3 Reorganizations:

									Transamerica
									Premier						Combined
	Transamerica					Transamerica			Institutional						Transamerica
	Premier			Transamerica		Equity			Equity Fund			Transamerica			Equity
	Equity Fund			Equity		(Pro Forma)			Institutional			Equity			(Pro Forma)
	Investor Class			Class P(a)		Class P			Class			Class I			Class I
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A		N/A			N/A			N/A			N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A			N/A		N/A			N/A			N/A			N/A
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)
Management Fees		0.82	%		N/A		0.71	%		0.73	%		0.72	%		0.71	%
Rule 12b-1 Fees		0.25	%		N/A		0.25	%		0.00	%		0.00	%		0.00	%
Other Expenses		0.26	%		N/A		0.25	%		0.14	%		0.06	%		0.06	%
Total		1.33	%		N/A		1.21	%		0.87	%		0.78	%		0.77	%
Expense Reduction		0.18	%(c)		N/A		0.06	%(d)		0.12	%(e)		0.00	%		0.00	%(f)
Net Operating Expenses		1.15	%		N/A		1.15	%		0.75	%		0.78	%		0.77	%

(a)	Because Class P of Transamerica Equity is a new share class, no fee and expense information is available for the twelve-month period ended April 30, 2009.
(b)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(c)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.15%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.15% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(d)	TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.15% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.
(e)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 0.75%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 0.75% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(f)	TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Fund to the extent that the total expenses of Class I exceed 1.17% (excluding 12b-1 fees (if any) and extraordinary expenses). TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.17%, excluding 12b-1 fees and extraordinary expenses. The Fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008. There can be no assurance that TAM will extend its contractual obligations beyond March 1, 2011.

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          The hypothetical examples below help you compare the cost of investing in each Fund. Each example assumes that:

• you invest $10,000 in each Fund;

• you reinvest all dividends and distributions without a sales charge;

• you hold your shares for the time periods shown and then redeem all of your shares at the end of those periods;

• your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance); and

• each Fund’s operating expenses remain the same.

          Each example also assumes no fees for IRA accounts, if applicable. Costs are the same whether you redeem at the end of any period or not. Pro forma expenses are included assuming a Reorganization of the Funds. The examples are for comparison purposes only and do not represent the Funds’ actual expenses or returns, either past or future. Because actual return and expenses will be different, the examples are for comparison only.

Assuming only the Transamerica Premier Equity Fund Reorganization:

					Combined
	Transamerica				Transamerica
Number of years	Premier Equity		Transamerica		Equity
you own your shares	Fund		Equity		(Pro Forma)
Investor Class / Class P
Year 1	$	117		N/A	$	117
Year 3	$	404		N/A	$	378
Year 5	$	712		N/A	$	659
Year 10	$	1,586		N/A	$	1,461

Assuming only the Transamerica Premier Institutional Equity Fund Reorganization:

	Transamerica				Combined
Number of years	Premier Institutional		Transamerica		Transamerica Equity
you own your shares	Equity		Equity		(Pro Forma)
Institutional Class / Class I
Year 1	$	77	$	80	$	79
Year 3	$	266	$	249	$	246
Year 5	$	470	$	433	$	428
Year 10	$	1,061	$	966	$	954

Assuming both Group 3 Reorganizations:

							Combined
	Transamerica		Transamerica				Transamerica
Number of years	Premier Equity		Premier Institutional		Transamerica		Equity
you own your shares	Fund		Equity		Equity		(Pro Forma)
Investor Class / Class P
Year 1	$	117		N/A		N/A	$	117
Year 3	$	404		N/A		N/A	$	378
Year 5	$	712		N/A		N/A	$	659
Year 10	$	1,586		N/A		N/A	$	1,461

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							Combined
	Transamerica		Transamerica				Transamerica
Number of years	Premier Equity		Premier Institutional		Transamerica		Equity
you own your shares	Fund		Equity		Equity		(Pro Forma)
Institutional Class / Class I
Year 1		N/A	$	77	$	80	$	79
Year 3		N/A	$	266	$	249	$	246
Year 5		N/A	$	470	$	433	$	428
Year 10		N/A	$	1,061	$	966	$	954

REASONS FOR THE PROPOSED REORGANIZATIONS

          The Board of each Target Fund, including its Independent Directors, have unanimously determined that the proposed Reorganization would be in the best interests of each Target Fund and would not dilute the interests of the existing shareholders of each Target Fund. The Board of the Destination Fund, including the Independent Trustees, have unanimously determined that the Reorganization would be in the best interests of the Destination Fund and would not dilute the interests of the existing shareholders of the Destination Fund. Each Board believes that the proposed Reorganization will be advantageous to the shareholders of the Fund it oversees. In determining whether to approve the Reorganization, the Board Members considered the potential impact of the proposed Reorganization on the Funds’ shareholders and a variety of related factors, including, among others:

General Considerations

• The Board Members considered that the Reorganization presents an opportunity for the shareholders of the Target Fund to become investors in a combined fund that has a larger asset size without the obligation to pay commissions or other transaction costs that a fund normally incurs when purchasing securities. The Board Members considered TAM’s belief that this opportunity may give the combined Destination Fund the ability to diversify further its holdings and effect larger portfolio trading transactions, for the benefit of shareholders.

• The Board Members considered that the Reorganization could eliminate any confusion in the marketplace caused by having multiple funds with similar investment mandates and enhance the potential for the combined Destination Fund to achieve growth in assets. The Board Members noted that TAM believes that the combined Destination Fund may be better positioned to attract assets than the Target Fund, and that the larger size of the combined Destination Fund may offer the potential for greater economies of scale by enabling the combined Destination Fund to obtain better net prices on securities trades and by reducing per share expenses as fixed expenses are shared over a larger asset base.

•

The Board Members considered that the Reorganization could eliminate certain redundancies and inefficiencies in the Transamerica fund complex product line offerings, which could strengthen TAM’s ability to pursue investment and marketing opportunities on behalf of the Transamerica funds. The Board Members also considered that the Reorganization is one of a number of reorganizations and other initiatives recently approved by the Board Members of the Transamerica funds. The Board Members noted that the initiatives are designed to streamline the Transamerica fund complex, to promote operating efficiencies, and to result in a more cohesive fund platform.

Fees and Expenses

• For Transamerica Premier Equity Fund, the Board Members considered that the pro forma gross expense ratio of the combined Destination Fund is expected to be lower for Class P of the combined Destination Fund as compared to the corresponding class of shares of that Target Fund. Furthermore, the Board Members of Transamerica Premier Equity Fund considered that TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Destination Fund to the extent that the total expenses of Class P of the Destination Fund exceed certain operating levels.

• For Transamerica Premier Institutional Equity Fund, the Board Members considered that the pro forma gross expense ratio of the combined Destination Fund is expected to be lower for Class I as compared to the corresponding class of shares of that Target Fund. Furthermore, the Board Members of Transamerica Premier Institutional Equity Fund considered that TAM has contractually undertaken through March 1, 2010 to waive fees and/or reimburse expenses on

73

behalf of the Destination Fund to the extent that the total expenses of Class I of the Destination Fund exceed certain operating levels.

• The Board Members considered that TAM agreed to lower its advisory fee for the Destination Fund.

• The Board Members considered that, given the anticipated costs and benefits of the Reorganization, the expenses associated with the preparation, printing and mailing of any shareholder communications, including this Information Statement/Prospectus, and any regulatory filings in connection with the Reorganization, would be shared by TAM, and, subject to certain limits, the Target Funds and the Destination Fund.

Investment Performance

•

The Board Members noted that the performance of the Funds was generally comparable for the 1- and 3-year periods ended February 28, 2009. For Transamerica Premier Equity Fund, the Board Members noted that the Destination Fund’s performance was higher than the performance of that Target Fund for the 3-year period ended February 28, 2009. However, the Board Members also noted that the performance of Transamerica Premier Equity Fund was higher than the Destination Fund’s performance for the 1- and 5-year periods ended February 28, 2009. For Transamerica Premier Institutional Equity Fund, the Board Members noted that the performance of that Target Fund was higher than the Destination Fund’s performance for the 1- and 3-year periods ended February 28, 2009.

Tax

• The Board Members considered the expected tax-free nature of the Reorganization for U.S. federal income tax purposes.

Investment Program

• The Board Members considered the investment objective and policies of the Destination Fund and their compatibility with those of each Target Fund.

• The Board Members considered that considered TAM is the adviser and TIM is the sub-adviser to each Target Fund and the Destination Fund.

Other Considerations

• The Board Members considered the terms and conditions of the Agreement and Plan of Reorganization.

• The Board Members considered that the portfolio managers of the combined Destination Fund may conclude that a significant number of holdings of the Target Funds may not be consistent with the combined Destination Fund’s long-term investment strategy, and may dispose of such positions, but that TAM represented that portfolio transition should not have a material adverse effect on the Funds and their shareholders.

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CAPITALIZATION

          The following tables set forth the capitalization of each Target Fund and the Destination Fund as of August 7, 2009 and the pro forma combined capitalization of the combined Destination Fund as if the Reorganization had occurred on that date. If the Reorganization is consummated, the actual exchange ratios on the Closing Date may vary from the exchange ratios used in the computation below. This is due to changes in the market value of the portfolio securities of the Funds between August 7, 2009 and the Closing Date, changes in the amount of undistributed net investment income and net realized capital gains of the Funds during that period resulting from income and distributions, and changes in the accrued liabilities of the Funds during the same period.

Assuming only the Reorganization of Transamerica Premier Equity Fund:

	Transamerica				Transamerica Equity			Pro Forma
	Premier Equity		Transamerica		Pro Forma			Transamerica
	Fund		Equity		Adjustments			Equity
Net Assets (000’s)
Class A		—	$	296,989				$	296,989
Class B		—	$	42,854				$	42,854
Class C		—	$	39,597				$	39,597
Class P		—		—	$	452,542		$	452,542
Class I		—	$	509,125				$	509,125
Class T		—	$	87,675				$	87,675
Investor Class(1)	$	452,542		—	$	(452,542	)		—
Net Asset Value Per Share
Class A		—	$	7.37				$	7.37
Class B		—	$	6.86				$	6.86
Class C		—	$	6.89				$	6.89
Class P		—		—	$	16.23		$	16.23
Class I		—	$	7.51				$	7.51
Class T		—	$	20.66				$	20.66
Investor Class(1)	$	16.23		—	$	(16.23	)		—
Shares Outstanding (000’s)
Class A		—		40,296					40,296
Class B		—		6,244					6,244
Class C		—		5,744					5,744
Class P		—		—		27,880			27,880
Class I		—		67,807					67,807
Class T		—		4,244					4,244
Investor Class(1)		27,880		—		(27,880	)		—

⁽¹⁾ Investor Class shares of Transamerica Premier Equity Fund will receive Class P shares of the Destination Fund following the Reorganization.

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Assuming only the Reorganization of Transamerica Premier Institutional Equity Fund:

	Transamerica
	Premier				Transamerica Equity			Pro Forma
	Institutional		Transamerica		Pro Forma			Transamerica
	Equity Fund		Equity		Adjustments			Equity
Net Assets (000’s)
Class A		—	$	296,989				$	296,989
Class B		—	$	42,854				$	42,854
Class C		—	$	39,597				$	39,597
Class I		—	$	509,125	$	83,256		$	592,381
Class T		—	$	87,675				$	87,675
Institutional Class(1)	$	83,256		—	$	(83,256	)		—
Net Asset Value Per Share
Class A		—	$	7.37				$	7.37
Class B		—	$	6.86				$	6.86
Class C		—	$	6.89				$	6.89
Class I		—	$	7.51				$	7.51
Class T		—	$	20.66				$	20.66
Institutional Class(1)	$	8.71		—	$	(8.71	)		—
Shares Outstanding (000’s)
Class A		—		40,296					40,296
Class B		—		6,244					6,244
Class C		—		5,744					5,744
Class I		—		67,807		11,088			78,895
Class T		—		4,244					4,244
Institutional Class(1)		9,555		—		(9,555	)		—

⁽¹⁾ Investor Class shares of Transamerica Premier Equity Fund will receive Class P shares of the Destination Fund following the Reorganization.

Assuming both Group 3 Reorganizations:

			Transamerica
	Transamerica		Premier				Transamerica	Pro Forma
	Premier Equity		Institutional		Transamerica		Equity Pro Forma	Transamerica
	Fund		Equity Fund		Equity		Adjustments	Equity
Net Assets (000’s)
Class A		—		—	$	296,989		$	296,989
Class B		—		—	$	42,854		$	42,854
Class C		—		—	$	39,597		$	39,597
Class P / Investor Class(1)	$	452,542		—		—		$	452,542
Class T		—		—	$	87,675		$	87,675
Class I / Institutional Class(2)		—	$	83,256	$	509,125		$	592,381

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			Transamerica
	Transamerica		Premier				Transamerica			Pro Forma
	Premier Equity		Institutional		Transamerica		Equity Pro Forma			Transamerica
	Fund		Equity Fund		Equity		Adjustments			Equity
Net Asset Value Per Share
Class A		—		—	$	7.37				$	7.37
Class B		—		—	$	6.86				$	6.86
Class C		—		—	$	6.89				$	6.89
Class P / Investor Class(1)	$	16.23		—		—				$	16.23
Class T		—		—	$	20.66				$	20.66
Class I / Institutional Class(2)		—	$	8.71	$	7.51	$	(8.71	)	$	7.51
Shares Outstanding (000’s)
Class A		—		—		40,296					40,296
Class B		—		—		6,244					6,244
Class C		—		—		5,744					5,744
Class P / Investor Class(1)		27,880		—		—					27,880
Class T		—		—		4,244					4,244
Class I / Institutional Class(2)		—		9,555		67,807		1,533			78,895

(1)	Investor Class shares of Transamerica Premier Equity Fund will receive Class P shares of the Destination Fund following the Reorganization.
(2)	Institutional Class shares of Transamerica Premier Institutional Equity Fund will receive Class I shares of the Destination Fund following the Reorganization.

          It is impossible to predict with any certainty how many shares of the Destination Fund will actually be received and distributed by your Target Fund on the Closing Date. The foregoing table should not be relied upon to determine the amount of Destination Fund shares that will actually be received and distributed.

ADDITIONAL INFORMATION

          For information relating to each Fund and its Reorganization, including tax capital loss carryforwards, the tax status of the Reorganization, a comparison of the fundamental investment policies of the Funds, how to buy, sell or exchange Fund shares, how each Fund values its securities, financial highlights information for each Fund and ownership of shares of the Funds, please see the sections immediately following the discussion of the Group 6 Reorganization.

77

GROUP 4 REORGANIZATION

TRANSAMERICA PREMIER FOCUS FUND
(the “Target Fund”)

AND

TRANSAMERICA LEGG MASON PARTNERS ALL CAP
(the “Destination Fund”)

SUMMARY

          The following is a summary of more complete information appearing later in this Information Statement/Prospectus or incorporated herein. You should read carefully the entire Information Statement/Prospectus, including the form of Agreement and Plan of Reorganization attached as Exhibit A and the Portfolio Management Discussion attached as Exhibit B, because they contain details that are not in the summary.

          In the Reorganization, the Target Fund will be reorganized into the Destination Fund. The Destination Fund will issue Class P shares to the Target Fund in an amount equal to the aggregate net asset value of the Target Fund’s Investor Class shares.

          Transamerica Legg Mason Partners All Cap, the Destination Fund, will be renamed Transamerica Focus in connection with the Reorganization and will change its investment objective, strategies and policies and principal risks to mirror those of the Target Fund. In addition, it is being proposed that the sub-adviser for the Destination Fund will change from ClearBridge Advisors, LLC (“ClearBridge”) to Transamerica Investment Management, LLC (“TIM”). Shareholders of the Destination Fund will receive separate proxy materials seeking their approval of the proposed change in sub-adviser.

          The Target Fund and the Destination Fund are advised by Transamerica Asset Management, Inc. (“TAM”) and will have the same investment objectives, principal investment strategies and policies and related risks. The tables below provide a comparison of certain features of the two Funds, and it assumes that the changes in the Destination Fund’s name, investment objective, principal investment strategies and policies and sub-adviser have taken place. In the tables below, if a row extends across the entire table, the information applies to both the Destination Fund and the Target Fund.

Comparison of Transamerica Premier Focus Fund to Transamerica Focus

	Transamerica Premier Focus Fund	Transamerica Focus
Investment Objective	The Fund seeks to maximize long-term growth.	The Fund seeks to maximize long-term growth.
Principal Investment Strategies and Policies	The Fund invests primarily in domestic equity securities that, in TIM’s opinion, are trading at a material discount to intrinsic value. TIM assesses intrinsic value primarily through discounted cash flow analysis, though acquisition and comparable company valuation analyses may be used to a lesser extent. The Fund generally invests in domestic equity securities of any size. The Fund may also invest up to 10% of its assets in short sale positions. The Fund is non-diversified.
	TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual companies. The portfolio is constructed one company at a time. Each company passes through a research process and stands on its own merits as a viable investment in TIM’s opinion.
	TIM’s equity management team selects U.S. companies showing:
	•      strong potential for shareholder value creation
	•      high barriers to competition
	•      solid free cash flow generating ability
	•      excellent capital allocation discipline
	•      experienced management aligned with shareholder interests

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	Transamerica Premier Focus Fund	Transamerica Focus
	TIM seeks out dominant business franchises where the long-term, value-creating potential has not fully been recognized by the market.
	Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options and swaps, and also in foreign securities. In the event TIM is unable to identify sufficient investments that meet the Fund’s criteria, the Fund may maintain a balance in cash and cash equivalents that may range up to 40% of total assets. Since the Fund may hold as much as 40% in cash or cash equivalents from time to time, it may not perform as favorably as a fund which is invested more fully.
	The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.
Investment Adviser	TAM
Sub-Adviser	TIM
Portfolio Managers	Edward S. Han Lead Portfolio Manager (co) Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.
	Kirk J. Kim Lead Portfolio Manager (co) Kirk J. Kim is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. He holds a B.S. in Finance from the University of Southern California. Mr. Kim has 13 years of investment experience.
	Joshua D. Shaskan, CFA Lead Portfolio Manager (co) Joshua D. Shaskan is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Small and Small/Mid (SMID) Growth Equity disciplines. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Shaskan served as an Investment Specialist for three years at Wells Fargo Securities and was also previously a Financial Advisor at Prudential Securities. He earned a B.A. from University of California, Davis and an M.B.A. from University California, Los Angeles. Mr. Shaskan has earned the right to use the Chartered Financial Analyst designation and has 16 years of investment experience. Each Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.
Business	A non-diversified open-end investment	A non-diversified open-end investment
	management company organized as a series of	management company organized as a series of
	Transamerica Premier Funds, a Maryland corporation.	Transamerica Funds, a Delaware statutory trust.
Net Assets (as of	$58,920,101	$64,648,783
June 30, 2009)

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Classes of Shares, Fees and Expenses

	Transamerica Premier Focus Fund	Transamerica Focus
Sales Charges and Fees	Investor Class shares are offered without an initial sales charge. Investor Class shares are not subject to a contingent deferred sales charge. Investor Class shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.25% of the average daily net assets of the Fund. The fee accrues daily and is based on an annual percentage of the daily average net assets.	Class P shares are offered without an initial sales charge. Class P shares are available only to former investors in Investor Class shares of Transamerica Premier Funds. Class P shares are not subject to a contingent deferred sales charge. Class P shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.25% of the average daily net assets of the Fund. The fee accrues daily and is based on an annual percentage of the daily average net assets.
Advisory Fees	TAM is entitled to receive an advisory fee based on an annual rate of the Fund’s average daily net assets:      •    0.85% for the first $1 billion of assets;      •    0.82% of the next $1 billion of assets; and      •    0.80% of assets in excess of $2 billion. For the fiscal year ended December 31, 2008, the Fund paid advisory fees of 0.80% of the Fund’s average daily net assets.	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets):      •    0.80% on the first $500 million of assets; and      •    0.675% on assets over $500 million.
Fee Waiver and Expense Limitations	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.40%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.40% (other than interest, taxes, brokerage commissions and extraordinary expenses).	TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.40% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.
Gross and Net Expenses	For a comparison of the gross and net expenses of the Funds, please see the class fee tables in the “The Funds’ Fees and Expenses” section.

Comparison of Principal Risks of Investing in the Funds

          Because the Funds have the same investment objectives and principal investment strategies and policies, they are subject to the same principal risks. Risk is inherent in all investing. The value of your investment in a Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to

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day and over time. You may lose part or all of your investment in a Fund or your investment may not perform as well as other similar investments.

          Each Fund is subject to the following principal risks:

•	Market. The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.
•	Stocks. Stocks may be volatile — their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down.
•	Value Investing. The value approach to investing carries the risk that the market will not recognize a security’s intrinsic value for a long time or that a stock judged to be undervalued may actually be appropriately priced. The Fund may underperform other equity funds that use different investing styles. The Fund may also underperform other equity funds using the value style.
•	Small- or Medium-Sized Companies. Investing in small and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.
•	Short Sales. A short sale may be effected by selling a security that the Fund does not own. In order to deliver the security to the purchaser, the Fund borrows the security, typically from a broker-dealer or an institutional investor. The Fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the Fund would incur a loss; conversely, if the price declines, the Fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The Fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the Fund held only long positions. The Fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.
	A short sale may also be effected “against the box” if, at all times when the short position is open, the Fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the Fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the Fund would forego the potential realization of the increased value of the shares sold short.

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• Derivatives. The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Sub-Adviser may not make use of derivatives for a variety of reasons.

• Foreign Securities. Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

- different accounting and reporting practices

- less information available to the public

- less (or different) regulation of securities markets

- more complex business negotiations

- less liquidity

- more fluctuations in prices

- delays in settling foreign securities transactions

- higher costs for holding shares (custodial fees)

- higher transaction costs

- vulnerability to seizure and taxes

- political or financial instability and small markets

- different market trading days

• Currency. When the Fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund.

• Fixed-Income Securities. The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

- market risk: fluctuations in market value

- interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the

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	value of a fixed-income security is to fluctuations in interest rates
-	prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities
-	extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes
-	default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

	If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s Sub-Adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.
•	Non-Diversification. As a non-diversified investment company, the Fund can invest a larger percentage of assets in a smaller number of individual companies than a diversified investment company. As a result, any single adverse event affecting a company within the portfolio could negatively impact the value of the Fund’s performance more than it would for a diversified investment company.
•	Focused Investing. To the extent the Fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

The Funds’ Past Performance

          The bar charts and tables below provide some indication of the risks of investing in each Fund by showing you how the performance of the Investor Class of Transamerica Premier Focus Fund and Class A of Transamerica Focus has varied from year to year for 10 years or since inception, as applicable, and how the average total returns of each Fund’s applicable class of shares for different periods compare to the returns of one or more broad measures of market performance. Absent any applicable limitation of or cap on the Funds’ expenses, performance would have been lower. No performance information is presented for the Class P shares of Transamerica Focus because Class P shares are newly offered. The Class P shares of Transamerica Focus will have different performance from that shown in the bar charts below because they will have different expenses than that of the share classes shown. A Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.

          Following the Reorganization, Transamerica Premier Focus Fund will be considered the surviving fund for performance purposes, because the Destination Fund will be managed by the same portfolio managers and will adopt the same investment objective and principal investment strategies as the Target Fund.

          Each Fund makes updated information available (available at no charge by calling the Funds’ toll-free number, [1-800-851-9777], or by visiting the Funds’ website at www.transamericafunds.com (select “Transamerica Premier Funds” for the Target Fund and “Transamerica Funds” for the Destination Fund)).

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Transamerica Premier Focus Fund Annual Returns — Investor Class Shares
(per year ended 12/31)

          The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	38.39	%	Quarter ended:	12/31/1999
Lowest:	(27.55	)%	Quarter ended:	12/31/2000

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 17.09%.

Transamerica Premier Focus Fund Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

Transamerica Premier Focus Fund	1 Year			5 Years			10 Years
Investor Class — Return before Taxes		(41.19	)%		0.06	%		(0.41	)%
Investor Class — Return after taxes on distributions(2)		(41.81	)%		(0.16	)%		(1.29	)%
Investor Class — Return after taxes on distributions and sale of fund shares(2)		(26.49	)%		(0.03	)%		(0.36	)%
S&P 500(3)		(37.00	)%		(2.19	)%		(1.38	)%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.
(2)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(3)	The S&P 500 Index consists of 500 widely held, publicly traded common stocks. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Transamerica Focus Annual Returns — Class A Shares
(per year ended 12/31)⁽¹⁾

          The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	22.99	%	Quarter ended:	6/30/2003
Lowest:	(23.77	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 5.93%.

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Transamerica Focus Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

							Life of
Transamerica Focus	1 Year			5 Years			Fund(2)
Class A — Return before Taxes		(41.33	)%		(4.78	)%		2.03	%
Class A — Return after taxes on distributions(3)		(41.47	)%		(5.59	)%		1.37	%
Class A — Return after taxes on distributions and sale of fund shares(3)		(26.67	)%		(3.66	)%		1.81	%
Russell 3000® Index(4)		(37.31	)%		(1.95	)%		(0.78	)%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.
(2)	Class A commenced operations on March 1, 1999.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(4)	The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Note: Prior to March 1, 2002, a different sub-adviser managed Transamerica Focus, and it had a different investment objective and used different investment strategies. The performance set forth prior to that date is attributable to the previous sub-adviser.

          The portfolio management discussion of each Fund’s performance for its last fiscal year is attached as Exhibit B.

The Funds’ Fees and Expenses

          Shareholders of the Target Fund and the Destination Fund pay various fees and expenses, either directly or indirectly. The table below shows the fees and expenses that you would pay if you were to buy and hold shares of each Fund. The fees and expenses in the table appearing below are based on the expenses of the Funds for the twelve-month period ended April 30, 2009. The table also shows the pro forma expenses of the combined Destination Fund after giving effect to the Reorganization based on pro forma net assets as of April 30, 2009. Pro forma numbers are estimated in good faith and are hypothetical. Actual expenses may vary significantly.

	Transamerica					Transamerica
	Premier Focus			Transamerica		Focus
	Fund			Focus		(Pro Forma)
	Investor Class			Class P(a)		Class P
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A			N/A		N/A
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)
Management Fees		0.85	%		N/A		0.80	%
Rule 12b-1 Fees		0.25	%		N/A		0.25	%
Other Expenses		0.36	%		N/A		0.32	%
Total		1.46	%		N/A		1.37	%
Expense Reduction		0.06	%(c)		N/A		0.00	%(d)
Net Operating Expenses		1.40	%		N/A		1.37	%

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(a)	Because Class P of Transamerica Focus is a new share class, no fee and expense information is available for the twelve-month period ended April 30, 2009.
(b)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(c)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.40%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.40% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(d)	TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.40% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.

          The hypothetical example below helps you compare the cost of investing in each Fund. The example assumes that:

• you invest $10,000 in each Fund;

• you reinvest all dividends and distributions without a sales charge;

• you hold your shares for the time periods shown and then redeem all of your shares at the end of those periods;

• your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance); and

• each Fund’s operating expenses remain the same.

          The example also assumes no fees for IRA accounts, if applicable. Costs are the same whether you redeem at the end of any period or not. Pro forma expenses are included assuming a Reorganization of the Funds. The example is for comparison purposes only and is not a representation of either Fund’s actual expenses or returns, either past or future. Because actual return and expenses will be different, the example is for comparison only.

	Transamerica				Combined
Number of years	Premier Focus		Transamerica		Transamerica Focus
you own your shares	Fund		Focus		(Pro Forma)
Investor Class / Class P
Year 1	$	143		N/A	$	139
Year 3	$	456		N/A	$	434
Year 5	$	792		N/A	$	750
Year 10	$	1,741		N/A	$	1,646

REASONS FOR THE PROPOSED REORGANIZATION

          The Board of the Target Fund, including its Independent Directors, have unanimously determined that the proposed Reorganization would be in the best interests of the Target Fund and would not dilute the interests of the existing shareholders of the Target Fund. The Board of the Destination Fund, including the Independent Trustees, have unanimously determined that the Reorganization would be in the best interests of the Destination Fund and would not dilute the interests of the existing shareholders of the Destination Fund. Each Board believes that the proposed Reorganization will be advantageous to the shareholders of the Fund it oversees. In determining whether to approve the Reorganization, the Board Members considered the potential impact of the proposed Reorganization on the Funds’ shareholders and a variety of related factors, including, among others:

General Considerations

• The Board Members considered that the Reorganization presents an opportunity for the shareholders of the Target Fund to become investors in a combined fund that has a larger asset size without the obligation to pay commissions or other transaction costs that a fund normally incurs when purchasing securities. The Board Members considered TAM’s belief that this opportunity may give the combined Destination Fund the ability to diversify further its holdings and effect larger portfolio trading transactions, for the benefit of shareholders.

• The Board Members considered that the Reorganization could eliminate any confusion in the marketplace caused by having two funds with similar investment mandates and enhance the potential for the combined Destination Fund to achieve growth in assets. The Board Members noted that TAM believes that the combined Destination Fund may be better positioned to attract assets than the Target Fund, and that the larger size of the combined Destination Fund may offer the potential for greater economies of scale by enabling the combined Destination Fund to obtain better net prices on securities trades and by reducing per share expenses as fixed expenses are shared over a larger asset base.

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• The Board Members considered that the Reorganization could eliminate certain redundancies and inefficiencies in the Transamerica fund complex product line offerings, which could strengthen TAM’s ability to pursue investment and marketing opportunities on behalf of the Transamerica funds. The Board Members also considered that the Reorganization is one of a number of reorganizations and other initiatives recently approved by the Board Members of the Transamerica funds. The Board Members noted that the initiatives are designed to streamline the Transamerica fund complex, to promote operating efficiencies, and to result in a more cohesive fund platform.

Fees and Expenses

• The Board Members considered that the pro forma gross expense ratio of the combined Destination Fund is expected to be lower for the Class P shares of the combined Destination Fund as compared to the corresponding class of shares of the Target Fund. Furthermore, the Board considered that TAM has contractually undertaken through March 1, 2011 to waive fees and or reimburse expenses on behalf of the Destination Fund to the extent that the total operating expenses of Class P of the Destination Fund exceed a certain operating expense level.

• The Board Members considered that, given the anticipated costs and benefits of the Reorganization, the expenses associated with the preparation, printing and mailing of any shareholder communications, including this Information Statement/Prospectus, and any regulatory filings in connection with the Reorganization, would be shared by TAM, and, subject to certain limits, the Target Fund and the Destination Fund.

Investment Performance

• The Board Members noted that the performance of the Target Fund was higher than the Destination Fund’s historical performance for the 1-, 3- and 5-year periods ended February 28, 2009, but that this performance is attributable to a prior investment sub-adviser and a different investment program and that the Destination Fund would be managed in a manner substantially similar to the Target Fund, which has a stronger investment record.

Tax

• The Board Members considered the expected tax-free nature of the Reorganization for U.S. federal income tax purposes.

Investment Program

• The Board Members considered that, in connection with the proposed Reorganization, the Destination Fund will be renamed, will change sub-advisers and will undergo a change in its investment program, such that the resulting Fund has a substantially similar investment objective and investment strategy as the Target Fund.

Other Considerations

• The Board Members considered the terms and conditions of the Agreement and Plan of Reorganization.

• The Board Members considered that the portfolio managers of the combined Destination Fund may conclude that a significant number of holdings of the Destination Fund (due to its prior investment program and sub-adviser) may not be consistent with the combined Destination Fund’s long-term investment strategy, and may dispose of such positions, but that TAM represented that portfolio transition should not have a material adverse effect on the Funds and their shareholders.

• The Board Members considered the affiliations that exist among TAM and the sub-advisers to each Fund as well as certain arrangements between TIM and TAM, and noted that assets under management by sub-advisers affiliated with TAM may increase as a result of the Reorganization.

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CAPITALIZATION

          The following table sets forth the capitalization of the Target Fund and the Destination Fund as of August 7, 2009 and the pro forma combined capitalization of the combined Destination Fund as if the Reorganization had occurred on that date. If the Reorganization is consummated, the actual exchange ratios on the Closing Date may vary from the exchange ratios used in the computation below. This is due to changes in the market value of the portfolio securities of the Funds between August 7, 2009 and the Closing Date, changes in the amount of undistributed net investment income and net realized capital gains of the Funds during that period resulting from income and distributions, and changes in the accrued liabilities of the Funds during the same period.

	Transamerica
	Premier Focus				Transamerica Focus	Pro Forma
	Fund		Transamerica Focus		Pro Forma Adjustments	Transamerica Focus
Net Assets (000’s)
Class A		—	$	36,342		$	36,342
Class B		—	$	21,197		$	21,197
Class C		—	$	13,824		$	13,824
Class P / Investor Class (1)	$	62,875		—		$	62,875
Net Asset Value Per Share
Class A		—	$	10.92		$	10.92
Class B		—	$	10.18		$	10.18
Class C		—	$	10.17		$	10.17
Class P / Investor Class (1)	$	16.92		—		$	16.92
Shares Outstanding (000’s)
Class A		—		3,329			3,329
Class B		—		2,083			2,083
Class C		—		1,359			1,359
Class P / Investor Class (1)		3,717		—			3,717

⁽¹⁾ Investor Class shares of Transamerica Premier Focus Fund will receive Class P shares of the Destination Fund following the Reorganization.

          It is impossible to predict with any certainty how many shares of the Destination Fund will actually be received and distributed by your Target Fund on the Closing Date. The foregoing table should not be relied upon to determine the amount of Destination Fund shares that will actually be received and distributed.

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ADDITIONAL INFORMATION

          For information relating to each Fund and the Reorganization, including tax capital loss carryforwards, the tax status of the Reorganization, a comparison of the fundamental investment policies of the Funds, how to buy, sell or exchange Fund shares, how each Fund values its securities, financial highlights information for each Fund and ownership of shares of the Funds, please see the sections immediately following the discussion of the Group 6 Reorganization.

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GROUP 5 REORGANIZATION

TRANSAMERICA PREMIER GROWTH OPPORTUNITIES FUND
(the “Target Fund”)

AND

TRANSAMERICA GROWTH OPPORTUNITIES
(the “Destination Fund”)

SUMMARY

          The following is a summary of more complete information appearing later in this Information Statement/Prospectus or incorporated herein. You should read carefully the entire Information Statement/Prospectus, including the form of Agreement and Plan of Reorganization attached as Exhibit A and the Portfolio Management Discussion attached as Exhibit B, because they contain details that are not in the summary.

          In the Reorganization, the Target Fund will be reorganized into the Destination Fund. The Destination Fund will issue Class P shares to the Target Fund in an amount equal to the aggregate net asset value of the Target Fund’s Investor Class shares.

          The Target Fund and the Destination Fund are advised by Transamerica Asset Management, Inc. (“TAM”) and have similar investment objectives, principal investment strategies and policies and related risks. The tables below provide a comparison of certain features of the two Funds. In the tables below, if a row extends across the entire table, the information applies to both the Destination Fund and the Target Fund.

Comparison of Transamerica Premier Growth Opportunities Fund to Transamerica Growth Opportunities

	Transamerica Premier Growth Opportunities
	Fund	Transamerica Growth Opportunities
Investment Objective	The Fund seeks to maximize long-term growth.	The objective of the Fund is to maximize long-term growth.
Principal Investment Strategies and Policies	The Fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), uses a “bottom-up” approach to investing and builds the Fund’s portfolio one company at a time by investing fund assets principally in: equity securities such as common stocks, preferred stocks, rights, warrants and securities convertible into or exchangeable for common stocks of small and medium capitalization companies. TIM, under normal market conditions, invests at least 65% of the Fund’s assets in a diversified portfolio of equity securities. The companies issuing these securities are companies with small- and medium-sized market capitalization whose market capitalization or annual revenues are no more than $10 billion at the time of purchase. It is the opinion of TIM that companies with smaller and medium-sized capitalization levels are less actively followed by security analysts, and, therefore, they may be undervalued, providing strong opportunities for a rise in value. TIM uses a “bottom-up” approach in investing. When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against	TIM uses a “bottom-up” approach to investing and builds the Fund’s portfolio one company at a time by investing Fund assets principally in equity securities such as common stocks, preferred stocks, rights, warrants and securities convertible into or exchangeable for common stocks of small and medium capitalization companies. TIM, under normal market conditions, invests at least 65% of the Fund’s assets in a diversified portfolio of equity securities. The companies issuing these securities are companies with small- and medium-sized market capitalization whose market capitalization or annual revenues are no more than $10 billion at the time of purchase. TIM selects stocks that are issued by U.S. companies which, in its opinion, show:       •   strong potential for steady growth       •   high barriers to competition       •   experienced management incentivized along shareholder interests It is the opinion of TIM that companies with smaller and medium-sized capitalization levels are less actively followed by security analysts, and,

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	Transamerica Premier Growth Opportunities
	Fund	Transamerica Growth Opportunities
	the context of broader market factors. TIM selects stocks that are issued by U.S. companies which, in its opinion, show:       •   strong potential for steady growth       •   high barriers to competition       •   experienced management incentivized along shareholder interests While the Fund invests principally in equity securities, TIM may also, to a lesser extent, invest in debt securities or other securities and investment strategies in pursuit of its investment objective. The Fund may invest in assets its cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.	therefore, they may be undervalued, providing strong opportunities for a rise in value. While the Fund invests principally in equity securities, TIM may also, to a lesser extent, invest in debt securities or other securities and investment strategies in pursuit of its investment objective. The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.
Investment Adviser	TAM
Sub-Adviser	TIM
Portfolio Managers	Edward S. Han Portfolio Manager (lead) Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience. John J. Huber, CFA Portfolio Manager (lead) John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience. Each Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.
Business	A diversified open-end investment management company organized as a series of Transamerica Premier Funds, a Maryland corporation.	A diversified open-end investment management company organized as a series of Transamerica Funds, a Delaware statutory trust.
Net Assets (as of June 30, 2009)	$83,939,000	$168,599,512

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Classes of Shares, Fees and Expenses

	Transamerica Premier Growth Opportunities
	Fund	Transamerica Growth Opportunities
Sales Charges and Fees	Investor Class shares are offered without an initial sales charge. Investor Class shares are not subject to a contingent deferred sales charge. Investor Class shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.25% of the average daily net assets of the Fund. The fee accrues daily and is based on an annual percentage of the daily average net assets.	Class P shares are offered without an initial sales charge. Class P shares are available only to former investors in Investor Class shares of Transamerica Premier Funds. Class P shares are not subject to a contingent deferred sales charge. Class P shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.25% of the average daily net assets of the Fund. The fee accrues daily and is based on an annual percentage of the daily average net assets.
Advisory Fees	TAM is entitled to receive an advisory fee based on an annual rate of the Fund’s average daily net assets:       •   0.85% for the first $1 billion of assets;       •   0.82% of the next $1 billion of assets; and	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets):       •   0.80% for the first $250 million of assets;
	•   0.80% of assets in excess of $2 billion.	•   0.75% for assets over $250 million and up to
		$500 million; and
	For the fiscal year ended December 31, 2008, the Fund paid advisory fees of 0.80% of the Fund’s average daily net assets.	•   0.70% for assets in excess of $500 million.
		For the fiscal year ended October 31, 2008, the Fund paid advisory fees of 0.79% of the Fund’s average daily net assets.
Fee Waiver and Expense Limitations	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.40%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.40% (other than interest, taxes, brokerage commissions and extraordinary expenses).	TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.40% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.
Gross and Net Expenses	For a comparison of the gross and net expenses of the Funds, please see the class fee tables in the “The Funds’ Fees and Expenses” section.

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Comparison of Principal Risks of Investing in the Funds

              Because the Funds have similar investment objectives and principal investment strategies and policies, they are subject to similar principal risks. Risk is inherent in all investing. The value of your investment in a Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in a Fund or your investment may not perform as well as other similar investments.

              Each Fund is subject to the following principal risks:

• Market. The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

• Stocks. Stocks may be volatile — their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down.

• Growth Stocks. Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

• Preferred Stocks. Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

• Warrants and Rights. Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

• Convertible Securities. Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price

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of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

• Value Investing. The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The Fund may underperform other equity funds that use different investing styles. The Fund may also underperform other equity funds using the value style.

• Derivatives. The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Fund’s sub-adviser may not make use of derivatives for a variety of reasons.

• Foreign Securities. Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

- different accounting and reporting practices

- less information available to the public

- less (or different) regulation of securities markets

- more complex business negotiations

- less liquidity

- more fluctuations in prices

- delays in settling foreign securities transactions

- higher costs for holding shares (custodial fees)

- higher transaction costs

- vulnerability to seizure and taxes

- political or financial instability and small markets

- different market trading days

• Currency. When the Fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons

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such as changes in interest rates, government intervention or political developments. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund.

• Small- or Medium-Sized Companies. Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

• Fixed-Income Securities. The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

- market risk: fluctuations in market value

- interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

- prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

- extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

- default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

The Funds’ Past Performance

          The bar charts and tables below provide some indication of the risks of investing in each Fund by showing you how the performance of the Investor Class of Transamerica Premier Growth Opportunities Fund and Class A of Transamerica Growth Opportunities has varied from year to year for 10 years or since inception, as applicable, and how the average total returns of each Fund’s applicable class of shares for different periods compare to the returns of one or more broad measures of market performance. Absent any applicable limitation of or cap on the Funds’ expenses, performance would have been lower. No performance information is presented for the Class P shares of Transamerica Growth Opportunities because Class P shares are newly offered. The Class P shares of Transamerica Growth Opportunities will have different performance from that

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shown in the bar charts below because they will have different expenses than that of the share classes shown. A Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.

          Each Fund makes updated information available (available at no charge by calling the Funds’ toll-free number, [1-800-851-9777], or by visiting the Funds’ website at www.transamericafunds.com (select “Transamerica Premier Funds” for the Target Fund and “Transamerica Funds” for the Destination Fund)).

Transamerica Premier Growth Opportunities Fund Annual Returns — Investor Class Shares
(per year ended 12/31)

The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	53.56	%	Quarter ended:	12/31/1999
Lowest:	(36.17	)%	Quarter ended:	3/31/2001

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 13.29%.

Transamerica Premier Growth Opportunities Fund Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

Transamerica Premier Growth Opportunities Fund	1 Year			5 Years			10 Years
Investor Class — Return before Taxes		(40.85	)%		0.13	%		2.08	%
Investor Class — Return after taxes on distributions(2)		(40.85	)%		(0.01	)%		1.10	%
Investor Class — Return after taxes on distributions and sale of fund shares(2)		(26.56	)%		0.19	%		1.74	%
Russell Midcap® Growth Index(3)		(44.32	)%		(2.33	)%		(0.19	)%
Russell 2500® Growth Index(4)		(41.50	)%		(2.24	)%		0.75	%

(1)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(2)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(3)	The Russell Midcap® Growth Index measures the performance of mid-cap growth companies (mid-cap companies with high price-to-book ratios and high forecasted growth values). Effective September 18, 2008, the Russell Midcap® Growth Index became the Fund’s primary benchmark to better align the Fund’s benchmark to reflect the universe of securities in the Fund’s portfolio. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.
(4)	The Russell 2500® Growth Index is a widely recognized, unmanaged index of market performance which measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. This index served as the Fund’s primary benchmark prior to September 18, 2008, at which time it was replaced with the Russell Midcap® Growth Index. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

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Transamerica Growth Opportunities Annual Returns — Class A Shares
(per year ended 12/31)

          The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	23.35	%	Quarter ended:	12/31/2001
Lowest:	(34.23	)%	Quarter ended:	3/31/2001

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 12.36%.

Transamerica Growth Opportunities Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

							Life of
Transamerica Growth Opportunities	1 Year			5 Years			Fund(2)
Class A — Return before Taxes		(44.44	)%		(1.37	)%		(5.95	)%
Class A — Return after taxes on distributions(3)		(44.44	)%		(1.37	)%		(5.95	)%
Class A — Return after taxes on distributions and sale of fund shares(3)		(28.89	)%		(1.16	)%		(4.86	)%
Russell Midcap® Growth Index(4)		(44.32	)%		(2.33	)%		(6.81	)%

(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.
(2)	Class A commenced operations on March 1, 2000.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(4)	The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

          The portfolio management discussion of each Fund’s performance for its last fiscal year is attached as Exhibit B.

The Funds’ Fees and Expenses

          Shareholders of the Target Fund and the Destination Fund pay various fees and expenses, either directly or indirectly. The table below shows the fees and expenses that you would pay if you were to buy and hold shares of each Fund. The fees and expenses in the table appearing below are based on the expenses of the Funds for the twelve-month period ended April 30, 2009. The table also shows the pro forma expenses of the combined Destination Fund after giving effect to the Reorganization based on pro forma net assets as of April 30, 2009. Pro forma numbers are estimated in good faith and are hypothetical. Actual expenses may vary significantly.

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	Transamerica
	Premier					Transamerica
	Growth			Transamerica		Growth
	Opportunities			Growth		Opportunities
	Fund			Opportunities		(Pro Forma)
	Investor Class			Class P(a)		Class P
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A		N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A			N/A		N/A
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(b)
Management Fees		0.85	%		N/A		0.79	%
Rule 12b-1 Fees		0.25	%		N/A		0.25	%
Other Expenses		0.37	%		N/A		0.33	%
Total		1.47	%		N/A		1.37	%
Expense Reduction		0.07	%(c)		N/A		0.00	%(d)
Net Operating Expenses		1.40	%		N/A		1.37	%

(a)	Because Class P of Transamerica Growth Opportunities is a new share class, no fee and expense information is available for the twelve-month period ended April 30, 2009.
(b)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(c)	Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.40%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.40% (other than interest, taxes, brokerage commissions and extraordinary expenses).
(d)	TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.40% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. This expense limitation will be in effect for the Fund through March 1, 2011.

          The hypothetical example below helps you compare the cost of investing in each Fund. The example assumes that:

• you invest $10,000 in each Fund;

• you reinvest all dividends and distributions without a sales charge;

• you hold your shares for the time periods shown and then redeem all of your shares at the end of those periods;

• your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance); and

• each Fund’s operating expenses remain the same.

          The example also assumes no fees for IRA accounts, if applicable. Costs are the same whether you redeem at the end of any period or not. Pro forma expenses are included assuming a Reorganization of the Funds. The example is for comparison purposes only and is not a representation of either Fund’s actual expenses or returns, either past or future. Because actual return and expenses will be different, the example is for comparison only.

					Combined
					Transamerica
	Transamerica		Transamerica		Growth
Number of years	Premier Growth		Growth		Opportunities
you own your shares	Opportunities Fund		Opportunities		(Pro Forma)
Investor Class / Class P
Year 1	$	143		N/A	$	139
Year 3	$	458		N/A	$	434
Year 5	$	796		N/A	$	750
Year 10	$	1,751		N/A	$	1,646

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REASONS FOR THE PROPOSED REORGANIZATION

          The Board of the Target Fund, including its Independent Directors, have unanimously determined that the proposed Reorganization would be in the best interests of the Target Fund and would not dilute the interests of the existing shareholders of the Target Fund. The Board of the Destination Fund, including the Independent Trustees, have unanimously determined that the Reorganization would be in the best interests of the Destination Fund and would not dilute the interests of the existing shareholders of the Destination Fund. Each Board believes that the proposed Reorganization will be advantageous to the shareholders of the Fund it oversees. In determining whether to approve the Reorganization, the Board Members considered the potential impact of the proposed Reorganization on the Funds’ shareholders and a variety of related factors, including, among others:

General Considerations

• The Board Members considered that the Reorganization presents an opportunity for the shareholders of the Target Fund to become investors in a combined fund that has a larger asset size without the obligation to pay commissions or other transaction costs that a fund normally incurs when purchasing securities. The Board Members considered TAM’s belief that this opportunity may give the combined Destination Fund the ability to diversify further its holdings and effect larger portfolio trading transactions, for the benefit of shareholders.

• The Board Members considered that the Reorganization could eliminate any confusion in the marketplace caused by having two funds with similar investment mandates and enhance the potential for the combined Destination Fund to achieve growth in assets. The Board Members noted that TAM believes that the combined Destination Fund may be better positioned to attract assets than the Target Fund, and that the larger size of the combined Destination Fund may offer the potential for greater economies of scale by enabling the combined Destination Fund to obtain better net prices on securities trades and by reducing per share expenses as fixed expenses are shared over a larger asset base.

• The Board Members considered that the Reorganization could eliminate certain redundancies and inefficiencies in the Transamerica fund complex product line offerings, which could strengthen TAM’s ability to pursue investment and marketing opportunities on behalf of the Transamerica funds. The Board Members also considered that the Reorganization is one of a number of reorganizations and other initiatives recently approved by the Board Members of the Transamerica funds. The Board Members noted that the initiatives are designed to streamline the Transamerica fund complex, to promote operating efficiencies, and to result in a more cohesive fund platform.

Fees and Expenses

• The Board Members considered that the pro forma gross expense ratio of the combined Destination Fund is expected to be lower for the Class P shares of the combined Destination Fund as compared to the corresponding class of shares of the Target Fund. Furthermore, the Board Members considered that TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the combined Destination Fund to the extent that the total operating expenses of Class P shares of the combined Destination Fund exceed certain operating expense levels.

• The Board Members considered that, given the anticipated costs and benefits of the Reorganization, the expenses associated with the preparation, printing and mailing of any shareholder communications, including this Information Statement/Prospectus, and any

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regulatory filings in connection with the Reorganization, would be shared by TAM, and, subject to certain limits, the Target Fund and the Destination Fund.

Investment Performance

• The Board Members considered that the performance of the Funds was generally comparable over the 1-, 3- and 5-year periods ended February 28, 2009. The Board Members noted, however, that the Target Fund’s performance was higher for each of the 1-, 3- and 5-year periods.

Tax

• The Board Members considered the expected tax-free nature of the Reorganization for U.S. federal income tax purposes.

Investment Program

• The Board Members considered the investment objective and policies of the Destination Fund and their compatibility with those of the Target Fund.

• The Board Members considered that TAM is the adviser and TIM is the sub-adviser to the Target Fund and the Destination Fund.

Other Considerations

• The Board Members considered the terms and conditions of the Agreement and Plan of Reorganization.

• The Board Members considered that the portfolio managers of the combined Destination Fund may conclude that a significant number of holdings of the Target Fund may not be consistent with the combined Destination Fund’s long-term investment strategy, and may dispose of such positions, but that TAM represented that portfolio transition should not have a material adverse effect on the Funds and their shareholders.

CAPITALIZATION

          The following table sets forth the capitalization of the Target Fund and the Destination Fund as of August 7, 2009 and the pro forma combined capitalization of the combined Destination Fund as if the Reorganization had occurred on that date. If the Reorganization is consummated, the actual exchange ratios on the Closing Date may vary from the exchange ratios used in the computation below. This is due to changes in the market value of the portfolio securities of the Funds between August 7, 2009 and the Closing Date, changes in the amount of undistributed net investment income and net realized capital gains of the Funds during that period resulting from income and distributions, and changes in the accrued liabilities of the Funds during the same period.

	Transamerica
	Premier Growth		Transamerica		Transamerica Growth			Pro Forma
	Opportunities		Growth		Opportunities Pro			Transamerica Growth
	Fund		Opportunities		Forma Adjustments			Opportunities
Net Assets (000’s)
Class A		—	$	49,768				$	49,768
Class B		—	$	15,060				$	15,060
Class C		—	$	11,098				$	11,098
Class P		—		—	$	91,913		$	91,913
Class I		—	$	108,778				$	108,778
Investor Class(1)	$	91,913		—	$	(91,913	)		—
Net Asset Value Per Share
Class A		—	$	7.57				$	7.57
Class B		—	$	7.03				$	7.03

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	Transamerica
	Premier Growth		Transamerica		Transamerica Growth			Pro Forma
	Opportunities		Growth		Opportunities Pro			Transamerica Growth
	Fund		Opportunities		Forma Adjustments			Opportunities
Class C		—	$	7.06				$	7.06
Class P		—		—	$	20.30		$	20.30
Class I		—	$	7.81				$	7.81
Investor Class(1)	$	20.30		—	$	(20.30	)		—
Shares Outstanding (000’s)
Class A		—		6,571					6,571
Class B		—		2,141					2,141
Class C		—		1,571					1,571
Class P		—		—		4,529			4,529
Class I		—		13,920					13,920
Investor Class(1)		4,529		—		(4,529	)		—

⁽¹⁾ Investor Class shares of Transamerica Premier Growth Opportunities Fund will receive Class P shares of the Destination Fund following the Reorganization.

          It is impossible to predict with any certainty how many shares of the Destination Fund will actually be received and distributed by your Target Fund on the Closing Date. The foregoing table should not be relied upon to determine the amount of Destination Fund shares that will actually be received and distributed.

ADDITIONAL INFORMATION

          For information relating to each Fund and the Reorganization, including tax capital loss carryforwards, the tax status of the Reorganization, a comparison of the fundamental investment policies of the Funds, how to buy, sell or exchange Fund shares, how each Fund values its securities, financial highlights information for each Fund and ownership of shares of the Funds, please see the sections immediately following the discussion of the Group 6 Reorganization.

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GROUP 6 REORGANIZATION

TRANSAMERICA CONVERTIBLE SECURITIES
(the “Target Fund”)

AND

TRANSAMERICA FLEXIBLE INCOME
(the “Destination Fund”)

SUMMARY

          The following is a summary of more complete information appearing later in this Information Statement/Prospectus or incorporated herein. You should read carefully the entire Information Statement/Prospectus, including the form of Agreement and Plan of Reorganization attached as Exhibit A and the Portfolio Management Discussion attached as Exhibit B, because they contain details that are not in the summary.

          In the Reorganization, the Target Fund will be reorganized into the Destination Fund, with the Target Fund receiving shares of the corresponding class of the Destination Fund as shown in the following table:

Target Fund & Shares	Destination Fund & Shares
Transamerica Convertible Securities	Transamerica Flexible Income
Class A	Class A
Class B	Class B
Class C	Class C
Class I	Class I

          The Target Fund and the Destination Fund are advised by Transamerica Asset Management, Inc. (“TAM”) and have similar investment objectives, principal investment strategies and policies and related risks. The tables below provide a comparison of certain features of the two Funds. In the tables below, if a row extends across the entire table, the information applies to both the Destination Fund and the Target Fund.

Comparison of Transamerica Convertible Securities to Transamerica Flexible Income

	Transamerica Convertible Securities	Transamerica Flexible Income
Investment Objective	The objective of the Fund is to seek maximum total return through a combination of current income and capital appreciation.	The objective of the Fund is to seek to provide a high total return through a combination of current income and capital appreciation.*
Principal Investment Strategies and Policies	The Fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve this objective by investing principally in convertible securities. In seeking its investment objective, TIM will normally invest at least 80% of net assets in convertible securities, which are across the credit spectrum and perform more like a stock when the underlying share price is high relative to the conversion price and more like a bond when the underlying share price is low relative to the conversion price. TIM may also invest the Fund’s assets in other types of securities, including common stock. TIM may invest the Fund’s assets in securities of foreign issuers in addition to securities of domestic issuers.	TIM uses a “bottom up” approach to investing and builds the Fund’s portfolio one company at a time. The Fund will generally invest at least 80% of net assets in a broad range of fixed-income securities including:       •   U.S. Government and foreign government bonds and notes (including emerging market countries);       •   Mortgage-backed, commercial mortgage-backed, and asset-backed securities (including collateralized mortgage obligations);       •   Corporate bonds of issuers in the U.S. and foreign countries (including emerging market countries);       •   Convertible bonds and other convertible securities;

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Transamerica Convertible Securities	Transamerica Flexible Income
In buying and selling securities for the Fund, TIM relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, industry position, and economic market conditions. Factors considered include growth potential, earnings estimates, and quality of management. TIM may use various techniques, such as buying and selling futures contracts, to increase or decrease the Fund’s exposure to changing security prices or other factors that affect security values. The Fund may also invest in other securities and investment strategies in pursuit of its investment objective. The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.	•   Bank loans and loan participations;       •   Structured notes; and       •   Preferred securities. With respect to these investments:       1.    Under normal market conditions, at least 50% of the value of the Fund’s assets will be invested in (a) debt securities which have a rating within the four highest grades as determined by Moody’s Investors Service, Inc. (“Moody’s”) (“Aaa, Aa, A or Baa”) or Standard & Poor’s Corporation (“S&P”) (“AAA, AA, A or BBB”); (b) securities issued or guaranteed by the United States Government or its agencies or instrumentalities; (c) commercial paper rated Prime, Prime-1 or Prime-2 by NCO/Moody’s Commercial Paper Division, (“Moody’s”), or A-1 or A-2 by S&P; or (d) cash or cash equivalents;       2.    Up to 50% of the value of the Fund’s assets may be invested in other debt securities which are not rated by Moody’s or S&P or, if so rated, are not within the grades or ratings referred to above; and       3.    The Fund may engage in options and futures transactions, foreign currency transactions, and swap transactions. The Fund may invest up to 20% of its total assets in equity securities, such as common stocks, rights, warrants or preferred stock. Ordinarily, the Fund will purchase debt securities having call or refunding protection or securities which are not considered by the Fund likely to be called or refunded in the near term, in order to preserve initial annual yields to the Fund. The Fund may invest in securities of any maturity and does not have a target average duration. Short-Term Trading. The Fund may use short-term trading as a means of managing its portfolio to achieve its investment objectives. As used herein, “short-term trading” means selling securities held for a relatively brief period of time, usually less than three months. Short-term trading will be used by the Fund primarily in two situations:
	(a) Market Developments. A security may be sold to avoid depreciation in what the Fund anticipates will be a market decline (a rise in interest rates), or a security may be purchased in anticipation of a market rise (a decline in interest rates) and later sold; and (b) Yield Disparities. A security may be sold and another of comparable quality purchased at approximately the same time in order to take

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Transamerica Convertible Securities

Transamerica Flexible Income

advantage of what the Fund believes is a temporary disparity in the normal yield relationship between the two securities (a “yield disparity”). Short-term trading to take advantage of a yield disparity may be undertaken even if levels of interest rates remain unchanged. Yield disparities occur frequently for reasons not directly related to the investment quality of the respective issues or the general movement of interest rates, but may result from changes in the overall demand for or supply of various types of bonds, changes in the investment objectives or the cash requirements of investors, and the requirements of dealers to correct long or short inventory positions. Short-term trading techniques will be used principally in connection with higher quality, non-convertible debt securities, which are often better suited for short-term trading because the market in such securities is generally of greater depth and offers greater liquidity than the market in debt securities of lower quality. It is anticipated that short-term trading will be less applicable to any convertible securities which the Fund may own, since such securities will usually be purchased when the Fund believes that the market value of the underlying equity security is likely to appreciate over a period of time. The Fund will engage in short-term trading if it believes the transactions, net of costs (including commission, if any), will result in improving the appreciation potential or income of its portfolio. Whether any improvement will be realized by short-term trading will depend upon the ability of the Fund to evaluate particular securities and anticipate relevant market factors, including interest rate trends and variations from such trends. Short-term trading such as that contemplated by the Fund places a premium upon the ability of the Fund to obtain relevant information, evaluate it promptly, and take advantage of its evaluations by completing transactions on a favorable basis. By virtue of short-term trading, the Fund may engage in greater buying and selling activity than investment companies which are not permitted to employ such a policy in seeking their investment objectives. Such activity can result in greater costs of operation than is the case with other investment companies, and risks of loss in portfolio value could be greater. Accordingly, an investment in Fund shares may be more speculative than an investment in shares of an investment company which cannot engage in short-term trading. The sub-adviser may sell the Fund’s securities when its expectations regarding market interest rates change or the quality or return changes on investment. The Fund may invest its assets in cash, cash

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	Transamerica Convertible Securities	Transamerica Flexible Income
		equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.
Investment Adviser	TAM
Sub-Adviser	TIM
Portfolio	Kirk J. Kim	Kirk J. Kim
Managers	Portfolio Manager (lead) Kirk J. Kim is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. He holds a B.S. in Finance from the University of Southern California. Mr. Kim has 13 years of investment experience. Peter O. Lopez Portfolio Manager (lead) Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience. The Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.	Peter O. Lopez Brian W. Westhoff, CFA Portfolio Manager (lead) Brian W. Westhoff is a Portfolio Manager at TIM. Prior to joining TIM in 2003, Mr. Westhoff worked as an Equity Research intern with Credit Suisse Asset Management, as a Fixed Income Investment Analyst at St. Paul Companies, and as an Argentine/Oil and Gas Equity Research Intern with Merrill Lynch in Argentina. He holds an M.B.A. from Thunderbird, the Garvin Graduate School of International Management, and received a B.S. in Business Administration from Drake University. Mr. Westhoff has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience. Derek S. Brown, CFA Portfolio Manager (co) Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience. Greg D. Haendel, CFA Portfolio Manager (co) Greg D. Haendel is a Portfolio Manager at TIM.

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	Transamerica Convertible Securities	Transamerica Flexible Income
		Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience. The Fund’s statement of additional information provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.
Business	A diversified open-end investment management company organized as a series of Transamerica Funds, a Delaware statutory trust.
Net Assets (as of June 30, 2009)	$65,121,769	$141,078,936

* The Fund’s investment objective will change on or before the Closing Date. The Fund’s current investment objective is to seek to provide as high a level of current income for distribution as is consistent with prudent investment, with capital appreciation as only a secondary objective.

Classes of Shares, Fees and Expenses

	Transamerica Convertible Securities	Transamerica Flexible Income
Sales Charges and Fees	Class A shares are subject to a maximum initial sales charge of 4.75%. Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge for 24 months after purchase.
	Class B shares are subject to a maximum deferred sales charge of 5.00%, which declines during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
	Class C shares are subject to maximum deferred sales charge of 1.00% if redeemed during the first 12 months of purchase.
	Class A shares, Class B shares and Class C shares pay a distribution and service (12b-1) fee, which is used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell Fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.35% for Class A shares, 1.00% for Class B shares and 1.00% Class C shares.
	Class I shares are offered without an initial sales charge.
	Class I shares are not subject to a contingent deferred sales charge.
	Class I shares are not subject to distribution and service (12b-1) fees.
Advisory Fees	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets):	TAM receives compensation, calculated daily and paid monthly, from the Fund at the indicated annual rates (expressed as a specified percentage of the Fund’s average daily net assets):
	•   0.75% for the first $250 million of assets; and	•    0.725% for the first $250 million of assets;
	•   0.70% for in excess of $250 million.	•   0.675% for assets over $250 million and up to $350 million; and
	For the fiscal year ended October 31, 2008, the Fund paid advisory fees of 0.75% of the Fund’s average daily net assets.	•    0.625% for assets in excess of $350 million. For the fiscal year ended October 31, 2008, the Fund paid advisory fees of 0.71% of the Fund’s average daily net assets.
Fee Waiver and Expense Limitations	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.35%, excluding 12b-1 fees and extraordinary expenses. TAM is	Contractual arrangements have been made with TAM, through March 1, 2011, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.50%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled

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	Transamerica Convertible Securities	Transamerica Flexible Income
	entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.35%, excluding 12b-1 fees and extraordinary expenses.	to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.50%, excluding 12b-1 fees and extraordinary expenses.
Gross and Net Expenses	For a comparison of the gross and net expenses of the Funds, please see the class fee tables in the “The Funds’ Fees and Expenses” section.

Comparison of Principal Risks of Investing in the Funds

          The Funds are subject to similar principal risks. Risk is inherent in all investing. The value of your investment in a Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in a Fund or your investment may not perform as well as other similar investments.

          Each Fund is subject to the following principal risks:

• Market. The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

• Convertible Securities. Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

• Stocks. Stocks may be volatile — their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down.

• Derivatives. The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities.

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Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Fund’s sub-adviser may not make use of derivatives for a variety of reasons.

• Fixed-Income Securities. The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

- market risk: fluctuations in market value

- interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

- prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

- extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

- default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

• Foreign Securities. Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

- different accounting and reporting practices

- less information available to the public

- less (or different) regulation of securities markets

- more complex business negotiations

- less liquidity

- more fluctuations in prices

- delays in settling foreign securities transactions

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- higher costs for holding shares (custodial fees)

- higher transaction costs

- vulnerability to seizure and taxes

- political or financial instability and small markets

- different market trading days

• Currency. When the Fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund.

The Destination Fund is subject to the following additional principal risks:

• Mortgage-Related Securities. Mortgage-related securities in which the Fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the Fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the Fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The Fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the Fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

• Emerging Markets. Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

• Loans. The Fund may invest in certain commercial loans, including loans generally known as

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	“syndicated bank loans,” by acquiring participations or assignments in such loans. The lack of a liquid secondary market for such securities may have an adverse impact on the value of the securities and a fund’s ability to dispose of particular assignments or participations when necessary to meet redemptions of shares or to meet the fund’s liquidity needs. When purchasing a participation, a fund may be subject to the credit risks of both the borrower and the lender that is selling the participation. When purchasing a loan assignment, a fund acquires direct rights against the borrowers, but only to the extent of those held by the assigning lender. Investment in loans through a direct assignment from the financial institution’s interests with respect to a loan may involve additional risks to a fund. It is also unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive regulatory guidance, a fund relies on its sub-adviser’s research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the fund.
•	Structured Notes. The Fund may invest in various types of structured instruments, including securities that have demand, tender or put features, or interest rate rest features. Structured instruments may take the form of participation interests or receipts in underlying securities or other assets, and in some cases are backed by a financial institution serving as a liquidity provider. Some of these instruments may have an interest rate swap feature which substitutes a floating or variable interest rate for the fixed interest rate on an underlying security, and some may be asset-backed or mortgage-backed securities. Structured instruments are a type of derivative instrument and the payment and credit qualities of these instruments derive from the assets embedded in the structure from which they are issued.
•	High-Yield Debt Securities. High-yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher-quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the Fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.
•	Preferred Stock. Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.
•	Warrants and Rights. Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.
•	Active Trading. The Fund is actively managed and, under appropriate circumstances, may purchase and sell securities without regard to the length of time held. A high portfolio turnover rate

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may increase transaction costs and generate a high level of taxable short-term capital gains, both of which may negatively impact the Fund’s performance.

The Funds’ Past Performance

     The bar charts and tables below provide some indication of the risks of investing in each Fund by showing you how the performance of Class A of Transamerica Convertible Securities and Class A of Transamerica Flexible Income has varied from year to year for 10 years or since inception, as applicable, and how the average total returns of each Fund’s applicable class of shares for different periods compare to the returns of one or more broad measures of market performance. Absent any applicable limitation of or cap on the Funds’ expenses, performance would have been lower. The Class B, Class C and Class I shares of Transamerica Convertible Securities and the Class B, Class C and Class I shares of Transamerica Flexible Income will have different performance from that shown in the bar charts below because they have different expenses than the share classes shown. A Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.

     Each Fund makes updated information available (available at no charge by calling the Funds’ toll-free number, [1-800-851-9777], or by visiting the Funds’ website at www.transamericafunds.com (select “Transamerica Funds” for the Target Fund and the Destination Fund)).

Transamerica Convertible Securities Annual Returns — Class A Shares
(per year ended 12/31)

The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	11.89	%	Quarter ended:	6/30/2003
Lowest:	(17.71	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 8.25%.

Transamerica Convertible Securities Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

							Life of
Transamerica Convertible Securities	1 Year			5 Years			Fund(2)
Class A
Return before taxes		(39.09	)%		(1.37	)%		1.70	%
Return after taxes on distributions(3)		(39.45	)%		(3.33	)%		(0.07	)%
Return after taxes on distributions and sale of fund shares(3)		(25.36	)%		(1.45	)%		1.05	%
Class B (Return before Taxes Only)		(39.54	)%		(1.21	)%		1.75	%
Class C (Return before Taxes Only)		(37.00	)%		(1.11	)%		2.94	%
Class I (Return before Taxes Only)		(35.62	)%		N/A			(4.48	)%
Merrill Lynch All U.S. Convertibles Index(4)		(35.74	)%		(3.44	)%		(0.29	)%

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(1)	Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account. After-tax returns are presented for only one class and returns for other classes will vary.
(2)	Class A and Class B commenced operations on March 1, 2002. Class C commenced operations on November 11, 2002. Class I commenced operations on November 15, 2005.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(4)	The Merrill Lynch All U.S. Convertibles Index is a widely recognized, unmanaged index of market performance that is a market capitalization-weighted index of domestic corporate convertible securities that are convertible to common stock only. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Transamerica Flexible Income Annual Returns — Class A Shares
(per year ended 12/31)

The highest and lowest quarterly returns for the periods reflected in the table above are:

Highest:	5.43	%	Quarter ended:	9/30/2002
Lowest:	(12.66	)%	Quarter ended:	12/31/2008

The year-to-date return as of the most recent calendar quarter, which ended 6/30/2009, was 14.54%.

Transamerica Flexible Income Average Annual Total Returns
(for periods ended 12/31/2008)⁽¹⁾

							10 Years or Life of
Transamerica Flexible Income	1 Year			5 Years			Fund(2)
Class A
Return before taxes		(22.66	)%		(2.70	)%		1.41	%
Return after taxes on distributions(3)		(24.20	)%		(4.49	)%		(0.52	)%
Return after taxes on distributions and sale of fund shares(3)		(14.59	)%		(3.09	)%		0.16	%
Class B (Return before Taxes Only)		(23.18	)%		(2.58	)%		1.36	%
Class C (Return before Taxes Only)		(20.07	)%		(2.41	)%		(0.99	)%
Class I (Return before Taxes Only)		(18.34	)%		N/A			(2.62	)%
Barclays Capital U.S. Aggregate Index(4)		5.24	%		4.65	%		5.63	%
Barclays Capital U.S. Government/Credit Bond Index(5)		5.70	%		4.64	%		5.64	%

⁽¹⁾ Actual after-tax returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account. After-tax returns are presented for only one class and returns for other classes will vary.

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(2)	Class A commenced operations on June 29, 1987. Class B commenced operations on October 1, 1995. Class C commenced operations on November 11, 2002. Class I commenced operations on November 8, 2004.
(3)	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
(4)	The Barclays Capital U.S. Aggregate Index (formerly, Lehman Brothers U.S. Aggregate Index) is a broad-based market index that covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.
(5)	The Barclays Capital U.S. Government/Credit Bond Index (formerly, Lehman Brothers U.S. Government/Credit Bond Index), is a broad-based, unmanaged index of all government and corporate bonds that are investment grade with at least one year to maturity. This index served as the Fund’s benchmark prior to January 1, 2009, at which time it was replaced with the BCUSA Index. This benchmark index change was made to more accurately reflect the principal strategies and policies of the Fund. The index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Note: Prior to March 1, 2004, a different sub-adviser managed Transamerica Flexible Income, and it employed a different investment program. The performance set forth prior to that date is attributable to the previous sub-adviser.

          The portfolio management discussion of each Fund’s performance for its last fiscal year is attached as Exhibit B.

The Funds’ Fees and Expenses

          Shareholders of the Target Fund and the Destination Fund pay various fees and expenses, either directly or indirectly. The table below shows the fees and expenses that you would pay if you were to buy and hold shares of each Fund. The fees and expenses in the table appearing below are based on the expenses of the Funds for the twelve-month period ended April 30, 2009. The table also shows the pro forma expenses of the combined Destination Fund after giving effect to the Reorganization based on pro forma net assets as of April 30, 2009. Pro forma numbers are estimated in good faith and are hypothetical. Actual expenses may vary significantly.

																Combined
																Transamerica
	Transamerica			Transamerica			Transamerica			Transamerica			Transamerica			Flexible
	Convertible			Flexible			Flexible Income			Convertible			Flexible			Income
	Securities			Income			(Pro Forma)			Securities			Income			(Pro Forma)
	Class A			Class A			Class A			Class B			Class B			Class B
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		4.75	%		4.75	%		4.75	%		N/A			N/A			N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		N/A	(a)		N/A	(a)		N/A	(a)		5.00	%(b)		5.00	%(b)		5.00	%(b)
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(c)
Management Fees		0.75	%		0.71	%		0.71	%		0.75	%		0.71	%		0.71	%
Rule 12b-1 Fees		0.35	%		0.35	%		0.35	%		1.00	%		1.00	%		1.00	%
Other Expenses		0.30	%		0.36	%		0.33	%		0.33	%		0.40	%		0.37	%
Total		1.40	%		1.42	%		1.39	%		2.08	%		2.11	%		2.08	%
Expense Reduction		0.00	%(d)		0.00	%(e)		0.00	%(f)		0.00	%(d)		0.00	%(e)		0.00	%(f)
Net Operating Expenses		1.40	%		1.42	%		1.39	%		2.08	%		2.11	%		2.08	%

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																Combined
							Combined									Transamerica
	Transamerica						Transamerica			Transamerica			Transamerica			Flexible
	Convertible			Transamerica			Flexible Income			Convertible			Flexible			Income
	Securities			Flexible Income			(Pro Forma)			Securities			Income			(Pro Forma)
	Class C			Class C			Class C			Class I			Class I			Class I
Shareholder Fees (fees paid directly from your investment)
Maximum sales charge (load) imposed on purchases (as a % of offering price)		N/A			N/A			N/A			N/A			N/A			N/A
Maximum deferred sales charge (load) (as a % of purchase price or redemption proceeds, whichever is lower)		1.00	%(g)		1.00	%(g)		1.00	%(g)		N/A			N/A			N/A
Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment)(c)
Management Fees		0.75	%		0.71	%		0.71	%		0.75	%		0.71	%		0.71	%
Rule 12b-1 Fees		1.00	%		1.00	%		1.00	%		0.00	%		0.00	%		0.00	%
Other Expenses		0.23	%		0.30	%		0.25	%		0.10	%		0.09	%		0.08	%
Total		1.98	%		2.01	%		1.96	%		0.85	%		0.80	%		0.79	%
Expense Reduction		0.00	%(d)		0.00	%(e)		0.00	%(f)		0.00	%(d)		0.00	%(e)		0.00	%(f)
Net Operating Expenses		1.98	%		2.01	%		1.96	%		0.85	%		0.80	%		0.79	%

(a)	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
(b)	Purchases of Class B shares are subject to declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
(c)	Annual fund operating expenses are based on each Fund’s expenses for the twelve-month period ended April 30, 2009.
(d)	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.35%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.35%, excluding 12b-1 fees and extraordinary expenses.
(e)	Contractual arrangements have been made with TAM, through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the Fund’s total expenses exceed 1.50%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.50%, excluding 12b-1 fees and extraordinary expenses.
(f)	Contractual arrangements have been made with TAM, through March 1, 2011, to waive fees and/or reimburse Fund expenses to the extent that the Fund’s total expenses exceed 1.50%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.50%, excluding 12b-1 fees and extraordinary expenses.
(g)	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.

          The hypothetical example below helps you compare the cost of investing in each Fund. The example assumes that:

• you invest $10,000 in each Fund;

• you reinvest all dividends and distributions without a sales charge;

• your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance); and

• each Fund’s operating expenses remain the same.

          The example also assumes no fees for IRA accounts, if applicable. Costs are the same whether you redeem at the end of any period or not, except where indicated for Class B and Class C shares. Pro forma expenses are included assuming a Reorganization of the Funds. The example is for comparison purposes only and is not a representation of either Fund’s actual expenses or returns, either past or future. Because actual return and expenses will be different, the example is for comparison only.

If the shares are redeemed at the end of each period:

	Transamerica				Combined Transamerica
Number of years	Convertible		Transamerica		Flexible Income
you own your shares	Securities		Flexible Income		(Pro Forma)
Class A
Year 1	$	611	$	613	$	610
Year 3	$	897	$	903	$	894
Year 5	$	1,204	$	1,214	$	1,199
Year 10	$	2,075	$	2,096	$	2,064
Class B*
Year 1	$	711	$	714	$	711
Year 3	$	952	$	961	$	952
Year 5	$	1,219	$	1,234	$	1,219
Year 10	$	2,237	$	2,266	$	2,237
Class C
Year 1	$	301	$	304	$	299
Year 3	$	621	$	630	$	615
Year 5	$	1,068	$	1,083	$	1,057
Year 10	$	2,306	$	2,338	$	2,285
Class I
Year 1	$	87	$	82	$	81
Year 3	$	271	$	255	$	252
Year 5	$	471	$	444	$	439
Year 10	$	1,049	$	990	$	978

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If the shares are not redeemed:

	Transamerica				Combined Transamerica
Number of years	Convertible		Transamerica		Flexible Income
you own your shares	Securities		Flexible Income		(Pro Forma)
Class B*
Year 1	$	211	$	214	$	211
Year 3	$	652	$	661	$	652
Year 5	$	1,119	$	1,134	$	1,119
Year 10	$	2,237	$	2,266	$	2,234
Class C
Year 1	$	201	$	204	$	199
Year 3	$	621	$	630	$	615
Year 5	$	1,068	$	1,083	$	1,057
Year 10	$	2,306	$	2,338	$	2,285

* Examples for Class B shares assume conversion to Class A shares 8 years after purchase.

REASONS FOR THE PROPOSED REORGANIZATION

          The Board of the Target Fund, including its Independent Directors, have unanimously determined that the proposed Reorganization would be in the best interests of the Target Fund and would not dilute the interests of the existing shareholders of the Target Fund. The Board of the Destination Fund, including the Independent Trustees, have unanimously determined that the Reorganization would be in the best interests of the Destination Fund and would not dilute the interests of the existing shareholders of the Destination Fund. Each Board believes that the proposed Reorganization will be advantageous to the shareholders of the Fund it oversees. In determining whether to approve the Reorganization, the Board Members considered the potential impact of the proposed Reorganization on the Funds’ shareholders and a variety of related factors, including, among others:

General Considerations

• The Board Members considered that the Reorganization presents an opportunity for the shareholders of the Target Fund to become investors in a combined fund that has a larger asset size without the obligation to pay commissions or other transaction costs that a fund normally incurs when purchasing securities. The Board Members considered TAM’s belief that this opportunity may give the combined Destination Fund the ability to diversify further its holdings and effect larger portfolio trading transactions, for the benefit of shareholders.

• The Board Members considered that the Reorganization could eliminate any confusion in the marketplace caused by having two funds with similar investment mandates and enhance the potential for the combined Destination Fund to achieve growth in assets. The Board Members noted that TAM believes that the combined Destination Fund may be better positioned to attract assets than the Target Fund, and that the larger size of the combined Destination Fund may offer the potential for greater economies of scale by enabling the combined Destination Fund to obtain better net prices on securities trades and by reducing per share expenses as fixed expenses are shared over a larger asset base.

• The Board Members considered that the Reorganization could eliminate certain redundancies and inefficiencies in the Transamerica fund complex product line offerings, which could strengthen TAM’s ability to pursue investment and marketing opportunities on behalf of the Transamerica funds. The Board Members also considered that the Reorganization is one of a number of reorganizations and other initiatives recently approved by the Board Members of the Transamerica funds. The Board Members noted that the initiatives are designed to streamline the Transamerica fund complex, to promote operating efficiencies, and to result in a more cohesive fund platform.

115

Fees and Expenses

• The Board Members considered that the pro forma gross expense ratio of the combined Destination Fund is expected to be lower for Class I shares of the combined Destination Fund as compared to the corresponding class of the Target Fund. The Board Members also considered that the pro forma gross expense ratios of the combined Destination Fund are expected to be higher for Class A shares, Class B shares and Class C shares of the combined Destination Fund as compared to the corresponding classes of the Target Fund. The Board Members considered that TAM has contractually undertaken through March 1, 2011 to waive fees and/or reimburse expenses on behalf of the Destination Fund, to the extent that the total operating expenses of Class A, Class B, Class C or Class I of the Destination Fund exceed certain operating expense levels.

• The Board Members considered that, given the anticipated costs and benefits of the Reorganization, the expenses associated with the preparation, printing and mailing of any shareholder communications, including this Information Statement/Prospectus, and any regulatory filings in connection with the Reorganization, would be shared by TAM, and, subject to certain limits, the Target Fund and the Destination Fund.

Investment Performance

• The Board Members noted that the performance of the Destination Fund was higher than the Target Fund’s performance for the 1-, 3- and 5-year periods ended February 28, 2009.

Tax

• The Board Members considered the expected tax-free nature of the Reorganization for U.S. federal income tax purposes.

Investment Program

• The Board Members considered the investment objectives and policies of the Destination Fund and their compatibility with those of the Target Fund.

• The Board Members considered that TAM is the adviser and TIM is the sub-adviser to the Target Fund and the Destination Fund.

Other Considerations

• The Board Members considered the terms and conditions of the Agreement and Plan of Reorganization.

• The Board Members considered that the portfolio managers of the combined Destination Fund may conclude that a significant number of holdings of the Target Fund may not be consistent with the combined Destination Fund’s long-term investment strategy, and may dispose of such positions, but that TAM represented that portfolio transition should not have a material adverse effect on the Funds and their shareholders.

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CAPITALIZATION

     The following table sets forth the capitalization of the Target Fund and the Destination Fund as of August 7, 2009 and the pro forma combined capitalization of the combined Destination Fund as if the Reorganization had occurred on that date. If the Reorganization is consummated, the actual exchange ratios on the Closing Date may vary from the exchange ratios used in the computation below. This is due to changes in the market value of the portfolio securities of the Funds between August 7, 2009 and the Closing Date, changes in the amount of undistributed net investment income and net realized capital gains of the Funds during that period resulting from income and distributions, and changes in the accrued liabilities of the Funds during the same period.

	Transamerica				Transamerica Flexible			Pro Forma
	Convertible		Transamerica		Income Pro Forma			Transamerica Flexible
	Securities		Flexible Income		Adjustments			Income
Net Assets (000’s)
Class A	$	12,061	$	18,549				$	30,610
Class B	$	2,427	$	7,998				$	10,425
Class C	$	5,844	$	8,710				$	14,555
Class I	$	49,490	$	119,879				$	169,369
Net Asset Value Per Share
Class A	$	8.10	$	8.02	$	(8.10	)	$	8.02
Class B	$	8.04	$	8.02	$	(8.04	)	$	8.02
Class C	$	8.00	$	8.00	$	(8.00	)	$	8.00
Class I	$	8.11	$	8.05	$	(8.11	)	$	8.05
Shares Outstanding (000’s)
Class A		1,489		2,313		16			3,818
Class B		302		997		1			1,300
Class C		730		1,089					1,819
Class I		6,102		14,891		45			21,038

     It is impossible to predict with any certainty how many shares of the Destination Fund will actually be received and distributed by your Target Fund on the Closing Date. The foregoing table should not be relied upon to determine the amount of Destination Fund shares that will actually be received and distributed.

ADDITIONAL INFORMATION

     For information relating to each Fund and the Reorganization, including tax capital loss carryforwards, the tax status of the Reorganization, a comparison of the fundamental investment policies of the Funds, how to buy, sell or exchange Fund shares, how each Fund values its securities, financial highlights information for each Fund and ownership of shares of the Funds, please see the sections immediately following the discussion of this Reorganization.

117

OTHER IMPORTANT INFORMATION
CONCERNING THE REORGANIZATIONS

Tax Capital Loss Carryforwards & Portfolio Securities

     Federal income tax law permits a regulated investment company to carry forward its net capital losses for a period of up to eight taxable years. Each Target Fund is presently entitled to net capital loss carryforwards for federal income tax purposes in the amounts set forth below. Certain Target Funds currently hold assets with significant net unrealized losses. Each Reorganization may result in limitations on the applicable Destination Fund’s ability to use carryforwards of the corresponding Target Fund and unrealized capital losses inherent in the tax basis of the assets acquired. Those limitations, imposed by Section 382 of the Code, will apply if the shareholders of the Target Fund own less than 50% of the corresponding Destination Fund immediately after the applicable Reorganization, and will be imposed on an annual basis. Certain Reorganizations may result in limitations on the applicable Destination Fund’s ability to use its own capital loss carryforwards (or, in the case of Transamerica Diversified Equity, the capital loss carryforwards of Transamerica Premier Diversified Equity Fund) that originated prior to the Reorganization and on the applicable Destination Fund’s ability to use net unrealized losses inherent in the tax basis of assets that it held prior to the Reorganization. Those limitations, imposed by Section 382 of the Code, will apply if the shareholders of the Destination Fund own less than 50% of the Destination Fund immediately after the applicable Reorganization, and will be imposed on an annual basis. Losses in excess of the limitation may be carried forward, subject to the overall eight-year limit. The annual Section 382 limitation for periods following a Reorganization that is subject to such a limitation generally will equal the product of the net asset value of the applicable Target Fund or Destination Fund, as applicable, immediately prior to the Reorganization and the “long-term tax-exempt rate,” published by the Internal Revenue Service (“IRS”), in effect at the time of the Reorganization.

     As of December 31, 2008, the Target Funds had the following unused capital loss carryforwards:

Fund	Expiring in 2009		Expiring in 2010		Expiring in 2011		Expiring in 2012		Expiring in 2013		Expiring in 2014		Expiring in 2015		Expiring in 2016		Total
Transamerica Premier Balanced Fund		—		—		—		—		—		—		—		—	$	0
Transamerica Value Balanced		—		—		—		—		—		—		—	$	3,593,664	$	3,593,664
Transamerica Premier Diversified Equity Fund		—		—		—		—		—		—		—		—	$	0
Transamerica Premier Institutional Diversified Equity Fund		—		—		—		—		—		—		—		—	$	0
Transamerica Science & Technology		—		—		—		—		—		—		—	$	503,939	$	503,939
Transamerica Templeton Global	$	33,613,381	$	205,202,944	$	57,944,467		—		—		—		—		—	$	296,760,792
Transamerica Premier Equity Fund		—		—		—		—		—		—		—	$	72,430,260	$	72,430,260
Transamerica Premier Institutional Equity Fund		—		—		—		—		—		—		—	$	8,387,271	$	8,387,271
Transamerica Premier Focus Fund		—		—		—		—		—		—		—	$	2,363,260	$	2,363,260
Transamerica Premier Growth Opportunities Fund		—		—		—		—		—		—		—	$	11,348,518	$	11,348,518
Transamerica Convertible Securities		—		—		—		—		—		—		—	$	17,337,782	$	17,337,782
As of December 31, 2008, the Destination Funds had the following unused capital loss carryforwards:
	Expiring in		Expiring in		Expiring in		Expiring		Expiring		Expiring in		Expiring in		Expiring in
Fund	2009		2010		2011		in 2012		in 2013		2014		2015		2016		Total
Transamerica Growth Opportunities	$	99,198,407	$	4,618,369	$	7,347,066		—		—		—		—	$	20,294,858	$	131,458,700
Transamerica Balanced		—		—		—		—		—		—		—		—		—
Transamerica Flexible Income		—		—		—		—	$	890,475	$	5,058,097	$	6,945,572	$	34,692,321	$	47,586,465
Transamerica Equity	$	308,383,637	$	94,611,945		—		—		—		—		—	$	52,412,955	$	455,408,537
Transamerica High Yield Bond		—		—	$	1,545,596		—		—		—		—	$	9,181,271	$	10,726,867
Transamerica Focus		—		—		—		—		—		—		—	$	2,253,582	$	2,253,582

     Each applicable Reorganization may affect the use of these loss carryforwards in the following manner:

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     (1) the loss carryforwards of the Target Funds, to the extent utilizable, will benefit the shareholders of the combined Destination Fund, rather than only the shareholders of each applicable Target Fund;

     (2) if limited by the Section 382 rules described above, the amount of a Fund’s capital loss carryforwards (and, potentially, unrealized capital losses, to the extent realized within five years) that can be utilized in any taxable year will be limited to the product of the long-term tax-exempt rate at the time of the Reorganization and the aggregate net asset value of the Fund at the time of Reorganization, in the approximate amounts per year set forth below for each Fund (based on August 7, 2009 data):

Fund	Amount
Transamerica Value Balanced	$	1,232,566
Transamerica Premier Diversified Equity Fund	$	11,187,177
Transamerica Premier Institutional Diversified Equity Fund	$	88,223
Transamerica Science & Technology	$	2,828,849
Transamerica Templeton Global	$	4,481,780
Transamerica Premier Equity Fund	$	20,273,883
Transamerica Premier Institutional Equity Fund	$	3,729,888
Transamerica Premier Focus Fund	$	2,816,811
Transamerica Premier Growth Opportunities Fund	$	4,117,711
Transamerica Convertible Securities	$	3,128,032
Transamerica Balanced	$	4,278,756

     ; and

     (3) unless your Target Fund is Transamerica Premier Diversified Equity Fund, if your Target Fund’s Reorganization closes on a date other than its regular year end, it will cause the Target Fund’s loss carryforwards to expire earlier than the time they otherwise would have expired. Consequently, a significant percentage of one or more Target Fund’s tax capital loss carryforwards may expire unutilized.

     If a Destination Fund or Target Fund has a net unrealized gain inherent in its assets at the time of the applicable Reorganization, then, under certain circumstances, the combined Destination Fund may not offset that gain, to the extent realized within five years of the applicable Reorganization, by a carryforward of pre-Reorganization losses (other than a carryforward or net operating loss of that Destination Fund or Target Fund, as applicable) or, in certain cases, by a net unrealized loss inherent at the time of the applicable Reorganization in the assets of the other Fund involved in the Reorganization.

     By reason of the foregoing rules, you may pay more taxes, or pay taxes sooner, than you otherwise would if your Target Fund’s Reorganization did not occur.

     Since the Reorganizations are not expected to close until November 13, 2009, the capital loss carryforwards and limitations described above may change between now and the completion of the Reorganizations. The ability of each of the Funds to use these losses (even in the absence of the applicable Reorganizations) also depends on factors other than loss limitations, such as the future realization of capital gains or losses.

PORTFOLIO SECURITIES

     If a Reorganization is effected, management will analyze and evaluate the portfolio securities of the Target Fund being transferred to the corresponding Destination Fund. Consistent with each Destination Fund’s investment objective and investment strategies and policies, any restrictions imposed by the Code, and in the best interests of each Destination Fund’s shareholders (including former shareholders of each Target Fund), management will influence the extent and duration to which the portfolio securities of the corresponding Target Fund will be maintained by the Destination Fund. It is possible that there may be dispositions of some of the portfolio securities of certain Target Funds following the Reorganizations. Subject to market conditions at the time of any such disposition, the disposition of the portfolio securities by each combined fund may result in a capital gain or loss. The actual tax consequences of any disposition of portfolio securities will vary depending

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upon the specific security(ies) being sold and the combined Destination Fund’s ability to use any available tax loss carryforwards. The disposition of portfolio securities also may result in significant brokerage expense to the combined Destination Fund.

TERMS OF EACH AGREEMENT AND PLAN OF REORGANIZATION

The Reorganizations

• Each Target Fund will transfer all of its property and assets to the corresponding Destination Fund. In exchange, each Destination Fund will assume all of the liabilities of the corresponding Target Fund and issue shares, as described below.

• The consummation of a particular Reorganization is not contingent on the consummation of any other Reorganization. The Reorganizations are grouped and described together for convenience.

• For each Reorganization involving a Target Fund that is a Transamerica Premier Fund, the Destination Fund will issue a number of its Class I shares or Class P shares to the Target Fund on the Closing Date having a net asset value equal to the aggregate net asset value of such Target Fund’s Institutional Class shares or Investor Class shares, respectively.

• For each Reorganization involving a Target Fund that is a Transamerica Fund, the Destination Fund will issue a number of its Class A shares, Class B shares, Class C shares and -as applicable- Class I shares on the Closing Date having a net asset value equal to the aggregate net asset value of such Target Fund’s Class A shares, Class B shares, Class C shares and -as applicable- Class I shares, respectively.

• Shares of the corresponding class of each Destination Fund will then be distributed on the Closing Date to the corresponding Target Fund’s shareholders in complete liquidation of the Target Fund in proportion to the relative net asset value of their holdings of the applicable class of shares of the Target Fund. Therefore, on the Closing Date, upon completion of the applicable Reorganization, each Target Fund shareholder will hold shares of the corresponding class of the corresponding Destination Fund with the same aggregate net asset value as their holdings of the applicable class of shares of the Target Fund immediately prior to the Reorganization. The net asset value attributable to a class of shares of a Target Fund will be determined using the Target Fund’s valuation policies and procedures and the net asset value attributable to a class of shares of a Destination Fund will be determined using the Destination Fund’s valuation policies and procedures. The portfolio assets of each Target Fund and corresponding Destination Fund are valued using the same valuation policies and procedures.

• Each Target Fund will then be terminated after the Closing Date.

• No sales load, contingent deferred sales charge, commission, redemption fee or other transactional fee will be charged as a result of the Reorganizations.

• Following the Reorganizations, TAM will continue to act as investment adviser to each Destination Fund and TIM will serve as sub-adviser to each Destination Fund. In the case of Transamerica Legg Mason Partners All Cap — to be renamed Transamerica Focus — it is proposed that the sub-adviser be changed from ClearBridge to TIM; shareholder approval of this proposal is the subject of a separate proxy solicitation of shareholders of Transamerica Legg Mason Partners All Cap. In addition, following the Reorganization of Transamerica Templeton Global into Transamerica Diversified Equity, Templeton will not sub-advise the combined Destination Fund.

• The exchange of Target Fund shares for Destination Fund shares in a Reorganization will not result in income, gain or loss being recognized for federal income tax purposes by an exchanging shareholder. The

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Reorganizations generally will not result in the recognition of gain or loss for federal income tax purposes by any Target Fund or Destination Fund.

Agreement and Plan of Reorganization

          Each Reorganization will be undertaken pursuant to an Agreement and Plan of Organization (each, a “Plan”) substantially in the form attached as Exhibit A to this Information Statement/Prospectus and incorporated herein by this reference. The description of the Plans contained herein, which includes the material provisions of the Plans, is qualified in its entirety by the attached copy.

          Determination of Net Asset Value. If a Reorganization is approved, the applicable Destination Fund will deliver to each corresponding Target Fund the number of full and fractional Destination Fund shares of each class with an aggregate net asset value equal to the net asset value of the Target Fund attributable to the corresponding class of the Target Fund’s shares. The net asset value per share of each class of such Destination Fund shall be computed using the Destination Funds’ valuation procedures and the net asset value per share of each class of such Target Fund shall be computed using the Target Funds’ valuation policies and procedures. The number of full and fractional Destination Fund shares shall be determined, with respect to each class, by dividing the value of the Target Fund’s net assets with respect to that class of the Target Fund’s shares by the net asset value of one share of the corresponding class of the Destination Fund’s shares (see Section 1.1 of the form of Plan attached as Exhibit A).

          Conditions to Closing the Reorganization. The obligation of each Fund to consummate a given Reorganization is subject to the satisfaction of certain conditions, including the Fund’s performance of all its obligations under the Plan, the receipt of certain documents and financial statements from the subject Target Fund and the receipt of all consents, orders and permits necessary to consummate the Reorganization (see Sections 6 and 7 of the form of Plan attached as Exhibit A). The consummation of one Reorganization is not contingent on the consummation of any other Reorganization.

          The Funds’ obligations are also subject to the receipt of a favorable opinion of Bingham McCutchen LLP as to the United States federal income tax consequences of the Reorganizations (see Section 8.4 of the form of Plan attached as Exhibit A).

          Termination of a Plan. The Board of Transamerica Premier Funds or the Board of Transamerica Funds may terminate a Plan at any time before the Closing Date, if such Board believes that proceeding with the Plan is inadvisable with respect to the subject Target Fund or Destination Fund. Any such termination will be effective when communicated to the other party (see Section 12 of the form of Plan attached as Exhibit A).

          Expenses of the Reorganizations. The expenses incurred in connection with the Reorganizations will be shared equally by TAM, on the one hand, and, subject to certain limits, the Target Funds and the Destination Funds, on the other, provided that expenses will be paid by the party directly incurring such expenses (without reimbursement by another person) if and to the extent that the payment by another person of such expenses would prevent such party from being treated as a “regulated investment company” under the Code or would prevent the Reorganization from qualifying as a tax-free reorganization (see Section 10.2 of the form of Plan attached as Exhibit A).

TAX STATUS OF THE REORGANIZATIONS

          Each Reorganization is conditioned upon the receipt by Transamerica Premier Funds and Transamerica Funds of an opinion from Bingham McCutchen LLP, counsel to the Funds, substantially to the effect that, for federal income tax purposes:

• The transfer of all of the applicable Target Fund’s assets to the Destination Fund in exchange solely for the issuance of the Destination Fund shares to the Target Fund and the assumption of the Target Fund’s liabilities by the Destination Fund, followed by the distribution of the Destination Fund shares to the Target Fund shareholders in complete liquidation of the Target Fund, will constitute a “reorganization” within the

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	meaning of Section 368(a) of the Code, and each of the Funds will be a “party to a reorganization” within the meaning of Section 368(b) of the Code;
•	No gain or loss will be recognized by the applicable Destination Fund upon receipt of the assets of the corresponding Target Fund and the assumption by such Destination Fund of all of the liabilities of the Target Fund;
•	The tax basis of the assets of the applicable Target Fund in the hands of the corresponding Destination Fund will be the same as the tax basis of such assets in the hands of the Target Fund immediately before the transfer of the assets, increased by the amount of gain (or decreased by the amount of loss), if any, recognized by the Target Fund upon the transfer;
•	The holding period of each asset of the applicable Target Fund in the hands of the corresponding Destination Fund will include the period during which the asset was held by the Target Fund (except where investment activities of the Destination Fund have the effect of reducing or eliminating the holding period with respect to an asset);
•	No gain or loss will be recognized by the applicable Target Fund upon the transfer of its assets to the corresponding Destination Fund in exchange for the Destination Fund shares and the assumption by such Destination Fund of all of the liabilities of the Target Fund, or upon the distribution of the Destination Fund shares by the Target Fund to its shareholders in complete liquidation, except for (1) any gain or loss that may be recognized with respect to contracts subject to Section 1256 of the Code, (2) any gain that may be recognized on the transfer of stock in a “passive foreign investment company” as defined in Section 1297(a) of the Code, or (3) (except in the case of Transamerica Premier Diversified Equity Fund) any other gain or loss that may be required to be recognized as a result of the closing of the Target Fund’s taxable year or upon transfer of an asset regardless of whether the transfer would otherwise be a non-taxable transaction under the Code;
•	No gain or loss will be recognized by the applicable Target Fund shareholders upon the exchange of their Target Fund shares solely for the shares of the corresponding Destination Fund as part of the Reorganization;
•	The aggregate tax basis of the applicable Destination Fund shares received by each shareholder of the corresponding Target Fund in connection with the Reorganization will be the same as the aggregate tax basis of the shares of the Target Fund surrendered in exchange therefor; and
•	The holding period of applicable Destination Fund shares received by a Target Fund shareholder will include the holding period of the shares of the Target Fund that were surrendered in exchange therefor, provided that the shareholder held the Target Fund shares as capital assets on the date of the exchange.

          In rendering such opinion, counsel shall rely upon, among other things, certain facts, assumptions and representations of Transamerica Premier Funds or Transamerica Funds, as applicable, on behalf of the applicable Target Fund, and of Transamerica Funds, on behalf of the applicable Destination Fund.

          No tax ruling has been or will be received from the IRS in connection with each Reorganization. An opinion of counsel is not binding on the IRS or a court, and no assurance can be given that the IRS would not assert, or a court would not sustain, a contrary position.

          Immediately prior to the Reorganization, each Target Fund will declare and pay a dividend, which, together with all previous dividends, is intended to have the effect of distributing to the Target Fund shareholders all of the Target Fund’s investment company taxable income for taxable years ending on or prior to the Closing Date (computed without regard to any deduction for dividends paid), all of its net tax-exempt income and all of its net capital gain, if any, realized in taxable years ending on or prior to the Closing Date (after reduction for any available capital loss carryover). The amount of such distributions to the shareholders of

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each Target Fund is estimated as of November 13, 2009 to be as set forth in the table below. The amounts set forth in the table below are estimates of the applicable Target Fund’s investment company taxable income (computed without regard to any deduction for dividends paid), net tax-exempt income and net capital gain as if its taxable year ended on the Closing Date. Any amount actually distributed to a Target Fund’s shareholders immediately prior to the applicable Reorganization may be higher or lower than the amount set forth in the table below.

	Distribution amount
Fund	(per share)
Transamerica Premier Balanced Fund	$	0.36908
Transamerica Value Balanced	$	0.27387
Transamerica Premier Diversified Equity Fund	$	0.04915
Transamerica Premier Institutional Diversified Equity Fund	$	0.02980
Transamerica Science & Technology	$	0
Transamerica Templeton Global	$	0.28995
Transamerica Premier Equity Fund	$	0.09303
Transamerica Premier Institutional Equity Fund	$	0.06598
Transamerica Premier Focus Fund	$	0
Transamerica Premier Growth Opportunities Fund	$	0
Transamerica Convertible Securities	$	0.33226

Such distributions may result in taxable income to a Target Fund shareholder.

          The foregoing discussion is very general. The foregoing consequences may not apply to certain classes of taxpayers who are subject to special circumstances, such as shareholders who are not citizens or residents of the United States, insurance companies, tax-exempt organizations, financial institutions, dealers in securities or foreign currencies, or persons who hold their shares as part of a straddle or conversion transaction. Except as expressly set forth above, this discussion does not address any state, local or foreign tax consequences of the Reorganizations. You should consult your tax adviser for the particular tax consequences to you of the transaction, including the applicability of any state, local or foreign tax laws.

FUNDAMENTAL INVESTMENT POLICIES OF THE FUNDS

          Each Fund has adopted certain fundamental investment policies which may not be changed without the affirmative vote of the holders of a “majority of the outstanding voting securities” (as defined in the 1940 Act) of the Fund. Under the 1940 Act, the vote of a majority of the outstanding voting securities of a Fund means the affirmative vote of the lesser of (a) 67% or more of the voting power of the voting securities present at the meeting, if the holders of more than 50% of the outstanding voting securities of the Fund are present at the meeting or represented by proxy, or (b) more than 50% of the voting power of the outstanding voting securities of the Fund. The following table lists the fundamental investment restrictions for each Target Fund and each Destination Fund. For a more complete discussion of each Fund’s other investment policies and fundamental and non-fundamental investment restrictions, please see the statement of additional information for this Information Statement/Prospects.

		Transamerica Funds
	Transamerica Premier Funds	(Includes Certain Target Funds and the
	(Includes Target Funds Only)	Destination Funds)
Borrowing	Each Transamerica Premier Fund may not borrow money, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.	Each Transamerica Fund may not borrow money, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.
Senior Securities	Each Transamerica Premier Fund may not issue any senior security, except as permitted under the 1940	Each Transamerica Fund may not issue any senior security, except as permitted under the 1940 Act,

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		Transamerica Funds
	Transamerica Premier Funds	(Includes Certain Target Funds and the
	(Includes Target Funds Only)	Destination Funds)
	Act, and as interpreted, modified or otherwise interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.	and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.
Underwriting	Each Transamerica Premier Fund may not act as an underwriter of securities, within the meaning of the Securities Act of 1933, as amended (the “Securities Act”) except as permitted under the Securities Act and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time. Among other things, to the extent that a Transamerica Premier Fund may be deemed to be an underwriter within the meaning of the Securities Act, each Transamerica Premier Fund may act as an underwriter of securities in connection with the purchase and sale of its portfolio securities in the ordinary course of pursuing its investment objective, investment policies and investment program.	Each Transamerica Fund may not act as an underwriter of securities within the meaning of the Securities Act, except as permitted under the Securities Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time. Among other things, to the extent that a Transamerica Fund may be deemed to be an underwriter within the meaning of the Securities Act, each Transamerica Fund may act as an underwriter of securities in connection with the purchase and sale of its portfolio securities in the ordinary course of pursuing its investment objective, investment policies and investment program.
Real Estate	Each Transamerica Premier Fund may not purchase or sell real estate or any interests therein, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time. Notwithstanding this limitation, a Transamerica Premier Fund may, among other things, (i) acquire or lease office space for its own use, (ii) invest in securities of issuers that invest in real estate or interests therein, (iii) invest in mortgage-related securities and other securities that are secured by real estate or interests therein, or (iv) hold and sell real estate acquired by the portfolio as a result of the ownership of securities.	Each Transamerica Fund may not purchase or sell real estate or any interests therein, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time. Notwithstanding this limitation, a Transamerica Fund may, among other things, (i) acquire or lease office space for its own use; (ii) invest in securities of issuers that invest in real estate or interests therein; (iii) invest in mortgage-related securities and other securities that are secured by real estate or interests therein; or (iv) hold and sell real estate acquired by the fund as a result of the ownership of securities.
Lending	Each Transamerica Premier Fund may make loans only as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.	Each Transamerica Fund may not make loans, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.
Concentration	Each Transamerica Premier Fund may not “concentrate” its investments in a particular industry or group of industries, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time, provided that, without limiting the generality of the foregoing, this limitation will not apply to securities issued or guaranteed as to principal and/or interest by the U.S. government, its agencies or instrumentalities.	Each Transamerica Fund may not “concentrate” its investments in a particular industry or group of industries, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction from time to time, provided that, without limiting the generality of the foregoing, this limitation will not apply to securities issued or guaranteed as to principal and/or interest by the U.S. government, its agencies or instrumentalities.
Commodities	Each Transamerica Premier Fund may not purchase physical commodities or contracts relating to physical commodities, except as permitted under the 1940 Act, and as interpreted or otherwise permitted by regulatory authority having jurisdiction, from time to time.	Each Transamerica Fund may not purchase physical commodities or contracts relating to physical commodities, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

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		Transamerica Funds
	Transamerica Premier Funds	(Includes Certain Target Funds and the
	(Includes Target Funds Only)	Destination Funds)
Diversification	Transamerica Premier Funds Except Transamerica Premier Focus Fund No stated policy. Each Transamerica Premier Fund is currently classified as a diversified fund under the 1940 Act. This means that each such Transamerica Premier Fund may not purchase securities of any one issuer (other than cash, cash items, securities issued or guaranteed by the U.S. government, its agencies or instrumentalities or any certificate of deposit thereof, and securities of other investment companies) if, as a result, with respect to 75% of the value of its total assets, (a) more than 5% of the value of each Transamerica Premier Fund’s total assets would be invested in securities of that issuer, or (b) each Transamerica Premier Fund would hold more than 10% of the outstanding voting securities of that issuer. The 1940 Act requires any change from diversified to non-diversified status of a fund to be approved in advance by fund shareholders.	Transamerica Funds Except Transamerica Legg Mason Partners All Cap and Transamerica Science & Technology Each Destination Fund shall be a “diversified company” as that term is defined in the 1940 Act and as interpreted or modified by regulatory authority having jurisdiction, from time to time. Transamerica Legg Mason Partners All Cap and Transamerica Science & Technology Transamerica Legg Mason Partners All Cap and Transamerica Science & Technology are each currently a “non-diversified company” as that term is defined in the 1940 Act.
	Transamerica Premier Focus Fund
	Transamerica Premier Focus Fund currently operates as a non-diversified fund, but reserves the right to become a diversified fund as defined in the 1940 Act.

BUYING, SELLING AND EXCHANGING OF FUND SHARES

          The following is a comparison of how shareholders may buy, sell and exchange shares of Transamerica Premier Funds and Transamerica Funds and how each Fund determines its net asset value.

		Transamerica Funds
	Transamerica Premier Funds	(Includes Certain Target Funds and the
	(Includes Target Funds Only)	Destination Funds)
Buying Shares	Purchase requests initiated through an automated service that exceed $50,000 per day are not permitted and must be submitted in writing. Fund shares may be purchased by check, by Automatic Investment Plan, by telephone, through an authorized dealer, by the internet, by payroll deduction and by wire transfer. If your check, draft or electronic transfer is returned unpaid by your bank, you will be charged a fee of $20 for each item that has been returned. Transamerica Premier Funds reserves the right to terminate your electronic draft privileges if the drafts are returned unpaid by your bank. Transamerica Premier Funds or its agents may reject a request for purchase of shares at any time, in whole or in part, including any purchase under the exchange privilege.	Investors may purchase shares of the Funds at the “offering price” of the shares, which is the net asset value per share plus any applicable initial sales charge. Purchase requests initiated through an automated service that exceed $50,000 per day are not permitted and must be submitted in writing. Fund shares may be purchased by check, by Automatic Investment Plan, by telephone, through an authorized dealer, by the internet, by payroll deduction and by wire transfer. Class I shares of the Funds are currently primarily offered for investment in certain affiliated funds of funds (also referred to as “strategic asset allocation funds”). Shares of the Funds are also made available to other investors, including institutional investors such as foreign insurers, domestic insurance companies, and their separate accounts, and eligible

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		Transamerica Funds
	Transamerica Premier Funds	(Includes Certain Target Funds and the
	(Includes Target Funds Only)	Destination Funds)
		retirement plans whose recordkeepers or financial service firm intermediaries have entered into agreements with Transamerica Funds or its agents. If your check, draft or electronic transfer is returned unpaid by your bank, you will be charged a fee of $20 for each item that has been returned. Transamerica Funds reserves the right to terminate your electronic draft privileges if the drafts are returned unpaid by your bank. Transamerica Funds or its agents may reject a request for purchase of shares at any time, in whole or in part, including any purchase under the exchange privilege and any purchase request that does not include an investment representative or an approved broker-dealer. To the extent authorized by law, Transamerica Funds and each Fund reserves the right to discontinue offering shares at any time or to cease operating entirely.
Minimum Initial Investment	Investor Class shares: The minimum initial investment (per fund account) must be $1,000 for regular accounts, $250 for IRAs (traditional and Roth) and Coverdell ESAs, $250 for Uniform Gift to Minors (“UGMA”) or Transfer to Minors (“UTMA”) accounts, and $50 for payroll deduction and automatic investment plan accounts. Transamerica Premier Funds reserves the right to change the amount of these minimums from time to time or to waive them in whole or in part. Institutional Class shares: The minimum investment is $250,000. The minimum initial investment may be waived from time to time by Transamerica Premier Funds at its discretion. The minimum initial investment requirements have been waived for wrap programs at broker-dealer firms having applicable selling and wrap agreements with Transamerica Premier Funds and certain qualified retirement plans, excluding IRAs.	Class A, Class B, Class C and Class P shares: The minimum initial investment (per fund account) must be $1,000 for regular accounts, $1,000 for IRAs (traditional and Roth) and Coverdell ESAs, $1,000 for employer-sponsored retirement plans (includes 403(b), SEP and SIMPLE IRA plans), $1,000 for UGMA or UTMA accounts, and $500 for payroll deduction and automatic investment plan accounts. Transamerica Funds reserves the right to change the amount of these minimums from time to time or to waive them in whole or in part. Omnibus accounts maintained on behalf of certain 401(k) and other retirement plans are not subject to these account minimum requirements. The minimums may be waived for certain employer-sponsored retirement plans under which the employee limits his or her salary deferral purchase to one fund account. There are no minimums for “wrap” accounts for the benefit of clients of certain broker-dealers, financial institutions, or financial planners who have entered into arrangements with Transamerica Funds or TCI, and for investments made by a retirement plan described in Section 401(a), 401(k), 401(m), 403(b) or 457 of the Code. Class I shares: No minimum initial investment requirements.
Minimum Subsequent Investment	Investor Class shares: The minimum subsequent investment (per fund account) must be $50 for regular accounts, $50 for IRAs (traditional and Roth) and Coverdell ESAs, $50 for Uniform Gift to Minors (“UGMA”) or Transfer to Minors (“UTMA”) accounts, and $50 (minimum per monthly fund account investment)	Class A, Class B, Class C and Class P shares: The minimum subsequent investment (per fund account) must be $50 for regular accounts, $50 for IRAs (traditional and Roth) and Coverdell ESAs, $50 for employer-sponsored retirement plans (includes 403(b), SEP and SIMPLE IRA plans), $50 for Uniform Gift to Minors (“UGMA”) or Transfer

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		Transamerica Funds
	Transamerica Premier Funds	(Includes Certain Target Funds and the
	(Includes Target Funds Only)	Destination Funds)
	for payroll deduction and automatic investment plan accounts. The minimum subsequent investment requirements have been waived for wrap programs at broker-dealer firms having applicable selling and wrap agreements with Transamerica Premier Funds and certain qualified retirement plans, excluding IRAs. Institutional Class shares: No minimum subsequent investment requirements.	to Minors (“UTMA”) accounts, and $50 (minimum per monthly fund account investment) for payroll deduction and automatic investment plan accounts. Omnibus accounts maintained on behalf of certain 401(k) and other retirement plans are not subject to these account minimum requirements. The minimums may be waived for certain employer-sponsored retirement plans under which the employee limits his or her salary deferral purchase to one fund account. There are no minimums for “wrap” accounts for the benefit of clients of certain broker-dealers, financial institutions, or financial planners who have entered into arrangements with Transamerica Funds or TCI, and for investments made by a retirement plan described in Section 401(a), 401(k), 401(m), 403(b) or 457 of the Code. Class I shares: No minimum subsequent investment requirements.
Selling shares	Selling shares is also referred to as “redeeming” shares. You can redeem your Fund shares on any day the Funds are open for business. Proceeds from the redemption of your Fund shares will usually be sent within three business days after receipt in good order of your request for redemption (unless you request to receive payment by wire or another option described below). However, Transamerica Premier Funds has the right to take up to seven days to pay your redemption proceeds, and may postpone payment under certain circumstances, as authorized by law. In cases where Fund shares have recently been purchased and the purchase money is not yet available, redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply. Fund shares purchased by wire are immediately available and are not subject to the 15 day holding period. Redemption requests greater than $50,000 per day must be submitted in writing. In addition, amounts greater than $50,000 cannot be sent via Automated Clearing House (“ACH”) (check or federal funds wire only). Additionally, requests totaling more than $100,000 must be in writing with an original signature guarantee by all shareholders. The electronic bank link option must be established in advance for payments made electronically to a shareholder’s bank such as ACH or expedited wire redemptions.	Selling shares is also referred to as “redeeming” shares. You can redeem your Fund shares on any day the Funds are open for business. Proceeds from the redemption of your Fund shares will usually be sent within three business days after receipt in good order of your request for redemption (unless you request to receive payment by wire or another option described below). However, Transamerica Funds has the right to take up to seven days to pay your redemption proceeds, and may postpone payment under certain circumstances, as authorized by law. In cases where Fund shares have recently been purchased and the purchase money is not yet available, redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply. Fund shares purchased by wire are immediately available and are not subject to the 15 day holding period. Redemption requests greater than $50,000 per day must be submitted in writing. In addition, amounts greater than $50,000 cannot be sent via Automated Clearing House (“ACH”) (check or federal funds wire only). Additionally, requests totaling more than $100,000 must be in writing with an original signature guarantee by all shareholders. The electronic bank link option must be established in advance for payments made electronically to a shareholder’s bank such as ACH or expedited wire redemptions.
Exchanging Shares	You may request an exchange in writing, by phone or by accessing your account through the internet. You can exchange shares in one Fund for shares of another fund offered in the same prospectus as a Fund.	You may request an exchange in writing, by phone or by accessing your account through the internet. You can exchange shares in one Fund for shares of another fund offered in the same prospectus as the Fund.

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		Transamerica Funds
	Transamerica Premier Funds	(Includes Certain Target Funds and the
	(Includes Target Funds Only)	Destination Funds)
	For Investor Class shares, the minimum exchange to a new fund account is $1,000, unless your account is a UGMA, UTMA, or IRA, in which event it is $250. If you want to exchange between existing fund accounts, the required minimum will be $50. An exchange is treated as a redemption of a Fund’s shares, followed by a purchase of the shares of the fund into which you exchanged. Prior to making exchanges into a fund that you do not own, please read that fund’s prospectus carefully. If you exchange all your Fund shares to a new fund, any active systematic plan that you maintain with Transamerica Premier Funds will also carry over to this new fund unless otherwise instructed. Transamerica Premier Funds reserves the right to modify or terminate the exchange privilege at any time upon 60 days written notice. Transamerica Premier Funds reserves the right to deny any request involving transactions between classes of Fund shares.	For Class A, Class B, Class C and Class P shares, the minimum exchange to a new fund account is $1,000. This minimum is reduced to $500 per fund account if you elect to establish an AIP and invest a minimum of $50 per month, per fund account. If you want to exchange between existing fund accounts, the required minimum will be $50 per fund account. An exchange is treated as a redemption of a Fund’s shares, followed by a purchase of the shares of the fund into which you exchanged. Prior to making exchanges into a fund that you do not own, please read that fund’s prospectus carefully. If you exchange all your Fund shares to a new fund, any active systematic plan that you maintain with Transamerica Funds will also carry over to this new fund unless otherwise instructed. Transamerica Funds reserves the right to modify or terminate the exchange privilege at any time upon 60 days written notice. Transamerica Funds reserves the right to deny any request involving transactions between classes of Fund shares.
Net Asset Value	The net asset value of the Funds is determined on each day the New York Stock Exchange (“NYSE”) is open for business. The net asset value of each Fund is calculated by taking the value of its net assets and dividing by the number of shares of the Fund that are then outstanding. In general, securities and other investments are valued based on market prices at the close of regular trading on the NYSE. Fund securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-dominated foreign securities or ADRs, are valued at the closing price on the exchange or system where the security is principally traded.	The net asset value of the Funds is determined on each day the NYSE is open for business. The net asset value of each Fund is calculated by taking the value of its net assets and dividing by the number of shares of the Fund that are then outstanding. In general, securities and other investments are valued based on market prices at the close of regular trading on the NYSE. Fund securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-dominated foreign securities or ADRs, are valued at the closing price on the exchange or system where the security is principally traded.
Distributions	Each Fund will distribute all or substantially all of its net investment income and net capital gains to its shareholders each year. Although a Fund will not have to pay income tax on amounts it distributes to shareholders, shareholders that are not generally tax-exempt will be taxed on amounts they receive. Shareholders who are not subject to tax on their income, such as qualified retirement accounts and other tax-exempt investors, generally will not be required to pay any tax on distributions. If a Fund declares a dividend in October, November, or December, payable to shareholders of record in such a month, and pays it in January of the following year, shareholders will be taxed on the dividend as if they received it in the year in which it was declared. Each Fund pays its dividend distributions monthly. You normally will be taxed on distributions you receive from a Fund, regardless of whether they are paid to you in cash or are reinvested in additional Fund shares.	Each Fund will distribute all or substantially all of its net investment income and net capital gains to its shareholders each year. Although a Fund will not have to pay income tax on amounts it distributes to shareholders, most shareholders will be taxed on amounts they receive. If a Fund declares a dividend in October, November, or December payable to shareholders of record in such a month, but pays it in the following January, shareholders will be taxed on the dividend as if they received it in the year in which it was declared. Each Fund pays its dividend distributions monthly. If necessary, each Fund may make distributions at other times as well. You normally will be taxed on distributions you receive from a Fund, regardless of whether they are paid to you in cash or are reinvested in additional Fund shares.

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ADDITIONAL INFORMATION ABOUT THE DESTINATION FUNDS

Investment Adviser

          TAM, located at 570 Carillon Parkway, St. Petersburg, Florida 33716, serves as investment adviser for Transamerica Funds. The investment adviser hires investment sub-advisers to furnish investment advice and recommendations and has entered into sub-advisory agreements with each sub-adviser. The investment adviser also monitors the sub-advisers’ buying and selling of portfolio securities and fund administration activities. For these services, TAM is paid investment advisory fees. These fees are calculated on the average daily net assets of each Destination Fund, and are paid at the rates previously shown in this Information Statement/Prospectus.

          TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) and AUSA Holding Company (23%), both of which are indirect wholly owned subsidiaries of AEGON NV. AUSA Holding Company 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.

          TIM is an affiliate of TAM and Transamerica Funds.

          The Destination Funds may rely on an Order from the SEC (Release IC-23379 dated August 5, 1998) that permits Transamerica Funds and its investment adviser, TAM, subject to certain conditions, and without the approval of shareholders to:

(1)	employ a new unaffiliated sub-adviser for a fund pursuant to the terms of a new investment sub-advisory agreement, either as a replacement for an existing sub-adviser or as an additional sub-adviser;
(2)	materially change the terms of any sub-advisory agreement; and
(3)	continue the employment of an existing sub-adviser on sub-advisory contract terms where a contract has been assigned because of a change of control of the sub-adviser.

In such circumstances, shareholders would receive notice and information about the new sub-adviser within ninety (90) days after the hiring of any new sub-adviser.

          As of June 30, 2009, TAM’s assets under management were approximately $37,346,326,030.

Sub-Advisers

          TIM, 11111 Santa Monica Blvd., Suite 820, Los Angeles, California 90025, serves as sub-adviser for the Destination Funds.

          ClearBridge, 620 Eighth Avenue, New York, NY, 10018, currently serves as sub-adviser to Transamerica Legg Mason Partners All Cap. In connection with Reorganization 4, it is being proposed that ClearBridge be replaced by TIM as sub-adviser to the combined fund.

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          Templeton, 500 E. Broward Blvd., Suite 2100, Ft. Lauderdale, FL 33394, serves as co-sub-adviser to Transamerica Templeton Global. In connection with Reorganization 3, Templeton will not sub-advise the combined fund.

          A discussion regarding the basis of the approval by the Board of Transamerica Funds of the advisory arrangements with TIM, ClearBridge and Templeton is available in the Destination Funds’ semi-annual report for the fiscal period ended April 30, 2009.

Distributor and Transfer Agent

          TCI is each Destination Fund’s distributor. Transamerica Fund Services, Inc. (“TFS”) is each Destination Fund’s administrator and transfer agent. Each Destination Fund compensates TCI and TFS for their services. TCI and TFS are affiliates of AEGON USA. Certain officers and Trustees of the Destination Funds are also officers and/or directors of TAM, TFS and TCI.

Disclosure of Portfolio Holdings

          A detailed description of the Destination Fund’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Statement of Additional Information. Each Destination Fund publishes its top ten holdings on its website at www.transamericafunds.com (select “Transamerica Funds”) within two weeks after the end of each month. In addition, each Destination Fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Buying, Selling and Exchanging Shares of Destination Fund Shares

          Buying Shares. Investors may purchase shares of the Destination Funds at the “offering price” of the shares, which is the net asset value per share plus any applicable initial sales charge. Please note that purchase requests initiated through an automated service that exceeds $50,000 per day may be rejected and must be submitted in writing.

          Class I shares of the Destination Funds are currently primarily offered for investment in certain affiliated funds of funds (also referred to as “strategic asset allocation funds”). Class I shares of the Destination Funds are also made available to other investors, including institutional investors such as foreign insurers, domestic insurance companies, and their separate accounts, and eligible retirement plans whose recordkeepers or financial service firm intermediaries have entered into agreements with Transamerica Funds or its agents.

By Check

– Make your check payable and send to Transamerica Fund Services, Inc.

– If you are opening a new account, send your completed application along with your check.

– If you are purchasing shares in an existing account(s), please reference your account numbers(s) and the Destination Fund(s) you wish to invest in. If you do not specify the Destination Fund(s) in which you wish to invest, and your referenced account is invested in one Fund, your check will be deposited into such Fund.

– Redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply.

– Transamerica Funds does not accept money orders, traveler’s checks, starter checks, credit card convenience checks or cash. Cashier checks and third-party checks may be accepted, subject to approval by Transamerica Funds.

By Automatic Investment Plan

– With an Automatic Investment Plan (“AIP”), a level dollar amount is invested monthly and payment is deducted electronically from your bank account. Due to your bank’s requirements, please allow up to 30

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days for your AIP to begin. Investments may be made between the 3rd and 28th of each month only, and will occur on the 15th if no selection is made. Call Customer Service for information on how to establish an AIP or visit the Destination Funds’ website to obtain an AIP request form.

By Telephone

– You may request an electronic transfer of funds from your bank account to your account with Transamerica Funds. The electronic bank link option must be established in advance before Automated Clearing House (“ACH”) purchases will be accepted. Call Customer Service or visit the Destination Funds’ website for information on how to establish an electronic bank link. Due to your bank’s requirements, please allow up to 30 days to establish this option.

Through an Authorized Dealer

– If your dealer has already established your account for you, no additional documentation is needed. Call your dealer to place your order. Transamerica Funds must receive your payment within three business days after your order is accepted.

By the Internet

– You may request an electronic transfer of funds from your bank account to your account with Transamerica Funds. The electronic bank link option must be established in advance before ACH purchases will be accepted. Call Customer Service or visit the Destination Funds’ website for information on how to establish an electronic bank link.

By Payroll Deduction

– You may have money transferred regularly from your payroll to your account with Transamerica Funds. Call Customer Service to establish this deduction.

By Wire Transfer

– You may request that your bank wire funds to your account with Transamerica Funds (note that your bank may charge a fee for such service). You must have an existing account to make a payment by wire transfer. Ask your bank to send your payment to:

Bank of America, NA, Charlotte, NC, ABA# 026009593, Credit: Transamerica Funds Acct # 3600622064, Ref: Shareholder name, fund and account numbers.

– Shares will be purchased at the next determined net asset value after receipt of your wire if you have supplied all other required information.

Other Information

          If your check, draft or electronic transfer is returned unpaid by your bank, you will be charged a fee of $20 for each item that has been returned.

          Transamerica Funds reserves the right to terminate your electronic draft privileges if the drafts are returned unpaid by your bank.

          Transamerica Funds or its agents may reject a request for purchase of shares at any time, in whole or in part, including any purchase under the exchange privilege and any purchase request that does not include an investment representative or an approved broker-dealer. To the extent authorized by law, Transamerica Funds and each of the Destination Funds reserves the right to discontinue offering shares at any time or to cease operating entirely.

          Selling Shares. Selling shares is also referred to as “redeeming” shares. You can redeem your Destination Fund shares at any time.

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          Proceeds from the redemption of your Destination Fund shares will usually be sent within three business days after receipt in good order of your request for redemption (unless you request to receive payment by wire or another option described below). However, Transamerica Funds has the right to take up to seven days to pay your redemption proceeds, and may postpone payment under certain circumstances, as authorized by law. In cases where shares have recently been purchased and the purchase money is not yet available, redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply. Destination Fund shares purchased by wire are immediately available and not subject to the 15 day holding period.

          Please note that redemption requests greater than $50,000 per day must be submitted in writing. In addition, amounts greater than $50,000 cannot be sent via ACH (check or federal funds wire only). Additionally, requests totaling more than $100,000 must be in writing with an original signature guarantee by all shareholders.

          The electronic bank link option must be established in advance for payments made electronically to your bank such as ACH or expedited wire redemptions. Call Customer Service to verify this feature is in place on your account or to obtain information on how to establish the electronic bank link.

          To request your redemption and receive payment by:

Direct Deposit — ACH

– You may request an “ACH redemption” in writing, by phone or by internet access to your account. Payment should usually be received by your bank account 2-4 banking days after your request is received in good order. Transamerica Funds does not charge for this payment option. Certain IRAs and qualified retirement plans may not be eligible via the internet.

Direct Deposit — Wire

– You may request an expedited wire redemption in writing, or by phone. The electronic bank link must be established in advance. Otherwise, an original signature guarantee will be required. Wire redemptions have a minimum of $1,000 per wire. Payment should be received by your bank account the next banking day after your request is received in good order. Transamerica Funds charges $10 for this service. Your bank may charge a fee as well.

Check to Address of Record

– Written Request: Send a letter requesting a withdrawal to Transamerica Funds. Specify the Destination Fund, account number, and dollar amount or number of shares you wish to redeem. Be sure to include all shareholders’ signatures and any additional documents, as well as an original signature guarantee(s) if required. If you are requesting a distribution from an IRA, federal tax withholding of 10% will apply unless you elect otherwise. If you elect to withhold, the minimum tax withholding rate is 10%.

– Telephone or Internet Request: You may request your redemption by phone or internet. Certain IRAs and qualified retirement plans may not be eligible.

Check to Another Party/Address

– This request must be in writing, regardless of amount, signed by all account owners with an original signature guarantee.

Systematic Withdrawal Plan (by Direct Deposit — ACH or Check)

– You can establish a Systematic Withdrawal Plan (“SWP”) either at the time you open your account or at a later date. Call Customer Service for information on how to establish a SWP or visit the Destination Funds’ website to obtain the appropriate form to complete.

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Through an Authorized Dealer

– You may redeem your Destination Fund shares through an authorized dealer (they may impose a service charge). Contact your Registered Representative or call Customer Service for assistance.

Your Request to Sell Your Destination Fund Shares and Receive Payment May Be Subject to:

– The type of account you have and if there is more than one shareholder.

– The dollar amount you are requesting; redemptions over $50,000 must be in writing and those redemptions totaling more than $100,000 require a written request with an original signature guarantee for all shareholders on the account.

– A written request and original signature guarantee may be required if there have been recent changes made to your account (such as an address change) or other such circumstances. For your protection, if an address change was made in the last 10 days, Transamerica Funds requires a redemption request in writing, signed by all account owners with an original signature guarantee.

– When redeeming all shares from an account with an active AIP, your AIP will automatically be stopped. Please contact Customer Service if you wish to re-activate your AIP.

– Each Destination Fund reserves the right to refuse a telephone redemption request if it is believed it is advisable to do so. The telephone redemption option may be suspended or terminated at any time without advance notice.

– Redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply.

– Destination Fund shares will normally be redeemed for cash, although each Destination Fund retains the right to redeem its shares in kind. Please see the statement of additional information of the Destination Funds for more details.

– If you request that a withdrawal check be delivered overnight, a $20 overnight fee will be charged; for Saturday delivery, a $30 overnight fee will be charged.

Please see additional information relating to original signature guarantee later in this prospectus.

Involuntary Redemptions

          Each Destination Fund reserves the right to close your account if the account value falls below the Destination Fund’s minimum account balance, or you are deemed to engage in activities that are illegal (such as late trading) or otherwise believed to be detrimental to the Destination Fund (such as market timing or frequent small redemptions), to the fullest extent permitted by law.

          Exchanging Shares. You may request an exchange in writing, by phone, or by accessing your account through the internet.

– You can exchange shares in one fund for shares in the same class of another fund offered in the same prospectus as the Destination Funds.

– The minimum exchange to a new fund account is $1,000. This minimum is reduced to $500 per fund account if you elect to establish an AIP and invest a minimum of $50 per month, per fund account. If you want to exchange between existing fund accounts, the required minimum will be $50 per fund account.

– An exchange is treated as a redemption of a Destination Fund’s shares, followed by a purchase of the shares of the fund into which you exchanged. Prior to making exchanges into a fund that you do not own, please read the prospectus of that fund carefully.

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– If you exchange all your Destination Fund shares to a new fund, any active systematic plan that you maintain with Transamerica Funds will also carry over to this new fund unless otherwise instructed.

– Transamerica Funds reserves the right to modify or terminate the exchange privilege at any time upon 60 days’ written notice.

– Transamerica Funds reserves the right to deny any exchange request involving transactions between classes of shares. Please review your individual circumstances with your financial professional.

– The minimum exchange amount may be waived with respect to transactions in omnibus accounts maintained on behalf of certain 401(k) and other retirement plans.

          Features and Policies.

Customer Service

          Occasionally, Transamerica Funds experiences high call volume due to unusual market activity or other events that may make it difficult for you to reach a Customer Service Representative by telephone. If you are unable to reach Transamerica Funds by telephone, please consider visiting the Destination Funds’ website at www.transamericafunds.com. You may also send instructions by mail, by fax, or by using the In-Touch line (automated phone system).

Uncashed Checks Issued on Your Account

          If any check Transamerica Funds issues is returned by the Post Office as undeliverable, or remains outstanding (uncashed) for six months, Transamerica Funds reserves the right to reinvest check proceeds back into your account at the net asset value next calculated after reinvestment. If applicable, Transamerica Funds will also change your account distribution option from cash to reinvest. Interest does not accrue on amounts represented by uncashed checks. In case Transamerica Funds is unable to reinvest check proceeds in the original funds that you held, for example, if a fund has been liquidated or is closed to new investments, Transamerica Funds reserves the right to reinvest the proceeds in Transamerica Money Market.

Minimum Dividend Check Amounts

          To control costs associated with issuing and administering dividend checks, Transamerica Funds reserves the right not to issue checks under a specified amount. For accounts with the cash by check dividend distribution option, if the dividend payment total is less than $10, the distribution will be reinvested into the account and no check will be issued.

Minimum Account Balance

          Due to the proportionately higher cost of maintaining customer fund accounts with balances below the stated minimums for each class of shares, Transamerica Funds reserves the right to close such accounts or assess an annual fee on such fund accounts to help offset the costs associated with maintaining the account. Transamerica Funds generally provides a 60-day notification to the address of record prior to assessing a minimum fund account fee, or closing any fund account. The following describes the fees assessed against fund accounts with balances below the stated minimum:

Account Balance (per fund account)	Fee Assessment (per fund account)
If your balance is below $1,000 per fund account	$25 annual fee assessed, until balance reaches $1,000

No fees will be charged on:

– accounts opened within the preceding 12 months

– accounts with an active monthly AIP or payroll deduction ($50 minimum per fund account)

– accounts owned by an individual which, when combined by Social Security Number, have a balance of $5,000 or more

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– accounts owned by individuals in the same household (by address) that have a combined balance of $5,000 or more

– accounts for which Transamerica Funds in its discretion has waived the minimum account balance requirements

– UTMA/UGMA accounts (held at Transamerica Funds)

– State Street Custodial Accounts (held at Transamerica Funds)

– Coverdell ESA accounts (held at Transamerica Funds)

– Omnibus and Network Level 3 accounts

– B-share accounts whose shares have started to convert to A-share accounts (as long as combined value of both accounts is at least $1,000)

Telephone Transactions

          Transamerica Funds and its transfer agent, TFS, are not liable for complying with telephone instructions that are deemed by them to be genuine. Transamerica Funds and TFS will employ reasonable procedures to help ensure telephone instructions are genuine. In situations where Transamerica Funds or TFS reasonably believe they were acting on genuine telephone instructions, you bear the risk of loss. These procedures may include requiring personal identification, providing written confirmation of transactions, and tape recording conversations. Transamerica Funds reserves the right to modify the telephone redemption privilege at any time.

Retirement and ESA State Street Account Maintenance Fees

          Retirement plan and Coverdell ESA State Street accounts are subject to an annual custodial fee of $15 per fund account, with a maximum fee of $30 per Social Security Number. For example, an IRA in two fund accounts would normally be subject to a $30 annual custodial fee. An A-share account which holds shares converted from a B-share account shall be considered as part of the original B share account for purposes of this fee. The fee is waived if the total of the retirement plan and ESA account(s)’ value per Social Security Number is more than $50,000.

Professional Fees

          Your financial professional may charge a fee for his or her services. This fee will be in addition to any fees charged by Transamerica Funds. Your financial professional will answer any questions that you may have regarding such fees.

Signature Guarantee

          An original signature guarantee assures that a signature is genuine so that you are protected from unauthorized account transactions. Notarization is not an acceptable substitute. Acceptable guarantors only include participants in the Securities Transfer Agents Medallion Program (“STAMP2000”). Participants in STAMP2000 may include financial institutions such as banks, savings and loan associations, trust companies, credit unions, broker-dealers, and member firms of a national securities exchange.

          An original signature guarantee is required if any of the following is applicable:

– You request a redemption or distribution transaction totaling more than $100,000 or, in the case of an IRA with a market value in excess of $100,000, you request a custodian to custodian transfer.

– You would like a check made payable to anyone other than the shareholder(s) of record.

– You would like a check mailed to an address which has been changed within 10 days of the redemption request.

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– You would like a check mailed to an address other than the address of record.

– You would like your redemption proceeds wired to a bank account other than a bank account of record.

– You are adding or removing a shareholder from an account.

– You are changing ownership of an account.

– When establishing an electronic bank link, if Transamerica Funds account holder’s name does not appear on the check.

          The Destination Funds reserve the right to require an original signature guarantee under other circumstances or to reject or delay a redemption on certain legal grounds.

          An original signature guarantee may be refused if any of the following is applicable:

– It does not appear valid or in good form.

– The transaction amount exceeds the surety bond limit of the original signature guarantee.

– The guarantee stamp has been reported as stolen, missing or counterfeit.

Employer Sponsored Accounts

          If you participate in an employer sponsored retirement plan and wish to make an allocation change to your current fund selection, you or your financial professional must notify Transamerica Funds by phone or in writing. Please also remember to inform your employer of the change(s) to your fund allocation. Documentation for allocations submitted online or in writing from your employer will be used to allocate your contributions. This documentation will supersede all other prior instructions received from you or your financial professional. (Note: If you perform a partial or complete exchange to a new fund selection, your current fund allocation will remain unchanged for future contributions unless specified otherwise.)

E-Mail Communication

          As e-mail communications may not be secure, and because Transamerica Funds is unable to take reasonable precautions to verify your shareholder and transaction information, Transamerica Funds cannot respond to account-specific requests received via e-mail. For your protection, Transamerica Funds asks that all transaction requests be submitted only via telephone, mail or through the secure link on the Destination Funds’ website.

Reinvestment Privilege

          Within a 90-day period after you sell your Destination Fund shares, you have the right to “reinvest” your money in any fund of the same class. You will not incur a new sales charge if you use this privilege within the allotted time frame. Any contingent deferred sales charge you paid on your Destination Fund shares will be credited to your account. You may reinvest the proceeds of a Class B share sale (less the contingent deferred sales charge) in Class A shares without paying the up-front sales charge. To take advantage of the 90-day reinvestment privilege, a written request must accompany your investment check.

Statements and Reports

          Transamerica Funds will send you a confirmation statement after every transaction that affects your account balance or registration, with the exception of systematic transactions or transactions necessary to assess account fees. Systematic transactions and fees will be shown on your next regularly scheduled quarterly statement. Information regarding these fees are disclosed in the Destination Funds’ prospectus. Please review the confirmation statement carefully and promptly notify Transamerica Funds of any error. Information about

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the tax status of the prior year’s income dividends and capital gains distributions will be mailed to Destination Fund shareholders early each year.

          Please retain your statements. If you require historical statements, Transamerica Funds may charge $10 per statement year up to a maximum of $50 per Social Security Number. Financial reports for the Destination Funds, which include a list of the holdings, will be mailed twice a year to all shareholders.

e-Delivery

          Transamerica Funds offers e-Delivery, a fast and secure way of receiving statements and other shareholder documents electronically. Subscribers to e-Delivery are notified by e-mail when shareholder materials, such as prospectuses, financial transaction confirmations and financial reports, become available on the Destination Funds’ website.

          Once your account is established, visit the Destination Funds’ website at www.transamericafunds.com, choose “Transamerica Funds” and then click on “Manage My Account” for more information and to subscribe. Then, once you have logged in to your account, select the “Electronic Delivery” option and follow the simple enrollment steps provided.

          Share Price. The price at which Destination Fund shares are purchased or redeemed is the net asset value that is next calculated following receipt and acceptance of a purchase order in good order or receipt of a redemption order in good order by the relevant Destination Fund or an authorized intermediary.

          The net asset value of each Destination Fund (or class thereof) is determined on each day the NYSE is open for business. The net asset value is not determined on days when the NYSE is closed (generally New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas). Foreign securities may trade in their primary markets on weekends or other days when a Destination Fund does not price its shares (therefore, the net asset value of a Destination Fund holding foreign securities may change on days when shareholders will not be able to buy or sell shares of the Destination Fund).

          Purchase orders received in good order and accepted, and redemption orders received in good order, before the close of business on the NYSE, usually 4:00 p.m. Eastern Time, receive the net asset value determined as of the close of the NYSE that day (plus or minus applicable sales charges). Purchase and redemption requests received after the NYSE is closed receive the net asset value at the close of the NYSE the next day the NYSE is open.

          Purchase orders for shares of the Transamerica asset allocation funds that are received in good order and accepted before the close of business on the NYSE receive the net asset value determined as of the close of the NYSE that day. For direct purchases, corresponding orders for shares of the underlying constituent funds are priced on the same day that orders for shares of the asset allocation funds are received and accepted. For purchases of shares of the Transamerica asset allocation funds through the National Securities Clearing Corporation, orders for shares of the underlying constituent funds will be placed after the receipt and acceptance of the settled purchase order for shares of the asset allocation funds.

          Net Asset Value. The net asset value of each Destination Fund (or class thereof) is calculated by taking the value of its net assets and dividing by the number of shares of the Destination Fund (or class) that are then outstanding.

          The Board of Transamerica Funds has approved procedures to be used to value the Destination Funds’ securities for the purposes of determining the Destination Funds’ net asset value. The valuation of the securities of the Destination Funds is determined in good faith by or under the direction of the Board. The Board has delegated certain valuation functions for the Destination Funds to TAM.

          In general, securities and other investments are valued based on market prices at the close of regular trading on the NYSE. Destination Fund securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-dominated foreign securities or ADRs, are valued at the closing price on the exchange or system where the security is principally traded. With respect to securities traded on the NASDAQ/NMS, such closing price may be the last reported sale price or the NASDAQ Official Closing Price

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(“NOCP”). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value should be determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales for that day on any exchange or system, a security is valued at the closing bid quotes on the exchange or system where the security is principally traded, or at the NOCP, if applicable. Foreign securities traded on U.S. exchanges are generally priced using last sale price regardless of trading activity. Securities traded over-the-counter are valued at the mean of the last bid and asked prices. The market price for debt obligations is generally the price supplied by an independent third party pricing service approved by the Board of Transamerica Funds, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Investments in securities maturing in 60 days or less may be valued at amortized cost. Foreign securities generally are valued based on quotations from the primary market in which they are traded, and are converted from the local currency into U.S. dollars using current exchange rates. Market quotations for securities prices may be obtained from automated pricing services. Shares of open-end investment companies are generally valued at the net asset value per share reported by that investment company.

          When a market quotation for a security is not readily available (which may include closing prices deemed to be unreliable because of the occurrence of a subsequent event), a valuation committee appointed by the Board of Trustees may, in good faith, establish a value for the security in accordance with fair valuation procedures adopted by the Board. The types of securities for which such fair value pricing may be required include, but are not limited to: foreign securities, where a significant event occurs after the close of the foreign market on which such security principally trades that is likely to have changed the value of such security, or the closing value is otherwise deemed unreliable; securities of an issuer that has entered into a restructuring; securities whose trading has been halted or suspended; fixed-income securities that have gone into default and for which there is no current market value quotation; and securities that are restricted as to transfer or resale. The Destination Funds use a fair value model developed by an independent third party pricing service to price foreign equity securities on days when there is a certain percentage change in the value of a domestic equity security index, as such percentage may be determined by TAM from time to time.

          Valuing securities in accordance with fair value procedures involves greater reliance on judgment than valuing securities based on readily available market quotations. The valuation committee makes fair value determinations in good faith in accordance with Destination Funds’ valuation procedures. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service. There can be no assurance that a Destination Fund could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the Destination Fund determines its net asset value per share.

Distribution Arrangements

          Distribution and Service Plans.

          The Board of Transamerica Funds has adopted a plan pursuant to Rule 12b-1 under the 1940 Act (the “12b-1 Plan”) for Class A, Class B, Class C, and Class P for the Destination Funds. The Rule 12b-1 Plan provides for payments of distribution and service fees, based on annualized percentages of daily net assets, to TCI, broker-dealers, financial intermediaries and others. Under the Rule 12b-1 Plan, the Destination Funds pay distribution and service fees of up to 0.35% for Class A shares, up to 1.00% for Class B shares, up to 1.00% for Class C shares, and up to 0.25% for Class P shares. The fee accrues daily and is based on an annual percentage of the daily average net assets.

          In general, because 12b-1 Plan fees are paid on an ongoing basis, these fees will increase the cost of your investment and may cost more than other types of sales charges.

          Other Distribution or Service Arrangements. TCI engages in wholesaling activities designed to support and maintain, and increase the number of, the financial intermediaries who sell Destination Fund shares. Wholesaling activities include, but are not limited to, recommending and promoting, directly or through intermediaries, Destination Fund shares to financial intermediaries and providing sales training, retail broker support and other services. Such activities are financed by TAM and TCI, and not the Destination Funds.

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          TCI (in connection with, or in addition to, wholesaling services), TAM, TIM and other fund sub-advisers, directly or through TCI, out of their past profits and other available sources, provide cash payments or non-cash compensation to some, but not all, brokers and other financial intermediaries who have sold shares of the Destination Funds or sell shares of other series of Transamerica Funds or render investor services to Destination Fund shareholders. Such payments and compensation are in addition to the sales charges, 12b-1 Plan fees, service fees and other fees that may be paid, directly or indirectly, to such brokers and other financial intermediaries. These arrangements are sometimes referred to as “revenue sharing” arrangements. Revenue sharing is not an expense of the Destination Funds, does not result in increased fund expenses, is not reflected in the fees and expenses sections of the Destination Funds’ prospectus and does not change the price paid by investors for the purchase of a Destination Fund’s shares or the amount received by a shareholder as proceeds from the redemption of fund shares.

          Such additional cash payments may be made to brokers and other financial intermediaries that provide services to the Destination Funds and/or shareholders in the Destination Fund, including (without limitation) shareholder servicing, marketing support and/or access to sales meetings, sales representatives and management representatives of the broker or other financial intermediaries. Cash compensation may also be paid to brokers and other financial intermediaries for inclusion of a Destination Fund on a sales list, including a preferred or select sales list, in other sales programs, or as an expense reimbursement or compensation in cases where the broker or other financial intermediary provides services to fund shareholders. To the extent permitted by applicable law, TCI and other parties may pay or allow other incentives and compensation to brokers and other financial intermediaries. TCI and the other parties making these payments generally assess the advisability of continuing making these payments periodically.

          These cash payments may take a variety of forms, including (without limitation) reimbursement of ticket charges, additional compensation for sales, “trail” fees for shareholder servicing and maintenance of investor accounts, and finder’s fees that vary depending on the fund or share class and the dollar amount of shares sold. Revenue sharing payments can be calculated: (i) as a percentage of gross or net sales; (ii) as a percentage of gross or net assets under management; and/or (iii) as a fixed or negotiated dollar amount.

          As of December 31, 2008, TCI had such revenue sharing arrangements, with over 25 brokers and other financial intermediaries, of which some of the more significant include: Compass Group, Hantz Financial Services, Merrill Lynch, Morgan Stanley, Natcity Investments, Inc., PNC Financial Services Group, CUNA, CUSO, Eagle One, Fintegra, InterSecurities, Inc., Morgan Keegan, Transamerica Financial Advisors, World Group Securities, Raymond James Financial Services, Raymond James and Associates, LPL Financial, CCO Investments, CitiGroup/Smith Barney, UBS Financial, U.S. Bancorp and Wachovia Securities.

          In addition, while TCI typically pays most of the sales charge applicable to the sale of Destination Fund shares to brokers and other financial intermediaries through which purchases are made, TCI may, on occasion, pay the entire sales charge.

          From time to time, TCI, its affiliates and/or TAM and/or fund sub-advisers may also pay non-cash compensation to brokers and other financial intermediaries and their sales representatives in the form of, for example: (i) occasional gifts; (ii) occasional meals, tickets or other entertainment; and/or (iii) sponsorship support of broker marketing events. For example, representatives of TCI visit brokers and other financial intermediaries and their sales representatives on a regular basis to educate them about the Destination Funds and to encourage the sale of Destination Fund shares to their clients. The costs and expenses associated with these efforts may include travel, lodging, sponsorship at educational seminars, meetings and conferences, entertainment and meals to the extent permitted by law.

          The non-cash compensation to sales representatives and compensation or reimbursement received by brokers and other financial intermediaries through sales charges, other fees payable from the Destination Funds, and/or revenue sharing arrangements for selling shares of the Destination Funds may be more or less than the overall compensation or reimbursement on similar or other products and may influence your broker or other financial intermediary to present and recommend the Destination Funds over other investment options available in the marketplace. In addition, depending on the arrangements in place at any particular time, your broker or other financial intermediary may have a financial incentive for recommending a particular class of Destination

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Fund shares over other share classes. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your sales person to recommend the Destination Fund over another investment.

          Shareholders may obtain more information about these arrangements, including the conflicts of interests that such arrangements may create, from their brokers and other financial intermediaries, and should so inquire if they would like additional information. A shareholder may ask his/her broker or financial intermediary how he/she will be compensated for investments made in the Destination Funds.

          Although a Destination Fund may use financial firms that sell Destination Fund shares to effect transactions for the Destination Fund’s portfolio, the Destination Fund and its investment adviser or sub-adviser will not consider the sale of Destination Fund shares as a factor when choosing financial firms to effect those transactions.

Distributions and Taxes

          Taxes on Distributions in General. Each Destination Fund will distribute all or substantially all of its net investment income and net capital gains to its shareholders each year. Although a Destination Fund will not have to pay income tax on amounts it distributes to shareholders, most shareholders will be taxed on amounts they receive. If a Destination Fund declares a dividend in October, November, or December payable to shareholders of record in such a month, and pays it in the following January, shareholders will be taxed on the dividend as if they received it in the year in which it was declared.

          Each Destination Fund pays dividend distributions in accordance with its normal distribution schedule. If necessary, each Destination Fund may make distributions at other times as well.

          You normally will be taxed on distributions you receive from a Destination Fund, regardless of whether they are paid to you in cash or are reinvested in additional Destination Fund shares.

          Current U.S. federal income tax law generally provides for a maximum tax rate for individual taxpayers of 15% on long-term capital gains and on qualified dividend income. These rates do not apply to corporate taxpayers or certain non-U.S. investors. The following are guidelines for how certain distributions by a Destination Fund are generally taxed to individual taxpayers:

– Distributions of net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) will be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets).

– Distributions designated by a Destination Fund as “qualified dividend income” will also be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets). Qualified dividend income generally is income derived from dividends from U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that a Destination Fund receives in respect of stock of certain foreign corporations will be qualified dividend income if that stock is readily tradable on an established U.S. securities market.

– Other distributions generally will be taxed at the ordinary income tax rate applicable to the shareholder.

          A portion of the dividends received from a Destination Fund (but none of the Destination Fund’s capital gain distributions) may qualify for the dividends-received deduction for corporate shareholders.

          Each Destination Fund in which you invest will send you a tax report annually summarizing the amount of and the tax aspects of your distributions.

          If you buy shares of a Destination Fund shortly before it makes a distribution, the distribution will be taxable to you even though it may actually be a return of a portion of your investment. This is known as “buying a dividend.”

          Investors who invest through tax-deferred accounts, such as IRAs, 403(b) accounts, and qualified retirement plans, will ordinarily not be subject to tax until a distribution is made from the account, at which time such distribution is generally taxed as ordinary income. These accounts are subject to complex tax rules and a

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tax-deferred account investor should consult their tax advisers regarding their investments in a tax-deferred account.

          You must provide your taxpayer identification number to a Destination Fund along with certifications required by the IRS upon your investment in that Destination Fund’s shares.

          Taxes on the Sale or Exchange of Shares. If you sell shares of a Destination Fund or exchange them for shares of another fund, you generally will have a capital gain or loss, which generally will be a long-term capital gain or loss if you held the shares for more than one year; otherwise it will generally be a short-term capital gain or loss. Any loss recognized on shares held for six months or less will be treated as a long-term capital loss to the extent of any amounts treated as distributions of long-term capital gain that were received with respect to the shares, including distributions of net capital gain and any amounts credited to you as undistributed capital gain.

          Any gain or loss on the sale or exchange of shares is computed by subtracting your tax basis in the shares from the redemption proceeds in the case of a sale or the value of the shares received in the case of an exchange. Because your tax basis depends on the original purchase price and on the price at which any dividends may have been reinvested, you should be sure to keep account statements so that you or your tax return preparer will be able to determine whether a sale will result in a taxable gain or loss.

          Withholding Taxes. The Destination Funds may be required to apply backup withholding of U.S. federal income tax at the fourth lowest tax rate applicable to unmarried individuals (currently, 28%) on all distributions payable to you if you fail to provide the Destination Funds with your correct taxpayer identification number or to make required certifications, or if you have been notified by the IRS that you are subject to backup withholding. Backup withholding is not an additional tax, but is a method by which the IRS ensures that it will collect taxes otherwise due. Any amounts withheld may be credited against your U.S. federal income tax liability.

          Non-Resident Alien Withholding. If you are a non-U.S. investor, you must provide a U.S. mailing address to establish an account unless your broker-dealer firm submits your account through the National Securities Clearing Corporation. Your broker-dealer will be required to submit a foreign certification form. Investors changing a mailing address to a non-U.S. address will be required to have a foreign certification form completed by their broker-dealer and returned to us before future purchases can be accepted. Shareholders that are not U.S. investors under the federal tax laws may be subject to U.S. withholding taxes on certain distributions and are generally subject to U.S. tax certification requirements. Additionally, you will need to provide the appropriate tax form (generally, Form W-8BEN) and documentary evidence if you are not a U.S. citizen or U.S. resident alien.

          Other Tax Information. This tax discussion is for general information only. In addition to federal income taxes, a Destination Fund shareholder may be subject to state, local or foreign taxes on payments received from, and investments made in shares of, a Destination Fund. More information is provided in the statement of additional information of the Destination Funds. You should also consult your own tax adviser for information regarding all tax consequences applicable to your investments in Transamerica Funds.

Market Timing/Excessive Trading

          Some investors try to profit from various short-term or frequent trading strategies known as market timing. Examples of market timing include switching money into funds when their share prices are expected to rise and taking money out when their share prices are expected to fall, and switching from one fund to another and then back again after a short period of time. As money is shifted in and out, a fund may incur expenses for buying and selling securities. Excessive purchases, redemptions or exchanges of fund shares may disrupt portfolio management, hurt fund performance and drive fund expenses higher. For example, a fund may be forced to liquidate investments as a result of short-term trading and incur increased brokerage costs or realize taxable capital gains without attaining any investment advantage. These costs are generally borne by all shareholders, including long-term investors who do not generate these costs.

          The Board of Transamerica Funds has approved policies and procedures that are designed to discourage market timing or excessive trading which include limitations on the number of transactions in

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Destination Fund shares. If you intend to engage in such practices, please do not purchase shares of any of the Destination Funds. Each Destination Fund reserves the right to reject any request to purchase shares, including purchases in connection with an exchange transaction, which the Destination Fund reasonably believes to be in connection with market timing or excessive trading. The Destination Funds generally will consider four or more exchanges between funds, or frequent purchases and redemptions having a similar effect, during any rolling 90-day period to be evidence of market timing or excessive trading by a shareholder or by accounts under common control (for example, related shareholders, or a financial adviser with discretionary trading authority over multiple accounts). However, the Destination Funds reserve the right to determine less active trading to be “excessive” or related to market timing.

          While the Destination Funds discourage market timing and excessive short-term trading, the Destination Funds cannot always recognize or detect such trading, particularly if it is facilitated by financial intermediaries or done through Omnibus Account arrangements. TCI has entered into agreements with intermediaries requiring the intermediaries to provide certain information to help identify harmful trading activity and to prohibit further purchases or exchanges by a shareholder identified as having engaged in excessive trading. There is no guarantee that the procedures used by financial intermediaries will be able to curtail frequent, short-term trading activity. For example, shareholders who seek to engage in frequent, short-term trading activity may use a variety of strategies to avoid detection, and the financial intermediaries’ ability to deter such activity may be limited by operational and information systems capabilities. Due to the risk that the Destination Funds and financial intermediaries may not detect all harmful trading activity, it is possible that shareholders may bear the risks associated with such activity.

          Further, with respect to Class I shares of the Destination Funds, because such Class I shares may be sold to strategic asset allocation funds, other investors (including institutional investors such as foreign insurers, domestic insurance companies, and their separate accounts), and eligible retirement plans whose recordkeepers or financial service firm intermediaries have entered into agreements with Transamerica Funds or its agents, the Destination Funds’ policies and procedures to discourage market timing or excessive trading are enforced by those entities, as appropriate, rather than the Destination Funds.

          Orders to purchase, redeem or exchange shares forwarded by certain omnibus accounts with Transamerica Funds will not be considered to be market timing or excessive trading for purposes of the policies of Transamerica Funds. However, the market timing and excessive trading policies of these omnibus firms or plans may apply to transactions by the underlying shareholders. Similarly, orders to purchase, redeem or exchange shares forwarded by accounts maintained on behalf of institutional investors or insurers (for example, separate accounts of insurance companies) with respect to their accounts with Transamerica Funds will not be considered to be market timing or excessive trading for purposes of the policies of Transamerica Funds. However, the market timing and excessive trading policies of these investors/insurers (or their accounts) may apply to transactions by persons who, in turn, invest through these investors/insurers (or through their accounts).

Temporary Defensive Strategies

          For temporary defensive purposes, a Destination Fund may, at times, choose to hold some or all of its assets in cash, or to invest that cash in a variety of debt securities. This may be done as a defensive measure at times when desirable risk/reward characteristics are not available in stocks or to earn income from otherwise uninvested cash. When a Destination Fund increases its cash or debt investment position, its income may increase while its ability to participate in stock market advances or declines decrease. Furthermore, when a Destination Fund assumes a temporary defensive position it may not be able to achieve its investment objective.

FINANCIAL HIGHLIGHTS

Transamerica Funds

          The following tables show the financial performance of Class A, Class B, and Class C of Transamerica Balanced for the past five fiscal years and for the six-month period ended April 30, 2009. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Balanced (assuming reinvestment of all distributions). This information through the period ended

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October 31, 2008 has been derived from financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Annual Report for Transamerica Funds. The Annual and Semi-Annual Reports of Transamerica Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Funds”).

For a share outstanding throughout each period

	Transamerica Balanced
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	16.44		$	25.70		$	22.05		$	19.90		$	18.53		$	17.43
Investment operations
Net investment income(a)		0.16			0.28			0.17			0.12			0.15			0.14
Net realized and unrealized gain (loss) on investments		0.31			(8.64	)		3.62			2.12			1.41			1.08
Total from investment operations		0.47			(8.36	)		3.79			2.24			1.56			1.22
Distributions
Net investment income		(0.17	)		(0.24	)		(0.14	)		(0.09	)		(0.19	)		(0.12	)
Net realized gains on investments		(1.03	)		(0.66	)		—			—			—			—
Total distributions		(1.20	)		(0.90	)		(0.14	)		(0.09	)		(0.19	)		(0.12	)
Net asset value
End of period/year	$	15.71		$	16.44		$	25.70		$	22.05		$	19.90		$	18.53
Total return(b)		3.37	%(c)		(33.55	)%		17.28	%		11.27	%		8.41	%		7.03	%
Net assets end of period/year (thousands)	$	51,144		$	49,917		$	61,565		$	55,547		$	62,440		$	72,997
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.72	%(d)		1.52	%		1.56	%		1.58	%		1.59	%		1.70	%
Before reimbursement/fee waiver		1.72	%(d)		1.52	%		1.56	%		1.58	%		1.59	%		1.70	%
Net investment income, to average net assets (e)		2.11	%(d)		1.27	%		0.73	%		0.57	%		0.75	%		0.76	%
Portfolio turnover rate		63	%(c)		52	%		52	%		51	%		27	%		107	%

	Transamerica Balanced
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	16.37		$	25.58		$	21.98		$	19.88		$	18.47		$	17.39
Investment operations
Net investment income(a)		0.10			0.13			0.04			—	(f)		0.04			0.04
Net realized and unrealized gain (loss) on investments		0.30			(8.58	)		3.60			2.12			1.40			1.08
Total from investment operations		0.40			(8.45	)		3.64			2.12			1.44			1.12
Distributions
Net investment income		(0.11	)		(0.10	)		(0.04	)		(0.02	)		(0.03	)		(0.04	)
Net realized gains on investments		(1.03	)		(0.66	)		—			—			—			—
Total distributions		(1.14	)		(0.76	)		(0.04	)		(0.02	)		(0.03	)		(0.04	)
Net asset value
End of period/year	$	15.63		$	16.37		$	25.58		$	21.98		$	19.88		$	18.47
Total return(b)		2.92	%(c)		(33.95	)%		16.57	%		10.65	%		7.80	%		6.44	%
Net assets end of period/year (thousands)	$	22,921		$	32,469		$	96,573		$	118,286		$	142,479		$	170,630

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	Transamerica Balanced
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.45	%(d)		2.15	%		2.14	%		2.15	%		2.14	%		2.26	%
Before reimbursement/fee waiver		2.50	%(d)		2.15	%		2.14	%		2.15	%		2.14	%		2.26	%
Net investment income, to average net assets (e)		1.39	%(d)		0.59	%		0.15	%		0.01	%		0.20	%		0.19	%
Portfolio turnover rate		63	%(c)		52	%		52	%		51	%		27	%		107	%

	Transamerica Balanced
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	16.30		$	25.50		$	21.91		$	19.82		$	18.45		$	17.39
Investment operations
Net investment income (loss)(a)		0.11			0.15			0.04			0.01			0.04			(0.01	)
Net realized and unrealized gain (loss) on investments		0.32			(8.56	)		3.59			2.10			1.41			1.11
Total from investment operations		0.43			(8.41	)		3.63			2.11			1.45			1.10
Distributions
Net investment income		(0.13	)		(0.13	)		(0.04	)		(0.02	)		(0.08	)		(0.04	)
Net realized gains on investments		(1.03	)		(0.66	)		—			—			—			—
Total distributions		(1.16	)		(0.79	)		(0.04	)		(0.02	)		(0.08	)		(0.04	)
Net asset value
End of period/year	$	15.57		$	16.30		$	25.50		$	21.91		$	19.82		$	18.45
Total return(b)		3.09	%(c)		(33.92	)%		16.61	%		10.64	%		7.85	%		6.33	%
Net assets end of period/year (thousands)	$	16,077		$	17,719		$	32,569		$	36,750		$	43,276		$	53,990
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.28	%(d)		2.08	%		2.11	%		2.12	%		2.13	%		2.28	%
Before reimbursement/fee waiver		2.28	%(d)		2.08	%		2.11	%		2.12	%		2.13	%		2.28	%
Net investment income (loss), to average net assets(e)		1.55	%(d)		0.69	%		0.18	%		0.03	%		0.21	%		(0.08	)%
Portfolio turnover rate		63	%(c)		52	%		52	%		51	%		27	%		107	%

          The following tables show the financial performance of Class A, Class B, and Class C of Transamerica Value Balanced for the past five fiscal years and for the six-month period ended April 30, 2009. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Value Balanced (assuming reinvestment of all distributions). This information through the period ended October 31, 2008 has been derived from financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Annual Report for Transamerica Funds. The Annual and Semi-Annual Reports for Transamerica Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Funds”).

For a share outstanding throughout each period

	Transamerica Value Balanced
	Class A
	April 30, 2009			October 31,			October 31,		October 31,		October 31,		October 31,
	(unaudited)			2008			2007		2006		2005		2004
Net asset value
Beginning of period/year	$	8.91		$	14.38		$	13.30	$	11.95	$	12.11	$	11.49
Investment operations
Net investment income(a)		0.14			0.30			0.28		0.23		0.24		0.18
Net realized and unrealized gain (loss) on investments		(0.49	)		(4.74	)		1.41		1.54		0.69		0.61
Total from investment operations		(0.35	)		(4.44	)		1.69		1.77		0.93		0.79

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	Transamerica Value Balanced
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Distributions
Net investment income		(0.12	)		(0.31	)		(0.23	)		(0.24	)		(0.25	)		(0.17	)
Net realized gains on investments		—			(0.72	)		(0.38	)		(0.18	)		(0.84	)		—
Total distributions		(0.12	)		(1.03	)		(0.61	)		(0.42	)		(1.09	)		(0.17	)
Net asset value
End of period/year	$	8.44		$	8.91		$	14.38		$	13.30		$	11.95		$	12.11
Total return(b)		(3.87	)%(c)		(32.94	)%		13.11	%		15.09	%		7.79	%		6.99	%
Net assets end of period/year (thousands)	$	16,077		$	18,666		$	32,485		$	32,666		$	32,934		$	37,393
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.55	%(d)		1.55	%		1.55	%		1.55	%		1.55	%		1.55	%
Before reimbursement/fee waiver		1.89	%(d)		1.56	%		1.58	%		1.63	%		1.59	%		1.63	%
Net investment income, to average net assets(e)		3.19	%(d)		2.51	%		2.06	%		1.84	%		2.03	%		1.50	%
Portfolio turnover rate		55	%(c)		50	%		42	%		42	%		57	%		122	%

	Transamerica Value Balanced
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	8.88		$	14.32		$	13.25		$	11.91		$	12.07		$	11.46
Investment operations
Net investment income(a)		0.11			0.22			0.19			0.15			0.17			0.10
Net realized and unrealized gain (loss) on investments		(0.49	)		(4.72	)		1.41			1.53			0.68			0.61
Total from investment operations		(0.38	)		(4.50	)		1.60			1.68			0.85			0.71
Distributions
Net investment income		(0.09	)		(0.22	)		(0.15	)		(0.16	)		(0.17	)		(0.10	)
Net realized gains on investments		—			(0.72	)		(0.38	)		(0.18	)		(0.84	)		—
Total distributions		(0.09	)		(0.94	)		(0.53	)		(0.34	)		(1.01	)		(0.10	)
Net asset value
End of period/year	$	8.41		$	8.88		$	14.32		$	13.25		$	11.91		$	12.07
Total return(b)		(4.20	)%(c)		(33.37	)%		12.40	%		14.28	%		7.13	%		6.23	%
Net assets end of period/year (thousands)	$	4,592		$	6,414		$	17,508		$	20,405		$	24,072		$	29,409
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.20	%		2.20	%		2.20	%		2.20	%		2.20	%
Before reimbursement/fee waiver		2.75	%(d)		2.30	%		2.27	%		2.28	%		2.27	%		2.30	%
Net investment income, to average net assets(e)		2.55	%(d)		1.83	%		1.43	%		1.20	%		1.39	%		0.81	%
Portfolio turnover rate		55	%(c)		50	%		42	%		42	%		57	%		122	%

	Transamerica Value Balanced
	Class C
	April 30, 2009			October 31,			October 31,		October 31,		October 31,		October 31,
	(unaudited)			2008			2007		2006		2005		2004
Net asset value
Beginning of period/year	$	8.87		$	14.31		$	13.25	$	11.91	$	12.07	$	11.46
Investment operations
Net investment income(a)		0.11			0.22			0.19		0.15		0.17		0.11
Net realized and unrealized gain (loss) on investments		(0.48	)		(4.72	)		1.41		1.53		0.69		0.60
Total from investment operations		(0.37	)		(4.50	)		1.60		1.68		0.86		0.71

145

	Transamerica Value Balanced
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Distributions
Net investment income		(0.09	)		(0.22	)		(0.16	)		(0.16	)		(0.18	)		(0.10	)
Net realized gains on investments		—			(0.72	)		(0.38	)		(0.18	)		(0.84	)		—
Total distributions		(0.09	)		(0.94	)		(0.54	)		(0.34	)		(1.02	)		(0.10	)
Net asset value
End of period/year	$	8.41		$	8.87		$	14.31		$	13.25		$	11.91		$	12.07
Total return(b)		(4.10	)%(c)		(33.33	)%		12.40	%		14.33	%		7.18	%		6.31	%
Net assets end of period/year (thousands)	$	4,803		$	5,833		$	11,674		$	11,316		$	11,926		$	14,285
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.13	%		2.17	%		2.20	%		2.16	%		2.20	%
Before reimbursement/fee waiver		2.41	%(d)		2.13	%		2.17	%		2.20	%		2.16	%		2.39	%
Net investment income, to average net assets(e)		2.54	%(d)		1.92	%		1.44	%		1.19	%		1.43	%		0.78	%
Portfolio turnover rate		55	%(c)		50	%		42	%		42	%		57	%		122	%

          The following tables show the financial performance of Class A, Class B, Class C, and Class I of Transamerica Science & Technology for the past five fiscal and for the six-month period ended April 30, 2009. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Science & Technology (assuming reinvestment of all distributions). This information through the period ended October 31, 2008 has been derived from financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Funds. The Annual and Semi-Annual Reports for Transamerica Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Funds”).

For a share outstanding throughout each period

	Transamerica Science & Technology
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	2.84		$	5.67		$	3.91		$	3.82		$	3.80		$	3.61
Investment operations
Net investment income (loss)(a)		(0.01	)		(0.04	)		(0.05	)		(0.03	)		0.03			(0.04	)
Net realized and unrealized gain (loss) on investments		0.06			(2.61	)		1.81			0.18			0.02			0.23
Total from investment operations		0.05			(2.65	)		1.76			0.15			0.05			0.19
Distributions
Net investment income		—			—			—			—			(0.03	)		—
Net realized gains on investments		—			(0.18	)		—			(0.06	)		—			—
Total distributions		—			(0.18	)		—			(0.06	)		(0.03	)		—
Net asset value
End of period/year	$	2.89		$	2.84		$	5.67		$	3.91		$	3.82		$	3.80
Total return(b)		1.76	%(c)		(48.18	)%		45.01	%		3.78	%		1.23	%		5.26	%
Net assets end of period/year (thousands)	$	3,839		$	3,778		$	7,874		$	5,616		$	65,423		$	119,985
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.53	%(d)		1.53	%		1.53	%		1.53	%		1.32	%		1.36	%
Before reimbursement/fee waiver		2.23	%(d)		1.70	%		1.77	%		1.67	%		1.32	%		1.36	%
Net investment income (loss), to average net assets(e)		(0.83	)%(d)		(1.02	)%		(1.03	)%		(0.72	)%		0.63	%		(1.12	)%
Portfolio turnover rate		36	%(c)		47	%		66	%		94	%		73	%		41	%

146

	Transamerica Science & Technology
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	2.68		$	5.40		$	3.74		$	3.68		$	3.68		$	3.51
Investment operations
Net investment loss(a)		(0.02	)		(0.07	)		(0.07	)		(0.06	)		(0.02	)		(0.06	)
Net realized and unrealized gain (loss) on investments		0.06			(2.47	)		1.73			0.18			0.02			0.23
Total from investment operations		0.04			(2.54	)		1.66			0.12			—			0.17
Distributions
Net realized gains on investments		—			(0.18	)		—			(0.06	)		—			—
Total distributions		—			(0.18	)		—			(0.06	)		—			—
Net asset value
End of period/year	$	2.72		$	2.68		$	5.40		$	3.74		$	3.68		$	3.68
Total return(b)		1.49	%(c)		(48.56	)%		44.39	%		3.10	%		—	%(j)		4.84	%
Net assets end of period/year (thousands)	$	1,640		$	2,094		$	4,913		$	4,208		$	5,316		$	6,874
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.18	%(d)		2.18	%		2.18	%		2.18	%		2.20	%		1.91	%
Before reimbursement/fee waiver		3.20	%(d)		2.53	%		2.53	%		2.57	%		2.68	%		1.91	%
Net investment loss, to average net assets(e)		(1.48	)%(d)		(1.67	)%		(1.67	)%		(1.58	)%		(0.58	)%		(1.68	)%
Portfolio turnover rate		36	%(c)		47	%		66	%		94	%		73	%		41	%

	Transamerica Science & Technology
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	2.68		$	5.39		$	3.73		$	3.67		$	3.67		$	3.51
Investment operations
Net investment loss(a)		(0.02	)		(0.07	)		(0.07	)		(0.06	)		(0.02	)		(0.07	)
Net realized and unrealized gain (loss) on investments		0.06			(2.46	)		1.73			0.18			0.02			0.23
Total from investment operations		0.04			(2.53	)		1.66			0.12			—			0.16
Distributions
Net realized gains on investments		—			(0.18	)		—			(0.06	)		—			—
Total distributions		—			(0.18	)		—			(0.06	)		—			—
Net asset value
End of period/year	$	2.72		$	2.68		$	5.39		$	3.73		$	3.67		$	3.67
Total return(b)		1.49	%(c)		(48.46	)%		44.50	%		3.11	%		—	%(j)		4.56	%
Net assets end of period/year (thousands)	$	1,259		$	1,417		$	2,799		$	2,045		$	2,779		$	4,089
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.18	%(d)		2.18	%		2.18	%		2.18	%		2.20	%		2.20	%
Before reimbursement/fee waiver		2.74	%(d)		2.31	%		2.36	%		2.35	%		2.65	%		2.60	%
Net investment loss, to average net assets(e)		(1.48	)%(d)		(1.67	)%		(1.63	)%		(1.57	)%		(0.51	)%		(1.94	)%
Portfolio turnover rate		36	%(c)		47	%		66	%		94	%		73	%		41	%

147

	Transamerica Science & Technology
	Class I
	April 30, 2009			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006(g)
Net asset value
Beginning of period/year	$	2.89		$	5.74		$	3.93		$	3.98
Investment operations
Net investment income (loss)(a)		—	(f)		(0.02	)		(0.02	)		(0.01	)
Net realized and unrealized gain (loss) on investments		0.06			(2.65	)		1.83			0.02
Total from investment operations		0.06			(2.67	)		1.81			0.01
Distributions
Net investment income		—			—			—			—
Net realized gains on investments		—			(0.18	)		—			(0.06	)
Total distributions		—			(0.18	)		—			(0.06	)
Net asset value
End of period/year	$	2.95		$	2.89		$	5.74		$	3.93
Total return(b)		2.08	%(c)		(47.93	)%		46.06	%		0.12	%(c)
Net assets end of period/year (thousands)	$	45,789		$	46,222		$	84,206		$	57,642
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.06	%(d)		0.91	%		0.92	%		0.92	%(d)
Before reimbursement/fee waiver		1.06	%(d)		0.91	%		0.92	%		0.92	%(d)
Net investment income (loss), to average net assets(e)		(0.36	)%(d)		(0.41	)%		(0.41	)%		(0.35	)%(d)
Portfolio turnover rate		36	%(c)		47	%		66	%		94	%(c)

          The following tables show the financial performance of Class A, Class B, and Class C of Transamerica Templeton Global for the past five fiscal years and for the six-month period ended April 30, 2009. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Templeton Global (assuming reinvestment of all distributions). This information through the period ended October 31, 2008 has been derived from financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Funds. The Annual and Semi-Annual Reports for Transamerica Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Funds”).

For a share outstanding throughout each period

	Transamerica Templeton Global
	Class A
	April 30, 2009		October 31,		October 31,		October 31,		October 31,		October 31,
	(unaudited)		2008		2007		2006		2005		2004
Net asset value
Beginning of period/year	$	19.63	$	35.83	$	29.28	$	24.68	$	22.57	$	21.41

148

	Transamerica Templeton Global
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Investment operations
Net investment income (loss)(a)		0.12			0.33			0.19			0.15			0.21			(0.07	)
Net realized and unrealized gain (loss) on investments		(0.75	)		(16.19	)		6.70			4.45			2.14			1.23
Total from investment operations		(0.63	)		(15.86	)		6.89			4.60			2.35			1.16
Distributions
Net investment income		(0.18	)		(0.34	)		(0.34	)		—	(f)		(0.24	)		—
Total distributions		(0.18	)		(0.34	)		(0.34	)		—	(f)		(0.24	)		—
Net asset value
End of period/year	$	18.82		$	19.63		$	35.83		$	29.28		$	24.68		$	22.57
Total return(b)		(3.23	)%(c)		(44.68	)%		23.74	%		18.65	%		10.41	%		5.41	%
Net assets end of period/year (thousands)	$	66,649		$	73,721		$	118,738		$	117,367		$	385,504		$	226,517
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.55	%(d)		1.55	%		1.55	%		1.55	%		1.42	%		1.85	%
Before reimbursement/fee waiver		2.10	%(d)		1.61	%		1.63	%		1.62	%		1.42	%		1.85	%
Net investment income (loss), to average net assets(e)		1.30	%(d)		1.13	%		0.59	%		0.55	%		0.85	%		(0.31	)%
Portfolio turnover rate		14	%(c)		28	%		30	%		55	%		79	%		140	%

	Transamerica Templeton Global
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	18.41		$	33.52		$	27.40		$	23.24		$	21.23		$	20.25
Investment operations
Net investment income (loss)(a)		0.05			0.08			(0.02	)		(0.01	)		0.02			(0.20	)
Net realized and unrealized gain (loss) on investments		(0.71	)		(15.14	)		6.28			4.17			1.99			1.18
Total from investment operations		(0.66	)		(15.06	)		6.26			4.16			2.01			0.98
Distributions
Net investment income		—			(0.05	)		(0.14	)		—			—	(f)		—
Total distributions		—			(0.05	)		(0.14	)		—			—	(f)		—
Net asset value
End of period/year	$	17.75		$	18.41		$	33.52		$	27.40		$	23.24		$	21.23
Total return(b)		(3.59	)%(c)		(44.99	)%		22.94	%		17.90	%		9.48	%		4.83	%
Net assets end of period/year (thousands)	$	8,209		$	10,746		$	63,876		$	75,711		$	90,877		$	117,409
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.20	%		2.20	%		2.20	%		2.20	%		2.49	%
Before reimbursement/fee waiver		3.25	%(d)		2.44	%		2.39	%		2.42	%		2.41	%		2.49	%
Net investment income (loss), to average net assets(e)		0.62	%(d)		0.29	%		(0.07	)%		(0.05	)%		0.07	%		(0.93	)%
Portfolio turnover rate		14	%(c)		28	%		30	%		55	%		79	%		140	%

	Transamerica Templeton Global
	Class C
	April 30, 2009		October 31,		October 31,			October 31,			October 31,		October 31,
	(unaudited)		2008		2007			2006			2005		2004
Net asset value
Beginning of period/year	$	18.27	$	33.47	$	27.37		$	23.21		$	21.21	$	20.25
Investment operations
Net investment income (loss)(a)		0.05		0.12		(0.02	)		(0.01	)		0.02		(0.15	)

149

	Transamerica Templeton Global
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net realized and unrealized gain (loss) on investments		(0.70	)		(15.10	)		6.27			4.17			1.99			1.11
Total from investment operations		(0.65	)		(14.98	)		6.25			4.16			2.01			0.96
Distributions
Net investment income		—			(0.22	)		(0.15	)		—			(0.01	)		—
Total distributions		—			(0.22	)		(0.15	)		—			(0.01	)		—
Net asset value
End of period/year	$	17.62		$	18.27		$	33.47		$	27.37		$	23.21		$	21.21
Total return(b)		(3.56	)%(c)		(45.05	)%		22.95	%		17.87	%		9.52	%		4.74	%
Net assets end of period/year (thousands)	$	12,406		$	14,286		$	31,506		$	32,341		$	36,938		$	48,378
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.20	%		2.20	%		2.20	%		2.20	%		2.18	%
Before reimbursement/fee waiver		2.73	%(d)		2.26	%		2.31	%		2.35	%		2.38	%		2.18	%
Net investment income (loss), to average net assets(e)		0.64	%(d)		0.43	%		(0.07	)%		(0.05	)%		0.07	%		(0.72	)%
Portfolio turnover rate		14	%(c)		28	%		30	%		55	%		79	%		140	%

          The following tables show the financial performance of Class A, Class B, Class C, Class I and Class T of Transamerica Equity for the past five fiscal years and for the six-month period ended April 30, 2009. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Equity (assuming reinvestment of all distributions). This information through the period ended October 31, 2008 has been derived from financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Funds. The Annual and Semi-Annual Reports for Transamerica Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Funds”).

For a share outstanding throughout each period

	Transamerica Equity
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.85		$	12.07		$	9.83		$	8.87		$	7.44		$	6.86
Investment operations
Net investment income (loss)(a)		0.02			(0.01	)		(0.05	)		(0.07	)		(0.02	)		(0.07	)
Net realized and unrealized gain (loss) on investments		(0.33	)		(5.21	)		2.29			1.11			1.58			0.65
Total from investment operations		(0.31	)		(5.22	)		2.24			1.04			1.56			0.58
Distributions
Net realized gains on investments		—			—			—			(0.08	)		(0.13	)		—
Total distributions		—			—			—			(0.08	)		(0.13	)		—
Net asset value
End of period/year	$	6.54		$	6.85		$	12.07		$	9.83		$	8.87		$	7.44
Total return(b)		(4.53	)%(c)		(43.25	)%		22.79	%		11.71	%		21.16	%		8.45	%
Net assets end of period/year (thousands)	$	270,559		$	300,140		$	532,251		$	500,483		$	301,635		$	176,851
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.52	%(d)		1.39	%		1.40	%		1.51	%		1.36	%		1.50	%
Before reimbursement/fee waiver		1.66	%(d)		1.39	%		1.40	%		1.51	%		1.36	%		1.50	%
Net investment income (loss), to average net assets(e)		0.51	%(d)		(0.07	)%		(0.48	)%		(0.70	)%		(0.27	)%		(0.90	)%
Portfolio turnover rate		23	%(c)		33	%		62	%		19	%		39	%		97	%

150

	Transamerica Equity
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.42		$	11.39		$	9.35		$	8.49		$	7.19		$	6.68
Investment operations
Net investment loss(a)		—	(f)		(0.08	)		(0.12	)		(0.12	)		(0.08	)		(0.11	)
Net realized and unrealized gain (loss) on investments		(0.32	)		(4.89	)		2.16			1.06			1.51			0.62
Total from investment operations		(0.32	)		(4.97	)		2.04			0.94			1.43			0.51
Distributions
Net realized gains on investments		—			—			—			(0.08	)		(0.13	)		—
Total distributions		—			—			—			(0.08	)		(0.13	)		—
Net asset value
End of period/year	$	6.10		$	6.42		$	11.39		$	9.35		$	8.49		$	7.19
Total return(b)		(4.98	)%(c)		(43.63	)%		21.82	%		11.06	%		20.03	%		7.68	%
Net assets end of period/year (thousands)	$	44,507		$	59,479		$	191,007		$	222,144		$	49,865		$	47,928
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.17	%(d)		2.17	%		2.17	%		2.17	%		2.18	%		2.20	%
Before reimbursement/fee waiver		2.64	%(d)		2.21	%		2.21	%		2.34	%		2.61	%		2.72	%
Net investment loss, to average net assets(e)		(0.12	)%(d)		(0.87	)%		(1.25	)%		(1.34	)%		(0.99	)%		(1.62	)%
Portfolio turnover rate		23	%(c)		33	%		62	%		19	%		39	%		97	%

	Transamerica Equity
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.44		$	11.42		$	9.37		$	8.50		$	7.20		$	6.68
Investment operations
Net investment loss(a)		—	(f)		(0.07	)		(0.11	)		(0.12	)		(0.08	)		(0.11	)
Net realized and unrealized gain (loss) on investments		(0.31	)		(4.91	)		2.16			1.07			1.51			0.63
Total from investment operations		(0.31	)		(4.98	)		2.05			0.95			1.43			0.52
Distributions
Net realized gains on investments		—			—			—			(0.08	)		(0.13	)		—
Total distributions		—			—			—			(0.08	)		(0.13	)		—
Net asset value
End of period/year	$	6.13		$	6.44		$	11.42		$	9.37		$	8.50		$	7.20
Total return(b)		(4.81	)%(c)		(43.61	)%		21.88	%		11.16	%		20.05	%		7.78	%
Net assets end of period/year (thousands)	$	37,088		$	46,676		$	101,226		$	97,047		$	23,656		$	21,808
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.17	%(d)		2.04	%		2.07	%		2.10	%		2.18	%		2.20	%
Before reimbursement/fee waiver		2.35	%(d)		2.04	%		2.07	%		2.10	%		2.31	%		2.55	%
Net investment loss, to average net assets(e)		(0.13	)%(d)		(0.72	)%		(1.15	)%		(1.27	)%		(1.00	)%		(1.63	)%
Portfolio turnover rate		23	%(c)		33	%		62	%		19	%		39	%		97	%

151

	Transamerica Equity
	Class I
	April 30, 2009			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006(g)
Net asset value
Beginning of period/year	$	6.99		$	12.23		$	9.90		$	9.17
Investment operations
Net investment income(a)		0.04			0.06			0.01			—	(f)
Net realized and unrealized gain (loss) on investments		(0.34	)		(5.30	)		2.32			0.81
Total from investment operations		(0.30	)		(5.24	)		2.33			0.81
Distributions
Net investment income		(0.04	)		—			—			—
Net realized gains on investments		—			—			—			(0.08	)
Total distributions		(0.04	)		—			—			(0.08	)
Net asset value
End of period/year	$	6.65		$	6.99		$	12.23		$	9.90
Total return(b)		(4.25	)%(c)		(42.85	)%		23.54	%		8.83	%(c)
Net assets end of period/year (thousands)	$	454,741		$	500,722		$	888,019		$	714,803
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.80	%(d)		0.75	%		0.78	%		0.81	%(d)
Before reimbursement/fee waiver		0.80	%(d)		0.75	%		0.78	%		0.81	%(d)
Net investment income, to average net assets(e)		1.23	%(d)		0.55	%		0.13	%		0.02	%(d)
Portfolio turnover rate		23	%(c)		33	%		62	%		19	%(c)

	Transamerica Equity
	Class T
	April 30, 2009			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006(h)
Net asset value
Beginning of period/year	$	19.14		$	33.53		$	27.18		$	27.10
Investment operations
Net investment income(a)		0.08			0.12			—			—	(f)
Net realized and unrealized gain (loss) on investments		(0.92	)		(14.51	)		6.35			0.08
Total from investment operations		(0.84	)		(14.39	)		6.35			0.08
Distributions
Net investment income		—	(f)		—			—			—
Total distributions		—	(f)		—			—			—
Net asset value
End of period/year	$	18.30		$	19.14		$	33.53		$	27.18
Total return(b)		(4.38	)%(c)		(42.92	)%		23.36	%		0.30	%(c)
Net assets end of period/year (thousands)	$	79,859		$	90,881		$	183,495		$	195,420
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.02	%(d)		0.89	%		0.91	%		0.84	%(d)
Before reimbursement/fee waiver		1.02	%(d)		0.89	%		0.91	%		0.84	%(d)
Net investment income (loss), to average net assets(e)		1.01	%(d)		0.42	%		0.01	%		(0.21	)%(d)
Portfolio turnover rate		23	%(c)		33	%		62	%		19	%(c)

          The following tables show the financial performance of Class A, Class B, and Class C of Transamerica Legg Mason Partners All Cap for the past five fiscal years and for the six-month period ended April 30, 2009. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Legg Mason Partners All Cap (assuming reinvestment of all distributions).

152

This information through the period ended October 31, 2008 has been derived from financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Funds. The Annual and Semi-Annual Reports for Transamerica Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Funds”).

For a share outstanding throughout each period

	Transamerica Legg Mason Partners All Cap
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value (thousands)
Beginning of period/year	$	9.98		$	17.08		$	18.18		$	16.10		$	14.80		$	13.95
Investment operations
Net investment income (loss)(a)		0.05			0.12			0.07			0.09			0.06			(0.03	)
Net realized and unrealized gain (loss) on investments		(0.80	)		(5.73	)		1.49			2.55			1.24			0.88
Total from investment operations		(0.75	)		(5.61	)		1.56			2.64			1.30			0.85
Distributions
Net investment income		(0.15	)		—			(0.06	)		(0.01	)		—	(f)		—
Net realized gains on investments		—			(1.49	)		(2.60	)		(0.55	)		—			—
Total distributions		(0.15	)		(1.49	)		(2.66	)		(0.56	)		—	(f)		—
Net asset value
End of period/year	$	9.08		$	9.98		$	17.08		$	18.18		$	16.10		$	14.80
Total return(b)		(7.58	)%(c)		(35.81	)%		9.27	%		16.74	%		8.79	%		6.09	%
Net assets end of period/year (thousands)	$	26,920		$	28,237		$	49,938		$	55,622		$	173,929		$	438,047
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.55	%(d)		1.55	%		1.55	%		1.55	%		1.32	%		1.33	%
Before reimbursement/fee waiver		1.91	%(d)		1.59	%		1.56	%		1.57	%		1.32	%		1.33	%
Net investment income (loss), to average net assets(e)		1.15	%(d)		0.85	%		0.42	%		0.52	%		0.36	%		(0.17	)%
Portfolio turnover rate		15	%(c)		27	%		17	%		25	%		27	%		25	%

	Transamerica Legg Mason Partners All Cap
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	9.24		$	16.01		$	17.24		$	15.39		$	14.27		$	13.53
Investment operations
Net investment income (loss)(a)		0.02			0.02			(0.03	)		(0.03	)		(0.09	)		(0.11	)
Net realized and unrealized gain (loss) on investments		(0.75	)		(5.30	)		1.40			2.43			1.21			0.85
Total from investment operations		(0.73	)		(5.28	)		1.37			2.40			1.12			0.74
Distributions
Net investment income		(0.03	)		—			—			—	(f)		—			—
Net realized gains on investments		—			(1.49	)		(2.60	)		(0.55	)		—			—
Total distributions		(0.03	)		(1.49	)		(2.60	)		(0.55	)		—			—
Net asset value
End of period/year	$	8.48		$	9.24		$	16.01		$	17.24		$	15.39		$	14.27
Total return(b)		(7.93	)%(c)		(36.18	)%		8.57	%		15.97	%		7.84	%		5.48	%
Net assets end of period/year (thousands)	$	23,175		$	33,670		$	88,268		$	109,567		$	123,494		$	150,829

153

	Transamerica Legg Mason Partners All Cap
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.20	%		2.19	%		2.20	%		2.19	%		1.97	%
Before reimbursement/fee waiver		2.66	%(d)		2.24	%		2.19	%		2.21	%		2.19	%		1.97	%
Net investment income (loss), to average net assets(e)		0.57	%(d)		0.20	%		(0.22	)%		(0.17	)%		(0.58	)%		(0.80	)%
Portfolio turnover rate		15	%(c)		27	%		17	%		25	%		27	%		25	%

	Transamerica Legg Mason Partners All Cap
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	9.26		$	16.04		$	17.25		$	15.39		$	14.26		$	13.53
Investment operations
Net investment income (loss)(a)		0.02			0.03			(0.02	)		(0.02	)		(0.08	)		(0.12	)
Net realized and unrealized gain (loss) on investments		(0.76	)		(5.32	)		1.41			2.43			1.21			0.85
Total from investment operations		(0.74	)		(5.29	)		1.39			2.41			1.13			0.73
Distributions
Net investment income		(0.05	)		—			—			—	(f)		—			—
Net realized gains on investments		—			(1.49	)		(2.60	)		(0.55	)		—			—
Total distributions		(0.05	)		(1.49	)		(2.60	)		(0.55	)		—			—
Net asset value
End of period/year	$	8.47		$	9.26		$	16.04		$	17.25		$	15.39		$	14.26
Total return(b)		(7.97	)%(c)		(36.17	)%		8.70	%		16.04	%		7.89	%		5.43	%
Net assets end of period/year (thousands)	$	12,396		$	15,316		$	35,568		$	41,340		$	49,909		$	65,391
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.15	%		2.13	%		2.15	%		2.15	%		1.99	%
Before reimbursement/fee waiver		2.44	%(d)		2.15	%		2.13	%		2.15	%		2.15	%		1.99	%
Net investment income (loss), to average net assets(e)		0.54	%(d)		0.26	%		(0.15	)%		(0.12	)%		(0.53	)%		(0.83	)%
Portfolio turnover rate		15	%(c)		27	%		17	%		25	%		27	%		25	%

          The following tables show the financial performance of Class A, Class B, Class C and Class I of Transamerica Growth Opportunities for the past five fiscal years and for the six-month period ended April 30, 2009. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Growth Opportunities (assuming reinvestment of all distributions). This information through the period ended October 31, 2008 has been derived from financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Funds. The Annual and Semi-Annual Reports for Transamerica Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Funds”).

For a share outstanding throughout each period

	Transamerica Growth Opportunities
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.57		$	11.40		$	8.36		$	7.85		$	6.61		$	5.95
Investment operations
Net investment loss(a)		(0.01	)		(0.06	)		(0.09	)		(0.07	)		(0.02	)		(0.03	)
Net realized and unrealized gain (loss) on investments		0.03			(4.77	)		3.13			0.58			1.26			0.69
Total from investment operations		0.02			(4.83	)		3.04			0.51			1.24			0.66

154

	Transamerica Growth Opportunities
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
End of period/year	$	6.59		$	6.57		$	11.40		$	8.36		$	7.85		$	6.61
Total return(b)		0.30	%(c)		(42.37	)%		36.20	%		6.62	%		18.76	%		11.09	%
Net assets end of period/year (thousands)	$	42,495		$	41,005		$	64,825		$	56,588		$	256,559		$	230,633
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.75	%(d)		1.75	%		1.75	%		1.72	%		1.41	%		1.43	%
Before reimbursement/fee waiver		2.27	%(d)		1.81	%		1.77	%		1.72	%		1.41	%		1.43	%
Net investment loss, to average net assets (e)		(0.23	)%(d)		(0.69	)%		(1.00	)%		(0.89	)%		(0.30	)%		(0.47	)%
Portfolio turnover rate		34	%(c)		45	%		85	%		59	%		34	%		43	%

	Transamerica Growth Opportunities
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.13		$	10.72		$	7.92		$	7.48		$	6.37		$	5.79
Investment operations
Net investment loss(a)		(0.02	)		(0.12	)		(0.14	)		(0.13	)		(0.09	)		(0.09	)
Net realized and unrealized gain (loss) on investments		0.02			(4.47	)		2.94			0.57			1.20			0.67
Total from investment operations		—			(4.59	)		2.80			0.44			1.11			0.58
Net asset value
End of period/year	$	6.13		$	6.13		$	10.72		$	7.92		$	7.48		$	6.37
Total return(b)		—	%(c)		(42.82	)%		35.35	%		5.88	%		17.43	%		10.02	%
Net assets end of period/year (thousands)	$	16,006		$	20,823		$	65,123		$	66,098		$	74,589		$	77,869
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.40	%(d)		2.40	%		2.40	%		2.40	%		2.40	%		2.40	%
Before reimbursement/fee waiver		2.99	%(d)		2.46	%		2.45	%		2.46	%		2.61	%		2.64	%
Net investment loss, to average net assets (e)		(0.83	)%(d)		(1.39	)%		(1.66	)%		(1.57	)%		(1.29	)%		(1.44	)%
Portfolio turnover rate		34	%(c)		45	%		85	%		59	%		34	%		43	%

	Transamerica Growth Opportunities
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.16		$	10.74		$	7.94		$	7.49		$	6.38		$	5.79
Investment operations
Net investment loss(a)		(0.02	)		(0.11	)		(0.14	)		(0.12	)		(0.09	)		(0.10	)
Net realized and unrealized gain (loss) on investments		0.02			(4.47	)		2.94			0.57			1.20			0.69
Total from investment operations		—			(4.58	)		2.80			0.45			1.11			0.59
Net asset value
End of period/year	$	6.16		$	6.16		$	10.74		$	7.94		$	7.49		$	6.38
Total return(b)		—	%(c),(j)		(42.64	)%		35.26	%		6.01	%		17.40	%		10.19	%
Net assets end of period/year (thousands)	$	9,820		$	10,619		$	22,656		$	21,688		$	25,432		$	28,103

155

	Transamerica Growth Opportunities
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.40	%(d)		2.34	%		2.36	%		2.38	%		2.40	%		2.40	%
Before reimbursement/fee waiver		2.72	%(d)		2.34	%		2.36	%		2.38	%		2.54	%		2.65	%
Net investment loss, to average net assets (e)		(0.86	)%(d)		(1.29	)%		(1.61	)%		(1.54	)%		(1.29	)%		(1.58	)%
Portfolio turnover rate		34	%(c)		45	%		85	%		59	%		34	%		43	%

	Transamerica Growth Opportunities
	Class I
	April 30, 2009			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006(g)
Net asset value
Beginning of period/year	$	6.74		$	11.59		$	8.43		$	7.99
Investment operations
Net investment income (loss)(a)		0.02			0.01			(0.01	)		—	(f)
Net realized and unrealized gain (loss) on investments		0.02			(4.86	)		3.17			0.44
Total from investment operations		0.04			(4.85	)		3.16			0.44
Net asset value
End of period/year	$	6.78		$	6.74		$	11.59		$	8.43
Total return(b)		0.59	%(c)		(41.85	)%		37.49	%		5.51	%(c)
Net assets end of period/year (thousands)	$	89,788		$	86,425		$	206,863		$	214,775
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.91	%(d)		0.86	%		0.88	%		0.88	%(d)
Before reimbursement/fee waiver		0.91	%(d)		0.86	%		0.88	%		0.88	%(d)
Net investment income (loss), to average net assets(e)		0.61	%(d)		0.15	%		(0.15	)%		(0.06	)%(d)
Portfolio turnover rate		34	%(c)		45	%		85	%		59	%(c)

          The following tables show the financial performance of Class A, Class B, Class C and Class I of Transamerica Flexible Income for the past five fiscal years and for the six-month period ended April 30, 2009. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Flexible Income (assuming reinvestment of all distributions). This information through the period ended October 31, 2008 has been derived from financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Funds. The Annual and Semi-Annual Reports for Transamerica Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Funds”).

For a share outstanding throughout each period

	Transamerica Flexible Income
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.22		$	9.14		$	9.38		$	9.31		$	9.68		$	10.21
Investment operations
Net investment income(a)		0.22			0.44			0.48			0.43			0.37			0.38
Net realized and unrealized gain (loss) on investments		0.02			(1.89	)		(0.25	)		0.05			(0.32	)		0.14
Total from investment operations		0.24			(1.45	)		0.23			0.48			0.05			0.52
Distributions
Net investment income		(0.22	)		(0.47	)		(0.47	)		(0.41	)		(0.38	)		(0.38	)
Net realized gains on investments		—			—			—			—			—			(0.63	)
Return of capital		—			—			—			—			(0.04	)		(0.04	)
Total distributions		(0.22	)		(0.47	)		(0.47	)		(0.41	)		(0.42	)		(1.05	)

156

	Transamerica Flexible Income
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
End of period/year	$	7.24		$	7.22		$	9.14		$	9.38		$	9.31		$	9.68
Total return(b)		3.52	%(c)		(16.57	)%		2.42	%		5.34	%		0.47	%		5.72	%
Net assets end of period/year (thousands)	$	15,386		$	13,360		$	15,409		$	17,005		$	140,203		$	80,201
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.49	%(d)		1.39	%		1.40	%		1.47	%		1.25	%		1.43	%
Before reimbursement/fee waiver		1.49	%(d)		1.39	%		1.40	%		1.47	%		1.25	%		1.43	%
Net investment income, to average net assets (e)		6.13	%(d)		5.12	%		5.12	%		4.64	%		3.85	%		3.89	%
Portfolio turnover rate		90	%(c)		98	%		108	%		110	%		58	%		169	%

	Transamerica Flexible Income
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.23		$	9.14		$	9.39		$	9.32		$	9.68		$	10.20
Investment operations
Net investment income(a)		0.19			0.38			0.42			0.38			0.29			0.32
Net realized and unrealized gain (loss) on investments		0.03			(1.88	)		(0.26	)		0.06			(0.32	)		0.15
Total from investment operations		0.22			(1.50	)		0.16			0.44			(0.03	)		0.47
Distributions
Net investment income		(0.20	)		(0.41	)		(0.41	)		(0.37	)		(0.29	)		(0.32	)
Net realized gains on investments		—			—			—			—			—			(0.63	)
Return of capital		—			—			—			—			(0.04	)		(0.04	)
Total distributions		(0.20	)		(0.41	)		(0.41	)		(0.37	)		(0.33	)		(0.99	)
Net asset value
End of period/year	$	7.25		$	7.23		$	9.14		$	9.39		$	9.32		$	9.68
Total return(b)		3.15	%(c)		(17.03	)%		1.66	%		4.81	%		(0.36	)%		5.13	%
Net assets end of period/year (thousands)	$	8,431		$	8,628		$	17,007		$	23,501		$	32,560		$	45,338
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.21	%(d)		2.05	%		2.04	%		2.08	%		2.08	%		2.03	%
Before reimbursement/fee waiver		2.21	%(d)		2.05	%		2.04	%		2.08	%		2.08	%		2.03	%
Net investment income, to average net assets (e)		5.39	%(d)		4.42	%		4.48	%		4.08	%		3.02	%		3.25	%
Portfolio turnover rate		90	%(c)		98	%		108	%		110	%		58	%		169	%

	Transamerica Flexible Income
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.21		$	9.12		$	9.36		$	9.30		$	9.67		$	10.20
Investment operations
Net investment income(a)		0.19			0.39			0.42			0.39			0.29			0.33
Net realized and unrealized gain (loss) on investments		0.02			(1.88	)		(0.25	)		0.04			(0.33	)		0.13
Total from investment operations		0.21			(1.49	)		0.17			0.43			(0.04	)		0.46
Distributions
Net investment income		(0.20	)		(0.42	)		(0.41	)		(0.37	)		(0.29	)		(0.32	)

157

	Transamerica Flexible Income
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net realized gains on investments		—			—			—			—			—			(0.63	)
Return of capital		—			—			—			—			(0.04	)		(0.04	)
Total distributions		(0.20	)		(0.42	)		(0.41	)		(0.37	)		(0.33	)		(0.99	)
Net asset value
End of period/year	$	7.22		$	7.21		$	9.12		$	9.36		$	9.30		$	9.67
Total return(b)		3.10	%(c)		(16.98	)%		1.81	%		4.74	%		(0.40	)%		5.02	%
Net assets end of period/year (thousands)	$	6,752		$	5,981		$	8,982		$	12,519		$	13,439		$	19,675
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.10	%(d)		1.97	%		2.00	%		2.07	%		2.11	%		2.10	%
Before reimbursement/fee waiver		2.10	%(d)		1.97	%		2.00	%		2.07	%		2.11	%		2.10	%
Net investment income, to average net assets (e)		5.52	%(d)		4.52	%		4.51	%		4.15	%		2.99	%		3.37	%
Portfolio turnover rate		90	%(c)		98	%		108	%		110	%		58	%		169	%

	Transamerica Flexible Income
	Class I
	April 30, 2009			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005(i)
Net asset value
Beginning of period/year	$	7.25		$	9.17		$	9.42		$	9.35		$	9.68
Investment operations
Net investment income(a)		0.23			0.50			0.53			0.50			0.40
Net realized and unrealized gain (loss) on investments		0.04			(1.90	)		(0.26	)		0.05			(0.32	)
Total from investment operations		0.27			(1.40	)		0.27			0.55			0.08
Distributions
Net investment income		(0.25	)		(0.52	)		(0.52	)		(0.48	)		(0.37	)
Net realized gains on investments		—			—			—			—			(0.04	)
Total distributions		(0.25	)		(0.52	)		(0.52	)		(0.48	)		(0.41	)
Net asset value
End of period/year	$	7.27		$	7.25		$	9.17		$	9.42		$	9.35
Total return(b)		3.89	%(c)		(16.02	)%		2.93	%		6.04	%		0.85	%(c)
Net assets end of period/year (thousands)	$	95,851		$	128,108		$	370,611		$	221,116		$	110,709
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.85	%(d)		0.77	%		0.80	%		0.86	%		0.85	%(d)
Before reimbursement/fee waiver		0.85	%(d)		0.77	%		0.80	%		0.86	%		0.85	%(d)
Net investment income, to average net assets (e)		6.73	%(d)		5.67	%		5.71	%		5.35	%		4.25	%(d)
Portfolio turnover rate		90	%(c)		98	%		108	%		110	%		58	%(c)

          The following tables show the financial performance of Class A, Class B, Class C and Class I of Transamerica Convertible Securities for the past five fiscal years and for the six-month period ended April 30, 2009. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Convertible Securities (assuming reinvestment of all distributions). This information through the period ended October 31, 2008 has been derived from financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Funds. The Annual and Semi-Annual Reports for Transamerica Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Funds”).

158

For a share outstanding throughout each period

	Transamerica Convertible Securities
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.18		$	15.30		$	12.76		$	11.56		$	11.00		$	11.32
Investment operations
Net investment income(a)		0.11			0.13			0.10			0.07			0.20			0.21
Net realized and unrealized gain (loss) on investments		0.03			(4.92	)		3.22			1.33			0.81			0.56
Total from investment operations		0.14			(4.79	)		3.32			1.40			1.01			0.77
Distributions
Net investment income		(0.12	)		(0.10	)		(0.11	)		(0.07	)		(0.20	)		(0.22	)
Net realized gains on investments		—			(3.23	)		(0.67	)		(0.13	)		(0.25	)		(0.87	)
Total distributions		(0.12	)		(3.33	)		(0.78	)		(0.20	)		(0.45	)		(1.09	)
Net asset value
End of period/year	$	7.20		$	7.18		$	15.30		$	12.76		$	11.56		$	11.00
Total return(b)		2.05	%(c)		(38.92	)%		27.41	%		12.15	%		9.24	%		7.06	%
Net assets end of period/year (thousands)	$	10,890		$	10,748		$	11,276		$	6,350		$	209,374		$	188,049
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.48	%(d)		1.33	%		1.33	%		1.25	%		1.17	%		1.20	%
Before reimbursement/fee waiver		1.48	%(d)		1.33	%		1.33	%		1.25	%		1.17	%		1.20	%
Net investment income, to average net assets (e)		3.13	%(d)		1.23	%		0.75	%		0.59	%		1.74	%		1.83	%
Portfolio turnover rate		87	%(c)		91	%		92	%		69	%		87	%		157	%

	Transamerica Convertible Securities
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.13		$	15.22		$	12.71		$	11.54		$	11.00		$	11.31
Investment operations
Net investment income(a)		0.08			0.04			0.01			—	(f)		0.09			0.14
Net realized and unrealized gain (loss) on investments		0.03			(4.87	)		3.21			1.32			0.80			0.57
Total from investment operations		0.11			(4.83	)		3.22			1.32			0.89			0.71
Distributions
Net investment income		(0.10	)		(0.03	)		(0.04	)		(0.02	)		(0.10	)		(0.15	)
Net realized gains on investments		—			(3.23	)		(0.67	)		(0.13	)		(0.25	)		(0.87	)
Total distributions		(0.10	)		(3.26	)		(0.71	)		(0.15	)		(0.35	)		(1.02	)
Net asset value
End of period/year	$	7.14		$	7.13		$	15.22		$	12.71		$	11.54		$	11.00
Total return(b)		1.57	%(c)		(39.32	)%		26.54	%		11.47	%		8.09	%		6.52	%
Net assets end of period/year (thousands)	$	2,297		$	2,920		$	6,533		$	6,651		$	6,656		$	6,379
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.23	%(d)		2.02	%		1.99	%		1.99	%		2.15	%		1.79	%
Before reimbursement/fee waiver		2.23	%(d)		2.02	%		1.99	%		1.99	%		2.15	%		1.79	%
Net investment income, to average net assets(e)		2.25	%(d)		0.40	%		0.10	%		—	%(j)		0.76	%		1.24	%
Portfolio turnover rate		87	%(c)		91	%		92	%		69	%		87	%		157	%

159

	Transamerica Convertible Securities
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.10		$	15.17		$	12.66		$	11.50		$	10.97		$	11.31
Investment operations
Net investment income(a)		0.08			0.07			0.02			—	(f)		0.08			0.11
Net realized and unrealized gain (loss) on investments		0.03			(4.87	)		3.20			1.31			0.82			0.57
Total from investment operations		0.11			(4.80	)		3.22			1.31			0.90			0.68
Distributions
Net investment income		(0.10	)		(0.04	)		(0.04	)		(0.02	)		(0.12	)		(0.15	)
Net realized gains on investments		—			(3.23	)		(0.67	)		(0.13	)		(0.25	)		(0.87	)
Total distributions		(0.10	)		(3.27	)		(0.71	)		(0.15	)		(0.37	)		(1.02	)
Net asset value
End of period/year	$	7.11		$	7.10		$	15.17		$	12.66		$	11.50		$	10.97
Total return(b)		1.66	%(c)		(39.24	)%		26.69	%		11.44	%		8.17	%		6.33	%
Net assets end of period/year (thousands)	$	6,255		$	7,070		$	3,598		$	3,551		$	4,465		$	5,204
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.04	%(d)		1.94	%		1.94	%		1.94	%		2.16	%		2.05	%
Before reimbursement/fee waiver		2.04	%(d)		1.94	%		1.94	%		1.94	%		2.16	%		2.05	%
Net investment income, to average net assets(e)		2.52	%(d)		0.72	%		0.15	%		0.02	%		0.73	%		0.98	%
Portfolio turnover rate		87	%(c)		91	%		92	%		69	%		87	%		157	%

	Transamerica Convertible Securities
	Class I
	April 30, 2009			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006(g)
Net asset value
Beginning of period/year	$	7.19		$	15.31		$	12.76		$	11.71
Investment operations
Net investment income(a)		0.12			0.18			0.16			0.14
Net realized and unrealized gain (loss) on investments		0.03			(4.92	)		3.23			1.17
Total from investment operations		0.15			(4.74	)		3.39			1.31
Distributions
Net investment income		(0.14	)		(0.15	)		(0.17	)		(0.13	)
Net realized gains on investments		—			(3.23	)		(0.67	)		(0.13	)
Total distributions		(0.14	)		(3.38	)		(0.84	)		(0.26	)
Net asset value
End of period/year	$	7.20		$	7.19		$	15.31			11.26	%(c)
Total return(b)		2.22	%(c)		(38.58	)%		28.10	%	$	12.76
Net assets end of period/year (thousands)	$	43,958		$	91,679		$	148,562		$	256,474
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.87	%(d)		0.84	%		0.82	%		0.82	%(d)
Before reimbursement/fee waiver		0.87	%(d)		0.84	%		0.82	%		0.82	%(d)
Net investment income, to average net assets(e)		3.44	%(d)		1.65	%		1.24	%		1.20	%(d)
Portfolio turnover rate		87	%(c)		91	%		92	%		69	%(c)

160

          Because Transamerica Diversified Equity is a newly-organized fund, it has no prior financial performance for its share classes.

(a)	Calculated based on average number of shares outstanding.
(b)	Total return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase.
(c)	Not annualized.
(d)	Annualized.
(e)	Includes Redemption Fees, if any. The impact of Redemption Fees is less than 0.01%.
(f)	Rounds to less than $(0.01) or $0.01.
(g)	Commenced operations on November 15, 2006.
(h)	Commenced operations on October 27, 2006.
(i)	Commenced operations on November 8, 2004.
(j)	Rounds to less than (0.01)% or 0.01%.

Transamerica Premier Funds

          The following tables show the financial performance of the Investor Class of Transamerica Premier Balanced Fund for the past five fiscal years. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Premier Balanced Fund (assuming reinvestment of all distributions). This information through the period ended December 31, 2008 has been derived from financial statements audited by Ernst & Young LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Premier Funds. The Annual and Semi-Annual Reports for Transamerica Premier Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Premier Funds”).

For a share outstanding throughout each period

	Transamerica Premier Balanced Fund
	Investor Class
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2008			2007			2006			2005			2004
Net Asset Value
Beginning of period/year	$	17.01		$	27.14		$	25.24		$	23.63		$	22.60		$	20.22
Investment Operations
Net investment income (loss)(a)		0.20			0.39			0.33			0.25			0.26			(0.22	)
Net realized and unrealized gain (loss) on investments		1.21			(9.43	)		2.97			1.69			1.04			2.83
Total from investment operations		1.41			(9.04	)		3.30			1.94			1.30			2.61
Distributions
Net investment income		—			(0.39	)		(0.38	)		(0.19	)		(0.27	)		(0.23	)
Net realized gains on investments		—			(0.03	)		—			—			—			—
Return of capital		—			(0.67	)		(1.02	)		(0.14	)		—			—
Total distributions		—			(1.09	)		(1.40	)		(0.33	)		(0.27	)		(0.23	)
Net Asset Value
End of period/year	$	18.42		$	17.01		$	27.14		$	25.24		$	23.63		$	22.60
Total Return(b)		8.29	%(c)		(33.27	)%		13.04	%		8.20	%		5.81	%		12.92	%

161

	Transamerica Premier Balanced Fund
	Investor Class
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2008			2007			2006			2005			2004
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.10	%(d)		1.10	%		1.10	%		1.10	%		1.08	%		1.29	%
Before reimbursement/fee waiver		1.40	%(d)		1.24	%		1.10	%		1.10	%		1.14	%		1.29	%
Net investment income (loss), to average net assets		2.42	%(d)		1.68	%		1.21	%		1.02	%		1.14	%		(1.04	)%
Portfolio turnover rate		69	%(c)		69	%		58	%		45	%		53	%		47	%
Net assets End of Period/Year (in thousands)	$	283,228		$	279,515		$	475,238		$	376,686		$	305,892		$	245,138

          The following tables show the financial performance of the Investor Class of Transamerica Premier Diversified Equity Fund for the past five fiscal years. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Premier Diversified Equity Fund (assuming reinvestment of all distributions). This information through the period ended December 31, 2008 has been derived from financial statements audited by Ernst & Young LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Premier Funds. The Annual and Semi-Annual Reports for Transamerica Premier Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Premier Funds”).

For a share outstanding throughout each period

	Transamerica Premier Diversified Equity Fund
	Investor Class
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2008			2007			2006			2005			2004
Net Asset Value
Beginning of period/year	$	9.82		$	17.15		$	14.84		$	13.69		$	12.70		$	11.17
Investment Operations
Net investment income(a)		0.03			0.05			0.01			0.01			0.02			0.03
Net realized and unrealized gain (loss) on investments		1.00			(7.08	)		2.77			1.28			0.99			1.51
Total from investment operations		1.03			(7.03	)		2.78			1.29			1.01			1.54
Distributions
Net investment income		—			(0.02	)		—	(e)		—			(0.02	)		(0.01	)
Net realized gains on investments		—			(0.28	)		(0.47	)		(0.14	)		—			—
Total distributions		—			(0.30	)		(0.47	)		(0.14	)		(0.02	)		(0.01	)
Net Asset Value
End of period/year	$	10.85		$	9.82		$	17.15		$	14.84		$	13.69		$	12.70
Total Return(b)		10.49	%(c)		(40.93	)%		18.68	%		9.42	%		7.93	%		13.81	%
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.15	%(d)		1.15	%		1.15	%		1.15	%		1.10	%		1.20	%
Before reimbursement/fee waiver		1.40	%(d)		1.29	%		1.15	%		1.15	%		1.31	%		1.47	%
Net investment income, to average net assets		0.63	%(d)		0.35	%		0.08	%		0.04	%		0.13	%		0.28	%
Portfolio turnover rate		13	%(c)		44	%		29	%		36	%		35	%		30	%
Net assets End of Period/Year (in thousands)	$	225,929		$	194,445		$	305,343		$	207,607		$	148,927		$	71,487

162

          The following tables show the financial performance of the Institutional Class of Transamerica Premier Institutional Diversified Equity Fund for the past five fiscal years. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Premier Institutional Diversified Equity Fund (assuming reinvestment of all distributions). This information through the period ended December 31, 2008 has been derived from financial statements audited by Ernst & Young LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Premier Funds. The Annual and Semi-Annual Reports for Transamerica Premier Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Premier Funds”).

For a share outstanding throughout each period

	Transamerica Premier Institutional Diversified Equity Fund
	Institutional Class
	Period Ended			Year Ended			Year Ended			Year Ended			Period Ended
	June 30, 2009			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2008			2007			2006			2005(e)
Net Asset Value
Beginning of period/year	$	7.79		$	14.06		$	12.21		$	11.14		$	10.00
Investment Operations
Net investment income(a)		0.06			0.09			0.06			0.05			0.05
Net realized and unrealized gain (loss) on investments		0.41			(5.87	)		2.43			1.02			1.14
Total from investment operations		0.47			(5.78	)		2.49			1.07			1.19
Distributions
Net investment income		—			(0.09	)		(0.06	)		—			(0.05	)
Net realized gains on investments		—			(0.40	)		(0.58	)		—			—
Total distributions		—			(0.49	)		(0.64	)		—			(0.05	)
Net Asset Value
End of period/year	$	8.26		$	7.79		$	14.06		$	12.21		$	11.14
Total Return(b)		6.03	%(c)		(41.06	)%		20.34	%		9.61	%		11.88	%(c)
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.75	%(d)		0.75	%		0.75	%		0.75	%		0.75	%(d)
Before reimbursement/fee waiver		7.51	%(d)		8.87	%		9.02	%		8.90	%		9.27	%(d)
Net investment income, to average net assets		1.52	%(d)		0.74	%		0.44	%		0.40	%		0.52	%(d)
Portfolio turnover rate		13	%(c)		46	%		31	%		40	%		38	%(c)
Net assets End of Period/Year (in thousands)	$	1,786		$	436		$	738		$	613		$	559

          The following tables show the financial performance of the Investor Class of Transamerica Premier Equity Fund for the past five fiscal years. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Premier Equity Fund (assuming reinvestment of all distributions). This information through the period ended December 31, 2008 has been derived from financial statements audited by Ernst & Young LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Premier Funds. The Annual and Semi-

163

Annual Reports for Transamerica Premier Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Premier Funds”).

For a share outstanding throughout each period

	Transamerica Premier Equity Fund
	Investor Class
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2008			2007			2006			2005			2004
Net Asset Value
Beginning of period/year	$	13.90		$	25.60		$	22.52		$	22.05		$	19.46		$	16.90
Investment Operations
Net investment income (loss)(a)		0.04			0.06			(0.03	)		(0.07	)		(0.08	)		(0.02	)
Net realized and unrealized gain (loss) on investments		1.04			(11.52	)		3.45			1.74			3.19			2.58
Total from investment operations		1.08			(11.46	)		3.42			1.67			3.11			2.56
Distributions
Net investment income		—			(0.05	)		—			—			—			—
Net realized gains on investments		—			(0.19	)		(0.34	)		(1.20	)		(0.52	)		—
Total distributions		—			(0.24	)		(0.34	)		(1.20	)		(0.52	)		—
Net Asset Value
End of period/year	$	14.98		$	13.90		$	25.60		$	22.52		$	22.05		$	19.46
Total Return(b)		7.77	%(c)		(44.74	)%		15.19	%		7.54	%		15.96	%		15.15	%
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.15	%(d)		1.15	%		1.15	%		1.15	%		1.09	%		1.29	%
Before reimbursement/fee waiver		1.42	%(d)		1.30	%		1.15	%		1.15	%		1.09	%		1.29	%
Net investment income (loss), to average net assets		0.63	%(d)		0.29	%		(0.14	)%		(0.28	)%		(0.38	)%		(0.13	)%
Portfolio turnover rate		18	%(c)		47	%		40	%		37	%		32	%		34	%
Net assets End of Period/Year (in thousands)	$	443,533		$	507,636		$	1,046,412		$	570,680		$	423,181		$	179,454

          The following tables show the financial performance of the Institutional Class of Transamerica Premier Institutional Equity Fund for the past five fiscal years. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Premier Institutional Equity Fund (assuming reinvestment of all distributions). This information through the period ended December 31, 2008 has been derived from financial statements audited by Ernst & Young LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Premier Funds. The Annual and Semi-Annual Reports for Transamerica Premier Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Premier Funds”).

164

For a share outstanding throughout each period

	Transamerica Premier Institutional Equity Fund
	Institutional Class
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2008			2007			2006			2005			2004(d)
Net Asset Value
Beginning of period/year	$	7.45		$	13.45		$	12.21		$	11.41		$	11.11		$	10.00
Investment Operations
Net investment income (loss)(a)		0.04			0.08			0.04			0.01			(0.01	)		0.08
Net realized and unrealized gain (loss) on investments		0.58			(5.99	)		1.79			0.93			1.91			1.40
Total from investment operations		0.62			(5.91	)		1.83			0.94			1.90			1.48
Distributions
Net investment income		—			(0.07	)		(0.01	)		(0.01	)		—			(0.36	)
Net realized gains on investments		—			(0.02	)		(0.58	)		(0.13	)		(1.60	)		(0.01	)
Total distributions		—			(0.09	)		(0.59	)		(0.14	)		(1.60	)		(0.37	)
Net Asset Value
End of period/year	$	8.07		$	7.45		$	13.45		$	12.21		$	11.41		$	11.11
Total Return(b)		8.32	%(c)		(43.92	)%		14.96	%		8.22	%		17.03	%		11.51	%(c)
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.75	%(d)		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%(d)
Before reimbursement/fee waiver		0.91	%(d)		0.85	%		0.90	%		0.93	%		1.05	%		0.90	%(d)
Net investment income (loss), to average net assets		1.05	%(d)		0.74	%		0.28	%		0.09	%		(0.06	)%		1.31	%(d)
Portfolio turnover rate		18	%(c)		35	%		47	%		31	%		122	%		18	%(c)
Net assets End of Period/Year (in thousands)	$	75,225		$	72,739		$	98,169		$	58,448		$	44,106		$	62,110

          The following tables show the financial performance of the Investor Class of Transamerica Premier Focus Fund for the past five fiscal years. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Premier Focus Fund (assuming reinvestment of all distributions). This information through the period ended December 31, 2008 has been derived from financial statements audited by Ernst & Young LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Premier Funds. The Annual and Semi-Annual Reports for Transamerica Premier Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Premier Funds”).

For a share outstanding throughout each period

	Transamerica Premier Focus Fund
	Investor Class
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2008			2007			2006			2005			2004
Net Asset Value
Beginning of period/year	$	13.28		$	23.64		$	19.65		$	18.59		$	16.01		$	13.87
Investment Operations
Net investment loss(a)		(0.05	)		(0.10	)		(0.11	)		(0.11	)		(0.06	)		(0.07	)
Net realized and unrealized gain (loss) on investments		2.32			(9.65	)		4.11			1.17			2.64			2.21
Total from investment operations		2.27			(9.75	)		4.00			1.06			2.58			2.14
Distributions
Net realized gains on investments		—			(0.61	)		(0.01	)		—			—			—
Total distributions		—			(0.61	)		(0.01	)		—			—			—

165

	Transamerica Premier Focus Fund
	Investor Class
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2008			2007			2006			2005			2004
Net Asset Value
End of period/year	$	15.55		$	13.28		$	23.64		$	19.65		$	18.59		$	16.01
Total Return(b)		17.09	%(c)		(41.19	)%		20.35	%		5.70	%		16.12	%		15.43	%
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.40	%(d)		1.37	%		1.18	%		1.20	%		1.32	%		1.36	%
Before reimbursement/fee waiver		1.57	%(d)		1.37	%		1.18	%		1.20	%		1.32	%		1.36	%
Net investment loss, to average net assets		(0.74	)%(d)		(0.52	)%		(0.50	)%		(0.61	)%		(0.38	)%		(0.48	)%
Portfolio turnover rate		32	%(c)		66	%		51	%		46	%		67	%		64	%
Net assets End of Period/Year (in thousands)		$58,920			$50,834			$95,372			$87,200			$111,705			$92,565

          The following tables show the financial performance of the Investor Class of Transamerica Premier Growth Opportunities Fund for the past five fiscal years. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in Transamerica Premier Growth Opportunities Fund (assuming reinvestment of all distributions). This information through the period ended December 31, 2008 has been derived from financial statements audited by Ernst & Young LLP, independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the 2008 Annual Report for Transamerica Premier Funds. The Annual and Semi-Annual Reports for Transamerica Premier Funds are available upon request by calling [1-888-233-4339] or by visiting the website at www.transamericafunds.com (select “Transamerica Premier Funds”).

For a share outstanding throughout each period

	Transamerica Premier Growth Opportunities Fund
	Investor Class
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2008			2007			2006			2005			2004
Net Asset Value
Beginning of period/year	$	16.33		$	27.61		$	23.50		$	22.56		$	19.73		$	16.99
Investment Operations
Net investment loss(a)		(0.01	)		(0.11	)		(0.14	)		(0.10	)		(0.05	)		(0.08	)
Net realized and unrealized gain (loss) on investments		2.18			(11.17	)		5.56			1.04			2.88			2.82
Total from investment operations		2.17			(11.28	)		5.42			0.94			2.83			2.74
Distributions
Net realized gains on investments		—			—			(1.31	)		—			—			—
Total distributions		—			—			(1.31	)		—			—			—
Net Asset Value
End of period/year	$	18.50		$	16.33		$	27.61		$	23.50		$	22.56		$	19.73
Total Return(b)		13.29	%(c)		(40.85	)%		23.01	%		4.17	%		14.36	%		16.13	%
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.40	%(d)		1.38	%		1.17	%		1.17	%		1.31	%		1.36	%
Before reimbursement/fee waiver		1.60	%(d)		1.38	%		1.17	%		1.17	%		1.31	%		1.36	%
Net investment loss, to average net assets		(0.09	)%(d)		(0.50	)%		(0.52	)%		(0.43	)%		(0.24	)%		(0.44	)%
Portfolio turnover rate		33	%(c)		56	%		77	%		64	%		52	%		37	%
Net assets end of period/year (in thousands)		$83,939			$78,056			$146,851			$131,991			$152,064			$118,442

166

(a)	Calculation based on the average number of shares outstanding during the period.
(b)	Total Return represents aggregate total return for each period.
(c)	Not annualized.
(d)	Annualized.
(e)	Rounds to less than $0.01 or $(0.01) per share.
(f)	Commenced operations on June 1, 2004.
(g)	Commenced operations on February 1, 2005.

OWNERSHIP OF SHARES OF THE FUNDS

          To the knowledge of each Target Fund, as of August 7, 2009, the Directors and officers of the Target Fund owned in the aggregate less than 1% of the outstanding shares of the Target Fund.

          To the knowledge of each Destination Fund, as of August 7, 2009, the Trustees and officers of the Destination Fund owned in the aggregate less than 1% of the outstanding shares of the Destination Fund.

          To the knowledge of each Target Fund, as of August 7, 2009, the following persons owned of record or beneficially 5% or more of the outstanding shares of the indicated classes of the Target Fund.

					Beneficial
Fund	Share Class	Name and Address	Number of Shares		or Record	Pct
Transamerica Convertible Securities	I	Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		3,072,644	Beneficial		50.37	%
Transamerica Convertible Securities	I	Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294		2,933,220	Beneficial		48.08	%
Transamerica Convertible Securities	C	Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484		378,277	Beneficial		51.83	%
Transamerica Convertible Securities	A	NFS LLC FEBO State Street Bank Trust Co Ttee Various Retirement Plans 4 Manhattanville Rd Purchase NY 10577-2139		262,280	Beneficial		17.63	%
Transamerica Convertible Securities	A	Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484		221,673	Beneficial		14.90	%
Transamerica Convertible Securities	A	NFS LLC FEBO Transamerica Life Ins Company 1150 S Olive St Ste 2700 Los Angeles CA 90015-2211		85,116	Beneficial		5.72	%
Transamerica Convertible Securities	A	Gary U Rolle Ttee Gary U And Della V Rolle Rev Family Trust Dtd 11/10/87 2727 Mandeville Canyon Rd Los Angeles CA 90049-1005		84,743	Record		5.70	%
Transamerica Convertible Securities	C	Citigroup Global Markets Inc 00109801250 House Account Attn: Peter Booth 333 W 34Th St Fl 7 New York NY 10001-2402		52,728	Beneficial		7.23	%
Transamerica Convertible Securities	C	Transamerica Asset Management Inc Seed Money Account Attn Karen Heburn Mailbin 305E600 570 Carillon Pkwy St Petersburg FL 33716-1294		41,004	Beneficial		5.62	%
Transamerica Convertible Securities	B	Citigroup Global Markets Inc 00109801250 House Account Attn: Peter Booth 333 W 34Th St Fl 7 New York NY 10001-2402		31,364	Beneficial		10.39	%
Transamerica Convertible Securities	B	Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484		26,456	Beneficial		8.76	%
Transamerica Premier Balanced Fund	Investor	National Financial Services 1 World Financial Ctr 200 Liberty St Fl 5 New York NY 10281-5503		8,385,603	Beneficial		54.50	%
Transamerica Premier Balanced Fund	Investor	Prudential Investment Mgmt Svcs For The Benefit Of Mutual Fd Client 100 Mulberry St, 3 Gateway Center Fl 11, Mail Stp NJ 05-11-20 Newark NJ 07102		2,157,711	Beneficial		14.02	%
Transamerica Premier Balanced Fund	Investor	Charles Schwab & Co Inc Mutual Funds Dept 101 Montgomery St San Francisco CA 94104-4151		1,466,637	Beneficial		9.53	%
Transamerica Premier Balanced Fund	Investor	Transamerica Occidental Life Ins Corp Acct 11111 Santa Monica Blvd Ste 800 Attn: Irshana Pichai — Operations Los Angeles CA 90025-3333		775,382	Beneficial		5.04	%

167

					Beneficial
Fund	Share Class	Name and Address	Number of Shares		or Record	Pct
Transamerica Premier Diversified Equity Fund	Investor	National Financial Services 1 World Financial Ctr 200 Liberty St 5th Fl New York NY 10281-5503		10,300,987	Beneficial		49.16	%
Transamerica Premier Diversified Equity Fund	Investor	Kansas Postsecondary Education Savings Plan-695 Moderate Agg PO Box 418210 Kansas City MO 64141-9210		2,995,560	Beneficial		14.30	%
Transamerica Premier Diversified Equity Fund	Investor	Kansas Postsecondary Education Savings Plan-694 Aggressive PO Box 418210 Kansas City MO 64141-9210		2,764,844	Beneficial		13.19	%
Transamerica Premier Diversified Equity Fund	Investor	Kansas Postsecondary Education Savings Plan-696 Moderate PO Box 418210 Kansas City MO 64141-9210		1,255,180	Beneficial		5.99	%
Transamerica Premier Equity Fund	Investor	Charles Schwab & Co Inc Mutual Funds Dept 101 Montgomery St San Francisco CA 94104-4151		14,019,604	Beneficial		50.30	%
Transamerica Premier Equity Fund	Investor	National Financial Services 1 World Financial Ctr 200 Liberty St Fl 5 New York NY 10281-5503		7,476,476	Beneficial		26.83	%
Transamerica Premier Focus Fund	Investor	National Financial Services 1 World Financial Ctr 200 Liberty St Fl 5 New York NY 10281-5503		884,889	Beneficial		23.86	%
Transamerica Premier Focus Fund	Investor	ARC Reinsurance Corporation AEGON Management Attn Eileen Lynch 4333 Edgewood Rd NE Cedar Rapids IA 52499-0001		810,314	Beneficial		21.85	%
Transamerica Premier Focus Fund	Investor	Charles Schwab & Co Inc Mutual Funds Dept 101 Montgomery St San Francisco CA 94104-4151		387,564	Beneficial		10.45	%
Transamerica Premier Growth Opportunities Fund	Investor	National Financial Services 1 World Financial Ctr 200 Liberty St Fl 5 New York NY 10281-5503		2,028,028	Beneficial		44.76	%
Transamerica Premier Growth Opportunities Fund	Investor	ARC Reinsurance Corporation AEGON Management Attn Eileen Lynch 4333 Edgewood Rd NE Cedar Rapids IA 52499-0001		847,119	Beneficial		18.70	%
Transamerica Premier Growth Opportunities Fund	Investor	Charles Schwab & Co Inc Mutual Funds Dept 101 Montgomery St San Francisco CA 94104-4151		358,281	Beneficial		7.91	%
Transamerica Premier Institutional Diversified Equity Fund	Institutional	Tommar LLC C/O Thomas E Larkin Jr 865 S Figueroa St Los Angeles CA 90017-2543		68,478	Record		31.69	%
Transamerica Premier Institutional Diversified Equity Fund	Institutional	Thomas E Larkin Jr Ttee Larkin Family Charitable Remainder UNITR UA Dtd 06/27/2001 C/O Thomas E Larkin Jr 865 S Figueroa St Los Angeles CA 90017-2543		59,790	Record		27.67	%
Transamerica Premier Institutional Diversified Equity Fund	Institutional	Transamerica Investment Management Seed Money Account Attn: Travis Weimer 109 N Main St Ste 700 Dayton OH 45402-1127		55,830	Beneficial		25.83	%
Transamerica Premier Institutional Diversified Equity Fund	Institutional	Martom LLC C/O Thomas E Larkin Jr 865 S Figueroa St Los Angeles CA 90017-2543		31,864	Beneficial		14.74	%
Transamerica Premier Institutional Equity Fund	Institutional	Charles Schwab & Co Inc Mutual Funds Dept 101 Montgomery St San Francisco CA 94104-4151		3,581,939	Beneficial		37.67	%
Transamerica Premier Institutional Equity Fund	Institutional	Reliance Trust Company Ttee FBO Lifestyles R/R PO Box 48529 Atlanta GA 30362-1529		2,451,350	Beneficial		25.78	%

168

					Beneficial
Fund	Share Class	Name and Address	Number of Shares		or Record	Pct
Transamerica Premier Institutional Equity Fund	Institutional	SEI Private Trust Company C/O Id835 Citizens Flint One Freedom Valley Dr Oaks PA 19456-9989		628,639	Beneficial		6.61	%
Transamerica Premier Institutional Equity Fund	Institutional	Reliance Trust Company Ttee FBO Lifestyles C/R PO Box 48529 Atlanta GA 30362-1529		581,155	Beneficial		6.11	%
Transamerica Science & Technology	I	Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294		7,516,965	Beneficial		48.52	%
Transamerica Science & Technology	I	Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294		4,276,855	Beneficial		27.61	%
Transamerica Science & Technology	I	Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		2,696,616	Beneficial		17.41	%
Transamerica Science & Technology	I	Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		902,032	Beneficial		5.82	%
Transamerica Science & Technology	C	Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484		45,442	Beneficial		9.50	%
Transamerica Templeton Global	C	Citigroup Global Markets Inc 00109801250 House Account Attn: Peter Booth 333 W 34Th St Fl 7 New York NY 10001-2402		63,683	Beneficial		9.37	%

169

     To the knowledge of each Destination Fund, as of August 7, 2009, the following persons owned of record or beneficially 5% or more of the outstanding shares of the indicated classes of the Destination Fund.

					Beneficial
Fund	Share Class	Name and Address	Number of Shares		or Record	Pct
Transamerica Balanced	C	Citigroup Global Markets Inc 00109801250 House Account Attn: Peter Booth 333 W 34Th St Fl 7 New York NY 10001-2402		89,842	Beneficial		8.96	%
Transamerica Equity	I	Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294		31,352,988	Beneficial		46.24	%
Transamerica Equity	I	Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294		20,147,190	Beneficial		29.71	%
Transamerica Equity	I	Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		12,473,646	Beneficial		18.40	%
Transamerica Equity	I	Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		3,393,933	Beneficial		5.01	%
Transamerica Equity	C	Citigroup Global Markets Inc 00109801250 House Account Attn: Peter Booth 333 W 34Th St Fl 7 New York NY 10001-2402		450,281	Beneficial		7.84	%
Transamerica Flexible Income	I	Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		3,394,945	Beneficial		22.77	%
Transamerica Flexible Income	I	Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		2,995,642	Beneficial		20.10	%
Transamerica Flexible Income	I	Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294		2,582,471	Beneficial		17.32	%
Transamerica Flexible Income	I	Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		2,100,227	Beneficial		14.09	%
Transamerica Flexible Income	I	Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		1,909,499	Beneficial		12.81	%
Transamerica Flexible Income	I	Transamerica Asset Allocation — Conservative VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		1,850,995	Beneficial		12.42	%
Transamerica Flexible Income	C	Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484		160,817	Beneficial		14.76	%

170

					Beneficial
Fund	Share Class	Name and Address	Number of Shares		or Record	Pct
Transamerica Flexible Income	C	Citigroup Global Markets Inc 00109801250 House Account Attn: Peter Booth 333 W 34Th St Fl 7 New York NY 10001-2402		105,712	Beneficial		9.70	%
Transamerica Flexible Income	B	Merrill Lynch Pierce Fenner & Smith Inc FBO of Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484		94,657	Beneficial		9.50	%
Transamerica Growth Opportunities	I	Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294		6,308,264	Beneficial		45.31	%
Transamerica Growth Opportunities	I	Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294		4,277,090	Beneficial		30.72	%
Transamerica Growth Opportunities	I	Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		2,202,984	Beneficial		15.82	%
Transamerica Growth Opportunities	I	Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294		1,021,920	Beneficial		7.34	%

          Class P shares of each Destination Fund are newly offered. Therefore, no Class P shares were outstanding as of the date of this Information Statement/Prospectus.

EXPERTS

Target Funds

          The financial statements and financial highlights of each Target Fund for the past five fiscal years are incorporated by reference into this Information Statement/Prospectus.

          For Target Funds that are Transamerica Premier Funds, the financial statements and financial highlights of each such Target Fund for its most recent fiscal year end December 31, 2008 have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their report thereon incorporated by reference into this Information Statement/Prospectus. For Target Funds that are Transamerica Funds, the financial statements and financial highlights of each such Target Fund for its most recent fiscal year end October 31, 2008 have been audited by PricewaterhouseCoopers LLP, independent registered certified public accounting firm, as set forth in their report thereon incorporated by reference into this Information Statement/Prospectus. Such financial statements and financial highlights are incorporated by reference herein in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

171

Destination Funds

     The financial statements and financial highlights of each Destination Fund for the past five fiscal years or since inception of the Destination Fund and any semi-annual period, as applicable, are incorporated by reference into this Information Statement/Prospectus. The financial statements and financial highlights of each Destination Fund for its most recent fiscal year end October 31, 2008 have been audited by PricewaterhouseCoopers LLP, independent registered certified public accounting firm, as set forth in their report thereon incorporated by reference into this Information Statement/Prospectus. Such financial statements and financial highlights are incorporated by reference herein in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

AVAILABLE INFORMATION

     You can obtain more free information about each Fund from your investment firm or by writing to your portfolio at 570 Carillon Parkway, St. Petersburg, Florida 33716. You may also call [1-800-851-9777].

     Each Fund’s statement of additional information and shareholder reports are available free of charge on the Funds’ website at www.transamericafunds.com (select either “Transamerica Premier Funds” or “Transamerica Funds” for the Target Funds or “Transamerica Funds” for the Destination Funds).

     Shareholder reports. Annual and semi-annual reports to shareholders, and quarterly reports filed with the SEC, provide information about each Fund’s investments. An annual report discusses market conditions and investment strategies that significantly affected each Fund’s performance during its last fiscal year.

     Each Fund is subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and the 1940 Act and files reports, proxy statements and other information with the SEC. These reports, proxy statements and other information filed by the Funds and their predecessors can be inspected and copied (for a duplication fee) at the public reference facilities of the SEC at 100 F Street, N.E., Washington, DC 20549. Copies of these materials can also be obtained by mail from the Public Reference Branch, Office of Consumer Affairs and Information Services, Securities and Exchange Commission, Washington, DC 20549, at prescribed rates. In addition, copies of these documents may be viewed on-screen or downloaded from the SEC’s Internet site at www.sec.gov.

By Order of the Board of Directors,

[                    ]
Dennis P. Gallagher, Esq., Secretary
Transamerica Investors, Inc.

St. Petersburg, Florida
[                    ], 2009

172

EXHIBIT A

FORM OF AGREEMENT AND PLAN OF REORGANIZATION

     This AGREEMENT AND PLAN OF REORGANIZATION (“Agreement”) is made as of this [ ] day of [ ], 2009, by and among Transamerica Funds, a Delaware statutory Trust (the “Acquiring Entity”), with its principal place of business at 570 Carillon Parkway, St. Petersburg, Florida 33716, on behalf of each of its series listed on Exhibit A attached hereto (each, an “Acquiring Fund”), and [Transamerica Funds/Transamerica Investors, Inc.], a [ ] (the “Acquired Entity”), with its principal place of business at 570 Carillon Parkway, St. Petersburg, Florida 33716, on behalf of each of its series listed on Exhibit A attached hereto (each, an “Acquired Fund”), and, solely for purposes of paragraph 10.2 hereof, Transamerica Asset Management, Inc. (“TAM”).

     WHEREAS, each Acquired Fund and Acquiring Fund is a series of an open-end management investment company registered pursuant to the Investment Company Act of 1940, as amended (the “1940 Act”);

     WHEREAS, it is intended that, for United States federal income tax purposes (i) each transaction contemplated by this Agreement constitute a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) this Agreement constitute a plan of reorganization within the meaning of Section 368 of the Code and Treasury Regulations Section 1.368-2(g);

     WHEREAS, each reorganization of an Acquired Fund listed on Exhibit A will consist of (1) the sale, assignment, conveyance, transfer and delivery of all of the property and assets of the Acquired Fund to the corresponding Acquiring Fund listed on Exhibit A (as to each Acquired Fund, the “corresponding Acquiring Fund”) in exchange solely for (a) shares of the classes of shares of beneficial interest of that Acquiring Fund (the “Acquiring Fund Shares”) corresponding to the classes of outstanding shares [of beneficial interest] of the Acquired Fund (the “Acquired Fund Shares”), as described herein, and (b) the assumption by the Acquiring Fund of all liabilities of the Acquired Fund, and (2) the subsequent distribution of the Acquiring Fund Shares (which shall then constitute all of the assets of the Acquired Fund) to the shareholders of the Acquired Fund in complete redemption of the Acquired Fund Shares and the termination of the Acquired Fund, as provided herein (each, a “Reorganization”), all upon the terms and conditions hereinafter set forth in this Agreement;

     WHEREAS, the Board of Trustees of the Acquiring Entity (the “Acquiring Entity Board”) has determined, with respect to each Acquiring Fund listed on Exhibit A, that the sale, assignment, conveyance, transfer and delivery of all of the property and assets of the corresponding Acquired Fund listed on Exhibit A (as to each Acquiring Fund, the “corresponding Acquired Fund”) for Acquiring Fund Shares and the assumption of all liabilities of that Acquired Fund by the Acquiring Fund is in the best interests of the Acquiring Fund and its shareholders and that the interests of the existing shareholders of the Acquiring Fund will not be diluted as a result of this transaction; and

     WHEREAS, the Board of Trustees/Directors of the Acquired Entity (the “Acquired Entity Board”) has determined, with respect to each Acquired Fund, that the sale, assignment, conveyance, transfer and delivery of all of the property and assets of the Acquired Fund for Acquiring Fund Shares and the assumption of all liabilities of the Acquired Fund by the corresponding Acquiring Fund is in the best interests of the Acquired Fund and its shareholders and that the interests of the existing shareholders of the Acquired Fund will not be diluted as a result of this transaction;

     NOW, THEREFORE, in consideration of the premises and of the covenants and agreements hereinafter set forth, the parties hereto covenant and agree as follows:

A-1

1. TRANSFER OF ASSETS OF EACH ACQUIRED FUND TO THE CORRESPONDING ACQUIRING FUND IN EXCHANGE FOR ACQUIRING FUND SHARES IN SUCH ACQUIRING FUND, ASSUMPTION OF ALL LIABILITIES OF THAT ACQUIRED FUND AND TERMINATION OF THAT ACQUIRED FUND

     1.1 Subject to requisite approvals and the other terms and conditions herein set forth and on the basis of the representations and warranties contained herein, the Acquired Entity, on behalf of each Acquired Fund listed on Exhibit A, agrees to sell, assign, convey, transfer and deliver all of its property and assets attributable to that Acquired Fund, as set forth in paragraph 1.2, to the corresponding Acquiring Fund, and the Acquiring Entity, on behalf of that Acquiring Fund, agrees in exchange therefor: (a) to deliver to the corresponding Acquired Fund the number of full and fractional shares of each class of Acquiring Fund Shares of that Acquiring Fund corresponding to each class of Acquired Fund Shares of the corresponding Acquired Fund as of the time and date set forth in paragraph 3.1, determined by dividing the value of the Acquired Entity’s net assets with respect to each class of Acquired Fund Shares of the corresponding Acquired Fund (computed in the manner and as of the time and date set forth in paragraph 2.1) by the net asset value of one share of the corresponding class of Acquiring Fund Shares of that Acquiring Fund (computed in the manner and as of the time and date set forth in paragraph 2.2); and (b) to assume all liabilities of the corresponding Acquired Fund as set forth in paragraph 1.2. Such transactions shall take place on a closing date as provided for in paragraph 3.1 (the “Closing Date”). Exhibit A attached hereto shows each Acquiring Fund and its classes of shares and the corresponding Acquired Fund and its classes of shares. For purposes of this Agreement, each class of shares of each Acquired Fund as set forth on Exhibit A corresponds to the class of shares of the corresponding Acquiring Fund as set forth on such Exhibit, the term “Acquiring Fund Shares” should be read to include each such class of shares of such Acquiring Fund, and the term “Acquired Fund Shares” should be read to include each such class of shares of such Acquired Fund.

     1.2 The property and assets of the Acquired Entity attributable to each Acquired Fund to be sold, assigned, conveyed, transferred and delivered to and acquired by the Acquiring Entity, on behalf of the corresponding Acquiring Fund, shall consist of all assets and property of every kind and nature of the Acquired Fund, including, without limitation, all rights, receivables (including dividend, interest and other receivables), cash, cash equivalents, claims (whether absolute or contingent, known or unknown), securities, commodities and futures interests, good will and other intangible property, any deferred or prepaid expenses and all interests, rights, privileges and powers, the Acquired Fund owns at the Valuation Date (as defined in paragraph 2.1) (collectively, “Assets”). The Acquiring Entity, on behalf of each Acquiring Fund, shall assume all of the liabilities and obligations of the corresponding Acquired Fund, including, without limitation, all indemnification obligations of such Acquired Fund with respect to the current and former members of the Acquired Entity Board and officers of the Acquired Entity, whether accrued or contingent, known or unknown, existing at the Valuation Date (collectively, “Liabilities”). Each Acquired Fund will promptly assign, convey, transfer and deliver to the Acquiring Entity, on behalf of the corresponding Acquiring Fund, any rights, stock dividends, cash dividends or other securities received by the Acquired Fund after the Closing Date as stock dividends, cash dividends or other distributions on or with respect to the property and assets transferred, which rights, stock dividends, cash dividends and other securities shall be deemed included in the property and assets transferred to the Acquiring Entity, on behalf of the corresponding Acquiring Fund, at the Closing Date and shall not be separately valued, in which case any such distribution that remains unpaid as of the Closing Date shall be included in the determination of the value of the assets of the Acquired Fund acquired by the Acquiring Entity on behalf of the corresponding Acquiring Fund.

     1.3 Immediately following the actions contemplated by paragraph 1.1, the Acquired Entity shall take such actions as may be necessary or appropriate to complete the liquidation of each Acquired Fund. To complete the liquidation, the Acquired Entity, on behalf of each Acquired Fund, shall (a) distribute to the shareholders of record with respect to each class of the applicable Acquired Fund Shares of each Acquired Fund as of the Closing Date (“Acquired Fund Shareholders”), on a pro rata basis, the Acquiring Fund Shares of the corresponding class of the corresponding Acquiring Fund received by the Acquired Entity, on behalf of that Acquired Fund, pursuant to paragraph 1.1, in complete redemption of such Acquired Fund Shares, and (b)

A-2

terminate the Acquired Fund in accordance with applicable state law. Such distribution and redemption shall be accomplished, with respect to each class of Acquired Fund Shares, by the transfer of the corresponding class of Acquiring Fund Shares then credited to the account of the Acquired Fund on the books of the corresponding Acquiring Fund to open accounts on the share records of the Acquiring Fund in the names of the Acquired Fund Shareholders. The aggregate net asset value of each class of Acquiring Fund Shares to be so credited to each of the corresponding Acquired Fund Shareholders holding Acquired Fund Shares of the corresponding class shall be equal to the aggregate net asset value of the Acquired Fund Shares of that class owned by those Acquired Fund Shareholders on the Closing Date. All issued Acquired Fund Shares will be canceled on the books of the Acquired Fund. The Acquiring Fund shall not issue certificates representing any class of Acquiring Fund Shares in connection with such exchange.

     1.4 Ownership of Acquiring Fund Shares will be shown on the books of the Acquiring Fund as maintained by the Acquiring Fund’s transfer agent.

     1.5 Any reporting responsibility of an Acquired Fund, including, but not limited to, the responsibility for filing regulatory reports, tax returns, or other documents with the Securities and Exchange Commission (“Commission”), any state securities commission, and any federal, state or local tax authorities or any other relevant regulatory authority, is and shall remain the responsibility of the Acquired Entity, on behalf of such Acquired Fund. The Acquiring Entity shall fully cooperate to the extent necessary or desirable for these responsibilities to be discharged.

2. VALUATION

     2.1 The value of the Assets and the amount of the Liabilities of each Acquired Fund, and the amounts thereof attributable to each class of shares of that Acquired Fund, shall be determined as of the time for calculation of its net asset value as set forth in the then-current prospectus for the Acquired Fund, and after the declaration of any dividends by the Acquired Fund, on the applicable Closing Date (such time and date being hereinafter called the “Valuation Date”), computed using the valuation procedures established by the Acquired Entity Board and the Acquiring Entity Board. All computations of value and amounts shall be subject to confirmation by the independent registered public accounting firm for the applicable Acquired Fund.

     2.2 The net asset value per share of each class of the Acquiring Fund Shares of each Acquiring Fund shall be determined as of the time for calculation of the applicable Acquiring Fund’s net asset value as set forth in the then-current prospectus for the Acquiring Fund on the Valuation Date, computed using the valuation procedures established by the Acquiring Entity Board. All computations of value and amounts shall be made by the independent registered public accounting for the Acquiring Fund.

3. CLOSING AND CLOSING DATE

     3.1 Subject to the terms and conditions set forth herein, the Closing Date shall be [ ], 2009, or such other date as the parties may agree. All acts taking place at the closing of the transactions provided for in this Agreement (“Closing”) shall be deemed to take place simultaneously as of the “close of business” on the Closing Date unless otherwise agreed to by the parties. The close of business on the Closing Date shall be as of 4:00 p.m., Eastern Time or, as to any Reorganization, such later time on that date as the applicable Acquired Fund’s net asset value and/or the net asset value per share of the class of shares of the corresponding Acquiring Fund is calculated in accordance with Article 2 and after the declaration of any dividends. The Closing shall be held at the offices of TAM, 570 Carillon Parkway, St. Petersburg, Florida 33716, or at such other time and/or place as the parties may agree.

     3.2 At the Closing of each Reorganization, the Acquired Entity shall direct State Street Bank and Trust Company (the “Custodian”) to transfer ownership of the Assets from the accounts of the applicable Acquired Fund that the Custodian maintains as custodian for the Acquired Fund to the accounts of the corresponding Acquiring Fund that the Custodian maintains as custodian for the Acquiring Fund. The Acquired

A-3

Entity shall, within one business day after the Closing for each Reorganization, deliver to the applicable Acquiring Entity a certificate of an authorized officer stating that (i) the Assets of the corresponding Acquired Fund have been so transferred as of the Closing Date, and (ii) all necessary taxes in connection with the delivery of the Assets of that Acquired Fund, including all applicable federal and state stock transfer stamps, if any, have been paid or provision for payment has been made.

     3.3 The Acquired Entity shall direct Transamerica Fund Services, Inc., in its capacity as transfer agent for each Acquired Fund (“Transfer Agent”), to deliver to the Acquiring Entity, within one business day after the Closing of each Reorganization, a certificate of an authorized officer stating that its records contain the name and address of each Acquired Fund Shareholder of the applicable Acquired Fund and the class, number and percentage ownership of the outstanding Acquired Fund Shares owned by each such shareholder immediately prior to the Closing. At the Closing of each Reorganization, the applicable Acquiring Fund shall deliver to the Secretary of the corresponding Acquired Fund a confirmation evidencing that (a) the appropriate number of Acquiring Fund Shares of the appropriate class or classes have been credited to the Acquired Fund’s account on the books of such Acquiring Fund pursuant to paragraph 1.1 prior to the actions contemplated by paragraph 1.3 and (b) the appropriate number of Acquiring Fund Shares of the appropriate class or classes have been credited to the accounts of the Acquired Fund Shareholders on the books of such Acquiring Fund pursuant to paragraph 1.3. At the applicable Closing, each party shall deliver to the other party such bills of sale, checks, assignments, share certificates, if any, receipts or other documents as the other party or its counsel may reasonably request.

     3.4 In the event that on the Valuation Date (a) the New York Stock Exchange or another primary trading market for portfolio securities of an Acquiring Fund or an Acquired Fund (each, an “Exchange”) shall be closed to trading or trading thereupon shall be restricted, or (b) trading or the reporting of trading on such Exchange or elsewhere shall be disrupted so that accurate appraisal of the value of the net assets of such Acquired Fund or such Acquiring Fund is impracticable (in the judgment of the Acquiring Entity Board with respect to such Acquiring Fund and the Acquired Entity Board with respect to such Acquired Fund), the Closing Date for the applicable Reorganization shall be postponed until the first Friday (that is also a business day) after the day when trading shall have been fully resumed and reporting shall have been restored.

4. REPRESENTATIONS AND WARRANTIES

     4.1 Except as has been fully disclosed to the Acquiring Entity in Schedule 4.1 of this Agreement, the Acquired Entity, on behalf of each Acquired Fund, represents and warrants to the Acquiring Entity and the corresponding Acquiring Fund as follows:

          (a) Such Acquired Fund is duly established as a series of the Acquired Entity, which is a [corporation/statutory trust] duly organized, validly existing and in good standing under the laws of the State of [Maryland/Delaware], with power under its charter documents, as amended (the “Acquired Entity Charter”), to own all of its assets and to carry on its business as it is being conducted as of the date hereof. The Acquired Entity is duly qualified to do business as a foreign [trust/corporation] in each jurisdiction in which the conduct of its business makes such qualification necessary except where the failure to so qualify would not have a material adverse effect on the condition (financial or otherwise), business, properties, net assets or results of operations of the Acquired Entity. The Acquired Entity has all necessary federal, state and local authorization to carry on its business as now being conducted and to fulfill the terms of this Agreement, except as set forth in paragraph 4.1(c).

          (b) The Acquired Entity is a registered open-end management investment company, and its registration with the Commission as an investment company under the 1940 Act, and the registration of each class of Acquired Fund Shares under the Securities Act of 1933, as amended (the “1933 Act”), is in full force and effect.

A-4

          (c) No consent, approval, authorization, or order of any court or governmental authority is required for the consummation by the Acquired Fund of the transactions contemplated herein, except such as may be required under the 1933 Act, the Securities Exchange Act of 1934 (the “1934 Act”), the 1940 Act, state securities laws and the Hart-Scott-Rodino Act.

          (d) The current prospectus and statement of additional information of such Acquired Fund (true and correct copies of which have been delivered to the Acquiring Entity) and each prospectus and statement of additional information of the Acquired Fund used during the three (3) years prior to the date of this Agreement conforms or conformed at the time of its use in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the rules and regulations of the Commission thereunder and does not or did not at the time of its use include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not materially misleading.

          (e) On the Closing Date, the Acquired Entity, on behalf of such Acquired Fund, will have good and marketable title to such Acquired Fund’s Assets and full right, power and authority to sell, assign, convey, transfer and deliver such Assets hereunder free of any liens or other encumbrances, and upon delivery and payment for the Assets, the Acquiring Entity, on behalf of the corresponding Acquiring Fund, will acquire good and marketable title thereto, subject to no restrictions on the full transfer thereof, excluding such restrictions as might arise under the 1933 Act.

          (f) The Acquired Fund is not engaged currently, and the execution, delivery and performance of this Agreement by the Acquired Entity, on behalf of such Acquired Fund, will not result, in a material violation of [Delaware/Maryland] law or of the Acquired Entity Charter or the by-laws of the Acquired Entity, or of any agreement, indenture, instrument, contract, lease or other undertaking to which the Acquired Entity, on behalf of such Acquired Fund, is a party or by which it is bound, and the execution, delivery and performance of this Agreement by the Acquired Entity, on behalf of such Acquired Fund, will not result in the acceleration of any material obligation, or the imposition of any material penalty, under any agreement, indenture, instrument, contract, lease, judgment or decree to which the Acquired Entity, on behalf of such Acquired Fund, is a party or by which it is bound.

          (g) All material contracts or other commitments of such Acquired Fund (other than this Agreement, certain investment contracts, including options, futures, swaps and forward contracts, the indemnification agreements of the current and former members of the Acquired Entity Board, and those contracts listed in Schedule 4.1) will terminate without liability to such Acquired Fund on or prior to the Closing Date. Each contract listed in Schedule 4.1 is a valid, binding and enforceable obligation of such Acquired Fund and, to the Acquired Fund’s knowledge, the other parties thereto (assuming due authorization, execution and delivery by the other parties thereto) and the assignment by such Acquired Fund to the corresponding Acquiring Fund of each such contract will not result in the termination of such contract, any breach or default thereunder by such Acquired Fund or the imposition of any penalty thereunder.

          (h) No litigation or administrative proceeding or investigation of or before any court or governmental body is pending or, to the Acquired Entity’s knowledge, threatened against the Acquired Entity, with respect to such Acquired Fund or any of its properties or assets, that, if adversely determined, would materially and adversely affect its financial condition or the conduct of such Acquired Fund’s business. The Acquired Entity, on behalf of such Acquired Fund, is not a party to or subject to the provisions of any order, decree or judgment of any court or governmental body that materially and adversely affects such Acquired Fund’s business or the Acquired Entity’s ability to consummate the transactions herein contemplated on behalf of such Acquired Fund.

          (i) The Statement of Assets and Liabilities, Statements of Operations and Changes in Net Assets and Schedule of Investments of such Acquired Fund as at the last day of and for the most recently completed fiscal year of such Acquired Fund prior to the date of this Agreement have been audited by [Ernst & Young

A-5

LLP/PricewaterhouseCoopers LLP], independent registered public accounting firm, and are in accordance with accounting principles generally accepted in the United States of America (“GAAP”) consistently applied, and such statements (true and correct copies of which have been furnished to the Acquiring Entity) present fairly, in all material respects, the financial condition of such Acquired Fund as of such date and for such period in accordance with GAAP, and there are no known contingent, accrued or other liabilities of such Acquired Fund required to be reflected on a balance sheet (including the notes thereto) in accordance with GAAP as of such date that are not disclosed therein.

          (j) Since the last day of the most recently completed fiscal year of such Acquired Fund prior to the date of this Agreement, there has not been any material adverse change in such Acquired Fund’s financial condition, assets, liabilities or business, or any incurrence by the Acquired Fund of indebtedness for money borrowed maturing more than one year from the date such indebtedness was incurred. For the purposes of this subparagraph (j), a decline in net asset value per share of Acquired Fund Shares due to declines in market values of securities held by such Acquired Fund, the discharge of Acquired Fund liabilities, or the redemption of Acquired Fund Shares by shareholders of such Acquired Fund shall not constitute a material adverse change.

          (k) All federal and other tax returns, dividend reporting forms and other tax-related reports of such Acquired Fund required by law to have been filed (taking into account any extensions) shall have been timely filed (taking such extensions into account) and shall be correct in all material respects, and all federal and other taxes shown as due or required to be shown as due from the Acquired Fund on such tax returns, forms and reports shall have been paid or provision shall have been made for the payment thereof and, to the best of the Acquired Entity’s knowledge, no such return is currently under audit and no outstanding assessment of any tax has been asserted with respect to such returns.

          (l) Such Acquired Fund is a separate series of the Acquired Entity that is treated as a corporation separate from any and all other series of the Acquired Entity under Section 851(g) of the Code. For each taxable year of its operation (including the current taxable year, assuming such year ends on the Closing Date), such Acquired Fund has met (or will meet) the requirements of Subchapter M of Chapter 1 of the Code for qualification and treatment as a “regulated investment company,” has elected to be treated as such, and has been (or will be) eligible to compute and has computed (or will compute) its federal income tax under Section 852 of the Code. For each taxable year of its operation (including the current taxable year, assuming such year ends on the Closing Date), such Acquired Fund will have distributed, on or before the Closing Date, substantially all of (a) its investment company taxable income (as defined in the Code) (computed without regard to any deduction for dividends paid), (b) the excess of its interest income excludable from gross income under Section 103(a) of the Code, if any, over its deductions disallowed under Section 265 and Section 171(a)(2) of the Code, and (c) any net capital gain (as defined in the Code) (after reduction for any allowable capital loss carryover) that has accrued or been recognized, respectively, through the Closing Date such that for all tax periods ending on or before the Closing Date (and treating the current taxable year as ending on the Closing Date) such Acquired Fund will not have any unpaid tax liability under Section 852 of the Code. For each calendar year of its operation (including the calendar year that includes the Closing Date), such Acquired Fund will have made such distributions, on or before the Closing Date, as are necessary so that for all calendar years ending on or before the Closing Date, and for the calendar year that includes the Closing Date, such Acquired Fund will not have any unpaid tax liability under Section 4982 of the Code.

          (m) All issued and outstanding Acquired Fund Shares of such Acquired Fund are, and on the Closing Date will be, duly authorized and validly and legally issued and outstanding, fully paid and non-assessable by the Acquired Entity and have been offered and sold in any state, territory or the District of Columbia in compliance in all material respects with applicable registration requirements of all applicable federal and state securities laws. All of the issued and outstanding Acquired Fund Shares of such Acquired Fund will, at the time of Closing, be held by the persons and in the amounts set forth in the records of the Transfer Agent, on behalf of such Acquired Fund, as provided in paragraph 3.3. Such Acquired Fund does not have outstanding any options, warrants or other rights to subscribe for or purchase any of the Acquired Fund

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Shares of such Acquired Fund, nor is there outstanding any security convertible into any of the Acquired Fund Shares of such Acquired Fund.

          (n) The execution, delivery and performance of this Agreement, and the transactions contemplated herein, have been duly authorized by all necessary action on the part of the Acquired Entity Board, on behalf of such Acquired Fund, and this Agreement constitutes a valid and binding obligation of the Acquired Entity, on behalf of such Acquired Fund, enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, reorganization, moratorium and other laws relating to or affecting creditors’ rights and to general equity principles.

          (o) The information to be furnished by the Acquired Entity, on behalf of such Acquired Fund, for use in any documents filed or to be filed with any federal, state or local regulatory authority, which may be necessary in connection with the transactions contemplated hereby, shall be accurate and complete in all material respects and shall comply in all material respects with federal securities and other laws and regulations thereunder applicable thereto.

          (p) The Registration Statement (as defined in paragraph 5.8), insofar as it relates to such Acquired Fund, from the effective date of the Registration Statement through the Closing Date, will (i) not contain any statement which, at the time and in the light of the circumstances under which it is made, is false or misleading with respect to any material fact, or which omits to state any material fact necessary in order to make the statements therein not false or misleading (provided that this representation and warranty shall not apply to statements in or omissions from the Registration Statement made in reliance upon and in conformity with information that was furnished by the Acquiring Entity, on behalf of the corresponding Acquiring Fund, for use therein), and (ii) comply in all material respects with the provisions of the 1934 Act and the 1940 Act and the rules and regulations thereunder.

     4.2 Except as has been fully disclosed to the Acquired Entity in Schedule 4.2 to this Agreement, the Acquiring Entity, on behalf of each Acquiring Fund, represents and warrants to the Acquired Entity and the corresponding Acquired Fund as follows:

          (a) Such Acquiring Fund is duly established as a series of the Acquiring Entity, which is a statutory trust duly organized, validly existing and in good standing under the laws of the State of Delaware, with the power under the Acquiring Entity’s Declaration of Trust, as amended (the “Acquiring Entity Charter”), to own all of the assets of such Acquiring Fund and to carry on its business as it is being conducted as of the date hereof. The Acquiring Entity is duly qualified to do business as a foreign trust in each jurisdiction in which the conduct of its business makes such qualification necessary except where the failure to so qualify would not have a material adverse effect on the condition (financial or otherwise), business, properties, net assets or results of operations of the Acquiring Entity. The Acquiring Entity has all necessary federal, state and local authorization to carry on its business as now being conducted and to fulfill the terms of this Agreement except as described in paragraph 4.2(c).

          (b) The Acquiring Entity is a registered open-end management investment company, and its registration with the Commission as an investment company under the 1940 Act, and the registration of each class of Acquiring Fund Shares under the 1933 Act, is in full force and effect or will be in full force and effect as of the Closing Date.

          (c) No consent, approval, authorization, or order of any court or governmental authority is required for the consummation by the Acquiring Fund of the transactions contemplated herein, except such as may be required under the 1933 Act, the 1934 Act, the 1940 Act, state securities laws and the Hart-Scott-Rodino Act.

          (d) The current prospectus and statement of additional information of such Acquiring Fund (true and correct copies of which have been delivered to the Acquired Entity) and each prospectus and statement of additional information of such Acquiring Fund used during the three (3) years prior to the date of this

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Agreement conforms or conformed at the time of its use in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the rules and regulations of the Commission thereunder and does not or did not at the time of its use include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not materially misleading.

          (e) Such Acquiring Fund is not engaged currently, and the execution, delivery and performance of this Agreement by the Acquiring Entity, on behalf of such Acquiring Fund, will not result, in a material violation of Delaware law or the Acquiring Entity Charter or the by-laws of the Acquiring Entity, or of any agreement, indenture, instrument, contract, lease or other undertaking to which the Acquiring Entity, on behalf of such Acquiring Fund, is a party or by which it is bound, and the execution, delivery and performance of this Agreement by the Acquiring Entity, on behalf of such Acquiring Fund, will not result in the acceleration of any material obligation, or the imposition of any material penalty, under any agreement, indenture, instrument, contract, lease, judgment or decree to which the Acquiring Entity, on behalf of such Acquiring Fund, is a party or by which it is bound.

          (f) No litigation or administrative proceeding or investigation of or before any court or governmental body is pending or, to the Acquiring Entity’s knowledge, threatened against the Acquiring Entity, with respect to such Acquiring Fund, or any of its properties or assets, that, if adversely determined, would materially and adversely affect its financial condition or the conduct of such Acquiring Fund’s business. The Acquiring Entity, on behalf of such Acquiring Fund, is not a party to or subject to the provisions of any order, decree or judgment of any court or governmental body that materially and adversely affects such Acquiring Fund’s business or the Acquiring Entity’s ability to consummate the transactions herein contemplated on behalf of such Acquiring Fund.

          (g) The Statement of Assets and Liabilities, Statements of Operations and Changes in Net Assets and Schedule of Investments of such Acquiring Fund as at the last day of and for the most recently completed fiscal year of such Acquiring Fund prior to the date of this Agreement have been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, and are in accordance with GAAP consistently applied, and such statements (true and correct copies of which have been furnished to the Acquired Entity) present fairly, in all material respects, the financial condition of such Acquiring Fund as of such date and for such period in accordance with GAAP, and there are no known contingent, accrued or other liabilities of such Acquiring Fund required to be reflected on a balance sheet (including the notes thereto) in accordance with GAAP as of such date that are not disclosed therein.

          (h) Since the last day of the most recently completed fiscal year of such Acquiring Fund prior to the date of this Agreement, there has not been any material adverse change in such Acquiring Fund’s financial condition, assets, liabilities or business, or any incurrence by such Acquiring Fund of indebtedness for money borrowed maturing more than one year from the date such indebtedness was incurred. For the purposes of this subparagraph (h), a decline in net asset value per share of Acquiring Fund Shares due to declines in market values of securities held by such Acquiring Fund, the discharge of Acquiring Fund liabilities, or the redemption of Acquiring Fund Shares by shareholders of such Acquiring Fund shall not constitute a material adverse change.

          (i) All federal and other tax returns, dividend reporting forms and other tax-related reports of such Acquiring Fund required by law to have been filed (taking into account any extensions) shall have been timely filed (taking such extensions into account) and shall be correct in all material respects, and all federal and other taxes shown as due or required to be shown as due from the Acquiring Fund on such tax returns, forms and reports shall have been paid or provision shall have been made for the payment thereof and, to the best of the Acquiring Entity’s knowledge, no such return is currently under audit and no outstanding assessment of any tax has been asserted with respect to such returns.

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          (j) Such Acquiring Fund is a separate series of the Acquiring Entity that is treated as a corporation separate from any and all other series of the Acquiring Entity under Section 851(g) of the Code. For each taxable year of its operation (including the taxable year that includes the Closing Date), such Acquiring Fund has met (or will meet) the requirements of Subchapter M of Chapter 1 of the Code for qualification and treatment as a “regulated investment company,” has elected to be treated as such, and has been (or will be) eligible to compute and has computed (or will compute) its federal income tax under Section 852 of the Code. For each taxable year of its operation ending prior to the Closing Date, such Acquiring Fund will have distributed (or will distribute pursuant to the provisions of Section 855 of the Code) substantially all of (a) its investment company taxable income (as defined in the Code) (computed without regard to any deduction for dividends paid), (b) the excess of its interest income excludable from gross income under Section 103(a) of the Code, if any, over its deductions disallowed under Section 265 and Section 171(a)(2) of the Code, and (c) any net capital gain (as defined in the Code) (after reduction for any capital loss carryover) such that for all tax periods ending prior to the Closing Date such Acquiring Fund will not have any unpaid tax liability under Section 852 of the Code. For each calendar year of its operation ending prior to the Closing Date, such Acquiring Fund will have made such distributions as are necessary so that for all calendar years ending prior to the Closing Date such Acquiring Fund will not have any unpaid tax liability under Section 4982 of the Code.

          (k) All issued and outstanding Acquiring Fund Shares are, and on the Closing Date will be, duly authorized and validly and legally issued and outstanding, fully paid and non-assessable by the Acquiring Entity and will have been offered and sold in any state, territory or the District of Columbia in compliance in all material respects with applicable registration requirements of all applicable federal and state securities laws. Such Acquiring Fund does not have outstanding any options, warrants or other rights to subscribe for or purchase any Acquiring Fund Shares, nor is there outstanding any security convertible into any Acquiring Fund Shares. All of the Acquiring Fund Shares to be issued and delivered to the Acquired Entity, for the account of the Acquired Fund Shareholders, pursuant to this Agreement, will on the Closing Date have been duly authorized and, when so issued and delivered, will be duly and validly and legally issued Acquiring Fund Shares and be fully paid and non-assessable by the Acquiring Entity.

          (l) The execution, delivery and performance of this Agreement, and the transactions contemplated herein, have been duly authorized by all necessary action on the part of the Acquiring Entity Board, on behalf of such Acquiring Fund, and this Agreement constitutes a valid and binding obligation of the Acquiring Entity, on behalf of such Acquiring Fund, enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, reorganization, moratorium and other laws relating to or affecting creditors’ rights and to general equity principles.

          (m) The information to be furnished by the Acquiring Entity, on behalf of such Acquiring Fund, for use in any documents filed or to be filed with any federal, state or local regulatory authority, which may be necessary in connection with the transactions contemplated hereby, shall be accurate and complete in all material respects and shall comply in all material respects with federal securities and other laws and regulations applicable thereto.

          (n) The Registration Statement (as defined in paragraph 5.8), insofar as it relates to such Acquiring Fund, from the effective date of the Registration Statement through the Closing Date, will (i) not contain any statement which, at the time and in the light of the circumstances under which it is made, is false or misleading with respect to any material fact, or which omits to state any material fact necessary to make the statements therein not false or misleading (provided that this representation and warranty shall not apply to statements in or omissions from the Registration Statement made in reliance upon and in conformity with information that was furnished by the Acquired Entity for use therein) and (ii) comply in all material respects with the provisions of the 1933 Act, the 1934 Act and the 1940 Act and the rules and regulations thereunder.

          [(o) The Post-Effective Amendments (as defined in paragraph 5.9) to be filed by the Acquiring Entity, insofar as they relate to such Acquiring Fund, pursuant to this Agreement will, on the effective date of

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the Post-Effective Amendments, comply in all material respects with the 1940 Act and the rules and regulations thereunder.]

5. COVENANTS

     The Acquired Entity, on behalf of each Acquired Fund, and the Acquiring Entity, on behalf of each Acquiring Fund, respectively, hereby further covenant as follows:

     5.1 The Acquired Fund and the Acquiring Fund each will operate its business in the ordinary course and shall comply in all material respects with all applicable laws, rules and regulations between the date hereof and the Closing Date, it being understood that such ordinary course of business will include the declaration and payment of customary dividends and other distributions, and any other distribution that may be advisable.

     5.2 The Acquiring Fund Shares to be acquired by such Acquired Fund hereunder are not being acquired for the purpose of making any distribution thereof, other than in accordance with the terms of this Agreement.

     5.3 The Acquired Entity, on behalf of each Acquired Fund, will assist the Acquiring Entity in obtaining such information as the Acquiring Entity reasonably requests concerning the beneficial ownership of the Acquired Fund Shares.

     5.4 Subject to the provisions of this Agreement, the Acquiring Entity, on behalf of each Acquiring Fund, and the Acquired Entity, on behalf of each Acquired Fund, each will take, or cause to be taken, all action, and do or cause to be done, all things reasonably necessary, proper or advisable to consummate and make effective the transactions contemplated by this Agreement.

     5.5 Each of the Acquiring Entity, on behalf of each Acquiring Fund, and the Acquired Entity, on behalf of each Acquired Fund, will use all reasonable efforts to fulfill or obtain the fulfillment of the conditions precedent to effect the transactions contemplated by this Agreement as promptly as practicable.

     5.6 The Acquired Entity, on behalf of each Acquired Fund, will, from time to time, as and when reasonably requested by the Acquiring Entity, execute and deliver or cause to be executed and delivered all such assignments and other instruments and will take or cause to be taken such further action as the Acquiring Entity, on behalf of the corresponding Acquiring Fund, may reasonably deem necessary or desirable in order to vest in and confirm (a) the Acquired Entity’s title to and possession of the Acquiring Fund Shares to be delivered hereunder and (b) the Acquiring Entity’s title to and possession of all the Assets, and to otherwise to carry out the intent and purpose of this Agreement.

     5.7 The Acquiring Entity, on behalf of each Acquiring Fund, will use all reasonable efforts to obtain the approvals and authorizations required by the 1933 Act, the 1940 Act and such of the state blue sky or securities laws as may be necessary in order to continue its operations after the Closing Date.

     5.8 The Acquiring Entity, on behalf of such Acquiring Fund, shall prepare and file a registration statement on Form N-14 in compliance with the 1933 Act, the 1934 Act and the 1940 Act and the rules and regulations thereunder with respect to the Reorganization (the “Registration Statement”). The Acquired Entity, on behalf of such Acquired Fund, will provide to the Acquiring Entity such information regarding the Acquired Fund as may be reasonably necessary for the preparation of the Registration Statement.

     [5.9 The Acquiring Entity, on behalf of Transamerica Diversified Equity, shall prepare and file one or more post-effective amendments to its registration statement on Form N-1A (the “Post-Effective Amendments”) to become effective on or before the Closing Date to register Transamerica Diversified Equity under the 1933 Act and the 1940 Act.]

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6. CONDITIONS PRECEDENT TO OBLIGATIONS OF EACH ACQUIRED FUND

     The obligations of the Acquired Entity, on behalf of each Acquired Fund, to consummate the Reorganization of such Acquired Fund shall be subject, at the Acquired Entity’s election, to the following conditions with respect to the applicable Acquired Fund:

     6.1 All representations and warranties of the Acquiring Entity, on behalf of such Acquiring Fund, contained in this Agreement shall be true and correct in all material respects as of the date hereof and, except as they may be affected by the transactions contemplated by this Agreement, as of the Closing Date, with the same force and effect as if made on and as of the Closing Date.

     6.2 The Acquiring Entity, on behalf of such Acquiring Fund, shall have performed all of the covenants and complied with all of the provisions required by this Agreement to be performed or complied with by the Acquiring Entity, on behalf of such Acquiring Fund, on or before the Closing Date.

     6.3 The Acquiring Entity, on behalf of such Acquiring Fund, shall have executed and delivered an assumption of the Liabilities of the corresponding Acquired Fund and all such other agreements and instruments as the Acquired Entity may reasonably deem necessary or desirable in order to vest in and confirm (a) such Acquired Fund’s title to and possession of the Acquiring Fund Shares to be delivered hereunder and (b) the Acquiring Entity’s assumption of all of the Liabilities, and to otherwise to carry out the intent and purpose of this Agreement.

     6.4 The Acquiring Entity, on behalf of such Acquiring Fund, shall have delivered to such Acquired Fund a certificate executed in the name of the Acquiring Entity, on behalf of such Acquiring Fund, by the Acquiring Entity’s President or Vice President and its Treasurer or Assistant Treasurer, in a form reasonably satisfactory to the Acquired Entity and dated as of the Closing Date, as to the matters set forth in paragraphs 6.1 and 6.2 and as to such other matters as the Acquired Entity shall reasonably request.

     6.5 The Acquiring Entity, on behalf of such Acquiring Fund, and the Acquired Entity, on behalf of the corresponding Acquired Fund, shall have agreed on the number of full and fractional Acquiring Fund Shares to be issued in connection with the Reorganization after such number has been calculated in accordance with paragraph 1.1.

7. CONDITIONS PRECEDENT TO OBLIGATIONS OF EACH ACQUIRING FUND

     The obligations of the Acquiring Entity, on behalf of each Acquiring Fund, to consummate the Reorganization of the corresponding Acquiring Fund shall be subject, at the Acquiring Entity’s election, to the following conditions with respect to the applicable Acquiring Fund:

     7.1 All representations and warranties of the Acquired Entity, on behalf of such Acquired Fund, contained in this Agreement shall be true and correct in all material respects as of the date hereof and, except as they may be affected by the transactions contemplated by this Agreement, as of the Closing Date, with the same force and effect as if made on and as of the Closing Date.

     7.2 The Acquired Entity, on behalf of such Acquired Fund, shall have performed all of the covenants and complied with all of the provisions required by this Agreement to be performed or complied with by the Acquired Entity, on behalf of such Acquired Fund, on or before the Closing Date.

     7.3 The Acquired Entity shall have delivered to the Acquiring Entity, on behalf of such Acquiring Fund, a Statement of Assets and Liabilities of such Acquired Fund as of the Closing Date, including a schedule of investments, certified by the Treasurer of the Acquired Entity on behalf of such Acquired Fund. The Acquired Entity, on behalf of such Acquired Fund, shall have executed and delivered all such assignments and other instruments of transfer as the Acquiring Entity may reasonably deem necessary or desirable in order to

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vest in and confirm (a) the Acquired Fund’s title to and possession of the Acquiring Fund Shares to be delivered hereunder and (b) the Acquiring Fund’s title to and possession of all the Assets and to otherwise to carry out the intent and purpose of this Agreement.

     7.4 The Acquired Entity, on behalf of such Acquired Fund, shall have delivered to the Acquiring Entity a certificate executed in the name of the Acquired Entity, on behalf of such Acquired Fund, by the Acquired Entity’s President or Vice President and its Treasurer or Assistant Treasurer, in a form reasonably satisfactory to the Acquiring Entity and dated as of the Closing Date, as to the matters set forth in paragraphs 7.1 and 7.2 and as to such other matters as the Acquiring Entity shall reasonably request.

     7.5 The Acquired Entity, on behalf of such Acquired Fund, and the Acquiring Entity, on behalf of such Acquiring Fund, shall have agreed on the number of full and fractional Acquiring Fund Shares to be issued by such Acquiring Fund in connection with the Reorganization after such number has been calculated in accordance with paragraph 1.1.

8. FURTHER CONDITIONS PRECEDENT TO OBLIGATIONS OF EACH ACQUIRING FUND AND EACH CORRESPONDING ACQUIRED FUND

     If any of the conditions set forth below have not been satisfied on or before the Closing Date with respect to the Acquired Entity, on behalf of each Acquired Fund, or the Acquiring Entity, on behalf of the corresponding Acquiring Fund, the other party to this Agreement shall be entitled on behalf of the corresponding Acquired Fund or Acquiring Fund, as applicable, at its option, to (and shall, in the case of a failure to satisfy the conditions set forth in paragraph 8.5) refuse to consummate the transactions contemplated by this Agreement with respect to the applicable Acquired Fund and its corresponding Acquiring Fund:

     8.1 On the applicable Closing Date, no court or governmental agency of competent jurisdiction shall have issued any order that remains in effect and that restrains or enjoins the Acquired Entity, with respect to such Acquired Fund, or the Acquiring Entity, with respect to such Acquiring Fund, from completing the transactions contemplated by this Agreement.

     8.2 All consents of other parties and all other consents, orders and permits of federal, state and local regulatory authorities deemed necessary by the Acquiring Entity or the Acquired Entity to permit consummation, in all material respects, of the transactions contemplated hereby shall have been obtained, except where failure to obtain any such consent, order or permit would not involve a risk of a material adverse effect on the assets or properties of such Acquiring Fund or such Acquired Fund, provided that either party hereto may for itself waive any of such conditions.

     8.3 The Registration Statement shall have become effective under the 1933 Act and no stop orders suspending the effectiveness thereof shall have been issued and, to the best knowledge of the parties hereto, no investigation or proceeding for that purpose shall have been instituted or be pending. [The Post-Effective Amendments shall have become effective, and no stop orders suspending the effectiveness thereof shall have been issued and, to the best knowledge of the parties hereto, no investigation or proceeding for that purpose shall have been instituted or be pending.]

     8.4 The parties shall have received the opinion of Bingham McCutchen LLP, dated the Closing Date, substantially to the effect that, based upon certain facts, assumptions and representations and upon certifications made by the Acquired Entity, on behalf of the applicable Acquired Fund, the Acquiring Entity, on behalf of the applicable Acquiring Fund, and their respective authorized officers, (i) the applicable Reorganization will constitute a reorganization within the meaning of Section 368(a) of the Code, and the applicable Acquired Fund and the corresponding Acquiring Fund will each be a “party to a reorganization” within the meaning of Section 368(b) of the Code; (ii) no gain or loss will be recognized by such Acquiring Fund upon receipt of the Assets of the corresponding Acquired Fund solely in exchange for the applicable Acquiring Fund Shares and the assumption by such Acquiring Fund of the Liabilities of the applicable Acquired

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Fund; (iii) the basis in the hands of such Acquiring Fund of the Assets of the corresponding Acquired Fund will be the same as the basis of such Assets in the hands of the Acquired Fund immediately prior to the transfer, increased by the amount of gain (or decreased by the amount of loss), if any, recognized by the Acquired Fund upon the transfer; (iv) the holding period of each Asset in the hands of such Acquiring Fund will include the period during which the Asset was held by such Acquired Fund (except where investment activities of the Acquiring Fund have the effect of reducing or eliminating the holding period with respect to an asset); (v) no gain or loss will be recognized by such Acquired Fund upon the transfer of its Assets to the corresponding Acquiring Fund in exchange for the applicable Acquiring Fund Shares and the assumption by the Acquiring Fund of the Liabilities of the Acquired Fund, or upon the distribution of the Acquiring Fund Shares by the Acquired Fund to its shareholders in complete liquidation, except for (A) any gain or loss that may be recognized with respect to contracts subject to Section 1256 of the Code, (B) any gain that may be recognized on the transfer of stock in a “passive foreign investment company” as defined in Section 1297(a) of the Code and (C) any other gain or loss that may be required to be recognized as a result of the closing of the Acquired Fund’s taxable year or upon the transfer of an Asset regardless of whether such transfer would otherwise be a non-taxable transaction under the Code; (vi) no gain or loss will be recognized by the Acquired Fund Shareholders of such Acquired Fund upon the exchange of their Acquired Fund Shares solely for the Acquiring Fund Shares of the corresponding Acquiring Fund as part of the Reorganization; (vii) the aggregate basis of the Acquiring Fund Shares that each Acquired Fund Shareholder of the applicable Acquired Fund receives in connection with the transaction will be the same as the aggregate basis of his or her Acquired Fund Shares exchanged therefor; and (viii) an Acquired Fund Shareholder’s holding period for his or her Acquiring Fund Shares will include the period for which he or she held the Acquired Fund Shares exchanged therefor, provided that he or she held such Acquired Fund Shares as capital assets on the date of the exchange. The delivery of such opinion is conditioned upon the receipt by Bingham McCutchen LLP of representations it shall request of the Acquiring Entity and the Acquired Entity. Notwithstanding anything herein to the contrary, neither the Acquiring Entity nor the Acquired Entity may waive the condition set forth in this paragraph 8.5.

     [8.5 The Acquiring Entity, on behalf of each Acquiring Fund, shall have received on the applicable Closing Date an opinion of Venable LLP, in a form reasonably satisfactory to the Acquiring Entity, and dated as of the Closing Date, substantially to the effect that, based upon certain facts and certifications made by the Acquired Entity, on behalf of the Acquired Fund, and its authorized officers: (a) the Acquired Entity is a corporation organized under the laws of the State of Maryland; (b) the Acquired Entity, with respect to the corresponding Acquired Fund, has the power as a corporation to carry on its business as presently conducted in accordance with the description thereof in the Acquired Entity’s registration statement as an open-end investment company registered under the 1940 Act; (c) this Agreement has been duly authorized, executed and delivered by the Acquired Entity, on behalf of the corresponding Acquired Fund, and constitutes a valid and legally binding obligation of the Acquired Entity, on behalf of the corresponding Acquired Fund, enforceable against the Acquired Entity in accordance with its terms; and (d) the execution and delivery of this Agreement did not, and the transfer of the Assets for Acquiring Fund Shares and the assumption by the Acquiring Fund of the Liabilities pursuant to this Agreement will not, violate the Acquired Entity Charter or the by-laws of the Acquired Entity. Such opinion may state that it is solely for the benefit of the Acquiring Entity and the Acquiring Entity Board. Such opinion may contain such assumptions and limitations as shall be in the opinion of Venable LLP appropriate to render the opinions expressed therein.]

     [8.5 The Acquiring Entity, on behalf of each Acquiring Fund, shall have received on the applicable Closing Date an opinion of Bingham McCutchen LLP, in a form reasonably satisfactory to the Acquiring Entity, and dated as of the Closing Date, substantially to the effect that, based upon certain facts and certifications made by the Acquired Entity, on behalf of the Acquired Fund, and its authorized officers: (a) the Acquired Entity is a statutory trust existing under the laws of the State of Delaware; (b) the Acquired Entity, with respect to the corresponding Acquired Fund, has the power as a statutory trust to carry on its business as presently conducted in accordance with the description thereof in the Acquired Entity’s registration statement as an open-end investment company registered under the 1940 Act; (c) this Agreement has been duly authorized, executed and, so far as know to such counsel, delivered by the Acquired Entity, on behalf of the corresponding Acquired Fund, and constitutes a valid and legally binding obligation of the Acquired Entity, on behalf of the corresponding

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Acquired Fund, enforceable against the Acquired Entity in accordance with its terms; and (d) the execution and delivery of this Agreement did not, and the transfer of the Assets for Acquiring Fund Shares and the assumption by the Acquiring Fund of the Liabilities pursuant to this Agreement will not, violate the Acquired Entity Charter or the by-laws of the Acquired Entity. Such opinion may state that it is solely for the benefit of the Acquiring Entity and the Acquiring Entity Board. Such opinion may contain such assumptions and limitations as shall be in the opinion of Bingham McCutchen LLP appropriate to render the opinions expressed therein.]

     8.6 The Acquired Entity, on behalf of each Acquired Fund, shall have received on the applicable Closing Date an opinion of Bingham McCutchen LLP, in a form reasonably satisfactory to the Acquired Entity, and dated as of the Closing Date, substantially to the effect that, based upon certain facts and certifications made by the Acquiring Entity, on behalf of the corresponding Acquiring Fund and its authorized officers: (a) the Acquiring Entity is a statutory trust validly existing under the laws of the State of Delaware; (b) the Acquiring Entity, with respect to the corresponding Acquiring Fund, has the power as a statutory trust to carry on its business as presently conducted in accordance with the description thereof in the Acquiring Entity’s registration statement as an open-end investment company registered under the 1940 Act; (c) this Agreement has been duly authorized, executed and, so far as know to such counsel, delivered by the Acquiring Entity, on behalf of the corresponding Acquiring Fund, and constitutes a valid and legally binding obligation of the Acquiring Entity, on behalf of the corresponding Acquiring Fund, enforceable against the Acquiring Entity in accordance with its terms; and (d) the execution and delivery of this Agreement did not, and the issuance of the Acquiring Fund Shares and the assumption of the Liabilities in exchange for the transfer of the Assets pursuant to this Agreement will not, violate the Acquiring Entity Charter or the by-laws of the Acquiring Entity. Such opinion may state that it is solely for the benefit of the Acquired Entity and the Acquired Entity Board. Such opinion may contain such assumptions and limitations as shall be in the opinion of Bingham McCutchen LLP appropriate to render the opinions expressed therein.

9. INDEMNIFICATION

     9.1 The Acquiring Entity, out of each Acquiring Fund’s assets and property (including any amounts paid to the Acquiring Fund pursuant to any applicable liability insurance policies or indemnification agreements), agrees to indemnify and hold harmless the Acquired Entity and the members of the Acquired Entity Board and its officers from and against any and all losses, claims, damages, liabilities or expenses (including, without limitation, the payment of reasonable legal fees and reasonable costs of investigation) to which the Acquired Entity and those board members and officers may become subject, insofar as such loss, claim, damage, liability or expense (or actions with respect thereto) arises out of or is based on (a) any breach by the Acquiring Entity, on behalf of an Acquiring Fund, of any of its representations, warranties, covenants or agreements set forth in this Agreement or (b) any act, error, omission, neglect, misstatement, materially misleading statement, breach of duty or other act wrongfully done or attempted to be committed by the Acquiring Entity or the members of the Acquiring Entity Board or its officers prior to the Closing Date, provided that such indemnification by the Acquiring Entity is not (i) in violation of any applicable law or (ii) otherwise prohibited as a result of any applicable order or decree issued by any governing regulatory authority or court of competent jurisdiction.

     9.2 The Acquired Entity, out of each Acquired Fund’s assets and property (including any amounts paid to the Acquired Fund pursuant to any applicable liability insurance policies or indemnification agreements), agrees to indemnify and hold harmless the Acquiring Entity and the members of the Acquiring Entity Board and its officers from and against any and all losses, claims, damages, liabilities or expenses (including, without limitation, the payment of reasonable legal fees and reasonable costs of investigation) to which the Acquiring Entity and those board members and officers may become subject, insofar as such loss, claim, damage, liability or expense (or actions with respect thereto) arises out of or is based on (a) any breach by the Acquired Entity, on behalf of an Acquired Fund, of any of its representations, warranties, covenants or agreements set forth in this Agreement or (b) any act, error, omission, neglect, misstatement, materially misleading statement, breach of duty or other act wrongfully done or attempted to be committed by the Acquired Entity or the members of the Acquired Entity Board or its officers prior to the Closing Date, provided that such indemnification by the

A-14

Acquired Entity is not (i) in violation of any applicable law or (ii) otherwise prohibited as a result of any applicable order or decree issued by any governing regulatory authority or court of competent jurisdiction.

10. BROKER FEES AND EXPENSES

     10.1 The Acquiring Entity, on behalf of each Acquiring Fund, and the Acquired Entity, on behalf of each Acquired Fund, represent and warrant to each other that there are no brokers or finders entitled to receive any payments in connection with the transactions provided for herein.

     10.2 The costs of the Reorganizations will be shared by TAM and the Acquiring Funds and Acquired Funds in accordance with an allocation approved by the Acquired Entity and Acquiring Entity Boards. Notwithstanding any of the foregoing, expenses will in any event be paid by the party directly incurring such expenses (without reimbursement by another person) if and to the extent that the payment by another person of such expenses would prevent such party from being treated as a “regulated investment company” under the Code or would prevent the Reorganization from qualifying as a tax-free reorganization.

11. ENTIRE AGREEMENT; SURVIVAL OF WARRANTIES

     11.1 The Acquiring Entity and the Acquired Entity agree that neither party has made any representation, warranty or covenant, on behalf of an Acquiring Fund or an Acquired Fund, respectively, not set forth herein and that this Agreement constitutes the entire agreement between the parties.

     11.2 The covenants to be performed after the Closing by both the Acquiring Entity and the Acquired Entity, and the obligations of the Acquiring Entity, on behalf of each Acquiring Fund, in Article 9, shall survive the Closing. All other representations, warranties and covenants contained in this Agreement or in any document delivered pursuant hereto or in connection herewith shall not survive the consummation of the transactions contemplated hereunder and shall terminate on the Closing.

12. TERMINATION

     This Agreement may be terminated and the transactions contemplated hereby may be abandoned with respect to any Acquiring Fund or Acquired Fund at any time prior to the Closing Date with respect to the applicable Reorganization by resolution of either the Acquiring Entity Board or the Acquired Entity Board, if circumstances should develop that, in the opinion of that Board, make proceeding with the Agreement inadvisable with respect to such Acquiring Fund or such Acquired Fund, respectively. Any such termination resolution will be effective when communicated to the other party. The termination of this Agreement with respect to an Acquired Fund or its corresponding Acquiring Fund shall not affect the continued effectiveness of this Agreement with respect to any other Acquired Fund or Acquiring Fund, nor shall it affect the rights and obligations of any party in respect of any breach of this Agreement occurring prior to such termination.

13. AMENDMENTS

     This Agreement may be amended, modified or supplemented in such manner as may be deemed necessary or advisable by the authorized officers of the Acquired Entity and the Acquiring Entity.

14. NOTICES

     Any notice, report, statement or demand required or permitted by any provisions of this Agreement shall be in writing and shall be given by facsimile, electronic delivery (i.e., e-mail), personal service or prepaid or certified mail addressed to the Acquiring Entity or the Acquired Entity, at its address set forth in the preamble to this Agreement, in each case to the attention of its President.

A-15

15. HEADINGS; COUNTERPARTS; GOVERNING LAW; SEVERABILITY; ASSIGNMENT; LIMITATION OF  LIABILITY

     15.1 The Article headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

     15.2 This Agreement may be executed in any number of counterparts, each of which shall be deemed an original.

     15.3 This Agreement shall be governed by and construed and interpreted in accordance with the internal laws of the State of New York.

     15.4 This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and assigns, but no assignment or transfer hereof or of any rights or obligations hereunder shall be made by any party without the written consent of the other parties. Nothing herein expressed or implied is intended or shall be construed to confer upon or give any person, firm or corporation, other than the parties hereto and their respective successors and assigns, any rights or remedies under or by reason of this Agreement.

     15.5 The warranties, representations and agreements contained in this Agreement made by the Acquired Entity, on behalf of each of the Acquired Funds, are made on a several (and not joint, or joint and several) basis. Similarly, the warranties, representations and agreements contained in this Agreement made by the Acquiring Entity, on behalf of each of the Acquiring Funds, are made on a several (and not joint, or joint and several) basis.

[Rest of page intentionally left blank]

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     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its duly authorized officer.

TRANSAMERICA FUNDS, on behalf of each of its series listed in Exhibit A attached hereto

By:

Name:

Title:

[TRANSAMERICA FUNDS/TRANSAMERICA INVESTORS, INC.], on behalf of each of its series listed in Exhibit A attached hereto

By:

Name:

Title:

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Exhibit A

Acquired Fund/Classes	Acquiring Fund/Classes
[Acquired Fund] [Class] [Class]	[Acquiring Fund] [Class] [Class]
[Acquired Fund] [Class] [Class]	[Acquiring Fund] [Class] [Class]
[Acquired Fund] [Class] [Class]	[Acquiring Fund] [Class] [Class]
[Acquired Fund] [Class] [Class]	[Acquiring Fund] [Class] [Class]
[Acquired Fund] [Class] [Class]	[Acquiring Fund] [Class] [Class]

A-18

SCHEDULE 4.1

A-19

SCHEDULE 4.2

A-20

EXHIBIT B
PORTFOLIO MANAGEMENT DISCUSSION

Transamerica Premier Balanced Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008, was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector and a near-freeze in the funding market prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

The poor credit market and economic environment spawned a flight from higher-risk assets such as stocks and corporate bonds to the relative safety of U.S. government-backed securities. Increasing demand for Treasuries drove prices higher and, because they move in opposition, yields lower. As the risk aversion escalated, the difference between Treasury and non-government yields, in some cases, reached record levels.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Balanced Fund, Investor Class returned (33.27)%. By comparison its primary and secondary benchmarks, Standard and Poor’s 500 Composite Stock Index (“S&P 500”) and Barclays Capital (formerly Lehman Brothers) U.S. Government/Credit Bond Index (“BCGC”), returned (37.00)% and 5.70%, respectively.

STRATEGY REVIEW

On the equity side, the portfolio’s underperformance was largely a result of weak returns posted by individual holdings in the information technology (e.g., Apple, Inc.) and consumer discretionary (e.g., Daimler AG) sectors as well as an underweight position in consumer staples, the sector that experienced the smallest decline.

Within technology, strong demand for Apple’s Macs, Nanos and iPhones was undermined by continued rumors of management change. In addition, some investors believe growth in demand for the iPod has reached a plateau. We maintained our position, convinced that Apple will stay on the cutting edge of personal technology devices and continue to gain market share. We also maintained our position in Tyco Electronics, Ltd., a maker of connectors for the auto, aerospace and telephony industries. We believe the company is growing at a healthy rate for a quasi-industrial company. Daimler suffered during the year due primarily to the downward trend in auto sales worldwide and the lack of financing available to consumers.

Helping to offset some of the underperformance was WW Grainger, Inc., a distributor of industrial maintenance and repair supplies. It benefited from a number of new improvement projects and expansion into new markets.

B-1

On the fixed-income side, a shorter-than-index duration as well as an overweighting of non-government sectors (i.e., investment-grade corporate securities and agency mortgage securities), which lagged the Treasury sector, was the primary source of underperformance. Among investment-grade corporate bonds, we had no exposure to the most distressed companies in the troubled financial services sector. On the mortgage side, our emphasis was on short-duration agency collateralized mortgage obligations, which were less volatile than other mortgage securities. As the credit crisis expanded to other parts of the market and world, we pared back our exposure to corporates.

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Edward S. Han
John J. Huber, CFA
Peter O. Lopez
Erik U. Rollé
Greg D. Haendel, CFA
Derek S. Brown, CFA
Brian W. Westhoff, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

B-2

Transamerica Value Balanced
(unaudited)

MARKET ENVIRONMENT

US securities markets faced many challenges in the twelve months ended October 31, 2008, ultimately delivering strongly negative returns across the board. The Russell 1000^® Value Index (“Russell 1000 Value”) declined 36.80% and the Barclays Capital (formerly Lehman Brothers) US Aggregate Bond Index (“BCAB”) slightly increased 0.30%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. The higher borrowing costs made it more difficult for companies to fund payroll, inventory and other near-term expenses. Consumers, already feeling the effects of higher energy and food prices, rising unemployment and lack of wage growth, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the US government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown increased.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Value Balanced Class A returned (32.94)%. By comparison, its primary and secondary benchmarks, the Russell 1000 Value and the BCAB, returned (36.80)% and 0.30%, respectively.

STRATEGY REVIEW

The portfolio underperformed the blended benchmark, reflecting an overweighting in equities, which underperformed bonds, and underperformance of the equity and bond portfolios as compared to their respective benchmarks.

On the equity side, we attribute underperformance to overweighting energy and shipping-related stocks. As the period progressed, investors shunned these stocks over concerns that the global supply-demand ratios driving their growth will deteriorate as economic growth abates worldwide. The largest individual detractors from relative performance included Aegean Marine Petroleum Network Inc. and McDermott International, Inc., an oil services company. The negative impact of these was partially offset by another energy stock, Fording Canadian Coal Trust, and by gains from software giant Microsoft Corporation early in the period. Management of the portfolio was transferred to a new team at Transamerica Investment Management as of October 1, 2008. The new team began repositioning the portfolio to be more diversified by sector and industry while keeping it relatively concentrated in 35 — 45 names. In selecting stocks to replace the energy, shipping and other stocks vulnerable to the slowing global economy, we focused on companies that derive more of their revenues from US sources.

We believe that since the US was first to take action to stave off recession, it also will emerge from the economic downturn before others do.

In the bond portfolio, an overweighting of non-government sectors (i.e., investment-grade corporate securities and agency mortgage securities), which lagged the Treasury sector, was the primary source of underperformance. The negative effect of these overweightings was partially mitigated by our individual security selection. Among investment-grade corporate bonds, we had no exposure to the most distressed companies in the troubled financial services sector. Our mortgage exposure emphasized short-duration agency collateralized mortgage obligations, which were less volatile than other mortgage securities.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector should provide some much-needed rationality in the markets. We believe it

B-3

should help to rebuild trust and reduce the severity of the recession. In the interim, we believe high levels of market volatility will likely persist.

Greg D. Haendel, CFA
Geoffrey I. Edelstein, CFA, CIC
Derek S. Brown, CFA
Scott L. Dinsdale, CFA
Kirk R. Feldhus
Brian W. Westhoff, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

Prior to October 1, 2008, Heidi Y. Hu and Michelle E. Stevens were co-portfolio managers to this fund.

B-4

Transamerica Balanced
(unaudited)

MARKET ENVIRONMENT

Faced with many challenges in the twelve months ended October 31, 2008, US equity indices delivered double-digit negative returns across the board. Stocks underperformed bonds, as the Standard and Poor’s 500 Composite Stock Index (“S&P 500”) declined 36.10% and the Barclays Capital (formerly Lehman Brothers) US Government/Credit Bond Index (“BCGC”) fell 1.06%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. The higher borrowing costs made it more difficult for companies to fund payroll, inventory and other near-term expenses. Consumers, who already were feeling the effects of higher energy and food prices and rising unemployment, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the US government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown increased.

A 60% equity/40% bond blend of the above mentioned indices declined 23.39% during the period.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Balanced Class A returned (33.55)%. By comparison, its primary and secondary benchmarks, the S&P 500 and the BCGC, returned (36.10)% and (1.06)%, respectively.

STRATEGY REVIEW

Transamerica Balanced’s twelve-month return reflects an overweighting in equities, which underperformed bonds, and underperformance of the equity and bond portfolios as compared to their respective benchmarks.

On the equity side, the key factors in the lagging returns were our underweighting in the top-performing consumer staples sector and poor results for some of our automotive/transportation holdings (e.g., Daimler AG (“Daimler”)). Daimler suffered during the year due primarily to the downward trend in automotive sales worldwide and the lack of financing available to consumers. Partially offsetting these declines were our selections in the healthcare (e.g., Gilead Sciences, Inc. (“Gilead”)) and producer durables (e.g., W.W. Grainger, Inc. (“Grainger”)) sectors. Gilead, a biopharmaceutical company working on treatments for cures to life-threatening diseases, has benefited from competitors being merged, which reduced its competition. Grainger, a building maintenance supply company, has implemented improvement projects within its businesses. This company-specific catalyst enabled Grainger to take market share from competitors, partially offsetting the effects of a weaker economy. The portfolio also benefited from our underweighting the financials sector.

In the bond portfolio, an overweighting of non-government sectors (i.e., investment-grade corporate securities and agency mortgage securities), which lagged the Treasury sector, was the primary source of underperformance. The negative effect of these overweightings was partially mitigated by our individual security selection. Among investment-grade corporate bonds, we had no exposure to the most distressed companies in the troubled financial services sector. On the mortgage side, our emphasis was on short-duration agency collateralized mortgage obligations, which were less volatile than other mortgage securities.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector, the biggest government intervention in the financial system since the 1930s, should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and reduce the severity of the recession. The equity portfolio is populated with securities of companies that, in our opinion, have capable management teams, strong balance sheets and highly competitive positions, and that stand to benefit from long-term secular trends. We believe these traits will allow the companies to

B-5

weather a recession better than most and emerge as stronger competitors on the other side. On the bond side, we are maintaining a relatively cautious stance, with a shorter-than-index duration and a focus on quality.

Gary U. Rollé, CFA
Greg D. Haendel, CFA
Derek S. Brown, CFA
Geoffrey I. Edelstein, CFA, CIC
Edward S. Han
John J. Huber, CFA
Peter O. Lopez
Erik U. Rollé
Brian W. Westhoff, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

Prior to October 1, 2008, Heidi Y. Hu, CFA was also a co-portfolio manager.

B-6

Transamerica Premier Diversified Equity Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Diversified Equity Fund, Investor Class returned (40.93)%. By comparison its benchmark, the Standard and Poor’s 500 Composite Stock Index, returned (37.00)%.

STRATEGY REVIEW

The portfolio’s underperformance was largely a result of weak returns posted by individual holdings in the information technology and consumer discretionary sectors. Also pressuring relative performance were the portfolio’s underweight positions in better-performing sectors like health care and consumer staples.

Within technology, strong demand for Apple, Inc.’s Macs, Nanos and iPhones was undermined by continued rumors of management change. In addition, some investors believe growth in demand for the iPod has reached a plateau. We maintained our position, convinced that Apple will stay on the cutting edge of personal technology devices and continue to gain market share.

Another significant detractor from relative performance was CME Group, Inc., an electronic derivatives exchange. Although CME is the leader in this segment, a slowdown in the company’s monthly trading volumes compared to rapid volume growth in 2007 caused the stock to sell off. We believe CME will continue to gain market share with development of several new exchange traded products and maintained our position.

On the upside, the portfolio’s relative results benefited from stock selection in the financials (e.g., Plum Creek Timber, Co., Inc.) and materials (e.g., Sigma-Aldrich Corp.) sectors. Plum Creek, a real estate investment trust (“REIT”), owns and manages timberlands in the U.S and benefited from its status as the largest private landholder in the U.S. The company plans to sell much of its higher-quality, higher-priced acreage for conservation, residential and recreational uses.

Although Sigma is technically a chemicals company, it serves the healthcare industry by providing chemical products and kits used in scientific, genomic, pharmaceutical and biotech research. We believe a stable business model, expanding margins and strong cash flow bode well for this company.

B-7

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Kirk R. Feldhus
Thomas E. Larkin, III
John D. Lawrence, CFA
Peter O. Lopez

Co-Portfolio Managers
Transamerica Investment Management, LLC

B-8

Transamerica Premier Institutional Diversified Equity Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Institutional Diversified Equity Fund, Institutional Class returned (40.98)%. By comparison its benchmark, the Standard and Poor’s 500 Composite Stock Index, returned (37.00)%.

STRATEGY REVIEW

The portfolio’s underperformance was largely a result of weak returns posted by individual holdings in the information technology (e.g., Apple, Inc. and Tyco Electronics, Ltd.) and consumer discretionary (e.g. BorgWarner, Inc.) sectors. Also pressuring relative performance were the portfolio’s underweight positions in better-performing sectors like health care and consumer staples. Apple was undermined by continued rumors of management change. In addition, some investors believe growth in demand for the iPod has reached a plateau. We maintained our position, convinced that Apple will stay on the cutting edge of personal technology devices and we believe will continue to gain market share. Tyco, a maker of connectors for the auto, aerospace and telephony industries, has seen its stock price decline primarily due to its association with the auto industry. We believe that the company is growing at a healthy rate for a quasi-industrial company and have maintained our position.

On the upside, the portfolio’s relative results benefited from stock selection in the financials (e.g., Plum Creek Timber, Co., Inc.) and materials (e.g., Sigma-Aldrich Corp.) sectors. Plum Creek, a real estate investment trust (“REIT”), owns and manages timberlands in the U.S and benefited from its status as the largest private landholder in the U.S. The company plans to sell much of its higher-quality, higher-priced acreage for conservation, residential and recreational uses. Another positive for the stock: President-elect Obama introduced the largest public works spending program since the interstate highway system.

Although Sigma is technically a chemicals company, it serves the healthcare industry by providing chemical products and kits used in scientific, genomic, pharmaceutical and biotech research. We believe a stable business model, expanding margins and strong cash flow bode well for this company.

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Kirk R. Fedlhus
Thomas E. Larkin, III

B-9

John D. Lawrence, CFA
Peter O. Lopez

Co-Portfolio Managers
Transamerica Investment Management, LLC

B-10

Transamerica Science & Technology
(unaudited)

MARKET ENVIRONMENT

Faced with many challenges in the twelve months ended October 31, 2008, US equity indices delivered double-digit negative returns across the board. The Dow Jones US Technology Index (“DJ Technology”) declined 40.90%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. This made it more difficult for companies to fund payroll, inventory and other near-term expenses in the face of high borrowing costs. Consumers, who already were feeling the effects of higher energy and food prices and lack of wage growth, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the US government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown rose.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Science & Technology Class A returned (48.18)%. By comparison, its benchmark, the DJ Technology, returned (40.90)%.

STRATEGY REVIEW

We position the portfolio to benefit from at least one of several long-term secular trends that we believe can be the source of strong growth for a company. Among these are the digitization of media for mass consumer adoption, and development and delivery of alternative energy and other environmental sustainability projects. Other trends underlying our stock selections are the unique application of technology to gain a competitive edge and the development of biotechnology products and treatments that improve the quality and efficacy of health care.

Despite our focus on these secular growth trends, the stocks in the portfolio were generally unable to withstand the broad-scale sell-off of technology stocks that occurred during the period. Driving that sell-off were hedge funds and other major holders of technology stocks that were forced to sell securities in order to raise capital.

The largest detractors from performance were technology sector holdings (e.g., SiRF Technology Holdings, Inc. (“SiRF”) and SunPower Corporation (“SunPower”)). We sold SiRF, a maker of global positioning systems (“GPS”) semiconductor chips, when it became apparent that the commoditization of GPS chips was occurring more rapidly than we anticipated. SunPower is a manufacturer and installer of solar power technologies. Its stock price fluctuated widely during the period as sales were affected by customers’ difficulty in obtaining financing and investors worried about the future of government subsidies for alternative energy. We maintained the position, in the belief that there will be aggressive pursuit of alternative energy technologies in the coming years.

These declines were partially offset by our overweighting and stock selection in the health care sector (e.g., NuVasive, Inc. (“NuVasive”) and Gilead Sciences, Inc. (“Gilead”)). NuVasive, a medical device company, is benefiting from advancements in spinal surgery techniques. Further, its business is relatively immune from cyclical economic trends. Gilead, a biopharmaceutical company working on treatments for cures to life-threatening diseases, has benefited from competitors’ mergers, which reduced its competition.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector, the biggest government intervention in the financial system since the 1930s, should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and reduce the severity of the recession. In the interim, high levels of market volatility likely will persist.

Kirk J. Kim

B-11

Joshua D. Shaskan, CFA
Jeffrey J. Hoo, CFA
Erik U. Rollé

Co-Portfolio Managers
Transamerica Investment Management, LLC

Prior to March 1, 2008, Gary V. Rollé, CFA was also a co-portfolio manager.

B-12

Transamerica Templeton Global
(unaudited)

MARKET ENVIRONMENT

Transamerica Investment Management, LLC:

Faced with many challenges in the twelve months ended October 31, 2008, US equity indices delivered double-digit negative returns across the board. The Russell 1000^® Growth Index declined 36.95%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. This made it more difficult for companies to fund payroll, inventory and other near-term expenses in the face of high borrowing costs. Consumers, who already were feeling the effects of high energy prices, increasing food costs, rising unemployment and lack of wage growth, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the US government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown rose.

Templeton Investment Counsel, LLC:

During the twelve months ended October 31, 2008, US gross domestic product (“GDP”) growth slowed markedly as housing prices declined, consumer demand softened, and a credit crisis originally related to US sub-prime loan losses intensified and spread globally. Recessionary fears spanned the entire period, and by summer most economists agreed a recession was under way, and a global slowdown surfaced.

Strong global demand triggered a commodity price boom, which added to global inflationary pressures. Seeking to reignite the US economy, the Fed lowered rates to 1.00% from 4.50%. The eurozone focused on controlling inflation and kept rates steady at 4.00% until July when the European Central Bank (“ECB”) joined many of the world’s central banks and raised rates. The potential for global recession, however, exacerbated by the virtual freeze in the global financial system in September and October, trumped inflationary concerns, and the world’s monetary authorities cut interest rates aggressively. The US dollar, which had previously declined versus many of the world’s currencies, regained ground quickly toward period-end, and the dollar posted twelve-month gains relative to most currencies.

Against this challenging economic backdrop, many global equity markets were volatile, and virtually all local indices suffered losses for the twelve-month period. Despite negative economic data and an outlook for decelerating corporate earnings and profit margins globally, many companies’ balance sheets, primarily outside the financial sector, remained relatively strong.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Templeton Global Class A returned (44.68)%. By comparison, its benchmark, the Morgan Stanley Capital International World Index (“MSCIW”), returned (41.51)%.

STRATEGY REVIEW

Transamerica Investment Management LLC:

The portfolio lagged the index due primarily to poor results for our holdings within the automotive/transportation (e.g., Daimler AG (“Daimler”)), technology (e.g., Research In Motion Limited (“RIMM”)), and consumer discretionary (e.g., MGM Mirage (“MGM”)) sectors. Daimler suffered during the year as a result of the downward trend in automotive sales worldwide, a trend that was heightened by consumers’ difficulty in obtaining financing. We believe RIMM’s performance can be attributed to the concerns of slowing consumer spending rather than to any deterioration in company fundamentals. We sold our position in MGM in early 2008, based on our belief that discretionary spending on travel and entertainment would slow.

B-13

Partially offsetting these declines were our selections in materials/processing (e.g., Praxair, Inc. (“Praxair”)) and healthcare (e.g., Gilead Sciences, Inc. (“Gilead”)) and our cash position. Praxair, a producer and distributor of industrial gases, held up relatively well because its stable business model emphasizes long-term contracts. We believe this will help the company maintain its already strong market share. Gilead, a biopharmaceutical company working on treatments for cures to life-threatening diseases, has benefited from competitors’ mergers, which reduced its competition. Our goal is to be fully invested at all times, and cash has historically averaged less than 5% of portfolio assets. However, as market conditions worsened, we let our cash position build slightly so that we could redeploy the assets in attractive new opportunities as they arose.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector, the biggest government intervention in the financial system since the 1930s, should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and serve to shorten or at least reduce the severity of the recession. In the interim, high levels of market volatility likely will persist.

Templeton Investment Counsel, LLC:

Overall, investments in every country represented in the portfolio, with the exception of Mexico (not an index component), fell in value during the year under review, as did every country represented in the index. Geographically, the portfolio’s Asian and Latin American equities hindered performance in absolute terms and relative to the benchmark for the reporting period. Stock selection in Japan hurt relative performance, as did the portfolio’s holdings in Brazil (not an index component). In Europe, overweightings and stock selection in Norway and the Netherlands, and our underweighting and stock selection in Switzerland, also hindered relative performance.

During this difficult year for equities, every sector experienced declines in value. Utilities were a major detractor from performance relative to the benchmark, due to our underweighting and stock selection. Among utilities, E.ON AG (Germany) and Korea Electric Power Corporation (South Korea) posted steep share price declines.

The financials sector suffered heavy losses and hurt portfolio performance on an absolute basis. Key underperformers included Japanese lender Aiful Corporation, Netherlands-based ING Groep N.V., and French insurer AXA. Underweighting in consumer staples and stock selection in the consumer discretionary sector weighed on absolute and relative performance, particularly, automotive manufacturer Bayerische Motoren Werke AG (“BMW”) (Germany) and food and staples retailer The Jean Coutu Group (PJC) Inc. (Canada).

Geographically, our North American equities benefited the portfolio’s performance in relative terms, largely due to stock selection. Our overweighted allocation to the Middle East and Africa (composed solely of investments in non-index South Africa and Israel) also helped relative results. By country, stock selection in France and the United Kingdom (“UK”) contributed to relative performance, aided by an underweighted position in Australia. Stock selection and an underweighting in Ireland also aided relative results.

In regard to sectors, industries and individual securities, the portfolio showed strength relative to the benchmark in several areas. Although financials stocks hurt the portfolio in absolute terms, our underweighting versus the benchmark was beneficial in relative terms. Based on stock selection, ACE Limited, Munich RE AG, HSBC Holdings plc and Promise Co., Ltd. performed well on a relative basis. The materials sector was another major positive contributor to performance relative to the benchmark, due to our underweighted allocation and stock selection. Our underweighted position in metals and mining companies aided relative results, as most share prices fell precipitously in the latter half of the fiscal year when related commodity prices plummeted. Driven by stock selection, the energy sector also helped relative performance for the period. Top contributors included UK-based oil and gas conglomerate BP plc. and Italy’s Eni SpA.

Our overweighted position in the health care sector also lifted the portfolio’s relative returns, aided by holdings in pharmaceutical manufacturers such as Swiss firm Novartis AG (not an index component), French company Sanofi-Aventis and UK giant GlaxoSmithKline plc, which each declined less than the overall index.

The US dollar appreciated versus most foreign currencies for the period, which negatively affected the portfolio’s performance because investments in securities with non-US currency exposure lost value as the dollar strengthened.

B-14

Gary U. Rollé, CFA

Portfolio Manager
Transamerica Investment Management, LLC

Tina Sadler, CFA
Antonio T. Docal, CFA
Gary Motyl, CFA

Co-Portfolio Managers
Templeton Investment Counsel, LLC

B-15

Transamerica Premier Equity Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Equity Fund, Investor Class returned (44.74)%. By comparison its primary and secondary benchmarks, the Russell 1000^® Growth Index and the Standard and Poor’s 500 Composite Stock Index, returned (38.44)% and (37.00)%, respectively.

STRATEGY REVIEW

The portfolio’s underperformance was largely a result of weak returns posted by individual holdings in the information technology and consumer discretionary sectors. Also pressuring relative performance were the portfolio’s underweight position in the consumer staples sector and an overweight position in the financials sector.

Within technology, strong demand for Apple, Inc.’s Macs, Nanos and iPhones was undermined by continued rumors of management change. In addition, some investors believe growth in demand for the iPod has reached a plateau. We maintained our position, convinced that Apple will stay on the cutting edge of personal technology devices and continue to gain market share. We were not as optimistic about Research In Motion, Ltd., one of the largest detractors from relative performance. This maker of the BlackBerry wireless platform has fallen behind in its technology for phones, prompting us to liquidate our position.

Another significant detractor from relative performance was CME Group, Inc., an electronic derivatives exchange. Although CME is the leader in this segment, a slowdown in the company’s monthly trading volumes compared to rapid volume growth in 2007 caused the stock to sell off. We believe CME will continue to gain market share with development of several new exchange traded products and maintained our position.

On the upside, the portfolio’s relative results benefited from an underweight position versus the index in the poorly performing energy sector and strong individual stock selection within the healthcare and materials sectors (e.g., Gilead Sciences, Inc. and Praxair, Inc.). A biotech company that develops therapeutic treatments for infectious, life-threatening diseases such as HIV, Gilead proved resilient to the economic downturn. Generally speaking, Gilead’s products are not price sensitive, patent dependent or threatened by competition. We believe we will see continued strength in the stock. Praxair is a worldwide producer and distributor of industrial gases. The inherent defensiveness of the industrial gases sector, as well as a backlog of new projects that has virtually locked in sales and earnings growth through 2010, provided stability for Praxair during the period.

B-16

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Edward S. Han
John J. Huber, CFA
Peter O. Lopez
Erik U. Rollé

Co-Portfolio Managers
Transamerica Investment Management, LLC

B-17

Transamerica Premier Institutional Equity Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Institutional Equity Fund, Institutional Class returned (43.92)%. By comparison its primary and secondary benchmarks, the Russell 1000^® Growth Index and the Standard and Poor’s 500 Composite Stock Index, returned (38.44)% and (37.00)%, respectively.

STRATEGY REVIEW

The portfolio’s underperformance was largely a result of weak returns posted by individual holdings in the information technology and consumer discretionary sectors. Also pressuring relative performance were the portfolio’s underweight position in the consumer staples sector and an overweight position in the financials sector.

Within technology, strong demand for Apple, Inc.’s Macs, Nanos and iPhones was undermined by continued rumors of management change. In addition, some investors believe growth in demand for the iPod has reached a plateau. We maintained our position, convinced that Apple will stay on the cutting edge of personal technology devices and we believe will continue to gain market share. We were not as optimistic about Research in Motion, Ltd., one of the largest detractors from relative performance. This maker of the BlackBerry wireless platform has fallen behind in its technology for phones, prompting us to liquidate our position.

Another significant detractor from relative performance was CME Group, Inc., an electronic derivatives exchange. Although CME is the leader in this segment, a slowdown in the company’s monthly trading volumes compared to rapid volume growth in 2007 caused the stock to sell off. We believe CME will continue to gain market share with development of several new exchange traded products and maintained our position.

On the upside, the portfolio’s relative results benefited from an underweight position versus the index in the poorly performing energy sector and strong individual stock selection within the healthcare and materials sectors (e.g., Gilead Sciences, Inc. and Praxair, Inc.). A biotech company that develops therapeutic treatments for infectious, life-threatening diseases such as HIV, Gilead proved resilient to the economic downturn. Generally speaking, Gilead’s products are not price sensitive, patent dependent or threatened by competition. We believe we will see continued strength in the stock. Praxair is a worldwide producer and distributor of industrial gases. The inherent defensiveness of the industrial gases sector, as well as a backlog of new projects that has virtually locked in sales and earnings growth through 2010, provided stability for Praxair during the period.

B-18

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Edward S. Han
John J. Huber, CFA
Peter O. Lopez
Erik U. Rollé

Co-Portfolio Managers
Transamerica Investment Management, LLC

B-19

Transamerica Equity
(unaudited)

MARKET ENVIRONMENT

Faced with many challenges in the twelve months ended October 31, 2008, US equity indices delivered double-digit negative returns across the board. The Russell 1000^® Growth Index (“Russell 1000 Growth”) declined 36.95%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. This made it more difficult for companies to fund payroll, inventory and other near-term expenses in the face of high borrowing costs. Consumers, who already were feeling the effects of high energy prices, increasing food costs, rising unemployment and lack of wage growth, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the US government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown rose.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Equity Class A returned (43.25)%. By comparison, its benchmark, the Russell 1000 Growth, returned (36.95)%.

STRATEGY REVIEW

The Fund lagged the index due primarily to poor results from our holdings within the automotive/transportation (e.g., Daimler AG (“Daimler”)), technology (e.g., Research in Motion Limited (“RIMM”)), and consumer discretionary (e.g., MGM Mirage (“MGM”)) sectors. Daimler suffered during the year as a result of the downward trend in automotive sales worldwide, a trend that was heightened by consumers’ difficulty in obtaining automotive loans. We believe RIMM’s performance can be attributed to the concerns of slowing consumer spending rather than to any deterioration in company fundamentals. We sold our position in MGM in early 2008, based on our belief that discretionary spending on travel and entertainment would slow.

Partially offsetting these declines were our selections in materials/processing (e.g., Praxair, Inc. (“Praxair”)) and healthcare (e.g., Gilead Sciences, Inc. (“Gilead”)) and our cash position. Praxair, a producer and distributor of industrial gases, held up relatively well because its stable business model emphasizes long-term contracts. We believe this will help the company maintain its already strong market share. Gilead, a biopharmaceutical company working on treatments for cures to life-threatening diseases, has benefited from competitors’ mergers, which reduced its competition. Our goal is to be fully invested at all times, and cash has historically averaged less than 5% of portfolio assets. However, as market conditions worsened, we let our cash position build slightly so that we could redeploy the assets in attractive new opportunities as they arose.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector, the biggest government intervention in the financial system since the 1930s, should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and serve to shorten or at least reduce the severity of the recession. In the interim, high levels of market volatility likely will persist. The portfolio is populated with stocks of companies that, in our opinion, have capable management teams, strong balance sheets and highly competitive positions, and we believe stand to benefit from long-term secular trends.

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Edward S. Han
John J. Huber, CFA
Peter O. Lopez

B-20

Eric U. Rollé

Co-Portfolio Managers
Transamerica Investment Management, LLC

B-21

Transamerica Premier Focus Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Focus Fund, Investor Class returned (41.19)%. By comparison its benchmark, the Standard and Poor’s 500 Composite Stock Index, returned (37.00)%.

STRATEGY REVIEW

The portfolio’s underperformance was largely a result of losses for individual holdings in the information technology and health care sectors (e.g., Apple, Inc. and Nvidia, Inc.). An underweight position in consumer staples also held back relative results.

Although sales for Apple, Inc.’s marquee products during the period remained strong, the effects were negated by speculation of a change in management. We believe Apple will continue to capture market share by launching new cutting-edge personal technology devices, and maintained our position in the stock.

Video graphics chipmaker NVIDIA Corp. also traded lower, pressured by declining profits, growing competition and a decline in video game sales. We eliminated the position in the portfolio.

One of the largest individual detractors was Nighthawk Radiology Holdings, a provider of off-hours emergent radiologic interpretations to doctors’ offices and hospitals. The stock declined when the company lost several key contracts to competitors and experienced a change in management. We believe Nighthawk is positioned to benefit from growing demand for telemedicine (the transfer of medical information via telephone, the Internet or other networks for consulting purposes) and maintained our position.

Meanwhile, strong returns delivered by select holdings in the consumer discretionary and industrials sectors (e.g., Strayer Education, Inc., and CH Robinson Worldwide, Inc.) bolstered the portfolio’s relative performance. Also aiding relative results was a relatively high cash position (i.e., 12% average for the year). Strayer is a provider of undergraduate and graduate degree programs in traditional classroom settings, and over the Internet. Despite initial worries about limited access to student loans, investors gained confidence in Strayer upon learning that the majority of its funding comes from government-backed loans. The stock also benefited from strong enrollment growth and a tuition increase. CH Robinson, a freight logistics company, advanced as demand for its transportation services prevailed over shrinking margins resulting from higher fuel costs. In addition, the company continued to take market share from competitors.

B-22

Edward S. Han
Kirk J. Kim
Joshua D. Shaskan, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

B-23

Transamerica Legg Mason Partners All Cap
(unaudited)

MARKET ENVIRONMENT

The stock market experienced rising volatility during the last fiscal year, with this reaching very high levels toward the end of the year. Concerns over the financial conditions within the banking and financial services sectors led to sharp declines in most stock indices. Exacerbating the decline in equity values were the actions of hedge funds which apparently had to liquidate some of their major holdings in the last quarter of fiscal 2008.

Outside of the financial services sector, many companies are in the strongest cash and financial positions in history. There is a long list of publicly traded corporations whose enterprise values are less than equal to 90% of the total value of their common stocks. In other words, many companies have at least a net cash position of 10% of the value of their shares outstanding. Because of this, the market performance of many companies seemed divorced from reality as the fiscal year wore on. Economic uncertainties accounted for some of this but we believe the action of hedge funds was equally or more important. In recent years, hedge funds have made up an increasing percentage of daily trading and often times their focus is short-term in nature. The use of leverage by many hedge funds accentuated their effect on the stock market, especially during the third quarter in 2008.

Our principal response was to do our best to avoid the “problem companies” in fiscal 2008. In the last market cycle (2001-2002), the poster children for bad corporate behavior were Enron Corporation, WorldCom, and Adelphia Communications Corporation. During 2008, The Bear Stearns Companies Inc., American International Group, Inc., Lehman Brothers Holdings Inc., Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”), the latter two Government Sponsored Enterprises all declared bankruptcy or were forced into receivership. We held none of these companies in the portfolio during the periods leading up to their bankruptcies.

With the stock market focusing on the credit and liquidity problems in the banking sector, we focused on those companies whose balance sheets were strong and whose longer term business prospects were sound, in our opinion. Although we are an all-cap manager, analysis suggested that larger companies represented a very attractive segment of the market on both relative and absolute basis. Larger companies seem as cheap as they have been at any time in the last 25 years. They now make up a larger percentage of our portfolios than at any time in the last 5 years.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Legg Mason Partners All Cap Class A returned (35.81)%. By comparison, its benchmark, the Russell 3000 Index, returned (36.60)%.

STRATEGY REVIEW

For the fiscal year, stock selection in the financials and consumer staples sectors contributed to absolute performance while energy and information technology sectors detracted the most from absolute performance.

The top stock contributors to portfolio performance during the fiscal year were Wal-Mart Stores, Inc. (“Wal-Mart”), The Chubb Corporation (“Chubb”), Visa Inc., Verisign Inc., and AirTran Holdings Inc. The largest detractors from performance were Motorola, Inc.,Vodafone Group Plc — ADS, General Electric Company, Merrill Lynch & Co., Inc., and Samsung Electronics Co., Ltd. GDR (“Samsung”).

John J. Goode
Peter J. Hable

Co-Portfolio Managers
ClearBridge Advisors, LLC

B-24

Transamerica Premier Growth Opportunities Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Growth Opportunities Fund, Investor Class returned (40.85)%. By comparison its primary and secondary benchmarks, the Russell 2500^® Growth Index and the Russell Midcap^® Growth Index, returned (41.50)% and (44.32)%, respectively.

STRATEGY REVIEW

A modest cash position bolstered the portfolio’s relative results, as did an underweight position in the energy sector. Select holdings in the industrials and financials sectors (e.g., CH Robinson Worldwide, Inc. and Signature Bank) also contributed to outperformance.

CH Robinson advanced during the period as demand for its transportation services overcame shrinking margins resulting from higher fuel costs. In addition, the company continued to take market share from competitors. Signature Bank, a full-service commercial bank, took market share and accelerated growth by hiring employees away from two competitors as they merged.

Making the largest individual positive contribution to relative performance was Strayer Education, Inc., a provider of undergraduate and graduate degree programs in traditional classroom settings, as well as over the Internet. Despite initial worries about limited access to student loans, investors gained confidence in Strayer upon learning that the majority of its funding comes from government-backed loans. The stock also benefited from strong enrollment growth and a tuition increase.

An underweight position in the consumer staples sector and weak stock selection within the health care and information technology sectors (e.g., Intuitive Surgical, Inc. and Sirf Technology Holdings, Inc.) detracted from performance. Intuitive develops surgical tools and devices that enable a surgeon’s movements to be more precise. Despite strong financial results and the continued adoption of robotic surgery, investors sold the stock indiscriminately when other high-quality, high-multiple stocks declined. We maintained our position in the stock based on our thesis that the company’s devices enable doctors to be more productive and we believe that demand for its products will therefore remain strong throughout the economic crisis. We liquidated our position in Sirf, a maker of global positioning systems (“GPS”) and chips, midway through the year. Demand for its more-precise technology failed to meet our expectations.

B-25

Edward S. Han
John J. Huber, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

B-26

Transamerica Growth Opportunities
(unaudited)

MARKET ENVIRONMENT

Faced with many challenges in the twelve months ended October 31, 2008, US equity indices delivered double-digit negative returns across the board. The Russell Midcap^® Growth Index (“Russell Midcap Growth”) declined 42.65%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. This made it more difficult for companies to fund payroll, inventory and other near-term expenses in the face of high borrowing costs. Consumers, already feeling the effects of higher energy and food prices, rising unemployment and lack of wage growth, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the U.S. government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown rose.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Growth Opportunities Class A returned (42.37)%. By comparison, its benchmark, the Russell Midcap Growth, returned (42.65)%.

STRATEGY REVIEW

We attribute the outperformance primarily to stock selections in the producer durables (e.g., W.W. Grainger, Inc. (“Grainger”)), automotive/transportation (e.g., C.H. Robinson Worldwide, Inc. (“C.H. Robinson”)) and consumer discretionary (e.g., Strayer Education, Inc. (“Strayer”)) sectors. Grainger, a building maintenance supply company, has implemented improvement projects within its businesses. This company-specific catalyst enabled Grainger to take market share from smaller competitors that lacked financing opportunities. C.H. Robinson, a freight-logistics company, has been investing in the latest shipping technologies and is taking market share from under-financed competitors. Strayer, a leader in undergraduate and graduate degree programs for working adults, continued to achieve consistent growth, aided in part by the fact that, during periods of economic weakness and when jobs are scarcer, people tend to focus on improving their skills.

Because cash outperformed stocks, a modest cash position at certain times also was a net contributor to performance. Our goal is to be fully invested at all times. However, as certain of our long-term investment themes matured amidst the market volatility, we sold holdings and allowed cash to build modestly, biding our time briefly before buying into new opportunities that became available at more attractive prices as the market fell.

The largest detractors from relative performance were holdings in the healthcare (e.g., ArthroCare Corporation (“ArthroCare”)), technology (e.g., SiRF Technology Holdings, Inc. (“SiRF”)) and consumer staples (e.g., Whole Foods Market, Inc. (“Whole Foods”)) sectors. ArthroCare, which develops medical devices for use in soft-tissue surgery, restated company financials. SiRF, a maker of global positioning systems (“GPS”) semiconductor chips, lost ground as it became apparent that the commoditization of GPS chips was occurring more rapidly than we anticipated. Results for Whole Foods, the organic food grocer, weakened as a slowdown in consumer spending spread to luxury items. We sold all three stocks.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and reduce the severity of the recession. In the interim, high levels of market volatility likely will persist.

Edward S. Han
John J. Huber, CFA

B-27

Co-Portfolio Managers
Transamerica Investment Management, LLC

B-28

Transamerica Convertible Securities
(unaudited)

MARKET ENVIRONMENT

Faced with many challenges in the twelve months ended October 31, 2008, US stocks lost ground, and the Standard and Poor’s 500 Composite Stock Index (“S&P 500”) declined 36.10%. Convertibles, which are highly sensitive to equity-market trends, followed stocks lower; the Merrill Lynch All US Convertible Securities Index (“MLCI”) declined 38.49%.

What began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe credit crises. Overnight lending between banks, a vital part of maintaining the flow of capital in the financial system, was disrupted as banks increasingly worried about undisclosed risks from exotic securities. As credit problems multiplied, financial institutions focused on protecting their financial positions and demanded higher yields on corporate debt to compensate for the greater risk associated with the uncertain environment. This made it more difficult and expensive for businesses to issue debt, causing Wall Street’s problems to spill over to Main Street, where businesses were already dealing with the signs of a slowing economy, including falling home prices, rising costs for food and energy, higher unemployment, lack of wage growth and tighter credit conditions. Although the Federal Reserve Board (“Fed”) and the US government intervened on several occasions, taking somewhat unprecedented measures, the credit crisis persisted and the economic outlook continued to dim.

Convertibles generally fare better than stocks during equity bear markets. That was not the case toward the end of the period. To raise cash, large institutional holders of convertibles (e.g., hedge funds) sold convertibles in volume. Additionally, corporate debt yields climbed, reducing the value of convertibles’ debt component.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Convertible Securities Class A returned (38.92)%. By comparison, its benchmark, the MLCI returned (38.49)%.

STRATEGY REVIEW

We seek the convertibles of well-run companies that generate free cash flow and stand to benefit from positive changes in the companies, their industries, or the external forces driving their businesses. These parameters led us to trim back the portfolio’s investments in securities from consumer discretionary companies, many of which were very susceptible to the worsening economy. This benefited the portfolio late in the period, as the poor economic situation became increasingly apparent. Also working to the portfolio’s advantage was an increased focus on securities from companies whose business models allowed them to weather the economic downturn relatively well. Among the portfolio’s large contributors to results was Gilead Sciences, Inc. (“Gilead”), a biopharmaceutical company. Gilead, which develops and markets treatments for diseases such as hepatitis C and HIV, saw steady product demand. Another top-performer was Informatica Corporation, a software company providing enterprise data integration. The company receives recurring cash flows from licensing and maintaining its software programs.

A key detractor was the portfolio’s overweighting in the energy sector. Early in the period, as commodity prices soared, our selections in natural gas producer Chesapeake Energy Corporation and oil services provider Schlumberger Limited (“Schlumberger”) garnered positive returns. When commodity prices later declined, performance in this sector followed suit.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and serve to shorten or at least reduce the severity of the recession. In the interim, market conditions likely will not be favorable. With that in mind, we are seeking securities of non-cyclical businesses that we believe benefit from long-term secular trends and thus can hold their own amidst the turbulence.

Kirk J. Kim

B-29

Peter O. Lopez

Co- Portfolio Managers
Transamerica Investment Management, LLC

B-30

Transamerica Flexible Income
(unaudited)

MARKET ENVIRONMENT

In the twelve months ended October 31, 2008, conditions in the economy and credit markets deteriorated, creating a very unstable environment for bond investors. The Barclays Capital (formerly Lehman Brothers) US Government/Credit Bond Index (“BCGC”) declined 1.06%.

What began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises. Overnight lending between banks, a vital part of maintaining the flow of capital in the financial system, was disrupted as banks increasingly worried about undisclosed risks from exotic securities and the financial strength and stability of other banks. As credit problems multiplied, financial institutions focused on preserving capital and were more selective about lending, making it more difficult for businesses to fund payroll, inventory and other near-term expenses.

The risk aversion eventually spread from Wall Street to Main Street, where it added to growing problems on the economic front. Throughout the period, the housing market continued to deteriorate, while commodity prices were volatile. Rising unemployment, coupled with lack of wage growth and tighter credit conditions, caused consumers to rein in their spending. The reduction in consumer spending, which is the backbone of the US economy, exacerbated problems further.

The Federal Reserve Board (“Fed”) and the US government intervened on several occasions, taking unprecedented measures to curb the crises, improve liquidity, and stimulate the economy. Among the many initiatives were new government-guaranteed loans, larger and more varied lending facilities for banks, and the federal bailout or takeover of major financial institutions. Even with the government’s intervention, the expectations of a global economic slowdown and US recession rose. Nearing the end of the period, investors flocked to the relative safety of US government debt, and Treasury yields declined rapidly. Finally, as concerns about how a slowing economy would affect mortgages and corporate profits, yields on other securities rose, and prices for most non-government securities fell.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Flexible Income Class A returned (16.57)%. By comparison, its benchmark, the BCGC, returned (1.06)%.

STRATEGY REVIEW

Throughout the period, the portfolio generated competitive yields, aided by an overweighting in corporate bonds, an area where yields generally rose. However, as the market tumult came to a head and yield spreads between government and corporate bonds grew, this overweighting hindered performance. Although the overweighting in corporate bonds had a negative impact to performance, our selections within the group helped mitigate losses. We stayed away from the most distressed companies (i.e., Lehman Brothers Holdings Inc. (“Lehman Brothers”), American International Group, Inc. (“AIG”) and Washington Mutual, Inc.) and had no exposure to sub-prime mortgage securities.

Portfolio management responsibilities were transferred to a new team at Transamerica Investment Management, LLC as of October 1, 2008. The new team began repositioning the portfolio while maintaining the portfolio’s mandate of income generation. Our focus became less on corporate issues and more on a diversified pool of fixed-income generating assets, including agency mortgage backed securities (“MBS”). Agency MBS were less volatile than other fixed-income securities because the government, in bailing out the securities’ issuers, had strengthened its guarantee of these securities.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector should provide some much-needed rationality in the markets. We believe it

B-31

should help to rebuild trust among financial institutions and reduce the severity of the recession. In the interim, high levels of market volatility likely will persist.

Derek S. Brown, CFA
Kirk J. Kim
Greg D. Haendel, CFA
Peter O. Lopez
Brian W. Westhoff, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

Prior to October 1, 2008, Heidi Y. Hu, CFA was also a co-portfolio manager.

B-32

The information in this Statement of Additional Information is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This Statement of Additional Information is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

PART B

SUBJECT TO COMPLETION, DATED SEPTEMBER 1, 2009

TRANSAMERICA FUNDS
on behalf of its Series:
TRANSAMERICA BALANCED
TRANSAMERICA DIVERSIFIED EQUITY
TRANSAMERICA EQUITY
TRANSAMERICA LEGG MASON PARTNERS ALL CAP
TRANSAMERICA GROWTH OPPORTUNITIES
TRANSAMERICA FLEXIBLE INCOME
(each, a “Destination Fund” and together, the “Destination Funds”)

570 Carillon Parkway
St. Petersburg, Florida 33716
(Toll free) [1-888-233-4339]

STATEMENT OF ADDITIONAL INFORMATION

[          ], 2009

This Statement of Additional Information (“SAI”) is not a prospectus and should be read in conjunction with the combined Information Statement and Prospectus dated [          ], 2009 (the “Information Statement/Prospectus”), which relates to the Class A, Class B, Class C, Class I and Class P shares, as applicable, of each Destination Fund to be issued in exchange for shares of the corresponding series of Transamerica Funds or Transamerica Investors, Inc. (“Transamerica Premier Funds”) as shown below (each, a “Target Fund” and together, the “Target Funds”). Please retain this SAI for further reference.

To obtain a copy of the Information Statement/Prospectus, free of charge, please write to the Destination Funds at the address set forth above or call the Destination Funds at the number set forth above.

The Reorganizations are grouped and described together for convenience. The consummation of a particular Reorganization is not contingent on the consummation of any other Reorganization.

Reorganization	Target Fund & Shares	Destination Fund & Shares
Group 1	Transamerica Premier Balanced Fund	Transamerica Balanced
	Investor Class	Class P
	Transamerica Value Balanced	Transamerica Balanced
	Class A	Class A
	Class B	Class B
	Class C	Class C

Reorganization	Target Fund & Shares	Destination Fund & Shares
Group 2	Transamerica Premier Diversified Equity Fund	Transamerica Diversified Equity*
	Investor Class	Class P
	Transamerica Premier Institutional Diversified Equity Fund	Transamerica Diversified Equity*
	Institutional Class	Class I
	Transamerica Science & Technology	Transamerica Diversified Equity*
	Class A	Class A
	Class B	Class B
	Class C	Class C
	Class I	Class I
	Transamerica Templeton Global	Transamerica Diversified Equity*
	Class A	Class A
	Class B	Class B
	Class C	Class C
Group 3	Transamerica Premier Equity Fund	Transamerica Equity
	Investor Class	Class P
	Transamerica Premier Institutional Equity Fund	Transamerica Equity
	Institutional Class	Class I
Group 4	Transamerica Premier Focus Fund	Transamerica Legg Mason Partners All Cap**
	Investor Class	Class P
Group 5	Transamerica Premier Growth Opportunities Fund	Transamerica Growth Opportunities
	Investor Class	Class P
Group 6	Transamerica Convertible Securities	Transamerica Flexible Income
	Class A	Class A
	Class B	Class B
	Class C	Class C
	Class I	Class I

*	A newly-organized fund that will have substantially similar investment objectives and principal investment strategies and policies to those of Premier Diversified Equity.
**	The fund’s name, investment objective and principal investment strategies and policies, and sub-adviser are expected to change on or about November 6, 2009. It is expected that the fund will be renamed Transamerica Focus.

TABLE OF CONTENTS

	Page
INTRODUCTION		S-1
DOCUMENTS INCORPORATED BY REFERENCE		S-1
PRO FORMA COMBINED FINANCIAL STATEMENTS		S-1
ADDITIONAL INFORMATION ABOUT CLASS P SHARES		S-32
ADDITIONAL INFORMATION ABOUT TRANSAMERICA DIVERSIFIED EQUITY		S-34
FUND HISTORY		S-34
INVESTMENT OBJECTIVES		S-34
INVESTMENT RESTRICTIONS, POLICIES AND PRACTICES		S-35
OTHER POLICIES AND PRACTICES OF THE FUND		S-36
COMMON STOCKS		S-37
EQUITY EQUIVALENTS		S-37
REPURCHASE AGREEMENTS		S-38
REVERSE REPURCHASE AGREEMENTS AND OTHER BORROWINGS		S-39
WARRANTS AND RIGHTS		S-39
OPTIONS, FUTURES AND OTHER DERIVATIVE INSTRUMENTS		S-40
FOREIGN INVESTMENTS		S-50
SHORT SALES		S-53
OTHER INVESTMENT COMPANIES		S-54
U.S. GOVERNMENT SECURITIES		S-54
MUNICIPAL OBLIGATIONS		S-55
WHEN-ISSUED, DELAYED SETTLEMENT AND FORWARD DELIVERY SECURITIES		S-58
ZERO-COUPON, PAY-IN-KIND AND STEP-COUPON SECURITIES		S-59
INVESTMENTS IN THE REAL ESTATE INDUSTRY AND REAL ESTATE INVESTMENT TRUSTS (“REITS”)		S-60
INCOME-PRODUCING SECURITIES		S-60
HIGH-YIELD/HIGH-RISK BONDS		S-62
LENDING OF FUND SECURITIES		S-63
ILLIQUID AND RESTRICTED/144A SECURITIES		S-63
COMMODITIES AND NATURAL RESOURCES		S-64
TEMPORARY INVESTMENTS		S-65
CERTAIN OTHER SECURITIES IN WHICH THE FUND MAY INVEST		S-65
PORTFOLIO TURNOVER RATE		S-66
DISCLOSURE OF PORTFOLIO HOLDINGS		S-67
INVESTMENT ADVISORY AND OTHER SERVICES		S-68
SUB-ADVISER		S-69
DISTRIBUTOR		S-70
ADMINISTRATIVE SERVICES		S-71
CUSTODIAN, TRANSFER AGENT AND OTHER AFFILIATES		S-71
FUND TRANSACTIONS AND BROKERAGE		S-72
DIRECTED BROKERAGE		S-73
BOARD MEMBERS AND OFFICERS		S-74
SHAREHOLDER COMMUNICATION PROCEDURES WITH BOARD OF TRUSTEES		S-86
DEALER REALLOWANCES		S-87
DISTRIBUTION PLANS		S-88
NET ASSET VALUE DETERMINATION		S-89
DIVIDENDS AND OTHER DISTRIBUTIONS		S-91
SHAREHOLDER ACCOUNTS		S-91
PURCHASE OF SHARES		S-91
RETIREMENT PLANS		S-92
REDEMPTION OF SHARES		S-92

	Page
TAXES		S-93
PRINCIPAL SHAREHOLDERS		S-100
MISCELLANEOUS		S-100
FINANCIAL STATEMENTS		S-102
APPENDIX A		A-1
APPENDIX B		B-1

INTRODUCTION

This SAI is intended to supplement the Information Statement/Prospectus relating specifically to the proposed transfer of all of the assets of each Target Fund to, and the assumption of the liabilities of each Target Fund by, the corresponding Destination Fund in exchange for shares of the Destination Fund as shown in the table above. Please retain this SAI for further reference.

DOCUMENTS INCORPORATED BY REFERENCE

This SAI consists of these cover pages, the accompanying pro forma financial statements and the following documents, each of which was filed electronically with the Securities and Exchange Commission (the “SEC”) and is incorporated by reference herein.

1.	The Destination Funds’ Statement of Additional Information dated July 1, 2009 (File Nos. 811-04556 and 033-02659), as filed with the SEC on July 1, 2009 (Accession No. 0000950123-09-000051) is incorporated herein by reference.
2.	The Destination Funds’ Annual Report for the fiscal year ended October 31, 2008 (File No. 811-04556), as filed with the SEC on January 9, 2009 (Accession No. 0001104659-09-001481) is incorporated herein by reference.
3.	The Destination Funds’ Semi-Annual Report filed the fiscal period ended April 30, 2009 (File No. 811-04556), as filed with the SEC on June 26, 2009 (Accession No. 0001104659-09-040361) is incorporated herein by reference.
4.	For Target Funds that are series of Transamerica Premier Funds, the Target Funds’ Statement of Additional Information dated May 1, 2009 (File Nos. 811-09010 and 033-90888), as filed with the SEC on April 29, 2009 (Accession No. 0000950144-09-003685) is incorporated herein by reference.
5.	For Target Funds that are series of Transamerica Funds, the Target Funds’ Statement of Additional Information dated July 1, 2009 (File Nos. 811-04556 and 033-02659), as filed with the SEC on July 1, 2009 (Accession No. 0000950123-09-000051) is incorporated herein by reference.
6.	For Target Funds that are series of Transamerica Premier Funds, the Target Funds’ Annual Report for the fiscal year ended December 31, 2008 (File No. 811-09010), as filed with the SEC on March 9, 2009 (Accession No. 0001104659-09-015539) is incorporated herein by reference.
7.	For Target Funds’ that are series of Transamerica Funds, the Target Funds’ Annual Report for the fiscal year ended October 31, 2008 (File No. 811-04556), as filed with the SEC on January 9, 2009 (Accession No. 0001104659-09-001481) is incorporated herein by reference.
8.	For Target Funds’ that are series of Transamerica Funds, the Target Funds’ Semi-Annual Report for the fiscal period ended April 30, 2009 (File No. 811-04556), as filed with the SEC on June 26, 2009 (Accession No. 0001104659-09-040361) is incorporated herein by reference.
9.	For Target Funds that are series of Transamerica Premier Funds, the Target Fund’s Semi-Annual Report for the fiscal period ended June 30, 2009 (File No. 811-09010), as filed with the SEC on August 28, 2009 (Accession No. 0001104659-09-052356) is incorporated herein by reference.

PRO FORMA FINANCIAL STATEMENTS

Shown below are the financial statements for each Target Fund and Destination Fund shown in the table above.

The pro forma financial statements are unaudited.

S-1

Group 1 Reorganizations

Reorganizations of Transamerica Premier Balanced Fund, Transamerica Value Balanced and Transamerica Balanced
PRO FORMA SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except per share amounts in thousands)

	Transamerica Premier Balanced
	Fund					Transamerica Value Balanced					Transamerica Balanced					Pro Forma Fund
	Shares		Value			Shares		Value			Shares		Value			Shares		Value
COMMON STOCK (62.1%)
Aerospace & Defense
Boeing Co.		65,000	$	2,603			6,006	$	241			20,000	$	801			91,006	$	3,645
Raytheon Co.		—		—			8,215		372			—		—			8,215		372
Air Freight & Logistics
CH Robinson Worldwide, Inc.		82,000		4,359			—		—			27,000		1,435			109,000		5,794
Expeditors International of Washington, Inc.		20,000		694			—		—			15,000		521			35,000		1,215
United Parcel Service, Inc. -Class B		—		—			3,200		167			—		—			3,200		167
Auto Components
BorgWarner, Inc.		140,000		4,053			18,153		526			50,000		1,448			208,153		6,027
Johnson Controls, Inc.		220,000		4,182			—		—			72,000		1,369			292,000		5,551
Biotechnology
Gilead Sciences, Inc.		130,000		5,954			—		—			40,000		1,832			170,000		7,786
Capital Markets
BlackRock, Inc. -Class A		—		—			1,530		224			—		—			1,530		224
Charles Schwab Corp.		400,000		7,392			—		—			130,000		2,402			530,000		9,794
Eaton Vance Corp.		—		—			6,000		164			—		—			6,000		164
T. Rowe Price Group, Inc.		118,829		4,577			—		—			39,843		1,535			158,672		6,112
Chemicals
Praxair, Inc.		—		—			7,200		537			—		—			7,200		537
Sigma-Aldrich Corp.		150,000		6,576			—		—			50,000		2,192			200,000		8,768
Communications Equipment
Qualcomm, Inc.		155,000		6,560			—		—			50,000		2,116			205,000		8,676
Computers & Peripherals
Apple, Inc.		60,000		7,550			—		—			22,000		2,768			82,000		10,318
Hewlett-Packard Co.		—		—			9,800		353			—		—			9,800		353
International Business Machines Corp.		—		—			3,150		325			—		—			3,150		325
Construction & Engineering
Jacobs Engineering Group, Inc.		64,000		2,435			5,418		206			24,000		913			93,418		3,554
Diversified Financial Services
CME Group, Inc. -Class A		—		—			1,660		367			—		—			1,660		367
JPMorgan Chase & Co.		145,000		4,785			15,500		512			48,000		1,584			208,500		6,881
Diversified Telecommunication Services
AT&T, Inc.		—		—			14,087		361			—		—			14,087		361
Verizon Communications, Inc.		220,000		6,675			—		—			60,000		1,820			280,000		8,495
Electronic Equipment & Instruments
Tyco Electronics, Ltd.		219,000		3,819			13,700		239			53,300		930			286,000		4,988
Food & Staples Retailing
Wal-Mart Stores, Inc.		75,000		3,780			—		—			24,000		1,210			99,000		4,990
Food Products
Kraft Foods, Inc. -Class A		—		—			13,600		318			—		—			13,600		318
Health Care Equipment & Supplies
Becton Dickinson & Co.		75,000		4,536			8,423		509			22,000		1,331			105,423		6,376
Covidien, Ltd.		50,000		1,649			—		—			25,000		825			75,000		2,474
Varian Medical Systems, Inc.		40,000		1,335			—		—			13,000		434			53,000		1,769
Household Products
Colgate-Palmolive Co.		—		—			7,000		413			—		—			7,000		413
Kimberly-Clark Corp.		—		—			5,000		246			—		—			5,000		246
Industrial Conglomerates
General Electric Co.		345,000		4,364			—		—			125,000		1,581			470,000		5,945
Internet & Catalog Retail
Amazon.com, Inc.		105,000		8,455			—		—			35,000		2,818			140,000		11,273
Internet Software & Services
Google, Inc. -Class A		19,000		7,523			—		—			6,200		2,455			25,200		9,978
IT Services
Automatic Data Processing, Inc.		152,000		5,350			4,000		141			44,000		1,549			200,000		7,040
Life Sciences Tools & Services
Thermo Fisher Scientific, Inc.		—		—			12,000		421			—		—			12,000		421
Machinery
Caterpillar, Inc.		85,000		3,024			5,100		181			25,000		890			115,100		4,095
Kennametal, Inc.		350,000		7,158			—		—			100,000		2,045			450,000		9,203
PACCAR, Inc.		230,000		8,151			—		—			72,000		2,551			302,000		10,702
Media
Walt Disney Co.		—		—			22,500		493			—		—			22,500		493
Metals & Mining
Cia Vale do Rio Doce -Class B ADR		—		—			18,500		305			—		—			18,500		305
Multi-Utilities
Dominion Resources, Inc.		—		—			6,000		181			—		—			6,000		181
Oil, Gas & Consumable Fuels
Anadarko Petroleum Corp.		—		—			11,000		474			—		—			11,000		474
BP PLC ADR		—		—			9,485		403			—		—			9,485		403
Exxon Mobil Corp.		—		—			10,700		713			—		—			10,700		713
XTO Energy, Inc.		—		—			15,000		520			—		—			15,000		520
Paper & Forest Products
Weyerhaeuser Co.		180,000		6,347			7,280		257			60,000		2,115			247,280		8,719
Pharmaceuticals
Bristol-Myers Squibb Co.		—		—			29,000		557			—		—			29,000		557
Merck & Co., Inc.		—		—			5,300		128			—		—			5,300		128
Teva Pharmaceutical Industries, Ltd. ADR		—		—			9,200		404			—		—			9,200		404
Real Estate Investment Trusts
Plum Creek Timber Co., Inc.		40,000		1,381			17,600		608			14,000		483			71,600		2,472
Road & Rail
Burlington Northern Santa Fe Corp.		60,000		4,049			—		—			15,000		1,012			75,000		5,061
Union Pacific Corp.		—		—			11,400		560			—		—			11,400		560
Semiconductors & Semiconductor Equipment
Intel Corp.		380,000		5,996			—		—			154,000		2,430			534,000		8,426
Software
Adobe Systems, Inc.		255,000		6,974			—		—			87,000		2,379			342,000		9,353
Intuit, Inc.		135,000		3,123			—		—			44,000		1,018			179,000		4,141
Oracle Corp.		340,000		6,576			17,500		338			115,000		2,223			472,500		9,137
Salesforce.com, Inc.		110,000		4,709			—		—			23,500		1,006			133,500		5,715
Symantec Corp.		—		—			12,605		217			—		—			12,605		217
Specialty Retail
Gap, Inc.		—		—			24,790		385			—		—			24,790		385
Home Depot, Inc.		—		—			15,500		408			—		—			15,500		408
Textiles, Apparel & Luxury Goods
Nike, Inc. -Class B		—		—			3,100		163			—		—			3,100		163
Tobacco
Lorillard, Inc.		—		—			8,000		505			—		—			8,000		505
Philip Morris International, Inc.		—		—			18,750		678			—		—			18,750		678
Trading Companies & Distributors
WW Grainger, Inc.		60,000		5,033			—		—			20,000		1,678			80,000		6,711
				171,727					15,120					55,699					242,546
	Total Cost $(189,508				)	Total Cost $(15,097				)	Total Cost $(61,849				)	Total Cost $(266,454				)

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-2

		Transamerica Premier Balanced
		Fund					Transamerica Value Balanced					Transamerica Balanced					Pro Forma Fund
		Principal		Value			Principal		Value			Principal		Value			Principal		Value
CORPORATE DEBT SECURITY (18.7%)
Airlines
Continental Airlines, Inc., 7.49%, 10/02/2010		$	638		600		$	75	$	71		$	—	$	—		$	713	$	671
Delta Air Lines, Inc., 7.57%, 11/18/2010			585		544			85		79			270		251			940		874
Auto Components
Johnson Controls, Inc., 5.25%, 01/15/2011			1,344		1,323			124		122			458		451			1,926		1,896
Beverages
Anheuser-Busch InBev Worldwide, Inc., 8.20%, 01/15/2039	-144A		833		835			80		80			283		284			1,196		1,199
Bacardi, Ltd., 7.45%, 04/01/2014	-144A		690		699			—		—			230		233			920		932
Capital Markets
Goldman Sachs Group, Inc., 6.00%, 05/01/2014			1,050		1,046			105		105			355		354			1,510		1,505
Chemicals
Dow Chemical Co., 6.13%, 02/01/2011			1,138		1,137			—		—			385		385			1,523		1,522
Lubrizol Corp., 8.88%, 02/01/2019			—		—			100		108			—		—			100		108
Potash Corp. of Saskatchewan, Inc., 6.50%, 05/15/2019			—		—			88		91			—		—			88		91
Commercial Banks
Barclays Bank PLC, 7.70%, 04/25/2018	-144A		1,090		687			120		76			395		249			1,605		1,012
BB&T Corp., 6.85%, 04/30/2019			985		959			100		97			335		326			1,420		1,382
M&I Marshall & Ilsley Bank, 1.54%, 12/04/2012			700		501			—		—			—		—			700		501
PNC Bank NA, 6.88%, 04/01/2018			745		710			110		105			270		257			1,125		1,072
PNC Bank NA, 6.00%, 12/07/2017			425		382			—		—			250		225			675		607
Wells Fargo Bank NA, 4.75%, 02/09/2015			—		—			130		112			—		—			130		112
Wells Fargo Bank NA, 5.75%, 05/16/2016			1,000		891			—		—			300		267			1,300		1,158
Commercial Services & Supplies
Allied Waste North America, Inc., 6.50%, 11/15/2010			1,000		1,020			—		—			365		372			1,365		1,392
Construction Materials
CRH America, Inc., 5.30%, 10/15/2013			—		—			100		84			—		—			100		84
Lafarge SA, 6.15%, 07/15/2011			1,335		1,298			125		122			455		442			1,915		1,862
Martin Marietta Materials, Inc., 1.19%, 04/30/2010			—		—			112		107			—		—			112		107
Consumer Finance
American Express Credit Corp., 1.84%, 05/27/2010			700		670			—		—			—		—			700		670
Discover Financial Services, 1.86%, 06/11/2010			1,173		1,034			95		84			432		381			1,700		1,499
Containers & Packaging
Rexam PLC, 6.75%, 06/01/2013	-144A		880		800			—		—			315		286			1,195		1,086
Diversified Financial Services
American Honda Finance Corp., 1.40%, 01/29/2010	-144A		—		—			130		130			—		—			130		130
Bank of America Corp., 5.75%, 12/01/2017			1,385		1,131			130		106			470		384			1,985		1,621
Bear Stearns Cos., Inc., 7.25%, 02/01/2018			1,111		1,135			103		105			378		386			1,592		1,626
General Electric Capital Corp., 6.88%, 01/10/2039			845		662			80		63			290		227			1,215		952
Glencore Funding LLC, 6.00%, 04/15/2014	-144A		706		434			80		49			200		123			986		606
Harley-Davidson Funding Corp., 5.25%, 12/15/2012	-144A		700		538			—		—			235		181			935		719
Merrill Lynch & Co., Inc., 5.45%, 02/05/2013			1,260		1,103			150		131			475		416			1,885		1,650
Pemex Finance, Ltd., 9.03%, 02/15/2011			432		447			100		104			340		352			872		903
Electric Utilities
EDF SA, 6.95%, 01/26/2039	-144A		860		907			80		84			270		285			1,210		1,276
Energy Equipment & Services
DCP Midstream LLC, 9.75%, 03/15/2019	-144A		628		623			60		60			215		213			903		896
Halliburton Co., 6.15%, 09/15/2019			1,300		1,380			120		127			445		472			1,865		1,979
NGPL Pipeco LLC, 6.51%, 12/15/2012	-144A		980		968			—		—			330		326			1,310		1,294
Weatherford International, Ltd., 7.00%, 03/15/2038			830		614			80		59			285		211			1,195		884
Food & Staples Retailing
Stater Brothers Holdings, Inc., 8.13%, 06/15/2012			650		642			100		99			225		222			975		963
Food Products
Michael Foods, Inc., 8.00%, 11/15/2013			500		473			90		85			320		302			910		860
Hotels, Restaurants & Leisure
Royal Caribbean Cruises, Ltd., 8.75%, 02/02/2011			715		669			70		65			252		236			1,037		970
Insurance
MetLife, Inc., 5.38%, 12/15/2012			950		904			96		91			320		304			1,366		1,299
Oil Insurance, Ltd., 7.56%, 06/30/2011	-144A		460		151			80		26			270		88			810		265
IT Services
Aramark Corp., 8.50%, 02/01/2015			600		573			—		—			—		—			600		573
Machinery
PACCAR, Inc., 6.88%, 02/15/2014			940		984			85		89			320		335			1,345		1,408
Media
Time Warner Cable, Inc., 6.75%, 07/01/2018			1,220		1,234			125		126			—		—			1,345		1,360
Time Warner Cable, Inc., 8.25%, 04/01/2019			—		—			—		—			200		221			200		221
Metals & Mining
Anglo American Capital PLC, 9.38%, 04/08/2019	-144A		—		—			106		108			—		—			106		108
ArcelorMittal, 5.38%, 06/01/2013			1,380		1,242			130		117			440		396			1,950		1,755
BHP Billiton Finance USA, Ltd., 6.50%, 04/01/2019			1,060		1,151			96		104			360		391			1,516		1,646
Falconbridge, Ltd., 7.35%, 06/05/2012			540		477			55		49			183		161			778		687
Rio Tinto Finance USA, Ltd., 9.00%, 05/01/2019			975		1,002			100		103			330		339			1,405		1,444
Multi-Utilities
Sempra Energy, 9.80%, 02/15/2019			1,125		1,283			105		120			380		434			1,610		1,837
Office Electronics
Xerox Corp., 7.13%, 06/15/2010			1,195		1,207			—		—			400		404			1,595		1,611
Oil, Gas & Consumable Fuels
EnCana Corp., 6.50%, 05/15/2019			—		—			71		73			—		—			71		73
Energy Transfer Partners, LP, 9.70%, 03/15/2019			805		894			75		83			275		306			1,155		1,283
Enterprise Products Operating, LP, 7.50%, 02/01/2011			1,180		1,213			120		123			400		411			1,700		1,747
Hess Corp., 8.13%, 02/15/2019			1,220		1,337			110		121			410		449			1,740		1,907
Husky Energy, Inc., 6.25%, 06/15/2012			1,025		1,018			105		104			348		346			1,478		1,468
PetroHawk Energy Corp., 9.13%, 07/15/2013			500		490			100		98			360		353			960		941
Teppco Partners, LP, 7.00%, 06/01/2067			500		271			—		—			300		163			800		434
Valero Logistics Operations, LP, 6.88%, 07/15/2012			850		827			—		—			450		439			1,300		1,266
Paper & Forest Products
Celulosa Arauco y Constitucion SA, 8.63%, 08/15/2010			—		—			171		179			—		—			171		179
Weyerhaeuser Co., 6.75%, 03/15/2012			1,085		1,083			100		100			380		379			1,565		1,562
Pharmaceuticals
Allergan, Inc., 5.75%, 04/01/2016			925		886			—		—			—		—			925		886
Real Estate Investment Trusts
PPF Funding, Inc., 5.35%, 04/15/2012	-144A		1,646		1,205			—		—			781		572			2,427		1,777
Wea Finance LLC / WCI Finance LLC, 5.40%, 10/01/2012	-144A		1,250		1,150			168		155			520		478			1,938		1,783
Weingarten Realty Investors, 5.26%, 05/15/2012			1,000		801			—		—			—		—			1,000		801
Real Estate Management & Development
Post Apartment Homes, LP, 6.30%, 06/01/2013			537		426			91		72			349		277			977		775
Road & Rail
Hertz Corp., 8.88%, 01/01/2014			470		364			75		58			200		155			745		577
Specialty Retail
Staples, Inc., 9.75%, 01/15/2014			1,205		1,322			115		126			415		455			1,735		1,903
Wireless Telecommunication Services
Centennial Communications Corp., 6.96%, 01/01/2013			500		501			—		—			170		170			670		671
					50,858					4,935					17,125					72,918
		Total Cost $(53,766				)	Total Cost $(5,121				)	Total Cost $(18,200				)	Total Cost $(77,087				)

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-3

		Transamerica Premier Balanced															Combined
		Fund					Transamerica Value Balanced					Transamerica Balanced					Pro Forma Fund
		Principal		Value			Principal		Value			Principal		Value			Principal		Value
MORTGAGE-BACKED SECURITY (1.7%)
American Tower Trust, Series 2007-1A, -Class AFX, 5.42%, 04/15/2037	-144A		1,315		1,170			—		—			450		401			1,765		1,571
American Tower Trust, Series 2007-1A, -Class C, 5.62%, 04/15/2037	-144A		—		—			155		131			—		—			155		131
Crown Castle Towers LLC, Series 2006-1A, -Class AFX, 5.24%, 11/15/2036	-144A		1,778		1,636			115		106			739		680			2,632		2,422
Small Business Administration CMBS Trust, Series 2006-1A, -Class A, 5.31%, 11/15/2036	-144A		1,770		1,655			150		140			680		635			2,600		2,430
					4,461					377					1,716					6,554
		Total Cost $(4,709				)	Total Cost $(411				)	Total Cost $(1,816				)	Total Cost $(6,936				)
MUNICIPAL GOVERNMENT OBLIGATION (0.1%)
Metropolitan Transportation Authority, 7.34%, 11/15/2039			—		—			71		76			—		—			71		76
State of California, 7.55%, 04/01/2039			—		—			75		78			250		261			325		339
					—					154					261					415
		Total Cost $(0				)	Total Cost $(149				)	Total Cost $(261				)	Total Cost $(410				)
U.S. GOVERNMENT AGENCY OBLIGATION (15.8%)
Fannie Mae, 4.50%, 07/25/2021			1,695		1,726			—		—			572		582			2,267		2,308
Fannie Mae, 4.72%, 10/01/2035			—		—			318		327			—		—			318		327
Fannie Mae, 5.00%, 02/01/2036			3,685		3,798			375		387			—		—			4,060		4,185
Fannie Mae, 5.00%, 03/01/2036			—		—			392		404			—		—			392		404
Fannie Mae, 5.00%, 03/01/2039			—		—			359		370			—		—			359		370
Fannie Mae, 5.00%, 04/25/2034			3,210		3,366			—		—			700		734			3,910		4,100
Fannie Mae, 5.00%, 05/01/2018			—		—			82		85			—		—			82		85
Fannie Mae, 5.00%, 09/01/2037			3,268		3,365			187		192			1,400		1,442			4,855		4,999
Fannie Mae, 5.50%, 01/01/2038			—		—			427		443			—		—			427		443
Fannie Mae, 5.50%, 04/01/2037			2,084		2,161			—		—			1,406		1,458			3,490		3,619
Fannie Mae, 5.50%, 07/01/2019			—		—			74		78			—		—			74		78
Fannie Mae, 5.50%, 11/01/2038			3,356		3,480			—		—			1,151		1,193			4,507		4,673
Fannie Mae, 5.77%, 12/01/2036			1,986		2,074			—		—			1,192		1,245			3,178		3,319
Fannie Mae, 6.00%, 08/01/2036			—		—			461		483			—		—			461		483
Fannie Mae, 6.00%, 12/01/2037			—		—			197		206			—		—			197		206
Freddie Mac, 4.79%, 03/01/2035			1,401		1,433			—		—			458		469			1,859		1,902
Freddie Mac, 5.00%, 01/01/2039			3,862		3,974			—		—			1,321		1,360			5,183		5,334
Freddie Mac, 5.00%, 02/01/2024			4,059		4,200			—		—			1,373		1,421			5,432		5,621
Freddie Mac, 5.00%, 04/01/2018			—		—			138		144			—		—			138		144
Freddie Mac, 5.00%, 05/15/2028			—		—			—		—			636		651			636		651
Freddie Mac, 5.00%, 07/01/2035			3,832		3,946			—		—			1,277		1,315			5,109		5,261
Freddie Mac, 5.00%, 10/15/2030			—		—			400		417			—		—			400		417
Freddie Mac, 5.00%, 11/15/2032			2,783		2,853			404		414			—		—			3,187		3,267
Freddie Mac, 5.50%, 09/01/2018			—		—			42		44			—		—			42		44
Freddie Mac, 5.50%, 11/01/2018			—		—			89		92			—		—			89		92
Freddie Mac, 5.53%, 09/01/2037			—		—			334		348			—		—			334		348
Freddie Mac, 6.00%, 12/01/2037			4,123		4,345			—		—			1,409		1,484			5,532		5,829
Ginnie Mae, 4.50%, 02/20/2037			2,338		2,364			—		—			789		798			3,127		3,162
					43,085					4,434					14,152					61,671
		Total Cost $(42,134				)	Total Cost $(4,300				)	Total Cost $(13,919				)	Total Cost $(60,353				)
U.S. GOVERNMENT OBLIGATION (1.1%)
U.S. Treasury Bond, 4.50%, 05/15/2038			567		610			6		6			48		52			621		668
U.S. Treasury Inflation Indexed Bond, 1.75%, 01/15/2028			1,246		1,121			122		109			425		383			1,793		1,613
U.S. Treasury Inflation Indexed Bond, 2.50%, 01/15/2029			1,334		1,358			124		126			455		462			1,913		1,946
U.S. Treasury Inflation Indexed Note, 1.38%, 07/15/2018			—		—			49		48			—		—			49		48
U.S. Treasury Note, 2.75%, 02/15/2019			—		—			76		74			—		—			76		74
					3,089					363					897					4,349
		Total Cost $(2,970				)	Total Cost $(349				)	Total Cost $(851				)	Total Cost $(4,170				)
REPURCHASE AGREEMENT (0.9%)
State Street Repurchase Agreement			2,429		2,429			294		294			929		929			3,652		3,652
0.01%, dated 04/30/09, to be repurchased					2,429					294					929					3,652
at $3,652 on 05/01/2009		Total Cost $(2,429				)	Total Cost $(294				)	Total Cost $(929				)	Total Cost $(3,652				)
Total Investment Securities Cost					295,516					25,721					97,825					419,062
Total Investment Securities Value					275,649					25,677					90,779					392,105
Other Assets and Liabilities, net					(952	)				(213	)				(643	)				(1,808	)
Net Assets				$	274,697				$	25,464				$	90,136				$	390,297

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 04/30/2009, these securities aggregated to $19,637, or 5.03%, of the Fund’s net assets.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-4

Reorganizations of Transamerica Premier Balanced Fund, Transamerica Value Balanced and
Transamerica Balanced
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2009
(all amounts except per share amounts in thousands)

																Assuming only the Transamerica Premier Balanced						Assuming only the Transamerica Value Balanced
	Transamerica															Fund Reorganization						Reorganization
	Premier Balanced			Transamerica			Transamerica						Combined						Combined						Combined
	Fund			Value Balanced			Balanced			Adjustments			Pro Forma Fund			Adjustments			Pro Forma Fund			Adjustments			Pro Forma Fund
Assets:
Investment securities, at value	$	273,220		$	25,383		$	89,850		$			$	388,453		$			$	363,070		$			$	115,233
Repurchase agreement, at value		2,429			294			929						3,652						3,358						1,223
Receivables:
Investment securities sold		—			360			212						572						212						572
Shares sold		24			3			17						44						41						20
Interest		1,093			103			385						1,581						1,478						488
Dividends		240			33			72						345						312						105
Dividend reclaims		2			—			60						62						62						60
Other		—			16			41						57						41						57
		277,008			26,192			91,566			—			394,766			—			368,574			—			117,758
Liabilities:
Accounts payable and accrued liabilities:														—
Investment securities purchased		2,033			608			950						3,591						2,983						1,558
Shares redeemed		15			44			261						320						276						305
Management and advisory fees		109			15			64						188						173						79
Distribution and service fees		55			12			46						113						101						58
Administration fees		7			—			1						8						8						1
Trustees fees		2			16			42						60						44						58
Transfer agent fees		61			10			29						100						90						39
Other		29			23			37						89						66						60
		2,311			728			1,430						4,469						3,741						2,158
Net Assets	$	274,697		$	25,464		$	90,136		$			$	390,297		$			$	364,833		$			$	115,600
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	327,658		$	31,994		$	106,968		$	(39,573)	(a)	$	427,047		$	(33,094)	(a)	$	401,532		$	(6,479)	(a)	$	132,483
Undistributed net investment income		2,882			404			125			(3,286)	(a)		125			(2,882)	(a)		125			(404)	(a)		125
Accumulated net realized loss from investment securities and foreign currency transactions		(35,976	)		(6,883	)		(9,899	)		42,859	(a)		(9,899	)		35,976	(a)		(9,899	)		6,883	(a)		(9,899	)
Net unrealized depreciation on:																				—						—
Investment securities		(19,867	)		(51	)		(7,064	)					(26,982	)					(26,931	)					(7,115	)
Translation of assets and liabilities denominated in foreign currencies		—			—			6						6						6						6
Net Assets	$	274,697		$	25,464		$	90,136		$	0		$	390,297		$	0		$	364,833		$	0		$	115,600
Net Assets by Class:
Class A	$			$	16,075		$	51,144		$			$	67,219		$			$	51,144		$			$	67,219
Class B					4,591			22,915						27,506						22,915						27,506
Class C					4,798			16,077						20,875						16,077						20,875
Class P											274,697	(b)		274,697			274,697	(b)		274,697						—
Investor Class		274,697									(274,697)	(b)		—			(274,697)	(b)		—						—
Shares Outstanding:
Class A					1,905			3,255			(882)	(c)		4,278						3,255			(882)	(c)		4,278
Class B					546			1,466			(252)	(c)		1,760						1,466			(252)	(c)		1,760
Class C					571			1,033			(263)	(c)		1,341						1,033			(263)	(c)		1,341
Class P											15,448	(c)		15,448			15,448	(c)		15,448						—
Investor Class		15,448									(15,448)	(c)		—			(15,448)	(c)		—						—
Net Asset Value and Offering Price Per Share:
Class A	$			$	8.44		$	15.71		$	(8.44)	(d)	$	15.71		$			$	15.71		$	(8.44)	(d)	$	15.71
Class B					8.41			15.63			(8.41)	(d)		15.63						15.63			(8.41)	(d)		15.63
Class C					8.41			15.57			(8.41)	(d)		15.57						15.57			(8.41)	(d)		15.57
Class P											17.78	(d)		17.78			17.78	(d)		17.78						—
Investor Class		17.78									(17.78)	(d)		—			(17.78)	(d)		—						—
Investment Securities, at cost	$	293,087		$	25,427		$	96,896		$	—		$	415,410		$	—		$	389,983		$	—		$	122,323
Repurchase agreement, at cost		2,429			294			929						3,652						3,358						1,223

(a) - (j)  See Note 2 of the Notes to the Pro Forma Financial Statements.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-5

Reorganizations of Transamerica Premier Balanced Fund, Transamerica Value Balanced and
Transamerica Balanced
PRO FORMA STATEMENT OF OPERATIONS
For the twelve months ended April 30, 2009
(all amounts in thousands)

																Assuming only the Transamerica Premier Balanced						Assuming only the Transamerica Value Balanced
	Transamerica															Fund Reorganization						Reorganization
	Premier Balanced			Transamerica Value			Transamerica						Combined						Combined						Combined
	Fund			Balanced			Balanced			Adjustments			Pro Forma Fund			Adjustments			Pro Forma Fund			Adjustments			Pro Forma Fund
Investment Income:
Dividend Income	$	3,373		$	834		$	1,124		$			$	5,331		$			$	4,497		$			$	1,958
Withholding taxes on foreign dividends		1			(3	)		—						(2	)					1						(3	)
Interest		6,676			711			2,406						9,793						9,082						3,117
Income from loaned securities-net		241			29			92						362						333						121
		10,291			1,571			3,622			—			15,484			—			13,913			—			5,193
Expenses:
Management and advisory fees		2,400			261			904			80	(e)		3,645			79	(e)		3,383			(55)	(e)		1,110
Printing and shareholder reports		43			(5	)		(3	)					35						40						(8	)
Custody fees		47			18			24			(37)	(f)		52			(22)	(f)		49			(15)	(f)		27
Administration fees		76			8			23						107						99						31
Legal fees		17			1			3						21						20						4
Audit fees		29			22			20			(38)	(g)		33			(24)	(g)		25			(14)	(g)		28
Trustees fees		18			1			3						22						21						4
Registration fees		35			1			13						49						48						14
Distribution and service fees:
Class A					73			193						266						193						266
Class B					73			381						454						381						454
Class C					67			200						267						200						267
Class P											843	(h)		843			843	(h)		843						—
Investor Class		843									(843)	(h)		—			(843)	(h)		—						—
Transfer agent fees
Class A					74			192						266						192						266
Class B					34			135						169						135						169
Class C					16			49						65						49						65
Class P											752	(i)		752			752	(i)		752						—
Investor Class		752									(752)	(i)		—			(752)	(i)		—						—
Other		4			31			25						60						29						56
Total expenses		4,264			675			2,162			5			7,106			33			6,459			(84	)		2,753
Class expense reimbursed (recaptured):
Class A					(26	)					26	(j)		—						—			26	(j)		—
Class B					(16	)					16	(j)		—						—			16	(j)		—
Class C					(1	)					1	(j)		—						—			1	(j)		—
Class P											(676)	(j)		(676	)		(676)	(j)		(676	)					—
Investor Class		(547	)								547	(j)		—			547	(j)		—						—
Total reimbursement of expenses		(547	)		(44	)					(86	)		(676	)		(129	)		(676	)		44			—
Net Investment Income		6,574			940			1,460			81			9,054			96			8,130			40			2,440
Net Realized Gain (Loss) from:
Investment securities		(31,772	)		(7,410	)		(9,780	)		—			(48,962	)					(41,552	)					(17,190	)
Futures Contracts								1						1						1						1
		(31,772	)		(7,410	)		(9,779	)		—			(48,961	)		—			(41,551	)		—			(17,189	)
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on:
Investment securities		(197,959	)		(6,579	)		(29,112	)		—			(233,650	)					(227,071	)					(35,691	)
Translation of assets and liabilities denominated in foreign currencies		—			—			(6	)		—			(6	)					(6	)					(6	)
		(197,959	)		(6,579	)		(29,118	)		—			(233,656	)		—			(227,077	)		—			(35,697	)
Net Realized and Unrealized Loss		(229,731	)		(13,989	)		(38,897	)		—			(282,617	)		—			(268,628	)		—			(52,886	)
Net Decrease in Net Assets Resulting from Operations	$	(223,157	)	$	(13,049	)	$	(37,437	)	$	81		$	(273,563	)	$	96		$	(260,498	)	$	40		$	(50,446	)

(a) - (j)  See Note 2 of the Notes to the Pro Forma Financial Statements.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-6

Group 2 Reorganizations

Reorganizations of Transamerica Premier Diversified Equity Fund, Transamerica Premier Institutional Diversified Equity Fund, Transamerica Science & Technology and Transamerica Templeton Global

PRO FORMA SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except per share amounts in thousands)

						Transamerica Premier
		Transamerica Premier				Institutional Diversified				Transamerica Science &				Transamerica Templeton				Combined
		Diversified Equity Fund				Equity Fund				Technology				Global				Pro Forma Fund
		Shares		Value		Shares		Value		Shares		Value		Shares		Value		Shares		Value
COMMON STOCK (97.7%)
Aerospace & Defense
BAE Systems PLC			—	$	—		—	$	—		—	$	—		112,160	$	594		112,160	$	594
Boeing Co.			22,500		901		50		2		—		—		—		—		22,550		903
Empresa Brasileira de Aeronautica SA ADR			—		—		—		—		—		—		25,360		411		25,360		411
Hexcel Corp.			—		—		—		—		136,000		1,304		—		—		136,000		1,304
Lockheed Martin Corp.			40,000		3,141		85		7		—		—		—		—		40,085		3,148
Precision Castparts Corp.			90,000		6,737		210		16		—		—		—		—		90,210		6,753
Raytheon Co.			—		—		—		—		—		—		31,000		1,402		31,000		1,402
Rolls-Royce Group PLC	§		—		—		—		—		—		—		120,661		603		120,661		603
Rolls-Royce Group PLC -Class C	ə		—		—		—		—		—		—		10,352,713		15		10,352,713		15
Air Freight & Logistics
CH Robinson Worldwide, Inc.			40,000		2,126		90		5		—		—		—		—		40,090		2,131
Deutsche Post AG			—		—		—		—		—		—		42,130		488		42,130		488
Expeditors International of Washington, Inc.			58,000		2,013		130		5		—		—		26,000		902		84,130		2,920
Auto Components
BorgWarner, Inc.			200,000		5,790		500		14		—		—		37,300		1,080		237,800		6,884
Johnson Controls, Inc.			330,000		6,273		720		14		—		—		75,000		1,426		405,720		7,713
Michelin -Class B			—		—		—		—		—		—		10,407		537		10,407		537
Automobiles
Bayerische Motoren Werke AG			—		—		—		—		—		—		21,040		731		21,040		731
Toyota Motor Corp.			—		—		—		—		—		—		13,100		511		13,100		511
Beverages
PepsiCo, Inc.			40,000		1,990		100		5		—		—		—		—		40,100		1,995
Biotechnology
Gilead Sciences, Inc.			—		—		—		—		20,700		948		51,500		2,359		72,200		3,307
Capital Markets
BlackRock, Inc. -Class A			34,000		4,982		80		12		—		—		—		—		34,080		4,994
Charles Schwab Corp.			410,000		7,577		900		17		—		—		70,285		1,299		481,185		8,893
T. Rowe Price Group, Inc.			140,000		5,393		200		8		—		—		30,000		1,156		170,200		6,557
UBS AG			—		—		—		—		—		—		17,015		238		17,015		238
Chemicals
Akzo Nobel NV			—		—		—		—		—		—		5,540		234		5,540		234
Ecolab, Inc.			128,000		4,934		290		11		—		—		31,500		1,214		159,790		6,159
Monsanto Co.			30,000		2,547		70		6		—		—		4,300		365		34,370		2,918
Praxair, Inc.			—		—		—		—		—		—		31,000		2,313		31,000		2,313
Sigma-Aldrich Corp.			135,000		5,918		310		14		—		—		36,000		1,578		171,310		7,510
Commercial Banks
Banco Santander SA			—		—		—		—		—		—		25,719		247		25,719		247
DBS Group Holdings, Ltd. ADR			—		—		—		—		—		—		132,410		926		132,410		926
HSBC Holdings PLC ADR			—		—		—		—		—		—		39,039		286		39,039		286
KB Financial Group, Inc. ADR			—		—		—		—		—		—		8,150		260		8,150		260
Mitsubishi UFJ Financial Group, Inc. ADR			—		—		—		—		—		—		32,270		175		32,270		175
National Australia Bank, Ltd.			—		—		—		—		—		—		34,025		510		34,025		510
Nordea Bank AB			—		—		—		—		—		—		67,010		492		67,010		492
UniCredit SpA			—		—		—		—		—		—		173,709		430		173,709		430
Wells Fargo & Co.			—		—		—		—		—		—		58,800		1,177		58,800		1,177
Commercial Services & Supplies
Brambles, Ltd.			—		—		—		—		—		—		55,748		240		55,748		240
Group 4 Securicor PLC			—		—		—		—		—		—		161,830		452		161,830		452
Loomis AB			—		—		—		—		—		—		5,150		44		5,150		44
Communications Equipment
Cisco Systems, Inc.			—		—		—		—		30,000		580		50,000		966		80,000		1,546
F5 Networks, Inc.			—		—		—		—		55,500		1,513		—		—		55,500		1,513
Juniper Networks, Inc.			—		—		—		—		45,000		974		—		—		45,000		974
Palm, Inc.			—		—		—		—		221,500		2,324		—		—		221,500		2,324
Polycom, Inc.			—		—		—		—		120,000		2,237		—		—		120,000		2,237
Qualcomm, Inc.			90,000		3,809		210		9		33,000		1,397		51,500		2,179		174,710		7,394
Computers & Peripherals
Apple, Inc.			62,000		7,801		150		19		15,900		2,001		20,100		2,529		98,150		12,350
Data Domain, Inc.			—		—		—		—		135,500		2,247		—		—		135,500		2,247
EMC Corp. -Series MA			—		—		—		—		85,500		1,071		—		—		85,500		1,071
Hewlett-Packard Co.			195,000		7,016		450		16		—		—		11,000		396		206,450		7,428
International Business Machines Corp.			—		—		—		—		—		—		9,500		980		9,500		980
Lite-On Technology Corp. GDR			—		—		—		—		—		—		30,712		246		30,712		246
Construction & Engineering
Jacobs Engineering Group, Inc.			85,000		3,233		200		8		—		—		20,000		761		105,200		4,002
Construction Materials
CRH PLC			—		—		—		—		—		—		21,612		564		21,612		564
Consumer Finance
Promise Co., Ltd.			—		—		—		—		—		—		26,150		344		26,150		344
Diversified Consumer Services
Capella Education Co.			—		—		—		—		11,100		570		—		—		11,100		570
Diversified Financial Services
Bank of America Corp.			180,495		1,612		403		4		—		—		—		—		180,898		1,616
ING Groep NV ADR			—		—		—		—		—		—		42,040		391		42,040		391
JPMorgan Chase & Co.			170,000		5,610		370		12		—		—		—		—		170,370		5,622

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-7

						Transamerica Premier
		Transamerica Premier				Institutional Diversified				Transamerica Science &				Transamerica Templeton				Combined
		Diversified Equity Fund				Equity Fund				Technology				Global				Pro Forma Fund
		Shares		Value		Shares		Value		Shares		Value		Shares		Value		Shares		Value
Diversified Telecommunication Services
AT&T, Inc.			—		—		—		—		54,100		1,386		37,000		948		91,100		2,334
China Telecom Corp., Ltd.			—		—		—		—		—		—		670,000		333		670,000		333
Chunghwa Telecom Co., Ltd. ADR			—		—		—		—		—		—		11,348		214		11,348		214
France Telecom SA			—		—		—		—		—		—		47,180		1,053		47,180		1,053
Singapore Telecommunications, Ltd.			—		—		—		—		—		—		378,000		654		378,000		654
Telefonica SA			—		—		—		—		—		—		57,454		1,095		57,454		1,095
Telekom Austria AG			—		—		—		—		—		—		41,880		555		41,880		555
Telenor ASA			—		—		—		—		—		—		88,850		558		88,850		558
Verizon Communications, Inc.			255,000		7,737		600		18		45,000		1,365		—		—		300,600		9,120
Electric Utilities
E.ON AG ADR			—		—		—		—		—		—		24,540		826		24,540		826
Electrical Equipment
Emerson Electric Co.			—		—		—		—		—		—		23,500		800		23,500		800
Vestas Wind Systems			—		—		—		—		—		—		6,730		444		6,730		444
Electronic Equipment & Instruments
DTS, Inc.			—		—		—		—		32,000		853		—		—		32,000		853
Flextronics International, Ltd.			—		—		—		—		—		—		61,830		240		61,830		240
FLIR Systems, Inc.			—		—		—		—		53,500		1,187		—		—		53,500		1,187
Fujifilm Holdings Corp.			—		—		—		—		—		—		16,700		423		16,700		423
Itron, Inc.			—		—		—		—		24,000		1,104		—		—		24,000		1,104
Mabuchi Motor Co., Ltd.			—		—		—		—		—		—		12,400		560		12,400		560
Tyco Electronics, Ltd.			230,000		4,011		520		9		—		—		36,945		644		267,465		4,664
Energy Equipment & Services
Aker Kvaerner ASA			—		—		—		—		—		—		17,210		106		17,210		106
Schlumberger, Ltd.			30,000		1,470		75		4		—		—		—		—		30,075		1,474
Food & Staples Retailing
Costco Wholesale Corp.			78,000		3,791		170		8		—		—		—		—		78,170		3,799
Tesco PLC			—		—		—		—		—		—		103,780		518		103,780		518
Wal-Mart Stores, Inc.			—		—		—		—		—		—		15,985		806		15,985		806
Food Products
Cadbury PLC			—		—		—		—		—		—		38,348		288		38,348		288
Nestle SA ADR			—		—		—		—		—		—		24,375		791		24,375		791
Unilever PLC			—		—		—		—		—		—		34,487		677		34,487		677
Health Care Equipment & Supplies
Becton Dickinson & Co.			75,000		4,536		175		11		—		—		14,000		847		89,175		5,394
Covidien, Ltd.			55,000		1,814		130		4		24,700		815		—		—		79,830		2,633
Intuitive Surgical, Inc.			—		—		—		—		9,700		1,394		—		—		9,700		1,394
NuVasive, Inc.			—		—		—		—		38,000		1,440		—		—		38,000		1,440
Olympus Corp.			—		—		—		—		—		—		27,800		451		27,800		451
Varian Medical Systems, Inc.			—		—		—		—		—		—		22,015		735		22,015		735
Celesio AG			—		—		—		—		—		—		19,660		437		19,660		437
Hotels, Restaurants & Leisure
Accor SA			—		—		—		—		—		—		7,040		300		7,040		300
Autogrill SpA			—		—		—		—		—		—		32,781		251		32,781		251
Compass Group PLC			—		—		—		—		—		—		92,320		442		92,320		442
Household Durables
Sony Corp. ADR			—		—		—		—		—		—		10,560		273		10,560		273
Industrial Conglomerates
General Electric Co.			—		—		—		—		—		—		92,000		1,164		92,000		1,164
Hutchison Whampoa, Ltd.			—		—		—		—		—		—		59,000		350		59,000		350
Koninklijke Philips Electronics NV			—		—		—		—		—		—		33,360		607		33,360		607
Siemens AG			—		—		—		—		—		—		11,760		794		11,760		794
Insurance
ACE, Ltd.			—		—		—		—		—		—		18,590		861		18,590		861
Aviva PLC			—		—		—		—		—		—		92,990		434		92,990		434
AXA SA			—		—		—		—		—		—		36,800		621		36,800		621
Muenchener Rueckversicherungs AG			—		—		—		—		—		—		4,810		666		4,810		666
Swiss Reinsurance			—		—		—		—		—		—		11,470		276		11,470		276
Internet & Catalog Retail
Amazon.com, Inc.			105,000		8,455		240		19		29,500		2,375		34,000		2,738		168,740		13,587
priceline.com, Inc.			—		—		—		—		11,400		1,107		—		—		11,400		1,107
Internet Software & Services
Equinix, Inc.			—		—		—		—		30,200		2,121		—		—		30,200		2,121
Google, Inc. -Class A			13,000		5,148		30		12		3,900		1,544		5,000		1,980		21,930		8,684
Vocus, Inc.			—		—		—		—		74,538		1,267		—		—		74,538		1,267
IT Services
Automatic Data Processing, Inc.			—		—		—		—		—		—		23,330		821		23,330		821
Leisure Equipment & Products
Hasbro, Inc.			113,300		3,021		250		7		—		—		—		—		113,550		3,028
Life Sciences Tools & Services
Lonza Group AG			—		—		—		—		—		—		7,370		679		7,370		679
Millipore Corp.			35,000		2,069		80		5		—		—		—		—		35,080		2,074
Machinery
Caterpillar, Inc.			70,000		2,491		160		6		—		—		17,695		630		87,855		3,127
Donaldson Co., Inc.			100,000		3,299		240		8		—		—		—		—		100,240		3,307
Kennametal, Inc.			320,000		6,544		720		15		—		—		—		—		320,720		6,559
PACCAR, Inc.			155,000		5,493		350		12		—		—		36,000		1,276		191,350		6,781
Media
British Sky Broadcasting Group PLC			—		—		—		—		—		—		79,790		575		79,790		575
Pearson PLC			—		—		—		—		—		—		31,090		325		31,090		325
Reed Elsevier NV			—		—		—		—		—		—		26,984		298		26,984		298
Vivendi			—		—		—		—		—		—		26,410		715		26,410		715
Walt Disney Co.			250,000		5,475		555		12		—		—		38,000		832		288,555		6,319
Metals & Mining
Alumina, Ltd.	§		—		—		—		—		—		—		96,049		104		96,049		104
Cia Vale do Rio Doce — Class B ADR			—		—		—		—		—		—		15,230		251		15,230		251
Multi-Utilities
GDF Suez			—		—		—		—		—		—		14,448		522		14,448		522
Suez Environnement SA			—		—		—		—		—		—		3,787		58		3,787		58
Office Electronics
Konica Minolta Holdings, Inc.			—		—		—		—		—		—		54,500		443		54,500		443
Oil, Gas & Consumable Fuels
Anadarko Petroleum Corp.			49,000		2,110		115		5		—		—		—		—		49,115		2,115

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-8

						Transamerica Premier
		Transamerica Premier				Institutional Diversified				Transamerica Science &				Transamerica Templeton				Combined
		Diversified Equity Fund				Equity Fund				Technology				Global				Pro Forma Fund
		Shares		Value		Shares		Value		Shares		Value		Shares		Value		Shares		Value
BP PLC ADR			—		—		—		—		—		—		18,170		771		18,170		771
ENI SpA ADR			—		—		—		—		—		—		17,185		734		17,185		734
Petroleo Brasileiro SA -Class A ADR			—		—		—		—		—		—		13,480		364		13,480		364
Royal Dutch Shell PLC -Class B			—		—		—		—		—		—		29,130		671		29,130		671
Sasol, Ltd. ADR			—		—		—		—		—		—		16,850		507		16,850		507
Statoilhydro ASA			—		—		—		—		—		—		11,180		213		11,180		213
Total SA			—		—		—		—		—		—		21,742		1,103		21,742		1,103
Paper & Forest Products
Weyerhaeuser Co.			160,000		5,641		350		11		—		—		—		—		160,350		5,652
Pharmaceuticals
Allergan, Inc.			—		—		—		—		24,200		1,129		6,730		314		30,930		1,443
GlaxoSmithKline PLC			—		—		—		—		—		—		44,309		688		44,309		688
Merck KGAA			—		—		—		—		—		—		6,870		618		6,870		618
Novartis AG ADR			—		—		—		—		—		—		16,740		635		16,740		635
Roche Holding AG-Genusschein			—		—		—		—		—		—		2,640		334		2,640		334
Sanofi-Aventis SA			—		—		—		—		—		—		16,139		935		16,139		935
Takeda Pharmaceutical Co., Ltd.			—		—		—		—		—		—		8,300		295		8,300		295
Teva Pharmaceutical Industries, Ltd. ADR			—		—		—		—		—		—		12,495		548		12,495		548
Professional Services
Adecco SA			—		—		—		—		—		—		12,770		506		12,770		506
Randstad Holding NV			—		—		—		—		—		—		12,460		288		12,460		288
Real Estate Investment Trusts
Plum Creek Timber Co., Inc.			130,000		4,488		320		11		—		—		—		—		130,320		4,499
Real Estate Management & Development
Cheung Kong Holdings, Ltd.			—		—		—		—		—		—		47,000		489		47,000		489
Road & Rail
Burlington Northern Santa Fe Corp.			60,000		4,049		140		9		—		—		—		—		60,140		4,058
Union Pacific Corp.			—		—		—		—		—		—		23,000		1,130		23,000		1,130
Semiconductors & Semiconductor Equipment
Intel Corp.			255,000		4,024		500		8		32,000		505		—		—		287,500		4,537
Samsung Electronics Co., Ltd. GDR	-144A		—		—		—		—		—		—		4,030		915		4,030		915
Taiwan Semiconductor Manufacturing Co., Ltd. ADR			—		—		—		—		—		—		62,781		664		62,781		664
Software
Activision Blizzard, Inc.			160,000		1,723		400		4		182,500		1,966		—		—		342,900		3,693
Adobe Systems, Inc.			238,000		6,508		515		14		41,000		1,121		—		—		279,515		7,643
Check Point Software Technologies			—		—		—		—		—		—		24,050		557		24,050		557
Concur Technologies, Inc.			—		—		—		—		47,500		1,286		—		—		47,500		1,286
Informatica Corp.			—		—		—		—		63,000		1,002		—		—		63,000		1,002
Intuit, Inc.			160,000		3,701		350		8		—		—		—		—		160,350		3,709
Nintendo Co., Ltd. — ADR			—		—		—		—		30,200		1,016		2,200		587		32,400		1,603
Nuance Communications, Inc.			—		—		—		—		140,000		1,869		—		—		140,000		1,869
Oracle Corp.			215,000		4,158		475		9		—		—		—		—		215,475		4,167
Salesforce.com, Inc.			113,000		4,838		260		11		52,500		2,248		—		—		165,760		7,097
SAP AG			—		—		—		—		—		—		17,410		668		17,410		668
Specialty Retail
Kingfisher PLC ADR			—		—		—		—		—		—		175,510		618		175,510		618
USS Co., Ltd.			—		—		—		—		—		—		7,410		334		7,410		334
Textiles, Apparel & Luxury Goods
Nike, Inc. -Class B			100,000		5,247		200		10		—		—		—		—		100,200		5,257
Trading Companies & Distributors
Wolseley PLC			—		—		—		—		—		—		14,163		257		14,163		257
WW Grainger, Inc.			62,000		5,201		100		8		—		—		—		—		62,100		5,209
Wireless Telecommunication Services
American Tower Corp. -Class A			—		—		—		—		32,000		1,016		—		—		32,000		1,016
NII Holdings, Inc.			—		—		—		—		60,600		979		—		—		60,600		979
SBA Communications Corp. -Class A			—		—		—		—		39,000		983		—		—		39,000		983
Sprint Nextel Corp.			—		—		—		—		370,000		1,613		—		—		370,000		1,613
Turkcell Iletisim Hizmet AS ADR			—		—		—		—		—		—		47,270		600		47,270		600
Vodafone Group PLC			—		—		—		—		—		—		618,342		1,140		618,342		1,140
					206,445				462				51,857				85,823				344,587
		Total Cost $(237,242)				Total Cost $(516)					Total Cost $(53,572)			Total Cost $(111,883)					Total Cost $(403,213)

	Principal		Value		Principal		Value			Principal			Value			Principal			Value			Principal		Value
REPURCHASE AGREEMENT (2.1%)
State Street Repurchase Agreement	$	5,732		5,732	$	4		4		$	693			693		$	1,069			1,069		$	7,498		7,498
0.01%, dated 04/30/09, to be repurchased at $7,498 on 05/01/2009				5,732				4						693						1,069					7,498
			Total Cost $(5,732)				Total Cost $(4)					Total Cost $(693			)			Total Cost $(1,069			)			Total Cost $(7,498)
Total Investment Securities Cost				242,974				520						54,265						112,952					410,711
Total Investment Securities Value				212,177				466						52,550						86,892					352,085
Other Assets and Liabilities, net				176				(6	)					(22	)					354					502
Net Assets			$	212,353			$	460					$	52,528					$	87,246				$	352,587

§	Illiquid. These securities aggregated to $707, or 0.20%, of the Fund’s net assets.
ə	Securities fair valued as determined in good faith in accordance with procedures established by the Board of Trustees.
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 04/30/2009, these securities aggregated to $915, or 0.26%, of the Fund’s net assets.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-9

Reorganization of Transamerica Premier Diversified Equity Fund, Transamerica Premier Institutional Diversified Equity Fund, Transamerica Science & Technology and Transamerica Templeton Global

PRO FORMA STATEMENT OF ASSETS AND LIABILITIES

At April 30, 2009

(all amounts except per share amounts in thousands)

																			Assuming only the Transamerica Premier Diversified Equity						Assuming only the Transamerica Premier Diversified Institutional Equity						Assuming only the Transamerica Science and Technology						Assuming only the Transamerica Templeton Global
				Transamerica
	Transamerica			Premier
	Premier			Institutional			Transamerica
	Diversified			Diversified			Science &			Transamerica						Combined						Combined						Combined						Combined						Combined
	Equity Fund			Equity Fund			Technology			Templeton Global			Adjustments			Pro Forma Fund			Adjustments			Pro Forma Fund			Adjustments			Pro Forma Fund			Adjustments			Pro Forma Fund			Adjustments			Pro Forma Fund
Assets:
Investment securities, at value	$	206,445		$	462		$	51,857		$	85,823		$			$	344,587					$	206,445					$	462					$	51,857					$	85,823
Repurchase agreement, at value		5,732			4			693			1,069						7,498						5,732						4						693						1,069
Foreign Currency, at value											303						303						—						—						—						303
Cash Receivables:
Investment securities sold		—			—			—			106						106						—						—						—						106
Shares sold		134			—			16			12						162						134						—						16						12
Income from loaned securities		1			—			—			—						1						1						—						—						—
Dividends		263			1			47			260						571						263						1						47						260
Dividend reclaims		2			—			—			186						188						2						—						—						186
Due from advisor		—			4			—			—						4						—						4						—						—
Other		—			—			4			119						123						—						—						4						119
		212,577			471			52,617			87,878			—			353,543			—			212,577			—			471			—			52,617			—			87,878
Liabilities:
Accounts payable and accrued liabilities:
Investment securities purchased		—			—			—			233						233						—						—						—						233
Shares redeemed		3			—			4			118						125						3						—						4						118
Management and advisory fees		84			—			26			26						136						84						—						26						26
Distribution and service fees		41			—			3			35						79						41						—						3						35
Administration fees		5			—			1			1						7						5						—						1						1
Trustees fees		1			—			4			120						125						1						—						4						120
Transfer agent fees		68			—			4			57						129						68						—						4						57
Other		22			11			47			42						122						22						11						47						42
		224			11			89			632			—			956			—			224			—			11			—			89			—			632
Net Assets	$	212,353		$	460		$	52,528		$	87,246		$	—		$	352,587			—		$	212,353			—		$	460			—		$	52,528			—		$	87,246
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	263,398		$	561		$	67,381		$	424,150		$	(323,964	)(a)	$	431,526					$	263,398			(46	)(a)	$	515			(13,136	)(a)	$	54,245			(310,782	)(a)	$	113,368
Undistributed net investment income		939			2			(108	)		221			(115	)(a)		939						939			(2	)(a)		—			108	(a)		—			(221	)(a)		—
Accumulated net realized loss from investment securities and foreign currency transactions		(21,187	)		(48	)		(13,028	)		(311,003	)		324,079	(a)		(21,187	)					(21,187	)		48	(a)		—			13,028	(a)		—			311,003	(a)		—
Net unrealized depreciation on:																																			—						—
Investment securities		(30,797	)		(55	)		(1,717	)		(26,114	)					(58,683	)					(30,797	)					(55	)					(1,717	)					(26,114	)
Translation of assets and liabilities denominated in foreign currencies		—			—			—			(8	)					(8	)					—						—						—						(8	)
Net Assets	$	212,353		$	460		$	52,528		$	87,246		$	—		$	352,587			—		$	212,353			—		$	460			—		$	52,528			—		$	87,246
Net Assets by Class:
Class A	$			$			$	3,837		$	66,634		$			$	70,471					$	—					$	—					$	3,837					$	66,634
Class B								1,642			8,208						9,850						—						—						1,642						8,208
Class C								1,260			12,404						13,664						—						—						1,260						12,404
Class I								45,789						460	(b)		46,249						—			460	(b)		460						45,789						—
Class P														212,353	(b)		212,353			212,353	(b)		212,353						—						—						—
Investor Class		212,353												(212,353	)(b)		—			(212,353	)(b)		—						—						—						—
Institutional Class					460									(460	)(b)		—						—			(460	)(b)		—						—						—
Shares Outstanding:
Class A								1,327			3,541			6,770	(c)		11,638						—						—			(958	)(c)		369			2,860	(c)		6,401
Class B								603			463			946	(c)		2,012						—						—			(445	)(c)		158			325	(c)		788
Class C								463			704			1,313	(c)		2,480						—						—			(342	)(c)		121			488	(c)		1,192
Class I								15,496						4,387	(c)		19,883						—			47	(c)		47			(11,097	)(c)		4,399						—
Class P														20,393	(c)		20,393			20,393	(c)		20,393						—						—						—
Investor Class		20,393												(20,393	)(c)		—			(20,393	)(c)		—						—						—						—
Institutional Class					56									(56	)(c)		—						—			(56	)(c)		—						—						—
Net Asset Value and Offering Price Per Share:
Class A								2.89			18.82			(11.30	)(d)		10.41						—						—			7.52	(d)		10.41			(8.41	)(d)		10.41
Class B								2.72			17.75			(10.06	)(d)		10.41						—						—			7.69	(d)		10.41			(7.34	)(d)		10.41
Class C								2.72			17.62			(9.93	)(d)		10.41						—						—			7.69	(d)		10.41			(7.21	)(d)		10.41
Class I								2.95						7.46	(d)		10.41						—			10.41	(d)		10.41			7.46	(d)		10.41						—
Class P														10.41	(d)		10.41			10.41	(d)		10.41						—						—						—
Investor Class		10.41												(10.41	)(d)		—			(10.41	)(d)		—						—						—						—
Institutional Class					8.21									(8.21	)(d)		—						—			(8.21	)(d)		—						—						—
Investment Securities, at cost	$	237,242		$	516		$	53,572		$	111,883					$	403,213					$	237,242.00					$	516					$	53,572					$	111,883
Repurchase agreement, at cost		5,732			4			693			1,069						7,498						5,732.00						4						693						1,069
Foreign currency, at cost		—			—			—			313						313						—						—						—						313

(a) – (j) See Note 2 of the Notes to the Pro Forma Financial Statements.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-10

Reorganization of Transamerica Premier Diversified Equity Fund, Transamerica Premier Institutional Diversified Equity Fund, Transamerica Science & Technology and Transamerica Templeton Global
PRO FORMA STATEMENT OF OPERATIONS
For the twelve months ended April 30, 2009
(all amounts in thousands)

																									Assuming only the Transamerica Premier
																			Assuming only the Transamerica Premier						Institutional Diversified Equity Fund						Assuming only the Transamerica Science						Assuming only the Transamerica
				Transamerica															Diversified Equity Fund Reorganization						Reorganization						& Technology Reorganization						Templeton Global Reorganization
				Premier
	Transamerica			Institutional			Transamerica			Transamerica						Combined						Combined						Combined						Combined						Combined
	Premier Diversified			Diversified			Science &			Templeton						Pro Forma						Pro Forma						Pro Forma						Pro Forma						Pro Forma
	Equity Fund			Equity Fund			Technology			Global			Adjustments			Fund			Adjustments			Fund			Adjustments			Fund			Adjustments			Fund			Adjustments			Fund
Investment Income:
Dividend Income	$	3,528		$	7		$	236		$	3,474		$			$	7,245		$			$	3,528		$			$	7		$			$	236		$			$	3,474
Withholding taxes on foreign dividends		—			—			—			(247	)					(247	)					—						—						—						(247	)
Interest		67			—			11			28						106						67						—						11						28
Income from loaned securities-net		194			1			140			101						436						194						1						140						101
		3,789			8			387			3,356			—			7,540			—			3,789			—			8			—			387			—			3,356
Expenses:
Management and advisory fees		1,630			3			479			934			(78)	(e)		2,968			31	(e)		1,661			1	(e)		4			(29)	(e)		450			(81)	(e)		853
Printing and shareholder reports		26			—			9			(28	)					7						26						—						9						(28	)
Custody fees		28			4			12			66			(69)	(f)		41						28						4						12						66
Administration fees		51			—			13			24						88						51						—						13						24
Legal fees		11			—			2			4						17						11						—						2						4
Audit fees		26			22			19			25			(49)	(g)		43						26						22						19						25
Trustees fees		12			—			1			3						16						12						—						1						3
Registration fees		37			25			20			7						89						37						25						20						7
Distribution and service fees:																	—						—						—						—						—
Class A								16			296						312						—						—						16						296
Class B								24			152						176						—						—						24						152
Class C								16			169						185						—						—						16						169
Class P														569	(h)		569			569	(h)		569						—						—						—
Investor Class		569												(569)	(h)		—			(569)	(h)		—						—						—						—
Transfer agent fees																							—						—						—
Class A								26			462						488						—						—						26						462
Class B								21			112						133						—						—						21						112
Class C								9			84						93						—						—						9						84
Class P														607	(i)		607			607	(i)		607						—						—						—
Investor Class		607												(607)	(i)		—			(607)	(i)		—						—						—						—
Other		—			(2	)		47			6						51						—						(2	)					47						6
Total expenses		2,997			52			714			2,316			(196	)		5,883			31			3,028			1			53			(29	)		685			(81	)		2,235
Class expense reimbursed (recaptured):
Class A								(17	)		(201	)		44	(j)		(174	)					—						—			2	(j)		(15	)		34	(j)		(167	)
Class B								(16	)		(63	)		11	(j)		(69	)					—						—			1	(j)		(15	)		6	(j)		(57	)
Class C								(6	)		(31	)		10	(j)		(27	)					—						—			1	(j)		(5	)		7	(j)		(24	)
Class I								—									—						—			47	(j)		47						—						—
Class P														(417)	(j)		(417	)		(411)	(j)		(411	)					—						—						—
Investor Class		(380	)											380	(j)		—			380	(j)		—						—						—						—
Institutional Class		—			(48	)								48	(j)		—						—						(48	)					—						—
Total reimbursement of expenses		(380	)		(48	)		(39	)		(295	)		76			(687	)		(31	)		(411	)		47			(1	)		4			(35	)		46			(249	)
Net Investment Income		1,172			4			(288	)		1,335			120			2,344			—			1,172			(48	)		(44	)		25			(263	)		35			1,370
Net Realized Gain (Loss) from:
Investment securities		(25,516	)		(57	)		(15,016	)		(19,325	)		—			(59,914	)		—			(25,516	)		—			(57	)		—			(15,016	)		—			(19,325	)
Foreign currency transactions		—			—			(1	)		(545	)					(546	)					—						—						(1	)					(545	)
		(25,516	)		(57	)		(15,017	)		(19,870	)		—			(25,573	)		—			(25,516	)		—			(57	)		—			(15,017	)		—			(19,870	)
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on:
Investment securities		(137,447	)		(373	)		(13,246	)		(48,733	)		—			(199,799	)		—			(137,447	)		—			(373	)		—			(13,246	)		—			(48,733	)
Translation of assets and liabilities denominated in foreign currencies		—			—			1			(35	)					(34	)					—						—						1						(35	)
		(137,447	)		(373	)		(13,245	)		(48,768	)		—			(199,833	)		—			(137,447	)		—			(373	)		—			(13,245	)		—			(48,768	)
Net Realized and Unrealized Loss		(162,963	)		(430	)		(28,262	)		(68,638	)		—			(260,293	)		—			(162,963	)		—			(430	)		—			(28,262	)		—			(68,638	)
Net Decrease in Net Assets Resulting from Operations	$	(161,791	)	$	(426	)	$	(28,550	)	$	(67,303	)	$	120		$	(257,949	)	$	—		$	(161,791	)	$	(48	)	$	(48	)	$	25		$	25		$	35		$	35

(a) – (j) See Note 2 of the Notes to the Pro Forma Financial Statements.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-11

Group 3 Reorganizations

Reorganizations of Transamerica Premier Equity Fund, Transamerica Premier Institutional Equity Fund and Transamerica Equity
PRO FORMA SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except per share amounts in thousands)

						Transamerica Premier Institutional										Combined
	Transamerica Premier Equity Fund					Equity Fund					Transamerica Equity					Pro Forma Fund
	Shares		Value			Shares		Value			Shares		Value			Shares		Value
COMMON STOCK (98.8%)
Aerospace & Defense
Raytheon Co.		341,896	$	15,464			58,000	$	2,623			690,000	$	31,209			1,089,896	$	49,296
Air Freight & Logistics
Expeditors International of Washington, Inc.		279,733		9,710			47,000		1,631			565,000		19,611			891,733		30,952
Auto Components
BorgWarner, Inc.		414,715		12,006			68,500		1,983			793,400		22,969			1,276,615		36,958
Johnson Controls, Inc.		817,005		15,531			130,000		2,471			1,630,000		30,986			2,577,005		48,988
Biotechnology
Gilead Sciences, Inc.		470,661		21,556			77,300		3,540			1,100,000		50,380			1,647,961		75,476
Capital Markets
Charles Schwab Corp.		719,421		13,295			114,965		2,125			1,536,280		28,390			2,370,666		43,810
T. Rowe Price Group, Inc.		331,239		12,759			60,000		2,311			660,000		25,423			1,051,239		40,493
Chemicals
Ecolab, Inc.		195,368		7,531			40,000		1,542			670,000		25,829			905,368		34,902
Monsanto Co.		50,000		4,245			10,000		849			100,000		8,489			160,000		13,583
Praxair, Inc.		337,456		25,178			56,000		4,178			674,000		50,287			1,067,456		79,643
Sigma-Aldrich Corp.		412,939		18,103			70,000		3,069			770,000		33,757			1,252,939		54,929
Commercial Banks
Wells Fargo & Co.		639,395		12,794			110,000		2,201			1,280,000		25,613			2,029,395		40,608
Communications Equipment
Cisco Systems, Inc.		546,150		10,552			100,000		1,932			1,060,000		20,479			1,706,150		32,963
Qualcomm, Inc.		586,114		24,804			92,000		3,893			1,100,000		46,552			1,778,114		75,249
Computers & Peripherals
Apple, Inc.		222,010		27,936			32,100		4,039			422,000		53,100			676,110		85,075
Hewlett-Packard Co.		119,885		4,313			20,000		720			240,000		8,635			379,885		13,668
International Business Machines Corp.		103,014		10,632			16,400		1,693			206,000		21,261			325,414		33,586
Construction & Engineering
Jacobs Engineering Group, Inc.		213,131		8,108			35,000		1,331			420,000		15,977			668,131		25,416
Diversified Telecommunication Services
AT&T, Inc.		417,379		10,693			67,000		1,717			810,000		20,752			1,294,379		33,162
Electrical Equipment
Emerson Electric Co.		254,867		8,676			50,000		1,702			511,000		17,394			815,867		27,772
Electronic Equipment & Instruments
Tyco Electronics, Ltd.		403,605		7,039			66,825		1,165			806,285		14,062			1,276,715		22,266
Food & Staples Retailing
Wal-Mart Stores, Inc.		150,080		7,564			24,000		1,210			350,955		17,688			525,035		26,462
Health Care Equipment & Supplies
Becton Dickinson & Co.		230,890		13,964			40,000		2,419			435,000		26,309			705,890		42,692
Varian Medical Systems, Inc.		244,303		8,152			40,020		1,335			488,225		16,292			772,548		25,779
Industrial Conglomerates
General Electric Co.		959,093		12,133			155,000		1,961			1,925,000		24,351			3,039,093		38,445
Internet & Catalog Retail
Amazon.com, Inc.		304,618		24,528			54,000		4,348			725,000		58,377			1,083,618		87,253
Internet Software & Services
Google, Inc. -Class A		53,283		21,098			8,700		3,445			105,000		41,577			166,983		66,120
IT Services
Automatic Data Processing, Inc.		254,415		8,955			50,620		1,782			509,275		17,926			814,310		28,663
Machinery
Caterpillar, Inc.		192,782		6,859			30,920		1,100			385,900		13,730			609,602		21,689
PACCAR, Inc.		386,297		13,690			64,000		2,269			774,000		27,431			1,224,297		43,390
Media
Walt Disney Co.		417,382		9,141			66,000		1,445			830,000		18,177			1,313,382		28,763
Pharmaceuticals
Allergan, Inc.		96,796		4,517			16,000		747			142,055		6,628			254,851		11,892
Teva Pharmaceutical Industries, Ltd. ADR		124,325		5,457			22,000		966			272,840		11,976			419,165		18,399
Road & Rail
Union Pacific Corp.		248,651		12,219			42,000		2,064			490,000		24,079			780,651		38,362
				429,202					71,806					875,696					1,376,704
			Total Cost $(506,077)					Total Cost $(85,879)					Total Cost $(969,233)					Total Cost $(1,561,189)
	Principal		Value			Principal		Value			Principal		Value			Principal		Value
REPURCHASE AGREEMENT (1.6%)
State Street Repurchase Agreement	$	6,084		6,084		$	2,167		2,167		$	14,045		14,045		$	22,296		22,296
0.01%, dated 04/30/09, to be repurchased				6,084					2,167					14,045					22,296
at $22,296 on 05/01/2009			Total Cost $(6,084)					Total Cost $(2,167)					Total Cost $(14,045)					Total Cost $(22,296)
Total Investment Securities Cost				512,161					88,046					983,278					1,583,485
Total Investment Securities Value				435,286					73,973					889,741					1,399,000
Other Assets and Liabilities, net				(774	)				(1,505	)				(3,202	)				(5,481	)
Net Assets			$	434,512				$	72,468				$	886,539				$	1,393,519

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-12

Reorganizations of Transamerica Premier Equity Fund, Transamerica Premier Institutional Equity Fund and Transamerica Equity
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2009
(all amounts except per share amounts in thousands)

																Assuming only the Transamerica Premier Equity Fund						Assuming only the Transamerica Premier Institutional
	Transamerica			Transamerica												Reorganization						Equity Fund Reorganization
	Premier Equity			Premier Institutional			Transamerica						Combined						Combined						Combined
	Fund			Equity Fund			Equity			Adjustments			Pro Forma Fund			Adjustments			Pro Forma Fund			Adjustments			Pro Forma Fund
Assets:
Investment securities, at value	$	429,201		$	71,806		$	875,696		$			$	1,376,703		$			$	1,304,897		$			$	947,502
Repurchase agreement, at value		6,084			2,167			14,045						22,296						20,129						16,212
Receivables:
Investment securities sold		—			—			2,236						2,236						2,236						2,236
Shares sold		525			29			376						930						901						405
Dividends		423			69			837						1,329						1,260						906
Dividend reclaims		—			—			369						369						369						369
Other		—			—			422						422						422						422
		436,233			74,071			893,981						1,404,285						1,330,214						968,052
Liabilities:
Accounts payable and accrued liabilities:
Investment securities purchased		—			1,551			5,261						6,812						5,261						6,812
Shares redeemed		1,254			—			672						1,926						1,926						672
Management and advisory fees		226			32			677						935						903						709
Distribution and service fees		87			—			139						226						226						139
Administration fees		12			2			14						28						26						16
Trustees fees		3			—			427						430						430						427
Transfer agent fees		110			2			141						253						251						143
Other		29			16			111						156						140						127
		1,721			1,603			7,442						10,766						9,163						9,045
Net Assets	$	434,512		$	72,468		$	886,539		$			$	1,393,519		$			$	1,321,051		$			$	959,007
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	764,080		$	112,057		$	1,618,988		$	(278,208	)(a)	$	2,216,917		$	(252,692	)(a)	$	2,130,376		$	(25,516	)(a)	$	1,705,529
Undistributed net investment income		1,835			364			2,765			(2,199	)(a)		2,765			(1,835	)(a)		2,765			(364	)(a)		2,765
Accumulated net realized loss from investment securities and foreign currency transactions		(254,527	)		(25,880	)		(641,518	)		280,407	(a)		(641,518	)		254,527	(a)		(641,518	)		25,880	(a)		(641,518	)
Net unrealized depreciation on:
Investment securities		(76,876	)		(14,073	)		(93,731	)					(184,680	)					(170,607	)					(107,804	)
Translation of assets and liabilities denominated in foreign currencies		—			—			35						35						35						35
Net Assets	$	434,512		$	72,468		$	886,539		$			$	1,393,519		$			$	1,321,051		$			$	959,007
Net Assets by Class:
Class A	$			$			$	270,387		$			$	270,387		$			$	270,387		$			$	270,387
Class B								44,497						44,497						44,497						44,497
Class C								37,055						37,055						37,055						37,055
Class I								454,741			72,468	(b)		527,209						454,741			72,468	(b)		527,209
Class P											434,512	(b)		434,512			434,512	(b)		434,512						—
Class T								79,859						79,859						79,859						79,859
Investor Class		434,512									(434,512	)(b)		—			(434,512	)(b)		—						—
Institutional Class					72,468						(72,468	)(b)		—						—			(72,468	)(b)		—
Shares Outstanding:
Class A								41,383						41,383						41,383						41,383
Class B								7,298						7,298						7,298						7,298
Class C								6,054						6,054						6,054						6,054
Class I								68,414			10,897	(c)		79,311						68,414			10,897	(c)		79,311
Class P											30,219	(c)		30,219			30,219	(c)		30,219						—
Class T								4,364						4,364						4,364						4,364
Investor Class		30,219									(30,219	)(c)		—			(30,219	)(c)		—						—
Institutional Class					9,363						(9,363	)(c)		—						—			(9,363	)(c)		—
Net Asset Value and Offering Price Per Share:
Class A	$			$			$	6.54		$			$	6.54		$			$	6.54		$			$	6.54
Class B								6.10						6.10						6.10						6.10
Class C								6.13						6.13						6.13						6.13
Class I								6.65						6.65						6.65						6.65
Class P											14.38	(d)		14.38			14.38	(d)		14.38						—
Class T								18.30						18.30						18.30						18.30
Investor Class		14.38									(14.38	)(d)		—			(14.38	)(d)		—						—
Institutional Class					7.74						(7.74	)(d)		—						—			(7.74	)(d)		—
Investment Securities, at cost	$	506,077		$	85,879		$	969,233					$	1,561,189					$	1,475,310					$	1,055,112
Repurchase agreement, at cost	$	6,084		$	2,167		$	14,045					$	22,296					$	20,129					$	16,212

(a) — (j) See Note 2 of the Notes to the Pro Forma Financial Statements.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-13

Reorganizations of Transamerica Premier Equity Fund, Transamerica Premier Institutional Equity Fund and Transamerica Equity
PRO FORMA STATEMENT OF OPERATIONS
For the twelve months ended April 30, 2009
(all amounts in thousands)

																Assuming only the Transamerica Premier						Assuming only the Transamerica Premier
				Transamerica												Equity Fund Reorganization						Institutional Equity Fund Reorganization
				Premier									Combined						Combined						Combined
	Transamerica			Institutional			Transamerica						Pro Forma						Pro Forma						Pro Forma
	Premier Equity Fund			Equity Fund			Equity			Adjustments			Fund			Adjustments			Fund			Adjustments			Fund
Investment Income:
Dividend Income	$	10,433		$	1,346		$	16,490		$			$	28,269		$			$	26,923		$			$	17,836
Interest		195			39			283						517						478						322
Income from loaned securities-net		334			65			529						928						863						594
		10,962			1,450			17,302						29,714						28,264						18,752
Expenses:
Management and advisory fees		5,882			662			8,190			(963	)(e)		13,771			(938	)(e)		13,134			(111	)(e)		8,741
Printing and shareholder reports		110			9			93						212						203						102
Custody fees		84			14			150			(37	)(f)		211			(30	)(f)		204			(7	)(f)		157
Administration fees		159			20			227						406						386						247
Legal fees		34			6			36						76						70						42
Audit fees		28			23			22			(41	)(g)		32			(23	)(g)		27			(18	)(g)		27
Trustees fees		37			5			24						66						61						29
Registration fees		125			35			(13	)					147						112						22
Distribution and service fees:
Class A								1,191						1,191						1,191						1,191
Class B								716						716						716						716
Class C								541						541						541						541
Class P											1,792	(h)		1,792			1,792	(h)		1,792						—
Investor Class		1,792									(1,792	)(h)		—			(1,792	)(h)		—						—
Transfer agent fees
Class A								1,303						1,303						1,303						1,303
Class B								398						398						398						398
Class C								203						203						203						203
Class I											17	(i)		17						—			17	(i)		17
Class P											1,327	(i)		1,327			1,327	(i)		1,327			—			—
Class T								171						171						171						171
Investor Class		1,327									(1,327	)(i)		—			(1,327	)(i)		—			—			—
Institutional Class					17						(17	)(i)		—						—			(17	)(i)		—
Other		8			(4	)		99						103						107						95
Total expenses		9,586			787			13,351			(1,041	)		22,683			(991	)		21,946			(136	)		14,002
Class expense reimbursed:
Class B								(115	)		3	(j)		(112	)		3	(j)		(112	)		3	(j)		(112	)
Class P											(404	)(j)		(404	)		(404	)(j)		(404	)		—	(j)		—
Investor Class		(1,323	)								1,323	(j)		—			1,323	(j)		—				(j)		—
Institutional Class					(105	)					105	(j)		—			—			—			105	(j)		—
		(1,323	)		(105	)		(115	)		1,028			(516	)		923			(516	)		108			(112	)
Net Investment Income		2,699			768			4,066			13			7,547			68			6,834			28			4,862
Net Realized Gain (Loss) from:
Investment securities		(245,154	)		(24,932	)		(254,477	)		—			(524,563	)		—			(499,631	)					(279,409	)
		(245,154	)		(24,932	)		(254,477	)		—			(524,563	)		—			(499,631	)		—			(279,409	)
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on:
Investment securities		(354,569	)		(40,287	)		(366,565	)		—			(761,421	)		—			(721,134	)					(406,852	)
		(354,569	)		(40,287	)		(366,565	)		—			(761,421	)		—			(721,134	)		—			(406,852	)
Net Realized and Unrealized Loss		(599,723	)		(65,219	)		(621,042	)		—			(1,285,984	)		—			(1,220,765	)		—			(686,261	)
Net Decrease in Net Assets Resulting from Operations	$	(597,024	)	$	(64,451	)	$	(616,976	)	$	13		$	(1,278,437	)	$	68		$	(1,213,931	)	$	28		$	(681,399	)

(a) — (j) See Note 2 of the Notes to the Pro Forma Financial Statements.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-14

Group 4 Reorganization

Reorganization Between Transamerica Premier Focus Fund and Transamerica Legg Mason Parners All Cap
PRO FORMA SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except per share amounts in thousands)

								Transamerica Legg Mason Partners				Combined
				Transamerica Premier Focus Fund				All Cap				Pro Forma Fund
				Shares		Value		Shares		Value		Shares		Value
COMMON STOCK (87.1%)
		Aerospace & Defense
	97023105	Boeing Co.			—	$	—		17,860	$	715		17,860	$	715
	438516106	Honeywell International, Inc.			—		—		31,120		971		31,120		971
	666807102	Northrop Grumman Corp.			—		—		6,950		336		6,950		336
		Air Freight & Logistics
	12541W209	CH Robinson Worldwide, Inc.			34,500		1,833		—		—		34,500		1,833
	911312106	United Parcel Service, Inc. -Class B			—		—		26,690		1,397		26,690		1,397
		Beverages
	20441W203	Cia de Bebidas das Americas ADR			10,000		564		—		—		10,000		564
		Biotechnology
	375558103	Gilead Sciences, Inc.			16,400		751		—		—		16,400		751
		Building Products
	829073105	Simpson Manufacturing Co., Inc.			—		—		10,970		244		10,970		244
		Capital Markets
	354613101	Franklin Resources, Inc.			—		—		21,900		1,325		21,900		1,325
	2386827	Gamco Investors, Inc. -Class A			—		—		6,000		301		6,000		301
	857477103	State Street Corp.			—		—		35,290		1,204		35,290		1,204
	B64SQL4	Teton Advisors, Inc.	ə		—		—		89		—		89		—
		Chemicals
	74005P104	Praxair, Inc.			12,150		907		—		—		12,150		907
		Commercial Banks
	200340107	Comerica, Inc.			—		—		29,410		617		29,410		617
	27579R104	East-West Bancorp, Inc.			—		—		16,425		112		16,425		112
	97650W108	Wintrust Financial Corp.			35,800		609		—		—		35,800		609
		Commercial Services & Supplies
	767744105	Ritchie Bros. Auctioneers, Inc.			55,000		1,232		—		—		55,000		1,232
		Communications Equipment
	17275R102	Cisco Systems, Inc.			—		—		93,130		1,799		93,130		1,799
	315616102	F5 Networks, Inc.			23,800		649		—		—		23,800		649
	696643105	Palm, Inc.			70,000		734		—		—		70,000		734
	73172K104	Polycom, Inc.			33,400		623		—		—		33,400		623
	747525103	Qualcomm, Inc.			91,815		3,885		—		—		91,815		3,885
	294821608	Telefonaktiebolaget LM Ericsson ADR			—		—		41,970		358		41,970		358
		Computers & Peripherals
	37833100	Apple, Inc.			26,100		3,284		—		—		26,100		3,284
	459200101	International Business Machines Corp.			—		—		13,340		1,377		13,340		1,377
		Construction & Engineering
	343412102	Fluor Corp.			—		—		14,320		542		14,320		542
	469814107	Jacobs Engineering Group, Inc.			—		—		6,850		261		6,850		261
	713839108	Perini Corp.			—		—		9,530		165		9,530		165
		Diversified Consumer Services
	863236105	Strayer Education, Inc.			15,535		2,942		—		—		15,535		2,942
		Diversified Financial Services
	60505104	Bank of America Corp.			—		—		146,380		1,307		146,380		1,307
	46625H100	JPMorgan Chase & Co.			65,750		2,170		65,190		2,151		130,940		4,321
		Electronic Equipment & Instruments
	302445101	FLIR Systems, Inc.			39,000		865		—		—		39,000		865
	465741106	Itron, Inc.			12,120		558		—		—		12,120		558
		Energy Equipment & Services
	57224107	Baker Hughes, Inc.			—		—		27,250		970		27,250		970
	406216101	Halliburton Co.			—		—		46,940		949		46,940		949
	806857108	Schlumberger, Ltd.			—		—		24,490		1,200		24,490		1,200
	B3KFWW1	Transocean, Ltd.			—		—		5,926		400		5,926		400
	B5KL6S7	Weatherford International, Ltd.			—		—		46,550		774		46,550		774
		Food & Staples Retailing
	931142103	Wal-Mart Stores, Inc.			—		—		28,460		1,434		28,460		1,434
		Food Products
	B10RZP7	Unilever PLC			—		—		41,575		816		41,575		816
	904767704	Unilever PLC ADR			—		—		34,949		680		34,949		680
		Health Care Equipment & Supplies
	B1YR434	Covidien, Ltd.			48,500		1,600		—		—		48,500		1,600
		Health Care Providers & Services
	58155Q103	McKesson Corp.			—		—		19,870		735		19,870		735
	65411N105	Nighthawk Radiology Holdings, Inc.			158,930		567		—		—		158,930		567
		Hotels, Restaurants & Leisure
	143658300	Carnival Corp.			—		—		23,200		624		23,200		624
	571903202	Marriott International, Inc. -Class A			—		—		8,700		205		8,700		205
	705560100	Peet’s Coffee & Tea, Inc.			34,000		928		—		—		34,000		928
		Household Durables
	889478103	Toll Brothers, Inc.			—		—		33,600		681		33,600		681
		Industrial Conglomerates
	369604103	General Electric Co.			—		—		60,460		765		60,460		765
	580037109	McDermott International, Inc.			—		—		81,380		1,313		81,380		1,313
		Insurance
	B18S7H8	Allied World Assurance Co. Holdings, Ltd.			—		—		16,380		608		16,380		608
	171232101	Chubb Corp.			—		—		36,150		1,408		36,150		1,408
		Internet & Catalog Retail
	23135106	Amazon.com, Inc.			37,105		2,987		—		—		37,105		2,987
	741503403	priceline.com, Inc.			7,300		709		—		—		7,300		709
		Internet Software & Services
	278642103	eBay, Inc.			—		—		59,630		982		59,630		982
	38259P508	Google, Inc. -Class A			6,900		2,731		—		—		6,900		2,731
	92046N102	Valueclick, Inc.			52,045		552		—		—		52,045		552
		Leisure Equipment & Products
	418056107	Hasbro, Inc.			28,500		760		—		—		28,500		760

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-15

								Transamerica Legg Mason Partners					Combined
			Transamerica Premier Focus Fund					All Cap					Pro Forma Fund
			Shares		Value			Shares		Value			Shares		Value
	Life Sciences Tools & Services
294100102	ENZO Biochem, Inc.			—		—			133,887		549			133,887		549
	Machinery
260003108	Dover Corp.			—		—			21,550		663			21,550		663
693718108	PACCAR, Inc.			26,400		936			17,200		610			43,600		1,546
701094104	Parker Hannifin Corp.			—		—			9,700		440			9,700		440
	Media
254687106	Walt Disney Co.			—		—			69,520		1,522			69,520		1,522
	Metals & Mining
88606108	BHP Billiton, Ltd. ADR			—		—			3,200		154			3,200		154
670346105	Nucor Corp.			—		—			7,440		303			7,440		303
	Oil, Gas & Consumable Fuels
32511107	Anadarko Petroleum Corp.			—		—			23,250		1,001			23,250		1,001
166764100	Chevron Corp.			—		—			8,460		559			8,460		559
20825C104	ConocoPhillips			—		—			7,040		289			7,040		289
30231G102	Exxon Mobil Corp.			—		—			10,570		705			10,570		705
626717102	Murphy Oil Corp.			—		—			3,250		155			3,250		155
71654V101	Petroleo Brasileiro SA -Class A ADR			29,300		791			—		—			29,300		791
71654V408	Petroleo Brasileiro SA ADR			20,600		692			—		—			20,600		692
	Paper & Forest Products
962166104	Weyerhaeuser Co.			—		—			19,210		677			19,210		677
	Pharmaceuticals
2824100	Abbott Laboratories			—		—			31,990		1,339			31,990		1,339
18490102	Allergan, Inc.			30,300		1,414			—		—			30,300		1,414
478160104	Johnson & Johnson			—		—			27,780		1,455			27,780		1,455
589331107	Merck & Co., Inc.			—		—			51,068		1,238			51,068		1,238
66987V109	Novartis AG ADR			—		—			38,270		1,451			38,270		1,451
	Professional Services
770323103	Robert Half International, Inc.			—		—			8,420		202			8,420		202
	Real Estate Investment Trusts
44107P104	Host Hotels & Resorts, Inc.			150,406		1,157			13,350		103			163,756		1,260
517942108	LaSalle Hotel Properties			—		—			18,130		217			18,130		217
	Road & Rail
485170302	Kansas City Southern			29,660		452			—		—			29,660		452
515098101	Landstar System, Inc.			29,420		1,047			—		—			29,420		1,047
	Semiconductors & Semiconductor Equipment
38222105	Applied Materials, Inc.			—		—			159,960		1,953			159,960		1,953
670008101	Novellus Systems, Inc.			—		—			52,930		956			52,930		956
B01D632	Samsung Electronics Co., Ltd. GDR	-144A		—		—			13,300		3,019			13,300		3,019
874039100	Taiwan Semiconductor Manufacturing Co., Ltd. ADR			—		—			133,457		1,411			133,457		1,411
882508104	Texas Instruments, Inc.			—		—			86,000		1,553			86,000		1,553
922207105	Varian Semiconductor Equipment Associates, Inc.			—		—			6,070		155			6,070		155
B170G56	Verigy, Ltd.			—		—			9,211		101			9,211		101
	Software
177376100	Citrix Systems, Inc.			—		—			14,710		420			14,710		420
45666Q102	Informatica Corp.			86,800		1,380			—		—			86,800		1,380
52078P102	Lawson Software, Inc.			—		—			74,960		404			74,960		404
55611C108	Macrovision Solutions Corp.			40,120		811			—		—			40,120		811
594918104	Microsoft Corp.			—		—			73,410		1,487			73,410		1,487
	Specialty Retail
364760108	Gap, Inc.			—		—			49,070		763			49,070		763
437076102	Home Depot, Inc.			—		—			71,370		1,878			71,370		1,878
70959W103	Penske Auto Group, Inc.			—		—			20,450		271			20,450		271
969904101	Williams-Sonoma, Inc.			—		—			22,840		320			22,840		320
	Textiles, Apparel & Luxury Goods
654106103	Nike, Inc. -Class B			18,700		981			—		—			18,700		981
	Wireless Telecommunication Services
852061100	Sprint Nextel Corp.			330,000		1,439			—		—			330,000		1,439
92857W209	Vodafone Group PLC ADR			—		—			72,007		1,321			72,007		1,321
						43,540					59,370					102,910
			Total Cost $ (43,873				)	Total Cost $ (71,592				)	Total Cost $ (115,465				)

			Principal		Value			Principal		Value			Principal		Value
REPURCHASE AGREEMENT (13.3%)
	85799F003	State Street Repurchase Agreement	$	12,067	$	12,067		$	3,667	$	3,667		$	15,734	$	15,734
		0.01%, dated 04/30/09, to be repurchased				12,067					3,667					15,734
		at $15,734 on 05/01/2009	Total Cost $ (12,067				)	Total Cost $ (3,668				)	Total Cost $ (15,734				)
		Total Investment Securities Cost				55,940					72,560					131,199
		Total Investment Securities Value				55,607					63,037					118,644
		Other Assets and Liabilities, net				(1	)				(561	)				(562	)
		Net Assets			$	55,606				$	62,476				$	118,082

ə	Securities fair valued as determined in good faith in accordance with procedures established by the Board of Trustees.
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 04/30/2009, these securities aggregated to $3,019, or 2.56%, of the Fund’s net assets.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-16

Reorganization Between Transamerica Premier Focus Fund and Transamerica Legg Mason Partners All Cap
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2009
(all amounts except per share amounts in thousands)

	Transamerica			Transamerica Legg
	Premier Focus			Mason Partners All						Combined
	Fund			Cap			Adjustments			Pro Forma Fund
Assets:
Investment securities, at value	$	43,540		$	59,370		$			$	102,910
Repurchase agreement, at value		12,067			3,667						15,734
Receivables:
Investment securities sold		—			82						82
Shares sold		3			23						26
Dividends		50			44						94
Dividend reclaims		1			26						27
Other		—			28						28
		55,661			63,240			—			118,901
Liabilities:
Accounts payable and accrued liabilities:
Investment securities purchased		—			570						570
Shares redeemed		—			47						47
Management and advisory fees		24			36						60
Distribution and service fees		11			36						47
Administration fees		1			1						2
Trustees fees		—			28						28
Transfer agent fees		11			26						37
Other		8			20						28
		55			764						819
Net Assets	$	55,606		$	62,476		$			$	118,082
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	67,584		$	82,354		$	(7,642)	(a)	$	142,296
Undistributed net investment income		(498	)		164			(164)	(a)		(498	)
Accumulated net realized loss from investment securities and foreign currency transactions		(11,147	)		(7,806	)		7,806	(a)		(11,147	)
Net unrealized depreciation on:
Investment securities		(333	)		(12,236	)					(12,569	)
Net Assets	$	55,606		$	62,476		$	0		$	118,082
Net Assets by Class:
Class A	$	—		$	26,916		$			$	26,916
Class B		—			23,173						23,173
Class C		—			12,387						12,387
Class P		—			—			55,606	(b)		55,606
Investor Class		55,606			—			(55,606)	(b)		—
Shares Outstanding:
Class A		—			2,964						2,964
Class B		—			2,733						2,733
Class C		—			1,463						1,463
Class P		—			—			3,777	(c)		3,777
Investor Class		3,777			—			(3,777)	(c)		—
Net Asset Value and Offering Price Per Share:
Class A	$	—		$	9.08		$			$	9.08
Class B		—			8.48						8.48
Class C		—			8.47						8.47
Class P		—			—			14.72	(d)		14.72
Investor Class		14.72			—			(14.72)	(d)		—
Investment Securities, at cost	$	43,873		$	71,593					$	115,466
Repurchase agreement, at cost	$	12,067		$	3,667					$	15,734

(a) - (j)  See Note 2 of the Notes to the Pro Forma Financial Statements.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-17

Reorganization Between Transamerica Premier Focus Fund and Transamerica Legg Mason Parners All Cap
PRO FORMA STATEMENT OF OPERATIONS
For the twelve months ended April 30, 2009
(all amounts in thousands)

	Transamerica			Transamerica						Combined
	Premier Focus			Legg Mason						Pro Forma
	Fund			Parners All Cap			Adjustments			Fund
Investment Income:
Dividend Income	$	453		$	2,282		$			$	2,735
Withholding taxes on foreign dividends		(6	)		(48	)					(54	)
Interest		45			16						61
Income from loaned securities-net		73			77						150
		565			2,327						2,892
Expenses:
Management and advisory fees		531			691			(28)	(e)		1,194
Printing and shareholder reports		9			(1	)					8
Custody fees		10			31			(25)	(f)		16
Administration fees		14			18						32
Legal fees		3			2						5
Audit fees		23			20			(15)	(g)		28
Trustees fees		3			2						5
Registration fees		28			(10	)					18
Distribution and service fees:
Class A					108						108
Class B					381						381
Class C					172						172
Class P								156	(h)		156
Investor Class		156						(156)	(h)		—
Transfer agent fees
Class A					138						138
Class B					171						171
Class C					56						56
Class P								140	(i)		140
Investor Class		140						(140)	(i)		—
Other		(5	)		30						25
Total expenses		912			1,809			(68	)		2,653
Class expense reimbursed:
Class A					(44	)		4	(j)		(41	)
Class B					(57	)		4	(j)		(53	)
Class C					(4	)		2	(j)		(2	)
Class P
Investor Class		(36	)					36	(j)		—
Total reimbursement of expenses		(36	)		(106	)		46			(96	)
Net Investment Income		(311	)		624			22			335
Net Realized Gain (Loss) from:
Investment securities		(13,155	)		(11,732	)					(24,887	)
		(13,155	)		(11,732	)					(24,887	)
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on:
Investment securities		(29,262	)		(32,355	)					(61,617	)
		(29,262	)		(32,355	)					(61,617	)
Net Realized and Unrealized Loss		(42,417	)		(44,087	)					(86,504	)
Net Decrease in Net Assets Resulting from Operations	$	(42,728	)	$	(43,463	)	$	22		$	(86,169	)

(a) - (j)	See Note 2 of the Notes to the Pro Forma Financial Statements.
THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-18

Group 5 Reorganization

Reorganization Between Transamerica Premier Growth Opportunities Fund and Transamerica Growth Opportunities
PRO FORMA SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except per share amounts in thousands)

	Transamerica Premier Growth								Combined
	Opportunities Fund				Transamerica Growth Opportunities				Pro Forma Fund
	Shares		Value		Shares		Value		Shares		Value
COMMON STOCK (95.3%)
Aerospace & Defense
Precision Castparts Corp.		41,000	$	3,069		77,300	$	5,787		118,300	$	8,856
Rockwell Collins, Inc.		10,900		418		21,500		825		32,400		1,243
Air Freight & Logistics
CH Robinson Worldwide, Inc.		60,900		3,237		116,900		6,214		177,800		9,451
Auto Components
BorgWarner, Inc.		104,600		3,028		196,200		5,680		300,800		8,708
Johnson Controls, Inc.		49,900		949		98,100		1,865		148,000		2,814
Capital Markets
Greenhill & Co., Inc.		33,895		2,628		68,070		5,277		101,965		7,905
T. Rowe Price Group, Inc.		70,557		2,718		143,430		5,525		213,987		8,243
Chemicals
Ecolab, Inc.		35,800		1,380		70,700		2,725		106,500		4,105
Communications Equipment
Juniper Networks, Inc.		49,600		1,074		97,400		2,109		147,000		3,183
Polycom, Inc.		109,000		2,032		212,400		3,959		321,400		5,991
Computers & Peripherals
Data Domain, Inc.		23,445		389		46,050		764		69,495		1,153
Construction & Engineering
Jacobs Engineering Group, Inc.		25,700		978		49,300		1,875		75,000		2,853
Construction Materials
Martin Marietta Materials, Inc.		12,200		1,025		27,200		2,286		39,400		3,311
Diversified Consumer Services
Strayer Education, Inc.		9,100		1,724		17,100		3,239		26,200		4,963
Electrical Equipment
Cooper Industries, Ltd. -Class A		49,000		1,607		93,500		3,066		142,500		4,673
Electronic Equipment & Instruments
FLIR Systems, Inc.		63,000		1,397		123,000		2,728		186,000		4,125
Health Care Equipment & Supplies
Idexx Laboratories, Inc.		33,000		1,297		64,300		2,527		97,300		3,824
Intuitive Surgical, Inc.		8,250		1,186		15,900		2,285		24,150		3,471
Varian Medical Systems, Inc.		10,600		354		20,400		681		31,000		1,035
Health Care Technology
Cerner Corp.		17,800		958		34,600		1,861		52,400		2,819
Hotels, Restaurants & Leisure
Burger King Holdings, Inc.		53,900		881		105,010		1,716		158,910		2,597
Internet & Catalog Retail
priceline.com, Inc.		9,930		964		19,310		1,875		29,240		2,839

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-19

	Transamerica Premier Growth										Combined
	Opportunities Fund					Transamerica Growth Opportunities					Pro Forma Fund
	Shares		Value			Shares		Value			Shares		Value
Leisure Equipment & Products
Hasbro, Inc.		65,200		1,738			123,000		3,279			188,200		5,017
Life Sciences Tools & Services
Covance, Inc.		23,700		931			44,600		1,752			68,300		2,683
Techne Corp.		31,100		1,780			59,900		3,427			91,000		5,207
Machinery
Donaldson Co., Inc.		40,700		1,343			80,100		2,642			120,800		3,985
Kennametal, Inc.		128,100		2,620			246,300		5,037			374,400		7,657
PACCAR, Inc.		86,500		3,065			174,900		6,198			261,400		9,263
Multiline Retail
Nordstrom, Inc.		22,420		507			44,040		997			66,460		1,504
Oil, Gas & Consumable Fuels
Range Resources Corp.		17,100		683			33,100		1,323			50,200		2,006
Pharmaceuticals
Allergan, Inc.		47,100		2,198			89,000		4,153			136,100		6,351
Professional Services
FTI Consulting, Inc.		26,000		1,427			50,000		2,744			76,000		4,171
Real Estate Investment Trusts
Plum Creek Timber Co., Inc.		83,200		2,872			152,300		5,257			235,500		8,129
Real Estate Management & Development
St. Joe Co.		43,900		1,092			85,500		2,127			129,400		3,219
Software
Activision Blizzard, Inc.		244,500		2,633			473,300		5,097			717,800		7,730
Adobe Systems, Inc.		100,300		2,743			196,825		5,383			297,125		8,126
Informatica Corp.		97,500		1,550			190,100		3,023			287,600		4,573
Intuit, Inc.		105,700		2,444			204,000		4,719			309,700		7,163
Macrovision Solutions Corp.		32,000		647			60,900		1,231			92,900		1,878
Quality Systems, Inc.		16,000		858			30,100		1,614			46,100		2,472
Salesforce.com, Inc.		54,300		2,325			103,900		4,448			158,200		6,773
Specialty Retail
Gap, Inc.		126,900		1,972			241,595		3,754			368,495		5,726
Guess, Inc.		124,400		3,238			235,200		6,125			359,600		9,363
Textiles, Apparel & Luxury Goods
Carter’s, Inc.		73,600		1,574			148,500		3,175			222,100		4,749
Under Armour, Inc. -Class A		16,380		386			32,100		756			48,480		1,142
Trading Companies & Distributors
WW Grainger, Inc.		44,422		3,726			84,700		7,105			129,122		10,831
				77,645					150,235					227,880
	Total Cost $ (83,283)					Total Cost $ (165,336)					Total Cost $ (248,619)
	Principal		Value			Principal		Value			Principal		Value
REPURCHASE AGREEMENT (5.7%)
State Street Repurchase Agreement	$	4,017		4,017		$	9,526		9,526		$	13,543		13,543
0.01%, dated 04/30/09, to be repurchased				4,017					9,526					13,543
at $13,543 on 05/01/2009	Total Cost $ (4,017)					Total Cost $ (9,526)					Total Cost $ (13,543)
Total Investment Securities Cost				87,300					174,862					262,162
Total Investment Securities Value				81,662					159,761					241,423
Other Assets and Liabilities, net				(715	)				(1,654	)				(2,369	)
Net Assets			$	80,947				$	158,107				$	239,054

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-20

Reorganization Between Transamerica Premier Growth Opportunities Fund and Transamerica Growth Opportunities Fund
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2009
(all amounts except per share amounts in thousands)

	Transamerica
	Premier Growth			Transamerica
	Opportunities			Growth								Combined
	Fund			Opportunities Fund			Adjustments					Pro Forma Fund
Assets:
Investment securities, at value	$	77,645		$	150,235		$					$	227,880
Repurchase agreement, at value		4,017			9,526								13,543
Receivables:
Investment securities sold		527			887								1,414
Shares sold		—			26								26
Income from loaned securities		1			—								1
Dividends		13			25								38
Other		—			18								18
		82,203			160,717								242,920
Liabilities:
Accounts payable and accrued liabilities:
Investment securities purchased		1,180			2,377								3,557
Shares redeemed		1			30								31
Management and advisory fees		28			77								105
Distribution and service fees		16			32								48
Administration fees		2			2								4
Trustees fees		—			19								19
Transfer agent fees		18			47								65
Other		11			26								37
		1,256			2,610								3,866
Net Assets	$	80,947		$	158,107		$					$	239,054
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	107,525		$	321,268		$	(20,940	)	(a	)	$	407,853
Undistributed net investment income		(600	)		67			600		(a	)		67
Accumulated net realized loss from investment securities and foreign currency transactions		(20,340	)		(148,119	)		20,340		(a	)		(148,119	)
Net unrealized depreciation on:
Investment securities		(5,638	)		(15,109	)							(20,747	)
Net Assets	$	80,947		$	158,107		$					$	239,054
Net Assets by Class:
Class A	$			$	42,498		$					$	42,498
Class B					16,006								16,006
Class C					9,815								9,815
Class I					89,788								89,788
Class P								80,947		(b	)		80,947
Investor Class		80,947						(80,947	)	(b	)		—
Shares Outstanding:
Class A					6,448								6,448
Class B					2,611								2,611
Class C					1,595								1,595
Class I					13,236								13,236
Class P								4,595		(c	)		4,595
Investor Class		4,595						(4,595	)	(c	)		—
Net Asset Value and Offering Price Per Share:
Class A	$			$	6.59		$					$	6.59
Class B					6.13								6.13
Class C					6.16								6.16
Class I					6.78								6.78
Class P								17.61		(d	)		17.61
Investor Class		17.61						(17.61	)	(d	)		—
Investment Securities, at cost	$	83,283		$	165,336							$	248,619
Repurchase agreement, at cost	$	4,017		$	9,526							$	13,543

(a) - (j) See Note 2 of the Notes to the Pro Forma Financial Statements.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-21

Reorganization Between Transamerica Premier Growth Opportunities Fund and Transamerica Growth Opportunities

PRO FORMA STATEMENT OF OPERATIONS

For the twelve months ended April 30, 2009

(all amounts in thousands)

	Transamerica			Transamerica								Combined
	Premier Growth			Growth								Pro Forma
	Opportunities Fund			Opportunities			Adjustments					Fund
Investment Income:
Dividend Income	$	825		$	1,647		$					$	2,472
Withholding taxes on foreign dividends		(2	)		(3	)							(5	)
Interest		34			66								100
Income from loaned securities-net		185			709								894
		1,042			2,419								3,461
Expenses:
Management and advisory fees		805			1,504			(57	)	(e	)		2,252
Printing and shareholder reports		14			2								16
Custody fees		15			31			(8	)	(f	)		38
Administration fees		22			38								60
Legal fees		5			5								10
Audit fees		24			19			(19	)	(g	)		24
Trustees fees		4			3								7
Registration fees		29			(12	)							17
Distribution and service fees:
Class A					159								159
Class B					243								243
Class C					120								120
Class P								237		(h	)		237
Investor Class		237						(237	)	(h	)		—
Transfer agent fees
Class A					374								374
Class B					183								183
Class C					75								75
Class P								242		(i	)		242
Investor Class		242			—			(242	)	(i	)		—
Other		(4	)		39								35
Total expenses		1,393			2,783			(84	)				4,092
Class expense reimbursed:
Class A					(131	)		(2	)	(j	)		(133	)
Class B					(52	)		(1	)	(j	)		(53	)
Class C					(9	)							(9	)
Class P
Investor Class		(64	)		—			64		(j	)		—
Total reimbursement of expenses		(64	)		(192	)		61					(195	)
Net Investment Income		(287	)		(172	)		23					(436	)
Net Realized Gain (Loss) from:
Investment securities		(20,818	)		(38,368	)							(59,186	)
		(20,818	)		(38,368	)							(59,186	)
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on:
Investment securities		(41,047	)		(35,164	)							(76,211	)
		(41,047	)		(35,164	)							(76,211	)
Net Realized and Unrealized Loss		(61,865	)		(73,532	)							(135,397	)
Net Decrease in Net Assets Resulting from Operations	$	(62,152	)	$	(73,704	)	$	23				$	(135,833	)

(a) - (j) See Note 2 of the Notes to the Pro Forma Financial Statements.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-22

Group 6 Reorganization

Reorganization Between Transamerica Convertible Securities and Transamerica Flexible Income
PRO FORMA SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except per share amounts in thousands)

			Transamerica Convertible								Combined
			Securities				Transamerica Flexible Income				Pro Forma Fund
			Shares		Value		Shares		Value		Shares		Value
CONVERTIBLE PREFERRED STOCK (2.3%)
Diversified Financial Services
Vale Capital, Ltd., 5.50%				60,900	$	2,132		—	$	—		60,900	$	2,132
Pharmaceuticals
Mylan, Inc., 6.50%				2,055		1,751		—		—		2,055		1,751
Road & Rail
Kansas City Southern, 5.13%				—		—		880		564		880		564
						3,883				564				4,447
			Total Cost $ (3,536)				Total Cost $ (751)				Total Cost $ (4,287)
PREFERRED STOCK (1.4%)
Commercial Services & Supplies
Avery Dennison Corp., 7.88%				52,000		1,586		—		—		52,000		1,586
Diversified Telecommunication Services
Centaur Funding Corp., 9.08%		-144A		—		—		1,661		1,033		1,661		1,033
						1,586				1,033				2,619
			Total Cost $ (1,674)				Total Cost $ (2,153)				Total Cost $ (3,827)
REVERSE CONVERTIBLE BOND (1.4%)
Capital Markets
Goldman Sachs Group, Inc.		-144A		162,000		2,579		—		—		162,000		2,579
						2,579				—				2,579
			Total Cost $ (2,603)				Total Cost $ (0)				Total Cost $ (2,603)
			Principal		Value		Principal		Value		Principal		Value
U.S. GOVERNMENT AGENCY OBLIGATION (10.9%)
Fannie Mae, 4.50%, 07/25/2021			$	—		—	$	2,678		2,727	$	2,678		2,727
Fannie Mae, 5.00%, 06/25/2019				—		—		2,060		2,150		2,060		2,150
Fannie Mae, 5.00%, 09/01/2037				—		—		2,661		2,740		2,661		2,740
Fannie Mae, 5.00%, 03/01/2039				—		—		3,593		3,699		3,593		3,699
Fannie Mae, 5.50%, 07/01/2038				—		—		4,878		5,060		4,878		5,060
Fannie Mae, 5.50%, 11/01/2038				—		—		4,142		4,295		4,142		4,295
						—				20,671				20,671
			Total Cost $ (0)				Total Cost $ (20,196)				Total Cost $ (20,196)
U.S. GOVERNMENT OBLIGATION (1.5%)
U.S. Treasury Inflation Indexed Bond, 1.75%, 01/15/2028				—		—		1,415		1,272		1,415		1,272
U.S. Treasury Note, 1.75%, 03/31/2014				—		—		1,015		1,004		1,015		1,004
U.S. Treasury Note, 2.75%, 02/15/2019				—		—		586		568		586		568
						—				2,844				2,844
			Total Cost $ (0)				Total Cost $ (2,910)				Total Cost $ (2,910)
FOREIGN GOVERNMENT OBLIGATION (2.5%)
France Government Bond, 4.00%, 04/25/2018	EUR			—		—		3,500		4,801		3,500		4,801
						—				4,801				4,801
			Total Cost $ (0)				Total Cost $ (4,461)				Total Cost $ (4,461)
MORTGAGE-BACKED SECURITY (3.5%)
American Tower Trust, Series 2007-1A ,Class C, 5.62%, 04/15/2037		-144A		—	$	—		2,090	$	1,766		2,090	$	1,766
Crown Castle Towers LLC, Series 2006-1A ,Class C, 5.47%, 11/15/2036		-144A		—		—		2,000		1,810		2,000		1,810
Small Business Administration Trust, Series 2006-1A ,Class D, 5.85%, 11/15/2036		-144A		—		—		2,054		1,849		2,054		1,849
Small Business Administration Trust, Series 2006-1A ,Class E, 6.17%, 11/15/2036		-144A		—		—		1,460		1,299		1,460		1,299
						—				6,724				6,724
			Total Cost $ (0)				Total Cost $ (7,610)				Total Cost $ (7,610)
CONVERTIBLE BOND (27.0%)
Aerospace & Defense
Alliant Techsystems, Inc., 2.75%, 02/15/2024				1,575		1,660		—		—		1,575		1,660
Auto Components
Johnson Controls, Inc., 6.50%, 09/30/2012				—		—		775		1,396		775		1,396
Beverages
Molson Coors Brewing Co., 2.50%, 07/30/2013				1,925		2,043		—		—		1,925		2,043
Biotechnology
Gilead Sciences, Inc., 0.63%, 05/01/2013				1,450		1,867		—		—		1,450		1,867
Commercial Services & Supplies
Covanta Holding Corp., 1.00%, 02/01/2027				2,350		1,918		—		—		2,350		1,918
Communications Equipment
Ciena Corp., 0.88%, 06/15/2017				2,250		1,148		—		—		2,250		1,148
Computers & Peripherals
Maxtor Corp., 6.80%, 04/30/2010				1,950		1,921		—		—		1,950		1,921
Construction & Engineering
Quanta Services, Inc., 3.75%, 04/30/2026				1,075		1,226		—		—		1,075		1,226
Containers & Packaging
Sealed Air Corp., 3.00%, 06/30/2033		-144A		1,675		1,581		500		472		2,175		2,053
Diversified Telecommunication Services
Global Crossing, Ltd., 5.00%, 05/15/2011				745		484		—		—		745		484
Lucent Technologies, Inc., 2.88%, 06/15/2023				2,050		1,883		1,350		1,240		3,400		3,123
Electronic Equipment & Instruments
Itron, Inc., 2.50%, 08/01/2026				2,137		2,164		—		—		2,137		2,164
Energy Equipment & Services
Transocean, Inc., 1.63%, 12/15/2037				2,005		1,867		—		—		2,005		1,867
Health Care Equipment & Supplies
NuVasive, Inc., 2.25%, 03/15/2013		-144A		1,578		1,608		—		—		1,578		1,608
Industrial Conglomerates
Textron, Inc., 4.50%, 05/01/2013				1,750		1,892		—		—		1,750		1,892
Internet Software & Services
Equinix, Inc., 3.00%, 10/15/2014				1,525		1,252		—		—		1,525		1,252
Leisure Equipment & Products
Hasbro, Inc., 2.75%, 12/01/2021				1,650		2,141		—		—		1,650		2,141
Machinery
Danaher Corp., 0.01%, 01/22/2021				2,120		1,903		—		—		2,120		1,903
Metals & Mining
ArcelorMittal, 5.00%, 05/15/2014				640		661		—		—		640		661
Newmont Mining Corp., 1.25%, 07/15/2014				1,375		1,539		—		—		1,375		1,539
U.S. Steel Corp., 4.00%, 05/15/2014				3,100		3,099		—		—		3,100		3,099
Oil, Gas & Consumable Fuels
Quicksilver Resources, Inc., 1.88%, 11/01/2024				940		807		—		—		940		807
Pharmaceuticals
Allergan, Inc., 1.50%, 04/01/2026				2,505		2,558		—		—		2,505		2,558
Sepracor, Inc., 0.01%, 12/15/2010				1,525		1,331		—		—		1,525		1,331
Software
Nuance Communications, Inc., 2.75%, 08/15/2027				2,710		2,439		—		—		2,710		2,439
Symantec Corp., 0.75%, 06/15/2011				1,860		1,979		775		824		2,635		2,803
Wireless Telecommunication Services
Nextel Communications, Inc., 5.25%, 01/15/2010				1,920		1,884		—		—		1,920		1,884
SBA Communications Corp., 1.88%, 05/01/2013		-144A		3,000		2,520		—		—		3,000		2,520
						47,375				3,932				51,307
			Total Cost $ (49,484)				Total Cost $ (3,391)				Total Cost $ (52,875)

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

S-23

		Transamerica Convertible								Combined
		Securities				Transamerica Flexible Income				Pro Forma Fund
		Principal		Value		Principal		Value		Principal		Value
CORPORATE DEBT SECURITY (42.6%)
Auto Components
Johnson Controls, Inc., 5.25%, 01/15/2011			—		—		1,565		1,540		1,565		1,540
Tenneco, Inc., 8.13%, 11/15/2015			—		—		1,180		472		1,180		472
Automobiles
Daimler Finance North America LLC, 8.00%, 06/15/2010			—		—		1,360		1,392		1,360		1,392
Beverages
Anheuser-Busch InBev Worldwide, Inc., 8.20%, 01/15/2039	-144A		—		—		1,000		1,002		1,000		1,002
Bacardi, Ltd., 7.45%, 04/01/2014	-144A		—		—		525		532		525		532
Capital Markets
Xstrata Finance Dubai, Ltd., 1.27%, 11/13/2009	-144A		—		—		1,095		1,075		1,095		1,075
Chemicals
Dow Chemical Co., 6.13%, 02/01/2011			—		—		1,115		1,114		1,115		1,114
Lubrizol Corp., 8.88%, 02/01/2019			—		—		1,300		1,410		1,300		1,410
Momentive Performance Materials, Inc., 9.75%, 12/01/2014			—		—		1,005		344		1,005		344
Nalco Co., 7.75%, 11/15/2011			—		—		1,000		1,010		1,000		1,010
Commercial Banks
Barclays Bank PLC, 7.70%, 04/25/2018	-144A		—		—		1,850		1,166		1,850		1,166
BB&T Corp., 6.85%, 04/30/2019			—		—		1,190		1,159		1,190		1,159
M&I Marshall & Ilsley Bank, 1.54%, 12/04/2012			—		—		2,000		1,431		2,000		1,431
Construction Materials
CRH America, Inc., 5.30%, 10/15/2013			—		—		1,140		959		1,140		959
Lafarge SA, 6.15%, 07/15/2011			—		—		1,880		1,828		1,880		1,828
Martin Marietta Materials, Inc., 1.19%, 04/30/2010			—		—		1,340		1,281		1,340		1,281
Consumer Finance
Cardtronics, Inc., 9.25%, 08/15/2013			—		—		835		605		835		605
Discover Financial Services, 1.86%, 06/11/2010			—		—		1,130		996		1,130		996
Containers & Packaging
Rexam PLC, 6.75%, 06/01/2013	-144A		—		—		2,365		2,149		2,365		2,149
Diversified Financial Services
Bank of America Corp., 5.75%, 12/01/2017			—		—		2,200		1,797		2,200		1,797
Bank of America Corp., 8.00%, 01/30/2018			—		—		2,250		1,278		2,250		1,278
Bear Stearns Cos., Inc., 7.25%, 02/01/2018			—		—		2,000		2,042		2,000		2,042
General Electric Capital Corp., 6.88%, 01/10/2039			—		—		2,000		1,567		2,000		1,567
Glencore Funding LLC, 6.00%, 04/15/2014	-144A		—		—		2,000		1,230		2,000		1,230
GMAC LLC, 6.88%, 09/15/2011	-144A		—		—		750		653		750		653
JPMorgan Chase & Co., 7.90%, 04/30/2018			—		—		1,750		1,331		1,750		1,331
Pemex Finance, Ltd., 9.03%, 02/15/2011			—		—		2,540		2,629		2,540		2,629
Sensus Metering Systems, Inc., 8.63%, 12/15/2013			—		—		500		425		500		425
Diversified Telecommunication Services
Sprint Capital Corp., 7.63%, 01/30/2011			—		—		1,300		1,253		1,300		1,253
Energy Equipment & Services
DCP Midstream LLC, 9.75%, 03/15/2019	-144A		—		—		725		719		725		719
Weatherford International, Ltd., 9.63%, 03/01/2019			—		—		1,500		1,619		1,500		1,619
Food & Staples Retailing
Stater Brothers Holdings, Inc., 8.13%, 06/15/2012			—		—		1,000		988		1,000		988
Food Products
ConAgra Foods, Inc., 9.75%, 03/01/2021			—		—		325		388		325		388
Michael Foods, Inc., 8.00%, 11/15/2013			—		—		1,575		1,488		1,575		1,488
Hotels, Restaurants & Leisure
Carrols Corp., 9.00%, 01/15/2013			—		—		500		463		500		463
MGM Mirage, Inc., 6.00%, 10/01/2009			—		—		1,000		840		1,000		840
Pokagon Gaming Authority, 10.38%, 06/15/2014	-144A		—		—		650		601		650		601
Station Casinos, Inc., 6.88%, 03/01/2016			—		—		700		23		700		23
Yum! Brands, Inc., 8.88%, 04/15/2011			—		—		920		988		920		988
Household Durables
Whirlpool Corp., 8.00%, 05/01/2012			—		—		1,265		1,287		1,265		1,287
Household Products
Sealy Mattress Co., 8.25%, 06/15/2014			—		—		250		166		250		166
Industrial Conglomerates
Susser Holdings LLC, 10.63%, 12/15/2013			—		—		582		588		582		588
Insurance
MetLife, Inc., 7.72%, 02/15/2019			—		—		1,750		1,755		1,750		1,755
Oil Insurance, Ltd., 7.56%, 06/30/2011	-144A		—		—		2,245		735		2,245		735
IT Services
Aramark Corp., 8.50%, 02/01/2015			—		—		500		478		500		478
Machinery
PACCAR, Inc., 6.88%, 02/15/2014			—		—		1,750		1,832		1,750		1,832
Polypore, Inc., 8.75%, 05/15/2012			—		—		550		426		550		426
Titan International, Inc., 8.00%, 01/15/2012			—		—		1,200		960		1,200		960
Media
Comcast Cable Holdings LLC, 9.80%, 02/01/2012			—		—		2,000		2,156		2,000		2,156
Metals & Mining
Anglo American Capital PLC, 9.38%, 04/08/2019	-144A		—		—		1,240		1,262		1,240		1,262
ArcelorMittal, 5.38%, 06/01/2013			—		—		750		675		750		675
Falconbridge, Ltd., 7.35%, 06/05/2012			—		—		645		569		645		569
Rio Tinto Finance USA, Ltd., 9.00%, 05/01/2019			—		—		1,165		1,198		1,165		1,198
Multiline Retail
Macy’s Retail Holdings, Inc., 5.35%, 03/15/2012			—		—		1,480		1,351		1,480		1,351
Multi-Utilities
Sempra Energy, 9.80%, 02/15/2019			—		—		1,455		1,659		1,455		1,659
Oil, Gas & Consumable Fuels
Energy Transfer Partners, LP, 9.70%, 03/15/2019			—		—		900		1,000		900		1,000
Enterprise Products Operating, LP, 8.38%, 08/01/2066			—		—		1,150		794		1,150		794
Opti Canada, Inc., 8.25%, 12/15/2014			—		—		1,800		990		1,800		990
PetroHawk Energy Corp., 9.13%, 07/15/2013			—		—		1,255		1,230		1,255		1,230
Petroleum Development Corp., 12.00%, 02/15/2018			—		—		1,000		675		1,000		675
Valero Logistics Operations, LP, 6.88%, 07/15/2012			—		—		1,500		1,460		1,500		1,460
Paper & Forest Products
Exopack Holding, Inc., 11.25%, 02/01/2014			—		—		2,000		1,400		2,000		1,400
Weyerhaeuser Co., 6.75%, 03/15/2012			—		—		1,300		1,297		1,300		1,297
Professional Services
FTI Consulting, Inc., 7.75%, 10/01/2016			—		—		480		487		480		487
Real Estate Investment Trusts
Healthcare Realty Trust, Inc., 8.13%, 05/01/2011			—		—		1,480		1,422		1,480		1,422
Wea Finance LLC / WCI Finance LLC, 5.40%, 10/01/2012	-144A		—		—		2,100		1,932		2,100		1,932
Road & Rail
CSX Corp., 6.75%, 03/15/2011			—		—		1,675		1,723		1,675		1,723
Hertz Corp., 10.50%, 01/01/2016			—		—		340		241		340		241
Kansas City Southern de Mexico SA de CV, 7.63%, 12/01/2013			—		—		360		294		360		294
Kansas City Southern de Mexico SA de CV, 12.50%, 04/01/2016	-144A		—		—		1,000		966		1,000		966
Specialty Retail
Michaels Stores, Inc., 11.38%, 11/01/2016			—		—		1,200		594		1,200		594
Penske Auto Group, Inc., 7.75%, 12/15/2016			—		—		750		548		750		548
Staples, Inc., 9.75%, 01/15/2014			—		—		1,435		1,575		1,435		1,575
Tobacco
Alliance One International, Inc., 11.00%, 05/15/2012			—		—		425		414		425		414
Wireless Telecommunication Services
Centennial Communications Corp., 6.96%, 01/01/2013			—		—		1,000		1,003		1,000		1,003
					—				80,929				80,929
		Total Cost $ (0)				Total Cost $ (87,534)				Total Cost $ (87,534)
REPURCHASE AGREEMENT (3.3%)
State Street Repurchase Agreement			2,471		2,471		3,739		3,739		6,210		6,210
0.01%, dated 04/30/09, to be repurchased at $6,210 on 05/01/2009					2,471				3,739				6,210
		Total Cost $ (2,471)				Total Cost $ (3,739)				Total Cost $ (6,210)
Total Investment Securities Cost					59,768				132,745				192,513
Total Investment Securities Value					57,894				125,237				183,131
Other Assets and Liabilities, net					5,506				1,183				6,689
Net Assets				$	63,400			$	126,420			$	189,820

FORWARD FOREIGN CURRENCY CONTRACTS:

Currency	Sold			Settlement Date		Amount in U.S. Dollars Sold			Net Unrealized Depreciation
Euro		(3,642	)		7/31/2009		$ (4,752	)		(64	)

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 04/30/2009, these securities aggregated to $30,539, or 16.09%, of the Fund’s net assets.

EUR Euro

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

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Reorganization Between Transamerica Convertible Securities and Transamerica Flexible Income
PRO FORMA STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2009
(all amounts except per share amounts in thousands)

	Transamerica									Combined
	Convertible			Transamerica						Pro Forma
	Securities			Flexible Income			Adjustments			Fund
Assets:
Investment securities, at value	$	55,423		$	121,498		$			$	176,921
Repurchase agreement, at value		2,471			3,739						6,210
Receivables:
Investment securities sold		10,568			3,054						13,622
Shares sold		160			99						259
Interest		247			1,918						2,165
Dividends		112			11						123
Other		8			16						24
		68,989			130,335			—			199,324
Liabilities:
Accounts payable and accrued liabilities:											—
Investment securities purchased		5,490			3,591						9,081
Shares redeemed		11			104						115
Management and advisory fees		40			73						113
Distribution and service fees		10			16						26
Administration fees		1			2						3
Trustees fees		9			17						26
Transfer agent fees		3			5						8
Unrealized depreciation on forward foreign currency contracts		—			64						64
Other		25			43						68
		5,589			3,915						9,504
Net Assets	$	63,400		$	126,420		$			$	189,820
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	106,092		$	205,727		$	(40,814)	(a)	$	271,005
Undistributed net investment income		261			533			(261)	(a)		533
Accumulated net realized loss from investment securities and foreign currency transactions		(41,075	)		(72,260	)		41,075	(a)		(72,260	)
Net unrealized depreciation on:
Investment securities		(1,878	)		(7,516	)					(9,394	)
Translation of assets and liabilities denominated in foreign currencies		—			(64	)					(64	)
Net Assets	$	63,400		$	126,420		$			$	189,820
Net Assets by Class:
Class A	$	10,890		$	15,386		$			$	26,271
Class B		2,297			8,431						10,728
Class C		6,255			6,752						13,007
Class I		43,958			95,851						139,809
Shares Outstanding:
Class A		1,513			2,124			(9	)(b)		3,628
Class B		322			1,163			(5	)(b)		1,480
Class C		880			935			(14	)(b)		1,801
Class I		6,102			13,184			(56	)(b)		19,230
Net Asset Value and Offering Price Per Share:
Class A	$	7.20		$	7.24		$	(7.20	)(c)	$	7.24
Class B		7.14			7.25			(7.14	)(c)		7.25
Class C		7.11			7.22			(7.11	)(c)		7.22
Class I		7.20			7.27			(7.20	)(c)		7.27
Investment Securities, at cost	$	57,297		$	129,006					$	186,303
Repurchase agreement, at cost	$	2,471		$	3,739					$	6,210

(a) - (f) See Note 2 of the Notes to the Pro Forma Financial Statements.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

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Reorganization Between Transamerica Convertible Securities and Transamerica Flexible Income
PRO FORMA STATEMENT OF OPERATIONS
For the twelve months ended April 30, 2009
(all amounts in thousands)

	Transamerica			Transamerica						Combined
	Convertible			Flexible						Pro Forma
	Securities			Income			Adjustments			Fund
Investment Income:
Dividend Income	$	1,172		$	257		$			$	1,429
Interest		3,152			14,970						18,122
Income from loaned securities-net		73			(56	)					17
		4,397			15,171						19,568
Expenses:
Management and advisory fees		944			1,593			(56	)(e)		2,481
Printing and shareholder reports		24			38						62
Custody fees		19			35			(10	)(f)		44
Administration fees		25			44						69
Legal fees		4			7						11
Audit fees		19			19			(14	)(g)		24
Trustees fees		3			6						9
Registration fees		(6	)		2						(4	)
Distribution and service fees:
Class A		47			51						98
Class B		35			96						131
Class C		78			67						145
Transfer agent fees
Class A		26			40						66
Class B		8			29						37
Class C		10			14						24
Other		38			38						76
Total expenses		1,274			2,079			(80	)		3,273
Net Investment Income		3,123			13,092			80			16,295
Net Realized Gain (Loss) from:
Investment securities		(37,621	)		(48,580	)					(86,201	)
Futures Contracts					2						2
Foreign currency transactions					819						819
		(37,621	)		(47,759	)					(85,380	)
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on:
Investment securities		(21,167	)		4,859						(16,308	)
Translation of assets and liabilities denominated in foreign currencies					(64	)					(64	)
		(21,167	)		4,795						(16,372	)
Net Realized and Unrealized Loss		(58,788	)		(42,964	)					(101,752	)
Net Decrease in Net Assets Resulting from Operations	$	(55,665	)	$	(29,872	)	$	80		$	(85,457	)

(a) - (j) See Note 2 of the Notes to the Pro Forma Financial Statements.

THE NOTES TO THE PRO FORMA FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS REPORT.

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NOTES TO THE PRO FORMA FINANCIAL STATEMENTS

REORGANIZATIONS
For the period ended April 30, 2009
(All amounts in thousands)
(Unaudited)

NOTE 1 — GENERAL

The accompanying unaudited pro forma financial statements are presented to show the effect of the proposed transfer of substantially all of the assets of the funds listed in the Target Fund & Shares column (“Target Funds”) in the table below in exchange for shares of the funds listed in the Destination Fund & Shares column (“Acquiring Funds”) and the assumption by the Acquiring Funds of all of the liabilities of the Target Funds as described elsewhere in this proxy statement/prospectus.

Reorganization	Target Fund & Shares	Destination Fund & Shares
Group 1	Transamerica Premier Balanced Fund	Transamerica Balanced
	Investor Class	Class P
	Transamerica Value Balanced	Transamerica Balanced
	Class A	Class A
	Class B	Class B
	Class C	Class C
Group 2	Transamerica Premier Diversified Equity Fund	Transamerica Diversified Equity
	Investor Class	Class P
	Transamerica Premier Institutional Diversified Equity Fund	Transamerica Diversified Equity
	Institutional Class	Class I
	Transamerica Science & Technology	Transamerica Diversified Equity
	Class A	Class A
	Class B	Class B
	Class C	Class C
	Class I	Class I
	Transamerica Templeton Global	Transamerica Diversified Equity
	Class A	Class A
	Class B	Class B
	Class C	Class C
Group 3	Transamerica Premier Equity Fund	Transamerica Equity
	Investor Class	Class P
	Transamerica Premier Institutional Equity Fund	Transamerica Equity
	Institutional Class	Class I
Group 4	Transamerica Premier Focus Fund	Transamerica Legg Mason Partners All Cap
	Investor Class	Class P
Group 5	Transamerica Premier Growth Opportunities Fund	Transamerica Growth Opportunities
	Investor Class	Class P
Group 6	Transamerica Convertible Securities	Transamerica Flexible Income
	Class A	Class A
	Class B	Class B
	Class C	Class C
	Class I	Class I

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The Reorganizations are intended to qualify for Federal income tax purposes as tax-free reorganizations under Section 368 of the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, pursuant to this treatment, neither the Target Funds, nor the Acquiring Funds, nor the shareholders will recognize any gain or loss for federal income tax purposes from the transactions contemplated by the Reorganization Plan. As a condition to the Closing, the Target Funds will receive an opinion from the law firm of Bingham McCutchen LLP to the effect that the Reorganizations will be considered tax-free reorganizations for Federal income tax purposes. That opinion will be based in part upon certain assumptions and upon certain representations made by the Target Funds.

The “Pro Forma Funds” as identified in these financial statements represent the combined funds after the mergers, with the Acquiring Funds treated as the accounting survivors for financial reporting purposes. Management believes the Acquiring Funds to be the accounting survivors because these funds’ investment objectives/styles, fees and expense structures would remain intact with the combined funds.

Under the terms of the Agreement and Plan of Reorganization, the exchange of assets of the Target Funds for shares of the Acquiring Funds will be treated and accounted for as tax-free reorganizations. The acquisitions would be accomplished by acquisitions of the net assets of the Target Funds in exchange for shares of the Acquiring Funds at net asset value. The unaudited pro forma Schedules of Investments and the unaudited Pro Forma Statements of Assets and Liabilities have been prepared as though the acquisitions had been effective on April 30, 2009. The unaudited pro forma Statement of Operations has been prepared as though the acquisition had been effective April 30, 2008, to report operations for the twelve months ended April 30, 2009.

In preparing the Acquiring Funds’ 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 accompanying pro forma financial statements should be read in conjunction with the financial statements of the Target Funds and the Acquiring Funds, which are included in their respective annual reports dated December 31, 2008 and October 31, 2008, respectively.

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NOTE 2 — PRO FORMA ADJUSTMENTS

The Pro Forma adjustments below reflect the impact of the mergers.

(a)	To adjust the Pro Forma Funds Shares of beneficial interest by the Undistributed net investment income and Accumulated net realized loss amounts of the Target Funds.
(b)	To adjust Net Assets by Class of the Pro Forma Funds to reflect the appropriate class net assets of each Pro Forma share class.
(c)	To adjust Shares Outstanding of the Pro Forma Fund based on combining the Fund at the Acquiring Fund’s net asset value.
(d)	To adjust Net Asset Value and Offering Price Per Share of the Pro Forma Fund based on combining the Target Fund at the Acquiring Fund’s net asset value.
(e)	To restate management and advisory fees using the Acquiring Fund advisory fee rates for the Pro Forma Funds at the combined average daily net assets of the Target Funds and Acquiring Funds.
(f)	To remove duplicate Custody fees.
(g)	To remove duplicate Audit fees.
(h)	To move Distribution and service fees from Target Funds’ Investor Class to Acquiring Funds’ Class P.
(i)	To move Transfer agent fees from Target Funds’ Investor Class to Acquiring Funds’ Class P.
(j)	To adjust Fund expense reimbursed and Class expense reimbursed of the Pro Forma Funds to bring total reimbursements to required levels for Pro Forma Funds to not exceed the Pro Forma expense limitations for each Class.

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NOTE 3 — INVESTMENT ADVISORY AND OTHER TRANSACTIONS

Transamerica Asset Management, Inc. (“TAM”) is the Acquiring Funds’ investment adviser. Transamerica Fund Services, Inc. (“TFS”) is the Acquiring Funds’ administrator and transfer agent. Transamerica Capital, Inc. (“TCI”) is the Acquiring Funds’ distributor. TAM, TFS, and TCI are affiliates of AEGON, NV, a Netherlands corporation.

Transamerica Investment Management, LLC (“TIM”) is both an affiliate of and sub-advisor to the Acquiring Funds.

Certain officers and trustees of the Acquiring Funds are also officers and/or directors of TAM, TFS, and TCI.

Investment Advisory Fees

The Acquiring Funds pay management fees to TAM based on average daily net assets (“ANA”) at the following breakpoints:

Transamerica Balanced	Transamerica Diversified Equity
0.80% of the first $250 million	0.73% of the first $500 million
0.75% over $250 million up to $500 million	0.70% over $500 million up to $2.5 billion
0.70% over $500 million up to $1.5 billion	0.65% over $2.5 billion
0.625% over $1.5 billion

Transamerica Equity	Transamerica Legg Mason Partners All Cap
0.75% of the first $500 million	0.80% of the first $500 million
0.70% over $500 million up to $2.5 billion	0.675% over $500 million
0.65% over $2.5 billion

Transamerica Growth Opportunities	Transamerica Flexible Income
0.80% of the first $250 million	0.725% of the first $250 million
0.75% over $250 million up to $500 million	0.675% over $250 million up to $350 million
0.70% over $500 million	0.625% over $350 million

If the reorganization is approved, the Acquiring Funds will pay management fees to TAM based on ANA at the following breakpoints:

Transamerica Balanced	Transamerica Diversified Equity
0.75% of the first $500 million	0.73% of the first $500 million
0.65% over $500 million up to $1 billion	0.70% over $500 million up to $2.5 billion
0.60% over $1 billion	0.65% over $2.5 billion

Transamerica Equity	Transamerica Legg Mason Partners All Cap
0.73% of the first $500 million	0.80% of the first $500 million
0.70% over $500 million up to $2.5 billion	0.675% over $500 million
0.65% over $2.5 billion

Transamerica Growth Opportunities	Transamerica Flexible Income
0.80% of the first $250 million	0.725% of the first $250 million
0.75% over $250 million up to $500 million	0.675% over $250 million up to $350 million
0.70% over $500 million	0.625% over $350 million

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If the reorganization is approved, TAM has contractually agreed to waive its advisory fee and will reimburse the Acquiring Funds to the extent that operating expenses exceed the following stated annual limits:

	Class A, Class B,
	Class C, Class I,
	Class T*			Class P**
Transamerica Balanced		1.45	%		1.10	%
Transamerica Diversified Equity		1.17	%		1.15	%
Transamerica Equity		1.17	%		1.15	%
Transamerica Legg Mason Partners All Cap		1.20	%		1.40	%
Transamerica Growth Opportunities		1.40	%		1.40	%
Transamerica Flexible Income		1.50	%		N/A

If the Acquiring Funds expenses fall below the annual expense limitation agreement agreed to by the advisor within the succeeding three years, the Acquiring Funds may be required to pay the advisor a portion or all of the reimbursed expenses.

*	Limit is for operating expenses, excluding 12b-1 fees.
**	Limit is for operating expenses, including 12b-1 fees.

NOTE 4 — COSTS ASSOCIATED WITH THE REORGANIZATIONS

The cost of the Reorganizations will be shared by TAM and, subject to certain limits, the Target Funds and Destination Funds (and ultimately the shareholders of the Target Funds and Destination Funds).

The estimated fund costs associated with the Reorganizations are as follow:

Reorganization	Fund	Estimated costs (in thousands)
Group 1	Transamerica Value Balanced Transamerica Balanced	$	49 25
Group 2	Transamerica Premier Institutional Diversified Equity Transamerica Science & Technology Transamerica Templeton Global		106 2 1
Group 3	Transamerica Premier Equity Transamerica Premier Institutional Equity Transamerica Equity		15 9 1
Group 4	Transamerica Premier Focus Transamerica Legg Mason Partners All Cap		40 4
Group 5	Transamerica Growth Opportunities		45
Group 6	Transamerica Convertible Securities		42

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ADDITIONAL INFORMATION ABOUT CLASS P SHARES

The following provides certain additional information about Class P shares.

Distribution Plans

As stated in the Information Statement/Prospectus, each Destination Fund has adopted a Distribution Plan pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (individually, a “12b-1 Plan” and collectively, the “12b-1 Plans”), applicable to Class P shares of the Destination Fund. Each 12b-1 Plan is structured as a Compensation Plan.

In determining whether to approve each 12b-1 Plan and the Distribution Agreements, the Trustees considered the possible advantages afforded shareholders from adopting the 12b-1 Plan Plans and Distribution Agreements. The Trustees were informed by representatives of Transamerica Capital, Inc. (“TCI”), the Destination Funds’ principal underwriter and distributor, that payments of distribution-related expenses by the Destination Funds under the 12b-1 Plans would provide incentives to TCI to establish and maintain an enhanced distribution system whereby new investors will be attracted to the Destination Funds. The Trustees believe that improvements in distribution services should result in increased sales of shares in the Destination Funds. In turn, increased sales are expected to lead to an increase in a Destination Fund’s net asset levels, which would enable the Destination Funds to achieve economies of scale and lower their per-share operating expenses. In addition, higher net asset levels could enhance the investment management of the Destination Funds, for net inflows of cash from new sales may enable a Destination Fund’s investment adviser and sub-adviser to take advantage of attractive investment opportunities. Finally, reduced redemptions could eliminate the potential need to liquidate attractive securities positions in order to raise the capital necessary to meet redemption requests.

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Under the 12b-1 Plans, each Destination Fund may pay TCI annual distribution and service fees of up to 0.25% of the average daily net assets of the Destination Fund’s Class P shares.

TCI may use the fees payable under the 12b-1 Plans as it deems appropriate to pay for activities or expenses primarily intended to result in the sale of the Class P shares, or in personal service to and/or maintenance of these shareholder accounts. TCI also may use the fees payable under the 12b-1 Plans to make payments to brokers and other financial intermediaries for past sales and distribution efforts. For Class P, these activities and expenses may include, but are not limited to:

- Compensation to employees of TCI;

- Compensation to and expenses of TCI and other selected dealers who engage in or otherwise support the distribution of shares or who service shareholder accounts;

- Payment for services to and for maintenance of existing shareholder accounts and compensation of broker-dealers or other intermediaries for past sales and distribution efforts;

- The costs of printing and distributing prospectuses, statements of additional information and reports for other than existing shareholders; and

- The cost of preparing, printing and distributing sales literature and advertising materials.

Under the 12b-1 Plans, as required by Rule 12b-1, the Board of Trustees of the Destination Funds (the “Destination Board”) will review, at least quarterly, a written report provided by TCI of the amounts expended in distributing and servicing Class P shares of the Destination Funds and the purpose for which such expenditures were made. For so long as the 12b-1 Plans are in effect, selection and nomination of the Trustees who are not interested persons of a Destination Fund shall be committed to the discretion of the Trustees who are not interested persons of the Destination Fund (the “Independent Trustees”).

A 12b-1 Plan may be terminated as to the Class P shares of the relevant Destination Fund at any time by vote of a majority of the Independent Trustees, or by vote of a majority of the outstanding voting securities of Class P. A 12b-1 Plan may be amended by vote of the Destination Board, including a majority of the Independent Trustees that have no direct or indirect financial interest in the operation of the 12b-1 Plan or any agreement relating thereto, cast in person at a meeting called for that purpose. Any amendment of a 12b-1 Plan that would materially increase the costs to Class P shares requires approval by the holders of Class P shares. Each 12b-1 Plan will remain in effect for successive one year periods, so long as such continuance is approved annually by vote of the Destination Board, including a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such continuance.

Distribution Fees

Class P shares of each Destination Fund are newly offered. Therefore, for the Destination Funds’ fiscal year ended October 31, 2008, no distribution expenses were incurred by TCI for the costs of promotion and distribution with respect to Class P shares of the Destination Funds.

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Dividends and Other Distributions

An investor in the Destination Funds may choose among several options with respect to dividends and capital gains distributions payable to the investor. Dividends or other distributions will be paid in full and fractional shares at the net asset value determined as of the ex-dividend date unless the shareholder has elected another distribution option as described in the Information Statement/Prospectus. Transaction confirmations and checks for payments designated to be made in cash generally will be mailed on the payable date. The per share income dividends on Class P shares of a Destination Fund are anticipated to be higher than the per share income dividends on Class A, Class B, and Class C shares of that Destination Fund, as a result of higher distribution and service fees applicable to the Class A, Class B and Class C shares.

Purchase of Shares

Class P shares of each Destination Fund are closed to new investments and are not available for new investors.

Principal Shareholders

Class P shares of each Destination Fund newly offered, therefore, no shareholders own beneficially or of record any outstanding shares of Class P shares of a Destination Fund.

Shares of Beneficial Interest

The shares of beneficial interest of each Destination Fund are divided into several classes: Class A, Class B, Class C, Class I and Class P shares. Each class represents interests in the same assets of a Destination Fund and differ as follows: each class of shares has exclusive voting rights on matters pertaining to its plan of distribution or any other matter appropriately limited to that class; the classes are subject to differing sales charges as described in the Information Statement/Prospectus; Class B and Class C shares are subject to ongoing distribution and service fees; each class may bear differing amounts of certain class-specific expenses; each class has a separate exchange privilege. Transamerica Funds (“Transamerica Funds” or the “Trust”) does not anticipate that there will be any conflicts between the interests of holders of the different classes of shares of the same Destination Fund by virtue of these classes. On an ongoing basis, the Destination Board will consider whether any such conflict exists and, if so, take appropriate action. On any matter submitted to a vote of shareholders of a series or class, each full issued and outstanding share of that series or class has one vote.

ADDITIONAL INFORMATION ABOUT TRANSAMERICA DIVERSIFIED EQUITY

FUND HISTORY

Transamerica Diversified Equity (the “Fund”) is a newly-organized series of Transamerica Funds, a Delaware statutory trust (the “Trust”).

INVESTMENT OBJECTIVES

The Information Statement/Prospectus discusses the investment objective of the Fund and the principal investment strategies and policies the Fund employs to achieve its objective. The following discussion of Investment Restrictions, Policies and Practices supplements that set forth in the Information Statement/Prospectus.

There can be no assurance that the Fund will, in fact, achieve its objective. The Fund’s investment objective may be changed by the Board of Trustees without shareholder approval. A change in the investment objective of

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the Fund may result in the Fund having an investment objective different from that which the shareholder deemed appropriate at the time of investment.

INVESTMENT RESTRICTIONS, POLICIES AND PRACTICES

FUNDAMENTAL INVESTMENT POLICIES

As indicated in the Information Statement/Prospectus, the Fund is subject to certain fundamental policies which as such may not be changed without shareholder approval. Shareholder approval would be the approval by the lesser of (i) more than 50% of the outstanding voting securities of the Fund, or (ii) 67% or more of the voting securities present at a meeting if the holders of more than 50% of the outstanding voting securities of the Fund are present or represented by proxy. Unless expressly designated as fundamental, all policies of the Fund may be changed by the Trust’s Board of Trustees without shareholder approval. The Fund has adopted, as applicable, the following fundamental policies:

1. Diversification

The Fund shall be a “diversified company” as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”), and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

2. Borrowing

The Fund may not borrow money, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

3. Senior Securities

The Fund may not issue any senior security, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

4. Underwriting Securities

The Fund may not act as an underwriter of securities within the meaning of the Securities Act of 1933, as amended (“1933 Act”), except as permitted under the 1933 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time. Among other things, to the extent that the Fund may be deemed to be an underwriter within the meaning of the 1933 Act, the Fund may act as an underwriter of securities in connection with the purchase and sale of its portfolio securities in the ordinary course of pursuing its investment objective, investment policies and investment program.

5. Real Estate

The Fund may not purchase or sell real estate or any interests therein, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time. Notwithstanding this limitation, the Fund may, among other things, (i) acquire or lease office space for its own use; (ii) invest in securities of issuers that invest in real estate or interests therein; (iii) invest in mortgage-related securities and other securities that are secured by real estate or interests therein; or (iv) hold and sell real estate acquired by the Fund as a result of the ownership of securities.

6. Making Loans

The Fund may not make loans, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

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7. Concentration of Investments

The Fund may not “concentrate” its investments in a particular industry or group of industries (except those funds listed below), except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction from time to time, provided that, without limiting the generality of the foregoing, this limitation will not apply to securities issued or guaranteed as to principal and/or interest by the U.S. government, its agencies or instrumentalities.

8. Commodities

The Fund may not purchase physical commodities or contracts relating to physical commodities, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

NON-FUNDAMENTAL POLICIES

Furthermore, the Fund has adopted the following non-fundamental policies, which may be changed by the Trust’s Board of Trustees without shareholder approval.

(A) Exercising Control or Management

The Fund may not invest in companies for the purposes of exercising control or management.

(B) Purchasing Securities on Margin

The Fund may not purchase securities on margin, except to obtain such short-term credits as are necessary for the clearance of transactions in options, futures contracts, swaps and forward contracts and other derivative instruments, and provided that margin payments and other deposits made in connection with transactions in options, futures contracts, swaps and forward contracts and other derivative instruments shall not constitute purchasing securities on margin.

(C) Illiquid Securities

The Fund may not purchase any security if, as a result, more than 15% of its net assets would be invested in illiquid securities.

(D) Short Sales

The Fund may not sell securities short, except short sales “against the box.” A short sale against the box of a stock is where the seller actually owns or has the right to obtain at no additional cost the stock, but does not want to close out the position.

(E) Investment in Other Investment Companies

The Fund may not acquire securities of other investment companies, except as permitted by the 1940 Act or any order pursuant thereto.

The Fund may not purchase securities issued by registered open-end investment companies or registered unit investment trusts in reliance upon Section 12(d)(1)(F) or Section 12(d)(1)(G) of the 1940 Act.

OTHER POLICIES AND PRACTICES OF THE FUND

The following investments are subject to all applicable rules and regulations and to limitations as set forth in the Fund’s investment restrictions and policies. Unless otherwise specified in this SAI or in the Information

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Statement/Prospectus, the percentages set forth below and the percentage limitations set forth in the Information Statement/Prospectus apply at the time of the purchase of a security and shall not be considered violated unless an excess or deficiency occurs or exists immediately after and as a result of a purchase of such security.

COMMON STOCKS

Subject to its investment restrictions, the Fund may invest in common stocks. Common stocks represent an ownership interest in the issuing company. Holders of common stocks are not creditors of the issuer, and in the event of the liquidation, common stocks are junior to the debt obligations and preferred stocks of an issuer. Hence, dividend payments on common stocks should be regarded as less secure than income payments on corporate debt securities.

EQUITY EQUIVALENTS

In addition to investing in common stocks, the Fund may invest in other equity securities and equity equivalents, including securities that permit the Fund to receive an equity interest in an issuer, the opportunity to acquire an equity interest in an issuer, or the opportunity to receive a return on its investment that permits the fund to benefit from the growth over time in the equity of an issuer. Examples of equity securities and equity equivalents include preferred stock, convertible preferred stock and convertible debt securities.

Preferred Stocks. Subject to the Fund’s investment restrictions, the Fund may purchase preferred stocks. Preferred stocks are securities which represent an ownership interest in a corporation and which give the owner a prior claim over common stock on the corporation’s earnings and assets, however preferred stocks are junior to the debt securities of the issuer in those same respects. Preferred stock generally pays quarterly dividends. Preferred stocks may differ in many of their provisions. Among the features that differentiate preferred stocks from one another are the dividend rights, which may be cumulative or non-cumulative and participating or non-participating, redemption provisions, and voting rights. Such features will establish the income return and may affect the prospects for capital appreciation or risks of capital loss.

The market prices of preferred stocks are subject to changes in interest rates and are more sensitive to changes in an issuer’s creditworthiness than are the prices of debt securities. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Under ordinary circumstances, preferred stock does not carry voting rights.

Convertible Securities. Subject to its investment restrictions, the Fund may invest in debt securities convertible into or exchangeable for equity securities, or debt securities that carry with them the right to acquire equity securities, as evidenced by warrants attached to such securities or acquired as part of units of the securities. Although to a lesser extent than with fixed-income securities generally, the market value of convertible securities tends to decline as interest rates increase and, conversely, tends to increase as interest rates decline. In addition, because of the conversion feature, the market value of convertible securities tends to vary with fluctuations in the market value of the underlying common stocks and, therefore, also will react to variations in the general market for equity securities. A significant feature of convertible securities is that as the market price of the underlying common stock declines, convertible securities tend to trade increasingly on a yield basis, and so they may not experience market value declines to the same extent as the underlying common stock. When the market price of the underlying common stock increases, the prices of the convertible securities tend to rise as a reflection of the value of the underlying common stock. While no securities investments are without risk, investments in convertible securities generally entail less risk than investments in common stock of the same issuer.

As fixed-income securities, convertible securities tend to provide for a stream of income with generally higher yields than common stocks. Of course, like all fixed-income securities, there can be no assurance of current income because the issuers of the convertible securities may default on their obligations. Convertible securities normally pay less current income than securities without conversion features, but add the potential opportunity

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for capital appreciation from enhanced value for the equity securities into which they are convertible, and the concomitant risk of loss from declines in those values. A convertible security, in addition to providing fixed-income, offers the potential for capital appreciation through the conversion feature, which enables the holder to benefit from increases in the market price of the underlying common stock. However, there can be no assurance of capital appreciation.

Convertible securities generally are subordinated to other similar but non-convertible securities of the same issuer, although convertible bonds, as corporate debt obligations, enjoy seniority in right of payment to all equity securities, and convertible preferred stock is senior to common stock of the same issuer. Because of the subordination feature, however, convertible securities typically have lower ratings than similar non-convertible securities.

The Fund will limit its holdings of convertible debt securities to those that, at the time of purchase, are rated at least B- by Standard and Poor’s Ratings Group (“S&P”) or B3 by Moody’s Investors Services, Inc. (“Moody’s”), or, if not rated by S&P or Moody’s, are of equivalent investment quality as determined by the sub-adviser. The Fund’s investments in convertible debt securities and other high-yield, non-convertible debt securities rated below investment-grade will comprise less than 25% of the Fund’s net assets. Debt securities rated below the four highest categories are not considered “investment-grade” obligations. These securities have speculative characteristics and present more credit risk than investment-grade obligations. Equity equivalents also may include securities whose value or return is derived from the value or return of a different security. Depositary receipts are an example of the type of derivative security in which the Fund might invest.

Master Limited Partnerships. The Fund may invest in Master Limited Partnership units, which have limited control and voting rights, similar to those of a limited partner. An MLP could be taxed, contrary to its intention, as a corporation, resulting in decreased returns. MLPs may, for tax purposes, affect the character of the gain and loss realized by the Fund and affect the holding period of the Fund’s assets.

REPURCHASE AGREEMENTS

Subject to its investment restrictions, the Fund may enter into repurchase agreements. In a repurchase agreement, the Fund purchases a security and simultaneously commits to resell that security to the seller at an agreed-upon price on an agreed-upon date within a number of days (usually not more than seven) from the date of purchase. The resale price reflects the purchase price plus an agreed-upon incremental amount which is unrelated to the coupon rate or maturity of the purchased security. A repurchase agreement involves the obligation of the seller to pay the agreed-upon price, which obligation is in effect secured by the value (at least equal to the amount of the agreed-upon resale price and marked-to-market daily) of the underlying security or collateral.

All repurchase agreements entered into by the Fund shall be fully collateralized at all times during the period of the agreement in that the value of the underlying security shall be at least equal to an amount of the loan, including interest thereon, and the Fund or its custodian shall have control of the collateral, which the sub-adviser believes will give the Fund a valid, perfected security interest in the collateral.

The Fund may engage in a repurchase agreement with respect to any security in which it is authorized to invest. While it does not presently appear possible to eliminate all risks from these transactions (particularly the possibility of a decline in the market value of the underlying securities, as well as delays and costs to the Fund in connection with bankruptcy proceedings), it is the policy of the Fund to limit repurchase agreements to those parties whose creditworthiness has been reviewed and found satisfactory by the Fund’s sub-adviser and approved by the Board of Trustees.

Repurchase agreements involve the risk that the seller will fail to repurchase the security, as agreed. In that case, the Fund will bear the risk of market value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and

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costs are incurred. Repurchase agreements could involve certain risks in the event of default or insolvency of the other party, including possible delays or restrictions upon the Fund’s ability to dispose of the underlying securities, the risk of a possible decline in the value of the underlying securities during the period in which the Fund seeks to assert its right to them, the risk of incurring expenses associated with asserting those rights and the risk of losing all or part of the income from the agreement.

REVERSE REPURCHASE AGREEMENTS AND OTHER BORROWINGS

The Fund may engage in reverse repurchase agreements or other borrowing transactions as a means of raising cash to satisfy redemption requests or for other temporary or emergency purposes. The Fund may also engage in reverse repurchase agreements or other borrowing transactions in order to reinvest the proceeds in other securities or instruments.

Subject to its investment restrictions, the Fund may enter into reverse repurchase agreements. In a reverse repurchase agreement, the Fund sells a portfolio instrument to another party, such as a bank or broker-dealer, in return for cash and agrees to repurchase the instrument at a particular price and time. While a reverse repurchase agreement is outstanding, the Fund will segregate with its custodian cash and appropriate liquid assets with the Fund’s custodian to cover its obligation under the agreement. The Fund’s liquidity and ability to manage its assets might be affected when it sets aside cash or portfolio securities to cover such commitments.

The Fund will enter into reverse repurchase agreements only with parties the Fund’s sub-adviser deems creditworthy.

Reverse repurchase agreements may expose the Fund to greater fluctuations in the value of its assets. When the Fund reinvests the proceeds of a reverse repurchase agreement in other securities, any fluctuations in the market value of either the securities the Fund is committed to repurchase from the other party or any securities in which the proceeds are invested would affect the market value of the Fund’s assets. In addition, if the Fund is not able to reinvest the proceeds of the agreement at a rate equal to or higher than the rate that it is obligated to pay under the reverse repurchase agreement, engaging in the agreement will lower the Fund’s income.

Although a reverse repurchase agreement receives special treatment in the event of the bankruptcy or insolvency of one of the parties, there still may be delays and costs involved in the Fund exercising its rights under the agreement.

Borrowing may make the value of an investment in the Fund more volatile and increase the Fund’s overall investment exposure. The Fund may be required to liquidate portfolio securities at a time when it would be disadvantageous to do so in order to make payments with respect to any borrowing, which could affect the portfolio managers’ strategy and the ability of the Fund to comply with certain provisions of the Internal Revenue Code of 1986, as amended (the “Code”) in order to provide pass-though tax treatment to shareholders. Interest on any borrowings will be a fund expense and will reduce the value of the Fund’s shares.

WARRANTS AND RIGHTS

Subject to its investment restrictions, the Fund may invest in warrants and rights. A warrant is a type of security that entitles the holder to buy a proportionate amount of common stock at a specified price, usually higher than the market price at the time of issuance, for a period of years or to perpetuity. In contrast, rights, which also represent the right to buy common shares, normally have a subscription price lower than the current market value of the common stock and a life of two to four weeks.

Warrants and rights are subject to the same market risks as common stocks, but may be more volatile in price. An investment in warrants or rights may be considered speculative. In addition, the value of a warrant or right does not necessarily change with the value of the underlying securities and a warrant or right ceases to have value if it is not exercised prior to its expiration date.

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OPTIONS, FUTURES AND OTHER DERIVATIVE INSTRUMENTS

Options on Securities and Indices. In an effort to increase current income and to reduce fluctuations in net asset value, the Fund may write covered put and call options and buy put and call options on securities that are traded on United States and foreign securities exchanges, and over-the-counter. The Fund also may write call options that are not covered for cross-hedging purposes. The Fund may write and buy options on the same types of securities that the Fund may purchase directly. There are no specific limitations on the Fund’s writing and buying of options on securities.

A call option gives the purchaser the right to buy, and a writer has the obligation to sell, the underlying security at the stated exercise price at any time prior to the expiration of the option, regardless of the market price or exchange rate of the security, as the case may be. The premium paid to the writer is consideration for undertaking the obligations under the option contract. A put option gives the purchaser the right to sell, and a writer has the obligation to buy, the underlying security at the stated exercise price at any time prior to the expiration date of the option, regardless of the market price or exchange rate of the security, as the case may be. A call option is covered if the Fund owns the underlying security covered by the call or has an absolute and immediate right to acquire that security without additional cash consideration (or for additional cash consideration if the underlying security is held in a segregated account by its custodian) upon conversion or exchange of other securities held in its portfolio. A put option is covered if the Fund segregates cash or other liquid assets with a value equal to the exercise price with its custodian. Put and call options will be valued at the last sale price or, in the absence of such a price, at the average between closing bid and asked price.

The Fund may effectively terminate its right or obligation under an option by entering into a closing transaction. When a portfolio security or currency subject to a call option is sold, the Fund will effect a “closing purchase transaction”— the purchase of a call option on the same security or currency with the same exercise price and expiration date as the call option which the Fund previously has written. If the Fund is unable to effect a closing purchase transaction, it will not be able to sell the underlying security or currency until the option expires or the fund delivers the underlying security or currency upon exercise. In addition, upon the exercise of a call option by the holder thereof, the Fund will forego the potential benefit represented by market appreciation over the exercise price.

A put option written by the Fund is “covered”, as that term is used in SEC interpretations and guidance regarding cover, if the fund (i) maintains cash not available for investment or other liquid assets with a value equal to the exercise price in a segregated account with its custodian (alternatively, liquid assets may be earmarked on the fund’s records) or (ii) holds a put on the same security and in the same principal amount as the put written and the exercise price of the put held is equal to or greater than the exercise price of the put written. The premium paid by the buyer of an option will reflect, among other things, the relationship of the exercise price to the market price and the volatility of the underlying security, the remaining term of the option, supply and demand and interest rates. A call option written by the Fund is “covered” if the Fund owns the underlying security covered by the call or has an absolute and immediate right to acquire that security without additional cash consideration (or has segregated additional cash consideration with its custodian (alternatively, liquid assets may be earmarked on the fund’s records)) upon conversion or exchange of other securities held in its portfolio. A call option is also deemed to be covered if the Fund holds a call on the same security and in the same principal amount as the call written and the exercise price of the call held (i) is equal to or less than the exercise price of the call written or (ii) is greater than the exercise price of the call written if the Fund has segregated additional cash consideration with its custodian, or earmarked liquid assets on its records equal to the difference between the exercise price of the call written and that of the call held to cover such call.

When the Fund writes an option, an amount equal to the net premium (the premium less the commission) received by the Fund is included in the liability section of its statement of assets and liabilities as a deferred credit. The amount of the deferred credit will be subsequently marked-to-market to reflect the current value of the option written. The current value of the traded option is the last sale price or, in the absence of a sale, the average of the closing bid and asked prices. If an option expires on the stipulated expiration date, or if the Fund enters into a

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closing purchase transaction, it will realize a gain (or a loss if the cost of a closing purchase transaction exceeds the net premium received when the option is sold) and the deferred credit related to such option will be eliminated. If an option written by the Fund is exercised, the Fund may deliver the underlying security in the open market. In either event, the proceeds of the sale will be increased by the net premium originally received and the Fund will realize a gain or loss.

Purchasers of options pay an amount known as a premium to the option writer in exchange for the right under the option contract. A principal reason for writing put and call options is to attempt to realize, through the receipt of premium income, a greater current return than would be realized on the underlying securities alone. This premium income will serve to enhance the Fund’s total return and will reduce the effect of any price decline of the security involved in the option. In return for the premium received for a call option, the Fund foregoes the opportunity for profit from a price increase in the underlying security above the exercise price so long as the option remains open, but retains the risk of loss should the price of the security decline. In return for the premium received for a put option, the Fund assumes the risk that the price of the underlying security will decline below the exercise price, in which case the put would be exercised and the fund would suffer a loss.

Once the decision to write a call option has been made, the Fund’s investment adviser or a sub-adviser, in determining whether a particular call option should be written on a particular security, will consider the reasonableness of the anticipated premium and the likelihood that a liquid secondary market will exist for those options. Closing transactions will be effected in order to realize a profit on an outstanding call option, to prevent an underlying security from being called, or to permit a sale of the underlying security. Furthermore, effecting a closing transaction will permit the Fund to write another call option on the underlying security with either a different exercise price or expiration date or both. If the Fund desires to sell a particular security from its portfolio on which it has written a call option, it will seek to effect a closing transaction prior to, or concurrently with, the sale of the security. There is, of course, no assurance that the Fund will be able to effect such closing transactions at a favorable price. If the Fund cannot enter into such a transaction, it may be required to hold a security that it might otherwise have sold, in which case it would continue to be at market risk on the security. This could result in higher transaction costs. The Fund will pay transaction costs in connection with the purchase or writing of options to close out previously purchased or written options. Such transaction costs are normally higher than those applicable to purchases and sales of portfolio securities.

Exercise prices of options may be below, equal to, or above the current market values of the underlying securities at the time the options are written. From time to time, the Fund may purchase an underlying security for delivery in accordance with an exercise notice of a call option, rather than delivering such security from its portfolio. In such cases, additional costs will be incurred. The Fund will realize a profit or loss from a closing purchase transaction if the cost of the transaction is less or more than the premium received from the writing of the option. Because increases in the market price of a call option will generally reflect increases in the market price of the underlying security, any loss resulting from the writing of a call option is likely to be offset in whole or in part by appreciation of the underlying security owned by the Fund.

The Fund may purchase put options in an effort to protect the value of a security it owns against a possible decline in market value. When the Fund purchases put options, the Fund is purchasing the right to sell a specified security (or securities) within a specified period of time at a specified exercise price. Puts may be acquired to facilitate the liquidity of the portfolio assets. Puts may also be used to facilitate the reinvestment of assets at a rate of return more favorable than that of the underlying security. The Fund may sell, transfer, or assign a put it has purchased only in conjunction with the sale, transfer, or assignment of the underlying security or securities. The amount payable to the Fund upon its exercise of a “put” is normally (i) the Fund’s acquisition cost of the securities subject to the put (excluding any accrued interest which the fund paid on the acquisition), less any amortized market premium or plus any accreted market or original issue discount during the period the Fund owned the securities; plus (ii) all interest accrued on the securities since the last interest payment date during that period.

Writing a put option involves the risk of a decrease in the market value of the underlying security, in which case the option could be exercised and the underlying security would then be sold by the option holder to the Fund at a

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higher price than its current market value. The Fund retains the premium received from writing a put option whether or not the option is exercised.

Index options (or options on securities indices) are similar in many respects to options on securities, except that an index option gives the holder the right to receive, upon exercise, cash instead of securities, if the closing level of the securities index upon which the option is based is greater than, in the case of a call, or less than, in the case of a put, the exercise price of the option.

Because index options are settled in cash, a fund that writes a call on an index cannot determine the amount of its settlement obligations in advance and, unlike call writing on specific securities, cannot provide in advance for, or cover, its potential settlement obligations by acquiring and holding the underlying securities. The Fund will segregate assets or otherwise cover index options that would require it to pay cash upon exercise.

Index options are also subject to the timing risk inherent in writing index options. When an index option is exercised, the amount of cash that the holder is entitled to receive is determined by the difference between the exercise price and the closing index level on the date when the option is exercised. If the Fund has purchased an index option and exercises it before the closing index value for that day is available, it runs the risk that the level of the underlying index may subsequently change. If such a change causes the exercised option to fall “out-of-the-money”, the Fund will be required to pay cash in an amount of the difference between the closing index value and the exercise price of the option.

Options on Foreign Currencies. The Fund may buy and write options on foreign currencies in a manner similar to that in which futures contracts or forward contracts, both as described below, on foreign currencies will be utilized. For example, a decline in the U.S. dollar value of a foreign currency in which fund securities are denominated will reduce the U.S. dollar value of such securities, even if their value in the foreign currency remains constant. In order to protect against such diminutions in the value of fund securities, the Fund may buy put options on the foreign currency. If the value of the currency declines, the Fund will have the right to sell such currency for a fixed amount in U.S. dollars and, by doing so, will offset, in whole or in part, the adverse effect on its portfolio.

Conversely, when a rise in the U.S. dollar value of a currency in which securities to be acquired are denominated is projected, thereby increasing the cost of such securities, the Fund may buy call options thereon. The purchase of such options could offset, at least partially, the effects of the adverse movements in exchange rates. If currency exchange rates do not move in the direction or to the extent desired, the Fund could sustain losses on transactions in foreign currency options that would require the Fund to forego a portion or all of the benefits of advantageous changes in those rates. In addition, as in the case of other types of options, the benefit to the Fund from purchases of foreign currency options will be reduced by the amount of the premium and related transaction costs. Buying put or call options will not protect the Fund against price movements in the securities that are attributable to other causes.

The Fund may also write options on foreign currencies. For example, in attempting to hedge against a potential decline in the U.S. dollar value of foreign currency denominated securities due to adverse fluctuations in exchange rates, the Fund could, instead of purchasing a put option, write a call option on the relevant currency. If the expected decline occurs, the option will most likely not be exercised and the diminution in value of fund securities will be offset by the amount of the premium received.

Similarly, instead of purchasing a call option to attempt to hedge against a potential increase in the U.S. dollar cost of securities to be acquired, the Fund could write a put option on the relevant currency which, if exchange rates move in the manner projected, will expire unexercised and allow that fund to offset the increased cost of the securities up to the amount of premium. As in the case of other types of options, however, the writing of a foreign currency option will constitute only a partial hedge up to the amount of the premium. If exchange rates do not move in the expected direction, the option may be exercised and the Fund would be required to buy or sell the underlying currency at a loss which may not be offset by the amount of the premium. Through the

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writing of options on foreign currencies, the Fund also may lose all or a portion of the benefits which might otherwise have been obtained from favorable movements in exchange rates.

The Fund may write covered call options on foreign currencies. A call option written on a foreign currency by the Fund is “covered” if the Fund owns the underlying foreign currency covered by the call or has an absolute and immediate right to acquire that foreign currency without additional cash consideration (or for additional cash consideration that is segregated by its custodian) upon conversion or exchange of other foreign currency held in its account. A call option is also covered if: (i) the Fund holds a call at the same exercise price for the same exercise period and on the same currency as the call written; or (ii) at the time the call is written, an amount of cash, or other liquid assets equal to the fluctuating market value of the optioned currency is segregated with the Fund’s custodian.

The Fund may write call options on foreign currencies for cross-hedging purposes that would not be deemed to be covered. A call option on a foreign currency is for cross-hedging purposes if it is not covered but is designed to provide a hedge against a decline due to an adverse change in the exchange rate in the U.S. dollar value of a security which the Fund owns or has the right to acquire and which is denominated in the currency underlying the option. In such circumstances, the Fund collateralizes the option by segregating cash or other liquid assets in an amount not less than the value of the underlying foreign currency in U.S. dollars marked-to-market daily.

The interbank market in non-U.S. currencies is a global and round-the-clock market. To the extent the U.S. options market is closed while the markets for the underlying currencies remain open, significant price and rate movements might take place in the underlying markets that cannot be reflected in the U.S. options market until it reopens. Transactions involving non-U.S. currencies might be required to take place within the country issuing the underlying currency. Thus, the Fund might be required to accept or make delivery of the underlying non-U.S. currency in accordance with any U.S. or non-U.S. regulations regarding the maintenance of non-U.S. banking arrangements by U.S. residents and might be required to pay any fees, taxes and charges associated with such delivery assessed in the issuing country. Options on non-U.S. currencies also have the risks of options on securities and indices, as discussed above.

Futures Contracts and Options thereon. The Fund may enter into futures contracts, purchase or sell options on any such futures contracts, and engage in related closing transactions, to the extent permissible by applicable law. Futures contracts are for the purchase and sale, for future delivery, of equity or fixed-income securities, foreign currencies or contracts based on financial indices, including indices of U.S. government securities, foreign government securities and equity or fixed-income securities. The Fund may enter into interest rate futures contracts. These contracts are for the purchase or sale of underlying debt instruments when the contract expires. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index.

U.S. futures contracts are traded on exchanges which have been designated “contract markets” by the CFTC and must be executed through a Futures Commission Merchant (“FCM”), or brokerage firm, which is a member of the relevant contract market. Through their clearing corporations, the exchanges guarantee performance of the contracts as between the clearing members of the exchange.

The Fund may use futures contracts to hedge against anticipated future changes in market conditions which otherwise might adversely affect the value of securities which the Fund holds or intends to purchase. For example, when interest rates are expected to rise or market values of portfolio securities are expected to fall, the Fund can seek through the sale of futures contracts to offset a decline in the value of its portfolio securities. When interest rates are expected to fall or market values are expected to rise, the Fund, through the purchase of futures contracts, can attempt to secure better rates or prices than might later be available in the market when it effects anticipated purchases.

The Fund also may purchase and sell put and call options on futures contracts. An option on a futures contract gives the purchaser the right, but not the obligation, in return for the premium paid, to assume (in the case of a

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call) or sell (in the case of a put) a position in a specified underlying futures contract (which position may be a long or short position) for a specified exercise price at any time during the option exercise period.

At the inception of a futures contract, the Fund is required to make an initial margin deposit. Margin must also be deposited when writing a call or put option on a futures contract, in accordance with applicable exchange rules. Under certain circumstances, such as periods of high volatility, the Fund may be required by an exchange to increase the level of its initial margin payment, and initial margin requirements might be increased generally in the future by regulatory action. The Fund is also subject to calls for daily variation margin payments as the value of the futures position varies, a process known as “marking-to-market.” Daily variation margin calls could be substantial in the event of adverse price movements. If the Fund has insufficient cash to meet daily variation margin requirements, it might need to sell securities at a time when such sales are disadvantageous.

If the Fund were unable to liquidate a futures contract or an option on a futures position due to the absence of a liquid secondary market, the imposition of price limits or otherwise, it could incur substantial losses. The Fund would continue to be subject to market risk with respect to the position. In addition, except in the case of purchased options, the Fund would continue to be required to make daily variation margin payments and might be required to maintain the position being hedged by the future or option or to maintain cash or securities in a segregated account.

Futures transactions involve brokerage costs and require the Fund to segregate liquid assets, such as cash or other liquid securities to cover its obligation under such contracts. There is a possibility that the Fund may lose the expected benefit of futures transactions if interest rates or securities prices move in an unanticipated manner. Such unanticipated changes may also result in poorer overall performance than if the Fund had not entered into any futures transactions. In addition, the value of futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities, limiting the Fund’s ability to hedge effectively against interest rates and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions.

Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract or an option on a futures contract can vary from the previous day’s settlement price; once that limit is reached, no trades may be made that day at a price beyond the limit. Daily price limits do not limit potential losses because prices could move to the daily limit for several consecutive days with little or no trading, thereby preventing liquidation of unfavorable positions.

With respect to futures contracts that are not legally required to “cash settle,” the Fund may cover the open position by setting aside or earmarking liquid assets in an amount equal to the market value of the futures contact. With respect to futures that are required to “cash settle,” however, the Fund is permitted to set aside or earmark liquid assets in an amount equal to the portfolio’s daily marked-to-market (net) obligation, if any, (in other words, the portfolio’s daily net liability, if any) rather than the market value of the futures contract. By setting aside assets equal to its net obligation under cash-settled futures, the Fund will have the ability to employ leverage to a greater extent than if the Fund were required to segregate assets equal to the full market value of the futures contract.

Futures transactions will be limited to the extent necessary to maintain the qualification of the Fund as a regulated investment company. Pursuant to a claim for exemption filed with the CFTC and/or the National Futures Association on behalf of the Fund and its adviser, the Fund and the adviser are not deemed to be a “commodity pool” or “commodity pool operator” under the Commodity Exchange Act and are not subject to registration or regulation as such under the Commodity Exchange Act. By virtue of changes to CFTC regulations, the substantive limitations set forth in the Fund’s exemption filing with respect to its use of futures contracts are no longer applicable.

Forward Contracts. A forward contract is an agreement between two parties in which one party is obligated to deliver a stated amount of a stated asset at a specified time in the future, and the other party is obligated to pay a

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specified invoice amount for the assets at the time of delivery. The Fund may enter into forward contracts to purchase and sell government securities, foreign currencies or other financial instruments. Forward contracts generally are traded in an interbank market conducted directly between traders (usually large commercial banks) and their customers. Unlike futures contracts, which are standardized contracts, forward contracts can be specifically drawn to meet the needs of the parties that enter into them. The parties to a forward contract may agree to offset or terminate the contract before its maturity, or may hold the contract to maturity and complete the contemplated exchange.

The following discussion summarizes the Fund’s principal uses of forward foreign currency exchange contracts (“forward currency contracts”).

The Fund may enter into forward currency contracts with stated contract values of up to the value of the Fund’s assets. The Fund may enter into forward currency contracts in order to hedge against adverse movements in exchange rates between currencies. A forward currency contract is an obligation to buy or sell an amount of a specified currency for an agreed upon price (which may be in U.S. dollars or another currency). The Fund will exchange foreign currencies for U.S. dollars and for other foreign currencies in the normal course of business.

The Fund may use currency exchange contracts in the normal course of business to lock in an exchange rate in connection with purchases and sales of securities denominated in foreign currencies (transaction hedge) or to lock in the U.S. dollar value of portfolio positions (position hedge). In addition, the Fund may cross hedge currencies by entering into a transaction to purchase or sell one or more currencies that are expected to decline in value relative to other currencies to which the Fund has or expects to have portfolio exposure. The Fund may also engage in proxy hedging which is defined as entering into positions in one currency to hedge investments denominated in another currency, where the two currencies are economically linked. The Fund’s entry into a forward currency contract, as well as any use of cross or proxy hedging techniques will generally require the Fund to hold liquid securities or cash equal to the Fund’s obligations in a segregated account throughout the duration of the contract. While a position hedge may offset both positive and negative currency fluctuations, it will not offset changes in security values caused by other factors. Proxy hedges may result in losses if the currency used to hedge does not perform similarly to the currency in which the hedged securities are denominated.

The Fund may also combine forward currency contracts with investments in securities denominated in other currencies in order to achieve desired equity, credit and currency exposures. Such combinations are generally referred to as synthetic securities. For example, in lieu of purchasing a foreign equity or bond, the Fund may purchase a U.S. dollar-denominated security and at the same time enter into a forward foreign currency exchange contract to exchange U.S. dollars for the contract’s underlying currency at a future date. By matching the amount of U.S. dollars to be exchanged with the anticipated value of the U.S. dollar-denominated security, the Fund may be able to lock in the foreign currency value of the security and adopt a synthetic investment position reflecting the equity return or credit quality of the U.S. dollar-denominated security.

By entering into a forward currency contract in U.S. dollars for the purchase or sale of the amount of foreign currency involved in an underlying security transaction, the Fund is able to protect itself against a possible loss between trade and settlement dates resulting from an adverse change in the relationship between the U.S. dollar and such foreign currency. However, this tends to limit potential gains which might result from a positive change in such currency relationships. The Fund may also hedge foreign currency exchange rate risk by engaging in currency financial futures and options transactions, which are described above. The forecasting of short-term currency market movements is extremely difficult and whether such a short-term hedging strategy will be successful is highly uncertain.

It is impossible to forecast with precision the market value of portfolio securities at the expiration of a forward currency contract. Accordingly, it may be necessary for the Fund to purchase additional currency on the spot market if the market value of the security is less than the amount of foreign currency the Fund is obligated to deliver when a decision is made to sell the security and make delivery of the foreign currency in settlement of a

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forward contract. Conversely, it may be necessary to sell on the spot market some of the foreign currency received upon the sale of the portfolio security if its market value exceeds the amount of foreign currency the Fund is obligated to deliver.

If the Fund retains the portfolio security and engages in an offsetting transaction, it will incur a gain or a loss to the extent that there has been movement in forward currency contract prices. If the Fund engages in an offsetting transaction, it may subsequently enter into a new forward currency contract to sell the foreign currency. Although such contracts tend to minimize the risk of loss due to a decline in the value of the hedged currency, they also tend to limit any potential gain which might result should the value of such currency increase. The Fund will have to convert its holdings of foreign currencies into U.S. dollars from time to time. Although foreign exchange dealers do not charge a fee for conversion, they do realize a profit based on the difference (the “spread”) between the prices at which they are buying and selling various currencies.

Secondary markets generally do not exist for forward currency contracts, with the result that closing transactions generally can be made for forward currency contracts only by negotiating directly with the counterparty. Thus, there can be no assurance that the Fund will in fact be able to close out a forward currency contract at a favorable price prior to maturity. In addition, in the event of insolvency of the counterparty, the Fund might be unable to close out a forward currency contract at any time prior to maturity, if at all. In either event, the Fund would continue to be subject to market risk with respect to the position, and would continue to be required to maintain the required cover.

While forward currency contracts are not currently regulated by the CFTC, the CFTC may in the future assert authority to regulate forward currency contracts. In such event, the Fund’s ability to utilize forward currency contracts may be restricted. In addition, the Fund may not always be able to enter into forward currency contracts at attractive prices and may be limited in its ability to use these contracts to hedge its assets.

Swaps and Swap-Related Products. In order to attempt to protect the value of its investments from interest rate or currency exchange rate fluctuations, the Fund may, subject to its investment restrictions, enter into interest rate and currency exchange rate swaps, and may buy or sell interest rate and currency exchange rate caps and floors. The Fund’s sub-adviser may enter into these transactions primarily to attempt to preserve a return or spread on a particular investment or portion of its portfolio. The Fund also may enter into these transactions to attempt to protect against any increase in the price of securities the Fund may consider buying at a later date.

Interest rate swaps involve the exchange by the Fund with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments. The exchanged commitments can involve payments to be made in the same currency or in different currencies. The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index exceeds a predetermined interest rate, to receive payments of interest on a contractually based principal amount from the party selling the interest rate cap. The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a predetermined interest rate, to receive payments of interest on a contractually based principal amount from the party selling the interest rate floor.

The Fund, subject to its investment restrictions, enters into interest rate swaps, caps and floors on either an asset-based or liability-based basis, depending upon whether it is hedging its assets or its liabilities, and will usually enter into interest rate swaps on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments). The net amount of the excess, if any, of the Fund’s obligations over its entitlements with respect to each interest rate swap, will be calculated on a daily basis. An amount of cash or other liquid assets having an aggregate net asset value at least equal to the accrued excess will be segregated by its custodian.

If the Fund enters into an interest rate swap on other than a net basis, it will maintain a segregated account in the full amount accrued on a daily basis of its obligations with respect to the swap. The Fund will not enter into any

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interest rate swap, cap or floor transaction unless the unsecured senior debt or the claims-paying ability of the other party thereto is rated in one of the three highest rating categories of at least one nationally recognized statistical rating organization at the time of entering into such transaction. The Fund’s sub-adviser will monitor the creditworthiness of all counterparties on an ongoing basis. If there is a default by the counterparty to such a transaction, the Fund will have contractual remedies pursuant to the agreements related to the transaction, which may be limited by applicable law in the case of the counterparty’s insolvency.

The swap market has grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. The Fund’s sub-adviser has determined that, as a result, the swap market (except for certain credit default swaps discussed below) has become relatively liquid. The swap market is a relatively new market and is largely unregulated. It is possible that developments in the swap market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing credit default swap agreements (as discussed below) or to realize amounts to be received under such agreements.

Nonetheless, caps and floors are more recent innovations and, may be less liquid than swaps. To the extent the Fund sells (i.e., writes) caps and floors, it will segregate cash or other liquid assets having an aggregate net asset value at least equal to the full amount, accrued on a daily basis, of its obligations with respect to any caps or floors.

There is no limit on the amount of interest rate swap transactions that may be entered into by the Fund, unless so stated in its investment objectives and policies. These transactions may in some instances involve the delivery of securities or other underlying assets by the Fund or its counterparty to collateralize obligations under the swap.

Under the documentation currently used in those markets, the risk of loss with respect to interest rate swaps is limited to the net amount of the interest payments that the Fund is contractually obligated to make. If the other party to an interest rate swap that is not collateralized defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. The Fund may buy and sell (i.e., write) caps and floors without limitation, subject to the segregation requirement described above.

In addition to the instruments, strategies and risks described in this SAI and in the Information Statement/Prospectus, there may be additional opportunities in connection with options, futures contracts, forward currency contracts and other hedging techniques that become available as the Fund’s sub-adviser develops new techniques, as regulatory authorities broaden the range of permitted transactions, and as new instruments are developed. The Fund’s sub-adviser may use these opportunities to the extent they are consistent with the Fund’s investment objective and as are permitted by the Fund’s investment limitations and applicable regulatory requirements.

Credit Default Swaps. The Fund may enter into credit default swap contracts for investment purposes. As the seller in a credit default swap contract, the Fund would be required to pay the par (or other agreed-upon) value of a referenced debt obligation to the counterparty in the event of a default by a third party, such as a U.S. or foreign corporate issuer, on the debt obligation. In return, the Fund would receive from the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, the Fund would keep the stream of payments and would have no payment obligations. As the seller, the Fund would be subject to investment exposure on the notional amount of the swap.

The Fund may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio, in which case the Fund would function as the counterparty referenced in the preceding paragraph. This would involve the risk that the investment may expire worthless and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability).

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Credit default swap contracts involve special risks and may result in losses to the Fund. Credit default swaps may in some cases be illiquid, and they increase credit risk since the Fund has exposure to both the issuer of the referenced obligation and the counterparty to the credit default swap. As there is no central exchange or market for credit default swap transactions, they may be difficult to trade or value, especially in the event of market disruptions.

Total Rate of Return Swaps. The Fund may enter into total rate of return swap contracts for investment purposes. Total rate of return swaps are contracts in which one party agrees to make payments of the total return from the underlying asset during the specified period, in return for payments equal to a fixed or floating rate of interest or the total return from another underlying asset.

Swaptions. The Fund may write swaption contracts to manage exposure to fluctuations in interest rates and to enhance fund yield. Swaption contracts written by the Fund represent an option that gives the purchaser the right, but not the obligation, to enter into a previously agreed upon swap contract on a future date. If a written call swaption is exercised, the writer will enter a swap and is obligated to pay the fixed rate and receive a variable rate in exchange. Swaptions are marked-to-market daily based upon quotations from market makers.

Euro Instruments. The Fund may make investments in Euro instruments. Euro instruments are U.S. dollar-denominated futures contracts, or options thereon, which are linked to the London Interbank Offered Rate (the “LIBOR”), although foreign currency-denominated instruments are available from time to time. Euro futures contracts enable purchasers to obtain a fixed rate for the lending of cash, and sellers to obtain a fixed rate for borrowings. The Fund might use Euro futures contracts and options thereon to hedge against changes in LIBOR, which may be linked to many interest rate swaps and fixed-income instruments.

Special Investment Considerations and Risks. The use of options, futures and certain other derivative instruments is subject to applicable rules and regulations of the SEC, the CFTC, and the several exchanges on which they are traded. Options, futures and other derivative instruments generally are used to attempt to hedge against price movements in one or more particular securities positions that the Fund owns or intends to acquire and in certain instances to hedge against market sectors in which the Fund has invested or expects to invest. In addition, the Fund’s ability to use these instruments may be limited by tax considerations and may also increase the amount of taxes payable by shareholders.

The successful use of the investment practices described above with respect to futures contracts, options on futures contracts, forward contracts, options on securities and indices, options on foreign currencies and swaps, including credit default swaps, and swap-related products draws upon skills and experience which are different from those needed to select the other instruments in which the Fund may invest. Should interest or exchange rates, or the prices of securities or financial indices move in an unexpected manner, the Fund may not achieve the desired benefits of the foregoing instruments or may realize losses and thus be in a worse position than if such strategies had not been used. In general, these investment practices may increase the volatility of the Fund and even a small investment in derivatives may magnify or otherwise increase investment losses to the Fund. Unlike many exchange-traded futures contracts and options on futures contracts, there are no daily price fluctuation limits with respect to options on currencies, forward contracts and other negotiated or over-the-counter instruments, and adverse market movements could therefore continue to an unlimited extent over a period of time. In addition, the correlation between movements in the price of the securities and currencies hedged or used for cover will not be perfect and could produce unanticipated losses.

The Fund’s ability to dispose of its positions in the foregoing instruments will depend on the availability of liquid markets in the instruments or, in the absence of a liquid market, the ability and willingness of the other party to the transaction to enter into a closing transaction. Markets in a number of the instruments are relatively new and still developing, and it is impossible to predict the amount of trading interest that may exist in those instruments in the future. Therefore, there is no assurance that any position can be disposed of at a time and price that is favorable to the Fund. The purchase and sale of futures contracts and the exercise of options may cause the Fund to sell or purchase related investments, thus increasing its portfolio turnover rate. Brokerage

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commissions paid by the Fund with respect to options, futures and other derivative instruments may be higher than those that would apply to direct purchases or sales of the underlying instruments.

Particular risks exist with respect to the use of each of the foregoing instruments and could result in such adverse consequences to the Fund as: the possible loss of the entire premium paid for an option bought by the Fund; the inability of the Fund, as the writer of a covered call option, to benefit from the appreciation of the underlying securities above the exercise price of the option; and the possible need to defer closing out positions in certain instruments to avoid adverse tax consequences. As a result, no assurance can be given that the Fund will be able to use those instruments effectively for their intended purposes.

In connection with certain of its derivatives transactions, the Fund might be required to maintain assets as cover, maintain segregated accounts or make margin payments to ensure that the Fund will be able to meet its obligations pursuant to these instruments. If the Fund were unable to close out its positions in these instruments, it might be required to continue to maintain such assets or accounts or make such payments until the position expired or matured. These requirements could impede implementation of the Fund’s investment policies or its ability to meet redemption requests or other current obligations.

Additional Risks of Options on Foreign Currencies, Forward Contracts and Foreign Instruments. Unlike transactions entered into by the Fund in futures contracts, options on foreign currencies and forward contracts are not traded on contract markets regulated by the CFTC or (with the exception of certain foreign currency options) by the SEC. Such instruments are traded through financial institutions acting as market-makers, although foreign currency options are also traded on certain national securities exchanges, such as the Philadelphia Stock Exchange and the Chicago Board Options Exchange, subject to SEC regulation.

Options on currencies may be traded over-the-counter. In an over-the-counter trading environment, many of the protections afforded to exchange participants will not be available, as discussed above. Although the buyer of an option cannot lose more than the amount of the premium plus related transaction costs, this entire amount could be lost. Moreover, an option writer and a buyer or seller of futures or forward contracts could lose amounts substantially in excess of any premium received or initial margin or collateral posted due to the potential additional margin and collateral requirements associated with such positions.

Options on foreign currencies traded on national securities exchanges are within the jurisdiction of the SEC, as are other securities traded on such exchanges. As a result, many of the protections provided to traders on organized exchanges will be available with respect to such transactions. In particular, all foreign currency option positions entered into on a national securities exchange are cleared and guaranteed by the Office of the Comptroller of the Currency (the “OCC”), thereby reducing the risk of counterparty default. Further, a liquid secondary market in options traded on a national securities exchange may be more readily available than in the over-the-counter market, potentially permitting the Fund to liquidate open positions at a profit prior to exercise or expiration, or to limit losses in the event of adverse market movements.

The purchase and sale of exchange-traded foreign currency options, however, is subject to the risks of the availability of a liquid secondary market described above, as well as the risks regarding adverse market movements, margining of options written, the nature of the foreign currency market, possible intervention by governmental authorities and the effects of other political and economic events.

In addition, exchange-traded options on foreign currencies involve certain risks not presented by the over-the-counter market. For example, exercise and settlement of such options must be made exclusively through the OCC, which has established banking relationships in applicable foreign countries for this purpose. As a result, the OCC may, if it determines that foreign government restrictions or taxes would prevent the orderly settlement of foreign currency option exercises, or would result in undue burdens on the OCC or its clearing member, impose special procedures on exercise and settlement. These include such things as technical changes in the mechanics of delivery of currency, the fixing of dollar settlement prices or prohibitions on exercise.

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In addition, options on U.S. government securities, futures contracts, options on futures contracts, forward contracts and options on foreign currencies may be traded on foreign exchanges and over-the-counter in foreign countries. Such transactions are subject to the risk of governmental actions affecting trading in or the prices of foreign currencies or securities. The value of such positions also could be adversely affected by: (i) other complex foreign political and economic factors; (ii) less availability than that available in the United States of data on which to make trading decisions; (iii) delays in the Fund’s ability to act upon economic events occurring in foreign markets during non-business hours in the United States; (iv) the imposition of different exercise and settlement terms and procedures and margin requirements than in the United States; and (v) low trading volume.

FOREIGN INVESTMENTS

The Fund may invest in foreign securities through the purchase of securities of foreign issuers or of American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and Fiduciary Depositary Receipts (“FDRs”) or other securities representing underlying shares of foreign companies. Generally, ADRs, in registered form, are designed for use in U.S. securities markets and EDRs, GDRs and FDRs, in bearer form, are designed for use in European and global securities markets. ADRs are receipts typically issued by a U.S. bank or trust company evidencing ownership of the underlying securities. EDRs, GDRs and FDRs are European, global and fiduciary receipts, respectively, evidencing a similar arrangement.

Because foreign companies are not subject to uniform accounting, auditing and financial reporting standards, practices and requirements comparable to those applicable to U.S. companies, there may be less publicly available information about a foreign company than about a U.S. company. Volume and liquidity in most foreign markets are less than in the U.S., and securities of many foreign companies are less liquid and more volatile than securities of comparable U.S. companies. The less liquid a market, the more difficult it may be for the Fund to accurately price its portfolio securities or to dispose of such securities at the times determined by a sub-adviser to be appropriate. The risks associated with reduced liquidity may be particularly acute in situations in which the Fund’s operations require cash, such as in order to meet redemptions and to pay its expenses. Fixed commissions on foreign securities exchanges are generally higher than negotiated commissions on U.S. exchanges, although the Fund will endeavor to achieve the most favorable net results on portfolio transactions. There is generally less government supervision and regulation of foreign securities exchanges, brokers, dealers and listed companies than in the U.S., thus increasing the risk of delayed settlements of portfolio transactions or loss of certificates for portfolio securities.

The Fund may be subject to taxes, including withholding taxes imposed by certain non-U.S. countries on income (possibly including, in some cases, capital gains) earned with respect to the Fund’s investments in such countries. These taxes will reduce the return achieved by the Fund. Treaties between the U.S. and such countries may reduce the otherwise applicable tax rates.

Additionally, the operating expenses of a fund making foreign investments can be expected to be higher than those of an investment company investing exclusively in U.S. securities, since the costs of investing in foreign securities are higher than the costs of investing exclusively in U.S. securities. Custodian services and other costs such as valuation costs and communication costs relating to investment in international securities markets generally are more expensive than in the U.S.

The Fund also may invest in notes and similar linked securities (e.g., zero strike warrants and debt), which are derivative instruments issued by a financial institution or special purpose entity the performance and price of which depends on the performance and price of a corresponding foreign security, securities, market or index. Upon redemption or maturity, the principal amount or redemption amount is payable based on the price level of the linked security, securities, market or index at the time of redemption or maturity, or is exchanged for corresponding shares of common stock or units of the linked security. These securities are generally subject to the same risks as direct holdings of securities of foreign issuers and non-dollar securities, including currency risk and the risk that the amount payable at maturity or redemption will be less than the principal amount of the

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derivative instrument because the linked security, securities, market or index has declined. Also, these securities are subject to counterparty risk, which is the risk that the company issuing such a linked security may fail to pay the full amount due at maturity or redemption. The Fund could have difficulty disposing of these securities because there may be restrictions on redemptions and there may be no market or a thin trading market in such securities.

Foreign markets also have different clearance and settlement procedures; and in certain markets, there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. Such delays in settlement could result in temporary periods when a portion of the assets of a fund investing in foreign markets is uninvested and no return is earned thereon. The inability of such a fund to make intended security purchases due to settlement problems could cause the fund to miss attractive investment opportunities. Losses to the Fund due to subsequent declines in the value of portfolio securities, or losses arising out of an inability to fulfill a contract to sell such securities, could result in potential liability to the Fund. In addition, with respect to certain foreign countries, there is the possibility of expropriation or confiscatory taxation, political or social instability, or diplomatic developments which could affect the investments in those countries. Moreover, individual foreign economies may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross national product, rate of inflation, capital reinvestment, resource self-sufficiency and balance of payments position.

In many instances, foreign debt securities may provide higher yields than securities of domestic issuers which have similar maturities and quality. Under certain market conditions these investments may be less liquid than the securities of U.S. corporations and are certainly less liquid than securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. Finally, in the event of a default of any such foreign debt obligations, it may be more difficult to obtain or to enforce a judgment against the issuers of such securities.

If a security is denominated in foreign currency, the value of the security to the Fund will be affected by changes in currency exchange rates and in exchange control regulations, and costs will be incurred in connection with conversions between currencies. Currency risks generally increase in lesser developed markets. Exchange rate movements can be large and can endure for extended periods of time, affecting either favorably or unfavorably the value of the Fund’s assets. The value of the assets of the Fund as measured in U.S. dollars may be affected favorably or unfavorably by changes in foreign currency exchange rates and exchange control regulations.

A change in the value of any foreign currency against the U.S. dollar will result in a corresponding change in the U.S. dollar value of securities denominated in that currency. Such changes will also affect the income and distributions to shareholders of a fund investing in foreign markets. In addition, although the Fund will receive income on foreign securities in such currencies, it will be required to compute and distribute income in U.S. dollars. Therefore, if the exchange rate for any such currency declines materially after income has been accrued and translated into U.S. dollars, the Fund could be required to liquidate portfolio securities to make required distributions. Similarly, if an exchange rate declines between the time the Fund incurs expenses in U.S. dollars and the time such expenses are paid, the amount of such currency required to be converted into U.S. dollars in order to pay such expenses in U.S. dollars will be greater.

ADRs, which are traded in the United States on exchanges or over-the-counter, are issued by domestic banks. ADRs represent the right to receive securities of foreign issuers deposited in a domestic bank or a correspondent bank. ADRs do not eliminate all the risk inherent in investing in foreign issuers’ stock. However, by investing in ADRs rather than directly in foreign issuers’ stock, the Fund can avoid currency risks during the settlement period for either purchase or sales.

In general, there is a large, liquid market in the United States for many ADRs. The information available for ADRs is subject to the accounting, auditing and financial reporting standards of the domestic market or exchange on which they are traded, which standards are more uniform and more exacting than those to which many foreign issuers may be subject. Certain ADRs, typically those denominated as unsponsored, require the holders thereof to bear most of the costs of such facilities, while issuers of sponsored facilities normally pay more of the costs

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thereof. The depositary of an unsponsored facility frequently is under no obligation to distribute shareholder communications received from the issuer of the deposited securities or to pass through the voting rights to facility holders with respect to the deposited securities, whereas the depositary of a sponsored facility typically distributes shareholder communications and passes through the voting rights.

Sovereign Debt Securities. The Fund may invest in securities issued or guaranteed by any country and denominated in any currency. The obligations of governmental entities have various kinds of government support and include obligations issued or guaranteed by governmental entities with taxing power. These obligations may or may not be supported by the full faith and credit of a government. Debt securities issued or guaranteed by foreign governmental entities have credit characteristics similar to those of domestic debt securities but are subject to the risks attendant to foreign investments, which are discussed above.

The Fund may also purchase securities issued by semi-governmental or supranational agencies such as the Asian Developmental Bank, the International Bank for Reconstruction and Development, the Export-Import Bank and the European Investment Bank. The governmental members, or “stockholders,” usually make initial capital contributions to the supranational entity and in many cases are committed to make additional capital contributions if the supranational entity is unable to repay its borrowings.

Sovereign debt is subject to risks in addition to those relating to non-U.S. investments generally. As a sovereign entity, the issuing government may be immune from lawsuits in the event of its failure or refusal to pay the obligations when due. The debtor’s willingness or ability to repay in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its non-U.S. reserves, the availability of sufficient non-U.S. exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, the sovereign debtor’s policy toward principal international lenders and the political constraints to which the sovereign debtor may be subject. Sovereign debtors also may be dependent on expected disbursements from foreign governments or multinational agencies, the country’s access to trade and other international credits, and the country’s balance of trade. Some emerging market sovereign debtors have in the past rescheduled their debt payments or declared moratoria on payments, and similar occurrences may happen in the future. There is no bankruptcy proceeding by which sovereign debt on which governmental entities have defaulted may be collected in whole or in part.

Emerging Markets. The Fund may invest in securities of emerging market countries. Emerging market countries may include, without limitation, any country which, at the time of investment, is categorized by the World Bank in its annual categorization as middle- or low-income. These securities may be U.S. dollar denominated or non- U.S. dollar denominated and include: (a) debt obligations issued or guaranteed by foreign national, provincial, state, municipal or other governments with taxing authority or by their agencies or instrumentalities, including Brady Bonds; (b) debt obligations of supranational entities; (c) debt obligations (including dollar and non-dollar denominated) and other debt securities of foreign corporate issuers; and (d) non-dollar denominated debt obligations of U.S. corporate issuers. The Fund may also invest in securities denominated in currencies of emerging market countries. There is no minimum rating criteria for the Fund’s investments in such securities.

Emerging market and certain other non-U.S. countries may be subject to a greater degree of economic, political and social instability. Such instability may result from, among other things: (i) authoritarian governments or military involvement in political and economic decision making; (ii) popular unrest associated with demands for improved economic, political and social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring countries; and (v) ethnic, religious and racial disaffection and conflict. Such economic, political and social instability could significantly disrupt the financial markets in such countries and the ability of the issuers in such countries to repay their obligations. Investing in emerging countries also involves the risk of expropriation, nationalization, confiscation of assets and property or the imposition of restrictions on foreign investments and on repatriation of capital invested. In the event of such expropriation, nationalization or other confiscation in any emerging country, the Fund could lose its entire investment in that country. Certain emerging market countries restrict or control foreign investment in their securities markets to varying degrees.

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These restrictions may limit the Fund’s investment in those markets and may increase the expenses of the Fund. In addition, the repatriation of both investment income and capital from certain markets in the region is subject to restrictions such as the need for certain governmental consents. Even where there is no outright restriction on repatriation of capital, the mechanics of repatriation may affect certain aspects of the Fund’s operation. Economies in individual non-U.S. countries may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross domestic product, rates of inflation, currency valuation, capital reinvestment, resource self-sufficiency and balance of payments positions. Many non-U.S. countries have experienced substantial, and in some cases extremely high, rates of inflation for many years. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, very negative effects on the economies and securities markets of certain emerging market countries. Economies in emerging market countries generally depend heavily upon international trade and, accordingly, have been and may continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. The economies, securities and currency markets of many emerging market countries have experienced significant disruption and declines. There can be no assurances that these economic and market disruptions will not continue.

The Fund may invest in Brady Bonds, which are securities created through the exchange of existing commercial bank loans to sovereign entities for new obligations in connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico, Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, and Venezuela.

Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar) and are actively traded in the over-the-counter secondary market. Brady Bonds are not considered to be U.S. Government securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed-rate par bonds or floating-rate discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero coupon bonds having the same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one-year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed-rate bonds, is equal to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter. Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity (these uncollateralized amounts constitute the “residual risk”).

Most Mexican Brady Bonds issued to date have principal repayments at final maturity fully collateralized by U.S. Treasury zero coupon bonds (or comparable collateral denominated in other currencies) and interest coupon payments collateralized on an 18-month rolling-forward basis by funds held in escrow by an agent for the bondholders. A significant portion of the Venezuelan Brady Bonds and the Argentine Brady Bonds issued to date have principal repayments at final maturity collateralized by U.S. Treasury zero coupon bonds (or comparable collateral denominated in other currencies) and/or interest coupon payments collateralized on a 14-month (for Venezuela) or 12-month (for Argentina) rolling-forward basis by securities held by the Federal Reserve Bank of New York as collateral agent.

Brady Bonds involve various risk factors including residual risk and the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady Bonds. There can be no assurance that Brady Bonds in which the Fund may invest will not be subject to restructuring arrangements or to requests for new credit, which may cause the Fund to suffer a loss of interest or principal on any of its holdings.

SHORT SALES

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The Fund may make short sales “against the box.” In this type of short sale, at the time of the sale, the Fund owns or has the immediate and unconditional right to acquire the identical security at no additional cost. In the event that the Fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the Fund would forego the potential realization of the increased value of the shares sold short.

OTHER INVESTMENT COMPANIES

Subject to applicable investment restrictions, the Fund may invest in securities issued by other investment companies as permitted under the 1940 Act. The Fund may indirectly bear a portion of any investment advisory fees and expenses and distribution (12b-1) fees paid by funds in which it invests, in addition to the advisory fees and expenses paid by the Fund. Investments in other investment companies are subject to the risks of the securities in which those investment companies invest.

Exchange-Traded Funds (“ETFs”). Subject to limitations under the 1940 Act, the Fund may invest in shares of investment companies known as ETFs. For example, the Fund may invest in S&P Depositary Receipts, or “SPDRs.” SPDRs are securities that represent ownership in a long-term unit investment trust that holds a portfolio of common stocks designed to track the performance of the S&P 500 Index. A fund investing in a SPDR would be entitled to the dividends that accrue to the S&P 500 stocks in the underlying portfolio, less trust expenses. Investing in these securities may result in duplication of certain fees and expenses paid by these securities in addition to the advisory fees and expenses paid by the Fund. Other examples of ETFs in which the Fund may invest are Dow Industrial Average Model New Deposit Shares (“DIAMONDS”) (interests in a portfolio of securities that seeks to track the performance of the Dow Jones Industrial Average), WEBS or World Equity Benchmark Shares (interests in a portfolio of securities that seeks to track the performance of a benchmark index of a particular foreign country’s stocks), and the Nasdaq-100 Trust or QQQ (interests in a portfolio of securities of the largest and most actively traded non-financial companies listed on the NASDAQ Stock Market).

U.S. GOVERNMENT SECURITIES

Examples of the types of U.S. government securities that the Fund may hold include direct obligations of the U.S. Treasury, the obligations of the Federal Housing Administration, Farmers Home Administration, Small Business Administration, General Services Administration, Central Bank for Cooperatives, Federal Farm Credit Banks, Federal Home Loan Bank, Federal Intermediate Credit Banks, Federal Land Banks and Maritime Administration. U.S. government securities may be supported by the full faith and credit of the U.S. government (such as securities of the Small Business Administration); by the right of the issuer to borrow from the Treasury (such as securities of the Federal Home Loan Bank); by the discretionary authority of the U.S. government to purchase the agency’s obligations (such as securities of the Federal National Mortgage Association); or only by the credit of the issuing agency.

Obligations guaranteed by U.S. government agencies or government-sponsored entities include issues by non-government-sponsored entities (like financial institutions) that carry direct guarantees from U.S. government agencies or government sponsored entities as part of government initiatives in response to the market crisis or otherwise. In the case of obligations not backed by the full faith and credit of the United States, the Fund must look principally to the agency or instrumentality issuing or guaranteeing the obligation for ultimate repayment and may not be able to assert a claim against the United States itself in the event the agency or instrumentality does not meet its commitments. Neither the U.S. government nor any of its agencies or instrumentalities guarantees the market value of the securities they issue. Therefore, the market value of such securities will fluctuate in response to changes in interest rates.

Exchange Rate-Related U.S. Government Securities. To the extent permitted by the Fund’s investment policies, the Fund may invest in U.S. government securities for which the principal repayment at maturity, while paid in U.S. dollars, is determined by reference to the exchange rate between the U.S. dollar and the currency of

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one or more foreign countries (“Exchange Rate-Related Securities”). The interest payable on these securities is denominated in U.S. dollars, is not subject to foreign currency risk and, in most cases, is paid at rates higher than most other U.S. government securities in recognition of the foreign currency risk component of Exchange Rate-Related Securities. Exchange Rate-Related Securities are issued in a variety of forms, depending on the structure of the principal repayment formula. The principal repayment formula may be structured so that the security holder will benefit if a particular foreign currency to which the security is linked is stable or appreciates against the U.S. dollar. In the alternative, the principal repayment formula may be structured so that the securityholder benefits if the U.S. dollar is stable or appreciates against the linked foreign currency. Finally, the principal repayment formula can be a function of more than one currency and, therefore, be designed as a combination of those forms.

Investments in Exchange Rate-Related Securities entail special risks. There is the possibility of significant changes in rates of exchange between the U.S. dollar and any foreign currency to which an Exchange Rate-Related Security is linked. If currency exchange rates do not move in the direction or to the extent anticipated by the sub-adviser at the time of purchase of the security, the amount of principal repaid at maturity might be significantly below the par value of the security, which might not be offset by the interest earned by the Fund over the term of the security. The rate of exchange between the U.S. dollar and other currencies is determined by the forces of supply and demand in the foreign exchange markets. These forces are affected by the international balance of payments and other economic and financial conditions, government intervention, speculation and other factors. The imposition or modification of foreign exchange controls by the U.S. or foreign governments or intervention by central banks could also affect exchange rates. Finally, there is no assurance that sufficient trading interest to create a liquid secondary market will exist for a particular Exchange Rate-Related Security because of conditions in the debt and foreign currency markets. Illiquidity in the forward foreign exchange market and the high volatility of the foreign exchange market may from time to time combine to make it difficult to sell an Exchange Rate-Related Security prior to maturity without incurring a significant price loss.

MUNICIPAL OBLIGATIONS

Municipal securities generally include debt obligations (bonds, notes or commercial paper) issued by or on behalf of any of the 50 states and their political subdivisions, agencies and public authorities, certain other governmental issuers (such as Puerto Rico, the U.S. Virgin Islands and Guam) or other qualifying issuers, participation or other interests in these securities and other related investments. The interest paid on municipal securities is excluded from gross income for regular federal income tax purposes, although it may be subject to federal alternative minimum tax. Municipal securities are issued to obtain funds for various public purposes, including the construction of a wide range of public facilities, such as airports, bridges, highways, housing, hospitals, mass transportation, schools, streets, water and sewer works, gas, and electric utilities. They may also be issued to refund outstanding obligations, to obtain funds for general operating expenses, or to obtain funds to loan to other public institutions and facilities and in anticipation of the receipt of revenue or the issuance of other obligations.

The Fund may invest in various types of municipal obligations, including, without limitation, the following:

Municipal Bonds. Municipal bonds generally are classified as general obligation or revenue bonds. General obligation bonds are secured by the issuer’s pledge of its full faith, credit and unlimited taxing power for the payment of principal and interest. Revenue bonds are payable only from the revenues generated by a particular facility or class of facility, or in some cases from the proceeds of a special excise tax or specific revenue source.

Private Activity Bonds. Private activity bonds are issued by or on behalf of public authorities to provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing construction of privately operated industrial facilities, such as warehouse, office, plant and storage facilities and environmental and pollution control facilities. Such bonds are secured primarily by revenues derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a parent company or otherwise secured. Private activity bonds generally are not secured by a pledge of the taxing power of the issuer of such

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bonds. Therefore, repayment of such bonds generally depends on the revenue of a private entity. The continued ability of an entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by many factors, including the size of the entity, its capital structure, demand for its products or services, competition, general economic conditions, government regulation and the entity’s dependence on revenues for the operation of the particular facility being financed.

Interest income on certain types of private activity bonds issued after August 7, 1986 to finance non-governmental activities is a specific tax preference item for purposes of the federal individual and corporate alternative minimum tax (“AMT”). Individual and corporate shareholders may be subject to a federal AMT to the extent that the Fund’s dividends are derived from interest on those bonds. Dividends derived from interest income on tax-exempt municipal obligations are a component of the “current earnings” adjustment item for purposes of the federal corporate AMT.

Industrial Development Bonds. Industrial development bonds (“IDBs”) are issued by public authorities to obtain funds to provide financing for privately-operated facilities for business and manufacturing, housing, sports, convention or trade show facilities, airport, mass transit, port and parking facilities, air or water pollution control facilities, and certain facilities for water supply, gas, electricity or sewerage or solid waste disposal. Although IDBs are issued by municipal authorities, the payment of principal and interest on IDBs is dependent solely on the ability of the user of the facilities financed by the bonds to meet its financial obligations and the pledge, if any, of the real and personal property being financed as security for such payments. IDBs are considered municipal securities if the interest paid is exempt from regular federal income tax. Interest earned on IDBs may be subject to the federal AMT.

Municipal Notes. Municipal notes are short-term debt obligations issued by municipalities which normally have a maturity at the time of issuance of six months to three years. Such notes include tax anticipation notes, bond anticipation notes, revenue anticipation notes and project notes. Notes sold in anticipation of collection of taxes, a bond sale or receipt of other revenues are normally obligations of the issuing municipality or agency.

Municipal Commercial Paper. Municipal commercial paper is short-term debt obligations issued by municipalities. Although done so infrequently, municipal commercial paper may be issued at a discount (sometimes referred to as Short-Term Discount Notes). These obligations are issued to meet seasonal working capital needs of a municipality or interim construction financing and are paid from a municipality’s general revenues or refinanced with long-term debt. Although the availability of municipal commercial paper has been limited, from time to time the amounts of such debt obligations offered have increased, and this increase may continue.

Participation Interests. A participation interest in municipal obligations (such as private activity bonds and municipal lease obligations) gives the Fund an undivided interest in the municipal obligation in the proportion that the Fund’s participation interest bears to the total principal amount of the municipal obligation. Participation interests in municipal obligations may be backed by an irrevocable letter of credit or guarantee of, or a right to put to, a bank (which may be the bank issuing the participation interest, a bank issuing a confirming letter of credit to that of the issuing bank, or a bank serving as agent of the issuing bank with respect to the possible repurchase of the participation interest) or insurance policy of an insurance company. The Fund has the right to sell the participation interest back to the institution or draw on the letter of credit or insurance after a specified period of notice, for all or any part of the full principal amount of the Fund’s participation in the security, plus accrued interest.

Issuers of participation interests will retain a service and letter of credit fee and a fee for providing the liquidity feature, in an amount equal to the excess of the interest paid on the instruments over the negotiated yield at which the participations were purchased on behalf of the Fund. With respect to insurance, the Fund will attempt to have the issuer of the participation interest bear the cost of the insurance, although the Fund may also purchase insurance, in which case the cost of insurance will be an expense of the Fund. Although participation interests may be sold, the Fund intends to hold them until maturity, except under the circumstances stated above.

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Participation interests may include municipal lease obligations. Purchase of a participation interest may involve the risk that the Fund will not be deemed to be the owner of the underlying municipal obligation for purposes of the ability to claim tax exemption of interest paid on that municipal obligation.

Variable Rate Obligations. The interest rate payable on a variable rate municipal obligation is adjusted either at predetermined periodic intervals or whenever there is a change in the market rate of interest upon which the interest rate payable is based. A variable rate obligation may include a demand feature pursuant to which the Fund would have the right to demand prepayment of the principal amount of the obligation prior to its stated maturity. The issuer of the variable rate obligation may retain the right to prepay the principal amount prior to maturity.

Municipal Lease Obligations. Municipal lease obligations may take the form of a lease, an installment purchase or a conditional sales contract. Municipal lease obligations are issued by state and local governments and authorities to acquire land, equipment and facilities such as state and municipal vehicles, telecommunications and computer equipment, and other capital assets. Interest payments on qualifying municipal leases are exempt from federal income taxes. The Fund may purchase these obligations directly, or the Fund may purchase participation interests in such obligations. Municipal leases are generally subject to greater risks than general obligation or revenue bonds. State laws set forth requirements that states or municipalities must meet in order to issue municipal obligations; and such obligations may contain a covenant by the issuer to budget for, appropriate, and make payments due under the obligation. However, certain municipal lease obligations may contain “non-appropriation” clauses which provide that the issuer is not obligated to make payments on the obligation in future years unless funds have been appropriated for this purpose each year. Accordingly, such obligations are subject to “non-appropriation” risk. While municipal leases are secured by the underlying capital asset, it may be difficult to dispose of such assets in the event of non-appropriation or other default.

Residual Interest Bonds. The Fund may invest in Residual Interest Bonds (sometimes referred to as inverse floaters) (“RIBs”), which brokers create by depositing a Municipal Bond in a trust. The trust in turn issues a variable rate security and RIBs. The interest rate on the short-term component is reset by an index or auction process normally every seven to 35 days, while the RIB holder receives the balance of the income from the underlying Municipal Bond less an auction fee. Therefore, rising short-term interest rates result in lower income for the RIB, and vice versa. An investment in RIBs typically will involve greater risk than an investment in a fixed rate bond. RIBs have interest rates that bear an inverse relationship to the interest rate on another security or the value of an index. Because increases in the interest rate on the other security or index reduce the residual interest paid on a RIB, the value of a RIB is generally more volatile than that of a fixed rate bond. RIBs have interest rate adjustment formulas that generally reduce or, in the extreme, eliminate the interest paid to the Fund when short-term interest rates rise, and increase the interest paid to the Fund when short-term interest rates fall. RIBs have varying degrees of liquidity that approximate the liquidity of the underlying bond(s), and the market price for these securities is volatile. RIBs can be very volatile and may be less liquid than other Municipal Bonds of comparable maturity. These securities will generally underperform the market of fixed rate bonds in a rising interest rate environment, but tend to outperform the market of fixed rate bonds when interest rates decline or remain relatively stable. Although volatile, RIBs typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality, coupon, call provisions and maturity. To the extent permitted by the Fund’s investment objectives and general investment policies, the Fund may invest in RIBs without limitation.

In a transaction in which the Fund purchases a RIB from a trust, and the underlying Municipal Bond was held by the Fund prior to being deposited into the trust, the Fund treats the transaction as a secured borrowing for financial reporting purposes. As a result, the Fund will incur a non-cash interest expense with respect to interest paid by the trust on the variable rate securities, and will recognize additional interest income in an amount directly corresponding to the non-cash interest expense. Therefore, the Fund’s net asset value per share and performance are not affected by the non-cash interest expense. This accounting treatment does not apply to RIBs acquired by the Fund where the Fund did not previously own the underlying Municipal Bond.

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Tax-exempt Commercial Paper. Tax-exempt commercial paper is a short-term obligation with a stated maturity of 270 days or less. It is issued by state and local governments or their agencies to finance seasonal working capital needs or as short term financing in anticipation of longer term financing. While tax-exempt commercial paper is intended to be repaid from general revenues or refinanced, it frequently is backed by a letter of credit, lending arrangement, note repurchase agreement or other credit facility agreement offered by a bank or financial institution.

Custodial Receipts and Certificates. Custodial receipts or certificates underwritten by securities dealers or banks evidence ownership of future interest payments, principal payments or both on certain municipal obligations. The underwriter of these certificates or receipts typically purchases municipal obligations and deposits the obligations in an irrevocable trust or custodial account with a custodian bank, which then issues receipts or certificates that evidence ownership of the periodic unmatured coupon payments and the final principal payment on the obligations. Although under the terms of a custodial receipt, the Fund would be typically authorized to assert its rights directly against the issuer of the underlying obligation, the Fund could be required to assert through the custodian bank those rights as may exist against the underlying issuer. Thus, in the event the underlying issuer fails to pay principal and/or interest when due, the Fund may be subject to delays, expenses and risks that are greater than those that would have been involved if the Fund had purchased a direct obligation of the issuer. In addition, in the event that the trust or custodial account in which the underlying security has been deposited is determined to be an association taxable as a corporation, instead of a non-taxable entity, the yield on the underlying security would be reduced in recognition of any taxes paid.

Additional Risks Relating Particularly to Municipal Obligations. The Code imposes certain continuing requirements on issuers of tax-exempt bonds regarding the use, expenditure and investment of bond proceeds and the payment of rebates to the U.S. government. Failure by the issuer to comply after the issuance of tax-exempt bonds with certain of these requirements could cause interest on the bonds to become includable in gross income retroactive to the date of issuance.

From time to time, proposals have been introduced before Congress for the purpose of restricting or eliminating the federal income tax exemption for interest on municipal obligations, and similar proposals may be introduced in the future. In addition, the federal income tax exemption has been, and may in the future be, the subject of litigation. If one of these proposals were enacted, the availability of tax-exempt obligations for investment by the Fund and the value of the Fund’s investments would be affected.

Opinions relating to the validity of municipal obligations and to the exclusion of interest thereon from gross income for regular federal income tax purposes are rendered by bond counsel to the respective issuers at the time of issuance. The Fund and its service providers will rely on such opinions and will not review the proceedings relating to the issuance of municipal obligations or the bases for such opinions.

Information about the financial condition of issuers of municipal obligations may be less available than about corporations whose securities are publicly traded.

The Fund may invest in taxable municipal obligations. The market for taxable municipal obligations is relatively small, which may result in a lack of liquidity and in price volatility of those securities. Interest on taxable municipal obligations is includable in gross income for regular federal income tax purposes. While interest on taxable municipal obligations may be exempt from personal taxes imposed by the state within which the obligation is issued, such interest will nevertheless generally be subject to all other state and local income and franchise taxes.

WHEN-ISSUED, DELAYED SETTLEMENT AND FORWARD DELIVERY SECURITIES

Securities may be purchased and sold on a “when-issued,” “delayed settlement” or “forward (delayed) delivery” basis. “When-issued” or “forward delivery” refers to securities whose terms are available, and for which a market exists, but which are not available for immediate delivery. When-issued or forward delivery transactions

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may be expected to occur a month or more before delivery is due. The Fund may engage in when-issued transactions to obtain what is considered to be an advantageous price and yield at the time of the transaction. When the Fund engages in when-issued or forward delivery transactions, it will do so consistent with its investment objective and policies and not for the purpose of investment leverage (although leverage may result).

“Delayed settlement” is a term used to describe settlement of a securities transaction in the secondary market which will occur sometime in the future. No payment or delivery is made by the Fund until it receives payment or delivery from the other party for any of the above transactions. The Fund will segregate with its custodian cash, U.S. government securities or other liquid assets at least equal to the value or purchase commitments until payment is made. The segregated securities will either mature or, if necessary, be sold on or before the settlement date. This may result in the realization of capital gains or losses, which are generally subject to federal income tax when distributed to the Fund’s shareholders. Typically, no income accrues on securities purchased on a delayed delivery basis prior to the time delivery of the securities is made, although the Fund may earn income on securities it has segregated to collateralize its delayed delivery purchases.

New issues of stocks and bonds, private placements and U.S. government securities may be sold in this manner. At the time of settlement, the market value and/or the yield of the security may be more or less than the purchase price. The Fund bears the risk of such market value fluctuations. These transactions also involve the risk that the other party to the transaction may default on its obligation to make payment or delivery. As a result, the Fund may be delayed or prevented from completing the transaction and may incur additional costs as a consequence of the delay.

ZERO-COUPON, PAY-IN-KIND AND STEP-COUPON SECURITIES

Subject to its investment restrictions, the Fund may invest in zero-coupon, pay-in-kind and step-coupon securities. Zero-coupon bonds are issued and traded at a discount from their face value. They do not entitle the holder to any periodic payment of interest prior to maturity. Step-coupon bonds trade at a discount from their face value and pay coupon interest. The coupon rate is low for an initial period and then increases to a higher coupon rate thereafter. The discount from the face amount or par value depends on the time remaining until cash payments begin, prevailing interest rates, liquidity of the security and the perceived credit quality of the issuer. Pay-in-kind bonds give the issuer an option to pay cash at a coupon payment date or give the holder of the security a similar bond with the same coupon rate and a face value equal to the amount of the coupon payment that would have been made. The Fund may also invest in “strips,” which are debt securities that are stripped of their interest after the securities are issued, but otherwise are comparable to zero-coupon bonds.

Federal income tax law requires holders of zero-coupon securities and step-coupon securities to report the portion of the original issue discount on such securities that accrue that year as interest income, even though the holders receive no cash payments of interest during the year. In order to qualify for treatment as a “regulated investment company” under the Internal Revenue Code of 1986, as amended (“Code”), a fund must distribute substantially all of its investment company taxable income (computed without regard to the deduction for dividends paid), including the original issue discount accrued on zero-coupon or step-coupon bonds. Because it will not receive cash payments on a current basis in respect of accrued original-issue discount on zero-coupon bonds or step-coupon bonds during the period before interest payments begin, in some years the Fund may have to distribute cash obtained from other sources in order to satisfy the distribution requirements under the Code. The Fund might obtain such cash from selling other portfolio holdings. These actions may reduce the assets to which fund expenses could be allocated and may reduce the rate of return for the Fund. In some circumstances, such sales might be necessary in order to satisfy cash distribution requirements even though investment considerations might otherwise make it undesirable for the Fund to sell the securities at the time.

Generally, the market prices of zero-coupon bonds and strip securities are more volatile than the prices of securities that pay interest periodically in cash and they are likely to respond to changes in interest rates to a greater degree than other types of debt securities having similar maturities and credit quality.

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INVESTMENTS IN THE REAL ESTATE INDUSTRY AND REAL ESTATE INVESTMENT TRUSTS (“REITS”)

REITs are pooled investment vehicles which invest primarily in income producing real estate, or real estate related loans or interests. REITs are generally classified as equity REITs, mortgage REITs, or hybrid REITs.

Equity REITs invest the majority of their assets directly in real property and derive income primarily from the collection of rents. Equity REITs can also realize capital gains by selling properties that have appreciated in value. Mortgage REITs invest the majority of their assets in real estate mortgages and derive income from the collection of interest payments. Hybrid REITs invest their assets in both real property and mortgages. REITs are not taxed on income distributed to policyowners provided they comply with several requirements of the Code.

Investments in the real estate industry are subject to risks associated with direct investment in real estate. Such risks include, but are not limited to: declining real estate values; risks related to general and local economic conditions; over-building; increased competition for assets in local and regional markets; changes in zoning laws; difficulties in completing construction; changes in real estate value and property taxes; increases in operating expenses or interest rates; changes in neighborhood values or the appeal of properties to tenants; insufficient levels of occupancy; and inadequate rents to cover operating expenses. The performance of securities issued by companies in the real estate industry also may be affected by management of insurance risks, adequacy of financing available in capital markets, the competence of management, changes in applicable laws and governmental regulations (including taxes) and social and economic trends.

REITs also may subject a portfolio to certain risks associated with the direct ownership of real estate. As described above, these risks include, among others: possible declines in the value of real estate; possible lack of availability of mortgage funds; extended vacancies of properties; risks related to general and local economic conditions; overbuilding; increases in competition, property taxes and operating expenses; changes in zoning laws; costs resulting from the clean-up of, liability to third parties for or damages resulting from, environmental problems, or casualty or condemnation losses; uninsured damages from floods, earthquakes or other natural disasters; limitations on and variations in rents; and changes in interest rates.

Investing in REITs involves certain unique risks, in addition to those risks associated with investing in the real estate industry in general. Equity REITs may be affected by changes in the value of the underlying property owned by the REITs, while mortgage REITs may be affected by the quality of any credit extended. REITs are dependent upon management skills, are not diversified, and are subject to risks associated with heavy cash flow dependency, potential default by borrowers, self-liquidation and the possibilities of failing to qualify for the exemption from tax for distributed income under the Code. REITs whose underlying assets are concentrated in properties used by a particular industry, such as health care, are also subject to industry related risks.

REITs (especially mortgage REITs) are also subject to interest rate risks. When interest rates decline, the value of a REIT’s investment in fixed rate obligations can be expected to rise. Conversely, when interest rates rise, the value of a REIT’s investment in fixed rate obligations can be expected to decline. If the REIT invests in adjustable rate mortgage loans the interest rates on which are reset periodically, yields on a REIT’s investments in such loans will gradually align themselves to reflect changes in market interest rates. This causes the value of such investments to fluctuate less dramatically in response to interest rate fluctuations than would investments in fixed rate obligations. REITs may have limited financial resources, may trade less frequently and in a limited volume and may be subject to more abrupt or erratic price movements than larger company securities. Historically, REITs have been more volatile in price than the larger capitalization stocks included in the S&P 500 Index.

INCOME-PRODUCING SECURITIES

Recent market events. The fixed-income markets are experiencing a period of extreme volatility which has negatively impacted market liquidity conditions. Initially, the concerns on the part of market participants were

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focused on the subprime segment of the mortgage-backed securities market. However, these concerns have since expanded to include a broad range of mortgage-and asset-backed and other fixed income securities, including those rated investment grade, the U.S. and international credit and interbank money markets generally, and a wide range of financial institutions and markets, asset classes and sectors. As a result, fixed income instruments are experiencing liquidity issues, increased price volatility, credit downgrades, and increased likelihood of default. Securities that are less liquid are more difficult to value and may be hard to dispose of. Domestic and international equity markets have also been experiencing heightened volatility and turmoil, with issuers that have exposure to the real estate, mortgage and credit markets particularly affected. During times of market turmoil, investors tend to look to the safety of securities issued or backed by the U.S. Treasury, causing the prices of these securities to rise, and the yield to decline. These events and the continuing market upheavals may have an adverse effect on the Fund.

The Fund will purchase defaulted securities only when its sub-adviser believes, based upon analysis of the financial condition, results of operations and economic outlook of an issuer, that there is potential for resumption of income payments and that the securities offer an unusual opportunity for capital appreciation. Notwithstanding the sub-adviser’s belief as to the resumption of income payments, however, the purchase of any security on which payment of interest or dividends is suspended involves a high degree of risk. Such risk includes, among other things, the following:

Financial and Market Risks. Investments in securities that are in default involve a high degree of financial and market risks that can result in substantial, or at times even total, losses. Issuers of defaulted securities may have substantial capital needs and may become involved in bankruptcy or reorganization proceedings. Among the problems involved in investments in such issuers is the fact that it may be difficult to obtain information about the condition of such issuers. The market prices of such securities also are subject to abrupt and erratic movements and above average price volatility, and the spread between the bid and asked prices of such securities may be greater than normally expected.

Disposition of Fund Securities. The Fund generally intends to purchase securities for which the sub-adviser expects an active market to be maintained. Defaulted securities may be less actively traded than other securities making it more difficult to dispose of substantial holdings of such securities at prevailing market prices. The Fund will limit holdings of any such securities to amounts that the sub-adviser believes could be readily sold, and its holdings of such securities would, in any event, be limited so as not to limit the Fund’s ability to readily dispose of securities to meet redemptions.

Other. Defaulted securities require active monitoring and may, at times, require participation in bankruptcy or receivership proceedings on behalf of the Fund.

Other types of income-producing securities that the Fund may purchase include, but are not limited to, the following:

Variable and Floating Rate Obligations. These types of securities are relatively long-term instruments that often carry demand features permitting the holder to demand payment of principal at any time or at specified intervals prior to maturity.

Standby Commitments. These instruments, which are similar to a put, give the Fund the option to obligate a broker, dealer or bank to repurchase a security held by the Fund at a specified price.

Tender Option Bonds. Tender option bonds are relatively long-term bonds that are coupled with the agreement of a third party (such as a broker, dealer or bank) to grant the holders of such securities the option to tender the securities to the institution at periodic intervals.

The Fund will purchase instruments with demand features, standby commitments and tender option bonds primarily for the purpose of increasing the liquidity of its portfolio.

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These investments are subject to credit risk and market risk. Credit risk relates to the party’s ability to make payment upon demand; market risk relates to the fact that the value of the security will be impacted by the rise and fall of interest rates and other market events. Because the Fund may invest in securities backed by banks and other financial institutions, changes in the credit quality of these institutions could cause losses to the Fund and affect its share price.

In the event that a security is rated by different agencies and receives different ratings from these agencies, unless provided otherwise in its prospectus, the Fund will treat the security as being rated in the highest rating category received from an agency. Credit rating criteria is applied at the time the Fund purchases a security and the Fund may choose not to sell securities that are downgraded below investment grade after their purchases. The sub-adviser in its reasonable judgment will determine what rating to assign to unrated securities.

The Fund may invest in distressed securities. Distressed debt securities are debt securities that are purchased in the secondary market and are the subject of bankruptcy proceedings or otherwise in default as to the repayment of principal and/or interest at the time of acquisition by the Fund or are rated in the lower rating categories (Ca or lower by Moody’s and CC or lower by S&P) or which, if unrated, are in the judgment of a sub-adviser of equivalent quality. Distressed securities are speculative and involve substantial risks. Generally, the Fund will invest in distressed securities when the sub-adviser believes they offer significant potential for higher returns or can be exchanged for other securities that offer this potential. However, there can be no assurance that the Fund will achieve these returns or that the issuer will make an exchange offer or adopt a plan of reorganization. The Fund will generally not receive interest payments on the distressed securities and may incur costs to protect its investment. In addition, distressed securities involve the substantial risk that principal will not be repaid. Distressed securities and any securities received in an exchange for such securities may be subject to restrictions on resale.

HIGH-YIELD/HIGH-RISK BONDS

High-yield/high-risk bonds, below-investment-grade securities (commonly known as “junk bonds”) involve significant credit and liquidity concerns and fluctuating yields, and are not suitable for short-term investing. Higher yields are ordinarily available on fixed-income securities which are unrated or are rated in the lower rating categories of recognized rating services such as Moody’s and S&P, but also are predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal in accordance with the terms of the obligations.

Valuation risks. Lower rated bonds also involve the risk that the issuer will not make interest or principal payments when due. In the event of an unanticipated default, a fund owning such bonds would experience a reduction in its income, and could expect a decline in the market value of the securities so affected. Such a fund, furthermore, may incur additional costs in seeking the recovery of the defaulted securities. More careful analysis of the financial condition of each issuer of lower-rated securities is therefore necessary. During an economic downturn or substantial period of rising interest rates, highly leveraged issuers may experience financial stress which would adversely affect their ability to service their principal and interest payment obligations, to meet projected business goals and to obtain additional financing.

The market prices of lower-grade securities are generally less sensitive to interest rate changes than higher-rated investments, but more sensitive to adverse economic or political changes or individual developments specific to the issuer. Periods of economic or political uncertainty and change can be expected to result in volatility of the prices of these securities. Past experience with high-yield securities in a prolonged economic downturn may not provide an accurate indication of future performance during such periods.

Liquidity risks. Lower-rated securities also may have less liquid markets than higher-rated securities, and their liquidity as well as their value may be more severely affected by adverse economic conditions. Adverse publicity and investor perceptions as well as new or proposed laws may also have a greater negative impact on the market for lower rated bonds.

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Unrated securities are not necessarily of lower credit quality than rated securities, but the markets for lower rated and nonrated securities are more limited than those in which higher-rated securities are traded. The existence of limited markets may make it more difficult for the Fund to obtain accurate market quotations for purposes of valuing its securities and calculating its net asset value. Moreover, the lack of a liquid trading market may restrict the availability of securities for the Fund to purchase and may also have the effect of limiting the ability of the Fund to sell securities at their fair value either to meet redemption requests or to respond to changes in the economy or the financial markets. In addition, an economic downturn or increase in interest rates is likely to have a greater negative effect on: (i) the market for lower-rated and nonrated securities; (ii) the value of high-yield debt securities held by the Fund; (iii) the net asset value of the Fund, to the extent that it holds such securities; and (iv) the ability of the bonds’ issuers to repay principal and interest, meet projected business goals and obtain additional financing than on higher-rated securities.

Additional risks of high-yield/high-risk bonds. Lower rated debt obligations also present risks based on payment expectations. If an issuer calls the obligation for redemption, the Fund may have to replace the security with a lower yielding security, resulting in a decreased return for investors. Also, the principal value of bonds moves inversely with movements in interest rates; in the event of rising interest rates, the value of the securities held by the Fund may decline more than a portfolio consisting of higher rated securities. If the Fund experiences unexpected net redemptions, it may be forced to sell its higher rated bonds, resulting in a decline in the overall credit quality of the securities held by the Fund and increasing the exposure of the Fund to the risks of lower rated securities.

Subsequent to its purchase by the Fund, an issue of securities may cease to be rated or its rating may be reduced below the minimum required for purchase by the Fund. Neither event will require sale of these securities by the Fund, but the sub-adviser will consider the event in determining whether the Fund should continue to hold the security.

LENDING OF FUND SECURITIES

The Fund, from time to time, may lend portfolio securities to broker-dealers, banks or institutional borrowers of securities. In accordance with guidelines from the SEC and its staff, the Fund must receive at least 102% collateral (generally 102% for domestic securities and 105% for international securities), in the form of cash or U.S. government securities. This collateral must be valued daily; and should the market value of the loaned securities increase, the borrower must furnish additional collateral to the lender. During the time portfolio securities are on loan, the borrower pays the lender dividends or interest paid on such securities. Loans are subject to termination by the lender or the borrower at any time. While the Fund does not have the right to vote securities on loan, the Fund intends to regain the right to vote if that is considered important with respect to the investment. In the event the borrower defaults on its obligation to the Fund, the Fund could experience delays in recovering its securities, possible capital losses and even loss of rights in the collateral should the borrower fail financially. The Fund will only enter into loan arrangements with broker-dealers, banks or other institutions determined to be creditworthy under guidelines that may be established by the Board of Trustees. At the termination of a loan transaction, the Fund has the obligation to return cash or collateral delivered by the borrower. The Fund may experience losses on the collateral and may be required to liquidate other investments at inopportune times in order to return amounts to the borrower.

ILLIQUID AND RESTRICTED/144A SECURITIES

Subject to its investment restrictions and SEC guidance, the Fund may invest a certain percentage of its net assets in illiquid securities (i.e., securities that are not readily marketable), as discussed above under “Non-Fundamental Policies”.

Restricted securities are securities subject to legal or contractual restrictions on their resale, such as private placements. Such restrictions might prevent the sale of restricted securities at a time when the sale would otherwise be desirable. Securities sold through private placements are not registered under the 1933 Act, as

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amended, and may not be subject to the disclosure and other investor protection requirements that would be applicable if the sale of securities were so registered.

To the extent required by applicable law and SEC guidance, no securities for which there is not a readily available market (“illiquid securities”) will be acquired by the Fund if such acquisition would cause the aggregate value of illiquid securities to exceed 15% the Fund’s net assets. An illiquid security is any security which may not be sold or disposed of in the ordinary course of business within seven days at approximately the value at which the Fund has valued the security. Illiquid securities may be difficult to value, and the Fund may have difficulty disposing of such securities promptly.

In recent years, a large institutional market has developed for certain securities that are not registered under the 1933 Act. Institutional investors generally will not seek to sell these instruments to the general public, but instead will often depend on an efficient institutional market in which such unregistered securities can readily be resold or on an issuer’s ability to honor a demand for repayment. Therefore, the fact that there are contractual or legal restrictions on resale to the general public or certain institutions is not dispositive of the liquidity of such investments.

Rule 144A under the 1933 Act established a “safe harbor” from the registration requirements of the 1933 Act for resales of certain securities to qualified institutional buyers. Institutional markets for restricted securities that might develop as a result of Rule 144A could provide both readily ascertainable values for restricted securities and the ability to liquidate an investment in order to satisfy share redemption orders. An insufficient number of qualified institutional buyers interested in purchasing a Rule 144A-eligible security held by a portfolio could, however, adversely affect the marketability of such portfolio security and the portfolio might be unable to dispose of such security promptly or at reasonable prices.

The Board of Trustees has authorized the Fund’s sub-adviser to make liquidity determinations with respect to Rule 144A securities in accordance with the guidelines established by the Board of Trustees. Under the guidelines which may be amended from time to time, the Fund’s sub-adviser generally will consider the following factors in determining whether a Rule 144A security is liquid: 1) the frequency of trades and quoted prices for the security; 2) the number of dealers willing to purchase or sell the security and the number of other potential purchasers; 3) the willingness of dealers to undertake to make a market in the security; 4) the nature of the marketplace trades, including the time needed to dispose of the security, the method of soliciting offers and the mechanics of the transfer; 5) the likelihood that the security’s marketability will be maintained throughout the anticipated holding period; and/or 6) other factors deemed appropriate. The sale of illiquid securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the OTC markets. The Fund may be restricted in its ability to sell such securities at a time when the Fund’s sub-adviser deems it advisable to do so. In addition, in order to meet redemption requests, the Fund may have to sell other assets, rather than such illiquid securities, at a time that is not advantageous.

COMMODITIES AND NATURAL RESOURCES

Commodities may include, among other things, oil, gas, timber, farm products, minerals, precious metals, for example, gold, silver, platinum, and palladium, and other natural resources. The Fund may invest in companies (such as mining, dealing or transportation companies) with substantial exposure to, or instruments that result in exposure to, commodities markets. Commodities generally and particular commodities have, at times been subject to substantial price fluctuations over short periods of time and may be affected by unpredictable monetary and political policies such as currency devaluations or revaluations, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. The prices of commodities may be, however, less subject to local and company-specific factors than securities of individual companies. As a result, commodity prices may be more or less volatile in price than securities of companies engaged in commodity-related businesses. Investments in commodities can present concerns such as delivery, storage and maintenance, possible illiquidity, and the unavailability of accurate market valuations.

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TEMPORARY INVESTMENTS

At times the Fund’s sub-adviser may judge that conditions in the securities markets make pursuing the Fund’s typical investment strategy inconsistent with the best interest of its shareholders. At such times, the sub-adviser may temporarily use alternative strategies, primarily designed to reduce fluctuations in the value of the Fund’s assets. In implementing these defensive strategies, the Fund may invest without limit in securities that the sub-adviser believes present less risk to the Fund, including equity securities, debt and fixed income securities, preferred stocks, U.S. government and agency obligations, cash or money market instruments, certificates of deposit, demand and time deposits, bankers’ acceptance or other securities the sub-adviser considers consistent with such defensive strategies, such as, but not limited to, options, futures, warrants or swaps. It is impossible to predict when, or for how long, the Fund will use these alternative strategies. As a result of using these alternative strategies, the Fund may not achieve its investment objective.

CERTAIN OTHER SECURITIES IN WHICH THE FUND MAY INVEST

Corporate Debt Securities. The Fund may invest in corporate bonds, notes and debentures of long and short maturities and of various grades, including unrated securities. Corporate debt securities exist in great variety, differing from one another in quality, maturity, and call or other provisions. Lower-grade bonds, whether rated or unrated, usually offer higher interest income, but also carry increased risk of default. Corporate bonds may be secured or unsecured, senior to or subordinated to other debt of the issuer, and, occasionally, may be guaranteed by another entity. In addition, they may carry other features, such as those described under “Convertible Securities” and “Variable or Floating Rate Securities,” or have special features such as the right of the holder to shorten or lengthen the maturity of a given debt instrument, rights to purchase additional securities, rights to elect from among two or more currencies in which to receive interest or principal payments, or provisions permitting the holder to participate in earnings of the issuer or to participate in the value of some specified commodity, financial index, or other measure of value.

Commercial Paper. Commercial paper refers to short-term unsecured promissory notes issued by commercial and industrial corporations to finance their current operations. Commercial paper may be issued at a discount and redeemed at par, or issued at par with interest added at maturity. The interest or discount rate depends on general interest rates, the credit standing of the issuer, and the maturity of the note, and generally moves in tandem with rates on large CDs and Treasury bills. An established secondary market exists for commercial paper, particularly that of stronger issuers which are rated by Moody’s and S&P. Investments in commercial paper are subject to the risks that general interest rates will rise, that the credit standing and outside rating of the issuer will fall, or that the secondary market in the issuer’s notes will become too limited to permit their liquidation at a reasonable price.

International Agency Obligations. The Fund may invest in bonds, notes or Eurobonds of international agencies. Examples are securities issued by the Asian Development Bank, the European Economic Community, and the European Investment Bank. The Fund may also purchase obligations of the International Bank for Reconstruction and Development which, while technically not a U.S. government agency or instrumentality, has the right to borrow from the participating countries, including the United States.

Bank Obligations or Savings and Loan Obligations. Subject to its investment restrictions, the Fund may invest in all types of bank obligations, including certificates of deposit, bankers’ acceptances and other debt obligations of commercial banks and certificates of deposit and other debt obligations of savings and loan associations (“S&Ls”). Certificates of deposit are receipts from a bank or an S&L for funds deposited for a specified period of time at a specified rate of return. Bankers’ acceptances are time drafts drawn on commercial banks by borrowers, usually in connection with international commercial transactions. These instruments may be issued by institutions of any size, may be of any maturity, and may be insured or uninsured.

U.S. commercial banks organized under federal law are supervised and examined by the Comptroller of the Currency and are required to be members of the Federal Reserve System and to be insured by the Federal

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Deposit Insurance Corporation (the “FDIC”). U.S. banks organized under state law are supervised and examined by state banking authorities, but are members of the Federal Reserve System only if they elect to join. Most state banks are insured by the FDIC (although such insurance may not be of material benefit to the Fund, depending upon the principal amount of CDs of each held by the Fund) and are subject to federal examination and to a substantial body of federal law and regulation. As a result of federal and state laws and regulations, U.S. branches of U.S. banks are, among other things, generally required to maintain specified levels of reserves, and are subject to other supervision and regulation designed to promote financial soundness.

Obligations of foreign branches of U.S. banks, such as CDs and time deposits, may be general obligations of the parent bank in addition to the issuing branch, or may be limited by the terms of a specific obligation and governmental regulation. Such obligations are subject to different risks than are those of U.S. banks or U.S. branches of foreign banks. These risks include foreign economic and political developments, foreign governmental restrictions that may adversely affect payment of principal and interest on the obligations, foreign exchange controls and foreign withholding and other taxes on interest income. Foreign branches of U.S. banks and foreign branches of foreign banks are not necessarily subject to the same or similar regulatory requirements that apply to U.S. banks, such as mandatory reserve requirements, loan limitations and accounting, auditing and financial recordkeeping requirements. In addition, less information may be publicly available about a foreign branch of a U.S. bank or about a foreign bank than about a U.S. bank.

Obligations of U.S. branches of foreign banks may be general obligations of the parent bank, in addition to the issuing branch, or may be limited by the terms of a specific obligation and by federal and state regulation as well as governmental action in the country in which the foreign bank has its head office. A U.S. branch of a foreign bank with assets in excess of $1 billion may or may not be subject to reserve requirements imposed by the Federal Reserve System or by the state in which the branch is located if the branch is licensed in that state. In addition, branches licensed by the Comptroller of the Currency and branches licensed by certain states (“State Branches”) may or may not be required to: (a) pledge to the regulator, by depositing assets with a designated bank within the state; and (b) maintain assets within the state in an amount equal to a specified percentage of the aggregate amount of liabilities of the foreign bank payable at or through all of its agencies or branches within the state. The deposits of state branches may not necessarily be insured by the FDIC. In addition, there may be less publicly available information about a U.S. branch of a foreign bank than about a U.S. bank. The Fund may purchase obligations, or all or a portion of a package of obligations, of smaller institutions that are federally insured, provided the obligation of any single institution does not exceed the then current federal insurance coverage of the obligation.

The quality of bank or savings and loan obligations may be affected by such factors as: (a) location — the strength of the local economy will often affect financial institutions in the region; (b) asset mix — institutions with substantial loans in a troubled industry may be weakened by those loans; and (c) amount of equity capital — under-capitalized financial institutions are more vulnerable when loan losses are suffered. The sub-adviser will evaluate these and other factors affecting the quality of bank and savings and loan obligations purchased by the Fund, but the Fund is not restricted to obligations or institutions that satisfy specified quality criteria.

Variable- or Floating-Rate Securities. Subject to its investment restrictions, the Fund may purchase variable rate securities that provide for automatic establishment of a new interest rate at fixed intervals (e.g., daily, monthly, semi-annually, etc.). Floating rate securities generally provide for automatic adjustment of the interest rate whenever some specified interest rate index changes. The interest rate on variable and floating-rate securities is ordinarily determined by reference to, or is a percentage of, a bank’s prime rate, the 90-day U.S. Treasury bill rate, the rate of return on commercial paper or bank certificates of deposit, an index of short-term interest rates, or some other objective measure. These securities generally are structured as loans.

PORTFOLIO TURNOVER RATE

Changes may be made in the Fund’s portfolio consistent with the investment objective and policies of the Fund whenever such changes are believed to be in the best interests of the Fund and its shareholders, and the Fund will

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be managed without regard to its portfolio turnover rate. The portfolio turnover rates for the Fund may vary greatly from year to year as well as within a particular year, and may be affected by cash requirements for redemptions of shares. High portfolio turnover rates will generally result in higher transaction costs to the Fund, including brokerage commissions, and may have adverse tax consequences.

The portfolio turnover rate for the Fund is calculated by dividing the lesser of the Fund’s purchases or sales of portfolio securities for the year by the monthly average value of the securities. The SEC requires that the calculation exclude all securities whose remaining maturities at the time of acquisition are one year or less.

DISCLOSURE OF PORTFOLIO HOLDINGS

It is the policy of the Fund to protect the confidentiality of its holdings and prevent the selective disclosure of non-public information about the Fund’s portfolio holdings. The Fund’s service providers are required to comply with this policy. No non-public information concerning the portfolio holdings of the Fund may be disclosed to any unaffiliated third party, except as provided below. The Board of Trustees has adopted formal procedures governing compliance with the Fund’s policies.

The Fund, or its duly authorized service providers, may publicly disclose holdings of the Fund in accordance with regulatory requirements, such as periodic portfolio disclosure in filings with the SEC. A summary or list of the Fund’s completed purchases and sales may only be made available after the public disclosure of the Fund’s portfolio holdings.

The Fund publishes all portfolio holdings on a quarterly basis on Transamerica Funds’ website at www.transamericafunds.com approximately 25 days after the end of each calendar quarter. Such information generally remains online for six months or as otherwise consistent with applicable regulations. In addition, the Fund publishes its top ten holdings (except Class I share holdings) on the Transamerica Funds website generally within two weeks after the end of each month. The day following such publication, the information is deemed to be publicly disclosed for the purposes of the policies and procedures adopted by the Fund. The Fund may then forward the information to investors and consultants requesting it.

There are numerous mutual fund evaluation services such as S&P, Morningstar, Inc. (“Morningstar”) or Lipper, Inc. (“Lipper”) and due diligence departments of broker-dealers and wire houses that regularly analyze the portfolio holdings of mutual funds in order to monitor and report on various attributes including style, capitalization, maturity, yield, beta, etc. These services and departments then distribute the results of their analysis to the public, paid subscribers and/or in-house brokers. In order to facilitate the review of the Fund by these services and departments, the Fund may distribute (or authorize its service providers to distribute) portfolio holdings to such services and departments before their public disclosure is required or authorized provided that: (i) the recipient does not distribute the portfolio holdings or results of the analysis to third parties, other departments or persons who are likely to use the information for purposes of purchasing or selling the Fund before the portfolio holdings or results of the analysis become public information; and (ii) the recipient signs a written confidentiality agreement. Persons and entities unwilling to execute an acceptable confidentiality agreement may only receive portfolio holdings information that has otherwise been publicly disclosed. Neither the Fund nor its service providers receive any compensation from such services and departments. Subject to such departures as the Fund’s investment adviser’s compliance department believes reasonable and consistent with reasonably protecting the confidentiality of the portfolio information, each confidentiality agreement should generally provide that, among other things: the portfolio information is the confidential property of the Fund (and its service provider, if applicable) and may not be shared or used directly or indirectly for any purpose except as expressly provided in the confidentiality agreement; the recipient of the portfolio information agrees to limit access to the portfolio information to its employees (and agents) who, on a need to know basis, are: (1) authorized to have access to the portfolio information; and (2) subject to confidentiality obligations, including duties not to trade on non-public information, no less restrictive than the confidentiality obligations contained in the Confidentiality Agreement; and upon written request, the recipient agrees to promptly return or destroy, as directed, the portfolio information.

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The Board and an appropriate officer of the investment adviser’s compliance department or the Fund’s Chief Compliance Officer (“CCO”) may, on a case-by-case basis, impose additional restrictions on the dissemination of portfolio information and waive certain requirements. To the extent required by law, the CCO reports to the Board violations of the Fund’s policies and procedures on disclosure of portfolio holdings.

In addition, separate account and unregistered product clients of TAM, the sub-advisers of the other series of Transamerica Funds, or their respective affiliates generally have access to information regarding the portfolio holdings of their own accounts. Prospective clients may also have access to representative portfolio holdings. These clients and prospective clients are not subject to the portfolio holdings disclosure policies described above. Some of these separate accounts and unregistered product clients my have substantially similar or identical investment objectives and strategies to the Fund, and therefore may have substantially similar or nearly identical portfolio holdings as the Fund.

INVESTMENT ADVISORY AND OTHER SERVICES

The Trust has entered into an Investment Advisory Agreement (“Advisory Agreement”) on behalf of the Fund with Transamerica Asset Management, Inc. (“TAM”), located at 570 Carillon Parkway, St. Petersburg, Florida 33716. TAM supervises the Fund’s investments and conducts its investment program. TAM hires sub-advisers to furnish investment advice and recommendations and has entered into a sub-advisory agreement (the “Sub-Advisory Agreement”) with the Fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”).

TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) (“Western Reserve”) and AUSA Holding Company (23%) (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group. TIM is an affiliate of TAM and the Trust.

Investment Adviser Compensation

TAM receives compensation calculated daily and paid monthly from the Fund at the following annual rates indicated, expressed as a specified percentage of the Fund’s average daily net assets:

• 0.73% for the first $500 million;

• 0.70% over $500 million up to $2.5 billion; and

• 0.65% in excess of $2.5 billion.

Advisory Agreement

The duties and responsibilities of the investment adviser are specified in the Fund’s Advisory Agreement. Pursuant to the Advisory Agreement, TAM, subject to the supervision of the Trustees and in conformity with the stated policies of the Fund, manages the operations of the Fund. TAM is authorized to enter into sub-advisory agreements for investment advisory services in connection with the management of the Fund. TAM continues to have responsibility for all investment advisory services furnished pursuant to all sub-advisory agreements.

The Advisory Agreement is not assignable and may be terminated without penalty upon 60 days’ written notice at the option of either the Fund, TAM or by a vote of shareholders of the Fund. The Advisory Agreement provides that it can be continued from year to year so long as such continuance is specifically approved annually (a) by the Board of Trustees or by a majority of the outstanding shares of the Fund and (b) by a majority vote of

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the Trustees who are not parties to the Advisory Agreement or interested persons of any such party cast in person at a special meeting called for such purposes.

The Advisory Agreement also provides that TAM shall not be liable to the Fund or to any shareholder for any error of judgment or mistake of law or for any loss suffered by the Fund or by any shareholder in connection with matters to which the Advisory Agreement relates, except for a breach of fiduciary duty or a loss resulting from willful misfeasance, bad faith, gross negligence or reckless disregard on the part of TAM in the performance of its duties thereunder.

The Fund pays its allocable share of the fees and expenses of the Fund’s non-interested trustees, custodian and transfer agent fees, brokerage commissions and all other expenses in connection with the execution of its portfolio transactions, administrative, clerical, recordkeeping, bookkeeping, legal, auditing and accounting expenses, interest and taxes, expenses of preparing tax returns, expenses of shareholders’ meetings and preparing, printing and mailing proxy statements (unless otherwise agreed to by the Fund or TAM), expenses of preparing and typesetting periodic reports to shareholders (except for those reports the Fund permits to be used as sales literature), and the costs, including filing fees, of renewing or maintaining registration of fund shares under federal and state law.

Expense Limitation

TAM has entered into an expense limitation agreement with the Trust on behalf of the Fund, pursuant to which TAM has agreed to reimburse the Fund’s expenses or waive fees, or both, whenever, in any fiscal year, the total cost to the Fund of normal operating expenses chargeable to Class A, Class B, Class C and Class I shares of the Fund, including the investment advisory fee but excluding brokerage commissions, interest, taxes and 12b-1 fees, certain extraordinary expenses exceeds 1.17% of the average daily net assets attributable to those Classes. In addition, TAM has contractually agreed to limit ordinary operating expense to the extent required to reduce the Fund’s net expenses to 1.15% of the average daily net assets attributable to Class P shares, excluding extraordinary expenses. The Fund may at a later date reimburse TAM for operating expenses previously paid on the Fund’s behalf during the previous 36 months, but only if, after such reimbursement, the Fund’s expense ratios do not exceed the expense cap. TAM has contractually agreed to these expense limitations undertaken through March 1, 2011.

Total Advisory Fees Paid by the Fund

The Fund had not commenced operations prior to the date of this SAI, and as such, there is no historical advisory fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.

Sub-Adviser

TIM, located at 11111 Santa Monica Blvd., Suite 820, Los Angeles, CA 90025, serves as sub-adviser to the Fund.

TIM may also serve as sub-adviser to certain portfolios of Transamerica Series Trust (“TST”), Transamerica Premier Funds, and Transamerica Partners Portfolios (“TPP”), registered investment companies.

TAM, and not the Fund, pays TIM for its services. TIM receives monthly compensation from TAM at the annual rate of the specified percentage of the Fund’s average daily net assets:

• 0.35% of the first $500 million;

• 0.30% over $500 million up to $2.5 billion; and

• 0.25% in excess of $2.5 billion.

Sub-Advisory Fees Paid

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The Fund had not commenced operations prior to the date of this SAI, and as such, there is no historical sub-advisory fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.

TIM serves as investment adviser or sub-adviser to other funds and/or private accounts that may have investment objectives identical or similar to those of the Fund. Securities frequently meet the investment objectives of the Fund, the other funds and the private accounts. In such cases, TIM’s decision to recommend a purchase to one fund or account rather than another is based on a number of factors as set forth in TIM’s allocation procedures. The determining factors in most cases are the amounts available for investment by each fund or account, the amount of securities of the issuer then outstanding, the value of those securities and the market for them. Another factor considered in the investment recommendations is other investments which each fund or account presently has in a particular industry.

It is possible that at times identical securities will be held by more than one fund or account. However, positions in the same issue may vary and the length of time that any fund or account may choose to hold its investment in the same issue may likewise vary. To the extent that more than one of the funds or private accounts served by TIM seeks to acquire or sell the same security at about the same time, either the price obtained by a fund or the amount of securities that may be purchased or sold by a fund at one time may be adversely affected. On the other hand, if the same securities are bought or sold at the same time by more than one fund or account, the resulting participation in volume transactions could produce better executions for the Fund. In the event more than one fund or account purchases or sells the same security on a given date, the purchase and sale transactions are allocated among the funds and the private accounts in a manner believed by TIM to be equitable to each.

Affiliated Sub-adviser – Potential Conflicts of Interest.

As described above, TAM has selected TIM to serve as a sub-adviser to certain of the Fund. TIM and TAM are affiliated entities, both of which are indirectly controlled by AEGON NV. Advisory arrangements involving affiliated sub-advisers may present certain potential conflicts of interest. For each fund sub-advised by TIM (including the Fund), AEGON NV may indirectly benefit from the net advisory fee retained by TAM as well as from the sub-advisory fee paid by TAM to TIM. TAM has a fiduciary duty to act in the best interests of a fund and its shareholders when recommending to the Board the appointment of or continued service of an affiliated sub-adviser for a fund. Moreover, TAM’s “manager of managers” exemptive order from the SEC requires fund shareholder approval of any sub-advisory agreement appointing an affiliated sub-adviser as the sub-adviser to a fund. In the case of a new fund, like Transamerica Diversified Equity, the initial sole shareholder of the fund, an affiliate of TAM, TIM, and AEGON NV, may provide this approval. The Independent Trustees are aware of and monitor these potential conflicts of interest.

Information about the Fund’s Portfolio Managers

Information regarding other accounts for which any portfolio manager is primarily responsible for the day-to-day management, a description of any material conflict of interest that may arise in connection with the portfolio manager’s management of the Fund’s investments, the structure of, and method used to determine, the compensation of each portfolio manager and the dollar range of equity securities in the Fund beneficially owned by each portfolio manager are provided in Appendix B of this SAI.

DISTRIBUTOR

Transamerica Capital, Inc. (“TCI”), located at 4600 South Syracuse Street, Suite 1100, Denver, Colorado 80237, will act as the principal underwriter and distributor of the Fund’s shares. TCI became the principal underwriter and distributor of shares of the series of the Trust on May 1, 2007. Prior to that time, the Trust had entered into an Underwriting Agreement, effective March 1, 2001, with AFSG Securities Corporation (“AFSG”), located at 4333 Edgewood Rd. NE, Cedar Rapids, Iowa 52494, to act as principal underwriter. TCI is an affiliate of TAM and AFSG. The Underwriting Agreement will continue from year to year so long as its continuance is approved

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at least annually in the same manner as the Advisory Agreement discussed above. A discussion of TCI’s responsibilities and charges as principal underwriter is set forth in the Information Statement/Prospectus.

The Fund had not commenced operations prior to the date of this SAI, and as such, there is no historical distribution fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.

ADMINISTRATIVE SERVICES

TAM is responsible for the supervision of all of the administrative functions, providing office space, and paying its allocable portion of the salaries, fees and expenses of all fund officers and of those trustees who are affiliated with TAM. The costs and expenses, including legal and accounting fees, filing fees and printing costs in connection with the formation of a fund and the preparation and filing of a fund’s initial registration statements under the 1933 Act and 1940 Act are also paid by the adviser. The Trust has entered into an Administrative Services Agreement (“Administrative Agreement”) with Transamerica Fund Services, Inc. (“TFS”), 570 Carillon Parkway, St. Petersburg, FL 33716, on behalf of each series of the Trust, including the Fund. Under the Administrative Agreement, TFS carries out and supervises all of the administrative functions of each such series and incurs expenses payable by the Trust related to such functions. The Fund will pay 0.02% of its daily net assets to TFS for such administrative services.

The administrative duties of TFS with respect to the Fund include: providing the Fund with office space, telephones, office equipment and supplies; paying the compensation of the Fund’s officers for services rendered as such; supervising and assisting in preparation of annual and semi-annual reports to shareholders, notices of dividends, capital gain distributions and tax information; supervising compliance by the Fund with the recordkeeping requirements under the 1940 Act and regulations thereunder and with the state regulatory requirements; maintaining books and records of the Fund (other than those maintained by the Fund’s custodian and transfer agent); preparing and filing tax returns and reports; monitoring and supervising relationships with the Fund’s custodian and transfer agent; monitoring the qualifications of tax deferred retirement plans providing for investment in shares of the Fund; authorizing expenditures and approving bills for payment on behalf of the Fund; and providing executive, clerical and secretarial help needed to carry out its duties.

The Fund had not commenced operations prior to the date of this SAI, and as such, there is no historical administrative fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.

CUSTODIAN, TRANSFER AGENT AND OTHER AFFILIATES

State Street Bank and Trust Company (“State Street”), 225 Franklin Street, Boston, MA 02110, is custodian for the Trust. The custodian is not responsible for any of the investment policies or decisions of the Fund, but holds its assets in safekeeping, and collects and remits the income thereon subject to the instructions of the Fund.

TFS, 570 Carillon Parkway, St. Petersburg, FL 33716, is the transfer agent, withholding agent and dividend disbursing agent for the Fund. TFS is directly owned by Western Reserve (44%) and AUSA (56%), both of which are indirect, wholly owned subsidiaries of AEGON N.V.; and thus TFS is an affiliate of TAM. The Fund pays the transfer agent an annual per-account charge of $19.60 for each Open Account and $1.50 for each Closed Account. There is no new account charge.

Transaction requests should be mailed to Transamerica Funds, P.O. Box 219945, Kansas City, MO 64121-9945 or Transamerica Funds, 330 W. 9^th Street, Kansas City, MO 64105 (for overnight mail).

The Fund had not commenced operations prior to the date of this SAI, and as such, there is no historical custodial or transfer agency fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008, nor did the Fund receive any brokerage credits for those same periods.

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FUND TRANSACTIONS AND BROKERAGE

Decisions as to the assignment of business for the Fund and negotiation of commission rates are made by TIM, whose policy is to seek to obtain the “best execution” of all fund transactions. The Advisory Agreement and Sub-Advisory Agreement specifically provide that in placing portfolio transactions for the Fund, TIM may agree to pay brokerage commissions for effecting a securities transaction in an amount higher than another broker or dealer would have charged for effecting that transaction as authorized, under certain circumstances, by the Securities Exchange Act of 1934, as amended (the “1934 Act”).

In selecting brokers and dealers and in negotiating commissions, TIM may consider a number of factors, including but not limited to:

• TIM’s knowledge of currently available negotiated commission rates or prices of securities and other current transaction costs;

• The nature of the security being traded;

• The size and type of the transaction;

• The nature and character of the markets for the security to be purchased or sold;

• The desired timing of the trade;

• The activity existing and expected in the market for the particular security;

• The quality of the execution, clearance and settlement services;

• Financial stability;

• The existence of actual or apparent operational problems of any broker or dealer; and

• Research products and services provided.

In recognition of the value of the foregoing factors, TIM may place portfolio transactions with a broker with whom it has negotiated a commission that is in excess of the commission another broker would have charged for effecting that transaction. This is done if TIM determines in good faith that such amount of commission was reasonable in relation to the value of the brokerage and research provided by such broker viewed in terms of either that particular transaction or of TIM’s overall responsibilities. Research provided may include:

• Furnishing advice, either directly or through publications or writings, as to the value of securities, the advisability of purchasing or selling specific securities and the availability of securities or purchasers or sellers of securities;

• Furnishing seminars, information, analyses and reports concerning issuers, industries, securities, trading markets and methods, legislative developments, changes in accounting practices, economic factors and trends and portfolio strategy;

• Access to research analysts, corporate management personnel, industry experts, economists and government officials; and

• Comparative performance evaluation and technical measurement services and quotation services, and other services (such as third party publications, reports and analyses, and computer and electronic access, equipment, software, information and accessories that deliver process or otherwise utilize

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information, including the research described above) that assist the sub-adviser in carrying out its responsibilities.

Most of the brokers and dealers used by TIM provide research and other services described above.

TIM may use research products and services in servicing other accounts in addition to the Fund. If TIM determines that any research product or service has a mixed use, such that it also serves functions that do not assist in the investment decision-making process, TIM may allocate the costs of such service or product accordingly. The portion of the product or service that TIM determines will assist it in the investment decision-making process may be paid for in brokerage commission dollars. Such allocation may be a conflict of interest for TIM.

When a fund purchases or sells a security in the over-the-counter market, the transaction takes place directly with a principal market-maker without the use of a broker, except in those circumstances where better prices and executions will be achieved through the use of a broker.

TIM may place transactions for the purchase or sale of portfolio securities with its affiliates and affiliates of TAM or TCI, including InterSecurities, Inc., AEGON USA Securities, Inc. or DST Securities, Inc. TIM may place transactions if it reasonably believes that the quality of the transaction and the associated commission are fair and reasonable, and if overall the associated transaction costs, net of any credits described above under “Custodian, Transfer Agent and Other Affiliates,” are lower than those that would otherwise be incurred. Under rules adopted by the SEC, the Fund’s Board of Trustees will conduct periodic compliance reviews of such brokerage allocations and review certain procedures adopted by the Board of Trustees to ensure compliance with these rules and to determine their continued appropriateness.

DIRECTED BROKERAGE

TIM, to the extent consistent with the best execution and with TAM’s usual commission rate policies and practices, may place portfolio transactions of the Fund with broker/dealers with which the Fund establishes a Directed Brokerage Program. A Directed Brokerage Program is any arrangement under which a broker/dealer applies a portion of the commissions received by such broker/dealer on a fund’s portfolio transactions to the payment of operating expenses that would otherwise be borne by the fund. These commissions are not used for promoting or selling fund shares or otherwise related to the distribution of fund shares.

The Fund had not commenced operations prior to the date of this SAI, and as such, there is no historical fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.

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BOARD MEMBERS AND OFFICERS

The Board Members and executive officers of the Trust are listed below. The Board governs each fund that is a series of the Trust, including the 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 the Trust 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 Asset Management Group”). Transamerica Asset Management Group (“TAMG”) consists of Transamerica Funds, Transamerica Series Trust (“TST”), Transamerica Investors, Inc. (“TII”), 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 185 funds as of the date of this SAI.

The mailing address of each Board Member is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716. The Board Members, their ages, their positions with the Trust, and their principal occupations for the past five years (their titles may have varied during that period), the number of funds in TAMG the Board oversees, and other board memberships they hold are set forth in the table below.

				Number of
				Funds in
				Complex
		Term of Office		Overseen
	Position(s) Held	and Length of	Principal Occupation(s) During	by Board	Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member	Directorships
INTERESTED BOARD MEMBER**
John K. Carter (1961)	Chairman, Board Member, President, and Chief Executive Officer	Since 1999	Chairman and Board Member (2008 — present), President (2007 — present), Chief Executive Officer (2006 — present), Vice President, Secretary and Chief Compliance Officer (2003 — 2006), TII;	185	N/A
			Chairman, Board Member, President and Chief Executive Officer, TPP, TPFG, TPFG II and TAAVF (2007 — present);
			Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Chief Compliance Officer, General Counsel and Secretary (1999 — 2006), Transamerica Funds and TST;
			Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (2002 — 2006), General Counsel, Secretary and Chief Compliance Officer (2002 — 2006), TIS;
			President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Director (2000 — present), General Counsel and Secretary (2000 — 2006), Chief Compliance Officer (2004 — 2006), TAM;

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				Number of
				Funds in
				Complex
		Term of Office		Overseen
	Position(s) Held	and Length of	Principal Occupation(s) During	by Board	Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member	Directorships
			President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Director (2001 — present), General Counsel and Secretary (2001 — 2006), Transamerica Fund Services, Inc. (“TFS”);
			Vice President, AFSG Securities Corporation (2001 —present);
			Senior Vice President, General Counsel and Secretary, Transamerica Index Funds, Inc. (“TIF”) (2002 — 2004); and
			Director, (2008 — present), Vice President, Transamerica Investment Services, Inc. (“TISI”) (2003 — 2005) and Transamerica Investment Management, LLC (“TIM”) (2001 — 2005).
INDEPENDENT BOARD MEMBERS***
Sandra N. Bane (1952)	Board Member	Since 2008	Retired, KPMG (1999 — present); Board Member, TII (2003 — present); and Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2008 — present).	185	Big 5 Sporting Goods (2002 — present); AGL Resources, Inc. (energy services holding company) (2008 — present)
Leo J. Hill (1956)	Lead Independent Board Member	Since 2002	Principal, Advisor Network Solutions, LLC (business consulting) (2006 — present);	185	N/A
			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 — present);
			Owner and President, Prestige Automotive Group (2001 — 2005);

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				Number of
				Funds in
				Complex
		Term of Office		Overseen
	Position(s) Held	and Length of	Principal Occupation(s) During	by Board	Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member	Directorships
			President, L. J. Hill & Company (1999 — present);
			Market President, Nations Bank of Sun Coast Florida (1998 — 1999);
			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).
David W. Jennings (1946)	Board Member	Since 2009	Board Member, Transamerica Funds, TST, TII, TIS, TPP, TPFG, TPFG II and TAAVF (July 2009 — present);	185	N/A
			Principal, Maxam Capital Management, LLC (2006 — 2008); and
			Principal, Cobble Creek Management LP (2004 — 2006).
Neal M. Jewell (1935)	Board Member	Since 2007	Retired (2004 — present); Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present); Board Member, Transamerica Funds, TST and TIS (2007 — present);	185	N/A
			Board Member, TII (2008 — present); and
			Independent Trustee, EAI Select Managers Equity Fund (a mutual fund) (1996 — 2004).
Russell A. Kimball, Jr. (1944)	Board Member	1986 — 1990 and 2002 — Present	General Manager, Sheraton Sand Key Resort (1975 — present); Board Member, TST (1986 — present);	185	N/A
			Board Member, Transamerica Funds, (1986 — 1990), (2002 — present);
			Board Member, TIS (2002 — present);

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				Number of
				Funds in
				Complex
		Term of Office		Overseen
	Position(s) Held	and Length of	Principal Occupation(s) During	by Board	Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member	Directorships
			Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); and
			Board Member, TII (2008 — present).
Eugene M. Mannella (1954)	Board Member	Since 2007	Chief Executive Officer, HedgeServ Corporation (hedge fund administration) (2008 — present);	185	N/A
			Self-employed consultant (2006 — present);
			President, ARAPAHO Partners LLC (limited purpose broker-dealer) (1998 — 2008);
			Board Member, TPP, TPFG, TPFG II and TAAVF (1994 — present);
			Board Member, Transamerica Funds, TST and TIS (2007 — present);
			Board Member, TII (2008 — present); and President, International Fund Services (alternative asset administration) (1993 — 2005).
Norman R. Nielsen (1939)	Board Member	Since 2006	Retired (2005 — present); Board Member, Transamerica Funds, TST and TIS (2006 — present); Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present);	185	Buena Vista University Board of Trustees (2004 — present)
			Board Member, TII (2008 — present);
			Director, Iowa Student Loan Service Corporation (2006 — present);
			Director, League for Innovation in the Community Colleges (1985 — 2005);
			Director, Iowa Health Systems (1994 — 2003);

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				Number of
				Funds in
				Complex
		Term of Office		Overseen
	Position(s) Held	and Length of	Principal Occupation(s) During	by Board	Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member	Directorships
			Director, U.S. Bank (1987 — 2006); and
			President, Kirkwood Community College (1985 — 2005).
Joyce G. Norden (1939)	Board Member	Since 2007	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);	185	Board of Governors, Reconstructionist Rabbinical College (2007 - present)
			Board Member, TII (2008 — present); and
			Vice President, Institutional Advancement, Reconstructionist Rabbinical College (1996 — 2004).
Patricia L. Sawyer (1950)	Board Member	Since 2007	Retired (2007 — present); President/Founder, Smith & Sawyer LLC (management consulting) (1989 — 2007);	185	N/A
			Board Member, Transamerica Funds, TST and TIS (2007 — present);
			Board Member, TII (2008 — present);
			Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present);
			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 2005	Attorney, Englander & Fischer, P.A. (2008 — present);	185	Operation Par, Inc. (2008 — present); West

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				Number of
				Funds in
				Complex
		Term of Office		Overseen
	Position(s) Held	and Length of	Principal Occupation(s) During	by Board	Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member	Directorships
			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 — present); Employee, RBC Dain Rauscher (securities dealer) (2004);		Central Florida Council — Boy Scouts of America (2008 — present)
			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).

*	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.
**	May be deemed an “interested person” (as that term is defined in the 1940 Act) of the Trust because of his employment with TAM or an affiliate of TAM.
***	Independent Board Member means a Board Member who is not an “interested person” (as defined under the 1940 Act) of the Trust.

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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 ages, their positions held with the 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.

		Term of Office
		and Length of	Principal Occupation(s) or
Name and Age	Position	Time Served*	Employment During Past 5 Years
John K. Carter (1961)	Chairman, Board Member, President, and Chief Executive Officer	Since 1999	See the table above.
Dennis P. Gallagher (1970)	Vice President, General Counsel and Secretary	Since 2006	Vice President, General Counsel and Secretary, TII, Transamerica Funds, TST and TIS (2006 — present);
			Vice President, General Counsel and Secretary, TPP, TPFG, TPFG II and TAAVF (2007 — present);
			Director, Senior Vice President, General Counsel and Secretary, TAM and TFS (2006 — present);
			Assistant Vice President, TCI (2007 — present); and
			Director, Deutsche Asset Management (1998 — 2006).
Joseph P. Carusone (1965)	Vice President, Treasurer and Principal Financial Officer	Since 2007	Vice President, Treasurer and Principal Financial Officer, Transamerica Funds, TST, TIS and TII (2007 — present);
			Vice President (2007 — present), Treasurer and Principal Financial Officer (2001 — present), TPP, TPFG, TPFG II and TAAVF;
			Senior Vice President, TAM and TFS (2007 — present);
			Senior Vice President (2008 — present), Vice President (2001 — 2008); Diversified Investment Advisors, Inc. (“DIA”);
			Director and President, Diversified Investors Securities Corp. (“DISC”) (2007 — present);
			Director, Transamerica Financial Life Insurance Company

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		Term of Office
		and Length of	Principal Occupation(s) or
Name and Age	Position	Time Served*	Employment During Past 5 Years
			(“TFLIC”) (2004 — present); and
			Treasurer, Diversified Actuarial Services, Inc. (2002 — present).
Christopher A. Staples (1970)	Vice President and Chief Investment Officer	Since 2005	Vice President and Chief Investment Officer (2007 — present); Vice President - Investment Administration (2005 — 2007), TII;
			Vice President and Chief Investment Officer (2007 — present), Senior Vice President — Investment Management (2006 — 2007), Vice President — Investment Management (2005 — 2006),
			Transamerica Funds, TST and TIS;
			Vice President and Chief Investment Officer, TPP, TPFG, TPFG II and TAAVF (2007 — present);
			Director (2005 — present), Senior Vice President — Investment Management (2006 — present) and Chief Investment Officer (2007 — present), TAM;
			Director, TFS (2005 — present); and
			Assistant Vice President, Raymond James & Associates (1999 — 2004).
Rick B. Resnik (1967)	Vice President, Chief Compliance Officer and Conflicts of Interest Officer	Since 2008	Chief Compliance Officer, TPP, TPFG, TPFG II and TAAVF (2004 — present); Chief Compliance Officer, Transamerica Funds, TST, TIS and TII (2008 — present); Vice President and Conflicts of Interest Officer, TPP, TPFG, TPFG II, TAAVF, Transamerica Funds, TST, TIS and TII (2008 — present);
			Senior Vice President and Chief Compliance Officer, TAM (2008 — present);
			Senior Vice President, TFS (2008 — present);
			Vice President and Chief Compliance Officer, DIA (2004 — present); with DIA since 1988;
			Director (1999 — present), Vice President and Chief Compliance Officer (1996 — present), DISC;
			Assistant Vice President, TFLIC (1999 — present); and
			Chief Compliance Officer, Transamerica Partners Variable Funds (2004 — present).
Robert A. DeVault, Jr. (1965)	Assistant Treasurer	Since 2009	Assistant Treasurer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (January 2009 — present); and

S-81

		Term of Office
		and Length of	Principal Occupation(s) or
Name and Age	Position	Time Served*	Employment During Past 5 Years
			Assistant Vice President (2007 — present) and Manager, Fund Administration, (2002 — 2007), TFS.
Suzanne Valerio- Montemurro (1964)	Assistant Treasurer	Since 2007	Assistant Treasurer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (2007 — present); and
			Vice President, DIA (1998 — present).
Sarah L. Bertrand (1967)	Assistant Secretary	Since 2009	Assistant Secretary, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (January 2009 — present);
			Assistant Vice President and Manager, 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).
Timothy J. Bresnahan (1968)	Assistant Secretary	Since 2009	Assistant Secretary, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (January 2009 — present);
			Counsel, TAM (2008 — present);
			Counsel (contract), Massachusetts Financial Services, Inc. (2007);
			Assistant Counsel, BISYS Fund Services Ohio, Inc. (2005 — 2007); and
			Associate, Greenberg Traurig, P.A. (2004 — 2005).
Richard E. Shield, Jr. (1974)	Tax Officer	Since 2008	Tax Officer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (2008 — present);
			Tax Manager, Jeffrey P. McClanathan, CPA (2006 — 2007) and Gregory, Sharer & Stuart (2005 — 2006);
			Tax Senior, Kirkland, Russ, Murphy & Tapp, P.A. (2003 — 2005); and
			Certified Public Accountant, Schultz, Chaipel & Co., LLP (1998 — 2003).

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

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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.

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Committees of the Board

The Board Members are responsible for major decisions relating to a fund’s objective, policies and techniques. They review investment decisions, although they do not actively participate on a regular basis in making such decisions. The Board has the following standing committees each of which performs specialized functions: an Audit Committee and a Nominating Committee.

			NUMBER OF
			MEETINGS
			HELD DURING
			LAST FISCAL
COMMITTEE	FUNCTIONS	MEMBERS	YEAR 10/31/2008
AUDIT	The Audit Committee (1) oversees the accounting and reporting policies and practices of the Trust; (2) oversees the quality and integrity of the financial statements of the Trust; (3) approves, prior to appointment, the engagement of the Trust’s independent auditors; and (4) reviews and evaluates the independent auditors’ qualifications, independence and performance. The independent auditors for the Trust shall report directly to the Audit Committee.	John W. Waechter, Chairperson Sandra N. Bane Leo J. Hill David W. Jennings Neal M. Jewell Russell A. Kimball, Jr. Eugene M. Mannella Norman R. Nielsen Joyce G. Norden Patricia L. Sawyer		4
NOMINATING	The primary purposes and responsibilities of the Committee are to (i) identify individuals qualified to become members of the Board in the event that a position is vacated or created, (ii) consider all candidates proposed to become members of the Board, subject to the procedures and policies set forth in this Charter or resolutions of the Board, (iii) select and nominate, or recommend for nomination by the Board, candidates for election as Trustees and (iv) set any necessary standards or qualifications for service on the Board.	Patricia L. Sawyer, Chairperson Sandra N. Bane Leo J. Hill David W. Jennings Neal M. Jewell Russell A. Kimball, Jr. Eugene M. Mannella Norman R. Nielsen Joyce G. Norden John W. Waechter		0
	Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716.

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Trustee Ownership of Equity Securities

The table below gives the aggregate dollar range of shares of all funds/portfolios in the Transamerica Asset Management Group owned by each Trustee as of December 31, 2008. Information concerning the Fund is not shown, because the Fund had not commenced operations prior to the date of this SAI.

	Aggregate Dollar Range of Equity
	Securities in Transamerica Asset
Name of Trustee	Management Group
John K. Carter*	Over $100,000
Sandra N. Bane	None
Leo J. Hill	Over $100,000
Neal M. Jewell	Over $100,000
Russell A. Kimball, Jr.	Over $100,000
Eugene M. Mannella	None
Norman R. Nielsen	Over $100,000
Joyce G. Norden	None
Patricia L. Sawyer	None
John W. Waechter	Over $100,000

* Interested person under the 1940 Act by virtue of his position with TAM and its affiliates.

Note: Information is not shown for David W. Jennings as Mr. Jennings became a Trustee on July 22, 2009.

As of December 31, 2008, none of the Independent Trustees or their immediate family members owned beneficially or of record any securities of the Adviser, sub-advisers or Distributor of the funds, or in a person (other than a registered investment company) directly or indirectly controlling, controlled by or under common control with the Adviser, sub-advisers or Distributor of the funds.

Independent Trustees receive a total annual retainer fee of $124,000 from the funds/portfolios that make up the Transamerica Asset Management Group, as well as total fees of $8,800 per meeting (assumes five meetings annually), of which the Trust pays a pro rata share allocable to each series of the Trust based on the relative assets of the series. The Lead Independent Trustee of the Board also receives an additional retainer of $40,000 per year. The Audit Committee Chairperson receives an additional retainer of $15,000 per year. The Trust also pays a pro rata share allocable to each series of the Trust based on the relative assets of the series for the Lead Independent Trustee and Audit Committee Chairperson retainers. Any fees and expenses paid to Trustees who are affiliates of TAM or TCI are paid by TAM and/or TCI and not by the Trust.

Under a non-qualified deferred compensation plan effective January 1, 1996, as amended and restated May 1, 2008 (the “Deferred Compensation Plan”), available to the Trustees, compensation may be deferred that would otherwise be payable by the Trust 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 the Trust (without imposition of sales charge), investment options under Transamerica Partners Funds Group II, or funds of Transamerica Investors, Inc. (“Premier”) as elected by the Trustee.

Amounts deferred and accrued under the Deferred Compensation Plan are unfunded and unsecured claims against the general assets of the Trust.

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The following table provides compensation amounts paid to Independent Trustees for the fiscal year ended October 31, 2008.

COMPENSATION TABLE

	Pension or Retirement Benefits	Total Compensation Paid to
	Accrued as Part of Fund	Trustees from Transamerica Asset
Name of Trustee	Expenses(1)	Management Group(1)(2)
Sandra N. Bane	$0	$120,550
Leo J. Hill	$0	$185,200
Neal M. Jewell	$0	$218,701
Russell A. Kimball, Jr.	$0	$185,200
Eugene M. Mannella	$0	$177,534
Norman R. Nielsen	$0	$185,200
Joyce G. Norden	$0	$177,534
Patricia L. Sawyer	$0	$190,784
John W. Waechter	$0	$188,534

(1)

No information is shown for the Fund as the Fund had not commenced operations prior to the date of this SAI.

(2)

Of this aggregate compensation, the total amounts deferred from the series of Transamerica Funds (including earnings and dividends) and accrued for the benefit of the participating Trustees for the fiscal year ended October 31, 2008 were as follows: Sandra N. Bane, $0: Leo J. Hill, $6,745; Neal M. Jewell, $21,191; Russell A. Kimball, Jr., $12,219; Eugene M. Mannella, $0; Norman R. Nielsen, $0; Joyce G. Norden, $0; Patricia L. Sawyer, $0; and John W. Waechter, $0.

Note: Information is not shown for David W. Jennings as Mr. Jennings became a Trustee on July 22, 2009.

As of October 31, 2008, the trustees and officers held in aggregate less than 1% of the outstanding shares of each of the series of the Trust.

SHAREHOLDER COMMUNICATION PROCEDURES WITH BOARD OF TRUSTEES

The Board of Trustees of the Trust has adopted these procedures by which shareholders of the funds may send written communications to the Board. Shareholders may mail written communications to the Board, addressed to the care of the Secretary of the Trust (“Secretary”), as follows:

Board of Trustees
Transamerica Funds
c/o Secretary
570 Carillon Parkway
St. Petersburg, Florida 33716

Each shareholder communication must: (i) be in writing and be signed by the shareholder; (ii) identify the underlying series of the Trust to which it relates; and (iii) identify the class (if applicable) held by the shareholder. The Secretary is responsible for collecting, reviewing and organizing all properly submitted shareholder communications. Usually, with respect to each properly submitted shareholder communication, the Secretary shall either: (i) provide a copy of the communication to the Board at the next regularly scheduled Board meeting; or (ii) if the Secretary determines that the communication requires more immediate attention, forward the communication to the Board promptly after receipt. The Secretary may, in good faith, determine that a shareholder communication should not be provided to the Board because the communication: (i) does not reasonably relate to a series of the Trust or its operation, management, activities, policies, service providers, Board, officers, shareholders or other matters relating to an investment in the Trust; or (ii) is ministerial in nature (such as a request for fund literature, share data or financial information). These procedures shall not apply to (i) any communication from an officer or Trustee of the Trust, (ii) any communication from an employee or agent of the Trust, unless such communication is made solely in such employee’s or agent’s

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capacity as a shareholder, (iii) any shareholder proposal submitted pursuant to Rule 14a-8 under the 1934 Act or any communication made in connection with such a proposal, or (iv) any communication that reasonably may be considered to be a complaint regarding the Trust or shareholder services, which complaint shall instead be promptly forwarded to the Trust’s Chief Compliance Officer. The Trustees are not required to attend the Trust’s shareholder meetings, if any, or to otherwise make themselves available to shareholders for communications, other than pursuant to these Procedures.

DEALER REALLOWANCES

CLASS A, CLASS B, AND CLASS C SHARES ONLY (NOT APPLICABLE TO CLASS P OR CLASS I SHARES).

Transamerica Funds sells shares of its funds, including the Fund, both directly and through authorized dealers. When you buy shares, the Fund receives the entire NAV of the shares you purchase. TCI keeps the sales charge, then “reallows” a portion to the dealers through which shares were purchased. This is how dealers are compensated. From time to time, and particularly in connection with sales that are not subject to a sales charge, TCI may enter into agreements with a broker or dealer whereby the dealer reallowance is less than the amounts indicated in the following tables.

Promotions may also involve non-cash incentives such as prizes or merchandise. Non-cash compensation may also be in the form of attendance at seminars conducted by TCI, including lodging and travel expenses, in accordance with the rules of the FINRA.

Reallowances may also be given to financial institutions to compensate them for their services in connection with Class A share sales and servicing of shareholder accounts.

Class A Share Dealer Reallowances

	Reallowance to Dealers as a Percent
Amount of Purchase	of Offering Price
Under $50 Thousand	4.75%
$50 Thousand to under $100 Thousand	4.00%
$100 Thousand to under $250 Thousand	2.75%
$250 Thousand to under $500 Thousand	2.25%
$500 Thousand to under $1 Million	1.75%
For purchases of $1 Million and above:
$1 Million to under $5 Million	1.00%*
$5 Million to under $50 Million	Plus 0.50%*
$50 Million and above	Plus 0.25%*

* No Dealer Reallowance is paid on purchases made on behalf of wrap accounts for the benefit of certain broker-dealers, financial institutions, or financial planners who have entered into arrangements with Transamerica Funds or TCI , and for purchases made by a retirement plan described in Section 401(a), 401(k), 401(m), or 457 of the Internal Revenue Code.

Class B Share Dealer Reallowances

	Reallowance to Dealers as a Percent
Amount of Purchase	of Offering Price
All purchases	4.00%*

Class C Share Dealer Reallowances

	Reallowance to Dealers as a Percent
Amount of Purchase	of Offering Price
All purchases	1.00%**

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*	From time to time, TCI may reallow to a dealer an amount less than 4% on sales of Class B shares. In such circumstances, TCI will benefit directly to the extent the reallowance percentage is reduced below 4% on any purchase of Class B shares.
**	From time to time, TCI may enter into agreements with brokers and dealers whereby the dealer allowance may be less than the amount indicated. Such agreements would also provide that the applicable shares could be subject to a contingent deferred sales charge for a period less than the otherwise applicable period.

DISTRIBUTION PLANS

CLASS A, CLASS B, CLASS C, AND CLASS P SHARES ONLY (NOT APPLICABLE TO CLASS I SHARES).

The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act (the “Distribution Plan”), applicable to Class A, Class B, Class C, and Class P shares of the Fund. This Plan is structured as a Compensation Plan. Class I shares of the Fund are not subject to distribution and service fees.

In determining whether to approve the Distribution Plan and the Distribution Agreements, the Trustees considered the possible advantages afforded shareholders from adopting the Distribution Plan and Distribution Agreements. The Trustees were informed by representatives of TCI that payments of distribution-related expenses by the Fund under the Distribution Plans would provide incentives to TCI to establish and maintain an enhanced distribution system whereby new investors will be attracted to the Fund. The Trustees believe that improvements in distribution services should result in increased sales of the Fund’s shares. In turn, increased sales are expected to lead to an increase in the Fund’s net asset levels, which would enable the Fund to achieve economies of scale and lower its per-share operating expenses. In addition, higher net asset levels could enhance the investment management of the Fund, for net inflows of cash from new sales may enable the Fund’s investment adviser and sub-adviser to take advantage of attractive investment opportunities. Finally, reduced redemptions could eliminate the potential need to liquidate attractive securities positions in order to raise the capital necessary to meet redemption requests.

Under the Distribution Plan, for Class A shares, the Fund may pay TCI annual distribution and service fees of up to 0.35% of the average daily net assets of the Fund’s Class A shares. For Class B shares, the Fund may pay TCI annual distribution and service fees of up to 1.00% of the average daily net assets of the Fund’s Class B shares. For Class C shares, the Fund may pay TCI annual distribution and service fees of up to 1.00% of the average daily net assets of the Fund’s Class C shares. For Class P shares, the Fund may pay TCI annual distribution and service fees of up to 0.25% of the average daily net assets of the Fund’s Class P shares.

TCI may use the fees payable under the Distribution Plan as it deems appropriate to pay for activities or expenses primarily intended to result in the sale of the Class A, Class B, Class C, or Class P shares, or in personal service to and/or maintenance of these shareholder accounts. In the case that the Fund or any of its classes of shares that are closed to new investors or investments, TCI also may use the fees payable under the Distribution Plan to make payments to brokers and other financial intermediaries for past sales and distribution efforts. For each class, these activities and expenses may include, but are not limited to:

• Compensation to employees of TCI;

• Compensation to and expenses of TCI and other selected dealers who engage in or otherwise support the distribution of shares or who service shareholder accounts;

• In the case that the Fund or a class of the Fund’s shares is closed to new investors or investments, payment for services to and for maintenance of existing shareholder accounts and compensation of broker-dealers or other intermediaries for past sales and distribution efforts;

• The costs of printing and distributing prospectuses, statements of additional information and reports for other than existing shareholders; and

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• The cost of preparing, printing and distributing sales literature and advertising materials.

Under the Distribution Plan, as required by Rule 12b-1, the Board of Trustees will review, at least quarterly, a written report provided by TCI of the amounts expended in distributing and servicing Class A, Class B, Class C, or Class P shares of the Fund and the purpose for which such expenditures were made. For so long as the Plan is in effect, selection and nomination of the Trustees who are not interested persons of the Fund shall be committed to the discretion of the Trustees who are not interested persons of the Fund.

The Distribution Plan may be terminated as to a class of shares of the Fund at any time by vote of a majority of the Independent Trustees, or by vote of a majority of the outstanding voting securities of the applicable class. The Plan may be amended by vote of the Trustees, including a majority of the Independent Trustees of the Fund that have no direct or indirect financial interest in the operation of the Distribution Plan or any agreement relating thereto, cast in person at a meeting called for that purpose. Any amendment of the Distribution Plan that would materially increase the costs to a particular class of shares of the Fund requires approval by the shareholders of that class. The Distribution Plan will remain in effect for successive one year periods, so long as such continuance is approved annually by vote of the Fund’s Trustees, including a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such continuance.

The Fund had not commenced operations prior to the date of this SAI, and as such, there is no historical distribution fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.

NET ASSET VALUE DETERMINATION

The price at which shares are purchased or redeemed is the net asset value per share (“NAV”) that is next calculated following receipt and acceptance of a purchase order in good order or receipt of a redemption order in good order by the fund or an authorized intermediary.

When Share Price is Determined

The NAV of the Fund is determined on each day the New York Stock Exchange (“NYSE”) is open for business. The NAV is not determined on days when the NYSE is closed (generally, New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas). Foreign securities may trade in their primary markets on weekends or other days when a fund does not price its shares (therefore, the NAV of a fund holding foreign securities may change on days when shareholders will not be able to buy or sell shares of the funds).

Investors may purchase shares of the Fund at the “offering price” of the shares, which is the net asset value per share plus any applicable initial sales charge.

Purchase orders received in good order and accepted, and redemption orders received in good order, before the close of business on the NYSE, usually 4:00 p.m. Eastern Time, receive the NAV as determined at the close of the NYSE that day (plus or minus applicable sales charges). Purchase and redemption requests received after the NYSE is closed receive the NAV determined as of the close of the NYSE the next day the NYSE is open.

Purchase orders for shares of the Transamerica asset allocation funds that are received in good order and accepted before the close of business on the NYSE receive the NAV determined as of the close of the NYSE that day. For direct purchases, corresponding orders for shares of the underlying constituent funds are priced on the same day that orders for shares of the asset allocation funds are received and accepted. For purchases of shares of the Transamerica asset allocation funds through the NSCC, orders for shares of the underlying constituent funds will be placed after the receipt and acceptance of the settled purchase order for shares of the asset allocation funds. For investments in separate accounts of insurance companies that invest in Class I

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shares, orders for Class I shares will be placed after the receipt and acceptance of the investment in the insurance company separate account.

How NAV is Determined

The NAV of the Fund (or each class thereof) is calculated by taking the value of its net assets and dividing by the number of shares of the Fund (or class) that are then outstanding.

The Board of Trustees has approved procedures to be used to value the Fund’s securities for the purposes of determining the Fund’s NAV. The valuation of the securities of the Fund is determined in good faith by or under the direction of the Board. The Board has delegated certain valuation functions for the Fund to TAM.

In general, securities and other investments are valued based on market value priced at the close of regular trading on the NYSE. Fund securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-denominated foreign securities or ADRs, are valued at the closing price on the exchange or system where the security is principally traded. With respect to securities traded on the NASDAQ/NMS, such closing price may be the last reported sale price or the NASDAQ Official Closing Price (“NOCP”). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value should be determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales for that day on the exchange or system where the security is principally traded, then the value should be determined with reference to the last sale price or the NOCP, if applicable, on any other exchange or system. If there have been no sales for that day on any exchange or system, a security is valued at the closing bid quotes on the exchange or system where the security is principally traded, or at the NOCP, if applicable. Foreign securities traded on U.S. exchanges are generally priced using last sale price regardless of trading activity. Securities traded over the counter are valued at the mean of the last bid and asked prices. The market price for debt obligations is generally the price supplied by an independent third party pricing service approved by the Fund’s Board, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Investments in securities maturing in 60 days or less may be valued at amortized cost. Foreign securities generally are valued based on quotations from the primary market in which they are traded, and are converted from the local currency into U.S. dollars using current exchange rates. Market quotations for securities prices may be obtained from automated pricing services. Shares of open-end investment companies are generally valued at the net asset value per share reported by that investment company.

When a market quotation for a security is not readily available (which may include closing prices deemed to be unreliable because of the occurrence of a subsequent event), a valuation committee appointed by the Board of Trustees may, in good faith, establish a fair value for the security in accordance with fair valuation procedures adopted by the Board. The types of securities for which such fair value pricing may be required include, but are not limited to: foreign securities, where a significant event occurs after the close of the foreign market on which such security principally trades that is likely to have changed the value of such security, or the closing value is otherwise deemed unreliable; securities of an issuer that has entered into a restructuring; securities whose trading has been halted or suspended; fixed-income securities that have gone into default and for which there is no current market value quotation; and securities that are restricted as to transfer or resale. The Fund uses a fair value model developed by an independent third party pricing service to price foreign equity securities on days when there is a certain percentage change in the value of a domestic equity security index, as such percentage may be determined by TAM from time to time.

Valuing securities in accordance with fair value procedures involves greater reliance on judgment than valuing securities based on readily available market quotations. The valuation committee makes fair value determinations in good faith in accordance with the Fund’s valuation procedures. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service. There can be no assurance that the Fund could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the Fund determines its NAV per share.

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DIVIDENDS AND OTHER DISTRIBUTIONS

CLASS A, CLASS B, CLASS C, CLASS I, AND CLASS P SHARES.

An investor may choose among several options with respect to dividends and capital gains distributions payable to the investor. Dividends or other distributions will be paid in full and fractional shares at the net asset value determined as of the ex-dividend date unless the shareholder has elected another distribution option as described in the Information Statement/Prospectus. Transaction confirmations and checks for payments designated to be made in cash generally will be mailed on the payable date. The per share income dividends on Class I and Class P shares of the Fund are anticipated to be higher than the per share income dividends on Class A, Class B, and Class C shares of the Fund, as a result of higher distribution and service fees applicable to the Class A, Class B and Class C shares.

SHAREHOLDER ACCOUNTS

CLASS A, CLASS B, CLASS C, AND CLASS P SHARES ONLY (NOT APPLICABLE TO CLASS I SHARES).

Detailed information about general procedures for Shareholder Accounts and specific types of accounts is set forth in the Information Statement/Prospectus.

PURCHASE OF SHARES

CLASS A, CLASS B, CLASS C, CLASS I, AND CLASS P SHARES.

As stated in the Information Statement/Prospectus, the Fund currently offers investors a choice of five classes of shares: Class A, Class B, Class C, Class P and Class I shares. As stated in the Information Statement/Prospectus, Class I shares are currently primarily offered for investment in certain affiliated funds of funds (also referred to as “strategic asset allocation funds”). Class I shares are also made available to other investors, including institutional investors such as foreign insurers, domestic insurance companies, and their separate accounts, and eligible retirement plans whose recordkeepers or financial service firm intermediaries have entered into agreements with Transamerica Funds or its agents.

Class P shares are available only to former investors in Investor Class shares of the Transamerica Premier Funds.

Class A, Class B or Class C shares can be purchased through TCI or through broker-dealers or other financial institutions that have sales agreements with TCI. Shares of the Fund are sold at the net asset value per share as determined at the close of the regular session of business on the NYSE next occurring after a purchase order is received and accepted by the fund. (The applicable sales charge is added in the case of Class A shares.) The Information Statement/Prospectus contains detailed information about the purchase of fund shares.

Shareholders whose investments are transferred from one class of shares of a Transamerica fund to another class of shares of the same Transamerica fund for administrative or eligibility reasons also may qualify for a waiver or reduction of sales charges and/or redemption charges in connection with the exchange.

Information on sales charge reductions and/or waivers can also be found on the Transamerica Funds’ website at www.transamericafunds.com.

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RETIREMENT PLANS

CLASS A, CLASS B, CLASS P, AND CLASS C SHARES ONLY (NOT APPLICABLE TO CLASS I SHARES).

Transamerica Funds offers several types of retirement plans that an investor may establish to invest in shares of a fund with tax deductible dollars. Prototype retirement plan documents for Individual Retirement Accounts, Code Section 403(b)(7) plans and SEP-IRA and SIMPLE IRA plans are available by calling or writing TFS Customer Service. These plans require the completion of separate applications, which are also available from TFS Customer Service. State Street Bank and Trust Company, Kansas City, Missouri (“State Street”), acts as the custodian or trustee under these plans for which it charges an annual fee of $15.00 on each such fund account with a maximum of $30.00 per tax identification number. However, if your combined retirement plan and ESA account(s)’ balance per taxpayer identification number is more than $50,000, there is no fee. To receive additional information or forms on these plans, please call your financial adviser or Transamerica Funds Customer Service at [1-888-233-4339] or write to Transamerica Fund Services, Inc. at P.O. Box 219945, Kansas City, Missouri 64121-9945. No contribution to a retirement plan can be made until the appropriate forms to establish the plan have been completed. It is advisable for an investor considering the funding of any retirement plan to consult with an attorney, retirement plan consultant or financial or tax adviser with respect to the requirements of such plans and the tax aspects thereof.

REDEMPTION OF SHARES

Shareholders may redeem their shares at any time at a price equal to the net asset value per share next determined following receipt of a valid redemption order by the transfer agent, in proper form. Payment will ordinarily be made within three business days of the receipt of a valid redemption order. The value of shares on redemption may be more or less than the shareholder’s cost, depending upon the market value of the Fund’s net assets at the time of redemption. Class B shares and Class C shares and certain Class A share purchases are also subject to a contingent deferred sales charge upon certain redemptions. Class I and Class P shares are not subject to the contingent deferred sales charge.

Shares will normally be redeemed for cash, although the Fund retains the right to redeem its shares in kind under unusual circumstances in order to protect the interests of the remaining shareholders by the delivery of securities selected from its assets at its discretion. Transamerica Funds has, however, elected to be governed by Rule 18f-1 under the 1940 Act pursuant to which a fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1% of the net asset value of a fund during any 90-day period for any one shareholder. Should redemptions by any shareholder exceed such limitation, the fund will have the option of redeeming the excess in cash or in kind. If shares are redeemed in kind, the redeeming shareholder might incur brokerage costs in converting the assets to cash. The method of valuing securities used to make redemptions in kind will be the same as the method of valuing portfolio securities described under “Net Asset Value Determination,” and such valuation will be made as of the same time the redemption price is determined. Upon any distributions in kind, shareholders may appeal the valuation of such securities by writing to TFS.

Redemption of shares may be suspended, or the date of payment may be postponed, whenever: (1) trading on the NYSE is restricted, as determined by the SEC, or the NYSE is closed (except for holidays and weekends); (2) the SEC permits such suspension and so orders; or (3) an emergency exists as determined by the SEC so that disposal of securities and determination of net asset value is not reasonably practicable.

The Contingent Deferred Sales Charge (“CDSC”) is waived on redemptions of Class B and Class C (and Class A, when applicable) in the circumstances described below.

(a) Redemption upon Total Disability or Death

The Fund will waive the CDSC on redemptions following the death or total disability (as evidenced by a determination of the federal Social Security Administration) of a shareholder, but in the case of total disability

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only as to shares owned at the time of the initial determination of disability. The transfer agent or distributor will require satisfactory proof of death or disability before it determines to waive the CDSC.

(b) Redemption Pursuant to a Fund’s Systematic Withdrawal Plan

A shareholder may elect to participate in a systematic withdrawal plan (“SWP”) with respect to the shareholder’s investment in the Fund. Under the SWP, a dollar amount of a participating shareholder’s investment in the Fund will be redeemed systematically by the Fund on a periodic basis, and the proceeds paid in accordance with the shareholder’s instructions. The amount to be redeemed and frequency of the systematic withdrawals will be specified by the shareholder upon his or her election to participate in the SWP. The CDSC will be waived on redemptions made under the SWP subject to the limitations described below.

The amount of a shareholder’s investment in the Fund at the time election to participate in the SWP is made, with respect to the Fund, is hereinafter referred to as the “Initial Account Balance.” The amount to be systematically withdrawn from the Fund without the imposition of a CDSC may not exceed a maximum of 12% annually of the shareholder’s current Account value. The Fund reserves the right to change the terms and conditions of the SWP and the ability to offer the SWP.

Please Note: The amount redeemed under this waiver does not need to be under a systematic withdrawal plan. If it is not under a systematic withdrawal plan, it is limited to one redemption per calendar year up to 12% of your account balance at the time of redemption.

(c) Certain Retirement Plan Withdrawals

CDSC is also waived for accounts opened prior to April 1, 2000, on withdrawals from IRS qualified and nonqualified retirement plans, individual retirement accounts, tax-sheltered accounts, and deferred compensation plans, where such withdrawals are permitted under the terms of the plan or account. (This waiver does not apply to transfer of asset redemptions, broker directed accounts or omnibus accounts.)

(d) Purchases through Merrill Lynch, Pierce, Fenner & Smith Incorporated

Exchanges of Class C shares into a Transamerica Fund established on or after March 1, 2006 through Merrill Lynch, Pierce, Fenner & Smith Incorporated that previously were not subject to a CDSC will continue to not be subject to such fee. This CDSC waiver may be terminated at any time. New and/or subsequent purchases into Transamerica Funds established on or after March 1, 2006 will be subject to a 1.00% CDSC if shares are redeemed within 12 months of purchase.

TAXES

The Fund expects to qualify in its first year, and expects to continue to qualify, for treatment as a regulated investment company (a “RIC”) under the Code. In order to qualify for that treatment, a fund must distribute to its shareholders for each taxable year at least the sum of 90% of its investment company taxable income, computed without regard to the dividends-paid deduction, and 90% of its net exempt-interest income, if any (the “Distribution Requirement”). A fund must also meet several other requirements. These requirements include the following: (1) a fund must derive at least 90% of its gross income each taxable year from dividends, interest, payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, or other income (including gains from options, futures and forward contracts) derived with respect to its business of investing in such stock, securities or currencies, and net income derived from an interest in qualified publicly traded partnerships; (2) at the close of each quarter of a fund’s taxable year, at least 50% of the value of its total assets must be represented by cash and cash items, U.S. government securities, securities of other RICs and other securities (limited in respect of any one issuer of such other securities to an amount not greater than 5% of the value of the fund’s total assets and to not more than 10% of the outstanding voting securities of the issuer); and (3) at the close of each quarter of a fund’s taxable year, not more than 25% of the value of its total assets may be invested in securities (other than U.S. government securities or the securities of other RICs) of any one issuer, in securities (other than securities of other RICs) of two or more

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issuers that the fund controls and that are engaged in the same, similar or related trades or businesses, or in securities of one or more qualified publicly traded partnerships.

If a fund qualifies as a RIC and timely distributes to its shareholders substantially all of its net income and net capital gains, then the fund should have little or no income taxable to it under the Code. A fund may designate certain amounts retained as undistributed net capital gain in a notice to its shareholders, who (i) will be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their proportionate shares of the undistributed amount so designated, (ii) will be entitled to credit their proportionate shares of the income tax paid by the fund on that undistributed amount against their federal income tax liabilities and to claim refunds to the extent such credits exceed their liabilities and (iii) will be entitled to increase their tax basis, for federal income tax purposes, in their shares by an amount equal to the excess of the amount of undistributed net capital gain included in their respective income over their respective income tax credits.

For U.S. federal income tax purposes, a fund is permitted to carry forward a net capital loss for any year to offset its capital gains, if any, for up to eight years following the year of the loss. To the extent subsequent capital gains are offset by such losses, they will not result in U.S. federal income tax liability to the fund and may not be distributed as such to shareholders. A fund may not carry forward any losses other than net capital losses.

Assuming a fund has sufficient earnings and profits, its shareholders generally are required to include distributions from the fund (whether paid in cash or reinvested in additional shares) either as ordinary income, to the extent the distributions are attributable to the fund’s investment income (except for qualified dividend income as discussed below), net short-term capital gain and certain net realized foreign exchange gains, or as capital gains, or as capital gains, to the extent of the fund’s net capital gain (i.e., the fund’s net long-term capital gains over net short-term capital losses). If a fund fails to qualify as a RIC or fails to meet the Distribution Requirement, the fund will be subject to U.S. federal, and possibly state, corporate taxes on its taxable income and gains, and distributions to its shareholders will constitute ordinary dividend income to the extent of the fund’s available earnings and profits.

Distributions by a fund in excess of its current and accumulated earnings and profits will be treated as a return of capital to the extent of (and in reduction of) the shareholder’s tax basis in its shares, and any such amount in excess of that basis will be treated as gain from the sale of shares, as discussed below.

A fund will be subject to a nondeductible 4% excise tax to the extent it fails to distribute by the end of any calendar year substantially all of its ordinary income (for that calendar year) and capital gain net income (for the one-year period generally ending on October 31 of that year), increased or decreased by certain other amounts. The Fund intends to distribute annually a sufficient amount of any taxable income and capital gains so as to avoid liability for this excise tax.

Although dividends generally will be treated as distributed when paid, any dividend declared by a fund in October, November or December, payable to shareholders of record during such a month, and paid during the following January will be treated for U.S. federal income tax purposes as received by shareholders on December 31 of the calendar year in which it was declared. In addition, certain other distributions made after the close of a taxable year of a fund may be “spilled back” and treated for certain purposes as paid by the fund during such taxable year. In such case, shareholders generally will be treated as having received such dividends in the taxable year in which the distributions were actually made. For purposes of calculating the amount of a RIC’s undistributed income and gain subject to the 4% excise tax described above, such “spilled back” dividends are treated as paid by the RIC when they are actually paid.

U.S. federal income tax law generally provides for a maximum tax rate for individual taxpayers of 15% on long-term capital gains and on certain dividends on corporate stock. These rates do not apply to corporate taxpayers. Under current law, the rates will not apply to any taxpayers in taxable years beginning after December 31, 2010.

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The following are guidelines for how certain distributions by a fund to individual taxpayers are generally treated for U.S. federal income tax purposes:

• Distributions of net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) will be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets).

• Distributions designated by a fund as “qualified dividend income,” as described below, may also be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets).

• Other distributions, including distributions of earnings from other dividends paid to the fund, interest income, other types of ordinary income and short-term capital gains, will be taxed at the ordinary income tax rate applicable to the taxpayer.

• Qualified dividend income generally means dividend income received from a fund’s investments in common and preferred stock of U.S. companies and stock of certain “qualified foreign corporations,” provided that certain holding period and other requirements are met by both the fund and the shareholders. If 95% or more of a fund’s gross income (calculated without taking into account net capital gain from sales or other dispositions of stock or securities) consists of qualified dividend income, that fund may designate all distributions of such income as qualified dividend income.

A foreign corporation is treated as a qualified foreign corporation for this purpose if it is incorporated in a possession of the United States or it is eligible for the benefits of certain income tax treaties with the United States and meets certain additional requirements. Certain foreign corporations that are not otherwise qualified foreign corporations will be treated as qualified foreign corporations with respect to dividends paid by them if the stock with respect to which the dividends are paid is readily tradable on an established securities market in the United States. Passive foreign investment companies are not qualified foreign corporations for this purpose.

A dividend that is attributable to qualified dividend income of a fund and that is paid by the fund to a shareholder will not be taxable as qualified dividend income to such shareholder (1) if the dividend is received with respect to any share of the fund held for fewer than 61 days during the 121-day period beginning on the date which is 60 days before the date on which such share became “ex-dividend” with respect to such dividend, (2) to the extent that the shareholder is under an obligation (whether pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property, or (3) if the shareholder elects to have the dividend treated as investment income for purposes of the limitation on deductibility of investment interest. The “ex-dividend” date is the date on which the owner of the share at the commencement of such date is entitled to receive the next issued dividend payment for such share even if the share is sold by the owner on that date or thereafter.

Certain dividends received by a fund from U.S. corporations (generally, dividends received by the fund in respect of any share of stock (1) with a tax holding period of at least 46 days during the 91-day period beginning on the date that is 45 days before the date on which the stock becomes ex-dividend as to that dividend and (2) that is held in an unleveraged position) and distributed and designated by the fund may be eligible for the 70% dividends-received deduction generally available to corporations under the Code. Certain preferred stock must have a holding period of at least 91 days during the 181-day period beginning on the date that is 90 days before the date on which the stock becomes ex-dividend as to that dividend in order to be eligible. Capital gain dividends distributed to a fund from other RICs are not eligible for the dividends-received deduction. In order to qualify for the deduction, corporate shareholders must meet the minimum holding period requirement stated above with respect to their fund shares, taking into account any holding period reductions from certain hedging or other transactions or positions that diminish their risk of loss with respect to their fund shares, and, if they borrow to acquire or otherwise incur debt attributable to fund shares, they may be denied a portion of the dividends-received deduction with respect to those shares. The entire dividend, including the otherwise deductible amount, will be included in determining the excess, if any, of a corporation’s adjusted current

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earnings over its alternative minimum taxable income, which may increase a corporation’s alternative minimum tax liability. Any corporate shareholder should consult its tax advisor regarding the possibility that its tax basis in its shares may be reduced, for U.S. federal income tax purposes, by reason of “extraordinary dividends” received with respect to the shares and, to the extent such basis would be reduced below zero, current recognition of income may be required.

Any fund distribution will have the effect of reducing the per share net asset value of shares in the fund by the amount of the distribution. Shareholders purchasing shares shortly before the record date of any distribution that is not declared daily may thus pay the full price for the shares and then effectively receive a portion of the purchase price back as a taxable distribution.

The U.S. federal income tax status of all distributions, including the portion of such distributions which may qualify for treatment as qualified dividend income, will be reported to shareholders annually.

If a fund is the holder of record of any stock on the record date for any dividends payable with respect to such stock, such dividends will be included in the fund’s gross income not as of the date received, but as of the later of (a) the date such stock became ex-dividend with respect to such dividends or (b) the date the fund acquired such stock. Accordingly, in order to satisfy its income distribution requirements, a fund may be required to pay dividends based on anticipated earnings, and shareholders may receive dividends in an earlier year than would otherwise be the case.

Upon the sale or other disposition of fund shares, or upon receipt of a distribution in complete liquidation of a fund, a shareholder usually will realize a capital gain or loss. This capital gain or loss may be long-term or short-term, generally depending upon the shareholder’s holding period for the shares. For tax purposes, a loss will be disallowed on the sale or exchange of shares if the disposed of shares are replaced (including replacement by shares acquired pursuant to a dividend reinvestment plan) within a 61-day period beginning 30 days before and ending 30 days after the date of the sale or exchange of such shares. Should the replacement of such shares fall within this 61-day period, the basis of the acquired shares will be adjusted to reflect the disallowed loss. Any loss realized by the shareholder on its disposition of fund shares held by the shareholder for six months or less will be treated as a long-term capital loss to the extent of any amounts treated as distributions to the shareholder of long-term capital gain with respect to such shares (including any amounts credited to the shareholder as undistributed capital gains).

Under Treasury regulations, if a shareholder recognizes a loss with respect to fund shares of $2 million or more for an individual shareholder, or $10 million or more for a corporate shareholder, in any single taxable year (or certain greater amounts over a combination of years), the shareholder must file with the IRS a disclosure statement on Form 8886. Shareholders who own portfolio securities directly are in many cases excepted from this reporting requirement but, under current guidance, shareholders of regulated investment companies are not excepted. A shareholder who fails to make the required disclosure to the IRS may be subject to substantial penalties. The fact that a loss is reportable under these regulations does not affect the legal determination of whether or not the taxpayer’s treatment of the loss is proper. Shareholders should consult with their tax advisors to determine the applicability of these regulations in light of their individual circumstances.

The Fund may be subject to withholding and other taxes imposed by foreign countries, including taxes on interest, dividends and capital gains with respect to its investments in those countries. Any such taxes would, if imposed, reduce the yield on or return from those investments. Tax conventions between certain countries and the U.S. may reduce or eliminate such taxes in some cases. If more than 50% of a fund’s total assets at the close of any taxable year consist of stock or securities of foreign corporations, the fund may elect to pass through to its shareholders their pro rata shares of qualified foreign taxes paid by the fund for that taxable year. If the fund so elects, shareholders would be required to include such taxes in their gross incomes (in addition to the dividends and distributions they actually receive), would treat such taxes as foreign taxes paid by them, and as described below may be entitled to a tax deduction for such taxes or a tax credit, subject to a holding period requirement and other limitations under the Code.

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Qualified foreign taxes generally include taxes that would be treated as income taxes under U.S. tax regulations but do not include most other taxes, such as stamp taxes, securities transaction taxes, and similar taxes. If a fund qualifies to make, and makes, the election described above, shareholders may deduct their pro rata portion of qualified foreign taxes paid by the fund for that taxable year in computing their income subject to U.S. federal income taxation or, alternatively, claim them as credits, subject to applicable limitations under the Code, against their U.S. federal income taxes. Shareholders who do not itemize deductions for U.S. federal income tax purposes will not, however, be able to deduct their pro rata portion of qualified foreign taxes paid by the fund, although such shareholders will be required to include their shares of such taxes in gross income if the fund makes the election described above. No deduction for such taxes will be permitted to individuals in computing their alternative minimum tax liability.

If a fund makes this election and a shareholder chooses to take a credit for the foreign taxes deemed paid by such shareholder, the amount of the credit that may be claimed in any year may not exceed the same proportion of the U.S. tax against which such credit is taken that the shareholder’s taxable income from foreign sources (but not in excess of the shareholder’s entire taxable income) bears to his entire taxable income. For this purpose, long-term and short-term capital gains the fund realizes and distributes to shareholders will generally not be treated as income from foreign sources in their hands, nor will distributions of certain foreign currency gains subject to Section 988 of the Code or of any other income realized by the fund that is deemed, under the Code, to be U.S.-source income in the hands of the fund. This foreign tax credit limitation may also be applied separately to certain specific categories of foreign-source income and the related foreign taxes. As a result of these rules, which may have different effects depending upon each shareholder’s particular tax situation, certain shareholders may not be able to claim a credit for the full amount of their proportionate share of the foreign taxes paid by a fund. Shareholders who are not liable for U.S. federal income taxes, including tax-exempt shareholders, will ordinarily not benefit from this election. If a fund does make the election, it will provide required tax information to shareholders. The Fund generally may deduct any foreign taxes that are not passed through to its shareholders in computing its income available for distribution to shareholders to satisfy applicable tax distribution requirements.

Passive Foreign Investment Companies – The Fund may invest in the stock of “passive foreign investment companies” (“PFICs”). A PFIC is a foreign corporation that, in general, meets either of the following tests: (1) at least 75% of its gross income is derived from passive investments; or (2) an average of at least 50% of its assets held during the taxable year produce, or are held for the production of, passive income. Under certain circumstances, a fund will be subject to federal income tax on gain from the disposition of PFIC shares and on certain distributions from a PFIC (collectively, “excess distributions”), plus interest thereon, even if the fund distributes the excess distributions as a taxable dividend to its shareholders. If a fund invests in a PFIC and elects in the first year in which it holds such investment (or if it elects subsequently and makes certain other elections) to treat the PFIC as a “qualified electing fund,” then in lieu of the foregoing tax and interest obligation, the fund will be required to include in income each year its pro rata share of the qualified electing fund’s annual ordinary earnings and net capital gain (the excess of net long-term capital gains over net short-term capital losses). This income inclusion is required even if the PFIC does not distribute such income and gains to the fund, and the amounts so included would be subject to the Distribution Requirement described above. In many instances it will be very difficult, if not impossible, to make this election because of certain requirements thereof. In order to distribute any such income and gains and satisfy the distribution requirements applicable to RICs, a fund may be required to liquidate portfolio securities that it might otherwise have continued to hold, potentially resulting in additional taxable gain or loss to the fund.

A fund may, in the alternative, elect to mark to market its PFIC stock at the end of each taxable year, with the result that unrealized gains are treated as though they were realized as of such date. Any such gains will be ordinary income rather than capital gain. In order for a fund making this election to distribute any such income and gains and satisfy the distribution requirements applicable to RICs, the fund may be required to liquidate portfolio securities that it might otherwise have continued to hold, potentially resulting in additional taxable gain or loss to the fund. If the mark-to-market election were made, tax at the fund level under the excess distribution

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rules would be eliminated, but a fund could still incur nondeductible interest charges if it makes the mark-to-market election in a year after the first taxable year in which it acquired the PFIC stock.

Options, Futures and Forward Contracts and Swap Agreements — Certain options, futures contracts, and forward contracts in which a fund may invest may be “Section 1256 contracts.” Gains or losses on Section 1256 contracts generally are considered 60% long-term and 40% short-term capital gains or losses; however, foreign currency gains or losses arising from certain Section 1256 contracts may be treated as ordinary income or loss. Also, Section 1256 contracts held by a fund at the end of each taxable year are “marked to market” with the result that unrealized gains or losses are treated as though they were realized. In order to distribute any such gains, satisfy the distribution requirements applicable to RICs and avoid taxation, a fund may be required to liquidate portfolio securities that it might otherwise have continued to hold, potentially resulting in additional taxable gain or loss to the fund.

Generally, the hedging transactions undertaken by a fund may result in “straddles” for U.S. federal income tax purposes. The straddle rules may affect the character of gains (or losses) realized by a fund. In addition, losses realized by a fund on positions that are part of a straddle may be deferred under the straddle rules, rather than being taken into account in calculating the taxable income for the taxable year in which such losses are realized. Because only a few regulations implementing the straddle rules have been promulgated, the tax consequences of transactions in options, futures, forward contracts, swap agreements and other financial contracts to a fund are not entirely clear. The transactions may increase the amount of short-term capital gain realized by a fund, which is taxed as ordinary income when distributed to shareholders.

A fund may make one or more of the elections available under the Code which are applicable to straddles. If a fund makes any of the elections, the amount, character and timing of the recognition of gains or losses from the affected straddle positions will be determined under rules that vary according to the election(s) made. The rules applicable under certain of the elections may operate to accelerate the recognition of gains or losses from the affected straddle positions.

Because application of the straddle rules may affect the character of gains or losses, defer losses and/or accelerate the recognition of gains or losses from the affected straddle positions, the amount which must be distributed to shareholders, and which will be taxed to shareholders as ordinary income or long-term capital gain, may be increased or decreased as compared to a fund that did not engage in such hedging transactions.

Because only a few regulations regarding the treatment of swap agreements, and related caps, floors and collars, have been implemented, the tax consequences of such transactions are not entirely clear. The Fund intends to account for such transactions in a manner deemed by it to be appropriate, but the Internal Revenue Service might not accept such treatment. If it did not, the status of the Fund as a RIC might be affected.

The requirements applicable to a fund’s qualification as a RIC may limit the extent to which a fund will be able to engage in transactions in options, futures contracts, forward contracts, swap agreements and other financial contracts.

Certain hedging activities may cause a dividend that would otherwise be subject to the lower tax rate applicable to qualified dividend income to instead be taxed at the rate of tax applicable to ordinary income.

Original Issue Discount — If a fund invests in certain pay-in-kind securities, zero coupon securities, deferred interest securities or, in general, any other securities with original issue discount (or with market discount if the fund elects to include market discount in income currently), the fund generally must accrue income on such investments for each taxable year, which generally will be prior to the receipt of the corresponding cash payments. However, a fund must distribute to its shareholders, at least annually, all or substantially all of its investment company taxable income (determined without regard to the deduction for dividends paid), including any such accrued income, to qualify for treatment as a regulated investment company under the Code and avoid U.S. federal income and excise taxes. Therefore, a fund may have to dispose of its portfolio securities to

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generate cash, or may have to borrow the cash, to satisfy distribution requirements. Such a disposition of securities may potentially result in additional taxable gain or loss to a fund.

Constructive Sales — These rules may affect timing and character of gain if a fund engages in transactions that reduce or eliminate its risk of loss with respect to appreciated financial positions. If a fund enters into certain transactions in property while holding substantially identical property, the fund will be treated as if it had sold and immediately repurchased the property and will be taxed on any gain (but not loss) from the constructive sale. The character of any gain from a constructive sale will depend upon the fund’s holding period in the property. Any loss from a constructive sale will be recognized when the property is subsequently disposed of, and the character of such loss will depend on the fund’s holding period and the application of various loss deferral provisions of the Code.

Foreign Currency Transactions — Under the Code, gains or losses attributable to fluctuations in exchange rates which occur between the time a fund accrues income or expenses denominated in a foreign currency (or determined by reference to the value of one or more foreign currencies) and the time that a fund actually receives or makes payment of such income or expenses, generally are treated as ordinary income or ordinary loss. Similarly, on disposition of debt securities denominated in a foreign currency and on disposition of certain futures contracts, forward contracts and options, gains or losses attributable to fluctuations in the value of foreign currency between the date of acquisition of the security or contract and the date of disposition generally are also treated as ordinary gain or loss. The Fund may elect to treat this foreign currency income as capital gain or capital loss.

Withholding – A fund is required to withhold (as “backup withholding”) 28% of reportable payments, including dividends, capital gain distributions and the proceeds of redemptions and exchanges or repurchases of fund shares (except for proceeds of redemptions of shares in funds that declare daily dividends), paid to shareholders who have not complied with certain IRS regulations. In order to avoid this withholding requirement, shareholders, other than certain exempt entities, must certify that the Social Security Number or other Taxpayer Identification Number they provide is correct and that they are not currently subject to backup withholding, or that they are exempt from backup withholding. A fund may nevertheless be required to backup withhold if it receives notice from the IRS or a broker that the number provided is incorrect or backup withholding is applicable as a result of previous underreporting of interest or dividend income.

Taxation of Non-U.S. Shareholders. Dividends from net investment income that are paid to a shareholder who, as to the United States, is a nonresident alien individual, a foreign corporation or a foreign estate or foreign trust (each, a “foreign shareholder”) may be subject to a withholding tax at a rate of 30% or any lower applicable tax rate established in a treaty between the United States and the shareholder’s country of residence. For fund taxable years beginning before January 1, 2010, dividends that are derived from “qualified net interest income” and dividends that are derived from “qualified short-term gain” may be exempt from the 30% withholding tax, provided that the distributing fund chooses to follow certain procedures. A fund may choose to not follow such procedures and there can be no assurance as to the amount, if any, of dividends that would not be subject to withholding. Qualified net interest income is a fund’s net income derived from U.S.-source interest and original issue discount, subject to certain exceptions and limitations. Qualified short-term gain generally means the excess of the net short-term capital gain of the fund for the taxable year over its net long-term capital loss, if any. The withholding rules described in this paragraph do not apply to a dividend paid to a foreign shareholder if the dividend income is “effectively connected with the shareholder’s conduct of a trade or business within the United States” and the shareholder provides appropriate tax forms and documentation. Backup withholding (described above) will not be imposed on foreign shareholders who are subject to the 30% withholding tax.

The treatment of dividends and other distributions by a fund to shareholders under the various state income tax laws may not parallel that under U.S. federal income tax law. Qualification as a RIC does not involve supervision of a fund’s management or of its investment policies and practices by any governmental authority.

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Shareholders are urged to consult their own tax advisors with specific reference to their own tax situations, including any federal, state, local or foreign tax liabilities.

PRINCIPAL SHAREHOLDERS

Because the Fund had not commenced operations prior to November 13, 2009, the Trustees and officers of the Fund did not beneficially own any securities of the Funds as of that date. For the same reason, to the knowledge of the management, as of November 13, 2009, no shareholders owned beneficially or of record 5% or more of the outstanding shares of a class of the Fund.

MISCELLANEOUS

ORGANIZATION

The Fund is a series of Transamerica Funds, a Delaware statutory trust that currently is governed by an Amended and Restated Declaration of Trust (“Declaration of Trust”) dated November 1, 2007. The Trust, which was organized in 2005, is the successor to a Massachusetts business trust named Transamerica IDEX Mutual Funds. Prior to 2004, that Massachusetts business trust was known as IDEX Mutual Funds, and prior to 1999, as IDEX Series Fund. On January 8, 2008, the Board of Trustees of the Trust unanimously approved the name change of Transamerica IDEX Mutual Funds to Transamerica Funds, effective March 1, 2008.

SHARES OF BENEFICIAL INTEREST

The Declaration of Trust permits Transamerica Funds to issue an unlimited number of shares of beneficial interest. Shares of Transamerica Funds are fully paid and nonassessable when issued. Shares of Transamerica Funds have no preemptive, cumulative voting, conversion or subscription rights. Shares of Transamerica Funds are fully transferable but Transamerica Funds is not bound to recognize any transfer until it is recorded on the books.

The shares of beneficial interest of the Fund are divided into several classes: Class A, Class B, Class C, Class I and Class P. Each class represents interests in the same assets of the Fund and differ as follows: each class of shares has exclusive voting rights on matters pertaining to its plan of distribution or any other matter appropriately limited to that class; the classes are subject to differing sales charges as described in the Information Statement/Prospectus; Class B, Class C and Class P shares are subject to ongoing distribution and service fees; each class may bear differing amounts of certain class-specific expenses; each class has a separate exchange privilege. Class P shares are available only to former investors in Investor Class shares of the Transamerica Premier Funds. Transamerica Funds does not anticipate that there will be any conflicts between the interests of holders of the different classes of shares of the Fund by virtue of these classes. On an ongoing basis, the Board of Trustees will consider whether any such conflict exists and, if so, take appropriate action. On any matter submitted to a vote of shareholders of a series or class, each full issued and outstanding share of that series or class has one vote.

The Declaration of Trust provides that each of the Trustees will continue in office until the termination of Transamerica Funds or until the next meeting of shareholders called for the purpose of considering the election or re-election of such Trustee or of a successor to such Trustee, and until his successor, if any, is elected, qualified and serving as a Trustee hereunder. Vacancies may be filled by a majority of the remaining trustees, subject to certain limitations imposed by the 1940 Act. Subject to the foregoing, shareholders have the power to vote for the election and removal of trustees, and on any other matters on which a shareholder vote is required by the 1940 Act or at the request of the Trustees.

INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM

PricewaterhouseCoopers, LLP, located at 4221 West Boy Scout Blvd., Suite 200, Tampa, FL 33607-5745, serves as independent registered certified public accounting firm for Transamerica Funds.

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CODES OF ETHICS

Transamerica Funds, TAM, TIM and TCI each has adopted a code of ethics, as required by applicable law, which is designed to prevent affiliated persons of Transamerica Funds, TAM, TIM and TCI from engaging in deceptive, manipulative, or fraudulent activities in connection with securities held or to be acquired by the Fund (which may also be held by persons subject to a code of ethics). There can be no assurance that the codes of ethics will be effective in preventing such activities.

PROXY VOTING POLICIES AND PROCEDURES

As detailed in the Transamerica Funds’ Proxy Voting Policies and Procedures below, Transamerica Funds uses the proxy voting policies and procedures of the sub-advisers to determine how to vote proxies relating to securities held by Transamerica Funds. The proxy voting policies and procedures of TAM and TIM, the Fund’s sub-adviser, are attached or summarized in Appendix A.

Transamerica Funds files Form N-PX, with the complete proxy voting records of the funds for the 12 months ended June 30^th, no later than August 31st of each year. The form is available without charge: (1) from Transamerica Funds, upon request by calling [1-888-233-4339]; and (2) on the SEC’s website at www.sec.gov.

TRANSAMERICA FUNDS PROXY VOTING POLICIES AND PROCEDURES.

I. Statement of Principle

Transamerica Funds seeks to assure that proxies received by the funds are voted in the best interests of the funds’ stockholders and have accordingly adopted these procedures.

II. Delegation of Proxy Voting/Adoption of Adviser and Sub-Adviser Policies

Transamerica Funds delegates the authority to vote proxies related to portfolio securities to Transamerica Asset Management, Inc. (the “Adviser”), as investment adviser to each fund, which in turn delegates proxy voting authority for most funds of the Trust to the Sub-Adviser retained to provide day-to-day portfolio management for that fund. The Board of Trustees of the Trust adopts the proxy voting policies and procedures of the Adviser and Sub-Advisers as the proxy voting policies and procedures (each a “Proxy Voting Policy”) that will be used by each of these respective entities when exercising voting authority on behalf of the Trust. These policies and procedures are attached hereto.

III. Annual Review of Proxy Voting Policies of Adviser and Sub-Advisers

No less frequently than once each calendar year, the Proxy Voting Administrator will request each Sub-Adviser to provide a current copy of its Proxy Voting Policy, or certify that there have been no material changes to its Proxy Voting Policy or that all material changes have been previously provided for review, and verify that such Proxy Voting Policy is consistent with those of the funds and Adviser. Any inconsistency between the Sub-Adviser’s Proxy Voting Policy and that of the funds or Adviser shall be reconciled by the Proxy Voting Administrator before presentation for approval by the Board.

The Proxy Voting Administrator will provide an electronic copy of each Board approved Proxy Voting Policy to Legal department for inclusion in applicable SEC filings.

IV. Securities on Loan

The Boards of Trustees of the Trust has authorized the Adviser, in conjunction with State Street Bank and Trust Company (“State Street”), to lend portfolio securities on behalf of the funds. Securities on loan generally are

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voted by the borrower of such securities. Should a Sub-Adviser to the funds wish to exercise its vote for a particular proxy, the Adviser will immediately contact State Street and terminate the loan.

Last Revised: July 1, 2008

FINANCIAL STATEMENTS

The Fund is newly organized and commenced operations on November 13, 2009. The Fund acquired the assets and assumed the liabilities of Transamerica Premier Diversified Equity Fund, Transamerica Premier Institutional Diversified Equity Fund, Transamerica Science & Technology and Transamerica Templeton Global on November 13, 2009 in exchange for shares of the Fund. As a result of the reorganization, the Fund is the accounting successor of Transamerica Premier Diversified Equity Fund. As accounting successor, the operating history of Transamerica Premier Diversified Equity Fund will be used for financial reporting purposes.

The financial statements and financial highlights of Transamerica Premier Diversified Equity Fund for the fiscal year ended December 31, 2008 appearing in the predecessor fund’s annual report, filed with the SEC on March 9, 2009 (Accession No. 0001104659-09-015539) are incorporated herein by reference. Those financial statements and financial highlights have been audited by Ernst & Young LLP, independent registered certified public accounting firm, as indicated in their report thereon, and are incorporated herein by reference in reliance upon such report, given on the authority of Ernst & Young LLP as experts in accounting and auditing.

Transamerica Premier Diversified Equity Fund’s annual report includes the financial statements referenced above and is available without charge upon request by calling Customer Service at (888) 233-4339.

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APPENDIX A

Transamerica Asset Management, Inc.

PROXY VOTING POLICIES AND PROCEDURES (“TAM Proxy Policy”)

INTRODUCTION

Normally, clients for which Transamerica Investment Management, LLC (“TIM”) has full discretionary investment authority expect TIM to vote proxies in accordance with TIM’s Proxy Voting Policy (the “Policy”). As such, TIM will vote on behalf of all accounts for which it has discretionary authority unless clients notify TIM in writing that they have retained the authority to vote their own proxies. Clients may also ask TIM to vote their proxies in accordance with specific Client Proxy guidelines.

STATEMENT OF POLICY

It is the policy of TIM to vote proxies in the best interest of its clients at all times.

TIM has proxy voting policy guidelines (the “Guidelines”) regarding certain issues that may come before shareholders from time to time. These Guidelines provide a roadmap for arriving at voting decisions and are not meant to be exhaustive of all issues that may be raised in any or all proxy ballots. The Guidelines are attached to this Policy as Appendix A.

PROXY COMMITTEE

In order to implement and monitor this Policy, TIM shall establish a Proxy Committee (the “Committee”), which will have responsibility for review of proxies voted by or to be voted by TIM, as well as to resolve issues which may arise in the process of voting proxies.

The Committee shall meet at a minimum annually and on an as needed basis. It shall not be required that the Committee members meet in person; in fact, it is contemplated that certain Committee members will take part in meetings via teleconference. The Committee shall consist of at least one Portfolio Manager, a member of the Legal/Compliance department, and other staff members of TIM as may be designated from time to time. Committee members may select designees in the event that they are unable to convene with the Committee.

It shall be the Committee’s responsibility to ensure that proxy votes are made in accordance with the Policy. Issues shall be raised to the Committee when needed and as appropriate to effectively carry out TIM’s proxy decisions. When applicable, the Committee shall review written materials pertinent to the vote at hand and shall hear verbal opinions from relevant portfolio managers and/or analysts as needed to fully consider the investment merits of the vote. Committee decisions and a record of Committee meetings shall be recorded and maintained by the Legal/Compliance department.

USE OF INDEPENDENT THIRD PARTY

TIM will maintain the services of a qualified independent third party (the “Independent Third Party”) to provide guidance on proxy voting issues. The Independent Third Party selected by TIM is RiskMetrics Group. TIM will consider the research provided by the Independent Third Party when making voting decisions on proxy issues, however, the final determination on voting rests with TIM.

CONFLICTS OF INTEREST BETWEEN TIM AND CLIENTS

TIM recognizes the potential for material conflicts that may arise between its own interests and those of the Clients. To address these concerns, TIM will take one of the following steps to avoid any impropriety or the

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appearance of impropriety: a) Vote in accordance with the recommendation of the Independent Third Party; or b) Obtain the consent(s) of the Client(s) whose accounts are involved in the conflict.

PROVISION OF TIM PROXY POLICY TO CLIENTS

TIM will make available to all Clients a copy of its Policy by maintaining a current version of the Policy on its website (www.timllc.com). Also, a copy of the Policy will be mailed to any Client at any time upon request.

The following is a concise summary of TIM’s proxy voting policy guidelines.

1. Auditors

Vote FOR proposals to ratify auditors, unless any of the following apply:

• An auditor has a financial interest in or association with the company, and is therefore not independent

• Fees for non-audit services are excessive, or

• There is reason to believe that the independent auditor has rendered an opinion that is neither accurate nor indicative of the company’s financial position.

2. Board of Directors

Voting on Director Nominees in Uncontested Elections

Votes on director nominees should be made on a CASE-BY-CASE basis, examining the following factors: independence of the board and key board committees, attendance at board meetings, corporate governance provisions and takeover activity, long-term company performance, responsiveness to shareholder proposals, any egregious board actions, and any excessive non-audit fees or other potential auditor conflicts.

Classification/Declassification of the Board

Vote AGAINST proposals to classify the board.

Vote FOR proposals to repeal classified boards and to elect all directors annually.

Independent Chairman (Separate Chairman/CEO)

Vote on a CASE-BY-CASE basis shareholder proposals requiring that the positions of chairman and CEO be held separately. Because some companies have governance structures in place that counterbalance a combined position, certain factors should be taken into account in determining whether the proposal warrants support. These factors include the presence of a lead director, board and committee independence, governance guidelines, company performance, and annual review by outside directors of CEO pay.

Majority of Independent Directors/Establishment of Committees

Vote FOR shareholder proposals asking that a majority or more of directors be independent unless the board composition already meets the proposed threshold by TIM’s definition of independence.

Vote FOR shareholder proposals asking that board audit, compensation, and/or nominating committees be composed exclusively of independent directors if they currently do not meet that standard.

3. Shareholder Rights

Shareholder Ability to Act by Written Consent

Vote AGAINST proposals to restrict or prohibit shareholder ability to take action by written consent.

Vote FOR proposals to allow or make easier shareholder action by written consent.

Shareholder Ability to Call Special Meetings

Vote AGAINST proposals to restrict or prohibit shareholder ability to call special meetings.

Vote FOR proposals that remove restrictions on the right of shareholders to act independently of management.

Supermajority Vote Requirements

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Vote AGAINST proposals to require a supermajority shareholder vote.

Vote FOR proposals to lower supermajority vote requirements.

Cumulative Voting

Vote AGAINST proposals to eliminate cumulative voting.

Vote proposals to restore or permit cumulative voting on a CASE-BY-CASE basis relative to the company’s other governance provisions.

Confidential Voting

Vote FOR shareholder proposals requesting that corporations adopt confidential voting, use independent vote tabulators and use independent inspectors of election, as long as the proposal includes a provision for proxy contests as follows: In the case of a contested election, management should be permitted to request that the dissident group honor its confidential voting policy. If the dissidents agree, the policy remains in place. If the dissidents will not agree, the confidential voting policy is waived.

Vote FOR management proposals to adopt confidential voting.

4. Proxy Contests

Voting for Director Nominees in Contested Elections

Votes in a contested election of directors must be evaluated on a CASE-BY-CASE basis, considering the factors that include the long-term financial performance, management’s track record, qualifications of director nominees (both slates), and an evaluation of what each side is offering shareholders.

5. Poison Pills

Vote FOR shareholder proposals that ask a company to submit its poison pill for shareholder ratification. Review on a CASE-BY-CASE basis shareholder proposals to redeem a company’s poison pill and management proposals to ratify a poison pill.

6. Mergers and Corporate Restructurings

Vote CASE-BY-CASE on mergers and corporate restructurings based on such features as the fairness opinion, pricing, strategic rationale, and the negotiating process.

7. Reincorporation Proposals

Proposals to change a company’s state of incorporation should be evaluated on a CASE-BY-CASE basis, giving consideration to both financial and corporate governance concerns, including the reasons for reincorporating, a comparison of the governance provisions, and a comparison of the jurisdictional laws. Vote FOR reincorporation when the economic factors outweigh any neutral or negative governance changes.

8. Capital Structure

Common Stock Authorization

Votes on proposals to increase the number of shares of common stock authorized for issuance are determined on a CASE-BY-CASE basis.

Vote AGAINST proposals at companies with dual-Class Capital structures to increase the number of authorized shares of the class of stock that has superior voting rights.

Vote FOR proposals to approve increases beyond the allowable increase when a company’s shares are in danger of being delisted or if a company’s ability to continue to operate as a going concern is uncertain.

Dual-class Stock

Vote AGAINST proposals to create a new class of common stock with superior voting rights.

Vote FOR proposals to create a new class of nonvoting or subvoting common stock if:

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It is intended for financing purposes with minimal or no dilution to current shareholders

It is not designed to preserve the voting power of an insider or significant shareholder

9. Executive and Director Compensation

Votes with respect to compensation plans should be determined on a CASE-BY-CASE basis. TIM reviews Executive and Director compensation plans (including broad-based option plans) in the context of the transfer of shareholder wealth. This review encompasses not only a comparison of a plan relative to peer companies, but also on an absolute basis, considering the cost of the plan vs. the operating income and overall profitability of the firm in question.

Vote AGAINST equity plans that explicitly permit repricing or where the company has a history of repricing without shareholder approval.

Management Proposals Seeking Approval to Reprice Options

Vote AGAINST proposals by management seeking approval to reprice options.

Employee Stock Purchase Plans

Votes on employee stock purchase plans should be determined on a CASE-BY-CASE basis.

Vote FOR employee stock purchase plans where all of the following apply:

• Purchase price is at least 85 percent of fair market value

• Offering period is 27 months or less, and

• Potential voting power dilution (VPD) is ten percent or less.

Vote AGAINST employee stock purchase plans where any of the opposite conditions obtain.

Shareholder Proposals on Compensation

Vote on a CASE-BY-CASE basis for all other shareholder proposals regarding executive and director pay, taking into account company performance, pay level versus peers, pay level versus industry, and long term corporate outlook.

10. Social and Environmental Issues

These issues cover a wide range of topics, including consumer and public safety, environment and energy, general corporate issues, labor standards and human rights, military business, and workplace diversity.

In general, vote CASE-BY-CASE. While a wide variety of factors goes into each analysis, the overall principal guiding all vote recommendations focuses on how the proposal will enhance the economic value of the company.

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Transamerica Investment Management, LLC

PROXY VOTING POLICY

INTRODUCTION

Normally, clients for which Transamerica Investment Management, LLC (“TIM”) has full discretionary investment authority expect TIM to vote proxies in accordance with TIM’s Proxy Voting Policy (the “Policy”). As such, TIM will vote on behalf of all accounts for which it has discretionary authority unless clients notify TIM in writing that they have retained the authority to vote their own proxies. Clients may also ask TIM to vote their proxies in accordance with specific Client Proxy guidelines.

STATEMENT OF POLICY

It is the policy of TIM to vote proxies in the best interest of its clients at all times. TIM has proxy voting policy guidelines (the “Guidelines”) regarding certain issues that may come before shareholders from time to time. These Guidelines provide a roadmap for arriving at voting decisions and are not meant to be exhaustive of all issues that may be raised in any or all proxy ballots. The Guidelines are attached to this Policy as Appendix A.

PROXY COMMITTEE

In order to implement and monitor this Policy, TIM shall establish a Proxy Committee (the “Committee”), which will have responsibility for review of proxies voted by or to be voted by TIM, as well as to resolve issues which may arise in the process of voting proxies.

The Committee shall meet at a minimum annually and on an as needed basis. It shall not be required that the Committee members meet in person; in fact, it is contemplated that certain Committee members will take part in meetings via teleconference. The Committee shall consist of at least one Portfolio Manager, a member of the Legal/Compliance department, and other staff members of TIM as may be designated from time to time. Committee members may select designees in the event that they are unable to convene with the Committee.

It shall be the Committee’s responsibility to ensure that proxy votes are made in accordance with the Policy. Issues shall be raised to the Committee when needed and as appropriate to effectively carry out TIM’s proxy decisions. When applicable, the Committee shall review written materials pertinent to the vote at hand and shall hear verbal opinions from relevant portfolio managers and/or analysts as needed to fully consider the investment merits of the vote. Committee decisions and a record of Committee meetings shall be recorded and maintained by the Legal/Compliance department.

USE OF INDEPENDENT THIRD PARTY

TIM will maintain the services of a qualified independent third party (the “Independent Third Party”) to provide guidance on proxy voting issues. The Independent Third Party selected by TIM is RiskMetrics Group. TIM will consider the research provided by the Independent Third Party when making voting decisions on proxy issues, however, the final determination on voting rests with TIM.

CONFLICTS OF INTEREST BETWEEN TIM AND CLIENTS

TIM recognizes the potential for material conflicts that may arise between its own interests and those of the Clients. To address these concerns, TIM will take one of the following steps to avoid any impropriety or the appearance of impropriety: a) Vote in accordance with the recommendation of the Independent Third Party; or b) Obtain the consent(s) of the Client(s) whose accounts are involved in the conflict.

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PROVISION OF TIM PROXY POLICY TO CLIENTS

TIM will make available to all Clients a copy of its Policy by maintaining a current version of the Policy on its website (www.timllc.com). Also, a copy of the Policy will be mailed to any Client at any time upon request.

The following is a concise summary of TIM’s proxy voting policy guidelines.

1. Auditors

Vote FOR proposals to ratify auditors, unless any of the following apply:

• An auditor has a financial interest in or association with the company, and is therefore not independent

• Fees for non-audit services are excessive, or

• There is reason to believe that the independent auditor has rendered an opinion that is neither accurate nor indicative of the company’s financial position.

2. Board of Directors

Voting on Director Nominees in Uncontested Elections

Votes on director nominees should be made on a CASE-BY-CASE basis, examining the following factors: independence of the board and key board committees, attendance at board meetings, corporate governance provisions and takeover activity, long-term company performance, responsiveness to shareholder proposals, any egregious board actions, and any excessive non-audit fees or other potential auditor conflicts.

Classification/Declassification of the Board

Vote AGAINST proposals to classify the board.

Vote FOR proposals to repeal classified boards and to elect all directors annually.

Independent Chairman (Separate Chairman/CEO)

Vote on a CASE-BY-CASE basis shareholder proposals requiring that the positions of chairman and CEO be held separately. Because some companies have governance structures in place that counterbalance a combined position, certain factors should be taken into account in determining whether the proposal warrants support. These factors include the presence of a lead director, board and committee independence, governance guidelines, company performance, and annual review by outside directors of CEO pay.

Majority of Independent Directors/Establishment of Committees

Vote FOR shareholder proposals asking that a majority or more of directors be independent unless the board composition already meets the proposed threshold by TIM’s definition of independence.

Vote FOR shareholder proposals asking that board audit, compensation, and/or nominating committees be composed exclusively of independent directors if they currently do not meet that standard.

3. Shareholder Rights

Shareholder Ability to Act by Written Consent

Vote AGAINST proposals to restrict or prohibit shareholder ability to take action by written consent.

Vote FOR proposals to allow or make easier shareholder action by written consent.

Shareholder Ability to Call Special Meetings

Vote AGAINST proposals to restrict or prohibit shareholder ability to call special meetings.

Vote FOR proposals that remove restrictions on the right of shareholders to act independently of management.

Supermajority Vote Requirements

Vote AGAINST proposals to require a supermajority shareholder vote.

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Vote FOR proposals to lower supermajority vote requirements.

Cumulative Voting

Vote AGAINST proposals to eliminate cumulative voting.

Vote proposals to restore or permit cumulative voting on a CASE-BY-CASE basis relative to the company’s other governance provisions.

Confidential Voting

Vote FOR shareholder proposals requesting that corporations adopt confidential voting, use independent vote tabulators and use independent inspectors of election, as long as the proposal includes a provision for proxy contests as follows: In the case of a contested election, management should be permitted to request that the dissident group honor its confidential voting policy. If the dissidents agree, the policy remains in place. If the dissidents will not agree, the confidential voting policy is waived.

Vote FOR management proposals to adopt confidential voting.

4. Proxy Contests

Voting for Director Nominees in Contested Elections

Votes in a contested election of directors must be evaluated on a CASE-BY-CASE basis, considering the factors that include the long-term financial performance, management’s track record, qualifications of director nominees (both slates), and an evaluation of what each side is offering shareholders.

5. Poison Pills

Vote FOR shareholder proposals that ask a company to submit its poison pill for shareholder ratification. Review on a CASE-BY-CASE basis shareholder proposals to redeem a company’s poison pill and management proposals to ratify a poison pill.

6. Mergers and Corporate Restructurings

Vote CASE-BY-CASE on mergers and corporate restructurings based on such features as the fairness opinion, pricing, strategic rationale, and the negotiating process.

7. Reincorporation Proposals

Proposals to change a company’s state of incorporation should be evaluated on a CASE-BY-CASE basis, giving consideration to both financial and corporate governance concerns, including the reasons for reincorporating, a comparison of the governance provisions, and a comparison of the jurisdictional laws. Vote FOR reincorporation when the economic factors outweigh any neutral or negative governance changes.

8. Capital Structure

Common Stock Authorization

Votes on proposals to increase the number of shares of common stock authorized for issuance are determined on a CASE-BY-CASE basis.

Vote AGAINST proposals at companies with dual-Class Capital structures to increase the number of authorized shares of the class of stock that has superior voting rights.

Vote FOR proposals to approve increases beyond the allowable increase when a company’s shares are in danger of being delisted or if a company’s ability to continue to operate as a going concern is uncertain.

Dual-class Stock

Vote AGAINST proposals to create a new class of common stock with superior voting rights.

Vote FOR proposals to create a new class of nonvoting or subvoting common stock if:

It is intended for financing purposes with minimal or no dilution to current shareholders

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It is not designed to preserve the voting power of an insider or significant shareholder

9. Executive and Director Compensation

Votes with respect to compensation plans should be determined on a CASE-BY-CASE basis. TIM reviews Executive and Director compensation plans (including broad-based option plans) in the context of the transfer of shareholder wealth. This review encompasses not only a comparison of a plan relative to peer companies, but also on an absolute basis, considering the cost of the plan vs. the operating income and overall profitability of the firm in question.

Vote AGAINST equity plans that explicitly permit repricing or where the company has a history of repricing without shareholder approval.

Management Proposals Seeking Approval to Reprice Options

Vote AGAINST proposals by management seeking approval to reprice options.

Employee Stock Purchase Plans

Votes on employee stock purchase plans should be determined on a CASE-BY-CASE basis.

Vote FOR employee stock purchase plans where all of the following apply:

• Purchase price is at least 85 percent of fair market value

• Offering period is 27 months or less, and

• Potential voting power dilution (VPD) is ten percent or less.

Vote AGAINST employee stock purchase plans where any of the opposite conditions obtain.

Shareholder Proposals on Compensation

Vote on a CASE-BY-CASE basis for all other shareholder proposals regarding executive and director pay, taking into account company performance, pay level versus peers, pay level versus industry, and long term corporate outlook.

10. Social and Environmental Issues

These issues cover a wide range of topics, including consumer and public safety, environment and energy, general corporate issues, labor standards and human rights, military business, and workplace diversity.

In general, vote CASE-BY-CASE. While a wide variety of factors goes into each analysis, the overall principal guiding all vote recommendations focuses on how the proposal will enhance the economic value of the company.

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APPENDIX B

PORTFOLIO MANAGERS

	Registered Investment		Other Pooled Investment
	Companies		Vehicles		Other Accounts
		Assets		Assets		Assets
Portfolio Manager	Number	Managed	Number	Managed	Number	Managed
Gary U. Rollé (lead)1	13	$4.17 billion	1	$88.2 million	80	$1.43 billion
Kirk R. Feldhus (co)1	0	$0	1	$10.92 million	0	$0
Thomas E. Larkin (co)1	0	$0	1	$11.02 million	0	$0
John D. Lawrence (co)2	0	$0	1	$20.32 million	1	$20.78 million
Peter O. Lopez (co)1	3	$236.4 million	1	$11.3 million	1	$23.56 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account
Gary U. Rollé (lead)1	0	$0	0	$0	0	$0
Kirk R. Feldhus (co)1	0	$0	0	$0	0	$0
Thomas E. Larkin (co)1	0	$0	0	$0	0	$0
John D. Lawrence (co)2	0	$0	0	$0	0	$0
Peter O. Lopez (co)1	0	$0	0	$0	0	$0

1	As of October 31, 2008.
2	As of December 31, 2008.

Conflict of Interest

At TIM, individual portfolio managers may manage multiple accounts for multiple clients. In addition to the sub-advisory management of series of Transamerica Funds (including the Fund), TIM manages separate accounts for institutions and individuals. TIM manages potential conflicts between accounts through its allocation policies and procedures, internal review processes and oversight by senior management and its board of directors. TIM has developed trade allocation policies to address potential conflicts in situations where two or more accounts participate in investment decisions involving the same securities using procedures that it considers to be fair and equitable.

Compensation

Portfolio managers, including the members of the executive team, are remunerated with a combination of base salary, performance-based bonus, and profit sharing or ownership interest. The overall compensation structure is reviewed annually for market competitiveness with an objective of offering compensation structures above the median as compared to our industry peers. For purposes of determining the level of performance-based compensation, potential track records (pre-tax) are based on full years of portfolio management for TIM. There are two weighted components taken into consideration for determining maximum incentive compensation amounts. These total 100% and consist of an objective and subjective component as further described below:

• 80% Objective-portfolio performance-based calculation; based upon relative rankings of track record and return formula criteria. A portion of the objective component is necessarily subjective taking into account such items as co/multi-management responsibilities; portfolio performance upon assignment; length of time managing portfolio; customized client benchmarks; etc., in determining the portfolio manager’s relative ranking. TIM’s senior management and its board of directors determine the criteria to be used for evaluating how the rankings are determined for each portfolio manager under this objective component.

• 20% Subjective-based upon additional contributions to the firm as a whole and consistent with responsibilities identified on position descriptions—for example, general research contribution,

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behavioral competencies (e.g. team contributions; decision making capabilities; work ethic), quality of investment ideas, managerial duties outside of core responsibility, as determined by the executive team.

Key investment personnel have ownership interests in TIM and are evaluated on an annual basis to determine additional allocations of ownership interest. Such interests entitle the owner to quarterly distribution of profits as well as certain liquidity features. The interests effectively vest over a determined time period so as to provide a retention incentive. This ownership feature is intended to create both stability and an entrepreneurial atmosphere at TIM.

Ownership of Securities

As of October 31, 2008 none of the portfolio managers beneficially owned shares in the Fund.

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PART C

OTHER INFORMATION

Item 15. Indemnification

Provisions relating to indemnification of the Registrant’s Trustees and employees are included in the Registrant’s Amended and Restated Declaration of Trust and Bylaws which are incorporated herein by reference.

Insofar as indemnification for liability arising under the Securities Act of 1933, as amended (the “1933 Act”), may be permitted to Trustees, officers and controlling persons, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification may be against public policy as expressed in the 1933 Act and may be, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by Registrant of expenses incurred or paid by a Trustee, officer or controlling person of Registrant in the successful defense of any action, suit or proceeding) is asserted by such Trustee, officer or controlling person in connection with the securities being registered, Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the 1933 Act and will be governed by the final adjudication of such issue.

Item 16. Exhibits

(1)	Amended and Restated Declaration of Trust (1)
(2)	By-laws (1)
(3)	Not applicable
(4)	Form of Agreement and Plan of Reorganization (See Exhibit A to the Information Statement/Prospectus)
(5)	See Exhibits 1 and 2

(6) (a) Investment Advisory Agreements

(i)	Transamerica Balanced (2)
(ii)	Transamerica Diversified Equity (to be filed by amendment)
(iii)	Transamerica Equity (3)
(iv)	Transamerica Legg Mason Partners All Cap (4)
(v)	Transamerica Growth Opportunities (3)
(vi)	Transamerica Flexible Income (1)

(b) Sub-Advisory Agreements

(i)	Transamerica Balanced (2)
(ii)	Transamerica Diversified Equity (to be filed by amendment)
(iii)	Transamerica Equity (3)
(iv)	Transamerica Legg Mason Partners All Cap (1)

(v)	Transamerica Growth Opportunities (3)
(vi)	Transamerica Flexible Income (4)

(7) (a) Underwriting Agreement (1)

(i)	Amended Schedule I dated July 1, 2009 (5)
(ii)	Amended Schedule I dated ______ (to be filed by amendment)

(b)	Dealer’s Sales Agreement (6)
(c)	Service Agreement (7)
(d)	Wholesaler’s Agreement (8)

(8)	Amended and Restated Board Members Deferred Compensation Plan dated May 1, 2008 (9)
(9)	Custody Agreement (10)

	(a)	Amended Fee Schedule dated February 1, 2008 (9)
(10)	(a)	Amended and Restated Plan of Distribution of the Registrant under Rule 12b-1 (1)

(i)	Amended Schedule A dated July 1, 2009 (5)
(ii)	Amended Schedule A dated ______ (to be filed by amendment)

(b) Amended and Restated Plan for Multiple Classes of Shares dated March 1, 2009 (9)

(i)	Amendment dated as of May 5, 2009 (5)
(ii)	Amended Schedule A dated July 1, 2009 (5)
(iii)	Amended Schedule A dated ______ (to be filed by amendment)

(11)	Opinions and Consent of Counsel as to the legality of the securities being registered (filed herein)
(12)	Form of Opinion of counsel supporting tax matters and consequences to shareholders discussed in Part A of the Registration Statement on Form N-14 (filed herein)

(13) (a) Transfer Agency Agreement (11)

(i) Amended Fee Schedule dated July 1, 2008 (9)

(b) Administrative Services Agreement (10)

(i) Amendment to Administrative Services Agreement (12)

(c) Form of amended and restated Expense Limitation Agreement (filed herein)

(14)	Consents of Independent Registered Certified Public Accounting Firms (filed herein)
(15)	Not applicable

(16)	(a)	Powers of Attorney (filed herein)
(17)	(a)	Code of Ethics — Joint Transamerica Funds and Transamerica Asset Management, Inc. (1)
	(b)	Code of Ethics — Transamerica Investment Management, LLC (15)
	(c)	Prospectuses dated March 1, 2009 and Statement of Additional Information of Transamerica Funds dated July 1, 2009, as supplemented, are filed herewith.
	(d)	Annual Report of Transamerica Funds for the year ended October 31, 2008 is filed herewith.
	(e)	Semi-Annual Report of Transamerica Funds for the period ended April 30, 2009 is filed herewith.

(f)	Prospectuses and Statement of Additional Information of Transamerica Premier Funds dated May 1, 2009, as supplemented, are filed herewith.
(g)	Annual Report of Transamerica Premier Funds for the year ended December 31, 2008 is filed herewith.
(h)	Semi-Annual Report of Transamerica Premier Funds for the period ended June 30, 2009 is filed herewith.

All exhibits previously filed are herein incorporated by reference

(1)	Filed previously with Post-Effective Amendment No. 89 to Registration Statement on February 28, 2008 (File No. 033-02659).
(2)	Filed previously with Post-Effective Amendment No. 61 to Registration Statement on October 1, 2004 (File No. 033-02659).
(3)	Filed previously with Post-Effective Amendment No. 83 to Registration Statement on December 21, 2006 (File No. 033-02659).
(4)	Filed previously with Post-Effective Amendment No. 85 to Registration Statement on March 1, 2007 (File No. 033-02659).
(5)	Filed previously with Post-Effective Amendment No. 97 to Registration Statement on July 1, 2009 (File No. 033-02659).
(6)	Filed previously with Post-Effective Amendment No. 50 to Registration Statement on November 12, 2002 (File No. 033-02659).
(7)	Filed previously with Post-Effective Amendment No. 31 to Registration Statement filed on September 2, 1999 (File No. 033-02659).
(8)	Filed previously with Post-Effective Amendment No. 25 to Registration Statement filed on January 31, 1997 (File No. 033-02659).
(9)	Filed previously with Post-Effective Amendment No. 95 to Registrant Statement on February 27, 2009 (File No. 033-02659).
(10)	Filed previously with Post-Effective Amendment No. 49 to Registration Statement on September 12, 2002 (File No. 033-02659).
(11)	Filed previously with Post-Effective Amendment No. 20 to Registration Statement filed on November 16, 1995 (File No. 033-02659).
(12)	Filed previously with Post-Effective Amendment No. 67 to Registration Statement on February 25, 2005 (File No. 033-02659).
(13)	Filed previously with Post-Effective Amendment No. 51 to Registration Statement on December 13, 2002 (File No. 033-02659).
(14)	Filed previously with Post-Effective Amendment No. 91 to Registrant Statement on June 10, 2008 (File No. 033-02659).
(15)	Filed previously with Post-Effective Amendment No. 77 to Registration Statement on March 1, 2006 (File No. 033-02659).

Item 17

(1) The undersigned registrant agrees that prior to any public reoffering of the securities registered through the use of a prospectus which is a part of this Registration Statement by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c) of the 1933 Act, the reoffering prospectus will contain the information called for by the applicable registration form for the reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.

(2)

The undersigned registrant agrees that every prospectus that is filed under paragraph (1) above will be filed as a part of an amendment to the Registration Statement and will not be used until the amendment is effective, and that, in determining any liability under the 1933 Act, each post-effective amendment shall be deemed to be a new registration statement for the securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering of them.

(3)

The undersigned registrant undertakes to file, by post-effective amendment, the final opinion of Bingham McCutchen LLP supporting the tax consequences of the proposed reorganizations as soon as practicable after the closing of the reorganizations.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this Registration Statement on Form N-14 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of St. Petersburg, State of Florida, on the 1st day of September, 2009.

TRANSAMERICA FUNDS
By:	/s/ John K. Carter
	John K. Carter
	President and Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated:

/s/ John K. Carter John K. Carter	Chairperson, Trustee, President and Chief Executive Officer	September 1, 2009
/s/ Sandra N. Bane Sandra N. Bane*	Trustee	September 1, 2009
/s/ Leo J. Hill Leo J. Hill*	Trustee	September 1, 2009
/s/ David W. Jennings David W. Jennings*	Trustee	September 1, 2009
/s/ Neal M. Jewell Neal M. Jewell*	Trustee	September 1, 2009
/s/ Russell A. Kimball, Jr. Russell A. Kimball, Jr.*	Trustee	September 1, 2009
/s/ Eugene M. Mannella Eugene M. Mannella*	Trustee	September 1, 2009
/s/ Norman R. Nielsen Norman R. Nielsen*	Trustee	September 1, 2009
/s/ Joyce G. Norden Joyce G. Norden*	Trustee	September 1, 2009
/s/ Patricia Sawyer Patricia Sawyer*	Trustee	September 1, 2009
/s/ John W. Waechter John W. Waechter*	Trustee	September 1, 2009
/s/ Joseph P. Carusone Joseph P. Carusone	Vice President, Treasurer and Principal Financial Officer	September 1, 2009

* By:	/s/ Dennis P. Gallagher	September 1, 2009
	Dennis P. Gallagher**

** Attorney-in-fact pursuant to powers of attorney previously filed or, with respect to David W. Jennings, pursuant to a power of attorney filed herein.

Exhibits Filed With
Form N-14

Transamerica Funds

EXHIBIT INDEX

Exhibit Number	Description of Exhibit
(11)	Opinion and Consent of Counsel
(12)	Forms of Opinion and Consent of Bingham McCutchen LLP
(13)(c)	Form of amended and restated Expense Limitation Agreement
(14)	Consents of Independent Registered Certified Public Accounting Firms
(16)	Powers of Attorney
(17)(c)	Prospectuses dated March 1, 2009 and Statement of Additional Information of Transamerica Funds dated July 1, 2009, as supplemented
(17)(d)	Annual Report of Transamerica Funds for the year ended October 31, 2008
(17)(e)	Semi-Annual Report of Transamerica Funds for the period ended April 30, 2009
(17)(f)	Prospectuses and Statement of Additional Information of Transamerica Premier Funds dated May 1, 2009, as supplemented
(17)(g)	Annual Report of Transamerica Premier Funds for the year ended December 31, 2008
(17)(h)	Semi-Annual Report of Transamerica Premier Funds for the period ended June 30, 2009

EX-99.11

Exhibit (11)

September 1, 2009

Transamerica Funds
570 Carillon Parkway
St. Petersburg, Florida 33716

Ladies and Gentlemen:

     We have acted as counsel to Transamerica Funds, a Delaware statutory trust (the “Trust”), in its individual capacity, and on behalf of its series, Transamerica Balanced (the “Acquiring Fund”), in connection with the Trust’s Registration Statement on Form N-14 to be filed with the Securities and Exchange Commission on or about September 1, 2009 (the “Registration Statement”), with respect to (1) the Acquiring Fund’s Class P shares of beneficial interest to be issued in exchange for the assets of Transamerica Premier Balanced Fund, a series of Transamerica Investors, Inc., a Maryland corporation, and (2) the Acquiring Fund’s Class A shares, Class B shares and Class C shares (together with the Class P shares, the “Shares”) of beneficial interest to be issued in exchange for the assets of Transamerica Value Balanced, a series of the Trust, as described in the Registration Statement (the “Merger”). You have requested that we deliver this opinion to you in connection with the Trust’s filing of the Registration Statement.

     In connection with the furnishing of this opinion, we have examined the following documents:

     (a) A certificate of the Secretary of State of the State of Delaware, dated as of a recent date, as to the existence of the Trust;

     (b) A copy, certified by the Secretary of State of the State of Delaware, dated as of a recent date, of the Trust’s Certificate of Trust, dated February 25, 2005, filed with the Secretary of State of the State of Delaware (the “Certificate of Trust”);

     (c) A certificate executed by the Secretary of the Trust, certifying as to, and attaching copies of, the Trust’s Amended and Restated Declaration of Trust (the “Declaration”), the Trust’s Amended and Restated By-Laws (the “By-Laws”), and the resolutions adopted by the Trustees of the Trust at a meeting held on July 21, 2009, authorizing the Merger and the issuance of the Shares on behalf of the Acquiring Fund (the “Resolutions”);

     (d) A printer’s proof, received on September 1, 2009, of the Registration Statement; and

     (e) A copy of the form of the Agreement and Plan of Reorganization to be entered into by the Trust, on behalf of the Acquiring Fund (the “Agreement and Plan of Reorganization”).

     In such examination, we have assumed the genuineness of all signatures, the conformity to the originals of all of the documents reviewed by us as copies, including conformed copies, the authenticity and completeness of all original documents reviewed by

Transamerica Funds
September 1, 2009
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us in original or copy form and the legal competence of each individual executing any document. We have assumed that the Registration Statement as filed with the Securities and Exchange Commission will be in substantially the form of the printer’s proof referred to in paragraph (d) above, and that the Agreement and Plan of Reorganization will be duly completed, executed and delivered by the parties thereto in substantially the form of the copy referred to in paragraph (e) above. We have also assumed for the purposes of this opinion that the Declaration, the Certificate of Trust, the Resolutions and the Agreement and Plan of Reorganization will not have been amended, modified or withdrawn and will be in full force and effect on the date of issuance of the Shares.

     This opinion is based entirely on our review of the documents listed above and such other documents as we have deemed necessary or appropriate for the purposes of this opinion and such investigation of law as we have deemed necessary or appropriate. We have made no other review or investigation of any kind whatsoever, and we have assumed, without independent inquiry, the accuracy of the information set forth in such documents.

     This opinion is limited solely to the Delaware Statutory Trust Act (which for this purpose includes applicable provisions of the Delaware Constitution and reported judicial decisions interpreting these laws) to the extent that the same may apply to or govern the transactions referred to herein, and we express no opinion with respect to the laws of any other jurisdiction or to any other laws of the State of Delaware. Further, we express no opinion as to any state or federal securities laws, including the securities laws of the State of Delaware. No opinion is given herein as to the choice of law or internal substantive rules of law which any tribunal may apply to such transaction. In addition, to the extent that the Declaration or the By-Laws refer to, incorporate or require compliance with, the Investment Company Act of 1940, as amended, or any other law or regulation applicable to the Trust, except for the Delaware Statutory Trust Act, as aforesaid, we have assumed compliance by the Trust with such Act and such other laws and regulations.

     We understand that all of the foregoing assumptions and limitations are acceptable to you.

     Based upon and subject to the foregoing and to the further assumptions and limitations hereinafter set forth, please be advised that it is our opinion that the Shares, when issued and sold in accordance with the Declaration and the Resolutions and for the consideration described in the Agreement and Plan of Reorganization, will be validly issued, fully paid and nonassessable.

     This opinion is given as of the date hereof and we assume no obligation to update this opinion to reflect any changes in law or any other facts or circumstances which may hereafter come to our attention. We hereby consent to the filing of this opinion as an exhibit to the Registration Statement.

Very truly yours,

/s/ Bingham McCutchen LLP

BINGHAM McCUTCHEN LLP

September 1, 2009

Transamerica Funds
570 Carillon Parkway
St. Petersburg, Florida 33716

Ladies and Gentlemen:

     We have acted as counsel to Transamerica Funds, a Delaware statutory trust (the “Trust”), in its individual capacity, and on behalf of its series, Transamerica Diversified Equity (the “Acquiring Fund”), in connection with the Trust’s Registration Statement on Form N-14 to be filed with the Securities and Exchange Commission on or about September 1, 2009 (the “Registration Statement”), with respect to (1) the Acquiring Fund’s Class P shares of beneficial interest to be issued in exchange for the assets of Transamerica Premier Diversified Equity Fund, a series of Transamerica Investors, Inc., a Maryland corporation, (2) the Acquiring Fund’s Class I shares of beneficial interest to be issued in exchange for the assets of Transamerica Premier Institutional Diversified Equity Fund, a series of Transamerica Investors, Inc., and the assets of Transamerica Science & Technology, a series of the Trust, and (3) the Acquiring Fund’s Class A shares, Class B shares and Class C shares (together with Class P shares and Class I shares, the “Shares”) of beneficial interest to be issued in exchange for the assets of Transamerica Science & Technology and Transamerica Templeton Global, each a series of the Trust, as described in the Registration Statement (the “Merger”). You have requested that we deliver this opinion to you in connection with the Trust’s filing of the Registration Statement.

     In connection with the furnishing of this opinion, we have examined the following documents:

     (a) A certificate of the Secretary of State of the State of Delaware, dated as of a recent date, as to the existence of the Trust;

     (b) A copy, certified by the Secretary of State of the State of Delaware, dated as of a recent date, of the Trust’s Certificate of Trust, dated February 25, 2005, filed with the Secretary of State of the State of Delaware (the “Certificate of Trust”);

     (c) A certificate executed by the Secretary of the Trust, certifying as to, and attaching copies of, the Trust’s Amended and Restated Declaration of Trust (the “Declaration”), the Trust’s Amended and Restated By-Laws (the “By-Laws”), and the resolutions adopted by the Trustees of the Trust at a meeting held on July 21, 2009, authorizing the Merger and the issuance of the Shares on behalf of the Acquiring Fund (the “Resolutions”);

     (d) A printer’s proof, received on September 1, 2009, of the Registration Statement; and

     (e) A copy of the form of the Agreement and Plan of Reorganization to be entered into by the Trust, on behalf of the Acquiring Fund (the “Agreement and Plan of Reorganization”).

Transamerica Funds
September 1, 2009
Page 2

     In such examination, we have assumed the genuineness of all signatures, the conformity to the originals of all of the documents reviewed by us as copies, including conformed copies, the authenticity and completeness of all original documents reviewed by us in original or copy form and the legal competence of each individual executing any document. We have assumed that the Registration Statement as filed with the Securities and Exchange Commission will be in substantially the form of the printer’s proof referred to in paragraph (d) above, and that the Agreement and Plan of Reorganization will be duly completed, executed and delivered by the parties thereto in substantially the form of the copy referred to in paragraph (e) above. We have also assumed for the purposes of this opinion that the Declaration, the Certificate of Trust, the Resolutions and the Agreement and Plan of Reorganization will not have been amended, modified or withdrawn and will be in full force and effect on the date of issuance of the Shares.

     This opinion is based entirely on our review of the documents listed above and such other documents as we have deemed necessary or appropriate for the purposes of this opinion and such investigation of law as we have deemed necessary or appropriate. We have made no other review or investigation of any kind whatsoever, and we have assumed, without independent inquiry, the accuracy of the information set forth in such documents.

     This opinion is limited solely to the Delaware Statutory Trust Act (which for this purpose includes applicable provisions of the Delaware Constitution and reported judicial decisions interpreting these laws) to the extent that the same may apply to or govern the transactions referred to herein, and we express no opinion with respect to the laws of any other jurisdiction or to any other laws of the State of Delaware. Further, we express no opinion as to any state or federal securities laws, including the securities laws of the State of Delaware. No opinion is given herein as to the choice of law or internal substantive rules of law which any tribunal may apply to such transaction. In addition, to the extent that the Declaration or the By-Laws refer to, incorporate or require compliance with, the Investment Company Act of 1940, as amended, or any other law or regulation applicable to the Trust, except for the Delaware Statutory Trust Act, as aforesaid, we have assumed compliance by the Trust with such Act and such other laws and regulations.

     We understand that all of the foregoing assumptions and limitations are acceptable to you.

     Based upon and subject to the foregoing and to the further assumptions and limitations hereinafter set forth, please be advised that it is our opinion that the Shares, when issued and sold in accordance with the Declaration and the Resolutions and for the consideration described in the Agreement and Plan of Reorganization, will be validly issued, fully paid and nonassessable.

     This opinion is given as of the date hereof and we assume no obligation to update this opinion to reflect any changes in law or any other facts or circumstances which may hereafter come to our attention. We hereby consent to the filing of this opinion as an exhibit to the Registration Statement.

Transamerica Funds
September 1, 2009
Page 3

Very truly yours,

/s/ Bingham McCutchen LLP

BINGHAM McCUTCHEN LLP

September 1, 2009

Transamerica Funds
570 Carillon Parkway
St. Petersburg, Florida 33716

Ladies and Gentlemen:

     We have acted as counsel to Transamerica Funds, a Delaware statutory trust (the “Trust”), in its individual capacity, and on behalf of its series, Transamerica Equity (the “Acquiring Fund”), in connection with the Trust’s Registration Statement on Form N-14 to be filed with the Securities and Exchange Commission on or about September 1, 2009 (the “Registration Statement”), with respect to (1) the Acquiring Fund’s Class P shares of beneficial interest to be issued in exchange for the assets of Transamerica Premier Equity Fund, a series of Transamerica Investors, Inc., a Maryland corporation, and (2) the Acquiring Fund’s Class I shares (together with the Class P shares, the “Shares”) of beneficial interest to be issued in exchange for the assets of Transamerica Premier Institutional Equity Fund, a series of Transamerica Investors, Inc., as described in the Registration Statement (the “Merger”). You have requested that we deliver this opinion to you in connection with the Trust’s filing of the Registration Statement.

     In connection with the furnishing of this opinion, we have examined the following documents:

     (a) A certificate of the Secretary of State of the State of Delaware, dated as of a recent date, as to the existence of the Trust;

     (b) A copy, certified by the Secretary of State of the State of Delaware, dated as of a recent date, of the Trust’s Certificate of Trust, dated February 25, 2005, filed with the Secretary of State of the State of Delaware (the “Certificate of Trust”);

     (c) A certificate executed by the Secretary of the Trust, certifying as to, and attaching copies of, the Trust’s Amended and Restated Declaration of Trust (the “Declaration”), the Trust’s Amended and Restated By-Laws (the “By-Laws”), and the resolutions adopted by the Trustees of the Trust at a meeting held on July 21, 2009, authorizing the Merger and the issuance of the Shares on behalf of the Acquiring Fund (the “Resolutions”);

     (d) A printer’s proof, received on September 1, 2009, of the Registration Statement; and

     (e) A copy of the form of the Agreement and Plan of Reorganization to be entered into by the Trust, on behalf of the Acquiring Fund (the “Agreement and Plan of Reorganization”).

     In such examination, we have assumed the genuineness of all signatures, the conformity to the originals of all of the documents reviewed by us as copies, including conformed copies, the authenticity and completeness of all original documents reviewed by

Transamerica Funds
September 1, 2009
Page 2

us in original or copy form and the legal competence of each individual executing any document. We have assumed that the Registration Statement as filed with the Securities and Exchange Commission will be in substantially the form of the printer’s proof referred to in paragraph (d) above, and that the Agreement and Plan of Reorganization will be duly completed, executed and delivered by the parties thereto in substantially the form of the copy referred to in paragraph (e) above. We have also assumed for the purposes of this opinion that the Declaration, the Certificate of Trust, the Resolutions and the Agreement and Plan of Reorganization will not have been amended, modified or withdrawn and will be in full force and effect on the date of issuance of the Shares.

     This opinion is based entirely on our review of the documents listed above and such other documents as we have deemed necessary or appropriate for the purposes of this opinion and such investigation of law as we have deemed necessary or appropriate. We have made no other review or investigation of any kind whatsoever, and we have assumed, without independent inquiry, the accuracy of the information set forth in such documents.

     This opinion is limited solely to the Delaware Statutory Trust Act (which for this purpose includes applicable provisions of the Delaware Constitution and reported judicial decisions interpreting these laws) to the extent that the same may apply to or govern the transactions referred to herein, and we express no opinion with respect to the laws of any other jurisdiction or to any other laws of the State of Delaware. Further, we express no opinion as to any state or federal securities laws, including the securities laws of the State of Delaware. No opinion is given herein as to the choice of law or internal substantive rules of law which any tribunal may apply to such transaction. In addition, to the extent that the Declaration or the By-Laws refer to, incorporate or require compliance with, the Investment Company Act of 1940, as amended, or any other law or regulation applicable to the Trust, except for the Delaware Statutory Trust Act, as aforesaid, we have assumed compliance by the Trust with such Act and such other laws and regulations.

     We understand that all of the foregoing assumptions and limitations are acceptable to you.

     Based upon and subject to the foregoing and to the further assumptions and limitations hereinafter set forth, please be advised that it is our opinion that the Shares, when issued and sold in accordance with the Declaration and the Resolutions and for the consideration described in the Agreement and Plan of Reorganization, will be validly issued, fully paid and nonassessable.

     This opinion is given as of the date hereof and we assume no obligation to update this opinion to reflect any changes in law or any other facts or circumstances which may hereafter come to our attention. We hereby consent to the filing of this opinion as an exhibit to the Registration Statement.

Very truly yours,

/s/ Bingham McCutchen LLP

BINGHAM McCUTCHEN LLP

September 1, 2009

Transamerica Funds
570 Carillon Parkway
St. Petersburg, Florida 33716

Ladies and Gentlemen:

     We have acted as counsel to Transamerica Funds, a Delaware statutory trust (the “Trust”), in its individual capacity, and on behalf of its series, Transamerica Legg Mason Partners All Cap (the “Acquiring Fund”), in connection with the Trust’s Registration Statement on Form N-14 to be filed with the Securities and Exchange Commission on or about September 1, 2009 (the “Registration Statement”), with respect to the Acquiring Fund’s Class P shares (the “Shares”) of beneficial interest to be issued in exchange for the assets of Transamerica Premier Focus Fund, a series of Transamerica Investors, Inc., a Maryland corporation, as described in the Registration Statement (the “Merger”). You have requested that we deliver this opinion to you in connection with the Trust’s filing of the Registration Statement.

     In connection with the furnishing of this opinion, we have examined the following documents:

     (a) A certificate of the Secretary of State of the State of Delaware, dated as of a recent date, as to the existence of the Trust;

     (b) A copy, certified by the Secretary of State of the State of Delaware, dated as of a recent date, of the Trust’s Certificate of Trust, dated February 25, 2005, filed with the Secretary of State of the State of Delaware (the “Certificate of Trust”);

     (c) A certificate executed by the Secretary of the Trust, certifying as to, and attaching copies of, the Trust’s Amended and Restated Declaration of Trust (the “Declaration”), the Trust’s Amended and Restated By-Laws (the “By-Laws”), and the resolutions adopted by the Trustees of the Trust at a meeting held on July 21, 2009, authorizing the Merger and the issuance of the Shares on behalf of the Acquiring Fund (the “Resolutions”);

     (d) A printer’s proof, received on September 1, 2009, of the Registration Statement; and

     (e) A copy of the form of the Agreement and Plan of Reorganization to be entered into by the Trust, on behalf of the Acquiring Fund (the “Agreement and Plan of Reorganization”).

     In such examination, we have assumed the genuineness of all signatures, the conformity to the originals of all of the documents reviewed by us as copies, including conformed copies, the authenticity and completeness of all original documents reviewed by us in original or copy form and the legal competence of each individual executing any document. We have assumed that the Registration Statement as filed with the Securities

Transamerica Funds
September 1, 2009
Page 2

and Exchange Commission will be in substantially the form of the printer’s proof referred to in paragraph (d) above, and that the Agreement and Plan of Reorganization will be duly completed, executed and delivered by the parties thereto in substantially the form of the copy referred to in paragraph (e) above. We have also assumed for the purposes of this opinion that the Declaration, the Certificate of Trust, the Resolutions and the Agreement and Plan of Reorganization will not have been amended, modified or withdrawn and will be in full force and effect on the date of issuance of the Shares.

     This opinion is based entirely on our review of the documents listed above and such other documents as we have deemed necessary or appropriate for the purposes of this opinion and such investigation of law as we have deemed necessary or appropriate. We have made no other review or investigation of any kind whatsoever, and we have assumed, without independent inquiry, the accuracy of the information set forth in such documents.

     This opinion is limited solely to the Delaware Statutory Trust Act (which for this purpose includes applicable provisions of the Delaware Constitution and reported judicial decisions interpreting these laws) to the extent that the same may apply to or govern the transactions referred to herein, and we express no opinion with respect to the laws of any other jurisdiction or to any other laws of the State of Delaware. Further, we express no opinion as to any state or federal securities laws, including the securities laws of the State of Delaware. No opinion is given herein as to the choice of law or internal substantive rules of law which any tribunal may apply to such transaction. In addition, to the extent that the Declaration or the By-Laws refer to, incorporate or require compliance with, the Investment Company Act of 1940, as amended, or any other law or regulation applicable to the Trust, except for the Delaware Statutory Trust Act, as aforesaid, we have assumed compliance by the Trust with such Act and such other laws and regulations.

     We understand that all of the foregoing assumptions and limitations are acceptable to you.

     Based upon and subject to the foregoing and to the further assumptions and limitations hereinafter set forth, please be advised that it is our opinion that the Shares, when issued and sold in accordance with the Declaration and the Resolutions and for the consideration described in the Agreement and Plan of Reorganization, will be validly issued, fully paid and nonassessable.

     This opinion is given as of the date hereof and we assume no obligation to update this opinion to reflect any changes in law or any other facts or circumstances which may hereafter come to our attention. We hereby consent to the filing of this opinion as an exhibit to the Registration Statement.

Very truly yours,

/s/ Bingham McCutchen LLP

BINGHAM McCUTCHEN LLP

September 1, 2009

Transamerica Funds
570 Carillon Parkway
St. Petersburg, Florida 33716

Ladies and Gentlemen:

     We have acted as counsel to Transamerica Funds, a Delaware statutory trust (the “Trust”), in its individual capacity, and on behalf of its series, Transamerica Growth Opportunities (the “Acquiring Fund”), in connection with the Trust’s Registration Statement on Form N-14 to be filed with the Securities and Exchange Commission on or about September 1, 2009 (the “Registration Statement”), with respect to the Acquiring Fund’s Class P shares (the “Shares”) of beneficial interest to be issued in exchange for the assets of Transamerica Premier Growth Opportunities Fund, a series of Transamerica Investors, Inc., a Maryland corporation, as described in the Registration Statement (the “Merger”). You have requested that we deliver this opinion to you in connection with the Trust’s filing of the Registration Statement.

     In connection with the furnishing of this opinion, we have examined the following documents:

     (a) A certificate of the Secretary of State of the State of Delaware, dated as of a recent date, as to the existence of the Trust;

     (b) A copy, certified by the Secretary of State of the State of Delaware, dated as of a recent date, of the Trust’s Certificate of Trust, dated February 25, 2005, filed with the Secretary of State of the State of Delaware (the “Certificate of Trust”);

     (c) A certificate executed by the Secretary of the Trust, certifying as to, and attaching copies of, the Trust’s Amended and Restated Declaration of Trust (the “Declaration”), the Trust’s Amended and Restated By-Laws (the “By-Laws”), and the resolutions adopted by the Trustees of the Trust at a meeting held on July 21, 2009, authorizing the Merger and the issuance of the Shares on behalf of the Acquiring Fund (the “Resolutions”);

     (d) A printer’s proof, received on September 1, 2009, of the Registration Statement; and

     (e) A copy of the form of the Agreement and Plan of Reorganization to be entered into by the Trust, on behalf of the Acquiring Fund (the “Agreement and Plan of Reorganization”).

     In such examination, we have assumed the genuineness of all signatures, the conformity to the originals of all of the documents reviewed by us as copies, including conformed copies, the authenticity and completeness of all original documents reviewed by us in original or copy form and the legal competence of each individual executing any document. We have assumed that the Registration Statement as filed with the Securities

Transamerica Funds
September 1, 2009
Page 2

and Exchange Commission will be in substantially the form of the printer’s proof referred to in paragraph (d) above, and that the Agreement and Plan of Reorganization will be duly completed, executed and delivered by the parties thereto in substantially the form of the copy referred to in paragraph (e) above. We have also assumed for the purposes of this opinion that the Declaration, the Certificate of Trust, the Resolutions and the Agreement and Plan of Reorganization will not have been amended, modified or withdrawn and will be in full force and effect on the date of issuance of the Shares.

     This opinion is based entirely on our review of the documents listed above and such other documents as we have deemed necessary or appropriate for the purposes of this opinion and such investigation of law as we have deemed necessary or appropriate. We have made no other review or investigation of any kind whatsoever, and we have assumed, without independent inquiry, the accuracy of the information set forth in such documents.

     This opinion is limited solely to the Delaware Statutory Trust Act (which for this purpose includes applicable provisions of the Delaware Constitution and reported judicial decisions interpreting these laws) to the extent that the same may apply to or govern the transactions referred to herein, and we express no opinion with respect to the laws of any other jurisdiction or to any other laws of the State of Delaware. Further, we express no opinion as to any state or federal securities laws, including the securities laws of the State of Delaware. No opinion is given herein as to the choice of law or internal substantive rules of law which any tribunal may apply to such transaction. In addition, to the extent that the Declaration or the By-Laws refer to, incorporate or require compliance with, the Investment Company Act of 1940, as amended, or any other law or regulation applicable to the Trust, except for the Delaware Statutory Trust Act, as aforesaid, we have assumed compliance by the Trust with such Act and such other laws and regulations.

     We understand that all of the foregoing assumptions and limitations are acceptable to you.

     Based upon and subject to the foregoing and to the further assumptions and limitations hereinafter set forth, please be advised that it is our opinion that the Shares, when issued and sold in accordance with the Declaration and the Resolutions and for the consideration described in the Agreement and Plan of Reorganization, will be validly issued, fully paid and nonassessable.

     This opinion is given as of the date hereof and we assume no obligation to update this opinion to reflect any changes in law or any other facts or circumstances which may hereafter come to our attention. We hereby consent to the filing of this opinion as an exhibit to the Registration Statement.

Very truly yours,

/s/ Bingham McCutchen LLP

BINGHAM McCUTCHEN LLP

September 1, 2009

Transamerica Funds
570 Carillon Parkway
St. Petersburg, Florida 33716

Ladies and Gentlemen:

     We have acted as counsel to Transamerica Funds, a Delaware statutory trust (the “Trust”), in its individual capacity, and on behalf of its series, Transamerica Flexible Income (the “Acquiring Fund”), in connection with the Trust’s Registration Statement on Form N-14 to be filed with the Securities and Exchange Commission on or about September 1, 2009 (the “Registration Statement”), with respect to the Acquiring Fund’s Class A shares, Class B shares, Class C shares and Class I shares (the “Shares”) of beneficial interest to be issued in exchange for the assets of Transamerica Convertible Securities, a series of the Trust, as described in the Registration Statement (the “Merger”). You have requested that we deliver this opinion to you in connection with the Trust’s filing of the Registration Statement.

     In connection with the furnishing of this opinion, we have examined the following documents:

     (a) A certificate of the Secretary of State of the State of Delaware, dated as of a recent date, as to the existence of the Trust;

     (b) A copy, certified by the Secretary of State of the State of Delaware, dated as of a recent date, of the Trust’s Certificate of Trust, dated February 25, 2005, filed with the Secretary of State of the State of Delaware (the “Certificate of Trust”);

     (c) A certificate executed by the Secretary of the Trust, certifying as to, and attaching copies of, the Trust’s Amended and Restated Declaration of Trust (the “Declaration”), the Trust’s Amended and Restated By-Laws (the “By-Laws”), and the resolutions adopted by the Trustees of the Trust at a meeting held on July 21, 2009, authorizing the Merger and the issuance of the Shares on behalf of the Acquiring Fund (the “Resolutions”);

     (d) A printer’s proof, received on September 1, 2009, of the Registration Statement; and

     (e) A copy of the form of the Agreement and Plan of Reorganization to be entered into by the Trust, on behalf of the Acquiring Fund (the “Agreement and Plan of Reorganization”).

     In such examination, we have assumed the genuineness of all signatures, the conformity to the originals of all of the documents reviewed by us as copies, including conformed copies, the authenticity and completeness of all original documents reviewed by us in original or copy form and the legal competence of each individual executing any document. We have assumed that the Registration Statement as filed with the Securities

Transamerica Funds
September 1, 2009
Page 2

and Exchange Commission will be in substantially the form of the printer’s proof referred to in paragraph (d) above, and that the Agreement and Plan of Reorganization will be duly completed, executed and delivered by the parties thereto in substantially the form of the copy referred to in paragraph (e) above. We have also assumed for the purposes of this opinion that the Declaration, the Certificate of Trust, the Resolutions and the Agreement and Plan of Reorganization will not have been amended, modified or withdrawn and will be in full force and effect on the date of issuance of the Shares.

     This opinion is based entirely on our review of the documents listed above and such other documents as we have deemed necessary or appropriate for the purposes of this opinion and such investigation of law as we have deemed necessary or appropriate. We have made no other review or investigation of any kind whatsoever, and we have assumed, without independent inquiry, the accuracy of the information set forth in such documents.

     This opinion is limited solely to the Delaware Statutory Trust Act (which for this purpose includes applicable provisions of the Delaware Constitution and reported judicial decisions interpreting these laws) to the extent that the same may apply to or govern the transactions referred to herein, and we express no opinion with respect to the laws of any other jurisdiction or to any other laws of the State of Delaware. Further, we express no opinion as to any state or federal securities laws, including the securities laws of the State of Delaware. No opinion is given herein as to the choice of law or internal substantive rules of law which any tribunal may apply to such transaction. In addition, to the extent that the Declaration or the By-Laws refer to, incorporate or require compliance with, the Investment Company Act of 1940, as amended, or any other law or regulation applicable to the Trust, except for the Delaware Statutory Trust Act, as aforesaid, we have assumed compliance by the Trust with such Act and such other laws and regulations.

     We understand that all of the foregoing assumptions and limitations are acceptable to you.

     Based upon and subject to the foregoing and to the further assumptions and limitations hereinafter set forth, please be advised that it is our opinion that the Shares, when issued and sold in accordance with the Declaration and the Resolutions and for the consideration described in the Agreement and Plan of Reorganization, will be validly issued, fully paid and nonassessable.

     This opinion is given as of the date hereof and we assume no obligation to update this opinion to reflect any changes in law or any other facts or circumstances which may hereafter come to our attention. We hereby consent to the filing of this opinion as an exhibit to the Registration Statement.

Very truly yours,

/s/ Bingham McCutchen LLP

BINGHAM McCUTCHEN LLP

EX-99.12

Exhibit (12)

FORM OF OPINION AND CONSENT

[Date]

[Name of Acquiring Entity]
[Address]
[City, State Zip]

[Name of Acquired Entity]
[Address]
[City, State Zip]

Ladies and Gentlemen:

This opinion is furnished to you pursuant to paragraph [8.5] of the Agreement and Plan of Reorganization (the “Agreement”), dated as of [Date], by and among [Name of Acquiring Entity], a [Massachusetts business trust] / [Maryland corporation] / [Delaware statutory trust] (the “Acquiring Entity”), on behalf of [Name of Acquiring Fund], a series thereof (the “Acquiring Fund”), and [Name of Acquired Entity], a [Massachusetts business trust] / [Maryland corporation] / [Delaware statutory trust] (the “Acquired Entity”), on behalf of [Name of Acquired Fund], a series thereof (the “Acquired Fund”). All capitalized terms not otherwise defined herein have the meanings ascribed to them in the Agreement. The Agreement contemplates the acquisition of all of the Assets of the Acquired Fund by the Acquiring Fund in exchange for (a) the assumption by the Acquiring Entity, on behalf of the Acquiring Fund, of the Liabilities of the Acquired Fund and (b) the issuance and delivery by the Acquiring Entity, on behalf of the Acquiring Fund, to the Acquired Fund, for distribution, in accordance with paragraph [1.3] of the Agreement, pro rata to the Acquired Fund Shareholders in exchange for their Acquired Fund Shares and in complete liquidation of the Acquired Fund, of a number of Acquiring Fund Shares having an aggregate net asset value equal to the value of the Assets, less the amount of the Liabilities, of the Acquired Fund so transferred to the Acquiring Fund (the “Transaction”).

In connection with this opinion we have examined and relied upon the originals or copies, certified or otherwise identified to us to our satisfaction, of the Agreement, the Combined Proxy Statement and Prospectus on Form N-14 filed with the Securities and Exchange Commission on or about [Date] with respect to the Transaction, and related documents (collectively, the “Transaction Documents”). In that examination, we have assumed the genuineness of all signatures, the capacity and authority of each party executing a document to so execute the document, the authenticity and completeness of all documents purporting to be originals (whether reviewed by us in original or copy form) and the conformity to the originals of all documents purporting to be copies (including electronic copies). We have also assumed that each agreement and other instrument reviewed by us is valid and binding on the party or parties thereto and is

[Name of Acquiring Entity]
[Name of Acquired Entity]
[Date]
Page Two

enforceable in accordance with its terms, and that there are no contracts, agreements, arrangements, or understandings, either written or oral, that are inconsistent with or that would materially alter the terms of the Agreement or the other Transaction Documents.

As to certain factual matters, we have relied with your consent upon, and our opinion is limited by, the representations of the various parties set forth in the Transaction Documents and in certificates of the Acquiring Entity, on behalf of the Acquiring Fund, and the Acquired Entity, on behalf of the Acquired Fund, each dated as of the date hereof (the “Certificates”). Our opinion assumes (i) that all representations set forth in the Transaction Documents and in the Certificates will be true and correct in all material respects as of the date of the Transaction, and (ii) that the Agreement is implemented in accordance with its terms and consistent with the representations set forth in the Transaction Documents and Certificates. Our opinion is limited solely to the provisions of the Internal Revenue Code of 1986, as amended and as presently in effect (the “Code”), existing case law, existing permanent and temporary treasury regulations promulgated under the Code (“Treasury Regulations”), and existing published revenue rulings and procedures of the Internal Revenue Service that are in effect as of the date hereof, all of which are subject to change and new interpretation, both prospectively and retroactively. We assume no obligation to update our opinion to reflect other facts or any changes in law or in the interpretation thereof that may hereafter occur.

On the basis of and subject to the foregoing, we are of the opinion that, for United States federal income tax purposes:

1.	The transfer to the Acquiring Fund of all of the Assets of the Acquired Fund in exchange solely for Acquiring Fund Shares and the assumption by the Acquiring Entity, on behalf of the Acquiring Fund, of all of the Liabilities of the Acquired Fund, followed by the distribution of such Acquiring Fund Shares to the Acquired Fund Shareholders in complete liquidation of the Acquired Fund, will constitute a “reorganization” within the meaning of Section 368(a) of the Code, and the Acquiring Fund and the Acquired Fund will each be a “party to a reorganization” within the meaning of Section 368(b) of the Code.
2.	No gain or loss will be recognized by the Acquiring Fund upon receipt of the Assets solely in exchange for the Acquiring Fund Shares and the assumption by the Acquiring Entity, on behalf of the Acquiring Fund, of the Liabilities of the Acquired Fund.
3.	The basis in the hands of the Acquiring Fund of the Assets of the Acquired Fund transferred in the Transaction will be the same as the basis of such Assets in the hands of the Acquired Fund immediately prior to the transfer thereof, increased by the amount of gain (or decreased by the amount of loss), if any, recognized by the Acquired Fund upon the transfer.

[Name of Acquiring Entity]
[Name of Acquired Entity]
[Date]
Page Three

4.	The holding period of each Asset in the hands of the Acquiring Fund, other than Assets with respect to which gain or loss is required to be recognized in the Transaction, will include the period during which the Asset was held by the Acquired Fund (except where investment activities of the Acquiring Fund have the effect of reducing or eliminating the holding period with respect to an Asset).
5.	No gain or loss will be recognized by the Acquired Fund upon the transfer of its Assets to the Acquiring Fund solely in exchange for the Acquiring Fund Shares and the assumption by the Acquiring Entity, on behalf of the Acquiring Fund, of the Liabilities of the Acquired Fund, or upon the distribution of the Acquiring Fund Shares by the Acquired Fund to its shareholders in complete liquidation, except for (i) any gain or loss that may be recognized on the transfer of “section 1256 contracts” as defined in Section 1256(b) of the Code, (ii) any gain that may be recognized on the transfer of stock in a “passive foreign investment company” as defined in Section 1297(a) of the Code, and (iii) any other gain or loss that may be required to be recognized (a) as a result of the closing of the Acquired Fund’s taxable year or (b) upon the transfer of an Asset regardless of whether the transfer would otherwise be a non-taxable transaction under the Code.
6.	No gain or loss will be recognized by the Acquired Fund Shareholders upon the exchange of all of their Acquired Fund Shares solely for Acquiring Fund Shares as part of the Transaction.
7.	The aggregate basis of the Acquiring Fund Shares that each Acquired Fund Shareholder receives in the Transaction will be the same as the aggregate basis of his or her Acquired Fund Shares exchanged therefor.
8.	Each Acquired Fund Shareholder’s holding period for his or her Acquiring Fund Shares received in the Transaction will be determined by including the period for which he or she held the Acquired Fund Shares exchanged therefor, provided that he or she held such Acquired Fund Shares as capital assets on the date of the exchange.

[Name of Acquiring Entity]
[Name of Acquired Entity]
[Date]
Page Four

This opinion is being delivered solely to you for your use in connection with the referenced Transaction, and may not be relied upon by any other person or used for any other purpose.

Very truly yours,

[                                   ]

BINGHAM McCUTCHEN LLP

EX-99.13.C

Exhibit (13)(c)

FORM OF

AMENDED AND RESTATED EXPENSE LIMITATION AGREEMENT

     EXPENSE LIMITATION AGREEMENT, effective as of March 1, 2005, and amended and restated as of October [   ], 2009, by and between Transamerica Asset Management, Inc. (formerly, Transamerica Fund Advisors, Inc.)(the “Investment Manager”), and Transamerica Funds (formerly, Transamerica IDEX Mutual Funds)(the “Company”), on behalf of each series of the Company set forth in Schedule A (each a “Fund,” and collectively, the “Funds”).

     WHEREAS, the Company is a Delaware statutory trust, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management company of the series type, and each Fund is a series of the Company; and

     WHEREAS, the Company and the Investment Manager have entered into investment advisory agreements on behalf of the Funds (“Management Agreements”), pursuant to which the Investment Manager provides investment management services to each Fund for compensation based on the value of the average daily net assets of each such Fund; and

     WHEREAS, the Company and the Investment Manager have determined that it is appropriate and in the best interests of each Fund and its shareholders to maintain the expenses of each Fund at a level below the level to which each such Fund may normally be subject; and

     WHEREAS, the Company and the Investment Manager wish to structure this Expense Limitation Agreement in a manner consistent with the requirements of Revenue Procedure 96-47, 1996-2 CB 338, and Revenue Procedure 99-40, I.R.B. 1999-46, 565 so as to avoid any possibility that any Fund is deemed to have paid a preferential dividend, and in a manner consistent with the SEC’s interpretation of analogous requirements in Rule 18f-3(a) under the 1940 Act;

     NOW, THEREFORE, the parties hereto agree as follows:

4. Expense Limitation.

     1.1. Applicable Expense Limit. The Investment Manager agrees to reduce the investment management fees payable to it pursuant to the Management Agreements and make payments to the Funds to the extent necessary to limit the ordinary operating expenses incurred by each Fund in any fiscal year, excluding interest, taxes, 12b-1 fees, brokerage commissions, extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of such Fund’s business (“Fund Operating Expenses”) to the Operating Expense Limit, as defined in Section 1.2 below. With respect to Class P shares of a Fund, if any, “Fund Operating Expenses” shall mean the ordinary operating expenses incurred by the Fund in any fiscal year, including but not limited to investment management fees of the Investment Manager, but excluding interest, taxes, brokerage commissions, extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of such Fund’s business. For each Fund, any amount of Fund Operating Expenses above the Operating Expense Limit (such excess amount, the “Excess Amount”) shall be the liability of the Investment Manager.

     1.2. Operating Expense Limit. The “Operating Expense Limit” in any fiscal year with respect to each Fund shall be the amount specified in Schedule A based on a percentage of the average daily net assets of each Fund.

     1.3. Duration of Operating Expense Limit. The Operating Expense Limit with respect to each Fund shall remain in effect until the date specified for that Fund on Schedule A. The Investment Manager may extend, but may not during the term of this Agreement shorten, the duration of the Operating Expense Limit for any Fund by delivering a revised Schedule A to the Company reflecting such extension. Such an extension must continue at the same (or lower) Operating Expense Limit amount specified on Schedule A.

     1.4. Method of Computation. This Expense Limitation Agreement shall in all cases be interpreted in a manner consistent with the requirements of Revenue Procedure 96-47, 1996-2 CB 338, and Revenue Procedure 99-40, I.R.B. 1999-46, 565 so as to avoid any possibility that any Fund is deemed to have paid a preferential dividend. In the event of any conflict between any term of this Expense Limitation Agreement and the previous sentence, the previous sentence shall control.

     Advisory fees and other expenses related to the management of the Company’s assets. Each Class of each Fund shall be allocated and shall pay an investment management fee and other fees and expenses related to the management of the Fund’s assets (including custodial fees and tax return preparation fees) on the basis of the net asset value of that Class in relation to the net asset value of the Fund. The benefit of a waiver or reimbursement of

any advisory fee and any other fees and expenses related to the management of the Fund’s assets (including custodial fees and tax return preparation fees) shall be allocated to all shares by net asset value, regardless of Class.

     Other fees and expenses. Each Class of each Fund may be allocated and may pay a different share of other fees and expenses, not including advisory or custodial fees or other fees and expenses related to the management of the Fund’s assets, if these expenses are actually incurred in a different amount by that Class, or if the Class receives services of a different kind or to a different degree than other Classes.

     Subject to the foregoing, to determine the Investment Manager’s liability with respect to the Excess Amount, each day the Fund Operating Expenses for each Fund generally will be annualized as of that day. If the annualized Fund Operating Expenses of a Fund as of that day exceed the Operating Expense Limit of such Fund, the management fees payable to the Investment Manager that are accrued that day generally will be waived in an amount sufficient to reduce the Excess Amount so that the annualized Fund Operating Expenses as of that day equal the Operating Expense Limit. If such waiver of management fees is not sufficient to equal the Operating Expense Limit, the Fund will accrue a receivable from the Investment Manager in an amount sufficient so that the annualized Fund Operating Expenses equal to the Operating Expense Limit.

     In case a Fund needs to accrue such receivables from the Investment Manager during any month, the Fund will inform the Investment Manager about the Excess Amount owed to the Fund for that month and the Investment Manager will remit to the Fund promptly after the end of the month an amount that, together with already waived management fees, is sufficient to pay that month’s Excess Amount.

     1.5. Periodic Adjustments. As necessary, daily, monthly and annual adjustments, accruals or payments will be made by the appropriate party to ensure that the amount of the management fees waived and payments remitted to a Fund by the Investment Manager equal the Excess Amount for any Fund fiscal year during the duration of this Agreement.

2. Reimbursement of Fee Waivers and Expense Reimbursements.

     If on any day or month, the estimated annualized Fund Operating Expenses of the Funds listed in Schedule B as of that day or month are less than the Operating Expense Limit as of that day or month, the Investment Manager shall be entitled to reimbursement by such Fund of the investment management fees waived or reduced and other payments remitted by the Investment Manager to such Fund pursuant to Section I hereof during any of the previous thirty-six (36) months beginning with the effective date of this Agreement (the “Reimbursement Amount”), to the extent that the annualized Fund Operating Expenses plus the amount so reimbursed equals, as of such day or month, the Operating Expense Limit provided in Schedule A, provided that such amount paid to the Investment Manager will in no event exceed the total Reimbursement Amount and will not include any amounts previously reimbursed. The Reimbursement Amount may not include any additional charge or fees, such as interest accruable on the Reimbursement Amount. Amounts so reimbursed shall be allocated to the oldest Reimbursement Amount during the previous thirty-six (36) months until fully reimbursed, and thereafter, to the next oldest Reimbursement Amount, and so forth. Periodic adjustments to the Reimbursement Amount and related reimbursement may be made by the Fund, as necessary to ensure that the amount of Fund Operating Expenses during any Fund fiscal year never exceed the Operating Expense Limit during that fiscal year.

3. Term and Termination of Agreement.

     Unless the Investment Manager has extended the duration of the Operating Expense Limit with respect to a Fund pursuant to Section 1.3 of this Agreement, this Agreement shall automatically renew effective March 1 of every year for one-year terms until such time as the Investment Manager provides written notice of non-renewal past the then-current term. In addition, this Agreement shall terminate with respect to a Fund upon termination of the Investment Management Agreement of that Fund.

4. Miscellaneous.

     4.1. Multiple Class Plan. In case a Fund has multiple classes of shares, any amount of fees or expenses waived, paid or reimbursed pursuant to the terms of this Agreement shall be allocated among the classes of shares of the Fund in accordance with the terms of the Fund’s multiple class plan pursuant to Rule 18f-3 under the 1940 Act.

     4.2. Captions. The captions in this Agreement are included for convenience of reference only and in no other way define or delineate any of the provisions hereof or otherwise affect their construction or effect.

     4.3. Interpretation. Nothing herein contained shall be deemed to require the Company or the Funds to take any action contrary to the Company’s Declaration of Trust or By-Laws, or any applicable statutory or regulatory requirement to which it is subject or by which it is bound, or to relieve or deprive the Company’s Board of Trustees of its responsibility for and control of the conduct of the affairs of the Company or the Funds.

     4.4. Definitions. Any question of interpretation of any term or provision of this Agreement, including but not limited to the investment management fee, the computations of net asset values, and the allocation of expenses, having a counterpart in or otherwise derived from the terms and provisions of the Management Agreement or the 1940 Act, shall have the same meaning as and be resolved by reference to such Management Agreement or the 1940 Act.

5. Voluntary Expense Limitation and Reimbursement.

     5.1. Notwithstanding any other provision of this Agreement, the Investment Manager (or its affiliates) may voluntarily waive fees and/or reimburse expenses of one or more classes of Transamerica Money Market (the “Money Market Fund”) to such level(s) as the Company’s officers may reasonably determine. Any such waiver or expense reimbursement may be discontinued by the Investment Manager at any time. The Investment Manager shall be entitled to recapture any amounts so waived or reimbursed upon the Money Market Fund attaining such yield as the Company’s officers reasonably determine.

     5.2. Once the Money Market Fund has maintained a daily positive yield for a reasonable amount of time, as determined by the Investment Manager, the Investment Manager shall be entitled to reimbursement by the Money Market Fund of the fees waived and/or expenses reimbursed by the Investment Manager or any of its affiliates to the Money Market Fund pursuant to Section 5.1 of this Agreement during any of the previous thirty-six (36) months beginning July 1, 2009. Any such reimbursement shall not result in the Money Market Fund’s effective daily yield to be negative.

     This Agreement supersedes all prior written agreements between the parties relating to the subject matter hereof, and all such prior agreements are deemed terminated upon the effectiveness of this Agreement.

     The parties have caused this Agreement to be signed by their respective officers thereunto duly authorized as of the day and year first above written.

TRANSAMERICA ASSET MANAGEMENT, INC.
By:
	Dennis P. Gallagher
	Senior Vice President, General Counsel and Secretary
TRANSAMERICA FUNDS
By:
	Christopher A. Staples
	Vice President and Chief Investment Officer

SCHEDULE A

TRANSAMERICA FUNDS

OPERATING EXPENSE LIMITS

     This Agreement relates to the following Funds of the Company:

	MAXIMUM
	OPERATING
	EXPENSE LIMIT
	EFFECTIVE
FUND NAME	THROUGH	EXPENSE LIMIT
Transamerica AllianceBernstein International Value	March 1, 2010		1.13	%
Transamerica American Century Large Company Value	March 1, 2010	None
Transamerica Asset Allocation — Conservative Portfolio	March 1, 2010		0.45	%
Transamerica Asset Allocation — Growth Portfolio	March 1, 2010		0.45	%
Transamerica Asset Allocation — Moderate Growth Portfolio	March 1, 2010		0.45	%
Transamerica Asset Allocation — Moderate Portfolio	March 1, 2010		0.45	%
Transamerica Balanced	March 1, 2011		1.45	%*
Transamerica BlackRock Global Allocation	March 1, 2010		1.00	%
Transamerica BlackRock Large Cap Value	March 1, 2010		1.00	%
Transamerica BlackRock Natural Resources	March 1, 2010		1.00	%
Transamerica BNY Mellon Market Neutral Strategy	March 1, 2010		1.65	%**
Transamerica Clarion Global Real Estate Securities	March 1, 2010	None
Transamerica Convertible Securities	March 1, 2010		1.35	%
Transamerica Diversified Equity	March 1, 2011		1.17	%*
Transamerica Equity	March 1, 2011		1.17	%*
Transamerica Evergreen Health Care	March 1, 2010	None
Transamerica Evergreen International Small Cap	March 1, 2010		1.32	%
Transamerica Federated Market Opportunity	March 1, 2010		1.05	%
Transamerica Flexible Income	March 1, 2011		1.50	%
Transamerica Growth Opportunities	March 1, 2011		1.40	%*
Transamerica High Yield Bond	March 1, 2010		1.24	%*
Transamerica Jennison Growth	March 1, 2010	None
Transamerica JPMorgan Core Bond	June 30, 2010		0.70	%
Transamerica JPMorgan International Bond	March 1, 2010		0.75	%
Transamerica JPMorgan Mid Cap Value	March 1, 2010		1.05	%
[Transamerica Legg Mason Partners All Cap]	March 1, 2011		1.20	%*
Transamerica Loomis Sayles Bond	March 1, 2010		0.88	%
Transamerica Marsico Growth	March 1, 2010	None
Transamerica Marsico International Growth	March 1, 2010		1.31	%
Transamerica MFS International Equity	March 1, 2010	None
Transamerica Money Market	March 1, 2011		0.48	%
Transamerica Multi-Manager Alternative Strategies Portfolio	March 1, 2010		0.55	%
Transamerica Multi-Manager International Portfolio	March 1, 2010		0.45	%
Transamerica Neuberger Berman International	March 1, 2010		1.25	%
Transamerica Oppenheimer Developing Markets	March 1, 2010		1.45	%

	MAXIMUM
	OPERATING
	EXPENSE LIMIT
	EFFECTIVE
FUND NAME	THROUGH	EXPENSE LIMIT
Transamerica Oppenheimer Small- & Mid-Cap Value	March 1, 2010		1.15	%
Transamerica PIMCO Real Return TIPS	March 1, 2010	None
Transamerica PIMCO Total Return	March 1, 2010	None
Transamerica Schroders International Small Cap	March 1, 2010		1.27	%
Transamerica Science & Technology	March 1, 2010		1.18	%
Transamerica Short-Term Bond	March 1, 2010		0.85	%†
Transamerica Small/Mid Cap Value	March 1, 2010		1.40	%
Transamerica Templeton Global	March 1, 2010		1.20	%
Transamerica Third Avenue Value	March 1, 2010		1.00	%
Transamerica Thornburg International Value	March 1, 2010		1.35	%
Transamerica UBS Dynamic Alpha	March 1, 2010		1.65	%**
Transamerica UBS Large Cap Value	March 1, 2010		1.02	%
Transamerica Value Balanced	March 1, 2010		1.20	%
Transamerica Van Kampen Emerging Markets Debt	March 1, 2010		1.15	%
Transamerica Van Kampen Mid-Cap Growth	March 1, 2010		1.00	%
Transamerica Van Kampen Small Company Growth	March 1, 2010		1.15	%
Transamerica WMC Emerging Markets	March 1, 2010		1.40	%

*	The Operating Expense Limit for Class P shares of: Transamerica Balanced shall be 1.10%, Transamerica Diversified Equity shall be 1.15%, Transamerica Equity shall be 1.15%, Transamerica Growth Opportunities shall be 1.40%, Transamerica High Yield Bond shall be 0.90% and Transamerica Legg Mason Partners All Cap shall be 1.40%.
**	Exclusive of dividend expense on short sales.
†	Effective May 1, 2009, the Investment Manager agrees to further reduce the Fund Operating Expenses of Transamerica Short-Term Bond by waiving 0.10% of its investment management fees payable to it by Transamerica Short-Term Bond for one year through May 1, 2010. In addition, the Investment Manager agrees that 0.10% of the 0.35% 12b-1 fee applicable to Class A shares of Transamerica Short-Term Bond will be waived for one year through May 1, 2010.

SCHEDULE B

TRANSAMERICA FUNDS

FUNDS SUBJECT TO EXPENSE REIMBURSEMENT

FUND NAME                                                                                                                                   

Transamerica AllianceBernstein International Value*
Transamerica Asset Allocation — Conservative Portfolio
Transamerica Asset Allocation — Growth Portfolio
Transamerica Asset Allocation — Moderate Growth Portfolio
Transamerica Asset Allocation — Moderate Portfolio
Transamerica Balanced
Transamerica BlackRock Global Allocation*
Transamerica BlackRock Large Cap Value
Transamerica BlackRock Natural Resources
Transamerica BNY Mellon Market Neutral Strategy
Transamerica Convertible Securities
Transamerica Diversified Equity
Transamerica Equity*
Transamerica Evergreen International Small Cap
Transamerica Federated Market Opportunity*
Transamerica Flexible Income
Transamerica Growth Opportunities*
Transamerica High Yield Bond*
Transamerica JPMorgan Core Bond
Transamerica JPMorgan International Bond*
Transamerica JPMorgan Mid Cap Value
[Transamerica Legg Mason Partners All Cap*]
Transamerica Loomis Sayles Bond
Transamerica Marsico International Growth
Transamerica Money Market
Transamerica Multi-Manager Alternative Strategies Portfolio
Transamerica Multi-Manager International Portfolio*
Transamerica Neuberger Berman International*
Transamerica Oppenheimer Developing Markets*
Transamerica Oppenheimer Small-& Mid-Cap Value
Transamerica Schroders International Small Cap
Transamerica Science & Technology
Transamerica Short-Term Bond
Transamerica Small/Mid Cap Value
Transamerica Templeton Global
Transamerica Third Avenue Value
Transamerica Thornburg International Value
Transamerica UBS Dynamic Alpha
Transamerica UBS Large Cap Value
Transamerica Value Balanced*
Transamerica Van Kampen Emerging Markets Debt
Transamerica Van Kampen Mid Cap Growth*

Transamerica Van Kampen Small Company Growth
Transamerica WMC Emerging Markets

* The Fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

EX-99.14

Exhibit (14)

CONSENT OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRMS

We hereby consent to the incorporation by reference in this Registration Statement on Form N-14 of our report dated December 29, 2008, relating to the financial statements and financial highlights which appear in the October 31, 2008 Annual Report of Transamerica Balanced, Transamerica Value Balanced, Transamerica Science & Technology, Transamerica Templeton Global, Transamerica Equity, Transamerica Legg Mason Partners All Cap, Transamerica Growth Opportunities, Transamerica Flexible Income and Transamerica Convertible Securities, which is also incorporated by reference into the Registration Statement. We also consent to the references to us under the headings “Financial Highlights”, “Experts”, “Representations and Warranties” and “Independent Registered Certified Public Accounting Firm” in such Registration Statement.

/s/ PricewaterhouseCoopers LLP
Tampa, Florida
August 28, 2009

Exhibit (14)

We consent to the references to our firm under the captions “Financial Highlights” in each Prospectus and “Independent Registered Public Accounting Firm” and “Financial Statements” in the Statement of Additional Information of Transamerica Investors, Inc., each dated May 1, 2009, which are incorporated by reference in the Combined Proxy Statement/Prospectus in the Registration Statement of Transamerica Investors, Inc. on Form N-14.

We also consent to the references to our firm under the captions “Financial Highlights”, “Experts” and “Representations and Warranties” in the Combined Proxy Statement/Prospectus of Transamerica Investors, Inc. and to the incorporation by reference of our report, dated February 24, 2009, on the financial statements and financial highlights of Transamerica Premier High Yield Bond Fund and Transamerica Premier Cash Reserve Fund as of December 31, 2008 included in this Registration Statement of Transamerica Investors, Inc. on Form N-14.

/s/ ERNST & YOUNG LLP

New York, New York
August 31, 2009

EX-99.16

Exhibit (16)

TRANSAMERICA IDEX MUTUAL FUNDS
POWER OF ATTORNEY

     KNOW ALL PERSONS BY THESE PRESENT, that the undersigned make, constitute and appoint JOHN K. CARTER, DENNIS P. GALLAGHER and ELIZABETH L. BELANGER his or her true and lawful attorney-in-fact and agent in his or her name, place and stead, in any and all capacities, and on his or her behalf with full power of substitution and resubstitution to sign any and all registration statements on Form N-14 and any other regulatory filings made applicable to Transamerica IDEX Mutual Funds (the “Fund”) and its series and any amendments, exhibits, or supplements thereto, and to file and/or withdraw the same, with all other documents in connection therewith, with the U.S. Securities and Exchange Commission, granting unto said attorney-in fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done, as fully to intents and purposes as he or she might or could do in person in his or her capacity as a Trustee of the Fund, hereby ratifying and confirming all that said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

     THIS POWER OF ATTORNEY may be executed in multiple counterparts that together constitute a single document.

     IN WITNESS WHEREOF, each of the undersigned has executed this Power of Attorney in the capacities and on the dates indicated.

/s/ John K. Carter
John K. Carter, Trustee and Chairperson	Date: November 6, 2007
/s/ Leo J. Hill
Leo J. Hill, Trustee	Date: November 7, 2007
/s/ Neal M. Jewell
Neal M. Jewell, Trustee	Date: November 7, 2007
/s/ Russell A. Kimball
Russell A. Kimball, Trustee	Date: November 7, 2007
/s/ Eugene M. Mannella
Eugene M. Mannella, Trustee	Date: November 7, 2007
/s/ Norm R. Nielsen
Norm R. Nielsen, Trustee	Date: November 7, 2007
/s/ Joyce Galpern Norden
Joyce Galpern Norden, Trustee	Date: November 7, 2007
/s/ Patricia Sawyer
Patricia Sawyer, Trustee	Date: November 6, 2007
/s/ John W. Waechter
John W. Waechter, Trustee	Date: November 7, 2007

TRANSAMERICA FUNDS
POWER OF ATTORNEY

     KNOW ALL PERSONS BY THESE PRESENT, that the undersigned makes, constitutes and appoints JOHN K. CARTER, DENNIS P. GALLAGHER and ELIZABETH L. BELANGER her true and lawful attorney-in-fact and agent in her name, place and stead, in any and all capacities, and on her behalf with full power of substitution and resubstitution to sign any and all registration statements on Form N-14 and any other regulatory filings made applicable to Transamerica Funds (the “Fund”) and its series and any amendments, exhibits, or supplements thereto, and to file and/or withdraw the same, with all other documents in connection therewith, with the U.S. Securities and Exchange Commission, granting unto said attorney-in fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done, as fully to intents and purposes as she might or could do in person in her capacity as a Trustee of the Fund, hereby ratifying and confirming all that said attorney-in-fact and agent, or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

     IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney in the capacity and on the date indicated.

/s/ Sandra N. Bane
Sandra N. Bane, Trustee	Date: March 1, 2008

TRANSAMERICA FUNDS
POWER OF ATTORNEY

     KNOW ALL PERSONS BY THESE PRESENT, that the undersigned makes, constitutes and appoints JOHN K. CARTER and DENNIS P. GALLAGHER his true and lawful attorney-in-fact and agent in his name, place and stead, in any and all capacities, and on his behalf with full power of substitution and resubstitution to sign any and all registration statements on Form N-14 and any other regulatory filings made applicable to Transamerica Funds (the “Fund”) and its series and any amendments, exhibits, or supplements thereto, and to file and/or withdraw the same, with all other documents in connection therewith, with the U.S. Securities and Exchange Commission, granting unto said attorney-in fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done, as fully to intents and purposes as he might or could do in person in his capacity as a Trustee of the Fund, hereby ratifying and confirming all that said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

     IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney in the capacity and on the date indicated.

/s/ David W. Jennings
David W. Jennings, Trustee	Date: July 22, 2009

EX-99.17.C

TRANSAMERICA FUNDS

Supplement dated August 14, 2009 to the Prospectus dated March 1, 2009
and the Statement of Additional Information dated July 1, 2009, each as previously supplemented

* * *

Transamerica Legg Mason Partners All Cap

The following information supplements information concerning Transamerica Legg Mason Partners All Cap in the Prospectus and Statement of Additional Information:

The Board of Trustees of Transamerica Legg Mason Partners All Cap (the “Fund”) has approved changes to the Fund’s investment objective, strategies and principal risks, as well as the Fund’s name, effective on or about November 6, 2009. These changes do not require shareholder approval, and are described below. The Board has also approved a new investment sub-advisory agreement with Transamerica Investment Management, LLC (“TIM”) as the new sub-adviser for the Fund. The proposed change in sub-adviser requires shareholder approval, and Fund shareholders will receive proxy materials and will be asked to vote.

In addition, the Board has approved a reorganization pursuant to which the Fund would acquire all of the assets of, and assume all of the liabilities of, Transamerica Premier Focus Fund, a series of Transamerica Investors, Inc., in exchange for shares of the Fund. The reorganization is subject to the satisfaction of certain conditions. If the closing conditions are satisfied, the reorganization is expected to occur during the fourth quarter of 2009.

In connection with the proposed change in sub-adviser for the Fund, the Fund will change its name from Transamerica Legg Mason Partners All Cap to Transamerica Focus, and there will be changes in the investment objective, strategies and policies of the Fund as described below. In addition to the principal risks to which the Fund is currently subject, the Fund’s revised investment objective and strategies may also subject the Fund to Short Sales risk, Fixed-Income Securities risk and Focused Investing risk, as described below. The Fund will no longer consider Preferred Stock risk or Convertible Securities risk to be principal risks. The changes to the Fund’s investment objective, strategies, policies and principal risks will only take place if shareholders approve the proposed change in sub-adviser.

The investment adviser of the Fund, Transamerica Asset Management, Inc., as well as the current investment advisory fee structure, will remain the same. The sub-classification of the Fund as a non-diversified company and its fundamental investment restrictions will also remain the same.

Assuming the shareholders approve the proposal to approve TIM as the new sub-adviser for the Fund, the following information will then apply to the Fund.

     OBJECTIVE:

     The investment objective of Transamerica Focus is to seek to maximize long-term growth.

     PRINCIPAL STRATEGIES AND POLICIES:

     The Fund will seek to achieve its objective by investing primarily in domestic equity securities that, in TIM’s opinion, are trading at a material discount to intrinsic value. TIM assesses intrinsic value primarily through discounted cash flow analysis, though acquisition and comparable company valuation analyses may be used to a lesser extent. The Fund will generally invest in domestic equity securities of any size. The Fund may also invest up to 10% of its assets in short sale positions.

     TIM will use a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual companies. The portfolio will be constructed one company at a time. Each company will pass through a research process and stand on its own merits as a viable investment in TIM’s opinion.

     TIM’s equity management team selects U.S. companies showing:

• strong potential for shareholder value creation

• high barriers to competition

• solid free cash flow generating ability

• excellent capital allocation discipline

• experienced management aligned with shareholder interests

     TIM seeks out dominant business franchises where the long-term, value-creating potential has not fully been recognized by the market.

     Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options and swaps, and also in foreign securities.

     In the event TIM is unable to identify sufficient investments that meet the Fund’s criteria, the Fund may maintain a balance in cash and cash equivalents that may range up to 40% of total assets.

     The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

ADDITIONAL PRINCIPAL RISKS:

n  Short Sales

     A short sale may be effected by selling a security that the fund does not own. In order to deliver the security to the purchaser, the fund borrows the security, typically from a broker/dealer or an institutional investor. The fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the fund would incur a loss; conversely, if the price declines, the fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the fund held only long positions. The fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.

     A short sale may also be effected “against the box” if, at all times when the short position is open, the fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the fund would forego the potential realization of the increased value of the shares sold short.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

- market risk: fluctuations in market value

- interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

- prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

- extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

- default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Focused Investing

To the extent the fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

* * *

Investors Should Retain this Supplement for Future Reference

2

TRANSAMERICA ASSET MANAGEMENT GROUP
Transamerica Funds
Transamerica Series Trust
Transamerica Investors, Inc.
Transamerica Partners Funds Group
Transamerica Partners Funds Group II (each, a “fund”)

Supplement dated August 4, 2009 to the Prospectuses and Statements of Additional Information

     The following supplements the Prospectus and Statement of Additional Information as applicable for each fund listed below on Schedules I, II and III:

     Rationalization. The fund’s Board has approved a number of initiatives designed to achieve a more cohesive, focused and streamlined fund complex, and has authorized seeking shareholder approval for those initiatives where shareholder approval is required.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed as a “Target Fund” on Schedule I to this Supplement:

     Reorganization. The fund’s Board has approved a reorganization pursuant to which the fund’s assets would be acquired, and its liabilities would be assumed, by the fund (the “Destination Fund”) listed opposite the fund on Schedule I in exchange for shares of the Destination Fund. The fund would then be liquidated, and shares of the Destination Fund would be distributed to fund shareholders.

     Under the reorganization, fund shareholders would receive shares of the Destination Fund with the same aggregate net asset value as their shares of the fund. It is anticipated that no gain or loss for Federal income tax purposes would be recognized by fund shareholders as a result of the reorganization.

     The reorganization is subject to the satisfaction of certain conditions, including approval by fund shareholders (if so indicated on Schedule I). Materials describing the reorganization are expected to be mailed later in 2009 (early 2010 for Transamerica Series Trust funds). If the closing conditions are satisfied, the reorganization is expected to occur during the fourth quarter of 2009 (second quarter of 2010 for Transamerica Series Trust funds). Prior to the reorganization, shareholders can continue to purchase, redeem and exchange shares subject to the limitations described in the fund’s Prospectus.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed on Schedule II to this Supplement:

     Liquidation. The fund’s Board has approved the termination and liquidation of the fund. Effective September 1, 2009, the fund will no longer be accepting purchase orders for its shares. The fund will be liquidated on or about September 30, 2009.

     In order to achieve an orderly liquidation, a portion of the fund’s assets may be converted into cash and/or money market securities prior to September 30, 2009. Should a fund convert its assets to cash and/or money market securities, the fund would no longer be pursuing its stated investment objective.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed on Schedule III to this Supplement:

     New subadviser. The fund’s Board has approved a new subadviser for the fund, as indicated for the fund on Schedule III. In each case the new subadviser is an affiliate of Transamerica. Under the Investment Company Act of 1940, shareholder approval of the agreement with the new subadviser must be obtained, and the Board has authorized seeking such approval. Proxy materials describing the new subadviser are expected to be mailed later in 2009. If shareholder approval is obtained, the new agreement could take effect in the fourth quarter of 2009.

* * *

	Date of Prospectus
Fund	and Statement of Additional Information
Transamerica Funds	Prospectus — March 1, 2009
Transamerica American Century Large Company Value	Statement of Additional Information — July 1, 2009
Transamerica Balanced
Transamerica Convertible Securities
Transamerica Diversified Equity
Transamerica Equity
Transamerica Evergreen Health Care
Transamerica Evergreen International Small Cap
Transamerica Flexible Income
Transamerica Growth Opportunities
Transamerica High Yield Bond
Transamerica Legg Mason Partners All Cap
Transamerica Marsico Growth
Transamerica Marsico International Growth
Transamerica Money Market
Transamerica Science & Technology
Transamerica Templeton Global
Transamerica Value Balanced
Transamerica Series Trust	May 1, 2009
Transamerica American Century Large Company Value VP
Transamerica Balanced VP
Transamerica BlackRock Large Cap Value VP
Transamerica Diversified Equity VP
Transamerica Jennison Growth VP
Transamerica Legg Mason Partners All Cap VP
Transamerica Marsico Growth VP
Transamerica Munder Net 50 VP
Transamerica Science & Technology VP
Transamerica T. Rowe Price Equity Income VP
Transamerica T. Rowe Price Growth Stock VP
Transamerica Templeton Global VP
Transamerica Value Balanced VP
Transamerica Investors, Inc.	May 1, 2009
Transamerica Premier Balanced Fund
Transamerica Premier Cash Reserve Fund
Transamerica Premier Diversified Equity Fund
Transamerica Premier Equity Fund
Transamerica Premier Focus Fund
Transamerica Premier Growth Opportunities Fund
Transamerica Premier High Yield Bond Fund
Transamerica Premier Institutional Bond Fund
Transamerica Premier Institutional Diversified Equity Fund
Transamerica Premier Institutional Equity Fund
Transamerica Premier Institutional Small Cap Value Fund

	Date of Prospectus
Fund	and Statement of Additional Information
Transamerica Partners Funds Group	May 1, 2009
Transamerica Partners Core Bond
Transamerica Partners Growth
Transamerica Partners Large Growth
Transamerica Partners Large Value
Transamerica Partners Total Return Bond
Transamerica Partners Value
Transamerica Partners Funds Group II	May 1, 2009
Transamerica Partners Institutional Core Bond
Transamerica Partners Institutional Growth
Transamerica Partners Institutional Large Growth
Transamerica Partners Institutional Large Value
Transamerica Partners Institutional Total Return Bond
Transamerica Partners Institutional Value

Schedule I

Target Fund(s)	Destination Fund
Transamerica Premier Balanced Fund	Transamerica Balanced
Transamerica Value Balanced
Transamerica Premier Cash Reserve Fund*	Transamerica Money Market
Transamerica Premier Diversified Equity Fund	Transamerica Diversified Equity
Transamerica Premier Institutional Diversified Equity Fund
Transamerica Science & Technology
Transamerica Templeton Global
Transamerica Premier Equity Fund	Transamerica Equity
Transamerica Premier Institutional Equity Fund
Transamerica Premier Focus Fund	Transamerica Legg Mason Partners All Cap
Transamerica Premier Growth Opportunities Fund	Transamerica Growth Opportunities
Transamerica Premier High Yield Bond Fund*	Transamerica High Yield Bond
Transamerica Convertible Securities	Transamerica Flexible Income
Transamerica Partners Value	Transamerica Partners Large Value
Transamerica Partners Growth	Transamerica Partners Large Growth
Transamerica Partners Total Return Bond	Transamerica Partners Core Bond
Transamerica Partners Institutional Value	Transamerica Partners Institutional Large Value
Transamerica Partners Institutional Growth	Transamerica Partners Institutional Large Growth
Transamerica Partners Total Institutional Return Bond	Transamerica Partners Institutional Core Bond

* Requires shareholder approval.

Target Fund(s)	Destination Fund
Transamerica Templeton Global VP	Transamerica Diversified Equity VP
Transamerica Science & Technology VP
Transamerica Munder Net 50 VP*
Transamerica Value Balanced VP	Transamerica Balanced VP
Transamerica American Century Large Company Value VP*	Transamerica BlackRock Large Cap Value VP
Transamerica T. Rowe Price Equity Income VP*
Transamerica Marsico Growth VP	Transamerica Jennison Growth VP
Transamerica T. Rowe Price Growth Stock VP

* Requires shareholder approval.

Schedule II

Fund

Transamerica American Century Large Company Value

Transamerica Evergreen Health Care

Transamerica Evergreen International Small Cap

Transamerica Marsico Growth

Transamerica Marsico International Growth

Transamerica Premier Institutional Bond Fund

Transamerica Premier Institutional Small Cap Value Fund

Schedule III

Fund	Proposed New Subadviser
Transamerica Legg Mason Partners All Cap	Transamerica Investment Management, LLC
Transamerica Legg Mason Partners All Cap VP	Transamerica Investment Management, LLC

Investors Should Retain this Supplement for Future Reference

TRANSAMERICA FUNDS

Transamerica Asset Allocation – Growth Portfolio
Transamerica Asset Allocation – Moderate Growth Portfolio
Transamerica Asset Allocation – Moderate Portfolio
Transamerica Asset Allocation – Conservative Portfolio
Transamerica Multi-Manager Alternative Strategies Portfolio
Transamerica Balanced
Transamerica Convertible Securities
Transamerica Equity
Transamerica Flexible Income
Transamerica Growth Opportunities
Transamerica Legg Mason Partners All Cap
Transamerica Multi-Manager International
Transamerica Science & Technology
Transamerica Small/Mid Cap Value
Transamerica Templeton Global
Transamerica Value Balanced
Transamerica Money Market

Supplement dated May 21, 2009 to the Retail Prospectus dated March 1, 2009, as previously supplemented

Transamerica Asset Allocation – Growth Portfolio

The following information supplements and amends information in the “List of Underlying Funds” in the Prospectus:

Transamerica Convertible Securities is added to the list of underlying funds. Transamerica Bjurman, Barry Micro Emerging Growth and Transamerica Legg Mason Partners Investors Value are deleted from the list of underlying funds.

* * *

Transamerica Asset Allocation – Moderate Growth Portfolio
Transamerica Asset Allocation – Moderate Portfolio
Transamerica Asset Allocation – Conservative Portfolio

The following information supplements and amends information in the “List of Underlying Funds” in the Prospectus:

Transamerica Bjurman, Barry Micro Emerging Growth and Transamerica Legg Mason Partners Investors Value are deleted from the list of underlying funds.

Transamerica Multi-Manager Alternative Strategies Portfolio

The following information supplements and amends information in the “List of Underlying Funds” in the Prospectus:

Transamerica Bjurman, Barry Micro Emerging Growth is deleted from the list of underlying funds.

* * *

Transamerica Balanced

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%	None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)	Nonea				5.00	%b		1.00	%c

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^d

	Class of Shares
	A			B			C
Management fees		0.80	%		0.80	%		0.80	%
Distribution and service (12b-1) fees		0.35	%		1.00	%		1.00	%
Other expenses		0.57	%		0.70	%		0.48	%
Total annual fund operating expenses		1.72	%		2.50	%		2.28	%
Expense reductione		0.00	%		0.05	%		0.00	%
Net operating expenses		1.72	%		2.45	%		2.28	%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses have been restated to reflect expenses the fund expects to incur during its current fiscal year.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.45%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.45%, excluding 12b-1 fees and extraordinary expenses.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	715	$	1,062	$	1,432	$	2,469
B†	$	748	$	1,074	$	1,426	$	2,640
C	$	331	$	712	$	1,220	$	2,615

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	715	$	1,062	$	1,432	$	2,469
B†	$	248	$	774	$	1,326	$	2,640
C	$	231	$	712	$	1,220	$	2,615

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

2

* * *
Transamerica Convertible Securities

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		4.75	%	None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)	Nonea				5.00	%b		1.00	%c

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^d

	Class of Shares
	A			B			C
Management fees		0.75	%		0.75	%		0.75	%
Distribution and service (12b-1) fees		0.35	%		1.00	%		1.00	%
Other expenses		0.38	%		0.48	%		0.28	%
Total annual fund operating expenses		1.48	%		2.23	%		2.03	%
Expense reductione		0.00	%		0.00	%		0.00	%
Net operating expenses		1.48	%		2.23	%		2.03	%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses have been restated to reflect expenses the fund expects to incur during its current fiscal year.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.35%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.35%, excluding 12b-1 fees and extraordinary expenses.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	618	$	921	$	1,245	$	2,159
B†	$	726	$	997	$	1,295	$	2,376
C	$	306	$	637	$	1,093	$	2,358

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	618	$	921	$	1,245	$	2,159
B†	$	226	$	697	$	1,195	$	2,376
C	$	206	$	637	$	1,093	$	2,358

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

* * *

3

Transamerica Equity

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

Class of Shares

A

B

C

T*

Maximum sales charge (load) imposed on purchases (as a % of offering price)

5.50

%

None

None

8.50

%

Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)

Nonea

5.00

%b

1.00

%c

None

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^d

	Class of Shares
	A			B			C			T*
Management fees		0.73	%		0.73	%		0.73	%		0.73	%
Distribution and service (12b-1) fees		0.35	%		1.00	%		1.00	%		0.00	%
Other expenses		0.58	%		0.91	%		0.62	%		0.29	%
Total annual fund operating expenses		1.66	%		2.64	%		2.35	%		1.02	%
Expense reductione		0.14	%		0.47	%		0.18	%		0.00	%
Net operating expenses		1.52	%		2.17	%		2.17	%		1.02	%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses have been restated to reflect expenses the fund expects to incur during its current fiscal year.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.17%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.17%, excluding 12b-1 fees and extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.
*	Not available to new investors.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	696	$	1,032	$	1,390	$	2,396
B†	$	720	$	1,076	$	1,458	$	2,700
C	$	320	$	716	$	1,239	$	2,672
T	$	945	$	1,147	$	1,365	$	1,992

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	696	$	1,032	$	1,390	$	2,396
B†	$	220	$	776	$	1,358	$	2,700
C	$	220	$	716	$	1,239	$	2,672
T	$	945	$	1,147	$	1,365	$	1,992

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

4

* * *

Transamerica Flexible Income

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		4.75	%	None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)	Nonea				5.00	%b		1.00	%c

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^d

	Class of Shares
	A			B			C
Management fees		0.73	%		0.73	%		0.73	%
Distribution and service (12b-1) fees		0.35	%		1.00	%		1.00	%
Other expenses		0.41	%		0.48	%		0.37	%
Total annual fund operating expenses		1.49	%		2.21	%		2.10	%
Expense reductione		0.00	%		0.00	%		0.00	%
Net operating expenses		1.49	%		2.21	%		2.10	%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses have been restated to reflect expenses the fund expects to incur during its current fiscal year.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.50%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.50%, excluding 12b-1 fees and extraordinary expenses.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	619	$	924	$	1,250	$	2,170
B†	$	724	$	991	$	1,285	$	2,362
C	$	313	$	658	$	1,129	$	2,431

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	619	$	924	$	1,250	$	2,170
B†	$	224	$	691	$	1,185	$	2,362
C	$	213	$	658	$	1,129	$	2,431

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

* * *

5

Transamerica Growth Opportunities

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%	None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)	Nonea				5.00	%b		1.00	%c

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^d

	Class of Shares
	A			B			C
Management fees		0.80	%		0.80	%		0.80	%
Distribution and service (12b-1) fees		0.35	%		1.00	%		1.00	%
Other expenses		1.12	%		1.19	%		0.92	%
Total annual fund operating expenses		2.27	%		2.99	%		2.72	%
Expense reductione		0.52	%		0.59	%		0.32	%
Net operating expenses		1.75	%		2.40	%		2.40	%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses have been restated to reflect expenses the fund expects to incur during its current fiscal year.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.40%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.40%, excluding 12b-1 fees and extraordinary expenses. This fund may not recapture any fees waived and or reimbursed prior to March 1, 2008.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	718	$	1,173	$	1,654	$	2,974
B†	$	743	$	1,169	$	1,620	$	3,098
C	$	343	$	814	$	1,411	$	3,028

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	718	$	1,173	$	1,654	$	2,974
B†	$	243	$	869	$	1,520	$	3,098
C	$	243	$	814	$	1,411	$	3,028

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

* * *

6

Transamerica Legg Mason Partners All Cap

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%	None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)	Nonea				5.00	%b		1.00	%c

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^d

	Class of Shares
	A			B			C
Management fees		0.80	%		0.80	%		0.80	%
Distribution and service (12b-1) fees		0.35	%		1.00	%		1.00	%
Other expenses		0.76	%		0.86	%		0.64	%
Total annual fund operating expenses		1.91	%		2.66	%		2.44	%
Expense reductione		0.36	%		0.46	%		0.24	%
Net operating expenses		1.55	%		2.20	%		2.20	%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses have been restated to reflect expenses the fund expects to incur during its current fiscal year.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses. This fund may not recapture any fees waived and or reimbursed prior to March 1, 2008.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,084	$	1,493	$	2,632
B†	$	723	$	1,083	$	1,469	$	2,777
C	$	323	$	738	$	1,279	$	2,758

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,084	$	1,493	$	2,632
B†	$	223	$	783	$	1,369	$	2,777
C	$	223	$	738	$	1,279	$	2,758

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

* * *

7

Transamerica Multi-Manager International

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%	None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)	Nonea				5.00	%b		1.00	%c

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^d

	Class of Shares
	A			B			C
Management fees		0.10	%		0.10	%		0.10	%
Distribution and service (12b-1) fees		0.35	%		1.00	%		1.00	%
Other expenses		0.36	%		0.56	%		0.42	%
Acquired fund fees and expenses (fees and expenses of underlying funds)		1.10	%		1.10	%		1.10	%
Total annual fund operating expenses		1.91	%		2.76	%		2.62	%
Expense reductione		0.01	%		0.21	%		0.07	%
Net operating expenses		1.90	%		2.55	%		2.55	%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses have been restated to reflect expenses the fund expects to incur during its current fiscal year.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses. This fund may not recapture any fees waived and or reimbursed prior to March 1, 2008.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	732	$	1,116	$	1,524	$	2,659
B†	$	758	$	1,136	$	1,541	$	2,870
C	$	358	$	808	$	1,384	$	2,949

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	732	$	1,116	$	1,524	$	2,659
B†	$	258	$	836	$	1,441	$	2,870
C	$	258	$	808	$	1,384	$	2,949

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

8

* * *

Transamerica Science & Technology

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%	None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)	Nonea				5.00	%b		1.00	%c

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^d

	Class of Shares
	A			B			C
Management fees		0.78	%		0.78	%		0.78	%
Distribution and service (12b-1) fees		0.35	%		1.00	%		1.00	%
Other expenses		1.10	%		1.42	%		0.96	%
Total annual fund operating expenses		2.23	%		3.20	%		2.74	%
Expense reductione		0.70	%		1.02	%		0.56	%
Net operating expenses		1.53	%		2.18	%		2.18	%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses have been restated to reflect expenses the fund expects to incur during its current fiscal year.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.18%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.18%, excluding 12b-1 fees and extraordinary expenses.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	697	$	1,145	$	1,619	$	2,922
B†	$	721	$	1,191	$	1,685	$	3,208
C	$	321	$	797	$	1,400	$	3,030

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	697	$	1,145	$	1,619	$	2,922
B†	$	221	$	891	$	1,585	$	3,208
C	$	221	$	797	$	1,400	$	3,030

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

9

* * *

Transamerica Small/Mid Cap Value

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%	None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)	Nonea				5.00	%b		1.00	%c

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^d

	Class of Shares
	A			B			C
Management fees		0.80	%		0.80	%		0.80	%
Distribution and service (12b-1) fees		0.35	%		1.00	%		1.00	%
Other expenses		0.60	%		0.54	%		0.49	%
Total annual fund operating expenses		1.75	%		2.34	%		2.29	%
Expense reductione		0.00	%		0.00	%		0.00	%
Net operating expenses		1.75	%		2.34	%		2.29	%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses have been restated to reflect expenses the fund expects to incur during its current fiscal year.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.40%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.40%, excluding 12b-1 fees and extraordinary expenses.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	718	$	1,071	$	1,447	$	2,499
B†	$	737	$	1,030	$	1,350	$	2,529
C	$	332	$	715	$	1,225	$	2,626

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	718	$	1,071	$	1,447	$	2,499
B†	$	237	$	730	$	1,250	$	2,529
C	$	232	$	715	$	1,225	$	2,626

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

10

* * *

Transamerica Templeton Global

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%	None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)	Nonea				5.00	%b		1.00	%c

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^d

	Class of Shares
	A			B			C
Management fees		0.80	%		0.80	%		0.80	%
Distribution and service (12b-1) fees		0.35	%		1.00	%		1.00	%
Other expenses		0.95	%		1.44	%		0.93	%
Total annual fund operating expenses		2.10	%		3.24	%		2.73	%
Expense reductione		0.55	%		1.04	%		0.53	%
Net operating expenses		1.55	%		2.20	%		2.20	%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses have been restated to reflect expenses the fund expects to incur during its current fiscal year.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,122	$	1,569	$	2,806
B†	$	723	$	1,201	$	1,703	$	3,205
C	$	323	$	797	$	1,398	$	3,022

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,122	$	1,569	$	2,806
B†	$	223	$	901	$	1,603	$	3,205
C	$	223	$	797	$	1,398	$	3,022

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

* * *

11

Transamerica Value Balanced

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5.50	%	None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)	Nonea				5.00	%b		1.00	%c

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^d

	Class of Shares
	A			B			C
Management fees		0.75	%		0.75	%		0.75	%
Distribution and service (12b-1) fees		0.35	%		1.00	%		1.00	%
Other expenses		0.79	%		1.00	%		0.66	%
Total annual fund operating expenses		1.89	%		2.75	%		2.41	%
Expense reductione		0.34	%		0.55	%		0.21	%
Net operating expenses		1.55	%		2.20	%		2.20	%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses have been restated to reflect expenses the fund expects to incur during its current fiscal year.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses. This fund may not recapture any fees waived and or reimbursed prior to March 1, 2008.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,080	$	1,485	$	2,614
B†	$	723	$	1,101	$	1,506	$	2,833
C	$	323	$	732	$	1,267	$	2,730

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,080	$	1,485	$	2,614
B†	$	223	$	801	$	1,406	$	2,833
C	$	223	$	732	$	1,267	$	2,730

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

* * *

12

Transamerica Money Market

The following information supplements and amends information in the “Fee Table” in the section entitled “Fees and Expenses” in the Prospectus:

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. Actual expenses may vary significantly.

Shareholder Fees (fees paid directly from your investment)

	Class of Shares
	A	B	C
Maximum sales charge (load) imposed on purchases (as a % of offering price)	None	None	None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)	None	5.00%a	1.00%b

Annual Fund Operating Expenses (expenses that are deducted from fund assets)^c

	Class of Shares
	A	B	C
Management fees	0.40%	0.40%	0.40%
Distribution and service (12b-1) fees	0.35%	1.00%	1.00%
Other expenses	0.39%	0.40%	0.31%
Total annual fund operating expenses	1.14%	1.80%	1.71%
Expense reductiond,e	0.25%	0.27%	0.19%
Net operating expenses	0.89%	1.53%	1.52%

a	Purchases of Class B shares are subject to a declining contingent deferred sales charge (“CDSC”) if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
b	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
c	Annual fund operating expenses are based upon the fund’s expenses for the fiscal year ended October 31, 2008, restated to include an adjustment of 0.06%, 0.05% and 0.04% for Class A, Class B and Class C, respectively, as a result of the U.S. Treasury’s Temporary Guarantee Program for Money Market Funds (the “Program”). This adjustment represents costs associated with participation in the Program for the period November 1, 2008 through September 18, 2009, and are not covered by the contractual expense cap currently in effect. The Program has currently been extended through September 18, 2009.
d	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010 to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 0.48%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.48%, excluding 12b-1 fees and extraordinary expenses.
e	In order to avoid a negative yield, TAM or any of its affiliates may waive fees or reimburse expenses of one or more classes of the fund. Any such waiver or expense reimbursement would be voluntary, could be discontinued at any time, and is subject in certain circumstances to reimbursement by the fund to TAM or its affiliates. There is no guarantee that the fund will be able to avoid a negative yield.

The following information supplements and amends information in the “Example” in the section entitled “Fees and Expenses” in the Prospectus:

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:

Share Class	1 year		3 years		5 years		10 years
A	$	91	$	325	$	577	$	1,300
B†	$	656	$	830	$	1,028	$	1,867
C	$	255	$	512	$	893	$	1,964

If the shares are not redeemed:

Share Class	1 year		3 years		5 years		10 years
A	$	91	$	325	$	577	$	1,300
B†	$	156	$	530	$	928	$	1,867
C	$	155	$	512	$	893	$	1,964

† Examples for Class B shares assume conversion to Class A shares eight years after purchase.

13

* * *

The following information supplements information concerning Transamerica Money Market in the Prospectus:

This information is effective through September 18, 2009.

Transamerica Money Market (the “Fund”) has enrolled in the Temporary Guarantee Program for money market funds (the “Program”) established by the United States Department of the Treasury (the “Treasury”). Under the Program, the Treasury guarantees the $1.00 dollar per share value of Fund shares outstanding as of September 19, 2008, subject to certain terms and limitations.

A shareholder’s holdings in the Fund as of September 19, 2008 represent the maximum amount of assets eligible for reimbursement under the Program. Any increase in the number of Fund shares held in an account after the close of business on September 19, 2008 will not be guaranteed. If the number of Fund shares held in the account fluctuates over the period covered by the Program, shareholders will be covered for either the number of Fund shares held as of the close of business on September 19, 2008, or the current number of Fund shares, whichever is less. If a Fund shareholder closes his or her Fund account, any future investment in the Fund will not be guaranteed under the Program.

The Portfolio is managed to maintain a stable $1.00 net asset value (“NAV”). Under the Program, the Treasury will guarantee to investors in money market funds managed to maintain a stable $1.00 NAV that, subject to the availability of assets under the Program, in the event that a fund’s NAV should drop below $0.995 and the fund elects to liquidate, eligible fund shareholders would be entitled to receive a payment equal to any shortfall between the amount received upon liquidation and $1.00 per fund share held as of the close of business on September 19, 2008.

The Program will provide coverage for claims up to $50 billion dollars and claims will be paid in the order received until that amount is exhausted. Consequently, participation in the Program does not guarantee that the Fund’s investors will receive a $1.00 NAV upon the redemption, or liquidation of their shares.

The initial term of the Program expired on December 18, 2008. In November 2008, the Treasury extended the Program through April 30, 2009, and the Fund participated in this extension of the Program. On March 31, 2009, the Treasury further extended the Program through September 18, 2009. The Treasury does not have discretion to continue the Program beyond September 18, 2009.

The Fund’s Board of Trustees has determined that it is in the best interests of the Fund and its shareholders to participate in the Program through September 18, 2009. In order to participate in the extended period of the Program, the Fund paid to the Treasury a fee in the amount of 0.015% of the Fund’s net asset value as of the close of business on September 19, 2008. The Fund previously paid fees in the combined amount of 0.025% of the Fund’s net asset value as of the close of business on September 19, 2008 to participate in the Program through April 30, 2009. This expense was borne by the Fund without regard to any expense limitation agreement in effect for the Fund.

Additional information regarding the Program is available at http//www.ustreas.gov.

* * *

The paragraph relating to Transamerica BlackRock Large Cap Value in “Section B – Description of Certain Underlying Funds” of the Prospectus is deleted and replaced with the following:

• Transamerica BlackRock Large Cap Value seeks long-term capital growth by investing primarily in a diversified portfolio of equity securities of large cap companies located in the United States. Under normal circumstances, the fund invests at least 80% of its net assets in equity securities of large cap companies that, at the time of purchase, comprise the fund’s benchmark, the Russell 1000^® Value Index. The principal risks of investing in this underlying fund are: market risk; stock risk; value investing risk; and preferred stock risk.

* * *

Investors Should Retain this Supplement for Future Reference

14

Transamerica Funds

Prospectus March 1, 2009

• ASSET ALLOCATION FUNDS

        Transamerica Asset Allocation – Growth Portfolio
Transamerica Asset Allocation – Moderate Growth Portfolio
Transamerica Asset Allocation – Moderate Portfolio
Transamerica Asset Allocation – Conservative Portfolio

• MULTI-MANAGER SERIES FUNDS

        Transamerica Multi-Manager Alternative Strategies Portfolio
Transamerica Multi-Manager International Portfolio

• U.S. STOCK FUNDS

        Transamerica Legg Mason Partners All Cap
Transamerica Equity
Transamerica Growth Opportunities
Transamerica Small/Mid Cap Value

• SPECIALTY FUNDS

        Transamerica Convertible Securities
Transamerica Science & Technology
• GLOBAL AND INTERNATIONAL STOCK FUNDS

        Transamerica Templeton Global

• BALANCED FUNDS

        Transamerica Balanced
Transamerica Value Balanced

• BOND FUNDS

        Transamerica High Yield Bond
Transamerica Flexible Income
Transamerica Short-Term Bond

• MONEY MARKET FUNDS

        Transamerica Money Market

Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.

Not insured by FDIC or any federal government agency. May lose value. Not a deposit of or guaranteed by any bank, bank affiliate, or credit union.

MPCA0309

Table Of Contents

Section A — Fund Descriptions
n  ASSET ALLOCATION FUNDS
	Transamerica Asset Allocation – Growth Portfolio	4
	Transamerica Asset Allocation – Moderate Growth Portfolio	9
	Transamerica Asset Allocation – Moderate Portfolio	14
	Transamerica Asset Allocation – Conservative Portfolio	19
n  MULTI-MANAGER SERIES FUNDS
	Transamerica Multi-Manager Alternative Strategies Portfolio	24
	Transamerica Multi-Manager International Portfolio	29
n  U.S. STOCK FUNDS
	Transamerica Legg Mason Partners All Cap	34
	Transamerica Equity	38
	Transamerica Growth Opportunities	43
	Transamerica Small/Mid Cap Value	48
n  SPECIALTY FUNDS
	Transamerica Convertible Securities	52
	Transamerica Science & Technology	56
n  GLOBAL AND INTERNATIONAL STOCK FUNDS
	Transamerica Templeton Global	60
n  BALANCED FUNDS
	Transamerica Balanced	65
	Transamerica Value Balanced	71
n  BOND FUNDS
	Transamerica High Yield Bond	77
	Transamerica Flexible Income	81
	Transamerica Short-Term Bond	87
n  MONEY MARKET FUNDS
	Transamerica Money Market	91
Financial Highlights		94
Section B — Description of Certain Underlying Funds		131

Each Transamerica Fund described in this prospectus invests in a range of securities, such as stocks and/or bonds. Please read this prospectus carefully before you invest or send money. It has been written to provide information and assist you in making an informed decision. If you would like additional information, please request a copy of the Statement of Additional Information (“SAI”).

In addition, we suggest you contact your financial professional or a Transamerica Funds customer service representative, who will assist you.

TO HELP YOU UNDERSTAND

In this prospectus, you’ll see symbols like the ones below. These are “icons,” graphic road signs that let you know at a glance the subject of the nearby paragraphs. The icons serve as tools for your convenience as you read this prospectus.

	OBJECTIVE What is the fund’s investment objective? Learn about your fund’s goal or objective.
	PRINCIPAL STRATEGIES AND POLICIES How does a fund go about trying to meet its goal? Read about the key types of investments each fund contains and what style of investment philosophy it employs.
	LIST OF UNDERLYING FUNDS What are the underlying funds in which the asset allocation portfolios may invest? See the list of all underlying funds.
	PRINCIPAL RISKS What are the specific key risks for an investor in the funds? Find out what key types of risks are associated with each fund.
	PAST PERFORMANCE What is the investment performance of the fund? See how well each fund has performed in the past year, five years, ten years or since its inception.
	FEES AND EXPENSES How much does it cost to invest in a fund? Learn about each fund’s fees and expenses.
	ADDITIONAL INFORMATION Who manages the fund and how much are they paid? See information about each fund’s advisers, as well as the fees paid to them.

An investment in a Transamerica Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

1

Table of Contents
Section C — Shareholder Information

n  INVESTMENT ADVISER		135
n  TO CONTACT TRANSAMERICA FUNDS		135
n  THE FOLLOWING INFORMATION APPLIES TO CLASS A, CLASS B, CLASS C AND CLASS T SHARES (CLASS T SHARES ARE CLOSED TO NEW INVESTORS)		135
n  OPENING AN ACCOUNT		135
	Minimum Investment	135
	By Mail	136
	Through an Authorized Dealer	136
n  BUYING SHARES		136
	By Check	136
	By Automatic Investment Plan	136
	By Telephone	136
	Through an Authorized Dealer	136
	By the Internet	136
	By Payroll Deduction	136
	By Wire Transfer	136
	Other Information	136
n  SELLING SHARES		137
	Direct Deposit – ACH	137
	Direct Deposit – Wire	137
	Check to Address of Record	137
	Check to Another Party/Address	137
	Systematic Withdrawal Plan (by Direct Deposit — ACH or Check)	137
	Through an Authorized Dealer	137
	Involuntary Redemptions	137
n  EXCHANGING SHARES		138
n  FEATURES AND POLICIES		138
	Checkwriting Service (For Class A Shares of Transamerica Money Market only)	138
	Customer Service	138
	Uncashed Checks Issued on Your Account	138
	Minimum Dividend Check Amounts	138
	Minimum Account Balance	139
	Telephone Transactions	139
	Retirement and ESA State Street Account Maintenance Fees	139
	Professional Fees	139
	Signature Guarantee	139
	Employer Sponsored Accounts	139
	E-mail Communication	140
	Reinvestment Privilege	140
	Statements and Reports	140
	e-Delivery	140
n  CHOOSING A SHARE CLASS		140
	Class A Shares – Front Load	140
	Class B Shares – Back Load	140
	Class C Shares – Level Load	141
	Class T Shares – Front Load (Transamerica Equity only)	141
	Contingent Deferred Sales Charge	141
n  WAIVERS AND/OR REDUCTIONS OF CHARGES		141
	Class A and Class T Sales Charge Reductions	141
	Waiver of Class A and Class T Initial Sales Charges	143
	Waiver of Class A, Class B, Class C, and Class T Contingent Deferred Sales Charges	143
n  THE FOLLOWING INFORMATION APPLIES TO CLASS R SHARES		143
n  CLASS R AVAILABILITY		144
n  OPENING AN ACCOUNT AND PURCHASING SHARES		144

2

n  SELLING SHARES		144
n  EXCHANGING SHARES		144
n  THE FOLLOWING INFORMATION APPLIES TO ALL SHARE CLASSES		144
	Market Timing/Excessive Trading	144
n  PRICING OF SHARES		145
	How Share Price Is Determined	145
	When Share Price Is Determined	145
	How NAV Is Calculated	145
n  DISTRIBUTION OF SHARES		146
	Distribution Plans	146
	Distribution of Class A Shares	146
	Distribution of Class B Shares	146
	Distribution of Class C Shares	146
	Distribution of Class R Shares	146
	Class T Shares (Transamerica Equity only)	146
	The Effect of Rule 12b-1 Plans	146
n  UNDERWRITING AGREEMENT		146
n  OTHER DISTRIBUTION OR SERVICE ARRANGEMENTS		146
n  DISTRIBUTIONS AND TAXES		147
	Taxes on Distributions in General	147
	Taxes on the Sale or Exchange of Shares	148
	Withholding Taxes	148
	Non-Resident Alien Withholding	148
	Other Tax Information	149
	Asset Allocation Funds	149
	Investment Policy Changes	149
n  APPENDIX A – MORE ON STRATEGIES AND RISKS		APPENDIX A-1
n  APPENDIX B – BOND RATINGS		APPENDIX B-1

3

Section A — Fund Descriptions

Transamerica Asset Allocation – Growth Portfolio

Summary of Risks and Returns

Objective

The objective of Transamerica Asset Allocation – Growth Portfolio is to seek long-term capital appreciation.

Principal Strategies and Policies

The fund seeks to achieve its investment objective by investing its assets in a diversified combination of underlying Transamerica Funds (“underlying funds”).

n	Under normal market conditions, it expects to invest primarily in underlying funds that invest primarily in equities.
n	Allocation of assets among the underlying funds is based on such things as prudent diversification principles, general market outlooks (both domestic and global), historical performance, global markets’ current valuations, and other global economic factors.
n	The fund may periodically adjust its allocations to favor investments in those underlying funds that it believes will provide the most favorable outlook for achieving its investment objective.
n	The fund may also invest directly in U.S. government securities and/or short-term commercial paper.

It is not possible to predict the extent to which the fund will be invested in a particular underlying fund at any time.

As a consequence of its investment strategies and policies, the fund may be a significant shareholder in certain underlying funds.

The fund’s portfolio construction manager, Morningstar Associates, LLC (the “Portfolio Construction Manager”), determines the fund’s asset allocations and periodic changes thereto, and other fund investments. The Portfolio Construction Manager may change the fund’s asset allocations and underlying funds at any time without notice to shareholders and without shareholder approval.

Please see Appendix A for more information about investment strategies.

List of Underlying Funds

This section lists the underlying funds in which the fund may invest; it is subject to change from time to time. For a summary of the respective investment objectives and principal investment strategies and risks of each underlying fund, please refer to Section B of this prospectus. Further information about an underlying fund is contained in that underlying fund’s prospectus, available at www.transamericafunds.com or by calling 1-888-233-4339.

n	Transamerica AllianceBernstein International Value
n	Transamerica American Century Large Company Value
n	Transamerica Balanced
n	Transamerica Bjurman, Barry Micro Emerging Growth
n	Transamerica BlackRock Global Allocation
n	Transamerica BlackRock Large Cap Value
n	Transamerica BlackRock Natural Resources
n	Transamerica BNY Mellon Market Neutral Strategy
n	Transamerica Clarion Global Real Estate Securities
n	Transamerica Equity
n	Transamerica Evergreen Health Care
n	Transamerica Evergreen International Small Cap
n	Transamerica Federated Market Opportunity
n	Transamerica Growth Opportunities
n	Transamerica Jennison Growth
n	Transamerica JPMorgan Mid Cap Value
n	Transamerica Legg Mason Partners Investors Value
n	Transamerica MFS International Equity
n	Transamerica Marsico Growth
n	Transamerica Marsico International Growth
n	Transamerica Money Market
n	Transamerica Neuberger Berman International
n	Transamerica Oppenheimer Developing Markets
n	Transamerica Oppenheimer Small- & Mid-Cap Value
n	Transamerica Schroders International Small Cap
n	Transamerica Science & Technology
n	Transamerica Small/Mid Cap Value
n	Transamerica Third Avenue Value
n	Transamerica Thornburg International Value
n	Transamerica UBS Dynamic Alpha
n	Transamerica UBS Large Cap Value
n	Transamerica Value Balanced
n	Transamerica Van Kampen Mid-Cap Growth
n	Transamerica Van Kampen Small Company Growth
n	Transamerica WMC Emerging Markets

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Asset Allocation

The Portfolio Construction Manager allocates the fund’s assets among various underlying funds. These allocations may be unsuccessful in maximizing the fund’s return and/or avoiding investment losses.

4

Transamerica Asset Allocation – Growth Portfolio

n  Underlying Funds

Because the fund invests its assets in various underlying funds, its ability to achieve its investment objective depends largely on the performance of the underlying funds in which it invests. The fund is indirectly subject to all of the risks associated with an investment in the underlying funds, as described in this prospectus and the prospectuses of the underlying funds. There can be no assurance that the investment objective of any underlying fund will be achieved. In addition, the fund will bear a pro rata portion of the operating expenses of the underlying funds in which it invests, and it is subject to business and regulatory developments affecting the underlying funds.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n	prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities
n	extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Investment Companies

To the extent that an underlying fund invests in other investment companies such as Exchange-Traded Funds (“ETFs”), it bears its pro rata share of these investment companies’ expenses, and is subject to the effects of the business and regulatory developments that affect these investment companies and the investment company industry generally.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

5

Transamerica Asset Allocation – Growth Portfolio

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Dow Jones Wilshire 5000 Total Market Index (“Wilshire 5000 Index”), a widely recognized, unmanaged index of market performance that tracks the returns of practically all publicly traded, U.S. headquartered stocks that trade on the major exchanges. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	6/30/2003		15	.84%
Worst Quarter:	12/31/2008		(22	.63)%

Average Annual Total Returns as of 12/31/08¹

							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(43	.48)%		(2	.55)%		(1	.26)%
Return after taxes on distributions3		(43	.70)%		(3	.12)%		(1	.68)%
Return after taxes on distributions and sale of fund shares3		(28	.05)%		(2	.11)%		(1	.03)%
Class B (Return before taxes only)		(43	.52)%		(2	.24)%		(1	.09)%
Class C (Return before taxes only)		(41	.14)%		(2	.02)%		2	.78%
Class R (Return before taxes only)		(40	.22)%		N/A			(11	.09)%
Wilshire 5000 Index (reflects no deduction for fees, expenses or taxes)		(37	.33)%		(1	.67)%		(0	.14)%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class B commenced operations on March 1, 2002. Class C commenced operations on November 11, 2002. Class R commenced operations on June 15, 2006.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C			R
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c		None
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C			R
Management fees		0	.10%		0	.10%		0	.10%		0	.10%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%		0	.50%
Other expenses		0	.20%		0	.20%		0	.16%		0	.23%
Acquired Fund Fees and Expenses (fees and expenses of underlying funds)		0	.93%		0	.93%		0	.93%		0	.93%
Total annual fund operating expensesf		1	.58%		2	.23%		2	.19%		1	.76%
Expense reductione		0	.00%		0	.00%		0	.00%		0	.00%
Net operating expensesf		1	.58%		2	.23%		2	.19%		1	.76%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008, restated to reflect deduction of distribution and service (“12b-1”) fees from the fund’s assets only, and not (in part) from the assets of the underlying funds.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses.
f	Fund operating expenses do not correlate to the ratios of expenses to average net assets in the financial highlights table, which do not include acquired (i.e., underlying) funds’ fees and expenses.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

6

Transamerica Asset Allocation – Growth Portfolio

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	702	$	1,021	$	1,363	$	2,325
B†	$	726	$	997	$	1,295	$	2,401
C	$	322	$	685	$	1,175	$	2,524
R	$	179	$	554	$	954	$	2,073
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	702	$	1,021	$	1,363	$	2,325
B†	$	226	$	697	$	1,195	$	2,401
C	$	222	$	685	$	1,175	$	2,524
R	$	179	$	554	$	954	$	2,073

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the annual rate of 0.10% of the fund’s average daily net assets.

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.10% of the fund’s average daily net assets.

Portfolio Construction Manager:

Morningstar Associates, LLC (“Morningstar”)
22 West Washington Street
Chicago, Illinois 60602

Portfolio Construction Manager Compensation:

The Portfolio Construction Manager receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.10% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Construction Team:

The fund is managed by the following portfolio construction team. In addition to this team, Morningstar utilizes a number of other internal asset allocation consultants that serve as an investment resource to the team. Prior to joining the portfolio construction team, Mr. Stout, Mr. Hale and Mr. McConnell served as asset allocation consultants since the fund’s inception; Mr. Kowara served as an asset allocation consultant since his return to Morningstar in 2004.

Michael Stout, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1993 as a research analyst covering closed-end funds. He moved to open-end fund coverage in early 1996, and in 1997 became a senior analyst and editor of stock-fund research. Mr. Stout was one of the founding members of Morningstar’s Institutional Investment Consulting Group, launched in 1998, and currently serves as a senior consultant. Prior to joining Morningstar, he was an investment consultant with A.G. Edwards & Sons and was an officer in the U.S. Air Force. He holds a B.A. from the Ohio State University, an M.B.A. from the University of Texas, and is a Chartered Financial Analyst. He began performing asset allocation services for the fund in 2006.

Jon Hale, Ph.D., CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1995 as an analyst covering closed-end funds and began covering open-end funds the next year. As a fund analyst, Mr. Hale covered funds across the full range of investment categories. From 1998 to 2000, he helped launch Morningstar’s Institutional Investment Consulting Group and then joined the management team at Domini Social Investments, LLC. Mr. Hale then rejoined the consulting group at Morningstar in November 2001 as a senior consultant. Prior to joining Morningstar, he taught at several universities. Mr. Hale holds a B.A. with Honors from the University of Oklahoma, and a Ph.D. in political science from Indiana University. He began performing asset allocation services for the fund in 2006.

Jeff McConnell, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1997 as a fund analyst, specializing in domestic equity. Mr. McConnell also worked as a stock analyst in Morningstar’s Equities Analysis Group. Prior to joining Morningstar, he worked as an institutional consultant at SEI Corporation. Mr. McConnell holds a B.A. in economics from Michigan State University and an M.B.A. from DePaul University. He is a Chartered Financial Analyst and a member of the Investment Analysts Society of Chicago. He began performing asset allocation services for the fund in 2006.

7

Transamerica Asset Allocation – Growth Portfolio

Maciej Kowara, Ph.D., CFA, Co-Portfolio Manager and Research & Development Consultant of Morningstar. Mr. Kowara joined Morningstar in February 2004 as the head of Morningstar’s research and development and quantitative analysis efforts. Prior to that, he spent five years as an analyst at Deutsche Bank’s Scudder Investments group and prior to joining Deutsche Bank, was a senior mutual-fund analyst at Morningstar specializing in fixed-income funds. Mr. Kowara holds a B.A. from University of Toronto and a Ph.D. from Harvard University. He is a Chartered Financial Analyst and a member of the Investment Analysts Society of Chicago. He began performing asset allocation services for the fund in 2006.

Morningstar serves as a Portfolio Construction Manager and, as such, makes asset allocation and underlying fund selection decisions for the fund.

The SAI provides additional information about the portfolio construction team’s compensation, other accounts managed by the portfolio construction team, and the portfolio construction team’s ownership of securities in the fund.

8

Transamerica Asset Allocation – Moderate Growth Portfolio

Summary of Risks and Returns

Objective

The objective of Transamerica Asset Allocation – Moderate Growth Portfolio is to seek capital appreciation with current income as a secondary objective.

Principal Strategies and Policies

The fund seeks to achieve its investment objective by investing its assets in a diversified combination of underlying Transamerica Funds (“underlying funds”).

n	Under normal market conditions, expectations are to adjust the investments in underlying funds to achieve a mix over time of approximately 70% of assets in equities and 30% of assets in fixed-income, which may include bonds, cash, cash equivalents and other money market instruments. These percentages may vary at different times.
n	Allocation of assets among the underlying funds is based on such things as prudent diversification principles, general market outlooks (both domestic and global), historical performance, global markets’ current valuations, and other global economic factors.
n	The fund may periodically adjust its allocations to favor investments in those underlying funds that it believes will provide the most favorable outlook for achieving its investment objective.
n	The fund may also invest directly in U.S. government securities and/or short-term commercial paper.

It is not possible to predict the extent to which the fund will be invested in a particular underlying fund at any time.

As a consequence of its investment strategies and policies, the fund may be a significant shareholder in certain underlying funds.

The fund’s portfolio construction manager, Morningstar Associates, LLC (the “Portfolio Construction Manager”), determines the fund’s asset allocations and periodic changes thereto, and other fund investments. The Portfolio Construction Manager may change the fund’s asset allocations and underlying funds at any time without notice to shareholders and without shareholder approval.

Please see Appendix A for more information about investment strategies.

List of Underlying Funds

This section lists the underlying funds in which the fund may invest; it is subject to change from time to time. For a summary of the respective investment objectives and principal investment strategies and risks of each underlying fund, please refer to Section B of this prospectus. Further information about an underlying fund is contained in that underlying fund’s prospectus, available at www.transamericafunds.com or by calling 1-888-233-4339.

n	Transamerica AllianceBernstein International Value
n	Transamerica American Century Large Company Value
n	Transamerica Balanced
n	Transamerica Bjurman, Barry Micro Emerging Growth
n	Transamerica BlackRock Global Allocation
n	Transamerica BlackRock Large Cap Value
n	Transamerica BlackRock Natural Resources
n	Transamerica BNY Mellon Market Neutral Strategy
n	Transamerica Clarion Global Real Estate Securities
n	Transamerica Convertible Securities
n	Transamerica Equity
n	Transamerica Evergreen Health Care
n	Transamerica Evergreen International Small Cap
n	Transamerica Federated Market Opportunity
n	Transamerica Flexible Income
n	Transamerica Growth Opportunities
n	Transamerica High Yield Bond
n	Transamerica Jennison Growth
n	Transamerica JPMorgan International Bond
n	Transamerica JPMorgan Mid Cap Value
n	Transamerica Legg Mason Partners Investors Value
n	Transamerica Loomis Sayles Bond
n	Transamerica MFS International Equity
n	Transamerica Marsico Growth
n	Transamerica Marsico International Growth
n	Transamerica Money Market
n	Transamerica Neuberger Berman International
n	Transamerica Oppenheimer Developing Markets
n	Transamerica Oppenheimer Small- & Mid-Cap Value
n	Transamerica PIMCO Real Return TIPS
n	Transamerica PIMCO Total Return
n	Transamerica Schroders International Small Cap
n	Transamerica Science & Technology
n	Transamerica Short-Term Bond
n	Transamerica Small/Mid Cap Value
n	Transamerica Third Avenue Value
n	Transamerica Thornburg International Value
n	Transamerica UBS Dynamic Alpha
n	Transamerica UBS Large Cap Value
n	Transamerica Value Balanced
n	Transamerica Van Kampen Emerging Markets Debt
n	Transamerica Van Kampen Mid-Cap Growth
n	Transamerica Van Kampen Small Company Growth
n	Transamerica WMC Emerging Markets

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the

9

Transamerica Asset Allocation – Moderate Growth Portfolio

value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Asset Allocation

The Portfolio Construction Manager allocates the fund’s assets among various underlying funds. These allocations may be unsuccessful in maximizing the fund’s return and/or avoiding investment losses.

n  Underlying Funds

Because the fund invests its assets in various underlying funds, its ability to achieve its investment objective depends largely on the performance of the underlying funds in which it invests. The fund is indirectly subject to all of the risks associated with an investment in the underlying funds, as described in this prospectus and the prospectuses of the underlying funds. There can be no assurance that the investment objective of any underlying fund will be achieved. In addition, the fund will bear a pro rata portion of the operating expenses of the underlying funds in which it invests, and it is subject to business and regulatory developments affecting the underlying funds.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

n   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Investment Companies

To the extent that an underlying fund invests in other investment companies such as Exchange-Traded Funds (“ETFs”), it bears its pro rata share of these investment companies’ expenses, and is subject to the effects of the business and regulatory developments that affect these investment companies and the investment company industry generally.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

10

Transamerica Asset Allocation – Moderate Growth Portfolio

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Dow Jones Wilshire 5000 Total Market Index (“Wilshire 5000 Index”), which tracks the returns of practically all publicly traded, U.S. headquartered stocks that trade on the major exchanges, and the Barclays Capital (formerly Lehman Brothers) U.S. Aggregate Index (“BCUSA Index”) (secondary), which covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. Each index is a widely recognized, unmanaged index of market performance. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	6/30/2003		13	.35%
Worst Quarter:	12/31/2008		(17	.63)%

Average Annual Total Returns as of 12/31/08¹

							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(36	.44)%		(1	.23)%		0	.14%
Return after taxes on distributions3		(37	.07)%		(2	.12)%		(0	.59)%
Return after taxes on distributions and sale of fund shares3		(23	.47)%		(1	.24)%		(0	.07)%
Class B (Return before taxes only)		(36	.41)%		(0	.92)%		0	.31%
Class C (Return before taxes only)		(33	.84)%		(0	.72)%		3	.44%
Class R (Return before taxes only)		(32	.84)%		N/A			(7	.85)%
Wilshire 5000 Index (reflects no deduction for fees, expenses or taxes)		(37	.33)%		(1	.67)%		(0	.14)%
BCUSA Index (secondary) (reflects no deduction for fees, expenses or taxes)		5	.24%		4	.65%		5	.21%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class B commenced operations on March 1, 2002. Class C commenced operations on November 11, 2002. Class R commenced operations on June 15, 2006.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder fees (fees paid directly from your investment)
	Class of Shares
	A			B			C			R
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c		None
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C			R
Management fees		0	.10%		0	.10%		0	.10%		0	.10%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%		0	.50%
Other expenses		0	.15%		0	.17%		0	.13%		0	.16%
Acquired Fund Fees and Expenses (fees and expenses of underlying funds)		0	.88%		0	.88%		0	.88%		0	.88%
Total annual fund operating expensesf		1	.48%		2	.15%		2	.11%		1	.64%
Expense reductione		0	.00%		0	.00%		0	.00%		0	.00%
Net operating expensesf		1	.48%		2	.15%		2	.11%		1	.64%

^a  Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.

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Transamerica Asset Allocation – Moderate Growth Portfolio

b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008, restated to reflect deduction of distribution and service (“12b-1”) fees from the fund’s assets only, and not (in part) from the assets of the underlying funds.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses.
f	Fund operating expenses do not correlate to the ratios of expenses to average net assets in the financial highlights table, which do not include acquired (i.e., underlying) funds’ fees and expenses.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	692	$	992	$	1,314	$	2,221
B†	$	718	$	973	$	1,254	$	2,313
C	$	314	$	661	$	1,134	$	2,441
R	$	167	$	517	$	892	$	1,944
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	692	$	992	$	1,314	$	2,221
B†	$	218	$	673	$	1,154	$	2,313
C	$	214	$	661	$	1,134	$	2,441
R	$	167	$	517	$	892	$	1,944

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the annual rate of 0.10% of the fund’s average daily net assets.

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.10% of the fund’s average daily net assets.

Portfolio Construction Manager:

Morningstar Associates, LLC (“Morningstar”)
22 West Washington Street
Chicago, Illinois 60602

Portfolio Construction Manager Compensation:

The Portfolio Construction Manager receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.10% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Construction Team:

The fund is managed by the following portfolio construction team. In addition to this team, Morningstar utilizes a number of other internal asset allocation consultants that serve as an investment resource to the team. Prior to joining the portfolio construction team, Mr. Stout, Mr. Hale and Mr. McConnell served as asset allocation consultants since the fund’s inception; Mr. Kowara served as an asset allocation consultant since his return to Morningstar in 2004.

Michael Stout, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1993 as a research analyst covering closed-end funds. He moved to open-end fund coverage in early 1996, and in 1997 became a senior analyst and editor of stock-fund research. Mr. Stout was one of the founding members of Morningstar’s Institutional Investment Consulting Group, launched in 1998, and currently serves as a senior consultant. Prior to joining Morningstar, he was an investment consultant with A.G. Edwards & Sons and was an officer in the U.S. Air Force. He holds a B.A. from the Ohio State University, an M.B.A. from the University of Texas, and is a Chartered Financial Analyst. He began performing asset allocation services for the fund in 2006.

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Transamerica Asset Allocation – Moderate Growth Portfolio

Jon Hale, Ph.D., CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1995 as an analyst covering closed-end funds and began covering open-end funds the next year. As a fund analyst, Mr. Hale covered funds across the full range of investment categories. From 1998 to 2000, he helped launch Morningstar’s Institutional Investment Consulting Group and then joined the management team at Domini Social Investments, LLC. Mr. Hale then rejoined the consulting group at Morningstar in November 2001 as a senior consultant. Prior to joining Morningstar, he taught at several universities. Mr. Hale holds a B.A. with Honors from the University of Oklahoma, and a Ph.D. in political science from Indiana University. He began performing asset allocation services for the fund in 2006.

Jeff McConnell, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1997 as a fund analyst, specializing in domestic equity. Mr. McConnell also worked as a stock analyst in Morningstar’s Equities Analysis Group. Prior to joining Morningstar, he worked as an institutional consultant at SEI Corporation. Mr. McConnell holds a B.A. in economics from Michigan State University and an M.B.A. from DePaul University. He is a Chartered Financial Analyst and a member of the Investment Analysts Society of Chicago. He began performing asset allocation services for the fund in 2006.

Maciej Kowara, Ph.D., CFA, Co-Portfolio Manager and Research & Development Consultant of Morningstar. Mr. Kowara joined Morningstar in February 2004 as the head of Morningstar’s research and development and quantitative analysis efforts. Prior to that, he spent five years as an analyst at Deutsche Bank’s Scudder Investments group and prior to joining Deutsche Bank, was a senior mutual-fund analyst at Morningstar specializing in fixed-income funds. Mr. Kowara holds a B.A. from University of Toronto and a Ph.D. from Harvard University. He is a Chartered Financial Analyst and a member of the Investment Analysts Society of Chicago. He began performing asset allocation services for the fund in 2006.

Morningstar serves as a Portfolio Construction Manager and, as such, makes asset allocation and underlying fund selection decisions for the fund.

The SAI provides additional information about the portfolio construction team’s compensation, other accounts managed by the portfolio construction team, and the portfolio construction team’s ownership of securities in the fund.

13

Transamerica Asset Allocation – Moderate Portfolio

Summary of Risks and Returns

Objective

The objective of Transamerica Asset Allocation – Moderate Portfolio is to seek capital appreciation and current income.

Principal Strategies and Policies

The fund seeks its investment objective by investing its assets in a diversified combination of underlying Transamerica Funds (“underlying funds”).

n	Under normal market conditions, expectations are to adjust the investments in underlying funds to achieve a mix over time of approximately 50% of assets in equities and 50% of assets in fixed income, which may include bonds, cash, cash equivalents, and other money market instruments. These percentages may vary at different times.
n	Allocation of assets among the underlying funds is based on such things as prudent diversification principles, general market outlooks (both domestic and global), historical performance, global markets’ current valuations, and other global economic factors.
n	The fund may periodically adjust its allocations to favor investments in those underlying funds that it believes will provide the most favorable outlook for achieving its investment objective.
n	The fund may also invest directly in U.S. government securities and/or short-term commercial paper.

It is not possible to predict the extent to which the fund will be invested in a particular underlying fund at any time.

As a consequence of its investment strategies and policies, the fund may be a significant shareholder in certain underlying funds.

The fund’s portfolio construction manager, Morningstar Associates, LLC (the “Portfolio Construction Manager”), determines the fund’s asset allocations and periodic changes thereto, and other fund investments. The Portfolio Construction Manager may change the fund’s asset allocations and underlying funds at any time without notice to shareholders and without shareholder approval.

Please see Appendix A for more information about investment strategies.

List of Underlying Funds

This section lists the underlying funds in which the fund may invest; it is subject to change from time to time. For a summary of the respective investment objectives and principal investment strategies and risks of each underlying fund, please refer to Section B of this prospectus. Further information about an underlying fund is contained in that underlying fund’s prospectus, available at www.transamericafunds.com or by calling 1-888-233-4339.

n	Transamerica AllianceBernstein International Value
n	Transamerica American Century Large Company Value
n	Transamerica Balanced
n	Transamerica Bjurman, Barry Micro Emerging Growth
n	Transamerica BlackRock Global Allocation
n	Transamerica BlackRock Large Cap Value
n	Transamerica BlackRock Natural Resources
n	Transamerica BNY Mellon Market Neutral Strategy
n	Transamerica Clarion Global Real Estate Securities
n	Transamerica Convertible Securities
n	Transamerica Equity
n	Transamerica Evergreen Health Care
n	Transamerica Evergreen International Small Cap
n	Transamerica Federated Market Opportunity
n	Transamerica Flexible Income
n	Transamerica Growth Opportunities
n	Transamerica High Yield Bond
n	Transamerica Jennison Growth
n	Transamerica JPMorgan International Bond
n	Transamerica JPMorgan Mid Cap Value
n	Transamerica Legg Mason Partners Investors Value
n	Transamerica Loomis Sayles Bond
n	Transamerica MFS International Equity
n	Transamerica Marsico Growth
n	Transamerica Marsico International Growth
n	Transamerica Money Market
n	Transamerica Neuberger Berman International
n	Transamerica Oppenheimer Developing Markets
n	Transamerica Oppenheimer Small- & Mid-Cap Value
n	Transamerica PIMCO Real Return TIPS
n	Transamerica PIMCO Total Return
n	Transamerica Schroders International Small Cap
n	Transamerica Science & Technology
n	Transamerica Short-Term Bond
n	Transamerica Small/Mid Cap Value
n	Transamerica Third Avenue Value
n	Transamerica Thornburg International Value
n	Transamerica UBS Dynamic Alpha
n	Transamerica UBS Large Cap Value
n	Transamerica Value Balanced
n	Transamerica Van Kampen Emerging Markets Debt
n	Transamerica Van Kampen Mid-Cap Growth
n	Transamerica Van Kampen Small Company Growth
n	Transamerica WMC Emerging Markets

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse.

14

Transamerica Asset Allocation – Moderate Portfolio

Changes in market conditions will not have the same impact on all types of securities.

n  Asset Allocation

The Portfolio Construction Manager allocates the fund’s assets among various underlying funds. These allocations may be unsuccessful in maximizing the fund’s return and/or avoiding investment losses.

n  Underlying Funds

Because the fund invests its assets in various underlying funds, its ability to achieve its investment objective depends largely on the performance of the underlying funds in which it invests. The fund is indirectly subject to all of the risks associated with an investment in the underlying funds, as described in this prospectus and the prospectuses of the underlying funds. There can be no assurance that the investment objective of any underlying fund will be achieved. In addition, the fund will bear a pro rata portion of the operating expenses of the underlying funds in which it invests, and it is subject to business and regulatory developments affecting the underlying funds.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

n   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Investment Companies

To the extent that an underlying fund invests in other investment companies such as Exchange-Traded Funds (“ETFs”), it bears its pro rata share of these investment companies’ expenses, and is subject to the effects of the business and regulatory developments that affect these investment companies and the investment company industry generally.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

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Transamerica Asset Allocation – Moderate Portfolio

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Dow Jones Wilshire 5000 Total Market Index (“Wilshire 5000 Index”), which tracks the returns of practically all publicly traded, U.S. headquartered stocks that trade on the major exchanges, and the Barclays Capital (formerly Lehman Brothers) U.S. Aggregate Index (“BCUSA Index”) (secondary), which covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. Each index is a widely recognized, unmanaged index of market performance. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	6/30/2003		11	.74%
Worst Quarter:	12/31/2008		(13	.46)%

Average Annual Total Returns as of 12/31/08¹

							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(30	.42)%		(0	.33)%		1	.16%
Return after taxes on distributions3		(31	.39)%		(1	.51)%		0	.15%
Return after taxes on distributions and sale of fund shares3		(19	.61)%		(0	.68)%		0	.61%
Class B (Return before taxes only)		(30	.40)%		(0	.01)%		1	.32%
Class C (Return before taxes only)		(27	.55)%		0	.21%		3	.83%
Class R (Return before taxes only)		(26	.52)%		N/A			(5	.40)%
Wilshire 5000 Index (reflects no deduction for fees, expenses or taxes)		(37	.33)%		(1	.67)%		(0	.14)%
BCUSA Index (secondary) (reflects no deduction for fees, expenses or taxes)		5	.24%		4	.65%		5	.21%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class B commenced operations on March 1, 2002. Class C commenced operations on November 11, 2002. Class R commenced operations on June 15, 2006.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C			R
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c		None
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C			R
Management fees		0	.10%		0	.10%		0	.10%		0	.10%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%		0	.50%
Other expenses		0	.14%		0	.15%		0	.11%		0	.27%
Acquired Fund Fees and Expenses (fees and expenses of underlying funds)		0	.85%		0	.85%		0	.85%		0	.85%
Total annual fund operating expensesf		1	.44%		2	.10%		2	.06%		1	.72%
Expense reductione		0	.00%		0	.00%		0	.00%		0	.00%
Net operating expensesf		1	.44%		2	.10%		2	.06%		1	.72%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.

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Transamerica Asset Allocation – Moderate Portfolio

d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008, restated to reflect deduction of distribution and service (“12b-1”) fees from the fund’s assets only, and not (in part) from the assets of the underlying funds.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses.
f	Fund operating expenses do not correlate to the ratios of expenses to average net assets in the financial highlights table, which do not include acquired (i.e., underlying) funds’ fees and expenses.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	689	$	980	$	1,294	$	2,179
B†	$	713	$	958	$	1,229	$	2,263
C	$	309	$	646	$	1,108	$	2,390
R	$	175	$	542	$	933	$	2,030
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	689	$	980	$	1,294	$	2,179
B†	$	213	$	658	$	1,129	$	2,263
C	$	209	$	646	$	1,108	$	2,390
R	$	175	$	542	$	933	$	2,030

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the annual rate of 0.10% of the fund’s average daily net assets.

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.10% of the fund’s average daily net assets.

Portfolio Construction Manager:

Morningstar Associates, LLC (“Morningstar”)
22 West Washington Street
Chicago, Illinois 60602

Portfolio Construction Manager Compensation:

The Portfolio Construction Manager receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.10% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Construction Team:

The fund is managed by the following portfolio construction team. In addition to this team, Morningstar utilizes a number of other internal asset allocation consultants that serve as an investment resource to the team. Prior to joining the portfolio construction team, Mr. Stout, Mr. Hale and Mr. McConnell served as asset allocation consultants since the fund’s inception; Mr. Kowara served as an asset allocation consultant since his return to Morningstar in 2004.

Michael Stout, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1993 as a research analyst covering closed-end funds. He moved to open-end fund coverage in early 1996, and in 1997 became a senior analyst and editor of stock-fund research. Mr. Stout was one of the founding members of Morningstar’s Institutional Investment Consulting Group, launched in 1998, and currently serves as a senior consultant. Prior to joining Morningstar, he was an investment consultant with A.G. Edwards & Sons and was an officer in the U.S. Air Force. He holds a B.A. from the Ohio State University, an M.B.A. from the University of Texas, and is a Chartered Financial Analyst. He began performing asset allocation services for the fund in 2006.

Jon Hale, Ph.D., CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1995 as an analyst covering closed-end funds and began covering open-end funds the next year. As a fund analyst, Mr. Hale covered funds across the full range of investment categories. From 1998 to 2000, he helped launch Morningstar’s Institutional Investment Consulting Group and then joined the management team at Domini Social Investments, LLC. Mr. Hale then rejoined the consulting group at Morningstar in November 2001 as a senior consultant. Prior to joining Morningstar, he taught at several universities. Mr. Hale holds a B.A. with Honors from the University of Oklahoma, and a Ph.D. in political science from Indiana University. He began performing asset allocation services for the fund in 2006.

17

Transamerica Asset Allocation – Moderate Portfolio

Jeff McConnell, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1997 as a fund analyst, specializing in domestic equity. Mr. McConnell also worked as a stock analyst in Morningstar’s Equities Analysis Group. Prior to joining Morningstar, he worked as an institutional consultant at SEI Corporation. Mr. McConnell holds a B.A. in economics from Michigan State University and an M.B.A. from DePaul University. He is a Chartered Financial Analyst and a member of the Investment Analysts Society of Chicago. He began performing asset allocation services for the fund in 2006.

Maciej Kowara, Ph.D., CFA, Co-Portfolio Manager and Research & Development Consultant of Morningstar. Mr. Kowara joined Morningstar in February 2004 as the head of Morningstar’s research and development and quantitative analysis efforts. Prior to that, he spent five years as an analyst at Deutsche Bank’s Scudder Investments group and prior to joining Deutsche Bank, was a senior mutual-fund analyst at Morningstar specializing in fixed-income funds. Mr. Kowara holds a B.A. from University of Toronto and a Ph.D. from Harvard University. He is a Chartered Financial Analyst and a member of the Investment Analysts Society of Chicago. He began performing asset allocation services for the fund in 2006.

Morningstar serves as a Portfolio Construction Manager and, as such, makes asset allocation and underlying fund selection decisions for the fund.

The SAI provides additional information about the portfolio construction team’s compensation, other accounts managed by the portfolio construction team, and the portfolio construction team’s ownership of securities in the fund.

18

Transamerica Asset Allocation – Conservative Portfolio

Summary of Risks and Returns

Objective

The objective of Transamerica Asset Allocation – Conservative Portfolio is to seek current income and preservation of capital.

Principal Strategies and Policies

The fund seeks to achieve its investment objective by investing its assets in a diversified combination of underlying Transamerica Funds (“underlying funds”).

n	Under normal market conditions, expectations are to adjust the investments in underlying funds to achieve a mix over time of approximately 35% of assets in equities and 65% of assets in fixed-income, which may include bonds, cash, cash equivalents, and other money market instruments. These percentages may vary at different times.
n	Allocation of assets among the underlying funds is based on such things as prudent diversification principles, general market outlooks (both domestic and global), historical performance, global markets’ current valuations, and other global economic factors.
n	The fund may periodically adjust its allocations to favor investments in those underlying funds that it believes will provide the most favorable outlook for achieving its investment objective.
n	The fund may also invest directly in U.S. government securities and/or short-term commercial paper.

It is not possible to predict the extent to which the fund will be invested in a particular underlying fund at any time.

As a consequence of its investment strategies and policies, the fund may be a significant shareholder in certain underlying funds.

The fund’s portfolio construction manager, Morningstar Associates, LLC (the “Portfolio Construction Manager”), determines the fund’s asset allocations and periodic changes thereto, and other fund investments. The Portfolio Construction Manager may change the fund’s asset allocations and underlying funds at any time without notice to shareholders and without shareholder approval.

Please see Appendix A for more information about investment strategies.

List of Underlying Funds

This section lists the underlying funds in which the fund may invest; it is subject to change from time to time. For a summary of the respective investment objectives and principal investment strategies and risks of each underlying fund, please refer to Section B of this prospectus. Further information about an underlying fund is contained in that underlying fund’s prospectus, available at www.transamericafunds.com or by calling 1-888-233-4339.

n	Transamerica AllianceBernstein International Value
n	Transamerica American Century Large Company Value
n	Transamerica Balanced
n	Transamerica Bjurman, Barry Micro Emerging Growth
n	Transamerica BlackRock Global Allocation
n	Transamerica BlackRock Large Cap Value
n	Transamerica BlackRock Natural Resources
n	Transamerica BNY Mellon Market Neutral Strategy
n	Transamerica Clarion Global Real Estate Securities
n	Transamerica Convertible Securities
n	Transamerica Equity
n	Transamerica Evergreen Health Care
n	Transamerica Evergreen International Small Cap
n	Transamerica Federated Market Opportunity
n	Transamerica Flexible Income
n	Transamerica Growth Opportunities
n	Transamerica High Yield Bond
n	Transamerica Jennison Growth
n	Transamerica JPMorgan International Bond
n	Transamerica JPMorgan Mid Cap Value
n	Transamerica Legg Mason Partners Investors Value
n	Transamerica Loomis Sayles Bond
n	Transamerica MFS International Equity
n	Transamerica Marsico Growth
n	Transamerica Marsico International Growth
n	Transamerica Money Market
n	Transamerica Neuberger Berman International
n	Transamerica Oppenheimer Developing Markets
n	Transamerica Oppenheimer Small- & Mid-Cap Value
n	Transamerica PIMCO Real Return TIPS
n	Transamerica PIMCO Total Return
n	Transamerica Schroders International Small Cap
n	Transamerica Science & Technology
n	Transamerica Short-Term Bond
n	Transamerica Small/Mid Cap Value
n	Transamerica Third Avenue Value
n	Transamerica Thornburg International Value
n	Transamerica Value Balanced
n	Transamerica UBS Dynamic Alpha
n	Transamerica UBS Large Cap Value
n	Transamerica Van Kampen Emerging Markets Debt
n	Transamerica Van Kampen Mid-Cap Growth
n	Transamerica Van Kampen Small Company Growth
n	Transamerica WMC Emerging Markets

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the

19

Transamerica Asset Allocation – Conservative Portfolio

value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Asset Allocation

The Portfolio Construction Manager allocates the fund’s assets among various underlying funds. These allocations may be unsuccessful in maximizing the fund’s return and/or avoiding investment losses.

n  Underlying Funds

Because the fund invests its assets in various underlying funds, its ability to achieve its investment objective depends largely on the performance of the underlying funds in which it invests. The fund is indirectly subject to all of the risks associated with an investment in the underlying funds, as described in this prospectus and the prospectuses of the underlying funds. There can be no assurance that the investment objective of any underlying fund will be achieved. In addition, the fund will bear a pro rata portion of the operating expenses of the underlying funds in which it invests, and it is subject to business and regulatory developments affecting the underlying funds.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

n   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Investment Companies

To the extent that an underlying fund invests in other investment companies such as Exchange-Traded Funds (“ETFs”), it bears its pro rata share of these investment companies’ expenses, and is subject to the effects of the business and regulatory developments that affect these investment companies and the investment company industry generally.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

20

Transamerica Asset Allocation – Conservative Portfolio

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Barclays Capital (formerly Lehman Brothers) U.S. Aggregate Index (“BCUSA Index”), which covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities, and the Dow Jones Wilshire 5000 Total Market Index (“Wilshire 5000 Index”) (secondary), which tracks the returns of practically all publicly traded, U.S. headquartered stocks that trade on the major exchanges. Each index is a widely recognized, unmanaged index of market performance. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	6/30/2003		9	.83%
Worst Quarter:	12/31/2008		(10	.98)%

Average Annual Total Returns as of 12/31/08¹

							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(26	.01)%		(0	.09)%		1	.79%
Return after taxes on distributions3		(27	.15)%		(1	.57)%		0	.49%
Return after taxes on distributions and sale of fund shares3		(16	.77)%		(0	.67)%		0	.96%
Class B (Return before taxes only)		(25	.89)%		0	.24%		1	.96%
Class C (Return before taxes only)		(22	.84)%		0	.42%		3	.63%
Class R (Return before taxes only)		(21	.70)%		N/A			(3	.84)%
BCUSA Index (reflects no deduction for fees, expenses or taxes)		5	.24%		4	.65%		5	.21%
Wilshire 5000 Index (secondary) (reflects no deduction for fees, expenses or taxes)		(37	.33)%		(1	.67)%		(0	.14)%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class B commenced operations on March 1, 2002. Class C commenced operations on November 11, 2002. Class R commenced operations on June 15, 2006.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C			R
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c		None
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C			R
Management fees		0	.10%		0	.10%		0	.10%		0	.10%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%		0	.50%
Other expenses		0	.17%		0	.14%		0	.12%		0	.22%
Acquired Fund Fees and Expenses (fees and expenses of underlying funds)		0	.81%		0	.81%		0	.81%		0	.81%
Total annual fund operating expensesf		1	.43%		2	.05%		2	.03%		1	.63%
Expense reductione		0	.00%		0	.00%		0	.00%		0	.00%
Net operating expensesf		1	.43%		2	.05%		2	.03%		1	.63%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).

21

Transamerica Asset Allocation – Conservative Portfolio

c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008, restated to reflect deduction of distribution and service (“12b-1”) fees from the fund’s assets only, and not (in part) from the assets of the underlying funds.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses.
f	Fund operating expenses do not correlate to the ratios of expenses to average net assets in the financial highlights table, which do not include acquired (i.e., underlying) funds’ fees and expenses.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	688	$	978	$	1,289	$	2,169
B†	$	708	$	943	$	1,203	$	2,220
C	$	306	$	637	$	1,093	$	2,358
R	$	166	$	514	$	887	$	1,933
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	688	$	978	$	1,289	$	2,169
B†	$	208	$	643	$	1,103	$	2,220
C	$	206	$	637	$	1,093	$	2,358
R	$	166	$	514	$	887	$	1,933

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the annual rate of 0.10% of the fund’s average daily net assets.

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.10% of the fund’s average daily net assets.

Portfolio Construction Manager:

Morningstar Associates, LLC (“Morningstar”)
22 West Washington Street
Chicago, Illinois 60602

Portfolio Construction Manager Compensation:

The Portfolio Construction Manager receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.10% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Construction Team:

The fund is managed by the following portfolio construction team. In addition to this team, Morningstar utilizes a number of other internal asset allocation consultants that serve as an investment resource to the team. Prior to joining the portfolio construction team, Mr. Stout, Mr. Hale and Mr. McConnell served as asset allocation consultants since the fund’s inception; Mr. Kowara served as an asset allocation consultant since his return to Morningstar in 2004.

Michael Stout, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1993 as a research analyst covering closed-end funds. He moved to open-end fund coverage in early 1996, and in 1997 became a senior analyst and editor of stock-fund research. Mr. Stout was one of the founding members of Morningstar’s Institutional Investment Consulting Group, launched in 1998, and currently serves as a senior consultant. Prior to joining Morningstar, he was an investment consultant with A.G. Edwards & Sons and was an officer in the U.S. Air Force. He holds a B.A. from the Ohio State University, an M.B.A. from the University of Texas, and is a Chartered Financial Analyst. He began performing asset allocation services for the fund in 2006.

22

Transamerica Asset Allocation – Conservative Portfolio

Jon Hale, Ph.D., CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1995 as an analyst covering closed-end funds and began covering open-end funds the next year. As a fund analyst, Mr. Hale covered funds across the full range of investment categories. From 1998 to 2000, he helped launch Morningstar’s Institutional Investment Consulting Group and then joined the management team at Domini Social Investments, LLC. Mr. Hale then rejoined the consulting group at Morningstar in November 2001 as a senior consultant. Prior to joining Morningstar, he taught at several universities. Mr. Hale holds a B.A. with Honors from the University of Oklahoma, and a Ph.D. in political science from Indiana University. He began performing asset allocation services for the fund in 2006.

Jeff McConnell, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1997 as a fund analyst, specializing in domestic equity. Mr. McConnell also worked as a stock analyst in Morningstar’s Equities Analysis Group. Prior to joining Morningstar, he worked as an institutional consultant at SEI Corporation. Mr. McConnell holds a B.A. in economics from Michigan State University and an M.B.A. from DePaul University. He is a Chartered Financial Analyst and a member of the Investment Analysts Society of Chicago. He began performing asset allocation services for the fund in 2006.

Maciej Kowara, Ph.D., CFA, Co-Portfolio Manager and Research & Development Consultant of Morningstar. Mr. Kowara joined Morningstar in February 2004 as the head of Morningstar’s research and development and quantitative analysis efforts. Prior to that, he spent five years as an analyst at Deutsche Bank’s Scudder Investments group and prior to joining Deutsche Bank, was a senior mutual-fund analyst at Morningstar specializing in fixed-income funds. Mr. Kowara holds a B.A. from University of Toronto and a Ph.D. from Harvard University. He is a Chartered Financial Analyst and a member of the Investment Analysts Society of Chicago. He began performing asset allocation services for the fund in 2006.

Morningstar serves as a Portfolio Construction Manager and, as such, makes asset allocation and underlying fund selection decisions for the fund.

The SAI provides additional information about the portfolio construction team’s compensation, other accounts managed by the portfolio construction team, and the portfolio construction team’s ownership of securities in the fund.

23

Transamerica Multi-Manager Alternative Strategies Portfolio

Summary of Risks and Returns

Objective

The investment objective of Transamerica Multi-Manager Alternative Strategies Portfolio is to seek long-term capital appreciation.

Principal Strategies and Policies

The fund seeks to achieve its investment objective by investing its assets in a diversified combination of underlying Transamerica Funds (“underlying funds”).

n   Under normal market conditions, the fund expects to invest primarily in underlying funds that use alternative investment strategies and invest in alternative asset classes, including but not limited to:

n	Long-short and market neutral strategies;
n	Bear-market strategies;
n	Tactical investment strategies (bond and/or equity);
n	Foreign currency trading strategies;
n	Real estate securities;
n	Commodities and/or natural resources and/or precious metals; and
n	Non-traditional investments (such as micro-cap stocks and emerging market equities).

n	Allocation of assets among the underlying funds is intended to achieve moderate capital appreciation with limited volatility and correlation with the mainstream equity and bond markets.
n	The fund seeks to periodically and gradually adjust its allocations to favor investments in those underlying funds that are expected to provide the most favorable outlook for achieving its investment objective.
n	The fund may also invest directly in U.S. government securities and/or short-term commercial paper.

It is not possible to predict the extent to which the fund will be invested in a particular underlying fund at any time.

As a consequence of its investment strategies and policies, the fund may be a significant shareholder in certain underlying funds.

The fund’s portfolio construction manager, Morningstar Associates, LLC (the “Portfolio Construction Manager”), determines the fund’s asset allocations and periodic changes thereto, and other fund investments. The Portfolio Construction Manager may change the fund’s asset allocations and underlying funds at any time without notice to shareholders, and without shareholder approval.

Please see Appendix A for more information about investment strategies.

List of Underlying Funds

This section lists the underlying funds in which the fund may invest; it is subject to change from time to time. For a summary of the respective investment objectives and principal investment strategies and risks of each underlying fund, please refer to Section B of this prospectus. Further information about an underlying fund is contained in that underlying fund’s prospectus, available at www.transamericafunds.com or by calling 1-888-233-4339.

n	Transamerica Bjurman, Barry Micro Emerging Growth
n	Transamerica BlackRock Global Allocation
n	Transamerica BlackRock Natural Resources
n	Transamerica BNY Mellon Market Neutral Strategy
n	Transamerica Clarion Global Real Estate Securities
n	Transamerica Evergreen International Small Cap
n	Transamerica Federated Market Opportunity
n	Transamerica JPMorgan International Bond
n	Transamerica Loomis Sayles Bond
n	Transamerica Money Market
n	Transamerica Oppenheimer Developing Markets
n	Transamerica Schroders International Small Cap

n   Transamerica Third Avenue Value

n	Transamerica UBS Dynamic Alpha
n	Transamerica WMC Emerging Markets

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be

24

Transamerica Multi-Manager Alternative Strategies Portfolio

subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

n  Real Estate Securities

Real estate markets have been particularly affected by the financial crisis. Investments in the real estate industry are subject to risks associated with direct investment in real estate. These risks may include, without limitation:

n   declining real estate value

n   risks relating to general and local economic conditions

n   over-building

n   increased competition for assets in local and regional markets

n   increases in property taxes

n   increases in operating expenses or interest rates

n   change in neighborhood value or the appeal of properties to tenants

n   insufficient levels of occupancy

n   inadequate rents to cover operating expenses

The performance of securities issued by companies in the real estate industry also may be affected by prudent management of insurance risks, adequacy of financing available in capital markets, competent management, changes in applicable laws and government regulations (including taxes) and social and economic trends.

n  Asset Allocation

The Portfolio Construction Manager allocates the fund’s assets among various underlying funds. These allocations may be unsuccessful in maximizing the fund’s return and/or avoiding investment losses.

n  Underlying Funds

Because the fund invests its assets in various underlying funds, its ability to achieve its investment objective depends largely on the performance of the underlying funds in which it invests. The fund is indirectly subject to all of the risks associated with an investment in the underlying funds, as described in this prospectus and the prospectuses of the underlying funds. There can be no assurance that the investment objective of any underlying fund will be achieved. In addition, the fund will bear a pro rata portion of the operating expenses of the underlying funds in which it invests, and it is subject to business and regulatory developments affecting the underlying funds.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Investment Companies

To the extent that an underlying fund invests in other investment companies such as Exchange-Traded Funds (“ETFs”), it bears its pro rata share of these investment companies’ expenses, and is subject to the effects of the business and regulatory developments that affect these investment companies and the investment company industry generally.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n	prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities
n	extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

25

Transamerica Multi-Manager Alternative Strategies Portfolio

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks,” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Merrill Lynch 3-Month Treasury Bill + 3% Wrap Index (“ML 3-Month T-Bill Index”), a widely recognized, unmanaged index of market performance that comprises U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	9/30/2007		3	.12%
Worst Quarter:	12/31/2008		(10	.35)%

Average Annual Total Returns as of 12/31/08¹

				Life of
	1 Year			Fund2
Class A
Return before taxes		(23	.56)%		(9	.98)%
Return after taxes on distributions3		(24	.29)%		(10	.79)%
Return after taxes on distributions and sale of fund shares3		(15	.03)%		(8	.77)%
Class C (Return before taxes only)		(20	.36)%		(7	.98)%
ML 3-Month T-Bill Index (reflects no deduction for fees, expenses or taxes)		5	.16%		6	.67%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.
2	The fund commenced operations on December 28, 2006.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			1	..00%b
Annual Fund Operating Expenses (expenses that are deducted from fund assets)c
	Class of Shares
	A			C
Management fees		0	.20%		0	.20%
Distribution and service (12b-1) fees		0	.35%		1	.00%
Other expenses		0	.22%		0	.23%
Acquired Fund Fees and Expenses (fees and expenses of underlying funds)		1	.09%		1	.09%
Total annual fund operating expensese		1	.86%		2	.52%
Expense reductiond		0	.00%		0	.00%
Net operating expensese		1	.86%		2	.52%

26

Transamerica Multi-Manager Alternative Strategies Portfolio

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
c	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008, restated to reflect deduction of distribution and service (“12b-1”) fees from the fund’s assets only, and not (in part) from the assets of the underlying funds.

^d  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent such expenses exceed 0.55%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.55%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses.

^e  Fund operating expenses do not correlate to the ratios of expenses to average net assets in the financial highlights table, which do not include acquired (i.e., underlying) funds’ fees and expenses.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	729	$	1,103	$	1,501	$	2,610
C	$	355	$	785	$	1,340	$	2,856
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	729	$	1,103	$	1,501	$	2,610
C	$	255	$	785	$	1,340	$	2,856

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $500 million	0.20%
Over $500 million up to $1 billion	0.19%
Over $1 billion	0.18%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.20% of the fund’s average daily net assets.

Portfolio Construction Manager:

Morningstar Associates, LLC (“Morningstar”)
22 West Washington Street
Chicago, Illinois 60602

Portfolio Construction Manager Compensation:

The Portfolio Construction Manager receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $500 million	0.20%
Over $500 million up to $1 billion	0.19%
Over $1 billion	0.18%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Construction Team:

The fund is managed by the following portfolio construction team. In addition to this team, Morningstar utilizes a number of asset allocation consultants that serve as an investment resource to the team.

Michael Stout, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1993 as a research analyst covering closed-end funds. He moved to open-end fund coverage in early 1996, and in 1997 became a senior analyst and editor of stock-fund research. Mr. Stout was one of the founding members of Morningstar’s Institutional Investment Consulting Group, launched in 1998, and currently serves as a senior consultant. Prior to joining Morningstar, he was an investment consultant with A.G. Edwards & Sons and was an officer in the U.S. Air Force. He holds a B.A. from the Ohio State University and an M.B.A. from the University of Texas. He has performed asset allocation services for the fund since its inception in December 2006.

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Transamerica Multi-Manager Alternative Strategies Portfolio

Jon Hale, Ph.D., CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1995 as an analyst covering closed-end funds, and began covering open-end funds the next year. As a fund analyst, Mr. Hale covered funds across the full range of investment categories. From 1998 to 2000, he helped launch Morningstar’s Institutional Investment Consulting Group, and then joined the management team at Domini Social Investments, LLC. Mr. Hale then rejoined the consulting group at Morningstar in November 2001 as a senior consultant. Prior to joining Morningstar, he taught at several universities. Mr. Hale has a B.A. with Honors from the University of Oklahoma, and a Ph.D. in political science from Indiana University. He has performed asset allocation services for the fund since its inception in December 2006.

Jeff McConnell, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1997 as a fund analyst, specializing in domestic equity. Mr. McConnell also worked as a stock analyst in Morningstar’s Equities Analysis Group. Prior to joining Morningstar, he worked as an institutional consultant at SEI Corporation. Mr. McConnell holds a B.A. in economics from Michigan State University and an M.B.A. from DePaul University. He is a member of the Investment Analysts Society of Chicago. He has performed asset allocation services for the fund since its inception in December 2006.

Maciej Kowara, Ph.D., CFA, Co-Portfolio Manager, and Research & Development Consultant of Morningstar. Mr. Kowara joined Morningstar in February 2004 as the head of Morningstar’s research and development and quantitative analysis efforts. Prior to that, he spent five years as an analyst at Deutsche Bank’s Scudder Investments group and prior to joining Deutsche Bank, was a senior mutual-fund analyst at Morningstar specializing in fixed-income funds. Mr. Kowara holds a B.A. from University of Toronto and a Ph.D. from Harvard University. He is a member of the Investment Analysts Society of Chicago. He has performed asset allocation services for the fund since its inception in December 2006.

Morningstar serves as a Portfolio Construction Manager and, as such, makes asset allocation and underlying fund selection decisions for the fund.

The SAI provides additional information about the portfolio construction team’s compensation, other accounts managed by the portfolio construction team and the portfolio construction team’s ownership of securities in the fund.

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Transamerica Multi-Manager International Portfolio

Summary of Risks and Returns

Objective

The investment objective of Transamerica Multi-Manager International Portfolio is long-term capital appreciation.

Principal Strategies and Policies

The fund seeks to achieve its investment objective by investing its assets in a diversified combination of underlying Transamerica Funds (“underlying funds”).

In seeking to achieve its investment objective, the fund follows the following investment strategies:

n	Under normal market conditions, the fund expects to invest primarily in underlying funds that invest primarily in international (developed and emerging markets) equities. The underlying funds generally expect to be invested in more than three different countries.
n	Allocation of assets among the underlying funds is based on such things as prudent diversification principles, general market outlooks (both domestic and global), historical performance, global markets’ current valuations, and other global economic factors.
n	The fund seeks to periodically adjust its allocations to favor investments in those underlying funds that it believes will provide the most favorable outlook for achieving its investment objective.
n	The fund may also invest directly in U.S. government securities and/or short-term commercial paper.

It is not possible to predict the extent to which the fund will be invested in a particular underlying fund at any time.

As a consequence of its investment strategies and policies, the fund may be a significant shareholder in certain underlying funds.

The fund’s portfolio construction manager, Morningstar Associates, LLC (the “Portfolio Construction Manager”), determines the fund’s asset allocations and periodic changes thereto, and other fund investments. The Portfolio Construction Manager may change the fund’s asset allocations and underlying funds at any time without notice to shareholders and without shareholder approval.

Please see Appendix A for more information about investment strategies.

List of Underlying Funds

This section lists the underlying funds in which the fund may invest; it is subject to change from time to time. For a summary of the respective investment objectives and principal investment strategies and risks of each underlying fund, please refer to Section B of this prospectus. Further information about an underlying fund is contained in that underlying fund’s prospectus, available at www.transamericafunds.com or by calling 1-888-233-4339.

n	Transamerica AllianceBernstein International Value
n	Transamerica BlackRock Global Allocation
n	Transamerica Clarion Global Real Estate Securities
n	Transamerica Evergreen International Small Cap
n	Transamerica Federated Market Opportunity
n	Transamerica MFS International Equity
n	Transamerica Marsico International Growth
n	Transamerica Neuberger Berman International
n	Transamerica Oppenheimer Developing Markets
n	Transamerica Schroders International Small Cap
n	Transamerica Thornburg International Value
n	Transamerica UBS Dynamic Alpha

n   Transamerica WMC Emerging Markets

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Asset Allocation

The Portfolio Construction Manager allocates the fund’s assets among various underlying funds. These allocations may be unsuccessful in maximizing the fund’s return and/or avoiding investment losses.

n  Underlying Funds

Because the fund invests its assets in various underlying funds, its ability to achieve its investment objective depends largely on the performance of the underlying funds in which it invests. The fund is indirectly subject to all of the risks associated with an investment in the underlying funds, as described in this prospectus and the prospectuses of the underlying funds. There can be no assurance that the investment objective of any underlying fund will be achieved. In addition, the fund will bear a pro rata portion of the operating expenses of the underlying funds in which it invests, and it is subject to business and regulatory developments affecting the underlying funds.

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Transamerica Multi-Manager International Portfolio

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n	prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities
n	extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Investment Companies

To the extent that an underlying fund invests in other investment companies such as Exchange-Traded Funds (“ETFs”), it bears its pro rata share of these investment companies’ expenses, and is subject to the effects of the business and regulatory developments that affect these investment companies and the investment company industry generally.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks,” in Appendix A of this prospectus.

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Transamerica Multi-Manager International Portfolio

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the return of a broad measure of market performance, the Morgan Stanley Capital International World ex-U.S. Index (“MSCIW ex-U.S. Index”), a widely recognized, unmanaged index of market performance made up of equities from over 20 countries, excluding the United States. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	6/30/2007		7	.71%
Worst Quarter:	12/31/2008		(22	.43)%

Average Annual Total Returns (as of 12/31/08)¹

				Life of
	1 Year			Fund2
Class A
Return before taxes		(48	.12)%		(12	.98)%
Return after taxes on distributions3		(48	.20)%		(13	.60)%
Return after taxes on distributions and sale of fund shares3		(31	.22)%		(10	.79)%
Class B (Return before taxes only)		(48	.25)%		(12	.73)%
Class C (Return before taxes only)		(46	.03)%		(11	.81)%
MSCIW ex-U.S. Index (reflects no deduction for fees, expenses or taxes)		(43	.23)%		(9	.07)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After tax returns are presented for only one class and returns for other classes will vary.
2	The fund commenced operations on March 1, 2006.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c
Annual Fund Operating Expenses (expenses that are deducted from Fund assets)d
	Class of Shares
	A			B			C
Management fees		0	.10%		0	.10%		0	.10%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.20%		0	.32%		0	.21%
Acquired Fund Fees and Expenses (fees and expenses of underlying funds)		1	.10%		1	.10%		1	.10%
Total annual fund operating expensesf		1	.75%		2	.52%		2	.41%
Expense reductione		0	.00%		0	.00%		0	.00%
Net operating expensesf		1	.75%		2	.52%		2	.41%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008, restated to reflect deduction of distribution and service (“12b-1”) fees from the fund’s assets only, and not (in part) from the assets of the underlying funds.

^e  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent such expenses exceed 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annual operating expenses are less than 0.45%, excluding 12b-1 fees, extraordinary expenses and acquired (i.e., underlying) funds’ fees and expenses. This fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

^f  Fund operating expenses do not correlate to the ratios of expenses to average net assets in the financial highlights table, which do not include acquired (i.e., underlying) funds’ fees and expenses.

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Transamerica Multi-Manager International Portfolio

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	718	$	1,071	$	1,447	$	2,499
B†	$	755	$	1,085	$	1,440	$	2,667
C	$	344	$	751	$	1,285	$	2,746
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	718	$	1,071	$	1,447	$	2,499
B†	$	255	$	785	$	1,340	$	2,667
C	$	244	$	751	$	1,285	$	2,746

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the annual rate of 0.10% of the fund’s average daily net assets.

For the fiscal year ended October 31, 2008, the fund paid 0.10% of the fund’s average daily net assets.

Portfolio Construction Manager:

Morningstar Associates, LLC (“Morningstar”)
22 West Washington Street
Chicago, Illinois 60602

Portfolio Construction Manager Compensation:

The Portfolio Construction Manager receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.10% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Construction Team:

The fund is managed by the following portfolio construction team. In addition to this team, Morningstar utilizes a number of other internal asset allocation consultants that serve as an investment resource to the team. Prior to joining the portfolio construction team, Mr. Stout, Mr. Hale, Mr. McConnell, and Mr. Kowara served as asset allocation consultants since the fund’s inception.

Michael Stout, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1993 as a research analyst covering closed-end funds. He moved to open-end fund coverage in early 1996, and in 1997 became a senior analyst and editor of stock-fund research. Mr. Stout was one of the founding members of Morningstar’s Institutional Investment Consulting Group, launched in 1998, and currently serves as a senior consultant. Prior to joining Morningstar, he was an investment consultant with A.G. Edwards & Sons and was an officer in the U.S. Air Force. He holds a B.A. from the Ohio State University, an M.B.A. from the University of Texas, and is a Chartered Financial Analyst. He has performed asset allocation services for the fund since August 2006.

Jon Hale, Ph.D., CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1995 as an analyst covering closed-end funds and began covering open-end funds the next year. As a fund analyst, Mr. Hale covered funds across the full range of investment categories. From 1998 to 2000, he helped launch Morningstar’s Institutional Investment Consulting Group and then joined the management team at Domini Social Investments, LLC. Mr. Hale then rejoined the consulting group at Morningstar in November 2001 as a senior consultant. Prior to joining Morningstar, he taught at several universities. Mr. Hale holds a B.A. with Honors from the University of Oklahoma, and a Ph.D. in political science from Indiana University. He has performed asset allocation services for the fund since August 2006.

Jeff McConnell, CFA, Co-Portfolio Manager, is a Senior Consultant at Morningstar and joined Morningstar in 1997 as a fund analyst, specializing in domestic equity. Mr. McConnell also worked as a stock analyst in Morningstar’s Equities Analysis Group. Prior to joining Morningstar, he worked as an institutional consultant at SEI Corporation. Mr. McConnell holds a B.A. in economics from Michigan State University and an M.B.A. from DePaul University. He is a Chartered Financial Analyst and a member of the Investment Analysts Society of Chicago. He has performed asset allocation services for the fund since August 2006.

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Transamerica Multi-Manager International Portfolio

Maciej Kowara, Ph.D., CFA, Co-Portfolio Manager and Research & Development Consultant of Morningstar. Mr. Kowara joined Morningstar in February 2004 as the head of Morningstar’s research and development and quantitative analysis efforts. Prior to that, he spent five years as an analyst at Deutsche Bank’s Scudder Investments group and prior to joining Deutsche Bank, was a senior mutual-fund analyst at Morningstar specializing in fixed-income funds. Mr. Kowara holds a B.A. from University of Toronto and a Ph.D. from Harvard University. He is a Chartered Financial Analyst and a member of the Investment Analysts Society of Chicago. He has performed asset allocation services for the fund since August 2006.

Morningstar serves as a Portfolio Construction Manager and, as such, makes asset allocation and underlying fund selection decisions for the fund.

The SAI provides additional information about the portfolio construction team’s compensation, other accounts managed by the portfolio construction team, and the portfolio construction team’s ownership of securities in the fund.

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Transamerica Legg Mason Partners All Cap

Summary of Risks and Returns

Objective

The investment objective of Transamerica Legg Mason Partners All Cap is to seek capital appreciation.

Principal Strategies and Policies

The fund’s sub-adviser, ClearBridge Advisors, LLC (“ClearBridge”), seeks to achieve this objective by investing fund assets principally in common stocks and common stock equivalents, such as preferred stocks and securities convertible into common stocks, of companies ClearBridge believes are undervalued in the marketplace. While ClearBridge selects investments primarily for their capital appreciation potential, secondary consideration is given to a company’s dividend record and the potential for an improved dividend return. The fund generally invests in securities of large, well-known companies but may also invest a significant portion of its assets in securities of small- to medium-sized companies when ClearBridge believes smaller companies offer more attractive value opportunities. The fund may invest in non-dividend paying stocks.

ClearBridge employs a two-step stock selection process in its search for undervalued stocks of temporarily out-of-favor companies. First, ClearBridge uses proprietary models and fundamental research to try to identify stocks that are underpriced in the market relative to their fundamental value. Next, it looks for a positive catalyst in the company’s near term outlook which ClearBridge believes will accelerate earnings or improve the value of the company’s assets. ClearBridge also emphasizes companies in those sectors of the economy which it believes are undervalued relative to other sectors.

When evaluating an individual stock, ClearBridge looks for:

n	low market valuations measured by ClearBridge’s valuation models.
n	positive changes in earnings prospects because of factors such as:

n	new, improved or unique products and services
n	new or rapidly expanding markets for the company’s products
n	new management
n	changes in the economic, financial, regulatory or political environment particularly affecting the company
n	effective research, product development and marketing
n	a business strategy not yet recognized by the marketplace

While the fund invests principally in common stocks, the fund may, to a lesser extent, invest in derivatives, foreign securities (up to 25% of assets) and other investment companies or other securities and investment strategies in pursuit of its investment objective.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

This fund is non-diversified.

What is a Non-Diversified Fund?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the fund generally may not have more than 25% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investments in the fund will go up and down.

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Transamerica Legg Mason Partners All Cap

n  Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

n  Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

n  Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

n  Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

n  Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

n  Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

n	different accounting and reporting practices
n	less information available to the public
n	less (or different) regulation of securities markets
n	more complex business negotiations
n	less liquidity
n	more fluctuations in prices
n	delays in settling foreign securities transactions
n	higher costs for holding shares (custodial fees)
n	higher transaction costs
n	vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Non-Diversification

Focusing investments in a small number of issuers, industries or foreign currencies increases risk. Because the fund is non-diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio might be.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

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Transamerica Legg Mason Partners All Cap

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 3000^® Index, a widely recognized, unmanaged index of market performance that tracks the performance of 3000 of the largest U.S. companies based on market capitalization. This index represents approximately 98% of the investable U.S. equity market. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. Absent limitation of the fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	6/30/2003		22	.99%
Worst Quarter:	12/31/2008		(23	.77)%

Average Annual Total Returns as of 12/31/08¹

							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(41	.33)%		(4	.78)%		2	.03%
Return after taxes on distributions3		(41	.47)%		(5	.59)%		1	.37%
Return after taxes on distributions and sale of fund shares3		(26	.67)%		(3	.66)%		1	.81%
Class B (Return before taxes only)		(41	.45)%		(4	.52)%		2	.07%
Class C (Return before taxes only)		(38	.91)%		(4	.32)%		1	.84%
Russell 3000® Index (reflects no deduction for fees, expenses or taxes)		(37	.31)%		(1	.95)%		(0	.78)%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class B commenced operations on March 1, 1999. Class C commenced operations on November 11, 2002.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Note: Prior to March 1, 2002, a different sub-adviser managed this fund, and it had a different investment objective and used different investment strategies. The performance set forth prior to that date is attributable to the previous sub-adviser.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C
Management fees		0	.80%		0	.80%		0	.80%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.44%		0	.44%		0	.35%
Total annual fund operating expenses		1	.59%		2	.24%		2	.15%
Expense reductione		0	.04%		0	.04%		0	.00%
Net operating expenses		1	.55%		2	.20%		2	.15%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

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Transamerica Legg Mason Partners All Cap

^e  Contractual arrangements have been made with the fund’s investment adviser Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,021	$	1,364	$	2,332
B†	$	723	$	996	$	1,296	$	2,408
C	$	318	$	673	$	1,154	$	2,483
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,021	$	1,364	$	2,332
B†	$	223	$	696	$	1,196	$	2,408
C	$	218	$	673	$	1,154	$	2,483

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $500 million	0.80%
Over $500 million	0.675%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.80% of the fund’s average daily net assets.

Sub-Adviser:

ClearBridge Advisors, LLC (“ClearBridge”)
620 Eighth Avenue
New York, New York 10018

ClearBridge is a wholly owned subsidiary of Legg Mason, Inc.

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $100 million	0.425%
Over $100 million up to $500 million	0.40%
Over $500 million	0.35%

The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with the same named fund managed by the sub-adviser for Transamerica Series Trust.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

John J. Goode, managing director of ClearBridge, has managed this fund since May 2002. He joined ClearBridge (or its predecessor firms) in 1969.

Peter J. Hable, managing director of ClearBridge, has managed this fund since May 2002. He joined ClearBridge (or its predecessor firms) in 1983.

The SAI provides additional information about the Portfolio Managers’ compensation, other accounts managed by the Portfolio Managers, and the Portfolio Managers’ ownership of securities in the fund.

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Transamerica Equity

Summary of Risks and Returns

Objective

The objective of Transamerica Equity is to maximize long-term growth.

Principal Strategies and Policies

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), uses a “bottom-up” approach to investing and builds the fund’s portfolio one company at a time by investing fund assets principally in:

n   equity securities

TIM generally invests at least 80% of the fund’s net assets in a diversified portfolio of domestic common stocks. TIM believes in long-term investing and does not attempt to time the market.

TIM employs a rigorous research approach and buys securities of companies it believes have the defining features of premier growth companies that are undervalued in the stock market. Premier companies, in the opinion of TIM, have many or all of the following features:

n	shareholder-oriented management
n	dominance in market share
n	cost production advantages
n	leading brands
n	self-financed growth
n	attractive reinvestment opportunities

What is a “Bottom-Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

While TIM invests principally in domestic common stocks, the fund may, to a lesser extent, invest in other securities or use other investment strategies in pursuit of its investment objective.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

n   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

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Transamerica Equity

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

n  Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

n  Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for their greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

n  Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n   changes in currency values

n   currency speculation

n   currency trading costs

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Focused Investing

To the extent the fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

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Transamerica Equity

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 1000^® Growth Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. Absent limitation of the fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	12/31/2001		12	.85%
Worst Quarter:	12/31/2008		(24	.04)%

Average Annual Total Returns as of 12/31/08¹

							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(48	.45)%		(3	.18)%		(5	.40)%
Return after taxes on distributions3		(48	.45)%		(3	.25)%		(5	.44)%
Return after taxes on distributions and sale of fund shares3		(31	.49)%		(2	.66)%		(4	.42)%
Class B (Return before taxes only)		(48	.59)%		(3	.00)%		(5	.44)%
Class C (Return before taxes only)		(46	.39)%		(2	.75)%		2	.26%
Class T (Return before taxes only)		(49	.84)%		N/A			(21	.11)%
Russell 1000® Growth Index (reflects no deduction for fees, expenses or taxes)		(38	.44)%		(3	.42)%		(7	.85)%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class B commenced operations on March 1, 2000. Class C commenced operations on November 11, 2002. Class T commenced operations on October 27, 2006.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C			T*
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None			8	.50%
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c		None
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C			T*
Management fees		0	.72%		0	.72%		0	.72%		0	.72%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%		0	.00%
Other expenses		0	.32%		0	.49%		0	.32%		0	.17%
Total annual fund operating expenses		1	.39%		2	.21%		2	.04%		0	.89%
Expense reductione		0	.00%		0	.04%		0	.00%		0	.00%
Net operating expenses		1	.39%		2	.17%		2	.04%		0	.89%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based upon the fund’s expenses for the fiscal year ended October 31, 2008.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.17%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.17%, excluding 12b-1 fees and extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.
*	Not available to new investors.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

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Transamerica Equity

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	684	$	996	$	1,269	$	2,127
B†	$	720	$	987	$	1,281	$	2,334
C	$	307	$	640	$	1,098	$	2,369
T	$	933	$	1,110	$	1,301	$	1,853
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	684	$	996	$	1,269	$	2,127
B†	$	220	$	687	$	1,181	$	2,334
C	$	207	$	640	$	1,098	$	2,369
T	$	933	$	1,110	$	1,301	$	1,853

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $500 million	0.75%
Over $500 million up to $2.5 billion	0.70%
Over $2.5 billion	0.65%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.72% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $500 million	0.35%
Over $500 million up to $2.5 billion	0.30%
Over $2.5 billion	0.25%

less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with the same named fund managed by the sub-adviser for Transamerica Series Trust.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Gary U. Rollé, CFA
Portfolio Manager (lead)

Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.

Geoffrey I. Edelstein, CFA, CIC
Portfolio Manager (co)

Geoffrey I. Edelstein is Principal, Managing Director and Portfolio Manager at TIM. He co-manages institutional and TIM’s private separate accounts and sub-advised funds in the Equity disciplines. Mr. Edelstein’s analytical responsibilities include the Consumer Staples sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Westcap was co-founded by Mr. Edelstein in 1992. Prior to Westcap, he practiced Corporate and Real Estate Law from 1988-1991. Mr. Edelstein earned a B.A. from University of Michigan and a J.D. from Northwestern University School of Law. He was a member of the AIMR Blue Ribbon Task Force on Soft Dollars, 1997, and has earned the right to use the Chartered Financial Analyst designation. He is also a member of the Board of Governors’ of the Investment Adviser Association and the Board of Directors of EMQ Families First, the largest children’s agency in California. Mr. Edelstein has 17 years of investment experience.

41

Transamerica Equity

Edward S. Han
Portfolio Manager (co)

Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

John J. Huber, CFA
Portfolio Manager (co)

John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience.

Peter O. Lopez
Portfolio Manager (co)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

Erik U. Rollé
Portfolio Manager (co)

Erik U. Rollé is a Securities Analyst and Co-Portfolio Manager at TIM. He co-manages sub-advised funds and institutional separate accounts in the Growth Equity discipline. Prior to joining TIM in 2005, Mr. Rollé worked as a Research Associate at Bradford & Marzec where his primary responsibilities were within trading and credit research. He received a B.S. in Finance and a B.S. in Journalism from the University of Colorado at Boulder. Mr. Rollé has 6 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

42

Transamerica Growth Opportunities

Summary of Risks and Returns

Objective

The objective of Transamerica Growth Opportunities is to maximize long-term growth.

Principal Strategies and Policies

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), uses a “bottom-up” approach to investing and builds the fund’s portfolio one company at a time by investing fund assets principally in:

n   equity securities such as common stocks, preferred stocks, rights, warrants and securities convertible into or exchangeable for common stocks of small and medium capitalization companies

TIM, under normal market conditions, invests at least 65% of the fund’s assets in a diversified portfolio of equity securities. The companies issuing these securities are companies with small- and medium-sized market capitalization whose market capitalization or annual revenues are no more than $10 billion at the time of purchase.

What is a “Bottom-Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

TIM selects stocks that are issued by U.S. companies which, in its opinion, show:

n	strong potential for steady growth
n	high barriers to competition

n   experienced management incentivized along shareholder interests

It is the opinion of TIM that companies with smaller and medium-sized capitalization levels are less actively followed by security analysts, and, therefore, they may be undervalued, providing strong opportunities for a rise in value.

While the fund invests principally in equity securities, TIM may also, to a lesser extent, invest in debt securities or other securities and investment strategies in pursuit of its investment objective.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

n  Preferred Stocks

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

43

Transamerica Growth Opportunities

n  Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

n  Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

n  Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

n  Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

n  Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier

44

Transamerica Growth Opportunities

than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

n   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell Midcap^® Growth Index, a widely recognized, unmanaged index of market performance that measures the performance of mid-cap companies with higher price-to-book ratios and higher forecasted growth values. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. Absent limitation of the fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	12/31/2001		23	.35%
Worst Quarter:	3/31/2001		(34	.23)%

Average Annual Total Returns as of 12/31/08¹

							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(44	.44)%		(1	.37)%		(5	.95)%
Return after taxes on distributions3		(44	.44)%		(1	.37)%		(5	.95)%
Return after taxes on distributions and sale of fund shares3		(28	.89)%		(1	.16)%		(4	.86)%
Class B (Return before taxes only)		(44	.53)%		(1	.28)%		(6	.02)%
Class C (Return before taxes only)		(42	.17)%		(0	.98)%		3	.66%
Russell Midcap® Growth Index (reflects no deduction for fees, expenses or taxes)		(44	.32)%		(2	.33)%		(6	.81)%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class B commenced operations on March 1, 2000. Class C commenced operations on November 11, 2002.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

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Transamerica Growth Opportunities

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C
Management fees		0	.79%		0	.79%		0	.79%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.67%		0	.67%		0	.55%
Total annual fund operating expenses		1	.81%		2	.46%		2	.34%
Expense reductione		0	.06%		0	.06%		0	.00%
Net operating expenses		1	.75%		2	.40%		2	.34%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based upon the fund’s expenses for the fiscal year ended October 31, 2008.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.40%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.40%, excluding 12b-1 fees and extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	718	$	1,083	$	1,471	$	2,555
B†	$	743	$	1,061	$	1,405	$	2,632
C	$	337	$	730	$	1,250	$	2,676
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	718	$	1,083	$	1,471	$	2,555
B†	$	243	$	761	$	1,305	$	2,632
C	$	237	$	730	$	1,250	$	2,676

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $250 million	0.80%
Over $250 million up to $500 million	0.75%
Over $500 million	0.70%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.79% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $100 million	0.40%
Over $100 million	0.35%

less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

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Transamerica Growth Opportunities

Portfolio Managers:

Edward S. Han
Portfolio Manager (lead)

Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

John J. Huber, CFA
Portfolio Manager (lead)

John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

47

Transamerica Small/Mid Cap Value

Summary of Risks and Returns

Objective

The objective of Transamerica Small/Mid Cap Value is to seek to maximize total return.

Principal Strategies and Policies

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve this objective by investing, under normal conditions, at least 80% of its net assets in small- and mid-cap equity securities of domestic companies. The fund defines small- and mid-cap equities as companies whose market capitalization falls within the range of $100 million to $8 billion.

The fund generally will invest in small and mid-cap equities with valuation characteristics including low price/earnings, price/book, and price/cash flow ratios. These characteristics are evaluated based upon a proprietary analysis of normalized levels of profitability. TIM’s security selection process favors companies with above-average normalized net margins, returns on equity, returns on assets, free cash flow generation, and revenue and earnings growth rates. Trends in balance sheet items including inventories, account receivables, and payables are scrutinized as well. TIM also reviews the company’s products/services, market position, industry condition, financial and accounting policies and quality of management. Securities of issuers that possess the greatest combination of the aforementioned attributes are then prioritized as candidates for purchase.

Although the fund will invest primarily in publicly traded U.S. securities, it will be able to invest up to 10% of its total assets in foreign securities, including securities of issuers in emerging countries and securities quoted in foreign currencies.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

n  Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

n  Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

n	different accounting and reporting practices
n	less information available to the public
n	less (or different) regulation of securities markets
n	more complex business negotiations
n	less liquidity

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Transamerica Small/Mid Cap Value

n	more fluctuations in prices
n	delays in settling foreign securities transactions
n	higher costs for holding shares (custodial fees)
n	higher transaction costs
n	vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of the Prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, investors should note that the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 2500^® Value Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares:	Quarter Ended	Return
Best Quarter:	6/30/2003		30	.88%
Worst Quarter:	9/30/2002		(26	.15)%

Average Annual Total Returns as of 12/31/08¹

							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(42	.28)%		2	.14%		6	.02%
Return after taxes on distributions3		(42	.52)%		0	.78%		5	.10%
Return after taxes on distributions and sale of fund shares3		(27	.18)%		1	.76%		5	.20%
Class B (Return before taxes only)		(42	.27)%		2	.43%		6	.07%
Class C (Return before taxes only)		(39	.87)%		2	.57%		9	.57%
Russell 2500® Value Index (reflects no deduction for fees, expenses or taxes)		(31	.99)%		(0	.15)%		4	.93%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class B commenced operations on April 2, 2001. Class C commenced operations on November 11, 2002.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Note: Prior to March 1, 2004, a different sub-adviser managed this fund, and it had a different investment objective and used different investment strategies. The performance set forth prior to that date is attributable to the previous sub-adviser.

49

Transamerica Small/Mid Cap Value

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C
Management fees		0	.78%		0	.78%		0	.78%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.28%		0	.29%		0	.26%
Total annual fund operating expenses		1	.41%		2	.07%		2	.04%
Expense reductione		0	.00%		0	.00%		0	.00%
Net operating expenses		1	.41%		2	.07%		2	.04%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.40%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized fund operating expenses are less than 1.40% excluding 12b-1 fees and extraordinary expenses.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	686	$	972	$	1,279	$	2,148
B†	$	710	$	949	$	1,214	$	2,231
C	$	307	$	640	$	1,098	$	2,369
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	686	$	972	$	1,279	$	2,148
B†	$	210	$	649	$	1,114	$	2,231
C	$	207	$	640	$	1,098	$	2,369

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $500 million	0.80%
Over $500 million	0.75%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.78% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $500 million	0.375%
Over $500 million	0.325%

less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

50

Transamerica Small/Mid Cap Value

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Jeffrey J. Hoo, CFA
Portfolio Manager (lead)

Jeffrey J. Hoo is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Microcap Equity discipline. Mr. Hoo’s analytical responsibilities include the healthcare sector and industries within the consumer discretionary sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Hoo worked at Sony Pictures Entertainment and KPMG. He is also a past Vice President and board member of the Asian Professional Exchange of Los Angeles. Mr. Hoo earned a B.A. from Duke University and an M.B.A. from the University of California, Los Angeles. He has earned the right to use the Chartered Financial Analyst designation. Mr. Hoo has 11 years of investment experience.

Joshua D. Shaskan, CFA
Portfolio Manager (lead)

Joshua D. Shaskan is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Small and Small/Mid (SMID) Growth Equity disciplines. He joined TIM in 2005 when the firm acquired Westcap Investors LLC. Prior to Westcap, Mr. Shaskan served as an Investment Specialist for three years at Wells Fargo Securities and was also previously a Financial Advisor at Prudential Securities. He earned a B.A. from the University of California, Davis, and an M.B.A. from the University of California, Los Angeles. Mr. Shaskan has earned the right to use the Chartered Financial Analyst designation and has 16 years of investment experience.

Thomas E. Larkin, III
Portfolio Manager (co)

Mr. Larkin co-manages institutional and retail portfolios in the diversified equity strategy. In addition, his senior securities analyst responsibilities include covering the producer durables, autos and transportation, and materials and processing sectors. He joined TIM in 2005 when the firm acquired Westcap Investors LLC. Prior to Westcap, Mr. Larkin interned with Morgan Stanley in the Private Wealth Management Division and with Trust Company of the West as an analyst with their Worldwide Opportunities Emerging Markets Fund. He earned a B.A. in economics from Duke University. Mr. Larkin is currently a CFA Level I candidate and has eight years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

51

Transamerica Convertible Securities

Summary of Risks and Returns

Objective

The objective of Transamerica Convertible Securities is to seek maximum total return through a combination of current income and capital appreciation.

Principal Strategies and Policies

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve this objective by investing principally in:

n   convertible securities

In seeking its investment objective, TIM will normally invest at least 80% of net assets in convertible securities, which are across the credit spectrum and perform more like a stock when the underlying share price is high relative to the conversion price and more like a bond when the underlying share price is low relative to the conversion price. TIM may also invest the fund’s assets in other types of securities, including common stock.

TIM may invest the fund’s assets in securities of foreign issuers in addition to securities of domestic issuers.

In buying and selling securities for the fund, TIM relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, industry position, and economic market conditions. Factors considered include growth potential, earnings estimates, and quality of management.

TIM may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund’s exposure to changing security prices or other factors that affect security values.

The fund may also invest in other securities and investment strategies in pursuit of its investment objective.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

52

Transamerica Convertible Securities

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n	prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities
n	extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n	different accounting and reporting practices
n	less information available to the public
n	less (or different) regulation of securities markets
n	more complex business negotiations
n	less liquidity
n	more fluctuations in prices
n	delays in settling foreign securities transactions
n	higher costs for holding shares (custodial fees)
n	higher transaction costs
n	vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Merrill Lynch All U.S. Convertibles Index (“MLUSCI”), a widely recognized, unmanaged index of market performance that is a market capitalization-weighted index of domestic corporate convertible securities that are convertible to common stock only. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

53

Transamerica Convertible Securities

Class A Shares	Quarter Ended	Return
Best Quarter:	6/30/2003		11	.89%
Worst Quarter:	12/31/2008		(17	.71)%

Average Annual Total Returns as of 12/31/08¹

							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(39	.09)%		(1	.37)%		1	.70%
Return after taxes on distributions3		(39	.45)%		(3	.33)%		(0	.07)%
Return after taxes on distributions and sale of fund shares3		(25	.36)%		(1	.45)%		1	.05%
Class B (Return before taxes only)		(39	.54)%		(1	.21)%		1	.75%
Class C (Return before taxes only)		(37	.00)%		(1	.11)%		2	.94%
MLUSCI (reflects no deduction for fees, expenses or taxes)		(35	.74)%		(3	.44)%		0	.29%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class B commenced operations on March 1, 2002. Class C commenced operations on November 11, 2002.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		4	.75%		None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C
Management fees		0	.75%		0	.75%		0	.75%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.23%		0	.27%		0	.19%
Total annual fund operating expenses		1	.33%		2	.02%		1	.94%
Expense reductione		0	.00%		0	.00%		0	.00%
Net operating expenses		1	.33%		2	.02%		1	.94%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.35%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.35%, excluding 12b-1 fees and extraordinary expenses.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	604	$	876	$	1,169	$	2,000
B†	$	705	$	934	$	1,188	$	2,171
C	$	297	$	609	$	1,047	$	2,264
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	604	$	876	$	1,169	$	2,000
B†	$	205	$	634	$	1,088	$	2,171
C	$	197	$	609	$	1,047	$	2,264

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

54

Transamerica Convertible Securities

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $250 million	0.75%
Over $250 million	0.70%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.75% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.35% of the fund’s average daily net assets, less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Kirk J. Kim
Portfolio Manager (lead)

Kirk J. Kim is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. He holds a B.S. in Finance from the University of Southern California. Mr. Kim has 13 years of investment experience.

Peter O. Lopez
Portfolio Manager (lead)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

55

Transamerica Science & Technology

Summary of Risks and Returns

Objective

The objective of Transamerica Science & Technology is long-term growth of capital.

Principal Strategies and Policies

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve this objective by investing, under normal circumstances, at least 80% of its net assets in common stocks of companies that are expected to benefit from the development, advancement and use of science and technology. These companies may include, without limitation, companies that develop, produce or distribute products or services in the computer, semi-conductor, software, electronics, media, communications, health care, and biotechnology sectors.

In choosing securities, the portfolio managers take a fundamental and research-driven approach to investing in growth stocks. The fund generally invests in companies that rely extensively on technology in their product development or operations and have benefited from technological progress in their operating history or have enabled such progress in others, with a particular focus on companies in developing segments of the sector.

The portfolio managers seek to identify the companies best positioned to benefit from change; generally those with superior business models, proven management teams and businesses that are producing substantial cash flow. Critical to the investment process is the identification of companies exhibiting the highest growth potential at the most attractive prices/valuations. TIM seeks to pay a fair price relative to a company’s intrinsic business value and/or projected growth rate or relative to alternative investments within an industry.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

This fund is non-diversified.

What is a Non-Diversified Fund?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the fund generally may not have more than 25% of its total assets invested in any one issuer, with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Science and Technology Stocks

Securities of science and technology companies are strongly affected by worldwide scientific and technological developments and governmental policies, and, therefore, are generally dependent upon or associated with scientific technological issues. The entire value of the fund may decrease if technology-related industries decline. Further, the prices of many science and technology companies have experienced considerable volatility in the past and may do so in the future.

n  Health Care Sector

Health care companies are strongly affected by worldwide scientific or technological developments. Their products may rapidly become obsolete and are also often dependent on the developer’s ability to receive patents from regulatory agencies and then to enforce them in the market. A health care company’s valuation can often be based largely on the potential or actual performance of a limited number of products. A health care company’s valuation can be greatly affected if one of its products proves unsafe, ineffective or unprofitable. Many health care companies are also subject to significant government regulation and may be affected by changes in governmental policies. As a result, investments in the health and biotechnology segments

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include the risk that the economic prospects, and the share prices, of health and biotechnology companies can fluctuate dramatically due to changes in the regulatory or competitive environments.

n  Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

n  Non-Diversification

Focusing investments in a small number of issuers, industries or foreign currencies increases risk. Because the fund is non-diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio might be.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Dow Jones U.S. Technology Index, a widely recognized, unmanaged index of market performance that measures the performance of the technology sector of the U.S. equity market. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. Absent limitation of the fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	12/31/2001		35	.04%
Worst Quarter:	9/30/2001		(34	.51)%

Average Annual Total Returns as of 12/31/08¹

							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(52	.03)%		(7	.10)%		(14	.72)%
Return after taxes on distributions3		(52	.03)%		(7	.28)%		(14	.82)%
Return after taxes on distributions and sale of fund shares3		(33	.82)%		(5	.83)%		(11	.03)%
Class B (Return before taxes only)		(52	.11)%		(6	.81)%		(14	.75)%
Class C (Return before taxes only)		(49	.99)%		(6	.63)%		0	.82%
Dow Jones U.S. Technology Index (reflects no deduction for fees, expenses, or taxes)		(42	.85)%		(5	.21)%		(13	.81)%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class B commenced operations on July 14, 2000. Class C commenced operations on November 11, 2002.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Note: Prior to August 1, 2006, a different sub-adviser managed this fund, and it used different investment strategies. The performance set forth prior to that date is attributable to the previous sub-adviser.

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Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C
Management fees		0	.78%		0	.78%		0	.78%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.57%		0	.75%		0	.53%
Total annual fund operating expenses		1	.70%		2	.53%		2	.31%
Expense reductione		0	.17%		0	.35%		0	.13%
Net operating expenses		1	.53%		2	.18%		2	.18%

^a  Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.

b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.18%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.18%, excluding 12b-1 fees and extraordinary expenses.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	697	$	1,041	$	1,407	$	2,435
B†	$	721	$	1,054	$	1,414	$	2,635
C	$	321	$	709	$	1,223	$	2,636
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	697	$	1,041	$	1,407	$	2,435
B†	$	221	$	754	$	1,314	$	2,635
C	$	221	$	709	$	1,223	$	2,636

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

All Average Daily Net Assets

First $500 million	0.78%
Over $500 million	0.70%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.78% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.35%
Over $250 million up to $500 million	0.30%
Over $500 million	0.25%

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A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Kirk J. Kim
Portfolio Manager (lead)

Kirk J. Kim is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. He holds a B.S. in Finance from the University of Southern California. Mr. Kim has 13 years of investment experience.

Jeffrey J. Hoo, CFA
Portfolio Manager (co)

Jeffrey J. Hoo is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Microcap Equity discipline. Mr. Hoo’s analytical responsibilities include the healthcare sector and industries within the consumer discretionary sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Hoo worked at Sony Pictures Entertainment and KPMG. He is also a past Vice President and board member of the Asian Professional Exchange of Los Angeles. Mr. Hoo earned a B.A. from Duke University and an M.B.A. from the University of California, Los Angeles. He has earned the right to use the Chartered Financial Analyst designation. Mr. Hoo has 11 years of investment experience.

Erik U. Rollé
Portfolio Manager (co)

Erik U. Rollé is a Securities Analyst and Co-Portfolio Manager at TIM. Mr. Rollé co-manages sub-advised funds and institutional separate accounts in the Growth Equity discipline. Prior to joining TIM in 2005, Mr. Rollé worked as a Research Associate at Bradford & Marzec where his primary responsibilities were within trading and credit research. He received a B.S. in Finance and a B.S. in Journalism from the University of Colorado at Boulder. Mr. Rollé has 6 years of investment experience.

Joshua D. Shaskan, CFA
Portfolio Manager (co)

Joshua D. Shaskan is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Small and Small/Mid (SMID) Growth Equity disciplines. He joined TIM in 2005 when the firm acquired Westcap Investors LLC. Prior to Westcap, Mr. Shaskan served as an Investment Specialist for three years at Wells Fargo Securities and was also previously a Financial Advisor at Prudential Securities. He earned a B.A. from the University of California, Davis, and an M.B.A. from the University of California, Los Angeles. Mr. Shaskan has earned the right to use the Chartered Financial Analyst designation and has 16 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Transamerica Templeton Global

Summary of Risks and Returns

Objective

The objective of Transamerica Templeton Global is to seek long-term growth of capital.

Principal Strategies and Policies

The fund’s assets are allocated between two sub-advisers, Transamerica Investment Management, LLC (“TIM”) and Templeton Investment Counsel, LLC (“Templeton”). TIM manages a portion of the fund’s assets composed of domestic securities (called the “domestic portfolio”), and Templeton manages a portion of the fund’s assets composed of non-U.S. securities (called the “international portfolio”). The percentage of assets allocated to each manager generally is based on the weighting of securities from U.S. and foreign issuers comprising the Morgan Stanley Capital International World Index (“MSCIW Index”), a market capitalization-weighted benchmark index made up of equities from 23 countries, including the U.S. Each of the domestic and international percentages of the fund are adjusted periodically to account for changes that may be made in the composition of the MSCIW Index.

n  Domestic Portfolio

The fund will invest, under normal circumstances, at least 80% of its assets in the “domestic portfolio” in a diversified portfolio of domestic common stocks that are believed by TIM to have the defining feature of premier growth companies that are undervalued in the stock market. TIM uses a “bottom-up” approach to investing and builds the fund’s portfolio one company at a time by investing fund assets principally in equity securities. TIM believes in long-term investing and does not attempt to time the market. TIM buys securities of companies it believes have the defining features of premier growth companies that are undervalued in the stock market. Premier companies, in the opinion of TIM, have many or all of the following features — shareholder-oriented management, dominance in market share, cost production advantages, leading brands, self-financed growth and attractive reinvestment opportunities.

What is a “Bottom-Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

n  International Portfolio

Templeton seeks to achieve the fund’s objective by investing in foreign securities. Templeton normally will invest the assets of the “international portfolio” primarily in equity securities. An equity security, or stock, represents a proportionate share of the ownership of a company. Its value is based on the success of the company’s business, any income paid to stockholders, the value of the company’s assets and general market conditions. Common stocks, preferred stocks and convertible securities are examples of equity securities. Convertible securities generally are debt securities or preferred stock that may be converted into common stock after certain time periods or under certain circumstances.

For purposes of the fund’s investments, “foreign securities” means those securities issued by companies that:

n	have their principal securities trading markets outside the U.S.; or
n	derive 50% or more of their total revenue from either goods or services produced or sales made in markets outside the U.S.; or
n	have 50% or more of their assets outside the U.S.; or
n	are linked to non-U.S. dollar currencies; or
n	are organized under the laws of, or with principal offices in, another country

The fund may invest a portion of its assets in smaller companies. The fund considers smaller company stocks to be generally those with market capitalizations of less than $4 billion. Templeton may also invest in American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), which are certificates issued typically by a bank or trust company that give their holders the right to receive securities issued by a foreign or domestic company. Templeton, from time to time, may have significant investments in one or more countries or in particular sectors such as technology companies and financial institutions.

Depending upon current market conditions, Templeton generally invests a portion of its total assets in debt securities of companies and governments located anywhere in the world. Templeton may use various derivative strategies seeking to protect its assets, implement a cash or tax management strategy or enhance its returns. With derivatives, the manager attempts to predict whether an underlying investment will increase or decrease in value at some future time. The manager considers various factors, such as availability and cost, in deciding whether to use a particular instrument or strategy.

When choosing equity investments, Templeton applies a “bottom-up,” value-oriented, long-term approach, focusing on the market price of a company’s securities relative to the manager’s evaluation of the company’s long-term earnings, asset value and cash flow potential. The manager also considers and analyzes various measures relevant to stock valuation, such as a company’s price/cash flow ratio, price/earnings ratio, profit margins and liquidation value.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

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n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Foreign Securities

Investments in foreign securities, including ADRs, GDRs and EDRs, involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

n	different accounting and reporting practices
n	less information available to the public
n	less (or different) regulation of securities markets
n	more complex business negotiations
n	less liquidity
n	more fluctuations in prices
n	delays in settling foreign securities transactions
n	higher costs for holding shares (custodial fees)
n	higher transaction costs
n	vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own business, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

n  Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

n  Smaller Companies

Investing in smaller companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

n  Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

n  Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be

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subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

n  Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

n   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Country, Sector or Industry Focus

To the extent the fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the single country, sector or industry than if the fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, technology companies involve risks due to factors such as the rapid pace of product change, technological developments and new competition. Their stocks historically have been volatile in price, especially over the short term, often without regard to the merits of individual companies. Banks and financial institutions are subject to potentially restrictive governmental controls and regulations that may limit or adversely affect profitability and share price. In addition, securities in that sector may be very sensitive to interest rate changes throughout the world.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the MSCIW Index, a widely recognized, unmanaged index of market performance made up of equities from 23 countries including the U.S. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. Absent limitation of the fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

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Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	12/31/1999		43	.29%
Worst Quarter:	12/31/2008		(21	.89)%

Average Annual Total Returns as of 12/31/08¹

							10 Years or
							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(46	.67)%		(4	.06)%		(2	.87)%
Return after taxes on distributions3		(46	.76)%		(4	.18)%		(3	.11)%
Return after taxes on distributions and sale of fund shares3		(30	.25)%		(3	.37)%		(2	.33)%
Class B (Return before taxes only)		(46	.80)%		(3	.82)%		(2	.84)%
Class C (Return before taxes only)		(44	.57)%		(3	.65)%		0	.05%
MSCIW Index (reflects no deduction for fees, expenses or taxes)		(40	.33)%		0	.00%		(0	.19)%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A commenced operations on October 1, 1992. Class B commenced operations on October 1, 1995. Class C commenced operations on November 11, 2002.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Note: Prior to May 29, 2004, a different sub-adviser managed this fund, and it had a different investment objective and used different investment strategies. In addition, prior to August 1, 2006, another sub-adviser served as co-investment sub-adviser to the fund and managed the fund’s domestic equity component. Prior to October 27, 2006, the fund employed a different investment program for the fund’s domestic equity component. The performance set forth prior to these dates is attributable to the previous sub-advisers.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C
Management fees		0	.80%		0	.80%		0	.80%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.46%		0	.64%		0	.46%
Total annual fund operating expenses		1	.61%		2	.44%		2	.26%
Expense reductione		0	.06%		0	.24%		0	.06%
Net operating expenses		1	.55%		2	.20%		2	.20%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

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Transamerica Templeton Global

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,025	$	1,373	$	2,351
B†	$	723	$	1,038	$	1,379	$	2,553
C	$	323	$	701	$	1,205	$	2,590
If the shares are not redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,025	$	1,373	$	2,351
B†	$	223	$	738	$	1,279	$	2,553
C	$	223	$	701	$	1,205	$	2,590

^†  Examples for Class B shares assume conversion to Class A shares eight years after you purchase them.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $500 million	0.80%
Over $500 million	0.70%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.80% of the fund’s average daily net assets.

Sub-Advisers:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, California 90025

Templeton Investment Counsel, LLC (“Templeton”)
500 E. Broward Blvd, Suite 2100
Fort Lauderdale, FL 33394

Sub-Advisory Fee:

TIM receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $500 million	0.35%
Over $500 million	0.30%

Templeton receives a portion of the sub-advisory fee based on the amount of assets that it manages as follows:

First $500 million	0.40%
Over $500 million up to $1.5 billion	0.375%
Over $1.5 billion	0.35%

TIM receives the sub-advisory fee stated above, less any amount paid to Templeton for its sub-advisory services.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

TIM:

Gary U. Rollé, CFA
Portfolio Manager (co)

Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.

Templeton:

Tina Sadler, CFA, Vice President, Portfolio Manager and Research Analyst, joined Templeton in 1997 and currently has global research responsibilities for global wireless telecommunication services, small-cap telecommunications, as well as building and construction materials.

Antonio T. Docal, CFA, Senior Vice President, joined the Templeton organization in 2001. With more than 20 years of investment experience, Mr. Docal has research responsibility for the global chemical industry, as well as the telecommunications equipment sector. Prior to joining Templeton, Mr. Docal was Vice President and Director at Evergreen Funds in Boston, managing the Evergreen Latin America Fund and co-managing the Evergreen Emerging Markets Growth Fund and the Evergreen Global Opportunities Fund. Mr. Docal earned a B.A. in economics from Trinity College in Connecticut and an M.B.A. with concentrations in finance and international management from the Sloan School of Management at the Massachusetts Institute of Technology.

Gary Motyl, CFA, President and Chief Investment Officer, Templeton Institutional Global Equities, manages several institutional mutual funds and separate account portfolios and has research responsibility for the global automobile industry. Mr. Motyl joined Templeton in 1981.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The Templeton organization has been investing globally since 1940.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Transamerica Balanced

Summary of Risks and Returns

Objective

The objective of Transamerica Balanced is to seek long-term capital growth and current income with a secondary objective of capital preservation, by balancing investments among stocks, bonds and cash or cash equivalents.

Principal Strategies and Policies

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve the fund’s objective by investing primarily in common stocks and high quality bonds with maturities of less than 30 years. TIM may also invest in cash or cash equivalents such as money market funds and other short-term investment instruments. This requires the managers of each portion of the fund to be flexible in managing the fund’s assets. At times, TIM may shift portions held in bonds and stocks according to business and investment conditions. However, at all times the fund will hold at least 25% of its assets in non-convertible fixed-income securities.

To achieve its goal, TIM invests in a diversified portfolio of common stocks, bonds, money market instruments and other short-term debt securities issued by companies of all sizes. TIM’s equity and fixed-income management teams work together to build a portfolio of growth stocks combined with bonds that TIM considers to be of good credit quality purchased at favorable prices.

TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual issuers. The fund is constructed one security at a time. Each issuer passes through a research process and stands on its own merits as a viable investment in TIM’s opinion.

What is a “Bottom-Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

n  Equity Investments

TIM uses an intrinsic value discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long term, above-average rate of return. In projecting free cash flows and determining earnings potential and valuation, TIM uses multiple factors such as:

n	the quality of the management team;
n	the company’s ability to earn returns on capital in excess of the cost of capital;
n	competitive barriers to entry; and
n	the financial condition of the company.

TIM takes a long-term approach to investing and views each investment in a company as owning a piece of the business.

n  Fixed-Income Investments

TIM’s bond management team seeks out bonds with credit strength of the quality that it believes could warrant higher ratings, which, in turn, could lead to higher valuations. To identify these bonds, the bond research team performs in-depth income and credit analysis on companies issuing bonds under consideration for the fund. It also compiles bond price information from many different bond markets and evaluates how these bonds can be expected to perform with respect to recent economic developments. TIM analyzes this market information daily, negotiating each trade and buying bonds at what TIM considers to be the best available prices.

The fund may invest in mortgage-backed securities and lower-rated bonds. The fund may also invest in derivative securities, including futures, options and options on futures, swaps and foreign securities.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

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Transamerica Balanced

n  Stocks

Stocks may be volatile – their prices may go up and down more dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investments in the fund will go up and down.

n  Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n	prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities
n	extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

n  Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U. S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than

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originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

n  Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

n  Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Standard and Poor’s 500 Stock Index (“S&P 500 Index”), which is comprised of 500 widely traded common stocks that measures the general performance of the market, and the Barclays Capital (formerly Lehman Brothers) U.S. Aggregate Index (“BCUSA Index”), which covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. Each index is a widely recognized, unmanaged index of market performance. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

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Transamerica Balanced

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	12/31/1999		14	.82%
Worst Quarter:	12/31/2008		(16	.46)%

Average Annual Total Returns as of 12/31/08¹

							10 Years or
							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(36	.41)%		(1	.95)%		0	.66%
Return after taxes on distributions3		(37	.30)%		(2	.43)%		0	.07%
Return after taxes on distributions and sale of fund shares3		(22	.78)%		(1	.69)%		0	.35%
Class B (Return before taxes only)		(36	.29)%		(1	.59)%		0	.72%
Class C (Return before taxes only)		(33	.73)%		(1	.39)%		0	.62%
S&P 500 Index (reflects no deduction for fees, expenses or taxes)		(37	.00)%		(2	.19)%		(1	.38)%
BCUSA Index (reflects no deduction for fees, expenses or taxes)		5	.24%		4	.65%		5	.63%
Barclays Capital U.S. Government/Credit Bond Index (reflects no deduction for fees, expenses or taxes)4		5	.70%		4	.64%		5	.64%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A commenced operations on December 2, 1994. Class B commenced operations on October 1, 1995. Class C commenced operations on November 11, 2002.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

⁴  This index served as one of the fund’s benchmarks prior to January 1, 2009, at which time it was replaced with the BCUSA Index. This benchmark index change was made to more accurately reflect the principal strategies and policies of the fund.

Note: Prior to May 28, 2004, a different sub-adviser managed this fund, and it had a different investment objective and used different investment strategies. The performance set forth prior to that date is attributable to the previous sub-adviser.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C
Management fees		0	.80%		0	.80%		0	.80%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.37%		0	.35%		0	.28%
Total annual fund operating expenses		1	.52%		2	.15%		2	.08%
Expense reductione		0	.00%		0	.00%		0	.00%
Net operating expenses		1	.52%		2	.15%		2	.08%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.45%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.45%, excluding 12b-1 fees and extraordinary expenses.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

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If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	696	$	1,004	$	1,333	$	2,263
B†	$	718	$	973	$	1,254	$	2,323
C	$	311	$	652	$	1,119	$	2,410
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	696	$	1,004	$	1,333	$	2,263
B†	$	218	$	673	$	1,154	$	2,323
C	$	211	$	652	$	1,119	$	2,410

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $250 million	0.80%
Over $250 million up to $500 million	0.75%
Over $500 million up to $1.5 billion	0.70%
Over $1.5 billion	0.625%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.80% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the following indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.35%
Over $250 million up to $500 million	0.325%
Over $500 million up to $1.5 billion	0.30%
Over $1.5 billion	0.25%

less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Gary U. Rollé, CFA
Portfolio Manager (lead-equity)

Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.

Greg D. Haendel, CFA
Portfolio Manager (lead-fixed income)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

Derek S. Brown, CFA
Portfolio Manager (co-fixed income)

Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.

Geoffrey I. Edelstein, CFA, CIC
Portfolio Manager (co-equity)

Geoffrey I. Edelstein is Principal, Managing Director and Portfolio Manager at TIM. He co-manages institutional and TIM’s private separate accounts and sub-advised funds in the Equity disciplines. Mr. Edelstein’s analytical responsibilities include the Consumer Staples sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Westcap was co-founded by Mr. Edelstein in 1992. Prior to Westcap, he practiced Corporate and Real Estate Law from 1988-1991. Mr. Edelstein earned a B.A. from University of Michigan and a

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J.D. from Northwestern University School of Law. He was a member of the AIMR Blue Ribbon Task Force on Soft Dollars, 1997, and has earned the right to use the Chartered Financial Analyst designation. He is also a member of the Board of Governors’ of the Investment Adviser Association and the Board of Directors of EMQ Families First, the largest children’s agency in California. Mr. Edelstein has 17 years of investment experience.

Edward S. Han
Portfolio Manager (co-equity)

Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

John J. Huber, CFA
Portfolio Manager (co-equity)

John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience.

Peter O. Lopez
Portfolio Manager (co-fixed income)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

Erik U. Rollé
Portfolio Manager (co-equity)

Erik U. Rollé is a Securities Analyst and Co-Portfolio Manager at TIM. He co-manages sub-advised funds and institutional separate accounts in the Growth Equity discipline. Prior to joining TIM in 2005, Mr. Rollé worked as a Research Associate at Bradford & Marzec where his primary responsibilities were within trading and credit research. He received a B.S. in Finance and a B.S. in Journalism from the University of Colorado at Boulder. Mr. Rollé has 6 years of investment experience.

Brian W. Westhoff, CFA
Portfolio Manager (co-fixed income)

Brian W. Westhoff is a Portfolio Manager at TIM. Prior to joining TIM in 2003, Mr. Westhoff worked as an Equity Research Intern with Credit Suisse Asset Management, as a Fixed Income Investment Analyst at St. Paul Companies, and as an Argentine/Oil and Gas Equity Research Intern with Merrill Lynch in Argentina. He holds an M.B.A. from Thunderbird, the Garvin Graduate School of International Management, and received a B.S. in Business Administration from Drake University. Mr. Westhoff has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Summary of Risks and Returns

Objective

The objective of Transamerica Value Balanced is preservation of capital and competitive investment returns.

Principal Strategies and Policies

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve the fund’s objective by investing fund assets principally in:

n   domestic equities whose market capitalization generally exceeds $3 billion

n	debt obligations of U.S. and foreign issuers, some of which will be convertible into common stocks
n	U.S. Treasury bonds, notes and bills
n	money market instruments
n	mortgage-backed and asset-backed securities

To achieve its goal the fund invests in a diversified portfolio of common stocks, bonds, money market instruments and other short-term debt securities issued by companies of all sizes. TIM’s equity and fixed-income management teams work together to build a portfolio of growth stocks combined with bonds that TIM considers to be of good credit quality purchased at favorable prices.

TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual issuers. The fund is constructed one security at a time. Each issuer passes through a research process and stands on its own merits as a viable investment in TIM’s opinion.

What is a “Bottom-Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

Although the fund will invest primarily in publicly traded U.S. securities, it will be able to invest up to 10% of its total assets in foreign securities, including securities of issuers in emerging countries and securities quoted in foreign currencies.

TIM will seek to enhance returns in rising stock markets by increasing its allocation to equity, then seek to protect itself in falling stock markets by reducing equity exposure and shifting into fixed-income investments, as well as into money market funds. However at all times the fund will hold at least 25% of its assets in non-convertible fixed-income securities.

n  Equity Investments

TIM uses an intrinsic value discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long term, above-average rate of return. In projecting free cash flows and determining earnings potential and valuation, TIM uses multiple factors such as:

n   the quality of the management team;

n   the company’s ability to earn returns on capital in excess of the cost of capital;

n   competitive barriers to entry; and

n   the financial condition of the company.

TIM takes a long-term approach to investing and views each investment in a company as owning a piece of the business.

n  Fixed-Income Investments

TIM’s bond management team seeks out bonds with credit strength of the quality that it believes could warrant higher ratings, which, in turn, could lead to higher valuations. To identify these bonds, the bond research team performs in-depth income and credit analysis on companies issuing bonds under consideration for the fund. It also compiles bond price information from many different bond markets and evaluates how these bonds can be expected to perform with respect to recent economic developments. TIM analyzes this market information daily, negotiating each trade and buying bonds at what TIM considers to be the best available prices.

The fund may invest in mortgage-backed securities and lower-rated bonds. The fund may also invest in derivative securities, including futures, options and options on futures, swaps and foreign securities.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

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n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n	prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities
n	extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

n  Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

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n  Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

n  High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

n  Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for their greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 1000^® Value Index, which measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values, and the Barclays Capital (formerly Lehman Brothers) U.S. Aggregate Index (“BCUSA Index”) (secondary), which covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. Each index is a widely recognized, unmanaged index of market performance. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares

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of the fund, includes deduction of applicable sales charges. Absent limitations of the fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	6/30/2003		12	.90%
Worst Quarter:	12/31/2008		(16	.08)%

Average Annual Total Returns as of 12/31/08¹

							10 Years or
							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(35	.32)%		(2	.21)%		0	.05%
Return after taxes on distributions3		(35	.89)%		(3	.06)%		(0	.97)%
Return after taxes on distributions and sale of fund shares3		(22	.82)%		(1	.77)%		(0	.24)%
Class B (Return before taxes only)		(35	.43)%		(1	.92)%		0	.07%
Class C (Return before taxes only)		(32	.68)%		(1	.71)%		2	.08%
Russell 1000® Value Index (reflects no deduction for fees, expenses or taxes)		(36	.85)%		(0	.79)%		1	.36%
BCUSA Index (secondary) (reflects no deduction for fees, expenses or taxes)		5	.24%		4	.65%		5	.63%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class B commenced operations on October 1, 1995. Class C commenced operations on November 11, 2002.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		5	.50%		None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C
Management fees		0	.75%		0	.75%		0	.75%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.46%		0	.55%		0	.38%
Total annual fund operating expenses		1	.56%		2	.30%		2	.13%
Expense reductione		0	.01%		0	.10%		0	.00%
Net operating expenses		1	.55%		2	.20%		2	.13%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.20%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20%, excluding 12b-1 fees and extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

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If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,015	$	1,352	$	2,304
B†	$	723	$	1,009	$	1,321	$	2,443
C	$	316	$	667	$	1,144	$	2,462
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	699	$	1,015	$	1,352	$	2,304
B†	$	223	$	709	$	1,221	$	2,443
C	$	216	$	667	$	1,144	$	2,462

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $500 million	0.75%
Over $500 million up to $1 billion	0.65%
Over $1 billion	0.60%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.75% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $500 million	0.35%
Over $500 million up to $1 billion	0.325%
Over $1 billion	0.30%

less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Greg D. Haendel, CFA
Portfolio Manager (lead-fixed income)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

Geoffrey I. Edelstein, CFA, CIC
Portfolio Manager (lead-equity)

Geoffrey I. Edelstein is Principal, Managing Director and Portfolio Manager at TIM. He co-manages institutional and TIM’s private separate accounts and sub-advised funds in the Equity disciplines. Mr. Edelstein’s analytical responsibilities include the Consumer Staples sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Westcap was co-founded by Mr. Edelstein in 1992. Prior to Westcap, he practiced Corporate and Real Estate Law from 1988-1991. Mr. Edelstein earned a B.A. from University of Michigan and a J.D. from Northwestern University School of Law. He was a member of the AIMR Blue Ribbon Task Force on Soft Dollars, 1997, and has earned the right to use the Chartered Financial Analyst designation. He is also a member of the Board of Governors’ of the Investment Adviser Association and the Board of Directors of EMQ Families First, the largest children’s agency in California. Mr. Edelstein has 17 years of investment experience.

Derek S. Brown, CFA
Portfolio Manager (co-fixed income)

Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.

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Transamerica Value Balanced

Scott L. Dinsdale, CFA
Portfolio Manager (co-equity)

Scott L. Dinsdale is a Senior Securities Analyst at TIM. He re-joined TIM in 2005 after previously serving as a Fixed Income Analyst from 1999-2000. Mr. Dinsdale was a Portfolio Manager and Analyst in the High Yield and Convertible Securities group at Pacific Life Insurance Company and previously worked as a Director at Standard and Poor’s Ratings Group. He holds an M.B.A. in Finance and International Business from the Stern School of Business at New York University and received a B.A. in Business Administration from San Diego State University. Mr. Dinsdale has earned the right to use the Chartered Financial Analyst designation and has 20 years of investment experience.

Kirk R. Feldhus
Portfolio Manager (co-equity)

Kirk R. Feldhus is a Securities Analyst at TIM. He co-manages institutional and retail portfolios for the diversified equity and all-cap value strategies. He joined TIM in 2005 when the firm acquired Westcap Investors LLC. Prior to Westcap, Mr. Feldhus served as vice president at Crystal Cove Capital. He has worked as a research associate at Bank of America Securities and as a management consultant at Ernst & Young. He holds an MBA from the Marshall School at the University of Southern California and earned a B.S. from Colorado State University. Mr. Feldhus has 9 years of investment experience.

Brian W. Westhoff, CFA
Portfolio Manager (co-equity)

Brian W. Westhoff is a Portfolio Manager at TIM. Prior to joining TIM in 2003, Mr. Westhoff worked as an Equity Research Intern with Credit Suisse Asset Management, as a Fixed Income Investment Analyst at St. Paul Companies, and as an Argentine/Oil and Gas Equity Research Intern with Merrill Lynch in Argentina. He holds an M.B.A. from Thunderbird, the Garvin Graduate School of International Management, and received a B.S. in Business Administration from Drake University. Mr. Westhoff has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Transamerica High Yield Bond

Summary of Risks and Returns

Objective

The objective of Transamerica High Yield Bond is to seek a high level of current income by investing in high-yield debt securities.

Principal Strategies and Policies

The fund’s sub-adviser, AEGON USA Investment Management, LLC (“AUIM”), seeks to achieve this objective by principally investing at least 80% of the fund’s net assets in a diversified portfolio of:

n   high-yield/high-risk bonds (commonly known as “junk bonds”)

These junk bonds are high risk debt securities rated in medium or lower rating categories or determined by AUIM to be of comparable quality.

Please see Appendix B for a description of bond ratings.

AUIM’s strategy is to achieve yields as high as possible while managing risk. AUIM uses a “top-down/bottom-up” approach in managing the fund’s assets. The “top-down” approach is to adjust the risk profile of the fund. AUIM analyzes four factors that affect the movement of fixed-income bond prices which include: economic indicators; technical indicators that are specific to the high-yield market; investor sentiment and valuation. Analysis of these factors assists AUIM in its decisions regarding the fund’s portfolio allocations.

AUIM has developed a proprietary credit model that is the foundation of its “bottom-up” analysis. The model tracks historical cash flow numbers and calculates credit financial ratios. Because high-yield companies are of higher financial risk, AUIM does a thorough credit analysis of all companies in the fund’s portfolio, as well as all potential acquisitions.

Each potential buy and sell candidate is analyzed by AUIM from both the “top-down” and “bottom-up” strategies. An industry may look attractive in one area, but not the other. They can review the results of their analysis and decide whether or not to proceed with a transaction.

AUIM may sell fund securities when it determines there are changes in economic indicators, technical indicators or valuation.

What is a “Bottom-Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

What is a “Top-Down” Approach?

When using a “top-down” approach, the fund manager looks first at broad market factors, and on the basis of those market factors, chooses certain sectors, or industries within the overall market. The manager then looks at individual companies within those sectors or industries.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

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Transamerica High Yield Bond

n	prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities
n	extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website at approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Merrill Lynch High Yield Cash Pay Index (“ML High Yield Index”), a widely recognized, unmanaged index of market performance that is a market-value-weighted index of all domestic and Yankee high-yield bonds. Issues included in the index have maturities of one year or more and have a credit rating lower than Baa3/BBB, but are not in default. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	6/30/2003		7	.12%
Worst Quarter:	12/31/2008		(16	.73)%

Average Annual Total Returns as of 12/31/08¹

							10 Years or
							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(28	.82)%		(2	.59)%		1	.17%
Return after taxes on distributions3		(30	.96)%		(4	.88)%		(1	.37)%
Return after taxes on distributions and sale of fund shares3		(18	.50)%		(3	.27)%		(0	.40)%
Class B (Return before taxes only)		(29	.38)%		(2	.49)%		1	.13%
Class C (Return before taxes only)		(26	.52)%		(2	.34)%		1	.43%
ML High Yield Index (reflects no deduction for fees, expenses or taxes)		(26	.21)%		(0	.84)%		2	.27%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a

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Transamerica High Yield Bond

tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A commenced operations on June 14, 1985. Class B commenced operations on October 1, 1995. Class C commenced operations on November 11, 2002.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		4	.75%		None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C
Management fees		0	.59%		0	.59%		0	.59%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.22%		0	.26%		0	.21%
Total annual fund operating expenses		1	.16%		1	.85%		1	.80%
Expense reductione		0	.00%		0	.00%		0	.00%
Net operating expenses		1	.16%		1	.85%		1	.80%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.
d	Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.
e	Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc., (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.24%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.24%, excluding 12b-1 fees and extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	588	$	826	$	1,083	$	1,817
B†	$	688	$	882	$	1,101	$	1,989
C	$	283	$	566	$	975	$	2,116
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	588	$	826	$	1,083	$	1,817
B†	$	188	$	582	$	1,001	$	1,989
C	$	183	$	566	$	975	$	2,116

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $400 million	0.59%
Over $400 million up to $750 million	0.575%
Over $750 million	0.55%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.59% of the fund’s average daily net assets.

Sub-Adviser:

AEGON USA Investment Management, LLC (“AUIM”)
4333 Edgewood Road NE
Cedar Rapids, Iowa 52499-5338

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Transamerica High Yield Bond

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $400 million	0.28%
Over $400 million up to $750 million	0.25%
Over $750 million	0.20%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

David R. Halfpap, CFA
Senior Vice President — Portfolio Manager

Iowa State University, B.S. 1974. Mr. Halfpap joined AUIM in 1975. He is responsible for formulating and directing portfolio strategy and management for Transamerica High Yield Bond, the fixed-income portfolio of the AEGON USA Inc. Pension Trust and AEGON Financial Partners. He is a member of the Portfolio Managers Group and the Pension Investment Policy Committee with asset management experience spanning equities, high-yield bonds and investment-grade corporate bonds. Mr. Halfpap is a member of the CFA Institute and a former director of the Iowa Society of the Institute.

Bradley J. Beman, CFA, CPA
Senior Vice President, Director — High Yield

University of Northern Iowa, B.A. 1987; University of Iowa, M.B.A. 1991. Mr. Beman joined AUIM in 1988 after working in various capacities with AEGON USA and Life Investors. Prior to his current role, Mr. Beman held various investment responsibilities ranging from Fixed Income Analyst to Director of Credit Research. Mr. Beman currently manages the Public High Yield Portfolio and is co-portfolio manager of Transamerica High Yield Bond. He also provides oversight for additional asset classes within the Public Fixed Income area.

Benjamin D. Miller, CFA
High Yield Portfolio Manager

University of Northern Iowa, B.A.; University of Iowa, M.B.A. Mr. Miller joined AUIM in 1993 working as a Private Placement research analyst. Prior to his current role, Mr. Miller worked in various credit research roles in the corporate bond department at AUIM. His current responsibilities include high yield trading and portfolio management for the AEGON USA High Yield General Portfolio, as well as Transamerica High Yield Bond.

AUIM has provided investment advisory services to various clients since 1989.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Transamerica Flexible Income

Summary of Risks and Returns

Objective

The objective of Transamerica Flexible Income is to seek to provide as high a level of current income for distribution as is consistent with prudent investment, with capital appreciation as only a secondary objective.

Principal Strategies and Policies

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), uses a “bottom up” approach to investing and builds the fund’s portfolio one company at a time.

The fund will generally invest at least 80% of net assets in a broad range of fixed-income securities including:

n   U.S. Government and foreign government bonds and notes (including emerging market countries);

n   Mortgage-backed, commercial mortgage-backed, and asset-backed securities (including collateralized mortgage obligations);

n   Corporate bonds of issuers in the U.S. and foreign countries (including emerging market countries);

n   Convertible bonds and other convertible securities;

n   Bank loans and loan participations:

n   Structured notes; and

n   Preferred securities.

With respect to these investments:

1.  Under normal market conditions, at least 50% of the value of the fund’s assets will be invested in (a) debt securities which have a rating within the four highest grades as determined by Moody’s Investors Service, Inc. (“Moody’s”) (“Aaa, Aa, A or Baa”) or Standard & Poor’s Corporation (“S&P”) (“AAA, AA, A or BBB”); (b) securities issued or guaranteed by the United States Government or its agencies or instrumentalities; (c) commercial paper rated Prime, Prime-1 or Prime-2 by NCO/Moody’s Commercial Paper Division, Moody’s, or A-1 or A-2 by S&P; or (d) cash or cash equivalents; (see Appendix B of this prospectus for a description of these ratings);

2.  Up to 50% of the value of the fund’s assets may be invested in other debt securities which are not rated by Moody’s or S&P or, if so rated, are not within the grades or ratings referred to above; and

3.  The fund may engage in options and futures transactions, foreign currency transactions, and swap transactions.

The fund may invest up to 20% of its total assets in equity securities, such as common stocks, rights, warrants or preferred stock.

Ordinarily, the fund will purchase debt securities having call or refunding protection or securities which are not considered by the fund likely to be called or refunded in the near term, in order to preserve initial annual yields to the fund.

The fund may invest in securities of any maturity and does not have a target average duration.

What is a “Bottom-Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

n  Short-Term Trading

The fund may use short-term trading as a means of managing its portfolio to achieve its investment objectives. As used herein, “short-term trading” means selling securities held for a relatively brief period of time, usually less than three months. Short-term trading will be used by the fund primarily in two situations:

(a) Market Developments.  A security may be sold to avoid depreciation in what the fund anticipates will be a market decline (a rise in interest rates), or a security may be purchased in anticipation of a market rise (a decline in interest rates) and later sold; and

(b) Yield Disparities.  A security may be sold and another of comparable quality purchased at approximately the same time in order to take advantage of what the fund believes is a temporary disparity in the normal yield relationship between the two securities (a “yield disparity”).

Short-term trading to take advantage of a yield disparity may be undertaken even if levels of interest rates remain unchanged. Yield disparities occur frequently for reasons not directly related to the investment quality of the respective issues or the general movement of interest rates, but may result from changes in the overall demand for or supply of various types of bonds, changes in the investment objectives or the cash requirements of investors, and the requirements of dealers to correct long or short inventory positions.

Short-term trading techniques will be used principally in connection with higher quality, non-convertible debt securities, which are often better suited for short-term trading because the market in such securities is generally of greater depth and offers greater liquidity than the market in debt securities of lower quality. It is anticipated that short-term trading will be less applicable to any convertible securities which the fund may own, since such securities will usually be purchased when the fund believes that the market value of the underlying equity security is likely to appreciate over a period of time.

The fund will engage in short-term trading if it believes the transactions, net of costs (including commission, if any), will result in improving the appreciation potential or income of its portfolio. Whether any improvement will be realized by short-term trading will depend upon the ability of the fund to evaluate particular securities and anticipate relevant market factors, including interest rate trends and variations from such trends. Short-term trading such as that contemplated by the fund places a premium upon the ability of the fund to obtain relevant information, evaluate it promptly, and take advantage of its evaluations by completing transactions on a favorable basis. By virtue of short-term trading, the fund may engage in greater buying and selling activity than investment companies which are not permitted to employ such a policy in seeking their investment objectives. Such activity can result

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Transamerica Flexible Income

in greater costs of operation than is the case with other investment companies, and risks of loss in portfolio value could be greater. Accordingly, an investment in fund shares may be more speculative than an investment in shares of an investment company which cannot engage in short-term trading.

The sub-adviser may sell the fund’s securities when its expectations regarding market interest rates change or the quality or return changes on investment.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n	prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities
n	extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage

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holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

n  Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

n  Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

n  Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

n  Loans

The fund may invest in certain commercial loans, including loans generally known as “syndicated bank loans,” by acquiring participations or assignments in such loans. The lack of a liquid secondary market for such securities may have an adverse impact on the value of the securities and a fund’s ability to dispose of particular assignments or participations when necessary to meet redemptions of shares or to meet the fund’s liquidity needs. When purchasing a participation, a fund may be subject to the credit risks of both the borrower and the lender that is selling the participation. When purchasing a loan assignment, a fund acquires direct rights against the borrowers, but only to the extent of those held by the assigning lender. Investment in loans through a direct assignment from the financial institution’s interests with respect to a loan may involve additional risks to a fund. It is also unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive regulatory guidance, a fund relies on its sub-adviser’s research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the fund.

n  Structured Notes

The fund may invest in various types of structured instruments, including securities that have demand, tender or put features, or interest rate rest features. Structured instruments may take the form of participation interests or receipts in underlying securities or other assets, and in some cases are backed by a financial institution serving as a liquidity provider. Some of these instruments may have an interest rate swap feature which substitutes a floating or variable interest rate for the fixed interest rate on an underlying security, and some may be asset-backed or mortgage-backed securities. Structured instruments are a type of derivative instrument and the payment and credit qualities of these instruments derive from the assets embedded in the structure from which they are issued.

n  Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be

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illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

n  High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher-quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

n  Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

n  Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

n  Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

n  Active Trading

The fund is actively managed and, under appropriate circumstances, may purchase and sell securities without regard to the length of time held. A high portfolio turnover rate may increase transaction costs and generate a high level of taxable short-term capital gains, both of which may negatively impact the fund’s performance.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Barclays Capital (formerly Lehman Brothers) U.S. Aggregate Index (“BCUSA Index”), a widely recognized, unmanaged index of market performance that covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

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Transamerica Flexible Income

Class A Shares	Quarter Ended	Return
Best Quarter:	9/30/2002		5	.43%
Worst Quarter:	12/31/2008		(12	.66)%

Average Annual Total Returns as of 12/31/08¹

							10 Years or
							Life of
	1 Year			5 Years			Fund2
Class A
Return before taxes		(22	.66)%		(2	.70)%		1	.41%
Return after taxes on distributions3		(24	.20)%		(4	.49)%		(0	.52)%
Return after taxes on distributions and sale of fund shares3		(14	.59)%		(3	.09)%		0	.16%
Class B (Return before taxes only)		(23	.18)%		(2	.58)%		1	.36%
Class C (Return before taxes only)		(20	.07)%		(2	.41)%		(0	.99)%
BCUSA Index (reflects no deduction for fees, expenses or taxes)		5	.24%		4	.65%		5	.63%
Barclays Capital U.S. Government/Credit Bond Index (reflects no deduction for fees, expenses or taxes)4		5	.70%		4	.64%		5	.64%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A commenced operations on June 29, 1987. Class B commenced operations on October 1, 1995. Class C commenced operations on November 11, 2002.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

⁴  This index served as the fund’s benchmark prior to January 1, 2009, at which time it was replaced with the BCUSA Index. This benchmark index change was made to more accurately reflect the principal strategies and policies of the fund.

Note: Prior to March 1, 2004, a different sub-adviser managed this fund, and it employed a different investment program. The performance set forth prior to that date is attributable to the previous sub-adviser.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		4	.75%		None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			5	..00%b		1	..00%c
Annual Fund Operating Expenses (expenses that are deducted from fund assets)d
	Class of Shares
	A			B			C
Management fees		0	.71%		0	.71%		0	.71%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.33%		0	.34%		0	.26%
Total annual fund operating expenses		1	.39%		2	.05%		1	.97%
Expense reductione		0	.00%		0	.00%		0	.00%
Net operating expenses		1	.39%		2	.05%		1	.97%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class B shares are subject to a declining CDSC if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
c	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.

^d  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^e  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.50%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.50%, excluding 12b-1 fees and extraordinary expenses.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	610	$	894	$	1,199	$	2,064
B†	$	708	$	943	$	1,203	$	2,210
C	$	300	$	618	$	1,062	$	2,296
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	610	$	894	$	1,199	$	2,064
B†	$	208	$	643	$	1,103	$	2,210
C	$	200	$	618	$	1,062	$	2,296

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

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Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $250 million	0.725%
Over $250 million up to $350 million	0.675%
Over $350 million	0.625%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.71% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.30%
Over $250 million up to $350 million	0.25%
Over $350 million	0.20%

less 50% of any amount reimbursed pursuant to the fund’s limitation.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Kirk J. Kim
Portfolio Manager (lead)

Kirk J. Kim is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. He holds a B.S. in Finance from the University of Southern California. Mr. Kim has 13 years of investment experience.

Peter O. Lopez
Portfolio Manager (lead)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

Brian W. Westhoff, CFA
Portfolio Manager (lead)

Brian W. Westhoff is a Portfolio Manager at TIM. Prior to joining TIM in 2003, Mr. Westhoff worked as an Equity Research intern with Credit Suisse Asset Management, as a Fixed Income Investment Analyst at St. Paul Companies, and as an Argentine/Oil and Gas Equity Research Intern with Merrill Lynch in Argentina. He holds an M.B.A. from Thunderbird, the Garvin Graduate School of International Management, and received a B.S. in Business Administration from Drake University. Mr. Westhoff has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

Derek S. Brown, CFA
Portfolio Manager (co)

Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.

Greg D. Haendel, CFA
Portfolio Manager (co)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Transamerica Short-Term Bond

Summary of Risks and Returns

Objective

The objective of Transamerica Short-Term Bond is to seek a high level of income consistent with minimal fluctuation in principal value and liquidity.

Principal Strategies and Policies

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve this objective by investing in a diversified portfolio as follows:

n	short-term and intermediate-term investment-grade corporate obligations
n	obligations issued or guaranteed by the U.S. and foreign governments and their agencies and instrumentalities
n	mortgage-backed securities
n	asset-backed securities

TIM may also invest in bank obligations, collateralized mortgage obligations, foreign securities and hybrids. Normally, the fund will invest at least 80% of its net assets in fixed-income securities.

Bank obligations purchased for the fund are limited to U.S. or foreign banks with total assets of $1.5 billion or more. Similarly, savings association obligations purchased for the fund are limited to U.S. savings association obligations issued by U.S. savings banks with total assets of $1.5 billion or more. Foreign government securities purchased for the fund must be U.S. dollar-denominated and issued by foreign governments, agencies or instrumentalities. These foreign obligations must also meet the same quality requirements as U.S. obligations. The commercial paper and other short-term corporate obligations TIM buys for the fund are determined by the fund manager to present minimal credit risks.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n	prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities
n	extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

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Transamerica Short-Term Bond

n  Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

n  Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

n   different accounting and reporting practices

n   less information available to the public

n   less (or different) regulation of securities markets

n   more complex business negotiations

n   less liquidity

n   more fluctuations in prices

n   delays in settling foreign securities transactions

n   higher costs for holding shares (custodial fees)

n   higher transaction costs

n   vulnerability to seizure and taxes

n   political or financial instability and small markets

n   different market trading days

n  Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you the fund’s performance for the past year, and how the fund’s average annual total return compares to the returns of a broad measure of market performance, the Merrill Lynch U.S. Corporate & Government 1-3 Year Index (“MLUSCG 1-3 Year Index”), a widely recognized, unmanaged index of market performance that tracks the market performance of U.S. dollar-denominated, investment grade, corporate debt securities with a remaining term to final maturity of less than 3 years. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

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Year-by-Year Total Return as of 12/31 (%)

Class A Shares

Class A Shares	Quarter Ended	Return
Best Quarter:	3/31/2008		0	.72%
Worst Quarter:	12/31/2008		(2	.36)%

Average Annual Total Returns as of 12/31/08¹

				Life of
	1 Year			Fund2
Class A
Return before taxes		(4	.11)%		(3	.36)%
Return after taxes on distributions3		(5	.43)%		(4	.79)%
Return after taxes on distributions and sale of fund shares3		(2	.65)%		(3	.65)%
Class C (Return before taxes only)		(3	.30)%		(1	.86)%
MLUSCG 1-3 Year Index (reflects no deduction for fees, expenses, or taxes)		4	.69%		5	.55%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.

²  Class A and Class C commenced operations on November 1, 2007.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		2	.50%		None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		Nonea			1	..00%b
Annual Fund Operating Expenses (expenses that are deducted from fund assets)c
	Class of Shares
	A			C
Management fees		0	.62%		0	.62%
Distribution and service (12b-1) fees		0	.35%		1	.00%
Other expenses		0	.14%		0	.14%
Total annual fund operating expenses		1	.11%		1	.76%
Expense reductiond		0	.00%		0	.00%
Net operating expenses		1	.11%		1	.76%

a	Certain purchases of Class A shares in amounts of $1 million or more are subject to a 1% contingent deferred sales charge (“CDSC”) for 24 months after purchase.
b	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.

^c  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^d  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent such expenses exceed 0.85%, excluding 12b-1 fees and certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.85% of average daily net assets, excluding 12b-1 fees and certain extraordinary expenses.

A $25 annual fee is imposed on accounts open for over 2 years that are below a minimum balance. See the section entitled “Shareholder Information — Features and Policies — Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	360	$	594	$	846	$	1,568
C	$	279	$	554	$	954	$	2,073
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	360	$	594	$	846	$	1,568
C	$	179	$	554	$	954	$	2,073

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section titled “Shareholder Information — Investment Adviser” of this prospectus.

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Transamerica Short-Term Bond

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $250 million	0.65%
Over $250 million up to $500 million	0.60%
Over $500 million up to $1 billion	0.575%
Over $1 billion	0.55%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.62% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Up to $250 million	0.25%
Over $250 million up to $500 million	0.20%
From $500 million up to $1 billion	0.175%
Over $1 billion	0.15%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Greg D. Haendel, CFA
Portfolio Manager (lead)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

Derek S. Brown, CFA
Portfolio Manager (co)

Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Transamerica Money Market

Summary of Risks and Returns

Objective

The objective of Transamerica Money Market is to seek maximum current income from money market securities consistent with liquidity and preservation of principal.

Principal Strategies and Policies

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve this objective by investing substantially all of the fund’s assets in accordance with Rule 2a-7 under the Investment Company Act of 1940 in the following U.S. dollar-denominated instruments:

n	short-term corporate obligations, including commercial paper, notes and bonds
n	obligations issued or guaranteed by the U.S. and foreign governments and their agencies and instrumentalities
n	obligations of U.S. and foreign banks, or their foreign branches, and U.S. savings banks
n	repurchase agreements involving any of the securities mentioned above

TIM also seeks to maintain a stable net asset value of $1.00 per share by:

n   investing in securities which TIM believes present minimal credit risk; and

n   maintaining the average maturity of obligations held in the fund’s portfolio at 90 days or less.

Bank obligations purchased for the fund are limited to U.S. or foreign banks with total assets of $1.5 billion or more. Similarly, savings association obligations purchased for the fund are limited to U.S. savings association obligations issued by U.S. savings banks with total assets of $1.5 billion or more. Foreign securities purchased for the fund must be U.S. dollar-denominated and issued by foreign governments, agencies or instrumentalities, or banks that meet the minimum $1.5 billion capital requirement. These foreign obligations must also meet the same quality requirements as U.S. obligations. The commercial paper and other short-term corporate obligations TIM buys for the fund are determined by the fund manager to present minimal credit risks.

To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

An investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. The fund could underperform other short-term debt instruments or money market funds, or you could lose money. This fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

n  Market

A decline in the market value of a fund investment, lack of liquidity in the bond markets or other market events, including the ongoing global financial crisis, could cause the value of your investment in the fund, or its yield, to decline.

n  Interest Rates

The interest rates on short-term obligations held in the fund’s portfolio will vary, rising or falling with short-term interest rates generally. The fund’s yield will tend to lag behind general changes in interest rates.

The ability of the fund’s yield to reflect current market rates will depend on how quickly the obligations in its portfolio mature and how much money is available for investment at current market rates.

n  Credit

The fund is also subject to the risk that the issuer of a security in which it invests (or a guarantor) may fail to pay the principal or interest payments when due. Debt securities also fluctuate in value based on the perceived creditworthiness of issuers. This will lower the return from, and the value of, the security, which will lower the performance of the fund. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Bank Obligations

If the fund concentrates in U.S. bank obligations, the fund will be particularly sensitive to adverse events affecting U.S. banks. Banks are sensitive to changes in money market and general economic conditions, as well as decisions buy regulators that can affect banks’ profitability.

n  Yield Fluctuation

The fund invests in short-term money market instruments. As a result, the amount of income paid to you by the fund will go up or down depending on day-to-day variations in short-term interest rates. Investing in high quality, short-term instruments may result in a lower yield (the income on your investment) than investing in lower quality or longer-term instruments. When interest rates are very low, the fund’s expenses could absorb all or a significant portion of the fund’s income.

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Transamerica Money Market

An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. The fund publishes its top ten holdings on its website at www.transamericafunds.com within two weeks after the end of each month. In addition, the fund publishes all holdings on its website approximately 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and the table demonstrates the fund’s average annual total returns since inception. The bar chart does not reflect the impact of sales charges, which, if reflected, would lower the returns. The table, which shows average annual total returns for each class of shares of the fund, includes deduction of applicable sales charges. Absent limitation of the fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

7-DAY YIELD¹

(as of October 31, 2008)

Class A = 1.92%

Class A Shares	Quarter Ended	Return
Best Quarter:	9/30/2006		1	.15%
Worst Quarter:	9/30/2003		0	.06%

Average Annual Total Returns as of 12/31/08²

							Life of
Return Before Taxes	1 Year			5 Years			Fund3
Class A		1	.98%		2	.77%		2	.16%
Class B		(3	.69)%		2	.00%		1	.65%
Class C		0	.32%		2	.19%		1	.80%

1	Call Customer Service (1-888-233-4339) for the current 7-day yield.
2	Actual returns may depend on the investor’s individual tax situation.

³  Class A and Class B commenced operations on March 1, 2002. Class C commenced operations on November 11, 2002.

Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Shareholder Fees (fees paid directly from your investment)
	Class of Shares
	A			B			C
Maximum sales charge (load) imposed on purchases (as a % of offering price)		None			None			None
Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)		None			5	..00%a		1	..00%b
Annual Fund Operating Expenses (expenses that are deducted from fund assets)c
	Class of Shares
	A			B			C
Management fees		0	.40%		0	.40%		0	.40%
Distribution and service (12b-1) fees		0	.35%		1	.00%		1	.00%
Other expenses		0	.36%		0	.38%		0	.30%
Total annual fund operating expenses		1	.11%		1	.78%		1	.70%
Expense reductiond,e		0	.25%		0	.27%		0	.19%
Net operating expenses		0	.86%		1	.51%		1	.51%

a	Purchases of Class B shares are subject to a declining contingent deferred sales charge (“CDSC”) if redeemed during the first 5 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; 1%-5th year; 0%-6th year and later).
b	Purchases of Class C shares are subject to a 1% CDSC if redeemed during the first 12 months of purchase.

^c  Annual fund operating expenses are based upon the fund’s expenses for the fiscal year ended October 31, 2008, restated to include an adjustment of 0.03% for Class A, Class B and Class C as a result of the U.S. Treasury’s Temporary Guarantee Program for Money Market Funds (the “Program”). The Program expenses were incurred for the period September 19, 2008 through April 30, 2009, and are not covered by the contractual expense cap currently in effect. It is not currently known whether the Program will be extended or if the fund will continue to participate in the Program beyond April 30, 2009.

^d  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010 to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 0.48%, excluding 12b-1 fees and extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.48%, excluding 12b-1 fees and extraordinary expenses.

^e  In order to avoid a negative yield, TAM or any of its affiliates may waive fees or reimburse expenses of one or more classes of the fund. Any such waiver or expense reimbursement would be voluntary, could be

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Transamerica Money Market

discontinued at any time, and is subject in certain circumstances to reimbursement by the fund to TAM or its affiliates. There is no guarantee that the fund will be able to avoid a negative yield.

A $25 annual fee is imposed on accounts open for over 12 months that are below a minimum balance. See the section entitled “Shareholder Information – Features and Policies – Minimum Account Balance” of this prospectus.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

If the shares are redeemed at the end of each period:
Share Class	1 year		3 years		5 years		10 years
A	$	88	$	319	$	571	$	1,295
B†	$	654	$	825	$	1,024	$	1,863
C	$	254	$	508	$	890	$	1,960
If the shares are not redeemed:
Share Class	1 year		3 years		5 years		10 years
A	$	88	$	319	$	571	$	1,295
B†	$	154	$	525	$	924	$	1,863
C	$	154	$	508	$	890	$	1,960

^†  Examples for Class B shares assume conversion to Class A shares eight years after purchase.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the annual rate of 0.40% of the fund’s average daily net assets.

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.40% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.15% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

93

Financial Highlights

The Financial Highlights table is intended to help you understand each fund’s performance for the past five years or since its inception if less than five years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in the fund for the period shown, assuming reinvestment of all dividends and distributions. This information through October 31, 2008 has been derived from financial statements audited by PricewaterhouseCoopers LLP, whose report, along with the fund’s financial statements, is included in the 2008 Annual Report, which is available to you upon request.

For a share of beneficial interest outstanding throughout each period:

	Transamerica Asset Allocation — Growth Portfolio
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$15.46	$13.44	$11.99	$10.75	$9.82
Investment Operations
From net investment income (loss)(a),(b)	0.15	0.23	0.03	0.05	(0.02)
From net realized and unrealized gain (loss) on investments	(6.29)	2.53	1.89	1.38	0.95
Total from investment operations	(6.14)	2.76	1.92	1.43	0.93
Distributions
Net investment income	(0.02)	(0.29)	(0.11)	(0.12)	–
Net realized gains on investments	(0.43)	(0.45)	(0.36)	(0.07)	–
Total distributions	(0.45)	(0.74)	(0.47)	(0.19)	–
Net Asset Value
End of period	$8.87	$15.46	$13.44	$11.99	$10.75
Total Return(c)	(40.75%)	21.35%	16.38%	13.42%	9.47%
Net Assets End of Period	$ 495,257	$ 781,872	$ 502,488	$ 286,412	$ 171,708
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	0.65%	0.64%	0.65%	0.34%	0.43%(g)
Before reimbursement/fee waiver	0.65%	0.64%	0.65%	0.34%	0.43%(g)
Net investment income (loss), to average net assets(b),(e),(f)	1.20%	1.62%	0.22%	0.42%	(0.22%)
Portfolio turnover rate	12%	18%	22%	35%	5%

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Financial Highlights (continued)

	Transamerica Asset Allocation — Growth Portfolio
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$15.13	$13.17	$11.77	$10.57	$9.71
Investment Operations
From net investment income (loss)(a),(b)	0.08	0.14	(0.05)	(0.03)	(0.09)
From net realized and unrealized gain (loss) on investments	(6.15)	2.47	1.85	1.36	0.95
Total from investment operations	(6.07)	2.61	1.80	1.33	0.86
Distributions
Net investment income	–	(0.20)	(0.04)	(0.06)	–
Net realized gains on investments	(0.43)	(0.45)	(0.36)	(0.07)	–
Total distributions	(0.43)	(0.65)	(0.40)	(0.13)	–
Net Asset Value
End of period	$8.63	$15.13	$13.17	$11.77	$10.57
Total Return(c)	(41.15%)	20.54%	15.57%	12.55%	8.96%
Net Assets End of Period	$ 196,817	$ 368,186	$ 288,719	$ 211,904	$ 160,959
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	1.30%	1.29%	1.31%	0.99%	1.05%(g)
Before reimbursement/fee waiver	1.30%	1.29%	1.31%	0.99%	1.05%(g)
Net investment income (loss), to average net assets(b),(e),(f)	0.67%	1.02%	(0.42%)	(0.24%)	(0.82%)
Portfolio turnover rate	12%	18%	22%	35%	5%

	Transamerica Asset Allocation — Growth Portfolio
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$15.13	$13.18	$11.78	$10.57	$9.71
Investment Operations
From net investment income (loss)(a),(b)	0.08	0.14	(0.05)	(0.02)	(0.08)
From net realized and unrealized gain (loss) on investments	(6.14)	2.48	1.85	1.37	0.94
Total from investment operations	(6.06)	2.62	1.80	1.35	0.86
Distributions
Net investment income	–	(0.22)	(0.04)	(0.07)	–
Net realized gains on investments	(0.43)	(0.45)	(0.36)	(0.07)	–
Total distributions	(0.43)	(0.67)	(0.40)	(0.14)	–
Net Asset Value
End of period	$8.64	$15.13	$13.18	$11.78	$10.57
Total Return(c)	(41.08%)	20.60%	15.61%	12.82%	8.86%
Net Assets End of Period	$ 751,881	$ 1,270,635	$ 876,768	$ 528,211	$ 356,543
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	1.26%	1.25%	1.26%	0.93%	0.99%(g)
Before reimbursement/fee waiver	1.26%	1.25%	1.26%	0.93%	0.99%(g)
Net investment income (loss), to average net assets(b),(e),(f)	0.62%	1.03%	(0.38%)	(0.17%)	(0.78%)
Portfolio turnover rate	12%	18%	22%	35%	5%

95

Financial Highlights (continued)

	Transamerica Asset Allocation — Growth Portfolio
	Class R
	October 31,	October 31,	October 31,
	2008	2007	2006(h)
Net Asset Value
Beginning of period	$15.40	$13.43	$12.36
Investment Operations
From net investment income (loss)(a),(b)	0.07	0.13	0.05
From net realized and unrealized gain (loss) on investments	(6.20)	2.60	1.02
Total from investment operations	(6.13)	2.73	1.07
Distributions
Net investment income	–	(0.31)	–
Net realized gains on investments	(0.43)	(0.45)	–
Total distributions	(0.43)	(0.76)	–
Net Asset Value
End of period	$8.84	$15.40	$13.43
Total Return(c)	(40.81%)	21.20%	8.66%(i)
Net Assets End of Period	$ 1,570	$ 884	$ 85
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	0.83%	0.68%	0.67%(j)
Before reimbursement/fee waiver	0.83%	0.68%	0.67%(j)
Net investment income (loss), to average net assets(b),(e),(f)	0.57%	0.94%	1.08%(j)
Portfolio turnover rate	12%	18%	22%(i)

96

Financial Highlights (continued)

	Transamerica Asset Allocation — Moderate Growth Portfolio
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$14.58	$13.05	$11.88	$10.97	$10.13
Investment Operations
From net investment income (loss)(a),(b)	0.26	0.33	0.15	0.16	0.05
From net realized and unrealized gain (loss) on investments	(5.04)	1.86	1.53	1.00	0.87
Total from investment operations	(4.78)	2.19	1.68	1.16	0.92
Distributions
Net investment income	(0.19)	(0.34)	(0.20)	(0.20)	(0.08)
Net realized gains on investments	(0.41)	(0.32)	(0.31)	(0.05)	–
Total distributions	(0.60)	(0.66)	(0.51)	(0.25)	(0.08)
Net Asset Value
End of period	$9.20	$14.58	$13.05	$11.88	$10.97
Total Return(c)	(34.01%)	17.48%	14.59%	10.69%	9.09%
Net Assets End of Period	$ 901,766	$ 1,295,568	$ 914,835	$ 560,231	$ 352,852
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	0.60%	0.60%	0.61%	0.28%	0.32%(k)
Before reimbursement/fee waiver	0.60%	0.60%	0.61%	0.28%	0.32%(k)
Net investment income (loss), to average net assets(b),(e),(f)	2.12%	2.42%	1.17%	1.37%	0.45%
Portfolio turnover rate	13%	19%	21%	26%	3%

	Transamerica Asset Allocation — Moderate Growth Portfolio
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$14.45	$12.94	$11.80	$10.90	$10.09
Investment Operations
From net investment income (loss)(a),(b)	0.19	0.24	0.06	0.08	(0.02)
From net realized and unrealized gain (loss) on investments	(5.01)	1.85	1.52	1.01	0.85
Total from investment operations	(4.82)	2.09	1.58	1.09	0.83
Distributions
Net investment income	(0.10)	(0.26)	(0.13)	(0.14)	(0.02)
Net realized gains on investments	(0.41)	(0.32)	(0.31)	(0.05)	–
Total distributions	(0.51)	(0.58)	(0.44)	(0.19)	(0.02)
Net Asset Value
End of period	$9.12	$14.45	$12.94	$11.80	$10.90
Total Return(c)	(34.44%)	16.69%	13.74%	10.05%	8.25%
Net Assets End of Period	$ 389,429	$ 651,359	$ 549,040	$ 428,677	$ 333,533
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	1.27%	1.27%	1.28%	0.95%	0.97%(k)
Before reimbursement/fee waiver	1.27%	1.27%	1.28%	0.95%	0.97%(k)
Net investment income (loss), to average net assets(b),(e),(f)	1.54%	1.78%	0.51%	0.68%	(0.19%)
Portfolio turnover rate	13%	19%	21%	26%	3%

97

Financial Highlights (continued)

	Transamerica Asset Allocation — Moderate Growth Portfolio
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$14.45	$12.95	$11.80	$10.91	$10.09
Investment Operations
From net investment income (loss)(a),(b)	0.18	0.24	0.07	0.08	(0.02)
From net realized and unrealized gain (loss) on investments	(5.00)	1.85	1.52	1.01	0.86
Total from investment operations	(4.82)	2.09	1.59	1.09	0.84
Distributions
Net investment income	(0.11)	(0.27)	(0.13)	(0.15)	(0.02)
Net realized gains on investments	(0.41)	(0.32)	(0.31)	(0.05)	–
Total distributions	(0.52)	(0.59)	(0.44)	(0.20)	(0.02)
Net Asset Value
End of period	$9.11	$14.45	$12.95	$11.80	$10.91
Total Return(c)	(34.44%)	16.74%	13.87%	10.02%	8.35%
Net Assets End of Period	$ 1,455,012	$ 2,098,087	$ 1,520,489	$ 981,156	$ 675,562
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	1.23%	1.23%	1.24%	0.90%	0.92%(k)
Before reimbursement/fee waiver	1.23%	1.23%	1.24%	0.90%	0.92%(k)
Net investment income (loss), to average net assets(b),(e),(f)	1.49%	1.79%	0.55%	0.74%	(0.15%)
Portfolio turnover rate	13%	19%	21%	26%	3%
	Transamerica Asset Allocation — Moderate Growth Portfolio
	Class R
	October 31,	October 31,	October 31,
	2008	2007	2006(h)
Net Asset Value
Beginning of period	$14.54	$13.05	$12.13
Investment Operations
From net investment income (loss)(a),(b)	0.22	0.24	0.10
From net realized and unrealized gain (loss) on investments	(5.00)	1.93	0.82
Total from investment operations	(4.78)	2.17	0.92
Distributions
Net investment income	(0.17)	(0.36)	–
Net realized gains on investments	(0.41)	(0.32)	–
Total distributions	(0.58)	(0.68)	–
Net Asset Value
End of period	$9.18	$14.54	$13.05
Total Return(c)	(34.08%)	17.31%	7.58%(i)
Net Assets End of Period	$ 1,969	$ 1,983	$ 54
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	0.76%	0.67%	0.66%(j)
Before reimbursement/fee waiver	0.76%	0.67%	0.66%(j)
Net investment income (loss), to average net assets(b),(e),(f)	1.74%	1.80%	2.08%(j)
Portfolio turnover rate	13%	19%	21%(i)

98

Financial Highlights (continued)

	Transamerica Asset Allocation — Moderate Portfolio
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$13.69	$12.64	$11.78	$11.23	$10.42
Investment Operations
From net investment income (loss)(a),(b)	0.33	0.36	0.24	0.27	0.12
From net realized and unrealized gain (loss) on investments	(4.05)	1.40	1.15	0.67	0.84
Total from investment operations	(3.72)	1.76	1.39	0.94	0.96
Distributions
Net investment income	(0.28)	(0.37)	(0.28)	(0.33)	(0.15)
Net realized gains on investments	(0.40)	(0.34)	(0.25)	(0.06)	–
Total distributions	(0.68)	(0.71)	(0.53)	(0.39)	(0.15)
Net Asset Value
End of period	$9.29	$13.69	$12.64	$11.78	$11.23
Total Return(c)	(28.41%)	14.51%	12.22%	8.54%	9.32%
Net Assets End of Period	$ 545,646	$ 665,013	$ 471,902	$ 329,797	$ 232,748
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	0.59%	0.59%	0.58%	0.26%	0.28%
Before reimbursement/fee waiver	0.59%	0.59%	0.58%	0.26%	0.28%
Net investment income (loss), to average net assets(b),(e),(f)	2.79%	2.83%	1.98%	2.31%	1.13%
Portfolio turnover rate	12%	23%	22%	19%	1%

	Transamerica Asset Allocation — Moderate Portfolio
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$13.59	$12.55	$11.70	$11.16	$10.37
Investment Operations
From net investment income (loss)(a),(b)	0.27	0.28	0.16	0.18	0.05
From net realized and unrealized gain (loss) on investments	(4.05)	1.39	1.15	0.68	0.83
Total from investment operations	(3.78)	1.67	1.31	0.86	0.88
Distributions
Net investment income	(0.18)	(0.28)	(0.21)	(0.26)	(0.09)
Net realized gains on investments	(0.40)	(0.34)	(0.25)	(0.06)	–
Total distributions	(0.58)	(0.62)	(0.46)	(0.32)	(0.09)
Net Asset Value
End of period	$9.23	$13.59	$12.55	$11.70	$11.16
Total Return(c)	(28.87%)	13.73%	11.50%	7.81%	8.62%
Net Assets End of Period	$ 223,209	$ 357,175	$ 336,385	$ 295,649	$ 261,772
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	1.25%	1.25%	1.25%	0.92%	0.93%
Before reimbursement/fee waiver	1.25%	1.25%	1.25%	0.92%	0.93%
Net investment income (loss), to average net assets(b),(e),(f)	2.26%	2.21%	1.31%	1.61%	0.48%
Portfolio turnover rate	12%	23%	22%	19%	1%

99

Financial Highlights (continued)

	Transamerica Asset Allocation — Moderate Portfolio
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$13.58	$12.55	$11.70	$11.17	$10.37
Investment Operations
From net investment income (loss)(a),(b)	0.26	0.28	0.16	0.19	0.05
From net realized and unrealized gain (loss) on investments	(4.03)	1.39	1.14	0.67	0.84
Total from investment operations	(3.77)	1.67	1.30	0.86	0.89
Distributions
Net investment income	(0.20)	(0.30)	(0.21)	(0.27)	(0.09)
Net realized gains on investments	(0.40)	(0.34)	(0.25)	(0.06)	–
Total distributions	(0.60)	(0.64)	(0.46)	(0.33)	(0.09)
Net Asset Value
End of period	$9.21	$13.58	$12.55	$11.70	$11.17
Total Return(c)	(28.87%)	13.86%	11.46%	7.85%	8.67%
Net Assets End of Period	$ 876,977	$ 1,159,220	$ 905,061	$ 678,783	$ 518,527
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	1.21%	1.21%	1.22%	0.89%	0.89%
Before reimbursement/fee waiver	1.21%	1.21%	1.22%	0.89%	0.89%
Net investment income (loss), to average net assets(b),(e),(f)	2.21%	2.22%	1.35%	1.67%	0.50%
Portfolio turnover rate	12%	23%	22%	19%	1%
	Transamerica Asset Allocation — Moderate Portfolio
	Class R
	October 31,	October 31,	October 31,
	2008	2007	2006(h)
Net Asset Value
Beginning of period	$13.65	$12.64	$11.86
Investment Operations
From net investment income (loss)(a),(b)	0.28	0.31	0.13
From net realized and unrealized gain (loss) on investments	(4.02)	1.42	0.65
Total from investment operations	(3.74)	1.73	0.78
Distributions
Net investment income	(0.23)	(0.38)	–
Net realized gains on investments	(0.40)	(0.34)	–
Total distributions	(0.63)	(0.72)	–
Net Asset Value
End of period	$9.28	$13.65	$12.64
Total Return(c)	(28.57%)	14.31%	6.58%(i)
Net Assets End of Period	$ 959	$ 610	$ 53
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	0.87%	0.72%	0.66%(j)
Before reimbursement/fee waiver	0.87%	0.72%	0.66%(j)
Net investment income (loss), to average net assets(b),(e),(f)	2.37%	2.44%	2.73%(j)
Portfolio turnover rate	12%	23%	22%(i)

100

Financial Highlights (continued)

	Transamerica Asset Allocation — Conservative Portfolio
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$12.40	$11.76	$11.35	$11.07	$10.67
Investment Operations
From net investment income (loss)(a),(b)	0.36	0.38	0.28	0.32	0.17
From net realized and unrealized gain (loss) on investments	(3.21)	0.82	0.80	0.37	0.77
Total from investment operations	(2.85)	1.20	1.08	0.69	0.94
Distributions
Net investment income	(0.32)	(0.24)	(0.35)	(0.22)	(0.51)
Net realized gains on investments	(0.24)	(0.32)	(0.32)	(0.19)	(0.03)
Total distributions	(0.56)	(0.56)	(0.67)	(0.41)	(0.54)
Net Asset Value
End of period	$8.99	$12.40	$11.76	$11.35	$11.07
Total Return(c)	(23.86%)	12.06%	9.90%	6.30%	8.97%
Net Assets End of Period	$ 268,516	$ 242,342	$ 165,071	$ 129,724	$ 99,811
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	0.62%	0.62%	0.60%	0.28%	0.29%(k)
Before reimbursement/fee waiver	0.62%	0.62%	0.60%	0.28%	0.29%(k)
Net investment income (loss), to average net assets(b),(e),(f)	3.22%	3.18%	2.44%	2.85%	1.55%
Portfolio turnover rate	10%	32%	29%	32%	11%

	Transamerica Asset Allocation — Conservative Portfolio
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$12.36	$11.73	$11.32	$11.05	$10.66
Investment Operations
From net investment income (loss)(a),(b)	0.31	0.30	0.20	0.24	0.10
From net realized and unrealized gain (loss) on investments	(3.22)	0.86	0.81	0.38	0.76
Total from investment operations	(2.91)	1.16	1.01	0.62	0.86
Distributions
Net investment income	(0.24)	(0.21)	(0.28)	(0.16)	(0.44)
Net realized gains on investments	(0.24)	(0.32)	(0.32)	(0.19)	(0.03)
Total distributions	(0.48)	(0.53)	(0.60)	(0.35)	(0.47)
Net Asset Value
End of period	$8.97	$12.36	$11.73	$11.32	$11.05
Total Return(c)	(24.36%)	11.34%	9.19%	5.65%	8.21%
Net Assets End of Period	$ 93,268	$ 116,569	$ 110,701	$ 106,449	$ 106,601
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	1.24%	1.25%	1.26%	0.93%	0.92%(k)
Before reimbursement/fee waiver	1.24%	1.25%	1.26%	0.93%	0.92%(k)
Net investment income (loss), to average net assets(b),(e),(f)	2.72%	2.59%	1.78%	2.15%	0.93%
Portfolio turnover rate	10%	32%	29%	32%	11%

101

Financial Highlights (continued)

	Transamerica Asset Allocation — Conservative Portfolio
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of period	$12.35	$11.73	$11.32	$11.05	$10.66
Investment Operations
From net investment income (loss)(a),(b)	0.29	0.30	0.21	0.25	0.10
From net realized and unrealized gain (loss) on investments	(3.19)	0.86	0.80	0.37	0.76
Total from investment operations	(2.90)	1.16	1.01	0.62	0.86
Distributions
Net investment income	(0.25)	(0.22)	(0.28)	(0.16)	(0.44)
Net realized gains on investments	(0.24)	(0.32)	(0.32)	(0.19)	(0.03)
Total distributions	(0.49)	(0.54)	(0.60)	(0.35)	(0.47)
Net Asset Value
End of period	$8.96	$12.35	$11.73	$11.32	$11.05
Total Return(c)	(24.30%)	11.31%	9.25%	5.61%	8.26%
Net Assets End of Period	$ 364,153	$ 336,981	$ 257,675	$ 208,959	$ 182,112
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	1.22%	1.22%	1.23%	0.90%	0.93%(k)
Before reimbursement/fee waiver	1.22%	1.22%	1.23%	0.90%	0.93%(k)
Net investment income (loss), to average net assets(b),(e),(f)	2.61%	2.60%	1.82%	2.21%	0.89%
Portfolio turnover rate	10%	32%	29%	32%	11%
	Transamerica Asset Allocation — Conservative Portfolio
	Class R
	October 31,
	2008	October 31, 2007	October 31, 2006(h)
Net Asset Value
Beginning of period	$12.47	$11.84	$11.30
Investment Operations
From net investment income (loss)(a),(b)	0.35	0.33	0.13
From net realized and unrealized gain (loss) on investments	(3.23)	0.85	0.47
Total from investment operations	(2.88)	1.18	0.60
Distributions
Net investment income	(0.30)	(0.23)	(0.06)
Net realized gains on investments	(0.24)	(0.32)	–
Total distributions	(0.54)	(0.55)	(0.06)
Net Asset Value
End of period	$9.05	$12.47	$11.84
Total Return(c)	(23.98%)	11.89%	5.35%(i)
Net Assets End of Period	$ 1,089	$ 645	$ 53
Ratio and Supplemental Data
Expenses to average net assets:(b),(d)
After reimbursement/fee waiver	0.82%	0.86%	0.66%(j)
Before reimbursement/fee waiver	0.82%	0.86%	0.66%(j)
Net investment income (loss), to average net assets(b),(e),(f)	3.14%	2.71%	3.03%(j)
Portfolio turnover rate	10%	32%	29%(i)

102

Financial Highlights (continued)

	Transamerica Multi-Manager Alternative Strategies Portfolio
	Class A
	October 31,	October 31,
	2008	2007(l)
Net Asset Value
Beginning of period	$10.78	$10.00
Investment Operations
From net investment income (loss)(a)	0.20	0.05
From net realized and unrealized gain (loss) on investments	(2.43)	0.73
Total from investment operations	(2.23)	0.78
Distributions
Net investment income	(0.25)	–
Net realized gains on investments	–	–
Total distributions	(0.25)	–
Net Asset Value
End of period	$8.30	$10.78
Total Return(c)	(21.08%)	7.80%(i)
Net Assets End of Period	$ 97,482	$ 38,870
Ratio and Supplemental Data
Expenses to average net assets:(d)
After reimbursement/fee waiver	0.84%(o)	0.90%(j)
Before reimbursement/fee waiver	0.84%(o)	1.29%(j)
Net investment income (loss), to average net assets(e),(f)	1.98%	0.58%(j)
Portfolio turnover rate	5%	–%(i),(m)
	Transamerica Multi-Manager Alternative Strategies Portfolio
	Class C
	October 31,	October 31,
	2008	2007(l)
Net Asset Value
Beginning of period	$10.72	$10.00
Investment Operations
From net investment income (loss)(a)	0.15	(0.01)
From net realized and unrealized gain (loss) on investments	(2.42)	0.73
Total from investment operations	(2.27)	0.72
Distributions
Net investment income	(0.22)	–
Net realized gains on investments	–	–
Total distributions	(0.22)	–
Net Asset Value
End of period	$8.23	$10.72
Total Return(c)	(21.52%)	7.20%(i)
Net Assets End of Period	$ 89,701	$ 49,306
Ratio and Supplemental Data
Expenses to average net assets:(d)
After reimbursement/fee waiver	1.52%(o)	1.55%(j)
Before reimbursement/fee waiver	1.52%(o)	1.99%(j)
Net investment income (loss), to average net assets(e),(f)	1.53%	(0.07%)(j)
Portfolio turnover rate	5%	–%(i),(m)

103

Financial Highlights (continued)

	Transamerica Multi-Manager International Portfolio
	Class A
	October 31,	October 31,	October 31,
	2008	2007	2006(n)
Net Asset Value
Beginning of period	$13.24	$10.63	$10.00
Investment Operations
From net investment income (loss)(a)	0.27	0.32	(0.04)
From net realized and unrealized gain (loss) on investments	(6.53)	2.87	0.67
Total from investment operations	(6.26)	3.19	0.63
Distributions
Net investment income	(0.32)	(0.58)	–
Net realized gains on investments	(0.09)	–	–
Total distributions	(0.41)	(0.58)	–
Net Asset Value
End of period	$6.57	$13.24	$10.63
Total Return(c)	(48.61%)	31.30%	6.30%(i)
Net Assets End of Period	$ 103,077	$ 178,422	$ 58,142
Ratio and Supplemental Data
Expenses to average net assets:(d)
After reimbursement/fee waiver	0.65%	0.65%	0.80%(j)
Before reimbursement/fee waiver	0.65%	0.65%	0.88%(j)
Net investment income (loss), to average net assets(e),(f)	2.59%	2.78%	(0.67%)(j)
Portfolio turnover rate	38%	1%	1%(i)
	Transamerica Multi-Manager International Portfolio
	Class B
	October 31,	October 31,	October 31,
	2008	2007	2006(n)
Net Asset Value
Beginning of period	$13.13	$10.59	$10.00
Investment Operations
From net investment income (loss)(a)	0.21	0.23	(0.09)
From net realized and unrealized gain (loss) on investments	(6.50)	2.86	0.68
Total from investment operations	(6.29)	3.09	0.59
Distributions
Net investment income	(0.25)	(0.55)	–
Net realized gains on investments	(0.09)	–	–
Total distributions	(0.34)	(0.55)	–
Net Asset Value
End of period	$6.50	$13.13	$10.59
Total Return(c)	(49.04%)	30.32%	5.90%(i)
Net Assets End of Period	$ 15,781	$ 30,060	$ 9,849
Ratio and Supplemental Data
Expenses to average net assets:(d)
After reimbursement/fee waiver	1.42%	1.43%	1.45%(j)
Before reimbursement/fee waiver	1.42%	1.43%	1.69%(j)
Net investment income (loss), to average net assets(e),(f)	1.95%	1.98%	(1.32%)(j)
Portfolio turnover rate	38%	1%	1%(i)

104

Financial Highlights (continued)

	Transamerica Multi-Manager International Portfolio
	Class C
	October 31,	October 31,	October 31,
	2008	2007	2006(n)
Net Asset Value
Beginning of period	$13.13	$10.58	$10.00
Investment Operations
From net investment income (loss)(a)	0.21	0.24	(0.09)
From net realized and unrealized gain (loss) on investments	(6.49)	2.86	0.67
Total from investment operations	(6.28)	3.10	0.58
Distributions
Net investment income	(0.26)	(0.55)	–
Net realized gains on investments	(0.09)	–	–
Total distributions	(0.35)	(0.55)	–
Net Asset Value
End of period	$6.50	$13.13	$10.58
Total Return(c)	(48.98%)	30.45%	5.80%(i)
Net Assets End of Period	$ 128,742	$ 250,419	$ 76,650
Ratio and Supplemental Data
Expenses to average net assets:(d)
After reimbursement/fee waiver	1.31%	1.31%	1.45%(j)
Before reimbursement/fee waiver	1.31%	1.31%	1.53%(j)
Net investment income (loss), to average net assets(e),(f)	2.01%	2.08%	(1.32%)(j)
Portfolio turnover rate	38%	1%	1%(i)

105

Financial Highlights (continued)

	Transamerica Legg Mason Partners All Cap
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$17.08	$18.18	$16.10	$14.80	$13.95
Investment Operations
Net Investment income (loss)(a)	0.12	0.07	0.09	0.06	(0.03)
Net realized and unrealized gain (loss) on investments	(5.73)	1.49	2.55	1.24	0.88
Total from investment operations	(5.61)	1.56	2.64	1.30	0.85
Distributions
Net investment income	–	(0.06)	(0.01)	–(p)	–
Net realized gains on investments	(1.49)	(2.60)	(0.55)	–	–
Total distributions	(1.49)	(2.66)	(0.56)	–(p)	–
Net Asset Value
End of Period/Year	$9.98	$17.08	$18.18	$16.10	$14.80
Total Return(c)	(35.81%)	9.27%	16.74%	8.79%	6.09%
Net Assets End of Period/Year	$ 28,237	$ 49,938	$ 55,622	$ 173,929	$ 438,047
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.55%	1.55%	1.55%	1.32%	1.33%
Before reimbursement/fee waiver	1.59%	1.56%	1.57%	1.32%	1.33%
Net investment income (loss), to average net assets(e)	0.85%	0.42%	0.52%	0.36%	(0.17%)
Portfolio turnover rate	27%	17%	25%	27%	25%

	Transamerica Legg Mason Partners All Cap
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$16.01	$17.24	$15.39	$14.27	$13.53
Investment Operations
Net Investment income (loss)(a)	0.02	(0.03)	(0.03)	(0.09)	(0.11)
Net realized and unrealized gain (loss) on investments	(5.30)	1.40	2.43	1.21	0.85
Total from investment operations	(5.28)	1.37	2.40	1.12	0.74
Distributions
Net investment income	–	–	–(p)	–	–
Net realized gains on investments	(1.49)	(2.60)	(0.55)	–	–
Total distributions	(1.49)	(2.60)	(0.55)	–	–
Net Asset Value
End of Period/Year	$9.24	$16.01	$17.24	$15.39	$14.27
Total Return(c)	(36.18%)	8.57%	15.97%	7.84%	5.48%
Net Assets End of Period/Year	$ 33,670	$ 88,268	$ 109,567	$ 123,494	$ 150,829
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.20%	2.19%	2.20%	2.19%	1.97%
Before reimbursement/fee waiver	2.24%	2.19%	2.21%	2.19%	1.97%
Net investment income (loss), to average net assets(e)	0.20%	(0.22%)	(0.17%)	(0.58%)	(0.80%)
Portfolio turnover rate	27%	17%	25%	27%	25%

106

Financial Highlights (continued)

	Transamerica Legg Mason Partners All Cap
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$16.04	$17.25	$15.39	$14.26	$13.53
Investment Operations
Net Investment income (loss)(a)	0.03	(0.02)	(0.02)	(0.08)	(0.12)
Net realized and unrealized gain (loss) on investments	(5.32)	1.41	2.43	1.21	0.85
Total from investment operations	(5.29)	1.39	2.41	1.13	0.73
Distributions
Net investment income	–	–	–(p)	–	–
Net realized gains on investments	(1.49)	(2.60)	(0.55)	–	–
Total distributions	(1.49)	(2.60)	(0.55)	–	–
Net Asset Value
End of Period/Year	$9.26	$16.04	$17.25	$15.39	$14.26
Total Return(c)	(36.17%)	8.70%	16.04%	7.89%	5.43%
Net Assets End of Period/Year	$ 15,316	$ 35,568	$ 41,340	$ 49,909	$ 65,391
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.15%	2.13%	2.15%	2.15%	1.99%
Before reimbursement/fee waiver	2.15%	2.13%	2.15%	2.15%	1.99%
Net investment income (loss), to average net assets(e)	0.26%	(0.15%)	(0.12%)	(0.53%)	(0.83%)
Portfolio turnover rate	27%	17%	25%	27%	25%

107

Financial Highlights (continued)

	Transamerica Equity
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$12.07	$9.83	$8.87	$7.44	$6.86
Investment Operations
Net Investment income (loss)(a)	(0.01)	(0.05)	(0.07)	(0.02)	(0.07)
Net realized and unrealized gain (loss) on investments	(5.21)	2.29	1.11	1.58	0.65
Total from investment operations	(5.22)	2.24	1.04	1.56	0.58
Distributions
Net realized gains on investments	–	–	(0.08)	(0.13)	–
Total distributions	–	–	(0.08)	(0.13)	–
Net Asset Value
End of Period/Year	$6.85	$12.07	$9.83	$8.87	$7.44
Total Return(c)	(43.25%)	22.79%	11.71%	21.16%	8.45%
Net Assets End of Period/Year	$ 300,140	$ 532,251	$ 500,483	$ 301,635	$ 176,851
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.39%	1.40%	1.51%	1.36%	1.50%
Before reimbursement/fee waiver	1.39%	1.40%	1.51%	1.36%	1.50%
Net investment income (loss), to average net assets(e)	(0.07%)	(0.48%)	(0.70%)	(0.27%)	(0.90%)
Portfolio turnover rate	33%	62%	19%	39%	97%

	Transamerica Equity
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$11.39	$9.35	$8.49	$7.19	$6.68
Investment Operations
Net Investment income (loss)(a)	(0.08)	(0.12)	(0.12)	(0.08)	(0.11)
Net realized and unrealized gain (loss) on investments	(4.89)	2.16	1.06	1.51	0.62
Total from investment operations	(4.97)	2.04	0.94	1.43	0.51
Distributions
Net realized gains on investments	–	–	(0.08)	(0.13)	–
Total distributions	–	–	(0.08)	(0.13)	–
Net Asset Value
End of Period/Year	$6.42	$11.39	$9.35	$8.49	$7.19
Total Return(c)	(43.63%)	21.82%	11.06%	20.03%	7.68%
Net Assets End of Period/Year	$ 59,479	$ 191,007	$ 222,144	$ 49,865	$ 47,928
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.17%	2.17%	2.17%	2.18%	2.20%
Before reimbursement/fee waiver	2.21%	2.21%	2.34%	2.61%	2.72%
Net investment income (loss), to average net assets(e)	(0.87%)	(1.25%)	(1.34%)	(0.99%)	(1.62%)
Portfolio turnover rate	33%	62%	19%	39%	97%

108

Financial Highlights (continued)

	Transamerica Equity
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$11.42	$9.37	$8.50	$7.20	$6.68
Investment Operations
Net Investment income (loss)(a)	(0.07)	(0.11)	(0.12)	(0.08)	(0.11)
Net realized and unrealized gain (loss) on investments	(4.91)	2.16	1.07	1.51	0.63
Total from investment operations	(4.98)	2.05	0.95	1.43	0.52
Distributions
Net realized gains on investments	–	–	(0.08)	(0.13)	–
Total distributions	–	–	(0.08)	(0.13)	–
Net Asset Value
End of Period/Year	$6.44	$11.42	$9.37	$8.50	$7.20
Total Return(c)	(43.61%)	21.88%	11.16%	20.05%	7.78%
Net Assets End of Period/Year	$ 46,676	$ 101,226	$ 97,047	$ 23,656	$ 21,808
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.04%	2.07%	2.10%	2.18%	2.20%
Before reimbursement/fee waiver	2.04%	2.07%	2.10%	2.31%	2.55%
Net investment income (loss), to average net assets(e)	(0.72%)	(1.15%)	(1.27%)	(1.00%)	(1.63%)
Portfolio turnover rate	33%	62%	19%	39%	97%
	Transamerica Equity
	Class T
	October 31,	October 31,	October 31,
	2008	2007	2006(q)
Beginning of year	$33.53	$27.18	$27.10
Investment Operations
Net Investment income (loss)(a)	0.12	–	–(p)
Net realized and unrealized gain (loss) on investments	(14.51)	6.35	0.08
Total from investment operations	(14.39)	6.35	0.08
Net Asset Value
End of Period/Year	$19.14	$33.53	$27.18
Total Return(c)	(42.92%)	23.36%	0.30%(i)
Net Assets End of Period/Year	$ 90,881	$ 183,495	$ 195,420
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.89%	0.91%	0.84%(j)
Before reimbursement/fee waiver	0.89%	0.91%	0.84%(j)
Net investment income (loss), to average net assets(e)	0.42%	0.01%	(0.21%)(j)
Portfolio turnover rate	33%	62%	19%(i)

109

Financial Highlights (continued)

	Transamerica Growth Opportunities
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$11.40	$8.36	$7.85	$6.61	$5.95
Investment Operations
Net Investment income (loss)(a)	(0.06)	(0.09)	(0.07)	(0.02)	(0.03)
Net realized and unrealized gain (loss) on investments	(4.77)	3.13	0.58	1.26	0.69
Total from investment operations	(4.83)	3.04	0.51	1.24	0.66
Net Asset Value
End of Period/Year	$6.57	$11.40	$8.36	$7.85	$6.61
Total Return(c)	(42.37%)	36.20%	6.62%	18.76%	11.09%
Net Assets End of Period/Year	$ 41,005	$ 64,825	$ 56,588	$ 256,559	$ 230,633
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.75%	1.75%	1.72%	1.41%	1.43%
Before reimbursement/fee waiver	1.81%	1.77%	1.72%	1.41%	1.43%
Net investment income (loss), to average net assets(e)	(0.69%)	(1.00%)	(0.89%)	(0.30%)	(0.47%)
Portfolio turnover rate	45%	85%	59%	34%	43%

	Transamerica Growth Opportunities
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$10.72	$7.92	$7.48	$6.37	$5.79
Investment Operations
Net Investment income (loss)(a)	(0.12)	(0.14)	(0.13)	(0.09)	(0.09)
Net realized and unrealized gain (loss) on investments	(4.47)	2.94	0.57	1.20	0.67
Total from investment operations	(4.59)	2.80	0.44	1.11	0.58
Net Asset Value
End of Period/Year	$6.13	$10.72	$7.92	$7.48	$6.37
Total Return(c)	(42.82%)	35.35%	5.88%	17.43%	10.02%
Net Assets End of Period/Year	$ 20,823	$ 65,123	$ 66,098	$ 74,589	$ 77,869
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.40%	2.40%	2.40%	2.40%	2.40%
Before reimbursement/fee waiver	2.46%	2.45%	2.46%	2.61%	2.64%
Net investment income (loss), to average net assets(e)	(1.39%)	(1.66%)	(1.57%)	(1.29%)	(1.44%)
Portfolio turnover rate	45%	85%	59%	34%	43%

110

Financial Highlights (continued)

	Transamerica Growth Opportunities
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$10.74	$7.94	$7.49	$6.38	$5.79
Investment Operations
Net Investment income (loss)(a)	(0.11)	(0.14)	(0.12)	(0.09)	(0.10)
Net realized and unrealized gain (loss) on investments	(4.47)	2.94	0.57	1.20	0.69
Total from investment operations	(4.58)	2.80	0.45	1.11	0.59
Net Asset Value
End of Period/Year	$6.16	$10.74	$7.94	$7.49	$6.38
Total Return(c)	(42.64%)	35.26%	6.01%	17.40%	10.19%
Net Assets End of Period/Year	$ 10,619	$ 22,656	$ 21,688	$ 25,432	$ 28,103
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.34%	2.36%	2.38%	2.40%	2.40%
Before reimbursement/fee waiver	2.34%	2.36%	2.38%	2.54%	2.65%
Net investment income (loss), to average net assets(e)	(1.29%)	(1.61%)	(1.54%)	(1.29%)	(1.58%)
Portfolio turnover rate	45%	85%	59%	34%	43%

111

Financial Highlights (continued)

	Transamerica Small/Mid Cap Value
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$23.78	$17.78	$16.69	$14.32	$12.94
Investment Operations
Net Investment income (loss)(a)	0.21	0.14	0.28	0.03	0.04
Net realized and unrealized gain (loss) on investments	(8.64)	6.30	1.96	2.85	2.56
Total from investment operations	(8.43)	6.44	2.24	2.88	2.60
Distributions
Net investment income	(0.16)	(0.13)	(0.03)	(0.09)	–
Net realized gains on investments	(2.49)	(0.31)	(1.12)	(0.42)	(1.22)
Total distributions	(2.65)	(0.44)	(1.15)	(0.51)	(1.22)
Net Asset Value
End of Period/Year	$12.70	$23.78	$17.78	$16.69	$14.32
Total Return(c)	(39.47%)	36.99%	13.97%	20.41%	20.61%
Net Assets End of Period/Year	$ 199,210	$ 96,667	$ 47,014	$ 386,346	$ 334,763
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.41%	1.41%	1.39%	1.24%	1.32%
Before reimbursement/fee waiver	1.41%	1.41%	1.39%	1.24%	1.32%
Net investment income (loss), to average net assets(e)	1.18%	0.71%	1.61%	0.20%	0.31%
Portfolio turnover rate	48%	22%	21%	42%	81%

	Transamerica Small/Mid Cap Value
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$22.89	$17.12	$16.21	$13.97	$12.73
Investment Operations
Net Investment income (loss)(a)	0.06	0.02	(0.01)	(0.11)	(0.06)
Net realized and unrealized gain (loss) on investments	(8.27)	6.06	2.07	2.77	2.52
Total from investment operations	(8.21)	6.08	2.06	2.66	2.46
Distributions
Net investment income	–	–	(0.03)	–	–
Net realized gains on investments	(2.49)	(0.31)	(1.12)	(0.42)	(1.22)
Total distributions	(2.49)	(0.31)	(1.15)	(0.42)	(1.22)
Net Asset Value
End of Period/Year	$12.19	$22.89	$17.12	$16.21	$13.97
Total Return(c)	(39.85%)	36.09%	13.21%	19.30%	19.85%
Net Assets End of Period/Year	$ 31,716	$ 53,285	$ 47,007	$ 46,410	$ 40,477
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.07%	2.07%	2.10%	2.14%	1.97%
Before reimbursement/fee waiver	2.07%	2.07%	2.10%	2.14%	1.97%
Net investment income (loss), to average net assets(e)	0.34%	0.12%	(0.06%)	(0.70%)	(0.43%)
Portfolio turnover rate	48%	22%	21%	42%	81%

112

Financial Highlights (continued)

	Transamerica Small/Mid Cap Value
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$22.81	$17.09	$16.18	$13.96	$12.73
Investment Operations
Net Investment income (loss)(a)	0.09	0.02	–(p)	(0.12)	(0.01)
Net realized and unrealized gain (loss) on investments	(8.24)	6.05	2.06	2.77	2.46
Total from investment operations	(8.15)	6.07	2.06	2.65	2.45
Distributions
Net investment income	(0.07)	(0.04)	(0.03)	(0.01)	–
Net realized gains on investments	(2.49)	(0.31)	(1.12)	(0.42)	(1.22)
Total distributions	(2.56)	(0.35)	(1.15)	(0.43)	(1.22)
Net Asset Value
End of Period/Year	$12.10	$22.81	$17.09	$16.18	$13.96
Total Return(c)	(39.84%)	36.16%	13.23%	19.22%	19.78%
Net Assets End of Period/Year	$ 95,729	$ 63,856	$ 29,105	$ 21,532	$ 19,678
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.04%	2.04%	2.08%	2.20%	2.07%
Before reimbursement/fee waiver	2.04%	2.04%	2.08%	2.20%	2.07%
Net investment income (loss), to average net assets(e)	0.52%	0.10%	(0.03%)	(0.76%)	(0.02%)
Portfolio turnover rate	48%	22%	21%	42%	81%

113

Financial Highlights (continued)

	Transamerica Convertible Securities
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$15.30	$12.76	$11.56	$11.00	$11.32
Investment Operations
Net Investment income (loss)(a)	0.13	0.10	0.07	0.20	0.21
Net realized and unrealized gain (loss) on investments	(4.92)	3.22	1.33	0.81	0.56
Total from investment operations	(4.79)	3.32	1.40	1.01	0.77
Distributions
Net investment income	(0.10)	(0.11)	(0.07)	(0.20)	(0.22)
Net realized gains on investments	(3.23)	(0.67)	(0.13)	(0.25)	(0.87)
Total distributions	(3.33)	(0.78)	(0.20)	(0.45)	(1.09)
Net Asset Value
End of Period/Year	$7.18	$15.30	$12.76	$11.56	$11.00
Total Return(c)	(38.92%)	27.41%	12.15%	9.24%	7.06%
Net Assets End of Period/Year	$ 10,748	$ 11,276	$ 6,350	$ 209,374	$ 188,049
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.33%	1.33%	1.25%	1.17%	1.20%
Before reimbursement/fee waiver	1.33%	1.33%	1.25%	1.17%	1.20%
Net investment income (loss), to average net assets(e)	1.23%	0.75%	0.59%	1.74%	1.83%
Portfolio turnover rate	91%	92%	69%	87%	157%

	Transamerica Convertible Securities
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$15.22	$12.71	$11.54	$11.00	$11.31
Investment Operations
Net Investment income (loss)(a)	0.04	0.01	–(p)	0.09	0.14
Net realized and unrealized gain (loss) on investments	(4.87)	3.21	1.32	0.80	0.57
Total from investment operations	(4.83)	3.22	1.32	0.89	0.71
Distributions
Net investment income	(0.03)	(0.04)	(0.02)	(0.10)	(0.15)
Net realized gains on investments	(3.23)	(0.67)	(0.13)	(0.25)	(0.87)
Total distributions	(3.26)	(0.71)	(0.15)	(0.35)	(1.02)
Net Asset Value
End of Period/Year	$7.13	$15.22	$12.71	$11.54	$11.00
Total Return(c)	(39.32%)	26.54%	11.47%	8.09%	6.52%
Net Assets End of Period/Year	$ 2,920	$ 6,533	$ 6,651	$ 6,656	$ 6,379
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.02%	1.99%	1.99%	2.15%	1.79%
Before reimbursement/fee waiver	2.02%	1.99%	1.99%	2.15%	1.79%
Net investment income (loss), to average net assets(e)	0.40%	0.10%	–%(m)	0.76%	1.24%
Portfolio turnover rate	91%	92%	69%	87%	157%

114

Financial Highlights (continued)

	Transamerica Convertible Securities
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$15.17	$12.66	$11.50	$10.97	$11.31
Investment Operations
Net Investment income (loss)(a)	0.07	0.02	–(p)	0.08	0.11
Net realized and unrealized gain (loss) on investments	(4.87)	3.20	1.31	0.82	0.57
Total from investment operations	(4.80)	3.22	1.31	0.90	0.68
Distributions
Net investment income	(0.04)	(0.04)	(0.02)	(0.12)	(0.15)
Net realized gains on investments	(3.23)	(0.67)	(0.13)	(0.25)	(0.87)
Total distributions	(3.27)	(0.71)	(0.15)	(0.37)	(1.02)
Net Asset Value
End of Period/Year	$7.10	$15.17	$12.66	$11.50	$10.97
Total Return(c)	(39.24%)	26.69%	11.44%	8.17%	6.33%
Net Assets End of Period/Year	$ 7,070	$ 3,598	$ 3,551	$ 4,465	$ 5,204
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.94%	1.94%	1.94%	2.16%	2.05%
Before reimbursement/fee waiver	1.94%	1.94%	1.94%	2.16%	2.05%
Net investment income (loss), to average net assets(e)	0.72%	0.15%	0.02%	0.73%	0.98%
Portfolio turnover rate	91%	92%	69%	87%	157%

115

Financial Highlights (continued)

	Transamerica Science & Technology
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$5.67	$3.91	$3.82	$3.80	$3.61
Investment Operations
Net Investment income (loss)(a)	(0.04)	(0.05)	(0.03)	0.03	(0.04)
Net realized and unrealized gain (loss) on investments	(2.61)	1.81	0.18	0.02	0.23
Total from investment operations	(2.65)	1.76	0.15	0.05	0.19
Distributions
Net investment income	–	–	–	(0.03)	–
Net realized gains on investments	(0.18)	–	(0.06)	–	–
Total distributions	(0.18)	–	(0.06)	(0.03)	–
Net Asset Value
End of Period/Year	$2.84	$5.67	$3.91	$3.82	$3.80
Total Return(c)	(48.18%)	45.01%	3.78%	1.23%	5.26%
Net Assets End of Period/Year	$ 3,778	$ 7,874	$ 5,616	$ 65,423	$ 119,985
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.53%	1.53%	1.53%	1.32%	1.36%
Before reimbursement/fee waiver	1.70%	1.77%	1.67%	1.32%	1.36%
Net investment income (loss), to average net assets(e)	(1.02%)	(1.03%)	(0.72%)	0.63%	(1.12%)
Portfolio turnover rate	47%	66%	94%	73%	41%

	Transamerica Science & Technology
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$5.40	$3.74	$3.68	$3.68	$3.51
Investment Operations
Net Investment income (loss)(a)	(0.07)	(0.07)	(0.06)	(0.02)	(0.06)
Net realized and unrealized gain (loss) on investments	(2.47)	1.73	0.18	0.02	0.23
Total from investment operations	(2.54)	1.66	0.12	–	0.17
Distributions
Net realized gains on investments	(0.18)	–	(0.06)	–	–
Total distributions	(0.18)	–	(0.06)	–	–
Net Asset Value
End of Period/Year	$2.68	$5.40	$3.74	$3.68	$3.68
Total Return(c)	(48.56%)	44.39%	3.10%	–%(m)	4.84%
Net Assets End of Period/Year	$ 2,094	$ 4,913	$ 4,208	$ 5,316	$ 6,874
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.18%	2.18%	2.18%	2.20%	1.91%
Before reimbursement/fee waiver	2.53%	2.53%	2.57%	2.68%	1.91%
Net investment income (loss), to average net assets(e)	(1.67%)	(1.67%)	(1.58%)	(0.58%)	(1.68%)
Portfolio turnover rate	47%	66%	94%	73%	41%

116

Financial Highlights (continued)

	Transamerica Science & Technology
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$5.39	$3.73	$3.67	$3.67	$3.51
Investment Operations
Net Investment income (loss)(a)	(0.07)	(0.07)	(0.06)	(0.02)	(0.07)
Net realized and unrealized gain (loss) on investments	(2.46)	1.73	0.18	0.02	0.23
Total from investment operations	(2.53)	1.66	0.12	–	0.16
Distributions
Net realized gains on investments	(0.18)	–	(0.06)	–	–
Total distributions	(0.18)	–	(0.06)	–	–
Net Asset Value
End of Period/Year	$2.68	$5.39	$3.73	$3.67	$3.67
Total Return(c)	(48.46%)	44.50%	3.11%	–%(m)	4.56%
Net Assets End of Period/Year	$ 1,417	$ 2,799	$ 2,045	$ 2,779	$ 4,089
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.18%	2.18%	2.18%	2.20%	2.20%
Before reimbursement/fee waiver	2.31%	2.36%	2.35%	2.65%	2.60%
Net investment income (loss), to average net assets(e)	(1.67%)	(1.63%)	(1.57%)	(0.51%)	(1.94%)
Portfolio turnover rate	47%	66%	94%	73%	41%

117

Financial Highlights (continued)

	Transamerica Templeton Global
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$35.83	$29.28	$24.68	$22.57	$21.41
Investment Operations
Net Investment income (loss)(a)	0.33	0.19	0.15	0.21	(0.07)
Net realized and unrealized gain (loss) on investments	(16.19)	6.70	4.45	2.14	1.23
Total from investment operations	(15.86)	6.89	4.60	2.35	1.16
Distributions
Net investment income	(0.34)	(0.34)	–(p)	(0.24)	–
Total distributions	(0.34)	(0.34)	–(p)	(0.24)	–
Net Asset Value
End of Period/Year	$19.63	$35.83	$29.28	$24.68	$22.57
Total Return(c)	(44.68%)	23.74%	18.65%	10.41%	5.41%
Net Assets End of Period/Year	$ 73,721	$ 118,738	$ 117,367	$ 385,504	$ 226,517
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.55%	1.55%	1.55%	1.42%	1.85%
Before reimbursement/fee waiver	1.61%	1.63%	1.62%	1.42%	1.85%
Net investment income (loss), to average net assets(e)	1.13%	0.59%	0.55%	0.85%	(0.31%)
Portfolio turnover rate	28%	30%	55%	79%	140%

	Transamerica Templeton Global
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$33.52	$27.40	$23.24	$21.23	$20.25
Investment Operations
Net Investment income (loss)(a)	0.08	(0.02)	(0.01)	0.02	(0.20)
Net realized and unrealized gain (loss) on investments	(15.14)	6.28	4.17	1.99	1.18
Total from investment operations	(15.06)	6.26	4.16	2.01	0.98
Distributions
Net investment income	(0.05)	(0.14)	–	–(p)	–
Total distributions	(0.05)	(0.14)	–	–(p)	–
Net Asset Value
End of Period/Year	$18.41	$33.52	$27.40	$23.24	$21.23
Total Return(c)	(44.99%)	22.94%	17.90%	9.48%	4.83%
Net Assets End of Period/Year	$ 10,746	$ 63,876	$ 75,711	$ 90,877	$ 117,409
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.20%	2.20%	2.20%	2.20%	2.49%
Before reimbursement/fee waiver	2.44%	2.39%	2.42%	2.41%	2.49%
Net investment income (loss), to average net assets(e)	0.29%	(0.07%)	(0.05%)	0.07%	(0.93%)
Portfolio turnover rate	28%	30%	55%	79%	140%

118

Financial Highlights (continued)

	Transamerica Templeton Global
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$33.47	$27.37	$23.21	$21.21	$20.25
Investment Operations
Net Investment income (loss)(a)	0.12	(0.02)	(0.01)	0.02	(0.15)
Net realized and unrealized gain (loss) on investments	(15.10)	6.27	4.17	1.99	1.11
Total from investment operations	(14.98)	6.25	4.16	2.01	0.96
Distributions
Net investment income	(0.22)	(0.15)	–	(0.01)	–
Total distributions	(0.22)	(0.15)	–	(0.01)	–
Net Asset Value
End of Period/Year	$18.27	$33.47	$27.37	$23.21	$21.21
Total Return(c)	(45.05%)	22.95%	17.87%	9.52%	4.74%
Net Assets End of Period/Year	$ 14,286	$ 31,506	$ 32,341	$ 36,938	$ 48,378
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.20%	2.20%	2.20%	2.20%	2.18%
Before reimbursement/fee waiver	2.26%	2.31%	2.35%	2.38%	2.18%
Net investment income (loss), to average net assets(e)	0.43%	(0.07%)	(0.05%)	0.07%	(0.72%)
Portfolio turnover rate	28%	30%	55%	79%	140%

119

Financial Highlights (continued)

	Transamerica Balanced
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$25.70	$22.05	$19.90	$18.53	$17.43
Investment Operations
Net Investment income (loss)(a)	0.28	0.17	0.12	0.15	0.14
Net realized and unrealized gain (loss) on investments	(8.64)	3.62	2.12	1.41	1.08
Total from investment operations	(8.36)	3.79	2.24	1.56	1.22
Distributions
Net investment income	(0.24)	(0.14)	(0.09)	(0.19)	(0.12)
Net realized gains on investments	(0.66)	–	–	–	–
Total distributions	(0.90)	(0.14)	(0.09)	(0.19)	(0.12)
Net Asset Value
End of Period/Year	$16.44	$25.70	$22.05	$19.90	$18.53
Total Return(c)	(33.55%)	17.28%	11.27%	8.41%	7.03%
Net Assets End of Period/Year	$ 49,917	$ 61,565	$ 55,547	$ 62,440	$ 72,997
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.52%	1.56%	1.58%	1.59%	1.70%
Before reimbursement/fee waiver	1.52%	1.56%	1.58%	1.59%	1.70%
Net investment income (loss), to average net assets(e)	1.27%	0.73%	0.57%	0.75%	0.76%
Portfolio turnover rate	52%	52%	51%	27%	107%

	Transamerica Balanced
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$25.58	$21.98	$19.88	$18.47	$17.39
Investment Operations
Net Investment income (loss)(a)	0.13	0.04	–(p)	0.04	0.04
Net realized and unrealized gain (loss) on investments	(8.58)	3.60	2.12	1.40	1.08
Total from investment operations	(8.45)	3.64	2.12	1.44	1.12
Distributions
Net investment income	(0.10)	(0.04)	(0.02)	(0.03)	(0.04)
Net realized gains on investments	(0.66)	–	–	–	–
Total distributions	(0.76)	(0.04)	(0.02)	(0.03)	(0.04)
Net Asset Value
End of Period/Year	$16.37	$25.58	$21.98	$19.88	$18.47
Total Return(c)	(33.95%)	16.57%	10.65%	7.80%	6.44%
Net Assets End of Period/Year	$ 32,469	$ 96,573	$ 118,286	$ 142,479	$ 170,630
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.15%	2.14%	2.15%	2.14%	2.26%
Before reimbursement/fee waiver	2.15%	2.14%	2.15%	2.14%	2.26%
Net investment income (loss), to average net assets(e)	0.59%	0.15%	0.01%	0.20%	0.19%
Portfolio turnover rate	52%	52%	51%	27%	107%

120

Financial Highlights (continued)

	Transamerica Balanced
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$25.50	$21.91	$19.82	$18.45	$17.39
Investment Operations
Net Investment income (loss)(a)	0.15	0.04	0.01	0.04	(0.01)
Net realized and unrealized gain (loss) on investments	(8.56)	3.59	2.10	1.41	1.11
Total from investment operations	(8.41)	3.63	2.11	1.45	1.10
Distributions
Net investment income	(0.13)	(0.04)	(0.02)	(0.08)	(0.04)
Net realized gains on investments	(0.66)	–	–	–	–
Total distributions	(0.79)	(0.04)	(0.02)	(0.08)	(0.04)
Net Asset Value
End of Period/Year	$16.30	$25.50	$21.91	$19.82	$18.45
Total Return(c)	(33.92%)	16.61%	10.64%	7.85%	6.33%
Net Assets End of Period/Year	$ 17,719	$ 32,569	$ 36,750	$ 43,276	$ 53,990
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.08%	2.11%	2.12%	2.13%	2.28%
Before reimbursement/fee waiver	2.08%	2.11%	2.12%	2.13%	2.28%
Net investment income (loss), to average net assets(e)	0.69%	0.18%	0.03%	0.21%	(0.08%)
Portfolio turnover rate	52%	52%	51%	27%	107%

121

Financial Highlights (continued)

	Transamerica Value Balanced
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$14.38	$13.30	$11.95	$12.11	$11.49
Investment Operations
Net Investment income (loss)(a)	0.30	0.28	0.23	0.24	0.18
Net realized and unrealized gain (loss) on investments	(4.74)	1.41	1.54	0.69	0.61
Total from investment operations	(4.44)	1.69	1.77	0.93	0.79
Distributions
Net investment income	(0.31)	(0.23)	(0.24)	(0.25)	(0.17)
Net realized gains on investments	(0.72)	(0.38)	(0.18)	(0.84)	–
Total distributions	(1.03)	(0.61)	(0.42)	(1.09)	(0.17)
Net Asset Value
End of Period/Year	$8.91	$14.38	$13.30	$11.95	$12.11
Total Return(c)	(32.94%)	13.11%	15.09%	7.79%	6.99%
Net Assets End of Period/Year	$ 18,666	$ 32,485	$ 32,666	$ 32,934	$ 37,393
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.55%	1.55%	1.55%	1.55%	1.55%
Before reimbursement/fee waiver	1.56%	1.58%	1.63%	1.59%	1.63%
Net investment income (loss), to average net assets(e)	2.51%	2.06%	1.84%	2.03%	1.50%
Portfolio turnover rate	50%	42%	42%	57%	122%

	Transamerica Value Balanced
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$14.32	$13.25	$11.91	$12.07	$11.46
Investment Operations
Net Investment income (loss)(a)	0.22	0.19	0.15	0.17	0.10
Net realized and unrealized gain (loss) on investments	(4.72)	1.41	1.53	0.68	0.61
Total from investment operations	(4.50)	1.60	1.68	0.85	0.71
Distributions
Net investment income	(0.22)	(0.15)	(0.16)	(0.17)	(0.10)
Net realized gains on investments	(0.72)	(0.38)	(0.18)	(0.84)	–
Total distributions	(0.94)	(0.53)	(0.34)	(1.01)	(0.10)
Net Asset Value
End of Period/Year	$8.88	$14.32	$13.25	$11.91	$12.07
Total Return(c)	(33.37%)	12.40%	14.28%	7.13%	6.23%
Net Assets End of Period/Year	$ 6,414	$ 17,508	$ 20,405	$ 24,072	$ 29,409
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.20%	2.20%	2.20%	2.20%	2.20%
Before reimbursement/fee waiver	2.30%	2.27%	2.28%	2.27%	2.30%
Net investment income (loss), to average net assets(e)	1.83%	1.43%	1.20%	1.39%	0.81%
Portfolio turnover rate	50%	42%	42%	57%	122%

122

Financial Highlights (continued)

	Transamerica Value Balanced
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$14.31	$13.25	$11.91	$12.07	$11.46
Investment Operations
Net Investment income (loss)(a)	0.22	0.19	0.15	0.17	0.11
Net realized and unrealized gain (loss) on investments	(4.72)	1.41	1.53	0.69	0.60
Total from investment operations	(4.50)	1.60	1.68	0.86	0.71
Distributions
Net investment income	(0.22)	(0.16)	(0.16)	(0.18)	(0.10)
Net realized gains on investments	(0.72)	(0.38)	(0.18)	(0.84)	–
Total distributions	(0.94)	(0.54)	(0.34)	(1.02)	(0.10)
Net Asset Value
End of Period/Year	$8.87	$14.31	$13.25	$11.91	$12.07
Total Return(c)	(33.33%)	12.40%	14.33%	7.18%	6.31%
Net Assets End of Period/Year	$ 5,833	$ 11,674	$ 11,316	$ 11,926	$ 14,285
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.13%	2.17%	2.20%	2.16%	2.20%
Before reimbursement/fee waiver	2.13%	2.17%	2.20%	2.16%	2.39%
Net investment income (loss), to average net assets(e)	1.92%	1.44%	1.19%	1.43%	0.78%
Portfolio turnover rate	50%	42%	42%	57%	122%

123

Financial Highlights (continued)

	Transamerica High Yield Bond
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$9.12	$9.19	$8.97	$9.37	$9.08
Investment Operations
Net Investment income (loss)(a)	0.64	0.60	0.61	0.56	0.52
Net realized and unrealized gain (loss) on investments	(2.83)	(0.07)	0.19	(0.37)	0.29
Total from investment operations	(2.19)	0.53	0.80	0.19	0.81
Distributions
Net investment income	(0.62)	(0.60)	(0.58)	(0.59)	(0.52)
Total distributions	(0.62)	(0.60)	(0.58)	(0.59)	(0.52)
Net Asset Value
End of Period/Year	$6.31	$9.12	$9.19	$8.97	$9.37
Total Return(c)	(25.46%)	5.90%	9.27%	2.06%	9.23%
Net Assets End of Period/Year	$ 24,506	$ 35,147	$ 43,514	$ 336,340	$ 309,223
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.16%	1.15%	1.16%	1.05%	1.08%
Before reimbursement/fee waiver	1.16%	1.15%	1.16%	1.05%	1.08%
Net investment income (loss), to average net assets(e)	7.65%	6.45%	6.77%	6.04%	5.67%
Portfolio turnover rate	38%	80%	73%	71%	49%

	Transamerica High Yield Bond
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$9.11	$9.18	$8.97	$9.37	$9.08
Investment Operations
Net Investment income (loss)(a)	0.58	0.53	0.55	0.48	0.46
Net realized and unrealized gain (loss) on investments	(2.83)	(0.06)	0.19	(0.37)	0.29
Total from investment operations	(2.25)	0.47	0.74	0.11	0.75
Distributions
Net investment income	(0.56)	(0.54)	(0.53)	(0.51)	(0.46)
Total distributions	(0.56)	(0.54)	(0.53)	(0.51)	(0.46)
Net Asset Value
End of Period/Year	$6.30	$9.11	$9.18	$8.97	$9.37
Total Return(c)	(26.04%)	5.19%	8.53%	1.21%	8.52%
Net Assets End of Period/Year	$ 9,091	$ 21,370	$ 27,753	$ 37,006	$ 49,422
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.85%	1.83%	1.83%	1.85%	1.72%
Before reimbursement/fee waiver	1.85%	1.83%	1.83%	1.85%	1.72%
Net investment income (loss), to average net assets(e)	6.83%	5.77%	6.12%	5.18%	5.05%
Portfolio turnover rate	38%	80%	73%	71%	49%

124

Financial Highlights (continued)

	Transamerica High Yield Bond
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$9.10	$9.17	$8.96	$9.36	$9.08
Investment Operations
Net Investment income (loss)(a)	0.58	0.53	0.55	0.47	0.46
Net realized and unrealized gain (loss) on investments	(2.82)	(0.06)	0.19	(0.36)	0.28
Total from investment operations	(2.24)	0.47	0.74	0.11	0.74
Distributions
Net investment income	(0.56)	(0.54)	(0.53)	(0.51)	(0.46)
Total distributions	(0.56)	(0.54)	(0.53)	(0.51)	(0.46)
Net Asset Value
End of Period/Year	$6.30	$9.10	$9.17	$8.96	$9.36
Total Return(c)	(25.89%)	5.21%	8.54%	1.21%	8.41%
Net Assets End of Period/Year	$ 5,429	$ 10,160	$ 11,317	$ 15,880	$ 25,379
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.80%	1.83%	1.83%	1.88%	1.78%
Before reimbursement/fee waiver	1.80%	1.83%	1.83%	1.88%	1.78%
Net investment income (loss), to average net assets(e)	6.93%	5.77%	6.12%	5.11%	4.95%
Portfolio turnover rate	38%	80%	73%	71%	49%

125

Financial Highlights (continued)

	Transamerica Flexible Income
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$9.14	$9.38	$9.31	$9.68	$10.21
Investment Operations
Net Investment income (loss)(a)	0.44	0.48	0.43	0.37	0.38
Net realized and unrealized gain (loss) on investments	(1.89)	(0.25)	0.05	(0.32)	0.14
Total from investment operations	(1.45)	0.23	0.48	0.05	0.52
Distributions
Net investment income	(0.47)	(0.47)	(0.41)	(0.38)	(0.38)
Net realized gains on investments	–	–	–	–	(0.63)
Return of capital	–	–	–	(0.04)	(0.04)
Total distributions	(0.47)	(0.47)	(0.41)	(0.42)	(1.05)
Net Asset Value
End of Period/Year	$7.22	$9.14	$9.38	$9.31	$9.68
Total Return(c)	(16.57%)	2.42%	5.34%	0.47%	5.72%
Net Assets End of Period/Year	$ 13,360	$ 15,409	$ 17,005	$ 140,203	$ 80,201
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.39%	1.40%	1.47%	1.25%	1.43%
Before reimbursement/fee waiver	1.39%	1.40%	1.47%	1.25%	1.43%
Net investment income (loss), to average net assets(e)	5.12%	5.12%	4.64%	3.85%	3.89%
Portfolio turnover rate	98%	108%	110%	58%	169%

	Transamerica Flexible Income
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$9.14	$9.39	$9.32	$9.68	$10.20
Investment Operations
Net Investment income (loss)(a)	0.38	0.42	0.38	0.29	0.32
Net realized and unrealized gain (loss) on investments	(1.88)	(0.26)	0.06	(0.32)	0.15
Total from investment operations	(1.50)	0.16	0.44	(0.03)	0.47
Distributions
Net investment income	(0.41)	(0.41)	(0.37)	(0.29)	(0.32)
Net realized gains on investments	–	–	–	–	(0.63)
Return of capital	–	–	–	(0.04)	(0.04)
Total distributions	(0.41)	(0.41)	(0.37)	(0.33)	(0.99)
Net Asset Value
End of Period/Year	$7.23	$9.14	$9.39	$9.32	$9.68
Total Return(c)	(17.03%)	1.66%	4.81%	(0.36%)	5.13%
Net Assets End of Period/Year	$ 8,628	$ 17,007	$ 23,501	$ 32,560	$ 45,338
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	2.05%	2.04%	2.08%	2.08%	2.03%
Before reimbursement/fee waiver	2.05%	2.04%	2.08%	2.08%	2.03%
Net investment income (loss), to average net assets(e)	4.42%	4.48%	4.08%	3.02%	3.25%
Portfolio turnover rate	98%	108%	110%	58%	169%

126

Financial Highlights (continued)

	Transamerica Flexible Income
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$9.12	$9.36	$9.30	$9.67	$10.20
Investment Operations
Net Investment income (loss)(a)	0.39	0.42	0.39	0.29	0.33
Net realized and unrealized gain (loss) on investments	(1.88)	(0.25)	0.04	(0.33)	0.13
Total from investment operations	(1.49)	0.17	0.43	(0.04)	0.46
Distributions
Net investment income	(0.42)	(0.41)	(0.37)	(0.29)	(0.32)
Net realized gains on investments	–	–	–	–	(0.63)
Return of capital	–	–	–	(0.04)	(0.04)
Total distributions	(0.42)	(0.41)	(0.37)	(0.33)	(0.99)
Net Asset Value
End of Period/Year	$7.21	$9.12	$9.36	$9.30	$9.67
Total Return(c)	(16.98%)	1.81%	4.74%	(0.40%)	5.02%
Net Assets End of Period/Year	$ 5,981	$ 8,982	$ 12,519	$ 13,439	$ 19,675
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.97%	2.00%	2.07%	2.11%	2.10%
Before reimbursement/fee waiver	1.97%	2.00%	2.07%	2.11%	2.10%
Net investment income (loss), to average net assets(e)	4.52%	4.51%	4.15%	2.99%	3.37%
Portfolio turnover rate	98%	108%	110%	58%	169%

127

Financial Highlights (continued)

	Transamerica Short-Term Bond
	Class A(r)	Class C(r)
	October 31,	October 31,
	2008	2008
Net Asset Value
Beginning of Period	$10.00	$10.00
Investment Operations
Net Investment income (loss)(a)	0.38	0.32
Net realized and unrealized gain (loss) on investments	(0.54)	(0.55)
Total from investment operations	(0.16)	(0.23)
Distributions
Net investment income	(0.40)	(0.35)
Total distributions	(0.40)	(0.35)
Net Asset Value
End of Period	$9.44	$9.42
Total Return(c)	(1.70%)(i)	(2.43%)(i)
Net Assets End of Period	$ 5,663	$ 7,263
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.11%(j)	1.76%(j)
Before reimbursement/fee waiver	1.11%(j)	1.76%(j)
Net investment income (loss), to average net assets(e)	3.92%(j)	3.28%(j)
Portfolio turnover rate	67%(i)	67%(i)

128

Financial Highlights (continued)

	Transamerica Money Market
	Class A
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$1.00	$1.00	$1.00	$1.00	$1.00
Investment Operations
Net Investment income (loss)(a)	0.02	0.05	0.04	0.02	–(p)
Net realized and unrealized gain on investments	–(p)	–	–	–	–
Total from investment operations	0.02	0.05	0.04	0.02	–(p)
Distributions
Net investment income	(0.02)	(0.05)	(0.04)	(0.02)	–(p)
Net realized gains on investments	–	–(p)	–	–	–
Total distributions	(0.02)	(0.05)	(0.04)	(0.02)	–(p)
Net Asset Value
End of Period/Year	$1.00	$1.00	$1.00	$1.00	$1.00
Total Return(c)	2.52%	4.61%	4.09%	2.10%	0.42%
Net Assets End of Period/Year	$ 142,456	$ 95,766	$ 78,716	$ 150,804	$ 185,311
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.83%	0.83%	0.83%	0.83%	0.83%
Before reimbursement/fee waiver	1.08%	1.20%	1.23%	1.05%	1.19%
Net investment income (loss), to average net assets(e)	2.40%	4.54%	3.98%	2.08%	0.45%

	Transamerica Money Market
	Class B
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$1.00	$1.00	$1.00	$1.00	$1.00
Investment Operations
Net Investment income (loss)(a)	0.02	0.04	0.03	0.02	–(p)
Net realized and unrealized gain on investments	–(p)	–	–	–	–
Total from investment operations	0.02	0.04	0.03	0.02	–(p)
Distributions
Net investment income	(0.02)	(0.04)	(0.03)	(0.02)	–(p)
Net realized gains on investments	–	–(p)	–	–	–
Total distributions	(0.02)	(0.04)	(0.03)	(0.02)	–(p)
Net Asset Value
End of Period/Year	$1.00	$1.00	$1.00	$1.00	$1.00
Total Return(c)	1.83%	3.92%	3.41%	1.60%	0.14%
Net Assets End of Period/Year	$ 40,110	$ 23,324	$ 25,727	$ 31,647	$ 40,203
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.48%	1.48%	1.48%	1.32%	1.10%
Before reimbursement/fee waiver	1.75%	1.83%	1.80%	1.79%	1.81%
Net investment income (loss), to average net assets(e)	1.75%	3.87%	3.50%	1.57%	0.13%

129

Financial Highlights (continued)

	Transamerica Money Market
	Class C
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005	2004
Net Asset Value
Beginning of year	$1.00	$1.00	$1.00	$1.00	$1.00
Investment Operations
Net Investment income (loss)(a)	0.02	0.04	0.03	0.02	–(p)
Net realized and unrealized gain on investments	–(p)	–	–	–	–
Total from investment operations	0.02	0.04	0.03	0.02	–(p)
Distributions
Net investment income	(0.02)	(0.04)	(0.03)	(0.02)	–(p)
Net realized gains on investments	–	–(p)	–	–	–
Total distributions	(0.02)	(0.04)	(0.03)	(0.02)	–(p)
Net Asset Value
End of Period/Year	$1.00	$1.00	$1.00	$1.00	$1.00
Total Return(c)	1.86%	3.92%	3.16%	1.87%	0.14%
Net Assets End of Period/Year	$ 59,991	$ 19,638	$ 17,286	$ 15,997	$ 22,277
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.48%	1.48%	1.48%	1.26%	0.98%
Before reimbursement/fee waiver	1.67%	1.73%	1.82%	1.89%	1.96%
Net investment income (loss), to average net assets(e)	1.65%	3.88%	3.40%	1.61%	0.43%

^(a) Calculation is based on average shares outstanding.

^(b) On November 15, 2005, the Fund was authorized under the 12b-1 plan to pay fees on each class up to the following limits: Class A 0.35%, Class B 1.00%, Class C 1.00%, Class R 0.50%.

^(c) Total return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase.

^(d) Does not include expenses of the underlying investment companies in which the Fund invests.

^(e) Includes Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B, Class C, Class R and Class T, respectively.

^(f) Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

^(g) Includes recaptured expenses by the investment adviser. The impact of recaptured expenses was 0.05%, 0.05% and 0.05% for Class A, Class B, and Class C, respectively.

^(h) Commenced operations on June 15, 2006.

⁽ⁱ⁾ Not annualized.

^(j) Annualized.

^(k) Includes recaptured expenses by the investment adviser. The impact of recaptured expenses was 0.01%, 0.01% and 0.01% for Class A, Class B, and Class C, respectively.

^(l) Commenced operations on December 28, 2006.

^(m) Rounds to less than 0.01% or (0.01%).

⁽ⁿ⁾ Commenced operations on March 1, 2006.

^(o) Includes recaptured expenses by the investment adviser. The impact of recaptured expenses was 0.07% and 0.09% for Class A and Class C, respectively.

^(p) Rounds to less than ($0.01) or $0.01.

^(q) Commenced operations on October 27, 2006.

^(r) Commenced operations on November 1, 2007.

130

Section B — Description of Certain Underlying Funds

This section describes the underlying funds in which some or all of the asset allocation series may invest and that are not otherwise discussed in this prospectus. This section summarizes their respective investment objectives and principal investment strategies and risks. Additional information about the underlying funds’ investment strategies and risks may be found in the section entitled “More on Strategies and Risks,” in Appendix A of this prospectus. Further information about these underlying funds is contained in these underlying funds’ prospectuses, available at www.transamericafunds.com.

n   Transamerica AllianceBernstein International Value seeks long-term growth of capital by investing primarily in equity securities of established companies from a variety of industries and developed countries. The fund primarily invests in issuers that are economically tied to a number of countries throughout the world and expects to be invested in more than three different foreign countries. The fund’s investment policies emphasize investments that are determined to be undervalued by the fund’s sub-adviser. The principal risks of investing in this underlying fund are: market risk; stock risk; value investing risk; foreign securities risk; currency risk; liquidity risk; derivatives risk; short sales risk; repurchase agreements risk; currency hedging risk; warrants and rights risk; securities lending risk; convertible securities risk; and leveraging risk.

n   Transamerica American Century Large Company Value seeks long-term capital growth with income as a secondary goal by investing principally in U.S. large-capitalization companies. The fund’s sub-adviser considers large capitalization companies to be companies that comprise the Russell 1000^®Index. Under normal market conditions, the fund will have at least 80% of its net assets in equity securities of companies comprising the Russell 1000^®Index. The fund’s sub-adviser uses a value investment strategy that looks for companies temporarily out of favor in the market. The principal risks of investing in this underlying fund are: market risk; stock risk; value investing risk; foreign securities risk; currency risk; fixed-income securities risk; and derivatives risk.

n   Transamerica Bjurman, Barry Micro Emerging Growth seeks capital appreciation by investing, under normal market conditions, at least 80% of its net assets in common stocks of emerging growth U.S. companies whose total market capitalization at the time of investment is generally between $30 million and $1 billion, and which, in the opinion of the sub-adviser, have superior earnings growth characteristics. The fund’s sub-adviser uses quantitative models that emphasize both growth and value attributes. The principal risks of investing in this underlying fund are: market risk; stock risk; small- or micro-sized companies risk; risk of investing aggressively; growth stock risk; industry focus risk; and emerging growth companies risk.

n   Transamerica BlackRock Global Allocation seeks to provide high total investment return through a fully managed investment policy utilizing U.S. and foreign equity securities, debt, and money market securities, the combination of which may be varied from time to time both with respect to types of securities and markets. The fund will invest in issuers located in a number of countries throughout the world, and it generally seeks diversification across markets, industries and issuers as one of its strategies to reduce volatility. The principal risks of investing in this underlying fund are: market risk; stock risk; foreign securities risk; currency risk; small- or medium-sized companies risk; liquidity risk; preferred stock risk; convertible securities risk; fixed-income securities risk; distressed securities risk; commodities risk; high-yield debt securities risk; sovereign debt risk; precious metal related securities risk; real estate securities risk; warrants and rights risk; short sales risk; currency hedging risk; derivatives risk; securities lending risk; emerging markets risk; and loans risk.

n   Transamerica BlackRock Large Cap Value seeks long-term capital growth by investing primarily in a diversified portfolio of equity securities of large cap companies located in the United States. Under normal circumstances, the fund invests at least 80% of its net assets in equity securities of large cap companies. The fund considers a large cap company to be one that, at the time of purchase, has a market capitalization equal to or greater than a company in the top 80% of the companies that comprise the Russell 1000^®Index. The principal risks of investing in this underlying fund are: market risk; stock risk; value investing risk; foreign securities risk; currency risk; securities lending risk; convertible securities risk; preferred stock risk; and fixed-income securities risk.

n   Transamerica BlackRock Natural Resources seeks to achieve long-term capital growth and to protect the purchasing power of shareholders’ capital by investing in a portfolio of equity securities of domestic and foreign companies with substantial natural resource assets. Under normal circumstances, the fund will invest at least 80% of its net assets in equities of companies with substantial natural resource assets, or in securities the value of which is related to the market value of some natural resource asset. The fund may invest in both U.S. and non-U.S. companies of any market capitalization. The principal risks of investing in this underlying fund are: market risk; stock risk; asset-based securities-natural resources risk; foreign securities risk; currency risk; emerging markets risk; small-or medium-sized companies risk; preferred stock risk; convertible securities risk; value investing risk; derivatives risk; leveraging risk; liquidity risk; country, sector or industry focus risk; and non-diversification risk.

n   Transamerica BNY Mellon Market Neutral Strategy seeks investment returns exceeding the 3-month U.S. Treasury Bill from a broadly diversified portfolio of U.S. stocks while neutralizing the general risks associated with stock market investing. The sub-adviser seeks to achieve this objective by using a market neutral strategy and investing, under normal circumstances, at least 80% of the fund’s assets in equity securities (excluding cash collateral). The sub-adviser seeks to construct a diversified portfolio that has limited exposure to the U.S. equity general market risk and near neutral exposure to specific industries, sectors and capitalization ranges. The principal risks of investing in this underlying fund are: market risk; stock risk; short sales risk; derivatives risk; foreign securities risk; currency risk; leveraging risk; and portfolio turnover risk.

n   Transamerica Clarion Global Real Estate Securities seeks long-term total return from investments principally in equity securities of real estate companies that include common stocks and convertible securities. Under normal conditions, the fund will invest at least 80% of its net assets in a portfolio of issuers

131

Section B — Description of Certain Underlying Funds

that are principally engaged in the real estate industry. Total return consists of realized and unrealized capital gains and losses plus income. The fund’s portfolio will be composed of investments in issuers that are economically tied to at least three different countries, including the United States. The principal risks of investing in this underlying fund are: market risk; stock risk; foreign securities risk; currency risk; real estate securities risk; REITs risk; small- or medium-sized companies risk; portfolio turnover risk; convertible securities risk; fixed-income securities risk; mortgage-related securities risk; and non-diversification risk.

n   Transamerica Evergreen Health Care seeks long-term capital appreciation by investing, under normal circumstances, at least 80% of the fund’s net assets in the equity securities of health care companies. These include, but are not limited to, pharmaceutical companies, biotechnology companies, medical device and supply companies, managed care companies and health care information and service providers. The principal risks of investing in this underlying fund are: market risk; stock risk; health care sector risk; foreign securities risk; currency risk; small- or medium-sized companies risk; derivatives risk; currency hedging risk; short sales risk; non-diversification risk; and portfolio turnover risk.

n   Transamerica Evergreen International Small Cap seeks capital growth by investing principally in equity securities of small companies located in at least three countries, one of which may be the United States. The fund normally invests at least 80% of its net assets in equity securities such as common stocks, convertible securities, preferred stocks, ADRs, GDRs and EDRs of small cap issuers. The fund seeks to invest in equity securities of issuers that the sub-adviser believes are well managed and positioned to achieve above-average increases in revenue and earnings and have strong prospects for continued revenue growth. The principal risks of investing in this underlying fund are: market risk; stock risk; foreign securities risk; currency risk; emerging markets risk; small- or medium-sized companies risk; growth stock risk; value investing risk; fixed-income securities risk; preferred stock risk; convertible securities risk; real estate securities risk; REITs risk; derivatives risk; and currency hedging risk.

n   Transamerica Federated Market Opportunity seeks to provide moderate capital appreciation and high current income by investing, under normal market conditions, in domestic and foreign securities that the fund’s sub-adviser deems to be undervalued or out-of-favor or securities that it believes are attractive due to their income-producing potential. The principal risks of investing in this underlying fund are: market risk; stock risk; value investing risk; foreign securities risk; currency risk; emerging markets risk; fixed-income securities risk; high-yield debt securities risk; country, sector or industry focus risk; convertible securities risk; REITs risk; currency hedging risk; hybrid instruments risk; commodities risk; liquidity risk; leveraging risk; derivatives risk; investment companies risk; exchange-traded funds risk; and portfolio turnover risk.

n   Transamerica JPMorgan International Bond seeks high total return by investing in high-quality, non-dollar denominated government and corporate debt securities of foreign issuers. The sub-adviser seeks to achieve this objective by investing at least 80% of the fund’s net assets in high-quality bonds. The sub-adviser determines whether to buy and sell securities using a combination of fundamental research and bond currency valuation models. The principal risks of investing in this underlying fund are: market risk; fixed-income securities risk; foreign securities risk; currency risk; emerging markets risk; country, sector or industry focus risk; derivatives risk; currency hedging risk; liquidity risk; and non-diversification risk.

n   Transamerica JPMorgan Mid Cap Value seeks growth from capital appreciation by investing primarily (at least 80% of net assets under normal conditions) in a broad portfolio of common stocks of companies with market capitalizations of $1 billion to $20 billion at the time of purchase that the fund’s sub-adviser believes to be undervalued. The principal risks of investing in this underlying fund are: market risk; stock risk; foreign securities risk; currency risk; value investing risk; derivatives risk; REITs risk; preferred stock risk; convertible securities risk; and medium-sized companies risk.

n   Transamerica Jennison Growth seeks long-term growth of capital by investing substantially all of its total assets in equity securities (principally common stocks, preferred stocks, warrants, rights and depositary receipts) of U.S. companies with market capitalizations of at least $1 billion and above average prospects for growth. The principal risks of investing in this underlying fund are: market risk; stock risk; growth stock risk; medium-sized companies risk; foreign securities risk; currency risk; preferred stock risk; and warrants and rights risk.

n   Transamerica Legg Mason Partners Investors Value seeks long-term growth of capital with current income as a secondary objective by investing principally in common stocks of established U.S. companies. The fund’s sub-adviser focuses on large capitalization companies and seeks to identify companies with favorable valuations and attractive growth potential. To a lesser degree, the fund invests in income producing securities such as debt securities. The principal risks of investing in this underlying fund are: market risk; stock risk; value investing risk; and fixed-income securities risk.

n   Transamerica Loomis Sayles Bond seeks high total investment return through a combination of current income and capital appreciation by investing fund assets principally in fixed-income securities. The fund normally invests at least 80% of its net assets in fixed-income securities, primarily investment-grade, fixed-income securities, although it may invest up to 35% of its assets in lower-rated fixed-income securities (“junk bonds”) and up to 20% of its assets in preferred stocks. The principal risks of investing in this underlying fund are: market risk; fixed-income securities risk; high-yield debt securities risk; bank loans risk; stock risk; preferred stock risk; foreign securities risk; currency risk; emerging markets risk; mortgage-related securities risk; REITs risk; repurchase agreements risk; Rule 144A securities risk; convertible securities risk; structured notes risk; derivatives risk; currency hedging risk; and liquidity risk.

n   Transamerica MFS International Equity seeks capital growth by investing primarily in equity securities of foreign companies. Under normal market conditions, at least 80% of the fund’s net assets are invested in common stocks and related equity securities, such as preferred stock, convertible securities and depositary receipts of issuers economically tied to a number of

132

Section B — Description of Certain Underlying Funds

countries throughout the world, including emerging markets. The fund may invest a relatively high percentage of its assets in a single country, a small number of countries, or a particular geographic region. The fund may invest its assets in the stocks of companies it believes to have above average earnings growth potential compared to other companies (growth companies), in the stocks of companies it believes are undervalued compared to their perceived worth (value companies), or in a combination of both. The principal risks of investing in this underlying fund are: market risk; stock risk; foreign securities risk; currency risk; emerging markets risk; small- or medium-sized companies risk; geographic concentration risk; growth stock risk; value investing risk; derivatives risk; preferred stock risk; and convertible securities risk.

n   Transamerica Marsico Growth seeks long-term growth of capital by investing principally in common stocks. Under normal circumstances, the fund invests primarily in common stocks of large companies selected for their long-term growth potential. The fund’s sub-adviser uses an approach that combines “top down” macro-economic analysis with “bottom up” stock selection. The principal risks of investing in this underlying fund are: market risk; stock risk; growth stock risk; foreign securities risk; currency risk; and emerging markets risk.

n   Transamerica Marsico International Growth seeks long-term growth of capital by investing primarily in common stocks of foreign companies that are selected for their long-term growth potential. The fund may invest in companies of any size throughout the world, and normally invests in the securities of issuers that are economically tied to one or more foreign countries, and expects to be invested in at least four different foreign countries. The fund may invest in securities of companies economically tied to emerging markets. The principal risks of investing in this underlying fund are: market risk; stock risk; growth stock risk; foreign securities risk; currency risk; emerging markets risk; and small- or medium-sized companies risk.

n   Transamerica Neuberger Berman International seeks long-term growth of capital by investing primarily in common stocks of foreign companies of any size, including companies in developed and emerging industrialized markets. The fund looks for well-managed and profitable companies that show growth potential and whose stock prices are undervalued. The principal risks of investing in this underlying fund are: market risk; stock risk; value investing risk; foreign securities risk; currency risk; country, sector or industry focus risk; emerging markets risk; small- or medium-sized companies risk; derivatives risk; currency hedging risk; securities lending risk; liquidity risk; and leveraging risk.

n   Transamerica Oppenheimer Developing Markets aggressively seeks capital appreciation by investing, under normal market conditions, at least 80% of its net assets in equity securities of issuers that are economically tied to one or more emerging markets countries. In selecting securities, the fund’s sub-adviser looks primarily for foreign companies in developing markets with high growth potential. The principal risks of investing in this underlying fund are: market risk; stock risk; growth stock risk; foreign securities risk; currency risk; emerging markets risk; country, sector or industry focus risk; small- or medium-sized companies risk; fixed-income securities risk; convertible securities risk; preferred stock risk; liquidity risk; derivatives risk; currency hedging risk; warrants and rights risk; and portfolio turnover risk.

n   Transamerica Oppenheimer Small- & Mid-Cap Value seeks capital appreciation by investing, under normal market conditions, 80% of its net assets in equity securities of small-cap and mid-cap domestic and foreign issuers. The fund’s sub-adviser uses a value approach to investing by searching for securities it believes to be undervalued in the marketplace. The principal risks of investing in this underlying fund are: market risk; stock risk; small- or medium-sized companies risk; value investing risk; derivatives risk; foreign securities risk; currency risk; preferred stock risk; fixed-income securities risk; convertible securities risk; currency hedging risk; liquidity risk; and portfolio turnover risk.

n   Transamerica PIMCO Real Return TIPS seeks maximum real return, consistent with preservation of real capital and prudent investment management by investing principally in Treasury Inflation-Protected Securities (or “TIPS”). The fund’s sub-adviser invests, under normal circumstances, at least 80% of the fund’s net assets in TIPS of varying maturities. The principal risks of investing in this underlying fund are: market risk; fixed-income securities risk; interest rate risk; foreign securities risk; currency risk; derivatives risk; leveraging risk; emerging markets risk; high-yield debt securities risk; stock risk; preferred stock risk; currency hedging risk; tax consequences risk; CPIU measurement risk; liquidity risk; mortgage-related securities risk; and non-diversification risk.

n   Transamerica PIMCO Total Return seeks maximum total return consistent with preservation of capital and prudent investment management by investing principally in a diversified portfolio of fixed-income securities of varying maturities. The fund may invest its assets in derivative instruments. The principal risks of investing in this underlying fund are: market risk; fixed-income securities risk; derivatives risk; mortgage-related securities risk; foreign securities risk; currency risk; currency hedging risk; leveraging risk; emerging markets risk; high-yield debt securities risk; stock risk; preferred stock risk; and liquidity risk.

n   Transamerica Schroders International Small Cap seeks to provide long-term capital appreciation by investing primarily in the equity securities of smaller companies located outside the U.S. The sub-adviser employs a fundamental investment approach that considers macroeconomic factors while focusing primarily on company-specific factors, including the company’s potential for long-term growth, financial condition, quality of management and sensitivity to cyclical factors, as well as the relative value of the company’s securities compared to the market as a whole. The principal risks of investing in this underlying fund are: market risk; stock risk; foreign securities risk; currency risk; growth stock risk; smaller companies risk; investment style risk; emerging markets risk; country/regional risk; liquidity risk; and derivatives risk.

n   Transamerica Third Avenue Value seeks long-term capital appreciation by investing, under normal circumstances, at least 80% of its assets in common stocks of U.S. and non-U.S. issuers. The fund invests in companies regardless of market capitalization, with the mix of its investments at any time

133

Section B — Description of Certain Underlying Funds

depending on the industries and types of securities its sub-adviser believes represent the best values consistent with the fund’s strategies and restrictions. The principal risks of investing in this underlying fund are: market risk; stock risk; foreign securities risk; currency risk; fixed-income securities risk; small- or medium-sized companies risk; high-yield debt securities risk; non-diversification risk; and value investing risk.

n   Transamerica Thornburg International Value seeks long-term capital appreciation by investing, under normal circumstances, at least 75% of its assets in foreign securities of issuers that are located in a number of countries throughout the world. The fund may invest in emerging markets. The fund’s principal focus will be on traditional or basic stocks; however, the fund’s sub-adviser may include stocks that it believes provide value in a broader or different context. The fund may invest in companies of any size, but invests primarily in the large and middle range of public company market capitalizations. The principal risks of investing in this underlying fund are: market risk; stock risk; foreign securities risk; currency risk; emerging markets risk; small- or medium-sized companies risk; value investing risk; fixed-income securities risk; derivatives risk; and currency hedging risk.

n   Transamerica UBS Dynamic Alpha seeks to maximize total return, consisting of capital appreciation and current income by investing principally in equity and fixed-income securities of U.S. and foreign issuers and other financial instruments to gain exposure to global equity, global fixed-income and cash equivalent markets including global currencies. The fund is a multi-asset fund. The asset classes in which the fund may invest include, but are not limited to: U.S. and non-U.S. equity securities (including emerging markets equity securities); U.S. and non-U.S. fixed-income securities (including U.S. high-yield, fixed-income and emerging markets debt); and cash equivalents. The principal risks of investing in this underlying fund are: market risk; stock risk; value investing risk, growth stock risk; small- or medium-sized companies risk; fixed-income securities risk; high-yield debt securities risk; prepayment risk; U.S. government agency obligations risk; foreign securities risk; currency risk; emerging markets risk; convertible securities risk; preferred stock risk; derivatives risk; short sales risk; leveraging risk; country, sector or industry focus risk; liquidity risk; non-diversification risk; active trading risk; and investing in other funds risk.

n   Transamerica UBS Large Cap Value seeks to maximize total return, consisting of capital appreciation and current income by investing, under normal circumstances, at least 80% of its net assets in equity securities of U.S. large capitalization companies. In selecting securities, the fund’s sub-adviser focuses on, among other things, identifying discrepancies between a security’s fundamental value and its market price. The principal risks of investing in this underlying fund are: market risk; stock risk; value investing risk; preferred stock risk; convertible securities risk; warrants and rights risk; and derivatives risk.

n   Transamerica Van Kampen Emerging Markets Debt seeks high total return by investing primarily in fixed-income securities of government and government-related issuers and, to a lesser extent, of corporate issuers in emerging markets countries. Under normal circumstances, at least 80% of the fund’s net assets will be invested in debt securities of issuers located in emerging markets countries. The principal risks of investing in this underlying fund are: market risk; fixed-income securities risk; foreign securities risk; currency risk; emerging markets risk; derivatives risk; non-diversification risk; and liquidity risk.

n   Transamerica Van Kampen Mid-Cap Growth seeks capital appreciation by investing, under normal circumstances, at least 80% of its net assets in securities of medium-sized companies at the time of investment. The fund may also invest in common stocks and other equity securities of small- and large- cap companies, as well as preferred stocks, convertible securities, rights and warrants and debt securities. The principal risks of investing in this underlying fund are: market risk; stock risk; growth stock risk; small- or medium-sized companies risk; derivatives risk; foreign securities risk; currency risk; emerging markets risk; convertible securities risk; preferred stock risk; warrants and rights risk; fixed-income securities risk; REITs risk; and investing aggressively risk.

n   Transamerica Van Kampen Small Company Growth seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of small capitalization companies (under normal circumstances, at least 80% of the fund’s net assets will be invested in such securities). The principal risks of investing in this underlying fund are: market risk; stock risk; smaller companies risk; growth stock risk; foreign securities risk; currency risk; derivatives risk; fixed-income securities risk; emerging markets risk; and REITs risk.

n   Transamerica WMC Emerging Markets seeks long-term capital appreciation by investing, under normal circumstances, at least 80% of its assets in equity securities of companies that conduct their principal business activities in emerging markets, are organized under the laws of or maintain their principal place of business in emerging markets, or whose securities are traded principally on exchanges in emerging markets. The fund’s sub-adviser considers emerging markets to be markets with rapidly growing economies. The portfolio manager concentrates first on analysis of individual companies, then on analysis of individual sectors, countries and regions. The principal risks of investing in this underlying fund are: market risk; stock risk; growth stock risk; foreign securities risk; currency risk; emerging markets risk; country, sector or industry focus risk; small- or medium-sized companies risk; fixed-income securities risk; convertible securities risk; preferred stock risk; liquidity risk; derivatives risk; currency hedging risk; warrants and rights risk; and portfolio turnover risk.

The funds may invest their assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the funds may do so without limit. Although the underlying funds will do this only in seeking to avoid losses, the underlying funds may be unable to pursue their investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the funds have any uninvested cash, the funds would also be subject to risk with respect to the depository institution holding the cash.

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Investment Adviser

Transamerica Funds’ Board of Trustees is responsible for managing the business affairs of Transamerica Funds. The Board oversees the operation of Transamerica Funds by its officers. It also reviews the management of each fund’s assets by TAM and investment sub-advisers. You can find additional information about Transamerica Funds’ Trustees and officers in the SAI.

TAM, located at 570 Carillon Parkway, St. Petersburg, Florida 33716, serves as investment adviser for Transamerica Funds. The investment adviser hires investment sub-advisers to furnish investment advice and recommendations and has entered into sub-advisory agreements with each fund’s sub-adviser. The investment adviser also monitors the sub-advisers’ buying and selling of portfolio securities and administration of the funds. For these services, TAM is paid investment advisory fees. These fees are calculated on the average daily net assets of each fund, and are paid at the rates previously shown in this prospectus.

TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) (“Western Reserve”) and AUSA Holding Company (23%) (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group.

AEGON USA Investment Management, LLC and Transamerica Investment Management, LLC are affiliates of TAM and Transamerica Funds.

From time to time TAM and/or its affiliates pay, out of their own resources and not out of fund assets, for distribution and/or administrative services provided by broker-dealers and other financial intermediaries. See the section titled “Other Distribution or Service Arrangements” in this prospectus.

The funds may rely on an Order from the SEC (Release IC-23379 dated August 5, 1998) that permits Transamerica Funds and its investment adviser, TAM, subject to certain conditions, and without the approval of shareholders to:

(1)	employ a new unaffiliated sub-adviser for a fund pursuant to the terms of a new investment sub-advisory agreement, either as a replacement for an existing sub-adviser or as an additional sub-adviser;
(2)	materially change the terms of any sub-advisory agreement; and
(3)	continue the employment of an existing sub-adviser on sub-advisory contract terms where a contract has been assigned because of a change of control of the sub-adviser.

In such circumstances, shareholders would receive notice and information about the new sub-adviser within ninety (90) days after the hiring of any new sub-adviser.

To Contact Transamerica Funds

-  Customer Service:	1-888-233-4339
-  Internet:	www.transamericafunds.com
-  Fax:	1-888-329-4339
Mailing Address:	Transamerica Fund Services, Inc.
	P.O. Box 219945
	Kansas City, MO 64121-9945
Overnight Address:	Transamerica Fund Services, Inc.
	330 W. 9th Street
	Kansas City, MO 64105

The following information applies to Class A, Class B, Class C and Class T Shares (Class T Shares Closed to New Investors)

Opening An Account

Fill out the New Account Application which is available on our website. Transamerica Funds requires all applications to include an investment representative or an approved broker-dealer of record. An approved broker-dealer is one that is providing services under a valid dealer sales agreement with the funds’ distributor.

IRAs and other retirement plan accounts require different applications, which you can request by calling Customer Service or by visiting our website.

Note: To help the U.S. Government fight the funding of terrorism and money laundering activities, the USA PATRIOT Act requires all financial institutions to obtain, verify, and record information that identifies each person or entity that opens an account. On your application, be sure to include your name, date of birth (if an individual), residential address and Social Security Number or taxpayer identification number. If there are authorized traders on your account, please provide this information for each trader. If you do not provide this information, your account will not be established. If Transamerica Funds cannot verify your identity within 30 days from the date your account is established, your account may be closed based on the next calculated net asset value (“NAV”) per share.

Minimum Investment

	Minimum		Minimum
	Initial		Subsequent
	Investment		Investment
	(per fund		(per fund
Type of Account	account)		account)
Regular Accounts	$	1,000	$	50
IRA, Roth IRA or Coverdell ESA	$	1,000	$	50
Employer-sponsored Retirement Plans (includes 403(b), SEP and SIMPLE IRA plans)	$	1,000	$	50
Uniform Gift to Minors (“UGMA”) or Transfer to Minors (“UTMA”)	$	1,000	$	50
Payroll Deduction and Automatic Investment Plans	$	500	$	50	*

*  Minimum per monthly fund account investment.

Note:  Transamerica Funds reserves the right to change the amount of these minimums from time to time or to waive them in whole or in part. Omnibus accounts maintained on behalf of certain 401(k) and

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other retirement plans are not subject to these account minimum requirements. The minimums may be waived for certain employer-sponsored retirement plans under which the employee limits his or her salary deferral purchase to one fund account. There are no minimums for “wrap” accounts for the benefit of clients of certain broker-dealers, financial institutions, or financial planners who have entered into arrangements with Transamerica Funds or Transamerica Capital, Inc. (“TCI”), and for investments made by a retirement plan described in Section 401(a), 401(k), 401(m), 403(b) or 457 of the Internal Revenue Code.

By Mail

n   Send your completed application and check made payable to Transamerica Fund Services, Inc.

Through an Authorized Dealer

n   The dealer is responsible for opening your account and providing Transamerica Funds with your taxpayer identification number.

Buying Shares

Investors may purchase shares of the funds at the “offering price” of the shares, which is the net asset value per share plus any applicable initial sales charge. Please note that purchase requests initiated through an automated service that exceeds $50,000 per day may be rejected and must be submitted in writing.

By Check

n	Make your check payable and send to Transamerica Fund Services, Inc.
n	If you are opening a new account, send your completed application along with your check.
n	If you are purchasing shares in an existing account(s), please reference your account numbers(s) and the Transamerica fund(s) you wish to invest in. If you do not specify the fund(s) in which you wish to invest, and your referenced account is invested in one fund, your check will be deposited into such fund.
n	Redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply.

n   Transamerica Funds does not accept money orders, traveler’s checks, starter checks, credit card convenience checks or cash. Cashier checks and third-party checks may be accepted, subject to approval by Transamerica Funds.

By Automatic Investment Plan

n   With an Automatic Investment Plan (“AIP”), a level dollar amount is invested monthly and payment is deducted electronically from your bank account. Due to your bank’s requirements, please allow up to 30 days for your AIP to begin. Investments may be made between the 3rd and 28th of each month only, and will occur on the 15th if no selection is made. Call Customer Service for information on how to establish an AIP or visit our website to obtain an AIP request form.

By Telephone

n   You may request an electronic transfer of funds from your bank account to your Transamerica Funds account. The electronic bank link option must be established in advance before Automated Clearing House (“ACH”) purchases will be accepted. Call Customer Service or visit our website for information on how to establish an electronic bank link. Due to your bank’s requirements, please allow up to 30 days to establish this option.

Through an Authorized Dealer

n   If your dealer has already established your account for you, no additional documentation is needed. Call your dealer to place your order. Transamerica Funds must receive your payment within three business days after your order is accepted.

By the Internet

n   You may request an electronic transfer of funds from your bank account to your Transamerica Funds account. The electronic bank link option must be established in advance before ACH purchases will be accepted. Call Customer Service or visit our website for information on how to establish an electronic bank link.

By Payroll Deduction

n   You may have money transferred regularly from your payroll to your Transamerica Funds account. Call Customer Service to establish this deduction.

By Wire Transfer

n   You may request that your bank wire funds to your Transamerica Funds account (note that your bank may charge a fee for such service). You must have an existing account to make a payment by wire transfer. Ask your bank to send your payment to:

Bank of America, NA, Charlotte, NC, ABA# 026009593, Credit: Transamerica Funds Acct # 3600622064, Ref: Shareholder name, Transamerica fund and account numbers.

n   Shares will be purchased at the next determined NAV after receipt of your wire if you have supplied all other required information.

Other Information

If your check, draft or electronic transfer is returned unpaid by your bank, you will be charged a fee of $20 for each item that has been returned.

Transamerica Funds reserves the right to terminate your electronic draft privileges if the drafts are returned unpaid by your bank.

Transamerica Funds or its agents may reject a request for purchase of shares at any time, in whole or in part, including any purchase under the exchange privilege and any purchase request that does not include an investment representative or an approved broker-dealer. To the extent authorized by law, Transamerica Funds and each of the funds reserves the right to discontinue offering shares at any time or to cease operating entirely.

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Selling Shares

Selling shares is also referred to as “redeeming” shares. You can redeem your shares at any time.

Proceeds from the redemption of your shares will usually be sent within three business days after receipt in good order of your request for redemption (unless you request to receive payment by wire or another option described below). However, Transamerica Funds has the right to take up to seven days to pay your redemption proceeds, and may postpone payment under certain circumstances, as authorized by law. In cases where shares have recently been purchased and the purchase money is not yet available, redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply. Shares purchased by wire are immediately available and not subject to the 15 day holding period.

Please note that redemption requests greater than $50,000 per day must be submitted in writing. In addition, amounts greater than $50,000 cannot be sent via ACH (check or federal funds wire only). Additionally, requests totaling more than $100,000 must be in writing with an original signature guarantee by all shareholders.

The electronic bank link option must be established in advance for payments made electronically to your bank such as ACH or expedited wire redemptions. Call Customer Service to verify this feature is in place on your account or to obtain information on how to establish the electronic bank link.

To request your redemption and receive payment by:

Direct Deposit – ACH

n   You may request an “ACH redemption” in writing, by phone or by internet access to your account. Payment should usually be received by your bank account 2-4 banking days after your request is received in good order. Transamerica Funds does not charge for this payment option. Certain IRAs and qualified retirement plans may not be eligible via the internet.

Direct Deposit – Wire

n   You may request an expedited wire redemption in writing, or by phone. The electronic bank link must be established in advance. Otherwise, an original signature guarantee will be required. Wire redemptions have a minimum of $1,000 per wire. Payment should be received by your bank account the next banking day after your request is received in good order. Transamerica Funds charges $10 for this service. Your bank may charge a fee as well.

Check to Address of Record

n

Written Request:  Send a letter requesting a withdrawal to Transamerica Funds. Specify the fund, account number, and dollar amount or number of shares you wish to redeem. Be sure to include all shareholders’ signatures and any additional documents, as well as an original signature guarantee(s) if required. If you are requesting a distribution from an IRA, federal tax withholding of 10% will apply unless you elect otherwise. If you elect to withhold, the minimum tax withholding rate is 10%.

n

Telephone or Internet Request:  You may request your redemption by phone or internet. Certain IRAs and qualified retirement plans may not be eligible.

Check to Another Party/Address

n   This request must be in writing, regardless of amount, signed by all account owners with an original signature guarantee.

Systematic Withdrawal Plan (by Direct Deposit – ACH or Check)

n   You can establish a Systematic Withdrawal Plan (“SWP”) either at the time you open your account or at a later date. Call Customer Service for information on how to establish a SWP or visit our website to obtain the appropriate form to complete.

Through an Authorized Dealer

n   You may redeem your shares through an authorized dealer (they may impose a service charge). Contact your Registered Representative or call Customer Service for assistance.

Your Request to Sell Your Shares and Receive Payment May Be Subject to:

n	The type of account you have and if there is more than one shareholder.
n	The dollar amount you are requesting; redemptions over $50,000 must be in writing and those redemptions totaling more than $100,000 require a written request with an original signature guarantee for all shareholders on the account.
n	A written request and original signature guarantee may be required if there have been recent changes made to your account (such as an address change) or other such circumstances. For your protection, if an address change was made in the last 10 days, Transamerica Funds requires a redemption request in writing, signed by all account owners with an original signature guarantee.
n	When redeeming all shares from an account with an active AIP, your AIP will automatically be stopped. Please contact Customer Service if you wish to re-activate your AIP.
n	Each fund reserves the right to refuse a telephone redemption request if it is believed it is advisable to do so. The telephone redemption option may be suspended or terminated at any time without advance notice.
n	Redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply.

n   Shares will normally be redeemed for cash, although each fund retains the right to redeem its shares in kind. Please see the SAI for more details.

n   If you request that a withdrawal check be delivered overnight, a $20 overnight fee will be charged; for Saturday delivery, a $30 overnight fee will be charged.

Please see additional information relating to original signature guarantee later in this prospectus.

Involuntary Redemptions

The fund reserves the right to close your account if the account value falls below the fund’s minimum account balance, or you are deemed to engage in activities that are illegal (such as late

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trading) or otherwise believed to be detrimental to the fund (such as market timing or frequent small redemptions), to the fullest extent permitted by law.

Exchanging Shares

n	You may request an exchange in writing, by phone, or by accessing your account through the internet.
n	You can exchange shares in one fund for shares in the same class of another fund offered in this prospectus.
n	The minimum exchange to a new fund account is $1,000. This minimum is reduced to $500 per fund account if you elect to establish an AIP and invest a minimum of $50 per month, per fund account. If you want to exchange between existing fund accounts, the required minimum will be $50 per fund account.
n	An exchange is treated as a redemption of a fund’s shares, followed by a purchase of the shares of the fund into which you exchanged. Prior to making exchanges into a fund that you do not own, please read the prospectus of that fund carefully.
n	If you exchange all your shares to a new fund, any active systematic plan that you maintain with Transamerica Funds will also carry over to this new fund unless otherwise instructed.
n	Class T shares of Transamerica Equity may be exchanged for only Class A shares of any Transamerica fund offered in this prospectus, other than Transamerica Equity.
n	You may not exchange other classes of shares of the Transamerica Funds for Class T shares of Transamerica Equity.

n   Transamerica Funds reserves the right to modify or terminate the exchange privilege at any time upon 60 days’ written notice.

n	Transamerica Funds reserves the right to deny any exchange request involving transactions between classes of shares. Please review your individual circumstances with your financial professional.
n	The minimum exchange amount may be waived with respect to transactions in omnibus accounts maintained on behalf of certain 401(k) and other retirement plans.

Features and Policies

Checkwriting Service (For Class A shares of Transamerica Money Market only)

If you would like to use the checkwriting service, mark the appropriate box on the application or authorization form. Your Transamerica Money Market fund account must have a minimum balance of $1,000 to establish check writing privileges. The fund will send you checks when it receives these properly completed documents and your check has cleared the 15 day holding period. Checks must be written for at least $250, and investments made by check or ACH must have been in your account for at least 15 calendar days before you can write checks against them. A service fee of $10 applies for those checks written under $250. When the check is presented for payment, the fund will redeem a sufficient number of full and fractional shares in your account at that day’s net asset value to cover the amount of the check. Checks presented against your account in an amount that exceeds your available balance will be returned for “insufficient funds” and your account will incur a $20 service fee. Due to dividends accruing on your account, it is not possible to determine your account’s value in advance so you should not write a check for the entire value or try to close your account by writing a check. A stop payment on a check may be requested for a $20 service fee. The payment of funds is authorized by the signature(s) appearing on the Transamerica Funds application or authorization form. Each signatory guarantees the genuineness of the other signatures.

The use of checks is subject to the rules of the Transamerica Funds designated bank for its checkwriting service. Transamerica Funds has chosen UMB Bank, N.A. as its designated bank for this service. UMB Bank, N.A., or its bank affiliate (the Bank), is appointed agent by the person(s) signing the Transamerica Funds application or authorization form (the Investor(s)) and, as agent, is authorized and directed upon presentment of checks to the Bank to transmit such checks to Transamerica Funds as requests to redeem shares registered in the name of the Investor(s) in the amounts of such checks.

This checkwriting service is subject to the applicable terms and restrictions, including charges, set forth in this prospectus. The Investor(s) agrees that he/she is subject to the rules, regulations, and laws governing check collection including the Uniform Commercial Code as enacted in the state of Missouri, pertaining to this checkwriting service, as amended from time to time. The Bank and/or Transamerica Funds has the right not to honor checks presented to it and the right to change, modify or terminate this checkwriting service at any time.

The checkwriting service is not available for IRAs, Coverdell ESAs, qualified retirement plans or Class B or Class C shares of Transamerica Money Market.

Customer Service

Occasionally, Transamerica Funds experiences high call

volume due to unusual market activity or other events that may make it difficult for you to reach a Customer Service Representative by telephone. If you are unable to reach Transamerica Funds by telephone, please consider visiting our website at www.transamericafunds.com. You may also send instructions by mail, by fax, or by using the In-Touch line (automated phone system).

Uncashed Checks Issued on Your Account

If any check Transamerica Funds issues is returned by the Post Office as undeliverable, or remains outstanding (uncashed) for six months, we reserve the right to reinvest check proceeds back into your account at the net asset value next calculated after reinvestment. If applicable, we will also change your account distribution option from cash to reinvest. Interest does not accrue on amounts represented by uncashed checks. In case we are unable to reinvest check proceeds in the original funds that you held, for example, if a fund has been liquidated or is closed to new investments, we reserve the right to reinvest the proceeds in Transamerica Money Market.

Minimum Dividend Check Amounts

To control costs associated with issuing and administering dividend checks, we reserve the right not to issue checks under a specified amount. For accounts with the cash by check dividend distribution option, if the dividend payment total is less than $10,

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the distribution will be reinvested into the account and no check will be issued.

Minimum Account Balance

Due to the proportionately higher cost of maintaining customer fund accounts with balances below the stated minimums for each class of shares, Transamerica Funds reserves the right to close such accounts or assess an annual fee on such fund accounts to help offset the costs associated with maintaining the account. Transamerica Funds generally provides a 60-day notification to the address of record prior to assessing a minimum fund account fee, or closing any fund account. The following describes the fees assessed against fund accounts with balances below the stated minimum:

Account Balance	Fee Assessment
(per fund account)	(per fund account)
If your balance is below $1,000 per fund account	$25 annual fee assessed, until balance reaches $1,000

No fees will be charged on:

n	accounts opened within the preceding 12 months
n	accounts with an active monthly Automatic Investment Plan or payroll deduction ($50 minimum per fund account)
n	accounts owned by an individual which, when combined by Social Security Number, have a balance of $5,000 or more
n	accounts owned by individuals in the same household (by address) that have a combined balance of $5,000 or more
n	accounts for which Transamerica Funds in its discretion has waived the minimum account balance requirements
n	UTMA/UGMA accounts (held at Transamerica Funds)
n	State Street Custodial Accounts (held at Transamerica Funds)
n	Coverdell ESA accounts (held at Transamerica Funds)
n	Omnibus and Network Level 3 accounts
n	B-share accounts whose shares have started to convert to A-share accounts (as long as combined value of both accounts is at least $1,000)

Telephone Transactions

Transamerica Funds and its transfer agent, Transamerica Fund Services, Inc. (“TFS”) are not liable for complying with telephone instructions that are deemed by them to be genuine. Transamerica Funds and TFS will employ reasonable procedures to help ensure telephone instructions are genuine. In situations where Transamerica Funds or TFS reasonably believe they were acting on genuine telephone instructions, you bear the risk of loss. These procedures may include requiring personal identification, providing written confirmation of transactions, and tape recording conversations. Transamerica Funds reserves the right to modify the telephone redemption privilege at any time.

Retirement and ESA State Street Account Maintenance Fees

Retirement plan and Coverdell ESA State Street accounts are subject to an annual custodial fee of $15 per fund account, with a maximum fee of $30 per Social Security Number. For example, an IRA in two fund accounts would normally be subject to a $30 annual custodial fee. An A-share account which holds shares converted from a B-share account shall be considered as part of the original B share account for purposes of this fee. The fee is waived if the total of the retirement plan and ESA account(s)’ value per Social Security Number is more than $50,000.

Professional Fees

Your financial professional may charge a fee for his or her services. This fee will be in addition to any fees charged by Transamerica Funds. Your financial professional will answer any questions that you may have regarding such fees.

Signature Guarantee

An original signature guarantee assures that a signature is genuine so that you are protected from unauthorized account transactions. Notarization is not an acceptable substitute. Acceptable guarantors only include participants in the Securities Transfer Agents Medallion Program (“STAMP2000”). Participants in STAMP2000 may include financial institutions such as banks, savings and loan associations, trust companies, credit unions, broker-dealers, and member firms of a national securities exchange.

An original signature guarantee is required if any of the following is applicable:

n	You request a redemption or distribution transaction totaling more than $100,000 or, in the case of an IRA with a market value in excess of $100,000, you request a custodian to custodian transfer.
n	You would like a check made payable to anyone other than the shareholder(s) of record.
n	You would like a check mailed to an address which has been changed within 10 days of the redemption request.
n	You would like a check mailed to an address other than the address of record.
n	You would like your redemption proceeds wired to a bank account other than a bank account of record.
n	You are adding or removing a shareholder from an account.
n	You are changing ownership of an account.
n	When establishing an electronic bank link, if the Transamerica Funds’ account holder’s name does not appear on the check.

The funds reserve the right to require an original signature guarantee under other circumstances or to reject or delay a redemption on certain legal grounds.

An original signature guarantee may be refused if any of the following is applicable:

n	It does not appear valid or in good form.
n	The transaction amount exceeds the surety bond limit of the original signature guarantee.
n	The guarantee stamp has been reported as stolen, missing or counterfeit.

Employer Sponsored Accounts

If you participate in an employer sponsored retirement plan and wish to make an allocation change to your current fund selection, you or your financial professional must notify Transamerica Funds by phone or in writing. Please also remember to inform your employer of the change(s) to your fund allocation. Documentation for allocations submitted online or in writing from your employer will be used to allocate your contributions. This

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documentation will supersede all other prior instructions received from you or your financial professional. (Note: If you perform a partial or complete exchange to a new fund selection, your current fund allocation will remain unchanged for future contributions unless specified otherwise.)

E-Mail Communication

As e-mail communications may not be secure, and because we are unable to take reasonable precautions to verify your shareholder and transaction information, we cannot respond to account- specific requests received via e-mail. For your protection, we ask that all transaction requests be submitted only via telephone, mail or through the secure link on our website.

Reinvestment Privilege

Within a 90-day period after you sell your shares, you have the right to “reinvest” your money in any fund of the same class. You will not incur a new sales charge if you use this privilege within the allotted time frame. Any contingent deferred sales charge (“CDSC”) you paid on your shares will be credited to your account. You may reinvest the proceeds of a Class B share sale (less the CDSC) in Class A shares without paying the up-front sales charge. To take advantage of the 90-day reinvestment privilege, a written request must accompany your investment check.

Statements and Reports

Transamerica Funds will send you a confirmation statement after every transaction that affects your account balance or registration, with the exception of systematic transactions or transactions necessary to assess account fees. Systematic transactions and fees will be shown on your next regularly scheduled quarterly statement. Information regarding these fees are disclosed in this prospectus. Please review the confirmation statement carefully and promptly notify Transamerica Funds of any error. Information about the tax status of the prior year’s income dividends and capital gains distributions will be mailed to shareholders early each year.

Please retain your statements. If you require historical statements, Transamerica Funds may charge $10 per statement year up to a maximum of $50 per Social Security Number. Financial reports for the funds, which include a list of the holdings, will be mailed twice a year to all shareholders.

e-Delivery

Transamerica Funds offers e-Delivery, a fast and secure way of receiving statements and other shareholder documents electronically. Subscribers to e-Delivery are notified by e-mail when shareholder materials, such as prospectuses, financial transaction confirmations and financial reports, become available on the Transamerica Funds’ website.

Once your account is established, visit our website at www.transamericafunds.com, choose Transamerica Mutual Funds and then click on “Manage My Account” for more information and to subscribe. Then, once you have logged in to your account, select the “Electronic Delivery” option and follow the simple enrollment steps provided.

Choosing a Share Class

Each fund offers Class A, Class B and Class C shares, each with its own sales charge and expense structure. Transamerica Multi-Manager Alternative Strategies Portfolio and Transamerica Short-Term Bond do not offer Class B shares. Transamerica Equity offers an additional class, Class T shares, which are not available to new investors.

The amount of your investment and the amount of time that you plan to hold your shares will determine which class of shares you should choose. You should make this decision carefully because all of your future investments in your account will be in the same share class that you designate when you open your account. Your financial professional can help you choose the share class that makes the best sense for you.

If you are investing a large amount and plan to hold your shares for a long period, Class A shares may make the most sense for you. If you are investing a lesser amount, you may want to consider Class B shares (if you plan to invest for a period of at least 5 years), or Class C shares (if you plan to invest for a period of less than 5 years).

Transamerica Funds may, at any time and in its sole discretion, add, delete, or change the sales charges for any share class.

Class A Shares – Front Load

With Class A shares, you pay an initial sales charge only when you buy shares. (The offering price includes the sales charge.) NOTE: You do not pay an initial sales charge on Class A Transamerica Money Market purchases. There are 12b-1 distribution and service fees of up to 0.35% per year.

If you are investing $1 million or more, you can purchase Class A shares without any sales charge. However, if you redeem any of those shares within the first 24 months after buying them, you will pay a 1.00% contingent deferred sales charge (“CDSC”), unless they were purchased through a retirement plan described in Section 401(a), 401(k), 401(m), or 457 of the Internal Revenue Code, or through a “wrap” account for the benefit of clients of certain broker-dealers, financial institutions, or financial planners who have entered into arrangements with Transamerica Funds or TCI.

Class B Shares – Back Load

With Class B shares, you pay no initial sales charge when you invest, but you are charged a CDSC when you sell shares you have held for five years or less, as described in the table below.

Contingent Deferred Sales Charge – Class B Shares

	As a % of Dollar
	Amount (Subject
Year after Purchasing	to Change)
First		5	%
Second		4	%
Third		3	%
Fourth		2	%
Fifth		1	%
Sixth and Later		0	%

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Section C — Shareholder Information

Class B shares purchased prior to March 1, 2004 are subject to a CDSC if redeemed during the first 6 years of purchase (5%-1st year; 4%-2nd year; 3%-3rd year; 2%-4th year; and 1%-5th and 6th years). There are 12b-1 distribution and service fees of up to 1.00% per year.

Class B shares automatically convert to Class A shares after eight years, lowering annual expenses after conversion.

Generally, the funds recommend that you do not make any additional purchases in Class B shares when you already hold more than $100,000 of Class B shares of the funds. The funds reserve the right to reject any request to purchase Class B shares of the funds if, as a consequence of such investment, you will hold more than $100,000 of Class B shares of the funds. While the funds generally reject any requests to purchase shares beyond that threshold, the funds cannot always recognize or detect such requests. In addition, when you make a request to purchase Class B shares directly with Transamerica Funds or through a broker-dealer or other financial intermediary, you may be asked to provide additional information about other Class B shares that you hold in the funds.

Class C Shares – Level Load

With Class C shares, you pay no initial sales charge. You will pay a 1.00% CDSC if shares are redeemed during the first 12 months. There are 12b-1 distribution and service fees of up to 1.00% per year. Class C shares (formerly Class L shares) purchased prior to March 1, 2004 are subject to the prior CDSC fee structure which was a 2% CDSC if shares are redeemed during the first 12 months, and a 1% CDSC if redeemed during the second 12 months. Prior to March 1, 2004, Class C shares were named Class L shares. On June 15, 2004, Class C2 shares were merged into Class C shares; on September 24, 2004, Class M shares were merged into Class C shares.

Investors who invested in Class C2 shares prior to the merger of Class C2 shares into Class C shares can make additional investments in Class C shares through their Class C2 shares accounts that converted into Class C share accounts without being subject to a CDSC. If you exchange your shares from such accounts, future purchases of Class C will be subject to the CDSC. For shareholders who also own Class C shares which converted from Class C2 shares, their Class C shares that converted from Class M shares also will not be subject to a CDSC and will be subject to the same 12b-1 commission structure applicable to their former Class C2 shares.

Currently, investors who purchase Class C shares of a Transamerica Fund established prior to March 1, 2006 through Merrill Lynch, Pierce, Fenner & Smith Incorporated will not be subject to any CDSC otherwise payable with respect to redemptions of such Class C shares of the funds. Exchanges of Class C shares into a Transamerica fund established on or after March 1, 2006 through Merrill Lynch, Pierce, Fenner & Smith Incorporated that previously were not subject to a CDSC will continue to not be subject to such fee. This CDSC waiver may be terminated at any time. New and/or subsequent purchases into Transamerica Funds established on or after March 1, 2006 will be subject to a 1.00% CDSC if shares are redeemed within 12 months of purchase.

The maximum purchase order in Class C shares is $999,999.99.

Class T Shares – Front Load (Transamerica Equity Only)

(Closed to new investors)

When you buy Class T shares of Transamerica Equity, you pay an initial sales charge (the offering price includes the sales charge). You can reduce the sales charge percentage in the same ways that are described under Class A shares. Class T shares are not subject to annual 12b-1 distribution and service fees.

You pay no sales charge when you redeem Class T shares. As with Class A shares, if you pay no up-front sales charge because you are purchasing $1 million or more of Class T shares, you will pay a deferred sales charge of 1.00% if you redeem any of those shares within the first 24 months after buying them, unless they were purchased through a retirement plan described in Section 401(a), 401(k), 401(m), 403(b) or 457 of the Internal Revenue Code. The charge is assessed on an amount equal to the lesser of the then current market value or the original cost of the shares being redeemed. No sales charge is imposed on net asset value above the initial purchase.

Waivers of the sales charges are granted under certain conditions. Persons eligible to buy Class T shares at NAV may not impose a sales charge when they re-sell those shares.

Contingent Deferred Sales Charge

Your shares may be subject to a CDSC. Dividends and capital gains are not subject to the sales charge. There is no charge on any increase in the value of your shares. Transamerica Funds will always use the first in, first out method to fulfill your redemption requests. If your shares are worth less than when you bought them, the charge will be assessed on their current, lower value. In some cases, the sales charge may be waived.

Waivers and/or Reductions of
Charges

Class A and Class T Sales Charge Reductions

You can lower the sales charge percentage in the following ways:

n	Substantial investments receive lower sales charge rates (see tables below).
n	The “rights of accumulation” allows you, your spouse and children under age 21 to include the value of your existing holdings in any class of shares of the Transamerica Funds to determine your Class A or Class T sales charge. Breakpoints are derived from the daily NAV at the market close, the current combined NAV value at the time of the purchase and the gross amount of the new purchase.

n   A Letter of Intent (“LOI”) allows you, your spouse and children under the age of 21 to count all share investments, up to a maximum of $1 million, in a Transamerica fund over the next 13 months, as if you were making them all at once, to qualify for reduced sales charges on your Class A or Class T investments. The 13 month period will begin on the date of your first purchase following the execution of your LOI. The market value of your existing holdings eligible to be aggregated as of the trading day immediately before the start of your LOI period will be credited toward satisfying your LOI. Purchases made at NAV after the establishment of your LOI (as a result of another waiver or sales charge reduction) shall not count toward meeting the amount

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stated in your LOI. Transamerica Funds will reserve a portion of your shares to cover any additional sales charge that may apply if your LOI amount is not met.

n   By investing as part of a qualified group. An individual who is a member of a qualified group may purchase Class A or Class T shares at the reduced sales charge applicable to that group as a whole. A “qualified group” is one which has at least ten members; has been in existence for at least six months; has some purpose in addition to the purchase of mutual fund shares at a discount; has agreed to include fund sales publications in mailings to members; has arrangements made for access to the group which are satisfactory to Transamerica Funds’ transfer agent; has arrangements satisfactory to Transamerica Funds’ transfer agent established for verification that the group meets these requirements; and the group’s sole organizational nexus or connection is not that the members are credit card holders of a company, policy holders of an insurance company, customers of a bank or a broker-dealer, clients of an investment adviser or security holders of a company. Transamerica Funds reserves the right to waive the requirement that the group continue to meet the minimum membership requirement or the requirement that an investor continues to belong to the group in order to qualify for lower sales charges (but not to waive either of these requirements initially). To establish a group purchase program, both the group itself and each participant must complete an application. Please contact Customer Service (1-888-233-4339) for further information and assistance. Qualified group accounts are not eligible to be counted under a rights of accumulation or LOI sales charge reduction or waiver with accounts other than accounts in the qualified group.

n   By investing in a SIMPLE IRA plan, you and all plan participants will receive a reduced sales charge on all plan contributions that exceed quantity discount amounts. SIMPLE IRA plan accounts are not eligible to be counted under a rights of accumulation or LOI sales charge reduction or waiver with accounts other than accounts in the SIMPLE IRA plan.

Class A Share Quantity Discounts
(all funds except Transamerica bond funds
and Transamerica Money Market1)
	Sales			Sales
	Charge as			Charge
	% of			as % of
	Offering			Amount
Amount of Purchase*	Price			Invested
Under $50,000		5.50	%		5.82	%
$50,000 to under $100,000		4.75	%		4.99	%
$100,000 to under $250,000		3.50	%		3.63	%
$250,000 to under $500,000		2.75	%		2.83	%
$500,000 to under $1,000,000		2.00	%		2.04	%
$1,000,000 and over		0.00	%		0.00	%

Class A Share Quantity Discounts
(Transamerica bond funds2 except
Transamerica Short-Term Bond)
	Sales			Sales
	Charge as			Charge
	% of			as % of
	Offering			Amount
Amount of Purchase*	Price			Invested
Under $50,000		4.75	%		4.99	%
$50,000 to under $100,000		4.00	%		4.17	%
$100,000 to under $250,000		3.50	%		3.63	%
$250,000 to under $500,000		2.25	%		2.30	%
$500,000 to under $1,000,000		1.25	%		1.27	%
$1,000,000 and over		0.00	%		0.00	%

Class T Share Quantity Discounts
(Transamerica Equity)
	Sales			Sales
	Charge as			Charge
	% of			as % of
	Offering			Amount
Amount of Purchase*	Price			Invested
Under $10,000		8.50	%		9.29	%
$10,000 to under $25,000		7.75	%		8.40	%
$25,000 to under $50,000		6.25	%		6.67	%
$50,000 to under $75,000		5.75	%		6.10	%
$75,000 to under $100,000		5.00	%		5.26	%
$100,000 to under $250,000		4.25	%		4.44	%
$250,000 to under $500,000		3.00	%		3.09	%
$500,000 to under $1,000,000		1.25	%		1.27	%
$1,000,000 and over		0.00	%		0.00	%

Class A Share Quantity Discounts
(Transamerica Short-Term Bond)
	Sales			Sales
	Charge as			Charge
	% of			as % of
	Offering			Amount
Amount of Purchase*	Price			Invested
Under $500,000		2.50	%		2.56	%
$500,000 to under $750,000		2.00	%		2.04	%
$750,000 to under $1,000,000		1.50	%		1.52	%
$1,000,000 and over		0.00	%		0.00	%

1	There is no sales charge on Class A Shares of Transamerica Money Market.
2	Transamerica bond funds include Transamerica Flexible Income, Transamerica Convertible Securities, Transamerica High Yield Bond and Transamerica Short-Term Bond.

 *  The transfer agent, TFS, must be notified when a purchase is made that qualifies under any of the above provisions. Consequently, when a purchaser acquires shares directly from Transamerica Funds, he/she must indicate in his/her purchase order that such purchase qualifies under any of the above provisions, and must provide enough information to substantiate that claim. When a purchaser acquires shares through a dealer or other financial intermediary, he/she must inform his/her dealer or other financial intermediary of any facts that may qualify a purchase for any of the above provisions, such as, for example,

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Section C — Shareholder Information

information about other holdings of Class A or Class T shares of the funds that the purchaser has, directly with Transamerica Funds, or through other accounts with dealers or financial intermediaries. To substantiate a claim, it may be necessary for a purchaser to provide TFS or his/her dealer or other financial intermediary information or records regarding shares of Transamerica Funds held in all accounts (e.g., retirement plan accounts) of the purchaser directly with Transamerica Funds or with one or several dealers or other financial intermediaries, including to substantiate “rights of accumulation” accounts held by a spouse and children under age 21.

Waiver of Class A and Class T Initial Sales Charges

Class A and Class T shares may be purchased without a sales charge by:

n   Current and former trustees, directors, officers, and employees of Transamerica Funds and its affiliates; employees of Transamerica Funds sub-advisers; sales representatives and employees of dealers having a sales agreement with Transamerica Funds’ distributor, TCI; and any family members thereof;

n   Any trust, pension, profit-sharing or other benefit plan for any of the foregoing persons;

n   “Wrap” accounts for the benefit of clients of certain broker-dealers, financial institutions, or financial planners who have entered into arrangements with Transamerica Funds or TCI;

n	Employer-sponsored retirement plans described in Section 401(a), 401(k), 401(m), or 457 of the Internal Revenue Code with assets of $1 million or more and whose accounts are held through an Omnibus or Network Level 3 account arrangement;
n	Retirement plans described in Section 401(a), 401(k), 401(m), or 457 of the Internal Revenue Code whose accounts are held through an Omnibus or Network Level 3 account arrangement that purchased Class A shares without a sales charge prior to August 31, 2007;
n	Other retirement plans that purchased Class A shares without a sales charge prior to April 28, 2006;

n   Other retirement plans whose accounts are held through an arrangement with Morgan Stanley & Co. Incorporated;

n   Other retirement plans whose accounts are held through an arrangement with Ascensus (formerly BISYS Retirement);

n   Other retirement plans, non-qualified brokerage accounts, and other accounts that are held through an arrangement with Transamerica Retirement Management; and

n   Other individual retirement accounts held in the Merrill Lynch Investor Choice Annuity (IRA Series) with Merrill Lynch Life Insurance Company and ML Life Insurance Company of New York.

Investments by the retirement plan accounts mentioned above are not eligible to be counted under a rights of accumulation or letter of intent sales charge reduction or waiver with accounts other than accounts in the retirement plan.

Any person listed above (including retirement plan accounts and retirement plans) who requests a waiver of sales charges must provide adequate information to his/her broker-dealer or other financial intermediary or the funds’ distributor to substantiate such request.

Persons eligible to buy Class A and Class T shares at NAV may not impose a sales charge when they re-sell those shares.

Waiver of Class A, Class B, Class C, and Class T Contingent Deferred Sales Charges

You will not be assessed a sales charge for shares if you sell in the following situations:

n	Following the death of the shareholder on redemptions from the deceased person’s account only. If this deceased person’s account is re-registered to another name, sales charges would continue to apply to this new account. The transfer agent will require satisfactory proof of death before it determines to waive the CDSC fee.
n	Following the total disability of the shareholder (as determined by the Social Security Administration — applies only to shares held at the time the disability is determined). The transfer agent will require satisfactory proof of disability before it determines to waive the CDSC fee.
n	On redemptions made under Transamerica Funds’ systematic withdrawal plan (may not exceed 12% of the account value per fund on the day the systematic withdrawal plan was established). NOTE: The amount redeemed under this waiver does not need to be under a systematic withdrawal plan. If it is not under a systematic withdrawal plan, it is limited to one redemption per calendar year up to 12% of your account balance per fund at the time of redemption.
n	If you redeem your shares and reinvest the proceeds in the same class of any fund within 90 days of redeeming, the sales charge on the first redemption is waived.

Information on sales charge reductions and/or waivers can also be found (free of charge) on the Transamerica Funds website at www.transamericafunds.com.

The Following Information Applies
to Class R Shares

Transamerica Asset Allocation – Growth, Transamerica Asset Allocation – Moderate Growth, Transamerica Asset Allocation – Moderate and Transamerica Asset Allocation Conservative each offer Class R shares.

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Section C — Shareholder Information

Class R Availability

Class R shares of the funds in this prospectus are intended for purchase by participants in certain retirement plans described below and under the following conditions:

n	401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans, defined-benefit plans and non-qualified deferred compensation plans (eligible retirement plans).
n	Class R shares are available only to eligible retirement plans where Class R shares are held on the books of the funds through omnibus or Network Level 3 accounts (either at the plan level or at the level of the financial service firm serving as an intermediary).
n	The plan’s recordkeeper or financial service firm serving as an intermediary must have an agreement with Transamerica Funds or its agents to utilize Class R shares in certain investment products or programs.

The financial service firm serving as an intermediary can provide participants with detailed information on how to participate in the plan, elect a fund as an investment option, elect different investment options, alter the amounts contributed to the plan or change allocations among investment options. For questions about participant accounts or to obtain an application to participate in a plan, participants should contact their financial service firm serving as an intermediary, employee benefits office, the plan administrator, or the organization that provides recordkeeping services for the plan.

Financial service firms may provide some of the shareholder servicing and account maintenance services required by retirement plan accounts and their plan participants, including transfers of registration, dividend payee charges and generation of confirmation statements, and may arrange for plan administrators to provide other investment or administrative services. Financial service firms may charge retirement plans and plan participants transaction fees and/or other additional amounts for such services. Similarly, retirement plans may charge plan participants for certain expenses. These fees and additional amounts could reduce the return of investments in Class R shares of the funds.

Opening an Account and Purchasing Shares

Eligible retirement plans generally may open an account and purchase Class R shares by contacting any broker, dealer or other financial service firm authorized to sell Class R shares of the funds. Additional shares may be purchased through a retirement plan’s administrator, recordkeeper or financial service firm serving as an intermediary. There is no minimum initial investment for Class R shares.

Please refer to the retirement plan documents for information on how to purchase Class R shares of the funds and any fees that may apply.

Transamerica Funds must receive your payment within three business days after your order is accepted.

Transamerica Funds or its agents may reject a request for purchase of shares at any time, in whole or in part, including any purchase under the exchange privilege. Each fund reserves the right to discontinue offering Class R shares at any time, to liquidate Class R shares or merge Class R shares into another class of shares, or to cease investment operations entirely.

Selling Shares

If you own Class R shares, please refer to the retirement plan documents for information on how to redeem Class R shares of the funds.

Shares will normally be redeemed for cash, although each fund retains the right to redeem its shares in kind, under unusual circumstances, in order to protect the interests of shareholders by the delivery of securities selected from its assets at its discretion. Please see the SAI for more details.

Exchanging Shares

For Class R shares, if authorized by your plan, you can request an exchange of your shares in one fund for Class R shares of another fund offered in this prospectus. Please refer to your plan’s documents for additional information. An exchange is treated as a redemption of a fund’s shares followed by a purchase of the shares of the fund into which you exchanged. Prior to making exchanges into a fund you do not own, please read the prospectus of that fund.

The Following Information Applies
to All Share Classes

Market Timing/Excessive Trading

Some investors try to profit from various short-term or frequent trading strategies known as market timing. Examples of market timing include switching money into funds when their share prices are expected to rise and taking money out when their share prices are expected to fall, and switching from one fund to another and then back again after a short period of time. As money is shifted in and out, a fund may incur expenses for buying and selling securities. Excessive purchases, redemptions or exchanges of fund shares may disrupt portfolio management, hurt fund performance and drive fund expenses higher. For example, a fund may be forced to liquidate investments as a result of short-term trading and incur increased brokerage costs or realize taxable capital gains without attaining any investment advantage. These costs are generally borne by all shareholders, including long-term investors who do not generate these costs.

Transamerica Funds’ Board of Trustees has approved policies and procedures that are designed to discourage market timing or excessive trading which include limitations on the number of transactions in fund shares, as described in this prospectus. If you intend to engage in such practices, we request that you do not purchase shares of any of the funds. Each fund reserves the right to reject any request to purchase shares, including purchases in connection with an exchange transaction, which the fund reasonably believes to be in connection with market timing or excessive trading. The funds generally will consider four or

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Section C — Shareholder Information

more exchanges between funds, or frequent purchases and redemptions having a similar effect, during any rolling 90-day period to be evidence of market timing or excessive trading by a shareholder or by accounts under common control (for example, related shareholders, or a financial adviser with discretionary trading authority over multiple accounts). However, the funds reserve the right to determine less active trading to be “excessive” or related to market timing.

While the funds discourage market timing and excessive short-term trading, the funds cannot always recognize or detect such trading, particularly if it is facilitated by financial intermediaries or done through Omnibus Account arrangements. Transamerica Funds’ distributor has entered into agreements with intermediaries requiring the intermediaries to provide certain information to help identify harmful trading activity and to prohibit further purchases or exchanges by a shareholder identified as having engaged in excessive trading. There is no guarantee that the procedures used by financial intermediaries will be able to curtail frequent, short-term trading activity. For example, shareholders who seek to engage in frequent, short-term trading activity may use a variety of strategies to avoid detection, and the financial intermediaries’ ability to deter such activity may be limited by operational and information systems capabilities. Due to the risk that the funds and financial intermediaries may not detect all harmful trading activity, it is possible that shareholders may bear the risks associated with such activity.

Orders to purchase, redeem or exchange shares forwarded by certain omnibus accounts with Transamerica Funds will not be considered to be market timing or excessive trading for purposes of Transamerica Funds’ policies. However, the market timing and excessive trading policies of these omnibus firms or plans may apply to transactions by the underlying shareholders.

Reallocations in underlying series of Transamerica Funds by a Transamerica asset allocation fund which invests in other series of Transamerica in furtherance of a fund’s objective are not considered to be market timing or excessive trading.

Pricing of Shares

How Share Price is Determined

The price at which shares are purchased or redeemed is the NAV that is next calculated following receipt and acceptance of a purchase order in good order or receipt of a redemption order in good order by the fund or an authorized intermediary.

When Share Price Is Determined

The NAV of each fund (or class thereof) is determined on each day the New York Stock Exchange (“NYSE”) is open for business. The NAV is not determined on days when the NYSE is closed (generally New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas). Foreign securities may trade in their primary markets on weekends or other days when a fund does not price its shares (therefore, the NAV of a fund holding foreign securities may change on days when shareholders will not be able to buy or sell shares of the funds).

Purchase orders received in good order and accepted, and redemption orders received in good order, before the close of business on the NYSE, usually 4:00 p.m. Eastern Time, receive the NAV determined as of the close of the NYSE that day (plus or minus applicable sales charges). Purchase and redemption requests received after the NYSE is closed receive the NAV at the close of the NYSE the next day the NYSE is open.

Purchase orders for shares of the Transamerica asset allocation funds that are received in good order and accepted before the close of business on the NYSE receive the NAV determined as of the close of the NYSE that day. For direct purchases, corresponding orders for shares of the underlying constituent funds are priced on the same day that orders for shares of the asset allocation funds are received and accepted. For purchases of shares of the Transamerica asset allocation funds through the NSCC, orders for shares of the underlying constituent funds will be placed after the receipt and acceptance of the settled purchase order for shares of the asset allocation funds.

How NAV Is Calculated

The NAV of each fund (or class thereof) is calculated by taking the value of its net assets and dividing by the number of shares of the fund (or class) that are then outstanding.

The Board of Trustees has approved procedures to be used to value the funds’ securities for the purposes of determining the funds’ NAV. The valuation of the securities of the funds is determined in good faith by or under the direction of the Board. The Board has delegated certain valuation functions for the funds to TAM.

In general, securities and other investments are valued based on market prices at the close of regular trading on the NYSE. Fund securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-dominated foreign securities or ADRs, are valued at the closing price on the exchange or system where the security is principally traded. With respect to securities traded on the NASDAQ/NMS, such closing price may be the last reported sale price or the NASDAQ Official Closing Price (“NOCP”). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value should be determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales for that day on any exchange or system, a security is valued at the closing bid quotes on the exchange or system where the security is principally traded, or at the NOCP, if applicable. Foreign securities traded on U.S. exchanges are generally priced using last sale price regardless of trading activity. Securities traded over-the-counter are valued at the mean of the last bid and asked prices. The market price for debt obligations is generally the price supplied by an independent third party pricing service approved by the funds’ Board, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Investments in securities maturing in 60 days or less may be valued at amortized cost. Foreign securities generally are valued based on quotations from the primary market in which they are traded, and are converted from the local currency into U.S. dollars using current exchange rates. Market quotations for securities prices may be obtained from automated pricing services.

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Section C — Shareholder Information

Shares of open-end investment companies are generally valued at the net asset value per share reported by that investment company.

When a market quotation for a security is not readily available (which may include closing prices deemed to be unreliable because of the occurrence of a subsequent event), a valuation committee appointed by the Board of Trustees may, in good faith, establish a value for the security in accordance with fair valuation procedures adopted by the Board. The types of securities for which such fair value pricing may be required include, but are not limited to: foreign securities, where a significant event occurs after the close of the foreign market on which such security principally trades that is likely to have changed the value of such security, or the closing value is otherwise deemed unreliable; securities of an issuer that has entered into a restructuring; securities whose trading has been halted or suspended; fixed-income securities that have gone into default and for which there is no current market value quotation; and securities that are restricted as to transfer or resale. The funds use a fair value model developed by an independent third party pricing service to price foreign equity securities on days when there is a certain percentage change in the value of a domestic equity security index, as such percentage may be determined by TAM from time to time.

Valuing securities in accordance with fair value procedures involves greater reliance on judgment than valuing securities based on readily available market quotations. The valuation committee makes fair value determinations in good faith in accordance with funds’ valuation procedures. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service. There can be no assurance that a fund could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the fund determines its NAV per share.

Distribution of Shares

Distribution Plans

The Board of Trustees of Transamerica Funds has adopted a 12b-1 Plan for each class of shares of each fund (except Class T of Transamerica Equity). The Plan provides for payments of distribution and service fees, based on annualized percentages of daily net assets, to TCI, broker-dealers, financial intermediaries and other.

Distribution of Class A Shares.  Under the Plan, the funds pay distribution and service fees of up to 0.35% for Class A shares.

Distribution of Class B Shares.  Under the Plan, the funds pay distribution and service fees of up to 1.00% for Class B shares.

Distribution of Class C Shares.  Under the Plan, the funds pay distribution and service fees of up to 1.00% for Class C shares.

Distribution of Class R Shares.  Under the Plan, the funds pay distribution and service fees of up to 0.50% for Class R shares.

Class T Shares (Transamerica Equity only).  Class T shares do not have a 12b-1 Plan of Distribution, and are closed to new investors.

The Effect of Rule 12b-1 Plans.  Because the funds have 12b-1 Plans, even though Class B and C shares do not carry up-front sales loads, the higher distribution and service fees payable by those shares may, over time, be higher than the total fees paid by owners of Class A shares. In general, because 12b-1 Plan fees are paid on an ongoing basis, these fees will increase the cost of your investment and may cost more than other types of sales charges. For a complete description of the funds’ 12b-1 Plans, see the SAI.

Underwriting Agreement

Transamerica Funds has an Underwriting Agreement with TCI, located at 4600 South Syracuse Street, Suite 1100, Denver, CO 80237. TCI is an affiliate of TAM and Transamerica Funds. Under this agreement, TCI underwrites and distributes all classes of fund shares and bears the expenses of offering these shares to the public. The funds may pay TCI, or its agent, fees for its services. Of the distribution and service fees it usually receives for Class A and B shares, TCI, or its agent, may reallow or pay to brokers or dealers who sold them 0.25% of the average daily net assets of those shares. In the case of Class C and R shares, TCI, or its agent, reallows or pays to brokers, dealers or intermediaries its entire fee to those entities who sold them.

Other Distribution or Service Arrangements

TCI engages in wholesaling activities designed to support and maintain, and increase the number of, the financial intermediaries who sell shares of Transamerica Funds. Wholesaling activities include, but are not limited to, recommending and promoting, directly or through intermediaries, Transamerica Funds to financial intermediaries and providing sales training, retail broker support and other services. Such activities are financed by TAM and TCI, and not the Transamerica Funds.

TCI (in connection with, or in addition to, wholesaling services), TAM, TIM and other fund sub-advisers, directly or through TCI, out of their past profits and other available sources, provide cash payments or non-cash compensation to some, but not all, brokers and other financial intermediaries who have sold shares of the funds or sell shares of other series of Transamerica Funds or render investor services to fund shareholders. Such payments and compensation are in addition to the sales charges, Rule 12b-1 Plan fees, service fees and other fees that may be paid, directly or indirectly, to such brokers and other financial intermediaries. These arrangements are sometimes referred to as “revenue sharing” arrangements. Revenue sharing is not an expense of the funds, does not result in increased fund expenses, is not reflected in the fees and expenses sections of this prospectus and does not change the price paid by investors for the purchase of a fund’s shares or the amount received by a shareholder as proceeds from the redemption of fund shares.

Such additional cash payments may be made to brokers and other financial intermediaries that provide services to Transamerica Funds and/or shareholders in Transamerica Funds, including (without limitation) shareholder servicing, marketing support and/or access to sales meetings, sales representatives and management representatives of the broker or other financial

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intermediaries. Cash compensation may also be paid to brokers and other financial intermediaries for inclusion of a Transamerica fund on a sales list, including a preferred or select sales list, in other sales programs, or as an expense reimbursement or compensation in cases where the broker or other financial intermediary provides services to fund shareholders. To the extent permitted by applicable law, TCI and other parties may pay or allow other incentives and compensation to brokers and other financial intermediaries. TCI and the other parties making these payments generally assess the advisability of continuing making these payments periodically.

These cash payments may take a variety of forms, including (without limitation) reimbursement of ticket charges, additional compensation for sales, “trail” fees for shareholder servicing and maintenance of investor accounts, and finder’s fees that vary depending on the fund or share class and the dollar amount of shares sold. Revenue sharing payments can be calculated: (i) as a percentage of gross or net sales; (ii) as a percentage of gross or net assets under management; and/or (iii) as a fixed or negotiated dollar amount. As of the date of this prospectus, TCI may make revenue sharing payments to brokers and other financial intermediaries equal to a percentage of periodic sales, such as monthly or quarterly sales, ranging from 5 basis points (0.05%) to 45 basis points (0.45%). In 2008, TCI also paid flat annual fees ranging from $7,500 to $87,500 to Suntrust Securities, U.S. Bancorp, Compass Brokerage and Hantz Financial. TCI is also committed to pay to participate in meetings and events of other broker-dealers and banks.

As of December 31, 2008, TCI had such revenue sharing arrangements, with over 25 brokers and other financial intermediaries, of which some of the more significant include: Compass Group, Hantz Financial Services, Merrill Lynch, Morgan Stanley, Natcity Investments, Inc., PNC Financial Services Group, CUNA, CUSO, Eagle One, Fintegra, InterSecurities, Inc., Morgan Keegan, Transamerica Financial Advisors, World Group Securities, Raymond James Financial Services, Raymond James and Associates, LPL Financial, CCO Investments, CitiGroup/Smith Barney, UBS Financial, U.S. Bancorp and Wachovia Securities.

For the calendar year ended December 31, 2008, TCI paid or expects to pay approximately $6,524,866 to various brokers and other financial intermediaries in connection with revenue sharing arrangements.

For the same period, TCI received revenue sharing payments ranging from $6,000 to $49,500 for a total of $398,558 from the following financial services firms to participate in functions, events and meetings, among other things: Alliance Bernstein Investments, Inc., American Century Investments, BlackRock Financial, Evergreen Funds, Federated Investors, Franklin Portfolio Associates, Franklin Templeton, ING Clarion, Jennison Associates, J.P. Morgan, Legg Mason, Lehman Brothers, Marsico Capital Management, MFS Investment Management, Natixis Asset Management Advisors, Oppenheimer Funds, Pacific Investment Management Company, Putnam, Schroders, Transamerica Investment Management, LLC and Van Kampen Investments.

In addition, while TCI typically pays most of the sales charge applicable to the sale of fund shares to brokers and other financial intermediaries through which purchases are made, TCI may, on occasion, pay the entire sales charge. (Additional information about payments of sales charges to brokers is available in the section titled “Dealer Reallowances” of the SAI.)

Also, TAM pays, out of its own assets, financial intermediaries a “trail” fee for servicing and maintenance of accounts of Class T shareholders in Transamerica Equity in an amount equal, on an annual basis, up to 0.10% of average daily net assets held by such Class T shareholders.

From time to time, TCI, its affiliates and/or TAM and/or fund sub-advisers may also pay non-cash compensation to brokers and other financial intermediaries and their sales representatives in the form of, for example: (i) occasional gifts; (ii) occasional meals, tickets or other entertainment; and/or (iii) sponsorship support of broker marketing events. For example, representatives of TCI visit brokers and other financial intermediaries and their sales representatives on a regular basis to educate them about the funds and to encourage the sale of fund shares to their clients. The costs and expenses associated with these efforts may include travel, lodging, sponsorship at educational seminars, meetings and conferences, entertainment and meals to the extent permitted by law.

The non-cash compensation to sales representatives and compensation or reimbursement received by brokers and other financial intermediaries through sales charges, other fees payable from the funds, and/or revenue sharing arrangements for selling shares of the funds may be more or less than the overall compensation or reimbursement on similar or other products and may influence your broker or other financial intermediary to present and recommend the funds over other investment options available in the marketplace. In addition, depending on the arrangements in place at any particular time, your broker or other financial intermediary may have a financial incentive for recommending a particular class of fund shares over other share classes.

Shareholders may obtain more information about these arrangements, including the conflicts of interests that such arrangements may create, from their brokers and other financial intermediaries, and should so inquire if they would like additional information. A shareholder may ask his/her broker or financial intermediary how he/she will be compensated for investments made in the funds.

Although a fund may use financial firms that sell fund shares to effect transactions for the fund’s portfolio, the fund and its investment adviser or sub-adviser will not consider the sale of fund shares as a factor when choosing financial firms to effect those transactions.

Distributions and Taxes

Taxes on Distributions in General

Each fund will distribute all or substantially all of its net investment income and net capital gains to its shareholders each year. Although a fund will not have to pay income tax on amounts it distributes to shareholders, most shareholders will be taxed on amounts they receive. If a fund declares a dividend in October, November, or December payable to shareholders of

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record in such a month, but pays it in the following January, shareholders will be taxed on the dividend as if they received it in the year in which it was declared.

Each fund pays dividend distributions annually in December, except Transamerica Asset Allocation — Conservative Portfolio, Transamerica Balanced and Transamerica Value Balanced each pay dividend distributions quarterly in March, June, September and December; and Transamerica Convertible Securities, Transamerica Flexible Income, Transamerica High Yield Bond, Transamerica Short-Term Bond and Transamerica Money Market each pay dividend distributions monthly. If necessary, each fund may make distributions at other times as well.

You normally will be taxed on distributions you receive from a fund, regardless of whether they are paid to you in cash or are reinvested in additional fund shares.

Current U.S. federal income tax law generally provides for a maximum tax rate for individual taxpayers of 15% on long-term capital gains and on qualified dividend income. These rates do not apply to corporate taxpayers. The following are guidelines for how certain distributions by a fund are generally taxed to individual taxpayers:

n	Distributions of net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) will be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets).
n	Distributions designated by the fund as “qualified dividend income” will also be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets). Qualified dividend income generally is income derived from dividends from U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that a fund receives in respect of stock of certain foreign corporations will be qualified dividend income if that stock is readily tradable on an established U.S. securities market.
n	Other distributions generally will be taxed at the ordinary income tax rate applicable to the shareholder.

The funds will send you a tax report annually summarizing the amount of and the tax aspects of your distributions. If you buy shares of a fund shortly before it makes a distribution (other than distributions paid by Transamerica Money Market that are not paid out of short-term or long-term capital gains), the distribution will be taxable to you even though it may actually be a return of a portion of your investment. This is known as “buying a dividend.”

Investors who invest through tax-deferred accounts, such as IRAs, 403(b) accounts, and qualified retirement plans, will ordinarily not be subject to tax until a distribution is made from the account, at which time such distribution is generally taxed as ordinary income. These accounts are subject to complex tax rules and a tax-deferred account investor should consult their tax advisers regarding their investments in a tax-deferred account.

You must provide your taxpayer identification number to the fund along with certifications required by the Internal Revenue Service upon your investment in Fund shares.

The asset allocation funds (offered in this prospectus) can have income, gains or losses from any distributions or redemptions in the underlying funds. Distributions of net capital gains or qualifying dividends of either the asset allocation funds or underlying funds will generally be taxed at long-term capital gain rates. Other distributions, including short-term capital gains, generally will be taxed as ordinary income. The structure of the asset allocation funds and the reallocation of investments among underlying funds could affect the amount, timing and character of distributions.

Taxes on the Sale or Exchange of Shares

If you sell shares of a fund or exchange them for shares of another fund, you generally will have a capital gain or loss, which will be a long-term capital gain or loss if you held the shares for more than one year; otherwise it will generally be a short-term capital gain or loss. Such gain or loss is computed by subtracting your tax basis in the shares from the redemption proceeds in the case of a sale or the value of the shares received in the case of an exchange. Because your tax basis depends on the original purchase price and on the price at which any dividends may have been reinvested, you should be sure to keep account statements so that you or your tax return preparer will be able to determine whether a sale will result in a taxable gain. Any loss recognized on shares held for six months or less will be treated as a long-term capital loss to the extent of any amounts treated as distributions of long-term capital gain that were received with respect to the shares, including distributions of net capital gain and any amounts credited to you as undistributed capital gain.

Note that money market funds typically maintain a stable net asset value of $1.00 per share. Assuming Transamerica Money Market maintains a stable net asset value, you will typically not recognize gain or loss upon the sale, redemption, or exchange of shares of this fund.

Withholding Taxes

As with all mutual funds, the funds may be required to apply backup withholding of U.S. federal income tax at the fourth lowest tax rate applicable to unmarried individuals (currently 28%) on all taxable distributions payable to you if you fail to provide the funds with your correct taxpayer identification number or to make required certifications, or if you have been notified by the IRS that you are subject to backup withholding. Backup withholding is not an additional tax, but is a method by which the IRS ensures that it will collect taxes otherwise due. Any amounts withheld may be credited against your U.S. federal income tax liability.

Non-Resident Alien Withholding

If you are a non-U.S. investor, you must provide a U.S. mailing address to establish an account unless your broker-dealer firm submits your account through the National Securities Clearing Corporation. Your broker-dealer will be required to submit a foreign certification form. Investors changing a mailing address to a non-U.S. address will be required to have a foreign certification form completed by their broker-dealer and returned to us before future purchases can be accepted. Shareholders that are not U.S. investors under the federal tax laws may be subject to U.S. withholding taxes on certain distributions and are generally subject to U.S. tax

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certification requirements. Additionally, you will need to provide the appropriate tax form (generally, Form W-8BEN) and documentary evidence if you are not a U.S. citizen or U.S. resident alien.

Other Tax Information

This tax discussion is for general information only. In addition to federal income taxes, you may be subject to state, local or foreign taxes on payments received from, and investments made in, shares of a Transamerica fund. More information is provided in the SAI of the funds. You should also consult your own tax adviser for information regarding all tax consequences applicable to your investments in Transamerica Funds.

Asset Allocation Funds

The asset allocation funds, Transamerica Asset Allocation – Conservative Portfolio, Transamerica Asset Allocation – Moderate Portfolio, Transamerica Asset Allocation – Moderate Growth Portfolio, Transamerica Asset Allocation – Growth Portfolio, Transamerica Multi-Manager International Portfolio and Transamerica Multi-Manager Alternative Strategies Portfolio, as well as Transamerica Asset Allocation – Conservative VP, Transamerica Asset Allocation – Growth VP, Transamerica Asset Allocation – Moderate Growth VP, Transamerica Asset Allocation – Moderate VP and Transamerica International Moderate Growth VP, each separate series of Transamerica Series Trust, may own a significant portion of the shares of a Transamerica fund. Transactions by the asset allocation funds may be disruptive to the management of an underlying Transamerica fund.

Investment Policy Changes

Transamerica Equity, Transamerica Science & Technology, Transamerica Small/Mid Cap Value, Transamerica High Yield Bond, Transamerica Convertible Securities, and Transamerica Short-Term Bond, as part of each fund’s investment policy, invest at least 80% of its assets (defined as net assets plus the amount of any borrowings for investment purposes) in certain investments as indicated in this prospectus. Shareholders will be provided with at least 60 days’ prior written notice of any changes in the 80% investment policy. Such notice will comply with the conditions set forth in any applicable SEC rules then in effect.

Unless expressly designated as fundamental, all policies and procedures of the funds, including their investment objectives, may be changed at any time by Transamerica Funds’ Board of Trustees without shareholder approval. The investment strategies employed by a fund may also be changed without shareholder approval.

To the extent authorized by law, Transamerica Funds and each of the funds reserve the right to discontinue offering shares at any time, to merge a class of shares, or to cease operations entirely.

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Appendix A

More on Strategies and Risks

HOW TO USE THIS SECTION

In the discussions of the individual fund(s), you found descriptions of the principal strategies and risks associated with such fund(s). In those pages, you were referred to this section for more information. For best understanding, first read the description of the fund you are interested in, then refer to this section. For even more discussions of strategies and risks, see the SAI, which is available upon request. See the back cover of this prospectus for information on how to order the SAI.

ASSET ALLOCATION FUNDS AS INVESTORS

Some of the funds described in this prospectus are offered for investment to strategic asset allocation funds. These strategic asset allocation funds may own a significant portion of the assets of the funds. Transactions by the strategic allocation funds, such as rebalancings or redemptions, may be disruptive to a fund. Redemptions by one or more strategic allocation funds also may have the effect of rendering a fund too small effectively to pursue its investment goal, and may also increase the fund’s expenses, perhaps significantly.

DIVERSIFICATION

The Investment Company Act of 1940 (1940 Act) classifies investment companies as either diversified or non-diversified. Diversification is the practice of spreading a fund’s assets over a number of issuers to reduce risk. A non-diversified fund has the ability to take larger positions in fewer issuers. Because the appreciation or depreciation of a single security may have a greater impact on the net asset value of a non-diversified fund, its share price can be expected to fluctuate more than a diversified fund. All of the funds, except Transamerica Legg Mason Partners All Cap and Transamerica Science & Technology, qualify as diversified funds under the 1940 Act (although the asset allocation funds qualify as diversified funds under the 1940 Act, certain of the underlying funds in which they invest do not).

Transamerica Legg Mason Partners All Cap and Transamerica Science & Technology each reserves the right to become a diversified investment company (as defined by the 1940 Act).

ASSET ALLOCATION FUNDS

The asset allocation funds’ Portfolio Construction Manager allocates each asset allocation fund’s assets among underlying funds. These allocations may not be successful. For example, the underlying funds may underperform other funds or investment options, or an asset allocation fund may be underweighted in underlying funds that are enjoying significant returns and overweighted in underlying funds that are suffering from significant declines.

UNDERLYING FUNDS

An asset allocation fund’s ability to achieve its objective depends largely on the performance of the underlying funds in which it invests, a pro rata portion of whose operating expenses the asset allocation fund bears. Each underlying fund’s performance, in turn, depends on the particular securities in which that underlying fund invests. Accordingly, each asset allocation fund is subject indirectly to all the risks associated with its underlying funds. These risks include the risks described herein. In addition, an asset allocation fund may own a significant portion of the shares of the underlying funds in which it invests. Transactions by an asset allocation fund may be disruptive to the management of these underlying funds, which may experience large inflows or redemptions of assets as a result. An asset allocation fund’s investments may have an impact on the operating expenses of the underlying funds and may generate or increase the levels of taxable returns recognized by the asset allocation fund or an underlying fund.

INVESTING IN COMMON STOCKS

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. Many factors may cause common stocks to go up and down in price. A major factor is the financial performance of the company that issues the stock. Other factors include the overall economy, conditions in a particular industry, and monetary factors like interest rates. Because the stocks a fund may hold fluctuate in price, the value of a fund’s investments will go up and down.

INVESTING IN PREFERRED STOCKS

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

INVESTING IN CONVERTIBLE SECURITIES

Since preferred stocks and corporate bonds generally pay a stated return, their prices usually do not depend on the price of the company’s common stock. But some companies issue preferred stocks and bonds that are convertible into their common stocks. Linked to the common stock in this way, convertible securities typically go up and down in price as the common stock does, adding to their market risk. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

VOLATILITY

The more an investment goes up and down in price, the more volatile it is said to be. Volatility increases the market risk (i.e., the risk of loss due to fluctuation in value) because even though your fund may go up more than the market in good times, it may also

APPENDIX A-1

Appendix A

More on Strategies and Risks

go down more than the market in bad times. If you decide to sell when a volatile fund is down, you could lose more. Price changes may be temporary or for extended periods.

INVESTING IN BONDS

Like common stocks, bonds fluctuate in value, although the factors causing this may be different, including:

n	CHANGES IN INTEREST RATES.  Bond prices tend to move inversely to interest rates. Why? Because when interest rates on new bond issues go up, rates on existing bonds stay the same and they become less desirable. When rates go down, the reverse happens. This is also true for most preferred stocks and some convertible securities.
n	LENGTH OF TIME TO MATURITY.  When a bond matures, the issuer must pay the owner its face value. If the maturity date is a long way off, many things can affect its value, so a bond generally is more volatile the farther it is from maturity. As that date approaches, fluctuations usually become smaller and the price gets closer to face value.
n	DEFAULTS.  Bond issuers make at least two promises: (1) to pay interest during the bond’s term; and (2) to return principal when it matures. If an issuer fails to keep one or both of these promises, the bond will probably drop in price dramatically, and may even become worthless.
n	DECLINES IN RATINGS.  At the time of issue, most bonds are rated by professional rating services, such as Moody’s Investors Service (“Moody’s”) and Standard & Poors Ratings Group (“S&P”). The stronger the financial backing behind the bond, the higher the rating. If this backing is weakened or lost, the rating service may downgrade the bond’s rating. This is virtually certain to cause the bond to drop in price.
n	LOW QUALITY.  High-yield/high-risk securities (commonly known as “junk bonds”) have greater credit risk; are more sensitive to interest rate movements; are considered more speculative; have a greater vulnerability to economic changes, subject to greater price volatility; and are less liquid than higher quality fixed-income securities. These securities may be more susceptible to credit risk and market risk than higher quality debt securities because their issuers may be less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for higher quality debt securities. As a result, a sub-adviser of a fund may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.
n	LOSS OF LIQUIDITY.  If a bond is downgraded, or for other reasons drops in price, or if the bond is a type of investment that falls out of favor with investors, the market demand for it may “dry up.” In that case, the bond may be hard to sell or “liquidate” (convert to cash). Please see Appendix B for a description of bond ratings.

INVESTING IN FOREIGN SECURITIES

Foreign securities are investments offered by non-U.S. companies, governments and government agencies. They involve risks in addition to those associated with securities of domestic issuers, including:

n	CHANGES IN CURRENCY VALUES.  Foreign securities may be sold in currencies other than U.S. dollars. If a currency’s value drops relative to the dollar, the value of your fund shares could drop too. Also, dividend and interest payments may be lower. Factors affecting exchange rates include, without limitation: differing interest rates among countries; balances of trade; amount of a country’s overseas investments; and intervention by banks. Some funds also invest in American Depositary Receipts (“ADRs”) and American Depositary Shares (“ADSs”). They represent securities of foreign companies traded on U.S. exchanges, and their values are expressed in U.S. dollars. Changes in the value of the underlying foreign currency will change the value of the ADRs or ADSs. The fund may incur costs when it converts other currencies into dollars, and vice-versa.
n	CURRENCY SPECULATION.  The foreign currency market is largely unregulated and subject to speculation. A fund’s investments in foreign currency-denominated securities may reduce the returns of the fund.
n	DIFFERING ACCOUNTING AND REPORTING PRACTICES.  Foreign tax laws are different, as are laws, practices and standards for accounting, auditing and reporting data to investors.
n	LESS INFORMATION AVAILABLE TO THE PUBLIC.  Foreign companies usually make far less information available to the public.
n	LESS REGULATION.  Securities regulations in many foreign countries are more lax than in the U.S. In addition, regulation of banks and capital markets can be weak.
n	MORE COMPLEX NEGOTIATIONS.  Because of differing business and legal procedures, a fund might find it hard to enforce obligations or negotiate favorable brokerage commission rates.
n	LESS LIQUIDITY/MORE VOLATILITY.  Some foreign securities are harder to convert to cash than U.S. securities, and their prices may fluctuate more dramatically.
n	SETTLEMENT DELAYS.  “Settlement” is the process of completing payment and delivery of a securities transaction. In many countries, this process takes longer than it does in the U.S.
n	HIGHER CUSTODIAL CHARGES.  Fees charged by the fund’s custodian for holding shares are higher for foreign securities than those of domestic securities.
n	VULNERABILITY TO SEIZURE AND TAXES.  Some governments can seize assets. They may also limit movement of assets from the country. Fund interest, dividends and capital gains may be subject to foreign withholding taxes.

APPENDIX A-2

Appendix A

More on Strategies and Risks

n   POLITICAL OR FINANCIAL INSTABILITY AND SMALL MARKETS.  Developing countries can be politically unstable. Economies can be dominated by a few industries, and markets may trade a small number of securities.

n   DIFFERENT MARKET TRADING DAYS.  Foreign markets may not be open for trading the same days as U.S. markets are open, and asset values can change before a transaction occurs.

n   CURRENCY HEDGING.  A fund may enter into forward currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting a fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

n   EMERGING MARKETS RISK.  Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign exposure risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries typically are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid, more difficult to value and more volatile than investments in developed countries. In addition, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

INVESTING IN FUTURES, OPTIONS AND OTHER DERIVATIVES

Besides conventional securities, your fund may seek to increase returns by investing in financial contracts related to its primary investments. Such contracts, which include futures and options, involve additional risks and costs. Risks include, without limitation:

DERIVATIVES.  Certain of the funds use derivative instruments as part of their investment strategy. Generally, derivatives are financial contracts whose value depends upon, or is derived from, the value of an underlying asset, reference rate or index, and may relate to stocks, bonds, interest rates, currencies or currency exchange rates, commodities, and related indexes. Examples of derivative instruments include option contracts, futures contracts, options on futures contracts and swap agreements (including, but not limited to, credit default swaps). There is no assurance that the use of any derivatives strategy will succeed. Also, investing in financial contracts involve additional risks and costs, such as inaccurate market predictions which may result in losses instead of gains, and prices may not match so the benefits of the transaction might be diminished and a fund may incur substantial losses.

Swap transactions are privately negotiated agreements between a fund and a counterparty to exchange or swap investment cash flows or assets at specified intervals in the future. The obligations may extend beyond one year. There is no central exchange or market for swap transactions; and, therefore, they are less liquid investment than exchange-traded instruments. A fund bears the risk that the counterparty could default under a swap agreement. Further, certain funds may invest in derivative debt instruments with principal and/or coupon payments linked to the value of commodities, commodity futures contracts or the performance of commodity indices. These are “commodity-linked” or “index-linked” notes. They are sometimes referred to as “structured notes” because the terms of the debt instrument may be structured by the issuer of the note and the purchaser of the note. The value of these notes will rise and fall in response to changes in the underlying commodity or related index or investment. These notes expose a fund economically to movements in commodity prices. These notes are subject to risks, such as credit, market and interest rate risks, that in general affect the value of debt securities. Therefore, at the maturity of the note, a fund may receive more or less principal that it originally invested. A fund might receive interest payments on the note that are more or less than the stated coupon interest payments.

A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other more traditional investments. The following provides a general discussion of important risk factors relating to all derivative instruments that may be used by the funds:

n

MANAGEMENT RISK.  Derivative products are highly specialized instruments that require investment techniques and risk analyses different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but also of the derivative itself, without the benefit of observing the performance of the derivative under all possible market conditions.

n

CREDIT RISK.  The use of a derivative instrument involves the risk that a loss may be sustained as a result of the failure of another party to the contract (counterparty) to make required payments or otherwise comply with the contract’s terms. Additionally, credit default swaps could result in losses if a fund does not correctly evaluate the creditworthiness of the company on which the credit default swap is based.

n   LIQUIDITY RISK.  Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

APPENDIX A-3

Appendix A

More on Strategies and Risks

n   LEVERAGE RISK.  When the fund engages in transactions that have a leveraging effect on the fund’s portfolio, the value of the fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the fund would otherwise have. The fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause the fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

n

LACK OF AVAILABILITY.  Suitable derivatives transactions may not be available in all circumstances for risk management or other purposes. There is no assurance that a fund will engage in derivatives transactions at any time or from time to time. A fund’s ability to use derivatives may be limited by certain regulatory and tax considerations.

n

MARKET AND OTHER RISKS.  Like most other investments, derivative instruments are subject to the risk that the market value of the instrument will change in a way that is detrimental to a fund’s interest. If a fund manager incorrectly forecasts the value of securities, currencies or interest rates or other economic factors in using derivatives for a fund, the fund might have been in a better position if it had not entered into the transaction at all. While some strategies involving derivative instruments can reduce the risk of loss, the can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in other fund investments. A fund may also have to buy or sell a security at a disadvantageous time or price because the fund is legally required to maintain offsetting positions or asset coverage in connection with certain derivative transactions.

Other risks in using derivatives include the risk of mis-pricing or improper valuation of derivatives and the lack of correlation with underlying assets, rates and indexes. Many derivatives, in particular privately negotiated derivatives, are complex and often valued subjectively. Improper valuations can result in increased cash payment requirements to counterparties or a loss of value to a fund. Also, the value of derivatives may not correlate perfectly, or at all, with the value of the assets, reference rates or indexes they are designed to closely track. In addition, a fund’s use of derivatives may cause the fund to realize higher amounts of short-term capital gains (generally taxed at ordinary income tax rates) than if the fund had not used such instruments.

INVESTING IN HYBRID INSTRUMENTS

Hybrid instruments combine elements of derivative contracts with those of another security (typically a fixed-income security). All or a portion of the interest or principal payable on a hybrid security is determined by reference to changes in the price of an underlying asset or by reference to another benchmark (such as interest rates, currency exchange rates or indices). Hybrid instruments also include convertible securities with conversion terms related to an underlying asset or benchmark. The risks of investing in hybrid instruments may reflect a combination of the risks of investing in securities, derivatives, and currencies. Thus, an investment in a hybrid instrument may entail significant risks in addition to those associated with traditional securities. Hybrid instruments are also potentially more volatile and may carry greater interest rate risks than traditional instruments. Moreover, depending on the structure of the particular hybrid, it may expose a fund to leverage risks or carry liquidity risks.

INVESTING IN FORWARD FOREIGN CURRENCY CONTRACTS

A forward foreign currency contract is an agreement between contracting parties to exchange an amount of currency at some future time at an agreed upon rate. These contracts are used as a hedge against fluctuations in foreign exchange rates. Hedging against a decline in the value of a currency does not eliminate fluctuations in the prices of securities, or prevent losses if the prices of the fund’s securities decline. Such hedging transactions preclude the opportunity for a gain if the value of the hedging currency should rise. Forward contracts may, from time to time, be considered illiquid, in which case they would be subject to the fund’s limitations on investing in illiquid securities. If a fund’s manager makes the incorrect prediction, the opportunity for loss can be magnified.

INVESTING IN FIXED-INCOME INSTRUMENTS

Some funds invest in “Fixed-Income Instruments,” which include, among others:

n   securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises, including issues by non-government-sponsored entities (like financial institutions) that carry direct guarantees from U.S. government agencies as part of government initiatives in response to the market crisis or otherwise (“U.S. Government Securities”);

n	corporate debt securities of U.S. and non-U.S. issuers, including convertible securities and corporate commercial paper;
n	mortgage-backed and other asset-backed securities;
n	inflation-indexed bonds issued both by governments and corporations;
n	structured notes, including hybrid or “indexed” securities, event-linked bonds and loan participations;
n	delayed funding loans and revolving credit facilities;
n	bank certificates of deposit, fixed time deposits and bankers’ acceptances;
n	repurchase agreements and reverse repurchase agreements;
n	debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises;
n	obligations of non-U.S. governments or their subdivisions, agencies and government-sponsored enterprises; and
n	obligations of international agencies or supranational entities.

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

n   market risk: fluctuations in market value

n   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity

APPENDIX A-4

Appendix A

More on Strategies and Risks

or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

n	prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities
n	extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

n   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Some funds also may invest in derivatives based on fixed-income instruments.

SOVEREIGN DEBT

Sovereign debt instruments, which are debt obligations issued or guaranteed by a foreign governmental entity, are subject to the risk that the governmental entity may delay or fail to pay interest or repay principal on debt that it has issued or guaranteed, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, relationships with other lenders such as commercial banks, the relative size of the governmental entity’s debt position in relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. If a governmental entity defaults, it may ask for more time in which to pay or for further loans, or it may ask for forgiveness of interest or principal on its existing debt. On the other hand, a governmental entity may be unwilling to renegotiate the terms of its sovereign debt. There may be no established legal process for a U.S. bondholder (such as the fund) to enforce its rights against a governmental entity that does not fulfill its obligations, nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected.

INVESTING IN STRUCTURED SECURITIES

Some funds may invest in various types of structured instruments, including securities that have demand, tender or put features, or interest rate rest features. Structured instruments may take the form of participation interests or receipts in underlying securities or other assets, and in some cases are backed by a financial institution serving as a liquidity provider. Some of these instruments may have an interest rate swap feature which substitutes a floating or variable interest rate for the fixed interest rate on an underlying security, and some may be asset-backed or mortgage-backed securities. Structured instruments are a type of derivative instrument and the payment and credit qualities of these instruments derive from the assets embedded in the structure from which they are issued.

SUBORDINATION RISK

Some funds may invest in securities, such as certain structured securities or high-yield debt securities, which are subordinated to more senior securities of the issuer, or which represent interests in pools of such subordinated securities. Under the terms of subordinated securities, payments that would otherwise be made to their holders may be required to be made to the holders of more senior securities, and/or the subordinated or junior securities may have junior liens, if they have any rights at all, in any collateral (meaning proceeds of the collateral are required to be paid first to the holders of more senior securities). Subordinated securities will be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

INVESTING IN WARRANTS AND RIGHTS

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

INVESTING IN DISTRESSED SECURITIES

Certain funds may invest in distressed securities. Distressed securities are speculative and involve substantial risks. Generally, a fund will invest in distressed securities when the sub-adviser believes they offer significant potential for higher returns or can be exchanged for other securities that offer this potential. However, there can be no assurance that a fund will achieve these returns or that the issuer will make an exchange offer or adopt a plan of reorganization. A fund will generally not receive interest payments on the distressed securities and may incur costs to protect its investment. In addition, distressed securities involve the substantial risk that principal will not be repaid. Distressed securities and any securities received in an exchange for such securities may be subject to restrictions on resale.

APPENDIX A-5

Appendix A

More on Strategies and Risks

ZERO COUPON SECURITIES

Zero coupon securities do not pay interest or principal until final maturity unlike debt securities that provide periodic payments of interest (referred to as coupon payments).

Investors buy zero coupon securities at a price below the amount payable at maturity. The difference between the purchase price and the amount paid at maturity represents interest on the zero coupon security. Investors must wait until maturity to receive interest and principal, which exposes investors to risks of payment default and volatility.

VARIABLE RATE DEMAND INSTRUMENTS

Variable rate demand instruments are securities that require the issuer or a third party, such as a dealer or bank, to repurchase the security for its face value upon demand. Investors in these securities are subject to the risk that the dealer or bank may not repurchase the instrument. The securities also pay interest at a variable rate intended to cause the securities to trade at their face value. The funds treat demand instruments as short-term securities because their variable interest rate adjusts in response to changes in market rates even though their stated maturity may extend beyond 13 months.

CREDIT ENHANCEMENT

Credit enhancement consists of an arrangement in which a company agrees to pay amounts due on a fixed-income security if the issuer defaults. In some cases the company providing credit enhancement makes all payments directly to the security holders and receives reimbursement from the issuer. Normally, the credit enhancer has greater financial resources and liquidity than the issuer. For this reason, the sub-adviser usually evaluates the credit risk of a fixed-income security based solely upon its credit enhancement.

INVESTING IN SMALL- OR MEDIUM-SIZED COMPANIES

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

INVESTING IN SMALL, UNSEASONED COMPANIES

Small, unseasoned companies are described as companies that have been in operation less than three years, including the operations of any predecessors. These securities might have limited liquidity and their prices may be very volatile.

INVESTING IN PRECIOUS METAL RELATED SECURITIES

Prices of precious metals and of precious metal related securities historically have been very volatile. The high volatility of precious metal prices may adversely affect the financial condition of companies involved with precious metals. The production and sale of precious metals by governments or central banks or other larger holders can be affected by various economic, financial, social and political factors, which may be unpredictable and may have a significant impact on the prices of precious metals. Other factors that may affect the prices of precious metals and securities related to them include changes in inflation, the outlook for inflation and changes in industrial and commercial demand for precious metals.

INVESTING IN MORTGAGE-RELATED SECURITIES

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

INVESTING IN ASSET-BACKED SECURITIES

Some funds may purchase asset-backed securities. Asset-backed securities have many of the same characteristics and risks as the mortgage-related securities described above, except that asset-backed securities may be backed by non-real-estate loans, leases or receivables such as auto, credit card or home equity loans.

APPENDIX A-6

Appendix A

More on Strategies and Risks

INVESTING IN REAL ESTATE SECURITIES

Real estate markets have been particularly affected by the financial crisis. Investments in the real estate industry are subject to risks associated with direct investment in real estate. These risks include:

n	declining real estate value
n	risks relating to general and local economic conditions
n	over-building
n	increased competition for assets in local and regional markets
n	increases in property taxes
n	increases in operating expenses or interest rates
n	change in neighborhood value or the appeal of properties to tenants
n	insufficient levels of occupancy
n	inadequate rents to cover operating expenses

The performance of securities issued by companies in the real estate industry also may be affected by management of insurance risks, adequacy of financing available in capital markets, management, changes in applicable laws and government regulations (including taxes) and social and economic trends.

INVESTING IN REAL ESTATE INVESTMENT TRUSTS (“REITS”)

Real estate markets have been particularly affected by the financial crisis. Equity REITs can be affected by any changes in the value of the properties owned. A REIT’s performance depends on the types and locations of the properties it owns and on how well it manages those properties or loan financings. A decline in rental income could occur because of extended vacancies, increased competition from other properties, tenants’ failure to pay rent or poor management. A REIT’s performance also depends on the company’s ability to finance property purchases and renovations and manage its cash flows. Because REITs are typically invested in a limited number of projects or in a particular market segment, they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. Loss of status as a qualified REIT or changes in the treatment of REITs under the federal tax law could adversely affect the value of a particular REIT or the market for REITs as a whole.

INVESTING IN OTHER INVESTMENT COMPANIES

To the extent that a fund, including an asset allocation fund, invests in other investment companies, including exchange-traded funds, it bears its pro rata share of these investment companies’ expenses and is subject to the effects of the business and regulatory developments that affect these investment companies and the investment company industry generally.

INVESTING IN EXCHANGE-TRADED FUNDS (“ETFS”)

An investment in an ETF generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange-traded) that has the same investment objectives, strategies and policies. The price of an ETF can fluctuate up and down, and a fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs are subject to the following risks that do not apply to conventional funds: (i) the market price of an ETF’s shares may trade above or below their net asset value; (ii) an active trading market for an ETF’s shares may not develop or be maintained; or (iii) trading of an ETF’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.

INVESTING IN LOANS

Certain funds may invest in certain commercial loans, including loans generally known as “syndicated bank loans,” by acquiring participations or assignments in such loans. The lack of a liquid secondary market for such securities may have an adverse impact on the value of the securities and a fund’s ability to dispose of particular assignments or participations when necessary to meet redemptions of shares or to meet the fund’s liquidity needs. When purchasing a participation, a fund may be subject to the credit risks of both the borrower and the lender that is selling the participation. When purchasing a loan assignment, a fund acquires direct rights against the borrowers, but only to the extent of those held by the assigning lender. Investment in loans through a direct assignment from the financial institution’s interests with respect to a loan may involve additional risks to a fund. It is also unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive regulatory guidance, a fund relies on its sub-adviser’s research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the fund.

INVESTING IN ASSET-BASED SECURITIES-NATURAL RESOURCES

Asset-based securities are fixed income securities whose value is related to the market price of a certain natural resource, such as a precious metal. Although the market price of these securities is expected to follow the market price of the related resource, there may not be perfect correlation.

If an asset-based security is backed by a bank letter of credit or other similar facility, the fund sub-adviser may take such backing into account in determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in the two price movements. Asset-based securities may not be secured by a security interest in or claim on the underlying natural resource asset. The asset-based securities in which a fund may invest may bear interest or pay preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the asset to which it is related. In such instance, because no fund presently intends to invest directly in natural resource assets, a fund would sell the asset-based security in the secondary market, to the extent one exists, prior to maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the appreciation in the underlying asset.

APPENDIX A-7

Appendix A

More on Strategies and Risks

There are special risks associated with certain types of natural resource assets that will also affect the value of asset-based securities related to those assets. For example, prices of precious metals and of precious metal related securities historically have been very volatile, which may adversely affect the financial condition of companies involved with precious metals. The production and sale of precious metals by governments or central banks or other larger holders can be affected by various economic, financial, social and political factors, which may be unpredictable and may have a significant impact on the prices of precious metals. Other factors that may affect the prices of precious metals and securities related to them include changes in inflation, the outlook for inflation and changes in industrial and commercial demand for precious metals.

Certain funds may invest in the equity securities of companies that explore for, extract, process or deal in precious metals (e.g., gold, silver and platinum), and in asset-based securities indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability. Based on historical experience, during periods of economic or financial instability the securities of companies involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies.

The major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia. Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather than to market forces. Economic, financial, social and political factors within South Africa may significantly affect South African gold production.

SWAPS AND SWAP-RELATED PRODUCTS

A fund’s sub-adviser may enter into swap transactions primarily to attempt to preserve a return or spread on a particular investment or portion of its fund. A fund also may enter into these transactions to attempt to protect against any increase in the price of securities the fund may consider buying at a later date.

n

COMMODITY SWAPS.  An investment in a commodity swap agreement may, for example, involve the exchange of floating-rate interest payments for the total return on a commodity index. In a total return commodity swap, a fund will receive the price appreciation of a commodity index, a portion of the index, or a single commodity in exchange for paying an agreed-upon fee. If the commodity swap is for one period, the fund may pay a fixed fee, established at the outset of the swap. However, if the term of the commodity swap is more than one period, with interim swap payments, the fund may pay an adjustable or floating fee. With a “floating” rate, the fee may be pegged to a base rate, such as the London Interbank Offered Rate, and is adjusted each period. Therefore, if interest rates increase over the term of the swap contract, the fund may be required to pay a higher fee at each swap reset date.

n

INTEREST RATE SWAPS.  Interest rate swaps involve the exchange by a fund with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments. The exchange commitments can involve payments to be made in the same currency or in different currencies. The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index exceeds a predetermined interest rate, to receive payments of interest on a contractually based principal amount from the party selling the interest rate cap. The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a predetermined interest rate, to receive payments of interest on a contractually based principal amount from the party selling the interest rate floor.

A fund, subject to its investment restrictions, enters into interest rate swaps, caps and floors on either an asset-based or liability-based basis, depending upon whether it is hedging its assets or its liabilities, and will usually enter into interest rate swaps on a net basis (i.e., the two payment streams are netted out, with a fund receiving or paying, as the case may be, only the net amount of the two payments). The net amount of the excess, if any, of a fund’s obligations over its entitlements with respect to each interest rate swap, will be calculated on a daily basis. An amount of cash or other liquid assets having an aggregate net asset value at least equal to the accrued excess will be segregated by its custodian. If a fund enters into an interest rate swap on other than a net basis, it will maintain a segregated account in the full amount accrued on a daily basis of its obligations with respect to the swap.

A fund will not enter into any interest rate swap, cap or floor transaction unless the unsecured senior debt or the claims-paying ability of the other party thereto is rated in one of the three highest rating categories of at least one nationally recognized statistical rating organization at the time of entering into such transaction. A fund’s sub-adviser will monitor the creditworthiness of all counterparties on an ongoing basis. If there is a default by the other party to such a transaction, the fund will have contractual remedies pursuant to the agreements related to the transaction.

The swap market has grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. Caps and floors are more recent innovations for which standardized documentation has not yet been developed and, accordingly, they are less liquid than swaps. To the extent a fund sells (i.e., writes) caps and floors, it will segregate cash or other liquid assets having an aggregate net asset value at least equal to the full amount, accrued on a daily basis, of its obligations with respect to any caps or floors.

There is no limit on the amount of interest rate swap transactions that may be entered into by a fund, unless so stated in its investment objectives. These transactions may in some instances involve the delivery of securities or other underlying assets by a fund or its counterparty to collateralize obligations under the swap. Under the documentation currently used in those markets,

APPENDIX A-8

Appendix A

More on Strategies and Risks

the risk of loss with respect to interest rate swaps is limited to the net amount of the interest payments that a fund is contractually obligated to make. If the other party to an interest rate swap that is not collateralized defaults, a fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. A fund may buy and sell (i.e., write) caps and floors without limitation, subject to the segregation requirement described above.

ILLIQUID AND RESTRICTED/144A SECURITIES

Certain funds may invest in illiquid securities (i.e., securities that are not readily marketable). In recent years, a large institutional market has developed for certain securities that are not registered under the Securities Act of 1933 (the “1933 Act”). Institutional investors generally will not seek to sell these instruments to the general public, but instead will often depend on an efficient institutional market in which such unregistered securities can readily be resold or on an issuer’s ability to honor a demand for repayment. Therefore, the fact that there are contractual or legal restrictions on resale to the general public or certain institutions is not dispositive of the liquidity of such investments. Rule 144A under the 1933 Act established a “safe harbor” from the registration requirements of the 1933 Act for resale of certain securities to qualified institutional buyers. Institutional markets for restricted securities that might develop as a result of Rule 144A could provide both readily ascertainable values for restricted securities and the ability to liquidate an investment in order to satisfy share redemption orders. An insufficient number of qualified institutional buyers interested in purchasing a Rule 144A-eligible security held by a fund could, however, adversely affect the marketability of such security and the fund might be unable to dispose of such security promptly or at reasonable prices.

INVESTING IN MASTER LIMITED PARTNERSHIPS

Holders of MLP units have limited control and voting rights, similar to those of a limited partner. An MLP could be taxed, contrary to its intention, as a corporation, resulting in decreased returns. MLPs may, for tax purposes, affect the character of the gain and loss realized by a fund and affect the holding period of a fund’s assets.

INVESTING IN SPECIAL SITUATIONS

Certain funds may invest in “special situations” from time to time. Special situations arise when, in the opinion of a fund manager, a company’s securities may be undervalued, then potentially increase considerably in price, due to:

n	a new product or process;
n	a management change;
n	a technological breakthrough;
n	an extraordinary corporate event; or
n	a temporary imbalance in the supply of, and demand for, the securities of an issuer.

Investing in a special situation carries an additional risk of loss if the expected development does not happen or does not attract the expected attention. The impact of special situation investing to a fund will depend on the size of the fund’s investment in a situation.

TAX-EFFICIENT MANAGEMENT

Certain sub-advisers strive to manage certain of the funds in a tax-efficient manner. Each relevant fund seeks to minimize capital gains distributions through its investment strategy. To do so, sub-advisers generally seek to follow the following strategies:

(1)	Whenever the sub-adviser intends to make a sale, the sub-adviser will seek to always sell the highest cost lots; when the manager expects the sale will result in a capital gain, the manager looks for a capital loss that can be taken in another stock where the sale also makes economic sense.
(2)	When taxable dividends and interest accumulates, the sub-adviser looks for short term losses to take to offset the income. In either case, the sub-adviser tries to accomplish this tax efficiency without compromising the investment opportunity in the fund.

There is no guarantee an attempt to manage a fund portfolio in a tax-efficient manner will be successful.

PORTFOLIO TURNOVER

A fund may engage in a significant number of short-term transactions, which may lower fund performance. High turnover rate will not limit a manager’s ability to buy or sell securities for these funds. Increased turnover (100% or more) results in higher brokerage costs or mark-up charges for a fund. The funds ultimately pass these charges on to shareholders. Short-term trading may also result in short-term capital gains, which are taxed as ordinary income to shareholders.

COUNTRY, SECTOR OR INDUSTRY FOCUS

Unless otherwise stated in a fund’s prospectus or SAI, as a fundamental policy governing concentration, no fund will invest more than 25% of its total assets in any one particular industry other than U.S. Government securities and its agencies (although the asset allocation funds may invest in underlying funds that may concentrate their investments in a particular industry). In addition, to the extent a fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the country, sector or industry than if the fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, technology companies involve risks due to factors such as the rapid pace of product change, technological developments and new competition. Their stocks historically have been volatile in price, especially over the short term, often without regard to the merits of individual companies. Banks and financial institutions are subject to potentially restrictive governmental controls and regulations that may limit or adversely affect profitability and share price. In addition, securities in that sector may be very sensitive to interest rate changes throughout the world.

APPENDIX A-9

Appendix A

More on Strategies and Risks

SECURITIES LENDING

Certain funds may lend securities to other financial institutions that provide cash or other securities as collateral. This involves the risk that the borrower may fail to return the securities in a timely manner or at all. As a result, a fund may lose money and there may be a delay in recovering the loaned securities. A fund could also lose money if it does not recover the securities and/or the value of the collateral falls, including the value of investments made with cash collateral. These events could trigger adverse tax consequences to a fund.

IPOs

Initial public offerings (“IPOs”) are subject to specific risks which include, among others:

n	high volatility;
n	no track record for consideration;
n	securities may be illiquid; and
n	earnings are less predictable.

TEMPORARY DEFENSIVE STRATEGIES

For temporary defensive purposes, a fund may, at times, choose to hold some or all of its assets in cash, or to invest that cash in a variety of debt securities. This may be done as a defensive measure at times when desirable risk/reward characteristics are not available in stocks or to earn income from otherwise uninvested cash. When a fund increases its cash or debt investment position, its income may increase while its ability to participate in stock market advances or declines decrease. Furthermore, when a fund assumes a temporary defensive position it may not be able to achieve its investment objective.

INTERNET OR INTRANET SECTOR RISK

Certain funds may invest primarily in companies engaged in Internet and Intranet related activities. The value of such companies is particularly sensitive to rapidly changing technology, extensive government regulation and relatively high risks of obsolescence caused by scientific and technological advances. The value of such funds’ shares may fluctuate more than shares of a fund investing in a broader range of industries.

SHORT SALES

A short sale may be effected by selling a security that the fund does not own. In order to deliver the security to the purchaser, the fund borrows the security, typically from a broker-dealer or an institutional investor. The fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the fund would incur a loss; conversely, if the price declines, the fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the fund held only long positions. The fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.

A short sale may also be effected “against the box” if, at all times when the short position is open, the fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the fund would forego the potential realization of the increased value of the shares sold short.

INVESTMENT STYLE RISK

Different investment styles tend to shift in and out of favor depending upon market and economic conditions as well as investor sentiment. A fund may outperform or underperform other funds that employ a different investment style. A fund may also employ a combination of styles that impact its risk characteristics. Examples of different investment styles include growth and value investing. Growth stocks may be more volatile than other stocks because they are more sensitive to investor perceptions of the issuing company’s growth of earnings potential. Also, since growth companies usually invest a high portion of earnings in their business, growth stocks may lack the dividends of value stocks that can cushion stock prices in a falling market. Growth oriented funds will typically underperform when value investing is in favor. The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced.

ISSUER-SPECIFIC CHANGES

The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. Lower-quality debt securities (those of less than investment-grade quality) and certain other types of securities can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, or economic developments and can be difficult to resell.

INVESTMENT STRATEGIES

A fund is permitted to use other securities and investment strategies in pursuit of its investment objective, subject to limits established by the funds’ Board of Trustees. No fund is under any obligation to use any of the techniques or strategies at any given time or under any particular economic condition. Certain instruments and investment strategies may expose the funds to other risks and considerations, which are discussed in the funds’ SAI.

GEOGRAPHIC CONCENTRATION

Because a fund may invest a relatively large percentage of its assets in issuers located in a single country, a small number of countries, or a particular geographic region, a fund’s performance could be closely tied to the market, currency, economic, political, or regulatory conditions and developments in those countries or that region, and could be more volatile than the performance of more geographically-diversified funds.

APPENDIX A-10

Appendix A

More on Strategies and Risks

INFLATION

A fund is subject to the risk that the value of assets or income from the fund’s investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the value of the fund’s assets can decline, as can the value of the fund’s distributions. This risk is more pronounced for funds that invest a substantial portion of their assets in fixed-income securities with longer maturities.

APPENDIX A-11

Appendix B

Bond Ratings

BOND RATINGS

APPENDIX B

BRIEF EXPLANATION OF RATING CATEGORIES

	Bond Rating	Explanation
Standard & Poor’s Corporation	AAA	Highest rating; extremely strong capacity to pay principal and interest.
	AA	High quality; very strong capacity to pay principal and interest.
	A	Strong capacity to pay principal and interest; somewhat more susceptible to the adverse effects of changing circumstances and economic conditions.
	BBB	Adequate capacity to pay principal and interest; normally exhibit adequate protection parameters, but adverse economic conditions or changing circumstances more likely to lead to a weakened capacity to pay principal and interest than for higher rated bonds.
	BB,B, and CCC,CC,C	Predominantly speculative with respect to the issuer’s capacity to meet required interest and principal payments. BB — lowest degree of speculation; C — the highest degree of speculation. Quality and protective characteristics outweighed by large uncertainties or major risk exposure to adverse conditions.
	D	In default.

Plus (+) or Minus (–) — The ratings from “AA” to “BBB” may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.

Unrated — Indicates that no public rating has been requested, that there is insufficient information on which to base a rating, or that S&P does not rate a particular type of obligation as a matter of policy.

Moody’s Investors Service, Inc.	Aaa	Highest quality, smallest degree of investment risk.
	Aa	High quality; together with Aaa bonds, they compose the high-grade bond group.
	A	Upper-medium grade obligations; many favorable investment attributes.
	Baa	Medium-grade obligations; neither highly protected nor poorly secured. Interest and principal appear adequate for the present but certain protective elements may be lacking or may be unreliable over any great length of time.
	Ba	More uncertain, with speculative elements. Protection of interest and principal payments not well safeguarded during good and bad times.
	B	Lack characteristics of desirable investment; potentially low assurance of timely interest and principal payments or maintenance of other contract terms over time.
	Caa	Poor standing, may be in default; elements of danger with respect to principal or interest payments.
	Ca	Speculative in a high degree; could be in default or have other marked shortcomings.
	C	Lowest rated; extremely poor prospects of ever attaining investment standing.

Note: Moody’s appends numerical modifiers “1”, “2” and “3” to each generic rating classification from “Aa” through “Caa.” The modifier “1” indicates that the obligation ranks in the higher end of its generic rating category; the modifier “2” indicates a mid-range ranking; and the modifier “3” indicates a ranking in the lower end of that generic rating category.

Unrated — Where no rating has been assigned or where a rating has been suspended or withdrawn, it may be for reasons unrelated to the quality of the issue.

Should no rating be assigned, the reason may be one of the following:

1.   An application for rating was not received or accepted.

2.	The issue or issuer belongs to a group of securities or companies that are not rated as a matter of policy.
3.	There is a lack of essential data pertaining to the issue or issuer.
4.	The issue was privately placed, in which case the rating is not published in Moody’s publications.

Suspension or withdrawal may occur if new and material circumstances arise, the effects of which preclude satisfactory analysis; if there is no longer available reasonable up-to-date data to permit a judgment to be formed; if a bond is called for redemption; or for other reasons.

APPENDIX B-1

Appendix B

Bond Ratings

Fitch, Inc.	AAA	Highest credit quality. “AAA” ratings denote the lowest expectation of credit risk. They are assigned only in case of exceptionally strong capacity for timely payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.
	AA	Very high credit quality. “AA” ratings denote a very low expectation of credit risk. They indicate very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.
	A	High credit quality. “A” ratings denote a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings.
	BBB	Good credit quality. “BBB” ratings indicate that there is currently a low expectation of credit risk. The capacity for timely payment of financial commitments is considered adequate, but adverse changes in circumstances and in economic conditions are more likely to impair this capacity. This is the lowest investment-grade category.
	BB	Speculative. “BB” ratings indicate that there is a possibility of credit risk developing, particularly as the result of adverse economic change over time; however, business or financial alternatives may be available to allow financial commitments to be met. Securities rated in this category are not investment grade.
	B	Highly speculative. “B” ratings indicate that significant credit risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is contingent upon a sustained, favorable business and economic environment.
	CCC, CC, C	High default risk. “CCC” ratings indicate that default is a real possibility. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business or economic developments. A “CC” rating indicates that default of some kind appears probable. “C” ratings signal imminent default.
	DDD, DD, D	Default. The ratings of obligations in this category are based on their prospects for achieving partial or full recovery in a reorganization or liquidation of the obligor. While expected recovery values are highly speculative and cannot be estimated with any precision, the following serve as general guidelines. “DDD” obligations have the highest potential for recovery, around 90% – 100% of outstanding amounts and accrued interest. “DD” indicates potential recoveries in the range of 50% – 90%, and “D” the lowest recovery potential, i.e., below 50%. Entities rated in this category have defaulted on some or all of their obligations. Entities rated “DDD” have the highest prospect for resumption of performance or continued operation with or without a formal reorganization process. Entities rated “DD” and “D” are generally undergoing a formal reorganization or liquidation process; those rated “DD” are likely to satisfy a higher portion of their outstanding obligations, while entities rated “D” have a poor prospect for repaying all obligations.

Plus (+) or Minus (–) — may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the AAA category, to categories below CCC, or to short-term ratings.

Unrated — Indicates that Fitch does not rate the issuer or issue in question.

Short-Term Credit Ratings — A short-term rating has a time horizon of less than 12 months for most obligations, or up to three years for U.S. public finance securities, and thus places greater emphasis on the liquidity necessary to meet financial commitments in a timely manner.

Withdrawal may occur if the information available is inadequate for rating purposes, or when an obligation matures, is called, or refinanced.

Ratings are placed on Rating Watch to notify investors that there is a reasonable probability of a rating change and the likely direction of such change. These are designated as “Positive,” indicating a potential upgrade, “Negative,” for a potential downgrade, or “Evolving,” if ratings may be raised, lowered or maintained. Rating Watch is typically resolved over a relatively short period.

A Rating Outlook indicates the direction a rating is likely to move over a one to two year period. Outlooks may be positive, stable, or negative. A positive or negative Rating Outlook does not imply a rating change is inevitable. Similarly, companies whose outlooks are “stable” could be downgraded before an outlook moves to positive or negative if circumstances warrant such an action. Occasionally, Fitch may be unable to identify the fundamental trend. In these cases, the Rating Outlook may be described as Evolving.

The above is a brief summary of the ratings used by Moody’s, Standard & Poor’s and Fitch. This information does not purport to be a complete description of the ratings and is based on information from their websites. The ratings represent their opinions as to the quality of various debt obligations. It should be emphasized, however, that ratings are not absolute standards of quality. As described by the rating agencies, ratings are generally given to securities at the time of issuances. While the rating agencies may from time to time revise such ratings, they undertake no obligation to do so.

APPENDIX B-2

NOTICE OF PRIVACY POLICY

At Transamerica Funds, protecting your privacy is very important to us. We want you to understand what information we collect and how we use it. We collect and use “nonpublic personal information” in connection with providing our customers with a broad range of financial products and services as effectively and conveniently as possible. We treat nonpublic personal information in accordance with our Privacy Policy.

What Information We Collect and From Whom We Collect It

We may collect nonpublic personal information about you from the following sources:

•  Information we receive from you on applications or other forms, such as your name, address and account number;

•  Information about your transactions with us, our affiliates, or others, such as your account balance and purchase/redemption history; and

•  Information we receive from non-affiliated third parties, including consumer reporting agencies.

What Information We Disclose and To Whom We Disclose It

We do not disclose any nonpublic personal information about current or former customers to anyone without their express consent, except as permitted by law. We may disclose the nonpublic personal information we collect, as described above, to persons or companies that perform services on our behalf and to other financial institutions with which we have joint marketing agreements. We will require these companies to protect the confidentiality of your nonpublic personal information and to use it only to perform the services for which we have hired them.

Our Security Procedures

We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted by law to assist in providing products or services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information and to safeguard the disposal of certain consumer information.

If you have any questions about our Privacy Policy, please call 1-888-233-4339 on any business day between 8 a.m. and 7 p.m. Eastern Time.

Note:  This Privacy Policy applies only to customers that have a direct relationship with us or our affiliates. If you own shares of a Transamerica Fund in the name of a third party such as a bank or broker-dealer, its privacy policy may apply to you instead of ours.

THIS PAGE IS NOT PART OF THE PROSPECTUS

Table of Contents

Section A — Fund Descriptions		2
	Transamerica American Century Large Company Value	2
	Transamerica Bjurman, Barry Micro Emerging Growth	6
	Transamerica BlackRock Large Cap Value	9
	Transamerica JPMorgan Mid Cap Value	13
	Transamerica Jennison Growth	17
	Transamerica Legg Mason Partners Investors Value	21
	Transamerica Marsico Growth	24
	Transamerica Third Avenue Value	28
	Transamerica Oppenheimer Small- & Mid-Cap Value	32
	Transamerica BNY Mellon Market Neutral Strategy	36
	Transamerica Equity	41
	Transamerica Growth Opportunities	45
	Transamerica Small/Mid Cap Value	49
	Transamerica UBS Large Cap Value	53
	Transamerica Van Kampen Mid-Cap Growth	57
	Transamerica Van Kampen Small Company Growth	62
	Transamerica BlackRock Global Allocation	66
	Transamerica Clarion Global Real Estate Securities	73
	Transamerica Evergreen Health Care	78
	Transamerica BlackRock Natural Resources	82
	Transamerica Federated Market Opportunity	87
	Transamerica Convertible Securities	93
	Transamerica Science & Technology	97
	Transamerica AllianceBernstein International Value	101
	Transamerica Schroders International Small Cap	106
	Transamerica Evergreen International Small Cap	110
	Transamerica MFS International Equity	115
	Transamerica Marsico International Growth	119
	Transamerica Neuberger Berman International	123
	Transamerica Thornburg International Value	127
	Transamerica Oppenheimer Developing Markets	131
	Transamerica WMC Emerging Markets	136
	Transamerica Templeton Global	141
	Transamerica PIMCO Real Return TIPS	146
	Transamerica JPMorgan International Bond	151
	Transamerica PIMCO Total Return	155
	Transamerica UBS Dynamic Alpha	160
	Transamerica Flexible Income	166
	Transamerica High Yield Bond	172
	Transamerica Short-Term Bond	175
	Transamerica Loomis Sayles Bond	179
	Transamerica Van Kampen Emerging Markets Debt	185
	Transamerica Balanced	189
	Transamerica Value Balanced	195
	Transamerica Money Market	201
Financial Highlights		204
Section B — Shareholder Information		218
	Investment Adviser	218
	Buying and Selling Shares	218
	Pricing of Shares	218
	Features and Policies	219
	Distribution of Shares	220
	Other Distribution or Service Arrangements	220
	Distributions and Taxes	220
-	APPENDIX A — MORE ON STRATEGIES AND RISKS	A-1
-	APPENDIX B — BOND RATINGS	B-1

Each Transamerica Fund described in this prospectus invests in a range of securities, such as stocks and/or bonds. Please read this prospectus carefully before you invest or send money. It has been written to provide information and assist you in making an informed decision. If you would like additional information, please request a copy of the Statement of Additional Information (“SAI”).

In addition, we suggest you contact your financial professional or a Transamerica Funds customer service representative, who will assist you.

PLEASE NOTE:

This prospectus includes Class I shares only. Class I shares of the Transamerica Funds listed in this prospectus are currently offered for investment primarily to certain funds of funds in the Transamerica Funds family (also referred to as “strategic asset allocation funds”). Class I shares may also be made available to other investors, including institutional investors such as foreign insurers, domestic insurance companies, their separate accounts, and eligible retirement plans whose recordkeepers or financial service firm intermediaries have entered into agreements with Transamerica Funds or its agents.

TO HELP YOU UNDERSTAND

In this prospectus, you’ll see symbols like the ones below. These are “icons,” graphic road signs that let you know at a glance the subject of the nearby paragraphs. The icons serve as tools for your convenience as you read this prospectus.

OBJECTIVE
What is the fund’s investment objective? Learn about your fund’s goal or objective.

PRINCIPAL STRATEGIES AND POLICIES
How does the fund go about trying to meet its goal? Read about the key types of investments each fund contains and what style of investment philosophy it employs.

PRINCIPAL RISKS
What are the specific key risks for an investor in the fund? Find out what key types of risks are associated with each fund.

PAST PERFORMANCE
What is the investment performance of the fund? See how well each fund has performed in the past year, five years, ten years or since its inception.

FEES AND EXPENSES
How much does it cost to invest in the fund? Learn about each fund’s fees and expenses.

ADDITIONAL INFORMATION
Who manages the fund and how much are they paid? See information about each fund’s advisers, as well as the fees paid to them.

An investment in a Transamerica Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

1

Section A — Fund Descriptions

Transamerica American Century Large Company Value

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica American Century Large Company Value is to seek long-term capital growth; income is a secondary goal.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, American Century Investment Management, Inc. (“American Century”), seeks to achieve this objective by investing principally in:

-   U.S. equity securities

The fund invests primarily in U.S. large-capitalization companies. The sub-adviser considers large-capitalization companies to be companies that comprise the Russell 1000 ^® Index. Under normal market conditions, the fund will have at least 80% of its net assets invested in equity securities of companies comprising the Russell 1000 ^® Index.

The fund’s sub-adviser looks for stocks of companies that it believes are undervalued at the time of purchase. The managers use a value investment strategy that looks for companies that are temporarily out of favor in the market. The managers attempt to purchase the stocks of these undervalued companies and hold each stock until it has returned to favor in the market and the price has increased to, or is higher than, a level the managers believe more accurately reflects the fair value of the company. The managers may sell stocks from the fund’s portfolio if they believe a stock no longer meets their valuation criteria.

Companies may be undervalued due to market declines, poor economic conditions, actual or anticipated bad news regarding the issuer or its industry, or because they have been overlooked by the market. To identify these companies, the fund managers look for companies with earnings, cash flows and/or assets that may not be reflected accurately in the companies’ stock price. The managers also may consider whether the companies’ securities have a favorable income paying history and whether income payments are expected to continue or increase.

The fund managers do not attempt to time the market. Instead, under normal market conditions, they intend to keep at least 80% of the fund’s net assets invested in large capitalization U.S. equity securities of companies comprising the Russell 1000 ^® Index regardless of the movement of stock prices generally. The sub-adviser defines equity securities to include common stock, preferred stock, and equity equivalent investments, such as convertible securities, stock futures contracts or stock index futures contracts.

When the managers believe it is prudent, the fund may invest a portion of its assets in foreign securities, debt securities of companies, debt obligations of governments and their agencies and other similar securities. Futures contracts, a type of derivative security, may help the fund’s cash assets remain liquid while performing more like stocks.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to

2

Transamerica American Century Large Company Value

which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Standard & Poor’s 500 Stock Index (“S&P 500 Index”), which is comprised of 500 widely traded common stocks that measures the general performance of the market, and the Russell 1000 ^® Value Index (secondary), which measures the performance of those

3

Transamerica American Century Large Company Value

Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Each index is a widely recognized, unmanaged index of market performance. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		12/31/2006		7.31	%
Worst Quarter:		12/31/2008		(21.10)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(37.15)%		(8.66)%
Return after taxes on distributions3	(37.91)%		(9.75)%
Return after taxes on distributions and sale of fund shares3	(24.15)%		(7.34)%
S&P 500 Index (reflects no deductions for fees, expenses or taxes)	(37.00)%		(7.61)%
Russell 1000 ® Value Index (secondary) (reflects no deduction for fees, expenses, or taxes)	(36.85)%		(7.45)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 15, 2005.
3	The after tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.81%
Distribution and service (12b-1) fees	N/A
Other expenses	0.04%
Total annual fund operating expenses	0.85%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	87	$	271	$	471	$	1,049

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.835%
Over $250 million up to $400 million	0.80%
Over $400 million up to $750 million	0.775%
Over $750 million	0.70%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.81% of the fund’s average daily net assets.

Sub-Adviser:

American Century Investment Management Inc. (“American Century”)

American Century Tower

4500 Main Street

Kansas City, Missouri 64111

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.40%
Over $250 million up to $500 million	0.375%
Over $500 million up to $750 million	0.35%
Over $750 million	0.30%

4

Transamerica American Century Large Company Value

The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with the same named fund managed by the sub-adviser for Transamerica Series Trust.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

American Century uses a team of fund managers and analysts to manage this fund. The team meets regularly to review portfolio holdings and discuss purchase and sale activity. Team members buy and sell securities for the fund as they see fit, guided by the fund’s investment objective and strategy.

The fund managers on the investment team are:

Charles A. Ritter, CFA, Vice President and Senior Portfolio Manager, is a member of the team that manages the fund. He joined American Century in December 1998. Before joining American Century, he spent 15 years with Federated Investors, most recently serving as a Vice President and Portfolio Manager for the company. Mr. Ritter has a bachelor’s degree in mathematics and a master’s degree in economics from Carnegie Mellon University. He also has an M.B.A. from the University of Chicago.

Brendan Healy, CFA, Vice President and Portfolio Manager, is a member of the team that manages the fund. He joined American Century in April 2000. Mr. Healy has a bachelor’s degree in mechanical engineering from the University of Arizona. He also has an M.B.A. from the University of Texas.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

5

Transamerica Bjurman, Barry Micro Emerging Growth

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Bjurman, Barry Micro Emerging Growth is to seek capital appreciation.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Bjurman, Barry & Associates (“Bjurman, Barry”), will invest under normal market conditions, at least 80% of the fund’s net assets in the common stocks of emerging growth U.S. companies whose total market capitalization at the time of investment is generally between $30 million and $1 billion, and which, in the opinion of Bjurman, Barry, have superior earnings growth characteristics.

Bjurman, Barry uses five quantitative models that emphasize both growth and value attributes, including earnings growth, earnings strength, earnings revision, price/earnings to growth ratio, and cash flow to price. This procedure identifies approximately 230 attractively priced stocks with the best growth prospects, which are further screened based on a top-down economic analysis designed to identify what the manager believes are the most promising industries over the next 12 to 18 months. Company fundamental analysis is then employed to produce a portfolio of stocks in the most promising sectors of the economy.

-What is A “Top-Down” Approach?

When using a “top-down” approach, the fund manager looks first at broad market factors, and on the basis of those market factors, chooses certain sectors, or industries within the overall market. The manager then looks at individual companies within those sectors or industries.

To ensure a diversified portfolio, assets in any one issue or industry are generally limited to 5% and 15%, respectively, of total assets. The Investment Policy Committee of the sub-adviser reviews investment alternatives and implements portfolio changes as attractive investment opportunities become available. The closing prices of portfolio issues are reviewed daily. Any position that has declined 15% from its cost or from its recent high is re-examined as a potential sale candidate. Additionally, securities of companies that the Committee determines are overvalued or have lost earnings momentum, or are in industries no longer expected to perform well, are continually evaluated for sale.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Small- or Micro-Sized Companies

Investing in small companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

Investing in micro-sized companies involves even more risks than investing in other small companies. Micro-sized companies sometimes are not well-known to investors and may not have significant institutional and long-term investors. They tend to have small revenues, product lines, markets and financial resources, and their securities may trade less frequently and in more limited volume (and may thus be less liquid) than other larger companies. They may be engaged in activities for which the market is developing or may never develop. If adverse developments occur, the value of their securities may lose substantial value. They often require a long-term investment view and are not appropriate for all investors.

6

Transamerica Bjurman, Barry Micro Emerging Growth

-Risk of Investing Aggressively

Certain risks are associated with investing aggressively; the value of developing company stocks may be very volatile, and can drop significantly in a short period of time.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own business, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Industry Focus

Stocks of issuers in a particular industry may be affected by changes in economic conditions, government regulations, availability of basic resources or supplies, or other events that affect the industry more than others. To the extent that the fund is emphasizing investments in a particular industry, its share values may fluctuate in response to events affecting that industry.

-Emerging Growth Companies

Companies that Bjurman, Barry believes are emerging growth companies are often companies with accelerating or higher than average rates of earnings growth, or companies with new or limited products, services, markets, distribution channels or financial resources, or the management of such companies may be dependent upon one or a few key people, or the companies have other special circumstances. The stocks of emerging growth companies can be subject to more abrupt or erratic market movements than the stock market in general.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 2000^® Growth Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2007		4.68%
Worst Quarter:		12/31/2008		(26.21)%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(47.26)%		(19.20)%
Return after taxes on distributions3	(47.26)%		(19.20)%
Return after taxes on distributions and sale of fund shares3	(30.72)%		(15.92)%
Russell 2000 ® Growth Index (reflects no deduction for fees, expenses, or taxes)	(38.54)%		(11.63)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations August 1, 2006.
3	The after tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	1.05%
Distribution and service (12b-1) fees	N/A
Other expenses	0.07%
Total annual fund operating expenses	1.12%
Expense reductionb	0.00%
Net operating expenses	1.12%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.25% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses

7

Transamerica Bjurman, Barry Micro Emerging Growth

reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.25% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	114	$	356	$	617	$	1,363

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	1.05%
Over $250 million up to $500 million	1.00%
Over $500 million	0.975%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 1.05% of the fund’s average daily net assets.

Sub-Adviser:

Bjurman, Barry & Associates (“Bjurman, Barry”)

2049 Century Park East

Suite 2505

Los Angeles, CA 90067

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.55% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

O. Thomas Barry, III, CFA, CIC, serves as portfolio manager of this portfolio. Mr. Barry is Chief Investment Officer and Senior Executive Vice President of Bjurman, Barry & Associates. He serves as a Senior Portfolio Manager, member of the Board of Directors, and a Principal Member of the Investment Policy Committee. Prior to joining the firm in 1978, he was the Senior Investment Officer and Portfolio Manager at Security National Pacific Bank. Mr. Barry earned a B.A. majoring in Economics at the University of Iowa and his M.B.A. in Corporate Finance and Accounting at California State University, Long Beach.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

8

Transamerica BlackRock Large Cap Value

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica BlackRock Large Cap Value is to seek long-term capital growth.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, BlackRock Investment Management, LLC (“BlackRock”), seeks to achieve this objective by investing primarily in a diversified portfolio of equity securities of large cap companies located in the United States. Under normal circumstances, the fund invests at least 80% of its net assets in equity securities of large cap companies. The fund considers a large cap company to be one which, at the time of purchase, has a market capitalization equal to or greater than a company in the top 80% of the companies that comprise the Russell 1000^® Index. As of December 31, 2008, the lowest market capitalization in this group was approximately $654 million. The market capitalizations of companies in the index change with market conditions and the composition of the index.

BlackRock seeks to identify well-managed companies with good earnings growth rates selling at a reasonable valuation using a quantitative screening model combined with fundamental research, strict portfolio construction parameters, and risk management controls to seek repeatability of investment success.

In addition, the fund may invest in foreign securities that are represented by American Depositary Receipts, or “ADRs.”

The fund may also lend its portfolio securities and invest uninvested cash balances in affiliated money market funds.

The fund may invest in investment grade convertible securities, preferred stock, illiquid securities, and U.S. government debt securities (i.e., securities that are direct obligations of the U.S. government). There are no restrictions on the maturity of the debt securities in which the fund may invest.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

-Investment Process

BlackRock follows a proprietary multifactor quantitative model in selecting securities for the fund’s portfolio.

The factors employed by the model include stock valuation, quality of earnings and potential future earnings growth.

BlackRock looks for strong relative earnings growth, earnings quality and good relative valuation. A company’s stock price relative to its earnings and book value is also examined; if BlackRock believes that a company is overvalued, it will not be considered as an investment for the fund’s portfolio. After the initial screening is done, BlackRock relies on fundamental analysis, using both internal and external research, to optimize its quantitative model to choose companies that BlackRock believes have strong, sustainable earnings growth with current momentum at attractive price valuations.

Because the fund generally will not hold all the stocks in its index, and because its investments may be allocated in amounts that vary from the proportional weightings of the various stocks in that index, the fund is not an “index” portfolio. In seeking to outperform its benchmark, however, BlackRock reviews potential investments using certain criteria that are based on the securities in the index. These criteria currently include the following:

-   Relative price earnings and price to book ratios

-   Stability and quality of earnings

-   Earnings momentum and growth

-   Weighted median market capitalization of the fund’s portfolio

-   Allocation among the economic sectors of the fund’s portfolio as compared to the index

-   Weighted individual stocks within the applicable index

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

9

Transamerica BlackRock Large Cap Value

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Securities Lending

The fund may lend securities to other financial institutions that provide cash or other securities as collateral. This involves the risk that the borrower may fail to return the securities in a timely manner or at all. As a result, the fund may lose money and there may be a delay in recovering the loaned securities. The fund could also lose money if it does not recover the securities and/or the value of the collateral falls, including the value of investments made with cash collateral.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

10

Transamerica BlackRock Large Cap Value

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 1000 ^® Value Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		12/31/2006		7.11%
Worst Quarter:		12/31/2008		(20.04)%

Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(36.20)%		(7.02)%
Return after taxes on distributions3	(36.37)%		(7.57)%
Return after taxes on distributions and sale of fund shares3	(23.30)%		(5.69)%
Russell 1000 ® Value Index (reflects no deduction for fees, expenses, or taxes)	(36.85)%		(7.45)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.79%
Distribution and service (12b-1) fees	N/A
Other expenses	0.04%
Total annual fund operating expenses	0.83%
Expense reductionb	0.00%
Net operating expenses	0.83%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.00% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.00% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	85	$	265	$	460	$	1,025

11

Transamerica BlackRock Large Cap Value

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.80%
Over $250 million up to $750 million	0.775%
Over $750 million	0.75%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.79% of the fund’s average daily net assets.

Sub-Adviser:

BlackRock Investment Management, LLC (“BlackRock”)

800 Scudders Mill Road

Plainsboro, New Jersey 08536

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.35%
Over $250 million up to $750 million	0.325%
Over $750 million	0.30%

The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with the same named fund managed by the sub-adviser for Transamerica Series Trust.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

The fund is managed by a team led by Robert C. Doll, Jr. and Daniel Hanson. Mr. Doll is primarily responsible for the day-to-day management of the fund.

Robert C. Doll, Jr., CFA, has been Vice Chairman and Director of BlackRock, Inc. and Global Chief Investment Officer for Equities, Chairman of the BlackRock Retail Operating Committee and member of the BlackRock Executive Committee since 2006. Mr. Doll was President of Merrill Lynch Investment Managers, L.P. (“MLIM”) and its affiliate, Fund Asset Management, L.P. (“FAM”), from 2001 to 2006. He was President and a member of the Board of the funds advised by MLIM and its affiliates from 2005 to 2006.

Daniel Hanson, CFA, is a Director of BlackRock, Inc., which he joined in 2006 following the merger with MLIM. He has been a member of the Large Cap Series team responsible for fundamental analysis since he joined MLIM in 2003 and has been a portfolio manager of the fund since 2008. Mr. Hanson directs the fundamental research group supporting this team, and is an active participant in the portfolio construction process.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

12

Transamerica JPMorgan Mid Cap Value

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica JPMorgan Mid Cap Value is to seek growth from capital appreciation.

Note: The fund is currently closed to new investors.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, J.P. Morgan Investment Management Inc. (“JPMorgan”), seeks to achieve this objective by investing primarily (at least 80% of net assets under normal circumstances) in a broad portfolio of common stocks of companies with market capitalizations of $1 billion to $20 billion at the time of purchase that JPMorgan believes to be undervalued.

Under normal market conditions, the fund will only purchase securities that are traded on registered exchanges or the over-the-counter market in the United States. The fund may invest in other equity securities, which include preferred stocks, convertible securities and foreign securities, which may take the form of depositary receipts.

JPMorgan may use derivatives to hedge various market risks or to increase the fund’s income. The fund may also invest in master limited partnerships, although their use will not be a principal investment strategy. The fund may invest up to 15% of its net assets in real estate investment trusts (“REITs”).

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

13

Transamerica JPMorgan Mid Cap Value

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-REITS

Real estate markets have been particularly affected by the financial crisis. Equity REITs can be affected by any changes in the value of the properties owned. A REIT’s performance depends on the types and locations of the properties it owns and on how well it manages those properties or loan financings. A decline in rental income could occur because of extended vacancies, increased competition from other properties, tenants’ failure to pay rent or poor management. A REIT’s performance also depends on the company’s ability to finance property purchases and renovations and manage its cash flows. Because REITs are typically invested in a limited number of projects or in a particular market segment, they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. Loss of status as a qualified REIT or changes in the treatment of REITs under the federal tax law could adversely affect the value of a particular REIT or the market for REITs as a whole.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Medium-Sized Companies

Investing in medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell Midcap^® Value Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell mid-cap companies with lower price-to-book ratios and lower forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

14

Transamerica JPMorgan Mid Cap Value

Class I Shares	Quarter Ended		Return
Best Quarter:		3/31/2006		6.40%
Worst Quarter:		12/31/2008		(21.96)%

Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(33.03)%		(5.79)%
Return after taxes on distribution3	(33.34)%		(6.58)%
Return after taxes on distributions and sale of fund shares3	(21.06)%		(4.79)%
Russell Midcap® Value Index (reflects no deduction for fees, expenses, or taxes)	(38.44)%		(8.81)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I shares commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Note: The fund is offered solely to the strategic asset allocation funds and currently is closed to new investors. However, the asset allocation funds may rebalance their investments in the fund.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.82%
Distribution and service (12b-1) fees	N/A
Other expenses	0.05%
Total annual fund operating expenses	0.87%
Expense reductionb	0.00%
Net operating expenses	0.87%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.05% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.05% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	89	$	278	$	482	$	1,073

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investor Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets:
First $100 million	0.85%
Over $100 million	0.80%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.82% of the fund’s average daily net assets.

Sub-Adviser:

J.P. Morgan Investment Management Inc. (“JPMorgan”)

245 Park Avenue

New York, New York 10167

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.40% the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Jonathan K.L. Simon, Managing Director of JPMorgan, heads the U.S. Equity Value Group and has been an employee of JPMorgan and its predecessors since 1980. Mr. Simon joined the firm as an analyst in the London office, and transferred to New York in 1983. He became portfolio manager in 1987 and served as president of Robert Fleming’s U.S. asset management operations from 1990 until 2000. Mr. Simon holds an M.A. in mathematics from Oxford University.

15

Transamerica JPMorgan Mid Cap Value

Lawrence Playford, CFA, Vice President of JPMorgan, is a research analyst and portfolio manager in the U.S. Equity Value Group. Mr. Playford’s analytical coverage includes the energy, materials, industrials and utilities sectors. An employee since 1993, he joined the investment team as an analyst in October 2003 and was named a portfolio manager in 2004. Prior to that, he served as a client portfolio manager working directly with the U.S. Equity Group’s investment teams to communicate investment strategy and results to clients since 2001. Mr. Playford also was a client advisor at JPMorgan Private Bank, providing investment and financial planning advice to high net worth clients. He joined the firm as a financial analyst, performing strategic planning and analysis for the firm’s finance department. He holds a B.B.A. in accounting from the University of Notre Dame and an M.B.A. in finance from Fordham University. He is a Certified Public Accountant.

Gloria Fu, CFA, Vice President of JPMorgan, is a research analyst and portfolio manager in the U.S. Equity Value Group. Her analytical coverage predominantly focuses on consumer companies. An employee since 2002, Ms. Fu previously worked at JPMorgan Securities as a sell-side analyst focusing on the gaming and lodging industries. Prior to joining the firm, she was employed by Robertson Stephens as a sell-side analyst covering the gaming and lodging industries. From 1995 to 2000, she worked in direct real estate investment and valuation for both Arthur Andersen and Starwood Capital Group, a real estate private equity fund. Ms. Fu holds a Bachelors of Science and Masters degree in hotel administration from Cornell University.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

16

Transamerica Jennison Growth

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Jennison Growth is to seek long-term growth of capital.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Jennison Associates LLC (“Jennison”), seeks to achieve the fund’s objective by investing substantially all, but at least 65%, of the fund’s total assets in equity securities, principally common stocks, preferred stocks, warrants, rights and depositary receipts, of U.S. companies with market capitalizations of at least $1 billion that Jennison considers to have above average prospects for growth. These companies are generally medium-to large-capitalization companies.

The sub-adviser uses a “bottom up” approach, researching and evaluating individual companies, to manage the fund’s investments. Jennison looks primarily at individual company fundamentals rather than at macro-economic factors to identify individual companies with earnings growth potential that may not be recognized by the market at large.

What is a “Bottom Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

In selecting stocks for the fund, the sub-adviser looks for companies with the following financial characteristics:

-   superior absolute and relative earnings growth

-   above average revenue and earnings per share growth

-   sustainable or improving profitability

-   strong balance sheets

In addition, Jennison looks for companies that have actually achieved or exceeded expected earnings results and are attractively valued relative to their growth prospects. Earnings predictability and confidence in earnings forecasts are important parts of the selection process. Securities in which the fund invests have historically been more volatile than the Standard & Poor’s 500 Composite Stock Price Index (“S&P 500 Index”). In addition, companies that have an earnings growth ratio higher than that of the average S&P 500 Index company tend to reinvest their earnings rather than distribute them, so the fund is not likely to receive significant dividend income on its investments. The sub-adviser focuses on stocks of companies that have distinct attributes such as:

-   strong market position with a defensible franchise

-   unique marketing competence

-   strong research and development leading to superior new product flow

-   capable and disciplined management

Such companies generally trade at high prices relative to their current earnings.

The fund may invest up to 20% of its assets in the securities of foreign issuers.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

17

Transamerica Jennison Growth

-Medium-Sized Companies

Investing in medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 1000 ^® Growth Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2007		6.13	%
Worst Quarter:		12/31/2008		(20.88)	%

18

Transamerica Jennison Growth

Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(37.11)%		(9.64)%
Return after taxes on distributions3	(37.16)%		(9.92)%
Return after taxes on distributions and sale of fund shares3	(24.12)%		(7.98)%
Russell 1000 ® Growth Index (reflects no deduction for fees, expenses, or taxes)	(38.44)%		(8.38)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted
from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.80%
Distribution and service (12b-1) fees	N/A
Other expenses	0.05%
Total annual fund operating expenses	0.85%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	87	$	271	$	471	$	1,049

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.80%
Over $250 million up to $500 million	0.775%
Over $500 million up to $1 billion	0.70%
Over $1 billion up to $1.5 billion	0.675%
Over $1.5 billion	0.65%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.80% of the fund’s average daily net assets.

Sub-Adviser:

Jennison Associates LLC (“Jennison”)

466 Lexington Avenue

New York, New York 10017

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.40%
Over $250 million up to $500 million	0.35%
Over $500 million up to $1 billion	0.30%
Over $1 billion up to $1.5 billion	0.25%
Over $1.5 billion	0.20%

The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with the same named fund managed by the sub-adviser for Transamerica Series Trust.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

19

Transamerica Jennison Growth

Portfolio Managers:

Michael A. Del Balso, Spiros Segalas and Blair A. Boyer are the portfolio managers of the fund. Mr. Del Balso generally has final authority over all aspects of the fund’s investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio construction, risk assessment, and management of cash flows.

Michael A. Del Balso joined Jennison in May 1972 and is a Managing Director of Jennison. He is also Jennison’s Director of Research for Growth Equity. Mr. Del Balso graduated from Yale University in 1966 and received his M.B.A. from Columbia University in 1968. He is a member of The New York Society of Security Analysts, Inc.

Spiros “Sig” Segalas was a founding member of Jennison in 1969 and is currently a Director, President and Chief Investment Officer of Jennison. He received his B.A. from Princeton University in 1955 and is a member of The New York Society of Security Analysts, Inc.

Blair A. Boyer is a Managing Director of Jennison, which he joined in March 1993. In January 2003, Mr. Boyer joined the growth equity team, after co-managing international equity portfolios since joining Jennison. During his tenure as an international equity portfolio manager, he managed the Jennison International Growth Fund from its inception in March 2000. Mr. Boyer managed international equity portfolios at Arnhold & S. Bleichroeder, Inc. from 1989 to 1993. Prior to that, he was a research analyst and then a senior portfolio manager in the Verus Capital division at Bleichroeder. Mr. Boyer graduated from Bucknell University in 1983 with a B.A. in economics. He received a M.B.A. in finance from New York University in 1989.

The portfolio managers for the fund are supported by other Jennison portfolio managers, research analysts and investment professionals. Jennison typically follows a team approach in providing such support to the portfolio managers. The teams are generally organized along product strategies (e.g., large cap growth, large cap value) and meet regularly to review the portfolio holdings and discuss security purchase and sales activity of all accounts in the particular product strategy. Team members provide research support, make securities recommendations and support the portfolio managers in all activities. Members of the team may change from time to time.

The sub-adviser has provided investment advisory services since 1969.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

20

Transamerica Legg Mason Partners Investors Value

Summary of Risks and Returns

Please Note: The Board of Trustees of Transamerica Funds has approved a proposal to liquidate and dissolve Transamerica Legg Mason Partners Investors Value effective on or about March 31, 2009. Prior to the fund’s liquidation and dissolution, shareholders are entitled to exchange their fund shares for shares of the same class of another series of Transamerica Funds. If they do not wish to exchange their fund shares, shareholders also may redeem their shares in the manner set forth in this prospectus.

In connection with winding up the fund’s affairs and liquidating all of its assets, the fund may depart from its stated investment objective and policies and may hold a significant portion of total assets in cash, U.S. Government securities and other short-term debt instruments.

Objective

­ ­

The objective of Transamerica Legg Mason Partners Investors Value is to seek long-term growth of capital. Current income is a secondary objective.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, ClearBridge Advisors, LLC (“ClearBridge”), seeks to achieve this objective by investing fund assets principally in:

-   common stocks of established U.S. companies.

ClearBridge emphasizes individual security selection while diversifying the fund’s investments across industries, which may help to reduce risk. The fund manager focuses on established large capitalization companies (over $5 billion in market capitalization), seeking to identify those companies with favorable valuations and attractive growth potential. The fund manager employs fundamental analysis to analyze each company in detail, evaluating its management, strategy and competitive market position.

In selecting individual companies for investment, ClearBridge looks for:

-   company specific items such as competitive market position, competitive products and services, experienced management team and stable financial condition.

-   share prices that appear to be temporarily oversold or do not reflect positive company developments.

-   share prices that appear to undervalue the company’s assets.

-   special situations including corporate events, changes in management, regulatory changes or turnaround situations.

The fund may also invest in other equity securities. To a lesser degree, the fund invests in income producing securities such as debt securities.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity

21

Transamerica Legg Mason Partners Investors Value

or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Standard & Poor’s 500 Stock Index (“S&P 500 Index”), which is comprised of 500 widely traded common stocks that measures the general performance of the market, and the Russell 1000 ^® Value Index (secondary), which measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Each index is a widely recognized, unmanaged index of market performance. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		12/31/2006		7.44	%
Worst Quarter:		12/31/2008		(21.40)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(36.09)%		(6.96)%
Return after taxes on distributions3	(36.96)%		(10.38)%
Return after taxes on distributions and sale of fund shares3	(23.46)%		(5.68)%
S&P 500 Index (reflects no deductions for fees, expenses or taxes)	(37.00)%		(7.61)%
Russell 1000 ® Value Index (secondary) (reflects no deduction for fees, expenses, or taxes)	(36.85)%		(7.45)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.80%
Distribution and service (12b-1) fees	N/A
Other expenses	0.07%
Total annual fund operating expenses	0.87%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

22

Transamerica Legg Mason Partners Investors Value

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	89	$	278	$	482	$	1,073

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $500 million	0.80%
Over $500 million	0.70%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.80% of the fund’s average daily net assets.

Sub-Adviser:

ClearBridge Advisors, LLC (“ClearBridge”)

620 Eighth Avenue

New York, New York 10018

ClearBridge is a wholly owned subsidiary of Legg Mason, Inc.

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.35% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Dmitry Khaykin and Robert Feitler serve as co-portfolio managers and are responsible for the day-to-day management of this fund.

Mr. Khaykin, Managing Director and Portfolio Manager, joined ClearBridge (or its predecessor firms) in 2003; prior to 2003, he was a research analyst (telecommunications) at Gabelli & Company, Inc. and an associate in the risk management division of Morgan Stanley & Company, Inc. Mr. Khaykin has a B.A. from New York University and an M.B.A. from the Wharton School at the University of Pennsylvania.

Mr. Feitler, a Managing Director, joined ClearBridge (or its predecessor firms) in 1995. Mr. Feitler has a B.A. in economics from Haverford College and an M.B.A. in finance from the University of Wisconsin.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

23

Transamerica Marsico Growth

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Marsico Growth is to seek long-term growth of capital.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Columbia Management Advisors, LLC (“Columbia”), has entered into an agreement with Marsico Capital Management, LLC (“Marsico”), under which Marsico provides portfolio management to the fund. Marsico seeks to achieve this objective by investing principally in:

-   common stocks

This fund invests primarily in the common stocks of large companies that are selected for their long-term growth potential. The fund will normally hold a core position of between 35 and 50 common stocks. The fund may hold a limited number of additional common securities at times such as when the portfolio manager is accumulating new positions, phasing out and replacing existing positions, or responding to exceptional market conditions.

In selecting investments for the fund, Marsico uses an approach that combines “top-down” macro-economic analysis with “bottom-up” stock selection.

The “top-down” approach may take into consideration macro-economic factors such as, without limitation, interest rates, inflation, demographics, the regulatory environment and the global competitive landscape. In addition, Marsico may also examine other factors that may include, without limitation, the most attractive global investment opportunities, industry consolidation, and the sustainability of financial trends observed. As a result of the “top-down” analysis, Marsico seeks to identify sectors, industries and companies that may benefit from the overall trends Marsico has observed.

What is a “Top-Down” Approach?

When using a “top-down” approach, the fund manager looks first at broad market factors, and on the basis of those market factors, chooses certain sectors, or industries within the overall market. The manager then looks at individual companies within those sectors or industries.

Marsico then looks for individual companies or securities with earnings growth potential that may not be recognized by the market at large. In determining whether a particular company or security may be a suitable investment, Marsico may focus on any of a number of different attributes that may include, without limitation, the company’s specific market expertise or dominance; its franchise durability and pricing power; solid fundamentals (e.g., a strong balance sheet, improving returns on equity, the ability to generate free cash flow, apparent use of conservative accounting standards, and transparent financial disclosure); strong and ethical management; commitment to shareholder interests; reasonable valuations in the context of projected growth rates; and other indications that a company or security may be an attractive investment prospect. This process is called “bottom-up” stock selection.

What is “Bottom-Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

As part of this fundamental “bottom-up” research, Marsico may visit with various levels of a company’s management, as well as with its customers and (as relevant) suppliers, distributors and competitors. Marsico also may prepare detailed earnings and cash flow models of companies. These models may assist Marsico in projecting potential earnings growth, current income and other important company financial characteristics under different scenarios. Each model is typically customized to follow a particular company and is generally intended to replicate and describe a company’s past, present and potential future performance. The models may include quantitative information and detailed narratives that reflect updated interpretations of corporate data and company and industry developments.

Marsico may reduce or sell a fund’s investments in portfolio companies if, in the opinion of Marsico, a company’s fundamentals change substantially, its stock price appreciates excessively in relation to fundamental earnings growth prospects, the company appears not to realize its growth potential or current income potential, more attractive investment opportunities appear elsewhere, or for other reasons.

The core investments of the fund generally may include established companies and securities (large capitalization securities typically having a market capitalization of $5 billion or more) that offer long-term growth potential. However, the fund also may typically include securities of less mature companies, companies or securities with more aggressive growth characteristics, and companies undergoing significant changes such as the introduction of a new product line, the appointment of a new management team, or an acquisition.

While the fund invests principally in publicly traded U.S. securities, Marsico may invest up to 20% in the aggregate in foreign equity securities listed on foreign markets, including companies in emerging markets, (including securities of issuers quoted in foreign currencies), or, to a lesser extent, in other securities and investment strategies in pursuit of its investment objective.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

24

Transamerica Marsico Growth

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign securities, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

25

Transamerica Marsico Growth

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Standard & Poor’s 500 Stock Index (“S&P 500 Index”), which is comprised of 500 widely traded common stocks that measures the general performance of the market, and the Russell 1000 ^® Growth Index (secondary), which measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. Each index is a widely recognized, unmanaged index of market performance. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2007		8.66%
Worst Quarter:		12/31/2008		(19.27)%

Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(37.62)%		(6.65)%
Return after taxes on distributions3	(37.76)%		(6.73)%
Return after taxes on distributions and sale of fund shares3	(24.45)%		(5.61)%
S&P 500 Index (reflects no deductions for fees, expenses or taxes)	(37.00)%		(7.61)%
Russell 1000 ® Growth Index (secondary) (reflects no deduction for fees, expenses, or taxes)	(38.44)%		(8.38)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.80%
Distribution and service (12b-1) fees	N/A
Other expenses	0.05%
Total annual fund operating expenses	0.85%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	87	$	271	$	471	$	1,049

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

26

Transamerica Marsico Growth

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $500 million	0.80%
Over $500 million	0.70%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.80% of the fund’s average daily net assets.

Sub-Adviser:

Columbia Management Advisors, LLC (“Columbia”)

100 Federal Street

Boston, MA 02110

Columbia has delegated certain of its duties as sub-adviser to Marsico Capital Management, LLC, 1200 17^th Street, Suite 1600, Denver, CO 80202.

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.40%
Next $250 million	0.375%
Next $500 million	0.35%
Over $1 billion	0.30%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

Thomas F. Marsico is primarily responsible for the management of the fund. Mr. Marisco has over 20 years of experience as a securities analyst and a portfolio manager.

Marsico was organized in September 1997 as a registered investment adviser and is an independently-owned investment management firm. Marsico provides investment services to mutual funds and private accounts and, as of December 31, 2008, had approximately $56 billion under management. Thomas F. Marsico is the founder, Chief Executive Officer, and Chief Investment Officer of Marsico.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

27

Transamerica Third Avenue Value

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Third Avenue Value is to seek long-term capital appreciation.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Third Avenue Management LLC (“Third Avenue”), seeks to achieve the fund’s investment objective by investing, under normal circumstances, at least 80% of the fund’s assets in common stocks of U.S. and non-U.S. issuers.

Third Avenue employs an opportunistic, bottom-up research process to identify companies that it believes to have strong balance sheets, competent managements, and understandable businesses, where equity securities are priced at a discount to its estimate of intrinsic value.

The fund invests in companies regardless of market capitalization. The mix of investments at any time will depend on the industries and types of securities believed to represent the best values, consistent with the fund’s investment strategies and restrictions.

What is “Bottom-UP” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broad market factors.

Third Avenue seeks to invest the fund’s assets in attractive equity investments, which generally exhibit four essential characteristics:

-   Strong Finances — the issuing company has a strong financial position, as evidenced by high-quality assets and a relative absence of significant liabilities.

-   Competent Management — the company’s management has a good track record as both owners and operators, and shares a common interest with outside, passive minority shareholders.

-   Understandable Business — comprehensive and meaningful financial and related information is available, providing reliable benchmarks to aid in understanding the company, its value and its dynamics.

-   Discount to Private Market Value — the market price lies substantially below a conservative valuation of the business as a private entity, or as a takeover candidate.

The fund may invest up to 15% of its assets in high-yield/high-risk fixed-income securities and other types of debt securities.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

The fund is a non-diversified fund.

What is a Non-Diversified Fund?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the fund generally may not have more than 25% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to

28

Transamerica Third Avenue Value

which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher-quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

-Non-Diversification

Focusing investments in a small number of issuers, industries or foreign currencies increases risk. Because the fund is non-diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified fund might be.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

29

Transamerica Third Avenue Value

These and other risks are more fully described in the section entitled “More on Strategies and Risks,” in Appendix A of this prospectus.

-Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the SAI. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 3000^® Value Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		6/30/2008		(1.75)	%
Worst Quarter:		12/31/2008		(27.60)	%

Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(41.30)%		(29.16)%
Return after taxes on distributions3	(41.30)%		(29.59)%
Return after taxes on distributions and sale of fund shares3	(26.85)%		(24.47)%
Russell 3000 ® Value Index (reflects no deduction for fees, expenses, or taxes)	(36.25)%		(26.16)%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.

²  Class I commenced operations on May 1, 2007.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.80%
Distribution and service (12b-1) fees	N/A
Other expenses	0.06%
Total annual fund operating expenses	0.86%
Expense reduction(b)	0.00%
Net operating expenses	0.86%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.00% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.00% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	88	$	274	$	477	$	1,061

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information — Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the annual rate of 0.80% of the fund’s average daily net assets.

30

Transamerica Third Avenue Value

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.80% of the fund’s average daily net assets.

Sub-Adviser:

Third Avenue Management LLC (“Third Avenue”)

622 Third Avenue, 32nd Floor

New York, NY 10017-6707

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.40% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s annual report dated as of October 31, 2008.

Portfolio Managers:

Curtis R. Jensen, co-portfolio manager, is Co-Chief Investment Officer of Third Avenue. Mr. Jensen also serves as co-portfolio manager of Transamerica Third Avenue Value VP, an investment company with an investment program similar to that of the fund. He also manages the Third Avenue Small-Cap Value Fund and is co-portfolio manager of the Third Avenue Variable Series Trust Portfolio. Mr. Jensen joined Third Avenue in 1995. Previously, he held various corporate finance positions with Manufacturers Hanover Trust Company and Enright & Company, a private investment banking firm. Mr. Jensen received an M.B.A. from the Yale School of Management and a B.A. in economics from Williams College.

Yang Lie, co-portfolio manager, is Director of Research for Third Avenue. As Director of Research, she is responsible for ensuring the integrity of the research process at Third Avenue. Ms. Lie previously managed Transamerica Third Avenue Value VP or its predecessor from 1998 to 2003. Prior to being appointed Director of Research, Ms. Lie was senior portfolio manager for Third Avenue’s private and institutional advisory business. She joined M.J. Whitman, Third Avenue’s affiliated broker dealer, in 1996. Ms. Lie began her career in the software and hardware design/development area of Motorola, then was an equity analyst with Prudential Securities. Ms. Lie received an M.B.A. in finance from the University of Chicago and a B.S. in electrical engineering from Marquette University.

Kathleen K. Crawford, assistant portfolio manager, is a research analyst for Third Avenue. She joined Third Avenue in 2003. Previously, Ms. Crawford was an equity research associate for Alliance Capital Management. Ms. Crawford received an M.B.A. from Columbia Business School and a B.A. in economics from Northwestern University.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

31

Transamerica Oppenheimer Small- & Mid-Cap Value

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Oppenheimer Small- & Mid-Cap Value is to seek capital appreciation.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, OppenheimerFunds, Inc. (“Oppenheimer”) seeks to achieve this objective by investing mainly in stocks of U.S. issuers having a market capitalization up to $13 billion. That includes both small cap stocks (stocks of issuers having a market capitalization under $3 billion) and mid cap stocks (stocks of issuers having a market capitalization between $3 billion and $13 billion). The fund has no fixed ratio for small cap and mid cap stocks in its portfolio, and while its focus is on stocks of U.S. companies, it may invest in stocks of small and mid cap foreign issuers as well. Under normal market conditions the fund will invest at least 80% of its net assets in equity securities of small-cap and mid-cap domestic and foreign issuers. The fund emphasizes investment in equity securities of companies that Oppenheimer believes are undervalued in the marketplace.

In selecting securities for purchase or sale by the fund, Oppenheimer uses a “value” approach to investing. The fund’s portfolio manager searches for securities of companies believed to be undervalued in the marketplace, in relation to factors such as a company’s book value, sales, earnings, growth potential and cash flows. The portfolio manager selects securities one at a time. This is called a “bottom up” approach, and the portfolio manager uses fundamental company analysis to focus on particular companies before considering industry trends. The portfolio manager considers the following factors in assessing a company’s prospects: favorable supply/demand conditions for key products; development of new products or businesses; quality of management; competitive position in the marketplace; and allocation of capital.

What is “Bottom Up” Analysis?

When a sub-adviser uses a “bottom up” approach, it looks primarily at individual companies against the context of broad market factors.

While the fund invests primarily in common stocks, it may also invest in preferred stocks and securities convertible into common stocks. Although they are debt securities, the sub-adviser considers some convertible securities to be “equity equivalents” because of the conversion feature, and their credit rating has less impact on the investment decision than in the case of other debt securities. Nevertheless, convertible securities are subject to both credit risk and interest rate risk. To the extent that the fund buys convertible securities (or other debt securities), it will focus primarily on investment grade securities, which pose less credit risk than other lower-grade securities.

At times, the fund may increase the relative emphasis of its investments in a particular industry or industrial sector and it will then be subject to industry focus risk. To some extent, this risk is limited by the fund’s policy of not concentrating its assets in investments in any one industry.

To seek its investment objective, the fund can buy and sell futures contracts, put and call options, forward contracts and other derivatives. Some derivatives strategies could hedge the fund’s portfolio against price fluctuations. Other strategies would tend to increase the fund’s exposure to the securities market. Forward contracts could be used to try to manage foreign currency risks on the fund’s foreign investments.

The fund may also invest in unseasoned companies and illiquid, restricted securities. The fund may have a high portfolio turnover rate.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established

32

Transamerica Oppenheimer Small- & Mid-Cap Value

companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other

33

Transamerica Oppenheimer Small- & Mid-Cap Value

securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another may remove the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

-Portfolio Turnover

The fund may engage in a significant number of short-term transactions, which may adversely affect the fund performance. Increased turnover results in higher brokerage costs or mark-up charges for the fund. The fund ultimately passes these costs on to shareholders. Short-term trading may also result in short-term capital gains, which are taxed as ordinary income to shareholders.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 2500^® Value Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

  Year-by-Year Total Return as of 12/31 (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		6/30/2007		8.44	%
Worst Quarter:		12/31/2008		(30.46)	%

Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(49.20)%		(16.74)%
Return after taxes on distributions3	(49.23)%		(17.68)%
Return after taxes on distributions and sale of fund shares3	(31.95)%		(14.05)%
Russell 2500 ® Value Index (reflects no deduction for fees, expenses, or taxes)	(31.99)%		(13.01)%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.

34

Transamerica Oppenheimer Small- & Mid-Cap Value

2	Class I commenced operations August 1, 2006.
3	The after tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.93%
Distribution and service (12b-1) fees	N/A
Other expenses	0.07%
Total annual fund operating expenses	1.00%
Expense reductionb	0.00%
Net operating expenses	1.00%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.15% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.15% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	102	$	318	$	552	$	1,225

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $100 million	0.95%
Over $100 million up to $250 million	0.90%
Over $250 million up to $500 million	0.85%
Over $500 million	0.825%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.93% of the fund’s average daily net assets.

Sub-Adviser:

OppenheimerFunds, Inc. (“Oppenheimer”)

Two World Financial Center

225 Liberty Street, 11th Floor

New York, NY 10281-1008

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.40%
Over $250 million up to $500 million	0.375%
Over $500 million	0.35%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

John Damian serves as portfolio manager of this fund.

Mr. Damian, Portfolio Manager, is a Vice President at Oppenheimer. Before joining Oppenheimer in September 2001, he was a senior equity analyst at Citigroup Asset Management from November 1999 through September 2001. Prior to that, from October 1997 through November 1999, he was a senior research analyst at Pzena Investment Management.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

35

Transamerica BNY Mellon Market Neutral Strategy

Summary of Risks and Returns

Objective

­ ­

The investment objective of Transamerica BNY Mellon Market Neutral Strategy is to seek investment returns exceeding the 3-month U.S. Treasury Bill from a broadly diversified portfolio of U.S. stocks while neutralizing the general risks associated with stock market investing.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Mellon Capital Management Corporation (a fully owned subsidiary of the Bank of New York Mellon Corporation) (“BNY Mellon”), seeks to achieve this objective by using a market neutral strategy and investing, under normal circumstances, at least 80% of the fund’s assets in equity securities (excluding cash collateral). BNY Mellon believes that employing disciplined investment strategies based on fundamental concepts, which are quantitatively implemented, provides the best opportunity to add value by obtaining positive returns while maintaining an acceptable level of risk.

BNY Mellon seeks to construct for the fund a diversified portfolio that has limited exposure to the U.S. equity general market risk and near neutral exposure to specific industries, sectors and capitalization ranges. To do this, BNY Mellon seeks to hold approximately equal dollar amounts of equity securities long and short, so that the general stock market, industry or sector exposures affecting the securities held long and short will substantially offset each other. If this strategy is successful, the result will be a “market-neutral” portfolio, the returns of which tend to be driven primarily by the portfolio manager’s stock selection rather than by the effects of broader market conditions.

It is currently expected that the long and short positions of the fund will consist primarily of large-capitalization and medium-capitalization U.S. equity securities listed on the New York, American, and NASDAQ exchanges. The fund may also take long and short positions in securities of non-U.S.-domiciled companies if they are denominated in U.S. dollars and traded on a U.S. exchange, either directly or through ADRs or similar securities. As discussed below, the fund will also hold cash and cash equivalents to provide collateral for its short positions.

BNY Mellon seeks to identify and buy for the fund long portfolio securities it believes are undervalued relative to their peers or which demonstrate attractive momentum and growth characteristics. Conversely, when BNY Mellon believes that a security is overvalued relative to its peers or has negative growth prospects, it may seek to sell it short at the then-current market price. By taking approximately equal long and short positions in different stocks in the same industry and sector, the portfolio manager attempts to design a portfolio the long and short positions of which will generally offset each other in the aggregate in terms of sources of systematic risk. These sources include beta, sector and industry exposures, capitalization, and volatility.

Individual securities will be determined to be candidates for the long or short sub-portfolios primarily by using proprietary quantitative selection models developed by BNY Mellon. These models put a balanced emphasis on value characteristics and momentum-and-growth characteristics.

Due to the continuous changes in the prices of the short positions and long positions, the market value of the short positions and long positions will not always be exactly equal. For example, if the fund is successful, its long positions may increase in value while the short positions decrease in value, thus affecting the market neutrality of the fund. It is the intention of the portfolio manager to take action approximately weekly to rebalance the long and short positions to maintain a market neutral exposure. In addition, BNY Mellon will take action to rebalance the portfolio when the imbalance reaches proprietary thresholds, pre-established by BNY Mellon. This can be done by adding or eliminating short or long positions depending on the rebalancing needs.

The fund may achieve a positive return if either the value of securities in the fund’s long portfolio increases more than the securities underlying its short positions, or the value of securities in the fund’s long portfolio decreases less than the securities underlying its short positions, each taken as a whole. Conversely, the fund will incur losses if either the securities underlying its short positions increase in value more than the securities in its long portfolio, or the securities underlying its short positions decrease in value less than the securities in its long portfolio. BNY Mellon will determine the size of each long or short position by attempting to balance the competing concerns of the relative attractiveness (from a long or short perspective) of each position with its impact on the risk characteristics of the overall portfolio.

Although BNY Mellon attempts to achieve returns for the fund’s shareholders that exceed the return of the 3-month U.S. Treasury Bill, an investment in the fund is significantly different from, and involves greater risks than, an investment in 3-month U.S. Treasury Bills. This is because, among other things, U.S. Treasury Bills are backed by the full faith and credit of the U.S. Government; U.S. Treasury Bills have a fixed rate of return; investors in U.S. Treasury Bills do not risk losing their investment; and an investment in the fund is more volatile than an investment in U.S. Treasury Bills. Investors could lose money on their investments in the fund or the fund could perform less well than other possible investments if any of the following occurs (among other things):

-   The fund’s long positions decline in value to a degree that is not offset by decreases in the value of the securities sold short, or, conversely, the value of the securities sold short increases to a degree that is not offset by appreciation in the value of securities in the long portfolio.

-   The combination of securities held long and sold short fail to protect the fund from overall stock market risk and other systematic risks as anticipated by the sub-adviser.

-   The portfolio manager’s judgment about the attractiveness, relative value or potential appreciation of a particular sector, security or hedging strategy proves to be incorrect. Because the fund’s returns are expected to be driven primarily by BNY Mellon’s stock selection (both long and short), rather than general equity market movements, if BNY Mellon’s judgment about individual stocks proves to be incorrect, the fund could incur losses even during periods when the overall movement in stock prices are positive. Also, because BNY Mellon could make incorrect judgments about both the long and the short positions of the fund, its potential losses may exceed those of conventional stock mutual funds that hold only long portfolios.

36

Transamerica BNY Mellon Market Neutral Strategy

No purchase or short sale of any individual equity security will be made if it causes the position to exceed 5% of the net assets of the fund, at the time of purchase or short sale.

What is Market Neutral?

A “market neutral” strategy is one where a fund takes a long position and a short position at the same time. At any given time some securities are overvalued and others are undervalued. A fund tries to take advantage of this temporary disequilibrium by seeking to buy long undervalued securities and at the same time seeking to sell short overvalued securities which have the aggregate value approximately equal, and systematic risks similar, to undervalued securities being bought long. By following a market neutral strategy, a fund seeks positive investment returns while neutralizing the general risks associated with stock market investing.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Short Sales

A short sale may be effected by selling a security that the fund does not own. In order to deliver the security to the purchaser, the fund borrows the security, typically from a broker/dealer or an institutional investor. The fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the fund would incur a loss; conversely, if the price declines, the fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the fund held only long positions. The fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.

A short sale may also be effected “against the box” if, at all times when the short position is open, the fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the fund would forego the potential realization of the increased value of the shares sold short.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as

37

Transamerica BNY Mellon Market Neutral Strategy

risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Leveraging

When the fund engages in transactions that have a leveraging effect on the fund’s portfolio, the value of the fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the fund would otherwise have. The fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause the fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

-Portfolio Turnover

The fund generally will engage in a significant number of short-term transactions, which may adversely affect performance. Increased turnover results in higher brokerage costs or mark-up charges for the fund. The fund ultimately passes these costs on to shareholders. Short-term trading may also result in short-term capital gains, which are taxed as ordinary income to shareholders.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks,” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Merrill Lynch 3-Month Treasury Bill +3% Wrap Index (“ML 3-Month T-Bill Index”), a widely recognized, unmanaged index of market performance that comprises U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		6/30/2008		2.98	%
Worst Quarter:		9/30/2008		(3.52)	%

Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	2.65%		0.11%
Return after taxes on distributions3	2.47%		(1.02)%
Return after taxes on distributions and sale of fund shares3	1.97%		(0.51)%
ML 3-Month T-Bill Index (reflects no deduction for fees, expenses, or taxes)	5.16%		6.67%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.

²  Class I commenced operations on January 3, 2007.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

38

Transamerica BNY Mellon Market Neutral Strategy

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expense that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	1.40%
Distribution and service (12b-1) fees	N/A
Dividend expense on short salesb	1.31%
Other expenses	0.08%
Total annual fund operating expenses	2.79%
Expense Reductionc	0.00%
Net Operating Expenses	2.79%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  When a cash dividend is declared on a stock the fund has sold short, the fund is required to pay an amount equal to that dividend to the party from whom the fund borrowed the stock and to record the payment of the dividend as an expense.

^c  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010 to waive fees and/or reimburse expenses to the extent that the fund’s total operating expenses exceed 1.65% of average daily net assets (excluding certain extraordinary expenses and dividend expense on short sales). TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.65% of average daily net assets (excluding certain extraordinary expenses and dividend expense on short sales).

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	282	$	865	$	1,474	$	3,119

Dividend Expense on Short Sales

The fund engages in short selling as a primary investment strategy. A short sale occurs when the fund sells a stock it does not own and then borrows the stock in order to settle the transaction. Until the borrowed stock is returned to the lender, the fund is required to pay the lender the amount of any dividends declared on the stock. Having sold the borrowed shares, the fund does not itself collect the dividends, and thus has a net expense payable to the lender. This payment is recorded as a “dividend expense on short sales” on the financial statements of the fund and is reported as part of the fund’s expense ratio. It is important to note that when the fund sells a stock short, the proceeds are typically held in cash, which earns interest at a negotiated rate. This interest, when combined with the fund’s other investment returns, is expected to offset the fund’s short sale dividend expenses and thereby reduce total expenses.

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at an annual rate of 1.40% of the fund’s average daily net assets.

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 1.40% of the fund’s average daily net assets.

Sub-Adviser:

Mellon Capital Management Corporation (“BNY Mellon”)

50 Fremont Street, Suite 3900

San Francisco, CA 94105

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.90% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Michael F. Dunn, CFA, lead portfolio manager, is a Director and Senior Portfolio Manager at BNY Mellon. Mr. Dunn has managed portfolios with similar strategies at BNY Mellon since 2002. Mr. Dunn received a B.S. in Mathematics and Linguistics from Yale University, and earned his CFA charter in 1994. Prior to joining BNY Mellon in 1999, he was responsible for quantitative R&D and “hybrid” portfolio management, including market-neutral strategies, at Wellington Management Company in Boston. He previously ran index and active portfolios and performed quantitative research at the IBM Retirement Fund and prior to that at Mellon Capital Management. Mr. Dunn is a member of the Chicago Quantitative Alliance and the Boston Security Analyst Society.

39

Transamerica BNY Mellon Market Neutral Strategy

Oliver E. Buckley, back-up portfolio manager, is Executive Vice President and Head of Active Equity Strategies at BNY Mellon. Prior to joining BNY Mellon in 2000, he was responsible for research in the Structured Products Group at INVESCO. Mr. Buckley previously served as a portfolio manager at Martingale Asset Management and spent 5 years at BARRA as the manager of Equity Consulting Service. He received his MBA from the University of California at Berkeley. In addition, he earned an M.S. degree in Engineering-Economics Systems and a B.S. degree in Mathematical Sciences, both from Stanford University.

Langton C. (Tony) Garvin, CFA, back-up portfolio manager, received a B.S. degree in Business Administration from Skidmore College and an M.S. degree in Physics from the University of Massachusetts. He has also completed postgraduate coursework at the Massachusetts Institute of Technology. Prior to joining BNY Mellon, Mr. Garvin was a portfolio manager at Batterymarch Financial Management. He also previously served as portfolio manager and Quantitative Analyst at Grantham, Mayo, Van Otterloo and Company, was a consultant at Independence Investment Associates, and held responsibilities related to data analysis at Nichols Research Corporation. Mr. Garvin belongs to the Boston Security Analysts Society.

BNY Mellon’s portfolio managers also collectively monitor daily portfolio activity, acting as a check and balance on policy implementation.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of fund shares.

40

Transamerica Equity

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Equity is to maximize long-term growth.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), uses a “bottom up” approach to investing and builds the fund’s portfolio one company at a time by investing fund assets principally in:

-   equity securities

TIM generally invests at least 80% of the fund’s net assets in a diversified portfolio of domestic common stocks. TIM believes in long-term investing and does not attempt to time the market.

TIM employs a rigorous research approach and buys securities of companies it believes have the defining features of premier growth companies that are undervalued in the stock market. Premier companies, in the opinion of TIM, have many or all of the following features:

-   shareholder-oriented management

-   dominance in market share

-   cost production advantages

-   leading brands

-   self-financed growth

-   attractive reinvestment opportunities

What is a “Bottom Up” Analysis?

When a sub-adviser uses a “bottom up” approach, it looks primarily at individual companies against the context of broader market factors.

While TIM invests principally in domestic common stocks, the fund may, to a lesser extent, invest in other securities or use other investment strategies in pursuit of its investment objective.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be

41

Transamerica Equity

disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for their greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   changes in currency values

-   currency speculation

-   currency trading costs

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Focused Investing

To the extent the fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

42

Transamerica Equity

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 1000 ^® Growth Index, a widely recognized unmanaged index of market performance that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2007		7.15%
Worst Quarter:		12/31/2008		(23.92)%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(45.09)%		(10.40)%
Return after taxes on distributions3	(45.22)%		(10.50)%
Return after taxes on distributions and sale of fund shares3	(29.31)%		(8.70)%
Russell 1000 ® Growth Index (reflects no deduction for fees, expenses, or taxes)	(38.44)%		(8.38)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses
(expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.72%
Distribution and service (12b-1) fees	N/A
Other expenses	0.03%
Total annual fund operating expenses	0.75%
Expense reductionb	0.00%
Net operating expenses	0.75%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.17% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.17% of average daily net assets, excluding certain extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	77	$	240	$	417	$	930

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $500 million	0.75%
Over $500 million up to $2.5 billion	0.70%
Over $2.5 billion	0.65%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.72% of the fund’s average daily net assets.

43

Transamerica Equity

Sub-Adviser

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $500 million	0.35%
Over $500 million up to $2.5 billion	0.30%
Over $2.5 billion	0.25%

less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with the same named fund managed by the sub-adviser for Transamerica Series Trust.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Gary U. Rollé, CFA

Portfolio Manager (lead)

Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.

Geoffrey I. Edelstein, CFA, CIC

Portfolio Manager (co)

Geoffrey I. Edelstein is Principal, Managing Director and Portfolio Manager at TIM. He co-manages institutional and TIM’s private separate accounts and sub-advised funds in the Equity disciplines. Mr. Edelstein’s analytical responsibilities include the Consumer Staples sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Westcap was co-founded by Mr. Edelstein in 1992. Prior to Westcap, he practiced Corporate and Real Estate Law from 1988-1991. Mr. Edelstein earned a B.A. from University of Michigan and a J.D. from Northwestern University School of Law. He was a member of the AIMR Blue Ribbon Task Force on Soft Dollars, 1997, and has earned the right to use the Chartered Financial Analyst designation. He is also a member of the Board of Governors’ of the Investment Adviser Association and the Board of Directors of EMQ Families First, the largest children’s agency in California. Mr. Edelstein has 17 years of investment experience.

Edward S. Han

Portfolio Manager (co)

Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

John J. Huber, CFA

Portfolio Manager (co)

John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience.

Peter O. Lopez

Portfolio Manager (co)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services from 1997-2000. He holds an M.BA. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

Erik U. Rollé

Portfolio Manager (co)

Erik U. Rollé is a Securities Analyst and Co-Portfolio Manager at TIM. He co-manages sub-advised funds and institutional separate accounts in the Growth Equity discipline. Prior to joining TIM in 2005, Mr. Rollé worked as a Research Associate at Bradford & Marzec where his primary responsibilities were within trading and credit research. He received a B.S. in Finance and a B.S. in Journalism from the University of Colorado at Boulder. Mr. Rollé has 6 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

44

Transamerica Growth Opportunities

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Growth Opportunities is to maximize long-term growth.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), uses a “bottom-up” approach to investing and builds the fund’s portfolio one company at a time by investing fund assets principally in:

-   equity securities such as common stocks, preferred stocks, rights, warrants and securities convertible into or exchangeable for common stocks of small and medium capitalization companies

TIM, under normal market conditions, invests at least 65% of the fund’s assets in a diversified portfolio of equity securities. The companies issuing these securities are companies with small- and medium-sized market capitalization whose market capitalization or annual revenues are no more than $10 billion at the time of purchase.

What is a “Bottom-Up” Analysis?

When a sub-adviser uses a “bottom up” approach, it looks primarily at individual companies against the context of broader market factors.

TIM selects stocks that are issued by U.S. companies which, in its opinion, show:

-   strong potential for steady growth

-   high barriers to competition

-   experienced management incentivized along shareholder interests

It is the opinion of TIM that companies with smaller and medium-sized capitalization levels are less actively followed by security analysts, and, therefore, they may be undervalued, providing strong opportunities for a rise in value.

While the fund invests principally in equity securities, TIM may also, to a lesser extent, invest in debt securities or other securities and investment strategies in pursuit of its investment objective.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss

45

Transamerica Growth Opportunities

of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Small- or Medium-Sized Companies

Investing in small and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

46

Transamerica Growth Opportunities

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell Midcap^® Growth Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell mid-cap companies with higher price-to-book ratios and higher forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2007		13.22%
Worst Quarter:		12/31/2008		(23.67)%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(40.71)%		(7.22)%
Return after taxes on distributions3	(40.71)%		(7.22)%
Return after taxes on distributions and sale of fund shares3	(26.46)%		(6.06)%
Russell Midcap® Growth Index (reflects no deduction for fees, expenses, or taxes)	(44.32)%		(10.33)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as 401(k) plans.
2	Class I commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.79%
Distribution and service (12b-1) fees	N/A
Other expenses	0.07%
Total annual fund operating expenses	0.86%
Expense reductionb	0.00%
Net operating expenses	0.86%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.40% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses

47

Transamerica Growth Opportunities

reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.40% of average daily net assets, excluding certain extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	88	$	274	$	477	$	1,061

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.80%
Over $250 million up to $500 million	0.75%
Over $500 million	0.70%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.79% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Up to $100 million	0.40%
Over $100 million	0.35%

less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Edward S. Han

Portfolio Manager (lead)

Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

John J. Huber, CFA

Portfolio Manager (lead)

John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

48

Transamerica Small/Mid Cap Value

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Small/Mid Cap Value is to seek to maximize total return.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve this objective by investing, under normal conditions, at least 80% of its net assets in small- and mid-cap equity securities of domestic companies. The fund defines small- and mid-cap equities as companies whose market capitalization falls within the range of $100 million to $8 billion.

The fund generally will invest in small- and mid-cap equities with valuation characteristics including low price/earnings, price/book, and price/cash flow ratios. These characteristics are evaluated based upon a proprietary analysis of normalized levels of profitability. TIM’s security selection process favors companies with above-average normalized net margins, returns on equity, returns on assets, free cash flow generation and revenue and earnings growth rates. Trends in balance sheet items including inventories, account receivables, and payables are scrutinized as well. TIM also reviews the companies’ products/services, market position, industry condition, financial and accounting policies and quality of management. Securities of issuers that possess the greatest combination of the aforementioned attributes are then prioritized as candidates for purchase.

Although the fund will invest primarily in publicly traded U.S. securities, it will be able to invest up to 10% of its total assets in foreign securities, including securities of issuers in emerging countries and securities quoted in foreign currencies.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Small or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

49

Transamerica Small/Mid Cap Value

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 2500^® Value Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		6/30/2007		13.01	%
Worst Quarter:		12/31/2008		(25.08)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(38.56)%		(3.60)%
Return after taxes on distributions3	(39.31)%		(5.11)%
Return after taxes on distributions and sale of fund shares3	(25.08)%		(3.02)%
Russell 2500® Value Index (reflects no deduction for fees, expenses, or taxes)	(31.99)%		(7.91)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

50

Transamerica Small/Mid Cap Value

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the funds.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.78%
Distribution and service (12b-1) fees	N/A
Other expenses	0.07%
Total annual fund operating expenses	0.85%
Expense reductionb	0.00%
Net operating expenses	0.85%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.40% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.40% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	87	$	271	$	471	$	1,049

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $500 million	0.80%
Over $500 million	0.75%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.78% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $500 million	0.375%
Over $500 million	0.325%

less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Jeffrey J. Hoo, CFA

Portfolio Manager (lead)

Jeffrey J. Hoo is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Microcap Equity discipline. Mr. Hoo’s analytical responsibilities include the healthcare sector and industries within the consumer discretionary sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Hoo worked at Sony Pictures Entertainment and KPMG. He is also a past Vice President and board member of the Asian Professional Exchange of Los Angeles. Mr. Hoo earned a B.A. from Duke University and an M.B.A. from the University of California, Los Angeles. He has earned the right to use the Chartered Financial Analyst designation. Mr. Hoo has 11 years of investment experience.

51

Transamerica Small/Mid Cap Value

Joshua D. Shaskan, CFA

Portfolio Manager (lead)

Joshua D. Shaskan is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Small and Small/Mid (SMID) Growth Equity disciplines. He joined TIM in 2005 when the firm acquired Westcap Investors LLC. Prior to Westcap, Mr. Shaskan served as an Investment Specialist for three years at Wells Fargo Securities and was also previously a Financial Advisor at Prudential Securities. He earned a B.A. from the University of California, Davis, and an M.B.A. from the University of California, Los Angeles. Mr. Shaskan has earned the right to use the Chartered Financial Analyst designation and has 16 years of investment experience.

Thomas E. Larkin, III

Portfolio Manager (co)

Mr. Larkin co-manages institutional and retail portfolios in the diversified equity strategy. In addition, his senior securities analyst responsibilities include covering the producer durables, autos and transportation, and materials and processing sectors. He joined TIM in 2005 when the firm acquired Westcap Investors LLC. Prior to Westcap, Mr. Larkin interned with Morgan Stanley in the Private Wealth Management Division and with Trust Company of the West as an analyst with their Worldwide Opportunities Emerging Markets Fund. He earned a B.A. in economics from Duke University. Mr. Larkin is currently a CFA Level I candidate and has eight years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

52

Transamerica UBS Large Cap Value

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica UBS Large Cap Value is to seek to maximize total return, consisting of capital appreciation and current income.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, UBS Global Asset Management (Americas) Inc. (“UBS”), seeks to achieve this objective by investing, under normal circumstances, at least 80% of its net assets in equity securities of U.S. large capitalization companies. UBS defines large capitalization companies as those with a market capitalization of at least $3 billion. The fund may invest up to 20% of its net assets in companies that have market capitalizations within the range of the fund’s benchmark, the Russell 1000 ^® Value Index, but below $3 billion in market capitalization. Investments in equity securities may include, among others, dividend-paying securities, common stock, preferred stock, shares of investment companies, convertible securities, warrants and rights.

In selecting securities, the sub-adviser focuses on, among other things, identifying discrepancies between a security’s fundamental value and its market price. In this context, the fundamental value of a given security is the sub-adviser’s assessment of what a security is worth. The fund will select a security whose fundamental value it estimates to be greater than its market value at any given time. For each stock under analysis, the sub-adviser bases its estimates of value upon economic, industry and company analysis, as well as upon a company’s management team, competitive advantage and core competencies. The sub-adviser then compares its assessment of a security’s value against the prevailing market prices with the aim of constructing a portfolio of stocks with attractive relative price/value characteristics.

The fund may, but is not required to, use derivative instruments for risk management purposes or as part of the fund’s investment strategies. Generally, derivatives are financial contracts whose value depends upon, or is derived from, the value of an underlying asset, reference rate, or index, and may relate to stocks, bonds, interest rates, currencies or currency exchange rates, and related indexes. Examples of derivatives include options and futures. The fund may use derivatives to earn income and enhance returns, to manage or adjust the risk profile of the fund, to replace more traditional direct investments, or to obtain exposure to certain markets.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

53

Transamerica UBS Large Cap Value

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I performance has varied from year to year, and how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 1000 ^® Value Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		12/31/2006		7.72	%
Worst Quarter:		12/31/2008		(25.33)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(39.89)%		(4.64)%
Return after taxes on distributions3	(40.12)%		(5.09)%
Return after taxes on distributions and sale of fund shares3	(25.63)%		(3.82)%
Russell 1000 ® Value Index (reflects no deduction for fees, expenses, or taxes)	(36.85)%		(3.36)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 8, 2004.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

54

Transamerica UBS Large Cap Value

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.76%
Distribution and service (12b-1) fees	N/A
Other expenses	0.04%
Total annual fund operating expenses	0.80%
Expense reductionb	0.00%
Net operating expenses	0.80%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.02% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.02% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	82	$	255	$	444	$	990

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $200 million	0.82%
Over $200 million up to $400 million	0.76%
Over $400 million up to $750 million	0.74%
Over $750 million up to $1 billion	0.71%
Over $1 billion up to $1.5 billion	0.67%
Over $1.5 billion	0.62%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.76% of the fund’s average daily net assets.

Sub-Adviser:

UBS Global Asset Management (Americas) Inc. (“UBS”)

One North Wacker Drive

Chicago, Illinois 60606

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $400 million	0.32%
Over $400 million up to $750 million	0.30%
Over $750 million up to $1 billion	0.27%
Over $1 billion up to $1.5 billion	0.25%
Over $1.5 billion	0.20%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Investment decisions for the fund are made by an investment management team at UBS. Thomas M. Cole, John Leonard, Thomas Digenan and Scott Hazen are the members of the North American Equities investment management team primarily responsible for the day-to-day management of the UBS U.S. Large Cap Equity Fund and UBS U.S. Large Cap Value Equity Fund. Mr. Cole, as the head of the investment management team, leads the portfolio construction process and reviews the overall composition of the fund’s portfolio to ensure compliance with its stated investment objectives and strategies. Mr. Leonard, Mr. Digenan and Mr. Hazen work closely with Mr. Cole on portfolio construction. Information about Messrs. Cole, Leonard, Digenan and Hazen is provided below.

Thomas M. Cole is Head of North American Equities, Research Director for North American Equities and a Managing Director at UBS Global Asset Management. Mr. Cole has been an investment professional with UBS Global Asset Management since 1985 and a portfolio manager of the fund since its inception.

55

Transamerica UBS Large Cap Value

John C. Leonard is Global Head of Equities and a member of the UBS Global Managing Board. Mr. Leonard has been an investment professional with UBS Global Asset Management since 1991 and a portfolio manager of the fund since its inception.

Thomas J. Digenan has been a North American Equity Strategist at UBS Global Asset Management since 2001 and is a Managing Director of UBS Global Asset Management. Mr. Digenan was President of The UBS Funds from 1993 to 2001. Mr. Digenan has been a portfolio manager of the fund since its inception.

Scott C. Hazen has been a North American Equity Strategist at UBS Global Asset Management since 2004 and is an Executive Director of UBS Global Asset Management. From 1992 until 2004, Mr. Hazen was a Client Service and Relationship Management professional with UBS Global Asset Management. Mr. Hazen has been a portfolio manager of the fund since its inception.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

56

Transamerica Van Kampen Mid-Cap Growth

Summary of Risks and Returns

Objective

­ ­

The investment objective of Transamerica Van Kampen Mid-Cap Growth is capital appreciation.

Principal Strategies and Policies

­ ­

Under normal market conditions, the fund will invest at least 80% of its net assets in securities of medium-sized companies at the time of investment. Under current market conditions, a medium-sized company is generally defined by reference to those companies represented in the Russell Midcap^® Growth Index. The fund’s sub-adviser is Morgan Stanley Investment Management Inc., which does business in certain instances (including its role as sub-adviser to this fund), under the name Van Kampen (“Van Kampen”). The Van Kampen Growth Team seeks to invest in high quality companies it believes have sustainable competitive advantages and the ability to redeploy capital at high rates of return. The Van Kampen Growth Team typically favors companies with rising returns on invested capital, above average business visibility, strong free cash flow generation and attractive risk/reward. The Van Kampen Growth Team generally considers selling an investment when it determines the company no longer satisfies its investment criteria.

The fund may also invest in common stocks and other equity securities of small-and large-sized companies, as well as preferred stocks, convertible securities, rights and warrants, and debt securities.

Van Kampen also may utilize derivative instruments, including options on securities, futures contracts and options thereon and various currency transactions in several different ways, depending upon the status of the fund’s investment portfolio and Van Kampen’s expectations concerning the securities market. Derivative instruments used by the fund will be counted toward the 80% policy discussed above to the extent they have economic characteristics similar to the securities included within that policy.

Van Kampen may invest up to 25% of the fund’s assets in securities of foreign companies, including emerging market securities, primarily through ownership of depositary receipts. An issuer generally will be deemed to be economically tied to the country (or countries) in which the issuer has at least 50% of its assets or from which it derives at least 50% of its revenues or profits, or in whose securities markets its securities principally trade.

The fund may also invest up to 10% of its assets in real estate investment trusts (“REITs”).

In times of stable or rising stock prices, the fund generally seeks to be fully invested in the instruments described above except that at least a small portion of fund assets generally will be held as cash, repurchase agreements, or cash equivalents to honor redemption requests and for other short-term needs.

To the extent that fund assets are invested in cash equivalents, in times of rising market prices, the fund may underperform the market in proportion to the amount of cash equivalents in its portfolio. By purchasing stock index futures contracts, stock index call options, or call options on stock index futures contracts, however, the fund can seek to “equitize” the cash portion of its assets and obtain performance that is equivalent to investing directly in equity securities.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

57

Transamerica Van Kampen Mid-Cap Growth

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a failing market.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are long-term debt obligations of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock. As the market price of the underlying common stock declines, the convertible security tends to trade increasingly on a yield basis, and thus may not depreciate to the same extent as the underlying stock.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

58

Transamerica Van Kampen Mid-Cap Growth

-Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-REITS

Real estate markets have been particularly affected by the financial crisis. Equity REITs can be affected by any changes in the value of the properties owned. A REIT’s performance depends on the types and locations of the properties it owns and on how well it manages those properties or loan financings. A decline in rental income could occur because of extended vacancies, increased competition from other properties, tenants’ failure to pay rent or poor management. A REIT’s performance also depends on the company’s ability to finance property purchases and renovations and manage its cash flows. Because REITs are typically invested in a limited number of projects or in a particular market segment, they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. Loss of status as a qualified REIT or changes in the treatment of REITs under the federal tax law, could adversely affect the value of a particular REIT or the market for REITs as a whole.

-Investing Aggressively

-   The value of developing-company stocks may be very volatile, and can drop significantly in a short period of time.

-   Rights, options and futures contracts may not be exercised and may expire worthless.

-   Warrants and rights may be less liquid than stocks.

-   Use of futures and other derivatives may make the Fund more volatile.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks,” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell Midcap ^® Growth Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell mid-cap companies with higher price-to-book ratios and higher forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 (%)

Class I Shares

59

Transamerica Van Kampen Mid-Cap Growth

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2007		9.66	%
Worst Quarter:		12/31/2008		(25.98)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(46.37)%		(10.77)%
Return after taxes on distributions3	(46.38)%		(11.24)%
Return after taxes on distributions and sale of fund shares3	(30.13)%		(8.96)%
Russell Midcap ® Growth Index (reflects no deduction for fees, expenses, or taxes)	(44.32)%		(11.81)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations January 3, 2006.
3	The after tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.80%
Distribution and service (12b-1) fees	N/A
Other expenses	0.07%
Total annual fund operating expenses	0.87%
Expense reductionb	0.00%
Net operating expenses	0.87%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.00% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.00% of average daily net assets, excluding certain extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	89	$	278	$	482	$	1,073

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $1 billion	0.80%
Over $1 billion	0.775%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.80% of the fund’s average daily net assets.

Sub-Adviser:

Morgan Stanley Investment Management Inc.

doing business as Van Kampen (“Van Kampen”)

522 Fifth Avenue

New York, NY 10036

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM, at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $1 billion	0.40%
Over $1 billion	0.375%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

60

Transamerica Van Kampen Mid-Cap Growth

Portfolio Managers:

The fund is managed by members of Van Kampen’s Growth Team. Current members of the team jointly and primarily responsible for the day-to-day management of the fund are Dennis P. Lynch, David S. Cohen and Sam G. Chainani, each a Managing Director, and Alexander T. Norton, Jason C. Yeung and Armistead B. Nash, each an Executive Director. The team also manages Transamerica Van Kampen Small Company Growth and the growth equity portion of ATST Van Kampen Large Cap Core.

Dennis P. Lynch is responsible for the execution of the overall strategy of the fund. Mr. Lynch has worked at Van Kampen since 1998 and joined Van Kampen’s Growth Team in 2002. Prior to 2002, Mr. Lynch worked in an investment management capacity for Van Kampen.

David S. Cohen has worked for Van Kampen since 1993 and joined Van Kampen’s Growth Team in 2002. Prior to 2002, Mr. Cohen worked in an investment management capacity for Van Kampen.

Sam G. Chainani has worked for Van Kampen since 1996 and joined Van Kampen’s Growth Team in 2004. Prior to 2004, Mr. Chainani worked in an investment management capacity for Van Kampen.

Alexander T. Norton has worked for Van Kampen since 2000 and joined Van Kampen’s Growth Team in July 2005. Prior to July 2005, Mr. Norton worked in an investment management capacity for Van Kampen.

Jason C. Yeung has been associated with Van Kampen since 2002 and joined Van Kampen’s Growth Team in December 2007. Prior to December 2007, Mr. Yeung worked in a research capacity for Van Kampen.

Armistead B. Nash has worked for Van Kampen since 2002 and joined the Growth Team in 2004. Prior to 2004, he worked in an investment management capacity for Van Kampen.

Mr. Lynch is the lead manager of the fund, and Messrs. Cohen, Chainani, Norton, Yeung and Nash are co-portfolio managers. Mr. Lynch is responsible for the execution of the overall strategy of the fund.

Van Kampen has provided investment advisory services to various clients since 1935.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

61

Transamerica Van Kampen Small Company Growth

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Van Kampen Small Company Growth is to seek long-term capital appreciation by investing primarily in growth-oriented equity securities of small capitalization companies.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser is Morgan Stanley Investment Management Inc., which does business in certain instances (including its role as a sub-adviser to this fund) under the name Van Kampen (“Van Kampen”).

Van Kampen seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of small U.S. and foreign companies. Van Kampen selects issues from a universe comprised of small cap companies, most with market capitalizations of generally less than $4 billion.

The sub-adviser invests in companies that it believes exhibit some or all of the following characteristics: (i) superior growth prospects, (ii) rising trend in return on invested capital, and (iii) sustainable competitive advantages.

The Van Kampen Growth Team seeks to invest in high quality companies it believes have sustainable competitive advantages and the ability to redeploy capital at high rates of return. The Van Kampen Growth Team typically favors companies with rising returns on invested capital, above average business visibility, strong free cash flow generation and attractive risk/reward. The Van Kampen Growth Team generally considers selling an investment when it determines the company no longer satisfies its investment criteria.

Under normal circumstances, at least 80% of the fund’s net assets will be invested in equity securities of small capitalization companies. A company is considered to be a small cap company if it has a total market capitalization at the time of purchase of $4 billion or less. The market capitalization limit is subject to adjustment annually based upon Van Kampen’s assessment as to the capitalization range of companies which possess the fundamental characteristics of small cap companies. Van Kampen may invest up to 25% of the fund’s assets in securities of foreign issuers including emerging market securities, primarily through ownership of depositary receipts.

The fund will not invest more than 10% of its assets in lower rated debt securities (rated Ba or lower by Moody’s or BB or lower by S&P, or if not rated by Moody’s or S&P of equivalent quality as determined by Van Kampen), including foreign and domestic securities.

The fund may invest up to 10% of its assets in real estate investment trusts (“REITs”).

In anticipation of, or in response to, adverse market conditions or for cash management purposes, the fund may purchase and sell certain derivative instruments, such as options, futures and options on futures. Derivative instruments used by the fund will be counted toward the 80% policy discussed above to the extent they have economic characteristics similar to the securities included within that policy.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Smaller Companies

Investing in smaller companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

62

Transamerica Van Kampen Small Company Growth

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed

63

Transamerica Van Kampen Small Company Growth

countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-REITS

Real estate markets have been particularly affected by the financial crisis. Equity REITs can be affected by any changes in the value of the properties owned. A REIT’s performance depends on the types and locations of the properties it owns and on how well it manages those properties or loan financings. A decline in rental income could occur because of extended vacancies, increased competition from other properties, tenants’ failure to pay rent or poor management. A REIT’s performance also depends on the company’s ability to finance property purchases and renovations and manage its cash flows. Because REITs are typically invested in a limited number of projects or in a particular market segment, they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. Loss of status as a qualified REIT or changes in the treatment of REITs under the federal tax law, could adversely affect the value of a particular REIT or the market for REITs as a whole.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I performance has varied from year to year, and how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 2000^® Growth Index, a widely recognized, unmanaged index of market performance that measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		3/31/2006		12.03	%
Worst Quarter:		12/31/2008		(21.77)	%

Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(39.83)%		(4.65)%
Return after taxes on distributions3	(40.15)%		(5.50)%
Return after taxes on distributions and sale of fund shares3	(25.69)%		(3.85)%
Russell 2000® Growth Index (reflects no deduction for fees, expenses, or taxes)	(38.54)%		(4.10)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 8, 2004.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.95%
Distribution and service (12b-1) fees	N/A
Other expenses	0.07%
Total annual fund operating expenses	1.02%
Expense reductionb	0.00%
Net operating expenses	1.02%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.15% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on

64

Transamerica Van Kampen Small Company Growth

any day the estimated annualized fund operating expenses are less than 1.15% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	104	$	325	$	563	$	1,248

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $500 million	0.95%
Over $500 million	0.85%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.95% of the fund’s average daily net assets.

Sub-Adviser:

Morgan Stanley Investment Management Inc.

doing business as Van Kampen (“Van Kampen”)

522 Fifth Avenue

New York, New York 10036

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $500 million	0.45%
Over $500 million	0.40%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

The fund is managed by members of Van Kampen’s Growth Team. Current members of the team jointly and primarily responsible for the day-to-day management of the fund are David S. Cohen, Dennis P. Lynch and Sam G. Chainani, each a Managing Director, and Alexander T. Norton, Jason C. Yeung and Armistead B. Nash, each an Executive Director. The team has managed the fund since its inception in November 2004.

David S. Cohen has been with Van Kampen since 1993 and joined Van Kampen’s Growth Team in 2002. Prior to 2002, Mr. Cohen worked in an investment management capacity for Van Kampen.

Dennis P. Lynch has worked for Van Kampen since 1998 and joined Van Kampen’s Growth Team in 2002. Prior to 2002, Mr. Lynch worked in an investment management capacity for Van Kampen.

Sam G. Chainani has worked for Van Kampen since 1996 and joined Van Kampen’s Growth Team in 2004. Prior to 2004, Mr. Chainani worked in an investment management capacity for Van Kampen.

Alexander T. Norton has worked for Van Kampen since 2000 and joined Van Kampen’s Growth Team in July 2005. Prior to July 2005, Mr. Norton worked in an investment management capacity for Van Kampen.

Jason C. Yeung has been associated with Van Kampen since 2002 and joined Van Kampen’s Growth Team in December 2007. Prior to December 2007, Mr. Yeung worked in a research capacity for Van Kampen.

Armistead B. Nash has worked for Van Kampen since 2002 and joined the Growth Team in 2004. Prior to 2004, he worked in an investment management capacity for Van Kampen.

Mr. Cohen is the lead manager of the fund, and Messrs. Lynch, Chainani, Norton, Yeung and Nash are co-portfolio managers. Mr. Cohen is responsible for the execution of the overall strategy of the fund.

Van Kampen has provided investment advisory services to various clients since 1935.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

65

Transamerica BlackRock Global Allocation

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica BlackRock Global Allocation is to provide high total investment return.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, BlackRock Investment Management, LLC (“BlackRock”), seeks to achieve this objective through a fully managed investment policy utilizing United States and foreign equity securities, debt and money market securities, the combination of which may be varied from time to time both with respect to types of securities and markets in response to changing market and economic trends. The fund will invest its assets in issuers that are located in a number of countries throughout the world. There is no limit on the percentage of assets the fund can invest in a particular type of security. The fund generally seeks diversification across markets, industries and issuers as one of its strategies to reduce volatility. The fund has no geographic limits on where its investments may be located. This flexibility allows fund management to look for investments in markets around the world that it believes will provide the best relative asset allocation to meet the fund’s objective.

The fund uses its investment flexibility to create a portfolio of assets that, over time, tends to be relatively balanced between equity and debt securities and that is widely diversified among many individual investments. At any given time, however, the fund may emphasize either debt securities or equity securities. While the fund can, and does, look for investments in all the markets of the world, it will typically invest a majority of its assets in the securities of corporate and governmental issuers located in North and South America, Europe, Australia and the Far East. The fund may invest in both developed and emerging markets. BlackRock tries to identify the long term trends and changes that could benefit particular markets and/or industries relative to other markets and industries. BlackRock will consider such factors as the rate of economic growth, natural resources, capital reinvestment and the social and political environment when selecting a market. In deciding between equity and debt investments, BlackRock looks at a number of factors, including the relative opportunity for capital appreciation, capital recovery risk, dividend yields and the level of interest rates paid on debt securities of different maturities.

The fund may also, from time to time, identify certain real assets, such as real estate or precious metals, that BlackRock believes will increase in value because of economic trends and cycles or political or other events. The fund may invest a portion of its assets in securities related to those real assets such as stock, fixed-income securities or convertible securities issued by real estate investment trusts.

The fund can invest in all types of equity securities, including common stock, preferred stock, warrants and stock purchase rights of companies of any market capitalization. In selecting stocks and other securities that are convertible into stocks, BlackRock emphasizes stocks that it believes are undervalued. BlackRock places particular emphasis on companies with below average price/earnings ratios or that may pay above average dividends. The fund may also seek to invest in the stock of smaller or emerging growth companies that it expects will provide a higher total return than other equity investments. Investing in smaller or emerging growth companies involves greater risk than investing in more established companies.

The fund can invest in all types of debt securities of varying maturities, including U.S. and foreign government bonds, corporate bonds and convertible bonds, mortgage and asset backed securities, bank loans, and securities issued or guaranteed by certain international organizations such as the World Bank.

The fund may engage in short sales. The fund may make short sales of securities, either as a hedge against potential declines in value of a portfolio security or to realize appreciation when a security that the fund does not own declines in value. The fund will not make a short sale if, after giving effect to such sale, the market value of all securities sold short exceeds 10% of the value of its total assets. The fund may also make short sales “against the box” without being subject to this limitation. In this type of short sale, at the time of the sale, the fund owns or has the immediate and unconditional right to acquire the identical securities at no additional cost.

The fund may invest up to 35% of its total assets in “junk” bonds, corporate loans and distressed securities. Junk bonds are bonds that are rated below investment grade by independent rating agencies or are bonds that are not rated but which BlackRock considers to be of comparable quality. Corporate loans are direct obligations of U.S. or foreign corporations that are purchased by the fund in the secondary market. Distressed securities are securities that are in default on payments of interest or principal at the time the fund buys the securities or are issued by a bankrupt entity. These securities offer the possibility of relatively higher returns but are significantly riskier than higher rated debt securities. The fund will invest in these securities only when BlackRock believes that they will provide an attractive total return, relative to their risk, as compared to higher quality debt securities.

The fund may use derivatives to seek to increase the return of the fund and to hedge (or protect) the value of its assets against adverse movements in currency exchange rates, interest rates and movements in the securities markets.

The fund may invest in securities that provide a return based on fluctuations in a stock or other financial index. For example, the fund may invest in a security that increases in value with the price of a particular securities index. In some cases, the return on the security may be inversely related to the price of the index. This means that the value of the security will rise as the price of the index falls and vice versa. Although these types of securities may make it easier for the fund to access other markets or hedge risks of other assets held by the fund these securities are subject to the risks related to the underlying index or other assets.

The fund may also lend its portfolio securities, may hold non-US dollar cash investments, and may invest uninvested cash balances in affiliated money market funds.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during

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that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

The fund’s internal composite reference benchmark has at all times since the fund’s formation included a 40% weighting in non-U.S. securities. Throughout its history, the fund has maintained a weighting in non-U.S. securities, often exceeding the 40% benchmark weighting and rarely falling below this allocation. Under normal circumstances, the fund anticipates it will continue to allocate a substantial amount (approximately 40% or more – unless market conditions are not deemed favorable by BlackRock, in which case the fund would invest at least 30%) – of its total assets in securities (i) of foreign government issuers; (ii) of issuers organized or located outside the U.S.; (iii) of issuers which primarily trade in a market located outside the U.S.; and (iv) of issuers doing a substantial amount of business outside the U.S., which the fund considers to be companies that derive at least 50% of their revenue or profits from business outside the U.S. or have at least 50% of their sales or assets outside the U.S. For temporary defensive purposes the fund may deviate very substantially from the allocation described above.

Please see Appendix A for more information about investment strategies.

Principal Risks

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Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

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Transamerica BlackRock Global Allocation

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Distressed Securities

The fund may invest in distressed securities, including securities of issuers in bankruptcy. Distressed securities are speculative and involve substantial risks. Generally, the fund will invest in distressed securities when the sub-adviser believes they offer significant potential for higher returns or can be exchanged for other securities that offer this potential. However, there can be no assurance that the fund will achieve these returns or that the issuer will make an exchange offer or adopt a plan of reorganization. The fund will generally not receive interest payments on the distressed securities and may incur costs to protect its investment. In addition, distressed securities involve the substantial risk that principal will not be repaid. Distressed securities and any securities received in an exchange for such securities may be subject to restrictions on resale.

-Commodities

Because the fund may invest in instruments whose performance is linked to the price of an underlying commodity or commodity index, the fund may be subject to the risks of investing in physical commodities. These types of risks include regulatory, economic and political developments, weather events and natural disasters, pestilence, market disruptions and the fact that commodity prices may have greater volatility than investments in traditional securities.

-High-Yield Debt Securities

High yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High yield securities are not generally meant for short-term investing.

-Sovereign Debt

Sovereign debt instruments, which are debt obligations issued or guaranteed by a foreign governmental entity, are subject to the risk that the governmental entity may delay or fail to pay interest or repay principal on debt that it has issued or guaranteed, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, relationships with other lenders such as commercial banks, the relative size of the governmental entity’s debt position in relation to the economy or the failure to put in place economic reforms required by the International

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Monetary Fund or other multilateral agencies. If a governmental entity defaults, it may ask for more time in which to pay or for further loans, or it may ask for forgiveness of interest or principal on its existing debt. On the other hand, a governmental entity may be unwilling to renegotiate the terms of its sovereign debt. There may be no established legal process for a U.S. bondholder (such as the fund) to enforce its rights against a governmental entity that does not fulfill its obligations, nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected.

-Precious Metal Related Securities

Prices of precious metals and of precious metal related securities historically have been very volatile. The high volatility of precious metal prices may adversely affect the financial condition of companies involved with precious metals. The production and sale of precious metals by governments or central banks or other larger holders can be affected by various economic, financial social and political factors, which may be unpredictable and may have a significant impact on the prices of precious metals. Other factors that may affect the prices of precious metals and securities related to them include changes in inflation, the outlook for inflation and changes in industrial and commercial demand for precious metals.

-Real Estate Securities

Real estate markets have been particularly affected by the financial crisis. Investments in the real estate industry are subject to risks associated with direct investment in real estate. These risks may include:

-   Declining real estate value

-   Risks relating to general and local economic conditions

-   Over-building

-   Increased competition for assets in local and regional markets

-   Increases in property taxes

-   Increases in operating expenses or interest rates

-   Change in neighborhood value or the appeal of properties to tenants

-   Insufficient levels of occupancy

-   Inadequate rents to cover operating expenses

The performance of securities issued by companies in the real estate industry also may be affected by prudent management of insurance risks, adequacy of financing available in capital markets, competent management, changes in applicable laws and government regulations (including taxes) and social and economic trends.

-Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

-Short Sales

A short sale may be effected by selling a security that the fund does not own. In order to deliver the security to the purchaser, the fund borrows the security, typically from a broker/dealer or an institutional investor. The fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the fund would incur a loss; conversely, if the price declines, the fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the fund held only long positions. The fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.

A short sale may also be effected “against the box” if, at all times when the short position is open, the fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the fund would forego the potential realization of the increased value of the shares sold short.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

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Transamerica BlackRock Global Allocation

-Securities Lending

The fund may lend securities to other financial institutions that provide cash or other securities as collateral. This involves the risk that the borrower may fail to return the securities in a timely manner or at all. As a result, the fund may lose money and there may be a delay in recovering the loaned securities. The fund could also lose money if it does not recover the securities and/or the value of the collateral falls, including the value of investments made with cash collateral. These events could trigger adverse tax consequences to the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Loans

The fund may invest in certain commercial loans, including loans generally known as “syndicated bank loans,” by acquiring participations or assignments in such loans. The lack of a liquid secondary market for such securities may have an adverse impact on the value of the securities and the fund’s ability to dispose of particular assignments or participations when necessary to meet redemptions of shares or to meet the fund’s liquidity needs. When purchasing a participation, the fund may be subject to the credit risks of both the borrower and the lender that is selling the participation. When purchasing a loan assignment, the fund acquires direct rights against the borrowers, but only to the extent of those held by the assigning lender. Investment in loans through a direct assignment from the financial institution’s interests with respect to a loan may involve additional risks to the fund. It is also unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and representation. In the absence of definitive regulatory guidance, the fund relies on its sub-adviser’s research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the fund.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Financial Times Stock Exchange World Index (“FTSE World Index”), a widely recognized, unmanaged index of market performance that measures the large/mid cap aggregate of 2,700 stocks from the FTSE Global Equity Index Series. It covers 98% of the investable market capitalization. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		12/31/2006		5.87	%
Worst Quarter:		9/30/2008		(12.40)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(21.04)%		2.32%
Return after taxes on distribution3	(23.07)%		0.54%
Return after taxes on distributions and sale of fund shares3	(12.64)%		1.37%
FTSE World Index (reflects no deduction for fees, expenses, or taxes)	(40.91)%		(6.78)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I shares commenced operations on December 6, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

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Transamerica BlackRock Global Allocation

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.74%
Distribution and service (12b-1) fees	N/A
Other expenses	0.14%
Total annual fund operating expenses	0.88%
Expense reductionb	0.00%
Net operating expenses	0.88%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.00% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.00% of average daily net assets, excluding certain extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	90	$	281	$	488	$	1,084

Additional Information

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Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $100 million	0.80%
Over $100 million	0.72%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.74% of the fund’s average daily net assets.

Sub-Adviser:

BlackRock Investment Management, LLC (“BlackRock”)

800 Scudders Mill Road

Plainsboro, NJ 08536

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $100 million	0.44%
Over $100 million	0.32%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

The fund is managed by members of a team of investment professionals who participate in the team’s research process and stock selection. Dennis W. Stattman, Senior Portfolio Manager, Dan Chamby and Romualdo Roldan, are jointly and primarily responsible for the day-to-day management of the fund. James MacMillan is also a member of the fund’s portfolio management team.

Dennis Stattman, the overall investment supervisor for the fund, has been the fund’s senior portfolio manager since 2002. He was senior co-portfolio manager of the fund from 2000 to 2002 and an associate portfolio manager of the fund from 1989 to 2000. Mr. Stattman is a Managing Director of BlackRock, Inc. since 2006. Prior to joining BlackRock in 2006, he was a Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2000 to 2006 and a Director of MLIM from 1997 to 2000. He has been a portfolio manager with BlackRock or MLIM since 1989.

Dan Chamby has been the fund’s associate portfolio manager since 2003 and assists Mr. Stattman in the day-to-day management of the fund’s portfolio. He has been a Director of BlackRock, Inc. and an associate portfolio manager with the Global Allocation team since 2004. He was a Director of MLIM from 2000 to 2006.

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Romualdo Roldan has been the fund’s associate portfolio manager since 2006 primarily advising on investments in emerging markets. He has been a Director of BlackRock, Inc. and an associate portfolio manager with the Global Allocation team since 2006. He was a Director of MLIM from 2000 to 2006; a Vice President of MLIM from 1998 to 2000, and portfolio manager thereof from 1999 to 2006. Mr. Roldan was previously a Senior Vice President, Santander Investments from 1995 to 1998.

James MacMillan has been a member of the fund’s management team since 2006 primarily advising on investments in Europe. He is a Managing Director of BlackRock, Inc. since 2006. Prior to joining BlackRock in 2006, Mr. MacMillan was a Managing Director of MLIM from 2000 to 2006 and was a Director (Equity Fund Management) of an affiliate of the MLIM from 1993 to 2000. He has been a portfolio manager with BlackRock or MLIM for more than five years.

BlackRock and its affiliated investment advisers have provided investment advisory services to various clients for more than 20 years.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Transamerica Clarion Global Real Estate Securities

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Clarion Global Real Estate Securities is long-term total return from investments primarily in equity securities of real estate companies. Total return consists of realized and unrealized capital gains and losses plus income.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, ING Clarion Real Estate Securities, L.P. (“Clarion”), seeks to achieve its objective by investing principally in equity securities of real estate companies which include:

-   common stocks

-   convertible securities

Under normal conditions, the fund will invest at least 80% of its net assets in a portfolio of equity securities of issuers that are principally engaged in the real estate industry. Clarion considers issuers principally engaged in the real estate industries to be companies that derive at least 50% of their total revenues or earnings from owning, operating, developing and/or managing real estate. The fund’s portfolio will be composed of investments in issuers that are economically tied to at least three different countries, including the United States. An issuer generally will be deemed to be economically tied to the country (or countries) in which the issuer has at least 50% of its assets or from which it derives at least 50% of its revenues or profits, or in whose securities markets its securities principally trade. As a general matter, these investments are expected to be in common stocks of large-, mid- and small-sized issuers, including real estate investment trusts (“REITs”).

Clarion uses a disciplined two-step process for constructing the fund’s portfolio. First, Clarion selects sectors and geographic regions in which to invest, and determines the degree of representation of such sectors and regions, through a systematic evaluation of public and private property market trends and conditions. Second, Clarion uses an in-house valuation process to identify investments with superior current income and growth potential relative to their peers, through which it examines several factors, including value and property, capital structure, and management and strategy. Clarion may decide to sell investments held by the fund for a variety of reasons, such as to secure gains, limit losses, or redeploy fund investments into opportunities believed to be more promising. Clarion also may engage in frequent and active trading of fund investments to achieve the fund’s investment objective.

The fund may also invest in debt securities of real estate and non-real estate companies, mortgage-backed securities such as pass through certificates, real estate mortgage investment conduit (“REMIC”) certificates, and collateralized mortgage obligations (“CMOs”), or short-term debt obligations. However, the fund does not directly invest in real estate.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

This fund is non-diversified.

What is a Non-Diversified Fund?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the fund generally may not have more than 25% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and

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Transamerica Clarion Global Real Estate Securities

European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Real Estate Securities

Real estate markets have been particularly affected by the financial crisis. Investments in the real estate industry are subject to risks associated with direct investment in real estate. These risks may include, without limitation:

-   Declining real estate value

-   Risks relating to general and local economic conditions

-   Over-building

-   Increased competition for assets in local and regional markets

-   Increases in property taxes

-   Increases in operating expenses or interest rates

-   Change in neighborhood value or the appeal of properties to tenants

-   Insufficient levels of occupancy

-   Inadequate rents to cover operating expenses

The performance of securities issued by companies in the real estate industry also may be affected by prudent management of insurance risks, adequacy of financing available in capital markets, competent management, changes in applicable laws and government regulations (including taxes) and social and economic trends.

-REITS

Real estate markets have been particularly affected by the financial crisis. Equity REITs can be affected by any changes in the value of the properties owned. A REIT’s performance depends on the types and locations of the properties it owns and on how well it manages those properties or loan financings. A decline in rental income could occur because of extended vacancies, increased competition from other properties, tenants’ failure to pay rent, or poor management. A REIT’s performance also depends on the ability to finance property purchases and renovations and manage its cash flows. Because REITs are typically invested in a limited number of projects or in a particular market segment, they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. Loss of status as a qualified REIT or changes in the treatment of REITs under the federal tax law could adversely affect the value of a particular REIT or the market for REITs as a whole.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Portfolio Turnover

The fund may engage in a significant number of short-term transactions, which may adversely affect fund performance. Increased turnover results in higher brokerage costs or mark-up charges for the fund. The fund ultimately passes these costs on to shareholders. Short-term trading may also result in short-term capital gains, which are taxed as ordinary income to shareholders.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

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-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

-Non-Diversification

Focusing investments in a small number of issuers, industries or foreign currencies increases risk. Because the fund is non-diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified fund might be.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the S&P Developed Property Index (formerly S&P/Citigroup World Property Index), a widely recognized, unmanaged index of market performance that measures the performance of companies worldwide that derive more than 60% of their sales from property or real-estates related activities. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		3/31/2006		15.16	%
Worst Quarter:		12/31/2008		(29.19)	%

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  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(41.43)%		(5.71)%
Return after taxes on distributions3	(41.47)%		(8.25)%
Return after taxes on distributions and sale of fund shares3	(26.92)%		(4.76)%
S&P Developed Property Index (reflects no deduction for fees, expenses, or taxes)	(47.60)%		(9.82)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.79%
Distribution and service (12b-1) fees	N/A
Other expenses	0.10%
Total annual fund operating expenses	0.89%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	91	$	284	$	493	$	1,096

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.80%
Over $250 million up to $500 million	0.775%
Over $500 million up to $1 billion	0.70%
Over $1 billion	0.65%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.79% of the fund’s average daily net assets.

Sub-Adviser:

ING Clarion Real Estate Securities, L.P. (“Clarion”)

201 King of Prussia Road, Suite 600

Radnor, Pennsylvania 19087

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.40%
Over $250 million up to $500 million	0.375%
Over $500 million up to $1 billion	0.35%
Over $1 billion	0.30%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

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Transamerica Clarion Global Real Estate Securities

Portfolio Managers:

T. Ritson Ferguson, CFA, Joseph P. Smith, CFA and Steven D. Burton, CFA, serve as co-managers of this fund.

T. Ritson Ferguson, CFA, Chief Investment Officer (“CIO”) and Portfolio Manager, has 24 years of real estate investment experience. Mr. Ferguson has served as Co-CIO and more recently CIO of Clarion since 1991.

Joseph P. Smith, CFA, Managing Director and Portfolio Manager, is a member of the Investment Policy Committee. Mr. Smith joined Clarion in 1997 and has 18 years of real estate investment management experience.

Steven D. Burton, CFA, Managing Director and Portfolio Manager, is a member of Clarion’s Investment Committee. He is also responsible for evaluating the investment potential of public real estate companies outside the U.S. Mr. Burton joined Clarion in 1995 and has 24 years of real estate investment management experience.

The sub-adviser and its predecessors have provided investment advisory services to various clients since 1969.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Transamerica Evergreen Health Care

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Evergreen Health Care is to seek long-term capital appreciation.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Evergreen Investment Management Company, LLC (“Evergreen”), seeks to achieve this objective by investing, under normal circumstances, at least 80% of the fund’s net assets in the equity securities of “health care companies.” A company is generally deemed to be a “health care company” if it develops, produces or distributes products or services related to the health care or medical industries and derives a substantial portion (i.e., more than 50%) of its revenue from products and services in health care. These include, but are not limited to, pharmaceutical companies, biotechnology companies, medical device and supply companies, managed care companies and health care information and service providers. The fund may invest in securities of relatively well-known and large companies as well as small- and medium-sized companies. In choosing the best companies to invest in, Evergreen looks for strong management, growing product lines, leading technology, franchise niche, and a strong balance sheet, which may transform into high return on equity and consistent high earnings growth. Stocks are selected based on both Evergreen’s estimate of their fundamental investment value and their relative attractiveness compared to their business competitors. Evergreen generally does not take portfolio turnover into account in making investment decisions. This means that the fund could have a high portfolio turnover (100% or more) in any fiscal year.

The fund may invest in securities of both domestic and foreign issuers. There is no limit to the amount the fund may invest in foreign securities.

The fund may invest in futures and options, which are forms of derivatives. Such practices may be used for any purpose, including to hedge the fund’s portfolio to protect against market decline, to maintain the fund’s exposure to its market, to manage cash or to attempt to increase income. In addition, the fund may also engage in short sales of securities for any purpose, including to hedge the fund’s portfolio, to protect against market decline, to maintain the fund’s exposure to its market, to manage cash or to attempt to increase income.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

This fund is non-diversified.

What is a Non-Diversified Fund?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the fund generally may not have more than 25% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investments in the fund will go up and down.

-Health Care Sector

To the extent the fund invests a significant portion of its assets in one or more economic sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the sectors or industries than if the fund always maintained wide diversity among the sectors and industries in which it invests.

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Transamerica Evergreen Health Care

Health care companies are strongly affected by worldwide scientific or technological developments. Their products may rapidly become obsolete and are also often dependent on the developer’s ability to receive patents from regulatory agencies and then to enforce them in the market. A health care company’s valuation can often be based largely on the potential or actual performance of a limited number of products. A health care company’s valuation can be greatly affected if one of its products proves unsafe, ineffective or unprofitable. Many health care companies are also subject to significant government regulation and may be affected by changes in governmental policies. As a result, investments in health care companies include the risk that the economic prospects, and the share prices, of such companies generally can fluctuate dramatically due to changes in the regulatory or competitive environments.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

-Short Sales

A short sale may be effected by selling a security that the fund does not own. In order to deliver the security to the purchaser, the fund borrows the security, typically from a broker/dealer or an institutional investor. The fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the fund would incur a loss; conversely, if the price declines, the fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the fund held only long positions. The fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.

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Transamerica Evergreen Health Care

A short sale may also be effected “against the box” if, at all times when the short position is open, the fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the fund would forego the potential realization of the increased value of the shares sold short.

-Non-Diversification

Focusing investments in a small number of issuers, industries or foreign currencies increases risk. Because the fund is non-diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified fund might be.

-Portfolio Turnover

The fund may engage in a significant number of short-term transactions, which may adversely affect fund performance. Increased turnover results in higher brokerage costs or mark-up charges for the fund. The fund ultimately passes these costs on to shareholders. Short-term trading may also result in short-term capital gains, which are taxed as ordinary income to shareholders.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I performance has varied from year to year and how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Standard & Poor’s 1500 Super Composite Health Care Index (“S&P 1500 Health Care Index”), a widely recognized, unmanaged, index that tracks the performance of health care stocks within the S&P 500, the S&P Midcap 400 and the S&P 600 Indexes. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2005		10.59	%
Worst Quarter:		12/31/2008		(21.53)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(30.62)%		0.91%
Return after taxes on distributions3	(30.72)%		(0.62)%
Return after taxes on distributions and sale of fund shares3	(19.91)%		0.50%
S&P 1500 Health Care Index (reflects no deduction for fees, expenses, or taxes)	(23.76)%		0.06%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 8, 2004.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Note: Prior to March 1, 2006, a different sub-adviser managed this fund, and it had a different investment objective and used different investment strategies. The performance set forth prior to that date is attributable to the previous sub-adviser.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.85%
Distribution and service (12b-1) fees	N/A
Other expenses	0.05%
Total annual fund operating expenses	0.90%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

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Transamerica Evergreen Health Care

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	92	$	287	$	498	$	1,108

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $100 million	0.87%
Over $100 million up to $250 million	0.85%
Over $250 million	0.80%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.85% of the fund’s average daily net assets.

Sub-Adviser:

Evergreen Investment Management Company, LLC (“Evergreen”)

200 Berkeley Street

Boston, Massachusetts 02116-5034

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $100 million	0.42%
Over $100 million up to $250 million	0.40%
Over $250 million	0.35%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

Robert Junkin is Managing Director and Senior Portfolio Manager of the Evergreen Health Care Fund in Evergreen’s Equity Management group and Managing Director and Senior Portfolio Manager of Evergreen’s Small-Mid Cap Growth team. He has been with Evergreen since 2007. Previously, Mr. Junkin served as a Vice President and Portfolio Manager with MFC Global Investment Management where he was responsible for the John Hancock Health Sciences Fund (2005-2007), and a co-manager for the Large Cap Equity Portfolio (2003-2007). Additionally, he served as a Vice President and Portfolio Manager with Pioneer Investments on large- and mid-cap growth funds (1997-2002). Mr. Junkin spent several years as a Senior Research Analyst with ABN Amro and Mabon Securities covering the medical technology and health services industries. Mr. Junkin also has direct industry experience with the biotechnology firm Elan Pharma where he served as a Finance Manager from 1991-1992. He began his career at Price Waterhouse in 1988 and has been working in the investment industry since 1992. He received a B.A. in economics from the University of Pennsylvania and an M.S. in accounting from Northeastern University.

Evergreen has provided investment advisory services to various clients for more than 70 years.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

81

Transamerica Blackrock Natural Resources

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica BlackRock Natural Resources is to achieve long-term capital growth and to protect the purchasing power of shareholders’ capital by investing in a portfolio of equity securities of domestic and foreign companies with substantial natural resource assets.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, BlackRock Investment Management, LLC (“BlackRock”), seeks to achieve this objective by investing principally in equity securities of U.S. and non-U.S. companies with substantial natural resource assets.

Under normal circumstances, the fund will invest at least 80% of its net assets in equities of companies with substantial natural resource assets, or in securities the value of which is related to the market value of some natural resource asset. Generally, a company has substantial natural resource assets when at least 50% of the non-current assets, capitalization, gross revenues or operating profits of the company in the most recent or current fiscal year are involved in or result from (directly or indirectly through subsidiaries) exploring, mining, refining, processing, fabricating, dealing in or owing natural resource assets. Companies’ values are related to the market value of a natural resource asset when, in the opinion of management, the company’s market value or profitability is significantly affected by changes in the value of a natural resource. Examples of natural resource assets include precious metals (e.g., gold, silver and platinum), ferrous and nonferrous metals (e.g., iron, aluminum and copper), strategic metals (e.g., uranium and titanium), water, hydrocarbons (e.g., coal, oil and natural gas), timber, land, underdeveloped real property, and agricultural commodities.

The fund may invest in both U.S. and non-U.S. companies of any market capitalization, including companies located in emerging markets, and in securities denominated in both U.S. dollars and foreign currencies.

The fund uses a combination of “top-down” and “bottom-up” investment analysis. With a “top-down” analysis, BlackRock seeks to allocate investments to natural resource-related economic sectors that it believes have more favorable pricing power than other sectors. In a “bottom-up” analysis, BlackRock also selects investments based on its assessment of the management quality and earning prospects of individual companies. When assessing individual companies, BlackRock looks for companies that it believes are relatively undervalued.

What is a “Top-Down” Approach?

When using a “top-down” approach, the fund manager looks first at broad market factors, and on the basis of those market factors, chooses certain sectors, or industries within the overall market. The manager then looks at individual companies within those sectors or industries.

A company’s stock is undervalued when the stock’s current price is less than what BlackRock believes a share of the company is worth. A company’s worth can be assessed by several factors, such as financial resources, value of tangible assets, rate of return on capital, quality of management, and overall business prospects. A company’s stock may become undervalued when most investors fail to perceive the company’s strengths in one or more of these areas. BlackRock may also determine a company is undervalued if its stock price is depressed due to setbacks from which BlackRock believes the company will recover. BlackRock attempts to identify companies that are undervalued based on relative price-earnings, price-to-book, and price-to-cash-flow ratios. In seeking to identify such companies, BlackRock considers which of the companies that meet its criteria would be most likely to benefit from the economic circumstances anticipated by BlackRock.

What is a “Bottom-Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broad market factors. It seeks to identify individual companies with earnings growth potential that may not be recognized by the market at large.

The fund will invest in common stock, preferred stock, securities convertible into common stock, rights to subscribe for common stock, and derivative securities or instruments, such as options, the value of which is based on a common stock or group of common stocks or other asset. The fund also may invest in futures contracts and other derivative instruments to help manage the risk of investing in companies with substantial natural resource assets.

In addition, the fund may use derivatives to hedge its portfolio against market and currency risks or to seek to enhance returns. The derivatives that the fund may use include indexed and inverse securities, options on portfolio positions or currencies, financial and currency futures, options on such futures, forward foreign currency transactions and swaps.

The fund may invest in asset-based securities. These are fixed-income securities whose principal amount, redemption terms or conversion terms are related to the market price of some natural resource asset, such as gold bullion. The fund will only purchase asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated, investment grade or are issued by issuers that BlackRock has determined to be of similar creditworthiness. The fund also may invest in asset-based securities the potential return of which is based on the change in a specified commodity price. The fund may, for example, invest in a debt security that pays a variable amount of interest or principal based on the current level of a natural resource commodity, such as gold or oil.

The fund is non-diversified, and may focus its investments in one or more natural resource-related sectors.

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Transamerica Blackrock Natural Resources

What is a Non-Diversified Fund?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the fund generally may not have more than 25% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market securities. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Asset-Based Securities — Natural Resources

Asset-based securities include fixed income securities whose value is related to the market price of a certain natural resource, such as a precious metal. Although the market price of these securities is expected to follow the market price of the related resource, there may not be perfect correlation. There are special risks associated with certain types of natural resource assets that will also affect the value of asset-based securities related to those assets. For example, precious metal prices historically have been very volatile, which may adversely affect the financial condition of companies involved with precious metals. The production and sale of precious metals by governments or central banks or other larger holders can be affected by various economic, financial, social and political factors, which may be unpredictable and may have a significant impact on the prices of precious metals. Other factors that may affect the prices of precious metals and securities related to them include changes in inflation, the outlook for inflation and changes in industrial and commercial demand for precious metals.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging

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Transamerica Blackrock Natural Resources

markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Small-or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Leveraging

When the fund engages in transactions that have a leveraging effect on the fund’s portfolio, the value of the fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the fund would otherwise have. The fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause the fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

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Transamerica Blackrock Natural Resources

-Country, Sector or Industry Focus

To the extent the fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the single country, sector or industry than if the fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, natural resources industries can be significantly affected by events relating to international political developments, natural disasters, energy conservation, the success of exploration projects, commodity prices, and tax and government regulations. At times, the performance of securities of companies in the energy and other natural resources industry will lag the performance of other industries or the broader market as a whole.

-Non-Diversification

Focusing investments in a small number of issuers or industries increases risk. Because the fund is non-diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified fund might be.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Morgan Stanley Capital International Natural Resources Index (“MSCINR Index”), a widely recognized, unmanaged index of equity securities of companies engaging in the natural resources industry. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

  Year-by-Year Total Return as of 12/31 (%)

Class I Shares

2007

2008

Class I Shares	Quarter Ended		Return
Best Quarter:		6/30/2008		21.57	%
Worst Quarter:		12/31/2008		(34.42)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(48.47)%		(14.97)%
Return after taxes on distributions3	(48.52)%		(15.21)%
Return after taxes on distributions and sale of fund shares3	(31.45)%		(12.63)%
MSCINR Index (reflects no deduction for fees, expenses, or taxes)	(40.97)%		(12.05)%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.

²  Class I commenced operations on January 3, 2007.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.80%
Distribution and service (12b-1) fees	N/A
Other expenses	0.06%
Total annual fund operating expenses	0.86%
Expense reductionb	0.00%
Net operating expenses	0.86%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010 to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.00% of average daily net assets (excluding certain extraordinary expenses). TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.00% of average daily net assets (excluding certain extraordinary expenses).

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating

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Transamerica Blackrock Natural Resources

expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	88	$	274	$	477	$	1,061

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets:
First $250 million	0.80%
Over $250 million up to $500 million	0.775%
Over $500 million	0.75%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.80% of the fund’s average daily net assets.

Sub-Adviser:

BlackRock Investment Management, LLC (“BlackRock”)

800 Scudders Mill Road

Plainsboro, NJ 08536

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.40%
Over $250 million up to $500 million	0.375%
Over $500 million	0.35%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

Robert Shearer, CFA, serves as portfolio manager of this fund. Mr. Shearer is Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2000 to 2006; First Vice President of MLIM from 1998 to 2000; and Vice President of MLIM from 1997 to 1998.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of fund shares.

86

Transamerica Federated Market Opportunity

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Federated Market Opportunity is to provide moderate capital appreciation and high current income.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Federated Equity Management Company of Pennsylvania (“Federated”), pursues this investment objective by investing, under normal market conditions, in domestic and foreign securities that Federated deems to be undervalued or out-of-favor or securities that Federated believes are attractive due to their income-producing potential. As more fully described below, the fund’s investments may include, but are not limited to, the following: equity securities of domestic and foreign issuers (including American Depositary Receipts (“ADRs”)), fixed-income securities of both domestic and foreign issuers or sovereign governmental entities, REITS, securities of precious metal companies and derivative and hybrid instruments. This investment strategy is designed to enable the fund to pursue its investment objective (to provide moderate capital appreciation and high current income) while attempting to limit volatility.

Federated’s investment management approach may be described as contrarian in nature because the sub-adviser anticipates that it will invest in out-of-favor securities or deviate from the consensus view on markets in general, a sector, or individual securities.

The fund’s asset allocation is based on valuation, sentiment, and technical considerations. The fund generally will favor asset categories that are undervalued relative to historical norms, as well as those which are out of favor based on market sentiment measures, and assets which have lagged other categories or declined sharply in price. The assumption is that valuations, sentiment, and prices will return to normal relationships, or “revert to the mean.”

With regard to equity securities, Federated primarily uses the “value” style of investing and selects securities primarily utilizing a bottom-up approach to security analysis but also secondarily considers top-down analysis and sector allocation. Federated does not generally consider the composition of market indices in its selection of equity securities. Federated’s use of the “value” style of investing seeks to identify and select securities that, in Federated’s opinion, are trading at a lower valuation relative to one of the following two measurements: (i) the historic valuation of the securities; or (ii) valuations of the issuer’s industry peers. Historically, undervalued securities have generally had lower share price volatility, and a higher yield, when compared with other equity securities.

Primarily using the bottom-up approach to security analysis, Federated searches for equity securities that appear to be undervalued or out-of-favor with share prices that have lagged the market and demonstrated an ability to maintain their value when the broad equity market is weak. Additionally, Federated seeks to invest in companies that have skilled management with a shareholder orientation and that appear to be financially strong.

As a secondary matter, using top-down analysis, Federated considers current economic, financial market, and industry factors and societal trends that may affect the issuing company. Lastly, Federated assembles a portfolio of securities by considering sector allocations. Sectors are broad categories of companies with similar characteristics. Federated determines the sector allocation of the fund’s portfolio primarily based upon its opinion as to which sectors are, as a whole, priced at a low market valuation when compared with other sectors, and which are currently out of favor. Federated also considers such factors as the dividend-paying potential of the companies in each sector.

Federated uses technical analysis of the market as an aid in timing purchases and sales. Federated sells a portfolio security if it determines that the issuer does not continue to meet its stock selection criteria.

Federated may increase the fund’s cash position if Federated is unable to find a sufficient number of securities that Federated deems to be undervalued or out-of-favor or if Federated believes that overall equity market valuations (and risks) are at high levels. Additionally, Federated anticipates normally keeping a portion of the fund’s portfolio in cash in order to readily take advantage of buying opportunities, to increase current income or in an effort to preserve capital. The fund’s cash position will normally be invested in traditional cash investments such as money market funds, U.S. Treasury Bills or repurchase agreements.

When investing in fixed-income securities, Federated invests in asset classes within the fixed-income market that it believes offer the best relative value. When searching for asset classes within the fixed-income market, Federated places an emphasis on historical yield spreads and investing contrary to prevailing market sentiment with regard to an asset class. With regard to non-dollar denominated fixed-income securities, Federated also considers the currency appreciation potential of a given market. Such asset classes may include non-investment-grade fixed-income securities, emerging market debt and foreign non-dollar denominated fixed-income securities issued by foreign governmental entities or corporations, as well as U.S. Treasury securities and other investment-grade securities.

In addition to investing in equity and fixed-income securities, the fund may invest in the following in attempting to achieve its investment objective:

-   derivative contracts or hybrid instruments, including options on indices, individual securities, futures (including financial and index futures) and currencies (both foreign and U.S. dollar),

-   foreign forward currency contracts, convertible bonds,

-   REITS, and

-   securities of companies engaged in the exploration, mining and distribution of gold, silver and other precious metals.

The fund may also purchase shares of exchange-traded funds (“ETFs”) in order to achieve exposure to a specific region, country, commodity or market sector, or for other reasons consistent with its investment strategy.

The fund may invest in derivative contracts, such as swaps, options and futures contracts, to efficiently implement its overall investment strategies. The following examples illustrate some, but not all, of the specific ways in which the fund may use derivatives or hybrid instruments. First, the fund may invest in a hybrid

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Transamerica Federated Market Opportunity

instrument which is structured as a note that pays a fixed dividend and at maturity either converts into shares of an equity security or returns a payment to the fund based on the change in value of an underlying equity security. Second, the fund may buy or sell derivative contracts (such as call or put options), in anticipation of an increase or decrease in the market value of individual securities, currencies or indices (including both securities and volatility indices). Third, the fund may invest in hybrid instruments which are structured as interest-bearing notes whose amount paid at maturity is determined by the price of an underlying commodity or by the performance of a commodity index. Such commodities may include precious metals (e.g., gold, silver), industrial metals, (e.g., copper, nickel), agricultural and livestock commodities (e.g., wheat, pork), and energy related commodities (e.g., crude oil and natural gas). Finally, the fund may invest in derivatives contracts as part of its hedging strategies. For example, the fund may use derivative contracts and/or hybrid instruments to increase or decrease the allocation of the portfolio to securities, currencies or types of securities in which the fund may invest directly. The fund may also, for example, use derivative contracts to:

-   obtain premiums from the sale of derivative contracts (e.g., write a put option on a security);

-   realize gains from trading a derivative contract; or

-   hedge against potential losses. For example, the fund may buy put options on stock indices or individual stocks (even if the stocks are not held by the fund) in an attempt to hedge against a decline in stock price.

There can be no assurance that the fund’s use of derivative contracts or hybrid instruments will work as intended.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies or otherwise holds a foreign currency, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

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-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-High-Yield Debt Securities

High yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High yield securities are not generally meant for short-term investing.

-Country, Sector or Industry Focus

To the extent the fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the single country, sector or industry than if the fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, technology companies involve risks due to factors such as the rapid pace of product change, technological developments and new competition. Their stocks historically have been volatile in price, especially over the short term, often without regard to the merits of individual companies. Banks and financial institutions are subject to potentially restrictive governmental controls and regulations that may limit or adversely affect profitability and share price. In addition, securities in that sector may be very sensitive to interest rate changes throughout the world.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-REITS

Real estate markets have been particularly affected by the financial crisis. Equity REITs can be affected by any changes in the value of the properties owned. A REIT’s performance depends on the types and locations of the properties it owns and on how well it manages those properties or loan financings. A decline in rental income could occur because of extended vacancies, increased competition from other properties, tenants’ failure to pay rent or poor management. A REIT’s performance also depends on the company’s ability to finance property purchases and renovations and manage its cash flows. Because REITs are typically invested in a limited number of projects or in a particular market segment, they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. Loss of status as a

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qualified REIT or changes in the treatment of REITs under the federal tax law, could adversely affect the value of a particular REIT or the market for REITs as a whole.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

-Hybrid Instruments

Hybrid instruments combine elements of derivative contracts with those of another security (typically a fixed-income security). All or a portion of the interest or principal payable on a hybrid security is determined by reference to changes in the price of an underlying asset or by reference to another benchmark (such as interest rates, currency exchange rates or indices). Hybrid instruments also include convertible securities with conversion terms related to an underlying asset or benchmark. The risks of investing in hybrid instruments may reflect a combination of the risks of investing in securities, commodities, options, futures, and currencies. Thus, an investment in a hybrid instrument may entail significant risks in addition to those associated with traditional fixed-income or convertible securities. Hybrid instruments are also potentially more volatile and may carry greater interest rate risks than traditional instruments. Moreover, depending on the structure of the particular hybrid, it may expose the fund to leverage risks or carry liquidity risks.

-Commodities

Because the fund may invest in instruments whose performance is linked to the price of an underlying commodity or commodity index, the fund may be subject to the risks of investing in physical commodities. These types of risks include regulatory, economic and political developments, weather events and natural disasters, pestilence, market disruptions and the fact that commodity prices may have greater volatility than investments in traditional securities.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

-Leveraging

When the fund engages in transactions that have a leveraging effect on the fund’s portfolio, the value of the fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the fund would otherwise have. The fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause the fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Investment Companies

To the extent that the fund invests in other investment companies such as ETFs, it bears its pro rata share of these investment companies’ expenses, and is subject to the effects of the business and regulatory developments that affect these investment companies and the investment company industry generally.

-Exchange Traded Funds

An investment in an ETF generally presents the same primary risks as an investment in a conventional investment company (i.e., one that is not exchange-traded) that has the same investment objectives, strategies and policies. The price of an ETF can fluctuate up and down, and the fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs are subject to the following risks that do not apply to conventional funds: (i) the market price of an ETF’s shares may trade above or below their net asset value; (ii) an active trading market for an ETF’s shares may not develop or be maintained; or (iii) trading of an ETF’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.

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-Portfolio Turnover

The fund may engage in a significant number of short-term transactions, which may adversely affect the fund performance. Increased turnover results in higher brokerage costs or mark-up charges for the fund. The fund ultimately passes these costs on to shareholders. Short-term trading may also result in short-term capital gains, which are taxed as ordinary income to shareholders.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 3000 ^® Value Index, which measures the performance of those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values, and the Merrill Lynch 3-Month Treasury Bill Index (“ML 3-Month T-Bill Index”) (secondary), which measures returns of three-month treasury bills. Each index is a widely recognized, unmanaged index of market performance. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		3/31/2008		4.17	%
Worst Quarter:		12/31/2008		(5.23)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(2.06)%		(0.65)%
Return after taxes on distribution3	(3.97)%		(1.86)%
Return after taxes on distributions and sale of fund shares3	(0.73)%		(1.10)%
Russell 3000® Value Index (reflects no deduction for fees, expenses, or taxes)	(36.25)%		(8.27)%
ML 3-Month T-Bill Index (secondary) (reflects no deduction for fees, expenses, or taxes	2.06%		3.96%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I shares commenced operations on December 6, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.79%
Distribution and service (12b-1) fees	N/A
Other expenses	0.09%
Total annual fund operating expenses	0.88%
Expense reductionb	0.00%
Net operating expenses	0.88%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.05% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.05% of average daily net assets, excluding certain extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

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EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	90	$	281	$	488	$	1,084

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $30 million	0.85%
Over $30 million up to $50 million	0.80%
Over $50 million up to $500 million	0.70%
Over $500 million up to $750 million	0.675%
Over $750 million	0.65%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.79% of the fund’s average daily net assets.

Sub-Adviser:

Federated Equity Management Company of Pennsylvania (“Federated”)

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $30 million	0.50%
Over $30 million up to $50 million	0.35%
Over $50 million up to $500 million	0.25%
Over $500 million up to $750 million	0.225%
Over $750 million	0.20%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Steven J. Lehman, CFA, has been the fund’s Senior Portfolio Manager since inception. Mr. Lehman joined Federated in May 1997 as a Portfolio Manager and Vice President. He has been a Senior Portfolio Manager since 1998 and a Senior Vice President at Federated since 2005. From 1986 to May 1997, Mr. Lehman served as a Portfolio Manager, then Vice President/Senior Portfolio Manager, at First Chicago NBD. Mr. Lehman received his M.A. from the University of Chicago and B.A. from Ripon College.

Dana L. Meissner, CFA, has been the fund’s Portfolio Manager since March 1, 2009. He and Mr. Lehman are jointly responsible for the day-to-day management of the fund. Mr. Meissner, a Vice President at Federated, joined Federated in May 2000 as an Investment Analyst. He became a Senior Investment Analyst and Assistant Vice President at Federated in 2003. Mr. Meissner is a member of the CFA Society of Pittsburgh. He received his MSIA from Carnegie Mellon University and M.S. and B.S. in Engineering from the University of Toledo.

Federated Investors, Inc. has provided investment advisory services to various clients since 1955.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Transamerica Convertible Securities

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Convertible Securities is to seek maximum total return through a combination of current income and capital appreciation.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve this objective by investing principally in:

-   convertible securities

In seeking its investment objective, TIM will normally invest at least 80% of net assets in convertible securities, which are across the credit spectrum and perform more like a stock when the underlying share price is high relative to the conversion price and more like a bond when the underlying share price is low relative to the conversion price. TIM may also invest the fund’s assets in other types of securities, including common stock.

TIM may invest the fund’s assets in securities of foreign issuers in addition to securities of domestic issuers.

In buying and selling securities for the fund, TIM relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, industry position, and economic market conditions. Factors considered include growth potential, earnings estimates, and quality of management.

TIM may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund’s exposure to changing security prices or other factors that affect security values.

The fund may also invest in other securities and investment strategies in pursuit of its investment objective.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at

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reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I performance has varied from year to year, and how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Merrill Lynch All U.S. Convertibles Index (“MLUSCI’’), a widely recognized, unmanaged index of market performance that is a market capitalization-weighted index of domestic corporate convertible securities that are convertible to common stock only. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

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Transamerica Convertible Securities

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2007		7.67	%
Worst Quarter:		12/31/2008		(17.42)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(35.62)%		(4.48)%
Return after taxes on distributions3	(36.12)%		(6.61)%
Return after taxes on distributions and sale of fund shares3	(23.09)%		(3.79)%
MLUSCI (reflects no deduction for fees, expenses, or taxes)	(35.74)%		(7.93)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.75%
Distribution and service (12b-1) fees	N/A
Other expenses	0.09%
Total annual fund operating expenses	0.84%
Expense reductionb	0.00%
Net operating expenses	0.84%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.35% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.35% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	86	$	268	$	466	$	1,037

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.75%
Over $250 million	0.70%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.75% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.35% of the fund’s average daily net assets, less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

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Transamerica Convertible Securities

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Kirk J. Kim

Portfolio Manager (lead)

Kirk J. Kim is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. He holds a B.S. in Finance from the University of Southern California. Mr. Kim has 13 years of investment experience.

Peter O. Lopez

Portfolio Manager (lead)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Transamerica Science & Technology

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Science & Technology is long-term growth of capital.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve this objective by investing, under normal circumstances, at least 80% of its net assets in common stocks of companies that are expected to benefit from the development, advancement and use of science and technology. These companies may include, without limitation, companies that develop, produce or distribute products or services in the computer, semi-conductor, software, electronics, media, communications, health care, and biotechnology sectors.

In choosing securities, the portfolio managers take a fundamental and research driven approach to investing in growth stocks. The fund generally invests in companies that rely extensively on technology in their product development or operations and have benefited from technological progress in their operating history or have enabled such progress in others, with a particular focus on companies in developing segments of the sector.

The portfolio managers seek to identify the companies best positioned to benefit from change; generally those with superior business models, proven management teams and businesses that are producing substantial cash flow. Critical to the investment process is the identification of companies exhibiting the highest growth potential at the most attractive prices/valuations. TIM seeks to pay a fair price relative to a company’s intrinsic business value and/or projected growth rate or relative to alternative investments within an industry.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

This fund is non-diversified.

What is a Non-Diversified Fund?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the fund generally may not have more than 25% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

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Transamerica Science & Technology

-Science and Technology Stocks

Securities of science and technology companies are strongly affected by worldwide scientific and technological developments and governmental policies, and, therefore, are generally dependent upon or associated with scientific and technological issues. The entire value of the fund may decrease if technology-related industries decline. Further, the prices of many science and technology companies have experienced considerable volatility in the past and may do so in the future.

-Health Care Sector

To the extent the fund invests a significant portion of its assets in one or more economic sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the sectors or industries than if the fund always maintained wide diversity among the sectors and industries in which it invests.

Health care companies are strongly affected by worldwide scientific or technological developments. Their products may rapidly become obsolete and are also often dependent on the developer’s ability to receive patents from regulatory agencies and then to enforce them in the market. A health care company’s valuation can often be based largely on the potential or actual performance of a limited number of products. A health care company’s valuation can be greatly affected if one of its products proves unsafe, ineffective or unprofitable. Many health care companies are also subject to significant government regulation and may be affected by changes in governmental policies. As a result, investments in the health and biotechnology segments include the risk that the economic prospects, and the share prices, of health and biotechnology companies can fluctuate dramatically due to changes in the regulatory or competitive environments.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Non-Diversification

Focusing investments in a small number of issuers, industries or foreign currencies increases risk. Because the fund is non-diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified fund might be.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Dow Jones U.S. Technology Index, a widely recognized, unmanaged index of market performance that measures the performance of the technology sector of the U.S. equity market. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		6/30/2007		11.44	%
Worst Quarter:		12/31/2008		(25.98)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year			Life of Class2
Return before taxes		(48.94)	%		(10.85)	%
Return after taxes on distributions3		(48.94)	%		(11.05)	%
Return after taxes on distributions and sale of fund shares3		(31.81)	%		(8.91)	%
Dow Jones U.S. Technology Index (reflects no deduction for fees, expenses, or taxes)		(42.85)	%		(9.57)	%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Note: Prior to August 1, 2006, a different sub-adviser managed this fund, and it used different investment strategies. The performance set forth prior to that date is attributable to the previous sub-adviser.

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Transamerica Science & Technology

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and held shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.78%
Distribution and service (12b-1) fees	N/A
Other expenses	0.13%
Total annual fund operating expenses	0.91%
Expense reductionb	0.00%
Net operating expenses	0.91%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.18% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.18% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	93	$	290	$	504	$	1,120

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $500 million	0.78%
Over $500 million	0.70%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.78% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, CA 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.35%
Over $250 million up to $500 million	0.30%
Over $500 million	0.25%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Kirk J. Kim

Portfolio Manager (lead)

Kirk J. Kim is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. He holds a B.S. in finance from the University of Southern California. Mr. Kim has 13 years of investment experience.

Jeffrey J. Hoo, CFA

Portfolio Manager (co)

Jeffrey J. Hoo is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Microcap Equity discipline. Mr. Hoo’s analytical responsibilities include the healthcare sector and industries within the Consumer Discretionary sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Hoo worked at Sony Pictures Entertainment and KPMG. He is also a past Vice President and board member of the Asian Professional Exchange of Los Angeles. Mr. Hoo earned a B.A. from Duke University and an M.B.A. from the University of California, Los Angeles. He has earned the right to use the Chartered Financial Analyst designation. Mr. Hoo has 11 years of investment experience.

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Transamerica Science & Technology

Erik U. Rollé

Portfolio Manager (co)

Erik U. Rollé is a Securities Analyst and Co-Portfolio Manager at TIM. Mr. Rollé co-manages sub-advised funds and institutional separate accounts in the Growth Equity discipline. Prior to joining TIM in 2005, Mr. Rollé worked as a Research Associate at Bradford & Marzec where his primary responsibilities were within trading and credit research. He received a B.S. in finance and a B.S. in journalism from the University of Colorado at Boulder. Mr. Rollé has 6 years of investment experience.

Joshua D. Shaskan, CFA

Portfolio Manager (co)

Joshua D. Shaskan is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Small and Small/Mid (SMID) Growth Equity disciplines. He joined TIM in 2005 when the firm acquired Westcap Investors LLC. Prior to Westcap, Mr. Shaskan served as an Investment Specialist for three years at Wells Fargo Securities and was also previously a Financial Advisor at Prudential Securities. He earned a B.A. from the University of California, Davis, and an M.B.A. from the University of California, Los Angeles. Mr. Shaskan has earned the right to use the Chartered Financial Analyst designation and has 16 years of investment experience.

TIM, through it’s parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Transamerica AllianceBernstein International Value

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica AllianceBernstein International Value is long-term growth of capital.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, AllianceBernstein L.P. (“AllianceBernstein”), seeks to achieve this objective by investing primarily in equity securities of established companies selected from a variety of industries and developed countries. Under normal market conditions, the fund will primarily invest in issuers that are economically tied to a number of countries throughout the world and expects to be invested in more than three different foreign countries. An issuer generally will be deemed to be economically tied to the country (or countries) in which the issuer has at least 50% of its assets or from which it derives at least 50% of its revenues or profits, or in whose securities markets its securities principally trade. The fund’s investment policies emphasize investment in companies that are determined by AllianceBernstein to be undervalued, using a fundamental value approach. Investment decisions are the result of the multi-step process described below.

AllianceBernstein’s fundamental value approach to equity investing generally defines value by reference to the relationship between a security’s current price and its intrinsic economic value, as measured by long-term earnings prospects. In each market, this approach seeks to identify, in the first instance, a universe of securities that are considered to be undervalued because they are attractively priced relative to their future earnings power. Accordingly, forecasting corporate earnings and dividend-paying capability is the heart of the fundamental value approach.

AllianceBernstein’s staff of company and industry analysts prepares its own earnings estimates and financial models for each company analyzed. AllianceBernstein identifies and quantifies the critical variables that control a business’s performance and analyzes the results in order to forecast each company’s long-term prospects and expected returns. A company’s financial performance is typically projected over a full economic cycle, including a trough and a peak, within the context of forecasts for real economic growth, inflation and interest rate changes. As a result, forecasts of near term economic events are generally not of major consequence.

Once AllianceBernstein has applied its fundamental analysis to determine the intrinsic economic values of each of the companies in its research universe, each company is then ranked in the order of disparity between its intrinsic economic value and its stock price, with companies having the greatest disparities receiving the highest rankings (i.e., being considered the most undervalued).

The fund does not simply purchase the top-ranked securities. Rather, AllianceBernstein considers aggregate portfolio characteristics when deciding how much of each security to purchase for the fund. AllianceBernstein’s team of quantitative analysts builds valuation and risk models to seek a portfolio that is constructed to obtain an effective balance of risk and return.

In order to reduce the risk that an undervalued security will be purchased before an adverse event, AllianceBernstein also monitors analysts’ earnings-estimate revisions and relative return trends (also called “momentum”) so as to better time new purchases and sales of securities.

Currencies can have a dramatic impact on equity returns, significantly adding to returns in some years and greatly diminishing them in others. Consequently, currency and equity positions are evaluated separately. In addition, AllianceBernstein may seek to hedge a currency exposure resulting from securities positions when it finds the currency exposure unattractive.

A security generally will be sold when it no longer meets appropriate valuation criteria. Sale of a stock that has reached its target may be delayed, however, when earnings expectations and/or momentum are favorable.

The fund also may:

-   Invest in depositary receipts, instruments of supranational entities denominated in the currency of any country, securities of multinational companies and “semi-governmental securities”;

-   Invest up to 20% of its total assets in convertible securities;

-   Invest up to 15% of its net assets in illiquid securities;

-   Invest up to 10% of its total assets in rights and warrants (including but not limited to participation notes);

-   Enter into derivatives contracts including forward commitments, futures contracts and options on futures contracts with respect to securities, indices and currencies;

-   Enter into contracts for the purchase and sale for the future delivery of contracts based on financial indices;

-   Enter into currency swaps and forward currency exchange contracts for hedging purposes;

-   Make secured loans of portfolio securities of up to one-third of its total assets; and

-   Enter into repurchase agreements.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar

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Transamerica AllianceBernstein International Value

investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Short Sales

A short sale may be effected by selling a security that the fund does not own. In order to deliver the security to the purchaser, the fund borrows the security, typically from a broker/dealer or an institutional investor. The fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the fund would incur a loss; conversely, if the price declines, the fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the fund held only long positions.

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The fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.

A short sale may also be effected “against the box” if, at all times when the short position is open, the fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the fund would forego the potential realization of the increased value of the shares sold short.

-Repurchase Agreements

Under a repurchase agreement, the seller agrees to repurchase a security at a mutually agreed-upon time and price. If the other party to a repurchase agreement defaults on its obligation, the fund may suffer delays and incur costs or lose money in exercising its rights under the agreement. If the seller fails to repurchase the security and the market value declines, the fund could lose money.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

-Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

-Securities Lending

The fund may lend securities to other financial institutions that provide cash or other securities as collateral. This involves the risk that the borrower may fail to return the securities in a timely manner or at all. As a result, the fund may lose money and there may be a delay in recovering the loaned securities. The fund could also lose money if it does not recover the securities and/or the value of the collateral falls, including the value of investments made with cash collateral. These events could trigger adverse tax consequences to the fund.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase and, conversely, to increase as interest rates decline. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Leveraging

When the fund engages in transactions that have a leveraging effect on the fund’s portfolio, the value of the fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the fund would otherwise have. The fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause the fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Morgan Stanley Capital International Europe, Australasia, and Far East Index (“MSCI-EAFE Index”), a widely recognized, unmanaged index of market performance which includes stocks traded on exchanges in Europe, Australasia, and the Far East. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

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Transamerica AllianceBernstein International Value

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		3/31/2006		12.25	%
Worst Quarter:		12/31/2008		(24.17)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(47.97)%		(9.45)%
Return after taxes on distribution3	(48.37)%		(10.36)%
Return after taxes on distributions and sale of fund shares3	(30.63)%		(7.74)%
MSCI-EAFE Index (reflects no deduction for fees, expenses, or taxes)	(43.06)%		(5.97)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I shares commenced operations on December 6, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted
from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.84%
Distribution and service (12b-1) fees	N/A
Other expenses	0.10%
Total annual fund operating expenses	0.94%
Expense reductionb	0.00%
Net operating expenses	0.94%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.13% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.13% of average daily net assets, excluding certain extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	96	$	300	$	520	$	1,155

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $200 million	0.88%
Over $200 million up to $500 million	0.81%
Over $500 million	0.77%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.84% of the fund’s average daily net assets.

Sub-Adviser:

AllianceBernstein L.P. (“AllianceBernstein”)

1345 Avenue of the Americas

New York, NY 10105

104

Transamerica AllianceBernstein International Value

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $200 million	0.45%
Over $200 million up to $500 million	0.36%
Over $500 million	0.32%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

AllianceBernstein manages this fund relying heavily on the fundamental analysis and research of AllianceBernstein’s internal research staff. No one person is principally responsible for making recommendations for the fund’s portfolio.

The following portfolio managers are those with the most significant responsibility for the day-to-day management of the fund:

Sharon E. Fay, CFA, is Chief Investment Officer — Global Value Equities. Ms. Fay joined Bernstein in 1990 as a research analyst, following the airline, lodging, trucking and retail industries, and has been Executive Vice President and Chief Investment Officer-Global Value Equities of AllianceBernstein since 2003, overseeing all portfolio management and research activities relating to cross-border and non-US value investment portfolios and chairing the Global Value Investment Policy Group. She brings to this role a range of experience in helping establish AllianceBernstein as a global player in value investing, having first successfully launched Canadian Value as the firm’s first single-market service focused outside the US. She went on to build the UK Value service, the firm’s first portfolio management and research team based outside of the US. Until January 2006, Ms. Fay was Co-CIO — European and UK Value Equities, a position she assumed with Bernstein. She also serves on AllianceBernstein’s Management Executive Committee, the group of senior professionals responsible for managing the firm, enacting key strategic initiatives and allocating resources. Between 1997 and 1999, Ms. Fay was CIO — Canadian Value Equities. Prior to that, she had been a senior portfolio manager of International Value Equities since 1995. She earned a B.A. from Brown University and an M.B.A. from Harvard Business School. Location: London.

Kevin F. Simms, CPA, is Co-Chief Investment Officer — International Value Equities; Director of Research — Global Value Equities. Mr. Simms was named co-CIO — International Value equities in 2003, which he has assumed in addition to his role as director of research — Global and International Value equities, a position he has held since 2000. As research director, he has been instrumental in implementing significant enhancements to Bernstein’s cross-border research process. Between 1998 and 2000, Mr. Simms served as director of research — Emerging Markets Value equities. He joined Bernstein in 1992 as a research analyst, and his industry coverage over the next six years included financial services, telecommunications and utilities. Before joining the firm, Mr. Simms was a certified public accountant with Price Waterhouse for three years. He earned a B.S.B.A. from Georgetown University and an M.B.A. from Harvard Business School. Location: New York.

Henry S. D’Auria, CFA, is Chief Investment Officer — Emerging Markets Value Equities and Co-Chief Investment Officer — International Value Equities. Mr. D’Auria was named co-CIO — International Value equities in 2003, adding to his responsibilities as CIO — Emerging Markets Value equities, which he assumed in 2002. Mr. D’Auria was one of the chief architects of Bernstein’s global research department, which he managed from 1998 through 2002. Over the years, he has also served as director of research — Small Cap Value equities and director of research — Emerging Markets Value equities. Mr. D’Auria joined the firm in 1991 as a research analyst covering consumer and natural-gas companies, and he later covered the financial-services industry. Before coming to Bernstein, Mr. D’Auria was a vice president and sell-side analyst at PaineWebber, specializing in restaurants, lodging and retail. He earned a B.A. from Trinity College. Location: New York.

Eric J. Franco, CFA, Senior Portfolio Manager — Value Equities, joined the firm as a senior portfolio manager for international and global value equities in 1998. His efforts focus on the firm’s quantitative and risk-control strategies within value equities. He also works extensively with international and global value clients, primarily in North America. Prior to joining Bernstein, he was an actuary in the consulting practice at Kwasha Lipton for 16 years, working with large multinationals on the design and funding of their pension and other employee benefits plans. Mr. Franco earned a B.A. in Economics from Georgetown University. Location: New York.

The sub-adviser has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

105

Transamerica Schroders International Small Cap

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Schroders International Small Cap is to seek to provide long-term capital appreciation.

Principal Strategies and Policies

­ ­

The fund invests primarily in the equity securities of smaller companies located outside the United States. Schroder Investment Management North America Inc. (“Schroders”), sub-adviser to the fund, normally invests at least 80% of the fund’s net assets, plus any borrowings for investment purposes, in small-capitalization companies (generally those with market capitalizations, based on the number of shares readily available in the market, of $4 billion or less at the time of investment) that it believes offer the potential for capital appreciation.

Schroders employs a fundamental investment approach that considers macroeconomic factors while focusing primarily on company-specific factors. These company-specific factors include the company’s potential for long-term growth, financial condition, quality of management, and sensitivity to cyclical factors, as well as the relative value of the company’s securities compared with those of other companies and the market as a whole. In selecting investments for the fund, Schroders considers, among other things, whether a company is likely to have above-average earnings growth, whether its securities are attractively valued, and whether the company has any proprietary advantages. Schroders generally sells a security when its market price approaches the sub-adviser’s estimate of fair value or when the sub-adviser identifies a significantly more attractive investment candidate.

The fund generally emphasizes developed markets in Europe and the Pacific, with a limited allocation to emerging markets. Stocks of emerging-markets countries can be substantially more volatile and substantially less liquid than those of both U.S. and more developed foreign markets.

The fund invests in companies that are smaller and less well-known than larger, more widely held companies. Small companies tend to be more vulnerable to adverse developments than larger companies. Small companies may have limited product lines, markets, or financial resources, or they may depend on a limited management group. Their securities may trade infrequently and in limited volumes. As a result, the prices of these securities may fluctuate more than the prices of securities of larger, more widely traded companies. Also, there may be less publicly available information about small companies or less market interest in their securities as compared with larger companies, and it may take longer for the prices of these securities to reflect the full value of their issuers’ earnings potential or assets.

It is important to note that market capitalization ranges change over time, and interpretations of size vary. Therefore, there is no standard definition of “small-cap” and definitions may change over time.

Besides investing in stocks of foreign companies, the fund may make other kinds of investments to achieve its objective.

The fund may invest in preferred stocks and closed-end investment companies that invest primarily in foreign securities. The fund may also invest in convertible securities and warrants.

The fund may invest, to a limited extent, in derivatives. Investments in derivatives may subject the fund to risks different from, and possibly greater than, those of the underlying securities, assets, or market indexes. The fund does not intend to use derivatives for speculation or for the purpose of leveraging, or magnifying, investment returns.

The fund may enter into forward foreign currency exchange contracts, which are a type of derivative contracts.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

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Transamerica Schroders International Small Cap

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Smaller Companies

Investing in smaller companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Investment Style

Returns from foreign small-capitalization growth stocks may trail returns from the overall stock market. Historically, foreign small cap stocks have been more volatile in price than the large cap stocks that dominate the overall market, and they often perform quite differently.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Country/Regional

Local events, such as political upheaval, financial troubles, or natural disasters may weaken a country’s or a region’s securities markets. Because the fund may invest a large portion of its assets in securities of companies located in any one country or region, its performance may be hurt disproportionately by the poor performance of its investments in that area. Country/regional risk is especially high in emerging markets.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be

107

Transamerica Schroders International Small Cap

illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks,” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months, or as otherwise consistent with applicable regulations.

Past Performance

­ ­

No performance is shown for the fund as it commenced operations on March 1, 2008. Performance information for the fund will appear in a future version of this prospectus once the fund has a full calendar year of performance information to report to investors.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	1.07%
Distribution and service (12b-1) fees	N/A
Other expenses	0.23%
Total annual fund operating expenses	1.30%
Expense reductionb	0.03%
Net operating expenses	1.27%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010 to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.27% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.27% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	129	$	409	$	710	$	1,565

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets:
First $300 million	1.07%
Over $300 million	1.00%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 1.07% of the fund’s average daily net assets.

Sub-Adviser:

Schroder Investment Management North America Inc. (“Schroders”)

875 Third Avenue, 22nd Floor

New York, NY 10022- 6225

Schroders has delegated some of its duties as sub-adviser to its London affiliate, Schroder Investment Management North America Limited, 31 Gresham Street, London EC2V 7QA, England.

108

Transamerica Schroders International Small Cap

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets:
First $300 million	0.60%
Over $300 million	0.55%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

The portfolio manager primarily responsible for the day-to-day management of the fund is Matthew Dobbs, who chairs the Schroder International Smallcap Investment Committee. The Investment Committee has overall responsibility for the management of the fund. The Committee, composed of small cap specialists, determines the country allocation of the fund, while stock selection is primarily the responsibility of senior regional small cap portfolio managers.

Matthew Dobbs, who joined Schroders in 1981, is the Head of Global Small Cap Equities for Schroders plc and Schroder Investment Management North America Limited and a member of the Global/EAFE equity team. Following four years in research, Mr. Dobbs has been involved in both global and specialized Pacific Basin portfolio management. He took overall responsibility for the International Small Cap team in February 2000. Prior to that, Mr. Dobbs was the Pacific ex Japan small cap specialist, and has held a small cap role since 1996.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

109

Transamerica Evergreen International Small Cap

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Evergreen International Small Cap is to seek capital growth.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Evergreen Investment Management Company, LLC (“Evergreen”), seeks to achieve this objective by investing principally in:

-   equity securities of small companies located in at least three countries, one of which may be the United States.

The fund normally invests at least 80% of its net assets in equity securities, such as common stocks, convertible securities, preferred stocks, American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”) of small cap issuers located in at least three countries. These are defined as companies which, at the time of purchase, have total market capitalizations that fall in the range of the capitalizations of the companies that comprise the S&P Global ex-U.S. MidSmallCap Index, which is made up of those companies representing the lowest 30% of market capitalization within the S&P Broad Market Index, excluding the United States. The fund may also invest in debt securities of any foreign governments and any international agency such as the World Bank and time deposits with foreign banks and may hold cash and cash equivalents. The fund may invest in securities of issuers located in foreign countries with developed markets as well as those with emerging markets. When investing in securities, the fund seeks to invest in equity securities of issuers that the portfolio manager believes are well managed and positioned to achieve above-average increases in revenue and earnings and have strong prospects for continued revenue growth. The fund also seeks to identify and invest in countries and industries where economic and political factors, including currency movements, are likely to produce above-average growth.

Although not a principal investment strategy, the fund may invest up to 10% of its assets in Real Estate Investment Trusts (“REITs”) or their foreign equivalents.

The fund may engage in hedging and cross-hedging with respect to foreign currencies in both U.S. dollars and foreign currencies to protect itself against a possible decline in the value of another foreign currency in which certain of the fund’s investments are denominated. Under normal conditions, this strategy is not expected to represent more than 25% of the assets of the fund.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Foreign Securities

Investments in foreign securities, including ADRs, GDRs and EDRs, involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

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-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than those associated with investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with investing in more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

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-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Real Estate Securities

Real estate markets have been particularly affected by the financial crisis. Investments in the real estate industry are subject to risks associated with direct investment in real estate.

These risks include:

-   Declining real estate value

-   Risks relating to general and local economic conditions

-   Over-building

-   Increased competition for assets in local and regional markets

-   Increases in property taxes

-   Increases in operating expenses or interest rates

-   Change in neighborhood value or the appeal of properties to tenants

-   Insufficient levels of occupancy

-   Inadequate rents to cover operating expenses

The performance of securities issued by companies in the real estate industry also may be affected by management of insurance risks, adequacy of financing available in capital markets, management, changes in applicable laws and government regulations (including taxes) and social and economic trends.

-REITS

Real estate markets have been particularly affected by the financial crisis. Equity REITs can be affected by any changes in the value of the properties owned. A REIT’s performance depends on the types and locations of the properties it owns and on how well it manages those properties or loan financings. A decline in rental income could occur because of extended vacancies, increased competition from other properties, tenants’ failure to pay rent or poor management. A REIT’s performance also depends on the company’s ability to finance property purchases and renovations and manage its cash flows. Because REITs are typically invested in a limited number of projects or in a particular market segment, they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. Loss of status as a qualified REIT or changes in the treatment of REITs under the federal tax law could adversely affect the value of a particular REIT or the market for REITs as a whole.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I performance has varied from year to year, and how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the S&P Global ex-U.S. MidSmallCap Index, a widely recognized, unmanaged index of market performance made up of those companies with the lowest 30% of market cap within the S&P Broad Market Index (BMI) ex-U.S. The S&P Broad Market Index

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(BMI) ex-U.S. is a comprehensive, rules-based index designed to measure global stock market performance for developed and emerging economics, excluding the United States. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

  Class I Shares  

Class I Shares	Quarter Ended		Return
Best Quarter:		12/31/2006		13.81	%
Worst Quarter:		9/30/2008		(22.74)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year		Life of Class2
Return before taxes		(43.64)%		3.94%
Return after taxes on distribution3		(43.78)%		2.28%
Return after taxes on distributions and sale of fund shares3		(28.17)%		3.39%
S&P Global ex-U.S. MidSmallCap Index (reflects no deduction for fees, expenses, or taxes)		(49.84)%		(0.32)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I shares commenced operations on November 8, 2004.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	1.03%
Distribution and service (12b-1) fees	N/A
Other expenses	0.11%
Total annual fund operating expenses	1.14%
Expense reductionb	0.00%
Net operating expenses	1.14%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.32% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.32% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	116	$	362	$	628	$	1,386

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	1.07%
Over $250 million	1.00%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 1.03% of the fund’s average daily net assets.

Sub-Adviser:

Evergreen Investment Management Company, LLC (“Evergreen”)

200 Berkeley Street

Boston, Massachusetts 02116

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Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Up to $250 million	0.52	%
Over $250 million	0.50	%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

Francis X. Claró, CFA is a Managing Director, Senior Portfolio Manager and Head of Evergreen’s International Developed Markets Equity team. He has been with Evergreen or one of its predecessor firms since 1994. He was co-portfolio manager of Evergreen Latin America Fund and Evergreen Emerging Markets Growth Fund from 1997 to 1999 when he became co-portfolio manager of Evergreen Global Opportunities Fund, and afterwards Head of the International Small and Mid Cap Equity team. He became Portfolio Manager of International Core Equity in 2007. Previously, he worked as an investment officer with the Inter-American Investment Corporation (1992-1994), where he was responsible for making private equity and debt investments. He also served as a senior consultant for Price Waterhouse’s International Consulting practice in the United States and United Kingdom (1986-1990). Mr. Claró has been working in the investment management field since 1986. He received a B.S. in business from ESADE in Barcelona, Spain (1983), a M.S. in economics from London School of Economics (1984), and a M.B.A. from Harvard Business School (1991). He has been awarded the Chartered Financial Analyst (CFA) designation by the CFA Institute and is a member of the Boston Security Analysts Society. Mr. Claró has lived and worked in Europe, the United Kingdom, Latin America and the United States. He is fluent in English, Spanish and Catalan and conversant in Portuguese and French.

Evergreen Investments has provided investment advisory services to various clients for 70 years.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

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Transamerica MFS International Equity

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica MFS International Equity is to seek capital growth.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, MFS^® Investment Management (“MFS”), seeks to achieve this objective by investing principally in equity securities of foreign companies, including emerging market securities.

Under normal market conditions, the fund invests at least 80% of its net assets in common stocks and related equity securities, such as preferred stock, convertible securities and depositary receipts of issuers economically tied to a number of countries throughout the world, potentially including emerging markets countries.

The fund may invest a relatively large percentage of its assets in a single country, a small number of countries, or a particular geographic region.

In selecting investments for the fund, the sub-adviser is not constrained to any particular investment style. MFS may invest the fund’s assets in the stocks of companies it believes to have above average earnings growth potential compared to other companies (growth companies), in the stocks of companies it believes are undervalued compared to their perceived worth (value companies), or in a combination of growth and value companies. MFS may invest the fund’s assets in companies of any size.

MFS may use derivatives for different purposes, including to earn income and enhance returns, to increase or decrease exposure to a particular market, to manage or adjust the risk profile of the fund, or as alternatives to direct investments.

MFS uses a “bottom-up” investment approach in buying and selling investments for the fund. Investments are selected primarily based on fundamental analysis of issuers and their potential in light of their current financial condition and industry position, and market, economic, political, and regulatory conditions. Factors considered may include analysis of earnings, cash flows, competitive position, and management ability. Quantitative analysis of these and other factors may also be considered.

What is “Bottom-Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

The issuer of a security or other investment is generally deemed to be economically tied to a particular country if (a) the security or other investment is issued or guaranteed by the government of that country or any of its agencies, authorities or instrumentalities; (b) the issuer is organized under the laws of, and maintains a principal office in, that country; (c) the issuer has its principal securities trading market in that country; (d) the issuer derives 50% or more of its total revenues from goods sold or services performed in that country; (e) the issuer has 50% or more of its assets in that country; (f) the issuer is included in an index which is representative of that country; or (g) the issuer is exposed to the economic fortunes and risks of that country.

MFS may engage in active and frequent trading in pursuing the fund’s principal investment strategies.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

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Transamerica MFS International Equity

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for their greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Geographic Concentration

Because the fund may invest a relatively large percentage of its assets in issuers located in a single country, a small number of countries, or a particular geographic region, the fund’s performance could be closely tied to the market, currency, economic, political, or regulatory conditions and developments in those countries or that region, and could be more volatile than the performance of more geographically-diversified funds.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity

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securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with all debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

No performance is shown for the Class I shares of the fund as that class did not commence operations until June 10, 2008. Performance information will appear in a future version of this prospectus once Class I shares of the fund have a full calendar year of performance information to report to investors.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.92%
Distribution and service (12b-1) fees	N/A
Other expenses	0.31%
Total annual fund operating expenses	1.23%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	125	$	390	$	676	$	1,489

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.925%
Over $250 million up to $500 million	0.90%
Over $500 million up to $1 billion	0.85%
Over $1 billion	0.80%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.92% of the fund’s average daily net assets.

Sub-Adviser:

MFS^® Investment Management (“MFS”)

500 Boylston Street

Boston, Massachusetts 02116-3741

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Up to $500 million	0.475%
Next $500 million	0.45%
Over $1 billion	0.40%

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Transamerica MFS International Equity

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

David R. Mannheim, Investment Officer of MFS, is a Portfolio Manager of the fund. Mr. Mannheim joined MFS in 1988 as an Equity Research Analyst following non-U.S. securities; he was named Portfolio Manager at MFS in 1992. He is a graduate of Amherst College and the MIT Sloan School of Management.

Marcus L. Smith, Investment Officer of MFS, is a Portfolio Manager of the fund. Mr. Smith joined MFS in 1994 as an Equity Research Analyst following European securities; he was named Portfolio Manager at MFS in 2001. He is a graduate of Mount Union College and the Wharton School of the University of Pennsylvania.

Massachusetts Financial Services Company (“MFS”), d/b/a MFS Investment Management, is America’s oldest mutual fund organization. It and its predecessor organizations have a history of money management dating from 1924 and the founding of the first mutual fund, Massachusetts Investors Trust. MFS is a subsidiary of Sun Life of Canada (U.S.) Financial Services Holdings, Inc., which in turn is an indirect majority-owned subsidiary of Sun Life Financial Inc. (a diversified financial services company).

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

118

Transamerica Marsico International Growth

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Marsico International Growth is to seek long term growth of capital.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Columbia Management Advisors, LLC (“Columbia”), has entered into an agreement with Marsico Capital Management, LLC (“Marsico”), under which Marsico provides portfolio management to the fund. Marsico seeks to achieve the fund’s objective by investing primarily (no less than 65% of its total assets) in:

-   common stocks of foreign companies that are selected for their long-term growth potential.

The fund may invest in companies of any size throughout the world. The fund normally invests in the securities of issuers that are economically tied to one or more foreign countries, and expects to be invested in at least four different foreign countries. The fund may invest in securities of companies economically tied to emerging markets.

In selecting investments for the fund, Marsico uses an approach that combines “top-down” macro-economic analysis with “bottom-up” stock selection.

The “top-down” approach may take into consideration macro-economic factors such as, without limitation, interest rates, inflation, demographics, the regulatory environment and the global competitive landscape. In addition, Marsico may also examine other factors that may include, without limitation, the most attractive global investment opportunities, industry consolidation, and the sustainability of financial trends observed. As a result of the “top-down” analysis, Marsico seeks to identify sectors, industries and companies that may benefit from the overall trends Marsico has observed.

-WHAT IS A TOP-DOWN APPROACH?

When using a “top-down” approach, the fund manager looks first at broad market factors, and on the basis of those market factors, chooses certain sectors, or industries within the overall market. The manager then looks at individual companies within those sectors or industries.

Marsico then looks for individual companies or securities with earnings growth potential that may not be recognized by the market at large. In determining whether a particular company or security may be a suitable investment, Marsico may focus on any of a number of different attributes that may include, without limitation, the company’s specific market expertise or dominance; its franchise durability and pricing power; solid fundamentals (e.g., a strong balance sheet, improving returns on equity, the ability to generate free cash flow, apparent use of conservative accounting standards, and transparent financial disclosure); strong and ethical management; commitment to shareholder interests; reasonable valuations in the context of projected growth rates; and other indications that a company or security may be an attractive investment prospect. This process is called “bottom-up” stock selection.

As part of this fundamental, “bottom-up” research, Marsico may visit with various levels of a company’s management, as well as with its customers, and (as relevant) suppliers, distributors and competitors. Marsico also may prepare detailed earnings and cash flow models of companies. These models may assist Marsico in projecting potential earnings growth, current income and other important company financial characteristics under different scenarios. Each model is typically customized to follow a particular company and is generally intended to replicate and describe a company’s past, present and potential future performance. The models may include quantitative information and detailed narratives that reflect updated interpretations of corporate data and company and industry developments.

-WHAT IS “BOTTOM-UP” ANALYSIS?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broad market factors.

Marsico may reduce or sell a fund’s investments in portfolio companies if, in the opinion of Marsico, a company’s fundamentals change substantively, its stock price appreciates excessively in relation to fundamental earnings growth prospects, the company appears not to realize its growth potential or current income potential, more attractive investment opportunities appear elsewhere, or for other reasons.

The core investments of the fund generally may include established companies and securities that offer long-term growth potential. However, the fund also may typically include securities of less mature companies, companies or securities with more aggressive growth characteristics, and companies undergoing significant changes such as the introduction of a new product line, the appointment of a new management team, or an acquisition.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

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Transamerica Marsico International Growth

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Foreign Securities

Investments in foreign securities, including American Depositary receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in securities prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

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Transamerica Marsico International Growth

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Morgan Stanley Capital International Europe, Australasia, and Far East Index (“MSCI-EAFE Index”), a widely recognized, unmanaged index of market performance which includes stocks traded on exchanges in Europe, Australasia, and the Far East. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

  Class I Shares  

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2005		12.50	%
Worst Quarter:		12/31/2008		(28.07)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(50.83)%		(1.94)%
Return after taxes on distribution3	(50.97)%		(3.77)%
Return after taxes on distributions and sale of fund shares3	(32.85)%		(1.71)%
MSCI-EAFE Index (reflects no deduction for fees, expenses, or taxes)	(43.06)%		(0.27)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I shares commenced operations on November 8, 2004.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the i mpact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	1.02%
Distribution and service (12b-1) fees	N/A
Other expenses	0.10%
Total annual fund operating expenses	1.12%
Expense reductionb	0.00%
Net operating expenses	1.12%%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.31% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.31% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	114	$	356	$	617	$	1,363

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Transamerica Marsico International Growth

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $300 million	1.05%
Over $300 million up to $400 million	1.01%
Over $400 million up to $1 billion	0.96%
Over $1 billion	0.91%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 1.02% of the fund’s average daily net assets.

Sub-Adviser:

Columbia Management Advisors, LLC (“Columbia”)

100 Federal Street

Boston, MA 02110

Columbia has delegated certain of its duties as sub-adviser to Marsico Capital Management, LLC, 1200 17^th Street, Suite 1600, Denver, CO 80202.

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $400 million	0.45%
Over $400 million up to $1 billion	0.40%
Over $1 billion	0.35%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

James G. Gendelman, CPA, is the portfolio manager of Transamerica Marsico International Growth. Prior to joining Marsico in May of 2000, Mr. Gendelman spent thirteen years as a Vice President of International Sales for Goldman, Sachs & Co. He holds a bachelors degree in Accounting from Michigan State University and a M.B.A. in Finance from the University of Chicago. Mr. Gendelman was a certified public accountant for Ernst & Young from 1983 to 1985.

Marsico was organized in September 1997 as a registered investment adviser and is an independently-owned investment management firm. Marsico provides investment services to mutual funds and private accounts and, as of December 31, 2008, had approximately $56 billion under management. Thomas F. Marsico is the founder, Chief Executive Officer, and Chief Investment Officer of Marsico.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

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Transamerica Neuberger Berman International

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Neuberger Berman International is long-term growth of capital.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Neuberger Berman Management, LLC. (“Neuberger”), seeks to achieve this objective by investing the assets of the fund primarily in common stocks of foreign companies of any size, including companies that are economically tied to developed and emerging industrialized markets. Under normal market conditions, the fund will invest in a number of countries throughout the world and expects to be investing in more than three different foreign countries. An issuer generally will be deemed to be economically tied to the country (or countries) in which the issuer has at least 50% of its assets or from which it derives at least 50% of its revenues or profits, or in whose securities markets its securities principally trade.

The fund seeks to reduce risk by diversifying among many industries. Although it has the flexibility to invest a significant portion of its assets in one country or region, it generally intends to remain well-diversified across countries and geographical regions.

In picking stocks, the fund looks for well-managed and profitable companies that show growth potential and whose stock prices are undervalued. Factors in identifying these firms may include strong fundamentals, such as attractive cash flows and balance sheets, as well as prices that are reasonable in light of projected returns. The fund also considers the outlooks for various countries and regions around the world, examining economic, market, social, and political conditions.

The fund follows a disciplined selling strategy and may sell a stock when it reaches a target price, fails to perform as expected, or when other opportunities appear more attractive.

Neuberger may seek to hedge a currency exposure resulting from securities positions when it finds the currency exposure unattractive. To the extent authorized by laws and regulations, the fund may also engage in borrowing and securities lending transactions and use derivatives.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds may fluctuate in price, the value of your investment in the fund will go up and down.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

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-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Country, Sector or Industry Focus

To the extent the fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the single country, sector or industry than if the fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, technology companies involve risks due to factors such as the rapid pace of product change, technological developments and new competition. Their stocks historically have been volatile in price, especially over the short term, often without regard to the merits of individual companies. Banks and financial institutions are subject to potentially restrictive governmental controls and regulations that may limit or adversely affect profitability and share price. In addition, securities in that sector may be very sensitive to interest rate changes throughout the world.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

-Securities Lending

The fund may lend securities to other financial institutions that provide cash or other securities as collateral. This involves the risk that the borrower may fail to return the securities in a timely manner or at all. As a result, the fund may lose money and there may be a delay in recovering the loaned securities. The fund could also lose money if it does not recover the securities and/or the value of the collateral falls, including the value of investments made with cash collateral. These events could trigger adverse tax consequences to the fund.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash

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needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

-Leveraging

When the fund engages in transactions that have a leveraging effect on the fund’s portfolio, the value of the fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the fund would otherwise have. The fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause the fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Morgan Stanley Capital International Europe, Australasia, and Far East Index (“MSCI-EAFE Index”), a widely recognized, unmanaged index of market performance which includes stocks traded on exchanges in Europe, Australasia, and the Far East. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		12/31/2006		12.10	%
Worst Quarter:		9/30/2008		(24.52)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(45.74)%		(10.48)%
Return after taxes on distribution3	(45.97)%		(11.54)%
Return after taxes on distributions and sale of fund shares3	(29.43)%		(8.60)%
MSCI-EAFE Index (reflects no deduction for fees, expenses, or taxes)	(43.06)%		(5.97)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I shares commenced operations on December 6, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.96%
Distribution and service (12b-1) fees	N/A
Other expenses	0.10%
Total annual fund operating expenses	1.06%
Expense reductionb	0.00%
Net operating expenses	1.06%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.25% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense

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Transamerica Neuberger Berman International

limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.25% of average daily net assets, excluding certain extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	108	$	337	$	585	$	1,294

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $100 million	1.00%
Over $100 million	0.95%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.96% of the fund’s average daily net assets.

Sub-Adviser:

Neuberger Berman Management, LLC (“Neuberger”)

605 Third Avenue, 2nd Floor

New York, NY 10158-0180

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $100 million	0.50%
Over $100 million	0.45%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

Benjamin Segal, CFA, is a Vice President of Neuberger and Managing Director of Neuberger Berman, LLC. He joined Neuberger in 1999. He was an assistant portfolio manager at another firm from 1997 to 1998. Prior to 1997, he held positions in international finance and consulting. He is a graduate of The Wharton School of Business, M.B.A.; the University of Pennsylvania, M.A.; and Jesus College, Cambridge University, England, B.A.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

126

Transamerica Thornburg International Value

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Thornburg International Value is to seek to provide long-term capital appreciation. The secondary goal is to seek current income.

Principal Strategies and Policies

­ ­

The fund invests primarily in foreign securities, and under normal market conditions, invests at least 75% of its assets in foreign securities or depository receipts of foreign securities of issuers that are located in a number of countries throughout the world. Foreign securities are issued by companies that conduct their principal business activities outside the United States, are organized under the laws of or maintain their principal place of business outside the United States, or whose securities are traded principally on exchanges outside the United States. The fund may invest in emerging markets.

The fund’s sub-adviser, Thornburg Investment Management, Inc. (“Thornburg”) intends to invest on an opportunistic basis, where it believes there is intrinsic value. The fund’s principal focus will be on traditional or basic value stocks. However, the fund’s portfolio may include stocks that Thornburg believes provide value in a broader or different context. The relative proportions of these different types of securities will vary over time. The fund ordinarily invests in stocks that may be depressed or reflect unfavorable market perceptions of company or industry fundamentals. The fund may invest in companies of any size, but invests primarily in the large and middle range of public company market capitalizations (i.e., companies with market capitalizations of $2 billion or more at the time of purchase). The fund may also invest in partnership interests.

Thornburg primarily uses individual issuer and industry analysis to make investment decisions. Value, for purposes of the fund’s selection criteria, relates both to current and to projected measures. Among the specific factors considered by Thornburg in identifying undervalued securities for inclusion in the fund are:

-   price/earnings ratio

-   price/book value

-   price/cash flow ratio

-   debt/capital ratio

-   dividend yield

-   dividend history

-   security and consistency of revenue stream

-   undervalued assets

-   relative earnings growth potential

-   industry growth potential

-   industry leadership

-   dividend growth potential

-   franchise value

-   potential for favorable developments

The fund typically makes equity investments in the following three types of companies:

-   Basic Value companies which, in Thornburg’s opinion, are financially sound companies with well established businesses whose stock is selling at low valuations relative to the companies’ net assets or potential earning power. These stocks may include energy and commodity companies.

-   Consistent Earner companies with steady earnings and dividend growth that are selling at attractive value and are priced below historical norms. Stocks in the category sometimes sell at premium valuations and sometimes at discount valuations. These stocks may include blue chip companies.

-   Emerging Franchises are value-priced companies that, in Thornburg’s opinion, are in the process of establishing a leading position in a product, service or market and which Thornburg expects will grow, or continue to grow, at an above-average rate. These stocks may include cellular technologies in emerging markets.

The fund may use forward currency contracts to hedge against a decline in the value of existing investments denominated in foreign currency. The fund may conduct foreign currency transactions on a spot basis or by entering into forward contracts to purchase or sell foreign currencies at a future date and price. The fund may also invest in other types of derivative instruments.

Debt obligations will be considered for investment when Thornburg believes them to be more attractive than equity alternatives. The fund may purchase debt obligations of any maturity and of any quality.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented

127

Transamerica Thornburg International Value

volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than those associated with investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with investing in more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held

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Transamerica Thornburg International Value

or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

No performance is shown for the fund as it commenced operations on September 15, 2008. Performance information will appear in a future version of this prospectus once the fund has a full calendar year of performance information to report to investors.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	1.10%
Distribution and service (12b-1) fees	N/A
Other expenses	0.66%
Total annual fund operating expenses	1.76%
Expense reductionb	0.41%
Net operating expenses	1.35%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.35% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.35% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years
I	$	137	$	514

129

Transamerica Thornburg International Value

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets

First $100 million	1.10%
Over $100 million up to $300 million	1.00%
Over $300 million	0.95%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 1.10% of the fund’s average daily net assets.

Sub-Adviser:

Thornburg Investment Management, Inc. (“Thornburg”)

2300 Ridgetop Rd.

Santa Fe, New Mexico 87506

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $500 million	0.425%
Over $500 million	0.40%

The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with Transamerica Partners International Equity Portfolio, also sub-advised by Thornburg.

Note: The sub-advisory fees for this fund were recently reduced.

Prior to January 1, 2009, the sub-adviser received the following compensation from TAM, expressed as a specified percentage of the fund’s average daily net assets:

Up to $100 million	0.65%
Over $100 million up to $300 million	0.55%
Over $300 million	0.50%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s annual report for the fiscal period ended October 31, 2008.

Portfolio Managers:

William V. Fries, CFA, is a managing director of Thornburg, and a co-portfolio manager of the Thornburg International Equity Strategy and the Thornburg Domestic Equity Strategy. He joined Thornburg in 1995 as managing director and founding portfolio manager of the Thornburg Value Fund and subsequent Domestic Equity Strategy. In 1998, he also founded the Thornburg International Value Fund and subsequent International Equity Strategy. His responsibilities include portfolio management and analysis of companies as well as evaluation of existing positions and overall equity strategy performance. Mr. Fries began his career as a securities analyst and bank investment officer. His 30 plus years of investment management experience includes an extended tenure as vice president of equities at USAA Investment Management Company. He received a B.S. from Pennsylvania State University and an M.B.A. from Temple University.

Wendy Trevisani is a managing director of Thornburg, and a co-portfolio manager of the Thornburg International Equity Strategy and the Thornburg International ADR Equity Strategy. Her responsibilities include portfolio management and analysis of companies as well as evaluation of existing positions and overall equity fund performance. She joined Thornburg as an associate portfolio manager in 1999, and was named managing director in 2003. She was promoted to co-portfolio manager in 2006. Prior to joining Thornburg, Ms. Trevisani began her investment career as an institutional sales and trading representative for Salomon Smith Barney in both New York City and London. She received an M.B.A. with a concentration in Finance from Columbia University and graduated Cum Laude with a B.A. degree in International Relations from Bucknell University.

Lei Wang, CFA, is a managing director of Thornburg, and co-portfolio manager of the Thornburg International Equity Strategy. His responsibilities include portfolio management and analysis of companies as well as evaluation of existing positions and overall equity strategy performance. Mr. Wang joined Thornburg Investment Management in 2004 as an associate portfolio manager and in 2006 was promoted to co-portfolio manager for the International Equity Strategy and was also named managing director. Prior to joining Thornburg, he served as an associate for Deutsche Bank as well as Enso Capital Management. He has also worked as a bank supervision manager at China’s central bank. Mr. Wang holds a B.A. and an M.A. from East China Normal University and an M.B.A. from New York University.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

130

Transamerica Oppenheimer Developing Markets

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Oppenheimer Developing Markets is to aggressively seek capital appreciation.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, OppenheimerFunds, Inc. (“Oppenheimer”), seeks to achieve this objective by investing mainly in common stocks of issuers in emerging markets throughout the world.

-   Under normal market conditions, the fund will invest at least 80% of its net assets in equity securities of issuers that are economically tied to one or more emerging markets countries, and will diversify its investments across at least three different emerging markets countries.

-   The fund can (but is not required to) invest up to 100% of its total assets in foreign securities.

-   The fund will emphasize investments in common stocks and other equity securities.

-   The fund will emphasize investments in growth companies, which can be in any market capitalization range.

In selecting securities for the fund, Oppenheimer looks primarily for foreign companies in developing markets with high growth potential. It uses fundamental analysis of a company’s financial statements, management structure, operations and product development, and considers the special factors and risks of the country in which the issuer operates. In seeking broad diversification of the fund’s portfolio, Oppenheimer currently seeks:

-   Companies of different capitalization ranges with strong market positions and the ability to take advantage of barriers to entry in their industry, such as high start-up costs.

-   Companies with management that has a proven record.

-   Companies with newer or established businesses that are entering into a growth cycle.

-   Companies with strong earnings growth whose stock is selling at a reasonable price.

In applying these and other selection criteria, the fund will consider the effect of worldwide trends on the growth of various business sectors, and look for companies that may benefit from four main global trends: development of new technologies, corporate restructuring, the growth of mass affluence and demographic changes. This strategy may change over time.

Oppenheimer generally defines “emerging market” as countries outside the U.S. and most of Western Europe, Canada, Japan, Australia and New Zealand that have economies, industries and stock markets that it believes are growing and gaining more stability and offer attractive long-term investment prospects. To determine if an issuer is economically tied to an emerging market, it considers a number of factors, such as where the issuer is organized, the principal trading market for its securities, the sources of its revenues and the location of its assets.

The fund looks for stocks of companies that have growth potential. Growth companies may be companies that are developing new products or services, that have relatively favorable prospects, or that are expanding into new and growing markets. Growth companies include established companies that are entering a growth cycle, they can also include newer companies, whose securities pose greater risks of loss and can result in greater volatility in the fund’s share prices.

To seek its investment objective, the fund can also use the investment techniques and strategies described below:

-   Other Equity Securities. While the fund mainly buys common stocks, it can also buy preferred stocks and securities convertible into common stock and can hold rights and warrants.

-   Hedging. The fund can buy and sell futures contracts, put and call options, and forward contracts. Some hedging strategies could hedge the fund’s portfolio against price fluctuations. Other hedging strategies would tend to increase the fund’s exposure to the securities market. Forward contracts could be used to try to manage foreign currency risks on the fund’s foreign investments.

-   Portfolio Turnover. The fund’s investment process may cause the fund to engage in active and frequent trading. Therefore, the fund may engage in short-term trading while trying to achieve its objective.

-   Debt/Fixed-Income Securities. The fund can invest in debt securities, including convertible securities, which can include securities of foreign companies and governments.

-   Illiquid and Restricted Securities. The fund will not invest more than 15% of its net assets in illiquid or restricted securities.

-   Derivatives. The fund can invest in a number of different derivative instruments to hedge investment risks or to seek increased returns.

The fund may also invest in small, unseasoned companies, special situations and temporary defensive and interim investments.

The allocation of the fund’s portfolio among different investments will vary over time based upon an evaluation of economic and market trends. The fund’s portfolio might not always include all of the different types of investments described in this prospectus.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

131

Transamerica Oppenheimer Developing Markets

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. However, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Country, Sector or Industry Focus

To the extent the fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the single country, sector or industry than if the fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, technology companies involve risks due to factors such as the rapid pace of product change, technological developments and new competition. Their stocks historically have been volatile in price, especially over the short term, often without regard to the merits of individual companies. Banks and financial institutions are subject to potentially restrictive governmental controls and regulations that may limit or adversely affect profitability and share price. In addition, securities in that sector may be very sensitive to interest rate changes throughout the world.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

132

Transamerica Oppenheimer Developing Markets

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

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-Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

-Portfolio Turnover

The fund may engage in a significant number of short-term transactions, which may adversely affect the fund performance. Increased turnover results in higher brokerage costs or mark-up charges for the fund. The fund ultimately passes these costs on to shareholders. Short-term trading may also result in short-term capital gains, which are taxed as ordinary income to shareholders.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Morgan Stanley Capital International Emerging Markets Index (“MSCI-EMI”), a widely recognized, unmanaged index of market performance that measures equity market performance in global emerging markets. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		12/31/2006		16.92	%
Worst Quarter:		12/31/2008		(28.14)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(47.93)%		(4.10)%
Return after taxes on distribution3	(49.57)%		(5.98)%
Return after taxes on distributions and sale of fund shares3	(28.90)%		(3.37)%
MSCI-EMI (reflects no deduction for fees, expenses, or taxes)	(53.18)%		(3.40)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I shares commenced operations on December 6, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	1.11%
Distribution and service (12b-1) fees	N/A
Other expenses	0.21%
Total annual fund operating expenses	1.32%
Expense reductionb	0.00%
Net operating expenses	1.32%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.45% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund

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operating expenses are less than 1.45% of average daily net assets, excluding certain extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	134	$	418	$	723	$	1,590

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $50 million	1.20%
Over $50 million up to $200 million	1.15%
Over $200 million up to $500 million	1.10%
Over $500 million	1.05%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 1.11% of the fund’s average daily net assets.

Sub-Adviser:

OppenheimerFunds, Inc. (“Oppenheimer”)

Two World Financial Center

225 Liberty Street, 11th Floor

New York, NY 10281-1008

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $50 million	0.70%
Over $50 million up to $200 million	0.65%
Over $200 million up to $500 million	0.60%
Over $500 million	0.55%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

The fund’s portfolio is managed by Justin Leverenz who is primarily responsible for the day-to-day management of the fund’s investments.

Justin Leverenz, CFA, joined Oppenheimer in July 2004 as a Vice President and Senior Analyst. Prior to joining Oppenheimer, Mr. Leverenz was the head of Equity Research in Taiwan and the Director of Pan-Asian Technology Research for Goldman Sachs. He also served as head of Equity Research in Taiwan for Barclays de Zoete Wedd (now Credit Suisse) and as a portfolio manager for Martin Currie Investment Managers in Scotland. In total, he has over 15 years of investment management and research experience, primarily focused on emerging markets. He holds an M.A. in International Economics and a B.A. in Chinese Studies and Political Economy from the University of California, San Diego.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

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Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica WMC Emerging Markets is to seek long-term capital appreciation.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Wellington Management Company, LLP (“Wellington Management”), seeks to achieve this objective by generally investing at least 80% of the fund’s net assets in equity securities of companies that conduct their principal business activities in emerging markets, are organized under the laws of or maintain their principal place of business in emerging markets, or whose securities are traded principally on exchanges in emerging markets. The sub-adviser considers emerging markets to be markets with rapidly growing economies. Examples of emerging markets include China, India, Pakistan, Mexico, Brazil, Chile, much of Southeast Asia, countries in Eastern Europe, the Middle East, parts of Africa and Latin America. Wellington Management also seeks to earn returns in excess of the MSCI Emerging Markets Equity Index.

The fund will focus its investments in those emerging markets in which the portfolio manager believes the economies are developing strongly and markets are becoming more liquid, or other emerging markets that meet the portfolio manager’s criteria for investment. The fund seeks to benefit from policies of economic development being adopted in many emerging markets. These policies include domestic price reform, reducing internal budget deficits, privatization, encouraging foreign investments, and developing capital markets.

The fund employs an integrated approach to investing. This means that the portfolio manager combines country, sector, and stock level analysis into the decision making process.

In selecting individual securities, the sub-adviser looks to identify companies that it believes display one or more of the following characteristics:

-   Operate in growing markets

-   Attractive valuations relative to cash earnings forecasts or other valuation criteria

-   Unique sustainable competitive advantages (e.g., market share, proprietary products)

-   Improving industry or country fundamentals

Factors considered in the top down analysis include:

-   Relative economic growth potential of the various economies and securities markets

-   Political, financial, and social conditions influencing investment opportunities

-   Relative rates of earnings growth

-   Interest rate outlook and expected levels of inflation

-   Market prices relative to historic averages

The fund generally sells a stock if the portfolio manager believes its target price has been reached, its earnings are disappointing, its revenue growth has slowed, its underlying fundamentals have deteriorated, or if there are deteriorating industry or country fundamentals. The fund may also sell or trim a stock if the portfolio manager believes, from a risk control perspective, the stock’s position size is too large for the fund’s portfolio. Also, stocks may be sold when negative country, currency, or general industry factors affect a company’s outlook, or to meet cash requirements.

The fund may invest in all types of securities, many of which will be denominated in currencies other than the U.S. dollar. The securities may be listed on a U.S. or foreign stock exchange or traded in U.S. or foreign over-the-counter markets. The fund normally concentrates its investments in common stocks; however, it may invest in other types of equity securities, including securities convertible into or exchangeable for common stock, depositary receipts, and rights and warrants to purchase common stock. The fund also may invest up to 20% of its assets in preferred stock and investment-grade or comparable quality debt securities.

The fund may invest in initial public offerings (“IPOs”), which are subject to specific risks, including high volatility, no track record, illiquid securities and less predictable earnings.

The fund may invest up to 15% of its net assets in illiquid securities (i.e., securities that cannot be readily sold), and may from time to time enter into forward foreign currency exchange contracts in an attempt to manage the risk of adverse changes in currencies. The fund may also purchase put options in an attempt to hedge against a decline in the price of securities it holds in its portfolio. A put option gives the fund the right to sell an underlying security at a particular price during a fixed period of time. Forward foreign currency exchange contracts and put options on securities may not be available to the fund on reasonable terms in many situations, and the fund may frequently choose not to enter into such contracts or purchase such options even when they are available. The fund may also invest in other types of derivatives.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

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-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. However, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Country, Sector or Industry Focus

To the extent the fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the single country, sector or industry than if the fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, technology companies involve risks due to factors such as the rapid pace of product change, technological developments and new competition. Their stocks historically have been volatile in price, especially over the short term, often without regard to the merits of individual companies. Banks and financial institutions are subject to potentially restrictive governmental controls and regulations that may limit or adversely affect profitability and share price. In addition, securities in that sector may be very sensitive to interest rate changes throughout the world.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

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-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

-Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company.

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Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

-Portfolio Turnover

The fund may engage in a significant number of short-term transactions, which may adversely affect the fund performance. Increased turnover results in higher brokerage costs or mark-up charges for the fund. The fund ultimately passes these costs on to shareholders. Short-term trading may also result in short-term capital gains, which are taxed as ordinary income to shareholders.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

No performance is shown for the fund as it commenced operations on September 30, 2008. Performance information will appear in a future version of this prospectus once the fund has a full calendar year of performance information to report to investors.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	1.15%
Distribution and service (12b-1) fees	N/A
Other expenses	1.11%
Total annual fund operating expenses	2.26%
Expense reductionb	0.86%
Net operating expenses	1.40%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.40% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.40% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years
I	$	143	$	624

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $300 million	1.15%
Over $300 million	1.10%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 1.15% of the fund’s average daily net assets.

Sub-Adviser:

Wellington Management Company, LLP (“Wellington Management”)

75 State Street

Boston, Massachusetts 02109

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.70% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s annual report for the fiscal period ended October 31, 2008.

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Portfolio Manager:

Vera M. Trojan, CFA, Senior Vice President and Equity Portfolio Manager of Wellington Management, has served as portfolio manager of the fund since its inception in 2008. Ms. Trojan joined Wellington Management as an investment professional in 1989.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

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Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Templeton Global is to seek long-term growth of capital.

Note: Class I shares of this fund are not currently offered for investment.

Principal Strategies and Policies

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The fund’s assets are allocated between two sub-advisers, Transamerica Investment Management, LLC (“TIM”) and Templeton Investment Counsel, LLC (“Templeton”). TIM manages a portion of the fund’s assets composed of domestic securities (called the “domestic portfolio”), and Templeton manages a portion of the fund’s assets composed of non-U.S. securities (called the “international portfolio”). The percentage of assets allocated to each manager generally is based on the weighting of securities from U.S. and foreign issuers comprising the Morgan Stanley Capital International World Index (“MSCIW Index”), a market capitalization-weighted benchmark index made up of equities from 23 countries, including the U.S. Each of the domestic and international percentages of the fund are adjusted periodically to account for changes that may be made in the composition of the MSCIW Index.

-Domestic Portfolio

The fund will invest, under normal circumstances, at least 80% of its assets in the “domestic portfolio” in a diversified portfolio of domestic common stocks that are believed by TIM to have the defining feature of premier growth companies that are undervalued in the stock market. TIM uses a “bottom-up” approach to investing and builds the fund’s portfolio one company at a time by investing fund assets principally in equity securities. TIM believes in long term investing and does not attempt to time the market. TIM buys securities of companies it believes have the defining features of premier growth companies that are undervalued in the stock market. Premier companies, in the opinion of TIM, have many or all of the following features — shareholder-oriented management, dominance in market share, cost production advantages, leading brands, self-financed growth and attractive reinvestment opportunities.

What is a “Bottom Up” Analysis?

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

-International Portfolio

Templeton seeks to achieve the fund’s objective by investing in foreign securities. Templeton normally will invest the assets of the “international portfolio” primarily in equity securities. An equity security, or stock, represents a proportionate share of the ownership of a company. Its value is based on the success of the company’s business, any income paid to stockholders, the value of the company’s assets and general market conditions. Common stocks, preferred stocks and convertible securities are examples of equity securities. Convertible securities generally are debt securities or preferred stock that may be converted into common stock after certain time periods or under certain circumstances.

For purposes of the fund’s investments, “foreign securities” means those securities issued by companies that:

-   have their principal securities trading markets outside the U.S.; or

-   derive 50% or more of their total revenue from either goods or services produced or sales made in markets outside the U.S.; or

-   have 50% or more of their assets outside the U.S.; or

-   are linked to non-U.S. dollar currencies; or

-   are organized under the laws of, or with principal offices in, another country

The fund may invest a portion of its assets in smaller companies. The fund considers smaller company stocks to be generally those with market capitalizations of less than $4 billion. Templeton may also invest in American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), which are certificates issued typically by a bank or trust company that give their holders the right to receive securities issued by a foreign or domestic company. Templeton, from time to time, may have significant investments in one or more countries or in particular sectors such as technology companies and financial institutions.

Depending upon current market conditions, Templeton generally invests a portion of its total assets in debt securities of companies and governments located anywhere in the world. Templeton may use various derivative strategies seeking to protect its assets, implement a cash or tax management strategy or enhance its returns. With derivatives, the manager attempts to predict whether an underlying investment will increase or decrease in value at some future time. The manager considers various factors, such as availability and cost, in deciding whether to use a particular instrument or strategy.

When choosing equity investments, Templeton applies a “bottom-up,” value-oriented, long-term approach, focusing on the market price of a company’s securities relative to the manager’s evaluation of the company’s long-term earnings, asset value and cash flow potential. The manager also considers and analyzes various measures relevant to stock valuation, such as a company’s price/cash flow ratio, price/earnings ratio, profit margins and liquidation value.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

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Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Foreign Securities

Investments in foreign securities, including ADRs, GDRs, and EDRs, involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Smaller Companies

Investing in smaller companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some

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cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Country, Sector or Industry Focus

To the extent the fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the single country, sector or industry than if the fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, technology companies involve risks due to factors such as the rapid pace of product change, technological developments and new competition. Their stocks historically have been volatile in price, especially over the short term, often without regard to the merits of individual companies. Banks and financial institutions are subject to potentially restrictive governmental controls and regulations that may limit or adversely affect profitability and share price. In addition, securities in that sector may be very sensitive to interest rate changes throughout the world.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The past performance information shown below is for Class A shares, which would have substantially similar annual returns as Class I shares because both share classes are invested in the same portfolio of securities. The returns for Class A shares will vary from Class I shares to the extent that the Classes do not have the same expenses and Class I shares are not subject to sales charges (which are reflected in the performance information about Class A shares in the table).

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The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the MSCIW Index, a widely recognized, unmanaged index of market performance made up of equities from 23 countries, including the U.S. The bar chart does not reflect the impact of sales charges, which if reflected, would lower returns. The table includes deduction of applicable Class A sales charges. Absent limitations of the fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended		Return
Best Quarter:		12/31/1999		43.29	%
Worst Quarter:		12/31/2008		(21.89)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Years	5 Years	10 Years
Return before taxes	(46.67)%	(4.06)%		(2.87)%
Return after taxes on distributions2	(46.76)%	(4.18)%		(3.11)%
Return after taxes on distributions and sale of fund shares2	(30.25)%	(3.37)%		(2.33)%
MSCIW Index (reflects no deduction for fees, expenses, or taxes)	(40.33)%	0.00%		(0.19)%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.

²  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Note: Prior to August 1, 2006, a different sub-adviser served as co-investment sub-adviser to the fund and managed the fund’s domestic equity component. The performance set forth prior to that date is attributable to the previous sub-adviser. Prior to October 27, 2006, the fund employed a different investment program for the fund’s domestic equity component.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.80%
Distribution and service (12b-1) fees	N/A
Other expenses	0.46%
Total annual fund operating expenses	1.26%
Expense reductionb	0.06%
Net operating expenses	1.20%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008, restated to reflect the estimated expenses of Class I shares.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.20% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	122	$	394	$	686	$	1,517

Additional Information

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Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

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Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $500 million	0.80%
Over $500 million	0.70%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.80% of the fund’s average daily net assets.

Sub-Advisers:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, CA 90025

Templeton Investment Counsel, LLC (“Templeton”)

500 E. Broward Blvd, Suite 2100

Fort Lauderdale, FL 33394

Sub-Advisory Fee:

TIM receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $500 million	0.35%
Over $500 million	0.30%

Templeton receives a portion of the sub-advisory fee based on the amount of assets that it manages as follows:

First $500 million	0.40%
Over $500 million up to $1.5 billion	0.375%
Over $1.5 billion	0.35%

TIM receives the sub-advisory fee stated above, less any amount paid to Templeton for its sub-advisory services.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

TIM:

Gary U. Rollé, CFA

Portfolio Manager (co)

Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.

Templeton:

Tina Sadler, CFA, Vice President, Portfolio Manager and Research Analyst, joined Templeton in 1997 and currently has global research responsibilities for global wireless telecommunication services, small-cap telecommunications, as well as building and construction materials.

Antonio T. Docal, CFA, Senior Vice President, joined the Templeton organization in 2001. With more than 20 years of investment experience, Mr. Docal has research responsibility for the global chemical industry, as well as the telecommunications equipment sector. Prior to joining Templeton, Mr. Docal was Vice President and Director at Evergreen Funds in Boston, managing the Evergreen Latin America Fund and co-managing the Evergreen Emerging Markets Growth Fund and the Evergreen Global Opportunities Fund. Mr. Docal earned a B.A. in economics from Trinity College in Connecticut and an M.B.A. with concentrations in finance and international management from the Sloan School of Management at the Massachusetts Institute of Technology.

Gary Motyl, CFA, President and Chief Investment Officer, Templeton Institutional Global Equities, manages several institutional mutual funds and separate account portfolios and has research responsibility for the global automobile industry. Mr. Motyl joined Templeton in 1981.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The Templeton organization has been investing globally since 1940.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

Financial Highlights:

Financial Highlights are not included in this prospectus because no Class I shares of this fund were issued at the fund’s fiscal year end.

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Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica PIMCO Real Return TIPS is to seek maximum real return consistent with preservation of real capital and prudent investment management.

Principal Strategies and Policies

­ ­

The fund’s sub adviser, Pacific Investment Management Company LLC (“PIMCO”), seeks to achieve this objective by investing principally in Treasury Inflation Indexed Securities, also referred to as Treasury Inflation Protected Securities or “TIPS”.

PIMCO invests, under normal circumstances, at least 80% of the fund’s net assets in TIPS of varying maturities. Inflation protected indexed bonds are fixed-income securities that are structured to provide protection against inflation. The value of the bond’s principal or the interest income paid on the bond is adjusted to track changes in an official inflation measure. The U.S. Treasury uses the Consumer Price Index for Urban Consumers (“CPIU”) as the inflation measure. “Real return” equals total return less the estimated cost of inflation, which is typically measured by the change in an official inflation measure. The average portfolio duration of this fund normally varies within three years (plus or minus) of the duration of the Barclays Capital U.S. TIPS Index, which as of December 31, 2008 was 6.09 years. Additional inflation protected investments may include inflation indexed bonds issued by agencies of the U.S. government, government sponsored enterprises, non U.S. governments, U.S. corporations and foreign companies.

Other investments may include mortgage-related securities, including stripped mortgage-related securities; and other fixed-income securities, including corporate bonds and notes, asset backed securities, money market instruments; and derivative instruments and forward commitments relating to the above securities.

PIMCO invests the fund’s assets primarily in investment grade debt securities, but may invest up to 10% of the assets in high yield securities (“junk bonds”) rated B or higher by Moody’s, Fitch, or S&P or, if unrated, determined by PIMCO to be of comparable quality. PIMCO may invest up to 30% of its assets in securities denominated in foreign currencies, and may invest beyond this limit in U.S. dollar denominated securities of foreign issuers. The fund may invest up to 15% of its total assets in securities and instruments that are economically tied to emerging markets countries. Foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) normally will be limited to 20% of the fund’s total assets. The fund may also invest up to 10% of its total assets in preferred stocks.

The fund may invest all of its assets in derivative instruments, such as options, futures contracts or swap agreements. The fund may lend its portfolio securities to brokers, dealers and other financial institutions to earn income. The fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls).

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

What is Duration?

Duration is a weighted measure of the length of time a bond fund will repay its principal and interest. It is a calculation of the percentage change in the fund’s value if interest rates move up or down in 1% increments. Unlike maturity, duration takes into account interest payments that occur throughout the course of holding the bonds.

This fund is non-diversified.

What is a Non-Diversified Fund?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the fund generally may not have more than 25% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented

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volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Interest Rate

Debt securities have varying levels of sensitivity to changes in interest rates. In general, the price of a debt security tends to fall when interest rates rise and can rise when interest rates fall. Securities with longer maturities and mortgage securities can be more sensitive to interest rate changes. In other words, the longer the maturity of a security, the greater the impact a change in interest rates could have on the security’s price. In addition, short term and long term interest rates do not necessarily move in the same amount or the same direction. Short term securities tend to react to changes in short term interest rates, and long term securities tend to react to changes in long term interest rates. Inflation protected debt securities may react differently from other types of debt securities and tend to react to changes in “real” interest rates. Real interest rates represent nominal (stated) interest rates reduced by the expected impact of inflation.

In general, the price of an inflation protected debt security can fall when real interest rates rise, and can rise when real interest rates fall. Interest payments on inflation protected debt securities can be unpredictable and will vary as the principal and/or interest is adjusted for inflation.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be

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illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Leveraging

When the fund engages in transactions that have a leveraging effect on the fund’s portfolio, the value of the fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the fund would otherwise have. The fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause the fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-High-Yield Debt Securities

High yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High yield securities are not generally meant for short-term investing.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting a fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

-Tax Consequences

Adjustments for inflation to the principal amount of an inflation indexed bond may give rise to original issue discount, which will be includable in the fund’s gross income. Please see the section entitled “Shareholder Information – Distributions and Taxes” of this prospectus.

-CPIU Measurement

The CPIU is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. There can be no assurance that the CPIU will accurately measure the real rate of inflation in the prices of goods and services.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

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-Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is a possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

-Non-Diversification

Focusing investments in a small number of issuers, industries or foreign currencies increases risk. Because the fund is non-diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified fund might be.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Barclays Capital (formerly Lehman Brothers) U.S. TIPS Index (“BCUS TIPS Index”), a widely recognized, unmanaged index of market performance that is comprised of U.S. Treasury Inflation Linked Index securities. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		3/31/2008		5.65	%
Worst Quarter:		9/30/2008		(5.16)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(3.67)%		2.62%
Return after taxes on distributions3	(5.03)%		0.98%
Return after taxes on distributions and sale of fund shares3	(2.34)%		1.30%
BCUS TIPS Index (reflects no deduction for fees, expenses, or taxes)	(2.36)%		3.25%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 8, 2004.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

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Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.67%
Distribution and service (12b-1) fees	N/A
Other expenses	0.07%
Total annual fund operating expenses	0.74%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	76	$	237	$	411	$	918

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.70%
Over $250 million up to $750 million	0.65%
Over $750 million	0.60%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.67% of the fund’s average daily net assets.

Sub-Adviser:

Pacific Investment Management Company LLC (“PIMCO”)

840 Newport Center Drive

Newport Beach, California 92660

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly from TAM at the annual rate of 0.25% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

Mihir Worah is an Executive Vice President, portfolio manager and member of the government and derivatives desk. He joined PIMCO in 2001 as a member of the analytics team and worked on term structure modeling and options pricing. Previously he was a post-doctoral research associate at the University of California, Berkeley, and the Stanford Linear Accelerator Center, where he built models to explain the difference between matter and anti-matter. He has a Ph.D. in theoretical physics from the University of Chicago and is the author of numerous scientific papers.

PIMCO has provided investment advisory services to various clients since 1971.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

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Transamerica JPMorgan International Bond

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica JPMorgan International Bond is to seek high total return by investing in high-quality, non-dollar denominated government and corporate debt securities of foreign issuers.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, J. P. Morgan Investment Management Inc. (“JPMorgan”), seeks to achieve this objective by investing at least 80% of the fund’s net assets in high-quality bonds (debt securities with outstanding maturities of at least one year, under normal market conditions). A bond is deemed to be “high-quality” if it has a rating of AA-or higher from Standard & Poor’s Corporation (“S&P”) or Aa3 or higher from Moody’s Investors Service, Inc. (“Moody’s”) (or is an unrated security determined to be of comparable quality by the sub-adviser). In the case of split-rated securities, the sub-adviser will apply the highest of the ratings from S&P, Moody’s and any other nationally recognized rating agency when assigning credit ratings to the fixed-income securities in the fund. If the credit quality of an investment declines after initial purchase, the fund may continue to hold the investment at the discretion of the sub-adviser. Under normal market conditions, the fund will primarily invest in government and corporate debt securities of issuers that are economically tied to a number of countries throughout the world and expects to be invested in more than three different foreign countries. The fund may also invest up to 10% of its assets in emerging markets debt securities.

JPMorgan determines whether to buy and sell securities for the fund by using a combination of fundamental research and bond and currency valuation models, including:

-   Economic/Political Fundamentals. JPMorgan evaluates each country’s economic climate and political discipline for controlling deficits and inflation.

-   Expected Return. Using economic forecasts, JPMorgan projects the expected return for each country.

-   Relative Value. By contrasting expected risks and returns for investments in each country, JPMorgan selects those countries expected to produce the best return at reasonable risk.

Generally, the fund will purchase only bonds denominated in foreign currencies. The fund generally limits its use of hedging strategies that may minimize the effect of currency fluctuations. However, the fund may hedge up to 25% of its total assets into U.S. dollars when the portfolio manager considers the dollar to be attractive relative to foreign currencies.

The fund also may invest in options, futures contracts, options on futures contracts, and swap agreements, provided that such investments are in keeping with the fund’s investment objective.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

This fund is non-diversified.

What is a Non-Diversified Fund?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the fund generally may not have more than 25% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for

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dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Country, Sector or Industry Focus

To the extent the fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the single country, sector or industry than if the fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, technology companies involve risks due to factors such as the rapid pace of product change, technological developments and new competition. Their stocks historically have been volatile in price, especially over the short term, often without regard to the merits of individual companies. Banks and financial institutions are subject to potentially restrictive governmental controls and regulations that may limit or adversely affect profitability and share price. In addition, securities in that sector may be very sensitive to interest rate changes throughout the world.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its

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investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

-Non-Diversification

Focusing investments in a small number of issuers, industries or foreign currencies increases risk. Because the fund is non-diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified fund might be.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the JPMorgan Government Bond Index ex-U.S. unhedged (“JPMGBI”), a widely recognized, unmanaged index of market performance that measures the performance of leading government bond markets based on total return in U.S. currency. By including only traded issues, the JPMGBI provides a realistic measure of market performance for investors in international bonds. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		3/31/2008		10.63	%
Worst Quarter:		6/30/2008		(5.66)	%

Average annual total returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	8.09%		8.31%
Return after taxes on distribution3	5.49%		6.55%
Return after taxes on distributions and sale of fund shares3	5.44%		6.11%
JPMGBI (reflects no deduction for fees, expenses, or taxes)	11.39%		10.16%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I shares commenced operations on December 6, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

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Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.51%
Distribution and service (12b-1) fees	N/A
Other expenses	0.10%
Total annual fund operating expenses	0.61%
Expense reductionb	0.00%
Net operating expenses	0.61%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 0.75% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.75% of average daily net assets, excluding certain extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	62	$	195	$	340	$	762

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $100 million	0.55%
Over $100 million up to $250 million	0.52%
Over $250 million up to $500 million	0.51%
Over $500 million up to $1 billion	0.50%
Over $1 billion	0.47%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.51% of the fund’s average daily net assets.

Sub-Adviser:

J. P. Morgan Investment Management Inc. (“JPMorgan”)

245 Park Avenue

New York, New York 10167

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $100 million	0.20%
Over $100 million up to $250 million	0.17%
Over $250 million up to $500 million	0.16%
Over $500 million up to $1 billion	0.15%
Over $1 billion	0.12%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Manager:

Jon B. Jonsson, managing director, is the head of portfolio management and lead portfolio manager for London multi-sector strategies, working with the macro team and sector teams to deliver account-specific portfolio strategy. An employee since 1998, Mr. Jonsson was previously a senior quantitative analyst responsible for preparing reports on relative value, conceiving and analyzing trade ideas, and designing analytical models supporting portfolio management strategies and decisions. He holds a B.S. in applied mathematics from University of Iceland and an M.S. with specialization in financial engineering from New York University’s Stern School of Business.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

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Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica PIMCO Total Return is to seek maximum total return consistent with preservation of capital and prudent investment management.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Pacific Investment Management Company LLC (“PIMCO”), seeks to achieve this objective by investing principally in:

-   Fixed-Income Securities

PIMCO invests, under normal circumstances, at least 65% of the fund’s net assets in a diversified portfolio of fixed-income securities of varying maturities. The average duration of this fund normally varies within two years (plus or minus) of the duration of the Barclays Capital U.S. Aggregate Index, which as of December 31, 2008, was 3.71 years. For a discussion of fixed-income securities, please see the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

PIMCO invests the fund’s assets primarily in investment grade debt securities, but may invest up to 10% of the total assets in high yield securities (“junk bonds”) rated B or higher by Moody’s, Fitch, or S&P or, if unrated, determined by PIMCO to be of comparable quality. PIMCO may invest up to 30% of the fund’s total assets in securities denominated in foreign currencies, and may invest beyond this limit in U.S. dollar-denominated securities of foreign issuers. The fund may invest up to 15% of its total assets in securities and instruments that are economically tied to emerging markets countries. Foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) normally will be limited to 20% of the fund’s total assets. The fund may also invest up to 10% of its total assets in preferred stocks.

The fund may invest all of its assets in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities. The fund may lend its portfolio securities to brokers, dealers and other financial institutions to earn income. The fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls). The “total return” sought by the fund consists of income earned on the fund’s investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held

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or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting a fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

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-Leveraging

When the fund engages in transactions that have a leveraging effect on the fund’s portfolio, the value of the fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the fund would otherwise have. The fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause the fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-High-Yield Debt Securities

High yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High yield securities are not generally meant for short-term investing.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Barclays Capital (formerly Lehman Brothers) U.S. Aggregate Index (“BCUSA Index”), a widely recognized, unmanaged index of market performance that covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. The table shows average annual total returns for Class I shares of the

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fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2007		4.75%
Worst Quarter:		9/30/2008		(3.40)%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(2.12)%		3.75%
Return after taxes on distributions3	(4.75)%		1.76%
Return after taxes on distributions and sale of fund shares3	(1.39)%		2.07%
BCUSA Index (reflects no deductions for fees, expenses or taxes)	5.24%		5.81%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 15, 2005.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.66%
Distribution and service (12b-1) fees	N/A
Other expenses	0.09%
Total annual fund operating expenses	0.75%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	77	$	240	$	417	$	930

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.675%
Over $250 million up to $750 million	0.65%
Over $750 million	0.60%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.66% of the fund’s average daily net assets.

Sub-Adviser:

Pacific Investment Management Company LLC (“PIMCO”)

840 Newport Center Drive

Newport Beach, California 92660

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.25% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

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Portfolio Manager:

Chris P. Dialynas, a Managing Director, portfolio manager, and senior member of PIMCO’s investment strategy group, is primarily responsible for the day-to-day management of the fund’s assets. He joined PIMCO in 1980. Mr. Dialynas has written extensively and lectured on the topic of fixed-income investing. He served on the Editorial Board of The Journal of Portfolio Management and was a member of the Fixed-Income Curriculum Committee of the Association for Investment Management and Research. He has twenty-nine years of investment experience and holds a bachelor’s degree in economics from Pomona College, and an M.B.A. in finance from The University of Chicago Graduate School of Business.

PIMCO has provided investment advisory services to various clients since 1971.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the fund.

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Transamerica UBS Dynamic Alpha

Summary of Risks and Returns

Objective

­ ­

The investment objective of Transamerica UBS Dynamic Alpha is to maximize total return, consisting of capital appreciation and current income.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, UBS Global Asset Management (Americas) Inc. (“UBS”), seeks to achieve this objective by investing principally in equity and fixed-income securities of U.S. and foreign issuers and other financial instruments to gain exposure to global equity, global fixed-income and cash equivalent markets including global currencies.

The fund is a multi-asset fund. The asset classes in which the fund may invest include, but are not limited to, the following:

-   U.S. and non-U.S. equity securities (including emerging market equity securities)

-   U.S. and non-U.S. fixed-income securities (including U.S. high-yield, fixed-income and emerging market debt)

-   cash equivalents

The fund attempts to generate positive returns and manage risk through asset allocation, currency management techniques and security selection. These decisions are integrated with analysis of global market and economic conditions. The fund intends to use financial futures, forward agreements, options, swaps and other derivatives as part of its asset/market allocation strategies to the extent permitted by the Investment Company Act of 1940. The fund may establish net short or net long positions for individual markets, currencies and securities.

In employing its investment strategies for the fund, UBS attempts to achieve a total rate of return for the fund that meets or exceeds 5% per year on a real (i.e., inflation-adjusted) basis and net of management fees over rolling five-year time horizons. Neither TAM nor UBS represents or guarantees that the fund will meet this total return goal.

Asset allocation decisions are tactical, based upon the portfolio manager’s assessment of valuations and prevailing market conditions in the United States and abroad. Investments also may be made in selected sectors of these asset classes.

Within the equity portion of the fund’s portfolio, UBS selects equity securities whose fundamental values it believes are greater than their market prices. In this context, the fundamental value of a given security is UBS’s assessment of what a security is worth. UBS bases its estimates of value upon economic, industry and company analysis, as well as upon a company’s management team, competitive advantage and core competencies. It then compares its assessment of a security’s value against the prevailing market prices, with the aim of constructing a portfolio of stocks with attractive relative price/value characteristics.

For each security under analysis, the fundamental value estimate is compared to the company’s current market price to ascertain whether a valuation anomaly may exist. A stock with a market price below (above) the estimated intrinsic or fundamental value would be considered a long (short) candidate for inclusion in the fund’s portfolio. This comparison between price and intrinsic or fundamental value allows comparisons across industries and countries.

While the investment decisions of UBS with respect to the equity portion of the fund’s portfolio are based primarily on price/value discrepancies as identified by its fundamental valuation process, under certain circumstances UBS may utilize growth-oriented strategies within its US equity asset class for a portion of the allocation; but only after subjecting such strategies to a rigorous due diligence process to judge their suitability for the fund. To invest in growth equities, UBS will seek to invest in companies that possess a dominant market position and franchise, a major technological edge or a unique competitive advantage, in part by using a proprietary quantitative screening system that ranks stocks using a series of growth, valuation and momentum metrics.

In selecting fixed-income securities, UBS uses an internally developed valuation model that quantifies return expectations for all major U.S. and foreign bond markets. The model employs a qualitative credit review process that assesses the ways in which macroeconomic forces (such as inflation, risk premiums and interest rates) may affect industry trends. Against the output of this model, UBS considers the viability of specific debt securities compared to certain qualitative factors, such as management strength, market position, competitive environment and financial flexibility, as well as certain quantitative factors, such as historical operating results, calculation of credit ratios, and expected future outlook. The fund’s fixed-income investments may reflect a broad range of investment maturities, qualities and sectors, including high-yield (lower-rated) securities and convertible debt securities.

UBS’s fixed-income strategy combines judgments about the absolute value of the fixed-income universe and the relative value of issuer sectors, maturity intervals, duration of securities, quality and coupon segments and specific circumstances facing the issuers of fixed-income securities. Duration measures a fixed-income security’s price sensitivity to interest rates by indicating the approximate change in a fixed-income security’s price if interest rates move up or down in 1% increments. Duration management involves adjusting the sensitivity to interest rates of the holdings within a country. UBS manages duration by choosing a maturity mix that provides opportunity for appreciation while also attempting to limit interest rate risks.

The fund’s investments in equity securities may include, but are not limited to, common stock and preferred stock of issuers in developed nations (including the United States) and emerging markets. Equity investments may include large, intermediate and small capitalization companies.

The fund’s investments in fixed-income securities may include, but are not limited to, debt securities of governments throughout the world (including the United States), their agencies and instrumentalities, debt securities of corporations and supranationals, inflation protected securities, convertible bonds, mortgage-backed securities, asset-backed securities, equipment trusts and other collateralized debt securities. These securities may be issued by issuers located in both developed (including the United States) and emerging markets.

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To the extent permitted by applicable law, the fund may invest a portion of its assets in open-end investment companies advised by UBS to gain exposure to various asset classes, including but not limited to emerging market, small cap and high-yield asset classes. The fund does not pay fees in connection with its investment in the investment companies advised by UBS, but may pay expenses associated with such investments.

The fund may have high portfolio turnover.

To the extent permitted by the Investment Company Act of 1940, the fund may borrow money from banks to purchase investments for the fund. The fund will adhere to applicable asset coverage requirements for all such borrowings.

The fund is non-diversified.

What is a Non-Diversified Fund?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the fund generally may not have more than 25% of its total assets invested in any one issuer, with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The fund may underperform other equity funds that use different investing styles. The fund may also underperform other equity funds using the value style.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Small- or Medium-Sized Company

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

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-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

-Prepayment

Borrowers may pay back principal before the scheduled due date. Borrowers may find it advantageous to prepay principal due to a decline in interest rates or an excess in cash flow. Such prepayments may require the fund to replace a corporate loan, corporate debt security or other investment with a lower yielding security. This may adversely affect the fund’s net asset value.

-U.S. Government Agency Obligations

Government agency obligations have different levels of credit support and, therefore, different degrees of credit risk. Securities issued by agencies and instrumentalities of the U.S. government that are supported by the full faith and credit of the United States, such as the Federal Housing Administration and Ginnie Mae, present little credit risk. Other securities issued by agencies and instrumentalities sponsored by the U.S. government that are supported only by the issuer’s right to borrow from the U.S. Treasury, subject to certain limitations, such as securities issued by Federal Home Loan Banks and securities issued by agencies and instrumentalities sponsored by the U.S. government that are supported only by the credit of the issuing agencies, such as Freddie Mac and Fannie Mae, are subject to a greater degree of credit risk.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may

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be required to establish special custody or other arrangements before investing.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Short Sales

A short sale may be effected by selling a security that the fund does not own. In order to deliver the security to the purchaser, the fund borrows the security, typically from a broker/dealer or an institutional investor. The fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the fund would incur a loss; conversely, if the price declines, the fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the fund held only long positions. The fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.

A short sale may also be effected “against the box” if, at all times when the short position is open, the fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the fund would forego the potential realization of the increased value of the shares sold short.

-Leveraging

When the fund engages in transactions that have a leveraging effect on the fund’s portfolio, the value of the fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the fund would otherwise have. The fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause the fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

-Country, Sector or Industry Focus

To the extent the fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the single country, sector or industry than if the fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, technology companies involve risks due to factors such as the rapid pace of product change, technological developments and new competition. Their stocks historically have been volatile in price, especially over the short term, often without regard to the merits of individual companies. Banks and financial institutions are subject to potentially restrictive governmental controls and regulations that may limit or adversely affect profitability and share price. In addition, securities in that sector may be very sensitive to interest rate changes throughout the world.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When

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the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

-Non-Diversification

Focusing investments in a small number of issuers or industries increases risk. Because the fund is non-diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified fund might be.

-Active Trading

The fund is actively managed and, under appropriate circumstances, may purchase and sell securities without regard to the length of time held. A high portfolio turnover rate may increase transaction costs and generate a high level of taxable short term capital gains, both of which may negatively impact the fund’s performance.

-Investing in Other Funds

To the extent that the fund invests in other funds, the investment performance of the fund is affected by the investment performance of the underlying funds. Through its investment in the underlying funds, the fund is subject to the risks of the underlying funds’ investments and subject to the underlying funds’ expenses.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks,” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Consumer Price Index +5%, a widely recognized, unmanaged index of market performance that is based on the aggregate price of a weighted “market basket” of goods, including food, housing, apparel, transportation and medical care. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		3/31/2008		2.38	%
Worst Quarter:		12/31/2008		(15.48)	%

Average Annual Total Returns as of 12/31/08¹

	1 Year			Life of Class2
Return before taxes		(18.71)	%		(10.93)	%
Return after taxes on distributions3		(24.29)	%		(14.21)	%
Return after taxes on distributions and sale of fund shares3		(8.61)	%		(10.19)	%
Consumer Price Index +5% (reflects no deduction for fees, expenses, or taxes)		5.21	%		7.30	%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.

²  Class I commenced operations on January 3, 2007.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	1.37%
Distribution and service (12b-1) fees	N/A
Other expenses	0.14%
Total annual fund operating expenses	1.51%
Expense reductionb	0.00%
Net operating expenses	1.51%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010 to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.65% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses

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reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.65% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	154	$	477	$	824	$	1,802

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information — Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $150 million	1.40%
Over $150 million up to $300 million	1.30%
Over $300 million	1.20%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 1.37% of the fund’s average daily net assets.

Sub-Adviser:

UBS Global Asset Management (Americas) Inc. (“UBS”)

One North Wacker Drive

Chicago, IL 60606

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $150 million	0.85%
Over $150 million up to $300 million	0.75%
Over $300 million	0.65%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Curt Custard, Edwin Denson and Thomas Clarke are the lead portfolio managers for the fund. Messrs. Custard, Denson and Clarke have access to certain members of the fixed-income and equities investment management teams, each of whom is allocated a specified portion of the portfolio over which he or she has independent responsibility for research, security selection, and portfolio construction. The team members also have access to additional portfolio managers and analysts within the various asset classes and markets in which the fund invests. Mr. Custard and Mr. Denson, as senior portfolio managers for the fund, have responsibility for allocating the portfolio among the various managers and analysts, occasionally implementing trades on behalf of analysts on the team and reviewing the overall composition of the portfolio to ensure its compliance with its stated investment objectives and strategies. Mr. Clarke, as senior portfolio manager for the fund, has responsibility for setting the currency strategies and making all currency decisions for the fund, occasionally implementing trades on behalf of analysts on the team and reviewing the overall composition of the portfolio to ensure its compliance with its stated investment objectives and strategies.

Curt Custard, CFA, is a Managing Director and has been Head of Global Investment Solutions at UBS since March 2008. Mr. Custard is also a member of the UBS Global Asset Management Executive Committee. Prior to joining UBS, Mr. Custard was global head of multi-asset solutions at Schroders since 2004. Prior to this, Mr. Custard was chief investment officer of the multi-asset and balanced business of Allianz Global Investors in London since 2000. Mr. Custard has been a portfolio manager of the fund since 2008.

Edwin Denson is a Managing Director and a member of the Asset Allocation Analysis and Strategy team at UBS and has been a senior asset allocation analyst at UBS since 2005. Mr. Denson has been an investment professional at UBS Since 2001. Mr. Denson has been involved with the management of the fund’s portfolio since its inception and assumed his present role in 2007.

Thomas Clarke is a Managing Director and Head of Currency Analysis and Strategy at UBS. Mr. Clarke has been an investment professional at UBS since 2000. Mr. Clarke has been involved with the management of the fund’s portfolio since its inception and assumed his present role in 2007.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of fund shares.

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Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Flexible Income is to seek to provide as high a level of current income for distribution as is consistent with prudent investment, with capital appreciation as only a secondary objective.

Principal Strategies and Policies

­ ­

The fund’s sub adviser, Transamerica Investment Management, LLC (“TIM”), uses a “bottom-up” approach to investing and builds the fund’s portfolio one company at a time.

The fund will generally invest at least 80%, of net assets in a broad range of fixed-income securities including:

-   U.S. Government and foreign government bonds and notes (including emerging market countries);

-   Mortgage-backed, commercial mortgage-backed, and asset-backed securities (including collateralized mortgage obligations);

-   Corporate bonds of issuers in the U.S. and foreign countries (including emerging market countries);

-   Convertible bonds and other convertible securities;

-   Bank loans and loan participations;

-   Structured notes; and

-   Preferred securities.

With respect to these investments:

1.  Under normal market conditions, at least 50% of the value of the fund’s assets will be invested in (a) debt securities which have a rating within the four highest grades as determined by Moody’s Investors Service, Inc. (“Moody’s”) (Aaa, Aa, A or Baa) or Standard & Poor’s Corporation (“S&P”) (AAA, AA, A or BBB); (b) securities issued or guaranteed by the United States Government or its agencies or instrumentalities; (c) commercial paper rated Prime, Prime-1 or Prime-2 by NCO/Moody’s Commercial Paper Division, Moody’s, or A-1 or A-2 by S&P; or (d) cash or cash equivalents; (see Appendix B of this prospectus for a description of these ratings);

2.  Up to 50% of the value of the fund’s assets may be invested in other debt securities which are not rated by Moody’s or S&P or, if so rated, are not within the grades or ratings referred to above; and

3.  The fund may engage in options and futures transactions, foreign currency transactions, and swap transactions.

The fund may invest up to 20% of its total assets in equity securities, such as common stocks, rights, warrants, or preferred stock.

Ordinarily, the fund will purchase debt securities having call or refunding protection or securities which are not considered by the fund likely to be called or refunded in the near term, in order to preserve initial annual yields to the fund.

The fund may invest in securities of any maturity and does not have a target average duration.

What is “Bottom Up” Analysis?

When a sub-adviser uses a “bottom up” approach, it looks primarily at individual companies against the context of broader market factors.

-Short Term Trading

The fund may use short term trading as a means of managing its portfolio to achieve its investment objectives. As used herein, “short term trading” means selling securities held for a relatively brief period of time, usually less than three months. Short term trading will be used by the fund primarily in two situations:

(a)	Market Developments.  A security may be sold to avoid depreciation in what the fund anticipates will be a market decline (a rise in interest rates), or a security may be purchased in anticipation of a market rise (a decline in interest rates) and later sold; and
(b)	Yield Disparities.  A security may be sold and another of comparable quality purchased at approximately the same time in order to take advantage of what the fund believes is a temporary disparity in the normal yield relationship between the two securities (a “yield disparity”).

Short-term trading to take advantage of a yield disparity may be undertaken even if levels of interest rates remain unchanged. Yield disparities occur frequently for reasons not directly related to the investment quality of the respective issues or the general movement of interest rates, but may result from changes in the overall demand for or supply of various types of bonds, changes in the investment objectives or the cash requirements of investors, and the requirements of dealers to correct long or short inventory positions.

Short-term trading techniques will be used principally in connection with higher quality, non convertible debt securities, which are often better suited for short term trading because the market in such securities is generally of greater depth and offers greater liquidity than the market in debt securities of lower quality. It is anticipated that short term trading will be less applicable to any convertible securities which the fund may own, since such securities will usually be purchased when the fund believes that the market value of the underlying equity security is likely to appreciate over a period of time.

The fund will engage in short term trading if it believes the transactions, net of costs (including commission, if any), will result in improving the appreciation potential or income of its portfolio. Whether any improvement will be realized by short term trading will depend upon the ability of the fund to evaluate particular securities and anticipate relevant market factors, including interest rate trends and variations from such trends. Short term trading such as that contemplated by the fund places a premium upon the ability of the fund to obtain relevant information, evaluate it promptly, and take advantage of its evaluations by completing transactions on a favorable basis. By virtue of short term trading, the fund may engage in greater buying and selling activity than investment companies which are not permitted to employ such a policy in seeking their investment objectives. Such activity can result in greater costs of operation than is the case with other investment companies, and risks of loss in portfolio value could be greater. Accordingly, an investment in fund shares may be more speculative than an investment in shares

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of an investment company which cannot engage in short term trading.

The sub-adviser may sell the fund’s securities when its expectations regarding market interest rates change or the quality or return changes on investment.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U. S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage

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holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

-Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Loans

The fund may invest in certain commercial loans, including loans generally known as “syndicated bank loans,” by acquiring participations or assignments in such loans. The lack of a liquid secondary market for such securities may have an adverse impact on the value of the securities and a fund’s ability to dispose of particular assignments or participations when necessary to meet redemptions of shares or to meet the fund’s liquidity needs. When purchasing a participation, a fund may be subject to the credit risks of both the borrower and the lender that is selling the participation. When purchasing a loan assignment, a fund acquires direct rights against the borrowers, but only to the extent of those held by the assigning lender. Investment in loans through a direct assignment from the financial institution’s interests with respect to a loan may involve additional risks to a fund. It is also unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive regulatory guidance, a fund relies on its sub-adviser’s research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the fund.

-Structured Notes

The fund may invest in various types of structured instruments, including securities that have demand, tender or put features, or interest rate rest features. Structured instruments may take the form of participation interests or receipts in underlying securities or other assets, and in some cases are backed by a financial institution serving as a liquidity provider. Some of these instruments may have an interest rate swap feature which substitutes a floating or variable interest rate for the fixed interest rate on an underlying security, and some may be asset-backed or mortgage-backed securities. Structured instruments are a type of derivative instrument and the payment and credit qualities of these instruments derive from the assets embedded in the structure from which they are issued.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell

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or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-High-Yield Debt Securities

High yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High yield securities are not generally meant for short-term investing.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Stocks

Stocks may be volatile—their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

-Active Trading

The fund is actively managed and, under appropriate circumstances, may purchase and sell securities without regard to the length of time held. A high portfolio turnover rate may increase transaction costs and generate a high level of taxable short term capital gains, both of which may negatively impact the fund’s performance.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Barclays Capital (formerly Lehman Brothers) U.S. Aggregate Index (“BCUSA Index”), a widely recognized, unmanaged index of market performance that covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2006		4.14	%
Worst Quarter:		12/31/2008		(12.67)	%

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Transamerica Flexible Income

  Average Annual Total Returns as of 12/31/08¹

	1 Year			Life of Class2
Return before taxes		(18.34)	%		(2.62)	%
Return after taxes on distributions3		(20.13)	%		(4.44)	%
Return after taxes on distributions and sale of fund shares3		(11.76)	%		(3.11)	%
BCUSA Index (reflects no deduction for fees, expenses, or taxes)		5.24	%		4.72	%
Barclays Capital U.S. Government/Credit Bond Index (reflects no deduction for fees, expenses or taxes)4		5.70	%		4.74	%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 8, 2004.
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

⁴  This index served as the fund’s benchmark prior to January 1, 2009, at which time it was replaced with the BCUSA Index. This benchmark index change was made to more accurately reflect the principal strategies and policies of the fund.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.71%
Distribution and service (12b-1) fees	N/A
Other expenses	0.06%
Total annual fund operating expenses	0.77%
Expense reductionb	0.00%
Net operating expenses	0.77%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.50% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.50% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operati ng expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	79	$	246	$	428	$	954

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.725%
Over $250 million up to $350 million	0.675%
Over $350 million	0.625%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.71% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.30%
Over $250 million up to $350 million	0.25%
Over $350 million	0.20%

less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

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Transamerica Flexible Income

Portfolio Managers:

Kirk J. Kim

Portfolio Manager (lead)

Kirk J. Kim is a Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. He holds a B.S. in Finance from the University of Southern California. Mr. Kim has 13 years of investment experience.

Peter O. Lopez

Portfolio Manager (lead)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

Brian W. Westhoff, CFA

Portfolio Manager (lead)

Brian W. Westhoff is a Portfolio Manager at TIM. Prior to joining TIM in 2003, Mr. Westhoff worked as an Equity Research Intern with Credit Suisse Asset Management, as a Fixed Income Investment Analyst at St. Paul Companies, and as an Argentine/Oil and Gas Equity Research Intern with Merrill Lynch in Argentina. He holds an M.B.A. from Thunderbird, the Garvin Graduate School of International Management, and received a B.S. in Business Administration from Drake University. Mr. Westhoff has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

Derek S. Brown, CFA

Portfolio Manager (co)

Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.

Greg D. Haendel, CFA

Portfolio Manager (co)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

171

Transamerica High Yield Bond

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica High Yield Bond is to seek a high level of current income by investing in high-yield debt securities.

Principal Strategies and Policies

­ ­

The fund’s sub adviser, AEGON USA Investment Management, LLC (“AUIM”), seeks to achieve this objective by principally investing at least 80% of the fund’s net assets in a diversified portfolio of:

-   high-yield/high risk bonds (commonly known as “junk bonds”)

These junk bonds are high risk debt securities rated in medium or lower rating categories or determined by AUIM to be of comparable quality.

Please see Appendix B for a description of bond ratings.

AUIM’s strategy is to achieve yields as high as possible while managing risk. AUIM uses a “top down/bottom up” approach in managing the fund’s assets. The “top down” approach is to adjust the risk profile of the fund. AUIM analyzes four factors that affect the movement of fixed-income bond prices which include: economic indicators; technical indicators that are specific to the high yield market; investor sentiment and valuation. Analysis of these factors assists AUIM in its decisions regarding the fund’s portfolio allocations.

AUIM has developed a proprietary credit model that is the foundation of its “bottom up” analysis. The model tracks historical cash flow numbers and calculates credit financial ratios. Because high yield companies are of higher financial risk, AUIM does a thorough credit analysis of all companies in the fund’s portfolio, as well as all potential acquisitions.

Each potential buy and sell candidate is analyzed by AUIM from both the “top down” and “bottom up” strategies. An industry may look attractive in one area, but not the other. They can review the results of their analysis and decide whether or not to proceed with a transaction.

AUIM may sell fund securities when it determines there are changes in economic indicators, technical indicators or valuation.

What is “Bottom Up” Analysis?

When a sub-adviser uses a “bottom up” approach, it looks primarily at individual companies against the context of broader market factors.

What is a “Top Down” Approach?

When using a “top down” approach, the fund manager looks first at broad market factors, and on the basis of those market factors, chooses certain sectors, or industries within the overall market. The manager then looks at individual companies within those sectors or industries.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating

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Transamerica High Yield Bond

downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-High-Yield Debt Securities

High yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High yield securities are not generally meant for short-term investing.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Merrill Lynch High Yield Cash Pay Index (“ML High Yield Index”), a widely recognized, unmanaged index of market performance that is a market value-weighted index of all domestic and Yankee high-yield bonds. Issues included in the index have maturities of one year or more and have a credit rating lower than Baa3/BBB, but are not in default. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		12/31/2006		4.19	%
Worst Quarter:		12/31/2008		(16.73)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(24.98)%		(2.94)%
Return after taxes on distributions3	(27.35)%		(5.43)%
Return after taxes on distributions and sale of fund shares3	(15.97)%		(3.65)%
ML High Yield Index (reflects no deduction for fees, expenses, or taxes)	(26.21)%		(3.01)%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 8, 2004
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

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Transamerica High Yield Bond

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.59%
Distribution and service (12b-1) fees	N/A
Other expenses	0.06%
Total annual fund operating expenses	0.65%
Expense reductionb	0.00%
Net operating expenses	0.65%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser Transamerica Asset Management, Inc. (“TAM”) through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.24% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.24% of average daily net assets, excluding certain extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of investing in other mutual funds It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	66	$	208	$	362	$	810

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $400 million	0.59%
Over $400 million up to $750 million	0.575%
Over $750 million	0.55%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.59% of the fund’s average daily net assets.

Sub-Adviser:

AEGON USA Investment Management, LLC (“AUIM”)

4333 Edgewood Road NE

Cedar Rapids, Iowa 52499-5338

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Up to $400 million	0.28%
Over $400 million up to $750 million	0.25%
Over $750 million	0.20%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

David R. Halfpap, CFA

Senior Vice President — Portfolio Manager

Iowa State University, B.S. 1974, Mr. Halfpap joined AUIM in 1975. He is responsible for formulating and directing portfolio strategy and management for Transamerica High Yield Bond, the fixed-income portfolio of the AEGON USA Inc. Pension Trust and AEGON Financial Partners. He is a member of the Portfolio Managers Group and the Pension Investment Policy Committee with asset management experience spanning equities, high yield bonds and investment grade corporate bonds. Mr. Halfpap is a member of the CFA Institute and a former director of the Iowa Society of the Institute.

Bradley J. Beman, CFA, CPA

Senior Vice President, Director — High Yield

University of Northern Iowa, B.A. 1987; University of Iowa, M.B.A. 1991, Mr. Beman joined AUIM in 1988 after working in various capacities with AEGON USA and Life Investors. Prior to his current role, Mr. Beman held various investment responsibilities ranging from Fixed Income Analyst to Director of Credit Research. Mr. Beman currently manages the Public High Yield Portfolio and is co-portfolio manager of Transamerica High Yield Bond. He also provides oversight for additional asset classes within the Public Fixed Income area.

Benjamin D. Miller, CFA

High Yield Portfolio Manager

University of Northern Iowa, B.A.; University of Iowa, M.B.A. Mr. Miller joined AUIM in 1993 working as a Private Placement research analyst. Prior to his current role, Mr. Miller worked in various credit research roles in the corporate bond department at AUIM. His current responsibilities include high yield trading and portfolio management for the AEGON USA High Yield General Portfolio, as well as Transamerica High Yield Bond.

AUIM has provided investment advisory services to various clients since 1989.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

174

Transamerica Short-Term Bond

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Short-Term Bond is to seek a high level of income consistent with minimal fluctuation in principal value and liquidity.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve this objective by investing in a diversified portfolio as follows:

-   short-term and intermediate-term investment-grade corporate obligations

-   obligations issued or guaranteed by the U.S. and foreign governments and their agencies and instrumentalities

-   mortgage-backed securities

-   asset-backed securities.

TIM may also invest in bank obligations, collateralized mortgage obligations, foreign securities and hybrids. Normally, the fund will invest at least 80% of its net assets in fixed-income securities.

Bank obligations purchased for the fund are limited to U.S. or foreign banks with total assets of $1.5 billion or more. Similarly, savings association obligations purchased for the fund are limited to U.S. savings association obligations issued by U.S. savings banks with total assets of $1.5 billion or more. Foreign government securities purchased for the fund must be U.S. dollar-denominated and issued by foreign governments, agencies or instrumentalities. These foreign obligations must also meet the same quality requirements as U.S. obligations. The commercial paper and other short-term corporate obligations TIM buys for the fund are determined by the fund manager to present minimal credit risks.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perf orm as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

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-Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Merrill Lynch U.S. Corporate & Government 1-3 Year Index (“MLUSCG 1-3 Year Index”), a widely recognized, unmanaged index of market performance that tracks the market performance of U.S. dollar-denominated, investment grade, corporate debt securities with a remaining term to final maturity of less than 3 years. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

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Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2006		2.08	%
Worst Quarter:		12/31/2008		(2.28)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year			Life of Class2
Return before taxes		(1.38)	%		2.10%
Return after taxes on distributions3		(2.89)	%		0.67%
Return after taxes on distributions and sale of fund shares3		(0.88)	%		0.97%
MLUSCG 1-3 Year Index (reflects no deduction for fees, expenses, or taxes)		4.69	%		4.24%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
2	Class I commenced operations on November 8, 2004
3	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.62%
Distribution and service (12b-1) fees	N/A
Other expenses	0.06%
Total annual fund operating expenses	0.68%
Expense reductionb	0.00%
Net operating expenses	0.68%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses excluding any distribution and service (12b-1) fee), exceed 0.85% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.85% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	69	$	218	$	379	$	847

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.65%
Over $250 million up to $500 million	0.60%
Over $500 million up to $1 billion	0.575%
Over $1 billion	0.55%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.62% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, California 90025

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Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Up to $250 million	0.25%
Over $250 million up to $500 million	0.20%
From $500 million up to $1 billion	0.175%
Over $1 billion	0.15%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Greg D. Haendel, CFA

Portfolio Manager (lead)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

Derek S. Brown, CFA

Portfolio Manager (co)

Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

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Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Loomis Sayles Bond is to seek high total investment return through a combination of current income and capital appreciation.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Loomis, Sayles & Company, L.P. (“Loomis”), seeks to achieve this objective by investing fund assets principally in fixed-income securities.

The fund normally invests at least 80% of its net assets in fixed-income securities, primarily in investment-grade fixed-income securities, although it may invest up to 35% of its assets in lower-rated fixed-income securities (“junk bonds”) and up to 20% of its assets in preferred stocks. Generally, at least 65% of the fund’s assets will be invested in investment grade securities rated BBB- or higher by Standard & Poor’s Ratings Group (“S&P”) or Baa3 by Moody’s Investors Service, Inc. (“Moody’s”), as determined at the time of purchase. The fund may invest in fixed-income securities of any maturity. The fund may also invest up to 10% of its assets in bank loans, which include senior secured and unsecured floating rate loans made by banks and other financial institutions to corporate customers. These loans generally will not be rated investment-grade.

Loomis performs extensive credit analyses, relying on its in-house team of more than 30 fixed-income analysts to cover a broad universe of industries, companies, and markets. The portfolio managers take advantage of these extensive resources to seek bonds trading at attractive levels from a risk/return perspective. In deciding which securities to buy and sell, Loomis considers, among other things, the financial strength of the issuer, current interest rates, expectations regarding general trends in interest rates, and comparisons of the level of risk associated with the potential return of those investments. Three themes typically drive the fund’s investment approach. First, the fund generally seeks securities of issuers whose credit profiles are improving. Second, the fund makes significant use of non-market related securities, which are securities that may not have a direct correlation with changes in interest rates. Loomis believes that the fund may generate positive returns by having a portion of assets invested in non-market related securities, rather than by relying primarily on changes in interest rates to produce returns. Third, Loomis analyzes different sectors of the economy and differences in the yields of various fixed income securities in an effort to find securities that it believes may produce attractive returns for the fund in comparison to their risk.

The fund may invest any portion of its assets in securities of Canadian issuers (denominated in any currency) and up to 20% of its assets in other foreign securities (excluding Canadian dollar denominated securities), including emerging market securities. The fund may invest without limit in obligations of supranational entities (e.g., the World Bank).

The fixed-income securities in which the fund may invest include without limitation: corporate securities, U.S. Government securities, commercial paper, zero coupon securities, mortgage-backed securities, stripped mortgage-backed securities, collateralized mortgage obligations, foreign currency denominated securities, asset-backed securities, when-issued securities, real estate investment trusts (“REITS”), Rule 144A securities, structured notes, repurchase agreements, and convertible securities. The fund may engage in options and futures transactions, foreign currency hedging transactions and swap transactions.

The fund may invest in structured notes, which are derivative debt instruments with principal and/or interest payments linked to the value of a commodity, a foreign currency, an index of securities, an interest rate, or other financial indicators (“reference instruments”). The payments on a structured note may vary based on changes in one or more specified reference instruments, such as a floating interest rate compared to a fixed interest rate, the exchange rates between two currencies or a securities or commodities index. A structured note may be positively or negatively indexed. For example, its principal amount and/or interest rate may increase or decrease if the value of the reference instrument increases, depending upon the terms of the instrument. The change in the principal amount payable with respect to, or the interest rate of, a structured note may be a multiple of the percentage change (positive or negative) in the value of the underlying reference instrument or instruments. Structured notes can be used to increase a fund’s exposure to changes in the value of assets or to hedge the risks of other investments that a fund holds. The fund may also invest in equity securities, including common stocks, preferred stocks and similar securities.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented

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volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher-quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

-Bank Loans

Bank loans in which the fund may invest include senior secured and unsecured floating rate loans made by banks and other financial institutions to corporate customers. Typically, these loans hold the most senior position in a borrower’s capital structure, may be secured by the borrower’s assets and have interest rates that reset frequently. These loans generally will not be rated investment-grade by the rating agencies. Economic downturns generally lead to higher non-payment and default rates and a senior loan could lose a substantial part of its value prior to a default. However, as compared to junk bonds, senior floating rate loans are typically senior in the capital structure and are often secured by collateral of the borrower. A fund’s investments in loans are subject to credit risk, and even secured bank loans may not be adequately collateralized. The interest rates of bank loans reset frequently, and thus bank loans are subject to interest rate risk. Most bank loans, like most investment-grade bonds, are not traded on any national securities exchange. Bank loans generally have less liquidity than investment-grade bonds and there may be less public information available about them. A fund may participate in the primary syndicate for a loan or it may also purchase loans from other lenders (sometimes referred to as loan assignments). A fund may also acquire a participation interest in another lender’s portion of the senior loan.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Preferred Stock

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to

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which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

-REITS

Real estate markets have been particularly affected by the financial crisis. Equity REITs can be affected by any changes in the value of the properties owned. A REIT’s performance depends on the types and locations of the properties it owns and on how well it manages those properties or loan financings. A decline in rental income could occur because of extended vacancies, increased competition from other properties, tenants’ failure to pay rent or poor management. A REIT’s performance also depends on the company’s ability to finance property purchases and renovations and manage its cash flows. Because REITs are typically invested in a limited number of projects or in a particular market segment, they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. Loss of status as a qualified REIT or changes in the treatment of REITs under the federal tax law, could adversely affect the value of a particular REIT or the market for REITs as a whole.

-Repurchase Agreements

Under a repurchase agreement, the seller agrees to repurchase a security at a mutually agreed-upon time and price. If the other party to a repurchase agreement defaults on its obligation, the fund may suffer delays and incur costs or lose money in exercising its rights under the agreement. If the seller fails to repurchase the security and the market value declines, the fund could lose money.

-Rule 144A Securities

“Rule 144A” securities are securities that are not registered for sale to the public and thus are considered “restricted.” They may only be resold to certain qualified institutional buyers. An insufficient number of qualified institutional buyers interested in purchasing a Rule 144A security held by the fund could adversely affect the marketability of such security and the fund might be unable to dispose of such security promptly or at reasonable prices.

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-Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

-Structured Notes

Investments in structured notes involves certain risks, including the risk that the issuer may be unable or unwilling to satisfy its obligations to pay principal or interest, which are separate from the risk that the note’s reference instruments may move in a manner that is disadvantageous to the holder of the note. Structured notes, which are often illiquid, are also subject to market risk, liquidity risk, and interest rate risk. The terms of certain structured notes may provide that a decline in the reference instrument may result in the interest rate or principal amount being reduced to zero. Structured notes may be more volatile than the underlying reference instruments or traditional debt instruments.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Currency Hedging

The fund may enter into forward foreign currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the fund’s currency exposure from one currency to another may remove the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the Barclays Capital (formerly Lehman Brothers) U.S. Government/Credit Bond Index, a widely recognized, unmanaged index of market performance that is comprised of domestic fixed-income securities, including Treasury issues and corporate debt issues. This index consists of securities with maturities from one to ten years. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 (%)

Class I Shares

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Transamerica Loomis Sayles Bond

Class I Shares	Quarter Ended		Return
Best Quarter:		6/30/2008		(0.34)	%
Worst Quarter:		9/30/2008		(10.47)	%

Average Annual Total Returns as of 12/31/08¹

	1 Year			Life of Class2
Return before taxes		(18.47)	%		(7.70)	%
Return after taxes on distributions3		(20.79)	%		(9.67)	%
Return after taxes on distributions and sale of fund shares3		(11.84)	%		(7.48)	%
Barclays Capital U.S. Government/Credit Bond Index (reflects no deduction for fees, expenses, or taxes)		5.70	%		6.42	%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.

²  Class I commenced operations on January 3, 2007.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.64%
Distribution and service (12b-1) fees	N/A
Other expenses	0.05%
Total annual fund operating expenses	0.69
Expense reduction(b)	0.00%
Net operating expenses	0.69%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010 to waive fees and/or reimburse expenses to the extent that the fund’s total operating expenses exceed 0.88% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.88% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with that of other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	70	$	221	$	384	$	859

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information — Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets:
First $200 million	0.675%
Over $200 million up to $750 million	0.625%
Over $750 million	0.60%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.64% of the fund’s average daily net assets.

Sub-Adviser:

Loomis, Sayles & Company, L.P. (“Loomis”)

One Financial Center

Boston, MA 02111

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets:
First $200 million	0.325%
Over $200 million	0.30%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Kathleen C. Gaffney, CFA, Daniel J. Fuss, CFA, CIC, Elaine M. Stokes and Mathew J. Eagan, CFA serve as portfolio managers and are responsible for the day-to-day management of this fund.

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Transamerica Loomis Sayles Bond

Ms. Gaffney, Lead Manager, is Vice President of Loomis and Senior Portfolio Manager for the Loomis Sayles Fixed Income Group. She manages institutional and mutual fund portfolios, including Loomis’ flagship Bond Fund, as well as the Strategic Income, High Income, and High Income Opportunities funds and is a co-manager or associate manager of other investment companies managed by Loomis. She started her investment career and joined Loomis in 1984, working as a fixed income and equity trader. Ms. Gaffney has been assisting Dan Fuss as a portfolio manager of the Loomis Sayles Bond Fund, an investment company managed by Loomis with an investment program comparable to that of the fund, since October 1997. She earned a B.A. from the University of Massachusetts at Amherst.

Mr. Fuss, co-manager, began his investment career in 1958. He has been with Loomis since 1976, and is Executive Vice President, Vice Chairman and Senior Portfolio Manager of the firm. Mr. Fuss co-manages institutional separate accounts for the multi-billion dollar fixed income group and a variety of mutual funds, including the flagship Bond Fund, as well as the Strategic Income, Institutional High Income and Investment Grade Bond funds, and other investment companies managed by Loomis. He has served as portfolio manager of the Loomis Sayles Bond Fund, an investment company managed by Loomis with an investment program comparable to that of the fund, since its inception in May 1991. Mr. Fuss is past president of the Boston Security Analysts Society and earned a B.S. and M.B.A. from Marquette University.

Ms. Stokes, co-manager, is Vice President of Loomis and began her investment career in 1987. She joined Loomis in 1988. Ms. Stokes co-manages the High Income Opportunities Fund and is a co-manager or associate manager of other investment companies managed by Loomis. Ms. Stokes received a B.S. from St. Michael’s College.

Mr. Eagan, co-manager, is Vice President of Loomis and began his investment career in 1989. He joined Loomis in 1997. Mr. Eagan co-manages the High Income Opportunities Fund and is a co-manager or associate manager of other investment companies managed by Loomis. He received a B.A. from Northeastern University and an M.B.A. from Boston University.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of fund shares.

184

Transamerica Van Kampen Emerging Markets Debt

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Van Kampen Emerging Markets Debt is to seek high total return by investing primarily in fixed-income securities of government and government-related issuers and, to a lesser extent, of corporate issuers in emerging market countries.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser is Morgan Stanley Investment Management Inc., which does business in certain instances (including its role as a sub-adviser to this fund) under the name Van Kampen (“Van Kampen”).

Van Kampen seeks to achieve the fund’s objective by investing primarily in fixed-income securities of government and government-related issuers and, to a lesser extent, of corporate issuers in emerging markets countries. Using macroeconomic and fundamental analysis, Van Kampen seeks to identify developing countries that are believed to be undervalued and have attractive or improving fundamentals. After the country allocation is determined, the sector and security selection is made within each country.

The sub-adviser analyzes the global economic environment and its impact on emerging markets. The sub-adviser focuses on investing in countries that show signs of positive fundamental change. This analysis considers macroeconomic factors, such as GDP growth, inflation, monetary policy, fiscal policy and interest rates and sociopolitical factors, such as political risk, leadership, social stability and commitment to reform.

In selecting securities, the sub-adviser first examines yield curves with respect to a country and then considers instrument-specific criteria, including (i) spread duration; (ii) real interest rates; and (iii) liquidity. The fund’s holdings may range in maturity from overnight to 30 years or more and will not be subject to any minimum credit rating standard. The sub-adviser may, when or if available, use certain strategies, including the use of derivatives, to protect the fund from overvalued currencies or to take advantage of undervalued currencies. Derivative instruments used by the fund will be counted toward the 80% policy discussed below to the extent they have economic characteristics similar to the securities included within that policy. The sub-adviser generally considers selling a portfolio holding when it determines that the holding no longer satisfies its investment criteria.

Under normal circumstances, at least 80% of the net assets of the fund will be invested in debt securities of issuers located in emerging markets countries. An issuer is located in an emerging markets country if:

-   its principal securities trading market is in an emerging markets country;

-   alone or on a consolidated basis, it derives 50% or more of its annual revenue from goods produced, sales made or services performed in emerging markets; or

-   it is organized under the laws of, or has a principal office in, an emerging markets or developing country.

Emerging markets or developing countries are countries that major international financial institutions, such as the World Bank, generally consider to be less economically mature than developed nations such as the United States or most nations in Western Europe. Emerging markets countries can include every nation in the world except the United States, Canada, Japan, Australia, New Zealand and most countries in Western Europe.

The fund may also invest up to 25% of its assets in cross currency hedges, which involve the sale of one currency against the positive exposure to a different currency. Cross currency hedges may be used for hedging purposes or to establish an active exposure to the exchange rate between any two currencies.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

This fund is non-diversified.

What is a Non-Diversified Fund?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests in a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to a greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the fund generally may not have more than 25% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets in one issuer with the exception of securities of the U.S. government and its agencies.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to

185

Transamerica Van Kampen Emerging Markets Debt

factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Foreign Securities

Investments in foreign securities involve risks relating to political, social and economic developments abroad, as well as risks resulting from the difference between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or

186

Transamerica Van Kampen Emerging Markets Debt

price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Non-Diversification

Focusing investments in a small number of issuers, industries or foreign currencies increases risk. Because the fund is non- diversified, it may be more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified fund might be.

-Liquidity

Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns for different periods compare to the returns of a broad measure of market performance, the J.P. Morgan Emerging Markets Bond Index Global (“EMBI Global”), a widely recognized, unmanaged index of market performance that tracks total returns for traded external debt instruments in the emerging markets. The table shows average annual total returns for Class I shares of the fund. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

Class I Shares	Quarter Ended		Return
Best Quarter:		9/30/2006		6.21	%
Worst Quarter:		12/31/2008		(8.44)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year	Life of Class2
Return before taxes	(14.28)%		3.13%
Return after taxes on distributions3	(16.45)%		0.64%
Return after taxes on distributions and sale of fund shares3	(9.18)%		1.38%
EMBI Global (reflects no deduction for fees, expenses, or taxes)	(10.92)%		4.26%

¹  Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.

²  Class I commenced operations on November 8, 2004.

³  The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.92%
Distribution and service (12b-1) fees	N/A
Other expenses	0.06%
Total annual fund operating expenses	0.98%
Expense reductionb	0.00%
Net operating expenses	0.98%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.15% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses

187

Transamerica Van Kampen Emerging Markets Debt

reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.15% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	100	$	312	$	542	$	1,201

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.95%
Over $250 million up to $500 million	0.85%
Over $500 million	0.80%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.92% of the fund’s average daily net assets.

Sub-Adviser:

Morgan Stanley Investment Management Inc.

doing business as Van Kampen (“Van Kampen”)

522 Fifth Avenue

New York, New York 10036

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.45%
Over $250 million	0.35%

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

The fund is managed by Van Kampen’s Emerging Market Debt team. Current members of the team include Abigail L. McKenna (Managing Director), Eric J. Baurmeister (Managing Director), and Federico L. Kaune (Managing Director).

Abigail L. McKenna, the Emerging Markets Debt team’s lead portfolio manager, has worked for Van Kampen since 1996 and has been managing the fund since its inception in November 2004.

Eric J. Baurmeister has worked for Van Kampen since 1997 and has been managing the fund since its inception in November 2004.

Federico L. Kaune has worked for Van Kampen since 2002 and has been managing the fund since its inception in November 2004.

Van Kampen has provided investment advisory services to various clients since 1935.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

188

Transamerica Balanced

Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Balanced is to seek long-term capital growth and current income with a secondary objective of capital preservation, by balancing investments among stocks, bonds and cash or cash equivalents.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve the fund’s objective by investing primarily in common stocks and high quality bonds with maturities of less than 30 years. TIM may also invest in cash or cash equivalents such as money market funds and other short-term investment instruments. This requires the managers of each portion of the fund to be flexible in managing the fund’s assets. At times, TIM may shift portions held in bonds and stocks according to business and investment conditions. However, at all times the fund will hold at least 25% of its assets in non-convertible fixed-income securities.

To achieve its goal, TIM invests in a diversified portfolio of common stocks, bonds, money market instruments and other short-term debt securities issued by companies of all sizes. TIM’s equity and fixed-income management teams work together to build a portfolio of growth stocks combined with bonds that TIM considers to be of good credit quality purchased at favorable prices.

TIM uses a “bottom up” approach to investing. It studies industry and economic trends, but focuses on researching individual issuers. The fund is constructed one security at a time. Each issuer passes through a research process and stands on its own merits as a viable investment in TIM’s opinion.

What is a “Bottom Up” Analysis?

When a sub-adviser uses a “bottom up” approach, it looks primarily at individual companies against the context of broader market factors.

-Equity Investments

TIM uses an intrinsic value discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long term, above-average rate of return. In projecting free cash flows and determining earnings potential and valuation, TIM uses multiple factors such as:

-   the quality of the management team;

-   the company’s ability to earn returns on capital in excess of the cost of capital;

-   competitive barriers to entry; and

-   the financial condition of the company.

TIM takes a long-term approach to investing and views each investment in a company as owning a piece of the business.

-Fixed-Income Investments

TIM’s bond management team seeks out bonds with credit strength of the quality that it believes could warrant higher ratings, which, in turn, could lead to higher valuations. To identify these bonds, the bond research team performs in-depth income and credit analysis on companies issuing bonds under consideration for the fund. It also compiles bond price information from many different bond markets and evaluates how these bonds can be expected to perform with respect to recent economic developments. TIM analyzes this market information daily, negotiating each trade and buying bonds at what TIM considers to be the best available prices.

The fund may invest in mortgage-backed securities and lower-rated bonds. The fund may also invest in derivative securities, including futures, options and options on futures, swaps and foreign securities.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

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-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally

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was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

-Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

- Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

-Small- or Medium-Sized Companies

Investing in small and medium sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The past performance information shown below is for Class A shares, which would have substantially similar annual returns as Class I shares because both share classes are invested in the same portfolio of securities. The returns for Class A shares will vary from Class I shares to the extent that the Classes do not have the same expenses and Class I shares are not subject to sales charges (which are reflected in the performance information about Class A shares in the table).

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Standard & Poor’s 500 Stock Index (“S&P 500 Index”), which is comprised of 500 widely traded common stocks that measures the general performance of the market, and the Barclays Capital (formerly Lehman Brothers) U.S. Aggregate Index (“BCUSA Index”) (secondary), which covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. Each index is a widely recognized, unmanaged index of market performance. The bar chart does not reflect the impact of sales charges, which if reflected, would lower returns. The table includes deduction of applicable Class A sales charges. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

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Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended		Return
Best Quarter:		12/31/1999		14.82	%
Worst Quarter:		12/31/2008		(16.46)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year			5 Years			10 Years
Return before taxes		(36.41)	%		(1.95)	%		0.66	%
Return after taxes on distribution2		(37.30)	%		(2.43)	%		0.07	%
Return after taxes on distributions and sale of fund shares2		(22.78)	%		(1.69)	%		0.35	%
S&P 500 Index (reflects no deduction for fees, expenses, or taxes)		(37.00)	%		(2.19)	%		(1.38)	%
BCUSA Index (secondary) (reflects no deduction for fees, expenses, or taxes)		5.24	%		4.65	%		5.63	%
Barclays Capital U.S. Government/Credit Bond Index (reflects no deduction for fees, expenses or taxes)3		5.70	%		4.64	%		5.64	%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as 401(k) plans. After-tax returns are presented for only one class and returns for other classes will vary.
2	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

³  This index served as one of the fund’s benchmarks prior to January 1, 2009, at which time it was replaced with the BCUSA Index. This benchmark index change was made to more accurately reflect the principal strategies and policies of the fund.

Note: Prior to May 28, 2004, a different sub-adviser managed this fund, and it had a different investment objective and used different investment strategies. The performance set forth prior to that date is attributable to the previous sub-adviser.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.80%
Distribution and service (12b-1) fees	N/A
Other expenses	0.37%
Total annual fund operating expenses	1.17%
Expense reductionb	0.00%
Net operating expenses	1.17%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008, restated to reflect the estimated expenses of Class I shares.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 1.45% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.45% of average daily net assets, excluding certain extraordinary expenses.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	119	$	372	$	644	$	1,420

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

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Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $250 million	0.80%
Over $250 million up to $500 million	0.75%
Over $500 million up to $1.5 billion	0.70%
Over $1.5 billion	0.625%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.80% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

First $250 million	0.35%
Over $250 million up to $500 million	0.325%
Over $500 million up to $1.5 billion	0.30%
Over $1.5 billion	0.25%
less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Gary U. Rollé, CFA

Portfolio Manager (lead-equity)

Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.

Greg D. Haendel, CFA

Portfolio Manager (lead-fixed income)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

Derek S. Brown, CFA

Portfolio Manager (co-fixed income)

Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.

Geoffrey I. Edelstein, CFA, CIC

Portfolio Manager (co-equity)

Geoffrey I. Edelstein is Principal, Managing Director and Portfolio Manager at TIM. He co-manages institutional and TIM’s private separate accounts and sub-advised funds in the Equity disciplines. Mr. Edelstein’s analytical responsibilities include the Consumer Staples sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Westcap was co-founded by Mr. Edelstein in 1992. Prior to Westcap, he practiced Corporate and Real Estate Law from 1988-1991. Mr. Edelstein earned a B.A. from University of Michigan and a J.D. from Northwestern University School of Law. He was a member of the AIMR Blue Ribbon Task Force on Soft Dollars, 1997, and has earned the right to use the Chartered Financial Analyst designation. He is also a member of the Board of Governors’ of the Investment Adviser Association and the Board of Directors of EMQ Families First, the largest children’s agency in California. Mr. Edelstein has 17 years of investment experience.

Edward S. Han

Portfolio Manager (co-equity)

Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

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Transamerica Balanced

John J. Huber, CFA

Portfolio Manager (co-equity)

John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience.

Peter O. Lopez

Portfolio Manager (co-fixed income)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

Erik U. Rollé

Portfolio Manager (co-equity)

Erik U. Rollé is a Securities Analyst and Co-Portfolio Manager at TIM. He co-manages sub-advised funds and institutional separate accounts in the Growth Equity discipline. Prior to joining TIM in 2005, Mr. Rollé worked as a Research Associate at Bradford & Marzec where his primary responsibilities were within trading and credit research. He received a B.S. in Finance and a B.S. in Journalism from the University of Colorado at Boulder. Mr. Rollé has 6 years of investment experience.

Brian W. Westhoff, CFA

Portfolio Manager (co-fixed income)

Brian W. Westhoff is a Portfolio Manager at TIM. Prior to joining TIM in 2003, Mr. Westhoff worked as an Equity Research Intern with Credit Suisse Asset Management, as a Fixed Income Investment Analyst at St. Paul Companies, and as an Argentine/Oil and Gas Equity Research Intern with Merrill Lynch in Argentina. He holds an M.B.A. from Thunderbird, the Garvin Graduate School of International Management, and received a B.S. in Business Administration from Drake University. Mr. Westhoff has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

Financial Highlights:

Financial Highlights are not included in this prospectus because no Class I shares of this fund were issued at the fund’s fiscal year end.

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Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Value Balanced is preservation of capital and competitive investment returns.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve the fund’s objective by investing fund assets principally in:

-   domestic equities whose market capitalization generally exceeds $3 billion

-   debt obligations of U.S. and foreign issuers, some of which will be convertible into common stocks

-   U.S. Treasury bonds, notes and bills

-   money market instruments

-   mortgage-backed and asset-backed securities

To achieve its goal the fund invests in a diversified portfolio of common stocks, bonds, money market instruments and other short-term debt securities issued by companies of all sizes. TIM’s equity and fixed-income management teams work together to build a portfolio of growth stocks combined with bonds that TIM considers to be of good credit quality purchased at favorable prices.

TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual issuers. The fund is constructed one security at a time. Each issuer passes through a research process and stands on its own merits as a viable investment in TIM’s opinion.

What is a “Bottom Up” Analysis?

When a sub-adviser uses a “bottom up” approach, it looks primarily at individual companies against the context of broader market factors.

Although the fund will invest primarily in publicly traded U.S. securities, it will be able to invest up to 10% of its total assets in foreign securities, including securities of issuers in emerging countries and securities quoted in foreign currencies.

TIM will seek to enhance returns in rising stock markets by increasing its allocation to equity, then seek to protect itself in falling stock markets by reducing equity exposure and shifting into fixed-income investments, as well as into money market funds. However at all times the fund will hold at least 25% of its assets in non-convertible fixed-income securities.

-Equity Investments

TIM uses an intrinsic value discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long term, above-average rate of return. In projecting free cash flows and determining earnings potential and valuation, TIM uses multiple factors such as:

-   the quality of the management team;

-   the company’s ability to earn returns on capital in excess of the cost of capital;

-   competitive barriers to entry; and

-   the financial condition of the company.

TIM takes a long-term approach to investing and views each investment in a company as owning a piece of the business.

-Fixed-Income Investments

TIM’s bond management team seeks out bonds with credit strength of the quality that it believes could warrant higher ratings, which, in turn, could lead to higher valuations. To identify these bonds, the bond research team performs in-depth income and credit analysis on companies issuing bonds under consideration for the fund. It also compiles bond price information from many different bond markets and evaluates how these bonds can be expected to perform with respect to recent economic developments. TIM analyzes this market information daily, negotiating each trade and buying bonds at what TIM considers to be the best available prices.

The fund may invest in mortgage-backed securities and lower-rated bonds. The fund may also invest in derivative securities, including futures, options and options on futures, swaps and foreign securities.

The fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

Risk is inherent in all investing. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as other similar investments. The fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

The value of securities owned by the fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries

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or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

-Stocks

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the fund holds fluctuate in price, the value of your investment in the fund will go up and down.

-Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The fund’s sub-adviser may not make use of derivatives for a variety of reasons.

-Mortgage-Related Securities

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U. S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally

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was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

-Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

-   different accounting and reporting practices

-   less information available to the public

-   less (or different) regulation of securities markets

-   more complex business negotiations

-   less liquidity

-   more fluctuations in prices

-   delays in settling foreign securities transactions

-   higher costs for holding shares (custodial fees)

-   higher transaction costs

-   vulnerability to seizure and taxes

-   political or financial instability and small markets

-   different market trading days

-Currency

When the fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the fund’s investments in foreign currency denominated securities may reduce the returns of the fund.

-Emerging Markets

Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

-High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities that are rated below “investment grade” or, if unrated, are considered by the sub-adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the fund’s sub-adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

-Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for their greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

You may lose money if you invest in this fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The past performance information shown below is for Class A shares, which would have substantially similar annual returns as Class I shares because both share classes are invested in the same portfolio of securities. The returns for Class A shares will vary from Class I shares to the extent that the Classes do not have the same expenses and Class I shares are not subject to sales charges (which are reflected in the performance information about Class A shares in the table).

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s performance has varied from year to year, and how the fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance, the Russell 1000 ^® Value Index, which measures the performance of those Russell 1000 companies with lower price-to-book ratios and

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lower forecasted growth values, and the Barclays Capital (formerly Lehman Brothers) U.S. Aggregate Index (“BCUSA Index”) (secondary), which covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. Each index is a widely recognized, unmanaged index of market performance. The bar chart does not reflect the impact of sales charges, which if reflected, would lower returns. The table includes deduction of applicable Class A sales charges. Absent limitations of the fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class A Shares

Class A Shares	Quarter Ended		Return
Best Quarter:		6/30/2003		12.90	%
Worst Quarter:		12/31/2008		(16.08)	%

  Average Annual Total Returns as of 12/31/08¹

	1 Year		5 Years		10 Years
Return before taxes		(35.32)%		(2.21)%		0.05%
Return after taxes on distributions2		(35.89)%		(3.06)%		(0.97)%
Return after taxes on distributions and sale of fund shares2		(22.82)%		(1.77)%		(0.24)%
Russell 1000 ® Value Index (reflects no deduction for fees, expenses, or taxes)		(36.85)%		(0.79)%		1.36%
BCUSA Index (secondary) (reflects no deduction for fees, expenses, or taxes)		5.24%		4.65%		5.63%

1	Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan. After-tax returns are presented for only one class and returns for other classes will vary.
2	The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.75%
Distribution and service (12b-1) fees	N/A
Other expenses	0.46%
Total annual fund operating expenses	1.21%
Expense reductionb	0.01%
Net operating expenses	1.20%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008, restated to reflect the estimated expenses of Class I shares.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total expenses exceed 1.20% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 1.20% of average daily net assets, excluding certain extraordinary expenses. The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	122	$	383	$	664	$	1,465

Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

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Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Average Daily Net Assets
First $500 million	0.75%
Over $500 million up to $1 billion	0.65%
Over $1 billion	0.60%

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.75% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the indicated annual rates (expressed as a specified percentage of the fund’s average daily net assets):

Up to $500 million	0.35%
Over $500 million up to $1 billion	0.325%
Over $1 billion	0.30%

less 50% of any amount reimbursed pursuant to the fund’s expense limitation.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

Portfolio Managers:

Greg D. Haendel, CFA

Portfolio Manager (lead-fixed income)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

Geoffrey I. Edelstein, CFA, CIC

Portfolio Manager (lead-equity)

Geoffrey I. Edelstein is Principal, Managing Director and Portfolio Manager at TIM. He co-manages institutional and TIM’s private separate accounts and sub-advised funds in the Equity disciplines. Mr. Edelstein’s analytical responsibilities include the Consumer Staples sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Westcap was co-founded by Mr. Edelstein in 1992. Prior to Westcap, he practiced Corporate and Real Estate Law from 1988-1991. Mr. Edelstein earned a B.A. from University of Michigan and a J.D. from Northwestern University School of Law. He was a member of the AIMR Blue Ribbon Task Force on Soft Dollars, 1997, and has earned the right to use the Chartered Financial Analyst designation. He is also a member of the Board of Governors’ of the Investment Adviser Association and the Board of Directors of EMQ Families First, the largest children’s agency in California. Mr. Edelstein has 17 years of investment experience.

Derek S. Brown, CFA

Portfolio Manager (co-fixed income)

Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.

Scott L. Dinsdale, CFA

Portfolio Manager (co-equity)

Scott L. Dinsdale is a Senior Securities Analyst at TIM. He re-joined TIM in 2005 after previously serving as a Fixed Income Analyst from 1999-2000. Mr. Dinsdale was a Portfolio Manager and Analyst in the High Yield and Convertible Securities group at Pacific Life Insurance Company and previously worked as a Director at Standard and Poor’s Ratings Group. He holds an M.B.A. in Finance and International Business from the Stern School of Business at New York University and received a B.A. in Business Administration from San Diego State University. Mr. Dinsdale has earned the right to use the Chartered Financial Analyst designation and has 20 years of investment experience.

Kirk R. Feldhus

Portfolio Manager (co-equity)

Kirk R. Feldhus is a Securities Analyst at TIM. He co-manages institutional and retail portfolios for the diversified equity and all-cap value strategies. He joined TIM in 2005 when the firm acquired Westcap Investors LLC. Prior to Westcap, Mr. Feldhus served as vice president at Crystal Cove Capital. He has worked as a research associate at Bank of America Securities and as a management consultant at Ernst & Young. He holds an MBA from the Marshall School at the University of Southern California and earned a B.S. from Colorado State University. Mr. Feldhus has 9 years of investment experience.

Brian W. Westhoff, CFA

Portfolio Manager (co-equity)

Brian W. Westhoff is a Portfolio Manager at TIM. Prior to joining TIM in 2003, Mr. Westhoff worked as an Equity Research Intern with Credit Suisse Asset Management, as a Fixed Income Investment Analyst at St. Paul Companies, and as an

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Argentine/Oil and Gas Equity Research Intern with Merrill Lynch in Argentina. He holds an M.B.A. from Thunderbird, the Garvin Graduate School of International Management, and received a B.S. in Business Administration from Drake University. Mr. Westhoff has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the fund.

Financial Highlights:

Financial Highlights are not included in this prospectus because no Class I shares of this fund were issued at the fund’s fiscal year end.

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Summary of Risks and Returns

Objective

­ ­

The objective of Transamerica Money Market is to seek maximum current income from money market securities consistent with liquidity and preservation of principal.

Principal Strategies and Policies

­ ­

The fund’s sub-adviser, Transamerica Investment Management, LLC (“TIM”), seeks to achieve this objective by investing substantially all of the fund’s assets in accordance with Rule 2a-7 under the Investment Company Act of 1940 in the following U.S. dollar-denominated instruments:

-   short-term corporate obligations, including commercial paper, notes and bonds

-   obligations issued or guaranteed by the U.S. and foreign governments and their agencies and instrumentalities

-   obligations of U.S. and foreign banks, or their foreign branches, and U.S. savings banks

-   repurchase agreements involving any of the securities mentioned above

TIM also seeks to maintain a stable net asset value of $1.00 per share by:

-   investing in securities which TIM believes present minimal credit risk; and

-   maintaining the average maturity of obligations held in the fund’s portfolio at 90 days or less.

Bank obligations purchased for the fund are limited to U.S. or foreign banks with total assets of $1.5 billion or more. Similarly, savings association obligations purchased for the fund are limited to U.S. savings association obligations issued by U.S. savings banks with total assets of $1.5 billion or more. Foreign securities purchased for the fund must be U.S. dollar-denominated and issued by foreign governments, agencies or instrumentalities, or banks that meet the minimum $1.5 billion capital requirement. These foreign obligations must also meet the same quality requirements as U.S. obligations. The commercial paper and other short-term corporate obligations TIM buys for the fund are determined by the fund manager to present minimal credit risks.

To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

­ ­

An investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. The fund could underperform other short-term debt instruments or money market funds, or you could lose money. This fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

-Market

A decline in the market value of a fund investment, lack of liquidity in the bond markets or other market events, including the ongoing global financial crisis, could cause the value of your investment in the fund, or its yield, to decline.

-Interest Rates

The interest rates on short-term obligations held in the fund’s portfolio will vary, rising or falling with short-term interest rates generally. The fund’s yield will tend to lag behind general changes in interest rate.

The ability of the fund’s yield to reflect current market rates will depend on how quickly the obligations in its portfolio mature and how much money is available for investment at current market rates.

-Credit

The fund is also subject to the risk that the issuer of a security in which it invests (or a guarantor) may fail to pay the principal or interest payments when due. Debt securities also fluctuate in value based on the perceived creditworthiness of issuers. This will lower the return from, and the value of, the security, which will lower the performance of the fund. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

-Bank Obligations

If the fund concentrates in U.S. bank obligations, the fund will be particularly sensitive to adverse events affecting U.S. banks. Banks are sensitive to changes in money market and general economic conditions, as well as decisions by regulators that can affect banks’ profitability.

-Yield Fluctuation

The fund invests in short-term money market instruments. As a result, the amount of income paid to you by the fund will go up or down depending on day-to-day variations in short-term interest rates. Investing in high quality, short-term instruments may result in a lower yield (the income on your investment) than investing in lower quality or longer-term instruments. When interest rates are very low, the fund’s expenses could absorb all or a significant portion of the fund’s income.

An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other

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governmental agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Please also see the fund’s website at www.transamericafunds.com for more information about the fund.

Disclosure of Portfolio Holdings

A detailed description of the fund’s policies and procedures with respect to the disclosure of the fund’s portfolio securities is available in the Statement of Additional Information. In addition, investors should note that the fund publishes its holdings on its website at www.transamericafunds.com 25 days after the end of each calendar quarter. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

­ ­

The bar chart and the table below provide some indication of the risks of investing in the fund by showing you how the fund’s Class I average annual total returns and its performance since inception. The table shows average annual total returns for Class I shares of the fund. Absent limitation of the fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 each year (%)

Class I Shares

7-Day Yield¹

(as of October 31, 2008)

Class I Shares = 2.23%

Class I Shares	Quarter Ended		Return
Best Quarter:		12/31/2006		1.24	%
Worst Quarter:		12/31/2008		0.40	%

  Average Annual Total Returns as of 12/31/08²

	1 Year	Life of Class3
Return before taxes	2.32%		3.94%

1	Call Customer Service (1-888-233-4339) for the current 7-day yield.
2	Actual returns may depend on the investor’s individual tax situation.
3	Class I commenced operations on November 15, 2005.

Fees and Expenses

­ ­

There are no sales charges (load) or other transaction fees.

The following table describes the fees and expenses that you may pay if you buy and hold shares of the fund.

Annual Fund Operating Expenses (expenses that are deducted from fund assets, expressed as a % of average daily net assets)a
	Class I Shares
Management fees	0.40%
Distribution and service (12b-1) fees	N/A
Other expenses	0.11%
Total annual fund operating expenses	0.51%
Expense reductionb,c	0.01%
Net operating expenses	0.50%

^a  Annual fund operating expenses are based on the fund’s expenses for the fiscal year ended October 31, 2008, restated to include an adjustment of 0.02% as a result of the U.S. Treasury’s Temporary Guarantee Program for Money Market Funds (the “Program”). The Program expenses were incurred for the period September 19, 2008 through April 30, 2009, and are not covered by the contractual expense cap currently in effect. It is not currently known whether the Program will be extended or if the fund will continue to participate in the Program beyond April 30, 2009.

^b  Contractual arrangements have been made with the fund’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent that the fund’s total operating expenses exceed 0.48% of average daily net assets, excluding certain extraordinary expenses. TAM is entitled to reimbursement by the fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement if on any day the estimated annualized fund operating expenses are less than 0.48% of average daily net assets, excluding certain extraordinary expenses.

^c  In order to avoid a negative yield, TAM or any of its affiliates may waive fees or reimburse expenses of one or more classes of the fund. Any such waiver or expense reimbursement would be voluntary, could be discontinued at any time, and is subject in certain circumstances to reimbursement by the fund to TAM or its affiliates. There is no guarantee that the fund will be able to avoid a negative yield.

EXAMPLE

This example is here to help you compare the cost of investing in this fund with the cost of investing in other mutual funds. It shows the cumulative expenses you would pay if you invested $10,000, reinvested all distributions and dividends without a sales charge, and held your shares for the periods shown and then redeem all of your shares at the end of those periods, with a 5% annual return (this assumption is required by the SEC and is not a prediction of the fund’s future performance) and fund operating expenses remaining the same. Actual costs may be higher or lower.

Share Class	1 year		3 years		5 years		10 years
I	$	51	$	156	$	273	$	615

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Additional Information

­ ­

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, Florida 33716-1202

For additional information about TAM, see the section entitled “Shareholder Information – Investment Adviser” of this prospectus.

Advisory Fee:

TAM receives compensation, calculated daily and paid monthly, from the fund at the annual rate of 0.40% of the fund’s average daily net assets.

For the fiscal year ended October 31, 2008, the fund paid an advisory fee of 0.40% of the fund’s average daily net assets.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, California 90025

Sub-Advisory Fee:

The sub-adviser receives compensation, calculated daily and paid monthly, from TAM at the annual rate of 0.15% of the fund’s average daily net assets.

A discussion regarding the basis of the Board of Trustees’ approval of the fund’s advisory arrangements is available in the fund’s semi-annual report for the fiscal period ended April 30, 2008.

203

Financial Highlights

The Financial Highlights table is intended to help you understand the performance of Class I shares for as long as they have been offered. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in the fund for the period shown, assuming reinvestment of all dividends and distributions. This information through October 31, 2008 has been derived from financial statements audited by PricewaterhouseCoopers LLP, whose report, along with the fund’s financial statements, is included in the 2008 Annual Report, which is available to you upon request.

For a share of beneficial interest outstanding throughout each period:

	Transamerica American Century			Transamerica Bjurman,
	Large Company Value			Barry Micro Emerging Growth
	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006(a)	2008	2007	2006(a)
Net Asset Value
Beginning of period	$12.82	$12.45	$11.15	$12.51	$10.47	$10.00
Investment Operations
Net Investment income (loss)(b)	0.23	0.22	0.17	(0.04)	(0.07)	(0.02)
Net realized and unrealized gain (loss) on investments	(4.94)	0.97	1.57	(6.07)	2.11	0.49
Total from investment operations	(4.71)	1.19	1.74	(6.11)	2.04	0.47
Distributions
Net investment income	(0.19)	(0.17)	(0.03)	–	–	–
Net realized gains on investments	(0.20)	(0.65)	(0.41)	–	–	–
Total distributions	(0.39)	(0.82)	(0.44)	–	–	–
Net Asset Value
End of period	$7.72	$12.82	$12.45	$6.40	$12.51	$10.47
Total Return(c)	(37.79%)	9.95%	16.11%(d)	(48.84%)	19.48%	4.70%(d)
Net Assets End of Period	$ 423,344	$ 695,331	$ 316,631	$ 66,416	$ 92,126	$ 55,381
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.85%	0.85%	0.91%(e)	1.12%	1.16%(f)	1.25%(e)
Before reimbursement/fee waiver	0.85%	0.85%	0.91%(e)	1.12%	1.16%(f)	1.38%(e)
Net investment income (loss), to average net assets	2.19%	1.73%	1.57%(e)	(0.44%)	(0.63%)	(0.69%)(e)
Portfolio turnover rate	30%	13%	24%(d)	45%	116%	14%(d)

204

Financial Highlights

	Transamerica BlackRock			Transamerica JPMorgan
	Large Cap Value			Mid Cap Value
	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006(a)	2008	2007	2006(a)
Net Asset Value
Beginning of period	$13.08	$12.15	$10.47	$12.32	$11.67	$10.09
Investment Operations
Net Investment income (loss)(b)	0.13	0.12	0.07	0.13	0.13	0.11
Net realized and unrealized gain (loss) on investments	(4.78)	1.27	1.64	(4.20)	1.13	1.57
Total from investment operations	(4.65)	1.39	1.71	(4.07)	1.26	1.68
Distributions
Net investment income	(0.09)	(0.09)	(0.03)	(0.10)	(0.11)	(0.05)
Net realized gains on investments	(0.73)	(0.37)	–	(0.61)	(0.50)	(0.05)
Total distributions	(0.82)	(0.46)	(0.03)	(0.71)	(0.61)	(0.10)
Net Asset Value
End of period	$7.61	$13.08	$12.15	$7.54	$12.32	$11.67
Total Return(c)	(37.76%)	11.80%	16.36%(d)	(34.92%)	11.07%	16.71%(d)
Net Assets End of Period	$ 461,816	$ 610,135	$ 506,529	$ 147,772	$ 270,661	$ 245,188
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.83%	0.84%	0.84%(e)	0.87%	0.87%	0.88%(e)
Before reimbursement/fee waiver	0.83%	0.84%	0.84%(e)	0.87%	0.87%	0.88%(e)
Net investment income (loss), to average net assets	1.21%	0.96%	0.62%(e)	1.22%	0.98%	1.10%(e)
Portfolio turnover rate	71%	69%	56%(d)	45%	50%	46%(d)

	Transamerica Jennison			Transamerica Legg Mason
	Growth			Partners Investors Value
	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006(a)	2008	2007	2006(a)
Net Asset Value
Beginning of period	$13.05	$11.40	$11.43	$10.11	$11.15	$14.35
Investment Operations
Net Investment income (loss)(b)	0.02	0.03	–(g)	0.13	0.11	0.12
Net realized and unrealized gain (loss) on investments	(4.68)	2.08	0.18	(3.33)	1.05	1.59
Total from investment operations	(4.66)	2.11	0.18	(3.20)	1.16	1.71
Distributions
Net investment income	(0.02)	–	–	(0.10)	(0.12)	(0.05)
Net realized gains on investments	–	(0.46)	(0.21)	(0.45)	(2.08)	(4.86)
Total distributions	(0.02)	(0.46)	(0.21)	(0.55)	(2.20)	(4.91)
Net Asset Value
End of period	$8.37	$13.05	$11.40	$6.36	$10.11	$11.15
Total Return(c)	(35.77%)	19.14%	1.50%(d)	(33.38%)	12.10%	16.22%(d)
Net Assets End of Period	$ 184,981	$ 160,815	$ 96,273	$ 28,448	$ 64,733	$ 65,758
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.85%	0.87%	0.89%(e)	0.87%	0.89%	0.90%(e)
Before reimbursement/fee waiver	0.85%	0.87%	0.89%(e)	0.87%	0.89%	0.90%(e)
Net investment income (loss), to average net assets	0.21%	0.22%	(0.02%)(e)	1.58%	1.10%	1.17%(e)
Portfolio turnover rate	70%	63%	80%(d)	21%	12%	23%(d)

205

Financial Highlights

	Transamerica Marsico			Transamerica
	Growth			Third Avenue Value
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006(a)	2008	2007(a)
Net Asset Value
Beginning of period	$14.40	$11.07	$10.63	$28.93	$28.01
Investment Operations
Net Investment income (loss)(b)	0.08	0.04	0.01	0.24	0.14
Net realized and unrealized gain (loss) on investments	(5.16)	3.30	0.43	(11.45)	0.78
Total from investment operations	(5.08)	3.34	0.44	(11.21)	0.92
Distributions
Net investment income	(0.04)	(0.01)	–	(0.42)	–
Net realized gains on investments	–	–	–	(0.37)	–
Total distributions	(0.04)	(0.01)	–	(0.79)	–
Net Asset Value
End of period	$9.28	$14.40	$11.07	$16.93	$28.93
Total Return(c)	(35.35%)	30.25%	4.14%(d)	(39.75%)	3.28%(d)
Net Assets End of Period	$ 345,477	$ 396,693	$ 100,280	$ 336,845	$ 678,578
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.85%	0.86%	0.89%(e)	0.86%	0.86%(e)
Before reimbursement/fee waiver	0.85%	0.86%	0.89%(e)	0.86%	0.86%(e)
Net investment income (loss), to average net assets	0.68%	0.30%	0.07%(e)	1.00%	0.98%(e)
Portfolio turnover rate	73%	40%	62%(d)	29%	11%(d)

	Transamerica Oppenheimer			Transamerica BNY Mellon
	Small- & Mid-Cap Value			Market Neutral Strategy
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006(a)	2008	2007(a)
Net Asset Value
Beginning of period	$13.18	$10.94	$10.00	$9.78	$10.00
Investment Operations
Net Investment income (loss)(b)	0.04	–	0.02	0.10	0.23
Net realized and unrealized gain (loss) on investments	(5.98)	2.44	0.92	0.20	(0.45)
Total from investment operations	(5.94)	2.44	0.94	0.30	(0.22)
Distributions
Net investment income	–(g)	(0.02)	–	(0.57)	–
Net realized gains on investments	(0.94)	(0.18)	–	–	–
Total distributions	(0.94)	(0.20)	–	(0.57)	–
Net Asset Value
End of period	$6.30	$13.18	$10.94	$9.51	$9.78
Total Return(c)	(48.36%)	22.57%	9.40%(d)	3.30%	(2.20%)(d)
Net Assets End of Period	$ 127,886	$ 183,126	$ 91,899	$ 121,348	$ 112,394
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.00%	1.03%(i)	1.15%(e)	2.79%(h)	3.05%(e),(h)
Before reimbursement/fee waiver	1.00%	1.03%(i)	1.22%(e)	2.79%(h)	3.05%(e),(h)
Net investment income (loss), to average net assets	0.34%	–%	0.74%(e)	1.05%(h)	2.77%(e),(h)
Portfolio turnover rate	102%	118%	33%(d)	192%	119%(d)

206

Financial Highlights

	Transamerica			Transamerica Growth
	Equity			Opportunities
	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006(a)	2008	2007	2006(a)
Net Asset Value
Beginning of period	$12.23	$9.90	$9.17	$11.59	$8.43	$7.99
Investment Operations
Net Investment income (loss)(b)	0.06	0.01	–(g)	0.01	(0.01)	–(g)
Net realized and unrealized gain (loss) on investments	(5.30)	2.32	0.81	(4.86)	3.17	0.44
Total from investment operations	(5.24)	2.33	0.81	(4.85)	3.16	0.44
Distributions
Net investment income	–	–	–	–	–	–
Net realized gains on investments	–	–	(0.08)	–	–	–
Total distributions	–	–	(0.08)	–	–	–
Net Asset Value
End of period	$6.99	$12.23	$9.90	$6.74	$11.59	$8.43
Total Return(c)	(42.85%)	23.54%	8.83%(d)	(41.85%)	37.49%	5.51%(d)
Net Assets End of Period	$ 500,722	$ 888,019	$ 714,803	$ 86,425	$ 206,863	$ 214,775
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.75%	0.78%	0.81%(e)	0.86%	0.88%	0.88%(e)
Before reimbursement/fee waiver	0.75%	0.78%	0.81%(e)	0.86%	0.88%	0.88%(e)
Net investment income (loss), to average net assets	0.55%	0.13%	0.02%(e)	0.15%	(0.15%)	(0.06%)(e)
Portfolio turnover rate	33%	62%	19%(d)	45%	85%	59%(d)
	Transamerica Small/
	Mid Cap Value
	October 31,	October 31,	October 31,
	2008	2007	2006(a)
Beginning of period	$23.91	$17.87	$16.84
Investment Operations
Net Investment income (loss)(b)	0.30	0.26	0.18
Net realized and unrealized gain (loss) on investments	(8.67)	6.32	1.97
Total from investment operations	(8.37)	6.58	2.15
Distributions
Net investment income	(0.24)	(0.23)	–
Net realized gains on investments	(2.49)	(0.31)	(1.12)
Total distributions	(2.73)	(0.54)	(1.12)
Net Asset Value
End of period	$12.81	$23.91	$17.87
Total Return(c)	(39.11%)	37.78%	13.30%(d)
Net Assets End of Period	$ 214,351	$ 487,605	$ 478,728
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.85%	0.85%	0.86%(e)
Before reimbursement/fee waiver	0.85%	0.85%	0.86%(e)
Net investment income (loss), to average net assets	1.58%	1.30%	1.05%(e)
Portfolio turnover rate	48%	22%	21%(d)

207

Financial Highlights

	Transamerica UBS				Transamerica Van Kampen
	Large Cap Value				Mid-Cap Growth
	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005(a)	2008	2007	2006(a)
Net Asset Value
Beginning of period	$13.79	$12.73	$10.95	10.00	$14.16	$10.33	$10.00
Investment Operations
Net Investment income (loss)(b)	0.21	0.19	0.14	0.12	0.02	0.04	0.01
Net realized and unrealized gain (loss) on investments	(5.64)	1.36	1.92	0.84	(5.90)	3.81	0.32
Total from investment operations	(5.43)	1.55	2.06	0.96	(5.88)	3.85	0.33
Distributions
Net investment income	(0.15)	(0.13)	(0.10)	(0.01)	(0.02)	(0.02)	–
Net realized gains on investments	(0.16)	(0.36)	(0.18)	–	(0.84)	–	–
Total distributions	(0.31)	(0.49)	(0.28)	(0.01)	(0.86)	(0.02)	–
Net Asset Value
End of period	$8.05	$13.79	$12.73	$10.95	$7.42	$14.16	$10.33
Total Return(c)	(40.19%)	12.48%	19.19%	9.60%(d)	(43.99%)	37.32%	3.30%(d)
Net Assets End of Period	$ 701,997	$ 880,922	$ 226,782	$ 94,135	$ 98,141	$ 125,380	$ 75,092
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.80%	0.81%	0.88%	0.92%(e)	0.87%	0.90%	0.92%(e)
Before reimbursement/fee waiver	0.80%	0.81%	0.88%	0.92%(e)	0.87%	0.90%	0.92%(e)
Net investment income (loss), to average net assets	1.86%	1.41%	1.21%	1.14%(e)	0.19%	0.32%	0.11%(e)
Portfolio turnover rate	47%	27%	32%	43%(d)	40%	74%	50%(d)

	Transamerica Van Kampen				Transamerica BlackRock
	Small Company Growth				Global Allocation
	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005(a)	2008	2007	2006(a)
Net Asset Value
Beginning of period	$14.14	$12.78	$11.29	$10.10	$13.23	$11.23	$10.00
Investment Operations
Net Investment income (loss)(b)	0.10	0.02	(0.02)	0.01	0.27	0.24	0.19
Net realized and unrealized gain (loss) on investments	(5.50)	1.81	1.69	1.28	(3.25)	2.15	1.06
Total from investment operations	(5.40)	1.83	1.67	1.29	(2.98)	2.39	1.25
Distributions
Net investment income	(0.02)	–	(0.01)	–	(0.35)	(0.20)	(0.02)
Net realized gains on investments	(1.33)	(0.47)	(0.17)	–	(0.58)	(0.19)	–
Total distributions	(1.35)	(0.47)	(0.18)	–	(0.93)	(0.39)	(0.02)
Net Asset Value
End of period	$7.39	$14.14	$12.78	$11.29	$9.32	$13.23	$11.23
Total Return(c)	(41.72%)	14.75%	14.92%	$12.80%(d)	(24.23%)	21.95%	12.45%(d)
Net Assets End of Period	$ 61,214	$ 188,347	$ 301,649	$ 86,432	$ 377,781	$ 520,484	$ 490,491
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.02%	1.01%	1.01%	1.07%(e)	0.88%	0.85%	0.90%(e)
Before reimbursement/fee waiver	1.02%	1.01%	1.01%	1.07%(e)	0.88%	0.85%	0.90%(e)
Net investment income (loss), to average net assets	0.89%	0.13%	(0.19%)	0.06%(e)	2.25%	2.04%	2.02%(e)
Portfolio turnover rate	44%	71%	67%	75%(d)	49%	30%	31%(d)

208

Financial Highlights

	Transamerica Clarion Global
	Real Estate Securities
	October 31,	October 31,	October 31,
	2008	2007	2006(a)
Net Asset Value
Beginning of period	$20.48	$20.25	$15.85
Investment Operations
Net Investment income (loss)(b)	0.32	0.36	0.21
Net realized and unrealized gain (loss) on investments	(8.33)	2.45	5.85
Total from investment operations	(8.01)	2.81	6.06
Distributions
Net investment income	(0.90)	(0.80)	(0.28)
Net realized gains on investments	(2.05)	(1.78)	(1.38)
Total distributions	(2.95)	(2.58)	(1.66)
Net Asset Value
End of period	$9.52	$20.48	$20.25
Total Return(c)	(44.82%)	15.11%	41.43%(d)
Net Assets End of Period	$ 232,115	$ 367,750	$ 331,620
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.89%	0.88%	0.91%(e)
Before reimbursement/fee waiver	0.89%	0.88%	0.91%(e)
Net investment income (loss), to average net assets	2.29%	1.29%	1.27%(e)
Portfolio turnover rate	41%	72%	76%(d)

	Transamerica Evergreen
	Health Care				Transamerica BlackRock Natural Resources
	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005(a)	2008	2007(a)
Net Asset Value
Beginning of period	$14.15	$14.22	$12.52	$11.26	$14.11	$10.00
Investment Operations
Net Investment income (loss)(b)	0.02	0.03	–(g)	(0.07)	0.03	0.04
Net realized and unrealized gain (loss) on investments	(4.13)	1.75	2.42	1.43	(5.85)	4.07
Total from investment operations	(4.11)	1.78	2.42	1.36	(5.82)	4.11
Distributions
Net investment income	(0.02)	–(g)	–	–	(0.03)	–
Net realized gains on investments	(1.10)	(1.85)	(0.72)	(0.10)	(0.15)	–
Total distributions	(1.12)	(1.85)	(0.72)	(0.10)	(0.18)	–
Net Asset Value
End of period	$8.92	$14.15	$14.22	$12.52	$8.11	$14.11
Total Return(c)	(31.45%)	14.04%	20.02%	12.09%(d)	(41.77%)	41.10%(d)
Net Assets End of Period	$ 162,357	$ 363,479	$ 514,419	$ 173,270	$ 87,252	$ 156,779
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.90%	0.90%	0.96%(i)	1.06%(e)	0.86%	0.89%(e)
Before reimbursement/fee waiver	0.90%	0.90%	0.96%(i)	1.06%(e)	0.86%	0.89%(e)
Net investment income (loss), to average net assets	0.16%	0.23%	(0.03%)	(0.65%)(e)	0.21%	0.39%(e)
Portfolio turnover rate	44%	68%	92%	59%(d)	4%	7%(d)

209

Financial Highlights

	Transamerica Federated			Transamerica Convertible
	Market Opportunity			Securities
	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006(a)	2008	2007	2006(a)
Net Asset Value
Beginning of period	$9.33	$9.71	$10.00	$15.31	$12.76	$11.71
Investment Operations
Net Investment income (loss)(b)	0.11	0.24	0.27	0.18	0.16	0.14
Net realized and unrealized gain (loss) on investments	(0.77)	(0.34)	(0.30)	(4.92)	3.23	1.17
Total from investment operations	(0.66)	(0.10)	(0.03)	(4.74)	3.39	1.31
Distributions
Net investment income	(0.11)	(0.28)	(0.26)	(0.15)	(0.17)	(0.13)
Net realized gains on investments	–	–	–	(3.23)	(0.67)	(1.13)
Total distributions	(0.11)	(0.28)	(0.26)	(3.38)	(0.84)	(0.26)
Net Asset Value
End of period	$8.56	$9.33	$9.71	$7.19	$15.31	$12.76
Total Return(c)	(7.16%)	(1.03%)	(0.35%)(d)	(38.58%)	28.10%	11.26%(d)
Net Assets End of Period	$ 74,480	$ 53,747	$ 83,188	$ 91,679	$ 148,562	$ 256,474
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.88%	0.93%	0.88%(e)	0.84%	0.82%	0.82%(e)
Before reimbursement/fee waiver	0.88%	0.93%	0.88%(e)	0.84%	0.82%	0.82%(e)
Net investment income (loss), to average net assets	1.13%	2.49%	2.97%(e)	1.65%	1.24%	1.20%(e)
Portfolio turnover rate	195%	97%	72%(d)	91%	92%	69%(d)

				Transamerica AllianceBernstein
	Transamerica Science & Technology			International Value
	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006(a)	2008	2007	2006(a)
Net Asset Value
Beginning of period	$5.74	$3.93	$3.98	$14.88	$12.35	$10.00
Investment Operations
Net Investment income (loss)(b)	(0.02)	(0.02)	(0.01)	0.30	0.25	0.20
Net realized and unrealized gain (loss) on investments	(2.65)	1.83	0.02	(7.43)	2.65	2.16
Total from investment operations	(2.67)	1.81	0.01	(7.13)	2.90	2.36
Distributions
Net investment income	–	–	–	(0.21)	(0.15)	(0.01)
Net realized gains on investments	(0.18)	–	(0.06)	(0.93)	(0.22)	–
Total distributions	(0.18)	–	(0.06)	(1.14)	(0.37)	(0.01)
Net Asset Value
End of period	$2.89	$5.74	$3.93	$6.61	$14.88	$12.35
Total Return(c)	(47.93%)	46.06%	0.12%(d)	(51.72%)	23.99%	23.67%(d)
Net Assets End of Period	$ 46,222	$ 84,206	$ 57,642	$ 248,337	$ 519,217	$ 376,531
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.91%	0.92%	0.92%(e)	0.94%	0.93%	0.99%(e)
Before reimbursement/fee waiver	0.91%	0.92%	0.92%(e)	0.94%	0.93%	0.99%(e)
Net investment income (loss), to average net assets	(0.41%)	(0.41%)	(0.35%)(e)	2.71%	1.82%	1.91%(e)
Portfolio turnover rate	47%	66%	94%(d)	33%	36%	22%(d)

210

Financial Highlights

	Transamerica
	Schroders
	International
	Small Cap	Transamerica Evergreen International Small Cap
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008(a)	2008	2007	2006	2005(a)
Net Asset Value
Beginning of period	$10.00	$18.82	$16.18	$12.71	$10.00
Investment Operations
Net Investment income (loss)(b)	0.12	0.09	0.15	0.14	0.06
Net realized and unrealized gain (loss) on investments	(4.30)	(8.51)	4.84	3.79	2.65
Total from investment operations	(4.18)	(8.42)	4.99	3.93	2.71
Distributions
Net investment income	–	(0.13)	(0.12)	(0.03)	–
Net realized gains on investments	–	(2.01)	(2.23)	(0.43)	–
Total distributions	–	(2.14)	(2.35)	(0.46)	–
Net Asset Value
End of period	$5.82	$8.26	$18.82	$16.18	$12.71
Total Return(c)	(41.80%)(d)	(50.10%)	34.72%	31.68%	27.10%(d)
Net Assets End of Period	$ 108,655	$ 316,739	$ 639,892	$ 471,635	$ 204,413
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.27%(e)	1.14%	1.13%	1.15%	1.22%(e)
Before reimbursement/fee waiver	1.30%(e)	1.14%	1.13%	1.15%	1.22%(e)
Net investment income (loss), to average net assets	1.96%(e)	0.63%	0.88%	0.94%	0.56%(e)
Portfolio turnover rate	14%(d)	120%	78%	89%	65%(d)

	Transamerica MFS
	International Equity	Transamerica Marsico International Growth
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008(a)	2008	2007	2006	2005(a)
Net Asset Value
Beginning of period	$10.00	$16.24	$14.12	$11.11	$10.00
Investment Operations
Net Investment income (loss)(b)	0.02	0.14	0.13	0.05	0.16
Net realized and unrealized gain (loss) on investments	(3.44)	(7.93)	4.46	3.17	0.99
Total from investment operations	(3.42)	(7.79)	4.59	3.22	1.15
Distributions
Net investment income	–	(0.13)	(0.03)	(0.12)	(0.04)
Net realized gains on investments	–	(1.58)	(2.44)	(0.09)	—
Total distributions	–	(1.71)	(2.47)	(0.21)	(0.04)
Net Asset Value
End of period	$6.58	$6.74	$16.24	$14.12	$11.11
Total Return(c)	(34.20%)(d)	(53.42%)	38.11%	29.35%	11.49%(d)
Net Assets End of Period	$ 40,997	$ 283,767	$ 627,738	$ 428,626	$ 281,692
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.23%(e)	1.12%	1.13%	1.16%	1.18%(e)
Before reimbursement/fee waiver	1.23%(e)	1.12%	1.13%	1.16%	1.18%(e)
Net investment income (loss), to average net assets	0.71%(e)	1.19%	0.99%	0.38%	1.52%(e)
Portfolio turnover rate	37%(d)	122%	133%	129%	145%(d)

211

Financial Highlights

	Transamerica Neuberger Berman			Transamerica Thornburg
	International			International Value
	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006(a)	2008(a)
Net Asset Value
Beginning of period	$13.55	$11.74	$10.00	$10.00
Investment Operations
Net Investment income (loss)(b)	0.19	0.15	0.12	–(g)
Net realized and unrealized gain (loss) on investments	(6.63)	2.37	1.64	(2.02)
Total from investment operations	(6.44)	2.52	1.76	(2.02)
Distributions
Net investment income	(0.13)	(0.13)	(0.02)
Net realized gains on investments	(1.03)	(0.58)	–	–
Total distributions	(1.16)	(0.71)	(0.02)	–
Net Asset Value
End of period	$5.95	$13.55	$11.74	$7.98
Total Return(c)	(51.66%)	22.37%	17.61%(d)	(20.20%)(d)
Net Assets End of Period	$ 307,981	$ 596,488	$ 459,996	$ 79,516
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.06%	1.06%	1.07%(e)	1.35%(e)
Before reimbursement/fee waiver	1.06%	1.06%	1.07%(e)	1.76%(e)
Net investment income (loss), to average net assets	1.87%	1.21%	1.21%(e)	(0.18%)(e)
Portfolio turnover rate	72%	57%	52%(d)	5%(d)

	Transamerica Oppenheimer
	Developing Markets
	October 31,	October 31,	October 31,
	2008	2007	2006(a)
Net Asset Value
Beginning of period	$17.07	$11.41	$10.00
Investment Operations
Net Investment income (loss)(b)	0.19	0.12	0.09
Net realized and unrealized gain (loss) on investments	(7.65)	5.99	1.37
Total from investment operations	(7.46)	6.11	1.46
Distributions
Net investment income	(0.09)	(0.06)	(0.05)
Net realized gains on investments	(1.32)	(0.39)	–
Total distributions	(1.41)	(0.45)	(0.05)
Net Asset Value
End of period	$8.20	$17.07	$11.41
Total Return(c)	(47.48%)	55.27%	14.64%(d)
Net Assets End of Period	$ 317,973	$ 674,561	$ 362,080
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.32%	1.34%	1.45%(e)
Before reimbursement/fee waiver	1.32%	1.34%	1.45%(e)
Net investment income (loss), to average net assets	1.42%	0.87%	0.89%(e)
Portfolio turnover rate	67%	59%	77%(d)

212

Financial Highlights

	Transamerica WMC Emerging Markets	Transamerica PIMCO Real Return TIPS
	October 31,	October 31,	October 31,	October 31,	October 31,
	2008(a)	2008	2007	2006	2005(a)
Net Asset Value
Beginning of period	$10.00	$10.21	$10.05	$10.25	$10.45
Investment Operations
Net Investment income (loss)(b)	–(g)	0.47	0.38	0.48	0.37
Net realized and unrealized gain (loss) on investments	(2.34)	(0.96)	0.16	(0.22)	(0.04)
Total from investment operations	(2.34)	(0.49)	0.54	0.26	0.33
Distributions
Net investment income	–	(0.51)	(0.38)	(0.45)	(0.36)
Net realized gains on investments	–	–	–	(0.01)	0.17
Total distributions	–	(0.51)	(0.38)	(0.46)	(0.53)
Net Asset Value
End of period	$7.66	$9.21	$10.21	$10.05	$10.25
Total Return(c)	(23.40%)(d)	(5.29%)	5.54%	2.55%	3.20%(d)
Net Assets End of Period	$ 76,127	$ 621,092	$ 690,942	$ 603,597	$ 295,966
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.40%(e)	0.74%	0.73%	0.73%	0.73%(e)
Before reimbursement/fee waiver	2.26%(e)	0.74%	0.73%	0.73%	0.73%(e)
Net investment income (loss), to average net assets	0.15%(e)	4.47%	3.82%	4.79%	3.60%(e)
Portfolio turnover rate	10%(d)	1028%	375%	384%	662%(d)

213

Financial Highlights

	Transamerica JPMorgan
	International Bond
	October 31,	October 31,	October 31,
	2008	2007	2006(a)
Net Asset Value
Beginning of period	$11.00	$10.51	$10.00
Investment Operations
Net Investment income (loss)(b)	0.29	0.28	0.22
Net realized and unrealized gain (loss) on investments	(0.29)	0.59	0.49
Total from investment operations	–(g)	0.87	0.71
Distributions
Net investment income	(0.44)	(0.38)	(0.20)
Net realized gains on investments	–	–	–
Total distributions	(0.44)	(0.38)	(0.20)
Net Asset Value
End of period	$10.56	$11.00	$10.51
Total Return(c)	(0.14%)	8.55%	7.12%(d)
Net Assets End of Period	$ 699,078	$761,827	$682,254
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.61%	0.61%	0.64%(e)
Before reimbursement/fee waiver	0.61%	0.61%	0.64%(e)
Net investment income (loss), to average net assets	2.55%	2.68%	2.34%(e)
Portfolio turnover rate	74%	86%	145%(d)

	Transamerica PIMCO Total Return
	October 31,	October 31,	October 31,
	2008	2007	2006(a)
Net Asset Value
Beginning of period	$10.47	$10.28	$10.12
Investment Operations
Net Investment income (loss)(b)	0.49	0.46	0.41
Net realized and unrealized gain (loss) on investments	(0.88)	0.18	0.12
Total from investment operations	(0.39)	0.64	0.53
Distributions
Net investment income	(0.44)	(0.44)	(0.37)
Net realized gains on investments	(0.06)	(0.01)	–
Total distributions	(0.50)	(0.45)	(0.37)
Net Asset Value
End of period	$9.58	$10.47	$10.28
Total Return(c)	(4.04%)	6.33%	5.33%(d)
Net Assets End of Period	$ 555,428	$ 540,310	$ 268,173
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.75%	0.75%	0.80%(e)
Before reimbursement/fee waiver	0.75%	0.75%	0.80%(e)
Net investment income (loss), to average net assets	4.66%	4.39%	4.18%(e)
Portfolio turnover rate	751%	756%	544%(d)

214

Financial Highlights

	Transamerica UBS
	Dynamic Alpha		Transamerica Flexible Income
	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007(a)	2008	2007	2006	2005(a)
Net Asset Value
Beginning of period	$9.83	$10.00	$9.17	$9.42	$9.35	$9.68
Investment Operations
Net Investment income (loss)(b)	0.18	0.09	0.50	0.53	0.50	0.40
Net realized and unrealized gain (loss) on investments	(1.30)	(0.26)	(1.90)	(0.26)	0.05	(0.32)
Total from investment operations	(1.12)	(0.17)	(1.40)	0.27	0.55	0.08
Distributions
Net investment income	(0.11)	–	(0.52)	(0.52)	(0.48)	(0.37)
Net realized gains on investments	–	–	–	–	–	(0.04)
Total distributions	(0.11)	–	(0.52)	(0.52)	(0.48)	(0.41)
Net Asset Value
End of period	$8.60	$9.83	$7.25	$9.17	$9.42	$9.35
Total Return(c)	(11.55%)	(1.70%)(d)	(16.02%)	2.93%	6.04%	0.85%(d)
Net Assets End of Period	$ 165,567	$ 209,382	$ 128,108	$ 370,611	$ 221,116	$ 110,709
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	1.51%	1.51%(e)	0.77%	0.80%	0.86%	0.85%(e)
Before reimbursement/fee waiver	1.51%	1.51%(e)	0.77%	0.80%	0.86%	0.85%(e)
Net investment income (loss), to average net assets	1.81%	1.16%(e)	5.67%	5.71%	5.35%	4.25%(e)
Portfolio turnover rate	84%	45%(d)	98%	108%	110%	58%(d)

	Transamerica
	High Yield Bond
	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005(a)
Net Asset Value
Beginning of period	$9.17	$9.24	$9.02	$9.39
Investment Operations
Net Investment income (loss)(b)	0.69	0.65	0.67	0.59
Net realized and unrealized gain (loss) on investments	(2.85)	(0.07)	0.18	(0.37)
Total from investment operations	(2.16)	0.58	0.85	0.22
Distributions
Net investment income	(0.66)	(0.65)	(0.63)	(0.59)
Net realized gains on investments	–	–	–	–
Total distributions	(0.66)	(0.65)	(0.63)	(0.59)
Net Asset Value
End of period	$6.35	$9.17	$9.24	$9.02
Total Return(c)	(25.05%)	6.39%	9.81%	2.33%(d)
Net Assets End of Period	$ 418,923	$ 331,300	$ 315,252	$ 40,860
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.65%	0.65%	0.66%	0.66%(e)
Before reimbursement/fee waiver	0.65%	0.65%	0.66%	0.66%(e)
Net investment income (loss), to average net assets	8.34%	6.96%	7.29%	6.60%(e)
Portfolio turnover rate	38%	80%	73%	71%(d)

215

Financial Highlights

					Transamerica Loomis
	Transamerica Short-Term Bond				Sayles Bond
	October 31,	October 31,	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005(a)	2008	2007(a)
Net Asset Value
Beginning of period	$9.82	$9.84	$9.79	$10.00	$10.19	$10.00
Investment Operations
Net Investment income (loss)(b)	0.43	0.47	0.40	0.28	0.60	0.45
Net realized and unrealized gain (loss) on investments	(0.54)	(0.04)	0.05	(0.22)	(2.88)	(0.01)
Total from investment operations	(0.11)	0.43	0.45	0.06	(2.28)	0.44
Distributions
Net investment income	(0.43)	(0.45)	(0.40)	(0.27)	(0.57)	(0.25)
Net realized gains on investments	–	–	–	–	–	–
Total distributions	(0.43)	(0.45)	(0.40)	(0.27)	(0.57)	(0.25)
Net Asset Value
End of period	$9.28	$9.82	$9.84	$9.79	$7.34	$10.19
Total Return(c)	(1.22%)	4.45%	4.72%	0.49%(d)	(23.56%)	4.50%(d)
Net Assets End of Period	$ 492,333	$ 563,889	$ 379,442	$ 174,302	$ 577,368	$ 513,249
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.68%	0.67%	0.70%	0.71%(e)	0.69%	0.73%(e)
Before reimbursement/fee waiver	0.68%	0.67%	0.70%	0.71%(e)	0.69%	0.73%(e)
Net investment income (loss), to average net assets	4.38%	4.81%	4.10%	2.92%(e)	6.34%	5.42%(e)
Portfolio turnover rate	67%	117%	100%	153%(d)	24%	18%(d)

	Transamerica Van Kampen Emerging Markets Debt
	October 31,	October 31,	October 31,	October 31,
	2008	2007	2006	2005(a)
Net Asset Value
Beginning of period	$11.23	$10.91	$10.45	$10.00
Investment Operations
Net Investment income (loss)(b)	0.61	0.59	0.55	0.49
Net realized and unrealized gain (loss) on investments	(2.72)	0.46	0.52	0.45
Total from investment operations	(2.11)	1.05	1.07	0.94
Distributions
Net investment income	(0.79)	(0.63)	(0.54)	(0.49)
Net realized gains on investments	(0.35)	(0.10)	(0.07)	–
Total distributions	(1.14)	(0.73)	(0.61)	(0.49)
Net Asset Value
End of period	$7.98	$11.23	$10.91	$10.45
Total Return(c)	(20.81%)	9.94%	10.61%	9.36%(d)
Net Assets End of Period	$ 320,350	$ 317,328	$ 425,726	$ 136,022
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.98%	1.03%	1.03%	1.07%(e)
Before reimbursement/fee waiver	0.98%	1.03%	1.03%	1.07%(e)
Net investment income (loss), to average net assets	5.92%	5.36%	5.24%	4.91%(e)
Portfolio turnover rate	81%	79%	79%	67%(d)

216

Financial Highlights

	Transamerica Money Market
	October 31,	October 31,	October 31,
	2008	2007	2006(a)
Net Asset Value
Beginning of period	$1.00	$1.00	$1.00
Investment Operations
Net Investment income (loss)(b)	0.03	0.05	0.04
Net realized and unrealized gain (loss) on investments	–(g)	–	–
Total from investment operations	0.03	0.05	0.04
Distributions
Net investment income	(0.03)	(0.05)	(0.04)
Net realized gains on investments	–	–(g)	–
Total distributions	(0.03)	(0.05)	(0.04)
Net Asset Value
End of period	$1.00	$1.00	$1.00
Total Return(c)	2.84%	4.98%	4.30%(d)
Net Assets End of Period	$ 29,327	$ 34,673	$ 26,466
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver	0.48%	0.48%	0.48%(e)
Before reimbursement/fee waiver	0.49%	0.52%	0.51%(e)
Net investment income (loss), to average net assets	2.89%	4.88%	4.39%(e)

^(a) Class I commenced operations according to the table below.

^(b) Calculation is based on average number of shares outstanding.

^(c) Total return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase.

^(d) Not annualized.

^(e) Annualized.

^(f) Includes recaptured expenses by the investment adviser. The impact of recaptured expenses was 0.02%.

^(g) Rounds to less than $(0.01) or $0.01.

^(h) Includes dividends on securities sold short (representing 1.56% and 1.30% of Average Net Assets for 2007 and 2008, respectively).

⁽ⁱ⁾ Includes recaptured expenses by the investment adviser. The impact of recaptured expenses was 0.01%.

CLASS I COMMENCEMENT OF OPERATIONS

Transamerica American Century Large Company Value	November 15, 2005
Transamerica Bjurman, Barry Micro Emerging Growth	August 1, 2006
Transamerica BlackRock Large Cap Value	November 15, 2005
Transamerica JPMorgan Mid Cap Value	November 15, 2005
Transamerica Jennison Growth	November 15, 2005
Transamerica Legg Mason Partners Investors Value	November 15, 2005
Transamerica Marsico Growth	November 15, 2005
Transamerica Third Avenue Value	May 1, 2007
Transamerica Oppenheimer Small- & Mid-Cap Value	August 1, 2006
Transamerica BNY Mellon Market Neutral Strategy	January 3, 2007
Transamerica Equity	November 15, 2005
Transamerica Growth Opportunities	November 15, 2005
Transamerica Small/Mid Cap Value	November 15, 2005
Transamerica UBS Large Cap Value	November 8, 2004
Transamerica Van Kampen Mid-Cap Growth	January 3, 2006
Transamerica Van Kampen Small Company Growth	November 8, 2004
Transamerica BlackRock Global Allocation	December 6, 2005
Transamerica Clarion Global Real Estate Securities	November 15, 2005
Transamerica Evergreen Health Care	November 8, 2004
Transamerica BlackRock Natural Resources	January 3, 2007
Transamerica Federated Market Opportunity	December 6, 2005
Transamerica Convertible Securities	November 15, 2005
Transamerica Science & Technology	November 15, 2005
Transamerica AllianceBernstein International Value	December 6, 2005
Transamerica Schroders International Small Cap	March 1, 2008
Transamerica Evergreen International Small Cap	November 8, 2004
Transamerica MFS International Equity	June 10, 2008
Transamerica Marsico International Growth	November 8, 2004
Transamerica Neuberger Berman International	December 6, 2005
Transamerica Thornburg International Value	September 15, 2008
Transamerica Oppenheimer Developing Markets	December 6, 2005
Transamerica WMC Emerging Markets	September 30, 2008
Transamerica PIMCO Real Return TIPS	November 8, 2004
Transamerica JPMorgan International Bond	December 6, 2005
Transamerica PIMCO Total Return	November 15, 2005
Transamerica UBS Dynamic Alpha	January 3, 2007
Transamerica Flexible Income	November 8, 2004
Transamerica High Yield Bond	November 8, 2004
Transamerica Short-Term Bond	November 8, 2004
Transamerica Loomis Sayles Bond	January 3, 2007
Transamerica Van Kampen Emerging Markets Debt	November 8, 2004
Transamerica Money Market	November 15, 2005

217

Section B — Shareholder Information

Investment Adviser

Transamerica Funds’ Board of Trustees is responsible for managing the business affairs of Transamerica Funds. The Board oversees the operation of Transamerica Funds by its officers. It also reviews the management of each fund’s assets by TAM and investment sub-advisers. You can find additional information about Transamerica Funds’ Trustees and officers in the SAI.

TAM, located at 570 Carillon Parkway, St. Petersburg, Florida 33716, serves as investment adviser for Transamerica Funds. The investment adviser hires investment sub-advisers to furnish investment advice and recommendations and has entered into sub-advisory agreements with each fund’s sub-adviser. The investment adviser also monitors the sub-adviser’s buying and selling of portfolio securities and administration of the funds. For these services, TAM is paid investment advisory fees. These fees are calculated on the average daily net assets of each fund, and are paid at the rates previously shown in this prospectus.

AEGON USA Investment Management, LLC and Transamerica Investment Management, LLC are affiliates of TAM and Transamerica Funds.

TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) (“Western Reserve”) and AUSA Holding Company (23%) (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group.

From time to time TAM and/or its affiliates pay, out of their own resources and not out of fund assets, for distribution and/or administrative services provided by broker-dealers and other financial intermediaries. See the section titled “Other Distribution or Service Arrangements” in this prospectus.

The funds may rely on an Order from the SEC (Release IC- 23379 dated August 5, 1998) that permits Transamerica Funds and its investment adviser, TAM, subject to certain conditions, and without the approval of shareholders to:

(1)	employ a new unaffiliated sub-adviser for a fund pursuant to the terms of a new investment sub-advisory agreement, either as a replacement for an existing sub-adviser or as an additional sub-adviser;
(2)	materially change the terms of any sub-advisory agreement; and
(3)	continue the employment of an existing sub-adviser on sub-advisory contract terms where a contract has been assigned because of a change of control of the sub-adviser.

In such circumstances, shareholders would receive notice and information about the new sub-adviser within ninety (90) days after the hiring of any new sub-adviser.

Buying and Selling shares

Class I shares of the funds in this prospectus are currently primarily offered for investment in certain affiliated funds of funds (also referred to as “strategic asset allocation funds”). Shares of the funds are also made available to other investors, including institutional investors such as foreign insurers, domestic insurance companies, and their separate accounts, and eligible retirement plans whose recordkeepers or financial service firm intermediaries have entered into agreements with Transamerica Funds or its agents.

Shares may be sold (or “redeemed”) at any time. Proceeds from the redemption of shares will usually be sent to the redeeming shareholder within three business days after receipt in good order of a request for redemption. However, Transamerica Funds has the right to take up to seven days to pay redemption proceeds, and may postpone payment under certain circumstances, as authorized by law. Shares will normally be redeemed for cash, although each fund retains the right to redeem its shares in kind. Please see the SAI for more details.

Pricing of Shares

How Share Price Is Determined

The price at which shares are purchased or redeemed is the net asset value per share (“NAV”) that is next calculated following receipt and acceptance of a purchase order in good order or receipt of a redemption order in good order by the fund or an authorized intermediary.

When Share Price Is Determined

The NAV of each fund (or class thereof) is determined on each day the New York Stock Exchange (“NYSE”) is open for business. The NAV is not determined on days when the NYSE is closed (generally New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas). Foreign securities may trade in their primary markets on weekends or other days when a fund does not price its shares (therefore, the NAV of a fund holding foreign securities may change on days when shareholders will not be able to buy or sell shares of the funds).

Purchase orders received in good order and accepted, and redemption orders received in good order, before the close of business on the NYSE, usually 4:00 p.m. Eastern Time, receive the NAV determined as of the close of the NYSE that day. Purchase and redemption requests received after the NYSE is closed receive the NAV determined as of the close of the NYSE the next day the NYSE is open.

Purchase orders for shares of the Transamerica asset allocation funds that are received in good order and accepted before the close of business on the NYSE receive the NAV determined as of the close of the NYSE that day. For direct purchases, corresponding orders for shares of the underlying constituent funds are priced on the same day that orders for shares of the asset allocation funds are received and accepted. For purchases of shares of the Transamerica asset allocation funds through the NSCC, orders for shares of the underlying constituent funds will

218

Section B — Shareholder Information

be placed after the receipt and acceptance of the settled purchase order for shares of the asset allocation funds. For investments in separate accounts of insurance companies that invest in Class I shares of the funds, orders for Class I shares will be placed after the receipt and acceptance of the investment in the insurance company separate account.

How NAV Is Calculated

The NAV of each fund (or class thereof) is calculated by taking the value of its net assets and dividing by the number of shares of the fund (or class) that are then outstanding.

The Board of Trustees has approved procedures to be used to value the funds’ securities for the purposes of determining the funds’ NAV. The valuation of the securities of the funds is determined in good faith by or under the direction of the Board. The Board has delegated certain valuation functions for the funds to TAM.

In general, securities and other investments are valued based on market prices at the close of regular trading on the NYSE. Fund securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-denominated foreign securities or ADRs, are valued at the closing price on the exchange or system where the security is principally traded. With respect to securities traded on the NASDAQ/NMS, such closing price may be the last reported sale price or the NASDAQ Official Closing Price (“NOCP”). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value should be determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales for that day on any exchange or system, a security is valued at the closing bid quotes on the exchange or system where the security is principally traded, or at the NOCP, if applicable. Foreign securities traded on U.S. exchanges are generally priced using last sale price regardless of trading activity. Securities traded over-the-counter are valued at the mean of the last bid and asked prices. The market price for debt obligations is generally the price supplied by an independent third party pricing service approved by the funds’ Board, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Investments in securities maturing in 60 days or less may be valued at amortized cost. Foreign securities generally are valued based on quotations from the primary market in which they are traded, and are converted from the local currency into U.S. dollars using current exchange rates. Market quotations for securities prices may be obtained from automated pricing services. Shares of open-end investment companies are generally valued at the net asset value per share reported by that investment company.

When a market quotation for a security is not readily available (which may include closing prices deemed to be unreliable because of the occurrence of a subsequent event), a valuation committee appointed by the Board of Trustees may, in good faith, establish a value for the security in accordance with fair valuation procedures adopted by the Board. The types of securities for which such fair value pricing may be required include, but are not limited to: foreign securities, where a significant event occurs after the close of the foreign market on which such security principally trades that is likely to have changed the value of such security, or the closing value is otherwise deemed unreliable; securities of an issuer that has entered into a restructuring; securities whose trading has been halted or suspended; fixed-income securities that have gone into default and for which there is no current market value quotation; and securities that are restricted as to transfer or resale. The funds use a fair value model developed by an independent third party pricing service to price foreign equity securities on days when there is a certain percentage change in the value of a domestic equity security index, as such percentage may be determined by TAM from time to time.

Valuing securities in accordance with fair value procedures involves greater reliance on judgment than valuing securities based on readily available market quotations. The valuation committee makes fair value determinations in good faith in accordance with funds’ valuation procedures. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service. There can be no assurance that a fund could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the fund determines its NAV per share.

Features and Policies

Market Timing/Excessive Trading

Some investors try to profit from various short-term or frequent trading strategies known as market timing. Examples of market timing include switching money into funds when their share prices are expected to rise and taking money out when their share prices are expected to fall, and switching from one fund to another and then back again after a short period of time. As money is shifted in and out, a fund may incur expenses for buying and selling securities. Excessive purchases, redemptions or exchanges of fund shares may disrupt portfolio management, hurt fund performance and drive fund expenses higher. For example, a fund may be forced to liquidate investments as a result of short-term trading and incur increased brokerage costs or realize taxable capital gains without attaining any investment advantage. These costs are generally borne by all shareholders, including long-term investors who do not generate these costs.

Transamerica Funds’ Board of Trustees has approved policies and procedures that are designed to discourage market timing or excessive trading which include limitations on the number of transactions in fund shares. If you intend to engage in such practices, we request that you do not purchase shares of any of the funds.  Each fund reserves the right to reject any request to purchase shares, including purchases in connection with an exchange transaction, which the fund reasonably believes to be in connection with market timing or excessive trading.

However, because the shares of the funds may be sold to strategic asset allocation funds, other investors (including institutional investors such as foreign insurers, domestic insurance companies, and their separate accounts), and eligible retirement plans whose recordkeepers or financial service firm intermediaries have entered into agreements with Transamerica Funds or its agents, the funds’ policies and procedures to discourage market timing or excessive trading are enforced by those entities, as appropriate, rather than the funds. Additional information about the asset allocation funds’ policies and procedures are available in the prospectus of the asset allocation funds. Furthermore, reallocations in the funds

219

Section B — Shareholder Information

by an asset allocation fund in furtherance of a fund’s investment objective are not considered to be market timing or excessive trading.

Orders to purchase, redeem or exchange shares forwarded by accounts maintained on behalf of institutional investors or insurers (for example, separate accounts of insurance companies) with respect to their accounts with Transamerica Funds will not be considered to be market timing or excessive trading for purposes of Transamerica Funds’ policies. However, the market timing and excessive trading policies of these investors/insurers (or their accounts) may apply to transactions by persons who, in turn, invest through these investors/insurers (or through their accounts).

Asset Allocation Funds

The asset allocation funds discussed above that invest in certain series of Transamerica Funds may own a significant portion of the shares of a Transamerica Funds fund. Transactions by a fund of funds may be disruptive to an underlying Transamerica Fund.

Investment Policy Changes

Transamerica American Century Large Company Value, Transamerica Bjurman, Barry Micro Emerging Growth, Transamerica BlackRock Large Cap Value, Transamerica JPMorgan Mid Cap Value, Transamerica Oppenheimer Small- & Mid-Cap Value, Transamerica Equity, Transamerica Small/Mid Cap Value, Transamerica UBS Large Cap Value, Transamerica Van Kampen Mid-Cap Growth, Transamerica Van Kampen Small Company Growth, Transamerica Clarion Global Real Estate Securities, Transamerica Evergreen Health Care, Transamerica Convertible Securities, Transamerica Science & Technology, Transamerica Evergreen International Small Cap, Transamerica MFS International Equity, Transamerica Oppenheimer Developing Markets, Transamerica WMC Emerging Markets, Transamerica PIMCO Real Return TIPS, Transamerica JPMorgan International Bond, Transamerica High Yield Bond, Transamerica Short-Term Bond, Transamerica Loomis Sayles Bond, Transamerica BlackRock Natural Resources, Transamerica Schroders International Small Cap and Transamerica Van Kampen Emerging Markets Debt, as part of each fund’s investment policy, invest at least 80% of its assets (defined as net assets plus the amount of any borrowings for investment purposes) in certain investments as indicated in this prospectus. Shareholders will be provided with at least 60 days’ prior written notice of any changes in the 80% investment policy. Such notice will comply with the conditions set forth in any applicable SEC rules then in effect. Although other funds described in this prospectus may have an 80% investment policy, they are not required to give 60-days’ notice in case of a change.

Unless expressly designated as fundamental, all policies and procedures of the funds, including their investment objectives, may be changed at any time by Transamerica Funds’ Board of Trustees without shareholder approval. The investment strategies employed by a fund may also be changed without shareholder approval.

To the extent authorized by law, Transamerica Funds and each of the funds reserve the right to discontinue offering shares at any time, to merge a class of shares or to cease operations entirely.

Distribution of Shares

Underwriting Agreement

Transamerica Funds has an Underwriting Agreement with Transamerica Capital, Inc. (“TCI”), located at 4600 South Syracuse Street, Suite 1100, Denver, CO 80237. TCI is an affiliate of TAM and Transamerica Funds. Under this agreement, TCI underwrites and distributes all classes of fund shares and bears the expenses of offering these shares to the public.

Other Distribution or Service Arrangements

TCI, TAM, TIM and other fund sub-advisers, directly or through TCI, out of their past profits and other available sources provides additional cash payments or non-cash compensation to some, but not all, brokers and other financial intermediaries who sell shares of the asset allocation funds that invest in the funds or render investor services to asset allocation fund shareholders. Such payments and compensation are in addition to the sales charges, Rule 12b-1 plan fees, service fees and other fees paid, directly or indirectly, by the asset allocation funds to such brokers and other financial intermediaries. These arrangements are sometimes referred to as “revenue sharing” arrangements. Revenue sharing is not an expense of the funds, does not result in increased expenses, are not reflected in the fees and expenses sections of this prospectus and are described in more detail in the prospectus of the funds of funds. As of the date of this prospectus, TAM has agreed to pay Universal Life Insurance Company (“Universal Life”) a fee equal, on an annual basis, to 0.25% of the average daily net assets attributable to investments by Universal Life’s separate accounts in the Class I shares of the funds for administrative and other services provided or procured by Universal Life in connection with such investments in the funds. Investors may be able to obtain more information about these arrangements from their financial intermediaries.

TCI, TAM and their affiliates may enter into arrangements with affiliated entities that provide administrative, recordkeeping and other services with respect to one or more of the funds. Payment for these services is made by TCI, TAM and their affiliates out of past profits and other available sources and may take the form of internal credit, recognition or cash payments. These payments do not result in increased fund expenses and are not reflected in the fees and expenses tables included in the prospectus. TCI, TAM and their affiliates may also enter into similar arrangements with unaffiliated entities.

Distributions and Taxes

Taxes On Distributions In General

Each fund will distribute all or substantially all of its net investment income and net capital gains to its shareholders each year. Although a fund will not have to pay income tax on amounts it distributes to shareholders, most shareholders will be taxed on amounts they receive. If a fund declares a dividend in October, November, or December payable to shareholders of

220

Section B — Shareholder Information

record in such a month, but pays it in the following January, shareholders will be taxed on the dividend as if they received it in the year in which it was declared.

Each fund pays dividend distributions annually in December, except Transamerica Clarion Global Real Estate Securities, Transamerica Balanced, Transamerica Loomis Sayles Bond and Transamerica Value Balanced each pay dividend distributions quarterly in March, June, September and December; and Transamerica Federated Market Opportunity, Transamerica JPMorgan International Bond, Transamerica PIMCO Real Return TIPS, Transamerica PIMCO Total Return, Transamerica Convertible Securities, Transamerica Flexible Income, Transamerica High Yield Bond, Transamerica Money Market, Transamerica Short-Term Bond and Transamerica Van Kampen Emerging Markets Debt each pay dividend distributions monthly. If necessary, each fund may make distributions at other times as well.

You normally will be taxed on distributions you receive from a fund, regardless of whether they are paid to you in cash or are reinvested in additional fund shares.

Current U.S. federal income tax law generally provides for a maximum tax rate for individual taxpayers of 15% on long-term capital gains and on qualified dividend income. These rates do not apply to corporate taxpayers. The following are guidelines for how certain distributions by a fund are generally taxed to individual taxpayers:

-   Distributions of net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) will be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets).

-   Distributions designated by the fund as “qualified dividend income” will also be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets). Qualified dividend income generally is income derived from dividends from U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that a fund receives in respect of stock of certain foreign corporations will be qualified dividend income if that stock is readily tradable on an established U.S. securities market.

-   Other distributions generally will be taxed at the ordinary income tax rate applicable to the shareholder.

The funds will send you a tax report annually summarizing the amount of and the tax aspects of your distributions. If you buy shares of a fund shortly before it makes a distribution (other than distributions paid by Transamerica Money Market that are not paid out of short-term or long-term capital gains), the distribution will be taxable to you even though it may actually be a return of a portion of your investment. This is known as “buying a dividend.”

Investors who invest through tax-deferred accounts, such as IRAs, 403(b) accounts, and qualified retirement plans, will ordinarily not be subject to tax until a distribution is made from the account, at which time such distribution is generally taxed as ordinary income. These accounts are subject to complex tax rules and tax-deferred account investors should consult their tax advisers regarding their investments in a tax-deferred account.

Taxes on the Sale of Shares

If you sell shares of a fund or exchange them for shares of another fund, you generally will have a capital gain or loss, which will be a long-term capital gain or loss if you held the shares for more than one year; otherwise it will generally be a short-term capital gain or loss. Such gain or loss is computed by subtracting your tax basis in the shares from the redemption proceeds in the case of a sale or the value of the shares received in the case of an exchange. Because your tax basis depends on the original purchase price and on the price at which any dividends may have been reinvested, you should be sure to keep account statements so that you or your tax return preparer will be able to determine whether a sale will result in a taxable gain. Any loss recognized on shares held for six months or less will be treated as a long-term capital loss to the extent of any amounts treated as distributions of long-term capital gain that were received with respect to the shares, including distributions of net capital gain and any amount credited to you as undistributed capital gain. Note that money market funds typically maintain a stable net asset value of $1.00 per share. Assuming Transamerica Money Market maintains a stable net asset value, you will typically not recognize gain or loss upon the sale, redemption, or exchange of shares of this fund.

Withholding Taxes

As with all mutual funds, the funds may be required to apply backup withholding of U.S. federal income tax at the fourth lowest tax rate applicable to unmarried individuals (currently 28%) on all taxable distributions payable to you if you fail to provide the funds with your correct taxpayer identification number or to make required certifications, or if you have been notified by the IRS that you are subject to backup withholding. Backup withholding is not an additional tax, but is a method by which the IRS ensures that it will collect taxes otherwise due. Any amounts withheld may be credited against your U.S. federal income tax liability.

Other Tax Information

This tax discussion is for general information only. In addition to federal income taxes, you may be subject to state, local or foreign taxes on payments received from, and investments made in, shares of a Transamerica fund. More information is provided in the SAI of the funds. You should also consult your own tax adviser for information regarding all tax consequences applicable to your investments in Transamerica Funds.

221

Appendix A

More on Strategies and Risks

HOW TO USE THIS SECTION

In the discussions of the individual fund(s), you found descriptions of the principal strategies and risks associated with such fund(s). In those pages, you were referred to this section for more information. For best understanding, first read the description of the fund you are interested in, then refer to this section. For even more discussions of strategies and risks, see the SAI, which is available upon request. See the back cover of this prospectus for information on how to order the SAI.

ASSET ALLOCATION FUNDS AS INVESTORS

The funds described in this prospectus are offered for investment to strategic asset allocation funds. These strategic asset allocation funds may own a significant portion of the assets of the funds. Transactions by the strategic allocation funds, such as rebalancings or redemptions, may be disruptive to a fund. Redemptions by one or more strategic allocation funds also may have the effect of rendering a fund too small effectively to pursue its investment goal, and may also increase the fund’s expenses, perhaps significantly.

DIVERSIFICATION

The Investment Company Act of 1940 (“1940 Act”) classifies investment companies as either diversified or non-diversified. Diversification is the practice of spreading a fund’s assets over a number of issuers to reduce risk. A non-diversified fund has the ability to take larger positions in fewer issuers. Because the appreciation or depreciation of a single security may have a greater impact on the net asset value of a non-diversified fund, its share price can be expected to fluctuate more than a diversified fund.

All the funds (except Transamerica Clarion Global Real Estate Securities, Transamerica Science & Technology, Transamerica Evergreen Health Care, Transamerica JPMorgan International Bond, Transamerica PIMCO Real Return TIPS, Transamerica Third Avenue Value, Transamerica BlackRock Natural Resources, Transamerica UBS Dynamic Alpha and Transamerica Van Kampen Emerging Markets Debt) qualify as diversified funds under the 1940 Act.

Transamerica Clarion Global Real Estate Securities, Transamerica Science & Technology, Transamerica Evergreen Health Care, Transamerica JPMorgan International Bond, Transamerica PIMCO Real Return TIPS, Transamerica Third Avenue Value, Transamerica BlackRock Natural Resources, Transamerica UBS Dynamic Alpha and Transamerica Van Kampen Emerging Markets Debt each reserves the right to become a diversified investment company (as defined by the 1940 Act).

INVESTING IN COMMON STOCKS

Stocks may be volatile – their prices may go up and down dramatically over the shorter term. Many factors may cause common stocks to go up and down in price. A major factor is the financial performance of the company that issues the stock. Other factors include the overall economy, conditions in a particular industry, and monetary factors like interest rates. Because the stocks a fund may hold fluctuate in price, the value of a fund’s investments will go up and down.

INVESTING IN PREFERRED STOCKS

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

INVESTING IN CONVERTIBLE SECURITIES

Since preferred stocks and corporate bonds generally pay a stated return, their prices usually do not depend on the price of the company’s common stock. But some companies issue preferred stocks and bonds that are convertible into their common stocks. Linked to the common stock in this way, convertible securities typically go up and down in price inversely to interest rates as the common stock does, adding to their market risk. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

VOLATILITY

The more an investment goes up and down in price, the more volatile it is said to be. Volatility increases the market risk (i.e., risk of loss due to fluctuation in value) because even though your fund may go up more than the market in good times, it may also go down more than the market in bad times. If you decide to sell when a volatile fund is down, you could lose more. Price changes may be temporary and for extended periods.

INVESTING IN BONDS

Like common stocks, bonds fluctuate in value, although the factors causing this may be different, including:

-   CHANGES IN INTEREST RATES.  Bond prices tend to move inversely to interest rates. Why? Because when interest rates on new bond issues go up, rates on existing bonds stay the same and they become less desirable. When rates go down, the reverse happens. This is also true for most preferred stocks and some convertible securities.

-   LENGTH OF TIME TO MATURITY.  When a bond matures, the issuer must pay the owner its face value. If the maturity date is a long way off, many things can affect its value, so a bond generally is more volatile the farther it is from maturity. As that date approaches, fluctuations usually become smaller and the price gets closer to face value.

APPENDIX A-1

Appendix A

More on Strategies and Risks

-   DEFAULTS.  Bond issuers make at least two promises: (1) to pay interest during the bond’s term and (2) to return principal when it matures. If an issuer fails to keep one or both of these promises, the bond will probably drop in price dramatically, and may even become worthless.

-   DECLINES IN RATINGS.  At the time of issue, most bonds are rated by professional rating services, such as Moody’s Investors Service (“Moody’s”) and Standard & Poor’s Ratings Group (“S&P”). The stronger the financial backing behind the bond, the higher the rating. If this backing is weakened or lost, the rating service may downgrade the bond’s rating. This is virtually certain to cause the bond to drop in price.

-   LOW QUALITY.  High-yield/high-risk securities (commonly known as “junk bonds”) have greater credit risk, are more sensitive to interest rate movements, are considered more speculative, have a greater vulnerability to economic changes are subject to greater price volatility and are less liquid than higher quality fixed-income securities. These securities may be more susceptible to credit risk and market risk than higher quality debt securities because their issuers may be less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for higher quality debt securities. As a result, a sub-adviser of a fund may find it more difficult to sell these securities or may have to sell them at lower prices. High yield securities are not generally meant for short-term investing.

-   LOSS OF LIQUIDITY.  If a bond is downgraded, or for other reasons drops in price, or if the bond is a type of investment that falls out of favor with investors, the market demand for it may “dry up.” In that case, the bond may be hard to sell or “liquidate” (convert to cash). Please see Appendix B for a description of bond ratings.

INVESTING IN FOREIGN SECURITIES

Foreign securities are investments offered by non-U.S. companies, governments and government agencies. They involve risks in addition to those associated with securities of domestic issuers, including:

-   CHANGES IN CURRENCY VALUES.  Foreign securities may be sold in currencies other than U.S. dollars. If a currency’s value drops relative to the dollar, the value of your fund shares could drop too. Also, dividend and interest payments may be lower. Factors affecting exchange rates include, without limitation: differing interest rates among countries; balances of trade; amount of a country’s overseas investments; and intervention by banks. Some funds also invest in American Depositary Receipts (“ADRs”) and American Depositary Shares (“ADSs”). They represent securities of foreign companies traded on U.S. exchanges, and their values are expressed in U.S. dollars. Changes in the value of the underlying foreign currency will change the value of the ADRs or ADSs. The fund may incur costs when it converts other currencies into dollars, and vice-versa.

-   CURRENCY SPECULATION.  The foreign currency market is largely unregulated and subject to speculation. A fund’s investments in foreign currency-denominated securities may reduce the returns of the fund.

-   DIFFERING ACCOUNTING AND REPORTING PRACTICES.  Foreign tax laws are different, as are laws, practices and standards for accounting, auditing and reporting data to investors.

-   LESS INFORMATION AVAILABLE TO THE PUBLIC.  Foreign companies usually make far less information available to the public.

-   LESS REGULATION.  Securities regulations in many foreign countries are more lax than in the U.S. In addition, regulation of banks and capital markets can be weak.

-   MORE COMPLEX NEGOTIATIONS.  Because of differing business and legal procedures, a fund might find it hard to enforce obligations or negotiate favorable brokerage commission rates.

-   LESS LIQUIDITY/MORE VOLATILITY.  Some foreign securities are harder to convert to cash than U.S. securities, and their prices may fluctuate more dramatically.

-   SETTLEMENT DELAYS.  “Settlement” is the process of completing payment and delivery of a securities transaction. In many countries, this process takes longer than it does in the U.S.

-   HIGHER CUSTODIAL CHARGES.  Fees charged by the fund’s custodian for holding shares are higher for foreign securities than those of domestic securities.

-   VULNERABILITY TO SEIZURE AND TAXES.  Some governments can seize assets. They may also limit movement of assets from the country. Fund interest, dividends and capital gains may be subject to foreign withholding taxes.

-   POLITICAL OR FINANCIAL INSTABILITY AND SMALL MARKETS.  Developing countries can be politically unstable. Economies can be dominated by a few industries, and markets may trade a small number of securities.

-   DIFFERENT MARKET TRADING DAYS.  Foreign markets may not be open for trading the same days as U.S. markets are open and asset values can change before a transaction occurs.

-   CURRENCY HEDGING.  A fund may enter into forward currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting a fund’s currency exposure from one currency to another removes the fund’s opportunity to profit from the original currency and involves a risk of increased losses for the fund if the sub-adviser’s projection of future exchange rates is inaccurate.

APPENDIX A-2

Appendix A

More on Strategies and Risks

-   EMERGING MARKETS RISK.  Investing in the securities of issuers located in or principally doing business in emerging markets bear foreign exposure risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries typically are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid, more difficult to value and more volatile than investments in developed countries. As a result, a fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

INVESTING IN FUTURES, OPTIONS AND OTHER DERIVATIVES

Besides conventional securities, your fund may seek to increase returns by investing in financial contracts related to its primary investments. Such contracts, which include futures and options, involve additional risks and costs. Risks include, without limitation:

-   DERIVATIVES.  Certain of the funds use derivative instruments as part of their investment strategy. Generally, derivatives are financial contracts whose value depends upon, or is derived from, the value of an underlying asset, reference rate or index, and may relate to stocks, bonds, interest rates, currencies or currency exchange rates, commodities, and related indexes. Examples of derivative instruments include option contracts, futures contracts, options on futures contracts and swap agreements (including, but not limited to, credit default swaps). There is no assurance that the use of any derivatives strategy will succeed. Also, investing in financial contracts involve additional risks and costs, such as inaccurate market predictions which may result in losses instead of gains, and prices may not match so the benefits of the transaction might be diminished and a fund may incur substantial losses.

Swap transactions are privately negotiated agreements between a fund and a counterparty to exchange or swap investment cash flows or assets at specified intervals in the future. The obligations may extend beyond one year. There is no central exchange or market for swap transactions and therefore they are less liquid investments than exchange-traded instruments. A fund bears the risk that the counterparty could default under a swap agreement. Further, certain funds may invest in derivative debt instruments with principal and/or coupon payments linked to the value of commodities, commodity futures contracts or the performance of commodity indices. These are “commodity-linked” or “index-linked” notes. They are sometimes referred to as “structured notes” because the terms of the debt instrument may be structured by the issuer of the note and the purchaser of the note. The value of these notes will rise and fall in response to changes in the underlying commodity or related index or investment. These notes expose a fund economically to movements in commodity prices. These notes are subject to risks, such as credit, market and interest rate risks, that in general affect the value of debt securities. Therefore, at the maturity of the note, a fund may receive more or less principal than it originally invested. A fund might receive interest payments on the note that are more or less than the stated coupon interest payments.

A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other more traditional investments. The following provides a general discussion of important risk factors relating to all derivative instruments that may be used by the funds:

-   MANAGEMENT RISK.  Derivative products are highly specialized instruments that require investment techniques and risk analyses different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but also of the derivative itself, without the benefit of observing the performance of the derivative under all possible market conditions.

-   CREDIT RISK.  The use of a derivative instrument involves the risk that a loss may be sustained as a result of the failure of another party to the contract (counterparty) to make required payments or otherwise comply with the contract’s terms. Additionally, credit default swaps could result in losses if a fund does not correctly evaluate the creditworthiness of the company on which the credit default swap is based.

-   LIQUIDITY RISK.  Liquidity risk exists when particular investments are difficult to sell. Although most of the fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the fund, particularly during periods of market turmoil. When the fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the fund is forced to sell these investments to meet redemptions or for other cash needs, the fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

-   LEVERAGE RISK.  When the fund engages in transactions that have a leveraging effect on the fund’s portfolio, the value of the fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the fund would otherwise have. The fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause the fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

-   LACK OF AVAILABILITY.  Suitable derivatives transactions may not be available in all circumstances for risk management or other purposes. There is no assurance that a fund will engage in derivatives transactions at any time or from time to time. A fund’s ability to use derivatives may be limited by certain regulatory and tax considerations.

APPENDIX A-3

Appendix A

More on Strategies and Risks

-   MARKET AND OTHER RISKS.  Like most other investments, derivative instruments are subject to the risk that the market value of the instrument will change in a way that is detrimental to a fund’s interest. If a fund manager incorrectly forecasts the value of securities, currencies or interest rates or other economic factors in using derivatives for a fund, the fund might have been in a better position if it had not entered into the transaction at all. While some strategies involving derivative instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in other fund investments. A fund may also have to buy or sell a security at a disadvantageous time or price because the fund is legally required to maintain offsetting positions or asset coverage in connection with certain derivative transactions.

Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the lack of correlation with underlying assets, rates and indexes. Many derivatives, in particular privately negotiated derivatives, are complex and often valued subjectively. Improper valuations can result in increased cash payment requirements to counterparties or a loss of value to a fund. Also, the value of derivatives may not correlate perfectly, or at all, with the value of the assets, reference rates or indexes they are designed to closely track. In addition, a fund’s use of derivatives may cause the fund to realize higher amounts of short-term capital gains (generally taxed at ordinary income tax rates) than if the fund had not used such instruments.

INVESTING IN HYBRID INSTRUMENTS

Hybrid instruments combine elements of derivative contracts with those of another security (typically a fixed-income security). All or a portion of the interest or principal payable on a hybrid security is determined by reference to changes in the price of an underlying asset or by reference to another benchmark (such as interest rates, currency exchange rates or indices). Hybrid instruments also include convertible securities with conversion terms related to an underlying asset or benchmark. The risks of investing in hybrid instruments may reflect a combination of the risks of investing in securities, derivatives, and currencies. Thus, an investment in a hybrid instrument may entail significant risks in addition to those associated with traditional securities. Hybrid instruments are also potentially more volatile and may carry greater interest rate risks than traditional instruments. Moreover, depending on the structure of the particular hybrid, it may expose a fund to leverage risks or carry liquidity risks.

INVESTING IN FORWARD FOREIGN CURRENCY CONTRACTS

A forward foreign currency contract is an agreement between contracting parties to exchange an amount of currency at some future time at an agreed upon rate. These contracts are used as a hedge against fluctuations in foreign exchange rates. Hedging against a decline in the value of a currency does not eliminate fluctuations in the prices of securities, or prevent losses if the prices of the fund’s securities decline. Such hedging transactions preclude the opportunity for a gain if the value of the hedging currency should rise. Forward contracts may, from time to time, be considered illiquid, in which case they would be subject to the fund’s limitations on investing in illiquid securities. If a fund’s manager makes the incorrect prediction, the opportunity for loss can be magnified.

INVESTING IN FIXED-INCOME INSTRUMENTS

Some funds invest in “Fixed-Income Instruments,” which include, among others:

-   securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises, including issues by non-government-sponsored entities (like financial institutions) that carry direct guarantees from U.S. government agencies as part of government initiatives in response to the market crisis or otherwise (“U.S. Government Securities”);

-   corporate debt securities of U.S. and non-U.S. issuers, including convertible securities and corporate commercial paper;

-   mortgage-backed and other asset-backed securities;

-   inflation-indexed bonds issued both by governments and corporations;

-   structured notes, including hybrid or “indexed” securities, event-linked bonds and loan participations;

-   delayed funding loans and revolving credit facilities;

-   bank certificates of deposit, fixed time deposits and bankers’ acceptances;

-   repurchase agreements and reverse repurchase agreements;

-   debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises;

-   obligations of non-U.S. governments or their subdivisions, agencies and government-sponsored enterprises; and

-   obligations of international agencies or supranational entities.

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

-   market risk: fluctuations in market value

-   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

-   prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

-   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

-   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such

APPENDIX A-4

Appendix A

More on Strategies and Risks

subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Some funds may invest in derivatives based on Fixed-Income Instruments.

SOVEREIGN DEBT

Sovereign debt instruments, which are debt obligations issued or guaranteed by a foreign governmental entity, are subject to the risk that the governmental entity may delay or fail to pay interest or repay principal on debt that it has issued or guaranteed, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, relationships with other lenders such as commercial banks, the relative size of the governmental entity’s debt position in relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. If a governmental entity defaults, it may ask for more time in which to pay or for further loans, or it may ask for forgiveness of interest or principal on its existing debt. On the other hand, a governmental entity may be unwilling to renegotiate the terms of its sovereign debt. There may be no established legal process for a U.S. bondholder (such as the fund) to enforce its rights against a governmental entity that does not fulfill its obligations, nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected.

INVESTING IN STRUCTURED SECURITIES

Some funds may invest in various types of structured instruments, including securities that have demand, tender or put features, or interest rate rest features. Structured instruments may take the form of participation interests or receipts in underlying securities or other assets, and in some cases are backed by a financial institution serving as a liquidity provider. Some of these instruments may have an interest rate swap feature which substitutes a floating or variable interest rate for the fixed interest rate on an underlying security, and some may be asset-backed or mortgage-backed securities. Structured instruments are a type of derivative instrument and the payment and credit qualities of these instruments derive from the assets embedded in the structure from which they are issued.

SUBORDINATION RISK

Some funds may invest in securities, such as certain structured securities or high-yield debt securities, which are subordinated to more senior securities of the issuer, or which represent interests in pools of such subordinated securities. Under the terms of subordinated securities, payments that would otherwise be made to their holders may be required to be made to the holders of more senior securities, and/or the subordinated or junior securities may have junior liens, if they have any rights at all, in any collateral (meaning proceeds of the collateral are required to be paid first to the holders of more senior securities). Subordinated securities will be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

INVESTING IN WARRANTS AND RIGHTS

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

INVESTING IN DISTRESSED SECURITIES

Certain funds may invest in distressed securities. Distressed securities are speculative and involve substantial risks. Generally, a fund will invest in distressed securities when the sub-adviser believes they offer significant potential for higher returns or can be exchanged for other securities that offer this potential. However, there can be no assurance that a fund will achieve these returns or that the issuer will make an exchange offer or adopt a plan of reorganization. A fund will generally not receive interest payments on the distressed securities and may incur costs to protect its investment. In addition, distressed securities involve the substantial risk that principal will not be repaid. Distressed securities and any securities received in an exchange for such securities may be subject to restrictions on resale.

ZERO COUPON SECURITIES

Zero coupon securities do not pay interest or principal until final maturity unlike debt securities that provide periodic payments of interest (referred to as coupon payments). Investors buy zero coupon securities at a price below the amount payable at maturity. The difference between the purchase price and the amount paid at maturity represents interest on the zero coupon security. Investors must wait until maturity to receive interest and principal, which exposes investors to risks of payment default and volatility.

VARIABLE RATE DEMAND INSTRUMENTS

Variable rate demand instruments are securities that require the Issuer or a third party, such as a dealer or bank, to repurchase the security for its face value upon demand. Investors in these securities are subject to the risk that the dealer or bank may not repurchase the instrument. The securities also pay interest at a variable rate intended to cause the securities to trade at their face value. The funds treat demand instruments as short-term securities, because their variable interest rate adjusts in response to changes in market

APPENDIX A-5

Appendix A

More on Strategies and Risks

rates even though their stated maturity may extend beyond 13 months.

CREDIT ENHANCEMENT

Credit enhancement consists of an arrangement in which a company agrees to pay amounts due on a fixed-income security if the issuer defaults. In some cases the company providing credit enhancement makes all payments directly to the security holders and receives reimbursement from the issuer. Normally, the credit enhancer has greater financial resources and liquidity than the issuer. For this reason, the sub-adviser usually evaluates the credit risk of a fixed-income security based solely upon its credit enhancement.

INVESTING IN SMALL- OR MEDIUM-SIZED COMPANIES

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

INVESTING IN SMALL, UNSEASONED COMPANIES

Small, unseasoned companies are described as companies that have been in operation less than three years, including the operations of any predecessors. These securities might have limited liquidity and their prices may be very volatile.

INVESTING IN PRECIOUS METAL RELATED SECURITIES

Prices of precious metals and of precious metal related securities historically have been very volatile. The high volatility of precious metal prices may adversely affect the financial condition of companies involved with precious metals. The production and sale of precious metals by governments or central banks or other larger holders can be affected by various economic, financial, social and political factors, which may be unpredictable and may have a significant impact on the prices of precious metals. Other factors that may affect the prices of precious metals and securities related to them include changes in inflation, the outlook for inflation and changes in industrial and commercial demand for precious metals.

INVESTING IN MORTGAGE-RELATED SECURITIES

Mortgage-related securities in which the fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

INVESTING IN ASSET-BACKED SECURITIES

Some funds may purchase asset-backed securities. Asset-backed securities have many of the same characteristics and risks as the mortgage-related securities described above, except that asset-backed securities may be backed by non-real-estate loans, leases or receivables such as auto, credit card or home equity loans.

INVESTING IN REAL ESTATE SECURITIES

Real estate markets have been particularly affected by the financial crisis. Investments in the real estate industry are subject to risks associated with direct investment in real estate. These risks include:

-   declining real estate value

-   risks relating to general and local economic conditions

-   over-building

-   increased competition for assets in local and regional markets

-   increases in property taxes

-   increases in operating expenses or interest rates

-   change in neighborhood value or the appeal of properties to tenants

-   insufficient levels of occupancy

-   inadequate rents to cover operating expenses

The performance of securities issued by companies in the real estate industry also may be affected by management of insurance risks, adequacy of financing available in capital markets, management, changes in applicable laws and government regulations (including taxes) and social and economic trends.

APPENDIX A-6

Appendix A

More on Strategies and Risks

INVESTING IN REAL ESTATE INVESTMENT TRUSTS (“REITS”)

Real estate markets have been particularly affected by the financial crisis. Equity REITs can be affected by any changes in the value of the properties owned. A REIT’s performance depends on the types and locations of the properties it owns and on how well it manages those properties or loan financings. A decline in rental income could occur because of extended vacancies, increased competition from other properties, tenants’ failure to pay rent or poor management. A REIT’s performance also depends on the company’s ability to finance property purchases and renovations and manage its cash flows. Because REITs are typically invested in a limited number of projects or in a particular market segment, they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. Loss of status as a qualified REIT or changes in the treatment of REITs under the federal tax law, could adversely affect the value of a particular REIT or the market for REITs as a whole.

INVESTING IN OTHER INVESTMENT COMPANIES

To the extent that a fund, including an asset allocation fund, invests in other investment companies, including exchange-traded funds, it bears its pro rata share of these investment companies’ expenses, and is subject to the effects of the business and regulatory developments that affect these investment companies and the investment company industry generally.

INVESTING IN EXCHANGE-TRADED FUNDS (“ETFS”)

An investment in an ETF generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange-traded) that has the same investment objectives, strategies and policies. The price of an ETF can fluctuate up and down, and a fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs are subject to the following risks that do not apply to conventional funds: (i) the market price of an ETF’s shares may trade above or below their net asset value; (ii) an active trading market for an ETF’s shares may not develop or be maintained; or (iii) trading of an ETF’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.

INVESTING IN LOANS

Certain funds may invest in certain commercial loans, including loans generally known as “syndicated bank loans,” by acquiring participations or assignments in such loans. The lack of a liquid secondary market for such securities may have an adverse impact on the value of the securities and a fund’s ability to dispose of particular assignments or participations when necessary to meet redemptions of shares or to meet the fund’s liquidity needs. When purchasing a participation, a fund may be subject to the credit risks of both the borrower and the lender that is selling the participation. When purchasing a loan assignment, a fund acquires direct rights against the borrowers, but only to the extent of those held by the assigning lender. Investment in loans through a direct assignment from the financial institution’s interests with respect to a loan may involve additional risks to a fund. It is also unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive regulatory guidance, a fund relies on its sub-adviser’s research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the fund.

SWAPS AND SWAP-RELATED PRODUCTS

A fund’s sub-adviser may enter into swap transactions primarily to attempt to preserve a return or spread on a particular investment or portion of its portfolio. A fund also may enter into these transactions to attempt to protect against any increase in the price of securities the fund may consider buying at a later date.

-   COMMODITY SWAPS.  An investment in a commodity swap agreement may, for example, involve the exchange of floating-rate interest payments for the total return on a commodity index. In a total return commodity swap, a fund will receive the price appreciation of a commodity index, a portion of the index, or a single commodity in exchange for paying an agreed-upon fee. If the commodity swap is for one period, the fund may pay a fixed fee, established at the outset of the swap. However, if the term of the commodity swap is more than one period, with interim swap payments, the fund may pay an adjustable or floating fee. With a “floating” rate, the fee may be pegged to a base rate, such as the London Interbank Offered Rate, and is adjusted each period. Therefore, if interest rates increase over the term of the swap contract, the fund may be required to pay a higher fee at each swap reset date.

-   INTEREST RATE SWAPS.  Interest rate swaps involve the exchange by a fund with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments. The exchange commitments can involve payments to be made in the same currency or in different currencies. The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index exceeds a predetermined interest rate, to receive payments of interest on a contractually based principal amount from the party selling the interest rate cap. The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a predetermined interest rate, to receive payments of interest on a contractually based principal amount from the party selling the interest rate floor.

A fund, subject to its investment restrictions, enters into interest rate swaps, caps and floors on either an asset-based or liability-based basis, depending upon whether it is hedging its assets or its liabilities, and will usually enter into interest rate swaps on a net basis (i.e., the two payment streams are netted out, with a fund receiving or paying, as the case may be, only the net amount of the two payments). The net amount of the excess, if any, of a fund’s obligations over its entitlements with respect to each interest rate swap, will be calculated on a daily basis. An amount of cash or other liquid assets having an aggregate net asset value at least equal to the accrued excess will be segregated by its custodian. If a fund enters into an interest rate swap on other than a net basis, it will maintain a segregated account in the full

APPENDIX A-7

Appendix A

More on Strategies and Risks

amount accrued on a daily basis of its obligations with respect to the swap.

A fund will not enter into any interest rate swap, cap or floor transaction unless the unsecured senior debt or the claims-paying ability of the other party thereto is rated in one of the three highest rating categories of at least one nationally recognized statistical rating organization at the time of entering into such transaction. A fund’s sub-adviser will monitor the creditworthiness of all counterparties on an ongoing basis. If there is a default by the other party to such a transaction, the fund will have contractual remedies pursuant to the agreements related to the transaction.

The swap market has grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. Caps and floors are more recent innovations for which standardized documentation has not yet been developed and, accordingly, they are less liquid than swaps. To the extent a fund sells (i.e., writes) caps and floors, it will segregate cash or other liquid assets having an aggregate net asset value at least equal to the full amount, accrued on a daily basis, of its obligations with respect to any caps or floors.

There is no limit on the amount of interest rate swap transactions that may be entered into by a fund, unless so stated in its investment objectives. These transactions may in some instances involve the delivery of securities or other underlying assets by a fund or its counterparty to collateralize obligations under the swap. Under the documentation currently used in those markets, the risk of loss with respect to interest rate swaps is limited to the net amount of the interest payments that a fund is contractually obligated to make. If the other party to an interest rate swap that is not collateralized defaults, a fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. A fund may buy and sell (i.e., write) caps and floors without limitation, subject to the segregation requirement described above.

ILLIQUID AND RESTRICTED/144A SECURITIES

Certain funds may invest in illiquid securities (i.e., securities that are not readily marketable). In recent years, a large institutional market has developed for certain securities that are not registered under the Securities Act of 1933 (the “1933 Act”). Institutional investors generally will not seek to sell these instruments to the general public, but instead will often depend on an efficient institutional market in which such unregistered securities can readily be resold or on an issuer’s ability to honor a demand for repayment. Therefore, the fact that there are contractual or legal restrictions on resale to the general public or certain institutions is not dispositive of the liquidity of such investments. Rule 144A under the 1933 Act established a “safe harbor” from the registration requirements of the 1933 Act for resale of certain securities to qualified institutional buyers. Institutional markets for restricted securities that might develop as a result of Rule 144A could provide both readily ascertainable values for restricted securities and the ability to liquidate an investment in order to satisfy share redemption orders. An insufficient number of qualified institutional buyers interested in purchasing a Rule 144A-eligible security held by a fund could, however, adversely affect the marketability of such security and the fund might be unable to dispose of such security promptly or at reasonable prices.

INVESTING IN MASTER LIMITED PARTNERSHIPS

Holders of MLP units have limited control and voting rights, similar to those of a limited partner. An MLP could be taxed, contrary to its intention, as a corporation, resulting in decreased returns. MLPs may, for tax purposes, affect the character of the gain and loss realized by a fund and affect the holding period of a fund’s assets.

INVESTING IN SPECIAL SITUATIONS

Certain funds may invest in “special situations” from time to time. Special situations arise when, in the opinion of a fund manager, a company’s securities may be undervalued, then potentially increase considerably in price, due to:

-   a new product or process;

-   a management change;

-   a technological breakthrough;

-   an extraordinary corporate event;

-   a temporary imbalance in the supply of, and demand for, the securities of an Issuer

Investing in a special situation carries an additional risk of loss if the expected development does not happen or does not attract the expected attention. The impact of special situation investing to a fund will depend on the size of the fund’s investment in a situation.

TAX EFFICIENT MANAGEMENT

Certain sub-advisers strive to manage certain of the fund in a tax efficient manner. Each relevant fund seeks to minimize capital gains distributions through its investment strategy. To do so, sub-advisers generally seek to follow the following strategies:

(1)	Whenever the manager intends to make a sale, the manager will seek to always sell the highest cost lots; when the manager expects the sale will result in a capital gain, the manager looks for a capital loss that can be taken in another stock where the sale also makes economic sense.
(2)	When taxable dividends and interest accumulates, the manager looks for short term losses to take to offset the income. In either case, the manager tries to accomplish this tax efficiency without compromising the investment opportunity in the fund.

There is no guarantee a fund’s attempt to manage the portfolio in a tax-efficient manner will be successful.

PORTFOLIO TURNOVER

A fund may engage in a significant number of short-term transactions, which may lower fund performance. High turnover rate will not limit a manager’s ability to buy or sell securities for

APPENDIX A-8

Appendix A

More on Strategies and Risks

these funds. Increased turnover (100% or more) results in higher brokerage costs or mark-up charges for a fund. The funds ultimately pass these charges on to shareholders. Short-term trading may also result in short-term capital gains, which are taxed as ordinary income to shareholders.

COUNTRY, SECTOR OR INDUSTRY FOCUS

Unless otherwise stated in a fund’s prospectus or SAI, as a fundamental policy governing concentration, no fund will invest more than 25% of its total assets in any one particular industry, other than U.S. government securities and its agencies. In addition, to the extent a fund invests a significant portion of its assets in one or more countries, sectors or industries at any time, the fund will face a greater risk of loss due to factors affecting the country, sector or industry than if the fund always maintained wide diversity among the countries, sectors and industries in which it invests. For example, technology companies involve risks due to factors such as the rapid pace of product change, technological developments and new competition. Their stocks historically have been volatile in price, especially over the short term, often without regard to the merits of individual companies. Banks and financial institutions are subject to potentially restrictive governmental controls and regulations that may limit or adversely affect profitability and share price. In addition, securities in that sector may be very sensitive to interest rate changes throughout the world.

SECURITIES LENDING

Certain funds may lend securities to other financial institutions that provide cash or other securities as collateral. This involves the risk that the borrower may fail to return the securities in a timely manner or at all. As a result, a fund may lose money and there may be a delay in recovering the loaned securities. A fund could also lose money if it does not recover the securities and/or the value of the collateral falls, including the value of investments made with cash collateral. These events could trigger adverse tax consequences to a fund.

IPOS

Initial public offerings (“IPOs”) are subject to specific risks which include, among others:

-   high volatility;

-   no track record for consideration;

-   securities may be illiquid;

-   earnings are less predictable.

TEMPORARY DEFENSIVE STRATEGIES

For temporary defensive purposes, a fund may, at times, choose to hold some or all of its assets in cash, or to invest that cash in a variety of debt securities. This may be done as a defensive measure at times when desirable risk/reward characteristics are not available in stocks or to earn income from otherwise uninvested cash. When a fund increases its cash or debt investment position, its income may increase while its ability to participate in stock market advances or declines decrease. Furthermore, when a fund assumes a temporary defensive position it may not be able to achieve its investment objective.

INTERNET OR INTRANET SECTOR RISK

Certain funds may invest primarily in companies engaged in Internet and Intranet related activities. The value of such companies is particularly sensitive to rapidly changing technology, extensive government regulation and relatively high risks of obsolescence caused by scientific and technological advances. The value of the fund’s shares may fluctuate more than shares of a fund investing in a broader range of industries.

SHORT SALES

A short sale may be effected by selling a security that the fund does not own. In order to deliver the security to the purchaser, the fund borrows the security, typically from a broker/dealer or an institutional investor. The fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the fund would incur a loss; conversely, if the price declines, the fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the fund held only long positions. The fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.

A short sale may also be effected “against the box” if, at all times when the short position is open, the fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the fund would forego the potential realization of the increased value of the shares sold short.

INVESTMENT STYLE RISK

Different investment styles tend to shift in and out of favor depending upon market and economic conditions as well as investor sentiment. A fund may outperform or underperform other funds that employ a different investment style. A fund may also employ a combination of styles that impact its risk characteristics. Examples of different investment styles include growth and value investing. Growth stocks may be more volatile than other stocks because they are more sensitive to investor perceptions of the issuing company’s growth of earnings potential. Also, since growth companies usually invest a high portion of earnings in their business, growth stocks may lack the dividends of value stocks that can cushion stock prices in a falling market. Growth oriented funds will typically underperform when value investing is in favor. The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced.

APPENDIX A-9

Appendix A

More on Strategies and Risks

ISSUER-SPECIFIC CHANGES

The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. Lower-quality debt securities (those of less than investment-grade quality) and certain other types of securities can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, or economic developments and can be difficult to resell.

INVESTMENT STRATEGIES

A fund is permitted to use other securities and investment strategies in pursuit of its investment objective, subject to limits established by the fund’s Board of Trustees. No fund is under any obligation to use any of the techniques or strategies at any given time or under any particular economic condition. Certain instruments and investment strategies may expose the funds to other risks and considerations, which are discussed in the funds’ SAI.

GEOGRAPHIC CONCENTRATION

Because a fund may invest a relatively large percentage of its assets in issuers located in a single country, a small number of countries, or a particular geographic region, a fund’s performance could be closely tied to the market, currency, economic, political, or regulatory conditions and developments in those countries or that region, and could be more volatile than the performance of more geographically-diversified funds.

INFLATION

A fund is subject to the risk that the value of assets or income from the fund’s investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the value of the fund’s assets can decline, as can the value of the fund’s distributions. This risk is more pronounced for funds that invest a substantial portion of their assets in fixed-income securities with longer maturities.

APPENDIX A-10

Appendix B

Bond Ratings

BOND RATINGS

APPENDIX B

BRIEF EXPLANATION OF RATING CATEGORIES

	Bond Rating	Explanation
Standard & Poor’s Corporation	AAA	Highest rating; extremely strong capacity to pay principal and interest.
	AA	High quality; very strong capacity to pay principal and interest.
	A	Strong capacity to pay principal and interest; somewhat more susceptible to the adverse effects of changing circumstances and economic conditions.
	BBB	Adequate capacity to pay principal and interest; normally exhibit adequate protection parameters, but adverse economic conditions or changing circumstances more likely to lead to a weakened capacity to pay principal and interest than for higher rated bonds.
	BB, B, and CCC, CC, C	Predominantly speculative with respect to the issuer’s capacity to meet required interest and principal payments. BB — lowest degree of speculation; C — the highest degree of speculation. Quality and protective characteristics outweighed by large uncertainties or major risk exposure to adverse conditions
	D	In default.

Plus (+) or Minus (–) — The ratings from “AA” to “BBB” may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.

Unrated — Indicates that no public rating has been requested, that there is insufficient information on which to base a rating, or that S&P does not rate a particular type of obligation as a matter of policy.

Moody’s Investors Service, Inc.	Aaa	Highest quality, smallest degree of investment risk.
	Aa	High quality; together with Aaa bonds, they compose the high-grade bond group.
	A	Upper-medium grade obligations; many favorable investment attributes.
	Baa	Medium-grade obligations; neither highly protected nor poorly secured. Interest and principal appear adequate for the present but certain protective elements may be lacking or may be unreliable over any great length of time.
	Ba	More uncertain, with speculative elements. Protection of interest and principal payments not well safeguarded during good and bad times.
	B	Lack characteristics of desirable investment; potentially low assurance of timely interest and principal payments or maintenance of other contract terms over time.
	Caa	Poor standing, may be in default; elements of danger with respect to principal or interest payments.
	Ca	Speculative in a high degree; could be in default or have other marked short-comings.
	C	Lowest-rated; extremely poor prospects of ever attaining investment standing.

Note: Moody’s appends numerical modifiers “1”, “2” and “3” to each generic rating classification from “Aa” through “Caa.” The modifier “1” indicates that the obligation ranks in the higher end of its generic rating category; the modifier “2” indicates a mid-range ranking; and the modifier “3” indicates a ranking in the lower end of that generic rating category.

Unrated — Where no rating has been assigned or where a rating has been suspended or withdrawn, it may be for reasons unrelated to the quality of the issue.

Should no rating be assigned, the reason may be one of the following:

1.	An application for rating was not received or accepted.
2.	The issue or issuer belongs to a group of securities or companies that are not rated as a matter of policy.
3.	There is a lack of essential data pertaining to the issue or issuer.
4.	The issue was privately placed, in which case the rating is not published in Moody’s publications.

Suspension or withdrawal may occur if new and material circumstances arise, the effects of which preclude satisfactory analysis; if there is no longer available reasonable up-to-date data to permit a judgment to be formed; if a bond is called for redemption; or for other reasons.

APPENDIX B-1

Appendix B

Bond Ratings

Fitch, Inc.	AAA	Highest credit quality. “AAA” ratings denote the lowest expectation of credit risk. They are assigned only in case of exceptionally strong capacity for timely payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.
	AA	Very high credit quality. “AA” ratings denote a very low expectation of credit risk. They indicate very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.
	A	High credit quality. “A” ratings denote a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings.
	BBB	Good credit quality. “BBB” ratings indicate that there is currently a low expectation of credit risk. The capacity for timely payment of financial commitments is considered adequate, but adverse changes in circumstances and in economic conditions are more likely to impair this capacity. This is the lowest investment-grade category.
	BB	Speculative. “BB” ratings indicate that there is a possibility of credit risk developing, particularly as the result of adverse economic change over time; however, business or financial alternatives may be available to allow financial commitments to be met. Securities rated in this category are not investment grade.
	B	Highly speculative. “B” ratings indicate that significant credit risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is contingent upon a sustained, favorable business and economic environment.
	CCC, CC, C	High default risk. “CCC” ratings indicate that default is a real possibility. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business or economic developments. A “CC” rating indicates that default of some kind appears probable. “C” ratings signal imminent default.
	DDD,DD,D	Default. The ratings of obligations in this category are based on their prospects for achieving partial or full recovery in a reorganization or liquidation of the obligor. While expected recovery values are highly speculative and cannot be estimated with any precision, the following serve as general guidelines. “DDD” obligations have the highest potential for recovery, around 90%–100% of outstanding amounts and accrued interest. “DD” indicates potential recoveries in the range of 50%–90%, and “D” the lowest recovery potential, i.e., below 50%. Entities rated in this category have defaulted on some or all of their obligations. Entities rated “DDD” have the highest prospect for resumption of performance or continued operation with or without a formal reorganization process. Entities rated “DD” and “D” are generally undergoing a formal reorganization or liquidation process; those rated “DD” are likely to satisfy a higher portion of their outstanding obligations, while entities rated “D” have a poor prospect for repaying all obligations.

Plus (+) or Minus (–) — may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the AAA category, to categories below CCC, or to short-term ratings.

Unrated — Indicates that Fitch does not rate the issuer or issue in question.

Short-Term Credit Ratings — A short-term rating has a time horizon of less than 12 months for most obligations, or up to three years for U.S. public finance securities, and thus places greater emphasis on the liquidity necessary to meet financial commitments in a timely manner.

Withdrawal may occur if the information available is inadequate for rating purposes, or when an obligation matures, is called, or refinanced.

Ratings are placed on Rating Watch to notify investors that there is a reasonable probability of a rating change and the likely direction of such change. These are designated as “Positive,” indicating a potential upgrade, “Negative,” for a potential downgrade, or “Evolving,” if ratings may be raised, lowered or maintained. Rating Watch is typically resolved over a relatively short period.

A Rating Outlook indicates the direction a rating is likely to move over a one to two year period. Outlooks may be positive, stable, or negative. A positive or negative Rating Outlook does not imply a rating change is inevitable. Similarly, companies whose outlooks are “stable” could be downgraded before an outlook moves to positive or negative if circumstances warrant such an action. Occasionally, Fitch may be unable to identify the fundamental trend. In these cases, the Rating Outlook may be described as Evolving.

The above is a brief summary of the ratings used by Moody’s, Standard & Poor’s and Fitch. This information does not purport to be a complete description of the ratings and is based on information from their websites. The ratings represent their opinions as to the quality of various debt obligations. It should be emphasized, however, that ratings are not absolute standards of quality. As described by the rating agencies, ratings are generally given to securities at the time of issuances. While the rating agencies may from time to time revise such ratings, they undertake no obligation to do so.

APPENDIX B-2

NOTICE OF PRIVACY POLICY

At Transamerica Funds, protecting your privacy is very important to us. We want you to understand what information we collect and how we use it. We collect and use “nonpublic personal information” in connection with providing our customers with a broad range of financial products and services as effectively and conveniently as possible. We treat nonpublic personal information in accordance with our Privacy Policy.

What Information We Collect and From Whom We Collect It

We may collect nonpublic personal information about you from the following sources:

•  Information we receive from you on applications or other forms, such as your name, address and account number;

•  Information about your transactions with us, our affiliates, or others, such as your account balance and purchase/redemption history; and

•  Information we receive from non-affiliated third parties, including consumer reporting agencies.

What Information We Disclose and To Whom We Disclose It

We do not disclose any nonpublic personal information about current or former customers to anyone without their express consent, except as permitted by law. We may disclose the nonpublic personal information we collect, as described above, to persons or companies that perform services on our behalf and to other financial institutions with which we have joint marketing agreements. We will require these companies to protect the confidentiality of your nonpublic personal information and to use it only to perform the services for which we have hired them.

Our Security Procedures

We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted by law to assist in providing products or services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information and to safeguard the disposal of certain consumer information.

If you have any questions about our Privacy Policy, please call 1-888-233-4339 on any business day between 8 a.m. and 7 p.m. Eastern Time.

Note:  This Privacy Policy applies only to customers that have a direct relationship with us or our affiliates. If you own shares of a Transamerica Fund in the name of a third party such as a bank or broker/dealer, its privacy policy may apply to you instead of ours.

THIS PAGE IS NOT PART OF THE PROSPECTUS

TRANSAMERICA FUNDS

Supplement dated August 14, 2009 to the Prospectus dated March 1, 2009
and the Statement of Additional Information dated July 1, 2009, each as previously supplemented

* * *

Transamerica Legg Mason Partners All Cap

The following information supplements information concerning Transamerica Legg Mason Partners All Cap in the Prospectus and Statement of Additional Information:

The Board of Trustees of Transamerica Legg Mason Partners All Cap (the “Fund”) has approved changes to the Fund’s investment objective, strategies and principal risks, as well as the Fund’s name, effective on or about November 6, 2009. These changes do not require shareholder approval, and are described below. The Board has also approved a new investment sub-advisory agreement with Transamerica Investment Management, LLC (“TIM”) as the new sub-adviser for the Fund. The proposed change in sub-adviser requires shareholder approval, and Fund shareholders will receive proxy materials and will be asked to vote.

In addition, the Board has approved a reorganization pursuant to which the Fund would acquire all of the assets of, and assume all of the liabilities of, Transamerica Premier Focus Fund, a series of Transamerica Investors, Inc., in exchange for shares of the Fund. The reorganization is subject to the satisfaction of certain conditions. If the closing conditions are satisfied, the reorganization is expected to occur during the fourth quarter of 2009.

In connection with the proposed change in sub-adviser for the Fund, the Fund will change its name from Transamerica Legg Mason Partners All Cap to Transamerica Focus, and there will be changes in the investment objective, strategies and policies of the Fund as described below. In addition to the principal risks to which the Fund is currently subject, the Fund’s revised investment objective and strategies may also subject the Fund to Short Sales risk, Fixed-Income Securities risk and Focused Investing risk, as described below. The Fund will no longer consider Preferred Stock risk or Convertible Securities risk to be principal risks. The changes to the Fund’s investment objective, strategies, policies and principal risks will only take place if shareholders approve the proposed change in sub-adviser.

The investment adviser of the Fund, Transamerica Asset Management, Inc., as well as the current investment advisory fee structure, will remain the same. The sub-classification of the Fund as a non-diversified company and its fundamental investment restrictions will also remain the same.

Assuming the shareholders approve the proposal to approve TIM as the new sub-adviser for the Fund, the following information will then apply to the Fund.

     OBJECTIVE:

     The investment objective of Transamerica Focus is to seek to maximize long-term growth.

     PRINCIPAL STRATEGIES AND POLICIES:

     The Fund will seek to achieve its objective by investing primarily in domestic equity securities that, in TIM’s opinion, are trading at a material discount to intrinsic value. TIM assesses intrinsic value primarily through discounted cash flow analysis, though acquisition and comparable company valuation analyses may be used to a lesser extent. The Fund will generally invest in domestic equity securities of any size. The Fund may also invest up to 10% of its assets in short sale positions.

     TIM will use a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual companies. The portfolio will be constructed one company at a time. Each company will pass through a research process and stand on its own merits as a viable investment in TIM’s opinion.

     TIM’s equity management team selects U.S. companies showing:

• strong potential for shareholder value creation

• high barriers to competition

• solid free cash flow generating ability

• excellent capital allocation discipline

• experienced management aligned with shareholder interests

     TIM seeks out dominant business franchises where the long-term, value-creating potential has not fully been recognized by the market.

     Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options and swaps, and also in foreign securities.

     In the event TIM is unable to identify sufficient investments that meet the Fund’s criteria, the Fund may maintain a balance in cash and cash equivalents that may range up to 40% of total assets.

     The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

ADDITIONAL PRINCIPAL RISKS:

n  Short Sales

     A short sale may be effected by selling a security that the fund does not own. In order to deliver the security to the purchaser, the fund borrows the security, typically from a broker/dealer or an institutional investor. The fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the fund would incur a loss; conversely, if the price declines, the fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the fund held only long positions. The fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.

     A short sale may also be effected “against the box” if, at all times when the short position is open, the fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the fund would forego the potential realization of the increased value of the shares sold short.

n  Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

- market risk: fluctuations in market value

- interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

- prepayment or call risk: declining interest rates may cause issuers of securities held by the fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the fund to reinvest in lower yielding securities

- extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

- default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The fund may incur expenses to protect the fund’s interest in securities experiencing these events. If the fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the fund’s sub-adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the fund, or if an issuer of such a security has difficulty meeting its obligations, the fund may become the holder of a restructured security or of underlying assets. In that case, the fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

n  Focused Investing

To the extent the fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

* * *

Investors Should Retain this Supplement for Future Reference

2

TRANSAMERICA ASSET MANAGEMENT GROUP
Transamerica Funds
Transamerica Series Trust
Transamerica Investors, Inc.
Transamerica Partners Funds Group
Transamerica Partners Funds Group II (each, a “fund”)

Supplement dated August 4, 2009 to the Prospectuses and Statements of Additional Information

     The following supplements the Prospectus and Statement of Additional Information as applicable for each fund listed below on Schedules I, II and III:

     Rationalization. The fund’s Board has approved a number of initiatives designed to achieve a more cohesive, focused and streamlined fund complex, and has authorized seeking shareholder approval for those initiatives where shareholder approval is required.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed as a “Target Fund” on Schedule I to this Supplement:

     Reorganization. The fund’s Board has approved a reorganization pursuant to which the fund’s assets would be acquired, and its liabilities would be assumed, by the fund (the “Destination Fund”) listed opposite the fund on Schedule I in exchange for shares of the Destination Fund. The fund would then be liquidated, and shares of the Destination Fund would be distributed to fund shareholders.

     Under the reorganization, fund shareholders would receive shares of the Destination Fund with the same aggregate net asset value as their shares of the fund. It is anticipated that no gain or loss for Federal income tax purposes would be recognized by fund shareholders as a result of the reorganization.

     The reorganization is subject to the satisfaction of certain conditions, including approval by fund shareholders (if so indicated on Schedule I). Materials describing the reorganization are expected to be mailed later in 2009 (early 2010 for Transamerica Series Trust funds). If the closing conditions are satisfied, the reorganization is expected to occur during the fourth quarter of 2009 (second quarter of 2010 for Transamerica Series Trust funds). Prior to the reorganization, shareholders can continue to purchase, redeem and exchange shares subject to the limitations described in the fund’s Prospectus.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed on Schedule II to this Supplement:

     Liquidation. The fund’s Board has approved the termination and liquidation of the fund. Effective September 1, 2009, the fund will no longer be accepting purchase orders for its shares. The fund will be liquidated on or about September 30, 2009.

     In order to achieve an orderly liquidation, a portion of the fund’s assets may be converted into cash and/or money market securities prior to September 30, 2009. Should a fund convert its assets to cash and/or money market securities, the fund would no longer be pursuing its stated investment objective.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed on Schedule III to this Supplement:

     New subadviser. The fund’s Board has approved a new subadviser for the fund, as indicated for the fund on Schedule III. In each case the new subadviser is an affiliate of Transamerica. Under the Investment Company Act of 1940, shareholder approval of the agreement with the new subadviser must be obtained, and the Board has authorized seeking such approval. Proxy materials describing the new subadviser are expected to be mailed later in 2009. If shareholder approval is obtained, the new agreement could take effect in the fourth quarter of 2009.

* * *

	Date of Prospectus
Fund	and Statement of Additional Information
Transamerica Funds	Prospectus — March 1, 2009
Transamerica American Century Large Company Value	Statement of Additional Information — July 1, 2009
Transamerica Balanced
Transamerica Convertible Securities
Transamerica Diversified Equity
Transamerica Equity
Transamerica Evergreen Health Care
Transamerica Evergreen International Small Cap
Transamerica Flexible Income
Transamerica Growth Opportunities
Transamerica High Yield Bond
Transamerica Legg Mason Partners All Cap
Transamerica Marsico Growth
Transamerica Marsico International Growth
Transamerica Money Market
Transamerica Science & Technology
Transamerica Templeton Global
Transamerica Value Balanced
Transamerica Series Trust	May 1, 2009
Transamerica American Century Large Company Value VP
Transamerica Balanced VP
Transamerica BlackRock Large Cap Value VP
Transamerica Diversified Equity VP
Transamerica Jennison Growth VP
Transamerica Legg Mason Partners All Cap VP
Transamerica Marsico Growth VP
Transamerica Munder Net 50 VP
Transamerica Science & Technology VP
Transamerica T. Rowe Price Equity Income VP
Transamerica T. Rowe Price Growth Stock VP
Transamerica Templeton Global VP
Transamerica Value Balanced VP
Transamerica Investors, Inc.	May 1, 2009
Transamerica Premier Balanced Fund
Transamerica Premier Cash Reserve Fund
Transamerica Premier Diversified Equity Fund
Transamerica Premier Equity Fund
Transamerica Premier Focus Fund
Transamerica Premier Growth Opportunities Fund
Transamerica Premier High Yield Bond Fund
Transamerica Premier Institutional Bond Fund
Transamerica Premier Institutional Diversified Equity Fund
Transamerica Premier Institutional Equity Fund
Transamerica Premier Institutional Small Cap Value Fund

	Date of Prospectus
Fund	and Statement of Additional Information
Transamerica Partners Funds Group	May 1, 2009
Transamerica Partners Core Bond
Transamerica Partners Growth
Transamerica Partners Large Growth
Transamerica Partners Large Value
Transamerica Partners Total Return Bond
Transamerica Partners Value
Transamerica Partners Funds Group II	May 1, 2009
Transamerica Partners Institutional Core Bond
Transamerica Partners Institutional Growth
Transamerica Partners Institutional Large Growth
Transamerica Partners Institutional Large Value
Transamerica Partners Institutional Total Return Bond
Transamerica Partners Institutional Value

Schedule I

Target Fund(s)	Destination Fund
Transamerica Premier Balanced Fund	Transamerica Balanced
Transamerica Value Balanced
Transamerica Premier Cash Reserve Fund*	Transamerica Money Market
Transamerica Premier Diversified Equity Fund	Transamerica Diversified Equity
Transamerica Premier Institutional Diversified Equity Fund
Transamerica Science & Technology
Transamerica Templeton Global
Transamerica Premier Equity Fund	Transamerica Equity
Transamerica Premier Institutional Equity Fund
Transamerica Premier Focus Fund	Transamerica Legg Mason Partners All Cap
Transamerica Premier Growth Opportunities Fund	Transamerica Growth Opportunities
Transamerica Premier High Yield Bond Fund*	Transamerica High Yield Bond
Transamerica Convertible Securities	Transamerica Flexible Income
Transamerica Partners Value	Transamerica Partners Large Value
Transamerica Partners Growth	Transamerica Partners Large Growth
Transamerica Partners Total Return Bond	Transamerica Partners Core Bond
Transamerica Partners Institutional Value	Transamerica Partners Institutional Large Value
Transamerica Partners Institutional Growth	Transamerica Partners Institutional Large Growth
Transamerica Partners Total Institutional Return Bond	Transamerica Partners Institutional Core Bond

* Requires shareholder approval.

Target Fund(s)	Destination Fund
Transamerica Templeton Global VP	Transamerica Diversified Equity VP
Transamerica Science & Technology VP
Transamerica Munder Net 50 VP*
Transamerica Value Balanced VP	Transamerica Balanced VP
Transamerica American Century Large Company Value VP*	Transamerica BlackRock Large Cap Value VP
Transamerica T. Rowe Price Equity Income VP*
Transamerica Marsico Growth VP	Transamerica Jennison Growth VP
Transamerica T. Rowe Price Growth Stock VP

* Requires shareholder approval.

Schedule II

Fund

Transamerica American Century Large Company Value

Transamerica Evergreen Health Care

Transamerica Evergreen International Small Cap

Transamerica Marsico Growth

Transamerica Marsico International Growth

Transamerica Premier Institutional Bond Fund

Transamerica Premier Institutional Small Cap Value Fund

Schedule III

Fund	Proposed New Subadviser
Transamerica Legg Mason Partners All Cap	Transamerica Investment Management, LLC
Transamerica Legg Mason Partners All Cap VP	Transamerica Investment Management, LLC

Investors Should Retain this Supplement for Future Reference

TRANSAMERICA FUNDS

Supplement dated July 16, 2009 to the Statement of Additional Information dated July 1, 2009

* * *

Transamerica MFS International Equity

Effective August 1, 2009, the information under the section entitled “Investment Advisory and Other Services — Investment Adviser Compensation” relating to Transamerica MFS International Equity is deleted and replaced with the following:

0.90% of the first $250 million
0.875% over $250 million up to $500 million
0.85% over $500 million up to $1 billion
0.80% in excess of $1 billion

Effective August 1, 2009, the information under the section entitled “Investment Advisory and Other Services — Sub-Advisers” relating to Transamerica MFS International Equity is deleted and replaced with the following:

0.45% of the first $250 million
0.425% over $250 million up to $500 million
0.40% over $500 million up to $1 billion
0.375% in excess of $1 billion*

* The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with the same named fund managed by the sub-adviser for Transamerica Series Trust.

* * *

Transamerica Value Balanced

The following information supplements and replaces certain information in “Appendix B — Portfolio Managers” relating to Transamerica Value Balanced:

Transamerica Value Balanced

	Registered Investment		Other Pooled Investment		Other Accounts
	Companies		Vehicles
		Assets		Assets		Assets
Portfolio Manager	Number	Managed	Number	Managed	Number	Managed
Greg D. Haendel (lead-fixed-income)	10	$2.17 billion	0	$0	12	$650.9 million
John J. Huber (lead-equity)	3	$228.2 million	1	$54.78 million	1	$88.98 million
Derek S. Brown (co-fixed-income)	1	$791.5 million	0	$0	15	$1.56 billion
Scott L. Dinsdale (co-equity)	0	$0	0	$0	0	$0
Kirk R. Feldhus (co-equity)	0	$0	1	$10.92 million	0	$0
Brian W. Westhoff (co-equity)	5	$301.2 million	0	$0	1	$31.34 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Greg D. Haendel (lead-fixed-income)	0	$0	0	$0	0	$0
John J. Huber (lead-equity)	0	$0	0	$0	0	$0
Derek S. Brown (co-fixed-income)	0	$0	0	$0	0	$0
Scott L. Dinsdale (co-equity)	0	$0	0	$0	0	$0
Kirk R. Feldhus (co-equity)	0	$0	0	$0	0	$0
Brian W. Westhoff (co-equity)	0	$0	0	$0	0	$0

* * *

Investors Should Retain this Supplement for Future Reference

TRANSAMERICA FUNDS

TRANSAMERICA ALLIANCEBERNSTEIN INTERNATIONAL VALUE	TRANSAMERICA MARSICO GROWTH
TRANSAMERICA AMERICAN CENTURY LARGE COMPANY VALUE	TRANSAMERICA MARSICO INTERNATIONAL GROWTH
TRANSAMERICA ASSET ALLOCATION — CONSERVATIVE PORTFOLIO	TRANSAMERICA MFS INTERNATIONAL EQUITY
TRANSAMERICA ASSET ALLOCATION — GROWTH PORTFOLIO	TRANSAMERICA MONEY MARKET
TRANSAMERICA ASSET ALLOCATION — MODERATE PORTFOLIO	TRANSAMERICA MULTI-MANAGER ALTERNATIVE STRATEGIES PORTFOLIO
TRANSAMERICA ASSET ALLOCATION — MODERATE GROWTH PORTFOLIO	TRANSAMERICA MULTI-MANAGER INTERNATIONAL PORTFOLIO
TRANSAMERICA BALANCED	TRANSAMERICA NEUBERGER BERMAN INTERNATIONAL
TRANSAMERICA BLACKROCK GLOBAL ALLOCATION	TRANSAMERICA OPPENHEIMER DEVELOPING MARKETS
TRANSAMERICA BLACKROCK LARGE CAP VALUE	TRANSAMERICA OPPENHEIMER SMALL- & MID-CAP VALUE
TRANSAMERICA BLACKROCK NATURAL RESOURCES	TRANSAMERICA PIMCO REAL RETURN TIPS
TRANSAMERICA BNY MELLON MARKET NEUTRAL STRATEGY	TRANSAMERICA PIMCO TOTAL RETURN
TRANSAMERICA CLARION GLOBAL REAL ESTATE SECURITIES	TRANSAMERICA SCHRODERS INTERNATIONAL SMALL CAP
TRANSAMERICA CONVERTIBLE SECURITIES	TRANSAMERICA SCIENCE & TECHNOLOGY
TRANSAMERICA EQUITY	TRANSAMERICA SHORT-TERM BOND
TRANSAMERICA EVERGREEN HEALTH CARE	TRANSAMERICA SMALL/MID CAP VALUE
TRANSAMERICA EVERGREEN INTERNATIONAL SMALL CAP	TRANSAMERICA TEMPLETON GLOBAL
TRANSAMERICA FEDERATED MARKET OPPORTUNITY	TRANSAMERICA THIRD AVENUE VALUE
TRANSAMERICA FLEXIBLE INCOME	TRANSAMERICA THORNBURG INTERNATIONAL VALUE
TRANSAMERICA GROWTH OPPORTUNITIES	TRANSAMERICA UBS DYNAMIC ALPHA
TRANSAMERICA HIGH YIELD BOND	TRANSAMERICA UBS LARGE CAP VALUE
TRANSAMERICA JENNISON GROWTH	TRANSAMERICA VALUE BALANCED
TRANSAMERICA JPMORGAN CORE BOND	TRANSAMERICA VAN KAMPEN EMERGING MARKETS DEBT
TRANSAMERICA JPMORGAN INTERNATIONAL BOND	TRANSAMERICA VAN KAMPEN MID-CAP GROWTH
TRANSAMERICA JPMORGAN MID CAP VALUE	TRANSAMERICA VAN KAMPEN SMALL COMPANY GROWTH
TRANSAMERICA LEGG MASON PARTNERS ALL CAP	TRANSAMERICA WMC EMERGING MARKETS
TRANSAMERICA LOOMIS SAYLES BOND

STATEMENT OF ADDITIONAL INFORMATION

July 1, 2009

TRANSAMERICA FUNDS
570 Carillon Parkway
St. Petersburg, Florida 33716
Customer Service (888) 233-4339 (toll free)

The funds listed above are series of Transamerica Funds (“Transamerica Funds” or the “Trust”), an open-end management investment company that is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). All funds, other than Transamerica BlackRock Natural Resources, Transamerica Clarion Global Real Estate Securities, Transamerica Evergreen Health Care, Transamerica JPMorgan International Bond, Transamerica Legg Mason Partners All Cap, Transamerica PIMCO Real Return TIPS, Transamerica Science & Technology, Transamerica Third Avenue Value, Transamerica UBS Dynamic Alpha and Transamerica Van Kampen Emerging Markets Debt, are diversified.

This Statement of Additional Information (“SAI”) is not a prospectus, and should be read in conjunction with, as applicable, the Transamerica JPMorgan Core Bond Class I prospectus dated July 1, 2009 and the prospectuses dated March 1, 2009 for the remainder of the funds, as they may be further supplemented or revised from time to time. This SAI may be obtained free of charge by writing or calling Transamerica Funds at the above address or telephone number, and is incorporated by reference into the prospectuses. This SAI sets forth information which may be of interest to shareholders, but which is not necessarily included in the funds’ prospectuses. The Transamerica Annual Report to shareholders, including the financial statements therein, is incorporated by reference into this SAI, and may be obtained free of charge by writing or calling Transamerica at the above address or telephone number.

INVESTMENT OBJECTIVES	2
INVESTMENT RESTRICTIONS, POLICIES AND PRACTICES	2
OTHER POLICIES AND PRACTICES OF THE FUNDS	5
OPTIONS, FUTURES AND OTHER DERIVATIVE INSTRUMENTS	6
U.S. GOVERNMENT SECURITIES	12
FOREIGN INVESTMENTS	13
SHORT SALES	16
OTHER INVESTMENT COMPANIES	16
WHEN-ISSUED, DELAYED SETTLEMENT AND FORWARD DELIVERY SECURITIES	17
ZERO-COUPON, PAY-IN-KIND AND STEP-COUPON SECURITIES	17
DOLLAR ROLLS	17
INVESTMENTS IN THE REAL ESTATE INDUSTRY AND REAL ESTATE INVESTMENT TRUSTS (“REITS”)	18
MORTGAGE-RELATED SECURITIES	18
ASSET-BACKED SECURITIES	20
INCOME-PRODUCING SECURITIES	21
HIGH-YIELD/HIGH-RISK BONDS	22
LENDING OF FUND SECURITIES	23
ILLIQUID AND RESTRICTED/144A SECURITIES	23
MUNICIPAL OBLIGATIONS	24
LOANS	26
COMMON STOCKS	27
EQUITY EQUIVALENTS	27
EVENT-LINKED BONDS	28
COLLATERALIZED DEBT OBLIGATIONS	28
REPURCHASE AGREEMENTS	28
REVERSE REPURCHASE AGREEMENTS	29
PASS-THROUGH SECURITIES	29
WARRANTS AND RIGHTS	29
COMMODITIES AND NATURAL RESOURCES	29
TEMPORARY INVESTMENTS	30
CERTAIN OTHER SECURITIES IN WHICH THE FUNDS MAY INVEST	30
PORTFOLIO TURNOVER RATE	31
DISCLOSURE OF PORTFOLIO HOLDINGS	31
INVESTMENT ADVISORY AND OTHER SERVICES	32
SUB-ADVISERS	39
DISTRIBUTOR	46
ADMINISTRATIVE SERVICES	48
CUSTODIAN, TRANSFER AGENT AND OTHER AFFILIATES	50
FUND TRANSACTIONS AND BROKERAGE	51
DIRECTED BROKERAGE	52
BOARD MEMBERS AND OFFICERS	56
SHAREHOLDER COMMUNICATION PROCEDURES WITH BOARD OF TRUSTEES	76
DEALER REALLOWANCES	77
DISTRIBUTION PLANS	78
DISTRIBUTION FEES	80
NET ASSET VALUE DETERMINATION	83
DIVIDENDS AND OTHER DISTRIBUTIONS	84
SHAREHOLDER ACCOUNTS	85
PURCHASE OF SHARES	85
RETIREMENT PLANS	86
REDEMPTION OF SHARES	86
TAXES	87
PRINCIPAL SHAREHOLDERS	92
MISCELLANEOUS	112
FINANCIAL STATEMENTS	114
APPENDIX A	A-1
APPENDIX B	B-1

1

INVESTMENT OBJECTIVES

The prospectuses discuss the investment objective of each of the funds and the policies each fund employs to achieve its objective. The following discussion of Investment Restrictions, Policies and Practices supplements that set forth in the prospectuses.

There can be no assurance that a fund will, in fact, achieve its objective. A fund’s investment objective may be changed by the Board of Trustees without shareholder approval. A change in the investment objective of a fund may result in the fund having an investment objective different from that which the shareholder deemed appropriate at the time of investment.

INVESTMENT RESTRICTIONS, POLICIES AND PRACTICES

FUNDAMENTAL INVESTMENT POLICIES

As indicated in each prospectus, each fund is subject to certain fundamental policies which as such may not be changed without shareholder approval. Shareholder approval would be the approval by the lesser of (i) more than 50% of the outstanding voting securities of a fund, or (ii) 67% or more of the voting securities present at a meeting if the holders of more than 50% of the outstanding voting securities of a fund are present or represented by proxy. Unless expressly designated as fundamental, all policies of each fund may be changed by Transamerica Funds’ Board of Trustees without shareholder approval. Each fund has adopted, as applicable, the following fundamental policies:

1. Diversification

Each fund shall be a “diversified company” as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (except Transamerica BlackRock Natural Resources, Transamerica Clarion Global Real Estate Securities, Transamerica Evergreen Health Care, Transamerica JPMorgan International Bond, Transamerica Legg Mason Partners All Cap, Transamerica PIMCO Real Return TIPS, Transamerica Third Avenue Value, Transamerica Science & Technology, Transamerica UBS Dynamic Alpha and Transamerica Van Kampen Emerging Markets Debt), and as interpreted or modified by regulatory authority having jurisdiction, from time to time. Transamerica BlackRock Natural Resources, Transamerica Clarion Global Real Estate Securities, Transamerica Evergreen Health Care, Transamerica JPMorgan International Bond, Transamerica Legg Mason Partners All Cap, Transamerica PIMCO Real Return TIPS, Transamerica Science & Technology, Transamerica Third Avenue Value, Transamerica UBS Dynamic Alpha and Transamerica Van Kampen Emerging Markets Debt are each currently a “non-diversified company” as that term is defined in the 1940 Act.

2. Borrowing

Each fund may not borrow money, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

3. Senior Securities

Each fund may not issue any senior security, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

4. Underwriting Securities

Each fund may not act as an underwriter of securities within the meaning of the Securities Act of 1933, as amended (“1933 Act”), except as permitted under the 1933 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time. Among other things, to the extent that the fund may be deemed to be an underwriter within the meaning of the 1933 Act, each fund may act as an underwriter of securities in connection with the purchase and sale of its portfolio securities in the ordinary course of pursuing its investment objective, investment policies and investment program.

5. Real Estate

Each fund may not purchase or sell real estate or any interests therein, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time. Notwithstanding this limitation, a fund may, among other things, (i) acquire or lease office space for its own use; (ii) invest in securities of issuers that invest in real estate or interests therein; (iii) invest in mortgage-related securities and other securities that are secured by real estate or interests therein; or (iv) hold and sell real estate acquired by the fund as a result of the ownership of securities.

6. Making Loans

Each fund may not make loans, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

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7. Concentration of Investments

Each fund may not “concentrate” its investments in a particular industry or group of industries (except those funds listed below), except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction from time to time, provided that, without limiting the generality of the foregoing, this limitation will not apply to securities issued or guaranteed as to principal and/or interest by the U.S. Government, its agencies or instrumentalities.

Transamerica BlackRock Natural Resources may concentrate in the natural resources related industries. Transamerica Clarion Global Real Estate Securities may concentrate in securities of issuers in the real estate industry. Transamerica Evergreen Health Care may concentrate in the health sciences industry.

8. Commodities

Each fund may not purchase physical commodities or contracts relating to physical commodities, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

NON-FUNDAMENTAL POLICIES

Furthermore, certain funds have adopted the following non-fundamental policies, which may be changed by Transamerica Funds’ Board of Trustees of the fund without shareholder approval.

(A) Exercising Control or Management

Except for Transamerica Oppenheimer Small- & Mid-Cap Value and Transamerica Van Kampen Mid-Cap Growth, each fund may not invest in companies for the purposes of exercising control or management.

(B) Purchasing Securities on Margin

Transamerica American Century Large Company Value, Transamerica Balanced, Transamerica Clarion Global Real Estate Securities, Transamerica Convertible Securities, Transamerica Equity, Transamerica Evergreen Health Care, Transamerica Evergreen International Small Cap, Transamerica Flexible Income, Transamerica Growth Opportunities, Transamerica High Yield Bond, Transamerica Jennison Growth, Transamerica Marsico International Growth, Transamerica MFS International Equity, Transamerica Money Market, Transamerica PIMCO Real Return TIPS, Transamerica PIMCO Total Return, Transamerica Short-Term Bond, Transamerica Small/Mid Cap Value, Transamerica Templeton Global, Transamerica UBS Large Cap Value, Transamerica Value Balanced, Transamerica Van Kampen Emerging Markets Debt and Transamerica Van Kampen Small Company Growth may not purchase securities on margin, except to obtain such short-term credits as are necessary for the clearance of transactions in options, futures contracts, swaps and forward contracts and other derivative instruments, and provided that margin payments and other deposits made in connection with transactions in options, futures contracts, swaps and forward contracts and other derivative instruments shall not constitute purchasing securities on margin.

Transamerica BlackRock Large Cap Value may not purchase securities on margin, except (i) for use of short-term credit necessary for the clearance of purchases of portfolio securities; and (ii) it may make margin deposits in connection with the futures contracts or other permissible investments.

(C) Illiquid Securities

No fund may purchase any security if, as a result, more than 15% of its net assets would be invested in illiquid securities, except that neither Transamerica High Yield Bond, nor Transamerica Money Market may invest more than 10% of its net assets in illiquid securities.

(D) Short Sales

Transamerica American Century Large Company Value, Transamerica BlackRock Large Cap Value, Transamerica Convertible Securities, Transamerica Equity, Transamerica Evergreen Health Care, Transamerica Evergreen International Small Cap, Transamerica Growth Opportunities, Transamerica High Yield Bond, Transamerica Marsico International Growth, Transamerica MFS International Equity, Transamerica Money Market, Transamerica PIMCO Real Return TIPS, Transamerica PIMCO Total Return, Transamerica Short-Term Bond, Transamerica Small/Mid Cap Value, Transamerica UBS Large Cap Value, Transamerica Value Balanced, Transamerica Van Kampen Emerging Markets Debt and Transamerica Van Kampen Small Company Growth may not sell securities short, except short sales “against the box.” A short sale against the box of a stock is where the seller actually owns or has the right to obtain at no additional cost the stock, but does not want to close out the position.

Transamerica Balanced, Transamerica Clarion Global Real Estate Securities, Transamerica Flexible Income, Transamerica Jennison Growth, and Transamerica Templeton Global may not sell securities short, unless they own or have the right to obtain securities equivalent in kind and amount to the securities sold short and provided that transactions in options, futures contracts, swaps, forward contracts and other derivative instruments are not deemed to constitute selling securities short.

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(E) Oil, Gas or Mineral Deposits

Transamerica Asset Allocation — Conservative Portfolio, Transamerica Asset Allocation — Growth Portfolio, Transamerica Asset Allocation — Moderate Growth Portfolio, Transamerica Asset Allocation - Moderate Portfolio, Transamerica Balanced, Transamerica Clarion Global Real Estate Securities, Transamerica Convertible Securities, Transamerica Flexible Income, Transamerica High Yield Bond, Transamerica Jennison Growth, Transamerica Money Market, Transamerica PIMCO Real Return TIPS, Transamerica PIMCO Total Return, Transamerica Short-Term Bond, Transamerica Value Balanced and Transamerica Van Kampen Small Company Growth may not invest in interests in oil, gas or other mineral development or exploration programs although they may invest in the marketable securities of companies that invest in or sponsor such programs.

Transamerica Evergreen Health Care may not invest in interests in oil, gas or other mineral development or exploration programs, if as a result thereof more than 5% of the value of its total assets would be invested in such programs.

(F) Mortgage or Pledge Securities

Transamerica Asset Allocation — Conservative Portfolio, Transamerica Asset Allocation — Growth Portfolio, Transamerica Asset Allocation — Moderate Growth Portfolio, Transamerica Asset Allocation - Moderate Portfolio, Transamerica Balanced, Transamerica Flexible Income, Transamerica Jennison Growth, Transamerica Marsico International Growth, Transamerica Templeton Global, and Transamerica Value Balanced may not mortgage or pledge any securities owned or held by the fund in amounts that exceed, in the aggregate, 15% of the fund’s net assets, provided that this limitation does not apply to reverse repurchase agreements or in the case of assets deposited to provide margin or guarantee positions in options, futures contracts, swaps, forward contracts or other derivative instruments or the segregation of assets in connection with such transactions.

Transamerica Evergreen Health Care, Transamerica High Yield Bond and Transamerica Small/Mid Cap Value may not mortgage, pledge, hypothecate or, in any manner, transfer any security owned by the fund as security for indebtedness except as may be necessary in connection with permissible borrowings or investments and then such mortgaging, pledging or hypothecating may not exceed 33¹/₃% of the fund’s total assets at the time of borrowing or investment.

Transamerica Convertible Securities and Transamerica Money Market may not mortgage or pledge any securities owned or held by the fund in amounts that exceed, in the aggregate, 15% of the fund’s net assets, provided that this limitation does not apply to reverse repurchase agreements or the segregation of assets in connection with such transactions.

(G) Investment in Other Investment Companies

Transamerica Balanced, Transamerica Clarion Global Real Estate Securities, Transamerica Evergreen Health Care, Transamerica Flexible Income, Transamerica Growth Opportunities, Transamerica High Yield Bond, Transamerica Jennison Growth, Transamerica Templeton Global, may not purchase securities of other investment companies, other than a security acquired in connection with a merger, consolidation, acquisition, reorganization or offer of exchange and except as permitted under the 1940 Act.

Transamerica JPMorgan Mid Cap Value may not acquire securities of other investment companies, except as permitted by the 1940 Act or any order pursuant thereto.

Transamerica AllianceBernstein International Value, Transamerica BlackRock Global Allocation, Transamerica Federated Market Opportunity, Transamerica JPMorgan International Bond, Transamerica Neuberger Berman International, and Transamerica Van Kampen Mid-Cap Growth may not purchase securities issued by registered open-end investment companies or registered unit investment trusts in reliance upon Section 12(d)(1)(F) or Section 12(d)(1)(G) of the 1940 Act.

(H) Futures Contracts

Transamerica Short-Term Bond may enter into futures contracts and write and buy put and call options relating to futures contracts.

Transamerica MFS International Equity and Transamerica Van Kampen Small Company Growth may enter into futures contracts and write and buy put and call options relating to futures contracts. The funds may not, however, enter into leveraged futures transactions if it would be possible for the fund to lose more money than it invested.

Transamerica Balanced, Transamerica Clarion Global Real Estate Securities, Transamerica Flexible Income, Transamerica Jennison Growth, Transamerica Templeton Global, may not (i) enter into any futures contracts or options on futures contracts for purposes other than bona fide hedging transactions within the meaning of Commodity Futures Trading Commission regulations if the aggregate initial margin deposits and premiums required to establish positions in futures contracts and related options that do not fall within the definition of bona fide hedging transactions would exceed 5% of the fair market value of the fund’s net assets, after taking into account unrealized profits and losses on such contracts it has entered into; and (ii) enter into any futures contracts or options on futures contracts if the aggregate amount of the fund’s commitments under outstanding futures contracts positions and options on futures contracts would exceed the market value of total assets.

Transamerica Marsico International Growth may not enter into any futures contracts if the aggregate amount of the fund’s commitments under outstanding futures contracts positions would exceed the market value of its total assets.

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Transamerica Evergreen Health Care may not purchase a futures contract or an option thereon, if, with respect to positions in futures or options on futures that do not represent bona fide hedging, the aggregate initial margin and premiums on such options would exceed 5% of the fund’s net asset value.

Transamerica High Yield Bond may not purchase or sell interest rate futures contracts (a) involving aggregate delivery or purchase obligations in excess of 30% of the fund’s net assets, or aggregate margin deposits made by the fund in excess of 5% of the fund’s net assets; (b) which are not for hedging purposes only; or (c) which are executed under custodial, reserve and other arrangements inconsistent with regulations and policies adopted or positions taken (i) by the Securities and Exchange Commission (“SEC”) for exemption from enforcement proceedings under Section 17(f) or 18(f) of the 1940 Act; (ii) by the Commodity Futures Trading Commission (“CFTC”) for exemption of investment companies registered under the 1940 Act from registration as “commodity pool operators” and from certain provisions of Subpart B of Part 4 of the CFTC’s regulations; or (iii) by a state securities commissioner or administrator in one or more of the states in which the fund’s shares have been qualified for public offering.

(I) “Joint and Several” Basis

Transamerica Science & Technology may not participate on a “joint” or “joint and several” basis in any trading accounts in securities.

(J) Foreign Issuers

Transamerica High Yield Bond, Transamerica Jennison Growth, and Transamerica JPMorgan Core Bond may not invest more than 25% of their net assets at the time of purchase in the securities of foreign issuers and obligors.

(K) Warrants

Transamerica Evergreen Health Care may not invest in warrants if, as a result thereof, more than 10% of the value of the net assets of the fund would be invested in warrants.

(L) Put, Call, Straddle or Spread Options

Transamerica High Yield Bond may not write or purchase put, call, straddle or spread options, or combinations thereof.

(M) Real Estate Limited Partnership

Transamerica High Yield Bond may not invest in real estate limited partnerships.

(N) Additional and Temporary Borrowings

Transamerica American Century Large Company Value and Transamerica MFS International Equity may not purchase additional investment securities at any time during which outstanding borrowings exceed 5% of the total assets of the fund.

Transamerica Evergreen Health Care and Transamerica Marsico Growth may not purchase additional securities when money borrowed exceeds 5% of its total assets. This restriction shall not apply to temporary borrowings until the fund’s assets exceed $40,000,000.

(O) Bank Time Deposits

Transamerica High Yield Bond may not invest in bank time deposits with maturities of over 7 calendar days, or invest more than 10% of the fund’s total assets in bank time deposits with maturities from 2 business days through 7 calendar days.

(P) Officers Ownership

Transamerica High Yield Bond may not purchase or retain the securities of any issuer if, to the fund’s knowledge, those officers and directors of the manager and sub-adviser who individually own beneficially more than 0.5% of the outstanding securities of such issuer together own beneficially more than 5% of such outstanding securities.

OTHER POLICIES AND PRACTICES OF THE FUNDS

The following investments are subject to all applicable rules and regulations and to limitations as set forth in each fund’s investment restrictions and policies. Unless otherwise specified in this SAI or in the prospectuses, the percentages set forth below and the percentage limitations set forth in the prospectuses apply at the time of the purchase of a security and shall not be considered violated unless an excess or deficiency occurs or exists immediately after and as a result of a purchase of such security.

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OPTIONS, FUTURES AND OTHER DERIVATIVE INSTRUMENTS

Options on Securities and Indices. In an effort to increase current income and to reduce fluctuations in net asset value, each of the funds, other than Transamerica High Yield Bond, may write covered put and call options and buy put and call options on securities that are traded on United States and foreign securities exchanges, and over-the-counter. A fund also may write call options that are not covered for cross-hedging purposes. A fund may write and buy options on the same types of securities that the fund may purchase directly. There are no specific limitations on a fund’s writing and buying of options on securities.

A call option gives the purchaser the right to buy, and a writer has the obligation to sell, the underlying security at the stated exercise price at any time prior to the expiration of the option, regardless of the market price or exchange rate of the security, as the case may be. The premium paid to the writer is consideration for undertaking the obligations under the option contract. A put option gives the purchaser the right to sell, and a writer has the obligation to buy, the underlying security at the stated exercise price at any time prior to the expiration date of the option, regardless of the market price or exchange rate of the security, as the case may be. A call option is covered if a fund owns the underlying security covered by the call or has an absolute and immediate right to acquire that security without additional cash consideration (or for additional cash consideration if the underlying security is held in a segregated account by its custodian) upon conversion or exchange of other securities held in its portfolio. A put option is covered if a fund segregates cash or other liquid assets with a value equal to the exercise price with its custodian. Put and call options will be valued at the last sale price or, in the absence of such a price, at the average between closing bid and asked price.

A fund may effectively terminate its right or obligation under an option by entering into a closing transaction. When a portfolio security or currency subject to a call option is sold, a fund will effect a “closing purchase transaction”—the purchase of a call option on the same security or currency with the same exercise price and expiration date as the call option which a fund previously has written. If a fund is unable to effect a closing purchase transaction, it will not be able to sell the underlying security or currency until the option expires or the fund delivers the underlying security or currency upon exercise. In addition, upon the exercise of a call option by the holder thereof, a fund will forego the potential benefit represented by market appreciation over the exercise price.

A put option written by a fund is “covered”, as that term is used in SEC interpretations and guidance regarding cover, if the fund (i) maintains cash not available for investment or other liquid assets with a value equal to the exercise price in a segregated account with its custodian (alternatively, liquid assets may be earmarked on the fund’s records) or (ii) holds a put on the same security and in the same principal amount as the put written and the exercise price of the put held is equal to or greater than the exercise price of the put written. The premium paid by the buyer of an option will reflect, among other things, the relationship of the exercise price to the market price and the volatility of the underlying security, the remaining term of the option, supply and demand and interest rates. A call option written by a fund is “covered” if the fund owns the underlying security covered by the call or has an absolute and immediate right to acquire that security without additional cash consideration (or has segregated additional cash consideration with its custodian (alternatively, liquid assets may be earmarked on the fund’s records)) upon conversion or exchange of other securities held in its portfolio. A call option is also deemed to be covered if a fund holds a call on the same security and in the same principal amount as the call written and the exercise price of the call held (i) is equal to or less than the exercise price of the call written or (ii) is greater than the exercise price of the call written if the fund has segregated additional cash consideration with its custodian, or earmarked liquid assets on its records equal to the difference between the exercise price of the call written and that of the call held to cover such call.

When a fund writes an option, an amount equal to the net premium (the premium less the commission) received by the fund is included in the liability section of its statement of assets and liabilities as a deferred credit. The amount of the deferred credit will be subsequently marked-to-market to reflect the current value of the option written. The current value of the traded option is the last sale price or, in the absence of a sale, the average of the closing bid and asked prices. If an option expires on the stipulated expiration date, or if a fund enters into a closing purchase transaction, it will realize a gain (or a loss if the cost of a closing purchase transaction exceeds the net premium received when the option is sold) and the deferred credit related to such option will be eliminated. If an option written by a fund is exercised, a fund may deliver the underlying security in the open market. In either event, the proceeds of the sale will be increased by the net premium originally received and a fund will realize a gain or loss.

Purchasers of options pay an amount known as a premium to the option writer in exchange for the right under the option contract. A principal reason for writing put and call options is to attempt to realize, through the receipt of premium income, a greater current return than would be realized on the underlying securities alone. This premium income will serve to enhance a fund’s total return and will reduce the effect of any price decline of the security involved in the option. In return for the premium received for a call option, a fund foregoes the opportunity for profit from a price increase in the underlying security above the exercise price so long as the option remains open, but retains the risk of loss should the price of the security decline. In return for the premium received for a put option, a fund assumes the risk that the price of the underlying security will decline below the exercise price, in which case the put would be exercised and the fund would suffer a loss.

Once the decision to write a call option has been made, a fund’s investment adviser or a sub-adviser, in determining whether a particular call option should be written on a particular security, will consider the reasonableness of the anticipated premium and the likelihood that a liquid secondary market will exist for those options. Closing transactions will be effected in order to realize a profit on an outstanding call option, to prevent an underlying security from being called, or to permit a sale of the underlying security. Furthermore, effecting a closing transaction will permit a fund to write another call option on the underlying security with either a different exercise price or expiration date or both. If a fund desires to sell a particular security from its portfolio on which it has written a call option, it will seek to effect a closing transaction prior to, or concurrently with, the sale of the security. There is, of course, no assurance that a fund will be able to effect such closing transactions at a favorable price. If a fund cannot enter into such a transaction, it may be required to hold a security that it might

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otherwise have sold, in which case it would continue to be at market risk on the security. This could result in higher transaction costs. The funds will pay transaction costs in connection with the purchase or writing of options to close out previously purchased or written options. Such transaction costs are normally higher than those applicable to purchases and sales of portfolio securities.

Exercise prices of options may be below, equal to, or above the current market values of the underlying securities at the time the options are written. From time to time, a fund may purchase an underlying security for delivery in accordance with an exercise notice of a call option, rather than delivering such security from its portfolio. In such cases, additional costs will be incurred. A fund will realize a profit or loss from a closing purchase transaction if the cost of the transaction is less or more than the premium received from the writing of the option. Because increases in the market price of a call option will generally reflect increases in the market price of the underlying security, any loss resulting from the writing of a call option is likely to be offset in whole or in part by appreciation of the underlying security owned by a fund.

A fund may purchase put options in an effort to protect the value of a security it owns against a possible decline in market value. When a fund purchases put options, that fund is purchasing the right to sell a specified security (or securities) within a specified period of time at a specified exercise price. Puts may be acquired to facilitate the liquidity of the portfolio assets. Puts may also be used to facilitate the reinvestment of assets at a rate of return more favorable than that of the underlying security. A fund may sell, transfer, or assign a put it has purchased only in conjunction with the sale, transfer, or assignment of the underlying security or securities. The amount payable to a fund upon its exercise of a “put” is normally (i) the fund’s acquisition cost of the securities subject to the put (excluding any accrued interest which the fund paid on the acquisition), less any amortized market premium or plus any accreted market or original issue discount during the period the fund owned the securities; plus (ii) all interest accrued on the securities since the last interest payment date during that period.

Writing a put option involves the risk of a decrease in the market value of the underlying security, in which case the option could be exercised and the underlying security would then be sold by the option holder to a fund at a higher price than its current market value. A fund retains the premium received from writing a put option whether or not the option is exercised.

Index options (or options on securities indices) are similar in many respects to options on securities, except that an index option gives the holder the right to receive, upon exercise, cash instead of securities, if the closing level of the securities index upon which the option is based is greater than, in the case of a call, or less than, in the case of a put, the exercise price of the option.

Because index options are settled in cash, a fund that writes a call on an index cannot determine the amount of its settlement obligations in advance and, unlike call writing on specific securities, cannot provide in advance for, or cover, its potential settlement obligations by acquiring and holding the underlying securities. A fund will segregate assets or otherwise cover index options that would require it to pay cash upon exercise.

Index options are also subject to the timing risk inherent in writing index options. When an index option is exercised, the amount of cash that the holder is entitled to receive is determined by the difference between the exercise price and the closing index level on the date when the option is exercised. If a fund has purchased an index option and exercises it before the closing index value for that day is available, it runs the risk that the level of the underlying index may subsequently change. If such a change causes the exercised option to fall “out-of-the-money”, the fund will be required to pay cash in an amount of the difference between the closing index value and the exercise price of the option.

Options on Foreign Currencies. A fund may buy and write options on foreign currencies in a manner similar to that in which futures contracts or forward contracts, both as described below, on foreign currencies will be utilized. For example, a decline in the U.S. dollar value of a foreign currency in which fund securities are denominated will reduce the U.S. dollar value of such securities, even if their value in the foreign currency remains constant. In order to protect against such diminutions in the value of fund securities, a fund may buy put options on the foreign currency. If the value of the currency declines, such fund will have the right to sell such currency for a fixed amount in U.S. dollars and, by doing so, will offset, in whole or in part, the adverse effect on its portfolio.

Conversely, when a rise in the U.S. dollar value of a currency in which securities to be acquired are denominated is projected, thereby increasing the cost of such securities, a fund may buy call options thereon. The purchase of such options could offset, at least partially, the effects of the adverse movements in exchange rates. If currency exchange rates do not move in the direction or to the extent desired, a fund could sustain losses on transactions in foreign currency options that would require such fund to forego a portion or all of the benefits of advantageous changes in those rates. In addition, as in the case of other types of options, the benefit to the fund from purchases of foreign currency options will be reduced by the amount of the premium and related transaction costs. Buying put or call options will not protect a fund against price movements in the securities that are attributable to other causes.

A fund may also write options on foreign currencies. For example, in attempting to hedge against a potential decline in the U.S. dollar value of foreign currency denominated securities due to adverse fluctuations in exchange rates, a fund could, instead of purchasing a put option, write a call option on the relevant currency. If the expected decline occurs, the option will most likely not be exercised and the diminution in value of fund securities will be offset by the amount of the premium received.

Similarly, instead of purchasing a call option to attempt to hedge against a potential increase in the U.S. dollar cost of securities to be acquired, a fund could write a put option on the relevant currency which, if exchange rates move in the manner projected, will expire unexercised and allow that fund to offset the increased cost of the securities up to the amount of premium. As in the case of other types of options, however, the writing of a foreign currency option will constitute only a partial hedge up to the amount of the premium. If

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exchange rates do not move in the expected direction, the option may be exercised and a fund would be required to buy or sell the underlying currency at a loss which may not be offset by the amount of the premium. Through the writing of options on foreign currencies, a fund also may lose all or a portion of the benefits which might otherwise have been obtained from favorable movements in exchange rates.

A fund may write covered call options on foreign currencies. A call option written on a foreign currency by a fund is “covered” if that fund owns the underlying foreign currency covered by the call or has an absolute and immediate right to acquire that foreign currency without additional cash consideration (or for additional cash consideration that is segregated by its custodian) upon conversion or exchange of other foreign currency held in its fund. A call option is also covered if: (i) a fund holds a call at the same exercise price for the same exercise period and on the same currency as the call written; or (ii) at the time the call is written, an amount of cash, or other liquid assets equal to the fluctuating market value of the optioned currency is segregated with the fund’s custodian.

A fund may write call options on foreign currencies for cross-hedging purposes that would not be deemed to be covered. A call option on a foreign currency is for cross-hedging purposes if it is not covered but is designed to provide a hedge against a decline due to an adverse change in the exchange rate in the U.S. dollar value of a security which the fund owns or has the right to acquire and which is denominated in the currency underlying the option. In such circumstances, a fund collateralizes the option by segregating cash or other liquid assets in an amount not less than the value of the underlying foreign currency in U.S. dollars marked-to-market daily.

The interbank market in non-U.S. currencies is a global and round-the-clock market. To the extent the U.S. options market is closed while the markets for the underlying currencies remain open, significant price and rate movements might take place in the underlying markets that cannot be reflected in the U.S. options market until it reopens. Transactions involving non-U.S. currencies might be required to take place within the country issuing the underlying currency. Thus, a fund might be required to accept or make delivery of the underlying non-U.S. currency in accordance with any U.S. or non-U.S. regulations regarding the maintenance of non-U.S. banking arrangements by U.S. residents and might be required to pay any fees, taxes and charges associated with such delivery assessed in the issuing country. Options on non-U.S. currencies also have the risks of options on securities and indices, as discussed above.

Futures Contracts and Options thereon. A fund may enter into futures contracts, purchase or sell options on any such futures contracts, and engage in related closing transactions, to the extent permissible by applicable law. Futures contracts are for the purchase and sale, for future delivery, of equity or fixed-income securities, foreign currencies or contracts based on financial indices, including indices of U.S. government securities, foreign government securities and equity or fixed-income securities. Certain funds may enter into interest rate futures contracts. These contracts are for the purchase or sale of underlying debt instruments when the contract expires. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index.

U.S. futures contracts are traded on exchanges which have been designated “contract markets” by the CFTC and must be executed through a Futures Commission Merchant (“FCM”), or brokerage firm, which is a member of the relevant contract market. Through their clearing corporations, the exchanges guarantee performance of the contracts as between the clearing members of the exchange.

The funds may use futures contracts to hedge against anticipated future changes in market conditions which otherwise might adversely affect the value of securities which these funds hold or intend to purchase. For example, when interest rates are expected to rise or market values of portfolio securities are expected to fall, a fund can seek through the sale of futures contracts to offset a decline in the value of its portfolio securities. When interest rates are expected to fall or market values are expected to rise, a fund, through the purchase of futures contracts, can attempt to secure better rates or prices than might later be available in the market when it effects anticipated purchases.

The funds also may purchase and sell put and call options on futures contracts. An option on a futures contract gives the purchaser the right, but not the obligation, in return for the premium paid, to assume (in the case of a call) or sell (in the case of a put) a position in a specified underlying futures contract (which position may be a long or short position) for a specified exercise price at any time during the option exercise period.

At the inception of a futures contract, a fund is required to make an initial margin deposit. Margin must also be deposited when writing a call or put option on a futures contract, in accordance with applicable exchange rules. Under certain circumstances, such as periods of high volatility, a fund may be required by an exchange to increase the level of its initial margin payment, and initial margin requirements might be increased generally in the future by regulatory action. A fund is also subject to calls for daily variation margin payments as the value of the futures position varies, a process known as “marking-to-market.” Daily variation margin calls could be substantial in the event of adverse price movements. If a fund has insufficient cash to meet daily variation margin requirements, it might need to sell securities at a time when such sales are disadvantageous.

If a fund were unable to liquidate a futures contract or an option on a futures position due to the absence of a liquid secondary market, the imposition of price limits or otherwise, it could incur substantial losses. The fund would continue to be subject to market risk with respect to the position. In addition, except in the case of purchased options, the fund would continue to be required to make daily variation margin payments and might be required to maintain the position being hedged by the future or option or to maintain cash or securities in a segregated account.

Futures transactions involve brokerage costs and require a fund to segregate liquid assets, such as cash or other liquid securities to cover its obligation under such contracts. There is a possibility that a fund may lose the expected benefit of futures transactions if interest rates or securities prices move in an unanticipated manner. Such unanticipated changes may also result in poorer overall performance than if a fund had not entered into any futures transactions. In addition, the value of futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities, limiting a fund’s ability to hedge effectively against interest rates and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions.

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Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract or an option on a futures contract can vary from the previous day’s settlement price; once that limit is reached, no trades may be made that day at a price beyond the limit. Daily price limits do not limit potential losses because prices could move to the daily limit for several consecutive days with little or no trading, thereby preventing liquidation of unfavorable positions.

With respect to futures contracts that are not legally required to “cash settle,” a fund may cover the open position by setting aside or earmarking liquid assets in an amount equal to the market value of the futures contact. With respect to futures that are required to “cash settle,” however, a fund is permitted to set aside or earmark liquid assets in an amount equal to the portfolio’s daily marked-to-market (net) obligation, if any, (in other words, the portfolio’s daily net liability, if any) rather than the market value of the futures contract. By setting aside assets equal to its net obligation under cash-settled futures, a fund will have the ability to employ leverage to a greater extent than if the fund were required to segregate assets equal to the full market value of the futures contract.

Futures transactions will be limited to the extent necessary to maintain the qualification of these funds as regulated investment companies. Pursuant to a claim for exemption filed with the CFTC and/or the National Futures Association on behalf of the funds and their adviser, the funds and the adviser are not deemed to be a “commodity pool” or “commodity pool operator” under the Commodity Exchange Act and are not subject to registration or regulation as such under the Commodity Exchange Act. By virtue of changes to CFTC regulations, the substantive limitations set forth in the funds exemption filing with respect to its use of futures contracts are no longer applicable.

Forward Contracts. A forward contract is an agreement between two parties in which one party is obligated to deliver a stated amount of a stated asset at a specified time in the future, and the other party is obligated to pay a specified invoice amount for the assets at the time of delivery. A fund may enter into forward contracts to purchase and sell government securities, foreign currencies or other financial instruments. Forward contracts generally are traded in an interbank market conducted directly between traders (usually large commercial banks) and their customers. Unlike futures contracts, which are standardized contracts, forward contracts can be specifically drawn to meet the needs of the parties that enter into them. The parties to a forward contract may agree to offset or terminate the contract before its maturity, or may hold the contract to maturity and complete the contemplated exchange.

The following discussion summarizes a fund’s principal uses of forward foreign currency exchange contracts (“forward currency contracts”).

Except for Transamerica UBS Dynamic Alpha, a fund may enter into forward currency contracts with stated contract values of up to the value of that fund’s assets. The funds may enter into forward currency contracts in order to hedge against adverse movements in exchange rates between currencies. A forward currency contract is an obligation to buy or sell an amount of a specified currency for an agreed upon price (which may be in U.S. dollars or another currency). A fund will exchange foreign currencies for U.S. dollars and for other foreign currencies in the normal course of business.

A fund may use currency exchange contracts in the normal course of business to lock in an exchange rate in connection with purchases and sales of securities denominated in foreign currencies (transaction hedge) or to lock in the U.S. dollar value of portfolio positions (position hedge). In addition, a fund may cross hedge currencies by entering into a transaction to purchase or sell one or more currencies that are expected to decline in value relative to other currencies to which a fund has or expects to have portfolio exposure. A fund may also engage in proxy hedging which is defined as entering into positions in one currency to hedge investments denominated in another currency, where the two currencies are economically linked. A fund’s entry into a forward currency contract, as well as any use of cross or proxy hedging techniques will generally require the fund to hold liquid securities or cash equal to a fund’s obligations in a segregated account throughout the duration of the contract. While a position hedge may offset both positive and negative currency fluctuations, it will not offset changes in security values caused by other factors. Proxy hedges may result in losses if the currency used to hedge does not perform similarly to the currency in which the hedged securities are denominated.

A fund may also combine forward currency contracts with investments in securities denominated in other currencies in order to achieve desired equity, credit and currency exposures. Such combinations are generally referred to as synthetic securities. For example, in lieu of purchasing a foreign equity or bond, a fund may purchase a U.S. dollar-denominated security and at the same time enter into a forward foreign currency exchange contract to exchange U.S. dollars for the contract’s underlying currency at a future date. By matching the amount of U.S. dollars to be exchanged with the anticipated value of the U.S. dollar-denominated security, a fund may be able to lock in the foreign currency value of the security and adopt a synthetic investment position reflecting the equity return or credit quality of the U.S. dollar-denominated security.

By entering into a forward currency contract in U.S. dollars for the purchase or sale of the amount of foreign currency involved in an underlying security transaction, the funds are able to protect themselves against a possible loss between trade and settlement dates resulting from an adverse change in the relationship between the U.S. dollar and such foreign currency. However, this tends to limit potential gains which might result from a positive change in such currency relationships. The funds may also hedge foreign currency exchange rate risk by engaging in currency financial futures and options transactions, which are described above. The forecasting of short-term currency market movements is extremely difficult and whether such a short-term hedging strategy will be successful is highly uncertain.

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It is impossible to forecast with precision the market value of portfolio securities at the expiration of a forward currency contract. Accordingly, it may be necessary for a fund to purchase additional currency on the spot market if the market value of the security is less than the amount of foreign currency such fund is obligated to deliver when a decision is made to sell the security and make delivery of the foreign currency in settlement of a forward contract. Conversely, it may be necessary to sell on the spot market some of the foreign currency received upon the sale of the portfolio security if its market value exceeds the amount of foreign currency such fund is obligated to deliver.

If a fund retains the portfolio security and engages in an offsetting transaction, it will incur a gain or a loss to the extent that there has been movement in forward currency contract prices. If a fund engages in an offsetting transaction, it may subsequently enter into a new forward currency contract to sell the foreign currency. Although such contracts tend to minimize the risk of loss due to a decline in the value of the hedged currency, they also tend to limit any potential gain which might result should the value of such currency increase. The funds will have to convert their holdings of foreign currencies into U.S. dollars from time to time. Although foreign exchange dealers do not charge a fee for conversion, they do realize a profit based on the difference (the “spread”) between the prices at which they are buying and selling various currencies.

Secondary markets generally do not exist for forward currency contracts, with the result that closing transactions generally can be made for forward currency contracts only by negotiating directly with the counterparty. Thus, there can be no assurance that a fund will in fact be able to close out a forward currency contract at a favorable price prior to maturity. In addition, in the event of insolvency of the counterparty, a fund might be unable to close out a forward currency contract at any time prior to maturity, if at all. In either event, a fund would continue to be subject to market risk with respect to the position, and would continue to be required to maintain the required cover.

While forward currency contracts are not currently regulated by the CFTC, the CFTC may in the future assert authority to regulate forward currency contracts. In such event, a fund’s ability to utilize forward currency contracts may be restricted. In addition, a fund may not always be able to enter into forward currency contracts at attractive prices and may be limited in its ability to use these contracts to hedge its assets.

Swaps and Swap-Related Products. In order to attempt to protect the value of its investments from interest rate or currency exchange rate fluctuations, a fund may, subject to its investment restrictions, enter into interest rate and currency exchange rate swaps, and may buy or sell interest rate and currency exchange rate caps and floors. A fund’s sub-adviser may enter into these transactions primarily to attempt to preserve a return or spread on a particular investment or portion of its portfolio. A fund also may enter into these transactions to attempt to protect against any increase in the price of securities the fund may consider buying at a later date.

Interest rate swaps involve the exchange by a fund with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments. The exchanged commitments can involve payments to be made in the same currency or in different currencies. The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index exceeds a predetermined interest rate, to receive payments of interest on a contractually based principal amount from the party selling the interest rate cap. The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a predetermined interest rate, to receive payments of interest on a contractually based principal amount from the party selling the interest rate floor.

A fund, subject to its investment restrictions, enters into interest rate swaps, caps and floors on either an asset-based or liability-based basis, depending upon whether it is hedging its assets or its liabilities, and will usually enter into interest rate swaps on a net basis (i.e., the two payment streams are netted out, with a fund receiving or paying, as the case may be, only the net amount of the two payments). The net amount of the excess, if any, of a fund’s obligations over its entitlements with respect to each interest rate swap, will be calculated on a daily basis. An amount of cash or other liquid assets having an aggregate net asset value at least equal to the accrued excess will be segregated by its custodian.

If a fund enters into an interest rate swap on other than a net basis, it will maintain a segregated account in the full amount accrued on a daily basis of its obligations with respect to the swap. A fund will not enter into any interest rate swap, cap or floor transaction unless the unsecured senior debt or the claims-paying ability of the other party thereto is rated in one of the three highest rating categories of at least one nationally recognized statistical rating organization at the time of entering into such transaction. A fund’s sub-adviser will monitor the creditworthiness of all counterparties on an ongoing basis. If there is a default by the counterparty to such a transaction, the fund will have contractual remedies pursuant to the agreements related to the transaction, which may be limited by applicable law in the case of the counterparty’s insolvency.

The swap market has grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. The funds’ sub-advisers have determined that, as a result, the swap market (except for certain credit default swaps discussed below) has become relatively liquid. The swap market is a relatively new market and is largely unregulated. It is possible that developments in the swap market, including potential government regulation, could adversely affect a fund’s ability to terminate existing credit default swap agreements (as discussed below) or to realize amounts to be received under such agreements.

Nonetheless, caps and floors are more recent innovations and, may be less liquid than swaps. To the extent a fund sells (i.e., writes) caps and floors, it will segregate cash or other liquid assets having an aggregate net asset value at least equal to the full amount, accrued on a daily basis, of its obligations with respect to any caps or floors.

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There is no limit on the amount of interest rate swap transactions that may be entered into by a fund, unless so stated in its investment objectives and policies. These transactions may in some instances involve the delivery of securities or other underlying assets by a fund or its counterparty to collateralize obligations under the swap.

Under the documentation currently used in those markets, the risk of loss with respect to interest rate swaps is limited to the net amount of the interest payments that a fund is contractually obligated to make. If the other party to an interest rate swap that is not collateralized defaults, a fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. A fund may buy and sell (i.e., write) caps and floors without limitation, subject to the segregation requirement described above.

In addition to the instruments, strategies and risks described in this SAI and in each prospectus, there may be additional opportunities in connection with options, futures contracts, forward currency contracts and other hedging techniques that become available as a fund’s sub-adviser develops new techniques, as regulatory authorities broaden the range of permitted transactions, and as new instruments are developed. The funds’ sub-advisers may use these opportunities to the extent they are consistent with each fund’s investment objective and as are permitted by a fund’s investment limitations and applicable regulatory requirements.

Credit Default Swaps. A fund may enter into credit default swap contracts for investment purposes. As the seller in a credit default swap contract, a fund would be required to pay the par (or other agreed-upon) value of a referenced debt obligation to the counterparty in the event of a default by a third party, such as a U.S. or foreign corporate issuer, on the debt obligation. In return, a fund would receive from the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, a fund would keep the stream of payments and would have no payment obligations. As the seller, a fund would be subject to investment exposure on the notional amount of the swap.

A fund may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio, in which case the fund would function as the counterparty referenced in the preceding paragraph. This would involve the risk that the investment may expire worthless and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability).

Credit default swap contracts involve special risks and may result in losses to a fund. Credit default swaps may in some cases be illiquid, and they increase credit risk since a fund has exposure to both the issuer of the referenced obligation and the counterparty to the credit default swap. As there is no central exchange or market for credit default swap transactions, they may be difficult to trade or value, especially in the event of market disruptions.

Total Rate of Return Swaps. A fund may enter into total rate of return swap contracts for investment purposes. Total rate of return swaps are contracts in which one party agrees to make payments of the total return from the underlying asset during the specified period, in return for payments equal to a fixed or floating rate of interest or the total return from another underlying asset.

Swaptions. A fund may write swaption contracts to manage exposure to fluctuations in interest rates and to enhance fund yield. Swaption contracts written by a fund represent an option that gives the purchaser the right, but not the obligation, to enter into a previously agreed upon swap contract on a future date. If a written call swaption is exercised, the writer will enter a swap and is obligated to pay the fixed rate and receive a variable rate in exchange. Swaptions are marked-to-market daily based upon quotations from market makers.

Euro Instruments. The funds may make investments in Euro instruments. Euro instruments are U.S. dollar-denominated futures contracts, or options thereon, which are linked to the London Interbank Offered Rate (the “LIBOR”), although foreign currency-denominated instruments are available from time to time. Euro futures contracts enable purchasers to obtain a fixed rate for the lending of cash, and sellers to obtain a fixed rate for borrowings. A fund might use Euro futures contracts and options thereon to hedge against changes in LIBOR, which may be linked to many interest rate swaps and fixed-income instruments.

Special Investment Considerations and Risks. The use of options, futures and certain other derivative instruments is subject to applicable rules and regulations of the SEC, the CFTC, and the several exchanges on which they are traded. Options, futures and other derivative instruments generally are used to attempt to hedge against price movements in one or more particular securities positions that a fund owns or intends to acquire and in certain instances to hedge against market sectors in which a fund has invested or expects to invest. In addition, a fund’s ability to use these instruments may be limited by tax considerations and may also increase the amount of taxes payable by shareholders.

The successful use of the investment practices described above with respect to futures contracts, options on futures contracts, forward contracts, options on securities and indices, options on foreign currencies and swaps, including credit default swaps, and swap-related products draws upon skills and experience which are different from those needed to select the other instruments in which a fund may invest. Should interest or exchange rates, or the prices of securities or financial indices move in an unexpected manner, a fund may not achieve the desired benefits of the foregoing instruments or may realize losses and thus be in a worse position than if such strategies had not been used. In general, these investment practices may increase the volatility of a fund and even a small investment in derivatives may magnify or otherwise increase investment losses to a fund. Unlike many exchange-traded futures contracts and options on futures contracts, there are no daily price fluctuation limits with respect to options on currencies, forward contracts and other negotiated or over-the-counter instruments, and adverse market movements could therefore continue to an unlimited extent over a period of time. In addition, the correlation between movements in the price of the securities and currencies hedged or used for cover will not be perfect and could produce unanticipated losses.

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A fund’s ability to dispose of its positions in the foregoing instruments will depend on the availability of liquid markets in the instruments or, in the absence of a liquid market, the ability and willingness of the other party to the transaction to enter into a closing transaction. Markets in a number of the instruments are relatively new and still developing, and it is impossible to predict the amount of trading interest that may exist in those instruments in the future. Therefore, there is no assurance that any position can be disposed of at a time and price that is favorable to a fund. The purchase and sale of futures contracts and the exercise of options may cause a fund to sell or purchase related investments, thus increasing its portfolio turnover rate. Brokerage commissions paid by a fund with respect to options, futures and other derivative instruments may be higher than those that would apply to direct purchases or sales of the underlying instruments.

Particular risks exist with respect to the use of each of the foregoing instruments and could result in such adverse consequences to a fund as: the possible loss of the entire premium paid for an option bought by a fund; the inability of a fund, as the writer of a covered call option, to benefit from the appreciation of the underlying securities above the exercise price of the option; and the possible need to defer closing out positions in certain instruments to avoid adverse tax consequences. As a result, no assurance can be given that a fund will be able to use those instruments effectively for their intended purposes.

In connection with certain of its derivatives transactions, a fund might be required to maintain assets as cover, maintain segregated accounts or make margin payments to ensure that such fund will be able to meet its obligations pursuant to these instruments. If a fund were unable to close out its positions in these instruments, it might be required to continue to maintain such assets or accounts or make such payments until the position expired or matured. These requirements could impede implementation of a fund’s investment policies or its ability to meet redemption requests or other current obligations.

Additional Risks of Options on Foreign Currencies, Forward Contracts and Foreign Instruments. Unlike transactions entered into by a fund in futures contracts, options on foreign currencies and forward contracts are not traded on contract markets regulated by the CFTC or (with the exception of certain foreign currency options) by the SEC. Such instruments are traded through financial institutions acting as market-makers, although foreign currency options are also traded on certain national securities exchanges, such as the Philadelphia Stock Exchange and the Chicago Board Options Exchange, subject to SEC regulation.

Options on currencies may be traded over-the-counter. In an over-the-counter trading environment, many of the protections afforded to exchange participants will not be available, as discussed above. Although the buyer of an option cannot lose more than the amount of the premium plus related transaction costs, this entire amount could be lost. Moreover, an option writer and a buyer or seller of futures or forward contracts could lose amounts substantially in excess of any premium received or initial margin or collateral posted due to the potential additional margin and collateral requirements associated with such positions.

Options on foreign currencies traded on national securities exchanges are within the jurisdiction of the SEC, as are other securities traded on such exchanges. As a result, many of the protections provided to traders on organized exchanges will be available with respect to such transactions. In particular, all foreign currency option positions entered into on a national securities exchange are cleared and guaranteed by the Office of the Comptroller of the Currency (the “OCC”), thereby reducing the risk of counterparty default. Further, a liquid secondary market in options traded on a national securities exchange may be more readily available than in the over-the-counter market, potentially permitting a fund to liquidate open positions at a profit prior to exercise or expiration, or to limit losses in the event of adverse market movements.

The purchase and sale of exchange-traded foreign currency options, however, is subject to the risks of the availability of a liquid secondary market described above, as well as the risks regarding adverse market movements, margining of options written, the nature of the foreign currency market, possible intervention by governmental authorities and the effects of other political and economic events.

In addition, exchange-traded options on foreign currencies involve certain risks not presented by the over-the-counter market. For example, exercise and settlement of such options must be made exclusively through the OCC, which has established banking relationships in applicable foreign countries for this purpose. As a result, the OCC may, if it determines that foreign government restrictions or taxes would prevent the orderly settlement of foreign currency option exercises, or would result in undue burdens on the OCC or its clearing member, impose special procedures on exercise and settlement. These include such things as technical changes in the mechanics of delivery of currency, the fixing of dollar settlement prices or prohibitions on exercise.

In addition, options on U.S. government securities, futures contracts, options on futures contracts, forward contracts and options on foreign currencies may be traded on foreign exchanges and over-the-counter in foreign countries. Such transactions are subject to the risk of governmental actions affecting trading in or the prices of foreign currencies or securities. The value of such positions also could be adversely affected by: (i) other complex foreign political and economic factors; (ii) less availability than that available in the United States of data on which to make trading decisions; (iii) delays in a fund’s ability to act upon economic events occurring in foreign markets during non-business hours in the United States; (iv) the imposition of different exercise and settlement terms and procedures and margin requirements than in the United States; and (v) low trading volume.

U.S. GOVERNMENT SECURITIES

Examples of the types of U.S. government securities that a fund may hold include, in addition to those described in the prospectus, direct obligations of the U.S. Treasury, the obligations of the Federal Housing Administration, Farmers Home Administration, Small Business Administration, General Services Administration, Central Bank for Cooperatives, Federal Farm Credit Banks, Federal Home Loan Bank, Federal Intermediate Credit Banks, Federal Land Banks and Maritime Administration. U.S. government securities may be supported by the full faith and credit of the U.S. government (such as securities of the Small Business Administration); by the right of the issuer to borrow from the Treasury (such as securities of the Federal Home Loan Bank); by the discretionary authority of the U.S. government to purchase the agency’s obligations (such as securities of the Federal National Mortgage Association); or only by the credit of the issuing agency.

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Obligations guaranteed by U.S. government agencies or government-sponsored entities include issues by non-government-sponsored entities (like financial institutions) that carry direct guarantees from U.S. government agencies or government sponsored entities as part of government initiatives in response to the market crisis or otherwise. In the case of obligations not backed by the full faith and credit of the United States, a fund must look principally to the agency or instrumentality issuing or guaranteeing the obligation for ultimate repayment and may not be able to assert a claim against the United States itself in the event the agency or instrumentality does not meet its commitments. Neither the U.S. government nor any of its agencies or instrumentalities guarantees the market value of the securities they issue. Therefore, the market value of such securities will fluctuate in response to changes in interest rates.

Exchange Rate-Related U.S. Government Securities. To the extent permitted by a fund’s investment policies, a fund may invest in U.S. government securities for which the principal repayment at maturity, while paid in U.S. dollars, is determined by reference to the exchange rate between the U.S. dollar and the currency of one or more foreign countries (“Exchange Rate-Related Securities”). The interest payable on these securities is denominated in U.S. dollars, is not subject to foreign currency risk and, in most cases, is paid at rates higher than most other U.S. government securities in recognition of the foreign currency risk component of Exchange Rate-Related Securities. Exchange Rate-Related Securities are issued in a variety of forms, depending on the structure of the principal repayment formula. The principal repayment formula may be structured so that the security holder will benefit if a particular foreign currency to which the security is linked is stable or appreciates against the U.S. dollar. In the alternative, the principal repayment formula may be structured so that the securityholder benefits if the U.S. dollar is stable or appreciates against the linked foreign currency. Finally, the principal repayment formula can be a function of more than one currency and, therefore, be designed as a combination of those forms.

Investments in Exchange Rate-Related Securities entail special risks. There is the possibility of significant changes in rates of exchange between the U.S. dollar and any foreign currency to which an Exchange Rate-Related Security is linked. If currency exchange rates do not move in the direction or to the extent anticipated by a sub-adviser at the time of purchase of the security, the amount of principal repaid at maturity might be significantly below the par value of the security, which might not be offset by the interest earned by a fund over the term of the security. The rate of exchange between the U.S. dollar and other currencies is determined by the forces of supply and demand in the foreign exchange markets. These forces are affected by the international balance of payments and other economic and financial conditions, government intervention, speculation and other factors. The imposition or modification of foreign exchange controls by the U.S. or foreign governments or intervention by central banks could also affect exchange rates. Finally, there is no assurance that sufficient trading interest to create a liquid secondary market will exist for a particular Exchange Rate-Related Security because of conditions in the debt and foreign currency markets. Illiquidity in the forward foreign exchange market and the high volatility of the foreign exchange market may from time to time combine to make it difficult to sell an Exchange Rate-Related Security prior to maturity without incurring a significant price loss.

FOREIGN INVESTMENTS

Each fund may invest in foreign securities through the purchase of securities of foreign issuers or of American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and Fiduciary Depositary Receipts (“FDRs”) or other securities representing underlying shares of foreign companies. Generally, ADRs, in registered form, are designed for use in U.S. securities markets and EDRs, GDRs and FDRs, in bearer form, are designed for use in European and global securities markets. ADRs are receipts typically issued by a U.S. bank or trust company evidencing ownership of the underlying securities. EDRs, GDRs and FDRs are European, global and fiduciary receipts, respectively, evidencing a similar arrangement.

Because foreign companies are not subject to uniform accounting, auditing and financial reporting standards, practices and requirements comparable to those applicable to U.S. companies, there may be less publicly available information about a foreign company than about a U.S. company. Volume and liquidity in most foreign markets are less than in the U.S., and securities of many foreign companies are less liquid and more volatile than securities of comparable U.S. companies. The less liquid a market, the more difficult it may be for a fund to accurately price its portfolio securities or to dispose of such securities at the times determined by a sub-adviser to be appropriate. The risks associated with reduced liquidity may be particularly acute in situations in which a fund’s operations require cash, such as in order to meet redemptions and to pay its expenses. Fixed commissions on foreign securities exchanges are generally higher than negotiated commissions on U.S. exchanges, although a fund will endeavor to achieve the most favorable net results on portfolio transactions. There is generally less government supervision and regulation of foreign securities exchanges, brokers, dealers and listed companies than in the U.S., thus increasing the risk of delayed settlements of portfolio transactions or loss of certificates for portfolio securities.

A fund may be subject to taxes, including withholding taxes imposed by certain non-U.S. countries on income (possibly including, in some cases, capital gains) earned with respect to the fund’s investments in such countries. These taxes will reduce the return achieved by the fund. Treaties between the U.S. and such countries may reduce the otherwise applicable tax rates.

Additionally, the operating expenses of a fund making foreign investments can be expected to be higher than those of an investment company investing exclusively in U.S. securities, since the costs of investing in foreign securities are higher than the costs of investing exclusively in U.S. securities. Custodian services and other costs such as valuation costs and communication costs relating to investment in international securities markets generally are more expensive than in the U.S.

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Each fund also may invest in notes and similar linked securities (e.g., zero strike warrants and debt), which are derivative instruments issued by a financial institution or special purpose entity the performance and price of which depends on the performance and price of a corresponding foreign security, securities, market or index. Upon redemption or maturity, the principal amount or redemption amount is payable based on the price level of the linked security, securities, market or index at the time of redemption or maturity, or is exchanged for corresponding shares of common stock or units of the linked security. These securities are generally subject to the same risks as direct holdings of securities of foreign issuers and non-dollar securities, including currency risk and the risk that the amount payable at maturity or redemption will be less than the principal amount of the derivative instrument because the linked security, securities, market or index has declined. Also, these securities are subject to counterparty risk, which is the risk that the company issuing such a linked security may fail to pay the full amount due at maturity or redemption. A fund could have difficulty disposing of these securities because there may be restrictions on redemptions and there may be no market or a thin trading market in such securities.

Foreign markets also have different clearance and settlement procedures; and in certain markets, there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. Such delays in settlement could result in temporary periods when a portion of the assets of a fund investing in foreign markets is uninvested and no return is earned thereon. The inability of such a fund to make intended security purchases due to settlement problems could cause the fund to miss attractive investment opportunities. Losses to a fund due to subsequent declines in the value of portfolio securities, or losses arising out of an inability to fulfill a contract to sell such securities, could result in potential liability to the fund. In addition, with respect to certain foreign countries, there is the possibility of expropriation or confiscatory taxation, political or social instability, or diplomatic developments which could affect the investments in those countries. Moreover, individual foreign economies may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross national product, rate of inflation, capital reinvestment, resource self-sufficiency and balance of payments position.

In many instances, foreign debt securities may provide higher yields than securities of domestic issuers which have similar maturities and quality. Under certain market conditions these investments may be less liquid than the securities of U.S. corporations and are certainly less liquid than securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. Finally, in the event of a default of any such foreign debt obligations, it may be more difficult to obtain or to enforce a judgment against the issuers of such securities.

If a security is denominated in foreign currency, the value of the security to a fund will be affected by changes in currency exchange rates and in exchange control regulations, and costs will be incurred in connection with conversions between currencies. Currency risks generally increase in lesser developed markets. Exchange rate movements can be large and can endure for extended periods of time, affecting either favorably or unfavorably the value of a fund’s assets. The value of the assets of a fund as measured in U.S. dollars may be affected favorably or unfavorably by changes in foreign currency exchange rates and exchange control regulations.

A change in the value of any foreign currency against the U.S. dollar will result in a corresponding change in the U.S. dollar value of securities denominated in that currency. Such changes will also affect the income and distributions to shareholders of a fund investing in foreign markets. In addition, although a fund will receive income on foreign securities in such currencies, it will be required to compute and distribute income in U.S. dollars. Therefore, if the exchange rate for any such currency declines materially after income has been accrued and translated into U.S. dollars, a fund could be required to liquidate portfolio securities to make required distributions. Similarly, if an exchange rate declines between the time a fund incurs expenses in U.S. dollars and the time such expenses are paid, the amount of such currency required to be converted into U.S. dollars in order to pay such expenses in U.S. dollars will be greater.

ADRs, which are traded in the United States on exchanges or over-the-counter, are issued by domestic banks. ADRs represent the right to receive securities of foreign issuers deposited in a domestic bank or a correspondent bank. ADRs do not eliminate all the risk inherent in investing in foreign issuers’ stock. However, by investing in ADRs rather than directly in foreign issuers’ stock, a fund can avoid currency risks during the settlement period for either purchase or sales.

In general, there is a large, liquid market in the United States for many ADRs. The information available for ADRs is subject to the accounting, auditing and financial reporting standards of the domestic market or exchange on which they are traded, which standards are more uniform and more exacting than those to which many foreign issuers may be subject. Certain ADRs, typically those denominated as unsponsored, require the holders thereof to bear most of the costs of such facilities, while issuers of sponsored facilities normally pay more of the costs thereof. The depositary of an unsponsored facility frequently is under no obligation to distribute shareholder communications received from the issuer of the deposited securities or to pass through the voting rights to facility holders with respect to the deposited securities, whereas the depositary of a sponsored facility typically distributes shareholder communications and passes through the voting rights.

Sovereign Debt Securities. Certain funds may invest in securities issued or guaranteed by any country and denominated in any currency. Except for funds that are permitted to invest in emerging markets, these funds expect to generally invest in developed countries. Developed countries include, without limitation, Australia, Canada, Finland, France, Germany, the Netherlands, Japan, Italy, New Zealand, Norway, Spain, Sweden, the United Kingdom and the United States. The obligations of governmental entities have various kinds of government support and include obligations issued or guaranteed by governmental entities with taxing power. These obligations may or may not be supported by the full faith and credit of a government. Debt securities issued or guaranteed by foreign governmental entities have credit characteristics similar to those of domestic debt securities but are subject to the risks attendant to foreign investments, which are discussed above.

The funds may also purchase securities issued by semi-governmental or supranational agencies such as the Asian Developmental Bank, the International Bank for Reconstruction and Development, the Export-Import Bank and the European Investment Bank. The governmental members, or “stockholders,” usually make initial capital contributions to the supranational entity and in many cases are committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. Certain funds will not invest more than 25% of their assets in the securities of supranational entities.

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Sovereign debt is subject to risks in addition to those relating to non-U.S. investments generally. As a sovereign entity, the issuing government may be immune from lawsuits in the event of its failure or refusal to pay the obligations when due. The debtor’s willingness or ability to repay in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its non-U.S. reserves, the availability of sufficient non-U.S. exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, the sovereign debtor’s policy toward principal international lenders and the political constraints to which the sovereign debtor may be subject. Sovereign debtors also may be dependent on expected disbursements from foreign governments or multinational agencies, the country’s access to trade and other international credits, and the country’s balance of trade. Some emerging market sovereign debtors have in the past rescheduled their debt payments or declared moratoria on payments, and similar occurrences may happen in the future. There is no bankruptcy proceeding by which sovereign debt on which governmental entities have defaulted may be collected in whole or in part.

Emerging Markets. Certain funds may invest in securities of emerging market countries. Emerging market countries may include, without limitation, any country which, at the time of investment, is categorized by the World Bank in its annual categorization as middle- or low-income. These securities may be U.S. dollar denominated or non- U.S. dollar denominated and include: (a) debt obligations issued or guaranteed by foreign national, provincial, state, municipal or other governments with taxing authority or by their agencies or instrumentalities, including Brady Bonds; (b) debt obligations of supranational entities; (c) debt obligations (including dollar and non-dollar denominated) and other debt securities of foreign corporate issuers; and (d) non-dollar denominated debt obligations of U.S. corporate issuers. A fund may also invest in securities denominated in currencies of emerging market countries. There is no minimum rating criteria for a fund’s investments in such securities.

Emerging market and certain other non-U.S. countries may be subject to a greater degree of economic, political and social instability. Such instability may result from, among other things: (i) authoritarian governments or military involvement in political and economic decision making; (ii) popular unrest associated with demands for improved economic, political and social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring countries; and (v) ethnic, religious and racial disaffection and conflict. Such economic, political and social instability could significantly disrupt the financial markets in such countries and the ability of the issuers in such countries to repay their obligations. Investing in emerging countries also involves the risk of expropriation, nationalization, confiscation of assets and property or the imposition of restrictions on foreign investments and on repatriation of capital invested. In the event of such expropriation, nationalization or other confiscation in any emerging country, a fund could lose its entire investment in that country. Certain emerging market countries restrict or control foreign investment in their securities markets to varying degrees. These restrictions may limit a fund’s investment in those markets and may increase the expenses of the fund. In addition, the repatriation of both investment income and capital from certain markets in the region is subject to restrictions such as the need for certain governmental consents. Even where there is no outright restriction on repatriation of capital, the mechanics of repatriation may affect certain aspects of a fund’s operation. Economies in individual non-U.S. countries may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross domestic product, rates of inflation, currency valuation, capital reinvestment, resource self-sufficiency and balance of payments positions. Many non-U.S. countries have experienced substantial, and in some cases extremely high, rates of inflation for many years. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, very negative effects on the economies and securities markets of certain emerging market countries. Economies in emerging market countries generally depend heavily upon international trade and, accordingly, have been and may continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. The economies, securities and currency markets of many emerging market countries have experienced significant disruption and declines. There can be no assurances that these economic and market disruptions will not continue.

Certain funds may invest in Brady Bonds, which are securities created through the exchange of existing commercial bank loans to sovereign entities for new obligations in connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico, Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, and Venezuela.

Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar) and are actively traded in the over-the-counter secondary market. Brady Bonds are not considered to be U.S. Government securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed-rate par bonds or floating-rate discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero coupon bonds having the same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one-year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed-rate bonds, is equal to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter. Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity (these uncollateralized amounts constitute the “residual risk”).

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Most Mexican Brady Bonds issued to date have principal repayments at final maturity fully collateralized by U.S. Treasury zero coupon bonds (or comparable collateral denominated in other currencies) and interest coupon payments collateralized on an 18-month rolling-forward basis by funds held in escrow by an agent for the bondholders. A significant portion of the Venezuelan Brady Bonds and the Argentine Brady Bonds issued to date have principal repayments at final maturity collateralized by U.S. Treasury zero coupon bonds (or comparable collateral denominated in other currencies) and/or interest coupon payments collateralized on a 14-month (for Venezuela) or 12-month (for Argentina) rolling-forward basis by securities held by the Federal Reserve Bank of New York as collateral agent.

Brady Bonds involve various risk factors including residual risk and the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady Bonds. There can be no assurance that Brady Bonds in which the fund may invest will not be subject to restructuring arrangements or to requests for new credit, which may cause the fund to suffer a loss of interest or principal on any of its holdings.

SHORT SALES

Certain funds may from time to time sell securities short. In the event that the sub-adviser anticipates that the price of a security will decline, it may sell the security short and borrow the same security from a broker or other institution to complete the sale. A fund will incur a profit or a loss, depending upon whether the market price of the security decreases or increases between the date of the short sale and the date on which the fund must replace the borrowed security. All short sales will be fully collateralized. Short sales represent an aggressive trading practice with a high risk/return potential, and short sales involve special considerations. Risks of short sales include that possible losses from short sales may be unlimited (e.g., if the price of a stock sold short rises), whereas losses from direct purchases of securities are limited to the total amount invested, and a fund may be unable to replace a borrowed security sold short.

Certain funds may make short sales of securities, either as a hedge against potential declines in value of a portfolio security or to realize appreciation when a security that the fund does not own declines in value. When a fund makes a short sale, it borrows the security sold short and delivers it to the broker-dealer through which it made the short sale. A fund may have to pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed securities to the lender of the securities.

A fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer, usually in cash, U.S. Government securities or other liquid securities similar to those borrowed. With respect to uncovered short positions, a fund is required to deposit similar collateral with its custodian, if necessary, to the extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current market value of the security sold short. Depending on arrangements made with the broker-dealer from which a fund borrowed the security, regarding payment received by the fund on such security, a fund may not receive any payments (including interest) on its collateral deposited with such broker-dealer.

Because making short sales in securities that it does not own exposes a fund to the risks associated with those securities, such short sales involve speculative exposure risk. A fund will incur a loss as a result of a short sale if the price of the security increases between the date of the short sale and the date on which the fund replaces the borrowed security. As a result, if a fund makes short sales in securities that increase in value, it will likely underperform similar mutual funds that do not make short sales in securities. A fund will realize a gain on a short sale if the security declines in price between those dates. There can be no assurance that a fund will be able to close out a short sale position at any particular time or at an acceptable price. Although a fund’s gain is limited to the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the security, less the price at which the security was sold and may, theoretically, be unlimited.

A fund may also make short sales “against the box.” In this type of short sale, at the time of the sale, a fund owns or has the immediate and unconditional right to acquire the identical security at no additional cost. In the event that a fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the fund would forego the potential realization of the increased value of the shares sold short.

OTHER INVESTMENT COMPANIES

Subject to applicable investment restrictions, a fund may invest in securities issued by other investment companies as permitted under the 1940 Act. A fund may indirectly bear a portion of any investment advisory fees and expenses and distribution (12b-1) fees paid by funds in which it invests, in addition to the advisory fees and expenses paid by the fund. Investments in other investment companies are subject to the risks of the securities in which those investment companies invest.

Exchange-Traded Funds (“ETFs”). Subject to limitations under the 1940 Act, a fund may invest in shares of investment companies known as ETFs. For example, a fund may invest in S&P Depositary Receipts, or “SPDRs.” SPDRs are securities that represent ownership in a long-term unit investment trust that holds a portfolio of common stocks designed to track the performance of the S&P 500 Index. A fund investing in a SPDR would be entitled to the dividends that accrue to the S&P 500 stocks in the underlying portfolio, less trust expenses. Investing in these securities may result in duplication of certain fees and expenses paid by these securities in addition to the advisory fees and expenses paid by the fund. Other examples of ETFs in which the funds may invest are Dow Industrial Average Model New Deposit Shares (“DIAMONDS”) (interests in a portfolio of securities that seeks to track the performance of the Dow Jones Industrial Average), WEBS or World Equity Benchmark Shares (interests in a portfolio of securities that seeks to track the performance of a benchmark index of a particular foreign country’s stocks), and the Nasdaq-100 Trust or QQQ (interests in a portfolio of securities of the largest and most actively traded non-financial companies listed on the NASDAQ Stock Market).

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WHEN-ISSUED, DELAYED SETTLEMENT AND FORWARD DELIVERY SECURITIES

Securities may be purchased and sold on a “when-issued,” “delayed settlement” or “forward (delayed) delivery” basis. “When-issued” or “forward delivery” refers to securities whose terms are available, and for which a market exists, but which are not available for immediate delivery. When-issued or forward delivery transactions may be expected to occur a month or more before delivery is due. A fund may engage in when-issued transactions to obtain what is considered to be an advantageous price and yield at the time of the transaction. When a fund engages in when-issued or forward delivery transactions, it will do so consistent with its investment objective and policies and not for the purpose of investment leverage (although leverage may result).

“Delayed settlement” is a term used to describe settlement of a securities transaction in the secondary market which will occur sometime in the future. No payment or delivery is made by a fund until it receives payment or delivery from the other party for any of the above transactions. A fund will segregate with its custodian cash, U.S. government securities or other liquid assets at least equal to the value or purchase commitments until payment is made. The segregated securities will either mature or, if necessary, be sold on or before the settlement date. This may result in the realization of capital gains or losses, which are generally subject to federal income tax when distributed to a fund’s shareholders. Typically, no income accrues on securities purchased on a delayed delivery basis prior to the time delivery of the securities is made, although a fund may earn income on securities it has segregated to collateralize its delayed delivery purchases.

New issues of stocks and bonds, private placements and U.S. government securities may be sold in this manner. At the time of settlement, the market value and/or the yield of the security may be more or less than the purchase price. A fund bears the risk of such market value fluctuations. These transactions also involve the risk that the other party to the transaction may default on its obligation to make payment or delivery. As a result, a fund may be delayed or prevented from completing the transaction and may incur additional costs as a consequence of the delay.

ZERO-COUPON, PAY-IN-KIND AND STEP-COUPON SECURITIES

Subject to its investment restrictions, a fund may invest in zero-coupon, pay-in-kind and step-coupon securities. Zero-coupon bonds are issued and traded at a discount from their face value. They do not entitle the holder to any periodic payment of interest prior to maturity. Step-coupon bonds trade at a discount from their face value and pay coupon interest. The coupon rate is low for an initial period and then increases to a higher coupon rate thereafter. The discount from the face amount or par value depends on the time remaining until cash payments begin, prevailing interest rates, liquidity of the security and the perceived credit quality of the issuer. Pay-in-kind bonds give the issuer an option to pay cash at a coupon payment date or give the holder of the security a similar bond with the same coupon rate and a face value equal to the amount of the coupon payment that would have been made. Certain funds may also invest in “strips,” which are debt securities that are stripped of their interest after the securities are issued, but otherwise are comparable to zero-coupon bonds.

Federal income tax law requires holders of zero-coupon securities and step-coupon securities to report the portion of the original issue discount on such securities that accrue that year as interest income, even though the holders receive no cash payments of interest during the year. In order to qualify for treatment as a “regulated investment company” under the Internal Revenue Code of 1986, as amended (“Code”), a fund must distribute substantially all of its investment company taxable income (computed without regard to the deduction for dividends paid), including the original issue discount accrued on zero-coupon or step-coupon bonds. Because it will not receive cash payments on a current basis in respect of accrued original-issue discount on zero-coupon bonds or step-coupon bonds during the period before interest payments begin, in some years a fund may have to distribute cash obtained from other sources in order to satisfy the distribution requirements under the Code. A fund might obtain such cash from selling other portfolio holdings. These actions may reduce the assets to which fund expenses could be allocated and may reduce the rate of return for such fund. In some circumstances, such sales might be necessary in order to satisfy cash distribution requirements even though investment considerations might otherwise make it undesirable for a fund to sell the securities at the time.

Generally, the market prices of zero-coupon bonds and strip securities are more volatile than the prices of securities that pay interest periodically in cash and they are likely to respond to changes in interest rates to a greater degree than other types of debt securities having similar maturities and credit quality.

DOLLAR ROLLS

Certain funds may enter into dollar rolls transactions, pursuant to which a fund sells securities and simultaneously contracts to repurchase substantially similar securities on a specified future date. In the case of dollar rolls involving mortgage-backed securities, the mortgage-backed securities that are purchased typically will be of the same type and will have the same or similar interest rate and maturity as those sold, but will be supported by different pools of mortgages. A fund forgoes principal and interest paid during the roll period on the securities sold in a dollar roll, but the fund is compensated by the difference between the current sales price and the price for the future purchase as well as by any interest earned on the proceeds of the securities sold. A fund could also be compensated through receipt of fee income. The fund intends to enter into dollar rolls only with government securities dealers recognized by the Federal Reserve Board, or with member banks of the Federal Reserve. A fund will not treat dollar rolls as being subject to its borrowing or senior securities restrictions. In addition to the general risks involved in leveraging, dollar rolls are subject to the same risks as repurchase and reverse repurchase agreements, which are discussed below.

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INVESTMENTS IN THE REAL ESTATE INDUSTRY AND REAL ESTATE INVESTMENT TRUSTS (“REITS”)

REITs are pooled investment vehicles which invest primarily in income producing real estate, or real estate related loans or interests. REITs are generally classified as equity REITs, mortgage REITs, or hybrid REITs.

Equity REITs invest the majority of their assets directly in real property and derive income primarily from the collection of rents. Equity REITs can also realize capital gains by selling properties that have appreciated in value. Mortgage REITs invest the majority of their assets in real estate mortgages and derive income from the collection of interest payments. Hybrid REITs invest their assets in both real property and mortgages. REITs are not taxed on income distributed to policyowners provided they comply with several requirements of the Code.

Investments in the real estate industry are subject to risks associated with direct investment in real estate. Such risks include, but are not limited to: declining real estate values; risks related to general and local economic conditions; over-building; increased competition for assets in local and regional markets; changes in zoning laws; difficulties in completing construction; changes in real estate value and property taxes; increases in operating expenses or interest rates; changes in neighborhood values or the appeal of properties to tenants; insufficient levels of occupancy; and inadequate rents to cover operating expenses. The performance of securities issued by companies in the real estate industry also may be affected by management of insurance risks, adequacy of financing available in capital markets, the competence of management, changes in applicable laws and governmental regulations (including taxes) and social and economic trends.

REITs also may subject a portfolio to certain risks associated with the direct ownership of real estate. As described above, these risks include, among others: possible declines in the value of real estate; possible lack of availability of mortgage funds; extended vacancies of properties; risks related to general and local economic conditions; overbuilding; increases in competition, property taxes and operating expenses; changes in zoning laws; costs resulting from the clean-up of, liability to third parties for or damages resulting from, environmental problems, or casualty or condemnation losses; uninsured damages from floods, earthquakes or other natural disasters; limitations on and variations in rents; and changes in interest rates.

Investing in REITs involves certain unique risks, in addition to those risks associated with investing in the real estate industry in general. Equity REITs may be affected by changes in the value of the underlying property owned by the REITs, while mortgage REITs may be affected by the quality of any credit extended. REITs are dependent upon management skills, are not diversified, and are subject to risks associated with heavy cash flow dependency, potential default by borrowers, self-liquidation and the possibilities of failing to qualify for the exemption from tax for distributed income under the Code. REITs whose underlying assets are concentrated in properties used by a particular industry, such as health care, are also subject to industry related risks.

REITs (especially mortgage REITs) are also subject to interest rate risks. When interest rates decline, the value of a REIT’s investment in fixed rate obligations can be expected to rise. Conversely, when interest rates rise, the value of a REIT’s investment in fixed rate obligations can be expected to decline. If the REIT invests in adjustable rate mortgage loans the interest rates on which are reset periodically, yields on a REIT’s investments in such loans will gradually align themselves to reflect changes in market interest rates. This causes the value of such investments to fluctuate less dramatically in response to interest rate fluctuations than would investments in fixed rate obligations. REITs may have limited financial resources, may trade less frequently and in a limited volume and may be subject to more abrupt or erratic price movements than larger company securities. Historically, REITs have been more volatile in price than the larger capitalization stocks included in the S&P 500 Index.

MORTGAGE-RELATED SECURITIES

The funds may invest in mortgage-related securities issued or guaranteed by the U.S. government, its agencies and instrumentalities, and by private issuers entities, provided, however, that to the extent that a fund purchases mortgage-related securities from such issuers which may, solely for purposes of the 1940 Act, be deemed to be investment companies, the fund’s investment in such securities will be subject to the limitations on its investment in investment company securities. In the case of privately-issued mortgage-related and asset-backed securities, the funds take the position that such instruments do not represent interests in any particular industry or group of industries.

Mortgage-related securities in which the funds may invest represent pools of mortgage loans assembled for sale to investors by various governmental agencies such as the Government National Mortgage Association (“GNMA”) and government-related organizations such as the Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”), as well as by nongovernmental issuers such as commercial banks, savings and loan institutions, mortgage bankers, other private issuers, and private mortgage insurance companies. Although certain mortgage-related securities are guaranteed by a third party or otherwise similarly secured, the market value of the security, which may fluctuate, is not so secured. If a fund purchases a mortgage-related security at a premium, that portion may be lost if there is a decline in the market value of the security whether resulting from changes in interest rates or prepayments in the underlying mortgage collateral. As with other interest-bearing securities, the prices of such securities are inversely affected by changes in interest rates. However, though the value of a mortgage-related security may decline when interest rates rise, the converse is not necessarily true, since in periods of declining interest rates the mortgages underlying the securities are prone to prepayment, thereby shortening the average life of the security and shortening the period of time over which income at the higher rate is received. When interest rates are rising, though, the rate of prepayment tends to decrease, thereby lengthening the period of time over which income at the lower rate is received. A fund’s yield may be affected by reinvestment of prepayments at higher or lower rates than the original investment. For these and other reasons, a mortgage-related security’s average maturity may be shortened or lengthened as a result of interest rate fluctuations; and, therefore, it is not possible to predict accurately the security’s return. In addition, regular payments received in respect of mortgage-related securities include both interest and principal. No assurance can be given as to the return a fund will receive when these amounts are reinvested. The U.S. government has provided recent financial support to FNMA and FHLMC, but there can be no assurances that it will support these or other government-sponsored entities in the future.

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There are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the securities that they issue. Mortgage-related securities issued by GNMA include GNMA Mortgage Pass-Through Certificates (also known as “Ginnie Maes”) which are guaranteed as to the timely payment of principal and interest by GNMA and such guarantee is backed by the full faith and credit of the United States. GNMA is a wholly owned U.S. Government corporation within the Department of Housing and Urban Development. GNMA certificates also are supported by the authority of GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee. Mortgage-related securities issued by FNMA include FNMA Guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”) which are solely the obligations of FNMA and are not backed by or entitled to the full faith and credit of the United States. FNMA is a government-sponsored organization owned entirely by private stockholders. Fannie Maes are guaranteed as to the timely payment of the principal and interest by FNMA. Mortgage-related securities issued by FHLMC include FHLMC Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). FHLMC is a corporate instrumentality of the United States, created pursuant to an Act of Congress, which is owned entirely by Federal Home Loan Banks. Freddie Macs are not guaranteed by the United States or by any Federal Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank. Freddie Macs entitle the holder to the timely payment of interest, which is guaranteed by FHLMC. FHLMC guarantees either ultimate collection or the timely payment of all principal payments on the underlying mortgage loans. When FHLMC does not guarantee timely payment of principal, FHLMC may remit the amount due on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but in no event later than one year after it becomes payable.

The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to a fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. If mortgage-backed securities or asset-backed securities are bought at a discount, however, both scheduled payments of principal and unscheduled prepayments will increase current and total returns and will accelerate the recognition of income which, when distributed to shareholders, will be taxable as ordinary income.

Unlike mortgage-backed securities issued or guaranteed by the U.S. government or one of its sponsored entities, mortgage-backed securities issued by private issuers do not have a government or government-sponsored entity guarantee, but may have credit enhancement provided by external entities such as banks or financial institutions or achieved through the structuring of the transaction itself. Examples of such credit support arising out of the structure of the transaction include the issue of senior and subordinated securities (e.g., the issuance of securities by a special purpose vehicles in multiple classes or “tranches,” with one or more classes being senior to other subordinated classes as to the payment of principal and interest, with the result that defaults on the underlying mortgage loans are borne first by the holders of the subordinated class); creation of “reserve funds” (in which case cash or investments, sometimes funded from a portion of the payments on the underlying mortgage loans, are held in reserve against future losses); and “over-collateralization” (in which case the scheduled payments on, or the principal amount of, the underlying mortgage loans exceeds that required to make payment of the securities and pay any servicing or other fees). However, there can be no guarantee that credit enhancements, if any, will be sufficient to prevent losses in the event of defaults on the underlying mortgage loans.

If a fund purchases subordinated mortgage-backed securities, the payments of principal and interest on the fund’s subordinated securities generally will be made only after payments are made to the holders of securities senior to the fund’s securities. Therefore, if there are defaults on the underlying mortgage loans, a fund will be less likely to receive payments of principal and interest, and will be more likely to suffer a loss. Privately issued mortgage-backed securities are not traded on an exchange and there may be a limited market for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors. Without an active trading market, mortgage-backed securities held in a fund’s portfolio may be particularly difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans.

In addition, mortgage-backed securities that are issued by private issuers are not subject to the underwriting requirements for the underlying mortgages that are applicable to those mortgage-backed securities that have a government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage-backed securities may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or government-sponsored mortgage-backed securities and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon rates and maturities of the underlying mortgage loans in a private-label mortgage-backed securities pool may vary to a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments on their loans. For these reasons, the loans underlying these securities have had in many cases higher default rates than those loans that meet government underwriting requirements. See “Income-Producing Securities, Recent Market Events.”

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The risk of non-payment is greater for mortgage-backed securities that are backed by mortgage pools that contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan repayments may include a general economic turn-down, high unemployment, a general slowdown in the real estate market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage payments by holders of adjustable rate mortgages.

Certain funds may invest in Collateralized Mortgage Obligations (“CMOs”) residuals and stripped mortgage-backed securities (“SMBS”). CMO residuals are mortgage securities issued by agencies or instrumentalities of the U.S. government or by private originators of, or investors in, mortgage loans, including savings and loan associations, homebuilders, mortgage banks, commercial banks, investment banks and special purpose entities of the foregoing.

The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make required payments of principal and interest on the CMOs and second to pay the related administrative expenses of the issuer. The residual in a CMO structure generally represents the interest in any excess cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the mortgage assets. In particular, the yield to maturity on CMO residuals is extremely sensitive to prepayments on the related underlying mortgage assets, in the same manner as an interest-only (“IO”) class of stripped mortgage-backed securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which interest rate adjustments are based. As described below with respect to stripped mortgage-backed securities, in certain circumstances a fund may fail to recoup fully its initial investment in a CMO residual.

CMO residuals are generally purchased and sold by institutional investors through several investment banking firms acting as brokers or dealers. The CMO residual market has only very recently developed, and CMO residuals currently may not have the liquidity of other more established securities trading in other markets. Transactions in CMO residuals are generally completed only after careful review of the characteristics of the securities in question. In addition, CMO residuals may, or pursuant to an exemption therefrom, may not have been registered under the 1933 Act. CMO residuals, whether or not registered under the 1933 Act, may be subject to certain restrictions on transferability, and may be deemed “illiquid” and subject to a fund’s limitations on investment in illiquid securities.

SMBS are derivative multi-class mortgage securities. SMBS may be issued by agencies or instrumentalities of the U.S. Government, or by private originators of, or investors in, mortgage loans, including savings and loan associations, mortgage banks, commercial banks, investment banks and special purpose entities of the foregoing.

SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. A common type of SMBS will have one class receiving some of the interest and most of the principal from the mortgage assets, while the other class will receive most of the interest and the remainder of the principal. In the most extreme case, one class will receive all of the interest (the “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). The yield to maturity on an IO class is extremely sensitive to the rate of principal payments (including pre-payments) on the related underlying mortgage assets, and a rapid rate of principal payments may have a material adverse effect on a fund’s yield to maturity from these securities. If the underlying mortgage assets experience greater than anticipated prepayments of principal, a fund may fail to recoup some or all of its initial investment in these securities even if the security is in one of the highest rating categories.

Although SMBS are purchased and sold by institutional investors through several investment banking firms acting as brokers or dealers, these securities were only recently developed. As a result, established trading markets have not yet developed and, accordingly, these securities may be deemed “illiquid” and subject to a fund’s limitations on investment in illiquid securities.

ASSET-BACKED SECURITIES

An asset-backed security represents an interest in a pool of assets such as receivables from credit card loans, automobile loans and other trade receivables. Changes in the market’s perception of the asset backing the security, the creditworthiness of the servicing agent for the loan pool, the originator of the loans, or the financial institution providing any credit enhancement, will all affect the value of an asset-backed security, as will the exhaustion of any credit enhancement. The risks of investing in asset-backed securities ultimately depend upon the payment of the consumer loans by the individual borrowers. In its capacity as purchaser of an asset-backed security, a fund would generally have no recourse to the entity that originated the loans in the event of default by the borrower. Additionally, in the same manner as described above under “Mortgage-Related Securities” with respect to prepayment of a pool of mortgage loans underlying mortgage-related securities, the loans underlying asset-backed securities are subject to prepayments, which may shorten the weighted average life of such securities and may lower their return.

A fund may purchase commercial paper, including asset-backed commercial paper (“ABCP”) that is issued by structured investment vehicles or other conduits. These conduits may be sponsored by mortgage companies, investment banking firms, finance companies, hedge funds, private equity firms and special purpose finance entities. ABCP typically refers to a debt security with an original term to maturity of up to 270 days, the payment of which is supported by cash flows from underlying assets, or one or more liquidity or credit support providers, or both. Assets backing ABCP, which may be included in revolving pools of assets with large numbers of obligors, include credit card, car loan and other consumer receivables and home or commercial mortgages, including subprime mortgages. The repayment of ABCP issued by a conduit depends primarily on the cash collections received from the conduit’s underlying asset portfolio and the conduit’s ability to issue new ABCP. Therefore, there could be losses to a fund investing in ABCP in the event of credit or market value deterioration in the conduit’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset

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interests and the repayment obligations of maturing ABCP, or the conduit’s inability to issue new ABCP. To protect investors from these risks, ABCP programs may be structured with various protections, such as credit enhancement, liquidity support, and commercial paper stop-issuance and wind-down triggers. However there can be no guarantee that these protections will be sufficient to prevent losses to investors in ABCP.

Some ABCP programs provide for an extension of the maturity date of the ABCP if, on the related maturity date, the conduit is unable to access sufficient liquidity through the issue of additional ABCP. This may delay the sale of the underlying collateral and a fund may incur a loss if the value of the collateral deteriorates during the extension period. Alternatively, if collateral for ABCP commercial paper deteriorates in value, the collateral may be required to be sold at inopportune times or at prices insufficient to repay the principal and interest on the ABCP. ABCP programs may provide for the issuance of subordinated notes as an additional form of credit enhancement. The subordinated notes are typically of a lower credit quality and have a higher risk of default. A fund purchasing these subordinated notes will therefore have a higher likelihood of loss than investors in the senior notes.

Asset-backed securities are relatively new and untested instruments and may be subject to greater risk of default during periods of economic downturn than other securities which could result in possible losses to a fund. In addition, the secondary market for asset-backed securities may not be as liquid as the market for other securities which may result in a fund’s experiencing difficulty in valuing asset-backed securities.

Asset-backed securities may present certain risks not relevant to mortgage-backed securities. Assets underlying asset-backed securities such as credit card receivables are generally unsecured, and debtors are entitled to the protection of various state and federal consumer protection laws, some of which provide a right of set-off that may reduce the balance owed.

INCOME-PRODUCING SECURITIES

Certain funds focus their investments in income-producing securities.

Recent market events. The fixed-income markets are experiencing a period of extreme volatility which has negatively impacted market liquidity conditions. Initially, the concerns on the part of market participants were focused on the subprime segment of the mortgage-backed securities market. However, these concerns have since expanded to include a broad range of mortgage-and asset-backed and other fixed income securities, including those rated investment grade, the U.S. and international credit and interbank money markets generally, and a wide range of financial institutions and markets, asset classes and sectors. As a result, fixed income instruments are experiencing liquidity issues, increased price volatility, credit downgrades, and increased likelihood of default. Securities that are less liquid are more difficult to value and may be hard to dispose of. Domestic and international equity markets have also been experiencing heightened volatility and turmoil, with issuers that have exposure to the real estate, mortgage and credit markets particularly affected. During times of market turmoil, investors tend to look to the safety of securities issued or backed by the U.S. Treasury, causing the prices of these securities to rise, and the yield to decline. These events and the continuing market upheavals may have an adverse effect on the funds.

Certain funds will purchase defaulted securities only when their respective sub-advisers believe, based upon analysis of the financial condition, results of operations and economic outlook of an issuer, that there is potential for resumption of income payments and that the securities offer an unusual opportunity for capital appreciation. Notwithstanding the sub-adviser’s belief as to the resumption of income payments, however, the purchase of any security on which payment of interest or dividends is suspended involves a high degree of risk. Such risk includes, among other things, the following:

Financial and Market Risks. Investments in securities that are in default involve a high degree of financial and market risks that can result in substantial, or at times even total, losses. Issuers of defaulted securities may have substantial capital needs and may become involved in bankruptcy or reorganization proceedings. Among the problems involved in investments in such issuers is the fact that it may be difficult to obtain information about the condition of such issuers. The market prices of such securities also are subject to abrupt and erratic movements and above average price volatility, and the spread between the bid and asked prices of such securities may be greater than normally expected.

Disposition of Fund Securities. The funds generally intend to purchase securities for which the sub-adviser expects an active market to be maintained. Defaulted securities may be less actively traded than other securities making it more difficult to dispose of substantial holdings of such securities at prevailing market prices. The funds will limit holdings of any such securities to amounts that the sub-adviser believes could be readily sold, and its holdings of such securities would, in any event, be limited so as not to limit the funds’ ability to readily dispose of securities to meet redemptions.

Other. Defaulted securities require active monitoring and may, at times, require participation in bankruptcy or receivership proceedings on behalf of the funds.

Other types of income-producing securities that the funds may purchase include, but are not limited to, the following:

Variable and Floating Rate Obligations. These types of securities are relatively long-term instruments that often carry demand features permitting the holder to demand payment of principal at any time or at specified intervals prior to maturity.

Standby Commitments. These instruments, which are similar to a put, give a fund the option to obligate a broker, dealer or bank to repurchase a security held by a fund at a specified price.

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Tender Option Bonds. Tender option bonds are relatively long-term bonds that are coupled with the agreement of a third party (such as a broker, dealer or bank) to grant the holders of such securities the option to tender the securities to the institution at periodic intervals.

The funds will purchase instruments with demand features, standby commitments and tender option bonds primarily for the purpose of increasing the liquidity of their portfolios.

These investments are subject to credit risk and market risk. Credit risk relates to the party’s ability to make payment upon demand; market risk relates to the fact that the value of the security will be impacted by the rise and fall of interest rates and other market events. Because a fund may invest in securities backed by banks and other financial institutions, changes in the credit quality of these institutions could cause losses to the fund and affect its share price.

In the event that a security is rated by different agencies and receives different ratings from these agencies, unless a fund’s prospectus provides otherwise, a fund will treat the security as being rated in the highest rating category received from an agency. Credit rating criteria is applied at the time the fund purchases a security and the fund may choose not to sell securities that are downgraded below investment grade after their purchases. A sub-adviser in its reasonable judgment will determine what rating to assign to unrated securities.

Certain funds may invest in distressed securities. Distressed debt securities are debt securities that are purchased in the secondary market and are the subject of bankruptcy proceedings or otherwise in default as to the repayment of principal and/or interest at the time of acquisition by a fund or are rated in the lower rating categories (Ca or lower by Moody’s and CC or lower by S&P) or which, if unrated, are in the judgment of a sub-adviser of equivalent quality. Distressed securities are speculative and involve substantial risks. Generally, a fund will invest in distressed securities when the sub-adviser believes they offer significant potential for higher returns or can be exchanged for other securities that offer this potential. However, there can be no assurance that a fund will achieve these returns or that the issuer will make an exchange offer or adopt a plan of reorganization. A fund will generally not receive interest payments on the distressed securities and may incur costs to protect its investment. In addition, distressed securities involve the substantial risk that principal will not be repaid. Distressed securities and any securities received in an exchange for such securities may be subject to restrictions on resale.

HIGH-YIELD/HIGH-RISK BONDS

High-yield/high-risk bonds, below-investment-grade securities (commonly known as “junk bonds”) involve significant credit and liquidity concerns and fluctuating yields, and are not suitable for short-term investing. Higher yields are ordinarily available on fixed-income securities which are unrated or are rated in the lower rating categories of recognized rating services such as Moody’s and S&P, but also are predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal in accordance with the terms of the obligations.

Valuation risks. Lower rated bonds also involve the risk that the issuer will not make interest or principal payments when due. In the event of an unanticipated default, a fund owning such bonds would experience a reduction in its income, and could expect a decline in the market value of the securities so affected. Such funds, furthermore, may incur additional costs in seeking the recovery of the defaulted securities. More careful analysis of the financial condition of each issuer of lower-rated securities is therefore necessary. During an economic downturn or substantial period of rising interest rates, highly leveraged issuers may experience financial stress which would adversely affect their ability to service their principal and interest payment obligations, to meet projected business goals and to obtain additional financing.

The market prices of lower-grade securities are generally less sensitive to interest rate changes than higher-rated investments, but more sensitive to adverse economic or political changes or individual developments specific to the issuer. Periods of economic or political uncertainty and change can be expected to result in volatility of the prices of these securities. Past experience with high-yield securities in a prolonged economic downturn may not provide an accurate indication of future performance during such periods.

Liquidity risks. Lower-rated securities also may have less liquid markets than higher-rated securities, and their liquidity as well as their value may be more severely affected by adverse economic conditions. Adverse publicity and investor perceptions as well as new or proposed laws may also have a greater negative impact on the market for lower rated bonds.

Unrated securities are not necessarily of lower credit quality than rated securities, but the markets for lower rated and nonrated securities are more limited than those in which higher-rated securities are traded. The existence of limited markets may make it more difficult for a fund to obtain accurate market quotations for purposes of valuing its securities and calculating its net asset value. Moreover, the lack of a liquid trading market may restrict the availability of securities for a fund to purchase and may also have the effect of limiting the ability of a fund to sell securities at their fair value either to meet redemption requests or to respond to changes in the economy or the financial markets. In addition, an economic downturn or increase in interest rates is likely to have a greater negative effect on: (i) the market for lower-rated and nonrated securities; (ii) the value of high-yield debt securities held by a fund; (iii) the new asset value of a fund holding such securities; and (iv) the ability of the bonds’ issuers to repay principal and interest, meet projected business goals and obtain additional financing than on higher-rated securities.

Additional risks of high-yield/high-risk bonds. Lower rated debt obligations also present risks based on payment expectations. If an issuer calls the obligation for redemption, a fund may have to replace the security with a lower yielding security, resulting in a decreased return for investors. Also, the principal value of bonds moves inversely with movements in interest rates; in the event of

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rising interest rates, the value of the securities held by a fund may decline more than a portfolio consisting of higher rated securities. If a fund experiences unexpected net redemptions, it may be forced to sell its higher rated bonds, resulting in a decline in the overall credit quality of the securities held by the fund and increasing the exposure of the fund to the risks of lower rated securities.

Subsequent to its purchase by a fund, an issue of securities may cease to be rated or its rating may be reduced below the minimum required for purchase by the fund. Neither event will require sale of these securities by the fund, but a sub-adviser will consider the event in determining whether a fund should continue to hold the security.

LENDING OF FUND SECURITIES

The funds, from time to time, may lend portfolio securities to broker-dealers, banks or institutional borrowers of securities. In accordance with guidelines from the SEC and its staff, a fund must receive at least 102% collateral (generally 102% for domestic securities and 105% for international securities), in the form of cash or U.S. government securities. This collateral must be valued daily; and should the market value of the loaned securities increase, the borrower must furnish additional collateral to the lender. During the time portfolio securities are on loan, the borrower pays the lender dividends or interest paid on such securities. Loans are subject to termination by the lender or the borrower at any time. While the funds do not have the right to vote securities on loan, each intends to regain the right to vote if that is considered important with respect to the investment. In the event the borrower defaults on its obligation to a fund, it could experience delays in recovering its securities, possible capital losses and even loss of rights in the collateral should the borrower fail financially. The funds will only enter into loan arrangements with broker-dealers, banks or other institutions determined to be creditworthy under guidelines that may be established by the Board of Trustees. At the termination of a loan transaction, a fund has the obligation to return cash or collateral delivered by the borrower. A fund may experience losses on the collateral and may be required to liquidate other investments at inopportune times in order to return amounts to the borrower.

ILLIQUID AND RESTRICTED/144A SECURITIES

Subject to its investment restrictions and SEC guidance, a fund may invest a certain percentage of its net assets in illiquid securities (i.e., securities that are not readily marketable), as discussed above under “Non-Fundamental Policies”.

Restricted securities are securities subject to legal or contractual restrictions on their resale, such as private placements. Such restrictions might prevent the sale of restricted securities at a time when the sale would otherwise be desirable. Securities sold through private placements are not registered under the 1933 Act, as amended, and may not be subject to the disclosure and other investor protection requirements that would be applicable if the sale of securities were so registered.

Except where provided otherwise under “Non-Fundamental Policies,” to the extent required by applicable law and SEC guidance, no securities for which there is not a readily available market (“illiquid securities”) will be acquired by a fund if such acquisition would cause the aggregate value of illiquid securities to exceed 15% (10% with respect to Transamerica High Yield Bond and Transamerica Money Market) of the fund’s net assets. An illiquid security is any security which may not be sold or disposed of in the ordinary course of business within seven days at approximately the value at which a fund has valued the security. Illiquid securities may be difficult to value, and a fund may have difficulty disposing of such securities promptly.

In recent years, a large institutional market has developed for certain securities that are not registered under the 1933 Act. Institutional investors generally will not seek to sell these instruments to the general public, but instead will often depend on an efficient institutional market in which such unregistered securities can readily be resold or on an issuer’s ability to honor a demand for repayment. Therefore, the fact that there are contractual or legal restrictions on resale to the general public or certain institutions is not dispositive of the liquidity of such investments.

Rule 144A under the 1933 Act established a “safe harbor” from the registration requirements of the 1933 Act for resales of certain securities to qualified institutional buyers. Institutional markets for restricted securities that might develop as a result of Rule 144A could provide both readily ascertainable values for restricted securities and the ability to liquidate an investment in order to satisfy share redemption orders. An insufficient number of qualified institutional buyers interested in purchasing a Rule 144A-eligible security held by a portfolio could, however, adversely affect the marketability of such portfolio security and the portfolio might be unable to dispose of such security promptly or at reasonable prices.

The funds’ Board of Trustees has authorized each fund’s sub-adviser to make liquidity determinations with respect to Rule 144A securities in accordance with the guidelines established by the Board of Trustees. Under the guidelines which may be amended from time to time, the fund’s sub-adviser generally will consider the following factors in determining whether a Rule 144A security is liquid: 1) the frequency of trades and quoted prices for the security; 2) the number of dealers willing to purchase or sell the security and the number of other potential purchasers; 3) the willingness of dealers to undertake to make a market in the security; 4) the nature of the marketplace trades, including the time needed to dispose of the security, the method of soliciting offers and the mechanics of the transfer; 5) the likelihood that the security’s marketability will be maintained throughout the anticipated holding period; and/or 6) other factors deemed appropriate. The sale of illiquid securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the OTC markets. A fund may be restricted in its ability to sell such securities at a time when a fund’s sub-adviser deems it advisable to do so. In addition, in order to meet redemption requests, a fund may have to sell other assets, rather than such illiquid securities, at a time that is not advantageous.

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MUNICIPAL OBLIGATIONS

Municipal securities generally include debt obligations (bonds, notes or commercial paper) issued by or on behalf of any of the 50 states and their political subdivisions, agencies and public authorities, certain other governmental issuers (such as Puerto Rico, the U.S. Virgin Islands and Guam) or other qualifying issuers, participation or other interests in these securities and other related investments. The interest paid on municipal securities is excluded from gross income for regular federal income tax purposes, although it may be subject to federal alternative minimum tax. Municipal securities are issued to obtain funds for various public purposes, including the construction of a wide range of public facilities, such as airports, bridges, highways, housing, hospitals, mass transportation, schools, streets, water and sewer works, gas, and electric utilities. They may also be issued to refund outstanding obligations, to obtain funds for general operating expenses, or to obtain funds to loan to other public institutions and facilities and in anticipation of the receipt of revenue or the issuance of other obligations.

The funds may invest in various types of municipal obligations, including, without limitation, the following:

Municipal Bonds. Municipal bonds generally are classified as general obligation or revenue bonds. General obligation bonds are secured by the issuer’s pledge of its full faith, credit and unlimited taxing power for the payment of principal and interest. Revenue bonds are payable only from the revenues generated by a particular facility or class of facility, or in some cases from the proceeds of a special excise tax or specific revenue source.

Private Activity Bonds. Private activity bonds are issued by or on behalf of public authorities to provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing construction of privately operated industrial facilities, such as warehouse, office, plant and storage facilities and environmental and pollution control facilities. Such bonds are secured primarily by revenues derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a parent company or otherwise secured. Private activity bonds generally are not secured by a pledge of the taxing power of the issuer of such bonds. Therefore, repayment of such bonds generally depends on the revenue of a private entity. The continued ability of an entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by many factors, including the size of the entity, its capital structure, demand for its products or services, competition, general economic conditions, government regulation and the entity’s dependence on revenues for the operation of the particular facility being financed.

Interest income on certain types of private activity bonds issued after August 7, 1986 to finance non-governmental activities is a specific tax preference item for purposes of the federal individual and corporate alternative minimum tax (“AMT”). Individual and corporate shareholders may be subject to a federal AMT to the extent that a fund’s dividends are derived from interest on those bonds. Dividends derived from interest income on tax-exempt municipal obligations are a component of the “current earnings” adjustment item for purposes of the federal corporate AMT.

Industrial Development Bonds. Industrial development bonds (“IDBs”) are issued by public authorities to obtain funds to provide financing for privately-operated facilities for business and manufacturing, housing, sports, convention or trade show facilities, airport, mass transit, port and parking facilities, air or water pollution control facilities, and certain facilities for water supply, gas, electricity or sewerage or solid waste disposal. Although IDBs are issued by municipal authorities, the payment of principal and interest on IDBs is dependent solely on the ability of the user of the facilities financed by the bonds to meet its financial obligations and the pledge, if any, of the real and personal property being financed as security for such payments. IDBs are considered municipal securities if the interest paid is exempt from regular federal income tax. Interest earned on IDBs may be subject to the federal AMT.

Municipal Notes. Municipal notes are short-term debt obligations issued by municipalities which normally have a maturity at the time of issuance of six months to three years. Such notes include tax anticipation notes, bond anticipation notes, revenue anticipation notes and project notes. Notes sold in anticipation of collection of taxes, a bond sale or receipt of other revenues are normally obligations of the issuing municipality or agency.

Municipal Commercial Paper. Municipal commercial paper is short-term debt obligations issued by municipalities. Although done so infrequently, municipal commercial paper may be issued at a discount (sometimes referred to as Short-Term Discount Notes). These obligations are issued to meet seasonal working capital needs of a municipality or interim construction financing and are paid from a municipality’s general revenues or refinanced with long-term debt. Although the availability of municipal commercial paper has been limited, from time to time the amounts of such debt obligations offered have increased, and this increase may continue.

Participation Interests. A participation interest in municipal obligations (such as private activity bonds and municipal lease obligations) gives a fund an undivided interest in the municipal obligation in the proportion that the fund’s participation interest bears to the total principal amount of the municipal obligation. Participation interests in municipal obligations may be backed by an irrevocable letter of credit or guarantee of, or a right to put to, a bank (which may be the bank issuing the participation interest, a bank issuing a confirming letter of credit to that of the issuing bank, or a bank serving as agent of the issuing bank with respect to the possible repurchase of the participation interest) or insurance policy of an insurance company. The fund has the right to sell the participation interest back to the institution or draw on the letter of credit or insurance after a specified period of notice, for all or any part of the full principal amount of the fund’s participation in the security, plus accrued interest.

Issuers of participation interests will retain a service and letter of credit fee and a fee for providing the liquidity feature, in an amount equal to the excess of the interest paid on the instruments over the negotiated yield at which the participations were purchased on behalf of a fund. With respect to insurance, a fund will attempt to have the issuer of the participation interest bear the cost of the insurance, although a fund may also purchase insurance, in which case the cost of insurance will be an expense of the fund. Although

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participation interests may be sold, the fund intends to hold them until maturity, except under the circumstances stated above. Participation interests may include municipal lease obligations. Purchase of a participation interest may involve the risk that a fund will not be deemed to be the owner of the underlying municipal obligation for purposes of the ability to claim tax exemption of interest paid on that municipal obligation.

Variable Rate Obligations. The interest rate payable on a variable rate municipal obligation is adjusted either at predetermined periodic intervals or whenever there is a change in the market rate of interest upon which the interest rate payable is based. A variable rate obligation may include a demand feature pursuant to which a fund would have the right to demand prepayment of the principal amount of the obligation prior to its stated maturity. The issuer of the variable rate obligation may retain the right to prepay the principal amount prior to maturity.

Municipal Lease Obligations. Municipal lease obligations may take the form of a lease, an installment purchase or a conditional sales contract. Municipal lease obligations are issued by state and local governments and authorities to acquire land, equipment and facilities such as state and municipal vehicles, telecommunications and computer equipment, and other capital assets. Interest payments on qualifying municipal leases are exempt from federal income taxes. A fund may purchase these obligations directly, or they may purchase participation interests in such obligations. Municipal leases are generally subject to greater risks than general obligation or revenue bonds. State laws set forth requirements that states or municipalities must meet in order to issue municipal obligations; and such obligations may contain a covenant by the issuer to budget for, appropriate, and make payments due under the obligation. However, certain municipal lease obligations may contain “non-appropriation” clauses which provide that the issuer is not obligated to make payments on the obligation in future years unless funds have been appropriated for this purpose each year. Accordingly, such obligations are subject to “non-appropriation” risk. While municipal leases are secured by the underlying capital asset, it may be difficult to dispose of such assets in the event of non-appropriation or other default.

Residual Interest Bonds. The funds may invest in Residual Interest Bonds (sometimes referred to as inverse floaters) (“RIBs”), which brokers create by depositing a Municipal Bond in a trust. The trust in turn issues a variable rate security and RIBs. The interest rate on the short-term component is reset by an index or auction process normally every seven to 35 days, while the RIB holder receives the balance of the income from the underlying Municipal Bond less an auction fee. Therefore, rising short-term interest rates result in lower income for the RIB, and vice versa. An investment in RIBs typically will involve greater risk than an investment in a fixed rate bond. RIBs have interest rates that bear an inverse relationship to the interest rate on another security or the value of an index. Because increases in the interest rate on the other security or index reduce the residual interest paid on a RIB, the value of a RIB is generally more volatile than that of a fixed rate bond. RIBs have interest rate adjustment formulas that generally reduce or, in the extreme, eliminate the interest paid to a fund when short-term interest rates rise, and increase the interest paid to the funds when short-term interest rates fall. RIBs have varying degrees of liquidity that approximate the liquidity of the underlying bond(s), and the market price for these securities is volatile. RIBs can be very volatile and may be less liquid than other Municipal Bonds of comparable maturity. These securities will generally underperform the market of fixed rate bonds in a rising interest rate environment, but tend to outperform the market of fixed rate bonds when interest rates decline or remain relatively stable. Although volatile, RIBs typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality, coupon, call provisions and maturity. To the extent permitted by each fund’s investment objectives and general investment policies, a fund may invest in RIBs without limitation.

In a transaction in which a fund purchases a RIB from a trust, and the underlying Municipal Bond was held by the fund prior to being deposited into the trust, the fund treats the transaction as a secured borrowing for financial reporting purposes. As a result, the fund will incur a non-cash interest expense with respect to interest paid by the trust on the variable rate securities, and will recognize additional interest income in an amount directly corresponding to the non-cash interest expense. Therefore, the fund’s net asset value per share and performance are not affected by the non-cash interest expense. This accounting treatment does not apply to RIBs acquired by the funds where the funds did not previously own the underlying Municipal Bond.

Tax-exempt Commercial Paper. Tax-exempt commercial paper is a short-term obligation with a stated maturity of 270 days or less. It is issued by state and local governments or their agencies to finance seasonal working capital needs or as short term financing in anticipation of longer term financing. While tax-exempt commercial paper is intended to be repaid from general revenues or refinanced, it frequently is backed by a letter of credit, lending arrangement, note repurchase agreement or other credit facility agreement offered by a bank or financial institution.

Custodial Receipts and Certificates. Custodial receipts or certificates underwritten by securities dealers or banks evidence ownership of future interest payments, principal payments or both on certain municipal obligations. The underwriter of these certificates or receipts typically purchases municipal obligations and deposits the obligations in an irrevocable trust or custodial account with a custodian bank, which then issues receipts or certificates that evidence ownership of the periodic unmatured coupon payments and the final principal payment on the obligations. Although under the terms of a custodial receipt, a fund would be typically authorized to assert its rights directly against the issuer of the underlying obligation, a fund could be required to assert through the custodian bank those rights as may exist against the underlying issuer. Thus, in the event the underlying issuer fails to pay principal and/or interest when due, the fund may be subject to delays, expenses and risks that are greater than those that would have been involved if the fund had purchased a direct obligation of the issuer. In addition, in the event that the trust or custodial account in which the underlying security has been deposited is determined to be an association taxable as a corporation, instead of a non-taxable entity, the yield on the underlying security would be reduced in recognition of any taxes paid.

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Additional Risks Relating Particularly to Municipal Obligations. The Code imposes certain continuing requirements on issuers of tax-exempt bonds regarding the use, expenditure and investment of bond proceeds and the payment of rebates to the U.S. government. Failure by the issuer to comply after the issuance of tax-exempt bonds with certain of these requirements could cause interest on the bonds to become includable in gross income retroactive to the date of issuance.

From time to time, proposals have been introduced before Congress for the purpose of restricting or eliminating the federal income tax exemption for interest on municipal obligations, and similar proposals may be introduced in the future. In addition, the federal income tax exemption has been, and may in the future be, the subject of litigation. If one of these proposals were enacted, the availability of tax-exempt obligations for investment by a fund and the value of a fund’s investments would be affected.

Opinions relating to the validity of municipal obligations and to the exclusion of interest thereon from gross income for regular federal income tax purposes are rendered by bond counsel to the respective issuers at the time of issuance. A fund and their service providers will rely on such opinions and will not review the proceedings relating to the issuance of municipal obligations or the bases for such opinions.

Information about the financial condition of issuers of municipal obligations may be less available than about corporations whose securities are publicly traded.

A fund may invest in taxable municipal obligations. The market for taxable municipal obligations is relatively small, which may result in a lack of liquidity and in price volatility of those securities. Interest on taxable municipal obligations is includable in gross income for regular federal income tax purposes. While interest on taxable municipal obligations may be exempt from personal taxes imposed by the state within which the obligation is issued, such interest will nevertheless generally be subject to all other state and local income and franchise taxes.

LOANS

A fund may invest in certain commercial loans, generally known as “syndicated bank loans,” by acquiring participations or assignments in such loans. Such indebtedness may be secured or unsecured. Loan participations typically represent direct participation in a loan to a corporate borrower, and generally are offered by banks or other financial institutions or lending syndicates. A fund may participate in such syndications, or can buy part of a loan, becoming a lender. A fund’s investment in a loan participation typically will result in the fund having a contractual relationship only with the lender and not with the borrower. A fund will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing a participation, a fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any right of set-off against the borrower, and the fund may not directly benefit from any collateral supporting the loan in which it has purchased the participation. As a result, a fund may be subject to the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling a participation, a fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.

When a fund purchases a loan assignment from lenders, it will acquire direct rights against the borrowers on the loan. Because assignments are arranged through private negotiations between potential assignees and potential assignors, however, the rights and obligations acquired by a fund as the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender.

A fund may acquire loans of borrowers that are experiencing, or are more likely to experience, financial difficulty, including loans of borrowers that have filed for bankruptcy protection. Although loans in which a fund may invest generally will be secured by specific collateral, there can be no assurance that liquidation of such collateral would satisfy the borrower’s obligation in the event of nonpayment of scheduled interest or principal, or that such collateral could be readily liquidated. In the event of bankruptcy of a borrower, a fund could experience delays or limitations with respect to its ability to realize the benefits of the collateral securing a senior loan.

Because there is no liquid market for commercial loans, the funds anticipate that such securities could be sold only to a limited number of institutional investors. The lack of a liquid secondary market may have an adverse impact on the value of such securities and a fund’s ability to dispose of particular assignments or participations when necessary to meet redemptions of fund shares, to meet the fund’s liquidity needs or when necessary in response to a specific economic event, such as deterioration in the creditworthiness of the borrower. The lack of a liquid secondary market also may make it more difficult for a fund to assign a value to those securities for purposes of valuing the fund’s investments and calculating its net asset value.

Investments in loans through a direct assignment of the financial institution’s interests with respect to the loan may involve additional risks to a fund. For example, if a loan is foreclosed, a fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal theories of lender liability, a fund could be held liable as co-lender. It is unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive regulatory guidance, a fund relies on its sub-adviser’s research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the fund.

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COMMON STOCKS

Subject to its investment restrictions, a fund may invest in common stocks. Common stocks represent an ownership interest in the issuing company. Holders of common stocks are not creditors of the issuer, and in the event of the liquidation, common stocks are junior to the debt obligations and preferred stocks of an issuer. Hence, dividend payments on common stocks should be regarded as less secure than income payments on corporate debt securities. Transamerica Flexible Income will consider investment in income-producing common stocks if the yields of common stocks generally become competitive with the yields of other income securities.

EQUITY EQUIVALENTS

In addition to investing in common stocks, the funds may invest in other equity securities and equity equivalents, including securities that permit a fund to receive an equity interest in an issuer, the opportunity to acquire an equity interest in an issuer, or the opportunity to receive a return on its investment that permits the fund to benefit from the growth over time in the equity of an issuer. Examples of equity securities and equity equivalents include preferred stock, convertible preferred stock and convertible debt securities.

Preferred Stocks. Subject to a fund’s investment restrictions, a fund may purchase preferred stocks. Preferred stocks are securities which represent an ownership interest in a corporation and which give the owner a prior claim over common stock on the corporation’s earnings and assets, however preferred stocks are junior to the debt securities of the issuer in those same respects. Preferred stock generally pays quarterly dividends. Preferred stocks may differ in many of their provisions. Among the features that differentiate preferred stocks from one another are the dividend rights, which may be cumulative or non-cumulative and participating or non-participating, redemption provisions, and voting rights. Such features will establish the income return and may affect the prospects for capital appreciation or risks of capital loss.

The market prices of preferred stocks are subject to changes in interest rates and are more sensitive to changes in an issuer’s creditworthiness than are the prices of debt securities. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Under ordinary circumstances, preferred stock does not carry voting rights.

Convertible Securities. Subject to its investment restrictions, a fund may invest in debt securities convertible into or exchangeable for equity securities, or debt securities that carry with them the right to acquire equity securities, as evidenced by warrants attached to such securities or acquired as part of units of the securities. Although to a lesser extent than with fixed-income securities generally, the market value of convertible securities tends to decline as interest rates increase and, conversely, tends to increase as interest rates decline. In addition, because of the conversion feature, the market value of convertible securities tends to vary with fluctuations in the market value of the underlying common stocks and, therefore, also will react to variations in the general market for equity securities. A significant feature of convertible securities is that as the market price of the underlying common stock declines, convertible securities tend to trade increasingly on a yield basis, and so they may not experience market value declines to the same extent as the underlying common stock. When the market price of the underlying common stock increases, the prices of the convertible securities tend to rise as a reflection of the value of the underlying common stock. While no securities investments are without risk, investments in convertible securities generally entail less risk than investments in common stock of the same issuer.

As fixed-income securities, convertible securities tend to provide for a stream of income with generally higher yields than common stocks. Of course, like all fixed-income securities, there can be no assurance of current income because the issuers of the convertible securities may default on their obligations. Convertible securities normally pay less current income than securities without conversion features, but add the potential opportunity for capital appreciation from enhanced value for the equity securities into which they are convertible, and the concomitant risk of loss from declines in those values. A convertible security, in addition to providing fixed-income, offers the potential for capital appreciation through the conversion feature, which enables the holder to benefit from increases in the market price of the underlying common stock. However, there can be no assurance of capital appreciation.

Convertible securities generally are subordinated to other similar but non-convertible securities of the same issuer, although convertible bonds, as corporate debt obligations, enjoy seniority in right of payment to all equity securities, and convertible preferred stock is senior to common stock of the same issuer. Because of the subordination feature, however, convertible securities typically have lower ratings than similar non-convertible securities.

A fund will limit its holdings of convertible debt securities to those that, at the time of purchase, are rated at least B- by Standard and Poor’s Ratings Group (“S&P”) or B3 by Moody’s Investors Services, Inc. (“Moody’s”), or, if not rated by S&P or Moody’s, are of equivalent investment quality as determined by the sub-adviser. Except for certain funds, a fund’s investments in convertible debt securities and other high-yield, non-convertible debt securities rated below investment-grade will comprise less than 35% of the fund’s net assets. Debt securities rated below the four highest categories are not considered “investment-grade” obligations. These securities have speculative characteristics and present more credit risk than investment-grade obligations. Equity equivalents also may include securities whose value or return is derived from the value or return of a different security. Depositary receipts are an example of the type of derivative security in which the funds might invest.

Master Limited Partnerships. A fund may invest in Master Limited Partnership units, which have limited control and voting rights, similar to those of a limited partner. An MLP could be taxed, contrary to its intention, as a corporation, resulting in decreased returns. MLPs may, for tax purposes, affect the character of the gain and loss realized by a fund and affect the holding period of a fund’s assets.

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EVENT-LINKED BONDS

Certain funds may invest a portion of their assets in “event-linked bonds,” which are fixed-income securities for which the return of principal and payment of interest is contingent on the non-occurrence of a specific “trigger” event, such as a hurricane, earthquake, or other physical or weather-related phenomenon. Some event-linked bonds are commonly referred to as “catastrophe bonds.” If a trigger event occurs, a fund may lose a portion, or all, of its principal invested in the bond. Event-linked bonds often provide for an extension of maturity to process and audit loss claims where a trigger event has, or possibly has, occurred. An extension of maturity may increase volatility. Event-linked bonds may also expose a fund to certain unanticipated risks including credit risk, adverse regulatory or jurisdictional interpretations, and adverse tax consequences. Event-linked bonds may also be subject to liquidity risk.

COLLATERALIZED DEBT OBLIGATIONS

Certain funds may invest in collateralized debt obligations (“CDOs”), which include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly structured securities. CDOs, CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below-investment-grade fixed-income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. Although certain CDOs may receive credit enhancement in the form of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be present, and may fail to protect a fund against the risk of loss on default of the collateral. Certain CDOs may use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly. CDOs may charge management fees and administrative expenses, which are in addition to those of a fund.

For both CBOs and CLOs, the cashflows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the “equity” tranche which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Since it is partially protected from defaults, a senior tranche from a CBO trust or CLO trust typically have higher ratings and lower yields than their underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CBO or CLO securities as a class. Interest on certain tranches of a CDO may be paid in kind (paid in the form of obligations of the same type rather than cash), which involves continued exposure to default risk with respect to such payments.

The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which a fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus, are not registered under the securities laws. As a result, investments in CDOs may be characterized by the funds as illiquid securities, however an active dealer market may exist for CDOs allowing a CDO to qualify for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities discussed elsewhere in this SAI and the funds’ prospectuses (e.g., interest rate risk and default risk), CDOs carry additional risks including, but are not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) a fund may invest in CDOs that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results; and (v) the CDO’s manager may perform poorly.

REPURCHASE AGREEMENTS

Subject to its investment restrictions, a fund may enter into repurchase agreements. In a repurchase agreement, a fund purchases a security and simultaneously commits to resell that security to the seller at an agreed-upon price on an agreed-upon date within a number of days (usually not more than seven) from the date of purchase. The resale price reflects the purchase price plus an agreed-upon incremental amount which is unrelated to the coupon rate or maturity of the purchased security. A repurchase agreement involves the obligation of the seller to pay the agreed-upon price, which obligation is in effect secured by the value (at least equal to the amount of the agreed-upon resale price and marked-to-market daily) of the underlying security or collateral.

All repurchase agreements entered into by a fund shall be fully collateralized at all times during the period of the agreement in that the value of the underlying security shall be at least equal to an amount of the loan, including interest thereon, and the fund or its custodian shall have control of the collateral, which the sub-advisers believe will give the applicable fund a valid, perfected security interest in the collateral.

A fund may engage in a repurchase agreement with respect to any security in which it is authorized to invest. While it does not presently appear possible to eliminate all risks from these transactions (particularly the possibility of a decline in the market value of the underlying securities, as well as delays and costs to a fund in connection with bankruptcy proceedings), it is the policy of each fund to limit repurchase agreements to those parties whose creditworthiness has been reviewed and found satisfactory by the sub-adviser for that fund and approved by the Board of Trustees.

Repurchase agreements involve the risk that the seller will fail to repurchase the security, as agreed. In that case, a fund will bear the risk of market value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs are incurred. Repurchase agreements could involve certain risks in the event of default or insolvency of the other party, including possible delays or restrictions upon the fund’s ability to dispose of the underlying securities, the risk of a possible decline in the value of the underlying securities during the period in which the fund seeks to assert its right to them, the risk of incurring expenses associated with asserting those rights and the risk of losing all or part of the income from the agreement.

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REVERSE REPURCHASE AGREEMENTS AND OTHER BORROWINGS

A fund may engage in reverse repurchase agreements or other borrowing transactions as a means of raising cash to satisfy redemption requests or for other temporary or emergency purposes. A fund may also engage in reverse repurchase agreements or other borrowing transactions in order to reinvest the proceeds in other securities or instruments.

Subject to its investment restrictions, a fund may enter into reverse repurchase agreements. In a reverse repurchase agreement, a fund sells a portfolio instrument to another party, such as a bank or broker-dealer, in return for cash and agrees to repurchase the instrument at a particular price and time. While a reverse repurchase agreement is outstanding, a fund will segregate with its custodian cash and appropriate liquid assets with the funds’ custodian to cover its obligation under the agreement. A fund’s liquidity and ability to manage its assets might be affected when it sets aside cash or portfolio securities to cover such commitments.

The funds will enter into reverse repurchase agreements only with parties the investment sub-adviser for each fund deems creditworthy.

Reverse repurchase agreements may expose a fund to greater fluctuations in the value of its assets. When a fund reinvests the proceeds of a reverse repurchase agreement in other securities, any fluctuations in the market value of either the securities the fund is committed to repurchase from the other party or any securities in which the proceeds are invested would affect the market value of the fund’s assets. In addition, if a fund is not able to reinvest the proceeds of the agreement at a rate equal to or higher than the rate that it is obligated to pay under the reverse repurchase agreement, engaging in the agreement will lower the fund’s income.

Although a reverse repurchase agreement receives special treatment in the event of the bankruptcy or insolvency of one of the parties, there still may be delays and costs involved in a fund’s exercising its rights under the agreement.

Borrowing may make the value of an investment in a fund more volatile and increase the fund’s overall investment exposure. A fund may be required to liquidate portfolio securities at a time when it would be disadvantageous to do so in order to make payments with respect to any borrowing, which could affect the portfolio managers’ strategy and the ability of the fund to comply with certain provisions of the Internal Revenue Code of 1986, as amended (the “Code”) in order to provide pass-though tax treatment to shareholders. Interest on any borrowings will be a fund expense and will reduce the value of a fund’s shares.

PASS-THROUGH SECURITIES

Each fund may, in varying degrees, invest in various types of pass-through securities, such as mortgage-backed securities, asset-backed securities and participation interests, which are fully discussed in this SAI. A pass-through security is a share or certificate of interest in a pool of debt obligations that has been repackaged by an intermediary, such as a bank or broker-dealer. The purchaser receives an undivided interest in the underlying pool of securities. The issuers of the underlying securities make interest and principal payments to the intermediary, which are passed through to purchasers, such as the funds.

WARRANTS AND RIGHTS

Subject to its investment restrictions, a fund may invest in warrants and rights. A warrant is a type of security that entitles the holder to buy a proportionate amount of common stock at a specified price, usually higher than the market price at the time of issuance, for a period of years or to perpetuity. In contrast, rights, which also represent the right to buy common shares, normally have a subscription price lower than the current market value of the common stock and a life of two to four weeks.

Warrants and rights are subject to the same market risks as common stocks, but may be more volatile in price. An investment in warrants or rights may be considered speculative. In addition, the value of a warrant or right does not necessarily change with the value of the underlying securities and a warrant or right ceases to have value if it is not exercised prior to its expiration date.

COMMODITIES AND NATURAL RESOURCES

Commodities may include, among other things, oil, gas, timber, farm products, minerals, precious metals, for example, gold, silver, platinum, and palladium, and other natural resources. Certain funds may invest in companies (such as mining, dealing or transportation companies) with substantial exposure to, or instruments that result in exposure to, commodities markets. Commodities generally and particular commodities have, at times been subject to substantial price fluctuations over short periods of time and may be affected by unpredictable monetary and political policies such as currency devaluations or revaluations, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. The prices of commodities may be, however, less subject to local and company-specific factors than securities of individual companies. As a result, commodity prices may be more or less volatile in price than securities of companies engaged in commodity-related businesses. Investments in commodities can present concerns such as delivery, storage and maintenance, possible illiquidity, and the unavailability of accurate market valuations.

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TEMPORARY INVESTMENTS

At times a fund’s sub-advisers may judge that conditions in the securities markets make pursuing the fund’s typical investment strategy inconsistent with the best interest of its shareholders. At such times, a sub-adviser may temporarily use alternative strategies, primarily designed to reduce fluctuations in the value of the fund’s assets. In implementing these defensive strategies, a fund may invest without limit in securities that a sub-adviser believes present less risk to a fund, including equity securities, debt and fixed income securities, preferred stocks, U.S. government and agency obligations, cash or money market instruments, certificates of deposit, demand and time deposits, bankers’ acceptance or other securities a sub-adviser considers consistent with such defensive strategies, such as, but not limited to, options, futures, warrants or swaps. During periods in which such strategies are used, the duration of a fund may diverge from the duration range for that fund disclosed in its prospectus (if applicable). It is impossible to predict when, or for how long, a fund will use these alternative strategies. As a result of using these alternative strategies, a fund may not achieve its investment objective.

CERTAIN OTHER SECURITIES IN WHICH THE FUNDS MAY INVEST

Corporate Debt Securities. A fund may invest in corporate bonds, notes and debentures of long and short maturities and of various grades, including unrated securities. Corporate debt securities exist in great variety, differing from one another in quality, maturity, and call or other provisions. Lower-grade bonds, whether rated or unrated, usually offer higher interest income, but also carry increased risk of default. Corporate bonds may be secured or unsecured, senior to or subordinated to other debt of the issuer, and, occasionally, may be guaranteed by another entity. In addition, they may carry other features, such as those described under “Convertible Securities” and “Variable or Floating Rate Securities,” or have special features such as the right of the holder to shorten or lengthen the maturity of a given debt instrument, rights to purchase additional securities, rights to elect from among two or more currencies in which to receive interest or principal payments, or provisions permitting the holder to participate in earnings of the issuer or to participate in the value of some specified commodity, financial index, or other measure of value.

Commercial Paper. Commercial paper refers to short-term unsecured promissory notes issued by commercial and industrial corporations to finance their current operations. Commercial paper may be issued at a discount and redeemed at par, or issued at par with interest added at maturity. The interest or discount rate depends on general interest rates, the credit standing of the issuer, and the maturity of the note, and generally moves in tandem with rates on large CDs and Treasury bills. An established secondary market exists for commercial paper, particularly that of stronger issuers which are rated by Moody’s and S&P. Investments in commercial paper are subject to the risks that general interest rates will rise, that the credit standing and outside rating of the issuer will fall, or that the secondary market in the issuer’s notes will become too limited to permit their liquidation at a reasonable price.

International Agency Obligations. A fund may invest in bonds, notes or Eurobonds of international agencies. Examples are securities issued by the Asian Development Bank, the European Economic Community, and the European Investment Bank. The funds may also purchase obligations of the International Bank for Reconstruction and Development which, while technically not a U.S. government agency or instrumentality, has the right to borrow from the participating countries, including the United States.

Bank Obligations or Savings and Loan Obligations. Subject to its investment restrictions, a fund may invest in all types of bank obligations, including certificates of deposit, bankers’ acceptances and other debt obligations of commercial banks and certificates of deposit and other debt obligations of savings and loan associations (“S&Ls”). Certificates of deposit are receipts from a bank or an S&L for funds deposited for a specified period of time at a specified rate of return. Bankers’ acceptances are time drafts drawn on commercial banks by borrowers, usually in connection with international commercial transactions. These instruments may be issued by institutions of any size, may be of any maturity, and may be insured or uninsured.

U.S. commercial banks organized under federal law are supervised and examined by the Comptroller of the Currency and are required to be members of the Federal Reserve System and to be insured by the Federal Deposit Insurance Corporation (the “FDIC”). U.S. banks organized under state law are supervised and examined by state banking authorities, but are members of the Federal Reserve System only if they elect to join. Most state banks are insured by the FDIC (although such insurance may not be of material benefit to the fund, depending upon the principal amount of CDs of each held by a fund) and are subject to federal examination and to a substantial body of federal law and regulation. As a result of federal and state laws and regulations, U.S. branches of U.S. banks are, among other things, generally required to maintain specified levels of reserves, and are subject to other supervision and regulation designed to promote financial soundness.

Obligations of foreign branches of U.S. banks, such as CDs and time deposits, may be general obligations of the parent bank in addition to the issuing branch, or may be limited by the terms of a specific obligation and governmental regulation. Such obligations are subject to different risks than are those of U.S. banks or U.S. branches of foreign banks. These risks include foreign economic and political developments, foreign governmental restrictions that may adversely affect payment of principal and interest on the obligations, foreign exchange controls and foreign withholding and other taxes on interest income. Foreign branches of U.S. banks and foreign branches of foreign banks are not necessarily subject to the same or similar regulatory requirements that apply to U.S. banks, such as mandatory reserve requirements, loan limitations and accounting, auditing and financial recordkeeping requirements. In addition, less information may be publicly available about a foreign branch of a U.S. bank or about a foreign bank than about a U.S. bank.

Obligations of U.S. branches of foreign banks may be general obligations of the parent bank, in addition to the issuing branch, or may be limited by the terms of a specific obligation and by federal and state regulation as well as governmental action in the country in which the foreign bank has its head office. A U.S. branch of a foreign bank with assets in excess of $1 billion may or may not be subject to reserve requirements imposed by the Federal Reserve System or by the state in which the branch is located if the branch is licensed in that state. In addition, branches licensed by the Comptroller of the Currency and branches licensed by certain states (“State Branches”) may or may not be required to: (a) pledge to the regulator, by depositing assets with a designated bank within the state; and (b)

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maintain assets within the state in an amount equal to a specified percentage of the aggregate amount of liabilities of the foreign bank payable at or through all of its agencies or branches within the state. The deposits of state branches may not necessarily be insured by the FDIC. In addition, there may be less publicly available information about a U.S. branch of a foreign bank than about a U.S. bank. A fund may purchase obligations, or all or a portion of a package of obligations, of smaller institutions that are federally insured, provided the obligation of any single institution does not exceed the then current federal insurance coverage of the obligation.

The quality of bank or savings and loan obligations may be affected by such factors as: (a) location — the strength of the local economy will often affect financial institutions in the region; (b) asset mix — institutions with substantial loans in a troubled industry may be weakened by those loans; and (c) amount of equity capital — under-capitalized financial institutions are more vulnerable when loan losses are suffered. The sub-adviser will evaluate these and other factors affecting the quality of bank and savings and loan obligations purchased by a fund, but the fund is not restricted to obligations or institutions that satisfy specified quality criteria.

Variable- or Floating-Rate Securities. Subject to its investment restrictions, a fund may purchase variable rate securities that provide for automatic establishment of a new interest rate at fixed intervals (e.g., daily, monthly, semi-annually, etc.). Floating rate securities generally provide for automatic adjustment of the interest rate whenever some specified interest rate index changes. The interest rate on variable and floating-rate securities is ordinarily determined by reference to, or is a percentage of, a bank’s prime rate, the 90-day U.S. Treasury bill rate, the rate of return on commercial paper or bank certificates of deposit, an index of short-term interest rates, or some other objective measure. These securities generally are structured as loans. See the discussion of “Loans” in this SAI.

PORTFOLIO TURNOVER RATE

Changes may be made in a fund’s portfolio consistent with the investment objective and policies of the fund whenever such changes are believed to be in the best interests of the fund and its shareholders, and each fund will be managed without regard to its portfolio turnover rate. The portfolio turnover rates for all of the funds may vary greatly from year to year as well as within a particular year, and may be affected by cash requirements for redemptions of shares. High portfolio turnover rates will generally result in higher transaction costs to a fund, including brokerage commissions, and may have adverse tax consequences.

The portfolio turnover rate for each of the funds is calculated by dividing the lesser of a fund’s purchases or sales of portfolio securities for the year by the monthly average value of the securities. The SEC requires that the calculation exclude all securities whose remaining maturities at the time of acquisition are one year or less.

DISCLOSURE OF PORTFOLIO HOLDINGS

It is the policy of the funds to protect the confidentiality of their holdings and prevent the selective disclosure of non-public information about the funds’ portfolio holdings. The funds’ service providers are required to comply with this policy. No non-public information concerning the portfolio holdings of the funds may be disclosed to any unaffiliated third party, except as provided below. The Board of Trustees has adopted formal procedures governing compliance with the funds’ policies.

The funds, or their duly authorized service providers, may publicly disclose holdings of all funds in accordance with regulatory requirements, such as periodic portfolio disclosure in filings with the SEC. A summary or list of a fund’s completed purchases and sales may only be made available after the public disclosure of a fund’s portfolio holdings.

The funds publish all portfolio holdings on a quarterly basis on their website at www.transamericafunds.com approximately 25 days after the end of each calendar quarter. Such information generally remains online for six months or as otherwise consistent with applicable regulations. In addition, the funds publish their top ten holdings (except Class I share holdings) on their website generally within two weeks after the end of each month. The day following such publication, the information is deemed to be publicly disclosed for the purposes of the policies and procedures adopted by the funds. The funds may then forward the information to investors and consultants requesting it.

There are numerous mutual fund evaluation services such as S&P, Morningstar, Inc. (“Morningstar”) or Lipper, Inc. (“Lipper”) and due diligence departments of broker-dealers and wire houses that regularly analyze the portfolio holdings of mutual funds in order to monitor and report on various attributes including style, capitalization, maturity, yield, beta, etc. These services and departments then distribute the results of their analysis to the public, paid subscribers and/or in-house brokers. In order to facilitate the review of the funds by these services and departments, the funds may distribute (or authorize their service providers to distribute) portfolio holdings to such services and departments before their public disclosure is required or authorized provided that: (i) the recipient does not distribute the portfolio holdings or results of the analysis to third parties, other departments or persons who are likely to use the information for purposes of purchasing or selling the funds before the portfolio holdings or results of the analysis become public information; and (ii) the recipient signs a written confidentiality agreement. Persons and entities unwilling to execute an acceptable confidentiality agreement may only receive portfolio holdings information that has otherwise been publicly disclosed. Neither the funds nor their service providers receive any compensation from such services and departments. Subject to such departures as the funds’ investment adviser’s compliance department believes reasonable and consistent with reasonably protecting the confidentiality of the portfolio information, each confidentiality agreement should generally provide that, among other things: the portfolio information is the confidential property of the funds (and its service provider, if applicable) and may not be shared or used directly or indirectly for any purpose except as expressly provided in the confidentiality agreement; the recipient of the portfolio information agrees to limit access to the portfolio information to its employees (and agents) who, on a need to know basis, are: (1) authorized to have access to the portfolio information; and (2) subject to confidentiality obligations, including duties not to trade on non-public information, no less restrictive than the confidentiality obligations contained in the Confidentiality Agreement; and upon written request, the recipient agrees to promptly return or destroy, as directed, the portfolio information.

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The Board and an appropriate officer of the investment adviser’s compliance department or the funds’ Chief Compliance Officer (“CCO”) may, on a case-by-case basis, impose additional restrictions on the dissemination of portfolio information and waive certain requirements. To the extent required by law, the CCO reports to the Board violations of the funds’ policies and procedures on disclosure of portfolio holdings.

In addition, separate account and unregistered product clients of TAM, the sub-advisers of the funds, or their respective affiliates generally have access to information regarding the portfolio holdings of their own accounts. Prospective clients may also have access to representative portfolio holdings. These clients and prospective clients are not subject to the portfolio holdings disclosure policies described above. Some of these separate accounts and unregistered product clients have substantially similar or identical investment objectives and strategies to certain funds, and therefore may have substantially similar or nearly identical portfolio holdings as those funds.

INVESTMENT ADVISORY AND OTHER SERVICES

Transamerica Funds has entered into an Investment Advisory Agreement (“Advisory Agreement”) on behalf of each fund with Transamerica Asset Management, Inc. (“TAM”), located at 570 Carillon Parkway, St. Petersburg, Florida 33716. TAM supervises each respective fund’s investments and conducts its investment program. TAM hires sub-advisers to furnish investment advice and recommendations and has entered into sub-advisory agreements with each sub-adviser.

TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) (“Western Reserve”) and AUSA Holding Company (23%) (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group. AEGON USA Investment Management, LLC and Transamerica Investment Management, LLC are affiliates of TAM and Transamerica Funds.

Investment Adviser Compensation

TAM receives compensation calculated daily and paid monthly from the funds at the annual rates indicated below (expressed as a specified percentage of the fund’s average daily net assets). The table below lists those percentages by fund.

Fund Name	Percentage of Average Daily Net Assets
Transamerica AllianceBernstein International Value	0.88% of the first $200 million
	0.81% over $200 million up to $500 million
	0.77% in excess of $500 million
Transamerica American Century Large Company Value	0.835% of the first $250 million
	0.80% over $250 million up to $400 million
	0.775% over $400 million up to $750 million
	0.70% in excess of $750 million
Transamerica Asset Allocation — Conservative Portfolio	0.10%
Transamerica Asset Allocation — Growth Portfolio	0.10%
Transamerica Asset Allocation — Moderate Growth Portfolio	0.10%
Transamerica Asset Allocation — Moderate Portfolio	0.10%
Transamerica Balanced	0.80% of the first $250 million
	0.75% over $250 million up to $500 million
	0.70% over $500 million up to $1.5 billion
	0.625% in excess of $1.5 billion
Transamerica BlackRock Global Allocation	0.80% of the first $100 million
	0.72% in excess of $100 million
Transamerica BlackRock Large Cap Value	0.80% of the first $250 million
	0.775% over $250 million up to $750 million
	0.75% in excess of $750 million
Transamerica BlackRock Natural Resources	0.80% of the first $250 million
	0.775% over $250 million up to $500 million
	0.75% in excess of $500 million
Transamerica BNY Mellon Market Neutral Strategy	1.40%

32

Fund Name	Percentage of Average Daily Net Assets
Transamerica Clarion Global Real Estate Securities	0.80% of the first $250 million
	0.775% over $250 million up to $500 million
	0.70% over $500 million up to $1 billion
	0.65% in excess of $1 billion
Transamerica Convertible Securities	0.75% of the first $250 million
	0.70% in excess of $250 million
Transamerica Equity	0.75% of the first $500 million
	0.70% over $500 million up to $2.5 billion
	0.65% in excess of $2.5 billion
Transamerica Evergreen Health Care	0.87% of the first $100 million
	0.85% over $100 million up to $250 million
	0.80% in excess of $250 million
Transamerica Evergreen International Small Cap	1.07% of the first $250 million
	1.00% in excess of $250 million
Transamerica Federated Market Opportunity	0.85% of the first $30 million
	0.80% over $30 million up to $50 million
	0.70% over $50 million up to $500 million
	0.675% over $500 million up to $750 million
	0.65% in excess of $750 million
Transamerica Flexible Income	0.725% of the first $250 million
	0.675% over $250 million up to $350 million
	0.625% in excess of $350 million
Transamerica Growth Opportunities	0.80% of the first $250 million
	0.75% over $250 million up to $500 million
	0.70% in excess of $500 million
Transamerica High Yield Bond	0.59% of the first $400 million
	0.575% over $400 million up to $750 million
	0.55% in excess of $750 million
Transamerica Jennison Growth	0.80% of the first $250 million
	0.775% over $250 million up to $500 million
	0.70% over $500 million up to $1 billion
	0.675% over $1 billion up to $1.5 billion
	0.65% in excess of $1.5 billion
Transamerica JPMorgan Core Bond	0.45% of the first $750 million
	0.40% over $750 million up to $1 billion
	0.375% in excess of $1 billion
Transamerica JPMorgan International Bond	0.55% of the first $100 million
	0.52% over $100 million up to $250 million
	0.51% over $250 million up to $500 million
	0.50% over $500 million up to $1 billion
	0.47% in excess of $1 billion
Transamerica JPMorgan Mid Cap Value	0.85% of the first $100 million
	0.80% in excess of $100 million
Transamerica Legg Mason Partners All Cap	0.80% of the first $500 million
	0.675% in excess of $500 million
Transamerica Loomis Sayles Bond	0.675% of the first $200 million
	0.625% over $200 million up to $750 million
	0.60% in excess of $750 million
Transamerica Marsico Growth	0.80% of the first $500 million
	0.70% in excess of $500 million

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Fund Name	Percentage of Average Daily Net Assets
Transamerica Marsico International Growth	1.05% of the first $300 million
	1.01% over $300 million up to $400 million
	0.96% over $400 million up to $1 billion
	0.91% in excess of $1 billion
Transamerica MFS International Equity	0.925% of the first $250 million
	0.90% over $250 million up to $500 million
	0.85% over $500 million up to $1 billion
	0.80% in excess of $1 billion
Transamerica Money Market	0.40%
Transamerica Multi-Manager Alternative	0.20% of the first $500 million
Strategies Portfolio	0.19% over $500 million up to $1 billion
	0.18% in excess of $1 billion
Transamerica Multi-Manager International Portfolio	0.10%
Transamerica Neuberger Berman International	1.00% of the first $100 million
	0.95% in excess of $100 million
Transamerica Oppenheimer Developing Markets	1.20% of the first $50 million
	1.15% over $50 million up to $200 million
	1.10% over $200 million up to $500 million
	1.05% in excess of $500 million
Transamerica Oppenheimer Small- & Mid-Cap Value	0.95% of the first $100 million
	0.90% over $100 million up to $250 million
	0.85% over $250 million up to $500 million
	0.825% in excess of $500 million
Transamerica PIMCO Real Return TIPS	0.70% of the first $250 million
	0.65% over $250 million up to $750 million
	0.60% over $750 million up to $1 billion
	0.55% in excess of $1 billion
Transamerica PIMCO Total Return	0.675% of the first $250 million
	0.65% over $250 million up to $750 million
	0.60% in excess of $750 million
Transamerica Schroders International Small Cap	1.07% of the first $300 million
	1.00% in excess of $300 million
Transamerica Science & Technology	0.78% of the first $500 million
	0.70% in excess of $500 million
Transamerica Short-Term Bond	0.65% of the first $250 million
	0.60% over $250 million up to $500 million
	0.575% over $500 million up to $1 billion
	0.55% in excess of $1 billion
Transamerica Small/Mid Cap Value	0.80% of the first $500 million
	0.75% in excess of $500 million
Transamerica Templeton Global	0.80% of the first $500 million
	0.70% in excess of $500 million
Transamerica Third Avenue Value	0.80%
Transamerica Thornburg International Value	1.10% of the first $100 million
	1.00% over $100 million up to $300 million
	0.95% in excess of $300 million
Transamerica UBS Dynamic Alpha	1.40% of the first $150 million
	1.30% over $150 million up to $300 million
	1.20% in excess of $300 million

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Fund Name	Percentage of Average Daily Net Assets
Transamerica UBS Large Cap Value	0.82% of the first $200 million
	0.76% over $200 million up to $400 million
	0.74% over $400 million up to $750 million
	0.71% over $750 million up to $1 billion
	0.67% over $1 billion up to $1.5 billion
	0.62% in excess of $1.5 billion
Transamerica Value Balanced	0.75% of the first $500 million
	0.65% over $500 million up to $1 billion
	0.60% in excess of $1 billion
Transamerica Van Kampen Emerging Markets Debt	0.95% of the first $250 million
	0.85% over $250 million up to $500 million
	0.80% in excess of $500 million
Transamerica Van Kampen Mid-Cap Growth	0.80% of the first $1 billion
	0.775% in excess of $1 billion
Transamerica Van Kampen Small Company Growth	0.95% of the first $500 million
	0.85% in excess of $500 million
Transamerica WMC Emerging Markets	1.15% of the first $300 million
	1.10% in excess of $300 million

Advisory Agreement

For each fund, the duties and responsibilities of the investment adviser are specified in the fund’s Advisory Agreement. Pursuant to the Advisory Agreement for each fund, TAM, subject to the supervision of the Trustees and in conformity, with the stated policies of the funds, manages the operations of each fund. TAM is authorized to enter into sub-advisory agreements for investment advisory services in connection with the management of each fund. TAM continues to have responsibility for all investment advisory services furnished pursuant to all sub-advisory agreements.

The Advisory Agreement is not assignable and may be terminated without penalty upon 60 days’ written notice at the option of either the fund, TAM or by a vote of shareholders of each fund. The Advisory Agreement provides that it can be continued from year to year so long as such continuance is specifically approved annually (a) by the Board of Trustees or by a majority of the outstanding shares of each fund and (b) by a majority vote of the Trustees who are not parties to the Advisory Agreement or interested persons of any such party cast in person at a special meeting called for such purposes.

The Advisory Agreement also provides that TAM shall not be liable to the funds or to any shareholder for any error of judgment or mistake of law or for any loss suffered by a fund or by any shareholder in connection with matters to which the Advisory Agreement relates, except for a breach of fiduciary duty or a loss resulting from willful misfeasance, bad faith, gross negligence or reckless disregard on the part of TAM in the performance of its duties thereunder.

Each fund pays its allocable share of the fees and expenses of a fund’s non-interested trustees, custodian and transfer agent fees, brokerage commissions and all other expenses in connection with the execution of its portfolio transactions, administrative, clerical, recordkeeping, bookkeeping, legal, auditing and accounting expenses, interest and taxes, expenses of preparing tax returns, expenses of shareholders’ meetings and preparing, printing and mailing proxy statements (unless otherwise agreed to by the funds or TAM), expenses of preparing and typesetting periodic reports to shareholders (except for those reports the funds permit to be used as sales literature), and the costs, including filing fees, of renewing or maintaining registration of fund shares under federal and state law.

Expense Limitation

TAM has entered into an expense limitation agreement with Transamerica Funds on behalf of certain funds, pursuant to which TAM has agreed to reimburse a fund’s expenses or waive fees, or both, whenever, in any fiscal year, the total cost to a fund of normal operating expenses chargeable to the fund, including the investment advisory fee but excluding brokerage commissions, interest, taxes and 12b-1 fees, certain extraordinary expenses, and, in the case of the funds for which Morningstar Associates, LLC serves as portfolio construction manager, “acquired fund fees and expenses” (as this term is defined for regulatory purposes), exceeds a certain percentage of the fund’s average daily net assets. That percentage is listed by fund in the following table, as specified for that fund (“expense cap”). Certain funds, may at a later date reimburse TAM for operating expenses previously paid on behalf of such funds during the previous 36 months (36-month reimbursement), but only if, after such reimbursement, the funds’ expense ratios do not exceed the expense cap. The agreement continues automatically for one-year terms unless TAM provides written notice to Transamerica Funds prior to the end of the then-current term. In addition, the agreement will terminate upon termination of the Advisory Agreement. The funds currently included in the agreement are listed as follows:

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Funds included in the 36-month reimbursement arrangements:

Transamerica AllianceBernstein Interational Value*	Transamerica Marsico International Growth
Transamerica Asset Allocation — Conservative Portfolio	Transamerica Money Market
Transamerica Asset Allocation — Growth Portfolio	Transamerica Multi-Manager Alternative Strategies Portfolio
Transamerica Asset Allocation — Moderate Growth Portfolio	Transamerica Multi-Manager International Portfolio *
Transamerica Asset Allocation — Moderate Portfolio	Transamerica Neuberger Berman International*
Transamerica Balanced	Transamerica Oppenheimer Developing Markets*
Transamerica BlackRock Global Allocation*	Transamerica Oppenheimer Small- & Mid-Cap Value
Transamerica BlackRock Large Cap Value	Transamerica Schroders International Small Cap
Transamerica BlackRock Natural Resources	Transamerica Science & Technology
Transamerica BNY Mellon Market Neutral Strategy	Transamerica Short-Term Bond
Transamerica Convertible Securities	Transamerica Small/Mid Cap Value
Transamerica Equity*	Transamerica Templeton Global
Transamerica Evergreen International Small Cap	Transamerica Third Avenue Value
Transamerica Federated Market Opportunity*	Transamerica UBS Dynamic Alpha
Transamerica Flexible Income	Transamerica Thornburg International Value
Transamerica Growth Opportunities*	Transamerica UBS Large Cap Value
Transamerica High Yield Bond*	Transamerica Value Balanced*
Transamerica JPMorgan Core Bond	Transamerica Van Kampen Emerging Markets Debt
Transamerica JPMorgan International Bond*	Transamerica Van Kampen Mid-Cap Growth*
Transamerica JPMorgan Mid Cap Value	Transamerica Van Kampen Small Company Growth
Transamerica Legg Mason Partners All Cap*	Transamerica WMC Emerging Markets
Transamerica Loomis Sayles Bond

* The fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

The applicable expense caps for each of the funds are listed in the following table.

Fund Name	Expense Cap
Transamerica AllianceBernstein International Value		1.13	%
Transamerica American Century Large Company		N/A
Transamerica Asset Allocation — Conservative Portfolio		0.45	%
Transamerica Asset Allocation — Growth Portfolio		0.45	%
Transamerica Asset Allocation — Moderate Growth Portfolio		0.45	%
Transamerica Asset Allocation — Moderate Portfolio		0.45	%
Transamerica Balanced		1.45	%
Transamerica BlackRock Global Allocation		1.00	%
Transamerica BlackRock Large Cap Value		1.00	%
Transamerica BlackRock Natural Resources		1.00	%
Transamerica BNY Mellon Market Neutral Strategy		1.65	%
Transamerica Clarion Global Real Estate Securities		N/A
Transamerica Convertible Securities		1.35	%
Transamerica Equity		1.17	%
Transamerica Evergreen Health Care		N/A
Transamerica Evergreen International Small Cap		1.32	%
Transamerica Federated Market Opportunity		1.05	%
Transamerica Flexible Income		1.50	%
Transamerica Growth Opportunities		1.40	%
Transamerica High Yield Bond		1.24	%
Transamerica Jennison Growth		N/A
Transamerica JPMorgan Core Bond		0.70	%
Transamerica JPMorgan International Bond		0.75	%
Transamerica JPMorgan Mid Cap Value		1.05	%
Transamerica Legg Mason Partners All Cap		1.20	%
Transamerica Loomis Sayles Bond		0.88	%
Transamerica Marsico Growth		N/A
Transamerica Marsico International Growth		1.31	%
Transamerica MFS International Equity		N/A
Transamerica Money Market		0.48	%
Transamerica Multi-Manager Alternative Strategies Portfolio		0.55	%
Transamerica Multi-Manager International Portfolio		0.45	%
Transamerica Neuberger Berman International		1.25	%
Transamerica Oppenheimer Developing Markets		1.45	%

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Fund Name	Expense Cap
Transamerica Oppenheimer Small- & Mid-Cap Value		1.15	%
Transamerica PIMCO Real Return TIPS		N/A
Transamerica PIMCO Total Return		N/A
Transamerica Schroders International Small Cap		1.27	%
Transamerica Science & Technology		1.18	%
Transamerica Short-Term Bond		0.85	%
Transamerica Small/Mid Cap Value		1.40	%
Transamerica Templeton Global		1.20	%
Transamerica Third Avenue Value		1.00	%
Transamerica Thornburg International Value		1.35	%
Transamerica UBS Dynamic Alpha		1.65	%
Transamerica UBS Large Cap Value		1.02	%
Transamerica Value Balanced		1.20	%
Transamerica Van Kampen Emerging Markets Debt		1.15	%
Transamerica Van Kampen Mid-Cap Growth		1.00	%
Transamerica Van Kampen Small Company Growth		1.15	%
Transamerica WMC Emerging Markets		1.40	%

Total Advisory Fees Paid by the Funds

The following table sets forth the total amounts the funds paid to TAM, and reimbursements by TAM to the funds, if any, for the fiscal years ended October 31, 2008, 2007, and 2006.

	Advisory Fee After Expense
	Reimbursement						Expense Reimbursements
	October 31						October 31
Fund Name	2008		2007		2006		2008		2007		2006
Transamerica AllianceBernstein International Value	$	3,857,282	$	3,610,558	$	1,860,378		—		—		—
Transamerica American Century Large Company Value	$	4,873,503	$	4,873,134	$	2,482,321		—		—		—
Transamerica Asset Allocation — Conservative Portfolio	$	781,360	$	601,349	$	482,959		—		—		—
Transamerica Asset Allocation — Growth Portfolio	$	2,097,266	$	2,025,855	$	1,354,904		—		—		—
Transamerica Asset Allocation — Moderate Growth Portfolio	$	3,704,481	$	3,494,375	$	2,486,267		—		—		—
Transamerica Asset Allocation — Moderate Portfolio	$	2,089,670	$	1,928,772	$	1,508,521		—		—		—
Transamerica Balanced	$	1,209,771	$	1,561,291	$	1,848,936		—		—		—
Transamerica Bjurman, Barry Micro Emerging Growth(1)	$	874,256	$	725,126	$	80,204		—		—	$	10,974
Transamerica BlackRock Global Allocation	$	3,634,197	$	3,458,499	$	2,233,747		—		—		—
Transamerica BlackRock Large Cap Value	$	4,449,598	$	4,455,741	$	3,544,934		—		—		—
Transamerica BlackRock Natural Resources(2)	$	1,199,467	$	748,557		N/A		—		—		N/A
Transamerica BNY Mellon Market Neutral Strategy(2)	$	1,711,511	$	1,200,949		N/A		—		—		N/A
Transamerica Clarion Global Real Estate Securities	$	2,617,707	$	2,750,825	$	2,003,031		—		—		—
Transamerica Convertible Securities	$	1,171,747	$	1,504,329	$	1,750,906		—		—		—
Transamerica Equity	$	11,025,065	$	12,204,843	$	4,724,483	$	54,126	$	75,203	$	92,595
Transamerica Evergreen Health Care	$	2,488,706	$	3,322,915	$	4,101,091		—		—		—
Transamerica Evergreen International Small Cap	$	5,292,617	$	5,554,835	$	4,299,261		—		—		—
Transamerica Federated Market Opportunity	$	562,713	$	435,469	$	548,051		—		—		—
Transamerica Flexible Income	$	2,534,660	$	2,684,404	$	2,132,478		—		—		—

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	Advisory Fee After Expense
	Reimbursement							Expense Reimbursements
	October 31							October 31
Fund Name	2008		2007			2006		2008		2007		2006
Transamerica Growth Opportunities	$	2,076,760	$	2,500,877		$	2,893,470	$	57,831	$	40,709	$	43,099
Transamerica High Yield Bond	$	2,651,881	$	2,298,026		$	2,323,067		—		—		—
Transamerica Jennison Growth	$	1,667,161	$	1,229,857		$	1,067,199		—		—		—
Transamerica JPMorgan Core Bond(3)		N/A		N/A			N/A		N/A		N/A		N/A
Transamerica JPMorgan International Bond	$	4,122,933	$	3,644,107		$	1,973,829		—		—		—
Transamerica JPMorgan Mid Cap Value	$	1,888,901	$	2,159,897		$	1,872,874		—		—		—
Transamerica Legg Mason Partners All Cap	$	981,445	$	1,553,398		$	1,830,092	$	40,984	$	6,543	$	26,298
Transamerica Legg Mason Partners Investors Value(4)	$	543,876	$	697,211		$	837,331		—	$	2,873	$	3,792
Transamerica Loomis Sayles Bond(2)	$	4,102,549	$	1,336,154			N/A		—		—		N/A
Transamerica Marsico Growth	$	3,308,288	$	2,246,319		$	1,096,780		—		—		—
Transamerica Marsico International Growth	$	5,711,807	$	4,817,605		$	4,098,323		—		—		—
Transamerica MFS International Equity	$	270,572	$	232,693		$	229,986		—	$	57,865	$	189,621
Transamerica Money Market	$	411,077	$	217,323		$	100,623	$	410,827	$	472,471	$	456,606
Transamerica Multi-Manager Alternative Strategies Portfolio(5)	$	328,975	$	(67,601	)		N/A		—	$	129,061		N/A
Transamerica Multi-Manager International Portfolio	$	425,974	$	284,952		$	4,007		—		—	$	47,233
Transamerica Neuberger Berman International	$	5,176,051	$	4,833,389		$	3,649,818		—		—		—
Transamerica Oppenheimer Developing Markets	$	6,564,617	$	5,450,708		$	2,594,112		—		—	$	582,735
Transamerica Oppenheimer Small- & Mid-Cap Value	$	1,655,664	$	1,272,746		$	162,070		—		—	$	12,804
Transamerica PIMCO Real Return TIPS	$	4,962,219	$	4,335,274		$	3,823,329		—		—		—
Transamerica PIMCO Total Return	$	3,876,872	$	3,143,961		$	1,542,641		—		—		—
Transamerica Schroders International Small Cap(6)	$	897,566		N/A			N/A	$	26,424		N/A		N/A
Transamerica Science & Technology	$	593,397	$	565,479		$	530,103	$	25,751	$	31,394	$	35,131
Transamerica Short-Term Bond	$	3,521,430	$	3,125,766		$	1,915,238		—		—		—
Transamerica Small/Mid Cap Value	$	5,769,030	$	4,623,632		$	4,314,492		—		—		—
Transamerica Templeton Global	$	1,278,496	$	1,790,846		$	2,090,130	$	161,960	$	260,229	$	334,265
Transamerica Third Avenue Value(5)	$	4,345,379	$	2,647,137			N/A		—		—		N/A
Transamerica Thornburg International Value(7)	$	74,205		N/A			N/A	$	44,927		N/A		N/A
Transamerica UBS Dynamic Alpha(2)	$	2,849,670	$	2,192,255			N/A		—		—		N/A
Transamerica UBS Large Cap Value	$	6,146,075	$	5,135,922		$	1,602,395		—		—		—
Transamerica Value Balanced	$	344,768	$	447,693		$	452,363	$	14,205	$	24,050	$	43,756

38

	Advisory Fee After Expense
	Reimbursement						Expense Reimbursements
	October 31						October 31
Fund Name	2008		2007		2006		2008		2007		2006
Transamerica Van Kampen Emerging Markets Debt	$	3,209,724	$	3,077,001	$	3,356,477		—		—		—
Transamerica Van Kampen Mid-Cap Growth	$	1,022,708	$	696,926	$	369,607		—		—		—
Transamerica Van Kampen Small Company Growth	$	1,287,001	$	1,914,635	$	2,566,908		—		—		—
Transamerica WMC Emerging Markets(7)	$	18,941		N/A		N/A	$	55,328		N/A		N/A

(1)	Transamerica Bjurman, Barry Micro Emerging Growth was liquidated and dissolved on April 24, 2009.
(2)	Transamerica BlackRock Natural Resources, Transamerica Loomis Sayles Bond, Transamerica BNY Mellon Market Neutral Strategy and Transamerica UBS Dynamic Alpha commenced operations on January 3, 2007, and as such, there is no historical fee information for fiscal year ended October 31, 2006.
(3)	Transamerica JPMorgan Core Bond had not commenced operations prior to the date of this SAI, and as such, there is no historical fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.
(4)	Transamerica Legg Mason Partners Investors Value was liquidated and dissolved on April 3, 2009.
(5)	Transamerica Multi-Manager Alternative Strategies Portfolio and Transamerica Third Avenue Value commenced operations on December 28, 2006 and May 1, 2007, respectively, and as such, there is no historical fee information for the fiscal year ended October 31, 2006.
(6)	Transamerica Schroders International Small Cap commenced operations on March 1, 2008, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.
(7)	Transamerica Thornburg International Value and Transamerica WMC Emerging Markets commenced operations on September 15, 2008 and September 30, 2008, respectively, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.

SUB-ADVISERS

AEGON USA Investment Management, LLC (“AUIM”), located at 4333 Edgewood Rd NE, Cedar Rapids, IA 52499, serves as sub-adviser to Transamerica High Yield Bond pursuant to a sub-advisory agreement with TAM.

AllianceBernstein L.P. (“AllianceBernstein”), located at 1345 Avenue of the Americas, New York, NY 10105, serves as sub-adviser to Transamerica AllianceBernstein International Value pursuant to a sub-advisory agreement with TAM.

American Century Investment Management, Inc. (“American Century”), American Century Tower, located at 4500 Main Street, Kansas City, MO 64111, serves as sub-adviser to Transamerica American Century Large Company Value pursuant to a sub-advisory agreement with TAM.

BlackRock Investment Management, LLC (“BlackRock”), located at 800 Scudders Mill Road, Plainsboro, NJ 08536, serves as sub-adviser to Transamerica BlackRock Global Allocation, Transamerica BlackRock Large Cap Value and Transamerica BlackRock Natural Resources pursuant to a sub-advisory agreement with TAM.

ClearBridge Advisors, LLC (“ClearBridge”), located at 620 Eighth Avenue, New York, NY, 10018, serves as sub-adviser to Transamerica Legg Mason Partners All Cap pursuant to a sub-advisory agreement with TAM.

Columbia Management Advisors, LLC (“Columbia”), located at 100 Federal Street, Boston, MA 02110, serves as sub-adviser to Transamerica Marsico Growth and Transamerica Marsico International Growth pursuant to a sub-advisory agreement with TAM. Columbia has entered into an agreement with Marsico Capital Management, LLC (“Marsico”), 1200 17^th Street, Suite 1600, Denver, CO 80202, wherein Marsico will provide portfolio management to these funds.

Evergreen Investment Management Company, LLC (“Evergreen”), located at 200 Berkeley Street, Boston, MA 02116, serves as sub-adviser to Transamerica Evergreen Health Care and Transamerica Evergreen International Small Cap pursuant to a sub-advisory agreement with TAM.

Federated Equity Management Company of Pennsylvania (“Federated”), located at 1001 Liberty Avenue, Pittsburgh, PA 15222-3779, serves as sub-adviser to Transamerica Federated Market Opportunity pursuant to a sub-advisory agreement with TAM.

Mellon Capital Management Corporation (“BNY Mellon”), located at 50 Fremont Street, Suite 3900, San Francisco, CA 94105,, serves as sub-adviser to Transamerica BNY Mellon Market Neutral Strategy pursuant to a sub-advisory agreement with TAM.

ING Clarion Real Estate Securities, L.P. (“Clarion”), located at 201 King of Prussia Road, Suite 600 Radnor, PA 19087, serves as sub-adviser to Transamerica Clarion Global Real Estate Securities pursuant to a sub-advisory agreement with TAM.

Jennison Associates LLC (“Jennison”), located at 466 Lexington Avenue, New York, NY 10017, serves as sub-adviser to Transamerica Jennison Growth pursuant to a sub-advisory agreement with TAM.

39

J.P. Morgan Investment Management Inc. (“JPMorgan”), located at 245 Park Avenue, New York, NY 10167, serves as sub-adviser to Transamerica JPMorgan Core Bond, Transamerica JPMorgan International Bond and Transamerica JPMorgan Mid Cap Value pursuant to a sub-advisory agreement with TAM.

Loomis, Sayles & Company, L.P. (“Loomis”), located at One Financial Center, Boston, MA 02111, serves as sub-adviser to Transamerica Loomis Sayles Bond pursuant to a sub-advisory agreement with TAM.

MFS Investment Management (“MFS”), located at 500 Boylston Street, Boston, MA 02116, serves as sub-adviser to Transamerica MFS International Equity pursuant to a sub-advisory agreement with TAM. MFS is a subsidiary of Sun Life of Canada (U.S.) Financial Services Holdings, Inc., which in turn is an indirect majority owned subsidiary of Sun Life Financial Inc.

Morgan Stanley Investment Management Inc., doing business as Van Kampen (“Van Kampen”), located at 522 Fifth Avenue, New York, NY 10036, serves as sub-adviser to Transamerica Van Kampen Emerging Markets Debt, Transamerica Van Kampen Mid-Cap Growth and Transamerica Van Kampen Small Company Growth pursuant to a sub-advisory agreement with TAM.

Neuberger Berman Management, LLC (“Neuberger Berman”), located at 605 Third Avenue, 2^nd Floor, New York, NY 10158-0180, serves as sub-adviser to Transamerica Neuberger Berman International pursuant to a sub-advisory agreement with TAM.

OppenheimerFunds, Inc. (“Oppenheimer”), located at Two World Financial Center, 225 Liberty Street, 11th Floor, New York, NY 10281-1008, serves as sub-adviser to Transamerica Oppenheimer Developing Markets and Transamerica Oppenheimer Small- & Mid-Cap Value pursuant to sub-advisory agreements with TAM.

Pacific Investment Management Company LLC (“PIMCO”), located at 840 Newport Center Drive, Newport Beach, CA 92660, serves as sub-adviser to Transamerica PIMCO Real Return TIPS and Transamerica PIMCO Total Return and pursuant to sub-advisory agreements with TAM.

Schroder Investment Management North America Inc. (“Schroders”), located at 875 Third Avenue, 22^nd Floor, New York, NY 10022-6225, serves as sub-adviser to Transamerica Schroders International Small Cap, pursuant to a sub-advisory agreement with TAM.

Templeton Investment Counsel, LLC (“Templeton”), located at 500 E. Broward Blvd., Suite 2100, Ft. Lauderdale, FL 33394, serves as co-sub-adviser to Transamerica Templeton Global pursuant to a sub-advisory agreement with TAM.

Third Avenue Management LLC (“Third Avenue”), located at 622 Third Avenue, 32^nd Floor, New York, NY 10017-2023, serves as sub-adviser to Transamerica Third Avenue Value, pursuant to a sub-advisory agreement with TAM.

Thornburg Investment Management, Inc. (“Thornburg”), located at 2300 Ridgetop Road, Santa Fe, NM 87506, serves as sub-adviser to Transamerica Thornburg International Value, pursuant to a sub-advisory agreement with TAM.

Transamerica Investment Management, LLC (“TIM”), located at 11111 Santa Monica Blvd., Suite 820, Los Angeles, CA 90025, serves as sub-adviser to Transamerica Balanced, Transamerica Convertible Securities, Transamerica Equity, Transamerica Flexible Income, Transamerica Growth Opportunities, Transamerica Money Market, Transamerica Short-Term Bond, Transamerica Science & Technology, Transamerica Small/Mid Cap Value, Transamerica Value Balanced and as a co-sub-adviser to Transamerica Templeton Global, pursuant to sub-advisory agreements with TAM.

UBS Global Asset Management (Americas) Inc. (“UBS”), located at One North Wacker Drive, Chicago, IL 60606, serves as sub-adviser to Transamerica UBS Dynamic Alpha and Transamerica UBS Large Cap Value pursuant to a sub-advisory agreement with TAM.

Wellington Management Company, LLP (“Wellington Management”), located at 75 State Street, Boston, MA 02109, serves as sub-adviser to Transamerica WMC Emerging Markets pursuant to a sub-advisory agreement with TAM.

The sub-advisers may also serve as sub-advisers to certain portfolios of Transamerica Series Trust (“TST”), Transamerica Investors, Inc. (“Premier”), and Transamerica Partners Portfolios (“TPP”), registered investment companies. They may be referred to herein collectively as the “sub-advisers” and individually as a “sub-adviser.”

TAM, and not the funds, pays the sub-advisers for their services. Each sub-adviser receives monthly compensation from TAM at the annual rate of a specified percentage, indicated below, of a fund’s average daily net assets:

40

Fund Name	Sub-Adviser	Sub-Advisory Fee
Transamerica AllianceBernstein International Value	Alliance	0.45% of the first $200 million
		0.36% over $200 million up to $500 million
		0.32% in excess of $500 million
Transamerica American Century Large Company Value*	American Century	0.40% of the first $250 million
		0.375% over $250 million up to $500 million
		0.35% over $500 million up to $750 million
		0.30% in excess of $750 million
Transamerica Balanced	TIM	0.35% of the first $250 million
		0.325% over $250 million up to $500 million
		0.30% over $500 million up to $1.5 billion
		0.25% in excess of $1.5 billion, less 50% of any amount reimbursed pursuant to the fund’s expense limitation
Transamerica BlackRock Global Allocation	BlackRock	0.44% of the first $100 million
		0.32% in excess of $100 million
Transamerica BlackRock Large Cap Value*	BlackRock	0.35% of the first $250 million
		0.325% over $250 million up to $750 million
		0.30% in excess of $750 million
Transamerica BlackRock Natural Resources	BlackRock	0.40% of the first $250 million
		0.375% over $250 million up to $500 million
		0.35% over $500 million.
Transamerica BNY Mellon Market Neutral Strategy	BNY Mellon	0.90%
Transamerica Clarion Global Real Estate Securities	Clarion	0.40% of the first $250 million
		0.375% over $250 million up to $500 million
		0.35% over $500 million up to $1 billion
		0.30% in excess of $1 billion
Transamerica Convertible Securities	TIM	0.35%, less 50% of any amount reimbursed pursuant to the fund’s expense limitation
Transamerica Equity*	TIM	0.35% of the first $500 million
		0.30% over $500 million up to $2.5 billion
		0.25% in excess of $2.5 billion, less 50% of any amount reimbursed pursuant to the fund’s expense limitation
Transamerica Evergreen Health Care	Evergreen	0.42% of the first $100 million
		0.40% over $100 million up to $250 million
		0.35% in excess of $250 million
Transamerica Evergreen International Small Cap	Evergreen	0.52% of the first $250 million
		0.50% in excess of $250 million
Transamerica Federated Market Opportunity	Federated	0.50% of the first $30 million 0.35% over $30 million up to $50 million
		0.25% over $50 million up to $500 million
		0.225% over $500 million up to $750 million
		0.20% in excess of $750 million
Transamerica Flexible Income	TIM	0.30% of the first $250 million
		0.25% over $250 million up to $350 million
		0.20% in excess of $350 million, less 50% of any amount reimbursed pursuant to the fund’s expense limitation

^* The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with the same named fund managed by the sub-adviser for Transamerica Series Trust.

41

Fund Name	Sub-Adviser	Sub-Advisory Fee
Transamerica Growth Opportunities	TIM	0.40% of the first $100 million
		0.35% in excess of $100 million, less 50% of any amount reimbursed pursuant to the fund’s expense limitation
Transamerica High Yield Bond	AUIM	0.28% of the first $400 million
		0.25% over $400 million up to $750 million
		0.20% in excess of $750 million
Transamerica Jennison Growth*	Jennison	0.40% of the first $250 million
		0.35% over $250 million up to $500 million
		0.30% over $500 million up to $1 billion
		0.25% over $1 billion up to $1.5 billion
		0.20% in excess of $1.5 billion
Transamerica JPMorgan Core Bond	JPM	0.20% of the first $750 million
		0.175% over $750 million up to $1 billion
		0.15% in excess of $1 billion
Transamerica JPMorgan International Bond	JPMorgan	0.20% of the first $100 million
		0.17% over $100 million up to $250 million
		0.16% over $250 million up to $500 million
		0.15% over $500 million $1 billion
		0.12% in excess of $1 billion
Transamerica JPMorgan Mid Cap Value	JPMorgan	0.40%
Transamerica Legg Mason Partners All Cap*	ClearBridge	0.425% of the first $100 million
		0.40% over $100 million up to $500 million
		0.35% in excess of $500 million
Transamerica Loomis Sayles Bond	Loomis	0.325% of the first $200 million
		0.30% in excess of $200 million
Transamerica Marsico Growth	Columbia	0.40% of the first $250 million
		0.375% over $250 million up to $500 million
		0.35% over $500 million up to $1 billion
		0.30% in excess of $1 billion
Transamerica Marsico International Growth	Columbia	0.45% of the first $400 million
		0.40% over $400 million up to $1 billion
		0.35% in excess of $1 billion
Transamerica MFS International Equity	MFS	0.475% of the first $500 million
		0.45% over $500 million up to $1 billion
		0.40% in excess of $1 billion
Transamerica Money Market	TIM	0.15%
Transamerica Neuberger Berman International	Neuberger Berman	0.50% of the first $100 million
		0.45% in excess of $100 million
Transamerica Oppenheimer Developing Markets	Oppenheimer	0.70% of the first $50 million
		0.65% over $50 million up to $200 million
		0.60% over $200 million up to $500 million
		0.55% in excess of $500 million
Transamerica Oppenheimer Small- &	Oppenheimer	0.40% of the first $250 million
Mid-Cap Value		0.375% over $250 up to $500 million
		0.35% in excess of $500 million

^* The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with the same named fund managed by the sub-adviser for Transamerica Series Trust.

42

Fund Name	Sub-Adviser	Sub-Advisory Fee
Transamerica PIMCO Real Return TIPS	PIMCO	0.25% of the first $1 billion
		0.20% in excess of $1 billion
Transamerica PIMCO Total Return**	PIMCO	0.25% of the first $1 billion
		0.225% in excess of $1 billion, only when PIMCO sub-advised assets exceed $3 billion on an aggregate basis
Transamerica Schroders International Small Cap	Schroders	0.60% of the first $300 million 0.55% in excess of $300 million
Transamerica Science & Technology	TIM	0.35% of the first $250 million
		0.30% over $250 million up to $500 million
		0.25% in excess of $500 million
Transamerica Short-Term Bond	TIM	0.25% of the first $250 million
		0.20% over $250 million up to $500 million
		0.175% over $500 up to $1 billion
		0.15% in excess of $1 billion
Transamerica Small/Mid Cap Value	TIM	0.375% of the first $500 million
		0.325% in excess of $500 million, less 50%
		of any amount reimbursed pursuant to the fund’s expense limitation
Transamerica Templeton Global	TIM/	0.35% of the first $500 million
	Templeton	0.30% in excess of $500 million
		Templeton receives a portion of the sub-advisory fee based on the amount of assets that it manages as follows:
		0.40% of the fee for the first $500 million
		0.375% of the fee for assets over $500 million up to $1.5 billion
		0.35% of the fee for assets over $1.5 billion
		TIM receives the sub-advisory fee stated above, less any amount paid to Templeton for its sub-advisory services.
Transamerica Third Avenue Value	Third Avenue	0.40%
Transamerica Thornburg International Value***	Thornburg	0.425% of the first $500 million 0.40% in excess of $500 million
Transamerica UBS Dynamic Alpha	UBS	0.85% of the first $150 million
		0.75% over $150 million up to $300 million
		0.65% in excess of $300 million
Transamerica UBS Large Cap Value	UBS	0.32% of the first $400 million
		0.30% over $400 million up to $750 million
		0.27% over $750 up to $1 billion
		0.25% over $1 billion up to $1.5 billion
		0.20% in excess of $1.5 billion
Transamerica Value Balanced	TIM	0.35% of the first $500 million
		0.325% over $500 million up to $1 billion
		0.30% in excess of $1 billion, less 50% of any amount reimbursed pursuant to the fund’s expense limitation
Transamerica Van Kampen Emerging Markets Debt	Van Kampen	0.45% of the first $250 million 0.35% in excess of $250 million
Transamerica Van Kampen Mid-Cap Growth	Van Kampen	0.40% of the first $1 billion
		0.375% in excess of $1 billion

**

For the purpose of determining the $3 billion aggregate assets, the average daily net assets will be determined on a combined basis with Transamerica PIMCO Total Return, Transamerica PIMCO Total Return VP and Transamerica PIMCO Real Return TIPS. If aggregate assets exceed $3 billion, then the calculation of sub-advisory fees will be based on the combined average daily net assets of Transamerica PIMCO Total Return and Transamerica PIMCO Total Return VP.

***

The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with Transamerica Partners International Equity Portfolio, also sub-advised by Thornburg.

43

Fund Name	Sub-Adviser	Sub-Advisory Fee
Transamerica Van Kampen Small Company Growth	Van Kampen	0.45% of the first $500 million 0.40% in excess of $500 million
Transamerica WMC Emerging Markets	Wellington	0.70%
	Management

Sub-Advisory Fees Paid

The following table sets forth the total amounts of sub-advisory fee paid by TAM to each sub-adviser for the fiscal years ended October 31, 2008, 2007, and 2006:

(Net of Fees Reimbursed)

Fund Name	2008		2007		2006
Transamerica AllianceBernstein International Value	$	1,831,558	$	1,722,413	$	920,216
Transamerica American Century Large Company Value	$	2,155,115	$	2,211,285	$	1,247,192
Transamerica Balanced	$	529,275	$	683,065	$	806,876
Transamerica Bjurman, Barry Micro Emerging Growth(1)	$	457,944	$	379,828	$	46,926
Transamerica BlackRock Global Allocation	$	1,699,643	$	1,621,555	$	1,063,820
Transamerica BlackRock Large Cap Value	$	1,798,090	$	1,793,062	$	1,518,192
Transamerica BlackRock Natural Resources(2)	$	599,733	$	374,278		N/A
Transamerica BNY Mellon Market Neutral Strategy(2)	$	1,100,257	$	772,036		N/A
Transamerica Clarion Global Real Estate Securities	$	1,298,745	$	1,363,303	$	995,168
Transamerica Convertible Securities	$	546,815	$	703,738	$	815,242
Transamerica Equity	$	4,423,815	$	4,780,779	$	2,130,736
Transamerica Evergreen Health Care	$	1,168,545	$	1,535,338	$	2,056,357
Transamerica Evergreen International Small Cap	$	2,608,808	$	2,739,918	$	2,105,575
Transamerica Federated Market Opportunity	$	272,755	$	224,939	$	259,074
Transamerica Flexible Income	$	998,657	$	1,024,991	$	810,505
Transamerica Growth Opportunities	$	972,822	$	1,145,096	$	1,352,228
Transamerica High Yield Bond	$	1,246,566	$	1,090,487	$	1,109,790
Transamerica Jennison Growth	$	794,435	$	602,845	$	532,160
Transamerica JPMorgan Core Bond(3)		N/A		N/A		N/A
Transamerica JPMorgan International Bond(2)	$	1,310,379	$	1,166,731	$	644,344
Transamerica JPMorgan Mid Cap Value	$	919,450	$	1,054,949	$	908,744
Transamerica Legg Mason Partners All Cap	$	521,707	$	792,450	$	944,555
Transamerica Legg Mason Partners Investors Value(4)	$	237,946	$	306,287	$	367,105
Transamerica Loomis Sayles Bond(2)	$	1,971,223	$	642,724		N/A
Transamerica Marsico Growth	$	1,613,259	$	1,108,401	$	546,949
Transamerica Marsico International Growth	$	2,467,659	$	2,211,026	$	1,902,220
Transamerica MFS International Equity	$	138,942	$	149,205	$	221,594
Transamerica Money Market	$	308,214	$	258,673	$	245,610
Transamerica Neuberger Berman International	$	2,478,129	$	2,315,816	$	1,746,729
Transamerica Oppenheimer Developing Markets	$	3,619,556	$	3,029,931	$	1,777,303
Transamerica Oppenheimer Small- & Mid-Cap Value	$	713,628	$	543,595	$	72,620
Transamerica PIMCO Real Return TIPS	$	1,862,452	$	1,619,333	$	1,418,239
Transamerica PIMCO Total Return	$	1,467,066	$	1,181,158	$	549,245
Transamerica Schroders International Small Cap(5)	$	518,125		N/A		N/A
Transamerica Science & Technology	$	277,823	$	267,827	$	258,259
Transamerica Short-Term Bond	$	1,245,653	$	1,120,587	$	719,373
Transamerica Small/Mid Cap Value	$	2,641,536	$	2,145,020	$	2,004,112
Transamerica Templeton Global	$	630,199	$	897,346	$	1,057,986
Transamerica Third Avenue Value(6)	$	2,172,689	$	1,323,568		N/A
Transamerica Thornburg International Value(7)	$	70,359		N/A		N/A
Transamerica UBS Dynamic Alpha(2)	$	1,707,502	$	1,313,910		N/A
Transamerica UBS Large Cap Value	$	2,479,622	$	2,079,770	$	686,662
Transamerica Value Balanced	$	164,487	$	203,630	$	214,099
Transamerica Van Kampen Emerging Markets Debt	$	1,468,710	$	1,422,850	$	1,556,102
Transamerica Van Kampen Mid-Cap Growth	$	511,354	$	348,463	$	183,979
Transamerica Van Kampen Small Company Growth	$	609,632	$	906,933	$	1,212,177
Transamerica WMC Emerging Markets(7)	$	45,207		N/A		N/A

44

(1)	Transamerica Bjurman, Barry Micro Emerging Growth was liquidated and dissolved on April 24, 2009.
(2)	Transamerica BlackRock Natural Resources, Transamerica Loomis Sayles Bond, Transamerica BNY Mellon Market Neutral Strategy and Transamerica UBS Dynamic Alpha commenced operations on January 3, 2007, and as such, there is no historical fee information for the fiscal year ended October 31, 2006.
(3)	Transamerica JPMorgan Core Bond had not commenced operations prior to the date of this SAI, and as such, there is no historical fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.
(4)	Transamerica Legg Mason Partners Investors Value was liquidated and dissolved on April 3, 2009.
(5)	Transamerica Schroders International Small Cap commenced operations on March 1, 2008, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.
(6)	Transamerica Third Avenue Value commenced operations on May 1, 2007 and as such, there is no historical fee information for the fiscal year ended October 31, 2006.
(7)	Transamerica Thornburg International Value and Transamerica WMC Emerging Markets commenced operations on September 15, 2008 and September 30, 2008, respectively, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.

Each of the sub-advisers also serves as investment adviser or sub-adviser to other funds and/or private accounts that may have investment objectives identical or similar to those of the funds. Securities frequently meet the investment objectives of one or all of these funds, the other funds and the private accounts. In such cases, a sub-adviser’s decision to recommend a purchase to one fund or account rather than another is based on a number of factors as set forth in the sub-advisers’ allocation procedures. The determining factors in most cases are the amounts available for investment by each fund or account, the amount of securities of the issuer then outstanding, the value of those securities and the market for them. Another factor considered in the investment recommendations is other investments which each fund or account presently has in a particular industry.

It is possible that at times identical securities will be held by more than one fund or account. However, positions in the same issue may vary and the length of time that any fund or account may choose to hold its investment in the same issue may likewise vary. To the extent that more than one of the funds or private accounts served by a sub-adviser seeks to acquire or sell the same security at about the same time, either the price obtained by the funds or the amount of securities that may be purchased or sold by a fund at one time may be adversely affected. On the other hand, if the same securities are bought or sold at the same time by more than one fund or account, the resulting participation in volume transactions could produce better executions for the funds. In the event more than one fund or account purchases or sells the same security on a given date, the purchase and sale transactions are allocated among the fund(s), the other funds and the private accounts in a manner believed by the sub-advisers to be equitable to each.

Affiliated Sub-adviser — Potential Conflicts of Interest.

As described above, TAM has selected TIM and AUIM each to serve as a sub-adviser to certain of the funds. TIM, AUIM and TAM are affiliated entities, both of which are indirectly controlled by AEGON NV. Advisory arrangements involving affiliated sub-advisers may present certain potential conflicts of interest. For each fund sub-advised by TIM and AUIM, AEGON NV may indirectly benefit from the net advisory fee retained by TAM as well as from the sub-advisory fee paid by the TAM to TIM and AUIM. TAM has a fiduciary duty to act in the best interests of a fund and its shareholders (i) when recommending to the Board the appointment of or continued service of an affiliated sub-adviser for a fund and (ii) in the case of a fund that is sub-advised by both TIM and an unaffiliated sub-adviser, or both AUIM and an unaffiliated sub-adviser, when allocating fund assets among the fund’s sub-advisers. Moreover, TAM’s “manager of managers” exemptive order from the SEC requires fund shareholder approval of any sub-advisory agreement appointing an affiliated sub-adviser as the sub-adviser to a fund (in the case of a new fund, the initial sole shareholder of the fund, an affiliate of TAM, TIM, AUIM and AEGON NV, may provide this approval). The Independent Trustees are aware of and monitor these potential conflicts of interest.

Information about each Fund’s Portfolio Managers

Information regarding other accounts for which any portfolio manager is primarily responsible for the day-to-day management, a description of any material conflict of interest that may arise in connection with the portfolio manager’s management of the fund’s investments, the structure of, and method used to determine, the compensation of each portfolio manager and the dollar range of equity securities in the fund beneficially owned by each portfolio manager are provided in Appendix B of this SAI.

Portfolio Construction Manager

Morningstar Associates, LLC (“Morningstar Associates”) located at 22 West Washington Street, Chicago, IL 60602, serves as a portfolio construction manager and, as such, makes asset allocation and fund selection decisions for the Transamerica Asset Allocation — Conservative Portfolio, Transamerica Asset Allocation — Growth Portfolio, Transamerica Asset Allocation — Moderate Portfolio, Transamerica Asset Allocation — Moderate Growth Portfolio, Transamerica Multi-Manager International Portfolio, and Transamerica Multi-Manager Alternative Strategies Portfolio. For the fiscal years ended October 31, 2008, 2007, and 2006, TAM paid Morningstar Associates the following amounts:

	October 31
Fund Name	2008		2007		2006
Transamerica Asset Allocation — Conservative Portfolio	$	781,360	$	601,350	$	481,502
Transamerica Asset Allocation — Growth Portfolio	$	2,097,266	$	2,025,855	$	1,350,349
Transamerica Asset Allocation — Moderate Portfolio	$	2,089,670	$	1,928,773	$	1,503,844
Transamerica Asset Allocation — Moderate Growth Portfolio	$	3,704,481	$	3,494,376	$	2,478,118
Transamerica Multi-Manager Alternative Strategies Portfolio(1)	$	328,975	$	61,460		N/A
Transamerica Multi-Manager International Portfolio	$	425,974	$	284,952	$	50,848

(1) Transamerica Multi-Manager Alternative Strategies Portfolio commenced operations on December 28, 2006, and as such, there is historical information for the fiscal year ended October 31, 2006.

45

TAM compensates Morningstar Associates 0.10% of the average daily net assets of each fund, except for Transamerica Multi-Manager Alternative Strategies Portfolio, which receives 0.20% of the first $500 million of average daily net assets; 0.19% over $500 million up to $1 billion of average daily net assets; and 0.18% of average net assets over $1 billion. Compensation is paid on a monthly basis.

DISTRIBUTOR

Effective March 1, 2001, Transamerica Funds entered into an Underwriting Agreement with AFSG Securities Corporation (“AFSG”), located at 4333 Edgewood Rd. NE, Cedar Rapids, Iowa 52494, to act as the principal underwriter of the shares of the funds. On May 1, 2007, Transamerica Capital, Inc. (“TCI”), located at 4600 South Syracuse Street, Suite 1100, Denver, Colorado 80237, became principal underwriter and distributor of the shares of the funds. TCI is an affiliate of TAM and AFSG. The Underwriting Agreement will continue from year to year so long as its continuance is approved at least annually in the same manner as the investment advisory agreements discussed above. A discussion of TCI’s responsibilities and charges as principal underwriter of fund shares is set forth in each fund’s prospectus.

UNDERWRITING COMMISSION

	Commissions Received for the Period						Commissions Retained for the Period
	Ended October 31						Ended October 31
Fund Name	2008		2007		2006		2008		2007		2006
Transamerica AllianceBernstein International Value		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica American Century Large Company Value	$	0	$	0	$	4,696	$	0	$	0	$	721
Transamerica Asset Allocation — Conservative Portfolio	$	2,846,849	$	1,830,007	$	2,009,609	$	481,348	$	313,801	$	333,238
Transamerica Asset Allocation — Growth Portfolio	$	4,950,893	$	6,221,131	$	6,724,501	$	773,070	$	989,518	$	1,070,214
Transamerica Asset Allocation — Moderate Growth Portfolio	$	9,619,298	$	11,055,487	$	12,792,970	$	1,555,217	$	1,798,570	$	2,061,336
Transamerica Asset Allocation — Moderate Portfolio	$	5,192,761	$	5,077,344	$	5,777,262	$	856,228	$	841,679	$	947,137
Transamerica Balanced	$	64,623	$	74,631	$	94,715	$	10,062	$	11,642	$	14,460
Transamerica Bjurman, Barry Micro Emerging Growth(1)		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica BlackRock Global Allocation		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica BlackRock Large Cap Value		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica BlackRock Natural Resources(2)		N/A	$	0		N/A		N/A		N/A		N/A
Transamerica BNY Mellon Market Neutral Strategy(2)		N/A	$	0		N/A		N/A		N/A		N/A
Transamerica Clarion Global Real Estate Securities	$	0	$	0	$	6,332	$	0	$	0	$	963
Transamerica Convertible Securities	$	68,102	$	25,562	$	29,277	$	11,944	$	4,634	$	5,601
Transamerica Equity	$	408,325	$	543,912	$	196,551	$	61,859	$	82,373	$	29,743
Transamerica Evergreen Health Care	$	0	$	0	$	2,514	$	0	$	0	$	380
Transamerica Evergreen International Small Cap		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Federated Market Opportunity		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Flexible Income	$	35,634	$	38,362	$	30,257	$	7,038	$	7,671	$	5,646
Transamerica Growth Opportunities	$	76,457	$	99,174	$	171,989	$	11,928	$	15,265	$	25,669
Transamerica High Yield Bond	$	87,788	$	124,081	$	98,535	$	17,769	$	25,290	$	19,496
Transamerica Jennison Growth	$	0	$	0	$	10,100	$	0	$	0	$	1,413
Transamerica JPMorgan Core Bond(3)		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica JPMorgan International Bond		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica JPMorgan Mid Cap Value		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Legg Mason Partners All Cap	$	42,063	$	70,780	$	82,504	$	6,456	$	11,047	$	12,495
Transamerica Legg Mason Partners Investors Value(4)	$	0	$	0	$	4,167	$	0	$	0	$	741
Transamerica Loomis Sayles Bond(2)		N/A	$	0		N/A		N/A		N/A		N/A
Transamerica Marsico Growth	$	0	$	0	$	11,295	$	0	$	0	$	1,725

46

	Commissions Received for the Period						Commissions Retained for the Period
	Ended October 31						Ended October 31
Fund Name	2008		2007		2006		2008		2007		2006
Transamerica Marsico International Growth		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica MFS International Equity	$	0	$	0	$	9,036	$	0	$	0	$	1,525
Transamerica Money Market	$	0	$	0	$	12,415	$	0	$	0	$	579
Transamerica Multi-Manager Alternative Strategies Portfolio(5)	$	1,157,228	$	813,248		N/A	$	182,072	$	129,645		N/A
Transamerica Multi-Manager International Portfolio	$	837,540	$	1,477,318	$	1,161,970	$	131,791	$	228,132	$	183,521
Transamerica Neuberger Berman International		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Oppenheimer Developing Markets		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Oppenheimer Small- & Mid-Cap Value		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica PIMCO Real Return TIPS	$	0	$	0	$	1,591	$	0	$	0	$	305
Transamerica PIMCO Total Return	$	0	$	0	$	3,228	$	0	$	0	$	560
Transamerica Schroders International Small Cap(6)		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Science & Technology	$	26,488	$	12,690	$	14,620	$	4,167	$	1,966	$	2,209
Transamerica Short-Term Bond	$	33,313		N/A		N/A	$	6,425		N/A		N/A
Transamerica Small/Mid Cap Value	$	1,098,994	$	296,392	$	255,486	$	165,002	$	45,732	$	38,102
Transamerica Templeton Global	$	68,207	$	86,067	$	93,453	$	10,517	$	13,131	$	13,979
Transamerica Third Avenue Value(5)		N/A	$	0		N/A		N/A		N/A		N/A
Transamerica Thornburg International Value(7)		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica UBS Dynamic Alpha(2)		N/A	$	0		N/A		N/A		N/A		N/A
Transamerica UBS Large Cap Value		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Value Balanced	$	21,169	$	39,550	$	29,428	$	3,218	$	6,093	$	4,612
Transamerica Van Kampen Emerging Markets Debt		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Van Kampen Mid-Cap Growth		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Van Kampen Small Company Growth		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica WMC Emerging Markets(7)		N/A		N/A		N/A		N/A		N/A		N/A

	For the Period Ended October 31, 2008
	Net
	Underwriting		Compensation
	Discounts and		on Redemptions		Brokerage		Other
Fund Name	Commissions		& Repurchases		Commissions		Compensation
Transamerica AllianceBernstein International Value		N/A		N/A		N/A		N/A
Transamerica American Century Large Company Value	$	0	$	0	$	0	$	0
Transamerica Asset Allocation-Conservative Portfolio	$	481,348	$	484,281	$	0	$	(62,737	)
Transamerica Asset Allocation-Growth Portfolio	$	773,070	$	889,518	$	0	$	2,236,660
Transamerica Asset Allocation-Moderate Growth Portfolio	$	1,555,217	$	1,733,920	$	0	$	3,545,612
Transamerica Asset Allocation-Moderate Portfolio	$	856,228	$	879,045	$	0	$	1,766,278
Transamerica Balanced	$	10,062	$	49,345	$	0	$	520,825
Transamerica Bjurman, Barry Micro Emerging Growth(1)		N/A		N/A		N/A		N/A
Transamerica BlackRock Global Allocation		N/A		N/A		N/A		N/A
Transamerica BlackRock Large Cap Value		N/A		N/A		N/A		N/A
Transamerica BlackRock Natural Resources(2)		N/A		N/A		N/A		N/A
Transamerica BNY Mellon Market Neutral Strategy(2)		N/A		N/A		N/A		N/A
Transamerica Clarion Global Real Estate Securities	$	0	$	0	$	0	$	0
Transamerica Convertible Securities	$	11,944	$	14,090	$	0	$	3,249
Transamerica Equity	$	61,859	$	104,500	$	0	$	1,291,645
Transamerica Evergreen Health Care	$	0	$	0	$	0	$	0
Transamerica Evergreen International Small Cap		N/A		N/A		N/A		N/A
Transamerica Federated Market Opportunity		N/A		N/A		N/A		N/A
Transamerica Flexible Income	$	7,038	$	24,287	$	0	$	113,153

47

	For the Period Ended October 31, 2008
	Net
	Underwriting		Compensation
	Discounts and		on Redemptions		Brokerage		Other
Fund Name	Commissions		& Repurchases		Commissions		Compensation
Transamerica Growth Opportunities	$	11,928	$	30,356	$	0	$	325,017
Transamerica High Yield Bond	$	17,769	$	30,684	$	0	$	163,784
Transamerica Jennison Growth	$	0	$	0	$	0	$	0
Transamerica JPMorgan Core Bond(3)		N/A		N/A		N/A		N/A
Transamerica JPMorgan International Bond		N/A		N/A		N/A		N/A
Transamerica JPMorgan Mid Cap Value		N/A		N/A		N/A		N/A
Transamerica Legg Mason Partners All Cap	$	6,456	$	71,705	$	0	$	489,760
Transamerica Legg Mason Partners Investors Value(4)	$	0	$	0	$	0	$	0
Transamerica Loomis Sayles Bond(2)		N/A		N/A		N/A		N/A
Transamerica Marsico Growth	$	0	$	0	$	0	$	0
Transamerica Marsico International Growth		N/A		N/A		N/A		N/A
Transamerica MFS International Equity	$	0	$	0	$	0	$	0
Transamerica Money Market	$	0	$	141,100	$	0	$	267,990
Transamerica Multi-Manager Alternative Strategies Portfolio(5)	$	182,072	$	73,339	$	0	$	(6,179	)
Transamerica Multi-Manager International Portfolio	$	131,791	$	204,976	$	0	$	540,106
Transamerica Neuberger Berman International		N/A		N/A		N/A		N/A
Transamerica Oppenheimer Developing Markets		N/A		N/A		N/A		N/A
Transamerica Oppenheimer Small- & Mid-Cap Value		N/A		N/A		N/A		N/A
Transamerica PIMCO Real Return TIPS	$	0	$	0	$	0	$	0
Transamerica PIMCO Total Return	$	0	$	0	$	0	$	0
Transamerica Schroders International Small Cap(6)		N/A		N/A		N/A		N/A
Transamerica Science &Technology	$	4,167	$	3,014	$	0	$	30,133
Transamerica Short-Term Bond	$	6,425	$	864	$	0	$	(75	)
Transamerica Small/Mid Cap Value	$	165,002	$	136,288	$	0	$	(488,958	)
Transamerica Templeton Global	$	10,517	$	21,879	$	0	$	376,595
Transamerica Third Avenue Value(5)		N/A		N/A		N/A		N/A
Transamerica Thornburg International Value(7)		N/A		N/A		N/A		N/A
Transamerica UBS Dynamic Alpha(2)		N/A		N/A		N/A		N/A
Transamerica UBS Large Cap Value		N/A		N/A		N/A		N/A
Transamerica Value Balanced	$	3,218	$	12,237	$	0	$	121,500
Transamerica Van Kampen Emerging Market Debts		N/A		N/A		N/A		N/A
Transamerica Van Kampen Mid Cap Growth		N/A		N/A		N/A		N/A
Transamerica Van Kampen Small Company Growth		N/A		N/A		N/A		N/A
Transamerica WMC Emerging Markets(7)		N/A		N/A		N/A		N/A

(1)	Transamerica Bjurman, Barry Micro Emerging Growth was liquidated and dissolved on April 24, 2009.
(2)	Transamerica BlackRock Natural Resources, Transamerica Loomis Sayles Bond, Transamerica BNY Mellon Market Neutral Strategy and Transamerica UBS Dynamic Alpha commenced operations on January 3, 2007, and as such, there is no historical fee information for fiscal year ended October 31, 2006.
(3)	Transamerica JPMorgan Core Bond had not commenced operations prior to the date of this SAI, and as such, there is no historical fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.
(4)	Transamerica Legg Mason Partners Investors Value was liquidated and dissolved on April 3, 2009.
(5)	Transamerica Multi-Manager Alternative Strategies Portfolio and Transamerica Third Avenue Value commenced operations on December 28, 2006 and May 1, 2007, respectively, and as such, there is no historical fee information for the fiscal year ended October 31, 2006.
(6)	Transamerica Schroders International Small Cap commenced operations on March 1, 2008, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.
(7)	Transamerica Thornburg International Value and Transamerica WMC Emerging Markets commenced operations on September 15, 2008 and September 30, 2008, respectively, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.

ADMINISTRATIVE SERVICES

TAM is responsible for the supervision of all of the administrative functions, providing office space, and paying its allocable portion of the salaries, fees and expenses of all fund officers and of those trustees who are affiliated with TAM. The costs and expenses, including legal and accounting fees, filing fees and printing costs in connection with the formation of a fund and the preparation and filing of a fund’s initial registration statements under the 1933 Act and 1940 Act are also paid by the adviser. Transamerica Funds has entered into an Administrative Services Agreement (“Administrative Agreement”) with Transamerica Fund Services, Inc. (“TFS”), 570 Carillon Parkway, St. Petersburg, FL 33716, on behalf of each fund. Under the Administrative Agreement, TFS carries out and supervises all of the administrative functions of the funds and incurs expenses payable by Transamerica Funds related to such functions. On January 1, 2005, certain funds entered into an agreement wherein the funds would pay 0.02% of their daily net assets to TFS for such administrative services; effective January 1, 2006, this fee was reduced to 0.0125% for the Asset Allocation funds.

48

The administrative duties of TFS with respect to each fund include: providing the fund with office space, telephones, office equipment and supplies; paying the compensation of the fund’s officers for services rendered as such; supervising and assisting in preparation of annual and semi-annual reports to shareholders, notices of dividends, capital gain distributions and tax information; supervising compliance by the fund with the recordkeeping requirements under the 1940 Act and regulations thereunder and with the state regulatory requirements; maintaining books and records of the fund (other than those maintained by the fund’s custodian and transfer agent); preparing and filing tax returns and reports; monitoring and supervising relationships with the fund’s custodian and transfer agent; monitoring the qualifications of tax deferred retirement plans providing for investment in shares of each fund; authorizing expenditures and approving bills for payment on behalf of each fund; and providing executive, clerical and secretarial help needed to carry out its duties.

The funds paid the following administrative expenses for the fiscal years ended October 31, 2008, 2007, and 2006.

ADMINISTRATIVE FEES

Fund Name	2008		2007		2006
Transamerica AllianceBernstein International Value	$	91,810	$	85,695	$	43,072
Transamerica American Century Large Company Value	$	120,930	$	120,794	$	58,933
Transamerica Asset Allocation — Conservative Portfolio	$	97,670	$	75,169	$	66,062
Transamerica Asset Allocation — Growth Portfolio	$	262,158	$	253,232	$	183,028
Transamerica Asset Allocation — Moderate Growth Portfolio	$	463,060	$	436,797	$	336,817
Transamerica Asset Allocation — Moderate Portfolio	$	261,209	$	241,097	$	205,510
Transamerica Balanced	$	30,241	$	39,032	$	46,229
Transamerica Bjurman, Barry Micro Emerging Growth(1)	$	16,653	$	13,812	$	1,737
Transamerica BlackRock Global Allocation	$	98,728	$	93,847	$	60,057
Transamerica BlackRock Large Cap Value	$	113,215	$	113,374	$	89,869
Transamerica BlackRock Natural Resources(2)	$	29,987	$	18,714		N/A
Transamerica BNY Mellon Market Neutral Strategy(2)	$	24,450	$	17,156		N/A
Transamerica Clarion Global Real Estate Securities	$	65,948	$	69,376	$	50,207
Transamerica Convertible Securities	$	31,247	$	40,213	$	46,735
Transamerica Equity	$	309,405	$	343,716	$	130,627
Transamerica Evergreen Health Care	$	58,674	$	79,448	$	93,286
Transamerica Evergreen International Small Cap	$	102,352	$	107,597	$	82,985
Transamerica Federated Market Opportunity	$	14,220	$	10,690	$	14,002
Transamerica Flexible Income	$	71,596	$	73,481	$	55,036
Transamerica Growth Opportunities	$	53,760	$	64,442	$	74,975
Transamerica High Yield Bond	$	90,160	$	77,901	$	78,541
Transamerica Jennison Growth	$	41,684	$	30,746	$	26,680
Transamerica JPMorgan Core Bond(3)		N/A		N/A		N/A
Transamerica JPMorgan International Bond	$	160,717	$	141,564	$	75,803
Transamerica JPMorgan Mid Cap Value	$	45,972	$	52,747	$	45,572
Transamerica Legg Mason Partners All Cap	$	25,561	$	38,998	$	46,410
Transamerica Legg Mason Partners Investors Value(4)	$	13,597	$	17,502	$	21,028
Transamerica Loomis Sayles Bond(2)	$	128,082	$	40,563		N/A
Transamerica Marsico Growth	$	82,707	$	56,158	$	27,420
Transamerica Marsico International Growth	$	112,304	$	93,092	$	78,245
Transamerica MFS International Equity	$	5,850	$	6,282	$	9,098
Transamerica Money Market	$	41,095	$	34,490	$	27,861
Transamerica Multi-Manager Alternative Strategies Portfolio(5)	$	20,561	$	3,841		N/A
Transamerica Multi-Manager International Portfolio	$	53,247	$	35,619	$	6,405
Transamerica Neuberger Berman International	$	107,917	$	100,703	$	75,892
Transamerica Oppenheimer Developing Markets	$	117,802	$	96,831	$	55,736
Transamerica Oppenheimer Small- & Mid-Cap Value	$	35,681	$	27,180	$	3,682
Transamerica PIMCO Real Return TIPS	$	148,996	$	129,541	$	113,795
Transamerica PIMCO Total Return	$	117,365	$	94,493	$	44,096
Transamerica Schroders International Small Cap(6)	$	17,271		N/A		N/A
Transamerica Science & Technology	$	15,876	$	15,304	$	14,427
Transamerica Short-Term Bond	$	113,789	$	100,259	$	59,675
Transamerica Small/Mid Cap Value	$	147,176	$	116,641	$	108,440
Transamerica Templeton Global	$	36,011	$	51,277	$	60,668
Transamerica Third Avenue Value(5)	$	108,635	$	66,178		N/A
Transamerica Thornburg International Value(7)	$	2,168		N/A		N/A
Transamerica UBS Dynamic Alpha(2)	$	41,533	$	31,940		N/A
Transamerica UBS Large Cap Value	$	161,202	$	133,917	$	38,922
Transamerica Value Balanced	$	9,573	$	12,580	$	13,230

49

Fund Name	2008		2007		2006
Transamerica Van Kampen Emerging Markets Debt	$	69,641	$	66,166	$	71,814
Transamerica Van Kampen Mid-Cap Growth	$	25,568	$	17,423	$	9,240
Transamerica Van Kampen Small Company Growth	$	27,095	$	40,308	$	54,040
Transamerica WMC Emerging Markets(7)	$	1,292		N/A		N/A

(1)	Transamerica Bjurman, Barry Micro Emerging Growth was liquidated and dissolved on April 24, 2009.
(2)	Transamerica BlackRock Natural Resources, Transamerica Loomis Sayles Bond, Transamerica BNY Mellon Market Neutral Strategy and Transamerica UBS Dynamic Alpha commenced operations on January 3, 2007, and as such, there is no historical fee information for fiscal year ended October 31, 2006.
(3)	Transamerica JPMorgan Core Bond had not commenced operations prior to the date of this SAI, and as such, there is no historical fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.
(4)	Transamerica Legg Mason Partners Investors Value was liquidated and dissolved on April 3, 2009.
(5)	Transamerica Multi-Manager Alternative Strategies Portfolio and Transamerica Third Avenue Value commenced operations on December 28, 2006 and May 1, 2007, respectively, and as such, there is no historical fee information for the fiscal year ended October 31, 2006.
(6)	Transamerica Schroders International Small Cap commenced operations on March 1, 2008, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.
(7)	Transamerica Thornburg International Value and Transamerica WMC Emerging Markets commenced operations on September 15, 2008 and September 30, 2008, respectively, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.

CUSTODIAN, TRANSFER AGENT AND OTHER AFFILIATES

State Street Bank and Trust Company (“State Street”), 225 Franklin Street, Boston, MA 02110, is custodian for Transamerica Funds. The custodian is not responsible for any of the investment policies or decisions of a fund, but holds its assets in safekeeping, and collects and remits the income thereon subject to the instructions of the funds.

TFS, 570 Carillon Parkway, St. Petersburg, FL 33716, is the transfer agent, withholding agent and dividend disbursing agent for each fund. TFS is directly owned by Western Reserve (44%) and AUSA (56%), both of which are indirect, wholly owned subsidiaries of AEGON N.V.; and thus TFS is an affiliate of TAM. Each fund pays the transfer agent an annual per-account charge of $19.60 for each Open Account and $1.50 for each Closed Account. There is no new account charge.

Transaction requests should be mailed to Transamerica Funds, P.O. Box 219945, Kansas City, MO 64121-9945 or Transamerica Funds, 330 W. 9^th Street, Kansas City, MO 64105 (for overnight mail).

There were no brokerage credits received for the periods ended October 31, 2008. 2007, and 2006.

TRANSFER AGENCY FEES
(Fees and Expenses Net of Brokerage Credits)

Fund Name	2008		2007		2006
Transamerica AllianceBernstein International Value	$	159	$	0	$	213
Transamerica American Century Large Company Value	$	59,490	$	74,759	$	103,367
Transamerica Asset Allocation — Conservative Portfolio	$	706,727	$	507,653	$	414,752
Transamerica Asset Allocation — Growth Portfolio	$	2,807,434	$	2,404,147	$	1,807,389
Transamerica Asset Allocation — Moderate Growth Portfolio	$	3,893,286	$	3,393,891	$	2,699,768
Transamerica Asset Allocation — Moderate Portfolio	$	1,829,171	$	1,555,838	$	1,325,009
Transamerica Balanced	$	406,957	$	468,947	$	562,219
Transamerica Bjurman, Barry Micro Emerging Growth(1)	$	160	$	0	$	0
Transamerica BlackRock Global Allocation	$	175	$	43	$	149
Transamerica BlackRock Large Cap Value	$	160	$	2	$	164
Transamerica BlackRock Natural Resources(2)	$	169	$	0		N/A
Transamerica BNY Mellon Market Neutral Strategy(2)	$	135	$	0		N/A
Transamerica Clarion Global Real Estate Securities	$	26,085	$	36,005	$	49,211
Transamerica Convertible Securities	$	35,891	$	24,356	$	26,428
Transamerica Equity	$	2,282,929	$	2,675,279	$	719,912
Transamerica Evergreen Health Care	$	21,040	$	26,275	$	38,816
Transamerica Evergreen International Small Cap	$	320	$	292	$	124
Transamerica Federated Market Opportunity	$	171	$	44	$	150
Transamerica Flexible Income	$	92,187	$	112,696	$	152,736
Transamerica Growth Opportunities	$	662,480	$	748,093	$	885,941
Transamerica High Yield Bond	$	98,678	$	119,387	$	144,839
Transamerica Jennison Growth	$	89,122	$	111,574	$	158,848
Transamerica JPMorgan Core Bond(3)		N/A		N/A		N/A
Transamerica JPMorgan International Bond	$	162	$	0	$	284
Transamerica JPMorgan Mid Cap Value	$	198	$	2	$	0
Transamerica Legg Mason Partners All Cap	$	419,094	$	516,776	$	615,489

50

Fund Name	2008		2007			2006
Transamerica Legg Mason Partners Investors Value(4)	$	61,213	$	77,092		$	99,395
Transamerica Loomis Sayles Bond(2)	$	172	$	0			N/A
Transamerica Marsico Growth	$	62,937	$	77,672		$	112,359
Transamerica Marsico International Growth	$	322	$	302		$	37
Transamerica MFS International Equity	$	103,399	$	126,065		$	164,181
Transamerica Money Market	$	401,576	$	384,177		$	376,012
Transamerica Multi-Manager Alternative Strategies Portfolio(5)	$	203,892	$	37,264			N/A
Transamerica Multi-Manager International Portfolio	$	616,792	$	368,479		$	75,694
Transamerica Neuberger Berman International	$	159	$	0		$	184
Transamerica Oppenheimer Developing Markets	$	159	$	0		$	186
Transamerica Oppenheimer Small- & Mid-Cap Value	$	160	$	0		$	0
Transamerica PIMCO Real Return TIPS	$	11,567	$	15,848		$	26,315
Transamerica PIMCO Total Return	$	39,927	$	50,807		$	70,620
Transamerica Schroders International Small Cap(6)	$	169		N/A			N/A
Transamerica Science & Technology	$	58,332	$	61,339		$	78,403
Transamerica Short-Term Bond	$	2,554	$	292		$	137
Transamerica Small/Mid Cap Value	$	681,796	$	293,969		$	275,381
Transamerica Templeton Global	$	710,191	$	791,301		$	941,571
Transamerica Third Avenue Value(5)	$	200	$	0			N/A
Transamerica Thornburg International Value(7)	$	42		N/A			N/A
Transamerica UBS Dynamic Alpha(2)	$	137	$	0			N/A
Transamerica UBS Large Cap Value	$	318	$	288		$	0
Transamerica Value Balanced	$	139,970	$	166,723		$	198,182
Transamerica Van Kampen Emerging Markets Debt	$	282	$	255		$	355
Transamerica Van Kampen Mid-Cap Growth	$	162	$	(8	)	$	133
Transamerica Van Kampen Small Company Growth	$	318	$	291		$	233
Transamerica WMC Emerging Markets(7)	$	42		N/A			N/A

(1)	Transamerica Bjurman, Barry Micro Emerging Growth was liquidated and dissolved on April 24, 2009.
(2)	Transamerica BlackRock Natural Resources, Transamerica Loomis Sayles Bond, Transamerica BNY Mellon Market Neutral Strategy and Transamerica UBS Dynamic Alpha commenced operations on January 3, 2007, and as such, there is no historical fee information for fiscal year ended October 31, 2006.
(3)	Transamerica JPMorgan Core Bond had not commenced operations prior to the date of this SAI, and as such, there is no historical fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.
(4)	Transamerica Legg Mason Partners Investors Value was liquidated and dissolved on April 3, 2009.
(5)	Transamerica Multi-Manager Alternative Strategies Portfolio and Transamerica Third Avenue Value commenced operations on December 28, 2006 and May 1, 2007, respectively, and as such, there is no historical fee information for the fiscal year ended October 31, 2006.
(6)	Transamerica Schroders International Small Cap commenced operations on March 1, 2008, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.
(7)	Transamerica Thornburg International Value and Transamerica WMC Emerging Markets commenced operations on September 15, 2008 and September 30, 2008, respectively, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.

FUND TRANSACTIONS AND BROKERAGE

Decisions as to the assignment of fund business for each of the funds and negotiation of commission rates are made by a fund’s sub-adviser, whose policy is to seek to obtain the “best execution” of all fund transactions. The Investment Advisory Agreement and Sub-Advisory Agreement for each fund specifically provide that in placing portfolio transactions for a fund, the fund’s sub-adviser may agree to pay brokerage commissions for effecting a securities transaction in an amount higher than another broker or dealer would have charged for effecting that transaction as authorized, under certain circumstances, by the Securities Exchange Act of 1934, as amended (the “1934 Act”).

In selecting brokers and dealers and in negotiating commissions, a fund’s sub-adviser may consider a number of factors, including but not limited to:

• The sub-adviser’s knowledge of currently available negotiated commission rates or prices of securities and other current transaction costs;

• The nature of the security being traded;

• The size and type of the transaction;

• The nature and character of the markets for the security to be purchased or sold;

• The desired timing of the trade;

• The activity existing and expected in the market for the particular security;

• The quality of the execution, clearance and settlement services;

51

• Financial stability;

• The existence of actual or apparent operational problems of any broker or dealer; and

• Research products and services provided.

In recognition of the value of the foregoing factors, the sub-adviser may place portfolio transactions with a broker with whom it has negotiated a commission that is in excess of the commission another broker would have charged for effecting that transaction. This is done if the sub-adviser determines in good faith that such amount of commission was reasonable in relation to the value of the brokerage and research provided by such broker viewed in terms of either that particular transaction or of the overall responsibilities of the sub-adviser. Research provided may include:

• Furnishing advice, either directly or through publications or writings, as to the value of securities, the advisability of purchasing or selling specific securities and the availability of securities or purchasers or sellers of securities;

• Furnishing seminars, information, analyses and reports concerning issuers, industries, securities, trading markets and methods, legislative developments, changes in accounting practices, economic factors and trends and portfolio strategy;

• Access to research analysts, corporate management personnel, industry experts, economists and government officials; and

• Comparative performance evaluation and technical measurement services and quotation services, and other services (such as third party publications, reports and analyses, and computer and electronic access, equipment, software, information and accessories that deliver process or otherwise utilize information, including the research described above) that assist the sub-adviser in carrying out its responsibilities.

Most of the brokers and dealers used by the funds’ sub-advisers provide research and other services described above.

A sub-adviser may use research products and services in servicing other accounts in addition to the funds. If a sub-adviser determines that any research product or service has a mixed use, such that it also serves functions that do not assist in the investment decision-making process, a sub-adviser may allocate the costs of such service or product accordingly. The portion of the product or service that a sub-adviser determines will assist it in the investment decision-making process may be paid for in brokerage commission dollars. Such allocation may be a conflict of interest for a sub-adviser.

When a fund purchases or sells a security in the over-the-counter market, the transaction takes place directly with a principal market-maker without the use of a broker, except in those circumstances where better prices and executions will be achieved through the use of a broker.

A sub-adviser may place transactions for the purchase or sale of portfolio securities with affiliates of TAM, TCI or the sub-adviser, including InterSecurities, Inc., AEGON USA Securities, Inc. or DST Securities, Inc. A sub-adviser may place transactions if it reasonably believes that the quality of the transaction and the associated commission are fair and reasonable, and if overall the associated transaction costs, net of any credits described above under “Custodian, Transfer Agent and Other Affiliates,” are lower than those that would otherwise be incurred. Under rules adopted by the SEC, The funds’ Board of Trustees will conduct periodic compliance reviews of such brokerage allocations and review certain procedures adopted by the Board of Trustees to ensure compliance with these rules and to determine their continued appropriateness.

DIRECTED BROKERAGE

A sub-adviser to a fund, to the extent consistent with the best execution and with TAM’s usual commission rate policies and practices, may place portfolio transactions of the fund with broker/dealers with which the fund has established a Directed Brokerage Program. A Directed Brokerage Program is any arrangement under which a broker/dealer applies a portion of the commissions received by such broker/dealer on the fund’s portfolio transactions to the payment of operating expenses that would otherwise be borne by the fund. These commissions are not used for promoting or selling fund shares or otherwise related to the distribution of fund shares.

	Brokerage Commissions Paid
	(Including Affiliated Brokerage)
	October 31						Affiliated Brokerage Paid October 31
Fund Name	2008		2007		2006		2008		2007		2006
Transamerica AllianceBernstein International Value	$	252,118	$	261,188	$	349,165	$	0	$	0	$	0
Transamerica American Century Large Company Value	$	150,331	$	137,364	$	79,857	$	5,502	$	0	$	60
Transamerica Asset Allocation – Conservative Portfolio		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Asset Allocation – Growth Portfolio		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Asset Allocation – Moderate Growth Portfolio		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Asset Allocation – Moderate Portfolio		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Balanced	$	71,908	$	89,309	$	75,348	$	0	$	0	$	0

52

	Brokerage Commissions Paid
	(Including Affiliated Brokerage)
	October 31						Affiliated Brokerage Paid October 31
Fund Name	2008		2007		2006		2008		2007		2006
Transamerica Bjurman, Barry Micro Emerging Growth(1)	$	204,429	$	271,614	$	108,102	$	0	$	0	$	0
Transamerica BlackRock Global Allocation	$	436,026	$	311,536	$	338,444	$	6,069	$	19,549	$	32,278
Transamerica BlackRock Large Cap Value	$	173,922	$	139,966	$	106,833	$	0	$	0	$	85
Transamerica BlackRock Natural Resources(2)	$	12,968	$	73,023		N/A	$	1,783	$	876		N/A
Transamerica BNY Mellon Market Neutral Strategy(2)	$	567,894	$	211,174		N/A	$	0	$	0		N/A
Transamerica Clarion Global Real Estate Securities	$	432,618	$	633,427	$	636,903	$	0	$	0	$	0
Transamerica Convertible Securities	$	30,501	$	17,196	$	15,262	$	0	$	0	$	0
Transamerica Equity	$	835,453	$	1,694,741	$	470,105	$	0	$	0	$	0
Transamerica Evergreen Health Care	$	461,809	$	938,148	$	805,438	$	0	$	0	$	0
Transamerica Evergreen International Small Cap	$	1,657,395	$	1,247,599	$	1,033,827	$	0	$	0	$	0
Transamerica Federated Market Opportunity	$	387,820	$	97,323	$	83,066	$	0	$	0	$	0
Transamerica Flexible Income	$	12,858	$	200	$	0	$	0	$	0	$	0
Transamerica Growth Opportunities	$	309,171	$	524,311	$	465,423	$	0	$	0	$	0
Transamerica High Yield Bond	$	0	$	0	$	0	$	0	$	0	$	0
Transamerica Jennison Growth	$	312,255	$	182,249	$	197,574	$	0	$	108	$	1,054
Transamerica JPMorgan Core Bond(3)		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica JPMorgan International Bond	$	58,722	$	0	$	0	$	0	$	0	$	0
Transamerica JPMorgan Mid-Cap Value	$	180,106	$	185,623	$	162,310	$	0	$	0	$	0
Transamerica Legg Mason Partners All Cap	$	117,689	$	96,197	$	323,999	$	0	$	0	$	378
Transamerica Legg Mason Partners Investors Value(4)	$	47,296	$	32,280	$	123,339	$	0	$	0	$	0
Transamerica Loomis Sayles Bond(2)	$	2,097	$	1,080		N/A	$	0	$	0		N/A
Transamerica Marsico Growth	$	404,214	$	236,722	$	127,736	$	0	$	0	$	0
Transamerica Marsico International Growth	$	1,667,169	$	1,333,417	$	1,338,054	$	0	$	0	$	0
Transamerica MFS International Equity	$	57,478	$	40,072	$	162,427	$	0	$	0	$	2,841
Transamerica Money Market		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Multi-Manager Alternative Strategies Portfolio (5)		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Multi-Manager International Portfolio		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Neuberger Berman International Portfolio	$	1,136,559	$	755,086	$	772,003	$	41,986	$	45,303	$	67,838
Transamerica Oppenheimer Developing Markets	$	1,191,683	$	1,052,005	$	1,191,691	$	0	$	0	$	0
Transamerica Oppenheimer Small & Mid-Cap Value	$	343,102	$	311,582	$	88,955	$	0	$	0	$	0
Transamerica PIMCO Real Return TIPS	$	21,441	$	9,866	$	5,444	$	0	$	0	$	0
Transamerica PIMCO Total Return	$	30,968	$	22,652	$	5,314	$	0	$	0	$	0
Transamerica Schroders International Small Cap(6)	$	527,243		N/A		N/A	$	0		N/A		N/A
Transamerica Science & Technology	$	89,723	$	111,971	$	201,070	$	0	$	0	$	0
Transamerica Short-Term Bond	$	1,480	$	0	$	0	$	0	$	0	$	0
Transamerica Small/Mid-Cap Value	$	1,445,450	$	505,365	$	462,359	$	0	$	0	$	0
Transamerica Templeton Global	$	117,445	$	167,715	$	531,296	$	0	$	0	$	0
Transamerica Third Avenue Value(5)	$	466,796	$	172,422		N/A	$	245,895	$	103,142		N/A
Transamerica Thornburg International Value(7)	$	41,631		N/A		N/A	$	0		N/A		N/A
Transamerica UBS Dynamic Alpha(2)	$	324,735	$	217,960		N/A	$	10,003	$	914		N/A
Transamerica UBS Large Cap Value	$	927,076	$	498,160	$	123,945	$	16,525	$	4,944	$	605
Transamerica Value Balanced	$	45,136	$	38,206	$	38,093	$	0	$	0	$	0
Transamerica Van Kampen Emerging Markets Debt	$	1,529	$	0	$	0	$	0	$	0	$	0
Transamerica Van Kampen Mid-Cap Growth	$	116,752	$	101,667	$	72,658	$	3,663	$	1,957	$	24

53

	Brokerage Commissions Paid
	(Including Affiliated Brokerage)
	October 31						Affiliated Brokerage Paid October 31
Fund Name	2008		2007		2006		2008		2007		2006
Transamerica Van Kampen Small Company Growth	$	172,762	$	369,573	$	579,434	$	0	$	14	$	9,395
Transamerica WMC Emerging Markets(7)	$	99,603		N/A		N/A	$	0		N/A		N/A

The following table provides brokerage commissions that were directed to brokers for brokerage and research services provided during the fiscal year ended October 31, 2008.

Fund Name	Paid as of October 31, 2008
Transamerica AllianceBernstein International Value	$	111,273
Transamerica American Century Large Company Value	$	77,980
Transamerica Asset Allocation – Conservative Portfolio	$	—
Transamerica Asset Allocation – Growth Portfolio	$	—
Transamerica Asset Allocation – Moderate Growth Portfolio	$	—
Transamerica Asset Allocation – Moderate Portfolio	$	—
Transamerica Balanced	$	56,389
Transamerica Bjurman, Barry Micro Emerging Growth(1)	$	45,022
Transamerica BlackRock Global Allocation	$	228,715
Transamerica BlackRock Large Cap Value	$	12,440
Transamerica BlackRock Natural Resources(2)	$	11,633
Transamerica BNY Mellon Market Neutral Strategy(2)	$	326,286
Transamerica Clarion Global Real Estate Securities	$	342,197
Transamerica Convertible Securities	$	25,467
Transamerica Equity	$	636,582
Transamerica Evergreen Health Care	$	264,861
Transamerica Evergreen International Small Cap	$	1,210,081
Transamerica Federated Market Opportunity	$	148,568
Transamerica Flexible Income	$	17,000
Transamerica Growth Opportunities	$	202,084
Transamerica High Yield Bond	$	—
Transamerica Jennison Growth	$	196,025
Transamerica JPMorgan Core Bond(3)		N/A
Transamerica JPMorgan International Bond	$	—
Transamerica JPMorgan Mid Cap Value	$	76,184
Transamerica Legg Mason Partners All Cap	$	67,186
Transamerica Legg Mason Partners Investors Value(4)	$	36,866
Transamerica Loomis Sayles Bond(2)	$	1,315
Transamerica Marsico Growth	$	302,743
Transamerica Marsico International Growth	$	1,141,428
Transamerica MFS International Equity	$	36,599
Transamerica Money Market	$	—
Transamerica Multi-Manager Alternative Strategies Portfolio(5)	$	—
Transamerica Multi-Manager International Portfolio	$	—
Transamerica Neuberger Berman International	$	844,400
Transamerica Oppenheimer Developing Markets	$	901,805
Transamerica Oppenheimer Small & MidCap Value	$	179,131
Transamerica PIMCO Real Return TIPS	$	—
Transamerica PIMCO Total Return	$	—
Transamerica Schroders International Small Cap(6)	$	128,768
Transamerica Science & Technology	$	77,788
Transamerica Short-Term Bond	$	—
Transamerica Small/Mid Cap Value	$	1,128,203
Transamerica Templeton Global	$	85,936
Transamerica Third Avenue Value(5)	$	320,972
Transamerica Thornburg International Value(7)	$	11,572
Transamerica UBS Dynamic Alpha(2)	$	106,260
Transamerica UBS Large Cap Value	$	260,272
Transamerica Value Balanced	$	37,769
Transamerica Van Kampen Emerging Markets Debt	$	—
Transamerica Van Kampen Mid-Cap Growth	$	75,451
Transamerica Van Kampen Small Company Growth	$	38,510
Transamerica WMC Emerging Markets(7)	$	74,700

54

	The estimates above are based upon custody data provided to CAPIS using the following methodology: Total Commissions minus transactions executed at discounted rates and/or directed to the funds’ commission recapture program equals total research commissions. USD transactions executed at $.02 and below and non-USD transactions executed at 8 basis points and below are considered to be executed at discounted rates. For example, Commission paid on USD transactions at rates greater than $.02 per share and not directed for commission recapture are assumed to be paid to brokers that provide research and brokerage services within the scope of Section 28(e) of the Securities and Exchange Act of 1934.
(1)	Transamerica Bjurman, Barry Micro Emerging Growth was liquidated and dissolved on April 24, 2009.
(2)	Transamerica BlackRock Natural Resources, Transamerica Loomis Sayles Bond, Transamerica BNY Mellon Market Neutral Strategy and Transamerica UBS Dynamic Alpha commenced operations on January 3, 2007, and as such, there is no historical fee information for fiscal year ended October 31, 2006.
(3)	Transamerica JPMorgan Core Bond had not commenced operations prior to the date of this SAI, and as such, there is no historical fee information for the fiscal years ended October 31, 2006, October 31, 2007 and October 31, 2008.
(4)	Transamerica Legg Mason Partners Investors Value was liquidated and dissolved on April 3, 2009.
(5)	Transamerica Multi-Manager Alternative Strategies Portfolio and Transamerica Third Avenue Value commenced operations on December 28, 2006 and May 1, 2007, respectively, and as such, there is no historical fee information for the fiscal year ended October 31, 2006.
(6)	Transamerica Schroders International Small Cap commenced operations on March 1, 2008, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.
(7)	Transamerica Thornburg International Value and Transamerica WMC Emerging Markets commenced operations on September 15, 2008 and September 30, 2008, respectively, and as such, there is no historical fee information for fiscal years ended October 31, 2007 and October 31, 2006.

55

BOARD MEMBERS AND OFFICERS

The Board Members and executive officers of the Trust are listed below. 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 the Trust 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 Asset Management Group”). Transamerica Asset Management Group (“TAMG”) consists of Transamerica Funds, Transamerica Series Trust (“TST”), Transamerica Investors, Inc. (“TII”), 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 184 funds as of the date of this SAI.

The mailing address of each Board Member is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716. The Board Members, their ages, their positions with the Trust, and their principal occupations for the past five years (their titles may have varied during that period), the number of funds in TAMG the Board oversees, and other board memberships they hold are set forth in the table below.

				Number of
				Funds in
		Term of		Complex
		Office and		Overseen by
	Position(s) Held	Length of	Principal Occupation(s) During	Board		Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member		Directorships
INTERESTED BOARD MEMBER**
John K. Carter (1961)	Chairman, Board Member, President, and Chief Executive Officer	Since 1999	Chairman and Board Member (2008 – present), President (2007 – present), Chief Executive Officer (2006 – present), Vice President, Secretary and Chief Compliance Officer (2003 – 2006), TII;		184	N/A
			Chairman, Board Member, President and Chief Executive Officer, TPP, TPFG, TPFG II and TAAVF (2007 – present);
			Chairman (2007 – present), Board Member (2006 – present), President and Chief Executive Officer (2006 – present), Senior Vice President (1999 – 2006), Chief Compliance Officer, General Counsel and Secretary (1999 – 2006), Transamerica Funds and TST;
			Chairman (2007 – present), Board Member (2006 – present), President and Chief Executive Officer (2006 – present), Senior Vice President (2002 – 2006), General Counsel, Secretary and Chief Compliance Officer (2002 – 2006), TIS;
			President and Chief Executive Officer (2006 – present), Senior Vice President (1999 – 2006), Director (2000 – present), General Counsel and Secretary (2000 – 2006), Chief Compliance Officer (2004 – 2006), TAM;

56

				Number of
				Funds in
		Term of		Complex
		Office and		Overseen by
	Position(s) Held	Length of	Principal Occupation(s) During	Board		Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member		Directorships
			President and Chief Executive Officer (2006 – present), Senior Vice President (1999 – 2006), Director (2001 – present), General Counsel and Secretary (2001 – 2006), Transamerica Fund Services, Inc. (“TFS”);
			Vice President, AFSG Securities Corporation (2001 –present);
			Senior Vice President, General Counsel and Secretary, Transamerica Index Funds, Inc. (“TIF”) (2002 – 2004); and
			Director, (2008 – present), Vice President, Transamerica Investment Services, Inc. (“TISI”) (2003 – 2005) and Transamerica Investment Management, LLC (“TIM”) (2001 – 2005).
INDEPENDENT BOARD MEMBERS***
Sandra N. Bane (1952)	Board Member	Since 2008	Retired, KPMG (1999 – present); Board Member, TII (2003 – present); and Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2008 – present).		184	Big 5 Sporting Goods (2002 – present); AGL Resources, Inc. (energy services holding company) (2008 – present)
Leo J. Hill (1956)	Lead Independent Board Member	Since 2002	Principal, Advisor Network Solutions, LLC (business consulting) (2006 – present);		184	NA
			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 – present);
			Owner and President, Prestige Automotive Group (2001 – 2005);

57

				Number of
				Funds in
		Term of		Complex
		Office and		Overseen by
	Position(s) Held	Length of	Principal Occupation(s) During	Board		Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member		Directorships
			President, L. J. Hill & Company (1999 – present);
			Market President, Nations Bank of Sun Coast Florida (1998 – 1999);
			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).
Neal M. Jewell (1935)	Board Member	Since 2007	Retired (2004 – present);		184	N/A
			Board Member, TPP, TPFG, TPFG II and TAAVF (1993 – present);
			Board Member, Transamerica Funds, TST and TIS (2007 – present);
			Board Member, TII (2008 — present); and
			Independent Trustee, EAI Select Managers Equity Fund (a mutual fund) (1996 – 2004).
Russell A. Kimball, Jr. (1944)	Board Member	1986 – 1990 and 2002 – Present	General Manager, Sheraton Sand Key Resort (1975 – present);		184	NA
			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 – present).

58

				Number of
				Funds in
		Term of		Complex
		Office and		Overseen by
	Position(s) Held	Length of	Principal Occupation(s) During	Board		Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member		Directorships
Eugene M. Mannella (1954)	Board Member	Since 2007	Chief Executive Officer, HedgeServ Corporation (hedge fund administration) (2008 – present);		184	N/A
			Self-employed consultant (2006 – present);
			President, ARAPAHO Partners LLC (limited purpose broker-dealer) (1998 – 2008);
			Board Member, TPP, TPFG, TPFG II and TAAVF (1994 – present);
			Board Member, Transamerica Funds, TST and TIS (2007 – present);
			Board Member, TII (2008 – present); and
			President, International Fund Services (alternative asset administration) (1993 – 2005).
Norman R. Nielsen (1939)	Board Member	Since 2006	Retired (2005 – present); Board Member, Transamerica Funds, TST and TIS (2006 – present); Board Member, TPP, TPFG, TPFG II and TAAVF (2007 – present);		184	Buena Vista University Board of Trustees (2004 — present)
			Board Member, TII (2008 – present);
			Director, 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 (1987 – 2006); and
			President, Kirkwood Community College (1985 – 2005).

59

				Number of
				Funds in
		Term of		Complex
		Office and		Overseen by
	Position(s) Held	Length of	Principal Occupation(s) During	Board		Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member		Directorships
Joyce G. Norden (1939)	Board Member	Since 2007	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);		184	Board of Governors, Reconstructionist Rabbinical College (2007 - present)
			Board Member, TII (2008 – present); and
			Vice President, Institutional Advancement, Reconstructionist Rabbinical College (1996 – 2004).
Patricia L. Sawyer (1950)	Board Member	Since 2007	Retired (2007 – present);		184	N/A
			President/Founder, Smith & Sawyer LLC (management consulting) (1989 – 2007);
			Board Member, Transamerica Funds, TST and TIS (2007 – present);
			Board Member, TII (2008 – present);
			Board Member, TPP, TPFG, TPFG II and TAAVF (1993 – present);
			Vice President, American Express (1987 – 1989);
			Vice President, The Equitable (1986 – 1987); and
			Strategy Consultant, Booz, Allen & Hamilton (1982 – 1986).

60

				Number of
				Funds in
		Term of		Complex
		Office and		Overseen by
	Position(s) Held	Length of	Principal Occupation(s) During	Board		Other
Name and Age	with Trust	Time Served*	Past 5 Years	Member		Directorships
John W. Waechter (1952)	Board Member	Since 2005	Attorney, Englander & Fischer, P.A. (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);		184	Operation Par, Inc. (2008 – present); West Central Florida Council – Boy Scouts of America (2008 – present)
			Board Member, TII (2008 – present);
			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).

*	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.
**	May be deemed an “interested person” (as that term is defined in the 1940 Act) of the Trust because of his employment with TAM or an affiliate of TAM.
***	Independent Board Member means a Board Member who is not an “interested person” (as defined under the 1940 Act) of the Trust.

61

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 ages, their positions held with the 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.

		Term of Office and
		Length of Time	Principal Occupation(s) or
Name and Age	Position	Served*	Employment During Past 5 Years
John K. Carter (1961)	Chairman, Board Member, President, and Chief Executive Officer	Since 1999	See the table above.
Dennis P. Gallagher (1970)	Vice President, General Counsel and Secretary	Since 2006	Vice President, General Counsel and Secretary, TII, Transamerica Funds, TST and TIS (2006 – present); Vice President, General Counsel and Secretary, TPP, TPFG, TPFG II and TAAVF (2007 – present);
			Director, Senior Vice President, General Counsel and Secretary, TAM and TFS (2006 – present);
			Assistant Vice President, TCI (2007 – present); and Director, Deutsche Asset Management (1998 – 2006).
Joseph P. Carusone (1965)	Vice President, Treasurer and Principal Financial Officer	Since 2007	Vice President, Treasurer and Principal Financial Officer, Transamerica Funds, TST, TIS and TII (2007 – present); Vice President (2007 – present), Treasurer and Principal Financial Officer (2001 – present), TPP, TPFG, TPFG II and TAAVF;
			Senior Vice President, TAM and TFS (2007 – present);
			Senior Vice President (2008 – present), Vice President (2001 – 2008); Diversified Investment Advisors, Inc. (“DIA”);
			Director and President, Diversified Investors Securities Corp. (“DISC”) (2007 – present);
			Director, Transamerica Financial Life Insurance Company (“TFLIC”) (2004 – present); and
			Treasurer, Diversified Actuarial Services, Inc. (2002 – present).

62

		Term of Office and
		Length of Time	Principal Occupation(s) or
Name and Age	Position	Served*	Employment During Past 5 Years
Christopher A. Staples (1970)	Vice President and Chief Investment Officer	Since 2005	Vice President and Chief Investment Officer (2007 – present); Vice President — Investment Administration (2005 – 2007), TII; Vice President and Chief Investment Officer (2007 – present), Senior Vice President — Investment Management (2006 – 2007), Vice President - Investment Management (2005 – 2006),
			Transamerica Funds, TST and TIS;
			Vice President and Chief Investment Officer, TPP, TPFG, TPFG II and TAAVF (2007 – present);
			Director (2005 – present), Senior Vice President – Investment Management (2006 – present) and Chief Investment Officer (2007 – present), TAM;
			Director, TFS (2005 – present); and
			Assistant Vice President, Raymond James & Associates (1999 – 2004).
Rick B. Resnik (1967)	Vice President, Chief Compliance Officer and Conflicts of Interest Officer	Since 2008	Chief Compliance Officer, TPP, TPFG, TPFG II and TAAVF (2004 – present); Chief Compliance Officer, Transamerica Funds, TST, TIS and TII (2008 – present); Vice President and Conflicts of Interest Officer, TPP, TPFG, TPFG II, TAAVF, Transamerica Funds, TST, TIS and TII (2008 – present);
			Senior Vice President and Chief Compliance Officer, TAM (2008 – present);
			Senior Vice President, TFS (2008 – present);
			Vice President and Chief Compliance Officer, DIA (2004 — present); with DIA since 1988;
			Director (1999 – present), Vice President and Chief Compliance Officer (1996 – present), DISC;
			Assistant Vice President, TFLIC (1999 – present); and
			Chief Compliance Officer, Transamerica Partners Variable Funds (2004 - present).

63

		Term of Office and
		Length of Time	Principal Occupation(s) or
Name and Age	Position	Served*	Employment During Past 5 Years
Robert A. DeVault, Jr. (1965)	Assistant Treasurer	Since 2009	Assistant Treasurer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (January 2009 – present); and
			Assistant Vice President (2007 – present) and Manager, Fund Administration, (2002 – 2007), TFS.
Suzanne Valerio- Montemurro (1964)	Assistant Treasurer	Since 2007	Assistant Treasurer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (2007 – present); and Vice President, DIA (1998 – present).
Sarah L. Bertrand (1967)	Assistant Secretary	Since 2009	Assistant Secretary, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (January 2009 – present);
			Assistant Vice President and Manager, 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).
Timothy J. Bresnahan (1968)	Assistant Secretary	Since 2009	Assistant Secretary, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (January 2009 – present);
			Counsel, TAM (2008 – present);
			Counsel (contract), Massachusetts Financial Services, Inc. (2007);
			Assistant Counsel, BISYS Fund Services Ohio, Inc. (2005 – 2007); and
			Associate, Greenberg Traurig, P.A. (2004 – 2005).

64

		Term of Office and
		Length of Time	Principal Occupation(s) or
Name and Age	Position	Served*	Employment During Past 5 Years
Richard E. Shield, Jr. (1974)	Tax Officer	Since 2008	Tax Officer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (2008 – present);
			Tax Manager, Jeffrey P. McClanathan, CPA (2006 – 2007) and Gregory, Sharer & Stuart (2005 – 2006);
			Tax Senior, Kirkland, Russ, Murphy & Tapp, P.A. (2003 – 2005); and
			Certified Public Accountant, Schultz, Chaipel & Co., LLP (1998 – 2003).

* Elected and serves at the pleasure of the Board of the 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 theTrust.

65

Committees of the Board

The Board Members are responsible for major decisions relating to a fund’s objective, policies and techniques. They review investment decisions, although they do not actively participate on a regular basis in making such decisions. The Board has the following standing committees each of which performs specialized functions: an Audit Committee and a Nominating Committee.

			NUMBER OF
			MEETINGS
			HELD DURING
			LAST FISCAL
			YEAR
COMMITTEE	FUNCTIONS	MEMBERS	10/31/2008
AUDIT	The Audit Committee (1) oversees the accounting and reporting policies and practices of the Trust; (2) oversees the quality and integrity of the financial statements of the Trust; (3) approves, prior to appointment, the engagement of the Trust’s independent auditors; and (4) reviews and evaluates the independent auditors’ qualifications, independence and performance. The independent auditors for the Trust shall report directly to the Audit Committee.	John W. Waechter, Chairperson Sandra N. Bane Leo J. Hill Neal M. Jewell Russell A. Kimball, Jr. Eugene M. Mannella Norman R. Nielsen Joyce G. Norden Patricia L. Sawyer		4
NOMINATING	The primary purposes and responsibilities of the Committee are to (i) identify individuals qualified to become members of the Board in the event that a position is vacated or created, (ii) consider all candidates proposed to become members of the Board, subject to the procedures and policies set forth in this Charter or resolutions of the Board, (iii) select and nominate, or recommend for nomination by the Board, candidates for election as Trustees and (iv) set any necessary standards or qualifications for service on the Board. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716.	Patricia L. Sawyer, Chairperson Sandra N. Bane Leo J. Hill Neal M. Jewell Russell A. Kimball, Jr. Eugene M. Mannella Norman R. Nielsen Joyce G. Norden John W. Waechter		0

66

Trustee Ownership of Equity Securities

The table below gives the dollar range of shares of the Trust, as well as the aggregate dollar range of shares of all funds/portfolios in the Transamerica Asset Management Group owned by each Trustee as of December 31, 2008.

	Dollar Range of Equity		Dollar Range of Equity	Dollar Range of Equity
	Securities in Transamerica		Securities in Transamerica	Securities in Transamerica
	AllianceBernstein		American Century Large	Asset Allocation -
Name of Trustee	International Value		Company Value	Conservative Portfolio
John K. Carter*	None		None	None
Sandra N. Bane	None		None	None
Leo J. Hill	None		None	None
Neal M. Jewell	None		None	$	50,001-$100,000
Russell A. Kimball, Jr.	None		None	None
Eugene M. Mannella	None		None	None
Norman R. Nielsen	None		None	None
Joyce G. Norden	None		None	None
Patricia L. Sawyer	None		None	None
John W. Waechter	None		None	None
	Dollar Range of Equity		Dollar Range of Equity	Dollar Range of Equity
	Securities in Transamerica		Securities in Transamerica	Securities in Transamerica
	Asset Allocation - Growth		Asset Allocation - Moderate	Asset Allocation - Moderate
Name of Trustee	Portfolio		Portfolio	Growth Portfolio
John K. Carter*	None		None	None
Sandra N. Bane	None		None	None
Leo J. Hill	None		None	None
Neal M. Jewell	None		None	None
Russell A. Kimball, Jr.	$	10,001-$50,000	Over $100,000	Over $100,000
Eugene M. Mannella	None		None	None
Norman R. Nielsen	None		None	$	50,001-$100,000
Joyce G. Norden	None		None	None
Patricia L. Sawyer	None		None	None
John W. Waechter	$	50,001-$100,000	None	$	50,001-$100,000
			Dollar Range of Equity
	Dollar Range of Equity		Securities Transamerica	Dollar Range of Equity
	Securities in Transamerica		Bjurman, Barry Micro	Securities in Transamerica
Name of Trustee	Balanced		Emerging Growth(1)	BlackRock Global Allocation
John K. Carter*	None		None	None
Sandra N. Bane	None		None	None
Leo J. Hill	$	10,001-$50,000	None	None
Neal M. Jewell	None		None	None
Russell A. Kimball, Jr.	None		None	None
Eugene M. Mannella	None		None	None
Norman R. Nielsen	$	10,001-$50,000	None	None
Joyce G. Norden	None		None	None
Patricia L. Sawyer	None		None	None
John W. Waechter	None		None	None
			Dollar Range of Equity	Dollar Range of Equity
	Dollar Range of Equity		Securities in Transamerica	Securities in Transamerica
	Securities in Transamerica		BlackRock Natural	BNY Mellon Market Neutral
Name of Trustee	BlackRock Large Cap Value		Resources	Strategy
John K. Carter*	None		None	None
Sandra N. Bane	None		None	None
Leo J. Hill	None		None	None
Neal M. Jewell	None		None	None
Russell A. Kimball, Jr.	None		None	None
Eugene M. Mannella	None		None	None
Norman R. Nielsen	None		None	None
Joyce G. Norden	None		None	None
Patricia L. Sawyer	None		None	None
John W. Waechter	None		None	None

67

	Dollar Range of Equity
	Securities in Transamerica		Dollar Range of Equity		Dollar Range of Equity
	Clarion Global Real Estate		Securities in Transamerica		Securities in Transamerica
Name of Trustee	Securities		Convertible Securities		Equity
John K. Carter*	None		None		None
Sandra N. Bane	None		None		None
Leo J. Hill	None		None		$	10,001-$50,000
Neal M. Jewell	None		None		None
Russell A. Kimball, Jr.	None		None		Over $100,000
Eugene M. Mannella	None		None		None
Norman R. Nielsen	None		None		$	10,001-$50,000
Joyce G. Norden	None		None		None
Patricia L. Sawyer	None		None		None
John W. Waechter	None		None		None
	Dollar Range of Equity		Dollar Range of Equity		Dollar Range of Equity
	Security Securities in		Securities in Transamerica		Securities in Transamerica
	Transamerica Evergreen		Evergreen International Small		Federated Market
Name of Trustee	Health Care		Cap		Opportunity
John K. Carter*	None		None		None
Sandra N. Bane	None		None		None
Leo J. Hill	None		None		None
Neal M. Jewell	None		None		None
Russell A. Kimball, Jr.	None		None		None
Eugene M. Mannella	None		None		None
Norman R. Nielsen	None		None		None
Joyce G. Norden	None		None		None
Patricia L. Sawyer	None		None		None
John W. Waechter	None		None		None
	Dollar Range of Equity		Dollar Range of Equity		Dollar Range of Equity
	Securities in Transamerica		Securities in Transamerica		Securities in Transamerica
Name of Trustee	Flexible Income		Growth Opportunities		High Yield Bond
John K. Carter*	None		None		None
Sandra N. Bane	None		None		None
Leo J. Hill	None			$1-$10,000	None
Neal M. Jewell	None		None		None
Russell A. Kimball, Jr.		$1-$10,000		$10,001-$50,000		$1-$10,000
Eugene M. Mannella	None		None		None
Norman R. Nielsen	None		None		None
Joyce G. Norden	None		None		None
Patricia L. Sawyer	None		None		None
John W. Waechter	None		None		None
	Dollar Range of Equity		Dollar Range of Equity		Dollar Range of Equity
	Securities in Transamerica		Securities in Transamerica		Securities in Transamerica
Name of Trustee	Jennison Growth		JPMorgan International Bond		JPMorgan Mid Cap Value
John K. Carter*	None		None		None
Sandra N. Bane	None		None		None
Leo J. Hill	None		None		None
Neal M. Jewell	None		None		None
Russell A. Kimball, Jr.		$1-$10,000	None		None
Eugene M. Mannella	None		None		None
Norman R. Nielsen	None		None		None
Joyce G. Norden	None		None		None
Patricia L. Sawyer	None		None		None
John W. Waechter	None		None		None

68

	Dollar Range of Equity		Dollar Range of Equity
	Securities in Transamerica		Securities in Transamerica		Dollar Range of Equity
	Legg Mason Partners All		Legg Mason Partners		Securities in Transamerica
Name of Trustee	Cap		Investors Value(2)		Loomis Sayles Bond
John K. Carter*	None		None		None
Sandra N. Bane	None		None		None
Leo J. Hill		$1-$10,000		$50,001-$100,000	None
Neal M. Jewell	None		None		None
Russell A. Kimball, Jr.		$10,001-$50,000	None		None
Eugene M. Mannella	None		None		None
Norman R. Nielsen	None		None		None
Joyce G. Norden	None		None		None
Patricia L. Sawyer	None		None		None
John W. Waechter	None		None		None
	Dollar Range of Equity		Dollar Range of Equity		Dollar Range of Equity
	Securities in Transamerica		Securities in Transamerica		Securities in Transamerica
Name of Trustee	Marsico Growth		Marsico International Growth		MFS International Equity
John K. Carter*	None		None		None
Sandra N. Bane	None		None		None
Leo J. Hill		$1-$10,000	None			$50,001-$100,000
Neal M. Jewell	None		None		None
Russell A. Kimball, Jr.	None		None		None
Eugene M. Mannella	None		None		None
Norman R. Nielsen	None		None		None
Joyce G. Norden	None		None		None
Patricia L. Sawyer	None		None		None
John W. Waechter	None		None		None
			Dollar Range of Equity		Dollar Range of Equity
	Dollar Range of Equity		Securities in Transamerica		Securities in Transamerica
	Securities in Transamerica		Multi-Manager Alternative		Multi-Manager International
Name of Trustee	Money Market		Strategies Portfolio		Portfolio
John K. Carter*	None		None		None
Sandra N. Bane	None		None		None
Leo J. Hill	None		None		None
Neal M. Jewell	None		None		None
Russell A. Kimball, Jr.	Over $100,000		None		None
Eugene M. Mannella	None		None		None
Norman R. Nielsen	None		None		None
Joyce G. Norden	None		None		None
Patricia L. Sawyer	None		None		None
John W. Waechter	None		None			$50,001-$100,000
	Dollar Range of Equity		Dollar Range of Equity		Dollar Range of Equity
	Securities in Transamerica		Securities in Transamerica		Securities in Transamerica
	Neuberger Berman		Oppenheimer Developing		Oppenheimer Small- & Mid
Name of Trustee	International		Markets		Cap Value
John K. Carter*	None		None		None
Sandra N. Bane	None		None		None
Leo J. Hill	None		None		None
Neal M. Jewell	None		None		None
Russell A. Kimball, Jr.	None		None		None
Eugene M. Mannella	None		None		None
Norman R. Nielsen	None		None		None
Joyce G. Norden	None		None		None
Patricia L. Sawyer	None		None		None
John W. Waechter	None		None		None

69

			Dollar Range of Equity
	Dollar Range of Equity	Dollar Range of Equity	Securities in Transamerica
	Securities in Transamerica	Securities in Transamerica	Schroders International
Name of Trustee	PIMCO Real Return TIPS	PIMCO Total Return	Small Cap
John K. Carter*	None	None	None
Sandra N. Bane	None	None	None
Leo J. Hill	None	$10,001-$50,000	None
Neal M. Jewell	None	None	None
Russell A. Kimball, Jr.	None	None	None
Eugene M. Mannella	None	None	None
Norman R. Nielsen	None	None	None
Joyce G. Norden	None	None	None
Patricia L. Sawyer	None	None	None
John W. Waechter	None	None	None

	Dollar Range of Equity	Dollar Range of Equity	Dollar Range of Equity
	Securities in Transamerica	Securities in Transamerica	Securities in Transamerica
Name of Trustee	Science & Technology	Short-Term Bond	Small/Mid Cap Value
John K. Carter*	None	None	None
Sandra N. Bane	None	None	None
Leo J. Hill	None	None	None
Neal M. Jewell	None	None	None
Russell A. Kimball, Jr.	$1-$10,000	None	None
Eugene M. Mannella	None	None	None
Norman R. Nielsen	None	None	None
Joyce G. Norden	None	None	None
Patricia L. Sawyer	None	None	None
John W. Waechter	None	None	None

			Dollar Range of Equity
	Dollar Range of Equity	Dollar Range of Equity	Securities in Transamerica
	Securities in Transamerica	Securities in Transamerica	Thornburg International
Name of Trustee	Templeton Global	Third Avenue Value	Value
John K. Carter*	None	None	None
Sandra N. Bane	None	None	None
Leo J. Hill	$10,001-$50,000	None	None
Neal M. Jewell	None	None	None
Russell A. Kimball, Jr.	$50,001-$100,000	None	None
Eugene M. Mannella	None	None	None
Norman R. Nielsen	None	None	None
Joyce G. Norden	None	None	None
Patricia L. Sawyer	None	None	None
John W. Waechter	None	None	None

	Dollar Range of Equity	Dollar Range of Equity	Dollar Range of Equity
	Securities in Transamerica	Securities in Transamerica	Securities in Transamerica
Name of Trustee	UBS Dynamic Alpha	UBS Large Cap Value	Value Balanced
John K. Carter*	None	None	None
Sandra N. Bane	None	None	None
Leo J. Hill	None	None	$10,001-$50,000
Neal M. Jewell	None	None	None
Russell A. Kimball, Jr.	None	None	$50,001-$100,000
Eugene M. Mannella	None	None	None
Norman R. Nielsen	None	None	None
Joyce G. Norden	None	None	None
Patricia L. Sawyer	None	None	None
John W. Waechter	None	None	None

70

	Dollar Range of Equity	Dollar Range of Equity	Dollar Range of Equity
	Securities in Transamerica	Securities in Transamerica	Securities in Transamerica
	Van Kampen Emerging	Van Kampen Mid-Cap	Van Kampen Small Company
Name of Trustee	Markets Debt	Growth	Growth
John K. Carter*	None	None	None
Sandra N. Bane	None	None	None
Leo J. Hill	None	None	None
Neal M. Jewell	None	None	None
Russell A. Kimball, Jr.	None	None	None
Eugene M. Mannella	None	None	None
Norman R. Nielsen	None	None	None
Joyce G. Norden	None	None	None
Patricia L. Sawyer	None	None	None
John W. Waechter	None	None	None

		Aggregate Dollar Range of
	Dollar Range of Equity	Equity Securities in
	Securities in Transamerica	Transamerica Asset
Name of Trustee	WMC Emerging Markets	Management Group
John K. Carter*	None	Over $100,000
Sandra N. Bane	None	None
Leo J. Hill	None	Over $100,000
Neal M. Jewell	None	Over $100,000
Russell A. Kimball, Jr.	None	Over $100,000
Eugene M. Mannella	None	None
Norman R. Nielsen	None	Over $100,000
Joyce G. Norden	None	None
Patricia L. Sawyer	None	None
John W. Waechter	None	Over $100,000

*	Interested person under the 1940 Act by virtue of his position with TAM and its affiliates.
(1)	Transamerica Bjurman, Barry Micro Emerging Growth was liquidated and dissolved on April 24, 2009.
(2)	Transamerica Legg Mason Partners Investors Value was liquidated and dissolved on April 3, 2009.
Note:	Information is not shown for Transamerica JPMorgan Core Bond as it had not commenced operations prior to the date of this SAI.

As of December 31, 2008, none of the Independent Trustees or their immediate family members owned beneficially or of record any securities of the Adviser, sub-advisers or Distributor of the funds, or in a person (other than a registered investment company) directly or indirectly controlling, controlled by or under common control with the Adviser, sub-advisers or Distributor of the funds.

Independent Trustees receive a total annual retainer fee of $124,000 from the funds/portfolios that make up the Transamerica Asset Management Group, as well as total fees of $8,800 per meeting (assumes five meetings annually), of which the Trust pays a pro rata share allocable to each series of Transamerica Funds based on the relative assets of the series. The Lead Independent Trustee of the Board also receives an additional retainer of $40,000 per year. The Audit Committee Chairperson receives an additional retainer of $15,000 per year. The Trust also pays a pro rata share allocable to each series of Transamerica Funds based on the relative assets of the series for the Lead Independent Trustee and Audit Committee Chairperson retainers. Any fees and expenses paid to Trustees who are affiliates of TAM or TCI are paid by TAM and/or TCI and not by the Trust.

Under a non-qualified deferred compensation plan effective January 1, 1996, as amended and restated May 1, 2008 (the “Deferred Compensation Plan”), available to the Trustees, compensation may be deferred that would otherwise be payable by the Trust 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 the Trust (without imposition of sales charge), investment options under Transamerica Partners Funds Group II, or funds of Transamerica Investors, Inc. (“Premier”) as elected by the Trustee.

Amounts deferred and accrued under the Deferred Compensation Plan are unfunded and unsecured claims against the general assets of the Trust.

71

The following table provides compensation amounts paid to Independent Trustees of the funds for the fiscal year ended October 31, 2008.

COMPENSATION TABLE

	Aggregate Compensation		Aggregate Compensation		Aggregate Compensation
	from Transamerica		from Transamerica		from Transamerica Asset
	AllianceBernstein		American Century Large		Allocation - Conservative
Name of Trustee	International Value		Company Value		Portfolio
Sandra N. Bane	$	406	$	522	$	628
Leo J. Hill	$	790	$	1,016	$	1,223
Neal M. Jewell	$	835	$	1,074	$	1,293
Russell A. Kimball, Jr.	$	790	$	1,016	$	1,223
Eugene M. Mannella	$	681	$	876	$	1,055
Norman R. Nielsen	$	790	$	1,016	$	1,223
Joyce G. Norden	$	681	$	876	$	1,055
Patricia L. Sawyer	$	729	$	937	$	1,129
John W. Waechter	$	808	$	1,039	$	1,251
	Aggregate Compensation		Aggregate Compensation		Aggregate Compensation
	from Transamerica Asset		from Transamerica Asset		from Transamerica Asset
	Allocation - Growth		Allocation - Moderate		Allocation - Moderate
Name of Trustee	Portfolio		Portfolio		Growth Portfolio
Sandra N. Bane	$	1,822	$	1,756	$	3,162
Leo J. Hill	$	3,548	$	3,420	$	6,158
Neal M. Jewell	$	3,752	$	3,616	$	6,511
Russell A. Kimball, Jr.	$	3,548	$	3,420	$	6,158
Eugene M. Mannella	$	3,061	$	2,950	$	5,313
Norman R. Nielsen	$	3,548	$	3,420	$	6,158
Joyce G. Norden	$	3,061	$	2,950	$	5,313
Patricia L. Sawyer	$	3,274	$	3,156	$	5,682
John W. Waechter	$	3,629	$	3,498	$	6,298
			Aggregate Compensation		Aggregate Compensation
	Aggregate Compensation		from Transamerica		from Transamerica
	from Transamerica		Bjurman, Barry Micro		BlackRock Global
Name of Trustee	Balanced		Emerging Growth(1)		Allocation
Sandra N. Bane	$	133	$	69	$	420
Leo J. Hill	$	259	$	135	$	818
Neal M. Jewell	$	274	$	142	$	865
Russell A. Kimball, Jr.	$	259	$	135	$	818
Eugene M. Mannella	$	223	$	116	$	706
Norman R. Nielsen	$	259	$	135	$	818
Joyce G. Norden	$	223	$	116	$	706
Patricia L. Sawyer	$	239	$	124	$	755
John W. Waechter	$	265	$	138	$	837
			Aggregate Compensation		Aggregate Compensation
	Aggregate Compensation		from Transamerica		from Transamerica BNY
	from Transamerica		BlackRock Natural		Mellon Market Neutral
Name of Trustee	BlackRock Large Cap Value		Resources		Strategy
Sandra N. Bane	$	470	$	135	$	99
Leo J. Hill	$	914	$	262	$	192
Neal M. Jewell	$	967	$	277	$	203
Russell A. Kimball, Jr.	$	914	$	262	$	192
Eugene M. Mannella	$	789	$	226	$	166
Norman R. Nielsen	$	914	$	262	$	192
Joyce G. Norden	$	789	$	226	$	166
Patricia L. Sawyer	$	844	$	242	$	177
John W. Waechter	$	935	$	268	$	196

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	Aggregate Compensation
	from Transamerica Clarion		Aggregate Compensation
	Global Real Estate		from Transamerica		Aggregate Compensation
Name of Trustee	Securities		Convertible Securities		from Transamerica Equity
Sandra N. Bane	$	284	$	133	$	1,363
Leo J. Hill	$	553	$	259	$	2,655
Neal M. Jewell	$	585	$	274	$	2,807
Russell A. Kimball, Jr.	$	553	$	259	$	2,655
Eugene M. Mannella	$	477	$	224	$	2,290
Norman R. Nielsen	$	553	$	259	$	2,655
Joyce G. Norden	$	477	$	224	$	2,290
Patricia L. Sawyer	$	510	$	239	$	2,450
John W. Waechter	$	566	$	265	$	2,715
			Aggregate Compensation		Aggregate Compensation
	Aggregate Compensation		from Transamerica		from Transamerica
	from Transamerica		Evergreen International		Federated Market
Name of Trustee	Evergreen Health Care		Small Cap		Opportunity
Sandra N. Bane	$	260	$	455	$	56
Leo J. Hill	$	506	$	887	$	109
Neal M. Jewell	$	535	$	938	$	115
Russell A. Kimball, Jr.	$	506	$	887	$	109
Eugene M. Mannella	$	436	$	765	$	94
Norman R. Nielsen	$	506	$	887	$	109
Joyce G. Norden	$	436	$	765	$	94
Patricia L. Sawyer	$	467	$	818	$	100
John W. Waechter	$	517	$	907	$	111
	Aggregate Compensation		Aggregate Compensation		Aggregate Compensation
	from Transamerica Flexible		from Transamerica Growth		from Transamerica High
Name of Trustee	Income		Opportunities		Yield Bond
Sandra N. Bane	$	326	$	245	$	348
Leo J. Hill	$	635	$	478	$	679
Neal M. Jewell	$	671	$	505	$	717
Russell A. Kimball, Jr.	$	635	$	478	$	679
Eugene M. Mannella	$	548	$	412	$	585
Norman R. Nielsen	$	635	$	478	$	679
Joyce G. Norden	$	548	$	412	$	585
Patricia L. Sawyer	$	586	$	441	$	626
John W. Waechter	$	649	$	489	$	694
			Aggregate Compensation
	Aggregate Compensation		from Transamerica		Aggregate Compensation
	from Transamerica		JPMorgan International		from Transamerica
Name of Trustee	Jennison Growth		Bond		JPMorgan Mid Cap Value
Sandra N. Bane	$	164	$	661	$	204
Leo J. Hill	$	319	$	1,286	$	397
Neal M. Jewell	$	337	$	1,360	$	419
Russell A. Kimball, Jr.	$	319	$	1,286	$	397
Eugene M. Mannella	$	275	$	1,110	$	342
Norman R. Nielsen	$	319	$	1,286	$	397
Joyce G. Norden	$	275	$	1,110	$	342
Patricia L. Sawyer	$	294	$	1,187	$	366
John W. Waechter	$	326	$	1,316	$	406

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			Aggregate Compensation
	Aggregate Compensation		from Transamerica Legg		Aggregate Compensation
	from Transamerica Legg		Mason Partners Investors		from Transamerica Loomis
Name of Trustee	Mason Partners All Cap		Value(2)		Sayles Bond
Sandra N. Bane	$	114	$	60	$	509
Leo J. Hill	$	222	$	118	$	992
Neal M. Jewell	$	235	$	124	$	1,049
Russell A. Kimball, Jr.	$	222	$	118	$	992
Eugene M. Mannella	$	192	$	101	$	856
Norman R. Nielsen	$	222	$	118	$	992
Joyce G. Norden	$	192	$	101	$	856
Patricia L. Sawyer	$	205	$	108	$	915
John W. Waechter	$	227	$	120	$	1,014
	Aggregate Compensation		Aggregate Compensation		Aggregate Compensation
	from Transamerica Marsico		from Transamerica Marsico		from Transamerica MFS
Name of Trustee	Growth		International Growth		International Equity
Sandra N. Bane	$	345	$	504	$	20
Leo J. Hill	$	673	$	982	$	39
Neal M. Jewell	$	711	$	1,038	$	41
Russell A. Kimball, Jr.	$	673	$	982	$	39
Eugene M. Mannella	$	580	$	847	$	33
Norm R. Nielsen	$	673	$	982	$	39
Joyce G. Norden	$	580	$	847	$	33
Patricia L. Sawyer	$	621	$	906	$	36
John W. Waechter	$	688	$	1,004	$	39
			Aggregate Compensation		Aggregate Compensation
	Aggregate Compensation		from Transamerica Multi-		from Transamerica Multi-
	from Transamerica Money		Manager Alternative		Manager International
Name of Trustee	Market		Strategies Portfolio		Portfolio
Sandra N. Bane	$	157	$	123	$	376
Leo J. Hill	$	306	$	239	$	733
Neal M. Jewell	$	323	$	253	$	775
Russell A. Kimball, Jr.	$	306	$	239	$	733
Eugene M. Mannella	$	264	$	206	$	632
Norman R. Nielsen	$	306	$	239	$	733
Joyce G. Norden	$	264	$	206	$	632
Patricia L. Sawyer	$	282	$	221	$	676
John W. Waechter	$	313	$	245	$	749
			Aggregate Compensation		Aggregate Compensation
	Aggregate Compensation		from Transamerica		from Transamerica
	Transamerica Neuberger		Oppenheimer Developing		Oppenheimer Small- & Mid-
Name of Trustee	Berman International		Markets		Cap Value
Sandra N. Bane	$	474	$	522	$	152
Leo J. Hill	$	924	$	1,017	$	295
Neal M. Jewell	$	977	$	1,076	$	312
Russell A. Kimball, Jr.	$	924	$	1,017	$	295
Eugene M. Mannella	$	797	$	878	$	255
Norman R. Nielsen	$	924	$	1,017	$	295
Joyce G. Norden	$	797	$	878	$	255
Patricia L. Sawyer	$	852	$	939	$	272
John W. Waechter	$	945	$	1,041	$	302

74

					Aggregate Compensation
	Aggregate Compensation		Aggregate Compensation		from Transamerica
	from Transamerica PIMCO		from Transamerica PIMCO		Schroders International
Name of Trustee	Real Return TIPS		Total Return		Small Cap
Sandra N. Bane	$	607	$	472	$	64
Leo J. Hill	$	1,182	$	919	$	125
Neal M. Jewell	$	1,250	$	972	$	132
Russell A. Kimball, Jr.	$	1,182	$	919	$	125
Eugene M. Mannella	$	1,020	$	793	$	108
Norman R. Nielsen	$	1,182	$	919	$	125
Joyce G. Norden	$	1,020	$	793	$	108
Patricia L. Sawyer	$	1,091	$	848	$	115
John W. Waechter	$	1,209	$	940	$	127
	Aggregate Compensation		Aggregate Compensation		Aggregate Compensation
	from Transamerica Science		from Transamerica Short-		from Transamerica
Name of Trustee	& Technology		Term Bond		Small/Mid Cap Value
Sandra N. Bane	$	70	$	466	$	611
Leo J. Hill	$	137	$	908	$	1,190
Neal M. Jewell	$	145	$	960	$	1,258
Russell A. Kimball, Jr.	$	137	$	908	$	1,190
Eugene M. Mannella	$	118	$	783	$	1,026
Norman R. Nielsen	$	137	$	908	$	1,190
Joyce G. Norden	$	118	$	783	$	1,026
Patricia L. Sawyer	$	126	$	838	$	1,098
John W. Waechter	$	140	$	928	$	1,217
					Aggregate Compensation
	Aggregate Compensation		Aggregate Compensation		from Transamerica
	from Transamerica		from Transamerica Third		Thornburg International
Name of Trustee	Templeton Global		Avenue Value		Value(3)
Sandra N. Bane	$	163	$	495	$	0
Leo J. Hill	$	318	$	963	$	0
Neal M. Jewell	$	336	$	1,018	$	0
Russell A. Kimball, Jr.	$	318	$	963	$	0
Eugene M. Mannella	$	275	$	831	$	0
Norman R. Nielsen	$	318	$	963	$	0
Joyce G. Norden	$	275	$	831	$	0
Patricia L. Sawyer	$	294	$	889	$	0
John W. Waechter	$	325	$	985	$	0
	Aggregate Compensation		Aggregate Compensation		Aggregate Compensation
	from Transamerica UBS		from Transamerica UBS		from Transamerica Value
Name of Trustee	Dynamic Alpha		Large Cap Value		Balanced
Sandra N. Bane	$	173	$	657	$	42
Leo J. Hill	$	338	$	1,279	$	82
Neal M. Jewell	$	357	$	1,353	$	87
Russell A. Kimball, Jr.	$	338	$	1,279	$	82
Eugene M. Mannella	$	291	$	1,104	$	71
Norman R. Nielsen	$	338	$	1,279	$	82
Joyce G. Norden	$	291	$	1,104	$	71
Patricia L. Sawyer	$	312	$	1,180	$	76
John W. Waechter	$	345	$	1,308	$	84

75

	Aggregate Compensation				Aggregate Compensation
	from Transamerica Van		Aggregate Compensation		from Transamerica Van
	Kampen Emerging Markets		from Transamerica Van		Kampen Small Company
Name of Trustee	Debt		Kampen Mid-Cap Growth		Growth
Sandra N. Bane	$	276	$	112	$	133
Leo J. Hill	$	537	$	218	$	259
Neal M. Jewell	$	568	$	230	$	274
Russell A. Kimball, Jr.	$	537	$	218	$	259
Eugene M. Mannella	$	463	$	188	$	223
Norman R. Nielsen	$	537	$	218	$	259
Joyce G. Norden	$	463	$	188	$	223
Patricia L. Sawyer	$	495	$	201	$	239
John W. Waechter	$	549	$	223	$	265

	Aggregate Compensation
	from Transamerica WMC
Name of Trustee	Emerging Markets(3)
Sandra N. Bane	$0
Leo J. Hill	$0
Neal M. Jewell	$0
Russell A. Kimball, Jr.	$0
Eugene M. Mannella	$0
Norman R. Nielsen	$0
Joyce G. Norden	$0
Patricia L. Sawyer	$0
John W. Waechter	$0

	Pension or Retirement	Total Compensation Paid to
	Benefits Accrued as Part of	Trustees from Fund Asset
Name of Trustee	Fund Expenses	Management Group(4)
Sandra N. Bane	$0	$120,550
Leo J. Hill	$0	$185,200
Neal M. Jewell	$0	$218,701
Russell A. Kimball, Jr.	$0	$185,200
Eugene M. Mannella	$0	$177,534
Norman R. Nielsen	$0	$185,200
Joyce G. Norden	$0	$177,534
Patricia L. Sawyer	$0	$190,784
John W. Waechter	$0	$188,534

(1)	Transamerica Bjurman, Barry Micro Emerging Growth was liquidated and dissolved on April 24, 2009.
(2)	Transamerica Legg Mason Partners Investors Value was liquidated and dissolved on April 3, 2009.
(3)	Transamerica Thornburg International Value and Transamerica WMC Emerging Markets commenced operations on September 15, 2008 and September 30, 2008, respectively, and as such, there were no compensation amounts paid to the Independent Trustees as of October 31, 2008.
(4)	Of this aggregate compensation, the total amounts deferred from the funds of Transamerica Funds (including earnings and dividends) and accrued for the benefit of the participating Trustees for the fiscal year ended October 31, 2008 were as follows: Sandra N. Bane, $0: Leo J. Hill, $6,745; Neal M. Jewell, $21,191; Russell A. Kimball, Jr., $12,219; Eugene M. Mannella, $0; Norman R. Nielsen, $0; Joyce G. Norden, $0; Patricia L. Sawyer, $0; and John W. Waechter, $0.
Note:	Information is not shown for Transamerica JPMorgan Core Bond as it had not commenced operations prior to the date of this SAI.

As of October 31, 2008, the trustees and officers held in aggregate less than 1% of the outstanding shares of each of the series of the Trust.

SHAREHOLDER COMMUNICATION PROCEDURES WITH BOARD OF TRUSTEES

The Board of Trustees of the Trust has adopted these procedures by which shareholders of the funds may send written communications to the Board. Shareholders may mail written communications to the Board, addressed to the care of the Secretary of the Trust (“Secretary”), as follows:

Board of Trustees
Transamerica Funds
c/o Secretary
570 Carillon Parkway
St. Petersburg, Florida 33716

76

Each shareholder communication must: (i) be in writing and be signed by the shareholder; (ii) identify the underlying series of the Trust to which it relates; and (iii) identify the class (if applicable) held by the shareholder. The Secretary is responsible for collecting, reviewing and organizing all properly submitted shareholder communications. Usually, with respect to each properly submitted shareholder communication, the Secretary shall either: (i) provide a copy of the communication to the Board at the next regularly scheduled Board meeting; or (ii) if the Secretary determines that the communication requires more immediate attention, forward the communication to the Board promptly after receipt. The Secretary may, in good faith, determine that a shareholder communication should not be provided to the Board because the communication: (i) does not reasonably relate to a series of the Trust or its operation, management, activities, policies, service providers, Board, officers, shareholders or other matters relating to an investment in the Trust; or (ii) is ministerial in nature (such as a request for fund literature, share data or financial information). These procedures shall not apply to (i) any communication from an officer or Trustee of the Trust, (ii) any communication from an employee or agent of the Trust, unless such communication is made solely in such employee’s or agent’s capacity as a shareholder, (iii) any shareholder proposal submitted pursuant to Rule 14a-8 under the Securities Exchange Act of 1934 (“Exchange Act”) or any communication made in connection with such a proposal, or (iv) any communication that reasonably may be considered to be a complaint regarding the Trust or shareholder services, which complaint shall instead be promptly forwarded to the Trust’s Chief Compliance Officer. The Trustees are not required to attend the Trust’s shareholder meetings, if any, or to otherwise make themselves available to shareholders for communications, other than pursuant to these Procedures.

DEALER REALLOWANCES

CLASS A, CLASS B, CLASS C, AND CLASS T SHARES ONLY (NOT APPLICABLE TO CLASS I OR CLASS R SHARES).

Transamerica Funds sells shares of its funds both directly and through authorized dealers. When you buy shares, your fund receives the entire NAV of the shares you purchase. TCI keeps the sales charge, then “reallows” a portion to the dealers through which shares were purchased. This is how dealers are compensated. From time to time, and particularly in connection with sales that are not subject to a sales charge, TCI may enter into agreements with a broker or dealer whereby the dealer reallowance is less than the amounts indicated in the following tables.

Promotions may also involve non-cash incentives such as prizes or merchandise. Non-cash compensation may also be in the form of attendance at seminars conducted by TCI, including lodging and travel expenses, in accordance with the rules of the FINRA.

Reallowances may also be given to financial institutions to compensate them for their services in connection with Class A share sales and servicing of shareholder accounts.

Class A Share Dealer Reallowances
(all funds except Transamerica Flexible Income, Transamerica High Yield Bond, Transamerica Convertible Securities, Transamerica Money Market and Transamerica Short-Term Bond)

	Reallowance to Dealers as a
Amount of Purchase	Percent of Offering Price
Under $50 Thousand		4.75	%
$50 Thousand to under $100 Thousand		4.00	%
$100 Thousand to under $250 Thousand		2.75	%
$250 Thousand to under $500 Thousand		2.25	%
$500 Thousand to under $1 Million		1.75	%
For purchases of $1 Million and above:
$1 Million to under $5 Million		1.00	%*
$5 Million to under $50 Million	Plus 0.50		%*
$50 Million and above	Plus 0.25		%*

Class A Share Dealer Reallowances
(Transamerica Flexible Income, Transamerica High Yield Bond and Transamerica Convertible Securities)

	Reallowance to Dealers as a
Amount of Purchase	Percent of Offering Price
Under $50 Thousand		4.00	%
$50 Thousand to under $100 Thousand		3.25	%
$100 Thousand to under $250 Thousand		2.75	%
$250 Thousand to under $500 Thousand		1.75	%
$500 Thousand to under $1 Million		1.00	%
For purchases of $1 Million and above:
$1 Million to under $5 Million		0.50	%*
$5 Million and above	Plus 0.25		%*

77

Class A Share Dealer Reallowances
(Transamerica Short-Term Bond)

	Reallowance to Dealers as a
Amount of Purchase	Percent of Offering Price
Under $500 Thousand		2.00	%
$500 Thousand to under $750 Thousand		1.60	%
$750 Thousand to under $1 Million		1.20	%
For purchases of $1 Million and above:
$1 Million to under $5 million		0.50	%
$5 Million and above	Plus 0.25		%*

* No Dealer Reallowance is paid on purchases made on behalf of wrap accounts for the benefit of certain broker-dealers, financial institutions, or financial planners who have entered into arrangements with Transamerica Funds or TCI , and for purchases made by a retirement plan described in Section 401(a), 401(k), 401(m), or 457 of the Internal Revenue Code.

Class B Share Dealer Reallowances

	Reallowance to Dealers as a
Amount of Purchase	Percent of Offering Price
All purchases	4.00%*

Class C Share Dealer Reallowances

	Reallowance to Dealers as a
Amount of Purchase	Percent of Offering Price
All purchases	1.00%**(a)

Class T Share Dealer Reallowances
(Transamerica Equity)

	Reallowance to Dealers as a
Amount of Purchase	Percent of Offering Price
Under $10,000	7.00%
$10,000 to under $25,000	6.25%
$25,000 to under $50,000	5.50%
$50,000 to under $75,000	5.00%
$75,000 to under $100,000	4.25%
$100,000 to under $250,000	3.75%
$250,000 to under $500,000	2.50%
$500,000 to under $1,000,000	1.00%
$1,000,000 and over	1.00%

*	From time to time, TCI may reallow to a dealer an amount less than 4% on sales of Class B shares. In such circumstances, TCI will benefit directly to the extent the reallowance percentage is reduced below 4% on any purchase of Class B shares.
**	From time to time, TCI may enter into agreements with brokers and dealers whereby the dealer allowance may be less than the amount indicated. Such agreements would also provide that the applicable shares could be subject to a contingent deferred sales charge for a period less than the otherwise applicable period.
(a)	All shares designated as Class C2 shares on March 1, 2004 were converted to Class C shares on June 15, 2004. On September 24, 2004, Class M shares were converted into Class C shares.

Please note that Class A, B and C shares of the following funds are no longer offered for sale: Transamerica American Century Large Company Value; Transamerica Clarion Global Real Estate Securities; Transamerica Jennison Growth; Transamerica MFS International Equity; Transamerica Marsico Growth; Transamerica PIMCO Real Return TIPS; Transamerica PIMCO Total Return; and Transamerica Evergreen Health Care.

DISTRIBUTION PLANS

CLASS A, CLASS B, CLASS C, AND CLASS R SHARES ONLY (NOT APPLICABLE TO CLASS I AND CLASS T SHARES).

As stated in the prospectus, each fund has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act (individually, a “Plan” and collectively, the “Plans”), applicable to Class A, Class B, Class C, and Class R shares of the fund. This Plan is structured as a Compensation Plan. Class I shares and Class T shares of Transamerica Equity are not subject to distribution and service fees.

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In determining whether to approve the Distribution Plan and the Distribution Agreements, the Trustees considered the possible advantages afforded shareholders from adopting the Distribution Plans and Distribution Agreements. The Trustees were informed by representatives of TCI that payments of distribution-related expenses by the funds under the Distribution Plans would provide incentives to TCI to establish and maintain an enhanced distribution system whereby new investors will be attracted to the funds. The Trustees believe that improvements in distribution services should result in increased sales of shares in the funds. In turn, increased sales are expected to lead to an increase in a fund’s net asset levels, which would enable the funds to achieve economies of scale and lower their per-share operating expenses. In addition, higher net asset levels could enhance the investment management of the funds, for net inflows of cash from new sales may enable a fund’s investment adviser and sub-adviser to take advantage of attractive investment opportunities. Finally, reduced redemptions could eliminate the potential need to liquidate attractive securities positions in order to raise the capital necessary to meet redemption requests. Under the Plans, for Class A shares, a fund may pay TCI annual distribution and service fees of up to 0.35% of the average daily net assets of a fund’s Class A shares. For Class B shares, a fund may pay TCI annual distribution and service fees of up to 1.00% of the average daily net assets of a fund’s Class B shares. For Class C shares, a fund may pay TCI annual distribution and service fees of up to 1.00% of the average daily net assets of a fund’s Class C shares. For Class R shares, a fund may pay TCI annual distribution and service fees of up to 0.50% of the average daily net assets of a fund’s Class R shares.

Effective on the close of business on February 28, 2006, the following funds ceased accepting new investments (other than reinvestment of dividends and distributions) and ceased the payment by each class of shares of the funds of Rule 12b-1 fees at least until March 1, 2010: Transamerica American Century Large Company Value; Transamerica Clarion Global Real Estate Securities; Transamerica Evergreen Health Care; Transamerica Jennison Growth; Transamerica Marsico Growth; Transamerica MFS International Equity; Transamerica PIMCO Real Return TIPS; and Transamerica PIMCO Total Return.

TCI may use the fees payable under the Plan as it deems appropriate to pay for activities or expenses primarily intended to result in the sale of the Class A, Class B, Class C, or Class R shares, or in personal service to and/or maintenance of these shareholder accounts. In the case of funds or classes of shares that are closed to new investors or investments, TCI also may use the fees payable under the Plan to make payments to brokers and other financial intermediaries for past sales and distribution efforts. For each class, these activities and expenses may include, but are not limited to:

• Compensation to employees of TCI;

• Compensation to and expenses of TCI and other selected dealers who engage in or otherwise support the distribution of shares or who service shareholder accounts;

• In the case of a fund or a class of shares that is closed to new investors or investments, payment for services to and for maintenance of existing shareholder accounts and compensation of broker-dealers or other intermediaries for past sales and distribution efforts;

• The costs of printing and distributing prospectuses, statements of additional information and reports for other than existing shareholders; and

• The cost of preparing, printing and distributing sales literature and advertising materials.

Under the Plan, as required by Rule 12b-1, the Board of Trustees will review, at least quarterly, a written report provided by TCI of the amounts expended in distributing and servicing Class A, Class B, Class C, or Class R shares of the funds and the purpose for which such expenditures were made. For so long as the Plan is in effect, selection and nomination of the Trustees who are not interested persons of the fund shall be committed to the discretion of the Trustees who are not interested persons of the fund.

A Plan may be terminated as to a class of shares of a fund at any time by vote of a majority of the Independent Trustees, or by vote of a majority of the outstanding voting securities of the applicable class. The Plan may be amended by vote of the Trustees, including a majority of the Independent Trustees of the fund that have no direct or indirect financial interest in the operation of the Plan or any agreement relating thereto, cast in person at a meeting called for that purpose. Any amendment of the Plan that would materially increase the costs to a particular class of shares of a fund requires approval by the shareholders of that class. The Plan will remain in effect for successive one year periods, so long as such continuance is approved annually by vote of the fund’s Trustees, including a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such continuance.

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DISTRIBUTION FEES

CLASS A, CLASS B, CLASS C, AND CLASS R SHARES ONLY (NOT APPLICABLE TO CLASS I AND CLASS T SHARES, WHICH DO NOT INCUR DISTRIBUTION FEES).

Total distribution expenses incurred by TCI for the costs of promotion and distribution with respect to Class A, B, and C shares for the funds for the fiscal year ended October 31, 2008 were as follows:

Transamerica Asset Allocation — Conservative Portfolio

	Class A		Class B		Class C		Class R
Promotion and Distribution Expenses
Compensation to dealers	$	827,354	$	1,032,289	$	4,189,623	$	2,853
Compensation to sales personnel		692,562		157,382		877,242		5,131
Printing and postage		107,191		24,584		135,441		753
Promotional expenses		83,831		18,551		105,606		711
Travel		85,558		19,551		108,803		621
Office and other expenses		387,268		88,113		490,375		2,803
TOTALS	$	2,183,764	$	1,340,470	$	5,907,090	$	12,872

Transamerica Asset Allocation — Growth Portfolio

	Class A		Class B		Class C		Class R
Promotion and Distribution Expenses
Compensation to dealers	$	1,676,336	$	2,033,224	$	10,498,637	$	3,070
Compensation to sales personnel		1,175,480		302,318		1,512,075		5,162
Printing and postage		190,860		49,800		247,375		816
Promotional expenses		137,055		34,359		172,350		582
Travel		144,318		37,189		186,365		646
Office and other expenses		652,641		167,932		841,060		2,909
TOTALS	$	3,976,690	$	2,624,822	$	13,457,862	$	13,185

Transamerica Asset Allocation — Moderate Portfolio

	Class A		Class B		Class C		Class R
Promotion and Distribution Expenses
Compensation to dealers	$	1,683,748	$	2,092,870	$	11,024,010	$	1,815
Compensation to sales personnel		1,266,845		313,710		1,751,954		2,727
Printing and postage		199,491		50,293		280,198		463
Promotional expenses		151,622		36,331		202,827		276
Travel		156,042		38,764		216,806		344
Office and other expenses		706,562		175,159		978,199		1,524
TOTALS	$	4,164,310	$	2,707,127	$	14,453,994	$	7,149

Transamerica Asset Allocation — Moderate Growth Portfolio

	Class A		Class B		Class C		Class R
Promotion and Distribution Expenses
Compensation to dealers	$	2,837,054	$	3,795,399	$	19,066,000	$	5,952
Compensation to sales personnel		2,019,600		570,713		3,047,276		7,669
Printing and postage		322,911		92,279		493,078		1,219
Promotional expenses		237,255		65,861		349,782		864
Travel		248,813		70,402		376,632		950
Office and other expenses		1,125,021		317,825		1,696,717		4,370
TOTALS	$	6,790,654	$	4,912,479	$	25,029,485	$	21,024

Transamerica Legg Mason Partners All Cap

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	101,938	$	186,583	$	235,754
Compensation to sales personnel		33,871		28,290		16,573
Printing and postage		5,465		4,629		2,733
Promotional expenses		3,965		3,276		1,900
Travel		4,163		3,467		2,031
Office and other expenses		18,831		15,716		9,202
TOTALS	$	168,233	$	241,961	$	268,193

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Transamerica Multi-Manager Alternative Strategies Portfolio

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	212,709	$	0	$	911,524
Compensation to sales personnel		465,378		0		338,660
Printing and postage		73,201		0		53,957
Promotional expenses		54,091		0		39,858
Travel		58,102		0		41,842
Office and other expenses		259,401		0		188,193
TOTALS	$	1,122,882	$	0	$	1,574,034

Transamerica Multi-Manager International Portfolio

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	449,662	$	279,129	$	1,884,301
Compensation to sales personnel		430,336		41,708		368,029
Printing and postage		70,110		7,137		63,632
Promotional expenses		50,715		4,727		41,170
Travel		52,512		5,040		44,481
Office and other expenses		238,761		23,031		202,819
TOTALS	$	1,292,096	$	360,772	$	2,604,432

Transamerica Templeton Global

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	267,759	$	124,674	$	195,401
Compensation to sales personnel		82,326		16,979		15,134
Printing and postage		13,134		2,800		2,475
Promotional expenses		9,745		1,956		1,735
Travel		10,138		2,071		1,861
Office and other expenses		45,758		9,463		8,420
TOTALS	$	428,860	$	157,943	$	225,026

Transamerica Balanced

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	152,035	$	196,831	$	246,884
Compensation to sales personnel		48,829		27,641		17,444
Printing and postage		7,710		4,505		2,854
Promotional expenses		5,801		3,191		1,991
Travel		6,031		3,390		2,149
Office and other expenses		27,189		15,417		9,705
TOTALS	$	247,595	$	250,975	$	281,027

Transamerica Convertible Securities

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	31,790	$	31,833	$	107,398
Compensation to sales personnel		55,687		4,542		35,733
Printing and postage		9,050		769		5,525
Promotional expenses		6,272		495		4,312
Travel		6,896		556		4,362
Office and other expenses		31,161		2,547		20,391
TOTALS	$	140,856	$	40,742	$	177,721

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Transamerica Equity*

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	1,136,032	$	452,037	$	725,424
Compensation to sales personnel		432,327		62,596		63,625
Printing and postage		70,084		10,225		10,392
Promotional expenses		50,087		7,227		7,411
Travel		53,232		7,677		7,770
Office and other expenses		240,298		34,839		35,447
TOTALS	$	1,982,060	$	574,601	$	850,069

Transamerica Flexible Income

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	38,957	$	38,431	$	73,934
Compensation to sales personnel		16,121		5,402		7,543
Printing and postage		2,449		898		1,217
Promotional expenses		2,034		613		887
Travel		1,972		662		925
Office and other expenses		9,034		2,996		4,195
TOTALS	$	70,567	$	49,002	$	88,701

Transamerica Growth Opportunities

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	135,691	$	153,314	$	162,875
Compensation to sales personnel		47,262		21,150		11,772
Printing and postage		7,593		3,450		1,936
Promotional expenses		5,584		2,446		1,364
Travel		5,808		2,593		1,439
Office and other expenses		26,221		11,782		6,532
TOTALS	$	228,159	$	194,735	$	185,918

Transamerica High Yield Bond

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	83,980	$	43,519	$	67,754
Compensation to sales personnel		53,688		7,194		6,338
Printing and postage		8,240		1,121		1,055
Promotional expenses		6,930		895		734
Travel		6,528		879		771
Office and other expenses		29,628		3,990		3,506
TOTALS	$	188,994	$	57,598	$	80,158

Transamerica Money Market

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	284,495	$	134,589	$	306,560
Compensation to sales personnel		76,272		19,189		29,151
Printing and postage		11,819		3,007		4,143
Promotional expenses		9,267		2,262		3,928
Travel		9,422		2,375		3,593
Office and other expenses		42,511		10,769		16,247
TOTALS	$	433,786	$	172,191	$	363,622

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Transamerica Science & Technology

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	15,429	$	12,502	$	21,016
Compensation to sales personnel		9,897		1,808		2,564
Printing and postage		1,745		305		428
Promotional expenses		1,147		209		308
Travel		1,173		220		307
Office and other expenses		5,388		990		1,414
TOTALS	$	34,779	$	16,034	$	26,037

Transamerica Short-Term Bond

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	3,886	$	0	$	24,276
Compensation to sales personnel		9,262		0		7,357
Printing and postage		1,370		0		1,009
Promotional expenses		1,169		0		1,052
Travel		1,153		0		895
Office and other expenses		5,162		0		4,101
TOTALS	$	22,002	$	0	$	38,690

Transamerica Small/Mid Cap Value

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	502,248	$	686,016	$	1,367,665
Compensation to sales personnel		1,684,994		121,222		523,832
Printing and postage		250,065		18,427		82,014
Promotional expenses		214,016		14,922		61,576
Travel		209,532		15,103		65,525
Office and other expenses		934,428		67,168		290,172
TOTALS	$	3,795,283	$	922,858	$	2,390,784

Transamerica Value Balanced

	Class A		Class B		Class C
Promotion and Distribution Expenses
Compensation to dealers	$	67,225	$	36,951	$	77,352
Compensation to sales personnel		20,772		5,248		5,675
Printing and postage		3,322		855		928
Promotional expenses		2,457		603		655
Travel		2,556		645		696
Office and other expenses		11,542		2,927		3,154
TOTALS	$	107,874	$	47,229	$	88,460

* Class T shares of Transamerica Equity are not subject to annual distribution and service fees.

NET ASSET VALUE DETERMINATION

The price at which shares are purchased or redeemed is the net asset value per share (“NAV”) that is next calculated following receipt and acceptance of a purchase order in good order or receipt of a redemption order in good order by the fund or an authorized intermediary.

When Share Price is Determined

The NAV of all funds is determined on each day the New York Stock Exchange (“NYSE”) is open for business. The NAV is not determined on days when the NYSE is closed (generally, New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas). Foreign securities may trade in their primary markets on weekends or other days when a fund does not price its shares (therefore, the NAV of a fund holding foreign securities may change on days when shareholders will not be able to buy or sell shares of the funds).

Investors may purchase shares of the funds at the “offering price” of the shares, which is the net asset value per share plus any applicable initial sales charge.

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Purchase orders received in good order and accepted, and redemption orders received in good order, before the close of business on the NYSE, usually 4:00 p.m. Eastern Time, receive the NAV as determined at the close of the NYSE that day (plus or minus applicable sales charges). Purchase and redemption requests received after the NYSE is closed receive the NAV determined as of the close of the NYSE the next day the NYSE is open.

Purchase orders for shares of the Transamerica asset allocation funds that are received in good order and accepted before the close of business on the NYSE receive the NAV determined as of the close of the NYSE that day. For direct purchases, corresponding orders for shares of the underlying constituent funds are priced on the same day that orders for shares of the asset allocation funds are received and accepted. For purchases of shares of the Transamerica asset allocation funds through the NSCC, orders for shares of the underlying constituent funds will be placed after the receipt and acceptance of the settled purchase order for shares of the asset allocation funds. For investments in separate accounts of insurance companies that invest in Class I shares of the funds, orders for Class I shares will be placed after the receipt and acceptance of the investment in the insurance company separate account.

How NAV is Determined

The NAV of each fund (or class thereof) is calculated by taking the value of its net assets and dividing by the number of shares of the fund (or class) that are then outstanding.

The Board of Trustees has approved procedures to be used to value the funds’ securities for the purposes of determining the funds’ NAV. The valuation of the securities of the funds is determined in good faith by or under the direction of the Board. The Board has delegated certain valuation functions for the funds to TAM.

In general, securities and other investments are valued based on market value priced at the close of regular trading on the NYSE. Fund securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-denominated foreign securities or ADRs, are valued at the closing price on the exchange or system where the security is principally traded. With respect to securities traded on the NASDAQ/NMS, such closing price may be the last reported sale price or the NASDAQ Official Closing Price (“NOCP”). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value should be determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales for that day on the exchange or system where the security is principally traded, then the value should be determined with reference to the last sale price or the NOCP, if applicable, on any other exchange or system. If there have been no sales for that day on any exchange or system, a security is valued at the closing bid quotes on the exchange or system where the security is principally traded, or at the NOCP, if applicable. Foreign securities traded on U.S. exchanges are generally priced using last sale price regardless of trading activity. Securities traded over the counter are valued at the mean of the last bid and asked prices. The market price for debt obligations is generally the price supplied by an independent third party pricing service approved by the funds’ Board, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Investments in securities maturing in 60 days or less may be valued at amortized cost. Foreign securities generally are valued based on quotations from the primary market in which they are traded, and are converted from the local currency into U.S. dollars using current exchange rates. Market quotations for securities prices may be obtained from automated pricing services. Shares of open-end investment companies are generally valued at the net asset value per share reported by that investment company.

When a market quotation for a security is not readily available (which may include closing prices deemed to be unreliable because of the occurrence of a subsequent event), a valuation committee appointed by the Board of Trustees may, in good faith, establish a fair value for the security in accordance with fair valuation procedures adopted by the Board. The types of securities for which such fair value pricing may be required include, but are not limited to: foreign securities, where a significant event occurs after the close of the foreign market on which such security principally trades that is likely to have changed the value of such security, or the closing value is otherwise deemed unreliable; securities of an issuer that has entered into a restructuring; securities whose trading has been halted or suspended; fixed-income securities that have gone into default and for which there is no current market value quotation; and securities that are restricted as to transfer or resale. The funds use a fair value model developed by an independent third party pricing service to price foreign equity securities on days when there is a certain percentage change in the value of a domestic equity security index, as such percentage may be determined by TAM from time to time.

Valuing securities in accordance with fair value procedures involves greater reliance on judgment than valuing securities based on readily available market quotations. The valuation committee makes fair value determinations in good faith in accordance with funds’ valuation procedures. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service. There can be no assurance that a fund could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the fund determines its NAV per share.

DIVIDENDS AND OTHER DISTRIBUTIONS

CLASS A, CLASS B, CLASS C, CLASS I, AND CLASS R SHARES.

An investor may choose among several options with respect to dividends and capital gains distributions payable to the investor. Dividends or other distributions will be paid in full and fractional shares at the net asset value determined as of the ex-dividend date unless the shareholder has elected another distribution option as described in the prospectus. The quarterly ex-dividend date for Transamerica Asset Allocation — Conservative Portfolio will be 3 business days following the ex-dividend date of the underlying Transamerica funds in which it invests. The December annual ex-dividend date for all other Asset Allocation funds will be 3 business

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days following the ex-dividend date of the underlying Transamerica funds in which they invest. Transaction confirmations and checks for payments designated to be made in cash generally will be mailed on the payable date. The per share income dividends on Class B and Class C shares (also Class R shares) of a fund are anticipated to be lower than the per share income dividends on Class A shares of that fund (and Class T shares of Transamerica Equity and Class I), as a result of higher distribution and service fees applicable to the Class B, Class C, and Class R shares.

SHAREHOLDER ACCOUNTS

CLASS A, CLASS B, CLASS C, CLASS T AND CLASS R SHARES ONLY (NOT APPLICABLE TO CLASS I SHARES).

Detailed information about general procedures for Shareholder Accounts and specific types of accounts is set forth in each fund’s prospectus.

PURCHASE OF SHARES

The following funds are closed to new investments:

Transamerica American Century Large Company Value, Transamerica Clarion Global Real Estate Securities, Transamerica Evergreen Health Care, Transamerica Jennison Growth, Transamerica Marsico Growth, Transamerica MFS International Equity, Transamerica PIMCO Real Return TIPS, and Transamerica PIMCO Total Return.

CLASS A, CLASS B, CLASS C, CLASS I, and CLASS T SHARES.

As stated in the prospectus, the funds currently offer investors a choice of four classes of shares: Class A, Class B, Class C, and Class I shares. As stated in the prospectus, Class I shares are currently primarily offered for investment in certain affiliated funds of funds (also referred to as “strategic asset allocation funds”). Class I shares of the funds are also made available to other investors, including institutional investors such as foreign insurers, domestic insurance companies, and their separate accounts, and eligible retirement plans whose recordkeepers or financial service firm intermediaries have entered into agreements with Transamerica Funds or its agents.

Transamerica Equity also includes Class T shares, which are not available for new investors. (All shares previously designated as Class C2 shares on March 1, 2004 were converted to Class C shares on June 15, 2004. On September 24, 2004, previously existing Class M shares were converted into Class C shares).

Class A, Class B or Class C shares of a fund can be purchased through TCI or through broker-dealers or other financial institutions that have sales agreements with TCI. Shares of each fund are sold at the net asset value per share as determined at the close of the regular session of business on the NYSE next occurring after a purchase order is received and accepted by the fund. (The applicable sales charge is added in the case of Class A and Class T shares.) The prospectus contains detailed information about the purchase of fund shares.

Shareholders whose investments are transferred from one class of shares of a Transamerica fund to another class of shares of the same Transamerica fund for administrative or eligibility reasons also may qualify for a waiver or reduction of sales charges and/or redemption charges in connection with the exchange.

Information on sales charge reductions and/or waivers can also be found on the Transamerica Funds’ website at www.transamericafunds.com.

CLASS R SHARES.

As stated in the prospectus, Class R shares are currently offered for investment only by the following funds: Transamerica Asset Allocation — Conservative Portfolio, Transamerica Asset Allocation — Growth Portfolio, Transamerica Asset Allocation — Moderate Growth Portfolio and Transamerica Asset Allocation — Moderate Portfolio, each a series of Transamerica Funds.

Class R shares are only offered through 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans, defined benefit plans and non-qualified deferred compensation plans (eligible retirement plans).

Class R shares are available only to eligible retirement plans where Class R shares are held on the books of the funds through omnibus or Network Level 3 accounts (either at the plan level or at the level of the financial service firm serving as an intermediary).

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RETIREMENT PLANS

CLASS A, CLASS B, AND CLASS C ONLY (NOT APPLICABLE TO CLASS I AND CLASS R SHARES).

Transamerica Funds offers several types of retirement plans that an investor may establish to invest in shares of a fund with tax deductible dollars. Prototype retirement plan documents for Individual Retirement Accounts, Code Section 403(b)(7) plans and SEP-IRA and SIMPLE IRA plans are available by calling or writing TFS Customer Service. These plans require the completion of separate applications, which are also available from TFS Customer Service. State Street Bank and Trust Company, Kansas City, Missouri (“State Street”), acts as the custodian or trustee under these plans for which it charges an annual fee of $15.00 on each such fund account with a maximum of $30.00 per tax identification number. However, if your combined retirement plan and ESA account(s)’ balance per taxpayer identification number is more than $50,000, there is no fee. To receive additional information or forms on these plans, please call your financial adviser or Transamerica Funds Customer Service at 1-888-233-4339 or write to Transamerica Fund Services, Inc. at P.O. Box 219945, Kansas City, Missouri 64121-9945. No contribution to a retirement plan can be made until the appropriate forms to establish the plan have been completed. It is advisable for an investor considering the funding of any retirement plan to consult with an attorney, retirement plan consultant or financial or tax adviser with respect to the requirements of such plans and the tax aspects thereof.

REDEMPTION OF SHARES

Shareholders may redeem their shares at any time at a price equal to the net asset value per share next determined following receipt of a valid redemption order by the transfer agent, in proper form. Payment will ordinarily be made within three business days of the receipt of a valid redemption order. The value of shares on redemption may be more or less than the shareholder’s cost, depending upon the market value of the fund’s net assets at the time of redemption. Class B shares and Class C shares and certain Class A and Class T share purchases are also subject to a contingent deferred sales charge upon certain redemptions. Class I Shares are not subject to the contingent deferred sales charge.

Shares will normally be redeemed for cash, although each fund retains the right to redeem its shares in kind under unusual circumstances in order to protect the interests of the remaining shareholders by the delivery of securities selected from its assets at its discretion. Transamerica Funds has, however, elected to be governed by Rule 18f-1 under the 1940 Act pursuant to which a fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1% of the net asset value of a fund during any 90-day period for any one shareholder. Should redemptions by any shareholder exceed such limitation, the fund will have the option of redeeming the excess in cash or in kind. If shares are redeemed in kind, the redeeming shareholder might incur brokerage costs in converting the assets to cash. The method of valuing securities used to make redemptions in kind will be the same as the method of valuing portfolio securities described under “Net Asset Value Determination,” and such valuation will be made as of the same time the redemption price is determined. Upon any distributions in kind, shareholders may appeal the valuation of such securities by writing to TFS.

Redemption of shares may be suspended, or the date of payment may be postponed, whenever: (1) trading on the NYSE is restricted, as determined by the SEC, or the NYSE is closed (except for holidays and weekends); (2) the SEC permits such suspension and so orders; or (3) an emergency exists as determined by the SEC so that disposal of securities and determination of net asset value is not reasonably practicable.

The Contingent Deferred Sales Charge (“CDSC”) is waived on redemptions of Class B and Class C (and Class A, C and T, when applicable) in the circumstances described below. (Please note that, effective November 1, 2005, CDSCs were not charged on redemptions of Class A, Class B or Class C shares of the following funds, which are now closed to new investors and investments: Transamerica American Century Large Company Value; Transamerica Clarion Global Real Estate Securities; Transamerica Evergreen Health Care; Transamerica Jennison Growth; Transamerica Marsico Growth; Transamerica MFS International Equity; Transamerica PIMCO Real Return TIPS; and Transamerica PIMCO Total Return.)

(a) Redemption upon Total Disability or Death

A fund will waive the CDSC on redemptions following the death or total disability (as evidenced by a determination of the federal Social Security Administration) of a shareholder, but in the case of total disability only as to shares owned at the time of the initial determination of disability. The transfer agent or distributor will require satisfactory proof of death or disability before it determines to waive the CDSC.

(b) Redemption Pursuant to a Fund’s Systematic Withdrawal Plan

A shareholder may elect to participate in a systematic withdrawal plan (“SWP”) with respect to the shareholder’s investment in a fund. Under the SWP, a dollar amount of a participating shareholder’s investment in the fund will be redeemed systematically by the fund on a periodic basis, and the proceeds paid in accordance with the shareholder’s instructions. The amount to be redeemed and frequency of the systematic withdrawals will be specified by the shareholder upon his or her election to participate in the SWP. The CDSC will be waived on redemptions made under the SWP subject to the limitations described below.

The amount of a shareholder’s investment in a fund at the time election to participate in the SWP is made, with respect to the fund, is hereinafter referred to as the “Initial Account Balance.” The amount to be systematically withdrawn from a fund without the imposition of a CDSC may not exceed a maximum of 12% annually of the shareholder’s current Account value. The funds reserve the right to change the terms and conditions of the SWP and the ability to offer the SWP.

Please Note: The amount redeemed under this waiver does not need to be under a systematic withdrawal plan. If it is not under a systematic withdrawal plan, it is limited to one redemption per calendar year up to 12% of your account balance at the time of redemption.

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(c) Certain Retirement Plan Withdrawals

CDSC is also waived for accounts opened prior to April 1, 2000, on withdrawals from IRS qualified and nonqualified retirement plans, individual retirement accounts, tax-sheltered accounts, and deferred compensation plans, where such withdrawals are permitted under the terms of the plan or account. (This waiver does not apply to transfer of asset redemptions, broker directed accounts or omnibus accounts.)

(d) Investors Who Previously Held Class C2 Shares

As described in the prospectus, upon the close of business on June 15, 2004, Class C2 shares were converted into Class C shares. With regard to the Class C2 shares that converted into Class C shares (or on future investments in Class C shares made through such accounts), accountholders will not pay any CDSC otherwise payable on Class C shares. Upon the close of business on September 24, 2004, Class M shares were converted into Class C shares; for accountholders who also own Class C shares which converted from Class C2 shares, their Class C shares that converted from Class M shares will not be subject to a CDSC and will be subject to the same 12b-1 commission structure applicable to their former Class C2 shares.

(e) Purchases through Merrill Lynch, Pierce, Fenner & Smith Incorporated

Currently, investors who purchase Class C shares of a fund established prior to March 1, 2006 through Merrill Lynch, Pierce, Fenner & Smith Incorporated will not be subject to any CDSC otherwise payable with respect to redemptions of such Class C shares of the funds. Exchanges of Class C shares into a Transamerica Fund established on or after March 1, 2006 through Merrill Lynch, Pierce, Fenner & Smith Incorporated that previously were not subject to a CDSC will continue to not be subject to such fee. This CDSC waiver may be terminated at any time. New and/or subsequent purchases into Transamerica Funds established on or after March 1, 2006 will be subject to a 1.00% CDSC if shares are redeemed within 12 months of purchase.

TAXES

Each fund has qualified (or expects to qualify in its first year), and expects to continue to qualify, for treatment as a regulated investment company (a “RIC”) under the Code. In order to qualify for that treatment, a fund must distribute to its shareholders for each taxable year at least the sum of 90% of its investment company taxable income, computed without regard to the dividends-paid deduction, and 90% of its net exempt-interest income, if any (the “Distribution Requirement”). Each fund must also meet several other requirements. These requirements include the following: (1) a fund must derive at least 90% of its gross income each taxable year from dividends, interest, payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, or other income (including gains from options, futures and forward contracts) derived with respect to its business of investing in such stock, securities or currencies, and net income derived from an interest in qualified publicly traded partnerships; (2) at the close of each quarter of a fund’s taxable year, at least 50% of the value of its total assets must be represented by cash and cash items, U.S. government securities, securities of other RICs and other securities (limited in respect of any one issuer of such other securities to an amount not greater than 5% of the value of the fund’s total assets and to not more than 10% of the outstanding voting securities of the issuer); and (3) at the close of each quarter of a fund’s taxable year, not more than 25% of the value of its total assets may be invested in securities (other than U.S. government securities or the securities of other RICs) of any one issuer, in securities (other than securities of other RICs) of two or more issuers that the fund controls and that are engaged in the same, similar or related tradees or businesses, or in securities of one or more qualified publicly traded partnerships.

If a fund qualifies as a RIC and timely distributes to its shareholders substantially all of its net income and net capital gains, then the fund should have little or no income taxable to it under the Code. A fund may designate certain amounts retained as undistributed net capital gain in a notice to its shareholders, who (i) will be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their proportionate shares of the undistributed amount so designated, (ii) will be entitled to credit their proportionate shares of the income tax paid by the fund on that undistributed amount against their federal income tax liabilities and to claim refunds to the extent such credits exceed their liabilities and (iii) will be entitled to increase their tax basis, for federal income tax purposes, in their shares by an amount equal to the excess of the amount of undistributed net capital gain included in their respective income over their respective income tax credits.

For U.S. federal income tax purposes, a fund is permitted to carry forward a net capital loss for any year to offset its capital gains, if any, for up to eight years following the year of the loss. To the extent subsequent capital gains are offset by such losses, they will not result in U.S. federal income tax liability to the fund and may not be distributed as such to shareholders. The funds may not carry forward any losses other than net capital losses.

Assuming a fund has sufficient earnings and profits, its shareholders generally are required to include distributions from the fund (whether paid in cash or reinvested in additional shares) either as ordinary income, to the extent the distributions are attributable to the fund’s investment income (except for qualified dividend income as discussed below), net short-term capital gain and certain net realized foreign exchange gains, or as capital gains, or as capital gains, to the extent of the fund’s net capital gain (i.e., the fund’s net long-term capital gains over net short-term capital losses). If a fund fails to qualify as a RIC or fails to meet the Distribution Requirement, the fund will be subject to U.S. federal, and possibly state, corporate taxes on its taxable income and gains, and distributions to its shareholders will constitute ordinary dividend income to the extent of the fund’s available earnings and profits.

Distributions by a fund in excess of its current and accumulated earnings and profits will be treated as a return of capital to the extent of (and in reduction of) the shareholder’s tax basis in its shares, and any such amount in excess of that basis will be treated as gain from the sale of shares, as discussed below.

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A fund will be subject to a nondeductible 4% excise tax to the extent it fails to distribute by the end of any calendar year substantially all of its ordinary income (for that calendar year) and capital gain net income (for the one-year period generally ending on October 31 of that year), increased or decreased by certain other amounts. Each fund intends to distribute annually a sufficient amount of any taxable income and capital gains so as to avoid liability for this excise tax.

Although dividends generally will be treated as distributed when paid, any dividend declared by a fund in October, November or December, payable to shareholders of record during such a month, and paid during the following January will be treated for U.S. federal income tax purposes as received by shareholders on December 31 of the calendar year in which it was declared. In addition, certain other distributions made after the close of a taxable year of a fund may be “spilled back” and treated for certain purposes as paid by the relevant fund during such taxable year. In such case, shareholders generally will be treated as having received such dividends in the taxable year in which the distributions were actually made. For purposes of calculating the amount of a RIC’s undistributed income and gain subject to the 4% excise tax described above, such “spilled back” dividends are treated as paid by the RIC when they are actually paid.

U.S. federal income tax law generally provides for a maximum tax rate for individual taxpayers of 15% on long-term capital gains and on certain dividends on corporate stock. These rates do not apply to corporate taxpayers. Under current law, the rates will not apply to any taxpayers in taxable years beginning after December 31, 2010. The following are guidelines for how certain distributions by the funds to individual taxpayers are generally treated for U.S. federal income tax purposes:

• Distributions of net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) will be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets).

• Distributions designated by a fund as “qualified dividend income,” as described below, may also be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets).

• Other distributions, including distributions of earnings from other dividends paid to the fund, interest income, other types of ordinary income and short-term capital gains, will be taxed at the ordinary income tax rate applicable to the taxpayer.

Qualified dividend income generally means dividend income received from a fund’s investments in commom and preferred stock of U.S. companies and stock of certain “qualified foreign corporations,” provided that certain holding period and other requirements are met by both the fund and the shareholders. If 95% or more of a fund’s gross income (calculated without taking into account net capital gain from sales or other dispositions of stock or securities) consists of qualified dividend income, that fund may designate all distributions of such income as qualified dividend income.

A foreign corporation is treated as a qualified foreign corporation for this purpose if it is incorporated in a possession of the United States or it is eligible for the benefits of certain income tax treaties with the United States and meets certain additional requirements. Certain foreign corporations that are not otherwise qualified foreign corporations will be treated as qualified foreign corporations with respect to dividends paid by them if the stock with respect to which the dividends are paid is readily tradable on an established securities market in the United States. Passive foreign investment companies are not qualified foreign corporations for this purpose.

A dividend that is attributable to qualified dividend income of a fund and that is paid by the fund to a shareholder will not be taxable as qualified dividend income to such shareholder (1) if the dividend is received with respect to any share of the fund held for fewer than 61 days during the 121-day period beginning on the date which is 60 days before the date on which such share became “ex-dividend” with respect to such dividend, (2) to the extent that the shareholder is under an obligation (whether pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property, or (3) if the shareholder elects to have the dividend treated as investment income for purposes of the limitation on deductibility of investment interest. The “ex-dividend” date is the date on which the owner of the share at the commencement of such date is entitled to receive the next issued dividend payment for such share even if the share is sold by the owner on that date or thereafter.

Certain dividends received by a fund from U.S. corporations (generally, dividends received by the fund in respect of any share of stock (1) with a tax holding period of at least 46 days during the 91-day period beginning on the date that is 45 days before the date on which the stock becomes ex-dividend as to that dividend and (2) that is held in an unleveraged position) and distributed and designated by the fund may be eligible for the 70% dividends-received deduction generally available to corporations under the Code. Certain preferred stock must have a holding period of at least 91 days during the 181-day period beginning on the date that is 90 days before the date on which the stock becomes ex-dividend as to that dividend in order to be eligible. Capital gain dividends distributed to a fund from other RICs are not eligible for the dividends-received deduction. In order to qualify for the deduction, corporate shareholders must meet the minimum holding period requirement stated above with respect to their fund shares, taking into account any holding period reductions from certain hedging or other transactions or positions that diminish their risk of loss with respect to their fund shares, and, if they borrow to acquire or otherwise incur debt attributable to fund shares, they may be denied a portion of the dividends-received deduction with respect to those shares. The entire dividend, including the otherwise deductible amount, will be included in determining the excess, if any, of a corporation’s adjusted current earnings over its alternative minimum taxable income, which may increase a corporation’s alternative minimum tax liability. Any corporate shareholder should consult its tax advisor regarding the possibility that its tax basis in its shares may be reduced, for U.S. federal income tax purposes, by reason of “extraordinary dividends” received with respect to the shares and, to the extent such basis would be reduced below zero, current recognition of income may be required.

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Any fund distribution will have the effect of reducing the per share net asset value of shares in the fund by the amount of the distribution. Shareholders purchasing shares shortly before the record date of any distribution that is not declared daily may thus pay the full price for the shares and then effectively receive a portion of the purchase price back as a taxable distribution.

The U.S. federal income tax status of all distributions, including the portion of such distributions which may qualify for treatment as qualified dividend income, will be reported to shareholders annually.

If a fund is the holder of record of any stock on the record date for any dividends payable with respect to such stock, such dividends will be included in the fund’s gross income not as of the date received, but as of the later of (a) the date such stock became ex-dividend with respect to such dividends or (b) the date the fund acquired such stock. Accordingly, in order to satisfy its income distribution requirements, a fund may be required to pay dividends based on anticipated earnings, and shareholders may receive dividends in an earlier year than would otherwise be the case.

Upon the sale or other disposition of fund shares, or upon receipt of a distribution in complete liquidation of a fund, a shareholder usually will realize a capital gain or loss. This capital gain or loss may be long-term or short-term, generally depending upon the shareholder’s holding period for the shares. For tax purposes, a loss will be disallowed on the sale or exchange of shares if the disposed of shares are replaced (including replacement by shares acquired pursuant to a dividend reinvestment plan) within a 61-day period beginning 30 days before and ending 30 days after the date of the sale or exchange of such shares. Should the replacement of such shares fall within this 61-day period, the basis of the acquired shares will be adjusted to reflect the disallowed loss. Any loss realized by the shareholder on its disposition of fund shares held by the shareholder for six months or less will be treated as a long-term capital loss to the extent of any amounts treated as distributions to the shareholder of long-term capital gain with respect to such shares (including any amounts credited to the shareholder as undistributed capital gains).

Under Treasury regulations, if a shareholder recognizes a loss with respect to fund shares of $2 million or more for an individual shareholder, or $10 million or more for a corporate shareholder, in any single taxable year (or certain greater amounts over a combination of years), the shareholder must file with the IRS a disclosure statement on Form 8886. Shareholders who own portfolio securities directly are in many cases excepted from this reporting requirement but, under current guidance, shareholders of regulated investment companies are not excepted. A shareholder who fails to make the required disclosure to the IRS may be subject to substantial penalties. The fact that a loss is reportable under these regulations does not affect the legal determination of whether or not the taxpayer’s treatment of the loss is proper. Shareholders should consult with their tax advisors to determine the applicability of these regulations in light of their individual circumstances.

An Asset Allocation fund will not be able to offset gains distributed by any underlying fund in which it invests against losses incurred by another underlying fund in which it invests because the underlying funds cannot distribute losses. An Asset Allocation fund’s redemptions of shares in an underlying fund, including those resulting from changes in the allocation among underlying funds, could cause the Asset Allocation fund to recognize taxable gain or loss. A portion of any such gains may be short-term capital gains that would be distributable as ordinary income to shareholders of the Asset Allocation fund. Further, a portion of losses on redemptions of shares in the underlying funds may be deferred. Short-term capital gains earned by an underlying fund will be treated as ordinary dividends when distributed to an Asset Allocation fund and therefore may not be offset by any short-term capital losses incurred by that Asset Allocation fund. Thus, an Asset Allocation fund’s short-term capital losses may offset its long-term capital gains, which might otherwise be eligible for the reduced U.S. federal income tax rates for individuals, discussed above. As a result of these factors, the use of the fund-of-funds structure by the Asset Allocation funds could adversely affect the amount, timing and character of distributions to their shareholders. The Asset Allocation funds will also not be able to pass through from underlying funds any potential benefit from the foreign tax credit or the tax-exempt status of income derived from certain state or municipal obligations.

The funds may be subject to withholding and other taxes imposed by foreign countries, including taxes on interest, dividends and capital gains with respect to their investments in those countries. Any such taxes would, if imposed, reduce the yield on or return from those investments. Tax conventions between certain countries and the U.S. may reduce or eliminate such taxes in some cases. If more than 50% of a fund’s total assets at the close of any taxable year consist of stock or securities of foreign corporations, the fund may elect to pass through to its shareholders their pro rata shares of qualified foreign taxes paid by the fund for that taxable year. If the fund so elects, shareholders would be required to include such taxes in their gross incomes (in addition to the dividends and distributions they actually receive), would treat such taxes as foreign taxes paid by them, and as described below may be entitled to a tax deduction for such taxes or a tax credit, subject to a holding period requirement and other limitations under the Code.

Qualified foreign taxes generally include taxes that would be treated as income taxes under U.S. tax regulations but do not include most other taxes, such as stamp taxes, securities transaction taxes, and similar taxes. If a fund qualifies to make, and makes, the election described above, shareholders may deduct their pro rata portion of qualified foreign taxes paid by the fund for that taxable year in computing their income subject to U.S. federal income taxation or, alternatively, claim them as credits, subject to applicable limitations under the Code, against their U.S. federal income taxes. Shareholders who do not itemize deductions for U.S. federal income tax purposes will not, however, be able to deduct their pro rata portion of qualified foreign taxes paid by the fund, although such shareholders will be required to include their shares of such taxes in gross income if the fund makes the election described above. No deduction for such taxes will be permitted to individuals in computing their alternative minimum tax liability.

If a fund makes this election and a shareholder chooses to take a credit for the foreign taxes deemed paid by such shareholder, the amount of the credit that may be claimed in any year may not exceed the same proportion of the U.S. tax against which such credit is taken that the shareholder’s taxable income from foreign sources (but not in excess of the shareholder’s entire taxable income) bears to

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his entire taxable income. For this purpose, long-term and short-term capital gains the fund realizes and distributes to shareholders will generally not be treated as income from foreign sources in their hands, nor will distributions of certain foreign currency gains subject to Section 988 of the Code or of any other income realized by the fund that is deemed, under the Code, to be U.S.-source income in the hands of the fund. This foreign tax credit limitation may also be applied separately to certain specific categories of foreign-source income and the related foreign taxes. As a result of these rules, which may have different effects depending upon each shareholder’s particular tax situation, certain shareholders may not be able to claim a credit for the full amount of their proportionate share of the foreign taxes paid by a fund. Shareholders who are not liable for U.S. federal income taxes, including tax-exempt shareholders, will ordinarily not benefit from this election. If a fund does make the election, it will provide required tax information to shareholders. The funds generally may deduct any foreign taxes that are not passed through to their shareholders in computing their income available for distribution to shareholders to satisfy applicable tax distribution requirements.

Passive Foreign Investment Companies — Certain funds may invest in the stock of “passive foreign investment companies” (“PFICs”). A PFIC is a foreign corporation that, in general, meets either of the following tests: (1) at least 75% of its gross income is derived from passive investments; or (2) an average of at least 50% of its assets held during the taxable year produce, or are held for the production of, passive income. Under certain circumstances, a fund will be subject to federal income tax on gain from the disposition of PFIC shares and on certain distributions from a PFIC (collectively, “excess distributions”), plus interest thereon, even if the fund distributes the excess distributions as a taxable dividend to its shareholders. If a fund invests in a PFIC and elects in the first year in which it holds such investment (or if it elects subsequently and makes certain other elections) to treat the PFIC as a “qualified electing fund,” then in lieu of the foregoing tax and interest obligation, the fund will be required to include in income each year its pro rata share of the qualified electing fund’s annual ordinary earnings and net capital gain (the excess of net long-term capital gains over net short-term capital losses). This income inclusion is required even if the PFIC does not distribute such income and gains to the fund, and the amounts so included would be subject to the Distribution Requirement described above. In many instances it will be very difficult, if not impossible, to make this election because of certain requirements thereof. In order to distribute any such income and gains and satisfy the distribution requirements applicable to RICs, a fund may be required to liquidate portfolio securities that it might otherwise have continued to hold, potentially resulting in additional taxable gain or loss to the fund.

A fund may, in the alternative, elect to mark to market its PFIC stock at the end of each taxable year, with the result that unrealized gains are treated as though they were realized as of such date. Any such gains will be ordinary income rather than capital gain. In order for a fund making this election to distribute any such income and gains and satisfy the distribution requirements applicable to RICs, the fund may be required to liquidate portfolio securities that it might otherwise have continued to hold, potentially resulting in additional taxable gain or loss to the fund. If the mark-to-market election were made, tax at the fund level under the excess distribution rules would be eliminated, but a fund could still incur nondeductible interest charges if it makes the mark-to-market election in a year after the first taxable year in which it acquired the PFIC stock.

Options, Futures and Forward Contracts and Swap Agreements — Certain options, futures contracts, and forward contracts in which a fund may invest may be “Section 1256 contracts.” Gains or losses on Section 1256 contracts generally are considered 60% long-term and 40% short-term capital gains or losses; however, foreign currency gains or losses arising from certain Section 1256 contracts may be treated as ordinary income or loss. Also, Section 1256 contracts held by a fund at the end of each taxable year are “marked to market” with the result that unrealized gains or losses are treated as though they were realized. In order to distribute any such gains, satisfy the distribution requirements applicable to RICs and avoid taxation, a fund may be required to liquidate portfolio securities that it might otherwise have continued to hold, potentially resulting in additional taxable gain or loss to the fund.

Generally, the hedging transactions undertaken by a fund may result in “straddles” for U.S. federal income tax purposes. The straddle rules may affect the character of gains (or losses) realized by a fund. In addition, losses realized by a fund on positions that are part of a straddle may be deferred under the straddle rules, rather than being taken into account in calculating the taxable income for the taxable year in which such losses are realized. Because only a few regulations implementing the straddle rules have been promulgated, the tax consequences of transactions in options, futures, forward contracts, swap agreements and other financial contracts to a fund are not entirely clear. The transactions may increase the amount of short-term capital gain realized by a fund, which is taxed as ordinary income when distributed to shareholders.

A fund may make one or more of the elections available under the Code which are applicable to straddles. If a fund makes any of the elections, the amount, character and timing of the recognition of gains or losses from the affected straddle positions will be determined under rules that vary according to the election(s) made. The rules applicable under certain of the elections may operate to accelerate the recognition of gains or losses from the affected straddle positions.

Because application of the straddle rules may affect the character of gains or losses, defer losses and/or accelerate the recognition of gains or losses from the affected straddle positions, the amount which must be distributed to shareholders, and which will be taxed to shareholders as ordinary income or long-term capital gain, may be increased or decreased as compared to a fund that did not engage in such hedging transactions.

Because only a few regulations regarding the treatment of swap agreements, and related caps, floors and collars, have been implemented, the tax consequences of such transactions are not entirely clear. The funds intend to account for such transactions in a manner deemed by them to be appropriate, but the Internal Revenue Service might not accept such treatment. If it did not, the status of a fund as a RIC might be affected.

The requirements applicable to a fund’s qualification as a RIC may limit the extent to which a fund will be able to engage in transactions in options, futures contracts, forward contracts, swap agreements and other financial contracts.

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Certain hedging activities may cause a dividend that would otherwise be subject to the lower tax rate applicable to qualified dividend income to instead be taxed at the rate of tax applicable to ordinary income.

Original Issue Discount — If a fund invests in certain pay-in-kind securities, zero coupon securities, deferred interest securities or, in general, any other securities with original issue discount (or with market discount if the fund elects to include market discount in income currently), the fund generally must accrue income on such investments for each taxable year, which generally will be prior to the receipt of the corresponding cash payments. However, each fund must distribute to its shareholders, at least annually, all or substantially all of its investment company taxable income (determined without regard to the deduction for dividends paid), including any such accrued income, to qualify for treatment as a regulated investment company under the Code and avoid U.S. federal income and excise taxes. Therefore, a fund may have to dispose of its portfolio securities to generate cash, or may have to borrow the cash, to satisfy distribution requirements. Such a disposition of securities may potentially result in additional taxable gain or loss to a fund.

Constructive Sales — These rules may affect timing and character of gain if a fund engages in transactions that reduce or eliminate its risk of loss with respect to appreciated financial positions. If a fund enters into certain transactions in property while holding substantially identical property, the fund will be treated as if it had sold and immediately repurchased the property and will be taxed on any gain (but not loss) from the constructive sale. The character of any gain from a constructive sale will depend upon the fund’s holding period in the property. Any loss from a constructive sale will be recognized when the property is subsequently disposed of, and the character of such loss will depend on the fund’s holding period and the application of various loss deferral provisions of the Code.

Foreign Currency Transactions — Under the Code, gains or losses attributable to fluctuations in exchange rates which occur between the time a fund accrues income or expenses denominated in a foreign currency (or determined by reference to the value of one or more foreign currencies) and the time that a fund actually receives or makes payment of such income or expenses, generally are treated as ordinary income or ordinary loss. Similarly, on disposition of debt securities denominated in a foreign currency and on disposition of certain futures contracts, forward contracts and options, gains or losses attributable to fluctuations in the value of foreign currency between the date of acquisition of the security or contract and the date of disposition generally are also treated as ordinary gain or loss. Some of the series of Transamerica Funds elect or may elect to treat this foreign currency income as capital gain or capital loss.

Withholding — Each fund is required to withhold (as “backup withholding”) 28% of reportable payments, including dividends, capital gain distributions and the proceeds of redemptions and exchanges or repurchases of fund shares (except for proceeds of redemptions of shares in funds that declare daily dividends), paid to shareholders who have not complied with certain IRS regulations. In order to avoid this withholding requirement, shareholders, other than certain exempt entities, must certify that the Social Security Number or other Taxpayer Identification Number they provide is correct and that they are not currently subject to backup withholding, or that they are exempt from backup withholding. A fund may nevertheless be required to backup withhold if it receives notice from the IRS or a broker that the number provided is incorrect or backup withholding is applicable as a result of previous underreporting of interest or dividend income.

Taxation of Non-U.S. Shareholders. Dividends from net investment income that are paid to a shareholder who, as to the United States, is a nonresident alien individual, a foreign corporation or a foreign estate or foreign trust (each, a “foreign shareholder”) may be subject to a withholding tax at a rate of 30% or any lower applicable tax rate established in a treaty between the United States and the shareholder’s country of residence. For fund taxable years beginning before January 1, 2010, dividends that are derived from “qualified net interest income” and dividends that are derived from “qualified short-term gain” may be exempt from the 30% withholding tax, provided that the distributing fund chooses to follow certain procedures. A fund may choose to not follow such procedures and there can be no assurance as to the amount, if any, of dividends that would not be subject to withholding. Qualified net interest income is a fund’s net income derived from U.S.-source interest and original issue discount, subject to certain exceptions and limitations. Qualified short-term gain generally means the excess of the net short-term capital gain of the fund for the taxable year over its net long-term capital loss, if any. The withholding rules described in this paragraph do not apply to a dividend paid to a foreign shareholder if the dividend income is “effectively connected with the shareholder’s conduct of a trade or business within the United States” and the shareholder provides appropriate tax forms and documentation. Backup withholding (described above) will not be imposed on foreign shareholders who are subject to the 30% withholding tax.

The treatment of dividends and other distributions by a fund to shareholders under the various state income tax laws may not parallel that under U.S. federal income tax law. Qualification as a RIC does not involve supervision of a fund’s management or of its investment policies and practices by any governmental authority.

Shareholders are urged to consult their own tax advisors with specific reference to their own tax situations, including any federal, state, local or foreign tax liabilities.

91

PRINCIPAL SHAREHOLDERS

As of June 1, 2009, the Trustees and officers as a group owned less than 1% of any class of each fund’s outstanding shares. To the knowledge of the management, as of that date, no shareholders owned beneficially or of record 5% or more of the outstanding shares of a class of a fund, except as follows:

Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica AllianceBernstein International Value	I		20.36	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica AllianceBernstein International Value	I		17.52	%
Transamerica International Moderate Growth VP Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica AllianceBernstein International Value	I		12.75	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica AllianceBernstein International Value	I		12.64	%
Transamerica Multi-Manager International Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica AllianceBernstein International Value	I		10.67	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica AllianceBernstein International Value	I		9.20	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica AllianceBernstein International Value	I		7.35	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica American Century Large Company Value	I		43.12	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica American Century Large Company Value	I		32.97	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica American Century Large Company Value	I		17.76	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica American Century Large Company Value	C		7.23	%
NFS LLC FEBO State Street Bank Trust Co Ttee Var Retirement Plans 4 Manhattanville Rd Purchase NY 10577-2139	Transamerica American Century Large Company Value	A		6.34	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica American Century Large Company Value	I		5.44	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Conservative Portfolio	C		23.82	%
Raymond James & Assoc Inc FBO Reliance Dental Mfg Co Inc PSP U/A Dtd Nov 10, 1999 PO Box 38 Worth IL 60482-0038	Transamerica Asset Allocation — Conservative Portfolio	R		17.69	%
NFS LLC FEBO Transamerica Life Ins Company 1150 S Olive St Ste 2700 Los Angeles CA 90015-2211	Transamerica Asset Allocation — Conservative Portfolio	A		16.80	%

92

Name and Address	Fund Name	Class	Pct
Merrill Lynch Pierce Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Conservative Portfolio	R		16.34	%
John D Paci FBO JLB Corporation 401(K) Profit Sharing Plan & Trust 111 Westport Plaza, Suite 1150 Saint Louis MO 63146-3017	Transamerica Asset Allocation — Conservative Portfolio	R		15.51	%
Laura Spurr FBO Huron Potawatomi 401(K) Profit Sharing Plan & Trust 2221 1 1/2 Mile Fulton MI 49052-9602	Transamerica Asset Allocation — Conservative Portfolio	R		14.77	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Conservative Portfolio	B		10.48	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Asset Allocation — Conservative Portfolio	C		10.35	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Conservative Portfolio	A		6.12	%
MG Trust Company Cust. FBO O T Neighoff & Sons Inc 700 17Th St Ste 300 Denver CO 80202-3531	Transamerica Asset Allocation — Growth Portfolio	R		31.85	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Asset Allocation — Growth Portfolio	C		19.50	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Growth Portfolio	C		17.07	%
Merrill Lynch Pierce Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Growth Portfolio	R		16.25	%
NFS LLC FEBO Transamerica Life Ins Company 1150 S Olive St Ste 2700 Los Angeles CA 90015-2211	Transamerica Asset Allocation — Growth Portfolio	A		14.13	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Growth Portfolio	B		8.11	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Asset Allocation — Growth Portfolio	B		7.65	%
MG Trust Company Cust. FBO South Carolina Medical Associa 700 17Th Street, Suite 300 Denver CO 80202-3531	Transamerica Asset Allocation — Growth Portfolio	R		7.11	%
Ned Kneadler FBO LHM Financial Corporation 401(K) Profit Sharing Plan & Trust 10101 N 92Nd St Ste 201 Scottsdale AZ 85258-4553	Transamerica Asset Allocation — Growth Portfolio	R		6.27	%

93

Name and Address	Fund Name	Class	Pct
Counsel Trust DBA MATC FBO Texas Outdoor Power Equipment 401(K) Profit Sharing Plan & Trust 1251 Waterfront Place Suite 525 Pittsburgh PA 15222-4228	Transamerica Asset Allocation — Growth Portfolio	R		5.66	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Asset Allocation — Growth Portfolio	A		5.57	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Moderate Growth Portfolio	R		40.71	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Moderate Growth Portfolio	C		20.49	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Asset Allocation — Moderate Growth Portfolio	C		15.63	%
NFS LLC FEBO Transamerica Life Ins Company 1150 S Olive St Ste 2700 Los Angeles CA 90015-2211	Transamerica Asset Allocation — Moderate Growth Portfolio	A		14.25	%
Ned Kneadler FBO LHM Financial Corporation 401(K) Profit Sharing Plan & Trust 10101 N 92Nd St Ste 201 Scottsdale AZ 85258-4553	Transamerica Asset Allocation — Moderate Growth Portfolio	R		13.55	%
Counsel Trust DBA MATC FBO Makhteshim-Agan Of North America 401K PS Plan 1251 Waterfront Place Suite 525 Pittsburgh PA 15222-4228	Transamerica Asset Allocation — Moderate Growth Portfolio	R		13.04	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Moderate Growth Portfolio	B		7.18	%
Martin L Cohen MD FBO Morristown Pediatric 401(K) Profit Sharing Plan & Trust 261 James Street, Suite 1G Morristown NJ 07960-6348	Transamerica Asset Allocation — Moderate Growth Portfolio	R		6.34	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Asset Allocation — Moderate Growth Portfolio	B		6.25	%
Sterling Trust Company FBO Mr Marcite Inc 401K PO Box 2526 Waco TX 76702-2526	Transamerica Asset Allocation — Moderate Growth Portfolio	R		5.46	%
Merrill Lynch Pierce Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Moderate Portfolio	R		26.00	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Moderate Portfolio	C		23.13	%
NFS LLC FEBO Macatawa Bank/DBA Zeel & Co PO Box 5000 Cincinnati OH 45273-0001	Transamerica Asset Allocation — Moderate Portfolio	R		17.17	%

94

Name and Address	Fund Name	Class	Pct
NFS LLC FEBO Transamerica Life Ins Company 1150 S Olive St Ste 2700 Los Angeles CA 90015-2211	Transamerica Asset Allocation — Moderate Portfolio	A		16.14	%
John Russell FBO Lake Ontario Fruit Inc 401(K) Profit Sharing Plan & Trust 14234 Ridge Road West Albion NY 14411-9163	Transamerica Asset Allocation — Moderate Portfolio	R		13.90	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Asset Allocation — Moderate Portfolio	C		11.31	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Moderate Portfolio	B		9.39	%
MG Trust Company Cust. FBO South Carolina Medical Associa 700 17Th Street, Suite 300 Denver CO 80202-3531	Transamerica Asset Allocation — Moderate Portfolio	R		8.57	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Asset Allocation — Moderate Portfolio	A		5.44	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Balanced	C		8.85	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Global Allocation	I		29.25	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Global Allocation	I		18.33	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Global Allocation	I		12.09	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Global Allocation	I		8.67	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Global Allocation	I		8.11	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Global Allocation	I		7.88	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Large Cap Value	I		40.72	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Large Cap Value	I		32.27	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Large Cap Value	I		20.04	%

95

Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Large Cap Value	I		6.21	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Natural Resources	I		34.33	%
Transamerica Multi-Manager Alternative Strategies Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Natural Resources	I		17.83	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Natural Resources	I		14.87	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Natural Resources	I		14.36	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Natural Resources	I		10.10	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BlackRock Natural Resources	I		7.96	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BNY Mellon Market Neutral Strategy	I		33.48	%
Transamerica Multi-Manager Alternative Strategies Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BNY Mellon Market Neutral Strategy	I		24.35	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BNY Mellon Market Neutral Strategy	I		17.00	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BNY Mellon Market Neutral Strategy	I		11.43	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica BNY Mellon Market Neutral Strategy	I		10.26	%
Transamerica Asset Management Inc Seed Money Account Attn : Karen Heburn Mailbin 305E600 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Clarion Global Real Estate Securities	C		50.32	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Clarion Global Real Estate Securities	I		38.52	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Clarion Global Real Estate Securities	I		27.84	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Clarion Global Real Estate Securities	I		15.89	%

96

Name and Address	Fund Name	Class	Pct
Transamerica Multi-Manager Alternative Strategies Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Clarion Global Real Estate Securities	I		6.41	%
Transamerica Multi-Manager International Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Clarion Global Real Estate Securities	I		5.75	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Convertible Securities	C		52.77	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Convertible Securities	I		50.06	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Convertible Securities	I		47.80	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Convertible Securities	A		15.88	%
NFS LLC FEBO State Street Bank Trust Co Ttee Various Retirement Plans 4 Manhattanville Rd Purchase NY 10577-2139	Transamerica Convertible Securities	A		13.38	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Convertible Securities	B		10.69	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Convertible Securities	B		8.76	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Convertible Securities	C		8.03	%
Gary U Rolle Ttee Gary U And Della V Rolle Rev Family Trust Dtd 11/10/87 2727 Mandeville Canyon Rd Los Angeles CA 90049-1005	Transamerica Convertible Securities	A		5.44	%
NFS LLC FEBO Transamerica Life Ins Company 1150 S Olive St Ste 2700 Los Angeles CA 90015-2211	Transamerica Convertible Securities	A		5.42	%
Transamerica Asset Management Inc Seed Money Account Attn Karen Heburn Mailbin 305E600 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Convertible Securities	C		5.29	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Equity	I		45.91	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Equity	I		30.30	%

97

Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Equity	I		18.27	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Equity	C		7.95	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen Health Care	I		41.39	%
Transamerica Asset Management Inc Seed Money Account Attn Karen Heburn Mailbin 305E600 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen Health Care	C		37.45	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen Health Care	I		20.09	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen Health Care	I		14.08	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen Health Care	I		12.18	%
Transamerica Asset Management Inc Seed Money Account Attn Karen Heburn Mailbin 305E600 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen Health Care	A		8.65	%
Wells Fargo Investments LLC 625 Marquette Ave S 13th Floor Minneapolis MN 55402-2323	Transamerica Evergreen Health Care	C		7.16	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen International Small Cap	I		24.82	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen International Small Cap	I		20.31	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen International Small Cap	I		17.89	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen International Small Cap	I		11.94	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen International Small Cap	I		8.86	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen International Small Cap	I		6.27	%
Transamerica Multi-Manager International Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Evergreen International Small Cap	I		5.04	%

98

Name and Address	Fund Name	Class	Pct
Transamerica Multi-Manager Alternative Strategies Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Federated Market Opportunity	I		27.33	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Federated Market Opportunity	I		26.39	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Federated Market Opportunity	I		20.91	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Federated Market Opportunity	I		14.29	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Federated Market Opportunity	I		10.25	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Flexible Income	I		24.14	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Flexible Income	I		21.95	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Flexible Income	I		18.96	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Flexible Income	I		15.40	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Flexible Income	C		11.18	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Flexible Income	I		11.12	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Flexible Income	C		10.49	%
Merrill Lynch Pierce Fenner & Smith Inc FBO Of Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Flexible Income	B		8.98	%
Transamerica Asset Allocation — Conservative VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Flexible Income	I		7.89	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Flexible Income	B		5.58	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Growth Opportunities	I		46.47	%

99

Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Growth Opportunities	I		31.46	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Growth Opportunities	I		15.02	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Growth Opportunities	I		6.31	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica High Yield Bond	I		22.93	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica High Yield Bond	I		21.75	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica High Yield Bond	C		17.26	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica High Yield Bond	I		16.01	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica High Yield Bond	I		15.06	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica High Yield Bond	I		13.77	%
Transamerica Asset Allocation — Conservative VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica High Yield Bond	I		9.58	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica High Yield Bond	B		8.81	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica High Yield Bond	C		7.93	%
Merrill Lynch Pierce Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica High Yield Bond	B		5.18	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Jennison Growth	I		35.98	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Jennison Growth	I		31.61	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Jennison Growth	I		23.15	%

100

Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Jennison Growth	I		8.54	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Jennison Growth	C		8.28	%
NFS LLC FEBO Sandra L Fortayon 493 Highland Dr Danville CA 94526-3708	Transamerica Jennison Growth	C		7.45	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica JPMorgan International Bond	I		22.00	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica JPMorgan International Bond	I		19.53	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica JPMorgan International Bond	I		18.39	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica JPMorgan International Bond	I		14.65	%
Transamerica Asset Allocation — Conservative VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica JPMorgan International Bond	I		12.42	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica JPMorgan International Bond	I		9.08	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica JPMorgan Mid Cap Value	I		46.48	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica JPMorgan Mid Cap Value	I		27.60	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica JPMorgan Mid Cap Value	I		20.62	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica JPMorgan Mid Cap Value	I		5.30	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Legg Mason Partners All Cap	C		7.07	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Legg Mason Partners All Cap	C		5.01	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Loomis Sayles Bond	I		22.03	%

101

Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Loomis Sayles Bond	I		20.51	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Loomis Sayles Bond	I		16.57	%
Transamerica Asset Allocation — Conservative VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Loomis Sayles Bond	I		13.29	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Loomis Sayles Bond	I		11.16	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Loomis Sayles Bond	I		9.52	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico Growth	I		42.43	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico Growth	I		31.23	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico Growth	I		18.59	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Marsico Growth	C		9.95	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico Growth	I		6.89	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico International Growth	I		22.80	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico International Growth	I		18.30	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico International Growth	I		12.48	%
Transamerica International Moderate Growth VP Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico International Growth	I		10.53	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico International Growth	I		9.61	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico International Growth	I		8.66	%

102

Name and Address	Fund Name	Class	Pct
Transamerica Multi-Manager International Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico International Growth	I		6.76	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Marsico International Growth	I		5.79	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica MFS International Equity	I		22.72	%
Transamerica International Moderate Growth VP Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica MFS International Equity	I		19.28	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica MFS International Equity	I		17.83	%
Transamerica Asset Allocation — Conservative VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica MFS International Equity	I		15.83	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica MFS International Equity	I		7.27	%
Transamerica Multi-Manager International Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica MFS International Equity	I		6.47	%
Transamerica Multi-Manager Alternative Strategies Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Money Market	I		27.24	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Money Market	I		19.56	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Money Market	I		15.67	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Money Market	I		14.41	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Money Market	I		13.88	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Money Market	C		8.57	%
Universal Life Insurance Company Omnibus Money Market Account PO Box 2145 San Juan PR 00922-2145	Transamerica Money Market	I		8.56	%
Frontier Trust Company FBO Bill’s Volume Sales 401(K) Plan 14 098 PO Box 10758 Fargo ND 58106-0758	Transamerica Money Market	C		5.40	%

103

Name and Address	Fund Name	Class	Pct
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Multi-Manager Alternative Strategies Portfolio	C		15.90	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Multi-Manager Alternative Strategies Portfolio	A		12.76	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Multi-Manager Alternative Strategies Portfolio	C		10.75	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Multi-Manager Alternative Strategies Portfolio	A		7.47	%
Prudential Investment Mgmt Svcs LLC FBO Mututal Fund Clients Attn Pruchoice Unit Gateway Center 3-10th Floor 100 Mulberry St Newark NJ 07102-4056	Transamerica Multi-Manager Alternative Strategies Portfolio	A		5.31	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Multi-Manager International Portfolio	C		23.65	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Multi-Manager International Portfolio	C		23.44	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Multi-Manager International Portfolio	A		17.60	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Multi-Manager International Portfolio	A		17.03	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Multi-Manager International Portfolio	B		13.08	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Multi-Manager International Portfolio	B		10.01	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Neuberger Berman International	I		24.74	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Neuberger Berman International	I		20.76	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Neuberger Berman International	I		15.20	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Neuberger Berman International	I		7.84	%

104

Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Neuberger Berman International	I		7.59	%
Transamerica International Moderate Growth VP Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Neuberger Berman International	I		6.92	%
Transamerica Multi-Manager International Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Neuberger Berman International	I		6.53	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Neuberger Berman International	I		5.78	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Developing Markets	I		24.25	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Developing Markets	I		17.51	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Developing Markets	I		16.39	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Developing Markets	I		10.97	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Developing Markets	I		10.47	%
Transamerica Multi-Manager International Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Developing Markets	I		6.28	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Small- & Mid-Cap Value	I		30.23	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Small- & Mid-Cap Value	I		18.73	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Small- & Mid-Cap Value	I		12.13	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Small- & Mid-Cap Value	I		11.95	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Small- & Mid-Cap Value	I		10.35	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Oppenheimer Small- & Mid-Cap Value	I		9.41	%

105

Name and Address	Fund Name	Class	Pct
Transamerica Asset Management Inc Seed Money Account Attn Karen Heburn Mailbin 305E600 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Real Return TIPS	C		51.67	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Real Return TIPS	I		23.07	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Real Return TIPS	I		19.49	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Real Return TIPS	I		15.96	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Real Return TIPS	I		15.41	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica PIMCO Real Return TIPS	C		15.11	%
Transamerica Asset Allocation — Conservative VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Real Return TIPS	I		13.85	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica PIMCO Real Return TIPS	A		12.13	%
Transamerica Asset Management Inc Seed Money Account Attn Karen Heburn Mailbin 305E600 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Real Return TIPS	A		10.82	%
NFS LLC FEBO FMT Co Cust IRA Rollover FBO Beverly Ferris Nightengale PO Box 2767 1151 Shady Lane Mccall ID 83638-2767	Transamerica PIMCO Real Return TIPS	A		10.13	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Real Return TIPS	I		9.49	%
Pershing LLC P.O. Box 2052 Jersey City NJ 07303-2052	Transamerica PIMCO Real Return TIPS	B		7.58	%
State Street Bank Cust IRA A/C Brad D Mclaren 25221 M 32 S Hillman MI 49746-8653	Transamerica PIMCO Real Return TIPS	B		6.33	%
First Clearing, LLC Maurice Flynn IRA FCC As Custodian 1315 Blair St Houston TX 77008-3817	Transamerica PIMCO Real Return TIPS	B		6.18	%
NFS LLC FEBO NFS/FMTC IRA FBO Mary P O’Grady 1100 Belcher Road South Lot 709 Largo FL 33771-3441	Transamerica PIMCO Real Return TIPS	B		5.01	%

106

Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Total Return	I		38.27	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Total Return	I		36.36	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Total Return	I		24.05	%
Transamerica Asset Management Inc Seed Money Account Attn Karen Heburn Mailbin 305E600 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Total Return	C		21.69	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica PIMCO Total Return	C		11.06	%
Transamerica Asset Management Inc Seed Money Account Attn Karen Heburn Mailbin 305E600 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica PIMCO Total Return	A		7.16	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica PIMCO Total Return	B		5.26	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Schroders International Small Cap	I		22.35	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Schroders International Small Cap	I		17.06	%
Transamerica Asset Allocation — Conservative VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Schroders International Small Cap	I		11.46	%
Transamerica Multi-Manager International Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Schroders International Small Cap	I		9.96	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Schroders International Small Cap	I		9.26	%
Transamerica International Moderate Growth VP Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Schroders International Small Cap	I		8.50	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Schroders International Small Cap	I		5.50	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Schroders International Small Cap	I		5.42	%

107

Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Schroders International Small Cap	I		5.06	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Science & Technology	I		48.54	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Science & Technology	I		27.60	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Science & Technology	I		17.40	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Science & Technology	C		8.92	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Science & Technology	I		5.82	%
Merrill Lynch Pierce Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Short-Term Bond	C		23.83	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Short-Term Bond	I		22.40	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Short-Term Bond	I		21.44	%
Merrill Lynch Pierce Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Short-Term Bond	A		15.67	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Short-Term Bond	I		15.07	%
Transamerica Asset Allocation — Conservative VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Short-Term Bond	I		14.10	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Short-Term Bond	I		13.29	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Short-Term Bond	I		11.11	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Short-Term Bond	A		8.87	%

108

Name and Address	Fund Name	Class	Pct
Prudential Investment Mgmt Svcs LLC FBO Mutual Fund Clients Attn: Pruchoice Unit Gateway Center 3-10th Flr 100 Mulberry St Ml Stp NJ 05-11-20 Newark NJ 07102	Transamerica Short-Term Bond	A		5.07	%
NFS LLC FEBO State Street Bank Trust Co Ttee Various Retirement Plans 4 Manhattanville Rd Purchase NY 10577-2139	Transamerica Small/Mid Cap Value	I		100.00	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Small/Mid Cap Value	C		16.00	%
Merrill Lynch Fenner & Smith Inc FBO Its Customers 4800 Deer Lake Dr E Fl 2 Jacksonville FL 32246-6484	Transamerica Small/Mid Cap Value	C		15.55	%
Merrill Lynch Pierce Fenner & Smith Inc For The Sole Benefit Of Its Customers 4800 Deer Lake Dr E FL 2 Jacksonville FL 32246-6484	Transamerica Small/Mid Cap Value	A		11.71	%
Merrill Lynch Pierce Fenner & Smith Inc For The Sole Benefit Of Its Customers 4800 Deer Lake Dr E FL 2 Jacksonville FL 32246-6484	Transamerica Small/Mid Cap Value	B		10.14	%
NFS LLC FEBO Transamerica Life Ins Company 1150 S Olive St Ste 2700 Los Angeles CA 90015-2211	Transamerica Small/Mid Cap Value	A		9.09	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Small/Mid Cap Value	A		8.78	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Small/Mid Cap Value	B		8.29	%
Prudential Investment Mgmt Svcs LLC FBO Mutual Fund Clients Att Pruchoice Unit 3 Gateway Center Fl 11 100 Mulberry St Ml Stp NJ 05-11-20 Newark NJ 07102-4000	Transamerica Small/Mid Cap Value	A		5.82	%
Citigroup Global Markets Inc House Account Attn: Peter Booth 333 W 34th St Fl 7 New York NY 10001-2402	Transamerica Templeton Global	C		9.70	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Third Avenue Value	I		26.44	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Third Avenue Value	I		19.65	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Third Avenue Value	I		13.69	%

109

Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Third Avenue Value	I		13.02	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Third Avenue Value	I		8.90	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Third Avenue Value	I		8.86	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Thornburg International Value	I		23.95	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Thornburg International Value	I		16.35	%
Transamerica Multi-Manager International Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Thornburg International Value	I		14.72	%
Transamerica Asset Allocation — Conservative VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Thornburg International Value	I		13.56	%
Transamerica International Moderate Growth VP Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Thornburg International Value	I		13.23	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Thornburg International Value	I		6.28	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Dynamic Alpha	I		33.91	%
Transamerica Multi-Manager Alternative Strategies Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Dynamic Alpha	I		18.84	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Dynamic Alpha	I		14.90	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Dynamic Alpha	I		14.13	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Dynamic Alpha	I		10.22	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Dynamic Alpha	I		7.94	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Large Cap Value	I		25.61	%

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Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Large Cap Value	I		23.74	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Large Cap Value	I		15.76	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Large Cap Value	I		11.03	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Large Cap Value	I		9.29	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica UBS Large Cap Value	I		7.70	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Emerging Markets Debt	I		24.00	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Emerging Markets Debt	I		22.21	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Emerging Markets Debt	I		15.93	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Emerging Markets Debt	I		14.57	%
Transamerica Asset Allocation — Conservative VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Emerging Markets Debt	I		13.20	%
Transamerica Asset Allocation — Conservative Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Emerging Markets Debt	I		9.59	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Mid-Cap Growth	I		28.42	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Mid-Cap Growth	I		24.53	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Mid-Cap Growth	I		17.83	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Mid-Cap Growth	I		11.31	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Mid-Cap Growth	I		7.70	%

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Name and Address	Fund Name	Class	Pct
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Small Company Growth	I		31.12	%
Transamerica Asset Allocation — Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Small Company Growth	I		20.31	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Small Company Growth	I		18.84	%
Transamerica Asset Allocation — Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Small Company Growth	I		9.59	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica Van Kampen Small Company Growth	I		8.60	%
Transamerica Asset Allocation — Moderate Growth VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica WMC Emerging Markets	I		25.04	%
Transamerica Asset Allocation — Moderate VP Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica WMC Emerging Markets	I		18.48	%
Transamerica Asset Allocation — Moderate Portfolio Investment Account Attn Fund Admin Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica WMC Emerging Markets	I		17.43	%
Transamerica Multi-Manager International Portfolio Investment Account Attn: Fund Admin. Mailstop 305E 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica WMC Emerging Markets	I		16.73	%
Transamerica Asset Allocation — Moderate Growth Portfolio Investment Account Attn Fund Admin Mailstop 515E610 570 Carillon Pkwy St Petersburg FL 33716-1294	Transamerica WMC Emerging Markets	I		11.81	%

MISCELLANEOUS

ORGANIZATION

Each fund is a series of Transamerica Funds, a Delaware statutory trust that currently is governed by an Amended and Restated Declaration of Trust (“Declaration of Trust”) dated November 1, 2007. The Trust, which was organized in 2005, is the successor to a Massachusetts business trust named Transamerica IDEX Mutual Funds. Prior to 2004, that Massachusetts business trust was known as IDEX Mutual Funds, and prior to 1999, as IDEX Series Fund. On January 8, 2008, the Board of Trustees of the Trust, unanimously approved the name change of Transamerica IDEX Mutual Funds to Transamerica Funds, effective March 1, 2008.

SHARES OF BENEFICIAL INTEREST

The Declaration of Trust permits Transamerica Funds to issue an unlimited number of shares of beneficial interest. Shares of Transamerica Funds are fully paid and nonassessable when issued. Shares of Transamerica Funds have no preemptive, cumulative voting, conversion or subscription rights. Shares of Transamerica Funds are fully transferable but Transamerica Funds is not bound to recognize any transfer until it is recorded on the books.

The shares of beneficial interest of each fund are divided into several classes: Class A, Class B, Class C, Class I, Class R (certain Asset Allocation funds only) and Class T (Transamerica Equity only). Each class represents interests in the same assets of the fund and differ as follows: each class of shares has exclusive voting rights on matters pertaining to its plan of distribution or any other matter appropriately limited to that class; the classes are subject to differing sales charges as described in the prospectus; Class B, Class C and Class M shares are subject to ongoing distribution and service fees; each class may bear differing amounts of certain class-specific expenses; each class has a separate exchange privilege. Class T shares have no annual distribution and service fees; Class T shares

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are NOT available to new investors; only existing Class T shareholders may purchase additional Class T shares. (All shares designated as Class C shares prior to March 1, 2004 were renamed as Class C2 shares on that date. All shares designated as Class L shares prior to March 1, 2004 were renamed as Class C shares with different fees and expenses than the previous Class L shares. All shares previously designated as Class C2 shares on March 1, 2004 were converted to Class C shares on June 15, 2004. On September 24, 2004, Class M shares were converted into Class C shares. Transamerica Funds does not anticipate that there will be any conflicts between the interests of holders of the different classes of shares of the same fund by virtue of these classes. On an ongoing basis, the Board of Trustees will consider whether any such conflict exists and, if so, take appropriate action. On any matter submitted to a vote of shareholders of a series or class, each full issued and outstanding share of that series or class has one vote.

The Declaration of Trust provides that each of the Trustees will continue in office until the termination of Transamerica Funds or until the next meeting of shareholders called for the purpose of considering the election or re-election of such Trustee or of a successor to such Trustee, and until his successor, if any, is elected, qualified and serving as a Trustee hereunder. Vacancies may be filled by a majority of the remaining trustees, subject to certain limitations imposed by the 1940 Act. Subject to the foregoing, shareholders have the power to vote for the election and removal of trustees, and on any other matters on which a shareholder vote is required by the 1940 Act or at the request of the Trustees.

INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM

PricewaterhouseCoopers, LLP, located at 4221 West Boy Scout Blvd., Suite 200, Tampa, FL 33607-5745, serves as independent registered certified public accounting firm for Transamerica Funds.

CODES OF ETHICS

Transamerica Funds, TAM, each sub-adviser and TCI each has adopted a code of ethics, as required by applicable law, which is designed to prevent affiliated persons of Transamerica Funds, TAM, a sub-adviser and TCI from engaging in deceptive, manipulative, or fraudulent activities in connection with securities held or to be acquired by the funds (which may also be held by persons subject to a code of ethics). There can be no assurance that the codes of ethics will be effective in preventing such activities.

PROXY VOTING POLICIES AND PROCEDURES

As detailed in the Transamerica Funds’ Proxy Voting Policies and Procedures below, Transamerica Funds uses the proxy voting policies and procedures of the sub-advisers to determine how to vote proxies relating to securities held by Transamerica Funds. The proxy voting policies and procedures of TAM and each sub-adviser are attached or summarized in Appendix A.

Transamerica Funds files Form N-PX, with the complete proxy voting records of the funds for the 12 months ended June 30^th, no later than August 31st of each year. The form is available without charge: (1) from Transamerica Funds, upon request by calling 1-888-233-4339; and (2) on the SEC’s website at www.sec.gov.

TRANSAMERICA FUNDS PROXY VOTING POLICIES AND PROCEDURES.

I. Statement of Principle

Transamerica Funds seeks to assure that proxies received by the funds are voted in the best interests of the funds’ stockholders and have accordingly adopted these procedures.

II. Delegation of Proxy Voting/Adoption of Adviser and Sub-Adviser Policies

Transamerica Funds delegates the authority to vote proxies related to portfolio securities to Transamerica Asset Management, Inc. (the “Adviser”), as investment adviser to each fund, which in turn delegates proxy voting authority for most funds of the Trust to the Sub-Adviser retained to provide day-to-day portfolio management for that fund. The Board of Trustees of the Trust adopts the proxy voting policies and procedures of the Adviser and Sub-Advisers as the proxy voting policies and procedures (each a “Proxy Voting Policy”) that will be used by each of these respective entities when exercising voting authority on behalf of the Trust. These policies and procedures are attached hereto.

III. Annual Review of Proxy Voting Policies of Adviser and Sub-Advisers

No less frequently than once each calendar year, the Proxy Voting Administrator will request each Sub-Adviser to provide a current copy of its Proxy Voting Policy, or certify that there have been no material changes to its Proxy Voting Policy or that all material changes have been previously provided for review, and verify that such Proxy Voting Policy is consistent with those of the funds and Adviser. Any inconsistency between the Sub-Adviser’s Proxy Voting Policy and that of the funds or Adviser shall be reconciled by the Proxy Voting Administrator before presentation for approval by the Board.

The Proxy Voting Administrator will provide an electronic copy of each Board approved Proxy Voting Policy to Legal department for inclusion in applicable SEC filings.

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IV. Securities on Loan

The Boards of Trustees of the Trust has authorized the Adviser, in conjunction with State Street Bank and Trust Company (“State Street”), to lend portfolio securities on behalf of the funds. Securities on loan generally are voted by the borrower of such securities. Should a Sub-Adviser to the funds wish to exercise its vote for a particular proxy, the Adviser will immediately contact State Street and terminate the loan.

Last Revised: July 1, 2008

FINANCIAL STATEMENTS

Audited financial statements for the funds for the fiscal year ended October 31, 2008 are incorporated herein by reference from the Transamerica Funds Annual Report dated October 31, 2008.

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APPENDIX A

AEGON USA Investment Management, LLC

Securities Voting Policy

1. Introduction

     Normally, clients for which AEGON USA Investment Management, LLC (“AUIM”) has sufficient discretionary investment authority expect AUIM to vote client securities in accordance with AUIM’s Securities Voting Policy (the “Policy”). As a result, AUIM will vote on behalf of all client accounts for which it has requisite discretionary authority except for situations in which any client notifies AUIM in writing that it has retained, and intends to exercise, the authority to vote their own securities. Clients may also ask AUIM to vote their securities in accordance with specific guidelines furnished by the client.

     AUIM manages client portfolios of debt securities and neither holds itself out, nor functions to a significant extent, as a manager of equity securities for any client. As a result, the issues with respect to which AUIM votes client securities generally involve amendments to loan documentation, borrower compliance with financial covenants, registration rights, prepayments, and insolvency and other distressed credit situations, rather than issues more commonly voted upon by holders or managers of equity securities, e.g., board of director matters, general matters of corporate governance, choice of auditors and corporate social and environmental positions. Occasionally, however, AUIM clients receive equity securities resulting from the restructure of debt security investments or other special situations.

2. Statement of Policy

     It is the policy of AUIM to vote client securities in the best interest of its clients at all times. In general, votes will be determined on a case-by-case basis, after taking into consideration all factors relevant to the issues presented.

     Because the issues on which AUIM votes client debt securities are unique to each particular borrower and relevant fact situation, and do not lend themselves to broad characterization as do many issues associated with the voting of equity security proxies, AUIM does not maintain voting policy guidelines regarding categories of issues that may come before debt security holders from time to time. AUIM, however, has adopted such guidelines for use in situations in which AUIM votes client equity securities. These guidelines provide a roadmap for arriving at voting decisions and are not meant to be exhaustive of all issues that may be raised in any or all proxy ballots or other voting opportunities. The guidelines are attached to this Policy as Appendix A. To the extent relevant and appropriate, AUIM will consider these guidelines when voting client debt securities.

     The Chief Compliance Officer of AUIM is responsible for monitoring compliance with this Policy. At the discretion of the Chief Compliance Officer, issues related to this Policy may be raised to the level of the Management Review Committee for their consideration. The “Management Review Committee” shall mean a committee of at least three senior managers designated from time to time by the President of AUIM.

3. Use of Independent Third Party

     Because of the expertise of its staff with the issues upon which it votes client debt securities generally, AUIM will not maintain the services of a qualified independent third party (an “Independent Third Party”) to provide guidance on such matters. Nevertheless, in appropriate situations AUIM will consider retaining the services of an Independent Third Party (either directly or via similar engagements made by affiliates) to assist with voting issues associated with client equity securities. In any such case, AUIM will consider the research provided by the Independent Third Party when making voting decisions; however, the final determination on voting rests with AUIM.

4. Conflicts of Interest Between AUIM and Clients

     AUIM recognizes the potential for material conflicts that may arise between its own interests and those of its clients. To address these concerns, AUIM will take one of the following steps to avoid any impropriety or the appearance of impropriety in any situation involving a conflict of interest:

a.	Vote in accordance with the recommendation of the Independent Third Party;
b.	Obtain the guidance of the client(s) whose account(s) are involved in the conflict;
c.	Obtain the review of the General Counsel of AUIM, or
d.	Vote in strict accordance with the Guidelines.

5. Provision of the Policy to Clients

     AUIM will make available to all clients a copy of its Policy. A copy of the Policy will be mailed, either electronically or through the postal service, to any client at any time upon request.

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     At a client’s request, AUIM will make available information with respect to how AUIM voted that particular client’s securities.

Effective: October 5, 2004

AEGON USA INVESTMENT MANAGEMENT, LLC
SECURITIES VOTING POLICY
APPENDIX A
SECURITIES VOTING POLICY GUIDELINES

The following is a concise summary of AUIM’s securities voting policy guidelines.

1. Auditors

Vote FOR proposals to ratify auditors, unless any of the following apply:

• An auditor has a financial interest in or association with the company, and is therefore not independent,

• Fees for non-audit services are excessive, or

• There is reason to believe that the independent auditor has rendered an opinion that is neither accurate nor indicative of the company’s financial position.

2. Board of Directors

Voting on Director Nominees in Uncontested Elections

Votes on director nominees should be made on a CASE-BY-CASE basis, examining the following factors: independence of the board and key board committees, attendance at board meetings, corporate governance provisions and takeover activity, long-term company performance, responsiveness to shareholder proposals, any egregious board actions, and any excessive non-audit fees or other potential auditor conflicts.

Classification/Declassification of the Board

Vote AGAINST proposals to classify the board.

Vote FOR proposals to repeal classified boards and to elect all directors annually.

Independent Chairman (Separate Chairman/CEO)

          Vote on a CASE-BY-CASE basis shareholder proposals requiring that the positions of chairman and CEO be held separately. Because some companies have governance structures in place that counterbalance a combined position, certain factors should be taken into account in determining whether the proposal warrants support. These factors include the presence of a lead director, board and committee independence, governance guidelines, company performance, and annual review by outside directors of CEO pay.

Majority of Independent Directors/Establishment of Committees

Vote FOR shareholder proposals asking that a majority or more of directors be independent unless the board composition already meets the proposed threshold by AUIM’s definition of independence.

Vote FOR shareholder proposals asking that board audit, compensation, and/or nominating committees be composed exclusively of independent directors if they currently do not meet that standard.

3. Shareholder Rights

Shareholder Ability to Act by Written Consent

Vote AGAINST proposals to restrict or prohibit shareholder ability to take action by written consent.

Vote FOR proposals to allow or make easier shareholder action by written consent.

Shareholder Ability to Call Special Meetings

Vote AGAINST proposals to restrict or prohibit shareholder ability to call special meetings.

Vote FOR proposals that remove restrictions on the right of shareholders to act independently of management.

Supermajority Vote Requirements

Vote AGAINST proposals to require a supermajority shareholder vote.

Vote FOR proposals to lower supermajority vote requirements.

Cumulative Voting

Vote AGAINST proposals to eliminate cumulative voting.

Vote proposals to restore or permit cumulative voting on a CASE-BY-CASE basis relative to the company’s other governance provisions.

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Confidential Voting

Vote FOR shareholder proposals requesting that corporations adopt confidential voting, use independent vote tabulators and use independent inspectors of election, as long as the proposal includes a provision for proxy contests as follows: In the case of a contested election, management should be permitted to request that the dissident group honor its confidential voting policy. If the dissidents agree, the policy remains in place. If the dissidents will not agree, the confidential voting policy is waived. Vote FOR management proposals to adopt confidential voting.

4. Proxy Contests

Voting for Director Nominees in Contested Elections

Votes in a contested election of directors must be evaluated on a CASE-BY-CASE basis, considering the factors that include the long-term financial performance, management’s track record, qualifications of director nominees (both slates), and an evaluation of what each side is offering shareholders.

5. Poison Pills

Vote FOR shareholder proposals that ask a company to submit its poison pill for shareholder ratification. Review on a CASE-BY-CASE basis shareholder proposals to redeem a company’s poison pill and management proposals to ratify a poison pill.

6. Mergers and Corporate Restructurings

Vote CASE-BY-CASE on mergers and corporate restructurings based on such features as the fairness opinion, pricing, strategic rationale, and the negotiating process.

7. Reincorporation Proposals

Proposals to change a company’s state of incorporation should be evaluated on a CASE-BY-CASE basis, giving consideration to both financial and corporate governance concerns, including the reasons for reincorporating, a comparison of the governance provisions, and a comparison of the jurisdictional laws. Vote FOR reincorporation when the economic factors outweigh any neutral or negative governance changes.

8. Capital Structure

Common Stock Authorization

Votes on proposals to increase the number of shares of common stock authorized for issuance are determined on a CASE-BY-CASE basis.

Vote AGAINST proposals at companies with dual-class capital structures to increase the number of authorized shares of the class of stock that has superior voting rights.

Vote FOR proposals to approve increases beyond the allowable increase when a company’s shares are in danger of being delisted or if a company’s ability to continue to operate as a going concern is uncertain.

Dual-class Stock

Vote AGAINST proposals to create a new class of common stock with superior voting rights.

Vote FOR proposals to create a new class of nonvoting or subvoting common stock if:

• It is intended for financing purposes with minimal or no dilution to current shareholders

• It is not designed to preserve the voting power of an insider or significant shareholder

9. Executive and Director Compensation

Votes with respect to compensation plans should be determined on a CASE-BY-CASE basis. AUIM reviews Executive and Director compensation plans (including broad-based option plans) in the context of the transfer of shareholder wealth. This review encompasses not only a comparison of a plan relative to peer companies, but also on an absolute basis, considering the cost of the plan vs. the operating income and overall profitability of the firm in question.

Vote AGAINST equity plans that explicitly permit repricing or where the company has a history of repricing without shareholder approval.

Management Proposals Seeking Approval to Reprice Options

Vote AGAINST proposals by management seeking approval to reprice options.

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Employee Stock Purchase Plans

Votes on employee stock purchase plans should be determined on a CASE-BY-CASE basis.

Vote FOR employee stock purchase plans where all of the following apply:

• Purchase price is at least 85 percent of fair market value

• Offering period is 27 months or less, and

• Potential voting power dilution (VPD) is ten percent or less.

Vote AGAINST employee stock purchase plans where any of the opposite conditions apply.

Shareholder Proposals on Compensation

Vote on a CASE-BY-CASE basis for all other shareholder proposals regarding executive and director pay, taking into account company performance, pay level versus peers, pay level versus industry, and long term corporate outlook.

10. Social and Environmental Issues

These issues cover a wide range of topics, including consumer and public safety, environment and energy, general corporate issues, labor standards and human rights, military business, and workplace diversity.

In general, vote CASE-BY-CASE. While a wide variety of factors goes into each analysis, the overall principal guiding all vote recommendations focuses on how the proposal will enhance the economic value of the company.

AllianceBernstein L.P.

Statement of Policies and Procedures for Proxy Voting

1. Introduction

As a registered investment adviser, AllianceBernstein L.P. (“AllianceBernstein”, “we” or “us”) has a fiduciary duty to act solely in the best interests of our clients. We recognize that this duty requires us to vote client securities in a timely manner and make voting decisions that are in the best interests of our clients. Consistent with these obligations, we will disclose our clients’ voting records only to them and as required by mutual fund vote disclosure regulations. In addition, the proxy committees may, after careful consideration, choose to respond to surveys regarding past votes.

This statement is intended to comply with Rule 206(4)-6 of the Investment Advisers Act of 1940. It sets forth our policies and procedures for voting proxies for our discretionary investment advisory clients, including investment companies registered under the Investment Company Act of 1940. This statement applies to AllianceBernstein’s growth and value investment groups investing on behalf of clients in both US and non-US securities.

2. Proxy Policies

This statement is designed to be responsive to the wide range of proxy voting subjects that can have a significant effect on the investment value of the securities held in our clients’ accounts. These policies are not exhaustive due to the variety of proxy voting issues that we may be required to consider. AllianceBernstein reserves the right to depart from these guidelines in order to avoid voting decisions that we believe may be contrary to our clients’ best interests. In reviewing proxy issues, we will apply the following general policies:

2.1. Corporate Governance

AllianceBernstein’s proxy voting policies recognize the importance of good corporate governance in ensuring that management and the board of directors fulfill their obligations to the shareholders. We favor proposals promoting transparency and accountability within a company. We will vote for proposals providing for equal access to the proxy materials so that shareholders can express their views on various proxy issues. We also support the appointment of a majority of independent directors on key committees and separating the positions of chairman and chief executive officer. Finally, because we believe that good corporate governance requires shareholders to have a meaningful voice in the affairs of the company, we will support non-binding shareholder proposals that request that companies amend their by-laws to provide that director nominees be elected by an affirmative vote of a majority of the votes cast.

2.2. Elections of Directors

Unless there is a proxy fight for seats on the Board or we determine that there are other compelling reasons for withholding votes for directors, we will vote in favor of the management proposed slate of directors. That said, we believe that directors have a duty to respond to shareholder actions that have received significant shareholder support. We may withhold votes for directors that fail to act on key issues such as failure to implement proposals to declassify boards, failure to implement a majority vote requirement, failure to submit a rights plan to a shareholder vote or failure to act on tender offers where a majority of shareholders have tendered their shares. In addition, we will withhold votes for directors who fail to attend at least seventy-five percent of board meetings within a given year without a reasonable excuse. Finally, we may withhold votes for directors of non-U.S. issuers where there is insufficient information about the nominees disclosed in the proxy statement.

2.3. Appointment of Auditors

AllianceBernstein believes that the company remains in the best position to choose the auditors and will generally support management’s recommendation. However, we recognize that there may be inherent conflicts when a company’s independent auditor performs substantial non-audit related services for the company. Although we recognize that there may be special

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circumstances that could lead to high levels of non-audit fees in some years, we would normally consider non-audit fees in excess of 70% of total fees paid to the auditing firm to be disproportionate. Therefore, absent unique circumstances, we may vote against the appointment of auditors if the fees for non-audit related services exceed 70% of the total fees paid by the company to the auditing firm or there are other reasons to question the independence of the company’s auditors.

2.4. Changes in Legal and Capital Structure

Changes in a company’s charter, articles of incorporation or by-laws are often technical and administrative in nature. Absent a compelling reason to the contrary, AllianceBernstein will cast its votes in accordance with the company’s management on such proposals. However, we will review and analyze on a case-by-case basis any non-routine proposals that are likely to affect the structure and operation of the company or have a material economic effect on the company. For example, we will generally support proposals to increase authorized common stock when it is necessary to implement a stock split, aid in a restructuring or acquisition or provide a sufficient number of shares for an employee savings plan, stock option or executive compensation plan. However, a satisfactory explanation of a company’s intentions must be disclosed in the proxy statement for proposals requesting an increase of greater than one hundred percent of the shares outstanding. We will oppose increases in authorized common stock where there is evidence that the shares will be used to implement a poison pill or another form of anti-takeover device.

2.5. Corporate Restructurings, Mergers and Acquisitions

AllianceBernstein believes proxy votes dealing with corporate reorganizations are an extension of the investment decision. Accordingly, we will analyze such proposals on a case-by-case basis, weighing heavily the views of our research analysts that cover the company and our investment professionals managing the portfolios in which the stock is held.

2.6. Proposals Affecting Shareholder Rights

AllianceBernstein believes that certain fundamental rights of shareholders must be protected. We will generally vote in favor of proposals that give shareholders a greater voice in the affairs of the company and oppose any measure that seeks to limit those rights. However, when analyzing such proposals we will weigh the financial impact of the proposal against the impairment of shareholder rights.

2.7. Anti-Takeover Measures

AllianceBernstein believes that measures that impede corporate transactions such as takeovers or entrench management not only infringe on the rights of shareholders but may also have a detrimental effect on the value of the company. We will generally oppose proposals, regardless of whether they are advanced by management or shareholders, the purpose or effect of which is to entrench management or excessively or inappropriately dilute shareholder ownership. Conversely, we support proposals that would restrict or otherwise eliminate anti-takeover or anti-shareholder measures that have already been adopted by corporate issuers. For example, we will support shareholder proposals that seek to require the company to submit a shareholder rights plan to a shareholder vote. We will evaluate, on a case-by-case basis, proposals to completely redeem or eliminate such plans. Furthermore, we will generally oppose proposals put forward by management (including the authorization of blank check preferred stock, classified boards and supermajority vote requirements) that appear to be anti-shareholder or intended as management entrenchment mechanisms.

2.8. Executive Compensation

AllianceBernstein believes that company management and the compensation committee of the board of directors should, within reason, be given latitude to determine the types and mix of compensation and benefit awards offered to company employees. Whether proposed by a shareholder or management, we will review proposals relating to executive compensation plans on a case-by-case basis to ensure that the long-term interests of management and shareholders are properly aligned. In general, we will analyze the proposed plans to ensure that shareholder equity will not be excessively diluted. With regard to stock award or option plans, we consider whether the option exercise prices are below the market price on the date of grant and whether an acceptable number of employees are eligible to participate in such programs. We will generally oppose plans that have below market value exercise prices on the date of issuance or permit repricing of underwater stock options without shareholder approval. Other factors such as the company’s performance and industry practice will generally be factored into our analysis. We will support proposals requiring managements to submit severance packages that exceed 2.99 times the sum of an executive officer’s base salary plus bonus that are triggered by a change in control to a shareholder vote. Finally, we will support shareholder proposals requiring companies to expense stock options because we view them as a large corporate expense that should be appropriately accounted for.

2.9. Social and Corporate Responsibility

AllianceBernstein will review and analyze on a case-by-case basis proposals relating to social, political and environmental issues to determine whether they will have a financial impact on shareholder value. We will vote against proposals that are unduly burdensome or result in unnecessary and excessive costs to the company. We may abstain from voting on social proposals that do not have a readily determinable financial impact on shareholder value.

3. Proxy Voting Procedures

3.1. Proxy Voting Committees

Our growth and value investment groups have formed separate proxy voting committees to establish general proxy policies for AllianceBernstein and consider specific proxy voting matters as necessary. These committees periodically review these policies and new types of corporate governance issues, and decide how we should vote on proposals not covered by these policies. When

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a proxy vote cannot be clearly decided by an application of our stated policy, the proxy committee will evaluate the proposal. In addition, the committees, in conjunction with the analyst that covers the company, may contact corporate management and interested shareholder groups and others as necessary to discuss proxy issues. Members of the committee include senior investment personnel and representatives of the Legal and Compliance Department. The committees may also evaluate proxies where we face a potential conflict of interest (as discussed below). Finally, the committees monitor adherence to these policies.

3.2. Conflicts of Interest

AllianceBernstein recognizes that there may be a potential conflict of interest when we vote a proxy solicited by an issuer whose retirement plan we manage, or we administer, who distributes AllianceBernstein sponsored mutual funds, or with whom we or an employee has another business or personal relationship that may affect how we vote on the issuer’s proxy. Similarly, AllianceBernstein may have a potential material conflict of interest when deciding how to vote on a proposal sponsored or supported by a shareholder group that is a client. We believe that centralized management of proxy voting, oversight by the proxy voting committees and adherence to these policies ensures that proxies are voted with only our clients’ best interests in mind. Additionally, we have implemented procedures to ensure that our votes are not the product of a material conflict of interests, including: (i) on an annual basis, the proxy committees will take reasonable steps to evaluate the nature of AllianceBernstein’s and our employees’ material business and personal relationships (and those of our affiliates) with any company whose equity securities are held in client accounts and any client that has sponsored or has material interest in a proposal upon which we will be eligible to vote; (ii) requiring anyone involved in the decision making process to disclose to the chairman of the appropriate proxy committee any potential conflict that they are aware of (including personal relationships) and any contact that they have had with any interested party regarding a proxy vote; (iii) prohibiting employees involved in the decision making process or vote administration from revealing how we intend to vote on a proposal in order to reduce any attempted influence from interested parties; and (iv) where a material conflict of interests exists, reviewing our proposed vote by applying a series of objective tests and, where necessary, considering the views of third party research services to ensure that our voting decision is consistent with our clients’ best interests.

Because under certain circumstances AllianceBernstein considers the recommendation of third party research services, the proxy committees will take reasonable steps to verify that any third party research service is in fact independent based on all of the relevant facts and circumstances. This includes reviewing the third party research service’s conflict management procedures and ascertaining, among other things, whether the third party research service (i) has the capacity and competency to adequately analyze proxy issues; and (ii) can make such recommendations in an impartial manner and in the best interests of our clients.

3.3 Proxies of Certain Non-US Issuers

Proxy voting in certain countries requires “share blocking.” Shareholders wishing to vote their proxies must deposit their shares shortly before the date of the meeting (usually one-week) with a designated depositary. During this blocking period, shares that will be voted at the meeting cannot be sold until the meeting has taken place and the shares are returned to the clients’ custodian banks. Absent compelling reasons to the contrary, AllianceBernstein believes that the benefit to the client of exercising the vote does not outweigh the cost of voting (i.e. not being able to sell the shares during this period). Accordingly, if share blocking is required we generally abstain from voting those shares.

In addition, voting proxies of issuers in non-US markets may give rise to a number of administrative issues that may prevent AllianceBernstein from voting such proxies. For example, AllianceBernstein may receive meeting notices without enough time to fully consider the proxy or after the cut-off date for voting. Other markets require AllianceBernstein to provide local agents with power of attorney prior to implementing AllianceBernstein’s voting instructions. Although it is AllianceBernstein’s policy to seek to vote all proxies for securities held in client accounts for which we have proxy voting authority, in the case of non-US issuers, we vote proxies on a best efforts basis.

3.4. Loaned Securities

Many clients of AllianceBernstein have entered into securities lending arrangements with agent lenders to generate additional revenue. AllianceBernstein will not be able to vote securities that are on loan under these types of arrangements. However, under rare circumstances, for voting issues that may have a significant impact on the investment, we may request that clients recall securities that are on loan if we determine that the benefit of voting outweighs the costs and lost revenue to the client or fund and the administrative burden of retrieving the securities.

3.5. Proxy Voting Records

Clients may obtain information about how we voted proxies on their behalf by contacting their AllianceBernstein administrative representative. Alternatively, clients may make a written request for proxy voting information to: Mark R. Manley, Senior Vice President & Chief Compliance Officer, AllianceBernstein L.P., 1345 Avenue of the Americas, New York, NY 10105.

American Century Investment Management, Inc.

Proxy Voting Guidelines. The Manager is responsible for exercising the voting rights associated with the securities purchased and/or held by the Transamerica American Century Large Company Value. In exercising its voting obligations, the Manager is guided by general fiduciary principles. It must act prudently, solely in the interest of the fund, and for the exclusive purpose of providing benefits to it. The Manager attempts to consider all factors of its vote that could affect the value of the investment. The funds’ board of trustees has approved the Manager’s Proxy Voting Guidelines to govern the Manager’s proxy voting activities.

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The Manager and the board have agreed on certain significant contributors to shareholder value with respect to a number of matters that are often the subject of proxy solicitations for shareholder meetings. The Proxy Voting Guidelines specifically address these considerations and establish a framework for the Manager’s consideration of the vote that would be appropriate for the funds. In particular, the Proxy Voting Guidelines outline principles and factors to be considered in the exercise of voting authority for proposals addressing:

v	Election of Directors
v	Ratification of Selection of Auditors
v	Equity-Based Compensation Plans
v	Anti-Takeover Proposals

Ø	Cumulative Voting
Ø	Staggered Boards
Ø	“Blank Check” Preferred Stock
Ø	Elimination of Preemptive Rights
Ø	Non-targeted Share Repurchase
Ø	Increase in Authorized Common Stock
Ø	“Supermajority” Voting Provisions or Super Voting Share Classes
Ø	“Fair Price” Amendments
Ø	Limiting the Right to Call Special Shareholder Meetings
Ø	Poison Pills or Shareholder Rights Plans
Ø	Golden Parachutes
Ø	Reincorporation
Ø	Confidential Voting
Ø	Opting In or Out of State Takeover Laws

v	Shareholder Proposals Involving Social, Moral or Ethical Matters
v	Anti-Greenmail Proposals
v	Changes to Indemnification Provisions
v	Non-Stock Incentive Plans
v	Director Tenure
v	Directors’ Stock Options Plans
v	Director Share Ownership

Finally, the Proxy Voting Guidelines establish procedures for voting of proxies in cases in which the Manager may have a potential conflict of interest. Companies with which the Manager has direct business relationships could theoretically use these relationships to attempt to unduly influence the manner in which American Century votes on matters for the funds. To ensure that such a conflict of interest does not affect proxy votes cast for the funds, all discretionary (including case-by-case) voting for these companies will be voted in direct consultation with a committee of the independent directors of the funds.

A copy of the Manager’s current Proxy Voting Guidelines are available at www.americancentury.com.

BlackRock Investment Management, LLC

Proxy Voting Policies and Procedures

For BlackRock Advisors, LLC and Its Affiliated SEC Registered Investment Advisers
Effective June, 2008
Table of Contents

	Page
I. SCOPE OF COMMITTEE RESPONSIBILITIES		A-8
II. SPECIAL CIRCUMSTANCES		A-9
A. Routine Consents		A-9
B. Securities on Loan		A-9
C. Voting Proxies for Non-US Companies		A-9
D. Securities Sold After Record Date		A-10
E. Conflicts of Interest		A-10
III. VOTING GUIDELINES		A-10
A. Boards of Directors		A-10
B. Auditors		A-12
C. Compensation and Benefits		A-12
D. Capital Structure		A-14
E. Corporate Charter and By-Laws		A-15
F. Corporate Meetings		A-15
G. Investment Companies		A-16
H. Environmental and Social Issues		A-16
IV. NOTICE TO CLIENTS		A-18

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These Proxy Voting Policies and Procedures (the “Policy”) for BlackRock Advisors, LLC and its affiliated U.S. registered investment advisers¹ (“BlackRock”) reflect our duty as a fiduciary under the Investment Advisers Act of 1940 (the “Advisers Act”) to vote proxies in the best interests of our clients. BlackRock serves as the investment manager for investment companies, other commingled investment vehicles and/or separate accounts of institutional and other clients. The right to vote proxies for securities held in such accounts belongs to BlackRock’s clients. Certain clients of BlackRock have retained the right to vote such proxies in general or in specific circumstances.² Other clients, however, have delegated to BlackRock the right to vote proxies for securities held in their accounts as part of BlackRock’s authority to manage, acquire and dispose of account assets.

When BlackRock votes proxies for a client that has delegated to BlackRock proxy voting authority, BlackRock acts as the client’s agent. Under the Advisers Act, an investment adviser is a fiduciary that owes each of its clients a duty of care and loyalty with respect to all services the adviser undertakes on the client’s behalf, including proxy voting. BlackRock is therefore subject to a fiduciary duty to vote proxies in a manner BlackRock believes is consistent with the client’s best interests,³ whether or not the client’s proxy voting is subject to the fiduciary standards of the Employee Retirement Income Security Act of 1974 (“ERISA”).⁴ When voting proxies for client accounts (including investment companies), BlackRock’s primary objective is to make voting decisions solely in the best interests of clients and ERISA clients’ plan beneficiaries and participants. In fulfilling its obligations to clients, BlackRock will seek to act in a manner that it believes is most likely to enhance the economic value of the underlying securities held in client accounts.⁵ It is imperative that BlackRock considers the interests of its clients, and not the interests of BlackRock, when voting proxies and that real (or perceived) material conflicts that may arise between BlackRock’s interest and those of BlackRock’s clients are properly addressed and resolved.

Advisers Act Rule 206(4)-6 was adopted by the SEC in 2003 and requires, among other things, that an investment adviser that exercises voting authority over clients’ proxy voting adopt policies and procedures reasonably designed to ensure that the adviser votes proxies in the best interests of clients, discloses to its clients information about those policies and procedures and also discloses to clients how they may obtain information on how the adviser has voted their proxies.

In light of such fiduciary duties, the requirements of Rule 206(4)-6, and given the complexity of the issues that may be raised in connection with proxy votes, BlackRock has adopted these policies and procedures. BlackRock’s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the “Committee”), addresses proxy voting issues on behalf of BlackRock and its clients.⁶ The Committee is comprised of senior members of BlackRock’s Portfolio Management Group and advised by BlackRock’s Legal and Compliance Department.

I. SCOPE OF COMMITTEE RESPONSIBILITIES

The Committee shall have the responsibility for determining how to address proxy votes made on behalf of all BlackRock clients, except for clients who have retained the right to vote their own proxies, either generally or on any specific matter. In so doing, the Committee shall seek to ensure that proxy votes are made in the best interests of clients, and that proxy votes are determined in a manner free from unwarranted or inappropriate influences. The Committee shall also oversee the overall administration of proxy voting for BlackRock accounts.⁷

The Committee shall establish BlackRock’s proxy voting guidelines, with such advice, participation and research as the Committee deems appropriate from portfolio managers, proxy voting services or other knowledgeable interested parties. As it is anticipated that there will not necessarily be a “right” way to vote proxies on any given issue applicable to all facts and circumstances, the Committee shall also be responsible for determining how the proxy voting guidelines will be applied to specific proxy votes, in light of each issuer’s unique structure, management, strategic options and, in certain circumstances, probable economic and other anticipated consequences of alternative actions. In so doing, the Committee may determine to vote a particular proxy in a manner contrary to its generally stated guidelines.

The Committee may determine that the subject matter of certain proxy issues are not suitable for general voting guidelines and requires a case-by-case determination, in which case the Committee may elect not to adopt a specific voting guideline applicable to such issues. BlackRock believes that certain proxy voting issues — such as approval of mergers and other significant corporate transactions — require investment analysis akin to investment decisions, and are therefore not suitable for general guidelines. The Committee may

1	The Policy does not apply to BlackRock Asset Management U.K. Limited and BlackRock Investment Managers International Limited, which are U.S. registered investment advisers based in the United Kingdom.
2	In certain situations, a client may direct BlackRock to vote in accordance with the client’s proxy voting policies. In these situations, BlackRock will seek to comply with such policies to the extent it would not be inconsistent with other BlackRock legal responsibilities.
3	Letter from Harvey L. Pitt, Chairman, SEC, to John P.M. Higgins, President, Ram Trust Services (February 12, 2002) (Section 206 of the Investment Advisers Act imposes a fiduciary responsibility to vote proxies fairly and in the best interests of clients); SEC Release No. IA-2106 (February 3, 2003).
4	DOL Interpretative Bulletin of Sections 402, 403 and 404 of ERISA at 29 C.F.R. 2509.94-2
5	Other considerations, such as social, labor, environmental or other policies, may be of interest to particular clients. While BlackRock is cognizant of the importance of such considerations, when voting proxies it will generally take such matters into account only to the extent that they have a direct bearing on the economic value of the underlying securities. To the extent that a BlackRock client desires to pursue a particular social, labor, environmental or other agenda through the proxy votes made for its securities held through BlackRock as investment adviser, BlackRock encourages the client to consider retaining direct proxy voting authority or to appoint independently a special proxy voting fiduciary other than BlackRock.
6	Subject to the Proxy Voting Policies of Merrill Lynch Bank & Trust Company FSB, the Committee may also function jointly as the Proxy Voting Committee for Merrill Lynch Bank & Trust Company FSB trust accounts managed by personnel dually-employed by BlackRock.
7	The Committee may delegate day-to-day administrative responsibilities to other BlackRock personnel and/or outside service providers, as appropriate.

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elect to adopt a common BlackRock position on certain proxy votes that are akin to investment decisions, or determine to permit portfolio managers to make individual decisions on how best to maximize economic value for the accounts for which they are responsible (similar to normal buy/sell investment decisions made by such portfolio managers).⁸

While it is expected that BlackRock, as a fiduciary, will generally seek to vote proxies over which BlackRock exercises voting authority in a uniform manner for all BlackRock clients, the Committee, in conjunction with the portfolio manager of an account, may determine that the specific circumstances of such account require that such account’s proxies be voted differently due to such account’s investment objective or other factors that differentiate it from other accounts. In addition, on proxy votes that are akin to investment decisions, BlackRock believes portfolio managers may from time to time legitimately reach differing but equally valid views, as fiduciaries for BlackRock’s clients, on how best to maximize economic value in respect of a particular investment.

The Committee will also be responsible for ensuring the maintenance of records of each proxy vote, as required by Advisers Act Rule 204-2.9 All records will be maintained in accordance with applicable law. Except as may be required by applicable legal requirements, or as otherwise set forth herein, the Committee’s determinations and records shall be treated as proprietary, nonpublic and confidential.

The Committee shall be assisted by other BlackRock personnel, as may be appropriate. In particular, the Committee has delegated to the BlackRock Operations Department responsibility for monitoring corporate actions and ensuring that proxy votes are submitted in a timely fashion. The Operations Department shall ensure that proxy voting issues are promptly brought to the Committee’s attention and that the Committee’s proxy voting decisions are appropriately disseminated and implemented.

To assist BlackRock in voting proxies, the Committee may retain the services of a firm providing such services. BlackRock has currently retained Risk Metrics Group, Inc. in that role. Risk Metrics Group, Inc. is an independent adviser that specializes in providing a variety of fiduciary-level proxy-related services to institutional investment managers, plan sponsors, custodians, consultants, and other institutional investors. The services provided to BlackRock may include, but are not limited to, in-depth research, voting recommendations (which the Committee is not obligated to follow), vote execution, and recordkeeping.

II. SPECIAL CIRCUMSTANCES

A. Routine Consents

BlackRock may be asked from time to time to consent to an amendment to, or grant a waiver under, a loan agreement, partnership agreement, indenture or other governing document of a specific financial instrument held by BlackRock clients. BlackRock will generally treat such requests for consents not as “proxies” subject to these Proxy Voting Policies and Procedures but as investment matters to be dealt with by the responsible BlackRock investment professionals, provided that such consents (i) do not relate to the election of a board of directors or appointment of auditors of a public company, and (ii) either (A) would not otherwise materially affect the structure, management or control of a public company, or (B) relate to a company in which BlackRock clients hold only interests in bank loans or debt securities and are consistent with customary standards and practices for such instruments.

B. Securities on Loan

Registered investment companies that are advised by BlackRock as well as certain of our advisory clients may participate in securities lending programs. Under most securities lending arrangements, securities on loan may not be voted by the lender (unless the loan is recalled). BlackRock believes that each client has the right to determine whether participating in a securities lending program enhances returns, to contract with the securities lending agent of its choice and to structure a securities lending program, through its lending agent, that balances any tension between loaning and voting securities in a matter that satisfies such client. If client has decided to participate in a securities lending program, BlackRock will therefore defer to the client’s determination and not attempt to seek recalls solely for the purpose of voting routine proxies as this could impact the returns received from securities lending and make the client a less desirable lender in a marketplace. Where a client retains a lending agent that is unaffiliated with BlackRock, BlackRock will generally not seek to vote proxies relating to securities on loan because BlackRock does not have a contractual right to recall such loaned securities for the purpose of voting proxies. Where BlackRock or an affiliate acts as the lending agent, BlackRock will also generally not seek to recall loaned securities for proxy voting purposes, unless the portfolio manager responsible for the account or the Committee determines that voting the proxy is in the client’s best interest and requests that the security be recalled.

C. Voting Proxies for Non-US Companies

While the proxy voting process is well established in the United States, voting proxies of non-US companies frequently involves logistical issues which can affect BlackRock’s ability to vote such proxies, as well as the desirability of voting such proxies. These issues include (but are not limited to): (i) untimely notice of shareholder meetings; (ii) restrictions on a foreigner’s ability to exercise votes; (iii) requirements to vote proxies in person; (iv) “shareblocking” (requirements that investors who exercise their voting rights surrender the right to dispose of their holdings for some specified period in proximity to the shareholder meeting); (v) potential difficulties in translating the proxy; and (vi) requirements to provide local agents with unrestricted powers of attorney to facilitate voting instructions.

8	The Committee will normally defer to portfolio managers on proxy votes that are akin to investment decisions except for proxy votes that involve a material conflict of interest, in which case it will determine, in its discretion, the appropriate voting process so as to address such conflict.
9	The Committee may delegate the actual maintenance of such records to an outside service provider. Currently, the Committee has delegated the maintenance of such records to Institutional Shareholder Services.

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As a consequence, BlackRock votes proxies of non-US companies only on a “best-efforts” basis. In addition, the Committee may determine that it is generally in the best interests of BlackRock clients not to vote proxies of companies in certain countries if the Committee determines that the costs (including but not limited to opportunity costs associated with shareblocking constraints) associated with exercising a vote generally are expected to outweigh the benefit the client will derive by voting on the issuer’s proposal. If the Committee so determines in the case of a particular country, the Committee (upon advice from BlackRock portfolio managers) may override such determination with respect to a particular issuer’s shareholder meeting if the Committee believes the benefits of seeking to exercise a vote at such meeting outweighs the costs, in which case BlackRock will seek to vote on a best-efforts basis.

D. Securities Sold After Record Date

With respect to votes in connection with securities held on a particular record date but sold from a client account prior to the holding of the related meeting, BlackRock may take no action on proposals to be voted on in such meeting.

E. Conflicts of Interest

From time to time, BlackRock may be required to vote proxies in respect of an issuer that is an affiliate of BlackRock (a “BlackRock Affiliate”), or a money management or other client of BlackRock (a “BlackRock Client”).¹⁰ In such event, provided that the Committee is aware of the real or potential conflict, the following procedures shall apply:

1. The Committee intends to adhere to the voting guidelines set forth herein for all proxy issues including matters involving BlackRock Affiliates and BlackRock Clients. If, however, the matter to be voted on represents a non-routine matter that is material to a BlackRock Affiliate or a BlackRock Client and the Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Committee may, in its discretion for the purposes of ensuring that an independent determination is reached, retain an independent fiduciary to advise the Committee on how to vote or to cast votes on behalf of BlackRock’s clients; and

2. if the Committee determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Committee shall determine how to vote the proxy after consulting with the BlackRock Portfolio Management Group and/or the BlackRock Legal and Compliance Department and concluding that the vote cast is in the client’s best interest notwithstanding the conflict.

III. VOTING GUIDELINES

The Committee has determined that it is appropriate and in the best interests of BlackRock’s clients to adopt the following voting guidelines, which represent the Committee’s usual voting position on certain recurring proxy issues that are not expected to involve unusual circumstances. With respect to any particular proxy issue, however, the Committee may elect to vote differently than a voting guideline if the Committee determines that doing so is, in the Committee’s judgment, in the best interest of its clients. The guidelines may be reviewed at any time upon the request of any Committee member and may be amended or deleted upon the vote of a majority of voting Committee members present at a Committee meeting for which there is a quorum.

A. Boards of Directors

These proposals concern those issues submitted to shareholders relating to the composition of the Board of Directors of companies other than investment companies. As a general matter, the Committee believes that a company’s Board of Directors (rather than shareholders) is most likely to have access to important, nonpublic information regarding a company’s business and prospects, and is therefore best-positioned to set corporate policy and oversee management. The Committee therefore believes that the foundation of good corporate governance is the election of qualified, independent corporate directors who are likely to diligently represent the interests of shareholders and oversee management of the corporation in a manner that will seek to maximize shareholder value over time. In individual cases, the Committee may look at a Director nominee’s history of representing shareholder interests as a director of other companies, or other factors to the extent the Committee deems relevant.

The Committee’s general policy is to vote:

#	VOTE and DESCRIPTION
A.1	FOR nominees for director of United States companies in uncontested elections, except for nominees who
	§     have missed at least two meetings and, as a result, attended less than 75% of meetings of the Board of Directors and its committees the previous year, unless the nominee missed the meeting(s) due to illness or company business
	§     voted to implement or renew a “dead-hand” poison pill
	§     ignored a shareholder proposal that was approved by either a majority of the shares outstanding in any year or by the majority of votes cast for two consecutive years

¹⁰ Such issuers may include investment companies for which BlackRock provides investment advisory, administrative and/or other services.

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#	VOTE and DESCRIPTION
	§     failed to act on takeover offers where the majority of the shareholders have tendered their shares
	§     are corporate insiders who serve on the audit, compensation or nominating committees or on a full Board that does not have such committees composed exclusively of independent directors
	§     on a case-by-case basis, have served as directors of other companies with allegedly poor corporate governance
	§     sit on more than six boards of public companies
A.2	FOR nominees for directors of non-U.S. companies in uncontested elections, except for nominees from whom the Committee determines to withhold votes due to the nominees’ poor records of representing shareholder interests, on a case-by-case basis
A.3	FOR proposals to declassify Boards of Directors, except where there exists a legitimate purpose for classifying boards
A.4	AGAINST proposals to classify Boards of Directors, except where there exists a legitimate purpose for classifying boards
A.5	AGAINST proposals supporting cumulative voting
A.6	FOR proposals eliminating cumulative voting
A.7	FOR proposals supporting confidential voting
A.8	FOR proposals seeking election of supervisory board members
A.9	AGAINST shareholder proposals seeking additional representation of women and/or minorities generally (i.e., not specific individuals) to a Board of Directors
A.10	AGAINST shareholder proposals for term limits for directors
A.11	FOR shareholder proposals to establish a mandatory retirement age for directors who attain the age of 72 or older
A.12	AGAINST shareholder proposals requiring directors to own a minimum amount of company stock
A.13	FOR proposals requiring a majority of independent directors on a Board of Directors
A.14	FOR proposals to allow a Board of Directors to delegate powers to a committee or committees
A.15	FOR proposals to require audit, compensation and/or nominating committees of a Board of Directors to consist exclusively of independent directors
A.16	AGAINST shareholder proposals seeking to prohibit a single person from occupying the roles of chairman and chief executive officer
A.17	FOR proposals to elect account inspectors
A.18	FOR proposals to fix the membership of a Board of Directors at a specified size
A.19	FOR proposals permitting shareholder ability to nominate directors directly
A.20	AGAINST proposals to eliminate shareholder ability to nominate directors directly
A.21	FOR proposals permitting shareholder ability to remove directors directly
A.22	AGAINST proposals to eliminate shareholder ability to remove directors directly
A.23	FOR shareholder proposals requiring the position of chair be filled by an independent director unless there are compelling reasons to recommend against the proposal, such as a counterbalancing governance structure
A.24	FOR precatory and binding resolutions requesting that the board change the company’s by-laws to stipulate that directors need to be elected with an affirmative majority of votes cast, provided it does not conflict with the state law where the company is incorporated. Binding resolutions need to allow for a carve-out for a plurality vote standard when there are more nominees than board seats
A.25	AGAINST shareholder proposals requiring two candidates per board seat
A.26	AGAINST proposals to eliminate entirely directors’ and officers’ liability for monetary damages for violating the duty of care
A.27	AGAINST indemnification proposals that would expand coverage beyond just legal expenses to liability for acts, such as negligence, that are more serious violations of fiduciary obligation than mere carelessness

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#	VOTE and DESCRIPTION
A.28	AGAINST proposals that would expand the scope of indemnification to provide for mandatory indemnification of company officials in connection with acts that previously the company was permitted to provide indemnification for at the discretion of the company’s board (i.e. “permissive indemnification”), but that previously the company was not required to indemnify
A.29	FOR only those proposals providing such expanded coverage in cases when a director’s or officer’s legal defense was unsuccessful if both of the following apply:
	• If the director was found to have acted in good faith and in a manner that he or she reasonably believed was in the best interests of the company; and
	• If only the director’s legal expenses would be covered
A.30	AGAINST proposals that provide that directors may be removed only for cause
A.31	FOR proposals to restore shareholders’ ability to remove directors with or without cause
A.32	AGAINST proposals that provide that only continuing directors may elect replacements to fill board vacancies
A.33	FOR proposals that permit shareholders to elect directors to fill board vacancies, provided that it is understood that investment company directors may fill Board vacancies as permitted by the Investment Company Act of 1940, as amended

B. Auditors

These proposals concern those issues submitted to shareholders related to the selection of auditors. As a general matter, the Committee believes that corporate auditors have a responsibility to represent the interests of shareholders and provide an independent view on the propriety of financial reporting decisions of corporate management. While the Committee will generally defer to a corporation’s choice of auditor, in individual cases, the Committee may look at an auditors’ history of representing shareholder interests as auditor of other companies, to the extent the Committee deems relevant.

The Committee’s general policy is to vote:

B.1	FOR approval of independent auditors, except for
	§     auditors that have a financial interest in, or material association with, the company they are auditing, and are therefore believed by the Committee not to be independent
	§     auditors who have rendered an opinion to any company which in the Committee’s opinion is either not consistent with best accounting practices or not indicative of the company’s financial situation
	§     on a case-by-case basis, auditors who in the Committee’s opinion provide a significant amount of non-audit services to the company
B.2	FOR proposals seeking authorization to fix the remuneration of auditors
B.3	FOR approving internal statutory auditors
B.4	FOR proposals for audit firm rotation, except for proposals that would require rotation after a period of less than 5 years

C. Compensation and Benefits

These proposals concern those issues submitted to shareholders related to management compensation and employee benefits. As a general matter, the Committee favors disclosure of a company’s compensation and benefit policies and opposes excessive compensation, but believes that compensation matters are normally best determined by a corporation’s board of directors, rather than shareholders. Proposals to “micro-manage” a company’s compensation practices or to set arbitrary restrictions on compensation or benefits will therefore generally not be supported.

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The Committee’s general policy is to vote:

C.1	IN ACCORDANCE WITH THE RECOMMENDATION OF ISS on compensation plans if the ISS recommendation is based solely on whether or not the company’s plan satisfies the allowable cap as calculated by ISS. If the recommendation of ISS is based on factors other than whether the plan satisfies the allowable cap the Committee will analyze the particular proposed plan. This policy applies to amendments of plans as well as to initial approvals.
C.2	FOR proposals to eliminate retirement benefits for outside directors
C.3	AGAINST proposals to establish retirement benefits for outside directors
C.4	FOR proposals approving the remuneration of directors or of supervisory board members
C.5	AGAINST proposals to reprice stock options
C.6	FOR proposals to approve employee stock purchase plans that apply to all employees. This policy applies to proposals to amend ESPPs if the plan as amended applies to all employees.
C.7	FOR proposals to pay retirement bonuses to directors of Japanese companies unless the directors have served less than three years
C.8	AGAINST proposals seeking to pay outside directors only in stock
C.9	FOR proposals seeking further disclosure of executive pay or requiring companies to report on their supplemental executive retirement benefits
C.10	AGAINST proposals to ban all future stock or stock option grants to executives
C.11	AGAINST option plans or grants that apply to directors or employees of “related companies” without adequate disclosure of the corporate relationship and justification of the option policy
C.12	FOR proposals to exclude pension plan income in the calculation of earnings used in determining executive bonuses/compensation
C.13	FOR shareholder proposals — based on a case-by-case analysis — that request the Board to establish a pay-for-superior performance standard in the company’s executive compensation plan for senior executives
C.14	AGAINST executive compensation plans in which there is a no connection between the CEO’s pay and company performance (e.g., the plan calls for an increase in pay and when there has been a decrease in company performance
C.15	WITHHOLD votes from the Compensation Committee members when company compensation plan has no connection between executive pay and company performance
C.16	FOR shareholder proposals that call for non-binding shareholder ratification of the compensation of the named Executive Officers and the accompanying narrative disclosure of material factors provided to understand the Summary Compensation Table
C.17	FOR shareholder proposals seeking disclosure regarding the company, Board, or Board committee’s use of compensation consultants, such as company name, business relationship(s) and fees paid
C.18	AGAINST shareholder proposals seeking to set absolute levels on compensation or otherwise dictate the amount or form of compensation
C.19	FOR shareholder proposals to require golden parachutes or executive severance agreements to be submitted for shareholder ratification, unless the proposal requires shareholder approval prior to entering into employment contracts
C.20	FOR shareholder proposals requesting to put extraordinary benefits contained in Supplemental Executive Retirement Plans (“SERP”) agreements to a shareholder vote unless the company’s executive pension plans do not contain excessive benefits beyond what is offered under employee-wide plans

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C.21	FOR shareholder proposals requesting to limit the executive benefits provided under the company’s supplemental executive retirement plan (SERP) by limiting covered compensation to a senior executive’s annual salary and excluding all incentive or bonus pay from the SERP’s definition of covered compensation used to establish such benefits
C.22	AGAINST the equity plan if any of the following factors apply:
	• The total cost of the company’s equity plans is unreasonable;
	• The plan expressly permits the repricing of stock options without prior shareholder approval;
	• There is a disconnect between CEO pay and the company’s performance; and/or
	• The plan is a vehicle for poor compensation practices
C.23	FOR equity plans for non-employee director on a case-by-case basis based on the structure of the plan
C.24	AGAINST plans if the company has a history of repricing options without shareholder approval, and the applicable listing standards would not preclude them from doing so
C.25	FOR shareholder proposals to put option repricings to a shareholder vote

D. Capital Structure

     These proposals relate to various requests, principally from management, for approval of amendments that would alter the capital structure of a company, such as an increase in authorized shares. As a general matter, the Committee will support requests that it believes enhance the rights of common shareholders and oppose requests that appear to be unreasonably dilutive.

The Committee’s general policy is to vote:

D.1	AGAINST proposals seeking authorization to issue shares without preemptive rights except for issuances up to 10% of a non-US company’s total outstanding capital
D.2	FOR management proposals seeking preemptive rights or seeking authorization to issue shares with preemptive rights
D.3	FOR management proposals approving share repurchase programs
D.4	FOR management proposals to split a company’s stock
D.5	FOR management proposals to denominate or authorize denomination of securities or other obligations or assets in Euros
D.6	FOR proposals requiring a company to expense stock options (unless the company has already publicly committed to do so by a certain date)
D.7	AGAINST proposals to create a new class of common stock with superior voting rights
D.8	AGAINST proposals at companies with dual-class capital structures to increase the number of authorized shares of the class of stock that has superior voting rights
D.9	FOR proposals to create a new class of nonvoting or sub-voting common stock if:
	• It is intended for financing purposes with minimal or no dilution to current shareholders; and
	• It is not designed to preserve the voting power of an insider or significant shareholder
D.10	AGAINST proposals authorizing the creation of new classes of preferred stock with unspecified voting, conversion, dividend distribution, and other rights (“blank check” preferred stock)
D.11	FOR proposals to authorize preferred stock in cases where the company specifies the voting, dividend, conversion, and other rights of such stock and the terms of the preferred stock appear reasonable

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D.12	FOR management proposals to implement a reverse stock split when the number of authorized shares will be proportionately reduced
D.13	FOR management proposals to implement a reverse stock split to avoid delisting
D.14	FOR management proposals to increase the common share authorization for a stock split or share dividend
D.15	FOR management proposals to institute open-market share repurchase plans in which all shareholders may participate on equal terms

E. Corporate Charter and By-Laws

     These proposals relate to various requests for approval of amendments to a corporation’s charter or by-laws, principally for the purpose of adopting or redeeming “poison pills”. As a general matter, the Committee will oppose poison pill provisions unless, after consultation with the portfolio managers, it is determined that supporting the poison pill is in the best interest of the client.

The Committee’s general policy is to vote:

E.1	AGAINST proposals seeking to adopt a poison pill
E.2	FOR proposals seeking to redeem a poison pill
E.3	FOR proposals seeking to have poison pills submitted to shareholders for ratification
E.4	FOR management proposals to change the company’s name
E.5	AGAINST proposals to require a supermajority shareholder vote
E.6	FOR proposals to lower supermajority vote requirements
E.7	AGAINST proposals giving the board exclusive authority to amend the bylaws
E.8	FOR proposals giving the board the ability to amend the bylaws in addition to shareholders
E.9	CASEBYCASE on proposals to change a company’s state of incorporation, taking into consideration both financial and corporate governance concerns, including:
	- The reasons for reincorporating
	- A comparison of the governance provisions
	- Comparative economic benefits, and
	- A comparison of the jurisdiction laws
E.10	FOR re-incorporation when the economic factors outweigh any neutral or negative governance changes
E.11	FOR proposals to restore, or provide shareholders with rights of appraisal

F. Corporate Meetings

     These are routine proposals relating to various requests regarding the formalities of corporate meetings.

The Committee’s general policy is to vote:

F.1	AGAINST proposals that seek authority to act on “any other business that may arise”
F.2	FOR proposals designating two shareholders to keep minutes of the meeting
F.3	FOR proposals concerning accepting or approving financial statements and statutory reports
F.4	FOR proposals approving the discharge of management and the supervisory board
F.5	FOR proposals approving the allocation of income and the dividend
F.6	FOR proposals seeking authorization to file required documents/other formalities
F.7	FOR proposals to authorize the corporate board to ratify and execute approved resolutions
F.8	FOR proposals appointing inspectors of elections
F.9	FOR proposals electing a chair of the meeting

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F.10	FOR proposals to permit “virtual” shareholder meetings over the Internet
F.11	AGAINST proposals to require rotating sites for shareholder meetings
F.12	AGAINST proposals that are substantially duplicative (i.e., shareholder proposals that are unnecessary because a management proposal serves the same purpose)

G. Investment Companies

     These proposals relate to proxy issues that are associated solely with holdings of shares of investment companies, including, but not limited to, investment companies for which BlackRock provides investment advisory, administrative and/or other services. As with other types of companies, the Committee believes that a fund’s Board of Directors (rather than its shareholders) is best-positioned to set fund policy and oversee management. However, the Committee opposes granting Boards of Directors authority over certain matters, such as changes to a fund’s investment objective that the Investment Company Act of 1940 envisions will be approved directly by shareholders.

The Committee’s general policy is to vote:

G.1	FOR nominees for director of mutual funds in uncontested elections, except for nominees who
	§     have missed at least two meetings and, as a result, attended less than 75% of meetings of the Board of Directors and its committees the previous year, unless the nominee missed the meeting due to illness or fund business
	§     ignore a shareholder proposal that was approved by either a majority of the shares outstanding in any year or by the majority of votes cast for two consecutive years
	§    are interested directors who serve on the audit or nominating committees or on a full Board that does not have such committees composed exclusively of independent directors
	§     on a case-by-case basis, have served as directors of companies with allegedly poor corporate governance
G.2	FOR the establishment of new series or classes of shares
G.3	AGAINST proposals to change a fund’s investment objective to nonfundamental
G.4	FOR proposals to establish a master-feeder structure or authorizing the Board to approve a master-feeder structure without a further shareholder vote
G.5	AGAINST a shareholder proposal for the establishment of a director ownership requirement
G.6	FOR classified boards of closed-end investment companies
G.6	AGAINST removal of shareholder approval requirement to reorganize or terminate the trust or any of its series

H. Environmental and Social Issues

     These are shareholder proposals to limit corporate conduct in some manner that relates to the shareholder’s environmental or social concerns. The Committee generally believes that annual shareholder meetings are inappropriate forums for the discussion of larger social issues, and opposes shareholder resolutions “micromanaging” corporate conduct or requesting release of information that would not help a shareholder evaluate an investment in the corporation as an economic matter. While the Committee is generally supportive of proposals to require corporate disclosure of matters that seem relevant and material to the economic interests of shareholders, the Committee is generally not supportive of proposals to require disclosure of corporate matters for other purposes.

The Committee’s general policy is to vote:

H.1	AGAINST proposals seeking to have companies adopt international codes of conduct
H.2	AGAINST proposals seeking to have companies provide non-required analyses, information statements or reports in the following areas unless there are compelling investment reasons to request such reports:
	-    environmental liabilities;
	-    bank lending policies;
	-    corporate political contributions or activities;
	-    alcohol and tobacco advertising and efforts to discourage use of such products by minors or other groups;
	-    costs and risk of doing business in any individual country or the standards of operations in such country;
	-    involvement in nuclear defense systems or other military products;
	-    animal welfare standards;
	-    pricing policies;
	-    the use of certain commodities, genetically modified materials or chemicals;
	-    sustainability and other perceived political, environmental or social issues that do not directly relate to the economic operations of the company;
	-    charitable contributions made by the company

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H.3	AGAINST proposals requesting reports on Maquiladora operations or on CERES principles
H.4	AGAINST proposals seeking implementation of the CERES principles
H.5	FOR resolutions requesting that a company disclose information on the impact of climate change on the company’s operations unless:
	-    The company already provides current, publicly available information on the perceived impact that climate change may have on the company as well as associated policies and procedures to address such risks and/or opportunities;
	-    The company’s level of disclosure is comparable to or better than information provided by industry peers; and
	-    There are no significant fines, penalties, or litigation associated with the company’s environmental performance
H.6	AGAINST proposals that call for reduction in greenhouse gas emissions by specified amounts or within a restrictive time frame unless the company lags industry standards and has been the subject of recent, significant fines or litigation resulting from greenhouse gas emissions
H.7	FOR resolutions requesting that companies outline their preparations to comply with standards established by Kyoto Protocol signatory markets unless:
	-    The company does not maintain operations in Kyoto signatory markets;
	-    The company already evaluates and substantially discloses such information;
	-    Greenhouse gas emissions do not significantly impact the company’s core businesses; or
	-    The company is not required to comply with the Kyoto Protocol Standards
H.8	AGAINST resolutions that request the disclosure of detailed information on a company’s policies related to land use or development unless the company has been the subject of recent, significant fines or litigation stemming from its land use
H.9	AGAINST proposals to publish in newspapers and public media the company’s political contributions as such publications could present significant cost to the company without providing commensurate value to shareholders
H.10	AGAINST proposals barring the company from making political contributions. Businesses are affected by legislation at the federal, state, and local level and barring contributions can put the company at a competitive disadvantage
H.11	AGAINST proposals restricting the company from making charitable contributions. Charitable contributions are generally useful for assisting worthwhile causes and for creating goodwill in the community. In the absence of bad faith, self-dealing, or gross negligence, management should determine which contributions are in the best interests of the company
H.12	AGAINST proposals asking for a list of company executives, directors, consultants, legal counsels, lobbyists, or investment bankers that have prior government service and whether such service had a bearing on the business of the company. Such a list would be burdensome to prepare without providing any meaningful information to shareholders
H.13	AGAINST proposals that would call for the adoption of specific committee charter language regarding diversity initiatives unless the company fails to publicly disclose existing equal opportunity or non-discrimination policies
H.14	AGAINST proposals seeking information on the diversity efforts of suppliers and service providers, which can pose a significant cost and administrative burden on the company
H.15	FOR proposals seeking to amend a company’s EEO statement in order to prohibit discrimination based on sexual orientation, unless the change would result in excessive costs for the company
H.16	AGAINST proposals to exclude references to sexual orientation, interests, or activities from a company’s EEO statement
H.17	AGAINST proposals to extend company benefits to, or eliminate benefits from domestic partners. Benefits decisions should be left to the discretion of the company
H.18	AGAINST proposals to take specific actions or adopt policies that require the company to support legislation to:
	-    label or identify products in a certain manner;
	-    study or evaluate the use of certain company products;
	-    increase animal welfare standards to above those required by law; or
	-    engage in political, environmental or social activities that do not directly relate to the economic operations of the company
H.19	CASE-BY-CASE on proposals requesting an economic risk assessment of environmental performance, considering:
	-    The feasibility of financially quantifying environmental risk factors;
	-    The company’s compliance with applicable legislation and/or regulations regarding environmental performance;
	-    The costs associated with implementing improved standards;
	-    The potential costs associated with remediation resulting from

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	poor environmental performance; and
	-     The current level of disclosure on environmental policies and Initiatives
H.20	FOR requests for reports disclosing the company’s environmental policies unless it already has well-documented environmental management systems that are available to the public
H.21	CASE-BY-CASE on proposals calling for companies to report on the risks associated with outsourcing, considering:
	-    Risks associated with certain international markets;
	-    The utility of such a report to shareholders; and
	-    The existence of a publicly available code of corporate conduct that applies to international operations
H.22	CASE-BY-CASE on requests for reports detailing the company’s operations in a particular country and steps to protect human rights, based on:
	-    The nature and amount of company business in that country;
	-     The company’s workplace code of conduct;
	-     Proprietary and confidential information involved;
	-     Company compliance with U.S. regulations on investing in the country; and/or
	-     Level of peer company involvement in the country
H.23	CASE-BY-CASE on proposals to implement certain human rights standards at company facilities or those of its suppliers and to commit to outside, independent monitoring. In evaluating these proposals, the following should be considered:
	-    The company’s current workplace code of conduct or adherence to other global standards and the degree they meet the standards promulgated by the proponent;
	-    Agreements with foreign suppliers to meet certain workplace standards;
	-    Whether company and vendor facilities are monitored and how;
	-    Company participation in fair labor organizations;
	-    Type of business;
	-    Proportion of business conducted overseas;
	-    Countries of operation with known human rights abuses;
	-    Whether the company has been recently involved in significant labor and human rights controversies or violations;
	-    Peer company standards and practices; and
	-     Union presence in company’s international factories

IV. NOTICE TO CLIENTS

     BlackRock will make records of any proxy vote it has made on behalf of a client available to such client upon request.¹¹ BlackRock will use its best efforts to treat proxy votes of clients as confidential, except as it may decide to best serve its clients’ interests or as may be necessary to effect such votes or as may be required by law.

     BlackRock encourages clients with an interest in particular proxy voting issues to make their views known to BlackRock, provided that, in the absence of specific written direction from a client on how to vote that client’s proxies, BlackRock reserves the right to vote any proxy in a manner it deems in the best interests of its clients, as it determines in its sole discretion.

     These policies are as of the date indicated on the cover hereof. The Committee may subsequently amend these policies at any time, without notice.

ClearBridge Advisors, LLC

Proxy Voting Policies and Procedures Summary

     ClearBridge is subject to the Proxy Voting Policies and Procedures that it has adopted to seek to ensure that it votes proxies relating to equity securities in the best interest of client accounts. The following is a brief overview of the policies.

     ClearBridge votes proxies for each client account with respect to which it has been authorized or is required by law to vote proxies. In voting proxies, ClearBridge is guided by general fiduciary principles and seeks to act prudently and solely in the best interest of the beneficial owners of the accounts it manages. ClearBridge attempts to consider all factors that could affect the value of the investment and will vote proxies in the manner that it believes will be consistent with efforts to maximize shareholder values. ClearBridge may utilize an external service provider to provide it with information and/or a recommendation with regard to proxy votes. However, such recommendations do not relieve ClearBridge of its responsibility for the proxy vote.

¹¹ Such request may be made to the client’s portfolio or relationship manager or addressed in writing to Secretary, BlackRock Equity Investment Policy Oversight Committee, Legal and Compliance Department, BlackRock Inc., 40 East 52^nd Street, New York, New York 10022.

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     In the case of a proxy issue for which there is a stated position in the policies, ClearBridge generally votes in accordance with such stated position. In the case of a proxy issue for which there is a list of factors set forth in the policies that ClearBridge considers in voting on such issue, ClearBridge considers those factors and votes on a case-by-case basis in accordance with the general principles set forth above. In the case of a proxy issue for which there is no stated position or list of factors that ClearBridge considers in voting on such issue, ClearBridge votes on a case-by-case basis in accordance with the general principles set forth above. Issues for which there is a stated position set forth in the policies or for which there is a list of factors set forth in the policies that ClearBridge considers in voting on such issues fall into a variety of categories, including election of directors, ratification of auditors, proxy and tender offer defenses, capital structure issues, executive and director compensation, mergers and corporate restructuring, and social and environmental issues. The stated position on an issue set forth in the policies can always be superseded, subject to the duty to act solely in the best interest of the beneficial owners of accounts, by the investment management professionals responsible for the account whose shares are being voted. There may be occasions when different investment teams vote differently on the same issue. An investment team (e.g., ClearBridge SAI investment team) may adopt proxy voting policies that supplement ClearBridge’s Proxy Voting Policies and Procedures. In addition, in the case of Taft-Hartley clients, ClearBridge will comply with a client direction to vote proxies in accordance with Institutional Shareholder Services’ (ISS) PVS Voting guidelines, which ISS represents to be fully consistent with AFL-CIO guidelines.

     In furtherance of ClearBridge’s goal to vote proxies in the best interest of clients, ClearBridge follows procedures designed to identify and address material conflicts that may arise between ClearBridge’s interests and those of its clients before voting proxies on behalf of such clients. To seek to identify conflicts of interest, ClearBridge periodically notifies ClearBridge employees in writing that they are under an obligation (i) to be aware of the potential for conflicts of interest on the part of ClearBridge with respect to voting proxies on behalf of client accounts both as a result of their personal relationships and due to special circumstances that may arise during the conduct of ClearBridge’s business, and (ii) to bring conflicts of interest of which they become aware to the attention of ClearBridge’s compliance personnel. ClearBridge also maintains and considers a list of significant ClearBridge relationships that could present a conflict of interest for ClearBridge in voting proxies. ClearBridge is also sensitive to the fact that a significant, publicized relationship between an issuer and a non-ClearBridge Legg Mason affiliate might appear to the public to influence the manner in which ClearBridge decides to vote a proxy with respect to such issuer.

     Absent special circumstances or a significant, publicized non-ClearBridge Legg Mason affiliate relationship that ClearBridge for prudential reasons treats as a potential conflict of interest because such relationship might appear to the public to influence the manner in which ClearBridge decides to vote a proxy, ClearBridge generally takes the position that non-ClearBridge relationships between a Legg Mason affiliate and an issuer do not present a conflict of interest for ClearBridge in voting proxies with respect to such issuer. Such position is based on the fact that ClearBridge is operated as an independent business unit from other Legg Mason business units as well as on the existence of information barriers between ClearBridge and certain other Legg Mason business units.

     ClearBridge maintains a Proxy Committee to review and address conflicts of interest brought to its attention by ClearBridge compliance personnel. A proxy issue that will be voted in accordance with a stated ClearBridge position on such issue or in accordance with the recommendation of an independent third party is not brought to the attention of the Proxy Committee for a conflict of interest review because ClearBridge’s position is that to the extent a conflict of interest issue exists, it is resolved by voting in accordance with a pre-determined policy or in accordance with the recommendation of an independent third party. With respect to a conflict of interest brought to its attention, the Proxy Committee first determines whether such conflict of interest is material. A conflict of interest is considered material to the extent that it is determined that such conflict is likely to influence, or appear to influence, ClearBridge’s decision-making in voting proxies. If it is determined by the Proxy Committee that a conflict of interest is not material, ClearBridge may vote proxies notwithstanding the existence of the conflict.

     If it is determined by the Proxy Committee that a conflict of interest is material, the Proxy Committee is responsible for determining an appropriate method to resolve such conflict of interest before the proxy affected by the conflict of interest is voted. Such determination is based on the particular facts and circumstances, including the importance of the proxy issue and the nature of the conflict of interest.

     You may request:

     (i) a copy of ClearBridge’s Proxy Voting Policies and Procedures; and/or

     (ii) information concerning how ClearBridge voted proxies with respect to the securities held in your account.

     Such request may be made by sending a written request to:

ClearBridge Advisors, LLC
620 8th Avenue
New York, NY 10018
Attention: Client Services

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Columbia Management Advisors, LLC

Proxy Voting Policy

Applicable Regulations

Rule 206(4)-6 under the Investment Advisers Act of 1940
Form N-PX
ERISA Department of Labor Bulletin 94-2
Institutional Shareholder Services, Inc. (SEC No Action Letter dated September 15, 2004)

Explanation/Summary of Regulatory Requirements

An investment adviser that exercises voting authority over clients’ proxies must adopt written policies and procedures that are reasonably designed to ensure that those proxies are voted in the best economic interests of clients. An adviser’s policies and procedures must address how the adviser resolves material conflicts of interest between its interests and those of its clients. An investment adviser must comply with certain record keeping and disclosure requirements with respect to its proxy voting responsibilities. In addition, an investment adviser to Employee Retirement Income Security Act (“ERISA”) accounts has an affirmative obligation to vote proxies for an ERISA account, unless the client expressly retains proxy voting authority.

Policy Summary

Columbia Management Advisors, LLC (“CMA”) has adopted and implemented the following policy, which it believes is reasonably designed to: (1) ensure that proxies are voted in the best economic interest of clients; and (2) address material conflicts of interest that may arise. This policy applies primarily to the Global Wealth and Investment Management (“GWIM”) Investment Operations Group, as well as to Compliance Risk Management (“CRM”) and Legal. CRM and Business groups to whom this policy applies must adopt written procedures to implement this Policy.

Policy

All proxies regarding client securities for which CMA has authority to vote will, unless CMA determines in accordance with policies stated below to refrain from voting, be voted in a manner considered by CMA to be in the best interest of CMA’s clients without regard to any resulting benefit or detriment to CMA or its affiliates. The best interest of clients is defined for this purpose as the interest of enhancing or protecting the economic value of client accounts, considered as a group rather than individually, as CMA determines in its sole and absolute discretion. In the event a client believes that its other interests require a different vote, CMA will vote as the client clearly instructs, provided CMA receives such instructions in time to act accordingly. Information regarding CMA’s proxy voting decisions is confidential. Therefore, the information may be shared on a need to know basis only, including within CMA and with CMA affiliates. Advisory clients, including mutual funds’ and other funds’ boards, may obtain information on how their proxies were voted by CMA. However, CMA will not selectively disclose its investment company clients’ proxy voting records to third parties. Rather, the investment company clients’ proxy records will be disclosed to shareholders by publicly-available annual filings for 12-month periods ending each year on June 30^th on Form N-PX.

CMA endeavors to vote, in accordance with this Policy, all proxies of which it becomes aware prior to the vote deadline date, subject to certain general exceptions described below.

CMA seeks to avoid the occurrence of actual or apparent material conflicts of interest in the proxy voting process by voting in accordance with predetermined voting guidelines and observing other procedures that are intended to prevent where practicable and manage conflicts of interest (refer to Section III, Conflicts of Interest). CMA’s proxy voting policy and practices are summarized in its Form ADV. Additionally, CMA will provide clients with a copy of its policies, as they may be updated from time to time, upon request.

Means of Achieving Compliance

I. PROXY COMMITTEE

CMA has established a Proxy Committee whose standing members include senior investment management personnel, who participate as voting authorities on the Committee. Additionally, the Proxy Committee regularly involves other associates (i.e., Legal representative, CRM representatives, GWIM Investment Operations representatives, etc.) who participate as needed to enable effective execution of the Committee’s responsibilities.

The Proxy Committee has established a charter, which sets forth the Committee’s purpose, membership and operation. The Proxy Committee’s functions include, in part,

(a) direction of the vote on proposals where there has been a recommendation to the Committee not to vote according to the predetermined Voting Guidelines (stated in Appendix A) or on proposals which require special, individual consideration in accordance with Section IV.C;

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(b) review at least annually of this Proxy Voting Policy and Voting Guidelines to ensure consistency with internal policies, client disclosures and regulatory requirements;

(c) review at least annually of existing Voting Guidelines and the need for development of additional Voting Guidelines to assist in the review of proxy proposals;

(d) ensure that appropriate disclosure of CMA’s Proxy Voting Policy is made to its clients, is disclosed in CMA’s Form ADV and is made to the Funds’ shareholders; and

(e) oversight of any circumstances where, as described in Section III, CMA may determine it is necessary to delegate proxy voting to an independent third party.

II. CMA’S INVESTMENT ASSOCIATES

Under CMA’s Voting Guidelines, certain matters must be determined on a case-by-case basis. In general, the Proxy Group within GWIM Investment Operations will refer these matters first to the relevant CMA research analyst after first confirming with CRM that the proxy matter does not present a conflict to CMA. If there is not a research analyst assigned to the particular security, the matter will be referred to the appropriate portfolio manager.

In considering a particular proxy matter, the research analyst or portfolio manager must vote in the clients’ best interest as defined above. Information regarding CMA’s proxy voting decisions is confidential information. Therefore, research analysts and portfolio managers generally must not discuss proxy votes with any person outside of CMA and within CMA except on a need to know basis only.

Research analysts and portfolio managers must discharge their responsibilities consistent with the obligations set forth below (refer to Management of Conflicts of Interest — Additional Procedures). A research analyst or portfolio manager must disclose in writing any inappropriate attempt to influence their recommendation or any other personal interest that they have with the issuer (see Appendix B — Conflicts of Interest Disclosure and Certification Form). For each Proxy Referral (defined below), the research analyst or portfolio manager is responsible for memorializing their recommendation on the Proxy Voting Recommendation Form (see Appendix C) and communicating their recommendation to the Proxy Group.

Research analysts and portfolio managers should seek advice from CRM or Legal with respect to any questions that they have regarding personal conflicts of interests, communications regarding proxies, or other related matters.

III. CONFLICTS OF INTEREST

For purposes of this policy, a material conflict of interest is a relationship or activity engaged in by CMA, a CMA affiliate¹², or a CMA associate that creates an incentive (or appearance thereof) to favor the interests of CMA, the affiliate, or associate, rather than the clients’ interests. However, a material conflict of interest is not automatically created when there is a relationship or activity engaged in by a CMA affiliate, but there is a possibility that a CMA affiliate could cause a conflict. CMA may have a conflict of interest if either CMA has a significant business relationship with a company that is soliciting a proxy, or if a CMA associate involved in the proxy voting decision-making process has a significant personal or family relationship with the particular company. A conflict of interest is considered to be “material” to the extent that a reasonable person could expect the conflict to influence CMA’s decision on the particular vote at issue. In all cases where there is deemed to be a material conflict of interest, CMA will seek to resolve said conflict in the clients’ best interests.

For those proxy proposals that: (1) are not addressed by CMA’s proxy voting guidelines; (2) the guidelines specify the issue must be evaluated and determined on a case-by-case basis; or (3) a CMA investment associate believes that an exception to the guidelines may be in the best economic interest of CMA’s clients (collectively, “Proxy Referrals”), CMA may vote the proxy, subject to the conflicts of interest procedures set forth below.

In the case of Proxy Referrals, CRM will collect and review any information deemed reasonably appropriate to evaluate if CMA or any person participating in the proxy voting decision-making process has, or has the appearance of, a material conflict of interest. CMA investment personnel involved in the particular Proxy Referral must report any personal conflict of interest circumstances to Columbia Management’s Conflicts of Interest Officer in writing (see Appendix B). CRM will consider information about CMA’s significant business relationships, as well as other relevant information. The information considered by CRM may include information regarding: (1) CMA client and other business relationships; (2) any relevant personal conflicts; and (3) communications between investment professionals and parties outside the CMA investment division regarding the proxy matter. CRM will consult with relevant experts, including legal counsel, as necessary.

¹² Bank of America Corporation (“BAC”), the ultimate corporate parent of CMA, Bank of America, N.A. and all of their numerous affiliates owns, operates and has interests in many lines of business that may create or give rise to the appearance of a conflict of interest between BAC or its affiliates and those of CMA-advised clients. For example, the commercial and investment banking business lines may have interests with respect to issuers of voting securities that could appear to or even actually conflict with CMA’s duty, in the proxy voting process, to act in the best economic interest of its clients.

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If CRM determines that it reasonably believes (1) CMA has a material conflict of interest, or (2) certain individuals should be recused from participating in the proxy vote at issue, CRM will inform the Chair of the Proxy Committee. Where a material conflict of interest is determined to have arisen in the proxy voting process, CMA’s policy is to invoke one or more of the following conflict management procedures:

• Causing the proxies to be voted in accordance with the recommendations of an independent third party (which generally will be CMA’s proxy voting agent);

• Causing the proxies to be delegated to a qualified, independent third party, which may include CMA’s proxy voting agent; or

• In unusual cases, with the Client’s consent and upon ample notice, forwarding the proxies to CMA’s clients so that they may vote the proxies directly.

Affiliate Investment Companies and Public Companies

CMA considers (1) proxies solicited by open-end and closed-end investment companies for which CMA or an affiliate serves as an investment adviser or principal underwriter; and (2) proxies solicited by Bank of America Corporation (“BAC”) or other public companies within the BAC organization to present a material conflict of interest for CMA. Consequently, the proxies of such affiliates will be voted following one of the conflict management practices discussed above.

Management of Conflicts of Interest — Additional Procedures

Additionally, by assuming his or her responsibilities pursuant to this Policy, each member of the Proxy Committee (including the chairperson) and any CMA or BAC associate advising or acting under the supervision or oversight of the Proxy Committee undertakes to disclose in writing to the Columbia Management Conflicts of Interest Officer (within CRM) any actual or apparent personal material conflicts of interest which he or she may have (e.g., relationships with nominees for directorship, members of an issuer’s or dissident’s management or otherwise) in determining whether or how CMA will vote proxies. In the event any member of the Proxy Committee has a conflict of interest regarding a given matter, he or she will abstain from participating in the Committee’s determination of whether and/or how to vote in the matter. CMA’s investment associates also follow the same disclosure requirements for any actual or apparent personal material conflicts of interest as stated in this section.

In certain circumstances, CMA follows the proxy guidelines and uses other research services provided by the proxy vendor or another independent third party. CMA has undertaken a review of the proxy vendor’s conflicts of interest procedures, and will continue to monitor them on an ongoing basis.

CMA and other BAC affiliates have adopted various other policies and procedures that help reinforce this Policy. Please see any associated documents.

Ownership Limits — Delegation of Proxy Voting to an Independent Third Party

From time to time, CMA may face regulatory or compliance limits on the types or amounts of voting securities that it may purchase or hold for client accounts. Among other limits, federal, state, foreign regulatory restrictions, or company-specific ownership limits may restrict the total percentage of an issuer’s voting securities that CMA can hold for clients (collectively, “Ownership Limits”).

The regulations or company-specific documents governing a number of these Ownership Limits often focus upon holdings in voting securities. As a result, in limited circumstances in order to comply with such Ownership Limits and/or internal policies designed to comply with such limits, CMA may delegate proxy voting in certain issuers to a qualified, independent third party, who may be CMA’s proxy voting agent.

IV. PROXY VOTING GUIDELINES

A. CMA’s Proxy Voting Guidelines — General Practices.

The Proxy Committee has adopted the guidelines for voting proxies specified in Appendix A of this policy. CMA uses an independent, third-party proxy vendor to implement its proxy voting process as CMA’s proxy voting agent. In general, whenever a vote is solicited, the proxy vendor will execute the vote according to CMA’s Voting Guidelines.

B. Ability to Vote Proxies Other than as Provided by Voting Guidelines.

A Portfolio Manager or other party involved with a client’s account may conclude that the best interest of the firm’s client, as defined above, requires that a proxy be voted in a manner that differs from the predetermined proxy Voting Guidelines. In this situation, he or she will request that the Proxy Committee consider voting the proxy other than according to such Guidelines. If any person, group, or entity requests the Proxy Committee (or any of its members) vote a proxy other than according to the predetermined Voting Guidelines, that person will furnish to the Proxy Committee a written explanation of the reasons for the request and a description of the person’s, group’s, or entity’s relationship, if any, with the parties proposing and/or opposing the matter’s adoption using the Proxy Vote Recommendation / Proxy Committee Request Form (see Appendix C of this policy). The Proxy Committee may consider the matter, subject to the conflicts of interest procedures discussed above.

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C. Other Proxy Matters

For the following categories, proxies will be voted as stated below:

1. New Proposals. For certain new proposals that are expected to be proposed to shareholders of multiple companies, the Proxy Committee may develop a Voting Guideline which will be incorporated into this Policy.

2. Accounts Adhering to Taft Hartley Principles. All proposals for accounts adhering to Taft Hartley principles will be voted according to the Taft Hartley Guidelines developed by the proxy vendor.

3. Accounts Adhering to Socially Responsible Principles. All proposals for accounts adhering to socially responsible principles will be voted according to the Socially Responsible Guidelines developed by the proxy vendor or as specified by the client.

4. Proxies of International Issuers. In general, CMA will refrain from voting securities in cases where international issuers impose share blocking restrictions. However, in the exceptional circumstances that CMA determines that it would be appropriate to vote such securities, all proposals for these securities will be voted only on the specific instruction of the Proxy Committee and to the extent practicable in accordance with the Voting Guidelines set forth in this Policy. Additionally, proxies will typically not be voted in markets where powers of attorney are required to be executed in order to vote shares.

5. Proxies of Investment Company Shares. Proposals on issues other than those specified in Section V.A will be voted on the specific instruction of the Proxy Committee.

6. Proxy Referrals for Passive Index Accounts. Proxy Referrals for a security that is held only within a passive index account managed by CMA’s Quantitative Strategies Group and not in any other account within CMA, shall be voted according to the guidelines developed by the proxy vendor or as specified by the client. However, if a security is held within a passive index account managed by CMA’s Quantitative Strategies Group and within another CMA-managed account (including without limitation an account actively managed by CMA’s Quantitative Strategies Group), all proposals, including Proxy Referrals, will be voted in accordance with the Voting Guidelines, subject to the other provisions of this Policy.

7. Proxy Voting for Securities on Loan. CMA generally votes in cases where shares have been loaned from actively managed Columbia Funds as long as the shares have been recalled in a timely manner. However, CMA generally does not vote shares that have been loaned from passively managed Columbia Index Funds. Other CMA clients may have their own stock loan programs and may or may not recall their shares for proxy voting.

V. VOTING PROCEDURES

The Proxy Group within GWIM Investment Operations is primarily responsible for overseeing the day-to-day operations of the proxy voting process. The Proxy Group’s monitoring will take into account the following elements: (1) periodic review of the proxy vendor’s votes to ensure that the proxy vendor is accurately voting consistent with CMA’s Voting Guidelines; and (2) review of the fund website to ensure that annual proxy voting reports are posted in a timely and accurate manner. For additional information regarding the proxy voting process, please refer to the GWIM Investment Operations Desktop Procedures.

Supervision

Managers and supervisory personnel are responsible for ensuring that their associates understand and follow this policy and any applicable procedures adopted by the business group to implement the policy. The Proxy Committee has ultimate responsibility for the implementation of this Policy.

Escalation

With the exception of conflicts of interest-related matters, issues arising under this policy should be escalated to the Proxy Committee. Issues involving potential or actual conflicts of interest should be promptly communicated to the Columbia Management Conflicts of Interest Officer.

Monitoring/Oversight

The Compliance Assessment Team within CRM and/or the Corporate Internal Audit Group perform periodic reviews and assessments of various lines of businesses, including a review of Columbia Management’s compliance with the Proxy Voting Policy.

Recordkeeping

CMA will create and maintain records of each investment company’s proxy record for 12-month periods ended June 30^th. CMA will compile the following information for each matter relating to a portfolio security considered at any shareholder meeting during the period covered by the annual report and for which CMA was entitled to vote:

• The name of the issuer of the security;

• The exchange ticker symbol of the portfolio security (if symbol is available through reasonably practicable means);

• The Council on Uniform Securities Identification Procedures number for the portfolio security (if number is available through

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	reasonably practicable means);
•	The shareholder meeting date;
•	A brief identification of the matter voted on;
•	Whether the matter was proposed by the issuer or by a security holder;
•	Whether the company cast its vote on the matter;
•	How the company cast its vote (e.g., for or against proposal, or abstain; for or withhold regarding the election of directors); and
•	Whether the company cast its vote for or against management.

Business groups and support partners are responsible for maintaining all records necessary to evidence compliance with this policy. The records must be properly maintained and readily accessible in order to evidence compliance with this policy.

These records include:

Document	Responsible Party
Proxy Committee Meeting Minutes and Related Materials	Proxy Group in GWIM Investment Operations
Proxy Vote Recommendation Form and Supporting Materials of Investment Management Personnel Concerning Proxy Decisions and Recommendations (or any other document created by CMA taht was material to making a voting decision or that memorializes the basis for the voting decision)	Proxy Group in GWIM Investment Operations
Conflicts of Interest Review Documentation, including Conflicts of Interest Forms	Compliance Risk Management
Client Communications Regarding Proxy Matters	Client Service Group
Copy of Each Applicable Proxy Statement Unless it has been Filed with the SEC and may be Obtained from the SEC’s EDGAR System	Proxy Group in GWIM Investment Operations

Records should be retained for a period of not less than six years plus the current year. Records must be retained in an appropriate office of CM for the first three years.

APPENDIX A — CMA’s Proxy Voting Policy
CMA’S VOTING GUIDELINES

A. The Proxy Committee has adopted the following guidelines for voting proxies:

1. Matters Relating to the Board of Directors/Corporate Governance

CMA generally will vote FOR:

• Proposals for the election of directors or for an increase or decrease in the number of directors, provided that no more than one-third of the Board of Directors would, presently or at any time during the previous three-year period, be from management. However, CMA generally will WITHHOLD votes from pertinent director nominees if:

(i)	the board as proposed to be constituted would have more than one-third of its members from management;
(ii)	the board does not have audit, nominating, and compensation committees composed solely of directors who qualify as being regarded as “independent,” i.e. having no material relationship, directly or indirectly, with the Company, as CMA’s proxy voting agent may determine (subject to the Proxy Committee’s contrary determination of independence or non-independence);
(iii)	the nominee, as a member of the audit committee, permitted the company to incur excessive non-audit fees (as defined below regarding other business matters — ratification of the appointment of auditors);
(iv)	a director serves on more than six public company boards;
(v)	the CEO serves on more than two public company boards other than the company’s board.

	On a CASE-BY-CASE basis, CMA may WITHHOLD votes for a director nominee who has failed to observe good corporate governance practices or, through specific corporate action or inaction (e.g. failing to implement policies for which a majority of shareholders has previously cast votes in favor), has demonstrated a disregard for the interests of shareholders.
•	Proposals requesting that the board audit, compensation and/or nominating committee be composed solely of independent directors. The Audit Committee must satisfy the independence and experience requirements established by the Securities and Exchange Commission (“SEC”) and the New York Stock Exchange, or appropriate local requirements for foreign securities. At least one member of the Audit Committee must qualify as a “financial expert” in accordance with SEC rules.
•	Proposals to declassify a board, absent special circumstances that would indicate that shareholder interests are better served by a classified board structure.

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CMA generally will vote FOR:

• Proposals to create or eliminate positions or titles for senior management. CMA generally prefers that the role of Chairman of the Board and CEO be held by different persons unless there are compelling reasons to vote AGAINST a proposal to separate these positions, such as the existence of a counter-balancing governance structure that includes at least the following elements in addition to applicable listing standards:

o Established governance standards and guidelines.

o Full board composed of not less than two-thirds “independent” directors, as defined by applicable regulatory and listing standards.

o Compensation, as well as audit and nominating (or corporate governance) committees composed entirely of independent directors.

o A designated or rotating presiding independent director appointed by and from the independent directors with the authority and responsibility to call and preside at regularly and, as necessary, specially scheduled meetings of the independent directors to be conducted, unless the participating independent directors otherwise wish, in executive session with no members of management present.

o Disclosed processes for communicating with any individual director, the presiding independent director (or, alternatively, all of the independent directors, as a group) and the entire board of directors, as a group.

o The pertinent class of the Company’s voting securities has out-performed, on a three-year basis, both an appropriate peer group and benchmark index, as indicated in the performance summary table of the Company’s proxy materials. This requirement shall not apply if there has been a change in the Chairman/CEO position within the three-year period.

• Proposals that grant or restore shareholder ability to remove directors with or without cause.

• Proposals to permit shareholders to elect directors to fill board vacancies.

• Proposals that encourage directors to own a minimum amount of company stock.

• Proposals to provide or to restore shareholder appraisal rights.

• Proposals to adopt cumulative voting.

• Proposals for the company to adopt confidential voting.

CMA will generally vote FOR shareholder proposals calling for majority voting thresholds for director elections unless the company has adopted formal corporate governance principles that present a meaningful alternative to the majority voting standard and/or provides an adequate response to both new nominees as well as incumbent nominees who fail to receive a majority of votes cast.

CMA generally will vote AGAINST:

• Proposals to classify boards, absent special circumstances indicating that shareholder interests would be better served by a classified board structure.

• Proposals that give management the ability to alter the size of the board without shareholder approval.

• Proposals that provide directors may be removed only by supermajority vote.

• Proposals to eliminate cumulative voting.

• Proposals which allow more than one vote per share in the election of directors.

• Proposals that provide that only continuing directors may elect replacements to fill board vacancies.

• Proposals that mandate a minimum amount of company stock that directors must own.

• Proposals to limit the tenure of non-management directors.

CMA will vote on a CASE-BY-CASE basis in contested elections of directors.

CMA generally will vote on a CASE-BY-CASE basis on board approved proposals relating to corporate governance. Such proposals include, but are not limited to:

• Reimbursement of proxy solicitation expenses taking into consideration whether or not CMA was in favor of the dissidents.

• Proxy contest advance notice. CMA generally will vote FOR proposals that allow shareholders to submit proposals as close to the meeting date as possible while allowing for sufficient time for Company response, SEC review, and analysis by other shareholders.

• CMA will vote on a CASE-BY-CASE basis to indemnify directors and officers, and AGAINST proposals to indemnify external auditors.

• CMA will vote FOR the indemnification of internal auditors, unless the costs associated with the approval are not disclosed.

2. Compensation

CMA generally will vote FOR management sponsored compensation plans (such as bonus plans, incentive plans, stock option plans, pension and retirement benefits, stock purchase plans or thrift plans) if they are consistent with industry and country standards. However, CMA generally is opposed to compensation plans that substantially dilute ownership interest in a company, provide participants with excessive awards, or have objectionable structural features. Specifically, for equity-based plans, if the proposed number of shares authorized for option programs (excluding authorized shares for expired options) exceeds an average of 5% of the currently outstanding shares over the previous three years or an average of 3% over the previous three years for directors only, the proposal should be referred to the Proxy Committee. The Committee will then consider the circumstances surrounding the issue and vote in the best interest of CMA’s clients. CMA requires that management provide substantial justification for the repricing of options.

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CMA generally will vote FOR:

• Proposals requiring that executive severance arrangements be submitted for shareholder ratification.

• Proposals asking a company to expense stock options.

• Proposals to put option repricings to a shareholder vote.

• Employee stock purchase plans that have the following features: (i) the shares purchased under the plan are acquired for no less than 85% of their market value, (ii) the offering period under the plan is 27 months or less, and (iii) dilution is 10% or less.

• Proposals for the remuneration of auditors if no more than 33% of the compensation costs comes from non audit activity.

CMA generally will vote AGAINST:

• Stock option plans that permit issuance of options with an exercise price below the stock’s current market price, or that permit replacing or repricing of out-of-the money options.

• Proposals to authorize the replacement or repricing of out-of-the money options.

• Proposals requesting that plan administrators have advance authority to amend the terms of a plan without detailed disclosure of the specific amendments. When sufficient details are provided on the amendments permitted by the advance authority, CMA will recommend on such proposals on a CASE-BY-CASE basis

CMA will vote on a CASE-BY-CASE basis proposals regarding approval of specific executive severance arrangements.

3. Capitalization

CMA generally will vote FOR:

•	Proposals to increase the authorized shares for stock dividends, stock splits (and reverse stock splits) or general issuance, unless proposed as an anti-takeover measure or a general issuance proposal increases the authorization by more than 30% without a clear need presented by the company. Proposals for reverse stock splits should include an overall reduction in authorization.
	For companies recognizing preemptive rights for existing shareholders, CMA generally will vote FOR general issuance proposals that increase the authorized shares by more than 30%. CMA will vote on a CASE-BY-CASE basis all such proposals by companies that do not recognize preemptive rights for existing shareholders.
•	Proposals for the elimination of authorized but unissued shares or retirement of those shares purchased for sinking fund or treasury stock.
•	Proposals to institute/renew open market share repurchase plans in which all shareholders may participate on equal terms.
•	Proposals to reduce or change the par value of common stock, provided the number of shares is also changed in order to keep the capital unchanged.

CMA will evaluate on a CASE-BY-CASE basis proposals regarding:

• Management proposals that allow listed companies to de-list and terminate the registration of their common stock. CMA will determine whether the transaction enhances shareholder value by giving consideration to:

o Whether the company has attained benefits from being publicly traded.

o Cash-out value

o Balanced interests of continuing vs. cashed-out shareholders

o Market reaction to public announcement of transaction

4. Mergers, Restructurings and Other Transactions

CMA will review, on a CASE-BY-CASE basis, business transactions such as mergers, acquisitions, reorganizations, liquidations, spinoffs, buyouts and sale of all or substantially all of a company’s assets.

5. Anti-Takeover Measures

CMA generally will vote AGAINST proposals intended largely to avoid acquisition prior to the occurrence of an actual event or to discourage acquisition by creating a cost constraint. With respect to the following measures, CMA generally will vote as follows:

Poison Pills

• CMA votes FOR shareholder proposals that ask a company to submit its poison pill for shareholder ratification.

• CMA generally votes FOR shareholder proposals to eliminate a poison pill.

• CMA generally votes AGAINST management proposals to ratify a poison pill.

Greenmail

• CMA will vote FOR proposals to adopt anti-greenmail charter or bylaw amendments or to otherwise restrict a company’s ability to make greenmail payments.

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Supermajority vote

• CMA will vote AGAINST board-approved proposals to adopt anti-takeover measures such as supermajority voting provisions, issuance of blank check preferred stock, the creation of a separate class of stock with disparate voting rights and charter amendments adopting control share acquisition provisions.

Control Share Acquisition Provisions

• CMA will vote FOR proposals to opt out of control share acquisition statutes.

6. Other Business Matters

CMA generally will vote FOR:

• Bylaw amendments giving holders of at least 25% of outstanding common stock the ability to call a special meeting of stockholders.

• Board governance document amendments or other proposals which give the lead independent director the authority to call special meetings of the independent directors at any time.

CMA generally will vote FOR:

• Proposals to approve routine business matters such as changing the company’s name and procedural matters relating to the shareholder meeting such as approving the minutes of a prior meeting.

• Proposals to ratify the appointment of auditors, unless any of the following apply in which case CMA will generally vote AGAINST the proposal:

o Credible reason exists to question:

§	The auditor’s independence, as determined by applicable regulatory requirements.
§	The accuracy or reliability of the auditor’s opinion as to the company’s financial position.

o Fees paid to the auditor or its affiliates for “non-audit” services were excessive, i.e., in excess of the total fees paid for “audit,” “audit-related” and “tax compliance” and/or “tax return preparation” services, as disclosed in the company’s proxy materials.

• Bylaw or charter changes that are of a housekeeping nature (e.g., updates or corrections).

• Proposals to approve the annual reports and accounts provided the certifications required by the Sarbanes Oxley Act of 2002 have been provided.

CMA generally will vote AGAINST:

• Proposals to eliminate the right of shareholders to act by written consent or call special meetings.

• Proposals providing management with authority to adjourn an annual or special shareholder meeting absent compelling reasons, or to adopt, amend or repeal bylaws without shareholder approval, or to vote unmarked proxies in favor of management.

• Shareholder proposals to change the date, time or location of the company’s annual meeting of shareholders.

CMA will vote AGAINST:

• Authorization to transact other unidentified substantive (as opposed to procedural) business at a meeting.

CMA will vote on a CASE-BY-CASE basis:

• Proposals to change the location of the company’s state of incorporation. CMA considers whether financial benefits (e.g., reduced fees or taxes) likely to accrue to the company as a result of a reincorporation or other change of domicile outweigh any accompanying material diminution of shareholder rights.

• Proposals on whether and how to vote on “bundled” or otherwise conditioned proposals, depending on the overall economic effects upon shareholders.

CMA generally will ABSTAIN from voting on shareholder proposals predominantly involving social, socio-economic, environmental, political or other similar matters on the basis that their impact on share value can rarely be anticipated with any high degree of confidence. CMA may, on a CASE-BY-CASE basis, vote:

• FOR proposals seeking inquiry and reporting with respect to, rather than cessation or affirmative implementation of, specific policies where the pertinent issue warrants separate communication to shareholders; and

• FOR or AGAINST the latter sort of proposal in light of the relative benefits and detriments (e.g. distraction, costs, other burdens) to share value which may be expected to flow from passage of the proposal.

7. Other Matters Relating to Foreign Issues

CMA generally will vote FOR:

• Most stock (scrip) dividend proposals. CMA votes AGAINST proposals that do not allow for a cash option unless management demonstrates that the cash option is harmful to shareholder value.

• Proposals to capitalize the company’s reserves for bonus issues of shares or to increase the par value of shares.

• Proposals to approve control and profit transfer agreements between a parent and its subsidiaries.

• Management proposals seeking the discharge of management and supervisory board members, unless there is concern about the past actions of the company’s auditors/directors and/or legal action is being taken against the board by other shareholders.

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• Management proposals concerning allocation of income and the distribution of dividends, unless the proxy vendor would vote against such proposal in accordance with its guidelines, in which case CMA will evaluate the proposal on a CASE-BY-CASE basis.

• Proposals for the adoption of financing plans if they are in the best economic interests of shareholders.

CMA will generally vote FOR proposals to approve Directors’ Fees, unless the proxy vendor would vote against such proposal in accordance with its guidelines, in which case CMA will evaluate the proposal on a CASE-BY-CASE basis.

CMA will evaluate management proposals to approve protective preference shares for Netherlands located company-friendly foundations proposals on a CASE-BY-CASE basis and will only support resolutions if:

• The supervisory board needs to approve an issuance of shares while the supervisory board is independent within the meaning of CMA’ categorization rules and the Dutch Corporate Governance Code.

• No call/put option agreement exists between the company and the foundation.

• There is a qualifying offer clause or there are annual management and supervisory board elections.

• The issuance authority is for a maximum of 18 months.

• The board of the company-friendly foundation is independent.

• The company has disclosed under what circumstances it expects to make use of the possibility to issue preference shares.

• There are no priority shares or other egregious protective or entrenchment tools.

• The company releases its proxy circular, with details of the poison pill proposal, at least three weeks prior to the meeting.

• Art 2:359c Civil Code of the legislative proposal has been implemented.

8. Investment Company Matters

Election of Directors:

CMA will vote on a CASE-BY-CASE basis proposals for the election of directors, considering the following factors:

• Board structure

• Attendance at board and committee meetings.

CMA will WITHHOLD votes from directors who:

• Attend less than 75 percent of the board and committee meetings without a valid excuse for the absences. Valid reasons include illness or absence due to company business. Participation via telephone is acceptable. In addition, if the director missed only one meeting or one day’s meetings, votes should not be withheld even if such absence dropped the director’s attendance below 75 percent.

• Ignore a shareholder proposal that is approved by a majority of shares outstanding;

• Ignore a shareholder proposal this is approved by a majority of the votes cast for two consecutive years;

• Are interested directors and sit on the audit or nominating committee; or

• Are interested directors and the full board serves as the audit or nominating committee or the company does not have one of these committees.

Proxy Contests:

CMA will vote on a CASE-BY-CASE basis proposals for proxy contests, considering the following factors:

• Past performance relative to its peers

• Market in which fund invests

• Measures taken by the board to address the pertinent issues (e.g., closed-end fund share market value discount to NAV)

• Past shareholder activism, board activity and votes on related proposals

• Strategy of the incumbents versus the dissidents

• Independence of incumbent directors; director nominees

• Experience and skills of director nominees

• Governance profile of the company

• Evidence of management entrenchment

Converting Closed-end Fund to Open-end Fund:

CMA will vote conversion proposals on a CASE-BY-CASE basis, considering the following factors:

• Past performance as a closed-end fund

• Market in which the fund invests

• Measures taken by the board to address the discount

• Past shareholder activism, board activity, and votes on related proposals.

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Investment Advisory Agreements:

CMA will vote investment advisory agreements on a CASE-BY-CASE basis, considering the following factors:

• Proposed and current fee schedules

• Fund category/investment objective

• Performance benchmarks

• Share price performance as compared with peers

• Resulting fees relative to peers

• Assignments (where the adviser undergoes a change of control)

Approving New Classes or Series of Shares:

CMA will vote FOR the establishment of new classes or series of shares.

Preferred Stock Proposals:

CMA will vote on a CASE-BY-CASE basis proposals for the authorization for or increase in the preferred shares, considering the following factors:

• Stated specific financing purpose

• Possible dilution for common shares

• Whether the shares can be used for antitakover purposes

Policies Addressed by the Investment Company Act of 1940 (“1940 Act”):

CMA will vote proposals regarding adoption or changes of policies addressed by the 1940 Act on a CASE-BY-CASE basis, considering the following factors:

• Potential competitiveness

• Regulatory developments

• Current and potential returns

• Current and potential risk

CMA generally will vote FOR these amendments as long as the proposed changes do not fundamentally alter the investment focus of the fund and do comply with current SEC interpretations.

Changing a Fundamental Restriction to a Non-fundamental Restriction:

CMA will vote on a CASE-BY-CASE basis proposals to change a fundamental restriction to a non-fundamental restriction, considering the following factors:

• Fund’s target investments

• Reasons given by the fund for the change

• Projected impact of the change on the portfolio

Change Fundamental Investment Objective to Non-fundamental:

CMA will vote AGAINST proposals to change a fund’s investment objective from fundamental to non-fundamental unless management acknowledges meaningful limitations upon its future requested ability to change the objective

Name Change Proposals:

CMA will vote on a CASE-BY-CASE basis proposals to change a fund’s name, considering the following factors:

• Political/economic changes in the target market

• Consolidation in the target market

• Current asset composition

Change in Fund’s Subclassification:

CMA will vote on a CASE-BY-CASE basis proposals to change a fund’s subclassification, considering the following factors:

• Potential competitiveness

• Current and potential returns

• Risk of concentration

• Consolidation in target industry

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Disposition of Assets/Termination/Liquidation:

CMA will vote on a CASE-BY-CASE basis these proposals, considering the following factors:

• Strategies employed to salvage the company

• Past performance of the fund

• Terms of the liquidation

Changes to the Charter Document:

CMA will vote on a CASE-BY-CASE basis proposals to change the charter document, considering the following factors:

• The degree of change implied by the proposal

• The efficiencies that could result

• The state of incorporation; net effect on shareholder rights

• Regulatory standards and implications

CMA will vote FOR:

• Proposals allowing the Board to impose, without shareholder approval, fees payable upon redemption of fund shares, provided imposition of such fees is likely to benefit long-term fund investors (e.g., by deterring market timing activity by other fund investors)

• Proposals enabling the Board to amend, without shareholder approval, the fund’s management agreement(s) with its investment adviser(s) or sub-advisers, provided the amendment is not required by applicable law (including the Investment Company Act of 1940) or interpretations thereunder to require such approval

CMA will vote AGAINST:

• Proposals enabling the Board to:

o Change, without shareholder approval the domicile of the fund

o Adopt, without shareholder approval, material amendments of the fund’s declaration of trust or other organizational document

Changing the Domicile of a Fund:

CMA will vote on a CASE-BY-CASE basis proposals to reincorporate, considering the following factors:

• Regulations of both states

• Required fundamental policies of both states

• The increased flexibility available

Authorizing the Board to Hire and Terminate Sub-advisors Without Shareholder Approval:

CMA will vote FOR proposals to enable the Board or Investment Adviser to hire and terminate sub-advisers, without shareholder approval, in accordance with applicable rules or exemptive orders under the Investment Company Act of 1940
Distribution Agreements:

CMA will vote these proposals on a CASE-BY-CASE basis, considering the following factors:

• Fees charged to comparably sized funds with similar objectives

• The proposed distributor’s reputation and past performance

• The competitiveness of the fund in the industry

• Terms of the agreement

Master-Feeder Structure:

CMA will vote FOR the establishment of a master-feeder structure.

Mergers:

CMA will vote merger proposals on a CASE-BY-CASE basis, considering the following factors:

• Resulting fee structure

• Performance of both funds

• Continuity of management personnel

• Changes in corporate governance and their impact on shareholder rights

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Shareholder Proposals to Establish Director Ownership Requirement:

CMA will generally vote AGAINST shareholder proposals that mandate a specific minimum amount of stock that directors must own in order to qualify as a director or to remain on the board. While CMA favors stockownership on the part of directors, the company should determine the appropriate ownership requirement.

Shareholder Proposals to Reimburse Shareholder for Expenses Incurred:

CMA will vote on a CASE-BY-CASE basis proposals to reimburse proxy solicitation expenses.
Shareholder Proposals to Terminate the Investment Adviser:

CMA will vote on a CASE-BY-CASE basis proposals to terminate the investment adviser, considering the following factors:

• Performance of the fund’s NAV

• The fund’s history of shareholder relations

• The performance of other funds under the adviser’s management

APPENDIX B

Conflicts of Interest Disclosure and Certification Form

Conflict Review Questionnaire for Proxy Voting Working Group Members and Other Individuals Participating in the Proxy Voting Decision-Making Process.

Instructions: Please complete each of the questions. Please provide an explanation for any affirmative responses. Return the completed questionnaire to Columbia Management Conflicts of Interest Officer.

Issuer and Proxy Matter:

1.	Do you or any member of your immediate family have an existing (or potential) business, financial, personal or other relationship with any management personnel of the issuer13?
2.	Do you or any member of your immediate family have an existing (or potential) business, financial, personal or other relationship with any person participating, supporting, opposing or otherwise connected with the particular proxy proposal (e.g., principals of the issuer; director nominees of issuer company; shareholder activists)?
3.	Have you discussed this particular proxy proposal with anyone outside of Columbia Management’s investment group14?
4.	Are you aware of any other potential personal conflicts of interest not described above? Please detail below.

Name:

Signed:

Date:

13	Personal investing in the issuer by you or a member of your immediate family does not require an affirmative response to this item.
14	Communications with issuer or solicitors in the regular course of business would not have to be disclosed on this form.

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APPENDIX C

CMA Proxy Vote Recommendation/Proxy Committee Request Form

Name of Investment Associate:

Company Name:

Overview of Proxy Vote and Meeting Date:

Proxy Agenda Item(s)

Description of Item:

(The above information will be pre-populated by the Proxy Department.)

Recommendation (FOR , AGAINST, ABSTAIN) including brief rationale:

Please attach any supporting information other than analysis or reports provided by the Proxy Department.

Signed

By signing, I am certifying that I either have no conflicts of interest-related information to report or have sent a completed “Conflicts of Interest Disclosure and Certification Form” to Compliance Risk Management (Conflicts Officer).

Send Completed Forms to:

GWIM Investment Operations – Proxy Department

     or

In the case of Proxy Votes to be referred to the Proxy Committee, submit this form and materials to the Chair of the Proxy Committee

Version as of March 19, 2008

Evergreen Investment Management Company, LLC

Proxy Voting Policy and Procedures
ISS Proxy Voting Guidelines Summary

Statement of Principles

Evergreen Investment Management Company, LLC (EIMCO) recognizes it has a fiduciary duty to vote proxies on behalf of clients who have delegated such responsibility to EIMCO, and that in all cases proxies should be voted in a manner reasonably believed to be in the clients’ best interest.

Proxy Voting Records

A copy of the proxy voting records indicating how the Evergreen funds voted proxies relating to portfolio securities during the twelve-month period ended June 30, 2007 may be obtained, without charge, by visiting our website at EvergreenInvestments.com or the SEC’s website at http://www.sec.gov.

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Corporate Governance Committee

EIMCO has established a corporate governance committee (Committee) which is a sub-committee of EIMCO’s Investment Policy Committee. The Committee is responsible for approving EIMCO’s proxy voting policies and procedures, for overseeing the proxy voting process, and for reviewing proxy voting on a regular basis. The Committee will meet quarterly to review reports of all proxies voted for the prior period and to conduct other business as required.

Conflicts of Interest

EIMCO recognizes that under certain circumstances it may have a conflict of interest in voting proxies on behalf of its clients. Such circumstances may include, but are not limited to, situations where EIMCO or one or more of its affiliates has a client or customer relationship with the issuer of the security that is the subject of the proxy vote.

In most cases, structural and informational barriers within EIMCO and Wachovia Corporation will prevent EIMCO from becoming aware of the relationship giving rise to the potential conflict of interest. In such circumstances, EIMCO will vote the proxy according to its standard guidelines and procedures described above.

If persons involved in proxy voting on behalf of EIMCO becomes aware of a potential conflict of interest, the Committee shall consult with EIMCO’s Legal Department and consider whether to implement special procedures with respect to the voting of that proxy, including whether an independent third party should be retained to vote the proxy.

Share Blocking

EIMCO does not vote global proxies, with share blocking restrictions, requiring shares to be prohibited from sale.

Proxy Voting Guideline Summary

I. The Board of Directors

Voting on Director Nominees in Uncontested Elections

Votes on director nominees should be made on a case-by-case basis, examining the following factors: composition of the board and key board committees, attendance at board meetings, corporate governance provisions and takeover activity, long-term company performance relative to a market index, directors’ investment in the company, whether the chairman is also serving as CEO, and whether a retired CEO sits on the board. However, there are some actions by directors that should result in votes being withheld. These instances include directors who:

• Attend less than 75 percent of the board and committee meetings without a valid excuse

• Implement or renew a dead-hand or modified dead-hand poison pill

• Ignore a shareholder proposal that is approved by a majority of the shares outstanding

• Ignore a shareholder proposal that is approved by a majority of the votes cast for two consecutive years

• Have failed to act on takeover offers where the majority of the shareholders have tendered their shares

• Are inside directors and sit on the audit, compensation, or nominating committees

• Are inside directors and the full board serves as the audit, compensation, or nominating committee or the company does not have one of these committees

In addition, directors who enacted egregious corporate governance policies or failed to replace management as appropriate would be subject to recommendations to withhold votes.

Separating Chairman and CEO

Vote on a case-by-case basis on shareholder proposals requiring that the positions of chairman and CEO be held separately.

Proposals Seeking a Majority of Independent Directors

Shareholder proposals asking that a majority of directors be independent should be evaluated on a case-by-case basis. Vote for shareholder proposals asking that board audit, compensation, and/or nominating committees be composed exclusively of independent directors.

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Stock Ownership Requirements

Vote against shareholder proposals requiring directors to own a minimum amount of company stock in order to qualify as a director or to remain on the board.

Term of Office

Vote against shareholder proposals to limit the tenure of outside directors.

Age Limits

Vote against shareholder proposals to impose a mandatory retirement age for outside directors.

Director and Officer Indemnification and Liability Protection

Proposals on director and officer indemnification and liability protection should be evaluated on a case-by-case basis, using Delaware law as the standard. Vote against proposals to eliminate entirely directors’ and officers’ liability for monetary damages for violating the duty of care. Vote against indemnification proposals that would expand coverage beyond just legal expenses to acts, such as negligence, that are more serious violations of fiduciary obligation than mere carelessness. Vote for only those proposals providing such expanded coverage in cases when a director’s or officer’s legal defense was unsuccessful if: (1) the director was found to have acted in good faith and in a manner that he reasonably believed was in the best interests of the company, and (2) only if the director’s legal expenses would be covered.

Charitable Contributions

Vote against proposals regarding charitable contributions.

II. Proxy Contests

Voting for Director Nominees in Contested Elections

Votes in a contested election of directors must be evaluated on a case-by-case basis, considering the following factors: long-term financial performance of the target company relative to its industry; management’s track record; background to the proxy contest; qualifications of director nominees (both slates); evaluation of what each side is offering shareholders as well as the likelihood that the proposed objectives and goals can be met; and stock ownership positions.

Reimburse Proxy Solicitation Expenses

Voting to reimburse proxy solicitation expenses should be analyzed on a case-by-case basis. In cases where Evergreen recommends in favor of the dissidents, we also recommend voting for reimbursing proxy solicitation expenses.

III. Auditors

Ratifying Auditors

Vote for proposals to ratify auditors, unless: an auditor has a financial interest in or association with the company, and is therefore not independent; or there is reason to believe that the independent registered public accounting firm has rendered an opinion which is neither accurate nor indicative of the company’s financial position.

IV. Proxy Contest Defenses

Board Structure: Staggered vs. Annual Elections

Vote against proposals to classify the board.

Vote for proposals to repeal classified boards and to elect all directors annually.

Shareholder Ability to Remove Directors

Vote against proposals that provide that directors may be removed only for cause.

Vote for proposals to restore shareholder ability to remove directors with or without cause.

Vote against proposals that provide that only continuing directors may elect replacements to fill board vacancies.

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Vote for proposals that permit shareholders to elect directors to fill board vacancies.

Cumulative Voting

Vote against proposals to eliminate cumulative voting.

Vote proposals to restore or permit cumulative voting on a case-by-case basis relative to the company’s other governance provisions.

Shareholder Ability to Call Special Meetings

Vote against proposals to restrict or prohibit shareholder ability to call special meetings.

Vote for proposals that remove restrictions on the right of shareholders to act independently of management.

Shareholder Ability to Act by Written Consent

Vote against proposals to restrict or prohibit shareholder ability to take action by written consent.

Vote for proposals to allow or make easier shareholder action by written consent.

Shareholder Ability to Alter the Size of the Board

Vote for proposals that seek to fix the size of the board.

Vote against proposals that give management the ability to alter the size of the board without shareholder approval.

V. Tender Offer Defenses

Poison Pills

Vote for shareholder proposals that ask a company to submit its poison pill for shareholder ratification.

Review on a case-by-case basis shareholder proposals to redeem a company’s poison pill.

Review on a case-by-case basis management proposals to ratify a poison pill.

Fair Price Provisions

Vote proposals to adopt fair price provisions on a case-by-case basis, evaluating factors such as the vote required to approve the proposed acquisition, the vote required to repeal the fair price provision, and the mechanism for determining the fair price.

Generally, vote against fair price provisions with shareholder vote requirements greater than a majority of disinterested shares.

Greenmail

Vote for proposals to adopt anti-greenmail charter of bylaw amendments or otherwise restrict a company’s ability to make greenmail payments.

Review on a case-by-case basis anti-greenmail proposals when they are bundled with other charter or bylaw amendments.

Pale Greenmail

Review on a case-by-case basis restructuring plans that involve the payment of pale greenmail.

Unequal Voting Rights

Vote against dual-class exchange offers.

Vote against dual-class recapitalizations.

Supermajority Shareholder Vote Requirement to Amend the Charter or Bylaws

Vote against management proposals to require a supermajority shareholder vote to approve charter and bylaw amendments.

Vote for shareholder proposals to lower supermajority shareholder vote requirements for charter and bylaw amendments.

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Supermajority Shareholder Vote Requirement to Approve Mergers

Vote against management proposals to require a supermajority shareholder vote to approve mergers and other significant business combinations.

Vote for shareholder proposals to lower supermajority shareholder vote requirements for mergers and other significant business combinations.

White Squire Placements

Vote for shareholder proposals to require approval of blank check preferred stock Issues for other than general corporate purposes.

VI. Miscellaneous Governance Provisions

Confidential Voting

Vote for shareholder proposals that request companies to adopt confidential voting, use independent tabulators, and use independent inspectors of election as long as the proposals include clauses for proxy contests as follows: In the case of a contested election, management should be permitted to request that the dissident group honor its confidential voting policy. If the dissidents agree, the policy remains in place. If the dissidents do not agree, the confidential voting policy is waived.

Vote for management proposals to adopt confidential voting.

Equal Access

Vote for shareholder proposals that would allow significant company shareholders equal access to management’s proxy material in order to evaluate and propose voting recommendations on proxy proposals and director nominees, and in order to nominate their own candidates to the board.

Bundled Proposals

Review on a case-by-case basis bundled or “conditioned” proxy proposals. In the case of items that are conditioned upon each other, examine the benefits and costs of the packaged items. In instances when the joint effect of the conditioned items is not in shareholders’ best interests, vote against the proposals. If the combined effect is positive, support such proposals.

Shareholder Advisory Committees

Review on a case-by-case basis proposals to establish a shareholder advisory committee.

VII. Capital Structure

Common Stock Authorization

Review proposals to increase the number of shares of common stock authorized for issue on a case-by-case basis.

Vote against proposals to increase the number of authorized shares of the class of stock that has superior voting rights in companies that have dual-class capitalization structures.

Stock Distributions: Splits and Dividends

Vote for management proposals to increase common share authorization for a stock split, provided that the increase in authorized shares would not result in an excessive number of shares available for issuance given a company’s industry and performance in terms of shareholder returns.

Reverse Stock Splits

Vote for management proposals to implement a reverse stock split when the number of shares will be proportionately reduced to avoid delisting.

Review on a case-by-case basis on proposals to implement a reverse stock split that do not proportionately reduce the number of shares authorized for Issue.

Preferred Stock

Vote against proposals authorizing the creation of new classes of preferred stock with unspecified voting, conversion, dividend distribution, and other rights (“blank check” preferred stock).

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Vote for proposals to create blank check preferred stock in cases when the company expressly states that the stock will not be used as a takeover defense.

Vote for proposals to authorize preferred stock in cases where the company specifies the voting, dividend, conversion, and other rights of such stock and the terms of the preferred stock appear reasonable.

Vote case-by-case on proposals to increase the number of blank check preferred shares after analyzing the number of preferred shares available for Issue given a company’s industry and performance in terms of shareholder returns.

Shareholder Proposals Regarding Blank Check Preferred Stock

Vote for shareholder proposals to have blank check preferred stock placements, other than those shares issued for the purpose of raising capital or making acquisitions in the normal course of business, submitted for shareholder ratification.

Adjustments to Par Value of Common Stock

Vote for management proposals to reduce the par value of common stock.

Preemptive Rights

Review on a case-by-case basis shareholder proposals that seek preemptive rights. In evaluating proposals on preemptive rights, consider the size of a company and the characteristics of its shareholder base.

Debt Restructurings

Review on a case-by-case basis proposals to increase common and/or preferred shares and to Issue shares as part of a debt restructuring plan. Consider the following Issues: Dilution—How much will ownership interest of existing shareholders be reduced, and how extreme will dilution to any future earnings be? Change in Control—Will the transaction result in a change in control of the company? Bankruptcy—Generally, approve proposals that facilitate debt restructurings unless there are clear signs of self-dealing or other abuses.

Share Repurchase Programs

Vote for management proposals to institute open-market share repurchase plans in which all shareholders may participate on equal terms.

Tracking Stock

Votes on the creation of tracking stock are determined on a case-by-case basis, weighing the strategic value of the transaction against such factors as:

• adverse governance changes

• excessive increases in authorized capital stock

• unfair method of distribution

• diminution of voting rights

• adverse conversion features

• negative impact on stock option plans

• other alternatives such as spinoff

VIII. Executive and Director Compensation

Votes with respect to compensation plans should be determined on a case-by-case basis.

Our new methodology for reviewing compensation plans primarily focuses on the transfer of shareholder wealth (the dollar cost of pay plans to shareholders instead of simply focusing on voting power dilution). Using the expanded compensation data disclosed under the SEC’s new rules, Evergreen will value every award type. Evergreen will include in its analyses an estimated dollar cost for the proposed plan and all continuing plans. This cost, dilution to shareholders’ equity, will also be expressed as a percentage figure for the transfer of shareholder wealth, and will be considered along with dilution to voting power. Once Evergreen determines the estimated cost of the plan, we compare it to a company-specific dilution cap.

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Our model determines a company-specific allowable pool of shareholder wealth that may be transferred from the company to executives, adjusted for (1) long-term corporate performance (on an absolute basis and relative to a standard industry peer group and an appropriate market index), (2) cash compensation, and (3) categorization of the company as emerging, growth, or mature. These adjustments are pegged to market capitalization. Evergreen will continue to examine other features of proposed pay plans such as administration, payment terms, plan duration, and whether the administering committee is permitted to reprice underwater stock options without shareholder approval.

Management Proposals Seeking Approval to Reprice Options

Vote on management proposals seeking approval to reprice options on a case-by-case basis.

Director Compensation

Votes on stock-based plans for directors are made on a case-by-case basis.

Employee Stock Purchase Plans

Votes on employee stock purchase plans should be made on a case-by-case basis.

OBRA-Related Compensation Proposals:

Amendments that Place a Cap on Annual Grants or Amend Administrative Features

Vote for plans that simply amend shareholder-approved plans to include administrative features or place a cap on the annual grants any one participant may receive to comply with the provisions of Section 162(m) of OBRA.

Amendments to Added Performance-Based Goals

Vote for amendments to add performance goals to existing compensation plans to comply with the provisions of Section 162(m) of OBRA.

Amendments to Increase Shares and Retain Tax Deductions Under OBRA

Votes on amendments to existing plans to increase shares reserved and to qualify the plan for favorable tax treatment under the provisions of Section 162(m) should be evaluated on a case-by-case basis.

Approval of Cash or Cash-and-Stock Bonus Plans

Vote for cash or cash-and-stock bonus plans to exempt the compensation from taxes under the provisions of Section 162(m) of OBRA.

Shareholder Proposals to Limit Executive and Director Pay

Generally, vote for shareholder proposals that seek additional disclosure of executive and director pay information.

Review on a case-by-case basis all other shareholder proposals that seek to limit executive and director pay.

Golden and Tin Parachutes

Vote for shareholder proposals to have golden and tin parachutes submitted for shareholder ratification.

Review on a case-by-case basis all proposals to ratify or cancel golden or tin parachutes.

Employee Stock Ownership Plans (ESOPs)

Vote for proposals that request shareholder approval in order to implement an ESOP or to increase authorized shares for existing ESOPs, except in cases when the number of shares allocated to the ESOP is “excessive” (i.e., generally greater than five percent of outstanding shares).

401(k) Employee Benefit Plans

Vote for proposals to implement a 401(k) savings plan for employees.

IX. State of Incorporation

Voting on State Takeover Statutes

Review on a case-by-case basis proposals to opt in or out of state takeover statutes (including control share acquisition statutes, control share cash-out statutes, freezeout provisions, fair price provisions, stakeholder laws, poison pill endorsements, severance pay and labor contract provisions, anti-greenmail provisions, and disgorgement provisions).

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Voting on Reincorporation Proposals

Proposals to change a company’s state of incorporation should be examined on a case-by-case basis.

X. Mergers and Corporate Restructurings

Mergers and Acquisitions

Votes on mergers and acquisitions should be considered on a case-by-case basis, taking into account at least the following: anticipated financial and operating benefits; offer price (cost vs. premium); prospects of the combined companies; how the deal was negotiated; and changes in corporate governance and their impact on shareholder rights.

Corporate Restructuring

Votes on corporate restructuring proposals, including minority squeezeouts, leveraged buyouts, spinoffs, liquidations, and asset sales should be considered on a case-by-case basis.

Spinoffs

Votes on spinoffs should be considered on a case-by-case basis depending on the tax and regulatory advantages, planned use of sale proceeds, market focus, and managerial incentives.

Asset Sales

Votes on asset sales should be made on a case-by-case basis after considering the impact on the balance sheet/working capital, value received for the asset, and potential elimination of diseconomies.

Liquidations

Votes on liquidations should be made on a case-by-case basis after reviewing management’s efforts to pursue other alternatives, appraisal value of assets, and the compensation plan for executives managing the liquidation.

Appraisal Rights

Vote for proposals to restore, or provide shareholders with, rights of appraisal.

Changing Corporate Name

Vote for changing the corporate name.

XI. Mutual Fund Proxies

Election of Directors

Vote the election of directors on a case-by-case basis, considering the following factors: board structure; director independence and qualifications; and compensation of directors within the fund and the family of funds attendance at board and committee meetings.

Votes should be withheld from directors who:

• attend less than 75 percent of the board and committee meetings without a valid excuse for the absences. Valid reasons include illness or absence due to company business. Participation via telephone is acceptable. In addition, if the director missed only one meeting or one day’s meetings, votes should not be withheld even if such absence dropped the director’s attendance below 75 percent.

• ignore a shareholder proposal that is approved by a majority of shares outstanding

• ignore a shareholder proposal that is approved by a majority of the votes cast for two consecutive years

• are interested directors and sit on the audit or nominating committee

• are interested directors and the full board serves as the audit or nominating committee or the company does not have one of these committees.

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Converting Closed-end Fund to Open-end Fund

Vote conversion proposals on a case-by-case basis, considering the following factors: past performance as a closed-end fund; market in which the fund invests; measures taken by the board to address the discount; and past shareholder activism, board activity, and votes on related proposals.

Proxy Contests

Vote proxy contests on a case-by-case basis, considering the following factors: past performance; market in which fund invests; and measures taken by the board to address the Issues past shareholder activism, board activity, and votes on related proposals.

Investment Advisory Agreements

Vote the investment advisory agreements on a case-by-case basis, considering the following factors: proposed and current fee schedules; fund category/investment objective; performance benchmarks; share price performance as compared with peers; and the magnitude of any fee increase.

Approving New Classes or Series of Shares

Vote for the establishment of new classes or series of shares.

Preferred Stock Proposals

Vote the authorization for or increase in preferred shares on a case-by-case basis, considering the following factors: stated specific financing purpose and other reasons management gives possible dilution for common shares.

1940 Act Policies

Vote these proposals on a case-by-case basis, considering the following factors: potential competitiveness; regulatory developments; current and potential returns; and current and potential risk.

Changing a Fundamental Restriction to a Nonfundamental Restriction

Vote these proposals on a case-by-case basis, considering the following factors: fund’s target investments; reasons given by fund for change; and the projected impact of change on portfolio.

Change Fundamental Investment Objective to Nonfundamental

Vote against proposals to change a fund’s fundamental investment objective to nonfundamental.

Name Rule Proposals

Vote these proposals on a case-by-case basis, considering the following factors: political/economic changes in target market; bundling with quorum requirements; bundling with asset allocation changes; and consolidation in the fund’s target market.

Disposition of Assets/Termination/Liquidation

Vote this proposal on a case-by-case basis, considering the following factors: strategies employed to salvage the company; company’s past performance; and terms of the liquidation.

Changes to the Charter Document

Vote changes to the charter document on a case-by-case basis, considering the following factors: degree of change implied by the proposal; efficiencies that could result; state of incorporation; and regulatory standards and implications.

Changing the Domicile of a Fund

Vote reincorporations on a case-by-case basis, considering the following factors: state regulations of both states; required fundamental policies of both states; and the increased flexibility available.

Change in Fund’s Subclassification

Vote these proposals on a case-by-case basis, considering the following factors: potential competitiveness; current and potential returns; risk of concentration; and consolidation in the target industry.

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Authorizing the Board to Hire and Terminate Sub-advisors Without Shareholder Approval

Vote against these proposals.

Distribution Agreements

Vote these proposals on a case-by-case basis, considering the following factors: fees charged to comparably sized funds with similar objectives; proposed distributor’s reputation and past performance; and competitiveness of fund in industry.

Master-Feeder Structure

Vote for the establishment of a master-feeder structure.

Changes to the Charter Document

Vote changes to the charter document on a case-by-case basis, considering the following factors: degree of change implied by the proposal; efficiencies that could result; state of incorporation; and regulatory standards and implications.

Mergers

Vote merger proposals on a case-by-case basis, considering the following factors: resulting fee structure; performance of both funds; and continuity of management personnel.

Shareholder Proposals

Establish Director Ownership Requirement

Vote against the establishment of a director ownership requirement.

Reimburse Shareholder for Expenses Incurred

Voting to reimburse proxy solicitation expenses should be analyzed on a case-by-case basis. In cases where Evergreen recommends in favor of the dissidents, we also recommend voting for reimbursing proxy solicitation expenses.
Terminate the Investment Advisor

Vote to terminate the investment advisor on a case-by-case basis, considering the following factors: performance of the fund’s NAV and the history of shareholder relations.

XII. Social and Environmental Issues

Energy and Environment

In most cases, Evergreen refrains from providing a vote recommendation on proposals that request companies to file the CERES Principles.

Generally, vote for disclosure reports that seek additional information, particularly when it appears companies have not adequately addressed shareholders’ environmental concerns.

South Africa

In most cases, Evergreen refrains from providing a vote recommendation on proposals pertaining to South Africa.

Generally, vote for disclosure reports that seek additional information such as the amount of business that could be lost by conducting business in South Africa.

Northern Ireland

In most cases, Evergreen refrains from providing a vote recommendation on proposals pertaining to the MacBride Principles.

Generally, vote for disclosure reports that seek additional information about progress being made toward eliminating employment discrimination, particularly when it appears companies have not adequately addressed shareholder concerns.

Military Business

In most cases, Evergreen refrains from providing a vote recommendation on defense Issue proposals.

Generally, vote for disclosure reports that seek additional information on military related operations, particularly when the company has been unresponsive to shareholder requests.

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Maquiladora Standards and International Operations Policies

In most cases, Evergreen refrains from providing a vote recommendation on proposals relating to the Maquiladora Standards and international operating policies.

Generally, vote for disclosure reports on these Issues, particularly when it appears companies have not adequately addressed shareholder concerns.

World Debt Crisis

In most cases, Evergreen refrains from providing a vote recommendation on proposals dealing with third world debt.

Generally, vote for disclosure reports on these Issues, particularly when it appears companies have not adequately addressed shareholder concerns.

Equal Employment Opportunity and Discrimination

In most cases, Evergreen refrains from providing a vote recommendation on proposals regarding equal employment opportunities and discrimination.

Generally, vote for disclosure reports that seek additional information about affirmative action efforts, particularly when it appears companies have been unresponsive to shareholder requests.

Animal Rights

In most cases, Evergreen refrains from providing a vote recommendation on proposals that deal with animal rights.

Product Integrity and Marketing

In most cases, Evergreen refrains from providing a vote recommendation on proposals that ask companies to end their production of legal, but socially questionable, products.

Generally, vote for disclosure reports that seek additional information regarding product integrity and marketing Issues, particularly when it appears companies have been unresponsive to shareholder requests.

Human Resources issues

In most cases, Evergreen refrains from providing a vote recommendation on proposals regarding human resources Issues.

Generally, vote for disclosure reports that seek additional information regarding human resources Issues, particularly when it appears companies have been unresponsive to shareholder requests.

Federated Equity Management Company of Pennsylvania

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

The Board has delegated to the Adviser authority to vote proxies on the securities held in the fund’s portfolio. The Board has also approved the Adviser’s policies and procedures for voting the proxies, which are described below.

Proxy Voting Policies

The Adviser’s general policy is to cast proxy votes in favor of proposals that the Adviser anticipates will enhance the long-term value of the securities being voted. Generally, this will mean voting for proposals that the Adviser believes will: improve the management of a company; increase the rights or preferences of the voted securities; and/or increase the chance that a premium offer would be made for the company or for the voted securities.

The following examples illustrate how these general policies may apply to proposals submitted by a company’s board of directors. However, whether the Adviser supports or opposes a proposal will always depend on the specific circumstances described in the proxy statement and other available information.

On matters of corporate governance, generally the Adviser will vote for the full slate of directors nominated in an uncontested election; and for proposals to: require a company’s audit committee to be comprised entirely of independent directors; require independent tabulation of proxies and/or confidential voting by shareholders; reorganize in another jurisdiction (unless it would reduce the rights or preferences of the securities being voted); ratify the board’s selection of auditors (unless compensation for non-audit services exceeded 50% of the total compensation received from the company, or the previous auditor was dismissed because of a disagreement with the company); and repeal a shareholder rights plan (also known as a “poison pill”). The Adviser will generally vote against the adoption of such a plan (unless the plan is designed to facilitate, rather than prevent, unsolicited offers for the company).

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On matters of capital structure, generally the Adviser will vote: against proposals to authorize or issue shares that are senior in priority or voting rights to the securities being voted; and for proposals to: reduce the amount of shares authorized for issuance; authorize a stock repurchase program; and grant preemptive rights to the securities being voted. The Adviser will generally vote against proposals to eliminate such preemptive rights.

On matters relating to management compensation, generally the Adviser will vote: for stock incentive plans that align the recipients’ interests with the interests of shareholders without creating undue dilution; against proposals that would permit the amendment or replacement of outstanding stock incentives with new stock incentives having more favorable terms; and against executive compensation plans that do not disclose the maximum amounts of compensation that may be awarded or the criteria for determining awards.

On matters relating to corporate transactions, the Adviser will vote proxies relating to proposed mergers, capital reorganizations, and similar transactions in accordance with the general policy, based upon its analysis of the proposed transaction. The Adviser will vote proxies in contested elections of directors in accordance with the general policy, based upon its analysis of the opposing slates and their respective proposed business strategies. Some transactions may also involve proposed changes to the company’s corporate governance, capital structure or management compensation. The Adviser will vote on such changes based on its evaluation of the proposed transaction or contested election. In these circumstances, the Adviser may vote in a manner contrary to the general practice for similar proposals made outside the context of such a proposed transaction or change in the board. For example, if the Adviser decides to vote against a proposed transaction, it may vote for anti-takeover measures reasonably designed to prevent the transaction, even though the Adviser typically votes against such measures in other contexts.

The Adviser generally votes against proposals submitted by shareholders without the favorable recommendation of a company’s board. The Adviser believes that a company’s board should manage its business and policies, and that shareholders who seek specific changes should strive to convince the board of their merits or seek direct representation on the board.
In addition, the Adviser will not vote if it determines that the consequences or costs outweigh the potential benefit of voting. For example, if a foreign market requires shareholders casting proxies to retain the voted shares until the meeting date (thereby rendering the shares “illiquid” for some period of time), the Adviser will not vote proxies for such shares.

Proxy Voting Procedures

The Adviser has established a Proxy Voting Committee (Proxy Committee), to exercise all voting discretion granted to the Adviser by the Board in accordance with the proxy voting policies. The Adviser has hired [ISS] [Institutional Shareholder Services (ISS)] to obtain, vote, and record proxies in accordance with the Proxy Committee’s directions. The Proxy Committee has supplied ISS with general guidelines that represent decisions made by the Proxy Committee in order to vote common proxy proposals; however, the Proxy Committee retains the right to modify these guidelines at any time or to vote contrary to the guidelines at any time in order to cast proxy votes in a manner that the Proxy Committee believes is consistent with the Adviser’s general policy. ISS may vote any proxy as directed in the guidelines without further direction from the Proxy Committee (and may make any determinations required to implement the guidelines. However, if the guidelines require case-by-case direction for a proposal, ISS shall provide the Proxy Committee with all information that it has obtained regarding the proposal and the Proxy Committee will provide specific direction to ISS.

Conflicts of Interest

The Adviser has adopted procedures to address situations where a matter on which a proxy is sought may present a potential conflict between the interests of the fund (and its shareholders) and those of the Adviser or Distributor. This may occur where a significant business relationship exists between the Adviser (or its affiliates) and a company involved with a proxy vote. A company that is a proponent, opponent, or the subject of a proxy vote, and which to the knowledge of the Proxy Committee has this type of significant business relationship, is referred to as an “Interested Company.”

The Adviser has implemented the following procedures in order to avoid concerns that the conflicting interests of the Adviser have influenced proxy votes. Any employee of the Adviser who is contacted by an Interested Company regarding proxies to be voted by the Adviser must refer the Interested Company to a member of the Proxy Committee, and must inform the Interested Company that the Proxy Committee has exclusive authority to determine how the Adviser will vote. Any Proxy Committee member contacted by an Interested Company must report it to the full Proxy Committee and provide a written summary of the communication. Under no circumstances will the Proxy Committee or any member of the Proxy Committee make a commitment to an Interested Company regarding the voting of proxies or disclose to an Interested Company how the Proxy Committee has directed such proxies to be voted. If the Proxy Voting Guidelines already provide specific direction on the proposal in question, the Proxy Committee shall not alter or amend such directions. If the Proxy Voting Guidelines require the Proxy Committee to provide further direction, the Proxy Committee shall do so in accordance with the proxy voting policies, without regard for the interests of the Adviser with respect to the Interested Company. If the Proxy Committee provides any direction as to the voting of proxies relating to a proposal affecting an Interested Company, it must disclose to the fund’s Board information regarding: the significant business relationship; any material communication with the Interested Company; the matter(s) voted on; and how, and why, the Adviser voted as it did.

If the fund holds shares of another investment company for which the Adviser (or an affiliate) acts as an investment adviser, the Proxy Committee will vote the fund’s proxies in the same proportion as the votes cast by shareholders who are not clients of the Adviser at any shareholders’ meeting called by such investment company, unless otherwise directed by the Board.

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ING Clarion Real Estate Securities, L.P.

PROXY VOTING POLICIES AND PROCEDURES

As of January 31, 2008

Proxy voting is an important right of shareholders, and reasonable care and diligence must be undertaken to ensure that such rights are properly and timely exercised. When ING Clarion Real Estate Securities (“ING CRES”) has discretion to vote the proxies of its clients, it will vote those proxies in the best interest of its clients and in accordance with these policies and procedures.

ING CRES has engaged Risk Metrics Group (“RMG”) to provide services with respect to proxy voting, including the tracking of proxies received for clients, providing notice to ING CRES concerning dates votes are due, the actual casting of ballots and recordkeeping. It is important to recognize that the ability for RMG and ING CRES to process proxy voting decisions in a timely manner is contingent in large part on the custodian banks holding securities for ING CRES clients. On a daily basis, ING CRES provides RMG with a list of securities held in each account over which ING CRES has voting authority. In addition, ING CRES provides RMG with its proxy voting guidelines.

Voting decisions remain within the discretion of ING CRES. On a daily basis, ING CRES reviews an online system maintained by RMG in order to monitor for upcoming votes. When a pending vote is identified, the appropriate analyst reviews the ballots, along with supplemental information about the vote provided by RMG and – if available – other research providers employed by ING CRES. The analyst makes the voting decision. If the analyst votes in contravention of the ING CRES proxy voting guidelines, the analyst’s decision must be approved by a senior member of the investment team based on completion of the applicable form containing an explanation documented by the analyst outlining the voting rationale. The Chief Compliance Officer must ensure that the appropriate approval has been received and evidence such review by signature.

Except as otherwise noted, operation of the proxy voting process is coordinated by trade settlement operations. Compliance is responsible for oversight of and testing of the process. As noted above, RMG provides recordkeeping services, including retaining a copy of each proxy statement received and each vote cast. This information is available to ING CRES upon request.

For the accounts over which ING CRES maintains proxy voting authority, ING CRES will vote proxies in accordance with its proxy voting guidelines. ING CRES may, in certain circumstances, voluntarily adhere to guidelines established by its clients if doing so can be accomplished within the proxy voting process through RMG as described above. Otherwise, ING CRES will not accept proxy voting authority to the extent clients wish to impose voting guidelines different from those of ING CRES. As the responsibility for proxy voting is defined at the outset of the client relationship (and documented in the Investment Management Agreement), ING CRES does not anticipate any confusion on the part of its clients in this respect.

ING CRES will identify any conflicts that exist between the interests of ING CRES and its clients. This examination will include a review of the relationship of ING CRES with the companies comprising the firm’s investable universe to determine if the issuer is a client of ING CRES or has some other relationship with the firm. If a material conflict exists, Clarion will determine whether voting in accordance with its voting guidelines is in the best interests of its clients (or particular affected clients). ING CRES will also determine whether it is appropriate to disclose the conflict to the affected clients and, except in the case of clients that are subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA Clients”), will give the clients the opportunity to vote their proxies themselves. In the case of ERISA Clients, if the Investment Management Agreement reserves to the ERISA Client the authority to vote proxies when ING CRES determines it has a material conflict that affects its best judgment as an ERISA fiduciary, ING CRES will give the ERISA Client the opportunity to vote the proxies themselves.

ING CRES will maintain files relating to its proxy voting procedures in an easily accessible place. Records will be maintained and preserved for five years from the end of the fiscal year during which the last entry was made on a record, with records for the first two years kept on site. These files will include (1) copies of the proxy voting policies and procedures and any amendments thereto, (2) a copy of any document Clarion created that was material to making a decision how to vote proxies or that memorializes that decision, and (3) a copy of each written client request for information on how Clarion voted such client’s proxies and a copy of any written response to any (written or oral) client request for information on how ING CRES voted its proxies.

Clients may contact the Chief Compliance Officer, William Zitelli, via e-mail at william.zitelli@ingclarion.com, or telephone (610) 995-8935, to obtain a copy of these policies and procedures (and, if desired, the firm’s proxy voting guidelines) or to request information on the voting of such client’s proxies. A written response will list, with respect to each voted proxy that the client has inquired about, (1) the name of the issuer, (2) the proposal voted upon, and (3) how ING CRES voted the client’s proxy.

Jennison Associates LLC

Proxy Voting Policy Summary

Jennison Associates LLC (“Jennison”) actively manages publicly traded equity securities and fixed income securities. It is the policy of Jennison that where proxy voting authority has been delegated to and accepted by Jennison, all proxies shall be voted by investment professionals in the best interest of the client without regard to the interests of Jennison or other related parties. Secondary consideration may be given to the public and social value of each issue. For purposes of Jennison’s proxy voting policy, the “best interests of clients” shall mean, unless otherwise specified by the client, the clients’ best economic interests over the long term – that is, the common interest that all clients share in seeing the value of a common investment increase over time. It is further the policy of Jennison that complete and accurate disclosure concerning its proxy voting policies and procedures and proxy voting records, as required by the Advisers Act, be made available to clients.

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In voting proxies for international holdings, we will generally apply the same principles as those for U.S. holdings. However, in some countries, voting proxies result in additional restrictions that have an economic impact or cost to the security, such as “share blocking”, where Jennison would be restricted from selling the shares of the security for a period of time if Jennison exercised its ability to vote the proxy. As such, we consider whether the vote, either itself or together with the votes of other shareholders, is expected to have an effect on the value of the investment that will outweigh the cost of voting. Our policy is to not vote these types of proxies when the costs outweigh the benefit of voting, as in share blocking.

Any proxy vote that may represent a potential material conflict of interest is reviewed by Jennison’s Compliance Department.

J. P. Morgan Investment Management Inc.

As an investment adviser, JPMorgan may be granted by its clients the authority to vote the proxies of the securities held in client portfolios. To ensure that the proxies are voted in the best interests of its clients, JPMorgan and its affiliated advisers have adopted detailed proxy voting procedures (“Procedures”) that incorporate detailed proxy guidelines (“Guidelines”) for voting proxies on specific types of issues.

JPMorgan is part of a global asset management organization with the capability to invest in securities of issuers located around the globe. Because the regulatory framework and the business cultures and practices vary from region to region the Guidelines are customized for each region to take into account such variations. Separate Guidelines cover the regions of (1) North America, (2) Europe, (3) Asia (ex-Japan) and (4) Japan, respectively. As a general rule, in routine proxies of a particular security, the guidelines of the region in which the issuer of such security is organized will be applied.

Pursuant to the Procedures, most routine proxy matters will be voted in accordance with the Guidelines, which have been developed with the objective of encouraging corporate action that enhances shareholder value. For proxy matters that are not covered by the Guidelines, matters that require a case-by-case determination or where a vote contrary to the Guidelines is considered appropriate, the Procedures require a certification and review process to be completed before the vote is cast. That process is designed to identify actual or potential material conflicts of interest and ensure that the proxy vote is cast in the best interests of clients.

To oversee and monitor the proxy-voting process, JPMorgan has established a proxy committee and appointed a proxy administrator in each global location where proxies are voted. The primary function of each proxy committee is to review periodically general proxy-voting matters, review and approve the Guidelines annually, and provide advice and recommendations on general proxy-voting matters as well as on specific voting issues implemented by JPMorgan. The procedures permit an independent voting service; currently Institutional Shareholder Services, Inc. in the United States, to perform certain services otherwise carried out or coordinated by the proxy administrator.

A copy of the JPMorgan proxy voting procedures and guidelines are available upon request by contacting your client service representative.

Loomis, Sayles & Company, L.P.

Loomis Sayles uses the services of third parties (“Proxy Voting Service(s)”), to research and administer the vote on proxies for those accounts and funds for which Loomis Sayles has voting authority. Each Proxy Voting Service has a copy of Loomis Sayles’ proxy voting procedures (“Procedures”) and provides vote recommendations and/or analysis to Loomis Sayles based on Loomis Sayles’ Procedures and the Proxy Voting Service’s own research. Loomis Sayles will generally follow its express policy with input from the Proxy Voting Services unless the Proxy Committee determines that the client’s best interests are served by voting otherwise.

All issues presented for shareholder vote will be considered under the oversight of the Proxy Committee. All non-routine issues will be directly considered by the Proxy Committee and, when necessary, the equity analyst following the company and/or the portfolio manager of an account holding the security, and will be voted in the best investment interests of the client. All routine for and against issues will be voted according to Loomis Sayles’ policy approved by the Proxy

Committee unless special factors require that they be considered by the Proxy Committee and, when necessary, the equity analyst following the company and/or the portfolio manager of an account holding the security. Loomis Sayles’ Proxy Committee has established these routine policies in what it believes are the best investment interests of Loomis Sayles’ clients.

The specific responsibilities of the Proxy Committee, include, (1) developing, authorizing, implementing and updating the Procedures, including an annual review of the Procedures, existing voting guidelines and the proxy voting process in general, (2) oversight of the proxy voting process including oversight of the vote on proposals according to the predetermined policies in the voting guidelines, directing the vote on proposals where there is reason not to vote according to the predetermined policies in the voting guidelines or where proposals require special consideration, and consultation with the portfolio managers and analysts for the accounts holding the security when necessary or appropriate and, (3) engagement and oversight of third-party vendors, including Proxy Voting Services.

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Loomis Sayles has established several policies to ensure that proxy votes are voted in its clients’ best interest and are not affected by any possible conflicts of interest. First, except in certain limited instances, Loomis Sayles votes in accordance with its pre-determined policies set forth in the Procedures. Second, where these Procedures allow for discretion, Loomis Sayles will generally consider the recommendations of the Proxy Voting Services in making its voting decisions. However, if the Proxy Committee determines that the Proxy Voting Services’ recommendation is not in the best interest of its clients, then the Proxy Committee may use its discretion to vote against the Proxy Voting Services’ recommendation, but only after taking the following steps: (1) conducting a review for any material conflict of interest Loomis Sayles may have and, (2) if any material conflict is found to exist, excluding anyone at Loomis Sayles who is subject to that conflict of interest from participating in the voting decision in any way. However, if deemed necessary or appropriate by the Proxy Committee after full prior disclosure of any conflict, that person may provide information, opinions or recommendations on any proposal to the Proxy Committee. In such event the Proxy Committee will make reasonable efforts to obtain and consider, prior to directing any vote information, opinions or recommendations from or about the opposing position on any proposal.

Marsico Capital Management LLC

PROXY VOTING POLICY AND PROCEDURES

Statement of Policy

1. It is the policy of Marsico Capital Management, LLC (“MCM”) to seek to vote or otherwise process, such as by a decision to abstain from voting or to take no action on, proxies over which it has voting authority in the best interests of MCM’s clients, as summarized here.

• MCM’s security analysts generally review proxy proposals as part of their monitoring of portfolio companies. Under MCM’s investment discipline, one of the qualities that MCM generally seeks in companies selected for client portfolios is good management teams that generally seek to serve shareholder interests. Because MCM believes that the management teams of most companies it invests in generally seek to serve shareholder interests, MCM believes that voting proxy proposals in clients’ best economic interests usually means voting with the recommendations of these management teams (including their boards of directors).

• In certain circumstances, MCM’s vote-by-vote analysis of proxy proposals could lead it to conclude that particular management or board recommendations may not appear as closely aligned with shareholder interests as MCM may deem desirable, or could be disregarded in the best interests of shareholders. In those and other circumstances, MCM may, in its sole discretion, vote against a management or board recommendation (or abstain or take no action) based on its analysis if such a vote appears consistent with the best interests of clients.

• MCM may process certain proxies without voting them, such as by making a decision to abstain from voting or take no action on such proxies (or on certain proposals within such proxies). Examples include, without limitation, proxies issued by companies that MCM has decided to sell, proxies issued for securities that MCM did not select for a client portfolio (such as, without limitation, securities that were selected by a previous adviser, unsupervised securities held in a client’s account, money market securities, or other securities selected by clients or their representatives other than MCM), or proxies issued by foreign companies that impose burdensome or unreasonable voting, power of attorney, or holding requirements. MCM also may abstain from voting, or take no action on, proxies in other circumstances, such as when voting may not be in the best interests of clients, as an alternative to voting with (or against) management, or when voting may be unduly burdensome or expensive, or if MCM may have a material conflict of interest in voting certain proxies and alternative voting procedures are not desirable.

• In circumstances when there may be an apparent material conflict of interest between MCM’s interests and clients’ interests in how proxies are voted (such as when MCM knows that a proxy issuer is also an MCM client), MCM generally will resolve any appearance concerns by causing those proxies to be “echo voted” or “mirror voted” in the same proportion as other votes, by voting the proxies as recommended by an independent service provider, or by abstaining or taking no action. In other cases, MCM might use other procedures to resolve an apparent material conflict.

• MCM may use an independent service provider to assist in voting proxies, keep voting records, and disclose voting information to clients. MCM’s Proxy Voting policy and reports describing the voting of a client’s proxies are available to the client on request.

• MCM seeks to ensure that, to the extent reasonably feasible, proxies for which MCM receives ballots in good order and receives timely notice will be voted or otherwise processed (such as through a decision to abstain or take no action) as intended under MCM’s Proxy Voting policy and procedures. MCM may be unable to vote or otherwise process proxy ballots that are not received or processed in a timely manner due to functional limitations of the proxy voting system, custodial limitations, or other factors beyond MCM’s control.  Such ballots may include, without limitation, ballots for securities out on loan under securities lending programs initiated by the client or its custodian, ballots not timely forwarded by a custodian, or ballots for which MCM does not timely receive essential information such as the proxy proposal itself or modifications to the required voting date. Other ballots may be voted but not counted, or may be counted in an unexpected way, because of factors such as foreign voting requirements or other limitations.

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Mellon Capital Management Corporation (formerly, Franklin Portfolio Associates, LLC)

The Bank of New York Mellon Corporation — PROXY VOTING POLICY (Approved 10/12/07)

1. Scope of Policy — This Proxy Voting Policy has been adopted by certain of the investment advisory subsidiaries of The Bank of New York Mellon Corporation (“BNY Mellon”), the investment companies advised by such subsidiaries (the “Funds”), and the banking subsidiaries of BNY Mellon (BNY Mellon’s investment advisory and banking subsidiaries are hereinafter referred to individually as a “Subsidiary” and collectively as the “Subsidiaries”).

2. Fiduciary Duty — We recognize that an investment adviser is a fiduciary that owes its clients a duty of utmost good faith and full and fair disclosure of all material facts. We further recognize that the right to vote proxies is an asset, just as the economic investment represented by the shares is an asset. An investment adviser’s duty of loyalty precludes the adviser from subrogating its clients’ interests to its own. Accordingly, in voting proxies, we will seek to act solely in the best financial and economic interests of our clients, including the Funds and their shareholders, and for the exclusive benefit of pension and other employee benefit plan participants. With regard to voting proxies of foreign companies, a Subsidiary weighs the cost of voting, and potential inability to sell, the shares against the benefit of voting the shares to determine whether or not to vote.

3. Long-Term Perspective — We recognize that management of a publicly-held company may need protection from the market’s frequent focus on short-term considerations, so as to be able to concentrate on such long-term goals as productivity and development of competitive products and services.

4. Limited Role of Shareholders — We believe that a shareholder’s role in the governance of a publicly held company is generally limited to monitoring the performance of the company and its managers and voting on matters which properly come to a shareholder vote. We will carefully review proposals that would limit shareholder control or could affect shareholder values.

5. Anti-takeover Proposals — We generally will oppose proposals that seem designed to insulate management unnecessarily from the wishes of a majority of the shareholders and that would lead to a determination of a company’s future by a minority of its shareholders. We will generally support proposals that seem to have as their primary purpose providing management with temporary or short-term insulation from outside influences so as to enable them to bargain effectively with potential suitors and otherwise achieve identified long-term goals to the extent such proposals are discrete and not bundled with other proposals.

6. “Social” Issues — On questions of social responsibility where economic performance does not appear to be an issue, we will attempt to ensure that management reasonably responds to the social issues. Responsiveness will be measured by management’s efforts to address the particular social issue including, where appropriate, assessment of the implications of the proposal to the ongoing operations of the company. We will pay particular attention to repeat issues where management has failed in the intervening period to take actions previously committed to.

With respect to clients having investment policies that require proxies to be cast in a certain manner on particular social responsibility issues, proposals relating to such issues will be evaluated and voted separately by the client’s portfolio manager in accordance with such policies, rather than pursuant to the procedures set forth in section 7.

7. Proxy Voting Process — Every voting proposal is reviewed, categorized and analyzed in accordance with our written guidelines in effect from time to time. Our guidelines are reviewed periodically and updated as necessary to reflect new issues and any changes in our policies on specific issues. Items that can be categorized will be voted in accordance with any applicable guidelines or referred to the BNY Mellon Proxy Policy Committee (the “Committee”), if the applicable guidelines so require. Proposals that cannot be categorized under the guidelines will be referred to the Committee for discussion and vote. Additionally, the Committee may review any proposal where it has identified a particular company, particular industry or particular issue for special scrutiny. The Committee will also consider specific interests and issues raised by a Subsidiary to the Committee, which interests and issues may require that a vote for an account managed by a Subsidiary be cast differently from the collective vote in order to act in the best interests of such account’s beneficial owners.

8. Material Conflicts of Interest — We recognize our duty to vote proxies in the best interests of our clients. We seek to avoid material conflicts of interest through the establishment of our Committee structure, which applies detailed, pre-determined proxy voting guidelines in an objective and consistent manner across client accounts, based on internal and external research and recommendations provided by a third party vendor, and without consideration of any client relationship factors. Further, we engage a third party as an independent fiduciary to vote all proxies for BNY Mellon securities and Fund securities.

9. Securities Lending — We seek to balance the economic benefits of engaging in lending securities against the inability to vote on proxy proposals to determine whether to recall shares, unless a plan fiduciary retains the right to direct us to recall shares.

10. Recordkeeping — We will keep, or cause our agents to keep, the records for each voting proposal required by law.

11. Disclosure — We will furnish a copy of this Proxy Voting Policy and any related procedures, or a description thereof, to investment advisory clients as required by law. In addition, we will furnish a copy of this Proxy Voting Policy, any related procedures, and our voting guidelines to investment advisory clients upon request. The Funds shall include this Proxy Voting Policy and any related procedures, or a description thereof, in their Statements of Additional Information, and shall disclose their proxy votes, as required by

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law. We recognize that the applicable trust or account document, the applicable client agreement, the Employee Retirement Income Security Act of 1974 (ERISA) and certain laws may require disclosure of other information relating to proxy voting in certain circumstances. This information will only be disclosed to those who have an interest in the account for which shares are voted, and after the shareholder meeting has concluded.

MFS Investment Management

PROXY VOTING POLICIES AND PROCEDURES
MASSACHUSETTS FINANCIAL SERVICES COMPANY

January 1, 2009

          Massachusetts Financial Services Company, MFS Institutional Advisors, Inc., MFS International (UK) Limited, MFS Heritage Trust Company, and MFS’ other investment adviser subsidiaries (except Four Pillars Capital, Inc.) (collectively, “MFS”) have adopted proxy voting policies and procedures, as set forth below (“MFS Proxy Voting Policies and Procedures”), with respect to securities owned by the clients for which MFS serves as investment adviser and has the power to vote proxies, including the registered investment companies sponsored by MFS (the “MFS Funds”). References to “clients” in these policies and procedures include the MFS Funds and other clients of MFS, such as funds organized offshore, sub-advised funds and separate account clients, to the extent these clients have delegated to MFS the responsibility to vote proxies on their behalf under the MFS Proxy Voting Policies and Procedures.

The MFS Proxy Voting Policies and Procedures include:

A.	Voting Guidelines;
B.	Administrative Procedures;
C.	Monitoring System;
D.	Records Retention; and
E.	Reports.

A. VOTING GUIDELINES

1. General Policy; Potential Conflicts of Interest

          MFS’ policy is that proxy voting decisions are made in what MFS believes to be the best long-term economic interests of MFS’ clients, and not in the interests of any other party or in MFS’ corporate interests, including interests such as the distribution of MFS Fund shares, and institutional relationships.

          In developing these proxy voting guidelines, MFS periodically reviews corporate governance issues and proxy voting matters that are presented for shareholder vote by either management or shareholders of public companies. Based on the overall principle that all votes cast by MFS on behalf of its clients must be in what MFS believes to be the best long-term economic interests of such clients, MFS has adopted proxy voting guidelines, set forth below, that govern how MFS generally will vote on specific matters presented for shareholder vote. In all cases, MFS will exercise its discretion in voting on these matters in accordance with this overall principle. In other words, the underlying guidelines are simply that – guidelines. Proxy items of significance are often considered on a case-by-case basis, in light of all relevant facts and circumstances, and in certain cases MFS may vote proxies in a manner different from what otherwise would be dictated by these guidelines.

          As a general matter, MFS maintains a consistent voting position on similar proxy proposals with respect to various issuers. In addition, MFS generally votes consistently on the same matter when securities of an issuer are held by multiple client accounts. However, MFS recognizes that there are gradations in certain types of proposals that might result in different voting positions being taken with respect to different proxy statements. There also may be situations involving matters presented for shareholder vote that are not governed by the guidelines or situations where MFS has received explicit voting instructions from a client for its own account. Some items that otherwise would be acceptable will be voted against the proponent when it is seeking extremely broad flexibility without offering a valid explanation. MFS reserves the right to override the guidelines with respect to a particular shareholder vote when such an override is, in MFS’ best judgment, consistent with the overall principle of voting proxies in the best long-term economic interests of MFS’ clients.

          From time to time, MFS may receive comments on the MFS Proxy Voting Policies and Procedures from its clients. These comments are carefully considered by MFS when it reviews these guidelines each year and revises them as appropriate.

          These policies and procedures are intended to address any potential material conflicts of interest on the part of MFS or its subsidiaries that are likely to arise in connection with the voting of proxies on behalf of MFS’ clients. If such potential material conflicts of interest do arise, MFS will analyze, document and report on such potential material conflicts of interest (see Sections B.2 and E below), and shall ultimately vote the relevant proxies in what MFS believes to be the best long-term economic interests of its clients. The MFS Proxy Voting Committee is responsible for monitoring and reporting with respect to such potential material conflicts of interest.

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2.	MFS’ Policy on Specific Issues
	Election of Directors

          MFS believes that good governance should be based on a board with at least a simple majority of directors who are “independent” of management, and whose key committees (e.g., compensation, nominating, and audit committees) are comprised entirely of “independent” directors. While MFS generally supports the board’s nominees in uncontested elections, we will not support a nominee to a board of a U.S. issuer if, as a result of such nominee being elected to the board, the board would be comprised of a majority of members who are not “independent” or, alternatively, the compensation, nominating (including instances in which the full board serves as the nominating committee) or audit committees would include members who are not “independent.”

          MFS will also not support a nominee to a board if we can determine that he or she failed to attend at least 75% of the board and/or relevant committee meetings in the previous year without a valid reason stated in the proxy materials. In addition, MFS will not support all nominees standing for re-election to a board if we can determine: (1) since the last annual meeting of shareholders and without shareholder approval, the board or its compensation committee has re-priced underwater stock options; or (2) since the last annual meeting, the board has either implemented a poison pill without shareholder approval or has not taken responsive action to a majority shareholder approved resolution recommending that the “poison pill” be rescinded. Responsive action would include the rescission of the “poison pill”(without a broad reservation to reinstate the “poison pill” in the event of a hostile tender offer), or assurance in the proxy materials that the terms of the “poison pill” would be put to a binding shareholder vote within the next five to seven years.

          MFS will also not support a nominee (other than a nominee who serves as the issuer’s Chief Executive Officer) standing for re-election if such nominee participated (as a director or committee member) in the approval of senior executive compensation that MFS deems to be “excessive” due to pay for performance issues and/or poor pay practices. In the event that MFS determines that an issuer has adopted “excessive” executive compensation, MFS may also not support the re-election of the issuer’s Chief Executive Officer as director regardless of whether the Chief Executive Officer participated in the approval of the package. MFS will determine whether senior executive compensation is excessive on a case by case basis. Examples of poor pay practices include, but are not limited to, egregious employment contract terms or pension payouts, backdated stock options, overly generous hiring bonuses for chief executive officers, or excessive perks.

          MFS evaluates a contested or contentious election of directors on a case-by-case basis considering the long-term financial performance of the company relative to its industry, management’s track record, the qualifications of the nominees for both slates, if applicable, and an evaluation of what each side is offering shareholders.

          Majority Voting and Director Elections

          MFS votes for reasonably crafted proposals calling for directors to be elected with an affirmative majority of votes cast and/or the elimination of the plurality standard for electing directors (including binding resolutions requesting that the board amend the company’s bylaws), provided the proposal includes a carve-out for a plurality voting standard when there are more director nominees than board seats (e.g., contested elections) (“Majority Vote Proposals”). MFS considers voting against Majority Vote Proposals if the company has adopted, or has proposed to adopt in the proxy statement, formal corporate governance principles that present a meaningful alternative to the majority voting standard and provide an adequate response to both new nominees as well as incumbent nominees who fail to receive a majority of votes cast. MFS believes that a company’s election policy should address the specific circumstances at that company. In determining whether the issuer has a meaningful alternative to the majority voting standard, MFS considers whether a company’s election policy articulates the following elements to address each director nominee who fails to receive an affirmative majority of votes cast in an election:

• Establish guidelines for the process by which the company determines the status of nominees who fail to receive an affirmative majority of votes cast and disclose the guidelines in the annual proxy statement;

• Guidelines should include a reasonable timetable for resolution of the nominee’s status and a requirement that the resolution be disclosed together with the reasons for the resolution;

• Vest management of the process in the company’s independent directors, other than the nominee in question; and

• Outline the range of remedies that the independent directors may consider concerning the nominee.

          Classified Boards

          MFS opposes proposals to classify a board (e.g. a board in which only one-third of board members is elected each year). MFS supports proposals to declassify a board.

          Non-Salary Compensation Programs

          MFS votes against stock option programs for officers, employees or non-employee directors that do not require an investment by the optionee, that give “free rides” on the stock price, or that permit grants of stock options with an exercise price below fair market value on the date the options are granted.

          MFS also opposes stock option programs that allow the board or the compensation committee, without shareholder approval, to reprice underwater options or to automatically replenish shares (i.e. evergreen plans). MFS will consider on a case-by-case basis proposals to exchange existing options for newly issued options (taking into account such factors as whether there is a reasonable value-for-value exchange).

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          MFS opposes stock option programs and restricted stock plans that provide unduly generous compensation for officers, directors or employees, or could result in excessive dilution to other shareholders. As a general guideline, MFS votes against restricted stock plans, stock option, non-employee director, omnibus stock plans and any other stock plan if all such plans for a particular company involve potential dilution, in the aggregate, of more than 15%. However, MFS will also vote against stock plans that involve potential dilution, in aggregate, of more than 10% at U.S. issuers that are listed in the Standard and Poor’s 100 index as of December 31 of the previous year.

          Expensing of Stock Options

          MFS supports shareholder proposals to expense stock options because we believe that the expensing of options presents a more accurate picture of the company’s financial results to investors. We also believe that companies are likely to be more disciplined when granting options if the value of stock options were treated as an expense item on the company’s income statements.

          Executive Compensation

          MFS believes that competitive compensation packages are necessary to attract, motivate and retain executives. Therefore, MFS opposes shareholder proposals that seek to set restrictions on executive compensation. We believe that the election of an issuer’s compensation committee members is the appropriate mechanism to express our view on a company’s compensation practices, as outlined above. MFS also opposes shareholder requests for disclosure on executive compensation beyond regulatory requirements because we believe that current regulatory requirements for disclosure of executive compensation are appropriate and that additional disclosure is often unwarranted and costly. Although we support linking executive stock option grants to a company’s performance, MFS opposes shareholder proposals that mandate a link of performance-based options to a specific industry or peer group stock index. MFS believes that compensation committees should retain the flexibility to propose the appropriate index or other criteria by which performance-based options should be measured.

          MFS will generally support management proposals on its executive compensation practices during the issuer’s prior fiscal year. However, if MFS identifies excessive executive compensation practices during the issuer’s prior fiscal year, then MFS will vote against such proposals.

          MFS generally votes with management on shareholder proposals to include an annual advisory shareholder vote on the company’s executive compensation practices in the issuer’s proxy statement (“Say on Pay”). However, if MFS identifies excessive executive compensation practices at the issuer during the prior fiscal year, then MFS will support such Say on Pay shareholder proposals at those issuers. MFS also supports reasonably crafted shareholder proposals that (i) require the issuer to adopt a policy to recover the portion of performance-based bonuses and awards paid to senior executives that were not earned based upon a significant negative restatement of earnings unless the company already has adopted a clearly satisfactory policy on the matter, or (ii) expressly prohibit any future backdating of stock options.

          Employee Stock Purchase Plans

          MFS supports the use of a broad-based employee stock purchase plans to increase company stock ownership by employees, provided that shares purchased under the plan are acquired for no less than 85% of their market value and do not result in excessive dilution.

          “Golden Parachutes”

          From time to time, shareholders of companies have submitted proxy proposals that would require shareholder approval of severance packages for executive officers that exceed certain predetermined thresholds. MFS votes in favor of such shareholder proposals when they would require shareholder approval of any severance package for an executive officer that exceeds a certain multiple of such officer’s annual compensation that is not determined in MFS’ judgment to be excessive.

          Anti-Takeover Measures

          In general, MFS votes against any measure that inhibits capital appreciation in a stock, including proposals that protect management from action by shareholders. These types of proposals take many forms, ranging from “poison pills” and “shark repellents” to super-majority requirements.

          MFS generally votes for proposals to rescind existing “poison pills” and proposals that would require shareholder approval to adopt prospective “poison pills,” unless the company already has adopted a clearly satisfactory policy on the matter. MFS may consider the adoption of a prospective “poison pill” or the continuation of an existing “poison pill” if we can determine that the following two conditions are met: (1) the “poison pill” allows MFS clients to hold an aggregate position of up to 15% of a company’s total voting securities (and of any class of voting securities); and (2) either (a) the “poison pill” has a term of not longer than five years, provided that MFS will consider voting in favor of the “poison pill” if the term does not exceed seven years and the “poison pill” is linked to a business strategy or purpose that MFS believes is likely to result in greater value for shareholders; or (b) the terms of the “poison pill” allow MFS

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clients the opportunity to accept a fairly structured and attractively priced tender offer (e.g. a “chewable poison pill” that automatically dissolves in the event of an all cash, all shares tender offer at a premium price). MFS will also consider on a case-by-case basis proposals designed to prevent tenders which are disadvantageous to shareholders such as tenders at below market prices and tenders for substantially less than all shares of an issuer.

          Reincorporation and Reorganization Proposals

          When presented with a proposal to reincorporate a company under the laws of a different state, or to effect some other type of corporate reorganization, MFS considers the underlying purpose and ultimate effect of such a proposal in determining whether or not to support such a measure. MFS generally votes with management in regards to these types of proposals, however, if MFS believes the proposal is in the best long-term economic interests of its clients, then MFS may vote against management (e.g. the intent or effect would be to create additional inappropriate impediments to possible acquisitions or takeovers).

          Issuance of Stock

          There are many legitimate reasons for the issuance of stock. Nevertheless, as noted above under “Non-Salary Compensation Programs,” when a stock option plan (either individually or when aggregated with other plans of the same company) would substantially dilute the existing equity (e.g. by approximately 10-15% as described above), MFS generally votes against the plan. In addition, MFS votes against proposals where management is asking for authorization to issue common or preferred stock with no reason stated (a “blank check”) because the unexplained authorization could work as a potential anti-takeover device. MFS may also vote against the authorization or issuance of common or preferred stock if MFS determines that the requested authorization is excessive and not warranted.

          Repurchase Programs

          MFS supports proposals to institute share repurchase plans in which all shareholders have the opportunity to participate on an equal basis. Such plans may include a company acquiring its own shares on the open market, or a company making a tender offer to its own shareholders.

          Confidential Voting

          MFS votes in favor of proposals to ensure that shareholder voting results are kept confidential. For example, MFS supports proposals that would prevent management from having access to shareholder voting information that is compiled by an independent proxy tabulation firm.

          Cumulative Voting

          MFS opposes proposals that seek to introduce cumulative voting and for proposals that seek to eliminate cumulative voting. In either case, MFS will consider whether cumulative voting is likely to enhance the interests of MFS’ clients as minority shareholders. In our view, shareholders should provide names of qualified candidates to a company’s nominating committee, which, in our view, should be comprised solely of “independent” directors.

          Written Consent and Special Meetings

          Because the shareholder right to act by written consent (without calling a formal meeting of shareholders) can be a powerful tool for shareholders, MFS generally opposes proposals that would prevent shareholders from taking action without a formal meeting or would take away a shareholder’s right to call a special meeting of company shareholders pursuant to relevant state law.

          Independent Auditors

          MFS believes that the appointment of auditors for U.S. issuers is best left to the board of directors of the company and therefore supports the ratification of the board’s selection of an auditor for the company. Some shareholder groups have submitted proposals to limit the non-audit activities of a company’s audit firm or prohibit any non-audit services by a company’s auditors to that company. MFS opposes proposals recommending the prohibition or limitation of the performance of non-audit services by an auditor, and proposals recommending the removal of a company’s auditor due to the performance of non-audit work for the company by its auditor. MFS believes that the board, or its audit committee, should have the discretion to hire the company’s auditor for specific pieces of non-audit work in the limited situations permitted under current law.

          Other Environmental, Social and Governance Issues

          There are many groups advocating social change or changes to corporate governance or corporate responsibility standards, and many have chosen the publicly-held corporation as a vehicle for advancing their agenda. Generally, MFS votes with management on such proposals unless MFS can clearly determine that the benefit to shareholders will outweigh any costs or disruptions to the business if the proposal were adopted. Common among the shareholder proposals that MFS generally votes with management are proposals requiring the company to use corporate resources to further a particular social objective outside the business of the company, to refrain from investing or conducting business in certain countries, to adhere to some list of goals or principles (e.g.,

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environmental standards), to permit shareholders access to the company’s proxy statement in connection with the election of directors, to disclose political contributions made by the issuer, to separate the Chairman and Chief Executive Officer positions, or to promulgate special reports on various activities or proposals for which no discernible shareholder economic advantage is evident.

          The laws of various states or countries may regulate how the interests of certain clients subject to those laws (e.g. state pension plans) are voted with respect to social issues. Thus, it may be necessary to cast ballots differently for certain clients than MFS might normally do for other clients.

          Foreign Issuers

          Many of the items on foreign proxies involve repetitive, non-controversial matters that are mandated by local law. Accordingly, the items that are generally deemed routine and which do not require the exercise of judgment under these guidelines (and therefore voted with management) for foreign issuers include, but are not limited to, the following: (i) receiving financial statements or other reports from the board; (ii) approval of declarations of dividends; (iii) appointment of shareholders to sign board meeting minutes; (iv) discharge of management and supervisory boards; and (v) approval of share repurchase programs.

          MFS generally supports the election of a director nominee standing for re-election in uncontested elections unless it can be determined that (1) he or she failed to attend at least 75% of the board and/or relevant committee meetings in the previous year without a valid reason given in the proxy materials; (2) since the last annual meeting of shareholders and without shareholder approval, the board or its compensation committee has re-priced underwater stock options; or (3) since the last annual meeting, the board has either implemented a poison pill without shareholder approval or has not taken responsive action to a majority shareholder approved resolution recommending that the “poison pill” be rescinded. MFS will also not support a director nominee standing for re-election of an issuer that has adopted an excessive compensation package for its senior executives as described above in the section entitled “Voting Guidelines-MFS’ Policy on Specific Issues-Election of Directors.”

          MFS generally supports the election of auditors, but may determine to vote against the election of a statutory auditor in certain markets if MFS reasonably believes that the statutory auditor is not truly independent. MFS will evaluate all other items on proxies for foreign companies in the context of the guidelines described above, but will generally vote against an item if there is not sufficient information disclosed in order to make an informed voting decision.

          In accordance with local law or business practices, many foreign companies prevent the sales of shares that have been voted for a certain period beginning prior to the shareholder meeting and ending on the day following the meeting (“share blocking”). Depending on the country in which a company is domiciled, the blocking period may begin a stated number of days prior or subsequent to the meeting (e.g. one, three or five days) or on a date established by the company. While practices vary, in many countries the block period can be continued for a longer period if the shareholder meeting is adjourned and postponed to a later date. Similarly, practices vary widely as to the ability of a shareholder to have the “block” restriction lifted early (e.g. in some countries shares generally can be “unblocked” up to two days prior to the meeting whereas in other countries the removal of the block appears to be discretionary with the issuer’s transfer agent). Due to these restrictions, MFS must balance the benefits to its clients of voting proxies against the potentially serious portfolio management consequences of a reduced flexibility to sell the underlying shares at the most advantageous time. For companies in countries with share blocking periods, the disadvantage of being unable to sell the stock regardless of changing conditions generally outweighs the advantages of voting at the shareholder meeting for routine items. Accordingly, MFS will not vote those proxies in the absence of an unusual, significant vote that outweighs the disadvantage of being unable to sell the stock.

          In limited circumstances, other market specific impediments to voting shares may limit our ability to cast votes, including, but not limited to, late delivery of proxy materials, power of attorney and share re-registration requirements, or any other unusual voting requirements. In these limited instances, MFS votes securities on a best efforts basis in the context of the guidelines described above.

B. ADMINISTRATIVE PROCEDURES

1. MFS Proxy Voting Committee

          The administration of these MFS Proxy Voting Policies and Procedures is overseen by the MFS Proxy Voting Committee, which includes senior personnel from the MFS Legal and Global Investment Support Departments. The Proxy Voting Committee does not include individuals whose primary duties relate to client relationship management, marketing, or sales. The MFS Proxy Voting Committee:

a.	Reviews these MFS Proxy Voting Policies and Procedures at least annually and recommends any amendments considered to be necessary or advisable;
b.	Determines whether any potential material conflict of interest exist with respect to instances in which MFS (i) seeks to override these MFS Proxy Voting Policies and Procedures; (ii) votes on ballot items not governed by these MFS Proxy Voting Policies and Procedures; (iii) evaluates an excessive executive compensation issue in relation to the election of directors; or (iv) requests a vote recommendation from an MFS portfolio manager or investment analyst (e.g. mergers and acquisitions); and
c.	Considers special proxy issues as they may arise from time to time.

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2. Potential Conflicts of Interest

          The MFS Proxy Voting Committee is responsible for monitoring potential material conflicts of interest on the part of MFS or its subsidiaries that could arise in connection with the voting of proxies on behalf of MFS’ clients. Due to the client focus of our investment management business, we believe that the potential for actual material conflict of interest issues is small. Nonetheless, we have developed precautions to assure that all proxy votes are cast in the best long-term economic interest of shareholders. Other MFS internal policies require all MFS employees to avoid actual and potential conflicts of interests between personal activities and MFS’ client activities. If an employee identifies an actual or potential conflict of interest with respect to any voting decision, then that employee must recuse himself/herself from participating in the voting process. Additionally, with respect to decisions concerning all Non Standard Votes, as defined below, MFS will review the securities holdings reported by the individuals that participate in such decision to determine whether such person has a direct economic interest in the decision, in which case such person shall not further participate in making the decision. Any significant attempt by an employee of MFS or its subsidiaries to influence MFS’ voting on a particular proxy matter should also be reported to the MFS Proxy Voting Committee.

a.	In cases where proxies are voted in accordance with these MFS Proxy Voting Policies and Procedures, no material conflict of interest will be deemed to exist. In cases where (i) MFS is considering overriding these MFS Proxy Voting Policies and Procedures, (ii) matters presented for vote are not clearly governed by these MFS Proxy Voting Policies and Procedures, (iii) MFS evaluates an excessive executive compensation issue in relation to the election of directors, or (iv) a vote recommendation is requested from an MFS portfolio manager or investment analyst (e.g. mergers and acquisitions) (collectively, “Non Standard Votes”); the MFS Proxy Voting Committee will follow these procedures:
b.	Compare the name of the issuer of such proxy against a list of significant current (i) distributors of MFS Fund shares, and (ii) MFS institutional clients (the “MFS Significant Client List”);
c.	If the name of the issuer does not appear on the MFS Significant Client List, then no material conflict of interest will be deemed to exist, and the proxy will be voted as otherwise determined by the MFS Proxy Voting Committee;
d.	If the name of the issuer appears on the MFS Significant Client List, then the MFS Proxy Voting Committee will be apprised of that fact and each member of the MFS Proxy Voting Committee will carefully evaluate the proposed vote in order to ensure that the proxy ultimately is voted in what MFS believes to be the best long-term economic interests of MFS’ clients, and not in MFS’ corporate interests; and
e.	For all potential material conflicts of interest identified under clause (c) above, the MFS Proxy Voting Committee will document: the name of the issuer, the issuer’s relationship to MFS, the analysis of the matters submitted for proxy vote, the votes as to be cast and the reasons why the MFS Proxy Voting Committee determined that the votes were cast in the best long-term economic interests of MFS’ clients, and not in MFS’ corporate interests. A copy of the foregoing documentation will be provided to MFS’ Conflicts Officer.

         The members of the MFS Proxy Voting Committee are responsible for creating and maintaining the MFS Significant Client List, in consultation with MFS’ distribution and institutional business units. The MFS Significant Client List will be reviewed and updated periodically, as appropriate.

         From time to time, certain MFS Funds (the “top tier fund”) may own shares of other MFS Funds (the “underlying fund”). If an underlying fund submits a matter to a shareholder vote, the top tier fund will generally vote its shares in the same proportion as the other shareholders of the underlying fund.

3. Gathering Proxies

          Most U.S. proxies received by MFS and its clients originate at Automatic Data Processing Corp. (“ADP”) although a few proxies are transmitted to investors by corporate issuers through their custodians or depositories. ADP and other service providers, on behalf of issuers, send proxy related material to the record holders of the shares beneficially owned by MFS’ clients, usually to the client’s proxy voting administrator or, less commonly, to the client itself. This material will include proxy ballots reflecting the shareholdings of Funds and of clients on the record dates for such shareholder meetings, as well as proxy statements with the issuer’s explanation of the items to be voted upon.

          MFS, on behalf of itself and the Funds, has entered into an agreement with an independent proxy administration firm, RiskMetrics Group, Inc., Inc. (the “Proxy Administrator”), pursuant to which the Proxy Administrator performs various proxy vote related administrative services, such as vote processing and recordkeeping functions for MFS’ Funds and institutional client accounts. The Proxy Administrator receives proxy statements and proxy ballots directly or indirectly from various custodians, logs these materials into its database and matches upcoming meetings with MFS Fund and client portfolio holdings, which are input into the Proxy Administrator’s system by an MFS holdings datafeed. Through the use of the Proxy Administrator system, ballots and proxy material summaries for all upcoming shareholders’ meetings are available on-line to certain MFS employees and members of the MFS Proxy Voting Committee.

4. Analyzing Proxies

          Proxies are voted in accordance with these MFS Proxy Voting Policies and Procedures. The Proxy Administrator, at the prior direction of MFS, automatically votes all proxy matters that do not require the particular exercise of discretion or judgment with respect to these MFS Proxy Voting Policies and Procedures as determined by the MFS Proxy Voting Committee. With respect to proxy matters that require the particular exercise of discretion or judgment, MFS considers and votes on those proxy matters. MFS also receives

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research from ISS which it may take into account in deciding how to vote. In addition, MFS expects to rely on ISS to identify circumstances in which a board may have approved excessive executive compensation. Representatives of the MFS Proxy Voting Committee review, as appropriate, votes cast to ensure conformity with these MFS Proxy Voting Policies and Procedures.

          As a general matter, portfolio managers and investment analysts have little or no involvement in specific votes taken by MFS. This is designed to promote consistency in the application of MFS’ voting guidelines, to promote consistency in voting on the same or similar issues (for the same or for multiple issuers) across all client accounts, and to minimize the potential that proxy solicitors, issuers, or third parties might attempt to exert inappropriate influence on the vote. In limited types of votes (e.g., corporate actions, such as mergers and acquisitions), a representative of MFS Proxy Voting Committee may consult with or seek recommendations from MFS portfolio managers or investment analysts.¹⁵ However, the MFS Proxy Voting Committee would ultimately determine the manner in which all proxies are voted.

          As noted above, MFS reserves the right to override the guidelines when such an override is, in MFS’ best judgment, consistent with the overall principle of voting proxies in the best long-term economic interests of MFS’ clients. Any such override of the guidelines shall be analyzed, documented and reported in accordance with the procedures set forth in these policies.

5. Voting Proxies

          In accordance with its contract with MFS, the Proxy Administrator also generates a variety of reports for the MFS Proxy Voting Committee, and makes available on-line various other types of information so that the MFS Proxy Voting Committee may review and monitor the votes cast by the Proxy Administrator on behalf of MFS’ clients.

6. Securities Lending

          From time to time, the MFS Funds or other pooled investment vehicles sponsored by MFS may participate in a securities lending program.  In the event MFS or its agent receives timely notice of a shareholder meeting for a U.S. security, MFS and its agent will attempt to recall any securities on loan before the meeting’s record date so that MFS will be entitled to vote these shares.  However, there may be instances in which MFS is unable to timely recall securities on loan for a U.S. security, in which cases MFS will not be able to vote these shares. MFS will report to the appropriate board of the MFS Funds those instances in which MFS is not able to timely recall the loaned securities. MFS generally does not recall non-U.S. securities on loan because there is generally insufficient advance notice of record or vote cut-off dates to allow MFS to timely recall the shares. As a result, non-U.S. securities that are on loan will not generally be voted. If MFS receives timely notice of what MFS determines to be an unusual, significant vote for a non-U.S. security whereas MFS shares are on loan, and determines that voting is in the best long-term economic interest of shareholders, then MFS will attempt to timely recall the loaned shares.

C. MONITORING SYSTEM

          It is the responsibility of the Proxy Administrator and MFS’ Proxy Voting Committee to monitor the proxy voting process. When proxy materials for clients are received by the Proxy Administrator, they are input into the Proxy Administrator’s system. Through an interface with the portfolio holdings database of MFS, the Proxy Administrator matches a list of all MFS Funds and clients who hold shares of a company’s stock and the number of shares held on the record date with the Proxy Administrator’s listing of any upcoming shareholder’s meeting of that company.

          When the Proxy Administrator’s system “tickler” shows that the voting cut-off date of a shareholders’ meeting is approaching, a Proxy Administrator representative checks that the vote for MFS Funds and clients holding that security has been recorded in the computer system. If a proxy ballot has not been received from the client’s custodian, the Proxy Administrator contacts the custodian requesting that the materials be forwarded immediately. If it is not possible to receive the proxy ballot from the custodian in time to be voted at the meeting, then MFS may instruct the custodian to cast the vote in the manner specified and to mail the proxy directly to the issuer.

D. RECORDS RETENTION

          MFS will retain copies of these MFS Proxy Voting Policies and Procedures in effect from time to time and will retain all proxy voting reports submitted to the Board of Trustees and Board of Managers of the MFS Funds for the period required by applicable law. Proxy solicitation materials, including electronic versions of the proxy ballots completed by representatives of the MFS Proxy Voting Committee, together with their respective notes and comments, are maintained in an electronic format by the Proxy Administrator and are accessible on-line by the MFS Proxy Voting Committee. All proxy voting materials and supporting documentation, including records generated by the Proxy Administrator’s system as to proxies processed, including the dates when proxy ballots were received and submitted, and the votes on each company’s proxy issues, are retained as required by applicable law.

¹⁵ From time to time, due to travel schedules and other commitments, an appropriate portfolio manager or research analyst is not available to provide a recommendation on a merger or acquisition proposal. If such a recommendation cannot be obtained prior to the cut-off date of the shareholder meeting, certain members of the MFS Proxy Voting Committee may determine to abstain from voting.

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E.	REPORTS
	MFS Funds

      MFS publicly discloses the proxy voting records of the MFS Funds on an annual basis, as required by law. MFS will also report the results of its voting to the Board of Trustees and Board of Managers of the MFS Funds. These reports will include: (i) a summary of how votes were cast; (ii) a summary of votes against management’s recommendation; (iii) a review of situations where MFS did not vote in accordance with the guidelines and the rationale therefore; (iv) a review of the procedures used by MFS to identify material conflicts of interest and any matters identified as a material conflict of interest; (v) a review of these policies and the guidelines, (vi) a report and impact assessment of instances in which the recall of loaned securities of a U.S. issuer was unsuccessful, and, as necessary or appropriate, any proposed modifications thereto to reflect new developments in corporate governance and other issues. Based on these reviews, the Trustees and Managers of the MFS Funds will consider possible modifications to these policies to the extent necessary or advisable.

      All MFS Advisory Clients

      At any time, a report can be printed by MFS for each client who has requested that MFS furnish a record of votes cast. The report specifies the proxy issues which have been voted for the client during the year and the position taken with respect to each issue and, upon request, may identify situations where MFS did not vote in accordance with the MFS Proxy Voting Policies and Procedures. Except as described above, MFS generally will not divulge actual voting practices to any party other than the client or its representatives (unless required by applicable law) because we consider that information to be confidential and proprietary to the client.

Morgan Stanley Investment Management Inc.

FEBRUARY 28, 2008

MORGAN STANLEY INVESTMENT MANAGEMENT PROXY VOTING POLICY AND PROCEDURES

I. POLICY STATEMENT

Introduction - Morgan Stanley Investment Management’s (“MSIM”) policy and procedures for voting proxies (“Policy”) with respect to securities held in the accounts of clients applies to those MSIM entities that provide discretionary investment management services and for which an MSIM entity has authority to vote proxies. This Policy is reviewed and updated as necessary to address new and evolving proxy voting issues and standards.

The MSIM entities covered by this Policy currently include the following: Morgan Stanley Investment Advisors Inc., Morgan Stanley AIP GP LP, Morgan Stanley Investment Management Inc., Morgan Stanley Investment Management Limited, Morgan Stanley Investment Management Company, Morgan Stanley Asset & Investment Trust Management Co., Limited, Morgan Stanley Investment Management Private Limited, Van Kampen Asset Management, and Van Kampen Advisors Inc. (each an “MSIM Affiliate” and collectively referred to as the “MSIM Affiliates” or as “we” below).

Each MSIM Affiliate will use its best efforts to vote proxies as part of its authority to manage, acquire and dispose of account assets. With respect to the MSIM registered management investment companies (Van Kampen, Institutional and Advisor Funds—collectively referred to herein as the “MSIM Funds”), each MSIM Affiliate will vote proxies under this Policy pursuant to authority granted under its applicable investment advisory agreement or, in the absence of such authority, as authorized by the Board of Directors/Trustees of the MSIM Funds. An MSIM Affiliate will not vote proxies if the “named fiduciary” for an ERISA account has reserved the authority for itself, or in the case of an account not governed by ERISA, the investment management or investment advisory agreement does not authorize the MSIM Affiliate to vote proxies. MSIM Affiliates will vote proxies in a prudent and diligent manner and in the best interests of clients, including beneficiaries of and participants in a client’s benefit plan(s) for which the MSIM Affiliates manage assets, consistent with the objective of maximizing long-term investment returns (“Client Proxy Standard”). In certain situations, a client or its fiduciary may provide an MSIM Affiliate with a proxy voting policy. In these situations, the MSIM Affiliate will comply with the client’s policy.

Proxy Research Services - RiskMetrics Group ISS Governance Services (“ISS”) and Glass Lewis (together with other proxy research providers as we may retain from time to time, the “Research Providers”) are independent advisers that specialize in providing a variety of fiduciary-level proxy-related services to institutional investment managers, plan sponsors, custodians, consultants, and other institutional investors. The services provided include in-depth research, global issuer analysis, and voting recommendations. While we may review and utilize the recommendations of the Research Providers in making proxy voting decisions, we are in no way obligated to follow such recommendations. In addition to research, ISS provides vote execution, reporting, and recordkeeping.

Voting Proxies for Certain Non-U.S. Companies - Voting proxies of companies located in some jurisdictions, particularly emerging markets, may involve several problems that can restrict or prevent the ability to vote such proxies or entail significant costs. These problems include, but are not limited to: (i) proxy statements and ballots being written in a language other than English; (ii) untimely and/or inadequate notice of shareholder meetings; (iii) restrictions on the ability of holders outside the issuer’s jurisdiction of organization to exercise votes; (iv) requirements to vote proxies in person; (v) the imposition of restrictions on the sale of the securities for a period of time in proximity to the shareholder meeting; and (vi) requirements to provide local agents with power of attorney to facilitate our voting instructions. As a result, we vote clients’ non-U.S. proxies on a best efforts basis only, after weighing the costs and benefits of voting such proxies, consistent with the Client Proxy Standard. ISS has been retained to provide assistance in connection with voting non-U.S. proxies.

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II. GENERAL PROXY VOTING GUIDELINES

To promote consistency in voting proxies on behalf of its clients, we follow this Policy (subject to any exception set forth herein), including the guidelines set forth below. These guidelines address a broad range of issues, and provide general voting parameters on proposals that arise most frequently. However, details of specific proposals vary, and those details affect particular voting decisions, as do factors specific to a given company. Pursuant to the procedures set forth herein, we may vote in a manner that is not in accordance with the following general guidelines, provided the vote is approved by the Proxy Review Committee (see Section III for description) and is consistent with the Client Proxy Standard. Morgan Stanley AIP GP LP will follow the procedures as described in Appendix A.

We endeavor to integrate governance and proxy voting policy with investment goals and to follow the Client Proxy Standard for each client. At times, this may result in split votes, for example when different clients have varying economic interests in the outcome of a particular voting matter (such as a case in which varied ownership interests in two companies involved in a merger result in different stakes in the outcome). We also may split votes at times based on differing views of portfolio managers, but such a split vote must be approved by the Proxy Review Committee.

We may abstain on matters for which disclosure is inadequate.

A. Routine Matters. We generally support routine management proposals. The following are examples of routine management proposals:

          • Approval of financial statements and auditor reports.

          • General updating/corrective amendments to the charter, articles of association or bylaws.

          • Most proposals related to the conduct of the annual meeting, with the following exceptions. We generally oppose proposals that relate to “the transaction of such other business which may come before the meeting,” and open-ended requests for adjournment. However, where management specifically states the reason for requesting an adjournment and the requested adjournment would facilitate passage of a proposal that would otherwise be supported under this Policy (i.e. an uncontested corporate transaction), the adjournment request will be supported.

We generally support shareholder proposals advocating confidential voting procedures and independent tabulation of voting results.

B. Board of Directors

1. Election of directors: In the absence of a proxy contest, we generally support the board’s nominees for director except as follows:

          a. We consider withholding support from or voting against interested directors if the company’s board does not meet market standards for director independence, or if otherwise we believe board independence is insufficient. We refer to prevalent market standards as promulgated by a stock exchange or other authority within a given market (e.g., New York Stock Exchange or Nasdaq rules for most U.S. companies, and The Combined Code on Corporate Governance in the United Kingdom). Thus, for an NYSE company with no controlling shareholder, we would expect that at a minimum a majority of directors should be independent as defined by NYSE. Where we view market standards as inadequate, we may withhold votes based on stronger independence standards. Market standards notwithstanding, we generally do not view long board tenure alone as a basis to classify a director as non-independent, although lack of board turnover and fresh perspective can be a negative factor in voting on directors.

          i. At a company with a shareholder or group that controls the company by virtue of a majority economic interest in the company, we have a reduced expectation for board independence, although we believe the presence of independent directors can be helpful, particularly in staffing the audit committee, and at times we may withhold support from or vote against a nominee on the view the board or its committees are not sufficiently independent.

          ii. We consider withholding support from or voting against a nominee if he or she is affiliated with a major shareholder that has representation on a board disproportionate to its economic interest.

          b. Depending on market standards, we consider withholding support from or voting against a nominee who is interested and who is standing for election as a member of the company’s compensation, nominating or audit committee.

          c. We consider withholding support from or voting against a nominee if we believe a direct conflict exists between the interests of the nominee and the public shareholders, including failure to meet fiduciary standards of care and/or loyalty. We may oppose directors where we conclude that actions of directors are unlawful, unethical or negligent. We consider opposing individual board members or an entire slate if we believe the board is entrenched and/or dealing inadequately with performance problems, and/or acting with insufficient independence between the board and management.

          d. We consider withholding support from or voting against a nominee standing for election if the board has not taken action to implement generally accepted governance practices for which there is a “bright line” test. For example, in the context of the U.S. market, failure to eliminate a dead hand or slow hand poison pills would be seen as a basis for opposing one or more incumbent nominees.

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          e. In markets that encourage designated audit committee financial experts, we consider voting against members of an audit committee if no members are designated as such.

          f. We consider withholding support from or voting against a nominee who has failed to attend at least 75% of board meetings within a given year without a reasonable excuse.

          g. We consider withholding support from or voting against a nominee who serves on the board of directors of more than six companies (excluding investment companies). We also consider voting against a director who otherwise appears to have too many commitments to serve adequately on the board of the company.

2. Board independence: We generally support U.S. shareholder proposals requiring that a certain percentage (up to 66⅔%) of the company’s board members be independent directors, and promoting all-independent audit, compensation and nominating/governance committees.

3. Board diversity: We consider on a case-by-case basis shareholder proposals urging diversity of board membership with respect to social, religious or ethnic group.

4. Majority voting: We generally support proposals requesting or requiring majority voting policies in election of directors, so long as there is a carve-out for plurality voting in the case of contested elections.

5. Proxy access: We consider on a case-by-case basis shareholder proposals to provide procedures for inclusion of shareholder nominees in company proxy statements.

6. Proposals to elect all directors annually: We generally support proposals to elect all directors annually at public companies (to “declassify” the Board of Directors) where such action is supported by the board, and otherwise consider the issue on a case-by-case basis based in part on overall takeover defenses at a company.

7. Cumulative voting: We generally support proposals to eliminate cumulative voting in the U.S. market context. (Cumulative voting provides that shareholders may concentrate their votes for one or a handful of candidates, a system that can enable a minority bloc to place representation on a board). U.S. proposals to establish cumulative voting in the election of directors generally will not be supported.

8. Separation of Chairman and CEO positions: We vote on shareholder proposals to separate the Chairman and CEO positions and/or to appoint a non-executive Chairman based in part on prevailing practice in particular markets, since the context for such a practice varies. In many non-U.S. markets, we view separation of the roles as a market standard practice, and support division of the roles in that context.

9. Director retirement age and term limits: Proposals recommending set director retirement ages or director term limits are voted on a case-by-case basis.

10. Proposals to limit directors’ liability and/or broaden indemnification of directors. Generally, we will support such proposals provided that the officers and directors are eligible for indemnification and liability protection if they have acted in good faith on company business and were found innocent of any civil or criminal charges for duties performed on behalf of the company.

C. Corporate transactions and proxy fights. We examine proposals relating to mergers, acquisitions and other special corporate transactions (i.e., takeovers, spin-offs, sales of assets, reorganizations, restructurings and recapitalizations) on a case-by-case basis. However, proposals for mergers or other significant transactions that are friendly and approved by the Research Providers generally will be supported and in those instances will not need to be reviewed by the Proxy Review Committee, where there is no portfolio manager objection and where there is no material conflict of interest. We also analyze proxy contests on a case-by-case basis.

D. Changes in capital structure.

1. We generally support the following:

• Management and shareholder proposals aimed at eliminating unequal voting rights, assuming fair economic treatment of classes of shares we hold.

• Management proposals to increase the authorization of existing classes of common stock (or securities convertible into common stock) if: (i) a clear business purpose is stated that we can support and the number of shares requested is reasonable in relation to the purpose for which authorization is requested; and/or (ii) the authorization does not exceed 100% of shares currently authorized and at least 30% of the total new authorization will be outstanding.

• Management proposals to create a new class of preferred stock or for issuances of preferred stock up to 50% of issued capital, unless we have concerns about use of the authority for anti-takeover purposes.

• Management proposals to authorize share repurchase plans, except in some cases in which we believe there are insufficient protections against use of an authorization for anti-takeover purposes.

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• Management proposals to reduce the number of authorized shares of common or preferred stock, or to eliminate classes of preferred stock.

• Management proposals to effect stock splits.

• Management proposals to effect reverse stock splits if management proportionately reduces the authorized share amount set forth in the corporate charter. Reverse stock splits that do not adjust proportionately to the authorized share amount generally will be approved if the resulting increase in authorized shares coincides with the proxy guidelines set forth above for common stock increases.

• Management proposals for higher dividend payouts.

2. We generally oppose the following (notwithstanding management support):

• Proposals to add classes of stock that would substantially dilute the voting interests of existing shareholders.

• Proposals to increase the authorized or issued number of shares of existing classes of stock that are unreasonably dilutive, particularly if there are no preemptive rights for existing shareholders.

• Proposals that authorize share issuance at a discount to market rates, except where authority for such issuance is de minimis, or if there is a special situation that we believe justifies such authorization (as may be the case, for example, at a company under severe stress and risk of bankruptcy).

• Proposals relating to changes in capitalization by 100% or more.

We consider on a case-by-case basis shareholder proposals to increase dividend payout ratios, in light of market practice and perceived market weaknesses, as well as individual company payout history and current circumstances. For example, currently we perceive low payouts to shareholders as a concern at some Japanese companies, but may deem a low payout ratio as appropriate for a growth company making good use of its cash, notwithstanding the broader market concern.

E. Takeover Defenses and Shareholder Rights

1. Shareholder rights plans: We generally support proposals to require shareholder approval or ratification of shareholder rights plans (poison pills). In voting on rights plans or similar takeover defenses, we consider on a case-by-case basis whether the company has demonstrated a need for the defense in the context of promoting long-term share value; whether provisions of the defense are in line with generally accepted governance principles; and the specific context if the proposal is made in the midst of a takeover bid or contest for control.

2. Supermajority voting requirements: We generally oppose requirements for supermajority votes to amend the charter or bylaws, unless the provisions protect minority shareholders where there is a large shareholder. In line with this view, in the absence of a large shareholder we support reasonable shareholder proposals to limit such supermajority voting requirements.

3. Shareholder rights to call meetings: We consider proposals to enhance shareholder rights to call meetings on a case-by-case basis.

4. Reincorporation: We consider management and shareholder proposals to reincorporate to a different jurisdiction on a case-by-case basis. We oppose such proposals if we believe the main purpose is to take advantage of laws or judicial precedents that reduce shareholder rights.

5. Anti-greenmail provisions: Proposals relating to the adoption of anti-greenmail provisions will be supported, provided that the proposal: (i) defines greenmail; (ii) prohibits buyback offers to large block holders (holders of at least 1% of the outstanding shares and in certain cases, a greater amount, as determined by the Proxy Review Committee) not made to all shareholders or not approved by disinterested shareholders; and (iii) contains no anti-takeover measures or other provisions restricting the rights of shareholders.

6. Bundled proposals: We may consider opposing or abstaining on proposals if disparate issues are “bundled” and presented for a single vote.

F. Auditors. We generally support management proposals for selection or ratification of independent auditors. However, we may consider opposing such proposals with reference to incumbent audit firms if the company has suffered from serious accounting irregularities and we believe rotation of the audit firm is appropriate, or if fees paid to the auditor for non-audit-related services are excessive. Generally, to determine if non-audit fees are excessive, a 50% test will be applied (i.e., non-audit-related fees should be less than 50% of the total fees paid to the auditor). We generally vote against proposals to indemnify auditors.

G. Executive and Director Remuneration.

1. We generally support the following proposals:

• Proposals for employee equity compensation plans and other employee ownership plans, provided that our research does not indicate that approval of the plan would be against shareholder interest. Such approval may be against shareholder interest if it authorizes excessive dilution and shareholder cost, particularly in the context of high usage (“run rate”) of equity compensation in the recent past; or if there are objectionable plan design and provisions.

• Proposals relating to fees to outside directors, provided the amounts are not excessive relative to other companies in the country or industry, and provided that the structure is appropriate within the market context. While stock-based compensation to outside directors is positive if moderate and appropriately structured, we are wary of significant stock option awards or other performance-based awards for outside directors, as well as provisions that could result in significant forfeiture of value on a director’s decision to resign from a board (such forfeiture can undercut director independence).

• Proposals for employee stock purchase plans that permit discounts up to 15%, but only for grants that are part of a broad-based employee plan, including all non-executive employees.

• Proposals for the establishment of employee retirement and severance plans, provided that our research does not indicate that approval of the plan would be against shareholder interest.

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2. Shareholder proposals requiring shareholder approval of all severance agreements will not be supported, but proposals that require shareholder approval for agreements in excess of three times the annual compensation (salary and bonus) generally will be supported. We generally oppose shareholder proposals that would establish arbitrary caps on pay. We consider on a case-by-case basis shareholder proposals that seek to limit Supplemental Executive Retirement Plans (SERPs), but support such proposals where we consider SERPs to be excessive.

3. Shareholder proposals advocating stronger and/or particular pay-for-performance models will be evaluated on a case-by-case basis, with consideration of the merits of the individual proposal within the context of the particular company and its labor markets, and the company’s current and past practices. While we generally support emphasis on long-term components of senior executive pay and strong linkage of pay to performance, we consider whether a proposal may be overly prescriptive, and the impact of the proposal, if implemented as written, on recruitment and retention.

4. We consider shareholder proposals for U.K.-style advisory votes on pay on a case-by-case basis.

5. We generally support proposals advocating reasonable senior executive and director stock ownership guidelines and holding requirements for shares gained in option exercises.

6. Management proposals effectively to re-price stock options are considered on a case-by-case basis. Considerations include the company’s reasons and justifications for a re-pricing, the company’s competitive position, whether senior executives and outside directors are excluded, potential cost to shareholders, whether the re-pricing or share exchange is on a value-for-value basis, and whether vesting requirements are extended.

H. Social, Political and Environmental Issues. We consider proposals relating to social, political and environmental issues on a case-by-case basis to determine whether they will have a financial impact on shareholder value. However, we generally vote against proposals requesting reports that are duplicative, related to matters not material to the business, or that would impose unnecessary or excessive costs. We may abstain from voting on proposals that do not have a readily determinable financial impact on shareholder value. We generally oppose proposals requiring adherence to workplace standards that are not required or customary in market(s) to which the proposals relate.

I. Fund of Funds. Certain Funds advised by an MSIM Affiliate invest only in other MSIM Funds. If an underlying fund has a shareholder meeting, in order to avoid any potential conflict of interest, such proposals will be voted in the same proportion as the votes of the other shareholders of the underlying fund, unless otherwise determined by the Proxy Review Committee.

III. ADMINISTRATION OF POLICY

The MSIM Proxy Review Committee (the “Committee”) has overall responsibility for creating and implementing the Policy, working with an MSIM staff group (the “Corporate Governance Team”). The Committee, which is appointed by MSIM’s Chief Investment Officer of Global Equities (“CIO”), consists of senior investment professionals who represent the different investment disciplines and geographic locations of the firm. Because proxy voting is an investment responsibility and impacts shareholder value, and because of their knowledge of companies and markets, portfolio managers and other members of investment staff play a key role in proxy voting, although the Committee has final authority over proxy votes. The Committee Chairperson is the head of the Corporate Governance Team, and is responsible for identifying issues that require Committee deliberation or ratification. The Corporate Governance Team, working with advice of investment teams and the Committee, is responsible for voting on routine items and on matters that can be addressed in line with these Policy guidelines. The Corporate Governance Team has responsibility for voting case-by-case where guidelines and precedent provide adequate guidance, and to refer other case-by-case decisions to the Proxy Review Committee.

The Committee will periodically review and have the authority to amend, as necessary, the Policy and establish and direct voting positions consistent with the Client Proxy Standard.

A. Committee Procedures

The Committee will meet at least monthly to (among other matters) address any outstanding issues relating to the Policy or its implementation. The Corporate Governance Team will timely communicate to ISS MSIM’s Policy (and any amendments and/or any additional guidelines or procedures the Committee may adopt).

The Committee will meet on an ad hoc basis to (among other matters): (1) authorize “split voting” (i.e., allowing certain shares of the same issuer that are the subject of the same proxy solicitation and held by one or more MSIM portfolios to be voted differently than other shares) and/or “override voting” (i.e., voting all MSIM portfolio shares in a manner contrary to the Policy); (2) review and approve upcoming votes, as appropriate, for matters for which specific direction has been provided in this Policy; and (3) determine how to vote matters for which specific direction has not been provided in this Policy.

Members of the Committee may take into account Research Providers’ recommendations and research as well as any other relevant information they may request or receive, including portfolio manager and/or analyst research, as applicable. Generally, proxies related to securities held in accounts that are managed pursuant to quantitative, index or index-like strategies (“Index Strategies”) will be voted in the same manner as those held in actively managed accounts, unless economic interests of the accounts differ. Because accounts managed using Index Strategies are passively managed accounts, research from portfolio managers and/or analysts related to securities held in these accounts may not be available. If the affected securities are held only in accounts that are managed pursuant to Index Strategies, and the proxy relates to a matter that is not described in this Policy, the Committee will consider all available information from the Research Providers, and to the extent that the holdings are significant, from the portfolio managers and/or analysts.

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B. Material Conflicts of Interest

In addition to the procedures discussed above, if the Committee determines that an issue raises a material conflict of interest, the Committee will request a special committee to review, and recommend a course of action with respect to, the conflict(s) in question (“Special Committee”).

The Special Committee shall be comprised of the Chairperson of the Proxy Review Committee, the Chief Compliance Officer or his/her designee, a senior portfolio manager (if practicable, one who is a member of the Proxy Review Committee) designated by the Proxy Review Committee, and MSIM’s relevant Chief Investment Officer or his/her designee, and any other persons deemed necessary by the Chairperson. The Special Committee may request the assistance of MSIM’s General Counsel or his/her designee who will have sole discretion to cast a vote. In addition to the research provided by Research Providers, the Special Committee may request analysis from MSIM Affiliate investment professionals and outside sources to the extent it deems appropriate.

C. Identification of Material Conflicts of Interest

A potential material conflict of interest could exist in the following situations, among others:

1. The issuer soliciting the vote is a client of MSIM or an affiliate of MSIM and the vote is on a material matter affecting the issuer.

2. The proxy relates to Morgan Stanley common stock or any other security issued by Morgan Stanley or its affiliates except if echo voting is used, as with MSIM Funds, as described herein.

3. Morgan Stanley has a material pecuniary interest in the matter submitted for a vote (e.g., acting as a financial advisor to a party to a merger or acquisition for which Morgan Stanley will be paid a success fee if completed).

If the Chairperson of the Committee determines that an issue raises a potential material conflict of interest, depending on the facts and circumstances, the Chairperson will address the issue as follows:

1. If the matter relates to a topic that is discussed in this Policy, the proposal will be voted as per the Policy.

2. If the matter is not discussed in this Policy or the Policy indicates that the issue is to be decided case-by-case, the proposal will be voted in a manner consistent with the Research Providers, provided that all the Research Providers have the same recommendation, no portfolio manager objects to that vote, and the vote is consistent with MSIM’s Client Proxy Standard.

3. If the Research Providers’ recommendations differ, the Chairperson will refer the matter to the Committee to vote on the proposal. If the Committee determines that an issue raises a material conflict of interest, the Committee will request a Special Committee to review and recommend a course of action, as described above. Notwithstanding the above, the Chairperson of the Committee may request a Special Committee to review a matter at any time as he/she deems necessary to resolve a conflict.

D. Proxy Voting Reporting

The Committee and the Special Committee, or their designee(s), will document in writing all of their decisions and actions, which documentation will be maintained by the Committee and the Special Committee, or their designee(s), for a period of at least 6 years. To the extent these decisions relate to a security held by an MSIM Fund, the Committee and Special Committee, or their designee(s), will report their decisions to each applicable Board of Trustees/Directors of those Funds at each Board’s next regularly scheduled Board meeting. The report will contain information concerning decisions made by the Committee and Special Committee during the most recently ended calendar quarter immediately preceding the Board meeting.

The Corporate Governance Team will timely communicate to applicable portfolio managers and to ISS, decisions of the Committee and Special Committee so that, among other things, ISS will vote proxies consistent with their decisions.

MSIM will promptly provide a copy of this Policy to any client requesting it. MSIM will also, upon client request, promptly provide a report indicating how each proxy was voted with respect to securities held in that client’s account.

MSIM’s Legal Department is responsible for filing an annual Form N-PX on behalf of each MSIM Fund for which such filing is required, indicating how all proxies were voted with respect to such Fund’s holdings.

APPENDIX A

The following procedures apply to accounts managed by Morgan Stanley AIP GP LP (“AIP”).

Generally, AIP will follow the guidelines set forth in Section II of MSIM’s Proxy Voting Policy and Procedures. To the extent that such guidelines do not provide specific direction, or AIP determines that consistent with the Client Proxy Standard, the guidelines should not be followed, the Proxy Review Committee has delegated the voting authority to vote securities held by accounts managed by AIP to the Liquid Markets investment team and the Private Markets investment team of AIP. A summary of decisions made by the investment teams will be made available to the Proxy Review Committee for its information at the next scheduled meeting of the Proxy Review Committee.

In certain cases, AIP may determine to abstain from determining (or recommending) how a proxy should be voted (and therefore abstain from voting such proxy or recommending how such proxy should be voted), such as where the expected cost of giving due consideration to the proxy does not justify the potential benefits to the affected account(s) that might result from adopting or rejecting (as the case may be) the measure in question.

Waiver of Voting Rights For regulatory reasons, AIP may either 1) invest in a class of securities of an underlying fund (the “Fund”) that does not provide for voting rights; or 2) waive 100% of its voting rights with respect to the following:

1. Any rights with respect to the removal or replacement of a director, general partner, managing member or other person acting in a similar capacity for or on behalf of the Fund (each individually a “Designated Person,” and collectively, the “Designated Persons”), which may include, but are not limited to, voting on the election or removal of a Designated Person in the event of such Designated Person’s death, disability, insolvency, bankruptcy, incapacity, or other event requiring a vote of interest holders of the Fund to remove or replace a Designated Person; and

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2. Any rights in connection with a determination to renew, dissolve, liquidate, or otherwise terminate or continue the Fund, which may include, but are not limited to, voting on the renewal, dissolution, liquidation, termination or continuance of the Fund upon the occurrence of an event described in the Fund’s organizational documents; provided, however, that, if the Fund’s organizational documents require the consent of the Fund’s general partner or manager, as the case may be, for any such termination or continuation of the Fund to be effective, then AIP may exercise its voting rights with respect to such matter.

APPENDIX B

The following procedures apply to the portion of the Van Kampen Dynamic Credit Opportunities Fund (“VK Fund”) sub advised by Avenue Europe International Management, L.P. (“Avenue”). (The portion of the VK Fund managed solely by Van Kampen Asset Management will continue to be subject to MSIM’s Policy.)

1. Generally: With respect to Avenue’s portion of the VK Fund, the Board of Trustees of the VK Fund will retain sole authority and responsibility for proxy voting. The Adviser’s involvement in the voting process of Avenue’s portion of the VK Fund is a purely administrative function, and serves to execute and deliver the proxy voting decisions made by the VK Fund Board in connection with the Avenue portion of the VK Fund, which may, from time to time, include related administrative tasks such as receiving proxies, following up on missing proxies, and collecting data related to proxies. As such, the Adviser shall not be deemed to have voting power or shared voting power with Avenue with respect to Avenue’s portion of the Fund.

2. Voting Guidelines: All proxies, with respect to Avenue’s portion of the VK Fund, will be considered by the VK Fund Board or such subcommittee as the VK Fund Board may designate from time to time for determination and voting approval. The VK Board or its subcommittee will timely communicate to MSIM’s Corporate Governance Group its proxy voting decisions, so that among other things the votes will be effected consistent with the VK Board’s authority.

3. Administration: The VK Board or its subcommittee will meet on an adhoc basis as may be required from time to time to review proxies that require its review and determination. The VK Board or its subcommittee will document in writing all of its decisions and actions which will be maintained by the VK Fund, or its designee(s), for a period of at least 6 years. If a subcommittee is designated, a summary of decisions made by such subcommittee will be made available to the full VK Board for its information at its next scheduled respective meetings.

Neuberger Berman, LLC
Neuberger Berman Management LLC

PROXY VOTING POLICIES AND PROCEDURES
Non-Socially Responsive Clients

I. Introduction and General Principles

A. Neuberger Berman, LLC and Neuberger Berman Management LLC (collectively, “NB”) have been delegated the authority and responsibility to vote the proxies of their respective investment advisory clients, including both ERISA and non-ERISA clients.

B. NB understands that proxy voting is an integral aspect of investment management. Accordingly, proxy voting must be conducted with the same degree of prudence and loyalty accorded any fiduciary or other obligation of an investment manager.

C. NB believes that the following policies and procedures are reasonably expected to ensure that proxy matters are conducted in the best interest of clients, in accordance with NB’s fiduciary duties, applicable rules under the Investment Advisers Act of 1940 and fiduciary standards and responsibilities for ERISA clients set out in Department of Labor interpretations.

D. In instances where NB does not have authority to vote client proxies, it is the responsibility of the client to instruct the relevant custody bank or banks to mail proxy material directly to such client.

E. In all circumstances, NB will comply with specific client directions to vote proxies, whether or not such client directions specify voting proxies in a manner that is different from NB’s policies and procedures.

F. There may be circumstances under which NB may abstain from voting a client proxy for cost reasons (e.g., non-U.S. securities). NB understands that it must weigh the costs and benefits of voting proxy proposals relating to foreign securities and make an informed decision with respect to whether voting a given a proxy proposal is prudent and solely in the interests of the clients and, in the case of an ERISA client, the plan’s participants and beneficiaries. NB’s decision in such circumstances will take into account the effect that the proxy vote, either by itself or together with other votes, is expected to have on the value of the client’s investment and whether this expected effect would outweigh the cost of voting.

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II. Responsibility and Oversight

A. NB has designated a Proxy Committee with the responsibility for administering and overseeing the proxy voting process, including:

(1) developing, authorizing, implementing and updating NB’s policies and procedures;

(2) overseeing the proxy voting process; and

(3) engaging and overseeing any third-party vendors as voting delegate to review, monitor and/or vote proxies.

B. Such Proxy Committee will meet as frequently and in such manner as necessary or appropriate to fulfill its responsibilities.

C. The members of the Proxy Committee will be appointed from time to time and will include the Chief Investment Officer, a senior portfolio manager and senior members of the Legal and Compliance and Portfolio Administration Departments.

D. In the event that one or more members of the Proxy Committee are not independent with respect to a particular matter, the Proxy Committee shall appoint an independent subcommittee of the Proxy Committee, which will have full authority to act upon such matter.

III. Proxy Voting Guidelines

A. NB has determined that, except as set forth below, proxies will be voted in accordance with the recommendations contained in the applicable Glass, Lewis & Co. Proxy Paper Voting Guidelines, as in effect from time to time. A summary of the current applicable Glass Lewis guidelines is attached to these NB Voting Policies and Procedures as Exhibit A.

B. Except as set forth below, in the event the foregoing proxy voting guidelines do not address how a proxy should be voted, the proxy will be voted in accordance with Glass Lewis recommendations. In the event that Glass Lewis refrains from making a recommendation, the Proxy Committee will follow the procedures set forth in Section V, Paragraph C.

C. There may be circumstances under which the Chief Investment Officer, a portfolio manager or other NB investment professional (“NB Investment Professional”) believes that it is in the best interest of a client or clients to vote proxies in a manner inconsistent with the foregoing proxy voting guidelines or in a manner inconsistent with Glass Lewis guidelines. In such event, the procedures set forth in Section V, Paragraph B will be followed.

IV. Proxy Voting Procedures

A. NB will vote client proxies in accordance with a client’s specific request even if it is in a manner inconsistent with NB’s policies and procedures. Such specific requests must be made in writing by the individual client or by an authorized officer, representative or named fiduciary of a client.

B. At the recommendation of the Proxy Committee, NB has engaged Glass Lewis as its voting delegate to:

(1) research and make voting determinations in accordance with the proxy voting guidelines described in Section III;

(2) vote and submit proxies in a timely manner;

(3) handle other administrative functions of proxy voting;

(4) maintain records of proxy statements received in connection with proxy votes and provide copies of such proxy statements promptly upon request;

(5) maintain records of votes cast; and

(6) provide recommendations with respect to proxy voting matters in general.

C. Except in instances where clients have retained voting authority, NB will instruct custodians of client accounts to forward all proxy statements and materials received in respect of client accounts to Glass Lewis.

D. Notwithstanding the foregoing, NB retains final authority and fiduciary responsibility for proxy voting.

V. Conflicts of Interest

A. Glass Lewis will vote proxies in accordance with the proxy voting guidelines described in Section III or as Glass Lewis recommends. NB believes that this process is reasonably designed to address material conflicts of interest that may arise between NB and a client as to how proxies are voted.

B. In the event that an NB Investment Professional believes that it is in the best interest of a client or clients to vote proxies in a manner inconsistent with the proxy voting guidelines described in Section III or in a manner inconsistent with Glass Lewis recommendations, such NB Investment Professional will contact a member of the Proxy Committee and complete and sign a questionnaire in the form adopted from time to time. Such questionnaire will require specific information, including the reasons the NB

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Investment Professional believes a proxy vote in this manner is in the best interest of a client or clients and disclosure of specific ownership, business or personal relationship or other matters that may raise a potential material conflict of interest between NB and the client or clients with respect to the voting of the proxy.

The Proxy Committee will review the questionnaire completed by the NB Investment Professional and consider such other matters as it deems appropriate to determine that there is no material conflict of interest between NB and the client or clients with respect to the voting of the proxy in that manner. The Proxy Committee shall document its consideration of such other matters in a form adopted by the Proxy Committee from time to time.

In the event that the Proxy Committee determines that such vote will not present a material conflict between NB and the client or clients, the Proxy Committee will make a determination whether to vote such proxy as recommended by the NB Investment Professional. In the event of a determination to vote the proxy as recommended by the NB Investment Professional, an authorized member of the Proxy Committee will instruct Glass Lewis to vote in such manner with respect to the client or clients.

In the event that the Proxy Committee determines that the voting of a proxy as recommended by the NB Investment Professional presents a material conflict of interest between NB and the client or clients with respect to the voting of the proxy, the Proxy Committee will: (i) take no further action, in which case Glass Lewis shall vote such proxy in accordance with the proxy voting guidelines described in Section III or as Glass Lewis recommends; (ii) disclose such conflict to the client or clients and obtain written direction from the client or clients as to how to vote the proxy; (iii) suggest that the client or clients engage another party to determine how to vote the proxy; or (iv) engage another independent third party to determine how to vote the proxy.

C. In the event that the proxy voting guidelines described in Section III do not address how a proxy should be voted and Glass Lewis refrains from making a recommendation as to how such proxy should be voted, the Proxy Committee will make a determination as to how the proxy should be voted. After determining how it believes the proxy should be voted, the Proxy Committee will consider such matters as it deems appropriate to determine that there is no material conflict of interest between NB and the client or clients with respect to the voting of the proxy in that manner. The Proxy Committee shall document its consideration of such matters in a form adopted by the Proxy Committee from time to time.

In the event that the Proxy Committee determines that such vote will not present material conflict between NB and the client, an authorized member of the Proxy Committee will instruct Glass Lewis to vote in such manner with respect to such client or clients.

In the event that the Proxy Committee determines that such vote will present a material conflict of interest between NB and the client or clients with respect to the voting of the proxy, the Proxy Committee will: (i) disclose such conflict to the client or clients and obtain written direction from the client or clients as to how to vote the proxy; (ii) suggest that the client or clients engage another party to determine how proxies should be voted; or (iii) engage another independent third party to determine how proxies should be voted.

D. Material conflicts cannot be resolved by simply abstaining from voting.

VI. Recordkeeping

NB will maintain records relating to the implementation of these proxy voting policies and procedures, including:

(1) a copy of these policies and procedures, which shall be made available to clients upon request

(2) proxy statements received regarding client securities (which will be satisfied by relying on EDGAR or Glass Lewis);

(3) a record of each vote cast (which Glass Lewis maintains on NB’s behalf);

(4) a copy of each questionnaire completed by any NB Investment Professional under Section V above;

(5) any other document created by NB that was material to making a decision how to vote proxies on behalf of a client or that memorializes the basis for that decision; and

(6) each written client request for proxy voting records and NB’s written response to any client request (written or oral) for such records.

Such proxy voting books and records shall be maintained in an easily accessible place for a period of five years, the first two by the Proxy Committee member who represents the Portfolio Administration Department.

VII. Disclosure

Except as otherwise required by law or with the consent of the client, NB has a general policy of not disclosing to any issuer or third party how NB or its voting delegate voted a client’s proxy.

Effective February 2007

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Proxy Committee as of February 2007

Jack Rivkin	Chief Investment Officer
Judith Vale	Portfolio Manager
Maxine Gerson	Legal and Compliance
Vincent Pecoraro	Portfolio Administration

OppenheimerFunds, Inc.

OppenheimerFunds, Inc. (“Oppenheimer”) has adopted Portfolio Proxy Voting Policies and Procedures under which Oppenheimer votes proxies relating to securities (“portfolio proxies”) held by the fund. Oppenheimer’s primary consideration in voting portfolio proxies is the financial interests of the fund and its shareholders. The fund has retained an unaffiliated third-party as its agent to vote portfolio proxies in accordance with the fund’s Portfolio Proxy Voting Guidelines and to maintain records of such portfolio proxy voting. The Proxy Voting Guidelines include provisions to address conflicts of interest that may arise between the fund and the portfolio manager where a directly-controlled affiliate of the portfolio manager manages or administers the assets of a pension plan of a company soliciting the proxy. The fund’s Portfolio Proxy Voting Guidelines on routine and non-routine proxy proposals are summarized below.

• The fund votes with the recommendation of the issuer’s management on routine matters, including election of directors nominated by management and ratification of the independent registered public accounting firm, unless circumstances indicate otherwise.

• In general, the fund opposes “anti-takeover” proposals and supports the elimination of anti-takeover proposals, absent unusual circumstances.

• The fund supports shareholder proposals to reduce a super-majority vote requirement, and opposes management proposals to add a super-majority vote requirement.

• The fund opposes proposals to classify the board of directors.

• The fund supports proposals to eliminate cumulative voting.

• The fund opposes re-pricing of stock options.

• The fund generally considers executive compensation questions such as stock option plans and bonus plans to be ordinary business activity. The fund analyzes stock option plans, paying particular attention to their dilutive effect. While the fund generally supports management proposals, the Fund opposes plans it considers to be excessive.

Pacific Investment Management Company LLC

Description of Proxy Voting Policies and Procedures. Pacific Investment Management Company LLC (“PIMCO”) has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. PIMCO has implemented the Proxy Policy for each of its clients as required under applicable law, unless expressly directed by a client in writing to refrain from voting that client’s proxies. Recognizing that proxy voting is a rare event in the realm of fixed income investing and is typically limited to solicitation of consent to changes in features of debt securities, the Proxy Policy also applies to any voting rights and/or consent rights of PIMCO, on behalf of its clients, with respect to debt securities, including but not limited to, plans of reorganization, and waivers and consents under applicable indentures.

The Proxy Policy is designed and implemented in a manner reasonably expected to ensure that voting and consent rights are exercised in the best interests of PIMCO’s clients. Each proxy is voted on a case-by-case basis taking into consideration any relevant contractual obligations as well as other relevant facts and circumstances at the time of the vote. In general, PIMCO reviews and considers corporate governance issues related to proxy matters and generally supports proposals that foster good corporate governance practices. PIMCO may vote proxies as recommended by management on routine matters related to the operation of the issuer and on matters not expected to have a significant economic impact on the issuer and/or its shareholders.

PIMCO will supervise and periodically review its proxy voting activities and implementation of the Proxy Policy. PIMCO will review each proxy to determine whether there may be a material conflict between PIMCO and its client. If no conflict exists, the proxy will be forwarded to the appropriate portfolio manager for consideration. If a conflict does exist, PIMCO will seek to resolve any such conflict in accordance with the Proxy Policy. PIMCO seeks to resolve any material conflicts of interest by voting in good faith in the best interest of its clients. If a material conflict of interest should arise, PIMCO will seek to resolve such conflict in the client’s best interest by pursuing any one of the following courses of action: (i) convening a committee to assess and resolve the conflict; (ii) voting in accordance with the instructions of the client; (iii) voting in accordance with the recommendation of an independent third-party service provider; (iv) suggesting that the client engage another party to determine how the proxy should be voted; (v) delegating the vote to a third-party service provider; or (vi) voting in accordance with the factors discussed in the Proxy Policy.

Clients may obtain a copy of PIMCO’s written Proxy Policy and the factors that PIMCO may consider in determining how to vote a client’s proxy. Except as required by law, PIMCO will not disclose to third parties how it voted on behalf of a client. However, upon request from an appropriately authorized individual, PIMCO will disclose to its clients or the entity delegating the voting authority to PIMCO for such clients, how PIMCO voted such client’s proxy. In addition, a client may obtain copies of PIMCO’s Proxy Policy and information as to how its proxies have been voted by contacting PIMCO.

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Schroder Investment Management North America Inc.

Policy Relating To Identifying And Acting Upon Conflicts Of Interest In Connection With Its Proxy Voting Obligations

This document sets forth Schroder Investment Management North America Inc.’s (“Schroders”) policy with respect to proxy voting and its procedures to comply with Rule 206(4)-6 under the Investment Advisers Act of 1940 and Rule 30b1-4 under the Investment Company Act of 1940. Specifically, Rule 206(4)-6 requires that Schroders:

• Adopt and implement written policies and procedures reasonably designed to ensure that proxies are voted in the best interest of clients and

• Disclose its proxy voting policies and procedures to clients and inform them how they may obtain information about how Schroders voted proxies.

Rule 30b1-4 requires that the Schroders US Mutual Funds (the “Funds”):

• Disclose their proxy voting policies and procedures in their registration statements and

• Annually, file with the SEC and make available to shareholders their actual proxy voting.

(A) PROXY VOTING GENERAL PRINCIPLES

Schroders will evaluate and usually vote for or against all proxy requests relating to securities held in any account managed by Schroders (unless this responsibility has been retained by the client).

Proxies will be treated and evaluated with the same attention and investment skill as the trading of securities in the accounts.

Proxies will be voted in a manner which is deemed most likely to protect and enhance the longer term value of the security as an asset to the account.

PROXY COMMITTEE

The Proxy Committee consists of investment professionals and other officers and is responsible for ensuring compliance with this proxy voting policy. The Committee meets quarterly to review proxies voted, policy guidelines and to examine any issues raised, including a review of any votes cast in connection with controversial issues.

The procedure for evaluating proxy requests is as follows:

Schroders’ Global Corporate Governance Team (the “Team”) is responsible for the initial evaluation of the proxy request, for seeking advice where necessary, especially from the US small cap and mid cap product heads, and for consulting with portfolio managers who have invested in the company should a controversial issue arise.

When making proxy-voting decisions, Schroders generally adheres to the Global Corporate Governance Policy (the “Policy”), as revised from time to time. The Policy, which has been developed by Schroders’ Global Corporate Governance Team and approved by the Schroders Proxy Committee, sets forth Schroders’ positions on recurring issues and criteria for addressing non-recurring issues. The Policy is a part of these procedures and is incorporated herein by reference. The Proxy Committee exercises oversight to assure that proxies are voted in accordance with the Policy and that any votes inconsistent with the Policy or against management are appropriately documented.

Schroders uses Institutional Shareholder Services, Inc. (“ISS”) to assist in voting proxies. ISS provides proxy research, voting and vote-reporting services. ISS’s primary function with respect to Schroders is to apprise the Group of shareholder meeting dates of all securities holdings, translate proxy materials received from companies, provide associated research and provide considerations and recommendations for voting on particular proxy proposals. Although Schroders may consider ISS’s and others’ recommendations on proxy issues, Schroders bears ultimate responsibility for proxy voting decisions.

Schroders may also consider the recommendations and research of other providers, including the National Association of Pension Funds’ Voting Issues Service.

CONFLICTS

From time to time, proxy voting proposals may raise conflicts between the interests of Schroders’ clients and the interests of Schroders and/or its employees. Schroders is adopting this policy and procedures to ensure that decisions to vote the proxies are based on the clients’ best interests.

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For example, conflicts of interest may arise when:

• Proxy votes regarding non-routine matters are solicited by an issuer that, directly or indirectly, has a client relationship with Schroders;

• A proponent of a proxy proposal has a client relationship with Schroders;

• A proponent of a proxy proposal has a business relationship with Schroders;

• Schroders has business relationships with participants in proxy contests, corporate directors or director candidates;

The Team is responsible for identifying proxy voting proposals that may present a material conflict of interest. If Schroders receives a proxy relating to an issuer that raises a conflict of interest, the Team shall determine whether the conflict is “material” to any specific proposal included within the proxy. The Team will determine whether a proposal is material as follows:

• Routine Proxy Proposals: Proxy proposals that are “routine” shall be presumed not to involve a material conflict of interest unless the Team has actual knowledge that a routine proposal should be treated as material. For this purpose, “routine” proposals would typically include matters such as uncontested election of directors, meeting formalities, and approval of an annual report/financial statements.

• Non-Routine Proxy Proposals: Proxy proposals that are “non-routine” will be presumed to involve a material conflict of interest, unless the Team determines that neither Schroders nor its personnel have a conflict of interest or the conflict is unrelated to the proposal in question. For this purpose, “non-routine” proposals would typically include any contested matter, including a contested election of directors, a merger or sale of substantial assets, a change in the articles of incorporation that materially affects the rights of shareholders, and compensation matters for management (e.g., stock, option plans, retirement plans, profit-sharing or other special remuneration plans). If the Team determines that there is, or may be perceived to be, a conflict of interest when voting a proxy, Schroders will address matters involving such conflicts of interest as follows: A. If a proposal is addressed by the Policy, Schroders will vote in accordance with such Policy; B. If Schroders believes it is in the best interests of clients to depart from the Policy, Schroders will be subject to the requirements of C or D below, as applicable; C. If the proxy proposal is (1) not addressed by the Policy or (2) requires a case-by-case determination, Schroders may vote such proxy as it determines to be in the best interest of clients, without taking any action described in D below, provided that such vote would be against Schroders’ own interest in the matter (i.e., against the perceived or actual conflict). The rationale of such vote will be memorialized in writing; and D. If the proxy proposal is (1) not addressed by the Policy or (2) requires a case-by-case determination, and Schroders believes it should vote in a way that may also benefit, or be perceived to benefit, its own interest, then Schroders must take one of the following actions in voting such proxy: (a) vote in accordance with ISS’ recommendation; (b) inform the client(s) of the conflict of interest and obtain consent to vote the proxy as recommended by Schroders; or (c) obtain approval of the decision from the Chief Compliance Officer and the Chief Investment Officer. The rationale of such vote will be memorialized in writing.

RECORD OF PROXY VOTING The Team will maintain, or have available, written or electronic copies of each proxy statement received and of each executed proxy.

The Team will also maintain records relating to each proxy, including (i) the voting decision with regard to each proxy; and (ii) any documents created by the Team and/or the Proxy Committee, or others, that were material to making the voting decision; (iii) any decisions of the Chief Compliance Officer and the Chief Investment Officer.

Schroders will maintain a record of each written request from a client for proxy voting information and its written response to any request (oral or written) from any client for proxy voting information.

Such records will be maintained for six years and may be retained electronically.

Additional Reports and Disclosures for the Schroder Funds

The Funds must disclose their policies and procedures for voting proxies in their Statement of Additional Information. In addition to the records required to be maintained by Schroders, the following information will be made available to the Funds or their agent to enable the Funds to file Form N-PX under Rule 30b1-4: For each matter on which a fund is entitled to vote:

• Name of the issuer of the security;

• Exchange ticker symbol;

• CUSIP number, if available;

• Shareholder meeting date;

• Brief summary of the matter voted upon;

• Source of the proposal, i.e., issuer or shareholder;

• Whether the fund voted on the matter;

• How the fund voted; and

• Whether the fund voted with or against management.

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Further, the Funds are required to make available to shareholders the Funds’ actual proxy voting record. If requested, the most recently filed Form N-PX must be sent within three (3) days of receipt of the request.

July 30, 2003

Templeton Investment Counsel, LLC

Templeton (hereinafter “Adviser”) has delegated its administrative duties with respect to voting proxies to the Proxy Group within Franklin Templeton Companies, LLC (the “Proxy Group”), an affiliate and wholly owned subsidiary of Franklin Resources, Inc.

All proxies received by the Proxy Group will be voted based upon Adviser’s instructions and/or policies. To assist it in analyzing proxies, Adviser subscribes to RiskMetrics Group (“RiskMetrics”), an unaffiliated third party corporate governance research service that provides in-depth analyses of shareholder meeting agendas, vote recommendations, record keeping and vote disclosure services. In addition, Adviser subscribes to Glass Lewis & Co., LLC (“Glass Lewis”), an unaffiliated third party analytical research firm, to receive analyses and vote recommendations on the shareholder meetings of publicly held U.S. companies. Although RiskMetrics’ and/or Glass Lewis’ analyses are thoroughly reviewed and considered in making a final voting decision, Adviser does not consider recommendations from RiskMetrics, Glass Lewis, or any other third party to be determinative of Adviser’s ultimate decision. Adviser votes proxies solely in the interests of the client, Adviser-managed fund shareholders. As a matter of policy, the officers, directors and employees of Adviser and the Proxy Group will not be influenced by outside sources whose interests conflict with the interests of Advisory Clients. Efforts are made to resolve all conflicts in the interests of the manager’s clients. Material conflicts of interest are identified by the Proxy Group based upon analyses of client, broker and vendor lists, information periodically gathered from directors and officers, and information derived from other sources, including public filings. In situations where Adviser perceives a material conflict of interest, Adviser may: defer to the voting recommendation of the Advisory Clients, RiskMetrics, Glass Lewis, or those of another independent third party provider of proxy services; send the proxy directly Fund with a recommendation regarding the vote for approval. If the conflict is not resolved by the Fund, the Proxy Group may refer the matter, along with the recommended course of action by the manager to an interdepartmental Proxy Review Committee (which may include portfolio managers and/or research analysts employed by the manager), for evaluation and voting instructions. The Proxy Review Committee may defer to the voting recommendation of RiskMetrics, Glass Lewis or those of another independent third party provider of proxy services; or send the proxy directly to the Fund. Where the Proxy Group or the Proxy Review Committee refers a matter to the Fund, it may rely upon the instructions of a representative of the Fund, such as the board of trustees or a committee of the board.

Where a material conflict of interest has been identified, but the items on which the manager’s vote recommendations differ from Glass Lewis, RiskMetrics, or another independent third party provider of proxy services relate specifically to (1) shareholder proposals regarding social or environmental issues or political contributions, (2) “Other Business” without describing the matters that might be considered, or (3) items the manager wishes to vote in opposition to the recommendations of an issuer’s management, the Proxy Group may defer to the vote recommendations of the manager rather than sending the proxy directly to the Fund for approval.

To avoid certain potential conflicts of interest, the manager will employ echo voting, if possible, in the following instances: (1) when the Fund invests in an underlying fund in reliance on Section 12(d)(1) of the 1940 Act, or pursuant to an SEC exemptive order; (2) when the Fund invests uninvested cash in affiliated money market funds pursuant to an SEC exemptive order (“cash sweep arrangement”); or (3) when required pursuant to the Fund’s governing documents or applicable law. Echo voting means that the investment manager will vote the shares in the same proportion as the vote of all of the other holders of the Fund’s shares.

The recommendation of management on any issue is a factor which the manager considers in determining how proxies should be voted, but is not determinative of the manager’s ultimate decision. As a matter of practice, the votes with respect to most issues are cast in accordance with the position of the company’s management. Each issue, however, is considered on its own merits, and Adviser will not support the position of the company’s management in any situation where it deems that the ratification of management’s position would adversely affect the investment merits of owning that company’s shares.

The Proxy Group is part of the Franklin Templeton Companies, LLC Corporate Legal Department and is overseen by legal counsel. For each shareholder meeting, a member of the Proxy Group will consult with the research analyst that follows the security and will provide the analyst with the meeting notice, agenda, RiskMetrics and/or Glass Lewis analyses, recommendations and any other available information. Adviser’s research analyst and relevant portfolio manager(s) are responsible for making the final voting decision based on their review of the agenda, RiskMetrics and/or Glass Lewis analyses, their knowledge of the company and any other information readily available. The Proxy Group must obtain voting instructions from Adviser’s research analyst, relevant portfolio manager(s) and/or legal counsel prior to submitting the vote.

Adviser has adopted general proxy voting guidelines that are reviewed periodically by various members of Adviser’s organization, including portfolio management, legal counsel and Adviser’s officers, and are subject to change. These guidelines cannot provide an exhaustive list of all the issues that may arise nor can Adviser anticipate all future situations. The guidelines cover such agenda items as the election of directors, ratification of auditors, management and director compensation, anti-takeover mechanisms, changes to capital structure, mergers and corporate restructuring, social and corporate policy issues, and global corporate governance.

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The Proxy Group is fully cognizant of its responsibility to process proxies and maintain proxy records pursuant to SEC rules and regulations. In addition, Adviser understands its fiduciary duty to vote proxies and that proxy voting decisions may affect the value of shareholdings. Therefore, Adviser will attempt to process every proxy it receives for all domestic and foreign proxies. However, there may be situations in which Adviser cannot process proxies, for example, where a meeting notice was received too late, or sell orders preclude the ability to vote. If a security is on loan, the manager may determine that it is not in the best interests of the Fund to recall the security for voting purposes. Also, the Adviser may abstain from voting under certain circumstances or vote against items such as “Other Business” when Adviser is not given adequate information from the company.

The Proxy Group is responsible for maintaining the documentation that supports Adviser’s voting position. The Proxy Group is also responsible for maintaining appropriate proxy voting supporting documentation and records. Such records may include, but are not limited to, a copy of all materials returned to the issuer and/or its agent, the documentation described above, listings of proxies voted by issuer and by client, and any other relevant information. Shareholders may view the complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of their proxy voting records and Adviser’s complete proxy voting policies and procedures the Policies free of charge by calling the Proxy Group collect at 1-(954- 527-7678) or by sending a written request to: Franklin Templeton Companies, LLC, 500 East Broward Boulevard, Suite 1500, Fort Lauderdale, FL 33394, Attention: Proxy Group. Copies of the Fund’s proxy voting records are available online at franklintempleton.com and posted on the SEC website at www.sec.gov. The proxy voting records are updated each year by August 31 to reflect the most recent 12-month period ended June 30.

Third Avenue Management LLC

SUMMARY OF PROXY VOTING POLICIES AND PROCEDURES

This summary describes Third Avenue Management LLC’s (“Third Avenue”) policy and procedures for voting securities held in its investment advisory accounts. If you wish to receive a copy of the full policy and procedures or information on how proxies were voted in your account, please contact your account representative.

In general, Third Avenue is responsible for voting securities held in its investment advisory accounts. However, in certain cases, in accordance with the agreement governing the account, the client may expressly retain the authority to vote proxies or delegate voting authority to a third party. In such cases, the policy and procedures below would not apply and TAM would advise the client to instruct its custodian where to forward solicitation materials.

POLICY GUIDELINES

Third Avenue has developed detailed policy guidelines on voting commonly presented proxy issues, which are subject to ongoing review. The guidelines are subject to exceptions on a case-by-case basis, as discussed below. On issues not specifically addressed by the guidelines, Third Avenue would analyze how the proposal may affect the value of the securities held by the affected clients and vote in accordance with what it believes to be the best interests of such clients.

Abstention From Voting

Third Avenue will normally abstain from voting when it believes the cost of voting will exceed the expected benefit to investment advisory clients. The most common circumstances where that may be the case involve foreign proxies and securities out on loan. In addition, Third Avenue may be restricted from voting proxies of a given issuer during certain periods if it has made certain regulatory filings with respect to that issuer.

PROCEDURES

Third Avenue’s Legal Department oversees the administration of proxy voting. Under its supervision, the Accounting Department is responsible for processing proxies on securities held in mutual funds for which Third Avenue serves as adviser or sub-adviser¹⁶ and the Operations Department is responsible for processing proxies on securities held in all other investment advisory accounts for which Third Avenue has voting responsibility¹.

Sole Voting Responsibility

The Operations and Accounting Departments forward proxy and other solicitation materials received to the General Counsel or his designee who shall present the proxies to Third Avenue’s Proxy Voting Committee. The Proxy Voting Committee, consisting of senior portfolio managers and research analysts designated by Third Avenue’s President, determines how the proxies shall be voted applying Third Avenue’s policy guidelines. In most instances, the Committee shall delegate the responsibility for making each voting determination to an appropriate member of the Committee who has primary responsibility for the security in question. Third Avenue’s General Counsel or his designee shall participate in all decisions to present issues for a vote, field any conflict issues, document deviations from policy guidelines and document all routine voting decisions. The Proxy Voting Committee may seek the input of Third Avenue’s Co-Chief Investment Officers or other portfolio managers or research analysts who may have particular familiarity with the matter to be voted. Any exception to policy guidelines shall be fully documented in writing. Third Avenue’s General Counsel instructs the Operations and Accounting Departments to vote the proxies in accordance with determinations reached under the process described above. The Operations and Accounting Departments vote the proxies by an appropriate method in accordance with instructions received.

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Shared Voting Responsibility

Third Avenue may share voting responsibility with a client who has retained the right to veto Third Avenue’s voting decisions. Under such circumstances, the Operations Department would provide a copy of the proxy material to the client reserving this right, along with TAM’s determination of how it plans vote the proxy, unless instructed otherwise by the client prior to the relevant deadline.

Conflicts of Interest

Should any portfolio manager, research analyst, member of senior management or anyone else at Third Avenue who may have direct or indirect influence on proxy voting decisions become aware of a potential or actual conflict of interest in voting a proxy or the appearance of a conflict of interest, that person shall bring the issue to Third Avenue’s General Counsel. Third Avenue’s General Counsel shall analyze each potential or actual conflict presented to determine materiality and shall document each situation and its resolution. When presented with an actual or potential conflict in voting a proxy, Third Avenue’s General Counsel shall address the matter using an appropriate method to assure that the proxy vote is free from any improper influence, by (1) determining that there is no conflict or that it is immaterial, (2) ensuring that Third Avenue votes in accordance with a predetermined policy, (3) following the published voting policy of Institutional Shareholder Services, (4) engaging an independent third party professional to vote the proxy or advise Third Avenue how to vote or (5) presenting the conflict to one or more of the clients involved and obtaining direction on how to vote.

Recordkeeping

Third Avenue shall maintain required records relating to votes cast, client requests for information and Third Avenue’s proxy voting policies and procedures in accordance with applicable law.

¹ Advisers of certain mutual funds sub-advised by Third Avenue have retained their own authority to vote proxies.

Thornburg Investment Management, Inc.

THORNBURG INVESTMENT MANAGEMENT, INC. AND
THORNBURG INVESTMENT TRUST
POLICY ON PROXY VOTING

Policy Objectives

This Policy has been adopted by Thornburg Investment Management, Inc. (“Thornburg”) to facilitate the voting of proxies relating to portfolio securities in what it perceives to be the best interests of persons for whom Thornburg performs investment management services and is authorized and required to vote or consider voting proxies.

Thornburg Investment Trust has delegated to Thornburg the authority to vote proxies relating to its portfolio securities in accordance with this Policy.

This Policy is intended by Thornburg to constitute “written policies and procedures” as described in Rule 206(4)—6 under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). This Policy is intended by Thornburg Investment Trust to constitute proxy voting policies and procedures referred to in Item 13 of Form N-1A adopted under the Investment Company Act of 1940, as amended (the “Investment Company Act”).

Please see the Glossary of Terms for definitions of terms used in this Policy.

Voting Objectives

This Policy defines procedures for voting securities in each Account managed by Thornburg, for the benefit of and in the best interest of the Investment Client. The objective of voting a security in each case under this Policy is to seek to enhance the value of the security, or to reduce potential for a decline in the security’s value. This Policy does not prescribe voting requirements or specific voting considerations. Instead, this Policy provides procedures for assembling voting information and applying the informed expertise and judgment of Thornburg’s personnel on a timely basis in pursuit of the above stated voting objectives.

A further element of this Policy is that while voting on all issues presented should be considered, voting on all issues is not required by this Policy unless specifically directed or required by an Investment Client. Some issues presented for a vote of security holders may not be relevant to this Policy’s voting objectives, or it may not be reasonably possible to ascertain what effect, if any, a vote on a given issue may have on the value of an investment. Accordingly, unless an Investment Client requires Thornburg to vote all proxies with respect to securities in an Account, Thornburg may abstain from voting or decline a vote in those cases where there appears to be no relationship between the issue and the enhancement or preservation of an investment’s value.

It is also important to the pursuit of the Policy’s voting objectives that Thornburg be able to substitute its judgment in any specific situation for a presumption in this Policy where strict adherence to the presumption could reasonably be expected by Thornburg, based upon the information then available (including but not limited to media and expert commentary and outside professional advice and recommendations sought by Thornburg on the issue), to be inconsistent with the objectives of this Policy. Accordingly, Thornburg understands that it may substitute its judgment in a specific voting situation described in the preceding sentence, except where explicitly prohibited by the Investment Client or this Policy.

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Thornburg is not responsible for voting proxies relating to proxy materials that are not forwarded on a timely basis. Thornburg does not control the setting of record dates, shareholder meeting dates, or the timing of distribution of proxy materials and ballots relating to shareholder votes. In addition, administrative matters beyond Thornburg’s control may at times prevent Thornburg from voting proxies in certain non-US markets (see “Voting Restrictions in Certain Non-US Markets,” below).

ERISA Accounts

Portfolio managers should recognize, in considering proxy votes for ERISA Accounts:

(a)	Plan trustees are ordinarily responsible for voting securities held by a plan, unless the plan documents direct Thornburg or another person to vote the proxies.
(b)	If Thornburg is delegated authority to vote proxies, voting may be subject to specific written guidelines issued by the plan’s trustees or other officials.
(c)	Thornburg may not delegate authority to vote proxies, unless the plan documents or other written agreement expressly permit delegation.

Proxy Voting Coordinator

The President shall appoint a Proxy Voting Coordinator. The Proxy Voting Coordinator shall discharge the following functions in effectuating this Policy:

(a)	Collecting and assembling proxy statements and other communications pertaining to proxy voting, together with proxies or other means of voting or giving voting instructions, and providing those materials to the appropriate portfolio managers to permit timely voting of proxies;
(b)	Collecting recommendations, analysis, commentary and other information respecting subjects of proxy votes, from service providers engaged by Thornburg and other services specified by portfolio managers, and providing this information to the appropriate portfolio managers to permit evaluation of proxy voting issues;
(c)	Providing to appropriate portfolio managers any specific voting instructions from Investment Clients;
(d)	Collecting proxy votes or instructions from portfolio managers, and transmitting the votes or instructions to the appropriate custodians, brokers, nominees or other persons (which may include proxy voting services or agents engaged by Thornburg);
(e)	Accumulating Voting Results as set forth in this Policy (which may be performed by proxy voting services or agents engaged by Thornburg) and transmitting or arranging for the transmission of that information in accordance with “Communicating Votes,” below; and
(f)	Participating in the annual review of policy function as set forth in this Policy.

The Proxy Voting Coordinator may, with the President’s approval, delegate any portion or all of any one or more of these functions to one or more other individuals employed by Thornburg. Any portion or all of any one or more of these functions may be performed by service providers engaged by Thornburg.

Assembling Voting Information

The Proxy Voting Coordinator shall obtain proxy statements and other communications pertaining to proxy voting, together with proxies or other means of voting or giving voting instructions to custodians, brokers, nominees, tabulators or others in a manner to permit voting on relevant issues in a timely manner. Thornburg may engage service providers and other third parties to assemble this information, digest or abstract the information where necessary or desirable, and deliver it to the portfolio managers or others to evaluate proxy voting issues.

Portfolio Managers

The portfolio manager responsible for management of a specific Account is responsible for timely voting (or determining not to vote in appropriate cases) proxies relating to securities in the Account in accordance with this Policy. The President may exercise this authority in any instance. The portfolio manager or President may delegate voting responsibilities to one or more other portfolio managers or other individuals. Persons exercising voting authority under this paragraph are authorized to consider voting recommendations and other information and analysis from service providers (including proxy voting services) engaged by Thornburg.

Accumulating Voting Results

The Proxy Voting Coordinator is responsible for accumulating the following information as to each matter relating to a portfolio security held by any Account, considered at any shareholder meeting, and with respect to which the Account was entitled to vote:

(a)	The name of the issuer of the portfolio security;
(b)	The exchange ticker symbol of the portfolio security;
(c)	The CUSIP number for the portfolio security;

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(d)	The shareholder meeting date;
(e)	A brief identification of the matter voted on;
(g)	Whether a vote was cast on the matter;
(h)	How we cast the vote (e.g., for or against proposal, or abstain; for or withhold regarding election of directors); and
(i)	Whether we cast the vote for or against management.

Thornburg may use third party service providers to record and cumulate the foregoing information. The Proxy Voting Coordinator may, with the President’s approval, delegate any portion or all of these functions to one or more other individuals employed by Thornburg.

Resolution of Conflicts of Interest

In any case where a portfolio manager determines that a proxy vote involves an actual Conflict of Interest, and the proxy vote relates to the election of a director in an uncontested election or ratification of selection of independent accountants, the portfolio manager shall vote the proxy in accordance with the recommendation of any proxy voting service engaged by Thornburg. If no such recommendation is available, or if the proxy vote involves any other matters, the portfolio manager shall immediately refer the vote to the Investment Client (or in the case of any Investment Company as to which Thornburg is the adviser or sub-adviser and is authorized to vote proxies, to the chairman of its audit committee) for direction on the voting of the proxy or consent to vote in accordance with the portfolio manager’s recommendation. In all cases where such a vote is referred to the Investment Client, Thornburg shall disclose the Conflict of Interest to the Investment Client.

Communicating Votes

The Proxy Voting Coordinator shall (i) communicate to Thornburg’s fund accounting department proxy voting information respecting votes on portfolio securities held by Investment Clients which are Investment Companies, sufficient to permit fund accounting to prepare Form N-PX filings for the Investment Companies; and (ii) provide in writing to any Investment Client requesting information on voting of proxies with respect to portfolio securities, the information described under the caption “Accumulating Voting Results,” for the period or periods specified by the Investment Client. If the information requested by the Investment Client pertains to a period which is not readily available, or is not described above under the caption “Accumulating Voting Results,” the Proxy Voting Coordinator will confer with the Chief Compliance Officer. The Proxy Voting Coordinator may, with the President’s approval, delegate any portion or all of this function to one or more individuals employed by Thornburg. Thornburg may engage one or more service providers to facilitate timely communication of proxy votes.

Record of Voting Delegation

The Proxy Voting Coordinator shall maintain a list of all Accounts, with a specification as to each Account whether or not Thornburg is authorized to vote proxies respecting the Account’s portfolio securities.

Comment on Voting

It is the Policy of Thornburg not to comment on specific proxy votes with respect to securities in an Account in response to inquiries from persons who are not specifically authorized representatives as to the Account. Attention is directed in this regard to the Thornburg Investment Management Internal Confidentiality and Privacy Protection Policy and the Thornburg Investment Trust Policy and Procedures for Disclosure of Portfolio Securities Holdings, as in effect from time to time. Customer service representatives and other persons who may receive such inquiries should advise persons presenting the inquiries that Thornburg does not comment on proxy voting, and that as to Investment Companies for which Thornburg is required to disclose proxy votes, the information is available on the Investment Company’s website. The President may authorize comments in specific cases, in his discretion.

Joining Insurgent or Voting Committees

It is the policy of Thornburg, for itself and the Accounts, not to join any insurgent or voting committee or similar group. The President may approve participation in any such committee or group in his discretion, and shall advise the authorized representatives for the Account of any such action.

Social Issues

It is the presumption of this Policy that proxies shall not be voted on Social Issues. The President may approve voting of any security in an Account on any Social Issue.

Voting Restrictions in Certain Non-US Markets

Proxy voting in certain countries requires “share blocking.” During this blocking period, shares that will be voted at the meeting may not be sold until the meeting has taken place and the shares are returned to the Investment Clients’ custodian banks. Thornburg may choose not to vote an Investment Client’s shares in a share blocking market if Thornburg believes that the benefit to the Investment Client of being able to sell the shares during this share blocking period outweighs the benefit of exercising the vote. Thornburg will exercise its judgment in the voting condition described above while adhering to Investment Client instructions and this policy.

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Certain non-US markets require that Thornburg provide a power of attorney to give local agents authority to carry out Thornburg’s voting instructions. The duration of a power of attorney varies depending on the market. While Thornburg may seek to provide the requisite power of attorney in each instance where Thornburg is exercising its voting authority, Thornburg may at times be unable to provide the power of attorney. Failure to provide an effective power of attorney in a particular non-US market may prevent Thornburg from being able to vote an Investment Client’s shares in that market.

Annual Review of Policy Function

Pursuant to the review requirements of Rule 206(4)-7 under the Advisers Act and Rule 38a-1 under the Investment Company Act, the Chief Compliance Officer shall conduct a periodic review, no less often than annually, which shall comprise the following elements:

(a)	Review a sample of the record of voting delegation maintained by the Proxy Voting Coordinator against Voting Results to determine if Thornburg is exercising its authority to vote proxies on portfolio securities held in the selected Accounts;
(b)	Request and review voting data to determine if timely communication of proxy votes is reasonably accomplished during the period reviewed;
(c)	Meet with the Proxy Voting Coordinator to review the voting of proxies, communication of proxy votes, accumulation of Voting Results and the general functioning of this Policy;
(d)	Evaluate the performance of any proxy voting services or agents employed by Thornburg, including whether or not the service or agent maintains its independence with respect to companies the securities of which are the subject of voting recommendations, information or analysis from the service or agent; and
(e)	Prepare written reports respecting the foregoing items to the President, the Trustees of Thornburg Investment Trust, and any Investment Company Clients for which such a report is required.

Recordkeeping

The Proxy Voting Coordinator shall maintain the following records:

(i)	Copies of this Policy as from time to time revised or supplemented;
(ii)	A copy of each proxy statement that Thornburg receives regarding Investment Client securities. In maintaining a record of proxy statements referred to in this item, the Proxy Voting Coordinator may rely on obtaining copies from the Securities and Exchange Commission’s EDGAR system;
(iii)	Voting Results for each Investment Client;
(iv)	A copy of any document created by Thornburg that was material to making a decision how to vote proxies on behalf of an Investment Client or that memorializes the basis for that decision;
(v)	A copy of each written Investment Client request for information on how Thornburg voted proxies on behalf of the Investment Client, and a copy of any written response by Thornburg to any (written or oral) Investment Client request for information on how Thornburg voted proxies on behalf of the requesting Investment Client;
(vi)	Communications to Investment Clients respecting Conflicts of Interest; and

The Chief Compliance Officer shall maintain the following records:

(vii) All written reports arising from annual reviews of policy function.

The Proxy Voting Coordinator and Chief Compliance Officer shall maintain and preserve the foregoing records in an easily accessible place for a period of not less than five years (the first two years in Thornburg’s offices) from the end of the fiscal year of Thornburg during which the last entry was made on the record. The President may authorize the Proxy Voting Coordinator to engage one or more service providers to perform any portion of this recordkeeping function provided (1) the function is performed in compliance with then applicable governmental regulations, and (2) each service provider provides a written undertaking to furnish the records to Thornburg promptly upon request.

Glossary of Terms

“Account” means any discrete account or portfolio as to which Thornburg has discretionary investment authority. An Investment Client may have multiple Accounts. Each series of any Investment Company as to which Thornburg is the adviser or sub-adviser is an Account.

“Chief Compliance Officer” means the Chief Compliance Officer of Thornburg.

“Conflict of Interest” means as to any Account, any conflict between a pecuniary interest of Thornburg or any affiliate, and the duties of Thornburg to the Investment Client who is the owner of the Account.

“ERISA” means the Employee Retirement Income Security Act of 1975, as amended. Reference to an “ERISA Account” means an account for an employee benefit plan governed by ERISA.

“Investment Client” means any person with whom Thornburg has a contract to perform discretionary investment management services, including a series of an Investment Company, and for whom Thornburg is authorized by the contract or required by applicable law to vote or consider voting securities in the Investment Client’s Account.

“Investment Company” means a company registered as such under the Investment Company Act.

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“President” means the president of Thornburg, or in the event of his unavailability any individual who is a vice president and managing director of Thornburg.

“Proxy Voting Coordinator” means the individual appointed from time to time by the President to perform the proxy voting coordination functions described in this Policy.

“Social Issues” means any issue presented for a vote of holders of any security which is held in an Account, which may reasonably be interpreted as (i) unrelated in any substantial respect to the voting objectives of this Policy, and (ii) intended to promote directly or indirectly the interests of persons who are not holders of the security.

“Thornburg” means Thornburg Investment Management, Inc.

“Voting Results” means the specific information described under the caption “Accumulating Voting Results.”

As adopted July 17, 2003; revised July 20, 2005; revised April 19, 2006, revised April 21, 2008.

Transamerica Asset Management, Inc.

PROXY VOTING POLICIES AND PROCEDURES (“TAM Proxy Policy”)

I. Purpose

The TAM Proxy Policy is adopted in accordance with Rule 206(4)-6 under the Investment Advisers Act of 1940 (the “Advisers Act”) and TAM’s fiduciary and other duties to its clients. The purpose of the TAM Proxy Policy is to ensure that where TAM exercises proxy voting authority with respect to client securities it does so in the best interests of the client, and that Sub-Advisers (as defined below) to TAM clients exercise voting authority with respect to TAM client securities in accordance with policies and procedures adopted by the Sub-Advisers under Rule 206(4)-6 and approved by the TAM client.

II. TAM’s Advisory Activities

TAM acts as investment adviser to Transamerica Funds, Transamerica Income Shares, Inc., Transamerica Investors, Inc., Transamerica Partners Portfolios, Transamerica Asset Allocation Variable Funds, The Transamerica Partners Funds Group, The Transamerica Partners Funds Group II and Transamerica Series Trust (collectively, the “Funds”). For most of the investment portfolios comprising the Funds, TAM has delegated day-to-day management of the portfolio, including the authority to buy, sell, or hold securities in the portfolio and to exercise proxy voting authority with respect to those securities, to one or more investment sub-advisers, pursuant to sub-advisory agreements entered into between TAM and each sub-adviser (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”) and approved by the Board of Trustees/Directors of the client Fund (the “Board”). TAM serves as a “manager of managers” with respect to the Sub-Advisers and monitors their activities in accordance with the terms of an exemptive order granted by the Securities and Exchange Commission (Release No. IC-23379, August 5, 1998).

III. Summary of the TAM Proxy Policy

TAM delegates the responsibility to exercise voting authority with respect to securities held in the Funds’ portfolios for which one or more Sub-Advisers has been retained to the Sub-Adviser(s) for each such portfolio, in accordance with each applicable Sub-Adviser Proxy Policy (as defined below). TAM will collect and review each Sub-Adviser Proxy Policy, together with a certification from the Sub-Adviser that the Sub-Adviser Proxy Policy complies with Rule 206(4)-6, and submit these materials to the Board for approval. In the event that TAM is called upon to exercise voting authority with respect to client securities, TAM generally will vote in accordance with the recommendation of Institutional Shareholder Services, Inc. (“ISS”) or another qualified independent third party, except that if TAM believes the recommendation would not be in the best interest of the relevant portfolio and its shareholders, TAM will consult the Board of the relevant Fund (or a Committee of the Board) and vote in accordance with instructions from the Board or Committee.

IV. Delegation of Proxy Voting Authority to Sub-Advisers

TAM delegates to each Sub-Adviser the responsibility to exercise voting authority with respect to securities held by the portfolio(s), or portion thereof, managed by the Sub-Adviser. Each Sub-Adviser is responsible for monitoring, evaluating and voting on all proxy matters with regard to investments the Sub-Adviser manages for the Funds in accordance with the Sub-Adviser’s proxy voting policies and procedures adopted to comply with Rule 206(4)-6 (each, a “Sub-Adviser Proxy Policy” and collectively, the “Sub-Adviser Proxy Policies”).

V. Administration, Review and Submission to Board of Sub-Adviser Proxy Policies

A. Appointment of Proxy Administrator

        TAM will appoint an officer to be responsible for collecting and reviewing the Sub-Adviser Proxy Policies and carrying out the other duties set forth herein (the “Proxy Administrator”).

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B. Initial Review

               1. The Proxy Administrator will collect from each Sub-Adviser:

                    a) its Sub-Adviser Proxy Policy;

                    b) a certification from the Sub-Adviser that (i) its Sub-Adviser Proxy Policy is reasonably designed to ensure that the Sub-Adviser votes client securities in the best interest of clients, and that the Sub-Adviser Proxy Policy includes an explanation of how the Sub-Adviser addresses material conflicts that may arise between the Sub-Adviser’s interests and those of its clients, (ii) the Sub-Adviser Proxy Policy has been adopted in accordance with Rule 206(4)-6, and (iii) the Sub-Adviser Proxy Policy complies the terms of Rule 206(4)-6; and

                    c) a summary of the Sub-Adviser Proxy Policy suitable for inclusion in the client Fund’s registration statement, in compliance with Item 13(f) of Form N-1A, and a certification to that effect.

               2. The Proxy Administrator will review each Sub-Adviser Proxy Policy with a view to TAM making a recommendation to the Board. In conducting its review, TAM recognizes that the Securities and Exchange Commission has not adopted specific policies or procedures for advisers, or provided a list of approved procedures, but has left advisers the flexibility to craft policies and procedures suitable to their business and the nature of the conflicts they may face. As a consequence, Sub-Adviser Proxy Policies are likely to differ widely. Accordingly, the Proxy Administrator’s review of the Sub-Adviser Proxy Policies will be limited to addressing the following matters:

                    a) whether the Sub-Adviser Proxy Policy provides that the Sub-Adviser votes solely in the best interests of clients;

                    b) whether the Sub-Adviser Proxy Policy includes a description of how the Sub-Adviser addresses material conflicts of interest that may arise between the Sub-Adviser or its affiliates and its clients; and

                    c) whether the Sub-Adviser Proxy Policy includes both general policies and procedures as well as policies with respect to specific types of issues (for this purpose general policies include any delegation to a third party, policies relating to matters that may substantially affect the rights or privileges of security holders, and policies regarding the extent of weight given to the view of the portfolio company management; specific issues include corporate governance matters, changes to capital structure, stock option plans and other management compensation issues, and social corporate responsibility issues, among others).

               3. The Proxy Administrator will review the certification provided pursuant to paragraph 1(b) above for completeness, and will review the summary provided pursuant to paragraph 1(c) above for compliance with the requirements of Form N-1A.

               4. TAM will provide to the Board (or a Board Committee), the materials referred to in Section V.B.1. and a recommendation pursuant to the Proxy Administrator’s review of the Sub-Adviser Proxy Policy provided for in Section V.B.2.

               5. TAM will follow the same procedure in connection with the engagement of any new Sub-Adviser.

C. Subsequent Review

        TAM will request that each Sub-Adviser provide TAM with prompt notice of any material change in its Sub-Adviser Proxy Policy. TAM will report any such changes at the next quarterly Board meeting of the applicable Fund. No less frequently than once each calendar year, TAM will request that each Sub-Adviser provide TAM with its current Sub-Adviser Proxy Policy, or certify that there have been no material changes to its Sub-Adviser Proxy Policy or that all material changes have been previously provided for review by TAM and approval by the relevant Board(s), and that the Sub-Adviser Proxy Policy continues to comply with Rule 206(4)-6.

D. Record of Proxy Votes Exercised by Sub-Adviser

        The Proxy Administrator, or a third party as permitted by regulations issued by the Securities and Exchange Commission (such as ISS), will maintain a record of any proxy votes (including the information called for in Items 1(a) through (i) of Form N-PX) exercised by the Sub-Adviser on behalf of a portfolio of the Funds. The Proxy Administrator, or a third party as permitted by regulations issued by the Securities and Exchange Commission (such as ISS), will maintain a complete proxy voting record with respect to each Fund. If TAM utilizes the services of a third party for maintaining the records above specified, TAM shall obtain an undertaking from the third party that it will provide the records promptly upon request.

VI. TAM Exercise of Proxy Voting Authority

A. Use of Independent Third Party

        If TAM is called upon to exercise voting authority on behalf of a Fund client, TAM will vote in accordance with the recommendations of ISS or another qualified independent third party (the “Independent Third Party”), provided that TAM agrees that the voting recommendation issued by the Independent Third Party reflects the best interests of the relevant portfolio and its shareholders.

B. Conflict with View of Independent Third Party

        If, in its review of the Independent Third Party recommendation, TAM believes that the recommendation is not in the best interests of the Fund client, TAM will submit to the Board (or a Board Committee) its reasons for disagreeing with the Independent Third Party, as well as full disclosure of any conflict of interest between TAM or its affiliates and the Fund in connection with the vote, and seek consent of the Board (or Committee) with respect to TAM’s proposed vote.

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C. Asset Allocation Portfolios

        For any asset allocation portfolio managed by TAM and operated, in whole or in part, as a “fund of funds”, TAM will vote proxies in accordance with the recommendations of the Board(s) of the Fund(s). If any such asset allocation portfolio holds shares of a registered investment company that is not a portfolio of a Fund, TAM will seek Board (or Committee) consent with respect to TAM’s proposed vote in accordance with the provisions of Section VI.B.

VII. Conflicts of Interest Between TAM or Its Affiliates and the Funds

The TAM Proxy Voting Policy addresses material conflicts that may arise between TAM or its affiliates and the Funds by, in every case where TAM exercises voting discretion, either (i) providing for voting in accordance with the recommendation of the Independent Third Party or Board(s); or (ii) obtaining the consent of the Board (or a Board Committee) with full disclosure of the conflict.

VIII. Recordkeeping

A. Records Generally Maintained

        In accordance with Rule 204-2(c)(2) under the Advisers Act, the Proxy Administrator shall cause TAM to maintain the following records:

               1. the TAM Proxy Voting Policy; and

               2. records of Fund client requests for TAM proxy voting information.

B. Records for TAM Exercise of Proxy Voting Authority

        In accordance with Rule 204-2(c)(2) under the Advisers Act, if TAM exercises proxy voting authority pursuant to Section VI above, TAM, or a third party as permitted by regulations issued by the Securities and Exchange Commission (such as ISS), shall make and maintain the following records:

               1. proxy statements received regarding matters it has voted on behalf of Fund clients;

               2. records of votes cast by TAM; and

               3. copies of any documents created by TAM that were material to deciding how to vote proxies on behalf of Fund clients or that memorialize the basis for such a decision.

If TAM utilizes the services of a third party for maintaining the records above specified, TAM shall obtain an undertaking from the third party that it will provide the records promptly upon request.

C. Records Pertaining to Sub-Adviser Proxy Policies

                    The Proxy Administrator will cause TAM and/or a third party as permitted by regulations issued by the Securities and Exchange Commission (such as ISS), to maintain the following records:

               1. each Sub-Adviser Proxy Policy; and

               2. the materials delineated in Article V above.

        If TAM utilizes the services of a third party for maintaining the records above specified, TAM shall obtain an undertaking from the third party that it will provide the records promptly upon request.

D. Time Periods for Record Retention

        All books and records required to maintain under this Section VIII will be maintained in an easily accessible place for a period of not less than five years from the end of the fiscal year during which the last entry was made on the record, the first two years in an appropriate office of TAM.

IX. Provision of TAM Proxy Policy to Fund Clients

        The Proxy Administrator will provide each Fund’s Board (or a Board Committee) a copy of the TAM Proxy Policy at least once each calendar year.

Last Revised: July 1, 2008

Transamerica Investment Management, LLC

PROXY VOTING POLICY

INTRODUCTION

Normally, clients for which Transamerica Investment Management, LLC (“TIM”) has full discretionary investment authority expect TIM to vote proxies in accordance with TIM’s Proxy Voting Policy (the “Policy”). As such, TIM will vote on behalf of all accounts for which it has discretionary authority unless clients notify TIM in writing that they have retained the authority to vote their own proxies. Clients may also ask TIM to vote their proxies in accordance with specific Client Proxy guidelines.

STATEMENT OF POLICY

It is the policy of TIM to vote proxies in the best interest of its clients at all times.

TIM has proxy voting policy guidelines (the “Guidelines”) regarding certain issues that may come before shareholders from time to time. These Guidelines provide a roadmap for arriving at voting decisions and are not meant to be exhaustive of all issues that may be raised in any or all proxy ballots. The Guidelines are attached to this Policy as Appendix A.

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PROXY COMMITTEE

In order to implement and monitor this Policy, TIM shall establish a Proxy Committee (the “Committee”), which will have responsibility for review of proxies voted by or to be voted by TIM, as well as to resolve issues which may arise in the process of voting proxies.

The Committee shall meet at a minimum annually and on an as needed basis. It shall not be required that the Committee members meet in person; in fact, it is contemplated that certain Committee members will take part in meetings via teleconference. The Committee shall consist of at least one Portfolio Manager, a member of the Legal/Compliance department, and other staff members of TIM as may be designated from time to time. Committee members may select designees in the event that they are unable to convene with the Committee.

It shall be the Committee’s responsibility to ensure that proxy votes are made in accordance with the Policy. Issues shall be raised to the Committee when needed and as appropriate to effectively carry out TIM’s proxy decisions. When applicable, the Committee shall review written materials pertinent to the vote at hand and shall hear verbal opinions from relevant portfolio managers and/or analysts as needed to fully consider the investment merits of the vote. Committee decisions and a record of Committee meetings shall be recorded and maintained by the Legal/Compliance department.

USE OF INDEPENDENT THIRD PARTY

TIM will maintain the services of a qualified independent third party (the “Independent Third Party”) to provide guidance on proxy voting issues. The Independent Third Party selected by TIM is RiskMetrics Group. TIM will consider the research provided by the Independent Third Party when making voting decisions on proxy issues, however, the final determination on voting rests with TIM.

CONFLICTS OF INTEREST BETWEEN TIM AND CLIENTS

TIM recognizes the potential for material conflicts that may arise between its own interests and those of the Clients. To address these concerns, TIM will take one of the following steps to avoid any impropriety or the appearance of impropriety: a) Vote in accordance with the recommendation of the Independent Third Party; or b) Obtain the consent(s) of the Client(s) whose accounts are involved in the conflict.

PROVISION OF TIM PROXY POLICY TO CLIENTS

TIM will make available to all Clients a copy of its Policy by maintaining a current version of the Policy on its website (www.timllc.com). Also, a copy of the Policy will be mailed to any Client at any time upon request.

The following is a concise summary of TIM’s proxy voting policy guidelines.

1. Auditors

Vote FOR proposals to ratify auditors, unless any of the following apply:

• An auditor has a financial interest in or association with the company, and is therefore not independent

• Fees for non-audit services are excessive, or

• There is reason to believe that the independent auditor has rendered an opinion that is neither accurate nor indicative of the company’s financial position.

2. Board of Directors

Voting on Director Nominees in Uncontested Elections

Votes on director nominees should be made on a CASE-BY-CASE basis, examining the following factors: independence of the board and key board committees, attendance at board meetings, corporate governance provisions and takeover activity, long-term company performance, responsiveness to shareholder proposals, any egregious board actions, and any excessive non-audit fees or other potential auditor conflicts.

Classification/Declassification of the Board

Vote AGAINST proposals to classify the board.

Vote FOR proposals to repeal classified boards and to elect all directors annually.

Independent Chairman (Separate Chairman/CEO)

Vote on a CASE-BY-CASE basis shareholder proposals requiring that the positions of chairman and CEO be held separately. Because some companies have governance structures in place that counterbalance a combined position, certain factors should be taken into account in determining whether the proposal warrants support. These factors include the presence of a lead director, board and committee independence, governance guidelines, company performance, and annual review by outside directors of CEO pay.

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Majority of Independent Directors/Establishment of Committees

Vote FOR shareholder proposals asking that a majority or more of directors be independent unless the board composition already meets the proposed threshold by TIM’s definition of independence.

Vote FOR shareholder proposals asking that board audit, compensation, and/or nominating committees be composed exclusively of independent directors if they currently do not meet that standard.

3. Shareholder Rights

Shareholder Ability to Act by Written Consent

Vote AGAINST proposals to restrict or prohibit shareholder ability to take action by written consent.

Vote FOR proposals to allow or make easier shareholder action by written consent.

Shareholder Ability to Call Special Meetings

Vote AGAINST proposals to restrict or prohibit shareholder ability to call special meetings.

Vote FOR proposals that remove restrictions on the right of shareholders to act independently of management.

Supermajority Vote Requirements

Vote AGAINST proposals to require a supermajority shareholder vote.

Vote FOR proposals to lower supermajority vote requirements.

Cumulative Voting

Vote AGAINST proposals to eliminate cumulative voting.

Vote proposals to restore or permit cumulative voting on a CASE-BY-CASE basis relative to the company’s other governance provisions.

Confidential Voting

Vote FOR shareholder proposals requesting that corporations adopt confidential voting, use independent vote tabulators and use independent inspectors of election, as long as the proposal includes a provision for proxy contests as follows: In the case of a contested election, management should be permitted to request that the dissident group honor its confidential voting policy. If the dissidents agree, the policy remains in place. If the dissidents will not agree, the confidential voting policy is waived.

Vote FOR management proposals to adopt confidential voting.

4. Proxy Contests

Voting for Director Nominees in Contested Elections

Votes in a contested election of directors must be evaluated on a CASE-BY-CASE basis, considering the factors that include the long-term financial performance, management’s track record, qualifications of director nominees (both slates), and an evaluation of what each side is offering shareholders.

5. Poison Pills

Vote FOR shareholder proposals that ask a company to submit its poison pill for shareholder ratification. Review on a CASE-BY-CASE basis shareholder proposals to redeem a company’s poison pill and management proposals to ratify a poison pill.

6. Mergers and Corporate Restructurings

Vote CASE-BY-CASE on mergers and corporate restructurings based on such features as the fairness opinion, pricing, strategic rationale, and the negotiating process.

7. Reincorporation Proposals

Proposals to change a company’s state of incorporation should be evaluated on a CASE-BY-CASE basis, giving consideration to both financial and corporate governance concerns, including the reasons for reincorporating, a comparison of the governance provisions, and a comparison of the jurisdictional laws. Vote FOR reincorporation when the economic factors outweigh any neutral or negative governance changes.

8. Capital Structure

Common Stock Authorization

Votes on proposals to increase the number of shares of common stock authorized for issuance are determined on a CASE-BY-CASE basis.

Vote AGAINST proposals at companies with dual-Class Capital structures to increase the number of authorized shares of the class of stock that has superior voting rights.

Vote FOR proposals to approve increases beyond the allowable increase when a company’s shares are in danger of being delisted or if a company’s ability to continue to operate as a going concern is uncertain.

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Dual-class Stock

Vote AGAINST proposals to create a new class of common stock with superior voting rights.

Vote FOR proposals to create a new class of nonvoting or subvoting common stock if:

It is intended for financing purposes with minimal or no dilution to current shareholders

It is not designed to preserve the voting power of an insider or significant shareholder

9. Executive and Director Compensation

Votes with respect to compensation plans should be determined on a CASE-BY-CASE basis. TIM reviews Executive and Director compensation plans (including broad-based option plans) in the context of the transfer of shareholder wealth. This review encompasses not only a comparison of a plan relative to peer companies, but also on an absolute basis, considering the cost of the plan vs. the operating income and overall profitability of the firm in question.

Vote AGAINST equity plans that explicitly permit repricing or where the company has a history of repricing without shareholder approval.

Management Proposals Seeking Approval to Reprice Options

Vote AGAINST proposals by management seeking approval to reprice options.

Employee Stock Purchase Plans

Votes on employee stock purchase plans should be determined on a CASE-BY-CASE basis.

Vote FOR employee stock purchase plans where all of the following apply:

• Purchase price is at least 85 percent of fair market value

• Offering period is 27 months or less, and

• Potential voting power dilution (VPD) is ten percent or less.

Vote AGAINST employee stock purchase plans where any of the opposite conditions obtain.

Shareholder Proposals on Compensation

Vote on a CASE-BY-CASE basis for all other shareholder proposals regarding executive and director pay, taking into account company performance, pay level versus peers, pay level versus industry, and long term corporate outlook.

10. Social and Environmental Issues

These issues cover a wide range of topics, including consumer and public safety, environment and energy, general corporate issues, labor standards and human rights, military business, and workplace diversity.

In general, vote CASE-BY-CASE. While a wide variety of factors goes into each analysis, the overall principal guiding all vote recommendations focuses on how the proposal will enhance the economic value of the company.

UBS Global Asset Management Americas Inc.

GLOBAL CORPORATE GOVERNANCE PHILOSOPHY AND PROXY VOTING GUIDELINES AND POLICY

Policy Summary

Underlying our voting and corporate governance policies we have three fundamental objectives:

1. We seek to act in the best financial interests of our clients to protect and enhance the long-term value of their investments.

2. In order to do this effectively, we aim to utilize the full weight of our clients shareholdings in making our views felt.

3. As investors, we have a strong commercial interest in ensuring that the companies in which we invest are successful. We actively pursue this interest by promoting best practice in the boardroom. To achieve these objectives, we have implemented this Policy, which we believe is reasonably designed to guide our exercise of voting rights and the taking of other appropriate actions, within our ability, and to support and encourage sound corporate governance practice. This Policy is being implemented globally to harmonize our philosophies across UBS offices worldwide and thereby maximize our ability to influence the companies we invest in. However, this Policy is also supplemented by the UBS Local Proxy and Corporate Governance Guidelines to permit individual regions or countries within UBS the flexibility to vote or take other actions consistent with their local laws or standards where necessary. This policy helps to maximize the economic value of our clients investments by establishing proxy voting standards that conform with UBS’ philosophy of good corporate governance.

Risks Addressed by this Policy

The policy is designed to address the following risks:

• Failure to provided required disclosures for investment advisers and registered investment companies

• Failure to vote proxies in best interest of clients and funds

• Failure to identify and address conflicts of interest

• Failure to provide adequate oversight of third party service providers

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TABLE OF CONTENTS

Global Voting and Corporate Governance Policy

A. General Corporate Governance Benchmarks

B. Proxy Voting Guidelines. Macro Rationales

C. Proxy Voting Disclosure Guidelines

D. Proxy Voting Conflict Guidelines

E. Special Disclosure Guidelines for Registered Investment Companies

F. Documentation

G. Compliance Dates

H. Other Policies

I. Disclosures

GLOBAL PROXY VOTING AND CORPORATE GOVERNANCE POLICY

Philosophy

Our philosophy, guidelines and policy are based on our active investment style and structure whereby we have detailed knowledge of the investments we make on behalf of our clients and therefore are in a position to judge what is in the best interests of our clients as shareholders. We believe voting rights have economic value and must be treated accordingly. Proxy votes that impact the economic value of client investments involve the exercise of fiduciary responsibility. Good corporate governance should, in the long term, lead toward both better corporate performance and improved shareholder value. Thus, we expect board members of companies we have invested in (the ..company. or .companies.) to act in the service of the shareholders, view themselves as stewards of the financial assets of the company, exercise good judgment and practice diligent oversight with the management of the company.

A. General Corporate Governance Benchmarks UBS Global Asset Management (US) Inc. and UBS Global Asset Management (Americas) Inc. (collectively, .UBS Global AM.) will evaluate issues that may have an impact on the economic value of client investments during the time period it expects to hold the investment. While there is no absolute set of rules that determine appropriate governance under all circumstances and no set of rules will guarantee ethical behavior, there are certain benchmarks, which, if substantial progress is made toward, give evidence of good corporate governance. Therefore, we will generally exercise voting rights on behalf of clients in accordance with this policy.

Principle 1: Independence of Board from Company Management Guidelines:

• Board exercises judgment independently of management.

• Separate Chairman and Chief Executive.

• Board has access to senior management members.

• Board is comprised of a significant number of independent outsiders.

• Outside directors meet independently.

• CEO performance standards are in place.

• CEO performance is reviewed annually by the full board.

• CEO succession plan is in place.

• Board involvement in ratifying major strategic initiatives.

• Compensation, audit and nominating committees are led by a majority of outside directors.

Principle 2: Quality of Board Membership Guidelines:

• Board determines necessary board member skills, knowledge and experience.

• Board conducts the screening and selection process for new directors.

• Shareholders should have the ability to nominate directors.

• Directors whose present job responsibilities change are reviewed as to the appropriateness of continued directorship.

• Directors are reviewed every 3-5 years to determine appropriateness of continued directorship.

• Board meets regularly (at least four times annually).

Principle 3: Appropriate Management of Change in Control Guidelines:

• Protocols should ensure that all bid approaches and material proposals by management are brought forward for board consideration.

• Any contracts or structures, which impose financial constraints on changes in control, should require prior shareholder approval.

• Employment contracts should not entrench management.

• Management should not receive substantial rewards when employment contracts are terminated for performance reasons.

Principle 4: Remuneration Policies are Aligned with Shareholder Interests Guidelines:

• Executive remuneration should be commensurate with responsibilities and performance.

• Incentive schemes should align management with shareholder objectives.

• Employment policies should encourage significant shareholding by management and board members.

• Incentive rewards should be proportionate to the successful achievement of predetermined financial targets.

• Long-term incentives should be linked to transparent long-term performance criteria.

• Dilution of shareholders. interests by share issuance arising from egregious employee share schemes and management incentives should be limited by shareholder resolution.

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Principle 5: Auditors are Independent Guidelines:

• Auditors are approved by shareholders at the annual meeting.

• Audit, consulting and other fees to the auditor are explicitly disclosed.

• The Audit Committee should affirm the integrity of the audit has not been compromised by other services provided by the auditor firm.

• Periodic (every 5 years) tender of the audit firm or audit partner.

B. Proxy Voting Guidelines – Macro Rationales Macro Rationales are used to explain why we vote on each proxy issue. The Macro Rationales reflect our guidelines enabling voting consistency between offices yet allowing for flexibility so the local office can reflect specific knowledge of the company as it relates to a proposal.

1. General Guidelines

a. When our view of the issuer’s management is favorable, we generally support current management initiatives. When our view is that changes to the management structure would probably increase shareholder value, we may not support existing management proposals.

b. If management’s performance has been questionable we may abstain or vote against specific proxy proposals.

c. Where there is a clear conflict between management and shareholder interests, even in those cases where management has been doing a good job, we may elect to vote against management.

d. In general, we oppose proposals, which in our view, act to entrench management.

e. In some instances, even though we strongly support management, there are some corporate governance issues that, in spite of management objections, we believe should be subject to shareholder approval.

f. We will vote in favor of shareholder resolutions for confidential voting.

2. Board of Directors and Auditors

a. Unless our objection to management’s recommendation is strenuous, if we believe auditors to be competent and professional, we support continuity in the appointed auditing firm subject to regular review.

b. We generally vote for proposals that seek to fix the size of the board and/or require shareholder approval to alter the size of the board and that allow shareholders to remove directors with or without cause.

c. We generally vote for proposals that permit shareholders to act by written consent and/or give the right to shareholders to call a special meeting.

d. We generally oppose proposals to limit or restrict shareholder ability to call special meetings.

e. We will vote for separation of Chairman and CEO if we believe it will lead to better company management, otherwise, we will support an Outside lead director board structure.

3. Compensation

a. We will not try to micro-manage compensation schemes, however, we believe remuneration should not be excessive, and we will not support compensation plans that are poorly structured or otherwise egregious.

b. Senior management compensation should be set by independent directors according to industry standards, taking advice from benefits consultants where appropriate.

c. All senior management and board compensation should be disclosed within annual financial statements, including the value of fringe benefits, company pension contributions, deferred compensation and any company loans.

d. We may vote against a compensation or incentive program if it is not adequately tied to a company’s fundamental financial performance; is vague; is not in line with market practices; allows for option re-pricing; does not have adequate performance hurdles; or is highly dilutive.

e. Where company and management’s performance has been poor, we may object to the issuance of additional shares for option purposes such that management is rewarded for poor performance or further entrenches its position.

f. Given the increased level of responsibility and oversight required of directors, it is reasonable to expect that compensation should increase commensurably. We consider that there should be an appropriate balance between fixed and variable elements of compensation and between short and long term incentives.

4. Governance Provisions

a. We believe that votes at company meetings should be determined on the basis of one share one vote. We will vote against cumulative voting proposals.

b. We believe that .poison pill. proposals, which dilute an issuer’s stock when triggered by particular events, such as take over bids or buy-outs, should be voted on by the shareholders and will support attempts to bring them before the shareholders.

c. Any substantial new share issuance should require prior shareholder approval.

d. We believe proposals that authorize the issuance of new stock without defined terms or conditions and are intended to thwart a take-over or restrict effective control by shareholders should be discouraged.

e. We will support directives to increase the independence of the board of directors when we believe that the measures will improve shareholder value.

f. We generally do not oppose management’s recommendation to implement a staggered board and generally support the regular re-election of directors on a rotational basis as it may provide some continuity of oversight.

g. We will support proposals that enable shareholders to directly nominate directors.

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5. Capital Structure and Corporate Restructuring

a. It is difficult to direct where a company should incorporate, however, in instances where a move is motivated solely to entrench management or restrict effective corporate governance, we will vote accordingly.

b. In general we will oppose management initiatives to create dual classes of stock, which serves to insulate company management from shareholder opinion and action. We support shareholder proposals to eliminate dual class schemes.

6. Mergers, Tender Offers and Proxy Contests

a. Based on our analysis and research we will support proposals that increase shareholder value and vote against proposals that do not.

7. Social, Environmental, Political and Cultural

a. Depending on the situation, we do not typically vote to prohibit a company from doing business anywhere in the world.

b. There are occasional issues, we support, that encourage management to make changes or adopt more constructive policies with respect to social, environmental, political and other special interest issues, but in many cases we believe that the shareholder proposal may be too binding or restrict management’s ability to find an optimal solution. While we wish to remain sensitive to these issues, we believe there are better ways to resolve them than through a proxy proposal. We prefer to address these issues through engagement.

c. Unless directed by clients to vote in favor of social, environmental, political and other special interest proposals, we are generally opposed to special interest proposals that involve an economic cost to the company or that restrict the freedom of management to operate in the best interest of the company and its shareholders.

8. Administrative and Operations

a. Occasionally, stockholder proposals, such as asking for reports and donations to the poor, are presented in a way that appears to be honest attempts at bringing up a worthwhile issue. Nevertheless, judgment must be exercised with care, as we do not expect our shareholder companies to be charitable institutions.

b. We are sympathetic to shareholders who are long-term holders of a company’s stock, who desire to make concise statements about the long-term operations of the company in the proxy statement. However, because regulatory agencies do not require such actions, we may abstain unless we believe there are compelling reasons to vote for or against.

9. Miscellaneous

a. Where a client has given specific direction as to how to exercise voting rights on its behalf, we will vote in accordance with a client’s direction.

b. Where we have determined that the voting of a particular proxy is of limited benefit to clients or where the costs of voting a proxy outweigh the benefit to clients, we may abstain or choose not to vote. Among others, such costs may include the cost of translating a proxy, a requirement to vote in person at a shareholders meeting or if the process of voting restricts our ability to sell for a period of time (an opportunity cost).

c. For holdings managed pursuant to quantitative, index or index-like strategies, we may delegate the authority to exercise voting rights for such strategies to an independent proxy voting and research service with the direction that the votes be exercised in accordance with this Policy. If such holdings are also held in an actively managed strategy, we will exercise the voting rights for the passive holdings according to the active strategy.

d. In certain instances when we do not have enough information we may choose to abstain or vote against a particular Proposal.

C. Proxy Voting Disclosure Guidelines

• UBS Global AM will disclose to clients, as required by the Investment Advisers Act of 1940, how they may obtain information about how we voted with respect to their securities. This disclosure may be made on Form ADV.

• UBS Global AM will disclose to clients, as required by the Investment Advisers Act of 1940, these procedures and will furnish a copy of these procedures to any client upon request. This disclosure may be made on Form ADV.

• Upon request or as required by law or regulation, UBS Global AM will disclose to a client or a client’s fiduciaries, the manner in which we exercised voting rights on behalf of the client.

• Upon request, we will inform a client of our intended vote. Note, however, in some cases, because of the controversial nature of a particular proxy, our intended vote may not be available until just prior to the deadline. If the request involves a conflict due to the client’s relationship with the company that has issued the proxy, the Legal and Compliance Department should be contacted immediately to ensure adherence to UBS Global AM Corporate Governance Principles. (See Proxy Voting Conflict Guidelines below.)

• Other than as described herein, we will not disclose our voting intentions or make public statements to any third party (except electronically to our proxy vote processor or regulatory agencies) including but not limited to proxy solicitors, nonclients, the media, or other UBS divisions, but we may inform such parties of the provisions of our Policy. We may communicate with other shareholders regarding a specific proposal but will not disclose our voting intentions or agree to vote in concert with another shareholder without approval from the Chairman of the Global Corporate Governance Committee and regional Legal and Compliance representative.

• Any employee, officer or director of UBS Global AM receiving an inquiry directly from a company will notify the appropriate industry analyst and persons responsible for voting the company’s proxies.

• Proxy solicitors and company agents will not be provided with either our votes or the number of shares we own in a particular company.

• In response to a proxy solicitor or company agent, we will acknowledge receipt of the proxy materials, inform them of our intent to vote or that we have voted, but not the result of the vote itself.

• We may inform the company (not their agent) where we have decided to vote against any material resolution at their company.

• The Chairman of the Global Corporate Governance Committee and the applicable Chair of the Local Corporate Governance Committee must approve exceptions to this disclosure policy.

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Nothing in this policy should be interpreted as to prevent dialogue with the company and its advisers by the industry analyst, proxy voting delegate or other appropriate senior investment personnel when a company approaches us to discuss governance issues or resolutions they wish to include in their proxy statement.

D. Proxy Voting Conflict Guidelines

In addition to the Proxy Voting Disclosure Guidelines above, UBS Global AM has implemented the following guidelines to address conflicts of interests that arise in connection with our exercise of voting rights on behalf of clients:

• Under no circumstances will general business, sales or marketing issues influence our proxy votes.

• UBS Global AM and its affiliates engaged in banking, broker-dealer and investment banking activities (Affiliates) have policies in place prohibiting the sharing of certain sensitive information. These policies prohibit our personnel from disclosing information regarding our voting intentions to any Affiliate. Any of our personnel involved in the proxy voting process who are contacted by an Affiliate regarding the manner in which we intend to vote on a specific issue, must terminate the contact and notify the Legal and Compliance Department immediately. [Note: Legal and Compliance personnel may have contact with their counterparts working for an Affiliate on matters involving information barriers.] In the event of any issue arising in relation to Affiliates, the Chair of the Global Corporate Governance Committee must be advised, who will in turn advise the Chief Risk Officer.

E. Special Disclosure Guidelines for Registered Investment Company Clients

1. Registration Statement (Open-End and Closed-End Funds) Management is responsible for ensuring the following:

• That these procedures, which are the procedures used by the investment adviser on the Funds’ behalf, are described in the Statement of Additional Information (SAI). The procedures may be described in the SAI or attached as an exhibit to the registration statement.

• That the SAI disclosure includes the procedures that are used when a vote presents a conflict between the interests of Fund shareholders, on the one hand; and those of the Funds’ investment adviser, principal underwriter or any affiliated person of the Fund, its investment adviser or principal underwriter, on the other.

• That the SAI disclosure states that information regarding how the Fund voted proxies during the most recent 12-month period ended June 30 is available (i) without charge, upon request, by calling a specified toll-free (or collect) telephone number; or on or through the Fund’s website, or both; and (ii) on the Commission’s website. If a request for the proxy voting record is received, the Fund must comply within three business days by first class mail. If website disclosure is elected, Form N-PX must be posted as soon as reasonably practicable after filing the report with the Commission, and must remain available on the website as long as the Fund discloses that it is available on the website.

2. Shareholder Annual and Semi-Annual Report (Open-End and Closed-End Funds)

Management is responsible for ensuring the following:

• That each Fund’s shareholder report contain a statement that a description of these procedures is available (i) without charge, upon request, by calling a toll-free or collect telephone number; (ii) on the Fund’s website, if applicable; and (iii) on the Commission’s website. If a request for the proxy voting record is received, the Fund must comply within three business days by first class mail.

• That the report contain a statement that information regarding how the Fund voted proxies during the most recent 12-month period ended June 30 is available (i) without charge, upon request, by calling a specified toll-free (or collect) telephone number; or on or through the Fund’s website, or both; and (ii) on the Commission’s website. If a request for the proxy voting record is received, the Fund must comply within three business days by first class mail. If website disclosure is elected, Form N-PX must be posted as soon as reasonably practicable after filing the report with the Commission, and must remain available on the website as long as the Fund discloses that it its available on the website.

3. Form N-CSR (Closed-End Fund Annual Reports Only)

Management is responsible for ensuring the following:

• That these procedures are described in Form N-CSR. In lieu of describing the procedures, a copy of these procedures may simply be included with the filing. However, the Sac’s preference is that the procedures be included directly in Form N-CSR and not attached as an exhibit to the N-CSR filing.

• That the N-CSR disclosure includes the procedures that are used when a vote presents a conflict between the interests of Fund shareholders, on the one hand, and those of the Funds. investment adviser, principal underwriter or any affiliated person of the Fund, its investment adviser or principal underwriter, on the other.

4. Form N-PX (Open-End and Closed-End Funds)

Management is responsible for ensuring the following:

• That each Fund files its complete proxy voting record on Form N-PX for the 12 month period ended June 30 by no later than August 31 of each year.

• Fund management is responsible for reporting to the Funds. Chief Compliance Officer any material issues that arise in connection with the voting of Fund proxies or the preparation, review and filing of the Funds’ Form N-PX.

5. Oversight of Disclosure

The Funds Chief Compliance Officer shall be responsible for ensuring that the required disclosures listed in these procedures are implemented and complied with. The Funds Chief Compliance Officer shall recommend to each Fund’s Board any changes to these policies and procedures that he or she deems necessary or appropriate to ensure the Funds’ Compliance with relevant federal securities laws.

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Responsible Parties

The following parties will be responsible for implementing and enforcing this policy:

The Chief Compliance Officer and his/her designees

Documentation

Monitoring and testing of this policy will be documented in the following ways:

• Annual review by the Funds’ and UBS Global AM’s Chief Compliance Officer of the effectiveness of these procedures

• Annual Report of Funds’ Chief Compliance Officer regarding the effectiveness of these procedures

• Periodic review of any proxy service vendor by the Chief Compliance Officer

• Periodic review of proxy votes by the Proxy Voting Committee

Compliance Dates

The following compliance dates should be added to the Compliance Calendar:

• File Form N-PX by August 31 for each registered investment company client

• Annual review by the Funds’ and UBS Global AM’s Chief Compliance Officer of the effectiveness of these procedures

• Annual Report of Funds’ Chief Compliance Officer regarding the effectiveness of these procedures

• Form N-CSR, Shareholder Annual and Semi-Annual Reports, and annual updates to Fund registration statements as applicable

• Periodic review of any proxy service vendor by the Chief Compliance Officer

• Periodic review of proxy votes by the Proxy Voting Committee

Other Policies

Other policies that this policy may affect include:

• Recordkeeping Policy

• Affiliated Transactions Policy

• Code of Ethics

• Supervision of Service Providers Policy

Other policies that may affect this policy include:

• Recordkeeping Policy

• Affiliated Transactions Policy

• Code of Ethics

• Supervision of Service Providers Policy

Wellington Management Company, LLP

Introduction Wellington Management Company, LLP (“Wellington Management”) has adopted and implemented policies and procedures that it believes are reasonably designed to ensure that proxies are voted in the best economic interests of its clients around the world.

          Wellington Management’s Proxy Voting Guidelines (the Guidelines), which are incorporated by reference to these Global Proxy Policies and Procedures, set forth the sets of guidelines that Wellington Management uses in voting specific proposals presented by the boards of directors or shareholders of companies whose securities are held in client portfolios for which Wellington Management has voting discretion. While the Guidelines set forth general sets of guidelines for voting proxies, it should be noted that these are guidelines and not rigid rules. Many of the Guidelines are accompanied by explanatory language that describes criteria that may affect our vote decision. The criteria as described are to be read as part of the guideline, and votes cast according to the criteria will be considered within guidelines. In some circumstances, the merits of a particular proposal may cause us to enter a vote that differs from the Guidelines.

Statement of Policies As a matter of policy, Wellington Management:

          1. Takes responsibility for voting client proxies only upon a client’s written request.

          2. Votes all proxies in the best interests of its clients as shareholders, i.e., to maximize economic value.

          3. Develops and maintains broad guidelines setting out positions on common proxy issues, but also considers each proposal in the context of the issuer, industry, and country or countries in which its business is conducted.

          4. Evaluates all factors it deems relevant when considering a vote, and may determine in certain instances that it is in the best interest of one or more clients to refrain from voting a given proxy ballot.

          5. Identifies and resolves all material proxy-related conflicts of interest between the firm and its clients in the best interests of the client.

          6. Believes that sound corporate governance practices can enhance shareholder value and therefore encourages consideration of an issuer’s corporate governance as part of the investment process.

          7. Believes that proxy voting is a valuable tool that can be used to promote sound corporate governance to the ultimate benefit of the client as shareholder.

          8. Provides all clients, upon request, with copies of these Global Proxy Policies and Procedures, the Proxy Voting Guidelines, and related reports, with such frequency as required to fulfill obligations under applicable law or as reasonably requested by clients.

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          9. Reviews regularly the voting record to ensure that proxies are voted in accordance with these Global Proxy Policies and Procedures and the set of Proxy Voting Guidelines selected by the client from those provided by Wellington Management; and ensures that procedures, documentation, and reports relating to the voting of proxies are promptly and properly prepared and disseminated.

Responsibility and Oversight Wellington Management has a Corporate Governance Committee, established by action of the firm’s Executive Committee that is responsible for the review and approval of the firm’s written Global Proxy Policies and Procedures and its Proxy Voting Guidelines, and for providing advice and guidance on specific proxy votes for individual issuers. The firm’s Legal Services Department monitors regulatory requirements with respect to proxy voting on a global basis and works with the Corporate Governance Committee to develop policies that implement those requirements. Day-to-day administration of the proxy voting process at Wellington Management is the responsibility of the Corporate Governance Group within the Corporate Operations Department. In addition, the Corporate Governance Group acts as a resource for portfolio managers and research analysts on proxy matters, as needed.

Statement of Procedures	Wellington Management has in place certain procedures for implementing its proxy voting policies.
General Proxy Voting	Authorization to Vote
	Wellington Management will vote only those proxies for which its clients have affirmatively delegated proxy-voting authority.
	Receipt of Proxy
	Proxy materials from an issuer or its information agent are forwarded to registered owners of record, typically the client’s custodian bank. If a client requests that Wellington Management votes proxies on its behalf, the client must instruct its custodian bank to deliver all relevant voting material to Wellington Management or its voting agent. Wellington Management, or its voting agent, may receive this voting information by mail, fax, or other electronic means.
	Reconciliation
	To the extent reasonably practicable, each public security proxy received by electronic means is matched to the securities eligible to be voted and a reminder is sent to any custodian or trustee that has not forwarded the proxies as due. Although proxies received for private securities, as well as those received in non-electronic format, are voted as received, Wellington Management is not able to reconcile these proxies to holdings, nor does it notify custodians of non-receipt.

Research In addition to proprietary investment research undertaken by Wellington Management investment professionals, the firm conducts proxy research internally, and uses the resources of a number of external sources to keep abreast of developments in corporate governance around the world and of current practices of specific companies.

Proxy Voting Following the reconciliation process, each proxy is compared against the set of Proxy Voting Guidelines selected by the client, and handled as follows:

• Generally, issues for which explicit proxy voting guidance is provided in the Proxy Voting Guidelines (i.e., “For”, “Against”, “Abstain”) are reviewed by the Corporate Governance Group and voted in accordance with the Proxy Voting Guidelines.

• Issues identified as “case-by-case” in the Proxy Voting Guidelines are further reviewed by the Corporate Governance Group. In certain circumstances, further input is needed, so the issues are forwarded to the relevant research analyst and/or portfolio manager(s) for their input.

• Absent a material conflict of interest, the portfolio manager has the authority to decide the final vote. Different portfolio managers holding the same securities may arrive at different voting conclusions for their clients’ proxies.

Material Conflict of Interest Identification and Resolution Processes Wellington Management’s broadly diversified client base and functional lines of responsibility serve to minimize the number of, but not prevent, material conflicts of interest it faces in voting proxies. Annually, the Corporate Governance Committee sets standards for identifying material conflicts based on client, vendor, and lender relationships, and publishes those standards to individuals involved in the proxy voting process. In addition, the Corporate Governance Committee encourages all personnel to contact the Corporate Governance Group about apparent conflicts of interest, even if the apparent conflict does not meet the published materiality criteria. Apparent conflicts are reviewed by designated members of the Corporate Governance Committee to determine if there is a conflict, and if so whether the conflict is material.

If a proxy is identified as presenting a material conflict of interest, the matter must be reviewed by designated members of the Corporate Governance Committee, who will resolve the conflict and direct the vote. In certain circumstances, the designated members may determine that the full Corporate Governance Committee should convene. Any Corporate Governance Committee member who is himself or herself subject to the identified conflict will not participate in the decision on whether and how to vote the proxy in question.

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Other Considerations In certain instances, Wellington Management may be unable to vote or may determine not to vote a proxy on behalf of one or more clients. While not exhaustive, the following list of considerations highlights some potential instances in which a proxy vote might not be entered.

Securities Lending Wellington Management may be unable to vote proxies when the underlying securities have been lent out pursuant to a client’s securities lending program. In general, Wellington Management does not know when securities have been lent out and are therefore unavailable to be voted. Efforts to recall loaned securities are not always effective, but, in rare circumstances, Wellington Management may recommend that a client attempt to have its custodian recall the security to permit voting of related proxies.

Share Blocking and Re-registration Certain countries require shareholders to stop trading securities for a period of time prior to and/or after a shareholder meeting in that country (i.e., share blocking). When reviewing proxies in share blocking countries, Wellington Management evaluates each proposal in light of the trading restrictions imposed and determines whether a proxy issue is sufficiently important that Wellington Management would consider the possibility of blocking shares. The portfolio manager retains the final authority to determine whether to block the shares in the client’s portfolio or to pass on voting the meeting.

          In certain countries, re-registration of shares is required to enter a proxy vote. As with share blocking, re-registration can prevent Wellington Management from exercising its investment discretion to sell shares held in a client’s portfolio for a substantial period of time. The decision process in blocking countries as discussed above is also employed in instances where re-registration is necessary.

          Lack of Adequate Information, Untimely Receipt of Proxy Materials, or Excessive Costs Wellington Management may be unable to enter an informed vote in certain circumstances due to the lack of information provided in the proxy statement or by the issuer or other resolution sponsor, and may abstain from voting in those instances. Proxy materials not delivered in a timely fashion may prevent analysis or entry of a vote by voting deadlines. In addition, Wellington Management’s practice is to abstain from voting a proxy in circumstances where, in its judgment, the costs exceed the expected benefits to clients. Requirements for Powers of Attorney and consularization are examples of such circumstances.

Additional Information Wellington Management maintains records of proxies voted pursuant to Section 204-2 of the Investment Advisers Act of 1940 (the “Advisers Act”), the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and other applicable laws.

          Wellington Management’s Global Proxy Policies and Procedures may be amended from time to time by Wellington Management. Wellington Management provides clients with a copy of its Global Proxy Policies and Procedures, including the Proxy Voting Guidelines, upon written request. In addition, Wellington Management will make specific client information relating to proxy voting available to a client upon reasonable written request.

Dated: April 1, 2007

Introduction Upon a client’s written request, Wellington Management Company, LLP (“Wellington Management”) votes securities that are held in the client’s account in response to proxies solicited by the issuers of such securities. Wellington Management established these Global Proxy Voting Guidelines to document positions generally taken on common proxy issues voted on behalf of clients.

          These guidelines are based on Wellington Management’s fiduciary obligation to act in the best economic interest of its clients as shareholders. Hence, Wellington Management examines and votes each proposal so that the long-term effect of the vote will ultimately increase shareholder value for our clients. Because ethical considerations can have an impact on the long-term value of assets, our voting practices are also attentive to these issues and votes will be cast against unlawful and unethical activity. Further, Wellington Management’s experience in voting proposals has shown that similar proposals often have different consequences for different companies. Moreover, while these Global Proxy Voting Guidelines are written to apply globally, differences in local practice and law make universal application impractical. Therefore, each proposal is evaluated on its merits, taking into account its effects on the specific company in question, and on the company within its industry. It should be noted that the following are guidelines, and not rigid rules, and Wellington Management reserves the right in all cases to vote contrary to guidelines where doing so is judged to represent the best economic interest of its clients.

          Following is a list of common proposals and the guidelines on how Wellington Management anticipates voting on these proposals. The “(SP)” after a proposal indicates that the proposal is usually presented as a Shareholder Proposal.

Voting Guidelines		Composition and Role of the Board of Directors
	o	Election of Directors:	Case-by-Case
		Wellington Management believes that shareholders’ ability to elect directors annually is the most important right shareholders have. We generally support management nominees, but will withhold votes from any director who is demonstrated to have

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	acted contrary to the best economic interest of shareholders. We may also withhold votes from directors who failed to implement shareholder proposals that received majority support, implemented dead-hand or no-hand poison pills, or failed to attend at least 75% of scheduled board meetings.
o	Classify Board of Directors:	Against
	We will also vote in favor of shareholder proposals seeking to declassify boards.
o	Adopt Director Tenure/Retirement Age (SP):	Against
o	Adopt Director & Officer Indemnification:	For
	We generally support director and officer indemnification as critical to the attraction and retention of qualified candidates to the board. Such proposals must incorporate the duty of care.

o	Allow Special Interest Representation to Board (SP):	Against
o	Require Board Independence:	For
	Wellington Management believes that, in the absence of a compelling counter-argument or prevailing market norms, at least 65% of a board should be comprised of independent directors, with independence defined by the local market regulatory authority. Our support for this level of independence may include withholding approval for non-independent directors, as well as votes in support of shareholder proposals calling for independence.
o	Require Key Board Committees to be Independent.	For
	Key board committees are the Nominating, Audit, and Compensation Committees. Exceptions will be made, as above, in respect of local market conventions.
o	Require a Separation of Chair and CEO or Require a Lead Director:	For
o	Approve Directors’ Fees:	For
o	Approve Bonuses for Retiring Directors:	Case-by-Case
o	Elect Supervisory Board/Corporate Assembly:	For
o	Elect/Establish Board Committee:	For
o	Adopt Shareholder Access/Majority Vote on Election of Directors (SP):	Case-by-Case
	Wellington Management believes that the election of directors by a majority of votes cast is the appropriate standard for companies to adopt and therefore generally will support those proposals that seek to adopt such a standard. Our support for such proposals will extend typically to situations where the relevant company has an existing resignation policy in place for directors that receive a majority of “withhold” votes. We believe that it is important for majority voting to be defined within the company’s charter and not simply within the company’s corporate governance policy.
	Generally we will not support proposals that fail to provide for the exceptional use of a plurality standard in the case of contested elections. Further, we will not support proposals that seek to adopt a majority of votes outstanding (i.e., total votes eligible to be cast as opposed to actually cast) standard.

Management Compensation

o	Adopt/Amend Stock Option Plans:	Case-by-Case
o	Adopt/Amend Employee Stock Purchase Plans:	For
o	Approve/Amend Bonus Plans:	Case-by-Case
	In the US, Bonus Plans are customarily presented for shareholder approval pursuant to Section 162(m) of the Omnibus Budget Reconciliation Act of 1992 (“OBRA”). OBRA stipulates that certain forms of compensation are not tax-deductible unless approved by

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	shareholders and subject to performance criteria. Because OBRA does not prevent the payment of subject compensation, we generally vote “for” these proposals. Nevertheless, occasionally these proposals are presented in a bundled form seeking 162 (m) approval and approval of a stock option plan. In such cases, failure of the proposal prevents the awards from being granted. We will vote against these proposals where the grant portion of the proposal fails our guidelines for the evaluation of stock option plans.
o	Approve Remuneration Policy:	Case-by-Case
o	Exchange Underwater Options:	Case-by-Case
	Wellington Management may support value-neutral exchanges in which senior management is ineligible to participate.
o	Eliminate or Limit Severance Agreements (Golden Parachutes):	Case-by-Case
	We will oppose excessively generous arrangements, but may support agreements structured to encourage management to negotiate in shareholders’ best economic interest.
o	Shareholder Approval of Future Severance Agreements Covering Senior Executives (SP):	Case-by-Case
	We believe that severance arrangements require special scrutiny, and are generally supportive of proposals that call for shareholder ratification thereof. But, we are also mindful of the board’s need for flexibility in recruitment and retention and will therefore oppose limitations on board compensation policy where respect for industry practice and reasonable overall levels of compensation have been demonstrated.
o	Expense Future Stock Options (SP):	For
o	Shareholder Approval of All Stock Option Plans (SP):	For
o	Disclose All Executive Compensation (SP):	For

Reporting of Results

o	Approve Financial Statements:	For
o	Set Dividends and Allocate Profits:	For
o	Limit Non-Audit Services Provided by Auditors (SP):	Case-by-Case
	We follow the guidelines established by the Public Company Accounting Oversight Board regarding permissible levels of non-audit fees payable to auditors.
o	Ratify Selection of Auditors and Set Their Fees:	Case-by-Case
	Wellington Management will generally support management’s choice of auditors, unless the auditors have demonstrated failure to act in shareholders’ best economic interest.
o	Elect Statutory Auditors:	Case-by-Case
o	Shareholder Approval of Auditors (SP):	For

Shareholder Voting Rights

o		Adopt Cumulative Voting (SP):	Against
		We are likely to support cumulative voting proposals at “controlled” companies (i.e., companies with a single majority shareholder), or at companies with two-tiered voting rights.
o		Shareholder Rights Plans	Case-by-Case
		Also known as Poison Pills, these plans can enable boards of directors to negotiate higher takeover prices on behalf of shareholders. However, these plans also may be misused to entrench management. The following criteria are used to evaluate both management and shareholder proposals regarding shareholder rights plans.
	–	We generally support plans that include:
	–	Shareholder approval requirement
	–	Sunset provision
	–	Permitted bid feature (i.e., bids that are made for all shares and demonstrate evidence of financing must be submitted to a shareholder vote).

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	Because boards generally have the authority to adopt shareholder rights plans without shareholder approval, we are equally vigilant in our assessment of requests for authorization of blank check preferred shares (see below).
o	Authorize Blank Check Preferred Stock:	Case-by-Case
	We may support authorization requests that specifically proscribe the use of such shares for anti-takeover purposes.
o	Eliminate Right to Call a Special Meeting:	Against
o	Increase Supermajority Vote Requirement:	Against
	We likely will support shareholder and management proposals to remove existing supermajority vote requirements.
o	Adopt Anti-Greenmail Provision:	For
o	Adopt Confidential Voting (SP):	Case-by-Case
	We require such proposals to include a provision to suspend confidential voting during contested elections so that management is not subject to constraints that do not apply to dissidents.
o	Remove Right to Act by Written Consent: Capital Structure	Against
o	Increase Authorized Common Stock:	Case-by-Case
	We generally support requests for increases up to 100% of the shares currently authorized. Exceptions will be made when the company has clearly articulated a reasonable need for a greater increase. Conversely, at companies trading in less liquid markets, we may impose a lower threshold.
o	Approve Merger or Acquisition:	Case-by-Case
o	Approve Technical Amendments to Charter:	Case-by-Case
o	Opt Out of State Takeover Statutes:	For
o	Authorize Share Repurchase:	For
o	Authorize Trade in Company Stock:	For
o	Approve Stock Splits:	Case-by-Case
	We approve stock splits and reverse stock splits that preserve the level of authorized, but unissued shares.
o	Approve Recapitalization/Restructuring:	Case-by-Case
o	Issue Stock with or without Preemptive Rights:	For
o	Issue Debt Instruments:	Case-by-Case

Social Issues

o	Endorse the Ceres Principles (SP):	Case-by-Case
o	Disclose Political and PAC Gifts (SP):	Case-by-Case
	Wellington Management generally does not support imposition of disclosure requirements on management of companies in excess of regulatory requirements.
o	Require Adoption of International Labor Organization’s Fair Labor Principles (SP):	Case-by-Case
o	Report on Sustainability (SP):	Case-by-Case

Miscellaneous

o	Approve Other Business:	Against
o	Approve Reincorporation:	Case-by-Case
o	Approve Third-Party Transactions:	Case-by-Case

Dated: December 6, 2007

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APPENDIX B

PORTFOLIO MANAGERS

Transamerica AllianceBernstein International Value

	Registered Investment			Other Pooled Investment
	Companies			Vehicles			Other Accounts
			Assets			Assets			Assets
Portfolio Manager	Number		Managed	Number		Managed	Number		Managed
Sharon Fay		132	$46.7 million		156	$21.4 million		39,323	$106.6 million
Kevin Simms		132	$46.7 million		168	$24.4 million		39,323	$106.6 million
Henry D’Auria		89	$27.7 million		103	$18.9 million		953	$78.5 million
Marilyn Fedak		120	$46.3 million		140	$17.3 million		39,230	$89.6 million
John Mahedy		119	$46.0 million		139	$17.2 million		39,211	$88.1 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Sharon Fay		3	$6.7 million		8	$0.6 million		139	$12.5 million
Kevin Simms		3	$6.7 million		9	$1.2 million		139	$12.5 million
Henry D’Auria		2	$2.7 million		7	$0.6 million		131	$11.8 million
Marilyn Fedak		3	$6.7 million		3	$0.2 million		110	$7.8 million
John Mahedy		3	$6.7 million		3	$0.2 million		107	$7.5 million

Conflict of Interest

     As an investment adviser and fiduciary, AllianceBernstein owes its clients and shareholders an undivided duty of loyalty. We recognize that conflicts of interest are inherent in our business and accordingly have developed policies and procedures (including oversight monitoring) reasonably designed to detect, manage and mitigate the effects of actual or potential conflicts of interest in the area of employee personal trading, managing multiple accounts for multiple clients, including AllianceBernstein Mutual Funds, and allocating investment opportunities. Investment professionals, including portfolio managers and research analysts, are subject to the above-mentioned policies and oversight monitoring to ensure that all clients are treated equitably. We place the interests of our clients first and expect all of our employees to meet their fiduciary duties.

Employee Personal Trading

     AllianceBernstein has adopted a Code of Business Conduct and Ethics that is designed to detect and prevent conflicts of interest when investment professionals and other personnel of AllianceBernstein own, buy or sell securities which may be owned by, or bought or sold for, clients. Personal securities transactions by an employee may raise a potential conflict of interest when an employee owns or trades in a security that is owned or considered for purchase or sale by a client, or recommended for purchase or sale by an employee to a client. Subject to the reporting requirements and other limitations of its Code of Business Conduct and Ethics, AllianceBernstein permits its employees to engage in personal securities transactions, and also allows them to acquire investments in the AllianceBernstein Mutual Funds through direct purchase, 401K/profit sharing plan investment and/or notionally in connection with deferred incentive compensation awards. AllianceBernstein’s Code of Ethics and Business Conduct requires disclosure of all personal accounts and maintenance of brokerage accounts with designated broker-dealers approved by AllianceBernstein. The Code also requires preclearance of all securities transactions and imposes a one-year holding period for securities purchased by employees to discourage short-term trading.

Managing Multiple Accounts for Multiple Clients

     AllianceBernstein has compliance policies and oversight monitoring in place to address conflicts of interest relating to the management of multiple accounts for multiple clients. Conflicts of interest may arise when an investment professional has responsibilities for the investments of more than one account because the investment professional may be unable to devote equal time and attention to each account. The investment professional or investment professional teams for each client may have responsibilities for managing all or a portion of the investments of multiple accounts with a common investment strategy, including other registered investment companies, unregistered investment vehicles, such as hedge funds, pension plans, separate accounts, collective trusts and charitable foundations. Among other things, AllianceBernstein’s policies and procedures provide for the prompt dissemination to investment professionals of initial or changed investment recommendations by analysts so that investment professionals are better able to develop investment strategies for all accounts they manage. In addition, investment decisions by investment professionals are reviewed for the purpose of maintaining uniformity among similar accounts and ensuring that accounts are treated equitably. No investment professional that manages client accounts carrying performance fees is compensated directly or specifically for the performance of those accounts. Investment professional compensation reflects a broad contribution in multiple dimensions to long-term investment success for our clients and is not tied specifically to the performance of any particular client’s account, nor is it directly tied to the level or change in the level of assets under management.

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Allocating Investment Opportunities

     AllianceBernstein has policies and procedures intended to address conflicts of interest relating to the allocation of investment opportunities. These policies and procedures are designed to ensure that information relevant to investment decisions is disseminated promptly within its portfolio management teams and investment opportunities are allocated equitably among different clients. The investment professionals at AllianceBernstein routinely are required to select and allocate investment opportunities among accounts. Portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar accounts, which minimizes the potential for conflicts of interest relating to the allocation of investment opportunities. Nevertheless, investment opportunities may be allocated differently among accounts due to the particular characteristics of an account, such as size of the account, cash position, tax status, risk tolerance and investment restrictions or for other reasons.

     AllianceBernstein’s procedures are also designed to prevent potential conflicts of interest that may arise when AllianceBernstein has a particular financial incentive, such as a performance-based management fee, relating to an account. An investment professional may perceive that he or she has an incentive to devote more time to developing and analyzing investment strategies and opportunities or allocating securities preferentially to accounts for which AllianceBernstein could share in investment gains.

     To address these conflicts of interest, AllianceBernstein’s policies and procedures require, among other things, the prompt dissemination to investment professionals of any initial or changed investment recommendations by analysts; the aggregation of orders to facilitate best execution for all accounts; price averaging for all aggregated orders; objective allocation for limited investment opportunities (e.g., on a rotational basis) to ensure fair and equitable allocation among accounts; and limitations on short sales of securities. These procedures also require documentation and review of justifications for any decisions to make investments only for select accounts or in a manner disproportionate to the size of the account.

Compensation

     AllianceBernstein’s compensation program for investment professionals is designed to be competitive and effective in order to attract and retain the highest caliber employees. The compensation program for investment professionals is designed to reflect their ability to generate long-term investment success for our clients, including shareholders of the AllianceBernstein Mutual Funds. Investment professionals do not receive any direct compensation based upon the investment returns of any individual client account, nor is compensation tied directly to the level or change in the level of assets under management. Investment professionals’ annual compensation is comprised of the following:

(i)	Fixed-base salary: This is generally the smallest portion of compensation. The base salary is a relatively low, fixed salary within a similar range for all investment professionals. The base salary is determined at the outset of employment based on level of experience, does not change significantly from year to year, and hence, is not particularly sensitive to performance.
(ii)	Discretionary incentive compensation in the form of an annual cash bonus: AllianceBernstein’s overall profitability determines the total amount of incentive compensation available to investment professionals. This portion of compensation is determined subjectively based on qualitative and quantitative factors. In evaluating this component of an investment professional’s compensation, AllianceBernstein considers the contribution to his/her team or discipline as it relates to that team’s overall contribution to the long-term investment success, business results and strategy of AllianceBernstein. Quantitative factors considered include, among other things, relative investment performance (e.g., by comparison to competitor or peer group funds or similar styles of investments, and appropriate, broad-based or specific market indices), and consistency of performance. There are no specific formulas used to determine this part of an investment professional’s compensation and the compensation is not tied to any pre-determined or specified level of performance. AllianceBernstein also considers qualitative factors such as the complexity and risk of investment strategies involved in the style or type of assets managed by the investment professional; success of marketing/business development efforts and client servicing; seniority/length of service with the firm; management and supervisory responsibilities; and fulfillment of AllianceBernstein’s leadership criteria.
(iii)	Discretionary incentive compensation in the form of awards under AllianceBernstein’s Partners Compensation Plan (“deferred awards”): AllianceBernstein’s overall profitability determines the total amount of deferred awards available to investment professionals. The deferred awards are allocated among investment professionals based on criteria similar to those used to determine the annual cash bonus. There is no fixed formula for determining these amounts. Deferred awards, for which there are various investment options, vest over a four-year period and are generally forfeited if the employee resigns or AllianceBernstein terminates his/her employment. Investment options under the deferred awards plan include many of the same AllianceBernstein Mutual Funds offered to mutual fund investors, thereby creating a close alignment between the financial interests of the investment professionals and those of AllianceBernstein’s clients and mutual fund shareholders with respect to the performance of those mutual funds. AllianceBernstein also permits deferred award recipients to allocate up to 50% of their award to investments in AllianceBernstein’s publicly traded equity securities.17
(iv)	Contributions under AllianceBernstein’s Profit Sharing/401(k) Plan: The contributions are based on AllianceBernstein’s overall profitability. The amount and allocation of the contributions are determined at the sole discretion of AllianceBernstein.

17 Prior to 2002, investment professional compensation also included discretionary long-term incentive in the form of restricted grants of AllianceBernstein’s Master Limited Partnership Units.

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Ownership of Securities

As of October 31, 2008, none of the portfolio managers beneficially owned any equity securities in the fund.

Transamerica American Century Large Company Value

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts*
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Charles A. Ritter		10	$2.4 billion			1	$188.1 million			3	$131.3 million
Brendan Healy		10	$2.4 billion			1	$188.1 million			3	$131.3 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Charles A. Ritter		0	$	0		0	$	0		0	$	0
Brendan Healy		0	$	0		0	$	0		0	$	0

Conflict of Interest

The sub-adviser for the fund believes that certain conflicts of interest may arise in connection with the management of multiple portfolios. Potential conflicts include, for example, conflicts among investment strategies and conflicts in the allocation of investment opportunities. American Century has adopted policies and procedures that are designed to minimize the effects of these conflicts. Responsibility for managing American Century client portfolios is organized according to investment discipline. Investment disciplines include, for example, quantitative equity, small- and mid-cap growth, large-cap growth, value, international, fixed income, asset allocation, and sector funds. Within each discipline are one or more portfolio teams responsible for managing specific client portfolios. Generally, client portfolios with similar strategies are managed by the same team using the same objective, approach, and philosophy. Accordingly, portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar portfolios, which minimizes the potential for conflicts of interest. For each investment strategy, one portfolio is generally designated as the “policy portfolio.” Other portfolios with similar investment objectives, guidelines and restrictions are referred to as “tracking portfolio.” When managing policy and tracking portfolios, a portfolio team typically purchases and sells securities across all portfolios that the team manages. American Century’s trading systems include various order entry programs that assist in the management of multiple portfolios, such as the ability to purchase or sell the same relative amount of one security across several funds. In some cases a tracking portfolio may have additional restrictions or limitations that cause it to be managed separately from the policy portfolio. Portfolio managers make purchase and sale decisions for such portfolios alongside the policy portfolio to the extent the overlap is appropriate, and separately, if the overlap is not. American Century may aggregate orders to purchase or sell the same security for multiple portfolios when it believes such aggregation is consistent with its duty to seek best execution on behalf of its clients. Orders of certain client portfolios may, by investment restriction or otherwise, be determined not available for aggregation. American Century has adopted policies and procedures to minimize the risk that a client portfolio could be systematically advantaged or disadvantaged in connection with the aggregation of orders. To the extent equity trades are aggregated, shares purchased or sold are generally allocated to the participating portfolios pro rata based on order size. Because initial public offerings (IPOs) are usually available in limited supply and in amounts too small to permit across-the-board pro rata allocations, American Century has adopted special procedures designed to promote a fair and equitable allocation of IPO securities among clients over time. Fixed income securities transactions are not executed through a centralized trading desk. Instead, portfolio teams are responsible for executing trades with broker/dealers in a predominantly dealer marketplace. Trade allocation decisions are made by the portfolio manager at the time of trade execution and orders entered on the fixed income order management system. Finally, investment of American Century’s corporate assets in proprietary accounts may raise additional conflicts of interest. To mitigate these potential conflicts of interest, American Century has adopted policies and procedures intended to provide that trading in proprietary accounts is performed in a manner that does not give improper advantage to American Century to the detriment of client portfolios.

Compensation

As of October 31, 2008, the portfolio managers’ compensation included a base salary, a bonus, restricted stock plans and deferred compensation plans. The portfolio managers’ compensation is not directly tied to the value of assets held in client portfolios. The base salary is in the form of a fixed annual salary. The annual bonus determined by a combination of factors. One factor is fund investment performance. A significant portion of portfolio manager compensation takes the form of an annual incentive bonus tied to performance. Bonus payments are determined by a combination of factors. One factor is fund investment performance. For most American Century mutual funds, investment performance is measured by a combination of one- and three-year pre-tax performance relative to various benchmarks and/or internally-customized peer groups. The performance comparison periods may be adjusted based on a fund’s inception date or a portfolio manager’s tenure on the fund. Custom peer groups are constructed using all the funds in the indicated categories as a starting point. Funds are then eliminated from the peer group based on a standardized methodology designed to result in a final peer group that is both more stable over the long term (i.e., has less peer turnover) and that more closely represents the fund’s true peers based on internal investment mandates. Beginning in 2008, American Century Investments is placing increased emphasis on long-term performance and is phasing in five year performance periods.

Portfolio managers may have responsibility for multiple American Century mutual funds. In such cases, the performance of each is assigned a percentage weight appropriate for the portfolio manager’s relative levels of responsibility.

Portfolio managers also may have responsibility for portfolios that are managed in a fashion similar to that of other American Century mutual funds. This is the case for the Transamerica American Century Large Company Value fund. If the performance of a similarly managed account is considered for purposes of compensation, it is either measured in the same way as a comparable American Century mutual fund (i.e., relative to the performance of a benchmark and/or peer group) or relative to the performance of such mutual

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fund. Performance of the Transamerica American Century Large Company Value fund is not separately considered in determining portfolio manager compensation. A second factor in the bonus calculation refers to the performance of all American Century funds managed according to a particular investment style, such as U.S. growth or value. Performance is measured for each product individually as described above and then combined to create an overall composite for the product group. These composites may measure one-year performance (equal weighted) or a combination of one- and three-year performance (asset weighted) depending on the portfolio manager’s responsibilities and products managed. This feature is designed to encourage effective teamwork among portfolio management teams in achieving long-term investment success for similarly styled portfolios. A portion of some portfolio managers’ bonuses may be tied to individual performance goals, such as research projects and the development of new products. Portfolio managers are eligible for grants of restricted stock of American Century Companies, Inc. (“ACC)”. These grants are discretionary, and eligibility and availability can vary from year to year. The size of an individual’s grant is determined by individual and product performance as well as other product-specific considerations. Grants can appreciate/depreciate in value based on the performance of the ACC stock during the restriction period (generally three years). Portfolio managers are eligible for grants of deferred compensation. These grants are used in limited situations, primarily for retention purposes. Grants are fixed and can appreciate/depreciate in value based on the performance of the American Century mutual funds in which the portfolio manager chooses to invest them.

Ownership of Securities

As of October 31, 2008, none of the portfolio managers beneficially owned any equity securities in the fund.

Transamerica Asset Allocation – Conservative Portfolio

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts*
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Jon Hale		15	$13.9 billion			0	$	0		74,223	$1.1 billion
Maciej Kowara		15	$13.9 billion			0	$	0		74,223	$1.1 billion
Jeff McConnell		15	$13.9 billion			0	$	0		74,223	$1.1 billion
Mike Stout		15	$13.9 billion			0	$	0		74,223	$1.1 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Jon Hale		0	$	0		0	$	0		0	$	0
Maciej Kowara		0	$	0		0	$	0		0	$	0
Jeff McConnell		0	$	0		0	$	0		0	$	0
Mike Stout		0	$	0		0	$	0		0	$	0

Transamerica Asset Allocation – Growth Portfolio

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts*
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Jon Hale		15	$13.3 billion			0	$	0		74,223	$1.1 billion
Maciej Kowara		15	$13.3 billion			0	$	0		74,223	$1.1 billion
Jeff McConnell		15	$13.3 billion			0	$	0		74,223	$1.1 billion
Mike Stout		15	$13.3 billion			0	$	0		74,223	$1.1 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Jon Hale		0	$	0		0	$	0		0	$	0
Maciej Kowara		0	$	0		0	$	0		0	$	0
Jeff McConnell		0	$	0		0	$	0		0	$	0
Mike Stout		0	$	0		0	$	0		0	$	0

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Transamerica Asset Allocation – Moderate Growth Portfolio

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts*
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Jon Hale		15	$12.0 billion			0	$	0		74,223	$1.1 billion
Maciej Kowara		15	$12.0 billion			0	$	0		74,223	$1.1 billion
Jeff McConnell		15	$12.0 billion			0	$	0		74,223	$1.1 billion
Mike Stout		15	$12.0 billion			0	$	0		74,223	$1.1 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Jon Hale		0	$	0		0	$	0		0	$	0
Maciej Kowara		0	$	0		0	$	0		0	$	0
Jeff McConnell		0	$	0		0	$	0		0	$	0
Mike Stout		0	$	0		0	$	0		0	$	0

Transamerica Asset Allocation – Moderate Portfolio

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts*
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Jon Hale		15	$13.1 billion			0	$	0		74,223	$1.1 billion
Maciej Kowara		15	$13.1 billion			0	$	0		74,223	$1.1 billion
Jeff McConnell		15	$13.1 billion			0	$	0		74,223	$1.1 billion
Mike Stout		15	$13.1 billion			0	$	0		74,223	$1.1 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Jon Hale		0	$	0		0	$	0		0	$	0
Maciej Kowara		0	$	0		0	$	0		0	$	0
Jeff McConnell		0	$	0		0	$	0		0	$	0
Mike Stout		0	$	0		0	$	0		0	$	0

Transamerica Multi-Manager Alternative Strategies Portfolio

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts*
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Jon Hale		15	$14.5 billion			0	$	0		74,223	$1.1 billion
Maciej Kowara		15	$14.5 billion			0	$	0		74,223	$1.1 billion
Jeff McConnell		15	$14.5 billion			0	$	0		74,223	$1.1 billion
Mike Stout		15	$14.5 billion			0	$	0		74,223	$1.1 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Jon Hale		0	$	0		0	$	0		0	$	0
Maciej Kowara		0	$	0		0	$	0		0	$	0
Jeff McConnell		0	$	0		0	$	0		0	$	0
Mike Stout		0	$	0		0	$	0		0	$	0

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Transamerica Multi-Manager International Portfolio

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts*
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number*		Managed
Jon Hale		15	$14.5 billion			0	$	0		74,223	$1.1 billion
Maciej Kowara		15	$14.5 billion			0	$	0		74,223	$1.1 billion
Jeff McConnell		15	$14.5 billion			0	$	0		74,223	$1.1 billion
Mike Stout		15	$14.5 billion			0	$	0		74,223	$1.1 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Jon Hale		0	$	0		0	$	0		0	$	0
Maciej Kowara		0	$	0		0	$	0		0	$	0
Jeff McConnell		0	$	0		0	$	0		0	$	0
Mike Stout		0	$	0		0	$	0		0	$	0

* Relates to individual retirement accounts that Morningstar Associates, the Portfolio Construction Manager of the funds, has discretionary management authority over through its managed account service, which is made available through retirement plan providers and sponsors. In those circumstances in which any of the above funds are included in a retirement plan, Morningstar Associates’ managed account service will exclude those funds from its universe of possible investment recommendations to the individual. This exclusion is intended to prevent a prohibited transaction under ERISA.

Conflict of Interest

The Portfolio Construction Manager is a wholly owned subsidiary of Morningstar, Inc. (“Morningstar’). As part of its overall operation, Morningstar is engaged in the business of providing ratings and analysis on financial products. A potential conflict of interest exists since Morningstar could be providing ratings and analysis on products to which the Portfolio Construction Manager provides services. First, Morningstar will not create analyst commentary for portfolios where Morningstar’s subsidiaries act as a portfolio construction manage/sub-adviser. This commentary is general subjective in nature and could represent a conflict of interest. This means that the portfolios in which the Portfolio Construction Manager is involved with will not receive written analyst commentary from Morningstar. However, such portfolios will receive Morningstar Star Ratings. These ratings are purely quantitative and, therefore, cannot be biased by subjective factors. Also, the Morningstar style box assignment is primarily based on quantitative characteristics of the underlying securities in the portfolio. The initial assignment and subsequent style box changes follow established procedures and are subject to review by personnel within the Morningstar Data business unit—a separate and distinct unit within Morningstar. A situation may occur where personnel of the Portfolio Construction Manager provide information to the Morningstar Data unit to clarify style box assignment. However, the assignment process takes place and is monitored by a Morningstar business unit that is completely independent from the Portfolio Construction Manager.

Finally, the Portfolio Construction Manager acts as a portfolio construction manager/sub-adviser to other fund-of-funds products affiliated with Transamerica Funds. Similar to its responsibilities with Transamerica Funds, for these other fund-of-funds products, the Portfolio Construction Manager determines the asset allocation percentages, selects underlying funds based on an investment universe defined by a party other than the Portfolio Construction Manager, provides trading instructions to a custodian and performs ongoing monitoring of the asset allocation mix and underlying funds. Given that the underlying holdings of these other fund-of-funds products and the asset allocation portfolios within Transamerica Funds are registered mutual funds and that investment universe from which underlying holdings are chosen from are determined by someone other than Portfolio Construction Manager, potential conflicts of favoring one product over another in terms of investment opportunities are greatly mitigated.

Compensation

All of the above mentioned co-portfolio managers’ compensation includes salary, annual bonus, and restricted stock grants. The salary is set as a fixed amount and is determined by the president of Morningstar Associates. The co-portfolio managers’ annual bonus is paid from a bonus pool which is a function of the earnings of the Investment Consulting business unit of Morningstar Associates, and the distribution of that pool is at the discretion of the president of Morningstar Associates, who may or may not account for the performance of the funds in allocating that pool. The fee for consulting on the funds accounts for a substantial portion of the revenue and earnings of the Investment Consulting business unit of Morningstar Associates, and because that fee is based on the assets under management in the funds, there is an indirect relationship between the assets under management in the funds and the bonus payout to the portfolio manager. The restricted stock grants are made to the co-portfolio managers from a pool that is distributed at the discretion of the president of Morningstar Associates. The restricted stock grants are based on the stock of the parent company, Morningstar, Inc., and vest in equal parts over a four-year period.

Ownership of Securities

As of October 31, 2008, neither Mr. Kowara, Mr. McConnell nor Mr. Stout beneficially owned shares of any equity securities in the funds. Mr. Hale owns the following portfolios: Transamerica Asset Allocation – Growth Portfolio: Market value range as of October 31, 2008: $10,001 - $50,000; and Transamerica Multi-Manager International Portfolio: Market value range as of October 31, 2008: $10,000 - $50,000.

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Transamerica BlackRock Global Allocation

	Registered Investment				Other Pooled Investment
	Companies				Vehicles			Other Accounts
			Assets				Assets			Assets
Portfolio Manager	Number		Managed		Number		Managed	Number		Managed
Dennis W. Stattman		4	$26.7 billion			7	$12.4 billion		0	$	0
Dan Chamby		4	$26.7 billion			7	$12.4 billion		0	$	0
Romualdo Roldan		4	$26.7 billion			7	$12.4 billion		0	$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Dennis W. Stattman		0	$	0		1	$362.7 million		0	$	0
Dan Chamby		0	$	0		1	$362.7 million		0	$	0
Romualdo Roldan		0	$	0		1	$362.7 million		0	$	0

Transamerica BlackRock Large Cap Value

	Registered Investment				Other Pooled Investment
	Companies				Vehicles			Other Accounts
			Assets				Assets			Assets
Portfolio Manager	Number		Managed		Number		Managed	Number		Managed
Robert C. Doll, Jr.		24	$12.8 billion			14	$3.07 billion		27	$2.4 billion
Daniel Hanson		24	$12.8 billion			14	$3.07 billion		27	$2.4 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Robert C. Doll, Jr.		0	$	0		2	$156.8 million		8	$471.5 million
Daniel Hanson		0	$	0		2	$156.8 million		8	$471.5 million

Transamerica BlackRock Natural Resources

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Robert Shearer		11	$3.96 billion			1	$4.05 million			0	$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Robert Shearer		0	$	0		0	$	0		0	$	0

Conflict of Interest

Real, potential or apparent conflicts of interest may arise when a portfolio manager has day-to-day portfolio management responsibilities with respect to more than one fund or account.

BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made for the Funds.  In addition, BlackRock, its affiliates and any officer, director, stockholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund.  BlackRock, or any of its affiliates, or any officer, director, stockholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities.  Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock’s (or its affiliates’) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or the officers, directors or employees of any of them has any substantial economic interest or possesses material non-public information.  Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund.  In this regard, it should be noted that Messrs. Doll, Stattman, Chamby, Hanson, Macmillan and Roldan currently manage certain accounts that are subject to performance fees.  In addition, a portfolio manager may assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred.  Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees.

B-7

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted a policy that is intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time. This policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base.

Compensation

BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock such as its Long-Term Retention and Incentive Plan.

Due to Mr. Doll’s unique position (as Portfolio Manager, Vice Chairman and Director of BlackRock, Inc., Global Chief Investment Officer for Equities, Chairman of the BlackRock Retail Operating Committee, and member of the BlackRock Executive Committee), his compensation does not solely reflect his role as portfolio manager of the funds managed by him. The performance of his fund(s) is included in the determination of his incentive compensation but, given his multiple roles and the various compensation components, the performance of his fund(s) is not the primary driver of his compensation.

Base compensation.  Generally, portfolio managers receive base compensation based on their seniority and/or their position with the firm. Senior portfolio managers who perform additional management functions within the portfolio management group or within BlackRock may receive additional compensation for serving in these other capacities.

Discretionary Incentive Compensation

Discretionary incentive compensation is based on a formulaic compensation program. BlackRock’s formulaic portfolio manager compensation program includes: pre-tax investment performance relative to appropriate competitors or benchmarks over 1-, 3- and 5-year performance periods and a measure of operational efficiency. If a portfolio manager’s tenure is less than five years, performance periods will reflect time in position. In most cases, including for the portfolio managers of the Fund, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured.  BlackRock’s Chief Investment Officers determine the benchmarks against which the performance of funds and other accounts managed by each portfolio manager is compared and the period of time over which performance is evaluated.  With respect to the portfolio managers, such benchmarks for the Funds include the following:  

Portfolio Manager(s)	Portfolio Managed	Benchmarks Applicable to Each Manager
Dennis W. Stattman Dan Chamby Romualdo Roldan James Macmillan	Transamerica BlackRock Global Allocation	S&P 500® Index, FTSE World Index ex US, Merrill Lynch 5 Year Treasury Index, Citigroup World Government Bond Index and MSCI Europe Index
Robert C. Doll, Jr. Daniel Hanson	Transamerica BlackRock Large Cap Value	Lipper Multi-Cap Value Funds classification
Bob Shearer	Transamerica BlackRock Natural Resources	Lipper Natural Resources Funds classification

Portfolio managers who meet relative investment performance and financial management objectives during a specified performance time period are eligible to receive an additional bonus which may or may not be a large part of their overall compensation. A smaller element of portfolio manager discretionary compensation may include consideration of: financial results, expense control, profit margins, strategic planning and implementation, quality of client service, market share, corporate reputation, capital allocation, compliance and risk control, leadership, workforce diversity, supervision, technology and innovation. All factors are considered collectively by BlackRock management.

Distribution of Discretionary Incentive Compensation

Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods.

     Long-Term Retention and Incentive Plan (“LTIP”) — The LTIP is a long-term incentive plan that seeks to reward certain key employees. Beginning in 2006, awards are granted under the LTIP in the form of BlackRock, Inc. restricted stock units that, if properly vested and subject to the attainment of certain performance goals, will be settled in BlackRock, Inc. common stock. Each portfolio manager has received awards under the LTIP.

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     Deferred Compensation Program — A portion of the compensation paid to eligible BlackRock employees may be voluntarily deferred into an account that tracks the performance of certain of the firm’s investment products. Each participant in the deferred compensation program is permitted to allocate his deferred amounts among the various investment options. Each portfolio manager has participated in the deferred compensation program.

Other compensation benefits. In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:  

     Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 6% of eligible pay contributed to the plan capped at $4,000 per year, and a company retirement contribution equal to 3% of eligible compensation, plus an additional contribution of 2% for any year in which BlackRock has positive net operating income.  The RSP offers a range of investment options, including registered investment companies managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, absent employee investment direction, are invested into a balanced portfolio.  The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.  Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000.  Each portfolio manager except Mr. Macmillan is eligible to participate in these plans.

Portfolio managers are also eligible to participate in broad-based plans offered generally to BlackRock employees, including broad-based retirement, health and other employee benefit plans. For example, BlackRock has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a Group Personal Pension Plan (GPPP) and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution to the GPPP is between 6% to 15% (dependent on service related entitlement) of eligible pay capped at £150,000 per annum. The GPPP offers a range of investment options, including several collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, in the absence of an investment election being made, are invested into a passive balanced managed fund. The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000. Mr. Macmillan is eligible to participate in these plans.

Ownership of Securities

As of October 31, 2008, none of the portfolio managers beneficially owned any equity securities in the funds.

Transamerica BNY Mellon Market Neutral Strategy

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Tony Garvin		11	$2.6 billion			3	$342 million			54	$5.8 billion
Oliver Buckley		15	$8.8 billion			3	$342 million			54	$5.8 billion
Mike Dunn		7	$1.8 billion			6	$486 million			61	$6.2 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Tony Garvin		0		0		0		0		10	$1.1 billion
Oliver Buckley		2	$6 billion			0		0		10	$1.1 billion
Mike Dunn		0		0		0		0		12	$1.3 billion

Conflict of Interest

In managing other funds, certain conflicts of interest may arise. The sub-adviser may manage one or more mutual funds as well as other types of accounts, including proprietary accounts, separate accounts for institutions and individuals, and other pooled investment vehicles. Portfolio managers make investment decisions for an account or portfolio based on its investment objectives and policies, and other relevant investment considerations. A portfolio manager may manage another account whose fees may be materially greater than the management fees paid by the fund and may include a performance-based fee. Management of multiple funds and accounts may create potential conflicts of interest relating to the allocation of investment opportunities, and the aggregation and allocation of trades. The sub-adviser has developed policies and procedures designed to reasonably mitigate and manage the potential conflicts of interest that may arise from the management of multiple types of accounts for multiple clients.

B-9

Compensation

The portfolio manager’s cash compensation is comprised primarily of a market-based salary and an incentive compensation plan (annual and long term incentive). Funding for the Mellon Capital Management Corporation (“MCM”) Annual Incentive Plan and Long Term Incentive Plan is through a pre-determined fixed percentage of overall company profitability. Therefore, all bonus awards are based initially on Company performance. The investment professionals are eligible to receive annual cash bonus awards from the incentive compensation plan. Annual awards are granted in March, for the prior calendar year. Individual awards for investment professionals are discretionary, based on product performance relative to both benchmarks and peer comparisons and goals established at the beginning of each calendar year. Goals are to a substantial degree based on investment performance, including performance for one and three year periods. Also considered in determining individual awards are team participation and general contributions to MCM.

All portfolio managers are also eligible to participate in the MCM Long Term Investment Plan. This plan provides for an annual award, payable in deferred cash that cliff vests after 3 years, with an interest rate equal to the average year over year earnings growth of MCM (capped at 20% per year). Management has discretion with respect to actual participation and award size.

Portfolio managers whose compensation exceeds certain levels may elect to defer portions of their base salaries and/or incentive compensation pursuant to Bank of New York Mellon’s elective deferred compensation plan.

Ownership of Securities

As of October 31, 2008, the portfolio managers did not beneficially own any equity securities in the fund.

Transamerica Clarion Global Real Estate Securities

	Registered Investment			Other Pooled Investment
	Companies			Vehicles				Other Accounts
			Assets			Assets				Assets
Portfolio Manager	Number		Managed	Number		Managed		Number		Managed
T. Ritson Ferguson		23	$9.3 billion		16	$947 million			69	$1.8 billion
Joseph P. Smith		19	$8.9 billion		16	$947 million			63	$1.7 billion
Steven D. Burton		21	$8.7 billion		3	$108 million			51	$1.3 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
T. Ritson Ferguson		1	$134 million		12	$686 million			2	$208 million
Joseph P. Smith		1	$134 million		12	$686 million			2	$208 million
Steven D. Burton		1	$134 million		0	$	0		1	$181 million

Conflict of Interest

A Clarion portfolio manager may be subject to potential conflicts of interest because the portfolio manager is responsible for other accounts in addition to the fund. These other accounts may include, among others, other mutual funds, separately managed advisory accounts, commingled trust accounts, insurance separate accounts, wrap fee programs and hedge funds. Potential conflicts may arise out of the implementation of differing investment strategies for a portfolio manager’s various accounts, the allocation of investment opportunities among those accounts or differences in the advisory fees paid by the portfolio manager’s accounts.

A potential conflict of interest may arise as a result of a Clarion portfolio manager’s responsibility for multiple accounts with similar investment guidelines. Under these circumstances, a potential investment may be suitable for more than one of the portfolio manager’s accounts, but the quantity of the investment available for purchase is less than the aggregate amount the accounts would ideally devote to the opportunity. Similar conflicts may arise when multiple accounts seek to dispose of the same investment.

A Clarion portfolio manager may also manage accounts whose objectives and policies differ from those of the fund. These differences may be such that under certain circumstances, trading activity appropriate for one account managed by the portfolio manager may have adverse consequences for another account managed by the portfolio manager. For example, if an account were to sell a significant position in a security, which could cause the market price of that security to decrease, while the fund maintained its position in that security.

A potential conflict may also arise when a Clarion portfolio manager is responsible for accounts that have different advisory fees – the difference in the fees may create an incentive for the portfolio manager to favor one account over another, for example, in terms of access to particularly appealing investment opportunities. This conflict may be heightened where an account is subject to a performance-based fee.

The sub-adviser recognizes the duty of loyalty it owes to its clients and has established and implemented certain policies and procedures designed to control and mitigate conflicts of interest arising from the execution of a variety of portfolio management and trading strategies across the firm’s diverse client base. Such policies and procedures include, but are not limited to, (i) investment process, portfolio management and trade allocation procedures (ii) procedures regarding short sales in securities recommended for other clients; and (iii) procedures regarding personal trading by the firm’s employees (contained in the Code of Ethics).

B-10

Compensation

As of October 31, 2008, there are three pieces of compensation for portfolio managers – base salary, annual bonus and deferred compensation awards.  Base salary is reviewed annually and fixed for each year at market competitive levels.  Variable bonus and deferred compensation awards are made annually and are based upon individual achievement, over each annual period, of performance objectives established at the beginning of the period. Portfolio managers’ objectives include targets for gross performance above specific benchmarks for all portfolios they manage, including the fund. With respect to the fund, such benchmarks include the Morgan Stanley U.S. REIT Index and the Dow Jones Wilshire Real Estate Securities Index. Compensation is not based on the level of fund assets.

Ownership of Securities

As of October 31, 2008, the portfolio managers did not beneficially own equity securities in the fund.

Transamerica Evergreen Health Care

Registered Investment

Other Pooled Investment

Companies

Vehicles

Other Accounts

Assets

Assets

Assets

Portfolio Manager

Number

Managed

Number

Managed

Number

Managed

Robert Junkin

6

$969.9 million

1

$10 million

5

$45.1 million

Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)

Robert Junkin

0

$

0

0

$

0

0

$

0

Transamerica Evergreen International Small Cap

	Registered Investment				Other Pooled Investment
	Companies				Vehicles			Other Accounts
			Assets				Assets			Assets
Portfolio Manager	Number		Managed		Number		Managed	Number		Managed
Francis Claro		7	$2.0 billion			1	$42.4 million		8	$207.6 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Francis Claro		0	$	0		1	$42.4 million		0	$	0

Conflict of Interest

The portfolio managers generally face two types of conflicts of interest: (1) conflicts between and among the interests of the various accounts they manage, and (2) conflicts between the interests of the accounts they manage and their own personal interests. The policies of Evergreen require that portfolio managers treat all accounts they manage equitably and fairly in the face of such real or potential conflicts.

The management of multiple funds and other accounts may require the portfolio manager to devote less than all of his or her time to a fund, particularly if the funds and accounts have different objectives, benchmarks and time horizons. The portfolio manager may also be required to allocate his or her investment ideas across multiple funds and accounts. In addition, if a portfolio manager identifies a limited investment opportunity, such as an initial public offering that may be suitable for more than one fund or other account, a fund may not be able to take full advantage of that opportunity due to an allocation of that investment across all eligible funds and accounts. Further, security purchase and sale orders for multiple accounts often are aggregated for purpose of execution. Although such aggregation generally benefits clients, it may cause the price or brokerage costs to be less favorable to a particular client than if similar transactions were not being executed concurrently for other accounts. It may also happen that a fund’s adviser or sub-adviser will determine that it would be in the best interest, and consistent with the investment policies, of another account to sell a security (including by means of a short sale) that a fund holds long, potentially resulting in a decrease in the market value of the security held by the fund.

Evergreen does not receive a performance fee for its management of the funds. Evergreen does receive a performance fee for its management of Evergreen Large Cap Equity Fund and certain privately offered pooled investment vehicles. Evergreen and/or a portfolio manager may have an incentive to allocate favorable or limited opportunity investments or structure the timing of investments to favor accounts other than the funds – for instance, those that pay a higher advisory fee and/or have a performance fee. The policies of Evergreen however, require that portfolio managers treat all accounts they manage equitably and fairly.

As noted above, portfolio managers may also experience certain conflicts between the interests of the accounts they manage and their own personal interests (which may include interests in advantaging Evergreen or a sub-adviser). The structure of a portfolio manager’s or an investment adviser’s compensation may create an incentive for the manager or adviser to favor accounts whose performance has a greater impact on such compensation. The portfolio manager may, for example, have an incentive to allocate favorable or limited opportunity investments or structure the timing of investments to favor such accounts. Similarly, if a portfolio manager holds a larger personal investment in one fund than he or she does in another, the portfolio manager may have an incentive to favor the fund in which he or she holds a larger stake.

B-11

In general, Evergreen has policies and procedures to address the various potential conflicts of interest described above. Each adviser has policies and procedures designed to ensure that portfolio managers have sufficient time and resources to devote to the various accounts they manage. Similarly, each firm has policies and procedures designed to ensure that investments and investment opportunities are allocated fairly across accounts, and that the interests of client accounts are placed ahead of a portfolio manager’s personal interests. However, there is no guarantee that such procedures will detect or address each and every situation where a conflict may arise.

Compensation

For Evergreen, portfolio managers’ compensation consists primarily of a base salary and an annual bonus. Each portfolio manager’s base salary is reviewed annually and adjusted based on consideration of various factors specific to the individual portfolio manager, including, among others, experience, quality of performance record and breadth of management responsibility, and a comparison to competitive market data provided by external compensation consultants. The annual bonus pool for portfolio managers and other employees that are eligible to receive bonuses is determined based on the overall profitability of the firm during the relevant year. Certain portfolio managers may have bonuses predetermined at certain amounts for certain periods of time.

The annual bonus has an investment performance component, which accounts for a majority of the annual bonus, and a subjective evaluation component. The bonus is typically paid in a combination of cash and equity incentive awards (non-qualified stock options and/or restricted stock) in Wachovia Corporation (Wells Fargo & Company after December 31, 2008), Evergreen’s and Evergreen International’s publicly traded parent company. The amount of the investment performance component is based on the pre-tax investment performance of the funds and accounts managed by the individual (or one or more appropriate composites of such funds and accounts) over the prior five years compared to the performance over the same time period of an appropriate benchmark (typically a broad-based index or universe of external funds or managers with similar characteristics). See the information below relating to other funds and accounts managed by the portfolio managers for the specific benchmarks used in evaluating performance. In calculating the amount of the investment performance component, performance for the most recent year is weighted 25%, performance for the most recent three-year period is weighted 50% and performance for the most recent five-year period is weighted 25%. In general, the investment performance component is determined using a weighted average of investment performance of each product managed by the portfolio manager, with the weighting done based on the amount of assets the portfolio manager is responsible for in each such product. For example, if a portfolio manager was to manage a mutual fund with $400 million in assets and separate accounts totaling $100 million in assets, performance with respect to the mutual fund would be weighted 80% and performance with respect to the separate accounts would be weighted 20%. In certain cases, portfolio weights within the composite may differ from the actual weights as determined by assets. For example, a very small fund’s weight within a composite may be increased to create a meaningful contribution.

To be eligible for an investment performance related bonus, the time-weighted average percentile rank must be above the 50^th percentile. A portfolio manager has the opportunity to maximize the investment performance component of the incentive payout by generating performance at or above the 25^th percentile level.

In determining the subjective evaluation component of the bonus, each manager is measured against predetermined objectives and evaluated in light of other discretionary considerations. Objectives are set in several categories, including teamwork, participation in various assignments, leadership, and development of staff.

For calendar year 2007, the investment performance component of each portfolio manager’s bonus will be determined based on comparisons to the benchmarks (either to the individual benchmark or one or more composites of all or some of such benchmarks) indicated below. The benchmarks may change for purposes of calculating bonus compensation for calendar year 2008.

Evergreen portfolio managers that manage certain privately offered pooled investment vehicles may also receive a portion of the advisory fees and/or performance fees charged by Evergreen (or an affiliate of Evergreen) to such clients. Unless described in further detail below, none of the portfolio managers of the funds receives such compensation.

In addition to being compensated with an annual salary as described above, for calendar years 2007 and 2008, Francis Claro will also receive predetermined bonuses (consisting of cash and stock awards) in lieu of a bonus based on performance and subjective evaluation, provided he remains an active employee in good standing as of the time such awards are to be made. He also receives a portion of all management fees and performance fees charged to privately offered Evergreen funds for which he serves as portfolio manager.

In addition, portfolio managers may participate, at their election, in various benefits programs, including the following:

• medical, dental, vision and prescription benefits,

• life, disability and long-term care insurance,

• before-tax spending accounts relating to dependent care, health care, transportation and parking, and

• various other services, such as family counseling and employee assistance programs, prepaid or discounted legal services, health care advisory programs and access to discount retail services.

B-12

These benefits are broadly available to Evergreen employees. Senior level employees, including many portfolio managers but also including many other senior level executives, may pay more or less than employees that are not senior level for certain benefits, or be eligible for, or required to participate in, certain benefits programs not available to employees who are not senior level. For example, only senior level employees above a certain compensation level are eligible to participate in the Wachovia Corporation deferred compensation plan, and certain senior level employees are required to participate in the deferred compensation plan.

Ownership of Securities

As of October, 31, 2008, the portfolio managers did not beneficially own any equity securities in the funds.

Transamerica Federated Market Opportunity

	Registered Investment
	Companies				Other Pooled Investment Vehicles				Other Accounts
											Assets
Portfolio Manager	Number		Assets Managed		Number		Assets Managed		Number		Managed
Steven J. Lehman		3	$1.7 billion			1	$1 million+			0	$	0
Dana L. Meissner		0	$	0		0	$	0		0	$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Steven J. Lehman		0	$	0		0	$	0		0	$	0
Dana L. Meissner		0	$	0		0	$	0		0	$	0

Conflict of Interest

As a general matter, certain conflicts of interest may arise in connection with a portfolio manager’s management of a fund’s investments, on the one hand, and the investments of other accounts for which the portfolio manager is responsible, on the other. For example, it is possible that the various accounts managed could have different investment strategies that, at times, might conflict with one another to the possible detriment of the Fund. Alternatively, to the extent that the same investment opportunities might be desirable for more than one account, possible conflicts could arise in determining how to allocate them. Other potential conflicts might include conflicts created by specific portfolio manager compensation arrangements, and conflicts relating to selection of brokers or dealers to execute fund portfolio trades and/or specific uses of commissions from Fund portfolio trades (for example, research, or “soft dollars”). The Adviser has adopted policies and procedures and has structured the portfolio managers’ compensation in a manner reasonably designed to safeguard the Fund from being negatively affected as a result of any such potential conflicts.

Compensation

Steven Lehman is paid a fixed base salary and a variable annual incentive. Base salary is determined within a market competitive position-specific salary range, based on the portfolio manager’s experience and performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and, to a lesser extent, Financial Success, and may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Investors, Inc. (Federated). The total combined annual incentive opportunity is intended to be competitive in the market for this portfolio manager role.

Dana L. Meissner is paid a fixed base salary and a variable annual incentive. Base salary is determined within a market competitive position-specific salary range, based on the portfolio manager’s experience and performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and, to a lesser extent, Financial Success, and may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Investors, Inc. (Federated). The total combined annual incentive opportunity is intended to be competitive in the market for this portfolio manager role.

IPP is measured on a rolling 1, 3, and 5 calendar year pre-tax total return basis vs. the Fund’s designated peer group of comparable accounts and vs. the Fund’s benchmark (i.e., 70% Russell 3000 Value Index/30% Merrill Lynch 91 Day Treasury Bill Index). In addition, IPP will also be measured on a rolling 1, 3, and 5 calendar year pre-tax total return basis vs. the adjusted performance of the Merrill Lynch 91 Day Treasury Bill Index. Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with less than one-year of performance history under a portfolio manager may be excluded. As noted above, Steven Lehman is also the portfolio manager for other accounts in addition to the fund. Such other accounts may have different benchmarks. Within each performance measurement period, IPP is calculated with an equal weighting of each included account managed by the portfolio manager. A portion of the bonus tied to the IPP score maybe adjusted based on management’s assessment of overall contributions to fund performance and any other factors as deemed relevant.

The Financial Success category is designed to tie the portfolio manager’s bonus, in part, to Federated’s overall financial results. Funding for the Financial Success category maybe determined on a product or asset class basis, as well as on corporate financial results. Senior Management determines individual Financial Success bonuses on a discretionary basis, considering overall contributions and any other factors deemed relevant.

Ownership of Securities

As of October, 31, 2008, the portfolio managers did not beneficially own any equity securities in the fund.

B-13

Transamerica High Yield Bond

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Dave Halfpap		1	$456 million			0	$	0		7	$13.8 billion
Brad Beman		1	$457 million			2	$239 million			4	$3.1 billion
Ben Miller		1	$457 million			2	$239 million			4	$3.1 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Dave Halfpap		0	$	0		0	$	0		0	$	0
Brad Beman		0	$	0		0	$	0		0	$	0
Ben Miller		0	$	0		0	$	0		0	$	0

Conflicts of Interest

At AUIM, individual portfolio managers may manage multiple accounts for multiple clients. In addition to the sub-advisory management of the portfolio, AUIM manages separate accounts for institutions and individuals. AUIM manages potential conflicts between accounts through its allocation policies and procedures, internal review processes and oversight by senior management and its Management Review Committee. AUIM has developed trade allocation policies to address potential conflicts in situations where two or more accounts participate in investment decisions involving the same securities using procedures that it considers to be fair and equitable.

Compensation

As of October 31, 2008, Mr. Halfpap’s compensation is provided directly by the fund’s sub-adviser and not by the fund. The portfolio manager’s compensation consists of a fixed base salary, a variable performance incentive and certain stock options. The performance incentive is based on the following factors: business results for the AEGON business unit for which the portfolio manager manages an account, total return results for all accounts managed by the portfolio manager, performance in asset-liability management process for the AEGON business unit, performance on developing profitable investment strategy for AEGON, various projects undertaken during the year and AEGON USA annual earnings results. The portfolio manager participates in AEGON USA’s stock-settled stock option plan which typically grants a specified number of options annually. The portfolio manager participates in the sub-adviser’s deferred compensation plan, which is based on the same performance factors as the variable performance incentive compensation but payment of which is spread over a three-year period. The portfolio manager participates in the sub-adviser’s deferred compensation plan, which is based on the same performance factors as the variable performance incentive compensation but payment of which is spread over a three-year period.

As of October 31, 2008, Mr. Beman’s compensation is provided directly by the fund’s sub-adviser and not by the fund. The portfolio manager’s compensation consists of a fixed base salary, a variable performance incentive and certain stock options. The performance incentive is based on the following factors: the economic performance of the overall high yield asset class, including the performance of the fund’s assets; leadership and communication with clients; assisting with the sub-adviser’s strategic goals; and AEGON USA’s earnings results. The portfolio manager participates in AEGON USA’s stock-settled stock option plan which typically grants a specified number of options annually. The portfolio manager participates in the sub-adviser’s deferred compensation plan, which is based on the same performance factors as the variable performance incentive compensation but payment of which is spread over a three-year period.

As of October 31, 2008, Mr. Miller’s compensation is provided directly by the funds sub-adviser and not by the fund. The portfolio manager’s compensation consists of a fixed base salary, a variable performance incentive and certain stock options.  The performance incentive is based on the following factors:  the economic performance of the overall high yield asset class, including the performance of the fund’s assets; leadership and communication with clients; assisting with the sub-adviser’s strategic goals; and AEGON USA’s earnings results.  The portfolio manager participates in AEGON USA’s stock-settled stock option plan which typically grants a specified number of options annually. The portfolio manager participates in the sub-adviser’s deferred compensation plan, which is based on the same performance factors as the variable performance incentive compensation but payment of which is spread over a three-year period.

Ownership of Securities

As of October 31, 2008, the portfolio managers did not beneficially own any securities in the fund.

B-14

Transamerica Jennison Growth

	Registered Investment				Other Pooled Investment
	Companies				Vehicles					Other Accounts
			Assets					Assets					Assets
Portfolio Manager	Number		Managed		Number			Managed		Number			Managed
Blair Boyer		4	$1.64 billion			4		$314 million			23		$1.95 billion
Michael A. Del Balso		12	$6.78 billion			5		$797 million			9	(a)	$693 million
Spiros Segalas		16	$14 billion			2	(b)	$164 million			9	(b)	$1.46 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Blair Boyer		0	$	0		0		$	0		0		$	0
Michael A. Del Balso		0	$	0		0		$	0		0		$	0
Spiros Segalas		0	$	0		2	(c)	$49 million			1	(c)	$22 million

(a)	Other Accounts excludes the assets and number of accounts in wrap fee programs that are managed using mode portfolios.
(b)	Excludes performance fee accounts.
(c)	The portfolio manager only manages a portion of the accounts subject to a performance fee. The market value shown reflects the portion of those accounts managed by the portfolio manager.

Conflict of Interest

In managing other portfolios (including affiliated accounts), certain potential conflicts of interest may arise. Potential conflicts include, for example, conflicts among investment strategies, conflicts in the allocation of investment opportunities, or conflicts due to different fees. As part of its compliance program, Jennison has adopted policies and procedures that seek to address and minimize the effects of these conflicts.

Jennison’s portfolio managers typically manage multiple accounts. These accounts may include, among others, mutual funds, separately managed advisory accounts (assets managed on behalf of institutions such as pension funds, colleges and universities, foundations), commingled trust accounts, other types of unregistered commingled accounts (including hedge funds), affiliated single client and commingled insurance separate accounts, model nondiscretionary portfolios, and model portfolios used for wrap fee programs. Portfolio managers make investment decisions for each portfolio based on the investment objectives, policies, practices and other relevant investment considerations that the managers believe are applicable to that portfolio. Consequently, portfolio managers may recommend the purchase (or sale) of certain securities for one portfolio and not another portfolio. Securities purchased in one portfolio may perform better than the securities purchased for another portfolio. Similarly, securities sold from one portfolio may result in better performance if the value of that security declines. Generally, however, portfolios in a particular product strategy (e.g., large cap growth equity) with similar objectives are managed similarly. Accordingly, portfolio holdings and industry and sector exposure tend to be similar across a group of accounts in a strategy that have similar objectives, which tends to minimize the potential for conflicts of interest. While these accounts have many similarities, the investment performance of each account will be different primarily due to differences in guidelines, timing of investments, fees, expenses and cash flows.

Furthermore, certain accounts (including affiliated accounts) in certain investment strategies may buy or sell securities while accounts in other strategies may take the same or differing, including potentially opposite, position. For example, certain strategies may short securities that may be held long in other strategies. The strategies that sell a security short held long by another strategy could lower the price for the security held long. Similarly, if a strategy is purchasing a security that is held short in other strategies, the strategies purchasing the security could increase the price of the security held short. Jennison has policies and procedures that seek to mitigate, monitor and manage this conflict.

In addition, Jennison has adopted trade aggregation and allocation procedures that seek to treat all clients (including affiliated accounts) fairly and equitably. These policies and procedures address the allocation of limited investment opportunities, such as IPOs and the allocation of transactions across multiple accounts. Some accounts have higher fees, including performance fees, than others. Fees charged to clients may differ depending upon a number of factors including, but not limited to, the particular strategy, the size of the portfolio being managed, the relationship with the client, the service requirements and the asset class involved. Fees may also differ based on the account type (e.g., commingled accounts, trust accounts, insurance company separate accounts or corporate, bank or trust-owned life insurance products). Some accounts, such as hedge funds and alternative strategies, have higher fees, including performance fees, than others. Based on these factors, a client may pay higher fees than another client in the same strategy. Also, clients with larger assets under management generate more revenue for Jennison than smaller accounts. These differences may give rise to a potential conflict that a portfolio manager may favor the higher fee-paying account over the other or allocate more time to the management of one account over another.

Furthermore, if a greater proportion of a portfolio manager’s compensation could be derived from an account or group of accounts, which include hedge fund or alternative strategies, than other accounts under the portfolio manager’s management, there could be an incentive for the portfolio manager to favor the accounts that could have a greater impact on the portfolio manager’s compensation. While Jennison does not monitor the specific amount of time that a portfolio manager spends on a single portfolio, senior Jennison personnel periodically review the performance of Jennison’s portfolio managers as well as periodically assess whether the portfolio manager has adequate resources to effectively manage the accounts assigned to that portfolio manager. Jennison also believes that its compensation structure tends to mitigate this conflict.

B-15

Compensation

Jennison seeks to maintain a highly competitive compensation program designed to attract and retain outstanding investment professionals which include portfolio managers and research analysts, and to align the interests of its investment professionals with those of its clients and overall firm results. Overall firm profitability determines the total amount of incentive compensation pool that is available for investment professionals. Investment professionals are compensated with a combination of base salary and discretionary cash bonus. In general, the cash bonus comprises the majority of the compensation for investment professionals. Additionally, senior investment professionals, including portfolio managers and senior research analysts, are eligible to participate in a voluntary deferred compensation program where all or a portion of the discretionary cash bonus can be deferred. Participants in the deferred compensation plan are permitted to allocate the deferred amounts among various options that track the gross of fee pre-tax performance of various mutual funds, of which nearly all of the equity options are managed by Jennison, and composites of accounts managed by Jennison, which may include accounts managed for unregistered products.

Investment professionals’ total compensation is determined through a subjective process that evaluates numerous qualitative and quantitative factors. There is no particular weighting or formula for considering the factors. Some portfolio managers may manage or contribute ideas to more than one product strategy and are evaluated accordingly.

The following factors will be reviewed for each portfolio manager: one and three year pre-tax investment performance of groupings of accounts (a “Composite”) relative to market conditions, pre-determined passive indices, such as the Russell 1000^® Growth Index and industry peer group data for the product strategy (e.g., large cap growth, large cap value) for which the portfolio manager is responsible; historical and long-term business potential of the product strategies; qualitative factors such as teamwork and responsiveness; and other factors such as experience and other responsibilities such as being a team leader or supervisor may also affect an investment professional’s total compensation.

Ownership of Securities

As of October 31, 2008, Blair Boyer, Michael Del Balso and Spiros Segalas did not beneficially own any equity securities in the fund.

Transamerica JPMorgan Core Bond

Registered Investment

Other Pooled Investment

(as of December 31, 2008)

Companies

Vehicles

Other Accounts

Assets

Assets

Assets

Portfolio Manager

Number

Managed

Number

Managed

Number

Managed

Douglas S. Swanson

7

$9.85 billion

7

$4.54 billion

52

$6.99 billion

Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)

Douglas S. Swanson

0

$

0

0

$

0

0

$0

Transamerica JPMorgan International Bond

	Registered Investment				Other Pooled Investment
	Companies				Vehicles			Other Accounts
			Assets				Assets			Assets
Portfolio Manager	Number		Managed		Number		Managed	Number		Managed
Jon B. Jonsson		2	$1.7 billion			38	$4.1 billion		32	$11.2 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Jon B. Jonsson		0	$	0		1	$23 million		1	$276 million

Transamerica JPMorgan Mid-Cap Value

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Jonathan Simon		14	$6.1 billion			3	$880 million			28	$1.8 billion
Lawrence Playford		9	$5.4 billion			0	$	0		24	$1.8 billion
Gloria Fu		9	$5.4 billion			0	$	0		24	$1.8 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Jonathan Simon		0	$	0		0	$	0		0	$	0
Lawrence Playford		0	$	0		0	$	0		0	$	0
Gloria Fu		0	$	0		0	$	0		0	$	0

B-16

Conflict of Interest

The potential for conflicts of interest exists when portfolio managers manage Other Accounts with similar investment objectives and strategies as the funds. Potential conflicts may include, for example, conflicts between investment strategies and conflicts in the allocation of investment opportunities.

Responsibility for managing JPMorgan’s and its affiliates clients’ portfolios is organized according to investment strategies within asset classes. Generally, client portfolios with similar strategies are managed by portfolio managers in the same portfolio management group using the same objectives, approach and philosophy. Underlying sectors or strategy allocations within a larger portfolio are likewise managed by portfolio managers who use the same approach and philosophy as similarly managed portfolios. Therefore, portfolio holdings, relative position sizes and industry and sector exposures tend to be similar across similar portfolios and strategies, which minimize the potential for conflicts of interest.

JPMorgan and/or its affiliates may receive more compensation with respect to certain Other Accounts than that received with respect to the funds or may receive compensation based in part on the performance of certain Other Accounts. This may create a potential conflict of interest for JPMorgan and its affiliates or its portfolio managers by providing an incentive to favor these Other Accounts when, for example, placing securities transactions. In addition, JPMorgan or its affiliates could be viewed as having a conflict of interest to the extent that JPMorgan or an affiliate has a proprietary investment in Other Accounts, the portfolio managers have personal investments in Other Accounts or the Other Accounts are investment options in JPMorgan’s or its affiliate’s employee benefit plans. Potential conflicts of interest may arise with both the aggregation and allocation of securities transactions and allocation of investment opportunities because of market factors or investment restrictions imposed upon JPMorgan and its affiliates by law, regulation, contract or internal policies. Allocations of aggregated trades, particularly trade orders that were only partially completed due to limited availability and allocation of investment opportunities generally, could raise a potential conflict of interest, as JPMorgan or its affiliates may have an incentive to allocate securities that are expected to increase in value to favored accounts. Initial public offerings, in particular, are frequently of very limited availability. JPMorgan and its affiliates may be perceived as causing accounts they manage to participate in an offering to increase JPMorgan’s or its affiliates’ overall allocation of securities in that offering.

A potential conflict of interest also may be perceived to arise if transactions in one account closely follow related transactions in a different account, such as when a purchase increases the value of securities previously purchased by another account, or when a sale in one account lowers the sale price received in a sale by a second account. If JPMorgan or its affiliates manages accounts that engage in short sales of securities of the type in which the funds invest, JPMorgan or its affiliates could be seen as harming the performance of the funds for the benefit of the accounts engaging in short sales if the short sales cause the market value of the securities to fall.

As an internal policy matter, JPMorgan may from time to time maintain certain overall investment limitations on the securities positions or positions in other financial instruments JPMorgan or its affiliates will take on behalf of its various clients due to, among other things, liquidity concerns and regulatory restrictions. Such policies may preclude an account from purchasing particular securities or financial instruments, even if such securities or financial instruments would otherwise meet the account’s objectives.

The goal of JPMorgan and its affiliates is to meet their fiduciary obligation with respect to all clients. JPMorgan and its affiliates have policies and procedures designed to manage conflicts. JPMorgan and its affiliates monitor a variety of areas, including compliance with fund guidelines, review of allocation decisions and compliance with JPMorgan’s Codes of Ethics and JPMorgan Chase & Co.’s Code of Conduct. With respect to the allocation of investment opportunities, JPMorgan and its affiliates also have certain policies designed to achieve fair and equitable allocation of investment opportunities among its clients over time. For example:

Orders for the same equity security traded through a single trading desk or system are aggregated on a continual basis throughout each trading day consistent with JPMorgan’s and its affiliates duty of best execution for its clients. If aggregated trades are fully executed, accounts participating in the trade will be allocated their pro rata share on an average price basis. Partially completed orders generally will be allocated among the participating accounts on a pro-rata average price basis, subject to certain limited exceptions. For example, accounts that would receive a de minims allocation relative to their size may be excluded from the order. Another exception may occur when thin markets or price volatility require that an aggregated order be completed in multiple executions over several days. If partial completion of the order would result in an uneconomic allocation to an account due to fixed transaction or custody costs, JPMorgan or its affiliates may exclude small orders until 50% of the total order is completed. Then the small orders will be executed. Following this procedure, small orders will lag in the early execution of the order, but will be completed before completion of the total order.

Purchases of money market instruments and fixed income securities cannot always be allocated pro rata across the accounts with the same investment strategy and objective. However, JPMorgan and its affiliates attempt to mitigate any potential unfairness by basing non-pro rata allocations traded through a single trading desk or system upon an objective predetermined criteria for the selection of investments and a disciplined process for allocating securities with similar duration, credit quality and liquidity in the good faith judgment of JPMorgan or its affiliates so that fair and equitable allocation will occur over time.

Compensation

J.P. Morgan Investment Management Inc. (“JPMorgan’’)’s Portfolio managers participate in a competitive compensation program that is designed to attract and retain outstanding people and closely link the performance of investment professionals to client investment objectives. The total compensation program includes a base salary fixed from year to year and a variable performance bonus consisting of cash incentives and restricted stock and may include mandatory notional investments (as described below) in selected mutual funds advised by JPMorgan or its affiliates. These elements reflect individual performance and the performance of JPMorgan’s business as a whole.

B-17

Each portfolio manager’s performance is formally evaluated annually based on a variety of factors including the aggregate size and blended performance of the portfolios such portfolio manager manages. Individual contribution relative to client goals carries the highest impact. Portfolio manager compensation is primarily driven by meeting or exceeding clients’ risk and return objectives, relative performance to competitors or competitive indices and compliance with firm policies and regulatory requirements. In evaluating each portfolio manager’s performance with respect to the mutual funds he or she manages, the funds’ pre-tax performance is compared to the appropriate market peer group and to each fund’s benchmark index listed in the fund’s prospectus over one, three and five year periods (or such shorter time as the portfolio manager has managed the fund). Investment performance is generally more heavily weighted to the long term.

Awards of restricted stock are granted as part of an employee’s annual performance bonus and comprise from 0% to 35% of a portfolio manager’s total bonus. As the level of incentive compensation increases, the percentage of compensation awarded in restricted stock also increases. Up to 50% of the restricted stock portion of a portfolio manager’s bonus may instead be subject to a mandatory notional investment in selected mutual funds advised by the Adviser or its affiliates. When these awards vest over time, the portfolio manager receives cash equal to the market value of the notional investment in the selected mutual funds.

Ownership of Securities

As of the date of this SAI, the portfolio managers did not beneficially own any equity securities in the funds.

Transamerica Legg Mason Partners All Cap

	Registered Investment				Other Pooled Investment
	Companies				Vehicles			Other Accounts
			Assets				Assets			Assets
Portfolio Manager	Number		Managed		Number		Managed	Number		Managed
John Goode		6	$3.36 billion			3	$0.18 billion		36,483	$6.06 billion
Peter Hable		8	$4.42 billion			3	$0.18 billion		36,483	$6.06 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
John Goode		0	$	0		1	$0.01 billion		0	$	0
Peter Hable		0	$	0		1	$0.01 billion		0	$	0

Conflicts of Interest

Potential conflicts of interest may arise when a fund’s portfolio manager has day-to-day management responsibilities with respect to one or more other funds or other accounts, as is the case for certain of the portfolio managers listed in the table above.

The investment adviser and the fund(s) have adopted compliance policies and procedures that are designed to address various conflicts of interest that may arise for the investment adviser and the individuals that it employs. For example, ClearBridge seeks to minimize the effects of competing interests for the time and attention of portfolio managers by assigning portfolio managers to manage funds and accounts that share a similar investment style. ClearBridge has also adopted trade allocation procedures that are designed to facilitate the fair allocation of limited investment opportunities among multiple funds and accounts. There is no guarantee, however, that the policies and procedures adopted by ClearBridge and the fund(s) will be able to detect and/or prevent every situation in which an actual or potential conflict may appear.

These potential conflicts include:

Allocation of Limited Time and Attention. A portfolio manager who is responsible for managing multiple funds and/or accounts may devote unequal time and attention to the management of those funds and/or accounts. As a result, the portfolio manager may not be able to formulate as complete a strategy or identify equally attractive investment opportunities for each of those accounts as might be the case if he or she were to devote substantially more attention to the management of a single fund. The effects of this potential conflict may be more pronounced where funds and/or accounts overseen by a particular portfolio manager have different investment strategies.

Allocation of Limited Investment Opportunities. If a portfolio manager identifies a limited investment opportunity that may be suitable for multiple funds and/or accounts, the opportunity may be allocated among these several funds or accounts, which may limit a fund’s ability to take full advantage of the investment opportunity.

Pursuit of Differing Strategies. At times, a portfolio manager may determine that an investment opportunity may be appropriate for only some of the funds and/or accounts for which he or she exercises investment responsibility, or may decide that certain of the funds and/or accounts should take differing positions with respect to a particular security. In these cases, the portfolio manager may place separate transactions for one or more funds or accounts which may affect the market price of the security or the execution of the transaction, or both, to the detriment or benefit of one or more other funds and/or accounts.

B-18

Variation in Compensation. A conflict of interest may arise where the financial or other benefits available to the portfolio manager differ among the funds and/or accounts that he or she manages. If the structure of the investment adviser’s management fee and/or the portfolio manager’s compensation differs among funds and/or accounts (such as where certain funds or accounts pay higher management fees or performance-based management fees), the portfolio manager might be motivated to help certain funds and/or accounts over others. The portfolio manager might be motivated to favor funds and/or accounts in which he or she has an interest or in which the investment advisor and/or its affiliates have interests. Similarly, the desire to maintain or raise assets under management or to enhance the portfolio manager’s performance record or to derive other rewards, financial or otherwise, could influence the portfolio manager to lend preferential treatment to those funds and/or accounts that could most significantly benefit the portfolio manager.

Selection of Broker/Dealers. Portfolio managers may be able to select or influence the selection of the brokers and dealers that are used to execute securities transactions for the funds and/or accounts that they supervise. In addition to executing trades, some brokers and dealers provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934), which may result in the payment of higher brokerage fees than might otherwise be available. These services may be more beneficial to certain funds or accounts than to others. Although the payment of brokerage commissions is subject to the requirement that the sub-adviser determines in good faith that the commissions are reasonable in relation to the value of the brokerage and research services provided to the fund, a decision as to the selection of brokers and dealers could yield disproportionate costs and benefits among the funds and/or accounts managed. For this reason, the sub-adviser has formed a brokerage committee that reviews, among other things, the allocation of brokerage to broker/dealers, best execution and soft dollar usage.

Related Business Opportunities. The investment adviser or its affiliates may provide more services (such as distribution or recordkeeping) for some types of funds or accounts than for others. In such cases, a portfolio manager may benefit, either directly or indirectly, by devoting disproportionate attention to the management of fund and/or accounts that provide greater overall returns to the investment manager and its affiliates.

Compensation

ClearBridge investment professionals receive base salary, other employee benefits and are eligible to receive incentive compensation. Base salary is fixed and typically determined based on market factors and the skill and experience of individual investment personnel.

ClearBridge has incentive and deferred compensation plans (the “Plans”) for its investment professionals, including the fund’s portfolio manager(s) and research analysts. The Plans are designed to align the objectives of ClearBridge investment professionals with those of fund shareholders and other ClearBridge clients. Additionally, the deferred plans are designed to retain its investment professionals and reward long-term performance.

Incentive Compensation

Investment performance is the key component in determining the final incentive award for all of ClearBridge’s investment professionals. A portfolio manager’s initial incentive award is based on the investment professional’s ongoing contribution to ClearBridge’s investment and business results and externally measured competitive pay practices for the portfolio manager’s position/experience within the firm. This award is then adjusted upward or downward based on investment performance during the most recent year over a rolling 1, 3, and 5 year time period. Product performance is ranked among a “peer group” of non-ClearBridge investment managers and the applicable product benchmark (e.g. a securities index and, with respect to a fund, the benchmark set forth in the fund’s prospectus to which the fund’s average annual total returns are compared).

The peer group of non-ClearBridge investment managers is defined by product style/type, vehicle type and geography and selected by independent vendors that track and provide (for a fee paid by ClearBridge) relevant peer group performance and ranking data (e.g. primarily Lipper or Callan).

The 1, 3, and 5 year performance versus benchmark and peer group approximate effective weightings are 35% for trailing 1 year performance, 50% for trailing 3 year performance, and 15% for trailing 5 year performance.

Lastly, the incentive award for an investment professional may also be adjusted by ClearBridge’s Chief Investment Officer and Chief Operating Officer based on other qualitative factors such as contribution to the firm and the development of investment staff.

For ClearBridge’s centralized research professionals, there is an annual incentive compensation plan with a combined scorecard based on portfolio manager questionnaires/surveys, stock picking performance, and contribution to the firm. The analyst’s stock picks are tracked on a formal basis through Factset and make up a portion of the analyst’s overall scorecard performance. These stock picks are measured versus their respective sector indices.

Deferred Award

Up to 20% of an investment professional’s annual incentive compensation is subject to deferral. For portfolio managers, one-quarter of this deferral is invested in their primary managed product, one-quarter in a composite portfolio of the firm’s new products, and one-quarter in up to 14 elected proprietary ClearBridge-managed funds. Consequently, portfolio managers potentially could have 50% of their deferred award amount tracking the performance of their primary managed product. The final one-quarter of the deferral is received in the form of Legg Mason restricted stock shares.

B-19

For centralized research analysts, one-half of their deferral is invested in up to 14 elected proprietary funds, while one-quarter is invested in the new product composite and the remaining one-quarter is received in the form of Legg Mason restricted stock shares.

Legg Mason then makes a company investment in the proprietary ClearBridge-managed funds equal to the deferral amounts by fund. This investment is a company asset held on the Legg Mason balance sheet and paid out to the employees in shares upon vesting over a four year deferral period.

Ownership of Securities

As of October 31, 2008, the portfolio managers did not beneficially own any equity securities in the fund.

Transamerica Loomis Sayles Bond

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
Portfolio Manager	Number		Assets Managed		Number		Assets Managed		Number		Assets Managed
Kathleen C. Gaffney		11	$26.1 billion			7	$2.5 billion			61	$3.5 billion
Daniel J. Fuss		13	$28.6 billion			4	$492 million			80	$7.5 billion
Matthew Eagan		10	$26.1 billion			11	$3.0 billion			64	$4.9 billion
Elaine Stokes		10	$26.1 billion			6	$2.2 billion			47	$1.7 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Kathleen C. Gaffney		0	$	0		0	$	0		1	$140 million
Daniel J. Fuss		0	$	0		0	$	0		4	$669 million
Matthew Eagan		0	$	0		0	$	0		1	$214 million
Elaine Stokes		0	$	0		0	$	0		1	$140 million

Conflict of Interest

The fact that a portfolio manager manages a mutual fund as well as other accounts creates the potential for conflicts of interest. A portfolio manager potentially could give favorable treatment to some accounts for a variety of reasons, including favoring larger accounts, accounts that pay higher fees, accounts that pay performance-based fees or accounts of affiliated companies. Such favorable treatment could lead to more favorable investment opportunities for some accounts. Loomis Sayles makes investment decisions for all accounts (including institutional accounts, mutual funds, hedge funds and affiliated accounts) based on each account’s specific investment objectives, guidelines, restrictions and circumstances and other relevant factors, such as the size of an available investment opportunity, the availability of other comparable investment opportunities and Loomis Sayles’ desire to treat all accounts fairly and equitably over time. In addition, Loomis Sayles maintains trade allocation and aggregation policies and procedures to address this potential conflict.

Compensation

Loomis Sayles believes that portfolio manager compensation should be driven primarily by the delivery of consistent and superior long-term performance for its clients. Portfolio manager compensation is made up of three main components — base salary, variable compensation and a long-term incentive program. Although portfolio manager compensation is not directly tied to assets under management, a portfolio manager’s base salary and/or variable compensation potential may reflect the amount of assets for which the manager is responsible relative to other portfolio managers. Loomis Sayles also offers a profit sharing plan.

Base salary is a fixed amount based on a combination of factors including industry experience, firm experience, job performance and market considerations.

Variable compensation is an incentive-based component and generally represents a significant multiple of base salary. It is based on four factors — investment performance, profit growth of the firm, profit growth of the manager’s business unit and team commitment. Investment performance is the primary component and generally represents at least 60% of the total for fixed income managers. The other three factors are used to determine the remainder of variable compensation, subject to the discretion of the group’s Chief Investment Officer (CIO) and senior management. The CIO and senior management evaluate these other factors annually.

While mutual fund performance and asset size do not directly contribute to the compensation calculation, investment performance is measured by comparing the performance of the firm’s institutional composite (pre-tax and net of fees) in the manager’s style to the performance of an external benchmark and a customized peer group. The benchmark used for the investment style utilized for Transamerica Loomis Sayles Bond is the Lehman Government/Credit Index. The customized peer group is created by the firm and is made up of institutional managers in the particular investment style. A manager’s relative performance for the past five years is used to calculate the amount of variable compensation payable due to performance. To ensure consistency, the firm analyzes the five-year performance on a rolling three-year basis. If a manager is responsible for more than one product, the rankings of each product are weighted based on relative asset size of accounts represented in each product.

Loomis Sayles uses both an external benchmark and a customized peer group as measuring sticks because it believes they represent an appropriate combination of the competitive fixed income product universe and the investment styles offered by the firm.

B-20

Loomis Sayles has developed and implemented two long-term incentive plans to attract and retain investment talent. These plans supplements existing compensation. The first plan has several important components distinguishing it from traditional equity ownership plans:

• the plan grants units that entitle participants to an annual payment based on a percentage of company earnings above an established threshold;

• upon retirement a participant will receive a multi-year payout for his or her vested units;

• participation is contingent upon signing an award agreement, which includes a non-compete covenant.

The second plan also is similarly constructed although the participants’ annual participation in company earnings is deferred for three years from the time of award and is only payable if the portfolio manager remains at Loomis Sayles. In this plan, there is no post-retirement payments or non-complete covenants.

Senior management expects that the variable compensation portion of overall compensation will continue to remain the largest source of income for those investment professionals included in the plan. The plan is initially offered to portfolio managers and over time the scope of eligibility is likely to widen. Management has full discretion on what units are issued and to whom.

Mr. Fuss’s compensation is also based on his overall contributions to the firm in his various roles as Senior Portfolio Manager, Vice Chairman and Director. As a result of these factors, the contribution of investment performance to Mr. Fuss’ total variable compensation may be significantly lower than the percentage reflected above. Mr. Fuss also received fixed payments related to his continued service with the firm. These payments were made by the parent company of Loomis Sayles pursuant to an agreement entered into at the time of the parent company’s acquisition of Loomis Sayles’ previous parent company.

Portfolio managers also participate in the Loomis Sayles profit sharing plan, in which Loomis Sayles makes a contribution to the retirement plan of each employee based on a percentage of base salary (up to a maximum amount). The portfolio managers also participate in the Loomis Sayles defined benefit pension plan, which applies to all Loomis Sayles employees who joined the firm prior to May 3, 2003. The defined benefit is based on years of service and base compensation (up to a maximum amount).

Ownership of Securities

As of October 31, 2008, the portfolio managers did not beneficially own any equity securities in the fund.

Transamerica Marsico Growth

Registered Investment

Other Pooled Investment

Companies

Vehicles

Other Accounts

Assets

Assets

Assets

Portfolio Manager

Number

Managed

Number

Managed

Number

Managed

Thomas F. Marsico

34

$23.3 million

20

$2.7 million

141

$17.8 million

Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)

Thomas F. Marsico

0

$

0

0

$

0

0

$

0

* One of the other accounts is a wrap fee platform which includes approx 25,148 underlying clients for total assets of approximately $6,998 million.

Transamerica Marsico International Growth

Registered Investment

Other Pooled Investment

Companies

Vehicles

Other Accounts

Assets

Assets

Assets

Portfolio Manager

Number

Managed

Number

Managed

Number

Managed

James G. Gendelman

20

$7.2 million

7

$1.1 million

19

$1.5 million

Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)

James G. Gendelman

0

$

0

0

$

0

0

$

0

Conflict of Interest

As a general matter, MCM faces the same need to balance the interests of different clients that any investment adviser with multiple clients might experience. Portfolio managers make investment decisions for each portfolio based on the investment objectives, policies, practices and other relevant investment considerations that the managers believe are applicable to that portfolio. Consequently, portfolio managers may purchase (or sell) securities for one portfolio and not another portfolio, or may take similar actions for different

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portfolios at different times. As a result, the mix of securities purchased in one portfolio may perform better than the mix of securities purchased for another portfolio. Similarly, the sale of securities from one portfolio may cause that portfolio to perform better than others if the value of those securities subsequently decline.

The need to balance the interests of multiple clients may also arise when allocating and/or aggregating trades. MCM often aggregates into a single trade order several individual contemporaneous client trade orders in a single security. Under MCM’s Portfolio Management and Trade Management Policy and Procedures, when trades are aggregated on behalf of more than one account, MCM seeks to allocate such trades to all participating client accounts in a fair and equitable manner. With respect to IPOs and other syndicated or limited offerings, it is MCM’s policy to seek to ensure that over the long term, accounts with the same or similar investment objectives will receive an equitable opportunity to participate meaningfully and will not be unfairly disadvantaged. To deal with these situations, MCM has adopted policies and procedures for allocating transactions across multiple accounts. MCM’s policies also seek to ensure that portfolio managers do not systematically allocate other types of trades in a manner that would be more beneficial to one account than another. MCM’s compliance department monitors transactions made on behalf of multiple clients to seek to ensure adherence to its policies.

MCM has adopted and implemented policies and procedures that seek to minimize potential conflicts of interest that may arise as a result of a portfolio manager advising multiple accounts. In addition, MCM monitors a variety of areas, including compliance with primary Fund guidelines, the allocation of securities, and compliance with its Code of Ethics.

Compensation

The compensation package for portfolio managers of MCM is structured as a combination of base salary (may be reevaluated at least annually), and periodic cash bonuses. Bonuses are typically based on a number of factors including MCM’s overall profitability for the period. Portfolio manager compensation takes into account, among other factors, the overall performance of all accounts for which the portfolio manager provides investment advisory services. In receiving compensation such as bonuses, portfolio managers do not receive special consideration based on the performance of particular accounts, and do not receive compensation from accounts charging performance-based fees. Exceptional individual efforts are rewarded through salary readjustments and greater participation in the bonus pool. No other special employee incentive arrangements are currently in place or being planned. In addition to salary and bonus, portfolio managers may participate in other MCM benefits to the same extent and on the same basis as other Marsico Capital employees. Portfolio manager compensation comes solely from MCM. In addition, MCM’s portfolio managers typically are offered equity interests in Marsico Management Equity, LLC, which indirectly owns MCM, and may receive distributions on those equity interests.

As a general matter, MCM does not tie portfolio manager compensation to specific levels of performance relative to fixed benchmarks. Although performance may be a relevant consideration, comparisons with fixed benchmarks may not always be useful. Relevant benchmarks vary depending on specific investment styles and client guidelines or restrictions, and comparisons to benchmark performance may at times reveal more about market sentiment than about a portfolio manager’s abilities. To encourage a long-term horizon for managing portfolios, MCM evaluates a portfolio manager’s performance over periods longer than the immediate compensation period, and may consider a variety of measures such as the performance of unaffiliated portfolios with similar strategies and other measurements. Other factors that may also be significant in determining portfolio manager compensation include, without limitation, the effectiveness of the manager’s leadership within MCM’s investment team, contributions to MCM’s overall performance, discrete securities analysis, idea generation, ability to support and train other analysts, and other considerations.

Ownership of Securities

As of October 31, 2008, neither of the portfolio managers beneficially owned equity securities in the funds. (MCM’s Code of Ethics does not permit covered employees, including portfolio managers, to invest in mutual funds sub-advised by MCM.)

Transamerica MFS International Equity

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
David R. Mannheim		15	$6.9 billion			5	$1.7 billion			94	$16.3 billion
Marcus Smith		11	$6.0 billion			0		N/A		28	$4.2 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
David R. Mannheim		0	$	0		0	$	0		12	$2.1 billion*
Marcus Smith		0	$	0		0	$	0		1	$286.2 million*

* Performance fees for any particular account are paid to MFS, not the portfolio manager, and the portfolio manager’s compensation is not determined by reference to the level of performance fees received by MFS.

Conflict of Interest

MFS seeks to identify potential conflicts of interest resulting from a portfolio manager’s management of both a Fund and other accounts, and has adopted policies and procedures designed to address such potential conflicts.

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The management of multiple funds and accounts (including proprietary accounts) gives rise to potential conflicts of interest if the funds and accounts have different objectives and strategies, benchmarks, time horizons and fees as a portfolio manager must allocate his or her time and investment ideas across multiple funds and accounts. In certain instances there are securities which are suitable for a fund’s portfolio as well as for accounts of MFS or its subsidiaries with similar investment objectives. A fund’s trade allocation policies may give rise to conflicts of interest if a fund’s orders do not get fully executed or are delayed in getting executed due to being aggregated with those of other accounts of MFS or its subsidiaries. A portfolio manager may execute transactions for another fund or account that may adversely impact the value of a fund’s investments. Investments selected for funds or accounts other than a fund may outperform investments selected for a fund.

When two or more clients are simultaneously engaged in the purchase or sale of the same security, the securities are allocated among clients in a manner believed by MFS to be fair and equitable to each. It is recognized that in some cases this system could have a detrimental effect on the price or volume of the security as far as a fund is concerned. In most cases, however, MFS believes that a fund’s ability to participate in volume transactions will produce better executions for the fund.

MFS and/or a portfolio manager may have a financial incentive to allocate favorable or limited opportunity investments or structure the timing of investments to favor accounts other than the fund, for instance, those that pay a higher advisory fee and/or have a performance adjustment.

Compensation

As of October 31, 2008, the MFS portfolio managers’ total cash compensation is a combination of base salary and performance bonus:

Base Salary — Base salary represents a smaller percentage of portfolio manager total cash compensation (generally below 10%) than performance bonus.

Performance Bonus — Generally, the performance bonus represents a majority of portfolio manager total cash compensation.

The performance bonus is based on a combination of quantitative and qualitative factors, with more weight given to the former (generally over 60%) and less weight given to the latter.

The quantitative portion is based on the pre-tax performance of assets managed by the portfolio manager over one-, three-, and five-year periods relative to peer group universes and/or indices (“benchmarks”). As of December 31, 2007, the following benchmarks were used:

Portfolio Manager	Benchmark(s)	Benchmark(s)
David R. Mannheim	FTSE All-World Developed Index	Lipper International Large-Cap Growth Funds
	FTSE All-World Index	Lipper Variable Global Core Funds
	Lipper Global Funds	MSCI EAFE Growth Index
	Lipper Global Large-Cap Core Funds	MSCI EAFE Index
	Lipper Global Multi-Cap Core Funds	MSCI KOKUSAI Index
	Lipper International Funds	MSCI World Index
	Lipper International Large-Cap Core Funds	Standard & Poor’s Developed LargeMidCap Growth Index
Marcus Smith	Europe Pacific Asia Composite	MSCI EAFE Growth Index
	FTSE All-World Developed Index	MSCI EAFE Index
	Lipper International Funds	MSCI World Index
	Lipper International Large-Cap Core Funds	MSCI Japan Index
	Lipper International Large-Cap Growth Funds	Standard & Poor’s Developed LargeMidCap Growth Index

Additional or different benchmarks, including versions of indices and custom indices may also be used. Primary weight is given to portfolio performance over a three-year time period with lesser consideration given to portfolio performance over one-year and five-year periods (adjusted as appropriate if the portfolio manager has served for less than five years).

The qualitative portion is based on the results of an annual internal peer review process (conducted by other portfolio managers, analysts, and traders) and management’s assessment of overall portfolio manager contributions to investor relations and the investment process (distinct from fund and other account performance).

Portfolio managers also typically benefit from the opportunity to participate in the MFS Equity Plan. Equity interests and/or options to acquire equity interests in MFS or its parent company are awarded by management, on a discretionary basis, taking into account tenure at MFS, contribution to the investment process, and other factors.

Finally, portfolio managers are provided with a benefits package including a defined contribution plan, health coverage and other insurance, which are available to other employees of MFS on substantially similar terms. The percentage such benefits represent of any portfolio manager’s compensation depends upon the length of the individual’s tenure at MFS and salary level, as well as other factors.

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Ownership of Securities

As of October 31, 2008, neither of the portfolio managers beneficially owned any equity securities in the fund.

Transamerica Neuberger Berman International

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Benjamin Segal		4	$1.3 billion			0	$	0		10,597	$3.8 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Benjamin Segal		0	$	0		0	$	0		0	$	0

Conflict of Interest

Certain conflicts of interest may arise in connection with the management of multiple portfolios. Potential conflicts could include, for example, conflicts in the allocation of investment opportunities and aggregated trading. The sub-adviser has adopted policies and procedures that are designed to minimize the effects of these conflicts.

Compensation

A portion of the compensation paid to the portfolio manager is determined by comparisons to pre-determined peer groups and benchmarks, as opposed to a system dependent on a percent of management fees. The portfolio manager is paid a base salary that is not dependent on performance. The portfolio manager also has a “target bonus,” which is set each year and can be increased or decreased prior to payment based in part on performance measured against the relevant peer group and benchmark. Performance is measured on a three-year rolling average in order to emphasize longer-term performance. There is also a subjective component to determining the bonus, which consists of the following factors: (i) the individual’s willingness to work with the marketing and sales groups; (ii) his effectiveness in building a franchise; and (iii) client servicing. Senior management determines this component in appropriate cases. There are additional components that comprise the portfolio manager’s compensation packages, including: (i) whether the manager was a partner/principal of NB prior to Neuberger Berman Inc.’s initial public offering; (ii) for more recent hires, incentives that may have been negotiated at the time the portfolio manager joined the Neuberger Berman complex; and (iii) the total amount of assets for which the portfolio manager is responsible.

Ownership of Securities

As of October 31, 2008, the portfolio manager did not beneficially own any equity securities in the fund.

Transamerica Oppenheimer Developing Markets

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
Portfolio Manager	Number		Assets Managed		Number		Assets Managed		Number		Assets Managed
Justin Leverenz		3	$6.47 billion			2	$125 million			5	$296 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Justin Leverenz		0	$	0		0	$	0		0	$	0

Transamerica Oppenheimer Small- & Mid-Cap Value

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
John Damian		3	$2.7 billion			0	$	0		0	$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
John Damian		0	$	0		0	$	0		0	$	0

Conflict of Interest

As indicated above, the portfolio manager also manages other funds and accounts. Potentially, at times, those responsibilities could conflict with the interests of the fund. That may occur whether the investment strategies of the other funds or accounts are the same as, or different from, the fund’s investment objectives and strategies. For example the portfolio manager may need to allocate investment opportunities between the fund and another fund or account having similar objectives or strategies, or they may need to execute

B-24

transactions for another fund or account that could have a negative impact on the value of securities held by the fund. Not all funds and accounts advised by the portfolio manager have the same management fee. If the management fee structure of another fund or account is more advantageous to the portfolio manager than the fee structure of the fund, the portfolio manager could have an incentive to favor the other fund or account. However, the sub-adviser’s compliance procedures and Code of Ethics recognize the portfolio manager’s fiduciary obligations to treat all of his clients, including the fund, fairly and equitably, and are designed to preclude the portfolio manager from favoring one client over another. It is possible, of course, that those compliance procedures and the Code of Ethics may not always be adequate to do so. At various times, the fund’s portfolio manager may manage other funds or accounts with investment objectives and strategies that are similar to those of the fund, or may manage funds or accounts with investment objectives and strategies that are different from those of the fund.

Compensation

As of October 31, 2008, the portfolio manager is employed and compensated by the sub-adviser, not the fund. Under the sub-adviser’s compensation program for its portfolio managers and portfolio analysts, their compensation is based primarily on the investment performance results of the funds and accounts they manage, rather than on the financial success of the sub-adviser. This is intended to align the portfolio managers and analysts’ interests with the success of the funds and accounts and their shareholders. The portfolio manager’s compensation consisted of three elements: a base salary, an annual discretionary bonus and eligibility to participate in long-term awards of options and appreciation rights in regard to the common stock of the sub-adviser’s holding company parent. Senior portfolio managers may also be eligible to participate in the sub-adviser’s deferred compensation plan. To help the sub-adviser attract and retain talent, the base pay component of each portfolio manager is reviewed regularly to ensure that it reflects the performance of the individual, is commensurate with the requirements of the particular portfolio, reflects any specific competence or specialty of the individual manager, and is competitive with other comparable positions. The annual discretionary bonus is determined by senior management of the sub-adviser and is based on a number of factors, including a fund’s pre-tax performance for periods of up to five years, measured against an appropriate Lipper benchmark selected by management. The Lipper benchmark with respect to Transamerica Oppenheimer Developing Markets is Lipper — Emerging Markets funds. The Lipper benchmark with respect to Transamerica Oppenheimer Small- & Mid-Cap Value is Lipper — Mid Cap Value Funds. Other factors considered include management quality (such as style consistency, risk management, sector coverage, team leadership and coaching) and organizational development. The portfolio manager’s compensation is not based on the total value of the fund’s portfolio assets, although the fund’s investment performance may increase those assets. The compensation structure is also intended to be internally equitable and serve to reduce potential conflicts of interest between the fund and other funds and accounts managed by the portfolio manager. The compensation structure of the other funds and accounts managed by the portfolio manager is the same as the compensation structure of the fund, described above.

Ownership of Securities

As of October 31, 2008, the portfolio managers did not beneficially own any equity securities in the funds.

Transamerica PIMCO Real Return TIPS

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Mihir Worah		21	$36.1 billion			27	$3.9 billion			63	$16.1 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Mihir Worah		0	$	0		0	$	0		15	$4.7 billion

Transamerica PIMCO Total Return

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Chris P. Dialynas		24	$4.6 billion			15	$7.3 billion			130	$47.9 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Chris P. Dialynas		0	$	0		0	$	0		15	$5.8 billion

Conflicts of Interest

From time to time, potential conflicts of interest may arise between a portfolio manager’s management of the investments of a fund, on the one hand, and the management of other accounts, on the other. The other accounts might have similar investment objectives or strategies as the funds, track the same index a fund tracks or otherwise hold, purchase, or sell securities that are eligible to be held, purchased or sold by the funds. The other accounts might also have different investment objectives or strategies than the funds.

B-25

Knowledge and Timing of Fund Trades. A potential conflict of interest may arise as a result of the portfolio manager’s day-to-day management of a fund. Because of their positions with the funds, the portfolio managers know the size, timing and possible market impact of a fund’s trades. It is theoretically possible that the portfolio managers could use this information to the advantage of other accounts they manage and to the possible detriment of a fund.

Investment Opportunities. A potential conflict of interest may arise as a result of the portfolio manager’s management of a number of accounts with varying investment guidelines. Often, an investment opportunity may be suitable for both a fund and other accounts managed by the portfolio manager, but may not be available in sufficient quantities for both the fund and the other accounts to participate fully. Similarly, there may be limited opportunity to sell an investment held by a fund and another account. PIMCO has adopted policies and procedures reasonably designed to allocate investment opportunities on a fair and equitable basis over time.

Under PIMCO’s allocation procedures, investment opportunities are allocated among various investment strategies based on individual account investment guidelines and PIMCO’s investment outlook. PIMCO has also adopted additional procedures to complement the general trade allocation policy that are designed to address potential conflicts of interest due to the side-by-side management of the funds and certain pooled investment vehicles, including investment opportunity allocation issues.

Performance Fees. A portfolio manager may advise certain accounts with respect to which the advisory fee is based entirely or partially on performance. Performance fee arrangements may create a conflict of interest for the portfolio manager in that the portfolio manager may have an incentive to allocate the investment opportunities that he or she believes might be the most profitable to such other accounts instead of allocating them to a fund. PIMCO has adopted policies and procedures reasonably designed to allocate investment opportunities between the funds and such other accounts on a fair and equitable basis over time.

Compensation

PIMCO has adopted a “Total Compensation Plan” for its professional level employees, including its portfolio managers, that is designed to pay competitive compensation and reward performance, integrity and teamwork consistent with the firm’s mission statement. The Total Compensation Plan includes a significant incentive component that rewards high performance standards, work ethic and consistent individual and team contributions to the firm. The compensation of portfolio managers consists of a base salary, a bonus, and may include a retention bonus. Portfolio managers who are Managing Directors of PIMCO also receive compensation from PIMCO’s profits. Certain employees of PIMCO, including portfolio managers, may elect to defer compensation through PIMCO’s deferred compensation plan. PIMCO also offers its employees a non-contributory defined contribution plan through which PIMCO makes a contribution based on the employee’s compensation. PIMCO’s contribution rate increases at a specified compensation level, which is a level that would include portfolio managers.

Salary and Bonus. Base salaries are determined by considering an individual portfolio manager’s experience and expertise and may be reviewed for adjustment annually. Portfolio managers are entitled to receive bonuses, which may be significantly more than their base salary, upon attaining certain performance objectives based on predetermined measures of group or department success. These goals are specific to individual portfolio managers and are mutually agreed upon annually by each portfolio manager and his or her manager. Achievement of these goals is an important, but not exclusive, element of the bonus decision process.

In addition, the following non-exclusive list of qualitative criteria (collectively, the “Bonus Factors”) may be considered when determining the bonus for portfolio managers:

• 3-year, 2-year and 1-year dollar-weighted and account-weighted, pre-tax investment performance as judged against the applicable benchmarks for each account managed by a portfolio manager (including the funds) and relative to applicable industry peer groups;

• Appropriate risk positioning that is consistent with PIMCO’s investment philosophy and the Investment Committee/CIO approach to the generation of alpha;

• Amount and nature of assets managed by the portfolio manager;

• Consistency of investment performance across portfolios of similar mandate and guidelines (reward low dispersion);

• Generation and contribution of investment ideas in the context of PIMCO’s secular and cyclical forums, portfolio strategy meetings, Investment Committee meetings, and on a day-to-day basis;

• Absence of defaults and price defaults for issues in the portfolios managed by the portfolio manager;

• Contributions to asset retention, gathering and client satisfaction;

• Contributions to mentoring, coaching and/or supervising; and

• Personal growth and skills added.

A portfolio manager’s compensation is not based directly on the performance of any fund or any other account managed by that portfolio manager. Final bonus award amounts are determined by the PIMCO Compensation Committee.

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Investment professionals, including portfolio managers, are eligible to participate in a Long Term Cash Bonus Plan (“Cash Bonus Plan”), which provides cash awards that appreciate or depreciate based upon the performance of PIMCO’s parent company, Allianz Global Investors, and PIMCO over a three-year period. The aggregate amount available for distribution to participants is based upon Allianz Global Investors’ profit growth and PIMCO’s profit growth. Participation in the Cash Bonus Plan is based upon the Bonus Factors, and the payment of benefits from the Cash Bonus Plan, is contingent upon continued employment at PIMCO.

Key employees of PIMCO, including certain Managing Directors, Executive Vice Presidents, and Senior Vice Presidents, are eligible to participate in the PIMCO Class M Unit Equity Participation Plan, a long-term equity plan. The Class M Unit Equity Participation Plan grants options on PIMCO equity that vest in years three, four and five. Upon vesting, the options will convert into PIMCO M Units, which are non-voting common equity of PIMCO. M Units pay out quarterly distributions equal to a pro-rata share of PIMCO’s net profits. There is no assured liquidity and they may remain outstanding perpetually.

Profit Sharing Plan. Instead of a bonus, portfolio managers who are Managing Directors of PIMCO receive compensation from a non-qualified profit sharing plan consisting of a portion of PIMCO’s net profits. Portfolio managers who are Managing Directors receive an amount determined by the Partner Compensation Committee, based upon an individual’s overall contribution to the firm and the Bonus Factors. Under his employment agreement, William Gross receives a fixed percentage of the profit sharing plan.

Allianz Transaction Related Compensation. In May 2000, a majority interest in the predecessor holding company of PIMCO was acquired by a subsidiary of Allianz AG (currently known as Allianz SE) (“Allianz”). In connection with the transaction, Mr. Gross received a grant of restricted stock of Allianz, the last of which vested on May 5, 2005.

Portfolio managers who are Managing Directors also have long-term employment contracts, which guarantee severance payments in the event of involuntary termination of a Managing Director’s employment with PIMCO.

Securities Ownership

As of October 31, 2008, the respective portfolio managers were not beneficial owners of shares of a fund that they managed.

Transamerica Schroders International Small Cap

	Registered Investment			Other Pooled Investment
	Companies			Vehicles			Other Accounts
						Assets			Assets
Portfolio Manager	Number		Assets Managed	Number		Managed	Number		Managed
Matthew Dobbs		9	$7.4 billion		8	$9.7 million		8	$1.8 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Matthew Dobbs		3	$6.8 billion		1	$228 million		0	$	0

Conflict of Interest

Whenever the portfolio manager of the fund manages other accounts, potential conflicts of interest exist, including potential conflicts between the investment strategy of the fund and the investment strategy of the other accounts. For example, in certain instances, a portfolio manager may take conflicting positions in a particular security for different accounts, by selling a security for one account and continuing to hold it for another account. In addition, the fact that other accounts require the portfolio manager to devote less than all of his or her time to the fund may be seen itself to constitute a conflict with the interest of the fund.

The portfolio manager may also execute transactions for another fund or account at the direction of such fund or account that may adversely impact the value of securities held by the fund. Securities selected for funds or accounts other than the fund may outperform the securities selected for the fund. Finally, if the portfolio manager identifies a limited investment opportunity that may be suitable for more than one fund or other account, the fund may not be able to take full advantage of that opportunity due to an allocation of that opportunity across all eligible funds and accounts. At Schroders, individual portfolio managers may manage multiple accounts for multiple clients. In addition to mutual funds, these other accounts may include separate accounts, collective trusts, or offshore funds. Certain of these accounts may pay a performance fee, and portfolio managers may have an incentive to allocate investment to these accounts.

Schroders manages potential conflicts between funds or with other types of accounts through allocation policies and procedures, internal review processes, and oversight by directors. Schroders has developed trade allocation systems and controls to ensure that no one client, regardless of type, is intentionally favored at the expense of another. Allocation policies are designed to address potential conflicts in situations where two or more funds or accounts participate in investment decisions involving the same securities.

The structure of the portfolio manager’s compensation may give rise to potential conflicts of interest. Each portfolio manager’s base pay tends to increase with additional and more complex responsibilities that include increased assets under management, which indirectly links compensation to sales.

Schroders has adopted certain compliance procedures that are designed to address these, and other, types of conflicts. However, there is no guarantee that such procedures will detect each and every situation where a conflict arises.

B-27

Compensation

Schroders fund managers are paid in a combination of base salary and annual bonus, as well as the standard retirement, health, and welfare benefits available to all of our employees. Certain of the most senior managers also participate in a long-term incentive program.

Base salary is determined by reference to the level of responsibility inherent in the role and the experience of the incumbent, and is benchmarked annually against market data to ensure that Schroders is paying competitively. The base salary is subject to an annual review, and will increase if market movements make this necessary and/or if there has been an increase in the employee’s responsibilities. At more senior levels, base salaries tend to move less as the emphasis is increasingly on the discretionary bonus.

Bonuses for fund managers, including Mr. Dobbs, may be comprised of an agreed contractual floor and/or a discretionary component. Any discretionary bonus is determined by a number of factors. At a macro level the total amount available to spend is a function of the compensation to revenue ratio achieved by the firm globally. Schroders then assess the performance of the division and of the team to determine the share of the aggregate bonus pool that is spent in each area. This focus on “team” maintains consistency and minimizes internal competition that may be detrimental to the interests of our clients. For individual fund managers, Schroders assess the performance of their funds relative to competitors and to the relevant benchmarks over one and three year periods, the level of funds under management, and the level of performance fees generated. Schroders also reviews “softer” factors such as leadership, contribution to other parts of the business, and adherence to our corporate values of excellence, integrity, teamwork, passion, and innovation.

For those employees receiving significant bonuses, a part may be deferred in the form of Schroders plc stock. These employees may also receive part of the deferred award in the form of notional cash investments in a range of Schroders’ funds. These deferrals vest over a period of three years and ensure that the interests of the employee are aligned with those of the shareholder and with those of investors. Over recent years, Schroders has increased the level of deferred awards and as a consequence these key employees have an increasing incentive to remain with Schroders as their store of unvested awards grows over time.

For the purposes of determining the portfolio manager’s bonus, the relevant external benchmarks for performance comparison includes a blend of international small cap benchmarks.

Ownership of Securities

As of October 31, 2008, the portfolio manager was not a beneficial owner of shares of the fund.

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Transamerica Balanced

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Gary U. Rollé (lead equity)		13	$4.17 billion			1	$88.2 million			80	$1.43 billion
Greg D. Haendel (lead fixed-income)		10	$2.17 billion			0	$	0		12	$650.9 million
Derek S. Brown (co-fixed-income)		1	$791.5 million			0	$	0		15	$1.56 billion
Geoffrey I. Edelstein (co-equity)		2	$171.8 million			1	$50.29 million			90	$128.5 million
Edward S. Han (co-equity)		4	$241.4 million			0	$	0		3	$228.6 million
John J. Huber (co-equity)		3	$228.2 million			1	$54.78 million			1	$88.98 million
Peter O. Lopez (co-fixed-income)		3	$236.4 million			1	$11.3 million			1	$23.56 million
Erik U. Rollé (co-equity)		0	$	0		1	$10.96 million			0	$	0
Brian W. Westhoff (co-fixed-income)		5	$301.2 million			0	$	0		1	$31.34 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Gary U. Rollé (lead equity)		0	$	0		0	$	0		0	$	0
Greg D. Haendel (lead fixed-income)		0	$	0		0	$	0		0	$	0
Derek S. Brown (co-fixed-income)		0	$	0		0	$	0		0	$	0
Geoffrey I. Edelstein (co-equity)		0	$	0		0	$	0		0	$	0
Edward S. Han (co-equity)		0	$	0		0	$	0		0	$	0
John J. Huber (co-equity)		0	$	0		0	$	0		0	$	0
Peter O. Lopez (co-fixed-income)		0	$	0		0	$	0		0	$	0
Erik U. Rollé (co-equity)		0	$	0		0	$	0		0	$	0
Brian W. Westhoff (co-fixed-income)		0	$	0		0	$	0		0	$	0

Transamerica Convertible Securities

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Kirk J. Kim (lead)		8	$670.8 million			0	$	0		4	$348.6 million
Peter O. Lopez (lead)		3	$236.4 million			1	$11.3 million			1	$23.56 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Kirk J. Kim (lead)		0	$	0		0	$	0		0	$	0
Peter O. Lopez (lead)		0	$	0		0	$	0		0	$	0

B-29

Transamerica Equity

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Gary U. Rollé (lead)		13	$4.17 billion			1	$88.2 million			80	$1.43 billion
Geoffrey I. Edelstein (co)		2	$171.8 million			1	$50.29 million			90	$128.5 million
Edward S. Han (co)		4	$241.4 million			0	$	0		3	$228.6 million
John J. Huber (co)		3	$228.2 million			1	$54.78 million			1	$88.98 million
Peter O. Lopez (co)		3	$236.4 million			1	$11.3 million			1	$23.56 million
Erik U. Rollé (co)		0	$	0		1	$10.96 million			0	$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Gary U. Rollé (lead)		0	$	0		0	$	0		0	$	0
Geoffrey I. Edelstein (co)		0	$	0		0	$	0		0	$	0
Edward S. Han (co)		0	$	0		0	$	0		0	$	0
John J. Huber (co)		0	$	0		0	$	0		0	$	0
Peter O. Lopez (co)		0	$	0		0	$	0		0	$	0
Erik U. Rollé (co)		0	$	0		0	$	0		0	$	0

Transamerica Flexible Income

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Brian W. Westhoff (lead)		5	$301.2 million			0	$	0		1	$31.34 million
Kirk J. Kim (lead)		8	$670.8 million			0	$	0		4	$348.6 million
Peter O. Lopez (lead)		3	$236.4 million			1	$11.3 million			1	$23.56 million
Derek S. Brown (co)		1	$791.5 million			0	$	0		15	$1.56 billion
Greg D. Haendel (co)		10	$2.17 billion			0	$	0		12	$650.9 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Brian W. Westhoff (lead)		0	$	0		0	$	0		0	$	0
Kirk J. Kim (lead)		0	$	0		0	$	0		0	$	0
Peter O. Lopez (lead)		0	$	0		0	$	0		0	$	0
Derek S. Brown (co)		0	$	0		0	$	0		0	$	0
Greg D. Haendel (co)		0	$	0		0	$	0		0	$	0

Transamerica Growth Opportunities

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Edward S. Han (lead)		4	$241.4 million			0	$	0		3	$228.6 million
John J. Huber (lead)		3	$228.2 million			1	$54.78 million			1	$88.98 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Edward S. Han (lead)		0	$	0		0	$	0		0	$	0
John J. Huber (lead)		0	$	0		0	$	0		0	$	0

B-30

Transamerica Money Market

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Greg D. Haendel (lead)		10	$2.17 billion			0	$	0		12	$650.9 million
Patty Arrieta-Morales (co)		0	$	0		0	$	0		0	$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Greg D. Haendel (lead)		0	$	0		0	$	0		0	$	0
Patty Arrieta-Morales (co)		0	$	0		0	$	0		0	$	0

Transamerica Science & Technology

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Kirk J. Kim (lead)		8	$670.8 million			0	$	0		4	$348.6 million
Jeffrey J. Hoo (co)		4	$819.7 million			1	$27.54 million			27	$194.6 million
Erik U. Rollé (co)		0	$	0		1	$10.96 million			0	$	0
Joshua D. Shaskan (co)		10	$1.05 billion			0	$	0		60	$282.6 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Kirk J. Kim (lead)		0	$	0		0	$	0		0	$	0
Jeffrey J. Hoo (co)		0	$	0		0	$	0		0	$	0
Erik U. Rollé (co)		0	$	0		0	$	0		0	$	0
Joshua D. Shaskan (co)		0	$	0		0	$	0		0	$	0

Transamerica Short-Term Bond

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Greg D. Haendel (lead)		10	$2.17 billion			0	$	0		12	$650.9 million
Derek S. Brown (co)		1	$791.5 million			0	$	0		15	$1.56 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Greg D. Haendel (lead)		0	$	0		0	$	0		0	$	0
Derek S. Brown (co)		0	$	0		0	$	0		0	$	0

B-31

Transamerica Small/Mid Cap Value

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Jeffrey J. Hoo (lead)		4	$819.7 million			1	$27.54 million			27	$194.6 million
Joshua D. Shaskan (lead)		10	$1.05 billion			0	$	0		60	$282.6 million
Thomas E. Larkin (co)		0	$	0		1	$11.02 million			0	$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Jeffrey J. Hoo (lead)		0	$	0		0	$	0		0	$	0
Joshua D. Shaskan (lead)		0	$	0		0	$	0		0	$	0
Thomas E. Larkin (co)		0	$	0		0	$	0		0	$	0

Transamerica Value Balanced

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Geoffrey I. Edelstein (lead-equity)		2	$171.8 million			1	$50.29 million			90	$128.5 million
Greg D. Haendel (lead-fixed-income)		10	$2.17 billion			0	$	0		12	$650.9 million
Derek S. Brown (co-fixed-income)		1	$791.5 million			0	$	0		15	$1.56 billion
Scott L. Dinsdale (co-equity)		0	$	0		0	$	0		0	$	0
Kirk R. Feldhus (co-equity)		0	$	0		1	$10.92 million			0	$	0
Brian W. Westhoff (co-equity)		5	$301.2 million			0	$	0		1	$31.34 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Geoffrey I. Edelstein (lead-equity)		0	$	0		0	$	0		0	$	0
Greg D. Haendel (lead-fixed-income)		0	$	0		0	$	0		0	$	0
Derek S. Brown (co-fixed-income)		0	$	0		0	$	0		0	$	0
Scott L. Dinsdale (co-equity)		0	$	0		0	$	0		0	$	0
Kirk R. Feldhus (co-equity)		0	$	0		0	$	0		0	$	0
Brian W. Westhoff (co-equity)		0	$	0		0	$	0		0	$	0

Transamerica Templeton Global

TIM:

	Registered Investment			Other Pooled Investment
	Companies			Vehicles				Other Accounts
			Assets			Assets				Assets
Portfolio Manager	Number		Managed	Number		Managed		Number		Managed
Gary Rollé (co)		13	$4.17 billion		1	$88.2 million			80	$1.43 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Gary Rollé (co)		0		$	0	$	0		0	$	0

B-32

Templeton:

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Tina Sadler		10	$4.2 billion			4	$109 million			32	$4.6 billion
Tony Docal		7	$6.1 billion			6	$768 million			49	$5.4 billion
Gary Motyl		11	$9.6 billion			8	$1.1 billion			47	$6.2 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Tina Sadler		0	$	0		0	$	0		1	$37.0 million
Tony Docal		0	$	0		1	$67.4 million			1	$37.0 million
Gary Motyl		0	$	0		1	$67.4 million			1	$37.0 million

Conflict of Interest — TIM

At TIM, individual portfolio managers may manage multiple accounts for multiple clients. In addition to the sub-advisory management of the Funds, TIM manages separate accounts for institutions and individuals. TIM manages potential conflicts between accounts through its allocation policies and procedures, internal review processes and oversight by senior management and its board of directors. TIM has developed trade allocation policies to address potential conflicts in situations where two or more accounts participate in investment decisions involving the same securities using procedures that it considers to be fair and equitable. As of October 31, 2008, TIM did not foresee any conflict of interest in the management of the funds.

Compensation — TIM

Portfolio managers, including the members of the executive team, are remunerated with a combination of base salary, performance-based bonus, and profit sharing or ownership interest. The overall compensation structure is reviewed annually for market competitiveness with an objective of offering compensation structures above the median as compared to our industry peers. For purposes of determining the level of performance-based compensation, potential track records (pre-tax) are based on full years of portfolio management for TIM. There are two weighted components taken into consideration for determining maximum incentive compensation amounts. These total 100% and consist of an objective and subjective component as further described below:

• 80% Objective-portfolio performance-based calculation; based upon relative rankings of track record and return formula criteria. A portion of the objective component is necessarily subjective taking into account such items as co/multi-management responsibilities; portfolio performance upon assignment; length of time managing portfolio; customized client benchmarks; etc., in determining the portfolio manager’s relative ranking. TIM’s senior management and its board of directors determine the criteria to be used for evaluating how the rankings are determined for each portfolio manager under this objective component.

• 20% Subjective-based upon additional contributions to the firm as a whole and consistent with responsibilities identified on position descriptions—for example, general research contribution, behavioral competencies (e.g. team contributions; decision making capabilities; work ethic), quality of investment ideas, managerial duties outside of core responsibility, as determined by the executive team.

Key investment personnel have ownership interests in TIM and are evaluated on an annual basis to determine additional allocations of ownership interest. Such interests entitle the owner to quarterly distribution of profits as well as certain liquidity features. The interests effectively vest over a determined time period so as to provide a retention incentive. This ownership feature is intended to create both stability and an entrepreneurial atmosphere at TIM.

Ownership of Securities — TIM

As of October 31, 2008, none of the portfolio managers beneficially owned shares in the respective funds.

Conflict of Interest — Templeton

The management of multiple funds and accounts may also give rise to potential conflicts of interest if the funds and other accounts have different objectives, benchmarks, time horizons, and fees as the portfolio manager must allocate his or her time and investment ideas across multiple funds and accounts. The manager seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most other accounts managed by a portfolio manager are managed using the same investment strategies that are used in connection with the management of the fund. Accordingly, portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar portfolios, which may minimize the potential for conflicts of interest. The separate management of the trade execution and valuation functions from the portfolio management process also helps to reduce potential conflicts of interest. However, securities selected for funds or accounts other than the fund may outperform the securities selected for the fund. Moreover, if a portfolio manager identifies a limited investment opportunity that may be suitable for more than one fund or other account, the fund may not be able to take full advantage of that opportunity due to an allocation of that opportunity across all eligible funds and other accounts. The manager seeks to manage such potential conflicts by using procedures intended to provide a fair allocation of buy and sell opportunities among funds and other accounts.

B-33

The structure of a portfolio manager’s compensation may give rise to potential conflicts of interest. A portfolio manager’s base pay and bonus tend to increase with additional and more complex responsibilities that include increased assets under management. As such, there may be an indirect relationship between a portfolio manager’s marketing or sales efforts and his or her bonus.

Finally, the management of personal accounts by a portfolio manager may give rise to potential conflicts of interest. While the funds and the manager have adopted a code of ethics which they believe contains provisions reasonably necessary to prevent a wide range of prohibited activities by portfolio managers and others with respect to their personal trading activities, there can be no assurance that the code of ethics addresses all individual conduct that could result in conflicts of interest.

The manager and the fund have adopted certain compliance procedures that are designed to address these, and other, types of conflicts. However, there is no guarantee that such procedures will detect each and every situation where a conflict arises.

Compensation — Templeton

Templeton seeks to maintain a compensation program that is competitively positioned to attract, retain and motivate top-quality investment professionals. Portfolio managers receive a base salary, a cash incentive bonus opportunity, an equity compensation opportunity, and a benefits package. Portfolio manager compensation is reviewed annually and the level of compensation is based on individual performance, the salary range for a portfolio manager’s level of responsibility and Franklin Templeton guidelines. Portfolio managers are provided no financial incentive to favor one fund or account over another. Each portfolio manager’s compensation consists of the following three elements:

Base salary — Each portfolio manager is paid a base salary.

Annual bonus — Annual bonuses are structured to align the interests of the portfolio manager with those of the fund’s shareholders. Each portfolio manager is eligible to receive an annual bonus. Bonuses generally are split between cash (50% to 65%) and restricted shares of Franklin Resources stock (17.5% to 25%) and mutual fund shares (17.5% to 25%). The deferred equity-based compensation is intended to build a vested interest of the portfolio manager in the financial performance of both Franklin Resources and mutual funds advised by the manager. The bonus plan is intended to provide a competitive level of annual bonus compensation that is tied to the portfolio manager achieving consistently strong investment performance, which aligns the financial incentives of the portfolio manager and fund shareholders. The Chief Investment Officer of the manager and/or other officers of the manager, with responsibility for the fund, have discretion in the granting of annual bonuses to portfolio managers in accordance with Franklin Templeton guidelines. The following factors are generally used in determining bonuses under the plan:

o Investment performance. Primary consideration is given to the historic investment performance over the 1, 3 and 5 preceding years of all accounts managed by the portfolio manager. The pre-tax performance of each fund managed is measured relative to a relevant peer group and/or applicable benchmark as appropriate.

o Research Where the portfolio management team also has research responsibilities, each portfolio manager is evaluated on the number and performance of recommendations over time, productivity and quality of recommendations, and peer evaluation.

o Non-investment performance. For senior portfolio managers, there is a qualitative evaluation based on leadership and the mentoring of staff.

o Responsibilities. The characteristics and complexity of funds managed by the portfolio manager are factored in the manager’s appraisal.

Additional long-term equity-based compensation — Portfolio managers may also be awarded restricted shares or units of Franklin Resources stock or restricted shares or units of one or more mutual funds, and options to purchase common shares of Franklin Resources stock. Awards of such deferred equity-based compensation typically vest over time, so as to create incentives to retain key talent.

Portfolio managers also participate in benefit plans and programs available generally to all employees of Templeton

Ownership of Securities — Templeton

As of October 31, 2008, the portfolio managers did not beneficially own any shares of equity securities in the fund.

B-34

Transamerica Third Avenue Value

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets					Assets
Portfolio Manager	Number		Managed		Number		Managed		Number			Managed
Curtis Jensen		5	$2.8 billion			0	$	0		4	*	$1 million
Yang Lie		0	$	0		0	$	0		6	*	$1 million
Kathleen Crawford		4	$1.4 billion			3	$350 million			0		$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Curtis Jensen		0	$	0		0	$	0		0		$	0
Yang Lie		0	$	0		0	$	0		0		$	0
Kathleen Crawford		0	$	0		0	$	0		0		$	0

* Ms. Lie manages six accounts totaling over $1 million in a personal capacity and receives no advisory fee for these accounts. Mr. Jensen manages four accounts totaling over $1 million in a personal capacity and receives no advisory fee for these accounts.

Conflict of Interest

Circumstances may arise under which Third Avenue Management LLC’s (the “Adviser”) determines that, while it would be both desirable and suitable that a particular security or other investment be purchased or sold for the account of more than one of its client accounts, there is a limited supply or demand for the security or other investment. Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized by the portfolio. The Adviser has adopted policies and procedures to monitor and manage these potential conflicts of interest to protect its clients’ interests.

Compensation

As of October 31, 2008, each portfolio manager receives a fixed base salary and a cash bonus, payable each year. A portion of the bonus is deferred, pursuant to a deferred compensation plan of the Sub-Adviser. The bonus is determined in the discretion of senior management of the Sub-Adviser, and is based on a qualitative analysis of several factors, including the profitability of the Sub-Adviser and the contribution of the individual employee.

Ownership of Securities

As of October 31, 2008, none of the portfolio managers beneficially owned any equity securities in the fund.

Transamerica Thornburg International Value

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Williams V. Fries		17	$21.4 billion			9	$1.6 billion			4,030	$6.3 billion
Wendy Trevisani		12	$16.7 billion			7	$664.9 million			9,256	$7.3 billion
Lei Wang		12	$16.7 billion			3	$624.5 million			27	$3.8 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Williams V. Fries		0	$	0		0	$	0		1	$73 million
Wendy Trevisani		0	$	0		0	$	0		1	$73 million
Lei Wang		0	$	0		0	$	0		1	$73 million

Conflicts of Interest

Most investment advisers and their portfolio managers manage investments for multiple clients, including mutual funds, private accounts, and retirement plans. In any case where a portfolio or co-portfolio manager manages the investments of two or more accounts, there is a possibility that conflicts of interest could arise between the manager’s management of a fund’s investments and the manager’s management of other accounts. These conflicts could include:

– Allocating a favorable investment opportunity to one account but not another.

– Directing one account to buy a security before purchases through other accounts increase the price of the security in the marketplace.

– Giving substantially inconsistent investment directions at the same time to similar accounts, so as to benefit one account over another.

– Obtaining services from brokers conducting trades for one account, which are used to benefit another account.

B-35

Thornburg has considered the likelihood that any material conflicts of interest could arise between a manager’s management of the fund’s investments and the manager’s management of other accounts. Thornburg has not identified any such conflicts that may arise, and has concluded that it has implemented policies and procedures to identify and resolve any such conflict if it did arise.

Compensation

The compensation of each portfolio and co-portfolio manager includes an annual salary, annual bonus, and company-wide profit sharing. Each manager also owns equity shares in Thornburg. Both the salary and bonus are reviewed approximately annually for comparability with salaries of other portfolio managers in the industry, using survey data obtained from compensation consultants. The annual bonus is subjective. Criteria that are considered in formulating the bonus include, but are not limited to, the following: revenues available to pay compensation of the manager and all other expenses related to supporting the accounts managed by the manager, multiple year historical total return of accounts managed by the manager, relative to market performance and similar investment companies; single year historical total return of accounts managed by the manager, relative to market performance and similar investment companies; the degree of sensitivity of the manager to potential tax liabilities created for account holders in generating returns, relative to overall return. To the extent that the manager realizes benefits from capital appreciation and dividends paid to shareholders of Thornburg, such benefits accrue from the overall financial performance of Thornburg.

Ownership of Securities

As of October 31, 2008, none of the portfolio managers beneficially owned any equity securities in the fund.

Transamerica UBS Dynamic Alpha

Registered Investment

Other Pooled Investment

Companies

Vehicles

Other Accounts

Assets

Assets

Assets

Portfolio Manager

Number

Managed

Number

Managed

Number

Managed

Curt Custard

5

$2.4 billion

4

$2.2 billion

3

$

0

*

*      Three accounts with assets under management less than $1 million.

Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)

Curt Custard

0

$

0

0

$

0

3

$1 million

Transamerica UBS Large Cap Value

	Registered Investment				Other Pooled Investment
	Companies				Vehicles			Other Accounts
			Assets				Assets			Assets
Portfolio Manager	Number		Managed		Number		Managed	Number		Managed
Thomas Cole		17	$4.0 billion			62	$7.8 billion		19	$1.2 billion
John Leonard		17	$4.0 billion			62	$7.8 billion		16	$1.2 billion
Thomas Digenan		17	$4.0 billion			62	$7.8 billion		21	$1.2 billion
Scott Hazen		17	$4.0 billion			62	$7.8 billion		13	$1.2 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Thomas Cole		0	$	0		4	$1.1 billion		0	$	0
John Leonard		0	$	0		4	$1.1 billion		0	$	0
Thomas Digenan		0	$	0		4	$1.1 billion		0	$	0
Scott Hazen		0	$	0		4	$1.1 billion		0	$	0

Conflict of Interest

The portfolio management team’s management of the fund and other accounts could result in potential conflicts of interest if the fund and other accounts have different objectives, benchmarks and fees because the portfolio management team must allocate its time and investment expertise across multiple accounts, including the fund. The portfolio management team manages the fund and other accounts utilizing a model portfolio approach that groups similar accounts within a model portfolio. The sub-adviser manages accounts according to the appropriate model portfolio, including where possible, those accounts that have specific investment restrictions. Accordingly, portfolio holdings, position sizes, and industry and sector exposures tend to be similar across accounts, which may minimize the potential for conflicts of interest.

If a portfolio manager identifies a limited investment opportunity that may be suitable for more than one account or model portfolio, the fund may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible model portfolios and accounts. To deal with these situations, the sub-adviser has adopted procedures for allocating portfolio trades across multiple accounts to provide fair treatment to all accounts.

B-36

The management of personal accounts by a portfolio manager may also give rise to potential conflicts of interest. The sub-adviser and the Trust have adopted Codes of Ethics that govern such personal trading but there is no assurance that the Codes will adequately address all such conflicts.

Compensation

The compensation received by the portfolio managers at UBS Global Asset Management, including the funds’ portfolio managers, includes a base salary and incentive compensation, as detailed below. UBS Global Asset Management’s compensation and benefits programs are designed to provide its investment professionals with incentives to excel, and to promote an entrepreneurial, risk measured, performance-oriented culture. Overall compensation can be grouped into three categories:

• A fixed component — base salary and benefit — reflecting an individual’s skills and experience,

• Variable cash compensation, which is determined annually on a discretionary basis and is correlated with the performance of UBS, UBS Global Asset Management, the respect asset class, investment strategy, function and an individual’s (financial and non-financial) contribution to UBS Global Asset Management’s results, and

• A variable equity component that reinforces the critical importance of creating long-term business value whilst serving as an effective retention tool as shares typically vest over a number of years.

Portfolio manager’s variable compensation is tied to the performance of relevant client portfolios/funds. For analysts, variable compensation is, in general, tied to the performance of some combination of model and/or client/fund portfolios, generally evaluated over multiple-year periods and coupled with a qualitative assessment of their contribution. This ensures that the interests of the investment professionals are aligned with those of clients.

UBS is committed to the principle of employee share ownership, believing accountability for decisions and actions is encouraged through equity-based awards that vest and/or become unrestricted over time. Positions with a large scope of responsibility and a significant potential impact on the firm have higher equity exposure. UBS also has stringent share ownership requirements for senior executives.

A number of equity ownership plans are available to UBS employees, which vary by rank, performance and location. These plan rules may be amended from time to time in all or some jurisdictions. Some of these plans include:

Equity Plus Plan (Equity Plus): Equity Plus is a voluntary plan that provides employees with an opportunity to purchase UBS shares at fair market value and generally receive, at no additional cost, two UBS options for each share purchased, up to a maximum annual limit. Shares purchased under Equity Plus are restricted from sale for two years from the date of purchase and the options are forfeitable in certain circumstances. The options have a strike price equal to the fair market value of a UBS share on the date the option is granted, a two-year vesting period and generally expire ten years from the date of grant.

Equity Ownership Plan (EOP): Selected employees receive between 10% and 45% of their annual performance-related compensation in UBS shares or notional shares instead of cash on a mandatory basis. A small proportion of EOP awards is granted over Alternative Investment Vehicles (AIVs) to reflect the performance of certain funds. EOP awards generally vest in one-third increments over a three year vesting period and are forfeitable in certain circumstances.

Key Employee Stock Appreciation Rights Plan (KESAP) and Key Employee Stock Option Plan (KESOP): Key and high potential employees are granted discretionary UBS options or stock appreciation rights with a strike price not less than the fair market value of a UBS share on the date the option or stock appreciation right is granted. The options or stock appreciation rights have a three-year vesting period, are forfeitable in certain circumstances and generally expire ten years from the date of grant.

Ownership of Securities

As of October 31, 2008, none of the portfolio managers beneficially owned any equity securities in the funds.

Transamerica Van Kampen Emerging Markets Debt

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Abigail McKenna		9	$1.6 billion			8	$585.9 million			6	$1.6 billion
Eric Baurmeister		9	$1.6 billion			8	$585.9 million			6	$1.6 billion
Federico Kaune		9	$1.6 billion			8	$585.9 million			6	$1.6 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Abigail McKenna		0	$	0		0	$	0		0	$	0
Eric Baurmeister		0	$	0		0	$	0		0	$	0
Federico Kaune		0	$	0		0	$	0		0	$	0

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Transamerica Van Kampen Mid-Cap Growth and Transamerica Van Kampen Small Company Growth

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Manager	Number		Managed		Number		Managed		Number		Managed
Dennis Lynch		27	$12 billion			2	$479.6 million			5,176	$3.4 billion
David Cohen		27	$12 billion			2	$479.6 million			5,176	$3.4 billion
Sandeep Chainani		27	$12 billion			2	$479.6 million			5,176	$3.4 billion
Jason Yeung		27	$12 billion			2	$479.6 million			5,176	$3.4 billion
Alexander Norton		27	$12 billion			2	$479.6 million			5,176	$3.4 billion
Armistead Nash		27	$12 billion			2	$479.6 million			5,176	$3.4 billion
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Dennis Lynch		0	$	0		0	$	0		0	$	0
David Cohen		0	$	0		0	$	0		0	$	0
Sandeep Chainani		0	$	0		0	$	0		0	$	0
Jason Yeung		0	$	0		0	$	0		0	$	0
Alexander Norton		0	$	0		0	$	0		0	$	0
Armistead Nash		0	$	0		0	$	0		0	$	0

Conflict of Interest

Because the portfolio managers may manage assets for other investment companies, pooled investment vehicles, and/or other accounts (including institutional clients, pension plans and certain high net worth individuals), there may be an incentive to favor one client over another resulting in conflicts of interest. For instance, the sub-adviser may receive fees from certain accounts that are higher than the fee it receives from the fund, or it may receive a performance-based fee on certain accounts. In those instances, the portfolio managers may have an incentive to favor the higher and/or performance-based fee accounts over the fund. In addition, a conflict of interest could exist to the extent the sub-adviser has proprietary investments in certain accounts, where portfolio managers have personal investments in certain accounts or when certain accounts are investment options in the sub-adviser’s employee benefits and/or deferred compensation plans. The portfolio manager may have an incentive to favor these accounts over others. If the sub-adviser manages accounts that engage in short sales of securities of the type in which the fund invests, the sub-adviser could be seen as harming the performance of the fund for the benefit of the accounts engaging in short sales if the short sales cause the market value of the securities to fall. The sub-adviser has adopted trade allocation and other policies and procedures that it believes are reasonably designed to address these and other conflicts of interest.

Compensation

TAM pays MSIM Inc. a fee based on the assets under management of each fund as set forth in an investment sub-advisory agreement between MSIM Inc. and TAM. MSIM Inc. pays its investment professionals out of its total revenues and other resources, including the sub-advisory fees earned with respect to each fund. The following information relates to the period ended October 31, 2008.

PORTFOLIO MANAGER COMPENSATION STRUCTURE

Portfolio managers receive a combination of base compensation and discretionary compensation, comprising a cash bonus and several deferred compensation programs described below. The methodology used to determine portfolio manager compensation is applied across all funds/accounts managed by the portfolio manager.

BASE SALARY COMPENSATION. Generally, portfolio managers receive base salary compensation based on the level of their position with the Sub-Adviser.

DISCRETIONARY COMPENSATION. In addition to base compensation, portfolio managers may receive discretionary compensation.

Discretionary compensation can include:

- CASH BONUS;

- MORGAN STANLEY’S LONG-TERM INCENTIVE COMPENSATION AWARDS — a mandatory program that defers a portion of discretionary year-end compensation into restricted stock units or other awards based on Morgan Stanley common stock or other investments that are subject to vesting and other conditions;

- INVESTMENT MANAGEMENT ALIGNMENT PLAN (IMAP) AWARDS — a mandatory program that defers a portion of discretionary year-end compensation and notionally invests it in designated funds advised by the Sub-Adviser or its affiliates. The award is subject to vesting and other conditions. Portfolio Managers must notionally invest a minimum of 25% to a maximum of 100% of the IMAP deferral into a combination of the designated funds they manage that are included in the IMAP fund menu, which may or may not include the fund;

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- VOLUNTARY DEFERRED COMPENSATION PLANS — voluntary programs that permit certain employees to elect to defer a portion of their discretionary year-end compensation and directly or notionally invest the deferred amount: (1) across a range of designated investment funds, including funds advised by the Sub-Adviser or its affiliates; and/or (2) in Morgan Stanley stock units.

Several factors determine discretionary compensation, which can vary by portfolio management team and circumstances. In order of relative importance, these factors include:

- Investment performance. A portfolio manager’s compensation is linked to the pre-tax investment performance of the funds/accounts managed by the portfolio manager. Investment performance is calculated for one-, three- and five-year periods measured against a fund’s/account’s primary benchmark (as set forth in the fund’s prospectus), indices and/or peer groups, where applicable. Generally, the greatest weight is placed on the three- and five-year periods.

- Revenues generated by the investment companies, pooled investment vehicles and other accounts managed by the portfolio manager.

- Contribution to the business objectives of the Sub-Adviser.

- The dollar amount of assets managed by the portfolio manager.

- Market compensation survey research by independent third parties.

- Other qualitative factors, such as contributions to client objectives.

- Performance of Morgan Stanley and Morgan Stanley Investment Management, and the overall performance of the investment team(s) of which the portfolio manager is a member.

Ownership of Securities

As of October 31, 2008, Abigail McKenna, Eric Baurmeister and Federico Kaune, the portfolio managers of Transamerica Van Kampen Emerging Markets Debt, did not own any shares in the fund.

As of October 31, 2008, Dennis Lynch, David Cohen, Sandeep Chainani, Armistead Nash, Jason Yeung and Alexander Norton, the portfolio managers of Transamerica Van Kampen Mid-Cap Growth and Transamerica Van Kampen Small Company Growth, did not own any shares in the funds.

Transamerica WMC Emerging Markets

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets								Assets
Portfolio Manager	Number		Managed		Number		Assets Managed		Number		Managed
Vera M. Trojan		2	$65 million			10	$1.4 billion			10	$842 million
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Vera M. Trojan		0	$	0		0	$	0		1	$30 million

Conflicts of Interest

Individual investment professionals at Wellington Management manage multiple accounts for multiple clients. These accounts may include mutual funds, separate accounts (assets managed on behalf of institutions, such as pension funds, insurance companies, foundations, or separately managed account programs sponsored by financial intermediaries), bank common trust accounts, and hedge funds. The fund’s manager listed in the prospectus who is primarily responsible for the day-to-day management of the fund (“Portfolio Manager”) generally manages accounts in several different investment styles. These accounts may have investment objectives, strategies, time horizons, tax considerations and risk profiles that differ from those of the fund. The Portfolio Manager makes investment decisions for each account, including the fund, based on the investment objectives, policies, practices, benchmarks, cash flows, tax and other relevant investment considerations applicable to that account. Consequently, the Portfolio Manager may purchase or sell securities, including IPOs, for one account and not another account, and the performance of securities purchased for one account may vary from the performance of securities purchased for other accounts. Alternatively, these accounts may be managed in a similar fashion to the fund and thus the accounts may have similar, and in some cases nearly identical, objectives, strategies and/or holdings to that of the fund.

The Portfolio Manager or other investment professionals at Wellington Management may place transactions on behalf of other accounts that are directly or indirectly contrary to investment decisions made on behalf of the fund, or make investment decisions that are similar to those made for the fund, both of which have the potential to adversely impact the fund depending on market conditions. For example, an investment professional may purchase a security in one account while appropriately selling that same security in another account. Similarly, the Portfolio Manager may purchase the same security for the fund and one or more other accounts at or about the same time, and in those instances the other accounts will have access to their respective holdings prior to the public disclosure of the fund’s

B-39

holdings. In addition, some of these accounts have fee structures, including performance fees, which are or have the potential to be higher, in some cases significantly higher, than the fees Wellington Management receives for managing the fund. Because incentive payments paid by Wellington Management to the Portfolio Manager are tied to revenues earned by Wellington Management and, where noted, to the performance achieved by the manager in each account, the incentives associated with any given account may be significantly higher or lower than those associated with other accounts managed by the Portfolio Manager. Finally, the Portfolio Manager may hold shares or investments in the other pooled investment vehicles and/or other accounts identified above.

Wellington Management’s goal is to meet its fiduciary obligation to treat all clients fairly and provide high quality investment services to all of its clients. Wellington Management has adopted and implemented policies and procedures, including brokerage and trade allocation policies and procedures, which it believes address the conflicts associated with managing multiple accounts for multiple clients. In addition, Wellington Management monitors a variety of areas, including compliance with primary account guidelines, the allocation of IPOs, and compliance with the firm’s Code of Ethics, and places additional investment restrictions on investment professionals who manage hedge funds and certain other accounts. Furthermore, senior investment and business personnel at Wellington Management periodically review the performance of Wellington Management’s investment professionals. Although Wellington Management does not track the time an investment professional spends on a single account, Wellington Management does periodically assess whether an investment professional has adequate time and resources to effectively manage the investment professional’s various client mandates.

Compensation

Wellington Management receives a fee based on the assets under management of the fund as set forth in the Investment Sub-advisory Agreement between Wellington Management and TAM on behalf of the fund. Wellington Management pays its investment professionals out of its total revenues and other resources, including the advisory fees earned with respect to the fund. The following information relates to the fiscal year ended October 31, 2008.

Wellington Management’s compensation structure is designed to attract and retain high-caliber investment professionals necessary to deliver high quality investment management services to its clients. Wellington Management’s compensation of the Portfolio Manager includes a base salary and incentive components. The base salary for the Portfolio Manager who is a partner of Wellington Management is determined by the Managing Partners of the firm. A partner’s base salary is generally a fixed amount that may change as a result of an annual review. The Portfolio Manager is eligible to receive an incentive payment based on the revenues earned by Wellington Management from the fund and generally each other account managed by the Portfolio Manager. The Portfolio Manager’s incentive payment relating to the fund is linked to the gross pre-tax performance of the fund compared to the MSCI Emerging Markets Index over one and three year periods, with an emphasis on three year results. Wellington Management applies similar incentive compensation structures (although the benchmarks or peer groups, time periods and rates may differ) to other accounts managed by the Portfolio Manager, including accounts with performance fees.

Portfolio-based incentives across all accounts managed by an investment professional can, and typically do, represent a significant portion of an investment professional’s overall compensation; incentive compensation varies significantly by individual and can vary significantly from year to year. The Portfolio Manager may also be eligible for bonus payments based on her overall contribution to Wellington Management’s business operations. Senior management at Wellington Management may reward individuals as it deems appropriate based on factors other than account performance. Each partner of Wellington Management is eligible to participate in a partner-funded tax qualified retirement plan, the contributions to which are made pursuant to an actuarial formula, as a partner of the firm. Ms. Trojan is a partner of the firm.

Ownership of Securities

As of October 31, 2008, the portfolio manager did not beneficially own any equity securities in the fund.

B-40

EX-99.17.D

Open Funds

Annual Report
October 31, 2008

www.transamericafunds.com

Customer Service 1-888-233-4339
P.O. Box 9012 • Clearwater, FL 33758-9012
Distributor: Transamerica Capital, Inc.

Dear Fellow Shareholder,

On behalf of Transamerica Funds, I 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 advisor 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 recognize and understand current market conditions in order to provide a context for reading this report. Both equity and fixed-income markets have experienced extreme volatility and accelerating downward pricing pressure over the past twelve months as a credit crisis has had profound effects on the financial markets and has spilled over into the global economy. Oil prices rose dramatically throughout the first seven months of 2008 and have fallen precipitously since then as the global economy has struggled and demand has declined. The Federal Reserve has lowered the federal funds rate during the past twelve months from 4.25% in November 2007 to 1.00% at the end of October 2008 as it has sought to provide liquidity in a difficult market environment. The Treasury department has also been taking an active role in an effort to stabilize the markets, including the initiation of the Temporary Guarantee Program for Money Market Funds and the Troubled Assets Relief Program (TARP). The job market continues to struggle, as non-farm payrolls have weakened and the unemployment rate has risen to over 6%. In this environment, investors have flocked to money market instruments and Treasuries in a flight to quality. Many funds have struggled to produce positive returns. For the twelve months ending October 31, 2008, the Dow Jones Industrial Average returned -31.24%, the Standard & Poor’s 500 Index returned -36.10%, and the Barclays Capital US Aggregate Bond Index returned 0.30%. Please keep in mind it is 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 advisor is a key resource to help you build a complete picture of your current and future financial needs. Financial advisors are familiar with the market’s history, including long-term returns and volatility of various asset classes. With your financial advisor, you can develop an investment program that incorporates factors such as your goals, your investment timeline, and your risk tolerance.

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

Sincerely,

John K. Carter	Christopher A. Staples, CFA
President & Chief Executive Officer	Vice President & Chief Investment Officer
Transamerica Funds	Transamerica Funds

The views expressed in this report reflect those of the portfolio managers only and may not necessarily represent the views of Transamerica 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 Transamerica Funds.

Transamerica Balanced
(unaudited)

MARKET ENVIRONMENT

Faced with many challenges in the twelve months ended October 31, 2008, US equity indices delivered double-digit negative returns across the board. Stocks underperformed bonds, as the Standard and Poor’s 500 Composite Stock Index (“S&P 500”) declined 36.10% and the Barclays Capital (formerly Lehman Brothers) US Government/Credit Bond Index (“BCGC”) fell 1.06%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. The higher borrowing costs made it more difficult for companies to fund payroll, inventory and other near-term expenses. Consumers, who already were feeling the effects of higher energy and food prices and rising unemployment, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the US government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown increased.

A 60% equity/40% bond blend of the above mentioned indices declined 23.39% during the period.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Balanced Class A returned (33.55)%. By comparison, its primary and secondary benchmarks, the S&P 500 and the BCGC, returned (36.10)% and (1.06)%, respectively.

STRATEGY REVIEW

Transamerica Balanced’s twelve-month return reflects an overweighting in equities, which underperformed bonds, and underperformance of the equity and bond portfolios as compared to their respective benchmarks.

On the equity side, the key factors in the lagging returns were our underweighting in the top-performing consumer staples sector and poor results for some of our automotive/transportation holdings (e.g., Daimler AG (“Daimler”)). Daimler suffered during the year due primarily to the downward trend in automotive sales worldwide and the lack of financing available to consumers. Partially offsetting these declines were our selections in the healthcare (e.g., Gilead Sciences, Inc. (“Gilead”)) and producer durables (e.g., W.W. Grainger, Inc. (“Grainger”)) sectors. Gilead, a biopharmaceutical company working on treatments for cures to life-threatening diseases, has benefited from competitors being merged, which reduced its competition. Grainger, a building maintenance supply company, has implemented improvement projects within its businesses. This company-specific catalyst enabled Grainger to take market share from competitors, partially offsetting the effects of a weaker economy. The portfolio also benefited from our underweighting the financials sector.

In the bond portfolio, an overweighting of non-government sectors (i.e., investment-grade corporate securities and agency mortgage securities), which lagged the Treasury sector, was the primary source of underperformance. The negative effect of these overweightings was partially mitigated by our individual security selection. Among investment-grade corporate bonds, we had no exposure to the most distressed companies in the troubled financial services sector. On the mortgage side, our emphasis was on short- duration agency collateralized mortgage obligations, which were less volatile than other mortgage securities.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector, the biggest government intervention in the financial system since the 1930s, should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and reduce the severity of the recession. The equity portfolio is populated with securities of companies that, in our opinion, have capable management teams, strong balance sheets and highly competitive positions, and that stand to benefit from long-term secular trends. We believe these traits will allow the companies to weather a recession better than most and emerge as stronger competitors on the other side. On the bond side, we are maintaining a relatively cautious stance, with a shorter-than-index duration and a focus on quality.

Gary U. Rollé, CFA
Greg D. Haendel, CFA
Derek S. Brown, CFA
Geoffrey I. Edelstein, CFA, CIC
Edward S. Han
John J. Huber, CFA
Peter O. Lopez
Erik U. Rollé
Brian W. Westhoff, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

Prior to October 1, 2008, Heidi Y. Hu, CFA was also a co-portfolio manager.

1

Average Annual Total Return for Periods Ended 10/31/2008

										From			Inception
	1 Year			5 Years			10 Years			Inception			Date
Class A (NAV)		(33.55	)%		0.12	%		2.83	%		7.24	%		12/2/94
Class A (POP)		(37.22	)%		(1.00	)%		2.24	%		6.81	%		12/2/94
S&P 500(1)		(36.10	)%		0.26	%		0.40	%		7.56	%		12/2/94
Barclays Capital Government/Credit Bond Index(1)		(1.06	)%		3.08	%		4.81	%		6.36	%		12/2/94
Class B (NAV)		(33.95	)%		(0.45	)%		2.32	%		6.13	%		10/1/95
Class B (POP)		(37.15	)%		(0.64	)%		2.32	%		6.13	%		10/1/95
Class C (NAV)		(33.92	)%		(0.45	)%		N/A			0.89	%		11/11/02
Class C (POP)		(34.56	)%		(0.45	)%		N/A			0.89	%		11/11/02

NOTES
(1)	The Standard and Poor’s 500 Composite Stock Index (S&P 500) and the Barclays Capital Government/Credit Bond Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot invest directly in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.

2

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	728.23		1.52	%	$	6.60
Hypothetical (b)		1,000.00		1,017.50		1.52			7.71
Class B
Actual		1,000.00		726.50		2.13			9.24
Hypothetical (b)		1,000.00		1,014.43		2.13			10.79
Class C
Actual		1,000.00		726.46		2.06			8.94
Hypothetical (b)		1,000.00		1,014.78		2.06			10.43

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Asset Type
At October 31, 2008
(unaudited)

This chart shows the percentage breakdown by Asset Type of the Fund’s total investment securities. Percentage breakdown of the Short-term category includes Securities Lending Collateral.

3

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Principal		Value
U.S. GOVERNMENT OBLIGATIONS (5.1%)
U.S. Treasury Bond
4.38%, due 02/15/2038 ^	$	1,202	$	1,205
5.00%, due 05/15/2037 ^		1,774		1,954
U.S. Treasury Inflation Indexed Note
1.38%, due 07/15/2018 ^		452		387
U.S. Treasury Note
2.00%, due 09/30/2010		250		252
3.88%, due 05/15/2018 ^		714		713
4.00%, due 08/15/2018 ^		627		628
Total U.S. Government Obligations (cost $5,157)				5,139
U.S. GOVERNMENT AGENCY OBLIGATIONS (7.5%)
Fannie Mae
5.00%, due 04/25/2034		700		665
5.50%, due 10/01/2036 - 04/01/2038		2,506		2,450
Freddie Mac
4.25%, due 10/15/2026		826		824
5.00%, due 05/15/2028 - 10/15/2030		2,500		2,471
5.35%, due 11/14/2011		1,070		1,071
Total U.S. Government Agency Obligations (cost $7,537)				7,481
MORTGAGE-BACKED SECURITIES (3.1%)
Bear Stearns Commercial Mortgage Securities
Series 2006-PW14, Class A4
5.20%, due 12/11/2038		750		563
Crown Castle Towers LLC
Series 2006-1A, Class AFX
5.24%, due 11/15/2036 -144A		739		710
Morgan Stanley Capital I
Series 2006-HQ10, Class A4
5.33%, due 11/12/2041		750		568
SBA CMBS Trust
Series 2006-1A, Class A
5.31%, due 11/15/2036 -144A		680		637
Wachovia Bank Commercial Mortgage Trust
Series 2006-C28, Class A4
5.57%, due 10/15/2048		734		559
Series 2007-C32, Class H
5.74%, due 06/15/2049 -144A		245		65
Total Mortgage-Backed Securities (cost $3,880)				3,102
ASSET-BACKED SECURITY (0.6%)
USAA Auto Owner Trust
Series 2007-2, Class A3
4.90%, due 02/15/2012		605		596
Total Asset-Backed Security (cost $605)				596
CORPORATE DEBT SECURITIES (22.9%)
Aerospace & Defense (0.9%)
Embraer Overseas, Ltd.
6.38%, due 01/24/2017		250		162
Honeywell International, Inc.
6.13%, due 11/01/2011		660		662
Airlines (0.2%)
Delta Air Lines, Inc.
7.57%, due 11/18/2010		270		224
Automobiles (0.8%)
Daimler Finance North America LLC
3.25%, due 03/13/2009 *		405		385
7.20%, due 09/01/2009		460		427
Beverages (1.9%)
Coca-Cola Enterprises, Inc.
3.31%, due 05/06/2011 *		480		463
Diageo Capital PLC
5.75%, due 10/23/2017		458		394
Molson Coors Capital Finance
4.85%, due 09/22/2010		485		486
Sabmiller PLC
6.20%, due 07/01/2011 -144A		460		467
Capital Markets (0.7%)
Lazard Group
7.13%, due 05/15/2015		385		303
Merrill Lynch & Co., Inc.
5.45%, due 02/05/2013		475		428
Chemicals (2.4%)
ICI Wilmington, Inc.
4.38%, due 12/01/2008		791		791
Lubrizol Corp.
4.63%, due 10/01/2009		1,350		1,301
PPG Industries, Inc.
5.75%, due 03/15/2013		280		261
Commercial Banks (1.0%)
Barclays Bank PLC
7.70%, due 04/25/2018 -144A ■ Ž		395		274
PNC Bank NA
6.00%, due 12/07/2017		250		217
6.88%, due 04/01/2018		270		249
Wells Fargo Bank NA
5.75%, due 05/16/2016 ^		300		269
Construction Materials (0.2%)
Lafarge SA
7.13%, due 07/15/2036		255		183
Consumer Finance (0.7%)
American Honda Finance Corp.
5.13%, due 12/15/2010 -144A		450		440
Discover Financial Services
3.35%, due 06/11/2010 *		432		307
Containers & Packaging (0.3%)
Rexam PLC
6.75%, due 06/01/2013 -144A		315		309
Diversified Financial Services (0.7%)
Glencore Funding LLC
6.00%, due 04/15/2014 -144A		292		276
Pemex Finance, Ltd.
9.03%, due 02/15/2011		425		428
Diversified Telecommunication Services (1.1%)
AT&T, Inc.
4.13%, due 09/15/2009		304		301
Telefonica Europe BV
7.75%, due 09/15/2010		415		402
Verizon Communications, Inc.
8.75%, due 11/01/2018		435		444
Food & Staples Retailing (0.2%)
Stater Brothers Holdings, Inc.
8.13%, due 06/15/2012		225		200
Food Products (1.0%)
Bunge, Ltd. Finance Corp.
4.38%, due 12/15/2008		500		498
Cargill, Inc.
5.60%, due 09/15/2012 -144A		225		209

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

4

	Principal		Value
Food Products (continued)
Michael Foods, Inc.
8.00%, due 11/15/2013	$	320	$	277
Hotels, Restaurants & Leisure (0.2%)
Royal Caribbean Cruises, Ltd.
8.75%, due 02/02/2011		252		217
Household Products (0.2%)
Kimberly-Clark Corp.
6.63%, due 08/01/2037		250		220
Industrial Conglomerates (0.4%)
Hutchison Whampoa International, Ltd.
5.45%, due 11/24/2010 -144A		450		425
Insurance (0.6%)
Hartford Financial Services Group, Inc.
7.90%, due 06/15/2010		525		513
Oil Insurance, Ltd.
7.56%, due 06/30/2011 -144A ■ Ž		270		137
IT Services (0.4%)
Western Union Co.
5.40%, due 11/17/2011		450		438
Machinery (0.3%)
Tyco Electronics Group SA
6.55%, due 10/01/2017		392		326
Media (1.0%)
Comcast Corp.
7.05%, due 03/15/2033		325		269
Historic TW, Inc.
9.13%, due 01/15/2013		485		466
News America Holdings, Inc.
7.75%, due 12/01/2045		262		219
Metals & Mining (0.4%)
Arcelormittal
5.38%, due 06/01/2013 -144A		440		358
Multiline Retail (0.3%)
Neiman-Marcus Group, Inc.
9.00%, due 10/15/2015 ^		200		137
Target Corp.
7.00%, due 01/15/2038		242		185
Multi-Utilities (0.5%)
Sempra Energy
4.75%, due 05/15/2009		480		473
Oil, Gas & Consumable Fuels (2.6%)
Burlington Resources Finance Co.
6.50%, due 12/01/2011		450		450
Enterprise Products Operating, LP
4.63%, due 10/15/2009		320		306
Kinder Morgan Energy Partners, LP
7.50%, due 11/01/2010		455		435
Petrobras International Finance Co.
5.88%, due 03/01/2018		280		220
PetroHawk Energy Corp.
9.13%, due 07/15/2013		360		277
Teppco Partners, LP
7.00%, due 06/01/2067 ■		300		207
Valero Logistics Operations, LP
6.88%, due 07/15/2012		710		725
Pharmaceuticals (0.4%)
Allergan, Inc.
5.75%, due 04/01/2016		445		397
Real Estate Investment Trusts (2.3%)
BRE Properties, Inc.
5.75%, due 09/01/2009		1,115		1,088
PPF Funding, Inc.
5.35%, due 04/15/2012 -144A		781		737
Wea Finance LLC / WCI Finance LLC
5.40%, due 10/01/2012 -144A		520		453
Real Estate Management & Development (0.6%)
Post Apartment Homes, LP
6.30%, due 06/01/2013		569		559
Road & Rail (0.6%)
Erac USA Finance Co.
6.38%, due 10/15/2017 -144A		335		205
Hertz Corp.
8.88%, due 01/01/2014		200		146
Union Pacific Corp.
5.70%, due 08/15/2018		350		294
Total Corporate Debt Securities (cost $25,560)				22,919

	Shares
COMMON STOCKS (58.2%)
Aerospace & Defense (1.0%)
Boeing Co. ^		20,000	1,045
Air Freight & Logistics (1.6%)
Expeditors International of Washington, Inc. ^		50,000	1,632
Auto Components (2.4%)
BorgWarner, Inc. ^		50,000	1,124
Johnson Controls, Inc.		72,000	1,277
Biotechnology (2.1%)
Gilead Sciences, Inc. ‡ ^		46,000	2,109
Capital Markets (7.0%)
BlackRock, Inc. ^		12,000	1,576
Charles Schwab Corp. ^		130,000	2,486
Merrill Lynch & Co., Inc. ^		70,000	1,301
T. Rowe Price Group, Inc. ^		39,843	1,575
Chemicals (1.7%)
Sigma-Aldrich Corp. ^		40,000	1,754
Communications Equipment (2.5%)
Qualcomm, Inc.		65,000	2,487
Computers & Peripherals (2.7%)
Apple, Inc. ‡ ^		25,000	2,690
Construction & Engineering (1.2%)
Jacobs Engineering Group, Inc. ‡ ^		32,000	1,166
Consumer Finance (1.0%)
American Express Co.		35,000	963
Diversified Financial Services (0.8%)
CME Group, Inc. ^		2,800	790
Diversified Telecommunication Services (2.5%)
Verizon Communications, Inc. ^		85,000	2,522
Electronic Equipment & Instruments (1.6%)
Tyco Electronics, Ltd.		85,000	1,652
Energy Equipment & Services (0.9%)
Schlumberger, Ltd. ^		18,000	930
Food & Staples Retailing (2.0%)
Costco Wholesale Corp. ^		35,000	1,995
Health Care Equipment & Supplies (3.3%)
Becton Dickinson & Co.		21,555	1,496
Varian Medical Systems, Inc. ‡ ^		40,000	1,820
Industrial Conglomerates (1.6%)
General Electric Co.		80,000	1,561
Internet & Catalog Retail (2.0%)
Amazon.com, Inc. ‡ ^		35,000	2,003

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

5

	Shares		Value
Internet Software & Services (2.2%)
Google, Inc. -Class A ‡		6,000	$	2,156
Machinery (4.5%)
Caterpillar, Inc. ^		30,000		1,145
Kennametal, Inc.		80,000		1,698
PACCAR, Inc. ^		60,000		1,754
Oil, Gas & Consumable Fuels (1.1%)
Anadarko Petroleum Corp.		30,000		1,059
Pharmaceuticals (1.0%)
Allergan, Inc.		25,000		992
Road & Rail (2.3%)
Burlington Northern Santa Fe Corp.		26,000		2,316
Semiconductors & Semiconductor Equipment (1.8%)
Intel Corp.		111,000		1,776
Software (4.4%)
Adobe Systems, Inc. ‡		90,000		2,398
Oracle Corp. ‡		60,000		1,097
Salesforce.com, Inc. ‡ ^		30,000		929
Trading Companies & Distributors (3.0%)
WW Grainger, Inc. ^		38,500		3,025
Total Common Stocks (cost $72,778)			$	58,299

	Principal
REPURCHASE AGREEMENT (7.0%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $6,973 on 11/03/2008 à •	$	6,973	6,973
Total Repurchase Agreement (cost $6,973)			6,973

	Shares
SECURITIES LENDING COLLATERAL (25.8%)
State Street Navigator Securities Lending Trust — Prime Portfolio, 2.71% à ▲		25,791,082		25,791
Total Securities Lending Collateral (cost $25,791)				25,791
Total Investment Securities (cost $148,281) #			$	130,300

NOTES TO SCHEDULE OF INVESTMENTS:
^	All or a portion of this security is on loan. The value of all securities on loan is $25,194.
*	Floating or variable rate note. Rate is listed as of 10/31/2008.
Ž	The security has a perpetual maturity. The date shown is the next call date.
■	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 10/31/2008.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 3.56% to 3.94%, maturity dates ranging between 10/25/2036 — 08/01/2037, and with market values plus accrued interests of $7,115.
à	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 10/31/2008.
#	Aggregate cost for federal income tax purposes is $148,381. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $3,474 and $21,555, respectively. Net unrealized depreciation for tax purposes is $18,081.

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 10/31/2008, these securities aggregated $5,702, or 5.70% of the Fund’s net assets.
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

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

6

Transamerica Convertible Securities
(unaudited)

MARKET ENVIRONMENT

Faced with many challenges in the twelve months ended October 31, 2008, US stocks lost ground, and the Standard and Poor’s 500 Composite Stock Index (“S&P 500”) declined 36.10%. Convertibles, which are highly sensitive to equity-market trends, followed stocks lower; the Merrill Lynch All US Convertible Securities Index (“MLCI”) declined 38.49%.

What began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe credit crises. Overnight lending between banks, a vital part of maintaining the flow of capital in the financial system, was disrupted as banks increasingly worried about undisclosed risks from exotic securities. As credit problems multiplied, financial institutions focused on protecting their financial positions and demanded higher yields on corporate debt to compensate for the greater risk associated with the uncertain environment. This made it more difficult and expensive for businesses to issue debt, causing Wall Street’s problems to spill over to Main Street, where businesses were already dealing with the signs of a slowing economy, including falling home prices, rising costs for food and energy, higher unemployment, lack of wage growth and tighter credit conditions. Although the Federal Reserve Board (“Fed”) and the US government intervened on several occasions, taking somewhat unprecedented measures, the credit crisis persisted and the economic outlook continued to dim.

Convertibles generally fare better than stocks during equity bear markets. That was not the case toward the end of the period. To raise cash, large institutional holders of convertibles (e.g., hedge funds) sold convertibles in volume. Additionally, corporate debt yields climbed, reducing the value of convertibles’ debt component.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Convertible Securities Class A returned (38.92)%. By comparison, its benchmark, the MLCI returned (38.49)%.

STRATEGY REVIEW

We seek the convertibles of well-run companies that generate free cash flow and stand to benefit from positive changes in the companies, their industries, or the external forces driving their businesses. These parameters led us to trim back the portfolio’s investments in securities from consumer discretionary companies, many of which were very susceptible to the worsening economy. This benefited the portfolio late in the period, as the poor economic situation became increasingly apparent. Also working to the portfolio’s advantage was an increased focus on securities from companies whose business models allowed them to weather the economic downturn relatively well. Among the portfolio’s large contributors to results was Gilead Sciences, Inc. (“Gilead”), a biopharmaceutical company. Gilead, which develops and markets treatments for diseases such as hepatitis C and HIV, saw steady product demand. Another top-performer was Informatica Corporation, a software company providing enterprise data integration. The company receives recurring cash flows from licensing and maintaining its software programs.

A key detractor was the portfolio’s overweighting in the energy sector. Early in the period, as commodity prices soared, our selections in natural gas producer Chesapeake Energy Corporation and oil services provider Schlumberger Limited (“Schlumberger”) garnered positive returns. When commodity prices later declined, performance in this sector followed suit.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and serve to shorten or at least reduce the severity of the recession. In the interim, market conditions likely will not be favorable. With that in mind, we are seeking securities of non-cyclical businesses that we believe benefit from long-term secular trends and thus can hold their own amidst the turbulence.

Kirk J. Kim
Peter O. Lopez

Co- Portfolio Managers
Transamerica Investment Management, LLC

7

Average Annual Total Return for Periods Ended 10/31/2008

							From			Inception
	1 Year			5 Years			Inception			Date
Class A (NAV)		(38.92)	%		0.41	%		2.67	%		3/1/02
Class A (POP)		(41.81)	%		(0.55)	%		1.92	%		3/1/02
Merrill Lynch All U.S. Convertible Securities Index(1)		(38.49)	%		(2.39)	%		0.42	%		3/1/02
Class B (NAV)		(39.32)	%		(0.29)	%		1.98	%		3/1/02
Class B (POP)		(41.66)	%		(0.42)	%		1.98	%		3/1/02
Class C (NAV)		(39.24)	%		(0.29)	%		3.25	%		11/11/02
Class C (POP)		(39.71)	%		(0.29)	%		3.25	%		11/11/02
Class I (NAV)		(38.58)	%		N/A			(4.39	)%		11/15/05

NOTES
(1)	The Merrill Lynch All U.S. Convertibles Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 4.75% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this Fund.

8

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypotetical examples that appear in the shareholder reports of the other funds. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	675.14		1.35	%	$	5.68
Hypothetical (b)		1,000.00		1,018.35		1.35			6.85
Class B
Actual		1,000.00		672.93		2.04			8.58
Hypothetical (b)		1,000.00		1,014.88		2.04			10.33
Class C
Actual		1,000.00		673.77		1.95			8.20
Hypothetical (b)		1,000.00		1,015.33		1.95			9.88
Class I
Actual		1,000.00		677.22		0.84			3.54
Hypothetical (b)		1,000.00		1,020.91		0.84			4.27

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Investment Type
At October 31, 2008
(unaudited)

This chart shows the percentage breakdown by Investment Type of the Fund’s total investment securities. Percentage breakdown of the Short-term category includes Securities Lending Collateral.

9

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Principal		Value
CORPORATE DEBT SECURITIES (3.1%)
Automobiles (1.6%)
Daimler Finance North America LLC
3.17%, due 03/13/2009 *	$	1,955	$	1,839
Hotels, Restaurants & Leisure (1.5%)
MGM Mirage, Inc.
6.00%, due 10/01/2009		1,950		1,735
Total Corporate Debt Securities (cost $3,533)				3,574

	Shares
CONVERTIBLE PREFERRED STOCKS (11.8%)
Capital Markets (1.7%)
Credit Suisse, Inc. 5.50% q 5		36,010	1,888
Chemicals (1.6%)
Celanese Corp. 4.25% 5		97,000	1,828
Diversified Financial Services (2.6%)
Bank of America Corp. 7.25% 5		4,236	2,965
Insurance (3.0%)
MetLife, Inc. 6.38% 5		390,000	3,382
Oil, Gas & Consumable Fuels (0.6%)
Dune Energy, Inc. 12.00% -144A 5		1,648	618
Road & Rail (2.3%)
Kansas City Southern Railway 5.13% 5		2,450	2,606
Total Convertible Preferred Stocks (cost $16,015)			13,287

	Principal
CONVERTIBLE BONDS (68.1%)
Aerospace & Defense (3.8%)
Alliant Techsystems, Inc.
2.75%, due 02/15/2024	$	3,910	4,237
Airlines (0.8%)
AMR Corp.
4.50%, due 02/15/2024		945	891
Beverages (3.4%)
Molson Coors Brewing Co.
2.50%, due 07/30/2013 ^		4,150	3,787
Biotechnology (4.3%)
Gilead Sciences, Inc.
0.63%, due 05/01/2013 ^		3,855	4,785
Capital Markets (6.2%)
BlackRock, Inc.
2.63%, due 02/15/2035		2,225	2,940
Merrill Lynch & Co., Inc.
Zero Coupon, due 03/13/2032		3,950	4,034
Commercial Services & Supplies (3.1%)
Covanta Holding Corp.
1.00%, due 02/01/2027		4,225	3,491
Electronic Equipment & Instruments (1.8%)
Itron, Inc.
2.50%, due 08/01/2026 ^		2,452	2,023
Energy Equipment & Services (6.8%)
Core Laboratories, LP
0.25%, due 10/31/2011		2,830	2,480
Schlumberger, Ltd.
2.13%, due 06/01/2023		1,452	1,913
Transocean, Inc.
1.63%, due 12/15/2037		3,750	3,300
Food & Staples Retailing (3.0%)
Costco Wholesale Corp.
Zero Coupon, due 08/19/2017		2,587	3,350
Health Care Equipment & Supplies (2.6%)
NuVasive, Inc.
2.25%, due 03/15/2013 -144A		2,493	2,932
IT Services (2.2%)
Alliance Data Systems Corp.
1.75%, due 08/01/2013 -144A		3,320	2,465
Leisure Equipment & Products (3.0%)
Hasbro, Inc.
2.75%, due 12/01/2021		2,450	3,369
Life Sciences Tools & Services (1.5%)
Fisher Scientific International, Inc.
3.25%, due 03/01/2024 ^		1,529	1,745
Media (2.3%)
Macrovision Corp.
2.63%, due 08/15/2011		3,875	2,596
Oil, Gas & Consumable Fuels (1.8%)
Chesapeake Energy Corp.
2.50%, due 05/15/2037 ^		3,330	2,085
Pharmaceuticals (5.5%)
Allergan, Inc.
1.50%, due 04/01/2026 ^		3,250	2,929
Sepracor, Inc.
Zero Coupon, due 10/15/2024 ^		3,700	3,293
Road & Rail (2.9%)
CSX Corp.
Zero Coupon, due 10/30/2021		2,000	3,243
Software (5.4%)
Informatica Corp.
3.00%, due 03/15/2026		4,105	3,556
Nuance Communications, Inc.
2.75%, due 08/15/2027		3,100	2,484
Specialty Retail (3.5%)
Penske Auto Group, Inc.
3.50%, due 04/01/2026		3,830	2,571
TJX Companies, Inc.
Zero Coupon, due 02/13/2021		1,500	1,318
Wireless Telecommunication Services (4.2%)
NII Holdings, Inc.
2.75%, due 08/15/2025		823	665
3.13%, due 06/15/2012 -144A		2,304	1,267
SBA Communications Corp.
1.88%, due 05/01/2013 -144A		4,270	2,786
Total Convertible Bonds (cost $93,383)			76,535

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

10

	Principal		Value
REVERSE CONVERTIBLE BONDS¥ (7.9%)
Capital Markets (7.9%)
Deutsche Bank AG
27.01%, due 01/02/2009 -144A §	$	88	$	5,222
Goldman Sachs Group, Inc.
17.65%, due 12/05/2008 -144A §		34		3,592
Total Reverse Convertible Bonds (cost $12,494)				8,814
REPURCHASE AGREEMENT (6.2%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $6,992 on 11/03/2008 à •		6,992		6,992
Total Repurchase Agreement (cost $6,992)				6,992

	Shares
SECURITIES LENDING COLLATERAL (13.8%)
State Street Navigator Securities Lending Trust — Prime Portfolio, 2.71% à 5		15,504,358		15,504
Total Securities Lending Collateral (cost $15,504)				15,504
Total Investment Securities (cost $147,921) #			$	124,706

NOTES TO SCHEDULE OF INVESTMENTS:
*	Floating or variable rate note. Rate is listed as of 10/31/2008.
^	All or a portion of this security is on loan. The value of all securities on loan is $15,182.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 4.00%, and a maturity date of 06/01/2014, and with a market value plus accrued interest of $7,133.
§	Illiquid. At 10/31/2008, these securities aggregated $8,814, or 7.84% of the Fund’s net assets.
à	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
5	Interest rate shown reflects the yield at 10/31/2008.
q	Synthetic convertibles are a debt and warrant package structured to resemble a traditional convertible debt issue. The components of the package may be separable, unlike traditional convertibles, or they may be in the form of an equity-linked note.
#	Aggregate cost for federal income tax purposes is $147,956. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $753 and $24,003, respectively. Net unrealized depreciation for tax purposes is $23,250.
¥	A bond that can be converted to cash, debt, or equity at the discretion of the issuer at a set date. The bond contains an embedded derivative that allows the issuer to put the bond to bondholders at a set date prior to the bond’s maturity for existing debt or shares of an underlying company. The underlying company need not be related in any way to the issuer’s business.

DEFINTIONS:

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 10/31/2008, these securities aggregated $18,882, or 16.80% of the Fund’s net assets.
LLC	Limited Liability Company
LP	Limited Partnership

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

11

Transamerica Equity
(unaudited)

MARKET ENVIRONMENT

Faced with many challenges in the twelve months ended October 31, 2008, US equity indices delivered double-digit negative returns across the board. The Russell 1000^® Growth Index (“Russell 1000 Growth”) declined 36.95%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. This made it more difficult for companies to fund payroll, inventory and other near-term expenses in the face of high borrowing costs. Consumers, who already were feeling the effects of high energy prices, increasing food costs, rising unemployment and lack of wage growth, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the US government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown rose.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Equity Class A returned (43.25)%. By comparison, its benchmark, the Russell 1000 Growth, returned (36.95)%.

STRATEGY REVIEW

The Fund lagged the index due primarily to poor results from our holdings within the automotive/transportation (e.g., Daimler AG (“Daimler”)), technology (e.g., Research in Motion Limited (“RIMM”)), and consumer discretionary (e.g., MGM Mirage (“MGM”)) sectors. Daimler suffered during the year as a result of the downward trend in automotive sales worldwide, a trend that was heightened by consumers’ difficulty in obtaining automotive loans. We believe RIMM’s performance can be attributed to the concerns of slowing consumer spending rather than to any deterioration in company fundamentals. We sold our position in MGM in early 2008, based on our belief that discretionary spending on travel and entertainment would slow.

Partially offsetting these declines were our selections in materials/processing (e.g., Praxair, Inc. (“Praxair”)) and healthcare (e.g., Gilead Sciences, Inc. (“Gilead”)) and our cash position. Praxair, a producer and distributor of industrial gases, held up relatively well because its stable business model emphasizes long-term contracts. We believe this will help the company maintain its already strong market share. Gilead, a biopharmaceutical company working on treatments for cures to life-threatening diseases, has benefited from competitors’ mergers, which reduced its competition. Our goal is to be fully invested at all times, and cash has historically averaged less than 5% of portfolio assets. However, as market conditions worsened, we let our cash position build slightly so that we could redeploy the assets in attractive new opportunities as they arose.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector, the biggest government intervention in the financial system since the 1930s, should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and serve to shorten or at least reduce the severity of the recession. In the interim, high levels of market volatility likely will persist. The portfolio is populated with stocks of companies that, in our opinion, have capable management teams, strong balance sheets and highly competitive positions, and we believe stand to benefit from long-term secular trends.

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Edward S. Han
John J. Huber, CFA
Peter O. Lopez
Eric U. Rollé

Co-Portfolio Managers
Transamerica Investment Management, LLC

12

Average Annual Total Return for Periods Ended 10/31/2008

							From
	1 Year			5 Years			Inception			Inception Date
Class A (NAV)		(43.25	)%		0.46	%		(4.00	)%		3/1/00
Class A (POP)		(46.36	)%		(0.68	)%		(4.62	)%		3/1/00
Russell 1000 Growth (1)		(36.95	)%		(1.29	)%		(7.31	)%		3/1/00
Class B (NAV)		(43.63	)%		(0.29	)%		(4.66	)%		3/1/00
Class B (POP)		(46.45	)%		(0.49	)%		(4.66	)%		3/1/00
Class C (NAV)		(43.61	)%		(0.23	)%		3.75	%		11/11/02
Class C (POP)		(44.17	)%		(0.23	)%		3.75	%		11/11/02
Class I (NAV)		(42.85	)%		N/A			(8.51	)%		11/15/05
Class T (NAV)		(42.92	)%		N/A			(15.86	)%		10/27/06
Class T (POP)		(47.76	)%		N/A			(19.49	)%		10/27/06

NOTES
(1)	The Russell 1000 Growth Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot invest directly in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares (8.5% for Class T) or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this Fund. Class T is closed to new investments.

13

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualize			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	643.19		1.40	%	$	5.78
Hypothetical (b)		1,000.00		1,018.10		1.40			7.10
Class B
Actual		1,000.00		641.36		2.17			8.95
Hypothetical (b)		1,000.00		1,014.23		2.17			10.99
Class C
Actual		1,000.00		641.44		2.03			8.38
Hypothetical (b)		1,000.00		1,014.93		2.03			10.28
Class I
Actual		1,000.00		646.02		0.74			3.06
Hypothetical (b)		1,000.00		1,021.42		0.74			3.76
Class T
Actual		1,000.00		645.31		0.88			3.64
Hypothetical (b)		1,000.00		1,020.71		0.88			4.47

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At October 31, 2008
(unaudited)

This chart shows the percentage breakdown by Sector of the Fund’s total investment securities. Percentage breakdown of the Short-term category includes Securities Lending Collateral.

14

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (92.7%)
Aerospace & Defense (6.2%)
Boeing Co.		327,000	$	17,092
Raytheon Co.		875,000		44,721
Air Freight & Logistics (2.9%)
Expeditors International of Washington, Inc.		875,000		28,569
Auto Components (4.5%)
BorgWarner, Inc.		793,400		17,828
Johnson Controls, Inc. ^		1,515,200		26,865
Automobiles (1.9%)
Daimler AG ^		550,000		18,975
Biotechnology (5.1%)
Gilead Sciences, Inc. ‡ ^		1,100,000		50,435
Capital Markets (3.0%)
T. Rowe Price Group, Inc. ^		765,832		30,281
Chemicals (12.0%)
Ecolab, Inc.		670,000		24,964
Praxair, Inc.		940,000		61,241
Sigma-Aldrich Corp. ^		770,000		33,772
Commercial Banks (3.2%)
Wells Fargo & Co. ^		925,000		31,496
Communications Equipment (5.1%)
Qualcomm, Inc.		1,100,000		42,086
Research In Motion, Ltd. ‡		185,000		9,330
Computers & Peripherals (4.5%)
Apple, Inc. ‡		422,000		45,403
Construction & Engineering (3.3%)
Jacobs Engineering Group, Inc. ‡		900,000		32,787
Consumer Finance (1.5%)
American Express Co. ^		560,000		15,400
Diversified Financial Services (2.3%)
CME Group, Inc. -Class A ^		81,000		22,854
Diversified Telecommunication Services (2.6%)
AT&T, Inc.		980,000		26,235
Electronic Equipment & Instruments (3.5%)
Tyco Electronics, Ltd.		1,780,000		34,603
Energy Equipment & Services (1.8%)
Schlumberger, Ltd.		343,000		17,716
Health Care Equipment & Supplies (6.0%)
Becton Dickinson & Co.		372,750		25,869
Varian Medical Systems, Inc. ‡		745,000		33,905
Industrial Conglomerates (3.3%)
General Electric Co.		1,700,000		33,167
Internet & Catalog Retail (4.2%)
Amazon.com, Inc. ‡ ^		725,000		41,499
Internet Software & Services (3.8%)
Google, Inc. -Class A ‡		105,000		37,733
Machinery (4.6%)
Caterpillar, Inc.		457,000		17,444
PACCAR, Inc. ^		980,000		28,655
Oil, Gas & Consumable Fuels (1.0%)
Petroleo Brasileiro SA ADR		360,000		9,680
Pharmaceuticals (2.2%)
Allergan, Inc.		560,000		22,215
Road & Rail (4.2%)
Union Pacific Corp.		635,000		42,399
Total Common Stocks (cost $1,141,131)				925,219

	Principal
REPURCHASE AGREEMENT (13.3%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $132,589 on 11/03/2008 à •	$	132,587	132,587
Total Repurchase Agreement (cost $132,587)			132,587

	Shares
SECURITIES LENDING COLLATERAL (20.9%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.71% à ▲		208,081,714		208,082
Total Securities Lending Collateral (cost $208,082)				208,082
Total Investment Securities (cost $1,481,800) #			$	1,265,888

NOTES TO SCHEDULE OF INVESTMENTS:
^	All or a portion of this security is on loan. The value of all securities on loan is $203,507.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 5.00%, and a maturity date of 12/01/2019, and with a market value plus accrued interest of $135,241.
à	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 10/31/2008.
#	Aggregate cost for federal income tax purposes is $1,489,991. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $55,657 and $279,760, respectively. Net unrealized depreciation for tax purposes is $224,103.
DEFINITION:
ADR	American Depositary Receipt

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

15

Transamerica Flexible Income
(unaudited)

MARKET ENVIRONMENT

In the twelve months ended October 31, 2008, conditions in the economy and credit markets deteriorated, creating a very unstable environment for bond investors. The Barclays Capital (formerly Lehman Brothers) US Government/Credit Bond Index (“BCGC”) declined 1.06%.

What began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises. Overnight lending between banks, a vital part of maintaining the flow of capital in the financial system, was disrupted as banks increasingly worried about undisclosed risks from exotic securities and the financial strength and stability of other banks. As credit problems multiplied, financial institutions focused on preserving capital and were more selective about lending, making it more difficult for businesses to fund payroll, inventory and other near-term expenses.

The risk aversion eventually spread from Wall Street to Main Street, where it added to growing problems on the economic front. Throughout the period, the housing market continued to deteriorate, while commodity prices were volatile. Rising unemployment, coupled with lack of wage growth and tighter credit conditions, caused consumers to rein in their spending. The reduction in consumer spending, which is the backbone of the US economy, exacerbated problems further.

The Federal Reserve Board (“Fed”) and the US government intervened on several occasions, taking unprecedented measures to curb the crises, improve liquidity, and stimulate the economy. Among the many initiatives were new government-guaranteed loans, larger and more varied lending facilities for banks, and the federal bailout or takeover of major financial institutions. Even with the government’s intervention, the expectations of a global economic slowdown and US recession rose. Nearing the end of the period, investors flocked to the relative safety of US government debt, and Treasury yields declined rapidly. Finally, as concerns about how a slowing economy would affect mortgages and corporate profits, yields on other securities rose, and prices for most non-government securities fell.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Flexible Income Class A returned (16.57)%. By comparison, its benchmark, the BCGC, returned (1.06)%.

STRATEGY REVIEW

Throughout the period, the portfolio generated competitive yields, aided by an overweighting in corporate bonds, an area where yields generally rose. However, as the market tumult came to a head and yield spreads between government and corporate bonds grew, this overweighting hindered performance. Although the overweighting in corporate bonds had a negative impact to performance, our selections within the group helped mitigate losses. We stayed away from the most distressed companies (i.e., Lehman Brothers Holdings Inc. (“Lehman Brothers”), American International Group, Inc. (“AIG”) and Washington Mutual, Inc.) and had no exposure to sub-prime mortgage securities.

Portfolio management responsibilities were transferred to a new team at Transamerica Investment Management, LLC as of October 1, 2008. The new team began repositioning the portfolio while maintaining the portfolio’s mandate of income generation. Our focus became less on corporate issues and more on a diversified pool of fixed-income generating assets, including agency mortgage backed securities (“MBS”). Agency MBS were less volatile than other fixed-income securities because the government, in bailing out the securities’ issuers, had strengthened its guarantee of these securities.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and reduce the severity of the recession. In the interim, high levels of market volatility likely will persist.

Derek S. Brown, CFA
Kirk J. Kim
Greg D. Haendel, CFA
Peter O. Lopez
Brian W. Westhoff, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

Prior to October 1, 2008, Heidi Y. Hu, CFA was also a co-portfolio manager.

16

Average Annual Total Return for Periods Ended 10/31/2008

										From			Inception
	1 Year			5 Years			10 Years			Inception			Date
Class A (NAV)		(16.57	)%		(0.90	)%		2.44	%		5.59	%		6/29/87
Class A (POP)		(20.57	)%		(1.86	)%		1.94	%		5.35	%		6/29/87
Barclays Capital Government/Credit Bond Index (1)		(1.06	)%		3.08	%		4.81	%		7.05	%		6/29/87
Class B (NAV)		(17.03	)%		(1.52	)%		1.90	%		3.53	%		10/1/95
Class B (POP)		(20.98	)%		(1.67	)%		1.90	%		3.53	%		10/1/95
Class C (NAV)		(16.98	)%		(1.52	)%		N/A			(0.44	)%		11/11/02
Class C (POP)		(17.77	)%		(1.52	)%		N/A			(0.44	)%		11/11/02
Class I (NAV)		(16.02	)%		N/A			N/A			(1.95	)%		11/8/04

NOTES
(1)	The Barclays Capital Government/Credit Bond Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot invest directly in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 4.75% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this Fund.

17

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	851.44		1.40	%	$	6.52
Hypothetical (b)		1,000.00		1,018.10		1.40			7.10
Class B
Actual		1,000.00		848.53		2.04			9.48
Hypothetical (b)		1,000.00		1,014.88		2.04			10.33
Class C
Actual		1,000.00		849.61		1.97			9.16
Hypothetical (b)		1,000.00		1,015.23		1.97			9.98
Class I
Actual		1,000.00		853.58		0.78			3.63
Hypothetical (b)		1,000.00		1,021.22		0.78			3.96

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Asset Type
At October 31, 2008
(unaudited)

This chart shows the percentage breakdown by Asset Type of the Fund’s total investment securities. Percentage breakdown of the Short-term category includes Securities Lending Collateral.

18

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Principal		Value
U.S. GOVERNMENT OBLIGATIONS (8.0%)
U.S. Treasury Bond
4.38%, due 02/15/2038 ^	$	2,517	$	2,525
U.S. Treasury Note
3.13%, due 09/30/2013		5,995		6,092
4.00%, due 08/15/2018 ^		3,800		3,805
Total U.S. Government Obligations (cost $12,492)				12,422
U.S. GOVERNMENT AGENCY OBLIGATIONS (7.6%)
Fannie Mae
5.00%, due 06/25/2019		4,231		4,234
5.50%, due 07/01/2038		5,169		5,052
Freddie Mac
6.16%, due 12/01/2036 *		2,575		2,612
Total U.S. Government Agency Obligations (cost $12,034)				11,898
FOREIGN GOVERNMENT OBLIGATION (2.6%)
U.K. Gilt
4.50%, due 03/07/2013 GBP		2,500		4,113
Total Foreign Government Obligation (cost $4,490)				4,113
MORTGAGE-BACKED SECURITIES (5.9%)
American Tower Trust
Series 2007-1A, Class C
5.62%, due 04/15/2037 -144A		2,090		1,726
Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2007-CD4, Class J
5.69%, due 12/11/2049 -144A		4,750		1,253
Crown Castle Towers LLC
Series 2006-1A, Class C
5.47%, due 11/15/2036 -144A		2,000		1,815
SBA CMBS Trust
Series 2006-1A, Class D
5.85%, due 11/15/2036 -144A		2,054		1,778
Series 2006-1A, Class E
6.17%, due 11/15/2036 -144A		1,460		1,227
Wachovia Bank Commercial Mortgage Trust
Series 2006-C28, Class H
5.97%, due 10/15/2048 -144A		3,760		1,427
Total Mortgage-Backed Securities (cost $15,328)				9,226
CORPORATE DEBT SECURITIES (70.6%)
Aerospace & Defense (1.6%)
Embraer Overseas, Ltd.
6.38%, due 01/24/2017		1,487		967
Honeywell International, Inc.
2.88%, due 03/13/2009 *		1,520		1,477
Air Freight & Logistics (1.1%)
Federal Express Corp.
9.65%, due 06/15/2012		1,600		1,671
Airlines (1.2%)
Delta Air Lines, Inc.
6.82%, due 08/10/2022		2,805		1,823
Automobiles (2.0%)
Daimler Finance North America LLC
3.17%, due 03/13/2009 *		500		470
8.00%, due 06/15/2010 ^		3,000		2,651
Beverages (4.2%)
Brown-Forman Corp.
5.20%, due 04/01/2012		3,600		3,462
Sabmiller PLC
6.20%, due 07/01/2011 -144A		3,065		3,112
Building Products (1.6%)
CRH America, Inc.
5.30%, due 10/15/2013		3,140		2,525
Capital Markets (1.9%)
Lazard Group
7.13%, due 05/15/2015		3,750		2,950
Chemicals (1.8%)
Lubrizol Corp.
4.63%, due 10/01/2009 ^		2,000		1,927
Nalco Co.
7.75%, due 11/15/2011		1,000		910
Commercial Banks (2.4%)
Barclays Bank PLC
7.70%, due 04/25/2018 -144A ■ ^ Ž		2,850		1,978
M&I Marshall & Ilsley Bank
3.08%, due 12/04/2012 *		2,000		1,561
Shinsei Finance Cayman, Ltd.
6.42%, due 07/20/2016 -144A ■ Ž		950		214
Construction Materials (1.2%)
Lafarge SA
7.13%, due 07/15/2036		2,600		1,864
Consumer Finance (1.2%)
Cardtronics, Inc.
9.25%, due 08/15/2013 *		835		655
HSBC Finance Capital Trust IX
5.91%, due 11/30/2035		2,250		1,229
Containers & Packaging (2.2%)
Rexam PLC
6.75%, due 06/01/2013 -144A		3,565		3,494
Diversified Financial Services (5.3%)
Galaxy Entertainment Finance Co., Ltd.
9.88%, due 12/15/2012 -144A		1,400		532
Glencore Funding LLC
6.00%, due 04/15/2014 -144A		3,950		3,734
Pemex Finance, Ltd.
9.03%, due 02/15/2011		3,175		3,199
Sensus Metering Systems, Inc.
8.63%, due 12/15/2013		1,000		820
Diversified Telecommunication Services (1.0%)
Verizon Communications, Inc.
8.75%, due 11/01/2018		1,500		1,532
Electric Utilities (5.9%)
DPL, Inc.
8.00%, due 03/31/2009		5,000		5,024
Sempra Energy
7.95%, due 03/01/2010		4,260		4,283
Food & Staples Retailing (3.0%)
Safeway, Inc.
4.95%, due 08/16/2010 ^		3,055		3,014
Stater Brothers Holdings, Inc.
8.13%, due 06/15/2012 ^		2,000		1,780
Food Products (1.6%)
ConAgra Foods, Inc.
9.75%, due 03/01/2021		325		335
Michael Foods, Inc.
8.00%, due 11/15/2013		2,575		2,227

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

19

	Principal		Value
Gas Utilities (0.2%)
Intergas Finance BV
6.38%, due 05/14/2017 -144A	$	740	$	348
Hotels, Restaurants & Leisure (3.5%)
Carrols Corp.
9.00%, due 01/15/2013 ^		500		322
MGM Mirage, Inc.
8.50%, due 09/15/2010		2,000		1,385
Station Casinos, Inc.
6.88%, due 03/01/2016 ^		700		63
Yum! Brands, Inc.
8.88%, due 04/15/2011		3,575		3,665
Independent Power Producers & Energy Traders (3.5%)
AES Gener SA
7.50%, due 03/25/2014 ^		2,000		1,842
Empresa Nacional de Electricidad SA -Class B
8.50%, due 04/01/2009		3,600		3,632
Industrial Conglomerates (1.9%)
Hutchison Whampoa International, Ltd.
5.45%, due 11/24/2010 -144A		1,800		1,698
Susser Holdings LLC
10.63%, due 12/15/2013		1,412		1,200
Insurance (1.7%)
Oil Insurance, Ltd.
7.56%, due 06/30/2011 -144A ■ Ž		2,245		1,136
Reinsurance Group of America, Inc.
6.75%, due 12/15/2065 ■		2,730		1,573
IT Services (0.7%)
ACE Cash Express, Inc.
10.25%, due 10/01/2014 -144A		345		162
Aramark Corp.
8.50%, due 02/01/2015 ^		1,000		855
Machinery (2.0%)
Cummins, Inc.
5.65%, due 03/01/2098		1,000		697
Polypore, Inc.
8.75%, due 05/15/2012		1,550		1,240
Titan International, Inc.
8.00%, due 01/15/2012		1,200		1,068
Media (2.2%)
Comcast Cable Holdings LLC
9.80%, due 02/01/2012		2,000		2,023
Grupo Televisa SA
6.63%, due 03/18/2025		2,000		1,370
Multiline Retail (0.4%)
Neiman-Marcus Group, Inc.
9.00%, due 10/15/2015 ^		1,000		685
Oil, Gas & Consumable Fuels (7.6%)
Burlington Resources, Inc.
9.88%, due 06/15/2010		1,435		1,522
Enterprise Products Operating, LP
8.38%, due 08/01/2066 ■		2,150		1,596
Gazprom International SA
7.20%, due 02/01/2020 -144A		2,496		1,747
Markwest Energy Finance Corp.
8.50%, due 07/15/2016 ^		700		515
Opti Canada, Inc.
8.25%, due 12/15/2014 ^		1,800		1,071
PetroHawk Energy Corp.
9.13%, due 07/15/2013		1,255		966
Petroleum Development Corp.
12.00%, due 02/15/2018 ^		1,000		770
6.88%, due 07/15/2012		3,690		3,770
Paper & Forest Products (1.0%)
Exopack Holding, Inc.
11.25%, due 02/01/2014 ^		2,000		1,540
Professional Services (0.6%)
FTI Consulting, Inc.
7.75%, due 10/01/2016		1,000		928
Real Estate Investment Trusts (2.2%)
Healthcare Realty Trust, Inc.
8.13%, due 05/01/2011		1,480		1,521
Wea Finance LLC / WCI Finance LLC
5.40%, due 10/01/2012 -144A		2,100		1,831
Road & Rail (3.5%)
CSX Corp.
6.75%, due 03/15/2011 ^		3,875		3,740
Kansas City Southern Railway
7.63%, due 12/01/2013		2,110		1,651
Specialty Retail (0.2%)
Penske Auto Group, Inc.
7.75%, due 12/15/2016 ^		750		358
Tobacco (0.2%)
Alliance One International, Inc.
11.00%, due 05/15/2012		425		359
Total Corporate Debt Securities (cost $132,365)				110,269

	Shares
PREFERRED STOCKS (1.4%)
Diversified Telecommunication Services (0.9%)
Centaur Funding Corp. 9.08% -144A ▲		1,661	1,399
Insurance (0.5%)
XL Capital, Ltd. 6.10% * ▲		113,800	712
Total Preferred Stocks (cost $4,941)			2,111

	Principal
CONVERTIBLE BOND (1.3%)
Capital Markets (1.3%)
Merrill Lynch & Co., Inc.
Zero Coupon, due 03/13/2032	$	2,000	2,043
Total Convertible Bond (cost $2,010)			2,043
REPURCHASE AGREEMENT (0.7%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $1,065 on 11/03/2008 à •		1,065	1,065
Total Repurchase Agreement (cost $1,065)			1,065

	Shares
SECURITIES LENDING COLLATERAL (10.5%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.71% à ▲		16,417,280		16,417
Total Securities Lending Collateral (cost $16,417)				16,417
Total Investment Securities (cost $201,142) #			$	169,564

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

20

FORWARD FOREIGN CURRENCY CONTRACTS: ■

				Settlement		Amount in U.S.			Net Unrealized
Currency	(Sold)			Date		Dollars (Sold)			Appreciation
United Kingdom Pound		(2,587	)		01/30/2009		(4,192	)		48

NOTES TO SCHEDULE OF INVESTMENTS:
^	All or a portion of this security is on loan. The value of all securities on loan is $16,077.
*	Floating or variable rate note. Rate is listed as of 10/31/2008.
Ž	The security has a perpetual maturity. The date shown is the next call date.
■	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 10/31/2008.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 5.89%, and a maturity date of 01/01/2037, and with a market value plus accrued interest of $1,088.
à	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 10/31/2008.
#	Aggregate cost for federal income tax purposes is $201,192. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $21 and $31,649, respectively. Net unrealized depreciation for tax purposes is $31,628.
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 10/31/2008, these securities aggregated $30,611, or 19.61% of the Fund’s net assets.
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company
GBP	British Pound Sterling

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

21

Transamerica Growth Opportunities
(unaudited)

MARKET ENVIRONMENT

Faced with many challenges in the twelve months ended October 31, 2008, US equity indices delivered double-digit negative returns across the board. The Russell Midcap^® Growth Index (“Russell Midcap Growth”) declined 42.65%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. This made it more difficult for companies to fund payroll, inventory and other near-term expenses in the face of high borrowing costs. Consumers, already feeling the effects of higher energy and food prices, rising unemployment and lack of wage growth, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the U.S. government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown rose.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Growth Opportunities Class A returned (42.37)%. By comparison, its benchmark, the Russell Midcap Growth, returned (42.65)%.

STRATEGY REVIEW

We attribute the outperformance primarily to stock selections in the producer durables (e.g., W.W. Grainger, Inc. (“Grainger”)), automotive/transportation (e.g., C.H. Robinson Worldwide, Inc. (“C.H. Robinson”)) and consumer discretionary (e.g., Strayer Education, Inc. (“Strayer”)) sectors. Grainger, a building maintenance supply company, has implemented improvement projects within its businesses. This company-specific catalyst enabled Grainger to take market share from smaller competitors that lacked financing opportunities. C.H. Robinson, a freight-logistics company, has been investing in the latest shipping technologies and is taking market share from under-financed competitors. Strayer, a leader in undergraduate and graduate degree programs for working adults, continued to achieve consistent growth, aided in part by the fact that, during periods of economic weakness and when jobs are scarcer, people tend to focus on improving their skills.

Because cash outperformed stocks, a modest cash position at certain times also was a net contributor to performance. Our goal is to be fully invested at all times. However, as certain of our long-term investment themes matured amidst the market volatility, we sold holdings and allowed cash to build modestly, biding our time briefly before buying into new opportunities that became available at more attractive prices as the market fell.

The largest detractors from relative performance were holdings in the healthcare (e.g., ArthroCare Corporation (“ArthroCare”)), technology (e.g., SiRF Technology Holdings, Inc. (“SiRF”)) and consumer staples (e.g., Whole Foods Market, Inc. (“Whole Foods”)) sectors. ArthroCare, which develops medical devices for use in soft-tissue surgery, restated company financials. SiRF, a maker of global positioning systems (“GPS”) semiconductor chips, lost ground as it became apparent that the commoditization of GPS chips was occurring more rapidly than we anticipated. Results for Whole Foods, the organic food grocer, weakened as a slowdown in consumer spending spread to luxury items. We sold all three stocks.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and reduce the severity of the recession. In the interim, high levels of market volatility likely will persist.

Edward S. Han
John J. Huber, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

22

Average Annual Total Return for Periods Ended 10/31/2008

							From			Inception
	1 Year			5 Years			Inception			Date
Class A (NAV)		(42.37	)%		2.00	%		(4.73	)%		3/1/00
Class A (POP)		(45.52	)%		0.84	%		(5.35	)%		3/1/00
Russell Midcap Growth (1)		(42.65	)%		(0.18	)%		(6.16	)%		3/1/00
Class B (NAV)		(42.82	)%		1.15	%		(5.42	)%		3/1/00
Class B (POP)		(45.68	)%		0.96	%		5.42	)%		3/1/00
Class C (NAV)		(42.64	)%		1.25	%		4.93	%		11/11/02
Class C (POP)		(43.22	)%		1.25	%		4.93	%		11/11/02
Class I (NAV)		(41.85	)%		N/A			(5.58	)%		11/15/05

NOTES
(1)	The Russell Midcap Growth Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot invest directly in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this Fund.

23

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	697.45		1.75	%	$	7.47
Hypothetical (b)		1,000.00		1,016.34		1.75			8.87
Class B
Actual		1,000.00		694.22		2.40			10.22
Hypothetical (b)		1,000.00		1,013.07		2.40			12.14
Class C
Actual		1,000.00		696.04		2.33			9.93
Hypothetical (b)		1,000.00		1,013.42		2.33			11.79
Class I
Actual		1,000.00		700.62		0.84			3.59
Hypothetical (b)		1,000.00		1,020.91		0.84			4.27

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At October 31, 2008
(unaudited)

This chart shows the percentage breakdown by Sector of the Fund’s total investment securities. Percentage breakdown of the Short-term category includes Securities Lending Collateral.

24

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (96.8%)
Aerospace & Defense (3.7%)
Precision Castparts Corp.		63,800	$	4,135
Rockwell Collins, Inc.		45,300		1,687
Air Freight & Logistics (7.5%)
CH Robinson Worldwide, Inc. ^		150,400		7,788
Expeditors International of Washington, Inc. ^		124,900		4,078
Auto Components (2.7%)
BorgWarner, Inc.		192,300		4,321
Capital Markets (5.4%)
Greenhill & Co., Inc. ^		62,930		4,151
T. Rowe Price Group, Inc. ^		112,930		4,465
Commercial Banks (3.6%)
Cullen/Frost Bankers, Inc. ^		50,700		2,838
Signature Bank ‡ ^		86,000		2,802
Commercial Services & Supplies (0.8%)
Ritchie Bros. Auctioneers, Inc. ^		67,500		1,253
Communications Equipment (2.8%)
Polycom, Inc. ‡ ^		211,000		4,433
Construction & Engineering (2.4%)
Jacobs Engineering Group, Inc. ‡		103,400		3,767
Diversified Consumer Services (6.9%)
Strayer Education, Inc. ^		48,100		10,884
Diversified Financial Services (2.1%)
CME Group, Inc. -Class A ^		12,000		3,386
Electronic Equipment & Instruments (3.4%)
FLIR Systems, Inc. ‡ ^		41,700		1,339
Trimble Navigation, Ltd. ‡ ^		201,000		4,135
Energy Equipment & Services (2.3%)
Cameron International Corp. ‡ ^		148,000		3,590
Health Care Equipment & Supplies (5.8%)
Idexx Laboratories, Inc. ‡		54,800		1,928
Intuitive Surgical, Inc. ‡ ^		27,700		4,786
Varian Medical Systems, Inc. ‡ ^		56,300		2,562
Health Care Technology (0.9%)
Cerner Corp. ‡ ^		38,000		1,415
Hotels, Restaurants & Leisure (1.1%)
Burger King Holdings, Inc. ^		85,700		1,704
Internet Software & Services (0.4%)
Valueclick, Inc. ‡ ^		96,000		710
IT Services (3.6%)
Alliance Data Systems Corp. ‡ ^		37,200		1,866
NeuStar, Inc. -Class A ‡		197,000		3,881
Leisure Equipment & Products (1.0%)
Hasbro, Inc. ^		55,100		1,602
Life Sciences Tools & Services (6.2%)
Covance, Inc. ‡ ^		81,400		4,070
Techne Corp.		83,755		5,781
Machinery (6.3%)
Donaldson Co., Inc. ^		134,000		4,710
Kennametal, Inc.		213,000		4,520
PACCAR, Inc.		28,000		819
Oil, Gas & Consumable Fuels (0.8%)
Range Resources Corp.		31,300		1,321
Pharmaceuticals (1.4%)
Allergan, Inc.		56,900		2,257
Professional Services (1.2%)
FTI Consulting, Inc. ‡		31,700		1,847
Real Estate Investment Trusts (1.1%)
Plum Creek Timber Co., Inc. ^		48,600		1,812
Software (12.8%)
Activision Blizzard, Inc. ‡ ^		484,000		6,031
Adobe Systems, Inc. ‡		70,700		1,883
Informatica Corp. ‡ ^		132,000		1,855
Intuit, Inc. ‡ ^		238,000		5,964
Macrovision Solutions Corp. ‡ ^		104,000		1,152
Salesforce.com, Inc. ‡ ^		107,400		3,325
Specialty Retail (3.5%)
Guess, Inc. ^		257,900		5,614
Textiles, Apparel & Luxury Goods (1.8%)
Carter’s, Inc. ‡ ^		136,500		2,899
Trading Companies & Distributors (5.3%)
WW Grainger, Inc. ^		106,200		8,345
Total Common Stocks (cost $185,349)				153,711

	Principal		Value
REPURCHASE AGREEMENT (3.8%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $6,116 on 11/03/2008 à •	$	6,116		6,116
Total Repurchase Agreement (cost $6,116)				6,116

	Shares
SECURITIES LENDING COLLATERAL (25.2%)
State Street Navigator Securities Lending Trust — Prime Portfolio, 2.71% à ▲		40,055,670		40,056
Total Securities Lending Collateral (cost $40,056)				40,056
Total Investment Securities (cost $231,521) #			$	199,883

NOTES TO SCHEDULE OF INVESTMENTS:
^	All or a portion of this security is on loan. The value of all securities on loan is $39,145.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 5.00%, and a maturity date of 12/01/2019, and with a market value plus accrued interest of $6,239.
à	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 10/31/2008.
#	Aggregate cost for federal income tax purposes is $231,906. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $8,112 and $40,135, respectively. Net unrealized depreciation for tax purposes is $32,023.

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

25

Transamerica High Yield Bond
(unaudited)

MARKET ENVIRONMENT

The turmoil on Wall Street has now infected Main Street. What began as a sell-off in the small sub-prime mortgage market has snowballed into a global de-leveraging within the financial community. As underlying collateral erodes in price, asset write-downs have called many financial institutions’ capital adequacy into question. As these institutions struggle to maintain their balance sheet, the lifeline of credit to individuals and businesses alike has been all but terminated. The result has been a rapidly deteriorating real economy over the past few months with almost every economic indicator registering clear signs of impending recession.

The authorities have not been oblivious to the seizing-up of financial markets. All stops have been pulled out as the Federal Reserve Board (“Fed”) and US Treasury have introduced numerous and massive liquidity measures into the system to revive the ailing credit markets. The risk of a significant recession and an increasing number of defaults pose the most challenging risk to the portfolio over the next fiscal year.

PERFORMANCE

For the year ended October 31, 2008, Transamerica High Yield Bond Class A returned (25.46)%. By comparison, its benchmark, the Merrill Lynch High Yield Cash Pay Index (“Merrill Lynch High Yield”), returned (26.43)%.

STRATEGY REVIEW

The portfolio’s out-performance for the fiscal year versus Merrill Lynch High Yield was partially attributable to the portfolio’s underweight in CCC securities. For the year, we maintained the allocation to CCC securities in the range of 6-8% of portfolio assets, versus an 18-20% range of CCC securities for the benchmark. The Merrill Lynch CCC index under-performed BB’s by 15.5% and Single B’s by 12.0% during the one year period ended October 31, 2008.

The benefit from our over-weighting in higher rated securities was partially offset by underperformance of several sectors and securities. Negative sector contributors for the previous fiscal year include our over-weight in the gaming sector and underweight in wireless telecommunications. On an individual name basis, over-weight allocations to VeraSun Energy Corporation, R.H. Donnelley Corporation, Nuveen Investments, Inc., Idearc Inc., Smurfit-Stone Container Corporation, and The Bon-Ton Stores, Inc. hurt performance. Positive sector contributors include our underweight in automotive and banking, as well as an overweight in aerospace / defense.

We believe fundamentals will remain challenging over the next twelve months. Unemployment rates are increasing, consumers are retrenching, and profits are declining. The tight credit markets are forcing companies to re-evaluate all non-essential capital spending as access to capital is expensive for high quality companies and inaccessible for many lower quality high yield issuers. In addition, technicals in the high yield market remain very weak as aggressive selling by hedge funds and other levered investors force prices lower.

These weak fundamentals and technicals present a challenging backdrop for the high yield investing. However, the relentless selling has pushed valuations to levels never seen before in the high yield market. As of October 31, 2008, the high yield market is trading approximately 350bps wider than any previous time period.

Currently the portfolio is positioned relatively conservatively, with a low (6.2%) allocation to CCC securities. We believe this defensive positioning is prudent given the weak backdrop and forecast for defaults to increase dramatically from a low 3.1% trailing twelve month rate as of October 31, 2008. In addition, the BB and Single B sub-sectors appear to be the cheapest on a historical basis.

We believe our current strategy has the portfolio set to outperform in the current environment. However, we also believe the recent forced selling is creating opportunities and will look to capitalize on those opportunities as prices dramatically overshoot fair value.

David R. Halfpap, CFA
Bradley J. Beman, CFA, CPA
Benjamin D. Miller, CFA

Co-Portfolio Managers
AEGON USA Investment Management, LLC

26

Average Annual Total Return for Periods Ended 10/31/2008

										From			Inception
	1 Year			5 Years			10 Years			Inception			Date
Class A (NAV)		(25.46	)%		(0.78	)%		2.01	%		6.61	%		6/14/85
Class A (POP)		(28.96	)%		(1.74	)%		1.51	%		6.39	%		6/14/85
Merrill Lynch U.S. High Yield, Cash Pay(1)		(26.43	)%		0.18	%		2.88	%		7.58	%		6/14/85
Class B (NAV)		(26.04	)%		(1.50	)%		1.47	%		3.05	%		10/1/95
Class B (POP)		(29.50	)%		(1.65	)%		1.47	%		3.05	%		10/1/95
Class C (NAV)		(25.89	)%		(1.47	)%		N/A			1.76	%		11/11/02
Class C (POP)		(26.59	)%		(1.47	)%		N/A			1.76	%		11/11/02
Class I (NAV)		(25.05	)%		N/A			N/A			(2.72	)%		11/8/04

NOTES
(1)	The Merrill Lynch U.S. High Yield, Cash Pay Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot invest directly in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 4.75% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

Investments in high-yield bonds (“junk bonds”) may be subject to greater volatility and risks as the income derived from these securities is not guaranteed and may be unpredictable. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this Fund.

27

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	752.37		1.16	%	$	5.11
Hypothetical (b)		1,000.00		1,019.30		1.16			5.89
Class B
Actual		1,000.00		748.40		1.84			8.09
Hypothetical (b)		1,000.00		1,015.89		1.84			9.32
Class C
Actual		1,000.00		750.43		1.79			7.88
Hypothetical (b)		1,000.00		1,016.14		1.79			9.07
Class I
Actual		1,000.00		753.75		0.65			2.87
Hypothetical (b)		1,000.00		1,021.87		0.65			3.30

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

28

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Bond Credit Quality (Moody’s Ratings)
At October 31, 2008
(unaudited)

Credit Rating Definitions:

Aaa	Obligations rated Aaa are judged to be of the highest quality, with minimal credit risk.
Aa	Obligations rated Aa are judged to be of high quality, and are subject to very low credit risk, but their susceptibility to long-term risks appears somewhat greater.
A	Obligations rated A are considered upper-medium grade and are subject to low credit risk, but have elements present that suggest a susceptibility to impairment over the long term.
Baa	Obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics.
Ba	Obligations rated Ba are judged to have speculative elements and are subject to substantial credit risk.
B	Obligations rated B are considered speculative, are subject to high credit risk, and have generally poor credit risk.
Caa	Obligations rated Caa are judged to be of poor standing, are subject to very high credit risk, and have extremely poor credit quality.
Ca	Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.
C	Obligations rated C are the lowest rated class of bonds and are typically in default, with little prospect for recovery of principal or interest.
NR	Not rated.
WR	Withdrawn rating.

Note: Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. Percentage breakdown of the NR category includes Securities Lending Collateral.

29

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Principal		Value
CORPORATE DEBT SECURITIES (92.8%)
Aerospace & Defense (2.6%)
Alliant Techsystems, Inc.
6.75%, due 04/01/2016	$	5,110	$	4,216
BE Aerospace, Inc.
8.50%, due 07/01/2018 ^		1,800		1,548
DRS Technologies, Inc.
6.88%, due 11/01/2013		2,725		2,698
L-3 Communications Corp.
6.13%, due 07/15/2013 ^		3,260		2,810
7.63%, due 06/15/2012		1,000		927
Auto Components (0.6%)
Lear Corp.
5.75%, due 08/01/2014 ^		3,955		1,582
TRW Automotive, Inc.
7.00%, due 03/15/2014 -144A ^ §		2,000		1,180
Automobiles (0.8%)
General Motors Corp.
7.13%, due 07/15/2013 ^		1,500		510
7.20%, due 01/15/2011 ^		5,265		2,132
8.25%, due 07/15/2023 ^		2,710		867
Beverages (1.8%)
Constellation Brands, Inc.
7.25%, due 09/01/2016		6,900		5,727
Cott Beverages USA, Inc.
8.00%, due 12/15/2011 ^		3,350		2,177
Building Products (1.3%)
Owens Corning, Inc.
7.00%, due 12/01/2036 *		3,690		2,337
Ply Gem Industries, Inc.
11.75%, due 06/15/2013		5,770		3,808
Capital Markets (0.3%)
Nuveen Investments, Inc.
10.50%, due 11/15/2015 -144A		4,310		1,164
Chemicals (2.4%)
Huntsman International LLC
7.38%, due 01/01/2015 ^ *		3,075		2,675
Huntsman LLC
11.63%, due 10/15/2010		965		955
Ineos Group Holdings PLC
8.50%, due 02/15/2016 -144A		2,570		951
Lyondellbasell Industries AF SCA
8.38%, due 08/15/2015 -144A		5,230		1,830
Noranda Aluminium Acquisition Corp.
6.83%, due 05/15/2015 *		1,800		810
Nova Chemicals Corp.
5.95%, due 11/15/2013 *		5,400		3,618
Commercial Banks (0.4%)
Wells Fargo Capital XV
9.75%, due 12/29/2049 Ž		2,000		1,940
Commercial Services & Supplies (1.0%)
Allied Waste North America, Inc.
7.88%, due 04/15/2013		4,905		4,562
Communications Equipment (0.3%)
Nortel Networks, Ltd.
9.00%, due 07/15/2011 *		1,230		667
10.75%, due 07/15/2016 -144A		1,820		960
Computers & Peripherals (1.0%)
Seagate Technology, Inc.
6.38%, due 10/01/2011		4,730		4,210
6.80%, due 10/01/2016		950		665
Consumer Finance (3.2%)
Ford Motor Credit Co. LLC
7.88%, due 06/15/2010		1,400		941
9.88%, due 08/10/2011 ^		8,575		5,404
GMAC LLC
6.75%, due 12/01/2014		10,164		5,133
7.25%, due 03/02/2011 ^		4,975		3,062
Containers & Packaging (3.4%)
Graphic Packaging International, Inc.
8.50%, due 08/15/2011 ^		5,885		4,914
Jefferson Smurfit Corp. US
8.25%, due 10/01/2012		7,745		3,950
Owens Brockway Glass Container, Inc.
6.75%, due 12/01/2014		5,535		4,788
8.25%, due 05/15/2013		2,000		1,870
Diversified Consumer Services (0.8%)
Service Corp. International
6.75%, due 04/01/2016		4,950		3,787
7.00%, due 06/15/2017		175		133
Diversified Financial Services (3.5%)
AES Red Oak LLC
9.20%, due 11/30/2029		2,125		1,817
CDX North America High Yield
8.88%, due 06/29/2013 -144A ^		10,000		8,300
Firekeepers Development Authority
13.88%, due 05/01/2015 -144A ^		2,800		1,988
Hawker Beechcraft Acquisition Company LLC
8.50%, due 04/01/2015		3,740		2,244
JPMorgan Chase & Co.
7.90%, due 04/30/2018 Ž		2,000		1,621
Diversified Telecommunication Services (5.9%)
Cincinnati Bell, Inc.
7.00%, due 02/15/2015		1,300		884
7.25%, due 07/15/2013		1,625		1,235
Fairpoint Communications, Inc.
13.13%, due 04/01/2018 -144A		5,020		3,539
Frontier Communications Corp.
6.63%, due 03/15/2015		1,360		972
9.00%, due 08/15/2031		5,415		2,924
Level 3 Financing, Inc.
9.25%, due 11/01/2014		2,500		1,425
Qwest Communications International, Inc.
7.50%, due 02/15/2014		7,515		5,130
Sprint Capital Corp.
6.90%, due 05/01/2019 ^		5,570		3,927
Telcordia Technologies, Inc.
8.50%, due 07/15/2012 -144A *		4,535		2,948
Windstream Corp.
8.63%, due 08/01/2016		5,250		3,964
Electric Utilities (2.5%)
Intergen NV
9.00%, due 06/30/2017 -144A		5,100		4,080
Ipalco Enterprises, Inc.
7.25%, due 04/01/2016 -144A		1,365		1,140
Texas Competitive Electric Holdings Co. LLC
10.25%, due 11/01/2015 -144A		8,545		6,516

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

30

	Principal		Value
Electronic Equipment & Instruments (0.5%)
NXP BV / NXP Funding LLC
7.50%, due 10/15/2013 ^ *	$	5,440	$	2,394
Food & Staples Retailing (1.1%)
Supervalu, Inc.
7.50%, due 11/15/2014		6,000		4,920
Food Products (3.3%)
Dean Foods Co.
7.00%, due 06/01/2016 ^		4,550		3,458
Del Monte Corp.
6.75%, due 02/15/2015		1,075		887
8.63%, due 12/15/2012 *		3,190		2,887
Dole Food Co., Inc.
7.25%, due 06/15/2010		2,300		1,679
Smithfield Foods, Inc.
7.75%, due 07/01/2017 ^		6,775		4,308
Tyson Foods, Inc.
7.00%, due 05/01/2018		2,400		1,628
Health Care Equipment & Supplies (1.9%)
Boston Scientific Corp.
6.25%, due 11/15/2015 *		4,100		3,300
Cooper Cos., Inc.
7.13%, due 02/15/2015		3,145		2,516
Universal Hospital Services, Inc.
6.30%, due 06/01/2015 *		1,500		1,020
8.50%, due 06/01/2015		2,300		1,840
Health Care Providers & Services (5.6%)
Community Health Systems, Inc.
8.88%, due 07/15/2015 ^		8,250		6,909
HCA, Inc.
9.25%, due 11/15/2016 ^		8,875		7,544
Omnicare, Inc.
6.13%, due 06/01/2013		3,900		3,198
6.88%, due 12/15/2015		600		462
US Oncology, Inc.
9.00%, due 08/15/2012		8,975		7,449
Hotels, Restaurants & Leisure (5.6%)
Harrah’s Operating Co., Inc.
10.75%, due 02/01/2016 -144A §		9,750		3,169
Mashantucket Western Pequot Tribe
8.50%, due 11/15/2015 -144A		6,000		3,300
MGM Mirage, Inc.
5.88%, due 02/27/2014 ^		2,500		1,481
6.75%, due 04/01/2013 ^		3,000		1,875
7.50%, due 06/01/2016 ^		3,125		1,844
Mohegan Tribal Gaming Authority
7.13%, due 08/15/2014 ^		3,275		1,965
Royal Caribbean Cruises, Ltd.
7.00%, due 06/15/2013		4,850		3,371
Seminole Hard Rock Entertainment, Inc.
5.32%, due 03/15/2014 -144A *		5,955		3,930
Station Casinos, Inc.
6.00%, due 04/01/2012 ^		5,485		2,016
6.50%, due 02/01/2014 ^		2,620		285
Vail Resorts, Inc.
6.75%, due 02/15/2014 ^		1,325		1,014
Wynn Las Vegas Capital Corp.
6.63%, due 12/01/2014		2,200		1,623
Household Durables (3.4%)
Centex Corp.
4.55%, due 11/01/2010		1,400		1,092
5.25%, due 06/15/2015		925		546
5.70%, due 05/15/2014		2,000		1,340
DR Horton, Inc.
4.88%, due 01/15/2010		4,000		3,430
5.25%, due 02/15/2015		2,008		1,135
Jarden Corp.
7.50%, due 05/01/2017 ^		3,390		2,526
Meritage Homes Corp.
6.25%, due 03/15/2015		3,795		1,945
Pulte Homes, Inc.
5.20%, due 02/15/2015		2,000		1,240
7.88%, due 08/01/2011		2,500		2,119
Independent Power Producers & Energy Traders (3.3%)
Edison Mission Energy
7.50%, due 06/15/2013		3,725		3,138
7.75%, due 06/15/2016		2,000		1,605
LSP Energy, LP/LSP Batesville Funding Corp.
7.16%, due 01/15/2014		3,657		3,456
NRG Energy, Inc.
7.25%, due 02/01/2014		4,020		3,517
7.38%, due 01/15/2017		3,000		2,592
Insurance (0.2%)
American International Group, Inc.
8.25%, due 08/15/2018 -144A		2,000		824
IT Services (4.9%)
Aramark Corp.
8.50%, due 02/01/2015 ^		7,800		6,669
Broadridge Financial Solutions, Inc.
6.13%, due 06/01/2017		775		553
Ceridian Corp.
11.25%, due 11/15/2015 -144A		2,930		1,824
12.25%, due 11/15/2015 -144A Ω ^		325		202
DI Finance/Dyncorp International
9.50%, due 02/15/2013 -144A		1,700		1,458
9.50%, due 02/15/2013		3,305		2,826
SunGard Data Systems, Inc.
9.13%, due 08/15/2013		5,360		4,449
10.25%, due 08/15/2015		450		315
Unisys Corp.
8.00%, due 10/15/2012 ^		2,750		1,736
12.50%, due 01/15/2016		3,200		2,232
Machinery (0.7%)
Case New Holland, Inc.
7.13%, due 03/01/2014		4,225		3,148
Media (8.2%)
Cablevision Systems Corp.
8.00%, due 04/15/2012 ^ *		1,729		1,455
CCH I LLC / CCH I Capital Corp.
11.00%, due 10/01/2015 ^		4,075		1,834
Charter Communications Operating LLC
8.38%, due 04/30/2014 -144A		3,500		2,537
CSC Holdings, Inc.
7.63%, due 07/15/2018		4,850		3,520
8.50%, due 06/15/2015 -144A		2,925		2,472
DEX Media, Inc.
8.00%, due 11/15/2013		2,500		550

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

31

	Principal		Value
Media (continued)
DIRECTV Financing Co.
7.63%, due 05/15/2016 -144A	$	2,035	$	1,709
8.38%, due 03/15/2013		3,850		3,609
Echostar DBS Corp.
6.63%, due 10/01/2014		3,740		3,001
7.00%, due 10/01/2013		1,045		867
7.75%, due 05/31/2015		3,080		2,502
Idearc, Inc.
8.00%, due 11/15/2016 ^		7,855		1,090
Intelsat Corp.
9.25%, due 06/15/2016 -144A		2,715		2,253
Intelsat Subsidiary Holding Co., Ltd.
8.50%, due 01/15/2013 -144A		1,420		1,235
Knight-Ridder, Inc.
5.75%, due 09/01/2017		1,675		486
Lamar Media Corp.
6.63%, due 08/15/2015		1,525		1,121
Liberty Media LLC
5.70%, due 05/15/2013 ^		2,500		1,739
Medianews Group, Inc.
6.88%, due 10/01/2013		1,500		142
Quebecor Media, Inc.
7.75%, due 03/15/2016		1,250		866
RH Donnelley Corp.
8.88%, due 10/15/2017 ^		90		19
11.75%, due 05/15/2015 -144A ^		8,507		3,318
Univision Communications, Inc.
9.75%, due 03/15/2015 -144A §		2,325		477
Videotron Ltee
6.88%, due 01/15/2014		1,825		1,515
Metals & Mining (0.6%)
Steel Dynamics, Inc.
7.38%, due 11/01/2012		3,950		2,938
Multiline Retail (0.2%)
Bon-Ton Department Stores, Inc.
10.25%, due 03/15/2014 ^		5,125		820
Multi-Utilities (0.3%)
CMS Energy Corp.
6.55%, due 07/17/2017		840		644
6.88%, due 12/15/2015		1,340		1,096
Oil, Gas & Consumable Fuels (10.7%)
Chesapeake Energy Corp.
6.88%, due 01/15/2016		2,000		1,605
7.00%, due 08/15/2014 ^		3,400		2,728
7.25%, due 12/15/2018		830		627
7.63%, due 07/15/2013		100		85
Cimarex Energy Co.
7.13%, due 05/01/2017		1,295		1,036
Connacher Oil And Gas, Ltd.
10.25%, due 12/15/2015 -144A		2,480		1,736
Dynegy Holdings, Inc.
7.50%, due 06/01/2015		2,975		2,172
7.75%, due 06/01/2019		4,440		2,975
El Paso Corp.
6.88%, due 06/15/2014		1,060		844
7.25%, due 06/01/2018 ^		3,100		2,325
Forest Oil Corp.
7.25%, due 06/15/2019 -144A		2,000		1,360
7.75%, due 05/01/2014		275		220
Kinder Morgan Finance Co.
5.70%, due 01/05/2016 ^		5,810		4,503
Mariner Energy, Inc.
8.00%, due 05/15/2017		1,555		917
Newfield Exploration Co.
6.63%, due 09/01/2014		2,175		1,680
7.13%, due 05/15/2018 ^		295		208
Opti Canada, Inc.
7.88%, due 12/15/2014		2,500		1,500
8.25%, due 12/15/2014		800		476
Peabody Energy Corp.
6.88%, due 03/15/2013		1,350		1,185
7.38%, due 11/01/2016		5,220		4,411
Pioneer Natural Resources Co.
6.65%, due 03/15/2017		3,225		2,429
Plains Exploration & Production Co.
7.00%, due 03/15/2017		1,700		1,113
7.75%, due 06/15/2015		3,450		2,518
Roseton/Danskammer
7.67%, due 11/08/2016		800		601
Sandridge Energy, Inc.
8.00%, due 06/01/2018 -144A		1,530		1,017
Tesoro Corp.
6.25%, due 11/01/2012		4,775		3,653
6.63%, due 11/01/2015 ^		675		459
Verasun Energy Corp.
9.38%, due 06/01/2017 ^ Џ		4,325		368
9.88%, due 12/15/2012 ^ Џ		3,140		1,287
Whiting Petroleum Corp.
7.00%, due 02/01/2014		3,830		2,719
Paper & Forest Products (4.2%)
Abitibi-Consolidated, Inc.
8.55%, due 08/01/2010 ^		1,460		365
8.85%, due 08/01/2030 ^		5,015		928
13.75%, due 04/01/2011 -144A		3,200		2,528
Boise Cascade LLC
7.13%, due 10/15/2014		896		502
Domtar Corp.
7.88%, due 10/15/2011		5,720		4,919
Georgia-Pacific LLC
7.00%, due 01/15/2015 -144A		7,825		5,751
7.13%, due 01/15/2017 -144A		1,153		801
Newpage Corp.
10.00%, due 05/01/2012		1,500		1,020
Westvaco Corp.
8.20%, due 01/15/2030 ^		2,300		1,837
Real Estate Investment Trusts (0.5%)
Host Hotels & Resorts, Inc.
7.13%, due 11/01/2013 ^		3,155		2,477
Real Estate Management & Development (0.4%)
Realogy Corp.
10.50%, due 04/15/2014 ^		5,305		1,698
Road & Rail (1.8%)
Avis Budget Car Rental
7.75%, due 05/15/2016 ^ *		6,020		2,197
Hertz Corp.
8.88%, due 01/01/2014		4,150		3,029
Kansas City Southern Railway
8.00%, due 06/01/2015		3,235		2,661

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

32

	Principal		Value
Semiconductors & Semiconductor Equipment (1.4%)
Freescale Semiconductor, Inc.
8.88%, due 12/15/2014	$	7,345	$	3,269
Spansion, Inc.
5.94%, due 06/01/2013 -144A *		3,960		851
Stats ChipPAC, Ltd.
6.75%, due 11/15/2011		2,750		2,337
Software (0.6%)
First Data Corp.
9.88%, due 09/24/2015		4,136		2,647
Textiles, Apparel & Luxury Goods (1.3%)
Levi Strauss & Co.
8.88%, due 04/01/2016 ^		1,200		786
9.75%, due 01/15/2015 ^		7,480		5,236
Wireless Telecommunication Services (0.3%)
Nextel Communications, Inc.
6.88%, due 10/31/2013		2,225		1,268
Total Corporate Debt Securities (cost $601,570)				424,030
REPURCHASE AGREEMENT (3.9%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $17,823 on 11/03/2008. ◊ •		17,823		17,823
Total Repurchase Agreement (cost $17,823)				17,823
	Shares
SECURITIES LENDING COLLATERAL (14.6%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.71% ◊ ▲		66,811,083		66,811
Total Securities Lending Collateral (cost $66,811)				66,811
Total Investment Securities (cost $686,204)			$	508,664

NOTES TO SCHEDULE OF INVESTMENTS:
^	All or a portion of this security is on loan. The value of all securities on loan is $65,402.
*	Floating or variable rate note. Rate is listed as of 10/31/2008.
Ž	The security has a perpetual maturity. The date shown is the next call date.
Ω	Payment in-kind.
Џ	In default.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 4.00%, and a maturity date of 06/01/2014, and with a market value plus accrued interest of $18,179.
§	Illiquid. At 10/31/2008, these securities aggregated $4,826, or 1.06% of the Fund’s net assets.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 10/31/2008.
#	Aggregate cost for federal income tax purposes is $686,319. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $919 and $178,574, respectively. Net unrealized depreciation for tax purposes is $177,655.
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 10/31/2008, these securities aggregated $77,348, or 16.89% of the Fund’s net assets.
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

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

33

Transamerica Legg Mason Partners All Cap
(unaudited)

MARKET ENVIRONMENT

The stock market experienced rising volatility during the last fiscal year, with this reaching very high levels toward the end of the year. Concerns over the financial conditions within the banking and financial services sectors led to sharp declines in most stock indices. Exacerbating the decline in equity values were the actions of hedge funds which apparently had to liquidate some of their major holdings in the last quarter of fiscal 2008.

Outside of the financial services sector, many companies are in the strongest cash and financial positions in history. There is a long list of publicly traded corporations whose enterprise values are less than equal to 90% of the total value of their common stocks. In other words, many companies have at least a net cash position of 10% of the value of their shares outstanding. Because of this, the market performance of many companies seemed divorced from reality as the fiscal year wore on. Economic uncertainties accounted for some of this but we believe the action of hedge funds was equally or more important. In recent years, hedge funds have made up an increasing percentage of daily trading and often times their focus is short-term in nature. The use of leverage by many hedge funds accentuated their effect on the stock market, especially during the third quarter in 2008.

Our principal response was to do our best to avoid the “problem companies” in fiscal 2008. In the last market cycle (2001-2002), the poster children for bad corporate behavior were Enron Corporation, WorldCom, and Adelphia Communications Corporation. During 2008, The Bear Stearns Companies Inc., American International Group, Inc., Lehman Brothers Holdings Inc., Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”), the latter two Government Sponsored Enterprises all declared bankruptcy or were forced into receivership. We held none of these companies in the portfolio during the periods leading up to their bankruptcies.

With the stock market focusing on the credit and liquidity problems in the banking sector, we focused on those companies whose balance sheets were strong and whose longer term business prospects were sound, in our opinion. Although we are an all-cap manager, analysis suggested that larger companies represented a very attractive segment of the market on both relative and absolute basis. Larger companies seem as cheap as they have been at any time in the last 25 years. They now make up a larger percentage of our portfolios than at any time in the last 5 years.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Legg Mason Partners All Cap Class A returned (35.81)%. By comparison, its benchmark, the Russell 3000 Index, returned (36.60)%.

STRATEGY REVIEW

For the fiscal year, stock selection in the financials and consumer staples sectors contributed to absolute performance while energy and information technology sectors detracted the most from absolute performance.

The top stock contributors to portfolio performance during the fiscal year were Wal-Mart Stores, Inc. (“Wal-Mart”), The Chubb Corporation (“Chubb”), Visa Inc., Verisign Inc., and AirTran Holdings Inc. The largest detractors from performance were Motorola, Inc.,Vodafone Group Plc — ADS, General Electric Company, Merrill Lynch & Co., Inc., and Samsung Electronics Co., Ltd. GDR (“Samsung”).

John J. Goode
Peter J. Hable

Co-Portfolio Managers
ClearBridge Advisors, LLC

34

Average Annual Total Return for Periods Ended 10/31/2008

							From			Inception
	1 Year			5 Years			Inception			Date
Class A (NAV)		(35.81	)%		(1.12	)%		3.47	%		3/1/99
Class A (POP)		(39.33	)%		(2.23	)%		2.87	%		3/1/99
Russell 3000(1)		(36.60	)%		0.46	%		(0.15	)%		3/1/99
Class B (NAV)		(36.18	)%		(1.78	)%		2.91	%		3/1/99
Class B (POP)		(39.06	)%		(1.93	)%		2.91	%		3/1/99
Class C (NAV)		(36.17	)%		(1.74	)%		3.21	%		11/11/02
Class C (POP)		(36.75	)%		(1.74	)%		3.21	%		11/11/02

NOTES
(1)	The Russell 3000 Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot invest directly in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this Fund.

35

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	692.91		1.55	%	$	6.60
Hypothetical (b)		1,000.00		1,017.34		1.55			7.86
Class B
Actual		1,000.00		690.95		2.20			9.35
Hypothetical (b)		1,000.00		1,014.08		2.20			11.14
Class C
Actual		1,000.00		691.43		2.11			8.97
Hypothetical (b)		1,000.00		1,014.53		2.11			10.68

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At October 31, 2008
(unaudited)

This chart shows the percentage breakdown by Sector of the Fund’s total investment securities. Percentage breakdown of the Short-term category includes Securities Lending Collateral.

36

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (100.0%)
Aerospace & Defense (5.6%)
Boeing Co.		21,270	$	1,112
Honeywell International, Inc.		37,120		1,130
Raytheon Co.		40,360		2,063
Air Freight & Logistics (2.2%)
United Parcel Service, Inc. -Class B ^		31,900		1,684
Building Products (0.4%)
Simpson Manufacturing Co., Inc. ^		13,130		302
Capital Markets (1.3%)
Franklin Resources, Inc. ^		14,380		978
Chemicals (1.6%)
E.I. duPont de Nemours & Co. ^		39,250		1,256
Commercial Banks (4.6%)
Comerica, Inc. ^		35,170		970
East-West Bancorp, Inc. ^		18,105		314
State Street Corp. ◊		41,760		1,810
Synovus Financial Corp.		47,700		493
Communications Equipment (2.2%)
Cisco Systems, Inc. ‡		80,240		1,426
Telefonaktiebolaget LM Ericsson            ADR ^		48,900		346
Computers & Peripherals (2.2%)
International Business Machines Corp. ^		17,980		1,672
Construction & Engineering (0.3%)
Perini Corp. ‡ ^		10,900		207
Consumer Finance (1.1%)
American Express Co.		30,750		846
Diversified Financial Services (4.8%)
Bank of America Corp. ^		35,700		863
JPMorgan Chase & Co.		68,860		2,840
Energy Equipment & Services (6.7%)
Baker Hughes, Inc. ^		32,500		1,136
Halliburton Co. ^		55,880		1,106
Schlumberger, Ltd. ^		28,340		1,464
Transocean, Inc. ^		6,936		571
Weatherford International, Ltd. ‡		53,120		897
Food & Staples Retailing (3.7%)
Wal-Mart Stores, Inc. ^		50,760		2,833
Food Products (4.1%)
Kraft Foods, Inc. -Class A ^		44,846		1,307
Unilever PLC            ADR ^		41,609		939
Unilever PLC		41,575		934
Industrial Conglomerates (3.5%)
General Electric Co.		72,020		1,405
McDermott International, Inc. ‡		74,590		1,278
Insurance (5.3%)
Allied World Assurance Co. Holdings, Ltd.		15,670		502
Chubb Corp. ^		68,310		3,540
Internet Software & Services (1.4%)
eBay, Inc. ‡ ^		70,860		1,082
Life Sciences Tools & Services (1.0%)
ENZO Biochem, Inc. ‡ ^		136,137		785
Machinery (2.5%)
Caterpillar, Inc. ^		24,070		919
Dover Corp.		25,610		814
PACCAR, Inc. ^		6,000		175
Media (4.6%)
Time Warner, Inc. ^		137,170		1,384
Walt Disney Co. ^		82,840		2,146
Metals & Mining (1.4%)
Barrick Gold Corp.		37,290		847
Nucor Corp.		5,700		231
Oil, Gas & Consumable Fuels (4.4%)
Anadarko Petroleum Corp.		27,740		979
Chevron Corp.		9,960		743
ConocoPhillips		8,320		433
Exxon Mobil Corp. ^		12,760		946
Murphy Oil Corp. ^		3,800		192
Paper & Forest Products (1.1%)
Weyerhaeuser Co. ^		22,820		872
Pharmaceuticals (12.9%)
Abbott Laboratories		43,170		2,381
Johnson & Johnson		35,190		2,159
Merck & Co., Inc. ^		33,558		1,039
Novartis AG ADR		50,270		2,563
Wyeth		58,390		1,879
Professional Services (0.2%)
Robert Half International, Inc. ^		9,900		187
Real Estate Investment Trusts (0.1%)
LaSalle Hotel Properties		4,800		68
Semiconductors & Semiconductor Equipment (11.6%)
Applied Materials, Inc. ^		140,270		1,811
Novellus Systems, Inc. ‡ ^		63,030		996
Samsung Electronics Co., Ltd. -144A GDR		13,300		2,736
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		159,057		1,314
Texas Instruments, Inc.		102,470		2,004
Verigy, Ltd. ‡ ^		10,941		159
Software (3.1%)
Citrix Systems, Inc. ‡ ^		9,100		234
Lawson Software, Inc. ‡ ^		39,190		208
Microsoft Corp.		87,390		1,951
Specialty Retail (4.0%)
Gap, Inc. ^		56,030		725
Home Depot, Inc. ^		84,970		2,004
Penske Auto Group, Inc. ^		22,600		185
Williams-Sonoma, Inc. ^		26,160		217
Wireless Telecommunication Services (2.1%)
Vodafone Group PLC ADR		85,687		1,651
Total Common Stocks (cost $87,783)				77,243
	Principal
REPURCHASE AGREEMENT (0.2%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $183 on 11/03/2008 ◊ •	$	183		183
Total Repurchase Agreement (cost $183)				183
	Shares
SECURITIES LENDING COLLATERAL (25.9%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.71% ◊▲		19,953,111		19,953
Total Securities Lending Collateral (cost $19,953)				19,953
Total Investment Securities (cost $107,919) #			$	97,379

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

37

NOTES TO SCHEDULE OF INVESTMENTS:
^	All or a portion of this security is on loan. The value of all securities on loan is $19,464.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 5.00%, and a maturity date of 12/01/2019, and with a market value plus accrued interest of $187.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 10/31/2008.
#	Aggregate cost for federal income tax purposes is $108,125. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $5,738 and $16,484, respectively. Net unrealized depreciation for tax purposes is $10,746.
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 10/31/2008, these securities aggregated $2,736, or 3.54% of the Fund’s net assets.
ADR	American Depositary Receipt
GDR	Global Depositary Receipt
PLC	Public Limited Company

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

38

Transamerica Money Market
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	1,008.96		0.83	%	$	4.19
Hypothetical (b)		1,000.00		1,020.96		0.83			4.22
Class B
Actual		1,000.00		1,005.64		1.48			7.46
Hypothetical (b)		1,000.00		1,017.70		1.48			7.51
Class C
Actual		1,000.00		1,005.81		1.48			7.46
Hypothetical (b)		1,000.00		1,017.70		1.48			7.51
Class I
Actual		1,000.00		1,010.62		0.48			2.43
Hypothetical (b)		1,000.00		1,022.72		0.48			2.44

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Industry
At October 31, 2008
(unaudited)

This chart shows the percentage breakdown by Industry of the Fund’s total investment securities.

39

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Principal		Value
COMMERCIAL PAPER (100.1%)
Beverages (3.5%)
Coca-Cola Co.
1.90%, due 01/08/2009	$	3,550	$	3,537
2.25%, due 01/06/2009		5,900		5,876
Capital Markets (0.6%)
Merrill Lynch & Co., Inc.
2.75%, due 11/25/2008		1,500		1,497
Commercial Banks (22.2%)
Barclays Bank PLC
2.76%, due 11/13/2008		3,400		3,397
3.12%, due 11/24/2008		5,700		5,689
3.25%, due 11/18/2008		2,200		2,197
4.23%, due 11/14/2008		2,100		2,097
Canadian Imperial Holdings, Inc.
2.81%, due 11/05/2008		1,800		1,799
Royal Bank of Scotland PLC
2.63%, due 11/04/2008		3,400		3,399
2.75%, due 11/06/2008		1,900		1,899
2.85%, due 12/05/2008 - 12/10/2008		8,200		8,171
State Street Corp.
2.75%, due 11/26/2008		1,100		1,098
3.50%, due 11/17/2008 - 11/18/2008 ◊		12,300		12,281
Toronto-Dominion Holdings USA, Inc.
2.68%, due 11/17/2008 - 144A		2,000		1,998
UBS Finance, Inc.
2.80%, due 11/10/2008		1,800		1,799
3.16%, due 11/28/2008		3,900		3,891
3.65%, due 12/04/2008		2,900		2,890
4.05%, due 11/17/2008		4,800		4,791
Wells Fargo & Co.
2.59%, due 11/12/2008		2,500		2,498
Commercial Services & Supplies (1.8%)
Pitney Bowes, Inc.
2.05%, due 01/05/2009 - 144A		4,800		4,782
Computers & Peripherals (4.4%)
Hewlett-Packard Co.
2.20%, due 11/04/2008 - 11/10/2008 -144A		5,400		5,398
2.30%, due 11/03/2008 - 144A		6,600		6,599
Diversified Financial Services (55.5%)
Alpine Securitization
3.00%, due 11/13/2008 - 144A		4,750		4,745
3.25%, due 11/12/2008 - 144A		7,200		7,193
3.75%, due 12/03/2008 - 144A		1,400		1,395
American Honda Finance Corp.
2.25%, due 12/02/2008 - 12/03/2008		13,350		13,323
Bank of America Corp.
2.66%, due 11/03/2008		1,150		1,150
2.67%, due 12/09/2008		1,600		1,595
3.43%, due 12/15/2008		2,700		2,689
Caterpillar Financial Services Corp.
1.75%, due 11/10/2008 - 11/12/2008		3,000		2,998
1.80%, due 11/17/2008 - 11/20/2008		10,300		10,291
Ciesco LLC
2.75%, due 12/01/2008 - 144A		8,800		8,780
2.78%, due 11/04/2008 - 144A		500		500
3.00%, due 11/25/2008 - 144A		4,200		4,192
General Electric Capital Corp.
2.52%, due 11/20/2008		1,950		1,947
2.75%, due 11/24/2008 - 12/05/2008		8,500		8,483
MetLife Funding, Inc.
2.25%, due 12/03/2008		5,000		4,990
2.55%, due 11/21/2008		6,600		6,591
Old Line Funding LLC
2.70%, due 11/06/2008 - 144A		290		290
2.77%, due 11/07/2008 - 11/21/2008 -144A		4,450		4,447
3.50%, due 11/19/2008 - 144A		2,400		2,396
3.70%, due 11/17/2008 - 144A		1,300		1,298
4.10%, due 11/04/2008 - 144A		3,100		3,099
PACCAR Financial Corp.
2.05%, due 11/07/2008		5,800		5,798
2.15%, due 11/05/2008 - 11/10/2008		7,500		7,498
Rabobank USA Financial Corp.
2.20%, due 11/24/2008		1,600		1,598
2.68%, due 11/25/2008		5,500		5,490
3.20%, due 11/20/2008		6,300		6,289
Ranger Funding Co. LLC
2.58%, due 11/06/2008 - 144A		1,700		1,699
2.74%, due 11/19/2008 - 144A		2,200		2,197
2.75%, due 11/18/2008 - 144A		2,550		2,547
Toyota Motor Credit Corp.
2.52%, due 11/21/2008		1,550		1,548
2.85%, due 11/14/2008		5,700		5,694
3.00%, due 11/13/2008		5,700		5,694
Wal-Mart Funding Corp.
2.50%, due 11/18/2008 - 144A		13,350		13,334
Diversified Telecommunication Services (4.8%)
AT&T, Inc.
2.00%, due 12/04/2008 - 144A		8,250		8,235
2.10%, due 01/07/2009 - 144A		5,000		4,980
Food Products (2.9%)
Nestle Capital Corp.
2.17%, due 11/14/2008 - 144A		7,850		7,844
Multiline Retail (4.4%)
Walgreen Co.
1.75%, due 11/03/2008 - 144A		4,000		4,000
1.95%, due 11/06/2008 - 144A		4,100		4,099
2.00%, due 11/05/2008 - 144A		3,750		3,749
Total Commercial Paper (cost $272,268)				272,268
REPURCHASE AGREEMENT (0.7%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $1,865 on 11/03/2008 ◊ •		1,865		1,865
Total Repurchase Agreement (cost $1,865)				1,865
Total Investment Securities (cost $274,133) #			$	274,133

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

40

NOTES TO SCHEDULE OF INVESTMENTS:
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 5.89%, and a maturity date of 01/01/2037, and with a market value plus accrued interest of $1,905.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
#	Aggregate cost for federal income tax purposes is $274,133.
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 10/31/2008, these securities aggregated $109,796, or 40.38% of the Fund’s net assets.
LLC	Limited Liability Company
PLC	Public Limited Company

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

41

Transamerica Science & Technology
(unaudited)

MARKET ENVIRONMENT

Faced with many challenges in the twelve months ended October 31, 2008, US equity indices delivered double-digit negative returns across the board. The Dow Jones US Technology Index (“DJ Technology”) declined 40.90%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. This made it more difficult for companies to fund payroll, inventory and other near-term expenses in the face of high borrowing costs. Consumers, who already were feeling the effects of higher energy and food prices and lack of wage growth, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the US government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown rose.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Science & Technology Class A returned (48.18)%. By comparison, its benchmark, the DJ Technology, returned (40.90)%.

STRATEGY REVIEW

We position the portfolio to benefit from at least one of several long-term secular trends that we believe can be the source of strong growth for a company. Among these are the digitization of media for mass consumer adoption, and development and delivery of alternative energy and other environmental sustainability projects. Other trends underlying our stock selections are the unique application of technology to gain a competitive edge and the development of biotechnology products and treatments that improve the quality and efficacy of health care.

Despite our focus on these secular growth trends, the stocks in the portfolio were generally unable to withstand the broad-scale sell-off of technology stocks that occurred during the period. Driving that sell-off were hedge funds and other major holders of technology stocks that were forced to sell securities in order to raise capital.

The largest detractors from performance were technology sector holdings (e.g., SiRF Technology Holdings, Inc. (“SiRF”) and SunPower Corporation (“SunPower”)). We sold SiRF, a maker of global positioning systems (“GPS”) semiconductor chips, when it became apparent that the commoditization of GPS chips was occurring more rapidly than we anticipated. SunPower is a manufacturer and installer of solar power technologies. Its stock price fluctuated widely during the period as sales were affected by customers’ difficulty in obtaining financing and investors worried about the future of government subsidies for alternative energy. We maintained the position, in the belief that there will be aggressive pursuit of alternative energy technologies in the coming years.

These declines were partially offset by our overweighting and stock selection in the health care sector (e.g., NuVasive, Inc. (“NuVasive”) and Gilead Sciences, Inc. (“Gilead”)). NuVasive, a medical device company, is benefiting from advancements in spinal surgery techniques. Further, its business is relatively immune from cyclical economic trends. Gilead, a biopharmaceutical company working on treatments for cures to life-threatening diseases, has benefited from competitors’ mergers, which reduced its competition.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector, the biggest government intervention in the financial system since the 1930s, should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and reduce the severity of the recession. In the interim, high levels of market volatility likely will persist.

Kirk J. Kim
Joshua D. Shaskan, CFA
Jeffrey J. Hoo, CFA
Erik U. Rollé

Co-Portfolio Managers
Transamerica Investment Management, LLC

Prior to March 1, 2008, Gary V. Rollé, CFA was also a co-portfolio manager.

42

Average Annual Total Return for Periods Ended 10/31/2008

							From			Inception
	1 Year			5 Years			Inception			Date
Class A (NAV)		(48.18	)%		(3.63	)%		(13.50	)%		7/14/00
Class A (POP)		(51.03	)%		(4.72	)%		(14.08	)%		7/14/00
Dow Jones U.S. Technology(1)		(40.90	)%		(2.59	)%		(12.97	)%		7/14/00
Class B (NAV)		(48.56	)%		(4.30	)%		(14.11	)%		7/14/00
Class B (POP)		(51.04	)%		(4.48	)%		(14.11	)%		7/14/00
Class C (NAV)		(48.46	)%		(4.29	)%		2.37	%		11/11/02
Class C (POP)		(48.96	)%		(4.29	)%		2.37	%		11/11/02
Class I (NAV)		(47.93	)%		N/A			(8.79	)%		11/15/05

NOTES
(1)	The Dow Jones U.S. Technology Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot invest directly in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this Fund.

43

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	646.92		1.53	%	$	6.33
Hypothetical (b)		1,000.00		1,017.44		1.53			7.76
Class B
Actual		1,000.00		644.23		2.18			9.01
Hypothetical (b)		1,000.00		1,014.18		2.18			11.04
Class C
Actual		1,000.00		645.78		2.18			9.02
Hypothetical (b)		1,000.00		1,014.18		2.18			11.04
Class I
Actual		1,000.00		647.98		0.93			3.85
Hypothetical (b)		1,000.00		1,020.46		0.93			4.72

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At October 31, 2008
(unaudited)

This chart shows the percentage breakdown by Sector of the Fund’s total investment securities. Percentage breakdown of the Short-term category includes Securities Lending Collateral.

44

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (91.9%)
Auto Components (1.3%)
BorgWarner, Inc. ^		29,793	$	669
Biotechnology (4.7%)
Gilead Sciences, Inc. ‡		54,800		2,513
Communications Equipment (11.2%)
F5 Networks, Inc. ‡		55,500		1,378
Polycom, Inc. ‡ ^		120,000		2,521
Qualcomm, Inc.		33,000		1,263
Research In Motion, Ltd. ‡ ^		15,500		782
Computers & Peripherals (10.4%)
Apple, Inc. ‡		21,935		2,360
Data Domain, Inc. ‡ ^		53,000		978
EMC Corp. ‡ ^		124,500		1,467
Hewlett-Packard Co.		21,000		804
Diversified Financial Services (3.3%)
CME Group, Inc. -Class A ^		6,300		1,778
Diversified Telecommunication Services (2.7%)
AT&T, Inc.		54,100		1,448
Electrical Equipment (3.7%)
Fuelcell Energy, Inc. ‡ ^		170,800		816
Sunpower Corp. -Class A ‡ ^		29,500		1,152
Electronic Equipment & Instruments (6.4%)
FLIR Systems, Inc. ‡ ^		70,000		2,247
Itron, Inc. ‡ ^		24,000		1,164
Health Care Equipment & Supplies (6.4%)
Intuitive Surgical, Inc. ‡ ^		9,700		1,676
NuVasive, Inc. ‡ ^		38,000		1,789
Internet & Catalog Retail (4.2%)
Amazon.com, Inc. ‡ ^		39,000		2,232
Internet Software & Services (10.4%)
Equinix, Inc. ‡ ^		17,000		1,061
Google, Inc. -Class A ‡		8,800		3,162
Omniture, Inc. ‡ ^		67,000		770
Vocus, Inc. ‡ ^		34,538		581
Machinery (1.7%)
Tennant Co. ^		35,500		891
Software (20.8%)
Activision Blizzard, Inc. ‡		108,000		1,346
Adobe Systems, Inc. ‡ ^		71,000		1,891
Informatica Corp. ‡ ^		117,000		1,644
Macrovision Solutions Corp. ‡ ^		129,500		1,435
Nintendo Co., Ltd. ADR		30,200		1,178
Nuance Communications, Inc. ‡ ^		140,000		1,281
Salesforce.com, Inc. ‡ ^		52,500		1,625
Ultimate Software Group, Inc. ‡ ^		56,500		753
Wireless Telecommunication Services (4.7%)
Metropcs Communications, Inc. ‡ ^		129,300		1,777
NII Holdings, Inc. ‡ ^		29,600		762
Total Common Stocks (cost $64,224)				49,194
	Principal
REPURCHASE AGREEMENT (8.1%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $4,323 on 11/03/2008 ◊ •	$	4,323		4,323
Total Repurchase Agreement (cost $4,323)				4,323
	Shares
SECURITIES LENDING COLLATERAL (24.7%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.71% ◊ ▲		13,233,517		13,234
Total Securities Lending Collateral (cost $13,234)				13,234
Total Investment Securities (cost $81,781) #			$	66,751

NOTES TO SCHEDULE OF INVESTMENTS:
^	All or a portion of this security is on loan. The value of all securities on loan is $12,875.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 5.00%, and a maturity date of 02/01/2019, and with a market value plus accrued interest of $4,409.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 10/31/2008.
#	Aggregate cost for federal income tax purposes is $81,838. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $3,186 and $18,273, respectively. Net unrealized depreciation for tax purposes is $15,087.
DEFINITION:
ADR	American Depositary Receipt

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

45

Transamerica Short-Term Bond
(unaudited)

MARKET ENVIRONMENT

In the twelve months ended October 31, 2008, conditions in the economy and credit markets deteriorated, creating a very unstable environment for bond investors. What began as concerns about securities related to defaulting sub-prime mortgages escalated into a credit and economic crises. Overnight lending between banks, a vital part of maintaining the flow of capital in the financial system, was disrupted as banks increasingly worried about undisclosed risks from exotic securities and the financial strength and stability of other banks. As credit problems multiplied, financial institutions focused on preserving capital and were more selective about lending, making it more difficult for business and consumers to attain credit.

The risk aversion eventually spread from Wall Street to Main Street, where it added to growing problems on the economic front. Throughout the period, the housing market continued to deteriorate, while commodity prices were volatile. Rising unemployment, coupled with lack of wage growth and tighter credit conditions, caused consumers to rein in their spending. The reduction in consumer spending, which is the backbone of the US economy, exacerbated problems further.

The Federal Reserve Board (“Fed”) and the US government intervened on several occasions, taking unprecedented measures to curb the crises, improve liquidity, and stimulate the economy. Among the many initiatives were new government-guaranteed loans, larger and more varied lending facilities for banks, and the takeover of major financial institutions. Even with the government’s intervention, the expectations of a global economic slowdown and US recession rose. Nearing the end of the period, investors flocked to the relative safety of US government debt. While treasury yields declined, concerns over corporate profitability in a slowing economy coupled with reduced liquidity caused the risk premiums to increase for most non-government securities. As this risk premium increased, prices for most non-government securities rose less than Treasuries and in some cases prices fell.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Short-Term Bond Class A returned (1.70)%. By comparison, its benchmark, the Merrill Lynch US Corporate & Government 1-3 Year Index (“MLCG”), returned 3.97%.

STRATEGY REVIEW

Throughout the period, the portfolio generated competitive yields, aided by an overweighting in corporate bonds, an area where yields generally rose. However, as the market tumult came to a head and yield spreads between government and corporate bonds grew, this overweighting hindered performance even though we reduced our exposure to corporates throughout the period. The below-index duration of the portfolio made it less sensitive than the index to changes in interest rates. Therefore, it did not benefit as much as the index when bonds yields fell and bond prices, which move opposite to yields, rose. Helping to mitigate the underperformance were two factors. We were selective in our corporate bond positions, and had no exposure to sub-prime securities. Additionally, as corporate issues matured later in the period, we invested the proceeds into government agency mortgage-backed securities (“MBS”).

Agency MBS were less volatile than other fixed-income securities because the government, in taking over the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), had strengthened its implied guarantee of these securities.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector, combined with several other government actions, should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and reduce the severity of the recession. In the interim, high levels of market volatility likely will persist.

Greg D. Haendel, CFA
Derek S. Brown, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

Prior to October 1, 2008, Heidi Y. Hu, CFA was also a co-portfolio manager.

46

Average Annual Total Return for Periods Ended 10/31/2008

				From			Inception
	1 Year			Inception			Date
Class I (NAV)		(1.22	)%		2.09	%		11/8/04
Merrill Lynch U.S. Corporate & Government, 1-3 Yrs(1)		3.97	%		3.97	%		11/1/07
Class A (NAV)		(1.70	)%		(1.70	)%		11/1/07
Class A (POP)		(4.19	)%		(4.19	)%		11/1/07
Class C (NAV)		(2.43	)%		(2.43	)%		11/1/07
Class C (POP)		(3.37	)%		(3.37	)%		11/1/07

NOTES
(1)	The Merrill Lynch U.S. Corporate & Government, 1-3 Yrs Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot invest directly in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 2.5% for A shares or 1% (during the first 12 months) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this Fund.

47

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	972.84		1.13	%	$	5.60
Hypothetical (b)		1,000.00		1,019.46		1.13			5.74
Class C
Actual		1,000.00		968.80		1.78			8.81
Hypothetical (b)		1,000.00		1,016.19		1.78			9.02
Class I
Actual		1,000.00		974.04		0.70			3.47
Hypothetical (b)		1,000.00		1,021.62		0.70			3.56

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

48

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Bond Credit Quality (Moody’s ratings)
At October 31, 2008
(unaudited)

Credit Rating Definitions:

Aaa	Obligations rated Aaa are judged to be of the highest quality, with minimal credit risk.
Aa	Obligations rated Aa are judged to be of high quality, and are subject to very low credit risk, but their susceptibility to long-term risks appears somewhat greater.
A	Obligations rated A are considered upper-medium grade and are subject to low credit risk, but have elements present that suggest a susceptibility to impairment over the long term.
Baa	Obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics.
Ba	Obligations rated Ba are judged to have speculative elements and are subject to substantial credit risk.
B	Obligations rated B are considered speculative, are subject to high credit risk, and have generally poor credit risk.
Caa	Obligations rated Caa are judged to be of poor standing, are subject to very high credit risk, and have extremely poor credit quality.
Ca	Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.
C	Obligations rated C are the lowest rated class of bonds and are typically in default, with little prospect for recovery of principal or interest.
NR	Not rated.
WR	Withdrawn rating.

Note: Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. Percentage breakdown of the NR category includes Securities Lending Collateral.

49

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Principal		Value
U.S. GOVERNMENT AGENCY OBLIGATIONS (28.7%)
Fannie Mae
4.50%, due 03/25/2017 - 04/25/2030	$	22,933	$	22,760
5.00%, due 10/25/2032 - 06/25/2034		19,556		19,297
5.50%, due 03/25/2026		8,945		8,979
5.92%, due 07/01/2037 *		6,391		6,479
Freddie Mac
3.75%, due 12/15/2011		5,728		5,705
4.00%, due 10/15/2029		5,382		5,262
4.50%, due 02/15/2027		5,825		5,851
4.82%, due 06/01/2035 *		9,427		9,388
5.00%, due 06/15/2027 - 11/15/2032		22,985		22,854
5.50%, due 04/15/2024 - 01/15/2029		13,767		13,948
5.51%, due 08/01/2037 *		4,211		4,253
5.55%, due 02/01/2038 *		6,586		6,628
5.71%, due 03/01/2037 *		7,218		7,314
Ginnie Mae
4.50%, due 01/17/2033		6,343		6,329
Total U.S. Government Agency Obligations (cost $144,640)				145,047
MORTGAGE-BACKED SECURITIES (3.6%)
Crown Castle Towers LLC
Series 2006-1A, Class C
5.47%, due 11/15/2036 -144A		5,000		4,538
Global Signal Trust
Series 2004-2A, Class D
5.09%, due 12/15/2014 -144A		9,750		9,309
SBA CMBS Trust
Series 2006-1A, Class E
6.17%, due 11/15/2036 -144A		5,000		4,201
Total Mortgage-Backed Securities (cost $19,611)				18,048
ASSET-BACKED SECURITIES (1.8%)
USAA Auto Owner Trust
Series 2007-2, Class A3
4.90%, due 02/15/2012		4,000		3,939
Series 2008-2, Class A2
3.91%, due 01/15/2011		5,000		4,962
Total Asset-Backed Securities (cost $8,999)				8,901
CORPORATE DEBT SECURITIES (63.4%)
Aerospace & Defense (1.0%)
BAE Systems PLC
6.40%, due 12/15/2011 -144A		5,000		5,154
Air Freight & Logistics (1.2%)
FedEx Corp.
3.50%, due 04/01/2009 ^		6,000		5,903
Airlines (0.6%)
Continental Airlines, Inc.
7.49%, due 10/02/2010		3,061		2,847
Automobiles (1.0%)
Daimler Finance North America LLC
7.20%, due 09/01/2009		5,200		4,827
Beverages (3.8%)
Coca-Cola Enterprises, Inc.
3.31%, due 05/06/2011 *		6,000		5,793
Diageo Capital PLC
4.38%, due 05/03/2010 ^		4,870		4,820
Molson Coors Capital Finance
4.85%, due 09/22/2010		6,000		6,010
Sabmiller PLC
6.20%, due 07/01/2011 -144A		2,301		2,337
Capital Markets (2.5%)
Merrill Lynch & Co., Inc.
4.61%, due 05/20/2009 *		5,000		4,993
State Street Capital Trust III
8.25%, due 03/15/2011 Ž ◊		3,000		2,584
Xstrata Finance Dubai, Ltd.
3.15%, due 11/13/2009 -144A *		5,000		4,910
Chemicals (2.2%)
ICI Wilmington, Inc.
4.38%, due 12/01/2008		5,002		5,001
Lubrizol Corp.
4.63%, due 10/01/2009		6,566		6,325
Commercial Banks (1.5%)
BNP Paribas
3.26%, due 06/04/2010 *		3,700		3,702
M&I Marshall & Ilsley Bank
3.08%, due 12/04/2012 *		5,390		4,208
Commercial Services & Supplies (0.5%)
Waste Management, Inc.
6.88%, due 05/15/2009 ^		2,355		2,371
Computers & Peripherals (1.0%)
Hewlett-Packard Co.
2.88%, due 06/15/2010 ^ *		5,199		5,062
Consumer Finance (2.3%)
American Express Credit Corp.
3.38%, due 02/24/2012 ^ *		4,300		3,094
Discover Financial Services
3.35%, due 06/11/2010 *		6,920		4,915
John Deere Capital Corp.
3.57%, due 06/10/2011 *		4,000		3,768
Containers & Packaging (0.6%)
Rexam PLC
6.75%, due 06/01/2013 -144A		2,950		2,891
Diversified Financial Services (1.1%)
Caterpillar Financial Services Corp.
5.05%, due 12/01/2010		3,000		2,932
Pemex Finance, Ltd.
9.03%, due 02/15/2011		2,700		2,720
Diversified Telecommunication Services (3.6%)
Telecom Italia Capital SA
4.00%, due 11/15/2008		8,010		8,000
Telefonica Europe BV
7.75%, due 09/15/2010		5,400		5,228
Verizon Global Funding Corp.
7.25%, due 12/01/2010		5,000		4,985
Electric Utilities (2.1%)
PSEG Power LLC
3.75%, due 04/01/2009		4,900		4,818
Sempra Energy
7.95%, due 03/01/2010		5,500		5,530
Food & Staples Retailing (1.5%)
Kroger Co.
8.05%, due 02/01/2010		5,012		5,036
Stater Brothers Holdings, Inc.
8.13%, due 06/15/2012		2,900		2,581
Food Products (3.5%)
Cargill, Inc.
3.63%, due 03/04/2009 -144A		5,000		4,928
ConAgra Foods, Inc.
7.88%, due 09/15/2010		4,880		4,856
General Mills, Inc.
4.19%, due 01/22/2010 *		5,200		5,143

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

50

	Principal		Value
Food Products (continued)
Michael Foods, Inc.
8.00%, due 11/15/2013	$	3,215	$	2,781
Hotels, Restaurants & Leisure (0.5%)
Royal Caribbean Cruises, Ltd.
8.75%, due 02/02/2011 ^		3,000		2,580
Independent Power Producers & Energy Traders (1.9%)
Empresa Nacional de Electricidad SA
8.50%, due 04/01/2009		9,610		9,694
Industrial Conglomerates (1.2%)
Atmos Energy Corp.
4.00%, due 10/15/2009		1,840		1,735
Hutchison Whampoa International, Ltd.
5.45%, due 11/24/2010 -144A		5,000		4,718
Insurance (0.3%)
Oil Insurance, Ltd.
7.56%, due 06/30/2011 -144A ■ Ž		3,250		1,644
IT Services (1.1%)
Western Union Co.
5.40%, due 11/17/2011 ^		5,500		5,349
Machinery (0.5%)
Case New Holland, Inc.
6.00%, due 06/01/2009 ^		2,500		2,388
Media (3.8%)
British Sky Broadcasting Group PLC
8.20%, due 07/15/2009		6,000		5,947
Comcast Cable Communications LLC
6.88%, due 06/15/2009		5,500		5,455
Time Warner, Inc.
2.52%, due 11/13/2009 *		4,906		4,612
Walt Disney Co.
4.71%, due 07/16/2010 *		3,080		2,980
Metals & Mining (1.8%)
Arcelormittal
5.38%, due 06/01/2013 -144A		3,500		2,844
BHP Billiton Finance, Ltd.
5.00%, due 12/15/2010		6,000		5,959
Multiline Retail (0.3%)
Target Corp.
2.63%, due 08/07/2009 *		1,450		1,449
Office Electronics (0.8%)
Xerox Corp.
9.75%, due 01/15/2009 *		4,000		3,985
Oil, Gas & Consumable Fuels (7.0%)
Anadarko Petroleum Corp.
3.22%, due 09/15/2009 *		5,700		5,384
Burlington Resources Finance Co.
6.50%, due 12/01/2011		6,175		6,177
Enterprise Products Operating, LP
7.50%, due 02/01/2011 ^		6,100		6,030
Kinder Morgan Energy Partners, LP
6.30%, due 02/01/2009		3,200		3,188
Ras Laffan Liquefied Natural Gas Co., Ltd.
3.44%, due 09/15/2009 -144A		4,039		3,988
Transcanada Pipelines, Ltd.
6.49%, due 01/21/2009		5,000		5,016
XTO Energy, Inc.
5.00%, due 08/01/2010 ^		5,770		5,674
Real Estate Investment Trusts (7.6%)
BRE Properties, Inc.
5.75%, due 09/01/2009		10,000		9,762
Developers Divers Realty
4.63%, due 08/01/2010		1,043		918
Federal Realty Investment Trust
8.75%, due 12/01/2009		2,680		2,706
Healthcare Realty Trust, Inc.
8.13%, due 05/01/2011		3,000		3,083
Kimco Realty Corp.
4.62%, due 05/06/2010		5,000		4,789
PPF Funding, Inc.
5.35%, due 04/15/2012 -144A		4,000		3,772
ProLogis
5.25%, due 11/15/2010 ^		7,020		4,579
Simon Property Group, LP
3.75%, due 01/30/2009		5,335		5,270
Wea Finance LLC / WCI Finance LLC
5.40%, due 10/01/2012 -144A		5,000		4,358
Real Estate Management & Development (1.4%)
Colonial Realty, LP
4.75%, due 02/01/2010		2,380		2,242
Post Apartment Homes, LP
7.70%, due 12/20/2010 ^		5,000		5,220
Road & Rail (4.2%)
Burlington Northern Santa Fe Corp.
6.13%, due 03/15/2009		5,000		4,995
Erac USA Finance Co.
7.95%, due 12/15/2009 -144A		5,500		5,221
Norfolk Southern Corp.
6.20%, due 04/15/2009		6,000		5,979
Union Pacific Corp.
3.63%, due 06/01/2010		5,030		4,935
Wireless Telecommunication Services (1.0%)
Vodafone Group PLC
7.75%, due 02/15/2010 ^		5,000		4,861
Total Corporate Debt Securities (cost $339,994)				320,539
	Principal
REPURCHASE AGREEMENT (1.3%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $6,737 on 11/03/2008 ◊ •		6,736		6,736
Total Repurchase Agreement (cost $6,736)				6,736
	Shares
SECURITIES LENDING COLLATERAL (3.4%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.71% ◊ ▲		17,209,058		17,209
Total Securities Lending Collateral (cost $17,209)				17,209
Total Investment Securities (cost $537,189) #			$	516,480

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

51

FUTURES CONTRACTS:

									Net Unrealized
				Expiration					Appreciation
Description	Contracts Г			Date		Amount			(Depreciation)
5-Year U.S. Note		(120	)		12/31/2008	$	(13,591	)	$	(160	)
						$	(13,591	)	$	(160	)

NOTES TO SCHEDULE OF INVESTMENTS:
*	Floating or variable rate note. Rate is listed as of 10/31/2008.
^	All or a portion of this security is on loan. The value of all securities on loan is $16,847.
Ž	The security has a perpetual maturity. The date shown is the next call date.
Г	Contract amounts are not in thousands.
■	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 10/31/2008.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 5.00% to 5.89%, maturity dates ranging between 12/01/2019 — 01/01/2037, and with market values plus accrued interests of $6,871.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 10/31/2008.
#	Aggregate cost for federal income tax purposes is $537,272. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $1,089 and $21,881, respectively. Net unrealized depreciation for tax purposes is $20,792.
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 10/31/2008, these securities aggregated $64,813, or 12.83% of the Fund’s net assets.
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

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

52

Transamerica Small/Mid Cap Value
(unaudited)

MARKET ENVIRONMENT

Faced with many challenges in the twelve months ended October 31, 2008, US equity indices delivered double-digit negative returns across the board. The Russell 2500® Value Index (“Russell 2500 Value”) declined 33.64%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. This made it more difficult for companies to fund payroll, inventory and other near-term expenses in the face of high borrowing costs. Consumers, already feeling the effects of higher energy and food prices, rising unemployment and lack of wage growth, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the US government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown rose.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Small/Mid Cap Value Class A returned (39.47)%. By comparison, its benchmark, the Russell 2500® Value, returned (33.64)%.

STRATEGY REVIEW

The results reflect the impact of decisions made by the portfolio’s prior management team (through September 30, 2008) and decisions of a new management team thereafter.The portfolio’s underperformance can be attributed almost exclusively to overweighting energy and shipping-related stocks. As the financial crisis and economic turmoil increasingly spread across the globe, investors shunned the stocks over concerns that the global supply-demand ratios driving their growth will deteriorate temporarily, due to recession. The largest individual detractors from relative performance (versus the benchmark) included Aegean Marine Petroleum Network Inc., DryShips Inc., Genco Shipping & Trading Limited and McDermott International, Inc., an oil services company.

Management of the portfolio was transferred to a new team at Transamerica Investment Management, LLC as of October 1, 2008. The new team began repositioning the portfolio to be more diversified by sector and industry while keeping it relatively concentrated in 35 — 45 names. In selecting stocks to replace the energy, shipping and other stocks vulnerable to the slowing global economy, we focused on companies that derive more of their revenues from US sources. We believe that since the US was first to take action to stave off recession, it also will emerge from the economic downturn before others do.

While the new investment team believes that, in the long run, global economic growth will be strong, it also recognized that, in the near term, the financial crisis will greatly limit economic expansion. With that in mind, we (the new team) began partially and gradually repositioning the portfolio to be more diversified by sector and industry while maintaining a relatively concentrated portfolio.

Partially offsetting these declines were our selections in the producer durables and consumer discretionary (e.g., FTI Consulting, Inc. (“FTI Consulting”)) sectors and our cash position. FTI Consulting, a provider of advice on corporate governance, compliance and other strategic management issues, saw strong worldwide sales and benefited from distressed companies seeking its services in troubled times. Although our goal is to be fully invested at all times as market conditions worsened, we let our cash position build temporarily during October. Because cash outperformed stocks, this added to performance. It also made it possible to invest in new opportunities at very attractive prices as the market fell during that month.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector should provide some much-needed rationality in the markets. We believe it should help to rebuild trust among financial institutions and reduce the severity of the recession. In the interim, high levels of market volatility likely will persist.

Joshua D. Shaskan, CFA
Scott L. Dinsdale, CFA
Jeffrey J. Hoo, CFA
John D. Lawrence, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

Prior to October 1, 2008, Michelle E. Stevens was the portfolio manager of the fund.

53

Average Annual Total Return for Periods Ended 10/31/2008

							From			Inception
	1 Year			5 Years			Inception			Date
Class A (NAV)		(39.47)	%		6.54	%		7.87	%		4/2/01
Class A (POP)		(42.79)	%		5.34	%		7.07	%		4/2/01
Russell 2500 Value (1)		(33.64)	%		2.55	%		5.80	%		4/2/01
Class B (NAV)		(39.85)	%		5.79	%		7.14	%		4/2/01
Class B (POP)		(42.51)	%		5.64	%		7.14	%		4/2/01
Class C (NAV)		(39.84)	%		5.78	%		11.06	%		11/11/02
Class C (POP)		(40.37)	%		5.78	%		11.06	%		11/11/02
Class I (NAV)		(39.11)	%		N/A			(1.70	)%		11/15/05

NOTES
(1)	The Russell 2500 Value Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

Investing in small cap stocks generally involves greater risk and volatility, therefore an investment in the fund may not be appropriate for everyone. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this Fund.

54

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	661.11		1.43	%	$	5.97
Hypothetical (b)		1,000.00		1,017.95		1.43			7.25
Class B
Actual		1,000.00		659.27		2.09			8.72
Hypothetical (b)		1,000.00		1,014.63		2.09			10.58
Class C
Actual		1,000.00		659.40		2.06			8.59
Hypothetical (b)		1,000.00		1,014.78		2.06			10.43
Class I
Actual		1,000.00		663.39		0.85			3.55
Hypothetical (b)		1,000.00		1,020.86		0.85			4.32

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At October 31, 2008
(unaudited)

This chart shows the percentage breakdown by Sector of the Fund’s total investment securities. Percentage breakdown of the Short-term category includes Securities Lending Collateral.

55

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (86.1%)
Aerospace & Defense (0.5%)
Alliant Techsystems, Inc. ‡		30,830	$	2,545
Auto Components (1.8%)
Tenneco, Inc. ‡ ^		2,024,220		9,939
Chemicals (3.6%)
Terra Industries, Inc. ^		601,001		13,216
Zep, Inc.		299,805		6,311
Commercial Banks (1.2%)
Wintrust Financial Corp. ^		246,115		6,301
Commercial Services & Supplies (2.7%)
Republic Services, Inc. -Class A ^		624,090		14,791
Communications Equipment (4.4%)
Arris Group, Inc. ‡ ^		1,982,000		13,696
Harmonic Lightwaves, Inc. ‡ ^		1,472,832		10,472
Computers & Peripherals (0.2%)
Hypercom Corp. ‡ ^		434,321		847
Electric Utilities (3.4%)
Uil Holdings Corp. ^		550,000		18,150
Electronic Equipment & Instruments (1.1%)
Cogent, Inc. ‡ ^		655,735		5,993
Energy Equipment & Services (3.7%)
Superior Energy Services, Inc. ‡ ^		935,000		19,934
Food Products (3.9%)
Dean Foods Co. ‡ ^		977,630		21,371
Health Care Technology (1.1%)
Allscripts-Misys Healthcare Solutions, Inc. ^		902,639		5,867
Hotels, Restaurants & Leisure (2.5%)
PF Chang’s China Bistro, Inc. ‡ ^		663,000		13,565
Household Durables (1.9%)
Jarden Corp. ‡ ^		575,100		10,237
Insurance (7.1%)
HCC Insurance Holdings, Inc. ^		872,500		19,247
PartnerRe, Ltd. ^		280,000		18,953
Internet Software & Services (2.4%)
Valueclick, Inc. ‡ ^		1,768,308		13,085
IT Services (1.7%)
NeuStar, Inc. -Class A ‡		44,986		886
Wright Express Corp. ‡ ^		605,000		8,282
Life Sciences Tools & Services (2.5%)
Varian, Inc. ‡ ^		365,000		13,450
Marine (0.2%)
Omega Navigation Enterprises, Inc. -Class A^		225,342		1,257
Oil, Gas & Consumable Fuels (7.1%)
Comstock Resources, Inc. ‡ ^		301,085		14,880
PetroHawk Energy Corp. ‡ ^		965,700		18,300
StealthGas, Inc. ^		682,685		4,711
Personal Products (1.1%)
Bare Escentuals, Inc. ‡ ^		1,483,185		6,200
Pharmaceuticals (1.6%)
Sepracor, Inc. ‡ ^		646,225		8,608
Professional Services (5.9%)
FTI Consulting, Inc. ‡ ^		550,000		32,037
Real Estate Investment Trusts (18.5%)
Annaly Capital Management, Inc. ^		1,880,000		26,132
Capstead Mortgage Corp. ^		1,098,500		11,040
Host Hotels & Resorts, Inc. ^		1,243,820		12,861
LTC Properties, Inc. ^		800,480		19,348
Omega Healthcare Investors, Inc. ^		1,169,860		17,630
Potlatch Corp. ^		395,335		13,129
Software (3.4%)
Fair Isaac Corp. ^		465,000		7,249
Macrovision Solutions Corp. ‡ ^		1,030,000		11,412
Textiles, Apparel & Luxury Goods (2.6%)
Hanesbrands, Inc. ‡ ^		809,960		14,150
Total Common Stocks (cost $533,709)				466,082
	Principal
REPURCHASE AGREEMENT (11.7%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $63,351 on 11/03/2008 ◊ •	$	63,351		63,351
Total Repurchase Agreement (cost $63,351)				63,351
	Shares
SECURITIES LENDING COLLATERAL (24.4%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.71% ◊▲		131,869,568		131,870
Total Securities Lending Collateral (cost $131,870)				131,870
Total Investment Securities (cost $728,930) #			$	661,303

NOTES TO SCHEDULE OF INVESTMENTS:
‡	Non-income producing security.
^	All or a portion of this security is on loan. The value of all securities on loan is $127,833.
•	Repurchase agreement is collateralized by a U.S. Government Obligation with an interest rate of 0.00%, and a maturity date of 01/15/2009, and with a market value plus accrued interest of $64,618.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 10/31/2008.
#	Aggregate cost for federal income tax purposes is $728,939. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $37,498 and $105,134, respectively. Net unrealized depreciation for tax purposes is $67,636.

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

56

Transamerica Templeton Global
(unaudited)

MARKET ENVIRONMENT

Transamerica Investment Management, LLC:

Faced with many challenges in the twelve months ended October 31, 2008, US equity indices delivered double-digit negative returns across the board. The Russell 1000® Growth Index declined 36.95%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. This made it more difficult for companies to fund payroll, inventory and other near-term expenses in the face of high borrowing costs. Consumers, who already were feeling the effects of high energy prices, increasing food costs, rising unemployment and lack of wage growth, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the US government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown rose.

Templeton Investment Counsel, LLC:

During the twelve months ended October 31, 2008, US gross domestic product (“GDP”) growth slowed markedly as housing prices declined, consumer demand softened, and a credit crisis originally related to US sub-prime loan losses intensified and spread globally. Recessionary fears spanned the entire period, and by summer most economists agreed a recession was under way, and a global slowdown surfaced.

Strong global demand triggered a commodity price boom, which added to global inflationary pressures. Seeking to reignite the US economy, the Fed lowered rates to 1.00% from 4.50%. The eurozone focused on controlling inflation and kept rates steady at 4.00% until July when the European Central Bank (“ECB”) joined many of the world’s central banks and raised rates. The potential for global recession, however, exacerbated by the virtual freeze in the global financial system in September and October, trumped inflationary concerns, and the world’s monetary authorities cut interest rates aggressively. The US dollar, which had previously declined versus many of the world’s currencies, regained ground quickly toward period-end, and the dollar posted twelve-month gains relative to most currencies.

Against this challenging economic backdrop, many global equity markets were volatile, and virtually all local indices suffered losses for the twelve-month period. Despite negative economic data and an outlook for decelerating corporate earnings and profit margins globally, many companies’ balance sheets, primarily outside the financial sector, remained relatively strong.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Templeton Global Class A returned (44.68)%. By comparison, its benchmark, the Morgan Stanley Capital International World Index (“MSCIW”), returned (41.51)%.

STRATEGY REVIEW

Transamerica Investment Management LLC:

The portfolio lagged the index due primarily to poor results for our holdings within the automotive/transportation (e.g., Daimler AG (“Daimler”)), technology (e.g., Research In Motion Limited (“RIMM”)), and consumer discretionary (e.g., MGM Mirage (“MGM”)) sectors. Daimler suffered during the year as a result of the downward trend in automotive sales worldwide, a trend that was heightened by consumers’ difficulty in obtaining financing. We believe RIMM’s performance can be attributed to the concerns of slowing consumer spending rather than to any deterioration in company fundamentals. We sold our position in MGM in early 2008, based on our belief that discretionary spending on travel and entertainment would slow.

Partially offsetting these declines were our selections in materials/processing (e.g., Praxair, Inc. (“Praxair”)) and healthcare (e.g., Gilead Sciences, Inc. (“Gilead”)) and our cash position. Praxair, a producer and distributor of industrial gases, held up relatively well because its stable business model emphasizes long-term contracts. We believe this will help the company maintain its already strong market share. Gilead, a biopharmaceutical company working on treatments for cures to life-threatening diseases, has benefited from competitors’ mergers, which reduced its competition. Our goal is to be fully invested at all times, and cash has historically averaged less than 5% of portfolio assets. However, as market conditions worsened, we let our cash position build slightly so that we could redeploy the assets in attractive new opportunities as they arose.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector, the biggest government intervention in the financial system since the 1930s, should provide some much-needed rationality in the markets.

We believe it should help to rebuild trust among financial institutions and serve to shorten or at least reduce the severity of the recession. In the interim, high levels of market volatility likely will persist.

Templeton Investment Counsel, LLC:

Overall, investments in every country represented in the portfolio, with the exception of Mexico (not an index component), fell in value during the year under review, as did every country represented in the index. Geographically, the portfolio’s Asian and Latin American equities hindered performance in absolute terms and relative to the benchmark for the reporting period. Stock selection in Japan hurt relative performance, as did the portfolio’s holdings in Brazil (not an index component). In Europe, overweightings and stock selection in Norway and the Netherlands, and our underweighting and stock selection in Switzerland, also hindered relative performance.

During this difficult year for equities, every sector experienced declines in value. Utilities were a major detractor from performance relative to the benchmark, due to our underweighting and stock selection. Among utilities, E.ON AG (Germany) and Korea Electric Power Corporation (South Korea) posted steep share price declines.

57

The financials sector suffered heavy losses and hurt portfolio performance on an absolute basis. Key underperformers included Japanese lender Aiful Corporation, Netherlands-based ING Groep N.V., and French insurer AXA. Underweighting in consumer staples and stock selection in the consumer discretionary sector weighed on absolute and relative performance, particularly, automotive manufacturer Bayerische Motoren Werke AG (“BMW”) (Germany) and food and staples retailer The Jean Coutu Group (PJC) Inc. (Canada).

Geographically, our North American equities benefited the portfolio’s performance in relative terms, largely due to stock selection. Our overweighted allocation to the Middle East and Africa (composed solely of investments in non-index South Africa and Israel) also helped relative results. By country, stock selection in France and the United Kingdom (“UK”) contributed to relative performance, aided by an underweighted position in Australia. Stock selection and an underweighting in Ireland also aided relative results.

In regard to sectors, industries and individual securities, the portfolio showed strength relative to the benchmark in several areas. Although financials stocks hurt the portfolio in absolute terms, our underweighting versus the benchmark was beneficial in relative terms. Based on stock selection, ACE Limited, Munich RE AG, HSBC Holdings plc and Promise Co., Ltd. performed well on a relative basis. The materials sector was another major positive contributor to performance relative to the benchmark, due to our underweighted allocation and stock selection. Our underweighted position in metals and mining companies aided relative results, as most share prices fell precipitously in the latter half of the fiscal year when related commodity prices plummeted. Driven by stock selection, the energy sector also helped relative performance for the period. Top contributors included UK-based oil and gas conglomerate BP plc. and Italy’s Eni SpA.

Our overweighted position in the health care sector also lifted the portfolio’s relative returns, aided by holdings in pharmaceutical manufacturers such as Swiss firm Novartis AG (not an index component), French company Sanofi-Aventis and UK giant GlaxoSmithKline plc, which each declined less than the overall index.

The US dollar appreciated versus most foreign currencies for the period, which negatively affected the portfolio’s performance because investments in securities with non-US currency exposure lost value as the dollar strengthened.

Gary U. Rollé, CFA

Portfolio Manager
Transamerica Investment Management, LLC

Tina Sadler, CFA
Antonio T. Docal, CFA
Gary Motyl, CFA

Co-Portfolio Managers
Templeton Investment Counsel, LLC

58

Average Annual Total Return for Periods Ended 10/31/2008

										From			Inception
	1 Year			5 Years			10 Years			Inception			Date
Class A (NAV)		(44.68	)%		(1.12	)%		(0.79	)%		6.84	%		10/1/92
Class A (POP)		(47.73	)%		(2.23	)%		(1.35	)%		6.47	%		10/1/92
MSCI World (USD)(1)		(41.51	)%		2.24	%		1.21	%		6.23	%		10/1/92
Class B (NAV)		(44.99	)%		(1.76	)%		(1.32	)%		3.22	%		10/1/95
Class B (POP)		(47.73	)%		(1.95	)%		(1.32	)%		3.22	%		10/1/95
Class C (NAV)		(45.05	)%		(1.80	)%		N/A			0.46	%		11/11/02
Class C (POP)		(45.59	)%		(1.80	)%		N/A			0.46	%		11/11/02

NOTES
(1)	The MSCI World (USD) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

International investing involves special risks including currency fluctuations, political instability, and different financial accounting standards. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this Fund.

59

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	618.66		1.55	%	$	6.31
Hypothetical (b)		1,000.00		1,017.34		1.55			7.86
Class B
Actual		1,000.00		617.38		2.20			8.94
Hypothetical (b)		1,000.00		1,014.08		2.20			11.14
Class C
Actual		1,000.00		616.81		2.20			8.94
Hypothetical (b)		1,000.00		1,014.08		2.20			11.14

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At October 31, 2008
(unaudited)

This chart shows the percentage breakdown by Region of the Fund’s total investment securities. Percentage breakdown of the Short-term category includes Securities Lending Collateral.

60

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (94.7%)
Australia (0.7%)
Alumina, Ltd.		96,049	$	137
National Australia Bank, Ltd. ^		34,025		552
Austria (0.5%)
Telekom Austria AG		41,880		515
Brazil (1.2%)
Cia Vale do Rio Doce -Class B ADR ^		15,230		200
Empresa Brasileira de Aeronautica SA ADR ^		25,360		531
Petroleo Brasileiro SA ADR		18,000		484
Canada (0.5%)
Research In Motion, Ltd. ‡		9,000		454
Denmark (0.3%)
Vestas Wind Systems ‡		6,730		276
Finland (0.6%)
Stora Enso OYJ -Class R		35,580		331
UPM-Kymmene OYJ		21,310		301
France (6.9%)
Accor SA ^		7,040		274
AXA SA		36,800		703
France Telecom SA		57,970		1,462
Gdf Suez		14,448		643
Michelin -Class B		10,407		536
Sanofi-Aventis SA		20,199		1,280
Suez SA		14		1
Total SA		21,742		1,196
Vivendi		26,410		690
Germany (6.0%)
Bayerische Motoren Werke AG		21,040		534
Celesio AG		19,660		578
Daimler AG		26,000		897
Deutsche Post AG		42,130		462
E.ON AG ADR		24,540		933
Infineon Technologies AG ‡ ^		115,570		358
Merck KGAA		6,870		607
Muenchener Rueckversicherungs AG		4,810		624
SAP AG		9,550		334
Siemens AG		11,760		692
Hong Kong (0.8%)
Cheung Kong Holdings, Ltd.		47,000		451
Hutchison Whampoa, Ltd.		59,000		319
Ireland (0.3%)
CRH PLC		14,310		315
Israel (0.7%)
Check Point Software Technologies ‡ ^		33,970		687
Italy (1.7%)
Autogrill SpA ^		32,781		262
ENI SpA ADR		19,755		949
UniCredit SpA		173,709		425
Japan (4.6%)
Fujifilm Holdings Corp.		16,700		384
Konica Minolta Holdings, Inc.		54,500		358
Mabuchi Motor Co., Ltd. ^		12,400		490
Mitsubishi UFJ Financial Group, Inc. ADR ^		32,270		202
Nintendo Co., Ltd.		2,200		707
Olympus Corp. ^		17,800		343
Promise Co., Ltd. ^		26,150		469
Sony Corp. ADR		10,560		245
Takeda Pharmaceutical Co., Ltd.		8,300		412
Toyota Motor Corp.		13,100		512
USS Co., Ltd.		8,270		507
Korea, Republic of (1.4%)
KB Financial Group, Inc. ADR ‡ ^		8,150		201
Korea Electric Power Corp. ADR ^		21,480		213
Samsung Electronics Co., Ltd. -144A GDR		4,830		994
Netherlands (1.6%)
ING Groep NV		32,710		307
ING Groep NV ADR ^		9,330		87
Koninklijke Philips Electronics NV ^		33,360		616
Randstad Holding NV ^		12,460		242
Reed Elsevier NV		26,984		361
Netherlands Antilles (0.9%)
Schlumberger, Ltd. ^		16,400		847
Norway (0.6%)
Aker Kvaerner ASA		17,210		94
Telenor ASA		88,850		530
Singapore (1.7%)
DBS Group Holdings, Ltd.		85,600		653
DBS Group Holdings, Ltd. ADR ^		4,010		121
Flextronics International, Ltd. ‡ ^		61,830		258
Singapore Telecommunications, Ltd.		378,000		636
South Africa (0.5%)
Sasol, Ltd. ADR ^		16,850		487
Spain (1.8%)
Banco Santander SA ^		25,719		278
Telefonica SA ^		78,161		1,447
Sweden (0.9%)
Nordea Bank AB		67,010		553
Securitas AB -Class B		25,750		247
Switzerland (5.3%)
ACE, Ltd. ^		18,590		1,066
Adecco SA		12,770		444
Lonza Group AG		7,370		612
Nestle SA ADR		30,275		1,164
Novartis AG ADR		22,670		1,156
Swiss Reinsurance ^		11,470		478
UBS AG		17,015		289
Taiwan (1.3%)
Chunghwa Telecom Co., Ltd. ADR		35,258		580
Lite-On Technology Corp. GDR		30,713		196
Taiwan Semiconductor Manufacturing Co., Ltd. ADR ^		62,781		519
Turkey (0.6%)
Turkcell Iletisim Hizmet AS ADR ^		47,270		580
United Kingdom (11.1%)
Aviva PLC		92,990		555
BAE Systems PLC		112,160		630
BP PLC ADR ^		28,610		1,422
British Sky Broadcasting Group PLC		79,790		486
Cadbury PLC		38,348		352
Compass Group PLC		92,320		429
GlaxoSmithKline PLC		49,349		949
Group 4 Securicor PLC		220,390		668
HSBC Holdings PLC		38,729		459
HSBC Holdings PLC ADR ^		310		18
Kingfisher PLC ADR ^		52,500		190
Kingfisher PLC		123,010		227
Pearson PLC		59,240		590
Rolls-Royce Group PLC -Class C ‡		6,901,809		11
Rolls-Royce Group PLC ‡		120,661		638
Royal Bank of Scotland PLC		153,411		169
Royal Dutch Shell PLC -Class B		36,910		1,001

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

61

	Shares		Value
United Kingdom (continued)
Unilever PLC		34,487	$	775
Vodafone Group PLC		618,342		1,190
Wolseley PLC		44,260		242
United States (42.2%)
Allergan, Inc. ^		27,000		1,071
Amazon.com, Inc. ‡ ^		34,000		1,946
American Express Co.		26,000		715
Apple, Inc. ‡ ^		20,100		2,163
AT&T, Inc.		47,000		1,257
Becton Dickinson & Co.		13,420		931
Boeing Co. ^		15,500		810
BorgWarner, Inc. ^		37,300		838
Caterpillar, Inc. ^		21,800		832
CME Group, Inc. -Class A ^		4,000		1,129
Ecolab, Inc. ^		31,500		1,174
Expeditors International of Washington, Inc. ^		41,700		1,362
General Electric Co.		92,000		1,795
Gilead Sciences, Inc. ‡		51,500		2,361
Google, Inc. -Class A ‡		5,000		1,797
Jacobs Engineering Group, Inc. ‡		41,000		1,494
Johnson Controls, Inc.		73,000		1,294
PACCAR, Inc. ^		47,000		1,374
Praxair, Inc.		42,000		2,736
Qualcomm, Inc.		51,500		1,970
Raytheon Co. ^		46,000		2,351
Sigma-Aldrich Corp. ^		36,000		1,579
T. Rowe Price Group, Inc. ^		46,500		1,839
Tyco Electronics, Ltd.		84,000		1,633
Union Pacific Corp.		30,000		2,003
Varian Medical Systems, Inc. ‡ ^		38,000		1,729
Wells Fargo & Co. ^		44,000		1,499
Total Common Stocks (cost $128,580)			$	93,561
	Principal
REPURCHASE AGREEMENT (4.9%)
United States (4.9%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $4,806 on 11/03/2008 ◊ •	$	4,806		4,806
Total Repurchase Agreement (cost $4,806)				4,806
	Shares
RIGHTS (0.1%)
France (0.1%)
Suez Environnement SA		15,150		69
Total Rights (cost $107)				69
SECURITIES LENDING COLLATERAL (25.7%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.71% ◊ ▲		25,399,984		25,400
Total Securities Lending Collateral (cost $25,400)				25,400
Total Investment Securities (cost $158,893) #			$	123,836

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

62

	Percentage of
	Total Investments			Value
INVESTMENTS BY INDUSTRY:
Diversified Telecommunication Services		5.2	%	$	6,429
Oil, Gas & Consumable Fuels		4.5	%		5,539
Chemicals		4.4	%		5,489
Pharmaceuticals		4.4	%		5,475
Aerospace & Defense		4.0	%		4,972
Commercial Banks		4.0	%		4,930
Insurance		2.8	%		3,427
Industrial Conglomerates		2.8	%		3,422
Health Care Equipment & Supplies		2.4	%		3,004
Electronic Equipment & Instruments		2.2	%		2,766
Auto Components		2.1	%		2,668
Communications Equipment		2.0	%		2,424
Biotechnology		1.9	%		2,361
Computers & Peripherals		1.9	%		2,358
Food Products		1.9	%		2,291
Machinery		1.8	%		2,206
Capital Markets		1.7	%		2,127
Media		1.7	%		2,127
Road & Rail		1.6	%		2,003
Internet & Catalog Retail		1.6	%		1,946
Automobiles		1.6	%		1,942
Semiconductors & Semiconductor Equipment		1.5	%		1,870
Air Freight & Logistics		1.5	%		1,823
Internet Software & Services		1.4	%		1,797
Wireless Telecommunication Services		1.4	%		1,770
Diversified Financial Services		1.4	%		1,723
Software		1.4	%		1,728
Construction & Engineering		1.2	%		1,494
Consumer Finance		1.0	%		1,184
Electric Utilities		0.9	%		1,145
Hotels, Restaurants & Leisure		0.8	%		965
Energy Equipment & Services		0.8	%		941
Specialty Retail		0.7	%		924
Commercial Services & Supplies		0.7	%		915
Multi-Utilities		0.6	%		713
Professional Services		0.6	%		686
Paper & Forest Products		0.5	%		632
Health Care Providers & Services		0.5	%		578
Life Sciences Tools & Services		0.4	%		612
Real Estate Management & Development		0.4	%		451
Office Electronics		0.3	%		358
Metals & Mining		0.3	%		337
Construction Materials		0.2	%		315
Electrical Equipment		0.2	%		276
Household Durables		0.2	%		245
Trading Companies & Distributors		0.2	%		242
Investment Securities, at Value		75.6	%		93,630
Short-Term Investments		24.4	%		30,206
Total Investments		100.0	%	$	123,836

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

63

NOTES TO SCHEDULE OF INVESTMENTS:
^	All or a portion of this security is on loan. The value of all securities on loan is $24,674.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 3.56% to 5.00%, maturity dates ranging between 12/01/2019 — 10/25/2036, and with market values plus accrued interests of $4,907.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 10/31/2008.
#	Aggregate cost for federal income tax purposes is $159,716. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $1,580 and $37,460, respectively. Net unrealized depreciation for tax purposes is $35,880.

Security Valuation - If the market quotations are not readily available, or if the investment advisor determines that the quotation does not represent a fair value, then the security is valued at a fair value as determined in good faith using procedures approved by the Board of Trustees of the Fund. The Fund has retained an independent statistical fair value pricing service to assist in the fair valuation process for securities principally traded in the foreign market in order to adjust for possible changes in the value that may occur between the close of the foreign exchange and the time at which the Fund’s shares are valued. At 10/31/2008, the fair value pricing model was employed. The prices of securities used by the Fund to calculate its net asset value may differ from quoted or published prices for the same securities. In addition, fair values may not reflect the price that the Fund could obtain for a security if it were to dispose of that security at the time of pricing.

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 10/31/2008, these securities aggregated $994, or 1.01% of the Fund’s net assets.
ADR	American Depositary Receipt
GDR	Global Depositary Receipt
PLC	Public Limited Company

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

64

Transamerica Value Balanced
(unaudited)

MARKET ENVIRONMENT

US securities markets faced many challenges in the twelve months ended October 31, 2008, ultimately delivering strongly negative returns across the board. The Russell 1000^® Value Index (“Russell 1000 Value”) declined 36.80% and the Barclays Capital (formerly Lehman Brothers) US Aggregate Bond Index (“BCAB”) slightly increased 0.30%.

Throughout the period, problems plaguing the housing market continued, while commodity prices first soared then plummeted. Meanwhile, what began as concerns about securities related to defaulting sub-prime mortgages escalated into a variety of increasingly severe crises in the markets where banks lend to each other and to businesses, causing extreme disruption in both US and foreign financial markets. As the problems multiplied, financial institutions tightened their lending standards. The higher borrowing costs made it more difficult for companies to fund payroll, inventory and other near-term expenses. Consumers, already feeling the effects of higher energy and food prices, rising unemployment and lack of wage growth, also found it more difficult to borrow. Although the Federal Reserve Board (“Fed”) and the US government intervened to restore confidence in the financial systems, the US headed toward recession and expectations of a global economic slowdown increased.

PERFORMANCE

For the year ended October 31, 2008, Transamerica Value Balanced Class A returned (32.94)%. By comparison, its primary and secondary benchmarks, the Russell 1000 Value and the BCAB, returned (36.80)% and 0.30%, respectively.

STRATEGY REVIEW

The portfolio underperformed the blended benchmark, reflecting an overweighting in equities, which underperformed bonds, and underperformance of the equity and bond portfolios as compared to their respective benchmarks.

On the equity side, we attribute underperformance to overweighting energy and shipping-related stocks. As the period progressed, investors shunned these stocks over concerns that the global supply-demand ratios driving their growth will deteriorate as economic growth abates worldwide. The largest individual detractors from relative performance included Aegean Marine Petroleum Network Inc. and McDermott International, Inc., an oil services company. The negative impact of these was partially offset by another energy stock, Fording Canadian Coal Trust, and by gains from software giant Microsoft Corporation early in the period. Management of the portfolio was transferred to a new team at Transamerica Investment Management as of October 1, 2008. The new team began repositioning the portfolio to be more diversified by sector and industry while keeping it relatively concentrated in 35 — 45 names. In selecting stocks to replace the energy, shipping and other stocks vulnerable to the slowing global economy, we focused on companies that derive more of their revenues from US sources.

We believe that since the US was first to take action to stave off recession, it also will emerge from the economic downturn before others do.

In the bond portfolio, an overweighting of non-government sectors (i.e., investment-grade corporate securities and agency mortgage securities), which lagged the Treasury sector, was the primary source of underperformance. The negative effect of these overweightings was partially mitigated by our individual security selection. Among investment-grade corporate bonds, we had no exposure to the most distressed companies in the troubled financial services sector. Our mortgage exposure emphasized short-duration agency collateralized mortgage obligations, which were less volatile than other mortgage securities.

We believe a consumer-driven recession has already arrived. We believe the federal government’s $700-billion rescue of the financial services sector should provide some much-needed rationality in the markets. We believe it should help to rebuild trust and reduce the severity of the recession. In the interim, we believe high levels of market volatility will likely persist.

Greg D. Haendel, CFA
Geoffrey I. Edelstein, CFA, CIC
Derek S. Brown, CFA
Scott L. Dinsdale, CFA
Kirk R. Feldhus
Brian W. Westhoff, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

Prior to October 1, 2008, Heidi Y. Hu and Michelle E. Stevens were co-portfolio managers to this fund.

65

Average Annual Total Return for Periods Ended 10/31/2008

										From			Inception
	1 Year			5 Years			10 Years			Inception			Date
Class A (NAV)		(32.94	)%		0.14	%		1.05	%		3.70	%		10/1/95
Class A (POP)		(36.64	)%		(0.99	)%		0.48	%		3.25	%		10/1/95
Russell 1000 Value(1)		(36.80	)%		1.90	%		2.79	%		7.14	%		10/1/95
Barclays Capital U.S. Aggregate Bond Index(1)		0.30	%		3.48	%		5.00	%		5.75	%		10/1/95
Class B (NAV)		(33.37	)%		(0.53	)%		0.51	%		3.28	%		10/1/95
Class B (POP)		(36.47	)%		(0.69	)%		0.51	%		3.28	%		10/1/95
Class C (NAV)		(33.33	)%		(0.49	)%		N/A			2.64	%		11/11/02
Class C (POP)		(33.94	)%		(0.49	)%		N/A			2.64	%		11/11/02

NOTES
(1)	The Russell 1000 Value Index and the Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers Aggregate Bond) are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Public Offering Price (POP) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. Net Asset Value (NAV) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this Fund.

66

UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The Example is based on an investment of $1,000 invested at May 1, 2008 and held for the entire period until October 31, 2008.

ACTUAL EXPENSES

The first line in the table provides information about actual account values and actual expenses. You may use the information in this line, 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 = 8.6), then multiply the result by the number in the first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

	Beginning		Ending		Annualized			Expenses
	Account		Account		Expense			Paid During
	Value		Value		Ratio			Period (a)
Class A
Actual	$	1,000.00	$	738.57		1.55	%	$	6.77
Hypothetical (b)		1,000.00		1,017.34		1.55			7.86
Class B
Actual		1,000.00		736.21		2.20			9.60
Hypothetical (b)		1,000.00		1,014.08		2.20			11.14
Class C
Actual		1,000.00		736.65		2.10			9.17
Hypothetical (b)		1,000.00		1,014.58		2.10			10.63

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Asset Type
At October 31, 2008
(unaudited)

This chart shows the percentage breakdown by Asset Type of the Fund’s total investment securities. Percentage breakdown of Short-term category includes Securities Lending Collateral.

67

SCHEDULE OF INVESTMENTS
At October 31, 2008
(all amounts except share amounts in thousands)

	Principal		Value
U.S. GOVERNMENT OBLIGATIONS (3.0%)
U.S. Treasury Bond
4.38%, due 02/15/2038 ^	$	265	$	266
5.00%, due 05/15/2037		25		28
U.S. Treasury Inflation Indexed Note
1.38%, due 07/15/2018 ^		51		43
U.S. Treasury Note
3.13%, due 09/30/2013 ^		447		454
4.00%, due 08/15/2018 ^		132		132
Total U.S. Government Obligations (cost $941)				923
U.S. GOVERNMENT AGENCY OBLIGATIONS (18.3%)
Fannie Mae
4.72%, due 10/01/2035 *		338		339
5.00%, due 05/01/2018		89		88
5.50%, due 07/01/2019 - 01/01/2038		1,323		1,304
6.00%, due 04/01/2033 - 12/01/2037		1,267		1,267
6.50%, due 10/01/2037		391		397
Freddie Mac
5.00%, due 04/01/2018 - 11/15/2032		1,189		1,166
5.35%, due 11/14/2011		120		120
5.50%, due 09/01/2018 - 11/01/2018		140		141
5.51%, due 09/01/2037 *		363		365
6.00%, due 12/01/2033		276		276
Ginnie Mae
6.00%, due 06/15/2034		131		131
6.50%, due 10/15/2027		55		56
Total U.S. Government Agency Obligations (cost $5,730)				5,650
MORTGAGE-BACKED SECURITIES (2.6%)
American Tower Trust
Series 2007-1A, Class C
5.62%, due 04/15/2037 -144A		155		128
Bear Stearns Commercial Mortgage Securities
Series 2006-PW14, Class A4
5.20%, due 12/11/2038		238		179
Morgan Stanley Capital I
Series 2006-HQ10, Class A4
5.33%, due 11/12/2041		232		176
SBA CMBS Trust
Series 2006-1A, Class A
5.31%, due 11/15/2036 -144A		150		140
Wachovia Bank Commercial Mortgage Trust
Series 2006-C28, Class A4
5.57%, due 10/15/2048		223		170
Series 2007-C32, Class H
5.74%, due 06/15/2049 -144A		85		22
Total Mortgage-Backed Securities (cost $1,077)				815
ASSET-BACKED SECURITY (0.4%)
USAA Auto Owner Trust
Series 2008-2, Class A3
4.64%, due 10/15/2012		135		131
Total Asset-Backed Security (cost $135)				131
CORPORATE DEBT SECURITIES (12.0%)
Airlines (0.4%)
Continental Airlines, Inc.
7.49%, due 10/02/2010		75		70
Delta Air Lines, Inc.
7.57%, due 11/18/2010		85		71
Automobiles (0.8%)
Daimler Finance North America LLC
3.25%, due 03/13/2009 *		115		109
8.00%, due 06/15/2010		130		115
Beverages (0.8%)
Diageo Capital PLC
5.75%, due 10/23/2017 ^		148		127
PepsiCo, Inc.
7.90%, due 11/01/2018		125		132
Building Products (0.3%)
CRH America, Inc.
5.30%, due 10/15/2013		100		80
Capital Markets (0.4%)
Merrill Lynch & Co., Inc.
5.45%, due 02/05/2013		150		135
Commercial Banks (0.5%)
Barclays Bank PLC
7.70%, due 04/25/2018 -144A n Ž		120		83
PNC Bank NA
6.88%, due 04/01/2018		80		74
Diversified Financial Services (1.2%)
General Electric Capital Corp.
4.80%, due 05/01/2013		130		117
Glencore Funding LLC
6.00%, due 04/15/2014 -144A		138		130
Pemex Finance, Ltd.
9.03%, due 02/15/2011		125		126
Diversified Telecommunication Services (0.4%)
Verizon Communications, Inc.
8.75%, due 11/01/2018		123		126
Food & Staples Retailing (0.3%)
Stater Brothers Holdings, Inc.
8.13%, due 06/15/2012		100		89
Food Products (0.5%)
Cargill, Inc.
5.60%, due 09/15/2012 -144A		80		74
Michael Foods, Inc.
8.00%, due 11/15/2013		90		78
Hotels, Restaurants & Leisure (0.2%)
Royal Caribbean Cruises, Ltd.
8.75%, due 02/02/2011		70		60
Household Products (0.2%)
Kimberly-Clark Corp.
6.63%, due 08/01/2037		80		70
Industrial Conglomerates (0.4%)
Hutchison Whampoa International, Ltd.
5.45%, due 11/24/2010 -144A		140		132
Insurance (0.1%)
Oil Insurance, Ltd.
7.56%, due 06/30/2011 -144A n Ž		80		41
Machinery (0.3%)
Tyco Electronics Group SA
6.55%, due 10/01/2017		96		80
Media (0.8%)
Comcast Corp.
7.05%, due 03/15/2033		95		79
News America Holdings, Inc.
7.75%, due 12/01/2045		65		54
Time Warner Cable, Inc.
6.75%, due 07/01/2018		125		107
Metals & Mining (0.2%)
Arcelormittal
5.38%, due 06/01/2013 -144A		80		65

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

68

	Principal		Value
Multiline Retail (0.4%)
Neiman-Marcus Group, Inc.
9.00%, due 10/15/2015	$	100	$	69
Target Corp.
7.00%, due 01/15/2038		79		60
Multi-Utilities (0.5%)
Sempra Energy
4.75%, due 05/15/2009		145		143
Oil, Gas & Consumable Fuels (0.8%)
Enterprise Products Operating, LP
4.63%, due 10/15/2009		120		115
Petrobras International Finance Co.
5.88%, due 03/01/2018		90		71
PetroHawk Energy Corp.
9.13%, due 07/15/2013		100		77
Paper & Forest Products (0.6%)
Celulosa Arauco y Constitucion SA
8.63%, due 08/15/2010		171		178
Real Estate Investment Trusts (0.5%)
Wea Finance LLC / WCI Finance LLC
5.40%, due 10/01/2012 -144A		168		146
Real Estate Management & Development (0.5%)
Post Apartment Homes, LP
6.30%, due 06/01/2013		171		168
Road & Rail (0.9%)
Burlington Northern Santa Fe Corp.
6.13%, due 03/15/2009		80		80
Hertz Corp.
8.88%, due 01/01/2014		75		55
Norfolk Southern Corp.
6.20%, due 04/15/2009		120		120
Total Corporate Debt Securities (cost $4,211)				3,706

	Shares
COMMON STOCKS (57.9%)
Aerospace & Defense (1.4%)
Raytheon Co. ^		8,215		420
Auto Components (0.6%)
BorgWarner, Inc. ^		8,100		182
Capital Markets (2.3%)
AllianceBernstein Holding, LP ^		22,623		530
BlackRock, Inc. ^		1,530		201
Chemicals (1.5%)
Praxair, Inc.		7,200		469
Construction & Engineering (0.3%)
Jacobs Engineering Group, Inc. ‡		2,519		92
Diversified Financial Services (3.8%)
Bank of America Corp. ^		19,021		460
CME Group, Inc. ^		1,095		309
JPMorgan Chase & Co. ^		9,800		404
Diversified Telecommunication Services (0.9%)
AT&T, Inc.		10,868		291
Electric Utilities (0.7%)
Dominion Resources, Inc. ^		6,000		218
Electronic Equipment & Instruments (0.9%)
Tyco Electronics, Ltd. ^		13,700		266
Energy Equipment & Services (1.7%)
Transocean, Inc. ^		6,422		529
Food Products (2.0%)
Kraft Foods, Inc. -Class A ^		21,037		613
Health Care Equipment & Supplies (1.3%)
Becton Dickinson & Co.		5,723		397
Household Products (2.4%)
Colgate-Palmolive Co. ^		7,000		439
Kimberly-Clark Corp. ^		5,000		307
Industrial Conglomerates (1.9%)
General Electric Co.		29,579		577
Insurance (0.7%)
MetLife, Inc. ^		6,700		223
Life Sciences Tools & Services (1.6%)
Thermo Fisher Scientific, Inc. ‡ ^		12,000		487
Media (1.5%)
Walt Disney Co. ^		17,800		461
Metals & Mining (1.4%)
Cia Vale do Rio Doce ADR ^		34,000		446
Oil, Gas & Consumable Fuels (7.1%)
Anadarko Petroleum Corp. ^		11,000		388
BP PLC ADR ^		9,485		471
Exxon Mobil Corp. ^		10,700		793
XTO Energy, Inc. ^		15,000		539
Pharmaceuticals (9.4%)
Bristol-Myers Squibb Co.		57,764		1,187
Merck & Co., Inc. ^		35,000		1,083
Pfizer, Inc. ^		36,935		654
Real Estate Investment Trusts (1.2%)
Plum Creek Timber Co., Inc. ^		10,200		380
Road & Rail (2.5%)
Union Pacific Corp.		11,400		761
Software (3.3%)
Microsoft Corp.		35,870		801
Oracle Corp. ‡		11,004		201
Textiles, Apparel & Luxury Goods (0.9%)
Nike, Inc.		4,576		264
Tobacco (6.6%)
Lorillard, Inc. ^		11,000		725
Philip Morris International, Inc.		30,400		1,322
Total Common Stocks (cost $18,387)			$	17,890

	Principal
REPURCHASE AGREEMENT (6.0%)
State Street Repurchase Agreement 0.15%, dated 10/31/2008, to be repurchased at $1,848 on 11/03/2008 à •	$	1,848	1,848
Total Repurchase Agreement (cost $1,848)			1,848

	Shares
SECURITIES LENDING COLLATERAL (23.0%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.71% à ▲		7,120,161		7,120
Total Securities Lending Collateral (cost $7,120)				7,120
Total Investment Securities (cost $39,449) #			$	38,083

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

69

NOTES TO SCHEDULE OF INVESTMENTS:
^	All or a portion of this security is on loan. The value of all securities on loan is $6,953.
*	Floating or variable rate note. Rate is listed as of 10/31/2008.
Ž	The security has a perpetual maturity. The date shown is the next call date.
n	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 10/31/2008.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 4.00%, and a maturity date of 06/01/2014, and with a market value plus accrued interest of $1,887.
à	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 10/31/2008.
#	Aggregate cost for federal income tax purposes is $39,153. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $2,954 and $4,024, respectively. Net unrealized depreciation for tax purposes is $1,070.

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 10/31/2008, these securities aggregated $961, or 3.11% of the Fund’s net assets.
ADR	American Depositary Receipt
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

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

70

STATEMENTS OF ASSETS AND LIABILITIES

At October 31, 2008
(all amounts except share amounts in thousands)

				Transamerica									Transamerica
	Transamerica			Convertible			Transamerica			Transamerica			Growth
	Balanced			Securities			Equity			Flexible Income			Opportunities
Assets:
Investment securities, at cost	$	148,281		$	147,921		$	1,481,800		$	201,142		$	231,521
Securities loaned, at value		25,194			15,182			203,507			16,077			39,145
Investment securities, at value	$	130,300		$	124,706		$	1,265,888		$	169,564		$	199,883
Receivables:
Investment securities sold		255			4,315			—			7,290			2,003
Shares of beneficial interest sold		4			315			280			182			37
Interest		540			401			1			2,548			—
Income from loaned securities		18			12			80			11			55
Dividends		81			124			1,316			—			50
Dividend reclaims		63			—			459			—			—
Unrealized appreciation on forward foreign currency contracts		—			—			—			48			—
Other		41			8			421			16			18
	$	131,302		$	129,881		$	1,268,445		$	179,659		$	202,046
Liabilities:
Investment securities purchased		5,024			1,733			60,479			6,724			2,781
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed		139			89			377			243			80
Management and advisory fees		70			74			667			105			99
Distribution and service fees		60			12			184			17			39
Trustees fees		41			8			425			17			19
Transfer agent fees		31			4			169			7			52
Administration fees		2			2			17			3			3
Payable for collateral for securities on loan		25,791			15,504			208,082			16,417			40,056
Other		39			38			147			49			45
		31,197			17,464			270,547			23,582			43,174
Net Assets	$	100,105		$	112,417		$	997,898		$	156,077		$	158,872
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	111,952		$	152,489		$	1,675,207		$	234,496		$	322,557
Undistributed (accumulated) net investment income (loss)		189			520			2,369			805			(17	)
Undistributed (accumulated) net realized gain (loss) from investments		5,958			(17,373	)		(463,601	)		(47,685	)		(132,021	)
Net unrealized appreciation (depreciation) on:
Investment securities		(17,999	)		(23,219	)		(216,106	)		(31,586	)		(31,647	)
Translation of assets and liabilities denominated in foreign currencies		5			—			29			47			—
Net Assets	$	100,105		$	112,417		$	997,898		$	156,077		$	158,872
Net Assets by Class:
Class A	$	49,917		$	10,748		$	300,140		$	13,360		$	41,005
Class B		32,469			2,920			59,479			8,628			20,823
Class C		17,719			7,070			46,676			5,981			10,619
Class I					91,679			500,722			128,108			86,425
Class T								90,881
Shares Outstanding:
Class A		3,035			1,496			43,793			1,849			6,241
Class B		1,984			410			9,272			1,194			3,395
Class C		1,087			996			7,244			830			1,724
Class I					12,756			71,654			17,662			12,829
Class T								4,749
Net Asset Value Per Share:
Class A	$	16.44		$	7.18		$	6.85		$	7.22		$	6.57
Class B		16.37			7.13			6.42			7.23			6.13
Class C		16.30			7.10			6.44			7.21			6.16
Class I					7.19			6.99			7.25			6.74
Class T								19.14
Maximum Offering Price Per Share (a)
Class A	$	17.40		$	7.54		$	7.25		$	7.58		$	6.95

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

71

				Transamerica					Transamerica			Transamerica
	Transamerica			Legg Mason			Transamerica		Science &			Short-Term
	High Yield Bond			Partners All Cap			Money Market		Technology			Bond
Assets:
Investment securities, at cost	$	686,204		$	107,919		$	274,133	$	81,781		$	537,189
Securities loaned, at value		65,402			19,464			—		12,875			16,847
Investment securities, at value	$	508,664		$	97,379		$	274,133	$	66,751		$	516,480
Prepaid money market guarantee insurance		—			—			15		—			—
Receivables:
Investment securities sold		1,473			—			—		—			1,900
Shares of beneficial interest sold		1			12			717		34			160
Interest		15,046			—			—		—			5,522
Income from loaned securities		61			12			—		16			13
Dividends		—			71			—		25			—
Dividend reclaims		—			26			—		—			—
Variation margin		—			—			—		—			320
Other		26			29			11		4			—
	$	525,271		$	97,529		$	274,876	$	66,830		$	524,395
Liabilities:
Investment securities purchased		—			27			—		—			1,413
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed		129			114			2,469		4			143
Management and advisory fees		241			61			91		34			276
Distribution and service fees		21			51			119		4			7
Trustees fees		28			29			14		4			2
Transfer agent fees		7			31			30		4			1
Administration fees		8			1			4		1			9
Dividends to shareholders		—			—			216		—			—
Payable for collateral for securities on loan		66,811			19,953			—		13,234			17,209
Other		77			39			49		34			76
		67,322			20,306			2,992		13,319			19,136
Net Assets	$	457,949		$	77,223		$	271,884	$	53,511		$	505,259
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	643,275		$	89,739		$	271,801	$	69,107		$	538,833
Undistributed (accumulated) net investment income (loss)		3,067			525			83		(2	)		1,333
Accumulated net realized loss from investments		(10,842	)		(2,488	)		—		(563	)		(14,040	)
Net unrealized depreciation on:
Investment securities		(177,551	)		(10,553	)		—		(15,031	)		(20,707	)
Futures contracts		—			—			—		—			(160	)
Net Assets	$	457,949		$	77,223		$	271,884	$	53,511		$	505,259
Net Assets by Class:
Class A	$	24,506		$	28,237		$	142,456	$	3,778		$	5,663
Class B		9,091			33,670			40,110		2,094
Class C		5,429			15,316			59,991		1,417			7,263
Class I		418,923						29,327		46,222			492,333
Shares Outstanding:
Class A		3,877			2,828			142,456		1,330			600
Class B		1,439			3,646			40,110		781
Class C		860			1,655			59,991		529			771
Class I		65,845						29,327		15,972			53,046
Net Asset Value Per Share:
Class A	$	6.31		$	9.98		$	1.00	$	2.84		$	9.44
Class B		6.30			9.24			1.00		2.68
Class C		6.30			9.26			1.00		2.68			9.42
Class I		6.35						1.00		2.89			9.28
Maximum Offering Price Per Share (a)
Class A	$	6.62		$	10.56		$	1.00	$	3.01		$	9.68

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

72

	Transamerica			Transamerica
	Small/Mid Cap			Templeton			Transamerica
	Value			Global			Value Balanced
Assets:
Investment securities, at cost	$	728,930		$	158,893		$	39,449
Foreign currency cost		—			170			—
Securities loaned, at value		127,833			24,674			6,953
Investment securities, at value	$	661,303		$	123,836		$	38,083
Foreign currency		—			157			—
Receivables:
Investment securities sold		15,091			1,366			207
Shares of beneficial interest sold		1,471			9			3
Interest		—			—			102
Income from loaned securities		116			15			5
Dividends		360			264			54
Dividend reclaims		—			169			—
Other		14			119			16
	$	678,355		$	125,935		$	38,470
Liabilities:
Investment securities purchased		2,849			1,341			295
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed		1,845			58			42
Management and advisory fees		404			89			24
Distribution and service fees		182			45			16
Trustees fees		17			119			16
Transfer agent fees		79			56			11
Administration fees		10			2			1
Due to custodian		—			12			—
Payable for collateral for securities on loan		131,870			25,400			7,120
Other		93			60			32
		137,349			27,182			7,557
Net Assets	$	541,006		$	98,753		$	30,913
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	699,842		$	431,026		$	35,700
Undistributed net investment income		7,851			421			349
Accumulated net realized loss from investments		(99,054	)		(297,573	)		(3,762	)
Net unrealized depreciation on:
Investment securities		(67,633	)		(35,112	)		(1,374	)
Translation of assets and liabilities denominated in foreign currencies		—			(9	)		—
Net Assets	$	541,006		$	98,753		$	30,913
Net Assets by Class:
Class A	$	199,210		$	73,721		$	18,666
Class B		31,716			10,746			6,414
Class C		95,729			14,286			5,833
Class I		214,351
Shares Outstanding:
Class A		15,685			3,754			2,096
Class B		2,603			584			722
Class C		7,913			782			658
Class I		16,736
Net Asset Value Per Share:
Class A	$	12.70		$	19.63		$	8.91
Class B		12.19			18.41			8.88
Class C		12.10			18.27			8.87
Class I		12.81
Maximum Offering Price Per Share (a)
Class A	$	13.44		$	20.77		$	9.43

(a) Includes the maximum selling commission (represented as a percentage of offering price) which is reduced on certain levels of sales as set forth in the Prospectus. Net asset value per share for classes B, C, and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.

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

73

STATEMENTS OF OPERATIONS

For the year ended October 31, 2008
(all amounts except share amounts in thousands)

				Transamerica									Transamerica
	Transamerica			Convertible			Transamerica			Transamerica			Growth
	Balanced			Securities			Equity			Flexible Income			Opportunities
Investment Income:
Dividends	$	1,411		$	1,117		$	19,353		$	475		$	1,780
Withholding taxes on foreign dividends		—			—			—			(3	)		(1	)
Interest		2,700			2,755			760			22,348			225
Income from loaned securities-net		70			38			351			249			749
		4,181			3,910			20,464			23,069			2,753
Expenses:
Management and advisory fees		1,210			1,172			11,079			2,535			2,135
Distribution and service fees:
Class A		213			48			1,580			54			191
Class B		640			50			1,236			130			418
Class C		264			77			789			81			168
Transfer agent fees:
Class A		178			19			1,297			40			327
Class B		174			9			569			36			254
Class C		55			7			224			16			82
Class T								193
Printing and shareholder reports		8			21			135			41			17
Custody fees		28			19			152			44			31
Administration fees		30			31			310			71			54
Legal fees		4			4			39			9			6
Audit fees		20			20			21			20			20
Trustees fees		3			3			26			6			4
Registration fees		—			2			—			1			—
Other		23			36			88			36			37
Total expenses		2,850			1,518			17,738			3,120			3,744
Net of reimbursement of class expenses:
Class A														(31	)
Class B								(54	)					(27	)
Total reimbursed expenses		—			—			(54	)		—			(58	)
Net expenses		2,850			1,518			17,684			3,120			3,686
Net Investment Income (Loss)		1,331			2,392			2,780			19,949			(933	)
Net Realized Gain (Loss) from:
Investment securities		6,221			(17,308	)		(58,064	)		(34,897	)		(20,795	)
Futures contracts		1			—			—			2			—
Foreign currency transactions		—			—			—			362			—
		6,222			(17,308	)		(58,064	)		(34,533	)		(20,795	)
Net Decrease in Unrealized Depreciation on:
Investment securities		(63,988	)		(55,761	)		(731,315	)		(26,145	)		(114,155	)
Translation of assets and liabilities denominated in foreign currencies		—			—			29			47			—
		(63,988	)		(55,761	)		(731,286	)		(26,098	)		(114,155	)
Net Realized and Unrealized Loss:		(57,766	)		(73,069	)		(789,350	)		(60,631	)		(134,950	)
Net Decrease In Net Assets Resulting from Operations	$	(56,435	)	$	(70,677	)	$	(786,570	)	$	(40,682	)	$	(135,883	)

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

74

				Transamerica Legg						Transamerica
	Transamerica High			Mason Partners All			Transamerica			Science &			Transamerica
	Yield Bond			Cap			Money Market			Technology			Short-Term Bond
Investment Income:
Dividends	$	—		$	2,990		$	—		$	177		$	—
Withholding taxes on foreign dividends		—			(18	)		—			(2	)		—
Interest		39,989			22			6,660			31			28,606
Income from loaned securities-net		410			72			—			195			194
		40,399			3,066			6,660			401			28,800
Expenses:
Management and advisory fees		2,652			1,022			822			619			3,522
Distribution and service fees:
Class A		118			142			399			22			6
Class B		155			616			270			35			—
Class C		86			256			325			22			22
Transfer agent fees:
Class A		54			143			271			27			1
Class B		32			211			69			22
Class C		13			65			61			9			1
Class I		—	(a)					—	(a)		—	(a)		1
Printing and shareholder reports		56			10			23			8			70
Custody fees		56			31			29			12			65
Administration fees		90			26			41			16			114
Legal fees		11			3			—			2			14
Audit fees		20			20			20			20			20
Trustees fees		7			2			—			1			9
Registration fees		8			—			2			—			2
Money Market guarantee insurance fees		—			—			7			—			—
Other		36			28			59			46			74
Total expenses		3,394			2,575			2,398			861			3,921
Net of reimbursement of class expenses:
Class A					(17	)		(276	)		(11	)
Class B					(24	)		(71	)		(12	)
Class C								(62	)		(3	)
Class I								(2	)
Total reimbursed expenses		—			(41	)		(411	)		(26	)		—
Net expenses		3,394			2,534			1,987			835			3,921
Net Investment Income (Loss)		37,005			532			4,673			(434	)		24,879
Net Realized Loss from:
Investment securities		(9,296	)		(1,842	)		—			(562	)		(10,112	)
Futures contracts		—			—			—			—			(29	)
Foreign currency transactions		—			—			—			(1	)		—
		(9,296	)		(1,842	)		—			(563	)		(10,141	)
Net Decrease in Unrealized Depreciation on:
Investment securities		(173,227	)		(48,557	)		—			(48,013	)		(19,666	)
Futures contracts		—			—			—			—			(160	)
		(173,227	)		(48,557	)		—			(48,013	)		(19,826	)
Net Realized and Unrealized Loss:		(182,523	)		(50,399	)		—			(48,576	)		(29,967	)
Net Increase (Decrease) In Net Assets Resulting from Operations	$	(145,518	)	$	(49,867	)	$	4,673		$	(49,010	)	$	(5,088	)

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

75

	Transamerica
	Small/Mid Cap			Transamerica			Transamerica Value
	Value			Templeton Global			Balanced
Investment Income:
Dividends	$	15,932		$	4,762		$	1,119
Withholding taxes on foreign dividends		(2	)		(339	)		(1	)
Interest		1,029			79			803
Income from loaned securities-net		1,346			76			18
		18,305			4,578			1,939
Expenses:
Management and advisory fees		5,769			1,441			359
Distribution and service fees:
Class A		687			376			95
Class B		444			345			117
Class C		937			243			91
Transfer agent fees:
Class A		410			416			78
Class B		100			189			43
Class C		171			93			19
Printing and shareholder reports		112			1			—	(a)
Custody fees		69			80			20
Administration fees		147			36			10
Legal fees		21			5			1
Audit fees		21			25			21
Trustees fees		14			4			1
Registration fees		13			—			—
Other		82			—			30
Total expenses		8,997			3,254			885
Net of reimbursement of class expenses:
Class A					(66	)		(3	)
Class B					(82	)		(11	)
Class C					(14	)
Total reimbursed expenses		—			(162	)		(14	)
Net expenses		8,997			3,092			871
Net Investment Income		9,308			1,486			1,068
Net Realized Gain (Loss) from:
Investment securities		(98,519	)		11,709			(3,768	)
Written option & swaption contracts		—			—			38
Foreign currency transactions		—			(486	)		—
		(98,519	)		11,223			(3,730	)
Net Decrease in Unrealized Depreciation on:
Investment securities		(296,332	)		(105,600	)		(14,662	)
Written option and swaption contracts		—			—			(34	)
Translation of assets and liabilities denominated in foreign currencies		—			(19	)		—
		(296,332	)		(105,619	)		(14,696	)
Net Realized and Unrealized Loss:		(394,851	)		(94,396	)		(18,426	)
Net Decrease In Net Assets Resulting from Operations	$	(385,543	)	$	(92,910	)	$	(17,358	)

(a) Rounds to less than $1.

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

76

STATEMENTS OF CHANGES IN NET ASSETS
(all amounts in thousands)

							Transamerica Convertible												Transamerica Flexible
	Transamerica Balanced						Securities						Transamerica Equity						Income
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2008			2007			2008			2007			2008			2007
Increase (Decrease) in Net Assets From:
Operations:
Net investment income (loss)	$	1,331		$	628		$	2,392		$	2,344		$	2,780		$	(4,855	)	$	19,949		$	20,505
Net realized gain (loss)(a)		6,222			24,204			(17,308	)		36,172			(58,064	)		189,148			(34,533	)		(6,948	)
Change in unrealized appreciation (depreciation)(b)		(63,988	)		5,146			(55,761	)		6,185			(731,286	)		179,879			(26,098	)		(5,879	)
Net increase (decrease) in net assets resulting from operations		(56,435	)		29,978			(70,677	)		44,701			(786,570	)		364,172			(40,682	)		7,678
Distributions to Shareholders:
From net investment income:
Class A		(699	)		(334	)		(133	)		(60	)								(849	)		(829	)
Class B		(286	)		(175	)		(15	)		(18	)								(600	)		(899	)
Class C		(161	)		(62	)		(38	)		(10	)								(386	)		(472	)
Class I								(1,811	)		(2,421	)								(18,830	)		(17,840	)
		(1,146	)		(571	)		(1,997	)		(2,509	)		—			—			(20,665	)		(20,040	)
From net realized gains:
Class A		(1,615	)					(2,349	)		(337	)
Class B		(2,368	)					(1,381	)		(351	)
Class C		(828	)					(861	)		(180	)
Class I								(31,579	)		(13,541	)
		(4,811	)		—			(36,170	)		(14,409	)		—			—			—			—
Capital Share Transactions:
Proceeds from shares sold:
Class A		3,878			3,526			13,963			5,352			42,081			44,265			3,320			4,630
Class B		2,063			2,783			1,164			852			4,848			7,379			1,949			1,542
Class C		1,325			1,128			9,648			704			5,391			9,600			2,580			3,467
Class I								6,078			14,218			51,057			92,884			28,018			166,452
Class T														1,798			1,657
		7,266			7,437			30,853			21,126			105,175			155,785			35,867			176,091
Dividends and distributions reinvested:
Class A		2,018			320			1,721			368			—						509			695
Class B		2,440			163			1,103			303									369			720
Class C		879			56			599			122									239			352
Class I								32,781			15,962									15,299			17,840
		5,337			539			36,204			16,755			—			—			16,416			19,607
Cost of shares redeemed:
Class A		(15,261	)		(16,478	)		(7,685	)		(2,550	)		(89,748	)		(136,142	)		(5,383	)		(7,258	)
Class B		(19,396	)		(30,403	)		(1,659	)		(2,301	)		(28,453	)		(55,373	)		(5,085	)		(7,431	)
Class C		(6,156	)		(10,378	)		(2,109	)		(1,357	)		(19,902	)		(24,350	)		(4,119	)		(7,097	)
Class I								(4,311	)		(162,514	)		(56,853	)		(86,650	)		(232,281	)		(23,682	)
Class T														(21,752	)		(51,342	)
		(40,813	)		(57,259	)		(15,764	)		(168,722	)		(216,708	)		(353,857	)		(246,868	)		(45,468	)
Redemption fee:
Class A		—			—			—			—			3			1			—			—
		—			—			—			—			3			1			—			—
Automatic conversions:
Class A		24,175			10,022			645			99			48,320			21,409			3,069			809
Class B		(24,175	)		(10,022	)		(645	)		(99	)		(48,320	)		(21,409	)		(3,069	)		(809	)
		—			—			—			—			—			—			—			—
Net increase (decrease) in net assets resulting from capital shares transactions		(28,210	)		(49,283	)		51,293			(130,841	)		(111,530	)		(198,071	)		(194,585	)		150,230
Net Increase (Decrease) in net assets		(90,602	)		(19,876	)		(57,551	)		(103,058	)		(898,100	)		166,101			(255,932	)		137,868
Net Assets:
Beginning of year	$	190,707		$	210,583		$	169,968		$	273,026		$	1,895,998		$	1,729,897		$	412,009		$	274,141
End of year	$	100,105		$	190,707		$	112,417		$	169,968		$	997,898		$	1,895,998		$	156,077		$	412,009
Undistributed (Accumulated) Net Investment Income (Loss)	$	189		$	4		$	520		$	93		$	2,369		$	(411	)	$	805		$	1,265

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

77

							Transamerica Convertible												Transamerica Flexible
	Transamerica Balanced						Securities						Transamerica Equity						Income
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2008			2007			2008			2007			2008			2007
Share Activity:
Shares issued:
Class A		168			151			1,322			397			4,098			4,226			359			493
Class B		93			120			111			66			511			747			214			164
Class C		60			49			939			52			552			963			290			372
Class I								509			1,104			6,453			8,822			2,984			17,539
Class T											64			57
		321			320			2,881			1,619			11,678			14,815			3,847			18,568
Shares issued-reinvested from distributions:
Class A		95			14			159			29			6			—			83			75
Class B		104			7			100			24			—			—			56			77
Class C		39			2			55			10			—			—			38			38
Class I		—			—			3,008			1,262			—			—			2,167			1,912
		238			23			3,322			1,325			6			—			2,344			2,102
Shares redeemed:
Class A		(712	)		(710	)		(784	)		(194	)		(9,119	)		(13,041	)		(630	)		(781	)
Class B		(893	)		(1,310	)		(168	)		(176	)		(3,011	)		(5,614	)		(585	)		(797	)
Class C		(289	)		(451	)		(235	)		(105	)		(2,172	)		(2,460	)		(483	)		(762	)
Class I								(465	)		(12,760	)		(7,429	)		(8,395	)		(27,886	)		(2,524	)
Class T														(787	)		(1,774	)
		(1,894	)		(2,471	)		(1,652	)		(13,235	)		(22,518	)		(31,284	)		(29,584	)		(4,864	)
Automatic conversions:
Class A		1,089			421			62			7			4,704			2,009			351			87
Class B		(1,096	)		(423	)		(62	)		(8	)		(5,003	)		(2,121	)		(351	)		(87	)
		(7	)		(2	)		—			(1	)		(299	)		(112	)		—			—
Net increase (decrease) in shares outstanding:
Class A		640			(124	)		759			239			(311	)		(6,806	)		163			(126	)
Class B		(1,792	)		1,606			(19	)		(94	)		(7,503	)		(6,988	)		(666	)		(643	)
Class C		(190	)		(400	)		759			(43	)		(1,620	)		(1,497	)		(155	)		(352	)
Class I								3,052			(10,394	)		(976	)		427			(22,735	)		16,927
Class T														(723	)		(1,717	)
		(1,342	)		(2,130	)		4,551			(10,292	)		(11,133	)		(16,581	)		(23,393	)		15,806

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

78

	Transamerica Growth						Transamerica High Yield						Transamerica Legg Mason						Transamerica Money
	Opportunities						Bond						Partners All Cap						Market
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2008			2007			2008			2007			2008			2007
Increase (Decrease) in Net Assets From:
Operations:
Net investment income (loss)	$	(933	)	$	(2,183	)	$	37,005		$	26,486		$	532		$	(57	)	$	4,673		$	7,680
Net realized gain (loss)(a)		(20,795	)		91,882			(9,296	)		3,704			(1,842	)		15,452			—			—
Change in unrealized appreciation (depreciation)(b)		(114,155	)		13,074			(173,227	)		(6,944	)		(48,557	)		1,843			—			—
Net increase (decrease) in net assets resulting from operations		(135,883	)		102,773			(145,518	)		23,246			(49,867	)		17,238			4,673			7,680
Distributions to Shareholders:
From net investment income:
Class A		—			—			(2,500	)		(2,554	)		—			(175	)		(2,745	)		(3,876	)
Class B		—			—			(1,008	)		(1,470	)		—			—			(473	)		(966	)
Class C		—			—			(574	)		(615	)		—			—			(539	)		(700	)
Class I		—			—			(31,427	)		(21,811	)		—			—			(927	)		(2,136	)
		—			—			(35,509	)		(26,450	)		—			(175	)		(4,684	)		(7,678	)
From net realized gains:
Class A		—			—			—			—			(4,246	)		(7,681	)		—			—
Class B		—			—			—			—			(7,861	)		(16,118	)		—			—
Class C		—			—			—			—			(3,130	)		(6,121	)		—			—
		—			—			—			—			(15,237	)		(29,920	)		—			—
Capital Share Transactions:
Proceeds from shares sold:
Class A		3,902			8,951			10,846			10,896			2,542			4,462			156,262			110,732
Class B		2,025			2,481			1,083			1,207			1,618			4,191			36,830			18,357
Class C		1,293			1,087			736			2,753			909			1,569			72,304			17,851
Class I		1,984			7,155			241,102			61,746			—			—			25,560			209,116
		9,204			19,674			253,767			76,602			5,069			10,222			290,956			356,056
Dividends and distributions reinvested:
Class A		—			—			1,345			1,803			4,108			7,515			2,215			3,727
Class B		—			—			502			980			7,238			14,734			376			893
Class C		—			—			267			358			2,816			5,461			404			655
Class I		—			—			20,457			21,811			—			—			811			2,120
		—			—			22,571			24,952			14,162			27,710			3,806			7,395
Cost of shares redeemed:
Class A		(14,166	)		(20,501	)		(14,351	)		(21,615	)		(15,837	)		(17,017	)		(115,331	)		(98,923	)
Class B		(9,511	)		(19,854	)		(6,552	)		(7,614	)		(23,998	)		(30,724	)		(16,870	)		(20,138	)
Class C		(4,474	)		(6,452	)		(3,074	)		(4,201	)		(10,843	)		(10,089	)		(32,353	)		(16,155	)
Class I		(45,766	)		(75,323	)		(11,363	)		(64,779	)		—			—			(31,716	)		(203,029	)
		(73,917	)		(122,130	)		(35,340	)		(98,209	)		(50,678	)		(57,830	)		(196,270	)		(338,245	)
Redemption fee:
Class A		1			1			1			—			—			—			—			—
		1			1			1			—			—			—			—			—
Automatic conversions:
Class A		15,592			2,209			2,666			794			8,181			2,342			3,549			1,515
Class B		(15,592	)		(2,209	)		(2,666	)		(794	)		(8,181	)		(2,342	)		(3,549	)		(1,515	)
		—			—			—			—			—			—			—			—
Net increase (decrease) in net assets resulting from capital shares transactions		(64,712	)		(102,455	)		240,999			3,345			(31,447	)		(19,898	)		98,492			25,206
Net Increase (Decrease) in net assets		(200,595	)		318			59,972			141			(96,551	)		(32,755	)		98,481			25,208
Net Assets:
Beginning of year	$	359,467		$	359,149		$	397,977		$	397,836		$	173,774		$	206,529		$	173,403		$	148,195
End of year	$	158,872		$	359,467		$	457,949		$	397,977		$	77,223		$	173,774		$	271,884		$	173,403
Undistributed (Accumulated) Net Investment Income (Loss)	$	(17	)	$	(17	)	$	3,067		$	1,537		$	525		$	(7	)	$	83		$	94

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

79

	Transamerica Growth						Transamerica High Yield						Transamerica Legg Mason						Transamerica Money
	Opportunities						Bond						Partners All Cap						Market
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2008			2007			2008			2007			2008			2007
Share Activity:
Shares issued:
Class A		427			939			1,223			1,171			183			263			156,265			110,732
Class B		235			288			112			130			128			260			36,830			18,357
Class C		144			125			82			299			73			99			72,304			17,852
Class I		224			796			27,503			6,700			—			—			25,560			209,116
		1,030			2,148			28,920			8,300			384			622			290,959			356,057
Shares issued-reinvested from distributions:
Class A		—			—			223			196			271			462			2,215			3,727
Class B		—			—			78			106			513			960			376			893
Class C		—			—			41			39			199			355			404			655
Class I		—			—			3,829			2,352			—			—			811			2,120
		—			—			4,171			2,693			983			1,777			3,806			7,395
Shares redeemed:
Class A		(1,569	)		(2,247	)		(1,734	)		(2,333	)		(1,145	)		(997	)		(115,331	)		(98,924	)
Class B		(1,105	)		(2,313	)		(787	)		(826	)		(1,867	)		(1,916	)		(16,870	)		(20,138	)
Class C		(529	)		(749	)		(380	)		(455	)		(835	)		(632	)		(32,353	)		(16,155	)
Class I		(5,248	)		(8,408	)		(1,605	)		(7,039	)		—			—			(31,716	)		(203,029	)
		(8,451	)		(13,717	)		(4,506	)		(10,653	)		(3,847	)		(3,545	)		(196,270	)		(338,246	)
Automatic conversions:
Class A		1,695			231			310			86			595			136			3,549			1,515
Class B		(1,809	)		(245	)		(310	)		(86	)		(641	)		(145	)		(3,549	)		(1,515	)
		(114	)		(14	)		—			—			(46	)		(9	)		—			—
Net increase (decrease) in shares outstanding:
Class A		553			(1,077	)		22			(880	)		(96	)		(136	)		46,698			17,050
Class B		(2,679	)		(2,270	)		(907	)		(676	)		(1,867	)		(841	)		16,787			(2,403	)
Class C		(385	)		(624	)		(257	)		(117	)		(563	)		(178	)		40,355			2,352
Class I		(5,024	)		(7,612	)		29,727			2,013			—			—			(5,345	)		8,207
		(7,535	)		(11,583	)		28,585			340			(2,526	)		(1,155	)		98,495			25,206

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

80

	Transamerica Science &						Transamerica Short-Term						Transamerica Small/Mid						Transamerica Templeton
	Technology						Bond						Cap Value						Global
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2008			2007			2008			2007			2008			2007
Increase (Decrease) in Net Assets From:
Operations:
Net investment income (loss)	$	(434	)	$	(423	)	$	24,879		$	24,122		$	9,308		$	6,180		$	1,486		$	1,081
Net realized gain (loss)(a)		(563	)		4,033			(10,141	)		(1,455	)		(98,519	)		77,381			11,223			21,798
Change in unrealized appreciation (depreciation)(b)		(48,013	)		27,561			(19,826	)		(1,233	)		(296,332	)		101,180			(105,619	)		31,307
Net increase (decrease) in net assets resulting from operations		(49,010	)		31,171			(5,088	)		21,434			(385,543	)		184,741			(92,910	)		54,186
Distributions to Shareholders:
From net investment income:
Class A		—			—			(73	)		—			(815	)		(339	)		(1,124	)		(1,297	)
Class B		—			—						—			—			—			(99	)		(375	)
Class C		—			—			(74	)		—			(207	)		(64	)		(199	)		(173	)
Class I		—			—			(24,970	)		(22,977	)		(4,881	)		(6,046	)		(700	)		(688	)
		—			—			(25,117	)		(22,977	)		(5,903	)		(6,449	)		(2,122	)		(2,533	)
From net realized gains:
Class A		(282	)		—			—			—			(12,319	)		(849	)		—			—
Class B		(157	)		—			—			—			(5,719	)		(821	)		—			—
Class C		(96	)		—			—			—			(7,564	)		(535	)		—			—
Class I		(2,576	)		—			—			—			(50,781	)		(8,419	)		—			—
		(3,111	)		—			—			—			(76,383	)		(10,624	)		—			—
Capital Share Transactions:
Proceeds from shares sold:
Class A		2,918			1,923			6,797			—			376,986			50,011			4,616			6,194
Class B		381			488			—			—			18,229			7,596			1,618			3,166
Class C		660			689			8,910			—			111,684			29,511			900			1,684
Class I		4,896			—			34,605			193,918			40,971			23,041			—			—
		8,855			3,100			50,312			193,918			547,870			110,159			7,134			11,044
Dividends and distributions reinvested:
Class A		268			—			27			—			10,992			1,137			1,085			1,262
Class B		149			—			—			—			5,175			750			94			356
Class C		78			—			29			—			6,054			502			189			164
Class I		2,576			—			19,101			22,977			55,662			14,464			700			688
		3,071			—			19,157			22,977			77,883			16,853			2,068			2,470
Cost of shares redeemed:
Class A		(3,212	)		(1,961	)		(923	)		—			(137,493	)		(21,331	)		(21,738	)		(39,581	)
Class B		(821	)		(1,317	)		—			—			(10,337	)		(14,052	)		(8,972	)		(19,012	)
Class C		(625	)		(712	)		(1,386	)		—			(21,818	)		(7,577	)		(5,417	)		(8,953	)
Class I		(1,428	)		—			(95,587	)		(30,905	)		(148,685	)		(152,163	)		(38,070	)		(3,733	)
		(6,086	)		(3,990	)		(97,896	)		(30,905	)		(318,333	)		(195,123	)		(74,197	)		(71,279	)
Redemption fee:
Class A		—			—			2			—			2			—			—			1
Class B		—			—			—			—			—			2			—			—
		—			—			2			—			2			2			—			1
Automatic conversions:
Class A		186			31			—			—			7,300			1,995			30,467			9,939
Class B		(186	)		(31	)		—			—			(7,300	)		(1,995	)		(30,467	)		(9,939	)
		—			—			—			—			—			—			—			—
Net increase (decrease) in net assets resulting from capital shares transactions		5,840			(890	)		(28,425	)		185,990			307,422			(68,109	)		(64,995	)		(57,764	)
Net Increase (Decrease) in net assets		(46,281	)		30,281			(58,630	)		184,447			(160,407	)		99,559			(160,027	)		(6,111	)
Net Assets:
Beginning of year	$	99,792		$	69,511		$	563,889		$	379,442		$	701,413		$	601,854		$	258,780		$	264,891
End of year	$	53,511		$	99,792		$	505,259		$	563,889		$	541,006		$	701,413		$	98,753		$	258,780
Undistributed (Accumulated) Net Investment Income (Loss)	$	(2	)	$	(2	)	$	1,333		$	1,571		$	7,851		$	5,056		$	421		$	337

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

81

	Transamerica Science &						Transamerica Short-Term						Transamerica Small/Mid						Transamerica Templeton
	Technology						Bond						Cap Value						Global
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2008			2007			2008			2007			2008			2007
Share Activity:
Shares issued:
Class A		616			404			689			—			20,500			2,339			148			197
Class B		92			110			—			—			1,013			385			61			108
Class C		154			149			908			—			6,200			1,464			32			57
Class I		1,201			—			2,942			19,678			3,081			1,173			—			—
		2,063			663			4,539			19,678			30,794			5,361			241			362
Shares issued-reinvested from distributions:
Class A		53			—			6			—			553			62			35			42
Class B		31			—			—			—			270			43			3			12
Class C		16			—			6			—			318			29			6			6
Class I		501			—			2,571			2,340			2,787			797			20			23
		601			—			2,583			2,340			3,928			931			64			83
Shares redeemed:
Class A		(774	)		(461	)		(95	)		—			(9,819	)		(1,076	)		(749	)		(1,245	)
Class B		(202	)		(318	)		—			—			(609	)		(745	)		(315	)		(645	)
Class C		(161	)		(177	)		(143	)		—			(1,406	)		(395	)		(198	)		(303	)
Class I		(394	)		—			(9,914	)		(3,135	)		(9,530	)		(8,356	)		(1,260	)		(124	)
		(1,531	)		(956	)		(10,152	)		(3,135	)		(21,364	)		(10,572	)		(2,522	)		(2,317	)
Automatic conversions:
Class A		47			7			—			—			385			96			1,006			312
Class B		(50	)		(7	)		—			—			(400	)		(100	)		(1,071	)		(332	)
		(3	)		—			—			—			(15	)		(4	)		(65	)		(20	)
Net increase (decrease) in shares outstanding:
Class A		(58	)		(50	)		600			—			11,619			1,421			440			(694	)
Class B		(129	)		(215	)		—			—			274			(417	)		(1,322	)		(857	)
Class C		9			(28	)		771			—			5,112			1,098			(160	)		(240	)
Class I		1,308			—			(4,401	)		18,883			(3,662	)		(6,386	)		(1,240	)		(101	)
		1,130			(293	)		(3,030	)		18,883			13,343			(4,284	)		(2,282	)		(1,892	)

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

82

	Transamerica Value
	Balanced
	Year Ended			Year Ended
	October 31,			October 31,
	2008			2007
Increase (Decrease) in Net Assets From:
Operations:
Net investment income	$	1,068		$	1,133
Net realized gain (loss)(a)		(3,730	)		4,199
Change in unrealized appreciation (depreciation)(b)		(14,696	)		2,184
Net increase (decrease) in net assets resulting from operations		(17,358	)		7,516
Distributions to Shareholders:
From net investment income:
Class A		(692	)		(537	)
Class B		(196	)		(205	)
Class C		(172	)		(131	)
		(1,060	)		(873	)
From net realized gains:
Class A		(1,609	)		(898	)
Class B		(830	)		(564	)
Class C		(566	)		(319	)
		(3,005	)		(1,781	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		1,496			2,339
Class B		511			1,826
Class C		374			1,172
		2,381			5,337
Dividends and distributions reinvested:
Class A		2,069			1,403
Class B		909			725
Class C		669			437
		3,647			2,565
Cost of shares redeemed:
Class A		(8,353	)		(8,665	)
Class B		(4,161	)		(4,679	)
Class C		(2,846	)		(2,140	)
		(15,360	)		(15,484	)
Redemption fee:
Class B		1			—
		1			—
Automatic conversions:
Class A		3,193			2,221
Class B		(3,193	)		(2,221	)
		—			—
Net decrease in net assets resulting from capital shares transactions		(9,331	)		(7,582	)
Net Decrease in net assets		(30,754	)		(2,720	)
Net Assets:
Beginning of year	$	61,667		$	64,387
End of year	$	30,913		$	61,667
Undistributed Net Investment Income	$	349		$	260

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

83

	Transamerica Value
	Balanced
	Year Ended			Year Ended
	October 31,			October 31,
	2008			2007
Share Activity:
Shares issued:
Class A		112			171
Class B		39			134
Class C		29			87
		180			392
Shares issued-reinvested from distributions:
Class A		176			106
Class B		74			55
Class C		56			33
		306			194
Shares redeemed:
Class A		(713	)		(636	)
Class B		(351	)		(344	)
Class C		(243	)		(158	)
		(1,307	)		(1,138	)
Automatic conversions:
Class A		261			162
Class B		(262	)		(163	)
		(1	)		(1	)
Net decrease in shares outstanding:
Class A		(164	)		(197	)
Class B		(500	)		(318	)
Class C		(158	)		(38	)
		(822	)		(553	)

(a)	Net realized and unrealized gain (loss) includes Investment Securities, Futures Contracts, Written Options and Swaptions, Swaps and Foreign Currency Transactions.
(b)	Change in unrealized appreciation (depreciation) includes Investment Securities, Futures Contracts, Written Options and Swaptions, Swaps and Foreign Currency Translation.

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

84

FINANCIAL HIGHLIGHTS
For the years ended;

	Transamerica Balanced
	Class A
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	25.70		$	22.05		$	19.90		$	18.53		$	17.43
Investment Operations
Net investment income(a)		0.28			0.17			0.12			0.15			0.14
Net realized and unrealized gain (loss) on investments		(8.64	)		3.62			2.12			1.41			1.08
Total from investment operations		(8.36	)		3.79			2.24			1.56			1.22
Distributions
Net investment income		(0.24	)		(0.14	)		(0.09	)		(0.19	)		(0.12	)
Net realized gains on investments		(0.66	)		—			—			—			—
Total distributions		(0.90	)		(0.14	)		(0.09	)		(0.19	)		(0.12	)
Net Asset Value
End of year	$	16.44		$	25.70		$	22.05		$	19.90		$	18.53
Total Return(b)		(33.55	)%		17.28	%		11.27	%		8.41	%		7.03	%
Net Assets End of Year	$	49,917		$	61,565		$	55,547		$	62,440		$	72,997
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.52	%		1.56	%		1.58	%		1.59	%		1.70	%
Before reimbursement/fee waiver		1.52	%		1.56	%		1.58	%		1.59	%		1.70	%
Net investment income, to average net assets(c)		1.27	%		0.73	%		0.57	%		0.75	%		0.76	%
Portfolio turnover rate		52	%		52	%		51	%		27	%		107	%

	Transamerica Balanced
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	25.58		$	21.98		$	19.88		$	18.47		$	17.39
Investment Operations
Net investment income(a)		0.13			0.04			—	(d)		0.04			0.04
Net realized and unrealized gain (loss) on investments		(8.58	)		3.60			2.12			1.40			1.08
Total from investment operations		(8.45	)		3.64			2.12			1.44			1.12
Distributions
Net investment income		(0.10	)		(0.04	)		(0.02	)		(0.03	)		(0.04	)
Net realized gains on investments		(0.66	)		—			—			—			—
Total distributions		(0.76	)		(0.04	)		(0.02	)		(0.03	)		(0.04	)
Net Asset Value
End of year	$	16.37		$	25.58		$	21.98		$	19.88		$	18.47
Total Return(b)		(33.95	)%		16.57	%		10.65	%		7.80	%		6.44	%
Net Assets End of Year	$	32,469		$	96,573		$	118,286		$	142,479		$	170,630
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.15	%		2.14	%		2.15	%		2.14	%		2.26	%
Before reimbursement/fee waiver		2.15	%		2.14	%		2.15	%		2.14	%		2.26	%
Net investment income, to average net assets(c)		0.59	%		0.15	%		0.01	%		0.20	%		0.19	%
Portfolio turnover rate		52	%		52	%		51	%		27	%		107	%

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

85

	Transamerica Balanced
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	25.50		$	21.91		$	19.82		$	18.45		$	17.39
Investment Operations
Net investment income (loss)(a)		0.15			0.04			0.01			0.04			(0.01	)
Net realized and unrealized gain (loss) on investments		(8.56	)		3.59			2.10			1.41			1.11
Total from investment operations		(8.41	)		3.63			2.11			1.45			1.10
Distributions
Net investment income		(0.13	)		(0.04	)		(0.02	)		(0.08	)		(0.04	)
Net realized gains on investments		(0.66	)		—			—			—			—
Total distributions		(0.79	)		(0.04	)		(0.02	)		(0.08	)		(0.04	)
Net Asset Value
End of year	$	16.30		$	25.50		$	21.91		$	19.82		$	18.45
Total Return(b)		(33.92	)%		16.61	%		10.64	%		7.85	%		6.33	%
Net Assets End of Year	$	17,719		$	32,569		$	36,750		$	43,276		$	53,990
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.08	%		2.11	%		2.12	%		2.13	%		2.28	%
Before reimbursement/fee waiver		2.08	%		2.11	%		2.12	%		2.13	%		2.28	%
Net investment income (loss), to average net assets(c)		0.69	%		0.18	%		0.03	%		0.21	%		(0.08	)%
Portfolio turnover rate		52	%		52	%		51	%		27	%		107	%

	Transamerica Convertible Securities
	Class A
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	15.30		$	12.76		$	11.56		$	11.00		$	11.32
Investment Operations
Net investment income(a)		0.13			0.10			0.07			0.20			0.21
Net realized and unrealized gain (loss) on investments		(4.92	)		3.22			1.33			0.81			0.56
Total from investment operations		(4.79	)		3.32			1.40			1.01			0.77
Distributions
Net investment income		(0.10	)		(0.11	)		(0.07	)		(0.20	)		(0.22	)
Net realized gains on investments		(3.23	)		(0.67	)		(0.13	)		(0.25	)		(0.87	)
Total distributions		(3.33	)		(0.78	)		(0.20	)		(0.45	)		(1.09	)
Net Asset Value
End of year	$	7.18		$	15.30		$	12.76		$	11.56		$	11.00
Total Return(b)		(38.92	)%		27.41	%		12.15	%		9.24	%		7.06	%
Net Assets End of Year	$	10,748		$	11,276		$	6,350		$	209,374		$	188,049
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.33	%		1.33	%		1.25	%		1.17	%		1.20	%
Before reimbursement/fee waiver		1.33	%		1.33	%		1.25	%		1.17	%		1.20	%
Net investment income, to average net assets(c)		1.23	%		0.75	%		0.59	%		1.74	%		1.83	%
Portfolio turnover rate		91	%		92	%		69	%		87	%		157	%

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

86

	Transamerica Convertible Securities
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	15.22		$	12.71		$	11.54		$	11.00		$	11.31
Investment Operations
Net investment income(a)		0.04			0.01			—	(d)		0.09			0.14
Net realized and unrealized gain (loss) on investments		(4.87	)		3.21			1.32			0.80			0.57
Total from investment operations		(4.83	)		3.22			1.32			0.89			0.71
Distributions
Net investment income		(0.03	)		(0.04	)		(0.02	)		(0.10	)		(0.15	)
Net realized gains on investments		(3.23	)		(0.67	)		(0.13	)		(0.25	)		(0.87	)
Total distributions		(3.26	)		(0.71	)		(0.15	)		(0.35	)		(1.02	)
Net Asset Value
End of year	$	7.13		$	15.22		$	12.71		$	11.54		$	11.00
Total Return(b)		(39.32	)%		26.54	%		11.47	%		8.09	%		6.52	%
Net Assets End of Year	$	2,920		$	6,533		$	6,651		$	6,656		$	6,379
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.02	%		1.99	%		1.99	%		2.15	%		1.79	%
Before reimbursement/fee waiver		2.02	%		1.99	%		1.99	%		2.15	%		1.79	%
Net investment income, to average net assets(c)		0.40	%		0.10	%		—	%(e)		0.76	%		1.24	%
Portfolio turnover rate		91	%		92	%		69	%		87	%		157	%

	Transamerica Convertible Securities
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	15.17		$	12.66		$	11.50		$	10.97		$	11.31
Investment Operations
Net investment income(a)		0.07			0.02			—	(d)		0.08			0.11
Net realized and unrealized gain (loss) on investments		(4.87	)		3.20			1.31			0.82			0.57
Total from investment operations		(4.80	)		3.22			1.31			0.90			0.68
Distributions
Net investment income		(0.04	)		(0.04	)		(0.02	)		(0.12	)		(0.15	)
Net realized gains on investments		(3.23	)		(0.67	)		(0.13	)		(0.25	)		(0.87	)
Total distributions		(3.27	)		(0.71	)		(0.15	)		(0.37	)		(1.02	)
Net Asset Value
End of year	$	7.10		$	15.17		$	12.66		$	11.50		$	10.97
Total Return(b)		(39.24	)%		26.69	%		11.44	%		8.17	%		6.33	%
Net Assets End of Year	$	7,070		$	3,598		$	3,551		$	4,465		$	5,204
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.94	%		1.94	%		1.94	%		2.16	%		2.05	%
Before reimbursement/fee waiver		1.94	%		1.94	%		1.94	%		2.16	%		2.05	%
Net investment income, to average net assets(c)		0.72	%		0.15	%		0.02	%		0.73	%		0.98	%
Portfolio turnover rate		91	%		92	%		69	%		87	%		157	%

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

87

	Transamerica Convertible Securities
	Class I
	October 31,			October 31,			October 31,
	2008			2007			2006(f)
Net Asset Value
Beginning of year	$	15.31		$	12.76		$	11.71
Investment Operations
Net investment income(a)		0.18			0.16			0.14
Net realized and unrealized gain (loss) on investments		(4.92	)		3.23			1.17
Total from investment operations		(4.74	)		3.39			1.31
Distributions
Net investment income		(0.15	)		(0.17	)		(0.13	)
Net realized gains on investments		(3.23	)		(0.67	)		(0.13	)
Total distributions		(3.38	)		(0.84	)		(0.26	)
Net Asset Value
End of year	$	7.19		$	15.31		$	12.76
Total Return(b)		(38.58	)%		28.10	%		11.26%	(g)
Net Assets End of Year	$	91,679		$	148,562		$	256,474
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.84	%		0.82	%		0.82	%(h)
Before reimbursement/fee waiver		0.84	%		0.82	%		0.82	%(h)
Net investment income, to average net assets(c)		1.65	%		1.24	%		1.20	%(h)
Portfolio turnover rate		91	%		92	%		69	%(g)

	Transamerica Equity
	Class A
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	12.07		$	9.83		$	8.87		$	7.44		$	6.86
Investment Operations
Net investment loss(a)		(0.01	)		(0.05	)		(0.07	)		(0.02	)		(0.07	)
Net realized and unrealized gain (loss) on investments		(5.21	)		2.29			1.11			1.58			0.65
Total from investment operations		(5.22	)		2.24			1.04			1.56			0.58
Distributions
Net realized gains on investments		—			—			(0.08	)		(0.13	)		—
Total distributions		—			—			(0.08	)		(0.13	)		—
Net Asset Value
End of year	$	6.85		$	12.07		$	9.83		$	8.87		$	7.44
Total Return(b)		(43.25)	%		22.79	%		11.71	%		21.16	%		8.45	%
Net Assets End of Year	$	300,140		$	532,251		$	500,483		$	301,635		$	176,851
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.39	%		1.40	%		1.51	%		1.36	%		1.50	%
Before reimbursement/fee waiver		1.39	%		1.40	%		1.51	%		1.36	%		1.50	%
Net investment loss, to average net assets(c)		(0.07	)%		(0.48	)%		(0.70	)%		(0.27	)%		(0.90	)%
Portfolio turnover rate		33	%		62	%		19	%		39	%		97	%

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

88

	Transamerica Equity
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	11.39		$	9.35		$	8.49		$	7.19		$	6.68
Investment Operations
Net investment loss(a)		(0.08	)		(0.12	)		(0.12	)		(0.08	)		(0.11	)
Net realized and unrealized gain (loss) on investments		(4.89	)		2.16			1.06			1.51			0.62
Total from investment operations		(4.97	)		2.04			0.94			1.43			0.51
Distributions
Net realized gains on investments		—			—			(0.08	)		(0.13	)		—
Total distributions		—			—			(0.08	)		(0.13	)		—
Net Asset Value
End of year	$	6.42		$	11.39		$	9.35		$	8.49		$	7.19
Total Return(b)		(43.63	)%		21.82	%		11.06	%		20.03	%		7.68	%
Net Assets End of Year	$	59,479		$	191,007		$	222,144		$	49,865		$	47,928
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.17	%		2.17	%		2.17	%		2.18	%		2.20	%
Before reimbursement/fee waiver		2.21	%		2.21	%		2.34	%		2.61	%		2.72	%
Net investment loss, to average net assets(c)		(0.87	)%		(1.25	)%		(1.34	)%		(0.99	)%		(1.62	)%
Portfolio turnover rate		33	%		62	%		19	%		39	%		97	%

	Transamerica Equity
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	11.42		$	9.37		$	8.50		$	7.20		$	6.68
Investment Operations
Net investment loss(a)		(0.07	)		(0.11	)		(0.12	)		(0.08	)		(0.11	)
Net realized and unrealized gain (loss) on investments		(4.91	)		2.16			1.07			1.51			0.63
Total from investment operations		(4.98	)		2.05			0.95			1.43			0.52
Distributions
Net realized gains on investments		—			—			(0.08	)		(0.13	)		—
Total distributions		—			—			(0.08	)		(0.13	)		—
Net Asset Value
End of year	$	6.44		$	11.42		$	9.37		$	8.50		$	7.20
Total Return(b)		(43.61	)%		21.88	%		11.16	%		20.05	%		7.78	%
Net Assets End of Year	$	46,676		$	101,226		$	97,047		$	23,656		$	21,808
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.04	%		2.07	%		2.10	%		2.18	%		2.20	%
Before reimbursement/fee waiver		2.04	%		2.07	%		2.10	%		2.31	%		2.55	%
Net investment loss, to average net assets(c)		(0.72	)%		(1.15	)%		(1.27	)%		(1.00	)%		(1.63	)%
Portfolio turnover rate		33	%		62	%		19	%		39	%		97	%

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

89

	Transamerica Equity
	Class I
	October 31,			October 31,			October 31,
	2008			2007			2006(f)
Net Asset Value
Beginning of year	$	12.23		$	9.90		$	9.17
Investment Operations
Net investment income(a)		0.06			0.01			—	(d)
Net realized and unrealized gain (loss) on investments		(5.30	)		2.32			0.81
Total from investment operations		(5.24	)		2.33			0.81
Distributions
Net realized gains on investments		—			—			(0.08	)
Total distributions		—			—			(0.08	)
Net Asset Value
End of year	$	6.99		$	12.23		$	9.90
Total Return(b)		(42.85)	%		23.54	%		8.83%	(g)
Net Assets End of Year	$	500,722		$	888,019		$	714,803
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.75	%		0.78	%		0.81	%(h)
Before reimbursement/fee waiver		0.75	%		0.78	%		0.81	%(h)
Net investment income, to average net assets(c)		0.55	%		0.13	%		0.02	%(h)
Portfolio turnover rate		33	%		62	%		19	%(g)

	Transamerica Equity
	Class T
	October 31,			October 31,			October 31,
	2008			2007			2006(i)
Net Asset Value
Beginning of year	$	33.53		$	27.18		$	27.10
Investment Operations
Net investment income(a)		0.12			—			—	(d)
Net realized and unrealized gain (loss) on investments		(14.51	)		6.35			0.08
Total from investment operations		(14.39	)		6.35			0.08
Net Asset Value
End of year	$	19.14		$	33.53		$	27.18
Total Return(b)		(42.92)	%		23.36	%		0.30	%(g)
Net Assets End of Year	$	90,881		$	183,495		$	195,420
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.89	%		0.91	%		0.84	%(h)
Before reimbursement/fee waiver		0.89	%		0.91	%		0.84	%(h)
Net investment income (loss), to average net assets(c)		0.42	%		0.01	%		(0.21	)%(h)
Portfolio turnover rate		33	%		62	%		19	%(g)

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

90

	Transamerica Flexible Income
	Class A
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	9.14		$	9.38		$	9.31		$	9.68		$	10.21
Investment Operations
Net investment income(a)		0.44			0.48			0.43			0.37			0.38
Net realized and unrealized gain (loss) on investments		(1.89	)		(0.25	)		0.05			(0.32	)		0.14
Total from investment operations		(1.45	)		0.23			0.48			0.05			0.52
Distributions
Net investment income		(0.47	)		(0.47	)		(0.41	)		(0.38	)		(0.38	)
Net realized gains on investments		—			—			—			—			(0.63	)
Return of capital		—			—			—			(0.04	)		(0.04	)
Total distributions		(0.47	)		(0.47	)		(0.41	)		(0.42	)		(1.05	)
Net Asset Value
End of year	$	7.22		$	9.14		$	9.38		$	9.31		$	9.68
Total Return(b)		(16.57	)%		2.42	%		5.34	%		0.47	%		5.72	%
Net Assets End of Year	$	13,360		$	15,409		$	17,005		$	140,203		$	80,201
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.39	%		1.40	%		1.47	%		1.25	%		1.43	%
Before reimbursement/fee waiver		1.39	%		1.40	%		1.47	%		1.25	%		1.43	%
Net investment income, to average net assets(c)		5.12	%		5.12	%		4.64	%		3.85	%		3.89	%
Portfolio turnover rate		98	%		108	%		110	%		58	%		169	%

	Transamerica Flexible Income
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	9.14		$	9.39		$	9.32		$	9.68		$	10.20
Investment Operations
Net investment income(a)		0.38			0.42			0.38			0.29			0.32
Net realized and unrealized gain (loss) on investments		(1.88	)		(0.26	)		0.06			(0.32	)		0.15
Total from investment operations		(1.50	)		0.16			0.44			(0.03	)		0.47
Distributions
Net investment income		(0.41	)		(0.41	)		(0.37	)		(0.29	)		(0.32	)
Net realized gains on investments		—			—			—			—			(0.63	)
Return of capital		—			—			—			(0.04	)		(0.04	)
Total distributions		(0.41	)		(0.41	)		(0.37	)		(0.33	)		(0.99	)
Net Asset Value
End of year	$	7.23		$	9.14		$	9.39		$	9.32		$	9.68
Total Return(b)		(17.03	)%		1.66	%		4.81	%		(0.36	)%		5.13	%
Net Assets End of Year	$	8,628		$	17,007		$	23,501		$	32,560		$	45,338
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.05	%		2.04	%		2.08	%		2.08	%		2.03	%
Before reimbursement/fee waiver		2.05	%		2.04	%		2.08	%		2.08	%		2.03	%
Net investment income, to average net assets(c)		4.42	%		4.48	%		4.08	%		3.02	%		3.25	%
Portfolio turnover rate		98	%		108	%		110	%		58	%		169	%

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

91

	Transamerica Flexible Income
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	9.12		$	9.36		$	9.30		$	9.67		$	10.20
Investment Operations
Net investment income(a)		0.39			0.42			0.39			0.29			0.33
Net realized and unrealized gain (loss) on investments		(1.88	)		(0.25	)		0.04			(0.33	)		0.13
Total from investment operations		(1.49	)		0.17			0.43			(0.04	)		0.46
Distributions
Net investment income		(0.42	)		(0.41	)		(0.37	)		(0.29	)		(0.32	)
Net realized gains on investments		—			—			—			—			(0.63	)
Return of capital		—			—			—			(0.04	)		(0.04	)
Total distributions		(0.42	)		(0.41	)		(0.37	)		(0.33	)		(0.99	)
Net Asset Value
End of year	$	7.21		$	9.12		$	9.36		$	9.30		$	9.67
Total Return(b)		(16.98	)%		1.81	%		4.74	%		(0.40	)%		5.02	%
Net Assets End of Year	$	5,981		$	8,982		$	12,519		$	13,439		$	19,675
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.97	%		2.00	%		2.07	%		2.11	%		2.10	%
Before reimbursement/fee waiver		1.97	%		2.00	%		2.07	%		2.11	%		2.10	%
Net investment income, to average net assets(c)		4.52	%		4.51	%		4.15	%		2.99	%		3.37	%
Portfolio turnover rate		98	%		108	%		110	%		58	%		169	%

	Transamerica Flexible Income
	Class I
	October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005(j)
Net Asset Value
Beginning of year	$	9.17		$	9.42		$	9.35		$	9.68
Investment Operations
Net investment income(a)		0.50			0.53			0.50			0.40
Net realized and unrealized gain (loss) on investments		(1.90	)		(0.26	)		0.05			(0.32	)
Total from investment operations		(1.40	)		0.27			0.55			0.08
Distributions
Net investment income		(0.52	)		(0.52	)		(0.48	)		(0.37	)
Net realized gains on investments		—			—			—			(0.04	)
Total distributions		(0.52	)		(0.52	)		(0.48	)		(0.41	)
Net Asset Value
End of year	$	7.25		$	9.17		$	9.42		$	9.35
Total Return(b)		(16.02	)%		2.93	%		6.04	%		0.85	%(g)
Net Assets End of Year	$	128,108		$	370,611		$	221,116		$	110,709
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.77	%		0.80	%		0.86	%		0.85	%(h)
Before reimbursement/fee waiver		0.77	%		0.80	%		0.86	%		0.85	%(h)
Net investment income, to average net assets(c)		5.67	%		5.71	%		5.35	%		4.25	%(h)
Portfolio turnover rate		98	%		108	%		110	%		58	%(g)

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

92

	Transamerica Growth Opportunities
	Class A
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	11.40		$	8.36		$	7.85		$	6.61		$	5.95
Investment Operations
Net investment loss(a)		(0.06	)		(0.09	)		(0.07	)		(0.02	)		(0.03	)
Net realized and unrealized gain (loss) on investments		(4.77	)		3.13			0.58			1.26			0.69
Total from investment operations		(4.83	)		3.04			0.51			1.24			0.66
Net Asset Value
End of year	$	6.57		$	11.40		$	8.36		$	7.85		$	6.61
Total Return(b)		(42.37	)%		36.20	%		6.62	%		18.76	%		11.09	%
Net Assets End of Year	$	41,005		$	64,825		$	56,588		$	256,559		$	230,633
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.75	%		1.75	%		1.72	%		1.41	%		1.43	%
Before reimbursement/fee waiver		1.81	%		1.77	%		1.72	%		1.41	%		1.43	%
Net investment loss, to average net assets(c)		(0.69	)%		(1.00	)%		(0.89	)%		(0.30	)%		(0.47	)%
Portfolio turnover rate		45	%		85	%		59	%		34	%		43	%

	Transamerica Growth Opportunities
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	10.72		$	7.92		$	7.48		$	6.37		$	5.79
Investment Operations
Net investment loss(a)		(0.12	)		(0.14	)		(0.13	)		(0.09	)		(0.09	)
Net realized and unrealized gain (loss) on investments		(4.47	)		2.94			0.57			1.20			0.67
Total from investment operations		(4.59	)		2.80			0.44			1.11			0.58
Net Asset Value
End of year	$	6.13		$	10.72		$	7.92		$	7.48		$	6.37
Total Return(b)		(42.82	)%		35.35	%		5.88	%		17.43	%		10.02	%
Net Assets End of Year	$	20,823		$	65,123		$	66,098		$	74,589		$	77,869
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.40	%		2.40	%		2.40	%		2.40	%		2.40	%
Before reimbursement/fee waiver		2.46	%		2.45	%		2.46	%		2.61	%		2.64	%
Net investment loss, to average net assets(c)		(1.39	)%		(1.66	)%		(1.57	)%		(1.29	)%		(1.44	)%
Portfolio turnover rate		45	%		85	%		59	%		34	%		43	%

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

93

	Transamerica Growth Opportunities
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	10.74		$	7.94		$	7.49		$	6.38		$	5.79
Investment Operations
Net investment loss(a)		(0.11	)		(0.14	)		(0.12	)		(0.09	)		(0.10	)
Net realized and unrealized gain (loss) on investments		(4.47	)		2.94			0.57			1.20			0.69
Total from investment operations		(4.58	)		2.80			0.45			1.11			0.59
Net Asset Value
End of year	$	6.16		$	10.74		$	7.94		$	7.49		$	6.38
Total Return(b)		(42.64	)%		35.26	%		6.01	%		17.40	%		10.19	%
Net Assets End of Year	$	10,619		$	22,656		$	21,688		$	25,432		$	28,103
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.34	%		2.36	%		2.38	%		2.40	%		2.40	%
Before reimbursement/fee waiver		2.34	%		2.36	%		2.38	%		2.54	%		2.65	%
Net investment loss, to average net assets(c)		(1.29	)%		(1.61	)%		(1.54	)%		(1.29	)%		(1.58	)%
Portfolio turnover rate		45	%		85	%		59	%		34	%		43	%

	Transamerica Growth Opportunities
	Class I
	October 31,			October 31,			October 31,
	2008			2007			2006(f)
Net Asset Value
Beginning of year	$	11.59		$	8.43		$	7.99
Investment Operations
Net investment income (loss)(a)		0.01			(0.01	)		—	(d)
Net realized and unrealized gain (loss) on investments		(4.86	)		3.17			0.44
Total from investment operations		(4.85	)		3.16			0.44
Net Asset Value
End of year	$	6.74		$	11.59		$	8.43
Total Return(b)		(41.85	)%		37.49	%		5.51	%(g)
Net Assets End of Year	$	86,425		$	206,863		$	214,775
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.86	%		0.88	%		0.88%	(h)
Before reimbursement/fee waiver		0.86	%		0.88	%		0.88%	(h)
Net investment income (loss), to average net assets(c)		0.15	%		(0.15	)%		(0.06%	(h)
Portfolio turnover rate		45	%		85	%		59%	(g)

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

94

	Transamerica High Yield Bond
	Class A
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	9.12		$	9.19		$	8.97		$	9.37		$	9.08
Investment Operations
Net investment income(a)		0.64			0.60			0.61			0.56			0.52
Net realized and unrealized gain (loss) on investments		(2.83	)		(0.07	)		0.19			(0.37	)		0.29
Total from investment operations		(2.19	)		0.53			0.80			0.19			0.81
Distributions
Net investment income		(0.62	)		(0.60	)		(0.58	)		(0.59	)		(0.52	)
Total distributions		(0.62	)		(0.60	)		(0.58	)		(0.59	)		(0.52	)
Net Asset Value
End of year	$	6.31		$	9.12		$	9.19		$	8.97		$	9.37
Total Return(b)		(25.46	)%		5.90	%		9.27	%		2.06	%		9.23	%
Net Assets End of Year	$	24,506		$	35,147		$	43,514		$	336,340		$	309,223
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.16	%		1.15	%		1.16	%		1.05	%		1.08	%
Before reimbursement/fee waiver		1.16	%		1.15	%		1.16	%		1.05	%		1.08	%
Net investment income, to average net assets(c)		7.65	%		6.45	%		6.77	%		6.04	%		5.67	%
Portfolio turnover rate		38	%		80	%		73	%		71	%		49	%

	Transamerica High Yield Bond
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	9.11		$	9.18		$	8.97		$	9.37		$	9.08
Investment Operations
Net investment income(a)		0.58			0.53			0.55			0.48			0.46
Net realized and unrealized gain (loss) on investments		(2.83	)		(0.06	)		0.19			(0.37	)		0.29
Total from investment operations		(2.25	)		0.47			0.74			0.11			0.75
Distributions
Net investment income		(0.56	)		(0.54	)		(0.53	)		(0.51	)		(0.46	)
Total distributions		(0.56	)		(0.54	)		(0.53	)		(0.51	)		(0.46	)
Net Asset Value
End of year	$	6.30		$	9.11		$	9.18		$	8.97		$	9.37
Total Return(b)		(26.04	)%		5.19	%		8.53	%		1.21	%		8.52	%
Net Assets End of Year	$	9,091		$	21,370		$	27,753		$	37,006		$	49,422
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.85	%		1.83	%		1.83	%		1.85	%		1.72	%
Before reimbursement/fee waiver		1.85	%		1.83	%		1.83	%		1.85	%		1.72	%
Net investment income, to average net assets(c)		6.83	%		5.77	%		6.12	%		5.18	%		5.05	%
Portfolio turnover rate		38	%		80	%		73	%		71	%		49	%

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

95

	Transamerica High Yield Bond
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	9.10		$	9.17		$	8.96		$	9.36		$	9.08
Investment Operations
Net investment income(a)		0.58			0.53			0.55			0.47			0.46
Net realized and unrealized gain (loss) on investments		(2.82	)		(0.06	)		0.19			(0.36	)		0.28
Total from investment operations		(2.24	)		0.47			0.74			0.11			0.74
Distributions
Net investment income		(0.56	)		(0.54	)		(0.53	)		(0.51	)		(0.46	)
Total distributions		(0.56	)		(0.54	)		(0.53	)		(0.51	)		(0.46	)
Net Asset Value
End of year	$	6.30		$	9.10		$	9.17		$	8.96		$	9.36
Total Return(b)		(25.89	)%		5.21	%		8.54	%		1.21	%		8.41	%
Net Assets End of Year	$	5,429		$	10,160		$	11,317		$	15,880		$	25,379
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.80	%		1.83	%		1.83	%		1.88	%		1.78	%
Before reimbursement/fee waiver		1.80	%		1.83	%		1.83	%		1.88	%		1.78	%
Net investment income, to average net assets(c)		6.93	%		5.77	%		6.12	%		5.11	%		4.95	%
Portfolio turnover rate		38	%		80	%		73	%		71	%		49	%

	Transamerica High Yield Bond
	Class I
	October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005(j)
Net Asset Value
Beginning of year	$	9.17		$	9.24		$	9.02		$	9.39
Investment Operations
Net investment income(a)		0.69			0.65			0.67			0.59
Net realized and unrealized gain (loss) on investments		(2.85	)		(0.07	)		0.18			(0.37	)
Total from investment operations		(2.16	)		0.58			0.85			0.22
Distributions
Net investment income		(0.66	)		(0.65	)		(0.63	)		(0.59	)
Total distributions		(0.66	)		(0.65	)		(0.63	)		(0.59	)
Net Asset Value
End of year	$	6.35		$	9.17		$	9.24		$	9.02
Total Return(b)		(25.05	)%		6.39	%		9.81	%		2.33	%(g)
Net Assets End of Year	$	418,923		$	331,300		$	315,252		$	40,860
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.65	%		0.65	%		0.66	%		0.66	%(h)
Before reimbursement/fee waiver		0.65	%		0.65	%		0.66	%		0.66	%(h)
Net investment income, to average net assets(c)		8.34	%		6.96	%		7.29	%		6.60	%(h)
Portfolio turnover rate		38	%		80	%		73	%		71	%(g)

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

96

	Transamerica Legg Mason Partners All Cap
	Class A
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	17.08		$	18.18		$	16.10		$	14.80		$	13.95
Investment Operations
Net investment income (loss)(a)		0.12			0.07			0.09			0.06			(0.03	)
Net realized and unrealized gain (loss) on investments		(5.73	)		1.49			2.55			1.24			0.88
Total from investment operations		(5.61	)		1.56			2.64			1.30			0.85
Distributions
Net investment income		—			(0.06	)		(0.01	)		—	(d)		—
Net realized gains on investments		(1.49	)		(2.60	)		(0.55	)		—			—
Total distributions		(1.49	)		(2.66	)		(0.56	)		—	(d)		—
Net Asset Value
End of year	$	9.98		$	17.08		$	18.18		$	16.10		$	14.80
Total Return(b)		(35.81	)%		9.27	%		16.74	%		8.79	%		6.09	%
Net Assets End of Year	$	28,237		$	49,938		$	55,622		$	173,929		$	438,047
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.55	%		1.55	%		1.55	%		1.32	%		1.33	%
Before reimbursement/fee waiver		1.59	%		1.56	%		1.57	%		1.32	%		1.33	%
Net investment income (loss), to average net assets(c)		0.85	%		0.42	%		0.52	%		0.36	%		(0.17	)%
Portfolio turnover rate		27	%		17	%		25	%		27	%		25	%

	Transamerica Legg Mason Partners All Cap
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	16.01		$	17.24		$	15.39		$	14.27		$	13.53
Investment Operations
Net investment income (loss)(a)		0.02			(0.03	)		(0.03	)		(0.09	)		(0.11	)
Net realized and unrealized gain (loss) on investments		(5.30	)		1.40			2.43			1.21			0.85
Total from investment operations		(5.28	)		1.37			2.40			1.12			0.74
Distributions
Net investment income		—			—			—	(d)		—			—
Net realized gains on investments		(1.49	)		(2.60	)		(0.55	)		—			—
Total distributions		(1.49	)		(2.60	)		(0.55	)		—			—
Net Asset Value
End of year	$	9.24		$	16.01		$	17.24		$	15.39		$	14.27
Total Return(b)		(36.18	)%		8.57	%		15.97	%		7.84	%		5.48	%
Net Assets End of Year	$	33,670		$	88,268		$	109,567		$	123,494		$	150,829
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%		2.19	%		2.20	%		2.19	%		1.97	%
Before reimbursement/fee waiver		2.24	%		2.19	%		2.21	%		2.19	%		1.97	%
Net investment income (loss), to average net assets(c)		0.20	%		(0.22	)%		(0.17	)%		(0.58	)%		(0.80	)%
Portfolio turnover rate		27	%		17	%		25	%		27	%		25	%

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

97

	Transamerica Legg Mason Partners All Cap
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	16.04		$	17.25		$	15.39		$	14.26		$	13.53
Investment Operations
Net investment income (loss)(a)		0.03			(0.02	)		(0.02	)		(0.08	)		(0.12	)
Net realized and unrealized gain (loss) on investments		(5.32	)		1.41			2.43			1.21			0.85
Total from investment operations		(5.29	)		1.39			2.41			1.13			0.73
Distributions
Net investment income		—			—			—	(d)		—			—
Net realized gains on investments		(1.49	)		(2.60	)		(0.55	)		—			—
Total distributions		(1.49	)		(2.60	)		(0.55	)		—			—
Net Asset Value
End of year	$	9.26		$	16.04		$	17.25		$	15.39		$	14.26
Total Return(b)		(36.17	)%		8.70	%		16.04	%		7.89	%		5.43	%
Net Assets End of Year	$	15,316		$	35,568		$	41,340		$	49,909		$	65,391
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.15	%		2.13	%		2.15	%		2.15	%		1.99	%
Before reimbursement/fee waiver		2.15	%		2.13	%		2.15	%		2.15	%		1.99	%
Net investment income (loss), to average net assets(c)		0.26	%		(0.15	)%		(0.12	)%		(0.53	)%		(0.83	)%
Portfolio turnover rate		27	%		17	%		25	%		27	%		25	%

	Transamerica Money Market
	Class A
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Investment Operations
Net investment income(a)		0.02			0.05			0.04			0.02			—	(d)
Net realized and unrealized gain on investments		—	(d)		—			—			—			—
Total from investment operations		0.02			0.05			0.04			0.02			—	(d)
Distributions
Net investment income		(0.02	)		(0.05	)		(0.04	)		(0.02	)		—	(d)
Net realized gains on investments		—			—	(d)		—			—			—
Total distributions		(0.02	)		(0.05	)		(0.04	)		(0.02	)		—	(d)
Net Asset Value
End of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return(b)		2.52	%		4.61	%		4.09	%		2.10	%		0.42	%
Net Assets End of Year	$	142,456		$	95,766		$	78,716		$	150,804		$	185,311
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.83	%		0.83	%		0.83	%		0.83	%		0.83	%
Before reimbursement/fee waiver		1.08	%		1.20	%		1.23	%		1.05	%		1.19	%
Net investment income, to average net assets(c)		2.40	%		4.54	%		3.98	%		2.08	%		0.45	%

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

98

	Transamerica Money Market
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Investment Operations
Net investment income(a)		0.02			0.04			0.03			0.02			—	(d)
Net realized and unrealized gain on investments		—	(d)		—			—			—			—
Total from investment operations		0.02			0.04			0.03			0.02			—	(d)
Distributions
Net investment income		(0.02	)		(0.04	)		(0.03	)		(0.02	)		—	(d)
Net realized gains on investments		—			—	(d)		—			—			—
Total distributions		(0.02	)		(0.04	)		(0.03	)		(0.02	)		—	(d)
Net Asset Value
End of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return(b)		1.83	%		3.92	%		3.41	%		1.60	%		0.14	%
Net Assets End of Year	$	40,110		$	23,324		$	25,727		$	31,647		$	40,203
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.48	%		1.48	%		1.48	%		1.32	%		1.10	%
Before reimbursement/fee waiver		1.75	%		1.83	%		1.80	%		1.79	%		1.81	%
Net investment income, to average net assets(c)		1.75	%		3.87	%		3.50	%		1.57	%		0.13	%

	Transamerica Money Market
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Investment Operations
Net investment income(a)		0.02			0.04			0.03			0.02			—	(d)
Net realized and unrealized gain on investments		—	(d)		—			—			—			—
Total from investment operations		0.02			0.04			0.03			0.02			—	(d)
Distributions
Net investment income		(0.02	)		(0.04	)		(0.03	)		(0.02	)		—	(d)
Net realized gains on investments		—			—	(d)		—			—			—
Total distributions		(0.02	)		(0.04	)		(0.03	)		(0.02	)		—	(d)
Net Asset Value
End of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return(b)		1.86	%		3.92	%		3.16	%		1.87	%		0.14	%
Net Assets End of Year	$	59,991		$	19,638		$	17,286		$	15,997		$	22,277
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.48	%		1.48	%		1.48	%		1.26	%		0.98	%
Before reimbursement/fee waiver		1.67	%		1.73	%		1.82	%		1.89	%		1.96	%
Net investment income, to average net assets(c)		1.65	%		3.88	%		3.40	%		1.61	%		0.43	%

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

99

	Transamerica Money Market
	Class I
	October 31,			October 31,			October 31,
	2008			2007			2006 (f)
Net Asset Value
Beginning of year	$	1.00		$	1.00		$	1.00
Investment Operations
Net investment income(a)		0.03			0.05			0.04
Net realized and unrealized gain on investments		—	(d)		—			—
Total from investment operations		0.03			0.05			0.04
Distributions
Net investment income		(0.03	)		(0.05	)		(0.04	)
Net realized gains on investments		—			—	(d)		—
Total distributions		(0.03	)		(0.05	)		(0.04	)
Net Asset Value
End of year	$	1.00		$	1.00		$	1.00
Total Return(b)		2.84	%		4.98	%		4.30	%(g)
Net Assets End of Year	$	29,327		$	34,673		$	26,466
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.48	%		0.48	%		0.48	%(h)
Before reimbursement/fee waiver		0.49	%		0.52	%		0.51	%(h)
Net investment income, to average net assets(c)		2.89	%		4.88	%		4.39	%(h)

	Transamerica Science & Technology
	Class A
	October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			October 31, 2004
Net Asset Value
Beginning of year	$	5.67		$	3.91		$	3.82		$	3.80		$	3.61
Investment Operations
Net investment income (loss)(a)		(0.04	)		(0.05	)		(0.03	)		0.03			(0.04	)
Net realized and unrealized gain (loss) on investments		(2.61	)		1.81			0.18			0.02			0.23
Total from investment operations		(2.65	)		1.76			0.15			0.05			0.19
Distributions
Net investment income		—			—			—			(0.03	)		—
Net realized gains on investments		(0.18	)		—			(0.06	)		—			—
Total distributions		(0.18	)		—			(0.06	)		(0.03	)		—
Net Asset Value
End of year	$	2.84		$	5.67		$	3.91		$	3.82		$	3.80
Total Return(b)		(48.18	)%		45.01	%		3.78	%		1.23	%		5.26	%
Net Assets End of Year	$	3,778		$	7,874		$	5,616		$	65,423		$	119,985
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.53	%		1.53	%		1.53	%		1.32	%		1.36	%
Before reimbursement/fee waiver		1.70	%		1.77	%		1.67	%		1.32	%		1.36	%
Net investment income (loss), to average net assets(c)		(1.02	)%		(1.03	)%		(0.72	)%		0.63	%		(1.12	)%
Portfolio turnover rate		47	%		66	%		94	%		73	%		41	%

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

100

	Transamerica Science & Technology
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	5.40		$	3.74		$	3.68		$	3.68		$	3.51
Investment Operations
Net investment loss(a)		(0.07	)		(0.07	)		(0.06	)		(0.02	)		(0.06	)
Net realized and unrealized gain (loss) on investments		(2.47	)		1.73			0.18			0.02			0.23
Total from investment operations		(2.54	)		1.66			0.12			—			0.17
Distributions
Net realized gains on investments		(0.18	)		—			(0.06	)		—			—
Total distributions		(0.18	)		—			(0.06	)		—			—
Net Asset Value
End of year	$	2.68		$	5.40		$	3.74		$	3.68		$	3.68
Total Return(b)		(48.56	)%		44.39	%		3.10	%		—	(e)%		4.84	%
Net Assets End of Year	$	2,094		$	4,913		$	4,208		$	5,316		$	6,874
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.18	%		2.18	%		2.18	%		2.20	%		1.91	%
Before reimbursement/fee waiver		2.53	%		2.53	%		2.57	%		2.68	%		1.91	%
Net investment loss, to average net assets(c)		(1.67	)%		(1.67	)%		(1.58	)%		(0.58	)%		(1.68	)%
Portfolio turnover rate		47	%		66	%		94	%		73	%		41	%

	Transamerica Science & Technology
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	5.39		$	3.73		$	3.67		$	3.67		$	3.51
Investment Operations
Net investment loss(a)		(0.07	)		(0.07	)		(0.06	)		(0.02	)		(0.07	)
Net realized and unrealized gain (loss) on investments		(2.46	)		1.73			0.18			0.02			0.23
Total from investment operations		(2.53	)		1.66			0.12			—			0.16
Distributions
Net realized gains on investments		(0.18	)		—			(0.06	)		—			—
Total distributions		(0.18	)		—			(0.06	)		—			—
Net Asset Value
End of year	$	2.68		$	5.39		$	3.73		$	3.67		$	3.67
Total Return(b)		(48.46	)%		44.50	%		3.11	%		—	(e)%		4.56	%
Net Assets End of Year	$	1,417		$	2,799		$	2,045		$	2,779		$	4,089
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.18	%		2.18	%		2.18	%		2.20	%		2.20	%
Before reimbursement/fee waiver		2.31	%		2.36	%		2.35	%		2.65	%		2.60	%
Net investment loss, to average net assets(c)		(1.67	)%		(1.63	)%		(1.57	)%		(0.51	)%		(1.94	)%
Portfolio turnover rate		47	%		66	%		94	%		73	%		41	%

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

101

	Transamerica Science & Technology
	Class I
	October 31,			October 31,			October 31,
	2008			2007			2006(f)
Net Asset Value
Beginning of year	$	5.74		$	3.93		$	3.98
Investment Operations
Net investment loss(a)		(0.02	)		(0.02	)		(0.01	)
Net realized and unrealized gain (loss) on investments		(2.65	)		1.83			0.02
Total from investment operations		(2.67	)		1.81			0.01
Distributions
Net realized gains on investments		(0.18	)		—			(0.06	)
Total distributions		(0.18	)		—			(0.06	)
Net Asset Value
End of year	$	2.89		$	5.74		$	3.93
Total Return(b)		(47.93	)%		46.06	%		0.12	%(g)
Net Assets End of Year	$	46,222		$	84,206		$	57,642
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.91	%		0.92	%		0.92	%(h)
Before reimbursement/fee waiver		0.91	%		0.92	%		0.92	%(h)
Net investment loss, to average net assets(c)		(0.41	)%		(0.41	)%		(0.35	)%(h)
Portfolio turnover rate		47	%		66	%		94	%(g)

	Transamerica Short-Term
	Bond
	Class A			Class C
	October 31,			October 31,
	2008(k)			2008(k)
Net Asset Value
Beginning of year	$	10.00		$	10.00
Investment Operations
Net investment income(a)		0.38			0.32
Net realized and unrealized loss on investments		(0.54	)		(0.55	)
Total from investment operations		(0.16	)		(0.23	)
Distributions
Net investment income		(0.40	)		(0.35	)
Total distributions		(0.40	)		(0.35	)
Net Asset Value
End of year	$	9.44		$	9.42
Total Return(b)		(1.70	)%(g)		(2.43	)%(g)
Net Assets End of Year	$	5,663		$	7,263
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.11	%(h)		1.76	%(h)
Before reimbursement/fee waiver		1.11	%(h)		1.76	%(h)
Net investment income, to average net assets(c)		3.92	%(h)		3.28	%(h)
Portfolio turnover rate		67	%(g)		67	%(g)

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

102

	Transamerica Short-Term Bond
	Class I
	October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005(j)
Net Asset Value
Beginning of year	$	9.82		$	9.84		$	9.79		$	10.00
Investment Operations
Net investment income(a)		0.43			0.47			0.40			0.28
Net realized and unrealized gain (loss) on investments		(0.54	)		(0.04	)		0.05			(0.22	)
Total from investment operations		(0.11	)		0.43			0.45			0.06
Distributions
Net investment income		(0.43	)		(0.45	)		(0.40	)		(0.27	)
Total distributions		(0.43	)		(0.45	)		(0.40	)		(0.27	)
Net Asset Value
End of year	$	9.28		$	9.82		$	9.84		$	9.79
Total Return(b)		(1.22	)%		4.45	%		4.72	%		0.49	%(g)
Net Assets End of Year	$	492,333		$	563,889		$	379,442		$	174,302
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.68	%		0.67	%		0.70	%		0.71	%(h)
Before reimbursement/fee waiver		0.68	%		0.67	%		0.70	%		0.71	%(h)
Net investment income, to average net assets(c)		4.38	%		4.81	%		4.10	%		2.92	%(h)
Portfolio turnover rate		67	%		117	%		100	%		153	%(g)

	Transamerica Small/Mid Cap Value
	Class A
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	23.78		$	17.78		$	16.69		$	14.32		$	12.94
Investment Operations
Net investment income(a)		0.21			0.14			0.28			0.03			0.04
Net realized and unrealized gain (loss) on investments		(8.64	)		6.30			1.96			2.85			2.56
Total from investment operations		(8.43	)		6.44			2.24			2.88			2.60
Distributions
Net investment income		(0.16	)		(0.13	)		(0.03	)		(0.09	)		—
Net realized gains on investments		(2.49	)		(0.31	)		(1.12	)		(0.42	)		(1.22	)
Total distributions		(2.65	)		(0.44	)		(1.15	)		(0.51	)		(1.22	)
Net Asset Value
End of year	$	12.70		$	23.78		$	17.78		$	16.69		$	14.32
Total Return(b)		(39.47	)%		36.99	%		13.97	%		20.41	%		20.61	%
Net Assets End of Year	$	199,210		$	96,667		$	47,014		$	386,346		$	334,763
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.41	%		1.41	%		1.39	%		1.24	%		1.32	%
Before reimbursement/fee waiver		1.41	%		1.41	%		1.39	%		1.24	%		1.32	%
Net investment income, to average net assets(c)		1.18	%		0.71	%		1.61	%		0.20	%		0.31	%
Portfolio turnover rate		48	%		22	%		21	%		42	%		81	%

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

103

	Transamerica Small/Mid Cap Value
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	22.89		$	17.12		$	16.21		$	13.97		$	12.73
Investment Operations
Net investment income (loss)(a)		0.06			0.02			(0.01	)		(0.11	)		(0.06	)
Net realized and unrealized gain (loss) on investments		(8.27	)		6.06			2.07			2.77			2.52
Total from investment operations		(8.21	)		6.08			2.06			2.66			2.46
Distributions
Net investment income		—			—			(0.03	)		—			—
Net realized gains on investments		(2.49	)		(0.31	)		(1.12	)		(0.42	)		(1.22	)
Total distributions		(2.49	)		(0.31	)		(1.15	)		(0.42	)		(1.22	)
Net Asset Value
End of year	$	12.19		$	22.89		$	17.12		$	16.21		$	13.97
Total Return(b)		(39.85	)%		36.09	%		13.21	%		19.30	%		19.85	%
Net Assets End of Year	$	31,716		$	53,285		$	47,007		$	46,410		$	40,477
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.07	%		2.07	%		2.10	%		2.14	%		1.97	%
Before reimbursement/fee waiver		2.07	%		2.07	%		2.10	%		2.14	%		1.97	%
Net investment income (loss), to average net assets(c)		0.34	%		0.12	%		(0.06	)%		(0.70	)%		(0.43	)%
Portfolio turnover rate		48	%		22	%		21	%		42	%		81	%

	Transamerica Small/Mid Cap Value
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	22.81		$	17.09		$	16.18		$	13.96		$	12.73
Investment Operations
Net investment income (loss)(a)		0.09			0.02			—	(d)		(0.12	)		(0.01	)
Net realized and unrealized gain (loss) on investments		(8.24	)		6.05			2.06			2.77			2.46
Total from investment operations		(8.15	)		6.07			2.06			2.65			2.45
Distributions
Net investment income		(0.07	)		(0.04	)		(0.03	)		(0.01	)		—
Net realized gains on investments		(2.49	)		(0.31	)		(1.12	)		(0.42	)		(1.22	)
Total distributions		(2.56	)		(0.35	)		(1.15	)		(0.43	)		(1.22	)
Net Asset Value
End of year	$	12.10		$	22.81		$	17.09		$	16.18		$	13.96
Total Return(b)		(39.84	)%		36.16	%		13.23	%		19.22	%		19.78	%
Net Assets End of Year	$	95,729		$	63,856		$	29,105		$	21,532		$	19,678
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.04	%		2.04	%		2.08	%		2.20	%		2.07	%
Before reimbursement/fee waiver		2.04	%		2.04	%		2.08	%		2.20	%		2.07	%
Net investment income (loss), to average net assets(c)		0.52	%		0.10	%		(0.03	)%		(0.76	)%		(0.02	)%
Portfolio turnover rate		48	%		22	%		21	%		42	%		81	%

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

104

	Transamerica Small/Mid Cap Value
	Class I
	October 31, 2008			October 31, 2007			October 31, 2006(f)
Net Asset Value
Beginning of year	$	23.91		$	17.87		$	16.84
Investment Operations
Net investment income(a)		0.30			0.26			0.18
Net realized and unrealized gain (loss) on investments		(8.67	)		6.32			1.97
Total from investment operations		(8.37	)		6.58			2.15
Distributions
Net investment income		(0.24	)		(0.23	)		—
Net realized gains on investments		(2.49	)		(0.31	)		(1.12	)
Total distributions		(2.73	)		(0.54	)		(1.12	)
Net Asset Value
End of year	$	12.81		$	23.91		$	17.87
Total Return(b)		(39.11	)%		37.78	%		13.30	%(g)
Net Assets End of Year	$	214,351		$	487,605		$	478,728
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.85	%		0.85	%		0.86	%(h)
Before reimbursement/fee waiver		0.85	%		0.85	%		0.86	%(h)
Net investment income, to average net assets(c)		1.58	%		1.30	%		1.05	%(h)
Portfolio turnover rate		48	%		22	%		21	%(g)

	Transamerica Templeton Global
	Class A
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	35.83		$	29.28		$	24.68		$	22.57		$	21.41
Investment Operations
Net investment income (loss)(a)		0.33			0.19			0.15			0.21			(0.07	)
Net realized and unrealized gain (loss) on investments		(16.19	)		6.70			4.45			2.14			1.23
Total from investment operations		(15.86	)		6.89			4.60			2.35			1.16
Distributions
Net investment income		(0.34	)		(0.34	)		—	(d)		(0.24	)		—
Total distributions		(0.34	)		(0.34	)		—	(d)		(0.24	)		—
Net Asset Value
End of year	$	19.63		$	35.83		$	29.28		$	24.68		$	22.57
Total Return(b)		(44.68	)%		23.74	%		18.65	%		10.41	%		5.41	%
Net Assets End of Year	$	73,721		$	118,738		$	117,367		$	385,504		$	226,517
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.55	%		1.55	%		1.55	%		1.42	%		1.85	%
Before reimbursement/fee waiver		1.61	%		1.63	%		1.62	%		1.42	%		1.85	%
Net investment income (loss), to average net assets(c)		1.13	%		0.59	%		0.55	%		0.85	%		(0.31	)%
Portfolio turnover rate		28	%		30	%		55	%		79	%		140	%

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

105

	Transamerica Templeton Global
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	33.52		$	27.40		$	23.24		$	21.23		$	20.25
Investment Operations
Net investment income (loss)(a)		0.08			(0.02	)		(0.01	)		0.02			(0.20	)
Net realized and unrealized gain (loss) on investments		(15.14	)		6.28			4.17			1.99			1.18
Total from investment operations		(15.06	)		6.26			4.16			2.01			0.98
Distributions
Net investment income		(0.05	)		(0.14	)		—			—	(d)		—
Total distributions		(0.05	)		(0.14	)		—			—	(d)		—
Net Asset Value
End of year	$	18.41		$	33.52		$	27.40		$	23.24		$	21.23
Total Return(b)		(44.99	)%		22.94	%		17.90	%		9.48	%		4.83	%
Net Assets End of Year	$	10,746		$	63,876		$	75,711		$	90,877		$	117,409
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%		2.20	%		2.20	%		2.20	%		2.49	%
Before reimbursement/fee waiver		2.44	%		2.39	%		2.42	%		2.41	%		2.49	%
Net investment income (loss), to average net assets(c)		0.29	%		(0.07	)%		(0.05	)%		0.07	%		(0.93	)%
Portfolio turnover rate		28	%		30	%		55	%		79	%		140	%

	Transamerica Templeton Global
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	33.47		$	27.37		$	23.21		$	21.21		$	20.25
Investment Operations
Net investment income (loss)(a)		0.12			(0.02	)		(0.01	)		0.02			(0.15	)
Net realized and unrealized gain (loss) on investments		(15.10	)		6.27			4.17			1.99			1.11
Total from investment operations		(14.98	)		6.25			4.16			2.01			0.96
Distributions
Net investment income		(0.22	)		(0.15	)		—			(0.01	)		—
Total distributions		(0.22	)		(0.15	)		—			(0.01	)		—
Net Asset Value
End of year	$	18.27		$	33.47		$	27.37		$	23.21		$	21.21
Total Return(b)		(45.05	)%		22.95	%		17.87	%		9.52	%		4.74	%
Net Assets End of Year	$	14,286		$	31,506		$	32,341		$	36,938		$	48,378
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%		2.20	%		2.20	%		2.20	%		2.18	%
Before reimbursement/fee waiver		2.26	%		2.31	%		2.35	%		2.38	%		2.18	%
Net investment income (loss), to average net assets(c)		0.43	%		(0.07	)%		(0.05	)%		0.07	%		(0.72	)%
Portfolio turnover rate		28	%		30	%		55	%		79	%		140	%

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

106

	Transamerica Value Balanced
	Class A
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	14.38		$	13.30		$	11.95		$	12.11		$	11.49
Investment Operations
Net investment income(a)		0.30			0.28			0.23			0.24			0.18
Net realized and unrealized gain (loss) on investments		(4.74	)		1.41			1.54			0.69			0.61
Total from investment operations		(4.44	)		1.69			1.77			0.93			0.79
Distributions
Net investment income		(0.31	)		(0.23	)		(0.24	)		(0.25	)		(0.17	)
Net realized gains on investments		(0.72	)		(0.38	)		(0.18	)		(0.84	)		—
Total distributions		(1.03	)		(0.61	)		(0.42	)		(1.09	)		(0.17	)
Net Asset Value
End of year	$	8.91		$	14.38		$	13.30		$	11.95		$	12.11
Total Return(b)		(32.94	)%		13.11	%		15.09	%		7.79	%		6.99	%
Net Assets End of Year	$	18,666		$	32,485		$	32,666		$	32,934		$	37,393
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.55	%		1.55	%		1.55	%		1.55	%		1.55	%
Before reimbursement/fee waiver		1.56	%		1.58	%		1.63	%		1.59	%		1.63	%
Net investment income, to average net assets(c)		2.51	%		2.06	%		1.84	%		2.03	%		1.50	%
Portfolio turnover rate		50	%		42	%		42	%		57	%		122	%

	Transamerica Value Balanced
	Class B
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	14.32		$	13.25		$	11.91		$	12.07		$	11.46
Investment Operations
Net investment income(a)		0.22			0.19			0.15			0.17			0.10
Net realized and unrealized gain (loss) on investments		(4.72	)		1.41			1.53			0.68			0.61
Total from investment operations		(4.50	)		1.60			1.68			0.85			0.71
Distributions
Net investment income		(0.22	)		(0.15	)		(0.16	)		(0.17	)		(0.10	)
Net realized gains on investments		(0.72	)		(0.38	)		(0.18	)		(0.84	)		—
Total distributions		(0.94	)		(0.53	)		(0.34	)		(1.01	)		(0.10	)
Net Asset Value
End of year	$	8.88		$	14.32		$	13.25		$	11.91		$	12.07
Total Return(b)		(33.37	)%		12.40	%		14.28	%		7.13	%		6.23	%
Net Assets End of Year	$	6,414		$	17,508		$	20,405		$	24,072		$	29,409
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%		2.20	%		2.20	%		2.20	%		2.20	%
Before reimbursement/fee waiver		2.30	%		2.27	%		2.28	%		2.27	%		2.30	%
Net investment income, to average net assets(c)		1.83	%		1.43	%		1.20	%		1.39	%		0.81	%
Portfolio turnover rate		50	%		42	%		42	%		57	%		122	%

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

107

	Transamerica Value Balanced
	Class C
	October 31,			October 31,			October 31,			October 31,			October 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	14.31		$	13.25		$	11.91		$	12.07		$	11.46
Investment Operations
Net investment income(a)		0.22			0.19			0.15			0.17			0.11
Net realized and unrealized gain (loss) on investments		(4.72	)		1.41			1.53			0.69			0.60
Total from investment operations		(4.50	)		1.60			1.68			0.86			0.71
Distributions
Net investment income		(0.22	)		(0.16	)		(0.16	)		(0.18	)		(0.10	)
Net realized gains on investments		(0.72	)		(0.38	)		(0.18	)		(0.84	)		—
Total distributions		(0.94	)		(0.54	)		(0.34	)		(1.02	)		(0.10	)
Net Asset Value
End of year	$	8.87		$	14.31		$	13.25		$	11.91		$	12.07
Total Return(b)		(33.33	)%		12.40	%		14.33	%		7.18	%		6.31	%
Net Assets End of Year	$	5,833		$	11,674		$	11,316		$	11,926		$	14,285
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		2.13	%		2.17	%		2.20	%		2.16	%		2.20	%
Before reimbursement/fee waiver		2.13	%		2.17	%		2.20	%		2.16	%		2.39	%
Net investment income, to average net assets(c)		1.92	%		1.44	%		1.19	%		1.43	%		0.78	%
Portfolio turnover rate		50	%		42	%		42	%		57	%		122	%

(a)	Calculation is based on average number of shares outstanding.
(b)	Total return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase.
(c)	Includes Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B, Class C, and Class T, respectively.
(d)	Rounds to less than $(0.01) or $0.01.
(e)	Rounds to less than (0.01%) or 0.01%.
(f)	Commenced operations November 15, 2005.
(g)	Not annualized.
(h)	Annualized.
(i)	Commenced operations October 27, 2006.
(j)	Commenced operations November 8, 2004.
(k)	Commenced operations November 1, 2007.

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

108

NOTES TO FINANCIAL STATEMENTS
At October 31, 2008
(all amounts in thousands)

NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Transamerica Funds (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Transamerica Balanced, Transamerica Convertible Securities, Transamerica Equity, Transamerica Flexible Income, Transamerica Growth Opportunities, Transamerica High Yield Bond, Transamerica Legg Mason Partners All Cap, Transamerica Money Market, Transamerica Science & Technology, Transamerica Short-Term Bond, Transamerica Small/Mid Cap Value, Transamerica Templeton Global and Transamerica Value Balanced (each, a “Fund”; collectively, the “Funds”) are part of Transamerica Funds.

Effective March 1, 2008, Transamerica IDEX Mutual Funds changed its name to Transamerica Funds. Also effective on March 1, 2008, “TA IDEX” was removed from the beginning of each Fund name and replaced with “Transamerica”.

Transamerica Legg Mason Partners All Cap and Transamerica Science & Technology are “non-diversified” under the 1940 Act.

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

This report should be read in conjunction with the Funds’ current prospectus, which contains more complete information about the Funds.

In preparing the Funds’ 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 Funds.

Multiple class operations, income and expenses: The Funds, except Transamerica Legg Mason Partners All Cap, Transamerica Short-Term Bond, Transamerica Equity and Transamerica Templeton Global, currently have four classes of shares, Class A, Class B, Class C, and Class I. Transamerica Balanced, Transamerica Legg Mason Partners All Cap and Transamerica Templeton Global currently have three classes of shares; Class A, Class B, and Class C. Transamerica Equity currently has five classes of shares, Class A, Class B, Class C, Class I and Class T. Effective November 1, 2007, in addition to Class I, Transamerica Short-Term Bond also offers Class A and Class C shares. Effective March 1, 2008, Class I of Transamerica Templeton Global was liguidated. Class T shares are not available to new investors. Each of the above classes has a public offering price that reflects different sales charges, if any, and expense levels. Class I shares are currently available for investment primarily to certain affiliated asset allocation funds.

Class I shares may also be made available to other investors, including institutional investors such as foreign insurers, domestic insurance companies and their separate accounts, and eligible retirement plans whose record keepers or financial service firm intermediaries have entered into agreements with Transamerica Funds or its agents. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.

Security valuations: The Funds value their investments at the close of the New York Stock Exchange (“NYSE”), normally 4 p.m. ET, each day the NYSE is open for business. The Funds’ investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.

Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.

Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.

Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Funds’ net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not “readily available.” As a result, foreign equity securities held by the Funds may be valued at fair market value as determined in good faith by Transamerica Asset Management, Inc.’s (“TAM”) Valuation Committee under the supervision of the Board of Trustees.

Other securities for which quotations are not readily available or whose values have been determined to be unreliable are valued at fair market value as determined in good faith by TAM’s Valuation Committee under the supervision of the Board of Trustees.

109

NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2008
(all amounts in thousands)

NOTE 1. (continued)

In September 2006, the Financial Accounting Standards Board (“FASB”) issued its new Standard No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted.

As of October 31, 2008, Management does not expect the adoption of FAS 157 to impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain of the measurements reported in the statement of operations for a fiscal period.

Repurchase Agreements: The Funds are authorized to enter into repurchase agreements. The Funds, through their custodian, State Street Bank & Trust Company (“State Street”), receive delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 102% of the resale price. The Funds will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.

Commission recapture: The sub-advisers of certain Funds, to the extent consistent with the best execution and usual commission rate policies and practices, have elected to place security transactions of the Funds with broker/dealers with which Transamerica Funds 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 Funds. In no event will commissions paid by the Funds be used to pay expenses that would otherwise be borne by any other funds within Transamerica Funds, or by any other party.

Recaptured comissions during the year ended October 31, 2008 are included in net realized gains on the Statements of Operations and are summarized as follows:

Fund	Commissions
Transamerica Balanced	$	5
Transamerica Equity		61
Transamerica Growth Opportunities		18
Transamerica Legg Mason Partners All Cap		10
Transamerica Science & Technology		4
Transamerica Templeton Global		6

Securities Lending: The Funds may lend securities to qualified borrowers, with State Street acting as the Funds’ lending agent. The Funds earn negotiated lenders’ fees. The Funds receive cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in the State Street Navigator Securities Lending Trust-Prime Portfolio. The Funds monitor the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. The value of loaned securities and related collateral outstanding at October 31, 2008 is shown in the Schedule of Investments and also in the Statement of Assets and Liabilities.

Income from loaned securities on the Statement of Operations is net of fees earned by State Street.

Real Estate Investment Trusts (“REITs”): 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. Since some of the Funds invest primarily in real estate securities, the net asset value per share may fluctuate more widely than the value of shares of a fund that invests in a broad range of industries.

Dividend income is recorded at managements’ 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.

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 Funds are informed of the ex-dividend date. Interest income, including accretion of discounts and amortization of premiums, is recorded on the accrual basis commencing on the settlement date.

Foreign currency denominated investments: The accounting records of the Funds are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the closing exchange rate each day. The cost of foreign securities is translated at the exchange rate in effect when the investment was acquired. The Funds combine fluctuations from currency exchange rates and fluctuations in value when computing net realized and unrealized gains or losses from investments.

Net foreign currency gains and losses resulting from changes in exchange rates include: 1) foreign currency fluctuations between trade date and settlement date of investment security transactions; 2) gains and losses on forward foreign currency contracts; and 3) the difference between the receivable amounts of interest and dividends recorded in the accounting records in U.S. dollars and the amounts actually received.

110

NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2008
(all amounts in thousands)

NOTE 1. (continued)

Foreign currency denominated assets may involve risks not typically associated with domestic transactions. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social and economic developments, including those particular to a specific industry, country or region.

Forward foreign currency contracts: The Funds may enter into forward foreign currency contracts to hedge against exchange rate risk arising from investments in securities denominated in foreign currencies. Contracts are valued at the contractual forward rate and 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 currency contracts at October 31, 2008 are listed in the Schedules of Investments.

Futures contracts: The Funds may enter into futures contracts to manage exposure to market, interest rate or currency fluctuations. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. The primary risks associated with futures contracts are imperfect correlation between the change in market value of the securities held and the prices of futures contracts; the possibility of an illiquid market and inability of the counterparty to meet the contract terms.

The underlying face amounts of open futures contracts at October 31, 2008 are listed in the Schedules of Investments. The variation margin receivable or payable, as applicable, is included in the Statements of Assets and Liabilities. Variation margin represents the additional payment due or excess deposits made in order to maintain the equity account at the required margin level.

Option contracts: The Funds may enter into options contracts to manage exposure to market fluctuations. 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. The primary risks associated with options are imperfect correlation between the change in value of the securities held and the prices of the options contracts; the possibility of an illiquid market; and inability of the counterparty to meet the contracts terms. When the Funds write covered call or put options, an amount equal to the premium received by the Funds are included in the Funds’ Statements of Assets and Liabilities as an asset and as an equivalent liability. Options are marked-to-market daily to reflect the current value of the option written.

Transactions in written options were as follows:

Transamerica Value Balanced	Premium			Contracts
Balance at October 31, 2007	$	418			3,253
Sales		51			533
Closing Buys		(413	)		(3,268	)
Expirations		(51	)		(473	)
Exercised		(5	)		(45	)
Balance at October 31, 2008	$	—			—

Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the year ended October 31, 2008, the Funds received redemption fees which are disclosed in the Funds’ Statements of Changes in Net Assets.

Dividend distributions: Distributions to shareholders are recorded on the ex-dividend date and are determined in accordance with federal income tax regulations.

Temporary Guarantee Program: The Transamerica Money Market has enrolled in the U.S. Treasury Department’s Temporary Guarantee Program for money market funds (the “Program”). Under the Program, the U.S. Treasury guarantees the $1.00 dollar per share value of fund shares outstanding as of September 19, 2008, subject to certain terms and limitations.

Only shareholders who held shares as of September 19, 2008 are eligible to participate in the guarantee. Those shareholders may purchase and redeem shares in their account during the period covered by the Program. However, the number of shares covered by the guarantee cannot exceed the number of shares held by the shareholder at the close of business on September 19, 2008. Thus, to the extent the overall value of a shareholder’s account increases after September 19, 2008, the amount of the increase will not be covered by the guarantee. If a Fund shareholder closes his or her Fund account, any future investment in the Fund will not be guaranteed.

The guarantee will be triggered if the market-based net asset value of the Fund is less than $0.995, unless promptly cured (a “Guarantee Event”). If a Guarantee Event were to occur, the Fund would be required to liquidate. Upon liquidation and subject to the availability of funds under the Program, eligible shareholders would be entitled to receive payments equal to $1.00 per “covered share.” The number of “covered shares” held by a shareholder would be equal to the lesser of (1) the number of shares owned by that shareholder on September 19, 2008 or (2) the number of shares owned by that shareholder on the date upon which the Guarantee Event occurs. The coverage provided for all money market funds participating in the Program (and, in turn, any amount available to the Fund and its eligible shareholders) is subject to an overall limit, currently approximately $50 billion.

The initial period of the Program covered a three month period from September 19, 2008 to December 18, 2008. On November 24, 2008, the Treasury Department announced an extension of the Program from December 19, 2008 through April 30, 2009 (the “Program Extension Period”). On December 5, 2008, the Board of Trustees of the Fund elected to participate in the Program Extension Period. The Program may be later extended by the Treasury Department to terminate no later than September 18, 2009. If the Treasury Department extends the Program, the Board will consider whether to continue to participate. The Fund has paid to the Treasury a fee of 0.01% of its net assets as of September 19, 2008 to participate in the initial three month period of the Program and a fee of 0.015% of its net assets as of September 19, 2008 to participate in the Program Extension Period.

111

NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2008
(all amounts in thousands)

NOTE 1. (continued)

These expenses are borne by the Fund without regard to any expense limitation agreement in effect for the Fund. Participation in any extension of the Program would require payment of an additional fee, although there can be no assurance that the Fund will elect to participate, or be eligible to participate, in any extension of the Program.

NOTE 2. RELATED PARTY TRANSACTIONS

TAM is the Funds’ investment adviser. Prior to January 1, 2008, TAM was known as Transamerica Fund Advisors, Inc. Transamerica Fund Services, Inc. (“TFS”) is the Funds’ administrator and transfer agent. Transamerica Capital, Inc. (“TCI”) is the Funds’ distributor/principal underwriter. TAM, TFS, and TCI are affiliates of AEGON NV, a Netherlands corporation.

Certain officers and trustees of the Funds are also officers and/or directors of TAM, TFS, and TCI.

The following schedule reflects the percentage of the Funds’ assets owned by affiliated investment companies at October 31, 2008:

Transamerica Convertible Securities	Net Assets		% of Net Assets
Transamerica Asset Allocation-Conservative Portfolio	$	17,546		15.61	%
Transamerica Asset Allocation-Moderate Portfolio		36,033		32.05
Transamerica Asset Allocation-Moderate Growth Portfolio		37,175		33.07
Total	$	90,754		80.73	%

Transamerica Equity	Net Assets		% of Net Assets
Transamerica Asset Allocation-Conservative Portfolio	$	38,924		3.90	%
Transamerica Asset Allocation-Growth Portfolio		156,502		15.68
Transamerica Asset Allocation-Moderate Portfolio		102,732		10.30
Transamerica Asset Allocation-Moderate Growth Portfolio		199,564		20.00
Total	$	497,722		49.88	%

Transamerica Flexible Income	Net Assets		% of Net Assets
Transamerica Asset Allocation-Conservative Portfolio	$	10,154		6.51	%
Transamerica Asset Allocation-Moderate Portfolio		17,390		11.14
Transamerica Asset Allocation-Moderate Growth Portfolio		36,341		23.29
Transamerica Asset Allocation-Conservative VP		8,700		5.57
Transamerica Asset Allocation-Moderate Growth VP		28,986		18.57
Transamerica Asset Allocation-Moderate VP		26,051		16.69
Total	$	127,622		81.77	%

Transamerica Growth Opportunities	Net Assets		% of Net Assets
Transamerica Asset Allocation-Conservative Portfolio	$	3,416		2.15	%
Transamerica Asset Allocation-Growth Portfolio		28,177		17.73
Transamerica Asset Allocation-Moderate Portfolio		12,752		8.03
Transamerica Asset Allocation-Moderate Growth Portfolio		41,444		26.09
Total	$	85,789		54.00	%

Transamerica High Yield Bond	Net Assets		% of Net Assets
Transamerica Asset Allocation-Conservative Portfolio	$	54,271		11.85	%
Transamerica Asset Allocation-Moderate Portfolio		82,868		18.09
Transamerica Asset Allocation-Moderate Growth Portfolio		99,466		21.72
Transamerica Asset Allocation-Conservative VP		38,905		8.50
Transamerica Asset Allocation-Moderate Growth VP		66,156		14.45
Transamerica Asset Allocation-Moderate VP		73,511		16.05
Total	$	415,177		90.66	%

Transamerica Money Market	Net Assets		% of Net Assets
Transamerica Asset Allocation-Conservative Portfolio	$	9,000		3.31	%
Transamerica Asset Allocation-Growth Portfolio		2,868		1.06
Transamerica Asset Allocation-Moderate Portfolio		2,425		0.89
Transamerica Asset Allocation-Moderate Growth Portfolio		2,614		0.96
Transamerica Multi-Manager Alternative Strategies Portfolio		12,159		4.47
Total	$	29,066		10.69	%

Transamerica Science & Technology	Net Assets		% of Net Assets
Transamerica Asset Allocation-Conservative Portfolio	$	2,610		4.88	%
Transamerica Asset Allocation-Growth Portfolio		12,377		23.13
Transamerica Asset Allocation-Moderate Portfolio		8,601		16.07
Transamerica Asset Allocation-Moderate Growth Portfolio		22,347		41.76
Total	$	45,935		85.84	%

Transamerica Short-Term Bond	Net Assets		% of Net Assets
Transamerica Asset Allocation-Conservative Portfolio	$	49,722		9.84	%
Transamerica Asset Allocation-Moderate Portfolio		81,857		16.20
Transamerica Asset Allocation-Moderate Growth Portfolio		85,649		16.95
Transamerica Asset Allocation-Conservative VP		56,316		11.15
Transamerica Asset Allocation-Moderate Growth VP		105,209		20.82
Transamerica Asset Allocation-Moderate VP		103,382		20.46
Transamerica International Moderate Growth VP		6,649		1.32
Total	$	488,784		96.74	%

Transamerica Small/Mid Cap Value	Net Assets		% of Net Assets
Transamerica Asset Allocation-Conservative Portfolio	$	8,376		1.55	%
Transamerica Asset Allocation-Growth Portfolio		67,181		12.42
Transamerica Asset Allocation-Moderate Portfolio		65,374		12.08
Transamerica Asset Allocation-Moderate Growth Portfolio		62,756		11.60
Total	$	203,687		37.65	%

112

NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2008
(all amounts in thousands)

NOTE 2. (continued)

Investment advisory fees: The Funds pay management fees to TAM based on average daily net assets (“ANA”) at the following breakpoints:

Transamerica Balanced
First $250 million	0.80	%
Over $250 million up to $500 million	0.75	%
Over $500 million up to $1.5 billion	0.70	%
Over $1.5 billion	0.625	%
Transamerica Convertible Securities
First $250 million	0.75	%
Over $250 million	0.70	%
Transamerica Equity
First $500 million	0.75	%
Over $500 million up to $2.5 billion	0.70	%
Over $2.5 billion	0.65	%
Transamerica Flexible Income
First $250 million	0.725	%
Over $250 million up to $350 million	0.675	%
Over $350 million	0.625	%
Transamerica Growth Opportunities
First $250 million	0.80	%
Over $250 million up to $500 million	0.75	%
Over $500 million	0.70	%
Transamerica High Yield Bond
First $400 million	0.59	%
Over $400 million up to $750 million	0.575	%
Over $750 million	0.55	%
Transamerica Legg Mason Partners All Cap
First $500 million	0.80	%
Over $500 million	0.675	%
Transamerica Money Market
Average daily net assets	0.40	%
Transamerica Science & Technology
First $500 million	0.78	%
Over $500 million	0.70	%
Transamerica Short-Term Bond
First $250 million	0.65	%
Over $250 million up to $500 million	0.60	%
Over $500 million up to $1 billion	0.575	%
Over $1 billion	0.55	%
Transamerica Small/Mid Cap Value
First $500 million	0.80	%
Over $500 million	0.75	%
Transamerica Templeton Global
First $500 million	0.80	%
Over $500 million	0.70	%
Transamerica Value Balanced
First $500 million	0.75	%
Over $500 million up to $1 billion	0.65	%
Over $1 billion	0.60	%

TAM has contractually agreed to waive its advisory fee and will reimburse the Funds to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:

	Expense
Fund	Limit
Transamerica Balanced		1.45	%
Transamerica Convertible Securities		1.35
Transamerica Equity*		1.17
Transamerica Flexible Income		1.50
Transamerica Growth Opportunities*		1.40
Transamerica High Yield Bond*		1.24
Transamerica Legg Mason Partners All Cap*		1.20
Transamerica Money Market		0.48
Transamerica Science & Technology		1.18
Transamerica Short-Term Bond		0.85
Transamerica Small/Mid Cap Value		1.40
Transamerica Templeton Global		1.20
Transamerica Value Balanced*		1.20

* The Fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Funds may be required to pay the adviser a portion or all of the reimbursed class expenses.

There were no amounts recaptured at October 31, 2008.

The following amounts were available for recapture at October 31, 2008:

Transamerica	Reimbursement of		Available for
Equity	Class Expenses		Recapture Through
Fiscal Year 2008:				10/31/2011
Class B	$	54

Transamerica Growth	Reimbursement of		Available for
Opportunities	Class Expenses		Recapture Through
Fiscal Year 2008:				10/31/2011
Class A	$	31
Class B		27

Transamerica Legg	Reimbursement of		Available for
Mason Partners All Cap	Class Expenses		Recapture Through
Fiscal Year 2008:				10/31/2011
Class A	$	17
Class B		24

Transamerica	Reimbursement of		Available for
Money Market	Class Expenses		Recapture Through
Fiscal Year 2008:				10/31/2011
Class A	$	276
Class B		71
Class C		62
Class I		2
Fiscal Year 2007:				10/31/2010
Class A		321
Class B		88
Class C		45
Class I		18
Fiscal Year 2006:				10/31/2009
Class A		290
Class B		81
Class C		47

113

NOTES TO FINANCIAL STATEMENTS (Continued)
At October 31, 2008
(all amounts in thousands)

NOTE 2. (continued)

Transamerica	Reimbursement of		Available for
Science & Technology	Class Expenses		Recapture Through
Fiscal Year 2008:				10/31/2011
Class A	$	11
Class B		12
Class C		3
Fiscal Year 2007:				10/31/2010
Class A		13
Class B		14
Class C		4
Fiscal Year 2006:				10/31/2009
Class A		12
Class B		19
Class C		4

Transamerica	Reimbursement of		Available for
Templeton Global	Class Expenses		Recapture Through
Fiscal Year 2008:				10/31/2011
Class A	$	66
Class B		82
Class C		14
Fiscal Year 2007:				10/31/2010
Class A		94
Class B		131
Class C		35
Fiscal Year 2006:				10/31/2009
Class A		97
Class B		184
Class C		53

Transamerica Value	Reimbursement of		Available for
Balanced	Class Expenses		Recapture Through
Fiscal Year 2008:				10/31/2011
Class A	$	3
Class B		11

Distribution and service fees: The Funds have 12b-1 distribution plans under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Funds. The Funds are authorized under the 12b-1 plans to pay fees on each class up to the following limits: 0.35% for Class A, 1.00% for Class B, and 1.00% for Class C. 12b-1 fees are not applicable for Class I and Class T.

Underwriter commissions relate to front-end sales charges imposed for Class A shares and contingent deferred sales charges from Class B, Class C, and certain Class A share redemptions. For the year ended October 31, 2008, the underwriter commissions were as follows:

Transamerica Balanced
Received by Underwriter	$	65
Retained by Underwriter		10
Contingent Deferred Sales Charge		49
Transamerica Convertible Securities
Received by Underwriter	$	68
Retained by Underwriter		12
Contingent Deferred Sales Charge		14
Transamerica Equity
Received by Underwriter	$	408
Retained by Underwriter		62
Contingent Deferred Sales Charge		105
Transamerica Flexible Income
Received by Underwriter	$	36
Retained by Underwriter		7
Contingent Deferred Sales Charge		24
Transamerica Growth Opportunities
Received by Underwriter	$	76
Retained by Underwriter		12
Contingent Deferred Sales Charge		30
Transamerica High Yield Bond
Received by Underwriter	$	88
Retained by Underwriter		18
Contingent Deferred Sales Charge		31
Transamerica Legg Mason Partners All Cap
Received by Underwriter	$	42
Retained by Underwriter		6
Contingent Deferred Sales Charge		72
Transamerica Money Market
Received by Underwriter*	$	—
Retained by Underwriter*		—
Contingent Deferred Sales Charge		141
Transamerica Science & Technology
Received by Underwriter	$	26
Retained by Underwriter		4
Contingent Deferred Sales Charge		3
Transamerica Short-Term Bond
Received by Underwriter	$	33
Retained by Underwriter		6
Contingent Deferred Sales Charge		1
Transamerica Small/Mid Cap Value
Received by Underwriter	$	1,099
Retained by Underwriter		165
Contingent Deferred Sales Charge		136
Transamerica Templeton Global
Received by Underwriter	$	68
Retained by Underwriter		11
Contingent Deferred Sales Charge		22
Transamerica Value Balanced
Received by Underwriter	$	21
Retained by Underwriter		3
Contingent Deferred Sales Charge		12

* Rounds to less than $1.

Administrative services: The Funds have entered into agreements with TFS for financial and legal fund administration services. The Funds pay TFS an annual fee of 0.02% of ANA. The Legal fees on the Statements of Operations are for fees paid to external legal counsel.

Transfer agent fees: The Funds pay TFS an annual per-account charge for each open and closed account. The Funds paid TFS the following for the year ended October 31, 2008:

Fund	Fees
Transamerica Balanced	$	403
Transamerica Convertible Securities		34
Transamerica Equity		2,188
Transamerica Flexible Income		92
Transamerica Growth Opportunities		651
Transamerica High Yield Bond		98
Transamerica Legg Mason Partners All Cap		409
Transamerica Money Market		365
Transamerica Science & Technology		57
Transamerica Short-Term Bond		2
Transamerica Small/Mid Cap Value		619
Transamerica Templeton Global		685
Transamerica Value Balanced		140

114

NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2008
(all amounts in thousands)

NOTE 2. (continued)

Brokerage commissions: There were no brokerage commissions incurred on security transactions placed with affiliates of the advisers for the year ended October 31, 2008.

Deferred compensation plan: Each eligible Independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan (the “Plan”) maintained by Transamerica Funds. Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in Class A shares of any series of Transamerica Funds, including the Funds, or investment options under Transamerica Partners Institutional Funds Group or Transamerica Institutional Asset Allocation Funds, or funds of Transamerica Investors, Inc. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica Funds. The pro rata liability to the Funds of all deferred fees in the Plan as of October 31, 2008, amounted to the following:

Fund	Deferred Fees
Transamerica Balanced	$	5
Transamerica Convertible Securities		5
Transamerica Equity		51
Transamerica Flexible Income		12
Transamerica Growth Opportunities		9
Transamerica High Yield Bond		15
Transamerica Legg Mason Partners All Cap		4
Transamerica Money Market		7
Transamerica Science & Technology		3
Transamerica Short-Term Bond		19
Transamerica Small/Mid Cap Value		24
Transamerica Templeton Global		6
Transamerica Value Balanced		2

Retirement plan: Under a prior retirement plan (the “Emeritus Plan”) available to the Independent Trustees, each Independent Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica Funds upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.

Such amounts shall be accrued by Transamerica Funds on a pro rata basis allocable to each Transamerica Fund based on the relative assets of the Fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee’s current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to a Trustee Emeritus (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.

At October 31, 2008, the Funds’ liabilities related to the Emeritus Plan were as follows:

Fund	Emeritus Fees
Transamerica Balanced	$	3
Transamerica Convertible Securities		3
Transamerica Equity		23
Transamerica Flexible Income		4
Transamerica Growth Opportunities		5
Transamerica High Yield Bond		5
Transamerica Legg Mason Partners All Cap		3
Transamerica Money Market		2
Transamerica Science & Technology		1
Transamerica Short-Term Bond		4
Transamerica Small/Mid Cap Value		7
Transamerica Templeton Global		4
Transamerica Value Balanced		1

Amounts deferred and accrued under the Emeritus Plan are unfunded and unsecured claims against the general assets of Transamerica Funds.

The Emeritus Plan was terminated effective October 30, 2007. Upon the termination, the Funds shall continue to pay any remaining benefits in accordance with the Plan, but no further compensation shall accrue under the Plan.

NOTE 3. INVESTMENT TRANSACTIONS

The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the year ended October 31, 2008 were as follows:

					Proceeds from
	Purchases of				maturities and sales of
	securities:				securities:
			U.S.				U.S.
Fund	Long-term		Government		Long-term		Government
Transamerica Balanced	$	55,746	$	24,793	$	86,280	$	27,942
Transamerica Convertible Securities		131,498		—		135,746		—
Transamerica Equity		504,933		—		643,721		—
Transamerica Flexible Income		156,463		185,692		327,485		204,119
Transamerica Growth Opportunities		121,337		—		183,044		—
Transamerica High Yield Bond		392,081		—		167,966		—
Transamerica Legg Mason Partners All Cap		36,586		—		82,157		—
Transamerica Science &-Technology		38,728		—		40,590		—
Transamerica Short-Term Bond		265,480		101,901		469,988		4,984
Transamerica Small/Mid Cap Value		563,242		—		337,743		—
Transamerica Templeton Global		51,468		—		119,372		—
Transamerica Value Balanced		18,351		6,576		33,926		6,176

115

NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2008
(all amounts in thousands)

NOTE 4. FEDERAL INCOME TAX MATTERS

The Funds have not made any provisions for federal income or excise taxes due to their policy to distribute all of their taxable income and capital gains to their shareholders and otherwise qualify as regulated investment companies under Subchapter M of the Internal Revenue Code. Management has evaluated the Funds’ tax provisions taken for all open tax years and has concluded that no provision for income tax is required in the Funds’ financial statements. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, structured notes, foreign bonds, swaps, net operating losses and distribution reclasses.

Therefore, distributions determined in accordance with tax regulations may differ significantly in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. These reclassifications are as follows:

							Undistributed
	Shares of						(accumulated)
	beneficial						net realized
	interest,			Undistributed			gain (loss)
	unlimited			(accumulated) net			from
	shares			investment			investment
Fund	authorized			income (loss)			securities
Transamerica Convertible Securities	$	—		$	32		$	(32	)
Transamerica Equity		(192,099	)		—			192,099
Transamerica Flexible Income		—			256			(256	)
Transamerica Growth Opportunities		(57,454	)		933			56,521
Transamerica High Yield Bond		—			34			(34	)
Transamerica Science & Technology		(435	)		434			1
Transamerica Small/Mid Cap Value		—			(610	)		610
Transamerica Templeton Global		3			714			(717	)
Transamerica Value Balanced		(39	)		81			(42	)

The capital loss carryforwards are available to offset future realized capital gains through the periods listed:

	Capital Loss
Fund	Carryforwards		Available Through
Transamerica Convertible Securities	$	17,338	October 31, 2016
Transamerica Equity		308,384	October 31, 2009
Transamerica Equity		94,612	October 31, 2010
Transamerica Equity		52,413	October 31, 2016
Transamerica Flexible Income		890	October 31, 2013
Transamerica Flexible Income		5,058	October 31, 2014
Transamerica Flexible Income		6,946	October 31, 2015
Transamerica Flexible Income		34,692	October 31, 2016
Transamerica Growth Opportunities		99,199	October 31, 2009
Transamerica Growth Opportunities		4,618	October 31, 2010
Transamerica Growth Opportunities		7,437	October 31, 2011
Transamerica Growth Opportunities		20,381	October 31, 2016
Transamerica High Yield Bond		1,546	October 31, 2011
Transamerica High Yield Bond		9,181	October 31, 2016
Transamerica Legg Mason Partners All Cap		2,284	October 31, 2016
Transamerica Money Market		1	October 31, 2013
Transamerica Money Market		1	October 31, 2014
Transamerica Science & Technology		505	October 31, 2016
Transamerica Short-Term Bond		658	October 31, 2013
Transamerica Short-Term Bond		1,787	October 31, 2014
Transamerica Short-Term Bond		1,304	October 31, 2015
Transamerica Short-Term Bond		10,368	October 31, 2016
Transamerica Small/Mid Cap Value		99,045	October 31, 2016
Transamerica Templeton Global		33,614	October 31, 2009
Transamerica Templeton Global		205,203	October 31, 2010
Transamerica Templeton Global		57,944	October 31, 2011
Transamerica Value Balanced		3,722	October 31, 2016

Funds not listed in the above table did not have any capital loss carryforwards.

The capital loss carryforwards utilized or expired during the year ended October 31, 2008 was as follows:

	Capital Loss Carryforwards
	Utilized/Expired During the
Fund	Year Ended October 31, 2008
Transamerica Equity	$	192,099
Transamerica Growth Opportunities		56,518
Transamerica Templeton Global		11,313

116

NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2008
(all amounts in thousands)

NOTE 4. (continued)

The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to short-term gains being treated as ordinary income for tax purposes. The tax character of distributions paid during 2007 and 2008 was as follows:

	Distributions Paid				Distributions Paid
	From: 2007				From: 2008
			Long-				Long-
			term				term
	Ordinary		Capital		Ordinary		Capital
	income		Gain		income		Gain
Transamerica Balanced	$	571	$	—	$	1,146	$	4,811
Transamerica Convertible Securities		2,509		14,409		10,032		28,135
Transamerica Flexible Income		20,040		—		20,665	$	—
Transamerica High Yield Bond		26,450		—		35,509		—
Transamerica Legg Mason Partners All Cap		390		29,704		440		14,797
Transamerica Money Market		7,678		—		4,684		—
Transamerica Science & Technology		—		—		—		3,111
Transamerica Short-Term Bond		22,977		—		25,117		—
Transamerica Small/Mid Cap Value		8,052		9,021		6,446		75,840
Transamerica Templeton Global		2,533		—		2,122		—
Transamerica Value Balanced		864		1,791		1,133		2,932

The tax basis components of distributable earnings as of October 31, 2008 are as follows:

											Net
	Undistributed		Undistributed					Other			Unrealized
	Ordinary		Long-term		Capital Loss			Temporary			Appreciation
Fund	income		Capital Gain		Carryforward			Differences			(Depreciation)
Transamerica Balanced	$	215	$	6,058	$	—		$	(26	)	$	(18,094	)
Transamerica Convertible Securities		520		—		(17,338	)		—			(23,254	)
Transamerica Equity		2,780		—		(455,409	)		(411	)		(224,269	)
Transamerica Flexible Income		811		—		(47,586	)		(6	)		(31,638	)
Transamerica Growth Opportunities		—		—		(131,635	)		(17	)		(32,033	)
Transamerica High Yield Bond		3,083		—		(10,727	)		(15	)		(177,667	)
Transamerica Legg Mason Partners All Cap		533		—		(2,284	)		(7	)		(10,758	)
Transamerica Money Market		305		—		(2	)		(220	)		—
Transamerica Science & Technology		—		—		(505	)		(1	)		(15,090	)
Transamerica Short-Term Bond		1,333		—		(14,117	)		—			(20,790	)
Transamerica Small/Mid Cap Value		7,852		—		(99,045	)		(1	)		(67,642	)
Transamerica Templeton Global		545		—		(296,761	)		(115	)		(35,942	)
Transamerica Value Balanced	$	24	$	—	$	(3,722	)	$	(12	)	$	(1,077	)

NOTE 5. ACCOUNTING PRONOUNCEMENT

In March 2008, the FASB issued its new Standard No. 161, “Disclosure About Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requires enhanced disclosures about a Fund’s derivative and hedging activities. Management is currently evaluating the impact the adoption of FAS 161 will have on the Funds’ financial statement disclosures.

NOTE 6. SUBSEQUENT EVENT

On November 24, 2008, the Treasury announced an extension of Treasury’s Temporary Guarantee Program for Money Market Funds until April 30, 2009 to support ongoing stability in the market. The Transamerica Money Market Fund elected to re-enroll in this Program.

117

Report of Independent Registered Certified Public Accounting Firm

To the Board of Trustees and Shareholders of Transamerica Balanced, Transamerica Convertible Securities, Transamerica Equity, Transamerica Flexible Income, Transamerica Growth Opportunities, Transamerica High Yield Bond, Transamerica Legg Mason Partners All Cap, Transamerica Money Market, Transamerica Science & Technology, Transamerica Short-Term Bond, Transamerica Small/Mid Cap Value, Transamerica Templeton Global, and Transamerica Value Balanced:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Transamerica Balanced, Transamerica Convertible Securities, Transamerica Equity, Transamerica Flexible Income, Transamerica Growth Opportunities, Transamerica High Yield Bond, Transamerica Legg Mason Partners All Cap, Transamerica Money Market, Transamerica Science & Technology, Transamerica Short-Term Bond, Transamerica Small/Mid Cap Value, Transamerica Templeton Global, and Transamerica Value Balanced (individually a “Fund”, collectively the “Funds”) at October 31, 2008, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

Tampa, Florida
December 29, 2008

118

SUPPLEMENTAL INFORMATION (unaudited)

TAX INFORMATION

For dividends paid during the year ended October 31, 2008, the Funds designated the following as qualified dividend income:

	Qualified Dividend
Fund	Income
Transamerica Balanced	$	1,146
Transamerica Convertible Securities		1,004
Transamerica Flexible Income		402
Transamerica Legg Mason Partners All Cap		440
Transamerica Small/Mid Cap Value		6,446
Transamerica Templeton Global		2,122
Transamerica Value Balanced		930

For corporate shareholders, investment income (dividend income plus short-term gains, if any) qualifies for the dividends received deductions as follows:

	Dividend Received
Fund	Deduction Percentage
Transamerica Balanced		100.00	%
Transamerica Convertible Securities		10.14	%
Transamerica Flexible Income		1.56	%
Transamerica Legg Mason Partners All Cap		100.00	%
Transamerica Small/Mid Cap Value		100.00	%
Transamerica Templeton Global		18.95	%
Transamerica Value Balanced		85.38	%

For tax purposes, the Long-Term Capital Gain Designations for the year ended October 31, 2008 were as follows:

	Long-Term Capital
Fund	Designation
Transamerica Balanced	$	4,811
Transamerica Convertible Securities		28,135
Transamerica Legg Mason Partners All Cap		14,798
Transamerica Science & Technology		3,111
Transamerica Small/Mid Cap Value		75,840
Transamerica Value Balanced		2,932

The information and distributions reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2008. Complete information will be computed and reported in conjunction with your 2008 Form 1099-DIV.

119

TRANSAMERICA FUNDS

Management of the Funds

The Board Members and executive officers of the Trust are listed below. 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 the Trust 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, the “Transamerica Asset Management Group, Inc.”). The Transamerica Asset Management Group (“TAMG”) consists of Transamerica Funds, Transamerica Series Trust (“TST”), Transamerica Investors, Inc. (“TII”), 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”).

The mailing address of each Board Member is c/o Secretary of the Funds, 570 Carillon Parkway, St. Petersburg, Florida 33716. The Board Members, their ages and their principal occupations for the past five years (their titles may have varied during that period), the number of funds in TAMG the Board oversees, and other board memberships they hold are set forth in the table below.

		Term of
		Office
		and		Number of
		Length		Funds in
		of Time	Principal Occupation(s) During	Complex		Other
Name and Age	Position	Served*	Past 5 Years	Overseen		Directorships
INTERESTED BOARD MEMBER**
John K. Carter (DOB: 4/24/61)	Chairman, Board Member, President, and Chief Executive Officer	2006 — present	Chairman and Board Member (2008 — present), President (2007 — present), Chief Executive Officer (2006 — present), Vice President, Secretary and Chief Compliance Officer (2003 — 2006), TII; Chairman, Board Member, President and Chief Executive Officer, TPP, TPFG, TPFG II and TAAVF (2007 — present); Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Chief Compliance Officer, General Counsel and Secretary (1999 — 2006), Transamerica Funds and TST; Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (2002 — 2006), General Counsel, Secretary and Chief Compliance Officer (2002 — 2006), TIS; President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Director (2000 — present), General Counsel and Secretary (2000 — 2006), Chief Compliance Officer (2004 — 2006), TAM; President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Director (2001 — present), General Counsel and Secretary (2001 — 2006), Transamerica Fund Services, Inc. (“TFS”); Vice President, AFSG Securities Corporation (2001 -present); Senior Vice President, General Counsel and Secretary, Transamerica Index Funds, Inc. (“TIF”) (2002 — 2004); and Vice President, Transamerica Investment Services, Inc. (“TISI”) (2003 — 2005) and TIM (2001 — 2005).		176	N/A

120

		Term of
		Office
		and		Number of
		Length		Funds in
		of Time	Principal Occupation(s) During	Complex		Other
Name and Age	Position	Served*	Past 5 Years	Overseen		Directorships
INDEPENDENT BOARD MEMBERS***
Sandra N. Bane (DOB: 6/13/52)	Board Member	2008 — present	Retired, KPMG (1999 — present); and Board Member, TII (2003 — present), Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (March 2008 — present).		176	Big 5 Sporting Goods (2002 — present); AGL Resources, Inc. (energy services holding company) (2008 — present)
Leo J. Hill (DOB: 3/27/56)	Board Member	2002 — present	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); TII (February 2008 — present); Owner and President, Prestige Automotive Group (2001 — 2005); President, L. J. Hill & Company (1999 — present); Market President, Nations Bank of Sun Coast Florida (1998 — 1999); 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).		176	N/A
Neal M. Jewell (DOB: 2/12/35)	Lead Independent Board Member	2007 — present	Retired (2004 — present); Lead Independent Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present); Lead Independent Board Member, Transamerica Funds, TST and TIS (2007 — present); Lead Independent Board Member, TII (February 2008 — present); and Independent Trustee, EAI Select Managers Equity Fund (a mutual fund) (1996 — 2004).		176	N/A
Russell A. Kimball, Jr. (DOB: 8/17/44)	Board Member	2002 — present	General Manager, Sheraton Sand Key Resort (1975 — present); Board Member, TST (1986 — present); Board Member, Transamerica Funds and TIS (2002 — present); TPP, TPFG, TPFG II and TAAVF (2007 — present); and Board Member, TII (February 2008 — present).		176	N/A

121

		Term of
		Office
		and		Number of
		Length		Funds in
		of Time	Principal Occupation(s) During	Complex		Other
Name and Age	Position	Served*	Past 5 Years	Overseen		Directorships
Eugene M. Mannella (DOB: 2/1/54)	Board Member	2007 — present	Chief Executive Officer, Hedge Fund Services, LLC (hedge fund administration) (January 2008 — present); Self-employed consultant (2006 — present); President, ARAPAHO Partners LLC (limited purpose broker-dealer) (1998 — present); Board Member, TPP, TPFG, TPFG II and TAAVF (1994 — present); Board Member, Transamerica Funds, TIS and TST (2007 — present); Board Member, TII (February 2008 — present); and President, International Fund Services (alternative asset administration) (1993 — 2005).		176	N/A
Norm R. Nielsen (DOB: 5/11/39)	Board Member	2006 — present	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 (February 2008 — present); Director, Iowa City Area Development (1996 — 2004); Director, Iowa Health Systems (1994 — 2003); Director, U.S. Bank (1987 — 1988); and President, Kirkwood Community College (1979 — 2005).		176	Buena Vista University Board of Trustees (2004 — present)
Joyce Galpern Norden (DOB: 6/1/39)	Board Member	2007 — present	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 (February 2008 — present); and Vice President, Institutional Advancement, Reconstructionist Rabbinical College (1996 — 2004).		176	Board of Governors, Reconstructionist Rabbinical College (2007 — present)
Patricia L. Sawyer (DOB: 7/1/50)	Board Member	2007 — present	President and Executive Search Consultant, Smith & Sawyer LLC (consulting) (1989 — present); Board Member, Transamerica Funds and TST (2007 — present); Board Member, TIS (2007 — present); Board Member, TII (2008 — present); and Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present).		176	N/A

122

		Term of
		Office
		and		Number of
		Length		Funds in
		of Time	Principal Occupation(s) During	Complex		Other
Name and Age	Position	Served*	Past 5 Years	Overseen		Directorships
John W. Waechter (DOB: 2/25/52)	Board Member	2005 — present	Attorney, Englander & Fischer, P.A. (March 2008 — present); Retired (2004 — March 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 (February 2008 — present); 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).		176	N/A

*	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.
**	May be deemed an “interested person” (as that term is defined in the 1940 Act) of the Trust because of his employment with TAM or an affiliate of TAM.
***	Independent Board Member means a Board Member who is not an “interested person” (as defined under the 1940 Act) of the Trust.

123

OFFICERS

The mailing address of each officer is c/o Secretary of the Funds, 570 Carillon Parkway, St. Petersburg, Florida 33716. The following table shows information about the officers, including their ages, their positions held with the 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.

		Term of Office and
		Length of Time	Principal Occupation(s) or
Name and Age	Position	Served*	Employment During Past 5 Years
John K. Carter (DOB: 4/24/61)	Chairman, Board Member, President, and Chief Executive Officer	2006 — present	See the table above.
Dennis P. Gallagher (DOB: 12/19/70)	Vice President, General Counsel and Secretary	2006 — present	Vice President, General Counsel and Secretary, TII, Transamerica Funds, TST and TIS (2006 — present); Vice President, General Counsel and Secretary, TPP, TPFG, TPFG II and TAAVF (2007 — present); Director, Senior Vice President, General Counsel and Secretary, TAM and TFS (2006 — present); Assistant Vice President, TCI (2007 — present); and Director, Deutsche Asset Management (1998 — 2006).
Joseph P. Carusone (DOB: 9/8/65)	Vice President, Treasurer and Principal Financial Officer	2007 — present	Vice President, Treasurer and Principal Financial Officer, Transamerica Funds, TST, TIS and TII (2007 — present); Vice President (2007 — present), Treasurer and Principal Financial Officer (2001 — present), TPP, TPFG, TPFG II and TAAVF; Senior Vice President, TAM and TFS (2007 — present); Senior Vice President (January 2008 — present), Vice President (2001 — January 2008); Diversified Investment Advisors, Inc. (“DIA”); Director and President, Diversified Investors Securities Corp. (“DISC”) (2007 — present); Director, Transamerica Financial Life Insurance Company (“TFLIC”) (2004 — present); and Treasurer, Diversified Actuarial Services, Inc. (December 2002 — present).
Christopher A. Staples (DOB: 8/14/70)	Vice President and Chief Investment Officer	2005 — present	Vice President and Chief Investment Officer (2007 — present); Vice President — Investment Administration (2005 — 2007), TII; Vice President and Chief Investment Officer (2007 — present), Senior Vice President — Investment Management (2006 — 2007), Vice President — Investment Management (2005 — 2006), Transamerica Funds, TST and TIS; Vice President and Chief Investment Officer, TPP, TPFG, TPFG II and TAAVF (2007 - present); Director (2005 — present), Senior Vice President — Investment Management (2006 — present) and Chief Investment Officer (2007 — present), TAM; Director, TFS (2005 — present); and Assistant Vice President, Raymond James & Associates (1999 — 2004).

124

		Term of Office and
		Length of Time	Principal Occupation(s) or
Name and Age	Position	Served*	Employment During Past 5 Years
Rick B. Resnik (DOB: 1/24/67)	Vice President, Chief Compliance Officer and Conflicts of Interest Officer	2008 — present	Chief Compliance Officer, TPP, TPFG, TPFG II and TAAVF (1998 — present); Chief Compliance Officer, Transamerica Funds, TST, TIS and TII (January 2008 — present); Vice President and Conflicts of Interest Officer, TPP, TPFG, TPFG II, TAAVF, Transamerica Funds, TST, TIS and TII (June 2008 — present); Senior Vice President and Chief Compliance Officer, TAM (January 2008 — present); Senior Vice President, TFS (January 2008 — present); Director (2000 — present), Vice President and Chief Compliance Officer (1997 — present), DISC; and Assistant Vice President, TFLIC (1999 — present).
Michael A. Masson (DOB: 1/21/71)	Assistant Treasurer	2005 — present	Assistant Treasurer (2007 — present), Assistant Vice President (2005 — 2007), Transamerica Funds, TST, TIS and TII; Assistant Treasurer, TPP, TPFG, TPFG II and TAAVF (2007 — present); Director of Financial Reporting (2007 — present); Assistant Vice President (2005 — 2007), TAM and TFS; and Assistant Vice President, JPMorgan Chase & Co. (1999 — 2005).
Suzanne Valerio-Montemurro (DOB: 8/13/64)	Assistant Treasurer	2007 — present	Assistant Treasurer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (2007 — present); and Vice President, DIA (1998 — present).
Richard E. Shield, Jr. (DOB: 1/3/74)	Tax Officer	2008 — present	Tax Officer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (June 2008 — present); Tax Manager, Jeffrey P. McClanathan, CPA (2006 — 2007) and Gregory, Sharer & Stuart (2005 — 2006); Tax Senior, Kirkland, Russ, Murphy & Tapp, P.A. (2003 — 2005); and Certified Public Accountant, Schultz, Chaipel & Co., LLP (1998 — 2003).

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

Additional information about the Funds’ Board Members can be found in the Statement of Additional Information, available, without charge, upon request, by calling toll free 1-888-233-4339 or on the Funds’ website at www.transamericafunds.com.

125

PROXY VOTING POLICIES AND PROCEDURES AND QUARTERLY PORTFOLIO HOLDINGS

A description of the Transamerica Funds’ proxy voting policies and procedures is available in the Statement of Additional Information of the Funds, available without charge upon request by calling 1-888-233-4339 (toll free) or on the Securities and Exchange Commission website at http://www.sec.gov.

In addition, the Funds are required to file Form N-PX, with their complete proxy voting records for the 12 months ended June 30th, no later than August 31st of each year. The Form is available without charge: (1) from the Funds, upon request by calling 1-888-233-4339; and (2) on the SEC’s website at http://www.sec.gov.

The Funds file their complete schedule of portfolios holdings with the SEC for the first and third quarter of each fiscal year on Form N-Q, which is available on the Commission’s website at http://www.sec.gov. The Funds’ Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

You may also visit the Trust’s website at www.transamericafunds.com for this and other information about the Funds and the Trust.

Important Notice Regarding Delivery of Shareholder Documents

Every year we send shareholders informative materials such as the Transamerica Funds Annual Report, the Transamerica Funds Prospectus, and other required documents that keep you informed regarding your funds. Transamerica Funds will only send one piece per mailing address, a method that saves your Funds money by reducing mailing and printing costs. We will continue to do this unless you tell us not to. To elect to receive individual mailings, simply call a Transamerica Customer Service Representative toll free at 1-888-233-4339, 8 a.m. to 7 p.m. Eastern Time, Monday–Friday. Your request will take effect within 30 days.

126

P.O. Box 9012
Clearwater, FL 33758-9012

Customer Service 1-888-233-4339
P.O. Box 9012 • Clearwater, FL 33758-9012
Distributor: Transamerica Capital, Inc.

EX-99.17.E

Open Funds

Semi-Annual Report
April 30, 2009

www.transamericafunds.com

Customer Service 1-888-233-4339
P.O. Box 9012 • Clearwater, FL 33758-9012
Distributor: Transamerica Capital, Inc.

Dear Fellow Shareholder,

On behalf of Transamerica 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 advisor in the future. We value the trust you have placed in us.

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

We believe it is important to recognize and understand current market conditions in order to provide a context for reading this report. Equity and fixed-income markets have continued to remain volatile over the past six months while exhibiting some signs of price improvement in March and April of 2009. The Federal Reserve has sought to stabilize financial markets by providing liquidity, and the Treasury department has taken an active role in the restructuring of financial companies and markets. At the end of 2008, and during the beginning of 2009, credit markets exhibited some signs of thawing, with improvement in returns, particularly within the high yield sector. While data has been mixed, there has been some evidence of an improvement in housing demand and construction spending. Additionally, consumer confidence has risen as investors look beyond weak economic and unemployment data. Oil prices have risen from their lows in 2008 while most major foreign currencies remain relatively weak against the U.S. dollar. For the six months ending April 30, 2009, the Dow Jones Industrial Average returned -10.78%, the Standard & Poor’s 500 Index returned -8.53%, and the Barclays Capital Aggregate U.S. Bond Index returned 7.74%. Please keep in mind it is 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 advisor is a key resource to help you build a complete picture of your current and future financial needs. Financial advisors are familiar with the market’s history, including long-term returns and volatility of various asset classes. With your financial advisor, you can develop an investment program that incorporates factors such as your goals, your investment timeline, and your risk tolerance.

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

Sincerely,

John K. Carter	Christopher A. Staples
President & Chief Executive Officer	Vice President & Chief Investment Officer
Transamerica Funds	Transamerica Funds

Understanding Your Funds’ Expenses

(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions and redemption fees; and (2) ongoing costs, including management fees, dividend expense on short-sales, and other fund expenses.

The following examples are intended to help you understand your ongoing costs (in dollars and cents) of investing in the Funds’ 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 November 1, 2008 and held for the entire period until April 30, 2009.

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 in the appropriate column for your share class titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLES 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 Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds’ 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 Funds and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Expenses” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the advisory and administrative fees such as fees and expenses of the trustees and their counsel, extraordinary expenses and interest expense.

			Actual Expenses				Hypothetical Expenses (b)
	Beginning		Ending Account		Expenses Paid		Ending Account		Expenses Paid		Annualized
Fund Name	Account Value		Value		During Period (a)		Value		During Period (a)		Expense Ratio
Transamerica Balanced
Class A	$	1,000.00	$	1,033.73	$	8.67	$	1,016.27	$	8.60		1.72	%
Class B		1,000.00		1,029.22		12.33		1,012.65		12.23		2.45
Class C		1,000.00		1,030.94		11.48		1,013.49		11.38		2.28
Transamerica Convertible Securities
Class A		1,000.00		1,020.48		7.41		1,017.46		7.40		1.48
Class B		1,000.00		1,015.74		11.15		1,013.74		11.13		2.23
Class C		1,000.00		1,016.64		10.20		1,014.68		10.19		2.04
Class I		1,000.00		1,022.21		4.36		1,020.48		4.36		0.87
Transamerica Equity
Class A		1,000.00		954.74		7.37		1,017.26		7.60		1.52
Class B		1,000.00		950.15		10.49		1,014.03		10.84		2.17
Class C		1,000.00		951.87		10.50		1,014.03		10.84		2.17
Class I		1,000.00		957.51		3.88		1,020.83		4.01		0.80
Class T		1,000.00		956.23		4.95		1,019.74		5.11		1.02
Transamerica Flexible Income
Class A		1,000.00		1,035.25		7.52		1,017.41		7.45		1.49
Class B		1,000.00		1,031.47		11.13		1,013.84		11.03		2.21
Class C		1,000.00		1,030.99		10.58		1,014.38		10.49		2.10
Class I		1,000.00		1,038.94		4.30		1,020.58		4.26		0.85
Transamerica Growth Opportunities
Class A		1,000.00		1,003.04		8.69		1,016.12		8.75		1.75
Class B		1,000.00		1,000.00		11.90		1,012.89		11.98		2.40
Class C		1,000.00		1,000.00		11.90		1,012.89		11.98		2.40
Class I		1,000.00		1,005.94		4.53		1,020.28		4.56		0.91
Transamerica High Yield Bond
Class A		1,000.00		1,158.30		6.48		1,018.79		6.06		1.21
Class B		1,000.00		1,155.61		10.48		1,015.08		9.79		1.96
Class C		1,000.00		1,155.20		9.83		1,015.67		9.20		1.84
Class I		1,000.00		1,162.46		3.54		1,021.52		3.31		0.66
Transamerica Legg Mason Partners All Cap
Class A		1,000.00		924.23		7.40		1,017.11		7.75		1.55
Class B		1,000.00		920.74		10.48		1,013.88		10.99		2.20
Class C		1,000.00		920.33		10.48		1,013.88		10.99		2.20

1

			Actual Expenses				Hypothetical Expenses (b)
	Beginning		Ending Account		Expenses Paid		Ending Account		Expenses Paid		Annualized
Fund Name	Account Value		Value		During Period (a)		Value		During Period (a)		Expense Ratio
Transamerica Money Market
Class A	$	1,000.00	$	1,002.09	$	3.97	$	1,020.83	$	4.01		0.80	%
Class B		1,000.00		1,000.79		5.11		1,019.69		5.16		1.03
Class C		1,000.00		1,000.66		5.16		1,019.64		5.21		1.04
Class I		1,000.00		1,003.41		2.53		1,022.27		2.56		0.51
Transamerica Science & Technology
Class A		1,000.00		1,017.61		7.65		1,017.21		7.65		1.53
Class B		1,000.00		1,014.92		10.89		1,013.98		10.89		2.18
Class C		1,000.00		1,014.92		10.89		1,013.98		10.89		2.18
Class I		1,000.00		1,020.76		5.31		1,019.54		5.31		1.06
Transamerica Short-Term Bond
Class A		1,000.00		1,056.47		5.56		1,019.39		5.46		1.09
Class C		1,000.00		1,054.31		8.76		1,016.27		8.60		1.72
Class I		1,000.00		1,059.61		3.52		1,021.37		3.46		0.69
Transamerica Small/Mid Cap Value
Class A		1,000.00		1,030.15		8.81		1,016.12		8.75		1.75
Class B		1,000.00		1,027.35		11.76		1,013.19		11.68		2.34
Class C		1,000.00		1,027.76		11.51		1,013.44		11.43		2.29
Class I		1,000.00		1,034.31		4.49		1,020.38		4.46		0.89
Transamerica Templeton Global
Class A		1,000.00		967.72		7.56		1,017.11		7.75		1.55
Class B		1,000.00		964.14		10.71		1,013.88		10.99		2.20
Class C		1,000.00		964.43		10.72		1,013.88		10.99		2.20
Transamerica Value Balanced
Class A		1,000.00		961.26		7.54		1,017.11		7.75		1.55
Class B		1,000.00		958.02		10.68		1,013.88		10.99		2.20
Class C		1,000.00		958.98		10.69		1,013.88		10.99		2.20

(a)	Expenses are calculated using the Funds’ annualized expense ratios (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b)	5% return per year before expenses.

2

Schedules of Investments Composition

At April 30, 2009
(the following charts summarize the Schedule of Investments of each Fund by asset type)
(unaudited)

Transamerica Balanced

Common Stocks	61.7	%
Corporate Debt Securities	19.0
U.S. Government Agency Obligations	15.7
Mortgage-Backed Securities	1.9
Repurchase Agreement	1.0
U.S. Government Obligations	1.0
Municipal Government Obligation	0.3
Other Assets and Liabilities, net W	(0.6	)
Total	100.0	%
Transamerica Convertible Securities
Convertible Bonds	74.7	%
Convertible Preferred Stocks	6.1
Reverse Convertible Bond	4.1
Repurchase Agreement	3.9
Preferred Stock	2.5
Other Assets and Liabilities, net W	8.7
Total	100.0	%
Transamerica Equity
Common Stocks	98.8	%
Repurchase Agreement	1.5
Other Assets and Liabilities, net W	(0.3	)
Total	100.0	%
Transamerica Flexible Income
Corporate Debt Securities	64.1	%
U.S. Government Agency Obligations	16.4
Mortgage-Backed Securities	5.3
Foreign Government Obligation	3.8
Convertible Bonds	3.1
Repurchase Agreement	3.0
U.S. Government Obligations	2.2
Preferred Stock	0.8
Convertible Preferred Stock	0.4
Other Assets and Liabilities, net W	0.9
Total	100.0	%
Transamerica Growth Opportunities
Common Stocks	95.0	%
Repurchase Agreement	6.0
Other Assets and Liabilities, net W	(1.0	)
Total	100.0	%
Transamerica High Yield Bond
Corporate Debt Securities	92.5	%
Repurchase Agreement	3.7
Preferred Stock	0.2
Other Assets and Liabilities, net W	3.6
Total	100.0	%
Transamerica Legg Mason Partners All Cap
Common Stocks	95.0	%
Repurchase Agreement	5.9
Other Assets and Liabilities, net W	(0.9	)
Total	100.0	%
Transamerica Money Market
Commercial Paper	92.0	%
Corporate Debt Securities	6.4
Certificate of Deposit	2.0
Repurchase Agreement	0.0	*
Other Assets and Liabilities, net W	(0.4	)
Total	100.0	%
Transamerica Science & Technology
Common Stocks	98.7	%
Repurchase Agreement	1.3
Other Assets and Liabilities, net W	0.0	*
Total	100.0	%
Transamerica Short-Term Bond
Corporate Debt Securities	77.2	%
U.S. Government Agency Obligations	16.2
Mortgage-Backed Securities	4.6
Repurchase Agreement	2.1
Other Assets and Liabilities, net W	(0.1	)
Total	100.0	%
Transamerica Small/Mid Cap Value
Common Stocks	97.7	%
Repurchase Agreement	3.5
Other Assets and Liabilities, net W	(1.2	)
Total	100.0	%
Transamerica Templeton Global
Common Stocks	98.3	%
Repurchase Agreement	1.2
Other Assets and Liabilities, net W	0.5
Total	100.0	%
Transamerica Value Balanced
Common Stocks	59.3	%
Corporate Debt Securities	19.4
U.S. Government Agency Obligations	17.4
Mortgage-Backed Securities	1.5
U.S. Government Obligations	1.4
Repurchase Agreement	1.2
Municipal Government Obligations	0.6
Other Assets and Liabilities, net W	(0.8	)
Total	100.0	%

W	The Other Assets and Liabilities, net category may include, but is not limited to, Forward Currency contracts, Futures contracts, Swap Agreements, Written options and swaptions, and Securities Sold Short.
*	Amount rounds to less than 0.05% or (0.05%).

3

Transamerica Balanced

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts in thousands)
(unaudited)

	Principal		Value
U.S. GOVERNMENT OBLIGATIONS (1.0%)
U.S. Treasury Bond
4.50%, 05/15/2038	$	48	$	52
U.S. Treasury Inflation Indexed Bond
1.75%, 01/15/2028		425		383
2.50%, 01/15/2029		455		462
Total U.S. Government Obligations (cost $851)				897
U.S. GOVERNMENT AGENCY OBLIGATIONS (15.7%)
Fannie Mae
4.50%, 07/25/2021		572		582
5.00%, 04/25/2034- 09/01/2037		2,100		2,176
5.50%, 04/01/2037- 11/01/2038		2,556		2,651
5.77%, 12/01/2036 *		1,192		1,245
Freddie Mac
4.79%, 03/01/2035 *		458		469
5.00%, 02/01/2024- 01/01/2039		4,608		4,747
6.00%, 12/01/2037		1,409		1,484
Ginnie Mae
4.50%, 02/20/2037 *		789		798
Total U.S. Government Agency Obligations (cost $13,919)				14,152
MORTGAGE-BACKED SECURITIES (1.9%)
American Tower Trust
Series 2007-1A, Class AFX
5.42%, 04/15/2037-144A		450		401
Crown Castle Towers LLC
Series 2006-1A, Class AFX
5.24%, 11/15/2036-144A		739		679
Small Business Administration Trust
Series 2006-1A, Class A
5.31%, 11/15/2036-144A		680		636
Total Mortgage-Backed Securities (cost $1,816)				1,716
MUNICIPAL GOVERNMENT OBLIGATION (0.3%)
State of California
7.55%, 04/01/2039		250		261
Total Municipal Government Obligation (cost $261)
CORPORATE DEBT SECURITIES (19.0%)
Airlines (0.3%)
Delta Air Lines, Inc.
7.57%, 11/18/2010		270		251
Auto Components (0.5%)
Johnson Controls, Inc.
5.25%, 01/15/2011		458		451
Beverages (0.6%)
Anheuser-Busch InBev Worldwide, Inc.
8.20%, 01/15/2039 -144A		283		284
Bacardi, Ltd.
7.45%, 04/01/2014 -144A		230		233
Capital Markets (0.4%)
Goldman Sachs Group, Inc.
6.00%, 05/01/2014		355		354
Chemicals (0.4%)
Dow Chemical Co.
6.13%, 02/01/2011		385		385
Commercial Banks (1.5%)
Barclays Bank PLC
7.70%, 04/25/2018 -144A § Ž		395		249
BB&T Corp.
6.85%, 04/30/2019		335		326
PNC Bank NA
6.00%, 12/07/2017		250		225
6.88%, 04/01/2018		270		257
Wells Fargo Bank NA
5.75%, 05/16/2016		300		267
Commercial Services & Supplies (0.4%)
Allied Waste North America, Inc.
6.50%, 11/15/2010		365		372
Construction Materials (0.5%)
Lafarge SA
6.15%, 07/15/2011		455		442
Consumer Finance (0.4%)
Discover Financial Services
1.86%, 06/11/2010 *		432		381
Containers & Packaging (0.3%)
Rexam PLC
6.75%, 06/01/2013 -144A		315		286
Diversified Financial Services (2.2%)
Bank of America Corp.
5.75%, 12/01/2017		470		384
Bear Stearns Cos., Inc.
7.25%, 02/01/2018		378		386
General Electric Capital Corp.
6.88%, 01/10/2039		290		227
Glencore Funding LLC
6.00%, 04/15/2014 -144A		200		123
Harley-Davidson Funding Corp.
5.25%, 12/15/2012 -144A		235		181
Merrill Lynch & Co., Inc.
5.45%, 02/05/2013		475		416
Pemex Finance, Ltd.
9.03%, 02/15/2011		340		352
Electric Utilities (0.3%)
EDF SA
6.95%, 01/26/2039 -144A		270		285
Energy Equipment & Services (1.4%)
DCP Midstream LLC
9.75%, 03/15/2019 -144A		215		213
Halliburton Co.
6.15%, 09/15/2019		445		472
NGPL Pipeco LLC
6.51%, 12/15/2012 -144A		330		326
Weatherford International, Ltd.
7.00%, 03/15/2038		285		211
Food & Staples Retailing (0.2%)
Stater Brothers Holdings, Inc.
8.13%, 06/15/2012		225		222
Food Products (0.3%)
Michael Foods, Inc.
8.00%, 11/15/2013		320		302
Hotels, Restaurants & Leisure (0.3%)
Royal Caribbean Cruises, Ltd.
8.75%, 02/02/2011		252		236
Insurance (0.4%)
MetLife, Inc.
5.38%, 12/15/2012		320		305
Oil Insurance, Ltd.
7.56%, 06/30/2011 -144A § Ž		270		88
Machinery (0.4%)
PACCAR, Inc.
6.88%, 02/15/2014		320		335

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

4

(all amounts except share amounts in thousands)
(unaudited)

	Principal		Value
Media (0.2%)
Time Warner Cable, Inc.
8.25%, 04/01/2019	$	200	$	221
Metals & Mining (1.5%)
ArcelorMittal
5.38%, 06/01/2013		440		397
BHP Billiton Finance USA, Ltd.
6.50%, 04/01/2019		360		392
Falconbridge, Ltd.
7.35%, 06/05/2012		183		161
Rio Tinto Finance USA, Ltd.
9.00%, 05/01/2019		330		339
Multi-Utilities (0.5%)
Sempra Energy
9.80%, 02/15/2019		380		433
Office Electronics (0.4%)
Xerox Corp.
7.13%, 06/15/2010		400		404
Oil, Gas & Consumable Fuels (2.7%)
Energy Transfer Partners, LP
9.70%, 03/15/2019		275		305
Enterprise Products Operating, LP
7.50%, 02/01/2011		400		411
Hess Corp.
8.13%, 02/15/2019		410		449
Husky Energy, Inc.
6.25%, 06/15/2012		348		346
PetroHawk Energy Corp.
9.13%, 07/15/2013		360		353
TEPPCO Partners, LP
7.00%, 06/01/2067 §		300		163
Valero Logistics Operations, LP
6.88%, 07/15/2012		450		438
Paper & Forest Products (0.4%)
Weyerhaeuser Co.
6.75%, 03/15/2012		380		379
Real Estate Investment Trusts (1.2%)
PPF Funding, Inc.
5.35%, 04/15/2012 -144A		781		572
WEA Finance LLC / WCI Finance LLC
5.40%, 10/01/2012 -144A		520		478
Real Estate Management & Development (0.3%)
Post Apartment Homes, LP
6.30%, 06/01/2013		349		277
Road & Rail (0.2%)
Hertz Corp.
8.88%, 01/01/2014		200		155
Specialty Retail (0.6%)
Staples, Inc.
9.75%, 01/15/2014		415		455
Wireless Telecommunication Services (0.2%)
Centennial Communications Corp.
6.96%, 01/01/2013 *		170		170
Total Corporate Debt Securities (cost $18,200)				17,125

	Shares
COMMON STOCKS (61.7%)
Aerospace & Defense (0.9%)
Boeing Co.		20,000	801
Air Freight & Logistics (2.2%)
CH Robinson Worldwide, Inc.		27,000	1,435
Expeditors International of Washington, Inc.		15,000	521
Auto Components (3.1%)
BorgWarner, Inc.		50,000	1,447
Johnson Controls, Inc.		72,000	1,369
Biotechnology (2.0%)
Gilead Sciences, Inc. ‡		40,000	1,832
Capital Markets (4.4%)
Charles Schwab Corp.		130,000	2,402
T. Rowe Price Group, Inc.		39,843	1,535
Chemicals (2.5%)
Sigma-Aldrich Corp.		50,000	2,192
Communications Equipment (2.3%)
Qualcomm, Inc.		50,000	2,116
Computers & Peripherals (3.1%)
Apple, Inc. ‡		22,000	2,768
Construction & Engineering (1.0%)
Jacobs Engineering Group, Inc. ‡		24,000	913
Diversified Financial Services (1.8%)
JPMorgan Chase & Co.		48,000	1,584
Diversified Telecommunication Services (2.0%)
Verizon Communications, Inc.		60,000	1,820
Electronic Equipment & Instruments (1.0%)
Tyco Electronics, Ltd.		53,300	930
Food & Staples Retailing (1.3%)
Wal-Mart Stores, Inc.		24,000	1,210
Health Care Equipment & Supplies (2.9%)
Becton Dickinson & Co.		22,000	1,330
Covidien, Ltd.		25,000	825
Varian Medical Systems, Inc. ‡		13,000	434
Industrial Conglomerates (1.8%)
General Electric Co.		125,000	1,581
Internet & Catalog Retail (3.2%)
Amazon.com, Inc. ‡		35,000	2,818
Internet Software & Services (2.7%)
Google, Inc. -Class A ‡		6,200	2,455
IT Services (1.7%)
Automatic Data Processing, Inc.		44,000	1,549
Machinery (6.0%)
Caterpillar, Inc.		25,000	890
Kennametal, Inc.		100,000	2,045
PACCAR, Inc.		72,000	2,551
Paper & Forest Products (2.3%)
Weyerhaeuser Co.		60,000	2,116
Real Estate Investment Trusts (0.5%)
Plum Creek Timber Co., Inc.		14,000	483
Road & Rail (1.1%)
Burlington Northern Santa Fe Corp.		15,000	1,012
Semiconductors & Semiconductor Equipment (2.7%)
Intel Corp.		154,000	2,430
Software (7.4%)
Adobe Systems, Inc. ‡		87,000	2,379
Intuit, Inc. ‡		44,000	1,018
Oracle Corp.		115,000	2,224
Salesforce.com, Inc. ‡		23,500	1,006
Trading Companies & Distributors (1.9%)
WW Grainger, Inc.		20,000	1,678
Total Common Stocks (cost $61,849)			55,699

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

5

(all amounts in thousands)
(unaudited)

	Principal		Value
REPURCHASE AGREEMENT (1.0%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $929 on 05/01/2009 •	$	929	$	929
Total Repurchase Agreement (cost $929)
Total Investment Securities (cost $97,825) #				90,779
Other Assets and Liabilities, net				(637	)
Net Assets			$	90,142

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
Ž	The security has a perpetual maturity. The date shown is the next call date.
§	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 04/30/2009.
*	Floating or variable rate note. Rate is listed as of 04/30/2009.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 3.74%, a maturity date of 04/01/2035, and with a market value plus accrued interest of $948.
#	Aggregate cost for federal income tax purposes is $97,825. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $5,707 and $12,753, respectively. Net unrealized depreciation for tax purposes is $7,046.

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 04/30/2009, these securities aggregated $5,034, or 5.58%, of the Fund’s net assets.
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1		Level 2		Level 3		Total Investments in Securities
$	55,699	$	35,080	$	—	$	90,779

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

6

Transamerica Convertible Securities

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
CONVERTIBLE PREFERRED STOCKS (6.1%)
Diversified Financial Services (3.3%)
Vale Capital, Ltd. 5.50% 5		60,900	$	2,132
Pharmaceuticals (2.8%)
Mylan, Inc. 6.50% 5		2,055		1,751
Total Convertible Preferred Stocks (cost $3,536)				3,883
PREFERRED STOCK (2.5%)
Commercial Services & Supplies (2.5%)
Avery Dennison Corp. 7.88% 5		52,000		1,586
Total Preferred Stock (cost $1,674)
REVERSE CONVERTIBLE BOND (4.1%)
Capital Markets (4.1%)
Goldman Sachs Group, Inc. -144A ‡		162,000		2,579
Total Reverse Convertible Bond (cost $2,603)

	Principal
CONVERTIBLE BONDS (74.7%)
Aerospace & Defense (2.6%)
Alliant Techsystems, Inc.
2.75%, 02/15/2024	$	1,575		1,660
Beverages (3.2%)
Molson Coors Brewing Co.
2.50%, 07/30/2013		1,925		2,043
Biotechnology (2.9%)
Gilead Sciences, Inc.
0.63%, 05/01/2013		1,450		1,867
Commercial Services & Supplies (3.1%)
Covanta Holding Corp.
1.00%, 02/01/2027		2,350		1,917
Communications Equipment (1.8%)
Ciena Corp.
0.88%, 06/15/2017		2,250		1,148
Computers & Peripherals (3.0%)
Maxtor Corp.
6.80%, 04/30/2010		1,950		1,921
Construction & Engineering (1.9%)
Quanta Services, Inc.
3.75%, 04/30/2026		1,075		1,226
Containers & Packaging (2.5%)
Sealed Air Corp.
3.00%, 06/30/2033 -144A		1,675		1,581
Diversified Telecommunication Services (3.7%)
Global Crossing, Ltd.
5.00%, 05/15/2011		745		484
Lucent Technologies, Inc.
2.88%, 06/15/2023 Ђ		2,050		1,884
Electronic Equipment & Instruments (3.4%)
Itron, Inc.
2.50%, 08/01/2026		2,137		2,164
Energy Equipment & Services (2.9%)
Transocean, Inc.
1.63%, 12/15/2037		2,005		1,867
Health Care Equipment & Supplies (2.5%)
NuVasive, Inc.
2.25%, 03/15/2013 -144A		1,578		1,608
Industrial Conglomerates (3.0%)
Textron, Inc.
4.50%, 05/01/2013		1,750		1,892
Internet Software & Services (2.0%)
Equinix, Inc.
3.00%, 10/15/2014		1,525		1,252
Leisure Equipment & Products (3.4%)
Hasbro, Inc.
2.75%, 12/01/2021		1,650		2,141
Machinery (3.0%)
Danaher Corp.
Zero Coupon, 01/22/2021		2,120		1,903
Metals & Mining (8.4%)
Arcelormittal
5.00%, 05/15/2014		640		661
Newmont Mining Corp.
1.25%, 07/15/2014		1,375		1,540
U.S. Steel Corp.
4.00%, 05/15/2014		3,100		3,100
Oil, Gas & Consumable Fuels (1.3%)
Quicksilver Resources, Inc.
1.88%, 11/01/2024		940		807
Pharmaceuticals (6.2%)
Allergan, Inc.
1.50%, 04/01/2026		2,505		2,557
Sepracor, Inc.
Zero Coupon, 12/15/2010		1,525		1,331
Software (7.0%)
Nuance Communications, Inc.
2.75%, 08/15/2027		2,710		2,438
Symantec Corp.
0.75%, 06/15/2011		1,860		1,979
Wireless Telecommunication Services (6.9%)
Nextel Communications, Inc.
5.25%, 01/15/2010		1,920		1,884
SBA Communications Corp.
1.88%, 05/01/2013 -144A		3,000		2,520
Total Convertible Bonds (cost $49,484)				47,375
REPURCHASE AGREEMENT (3.9%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $2,471 on 05/01/2009 •		2,471		2,471
Total Repurchase Agreement (cost $2,471)
Total Investment Securities (cost $59,768) #				57,894
Other Assets and Liabilities, net				5,506
Net Assets			$	63,400

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

7

(all amounts in thousands)
(unaudited)

NOTES TO SCHEDULE OF INVESTMENTS:

5	Rate shown reflects the yield at 04/30/2009.
‡	Non-income producing security.
Ђ	Step bond. Interest rate may increase or decrease as the credit rating changes.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 4.73% to 4.80%, maturity dates ranging from 05/01/2035 to 09/01/2035, and with market values plus accrued interests of $2,521.
#	Aggregate cost for federal income tax purposes is $59,768. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $1,896 and $3,770, respectively. Net unrealized depreciation for tax purposes is $1,874.

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 04/30/2009, these securities aggregated $8,288, or 13.07%, of the Fund’s net assets.

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1		Level 2		Level 3		Total Investments in Securities
$	8,048	$	49,846	$	—	$	57,894

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

8

Transamerica Equity

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
COMMON STOCKS (98.8%)
Aerospace & Defense (3.5%)
Raytheon Co.		690,000	$	31,209
Air Freight & Logistics (2.2%)
Expeditors International of Washington, Inc.		565,000		19,611
Auto Components (6.1%)
BorgWarner, Inc.		793,400		22,969
Johnson Controls, Inc.		1,630,000		30,986
Biotechnology (5.7%)
Gilead Sciences, Inc. ‡		1,100,000		50,380
Capital Markets (6.1%)
Charles Schwab Corp.		1,536,280		28,390
T. Rowe Price Group, Inc.		660,000		25,423
Chemicals (13.3%)
Ecolab, Inc.		670,000		25,829
Monsanto Co.		100,000		8,489
Praxair, Inc.		674,000		50,286
Sigma-Aldrich Corp.		770,000		33,757
Commercial Banks (2.9%)
Wells Fargo & Co.		1,280,000		25,613
Communications Equipment (7.6%)
Cisco Systems, Inc. ‡		1,060,000		20,479
Qualcomm, Inc.		1,100,000		46,552
Computers & Peripherals (9.3%)
Apple, Inc. ‡		422,000		53,101
Hewlett-Packard Co.		240,000		8,635
International Business Machines Corp.		206,000		21,262
Construction & Engineering (1.8%)
Jacobs Engineering Group, Inc. ‡		420,000		15,977
Diversified Telecommunication Services (2.3%)
AT&T, Inc.		810,000		20,752
Electrical Equipment (2.0%)
Emerson Electric Co.		511,000		17,394
Electronic Equipment & Instruments (1.6%)
Tyco Electronics, Ltd.		806,285		14,062
Food & Staples Retailing (2.0%)
Wal-Mart Stores, Inc.		350,955		17,688
Health Care Equipment & Supplies (4.8%)
Becton Dickinson & Co.		435,000		26,309
Varian Medical Systems, Inc. ‡		488,225		16,292
Industrial Conglomerates (2.7%)
General Electric Co.		1,925,000		24,351
Internet & Catalog Retail (6.6%)
Amazon.com, Inc. ‡		725,000		58,377
Internet Software & Services (4.7%)
Google, Inc. -Class A ‡		105,000		41,577
IT Services (2.0%)
Automatic Data Processing, Inc.		509,275		17,926
Machinery (4.7%)
Caterpillar, Inc.		385,900		13,730
PACCAR, Inc.		774,000		27,431
Media (2.0%)
Walt Disney Co.		830,000		18,177
Pharmaceuticals (2.1%)
Allergan, Inc.		142,055		6,628
Teva Pharmaceutical Industries, Ltd. ADR		272,840		11,975
Road & Rail (2.7%)
Union Pacific Corp.		490,000		24,079
Total Common Stocks (cost $969,233)				875,696

	Principal
REPURCHASE AGREEMENT (1.5%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $14,045 on 05/01/2009 •	$	14,045		14,045
Total Repurchase Agreement (cost $14,045)
Total Investment Securities (cost $983,278) #				889,741
Other Assets and Liabilities, net				(2,987	)
Net Assets			$	886,754

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 4.23% to 4.44%, maturity dates ranging from 02/01/2035 to 03/01/2035, and with market values plus accrued interests of $14,326.
#	Aggregate cost for federal income tax purposes is $983,278. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $87,768 and $181,305, respectively. Net unrealized depreciation for tax purposes is $93,537.

DEFINITIONS:

ADR American Depositary Receipt

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1		Level 2		Level 3		Total Investments in Securities
$	875,696	$	14,045	$	—	$	889,741

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

9

Transamerica Flexible Income

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts in thousands)
(unaudited)

	Principal		Value
U.S. GOVERNMENT OBLIGATIONS (2.2%)
U.S. Treasury Inflation Indexed Bond
1.75%, 01/15/2028	$	1,415	$	1,272
U.S. Treasury Note
1.75%, 03/31/2014		1,015		1,004
2.75%, 02/15/2019		586		568
Total U.S. Government Obligations (cost $2,910)				2,844
U.S. GOVERNMENT AGENCY OBLIGATIONS (16.4%)
Fannie Mae
4.50%, 07/25/2021		2,678		2,727
5.00%, 06/25/2019 - 03/01/2039		8,313		8,589
5.50%, 07/01/2038 - 11/01/2038		9,020		9,355
Total U.S. Government Agency Obligations (cost $20,196)				20,671
FOREIGN GOVERNMENT OBLIGATION (3.8%)
France Government Bond
4.00%, 04/25/2018	EUR	3,500		4,801
Total Foreign Government Obligation (cost $4,461)
MORTGAGE-BACKED SECURITIES (5.3%)
American Tower Trust
Series 2007-1A, Class C
5.62%, 04/15/2037 -144A	$	2,090		1,766
Crown Castle Towers LLC
Series 2006-1A, Class C
5.47%, 11/15/2036 -144A		2,000		1,810
Small Business Administration Trust
Series 2006-1A, Class D
5.85%, 11/15/2036 -144A		2,054		1,849
Series 2006-1A, Class E
6.17%, 11/15/2036 -144A		1,460		1,299
Total Mortgage-Backed Securities (cost $7,610)				6,724
CORPORATE DEBT SECURITIES (64.1%)
Auto Components (1.6%)
Johnson Controls, Inc.
5.25%, 01/15/2011		1,565		1,540
Tenneco, Inc.
8.13%, 11/15/2015		1,180		472
Automobiles (1.1%)
Daimler Finance North America LLC
8.00%, 06/15/2010		1,360		1,392
Beverages (1.2%)
Anheuser-Busch InBev Worldwide, Inc.
8.20%, 01/15/2039 -144A		1,000		1,002
Bacardi, Ltd.
7.45%, 04/01/2014 -144A		525		532
Capital Markets (0.9%)
Xstrata Finance Dubai, Ltd.
1.27%, 11/13/2009 -144A *		1,095		1,075
Chemicals (3.1%)
Dow Chemical Co.
6.13%, 02/01/2011		1,115		1,114
Lubrizol Corp.
8.88%, 02/01/2019		1,300		1,411
Momentive Performance Materials, Inc.
9.75%, 12/01/2014 Ђ		1,005		344
Nalco Co.
7.75%, 11/15/2011		1,000		1,010
Commercial Banks (3.0%)
Barclays Bank PLC
7.70%, 04/25/2018 -144A § Ž		1,850		1,166
BB&T Corp.
6.85%, 04/30/2019		1,190		1,159
M&I Marshall & Ilsley Bank
1.54%, 12/04/2012 *		2,000		1,431
Construction Materials (3.2%)
CRH America, Inc.
5.30%, 10/15/2013		1,140		959
Lafarge SA
6.15%, 07/15/2011		1,880		1,828
Martin Marietta Materials, Inc.
1.19%, 04/30/2010 *		1,340		1,281
Consumer Finance (1.3%)
Cardtronics, Inc.
9.25%, 08/15/2013 Ђ		835		605
Discover Financial Services
1.86%, 06/11/2010 *		1,130		996
Containers & Packaging (1.7%)
Rexam PLC
6.75%, 06/01/2013 -144A		2,365		2,149
Diversified Financial Services (10.2%)
Bank of America Corp.
5.75%, 12/01/2017		2,200		1,797
8.00%, 01/30/2018 § Ž		2,250		1,278
Bear Stearns Cos., Inc.
7.25%, 02/01/2018		2,000		2,043
General Electric Capital Corp.
6.88%, 01/10/2039		2,000		1,567
Glencore Funding LLC
6.00%, 04/15/2014 -144A		2,000		1,230
GMAC LLC
6.88%, 09/15/2011 -144A		750		653
JPMorgan Chase & Co.
7.90%, 04/30/2018 § Ž		1,750		1,331
Pemex Finance, Ltd.
9.03%, 02/15/2011		2,540		2,630
Sensus Metering Systems, Inc.
8.63%, 12/15/2013		500		425
Diversified Telecommunication Services (1.0%)
Sprint Capital Corp.
7.63%, 01/30/2011		1,300		1,252
Energy Equipment & Services (1.8%)
DCP Midstream LLC
9.75%, 03/15/2019 -144A		725		719
Weatherford International, Ltd.
9.63%, 03/01/2019		1,500		1,619
Food & Staples Retailing (0.8%)
Stater Brothers Holdings, Inc.
8.13%, 06/15/2012		1,000		988
Food Products (1.6%)
ConAgra Foods, Inc.
9.75%, 03/01/2021		325		388
Michael Foods, Inc.
8.00%, 11/15/2013		1,575		1,488
Hotels, Restaurants & Leisure (2.3%)
Carrols Corp.
9.00%, 01/15/2013		500		463
MGM Mirage, Inc.
6.00%, 10/01/2009		1,000		839
Pokagon Gaming Authority
10.38%, 06/15/2014 -144A		650		601
Station Casinos, Inc.
6.88%, 03/01/2016 Џ		700		23

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

10

(all amounts except shares amounts in thousands)
(unaudited)

	Principal		Value
Hotels, Restaurants & Leisure (continued)
Yum! Brands, Inc.
8.88%, 04/15/2011	$	920	$	987
Household Durables (1.0%)
Whirlpool Corp.
8.00%, 05/01/2012		1,265		1,287
Household Products (0.1%)
Sealy Mattress Co.
8.25%, 06/15/2014		250		166
Industrial Conglomerates (0.5%)
Susser Holdings LLC
10.63%, 12/15/2013		582		588
Insurance (2.0%)
MetLife, Inc.
7.72%, 02/15/2019		1,750		1,755
Oil Insurance, Ltd.
7.56%, 06/30/2011 -144A § Ž		2,245		735
IT Services (0.4%)
Aramark Corp.
8.50%, 02/01/2015		500		478
Machinery (2.5%)
PACCAR, Inc.
6.88%, 02/15/2014		1,750		1,832
Polypore, Inc.
8.75%, 05/15/2012		550		426
Titan International, Inc.
8.00%, 01/15/2012		1,200		960
Media (1.7%)
Comcast Cable Holdings LLC
9.80%, 02/01/2012		2,000		2,156
Metals & Mining (2.9%)
Anglo American Capital PLC
9.38%, 04/08/2019 -144A		1,240		1,263
ArcelorMittal
5.38%, 06/01/2013		750		675
Falconbridge, Ltd.
7.35%, 06/05/2012		645		569
Rio Tinto Finance USA, Ltd.
9.00%, 05/01/2019		1,165		1,198
Multiline Retail (1.1%)
Macy’s Retail Holdings, Inc.
5.35%, 03/15/2012		1,480		1,351
Multi-Utilities (1.3%)
Sempra Energy
9.80%, 02/15/2019		1,455		1,659
Oil, Gas & Consumable Fuels (4.9%)
Energy Transfer Partners, LP
9.70%, 03/15/2019		900		1,000
Enterprise Products Operating, LP
8.38%, 08/01/2066 §		1,150		794
Opti Canada, Inc.
8.25%, 12/15/2014		1,800		990
PetroHawk Energy Corp.
9.13%, 07/15/2013		1,255		1,230
Petroleum Development Corp.
12.00%, 02/15/2018		1,000		675
Valero Logistics Operations, LP
6.88%, 07/15/2012		1,500		1,459
Paper & Forest Products (2.1%)
Exopack Holding, Inc.
11.25%, 02/01/2014		2,000		1,400
Weyerhaeuser Co.
6.75%, 03/15/2012		1,300		1,297
Professional Services (0.4%)
FTI Consulting, Inc.
7.75%, 10/01/2016		480		487
Real Estate Investment Trusts (2.7%)
Healthcare Realty Trust, Inc.
8.13%, 05/01/2011		1,480		1,422
WEA Finance LLC / WCI Finance LLC
5.40%, 10/01/2012 -144A		2,100		1,932
Road & Rail (2.5%)
CSX Corp.
6.75%, 03/15/2011		1,675		1,723
Hertz Corp.
10.50%, 01/01/2016		340		241
Kansas City Southern de Mexico SA de CV
7.63%, 12/01/2013		360		295
12.50%, 04/01/2016 -144A		1,000		965
Specialty Retail (2.1%)
Michaels Stores, Inc.
11.38%, 11/01/2016		1,200		594
Penske Auto Group, Inc.
7.75%, 12/15/2016		750		548
Staples, Inc.
9.75%, 01/15/2014		1,435		1,575
Tobacco (0.3%)
Alliance One International, Inc.
11.00%, 05/15/2012		425		414
Wireless Telecommunication Services (0.8%)
Centennial Communications Corp.
6.96%, 01/01/2013 *		1,000		1,003
Total Corporate Debt Securities (cost $87,534)				80,929

	Shares
CONVERTIBLE PREFERRED STOCK (0.4%)
Road & Rail (0.4%)
Kansas City Southern 5.13% 5		880	564
Total Convertible Preferred Stock (cost $751)
PREFERRED STOCK (0.8%)
Diversified Telecommunication Services (0.8%)
Centaur Funding Corp. 9.08% -144A 5		1,661	1,033
Total Preferred Stock (cost $2,153)

	Principal
CONVERTIBLE BONDS (3.1%)
Auto Components (1.0%)
Johnson Controls, Inc.
6.50%, 09/30/2012	$	775	1,396
Containers & Packaging (0.4%)
Sealed Air Corp.
3.00%, 06/30/2033 -144A		500	472
Diversified Telecommunication Services (1.0%)
Lucent Technologies, Inc.
2.88%, 06/15/2023 Ђ		1,350	1,240
Software (0.7%)
Symantec Corp.
0.75%, 06/15/2011		775	824
Total Convertible Bonds (cost $3,391)			3,932

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

11

(all amounts in thousands)
(unaudited)

	Principal		Value
REPURCHASE AGREEMENT (3.0%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $3,739 on 05/01/2009 •	$	3,739	$	3,739
Total Repurchase Agreement (cost $3,739)
Total Investment Securities (cost $132,745) #				125,237
Other Assets and Liabilities, net				1,183
Net Assets			$	126,420

FORWARD FOREIGN CURRENCY CONTRACTS:

				Settlement		Amount in U.S.			Net Unrealized
Currency	(Sold)			Date		Dollars (Sold)			(Depreciation)
Euro		(3,642	)		07/31/2009	$	(4,752	)	$	(64	)

NOTES TO SCHEDULE OF INVESTMENTS:

5	Rate shown reflects the yield at 04/30/2009.
Ž	The security has a perpetual maturity. The date shown is the next call date.
§	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 04/30/2009.
Џ	In default.
*	Floating or variable rate note. Rate is listed as of 04/30/2009.
Ђ	Step bond. Interest rate may increase or decrease as the credit rating changes.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 4.74%, a maturity date of 07/01/2034, and with a market value plus accrued interest of $3,814.
#	Aggregate cost for federal income tax purposes is $132,745. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $3,929 and $11,437, respectively. Net unrealized depreciation for tax purposes is $7,508.

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 04/30/2009, these securities aggregated $22,251, or 17.60%, of the Fund’s net assets.
EUR	Euro
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities								Other Financial Instruments*
Level 1		Level 2		Level 3		Total Investments in Securities		Level 1			Level 2		Level 3
$	1,033	$	124,204	$	—	$	125,237	$	(64	)	$	—	$	—

* Other financial instruments are derivative instruments such as futures, forwards, and swap contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

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

12

Transamerica Growth Opportunities

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
COMMON STOCKS (95.0%)
Aerospace & Defense (4.2%)
Precision Castparts Corp.		77,300	$	5,786
Rockwell Collins, Inc.		21,500		825
Air Freight & Logistics (3.9%)
CH Robinson Worldwide, Inc.		116,900		6,214
Auto Components (4.8%)
BorgWarner, Inc.		196,200		5,680
Johnson Controls, Inc.		98,100		1,865
Capital Markets (6.9%)
Greenhill & Co., Inc.		68,070		5,277
T. Rowe Price Group, Inc.		143,430		5,526
Chemicals (1.8%)
Ecolab, Inc.		70,700		2,725
Communications Equipment (3.8%)
Juniper Networks, Inc. ‡		97,400		2,109
Polycom, Inc. ‡		212,400		3,959
Computers & Peripherals (0.5%)
Data Domain, Inc. ‡		46,050		764
Construction & Engineering (1.2%)
Jacobs Engineering Group, Inc. ‡		49,300		1,875
Construction Materials (1.4%)
Martin Marietta Materials, Inc.		27,200		2,286
Diversified Consumer Services (2.0%)
Strayer Education, Inc.		17,100		3,239
Electrical Equipment (1.9%)
Cooper Industries, Ltd. -Class A		93,500		3,066
Electronic Equipment & Instruments (1.7%)
FLIR Systems, Inc. ‡		123,000		2,728
Health Care Equipment & Supplies (3.5%)
Idexx Laboratories, Inc. ‡		64,300		2,528
Intuitive Surgical, Inc. ‡		15,900		2,285
Varian Medical Systems, Inc. ‡		20,400		681
Health Care Technology (1.2%)
Cerner Corp. ‡		34,600		1,861
Hotels, Restaurants & Leisure (1.1%)
Burger King Holdings, Inc.		105,010		1,716
Internet & Catalog Retail (1.2%)
priceline.com, Inc. ‡		19,310		1,875
Leisure Equipment & Products (2.1%)
Hasbro, Inc.		123,000		3,279
Life Sciences Tools & Services (3.3%)
Covance, Inc. ‡		44,600		1,752
Techne Corp.		59,900		3,427
Machinery (8.8%)
Donaldson Co., Inc.		80,100		2,642
Kennametal, Inc.		246,300		5,037
PACCAR, Inc.		174,900		6,198
Multiline Retail (0.6%)
Nordstrom, Inc.		44,040		997
Oil, Gas & Consumable Fuels (0.8%)
Range Resources Corp.		33,100		1,323
Pharmaceuticals (2.6%)
Allergan, Inc.		89,000		4,153
Professional Services (1.7%)
FTI Consulting, Inc. ‡		50,000		2,744
Real Estate Investment Trusts (3.3%)
Plum Creek Timber Co., Inc.		152,300		5,257
Real Estate Management & Development (1.3%)
St. Joe Co. ‡		85,500		2,127
Software (16.2%)
Activision Blizzard, Inc. ‡		473,300		5,097
Adobe Systems, Inc. ‡		196,825		5,383
Informatica Corp. ‡		190,100		3,023
Intuit, Inc. ‡		204,000		4,719
Macrovision Solutions Corp. ‡		60,900		1,231
Quality Systems, Inc.		30,100		1,614
Salesforce.com, Inc. ‡		103,900		4,448
Specialty Retail (6.2%)
Gap, Inc.		241,595		3,754
Guess, Inc.		235,200		6,124
Textiles, Apparel & Luxury Goods (2.5%)
Carter’s, Inc. ‡		148,500		3,175
Under Armour, Inc. -Class A ‡		32,100		756
Trading Companies & Distributors (4.5%)
WW Grainger, Inc.		84,700		7,105
Total Common Stocks (cost $165,336)				150,235
	Principal
REPURCHASE AGREEMENT (6.0%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $9,526 on 05/01/2009 •	$	9,526		9,526
Total Repurchase Agreement (cost $9,526)
Total Investment Securities (cost $174,862) #				159,761
Other Assets and Liabilities, net				(1,652	)
Net Assets			$	158,109

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

13

(all amounts in thousands)
(unaudited)

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 3.97% to 4.75%, a maturity date of 05/01/2035, and with market values plus accrued interests of $9,719.
#	Aggregate cost for federal income tax purposes is $174,862. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $9,000 and $24,101, respectively. Net unrealized depreciation for tax purposes is $15,101.

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1	Level 2		Level 3		Total Investments in Securities
$150,235	$	9,526	$	—	$	159,761

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

14

Transamerica High Yield Bond

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts in thousands)
(unaudited)

	Principal		Value
CORPORATE DEBT SECURITIES (92.5%)
Aerospace & Defense (1.6%)
Alliant Techsystems, Inc.
6.75%, 04/01/2016	$	4,110	$	3,997
BE Aerospace, Inc.
8.50%, 07/01/2018		1,800		1,629
L-3 Communications Corp.
6.13%, 01/15/2014		1,000		950
Auto Components (0.5%)
Lear Corp.
5.75%, 08/01/2014		3,955		771
TRW Automotive, Inc.
7.00%, 03/15/2014 -144A		2,000		1,110
Automobiles (0.2%)
General Motors Corp.
7.13%, 07/15/2013		1,500		143
7.20%, 01/15/2011		5,265		579
8.25%, 07/15/2023		2,710		244
Beverages (1.9%)
Constellation Brands, Inc.
7.25%, 09/01/2016		4,900		4,728
Cott Beverages USA, Inc.
8.00%, 12/15/2011		3,350		2,479
Building Products (1.9%)
Owens Corning, Inc.
7.00%, 12/01/2036 Ђ		3,690		2,272
Ply Gem Industries, Inc.
11.75%, 06/15/2013		8,520		4,941
Chemicals (3.0%)
Huntsman International LLC
7.38%, 01/01/2015 Ђ		6,400		4,160
Ineos Group Holdings PLC
8.50%, 02/15/2016 -144A		2,570		386
Lyondellbasell Industries AF SCA
8.38%, 08/15/2015 -144A Џ		5,230		105
Nova Chemicals Corp.
5.72%, 11/15/2013 *		5,400		4,238
6.50%, 01/15/2012		3,700		3,367
Commercial Banks (0.4%)
Wells Fargo Capital XV
9.75%, 12/29/2049 ■ Ž		2,000		1,700
Commercial Services & Supplies (0.6%)
Ceridian Corp.
11.25%, 11/15/2015 Ђ		2,930		2,139
12.25%, 11/15/2015 Ώ		325		169
Communications Equipment (0.3%)
Nortel Networks, Ltd.
5.34%, 07/15/2011 Џ		2,230		547
10.75%, 07/15/2016 -144A Џ		1,820		482
Computers & Peripherals (0.9%)
Seagate Technology International
10.00%, 05/01/2014 -144A		450		443
Seagate Technology, Inc.
6.38%, 10/01/2011		2,730		2,498
6.80%, 10/01/2016		950		684
Consumer Finance (2.2%)
Ford Motor Credit Co. LLC
7.88%, 06/15/2010		1,400		1,288
9.88%, 08/10/2011		8,575		7,504
Containers & Packaging (2.6%)
Graphic Packaging International, Inc.
8.50%, 08/15/2011		3,885		3,797
Jefferson Smurfit Corp.
8.25%, 10/01/2012 Џ		7,745		1,626
Owens-Brockway Glass Container, Inc.
6.75%, 12/01/2014		3,535		3,438
Sealed Air Corp.
6.88%, 07/15/2033 -144A		2,100		1,384
Diversified Consumer Services (1.1%)
Service Corp. International 6.75%, 04/01/2015 350 321
6.75%, 04/01/2016 Ђ		4,300		3,870
7.00%, 06/15/2017 Ђ		175		157
Diversified Financial Services (4.2%)
AES Red Oak LLC
9.20%, 11/30/2029		2,125		1,806
Firekeepers Development Authority
13.88%, 05/01/2015 -144A		2,800		2,016
GMAC LLC
6.75%, 12/01/2014 -144A		6,240		4,617
7.25%, 03/02/2011 -144A		3,150		2,771
Hawker Beechcraft Acquisition Company LLC
8.50%, 04/01/2015		3,740		1,262
JPMorgan Chase & Co.
7.90%, 04/30/2018 ■ Ž		2,000		1,522
Nuveen Investments, Inc.
10.50%, 11/15/2015 -144A		4,310		2,177
Diversified Telecommunication Services (6.3%)
Cincinnati Bell, Inc.
7.00%, 02/15/2015		800		760
Fairpoint Communications, Inc.
13.13%, 04/01/2018		5,020		1,374
Frontier Communications Corp.
6.63%, 03/15/2015		1,360		1,244
9.00%, 08/15/2031		5,915		4,703
Qwest Communications International, Inc.
7.50%, 02/15/2014		2,615		2,425
7.50%, 02/15/2014 Ђ		3,900		3,617
Sprint Capital Corp.
6.90%, 05/01/2019		5,570		4,624
Telcordia Technologies, Inc.
4.88%, 07/15/2012 -144A *		4,535		3,333
Windstream Corp.
8.63%, 08/01/2016		3,250		3,234
Electric Utilities (3.7%)
Elwood Energy LLC
8.16%, 07/05/2026		4,035		3,176
Intergen NV
9.00%, 06/30/2017 -144A		5,100		4,845
Ipalco Enterprises, Inc.
7.25%, 04/01/2016 -144A		1,365		1,283
Texas Competitive Electric Holdings Co. LLC
10.25%, 11/01/2015 Ђ		9,045		5,133
Electronic Equipment & Instruments (0.2%)
NXP BV / NXP Funding LLC
3.88%, 10/15/2013 *		2,940		838
Food & Staples Retailing (1.0%)
Supervalu, Inc.
7.50%, 05/15/2012		4,000		3,884
Food Products (1.6%)
Del Monte Corp.
6.75%, 02/15/2015		1,075		1,032
8.63%, 12/15/2012 Ђ		190		194

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

15

	Principal		Value
Food Products (continued)
Smithfield Foods, Inc.
7.75%, 05/15/2013	$	4,375	$	2,881
Tyson Foods, Inc.
7.00%, 05/01/2018		2,400		1,748
8.25%, 10/01/2011		700		711
Health Care Equipment & Supplies (2.4%)
Boston Scientific Corp.
6.25%, 11/15/2015 Ђ		1,100		1,052
6.40%, 06/15/2016		1,125		1,076
Cooper Cos., Inc.
7.13%, 02/15/2015		4,495		4,203
Universal Hospital Services, Inc.
5.94%, 06/01/2015 *		1,500		1,151
8.50%, 06/01/2015		2,300		2,139
Health Care Providers & Services (6.9%)
Community Health Systems, Inc.
8.88%, 07/15/2015		6,250		6,219
HCA, Inc.
8.50%, 04/15/2019 -144A		1,100		1,107
9.25%, 11/15/2016		8,875		8,786
Omnicare, Inc.
6.13%, 06/01/2013		3,900		3,666
6.88%, 12/15/2015		600		563
US Oncology, Inc.
9.00%, 08/15/2012		6,975		6,870
Hotels, Restaurants & Leisure (6.5%)
Harrah’s Operating Co., Inc.
10.00%, 12/15/2018 -144A		6,825		3,208
Mashantucket Western Pequot Tribe
8.50%, 11/15/2015 -144A		6,000		1,290
MGM Mirage, Inc.
5.88%, 02/27/2014		2,500		1,419
6.75%, 04/01/2013		3,000		1,575
7.50%, 06/01/2016		1,625		910
Mohegan Tribal Gaming Authority
7.13%, 08/15/2014		3,275		1,998
Royal Caribbean Cruises, Ltd.
7.00%, 06/15/2013		4,850		3,758
7.25%, 06/15/2016		500		333
Seminole Hard Rock Entertainment, Inc.
3.82%, 03/15/2014 -144A *		5,955		3,929
Seneca Gaming Corp.
7.25%, 05/01/2012		2,000		1,410
Starwood Hotels & Resorts Worldwide, Inc.
6.75%, 05/15/2018		1,600		1,368
Station Casinos, Inc.
6.00%, 04/01/2012 Џ		5,485		1,906
6.50%, 02/01/2014 Џ		2,620		92
Vail Resorts, Inc.
6.75%, 02/15/2014		1,325		1,193
Wynn Las Vegas Capital Corp.
6.63%, 12/01/2014		2,200		1,826
Household Durables (3.8%)
Dr. Horton, Inc.
5.25%, 02/15/2015		2,008		1,667
5.63%, 01/15/2016		1,900		1,568
Jarden Corp.
7.50%, 05/01/2017		3,390		3,000
Meritage Homes Corp.
6.25%, 03/15/2015		5,795		4,229
Mohawk Industries, Inc.
6.63%, 01/15/2016 Ђ		475		403
Pulte Homes, Inc.
5.20%, 02/15/2015		2,000		1,680
7.88%, 08/01/2011		2,500		2,494
Independent Power Producers & Energy Traders (3.4%)
Edison Mission Energy
7.50%, 06/15/2013		3,725		3,166
7.75%, 06/15/2016		2,000		1,585
LSP Energy, LP/LSP Batesville Funding Corp.
7.16%, 01/15/2014		3,346		3,204
NRG Energy, Inc.
7.25%, 02/01/2014		4,020		3,879
7.38%, 01/15/2017		2,000		1,910
IT Services (4.0%)
Aramark Corp.
8.50%, 02/01/2015		2,350		2,244
DI Finance/Dyncorp International
9.50%, 02/15/2013		2,005		1,955
SunGard Data Systems, Inc.
9.13%, 08/15/2013		5,360		5,118
10.25%, 08/15/2015		4,200		3,654
Unisys Corp.
8.00%, 10/15/2012		2,750		1,320
12.50%, 01/15/2016		3,200		1,656
Machinery (0.7%)
Case New Holland, Inc.
7.13%, 03/01/2014		3,225		2,822
Media (6.5%)
CCH I Capital Corp.
11.00%, 10/01/2015 Џ		4,075		316
CSC Holdings, Inc.
7.63%, 07/15/2018		4,650		4,463
8.50%, 06/15/2015 -144A		925		937
DEX Media, Inc.
8.00%, 11/15/2013		2,500		300
DIRECTV Financing Co.
8.38%, 03/15/2013		2,080		2,111
Dish DBS Corp.
6.63%, 10/01/2014		2,740		2,548
7.75%, 05/31/2015		3,080		2,926
Intelsat Corp.
9.25%, 06/15/2016 -144A		2,715		2,620
Intelsat Subsidiary Holding Co., Ltd.
8.50%, 01/15/2013 -144A		420		416
Knight-Ridder, Inc.
5.75%, 09/01/2017		1,675		235
Lamar Media Corp.
6.63%, 08/15/2015		2,025		1,549
9.75%, 04/01/2014 -144A		750		754
Liberty Media Corp.
5.70%, 05/15/2013		2,500		2,100
Medianews Group, Inc.
6.88%, 10/01/2013		1,500		15
Quebecor Media, Inc.
7.75%, 03/15/2016		1,250		1,044
RH Donnelley, Inc.
11.75%, 05/15/2015 -144A		8,507		1,659
Univision Communications, Inc.
9.75%, 03/15/2015 -144A		2,325		360

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

16

(all amounts except amounts in thousands)
(unaudited)

	Principal		Value
Media (continued)
Videotron Ltee
6.88%, 01/15/2014	$	1,825	$	1,773
Metals & Mining (0.8%)
Noranda Aluminium Acquisition Corp.
6.60%, 05/15/2015 *		1,800		630
Steel Dynamics, Inc.
7.38%, 11/01/2012		2,950		2,633
Multiline Retail (1.7%)
Bon-Ton Department Stores, Inc.
10.25%, 03/15/2014		5,125		1,602
JC Penney Corp., Inc.
7.65%, 08/15/2016		2,000		1,810
Macy’s Retail Holdings, Inc.
7.45%, 07/15/2017		4,100		3,530
Multi-Utilities (0.5%)
CMS Energy Corp.
6.55%, 07/17/2017		840		732
6.88%, 12/15/2015		1,340		1,205
Oil, Gas & Consumable Fuels (11.0%)
Chesapeake Energy Corp.
6.88%, 01/15/2016		2,000		1,778
7.00%, 08/15/2014		3,400		3,137
7.25%, 12/15/2018		830		726
7.63%, 07/15/2013		100		96
Connacher Oil And Gas, Ltd.
10.25%, 12/15/2015 -144A		2,480		1,104
Dynegy Holdings, Inc.
7.50%, 06/01/2015		2,975		2,335
7.75%, 06/01/2019		4,440		3,263
El Paso Corp.
7.25%, 06/01/2018		3,100		2,829
Forest Oil Corp.
7.25%, 06/15/2019 -144A		2,000		1,665
7.75%, 05/01/2014		275		259
Kinder Morgan Finance Co.
5.70%, 01/05/2016		5,810		5,040
Mariner Energy, Inc.
8.00%, 05/15/2017		1,555		1,127
Newfield Exploration Co.
6.63%, 09/01/2014		2,175		2,001
7.13%, 05/15/2018		295		267
Opti Canada, Inc.
7.88%, 12/15/2014		2,500		1,344
8.25%, 12/15/2014		2,100		1,155
Peabody Energy Corp.
6.88%, 03/15/2013		100		98
7.38%, 11/01/2016		1,230		1,202
Pioneer Natural Resources Co.
6.65%, 03/15/2017		3,225		2,759
Plains Exploration & Production Co.
7.00%, 03/15/2017		1,700		1,462
7.75%, 06/15/2015		3,000		2,745
Tennessee Gas Pipeline Co.
8.00%, 02/01/2016 -144A		1,000		1,020
Tesoro Corp.
6.25%, 11/01/2012		3,275		2,980
6.63%, 11/01/2015		675		567
Verasun Energy Corp.
9.38%, 06/01/2017 Џ ∞		4,325		238
Whiting Petroleum Corp.
7.00%, 02/01/2014		3,380		2,907
Paper & Forest Products (3.3%)
Abitibi-Consolidated, Inc.
8.55%, 08/01/2010 Џ		1,460		93
8.85%, 08/01/2030 Џ		5,015		301
13.75%, 04/01/2011 -144A Џ		3,200		2,784
Boise Cascade LLC
7.13%, 10/15/2014		896		396
Domtar Corp.
7.88%, 10/15/2011		3,720		3,311
Georgia-Pacific LLC
7.00%, 01/15/2015 -144A		3,825		3,634
7.13%, 01/15/2017 -144A		1,153		1,090
Westvaco Corp.
8.20%, 01/15/2030		2,300		1,758
Real Estate Investment Trusts (1.1%)
Host Hotels & Resorts, Inc.
7.13%, 11/01/2013		3,155		2,966
iStar Financial, Inc.
5.88%, 03/15/2016		5,000		1,600
Real Estate Management & Development (0.4%)
Realogy Corp.
10.50%, 04/15/2014		5,305		1,751
Road & Rail (0.8%)
Hertz Corp.
8.88%, 01/01/2014		4,150		3,216
Semiconductors & Semiconductor Equipment (1.6%)
Freescale Semiconductor, Inc.
8.88%, 12/15/2014		7,345		2,497
Spansion, Inc.
5.84%, 06/01/2013 -144A Џ		3,960		1,584
Stats ChipPAC, Ltd.
6.75%, 11/15/2011		2,750		2,449
Software (0.7%)
First Data Corp.
9.88%, 09/24/2015		4,136		2,859
Textiles, Apparel & Luxury Goods (1.6%)
Levi Strauss & Co.
8.88%, 04/01/2016		1,200		1,062
9.75%, 01/15/2015		5,480		5,178
Wireless Telecommunication Services (0.6%)
Nextel Communications, Inc.
6.88%, 10/31/2013		3,125		2,398
Total Corporate Debt Securities (cost $494,213)				369,256
	Shares
PREFERRED STOCK (0.2%)
Diversified Financial Services (0.2%)
Preferred Blocker, Inc. 7.00% -144A Ђ ▲		2,228		668
Total Preferred Stock (cost $701)
	Principal
REPURCHASE AGREEMENT (3.7%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $14,626 on 05/01/2009 •	$	14,626		14,626
Total Repurchase Agreement (cost $14,626)
Total Investment Securities (cost $509,540) #				384,550
Other Assets and Liabilities, net				14,567
Net Assets			$	399,117

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

17

(all amounts in thousands)
(unaudited)

NOTES TO SCHEDULE OF INVESTMENTS:

▲	Rate shown reflects the yield at 04/30/2009.
Ž	The security has a perpetual maturity. The date shown is the next call date.
Ђ	Step bond. Interest rate may increase or decrease as the credit rating changes.
Џ	In default.
*	Floating or variable rate note. Rate is listed as of 04/30/2009.
Ώ	Payment in-kind. Securities pay interest or dividends in the form of additional bonds or preferred stock.
■	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 04/30/2009.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 0.80% to 4.66%, maturity dates ranging from 10/01/2034 to 12/15/2034, and with market values plus accrued interests of $14,920.
#	Aggregate cost for federal income tax purposes is $509,540. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $4,510 and $129,500, respectively. Net unrealized depreciation for tax purposes is $124,990.

Description	Date of Acquisition	Principal		Cost		Value
Verasun Energy Corp. 9.38%, 06/01/2017	09/21/2007		4,325	$	3,482	$	238

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 04/30/2009, these securities aggregated $54,781, or 13.74%, of the Fund’s net assets.
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1	Level 2		Level 3	Total Investments in Securities
$668	$	383,882	$—	$	384,550

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

18

Transamerica Legg Mason Partners All Cap

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
COMMON STOCKS (95.0%)
Aerospace & Defense (3.3%)
Boeing Co.		17,860	$	715
Honeywell International, Inc.		31,120		972
Northrop Grumman Corp.		6,950		336
Air Freight & Logistics (2.2%)
United Parcel Service, Inc. -Class B		26,690		1,397
Building Products (0.4%)
Simpson Manufacturing Co., Inc.		10,970		244
Capital Markets (4.5%)
Franklin Resources, Inc.		21,900		1,325
Gamco Investors, Inc. -Class A		6,000		301
State Street Corp.		35,290		1,204
Teton Advisors, Inc. Ә ‡		89		♦
Commercial Banks (1.2%)
Comerica, Inc.		29,410		617
East-West Bancorp, Inc.		16,425		112
Communications Equipment (3.5%)
Cisco Systems, Inc. ‡		93,130		1,799
Telefonaktiebolaget LM Ericsson ADR		41,970		358
Computers & Peripherals (2.2%)
International Business Machines Corp.		13,340		1,377
Construction & Engineering (1.5%)
Fluor Corp.		14,320		542
Jacobs Engineering Group, Inc. ‡		6,850		261
Perini Corp. ‡		9,530		165
Diversified Financial Services (5.6%)
Bank of America Corp.		146,380		1,307
JPMorgan Chase & Co.		65,190		2,152
Energy Equipment & Services (6.9%)
Baker Hughes, Inc.		27,250		970
Halliburton Co.		46,940		949
Schlumberger, Ltd.		24,490		1,199
Transocean, Ltd. ‡		5,926		400
Weatherford International, Ltd. ‡		46,550		774
Food & Staples Retailing (2.3%)
Wal-Mart Stores, Inc.		28,460		1,434
Food Products (2.4%)
Unilever PLC ADR		34,949		680
Unilever PLC		41,575		816
Health Care Providers & Services (1.2%)
McKesson Corp.		19,870		735
Hotels, Restaurants & Leisure (1.3%)
Carnival Corp.		23,200		624
Marriott International, Inc. -Class A		8,700		205
Household Durables (1.1%)
Toll Brothers, Inc. ‡		33,600		681
Industrial Conglomerates (3.4%)
General Electric Co.		60,460		765
McDermott International, Inc. ‡		81,380		1,313
Insurance (3.2%)
Allied World Assurance Co. Holdings, Ltd.		16,380		608
Chubb Corp.		36,150		1,408
Internet Software & Services (1.6%)
eBay, Inc. ‡		59,630		982
Life Sciences Tools & Services (0.9%)
ENZO Biochem, Inc. ‡		133,887		549
Machinery (2.7%)
Dover Corp.		21,550		663
PACCAR, Inc.		17,200		610
Parker Hannifin Corp.		9,700		440
Media (2.4%)
Walt Disney Co.		69,520		1,521
Metals & Mining (0.7%)
BHP Billiton, Ltd. ADR		3,200		154
Nucor Corp.		7,440		303
Oil, Gas & Consumable Fuels (4.3%)
Anadarko Petroleum Corp.		23,250		1,001
Chevron Corp.		8,460		559
ConocoPhillips		7,040		289
Exxon Mobil Corp.		10,570		705
Murphy Oil Corp.		3,250		155
Paper & Forest Products (1.1%)
Weyerhaeuser Co.		19,210		677
Pharmaceuticals (8.7%)
Abbott Laboratories		31,990		1,339
Johnson & Johnson		27,780		1,454
Merck & Co., Inc.		51,068		1,238
Novartis AG ADR		38,270		1,451
Professional Services (0.3%)
Robert Half International, Inc.		8,420		202
Real Estate Investment Trusts (0.5%)
Host Hotels & Resorts, Inc.		13,350		103
LaSalle Hotel Properties		18,130		216
Semiconductors & Semiconductor Equipment (14.6%)
Applied Materials, Inc.		159,960		1,954
Novellus Systems, Inc. ‡		52,930		956
Samsung Electronics Co., Ltd. -144A GDR		13,300		3,021
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		133,457		1,411
Texas Instruments, Inc.		86,000		1,553
Varian Semiconductor Equipment Associates, Inc.‡		6,070		155
Verigy, Ltd. ‡		9,211		101
Software (3.7%)
Citrix Systems, Inc. ‡		14,710		420
Lawson Software, Inc. ‡		74,960		404
Microsoft Corp.		73,410		1,486
Specialty Retail (5.2%)
Gap, Inc.		49,070		763
Home Depot, Inc.		71,370		1,878
Penske Auto Group, Inc.		20,450		271
Williams-Sonoma, Inc.		22,840		320
Wireless Telecommunication Services (2.1%)
Vodafone Group PLC ADR		72,007		1,321
Total Common Stocks (cost $71,592)				59,370
	Principal
REPURCHASE AGREEMENT (5.9%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $3,667 on 05/01/2009 •	$	3,667		3,667
Total Repurchase Agreement (cost $3,668)
Total Investment Securities (cost $75,260) #				63,037
Other Assets and Liabilities, net				(546	)
Net Assets			$	62,491

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

19

(all amounts in thousands)
(unaudited)

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
♦	Value is less than $1.
Ә	Securities fair valued as determined in good faith in accordance with procedures established by the Board of Trustees.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 4.84% to 4.90%, a maturity date of 09/01/2034, and with market values plus accrued interests of $3,741.
#	Aggregate cost for federal income tax purposes is $75,260. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $2,800 and $15,023, respectively. Net unrealized depreciation for tax purposes is $12,223.

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 04/30/2009, these securities aggregated $3,020, or 4.83%, of the Fund’s net assets.
ADR	American Depositary Receipt
GDR	Global Depositary Receipt
PLC	Public Limited Company

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1	Level 2		Level 3		Total Investments in Securities
$59,370	$	3,667	$	♦	$	63,037

The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ending April 30, 2009:

Beginning

Net

Accrued

Total Unrealized

Net Transfers

Ending

Balance at

Purchases/

Discounts/

Total Realized

Appreciation/

In/(Out)

Balance at

10/31/2008

(Sales)

(Premiums)

Gain/ (Loss)

(depreciation)

of Level 3

04/30/2009

$0

$

♦

$

—

$

—

$

—

$

—

$

♦

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

20

Transamerica Money Market

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts in thousands)
(unaudited)

	Principal		Value
COMMERCIAL PAPER (92%)
Capital Markets (3.9%)
State Street Corp.
0.30%, 05/15/2009	$	4,600	$	4,599
0.33%, 05/05/2009 - 05/22/2009		7,500		7,500
Chemicals (1.9%)
Ecolab, Inc.
0.55%, 06/05/2009 - 144A		6,000		5,997
Commercial Banks (20.2%)
Bank of Scotland PLC *
1.23%, 06/15/2009		5,900		5,900
1.24%, 06/09/2009 - 06/11/2009		10,400		10,399
Barclays Bank PLC
0.95%, 07/22/2009		2,800		2,794
1.25%, 05/26/2009		3,900		3,897
1.34%, 05/11/2009		4,200		4,198
1.35%, 05/06/2009		4,700		4,699
Royal Bank of Scotland PLC
1.01%, 05/11/2009		5,850		5,848
1.19%, 07/20/2009		3,100		3,092
1.28%, 05/04/2009 - 05/08/2009		3,300		3,300
1.30%, 05/12/2009		3,400		3,399
UBS Finance Delaware LLC
1.00%, 05/04/2009		1,000		1,000
1.03%, 05/21/2009		5,300		5,297
1.20%, 05/29/2009		8,850		8,845
Computers & Peripherals (1.5%)
Hewlett-Packard Co.
0.40%, 06/04/2009 - 144A		4,550		4,548
Consumer Finance (9.7%)
American Express Credit Corp.
0.40%, 05/01/2009 - 05/07/2009		10,000		9,999
0.43%, 05/15/2009 - 05/28/2009		3,450		3,449
0.52%, 06/05/2009		1,250		1,249
Toyota Motor Credit Corp.
0.24%, 05/12/2009		3,300		3,300
0.26%, 05/13/2009		2,000		2,000
0.30%, 06/17/2009		9,000		8,997
0.50%, 05/05/2009		1,050		1,050
Diversified Financial Services (36.4%)
Alpine Securitization
0.33%, 05/20/2009 - 144A		6,950		6,949
0.35%, 06/09/2009 - 144A		1,700		1,699
0.42%, 06/03/2009 - 06/11/2009 - 144A		6,900		6,897
American Honda Finance Corp.
0.75%, 07/07/2009		9,000		8,987
0.80%, 05/18/2009		4,800		4,798
0.85%, 06/02/2009		1,050		1,049
Bank of America Corp.
0.52%, 07/24/2009		2,500		2,500
CAFCO LLC
0.85%, 07/22/2009 - 144A		1,700		1,697
0.90%, 05/14/2009 - 06/08/2009 - 144A		6,900		6,895
Caterpillar Financial Services Corp.
0.32%, 05/04/2009		1,350		1,350
0.43%, 06/01/2009		4,300		4,298
CIESCO LLC
0.85%, 07/22/2009 - 144A		3,600		3,593
0.95%, 07/13/2009 - 144A		3,400		3,393
Citigroup Funding, Inc.
0.30%, 05/04/2009		8,000		8,000
MetLife Funding, Inc.
0.25%, 05/18/2009		1,300		1,300
0.30%, 05/13/2009		4,000		4,000
0.35%, 05/08/2009		7,700		7,699
MetLife Short Term Funding LLC
0.93%, 05/07/2009 - 144A		2,500		2,500
Old Line Funding LLC
0.25%, 05/15/2009 - 144A		3,200		3,200
0.45%, 07/07/2009 - 144A		10,100		10,092
0.60%, 07/15/2009 - 144A		2,275		2,272
PACCAR Financial Corp.
0.45%, 06/15/2009		2,900		2,898
Rabobank USA Financial Corp.
0.42%, 07/15/2009		4,300		4,296
0.50%, 05/11/2009		1,050		1,050
0.65%, 05/26/2009		10,200		10,196
Ranger Funding Co. LLC
0.55%, 05/06/2009 - 144A		1,000		1,000
Food Products (2.9%)
Nestle Capital Corp.
0.32%, 06/16/2009 - 144A		9,000		8,996
Industrial Conglomerates (4.5%)
General Electric Co.
0.32%, 05/19/2009		3,900		3,899
0.33%, 05/27/2009		5,000		4,999
0.37%, 06/22/2009		5,100		5,097
Short-Term Foreign Government Obligation (8.7%)
Province of Ontario Canada
0.30%, 07/08/2009		6,000		5,997
0.35%, 06/12/2009		9,400		9,396
Province of Quebec Canada
0.29%, 07/09/2009 - 144A		2,800		2,798
0.32%, 05/05/2009 - 05/06/2009 - 144A		8,750		8,750
Software (1.9%)
Microsoft Corp.
0.18%, 06/16/2009 - 144A		5,900		5,899
Total Commercial Paper (cost $283,795)				283,795
CORPORATE DEBT SECURITIES (6.4%)
Capital Markets (0.9%)
Goldman Sachs Group, Inc. *
0.53%, 06/23/2009		1,175		1,174
1.32%, 06/23/2009		1,649		1,646
Commercial Banks (0.5%)
Wells Fargo & Co. *
1.42%, 09/15/2009		1,595		1,585
Diversified Financial Services (5.1%)
Bank of America Corp. *
1.33%, 06/12/2009		3,700		3,698
Caterpillar Financial Services Corp. *
1.31%, 05/18/2009		2,150		2,150
General Electric Capital Corp. *
1.42%, 06/15/2009		1,250		1,248
IBM International Group Capital LLC *
1.39%, 07/29/2009		6,990		6,998
Merrill Lynch & Co., Inc. *
1.29%, 05/08/2009		1,750		1,749
Total Corporate Debt Security (cost $20,248)				20,248

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

21

	Principal		Value
CERTIFICATE OF DEPOSIT (2.0%)
Commercial Banks (2.0%)
Bank of America Corp.
0.55%, due 07/27/2009 *	$	6,200	$	6,200
Total Certificate of Deposit (cost $6,200)
REPURCHASE AGREEMENTS (0.0%)
State Street Repurchase Agreement 0.01%, dated 4/30/2009, to be repurchased at $63 on 05/01/2009 •		63		63
Total Repurchase Agreements (cost $63)
Total Investment Securities (cost $310,306) #				310,306
Other Assets and Liabilities, net				(1,228	)
Net Assets			$	309,078

NOTES TO SCHEDULE OF INVESTMENTS:

*	Floating or variable rate note. Rate is listed as of 04/30/2009.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 5.74%, a maturity date of 10/01/2036, and with a market value plus accrued interest of $65.
#	Aggregate cost for federal income tax purposes is $310,306.

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 04/30/2009, these securities aggregated $87,175, or 28.13%, of the Fund’s net assets.
LLC	Limited Liability Company
PLC	Public Limited Company

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1	Level 2		Level 3	Total Investments in Securities
$—	$	310,306	$—	$	310,306

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

22

Transamerica Science & Technology

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
COMMON STOCKS (98.7%)
Aerospace & Defense (2.5%)
Hexcel Corp. ‡		136,000	$	1,304
Biotechnology (1.8%)
Gilead Sciences, Inc. ‡		20,700		948
Communications Equipment (17.2%)
Cisco Systems, Inc. ‡		30,000		580
F5 Networks, Inc. ‡		55,500		1,513
Juniper Networks, Inc. ‡		45,000		974
Palm, Inc. ‡		221,500		2,324
Polycom, Inc. ‡		120,000		2,237
Qualcomm, Inc.		33,000		1,397
Computers & Peripherals (10.1%)
Apple, Inc. ‡		15,900		2,001
Data Domain, Inc. ‡		135,500		2,247
EMC Corp. -Series MA ‡		85,500		1,071
Diversified Consumer Services (1.1%)
Capella Education Co. ‡		11,100		570
Diversified Telecommunication Services (5.2%)
AT&T, Inc.		54,100		1,386
Verizon Communications, Inc.		45,000		1,365
Electronic Equipment & Instruments (6.0%)
DTS, Inc. ‡		32,000		853
FLIR Systems, Inc. ‡		53,500		1,186
Itron, Inc. ‡		24,000		1,104
Health Care Equipment & Supplies (7.0%)
Covidien, Ltd.		24,700		815
Intuitive Surgical, Inc. ‡		9,700		1,394
NuVasive, Inc. ‡		38,000		1,440
Internet & Catalog Retail (6.6%)
Amazon.com, Inc. ‡		29,500		2,375
priceline.com, Inc. ‡		11,400		1,107
Internet Software & Services (9.4%)
Equinix, Inc. ‡		30,200		2,121
Google, Inc. -Class A ‡		3,900		1,544
Vocus, Inc. ‡		74,538		1,267
Pharmaceuticals (2.1%)
Allergan, Inc.		24,200		1,129
Semiconductors & Semiconductor Equipment (1.0%)
Intel Corp.		32,000		505
Software (20.0%)
Activision Blizzard, Inc. ‡		182,500		1,966
Adobe Systems, Inc. ‡		41,000		1,121
Concur Technologies, Inc. ‡		47,500		1,286
Informatica Corp. ‡		63,000		1,002
Nintendo Co., Ltd. ADR		30,200		1,016
Nuance Communications, Inc. ‡		140,000		1,869
Salesforce.com, Inc. ‡		52,500		2,248
Wireless Telecommunication Services (8.8%)
American Tower Corp. -Class A ‡		32,000		1,016
NII Holdings, Inc. ‡		60,600		979
SBA Communications Corp. -Class A ‡		39,000		983
Sprint Nextel Corp. ‡		370,000		1,614
Total Common Stocks (cost $53,572)				51,857
	Principal
REPURCHASE AGREEMENT (1.3%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $693 on 05/01/2009 •	$	693		693
Total Repurchase Agreement (cost $693)
Total Investment Securities (cost $54,265) #				52,550
Other Assets and Liabilities, net				(23	)
Net Assets			$	52,527

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 4.87%, a maturity date of 08/01/2034, and with a market value plus accrued interest of $707.
#	Aggregate cost for federal income tax purposes is $54,265. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $6,034 and $7,749, respectively. Net unrealized depreciation for tax purposes is $1,715.

DEFINITIONS:

ADR American Depositary Receipt

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1	Level 2		Level 3		Total Investments in Securities
$51,857	$	693	$	—	$	52,550

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

23

Transamerica Short-Term Bond

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts in thousands)
(unaudited)

	Principal		Value
U.S. GOVERNMENT AGENCY OBLIGATIONS (16.2%)
Fannie Mae
4.50%, 03/25/2017 - 04/25/2030	$	19,398	$	19,842
5.00%, 10/25/2032 - 06/25/2034		17,354		17,841
5.50%, 03/25/2026		8,194		8,525
Freddie Mac
3.75%, 12/15/2011		4,273		4,304
4.00%, 10/15/2029		4,708		4,764
4.50%, 02/15/2027		4,444		4,556
4.82%, 06/01/2035 *		8,184		8,301
5.00%, 06/15/2027 - 11/15/2032		18,497		18,850
5.50%, 01/15/2029		13,767		14,022
5.53%, 02/01/2038 *		6,241		6,470
5.54%, 08/01/2037 *		2,884		2,981
Ginnie Mae
4.50%, 01/17/2033		5,423		5,514
Total U.S. Government Agency Obligations (cost $112,402)				115,970
MORTGAGE-BACKED SECURITIES (4.6%)
American Tower Trust
Series 2007-1A, Class AFX
5.42%, 04/15/2037 -144A		4,000		3,560
Crown Castle Towers LLC
Series 2006-1A, Class B
5.36%, 11/15/2036 Ә -144A		7,000		6,440
Series 2006-1A, Class C
5.47%, 11/15/2036 Ә -144A		6,000		5,430
Global Signal Trust
Series 2004-2A, Class D
5.09%, 12/15/2014 -144A		9,750		9,603
Small Business Administration Trust
Series 2006-1A, Class A
5.31%, 11/15/2036 -144A		3,700		3,460
Series 2006-1A, Class E
6.17%, 11/15/2036 -144A		5,000		4,450
Total Mortgage-Backed Securities (cost $33,898)				32,943
CORPORATE DEBT SECURITIES (77.2%)
Airlines (0.4%)
Continental Airlines, Inc.
7.49%, 10/02/2010		3,061		2,877
Auto Components (0.9%)
Johnson Controls, Inc.
5.25%, 01/15/2011		6,600		6,495
Automobiles (0.7%)
Daimler Finance North America LLC
7.20%, 09/01/2009		5,200		5,227
Beverages (4.1%)
Anheuser-Busch InBev Worldwide, Inc.
7.20%, 01/15/2014 -144A		2,940		3,065
Bacardi, Ltd.
7.45%, 04/01/2014 -144A		3,475		3,518
Diageo Capital PLC
4.38%, 05/03/2010		4,870		4,919
Foster’s Finance Corp.
6.88%, 06/15/2011 -144A		6,225		6,344
Molson Coors Capital Finance ULC
4.85%, 09/22/2010		5,000		5,092
Sabmiller PLC
6.20%, 07/01/2011 -144A		6,301		6,343
Capital Markets (2.5%)
Goldman Sachs Group, Inc.
1.32%, 11/16/2009 *		6,100		6,019
Morgan Stanley Group, Inc.
1.36%, 01/18/2011 *		6,700		6,241
Xstrata Finance Dubai, Ltd.
1.27%, 11/13/2009 -144A *		5,700		5,594
Chemicals (3.2%)
Cytec Industries, Inc.
5.50%, 10/01/2010		5,880		5,853
Dow Chemical Co.
6.13%, 02/01/2011		7,240		7,233
Lubrizol Corp.
4.63%, 10/01/2009		6,566		6,604
Nalco Co.
7.75%, 11/15/2011		3,250		3,283
Commercial Banks (2.7%)
BB&T Corp.
5.70%, 04/30/2014		3,940		3,878
First Tennessee Bank NA
1.31%, 05/18/2009 *		3,110		3,101
M&I Marshall & Ilsley Bank
1.54%, 12/04/2012 *		5,390		3,857
PNC Funding Corp.
1.18%, 01/31/2012 *		3,900		3,283
Wells Fargo & Co.
4.63%, 08/09/2010		4,800		4,839
Commercial Services & Supplies (0.5%)
Waste Management, Inc.
6.88%, 05/15/2009		3,355		3,357
Construction Materials (3.0%)
CRH America, Inc.
5.63%, 09/30/2011		6,890		6,207
Lafarge SA
6.15%, 07/15/2011		7,900		7,683
Martin Marietta Materials, Inc.
1.19%, 04/30/2010 *		7,645		7,307
Consumer Finance (2.4%)
Discover Financial Services
1.86%, 06/11/2010 *		6,920		6,098
John Deere Capital Corp.
2.04%, 06/10/2011 *		6,125		5,884
Toyota Motor Credit Corp.
4.65%, 01/09/2012 *		5,000		5,090
Containers & Packaging (0.4%)
Rexam PLC
6.75%, 06/01/2013 -144A		2,950		2,681
Diversified Financial Services (8.4%)
American Honda Finance Corp.
1.40%, 01/29/2010 -144A *		4,500		4,485
BAE Systems Holdings, Inc.
6.40%, 12/15/2011 -144A		7,000		7,369
Bank of America Corp.
1.12%, 08/02/2010 *		2,200		2,105
5.38%, 08/15/2011		5,260		5,134
Bear Stearns Cos., Inc.
5.50%, 08/15/2011		2,000		2,064
6.95%, 08/10/2012		5,000		5,264
Caterpillar Financial Services Corp.
1.98%, 06/24/2011 *		7,390		6,988
Credit Suisse USA, Inc.
6.13%, 11/15/2011		5,267		5,519
General Electric Capital Corp.
1.26%, 07/27/2012 *		1,400		1,209
5.88%, 02/15/2012		4,890		4,983

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

24

	Principal		Value
Diversified Financial Services (continued)
Harley-Davidson Funding Corp.
5.00%, 12/15/2010 -144A	$	7,700	$	7,025
PACCAR Financial Corp.
4.64%, 01/12/2011 *		5,000		4,989
Pemex Finance, Ltd.
9.03%, 02/15/2011		2,160		2,236
Diversified Telecommunication Services (2.2%)
Sprint Capital Corp.
7.63%, 01/30/2011		3,200		3,084
Telefonica Europe BV
7.75%, 09/15/2010		6,250		6,563
Verizon Global Funding Corp.
7.38%, 09/01/2012		5,500		6,020
Electric Utilities (0.7%)
PSEG Power LLC
7.75%, 04/15/2011		4,780		5,064
Energy Equipment & Services (2.6%)
Allied Waste North America, Inc.
5.75%, 02/15/2011		6,375		6,407
NGPL Pipeco LLC
6.51%, 12/15/2012 -144A		6,470		6,388
Plains All American Pipeline, LP
4.75%, 08/15/2009		1,230		1,219
Rockies Express Pipeline LLC
5.10%, 08/20/2009 -144A *		4,740		4,742
Food & Staples Retailing (2.7%)
Kroger Co.
8.05%, 02/01/2010		7,012		7,238
New Albertsons, Inc.
6.95%, 08/01/2009		3,617		3,640
Safeway, Inc.
6.50%, 03/01/2011		5,000		5,244
Stater Brothers Holdings, Inc.
8.13%, 06/15/2012		2,900		2,864
Food Products (3.0%)
ConAgra Foods, Inc.
7.88%, 09/15/2010		5,880		6,174
Dole Food Co., Inc.
8.63%, 05/01/2009 Ђ		6,000		6,000
Michael Foods, Inc.
8.00%, 11/15/2013		3,215		3,038
UST, Inc.
6.63%, 07/15/2012		6,460		6,508
Hotels, Restaurants & Leisure (1.6%)
Carrols Corp.
9.00%, 01/15/2013		2,000		1,850
Royal Caribbean Cruises, Ltd.
8.75%, 02/02/2011		3,000		2,805
Yum! Brands, Inc.
8.88%, 04/15/2011		6,200		6,656
Household Durables (1.0%)
Whirlpool Corp.
8.00%, 05/01/2012		7,125		7,249
Insurance (1.1%)
MetLife, Inc.
5.38%, 12/15/2012		7,000		6,659
Oil Insurance, Ltd.
7.56%, 06/30/2011 -144A ■ Ž		3,250		1,063
IT Services (0.8%)
Western Union Co.
5.40%, 11/17/2011		5,500		5,578
Machinery (0.8%)
Case New Holland, Inc.
6.00%, 06/01/2009		2,500		2,488
PACCAR, Inc.
6.88%, 02/15/2014		2,500		2,617
Media (3.8%)
British Sky Broadcasting Group PLC
8.20%, 07/15/2009		6,000		6,072
Time Warner, Inc.
1.15%, 11/13/2009 *		6,406		6,363
Viacom, Inc.
1.67%, 06/16/2009 *		7,000		6,973
5.75%, 04/30/2011		7,045		7,043
Metals & Mining (3.1%)
Anglo American Capital PLC
9.38%, 04/08/2014 -144A		3,500		3,632
Arcelormittal
5.38%, 06/01/2013		4,500		4,051
BHP Billiton Finance USA, Ltd.
5.00%, 12/15/2010		6,000		6,236
Falconbridge, Ltd.
7.35%, 06/05/2012		3,585		3,164
Rio Tinto Finance USA, Ltd.
8.95%, 05/01/2014		4,795		4,963
Multiline Retail (1.4%)
JC Penney Corp., Inc.
8.00%, 03/01/2010		6,175		6,209
Macy’s Retail Holdings, Inc.
5.35%, 03/15/2012		4,170		3,806
Multi-Utilities (0.8%)
Sempra Energy
7.95%, 03/01/2010		5,500		5,661
Office Electronics (0.9%)
Xerox Corp.
7.13%, 06/15/2010		6,250		6,314
Oil, Gas & Consumable Fuels (11.1%)
Anadarko Finance Co.
6.75%, 05/01/2011		6,460		6,657
DCP Midstream LLC
7.88%, 08/16/2010		6,900		7,024
EnCana Corp.
6.30%, 11/01/2011		5,100		5,329
Enterprise Products Operating, LP
7.50%, 02/01/2011		8,100		8,324
Hess Corp.
6.65%, 08/15/2011		4,215		4,419
7.00%, 02/15/2014		2,450		2,657
Husky Energy, Inc.
6.25%, 06/15/2012		6,700		6,655
Kinder Morgan Energy Partners, LP
6.75%, 03/15/2011		6,450		6,620
Marathon Oil Corp.
8.38%, 05/01/2012		6,000		6,410
Ras Laffan Liquefied Natural Gas Co., Ltd.
3.44%, 09/15/2009 -144A		2,040		2,034
Teppco Partners, LP
7.63%, 02/15/2012		6,800		6,716
Weatherford International, Inc.
5.95%, 06/15/2012		7,305		7,309
Williams Cos., Inc.
3.21%, 10/01/2010 -144A *		1,450		1,363
6.38%, 10/01/2010 -144A		1,100		1,089

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

25

	Principal		Value
Oil, Gas & Consumable Fuels (continued)
XTO Energy, Inc.
5.00%, 08/01/2010	$	5,770	$	5,835
Paper & Forest Products (1.0%)
Weyerhaeuser Co.
6.75%, 03/15/2012		7,200		7,185
Real Estate Investment Trusts (4.2%)
BRE Properties, Inc.
5.75%, 09/01/2009		6,000		5,990
Federal Realty Investment Trust
8.75%, 12/01/2009		2,680		2,673
Healthcare Realty Trust, Inc.
8.13%, 05/01/2011		3,000		2,883
Kimco Realty Corp.
4.62%, 05/06/2010		5,000		4,822
PPF Funding, Inc.
5.35%, 04/15/2012 -144A		4,000		2,929
Simon Property Group, LP
4.88%, 03/18/2010		6,265		6,143
Wea Finance LLC / WCI Finance LLC
5.40%, 10/01/2012 -144A		5,000		4,600
Real Estate Management & Development (0.7%)
Post Apartment Homes, LP
7.70%, 12/20/2010		5,000		4,859
Road & Rail (2.8%)
CSX Corp.
6.75%, 03/15/2011		6,580		6,767
Erac USA Finance Co.
7.95%, 12/15/2009 -144A		6,875		6,684
Union Pacific Corp.
3.63%, 06/01/2010		5,030		5,004
6.13%, 01/15/2012		2,000		2,046
Specialty Retail (1.1%)
Home Depot, Inc.
1.45%, 12/16/2009 *		3,000		2,970
Staples, Inc.
7.75%, 04/01/2011		1,500		1,571
9.75%, 01/15/2014		2,950		3,237
Wireless Telecommunication Services (1.3%)
Centennial Communications Corp.
6.96%, 01/01/2013 *		3,750		3,759
Vodafone Group PLC
7.75%, 02/15/2010		5,000		5,186
Total Corporate Debt Securities (cost $552,233)				552,736
REPURCHASE AGREEMENT (2.1%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $15,512 on 05/01/2009 •		15,512		15,512
Total Repurchase Agreement (cost $15,512)
Total Investment Securities (cost $714,045) #				717,161
Other Assets and Liabilities, net				(1,024	)
Net Assets			$	716,137

NOTES TO SCHEDULE OF INVESTMENTS:

Ž	The security has a perpetual maturity. The date shown is the next call date.
Ә	Securities fair valued as determined in good faith in accordance with procedures established by the Board of Trustees.
■	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 04/30/2009.
*	Floating or variable rate note. Rate is listed as of 04/30/2009.
Ђ	Step bond. Interest rate may increase or decrease as the credit rating changes.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 3.63% to 3.80%, a maturity date of 05/01/2035, and with market values plus accrued interests of $15,822.
#	Aggregate cost for federal income tax purposes is $714,045. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $13,551 and $10,435, respectively. Net unrealized appreciation for tax purposes is $3,116.

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 04/30/2009, these securities aggregated $113,888, or 16.03%, of the Fund’s net assets.
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company
ULC	Underwriters’ Laboratories of Canada

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1	Level 2		Level 3		Total Investments in Securities
$—	$	717,161	$	—	$	717,161

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

26

Transamerica Small/Mid Cap Value

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
COMMON STOCKS (97.7%)
Aerospace & Defense (1.0%)
Alliant Techsystems, Inc. ‡		32,630	$	2,599
Auto Components (1.3%)
Tenneco, Inc. ‡		1,179,671		3,610
Chemicals (5.0%)
Intrepid Potash, Inc. ‡		294,090		7,261
Terra Industries, Inc.		233,031		6,175
Commercial Banks (3.9%)
Bank of Hawaii Corp.		132,255		4,647
City National Corp.		160,900		5,889
Commercial Services & Supplies (2.0%)
Energysolutions, Inc.		288,000		2,794
Republic Services, Inc. -Class A		126,000		2,646
Communications Equipment (6.4%)
Arris Group, Inc. ‡		673,180		7,183
Brocade Communications Systems, Inc. ‡		727,855		4,207
Harmonic Lightwaves, Inc. ‡		836,792		6,134
Electric Utilities (4.2%)
ITC Holdings Corp.		88,075		3,834
NV Energy, Inc.		400,700		4,107
Portland General Electric Co.		192,410		3,515
Electrical Equipment (2.5%)
General Cable Corp. ‡		248,560		6,746
Energy Equipment & Services (1.7%)
Superior Energy Services, Inc. ‡		246,585		4,737
Health Care Equipment & Supplies (4.1%)
Hologic, Inc. ‡		432,000		6,419
West Pharmaceutical Services, Inc.		147,400		4,813
Health Care Providers & Services (1.8%)
Mednax, Inc. ‡		137,000		4,918
Health Care Technology (2.1%)
Allscripts-Misys Healthcare Solutions, Inc.		452,765		5,623
Hotels, Restaurants & Leisure (5.0%)
Cheesecake Factory ‡		283,415		4,923
Penn National Gaming, Inc. ‡		153,715		5,229
Starwood Hotels & Resorts Worldwide, Inc.		157,500		3,285
Insurance (5.6%)
HCC Insurance Holdings, Inc.		306,210		7,325
PartnerRe, Ltd.		117,020		7,980
Internet Software & Services (2.1%)
Valueclick, Inc. ‡		540,848		5,733
IT Services (1.9%)
NeuStar, Inc. -Class A ‡		265,766		5,052
Leisure Equipment & Products (1.6%)
Pool Corp.		236,100		4,217
Life Sciences Tools & Services (2.0%)
Charles River Laboratories International, Inc.‡		200,865		5,554
Machinery (3.4%)
Clarcor, Inc.		167,700		5,212
Watts Water Technologies, Inc. -Class A		179,325		3,992
Media (1.4%)
Lamar Advertising Co. -Class A ‡		226,800		3,833
Oil, Gas & Consumable Fuels (4.8%)
Comstock Resources, Inc. ‡		125,265		4,317
PetroHawk Energy Corp. ‡		367,595		8,675
Pharmaceuticals (1.9%)
Sepracor, Inc. ‡		356,195		5,062
Professional Services (6.2%)
FTI Consulting, Inc. ‡		180,000		9,878
Manpower, Inc.		157,500		6,787
Real Estate Investment Trusts (12.5%)
Annaly Capital Management, Inc.		616,742		8,678
Host Hotels & Resorts, Inc.		1,071,000		8,236
Kilroy Realty Corp.		179,155		3,859
Omega Healthcare Investors, Inc.		464,500		7,302
Potlatch Corp.		194,340		5,716
Real Estate Management & Development (2.2%)
St. Joe Co. ‡		236,675		5,887
Road & Rail (1.4%)
Kansas City Southern ‡		251,900		3,841
Software (1.5%)
Macrovision Solutions Corp. ‡		201,000		4,064
Specialty Retail (1.4%)
Childrens Place Retail Stores, Inc. ‡		133,720		3,803
Textiles, Apparel & Luxury Goods (0.7%)
Skechers U.S.A., Inc. -Class A ‡		173,140		2,026
Thrifts & Mortgage Finance (1.7%)
People’s United Financial, Inc.		290,465		4,537
Trading Companies & Distributors (4.0%)
Beacon Roofing Supply, Inc. ‡		224,392		3,568
WESCO International, Inc. ‡		282,800		7,353
Total Common Stocks (cost $230,347)				263,781
	Principal
REPURCHASE AGREEMENT (3.5%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $9,457 on 05/01/2009 •	$	9,457		9,457
Total Repurchase Agreement (cost $9,457)
Total Investment Securities (cost $239,804) #				273,238
Other Assets and Liabilities, net				(3,313	)
Net Assets			$	269,925

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

27

(all amounts in thousands)
(unaudited)

NOTES TO SCHEDULE OF INVESTMENTS:
‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Obligation with a zero coupon interest rate, a maturity date of 06/24/2009, and with a market value plus accrued interest of $9,650.
#	Aggregate cost for federal income tax purposes is $239,804. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $49,371 and $15,937, respectively. Net unrealized appreciation for tax purposes is $33,434.

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1	Level 2		Level 3		Total Investments in Securities
$263,781		$9,457		$—		$273,238

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

28

Transamerica Templeton Global

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
COMMON STOCKS (98.3%)
Australia (1.0%)
Alumina, Ltd. §		96,049	$	104
Brambles, Ltd.		55,748		240
National Australia Bank, Ltd.		34,025		510
Austria (0.6%)
Telekom Austria AG		41,880		555
Bermuda (0.7%)
Tyco Electronics, Ltd.		36,945		644
Brazil (1.2%)
Cia Vale do Rio Doce -Class B ADR		15,230		251
Empresa Brasileira de Aeronautica SA ADR ‡		25,360		411
Petroleo Brasileiro SA -Class A ADR		13,480		364
China (0.4%)
China Telecom Corp., Ltd.		670,000		333
Denmark (0.5%)
Vestas Wind Systems ‡		6,730		444
France (6.7%)
Accor SA		7,040		300
AXA SA ‡		36,800		621
France Telecom SA		47,180		1,053
GDF Suez		14,448		522
Michelin -Class B		10,407		537
Sanofi-Aventis SA		16,139		935
Suez Environnement SA ‡		3,787		58
Total SA		21,742		1,103
Vivendi		26,410		715
Germany (6.0%)
Bayerische Motoren Werke AG		21,040		731
Celesio AG		19,660		437
Deutsche Post AG		42,130		488
E.ON AG ADR ‡		24,540		825
Merck KGAA		6,870		618
Muenchener Rueckversicherungs AG		4,810		666
SAP AG		17,410		669
Siemens AG		11,760		793
Hong Kong (1.0%)
Cheung Kong Holdings, Ltd.		47,000		490
Hutchison Whampoa, Ltd.		59,000		350
Ireland (0.6%)
CRH PLC		21,612		564
Israel (1.3%)
Check Point Software Technologies ‡		24,050		558
Teva Pharmaceutical Industries, Ltd. ADR		12,495		548
Italy (1.6%)
Autogrill SpA		32,781		251
ENI SpA ADR		17,185		733
UniCredit SpA		173,709		430
Japan (5.0%)
Fujifilm Holdings Corp.		16,700		423
Konica Minolta Holdings, Inc.		54,500		443
Mabuchi Motor Co., Ltd.		12,400		561
Mitsubishi UFJ Financial Group, Inc. ADR		32,270		175
Nintendo Co., Ltd.		2,200		587
Olympus Corp.		27,800		451
Promise Co., Ltd.		26,150		344
Sony Corp. ADR		10,560		273
Takeda Pharmaceutical Co., Ltd.		8,300		295
Toyota Motor Corp.		13,100		511
USS Co., Ltd.		7,410		334
Korea, Republic of (1.3%)
KB Financial Group, Inc. ADR ‡		8,150		260
Samsung Electronics Co., Ltd. -144A GDR		4,030		915
Netherlands (2.1%)
Akzo Nobel NV		5,540		234
ING Groep NV		32,710		306
ING Groep NV ADR		9,330		85
Koninklijke Philips Electronics NV		33,360		607
Randstad Holding NV		12,460		288
Reed Elsevier NV		26,984		298
Norway (1.0%)
Aker Kvaerner ASA		17,210		106
Statoilhydro ASA		11,180		213
Telenor ASA		88,850		557
Singapore (2.1%)
DBS Group Holdings, Ltd. ADR		4,010		102
DBS Group Holdings, Ltd.		128,400		823
Flextronics International, Ltd. ‡		61,830		240
Singapore Telecommunications, Ltd.		378,000		654
South Africa (0.6%)
Sasol, Ltd. ADR		16,850		507
Spain (1.5%)
Banco Santander SA		25,719		247
Telefonica SA		57,454		1,096
Sweden (0.6%)
Loomis AB		5,150		44
Nordea Bank AB		67,010		492
Switzerland (4.9%)
ACE, Ltd.		18,590		861
Adecco SA		12,770		506
Lonza Group AG		7,370		679
Nestle SA ADR		24,375		791
Novartis AG ADR		16,740		635
Roche Holding AG		2,640		334
Swiss Reinsurance		11,470		276
UBS AG		17,015		238
Taiwan (1.3%)
Chunghwa Telecom Co., Ltd. ADR		11,348		214
Lite-On Technology Corp. GDR		30,712		246
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		62,781		664
Turkey (0.7%)
Turkcell Iletisim Hizmet AS ADR		47,270		600
United Kingdom (10.7%)
Aviva PLC		92,990		434
BAE Systems PLC		112,160		595
BP PLC ADR		18,170		772
British Sky Broadcasting Group PLC		79,790		574
Cadbury PLC		38,348		288
Compass Group PLC		92,320		442
GlaxoSmithKline PLC		44,309		688
Group 4 Securicor PLC		161,830		452
HSBC Holdings PLC ADR		310		11
HSBC Holdings PLC		38,729		275
Kingfisher PLC		123,010		339
Kingfisher PLC ADR		52,500		279
Pearson PLC		31,090		325
Rolls-Royce Group PLC -Class C Ə ‡		10,352,713		15
Rolls-Royce Group PLC § ‡		120,661		604
Royal Dutch Shell PLC -Class B		29,130		671
Tesco PLC		103,780		518

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

29

	Shares		Value
United Kingdom (continued)
Unilever PLC		34,487	$	676
Vodafone Group PLC		618,342		1,141
Wolseley PLC ‡		14,163		257
United States (44.9%)
Allergan, Inc.		6,730		314
Amazon.com, Inc. ‡		34,000		2,738
Apple, Inc. ‡		20,100		2,529
AT&T, Inc.		37,000		948
Automatic Data Processing, Inc.		23,330		821
Becton Dickinson & Co.		14,000		846
BorgWarner, Inc.		37,300		1,080
Caterpillar, Inc.		17,695		630
Charles Schwab Corp.		70,285		1,298
Cisco Systems, Inc. ‡		50,000		966
Ecolab, Inc.		31,500		1,214
Emerson Electric Co.		23,500		800
Expeditors International of Washington, Inc.		26,000		902
General Electric Co.		92,000		1,164
Gilead Sciences, Inc. ‡		51,500		2,359
Google, Inc. -Class A ‡		5,000		1,980
Hewlett-Packard Co.		11,000		396
International Business Machines Corp.		9,500		980
Jacobs Engineering Group, Inc. ‡		20,000		761
Johnson Controls, Inc.		75,000		1,426
Monsanto Co.		4,300		365
PACCAR, Inc.		36,000		1,275
Praxair, Inc.		31,000		2,314
Qualcomm, Inc.		51,500		2,179
Raytheon Co.		31,000		1,402
Sigma-Aldrich Corp.		36,000		1,579
T. Rowe Price Group, Inc.		30,000		1,156
Union Pacific Corp.		23,000		1,130
Varian Medical Systems, Inc. ‡		22,015		735
Wal-Mart Stores, Inc.		15,985		806
Walt Disney Co.		38,000		832
Wells Fargo & Co.		58,800		1,176
Total Common Stocks (cost $111,883)				85,823

	Principal
REPURCHASE AGREEMENTS (1.2%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $1,069 on 05/01/2009 •	$	1,069		1,069
Total Repurchase Agreements (cost $1,069)
Total Investment Securities (cost $112,952) #				86,892
Other Assets and Liabilities, net				372
Net Assets			$	87,264

	Percentage of
	Total Investments			Value
INVESTMENTS BY INDUSTRY:
Chemicals		6.6	%	$	5,706
Diversified Telecommunication Services		6.2			5,410
Commercial Banks		5.1			4,501
Pharmaceuticals		5.1			4,367
Oil, Gas & Consumable Fuels		5.0			4,363
Computers & Peripherals		4.8			4,151
Communications Equipment		3.6			3,145
Auto Components		3.5			3,043
Aerospace & Defense		3.5			3,027
Industrial Conglomerates		3.4			2,914
Insurance		3.3			2,858
Media		3.2			2,744
Internet & Catalog Retail		3.1			2,738
Capital Markets		3.1			2,692
Biotechnology		2.7			2,359
Health Care Equipment & Supplies		2.3			2,032
Internet Software & Services		2.3			1,980
Machinery		2.2			1,905
Electronic Equipment & Instruments		2.2			1,868
Software		2.2			1,814
Food Products		2.0			1,755
Wireless Telecommunication Services		2.0			1,741
Semiconductors & Semiconductor Equipment		1.9			1,579
Air Freight & Logistics		1.6			1,390
Food & Staples Retailing		1.5			1,324
Electrical Equipment		1.4			1,244
Automobiles		1.4			1,242
Road & Rail		1.3			1,130
Hotels, Restaurants & Leisure		1.1			993

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

30

(all amounts in thousands)
(unaudited)

	Percentage of
	Total Investments			Value
INVESTMENTS BY INDUSTRY (continued):
Specialty Retail		1.1	%	$	952
Electric Utilities		0.9			825
IT Services		0.9			821
Professional Services		0.9			794
Construction & Engineering		0.9			761
Commercial Services & Supplies		0.9			736
Life Sciences Tools & Services		0.8			679
Multi-Utilities		0.7			580
Construction Materials		0.6			564
Real Estate Management & Development		0.6			490
Office Electronics		0.5			443
Health Care Providers & Services		0.5			437
Diversified Financial Services		0.4			391
Metals & Mining		0.4			355
Consumer Finance		0.4			344
Household Durables		0.3			273
Trading Companies & Distributors		0.3			257
Energy Equipment & Services		0.1			106
Investment Securities, at Value		98.8			85,823
Short-Term Investments		1.2			1,069
Total Investments		100.0	%	$	86,892

NOTES TO SCHEDULE OF INVESTMENTS:
‡	Non-income producing security.
§	Illiquid. These securities aggregated to $708, or 0.81%, of the Fund’s net assets.
Ə	Securities fair valued as determined in good faith in accordance with procedures established by the Board of Trustees.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation, with an interest rate of 0.95%, maturity date of 06/15/2034, and with a market value plus accrued interest of $1,091.
#	Aggregate cost for federal income tax purposes is $112,952. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $3,519 and $29,579, respectively. Net unrealized depreciation for tax purposes is $26,060.
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 04/30/2009, these securities aggregated $915, or 1.05%, of the Fund’s net assets.
ADR	American Depositary Receipt
GDR	Global Depositary Receipt
PLC	Public Limited Company

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1	Level 2		Level 3		Total Investments in Securities
$85,808		$1,084		$—		$86,892

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

31

Transamerica Value Balanced

SCHEDULE OF INVESTMENTS
At April 30, 2009
(all amounts in thousands)
(unaudited)

	Principal		Value
U.S. GOVERNMENT OBLIGATIONS (1.4%)
U.S. Treasury Bond
4.50%, 05/15/2038	$	6	$	6
U.S. Treasury Inflation Indexed Bond
1.75%, 01/15/2028		122		109
2.50%, 01/15/2029		124		126
U.S. Treasury Inflation Indexed Note
1.38%, 07/15/2018		49		48
U.S. Treasury Note
2.75%, 02/15/2019		76		74
Total U.S. Government Obligations (cost $349)				363
U.S. GOVERNMENT AGENCY OBLIGATIONS (17.4%)
Fannie Mae
4.72%, 10/01/2035 *		318		327
5.00%, 05/01/2018- 03/01/2039		1,395		1,438
5.50%, 07/01/2019- 01/01/2038		501		521
6.00%, 08/01/2036- 12/01/2037		658		688
Freddie Mac
5.00%, 04/01/2018- 11/15/2032		942		975
5.50%, 09/01/2018- 11/01/2018		131		136
5.53%, 09/01/2037 *		334		349
Total U.S. Government Agency Obligations (cost $4,300)				4,434
MORTGAGE-BACKED SECURITIES (1.5%)
American Tower Trust
Series 2007-1A, Class C
5.62%, 04/15/2037-144A		155		131
Crown Castle Towers LLC
Series 2006-1A, Class AFX
5.24%, 11/15/2036-144A		115		106
Small Business Administration Trust
Series 2006-1A, Class A
5.31%, 11/15/2036-144A		150		140
Total Mortgage-Backed Securities (cost $411)				377
MUNICIPAL GOVERNMENT OBLIGATIONS (0.6%)
Metropolitan Transportation Authority
7.34%, 11/15/2039		71		76
State of California
7.55%, 04/01/2039		75		78
Total Municipal Government Obligations (cost $149)				154
CORPORATE DEBT SECURITIES (19.4%)
Airlines (0.6%)
Continental Airlines, Inc.
7.49%, 10/02/2010		75		71
Delta Air Lines, Inc.
7.57%, 11/18/2010		85		79
Auto Components (0.5%)
Johnson Controls, Inc.
5.25%, 01/15/2011		124		122
Beverages (0.3%)
Anheuser-Busch InBev Worldwide, Inc.
8.20%, 01/15/2039 -144A		80		80
Capital Markets (0.4%)
Goldman Sachs Group, Inc.
6.00%, 05/01/2014		105		105
Chemicals (0.8%)
Lubrizol Corp.
8.88%, 02/01/2019		100		109
Potash Corp. of Saskatchewan, Inc.
6.50%, 05/15/2019		88		91
Commercial Banks (1.5%)
Barclays Bank PLC
7.70%, 04/25/2018 -144A n Ž		120		76
BB&T Corp.
6.85%, 04/30/2019		100		97
PNC Bank NA
6.88%, 04/01/2018		110		105
Wells Fargo Bank NA
4.75%, 02/09/2015		130		112
Construction Materials (1.2%)
CRH America, Inc.
5.30%, 10/15/2013		100		84
Lafarge SA
6.15%, 07/15/2011		125		122
Martin Marietta Materials, Inc.
1.19%, 04/30/2010 *		112		107
Consumer Finance (0.3%)
Discover Financial Services
1.86%, 06/11/2010 *		95		84
Diversified Financial Services (2.7%)
American Honda Finance Corp.
1.40%, 01/29/2010 -144A *		130		130
Bank of America Corp.
5.75%, 12/01/2017		130		106
Bear Stearns Cos., Inc.
7.25%, 02/01/2018		103		105
General Electric Capital Corp.
6.88%, 01/10/2039		80		63
Glencore Funding LLC
6.00%, 04/15/2014 -144A		80		49
Merrill Lynch & Co., Inc.
5.45%, 02/05/2013		150		130
Pemex Finance, Ltd.
9.03%, 02/15/2011		100		104
Electric Utilities (0.3%)
EDF SA
6.95%, 01/26/2039 -144A		80		84
Energy Equipment & Services (1.0%)
DCP Midstream LLC
9.75%, 03/15/2019 -144A		60		60
Halliburton Co.
6.15%, 09/15/2019		120		127
Weatherford International, Ltd.
7.00%, 03/15/2038		80		59
Food & Staples Retailing (0.4%)
Stater Brothers Holdings, Inc.
8.13%, 06/15/2012		100		99
Food Products (0.3%)
Michael Foods, Inc.
8.00%, 11/15/2013		90		85
Hotels, Restaurants & Leisure (0.3%)
Royal Caribbean Cruises, Ltd.
8.75%, 02/02/2011		70		65
Insurance (0.5%)
MetLife, Inc.
5.38%, 12/15/2012		96		91
Oil Insurance, Ltd.
7.56%, 06/30/2011 -144A n Ž		80		26
Machinery (0.3%)
PACCAR, Inc.
6.88%, 02/15/2014		85		89
Media (0.5%)
Time Warner Cable, Inc.
6.75%, 07/01/2018		125		127

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

32

(all amounts except share amounts in thousands)
(unaudited)

	Principal		Value
Metals & Mining (1.9%)
Anglo American Capital PLC
9.38%, 04/08/2019 -144A	$	106	$	108
ArcelorMittal
5.38%, 06/01/2013		130		117
BHP Billiton Finance USA, Ltd.
6.50%, 04/01/2019		96		104
Falconbridge, Ltd.
7.35%, 06/05/2012		55		49
Rio Tinto Finance USA, Ltd.
9.00%, 05/01/2019		100		103
Multi-Utilities (0.5%)
Sempra Energy
9.80%, 02/15/2019		105		120
Oil, Gas & Consumable Fuels (2.3%)
EnCana Corp.
6.50%, 05/15/2019		71		73
Energy Transfer Partners, LP
9.70%, 03/15/2019		75		83
Enterprise Products Operating, LP
7.50%, 02/01/2011		120		123
Hess Corp.
8.13%, 02/15/2019		110		121
Husky Energy, Inc.
6.25%, 06/15/2012		105		104
PetroHawk Energy Corp.
9.13%, 07/15/2013		100		98
Paper & Forest Products (1.1%)
Celulosa Arauco y Constitucion SA
8.63%, 08/15/2010		171		178
Weyerhaeuser Co.
6.75%, 03/15/2012		100		100
Real Estate Investment Trusts (0.6%)
WEA Finance LLC / WCI Finance LLC
5.40%, 10/01/2012 -144A		168		155
Real Estate Management & Development (0.3%)
Post Apartment Homes, LP
6.30%, 06/01/2013		91		72
Road & Rail (0.2%)
Hertz Corp.
8.88%, 01/01/2014		75		58
Specialty Retail (0.6%)
Staples, Inc.
9.75%, 01/15/2014		115		126
Total Corporate Debt Securities (cost $5,121)				4,935

	Shares
COMMON STOCKS (59.3%)
Aerospace & Defense (2.4%)
Boeing Co.		6,006	241
Raytheon Co.		8,215	372
Air Freight & Logistics (0.7%)
United Parcel Service, Inc. -Class B		3,200	167
Auto Components (2.1%)
BorgWarner, Inc.		18,153	526
Capital Markets (1.5%)
BlackRock, Inc. -Class A		1,530	224
Eaton Vance Corp.		6,000	164
Chemicals (2.1%)
Praxair, Inc.		7,200	537
Computers & Peripherals (2.6%)
Hewlett-Packard Co.		9,800	352
International Business Machines Corp.		3,150	325
Construction & Engineering (0.8%)
Jacobs Engineering Group, Inc. ‡		5,418	206
Diversified Financial Services (3.5%)
CME Group, Inc. -Class A		1,660	367
JPMorgan Chase & Co.		15,500	512
Diversified Telecommunication Services (1.4%)
AT&T, Inc.		14,087	361
Electronic Equipment & Instruments (0.9%)
Tyco Electronics, Ltd.		13,700	239
Food Products (1.2%)
Kraft Foods, Inc. -Class A		13,600	318
Health Care Equipment & Supplies (2.0%)
Becton Dickinson & Co.		8,423	509
Household Products (2.6%)
Colgate-Palmolive Co.		7,000	413
Kimberly-Clark Corp.		5,000	246
IT Services (0.6%)
Automatic Data Processing, Inc.		4,000	141
Life Sciences Tools & Services (1.7%)
Thermo Fisher Scientific, Inc. ‡		12,000	421
Machinery (0.7%)
Caterpillar, Inc.		5,100	181
Media (1.9%)
Walt Disney Co.		22,500	493
Metals & Mining (1.2%)
Cia Vale do Rio Doce -Class B ADR		18,500	305
Multi-Utilities (0.7%)
Dominion Resources, Inc.		6,000	181
Oil, Gas & Consumable Fuels (8.3%)
Anadarko Petroleum Corp.		11,000	474
BP PLC ADR		9,485	403
Exxon Mobil Corp.		10,700	713
XTO Energy, Inc.		15,000	520
Paper & Forest Products (1.0%)
Weyerhaeuser Co.		7,280	257
Pharmaceuticals (4.2%)
Bristol-Myers Squibb Co.		29,000	557
Merck & Co., Inc.		5,300	128
Teva Pharmaceutical Industries, Ltd. ADR		9,200	404
Real Estate Investment Trusts (2.4%)
Plum Creek Timber Co., Inc.		17,600	608
Road & Rail (2.2%)
Union Pacific Corp.		11,400	560
Software (2.2%)
Oracle Corp.		17,500	338
Symantec Corp. ‡		12,605	217
Specialty Retail (3.1%)
Gap, Inc.		24,790	385
Home Depot, Inc.		15,500	407
Textiles, Apparel & Luxury Goods (0.6%)
Nike, Inc. -Class B		3,100	163
Tobacco (4.6%)
Lorillard, Inc.		8,000	505
Philip Morris International, Inc.		18,750	680
Total Common Stocks (cost $15,097)			15,120

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

33

(all amounts in thousands)
(unaudited)

	Principal		Value
REPURCHASE AGREEMENT (1.2%)
State Street Repurchase Agreement 0.01%, dated 04/30/2009, to be repurchased at $294 on 05/01/2009 •	$	294	$	294
Total Repurchase Agreement (cost $294)
Total Investment Securities (cost $25,721) #				25,677
Other Assets and Liabilities, net				(205	)
Net Assets			$	25,472

NOTES TO SCHEDULE OF INVESTMENTS:
‡	Non-income producing security.
Ž	The security has a perpetual maturity. The date shown is the next call date.
n	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 04/30/2009.
*	Floating or variable rate note. Rate is listed as of 04/30/2009.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 3.74%, a maturity date of 04/01/2035, and with a market value plus accrued interest of $300.
#	Aggregate cost for federal income tax purposes is $25,721. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $1,822 and $1,866, respectively. Net unrealized depreciation for tax purposes is $44.
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 04/30/2009, these securities aggregated $1,145, or 4.49%, of the Fund’s net assets.
ADR	American Depositary Receipt
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

The following is a summary of the fair valuations according to the inputs used as of April 30, 2009 in valuing the Fund’s assets and liabilities.

Investments in Securities
Level 1	Level 2		Level 3		Total Investments in Securities
$15,120		$10,557		$—		$25,677

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

34

STATEMENTS OF ASSETS AND LIABILITIES
At April 30, 2009
(all amounts except per share amounts in thousands)
(unaudited)

				Transamerica									Transamerica
	Transamerica			Convertible			Transamerica			Transamerica			Growth
	Balanced			Securities			Equity			Flexible Income			Opportunities
Assets:
Investment securities, at value	$	89,850		$	55,423		$	875,696		$	121,498		$	150,235
Repurchase agreement, at value		929			2,471			14,045			3,739			9,526
Receivables:
Investment securities sold		212			10,568			2,236			3,054			887
Shares of beneficial interest sold		17			160			376			99			26
Interest		385			247			—			1,918			—
Dividends		72			112			837			11			25
Dividend reclaims		60			—			369			—			—
Other		41			8			422			16			18
	$	91,566		$	68,989		$	893,981		$	130,335		$	160,717
Liabilities:
Accounts payable and accrued liabilities:
Investment securities purchased		950			5,490			5,261			3,591			2,377
Shares of beneficial interest redeemed		261			11			672			104			30
Management and advisory fees		58			40			462			73			75
Distribution and service fees		46			10			139			16			32
Trustees fees		42			9			427			17			19
Transfer agent fees		29			3			141			5			47
Administration fees		1			1			14			2			2
Other		37			25			111			43			26
Unrealized depreciation on forward foreign currency contracts		—			—			—			64			—
		1,424			5,589			7,227			3,915			2,608
Net assets	$	90,142		$	63,400		$	886,754		$	126,420		$	158,109
Net assets consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	106,968		$	106,092		$	1,618,988		$	205,727		$	321,268
Undistributed net investment income (loss)		131			261			2,980			533			69
Accumulated net realized gain (loss) from investments		(9,899	)		(41,075	)		(641,518	)		(72,260	)		(148,119	)
Net unrealized appreciation (depreciation) on:
Investment securities		(7,064	)		(1,878	)		(93,731	)		(7,516	)		(15,109	)
Translation of assets and liabilities denominated in foreign currencies		6			—			35			(64	)		—
Net assets	$	90,142		$	63,400		$	886,754		$	126,420		$	158,109
Net assets by class:
Class A	$	51,144		$	10,890		$	270,559		$	15,386		$	42,495
Class B		22,921			2,297			44,507			8,431			16,006
Class C		16,077			6,255			37,088			6,752			9,820
Class I					43,958			454,741			95,851			89,788
Class T								79,859
Shares outstanding:
Class A		3,255			1,513			41,383			2,124			6,448
Class B		1,466			322			7,298			1,163			2,611
Class C		1,033			880			6,054			935			1,595
Class I					6,102			68,414			13,184			13,236
Class T								4,364
Net asset value per share:
Class A	$	15.71		$	7.20		$	6.54		$	7.24		$	6.59
Class B		15.63			7.14			6.10			7.25			6.13
Class C		15.57			7.11			6.13			7.22			6.16
Class I					7.20			6.65			7.27			6.78
Class T								18.30
Maximum offering price per share (a)
Class A	$	16.62		$	7.56		$	6.92		$	7.60		$	6.97
Investment securities, at cost	$	96,896		$	57,297		$	969,233		$	129,006		$	165,336
Repurchase agreement, at cost	$	929		$	2,471		$	14,045		$	3,739		$	9,526

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

35

				Transamerica					Transamerica			Transamerica
	Transamerica			Legg Mason			Transamerica		Science &			Short-Term
	High Yield Bond			Partners All Cap			Money Market		Technology			Bond
Assets:
Investment securities, at value	$	369,924		$	59,370		$	310,243	$	51,857		$	701,649
Repurchase agreement, at value		14,626			3,667			63		693			15,512
Receivables:
Investment securities sold		7,464			82			—		—			6,321
Shares of beneficial interest sold		855			23			653		16			9,992
Interest		12,033			—			54		—			8,539
Dividends		38			44			—		47			—
Dividend reclaims		—			26			—		—			—
Other		26			28			12		4			—
	$	404,966		$	63,240		$	311,025	$	52,617		$	742,013
Liabilities:
Accounts payable and accrued liabilities:
Investment securities purchased		5,521			570			—		—			25,138
Shares of beneficial interest redeemed		19			47			1,767		4			187
Management and advisory fees		180			21			59		27			339
Distribution and service fees		24			36			44		3			43
Trustees fees		28			28			14		4			3
Transfer agent fees		5			26			—		4			—
Administration fees		6			1			5		1			11
Dividends from short sales		—			—			26		—			70
Other		66			20			32		47			85
		5,849			749			1,947		90			25,876
Net assets	$	399,117		$	62,491		$	309,078	$	52,527		$	716,137
Net assets consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	554,727		$	82,354		$	308,995	$	67,381		$	731,358
Undistributed (accumulated) net investment income (loss)		2,107			179			83		(109	)		—
Accumulated net realized gain (loss) from investments		(32,715	)		(7,806	)		—		(13,028	)		(18,339	)
Net unrealized appreciation (depreciation) on:
Investment securities		(125,002	)		(12,236	)		—		(1,717	)		3,118
Net assets	$	399,117		$	62,491		$	309,078	$	52,527		$	716,137
Net assets by class:
Class A	$	33,996		$	26,920		$	155,852	$	3,839		$	41,188
Class B		9,921			23,175			45,161		1,640
Class C		10,753			12,396			69,453		1,259			52,943
Class I		344,447						38,612		45,789			622,006
Shares outstanding:
Class A		4,925			2,964			155,852		1,327			4,224
Class B		1,438			2,733			45,161		603
Class C		1,562			1,463			69,453		463			5,438
Class I		49,593						38,612		15,496			64,893
Net asset value per share:
Class A	$	6.90		$	9.08		$	1.00	$	2.89		$	9.75
Class B		6.90			8.48			1.00		2.72
Class C		6.88			8.47			1.00		2.72			9.73
Class I		6.95						1.00		2.95			9.59
Maximum offering price per share (a)
Class A	$	7.24		$	9.61		$	1.00	$	3.06		$	10.00
Investment securities, at cost	$	494,914		$	71,593		$	310,243	$	53,572		$	698,533
Repurchase agreement, at cost	$	14,626		$	3,667		$	63	$	693		$	15,512

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

36

	Transamerica			Transamerica
	Small/Mid Cap			Templeton			Transamerica
	Value			Global			Value Balanced
Assets:
Investment securities, at value	$	263,781		$	85,823		$	25,383
Repurchase agreement, at value		9,457			1,069			294
Foreign currency, at value		—			303			—
Receivables:
Investment securities sold		4,298			106			360
Shares of beneficial interest sold		1,284			12			3
Interest		—			—			103
Dividends		206			260			33
Dividend reclaims		—			186			—
Other		15			119			16
	$	279,041		$	87,878		$	26,192
Liabilities:
Due to custodian		—			—			1
Accounts payable and accrued liabilities:
Investment securities purchased		6,701			233			608
Shares of beneficial interest redeemed		1,957			118			44
Management and advisory fees		164			8			7
Distribution and service fees		127			35			12
Trustees fees		18			120			16
Transfer agent fees		116			57			10
Administration fees		4			1			—
Other		29			42			22
		9,116			614			720
Net assets	$	269,925		$	87,264		$	25,472
Net assets consist of:
Shares of beneficial interest, unlimited shares authorized, no par value	$	470,247		$	424,150		$	31,994
Undistributed net investment income (loss)		570			239			412
Accumulated net realized gain (loss) from investments		(234,319	)		(311,003	)		(6,883	)
Net unrealized appreciation (depreciation) on:
Investment securities		33,427			(26,114	)		(51	)
Translation of assets and liabilities denominated in foreign currencies		—			(8	)		—
Net assets	$	269,925		$	87,264		$	25,472
Net assets by class:
Class A	$	142,546		$	66,649		$	16,077
Class B		29,937			8,209			4,592
Class C		87,795			12,406			4,803
Class I		9,647
Shares outstanding:
Class A		11,198			3,541			1,905
Class B		2,436			463			546
Class C		7,229			704			571
Class I		755
Net asset value per share:
Class A	$	12.73		$	18.82		$	8.44
Class B		12.29			17.75			8.41
Class C		12.14			17.62			8.41
Class I		12.78
Maximum offering price per share (a)
Class A	$	13.47		$	19.92		$	8.93
Investment securities, at cost	$	230,347		$	111,883		$	25,427
Repurchase agreement, at cost	$	9,457		$	1,069		$	294
Foreign currency, at cost	$	—		$	313		$	—

(a) Includes the maximum selling commission (represented as a percentage of offering price) which is reduced on certain levels of sales as set forth in the Prospectus. Net asset value per share for Classes B, C, and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.

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

37

STATEMENTS OF OPERATIONS
For the period ended April 30, 2009
(all amounts in thousands)
(unaudited)

				Transamerica									Transamerica
	Transamerica			Convertible			Transamerica			Transamerica			Growth
	Balanced			Securities			Equity			Flexible Income			Opportunities
Investment income:
Dividend income	$	502		$	624		$	8,172		$	150		$	828
Withholding taxes on foreign dividends		—			—			—			—			(2	)
Interest income		1,115			1,439			—			4,904			—
Securities lending income (net)		68			42			290			31			231
		1,685			2,105			8,462			5,085			1,057
Expenses:
Management and advisory		352			362			3,040			486			554
Distribution and service:
Class A		83			19			442			24			65
Class B		126			12			227			40			79
Class C		78			31			185			29			45
Transfer agent:
Class A		94			13			635			20			188
Class B		66			4			191			14			85
Class C		24			5			102			7			37
Class I					—	(a)		—	(a)		—	(a)		—	(a)
Class T								83
Printing and shareholder reports		7			8			71			11			12
Custody		13			10			74			24			17
Administration		9			10			83			13			14
Legal		1			1			13			2			2
Audit and tax		10			10			12			10			10
Trustees		1			1			9			2			1
Registration		31			18			30			20			18
Other		2			2			11			2			2
Total expenses		897			506			5,208			704			1,129
Class expense reimbursed:
Class A		—			—			(172	)		—			(97	)
Class B		(6	)		—			(107	)		—			(47	)
Class C		—			—			(33	)		—			(14	)
Total reimbursement of expenses		(6	)		—			(312	)		—			(158	)
Net expenses		891			506			4,896			704			971
Net investment income		794			1,599			3,566			4,381			86
Net realized gain (loss) on transactions from:
Investment securities		(9,799	)		(23,702	)		(177,917	)		(25,032	)		(16,098	)
Foreign currency transactions		—			—			—			457			—
		(9,799	)		(23,702	)		(177,917	)		(24,575	)		(16,098	)
Net increase (decrease) in unrealized appreciation (depreciation) on:
Investment securities		10,935			21,341			122,375			24,070			16,538
Translation of assets and liabilities denominated in foreign currencies		1			—			6			(111	)		—
Change in unrealized appreciation (depreciation)		10,936			21,341			122,381			23,959			16,538
Net realized and unrealized gain (loss):		1,137			(2,361	)		(55,536	)		(616	)		440
Net increase (decrease) In net assets resulting from operations	$	1,931		$	(762	)	$	(51,970	)	$	3,765		$	526

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

38

				Transamerica Legg						Transamerica
	Transamerica High			Mason Partners All			Transamerica			Science &			Transamerica
	Yield Bond			Cap			Money Market			Technology			Short-Term Bond
Investment income:
Dividend income	$	60		$	862		$	—		$	131		$	—
Withholding taxes on foreign dividends		(2	)		(30	)		—			—			(2	)
Interest income		25,438			—			1,548			—			14,095
Securities lending income (net)		183			25			229			32			38
		25,679			857			1,777			163			14,131
Expenses:
Management and advisory		1,252			250			601			181			1,626
Distribution and service:
Class A		48			43			266			6			19
Class B		43			127			217			8			—
Class C		31			62			335			6			94
Transfer agent:
Class A		26			69			139			13			2
Class B		13			84			38			10
Class C		5			28			28			4			3
Class I		—	(a)					—	(a)		—	(a)		—	(a)
Printing and shareholder reports		35			6			22			5			38
Custody		32			17			23			6			33
Administration		42			6			30			5			52
Legal		6			1			4			1			7
Audit and tax		10			10			11			10			10
Trustees		4			1			2			—			5
Registration		22			19			41			37			30
Money market guarantee insurance		—			—			48			—			—
Other		6			2			6			1			6
Total expenses		1,575			725			1,811			293			1,925
Fund expense reimbursed		—			—			(19	)		—			—
Class expense reimbursed:
Class A		—			(44	)		(192	)		(12	)		—
Class B		—			(58	)		(141	)		(8	)
Class C		—			(15	)		(183	)		(3	)		—
Class I		—			—			—	(a)		—			—
Total reimbursement of expenses		—			(117	)		(535	)		(23	)		—
Net expenses		1,575			608			1,276			270			1,925
Net investment income (loss)		24,104			249			501			(107	)		12,206
Net realized gain (loss) on transactions from:
Investment securities		(21,873	)		(5,317	)		—			(12,465	)		(2,971	)
Futures contracts		—			—			—			—			(1,328	)
Foreign currency transactions		—			(1	)		—			—			—
		(21,873	)		(5,318	)		—			(12,465	)		(4,299	)
Net increase (decrease) in unrealized appreciation (depreciation) on:
Investment securities		52,549			(1,683	)		—			13,314			23,825
Futures contracts		—			—			—			—			160
Change in unrealized appreciation (depreciation)		52,549			(1,683	)		—			13,314			23,985
Net realized and unrealized gain (loss):		30,676			(7,001	)		—			849			19,686
Net increase (decrease) In net assets resulting from operations	$	54,780		$	(6,752	)	$	501		$	742		$	31,892

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

39

	Transamerica			Transamerica			Transamerica
	Small/Mid Cap			Templeton			Value
	Value			Global			Balanced
Investment income:
Dividend income	$	3,031		$	1,214		$	289
Withholding taxes on foreign dividends		—			(65	)		(2	)
Interest income		—			—			336
Securities lending income (net)		279			53			11
		3,310			1,202			634
Expenses:
Management and advisory		1,117			338			100
Distribution and service:
Class A		240			112			29
Class B		132			42			26
Class C		393			61			26
Transfer agent:
Class A		308			233			36
Class B		52			52			17
Class C		134			43			8
Class I		—			(a	)
Printing and shareholder reports		80			8			2
Custody		41			31			10
Administration		28			9			3
Legal		5			1			1
Audit and tax		10			11			11
Trustees		4			1			—
Registration		26			28			19
Other		5			6			1
Total expenses		2,575			976			289
Class expense reimbursed:
Class A		—			(177	)		(28	)
Class B		—			(45	)		(14	)
Class C		—			(32	)		(6	)
Total reimbursement of expenses		—			(254	)		(48	)
Net expenses		2,575			722			241
Net investment income		735			480			393
Net realized gain (loss) on transactions from:
Investment securities		(135,265	)		(13,430	)		(3,121	)
		(135,265	)		(13,430	)		(3,121	)
Net increase (decrease) in unrealized appreciation (depreciation) on:
Investment securities		101,060			8,998			1,323
Translation of assets and liabilities denominated in foreign currencies		—			1			—
Change in unrealized appreciation (depreciation)		101,060			8,999			1,323
Net realized and unrealized loss:		(34,205	)		(4,431	)		(1,798	)
Net decrease In net assets resulting from operations	$	(33,470	)	$	(3,951	)	$	(1,405	)

(a) Rounds to less than $1.

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

40

STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended:
(all amounts in thousands)

							Transamerica Convertible
	Transamerica Balanced						Securities						Transamerica Equity
	April 30, 2009						April 30, 2009						April 30, 2009
	(unaudited)			October 31, 2008			(unaudited)			October 31, 2008			(unaudited)			October 31, 2008
From operations:
Net investment income	$	794		$	1,331		$	1,599		$	2,392		$	3,566		$	2,780
Net realized gain (loss)(a)		(9,799	)		6,222			(23,702	)		(17,308	)		(177,917	)		(58,064	)
Change in unrealized appreciation (depreciation)(b)		10,936			(63,988	)		21,341			(55,761	)		122,381			(731,286	)
Net increase (decrease) in net assets resulting from operations		1,931			(56,435	)		(762	)		(70,677	)		(51,970	)		(786,570	)
Distributions to shareholders:
From net investment income:
Class A		(542	)		(699	)		(185	)		(133	)		—			—
Class B		(178	)		(286	)		(35	)		(15	)		—			—
Class C		(132	)		(161	)		(93	)		(38	)		—			—
Class I		—			—			(1,545	)		(1,811	)		(2,946	)		—
Class T														(9	)		—
		(852	)		(1,146	)		(1,858	)		(1,997	)		(2,955	)		—
From net realized gains:
Class A		(3,148	)		(1,615	)		—			(2,349	)		—			—
Class B		(1,819	)		(2,368	)		—			(1,381	)		—			—
Class C		(1,091	)		(828	)		—			(861	)		—			—
Class I		—			—			—			(31,579	)		—			—
		(6,058	)		(4,811	)		—			(36,170	)		—			—
Total distributions to shareholders		(6,910	)		(5,957	)		(1,858	)		(38,167	)		(2,955	)		—
Capital share transactions:
Proceeds from shares sold:
Class A		1,172			3,878			3,990			13,963			11,440			42,081
Class B		675			2,063			220			1,164			1,773			4,848
Class C		562			1,325			1,064			9,648			1,785			5,391
Class I		—			—			72			6,078			30,383			51,057
Class T														488			1,798
		2,409			7,266			5,346			30,853			45,869			105,175
Dividends and distributions reinvested:
Class A		3,493			2,018			134			1,721			—			—
Class B		1,902			2,440			28			1,103			—			—
Class C		1,097			879			34			599			—			—
Class I		—			—			1,545			32,781			2,946			—
Class T														9			—
		6,492			5,337			1,741			36,204			2,955			—
Cost of shares redeemed:
Class A		(6,764	)		(15,261	)		(4,058	)		(7,685	)		(32,902	)		(89,748	)
Class B		(4,715	)		(19,396	)		(764	)		(1,659	)		(5,337	)		(28,453	)
Class C		(2,406	)		(6,156	)		(1,885	)		(2,109	)		(8,332	)		(19,902	)
Class I		—			—			(46,777	)		(4,311	)		(51,624	)		(56,853	)
Class T		—			—			—			—			(6,848	)		(21,752	)
		(13,885	)		(40,813	)		(53,484	)		(15,764	)		(105,043	)		(216,708	)
Redemption fee:
Class A		—			—			—			—			—			3
		—			—			—			—			—			3
Automatic conversions:
Class A		5,525			24,175			87			645			7,600			48,320
Class B		(5,525	)		(24,175	)		(87	)		(645	)		(7,600	)		(48,320	)
		—			—			—			—			—			—
Net increase (decrease) in net assets resulting from capital shares transactions		(4,984	)		(28,210	)		(46,397	)		51,293			(56,219	)		(111,530	)
Net decrease in net assets		(9,963	)		(90,602	)		(49,017	)		(57,551	)		(111,144	)		(898,100	)
Net assets:
Beginning of period/year	$	100,105		$	190,707		$	112,417		$	169,968		$	997,898		$	1,895,998
End of period/year	$	90,142		$	100,105		$	63,400		$	112,417		$	886,754		$	997,898
Undistributed net investment income (loss)	$	131		$	189		$	261		$	520		$	2,980		$	2,369

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

41

							Transamerica Convertible
	Transamerica Balanced						Securities						Transamerica Equity
	April 30, 2009						April 30, 2009						April 30, 2009
	(unaudited)			October 31, 2008			(unaudited)			October 31, 2008			(unaudited)			October 31, 2008
Share activity:
Shares issued:
Class A		80			168			578			1,322			1,906			4,098
Class B		45			93			33			111			323			511
Class C		39			60			158			939			313			552
Class I		—			—			10			509			4,677			6,453
Class T														29			64
		164			321			779			2,881			7,248			11,678
Shares issued-reinvested from distributions:
Class A		237			95			20			159			—			6
Class B		130			104			4			100			—			—
Class C		75			39			5			55			—			—
Class I		—			—			227			3,008			458			—
Class T														1			—
		442			238			256			3,322			459			6
Shares redeemed:
Class A		(464	)		(712	)		(594	)		(784	)		(5,556	)		(9,119	)
Class B		(324	)		(893	)		(112	)		(168	)		(969	)		(3,011	)
Class C		(168	)		(289	)		(279	)		(235	)		(1,503	)		(2,172	)
Class I		—			—			(6,891	)		(465	)		(8,375	)		(7,429	)
Class T														(415	)		(787	)
		(956	)		(1,894	)		(7,876	)		(1,652	)		(16,818	)		(22,518	)
Automatic conversions:
Class A		367			1,089			13			62			1,240			4,704
Class B		(369	)		(1,096	)		(13	)		(62	)		(1,328	)		(5,003	)
		(2	)		(7	)		—			—			(88	)		(299	)
Net increase (decrease) in shares outstanding:
Class A		220			640			17			759			(2,410	)		(311	)
Class B		(518	)		(1,792	)		(88	)		(19	)		(1,974	)		(7,503	)
Class C		(54	)		(190	)		(116	)		759			(1,190	)		(1,620	)
Class I								(6,654	)		3,052			(3,240	)		(976	)
Class T														(385	)		(723	)
		(352	)		(1,342	)		(6,841	)		4,551			(9,199	)		(11,133	)

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

42

							Transamerica Growth
	Transamerica Flexible Income						Opportunities						Transamerica High Yield Bond
	April 30, 2009						April 30, 2009						April 30, 2009
	(unaudited)			October 31, 2008			(unaudited)			October 31, 2008			(unaudited)			October 31, 2008
From operations:
Net investment income (loss)	$	4,381		$	19,949		$	86		$	(933	)	$	24,104		$	37,005
Net realized loss(a)		(24,575	)		(34,533	)		(16,098	)		(20,795	)		(21,873	)		(9,296	)
Change in unrealized appreciation (depreciation)(b)		23,959			(26,098	)		16,538			(114,155	)		52,549			(173,227	)
Net increase (decrease) in net assets resulting from operations		3,765			(40,682	)		526			(135,883	)		54,780			(145,518	)
Distributions to shareholders:
From net investment income:
Class A		(439	)		(849	)		—			—			(1,523	)		(2,500	)
Class B		(225	)		(600	)		—			—			(458	)		(1,008	)
Class C		(171	)		(386	)		—			—			(339	)		(574	)
Class I		(3,818	)		(18,830	)		—			—			(22,744	)		(31,427	)
		(4,653	)		(20,665	)		—			—			(25,064	)		(35,509	)
Total distributions to shareholders		(4,653	)		(20,665	)		—			—			(25,064	)		(35,509	)
Capital share transactions:
Proceeds from shares sold:
Class A		3,540			3,320			1,734			3,902			17,134			10,846
Class B		1,841			1,949			822			2,025			1,354			1,083
Class C		2,122			2,580			585			1,293			5,794			736
Class I		10,717			28,018			2,369			1,984			3,697			241,102
		18,220			35,867			5,510			9,204			27,979			253,767
Dividends and distributions reinvested:
Class A		369			509			—			—			1,039			1,345
Class B		176			369			—			—			289			502
Class C		140			239			—			—			199			267
Class I		3,818			15,299			—			—			22,744			20,457
		4,503			16,416			—			—			24,271			22,571
Cost of shares redeemed:
Class A		(2,816	)		(5,383	)		(3,882	)		(14,166	)		(12,079	)		(14,351	)
Class B		(1,429	)		(5,085	)		(1,649	)		(9,511	)		(1,228	)		(6,552	)
Class C		(1,537	)		(4,119	)		(1,255	)		(4,474	)		(1,541	)		(3,074	)
Class I		(45,710	)		(232,281	)		(14	)		(45,766	)		(125,950	)		(11,363	)
		(51,492	)		(246,868	)		(6,800	)		(73,917	)		(140,798	)		(35,340	)
Redemption fee:
Class A		—			—			1			1			—			1
		—			—			1			1			—			1
Automatic conversions:
Class A		818			3,069			3,492			15,592			391			2,666
Class B		(818	)		(3,069	)		(3,492	)		(15,592	)		(391	)		(2,666	)
		—			—			—			—			—			—
Net increase (decrease) in net assets resulting from capital shares transactions		(28,769	)		(194,585	)		(1,289	)		(64,712	)		(88,548	)		240,999
Net increase (decrease) in net assets		(29,657	)		(255,932	)		(763	)		(200,595	)		(58,832	)		59,972
Net assets:
Beginning of period/year	$	156,077		$	412,009		$	158,872		$	359,467		$	457,949		$	397,977
End of period/year	$	126,420		$	156,077		$	158,109		$	158,872		$	399,117		$	457,949
Undistributed (accumulated) net investment income (loss)	$	533		$	805		$	69		$	(17	)	$	2,107		$	3,067

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

43

							Transamerica Growth
	Transamerica Flexible Income						Opportunities						Transamerica High Yield Bond
	April 30, 2009						April 30, 2009						April 30, 2009
	(unaudited)			October 31, 2008			(unaudited)			October 31, 2008			(unaudited)			October 31, 2008
Share activity:
Shares issued:
Class A		510			359			298			427			2,772			4,575
Class B		264			214			159			235			216			1,712
Class C		307			290			106			144			925			1,055
Class I		1,550			2,984			409			224			564			67,248
		2,631			3,847			972			1,030			4,477			74,590
Shares issued-reinvested from distributions:
Class A		53			83			—			—			172			223
Class B		25			56			—			—			48			78
Class C		20			38			—			—			33			41
Class I		547			2,167			—			—			3,775			3,829
		645			2,344			—			—			4,028			4,171
Shares redeemed:
Class A		(404	)		(630	)		(680	)		(1,569	)		(1,960	)		(733	)
Class B		(204	)		(585	)		(311	)		(1,105	)		(201	)		(229	)
Class C		(222	)		(483	)		(235	)		(529	)		(256	)		(195	)
Class I		(6,575	)		(27,886	)		(2	)		(5,248	)		(20,591	)		(1,397	)
		(7,405	)		(29,584	)		(1,228	)		(8,451	)		(23,008	)		(2,554	)
Automatic conversions:
Class A		116			351			589			1,695			64			37
Class B		(116	)		(351	)		(632	)		(1,809	)		(64	)		(37	)
		—			—			(43	)		(114	)		—			—
Net increase (decrease) in shares outstanding:
Class A		275			163			207			553			1,048			4,102
Class B		(31	)		(666	)		(784	)		(2,679	)		(1	)		1,524
Class C		105			(155	)		(129	)		(385	)		702			901
Class I		(4,478	)		(22,735	)		407			(5,024	)		(16,252	)		69,680
		(4,129	)		(23,393	)		(299	)		(7,535	)		(14,503	)		76,207

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

44

	Transamerica Legg Mason												Transamerica Science &
	Partners All Cap						Transamerica Money Market						Technology
	April 30, 2009						April 30, 2009						April 30, 2009
	(unaudited)			October 31, 2008			(unaudited)			October 31, 2008			(unaudited)			October 31, 2008
From operations:
Net investment income (loss)	$	249		$	532		$	501		$	4,673		$	(107	)	$	(434	)
Net realized loss(a)		(5,318	)		(1,842	)		—			—			(12,465	)		(563	)
Change in unrealized appreciation (depreciation)(b)		(1,683	)		(48,557	)		—			—			13,314			(48,013	)
Net increase (decrease) in net assets resulting from operations		(6,752	)		(49,867	)		501			4,673			742			(49,010	)
Distributions to shareholders:
From net investment income:
Class A		(415	)		—			(300	)		(2,745	)		—			—
Class B		(96	)		—			(30	)		(473	)		—			—
Class C		(84	)		—			(42	)		(539	)		—			—
Class I		—			—			(129	)		(927	)		—			—
		(595	)		—			(501	)		(4,684	)		—			—
From net realized gains:
Class A		—			(4,246	)		—			—			—			(282	)
Class B		—			(7,861	)		—			—			—			(157	)
Class C		—			(3,130	)		—			—			—			(96	)
Class I		—			—			—			—			—			(2,576	)
		—			(15,237	)		—			—			—			(3,111	)
Total distributions to shareholders		(595	)		(15,237	)		(501	)		(4,684	)		—			(3,111	)
Capital share transactions:
Proceeds from shares sold:
Class A		936			2,542			83,176			156,262			403			2,918
Class B		572			1,618			19,127			36,830			63			381
Class C		662			909			41,440			72,304			89			660
Class I		—			—			15,315			25,560			—			4,896
		2,170			5,069			159,058			290,956			555			8,855
Dividends and distributions reinvested:
Class A		401			4,108			256			2,215			—			268
Class B		87			7,238			29			376			—			149
Class C		75			2,816			41			404			—			78
Class I		—			—			93			811			—			2,576
		563			14,162			419			3,806			—			3,071
Cost of shares redeemed:
Class A		(3,900	)		(15,837	)		(72,269	)		(115,331	)		(671	)		(3,212	)
Class B		(4,000	)		(23,998	)		(11,872	)		(16,870	)		(204	)		(821	)
Class C		(2,218	)		(10,843	)		(32,019	)		(32,353	)		(237	)		(625	)
Class I		—			—			(6,123	)		(31,716	)		(1,169	)		(1,428	)
		(10,118	)		(50,678	)		(122,283	)		(196,270	)		(2,281	)		(6,086	)
Redemption fee:
		—			—			—			—			—			—
Automatic conversions:
Class A		3,893			8,181			2,233			3,549			285			186
Class B		(3,893	)		(8,181	)		(2,233	)		(3,549	)		(285	)		(186	)
		—			—			—			—			—			—
Net increase (decrease) in net assets resulting from capital shares transactions		(7,385	)		(31,447	)		37,194			98,492			(1,726	)		5,840
Net increase (decrease) in net assets		(14,732	)		(96,551	)		37,194			98,481			(984	)		(46,281	)
Net assets:
Beginning of period/year	$	77,223		$	173,774		$	271,884		$	173,403		$	53,511		$	99,792
End of period/year	$	62,491		$	77,223		$	309,078		$	271,884		$	52,527		$	53,511
Undistributed (accumulated) net investment income (loss)	$	179		$	525		$	83		$	83		$	(109	)	$	(2	)

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

45

	Transamerica Legg Mason												Transamerica Science &
	Partners All Cap						Transamerica Money Market						Technology
	April 30, 2009						April 30, 2009						April 30, 2009
	(unaudited)			October 31, 2008			(unaudited)			October 31, 2008			(unaudited)			October 31, 2008
Share activity:
Shares issued:
Class A		109			183			83,176			156,265			155			616
Class B		73			128			19,116			36,830			27			92
Class C		82			73			41,433			72,304			36			154
Class I		—			—			15,315			25,560			—			1,201
		264			384			159,040			290,959			218			2,063
Shares issued-reinvested from distributions:
Class A		44			271			256			2,215			—			53
Class B		10			513			40			376			—			31
Class C		9			199			48			404			—			16
Class I		—			—			93			811			—			501
		63			983			437			3,806			—			601
Shares redeemed:
Class A		(471	)		(1,145	)		(72,269	)		(115,331	)		(268	)		(774	)
Class B		(509	)		(1,867	)		(11,872	)		(16,870	)		(88	)		(202	)
Class C		(283	)		(835	)		(32,019	)		(32,353	)		(102	)		(161	)
Class I		—			—			(6,123	)		(31,716	)		(476	)		(394	)
		(1,263	)		(3,847	)		(122,283	)		(196,270	)		(934	)		(1,531	)
Automatic conversions:
Class A		454			595			2,233			3,549			110			47
Class B		(487	)		(641	)		(2,233	)		(3,549	)		(117	)		(50	)
		(33	)		(46	)		—			—			(7	)		(3	)
Net increase (decrease) in shares outstanding:
Class A		136			(96	)		13,396			46,698			(3	)		(58	)
Class B		(913	)		(1,867	)		5,051			16,787			(178	)		(129	)
Class C		(192	)		(563	)		9,462			40,355			(66	)		9
Class I								9,285			(5,345	)		(476	)		1,308
		(969	)		(2,526	)		37,194			98,495			(723	)		1,130

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

46

	Transamerica Short-Term Bond						Transamerica Small/Mid Cap Value						Transamerica Templeton Global
	April 30, 2009						April 30, 2009						April 30, 2009
	(unaudited)			October 31, 2008			(unaudited)			October 31, 2008			(unaudited)			October 31, 2008
From operations:
Net investment income	$	12,206		$	24,879		$	735		$	9,308		$	480		$	1,492
Net realized gain (loss)(a)		(4,299	)		(10,141	)		(135,265	)		(98,519	)		(13,430	)		11,217
Change in unrealized appreciation (depreciation)(b)		23,985			(19,826	)		101,060			(296,332	)		8,999			(105,619	)
Net increase (decrease) in net assets resulting from operations		31,892			(5,088	)		(33,470	)		(385,543	)		(3,951	)		(92,910	)
Distributions to shareholders:
From net investment income:
Class A		(313	)		(73	)		(4,092	)		(815	)		(662	)		(1,124	)
Class B								(531	)		—			—			(99	)
Class C		(438	)		(74	)		(1,959	)		(207	)		—			(199	)
Class I		(12,788	)		(24,970	)		(1,434	)		(4,881	)		—			—
		(13,539	)		(25,117	)		(8,016	)		(5,903	)		(662	)		(2,122	)
From net realized gains:
Class A		—			—			—			(12,319	)		—			—
Class B								—			(5,719	)		—			—
Class C		—			—			—			(7,564	)		—			—
Class I		—			—			—			(50,781	)		—			—
		—			—			—			(76,383	)		—			—
Total distributions to shareholders		(13,539	)		(25,117	)		(8,016	)		(82,286	)		(662	)		(2,122	)
Capital share transactions:
Proceeds from shares sold:
Class A		39,178			6,797			28,871			376,986			712			4,616
Class B								2,365			18,229			426			1,618
Class C		47,267			8,910			8,157			111,684			303			900
Class I		183,987			34,605			25,014			40,971			—			—
		270,432			50,312			64,407			547,870			1,441			7,134
Dividends and distributions reinvested:
Class A		236			27			3,256			10,992			644			1,085
Class B								458			5,175			—			94
Class C		281			29			1,538			6,054			—			189
Class I		12,788			19,101			1,434			55,662			—			—
		13,305			19,157			6,686			77,883			644			2,068
Cost of shares redeemed:
Class A		(4,396	)		(923	)		(80,103	)		(137,493	)		(6,327	)		(21,738	)
Class B								(3,539	)		(10,337	)		(1,080	)		(8,972	)
Class C		(2,755	)		(1,386	)		(16,095	)		(21,818	)		(1,554	)		(5,417	)
Class I		(84,062	)		(95,587	)		(200,957	)		(148,685	)		—			—
		(91,213	)		(97,896	)		(300,694	)		(318,333	)		(8,961	)		(74,197	)
Redemption fee:
Class A		1			2			6			2			—			—
		1			2			6			2			—			—
Automatic conversions:
Class A		—			—			891			7,300			1,377			30,467
Class B								(891	)		(7,300	)		(1,377	)		(30,467	)
		—			—			—			—			—			—
Net increase (decrease) in net assets resulting from capital shares transactions		192,525			(28,425	)		(229,595	)		307,422			(6,876	)		(64,995	)
Net increase (decrease) in net assets		210,878			(58,630	)		(271,081	)		(160,407	)		(11,489	)		(160,027	)
Net assets:
Beginning of period/year	$	505,259		$	563,889		$	541,006		$	701,413		$	98,753		$	258,780
End of period/year	$	716,137		$	505,259		$	269,925		$	541,006		$	87,264		$	98,753
Undistributed net investment income (loss)	$	—		$	1,333		$	570		$	7,851		$	239		$	427

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

47

	Transamerica Short-Term Bond						Transamerica Small/Mid Cap Value						Transamerica Templeton Global
	April 30, 2009						April 30, 2009						April 30, 2009
	(unaudited)			October 31, 2008			(unaudited)			October 31, 2008			(unaudited)			October 31, 2008
Share activity:
Shares issued:
Class A		4,063			689			2,610			20,500			40			148
Class B								223			1,013			26			61
Class C		4,926			908			771			6,200			18			32
Class I		19,480			2,942			2,159			3,081			—			—
		28,469			4,539			5,763			30,794			84			241
Shares issued-reinvested from distributions:
Class A		25			6			287			553			34			35
Class B								42			270			—			3
Class C		29			6			142			318			—			6
Class I		1,368			2,571			126			2,787			—			—
		1,422			2,583			597			3,928			34			64
Shares redeemed:
Class A		(464	)		(95	)		(7,464	)		(9,819	)		(363	)		(749	)
Class B								(349	)		(609	)		(66	)		(315	)
Class C		(288	)		(143	)		(1,597	)		(1,406	)		(96	)		(198	)
Class I		(9,001	)		(9,914	)		(18,266	)		(9,530	)		—			—
		(9,753	)		(10,152	)		(27,676	)		(21,364	)		(525	)		(2,522	)
Automatic conversions:
Class A		—			—			80			385			76			1,006
Class B								(83	)		(400	)		(81	)		(1,071	)
		—			—			(3	)		(15	)		(5	)		(65	)
Net increase (decrease) in shares outstanding:
Class A		3,624			600			(4,487	)		11,619			(213	)		440
Class B								(167	)		274			(121	)		(1,322	)
Class C		4,667			771			(684	)		5,112			(78	)		(160	)
Class I		11,847			(4,401	)		(15,981	)		(3,662	)
		20,138			(3,030	)		(21,319	)		13,343			(412	)		(2,282	)

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

48

	Transamerica Value Balanced
	April 30, 2009
	(unaudited)			October 31, 2008
From operations:
Net investment income	$	393		$	1,068
Net realized loss(a)		(3,121	)		(3,730	)
Change in unrealized appreciation (depreciation) (b)		1,323			(14,696	)
Net decrease in net assets resulting from operations		(1,405	)		(17,358	)
Distributions to shareholders:
From net investment income:
Class A		(226	)		(692	)
Class B		(52	)		(196	)
Class C		(52	)		(172	)
		(330	)		(1,060	)
From net realized gains:
Class A		—			(1,609	)
Class B		—			(830	)
Class C		—			(566	)
		—			(3,005	)
Total distributions to shareholders		(330	)		(4,065	)
Capital share transactions:
Proceeds from shares sold:
Class A		747			1,496
Class B		188			511
Class C		462			374
		1,397			2,381
Dividends and distributions reinvested:
Class A		214			2,069
Class B		48			909
Class C		48			669
		310			3,647
Cost of shares redeemed:
Class A		(3,211	)		(8,353	)
Class B		(974	)		(4,161	)
Class C		(1,228	)		(2,846	)
		(5,413	)		(15,360	)
Redemption fee:
Class B		—			1
		—			1
Automatic conversions:
Class A		711			3,193
Class B		(711	)		(3,193	)
		—			—
Net decrease in net assets resulting from capital shares transactions		(3,706	)		(9,331	)
Net decrease in net assets		(5,441	)		(30,754	)
Net assets:
Beginning of period/year	$	30,913		$	61,667
End of period/year	$	25,472		$	30,913
Undistributed net investment income (loss)	$	412		$	349

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

49

	Transamerica Value Balanced
	April 30, 2009
	(unaudited)			October 31, 2008
Share activity:
Shares issued:
Class A		89			112
Class B		23			39
Class C		55			29
		167			180
Shares issued-reinvested from distributions:
Class A		27			176
Class B		6			74
Class C		7			56
		40			306
Shares redeemed:
Class A		(393	)		(713	)
Class B		(119	)		(351	)
Class C		(149	)		(243	)
		(661	)		(1,307	)
Automatic conversions:
Class A		86			261
Class B		(86	)		(262	)
		—			(1	)
Net increase (decrease) in shares outstanding:
Class A		(191	)		(164	)
Class B		(176	)		(500	)
Class C		(87	)		(158	)
		(454	)		(822	)

(a)	Net realized gain (loss) includes Investment Securities, Futures Contracts, Written Options and Swaptions, Securities Sold Short, Swaps and Foreign Currency Transactions.
(b)	Change in unrealized appreciation (depreciation) includes Investment Securities, Futures Contracts, Written Options and Swaptions, Securities Sold Short, Swaps and Foreign Currency Translation.

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

50

FINANCIAL HIGHLIGHTS
For the period or years ended:

For a share outstanding throughout each period

	Transamerica Balanced
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	16.44		$	25.70		$	22.05		$	19.90		$	18.53		$	17.43
Investment operations
Net investment income(a)		0.16			0.28			0.17			0.12			0.15			0.14
Net realized and unrealized gain (loss) on investments		0.31			(8.64	)		3.62			2.12			1.41			1.08
Total from investment operations		0.47			(8.36	)		3.79			2.24			1.56			1.22
Distributions
Net investment income		(0.17	)		(0.24	)		(0.14	)		(0.09	)		(0.19	)		(0.12	)
Net realized gains on investments		(1.03	)		(0.66	)		—			—			—			—
Total distributions		(1.20	)		(0.90	)		(0.14	)		(0.09	)		(0.19	)		(0.12	)
Net asset value
End of period/year	$	15.71		$	16.44		$	25.70		$	22.05		$	19.90		$	18.53
Total return(b)		3.37	%(c)		(33.55	)%		17.28	%		11.27	%		8.41	%		7.03	%
Net assets end of period/year	$	51,144		$	49,917		$	61,565		$	55,547		$	62,440		$	72,997
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.72	%(d)		1.52	%		1.56	%		1.58	%		1.59	%		1.70	%
Before reimbursement/fee waiver		1.72	%(d)		1.52	%		1.56	%		1.58	%		1.59	%		1.70	%
Net investment income, to average net assets (e)		2.11	%(d)		1.27	%		0.73	%		0.57	%		0.75	%		0.76	%
Portfolio turnover rate		63	%(c)		52	%		52	%		51	%		27	%		107	%

For a share outstanding throughout each period

	Transamerica Balanced
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	16.37		$	25.58		$	21.98		$	19.88		$	18.47		$	17.39
Investment operations
Net investment income(a)		0.10			0.13			0.04			—	(f)		0.04			0.04
Net realized and unrealized gain (loss) on investments		0.30			(8.58	)		3.60			2.12			1.40			1.08
Total from investment operations		0.40			(8.45	)		3.64			2.12			1.44			1.12
Distributions
Net investment income		(0.11	)		(0.10	)		(0.04	)		(0.02	)		(0.03	)		(0.04	)
Net realized gains on investments		(1.03	)		(0.66	)		—			—			—			—
Total distributions		(1.14	)		(0.76	)		(0.04	)		(0.02	)		(0.03	)		(0.04	)
Net asset value
End of period/year	$	15.63		$	16.37		$	25.58		$	21.98		$	19.88		$	18.47
Total return(b)		2.92	%(c)		(33.95	)%		16.57	%		10.65	%		7.80	%		6.44	%
Net assets end of period/year	$	22,921		$	32,469		$	96,573		$	118,286		$	142,479		$	170,630
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.45	%(d)		2.15	%		2.14	%		2.15	%		2.14	%		2.26	%
Before reimbursement/fee waiver		2.50	%(d)		2.15	%		2.14	%		2.15	%		2.14	%		2.26	%
Net investment income, to average net assets (e)		1.39	%(d)		0.59	%		0.15	%		0.01	%		0.20	%		0.19	%
Portfolio turnover rate		63	%(c)		52	%		52	%		51	%		27	%		107	%

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

51

For a share outstanding throughout each period

	Transamerica Balanced
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	16.30		$	25.50		$	21.91		$	19.82		$	18.45		$	17.39
Investment operations
Net investment income (loss)(a)		0.11			0.15			0.04			0.01			0.04			(0.01	)
Net realized and unrealized gain (loss) on investments		0.32			(8.56	)		3.59			2.10			1.41			1.11
Total from investment operations		0.43			(8.41	)		3.63			2.11			1.45			1.10
Distributions
Net investment income		(0.13	)		(0.13	)		(0.04	)		(0.02	)		(0.08	)		(0.04	)
Net realized gains on investments		(1.03	)		(0.66	)		—			—			—			—
Total distributions		(1.16	)		(0.79	)		(0.04	)		(0.02	)		(0.08	)		(0.04	)
Net asset value
End of period/year	$	15.57		$	16.30		$	25.50		$	21.91		$	19.82		$	18.45
Total return(b)		3.09	%(c)		(33.92	)%		16.61	%		10.64	%		7.85	%		6.33	%
Net assets end of period/year	$	16,077		$	17,719		$	32,569		$	36,750		$	43,276		$	53,990
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.28	%(d)		2.08	%		2.11	%		2.12	%		2.13	%		2.28	%
Before reimbursement/fee waiver		2.28	%(d)		2.08	%		2.11	%		2.12	%		2.13	%		2.28	%
Net investment income (loss), to average net assets(e)		1.55	%(d)		0.69	%		0.18	%		0.03	%		0.21	%		(0.08	)%
Portfolio turnover rate		63	%(c)		52	%		52	%		51	%		27	%		107	%

For a share outstanding throughout each period

	Transamerica Convertible Securities
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.18		$	15.30		$	12.76		$	11.56		$	11.00		$	11.32
Investment operations
Net investment income(a)		0.11			0.13			0.10			0.07			0.20			0.21
Net realized and unrealized gain (loss) on investments		0.03			(4.92	)		3.22			1.33			0.81			0.56
Total from investment operations		0.14			(4.79	)		3.32			1.40			1.01			0.77
Distributions
Net investment income		(0.12	)		(0.10	)		(0.11	)		(0.07	)		(0.20	)		(0.22	)
Net realized gains on investments		—			(3.23	)		(0.67	)		(0.13	)		(0.25	)		(0.87	)
Total distributions		(0.12	)		(3.33	)		(0.78	)		(0.20	)		(0.45	)		(1.09	)
Net asset value
End of period/year	$	7.20		$	7.18		$	15.30		$	12.76		$	11.56		$	11.00
Total return(b)		2.05	%(c)		(38.92	)%		27.41	%		12.15	%		9.24	%		7.06	%
Net assets end of period/year	$	10,890		$	10,748		$	11,276		$	6,350		$	209,374		$	188,049
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.48	%(d)		1.33	%		1.33	%		1.25	%		1.17	%		1.20	%
Before reimbursement/fee waiver		1.48	%(d)		1.33	%		1.33	%		1.25	%		1.17	%		1.20	%
Net investment income, to average net assets (e)		3.13	%(d)		1.23	%		0.75	%		0.59	%		1.74	%		1.83	%
Portfolio turnover rate		87	%(c)		91	%		92	%		69	%		87	%		157	%

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

52

For a share outstanding throughout each period

	Transamerica Convertible Securities
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.13		$	15.22		$	12.71		$	11.54		$	11.00		$	11.31
Investment operations
Net investment income(a)		0.08			0.04			0.01			—	(f)		0.09			0.14
Net realized and unrealized gain (loss) on investments		0.03			(4.87	)		3.21			1.32			0.80			0.57
Total from investment operations		0.11			(4.83	)		3.22			1.32			0.89			0.71
Distributions
Net investment income		(0.10	)		(0.03	)		(0.04	)		(0.02	)		(0.10	)		(0.15	)
Net realized gains on investments		—			(3.23	)		(0.67	)		(0.13	)		(0.25	)		(0.87	)
Total distributions		(0.10	)		(3.26	)		(0.71	)		(0.15	)		(0.35	)		(1.02	)
Net asset value
End of period/year	$	7.14		$	7.13		$	15.22		$	12.71		$	11.54		$	11.00
Total return(b)		1.57	%(c)		(39.32	)%		26.54	%		11.47	%		8.09	%		6.52	%
Net assets end of period/year	$	2,297		$	2,920		$	6,533		$	6,651		$	6,656		$	6,379
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.23	%(d)		2.02	%		1.99	%		1.99	%		2.15	%		1.79	%
Before reimbursement/fee waiver		2.23	%(d)		2.02	%		1.99	%		1.99	%		2.15	%		1.79	%
Net investment income, to average net assets(e)		2.25	%(d)		0.40	%		0.10	%		—	%		0.76	%		1.24	%
Portfolio turnover rate		87	%(c)		91	%		92	%		69	%		87	%		157	%

For a share outstanding throughout each period

	Transamerica Convertible Securities
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.10		$	15.17		$	12.66		$	11.50		$	10.97		$	11.31
Investment operations
Net investment income(a)		0.08			0.07			0.02			—	(f)		0.08			0.11
Net realized and unrealized gain (loss) on investments		0.03			(4.87	)		3.20			1.31			0.82			0.57
Total from investment operations		0.11			(4.80	)		3.22			1.31			0.90			0.68
Distributions
Net investment income		(0.10	)		(0.04	)		(0.04	)		(0.02	)		(0.12	)		(0.15	)
Net realized gains on investments		—			(3.23	)		(0.67	)		(0.13	)		(0.25	)		(0.87	)
Total distributions		(0.10	)		(3.27	)		(0.71	)		(0.15	)		(0.37	)		(1.02	)
Net asset value
End of period/year	$	7.11		$	7.10		$	15.17		$	12.66		$	11.50		$	10.97
Total return(b)		1.66	%(c)		(39.24	)%		26.69	%		11.44	%		8.17	%		6.33	%
Net assets end of period/year	$	6,255		$	7,070		$	3,598		$	3,551		$	4,465		$	5,204
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.04	%(d)		1.94	%		1.94	%		1.94	%		2.16	%		2.05	%
Before reimbursement/fee waiver		2.04	%(d)		1.94	%		1.94	%		1.94	%		2.16	%		2.05	%
Net investment income, to average net assets(e)		2.52	%(d)		0.72	%		0.15	%		0.02	%		0.73	%		0.98	%
Portfolio turnover rate		87	%(c)		91	%		92	%		69	%		87	%		157	%

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

53

For a share outstanding throughout each period

	Transamerica Convertible Securities
	Class I
	April 30, 2009			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006(g)
Net asset value
Beginning of period/year	$	7.19		$	15.31		$	12.76		$	11.71
Investment operations
Net investment income(a)		0.12			0.18			0.16			0.14
Net realized and unrealized gain (loss) on investments		0.03			(4.92	)		3.23			1.17
Total from investment operations		0.15			(4.74	)		3.39			1.31
Distributions
Net investment income		(0.14	)		(0.15	)		(0.17	)		(0.13	)
Net realized gains on investments		—			(3.23	)		(0.67	)		(0.13	)
Total distributions		(0.14	)		(3.38	)		(0.84	)		(0.26	)
Net asset value
End of period/year	$	7.20		$	7.19		$	15.31			11.26	%(c)
Total return(b)		2.22	%(c)		(38.58	)%		28.10	%	$	12.76
Net assets end of period/year	$	43,958		$	91,679		$	148,562		$	256,474
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.87	%(d)		0.84	%		0.82	%		0.82	%(d)
Before reimbursement/fee waiver		0.87	%(d)		0.84	%		0.82	%		0.82	%(d)
Net investment income, to average net assets(e)		3.44	%(d)		1.65	%		1.24	%		1.20	%(d)
Portfolio turnover rate		87	%(c)		91	%		92	%		69	%(c)

For a share outstanding throughout each period

	Transamerica Equity
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.85		$	12.07		$	9.83		$	8.87		$	7.44		$	6.86
Investment operations
Net investment income (loss)(a)		0.02			(0.01	)		(0.05	)		(0.07	)		(0.02	)		(0.07	)
Net realized and unrealized gain (loss) on investments		(0.33	)		(5.21	)		2.29			1.11			1.58			0.65
Total from investment operations		(0.31	)		(5.22	)		2.24			1.04			1.56			0.58
Distributions
Net realized gains on investments		—			—			—			(0.08	)		(0.13	)		—
Total distributions		—			—			—			(0.08	)		(0.13	)		—
Net asset value
End of period/year	$	6.54		$	6.85		$	12.07		$	9.83		$	8.87		$	7.44
Total return(b)		(4.53	)%(c)		(43.25	)%		22.79	%		11.71	%		21.16	%		8.45	%
Net assets end of period/year	$	270,559		$	300,140		$	532,251		$	500,483		$	301,635		$	176,851
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.52	%(d)		1.39	%		1.40	%		1.51	%		1.36	%		1.50	%
Before reimbursement/fee waiver		1.66	%(d)		1.39	%		1.40	%		1.51	%		1.36	%		1.50	%
Net investment income (loss), to average net assets(e)		0.51	%(d)		(0.07	)%		(0.48	)%		(0.70	)%		(0.27	)%		(0.90	)%
Portfolio turnover rate		23	%(c)		33	%		62	%		19	%		39	%		97	%

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

54

For a share outstanding throughout each period

	Transamerica Equity
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.42		$	11.39		$	9.35		$	8.49		$	7.19		$	6.68
Investment operations
Net investment loss(a)		—	(f)		(0.08	)		(0.12	)		(0.12	)		(0.08	)		(0.11	)
Net realized and unrealized gain (loss) on investments		(0.32	)		(4.89	)		2.16			1.06			1.51			0.62
Total from investment operations		(0.32	)		(4.97	)		2.04			0.94			1.43			0.51
Distributions
Net realized gains on investments		—			—			—			(0.08	)		(0.13	)		—
Total distributions		—			—			—			(0.08	)		(0.13	)		—
Net asset value
End of period/year	$	6.10		$	6.42		$	11.39		$	9.35		$	8.49		$	7.19
Total return(b)		(4.98	)%(c)		(43.63	)%		21.82	%		11.06	%		20.03	%		7.68	%
Net assets end of period/year	$	44,507		$	59,479		$	191,007		$	222,144		$	49,865		$	47,928
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.17	%(d)		2.17	%		2.17	%		2.17	%		2.18	%		2.20	%
Before reimbursement/fee waiver		2.64	%(d)		2.21	%		2.21	%		2.34	%		2.61	%		2.72	%
Net investment loss, to average net assets(e)		(0.12	)%(d)		(0.87	)%		(1.25	)%		(1.34	)%		(0.99	)%		(1.62	)%
Portfolio turnover rate		23	%(c)		33	%		62	%		19	%		39	%		97	%

For a share outstanding throughout each period

	Transamerica Equity
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.44		$	11.42		$	9.37		$	8.50		$	7.20		$	6.68
Investment operations
Net investment loss(a)		—	(f)		(0.07	)		(0.11	)		(0.12	)		(0.08	)		(0.11	)
Net realized and unrealized gain (loss) on investments		(0.31	)		(4.91	)		2.16			1.07			1.51			0.63
Total from investment operations		(0.31	)		(4.98	)		2.05			0.95			1.43			0.52
Distributions
Net realized gains on investments		—			—			—			(0.08	)		(0.13	)		—
Total distributions		—			—			—			(0.08	)		(0.13	)		—
Net asset value
End of period/year	$	6.13		$	6.44		$	11.42		$	9.37		$	8.50		$	7.20
Total return(b)		(4.81	)%(c)		(43.61	)%		21.88	%		11.16	%		20.05	%		7.78	%
Net assets end of period/year	$	37,088		$	46,676		$	101,226		$	97,047		$	23,656		$	21,808
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.17	%(d)		2.04	%		2.07	%		2.10	%		2.18	%		2.20	%
Before reimbursement/fee waiver		2.35	%(d)		2.04	%		2.07	%		2.10	%		2.31	%		2.55	%
Net investment loss, to average net assets(e)		(0.13	)%(d)		(0.72	)%		(1.15	)%		(1.27	)%		(1.00	)%		(1.63	)%
Portfolio turnover rate		23	%(c)		33	%		62	%		19	%		39	%		97	%

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

55

For a share outstanding throughout each period

	Transamerica Equity
	Class I
	April 30, 2009			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006(g)
Net asset value
Beginning of period/year	$	6.99		$	12.23		$	9.90		$	9.17
Investment operations
Net investment income(a)		0.04			0.06			0.01			—	(f)
Net realized and unrealized gain (loss) on investments		(0.34	)		(5.30	)		2.32			0.81
Total from investment operations		(0.30	)		(5.24	)		2.33			0.81
Distributions
Net investment income		(0.04	)		—			—			—
Net realized gains on investments		—			—			—			(0.08	)
Total distributions		(0.04	)		—			—			(0.08	)
Net asset value
End of period/year	$	6.65		$	6.99		$	12.23		$	9.90
Total return(b)		(4.25	)%(c)		(42.85	)%		23.54	%		8.83	%(c)
Net assets end of period/year	$	454,741		$	500,722		$	888,019		$	714,803
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.80	%(d)		0.75	%		0.78	%		0.81	%(d)
Before reimbursement/fee waiver		0.80	%(d)		0.75	%		0.78	%		0.81	%(d)
Net investment income, to average net assets(e)		1.23	%(d)		0.55	%		0.13	%		0.02	%(d)
Portfolio turnover rate		23	%(c)		33	%		62	%		19	%(c)

For a share outstanding throughout each period

	Transamerica Equity
	Class T
	April 30, 2009			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006(h)
Net asset value
Beginning of period/year	$	19.14		$	33.53		$	27.18		$	27.10
Investment operations
Net investment income(a)		0.08			0.12			—			—	(f)
Net realized and unrealized gain (loss) on investments		(0.92	)		(14.51	)		6.35			0.08
Total from investment operations		(0.84	)		(14.39	)		6.35			0.08
Distributions
Net investment income		—	(f)		—			—			—
Total distributions		—	(f)		—			—			—
Net asset value
End of period/year	$	18.30		$	19.14		$	33.53		$	27.18
Total return(b)		(4.38	)%(c)		(42.92	)%		23.36	%		0.30	%(c)
Net assets end of period/year	$	79,859		$	90,881		$	183,495		$	195,420
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.02	%(d)		0.89	%		0.91	%		0.84	%(d)
Before reimbursement/fee waiver		1.02	%(d)		0.89	%		0.91	%		0.84	%(d)
Net investment income (loss), to average net assets(e)		1.01	%(d)		0.42	%		0.01	%		(0.21	)%(d)
Portfolio turnover rate		23	%(c)		33	%		62	%		19	%(c)

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

56

For a share outstanding throughout each period

	Transamerica Flexible Income
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.22		$	9.14		$	9.38		$	9.31		$	9.68		$	10.21
Investment operations
Net investment income(a)		0.22			0.44			0.48			0.43			0.37			0.38
Net realized and unrealized gain (loss) on investments		0.02			(1.89	)		(0.25	)		0.05			(0.32	)		0.14
Total from investment operations		0.24			(1.45	)		0.23			0.48			0.05			0.52
Distributions
Net investment income		(0.22	)		(0.47	)		(0.47	)		(0.41	)		(0.38	)		(0.38	)
Net realized gains on investments		—			—			—			—			—			(0.63	)
Return of capital		—			—			—			—			(0.04	)		(0.04	)
Total distributions		(0.22	)		(0.47	)		(0.47	)		(0.41	)		(0.42	)		(1.05	)
Net asset value
End of period/year	$	7.24		$	7.22		$	9.14		$	9.38		$	9.31		$	9.68
Total return(b)		3.52	%(c)		(16.57	)%		2.42	%		5.34	%		0.47	%		5.72	%
Net assets end of period/year	$	15,386		$	13,360		$	15,409		$	17,005		$	140,203		$	80,201
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.49	%(d)		1.39	%		1.40	%		1.47	%		1.25	%		1.43	%
Before reimbursement/fee waiver		1.49	%(d)		1.39	%		1.40	%		1.47	%		1.25	%		1.43	%
Net investment income, to average net assets (e)		6.13	%(d)		5.12	%		5.12	%		4.64	%		3.85	%		3.89	%
Portfolio turnover rate		90	%(c)		98	%		108	%		110	%		58	%		169	%

For a share outstanding throughout each period

	Transamerica Flexible Income
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.23		$	9.14		$	9.39		$	9.32		$	9.68		$	10.20
Investment operations
Net investment income(a)		0.19			0.38			0.42			0.38			0.29			0.32
Net realized and unrealized gain (loss) on investments		0.03			(1.88	)		(0.26	)		0.06			(0.32	)		0.15
Total from investment operations		0.22			(1.50	)		0.16			0.44			(0.03	)		0.47
Distributions
Net investment income		(0.20	)		(0.41	)		(0.41	)		(0.37	)		(0.29	)		(0.32	)
Net realized gains on investments		—			—			—			—			—			(0.63	)
Return of capital		—			—			—			—			(0.04	)		(0.04	)
Total distributions		(0.20	)		(0.41	)		(0.41	)		(0.37	)		(0.33	)		(0.99	)
Net asset value
End of period/year	$	7.25		$	7.23		$	9.14		$	9.39		$	9.32		$	9.68
Total return(b)		3.15	%(c)		(17.03	)%		1.66	%		4.81	%		(0.36	)%		5.13	%
Net assets end of period/year	$	8,431		$	8,628		$	17,007		$	23,501		$	32,560		$	45,338
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.21	%(d)		2.05	%		2.04	%		2.08	%		2.08	%		2.03	%
Before reimbursement/fee waiver		2.21	%(d)		2.05	%		2.04	%		2.08	%		2.08	%		2.03	%
Net investment income, to average net assets (e)		5.39	%(d)		4.42	%		4.48	%		4.08	%		3.02	%		3.25	%
Portfolio turnover rate		90	%(c)		98	%		108	%		110	%		58	%		169	%

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

57

For a share outstanding throughout each period

	Transamerica Flexible Income
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	7.21		$	9.12		$	9.36		$	9.30		$	9.67		$	10.20
Investment operations
Net investment income(a)		0.19			0.39			0.42			0.39			0.29			0.33
Net realized and unrealized gain (loss) on investments		0.02			(1.88	)		(0.25	)		0.04			(0.33	)		0.13
Total from investment operations		0.21			(1.49	)		0.17			0.43			(0.04	)		0.46
Distributions
Net investment income		(0.20	)		(0.42	)		(0.41	)		(0.37	)		(0.29	)		(0.32	)
Net realized gains on investments		—			—			—			—			—			(0.63	)
Return of capital		—			—			—			—			(0.04	)		(0.04	)
Total distributions		(0.20	)		(0.42	)		(0.41	)		(0.37	)		(0.33	)		(0.99	)
Net asset value
End of period/year	$	7.22		$	7.21		$	9.12		$	9.36		$	9.30		$	9.67
Total return(b)		3.10	%(c)		(16.98	)%		1.81	%		4.74	%		(0.40	)%		5.02	%
Net assets end of period/year	$	6,752		$	5,981		$	8,982		$	12,519		$	13,439		$	19,675
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.10	%(d)		1.97	%		2.00	%		2.07	%		2.11	%		2.10	%
Before reimbursement/fee waiver		2.10	%(d)		1.97	%		2.00	%		2.07	%		2.11	%		2.10	%
Net investment income, to average net assets (e)		5.52	%(d)		4.52	%		4.51	%		4.15	%		2.99	%		3.37	%
Portfolio turnover rate		90	%(c)		98	%		108	%		110	%		58	%		169	%

For a share outstanding throughout each period

	Transamerica Flexible Income
	Class I
	April 30, 2009			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005(i)
Net asset value
Beginning of period/year	$	7.25		$	9.17		$	9.42		$	9.35		$	9.68
Investment operations
Net investment income(a)		0.23			0.50			0.53			0.50			0.40
Net realized and unrealized gain (loss) on investments		0.04			(1.90	)		(0.26	)		0.05			(0.32	)
Total from investment operations		0.27			(1.40	)		0.27			0.55			0.08
Distributions
Net investment income		(0.25	)		(0.52	)		(0.52	)		(0.48	)		(0.37	)
Net realized gains on investments		—			—			—			—			(0.04	)
Total distributions		(0.25	)		(0.52	)		(0.52	)		(0.48	)		(0.41	)
Net asset value
End of period/year	$	7.27		$	7.25		$	9.17		$	9.42		$	9.35
Total return(b)		3.89	%(c)		(16.02	)%		2.93	%		6.04	%		0.85	%(c)
Net assets end of period/year	$	95,851		$	128,108		$	370,611		$	221,116		$	110,709
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.85	%(d)		0.77	%		0.80	%		0.86	%		0.85	%(d)
Before reimbursement/fee waiver		0.85	%(d)		0.77	%		0.80	%		0.86	%		0.85	%(d)
Net investment income, to average net assets (e)		6.73	%(d)		5.67	%		5.71	%		5.35	%		4.25	%(d)
Portfolio turnover rate		90	%(c)		98	%		108	%		110	%		58	%(c)

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

58

For a share outstanding throughout each period

	Transamerica Growth Opportunities
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.57		$	11.40		$	8.36		$	7.85		$	6.61		$	5.95
Investment operations
Net investment loss(a)		(0.01	)		(0.06	)		(0.09	)		(0.07	)		(0.02	)		(0.03	)
Net realized and unrealized gain (loss) on investments		0.03			(4.77	)		3.13			0.58			1.26			0.69
Total from investment operations		0.02			(4.83	)		3.04			0.51			1.24			0.66
Net asset value
End of period/year	$	6.59		$	6.57		$	11.40		$	8.36		$	7.85		$	6.61
Total return(b)		0.30	%(c)		(42.37	)%		36.20	%		6.62	%		18.76	%		11.09	%
Net assets end of period/year	$	42,495		$	41,005		$	64,825		$	56,588		$	256,559		$	230,633
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.75	%(d)		1.75	%		1.75	%		1.72	%		1.41	%		1.43	%
Before reimbursement/fee waiver		2.27	%(d)		1.81	%		1.77	%		1.72	%		1.41	%		1.43	%
Net investment loss, to average net assets (e)		(0.23	)%(d)		(0.69	)%		(1.00	)%		(0.89	)%		(0.30	)%		(0.47	)%
Portfolio turnover rate		34	%(c)		45	%		85	%		59	%		34	%		43	%

For a share outstanding throughout each period

	Transamerica Growth Opportunities
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.13		$	10.72		$	7.92		$	7.48		$	6.37		$	5.79
Investment operations
Net investment loss(a)		(0.02	)		(0.12	)		(0.14	)		(0.13	)		(0.09	)		(0.09	)
Net realized and unrealized gain (loss) on investments		0.02			(4.47	)		2.94			0.57			1.20			0.67
Total from investment operations		—			(4.59	)		2.80			0.44			1.11			0.58
Net asset value
End of period/year	$	6.13		$	6.13		$	10.72		$	7.92		$	7.48		$	6.37
Total return(b)		—	%(c)		(42.82	)%		35.35	%		5.88	%		17.43	%		10.02	%
Net assets end of period/year	$	16,006		$	20,823		$	65,123		$	66,098		$	74,589		$	77,869
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.40	%(d)		2.40	%		2.40	%		2.40	%		2.40	%		2.40	%
Before reimbursement/fee waiver		2.99	%(d)		2.46	%		2.45	%		2.46	%		2.61	%		2.64	%
Net investment loss, to average net assets (e)		(0.83	)%(d)		(1.39	)%		(1.66	)%		(1.57	)%		(1.29	)%		(1.44	)%
Portfolio turnover rate		34	%(c)		45	%		85	%		59	%		34	%		43	%

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

59

For a share outstanding throughout each period

	Transamerica Growth Opportunities
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.16		$	10.74		$	7.94		$	7.49		$	6.38		$	5.79
Investment operations
Net investment loss(a)		(0.02	)		(0.11	)		(0.14	)		(0.12	)		(0.09	)		(0.10	)
Net realized and unrealized gain (loss) on investments		0.02			(4.47	)		2.94			0.57			1.20			0.69
Total from investment operations		—			(4.58	)		2.80			0.45			1.11			0.59
Net asset value
End of period/year	$	6.16		$	6.16		$	10.74		$	7.94		$	7.49		$	6.38
Total return(b)		—	%(c),		(42.64	)%		35.26	%		6.01	%		17.40	%		10.19	%
Net assets end of period/year	$	9,820		$	10,619		$	22,656		$	21,688		$	25,432		$	28,103
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.40	%(d)		2.34	%		2.36	%		2.38	%		2.40	%		2.40	%
Before reimbursement/fee waiver		2.72	%(d)		2.34	%		2.36	%		2.38	%		2.54	%		2.65	%
Net investment loss, to average net assets (e)		(0.86	)%(d)		(1.29	)%		(1.61	)%		(1.54	)%		(1.29	)%		(1.58	)%
Portfolio turnover rate		34	%(c)		45	%		85	%		59	%		34	%		43	%

For a share outstanding throughout each period

	Transamerica Growth Opportunities
	Class I
	April 30, 2009			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006(g)
Net asset value
Beginning of period/year	$	6.74		$	11.59		$	8.43		$	7.99
Investment operations
Net investment income (loss)(a)		0.02			0.01			(0.01	)		—	(f)
Net realized and unrealized gain (loss) on investments		0.02			(4.86	)		3.17			0.44
Total from investment operations		0.04			(4.85	)		3.16			0.44
Net asset value
End of period/year	$	6.78		$	6.74		$	11.59		$	8.43
Total return(b)		0.59	%(c)		(41.85	)%		37.49	%		5.51	%(c)
Net assets end of period/year	$	89,788		$	86,425		$	206,863		$	214,775
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.91	%(d)		0.86	%		0.88	%		0.88	%(d)
Before reimbursement/fee waiver		0.91	%(d)		0.86	%		0.88	%		0.88	%(d)
Net investment income (loss), to average net assets(e)		0.61	%(d)		0.15	%		(0.15	)%		(0.06	)%(d)
Portfolio turnover rate		34	%(c)		45	%		85	%		59	%(c)

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

60

For a share outstanding throughout each period

	Transamerica High Yield Bond
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.31		$	9.12		$	9.19		$	8.97		$	9.37		$	9.08
Investment operations
Net investment income(a)		0.34			0.64			0.60			0.61			0.56			0.52
Net realized and unrealized gain (loss) on investments		0.60			(2.83	)		(0.07	)		0.19			(0.37	)		0.29
Total from investment operations		0.94			(2.19	)		0.53			0.80			0.19			0.81
Distributions
Net investment income		(0.35	)		(0.62	)		(0.60	)		(0.58	)		(0.59	)		(0.52	)
Total distributions		(0.35	)		(0.62	)		(0.60	)		(0.58	)		(0.59	)		(0.52	)
Net asset value
End of period/year	$	6.90		$	6.31		$	9.12		$	9.19		$	8.97		$	9.37
Total return(b)		15.83	%(c)		(25.46	)%		5.90	%		9.27	%		2.06	%		9.23	%
Net assets end of period/year	$	33,996		$	24,506		$	35,147		$	43,514		$	336,340		$	309,223
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.20	%(d)		1.16	%		1.15	%		1.16	%		1.05	%		1.08	%
Before reimbursement/fee waiver		1.20	%(d)		1.16	%		1.15	%		1.16	%		1.05	%		1.08	%
Net investment income, to average net assets(e)		10.79	%(d)		7.65	%		6.45	%		6.77	%		6.04	%		5.67	%
Portfolio turnover rate		18	%(c)		38	%		80	%		73	%		71	%		49	%

For a share outstanding throughout each period

	Transamerica High Yield Bond
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.30		$	9.11		$	9.18		$	8.97		$	9.37		$	9.08
Investment operations
Net investment income(a)		0.31			0.58			0.53			0.55			0.48			0.46
Net realized and unrealized gain (loss) on investments		0.61			(2.83	)		(0.06	)		0.19			(0.37	)		0.29
Total from investment operations		0.92			(2.25	)		0.47			0.74			0.11			0.75
Distributions
Net investment income		(0.32	)		(0.56	)		(0.54	)		(0.53	)		(0.51	)		(0.46	)
Total distributions		(0.32	)		(0.56	)		(0.54	)		(0.53	)		(0.51	)		(0.46	)
Net asset value
End of period/year	$	6.90		$	6.30		$	9.11		$	9.18		$	8.97		$	9.37
Total return(b)		15.56	%(c)		(26.04	)%		5.19	%		8.53	%		1.21	%		8.52	%
Net assets end of period/year	$	9,921		$	9,091		$	21,370		$	27,753		$	37,006		$	49,422
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.96	%(d)		1.85	%		1.83	%		1.83	%		1.85	%		1.72	%
Before reimbursement/fee waiver		1.96	%(d)		1.85	%		1.83	%		1.83	%		1.85	%		1.72	%
Net investment income, to average net assets(e)		10.07	%(d)		6.83	%		5.77	%		6.12	%		5.18	%		5.05	%
Portfolio turnover rate		18	%(c)		38	%		80	%		73	%		71	%		49	%

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

61

For a share outstanding throughout each period

	Transamerica High Yield Bond
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	6.30		$	9.10		$	9.17		$	8.96		$	9.36		$	9.08
Investment operations
Net investment income(a)		0.31			0.58			0.53			0.55			0.47			0.46
Net realized and unrealized gain (loss) on investments		0.60			(2.82	)		(0.06	)		0.19			(0.36	)		0.28
Total from investment operations		0.91			(2.24	)		0.47			0.74			0.11			0.74
Distributions
Net investment income		(0.33	)		(0.56	)		(0.54	)		(0.53	)		(0.51	)		(0.46	)
Total distributions		(0.33	)		(0.56	)		(0.54	)		(0.53	)		(0.51	)		(0.46	)
Net asset value
End of period/year	$	6.88		$	6.30		$	9.10		$	9.17		$	8.96		$	9.36
Total return(b)		15.52	%(c)		(25.89	)%		5.21	%		8.54	%		1.21	%		8.41	%
Net assets end of period/year	$	10,753		$	5,429		$	10,160		$	11,317		$	15,880		$	25,379
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.84	%(d)		1.80	%		1.83	%		1.83	%		1.88	%		1.78	%
Before reimbursement/fee waiver		1.84	%(d)		1.80	%		1.83	%		1.83	%		1.88	%		1.78	%
Net investment income, to average net assets(e)		10.03	%(d)		6.93	%		5.77	%		6.12	%		5.11	%		4.95	%
Portfolio turnover rate		18	%(c)		38	%		80	%		73	%		71	%		49	%

For a share outstanding throughout each period

	Transamerica High Yield Bond
	Class I
	April 30, 2009			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005(i)
Net asset value
Beginning of period/year	$	6.35		$	9.17		$	9.24		$	9.02		$	9.39
Investment operations
Net investment income(a)		0.35			0.69			0.65			0.67			0.59
Net realized and unrealized gain (loss) on investments		0.62			(2.85	)		(0.07	)		0.18			(0.37	)
Total from investment operations		0.97			(2.16	)		0.58			0.85			0.22
Distributions
Net investment income		(0.37	)		(0.66	)		(0.65	)		(0.63	)		(0.59	)
Total distributions		(0.37	)		(0.66	)		(0.65	)		(0.63	)		(0.59	)
Net asset value
End of period/year	$	6.95		$	6.35		$	9.17		$	9.24		$	9.02
Total return(b)		16.25	%(c)		(25.05	)%		6.39	%		9.81	%		2.33	%(c)
Net assets end of period/year	$	344,447		$	418,923		$	331,300		$	315,252		$	40,860
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.66	%(d)		0.65	%		0.65	%		0.66	%		0.66	%(d)
Before reimbursement/fee waiver		0.66	%(d)		0.65	%		0.65	%		0.66	%		0.66	%(d)
Net investment income, to average net assets(e)		11.43	%(d)		8.34	%		6.96	%		7.29	%		6.60	%(d)
Portfolio turnover rate		18	%(c)		38	%		80	%		73	%		71	%(c)

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

62

For a share outstanding throughout each period

	Transamerica Legg Mason Partners All Cap
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	9.98		$	17.08		$	18.18		$	16.10		$	14.80		$	13.95
Investment operations
Net investment income (loss)(a)		0.05			0.12			0.07			0.09			0.06			(0.03	)
Net realized and unrealized gain (loss) on investments		(0.80	)		(5.73	)		1.49			2.55			1.24			0.88
Total from investment operations		(0.75	)		(5.61	)		1.56			2.64			1.30			0.85
Distributions
Net investment income		(0.15	)		—			(0.06	)		(0.01	)		—	(f)		—
Net realized gains on investments		—			(1.49	)		(2.60	)		(0.55	)		—			—
Total distributions		(0.15	)		(1.49	)		(2.66	)		(0.56	)		—	(f)		—
Net asset value
End of period/year	$	9.08		$	9.98		$	17.08		$	18.18		$	16.10		$	14.80
Total return(b)		(7.58	)%(c)		(35.81	)%		9.27	%		16.74	%		8.79	%		6.09	%
Net assets end of period/year	$	26,920		$	28,237		$	49,938		$	55,622		$	173,929		$	438,047
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.55	%(d)		1.55	%		1.55	%		1.55	%		1.32	%		1.33	%
Before reimbursement/fee waiver		1.91	%(d)		1.59	%		1.56	%		1.57	%		1.32	%		1.33	%
Net investment income (loss), to average net assets(e)		1.15	%(d)		0.85	%		0.42	%		0.52	%		0.36	%		(0.17	)%
Portfolio turnover rate		15	%(c)		27	%		17	%		25	%		27	%		25	%

For a share outstanding throughout each period

	Transamerica Legg Mason Partners All Cap
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	9.24		$	16.01		$	17.24		$	15.39		$	14.27		$	13.53
Investment operations
Net investment income (loss)(a)		0.02			0.02			(0.03	)		(0.03	)		(0.09	)		(0.11	)
Net realized and unrealized gain (loss) on investments		(0.75	)		(5.30	)		1.40			2.43			1.21			0.85
Total from investment operations		(0.73	)		(5.28	)		1.37			2.40			1.12			0.74
Distributions
Net investment income		(0.03	)		—			—			—	(f)		—			—
Net realized gains on investments		—			(1.49	)		(2.60	)		(0.55	)		—			—
Total distributions		(0.03	)		(1.49	)		(2.60	)		(0.55	)		—			—
Net asset value
End of period/year	$	8.48		$	9.24		$	16.01		$	17.24		$	15.39		$	14.27
Total return(b)		(7.93	)%(c)		(36.18	)		% 8.57	%		15.97	%		7.84			% 5.48	%
Net assets end of period/year	$	23,175		$	33,670		$	88,268		$	109,567		$	123,494		$	150,829
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.20	%		2.19	%		2.20	%		2.19	%		1.97	%
Before reimbursement/fee waiver		2.66	%(d)		2.24	%		2.19	%		2.21	%		2.19	%		1.97	%
Net investment income (loss), to average net assets(e)		0.57	%(d)		0.20	%		(0.22	)%		(0.17	)%		(0.58	)%		(0.80	)%
Portfolio turnover rate		15	%(c)		27	%		17	%		25	%		27	%		25	%

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

63

For a share outstanding throughout each period

	Transamerica Legg Mason Partners All Cap
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	9.26		$	16.04		$	17.25		$	15.39		$	14.26		$	13.53
Investment operations
Net investment income (loss)(a)		0.02			0.03			(0.02	)		(0.02	)		(0.08	)		(0.12	)
Net realized and unrealized gain (loss) on investments		(0.76	)		(5.32	)		1.41			2.43			1.21			0.85
Total from investment operations		(0.74	)		(5.29	)		1.39			2.41			1.13			0.73
Distributions
Net investment income		(0.05	)		—			—			—	(f)		—			—
Net realized gains on investments		—			(1.49	)		(2.60	)		(0.55	)		—			—
Total distributions		(0.05	)		(1.49	)		(2.60	)		(0.55	)		—			—
Net asset value
End of period/year	$	8.47		$	9.26		$	16.04		$	17.25		$	15.39		$	14.26
Total return(b)		(7.97	)%(c)		(36.17	)%		8.70	%		16.04	%		7.89	%		5.43	%
Net assets end of period/year	$	12,396		$	15,316		$	35,568		$	41,340		$	49,909		$	65,391
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.15	%		2.13	%		2.15	%		2.15	%		1.99	%
Before reimbursement/fee waiver		2.44	%(d)		2.15	%		2.13	%		2.15	%		2.15	%		1.99	%
Net investment income (loss), to average net assets(e)		0.54	%(d)		0.26	%		(0.15	)%		(0.12	)%		(0.53	)%		(0.83	)%
Portfolio turnover rate		15	%(c)		27	%		17	%		25	%		27	%		25	%

For a share outstanding throughout each period

	Transamerica Money Market
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Investment operations
Net investment income(a)		—	(f)		0.02			0.05			0.04			0.02			—	(f)
Net realized and unrealized gain on investments		—			—	(f)		—			—			—			—
Total from investment operations		—	(f)		0.02			0.05			0.04			0.02			—	(f)
Distributions
Net investment income		—	(f)		(0.02	)		(0.05	)		(0.04	)		(0.02	)		—	(f)
Net realized gains on investments		—			—			—	(f)		—			—			—
Total distributions		—	(f)		(0.02	)		(0.05	)		(0.04	)		(0.02	)		—	(f)
Net asset value
End of period/year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total return(b)		0.21	%(c)		2.52	%		4.61	%		4.09	%		2.10	%		0.42	%
Net assets end of period/year	$	155,852		$	142,456		$	95,766		$	78,716		$	150,804		$	185,311
Ratio and supplemental data
Expenses to average net assets(k)(l)
After reimbursement/fee waiver		0.80	%(d)		0.83	%		0.83	%		0.83	%		0.83	%		0.83	%
Before reimbursement/fee waiver		1.06	%(d)		1.08	%		1.20	%		1.23	%		1.05	%		1.19	%
Net investment income, to average net assets(e)		0.41	%(d)		2.40	%		4.54	%		3.98	%		2.08	%		0.45	%

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

64

For a share outstanding throughout each period

	Transamerica Money Market
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Investment operations
Net investment income(a)		—	(f)		0.02			0.04			0.03			0.02			—	(f)
Net realized and unrealized gain on investments		—			—	(f)		—			—			—			—
Total from investment operations		—	(f)		0.02			0.04			0.03			0.02			—	(f)
Distributions
Net investment income		—	(f)		(0.02	)		(0.04	)		(0.03	)		(0.02	)		—	(f)
Net realized gains on investments		—			—			—	(f)		—			—			—
Total distributions		—	(f)		(0.02	)		(0.04	)		(0.03	)		(0.02	)		—	(f)
Net asset value
End of period/year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total return(b)		0.08	%(c)		1.83	%		3.92	%		3.41	%		1.60	%		0.14	%
Net assets end of period/year	$	45,161		$	40,110		$	23,324		$	25,727		$	31,647		$	40,203
Ratio and supplemental data
Expenses to average net assets(k)(l)
After reimbursement/fee waiver		1.03	%(d)		1.48	%		1.48	%		1.48	%		1.32	%		1.10	%
Before reimbursement/fee waiver		1.70	%(d)		1.75	%		1.83	%		1.80	%		1.79	%		1.81	%
Net investment income, to average net assets(e)		0.16	%(d)		1.75	%		3.87	%		3.50	%		1.57	%		0.13	%

For a share outstanding throughout each period

	Transamerica Money Market
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Investment operations
Net investment income(a)		—	(f)		0.02			0.04			0.03			0.02			—	(f)
Net realized and unrealized gain on investments		—			—	(f)		—			—			—			—
Total from investment operations		—	(f)		0.02			0.04			0.03			0.02			—	(f)
Distributions
Net investment income		—	(f)		(0.02	)		(0.04	)		(0.03	)		(0.02	)		—	(f)
Net realized gains on investments		—			—			—	(f)		—			—			—
Total distributions		—	(f)		(0.02	)		(0.04	)		(0.03	)		(0.02	)		—	(f)
Net asset value
End of period/year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total return(b)		0.07	%(c)		1.86	%		3.92	%		3.16	%		1.87	%		0.14	%
Net assets end of period/year	$	69,453		$	59,991		$	19,638		$	17,286		$	15,997		$	22,277
Ratio and supplemental data
Expenses to average net assets(k)(l)
After reimbursement/fee waiver		1.04	%(d)		1.48	%		1.48	%		1.48	%		1.26	%		0.98	%
Before reimbursement/fee waiver		1.60	%(d)		1.67	%		1.73	%		1.82	%		1.89	%		1.96	%
Net investment income, to average net assets(e)		0.14	%(d)		1.65	%		3.88	%		3.40	%		1.61	%		0.43	%

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

65

For a share outstanding throughout each period

	Transamerica Money Market
	Class I
	April 30, 2009			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006(g)
Net asset value
Beginning of period/year	$	1.00		$	1.00		$	1.00		$	1.00
Investment operations
Net investment income(a)		—	(f)		0.03			0.05			0.04
Net realized and unrealized gain on investments		—			—	(f)		—			—
Total from investment operations		—	(f)		0.03			0.05			0.04
Distributions
Net investment income		—	(f)		(0.03	)		(0.05	)		(0.04	)
Net realized gains on investments		—			—			—	(f)		—
Total distributions		—	(f)		(0.03	)		(0.05	)		(0.04	)
Net asset value
End of period/year	$	1.00		$	1.00		$	1.00		$	1.00
Total return(b)		0.34	%(c)		2.84	%		4.98	%		4.30	%(c)
Net assets end of period/year	$	38,612		$	29,327		$	34,673		$	26,466
Ratio and supplemental data
Expenses to average net assets(l)
After reimbursement/fee waiver		0.51	%(d)		0.48	%		0.48	%		0.48	%(d)
Before reimbursement/fee waiver		0.53	%(d)		0.49	%		0.52	%		0.51	%(d)
Net investment income, to average net assets(e)		0.69	%(d)		2.89	%		4.88	%		4.39	%(d)

For a share outstanding throughout each period

	Transamerica Science & Technology
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	2.84		$	5.67		$	3.91		$	3.82		$	3.80		$	3.61
Investment operations
Net investment income (loss)(a)		(0.01	)		(0.04	)		(0.05	)		(0.03	)		0.03			(0.04	)
Net realized and unrealized gain (loss) on investments		0.06			(2.61	)		1.81			0.18			0.02			0.23
Total from investment operations		0.05			(2.65	)		1.76			0.15			0.05			0.19
Distributions
Net investment income		—			—			—			—			(0.03	)		—
Net realized gains on investments		—			(0.18	)		—			(0.06	)		—			—
Total distributions		—			(0.18	)		—			(0.06	)		(0.03	)		—
Net asset value
End of period/year	$	2.89		$	2.84		$	5.67		$	3.91		$	3.82		$	3.80
Total return(b)		1.76	%(c)		(48.18	)%		45.01	%		3.78	%		1.23	%		5.26	%
Net assets end of period/year	$	3,839		$	3,778		$	7,874		$	5,616		$	65,423		$	119,985
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.53	%(d)		1.53	%		1.53	%		1.53	%		1.32	%		1.36	%
Before reimbursement/fee waiver		2.23	%(d)		1.70	%		1.77	%		1.67	%		1.32	%		1.36	%
Net investment income (loss), to average net assets(e)		(0.83	)%(d)		(1.02	)%		(1.03	)%		(0.72	)%		0.63	%		(1.12	)%
Portfolio turnover rate		36	%(c)		47	%		66	%		94	%		73	%		41	%

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

66

For a share outstanding throughout each period

	Transamerica Science & Technology
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	2.68		$	5.40		$	3.74		$	3.68		$	3.68		$	3.51
Investment operations
Net investment loss(a)		(0.02	)		(0.07	)		(0.07	)		(0.06	)		(0.02	)		(0.06	)
Net realized and unrealized gain (loss) on investments		0.06			(2.47	)		1.73			0.18			0.02			0.23
Total from investment operations		0.04			(2.54	)		1.66			0.12			—			0.17
Distributions
Net realized gains on investments		—			(0.18	)		—			(0.06	)		—			—
Total distributions		—			(0.18	)		—			(0.06	)		—			—
Net asset value
End of period/year	$	2.72		$	2.68		$	5.40		$	3.74		$	3.68		$	3.68
Total return(b)		1.49	%(c)		(48.56	)%		44.39	%		3.10	%		—	%		4.84	%
Net assets end of period/year	$	1,640		$	2,094		$	4,913		$	4,208		$	5,316		$	6,874
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.18	%(d)		2.18	%		2.18	%		2.18	%		2.20	%		1.91	%
Before reimbursement/fee waiver		3.20	%(d)		2.53	%		2.53	%		2.57	%		2.68	%		1.91	%
Net investment loss, to average net assets(e)		(1.48	)%(d)		(1.67	)%		(1.67	)%		(1.58	)%		(0.58	)%		(1.68	)%
Portfolio turnover rate		36	%(c)		47	%		66	%		94	%		73	%		41	%

For a share outstanding throughout each period

	Transamerica Science & Technology
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	2.68		$	5.39		$	3.73		$	3.67		$	3.67		$	3.51
Investment operations
Net investment loss(a)		(0.02	)		(0.07	)		(0.07	)		(0.06	)		(0.02	)		(0.07	)
Net realized and unrealized gain (loss) on investments		0.06			(2.46	)		1.73			0.18			0.02			0.23
Total from investment operations		0.04			(2.53	)		1.66			0.12			—			0.16
Distributions
Net realized gains on investments		—			(0.18	)		—			(0.06	)		—			—
Total distributions		—			(0.18	)		—			(0.06	)		—			—
Net asset value
End of period/year	$	2.72		$	2.68		$	5.39		$	3.73		$	3.67		$	3.67
Total return(b)		1.49	%(c)		(48.46	)%		44.50	%		3.11	%		—	%		4.56	%
Net assets end of period/year	$	1,259		$	1,417		$	2,799		$	2,045		$	2,779		$	4,089
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.18	%(d)		2.18	%		2.18	%		2.18	%		2.20	%		2.20	%
Before reimbursement/fee waiver		2.74	%(d)		2.31	%		2.36	%		2.35	%		2.65	%		2.60	%
Net investment loss, to average net assets(e)		(1.48	)%(d)		(1.67	)%		(1.63	)%		(1.57	)%		(0.51	)%		(1.94	)%
Portfolio turnover rate		36	%(c)		47	%		66	%		94	%		73	%		41	%

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

67

For a share outstanding throughout each period

													Transamerica Short-Term
	Transamerica Science & Technology												Bond
	Class I												Class A
	April 30, 2009			October 31,			October 31,			October 31,			April 30, 2009			October 31,
	(unaudited)			2008			2007			2006(g)			(unaudited)			2008(j)
Net asset value
Beginning of period/year	$	2.89		$	5.74		$	3.93		$	3.98		$	9.44		$	10.00
Investment operations
Net investment income (loss)(a)		—	(f)		(0.02	)		(0.02	)		(0.01	)		0.22			0.38
Net realized and unrealized gain (loss) on investments		0.06			(2.65	)		1.83			0.02			0.31			(0.54	)
Total from investment operations		0.06			(2.67	)		1.81			0.01			0.53			(0.16	)
Distributions
Net investment income		—			—			—			—			(0.22	)		(0.40	)
Net realized gains on investments		—			(0.18	)		—			(0.06	)		—			—
Total distributions		—			(0.18	)		—			(0.06	)		(0.22	)		(0.40	)
Net asset value
End of period/year	$	2.95		$	2.89		$	5.74		$	3.93		$	9.75		$	9.44
Total return(b)		2.08	%(c)		(47.93	)%		46.06	%		0.12	%(c)		5.65	%(c)		(1.70	)%(c)
Net assets end of period/year	$	45,789		$	46,222		$	84,206		$	57,642		$	41,188		$	5,663
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.06	%(d)		0.91	%		0.92	%		0.92	%(d)		1.09	%(d)		1.11	%(d)
Before reimbursement/fee waiver		1.06	%(d)		0.91	%		0.92	%		0.92	%(d)		1.09	%(d)		1.11	%(d)
Net investment income (loss), to average net assets(e)		(0.36	)%(d)		(0.41	)%		(0.41	)%		(0.35	)%(d)		4.56	%(d)		3.92	%(d)
Portfolio turnover rate		36	%(c)		47	%		66	%		94	%(c)		47	%(c)		67	%(c)

For a share outstanding throughout each period

	Transamerica Short-Term
	Bond
	Class C
	April 30, 2009			October 31,
	(unaudited)			2008(j)
Net asset value
Beginning of period/year	$	9.42		$	10.00
Investment operations
Net investment income(a)		0.18			0.32
Net realized and unrealized gain (loss) on investments		0.32			(0.55	)
Total from investment operations		0.50			(0.23	)
Distributions
Net investment income		(0.19	)		(0.35	)
Total distributions		(0.19	)		(0.35	)
Net asset value
End of period/year	$	9.73		$	9.42
Total return(b)		5.43	%(c)		(2.43	)%(c)
Net assets end of period/year	$	52,943		$	7,263
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.72	%(d)		1.76	%(d)
Before reimbursement/fee waiver		1.72	%(d)		1.76	%(d)
Net investment income, to average net assets(e)		3.89	%(d)		3.28	%(d)
Portfolio turnover rate		47	%(c)		67	%(c)

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

68

For a share outstanding throughout each period

	Transamerica Short-Term Bond
	Class I
	April 30, 2009			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005(i)
Net asset value
Beginning of period/year	$	9.28		$	9.82		$	9.84		$	9.79		$	10.00
Investment operations
Net investment income(a)		0.22			0.43			0.47			0.40			0.28
Net realized and unrealized gain (loss) on investments		0.32			(0.54	)		(0.04	)		0.05			(0.22	)
Total from investment operations		0.54			(0.11	)		0.43			0.45			0.06
Distributions
Net investment income		(0.23	)		(0.43	)		(0.45	)		(0.40	)		(0.27	)
Total distributions		(0.23	)		(0.43	)		(0.45	)		(0.40	)		(0.27	)
Net asset value
End of period/year	$	9.59		$	9.28		$	9.82		$	9.84		$	9.79
Total return(b)		5.96	%(c)		(1.22	)%		4.45	%		4.72	%		0.49	%(c)
Net assets end of period/year	$	622,006		$	492,333		$	563,889		$	379,442		$	174,302
Expenses to average net assets
After reimbursement/fee waiver		0.69	%(d)		0.68	%		0.67	%		0.70	%		0.71	%(d)
Before reimbursement/fee waiver		0.69	%(d)		0.68	%		0.67	%		0.70	%		0.71	%(d)
Net investment income, to average net assets (e)		4.70	%(d)		4.38	%		4.81	%		4.10	%		2.92	%(d)
Portfolio turnover rate		47	%(c)		67	%		117	%		100	%		153	%(c)

For a share outstanding throughout each period

	Transamerica Small/Mid Cap Value
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	12.70		$	23.78		$	17.78		$	16.69		$	14.32		$	12.94
Investment operations
Net investment income(a)		0.03			0.21			0.14			0.28			0.03			0.04
Net realized and unrealized gain (loss) on investments		0.31			(8.64	)		6.30			1.96			2.85			2.56
Total from investment operations		0.34			(8.43	)		6.44			2.24			2.88			2.60
Distributions
Net investment income		(0.31	)		(0.16	)		(0.13	)		(0.03	)		(0.09	)		—
Net realized gains on investments		—			(2.49	)		(0.31	)		(1.12	)		(0.42	)		(1.22	)
Total distributions		(0.31	)		(2.65	)		(0.44	)		(1.15	)		(0.51	)		(1.22	)
Net asset value
End of period/year	$	12.73		$	12.70		$	23.78		$	17.78		$	16.69		$	14.32
Total return(b)		3.01	%(c)		(39.47	)%		36.99	%		13.97	%		20.41	%		20.61	%
Net assets end of period/year	$	142,546		$	199,210		$	96,667		$	47,014		$	386,346		$	334,763
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.75	%(d)		1.41	%		1.41	%		1.39	%		1.24	%		1.32	%
Before reimbursement/fee waiver		1.75	%(d)		1.41	%		1.41	%		1.39	%		1.24	%		1.32	%
Net investment income, to average net assets (e)		0.66	%(d)		1.18	%		0.71	%		1.61	%		0.20	%		0.31	%
Portfolio turnover rate		54	%(c)		48	%		22	%		21	%		42	%		81	%

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

69

For a share outstanding throughout each period

	Transamerica Small/Mid Cap Value
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	12.19		$	22.89		$	17.12		$	16.21		$	13.97		$	12.73
Investment operations
Net investment income (loss)(a)		—	(f)		0.06			0.02			(0.01	)		(0.11	)		(0.06	)
Net realized and unrealized gain (loss) on investments		0.31			(8.27	)		6.06			2.07			2.77			2.52
Total from investment operations		0.31			(8.21	)		6.08			2.06			2.66			2.46
Distributions
Net investment income		(0.21	)		—			—			(0.03	)		—			—
Net realized gains on investments		—			(2.49	)		(0.31	)		(1.12	)		(0.42	)		(1.22	)
Total distributions		(0.21	)		(2.49	)		(0.31	)		(1.15	)		(0.42	)		(1.22	)
Net asset value
End of period/year	$	12.29		$	12.19		$	22.89		$	17.12		$	16.21		$	13.97
Total return(b)		2.73	%(c)		(39.85	)%		36.09	%		13.21	%		19.30	%		19.85	%
Net assets end of period/year	$	29,937		$	31,716		$	53,285		$	47,007		$	46,410		$	40,477
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.35	%(d)		2.07	%		2.07	%		2.10	%		2.14	%		1.97	%
Before reimbursement/fee waiver		2.35	%(d)		2.07	%		2.07	%		2.10	%		2.14	%		1.97	%
Net investment income (loss), to average net assets(e)		0.03	%(d)		0.34	%		0.12	%		(0.06	)%		(0.70	)%		(0.43	)%
Portfolio turnover rate		54	%(c)		48	%		22	%		21	%		42	%		81	%

For a share outstanding throughout each period

	Transamerica Small/Mid Cap Value
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	12.10		$	22.81		$	17.09		$	16.18		$	13.96		$	12.73
Investment operations
Net investment income (loss)(a)		—	(f)		0.09			0.02			—	(f)		(0.12	)		(0.01	)
Net realized and unrealized gain (loss) on investments		0.29			(8.24	)		6.05			2.06			2.77			2.46
Total from investment operations		0.29			(8.15	)		6.07			2.06			2.65			2.45
Distributions
Net investment income		(0.25	)		(0.07	)		(0.04	)		(0.03	)		(0.01	)		—
Net realized gains on investments		—			(2.49	)		(0.31	)		(1.12	)		(0.42	)		(1.22	)
Total distributions		(0.25	)		(2.56	)		(0.35	)		(1.15	)		(0.43	)		(1.22	)
Net asset value
End of period/year	$	12.14		$	12.10		$	22.81		$	17.09		$	16.18		$	13.96
Total return(b)		2.78	%(c)		(39.84	)%		36.16	%		13.23	%		19.22	%		19.78	%
Net assets end of period/year	$	87,795		$	95,729		$	63,856		$	29,105		$	21,532		$	19,678
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.29	%(d)		2.04	%		2.04	%		2.08	%		2.20	%		2.07	%
Before reimbursement/fee waiver		2.29	%(d)		2.04	%		2.04	%		2.08	%		2.20	%		2.07	%
Net investment income (loss), to average net assets(e)		0.08	%(d)		0.52	%		0.10	%		(0.03	)%		(0.76	)%		(0.02	)%
Portfolio turnover rate		54	%(c)		48	%		22	%		21	%		42	%		81	%

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

70

For a share outstanding throughout each period

	Transamerica Small/Mid Cap Value
	Class I
	April 30, 2009			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006(g)
Net asset value
Beginning of period/year	$	12.81		$	23.91		$	17.87		$	16.84
Investment operations
Net investment income(a)		0.08			0.30			0.26			0.18
Net realized and unrealized gain (loss) on investments		0.30			(8.67	)		6.32			1.97
Total from investment operations		0.38			(8.37	)		6.58			2.15
Distributions
Net investment income		(0.41	)		(0.24	)		(0.23	)		—
Net realized gains on investments		—			(2.49	)		(0.31	)		(1.12	)
Total distributions		(0.41	)		(2.73	)		(0.54	)		(1.12	)
Net asset value
End of period/year	$	12.78		$	12.81		$	23.91		$	17.87
Total return(b)		3.43	%(c)		(39.11	)%		37.78	%		13.30	%(c)
Net assets end of period/year	$	9,647		$	214,351		$	487,605		$	478,728
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.89	%(d)		0.85	%		0.85	%		0.86	%(d)
Before reimbursement/fee waiver		0.89	%(d)		0.85	%		0.85	%		0.86	%(d)
Net investment income, to average net assets(e)		1.34	%(d)		1.58	%		1.30	%		1.05	%(d)
Portfolio turnover rate		54	%(c)		48	%		22	%		21	%(c)

For a share outstanding throughout each period

	Transamerica Templeton Global
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	19.63		$	35.83		$	29.28		$	24.68		$	22.57		$	21.41
Investment operations
Net investment income (loss)(a)		0.12			0.33			0.19			0.15			0.21			(0.07	)
Net realized and unrealized gain (loss) on investments		(0.75	)		(16.19	)		6.70			4.45			2.14			1.23
Total from investment operations		(0.63	)		(15.86	)		6.89			4.60			2.35			1.16
Distributions
Net investment income		(0.18	)		(0.34	)		(0.34	)		—	(f)		(0.24	)		—
Total distributions		(0.18	)		(0.34	)		(0.34	)		—	(f)		(0.24	)		—
Net asset value
End of period/year	$	18.82		$	19.63		$	35.83		$	29.28		$	24.68		$	22.57
Total return(b)		(3.23	)%(c)		(44.68	)%		23.74	%		18.65	%		10.41	%		5.41	%
Net assets end of period/year	$	66,649		$	73,721		$	118,738		$	117,367		$	385,504		$	226,517
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.55	%(d)		1.55	%		1.55	%		1.55	%		1.42	%		1.85	%
Before reimbursement/fee waiver		2.10	%(d)		1.61	%		1.63	%		1.62	%		1.42	%		1.85	%
Net investment income (loss), to average net assets(e)		1.30	%(d)		1.13	%		0.59	%		0.55	%		0.85	%		(0.31	)%
Portfolio turnover rate		14	%(c)		28	%		30	%		55	%		79	%		140	%

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

71

For a share outstanding throughout each period

	Transamerica Templeton Global
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	18.41		$	33.52		$	27.40		$	23.24		$	21.23		$	20.25
Investment operations
Net investment income (loss)(a)		0.05			0.08			(0.02	)		(0.01	)		0.02			(0.20	)
Net realized and unrealized gain (loss) on investments		(0.71	)		(15.14	)		6.28			4.17			1.99			1.18
Total from investment operations		(0.66	)		(15.06	)		6.26			4.16			2.01			0.98
Distributions
Net investment income		—			(0.05	)		(0.14	)		—			—	(f)		—
Total distributions		—			(0.05	)		(0.14	)		—			—	(f)		—
Net asset value
End of period/year	$	17.75		$	18.41		$	33.52		$	27.40		$	23.24		$	21.23
Total return(b)		(3.59	)%(c)		(44.99	)%		22.94	%		17.90	%		9.48	%		4.83	%
Net assets end of period/year	$	8,209		$	10,746		$	63,876		$	75,711		$	90,877		$	117,409
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.20	%		2.20	%		2.20	%		2.20	%		2.49	%
Before reimbursement/fee waiver		3.25	%(d)		2.44	%		2.39	%		2.42	%		2.41	%		2.49	%
Net investment income (loss), to average net assets(e)		0.62	%(d)		0.29	%		(0.07	)%		(0.05	)%		0.07	%		(0.93	)%
Portfolio turnover rate		14	%(c)		28	%		30	%		55	%		79	%		140	%

For a share outstanding throughout each period

	Transamerica Templeton Global
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	18.27		$	33.47		$	27.37		$	23.21		$	21.21		$	20.25
Investment operations
Net investment income (loss)(a)		0.05			0.12			(0.02	)		(0.01	)		0.02			(0.15	)
Net realized and unrealized gain (loss) on investments		(0.70	)		(15.10	)		6.27			4.17			1.99			1.11
Total from investment operations		(0.65	)		(14.98	)		6.25			4.16			2.01			0.96
Distributions
Net investment income		—			(0.22	)		(0.15	)		—			(0.01	)		—
Total distributions		—			(0.22	)		(0.15	)		—			(0.01	)		—
Net asset value
End of period/year	$	17.62		$	18.27		$	33.47		$	27.37		$	23.21		$	21.21
Total return(b)		(3.56	)%(c)		(45.05	)%		22.95	%		17.87	%		9.52	%		4.74	%
Net assets end of period/year	$	12,406		$	14,286		$	31,506		$	32,341		$	36,938		$	48,378
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.20	%		2.20	%		2.20	%		2.20	%		2.18	%
Before reimbursement/fee waiver		2.73	%(d)		2.26	%		2.31	%		2.35	%		2.38	%		2.18	%
Net investment income (loss), to average net assets(e)		0.64	%(d)		0.43	%		(0.07	)%		(0.05	)%		0.07	%		(0.72	)%
Portfolio turnover rate		14	%(c)		28	%		30	%		55	%		79	%		140	%

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

72

For a share outstanding throughout each period

	Transamerica Value Balanced
	Class A
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	8.91		$	14.38		$	13.30		$	11.95		$	12.11		$	11.49
Investment operations
Net investment income(a)		0.14			0.30			0.28			0.23			0.24			0.18
Net realized and unrealized gain (loss) on investments		(0.49	)		(4.74	)		1.41			1.54			0.69			0.61
Total from investment operations		(0.35	)		(4.44	)		1.69			1.77			0.93			0.79
Distributions
Net investment income		(0.12	)		(0.31	)		(0.23	)		(0.24	)		(0.25	)		(0.17	)
Net realized gains on investments		—			(0.72	)		(0.38	)		(0.18	)		(0.84	)		—
Total distributions		(0.12	)		(1.03	)		(0.61	)		(0.42	)		(1.09	)		(0.17	)
Net asset value
End of period/year	$	8.44		$	8.91		$	14.38		$	13.30		$	11.95		$	12.11
Total return(b)		(3.87	)%(c)		(32.94	)%		13.11	%		15.09	%		7.79	%		6.99	%
Net assets end of period/year	$	16,077		$	18,666		$	32,485		$	32,666		$	32,934		$	37,393
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.55	%(d)		1.55	%		1.55	%		1.55	%		1.55	%		1.55	%
Before reimbursement/fee waiver		1.89	%(d)		1.56	%		1.58	%		1.63	%		1.59	%		1.63	%
Net investment income, to average net assets(e)		3.19	%(d)		2.51	%		2.06	%		1.84	%		2.03	%		1.50	%
Portfolio turnover rate		55	%(c)		50	%		42	%		42	%		57	%		122	%

For a share outstanding throughout each period

	Transamerica Value Balanced
	Class B
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	8.88		$	14.32		$	13.25		$	11.91		$	12.07		$	11.46
Investment operations
Net investment income(a)		0.11			0.22			0.19			0.15			0.17			0.10
Net realized and unrealized gain (loss) on investments		(0.49	)		(4.72	)		1.41			1.53			0.68			0.61
Total from investment operations		(0.38	)		(4.50	)		1.60			1.68			0.85			0.71
Distributions
Net investment income		(0.09	)		(0.22	)		(0.15	)		(0.16	)		(0.17	)		(0.10	)
Net realized gains on investments		—			(0.72	)		(0.38	)		(0.18	)		(0.84	)		—
Total distributions		(0.09	)		(0.94	)		(0.53	)		(0.34	)		(1.01	)		(0.10	)
Net asset value
End of period/year	$	8.41		$	8.88		$	14.32		$	13.25		$	11.91		$	12.07
Total return(b)		(4.20	)%(c)		(33.37	)%		12.40	%		14.28	%		7.13	%		6.23	%
Net assets end of period/year	$	4,592		$	6,414		$	17,508		$	20,405		$	24,072		$	29,409
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.20	%		2.20	%		2.20	%		2.20	%		2.20	%
Before reimbursement/fee waiver		2.75	%(d)		2.30	%		2.27	%		2.28	%		2.27	%		2.30	%
Net investment income, to average net assets(e)		2.55	%(d)		1.83	%		1.43	%		1.20	%		1.39	%		0.81	%
Portfolio turnover rate		55	%(c)		50	%		42	%		42	%		57	%		122	%

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

73

For a share outstanding throughout each period

	Transamerica Value Balanced
	Class C
	April 30, 2009			October 31,			October 31,			October 31,			October 31,			October 31,
	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	8.87		$	14.31		$	13.25		$	11.91		$	12.07		$	11.46
Investment operations
Net investment income(a)		0.11			0.22			0.19			0.15			0.17			0.11
Net realized and unrealized gain (loss) on investments		(0.48	)		(4.72	)		1.41			1.53			0.69			0.60
Total from investment operations		(0.37	)		(4.50	)		1.60			1.68			0.86			0.71
Distributions
Net investment income		(0.09	)		(0.22	)		(0.16	)		(0.16	)		(0.18	)		(0.10	)
Net realized gains on investments		—			(0.72	)		(0.38	)		(0.18	)		(0.84	)		—
Total distributions		(0.09	)		(0.94	)		(0.54	)		(0.34	)		(1.02	)		(0.10	)
Net asset value
End of period/year	$	8.41		$	8.87		$	14.31		$	13.25		$	11.91		$	12.07
Total return(b)		(4.10	)%(c)		(33.33	)%		12.40	%		14.33	%		7.18	%		6.31	%
Net assets end of period/year	$	4,803		$	5,833		$	11,674		$	11,316		$	11,926		$	14,285
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		2.20	%(d)		2.13	%		2.17	%		2.20	%		2.16	%		2.20	%
Before reimbursement/fee waiver		2.41	%(d)		2.13	%		2.17	%		2.20	%		2.16	%		2.39	%
Net investment income, to average net assets(e)		2.54	%(d)		1.92	%		1.44	%		1.19	%		1.43	%		0.78	%
Portfolio turnover rate		55	%(c)		50	%		42	%		42	%		57	%		122	%

(a)	Calculation is based on average number of shares outstanding.
(b)	Total return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase.
(c)	Not annualized.
(d)	Annualized.
(e)	Includes Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B, Class C, and Class T, respectively.
(f)	Rounds to less than $(0.01) or $0.01.
(g)	Commenced operations November 15, 2005.
(h)	Commenced operations October 27, 2006.
(i)	Commenced operations November 8, 2004.
(j)	Commenced operations November 1, 2007.
(k)	Expenses are inclusive of treasury guarantee expenses with total impacts of 0.04% for Class A, and 0.03% for Classes B, C, and I.
(l)	Expenses were waived to sustain a positive yield with a total impact of (0.07%), (0.48%), and (0.46%) for Classes A, B, and C, respectively.

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

74

NOTES TO FINANCIAL STATEMENTS
At April 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Transamerica Funds (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Transamerica Balanced, Transamerica Convertible Securities, Transamerica Equity, Transamerica Flexible Income, Transamerica Growth Opportunities, Transamerica High Yield Bond, Transamerica Legg Mason Partners All Cap, Transamerica Money Market, Transamerica Science & Technology, Transamerica Short-Term Bond, Transamerica Small/Mid Cap Value, Transamerica Templeton Global and Transamerica Value Balanced (each, a “Fund”; collectively, the “Funds”) are part of Transamerica Funds.

The Funds, except Transamerica Balanced, Transamerica Equity, Transamerica Legg Mason Partners All Cap, Transamerica Short-Term Bond, Transamerica Templeton Global and Transamerica Value Balanced, currently have four classes of shares; Class A, Class B, Class C, and Class I. Transamerica Balanced, Transamerica Legg Mason Partners All Cap, Transamerica Templeton Global, and Transamerica Value Balanced currently have three classes of shares; Class A, Class B, and Class C. Transamerica Equity currently has five classes of shares; Class A, Class B, Class C, Class I, and Class T. Transamerica Short-Term Bond currently has three classes of shares: Class A, Class C, and Class I. Class T shares are not available to new investors. Each of the above classes has a public offering price that reflects different sales charges, if any, and expense levels. Class I shares are currently available for investment primarily to certain affiliated asset allocation funds.

Class I shares may also be made available to other investors, including institutional investors and eligible retirement plans whose record keepers or financial service firm intermediaries have entered into agreements with Transamerica Funds or its agents. Class B shares will convert to Class A shares eight years after purchase.

Transamerica Legg Mason Partners All Cap and Transamerica Science & Technology are “non-diversified” under the 1940 Act.

This report should be read in conjunction with the Funds’ current prospectus, which contains more complete information about the Funds.

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

In preparing the Funds’ 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 Funds.

Multiple class operations, income and expenses: Income, non-class specific expenses and realized and unrealized gains and losses are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.

Security valuations: The Funds value their investments at the close of the New York Stock Exchange (“NYSE”), normally 4 p.m. ET, each day the NYSE is open for business. The Funds’ investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.

Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.

Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market value.

Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Funds’ net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not “readily available.” As a result, foreign equity securities held by the Funds may be valued at fair market value as determined in good faith by Transamerica Asset Management, Inc.’s (“TAM”) Valuation Committee under the supervision of the Board of Trustees.

Other securities for which quotations are not readily available or whose values have been determined to be unreliable are valued at fair market value as determined in good faith by TAM’s Valuation Committee under the supervision of the Board of Trustees.

75

NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 1. (continued)

The Funds are subject to the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”). FAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”) when market prices are not readily available or reliable. Valuation levels are not necessarily an indication of the risk associated with investing in those securities. The three levels of the hierarchy under FAS 157 are described below:

Level 1 -	Quoted prices in active markets for identical securities.
Level 2 -	Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 -	Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments).

The aggregate value by input level, at April 30, 2009 for the Funds’ investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Funds’ Schedules of Investments.

Cash overdraft: Throughout the year, the Funds may have cash overdraft balances. A fee is incurred on these overdrafts, calculated by multiplying the overdrafts by a rate based on the federal funds rate.

Repurchase agreements: The Funds may enter into repurchase agreements. The Funds, through their custodian, receive delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Funds will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.

Commission recapture: The sub-advisers of certain Funds, to the extent consistent with the best execution and usual commission rate policies and practices, have elected to place security transactions of the Funds with broker/dealers with which Transamerica Funds 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 Funds. In no event will commissions paid by the Funds be used to pay expenses that would otherwise be borne by any other funds within Transamerica Funds, or by any other party.

Recaptured comissions during the period ended April 30, 2009, are included in net realized gains on the Statements of Operations and are summarized as follows:

Fund	Commissions
Transamerica Balanced	$	2
Transamerica Equity		49
Transamerica Growth Opportunities		16
Transamerica Legg Mason Partners All Cap		6
Transamerica Science & Technology		2
Transamerica Small/Mid Cap Value		56
Transamerica Templeton Global		2
Transamerica Value Balanced		—	(a)

(a) Rounds to less than $1.

Securities lending: The Funds may lend securities to qualified financial institutions and brokers. The lending of Fund securities exposes the Funds to risks such as the following: (i) the borrower may fail to return the loaned securities; (ii) the borrower may not be able to provide additional collateral; (iii) the Funds may experience delays in recovery of the loaned securities or delays in access to collateral; or (iv) the Funds may experience losses related to the investment collateral. To minimize certain of these risks, loan counterparties pledge cash collateral equal to at least the market value of the securities loaned. Cash collateral received is invested in the State Street Navigator Securities Lending Trust-Prime Portfolio, a money market mutual fund registered under the 1940 Act. By lending such securities, the Funds attempt to increase their net investment income through the receipt of interest (after rebates and fees). Such income is reflected separately on the Statements of Operations. The value of loaned securities and the liability to return the cash collateral received are reflected on the Schedules of Investments and Statements of Assets and Liabilities. There were no securities on loan at April 30, 2009.

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 Funds are informed of the ex-dividend date. Interest income, including accretion of discounts and amortization of premiums, is recorded on the accrual basis commencing on the settlement date.

Dividend income, related to Real Estate Investment Trusts (“REIT”), is recorded at managements’ 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.

76

NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 1. (continued)

Foreign currency denominated investments: The accounting records of the Funds are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the closing exchange rate each day. Income, expenses, purchases and sales of investment securities denominated in foreign currencies are translated at prevailing exchange rates when accrued or incurred. The Funds combine fluctuations from currency exchange rates and fluctuations in value when computing net realized and unrealized gains or losses from investments.

Net foreign currency gains and losses resulting from changes in exchange rates include: 1) foreign currency fluctuations between trade date and settlement date of investment security transactions; 2) gains and losses on forward foreign currency contracts; and 3) the difference between the receivable amounts of interest and dividends recorded in the accounting records in U.S. dollars and the amounts actually received.

Foreign currency denominated assets may involve risks not typically associated with domestic transactions. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social and economic developments, including those particular to a specific industry, country or region.

Foreign taxes: The Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon the current interpretation of tax rules and regulations that exist in the markets in which the Funds invest.

Forward foreign currency contracts: The Funds are subject to foreign currency exchange rate risk exposure in the normal course of pursuing their investment objectives. The Funds may 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 valued at the contractual forward rate and 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 April 30, 2009 are listed in the Schedules of Investments.

Futures contracts: The Funds 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 Funds may use futures contracts to gain exposure to, or hedge against changes in the value of equities, 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 Funds are required to deposit with the broker either in cash or securities an initial margin in an amount equal to a certain percentage of the contract amount. Subsequent payments (variation margin) are made or received by the Funds 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 Funds. Upon entering into such contracts, the Funds bear the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Funds may not achieve the anticipated benefits of the futures contracts and may realize a loss. With futures, there is minimal counterparty credit risk to the Funds since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

The underlying face amounts of open futures contracts are listed in the Schedules of Investments. The variation margin receivable or payable, as applicable, is included in the Statements of Assets and Liabilities.

At April 30, 2009, the Funds did not hold any futures contracts.

Option contracts: The Funds 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 Funds may enter into option contracts to manage exposure to various market fluctuations. 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. 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. Certain Funds may write call and put options on futures, swaps (“swaptions”), securities or currencies it owns or in which it may invest. When a Fund writes a covered call or put option/swaption, an amount equal to the premium received by a Fund is included in the Fund’s Statement of Assets and Liabilities as an asset and as an equivalent liability. Premiums received from writing options/swaptions which expire 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 future, swap, security or currency transaction to determine the realized gain or loss. Options are marked-to-market daily to reflect the current value of the option/swaption written.

At April 30, 2009, the Funds did not hold any open options or swaptions contracts.

77

NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 1. (continued)

Redemption fees: A short-term trading redemption fee may be assessed on any sales of Fund shares in a fund account during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the period ended April 30, 2009, the Funds received redemption fees which are disclosed in the Funds’ Statements of Changes in Net Assets. Effective March 1, 2009, the Funds no longer charge redemption fees.

Dividend distributions: Distributions to shareholders are recorded on the ex-dividend date and are determined in accordance with federal income tax regulations which may differ from GAAP.

Temporary guarantee program: Transamerica Money Market has enrolled in the U.S. Department of the Treasury’s “Treasury” Temporary Guarantee Program for Money Market Funds (the “Program”) through September 18, 2009. Under the Program, the Treasury guarantees the $1.00 dollar per share value of fund shares outstanding as of September 19, 2008, subject to certain terms and limitations “Covered Shares”.

The guarantee will be triggered if the market-based net asset value of any class percentage of Transamerica Money Market is less than $0.995, unless promptly cured (a “Guarantee Event”). If a Guarantee Event were to occur, Transamerica Money Market would be required to liquidate. Upon liquidation and subject to the availability of funds under the Program, eligible shareholders would be entitled to receive payments equal to $1.00 per Covered Share. The number of Covered Shares held by a shareholder would be equal to the lesser of (1) the number of shares owned by that shareholder on September 19, 2008 or (2) the number of shares owned by that shareholder on the date upon which the Guarantee Event occurs.

The initial period of the Program covered a three month period from September 19, 2008 to December 18, 2008. The program was extended from December 19, 2008 through April 30, 2009, and again from May 1, 2009 through September 18, 2009 (the “Program Extension Periods”). Participation in the Program extension periods required payment of additional fees. Transamerica Money Market paid to the Treasury a fee of 0.01% of its net assets as of September 19, 2008 to participate in the initial three month period of the Program and a fee of 0.015% of its net assets as of September 19, 2008 to participate in each of the Program Extension Periods. These expenses are borne by Transamerica Money Market without regard to any expense limitation agreement in effect.

NOTE 2. RELATED PARTY TRANSACTIONS

TAM is the Fund’s investment adviser. TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) and AUSA Holding Company (23%) (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group.

Transamerica Fund Services, Inc. (“TFS”) is the Funds’ administrator and transfer agent. Transamerica Capital, Inc. (“TCI”) is the Funds’ distributor/principal underwriter. TAM, TFS, and TCI are affiliates of AEGON NV.

Certain officers and trustees of the Funds are also officers and/or directors of TAM, TFS, and TCI.

At the commencement of operations of each of these Funds and classes, TAM, an affiliate, invested in each Fund. As of April 30, 2009, TAM had investments in the Funds as follows:

	Market		% of Fund’s
Fund Name	Value		Net Assets
Transamerica Convertible Securities
Class C	$	290		0.48	%
Transamerica Short-Term Bond
Class A		259		0.04
Class C		257		0.04

78

NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 2. (continued)

The following schedule reflects the percentage of each Fund’s assets owned by affiliated investment companies at April 30, 2009:

	Market		% of Net
Transamerica Convertible Securities	Values		Assets
Transamerica Asset Allocation-Conservative Portfolio	$	156		0.25	%
Transamerica Asset Allocation-Moderate Portfolio		21,937		34.60
Transamerica Asset Allocation-Moderate Growth Portfolio		20,943		33.03
Total	$	43,036		67.88	%

	Market		% of Net
Transamerica Equity	Values		Assets
Transamerica Asset Allocation-Conservative Portfolio	$	22,007		2.48	%
Transamerica Asset Allocation-Growth Portfolio		138,703		15.64
Transamerica Asset Allocation-Moderate Portfolio		82,950		9.36
Transamerica Asset Allocation-Moderate Growth Portfolio		208,497		23.51
Total	$	452,157		50.99	%

	Market		% of Net
Transamerica Flexible Income	Values		Assets
Transamerica Asset Allocation-Conservative Portfolio	$	10,692		8.46	%
Transamerica Asset Allocation-Moderate Portfolio		15,054		11.91
Transamerica Asset Allocation-Moderate Growth Portfolio		18,535		14.66
Transamerica Asset Allocation-Conservative VP		6,366		5.03
Transamerica Asset Allocation-Moderate Growth VP		21,466		16.98
Transamerica Asset Allocation-Moderate VP		23,219		18.37
Total	$	95,332		75.41	%

	Market		% of Net
Transamerica Growth Opportunities	Values		Assets
Transamerica Asset Allocation-Conservative Portfolio	$	5,642		3.57	%
Transamerica Asset Allocation-Growth Portfolio		28,529		18.04
Transamerica Asset Allocation-Moderate Portfolio		13,120		8.30
Transamerica Asset Allocation-Moderate Growth Portfolio		41,801		26.44
Total	$	89,092		56.35	%

	Market		% of Net
Transamerica High Yield Bond	Values		Assets
Transamerica Asset Allocation-Conservative Portfolio	$	47,992		12.03	%
Transamerica Asset Allocation-Moderate Portfolio		75,603		18.94
Transamerica Asset Allocation-Moderate Growth Portfolio		80,383		20.14
Transamerica Asset Allocation-Conservative VP		31,696		7.94
Transamerica Asset Allocation-Moderate Growth VP		51,669		12.95
Transamerica Asset Allocation-Moderate VP		54,017		13.53
Total	$	341,360		85.53	%

	Market		% of Net
Transamerica Money Market	Values		Assets
Transamerica Asset Allocation-Conservative Portfolio	$	5,992		1.94	%
Transamerica Asset Allocation-Growth Portfolio		5,786		1.87
Transamerica Asset Allocation-Moderate Portfolio		5,310		1.72
Transamerica Asset Allocation-Moderate Growth Portfolio		7,481		2.42
Transamerica Multi-Manager Alternative Strategies Portfolio		10,575		3.42
Total	$	35,144		11.37	%

	Market		% of Net
Transamerica Science & Technology	Values		Assets
Transamerica Asset Allocation-Conservative Portfolio	$	2,661		5.07	%
Transamerica Asset Allocation-Growth Portfolio		12,617		24.02
Transamerica Asset Allocation-Moderate Portfolio		7,955		15.14
Transamerica Asset Allocation-Moderate Growth Portfolio		22,190		42.24
Total	$	45,423		86.47	%

	Market		% of Net
Transamerica Short-Term Bond	Values		Assets
Transamerica Asset Allocation-Conservative Portfolio	$	69,387		9.69	%
Transamerica Asset Allocation-Moderate Portfolio		94,054		13.14
Transamerica Asset Allocation-Moderate Growth Portfolio		83,645		11.68
Transamerica Asset Allocation-Conservative VP		84,814		11.84
Transamerica Asset Allocation-Moderate Growth VP		140,000		19.55
Transamerica Asset Allocation-Moderate VP		134,201		18.74
Transamerica International Moderate Growth VP		14,200		1.98
Total	$	620,301		86.62	%

79

NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 2. (continued)

Investment advisory fees: The Funds pay management fees to TAM based on average daily net assets (“ANA”) at the following breakpoints:

Transamerica Balanced
First $250 million	0.80	%
Over $250 million up to $500 million	0.75	%
Over $500 million up to $1.5 billion	0.70	%
Over $1.5 billion	0.625	%
Transamerica Convertible Securities
First $250 million	0.75	%
Over $250 million	0.70	%
Transamerica Equity
First $500 million	0.75	%
Over $500 million up to $2.5 billion	0.70	%
Over $2.5 billion	0.65	%
Transamerica Flexible Income
First $250 million	0.725	%
Over $250 million up to $350 million	0.675	%
Over $350 million	0.625	%
Transamerica Growth Opportunities
First $250 million	0.80	%
Over $250 million up to $500 million	0.75	%
Over $500 million	0.70	%
Transamerica High Yield Bond
First $400 million	0.59	%
Over $400 million up to $750 million	0.575	%
Over $750 million	0.55	%
Transamerica Legg Mason Partners All Cap
First $500 million	0.80	%
Over $500 million	0.675	%
Transamerica Money Market
Average daily net assets	0.40	%
Transamerica Science & Technology
First $500 million	0.78	%
Over $500 million	0.70	%
Transamerica Short-Term Bond
First $250 million	0.65	%
Over $250 million up to $500 million	0.60	%
Over $500 million up to $1 billion	0.575	%
Over $1 billion	0.55	%
Transamerica Small/Mid Cap Value
First $500 million	0.80	%
Over $500 million	0.75	%
Transamerica Templeton Global
First $500 million	0.80	%
Over $500 million	0.70	%
Transamerica Value Balanced
First $500 million	0.75	%
Over $500 million up to $1 billion	0.65	%
Over $1 billion	0.60	%

TAM has contractually agreed to waive its advisory fee and will reimburse the Funds to the extent that operating expenses, excluding 12b-1 fees and other extraordinary expenses, exceed the following stated annual limit:

	Expense
Fund	Limit
Transamerica Balanced		1.45	%
Transamerica Convertible Securities		1.35
Transamerica Equity*		1.17
Transamerica Flexible Income		1.50
Transamerica Growth Opportunities*		1.40
Transamerica High Yield Bond*		1.24
Transamerica Legg Mason Partners All Cap*		1.20
Transamerica Money Market		0.48
Transamerica Science & Technology		1.18
Transamerica Short-Term Bond		0.85
Transamerica Small/Mid Cap Value		1.40
Transamerica Templeton Global		1.20
Transamerica Value Balanced*		1.20

* The Fund may not recapture any fees waived and/or reimbursed prior to March 1, 2008.

If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Funds may be required to pay the adviser a portion or all of the reimbursed class expenses.

There were no amounts recaptured at April 30, 2009.

80

NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 2. (continued)

The following amounts were available for recapture as of April 30, 2009:

	Reimbursement of		Available for
Fund	Class Expenses		Recapture Through
Transamerica Equity
Fiscal Year 2008:				10/31/2011
Class B	$	54
Transamerica Growth Opportunities
Fiscal Year 2008:				10/31/2011
Class A	$	31
Class B		27
Transamerica Legg Mason Partners All Cap
Fiscal Year 2008:				10/31/2011
Class A	$	17
Class B		24
Transamerica Money Market
Fiscal Year 2008:				10/31/2011
Class A	$	276
Class B		71
Class C		62
Class I		2
Fiscal Year 2007:				10/31/2010
Class A	$	321
Class B		88
Class C		45
Class I		18
Fiscal Year 2006:				10/31/2009
Class A	$	290
Class B		81
Class C		47
Transamerica Science & Technology
Fiscal Year 2008:				10/31/2011
Class A	$	11
Class B		12
Class C		3
Fiscal Year 2007:				10/31/2010
Class A	$	13
Class B		14
Class C		4
Fiscal Year 2006:				10/31/2009
Class A	$	12
Class B		19
Class C		4
Transamerica Templeton Global
Fiscal Year 2008:				10/31/2011
Class A	$	66
Class B		82
Class C		14
Fiscal Year 2007:				10/31/2010
Class A	$	94
Class B		131
Class C		35
Fiscal Year 2006:				10/31/2009
Class A	$	97
Class B		184
Class C		53
Transamerica Value Balanced
Fiscal Year 2008:				10/31/2011
Class A	$	3
Class B		11

In addition to the advisory fee waiver for Transamerica Money Market, TAM or any of its affiliates may waive fees or reimburse expenses of one or more classes of Transamerica Money Market in order to avoid a negative yield. At any point in which the Transamerica Money Market, or any classes thereof, achieves a positive yield, the expenses previously waived or reimbursed pursuant to this paragraph may be reimbursed to TAM, to the extent that such reimbursement does not cause classes of Transamerica Money Market to experience a negative yield. Waived expenses related to the maintenance of the yield are included in the Statement of Operations, within the class expense reimbursed (recaptured). Amounts waived for Class A, B, and C, as of April 30, 2009 were $53, $103, and $155, respectively.

Distribution and service fees: The Funds have 12b-1 distribution plans under the 1940 Act pursuant to which an annual fee, based on ANA, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Funds. The Funds are authorized under the 12b-1 plans to pay fees on each class up to the following limits: 0.35% for Class A, 1.00% for Class B, and 1.00% for Class C. 12b-1 fees are not applicable for Class I and Class T.

81

NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 2. (continued)

Underwriter commissions relate to front-end sales charges imposed for Class A shares and contingent deferred sales charges from Class B, Class C, and certain Class A share redemptions. For the period ended April 30, 2009, the underwriter commissions were as follows:

Transamerica Balanced
Received by Underwriter	$	21
Retained by Underwriter		3
Contingent Deferred Sales Charge		11
Transamerica Convertible Securities
Received by Underwriter	$	20
Retained by Underwriter		4
Contingent Deferred Sales Charge		9
Transamerica Equity
Received by Underwriter	$	148
Retained by Underwriter		22
Contingent Deferred Sales Charge		34
Transamerica Flexible Income
Received by Underwriter	$	22
Retained by Underwriter		4
Contingent Deferred Sales Charge		4
Transamerica Growth Opportunities
Received by Underwriter	$	23
Retained by Underwriter		3
Contingent Deferred Sales Charge		9
Transamerica High Yield Bond
Received by Underwriter	$	89
Retained by Underwriter		16
Contingent Deferred Sales Charge		5
Transamerica Legg Mason Partners All Cap
Received by Underwriter	$	15
Retained by Underwriter		2
Contingent Deferred Sales Charge		9
Transamerica Money Market
Received by Underwriter	$	—
Retained by Underwriter		—
Contingent Deferred Sales Charge		121
Transamerica Science & Technology
Received by Underwriter	$	3
Retained by Underwriter		—	(a)
Contingent Deferred Sales Charge		2
Transamerica Short-Term Bond
Received by Underwriter	$	197
Retained by Underwriter		41
Contingent Deferred Sales Charge		4
Transamerica Small/Mid Cap Value
Received by Underwriter	$	73
Retained by Underwriter		11
Contingent Deferred Sales Charge		72
Transamerica Templeton Global
Received by Underwriter	$	20
Retained by Underwriter		3
Contingent Deferred Sales Charge		6
Transamerica Value Balanced
Received by Underwriter	$	6
Retained by Underwriter		1
Contingent Deferred Sales Charge		4

(a) Rounds to less than $1.

Administrative services: The Funds have entered into agreements with TFS for financial and legal fund administration services. The Funds pay TFS an annual fee of 0.02% of ANA. The Legal fees on the Statements of Operations are for fees paid to external legal counsel.

Transfer agent fees: The Funds pay TFS an annual per-account charge for each open and closed account. The Funds paid TFS the following amounts for the period ended April 30, 2009:

Fund	Fees
Transamerica Balanced	$	181
Transamerica Convertible Securities		21
Transamerica Equity		983
Transamerica Flexible Income		41
Transamerica Growth Opportunities		306
Transamerica High Yield Bond		46
Transamerica Legg Mason Partners All Cap		177
Transamerica Money Market		228
Transamerica Science & Technology		27
Transamerica Short-Term Bond		9
Transamerica Small/Mid Cap Value		448
Transamerica Templeton Global		318
Transamerica Value Balanced		61

Brokerage commissions: There were no brokerage commissions incurred on security transactions placed with affiliates of the advisers or sub-advisers for the period ended April 30, 2009.

Deferred compensation plan: Each eligible Independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan (the “Plan”) maintained by Transamerica Funds. Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in Class A shares of any series of Transamerica Funds, including the Funds, or investment options under Transamerica Partners Institutional Funds Group or Transamerica Institutional Asset Allocation Funds, or funds of Transamerica Investors, Inc. The right of a participant to receive a distribution from the Plan of the deferred fees is a claim against the general assets of all series of Transamerica Funds.

82

NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 2. (continued)

Retirement plan: Under a prior retirement plan (the “Emeritus Plan”) available to the Independent Trustees, each Independent Trustee was deemed to have been elected to serve as Trustee Emeritus of Transamerica Funds upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.

Such amounts were to be accrued by Transamerica Funds on a pro rata basis allocable to each Transamerica Fund based on the relative assets of the Fund. If retainers increased in the future, past accruals (and credits) would be adjusted upward so that 50% of the Trustee’s current retainer was accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred became payable to a Trustee Emeritus (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation would be paid on a quarterly basis during the time period that the Trustee Emeritus was allowed to serve as such.

At April 30, 2009, the Funds’ liabilities related to the Emeritus Plan were as follows:

Fund	Emeritus Fees
Transamerica Balanced	$	1
Transamerica Convertible Securities		1
Transamerica Equity		6
Transamerica Flexible Income		1
Transamerica Growth Opportunities		1
Transamerica High Yield Bond		1
Transamerica Legg Mason Partners All Cap		1
Transamerica Money Market		—	(a)
Transamerica Science & Technology		—	(a)
Transamerica Short-Term Bond		1
Transamerica Small/Mid Cap Value		2
Transamerica Templeton Global		1
Transamerica Value Balanced		—	(a)

(a) Rounds to less than $1.

Amounts deferred and accrued under the Emeritus Plan are claims against the general assets of Transamerica Funds.

The Emeritus Plan was terminated effective October 30, 2007. Upon the termination, the Funds continue to pay any remaining benefits in accordance with the Plan, but no further compensation is accrued under the Plan.

NOTE 3. INVESTMENT TRANSACTIONS

The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the period ended April 30, 2009 were as follows:

					Proceeds from maturities and sales of
	Purchases of securities:				securities:
Fund	Long-term		U.S. Government		Long-term		U.S. Government
Transamerica Balanced	$	43,300	$	11,816	$	47,239	$	17,064
Transamerica Convertible Securities		71,316		—		117,254		—
Transamerica Equity		193,440		—		187,309		—
Transamerica Flexible Income		86,612		32,961		110,268		43,963
Transamerica Growth Opportunities		45,812		—		49,696		—
Transamerica High Yield Bond		69,483		—		156,244		—
Transamerica Legg Mason Partners All Cap		9,654		—		20,289		—
Transamerica Science & Technology		17,809		—		15,994		—
Transamerica Short-Term Bond		397,745		5,181		279,364		6,318
Transamerica Small/Mid Cap Value		155,296		—		323,347		—
Transamerica Templeton Global		11,826		—		14,589		—
Transamerica Value Balanced		10,893		3,778		12,745		4,402

NOTE 4. FEDERAL INCOME TAX MATTERS

The Funds have not made any provisions for federal income or excise taxes due to their policy to distribute all of their taxable income and capital gains to their shareholders and otherwise qualify as regulated investment companies under Subchapter M of the Internal Revenue Code. Management has evaluated the Funds’ tax provisions taken for all open tax years and has concluded that no provision for income tax is required in the Funds’ financial statements. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, structured notes, foreign bonds, swaps, net operating losses and distribution reclasses.

83

NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 5. ACCOUNTING PRONOUNCEMENT

In March 2008, the Financial Accounting Standards Board issued its new Standard No. 161, “Disclosure About Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requires enhanced disclosures about a Fund’s derivative and hedging activities. Management is currently evaluating the impact the adoption of FAS 161 will have on the Funds’ financial statement disclosures.

NOTE 6. SUBSEQUENT EVENT

Effective May 1, 2009 for Transamerica Short Term Bond, TAM has contractually agreed, through May 1, 2010, to waive 0.10% of its 0.62% advisory fee. As the result of a contractual waiver, 0.10% of the 0.35% 12b-1 fee on Class A shares will be waived through May 1, 2010. In addition, contractual arrangements have been made with TAM through March 1, 2010, to waive fees and/or reimburse fund expenses to the extent such expenses exceed 0.85%, excluding 12b-1 fees and certain extraordinary expenses. If the total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed expenses.

84

TRANSAMERICA BALANCED

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Balanced (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (“TIM” or, the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Trustees noted that the Fund’s performance was strong compared to its peer universe for the past 1-year period, above the median for the past 3-year period, and in line with the median for the past 5-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees and total expenses were above the medians for its peer group and peer universe. and they also noted management’s statements about the challenges reflected in the peer group. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits (such as soft dollars) to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

85

TRANSAMERICA CONVERTIBLE SECURITIES

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Convertible Securities (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Trustees noted that the Fund’s performance was strong compared to its peer universe for the past 1-, 3- and 5-year periods. The Trustees considered that the Fund’s risk/reward profile is well above median, indicating attractive returns commensurate with the risk taken. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees and total expenses were above the medians for its peer group and peer universe. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that despite a flat sub-advisory fee schedule TAM offers breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

86

TRANSAMERICA EQUITY

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Equity (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Trustees noted that the Fund’s performance was in line with the median for its peer universe for the past 1-year period, strong compared to its peer universe for the past 3-year period and above the median for the past 5-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees were in line with the medians for its peer group and peer universe and that the total expenses of the Fund were above the medians for its peer group and peer universe. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits (such as soft dollars) to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

87

TRANSAMERICA FLEXIBLE INCOME

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Flexible Income (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (“TIM” or, the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Board noted that the Fund’s performance was below the median for its peer universe for the past 1-, 3- and 5-year periods. The Trustees recognized that the longer-term underperformance can be attributed to the Fund’s prior sub-adviser, noting that TIM took over the management of the Fund on March 1, 2004. The Trustees considered that the Fund’s recent underperformance was driven in part by overweighting in corporate and high-yield bond investments, but they noted that they would be monitoring performance closely and expected to see improvement. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s proposed investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees were above the medians for its peer group and peer universe and that the total expenses of the Fund above the medians for its peer group and peer universe. The Trustees further noted that TAM voluntarily lowered its fees in 2007 and again for 2008. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

88

TRANSAMERICA GROWTH OPPORTUNITIES

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Growth Opportunities (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (“TIM” or, the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Trustees noted that the Fund’s performance was above the median for its peer universe for the past 1- and 3-year periods and slightly above the median for the past 5-year period. The Trustees recognized that the longer-term underperformance can be partially attributed to the Fund’s prior sub-adviser, noting that TIM took over the management of the Fund in 2005. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees were below the median for its peer group and in line with the median for its peer universe and that the total expenses of the Fund were above the medians for its peer group and peer universe. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits (such as soft dollars) to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which currently is resulting in TAM waiving fees for certain share classes for the benefit of shareholders.

89

TRANSAMERICA HIGH YIELD BOND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica High Yield Bond (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and AEGON USA Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Board noted that the Fund’s performance was in line with the median for its peer universe for the past 1- and 3-year periods and below the median for the past 5-year period. The Board noted that prior to March 2005, the Fund’s mandate was limited to 75% in high-yield bonds and relative to its peer funds, this higher quality structural limitation hurt the Fund as high-yield bonds outperformed investment-grade bonds over the past several years. The Board noted that they would be monitoring performance closely. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees were in line with the median for its peer group and slightly below the median for its peer universe and that the total expenses of the Fund were above the medians for its peer group and peer universe. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

90

TRANSAMERICA LEGG MASON PARTNERS ALL CAP

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Legg Mason Partners All Cap (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and ClearBridge Advisors, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Board noted that the Fund’s performance was below the median for its peer universe for the past 1- and 3-year periods and slightly below the median for the past 5-year period, and that they would be monitoring performance closely and expected improvement. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees is in line with the median for its peer group and above the median for its peer universe and that the total expenses of the Fund were above the medians for its peer group and peer universe. The Board noted further that sub-advisory fees were renegotiated for 2008. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits (such as soft dollars) to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

91

TRANSAMERICA MONEY MARKET

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Money Market (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (“TIM” or, the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Trustees noted that the Fund’s performance was in line with the median for its peer universe for the past 1-, 3-, and 5-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees were below the median for its peer group and in line with the median for its peer universe and that the total expenses of the Fund were below the medians for its peer group and peer universe. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, the nature of the Fund and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board considered the specific reasons for the absence of breakpoints, and concluded that the absence of breakpoints was acceptable under the circumstances. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which currently is resulting in TAM waiving a substantial amount of fees for the benefit of shareholders.

92

TRANSAMERICA SCIENCE & TECHNOLOGY

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Science & Technology (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (“TIM” or, the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Trustees noted that the Fund’s performance was strong compared to its peer universe for the past 1-year period, slightly above the median for the past 3-year period, and in line with the median for the past 5-year period. The Board also noted that the performance of the Fund prior to August, 2006 could be attributed in part to the Fund’s prior sub-adviser. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees and total expenses were below the medians for its peer group and peer universe. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits (such as soft dollars) to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which currently is resulting in TAM waiving a substantial amount of fees for the benefit of shareholders.

93

TRANSAMERICA SHORT-TERM BOND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Short-Term Bond (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (“TIM” or, the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for trailing periods ended December 31, 2007, noting that the Fund’s inception date was November 8, 2004. The Trustees noted that the Fund’s performance was below the median for its peer universe for the past 1- year period and in line with the median for the past 3-year period. The Board noted that they would be monitoring performance closely. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees were above the medians for its peer group and peer universe but that the total expenses of the Fund were below the medians for its peer group and peer universe. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

94

TRANSAMERICA SMALL/MID CAP VALUE

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Small/Mid Cap Value (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (“TIM” or, the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Board noted that the Fund’s performance was strong compared to its peer universe for the past 1-, 3- and 5-year periods. The Board also noted that the Fund’s 5-year performance could not be attributed completely to the Sub-Adviser’s current management team, which assumed management of the Fund in March 2004. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees were below the medians for its peer group and peer universe and that the total expenses of the Fund were in line with the medians for its peer group and peer universe. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits (such as soft dollars) to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

95

TRANSAMERICA TEMPLETON GLOBAL

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Templeton Global (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Templeton Investment Counsel, LLC and Transamerica Investment Management, LLC (“TIM”) (collectively the “Sub-Advisers”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Advisers such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Advisers. The Trustees also carefully considered information they had previously received from TAM and the Sub-Advisers as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Advisers to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Advisers are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Advisers for this series and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Advisers, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Advisers. The Trustees determined that TAM and the Sub-Advisers can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Trustees noted that the Fund’s performance was in line with the median for its peer universe for the past 1-year period and below the median for its peer universe for the past 3- and 5-year periods. The Trustees recognized that the longer-term underperformance can partly be attributed to the Fund’s prior sub-advisers of the domestic portion of the Fund, noting that TIM took over the management of the domestic portion of the Fund in August 2006. The Board noted they would be monitoring performance closely. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Advisers, the Board concluded that TAM and the Sub-Advisers are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees were below the median for its peer group and slightly above median for the peer universe and that the total expenses of the Fund were slightly above the median for its peer group and above the median for its peer universe. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Advisers. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Advisers offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Advisers, in the future.

Benefits (such as soft dollars) to TAM, its affiliates, or the Sub-Advisers from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Advisers from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Advisers. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which currently is resulting in TAM waiving fees for the benefit of shareholders.

96

TRANSAMERICA VALUE BALANCED

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

(unaudited)

At a meeting of the Board of Trustees of Transamerica Funds held on May 15th, 2008, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Value Balanced (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (“TIM” or, the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2009. In reaching their decision, the Trustees requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2007. The Board noted that the Fund’s performance was below the median for its peer universe for the past 1-year period and in line with the median for the past 3- and 5-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Trustees noted that the Fund’s contractual management fees were above the medians for its peer group and peer universe and that the total expenses of the Fund were above the medians for its peer group and peer universe. Based on their review, the Trustees determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits (such as soft dollars) to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which currently is resulting in TAM waiving fees for certain share classes for the benefit of shareholders.

97

PROXY VOTING POLICIES AND PROCEDURES AND QUARTERLY PORTFOLIO HOLDINGS
(unaudited)

A description of the Transamerica Funds’ proxy voting policies and procedures is available in the Statements of Additional Information of the Funds, available without charge upon request by calling 1-888-233-4339 (toll free) or on the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

In addition, the Funds are required to file Form N-PX, with their complete proxy voting records for the 12 months ended June 30th, no later than August 31st of each year. The Form is available without charge: (1) from the Funds, upon request by calling 1-888-233-4339; and (2) on the SEC’s website at http://www.sec.gov.

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarter of each fiscal year on Form N-Q, which is available on the SEC’s website at http://www.sec.gov. The Funds’ Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

You may also visit the Trust’s website at www.transamericafunds.com for this and other information about the Funds and the Trust.

Important Notice Regarding Delivery of Shareholder Documents

Every year we send shareholders informative materials such as the Transamerica Funds Annual Report, the Transamerica Funds Prospectus, and other required documents that keep you informed regarding your Funds. Transamerica Funds will only send one piece per mailing address, a method that saves your Funds money by reducing mailing and printing costs. We will continue to do this unless you tell us not to. To elect to receive individual mailings, simply call a Transamerica Customer Service Representative toll free at 1-888-233-4339, 8 a.m. to 7 p.m. Eastern Time, Monday—Friday. Your request will take effect within 30 days.

98

P.O. Box 9012
Clearwater, FL 33758-9012

Customer Service 1-888-233-4339
P.O. Box 9012 • Clearwater, FL 33758-9012
Distributor: Transamerica Capital, Inc.

EX-99.17.F

TRANSAMERICA ASSET MANAGEMENT GROUP
Transamerica Funds
Transamerica Series Trust
Transamerica Investors, Inc.
Transamerica Partners Funds Group
Transamerica Partners Funds Group II (each, a “fund”)

Supplement dated August 4, 2009 to the Prospectuses and Statements of Additional Information

     The following supplements the Prospectus and Statement of Additional Information as applicable for each fund listed below on Schedules I, II and III:

     Rationalization. The fund’s Board has approved a number of initiatives designed to achieve a more cohesive, focused and streamlined fund complex, and has authorized seeking shareholder approval for those initiatives where shareholder approval is required.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed as a “Target Fund” on Schedule I to this Supplement:

     Reorganization. The fund’s Board has approved a reorganization pursuant to which the fund’s assets would be acquired, and its liabilities would be assumed, by the fund (the “Destination Fund”) listed opposite the fund on Schedule I in exchange for shares of the Destination Fund. The fund would then be liquidated, and shares of the Destination Fund would be distributed to fund shareholders.

     Under the reorganization, fund shareholders would receive shares of the Destination Fund with the same aggregate net asset value as their shares of the fund. It is anticipated that no gain or loss for Federal income tax purposes would be recognized by fund shareholders as a result of the reorganization.

     The reorganization is subject to the satisfaction of certain conditions, including approval by fund shareholders (if so indicated on Schedule I). Materials describing the reorganization are expected to be mailed later in 2009 (early 2010 for Transamerica Series Trust funds). If the closing conditions are satisfied, the reorganization is expected to occur during the fourth quarter of 2009 (second quarter of 2010 for Transamerica Series Trust funds). Prior to the reorganization, shareholders can continue to purchase, redeem and exchange shares subject to the limitations described in the fund’s Prospectus.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed on Schedule II to this Supplement:

     Liquidation. The fund’s Board has approved the termination and liquidation of the fund. Effective September 1, 2009, the fund will no longer be accepting purchase orders for its shares. The fund will be liquidated on or about September 30, 2009.

     In order to achieve an orderly liquidation, a portion of the fund’s assets may be converted into cash and/or money market securities prior to September 30, 2009. Should a fund convert its assets to cash and/or money market securities, the fund would no longer be pursuing its stated investment objective.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed on Schedule III to this Supplement:

     New subadviser. The fund’s Board has approved a new subadviser for the fund, as indicated for the fund on Schedule III. In each case the new subadviser is an affiliate of Transamerica. Under the Investment Company Act of 1940, shareholder approval of the agreement with the new subadviser must be obtained, and the Board has authorized seeking such approval. Proxy materials describing the new subadviser are expected to be mailed later in 2009. If shareholder approval is obtained, the new agreement could take effect in the fourth quarter of 2009.

* * *

	Date of Prospectus
Fund	and Statement of Additional Information
Transamerica Funds	Prospectus — March 1, 2009
Transamerica American Century Large Company Value	Statement of Additional Information — July 1, 2009
Transamerica Balanced
Transamerica Convertible Securities
Transamerica Diversified Equity
Transamerica Equity
Transamerica Evergreen Health Care
Transamerica Evergreen International Small Cap
Transamerica Flexible Income
Transamerica Growth Opportunities
Transamerica High Yield Bond
Transamerica Legg Mason Partners All Cap
Transamerica Marsico Growth
Transamerica Marsico International Growth
Transamerica Money Market
Transamerica Science & Technology
Transamerica Templeton Global
Transamerica Value Balanced
Transamerica Series Trust	May 1, 2009
Transamerica American Century Large Company Value VP
Transamerica Balanced VP
Transamerica BlackRock Large Cap Value VP
Transamerica Diversified Equity VP
Transamerica Jennison Growth VP
Transamerica Legg Mason Partners All Cap VP
Transamerica Marsico Growth VP
Transamerica Munder Net 50 VP
Transamerica Science & Technology VP
Transamerica T. Rowe Price Equity Income VP
Transamerica T. Rowe Price Growth Stock VP
Transamerica Templeton Global VP
Transamerica Value Balanced VP
Transamerica Investors, Inc.	May 1, 2009
Transamerica Premier Balanced Fund
Transamerica Premier Cash Reserve Fund
Transamerica Premier Diversified Equity Fund
Transamerica Premier Equity Fund
Transamerica Premier Focus Fund
Transamerica Premier Growth Opportunities Fund
Transamerica Premier High Yield Bond Fund
Transamerica Premier Institutional Bond Fund
Transamerica Premier Institutional Diversified Equity Fund
Transamerica Premier Institutional Equity Fund
Transamerica Premier Institutional Small Cap Value Fund

	Date of Prospectus
Fund	and Statement of Additional Information
Transamerica Partners Funds Group	May 1, 2009
Transamerica Partners Core Bond
Transamerica Partners Growth
Transamerica Partners Large Growth
Transamerica Partners Large Value
Transamerica Partners Total Return Bond
Transamerica Partners Value
Transamerica Partners Funds Group II	May 1, 2009
Transamerica Partners Institutional Core Bond
Transamerica Partners Institutional Growth
Transamerica Partners Institutional Large Growth
Transamerica Partners Institutional Large Value
Transamerica Partners Institutional Total Return Bond
Transamerica Partners Institutional Value

Schedule I

Target Fund(s)	Destination Fund
Transamerica Premier Balanced Fund	Transamerica Balanced
Transamerica Value Balanced
Transamerica Premier Cash Reserve Fund*	Transamerica Money Market
Transamerica Premier Diversified Equity Fund	Transamerica Diversified Equity
Transamerica Premier Institutional Diversified Equity Fund
Transamerica Science & Technology
Transamerica Templeton Global
Transamerica Premier Equity Fund	Transamerica Equity
Transamerica Premier Institutional Equity Fund
Transamerica Premier Focus Fund	Transamerica Legg Mason Partners All Cap
Transamerica Premier Growth Opportunities Fund	Transamerica Growth Opportunities
Transamerica Premier High Yield Bond Fund*	Transamerica High Yield Bond
Transamerica Convertible Securities	Transamerica Flexible Income
Transamerica Partners Value	Transamerica Partners Large Value
Transamerica Partners Growth	Transamerica Partners Large Growth
Transamerica Partners Total Return Bond	Transamerica Partners Core Bond
Transamerica Partners Institutional Value	Transamerica Partners Institutional Large Value
Transamerica Partners Institutional Growth	Transamerica Partners Institutional Large Growth
Transamerica Partners Total Institutional Return Bond	Transamerica Partners Institutional Core Bond

* Requires shareholder approval.

Target Fund(s)	Destination Fund
Transamerica Templeton Global VP	Transamerica Diversified Equity VP
Transamerica Science & Technology VP
Transamerica Munder Net 50 VP*
Transamerica Value Balanced VP	Transamerica Balanced VP
Transamerica American Century Large Company Value VP*	Transamerica BlackRock Large Cap Value VP
Transamerica T. Rowe Price Equity Income VP*
Transamerica Marsico Growth VP	Transamerica Jennison Growth VP
Transamerica T. Rowe Price Growth Stock VP

* Requires shareholder approval.

Schedule II

Fund

Transamerica American Century Large Company Value

Transamerica Evergreen Health Care

Transamerica Evergreen International Small Cap

Transamerica Marsico Growth

Transamerica Marsico International Growth

Transamerica Premier Institutional Bond Fund

Transamerica Premier Institutional Small Cap Value Fund

Schedule III

Fund	Proposed New Subadviser
Transamerica Legg Mason Partners All Cap	Transamerica Investment Management, LLC
Transamerica Legg Mason Partners All Cap VP	Transamerica Investment Management, LLC

Investors Should Retain this Supplement for Future Reference

PROSPECTUS

INVESTOR CLASS SHARES

MAY 1, 2009

Transamerica Premier Funds Prospectus – Investor Class Shares

TRANSAMERICA PREMIER FUNDS – INVESTOR CLASS SHARES

Prospectus: May 1, 2009

Equity Funds

Transamerica Premier Focus Fund

Transamerica Premier Equity Fund

Transamerica Premier Growth Opportunities Fund

Transamerica Premier Diversified Equity Fund

Combined Equity & Fixed Income Fund

Transamerica Premier Balanced Fund

Fixed Income Funds

Transamerica Premier High Yield Bond Fund

Transamerica Premier Cash Reserve Fund

Neither the U.S. Securities and Exchange Commission (SEC) nor any state securities commission has approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.

Transamerica Premier Funds Prospectus – Investor Class Shares

TABLE OF CONTENTS

SECTION A — FUND DESCRIPTIONS	4
§  EQUITY FUNDS	4
Transamerica Premier Focus Fund	4
Transamerica Premier Equity Fund	9
Transamerica Premier Growth Opportunities Fund	14
Transamerica Premier Diversified Equity Fund	19
§  COMBINED EQUITY & FIXED INCOME FUND	24
Transamerica Premier Balanced Fund	24
§  FIXED INCOME FUNDS	31
Transamerica Premier High Yield Bond Fund	31
Transamerica Premier Cash Reserve Fund	36
SECTION B — SHAREHOLDER INFORMATION	40
§  INVESTMENT ADVISER	40
Management Fees	40
Management Fees Paid in 2008	40
§  SUB-ADVISER	40
Sub-Advisory Fees	41
§  TO CONTACT TRANSAMERICA PREMIER FUNDS	41
§  OPENING AN ACCOUNT	41
Minimum Investment	41
By Mail	42
Through an Authorized Dealer	42
Buying Shares	42
By Check	42
By Automatic Investment Plan	42
By Telephone	42
Through an Authorized Dealer	42
By the Internet	42
By Payroll Deduction	42
By Wire Transfer	42
Other Information	42
§  SELLING SHARES	43
Direct Deposit — ACH	43
Direct Deposit — Wire	43
Check to Address of Record	43
Check to Another Party/Address	43
Systematic Withdrawal Plan (by Direct Deposit ACH or Check)	43
Through an Authorized Dealer	43

1

Transamerica Premier Funds Prospectus – Investor Class Shares

§  INVOLUNTARY REDEMPTIONS	44
§  EXCHANGING SHARES	44
§  FEATURES AND POLICIES	44
Market Timing/Excessive Trading	44
Checkwriting Service (available for Shareholders of Transamerica Premier Cash Reserve Fund only)	45
Customer Service	45
Uncashed Checks Issued on Your Account	45
Minimum Dividend Check Amounts	45
Dividend Payment Schedules	46
Minimum Account Balance	46
Telephone Transactions	46
Retirement and ESA State Street Account Maintenance Fees	46
Professional Fees	46
Signature Guarantee	46
Employer-Sponsored Accounts	47
E-mail Communications	47
Statements and Reports	47
§  PRICING OF SHARES	47
How Share Price is Determined	47
When Share Price is Determined	47
How NAV is Calculated	47
§  DISTRIBUTION OF SHARES	48
Distribution Plans	48
§  UNDERWRITING AGREEMENT	49
§  DISTRIBUTION AND TAXES	49
Taxes on Distributions in General	49
Taxes on the Sale or Exchange of Shares	49
Withholding Taxes	50
Non-Resident Alien Withholding	50
Other Tax Information	50
§  INVESTMENT POLICY CHANGES	50
§  SUMMARY OF BOND RATINGS	50
§  FINANCIAL HIGHLIGHTS	51
§  APPENDIX A — MORE ON STRATEGIES AND RISKS	A-1
§  ADDITIONAL INFORMATION AND ASSISTANCE	Back Cover

2

Transamerica Premier Funds Prospectus – Investor Class Shares

Listed in this prospectus are the investment objectives and principal investment strategies for Transamerica Premier Focus Fund, Transamerica Premier Equity Fund, Transamerica Premier Growth Opportunities Fund, Transamerica Premier Diversified Equity Fund, Transamerica Premier Balanced Fund, Transamerica Premier High Yield Bond Fund and Transamerica Premier Cash Reserve Fund (each a “Fund,” and collectively, the “Funds”). The Funds offer Investor Class shares in this prospectus. The Funds are advised by Transamerica Asset Management, Inc. (“TAM” or the “Investment Adviser”) and sub-advised by Transamerica Investment Management, LLC (“TIM” or the “Sub-Adviser”). The Funds’ investment objectives and strategies are non-fundamental which means that the Board of Directors may change them without shareholder approval.

As with any investment, there can be no guarantee that the Funds will achieve their investment objectives. An investment in the Funds is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency; loss of money is a risk of investing in the Funds.

Please read this prospectus carefully before you invest or send money. It has been written to provide information and assist you in making an informed decision. If you would like additional information, please request a copy of the Statement of Additional Information (“SAI”) (see back cover).

In addition, we suggest you contact your financial professional or a Transamerica Premier Customer Services Representative, who will assist you.

3

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Focus Fund

Objective

The Fund seeks to maximize long-term growth.

Principal Strategies and Policies

The Fund invests primarily in domestic equity securities that, in TIM’s opinion, are trading at a material discount to intrinsic value. TIM assesses intrinsic value primarily through discounted cash flow analysis, though acquisition and comparable company valuation analyses may be used to a lesser extent. The Fund generally invests in domestic equity securities of any size. The Fund may also invest up to 10% of its assets in short sale positions. The Fund is non-diversified.

TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual companies. The portfolio is constructed one company at a time. Each company passes through a research process and stands on its own merits as a viable investment in TIM’s opinion.

TIM’s equity management team selects U.S. companies showing:

•   strong potential for shareholder value creation

•   high barriers to competition

•   solid free cash flow generating ability

•   excellent capital allocation discipline

•   experienced management aligned with shareholder interests

TIM seeks out dominant business franchises where the long-term, value-creating potential has not fully been recognized by the market.

Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options and swaps, and also in foreign securities.

In the event TIM is unable to identify sufficient investments that meet the Fund’s criteria, the Fund may maintain a balance in cash and cash equivalents that may range up to 40% of total assets. Since the Fund may hold as much as 40% in cash or cash equivalents from time to time, it may not perform as favorably as a fund which is invested more fully.

The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

A “non-diversified” portfolio has the ability to take larger positions in a smaller number of issuers. To the extent a portfolio invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities. However, to meet federal tax requirements, at the close of each quarter the portfolio generally may not have more than 25% of its total assets invested in any one issuer, with the exception of securities of the U.S. government and its agencies, and, with respect to 50% of its total assets, may not have more than 5% of its total assets invested in any one issuer with the exception of securities of the U.S. government and its agencies.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. The Fund is subject to the following principal risks, as well as other risks described in Appendix A:

Market

The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

Stocks

Stocks may be volatile — their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down.

4

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Focus Fund

Value Investing

The value approach to investing carries the risk that the market will not recognize a security’s intrinsic value for a long time or that a stock judged to be undervalued may actually be appropriately priced. The Fund may underperform other equity funds that use different investing styles. The Fund may also underperform other equity funds using the value style.

Small- or Medium-Sized Companies

Investing in small and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

Short Sales

A short sale may be effected by selling a security that the Fund does not own. In order to deliver the security to the purchaser, the Fund borrows the security, typically from a broker-dealer or an institutional investor. The Fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the Fund would incur a loss; conversely, if the price declines, the Fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The Fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the Fund held only long positions. The Fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.

A short sale may also be effected “against the box” if, at all times when the short position is open, the Fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the Fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the Fund would forego the potential realization of the increased value of the shares sold short.

Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Sub-Adviser may not make use of derivatives for a variety of reasons.

Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

•   different accounting and reporting practices

•   less information available to the public

•   less (or different) regulation of securities markets

•   more complex business negotiations

•   less liquidity

•   more fluctuations in prices

•   delays in settling foreign securities transactions

•   higher costs for holding shares (custodial fees)

•   higher transaction costs

•   vulnerability to seizure and taxes

•   political or financial instability and small markets

•   different market trading days

5

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Focus Fund

Currency

When the Fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund.

Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

•   market risk: fluctuations in market value

•   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

•   prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

•   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

•   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s Sub-Adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Non-Diversification

As a non-diversified investment company, the Fund can invest a larger percentage of assets in a smaller number of individual companies than a diversified investment company. As a result, any single adverse event affecting a company within the portfolio could negatively impact the value of the Fund’s performance more than it would for a diversified investment company.

Focused Investing

To the extent the Fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

Please also see the Fund’s website at www.transamericafunds.com (select Transamerica Premier Funds) for more information about the Fund.

You may lose money if you invest in this Fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the Fund’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund’s Statement of Additional Information. The Fund publishes its holdings on its website at www.transamericafunds.com (select Transamerica Premier Funds) 25 days after the end of each month. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the Fund by showing you how the Fund’s performance has varied from year to year and how the Fund’s average annual total returns for different periods compare to the returns of a broad measure of market performance. The Fund’s benchmark, the Standard & Poor’s 500 Stock Index (“S&P 500 Index”), is a widely recognized, unmanaged index of market performance. Absent any limitation of the Fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

6

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Focus Fund

Year-by-Year Total Return as of 12/31 (%)

 Best calendar quarter: 38.39% for quarter ended 12/31/1999

­ ­

 Worst calendar quarter: (27.55%) for quarter ended 12/31/2000

Average Annual Total Returns (as of 12/31/08)*
	1 Year			5 Years			10 Years
Return Before Taxes		(41.19%	)		0.06%			(0.41%	)
Return After Taxes on Distributions**		(41.81%	)		(0.16%	)		(1.29%	)
Return After Taxes on Distributions and Sale of Fund Shares**		(26.49%	)		(0.03%	)		(0.36%	)
S&P 500 Index†		(37.00%	)		(2.19%	)		(1.38%	)

 *Actual returns may depend on the investor’s individual tax situation and may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan or an individual retirement account.

 **The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

 †The S&P 500 Index consists of 500 widely held, publicly traded common stocks. The S&P 500 Index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Fees and Expenses

The table below provides a breakdown of the expenses you may pay if you invest in shares of the Fund. This table sets forth the estimated fees and expenses you may pay if you invest in the Fund’s shares, and, unless otherwise indicated, reflects expenses incurred by the Fund during its fiscal year ended December 31, 2008. Actual expenses may vary significantly.

Shareholder Fees

(fees paid directly from your investment)

Maximum Sales Charge (load) Imposed on Purchases (as a % of offering price)	None
Maximum Deferred Sales Charge (load) (as a % of offering price)	None
Redemption Fee (as a % of amount redeemed)	None

Annual Fund Operating Expenses
(expenses that are deducted from fund assets)

Management Fees1	0.85%
Distribution and Service (12b-1) Fees	0.25%
Other Expenses2	0.48%
Total Annual Fund Operating Expenses	1.58%
Expense Reduction3	0.18%
Net Operating Expenses	1.40%

 ¹Management fees have been restated to reflect current contractual fees.

 ²Other expenses have been restated to reflect expenses the Fund expects to incur during its current fiscal year.

 ³Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.40%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.40% (other than interest, taxes, brokerage commissions and extraordinary expenses).

A $25 fee is assessed every year against an account that has been open for over 2 years whose balance is less than $1,000.

Example

The table below is to help you compare the cost of investing in this Fund with the cost of investing in other mutual funds.

The example assumes that you make a one-time investment of $10,000 in the Fund, reinvested all distributions and dividends without a sales charge, and held your shares for the time periods shown and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance) and that the Fund’s operating expenses remain the same. The example assumes no fees for IRA accounts. Costs are the same whether you redeem at the end of any period or not.

Investment Period
1 Year		3 Years		5 Years		10 Years
$	143	$	481	$	843	$	1,863

The actual expenses may be more or less than those shown.

7

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Focus Fund

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716

For additional information about TAM, see the section entitled “Shareholder Information — Investment Adviser” of this prospectus.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, CA 90025

For additional information about TIM, see the section entitled “Shareholder Information — Sub-Adviser” of this prospectus.

Portfolio Managers

Edward S. Han

Lead Portfolio Manager (co)

Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

Kirk J. Kim

Lead Portfolio Manager (co)

Kirk J. Kim is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. He holds a B.S. in Finance from the University of Southern California. Mr. Kim has 13 years of investment experience.

Joshua D. Shaskan, CFA

Lead Portfolio Manager (co)

Joshua D. Shaskan is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Small and Small/Mid (SMID) Growth Equity disciplines. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Shaskan served as an Investment Specialist for three years at Wells Fargo Securities and was also previously a Financial Advisor at Prudential Securities. He earned a B.A. from University of California, Davis and an M.B.A. from University California, Los Angeles. Mr. Shaskan has earned the right to use the Chartered Financial Analyst designation and has 16 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.

8

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Equity Fund

Objective

The Fund seeks to maximize long-term growth.

Principal Strategies and Policies

The Fund’s Sub-Adviser, TIM, uses a “bottom-up” approach to investing and builds the Fund’s portfolio one company at a time by investing Fund assets principally in equity securities. When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

TIM generally invests at least 80% of the Fund’s net assets in a diversified portfolio of domestic common stocks. TIM believes in long-term investing and does not attempt to time the market.

TIM employs a rigorous research approach and buys securities of companies it believes have the defining features of premier growth companies that are undervalued in the stock market. Premier companies, in the opinion of TIM, have many of all of the following features:

•   shareholder-oriented management

•   dominance in market share

•   cost production advantages

•   leading brands

•   self-financed growth

•   attractive reinvestment opportunities

While TIM invests principally in domestic common stocks, the Fund may, to a lesser extent, invest in other securities or use other investment strategies in pursuit of its investment objective.

Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options and swaps, and also in foreign securities.

The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. The Fund is subject to the following principal risks, as well as other risks described in Appendix A:

Market

The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

Stocks

Stocks may be volatile — their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down.

Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be

9

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Equity Fund

difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Sub-Adviser may not make use of derivatives for a variety of reasons.

Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

Small- or Medium-Sized Companies

Investing in small and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuers are subject. These risks include, without limitation:

•   different accounting and reporting practices

•   less information available to the public

•   less (or different) regulation of securities markets

•   more complex business negotiations

•   less liquidity

•   more fluctuations in prices

•   delays in settling foreign securities transactions

•   higher costs for holding shares (custodial fees)

•   higher transaction costs

•   vulnerability to seizure and taxes

•   political or financial instability and small markets

•   different market trading days

Currency

When the Fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the Fund’s investments in foreign currency denominated securities may reduce the return of the Fund.

Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

•   market risk: fluctuations in market value

•   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more vulnerable the value of a fixed-income security is to fluctuations in interest rates

•   prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

•   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

•   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in

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Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Equity Fund

pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s Sub-Adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Focused Investing

To the extent the Fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

Please also see the Fund’s website at www.transamericafunds.com (select Transamerica Premier Funds) for more information about the Fund.

You may lose money if you invest in this Fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the Fund’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund’s Statement of Additional Information. The Fund publishes its holdings on its website at www.transamericafunds.com (select Transamerica Premier Funds) 25 days after the end of each month. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the Fund by showing you how the Fund’s performance has varied from year to year and how the Fund’s average annual total returns for different periods compare to the returns of broad measures of market performance. The Fund’s primary benchmark, the Russell 1000^® Growth Index, and the Fund’s secondary benchmark, the Standard & Poor’s 500 Stock Index (“S&P 500 Index”), are widely recognized, unmanaged indexes of market performance. Absent any limitation of the Fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 (%)

 Best calendar quarter: 29.80% for quarter ended 12/31/1999

­ ­

 Worst calendar quarter: (23.94%) for quarter ended 12/31/2008

Average Annual Total Returns (as of 12/31/08)*
	1 Year			5 Years			10 Years
Return Before Taxes		(44.74%	)		(1.78%	)		(1.56%	)
Return After Taxes on Distributions**		(44.88%	)		(2.09%	)		(2.27%	)
Return After Taxes on Distributions and Sale of Fund Shares**		(28.89%	)		(1.38%	)		(1.24%	)
Russell 1000® Growth Index†		(38.44%	)		(3.42%	)		(4.27%	)
S&P 500 Index††		(37.00%	)		(2.19%	)		(1.38%	)

 *Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account such as a 401(k) plan or an individual retirement account.

 **The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

 †The Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000^® Growth Index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

 ††The S&P 500 Index consists of 500 widely held, publicly traded common stocks. The S&P 500 Index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

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Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Equity Fund

Fees and Expenses

The table below provides a breakdown of the expenses you may pay if you invest in shares of the Fund. This table sets forth the estimated fees and expenses you may pay if you invest in the Fund’s shares, and, unless otherwise indicated, reflects expenses incurred by the Fund during its fiscal year ended December 31, 2008. Actual expenses may vary significantly.

Shareholder Fees

(fees paid directly from your investment)

Maximum Sales Charge (load) Imposed on Purchases (as a % of offering prices)	None
Maximum Deferred Sales Charge (load) (as a % of offering prices)	None
Redemption Fee (as a % of amount redeemed)	None

Annual Fund Operating Expenses
(expenses that are deducted from fund assets)¹

Management Fees	0.85%
Distribution and Service (12b-1) Fees	0.25%
Other Expenses	0.23%
Total Annual Fund Operating Expenses2	1.33%
Expense Reduction	0.18%
Net Operating Expenses	1.15%

 ¹Annual Fund operating expenses are based upon the Fund’s expenses for the fiscal year ended December 31, 2008, restated to reflect current contractual advisory fees.

 ²Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.15%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.15% (other than interest, taxes, brokerage commissions and extraordinary expenses).

A $25 fee is assessed every year against an account that has been open for over 2 years whose balance is less than $1,000.

Example

The table below is to help you compare the cost of investing in this Fund with the cost of investing in other mutual funds.

The example assumes that you make a one-time investment of $10,000 in the Fund, reinvested all distributions and dividends without a sales charge, and held your shares for the time periods shown and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance) and that the Fund’s operating expenses remain the same. The example assumes no fees for IRA accounts. Costs are the same whether you redeem at the end of any period or not.

Investment Period
1 Year		3 Years		5 Years		10 Years
$	117	$	404	$	712	$	1,586

The actual expenses may be more or less than those shown.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716

For additional information about TAM, see the section entitled “Shareholder Information — Investment Adviser” of this prospectus.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, CA 90025

For additional information about TIM, see the section entitled “Shareholder Information — Sub-Adviser” of this prospectus.

Portfolio Managers

Gary U. Rollé, CFA

Portfolio Manager (lead)

Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.

Geoffrey I. Edelstein, CFA, CIC

Portfolio Manager (co)

Geoffrey I. Edelstein is Principal, Managing Director and Portfolio Manager at TIM. He co-manages institutional and TIM’s private separate accounts and sub-advised funds in the Equity discipline.

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Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Equity Fund

Mr. Edelstein’s analytical responsibilities include the Consumer Staples sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Westcap was co-founded by Mr. Edelstein in 1992. Prior to Westcap, he practiced Corporate and Real Estate Law from 1988-1991. Mr. Edelstein earned a B.A. from University of Michigan and a J.D. from Northwestern University School of Law. He was a member of the AIMR Blue Ribbon Task Force on Soft Dollars, 1997, and has earned the right to use the Chartered Financial Analyst designation. He is also a member of the Board of Governors’ of the Investment Adviser Association and the Board of Directors of EMQ Families First, the largest children’s agency in California. Mr. Edelstein has 17 years of investment experience.

Edward S. Han

Portfolio Manager (co)

Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

John J. Huber, CFA

Portfolio Manager (co)

John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Large and Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience.

Peter O. Lopez

Portfolio Manager (co)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services, Inc. from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 18 years of investment experience.

Erik U. Rollé

Portfolio Manager (co)

Erik U. Rollé is a Securities Analyst and Co-Portfolio Manager at TIM. He co-manages sub-advised funds and institutional separate accounts in the Growth Equity discipline. Prior to joining TIM in 2005, Mr. Rollé worked as a Research Associate at Bradford & Marzec where his primary responsibilities were within trading and credit research. He received a B.S. in Finance and a B.S. in Journalism from the University of Colorado at Boulder. Mr. Rollé has 6 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the Fund.

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Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Growth Opportunities Fund             

Objective

The Fund seeks to maximize long-term growth.

Principal Strategies and Policies

The Fund’s Sub-Adviser, TIM, uses a “bottom-up” approach to investing and builds the Fund’s portfolio one company at a time by investing fund assets principally in:

•   equity securities such as common stocks, preferred stocks, rights, warrants and securities convertible into or exchangeable for common stocks of small and medium capitalization companies

TIM, under normal market conditions, invests at least 65% of the Fund’s assets in a diversified portfolio of equity securities. The companies issuing these securities are companies with small- and medium-sized market capitalization whose market capitalization or annual revenues are no more than $10 billion at the time of purchase.

It is the opinion of TIM that companies with smaller and medium-sized capitalization levels are less actively followed by security analysts, and, therefore, they may be undervalued, providing strong opportunities for a rise in value.

TIM uses a “bottom-up” approach in investing. When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors.

TIM selects stocks that are issued by U.S. companies which, in its opinion, show:

•   strong potential for steady growth

•   high barriers to competition

•   experienced management incentivized along shareholder interests

While the Fund invests principally in equity securities, TIM may also, to a lesser extent, invest in debt securities or other securities and investment strategies in pursuit of its investment objective.

The Fund may invest in assets its cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. The Fund is subject to the following principal risks, as well as other risks described in Appendix A:

Market

The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

Stocks

Stocks may be volatile — their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down.

Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

Preferred Stocks

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right

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Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Growth Opportunities Fund             

to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

Warrants and Rights

Warrants and rights may be considered more speculative than certain other types of investments because they do not entitle a holder to the dividends or voting rights for the securities that may be purchased. They do not represent any rights in the assets of the issuing company. Also, the value of a warrant or right does not necessarily change with the value of the underlying securities. A warrant or right ceases to have value if it is not exercised prior to the expiration date.

Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase. Convertible securities generally offer lower interest or dividend yields than nonconvertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

Value Investing

The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock considered to be undervalued may actually be appropriately priced. The Fund may underperform other equity funds that use different investing styles. The Fund may also underperform other equity funds using the value style.

Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, may be subject to or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Sub-Adviser may not make use of derivatives for a variety of reasons.

Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

•   different accounting and reporting practices

•   less information available to the public

•   less (or different) regulation of securities markets

•   more complex business negotiations

•   less liquidity

•   more fluctuations in prices

•   delays in settling foreign securities transactions

•   higher costs for holding shares (custodial fees)

•   higher transaction costs

•   vulnerability to seizure and taxes

•   political or financial instability and small markets

•   different market trading days

Currency

When the Fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the

15

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Growth Opportunities Fund             

Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund.

Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

•   market risk: fluctuations in market value

•   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more vulnerable the value of a fixed-income security is to fluctuations in interest rates

•   prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

•   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

•   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s Sub-Adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Please also see the Fund’s website at www.transamericafunds.com (select Transamerica Premier Funds) for more information about the Fund.

You may lose money if you invest in this Fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the Fund’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund’s Statement of Additional Information. The Fund publishes its holdings on its website at www.transamericafunds.com (select Transamerica Premier Funds) 25 days after the end of each month. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the Fund by showing you how the Fund’s performance has varied from year to year and how the Fund’s average annual total returns for different periods compared to the returns of broad measures of market performance. The Fund’s benchmark, the Russell Midcap^® Growth Index, is a widely recognized, unmanaged index of market performance. Absent any limitation of the Fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

16

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Growth Opportunities Fund             

Year-by-Year Total Return as of 12/31 (%)

 Best calendar quarter: 53.56% for quarter ended 12/31/1999

­ ­

 Worst calendar quarter: (36.17%) for quarter ended 3/31/2001

Average Annual Total Returns (as of 12/31/08)*
	1 Year			5 Years			10 Years
Return Before Taxes		(40.85%	)		0.13%			2.08%
Return After Taxes on Distributions**		(40.85%	)		(0.01%	)		1.10%
Return After Taxes on Distributions and Sale of Fund Shares**		(26.56%	)		0.19%			1.74%
Russell Midcap® Growth Index†		(44.32%	)		(2.33%	)		(0.19%	)
Russell 2500® Growth Index††		(41.50%	)		(2.24%	)		0.75%

 *Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.

 **The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

 †The Russell Midcap^® Growth Index measures the performance of mid-cap growth companies (mid-cap companies with high price-to-book ratios and high forecasted growth values). Effective September 18, 2008, the Russell Midcap^® Growth Index became the Fund’s primary benchmark to better align the Fund’s benchmark to reflect the universe of securities in the Fund’s portfolio.

 ††The Russell 2500^® Growth Index is a widely recognized, unmanaged index of market performance which measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. This index served as the Fund’s primary benchmark prior to September 18, 2008, at which time it was replaced with the Russell Midcap^® Growth Index.

These indexes do not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities represented by such indexes.

Fees and Expenses

The table below provides a breakdown of the expenses you may pay if you invest in shares of the Fund. This table sets forth the estimated fees and expenses you may pay if you invest in the Fund’s shares, and, unless otherwise indicated, reflects expenses incurred by the Fund during its fiscal year ended December 31, 2008. Actual expenses may vary significantly.

Shareholder Fees

(fees paid directly from your investment)

Maximum Sales Charge (load) Imposed on Purchases (as a % of offering price)	None
Maximum Deferred Sales Charge (load) (as a % of offering price)	None
Redemption Fee (as a % of amount redeemed)	None

Annual Fund Operating Expenses

(expenses that are deducted from fund assets)

Management Fees1	0.85%
Distribution and Service (12b-1) Fees	0.25%
Other Expenses2	0.53%
Total Annual Fund Operating Expenses	1.63%
Expense Reduction3	0.23%
Net Operating Expenses	1.40%

 ¹Management fees have been restated to reflect current contractual fees.

 ²Other expenses have been restated to reflect expenses the Fund expects to incur during its current fiscal year.

 ³Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.40%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.40% (other than interest, taxes, brokerage commissions and extraordinary expenses).

A $25 fee is assessed every year against an account that has been open for over 2 years whose balance is less than $1,000.

Example

The table below is to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The example assumes that you make a one-time investment of $10,000 in the Fund, reinvested all distributions and dividends without a sales charge, and held your shares for the time periods shown and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance) and that the Fund’s operating expenses remain the same. The example assumes no fees

17

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Growth Opportunities Fund             

for IRA accounts. Costs are the same whether you redeem at the end of any period or not.

Investment Period
1 Year	3 Years	5 Years	10 Years
$143	$492	$865	$1,913

The actual expenses may be more or less than those shown.

Transamerica Premier Growth Opportunities Fund             

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716

For additional information about TAM, see the section entitled “Shareholder Information — Investment Adviser” of this prospectus.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, CA 90025

For additional information about TIM, see the section entitled “Shareholder Information — Sub-Adviser” of this prospectus.

Portfolio Managers

Edward S. Han

Lead Portfolio Manager (lead)

Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in Economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

John J. Huber, CFA

Lead Portfolio Manager (lead)

John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Large and Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio manager’s compensation, other accounts managed by the portfolio manager, and the portfolio manager’s ownership of securities in the Fund.

18

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Diversified Equity Fund                             

Objective

The Fund seeks to maximize capital appreciation.

Principal Strategies and Policies

The Fund’s Sub-Adviser, TIM, generally invests at least 80% of the Fund’s assets in a diversified portfolio of domestic equity securities. TIM, uses an intrinsic valuation discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long-term, above-average rate of return. The Fund typically limits its holdings to fewer than 60 companies.

TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual companies. As part of TIM’s strategy, the Fund’s portfolio is constructed one company at a time. Each company passes through a rigorous research process and stands on its own merits as a viable investment in TIM’s opinion.

In projecting cash flows and determining earnings potential, TIM uses multiple factors such as:

•   the quality of the management team

•   the company’s ability to earn returns on capital in excess of the cost of capital

•   competitive barriers to entry

•   the financial condition of the company

To achieve the Fund’s goal, TIM may invest in securities issued by companies of all sizes. Generally, however, TIM will invest in the securities of companies whose market capitalization (total market value of publicly traded securities) is greater than $500 million.

Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options and swaps, and also in foreign securities.

The Fund may invest its assets in cash, cash equivalent securities or short-term securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. The Fund is subject to the following principal risks, as well as other risks described in Appendix A:

Market

The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

Stocks

Stocks may be volatile — their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down.

Focused Investing

To the extent the Fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

Growth Stocks

Growth securities can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

19

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Diversified Equity Fund                             

Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Sub-Adviser may not make use of derivatives for a variety of reasons.

Small- or Medium-Sized Companies

Investing in small and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies, particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources, and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

•   different accounting and reporting practices

•   less information available to the public

•   less (or different) regulation of securities markets

•   more complex business negotiations

•   less liquidity

•   more fluctuations in prices

•   delays in settling foreign securities transactions

•   higher costs for holding shares (custodial fees)

•   higher transaction costs

•   vulnerability to seizure and taxes

•   political or financial instability and small markets

•   different market trading days

Value Investing

The value approach to investing carries the risk that the market will not recognize a security’s intrinsic value for a long time, or that a stock judged to be undervalued may actually be appropriately priced. The Fund may underperform other equity funds that use different investing styles. The Fund may also underperform other equity funds using the value style.

Please also see the Fund’s website at www.transamericafunds.com (select Transamerica Premier Funds) for more information about the Fund.

You may lose money if you invest in this Fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the Fund’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund’s Statement of Additional Information. The Fund publishes its holdings on its website at www.transamericafunds.com (select Transamerica Premier Funds) 25 days after the end of each month. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the Fund by showing you how the Fund’s performance has varied from year to year and how the Fund’s average annual total returns for different periods compared to the returns of a broad measure of market performance. The Fund’s benchmark, the Standard & Poor’s 500 Stock Index (“S&P 500 Index”), is a widely

20

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Diversified Equity Fund                             

recognized, unmanaged index of market performance. Absent any limitation of the Fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 (%)

 Best calendar quarter: 16.18% for quarter ended 3/31/2000

­ ­

 Worst calendar quarter: (24.40%) for quarter ended 12/31/2008

Average Annual Total Returns (as of 12/31/08)*
	1 Year			5 Years			10 Years
Return Before Taxes		(40.93%	)		(1.18%	)		0.35%
Return After Taxes on Distributions**		(41.24%	)		(1.40%	)		0.15%
Return After Taxes on Distributions and Sale of Fund Shares**		(26.29%	)		(0.96%	)		0.30%
S&P 500 Index†		(37.00%	)		(2.19%	)		(1.38%	)

 *Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.

 **The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

 †The S&P 500 Index consists of 500 widely held, publicly traded common stocks. The S&P 500 Index does not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Fees and Expenses

The table below provides a breakdown of the expenses you may pay if you invest in shares of the Fund. This table sets forth the estimated fees and expenses you may pay if you invest in the Fund’s shares, and, unless otherwise indicated, reflects expenses incurred by the Fund during its fiscal year ended December 31, 2008. Actual expenses may vary significantly.

Shareholder Fees

(fees paid directly from your investment)

Maximum Sales Charge (load) Imposed on Purchases (as a % of offering price)	None
Maximum Deferred Sales Charge (load) (as a % of offering price)	None
Redemption Fee (as a % of amount redeemed)	None

Annual Fund Operating Expenses
(expenses that are deducted from fund assets)¹

Management Fees	0.75%
Distribution and Service (12b-1) Fees	0.25%
Other Expenses	0.32%
Total Annual Fund Operating Expenses	1.32%
Expense Reduction2	0.17%
Net Operating Expenses	1.15%

 ¹Annual Fund operating expenses are based upon the Fund’s expenses for the fiscal year ended December 31, 2008, restated to reflect current contractual advisory fees.

 ²Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.15%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.15% (other than interest, taxes, brokerage commissions and extraordinary expenses).

A $25 fee is assessed every year against an account that has been open for over 2 years whose balance is less than $1,000.

Example

The table below is to help you compare the cost of investing in this Fund with the cost of investing in other mutual funds.

The example assumes that you make a one-time investment of $10,000 in the Fund, reinvested all distributions and dividends without a sales charge, and held your shares for the time periods shown and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance) and that the Fund’s operating expenses remain the same. The example assumes no fees for IRA accounts.

21

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Diversified Equity Fund                             

Costs are the same whether you redeem at the end of any period or not.

Investment Period
1 Year		3 Years		5 Years		10 Years
$	117	$	402	$	707	$	1,575

The actual expenses may be more or less than those shown.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716

For additional information about TAM, see the section entitled “Shareholder Information — Investment Adviser” of this prospectus.

Sub-Adviser

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, CA 90025

For additional information about TIM, see the section entitled “Shareholder Information — Sub-Adviser” of this prospectus.

Portfolio Managers

Gary U. Rollé, CFA

Portfolio Manager (lead)

Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.

Geoffrey I. Edelstein, CFA, CIC

Portfolio Manager (co)

Geoffrey I. Edelstein is Principal, Managing Director and Portfolio Manager at TIM. He co-manages institutional and TIM’s private separate accounts and sub-advised funds in the Equity disciplines. Mr. Edelstein’s analytical responsibilities include the Consumer Staples sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Westcap was co-founded by Mr. Edelstein in 1992. Prior to Westcap, he practiced Corporate and Real Estate Law from 1988-1991. Mr. Edelstein earned a B.A. from University of Michigan and a J.D. from Northwestern University School of Law. He was a member of the AIMR Blue Ribbon Task Force on Soft Dollars, 1997, and has earned the right to use the Chartered Financial Analyst designation. He is also a member of the Board of Governors’ of the Investment Adviser Association and the Board of Directors of EMQ Families First, the largest children’s agency in California. Mr. Edelstein has 17 years of investment experience.

Kirk R. Feldhus

Portfolio Manager (co)

Kirk R. Feldhus is a Securities Analyst at TIM. He co-manages institutional and retail portfolios for the diversified equity and all-cap value strategies. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Feldhus served as Vice President at Crystal Cove Capital. He has worked as a research associate at Bank of America Securities and as a management consultant at Ernst & Young. He holds an M.B.A. from The Marshall School at the University of Southern California and earned a B.S. from Colorado State University. Mr. Feldhus has 9 years of investment experience.

Thomas E. Larkin, III

Portfolio Manager (co)

Mr. Larkin co-manages institutional and retail portfolios in the diversified equity strategy. In addition, his senior securities analyst responsibilities include covering the producer durables, autos and transportation, and the materials and processing sectors. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Larkin interned with Morgan Stanley in the Private Wealth Management Division and with Trust Company of the West as an analyst with their Worldwide Opportunities Emerging Markets Fund. He earned a B.A. in Economics from Duke University. Mr. Larkin is currently a CFA Level I candidate and has 8 years of investment experience.

John D. Lawrence, CFA

Portfolio Manager (co)

John D. Lawrence is a Portfolio Manager at TIM. He has portfolio management responsibilities on sub-advised funds and institutional separate accounts in the Growth Equity discipline. Mr. Lawrence’s analyst responsibilities include covering the Energy, Consumer Discretionary and the Utilities sectors. He joined TIM in 2005 when

22

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Diversified Equity Fund                             

the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Lawrence was a Research Associate at Credit Suisse First Boston and an Assistant Vice President at Sanders Morris Harris. He holds an M.B.A. from University of California, Los Angeles and a B.A. from Rice University. Mr. Lawrence has earned the right to use the Chartered Financial Analyst designation and has 8 years of investment experience.

Peter O. Lopez

Portfolio Manager (co)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as a Senior Fixed Income Analyst for Transamerica Investment Services, Inc. from 1997-2000. He holds an M.B.A. in Finance and Accounting from The University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 18 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers’ and the portfolio managers’ ownership of securities in the Fund.

23

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Balanced Fund

Objective

The Fund seeks to achieve long-term capital growth and current income with a secondary objective of capital preservation, by balancing investments among stocks, bonds, and cash or cash equivalents.

Principal Strategies and Policies

The Fund’s Sub-Adviser, TIM, seeks to achieve the Fund’s objective by investing primarily in common stocks and bonds with maturities of less than 30 years. TIM may also invest in cash or cash equivalents such as money market funds and other short-term investment instruments. This requires the managers of each portion of the Fund to be flexible in managing the Fund’s assets. At times, TIM may shift portions held in bonds and stocks according to business and investment conditions. However, at all times, the Fund will hold at least 25% of its assets in non-convertible fixed-income securities.

To achieve its goal, TIM invests in a diversified portfolio of common stocks, bonds, money market instruments and other short-term debt securities issued by companies of all sizes. TIM’s equity and fixed-income management teams work together to build a portfolio of growth stocks combined with bonds that TIM considers to be of good credit quality purchased at favorable prices.

When a sub-adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors. TIM uses a “bottom-up” approach to investing. It studies industry and economic trends, but focuses on researching individual issuers. The Fund is constructed one security at a time. Each issuer passes through a research process and stands on its own merits as a viable investment in TIM’s opinion.

Equity Investments — TIM uses an intrinsic value discipline in selecting securities, based on strong earnings and cash flows to foster future growth, with the goal of producing a long-term, above-average rate of return. In projecting cash flows and determining earning potential and valuation, TIM uses multiple factors such as:

•   the quality of the management team

•   the company’s ability to earn returns on capital in excess of the cost of capital

•   competitive barriers to entry

•   the financial condition of the company.

TIM takes a long-term approach to investing and views each investment in a company as owning a piece of the business.

Fixed-Income Investments — TIM’s bond management team seeks out bonds with credit strength of the quality that it believes could warrant higher ratings, which, in turn, could lead to higher valuations. To identify these bonds, the bond research team performs in-depth income and credit analysis on companies issuing bonds under consideration for the Fund. It also compiles bond price information from many different bond markets and evaluates how these bonds can be expected to perform with respect to recent economic developments. TIM analyzes this market information daily, negotiating each trade and buying bonds at the best available prices.

The Fund may invest in mortgage-backed securities and lower-rated bonds. The Fund may also invest in derivative securities, including futures, options and options on futures, swaps and foreign securities.

The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. The Fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

Market

The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

24

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Balanced Fund

Stocks

Stocks may be volatile — their prices may go up and down dramatically over the shorter term. These price movements may result from factors affecting individual companies, industries, the securities market as a whole or the overall economy. Because the stocks the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down.

Growth Stocks

Growth stocks can be volatile for several reasons. Since growth companies usually reinvest a high proportion of their earnings in their own businesses, they may lack the dividends often associated with the value stocks that could cushion their decline in a falling market. Also, since investors buy growth stocks because of their expected superior earnings growth, earnings disappointments often result in sharp price declines. Certain types of growth stocks, particularly technology stocks, can be extremely volatile and subject to greater price swings than the broader market.

Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

•   market risk: fluctuations in market value

•   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

•   prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

•   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

•   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s Sub-Adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Sub-Adviser may not make use of derivatives for a variety of reasons.

Mortgage-Related Securities

Mortgage-related securities in which the Fund may invest represent pools of mortgage loans assembled for sales to investors by various governmental agencies or government-related fluctuation organizations, as well as by private issuers such as commercial banks, savings and loan institutions, mortgage bankers and private mortgage insurance companies. Unlike mortgage-related securities issued or guaranteed by the U.S. government or its agencies and instrumentalities, mortgage-

25

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Balanced Fund

related securities issued by private issuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement), and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics. Real estate markets have been particularly affected by the current financial crisis, which has had an adverse effect on mortgage-related securities. Mortgage-related securities are subject to special risks. The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the Fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities. Upon the occurrence of certain triggering events or defaults, the investors in a security held by the Fund may become the holders of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. The Fund’s investments in mortgage-related securities are also exposed to prepayment or call risk, which is the possibility that mortgage holders will repay their loans early during periods of falling interest rates, requiring the Fund to reinvest in lower-yielding instruments and receive less principal or income than originally was anticipated. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. This is known as extension risk.

Foreign Securities

Investments in foreign securities including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks include, without limitation:

•   different accounting and reporting practices

•   less information available to the public

•   less (or different) regulation of securities markets

•   more complex business negotiations

•   less liquidity

•   more fluctuations in prices

•   delays in settling foreign securities transactions

•   higher costs for holding shares (custodial fees)

•   higher transaction costs

•   vulnerability to seizure and taxes

•   political or financial instability and small markets

•   different market trading days

Currency

When the Fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund.

High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities which are rated below “investment grade” or, if unrated, are considered by the Sub-Adviser to be of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the Fund’s Sub-Adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

Small- or Medium-Sized Companies

Investing in small- and medium-sized companies involves greater risk than is customarily associated with more established companies. Stocks of such companies particularly developing companies, generally are subject to more volatility in price than larger company securities. Among the reasons for the greater price volatility are the less certain growth prospects of smaller companies, the lower degree of liquidity in the markets for such securities, and the greater sensitivity of smaller companies to changing economic conditions. Smaller companies often have limited product lines, markets, or financial resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.

26

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Balanced Fund

Please also see the Fund’s website at www.transamericafunds.com (select Transamerica Premier Funds) for more information about the Fund.

You may lose money if you invest in this Fund.

These and other risks are more fully described in the section entitled “Explanation of Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the Fund’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund’s Statement of Additional Information. The Fund publishes its holdings on its website at www.transamericafunds.com (select Transamerica Premier Funds) 25 days after the end of each month. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the Fund by showing you how the Fund’s performance has varied from year to year, and how the Fund’s average annual total returns for different periods compared to the returns of broad measures of market performance. The Fund’s primary benchmark, the Standard & Poor’s 500 Stock Index (“S&P 500 Index”), and the Fund’s secondary benchmark, the Barclays Capital U.S. Aggregate Index (formerly, Lehman Brothers U.S. Aggregate Index), are widely recognized, unmanaged indexes of market performance. Absent any limitation of the Fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 (%)

 Best calendar quarter: 14.63% for quarter ended 12/31/1999

­ ­

 Worst calendar quarter: (17.27%) for quarter ended 12/31/2008

Average Annual Total Returns (as of 12/31/08)*
	1 Year			5 Years			10 Years
Return Before Taxes		(33.27%	)		(0.51%	)		2.69%
Return After Taxes on Distributions**		(34.01%	)		(1.03%	)		1.78%
Return After Taxes on Distributions and Sale of Fund Shares**		(20.95%	)		(0.44%	)		2.01%
S&P 500 Index†		(37.00%	)		(2.19%	)		(1.38%	)
Barclays Capital U.S. Aggregate Index††		5.24%			4.65%			5.63%
Barclays U.S. Government/Credit Bond Index†††		5.70%			4.64%			5.64%

 *Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.

 **The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

 †The S&P 500 Index consists of 500 widely held, publicly traded common stocks.

 ††The Barclays Capital U.S. Aggregate Index (formerly, Lehman Brothers U.S. Aggregate Index) is a broad-based market index that covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, including U.S. Treasury issues, corporate and government-related debt issues, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities.

 †††The Barclays Capital U.S. Government/Credit Bond Index (formerly, Lehman Brothers U.S. Government/Credit Bond Index), is a broad-based, unmanaged index of all government and corporate bonds that are investment grade with at least one year to maturity. This Index served as the Fund’s secondary benchmark prior to January 1, 2009.

These indexes do not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities represented by such index.

27

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Balanced Fund

Fees and Expenses

The table below provides a breakdown of the expenses you may pay if you invest in shares of the Fund. This table sets forth the estimated fees and expenses you may pay if you invest in the Fund’s shares, and, unless otherwise indicated, reflects expenses incurred by the Fund during its fiscal year ended December 31, 2008. Actual expenses may vary significantly.

Shareholder Fees

(fees paid directly from your investment)

Maximum Sales Charge (load) Imposed on Purchases (as a % of offering price)	None
Maximum Deferred Sales Charge (load) (as a % of offering price)	None
Redemption Fee (as a % of amount redeemed)	None

Annual Fund Operating Expenses

(expenses that are deducted from fund assets)

Management Fees1	0.75%
Distribution and Service (12b-1) Fees	0.25%
Other Expenses2	0.42%
Total Annual Fund Operating Expenses	1.42%
Expense Reduction3	0.32%
Net Operating Expenses	1.10%

 ¹Management fees have been restated to reflect current contractual fees.

 ²Other expenses have been restated to reflect expenses the Fund expects to incur during its current fiscal year.

 ³Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 1.10%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 1.10% (other than interest, taxes, brokerage commissions and extraordinary expenses).

A $25 fee is assessed every year against an account that has been open for over 2 years whose balance is less than $1,000.

Example

The table below is to help you compare the cost of investing in this Fund with the cost of investing in other mutual funds.

The example assumes that you make a one-time investment of $10,000 in the Fund, reinvested all distributions and dividends without a sales charge, and held your shares for the time periods shown and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance) and that the Fund’s operating expenses remain the same. The example assumes no fees for IRA accounts. Costs are the same whether you redeem at the end of any period or not.

Investment Period
1 Year		3 Years		5 Years		10 Years
$	112	$	418	$	746	$	1,674

The actual expenses may be more or less than those shown.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716

For additional information about TAM, see the section entitled “Shareholder Information — Investment Adviser” of this prospectus.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, CA 90025

For additional information about TIM, see the section entitled “Shareholder Information — Sub-Adviser” of this prospectus.

Portfolio Managers:

Gary U. Rollé, CFA

Portfolio Manager (lead-equity)

Gary U. Rollé is Principal, Managing Director, Chief Executive Officer and Chief Investment Officer of TIM. He manages sub-advised funds and institutional separate accounts in the Large Growth Equity discipline. Mr. Rollé joined Transamerica in 1967. From 1980 to 1983 he served as the Chief Investment Officer for SunAmerica then returned to Transamerica as Chief Investment Officer. Throughout his 23 year tenure as CIO, Mr. Rollé has been responsible for creating and guiding the TIM investment philosophy. He holds a B.S. in Chemistry and Economics from the University of California at Riverside and has earned the right to use the Chartered Financial Analyst designation. Mr. Rollé has 41 years of investment experience.

28

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Balanced Fund

Greg D. Haendel, CFA

Portfolio Manager (lead-fixed income)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

Derek S. Brown, CFA

Portfolio Manager (co-fixed income)

Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.

Geoffrey I. Edelstein, CFA, CIC

Portfolio Manager (co-equity)

Geoffrey I. Edelstein is Principal, Managing Director and Portfolio Manager at TIM. He co-manages institutional and TIM’s private separate accounts and sub-advised funds in the Equity disciplines. Mr. Edelstein’s analytical responsibilities include the Consumer Staples sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Westcap was co-founded by Mr. Edelstein in 1992. Prior to Westcap, he practiced Corporate and Real Estate Law from 1988-1991. Mr. Edelstein earned a B.A. from University of Michigan and a J.D. from Northwestern University School of Law. He was a member of the AIMR Blue Ribbon Task Force on Soft Dollars, 1997, and has earned the right to use the Chartered Financial Analyst designation. He is also a member of the Board of Governors’ of the Investment Adviser Association and the Board of Directors of EMQ Families First, the largest children’s agency in California. Mr. Edelstein has 17 years of investment experience.

Edward S. Han

Portfolio Manager (co)

Edward S. Han is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Mid Growth Equity discipline and is a member of the Large Growth team. Prior to joining TIM in 1998, he was a Vice President of Corporate Banking at Bank of America. Mr. Han holds an M.B.A. from the Darden Graduate School of Business Administration at the University of Virginia and received his B.A. in economics from the University of California at Irvine. Mr. Han has 14 years of investment experience.

John J. Huber, CFA

Portfolio Manager (co-equity)

John J. Huber is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in the Large and Mid Growth Equity discipline. Mr. Huber’s analytical responsibilities include covering the Financial Services sector. He joined TIM in 2005 when the firm acquired Westcap Investors, LLC. Prior to Westcap, Mr. Huber was a Senior Associate at Wilshire Associates and an Information Technology Consultant at Arthur Andersen. He earned a B.A. from Columbia University and an M.B.A. from University of California, Los Angeles. Mr. Huber has earned the right to use the Chartered Financial Analyst designation and has 10 years of investment experience.

Peter O. Lopez

Portfolio Manager (co-fixed income)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as Senior Fixed Income Analyst for Transamerica Investment Services, Inc. from 1997-2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

Erik U. Rollé

Portfolio Manager (co-equity)

Erik U. Rollé is a Securities Analyst and Co-Portfolio Manager at TIM. He co-manages sub-advised funds and institutional separate accounts in the Growth Equity discipline. Prior to joining TIM in 2005, Mr. Rollé worked as a Research Associate at Bradford & Marzec where his primary responsibilities were within trading and credit research. He received a B.S. in Finance and a B.S. in Journalism

29

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Balanced Fund

from the University of Colorado at Boulder. Mr. Rollé has 6 years of investment experience.

Brian W. Westhoff, CFA

Portfolio Manager (co-fixed income)

Brian W. Westhoff is a Portfolio Manager at TIM. Prior to joining TIM in 2003, Mr. Westhoff worked as an Equity Research Intern with Credit Suisse Asset Management, as a Fixed Income Investment Analyst at St. Paul Companies, and as an Argentine/Oil and Gas Equity Research Intern with Merrill Lynch in Argentina. He holds an M.B.A. from Thunderbird, the Garvin Graduate School of International Management, and received a B.S. in Business Administration from Drake University. Mr. Westhoff has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.

30

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier High Yield Bond Fund                               

Objective

The Fund seeks to achieve a high total return (income plus capital appreciation) by investing primarily in debt instruments and convertible securities, with an emphasis on lower-quality securities.

Principal Strategies and Policies

The Fund generally invests at least 80% of its assets in a diversified selection of lower-rated bonds (below investment grade), commonly known as “junk bonds.” These are bonds rated below Baa by Moody’s or below BBB by Standard & Poor’s (see “Summary of Bond Ratings”). The Fund’s Sub-Adviser, TIM, selects bonds that it believes are likely to be upgraded, return high current income, rise in value, and are unlikely to default on payments.

TIM uses a “bottom-up” approach to investing. TIM studies industry and economic trends, but focuses on researching individual issuers. The Fund’s portfolio is constructed one company at a time. Each company passes through a research process and stands on its own merits as a viable investment in TIM’s opinion.

To achieve the Fund’s goal, TIM’s fixed-income management team:

•   Seeks to achieve price appreciation and minimize price volatility by identifying bonds that are likely to be upgraded by qualified rating organizations

•   Employs research and credit analysts who seek to minimize purchasing bonds that default by assessing the likelihood of timely payment of interest and principal

•   Invests Fund assets in convertible and other securities consistent with the objective of high total return

The interest rates on short-term obligations held in the Fund’s portfolio will vary, rising or falling with short-term interest rates generally. The Fund’s yield will tend to lag behind general changes in interest rates.

The ability of the Fund’s yield to reflect current market rates will depend on how quickly the obligations in its portfolio mature and how much money is available for investment at current market rates.

Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options and swaps, and also in foreign securities.

The Fund may invest its assets in cash, cash equivalent securities or short term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. The Fund is subject to the following principal risks, as well as other risks described in Appendix A:

Your primary risk in investing in the Fund is you could lose money. The value of the Fund can fall if interest rates go up, or if the issuer fails to pay the principal or interest payments when due. Since the Fund invests in lower-rated bonds, it is subject to a greater risk of loss of principal due to an issuer’s non-payment of principal or interest; and its performance is subject to more variance due to market conditions, than a fund investing in higher-rated bonds. You should carefully assess the risks associated with an investment in this Fund.

Market

The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities which are rated below “investment grade” or are not rated, but are of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund, like the Fund, with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt

31

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier High Yield Bond Fund                               

securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the Fund’s Sub-Adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

• market risk: fluctuations in market value

•  interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

•  prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

•  extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

•  default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s Sub-Adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Sub-Adviser may not make use of derivatives for a variety of reasons.

Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase, and conversely, to increase as interest rates decline. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S.

32

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier High Yield Bond Fund                               

and foreign issuer markets are subject. These risks include, without limitation:

•   different accounting and reporting practices

•   less information available to the public

•   less (or different) regulation of securities markets

•   more complex business negotiations

•   less liquidity

•   more fluctuations in prices

•   delays in settling foreign securities transactions

•   higher costs for holding shares (custodial fees)

•   higher transaction costs

•   vulnerability to seizure and taxes

•   political or financial instability and small markets

•   different market trading days

Currency

When the Fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the Fund’s investments in foreign currency denominated securities may reduce the return of the Fund.

Focused Investing

To the extent the Fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

Please also see the Fund’s website at www.transamericafunds.com (select Transamerica Premier Funds) for more information about the Fund.

You may lose money if you invest in this Fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the Fund’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund’s Statement of Additional Information. The Fund publishes its holdings on its website at www.transamericafunds.com (select Transamerica Premier Funds) 25 days after the end of each

month. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the Fund by showing you how the Fund’s performance has varied from year to year, and how the Fund’s average annual total returns for different periods compare to the returns of broad measures of market performance. The Fund’s primary benchmark, the Merrill Lynch U.S. High Yield, Cash Pay, BB-B Rated Index, and the Fund’s secondary benchmark, the Merrill Lynch U.S. High Yield Cash Pay Index, are widely recognized, unmanaged indexes of market performance. Absent any limitation of the Fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 (%)

 Best calendar quarter: 6.49% for quarter ended 6/30/2003

­ ­

 Worst calendar quarter: (18.18%) for quarter ended 12/31/2008

Average Annual Total Returns (as of 12/31/08)*
	1 Year			5 Years			10 Years
Return Before Taxes		(25.19%	)		(1.40%	)		1.53%
Return After Taxes on Distributions**		(27.51%	)		(3.86%	)		(1.42%	)
Return After Taxes on Distributions and Sale of Fund Shares**		(16.06%	)		(2.34%	)		(0.31%	)
Merrill Lynch U.S. High Yield, Cash Pay, BB-B Rated Index†		(23.63%	)		(0.28%	)		2.47%
Merrill Lynch U.S. High Yield Cash Pay Index††		(26.21%	)		(0.84%	)		2.27%

 *Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.

33

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier High Yield Bond Fund                               

 **The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

 †Merrill Lynch U.S. High Yield, Cash Pay, BB-B Rated Index is an unmanaged index comprised of the value-weighted measure of approximately 1,500 BB and B rated bonds.

 ††Merrill Lynch U.S. High Yield Cash Pay Index is an unmanaged portfolio constructed to mirror the public high-yield debt market.

These indexes do not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities it represents.

Fees and Expenses

The table below provides a breakdown of the expenses you may pay if you invest in shares of the Fund. This table sets forth the estimated fees and expenses you may pay if you invest in the Fund’s shares, and, unless otherwise indicated, reflects expenses incurred by the Fund during its fiscal year ended December 31, 2008. Actual expenses may vary significantly.

Shareholder Fees

(fees paid directly from your investment)

Maximum Sales Charge (load) Imposed on Purchases (as a % of offering price)	None
Maximum Deferred Sales Charge (load) (as a % of offering price)	None
Redemption Fee (as a % of amount redeemed)	None

Annual Fund Operating Expenses

(expenses that are deducted from fund assets)

Management Fees	0.53%
Distribution and Service (12b-1) Fees	0.25%
Other Expenses1	0.79%
Total Annual Fund Operating Expenses	1.57%
Expense Reduction2	0.67%
Net Operating Expenses	0.90%

 ¹Other expenses have been restated to reflect expenses the Fund expects to incur during its current fiscal year.

 ²Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 0.90%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 0.90% (other than interest, taxes, brokerage commissions and extraordinary expenses).

A $25 fee is assessed every year against an account that has been open for over 2 years whose balance is less than $1,000.

Example

The table below is to help you compare the cost of investing in this Fund with the cost of investing in other mutual funds.

The example assumes that you make a one-time investment of $10,000 in the Fund, reinvested all distributions and dividends without a sales charge, and held your shares for the time periods shown and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance) and that the Fund’s operating expenses remain the same. The example assumes no fees for IRA accounts. Costs are the same whether you redeem at the end of any period or not.

Investment Period
1 Year	3 Years	5 Years	10 Years
$92	$430	$792	$1,811

The actual expenses may be more or less than those shown.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)

570 Carillon Parkway

St. Petersburg, FL 33716

For additional information about TAM, see the section entitled “Shareholder Information—Investment Adviser” of this prospectus.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, CA 90025

For additional information about TIM, see the section entitled ”Shareholder Information — Sub-Adviser” of this prospectus.

Portfolio Managers:

Brian W. Westhoff, CFA

Portfolio Manager (co-lead)

Brian W. Westhoff is a Portfolio Manager at TIM. Prior to joining TIM in 2003, Mr. Westhoff worked as an Equity Research Intern with Credit Suisse Asset Management, as a Fixed Income Investment Analyst at St. Paul Companies, and as an Argentine/Oil and Gas Equity Research Intern with Merrill Lynch in Argentina. He holds an M.B.A. from Thunderbird, the Garvin Graduate School of International Management, and received a B.S. in business

34

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier High Yield Bond Fund                               

administration from Drake University. Mr. Westhoff has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

Kirk J. Kim

Portfolio Manager (co-lead)

Kirk J. Kim is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. Mr. Kim holds a B.S. in Finance from the University of Southern California and has 13 years of investment experience.

Peter O. Lopez

Portfolio Manager (co-lead)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as a Senior Fixed Income Analyst for Transamerica Investment Services, Inc. from 1997 to 2000. He holds an M.B.A. in Finance and Accounting from The University of Michigan and received a B.A. in economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

Derek S. Brown, CFA

Portfolio Manager (co)

Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in TIM’s Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.

Greg D. Haendel, CFA

Portfolio Manager (co)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Fund.

35

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Cash Reserve Fund

Objective

The Fund seeks to maximize current income from money market securities consistent with liquidity and preservation of principal.

Principal Strategies and Policies

This is a money market fund. It invests primarily in a diversified selection of high-quality U.S. dollar-denominated money market instruments with remaining maturities of 13 months or less. The Sub-Adviser, TIM, looks for securities with minimal credit risk. The Fund maintains an average maturity of 90 days or less.

To achieve its goal, the Fund invests primarily in:

•   Short-term corporate obligations, including commercial paper, notes and bonds

•   Obligations issued or guaranteed by the U.S. and foreign governments and their agencies or instrumentalities

•   Obligations of U.S. and foreign banks or their foreign branches, and U.S. savings banks

•   Repurchase agreements involving any of the securities mentioned above

The Fund seeks to maintain a stable net asset value of $1.00 per share by:

•   Investing in securities which present minimal credit risk

•   Maintaining the average maturity of obligations held in the Fund’s portfolio at 90 days or less

There can be no assurance that the Fund will maintain a net asset value of $1.00 per share.

Bank obligations purchased for the Fund are limited to U.S. or foreign banks with total assets of $1.5 billion or more. Similarly, savings association obligations purchased for the Fund are limited to U.S. savings banks with total assets of $1.5 billion or more. Foreign securities purchased for the Fund must be issued by foreign governments, agencies or instrumentalities, or banks that meet the minimum $1.5 billion capital requirement. These foreign obligations must also meet the same quality requirements as U.S. obligations. The commercial paper and other short-term corporate obligations TIM buys for the Fund are determined by TIM to present minimal credit risks.

To the extent that the portfolio has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about other investment strategies.

Principal Risks

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, there can be no assurance that this will be the case, and it is possible to lose money by investing in the Fund. The Fund could underperform other short-term debt instruments or money market funds. The Fund is subject to the following principal investment risks, as well as other risks described in Appendix A:

Market

A decline in the market value of a Fund investment, lack of liquidity in the bond markets or other market events, including the ongoing global financial crisis, could cause the value of your investment in the Fund, or its yield, to decline.

Interest Rates

The interest rates on short-term obligations held in the Fund’s portfolio will vary, rising or falling with short-term interest rates generally. The Fund’s yield will tend to lag behind general changes in interest rates.

The Fund could lose money or underperform other short-term debt instruments or money market funds. When interest rates increase, the value of the Fund’s investments will decline. A decrease in interest rates will result in a lower yield and, when interest rates are very low, the Fund’s expenses could absorb all or a significant portion of the Fund’s income.

The ability of the Fund’s yield to reflect current market rates will depend on how quickly the obligations in its portfolio mature and how much money is available for investment at current market rates.

Default or Credit Risk

The Fund is also subject to the risk that the issuer of a security in which it invests (or a guarantor) may fail to pay the principal or interest payments when due. Debt securities also fluctuate in value based on the perceived creditworthiness of issuers. If an obligor for a security held by the Fund fails to pay, otherwise defaults or is perceived to be less creditworthy, the security’s credit rating is downgraded, or the credit quality or value of any underlying assets declines, the value of your investment in the Fund could decline significantly.

The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be

36

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Cash Reserve Fund

disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

The credit quality of the Fund’s securities may change rapidly, particularly during periods of market turmoil. If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s Sub-Adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss. Any of these events may cause the portfolio’s share price to go down.

Bank Obligations

If the Fund concentrates in U.S. bank obligations, the Fund will be particularly sensitive to adverse events affecting U.S. banks. Banks are sensitive to changes in money market and general economic conditions, as well as decisions by regulators that can affect banks’ profitability.

Yield Fluctuation

The Fund invests in short-term money market instruments. As a result, the amount of income paid to you by the Fund will go up or down depending on day-to-day variations in short-term interest rates. Investing in high quality, short-term instruments may result in a lower yield (the income on your investment) than investing in lower quality or longer-term instruments. When interest rates are very low, the Fund’s expenses could absorb all or a significant portion of the Fund’s income, and, if the Fund’s expenses exceed the Fund’s income, the Fund may be unable to maintain its $1.00 net asset value per share.

Redemption

The Fund may experience periods of heavy redemptions that could cause the Fund to liquidate its assets at inopportune times or at a loss or depressed value particularly during periods of declining or illiquid markets. Redemption risk is greater to the extent that the Fund has investors with large shareholdings, short investment horizons, or unpredictable cash flow needs. The redemption by one or more large shareholders of their holdings in the Fund could have an adverse impact on the remaining shareholders in the Fund.

An investment in this Fund is not insured or guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in this Fund.

Please also see the Fund’s website at www.transamericafunds.com (select Transamerica Premier Funds) for more information about the Fund.

Disclosure of Portfolio Holdings

A detailed description of the Fund’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund’s SAI. In addition, investors should note that the Fund publishes its holdings on its website at www.transamericafunds.com (select Transamerica Premier Funds) 25 days after the end of each month. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the Fund by showing you how the Fund’s performance has varied from year to year, and how the Fund’s average annual total returns for different periods. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results. If the Investment Adviser had not waived fees, the aggregate total return of the Fund would have been lower.

Year-by-Year Total Return as of 12/31 (%)

 Best calendar quarter: 1.63% for quarter ended 9/30/2000

­ ­

 Worst calendar quarter: 0.20% for quarter ended 3/31/2004

Average Annual Total Returns (as of 12/31/2008)*
	1 Year		5 Years		10 Years
Return Before Taxes		2.57%		3.35%		3.47%

 *Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.

37

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Cash Reserve Fund

Note: The current day and seven-day effective yields were 1.73% and 1.63% for the Investor Class, respectively, as of December 31, 2008.

You can get current yield information for Transamerica Premier Cash Reserve Fund by calling 1-800-89-ASK-US.

Fees and Expenses

The table below provides a breakdown of the expenses you may pay if you invest in shares of the Fund. This table sets forth the estimated fees and expenses you may pay if you invest in the Fund’s shares, and, unless otherwise indicated, reflects expenses incurred by the Fund during its fiscal year ended December 31, 2008. Actual expenses may vary significantly.

Shareholder Fees

(fees paid directly from your investment)

Maximum Sales Charge (load) Imposed on Purchases (as a % of offering price)	None
Maximum Deferred Sales Charge (load) (as a % of offering price)	None
Redemption Fee (as a % of amount redeemed)	None

Annual Fund Operating Expenses

(expenses that are deducted from fund assets)¹

Management Fees	0.33%
Distribution and Service (12b-1) Fees2	0.00%
Other Expenses	0.27%
Total Annual Fund Operating Expenses	0.60%
Expense Reduction3,4	0.32%
Net Operating Expenses	0.28%

 ¹Annual Fund operating expenses are based upon the Fund’s expenses for the fiscal year ended December 31, 2008, restated to include an adjustment of 0.02% as a result of the U.S. Treasury’s Temporary Guarantee Program for Money Market Funds (the “Program”). This adjustment reflects additional costs associated with participating in the Program for the period of January 1, 2009 through September 18, 2009, and are not covered by the contractual expense cap currently in effect.

 ²The Fund’s distributor has agreed to waive the distribution fees for the Fund until at least April 30, 2010. This fee waiver may be terminated at any time without notice after April 30, 2010.

 ³Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 0.25%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 0.25% (other than interest, taxes, brokerage commissions and extraordinary expenses).

 ⁴In order to avoid a negative yield, TAM or any of its affiliates may waive fees or reimburse expenses of one or more classes of the Fund. Any such waiver or expense reimbursement would be voluntary, could be discontinued at any time, and is subject in certain circumstances to reimbursement by the Fund to TAM or its affiliates. There is no guarantee that the Fund will be able to avoid a negative yield.

A $25 fee is assessed every year against an account that has been open for over 2 years whose balance is less than $1,000.

Example

The table below is to help you compare the cost of investing in this Fund with the cost of investing in other mutual funds.

The example assumes that you make a one-time investment of $10,000 in the Fund, reinvested all distributions and dividends without a sales charge, and held your shares for the time periods shown and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance) and that the Fund’s operating expenses remain the same. The example assumes no fees for IRA accounts. Costs are the same whether you redeem at the end of any period or not.

Investment Period
1 Year	3 Years	5 Years	10 Years
$29	$150	$286	$683

The actual expenses may be more or less than those shown.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM”)
570 Carillon Parkway
St. Petersburg, FL 33716

For additional information about TAM, see the section entitled “Shareholder Information — Investment Adviser” of this prospectus.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM”)
11111 Santa Monica Blvd., Suite 820
Los Angeles, CA 90025

For additional information about TIM, see the section entitled “Shareholder Information—Sub-Adviser” of this prospectus.

38

Transamerica Premier Funds Prospectus – Investor Class Shares

Transamerica Premier Cash Reserve Fund

Portfolio Managers

Greg D. Haendel, CFA

Portfolio Manager (lead)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience

Patty Arrieta-Morales

Portfolio Manager (co)

Patty Arrieta-Morales is a Money Market Trader at TIM. Ms. Arrieta-Morales is the Co-Manager of the Transamerica Premier Cash Reserve Fund. She joined TIM in 1998. Ms. Arrieta-Morales holds a B.S. in Accounting from California State University at Los Angeles and has 12 years of investment experience.

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities of the Fund.

39

Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

INVESTMENT ADVISER

Transamerica Premier Funds’ Board of Directors is responsible for managing the business affairs of Transamerica Premier Funds. The Board oversees the operation of Transamerica Premier Funds by its officers. It also reviews the management of each Fund’s assets by TAM and TIM. You can find additional information about Transamerica Premier Funds’ Directors and officers in the SAI.

TAM, located at 570 Carillon Parkway, St. Petersburg, Florida 33716 serves as Investment Adviser for Transamerica Premier Funds. The Investment Adviser hires the Sub-Adviser to furnish investment advice and recommendations and has entered into a sub-advisory agreement with TIM. The Investment Adviser also monitors the Sub-Adviser’s buying and selling of securities and administration of the Funds.

TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) (“Western Reserve”) and AUSA Holding Company (23%) (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group.

The Funds may rely on an Order from the SEC (Release IC-23379 dated August 5, 1998) that permits Transamerica Premier Funds and its Investment Adviser, TAM, subject to certain conditions, and without the approval of shareholders to:

(1)	employ a new unaffiliated sub-adviser for a fund pursuant to the terms of a new investment sub-advisory agreement, either as a replacement for an existing sub-adviser or as an additional sub-adviser;
(2)	materially change the terms of any sub-advisory agreement; and
(3)	continue the employment of an existing sub-adviser on sub-advisory contract terms where a contract has been assigned because of a change of control of the sub-adviser.

In such circumstances, shareholders would receive notice and information about the new sub-adviser within ninety (90) days after the hiring of any new sub-adviser.

Transamerica Investment Management, LLC is an affiliate of TAM and Transamerica Premier Funds.

Management Fees

For its service to each of the Funds, the Investment Adviser is entitled to receive an advisory fee based on an annual percentage of the Fund’s average daily net assets. It is accrued daily and paid monthly. The fees may be higher than the average advisory fee paid to the investment advisers of other similar funds. The Investment Adviser may waive some or all of its fees from time to time at its discretion.

Management Fees Paid in 2008

For the fiscal year ended December 31, 2008, each Fund paid the following advisory fee as a percentage of the Fund’s average daily net assets, after reimbursement and/or fee waivers (if applicable).

Fund	Percentage
Transamerica Premier Focus Fund	0.80%
Transamerica Premier Equity Fund	0.67%
Transamerica Premier Growth Opportunities Fund	0.80%
Transamerica Premier Diversified Equity Fund	0.58%
Transamerica Premier Balanced Fund	0.58%
Transamerica Premier High Yield Bond Fund	0.06%
Transamerica Premier Cash Reserve Fund	0.01%

A discussion regarding the basis of the Funds’ Board of Directors approval of the Funds’ advisory arrangements is available in the Funds’ annual report for the fiscal year ended December 31, 2008.

Each Fund pays all the costs of its operations that are not assumed by the Investment Adviser, including:

•   custodian

•   legal

•   audit

•   administration

•   registration fees and expenses

•   fees and expenses of directors unaffiliated with the Investment Adviser

Out of its past profits and other available services, the Investment Adviser (or its affiliates) may pay for distribution and for shareholder services with respect to the Funds provided by broker-dealers and other financial intermediaries. These payments are sometimes referred to as “revenue sharing” arrangements. Revenue sharing is not an expense of the Funds.

SUB-ADVISER

TIM is the Sub-Adviser to the Funds. TIM is located at 11111 Santa Monica Blvd., Suite 820, Los Angeles, CA 90025. TIM is controlled

40

Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

by Transamerica Investment Services, Inc. (“TISI”). TISI is a subsidiary of Transamerica Corporation, 600 Montgomery Street, San Francisco, California 94111. Transamerica Corporation is a subsidiary of AEGON NV, an international insurance group.

Sub-Advisory Fees

The Sub-Adviser receives compensation, calculated daily and paid monthly, from TAM, at the following annual rates:

	As a % of Average
Fund	Daily Net Assets
Transamerica Premier Focus Fund	0.85% for the first $1 billion; 0.82% of the next $1 billion and 0.80% of assets in excess of $2 billion
Transamerica Premier Equity Fund	0.85% for the first $1 billion; 0.82% of the next $1 billion and 0.80% of assets in excess of $2 billion
Transamerica Premier Growth Opportunities Fund	0.85% for the first $1 billion; 0.82% of the next $1 billion and 0.80% of assets in excess of $2 billion
Transamerica Premier Diversified Equity Fund	0.75% for the first $1 billion; 0.72% of the next $1 billion and 0.70% of assets in excess of $2 billion
Transamerica Premier Balanced Fund	0.75% for the first $1 billion; 0.72% of the next $1 billion and 0.70 of assets in excess of $2 billion
Transamerica Premier High Yield Bond Fund	0.53%
Transamerica Premier Cash Reserve Fund	0.33%

TO CONTACT TRANSAMERICA PREMIER FUNDS

•  Customer Service:	1-800-892-7587
•  Internet:	www.transamericafunds.com
•  Fax:	1-866-476-0578
Mailing Address:	Transamerica Premier Funds P.O. Box 219427 Kansas City, MO 64121-9427
Overnight Address:	Transamerica Premier Funds 330 West 9th Street Kansas City, MO 64105

OPENING AN ACCOUNT

Transamerica Premier Funds make opening an account, investing in shares and account management as easy and efficient as possible. For your convenience, the Funds also provide a complete range of services to meet your investment and financial transaction needs.

Fill out the New Account Application which is available on our website.

IRAs and other retirement plan accounts require different applications, which you can request by calling Customer Service or by visiting our website.

Note: To help the U.S. government fight the funding of terrorism and money laundering activities, the USA PATRIOT Act requires all financial institutions to obtain, verify, and record information that identifies each person or entity that opens an account. On your application, be sure to include your name, date of birth (if an individual), residential address and Social Security Number or taxpayer identification number. If there are authorized traders on your account, please provide this information for each trader. If you do not provide this information, your account will not be established. If Transamerica Premier Funds cannot verify your identity within 30 days from the date your account is established, your account may be closed based on the next calculated net asset value (“NAV”) per share.

Minimum Investment

	Minimum		Minimum
	Initial		Subsequent
	Investment		Investment
	(per fund		(per fund
Type of Account	account)		account)
Regular Accounts		$1,000		$50
IRAs (Traditional and Roth) and Coverdell ESAs		$250		$50
Uniform Gift to Minors (“UGMA”) or Transfer to Minors (“UTMA”)		$250		$50
Payroll Deduction and Automatic Investment Plans		$50		$50*

* Minimum per monthly fund account investment.

Note: Transamerica Premier Funds reserves the right to change the amount of these minimums from time to time or to waive them in whole or in part. The minimum initial and minimum subsequent investment requirements have been waived for wrap programs at broker-dealer firms having applicable selling and wrap agreements with Transamerica Premier Funds and certain qualified retirement plans, excluding IRAs.

The minimum initial and minimum subsequent investment requirements, will be waived (to the extent applicable) with respect to transactions in an account in the Transamerica Premier Equity Fund maintained by Fidelity Management Trust Company (“FMTC”) on behalf of one or more 401(k) or other retirement plans. Net purchase and/or redemption orders forwarded on behalf of plan participants by FMTC with respect to the account will not be considered to be

41

Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

market timing or disruptive trading for purposes of the Fund’s compliance policies, and FMTC’s market timing and disruptive trading policies (and not those of the Fund) will apply to transactions by plan participants.

The Statement of Additional Information contains additional information.

By Mail

•   Send your completed application and check made payable to Transamerica Fund Services, Inc.

Through an Authorized Dealer

•   The dealer is responsible for opening your account and providing Transamerica Premier Funds with your taxpayer identification number.

Buying Shares

Purchase requests initiated through an automated service that exceed $50,000 per day are not permitted and must be submitted in writing.

By Check

•   Make your check payable and mail to Transamerica Fund Services, Inc.

•   If you are opening a new account, send your completed application along with your check.

•   If you are purchasing shares in an existing account(s), please reference your account number(s) and the Transamerica Premier Fund(s) you wish to invest in. If you do not specify the fund(s) in which you wish to invest, and your referenced account is invested in one fund, your check will be deposited into such fund.

•   Redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply.

•   Transamerica Premier Funds does not accept money orders, traveler’s checks, starter checks, credit card convenience checks or cash. Cashier’s checks and third-party checks may be accepted, subject to approval by Transamerica Premier Funds.

By Automatic Investment Plan

•   With an Automatic Investment Plan (“AIP”), a level dollar amount is invested monthly and payment is deducted electronically from your bank account. Due to your bank’s requirements, please allow up to 30 days for your AIP to begin. Investments may be made between the 3rd and 28th of each month only, and will occur on the 15th if no selection is made. Call Customer Service for information on how to establish an AIP or visit our website to obtain an AIP request form.

By Telephone

•   You may request an electronic transfer of funds from your bank account to your Transamerica Premier Funds account. The electronic bank link option must be established in advance before Automated Clearing House (“ACH”) purchases will be accepted. Call Customer Service or visit our website for information on how to establish an electronic bank link. Due to your bank’s requirements, please allow up to 30 days to establish this option.

Through an Authorized Dealer

•   If your dealer has already established your account for you, no additional documentation is needed. Call your dealer to place your order. Transamerica Premier Funds must receive your payment within three business days after your order is accepted.

By the Internet

•   You may request an electronic transfer of funds from your bank account to your Transamerica Premier Funds account. The electronic bank link option must be established in advance before ACH purchases will be accepted. Call Customer Service or visit our website for information on how to establish an electronic bank link.

By Payroll Deduction

•   You may have money transferred regularly from your payroll to your Transamerica Premier Funds account. Call Customer Service to establish this deduction.

By Wire Transfer

•   You may request that your bank wire funds to your Transamerica Premier Funds account (note that your bank may charge a fee for such service). You must have an existing account to make a payment by wire transfer. Ask your bank to send your payment to:

Bank of America, NA, Charlotte, NC, ABA# 0260-0959-3, DDA# 5486005475. Provide shareholder name, fund and account numbers.

•   Shares will be purchased at the next determined NAV after receipt of your wire if you have supplied all other required information.

Other Information

If your check, draft or electronic transfer is returned unpaid by your bank, you will be charged a fee of $20 for each item that has been returned.

Transamerica Premier Funds reserves the right to terminate your electronic draft privileges if the drafts are returned unpaid by your bank.

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Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

Transamerica Premier Funds or its agents may reject a request for purchase of shares at any time, in whole or in part, including any purchase under the exchange privilege.

SELLING SHARES

Selling shares is also referred to as “redeeming” shares. You can redeem your shares on any day the Funds are open for business.

Proceeds from the redemption of your shares will usually be sent within three business days after receipt in good order of your request for redemption (unless you request to receive payment by wire or another option described below). However, Transamerica Premier Funds has the right to take up to seven days to pay your redemption proceeds, and may postpone payment under certain circumstances, as authorized by law. In cases where shares have recently been purchased and the purchase money is not yet available, redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply. Shares purchased by wire are immediately available and are not subject to the 15 day holding period.

Please note that redemption requests greater than $50,000 per day must be submitted in writing. In addition, amounts greater than $50,000 cannot be sent via ACH (check or federal funds wire only). Additionally, requests totaling more than $100,000 must be in writing with an original signature guarantee by all shareholders.

The electronic bank link option must be established in advance for payments made electronically to your bank such as ACH or expedited wire redemptions. Call Customer Service to verify this feature is in place on your account or to obtain information on how to establish the electronic bank link.

To Request Your Redemption and Receive Payment By:

Direct Deposit – ACH

•   You may request an “ACH redemption” in writing, by phone or by internet access to your account. Payment should usually be received by your bank account 2-4 banking days after your request is received in good order. Transamerica Premier Funds does not charge for this payment option. Certain IRAs and qualified retirement plans may not be eligible via the internet.

Direct Deposit – Wire

•   You may request an expedited wire redemption in writing or by phone. The electronic bank link option must be established in advance. Otherwise, an original signature guarantee will be required. Wire redemptions have a minimum of $1,000 per wire. Payment should be received by your bank account the next banking day after your request is received in good order. Transamerica Premier Funds charges $10 for this service. Your bank may charge a fee as well.

Check to Address of Record

•   Written Request: Send a letter requesting a withdrawal to Transamerica Premier Funds. Specify the fund, account number and dollar amount or number of shares you wish to redeem. Be sure to include all shareholders’ signatures and any additional documents, as well as an original signature guarantee(s) if required. If you are requesting a distribution from an IRA, federal tax withholding of 10% will apply unless you elect otherwise. If you elect to withhold, the minimum tax withholding rate is 10%.

•   Telephone or Internet Request: You may request your redemption by phone or internet. Certain IRAs and qualified retirement plans may not be eligible.

Check to Another Party/Address

•   This request must be in writing, regardless of amount, signed by all account owners, with an original signature guarantee.

Systematic Withdrawal Plan (by Direct Deposit ACH or Check)

•   You can establish a Systematic Withdrawal Plan (“SWP”) either at the time you open your account or at a later date. Call Customer Service for information on how to establish a SWP or visit our website to obtain the appropriate form to complete.

Through an Authorized Dealer

•   You may redeem your shares through an authorized dealer. (They may impose a service charge.) Contact your Registered Representative or call Customer Service for assistance.

Your Request to Sell Your Shares and Receive Payment May Be Subject To:

•   The type of account you have and if there is more than one shareholder.

•   The dollar amount you are requesting; redemptions over $50,000 must be in writing and those redemptions totaling more than $100,000 require a written request with an original signature guarantee for all shareholders on the account.

•   A written request or an original signature guarantee may be required if there have been recent changes made to your account (such as an address change) or other such circumstances. For your protection, if an address change was made in the last 10 days, Transamerica Premier Funds requires a redemption request in writing, signed by all account owners with an original signature guarantee.

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Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

•   When redeeming all shares from an account with an active AIP, your AIP will automatically be stopped. Please contact Customer Service if you wish to re-activate your AIP.

•   Each Fund reserves the right to refuse a telephone redemption request if it is believed it is advisable to do so. The telephone redemption option may be suspended or terminated at any time without advance notice.

•   Redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply.

•   Shares will normally be redeemed for cash, although each Fund retains the right to redeem its shares in kind. Please see the SAI for more details.

•   If you request that a withdrawal check be delivered overnight, a $20 overnight fee will be charged; for Saturday delivery, a $30 overnight fee will be charged.

Please see additional information relating to signature guarantees later in this prospectus.

INVOLUNTARY REDEMPTIONS

Each Fund reserves the right to close your account if the account value falls below the Fund’s minimum account balance, or you are deemed to engage in activities that are illegal (such as late trading) or otherwise believed to be detrimental to the Fund (such as market timing or frequent small redemptions), to the fullest extent permitted by law.

EXCHANGING SHARES

•   You may request an exchange in writing, by phone or by accessing your account through the internet.

•   You can exchange shares in one fund for shares of another fund offered in this prospectus.

•   The minimum exchange to a new fund account is $1,000, unless your account is a UGMA, UTMA, or IRA, in which event it is $250. If you want to exchange between existing fund accounts, the required minimum will be $50.

•   An exchange is treated as a redemption of a fund’s shares, followed by a purchase of the shares of the fund into which you exchanged. Prior to making exchanges into a fund that you do not own, please read the prospectus carefully.

•   If you exchange all your shares to a new fund, any active systematic plan that you maintain with Transamerica Premier Funds will also carry over to this new fund unless otherwise instructed.

•   Transamerica Premier Funds reserves the right to modify or terminate the exchange privilege at any time upon 60 days written notice.

•   Transamerica Premier Funds reserves the right to deny any request involving transactions between classes of shares.

FEATURES AND POLICIES

Market Timing/Excessive Trading

Some investors try to profit from various short-term or frequent trading strategies known as market timing. Examples of market timing include switching money into funds when their share prices are expected to rise and taking money out when their share prices are expected to fall, and switching from one fund to another and then back again after a short period of time. As money is shifted in and out, a fund incurs expenses for buying and selling securities. Excessive purchases, redemptions or exchanges of fund shares disrupt portfolio management, hurt fund performance and drive fund expenses higher. For example, the fund may be forced to liquidate investments as a result of short-term trading and incur increased brokerage costs or realize taxable capital gains without attaining any investment advantage. These costs are borne by all shareholders, including long-term investors who do not generate the costs.

Transamerica Premier Funds’ Board of Directors has approved policies that are designed to discourage market timing or excessive trading, which include limitations on the number of transactions in fund shares, as described in this prospectus. If you intend to engage in such practices, we request that you do not purchase shares of any of the Funds.

Each Fund reserves the right to reject any request to purchase shares, including purchases in connection with an exchange transaction, which the Fund reasonably believes to be in connection with market timing or excessive trading. The Funds generally will consider four or more exchanges between Funds, or frequent purchases and redemptions having a similar effect, during any rolling 90-day period to be evidence of market timing or excessive trading by a shareholder or by accounts under common control (for example, related shareholders, or a financial adviser with discretionary trading authority over multiple accounts). However, the Funds reserve the right to determine less active trading to be “excessive” or related to market timing.

While the Funds discourage market timing and excessive short-term trading, the Funds cannot always recognize or detect such trading, particularly if it is facilitated by financial intermediaries or done through Omnibus Account arrangements. The Funds’ distributor has entered into agreements with intermediaries requiring the intermediaries to provide certain information to help identify harmful trading activity and to prohibit further purchases or exchanges by a shareholder identified as having engaged in excessive trading. There is

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Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

no guarantee that the procedures used by financial intermediaries will be able to curtail frequent, short-term trading activity. For example, shareholders who seek to engage in frequent, short-term trading activity may use a variety of strategies to avoid detection, and the financial intermediaries’ ability to deter such activity may be limited by operational and information systems capabilities. Due to the risk that the Funds and financial intermediaries may not detect all harmful trading activity, it is possible that shareholders may bear the risks associated with such activity.

Orders to purchase, redeem or exchange shares forwarded by certain omnibus accounts with Transamerica Premier Funds will not be considered to be market timing or excessive trading for purposes of Transamerica Premier Funds’ policies. However, the market timing and excessive trading policies of these omnibus firms or plans may apply to transactions by the underlying shareholders.

Checkwriting Service (available for shareholders of Transamerica Premier Cash Reserve Fund only)

If you would like to use the checkwriting service, mark the appropriate box on the application or authorization form. Your Transamerica Premier Cash Reserve Fund account must have a minimum balance of $1,000 to establish checkwriting privileges. The Fund will send you checks when it receives these properly completed documents and your check has cleared the 15 day holding period. Checks must be written for at least $250, and investments made by check or ACH must have been in your account for at least 15 calendar days before you can write checks against them. A service fee of $10 applies for those checks written under $250. When the check is presented for payment, the Fund will redeem a sufficient number of full and fractional shares in your account at that day’s net asset value to cover the amount of the check. Checks presented against your account in an amount that exceeds your available balance will be returned for “insufficient funds,” and your account will incur a $20 service fee. Due to dividends accruing on your account, it is not possible to determine your account’s value in advance, so you should not write a check for the entire value of your account or try to close your account by writing a check. A stop payment on a check may be requested for a $20 service fee. The payment of funds is authorized by the signature(s) appearing on the Transamerica Premier Funds application or authorization form. Each signatory guarantees the genuineness of the other signature(s).

The use of checks is subject to the rules of the Transamerica Premier Funds designated bank for its check writing service. Transamerica Premier Funds has chosen UMB Bank, N.A. as its designated bank for this service. UMB Bank, N.A., or its bank affiliate (the “Bank”), is appointed agent by the person(s) signing the Transamerica Premier Funds application or authorization form (the Investor(s)) and, as agent, is authorized and directed upon presentment of checks to the Bank to transmit such checks to Transamerica Premier Funds as requests to redeem shares registered in the name of the Investor(s) in the amounts of such checks.

This checkwriting service is subject to the applicable terms and restrictions, including charges, set forth in this prospectus. The Investor(s) agrees that he/she is subject to the rules, regulations, and laws governing check collection including the Uniform Commercial Code as enacted in the State of Missouri, pertaining to this checkwriting service, as amended from time to time. The Bank and/or Transamerica Premier Funds has the right not to honor checks presented to it and the right to change, modify or terminate this checkwriting service at any time.

The checkwriting service of Transamerica Premier Cash Reserve Fund is not available for IRAs or qualified retirement plans.

Customer Service

Occasionally, Transamerica Premier Funds experiences high call volume due to unusual market activity or other events that may make it difficult for you to reach a Customer Service Representative by telephone. If you are unable to reach Transamerica Premier Funds by telephone, please consider visiting our website at www.transamericafunds.com. You may also send instructions by mail, by fax, or by using the Premier Quote (automated phone system).

Uncashed Checks Issued on Your Account

If any check Transamerica Premier Funds issues is returned by the Post Office as undeliverable, or remains outstanding (uncashed) for six months, we reserve the right to reinvest check proceeds back into your account at the net asset value next calculated after reinvestment. If applicable, we will also change your account distribution option from cash to reinvest. Interest does not accrue on amounts represented by uncashed checks. In cases where we are unable to reinvest check proceeds in the Fund that you held, for example, if the Fund has been liquidated or is closed to new investments, we reserve the right to reinvest the proceeds in another Transamerica Premier Fund, such as the Transamerica Premier Cash Reserve Fund.

Minimum Dividend Check Amounts

To control costs associated with issuing and administering dividend checks, we reserve the right not to issue checks under a specified amount. For accounts with the cash by check dividend distribution option, if the dividend payment total is less than $10, the distribution will be reinvested into the account and no check will be issued.

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Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

Dividend Payment Schedules:

Fund	When It Pays
Transamerica Premier Focus Fund	Annually
Transamerica Premier Equity Fund	Annually
Transamerica Premier Growth Opportunities Fund	Annually
Transamerica Premier Diversified Equity Fund	Annually
Transamerica Premier Balanced Fund	Annually
Transamerica Premier High Yield Bond Fund	Monthly
Transamerica Premier Cash Reserve Fund	Monthly*

* Accrues daily paid monthly.

Minimum Account Balance

Due to the proportionately higher cost of maintaining customer fund accounts with balances below the stated minimums for each class of shares, Transamerica Premier Funds reserves the right to close such accounts or assess an annual fee on such fund accounts to help offset the costs associated with maintaining the account. Transamerica Premier Funds generally provides a 60-day notification to the address of record prior to assessing a minimum account fee, or closing any account. The following describes the fees assessed against fund accounts with balances below the stated minimum:

Account Balance	Fee Assessment
(per fund account)	(per fund account)
If your balance is below $1,000	$25 fee assessed every year, until balance reaches $1,000

No fees will be charged on:

•   Accounts opened within the preceding 24 months

•   Accounts with an active monthly Automatic Investment Plan or payroll deduction ($50 minimum per fund account)

•   Accounts owned by an individual which, when combined by Social Security Number, have a balance of $5,000 or more

•   Accounts owned by individuals in the same household (by address) that have a combined balance of $5,000 or more

•   UTMA/UGMA accounts (held at Transamerica Premier Funds)

•   State Street Custodial accounts (held at Transamerica Premier Funds)

•   Omnibus and Network Level 3 accounts

•   Accounts for which Transamerica Premier Funds in its discretion has waived the minimum account balance requirement

Telephone Transactions

Transamerica Premier Funds and its transfer agent, Transamerica Fund Services, Inc. (“TFS”) are not liable for complying with telephone instructions that are deemed by them to be genuine. Transamerica Premier Funds and TFS will employ reasonable procedures to help ensure telephone instructions are genuine. In situations where Transamerica Premier Funds or TFS reasonably believe they were acting on genuine telephone instructions, you bear the risk of loss. These procedures may include requiring personal identification, providing written confirmation of transactions and tape recording conversations. Transamerica Premier Funds reserves the right to modify the telephone redemption privilege at any time.

Retirement and ESA State Street Account Maintenance Fees

Retirement plan and Coverdell ESA State Street accounts are subject to an annual custodial fee of $15 per fund account, with a maximum fee of $30 per Social Security Number. For example, an IRA in two fund accounts would normally be subject to a $30 annual custodial fee. The fee is waived if the total of the retirement plan and ESA account(s)’s value per Social Security Number is more than $50,000.

Professional Fees

Your financial professional may charge a fee for his or her services. This fee will be in addition to any fees charged by Transamerica Premier Funds. Your financial professional will answer any questions that you may have regarding such fees.

Signature Guarantee

An original signature guarantee assures that a signature is genuine so that you are protected from unauthorized account transactions. Notarization is not an acceptable substitute. Acceptable guarantors only include participants in the Securities Transfer Agents Medallion Program (“STAMP2000”). Participants in STAMP2000 may include financial institutions such as banks, savings and loan associations, trust companies, credit unions, broker-dealers and member firms of a national securities exchange.

An original signature guarantee is required if any of the following is applicable:

•   You request a redemption or distribution transaction totaling more than $100,000 or, in the case of an IRA with a market value in excess of $100,000, you request a custodian to custodian transfer.

•   You would like a check made payable to anyone other than the shareholder(s) of record.

•   You would like a check mailed to an address which has been changed within 10 days of the redemption request.

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Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

•   You would like a check mailed to an address other than the address of record.

•   You would like your redemption proceeds wired to a bank account other than a bank account of record.

•   You are adding or removing a shareholder from an account.

•   You are changing ownership of an account.

•   When establishing an electronic bank link, if the Transamerica Premier Funds account holder’s name does not appear on the check.

The Funds reserve the right to require an original signature guarantee under other circumstances or to reject or delay a redemption on certain legal grounds.

An original signature guarantee may be refused if any of the following is applicable:

•   It does not appear valid or in good form.

•   The transaction amount exceeds the surety bond limit of an original signature guarantee.

•   The guarantee stamp has been reported as stolen, missing or counterfeit.

Employer-Sponsored Accounts

If you participate in an employer-sponsored plan and wish to make an allocation change to your current fund selection, you or your financial professional must notify Transamerica Premier Funds by phone or in writing. Please also remember to inform your employer of the change(s) to your fund allocation. Documentation for allocations submitted online or in writing from your employer will be used to allocate your contributions. This documentation will supersede all other prior instructions received from you or your financial professional. (Note: If you perform a partial or complete exchange to a new fund selection, your current fund allocation will remain unchanged for future contributions unless specified otherwise.)

E-mail Communications

As e-mail communications may not be secure, and because we are unable to take reasonable precautions to verify your shareholder and transaction information, we cannot respond to account-specific requests received via email. For your protection, we ask that all transaction requests be submitted only via telephone, mail or through the secure link on our website.

Statements and Reports

Transamerica Premier Funds will send you a confirmation statement after every transaction that affects your account balance or registration, with the exception of systematic transactions or transactions necessary to assess account fees. Systematic transactions and fees will be shown on your next regularly scheduled quarterly statement. Information regarding these fees is disclosed in this prospectus. Please review the confirmation statement carefully and promptly notify Transamerica Premier Funds of any error. Information about the tax status of income dividends and capital gains distributions will be mailed to shareholders early each year.

Please retain your statements. If you require historical statements, Transamerica Premier Funds may charge $10 per statement year up to a maximum of $50 per Social Security Number. Financial reports for the Funds, which include a list of the holdings, will be mailed twice a year to all shareholders.

PRICING OF SHARES

How Share Price Is Determined

The price at which shares are purchased or redeemed is the NAV that is next calculated following receipt and acceptance of a purchase order in good order or receipt of a redemption order in good order by Transamerica Premier Funds or an authorized intermediary.

When Share Price Is Determined

The NAV of the Funds is determined on each day the New York Stock Exchange (“NYSE”) is open for business. The NAV is not determined on days when the NYSE is closed (generally New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas). Foreign securities may trade in their primary markets on weekends or other days when a Fund does not price its shares (therefore, the NAV of a Fund holding foreign securities may change on days when shareholders will not be able to buy or sell shares of the Funds).

Purchase orders received in good order and accepted, and redemption orders received in good order, before the close of business on the NYSE, usually 4:00 p.m. Eastern Time, receive the NAV determined as of the close of the NYSE that day. Purchase and redemption requests received after the NYSE is closed receive the NAV at the close of the NYSE the next day the NYSE is open. Purchase and redemption requests by telephone are deemed received when the telephone call is received.

How NAV is Calculated

The NAV of each Fund is calculated by taking the value of its net assets and dividing by the number of shares of the Fund that are then outstanding.

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Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

The Board of Directors has approved procedures to be used to value the Funds’ securities for the purposes of determining the Fund’s NAV. The valuation of securities of the Funds is determined in good faith by or under the direction of the Board. The Board has delegated certain valuation functions for the Funds to TAM.

In general, securities and other investments are valued based on market prices at the close of regular trading on the NYSE. Fund securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-dominated foreign securities or ADRs, are valued at the closing price on the exchange or system where the security is principally traded. With respect to securities traded on the NASDAQ/NMS, such closing price may be the last reported sale price or the NASDAQ Official Closing Price (“NOCP”). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value should be determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales for that day on any exchange or system, a security is valued at the closing bid quotes on the exchange or system where the security is principally traded, or at the NOCP, if applicable. Foreign securities traded on U.S. exchanges are generally priced using last sale price regardless of trading activity. Securities traded over-the-counter are valued at the mean of the last bid and asked prices. The market price for debt obligations and certain derivative securities is generally the price supplied by an independent third party pricing service, which may use market prices or quotations or a variety of fair value techniques and methodologies. Short-term debt obligations that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. The prices that the Fund uses may differ from the amounts that would be realized if the investments were sold and the differences could be significant, particularly for securities that trade in relatively thin markets and/or markets that experience extreme volatility. Foreign securities generally are valued based on quotations from the primary market in which they are traded, and are converted from the local currency into U.S. dollars using current exchange rates. Market quotations for securities prices may be obtained from automated pricing services. Shares of open-end investment companies are generally valued at the net asset value per share reported by that investment company.

When market quotations are not readily available (which may include closing prices deemed to be unreliable because of the occurrence of a subsequent event), a valuation committee appointed by the Board of Directors may, in good faith, establish a value for the security in accordance with fair valuation procedures adopted by the Board of Directors. The types of securities for which such fair value pricing may be required include, but are not limited to: foreign securities, where a significant event occurs after the close of the foreign market on which such security principally trades, but before the close of the NYSE, that is likely to have changed the value of such security; securities for which the closing value is deemed unreliable; securities of an issuer that has entered into a restructuring; securities whose trading has been halted or suspended; fixed-income securities that have gone into default or for which there is no current market value quotation; and securities that are restricted as to transfer or resale. The Funds use a fair value model developed by an independent third party pricing service to price foreign equity securities on days when there is a certain percentage change in the value of a domestic equity security index, as such percentage may be determined by TAM from time to time.

Valuing securities in accordance with fair value procedures involves greater reliance on judgment than valuing securities based on readily available market quotations. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service. There can be no assurance that the Funds could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the Funds determine its NAV.

DISTRIBUTION OF SHARES

Distribution Plans

Shares are available on a no-load basis directly to individuals, companies, retirement programs and other investors from Transamerica Capital, Inc. (“TCI”), the Distributor, 4600 Syracuse Street, Suite 1100, Denver, Colorado 80237.

Each Fund makes payments to TCI according to a plan adopted to meet the requirements of Rule 12b-1 under the Investment Company Act of 1940. The 12b-1 fees paid by each Fund’s shares are used to pay distribution and service fees for the sale and distribution of the Fund’s shares and to pay for non-distribution activities and services provided to shareholders. These services include compensation to financial intermediaries that sell fund shares and/or service shareholder accounts. The annual 12b-1 fee is 0.25% of the average daily net assets of each Fund, except the Transamerica Premier Cash Reserve Fund. These fees accrue daily and are based on an annual percentage of the daily average net assets.

Because these fees are paid out of each Fund’s assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost you more than paying other types of sales charges. In case a Fund is closed to new investors or investments, distribution fees may still be paid under the 12b-1 Plan to compensate for past distribution efforts and ongoing services rendered to shareholders.

From time to time, and for one or more Funds, the Distributor may waive all or any portion of these fees at its discretion. The fee for the Transamerica Premier Cash Reserve Fund is currently being waived

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Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

until at least April 30, 2010. The Distributor may terminate this waiver at any time after April 30, 2010.

UNDERWRITING AGREEMENT

Transamerica Premier Funds has an Underwriting Agreement with TCI. TCI is an affiliate of Transamerica Investment Management, LLC, TAM and Transamerica Premier Funds. Under this agreement, TCI underwrites and distributes all classes of Fund shares and bears the expenses of offering these shares to the public. The Funds pay TCI, or its agent, fees for its services. Of the distribution and service fees it receives for Investor Class shares, TCI, or its agent, reallows or pays to brokers or dealers who sold them 0.25% of the average daily net assets of those shares.

DISTRIBUTIONS AND TAXES

Taxes on Distributions in General

Each Fund will distribute all or substantially all of its net investment income and net capital gains to its shareholders each year. Although a Fund will not have to pay income tax on amounts it distributes to shareholders, shareholders that are not generally tax-exempt will be taxed on amounts they receive. Shareholders who are not subject to tax on their income, such as qualified retirement accounts and other tax-exempt investors, generally will not be required to pay any tax on distributions. If a Fund declares a dividend in October, November, or December, payable to shareholders of record in such a month, and pays it in January of the following year, shareholders will be taxed on the dividend as if they received it in the year in which it was declared. Transamerica Premier Cash Reserve Fund pays its dividend distributions monthly.

You normally will be taxed on distributions you receive from a Fund, regardless of whether they are paid to you in cash or are reinvested in additional Fund shares.

The following are guidelines for how certain distributions by the Funds are generally taxed to individual taxpayers under current federal income tax law:

•   Distributions of net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) will be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets).

•   Distributions designated by a Fund as “qualified dividend income” will also be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets). Qualified dividend income generally is income derived from certain dividends from U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, certain dividends that a Fund receives in respect of stock of certain foreign corporations will be qualified dividend income if that stock is readily tradable on an established U.S. securities market. Note that a shareholder (and the Fund in which the shareholder invests) will have to satisfy certain holding period requirements in order to obtain the benefit of the lower tax rate applicable to qualified dividend income.

•   Other distributions generally will be taxed at the ordinary income tax rate applicable to the shareholder.

A portion of the dividends received from a Fund (but none of the Fund’s capital gain distributions) may qualify for the dividends-received deduction for corporate shareholders.

Each Fund in which you invest will send you a tax report annually summarizing the amount of and the tax aspects of your distributions.

If you buy shares of any Fund other than Transamerica Premier Cash Reserve Fund shortly before the Fund in which you invest makes a distribution, the distribution may be taxable to you even though it may actually be a return of a portion of your investment. This is known as “buying a dividend.”

Investors who invest through tax-deferred accounts, such as IRAs, 403(b) accounts, and qualified retirement plans, will ordinarily not be subject to tax until a distribution is made from the account, at which time such distribution is generally taxed as ordinary income. These accounts are subject to complex tax rules and all tax-deferred account investors should consult their tax advisers regarding their investments in a tax-deferred account.

You must provide your taxpayer identification number to a Fund along with certifications required by the Internal Revenue Service upon your investment in that Fund’s shares.

Taxes on the Sale or Exchange of Shares

If you sell shares of a Fund or exchange them for shares of another fund, you generally will have a capital gain or loss, which generally will be a long-term capital gain or loss if you held the shares for more than one year; otherwise it will be a short-term capital gain or loss. Any loss recognized on shares held for six months or less will be treated as long-term capital loss to the extent of any amounts treated as distributions of long-term capital gain that were received with respect to the shares.

Any gain or loss on the sale or exchange of shares is computed by subtracting your tax basis in the shares from the redemption proceeds in the case of a sale or the value of the shares received in the case of an exchange. Because your tax basis depends on the original purchase price and on the price at which any dividends may have been reinvested, you should be sure to keep account statements so that you or your tax preparer will be able to determine whether a sale will result in a taxable gain or loss.

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Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

Note that money market funds typically maintain a stable net asset value of $1.00 per share. Assuming that is the case during the period when you own shares of Transamerica Premier Cash Reserve Fund, then you will typically not recognize gain or loss upon the sale, redemption, or exchange of shares of that Fund.

Withholding Taxes

The Funds may be required to apply backup withholding of U.S. federal income tax at the fourth lowest tax rate applicable to unmarried individuals (currently 28%) on all distributions and (except for Transamerica Premier Cash Reserve Fund) redemption proceeds payable to you if you fail to provide the Fund with your correct taxpayer identification number or to make required certifications, or if you have been notified by the IRS that you are subject to backup withholding. Backup withholding is not an additional tax, but is a method by which the IRS ensures that it will collect taxes otherwise due. Any amounts withheld may be credited against your U.S. federal income tax liability.

Non-Resident Alien Withholding

If you are a non-U.S. investor, you must provide a U.S. mailing address to establish an account unless you have a broker-dealer firm that submits your account through the National Securities Clearing Corporation, in which your broker-dealer will be required to submit a Foreign Certification Form. Investors changing a mailing address to a non-U.S. address will be required to have a Foreign Certification Form completed and returned to us if they have a broker-dealer before future purchases can be accepted. Shareholders that are not U.S. investors under the federal tax laws may be subject to U.S. withholding on certain distributions and are generally subject to U.S. tax certification requirements. Additionally, you will need to provide the appropriate tax form (generally, Form W-8BEN) and documentary evidence if you are not a U.S. resident alien.

Other Tax Information

This tax discussion is for general information only. In addition to federal income taxes, you may be subject to state, local or foreign taxes on payments received from, and investments made in shares of, a Transamerica Premier Fund. More information is provided in the SAI of the Funds. You should also consult your own tax adviser for information regarding all tax consequences applicable to your investments in Transamerica Premier Funds.

INVESTMENT POLICY CHANGES

Transamerica Premier Equity Fund, Transamerica Premier Growth Opportunities Fund, Transamerica Premier Diversified Equity Fund and Transamerica Premier High Yield Bond Fund, as part of each Fund’s investment policy, invest at least 80% of its assets (defined as net assets plus the amount of any borrowings for investment purposes) in certain securities as indicated in this prospectus. Shareholders will be provided with at least 60 days’ prior written notice of any changes in the 80% investment policy. Such notice will comply with the conditions set forth in any applicable SEC rules then in effect.

To the extent authorized by law, Transamerica Premier Funds and each of the Funds reserve the right to discontinue offering shares at any time, to merge a class of shares, or to cease operations entirely.

SUMMARY OF BOND RATINGS

Following is a summary of the grade indicators used by two of the most prominent, independent rating agencies (Moody’s Investors Service, Inc. and Standard & Poor’s Corporation) to rate the quality of bonds. The first four categories are generally considered investment quality bonds. Those below that level are of lower quality, commonly referred to as “junk bonds.”

			Standard
Investment Grade	Moody’s		& Poor’s
Highest quality		Aaa		AAA
High quality		Aa		AA
Upper medium		A		A
Medium, speculative features		Baa		BBB
Lower Quality
Moderately speculative		Ba		BB
Speculative		B		B
Very speculative		Caa		CCC
Very high risk		Ca		CC
Highest risk, may not be paying interest		C		C
In arrears or default		C		D

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Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand a Fund’s performance for the past five years. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in a Fund (assuming reinvestment of all distributions). This information through the period ended December 31, 2008 has been derived from financial statements audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Transamerica Premier Funds’ 2008 Annual Report which is available by request by calling 1-800-892-7587.

The following table includes selected data for a share outstanding throughout each period and other performance information derived from the financial statements.

	Transamerica Premier Focus Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	23.64		$	19.65		$	18.59		$	16.01		$	13.87
Operations
Net investment loss(a)		(0.10	)		(0.11	)		(0.11	)		(0.06	)		(0.07	)
Net realized and unrealized gain (loss) on investments		(9.65	)		4.11			1.17			2.64			2.21
Total from investment operations		(9.75	)		4.00			1.06			2.58			2.14
Dividends/Distributions and Other to Shareholders
Net realized gains on investments		(0.61	)		(0.01	)		—			—			—
Total dividends/distributions		(0.61	)		(0.01	)		—			—			—
Net Asset Value
End of year	$	13.28		$	23.64		$	19.65		$	18.59		$	16.01
Total Return(c)		(41.19%	)		20.35%			5.70%			16.12%			15.43%
Ratio and Supplemental Data
Expenses to average net assets:		1.37%			1.18%			1.20%			1.32%			1.36%
Net investment loss, after reimbursement/fee waiver		(0.52%	)		(0.50%	)		(0.61%	)		(0.38%	)		(0.48%	)
Portfolio turnover rate		66%			51%			46%			67%			64%
Net assets end of year (in thousands)	$	50,834		$	95,372		$	87,200		$	111,705		$	92,565

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Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

FINANCIAL HIGHLIGHTS (Continued)

The following tables includes selected data for a share outstanding throughout each period and other performance information derived from the financial statements.

	Transamerica Premier Equity Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	25.60		$	22.52		$	22.05		$	19.46		$	16.90
Operations
Net investment income (loss)(a)		0.06			(0.03	)		(0.07	)		(0.08	)		(0.02	)
Net realized and unrealized gain (loss) on investments		(11.52	)		3.45			1.74			3.19			2.58
Total from investment operations		(11.46	)		3.42			1.67			3.11			2.56
Dividends/Distributions and Other to Shareholders
Net investment income		(0.05	)		—			—			—			—
Net realized gains on investments		(0.19	)		(0.34	)		(1.20	)		(0.52	)		—
Total dividends/distributions		(0.24	)		(0.34	)		(1.20	)		(0.52	)		—
Net Asset Value
End of year	$	13.90		$	25.60		$	22.52		$	22.05		$	19.46
Total Return(c)		(44.74%	)		15.19%			7.54%			15.96%			15.15%
Ratio and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver		1.15%			1.15%			1.15%			1.09%			1.29%
Before reimbursement/fee waiver		1.30%			1.15%			1.15%			1.09%			1.29%
Net investment income (loss), after reimbursement/fee waiver		0.29%			(0.14%	)		(0.28%	)		(0.38%	)		(0.13%	)
Portfolio turnover rate		47%			40%			37%			32%			34%
Net assets end of year (in thousands)	$	507,636		$	1,046,412		$	570,680		$	423,181		$	179,454

	Transamerica Premier Growth Opportunities Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	27.61		$	23.50		$	22.56		$	19.73		$	16.99
Operations
Net investment loss(a)		(0.11	)		(0.14	)		(0.10	)		(0.05	)		(0.08	)
Net realized and unrealized (loss) on investments		(11.17	)		5.56			1.04			2.88			2.82
Total from investment operations		(11.28	)		5.42			0.94			2.83			2.74
Dividends/Distributions and Other to Shareholders
Net realized gains on investments		—			(1.31	)		—			—			—
Total dividends/distributions		—			(1.31	)		—			—			—
Net Asset Value
End of year	$	16.33		$	27.61		$	23.50		$	22.56		$	19.73
Total Return(c)		(40.85%	)		23.01%			4.17%			14.36%			16.13%
Ratio and Supplemental Data
Expenses to average net assets:		1.38%			1.17%			1.17%			1.31%			1.36%
Net investment loss, after reimbursement/fee waiver		(0.50%	)		(0.52%	)		(0.43%	)		(0.24%	)		(0.44%	)
Portfolio turnover rate		56%			77%			64%			52%			37%
Net assets end of year (in thousands)	$	78,056		$	146,851		$	131,991		$	152,064		$	118,442

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Transamerica Premier Funds Prospectus – Investor Class Shares

Shareholder Information

FINANCIAL HIGHLIGHTS (Continued)

The following tables includes selected data for a share outstanding throughout each period and other performance information derived from the financial statements.

	Transamerica Premier Diversified Equity Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	17.15		$	14.84		$	13.69		$	12.70		$	11.17
Operations
Net investment income(a)		0.05			0.01			0.01			0.02			0.03
Net realized and unrealized gain (loss) on investments		(7.08	)		2.77			1.28			0.99			1.51
Total from investment operations		(7.03	)		2.78			1.29			1.01			1.54
Dividends/Distributions and Other to Shareholders
Net investment income		(0.02	)		—	(b)		—			(0.02	)		(0.01	)
Net realized gains on investments		(0.28	)		(0.47	)		(0.14	)		—			—
Total dividends/distributions		(0.30	)		(0.47	)		(0.14	)		(0.02	)		(0.01	)
Net Asset Value
End of year	$	9.82		$	17.15		$	14.84		$	13.69		$	12.70
Total Return(c)		(40.93%	)		18.68%			9.42%			7.93%			13.81%
Ratio and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver		1.15%			1.15%			1.15%			1.10%			1.20%
Before reimbursement/fee waiver		1.29%			1.15%			1.15%			1.31%			1.47%
Net investment income, after reimbursement/fee waiver		0.35%			0.08%			0.04%			0.13%			0.28%
Portfolio turnover rate		44%			29%			36%			35%			30%
Net assets end of year (in thousands)	$	194,445		$	305,343		$	207,607		$	148,927		$	71,487

	Transamerica Premier Balanced Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	27.14		$	25.24		$	23.63		$	22.60		$	20.22
Operations
Net investment income (loss)(a)		0.39			0.33			0.25			0.26			(0.22	)
Net realized and unrealized gain (loss) on investments		(9.43	)		2.97			1.69			1.04			2.83
Total from investment operations		(9.04	)		3.30			1.94			1.30			2.61
Dividends/Distributions and Other to Shareholders
Net investment income		(0.39	)		(0.38	)		(0.19	)		(0.27	)		(0.23	)
Return of capital		(0.03	)		—			—			—			—
Net realized gains on investments		(0.67	)		(1.02	)		(0.14	)		—			—
Total dividends/distributions		(1.09	)		(1.40	)		(0.33	)		(0.27	)		(0.23	)
Net Asset Value
End of year	$	17.01		$	27.14		$	25.24		$	23.63		$	22.60
Total Return(c)		(33.27%	)		13.04%			8.20%			5.81%			12.92%
Ratio and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver		1.10%			1.10%			1.10%			1.08%			1.29%
Before reimbursement/fee waiver		1.24%			1.10%			1.10%			1.14%			1.29%
Net investment income (loss), after reimbursement/fee waiver		1.68%			1.21%			1.02%			1.14%			(1.04%	)
Portfolio turnover rate		69%			58%			45%			53%			47%
Net assets end of year (in thousands)	$	279,515		$	475,238		$	376,686		$	305,892		$	245,138

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Shareholder Information

FINANCIAL HIGHLIGHTS (Continued)

The following tables includes selected data for a share outstanding throughout each period and other performance information derived from the financial statements.

	Transamerica Premier High Yield Bond Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	7.36		$	7.86		$	7.71		$	8.00		$	7.76
Operations
Net investment income(a)		0.57			0.55			0.53			0.50			0.52
Net realized and unrealized gain (loss) on investments		(2.32	)		(0.50	)		0.14			(0.28	)		0.25
Total from investment operations		(1.75	)		0.05			0.67			0.22			0.77
Dividends / Distributions and Other to Shareholders
Net investment income		(0.58	)		(0.55	)		(0.52	)		(0.51	)		(0.53	)
Total dividends/distributions		(0.58	)		(0.55	)		(0.52	)		(0.51	)		(0.53	)
Net Asset Value
End of year	$	5.03		$	7.36		$	7.86		$	7.71		$	8.00
Total Return(c)		(25.19%	)		0.59%			9.01%			2.93%			10.38%
Ratio and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver		0.90%			0.90%			0.90%			0.90%			0.90%
Before reimbursement/fee waiver		1.37%			1.32%			1.19%			1.34%			1.43%
Net investment income, after reimbursement/fee waiver		8.36%			7.04%			6.81%			6.46%			6.75%
Portfolio turnover rate		82%			89%			127%			93%			152%
Net assets end of year (in thousands)	$	6,087		$	8,209		$	16,418		$	12,062		$	8,227

	Transamerica Premier Cash Reserve Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Operations
Net investment income(a)		0.03			0.05			0.05			0.03			0.01
Total from investment operations		0.03			0.05			0.05			0.03			0.01
Dividends / Distributions and Other to Shareholders
Net investment income		(0.03	)		(0.05	)		(0.05	)		(0.03	)		(0.01	)
Total dividends/distributions		(0.03	)		(0.05	)		(0.05	)		(0.03	)		(0.01	)
Net Asset Value
End of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return(c)		2.57%			5.12%			4.91%			3.06%			1.16%
Ratio and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver		0.26%	(d)		0.25%			0.25%			0.25%			0.25%
Before reimbursement/fee waiver		0.58%	(d)		0.60%			0.68%			0.74%			0.63%
Net investment income, after reimbursement/fee waiver		2.58%			5.01%			4.87%			3.02%			1.13%
Net assets end of year (in thousands)	$	69,585		$	89,417		$	72,834		$	39,405		$	37,038

 ^(a)Calculation based on the average number of shares outstanding during the period.

 ^(b)Rounds to less than $(0.01) per share.

 ^(c)Total Return represents aggregate total return for each period.

 ^(d)Inclusive of Money Market Guarantee Expense. The impact of the Money Market Guarantee Expense is 0.01%.

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Transamerica Premier Funds Prospectus – Investor Class Shares

Appendix A

More on Strategies and Risks

HOW TO USE THIS SECTION

Descriptions of the principal strategies and risks are provided earlier in this prospectus. Referrals are made to this Appendix for more complete information associated with investing in the Funds. For best understanding, first read the description of the Fund in which you are interested. Then refer to this section to read about the risks particular to that Fund. For additional discussions of strategies and risks, please refer to the SAI, which is available upon request. See the back cover of this prospectus for information on how to order the SAI.

DIVERSIFICATION

The Investment Company Act of 1940 (“1940 Act”) classifies investment companies as either diversified or non-diversified. Diversification is the practice of spreading a fund’s assets over a number of issuers to reduce risk. A non-diversified fund has the ability to take larger positions in fewer issuers. Because the appreciation or depreciation of a single security may have a greater impact on the net asset value of a non-diversified fund, its share price can be expected to fluctuate more than a diversified fund.

All of the Funds, except Transamerica Premier Focus Fund, qualify as diversified funds under the 1940 Act.

WHAT IS A NON-DIVERSIFIED FUND?

A “non-diversified” fund has the ability to take larger positions in a smaller number of issuers. To the extent a fund invests a greater portion of its assets in the securities of a smaller number of issuers, it may be more susceptible to any single economic, political or regulatory occurrence than a diversified fund and may be subject to greater loss with respect to its portfolio securities.

Because a fund may invest a relatively large percentage of its assets in a single issuer, a Fund’s performance may be particularly sensitive to change in the value of securities of these issuers.

WHAT IS “BOTTOM-UP” ANALYSIS?

When the investment adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors. It seeks to identify individual companies with earnings growth potential that may not be recognized by the market at large.

INVESTING IN COMMON STOCKS

Stocks may be volatile — their prices may go up and down dramatically over the shorter term. Many factors cause common stocks to go up and down in price. A major factor is the financial performance of the company that issues the stock. Other factors include the overall economy, conditions in a particular industry, and monetary factors like interest rates. Because the stocks a Fund may hold fluctuate in price, the value of a fund’s investment will go up or down.

INVESTING IN PREFERRED STOCKS

Preferred stock represents an interest in a company that generally entitles the holder to receive, in preference to the holders of the company’s common stock, dividends and a fixed share of the proceeds resulting from any liquidation of the company. Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of a company’s debt securities. Preferred stocks may pay fixed or adjustable rates of return. The value of preferred stock may be subject to factors that affect fixed income and equity securities, including changes in interest rates and in a company’s creditworthiness. Shareholders of preferred stock may suffer a loss of value if dividends are not paid. Preferred stock does not generally carry voting rights.

INVESTING IN BONDS

Like common stocks, bonds fluctuate in value, though the factors causing this are different, including:

Changes in Interest Rates. Bond prices tend to move the opposite of interest rates. Why? Because when interest rates on new bond issues go up, rates on existing bonds stay the same and they become less desirable. When rates go down, the reverse happens. This is also true for most preferred stocks and some convertible securities.

Length of Time to Maturity. When a bond matures, the issuer must pay the owner its face value. If the maturity date is a long way off, many things can affect its value, so a bond is more volatile the farther it is from maturity. As that date approaches, fluctuations usually become smaller and the price gets closer to face value.

Defaults. Bond issuers make at least two promises: (1) to pay interest during the bond’s term and (2) to return principal when it matures. If an issuer fails to keep one or both of these promises, the bond will probably drop in price dramatically, and may even become worthless.

Declines in Ratings. At the time of issue, most bonds are rated by professional rating services, such as Moody’s Investors Service (“Moody’s”) and Standard & Poor’s Rating Group (“S&P”). The stronger the financial backing behind the bond, the higher the rating. If this backing is weakened or lost, the rating service may downgrade the bond’s rating. This is virtually certain to cause the bond to drop in price.

Lack of Rating. Some bonds are considered speculative, or for other reasons are not rated. Such bonds must pay a higher interest rate in

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Transamerica Premier Funds Prospectus – Investor Class Shares

order to attract investors. They’re considered riskier because of the higher possibility of default or loss of liquidity.

Low Quality. High-yield/high-risk securities (commonly known as “junk bonds”) have greater credit risk, are more sensitive to interest rate movements, are considered more speculative, have a greater vulnerability to economic changes, subject to greater price volatility; and are less liquid than higher quality debt securities because their issuers may be less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for higher quality debt securities. As a result, a Fund’s Sub-Adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

Loss of Liquidity. If a bond is downgraded, or for other reasons drops in price, or if the bond is a type of investment that falls out of favor with investors, the market demand for it may “dry up.” In that case, the bond may be hard to sell or “liquidate” (convert to cash). Please see Appendix A of the SAI for a description of corporate bond ratings.

VOLATILITY

The more an investment goes up and down in price, the more volatile it is said to be. Volatility increases the market risk because even though your fund may go up more than the market in good times, it may also go down more than the market in bad times. If you decide to sell when a volatile fund is down, you could lose more. Price changes may be temporary and for extended periods.

GROWTH INVESTING

Securities with different characteristics tend to shift in and out of favor depending upon market and economic conditions as well as investor sentiment. A fund may underperform other funds that employ a different style. Growth stocks may be more volatile than other stocks because they are more sensitive to investor perceptions of the issuing company’s growth potential. Growth-oriented funds typically will underperform when value investing is in favor.

INVESTING IN SMALL- AND MID-CAPITALIZATION COMPANIES

Investment in small- and mid-capitalization companies, particularly developing companies, involves a substantial risk of loss. Small- and mid-cap companies and the market for their equity securities are more likely to be more sensitive to changes in earnings results and investor expectations. These companies are also likely to have more limited product lines, capital resources and management depth than larger companies.

TEMPORARY DEFENSIVE STRATEGIES

For temporary defensive purposes, a Fund may, at times, choose to hold some portion of its net assets in cash, or to invest that cash in a variety of debt securities. This may be done as a defensive measure at times when desirable risk/reward characteristics are not available in stocks or to earn income from otherwise uninvested cash. When a Fund increases its cash or debt investment position, its income may increase while its ability to participate in stock market advances or declines decreases. Furthermore, when a Fund assumes a temporary defensive position it may not be able to achieve its investment objective.

INVESTMENT STYLE RISK

Different investment styles tend to shift in and out of favor depending upon market and economic conditions as well as investor sentiment. The Fund may outperform or underperform other funds that employ a different investment style. The Fund may also employ a combination of styles that impact its risk characteristics. Examples of different investment styles include growth and value investing. Growth stocks may be more volatile than other stocks because they are more sensitive to investor perceptions of the issuing company’s growth of earnings potential. Also, since growth companies usually invest a high portion of earnings in their business, growth stocks may lack the dividends of value stocks that can cushion stock prices in a falling market. Growth oriented funds will typically underperform when value investing is in favor.

INVESTING IN FOREIGN SECURITIES

Foreign securities are investments offered by non-U.S. companies, governments and government agencies. They involve risks in addition to those associated with securities of domestic issuers, including:

Changes In Currency Values. Foreign securities may be sold in currencies other than U.S. dollars. If a currency’s value drops relative to the dollar, the value of your fund shares could drop too. Also, dividend and interest payments may be lower. Factors affecting exchange rates include, without limitation: differing interest rates among countries; balances of trade; amount of a country’s overseas investments; and intervention by banks. Some funds also invest in American Depositary Receipts (“ADRs”) and American Depositary Shares (“ADSs”). They represent securities of foreign companies traded on U.S. exchanges, and their values are expressed in U.S. dollars. Changes in the value of the underlying foreign currency will change the value of the ADR or ADS. The fund may incur costs when it converts other currencies into dollars, and vice-versa.

Currency Speculation. The foreign currency market is largely unregulated and subject to speculation. A fund’s investments in

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Transamerica Premier Funds Prospectus – Investor Class Shares

foreign currency-denominated securities may reduce the returns of the fund.

Different Accounting and Reporting Practices. Foreign tax laws are different, as are laws, practices and standards for accounting, auditing and reporting data to investors.

Less Information Available To The Public. Foreign companies usually make far less information available to the public.

Less Regulation. Securities regulations in many foreign countries are more lax than in the U.S. In addition, regulation of banks and capital markets can be weak.

More Complex Negotiations. Because of differing business and legal procedures, a fund might find it hard to enforce obligations or negotiate favorable brokerage commission rates.

Less Liquidity/More Volatility. Some foreign securities are harder to convert to cash than U.S. securities, and their prices may fluctuate more dramatically.

Settlement Delays. “Settlement” is the process of completing payment and delivery of a securities transaction. In many countries, this process takes longer than it does in the U.S.

Higher Custodial Charges. Fees charged by the Fund’s custodian for holding shares are higher for foreign securities than those of domestic securities.

Vulnerability To Seizure And Taxes. Some governments can seize assets. They may also limit movement of assets from the country. Fund interest, dividends and capital gains may be subject to foreign withholding taxes.

Political Instability And Small Markets. Developing countries can be politically unstable. Economies can be dominated by a few industries, and markets may trade a small number of securities.

Different Market Trading Days. Foreign markets may not be open for trading the same days as U.S. markets are open, and asset values can change before your transaction occurs.

Currency Hedging. A Fund may enter into forward currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting a Fund’s currency exposure from one currency to another removes the Fund’s opportunity to profit from the original currency and involves a risk of increased losses for the Fund if the sub-adviser’s projection of future exchange rates is inaccurate.

Emerging Markets Risk. Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign exposure risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries typically are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. In addition, a Fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing.

INVESTING IN DERIVATIVES

Certain of the Funds use derivative instruments as part of their investment strategy. Generally, derivatives are financial contracts whose value depends upon, or is derived from, the value of an underlying asset, reference rate or index, and may relate to stocks, bonds, interest rates, currencies or currency exchange rates, commodities, and related indexes. Examples of derivative instruments include option contracts, futures contracts, options on futures contracts and swap agreements (including, but not limited to, credit default swaps). There is no assurance that the use of any derivatives strategy will succeed. Also, investing in financial contracts such as options involve additional risks and costs, such as inaccurate market predictions which may result in losses instead of gains, and prices may not match so the benefits of the transaction might be diminished and a Fund may incur substantial losses.

A Fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other more traditional investments. The following provides a general discussion of important risk factors relating to all derivative instruments that may be used by the Funds:

Management Risk. Derivative products are highly specialized instruments that require investment techniques and risk analyses different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but also of the derivative itself, without the benefit of observing the performance of the derivative under all possible market conditions.

Credit Risk. The use of a derivative instrument involves the risk that a loss may be sustained as a result of the failure of another party to the contract (counterparty) to make required payments or otherwise comply with the contract’s terms. Additionally, credit default swaps could result in losses if a Fund does not correctly evaluate the creditworthiness of the company on which the credit default swap is based.

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Transamerica Premier Funds Prospectus – Investor Class Shares

Subordination Risk. Some funds may invest in securities, such as certain structured securities or high-yield debt securities, which are subordinated to more senior securities of the issuer, or which represent interests in pools of such subordinated securities. Under the terms of subordinated securities, payments that would otherwise be made to their holders may be required to be made to the holders of more senior securities, and/or the subordinated or junior securities may have junior liens, if they have any rights at all, in any collateral (meaning proceeds of the collateral are required to be paid first to the holders of more senior securities). Subordinated securities will be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

Liquidity Risk. Liquidity risk exists when particular investments are difficult to sell. Although most of a Fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the Fund, particularly during periods of market turmoil. When a Fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the Fund is forced to sell these investments to meet redemptions or for other cash needs, the Fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, a Fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

Leverage Risk. When a Fund engages in transactions that have a leveraging effect on the Fund’s portfolio, the value of the Fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the Fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the Fund would otherwise have. A Fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause a Fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

Lack Of Availability. Because the markets for certain derivative instruments (including markets located in foreign countries) are relatively new and still developing, suitable derivatives transactions may not be available in all circumstances for risk management or other purposes. There is no assurance that a Fund will engage in derivatives transactions at any time or from time to time. A Fund’s ability to use derivatives may be limited by certain regulatory and tax considerations.

Market And Other Risks. Like most other investments, derivative instruments are subject to the risk that the market value of the instrument will change in a way that is detrimental to a Fund’s interest. If a fund manager incorrectly forecasts the value of securities, currencies or interest rates or other economic factors in using derivatives for a Fund, the Fund might have been in a better position if it had not entered into the transaction at all. While some strategies involving derivative instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in other Fund investments. A Fund may also have to buy or sell a security at a disadvantageous time or price because the Fund is legally required to maintain offsetting positions or asset coverage in connection with certain derivative transactions.

Other risks in using derivatives include the risk of mis-pricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indexes. Many derivatives, in particular privately negotiated derivatives, are complex and often valued subjectively. Improper valuations can result in increased cash payment requirements to counterparties or a loss of value to a Fund. Also, the value of derivatives may not correlate perfectly, or at all, with the value of the assets, reference rates or indexes they are designed to closely track. In addition, a Fund’s use of derivatives may cause the Fund to realize higher amounts of short-term capital gains (generally taxed at ordinary income tax rates) than if the Fund had not used such instruments.

INVESTING IN CONVERTIBLE SECURITIES

Since preferred stocks and corporate bonds pay a stated return, their prices usually do not depend on the price of the company’s common stock. But some companies issue preferred stocks and bonds that are convertible into their common stocks. Linked to the common stock in this way, convertible securities typically go up and down in price as the common stock does, adding to their market risk. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

SHORT SALES

A short sale may be effected by selling a security that the Fund does not own. In order to deliver the security to the purchaser, the Fund borrows the security, typically from a broker-dealer or an institutional investor. The Fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the Fund would incur a loss; conversely, if the price declines, the Fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The Fund’s use of short sales in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the Fund held only

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Transamerica Premier Funds Prospectus – Investor Class Shares

long positions. The Fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transactions costs than typical long-only investing.

A short sale may also be effected “against the box” if, at all times when the short position is open, the Fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the Fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the Fund would forego the potential realization of the increased value of the shares sold short.

INVESTING IN FIXED-INCOME INSTRUMENTS

Some Funds invest in “Fixed-Income Instruments,” which include, among others:

•   securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises, including issues by non-government-sponsored entities (like financial institutions) that carry direct guarantees from U.S. government agencies as part of government initiatives in response to the market crisis or otherwise (“U.S. Government Securities”);

•   corporate debt securities of U.S. and non-U.S. issuers, including convertible securities and corporate commercial paper;

•   mortgage-backed and other asset-back securities;

•   inflation-indexed bonds issued by governments and corporations;

•   structures notes, including hybrid or “indexed” securities, event-linked bonds and loan participations;

•   delayed funding loans and revolving credit facilities;

•   bank certificates of deposit, fixed time deposits and bankers’ acceptances;

•   repurchase agreements and reverse repurchase agreements;

•   debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises;

•   obligations of non-U.S. governments or their subdivisions, agencies and government-sponsored enterprises; and

•   obligations of international agencies or supranational entities.

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

•   market risk; fluctuations in market value

•   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

•   prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

•   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

•   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. A Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s Sub-Adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Some Funds also may invest in derivatives based on fixed-income instruments.

PORTFOLIO TURNOVER

A Fund may engage in a significant number of short-term transactions, which may lower fund performance. High turnover rate will not limit a manager’s ability to buy or sell securities for these funds. Increased turnover (100% or more) results in higher brokerage costs or mark-up charges for a Fund. The Funds ultimately pass these charges on to shareholders. Short-term trading may also result in short-term capital gains, which are taxed as ordinary income to shareholders.

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NOTICE OF PRIVACY POLICY

At Transamerica Premier Funds, protecting your privacy is very important to us. We want you to understand what information we collect and how we use it. We collect and use “nonpublic personal information” in connection with providing our customers with a broad range of financial products and services as effectively and conveniently as possible. We treat nonpublic personal information in accordance with our Privacy Policy.

What Information We Collect and From Whom We Collect It

We may collect nonpublic personal information about you from the following sources:

•   Information we receive from you on applications or other forms, such as your name, address and account number;

•   Information we receive from you on applications or other forms, such as your account balance and purchase/redemption history; and

•   Information we receive from non-affiliated third parties, including consumer reporting agencies.

What Information We Disclose and To Whom We Disclose It

We do not disclose any nonpublic personal information about current or former customers to anyone without their express consent, except as permitted by law. We may disclose the nonpublic personal information we collect, as described above, to persons or companies that perform services on our behalf and to other financial institutions with which we have joint marketing agreements. We will require these companies to protect the confidentiality of your nonpublic personal information and to use it only to perform the services for which we have hired them.

Our Security Procedures

We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted by law to assist in providing products or services to you. We maintain written, electronic and procedural safeguards to protect your nonpublic personal information and to safeguard the disposal of certain consumer information.

If you have any questions about our privacy policy, please call 1-800-892-7587, Monday through Friday from 8 a.m. to 7 p.m. Eastern time.

Note: This privacy policy applies only to customers that have a direct relationship with us or our affiliates. If you own shares of Transamerica Premier Funds in the name of a third party such as a bank or broker-dealer, its privacy policy may apply to you instead of ours.

THIS PAGE IS NOT PART OF THIS PROSPECTUS

ADDITIONAL INFORMATION AND ASSISTANCE            

Transamerica Premier Funds
P.O. Box 219427, Kansas City,
MO 64121-9427
Customer Service: 1-800-89-ASK-US (1-800-892-7587)
www.transamericafunds.com

ADDITIONAL INFORMATION about Transamerica Premier Funds is contained in the annual and semi-annual reports to shareholders and in the Statement of Additional Information (“SAI”) dated May 1, 2009, which is incorporated by reference into this prospectus. In the Transamerica Premier Funds’ annual report, you will find a discussion of the market conditions and investment strategies that significantly affected Transamerica Premier Funds’ performance during the last fiscal year.

You may also call 1-800-89-ASK-US (1-800-892-7587) or visit the Transamerica Premier Funds’ website at www.transamericafunds.com (select Transamerica Premier Funds) to request this additional information about the Transamerica Premier Funds without charge or to make shareholder inquiries.

Other information about Transamerica Premier Funds has been filed with and is available from the U.S. Securities and Exchange Commission (“SEC”). Information about Transamerica Premier Funds (including the SAI) can be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the public reference room may be obtained by calling the SEC at 202-551-8090. Information may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC, Washington, DC 20549-6009, or by electronic request at publicinfo@sec.gov.

Reports and other information about Transamerica Premier Funds are also available on the SEC’s internet site at http://www.sec.gov.

For more information about Transamerica Premier Funds, you may obtain a copy of the SAI or the annual and semi-annual reports, without charge, or to make other inquiries about Transamerica Premier Funds, call or write to Transamerica Premier Funds at the phone number or address listed above.

Distributor: Transamerica Capital, Inc.

TPINV0509

The Investment Company Act File Number for Transamerica Investors, Inc. is 811-09010

Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

TRANSAMERICA PREMIER FUNDS – INSTITUTIONAL CLASS SHARES

Prospectus: May 1, 2009

Transamerica Premier High Yield Bond Fund

Neither the U.S. Securities and Exchange Commission (SEC) nor any state securities commission has approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.

Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

TABLE OF CONTENTS

SECTION A — FUND DESCRIPTION	4
Transamerica Premier High Yield Bond Fund	4
SECTION B — SHAREHOLDER INFORMATION	9
§  INVESTMENT ADVISER	9
Management Fees	9
Management Fees Paid in 2008	9
§  SUB-ADVISER	9
Sub-Advisory Fees	10
§  TO CONTACT TRANSAMERICA PREMIER FUNDS	10
§  OPENING AN ACCOUNT	10
Minimum Investment	10
By Mail	10
Through an Authorized Dealer	10
Buying Shares	10
By Check	10
By Automatic Investment Plan	10
By Telephone	10
Through an Authorized Dealer	11
By the Internet	11
By Wire Transfer	11
Other Information	11
§  SELLING SHARES	11
Direct Deposit — ACH	11
Direct Deposit — Wire	11
Check to Address of Record	11
Check to Another Party/Address	12
Systematic Withdrawal Plan (by Direct Deposit ACH or Check)	12
Through an Authorized Dealer	12
§  INVOLUNTARY REDEMPTIONS	12

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

§  FEATURES AND POLICIES	12
Market Timing/Excessive Trading	12
Customer Service	13
Uncashed Checks Issued on Your Account	13
Minimum Dividend Check Amounts	13
Dividend Payment Schedule	13
Minimum Account Balance	13
Telephone Transactions	13
Retirement and ESA State Street Account Maintenance Fees	13
Professional Fees	14
Signature Guarantee	14
Employer-Sponsored Accounts	14
E-mail Communications	14
Statements and Reports	14
§  PRICING OF SHARES	14
How Share Price Is Determined	14
When Share Price Is Determined	14
How NAV is Calculated	15
§  DISTRIBUTIONS AND TAXES	15
Taxes on Distributions in General	15
Taxes on the Sale or Exchange of Shares	16
Withholding Taxes	16
Non-Resident Alien Withholding	16
Other Tax Information	17
§  INVESTMENT POLICY CHANGES	17
§  SUMMARY OF BOND RATINGS	17
§  FINANCIAL HIGHLIGHTS	18
§  APPENDIX A — MORE ON STRATEGIES AND RISKS	A-1
§  ADDITIONAL INFORMATION AND ASSISTANCE	Back Cover

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Listed in this prospectus is the investment objective and principal investment strategies for Transamerica Premier High Yield Bond Fund (the “Fund”). The Fund offers Institutional Class shares in this prospectus. The Fund is advised by Transamerica Asset Management, Inc. (“TAM” or the “Investment Adviser”) and sub-advised by Transamerica Investment Management, LLC (“TIM” or the “Sub-Adviser”). The Fund’s investment objective and strategies are non-fundamental, which means that the Board of Directors may change them without shareholder approval.

As with any investment, there can be no guarantee that the Fund will achieve its investment objective. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency; loss of money is a risk of investing in the Fund.

Please read this prospectus carefully before you invest or send money. It has been written to provide information and assist you in making an informed decision. If you would like additional information, please request a copy of the Statement of Additional Information (“SAI”) (see back cover).

In addition, we suggest you contact your financial professional or a Transamerica Premier Customer Service Representative, who will assist you.

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Transamerica Premier High Yield Bond Fund

Objective

The Fund seeks to achieve a high total return (income plus capital appreciation) by investing primarily in debt instruments and convertible securities, with an emphasis on lower-quality securities.

Principal Strategies and Policies

The Fund generally invests at least 80% of its assets in a diversified selection of lower-rated bonds (below investment grade), commonly known as “junk bonds.” These are bonds rated below Baa by Moody’s or below BBB by Standard & Poor’s (see “Summary of Bond Ratings”). The Fund’s Sub-Adviser, TIM, selects bonds that it believes are likely to be upgraded, return high current income, and rise in value, and are unlikely to default on payments.

TIM uses a “bottom-up” approach to investing. TIM studies industry and economic trends, but focuses on researching individual issuers. The Fund’s portfolio is constructed one company at a time. Each company passes through a research process and stands on its own merits as a viable investment in TIM’s opinion.

To achieve the Fund’s goal, TIM’s fixed-income management team:

•   Seeks to achieve price appreciation and minimize price volatility by identifying bonds that are likely to be upgraded by qualified rating organizations

•   Employs research and credit analysts who seek to minimize purchasing bonds that default by assessing the likelihood of timely payment of interest and principal

•   Invests Fund assets in convertible and other securities consistent with the objective of high total return

The interest rates on short-term obligations held in the Fund’s portfolio will vary, rising or falling with short-term interest rates generally. The Fund’s yield will tend to lag behind general changes in interest rates.

The ability of the Fund’s yield to reflect current market rates will depend on how quickly the obligations in its portfolio mature and how much money is available for investment at current market rates.

Consistent with the Fund’s objective and other policies, TIM may, but need not, invest in derivatives, including futures, forwards, options, and swaps, and may also invest in foreign securities.

The Fund may invest its assets in cash, cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the Fund may do so without limit. Although the Fund would do this only in seeking to avoid losses, the Fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the Fund has any uninvested cash, the Fund would also be subject to risk with respect to the depository institution holding the cash.

Please see Appendix A for more information about investment strategies.

Principal Risks

Risk is inherent in all investing. The value of your investment in the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. The Fund is subject to the following principal risks, as well as other risks described in Appendix A:

Market

The value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline. The value of a security may fall due to factors affecting securities markets generally or a particular sector of the securities markets or factors affecting particular industries or issuers. The equity and debt capital markets in the United States and internationally have experienced unprecedented volatility. This financial crisis has caused a significant decline in the value and liquidity of many securities. This environment could make identifying investment risks and opportunities especially difficult. These market conditions may continue or get worse. Changes in market conditions will not have the same impact on all types of securities.

High-Yield Debt Securities

High-yield debt securities, or junk bonds, are securities which are rated below “investment grade” or are not rated, but are of equivalent quality. High-yield debt securities range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund, like the Fund, with high-yield debt securities may be more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for more highly rated debt securities. As a result, the Fund’s Sub-Adviser may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Transamerica Premier High Yield Bond Fund

Fixed-Income Securities

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

•   market risk: fluctuations in market value

•   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

•   prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

•   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

•   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s Sub-Adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

Derivatives

The use of derivative instruments may involve risks and costs different from, and possibly greater than, the risks and costs associated with investing directly in securities or other traditional investments. The Fund’s use of certain derivatives may in some cases involve forms of financial leverage, which involves risk and may increase the volatility of the Fund’s net asset value. Even a small investment in derivatives can have a disproportionate impact on the Fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by the Fund. The other parties to certain derivative contracts present the same types of default or credit risk as issuers of fixed income securities. Certain derivatives may be illiquid, which may reduce the return of the Fund if it cannot sell or terminate the derivative instrument at an advantageous time or price. Some derivatives may be difficult to value, or the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition, derivatives may be subject to market risk, interest rate risk and credit risk. The Fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative instruments may not be available in all circumstances or at reasonable prices. The Fund’s Sub-Adviser may not make use of derivatives for a variety of reasons.

Convertible Securities

Convertible securities may include corporate notes or preferred stock, but ordinarily are a long-term debt obligation of the issuer convertible at a stated exchange rate into common stock of the issuer. As with most debt securities, the market value of convertible securities tends to decline as interest rates increase, and conversely, to increase as interest rates decline. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

Foreign Securities

Investments in foreign securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”), involve risks relating to political, social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuer markets are subject. These risks may include, without limitation:

•   different accounting and reporting practices

•   less information available to the public

•   less (or different) regulation of securities markets

•   more complex business negotiations

•   less liquidity

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Transamerica Premier High Yield Bond Fund

•   more fluctuations in prices

•   delays in settling foreign securities transactions

•   higher costs for holding shares (custodial fees)

•   higher transaction costs

•   vulnerability to seizure and taxes

•   political or financial instability and small markets

•   different market trading days

Currency

When the Fund invests in securities denominated in foreign currencies, it is subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for reasons such as changes in interest rates, government intervention or political developments. As a result, the Fund’s investments in foreign currency denominated securities may reduce the returns of the Fund.

Focused Investing

To the extent the Fund invests in a limited number of issuers, its performance may be more volatile than funds that hold a greater variety of securities.

Please also see the Fund’s website at www.transamericafunds.com (select Transamerica Premier Funds) for more information about the Fund.

You may lose money if you invest in this Fund.

These and other risks are more fully described in the section entitled “More on Strategies and Risks” in Appendix A of this prospectus.

Disclosure of Portfolio Holdings

A detailed description of the Fund’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund’s Statement of Additional Information. In addition, investors should note that the Fund publishes its holdings on its website at www.transamericafunds.com (select Transamerica Premier Funds) 25 days after the end of each month. Such information will generally remain online for six months or as otherwise consistent with applicable regulations.

Past Performance

The bar chart and the table below provide some indication of the risks of investing in the Fund by showing you how the Fund’s performance has varied from year to year, and how the Fund’s average annual total returns for different periods compared to the returns of broad measures of market performance. The Fund’s primary benchmark, the Merrill Lynch U.S. High Yield, Cash Pay, BB-B Rated Index, and the Fund’s secondary benchmark, the Merrill Lynch U.S. High Yield Cash Pay Index, are widely recognized unmanaged indexes of market performance. Absent any limitation of the Fund’s expenses, total returns would be lower. As with all mutual funds, past performance (before and after taxes) is not a prediction of future results.

Year-by-Year Total Return as of 12/31 (%)

 Best calendar quarter: 6.60% for quarter ended 6/30/2003

­ ­

 Worst calendar quarter: (18.29%) for quarter ended 12/31/2008

Average Annual Total Returns Since Inception (as of 12/31/08)*
	1 Year			5 Years			10 Years
Return Before Taxes		(25.13%	)		(1.17%	)		1.74%
Return After Taxes on Distributions**		(27.53%	)		(3.75%	)		(1.32%	)
Return After Taxes on Distributions and Sale of Fund Shares**		(16.01%	)		(2.20%	)		(0.20%	)
Merrill Lynch U.S. High Yield, Cash Pay, BB-B Rated Index†		(23.63%	)		(0.28%	)		2.47%
Merrill Lynch U.S. High Yield Cash Pay Index††		(26.21%	)		(0.84%	)		2.27%

 *Actual returns may depend on the investor’s individual tax situation. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account.

 **The after-tax returns are calculated using the historic highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.

 †Merrill Lynch U.S. High Yield, Cash Pay, BB-B Rated Index is an unmanaged index comprised of the value-weighted measure of approximately 1,500 BB and B rated bonds

 ††Merrill Lynch U.S. High Yield Cash Pay Index is an unmanaged portfolio constructed to mirror the public high-yield debt market

These indexes do not reflect any commissions, fees or taxes which would be incurred by an investor purchasing the securities represented by such indexes.

6

Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Transamerica Premier High Yield Bond Fund

Fees and Expenses

The table below provides a breakdown of the expenses you may pay if you invest in shares of the Fund. This table sets forth the estimated fees and expenses you may pay if you invest in the Fund’s shares, and, unless otherwise indicated, reflects expenses incurred by the Fund during its fiscal year ended December 31, 2008. Actual expenses may vary significantly.

Shareholder Fees

(fees paid directly from your investment)

Maximum Sales Charge (load) Imposed on Purchases (as a % of offering price)	None
Maximum Deferred Sales Charge (load) (as a % of offering price)	None
Redemption Fee (as a % of amount redeemed)	None

Annual Fund Operating Expenses

(expenses that are deducted from fund assets)

Management Fees	0.53%
Distribution and Service (12b-1) Fees	N/A
Other Expenses1	0.15%
Total Annual Fund Operating Expenses	0.68%
Expense Reduction2	0.03%
Net Operating Expenses	0.65%

 ¹Other expenses have been restated to reflect expenses the Fund expects to incur during its current fiscal year.

 ²Through an expense limitation agreement, TAM has contractually agreed, through April 30, 2010, to waive part of its advisory fee and/or to reimburse any other operating expenses to ensure that annualized expenses for the Fund (other than interest, taxes, brokerage commissions and extraordinary expenses) will not exceed 0.65%. To the extent that TAM waives fees or reduces fees, TIM will reimburse TAM for the total amount of such waiver or reduction. TAM is entitled to reimbursement by the Fund of fees waived or expenses reduced during any of the previous 36 months beginning on the date of the expense limitation agreement on any day the estimated annualized Fund operating expenses are less than 0.65% (other than interest, taxes, brokerage commissions and extraordinary expenses).

Example

The table below is to help you compare the cost of investing in this Fund with the cost of investing in other mutual funds.

The example assumes that you make a one-time investment of $10,000 in the Fund, reinvested all distributions and dividends without a sales charge, and held your shares for the time periods shown and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% annual return (this assumption is required by the SEC and is not a prediction of the Fund’s future performance) and that the Fund’s operating expenses remain the same. The example assumes no fees for IRA accounts. Costs are the same whether you redeem at the end of any period or not.

Investment Period
1 Year		3 Years		5 Years		10 Years
$	66	$	215	$	376	$	844

The actual expenses may be more or less than those shown.

Additional Information

Management

Investment Adviser:

Transamerica Asset Management, Inc. (“TAM” or the “Investment Adviser”)

570 Carillon Parkway

St. Petersburg, FL 33716

For additional information about TAM, see the section entitled “Shareholder Information — Investment Adviser” of this prospectus.

Sub-Adviser:

Transamerica Investment Management, LLC (“TIM” or the “Sub-Adviser”)

11111 Santa Monica Blvd., Suite 820

Los Angeles, CA 90025

For additional information about TIM, see the section entitled “Shareholder Information — Sub-Adviser” of this prospectus.

Portfolio Managers

Brian W. Westhoff, CFA

Portfolio Manager (co-lead)

Brian W. Westhoff is a Portfolio Manager at TIM. Prior to joining TIM in 2003, Mr. Westhoff worked as an Equity Research Intern with Credit Suisse Asset Management, as a Fixed Income Investment Analyst at St. Paul Companies, and as an Argentine/Oil and Gas Equity Research Intern with Merrill Lynch in Argentina. He holds an M.B.A. from Thunderbird, the Garvin Graduate School of International Management, and received a B.S. in business administration from Drake University. Mr. Westhoff has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience.

Kirk J. Kim

Portfolio Manager (co-lead)

Kirk J. Kim is Principal and Portfolio Manager at TIM. He manages sub-advised funds and institutional separate accounts in TIM’s Convertible Securities discipline and is a member of TIM’s

7

Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Transamerica Premier High Yield Bond Fund

Concentrated All Cap Growth Equity investment team. Prior to joining TIM in 1997, Mr. Kim worked as a securities analyst for The Franklin Templeton Group. Mr. Kim holds a B.S. in Finance from the University of Southern California and has 13 years of investment experience.

Peter O. Lopez

Portfolio Manager (co-lead)

Peter O. Lopez is Principal and Director of Research at TIM. He co-manages sub-advised funds and institutional accounts in the Large Growth Equity and Convertible Securities disciplines. Prior to joining TIM in 2003, he was Managing Director at Centre Pacific, LLC. Mr. Lopez also previously served as a Senior Fixed Income Analyst for Transamerica Investment Services, Inc. from 1997–2000. He holds an M.B.A. in Finance and Accounting from the University of Michigan and received a B.A. in Economics from Arizona State University. Mr. Lopez has 17 years of investment experience.

Derek S. Brown, CFA

Portfolio Manager (co)

Derek S. Brown is a Portfolio Manager and Director of Fixed Income at TIM. He manages mutual funds, sub-advised funds and institutional accounts in the Fixed Income discipline. Prior to joining TIM in 2005, he served in the portfolio management and fixed income trading departments at Bradford & Marzec, Inc. Mr. Brown also previously worked in the trading departments of Back Bay Advisors and The Boston Company Asset Management. He holds an M.B.A. from Boston College and received a B.A. in Communications Studies from University of Maine. Mr. Brown has earned the right to use the Chartered Financial Analyst designation and has 17 years of investment experience.

Greg D. Haendel, CFA

Portfolio Manager (co)

Greg D. Haendel is a Portfolio Manager at TIM. Prior to joining TIM in 2003, he worked as a High Yield Intern for Metropolitan West Asset Management, as a Fixed Income Intern for Lehman Brothers in London, as a Mortgage-Backed Portfolio Manager for Co-Bank in Colorado, and as a Global Debt Analyst for Merrill Lynch in New York. Mr. Haendel holds an M.B.A. in Finance and Accounting from The Anderson School at UCLA and received a B.A. in Economics from Amherst College. Mr. Haendel has earned the right to use the Chartered Financial Analyst designation and has 11 years of investment experience

TIM, through its parent company, has provided investment advisory services to various clients since 1967.

The SAI provides additional information about each manager’s compensation, other accounts managed by each manager and each manager’s ownership of securities in the Fund.

8

Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Shareholder Information

INVESTMENT ADVISER

Transamerica Premier Funds’ Board of Directors is responsible for managing the business affairs of Transamerica Premier Funds. The Board oversees the operation of Transamerica Premier Funds by its officers. It also reviews the management of each Fund’s assets by TAM and TIM. You can find additional information about Transamerica Premier Funds’ Directors and officers in the SAI.

TAM, located at 570 Carillon Parkway, St. Petersburg, Florida 33716 serves as Investment Adviser for Transamerica Premier Funds. The Investment Adviser hires the Sub-Adviser to furnish investment advice and recommendations and has entered into a sub-advisory agreement with TIM. The Investment Adviser also monitors the Sub-Adviser’s buying and selling of securities and administration of the Fund.

TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) (“Western Reserve”) and AUSA Holding Company (23%) (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA, is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group.

The Fund may rely on an Order from the SEC (Release IC-23379 dated August 5, 1998) that permits Transamerica Premier Funds and its Investment Adviser, TAM, subject to certain conditions, and without the approval of shareholders to:

(1)  employ a new unaffiliated sub-adviser for the Fund pursuant to the terms of a new investment sub-advisory agreement, either as a replacement for an existing sub-adviser or as an additional sub-adviser;

(2)  materially change the terms of any sub-advisory agreement; and

(3)  continue the employment of an existing sub-adviser on sub-advisory contract terms where a contract has been assigned because of a change of control of the sub-adviser.

In such circumstances, shareholders would receive notice and information about the new sub-adviser within ninety (90) days after the hiring of any new sub-adviser.

Transamerica Investment Management, LLC is an affiliate of TAM and Transamerica Premier Funds.

Management Fees

For its services to the Fund, the Investment Adviser is entitled to receive an advisory fee based on an annual percentage of the Fund’s average daily net assets. It is accrued daily and paid monthly. The fees may be higher than the average advisory fee paid to the investment advisers of other similar funds. The Investment Adviser may waive some or all of its fees from time to time at its discretion.

Management Fees Paid in 2008

For the fiscal year ended December 31, 2008, the Fund paid the following advisory fee as a percentage of the Fund’s average daily net assets, after reimbursement and/or fee waivers (if applicable).

Fund	Percentage
Transamerica Premier High Yield Bond Fund		0.53%

A discussion regarding the basis of the Fund’s Board of Directors approval of the Fund’s advisory arrangements is available in the Fund’s annual report for the fiscal year ended December 31, 2008.

The Fund pays all the costs of its operations that are not assumed by the Investment Adviser, including:

•   custodian

•   legal

•   audit

•   administration

•   registration fees and expenses

•   fees and expenses of directors unaffiliated with the Investment Adviser

Out of its past profits and other available sources, the Investment Adviser (or its affiliates) may pay for distribution and for shareholder services with respect to the Fund provided by broker/dealers and other financial intermediaries. These payments are sometimes referred to as “revenue sharing” arrangements. Revenue sharing is not an expense of the Fund.

SUB-ADVISER

TIM is the Sub-Adviser to the Fund. TIM is located at 11111 Santa Monica Blvd., Suite 820, Los Angeles, CA 90025. TIM is controlled by Transamerica Investment Services, Inc. (“TISI”). TISI is a subsidiary of Transamerica Corporation, 600 Montgomery Street, San Francisco, CA 94111. Transamerica Corporation is a subsidiary of AEGON NV, an international insurance group.

9

Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Shareholder Information

Sub-Advisory Fees

The Sub-Adviser receives compensation, calculated daily and paid monthly, from TAM, at the following annual rate:

	As a % of Average
Fund	Daily Net Assets
Transamerica Premier High Yield Bond Fund		0.53%

TO CONTACT TRANSAMERICA PREMIER FUNDS

•  Customer Service:	1-800-892-7587
•  Internet:	www.transamericafunds.com
•  Fax:	1-866-476-0578
Mailing Address:	Transamerica Premier Funds P.O. Box 219427 Kansas City, MO 64121-9427
Overnight Address:	Transamerica Premier Funds 330 West 9th Street Kansas City, MO 64105

OPENING AN ACCOUNT

Transamerica Premier Funds makes opening an account, investing in shares and account management as easy and efficient as possible. For your convenience, the Fund also provides a complete range of services to meet your investment and financial transaction needs.

Note: To help the U.S. government fight the funding of terrorism and money laundering activities, the USA PATRIOT Act requires all financial institutions to obtain, verify, and record information that identifies each person or entity that opens an account. On your application, be sure to include your name, date of birth (if an individual), residential address and Social Security Number or taxpayer identification number. If there are authorized traders on your account, please provide this information for each trader. If you do not provide this information, your account will not be established. If Transamerica Premier Funds cannot verify your identity within 30 days from the date your account is established, your account may be closed based on the next calculated net asset value (“NAV”) per share.

Minimum Investment

The minimum initial investment is $1,000,000. The minimum initial investment may be waived from time to time by Transamerica Premier Funds at its discretion.

The minimum initial and minimum subsequent investment requirements have been waived for wrap programs at broker/dealer firms having applicable selling and wrap agreements with the Fund and certain qualified retirement plans, excluding IRAs.

The Statement of Additional Information contains additional information.

By Mail

•   Send your completed application and check made payable to Transamerica Fund Services, Inc.

Through an Authorized Dealer

•   The dealer is responsible for opening your account and providing Transamerica Premier Funds with your taxpayer identification number.

Buying Shares

Purchase requests initiated through an automated service that exceed $50,000 per day are not permitted and must be submitted in writing.

By Check

•   Make your check payable and mail to Transamerica Fund Services, Inc.

•   If you are opening a new account, send your completed application along with your check.

•   If you are purchasing shares in an existing account(s), please reference your account number(s) and the Transamerica Premier Fund(s) you wish to invest in. If you do not specify the fund(s) in which you wish to invest, and your referenced account is invested in one fund, your check will be deposited into such fund.

•   Redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply.

•   Transamerica Premier Funds does not accept money orders, traveler’s checks, starter checks, credit card convenience checks or cash. Cashier’s checks and third-party checks may be accepted, subject to approval by Transamerica Premier Funds.

By Automatic Investment Plan

•   With an Automatic Investment Plan (“AIP”), a level dollar amount is invested monthly and payment is deducted electronically from your bank account. Due to your bank’s requirements, please allow up to 30 days for your AIP to begin. Investments may be made between the 3rd and 28th of each month only, and will occur on the 15th if no selection is made. Call Customer Service for information on how to establish an AIP or visit our website to obtain an AIP request form.

By Telephone

•   You may request an electronic transfer of funds from your bank account to your Transamerica Premier Funds account. The electronic bank link option must be established in advance before Automated Clearing House (“ACH”) purchases will be accepted. Call Customer Service or visit our website for information on how

10

Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Shareholder Information

to establish an electronic bank link. Due to your bank’s requirements, please allow up to 30 days to establish this option.

Through an Authorized Dealer

•   If your dealer has already established your account for you, no additional documentation is needed. Call your dealer to place your order. Transamerica Premier Funds must receive your payment within three business days after your order is accepted.

By the Internet

•   You may request an electronic transfer of funds from your bank account to your Transamerica Premier Funds account. The electronic bank link option must be established in advance before ACH purchases will be accepted. Call Customer Service or visit our website for information on how to establish an electronic bank link.

By Wire Transfer

•   You may request that your bank wire funds to your Transamerica Premier Funds account (your bank may charge a fee for such service). You must have an existing account to make a payment by wire transfer. Ask your bank to send your payment to:

Bank of America, NA, Charlotte, NC, ABA# 0260-0959-3, DDA# 5486005475. Provide shareholder name, fund and account numbers.

•   Shares will be purchased at the next determined NAV after receipt of your wire if you have supplied all other required information.

Other Information

If your check, draft or electronic transfer is returned unpaid by your bank, you will be charged a fee of $20 for each item that has been returned.

Transamerica Premier Funds reserves the right to terminate your electronic draft privileges if the drafts are returned unpaid by your bank.

Transamerica Premier Funds or its agents may reject a request for purchase of shares at any time, in whole or in part, including any purchase under the exchange privilege.

SELLING SHARES

Selling shares is also referred to as “redeeming” shares. You can redeem your shares on any day the Fund is open for business.

Proceeds from the redemption of your shares will usually be sent within three business days after receipt in good order of your request for redemption (unless you request to receive payment by wire or another option described below). However, Transamerica Premier Funds has the right to take up to seven days to pay your redemption proceeds, and may postpone payment under certain circumstances, as authorized by law. In cases where shares have recently been purchased and the purchase money is not yet available, redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply. Shares purchased by wire are immediately available and not subject to the 15 day holding period.

Please note that redemption requests greater than $50,000 per day must be submitted in writing. In addition, amounts greater than $50,000 cannot be sent via ACH (check or federal funds wire only). Additionally, requests totaling more than $100,000 must be in writing with an original signature guarantee by all shareholders.

The electronic bank link option must be established in advance for payments made electronically to your bank such as ACH or expedited wire redemptions. Call Customer Service to verify this feature is in place on your account or to obtain information on how to establish the electronic bank link.

To Request Your Redemption and Receive Your Payment By:

Direct Deposit – ACH

•   You may request an “ACH redemption” in writing, by phone or by internet access to your account. Payment should usually be received by your bank account 2-4 banking days after your request is received in good order. Transamerica Premier Funds does not charge for this payment option. Certain IRAs and qualified retirement plans may not be eligible via the internet.

Direct Deposit – Wire

•   You may request an expedited wire redemption in writing or by phone. The electronic bank link option must be established in advance. Otherwise, an original signature guarantee will be required. Wire redemptions have a minimum of $1,000 per wire. Payment should be received by your bank account the next banking day after your request is received in good order. Transamerica Premier Funds charges $10 for this service. Your bank may charge a fee as well.

Check to Address of Record

•   Written Request: Send a letter requesting a withdrawal to Transamerica Premier Funds. Specify the fund, account number and dollar amount or number of shares you wish to redeem. Be sure to include all shareholders’ signatures and any additional documents, as well as an original signature guarantee(s) if required. If you are requesting a distribution from an IRA, federal tax withholding of 10% will apply unless you elect otherwise. If you elect to withhold, the minimum tax withholding rate is 10%.

11

Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Shareholder Information

•   Telephone or Internet Request: You may request your redemption by phone or internet. Certain IRAs and qualified retirement plans may not be eligible.

Check to Another Party/Address

•   This request must be in writing, regardless of amount, signed by all account owners with an original signature guarantee.

Systematic Withdrawal Plan (by Direct Deposit ACH or Check)

•   You can establish a Systematic Withdrawal Plan (“SWP”) either at the time you open your account or at a later date. Call Customer Service for information on how to establish a SWP or visit our website to obtain the appropriate form to complete.

Through an Authorized Dealer

•   You may redeem your shares through an authorized dealer. (They may impose a service charge.) Contact your Registered Representative or call Customer Service for assistance.

Your Request to Sell Your Shares and Receive Payment May Be Subject To:

•   The type of account you have and if there is more than one shareholder.

•   The dollar amount you are requesting; redemptions over $50,000 must be in writing and those redemptions totaling more than $100,000 require a written request with an original signature guarantee for all shareholders on the account.

•   A written request or an original signature guarantee may be required if there have been recent changes made to your account (such as an address change) or other such circumstances. For your protection, if an address change was made in the last 10 days, Transamerica Premier Funds requires a redemption request in writing, signed by all account owners with an original signature guarantee.

•   When redeeming all shares from an account with an active AIP, your AIP will automatically be stopped. Please contact Customer Service if you wish to re-activate your AIP.

•   The Fund reserves the right to refuse a telephone redemption request if it is believed it is advisable to do so. The telephone redemption option may be suspended or terminated at any time without advance notice.

•   Redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply.

•   Shares will normally be redeemed for cash, although the Fund retains the right to redeem its shares in kind. Please see the SAI for more details.

•   If you request that a withdrawal check be delivered overnight, a $20 overnight fee will be charged; for Saturday delivery, a $30 overnight fee will be charged.

Please see additional information relating to signature guarantees later in this prospectus.

INVOLUNTARY REDEMPTIONS

The Fund reserves the right to close your account if the account value falls below the Fund’s minimum account balance, or you are deemed to engage in activities that are illegal (such as late trading) or otherwise believed to be detrimental to the Fund (such as market timing or frequent small redemptions), to the fullest extent permitted by law.

FEATURES AND POLICIES

Market Timing/Excessive Trading

Some investors try to profit from various short-term or frequent trading strategies known as market timing. Examples of market timing include switching money into funds when their share prices are expected to rise and taking money out when their share prices are expected to fall, and switching from one fund to another and then back again after a short period of time. As money is shifted in and out, a fund incurs expenses for buying and selling securities. Excessive purchases, redemptions or exchanges of fund shares disrupt portfolio management, hurt fund performance and drive fund expenses higher. For example, the fund may be forced to liquidate investments as a result of short-term trading and incur increased brokerage costs or realize taxable capital gains without attaining any investment advantage. These costs are borne by all shareholders, including long-term investors who do not generate the costs.

Transamerica Premier Funds’ Board of Directors has approved policies that are designed to discourage market timing or excessive trading, which include limitations on the number of transactions in fund shares, as described in this prospectus. If you intend to engage in such practices, we request that you do not purchase shares of the Fund.

The Fund reserves the right to reject any request to purchase shares, including purchases in connection with an exchange transaction, which the Fund reasonably believes to be in connection with market timing or excessive trading. The Fund generally will consider four or more exchanges between funds, or frequent purchases and redemptions having a similar effect, during any rolling 90-day period to be evidence of market timing or excessive trading by a shareholder or by accounts under common control (for example, related shareholders, or a financial adviser with discretionary trading

12

Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Shareholder Information

authority over multiple accounts). However, the Fund reserves the right to determine less active trading to be “excessive” or related to market timing.

While the Fund discourages market timing and excessive short-term trading, the Fund cannot always recognize or detect such trading, particularly if it is facilitated by financial intermediaries or done through Omnibus Account Arrangements. The Fund’s distributor has entered into agreements with intermediaries requiring the intermediaries to provide certain information to help identify harmful trading activity and to prohibit further purchases or exchanges by a shareholder identified as having engaged in excessive trading. There is no guarantee that the procedures used by financial intermediaries will be able to curtail frequent, short-term trading activity. For example, shareholders who seek to engage in frequent, short-term trading activity may use a variety of strategies to avoid detection, and the financial intermediaries’ ability to deter such activity may be limited by operational and information systems capabilities. Due to the risk that the Fund and financial intermediaries may not detect all harmful trading activity, it is possible that shareholders may bear the risks associated with such activity.

Orders to purchase, redeem or exchange shares forwarded by certain omnibus accounts with Transamerica Premier Funds will not be considered to be market timing or excessive trading for purposes of Transamerica Premier Funds’ policies. However, the market timing and excessive trading policies of these omnibus firms or plans may apply to transactions by the underlying shareholders.

Customer Service

Occasionally, Transamerica Premier Funds experiences high call volume due to unusual market activity or other events that may make it difficult for you to reach a Customer Service Representative by telephone. If you are unable to reach Transamerica Premier Funds by telephone, please consider visiting our website at www.transamericafunds.com. You may also send instructions by mail, by fax, or by using the Premier Quote line (automated phone system).

Uncashed Checks Issued on Your Account

If any check Transamerica Premier Funds issues is returned by the Post Office as undeliverable, or remains outstanding (uncashed) for six months, we reserve the right to reinvest check proceeds back into your account at the net asset value next calculated after reinvestment. If applicable, we will also change your account distribution option from cash to reinvest. Interest does not accrue on amounts represented by uncashed checks. In cases where we are unable to reinvest check proceeds in the Fund that you held, for example, if the Fund has been liquidated or is closed to new investments, we reserve the right to reinvest the proceeds in another Transamerica Premier Fund, such as the Transamerica Premier Cash Reserve Fund.

Minimum Dividend Check Amounts

To control costs associated with issuing and administering dividend checks, we reserve the right not to issue checks under a specified amount. For accounts with the cash by check dividend distribution option, if the dividend payment total is less than $10, the distribution will be reinvested into the account and no check will be issued.

Dividend Payment Schedule

Fund	When It Pays
Transamerica Premier High Yield Bond Fund	Monthly

Minimum Account Balance

Due to the proportionately higher cost of maintaining customer accounts with balances below the stated minimum, Transamerica Premier Funds reserves the right to redeem all shares in any account for its net asset value if at any time the total value of the account is less than $100,000. Transamerica Premier Funds will notify you if the value of the account is less than the required minimum. You will have at least 60 days to bring the value of the account up to the required minimum before the redemption is processed.

Telephone Transactions

Transamerica Premier Funds and its transfer agent, Transamerica Fund Services, Inc. (“TFS”), are not liable for complying with telephone instructions that are deemed by them to be genuine. Transamerica Premier Funds and TFS will employ reasonable procedures to help ensure telephone instructions are genuine. In situations where Transamerica Premier Funds or TFS reasonably believe they were acting on genuine telephone instructions, you bear the risk of loss. These procedures may include requiring personal identification, providing written confirmation of transactions and tape recording conversations. Transamerica Premier Funds reserves the right to modify the telephone redemption privilege at any time.

Retirement and ESA State Street Account Maintenance Fees

Retirement plan and Coverdell ESA State Street accounts are subject to an annual custodial fee of $15 per fund account, with a maximum fee of $30 per Social Security Number. For example, an IRA in two fund accounts would normally be subject to a $30 annual custodial fee. The fee is waived if the total of the retirement plan and ESA account(s)’s value per Social Security Number is more than $50,000.

13

Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Shareholder Information

Professional Fees

Your financial professional may charge a fee for his or her services. This fee will be in addition to any fees charged by Transamerica Premier Funds. Your financial professional will answer any questions that you may have regarding such fees.

Signature Guarantee

An original signature guarantee assures that a signature is genuine so that you are protected from unauthorized account transactions. Notarization is not an acceptable substitute. Acceptable guarantors only include participants in the Securities Transfer Agents Medallion Program (“STAMP2000”). Participants in STAMP2000 may include financial institutions such as banks, savings and loan associations, trust companies, credit unions, broker-dealers and member firms of a national securities exchange.

An original signature guarantee is required if any of the following is applicable:

•   You request a redemption or distribution transaction totaling more than $100,000 or, in the case of an IRA with a market value in excess of $100,000, you request a custodian to custodian transfer.

•   You would like a check made payable to anyone other than the shareholder(s) of record.

•   You would like a check mailed to an address which has been changed within 10 days of the redemption request.

•   You would like a check mailed to an address other than the address of record.

•   You would like your redemption proceeds wired to a bank account other than a bank account of record.

•   You are adding or removing a shareholder from an account.

•   You are changing ownership of an account.

•   When establishing an electronic bank link, if the Transamerica Premier Funds account holder’s name does not appear on the check.

The Fund reserves the right to require an original signature guarantee under other circumstances or to reject or delay redemption on certain legal grounds.

An original signature guarantee may be refused if any of the following is applicable:

•   It does not appear valid or in good form.

•   The transaction amount exceeds the surety bond limit of an original signature guarantee.

•   The guarantee stamp has been reported as stolen, missing or counterfeit.

Employer-Sponsored Accounts

If you participate in an employer-sponsored plan and wish to make an allocation change to your current fund selection, you or your financial professional must notify Transamerica Premier Funds by phone or in writing. Please also remember to inform your employer of the change(s) to your fund allocation. Documentation for allocations submitted online or in writing from your employer will be used to allocate your contributions. This documentation will supersede all other prior instructions received from you or your financial professional. (Note: If you perform a partial or complete exchange to a new fund selection, your current fund allocation will remain unchanged for future contributions unless specified otherwise.)

E-mail Communications

As e-mail communications may not be secure, and because we are unable to take reasonable precautions to verify your shareholder and transaction information, we cannot respond to account-specific requests received via email. For your protection, we ask that all transaction requests be submitted only via telephone, mail or through the secure link on our website.

Statements and Reports

Transamerica Premier Funds will send you a confirmation statement after every transaction that affects your account balance or registration, with the exception of systematic transactions or transactions necessary to assess account fees. Systematic transactions and fees will be shown on your next regularly scheduled quarterly statement. Information regarding these fees is disclosed in this prospectus. Please review the confirmation statement carefully and promptly notify Transamerica Premier Funds of any error. Information about the tax status of income dividends and capital gains distributions will be mailed to shareholders early each year.

Please retain your statements. If you require historical statements, Transamerica Premier Funds may charge $10 per statement per year up to a maximum of $50 per Social Security Number. Financial reports for the Fund, which include a list of the holdings, will be mailed twice a year to all shareholders.

PRICING OF SHARES

How Share Price Is Determined

The price at which shares are purchased or redeemed is the NAV that is next calculated following receipt and acceptance of a purchase order in good order or receipt of a redemption order in good order by Transamerica Premier Funds or an authorized intermediary.

When Share Price Is Determined

The NAV of the Fund is determined on each day the New York Stock Exchange (“NYSE”) is open for business. The NAV is not determined

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Shareholder Information

on days when the NYSE is closed (generally New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas). Foreign securities may trade in their primary markets on weekends or other days when the Fund does not price its shares (therefore, the NAV of the Fund holding foreign securities may change on days when shareholders will not be able to buy or sell shares of the Fund).

Purchase orders received in good order and accepted, and redemption orders received in good order, before the close of business on the NYSE, usually 4:00 p.m. Eastern time, receive the NAV determined as of the close of the NYSE that day. Purchase and redemption requests received after the NYSE is closed receive the NAV at the close of the NYSE the next day the NYSE is open. Purchase and redemption requests by telephone are deemed received when the telephone call is received.

How NAV is Calculated

The NAV of the Fund is calculated by taking the value of the Fund’s net assets and dividing by the number of shares of the Fund that are then outstanding.

The Board of Directors has approved procedures to be used to value the Fund’s securities for the purposes of determining the Fund’s NAV. The valuation of securities of the Fund is determined in good faith by or under the direction of the Board. The Board has delegated certain valuation functions for the Fund to TAM.

In general, securities and other investments are based on market prices at the close of regular trading on the NYSE. Fund securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-dominated foreign securities or ADRs, are valued at the closing price on the exchange or system where the security is principally traded. With respect to securities traded on the NASDAQ/NMS, such closing price may be the last reported sale price or the NASDAQ Official Closing Price (“NOCP”). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value should be determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales for that day on any exchange or system, a security is valued at the closing bid quotes on the exchange or system where the security is principally traded, or at the NOCP, if applicable. Foreign securities traded on U.S. exchanges are generally priced using last sale price regardless of trading activity. Securities traded over-the-counter are valued at the mean of the last bid and asked prices. The market price for debt obligations and certain derivative securities is generally the price supplied by an independent third party pricing service, which may use market prices or quotations or a variety of fair value techniques and methodologies. Short-term debt obligations that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. The prices that the Fund uses may differ from the amounts that would be realized if the investments were sold and the differences could be significant, particularly for securities that trade in relatively thin markets and/or markets that experience extreme volatility. Foreign securities generally are valued based on quotations from the primary market in which they are traded, and are converted from the local currency into U.S. dollars using current exchange rates. Market quotations for securities prices may be obtained from automated pricing services. Shares of open-end investment companies are generally valued at the net asset value per share reported by that investment company.

When market quotations are not readily available (which may include closing prices deemed to be unreliable because of the occurrence of a subsequent event), a valuation committee appointed by the Board of Directors may, in good faith, establish a value for the security in accordance with fair valuation procedures adopted by the Board of Directors. The types of securities for which such fair value pricing may be required include, but are not limited to: foreign securities, where a significant event occurs after the close of the foreign market on which such security principally trades, but before the close of the NYSE, that is likely to have changed the value of such security; securities for which the closing value is deemed unreliable; securities of an issuer that has entered into a restructuring; securities whose trading has been halted or suspended; fixed-income securities that have gone into default or for which there is no current market value quotation; and securities that are restricted as to transfer or resale. The Fund uses a fair value model developed by an independent third party pricing service to price foreign equity securities on days when there is a certain percentage change in the value of a domestic equity security index, as such percentage may be determined by TAM from time to time.

Valuing securities in accordance with fair value procedures involves greater reliance on judgment than valuing securities based on readily available market quotations. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service. There can be no assurance that the Fund could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the Fund determines its NAV.

DISTRIBUTIONS AND TAXES

Taxes on Distributions in General

The Fund will distribute all or substantially all of its net investment income and net capital gains to its shareholders each year. Although the Fund will not have to pay income tax on amounts it distributes to shareholders, shareholders that are not generally tax-exempt will be

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Shareholder Information

taxed on amounts they receive. Shareholders who are not subject to tax on their income, such as qualified retirement accounts and other tax-exempt investors, generally will not be required to pay any tax on distributions. If the Fund declares a dividend in October, November, or December, payable to shareholders of record in such a month, and pays it in January of the following year, shareholders will be taxed on the dividend as if they received it in the year in which it was declared.

You normally will be taxed on distributions you receive from the Fund, regardless of whether they are paid to you in cash or are reinvested in additional Fund shares.

The following are guidelines for how certain distributions by the Fund are generally taxed to individual taxpayers under current federal income tax law:

•   Distributions of net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) will be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets).

•   Distributions designated by the Fund as “qualified dividend income” will also be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets). Qualified dividend income generally is income derived from certain dividends from U.S. corporations or certain foreign corporations. Since the Fund’s income is derived primarily from sources that do not pay qualified dividend income, dividends from the Fund generally will not qualify for taxation at the maximum 15% U.S. federal income tax rate available to individuals on qualified dividend income.

•   Other distributions generally will be taxed at the ordinary tax rate applicable to the shareholder.

Since the Fund’s income is derived primarily from sources that do not pay dividends, dividends from the Fund generally will not qualify for the dividends-received deduction for corporate shareholders.

The Fund will send you a tax report annually summarizing the amount of and the tax aspects of your distributions. If you buy shares of the Fund shortly before it makes a distribution, the distribution may be taxable to you even though it may actually be a return of a portion of your investment. This is known as “buying a dividend.”

Investors who invest through tax-deferred accounts, such as IRAs, 403(b) accounts, and qualified retirement plans, will ordinarily not be subject to tax until a distribution is made from the account at which time such distribution is generally taxed as ordinary income. These accounts are subject to complex tax rules and all tax-deferred account investors should consult their tax advisers regarding their investments in a tax-deferred account.

You must provide your taxpayer identification number to the Fund along with certifications required by the Internal Revenue Service upon your investment in Fund shares.

Taxes on the Sale or Exchange of Shares

If you sell shares of the Fund or exchange them for shares of another fund, you generally will have a capital gain or loss, which generally will be a long-term capital gain or loss if you held the shares for more than one year; otherwise it will be a short-term capital gain or loss. Any loss recognized on shares held for six months or less will be treated as long-term capital loss to the extent of any amounts treated as distributions of long-term capital gain that were received with respect to the shares.

Any gain or loss on the sale or exchange of shares is computed by subtracting your tax basis in the shares from the redemption proceeds in the case of a sale or the value of the shares received in the case of an exchange. Because your tax basis depends on the original purchase price and on the price at which any dividends may have been reinvested, you should be sure to keep account statements so that you or your tax preparer will be able to determine whether a sale will result in a taxable gain or loss.

Withholding Taxes

The Fund may be required to apply backup withholding of U.S. federal income tax at the fourth lowest tax rate applicable to unmarried individuals (currently 28%) on all distributions and redemption proceeds payable to you if you fail to provide the Fund with your correct taxpayer identification number or to make required certifications, or if you have been notified by the IRS that you are subject to backup withholding. Backup withholding is not an additional tax, but is a method by which the IRS ensures that it will collect taxes otherwise due. Any amounts withheld may be credited against your U.S. federal income tax liability.

Non-Resident Alien Withholding

If you are a non-U.S. investor, you must provide a U.S. mailing address to establish an account unless you have a broker/dealer firm that submits your account through the National Securities Clearing Corporation, in which your broker/dealer will be required to submit a Foreign Certification Form. Investors changing a mailing address to a non-U.S. address will be required to have a Foreign Certification Form completed and returned to us if they have a broker/dealer before future purchases can be accepted. Shareholders that are not U.S. investors under the federal tax laws may be subject to U.S. withholding on certain distributions and are generally subject to U.S. tax certification requirements. Additionally, you will need to provide the appropriate tax form (generally, Form W-8BEN) and documentary evidence if you are not a U.S. resident alien.

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Shareholder Information

Other Tax Information

This tax discussion is for general information only. In addition to federal income taxes, you may be subject to state, local or foreign taxes on payments received from, and investments made in shares of, the Fund. More information is provided in the SAI of the Fund. You should also consult your own tax advisor for information regarding all tax consequences applicable to your investments in Transamerica Premier Funds.

INVESTMENT POLICY CHANGES

Transamerica Premier High Yield Bond Fund, as part of its investment policy, invests at least 80% of its assets (defined as net assets plus the amount of any borrowings for investment purposes) in certain securities as indicated in this prospectus. Shareholders will be provided with at least 60 days’ prior written notice of any changes in the 80% investment policy. Such notice will comply with the conditions set forth in any applicable SEC rules then in effect.

To the extent authorized by law, Transamerica Premier Funds and the Fund reserves the right to discontinue offering shares at any time, to merge a class of shares, or to cease operations entirely.

SUMMARY OF BOND RATINGS

Following is a summary of the grade indicators used by two of the most prominent, independent rating agencies (Moody’s Investors Service, Inc. and Standard & Poor’s Corporation) to rate the quality of bonds. The first four categories are generally considered investment quality bonds. Those below that level are of lower quality, commonly referred to as “junk bonds.”

			Standard
Investment Grade	Moody’s		& Poor’s
Highest quality		Aaa		AAA
High quality		Aa		AA
Upper medium		A		A
Medium, speculative features		Baa		BBB
Lower Quality
Moderately speculative		Ba		BB
Speculative		B		B
Very speculative		Caa		CCC
Very high risk		Ca		CC
Highest risk, may not be paying interest		C		C
In arrears or default		C		D

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Shareholder Information

FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand the Fund’s performance for the past five years. The total returns in the table represent the rate an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all distributions). This information through the period ended December 31, 2008 has been derived from financial statements audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the Fund’s financial statements, is included in the Transamerica Premier Funds’ 2008 Annual Report which is available by request by calling 1-800-892-7587.

The following table includes selected data for a share outstanding throughout each period and other performance information derived from the financial statements.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	7.29		$	7.79		$	7.65		$	7.95		$	7.70
Operations
Net investment income(a)		0.57			0.57			0.55			0.52			0.54
Net realized and unrealized gain (loss) on investments		(2.30	)		(0.49	)		0.13			(0.29	)		0.26
Total from investment operations		(1.73	)		0.08			0.68			0.23			0.80
Dividends/Distributions and Other to Shareholders
Net investment income		(0.59	)		(0.58	)		(0.54	)		(0.53	)		(0.55	)
Total dividends/distributions		(0.59	)		(0.58	)		(0.54	)		(0.53	)		(0.55	)
Net Asset Value
End of year	$	4.97		$	7.29		$	7.79		$	7.65		$	7.95
Total Return(b)		(25.13%	)		0.86%			9.23%			3.08%			10.88%
Ratio and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver		0.65%			0.65%			0.64%			0.65%			0.63%
Before reimbursement/fee waiver		0.65%			0.66%			0.64%			0.70%			0.63%
Net investment income, after reimbursement/fee waiver		8.77%			7.30%			7.09%			6.65%			7.06%
Portfolio turnover rate		82%			89%			127%			93%			152%
Net assets end of the year (in thousands)	$	26,582		$	48,509		$	105,597		$	97,480		$	135,161

 ^(a)Calculation based on the average number of shares outstanding during the period.

 ^(b)Total Return represents aggregate total return for each period.

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

Appendix A

More on Strategies and Risks

HOW TO USE THIS SECTION

Descriptions of the principal strategies and risks are provided earlier in this prospectus. Referrals are made to this Appendix for more complete information associated with investing in the Fund. For best understanding, first read the description of the Fund. Then refer to this section to read about the risks particular to the Fund. For additional discussions of strategies and risks, please refer to the SAI, which is available upon request. See the back cover of this prospectus for information on how to order the SAI.

DIVERSIFICATION

The Investment Company Act of 1940 (“1940 Act”) classifies investment companies as either diversified or non-diversified. Diversification is the practice of spreading a fund’s assets over a number of issuers to reduce risk. A non-diversified fund has the ability to take larger positions in fewer issuers. Because the appreciation or depreciation of a single security may have a greater impact on the net asset value of a non-diversified fund, its share price can be expected to fluctuate more than a diversified fund.

The Fund qualifies as a diversified fund under the 1940 Act.

WHAT IS “BOTTOM-UP” ANALYSIS?

When the investment adviser uses a “bottom-up” approach, it looks primarily at individual companies against the context of broader market factors. It seeks to identify individual companies with earnings growth potential that may not be recognized by the market at large.

INVESTING IN BONDS

Like common stocks, bonds fluctuate in value, though the factors causing this are different, including:

Changes in Interest Rates. Bond prices tend to move the opposite of interest rates. Why? Because when interest rates on new bond issues go up, rates on existing bonds stay the same and they become less desirable. When rates go down, the reverse happens. This is also true for most preferred stocks and some convertible securities.

Length of Time to Maturity. When a bond matures, the issuer must pay the owner its face value. If the maturity date is a long way off, many things can affect its value, so a bond is more volatile the farther it is from maturity. As that date approaches, fluctuations usually become smaller and the price gets closer to face value.

Defaults. Bond issuers make at least two promises: (1) to pay interest during the bond’s term and (2) to return principal when it matures. If an issuer fails to keep one or both of these promises, the bond will probably drop in price dramatically, and may even become worthless.

Declines in Ratings. At the time of issue, most bonds are rated by professional rating services, such as Moody’s Investors Service (“Moody’s”) and Standard & Poor’s Rating Group (“S&P”). The stronger the financial backing behind the bond, the higher the rating. If this backing is weakened or lost, the rating service may downgrade the bond’s rating. This is virtually certain to cause the bond to drop in price.

Lack of Rating. Some bonds are considered speculative, or for other reasons are not rated. Such bonds must pay a higher interest rate in order to attract investors. They’re considered riskier because of the higher possibility of default or loss of liquidity.

Low Quality. High-yield/high-risk securities (commonly known as “junk bonds”) have greater credit risk, are more sensitive to interest rate movements, are considered more speculative, have a greater vulnerability to economic changes, subject to greater price volatility and are less liquid than higher quality debt securities because their issuers may be less secure financially and more sensitive to downturns in the economy. In addition, the secondary market for such securities may not be as liquid as that for higher quality debt securities. As a result, the Sub-Adviser of the Fund may find it more difficult to sell these securities or may have to sell them at lower prices. High-yield securities are not generally meant for short-term investing.

Loss of Liquidity. If a bond is downgraded, or for other reasons drops in price, or if the bond is a type of investment that falls out of favor with investors, the market demand for it may “dry up.” In that case, the bond may be hard to sell or “liquidate” (convert to cash). Please see Appendix A of the SAI for a description of corporate bond ratings.

VOLATILITY

The more an investment goes up and down in price, the more volatile it is said to be. Volatility increases the market risk because even though the Fund may go up more than the market in good times, it may also go down more than the market in bad times. If you decide to sell when a volatile fund is down, you could lose more. Price changes may be temporary and for extended periods.

TEMPORARY DEFENSIVE STRATEGIES

For temporary defensive purposes, the Fund may, at times, choose to hold some portion of its net assets in cash, or to invest that cash in a variety of debt securities. This may be done as a defensive measure at times when desirable risk/reward characteristics are not available in stocks or to earn income from otherwise uninvested cash. When the Fund increases its cash or debt investment position, its income may increase while its ability to participate in stock market advances or declines decreases. Furthermore, if the Fund assumes a temporary defensive position it may not be able to achieve its investment objective.

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

INVESTING IN FOREIGN SECURITIES

Foreign securities are investments offered by non-U.S. companies, governments and government agencies. They involve risks in addition to those associated with securities of domestic issuers, including:

Changes in Currency Values. Foreign securities are sold in currencies other than U.S. dollars. If a currency’s value drops, the value of Fund shares could drop, too. Also, dividend and interest payments may be lower. Factors affecting exchange rates include, without limitation: differing interest rates among countries; balances of trade; amount of a country’s overseas investments; and intervention by banks. The Fund may also invest in American Depositary Receipts (“ADRs”) and American Depositary Shares (“ADSs”). They represent securities of foreign companies traded on U.S. exchanges, and their values are expressed in U.S. dollars. Changes in the value of the underlying foreign currency will change the value of the ADR or ADS. The Fund may incur costs when it converts other currencies into dollars, and vice-versa.

Currency Speculation. The foreign currency market is largely unregulated and subject to speculation. The Fund’s investments in foreign currency denominated securities may reduce the return of the Fund.

Different Accounting and Reporting Practices. Foreign tax laws are different, as are laws, practices and standards for accounting, auditing and reporting data to investors.

Less Information Available to the Public. Foreign companies usually make far less information available to the public.

Less Regulation. Securities regulations in many foreign countries are more lax than in the U.S. In addition, regulation of banks and capital markets can be weak.

More Complex Negotiations. Because of differing business and legal procedures, the Fund might find it hard to enforce obligations or negotiate favorable brokerage commission rates.

Less Liquidity/More Volatility. Some foreign securities are harder to convert to cash than U.S. securities, and their prices may fluctuate more dramatically.

Settlement Delays. “Settlement” is the process of completing payment and delivery of a securities transaction. In many countries, this process takes longer than it does in the U.S.

Higher Custodial Charges. Fees charged by the Fund’s custodian for holding shares are higher for foreign securities than those of domestic securities.

Vulnerability to Seizure and Taxes. Some governments can seize assets. They may also limit movement of assets from the country. Fund interest, dividends and capital gains may be subject to foreign withholding taxes.

Political or Financial Instability and Small Markets. Developing countries can be politically unstable. Economies can be dominated by a few industries, and markets may trade a small number of securities. Regulation of banks and capital markets can be weak.

Different Market Trading Days. Foreign markets may not be open for trading the same days as U.S. markets are open and asset values can change before a transaction occurs.

Currency Hedging. The Fund currently may enter into forward currency contracts to hedge against declines in the value of securities denominated in, or whose value is tied to, a currency other than the U.S. dollar or to reduce the impact of currency fluctuation on purchases and sales of such securities. Shifting the Fund’s currency exposure from one currency to another removes the Fund’s opportunity to profit from the original currency and involves a risk of increased losses for the Fund if the sub-adviser’s projection of future exchange rates is inaccurate.

Emerging Markets Risk. Investing in the securities of issuers located in or principally doing business in emerging markets bears foreign exposure risks as discussed above. In addition, the risks associated with investing in emerging markets are often greater than investing in developed foreign markets. Specifically, the economic structures in emerging markets countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging markets countries may be affected by national policies that restrict foreign investments. Emerging markets countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. In addition, the Fund that invests in emerging markets countries may be required to establish special custody or other arrangements before investing.

INVESTING IN DERIVATIVES

The Fund may use derivative instruments as part of its investment strategy. Generally, derivatives are financial contracts whose value depends upon, or is derived from, the value of an underlying asset, reference rate or index, and may relate to stocks, bonds, interest rates, currencies or currency exchange rates, commodities, and related indexes. Examples of derivative instruments include option contracts, futures contracts, options on futures contracts and swap agreements (including, but not limited to, credit default swaps). There is no assurance that the use of any derivatives strategy will succeed. Also, investing in financial contracts such as options involves additional risks and costs, such as inaccurate market predictions which may result in losses instead of gains, and prices

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

may not match so the benefits of the transaction might be diminished and the Fund may incur substantial losses.

The Fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other more traditional investments. The following provides a general discussion of important risk factors relating to all derivative instruments that may be used by the Fund:

Management Risk. Derivative products are highly specialized instruments that require investment techniques and risk analyses different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but also of the derivative itself, without the benefit of observing the performance of the derivative under all possible market conditions.

Credit Risk. The use of a derivative instrument involves the risk that a loss may be sustained as a result of the failure of another party to the contract (counterparty) to make required payments or otherwise comply with the contract’s terms. Additionally, credit default swaps could result in losses if the Fund does not correctly evaluate the creditworthiness of the company on which the credit default swap is based.

Subordination Risk. The Fund may invest in securities, such as certain structured securities or high-yield debt securities, which are subordinated to more senior securities of the issuer, or which represent interests in pools of such subordinated securities. Under the terms of subordinated securities, payments that would otherwise be made to their holders may be required to be made to the holders of more senior securities, and/or the subordinated or junior securities may have junior liens, if they have any rights at all, in any collateral (meaning proceeds of the collateral are required to be paid first to the holders of more senior securities).

Subordinated securities will be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

Liquidity Risk. Liquidity risk exists when particular investments are difficult to sell. Although most of the Fund’s securities must be liquid at the time of investment, securities may become illiquid after purchase by the Fund, particularly during periods of market turmoil. When the Fund holds illiquid investments, the portfolio may be harder to value, especially in changing markets, and if the Fund is forced to sell these investments to meet redemptions or for other cash needs, the Fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the Fund, due to limitations on investments in illiquid securities, may be unable to achieve its desired level of exposure to a certain sector.

Leverage Risk. When the Fund engages in transactions that have a leveraging effect on the Fund’s portfolio, the value of the Fund will be more volatile and all other risks will tend to be compounded. This is because leverage generally magnifies the effect of any increase or decrease in the value of the Fund’s underlying assets or creates investment risk with respect to a larger pool of assets than the Fund would otherwise have. The Fund may take on leveraging risk by, among other things, engaging in derivative, when-issued, delayed-delivery, forward commitment or forward roll transactions or reverse repurchase agreements. Engaging in such transactions may cause the Fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or meet segregation requirements.

Lack of Availability. Because the markets for certain derivative instruments (including markets located in foreign countries) are relatively new and still developing, suitable derivatives transactions may not be available in all circumstances for risk management or other purposes. There is no assurance that the Fund will engage in derivatives transactions at any time or from time to time. The Fund’s ability to use derivatives may be limited by certain regulatory and tax considerations.

Market and Other Risks. Like most other investments, derivative instruments are subject to the risk that the market value of the instrument will change in a way detrimental to the Fund’s interest. If the Fund manager incorrectly forecasts the value of securities, currencies or interest rates or other economic factors in using derivatives for the Fund, the Fund might have been in a better position if it had not entered into the transaction at all. While some strategies involving derivative instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in other Fund investments. The Fund may also have to buy or sell a security at a disadvantageous time or price because the Fund is legally required to maintain offsetting positions or asset coverage in connection with certain derivative transactions.

Other risks in using derivatives include the risk of mis-pricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indexes. Many derivatives, in particular privately negotiated derivatives, are complex and often valued subjectively. Improper valuations can result in increased cash payment requirements to counterparties or a loss of value to the Fund. Also, the value of derivatives may not correlate perfectly, or at all, with the value of the assets, reference rates or indexes they are designed to closely track. In addition, the Fund’s use of derivatives may cause the Fund to realize higher amounts of short-term capital gains (generally taxed at ordinary income tax rates) than if the Fund had not used such instruments.

INVESTING IN CONVERTIBLE SECURITIES

Since preferred stocks and corporate bonds pay a stated return, their prices usually do not depend on the price of the company’s common stock, but some companies issue preferred stocks and bonds that are convertible into their common stocks. Linked to the common stock in

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Transamerica Premier Institutional Funds Prospectus – Institutional Class Shares

this way, convertible securities typically go up and down in price as the common stock does, adding to their market risk. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the price of the convertible security tends to reflect the value of the underlying common stock.

INVESTING IN FIXED-INCOME INSTRUMENTS

The Fund invests in “Fixed-Income Instruments,” which include, among others:

•   securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises, including issues by non-guaranteed-sponsored entities (like financial institutions) that carry direct guarantees from U.S. government agencies as part of government initiatives in response to the market crisis or otherwise (“U.S. Government Securities”);

•   corporate debt securities of U.S. and non-U.S. issuers, including convertible securities and corporate commercial paper;

•   mortgage-backed and other asset-back securities;

•   inflation-indexed bonds issued by governments and corporations;

•   structures notes, including hybrid or “indexed” securities, event-linked bonds and loan participations;

•   delayed funding loans and revolving credit facilities;

•   bank certificates of deposit, fixed time deposits and bankers’ acceptances;

•   repurchase agreements and reverse repurchase agreements;

•   debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises;

•   obligations of non-U.S. governments or their subdivisions, agencies and government-sponsored enterprises; and

•   obligations of international agencies or supranational entities.

The value of fixed-income securities may change daily based on changes in interest rates, and other market conditions and factors. Risks include, without limitation:

•   market risk; fluctuations in market value

•   interest rate risk: the value of a fixed-income security generally decreases as interest rates rise. This may also be the case for dividend paying stocks. Increases in interest rates may cause the value of your investment to go down. The longer the maturity or duration, the more sensitive the value of a fixed-income security is to fluctuations in interest rates

•   prepayment or call risk: declining interest rates may cause issuers of securities held by the Fund to pay principal earlier than scheduled or to exercise a right to call the securities, forcing the Fund to reinvest in lower yielding securities

•   extension risk: rising interest rates may result in slower than expected principal prepayments, which effectively lengthens the maturity of affected securities, making them more sensitive to interest rate changes

•   default or credit risk: issuers (or guarantors) defaulting on their obligations to pay interest or return principal, being perceived as being less creditworthy or having a credit rating downgraded, or the credit quality or value of any underlying asset declines. The Fund may incur expenses to protect the Fund’s interest in securities experiencing these events. If the Fund invests in securities that are subordinated to other securities, or which represent interests in pools of such subordinated securities, those investments may be disproportionately affected by a default or even a perceived decline in creditworthiness of the issuer.

If, after purchase, the credit rating on a security is downgraded or the credit quality deteriorates, or if the maturity is extended, the Fund’s Sub-Adviser will decide whether the security should be held or sold. Upon the occurrence of certain triggering events or defaults on a security held by the Fund, or if an issuer of such a security has difficulty meeting its obligations, the Fund may become the holder of a restructured security or of underlying assets. In that case, the Fund may become the holder of securities or other assets that it could not otherwise purchase at a time when those assets may be difficult to sell or can be sold only at a loss.

The Fund also may invest in derivatives based on fixed-income instruments.

PORTFOLIO TURNOVER

The Fund may engage in a significant number of short-term transactions, which may lower Fund performance. High turnover rate will not limit a manager’s ability to buy or sell securities for the Fund. Increased turnover (100% or more) results in higher brokerage costs or mark-up charges for the Fund. The Fund ultimately passes these charges on to shareholders. Short-term trading may also result in short-term capital gains, which are taxed as ordinary income to shareholders.

A-4

NOTICE OF PRIVACY POLICY

At Transamerica Premier Funds, protecting your privacy is very important to us. We want you to understand what information we collect and how we use it. We collect and use “nonpublic personal information” in connection with providing our customers with a broad range of financial products and services as effectively and conveniently as possible. We treat nonpublic personal information in accordance with our Privacy Policy.

What Information We Collect and From Whom We Collect It

We may collect nonpublic personal information about you from the following sources:

•   Information we receive from you on applications or other forms, such as your name, address and account number;

•   Information we receive from you on applications or other forms, such as your account balance and purchase/redemption history; and

•   Information we receive from non-affiliated third parties, including consumer reporting agencies.

What Information We Disclose and To Whom We Disclose It

We do not disclose any nonpublic personal information about current or former customers to anyone without their express consent, except as permitted by law. We may disclose the nonpublic personal information we collect, as described above, to persons or companies that perform services on our behalf and to other financial institutions with which we have joint marketing agreements. We will require these companies to protect the confidentiality of your nonpublic personal information and to use it only to perform the services for which we have hired them.

Our Security Procedures

We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted by law to assist in providing products or services to you. We maintain written, electronic and procedural safeguards to protect your nonpublic personal information and to safeguard the disposal of certain consumer information.

If you have any questions about our Privacy Policy, please call 1-800-892-7587, Monday through Friday from 8 a.m. to 7 p.m. Eastern Time.

Note: This Privacy Policy applies only to customers that have a direct relationship with us or our affiliates. If you own shares of Transamerica Premier Funds in the name of a third party such as a bank or broker-dealer, its privacy policy may apply to you instead of ours.

THIS PAGE IS NOT PART OF THIS PROSPECTUS

ADDITIONAL INFORMATION
AND ASSISTANCE            

Transamerica Premier Funds
P.O. Box 219427, Kansas City,
MO 64121-9427
Customer Service: 1-800-89-ASK-US (1-800-892-7587)
www.transamericafunds.com

ADDITIONAL INFORMATION about Transamerica Premier Funds is contained in the annual and semi-annual reports to shareholders and in the Statement of Additional Information (“SAI”) dated May 1, 2009, which is incorporated by reference into this prospectus. In the Transamerica Premier Funds’ annual report, you will find a discussion of the market conditions and investment strategies that significantly affected Transamerica Premier Funds’ performance during the last fiscal year.

You may also call 1-800-89-ASK-US (1-800-892-7587) or visit the Transamerica Premier Funds’ website at www.transamericafunds.com (select Transamerica Premier Funds) to request this additional information about the Transamerica Premier Funds without charge or to make shareholder inquiries.

Other information about Transamerica Premier Funds has been filed with and is available from the U.S. Securities and Exchange Commission (“SEC”). Information about Transamerica Premier Funds (including the SAI) can be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the public reference room may be obtained by calling the SEC at 202-551-8090. Information may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC, Washington, DC 20549-6009, or by electronic request at publicinfo@sec.gov.

Reports and other information about Transamerica Premier Funds are also available on the SEC’s internet site at http://www.sec.gov.

For more information about Transamerica Premier Funds, you may obtain a copy of the SAI or the annual and semi-annual reports, without charge, or to make other inquiries about Transamerica Premier Funds, call or write to Transamerica Premier Funds at the phone number or address listed above.

Distributor: Transamerica Capital, Inc.

The Investment Company Act File Number for Transamerica Investors, Inc. is 811-09010

TRANSAMERICA ASSET MANAGEMENT GROUP
Transamerica Funds
Transamerica Series Trust
Transamerica Investors, Inc.
Transamerica Partners Funds Group
Transamerica Partners Funds Group II (each, a “fund”)

Supplement dated August 4, 2009 to the Prospectuses and Statements of Additional Information

     The following supplements the Prospectus and Statement of Additional Information as applicable for each fund listed below on Schedules I, II and III:

     Rationalization. The fund’s Board has approved a number of initiatives designed to achieve a more cohesive, focused and streamlined fund complex, and has authorized seeking shareholder approval for those initiatives where shareholder approval is required.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed as a “Target Fund” on Schedule I to this Supplement:

     Reorganization. The fund’s Board has approved a reorganization pursuant to which the fund’s assets would be acquired, and its liabilities would be assumed, by the fund (the “Destination Fund”) listed opposite the fund on Schedule I in exchange for shares of the Destination Fund. The fund would then be liquidated, and shares of the Destination Fund would be distributed to fund shareholders.

     Under the reorganization, fund shareholders would receive shares of the Destination Fund with the same aggregate net asset value as their shares of the fund. It is anticipated that no gain or loss for Federal income tax purposes would be recognized by fund shareholders as a result of the reorganization.

     The reorganization is subject to the satisfaction of certain conditions, including approval by fund shareholders (if so indicated on Schedule I). Materials describing the reorganization are expected to be mailed later in 2009 (early 2010 for Transamerica Series Trust funds). If the closing conditions are satisfied, the reorganization is expected to occur during the fourth quarter of 2009 (second quarter of 2010 for Transamerica Series Trust funds). Prior to the reorganization, shareholders can continue to purchase, redeem and exchange shares subject to the limitations described in the fund’s Prospectus.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed on Schedule II to this Supplement:

     Liquidation. The fund’s Board has approved the termination and liquidation of the fund. Effective September 1, 2009, the fund will no longer be accepting purchase orders for its shares. The fund will be liquidated on or about September 30, 2009.

     In order to achieve an orderly liquidation, a portion of the fund’s assets may be converted into cash and/or money market securities prior to September 30, 2009. Should a fund convert its assets to cash and/or money market securities, the fund would no longer be pursuing its stated investment objective.

     The following supplements the Prospectus and Statement of Additional Information for each fund listed on Schedule III to this Supplement:

     New subadviser. The fund’s Board has approved a new subadviser for the fund, as indicated for the fund on Schedule III. In each case the new subadviser is an affiliate of Transamerica. Under the Investment Company Act of 1940, shareholder approval of the agreement with the new subadviser must be obtained, and the Board has authorized seeking such approval. Proxy materials describing the new subadviser are expected to be mailed later in 2009. If shareholder approval is obtained, the new agreement could take effect in the fourth quarter of 2009.

* * *

	Date of Prospectus
Fund	and Statement of Additional Information
Transamerica Funds	Prospectus — March 1, 2009
Transamerica American Century Large Company Value	Statement of Additional Information — July 1, 2009
Transamerica Balanced
Transamerica Convertible Securities
Transamerica Diversified Equity
Transamerica Equity
Transamerica Evergreen Health Care
Transamerica Evergreen International Small Cap
Transamerica Flexible Income
Transamerica Growth Opportunities
Transamerica High Yield Bond
Transamerica Legg Mason Partners All Cap
Transamerica Marsico Growth
Transamerica Marsico International Growth
Transamerica Money Market
Transamerica Science & Technology
Transamerica Templeton Global
Transamerica Value Balanced
Transamerica Series Trust	May 1, 2009
Transamerica American Century Large Company Value VP
Transamerica Balanced VP
Transamerica BlackRock Large Cap Value VP
Transamerica Diversified Equity VP
Transamerica Jennison Growth VP
Transamerica Legg Mason Partners All Cap VP
Transamerica Marsico Growth VP
Transamerica Munder Net 50 VP
Transamerica Science & Technology VP
Transamerica T. Rowe Price Equity Income VP
Transamerica T. Rowe Price Growth Stock VP
Transamerica Templeton Global VP
Transamerica Value Balanced VP
Transamerica Investors, Inc.	May 1, 2009
Transamerica Premier Balanced Fund
Transamerica Premier Cash Reserve Fund
Transamerica Premier Diversified Equity Fund
Transamerica Premier Equity Fund
Transamerica Premier Focus Fund
Transamerica Premier Growth Opportunities Fund
Transamerica Premier High Yield Bond Fund
Transamerica Premier Institutional Bond Fund
Transamerica Premier Institutional Diversified Equity Fund
Transamerica Premier Institutional Equity Fund
Transamerica Premier Institutional Small Cap Value Fund

	Date of Prospectus
Fund	and Statement of Additional Information
Transamerica Partners Funds Group	May 1, 2009
Transamerica Partners Core Bond
Transamerica Partners Growth
Transamerica Partners Large Growth
Transamerica Partners Large Value
Transamerica Partners Total Return Bond
Transamerica Partners Value
Transamerica Partners Funds Group II	May 1, 2009
Transamerica Partners Institutional Core Bond
Transamerica Partners Institutional Growth
Transamerica Partners Institutional Large Growth
Transamerica Partners Institutional Large Value
Transamerica Partners Institutional Total Return Bond
Transamerica Partners Institutional Value

Schedule I

Target Fund(s)	Destination Fund
Transamerica Premier Balanced Fund	Transamerica Balanced
Transamerica Value Balanced
Transamerica Premier Cash Reserve Fund*	Transamerica Money Market
Transamerica Premier Diversified Equity Fund	Transamerica Diversified Equity
Transamerica Premier Institutional Diversified Equity Fund
Transamerica Science & Technology
Transamerica Templeton Global
Transamerica Premier Equity Fund	Transamerica Equity
Transamerica Premier Institutional Equity Fund
Transamerica Premier Focus Fund	Transamerica Legg Mason Partners All Cap
Transamerica Premier Growth Opportunities Fund	Transamerica Growth Opportunities
Transamerica Premier High Yield Bond Fund*	Transamerica High Yield Bond
Transamerica Convertible Securities	Transamerica Flexible Income
Transamerica Partners Value	Transamerica Partners Large Value
Transamerica Partners Growth	Transamerica Partners Large Growth
Transamerica Partners Total Return Bond	Transamerica Partners Core Bond
Transamerica Partners Institutional Value	Transamerica Partners Institutional Large Value
Transamerica Partners Institutional Growth	Transamerica Partners Institutional Large Growth
Transamerica Partners Total Institutional Return Bond	Transamerica Partners Institutional Core Bond

* Requires shareholder approval.

Target Fund(s)	Destination Fund
Transamerica Templeton Global VP	Transamerica Diversified Equity VP
Transamerica Science & Technology VP
Transamerica Munder Net 50 VP*
Transamerica Value Balanced VP	Transamerica Balanced VP
Transamerica American Century Large Company Value VP*	Transamerica BlackRock Large Cap Value VP
Transamerica T. Rowe Price Equity Income VP*
Transamerica Marsico Growth VP	Transamerica Jennison Growth VP
Transamerica T. Rowe Price Growth Stock VP

* Requires shareholder approval.

Schedule II

Fund

Transamerica American Century Large Company Value

Transamerica Evergreen Health Care

Transamerica Evergreen International Small Cap

Transamerica Marsico Growth

Transamerica Marsico International Growth

Transamerica Premier Institutional Bond Fund

Transamerica Premier Institutional Small Cap Value Fund

Schedule III

Fund	Proposed New Subadviser
Transamerica Legg Mason Partners All Cap	Transamerica Investment Management, LLC
Transamerica Legg Mason Partners All Cap VP	Transamerica Investment Management, LLC

Investors Should Retain this Supplement for Future Reference

Transamerica Investors, Inc.

Equity Funds
Transamerica Premier Focus Fund — Investor Class Shares
Transamerica Premier Equity Fund — Investor Class Shares
Transamerica Premier Growth Opportunities Fund — Investor Class Shares
Transamerica Premier Diversified Equity Fund — Investor Class Shares

Combined Equity & Fixed Income Fund
Transamerica Premier Balanced Fund — Investor Class Shares

Fixed Income Funds
Transamerica Premier High Yield Bond Fund — Investor and Institutional Class Shares
Transamerica Premier Cash Reserve Fund — Investor Class Shares

Institutional Funds
Transamerica Premier Institutional Small Cap Value Fund
Transamerica Premier Institutional Diversified Equity Fund
Transamerica Premier Institutional Bond Fund
Transamerica Premier Institutional Equity Fund

STATEMENT OF ADDITIONAL INFORMATION

MAY 1, 2009

TRANSAMERICA PREMIER FUNDS

570 Carillon Parkway
St. Petersburg, FL 33716
1-800-89-ASK-US (1-800-892-7587) (toll free)

About the Statement of Additional Information

Transamerica Investors, Inc. (the “Company”) is an open-end, management investment company of the series type offering a number of portfolios, known collectively as the Transamerica Premier Funds. This Statement of Additional Information (the “SAI”) pertains to each series of the Transamerica Premier Funds (the “Fund” or the “Funds”) listed above. Each Fund is managed separately and has its own investment objective, strategies and policies. Each class of each Fund has its own levels of expenses and charges. This SAI is not a prospectus. It contains information additional to that available in the prospectuses. Please refer to the prospectus first, then to this document. Please read it carefully. Save it for future reference.

About the Prospectuses

This SAI should be read in connection with the current prospectuses dated May 1, 2009, as they may be supplemented from time to time. The prospectuses are available without charge from your sales representative, by writing or calling the Company at the above address or telephone number.

Terms used in the prospectuses are incorporated by reference in this SAI. The Funds’ audited financial statements in the Annual Report to shareholders are incorporated by reference in this SAI. We have not authorized any person to give you any other information.

TABLE OF CONTENTS

INVESTMENT RESTRICTIONS	1
FUNDAMENTAL RESTRICTIONS	1
NON-FUNDAMENTAL RESTRICTIONS	2
INVESTMENT OBJECTIVES AND POLICIES	2
INVESTMENT POLICIES AND PRACTICES	3
BUYING AND SELLING SECURITIES	3
HIGH YIELD (“JUNK”) BONDS AND CERTAIN OTHER FIXED-INCOME SECURITIES	3
CREDIT RATINGS	4
RESTRICTED AND ILLIQUID SECURITIES	4
DERIVATIVES	5
OPTIONS ON SECURITIES AND SECURITIES INDEXES	5
RISKS ASSOCIATED WITH OPTIONS TRANSACTIONS	6
FUTURES CONTRACTS AND OPTIONS ON FUTURES CONTRACTS	7
SWAP TRANSACTIONS	9
INTEREST RATE SWAPS	9
FOREIGN SECURITIES	9
SHORT SALES	10
PURCHASE OF WHEN-ISSUED SECURITIES	10
SEGREGATED ASSETS	11
LENDING OF SECURITIES	11
INDEBTEDNESS	11
BORROWING POLICIES	11
VARIABLE RATE, FLOATING RATE, OR VARIABLE AMOUNT SECURITIES	13
REPURCHASE AGREEMENTS	13
REVERSE REPURCHASE AGREEMENTS AND LEVERAGE	14
MUNICIPAL OBLIGATIONS	14
SMALL CAPITALIZATION STOCKS	14
OVER-THE-COUNTER MARKET	14
U.S. GOVERNMENT OBLIGATIONS	14
MORTGAGE-BACKED AND ASSET-BACKED SECURITIES	15
ZERO COUPON BONDS	16
INVESTMENTS IN OTHER INVESTMENT COMPANIES	16
SPECIAL SITUATIONS	16
CERTIFICATES OF DEPOSIT	17
TIME DEPOSITS	17
BANKERS’ ACCEPTANCE	17
COMMERCIAL PAPER	17
TEMPORARY DEFENSIVE POSITIONS	17
PARTICIPATION INTERESTS IN LOANS	17
INTERNATIONAL ORGANIZATION OBLIGATIONS	18
CUSTODY RECEIPTS	18
PASS-THROUGH SECURITIES	18
OTHER INVESTMENTS	18
PORTFOLIO TURNOVER RATE	18
DISCLOSURE OF PORTFOLIO HOLDINGS	18
INVESTMENT ADVISORY AND OTHER SERVICES	19
DISTRIBUTOR	23
ADMINISTRATOR	24
ADMINISTRATIVE FEES	24
CUSTODIAN AND TRANSFER AGENT	24
FUND TRANSACTIONS AND BROKERAGE	25
DIRECTED BROKERAGE	26
BOARD MEMBERS AND OFFICERS	28
SHAREHOLDER COMMUNICATION PROCEDURES WITH BOARD OF DIRECTORS	45
DISTRIBUTION OF SHARES OF THE FUNDS	47

i

NET ASSET VALUE DETERMINATION	51
PURCHASE, REDEMPTION AND EXCHANGE OF SHARES	53
IRA ACCOUNTS	53
UNIFORM GIFTS TO MINORS	55
INVESTOR SHARE REDEMPTIONS IN EXCESS OF $250,000	55
ARRANGEMENT WITH FIDELITY MANAGEMENT TRUST COMPANY	55
GENERAL INFORMATION	55
TAXES	56
PRINCIPAL SHAREHOLDERS	61
MISCELLANEOUS	63
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	64
CODE OF ETHICS	64
PROXY VOTING POLICIES AND PROCEDURES	64
FINANCIAL STATEMENT	64
BOND RATINGS	64
APPENDIX A	A-1
APPENDIX B	C-1

ii

INVESTMENT RESTRICTIONS

The investment restrictions below have been adopted as fundamental policies of the Funds. Under the Investment Company Act of 1940, as amended (the “1940 Act”), a fundamental policy may not be changed with respect to a Fund without the vote of a majority of the outstanding voting securities (as defined in the 1940 Act) of the Fund. Each Fund will operate as a diversified company within the meaning of the 1940 Act, except Transamerica Premier Focus Fund, which will operate as a non-diversified Fund. Transamerica Premier Focus Fund reserves the right to become a diversified Fund as defined in the 1940 Act. Non-fundamental policies may be changed by a vote of the Board of Directors (the “Board”) of the Company at any time.

FUNDAMENTAL RESTRICTIONS

1. Borrowing

Each Fund may not borrow money, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

2. Senior Securities

Each Fund may not issue any senior security, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

3. Underwriting

Each Fund may not act as an underwriter of securities, within the meaning of the Securities Act of 1933, as amended (the “Securities Act”) except as permitted under the Securities Act and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time. Among other things, to the extent that the Fund may be deemed to be an underwriter within the meaning of the Securities Act, each Fund may act as an underwriter of securities in connection with the purchase and sale of its portfolio securities in the ordinary course of pursuing its investment objective, investment policies and investment program.

4. Real Estate

Each Fund may not purchase or sell real estate or any interests therein, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time. Notwithstanding this limitation, a Fund may, among other things, (i) acquire or lease office space for its own use, (ii) invest in securities of issuers that invest in real estate or interests therein, (iii) invest in mortgage-related securities and other securities that are secured by real estate or interests therein, or (iv) hold and sell real estate acquired by the portfolio as a result of the ownership of securities.

5. Lending

Each Fund may make loans only as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time.

6. Concentration

(all Funds except Transamerica Premier Cash Reserve Fund)

Each Fund may not “concentrate” its investments in a particular industry or group of industries, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time, provided that, without limiting the generality of the foregoing, this limitation will not apply to securities issued or guaranteed as to principal and/or interest by the U.S. Government, its agencies or instrumentalities.

(Transamerica Premier Cash Reserve Fund only)

The Fund may not “concentrate” its investments in a particular industry or group of industries, except as permitted under the 1940 Act, and as interpreted, modified or otherwise permitted by regulatory authority having jurisdiction, from time to time, provided that, without limiting the generality of the foregoing, this limitation will not apply to securities issued or

1

guaranteed as to principal and/or interest by the U.S. Government, its agencies or instrumentalities, except that the Fund may invest without limitation in obligations issued by banks.

7. Commodities

Each Fund may not purchase physical commodities or contracts relating to physical commodities, except as permitted under the 1940 Act, and as interpreted or otherwise permitted by regulatory authority having jurisdiction, from time to time.

NON-FUNDAMENTAL RESTRICTIONS

(A) Securities of Other Investment Companies

No Fund may purchase securities of other investment companies, other than a security acquired in connection with a merger, consolidation, acquisition, reorganization or offer of exchange and except as permitted under the 1940 Act.

(B) Invest for Control

No Fund may invest in companies for the purposes of exercising control or management.

(C) Restricted and Illiquid Securities

No Fund will invest more than 15% (10% for Transamerica Premier Cash Reserve Fund) of its net assets in illiquid investments, which includes most repurchase agreements maturing in more than seven days, currency and interest rate swaps, time deposits with a notice or demand period of more than seven days, certain over-the-counter option contracts, participation interests in loans, securities that are not readily marketable, and restricted securities, unless Transamerica Investment Management, LLC (“TIM” or the “Sub-Adviser”) determines, based upon a continuing review of the trading markets and available reliable price information for the specific security, that such restricted securities are eligible to be deemed liquid under Rule 144A. For purposes of this restriction, illiquid securities are securities that cannot be disposed of by a Fund within seven days in the ordinary course of business at approximately the amount at which the Fund has valued the securities. In no event will any Fund’s investment in illiquid securities, in the aggregate, exceed 15% (10% for Transamerica Premier Cash Reserve Fund) of its assets. If through a change in values, net assets, or other circumstances, any Fund were in a position where more than 15% of its assets were invested in illiquid securities, it would take appropriate steps to protect liquidity.

The Board has adopted guidelines and delegated to the Sub-Adviser the daily function of determining and monitoring the liquidity of restricted securities. The Board, however, will retain oversight over any illiquid holdings by the Funds. When no market, dealer, or matrix quotations are available for a security, illiquid investments are priced at fair value as determined in good faith by a committee appointed by the Board. Since it is not possible to predict with assurance exactly how the market for restricted securities sold and offered under Rule 144A will develop, the Board will carefully monitor each Fund’s investments in these securities, focusing on such important factors, among others, as valuation, liquidity, and availability of information. To the extent that qualified institutional buyers become for a time uninterested in purchasing these restricted securities, this investment practice could have the effect of decreasing the level of liquidity in a Fund.

The purchase price and subsequent valuation of restricted securities normally reflect a discount from the price at which such securities would trade if they were not restricted, since the restriction makes them less liquid. The amount of the discount from the prevailing market prices is expected to vary depending upon the type of security, the character of the issuer, the party who will bear the expenses of registering the restricted securities, and prevailing supply and demand conditions.

INVESTMENT OBJECTIVES AND POLICIES

The investment objectives stated in the prospectuses for each Fund are non-fundamental, which means that the Board may change the investment objectives of the Funds without shareholder approval. The strategies and policies described in the prospectuses are non-fundamental. There can be no assurance that a Fund will, in fact, achieve its objective. Strategies and policies can be changed by the Board without your approval. If any investment goals of a Fund change, you should decide if the Fund still meets your financial needs. Each Fund’s compliance with its investment restrictions and limitations is usually determined at the time of investment.

2

INVESTMENT POLICIES AND PRACTICES

The following discussion of investment policies and practices supplements the discussion of policies and practices found in the prospectuses.

BUYING AND SELLING SECURITIES

In general, the Funds purchase and hold securities for capital growth, current income, or a combination of the two, depending on the Fund’s investment objective. Portfolio changes can result from liquidity needs, securities reaching a price objective, anticipated changes in interest rates, a change in the creditworthiness of an issuer, or from general financial or market developments. Because portfolio changes usually are not tied to the length of time a security has been held, a significant number of short-term transactions may occur.

A Fund may sell one security and simultaneously purchase another of comparable quality. A Fund may simultaneously purchase and sell the same security to take advantage of short-term differentials and bond yields. In addition, a Fund may purchase individual securities in anticipation of relatively short-term price gains.

Portfolio turnover has not been and will not be a consideration in the investment process. The Sub-Adviser buys and sells securities for each Fund whenever it believes it is appropriate to do so. Increased turnover results in higher costs. These costs result from brokerage commissions, dealer mark-ups and other transaction costs on the sale of securities and reinvestment in other securities. Increased turnover may also result in additional short-term capital gains, which are generally subject to tax in the same manner as ordinary income when distributed by a Fund to shareholders that are not tax exempt.

At times, a substantial portion of a Fund’s assets may be invested in securities of which the Fund, by itself or together with other Funds and accounts managed by the Sub-Adviser, holds all or a major portion. Under adverse market or economic conditions or in the event of adverse changes in the financial condition of the issuer, the Fund could find it more difficult to sell these securities when the Sub-Adviser believes it advisable to do so or may be able to sell the securities only at prices lower than if they were more widely held. Under these circumstances, it may also be more difficult to determine the fair value of such securities for purposes of computing the Fund’s net asset value.

Recent market events. The markets are experiencing a period of extreme volatility which has negatively impacted market liquidity conditions. Initially, the concerns on the part of market participants were focused on the subprime segment of the mortgage-backed securities market. However, these concerns have since expanded to include a broad range of mortgage-and asset-backed and other fixed income securities, including those rated investment grade, the U.S. and international credit and interbank money markets generally, and a wide range of financial institutions and markets, asset classes and sectors. As a result, fixed income instruments are experiencing liquidity issues, increased price volatility, credit downgrades, and increased likelihood of default. Securities that are less liquid are more difficult to value and may be hard to dispose of. Domestic and international equity markets have also been experiencing heightened volatility and turmoil, with issuers that have exposure to the real estate, mortgage and credit markets particularly affected. During times of market turmoil, investors tend to look to the safety of securities issued or backed by the U.S. Treasury, causing the prices of these securities to rise, and the yield to decline. These events and the continuing market upheavals may continue to adversely affect the Funds.

HIGH YIELD (“JUNK”) BONDS AND CERTAIN OTHER FIXED-INCOME SECURITIES

Transamerica Premier High Yield Bond Fund purchases high yield bonds (commonly called “junk bonds”). These are lower-rated bonds that involve higher current income but are predominantly speculative because they present a higher degree of credit risk than investment-grade bonds. The other Funds, except Transamerica Premier Cash Reserve Fund, may purchase these securities to a limited extent. The prices of junk bonds tend to be more reflective of prevailing economic and industry conditions, the issuers’ unique financial situations, and the bonds’ coupon than to small changes in the level of interest rates. But during an economic downturn or a period of rising interest rates, highly leveraged companies can have trouble making principal and interest payments, meeting projected business goals, and obtaining additional financing.

Certain Funds may invest in unrated debt securities. Unrated debt, while not necessarily of lower quality than rated securities, may not have as broad a market. Because of the size and perceived demand for debt securities to be issued, among other factors, certain issuers may decide not to pay the cost of getting a rating for their bonds. The creditworthiness

3

of an issuer, as well as any financial institution or other party responsible for payments on the issuer’s security, will be analyzed to determine whether to purchase unrated bonds.

Changes by recognized rating services in their ratings of a fixed-income security and changes in the ability of an issuer to make payments of interest and principal may also affect the value of these investments. Changes in the value of portfolio securities generally will not affect income derived from these securities, but will affect the owning Fund’s net asset value.

The market prices of lower-grade securities are generally less sensitive to interest rate changes than higher-rated investments, but more sensitive to adverse economic or political changes or individual developments specific to the issuer. Periods of economic or political uncertainty and change can be expected to result in volatility of prices of these securities. Past experience with high-yield securities in a prolonged economic downturn may not provide an accurate indication of future performance during such periods. Lower-rated securities may also be harder to sell than higher-rated securities because of negative publicity and investor perceptions of this market, as well as new or proposed laws dealing with high yield securities. For many junk bonds, there is no established retail secondary market. As a result, it may be difficult for the Sub-Adviser to accurately value the bonds because they cannot rely on available objective data.

Lower-rated securities also may have less liquid markets than higher-rated securities, and their liquidity as well as their value may be more severely affected by adverse economic conditions. Adverse publicity and investor perceptions as well as new or proposed laws may also have a greater negative impact on the market for lower rated bonds.

If the credit rating on a security is downgraded or the credit quality deteriorates after purchase by a Fund, or if the maturity of a security is extended after purchase by a Fund, the Sub-Adviser will decide whether the security should be held or sold. However, the Sub-Adviser will monitor the investment to determine whether continued investment in the security will assist in meeting the Fund’s investment objectives.

In order to enforce its rights in the event of a default of these securities, a Fund may be required to participate in various legal proceedings or take possession of and manage assets securing the issuer’s obligations on the securities. This could increase the Fund’s operating expenses and adversely affect the Fund’s net asset value.

Certain investment grade securities in which a Fund may invest share some of the risk factors discussed above with respect to lower-rated securities.

CREDIT RATINGS

Credit ratings are based largely on the issuer’s historical financial condition and the rating agencies’ investment analysis at the time of rating. Consequently, the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition, which may be better or worse than the rating would indicate. Ratings are only the opinions of the companies issuing them and are not guarantees as to quality.

Although securities ratings are considered when making investment decisions, the Sub-Adviser performs its own investment analysis and does not rely principally on the ratings assigned by the rating services. This analysis may include consideration of the issuer’s experience and managerial strength, changing financial condition, borrowing requirements or debt maturity schedules, and its responsiveness to changes in business conditions and interest rates. Relative values based on anticipated cash flow, interest or dividend coverage, asset coverage and earnings prospects are also considered.

In the event that a security is rated by different agencies and receives different ratings from these agencies, the Fund will treat the security as being rated in the highest rating category received from an agency. Credit rating criteria is applied at the time the Fund purchases a security and the Fund may choose not to sell securities that are downgraded below investment grade after their purchases. The Fund’s credit standards also apply to counterparties to over-the-counter derivatives contracts. The Sub-Adviser in its reasonable judgment will determine what rating to assign to unrated securities.

For more detailed information on bond ratings, including gradations within each category of quality, see Appendix A.

RESTRICTED AND ILLIQUID SECURITIES

The Funds may purchase certain restricted securities of U.S. issuers (securities that are not registered under the 1933 Act but can be offered and sold to qualified institutional buyers pursuant to Rule 144A under that Act) and limited amounts of illiquid investments, including illiquid restricted securities.

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Up to 15% of a Fund’s net assets may be invested in securities that are illiquid, except that Transamerica Premier Cash Reserve Fund may only invest 10% of its net assets in such securities. Securities are considered illiquid when there is no readily available market or when they have legal or contractual restrictions on transferability.

Illiquid investments include restricted securities, repurchase agreements that mature in more than seven days, fixed time deposits that mature in more than seven days and participation interests in loans. These investments may be difficult to sell quickly for their fair market value. Transamerica Asset Management, Inc. (“TAM” or the “Investment Adviser”) determines whether a security is liquid or not pursuant to procedures adopted by the Board.

DERIVATIVES

Each Fund, except for Transamerica Premier Cash Reserve Fund, may engage in a variety of transactions using derivatives such as options, futures, forward contracts, and swap transactions. The Funds may purchase, or write, call or put options on securities or on indexes (options) and may enter into interest rate or index futures contracts for the purchase or sale of instruments based on financial indices (futures contracts), options on futures contracts, forward contracts, and interest rate swaps and swap-related products.

By investing in derivatives, the Sub-Adviser may seek to protect a Fund against potentially unfavorable movements in interest rates, currencies or securities prices, or attempt to adjust a Fund’s exposure to changing securities prices, currency rates, interest rates, or other factors that affect securities values. This is done in an attempt to reduce a Fund’s overall investment risk. Although it will not generally be a significant part of a Fund’s strategies, the Sub-Adviser may also use derivatives to enhance returns. Opportunities to enhance returns arise when the derivative does not reflect the fair value of the underlying securities. None of the Funds will use derivatives for leverage (although leverage may result).

Risks in the use of derivatives include: (1) the risk that interest rates and securities prices do not move in the directions expected, in which case the Fund has incurred the cost of the derivative (either its purchase price or, by writing an option, losing the opportunity to profit from increases in the value of the securities covered) with no tangible benefit; (2) imperfect correlation between the price of derivatives and the movements of the securities’ prices or interest rates; (3) the possible absence of a liquid secondary market for any particular derivative at any time (some derivatives are not actively traded but are custom designed to meet the investment needs of a narrow group of institutional investors and can become illiquid if the needs of that group of investors change); (4) the potential loss if the counterparty to the transaction does not perform as promised; and (5) the possible need to defer closing out certain positions to avoid adverse tax consequences, or the inability to close out such positions.

Transamerica Premier Balanced Fund may invest in derivatives with respect to no more than 20% of its assets.

OPTIONS ON SECURITIES AND SECURITIES INDEXES

The Funds may write (i.e., sell) covered call and put options on any securities in which they may invest. A call option written by a Fund obligates the Fund to sell specified securities to the holder of the option at a specified price if the option is exercised at any time before the expiration date. A Fund would normally write a call option in anticipation of a decrease in the market value of securities of the type in which it may invest. All call options written by a Fund are covered, which means that the Fund will own the securities subject to the option so long as the option is outstanding. A Fund’s purpose in writing covered call options is to realize greater income than would be realized on securities transactions alone. However, by writing the call option a Fund might forgo the opportunity to profit from an increase in the market price of the underlying security.

A put option written by a Fund would obligate the Fund to purchase specified securities from the option holder at a specified price if the option is exercised at any time before the expiration date. All put options written by a Fund would be covered, which means that such Fund would have deposited with its custodian cash or liquid securities with a value at least equal to the exercise price of the put option. The purpose of writing such options is to generate additional income for the Fund. However, in return for the option premium, a Fund accepts the risk that it might be required to purchase the underlying securities at a price in excess of the securities’ market value at the time of purchase.

In addition, a Fund may cover a written call option or put option by purchasing an offsetting option or any other option which, by virtue of its exercise price or otherwise, reduces the Fund’s net exposure on its written option position.

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A Fund may also write (sell) covered call and put options on any securities index composed of securities in which it may invest. Options on securities indexes are similar to options on securities, except that the exercise of securities index options requires cash payments and does not involve the actual purchase or sale of securities. In addition, securities index options are designed to reflect price fluctuations in a group of securities or segment of the securities market rather than price fluctuations in a single security.

A Fund may cover call options on a securities index by owning securities whose price changes are expected to be similar to those of the underlying index, or by having an absolute and immediate right to acquire such securities without additional cash consideration (or for additional cash consideration held in a segregated account by its custodian) upon conversion or exchange of other securities in the Fund. A Fund may cover call and put options on a securities index by maintaining cash or liquid securities with a value equal to the exercise price in a segregated account with its custodian.

A Fund may terminate its obligations under an exchange traded call or put option by purchasing an option identical to the one it has written. Obligations under over-the-counter options may be terminated only by entering into an offsetting transaction with the counterparty to such option. Such purchases are referred to as closing purchase transactions.

A Fund may purchase put and call options on any securities in which it may invest or options on any securities index based on securities in which it may invest. A Fund would also be able to enter into closing sale transactions in order to realize gains or minimize losses on options it had purchased.

A Fund would normally purchase call options in anticipation of an increase in the market value of securities of the type in which it may invest. The purchase of a call option would entitle a Fund, in return for the premium paid, to purchase specified securities at a specified price during the option period. A Fund would ordinarily realize a gain if, during the option period, the value of such securities exceeded the sum of the exercise price, the premium paid and transaction costs; otherwise the Fund would realize a loss on the purchase of the call option.

A Fund would normally purchase put options in anticipation of a decline in the market value of its securities (protective puts) or in securities in which it may invest. The purchase of a put option would entitle a Fund, in exchange for the premium paid, to sell specified securities at a specified price during the option period. The purchase of protective puts is designed to offset or hedge against a decline in the market value of a Fund’s securities. Put options may also be purchased by a Fund for the purpose of affirmatively benefiting from a decline in the price of securities which it does not own. A Fund would ordinarily realize a gain if, during the option period, the value of the underlying securities decreased below the exercise price sufficiently to cover the premium and transaction costs; otherwise such a Fund would realize a loss on the purchase of the put option.

A Fund would purchase put and call options on securities indexes for the same purposes as it would purchase options on individual securities.

RISKS ASSOCIATED WITH OPTIONS TRANSACTIONS

There is no assurance that a liquid secondary market will exist for any particular exchange-traded option at any particular time. If a Fund is unable to effect a closing purchase transaction with respect to covered options it has written, the Fund will not be able to sell the underlying securities or dispose of assets held in a segregated account until the options expire or are exercised. Similarly, if a Fund is unable to effect a closing sale transaction with respect to options it has purchased, it will have to exercise the options in order to realize any profit and will incur transaction costs upon the purchase or sale of underlying securities.

Reasons for the absence of a liquid secondary market on an exchange include the following: (i) there may be insufficient trading interest in certain options; (ii) restrictions may be imposed by an exchange on opening transactions or closing transactions or both; (iii) trading halts, suspensions or other restrictions may be imposed with respect to particular classes or series of options; (iv) unusual or unforeseen circumstances may interrupt normal operations on an exchange; (v) the facilities of an exchange or the Options Clearing Corporation may not at all times be adequate to handle current trading volume; or (vi) one or more exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the trading of options (or a particular class or series of options), in which event the secondary market on that exchange (or in that class or series of options) would cease to exist, although outstanding options on that exchange that had been issued by the Options Clearing Corporation as a result of trades on that exchange would continue to be exercisable in accordance with their terms.

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The Funds may purchase and sell both options that are traded on U.S., United Kingdom, and other exchanges and options traded over-the-counter with broker-dealers who make markets in these options. The ability to terminate over-the-counter options is more limited than with exchange-traded options and may involve the risk that broker-dealers participating in such transactions will not fulfill their obligations. Until such time as the staff of the Securities and Exchange Commission (the “SEC”) changes its position, a Fund will treat purchased over-the-counter options and all assets used to cover written over-the-counter options as illiquid securities, except that with respect to options written with primary dealers in U.S. government securities pursuant to an agreement requiring a closing purchase transaction at a formula price, the amount of illiquid securities may be calculated with reference to the formula.

Transactions by a Fund in options on securities and securities indices will be subject to limitations established by each of the exchanges, boards of trade or other trading facilities governing the maximum number of options in each class which may be written or purchased by a single investor or group of investors acting in concert. Thus, the number of options which a Fund may write or purchase may be affected by options written or purchased by other investment advisory clients of the Sub-Adviser of the Funds. An exchange, board of trade or other trading facility may order the liquidation of positions found to be in excess of these limits, and it may impose certain other sanctions.

The writing and purchase of options is a highly specialized activity which involves investment techniques and risks different from those associated with ordinary securities transactions. The successful use of protective puts for hedging purposes depends in part on an ability to anticipate future price fluctuations and the degree of correlation between the options and securities markets.

FUTURES CONTRACTS AND OPTIONS ON FUTURES CONTRACTS

The Funds may purchase and sell futures contracts and may also purchase and write options on futures contracts. A Fund may purchase and sell futures contracts based on various securities (such as U.S. government securities), securities indexes, and other financial instruments and indexes. A Fund will engage in futures or related options transactions only for bona fide hedging purposes as defined below or to increase total returns to the extent permitted by regulations of the Commodity Futures Trading Commission (“CFTC”). All futures contracts entered into by a Fund are traded on U.S. exchanges or boards of trade that are licensed and regulated by the CFTC.

Futures transactions will be limited to the extent necessary to maintain the qualification of these Funds as regulated investment companies. Pursuant to a claim for exemption filed with the CFTC and/or the National Futures Association on behalf of the Funds and their adviser, the Funds and the adviser are not deemed to be a “commodity pool” or “commodity pool operator” under the Commodity Exchange Act and are not subject to registration or regulation as such under the Commodity Exchange Act. By virtue of changes to CFTC regulations, the substantive limitations set forth in the Funds exemption filing with respect to its use of futures contracts are no longer applicable.

Futures Contracts. A futures contract may generally be described as an agreement between two parties to buy or sell particular financial instruments for an agreed price during a designated month (or to deliver the final cash settlement price, in the case of a contract relating to an index or otherwise not calling for physical delivery at the end of trading in the contract).

When interest rates are rising or securities prices are falling, a Fund can seek to offset a decline in the value of its current securities through the sale of futures contracts. When rates are falling or prices are rising, a Fund, through the purchase of futures contracts, can attempt to secure better rates or prices than might later be available in the market when it affects anticipated purchases.

Positions taken in the futures markets are not normally held to maturity, but are instead liquidated through offsetting transactions which may result in a profit or a loss. While a Fund’s futures contracts on securities will usually be liquidated in this manner, it may instead make or take delivery of the underlying securities whenever it appears economically advantageous for the Fund to do so. A clearing corporation associated with the exchange on which futures on securities are traded guarantees that, if still open, the sale or purchase will be performed on the settlement date.

Hedging Strategies. Hedging by use of futures contracts seeks to establish more certainty than would otherwise be possible in the effective price or rate of return on securities that a Fund owns or proposes to acquire. A Fund may, for example, take a short position in the futures market by selling futures contracts in order to hedge against an anticipated rise in interest rates or a decline in market prices that would adversely affect the value of the Fund’s securities. Such futures contracts may include contracts for the future delivery of securities held by the Fund or securities with characteristics similar to those of the Fund’s securities.

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If, in the opinion of the Sub-Adviser, there is a sufficient degree of correlation between price trends for a Fund’s securities and futures contracts based on other financial instruments, securities indices or other indices, the Fund may also enter into such futures contracts as part of its hedging strategy. Although under some circumstances, prices of a Fund’s securities may be more or less volatile than prices of such futures contracts, the Sub-Adviser will attempt to estimate the extent of this difference in volatility based on historical patterns and to compensate for it by having a Fund enter into a greater or lesser number of futures contracts or by attempting to achieve only a partial hedge against price changes affecting the Fund’s securities. When hedging of this character is successful, any depreciation in the value of the Fund’s securities will be substantially offset by appreciation in the value of the futures position. On the other hand, any unanticipated appreciation in the value of the Fund’s securities would be substantially offset by a decline in the value of the futures position.

On other occasions, a Fund may take a long position by purchasing such futures contracts. This would be done, for example, when a Fund anticipates the subsequent purchase of particular securities when it has the necessary cash, but expects the prices or interest rates then available in the applicable market to be less favorable than prices or rates that are currently available.

Options on Futures Contracts. The acquisition of put and call options on futures contracts will give a Fund the right (but not the obligation), for a specified price, to sell or to purchase, respectively, the underlying futures contract at any time during the option period. As the purchaser of an option on a futures contract, a Fund obtains the benefit of the futures position if prices move in a favorable direction but limits its risk of loss in the event of an unfavorable price movement to the loss of the option premium and transaction costs.

The writing of a call option on a futures contract generates a premium which may partially offset a decline in the value of a Fund’s assets. By writing a call option, a Fund becomes obligated, in exchange for the premium, to sell a futures contract, which may have a value higher than the exercise price. Conversely, the writing of a put option on a futures contract generates a premium, which may partially offset an increase in the price of securities that a Fund intends to purchase. However, a Fund becomes obligated to purchase a futures contract, which may have a value lower than the exercise price. Thus, the loss incurred by a Fund in writing options on futures is potentially unlimited and may exceed the amount of the premium received. A Fund will increase transaction costs in connection with the writing of options on futures.

The holder or writer of an option on a futures contract may terminate its position by selling or purchasing an offsetting option on the same series. There is no guarantee that such closing transactions can be effected. A Fund’s ability to establish and close out positions on such options will be subject to the development and maintenance of a liquid market.

Other Considerations. Pursuant to claims for exemption filed with the CFTC and/or the National Futures Association on behalf of the Funds and the Sub-Adviser, the Funds and the Sub-Adviser are not deemed to be a “commodity pool” or “commodity pool operator” under the Commodity Exchange Act and are not subject to registration or regulation as such under the Commodity Exchange Act. As permitted, each Fund will engage in transactions in futures contracts and in related options transactions only to the extent such transactions are consistent with the requirements of the Internal Revenue Code of 1986, as amended (the “Code”), for maintaining its qualification as a regulated investment company for federal income tax purposes.

Transactions in futures contracts and options on futures involve brokerage costs, require margin deposits and, in the case of contracts and options obligating a Fund to purchase securities or currencies, require the Fund to segregate with its custodian liquid securities in an amount equal to the underlying value of such contracts and options.

While transactions in futures contracts and options on futures may reduce certain risks, such transactions themselves entail other risks. Thus, unanticipated changes in interest rates or securities prices may result in a poorer overall performance for a Fund than if it had not entered into any futures contracts or options transactions. In the event of an imperfect correlation between a futures position and the position which the Fund intends to protect, the desired protection may not be obtained and a Fund may be exposed to risk of loss.

Perfect correlation between a Fund’s futures positions and current positions may be difficult to achieve because no futures contracts based on individual equity securities are currently available. The only futures contracts available to these Funds for hedging purposes are various futures on U.S. government securities and securities indexes.

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SWAP TRANSACTIONS

The Funds may enter into privately negotiated swap transactions with other financial institutions in order to take advantage of investment opportunities generally not available in public markets. In general, these transactions involve swapping a return based on certain securities, instruments, or financial indexes with another party, such as a commercial bank, in exchange for a return based on different securities, instruments, or financial indexes.

By entering into swap transactions, a Fund may be able to protect the value of a portion of its securities against declines in market value. A Fund may also enter into swap transactions to facilitate implementation of allocation strategies between different market segments or to take advantage of market opportunities which may arise from time to time.

A Fund may be able to enhance its overall performance if the return offered by the other party to the swap transaction exceeds the return swapped by the Fund. However, there can be no assurance that the return a Fund receives from the counterparty to the swap transaction will exceed the return it swaps to that party.

While a Fund will only enter into swap transactions with counterparties it considers creditworthy, a risk inherent in swap transactions is that the other party to the transaction may default on its obligations under the swap agreement. Each Fund will monitor the creditworthiness of parties with which it has swap transactions. If the other party to the swap transaction defaults on its obligations, a Fund would be limited to contractual remedies under the swap agreement. There can be no assurance that a Fund will succeed when pursuing its contractual remedies. To minimize a Fund’s exposure in the event of default, the Funds will usually enter into swap transactions on a net basis (i.e., the parties to the transaction will net the payments payable to each other before such payments are made). When a Fund enters into swap transactions on a net basis, the net amount of the excess, if any, of the Fund’s obligations over its entitlements with respect to each such swap agreement will be accrued on a daily basis and an amount of liquid assets having an aggregate market value at least equal to the accrued excess will be segregated by the Fund’s custodian. To the extent a Fund enters into swap transactions other than on a net basis, the amount segregated will be the full amount of the Fund’s obligations, if any, with respect to each such swap agreement, accrued on a daily basis. See “Segregated Accounts.”

Swap agreements are considered to be illiquid by the SEC staff and will be subject to the limitations on illiquid investments. See “Restricted and Illiquid Securities.”

To the extent that there is an imperfect correlation between the return a Fund is obligated to swap and the securities or instruments representing such return, the value of the swap transaction may be adversely affected. Therefore, a Fund will not enter into a swap transaction unless it owns or has the right to acquire the securities or instruments representative of the return it is obligated to swap with the counterparty to the swap transaction.

INTEREST RATE SWAPS

The Funds may enter into interest rate swaps for hedging purposes and non-hedging purposes. Since swaps are offset by a segregated account as described below, the Sub-Adviser believes that swaps do not constitute senior securities as defined in the 1940 Act and, accordingly, will not treat them as being subject to the Fund’s borrowing restrictions. The net amount of the excess, if any, of a Fund’s obligations over its entitlement with respect to each interest rate swap will be accrued on a daily basis and an amount of cash or other liquid securities having an aggregate net asset value at least equal to such accrued excess will be maintained in a segregated account by the Fund’s custodian. A Fund will not enter into any interest rate swap unless the credit quality of the unsecured senior debt or the claims-paying ability of the other party to the swap is considered to be investment grade by the Sub-Adviser. If there is a default by the other party to such a transaction, a Fund will have contractual remedies pursuant to the agreement years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. As a result, the swap market has become relatively liquid in comparison with the markets for other similar instruments which are traded in the interbank market.

FOREIGN SECURITIES

The Funds may invest in foreign securities. Foreign securities, other than American Depositary Receipts (“ADRs”), will be held in custody by an approved selected sub-custodian.

Investing in the securities of foreign issuers involves special risks and considerations not typically associated with investing in U.S. companies. These risks and considerations include differences in accounting, auditing and financial reporting standards, generally higher commission rates on foreign securities transactions, the possibility of expropriation or

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confiscatory taxation, adverse changes in investment or exchange control regulations, political instability which could affect U.S. investment in foreign countries and potential restrictions on the flow of international capital and currencies. Foreign issuers may also be subject to less government regulation than U.S. companies. Moreover, the dividends and interest payable on foreign securities may be subject to foreign withholding taxes, thus reducing the net amount of income available for distribution to the Fund’s shareholders. Further, foreign securities often trade with less frequency and volume than domestic securities and, therefore, may exhibit greater price volatility. Because most foreign securities markets close prior to the time as of which the Funds determine their net asset values per share, events subsequent to the close of foreign securities markets may make the closing prices reported on such markets unreliable and require that foreign securities be fair valued in good faith. Fair valuation necessarily entails subjective judgments, and may result in a valuation that is different from the price at which a Fund could sell the security at that time.

Changes in foreign currency exchange rates will affect, favorably or unfavorably, the value of those securities which are denominated or quoted in currencies other than the U.S. dollar. Currency exchange rates generally are determined by the forces of supply and demand in the foreign exchange markets and the relative merits of investments in different countries, actual or perceived changes in interest rates and other complex factors, as seen from an international perspective. Currency exchange rates also can be affected unpredictably by intervention of U.S. or foreign governments or central banks, or the failure to intervene, or by currency controls or political developments in the United States or abroad.

SHORT SALES

The Funds may sell securities which they do not own or own but do not intend to deliver to the buyer (sell short) if, at the time of the short sale, the Fund making the short sale owns or has the right to acquire an equal amount of the security being sold short at no additional cost. These transactions allow the Funds to hedge against price fluctuations by locking in a sale price for securities they do not wish to sell immediately.

A Fund may make a short sale when it decides to sell a security it owns at a currently attractive price. This allows the Fund to postpone a gain or loss for federal income tax purposes and to satisfy certain tests applicable to regulated investment companies under the Code. The Funds will only make short sales if the total amount of all short sales does not exceed 10% of the total assets of the Fund. This limitation can be changed at any time.

When a short sale is effected by selling a security that the Fund does not own, the Fund, in order to deliver the security to the purchaser, borrows the security, typically from a broker-dealer or an institutional investor. The Fund later closes out the position by returning the security to the lender. If the price of the security sold short increases, the Fund would incur a loss; conversely, if the price declines, the Fund will realize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentially unlimited. The Fund may be unable to close out a short position at an acceptable price, and may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. Short selling involves higher transaction costs than typical long-only investing.

A short sale is effected “against the box” if, at all times when the short position is open, the Fund contemporaneously owns or has the right to obtain at no additional cost securities identical to those sold short. In the event that the Fund were to sell securities short “against the box” and the price of such securities were to then increase rather than decrease, the Fund would forego the potential realization of the increased value of the shares sold short.

Transamerica Premier Growth Opportunities Fund and Transamerica Premier Focus Fund may also sell securities short if no more than 2% of a Fund’s total assets is invested in a single short sale position and no more than 10% of the Fund’s total assets is invested in short sale positions.

PURCHASE OF WHEN-ISSUED SECURITIES

The Funds may enter into firm commitment agreements for the purchase of securities on a specified future date. Thus, the Funds may purchase, for example, new issues of fixed-income instruments on a when-issued basis, whereby the payment obligation, or yield to maturity, or coupon rate on the instruments may not be fixed at the time of the transaction. A Fund will not purchase securities on a when-issued basis if, as a result, more than 15% of the Fund’s net assets would be so invested. In addition, the Funds may invest in asset-backed securities on a delayed delivery basis. This reduces the Funds’ risk of early repayment of principal, but exposes the Funds to some additional risk that the transaction will not be consummated.

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When a Fund enters into a firm commitment agreement, liability for the purchase price and the rights and risks of ownership of the security accrue to the Fund at the time it becomes obligated to purchase such security, although delivery and payment occur at a later date. Accordingly, if the market price of the security should decline, the effect of such an agreement would be to obligate the Fund to purchase the security at a price above the current market price on the date of delivery and payment. During the time a Fund is obligated to purchase such security it will be required to segregate assets. See “Segregated Assets.”

SEGREGATED ASSETS

In connection with when-issued securities, firm commitment agreements, futures, the writing of options, and certain other transactions in which a Fund incurs an obligation to make payments in the future, such Fund may be required to segregate assets with its custodian in amounts sufficient to settle the transaction. To the extent required, such segregated assets will consist of liquid securities or other liquid assets. Segregated assets cannot be sold unless they are replaced with other appropriate assets. The commitment of a Fund’s assets to cover obligations could impede portfolio management or the Fund’s ability to meet redemption requests or other current obligations.

LENDING OF SECURITIES

Consistent with applicable regulatory requirements, as a means to earn additional income a Fund may lend its securities to brokers and dealers, and to certain other financial institutions. All loans will be fully collateralized. In connection with the lending of its securities, a Fund will receive as collateral cash, securities issued or guaranteed by the United States government (i.e., Treasury securities), or other collateral permitted by applicable law, which at all times while the loan is outstanding will be maintained in amounts equal to at least 102% of the current market value of the loaned securities, or such lesser percentage as may be permitted by applicable law, as reviewed daily. A Fund lending its securities will receive amounts equal to the interest or dividends paid on the securities loaned and in addition will expect to receive a portion of the income generated by the short-term investment of cash received as collateral or, alternatively, where securities or a letter of credit are used as collateral, a lending fee paid directly to the Fund by the borrower of the securities. Such loans will be terminable by the Fund at any time and will not be made to affiliates of the Sub-Adviser. A Fund may terminate a loan of securities in order to regain record ownership of, and to exercise beneficial rights related to, the loaned securities, including but not necessarily limited to voting or subscription rights, and may, in the exercise of its fiduciary duties, terminate a loan in the event that a vote of holders of those securities is required on a material matter. A Fund must have the right to call the loan and obtain the securities loaned at any time on three days notice. This includes the right to call the loan to enable the Fund to execute shareholder voting rights. Such loans cannot exceed one-third of the Fund’s net assets taken at market value. A Fund may pay reasonable fees to persons unaffiliated with the Fund for services or for arranging such loans. Loans of securities will be made only to firms deemed creditworthy.

A Fund lending securities will incur credit risks as with any extension of credit. The Fund risks loss or delay in recovering the loaned securities should the borrower of securities default, become the subject of bankruptcy proceedings, or otherwise be unable to fulfill its obligations or fail financially. There is also investment risk where a Fund invests any part of the collateral it receives as part of the securities lending program.

INDEBTEDNESS

From time to time, the Funds may purchase the direct indebtedness of various companies (“Indebtedness”) or participation in such Indebtedness. Indebtedness represents a specific commercial loan or portion of a loan which has been given to a company by a financial institution such as a bank or insurance company (“Bank Claims”). The company is typically obligated to repay such commercial loan over a specified time period. By purchasing the Bank Claims, a Fund steps into the shoes of the financial institution which made the loan to the company prior to its restructuring or refinancing. Such Bank Claims purchased by a Fund may be in the form of loans, notes or bonds.

The Funds normally invest in the Indebtedness which has the highest priority of repayment by the company. However, on occasion, lower priority Indebtedness also may be acquired.

Indebtedness of companies may also include Trade Claims. Trade Claims generally represent money due to a supplier of goods or services to the companies issuing indebtedness. Company Indebtedness, including Bank Claims and Trade Claims, may be illiquid (as defined below).

BORROWING POLICIES

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The Funds will not issue senior securities, except as permitted under the 1940 Act. Subject to the Funds’ investment restrictions on borrowing, as discussed in this SAI, a Fund may borrow up to one-third of its total assets. To secure borrowings, a Fund may mortgage or pledge securities in an amount up to one-third of its total assets. If a Fund borrows money, its share price may be subject to greater fluctuation until the borrowing is paid off.

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VARIABLE RATE, FLOATING RATE, OR VARIABLE AMOUNT SECURITIES

The Funds may invest in variable rate, floating rate, or variable amount securities. These are short-term unsecured promissory notes issued by corporations to finance short-term credit needs. They are interest-bearing notes on which the interest rate generally fluctuates on a scheduled basis.

Short-term corporate obligations may also include variable amount master demand notes. Variable amount master notes are obligations that permit the investment of fluctuating amounts by a Fund at varying rates of interest pursuant to direct arrangements between the Fund, as lender, and the borrower. These notes permit daily changes in the amounts borrowed. The Fund has the right to increase the amount under the note at any time up to the full amount provided by the note agreement, or to decrease the amount, and the borrower may repay up to the full amount of the note without penalty. The borrower is typically a large industrial or finance company which also issues commercial paper. Typically these notes provide that the interest rate is set daily by the borrower. The rate is usually the same or similar to the interest rate on commercial paper being issued by the borrower. Because variable amount master notes are direct lending arrangements between the lender and borrower, it is not generally contemplated that such instruments will be traded, and there is no secondary market for these notes, although they are redeemable (and thus immediately repayable by the borrower) at the face value, plus accrued interest, at any time. Accordingly, a Fund’s right to redeem is dependent on the ability of the borrower to pay principal and interest on demand. In connection with master demand note arrangements, the Fund considers earning power, cash flow, and other liquidity ratios of the issuer. The Funds will only invest in master demand notes of U.S. issuers. A Fund will not invest more than 25% of its assets in master demand notes.

REPURCHASE AGREEMENTS

The Funds may enter into repurchase agreements. Repurchase agreements have the characteristics of loans by a Fund, and will be fully collateralized (either with physical securities or evidence of book entry transfer to the account of the custodian bank) at all times. During the term of a repurchase agreement the Fund retains the security subject to the repurchase agreement as collateral securing the seller’s repurchase obligation, continually monitors the market value of the security subject to the agreement, and requires the seller to deposit with the Fund additional collateral equal to any amount by which the market value of the security subject to the repurchase agreement falls below the resale amount provided under the repurchase agreement. The Funds will enter into repurchase agreements only with member banks of the Federal Reserve System, and with primary dealers in United States government securities or their wholly-owned subsidiaries whose creditworthiness has been reviewed and found satisfactory by the Sub-Adviser and which have, therefore, been determined to present minimal credit risk.

Securities underlying repurchase agreements will be limited to certificates of deposit, commercial paper, bankers’ acceptances, or obligations issued or guaranteed by the United States government or its agencies or instrumentalities, in which the Fund may otherwise invest. A Fund will not invest in repurchase agreements maturing in more than seven days if that would result in more than 10% of the Fund’s net assets (5% of net assets for Transamerica Premier Institutional Small Cap Value Fund, Transamerica Premier Institutional Diversified Equity Fund, Transamerica Premier Institutional Bond Fund and Transamerica Premier Institutional Equity Fund) being so invested when taking into account the remaining days to maturity of its existing repurchase agreements.

If a seller of a repurchase agreement defaults and does not repurchase the security subject to the agreement, the Fund would look to the collateral security underlying the seller’s repurchase agreement, including the securities subject to the repurchase agreement, for satisfaction of the seller’s obligation to the Fund. In such event, the Fund might incur disposition costs in liquidating the collateral and might suffer a loss if the value of the collateral declines. In addition, if bankruptcy proceedings are instituted against a seller of a repurchase agreement, realization upon the collateral may be delayed or limited. If the seller is unable to make a timely repurchase, the expected proceeds could be delayed, or the Fund could suffer a loss in principal or current interest, or incur costs in liquidating the collateral. The Funds have established procedures to evaluate the creditworthiness of repurchase agreement counterparties.

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REVERSE REPURCHASE AGREEMENTS AND LEVERAGE

The Funds may enter into reverse repurchase agreements with Federal Reserve member banks and U.S. securities dealers from time to time. In a reverse repurchase transaction the Fund sells securities and simultaneously agrees to repurchase them at a price which reflects an agreed-upon rate of interest.

Reverse repurchase agreements may be a form of leverage which increases the opportunity for gain and the risk of loss for a given change in market value. In addition, the gains or losses will cause the net asset value of a Fund’s shares to rise or fall faster than would otherwise be the case. There may also be a risk of delay in the recovery of the underlying securities if the opposite party has financial difficulties. A Fund’s obligations under all borrowings, including reverse repurchase agreements, will not exceed the amounts permitted by applicable law.

During the time a reverse repurchase agreement is outstanding, each Fund that has entered into such an agreement maintains a segregated account with its Custodian containing cash or other liquid securities having a value at least equal to the repurchase price under the reverse repurchase agreement.

MUNICIPAL OBLIGATIONS

The Funds may invest in municipal obligations. The equity Funds may invest in such obligations as part of their cash management techniques. As with other fixed income securities, the value of municipal obligations can be affected by changes in the actual or perceived credit quality of the issuers. The credit quality of a municipal obligation can be affected by, among other factors: a) the financial condition of the issuer or guarantor; b) the issuer’s future borrowing plans and sources of revenue; c) the economic feasibility of the revenue bond project or general borrowing purpose; d) political or economic developments in the region or jurisdiction where the security is issued; and e) the liquidity of the security. Because municipal obligations are generally traded over the counter, the liquidity of a particular issue often depends on the willingness of dealers to make a market in the security. The liquidity of some municipal issues can be enhanced by demand features which enable the Fund to demand payment from the issuer or a financial intermediary on short notice.

SMALL CAPITALIZATION STOCKS

Except for Transamerica Premier Cash Reserve Fund, the Funds may invest in small capitalization stocks. The securities of small companies are usually less actively followed by analysts and may be under-valued by the market, which can provide significant opportunities for capital appreciation; however, the securities of such small companies may also involve greater risks and may be subject to more volatile market movements than securities of larger, more established companies. The securities of small companies are often traded in the over-the counter market, and might not be traded in volumes typical of securities traded on a national securities exchange. Thus, the securities of small companies are likely to be subject to more abrupt or erratic market movements than securities of larger, more established companies.

OVER-THE-COUNTER MARKET

The Funds may invest in over-the-counter stocks. Generally, the volume of trading in an unlisted or over-the-counter common stock is less than the volume of trading in a listed stock. Low trading volumes may make it difficult to find a buyer or seller for the securities of some companies. This will have an effect on the purchase or selling price of a stock.

U.S. GOVERNMENT OBLIGATIONS

Securities issued or guaranteed as to principal and interest by the United States government include a variety of Treasury securities, which differ in their interest rates, maturities and times of issuance. Treasury Bills have a maturity of one year or less; Treasury Notes have maturities of one to ten years; and Treasury Bonds can be issued with any maturity period but generally have a maturity of greater than ten years. Agencies of the United States government which issue or guarantee obligations include, among others, the Export-Import Bank of the United States, Farmers Home Administration, Federal Housing Administration, Government National Mortgage Association, Maritime Administration, Small Business Administration and The Tennessee Valley Authority. In addition, in response to the recent financial crisis, the Federal Deposit Insurance Corporation has entered into a program whereby it guarantees debt issued by non-governmental issuers. Obligations of instrumentalities of the United States government include securities issued or guaranteed by, among others, banks of the Farm Credit System, the Federal National Mortgage Association, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation, Student Loan Marketing Association, Federal Intermediate Credit Banks, Federal Land Banks,

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Banks for Cooperatives, and the U.S. Postal Service. Some of these securities are supported by the full faith and credit of the U.S. Treasury; others are supported by the right of the issuer to borrow from the Treasury, while still others are supported only by the credit of the instrumentality.

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES

The Funds may invest in mortgage-backed and asset-backed securities. Mortgage-backed and asset-backed securities are generally securities evidencing ownership or interest in pools of many individual mortgages or other loans. Part of the cash flow of these securities is from the early payoff of some of the underlying loans. The specific amount and timing of such prepayments is difficult to predict, creating prepayment risk. For example, prepayments on Government National Mortgage Association certificates (“GNMA”s) are more likely to increase during periods of declining long-term interest rates because borrowers tend to refinance when interest rates drop. In the event of prepayments, the Funds may be required to invest these proceeds at a lower interest rate, causing them to earn less than if the prepayments had not occurred. Prepayments are more likely to decrease during periods of rising interest rates, causing the expected average life of the underlying mortgages to become longer. This variability of prepayments will tend to limit price gains when interest rates drop and to exaggerate price declines when interest rates rise.

The repayment of certain mortgage-related securities depends primarily on the cash collections received from the issuer’s underlying asset portfolio and, in certain cases, the issuer’s ability to issue replacement securities (such as asset-backed commercial paper). As a result, there could be losses to the Fund in the event of credit or market value deterioration in the issuer’s underlying portfolio, mismatches in the timing of the cash flows of the underlying asset interests and the repayment obligations of maturing securities, or the issuer’s inability to issue new or replacement securities. This is also true for other asset-backed securities.

Unlike mortgage-backed securities issued or guaranteed by the U. S. Government or one of its sponsored entities, mortgage-backed securities issued by private issuers do not have a government or government-sponsored entity guarantee, but may have credit enhancement provided by external entities such as banks or financial institutions or achieved through the structuring of the transaction itself. Examples of such credit support arising out of the structure of the transaction include the issue of senior and subordinated securities (e.g., the issuance of securities by a special purpose vehicle in multiple classes or “tranches,” with one or more classes being senior to other subordinated classes as to the payment of principal and interest, with the result that defaults on the underlying mortgage loans are borne first by the holders of the subordinated class); creation of “reserve funds” (in which case cash or investments, sometimes funded from a portion of the payments on the underlying mortgage loans, are held in reserve against future losses); and “over-collateralization” (in which case the scheduled payments on, or the principal amount of, the underlying mortgage loans exceeds that required to make payment of the securities and pay any servicing or other fees). However, there can be no guarantee that credit enhancements, if any, will be sufficient to prevent losses in the event of defaults on the underlying mortgage loans.

In addition, mortgage-backed securities that are issued by private issuers are not subject to the underwriting requirements for the underlying mortgages that are applicable to those mortgage-backed securities that have a government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage-backed securities may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics than government or government-sponsored mortgage-backed securities and have wider variances in a number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon rates and maturities of the underlying mortgage loans in a private-label mortgage-backed securities pool may vary to a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments on their loans. For these reasons, the loans underlying these securities have had in many cases higher default rates than those loans that meet government underwriting requirements.

The risk of non-payment is greater for mortgage-backed securities that are backed by mortgage pools that contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan repayments may include a general economic turn-down, high unemployment, a general slowdown in the real estate market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage payments by holders of adjustable rate mortgages.

Privately issued mortgage-backed securities are not traded on an exchange and there may be a limited market for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors. Without an active trading market, mortgage-backed securities held in a Fund’s portfolio may be particularly difficult to value because of the complexities involved in assessing the value of the underlying mortgage loans.

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Asset-backed securities have many of the same characteristics and risks as the mortgage-related securities described above, except that asset-backed securities may be backed by non-real-estate loans, leases or receivables such as auto, credit card or home equity loans.

Certain mortgage-or asset backed securities may provide, upon the occurrence of certain triggering events or defaults, for the investors to become the holders of the underlying assets. In that case the Fund may become the holder of securities that it could not otherwise purchase, based on its investment strategies or its investment restrictions and limitations, at a time when such securities may be difficult to dispose of because of adverse market conditions.

ZERO COUPON BONDS

The Funds may invest in zero-coupon bonds and payment-in-kind bonds. Zero-coupon bonds are issued at a significant discount from their principal amount and may pay interest either only at maturity, or subsequent to the issue date prior to maturity, rather than at regular intervals during the life of the security. Payment-in-kind bonds allow the issuer, at its option, to make current interest payments on the bonds either in cash or in additional bonds. The values of zero-coupon bonds and payment-in-kind bonds are subject to greater fluctuation in response to changes in market interest rates than bonds that pay interest in cash currently. Both zero-coupon bonds and payment-in-kind bonds allow an issuer to avoid the need to generate cash to meet current interest payments. Accordingly, such bonds may involve greater credit risks than bonds paying interest currently. Even though such bonds do not pay current interest in cash, a Fund nonetheless is required to accrue interest income on these investments and to distribute the interest income at least annually to shareholders. Thus, the Fund could be required at times to liquidate other investments in order to satisfy its distribution requirements.

INVESTMENTS IN OTHER INVESTMENT COMPANIES

The Funds may invest in the securities of other investment companies, including open-end mutual funds, closed-end funds, unit investment trusts, private investment companies and offshore investment companies. An investment in an investment company involves risks similar to those of investing directly in the investment company’s portfolio securities, including the risk that the value of the portfolio securities may fluctuate in accordance with changes in the financial condition of their issuers, the value of stocks and other securities generally, and other market factors.

In addition, investing in the securities of other investment companies involves certain costs, and expenses for that Fund. If the Fund invests in another investment company, the Fund will indirectly bear its proportionate share of the advisory fees and other operating expenses of such investment company, which are in addition to the advisory fees and other operational expenses incurred by the Fund. In addition, the Fund could incur charges in connection with purchasing or redeeming an investment company security. An investment in the shares of a closed-end investment company may also involve the payment of a substantial premium over, while sales of such shares may be made at a substantial discount from, the net asset value of the issuers’ portfolio securities.

The 1940 Act provides that the Fund may not purchase or otherwise acquire the securities of other “registered investment companies” (as defined in the 1940 Act) if, as a result of such purchase or acquisition, it would own: (i) more than 3% of the total outstanding voting stock of the acquired investment company; (ii) securities issued by any one investment company having a value in excess of 5% of the fund’s total assets; or (iii) securities issued by all investment companies having an aggregate value in excess of 10% of the fund’s total assets. Certain exceptions may be available from these limits such as when the Fund invests in an exchange-traded fund or a money market fund.

The Fund will invest in the securities of other investment companies, including private investment companies, when, in the Sub-Adviser’s judgment, the potential benefits of the investment justify the expense and risk of investing in such investment companies.

SPECIAL SITUATIONS

The Funds may invest in “special situations” from time to time. A special situation arises when, in the opinion of the Sub-Adviser, the securities of a particular issuer will be recognized and appreciate in value due to a specific development with respect to that issuer. Developments creating a special situation might include, among others, a merger proposal or buyout, a leveraged recapitalization, a new product or process, a technological breakthrough, a management change or other extraordinary corporate event, or differences in market supply of and demand for the security. Investment in special situations may carry an additional risk of loss in the event that the anticipated development does not occur or does not attract the expected attention. It is not the policy of any of the Funds to select investments based primarily on the possibility of one or more of these investment techniques and opportunities being presented.

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Each of the Funds may invest in cash or cash equivalents for temporary or defensive purposes. The following may be considered as such cash or cash equivalents:

CERTIFICATES OF DEPOSIT

Certificates of deposit are generally short-term, interest-bearing negotiable certificates issued by banks, savings and loan associations or savings banks against funds deposited in the issuing institution.

TIME DEPOSITS

Time deposits are deposits in a bank or other financial institution for a specified period of time at a fixed interest rate for which a negotiable certificate is not received. Certain time deposits may be considered illiquid.

BANKERS’ ACCEPTANCE

A bankers’ acceptance is a draft drawn on a commercial bank by a borrower, usually in connection with an international commercial transaction (to finance the import, export, transfer or storage of goods). The borrower is liable for payment as well as the bank, which unconditionally guarantees to pay the draft at its face amount on the maturity date. Most acceptances have maturities of six months or less and are traded in secondary markets prior to maturity.

COMMERCIAL PAPER

Commercial paper refers to short-term, unsecured promissory notes issued by corporations and other issuers to finance short-term credit needs. Commercial paper is usually sold on a discount basis and has a maturity at the time of issuance not exceeding 270 days.

TEMPORARY DEFENSIVE POSITIONS

Each Fund may depart from its principal investment strategies in response to adverse market, economic or political conditions by taking temporary defensive positions in any type of money market instruments and short-term debt securities or cash without regard to any percentage limitations. If the Fund takes a temporary defensive position, it may be unable to achieve its investment objective.

PARTICIPATION INTERESTS IN LOANS

A participation interest in a loan entitles the purchaser to receive a portion of principal and interest payments due on a commercial loan extended by a bank to a specified company. The purchaser of such an interest has no recourse against the bank if payments of principal and interest are not made by the borrower and generally relies on the bank to administer and enforce the loan’s terms.

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INTERNATIONAL ORGANIZATION OBLIGATIONS

International organization obligations include obligations of those organizations designated or supported by U.S. or foreign government agencies to promote economic reconstruction and development, international banking, and related government agencies. Examples include the International Bank for Reconstruction and Development (the World Bank), the European Coal and Steel Community, the Asian Development Bank, and the InterAmerican Development Bank.

CUSTODY RECEIPTS

A Fund may acquire custody receipts in connection with securities issued or guaranteed as to principal and interest by the U.S. government, its agencies, authorities or instrumentalities. Such custody receipts evidence ownership of future interest payments, principal payments or both on certain notes or bonds issued by the U.S. government, its agencies, authorities or instrumentalities. These custody receipts are known by various names, including Treasury Receipts, Treasury Investors Growth Receipts (TIGRs), and Certificates of Accrual on Treasury Securities (CATS). For certain securities law purposes, custody receipts are not considered U.S. government securities.

PASS-THROUGH SECURITIES

The Funds may invest in mortgage pass-through securities such as Government National Mortgage Association (GNMA) certificates or Federal National Mortgage Association (FNMA) and other mortgage-backed obligations, or modified pass-through securities such as collateralized mortgage obligations issued by various financial institutions. In connection with these investments, early repayment of investment principal arising from prepayments of principal on the underlying mortgage loans due to the sale of the underlying property, the refinancing of the loan, or foreclosure may expose the Fund to a lower rate of return upon reinvestment of the principal. Prepayment rates vary widely and may be affected by changes in market interest rates. In periods of falling interest rates, the rate of prepayment tends to increase, thereby shortening the actual average life of the mortgage-related security. Conversely, when interest rates are rising, the rate of prepayment tends to decrease, thereby lengthening the actual average life of the mortgage-related security. Accordingly, it is not possible to accurately predict the average life of a particular pool of pass-through securities. Reinvestment of prepayments may occur at higher or lower rates than the original yield on the certificates. Therefore, the actual maturity and realized yield on pass-through or modified pass-through mortgage-related securities will vary based upon the prepayment experience of the underlying pool of mortgages. For purposes of calculating the average life of the assets of the relevant Fund, the maturity of each of these securities will be the average life of such securities based on the most recent or estimated annual prepayment rate.

OTHER INVESTMENTS

In addition to the foregoing, the Funds may invest in instruments that exist or that may develop in the future if the manager or the Sub-Adviser, as applicable, believe such instruments to be commensurate with appropriate risk assumption and pursuit of the Funds’ investment objective.

PORTFOLIO TURNOVER RATE

Changes may be made in a Fund’s portfolio consistent with the investment objective and policies of the Fund whenever such changes are believed to be in the best interests of the Fund and its shareholders, and each Fund will be managed without regard to its portfolio turnover rate. The portfolio turnover rates for all of the Funds may vary greatly from year to year as well as within a particular year, and may be affected by cash requirements for redemptions of shares. High portfolio turnover rates will generally result in higher transaction costs to a Fund, including brokerage commissions, and may have adverse tax consequences.

The portfolio turnover rate for each of the Funds is calculated by dividing the lesser of a Fund’s purchases or sales of portfolio securities for the year by the monthly average value of the securities. The SEC requires that the calculation exclude all securities whose remaining maturities at the time of acquisition are one year or less.

DISCLOSURE OF PORTFOLIO HOLDINGS

It is the policy of the Funds to protect the confidentiality of their holdings and prevent the selective disclosure of non-public information about the Funds’ portfolio holdings. The Funds’ service providers are required to comply with this policy. No non-public information concerning the portfolio holdings of the Funds may be disclosed to any unaffiliated third party, except as provided below. The Board has adopted formal procedures governing compliance with the Funds’ policies.

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The Funds, or their duly authorized service providers, may publicly disclose holdings of all Funds in accordance with regulatory requirements, such as periodic portfolio disclosure in filings with the SEC. A summary or list of a Fund’s completed purchases and sales may only be made available after the public disclosure of a Fund’s portfolio holdings.

The Funds publish all portfolio holdings on a quarterly basis on their website at www.transamericafunds.com approximately 25 days after the end of each calendar quarter. Such information generally remains online for six months or as otherwise consistent with applicable regulations. The day following such publication, the information is deemed to be publicly disclosed for the purposes of the policies and procedures adopted by the Funds. The Funds may then forward the information to investors and consultants requesting it.

There are numerous mutual fund evaluation services such as S&P, Morningstar, Inc. (“Morningstar”) or Lipper, Inc. (“Lipper”) and due diligence departments of broker-dealers and wire houses that regularly analyze the portfolio holdings of mutual funds in order to monitor and report on various attributes including style, capitalization, maturity, yield, beta, etc. These services and departments then distribute the results of their analysis to the public, paid subscribers and/or in-house brokers. In order to facilitate the review of the Funds by these services and departments, the Funds may distribute (or authorize their service providers to distribute) portfolio holdings to such services and departments before their public disclosure is required or authorized provided that: (i) the recipient does not distribute the portfolio holdings or results of the analysis to third parties, other departments or persons who are likely to use the information for purposes of purchasing or selling the Funds before the portfolio holdings or results of the analysis become public information; and (ii) the recipient signs a written confidentiality agreement. Persons and entities unwilling to execute an acceptable confidentiality agreement may only receive portfolio holdings information that has otherwise been publicly disclosed. Neither the Funds nor their service providers receive any compensation from such services and departments. Subject to such departures as the Funds’ investment adviser’s compliance department believes reasonable and consistent with reasonably protecting the confidentiality of the portfolio information, each confidentiality agreement should generally provide that, among other things: the portfolio information is the confidential property of the Funds (and its service provider, if applicable) and may not be shared or used directly or indirectly for any purpose except as expressly provided in the confidentiality agreement; the recipient of the portfolio information agrees to limit access to the portfolio information to its employees (and agents) who, on a need to know basis, are: (1) authorized to have access to the portfolio information; and (2) subject to confidentiality obligations, including duties not to trade on non-public information, no less restrictive than the confidentiality obligations contained in the Confidentiality Agreement; and upon written request, the recipient agrees to promptly return or destroy, as directed, the portfolio information.

The Board and an appropriate officer of the investment adviser’s compliance department or the Funds’ Chief Compliance Officer (“CCO”) may, on a case-by-case basis, impose additional restrictions on the dissemination of portfolio information and waive certain requirements. To the extent required by law, the CCO reports to the Board violations of the Funds’ policies and procedures on disclosure of portfolio holdings.

In addition, separate account and unregistered product clients of TAM, the sub-adviser of the Funds, or its respective affiliates generally have access to information regarding the portfolio holdings of their own accounts. Prospective clients may also have access to representative portfolio holdings. These clients and prospective clients are not subject to the portfolio holdings disclosure policies described above. Some of these separate accounts and unregistered product clients have substantially similar or identical investment objectives and strategies to certain funds, and therefore may have substantially similar or nearly identical portfolio holdings as those funds.

INVESTMENT ADVISORY AND OTHER SERVICES

Transamerica Premier Funds has entered into an Investment Advisory Agreement (the “Advisory Agreement”) on behalf of each Fund with TAM, located at 570 Carillon Parkway, St. Petersburg, FL 33716. TAM supervises each Fund’s investments and conducts its investment program. TAM has hired TIM, at 11111 Santa Monica Blvd, Suite 820, Los Angeles, CA 90025 to furnish investment advice and recommendations and has entered into a sub-advisory agreement with TIM.

TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) (“Western Reserve”) and AUSA Holding Company (23%) (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group.

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TIM is owned by Transamerica Investment Services, Inc. (“TISI”), at the same address, which is a wholly owned subsidiary of Transamerica Corporation, 600 Montgomery Street, San Francisco, CA 94111. Transamerica Corporation is owned by AEGON NV.

Investment Adviser Compensation

TAM receives compensation calculated daily and paid monthly from the Funds at the annual rates indicated below (expressed as a specified percentage of the Funds’ average daily net assets). The table below lists those percentages by Fund.

Fund Name	Percentage of Average Daily Net Assets
Transamerica Premier Balanced Fund – Investor Class Shares	0.75% for the first $1 billion of assets in the Fund
	0.72% of the next $1 billion
	0.70% of assets in excess of $2 billion
Transamerica Premier Cash Reserve Fund – Investor Class Shares	0.33%
Transamerica Premier Diversified Equity Fund – Investor Class Shares	0.75% for the first $1 billion of assets in the Fund
	0.72% of the next $1 billion
	0.70% of assets in excess of $2 billion
Transamerica Premier Equity Fund – Investor Class Shares	0.85% for the first $1 billion of assets in the Fund
	0.82% of the next $1 billion
	0.80% of assets in excess of $2 billion
Transamerica Premier Focus Fund — Investor	0.85% for the first $1 billion of assets in the Fund
Class Shares	0.82% of the next $1 billion
	0.80% of assets in excess of $2 billion
Transamerica Premier Growth Opportunities	0.85% for the first $1 billion of assets in the Fund
Fund – Investor Class Shares	0.82% of the next $1 billion
	0.80% of assets in excess of $2 billion
Transamerica Premier High Yield Bond Fund – Investor Class Shares and Institutional Class Shares	0.53%
Transamerica Premier Institutional Bond Fund	0.43%
Transamerica Premier Institutional Diversified Equity Fund	0.73%
Transamerica Premier Institutional Equity Fund	0.73%
Transamerica Premier Institutional Small Cap Value Fund	0.83%

Advisory Agreement

For each Fund, the duties and responsibilities of the investment adviser are specified in the Fund’s Advisory Agreement. Pursuant to the Advisory Agreement for each Fund, TAM, subject to the supervision of the Directors and in conformity with the stated policies of the Funds, manages the operations of each Fund. TAM is authorized to enter into sub-advisory agreements for investment advisory services in connection with the management of each Fund. TAM continues to have responsibility for all investment advisory services furnished pursuant to all sub-advisory agreements.

The Advisory Agreement is not assignable and may be terminated without penalty upon 60 days’ written notice at the option of either the Fund, TAM or by a vote of shareholders of the applicable Fund. The Advisory Agreement provides that it can be continued from year to year so long as such continuance is specifically approved annually (a) by the Board or by a majority of the outstanding shares of each Fund and (b) by a majority vote of the Directors who are not parties to the Advisory Agreement or interested persons of any such party cast in person at a special meeting called for such purposes.

The Advisory Agreement also provides that TAM shall not be liable to the Funds or to any shareholder for any error of judgment or mistake of law or for any loss suffered by a Fund or by any shareholder in connection with matters to which the Advisory Agreement relates, except for a breach of fiduciary duty or a loss resulting from willful misfeasance, bad faith, gross negligence or reckless disregard on the part of TAM in the performance of its duties thereunder.  

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Each Fund pays its allocable share of the fees and expenses of a Fund’s non-interested directors, custodian and transfer agent fees, brokerage commissions and all other expenses in connection with the execution of its portfolio transactions, administrative, clerical, recordkeeping, bookkeeping, legal, auditing and accounting expenses, interest and taxes, expenses of preparing tax returns, expenses of shareholders’ meetings and preparing, printing and mailing proxy statements (unless otherwise agreed to by the funds or TAM), expenses of preparing and typesetting periodic reports to shareholders (except for those reports the funds permit to be used as sales literature), and the costs, including filing fees, of renewing or maintaining registration of fund shares under federal and state law.

Expense Limitation

TAM has entered into an expense limitation agreement through April 30, 2010 with Transamerica Investors, Inc. on behalf of the Funds, pursuant to which TAM has agreed to reimburse a Fund’s expenses or waive fees, or both, whenever, in any fiscal year, the total cost to a Fund of normal operating expenses chargeable to the Fund, including the investment advisory fee, but excluding brokerage commissions, interest, taxes and extraordinary expenses, exceeds a certain percentage of the Fund’s average daily net assets. That percentage is listed by Fund in the following table, as specified for that Fund (“expense cap”).

Fund Name	Expense Cap
Transamerica Premier Balanced Fund		1.10	%
Transamerica Premier Diversified Equity Fund		1.15	%
Transamerica Premier Cash Reserve Fund		0.25	%
Transamerica Premier Focus Fund		1.40	%
Transamerica Premier Equity Fund		1.15	%
Transamerica Premier Growth Opportunities Fund		1.40	%
Transamerica Premier High Yield Bond Fund (Investor Class)		0.90	%
Transamerica Premier High Yield Bond Fund (Institutional Class)		0.65	%
Transamerica Premier Institutional Bond Fund		0.45	%
Transamerica Premier Institutional Diversified Equity Fund		0.75	%
Transamerica Premier Institutional Equity Fund		0.75	%
Transamerica Premier Institutional Small Cap Value Fund		0.85	%

Total Advisory Fees Paid by the Funds

The following table sets forth the total amounts the Funds paid to TAM, and reimbursements made by TAM to the Funds, if any, for the fiscal year ended December 31, 2006, 2007 and 2008. (Prior to March 1, 2008, advisory fees were paid to TIM).

	Advisory		Advisory Fee
Transamerica Premier Funds1	Fee		Waived or Expense		Advisory Fee
Fiscal Year	Earned		Reimbursed2		Net Received
Transamerica Premier Balanced Fund
2006	$	1,928,934	$	0	$	1,928,934
2007	$	2,488,549	$	0	$	2,488,549
2008	$	2,833,194	$	542,072	$	2,291,122
Transamerica Premier Cash Reserve Fund
2006	$	164,047	$	216,203	$	(52,156	)
2007	$	276,132	$	289,088	$	(12,956	)
2008	$	272,156	$	266,642	$	5,514

21

	Advisory		Advisory Fee
Transamerica Premier Funds1	Fee		Waived or Expense		Advisory Fee
Fiscal Year	Earned		Reimbursed2		Net Received
Transamerica Premier Diversified Equity Fund
2006	$	953,671	$	0	$	953,671
2007	$	1,503,398	$	0	$	1,503,398
2008	$	1,865,660	$	357,220	$	1,508,440
Transamerica Premier Equity Fund
2006	$	3,148,486	$	0	$	3,148,486
2007	$	5,622,209	$	0	$	5,622,209
2008	$	7,450,599	$	1,368,752	$	6,081,847
Transamerica Premier Focus Fund
2006	$	574,467	$	0	$	574,467
2007	$	532,840	$	0	$	532,840
2008	$	584,988	$	0	$	584,988
Transamerica Premier Growth Opportunities Fund
2006	$	887,550	$	0	$	887,550
2007	$	824,561	$	0	$	824,560
2008	$	908,354	$	0	$	908,354
Transamerica Premier High Yield Bond Fund
2006	$	599,406	$	35,863	$	563,543
2007	$	515,145	$	51,576	$	463,569
2008	$	255,176	$	60,457	$	194,719
Transamerica Premier Institutional Bond Fund
2006	$	4,450	$	54,808	$	(50,358	)
2007	$	4,647	$	62,632	$	(57,985	)
2008	$	4,757	$	55,885	$	(51,128	)
Transamerica Premier Institutional Diversified Equity Fund
2006	$	4,262	$	47,608	$	(43,346	)
2007	$	4,923	$	55,786	$	(50,863	)
2008	$	4,385	$	48,803	$	(44,418	)
Transamerica Premier Institutional Equity Fund
2006	$	359,509	$	86,523	$	272,986
2007	$	517,430	$	105,611	$	411,819
2008	$	741,049	$	104,875	$	636,174
Transamerica Premier Institutional Small Cap Value Fund
2006	$	5,171	$	48,783	$	(43,612	)
2007	$	8,346	$	55,462	$	(47,116	)
2008	$	56,004	$	74,300	$	(18,296	)

1	Presentation is on a Fund level, not a class level.
2	Assumes order of reimbursement/waiver is for class-specific expenses first, then waiver of advisory fees.

SUB-ADVISER

The Sub-Adviser will: (1) supervise and manage the investments of each Fund and direct the purchase and sale of its investment securities; and (2) see that investments follow the investment objectives and comply with government regulations. The Sub-Adviser is also responsible for the selection of brokers and dealers to execute transactions for each Fund. Some of these brokers or dealers may be affiliated persons of the Company, the Sub-Adviser, Administrator, or the Distributor. Although it is the Company’s policy to seek the best price and execution for each transaction, the Sub-Adviser may give consideration to brokers and dealers who provide the Funds with statistical information and other services in addition to transaction services. See “Directed Brokerage” below.

TIM receives monthly compensation from TAM at the annual rate of a specified percentage, indicated below, of a Fund’s average daily net assets:

22

Fund	Investment Subadvisory Fee
Transamerica Premier Balanced Fund	0.75% for the first $1 billion of assets in the Fund;
	0.72% of the next $1 billion; and
	0.70% of assets in excess of $2 billion.
Transamerica Premier Cash Reserve Fund	0.33%
Transamerica Premier Diversified Equity Fund	0.75% for the first $1 billion of assets in the Fund;
	0.72% of the next $1 billion; and
	0.70% of assets in excess of $2 billion.
Transamerica Premier Equity Fund	0.85% for the first $1 billion of assets in the Fund;
	0.82% of the next $1 billion; and
	0.80% of assets in excess of $2 billion.
Transamerica Premier Focus Fund	0.85% for the first $1 billion of assets in the Fund;
	0.82% of the next $1 billion; and
	0.80% of assets in excess of $2 billion.
Transamerica Premier Growth Opportunities Fund	0.85% for the first $1 billion of assets in the Fund;
	0.82% of the next $1 billion; and
	0.80% of assets in excess of $2 billion.
Transamerica Premier High Yield Bond Fund	0.53%
Transamerica Premier Institutional Bond Fund	0.43%
Transamerica Premier Institutional Diversified Equity Fund	0.73%
Transamerica Premier Institutional Equity Fund	0.73%
Transamerica Premier Institutional Small Cap Value Fund	0.83%

Sub-Advisory Fees Paid

The following table sets forth the total amounts of sub-advisory fees paid (net of fees reimbursed) by TAM to TIM for the period from March 1, 2008 through December 31, 2008.

Fund Name	2008
Transamerica Premier Balanced Fund	$	1,893,482
Transamerica Premier Cash Reserve Fund	$	(369	)
Transamerica Premier Diversified Equity Fund	$	1,247,821
Transamerica Premier Equity Fund	$	4,933,963
Transamerica Premier Focus Fund	$	502,480
Transamerica Premier Growth Opportunities Fund	$	778,526
Transamerica Premier High Yield Bond Fund	$	163,092
Transamerica Premier Institutional Bond Fund	$	0
Transamerica Premier Institutional Equity Fund	$	537,664
Transamerica Premier Institutional Small Cap Value Fund	$	(12,323	)
Transamerica Premier Institutional Diversified Equity Fund	$	(36,855	)

Information about each Fund’s Portfolio Managers

Information regarding other accounts for which any portfolio manager is primarily responsible for the day-to-day management, a description of any material conflict of interest that may arise in connection with the portfolio manager’s management of the Funds’ investments, the structure of, and method used to determine the compensation of each portfolio manager and the dollar range of equity securities in the Fund beneficially owned by each portfolio manager are provided in Appendix C of this SAI.

DISTRIBUTOR

TCI, 4600 Syracuse Street, Suite 1100, Denver, CO 80237, serves as the principal underwriter and distributor of the shares of the Funds, which are continuously distributed. TCI is an affiliate of TAM and the Administrator.

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The Underwriting Agreement dated November 1, 2007 will continue from year to year so long as its continuance is approved at least annually in the same manner as the investment advisory agreement discussed above. A discussion of TCI’s responsibilities and charges as principal underwriter of Fund shares is set forth in each Fund’s prospectus.

TCI is registered with the SEC as a broker-dealer, and is a member of the Financial Industry Regulatory Authority. TCI may also enter into arrangements whereby Fund shares may be sold by other broker-dealers, which may or may not be affiliated with TCI.

ADMINISTRATIVE SERVICES

The Funds’ Administrator is TFS (“Administrator”), 570 Carillon Parkway, St. Petersburg, FL 33716. TFS is an affiliate of the Investment Adviser and the Funds’ principal underwriter. The Administrator will: (1) provide the Funds with administrative and clerical services, including the maintenance of the Funds’ books and records; (2) arrange periodic updating of the Funds’ prospectuses and any supplements; (3) provide proxy materials and reports to Fund shareholders and the SEC; and (4) provide the Funds with adequate office space and all necessary office equipment and services. The Administrator also provides services for the registration of Fund shares with those states and other jurisdictions where its shares are offered or sold. The Administrator has contracted with State Street Bank and Trust Company to perform certain administrative functions.

Each Fund pays all of its expenses not assumed by the Investment Adviser/Administrator. These include transfer agent and custodian fees and expenses, legal and auditing fees, printing costs of reports to shareholders, registration fees and expenses, 12b-1 fees, and fees and expenses of directors unaffiliated with the Investment Adviser and any extraordinary expenses.

The Investment Adviser/Administrator may from time to time reimburse the Funds for some or all of their operating expenses. Such reimbursements will increase a Fund’s return. This is intended to make the Funds more competitive. This practice may be terminated at any time.

On May 1, 2006, the Funds entered into an agreement wherein the Funds would pay 0.02% (subject to a $35,000 annual minimum fee per fund on a complex-wide basis) of their daily net assets to TFS for administrative services.

The Funds paid the following administrative fees for the fiscal years ended December 31, 2008, 2007 and 2006.

ADMINISTRATIVE FEES

Fund Name	2008		2007		2006
Transamerica Premier Balanced Fund	$	78,984	$	38,616	$	42,016
Transamerica Premier Cash Reserve Fund	$	16,494	$	35,000	$	28,302
Transamerica Premier Diversified Equity Fund	$	51,717	$	35,000	$	34,838
Transamerica Premier Equity Fund	$	180,332	$	38,616	$	49,519
Transamerica Premier Focus Fund	$	14,574	$	35,000	$	31,789
Transamerica Premier Growth Opportunities Fund	$	22,646	$	35,000	$	34,414
Transamerica Premier High Yield Bond Fund	$	9,629	$	35,000	$	31,886
Transamerica Premier Institutional Bond Fund	$	221	$	35,000	$	26,420
Transamerica Premier Institutional Diversified Equity Fund	$	120	$	38,616	$	26,397
Transamerica Premier Institutional Equity Fund	$	20,303	$	35,000	$	28,565
Transamerica Premier Institutional Small Cap Value Fund	$	1,349	$	35,000	$	26,400

CUSTODIAN AND TRANSFER AGENT

State Street Bank and Trust Company (“State Street”), 225 Franklin Street, Boston, MA 02110, is the custodian for the Transamerica Premier Funds. The custodian is not responsible for any of the investment policies or decisions of a Fund, but holds its assets in safekeeping, and collects and remits the income thereon subject to the instructions of the Funds.

TFS is the transfer agent for each Fund. The transfer agent is responsible for: a) opening and maintaining your account; b) reporting information to you about your account; c) distributing to you dividends and capital gains; and d) handling your requests for exchanges, transfers and redemptions. For these services TFS is paid $19.60 per year per open direct account;

24

$8.00 per year per open NSCC account; $1.50 per year per closed account; an annual distributor fee of $35,000; and applicable out-of-pocket expenses, including the cost of sub-transfer agent expenses.

Transaction request should be mailed to Transamerica Premier Funds, P.O. Box 219427, Kansas City, MO 64121-9427 or Transamerica Premier Funds, 330 West 9^th Street, Kansas, City, MO 64105 (for overnight mail).

There were no brokerage credits received for the periods ended December 31, 2008, 2007 and 2006.

FUND TRANSACTIONS AND BROKERAGE

Decisions as to the assignment of Fund business for each of the Funds and negotiation of commission rates are made by a Fund’s sub-adviser, whose policy is to seek to obtain the “best execution” of all fund transactions. The Investment Advisory Agreement and Sub-Advisory Agreement for each Fund specifically provide that in placing portfolio transactions for a Fund, the Fund’s sub-adviser may agree to pay brokerage commissions for effecting a securities transaction in an amount higher than another broker or dealer would have charged for effecting that transaction as authorized, under certain circumstances, by the Securities Exchange Act of 1934, as amended (the “1934 Act”).

In selecting brokers and dealers and in negotiating commissions, a Fund’s sub-adviser may consider a number of factors, including but not limited to:

The sub-adviser’s knowledge of currently available negotiated commission rates or prices of securities and other current transaction costs;

The nature of the security being traded;

The size and type of the transaction;

The nature and character of the markets for the security to be purchased or sold;

The desired timing of the trade;

The activity existing and expected in the market for the particular security quality of the execution, clearance and settlement services;

Financial stability;

The existence of actual or apparent operational problems of any broker or dealer; and

Research products and services provided.

In recognition of the value of the foregoing factors, the sub-adviser may place portfolio transactions with a broker with whom it has negotiated a commission that is in excess of the commission another broker would have charged for effecting that transaction. This is done if the sub-adviser determines in good faith that such amount of commission was reasonable in relation to the value of the brokerage and research provided by such broker viewed in terms of either that particular transaction or of the overall responsibilities of the sub-adviser. Research provided may include:

Furnishing advice, either directly or through publications or writings, as to the value of securities, the advisability of purchasing or selling specific securities and the availability of securities or purchasers or sellers of securities;

Furnishing seminars, information, analyses and reports concerning issuers, industries, securities, trading markets and methods, legislative developments, changes in accounting practices, economic factors and trends and portfolio strategy;

Access to research analysts, corporate management personnel, industry experts, economists and government officials; and

Comparative performance evaluation and technical measurement services and quotation services, and other services (such as third party publications, reports and analyses, and computer and electronic access, equipment, software, information and accessories that deliver process or otherwise utilize information, including the research described above) that assist the sub-adviser in carrying out its responsibilities.

Most of the brokers and dealers used by the funds’ sub-adviser provide research and other services described above.

25

A sub-adviser may use research products and services in servicing other accounts in addition to the funds. If a sub-adviser determines that any research product or service has a mixed use, such that it also serves functions that do not assist in the investment decision-making process, a sub-adviser may allocate the costs of such service or product accordingly. The portion of the product or service that a sub-adviser determines will assist it in the investment decision-making process may be paid for in brokerage commission dollars. Such allocation may be a conflict of interest for a sub-adviser.

When a fund purchases or sells a security in the over-the-counter market, the transaction takes place directly with a principal market-maker without the use of a broker, except in those circumstances where better prices and executions will be achieved through the use of a broker.

A sub-adviser may place transactions for the purchase or sale of portfolio securities with affiliates of TAM, TCI or the sub-adviser, including InterSecurities, Inc., AEGON USA Securities, Inc. or DST Securities, Inc. A sub-adviser may place transactions if it reasonably believes that the quality of the transaction and the associated commission are fair and reasonable, and if overall the associated transaction costs, net of any credits described above under “Custodian, Transfer Agent and Other Affiliates,” are lower than those that would otherwise be incurred. Under rules adopted by the SEC, the Funds’ Board of Directors (“Board”) will conduct periodic compliance reviews of such brokerage allocations and review certain procedures adopted by the Board to ensure compliance with these rules and to determine their continued appropriateness.

DIRECTED BROKERAGE

A sub-adviser to a Fund, to the extent consistent with the best execution and with TAM’s usual commission rate policies and practices, may place portfolio transactions of the Fund with broker-dealers with which the Fund has established a Directed Brokerage Program. A Directed Brokerage Program is any arrangement under which a broker-dealer applies a portion of the commissions received by such broker-dealer on the Fund’s portfolio transactions to the payment of operating expenses that would otherwise be borne by the Fund. These commissions are not used for promoting or selling fund shares or otherwise related to the distribution of fund shares.

	Brokerage Commissions Paid
	(Including Affiliated Brokerage)
			December 31*				Affiliated Brokerage December 31*
Fund Name	2008		2007		2006		2008		2007		2006
Transamerica Premier Balanced Fund	$	193,916	$	179,386	$	85,539	$	—	$	—	$	—
Transamerica Premier Cash Reserve Fund		N/A		N/A		N/A		N/A		N/A		N/A
Transamerica Premier Diversified Equity Fund	$	204,367	$	152,548	$	137,739	$	—	$	—	$	—
Transamerica Premier Equity Fund	$	720,325	$	670,809	$	350,055	$	—	$	—	$	—
Transamerica Premier Focus Fund	$	99,984	$	92,122	$	109,149	$	—	$	—	$	—
Transamerica Premier Growth Opportunities Fund	$	139,878	$	184,684	$	214,206	$	—	$	—	$	—
Transamerica Premier High Yield Bond Fund	$	7,000	$	2,890	$	200	$	—	$	—	$	—
Transamerica Premier Institutional Bond Fund	$	—	$	—	$	—	$	—	$	—	$	—
Transamerica Premier Institutional Diversified Equity Fund	$	473	$	330	$	377	$	—	$	—	$	—
Transamerica Premier Institutional Equity Fund	$	86,465	$	64,468	$	32,457	$	—	$	—	$	—
Transamerica Premier Institutional Small Cap Value Fund	$	50,084	$	3,484	$	1,286	$	—	$	—	$	—

* TIM became the sub-adviser to the Funds on February 25, 2008.

26

As of December 31, 2008, the following Funds held securities of the Funds’ regular brokers or dealers as defined in Rule 10b-1 under the Investment Company Act of 1940:

Fund(s)	Broker-Dealer	Value (USD)
Transamerica Premier Cash Reserve Fund	Barclays	$	3,342,240
Transamerica Premier Balanced Fund	Barclays	$	720,773
Transamerica Premier Institutional Bond Fund	Barclays	$	6,613
Transamerica Premier Cash Reserve Fund	Toyota Financial Services	$	3,388,878
Transamerica Premier Cash Reserve Fund	Bank of America	$	2,534,779
Transamerica Premier Balanced Fund	Bank of America	$	4,703,170
Transamerica Premier Diversified Equity Fund	Bank of America	$	2,444,400
Transamerica Premier High Yield Bond Fund	Bank of America	$	810,000
Transamerica Premier Institutional Diversified Equity Fund	Bank of America	$	5,471
Transamerica Premier Institutional Bond Fund	Bank of America	$	9,612
Transamerica Premier Focus Fund	JPMorgan Chase	$	796,133
Transamerica Premier Diversified Equity Fund	JPMorgan Chase	$	4,256,550
Transamerica Premier Institutional Diversified Equity Fund	JPMorgan Chase	$	9,774

The following table provides brokerage commissions that were directed to brokers for brokerage and research services provided during the fiscal year ended December 31, 2008.

	Estimated Research
Fund Name	Commissions
Transamerica Premier Balanced Fund	$	176,977.72
Transamerica Premier Cash Reserve Fund	$	—
Transamerica Premier Diversified Equity Fund	$	186,073.62
Transamerica Premier Equity Fund	$	689,637.41
Transamerica Premier Focus Fund	$	89,986.76
Transamerica Premier Growth Opportunities Fund	$	117,093.53
Transamerica Premier High Yield Bond Fund	$	—
Transamerica Premier Institutional Bond Fund	$	—
Transamerica Premier Institutional Diversified Equity Fund	$	429.55
Transamerica Premier Institutional Equity Fund	$	81,088.22
Transamerica Premier Institutional Small Cap Value Fund	$	38,372.31

The estimates above are based upon custody data provided to Capital Institutional Services, Inc. (“CAPIS”) using the following methodology: Total Commissions minus transactions executed at discounted rates and/or directed to the funds’ commission recapture program equals total research commissions. USD transactions executed at $.02 and below and non-USD transactions executed at 8 basis points and below are considered to be executed at discounted rates. For example, Commission paid on USD transactions at rates greater than $.02 per share and not directed for commission recapture are assumed to be paid to brokers that provide research and brokerage services within the scope of Section 28(e) of the Securities and Exchange Act of 1934.

27

BOARD MEMBERS AND OFFICERS

The Board Members and executive officers of the Company are listed below. 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 the Company 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 Asset Management Group”). Transamerica Asset Management Group (“TAMG”) consists of Transamerica Funds, Transamerica Series Trust (“TST”), Transamerica Investors, Inc. (“TII”), 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 179 funds as of the date of this SAI.

The mailing address of each Board Member is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716. The Board Members, their ages, their positions with the Company, and their principal occupations for the past five years (their titles may have varied during that period), the number of funds in TAMG the Board oversees, and other board memberships they hold are set forth in the table below.

		Term of		Number of
		Office		Funds in
		and		Complex
		Length of		Overseen by
	Position(s) Held	Time	Principal Occupation(s) During	Board		Other
Name and Age	with Company	Served*	Past 5 Years	Member		Directorships
INTERESTED BOARD MEMBER**
John K. Carter (1961)	Chairman, Board Member, President, and Chief Executive Officer	Since 2003	Chairman and Board Member (2008 – present), President (2007 – present), Chief Executive Officer (2006 – present), Vice President, Secretary and Chief Compliance Officer (2003 – 2006), TII;		179		N/A
			Chairman, Board Member, President and Chief Executive Officer, TPP, TPFG, TPFG II and TAAVF (2007 – present);
			Chairman (2007 – present), Board Member (2006 – present), President and Chief Executive Officer (2006 – present), Senior Vice President (1999 – 2006), Chief Compliance Officer, General Counsel and Secretary (1999 – 2006), Transamerica Funds and TST;
			Chairman (2007 – present), Board Member (2006 – present), President and Chief Executive Officer (2006 – present), Senior Vice President (2002 – 2006), General Counsel, Secretary and Chief Compliance Officer (2002 – 2006), TIS;

28

		Term of		Number of
		Office		Funds in
		and		Complex
		Length of		Overseen by
	Position(s) Held	Time	Principal Occupation(s) During	Board		Other
Name and Age	with Company	Served*	Past 5 Years	Member		Directorships
			President and Chief Executive Officer (2006 – present), Senior Vice President (1999 – 2006), Director (2000 – present), General Counsel and Secretary (2000 – 2006), Chief Compliance Officer (2004 – 2006), TAM;
			President and Chief Executive Officer (2006 – present), Senior Vice President (1999 – 2006), Director (2001 – present), General Counsel and Secretary (2001 – 2006), Transamerica Fund Services, Inc. (“TFS”);
			Vice President, AFSG Securities Corporation (2001 –present);
			Senior Vice President, General Counsel and Secretary, Transamerica Index Funds, Inc. (“TIF”) (2002 – 2004); and
			Director (2008 – present), Vice President, Transamerica Investment Services, Inc. (“TISI”) (2003 – 2005) and Transamerica Investment Management, LLC (“TIM”) (2001 – 2005).
INDEPENDENT BOARD MEMBERS***
Sandra N. Bane (1952)	Board Member	Since 2003	Retired, KPMG (1999 – present); Board Member, TII (2003 – present); and Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2008 – present).		179		Big 5 Sporting Goods (2002 – present); AGL Resources, Inc. (energy services holding company) (2008 – present)

29

		Term of		Number of
		Office		Funds in
		and		Complex
		Length of		Overseen by
	Position(s) Held	Time	Principal Occupation(s) During	Board		Other
Name and Age	with Company	Served*	Past 5 Years	Member		Directorships
Leo J. Hill (1956)	Lead Independent Board Member	Since 2008	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 – present); Owner and President, Prestige Automotive Group (2001 – 2005); President, L. J. Hill & Company (1999 – present); Market President, Nations Bank of Sun Coast Florida (1998 – 1999); 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).		179		N/A
Neal M. Jewell (1935)	Board Member	Since 2008	Retired (2004 – present); Board Member, TPP, TPFG, TPFG II and TAAVF (1993 – present);		179		N/A

30

		Term of		Number of
		Office		Funds in
		and		Complex
		Length of		Overseen by
	Position(s) Held	Time	Principal Occupation(s) During	Board		Other
Name and Age	with Company	Served*	Past 5 Years	Member		Directorships
			Board Member, Transamerica Funds, TST and TIS (2007 – present); Board Member, TII (2008 — present); and Independent Trustee, EAI Select Managers Equity Fund (a mutual fund) (1996 – 2004).
Russell A. Kimball, Jr. (1944)	Board Member	Since 2008	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 – present).		179		N/A
Eugene M. Mannella (1954)	Board Member	Since 2008	Chief Executive Officer, HedgeServ Corporation (hedge fund administration) (2008 – present); Self-employed consultant (2006 – present); President, ARAPAHO Partners LLC (limited purpose broker-dealer) (1998 – 2008); Board Member, TPP, TPFG, TPFG II and TAAVF (1994 – present); Board Member, Transamerica Funds, TST and TIS (2007 – present);		179		N/A

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		Term of		Number of
		Office		Funds in
		and		Complex
		Length of		Overseen by
	Position(s) Held	Time	Principal Occupation(s) During	Board		Other
Name and Age	with Company	Served*	Past 5 Years	Member		Directorships
			Board Member, TII (2008 – present); and President, International Fund Services (alternative asset administration) (1993 – 2005).
Norman R. Nielsen (1939)	Board Member	Since 2008	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 – present); Director, 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 (1987 – 2006); and President, Kirkwood Community College (1985 – 2005).		179		Buena Vista University Board of Trustees (2004 — present)
Joyce G. Norden (1939)	Board Member	Since 2008	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);		179		Board of Governors, Reconstructionist Rabbinical College (2007 - present)

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		Term of		Number of
		Office		Funds in
		and		Complex
		Length of		Overseen by
	Position(s) Held	Time	Principal Occupation(s) During	Board		Other
Name and Age	with Company	Served*	Past 5 Years	Member		Directorships
			Board Member, TII (2008 – present); and Vice President, Institutional Advancement, Reconstructionist Rabbinical College (1996 – 2004).
Patricia L. Sawyer (1950)	Board Member	Since 2008	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 – present); Board Member, TPP, TPFG, TPFG II and TAAVF (1993 – present); Vice President, American Express (1987 – 1989); Vice President, The Equitable (1986 – 1987); and Strategy Consultant, Booz, Allen & Hamilton (1982 – 1986).		179		N/A
John W. Waechter (1952)	Board Member	Since 2008	Attorney, Englander & Fischer, P.A. (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);		179		Operation PAR, Inc. (2008 – present); West Central Florida Council – Boy Scouts of America (2008 – present)

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		Term of		Number of
		Office		Funds in
		and		Complex
		Length of		Overseen by
	Position(s) Held	Time	Principal Occupation(s) During	Board	Other
Name and Age	with Company	Served*	Past 5 Years	Member	Directorships
			Board Member, TII (2008 – present); 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).

*	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 Company’s Articles of Incorporation.
**	May be deemed an “interested person” (as that term is defined in the 1940 Act) of the Company because of his employment with TAM or an affiliate of TAM.
***	Independent Board Member means a Board Member who is not an “interested person” (as defined under the 1940 Act) of the Company.

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 ages, their positions held with the Company 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.

		Term of
		Office and
		Length of	Principal Occupation(s) or
Name and Age	Position	Time Served*	Employment During Past 5 Years
John K. Carter (1961)	Chairman, Board Member, President, and Chief Executive Officer	Since 2003	See the table above.

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		Term of
		Office and
		Length of	Principal Occupation(s) or
Name and Age	Position	Time Served*	Employment During Past 5 Years
Dennis P. Gallagher (1970)	Vice President, General Counsel and Secretary	Since 2006	Vice President, General Counsel and Secretary, TII, Transamerica Funds, TST and TIS (2006 – present); Vice President, General Counsel and Secretary, TPP, TPFG, TPFG II and TAAVF (2007 – present); Director, Senior Vice President, General Counsel and Secretary, TAM and TFS (2006 – present); Assistant Vice President, TCI (2007 – present); and Director, Deutsche Asset Management (1998 – 2006).
Joseph P. Carusone (1965)	Vice President, Treasurer and Principal Financial Officer	Since 2007	Vice President, Treasurer and Principal Financial Officer, Transamerica Funds, TST, TIS and TII (2007 – present); Vice President (2007 – present), Treasurer and Principal Financial Officer (2001 – present), TPP, TPFG, TPFG II and TAAVF; Senior Vice President, TAM and TFS (2007 – present); Senior Vice President (2008 – present), Vice President (2001 – 2008), Diversified Investment Advisors, Inc. (“DIA”); Director and President, Diversified Investors Securities Corp. (“DISC”) (2007 – present); Director, Transamerica Financial Life Insurance Company (“TFLIC”) (2004 – present); and Treasurer, Diversified Actuarial Services, Inc. (2002 – present).
Christopher A. Staples (1970)	Vice President and Chief Investment Officer	Since 2005	Vice President and Chief Investment Officer (2007 – present); Vice President — Investment Administration (2005 – 2007), TII; Vice President and Chief Investment Officer (2007 – present), Senior Vice President — Investment Management (2006 – 2007),

35

		Term of
		Office and
		Length of	Principal Occupation(s) or
Name and Age	Position	Time Served*	Employment During Past 5 Years
			Vice President — Investment Management (2005 – 2006), Transamerica Funds, TST and TIS; Vice President and Chief Investment Officer, TPP, TPFG, TPFG II and TAAVF (2007 – present); Director (2005 – present), Senior Vice President – Investment Management (2006 – present) and Chief Investment Officer (2007 – present), TAM; Director, TFS (2005 – present); and Assistant Vice President, Raymond James & Associates (1999 – 2004).
Rick B. Resnik (1967)	Vice President, Chief Compliance Officer and Conflicts of Interest Officer	Since 2008	Chief Compliance Officer, TPP, TPFG, TPFG II and TAAVF (2004 – present); Chief Compliance Officer, Transamerica Funds, TST, TIS and TII (2008 – present); Vice President and Conflicts of Interest Officer, TPP, TPFG, TPFG II, TAAVF, Transamerica Funds, TST, TIS and TII (2008 – present); Senior Vice President and Chief Compliance Officer, TAM (2008 – present); Senior Vice President, TFS (2008 – present); Vice President and Chief Compliance Officer, DIA (2004 – present); with DIA since 1988; Director (1999 – present), Vice President and Chief Compliance Officer (1996 – present), DISC; Assistant Vice President, TFLIC (1999 – present); and Chief Compliance Officer, Transamerica Partners Variable Funds (2004 – present).

36

		Term of
		Office and
		Length of	Principal Occupation(s) or
Name and Age	Position	Time Served*	Employment During Past 5 Years
Robert A. DeVault, Jr. (1965)	Assistant Treasurer	Since 2009	Assistant Treasurer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (January 2009 – present); and Assistant Vice President (2007 – present) and Manager, Fund Administration (2002 – 2007), TFS.
Suzanne Valerio- Montemurro (1964)	Assistant Treasurer	Since 2007	Assistant Treasurer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (2007 – present); and Vice President, DIA (1998 – present).
Sarah L. Bertrand (1967)	Assistant Secretary	Since 2009	Assistant Secretary, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (January 2009 – present); Assistant Vice President and Manager, Legal Administration, TAM and TFS (2007 – present); Assistant Secretary and Chief Compliance Officer, 40/86 Service 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).
Timothy J. Bresnahan (1968)	Assistant Secretary	Since 2009	Assistant Secretary, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (January 2009 – present); Counsel, TAM (2008 – present); Counsel (contract), Massachusetts Financial Services, Inc. (2007); Assistant Counsel, BISYS Fund Services Ohio, Inc. (2005 – 2007); and Associate, Greenberg Traurig, P.A. (2004 – 2005).

37

		Term of
		Office and
		Length of	Principal Occupation(s) or
Name and Age	Position	Time Served*	Employment During Past 5 Years
Richard E. Shield, Jr. (1974)	Tax Officer	Since 2008	Tax Officer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (2008 – present); Tax Manager, Jeffrey P. McClanathan, CPA (2006 – 2007) and Gregory, Sharer & Stuart (2005 – 2006); Tax Senior, Kirkland, Russ, Murphy & Tapp, P.A. (2003 – 2005); and Certified Public Accountant, Schultz, Chaipel & Co., LLP (1998 – 2003).

* Elected and serves at the pleasure of the Board of the Company.

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

Committees of the Board

The Board Members are responsible for major decisions relating to a fund’s objective, policies and techniques. They review investment decisions, although they do not actively participate on a regular basis in making such decisions. The Board has the following standing committees each of which performs specialized functions: an Audit Committee and a Nominating Committee.

38

			NUMBER OF
			MEETINGS
			HELD
			DURING
			LAST FISCAL
			YEAR
COMMITTEE	FUNCTIONS	MEMBERS	12/31/2008
AUDIT	The Audit Committee (1) oversees the accounting and reporting policies and practices of the Company; (2) oversees the quality and integrity of the financial statements of the Company; (3) approves, prior to appointment, the engagement of the Company’s independent auditors; and (4) reviews and evaluates the independent auditors’ qualifications, independence and performance. The independent auditors for the Company shall report directly to the Audit Committee.	John W. Waechter, Chairperson Sandra N. Bane Leo J. Hill Neal M. Jewell Russell A. Kimball, Jr. Eugene M. Mannella Norman R. Nielsen Joyce G. Norden Patricia L. Sawyer		2
NOMINATING	The primary purposes and responsibilities of the Committee are to (i) identify individuals qualified to become members of the Board in the event that a position is vacated or created, (ii) consider all candidates proposed to become members of the Board, subject to the procedures and policies set forth in this Charter or resolutions of the Board, (iii) select and nominate, or recommend for nomination by the Board, candidates for election as Board Members and (iv) set any necessary standards or qualifications for service on the Board.	Patricia L. Sawyer, Chairperson Sandra N. Bane Leo J. Hill Neal M. Jewell Russell A. Kimball, Jr. Eugene M. Mannella Norman R. Nielsen Joyce G. Norden John W. Waechter		0
	Shareholders may recommend candidates for Board positions by forwarding their correspondence by mail or courier service to Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716.

39

Director Ownership of Equity Securities

The tables below gives the dollar range of shares of the Funds as well as the aggregate dollar range of shares of all Funds in the Transamerica Asset Management Group owned by each Director as of December 31, 2008. At a special meeting of shareholders held on February 25, 2008, shareholders elected Messrs. Carter, Hill, Jewell, Kimball, Mannella, Nielsen, and Waechter and Ms. Norden and Ms. Sawyer as Directors of the Company.

			Dollar Range of Equity
	Dollar Range of Equity	Dollar Range of Equity	Securities in
	Securities in Transamerica	Securities in Transamerica	Transamerica Premier
Name of Director	Premier Balanced Fund	Premier Cash Reserve Fund	Diversified Equity Fund
John K. Carter*	None	None	None
Sandra N. Bane	None	None	None
Leo J. Hill	None	None	None
Neal M. Jewell	None	None	None
Russell A. Kimball, Jr.	None	None	None
Eugene M. Mannella	None	None	None
Norman R. Nielsen	None	None	None
Joyce G. Norden	None	None	None
Patricia L. Sawyer	None	None	None
John W. Waechter	None	None	None

			Dollar Range of Equity
	Dollar Range of Equity	Dollar Range of Equity	Securities in
	Securities in Transamerica	Securities in Transamerica	Transamerica Premier
Name of Director	Premier Equity Fund	Premier Focus Fund	Growth Opportunities Fund
John K. Carter*	None	None	None
Sandra N. Bane	None	None	None
Leo J. Hill	None	None	None
Neal M. Jewell	None	None	None
Russell A. Kimball, Jr.	None	None	None
Eugene M. Mannella	None	None	None
Norman R. Nielsen	None	None	None
Joyce G. Norden	None	None	None
Patricia L. Sawyer	None	None	None
John W. Waechter	None	None	None

40

			Dollar Range of Equity
	Dollar Range of Equity	Dollar Range of Equity	Securities in
	Securities in Transamerica	Securities in Transamerica	Transamerica Premier
	Premier High Yield Bond	Premier Institutional Bond	Institutional Diversified
Name of Director	Fund	Fund	Equity Fund
John K. Carter*	None	None	None
Sandra N. Bane	None	None	None
Leo J. Hill	None	None	None
Neal M. Jewell	None	None	None
Russell A. Kimball, Jr.	None	None	None
Eugene M. Mannella	None	None	None
Norman R. Nielsen	None	None	None
Joyce G. Norden	None	None	None
Patricia L. Sawyer	None	None	None
John W. Waechter	None	None	None

	Dollar Range of Equity	Dollar Range of Equity	Aggregate Dollar Range
	Securities in Transamerica	Securities in Transamerica	of Equity Securities in
	Premier Institutional	Premier Institutional Small	Transamerica Asset
Name of Director	Equity Fund	Cap Value Fund	Management Group
John K. Carter*	None	None	Over $100,000
Sandra N. Bane	None	None	None
Leo J. Hill	None	None	Over $100,000
Neal M. Jewell	None	None	Over $100,000
Russell A. Kimball, Jr.	None	None	Over $100,000
Eugene M. Mannella	None	None	None
Norman R. Nielsen	None	None	Over $100,000
Joyce G. Norden	None	None	None
Patricia L. Sawyer	None	None	None
John W. Waechter	None	None	Over $100,000

* Interested person under the 1940 Act by virtue of his position with TAM and its affiliates.

As of December 31, 2008, none of the Independent Directors or their immediate family members owned beneficially or of record any securities of the Adviser, sub-adviser or Distributor of the Funds, or in a person (other than a registered investment company) directly or indirectly controlling, controlled or by or under common control with the Adviser, sub-adviser or Distributor of the Funds.

Independent Directors receive a total annual retainer fee of $124,000 from the Funds that make up the Transamerica Asset Management Group, as well as total fees of $8,800 per meeting (assumes five meetings annually), of which the Company pays a pro rata share allocable to each series of Transamerica Premier Funds based on the relative assets of the series. The Lead Independent Board Member of the Board also receives an additional retainer of $40,000 per year. The Audit Committee Chairperson

41

receives an additional retainer of $15,000 per year. The Company also pays a pro rata share allocable to each series of Transamerica Premier Funds based on the relative assets of the series for the Lead Independent Board Member and Audit Committee Chairperson retainers. Any fees and expenses paid to Directors who are affiliates of TAM or TCI are paid by TAM and/or TCI and not by the Trust.

Under a non-qualified deferred compensation plan effective January 1, 1996, as amended and restated May 1, 2008 (the “Deferred Compensation Plan”) available to the Directors, compensation may be deferred that would otherwise be payable by the Company to an Independent Director on a current basis for services rendered as a Director. 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), investment options under Transamerica Partners Funds Group II, or Funds of the Company as elected by the Director.

Amounts deferred and accrued under the Deferred Compensation Plan are unfunded and unsecured claims against the general assets of the Company.

Compensation Table

The following table provides compensation amounts paid to Independent Directors of the Funds for the fiscal year ended December 31, 2008. At the special meeting of shareholders held on February 25, 2008, shareholders elected Messrs. Carter, Hill, Jewell, Kimball, Mannella, Nielsen, and Waechter and Ms. Norden and Ms. Sawyer as Directors of the Company.

	Aggregate Compensation		Aggregate Compensation		Aggregate Compensation
	from Transamerica		from Transamerica		from Transamerica
	Premier Institutional		Premier Institutional		Premier Institutional Bond
Name of Director	Small Cap Value Fund(1)		Diversified Equity Fund(1)		Fund(1)
Sandra N. Bane	$	27	$	4	$	7
David R. Carpenter(2)	$	14	$	2	$	4
Richard R. Crowell(2)	$	9	$	1	$	2
Leo J. Hill	$	11	$	2	$	3
Neal M. Jewell	$	13	$	2	$	3
Russell A. Kimball, Jr.	$	11	$	2	$	3
Eugene M. Mannella	$	11	$	2	$	3
Norman R. Nielsen	$	11	$	2	$	3
Joyce G. Norden	$	11	$	2	$	3
Charles C. Reed(2)	$	16	$	2	$	4
Patricia L. Sawyer	$	12	$	2	$	3
Carl R. Terzian(2)	$	14	$	2	$	4
John W. Waechter	$	11	$	2	$	3

	Aggregate Compensation		Aggregate Compensation
	from Transamerica		from Transamerica		Aggregate Compensation
	Premier High Yield Bond		Premier Cash Reserve		from Transamerica
Name of Director	Fund(1)		Fund(1)		Premier Balanced Fund(1)
Sandra N. Bane	$	307	$	544	$	2,636
David R. Carpenter(2)	$	157	$	278	$	1,346
Richard R. Crowell(2)	$	99	$	176	$	853

42

	Aggregate Compensation		Aggregate Compensation
	from Transamerica		from Transamerica		Aggregate Compensation
	Premier High Yield Bond		Premier Cash Reserve		from Transamerica
Name of Director	Fund(1)		Fund(1)		Premier Balanced Fund(1)
Leo J. Hill	$	123	$	219	$	1,060
Neal M. Jewell	$	153	$	271	$	1,313
Russell A. Kimball, Jr.	$	123	$	219	$	1,060
Eugene M. Mannella	$	123	$	219	$	1,060
Norman R. Nielsen	$	123	$	219	$	1,060
Joyce G. Norden	$	123	$	219	$	1,060
Charles C. Reed(2)	$	180	$	318	$	1,543
Patricia L. Sawyer	$	134	$	238	$	1,155
Carl R. Terzian(2)	$	157	$	278	$	1,346
John W. Waechter	$	123	$	219	$	1,060

43

			Aggregate Compensation
	Aggregate Compensation		from Transamerica		Aggregate Compensation
	from Transamerica		Premier Growth		from Transamerica
Name of Director	Premier Equity Fund(1)		Opportunities Fund(1)		Premier Focus Fund(1)
Sandra N. Bane	$	6,175	$	775	$	494
David R. Carpenter(2)	$	3,153	$	395	$	252
Richard R. Crowell(2)	$	1,998	$	251	$	160
Leo J. Hill	$	2,483	$	312	$	199
Neal M. Jewell	$	3,075	$	386	$	246
Russell A. Kimball, Jr.	$	2,483	$	312	$	199
Eugene M. Mannella	$	2,483	$	312	$	199
Norman R. Nielsen	$	2,483	$	312	$	199
Joyce G. Norden	$	2,483	$	312	$	199
Charles C. Reed(2)	$	3,615	$	453	$	289
Patricia L. Sawyer	$	2,705	$	339	$	216
Carl R. Terzian(2)	$	3,153	$	395	$	252
John W. Waechter	$	2,483	$	312	$	199

	Aggregate Compensation		Aggregate Compensation
	from Transamerica		from Transamerica
	Premier Diversified Equity		Premier Institutional
Name of Director	Fund(1)		Equity Fund(1)
Sandra N. Bane	$	1,742	$	656
David R. Carpenter(2)	$	890	$	335
Richard R. Crowell(2)	$	564	$	212
Leo J. Hill	$	701	$	264
Neal M. Jewell	$	868	$	327
Russell A. Kimball, Jr.	$	701	$	264
Eugene M. Mannella	$	701	$	264
Norman R. Nielsen	$	701	$	264
Joyce G. Norden	$	701	$	264
Charles C. Reed(2)	$	1,020	$	384
Patricia L. Sawyer	$	763	$	288
Carl R. Terzian(2)	$	890	$	335
John W. Waechter	$	701	$	264

44

			Total Compensation Paid
			From Funds and
	Pension or Retirement		Transamerica Asset
	Benefits Accrued as		Management Group to
Name of Director	Part of Fund Expenses		Directors
Sandra N. Bane	$	—	$	146,358
David R. Carpenter(2)	$	—	$	6,825
Richard R. Crowell(2)	$	—	$	4,325
Leo J. Hill	$	—	$	168,000
Neal M. Jewell	$	—	$	208,000
Russell A. Kimball, Jr.	$	—	$	168,000
Eugene M. Mannella	$	—	$	168,000
Norman R. Nielsen	$	—	$	168,000
Joyce G. Norden	$	—	$	168,000
Charles C. Reed(2)	$	—	$	7,825
Patricia L. Sawyer	$	—	$	183,000
Carl R. Terzian(2)	$	—	$	6,825
John W. Waechter	$	—	$	168,000

(1)

Of this aggregate compensation, the total amounts deferred from the Funds (including earnings and dividends) and accrued for the benefit of the participating Directors for the year ended December 31, 2008 were as follows: Sandra N. Bane, $0; Leo J. Hill, $0; Neal M. Jewell, $5,119; Russell A. Kimball, Jr. $0; Eugene M. Mannella, $0; Norman R. Nielsen, $0; Joyce G. Norden, $0; Patricia L. Sawyer, $0; and John W. Waechter, $0.

(2)

Not re-elected as a Director at the special meeting of shareholders held on February 25, 2008.

As of December 31, 2008, the Directors and officers held in aggregate less than 1% of the outstanding shares of each of the Company’s series.

SHAREHOLDER COMMUNICATION PROCEDURES WITH BOARD OF DIRECTORS

The Board of the Company has adopted these procedures by which shareholders of the Funds may send written communications to the Board. Shareholders may mail written communications to the Board, addressed to the care of the Secretary of the Company (“Secretary”), as follows:

Board of Directors
Transamerica Premier Funds
c/o Secretary
570 Carillon Parkway
St. Petersburg, Florida 33716

Each shareholder communication must: (i) be in writing and be signed by the shareholder; (ii) identify the underlying series of the Company to which it relates; and (iii) identify the class (if applicable) held by the shareholder. The Secretary is responsible for collecting, reviewing and organizing all properly submitted shareholder communications. Usually, with respect to each properly submitted shareholder communication, the Secretary shall either: (i) provide a copy of the communication to the Board at the next regularly scheduled Board meeting; or (ii) if the Secretary determines that the communication requires more immediate attention, forward the communication to the Board promptly after receipt. The Secretary may, in good faith, determine that a shareholder communication should not be provided to the Board because the communication: (i) does not reasonably relate to a series of the Company or its operation, management, activities, policies, service providers, Board, officers, shareholders or other matters relating to an investment in the Company; or (ii) is ministerial in nature (such as a request for fund literature, share data or financial information). These procedures shall not apply to (i) any communication from an officer or Director of the Company, (ii) any communication

45

from an employee or agent of the Company, unless such communication is made solely in such employee’s or agent’s capacity as a shareholder, (iii) any shareholder proposal submitted pursuant to Rule 14a-8 under the Securities Exchange Act of 1934 (“Exchange Act”) or any communication made in connection with such a proposal, or (iv) any communication that reasonably may be considered to be a complaint regarding the Company or shareholder services, which complaint shall instead be promptly forwarded to the Company’s Chief Compliance Officer. The Directors are not required to attend the Company’s shareholder meetings, if any, or to otherwise make themselves available to shareholders for communications, other than pursuant to these Procedures.

46

DISTRIBUTION OF SHARES OF THE FUNDS

The amended and restated Rule 12b-1 distribution and service plan (the “Plan”) and related amended and restated underwriting agreement require the Investor Class of each applicable Fund to pay distribution and service fees to TCI and others as compensation for their activities, not as reimbursement for specific expenses. The Company will pay the distribution and service fees until the 12b-1 distribution and service plan is terminated or not renewed. The Board will review the distribution and service plan, contracts and expenses periodically.

The fees payable under the Plan may be used for both distribution and servicing of accounts, including: costs of printing and distributing the Fund’s prospectuses, statements of additional information and reports to prospective investors in the Fund; costs involved in preparing, printing and distributing sales literature pertaining to the Fund and reports for persons other than existing holders; an allocation of overhead and other branch office distribution-related expenses of a servicing party; payments made to, and expenses of, a servicing party and other persons who provide support or personal services to Fund holders in connection with the distribution of interests in the Fund; and interest-related expenses, or the cost of capital associated with, the financing of any of the foregoing. The Plan is a compensation plan pursuant to which each Fund is obligated to pay fees to one or more servicing parties as compensation for their services and not as reimbursement for specific expenses incurred. This means that the Funds will not be obligated to pay more than the fees provided for in the Plan even if expenses exceed those fees, and if the expenses of the servicing party(ies) are less than the fees paid to them, the servicing party or parties will realize a profit. The Plan provides that a servicing party may retain any portions of the fees in excess of its expenses incurred. The Plan recognizes that a Fund’s Investment Adviser, principal underwriter, servicing party, or an affiliate of the foregoing may use its management or advisory fee revenues, past profits or its resources from any other source, to make payment to a servicing party or any other entity with respect to any expenses incurred in connection with the distribution or marketing and sales of interests in the Fund. The Plan specifically provides that, to the extent that such payments might be deemed to be indirect financing of any activity primarily intended to result in the sale of interests in a Fund within the context of Rule 12b-1, then the payments are deemed to be authorized by the Plan.

Total distribution expenses incurred by TCI for the costs of promotion and distribution for the Funds for the fiscal year ended December 31, 2008 were as follows:

Transamerica Premier Balanced Fund — Investor Class Shares

Commissions paid to broker-dealers	$	861,322
SALES & MARKETING(1)
Interactive Marketing		12
Marketing Acquisition		5,481
Shareholder Marketing & Regulatory		399
Wholesaling Compensation		23,909
Overhead		10,029
TOTAL SALES & MARKETING	$	39,830
TOTAL EXPENSES	$	901,152

47

Transamerica Premier Cash Reserve Fund

Commissions paid to broker-dealers	$	—
SALES & MARKETING(1)
Interactive Marketing		5
Marketing Acquisition		2,128
Shareholder Marketing & Regulatory		151
Wholesaling Compensation		9,284
Overhead		3,899
TOTAL SALES & MARKETING	$	15,467
TOTAL EXPENSES	$	15,467

Transamerica Premier Diversified Equity Fund — Investor Class Shares

Commissions paid to broker-dealers	$	605,769
SALES & MARKETING(1)
Interactive Marketing		9
Marketing Acquisition		4,845
Shareholder Marketing & Regulatory		260
Wholesaling Compensation		20,878
Overhead		8,737
TOTAL SALES & MARKETING	$	34,729
TOTAL EXPENSES	$	640,498

Transamerica Premier Equity Fund — Investor Class Shares

Commissions paid to broker-dealers	$	2,125,366
SALES & MARKETING(1)
Interactive Marketing		59
Marketing Acquisition		25,649
Shareholder Marketing & Regulatory		1,767
Wholesaling Compensation		111,457
Overhead		47,063
TOTAL SALES & MARKETING	$	185,995
TOTAL EXPENSES	$	2,311,361

48

Transamerica Premier Focus Fund — Investor Class Shares

Commissions paid to broker-dealers	$	86,164
SALES & MARKETING(1)
Interactive Marketing		2
Marketing Acquisition		778
Shareholder Marketing & Regulatory		51
Wholesaling Compensation		3,335
Overhead		1,423
TOTAL SALES & MARKETING	$	5,589
TOTAL EXPENSES	$	91,753

Transamerica Premier Growth Opportunities Fund — Investor Class Shares

Commissions paid to broker-dealers	$	179,324
SALES & MARKETING(1)
Interactive Marketing		3
Marketing Acquisition		1,250
Shareholder Marketing & Regulatory		90
Wholesaling Compensation		5,478
Overhead		2,294
TOTAL SALES & MARKETING	$	9,115
TOTAL EXPENSES	$	188,439

Transamerica Premier High Yield Bond Fund — Investor Class Shares

Commissions paid to broker-dealers	$	25,951
SALES & MARKETING(1)
Interactive Marketing		7
Marketing Acquisition		1,749
Shareholder Marketing & Regulatory		13
Wholesaling Compensation		6,741
Overhead		3,284
TOTAL SALES & MARKETING	$	11,794
TOTAL EXPENSES	$	37,745

49

Transamerica Premier High Yield Bond Fund — Institutional Class Shares

Commissions paid to broker-dealers	$	—
SALES & MARKETING(1)
Interactive Marketing		1
Marketing Acquisition		394
Shareholder Marketing & Regulatory		22
Wholesaling Compensation		1,711
Overhead		720
TOTAL SALES & MARKETING	$	2,848
TOTAL EXPENSES	$	2,848

Transamerica Premier Institutional Bond Fund

Commissions paid to broker-dealers	$	—
SALES & MARKETING(1)
Interactive Marketing		—
Marketing Acquisition		9
Shareholder Marketing & Regulatory		1
Wholesaling Compensation		38
Overhead		16
TOTAL SALES & MARKETING	$	64
TOTAL EXPENSES	$	64

Transamerica Premier Institutional Diversified Equity Fund

Commissions paid to broker-dealers	$	—
SALES & MARKETING(1)
Interactive Marketing		—
Marketing Acquisition		4
Shareholder Marketing & Regulatory		—
Wholesaling Compensation		21
Overhead		8
TOTAL SALES & MARKETING	$	33
TOTAL EXPENSES	$	33

50

Transamerica Premier Institutional Equity Fund

Commissions paid to broker-dealers	$	—
SALES & MARKETING(1)
Interactive Marketing		9
Marketing Acquisition		3,775
Shareholder Marketing & Regulatory		194
Wholesaling Compensation		15,643
Overhead		6,894
TOTAL SALES & MARKETING	$	26,515
TOTAL EXPENSES	$	26,515

Transamerica Premier Institutional Small Cap Value Fund

Commissions paid to broker-dealers	$	—
SALES & MARKETING(1)
Interactive Marketing		4
Marketing Acquisition		808
Shareholder Marketing & Regulatory		5
Wholesaling Compensation		3,328
Overhead		1,525
TOTAL SALES & MARKETING	$	5,670
TOTAL EXPENSES	$	5,670

(1) Sales and Marketing expenses are incurred by TIM and reimbursed by TCI to the extent that Sales and Marketing expenses do not exceed the net 12b-1 fees.

From time to time, and for one or more Funds, the Distributor may waive any or all of these fees at its discretion.

NET ASSET VALUE DETERMINATION

Pricing of Shares

The price at which shares are purchased or redeemed is the Net Asset Value per share (“NAV”) that is next calculated following receipt and acceptance of a purchase order in good order or receipt of a redemption order in good order by the Fund or an authorized intermediary.

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When Share Price is Determined

The NAV of all Funds is determined on each day the New York Stock Exchange (“NYSE”) is open for business. The NAV is not determined on days when the NYSE is closed (generally New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas). Foreign securities may trade in their primary markets on weekends or other days when a Fund does not price its shares (therefore, the NAV of a Fund holding foreign securities may change on days when shareholders will not be able to buy or sell shares of the Funds).

Purchase orders received in good order and accepted, and redemption orders received in good order, before the close of business on the NYSE, usually 4:00 p.m. Eastern Time, receive the NAV determined at the close of the NYSE that day (less applicable charges). Purchase and redemption requests received after the NYSE is closed receive the NAV as of the close of the NYSE the next day the NYSE is open. Purchase and redemption requests by telephone are deemed received when the telephone call is received.

How NAV is Calculated

The NAV of each Fund is calculated by taking the value of its net assets and dividing by the number of shares of the Fund that are then outstanding.

The Board has approved procedures to be used to value the Funds’ securities for the purposes of determining the Fund’s NAV. The valuation of securities of the Funds is determined in good faith by or under the direction of the Board. The Board has delegated certain valuation functions for the Funds to TAM.

In general, securities and other investments are valued based on market price at the close of regular trading on the NYSE. Fund securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-dominated foreign securities or ADRs, are valued at the closing price on the exchange or system where the security is principally traded. With respect to securities traded on the NASDAQ/NMS, such closing price may be the last reported sale price or the NASDAQ Official Closing Price (“NOCP”). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value should be determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales for that day on any exchange or system, a security is valued at the closing bid quotes on the exchange or system where the security is principally traded, or at the NOCP, if applicable. Foreign securities traded on U.S. exchanges are generally priced using last sale price regardless of trading activity. Securities traded over-the-counter are valued at the mean of the last bid and asked prices. The market price for debt obligations and certain derivative securities is generally the price supplied by an independent third party pricing service, which may use market prices or quotations or a variety of fair value techniques and methodologies. Short-term debt obligations that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. The prices that the Fund uses may differ from the amounts that would be realized if the investments were sold and the differences could be significant, particularly for securities that trade in relatively thin markets and/or markets that experience extreme volatility.

When a market quotation for a security is not readily available (which may include closing prices deemed to be unreliable because of the occurrence of a subsequent event), a valuation committee appointed by the Board of Trustees may, in good faith, establish a value for the security in accordance with fair valuation procedures adopted by the Board. The types of securities for which such fair value pricing may be required include, but are not limited to: foreign securities, where a significant event occurs after the close of the foreign market on which such security principally trades that is likely to have changed the value of such security, or the closing value is otherwise deemed unreliable; securities of an issuer that has entered into a restructuring; securities whose trading has been halted or suspended; fixed-income securities that have gone into default or for which there is no current market value quotation; and securities that are restricted as to transfer or resale. The Funds use a fair value model developed by an independent third party pricing service to price foreign equity securities on days when there is a certain percentage change in the value of a domestic equity security index, as such percentage may be determined by TAM from time to time.

Valuing securities in accordance with fair value procedures involves greater reliance on judgment than valuing securities based on readily available market quotations.

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Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service. There can be no assurance that the Funds could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the Funds determine its NAV.

All of the assets of Transamerica Premier Cash Reserve Fund are valued at amortized cost in an effort to maintain a constant net asset value of $1.00 per share. The Board has determined that to be in the best interests of Transamerica Premier Cash Reserve Fund and its shareholders. Under the amortized cost method of valuation, securities are valued at cost on the date of their acquisition, and thereafter a constant accretion of any discount or amortization of any premium to maturity is assumed, regardless of the impact of fluctuating interest rates on the market value of the security. While this method provides certainty in valuation, it may result in periods in which value as determined by amortized cost is higher or lower than the price the Fund would receive if it sold the security. During such periods, the quoted yield to investors may differ somewhat from that obtained by a similar Fund which uses available market quotations to value all of its securities. The Board has established procedures reasonably designed, taking into account current market conditions and Transamerica Premier Cash Reserve Fund’s investment objective, to stabilize the NAV per share for purposes of sales and redemptions at $1.00. These procedures include review by the Board, at such intervals as it deems appropriate, to determine the extent, if any, to which the NAV per share calculated by using available market quotations deviates from $1.00 per share. In the event such deviation should exceed one half of one percent, the Board will promptly consider initiating corrective action. If the Board believes that the extent of any deviation from a $1.00 amortized cost price per share may result in material dilution or other unfair results to new or existing shareholders, it will take such steps as it considers appropriate to eliminate or reduce these consequences to the extent reasonably practicable. Such steps may include: (1) selling securities prior to maturity; (2) shortening the average maturity of the Fund; (3) withholding or reducing dividends; or (4) utilizing a NAV value per share determined from available market quotations. Even if these steps were taken, Transamerica Premier Cash Reserve Fund’s net asset value might still decline, and there can be no assurance that the Fund will maintain a net asset value of $1.00 per share.

PURCHASE, REDEMPTION AND EXCHANGE OF SHARES

Detailed information on how to purchase, redeem and exchange shares of a Fund is included in the prospectuses.

Except as otherwise set forth in the prospectuses or in this section, by calling Transamerica Premier Funds, investors may exchange shares between accounts with identical registrations. During periods of market changes or volatility and/or unusual shareholder activity, shareholders may experience delays in contacting Transamerica Premier Funds by telephone to exercise exchanges.

Transamerica Premier Funds makes exchanges promptly after receiving instructions in good order. If the shareholder is a corporation, partnership, agent, or surviving joint owner, additional documentation of a customary nature will be required. Because an exchange of shares involves the redemption of Fund shares and reinvestment of the proceeds in shares of another Fund, completion of an exchange may be delayed if the Fund were to suspend redemptions or postpone payment for the Fund shares being exchanged, in accordance with federal securities laws. All Transamerica Premier Funds’ prospectuses are available from Transamerica Premier Funds or investment dealers having sales contracts with Transamerica Capital, Inc. The prospectus of each Fund describes its investment objective(s) and policies, and shareholders should obtain a Prospectus and consider these objectives and policies carefully before requesting an exchange. The Funds reserve the right to change or suspend the exchange privilege at any time. Shareholders would be notified of any change or suspension. Additional information is available from Transamerica Premier Funds.

IRA ACCOUNTS

You can establish an Individual Retirement Account (“IRA”), either Traditional or Roth IRA. Contributions to an IRA may be deductible from your taxable income or earnings may be tax-free, depending on your personal tax situation and the type of IRA. Please call 1-800-89-ASK-US (1-800-892-7587) for your IRA application kit, or for additional information. The kit has information on who qualifies for which type of IRA.

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If you are receiving a distribution from your pension plan, or you would like to transfer your IRA account from another financial institution, you can continue to get tax-deferred growth by transferring these proceeds to a Transamerica Premier Fund IRA. If you want to rollover distributions from your pension plan to an IRA in one or more of the Funds, the money must be paid directly by your pension plan administrator to Transamerica Premier Funds to avoid a 20% federal withholding tax.

Retirement accounts are subject to an annual fee of $15.00 on each such fund account, with a maximum fee of $30 per Social Security Number. The fee is generally waived if the value of the total of the retirement account(s), by Social Security Number, is more than $50,000.

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UNIFORM GIFTS TO MINORS

A Uniform Gifts/Transfers to Minors Act (“UGMA/UTMA”) account allows an adult to put assets in the name of a minor child. The adult maintains control over these assets until the child reaches the age of majority, which is generally 18 or 21. State laws dictate which type of account can be used and the age of majority. An adult must be appointed as custodian for the account and will be legally responsible for administering the account, but the child’s Social Security Number must be used. Generally, the person selected as custodian is one of the parents or grandparents, but may be some other adult relative or friend. By shifting assets to a custodial account, you may benefit if the child’s tax rate is lower.

INVESTOR SHARE REDEMPTIONS IN EXCESS OF $250,000

If you request a redemption of up to $250,000, the amount will be paid in cash. If you redeem more than $250,000 from any one account in any one Fund in a 90-day period, we reserve the right to pay you in securities in lieu of cash.

The securities delivered will be selected at the sole discretion of the Fund. They will not necessarily be representative of the entire Fund and may be securities that the Fund regards as least desirable. You may incur brokerage costs in converting the securities to cash.

The method of valuing securities used to make the redemptions will be the same as the method of valuing securities described under “Determination of Net Asset Value” later in this document. Such valuation will be made as of the same time the redemption price is determined.

This right is designed to give the Funds the option to lessen the adverse effect of large redemptions on the Fund and its non-redeeming shareholders. For example, assume that a shareholder redeems $1 million on a given day and that the Fund pays him $250,000 in cash and is required to sell securities for $750,000 to raise the remainder of the cash to pay him. The securities valued at $750,000 on the day of the redemption may bring a lower price when sold thereafter, so that more securities may be sold to realize $750,000. In that case, the redeeming shareholder’s proceeds would be fixed at $750,000 and the market risk would be imposed on the Fund and its remaining shareholders, who would suffer the loss. By delivering securities instead of cash, the market risk is imposed on the redeeming shareholder. The redeeming shareholder (not the Fund) bears the brokerage cost of selling the securities.

ARRANGEMENT WITH FIDELITY MANAGEMENT TRUST COMPANY

The Funds have entered into an arrangement (“Arrangement”) with Fidelity Management Trust Company (“FMTC”) pursuant to which the minimum initial and minimum subsequent investment requirements will be waived (to the extent applicable) with respect to transactions in an account in the Transamerica Premier Equity Fund maintained by FMTC on behalf of the Mohawk Industries 401(k) retirement plan. Net purchase and/or redemption orders forwarded on behalf of plan participants by FMTC with respect to the account pursuant to the Arrangement will not be considered to be market timing or disruptive trading for purposes of the Funds’ compliance policies, and FMTC’s market timing and disruptive trading policies (and not those of the Funds) will apply to transactions by plan participants. All purchase and redemption transactions must comply with FMTC’s market timing and disruptive trading policies. The Arrangement does not permit FMTC or any plan participant to engage in frequent purchase or redemption transactions; rather, it is an exemption from the Funds’ market timing and disruptive trading policies solely to the extent that such policies could be deemed to apply to routine transactions in the account maintained by FMTC or to the extent FMTC’s market timing and disruptive trading policies are applied instead of the Funds’ policies. Neither the Funds, the Investment Adviser, nor any other party to the Arrangement will receive any compensation or consideration with respect to the Arrangement.

GENERAL INFORMATION

For information about how to purchase shares of a Fund at net asset value through an employer’s defined contribution plan, please consult your employer. See “Distribution of Shares” in the prospectuses.

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The Funds continuously offer their shares. The Funds receive the entire net asset value of shares sold. The Funds will accept unconditional orders for shares to be executed at the public offering price based on the net asset value per share next determined after the order is received in good order and accepted. No sales charge is included in the public offering price of shares. In the case of orders for purchase of shares placed through dealers, the public offering price will be based on the net asset value determined on the day the order is placed, but only if the dealer receives the order before the close of regular trading on the New York Stock Exchange (“NYSE”). If the dealer receives the order after the close of the NYSE, the price will be based on the net asset value next determined. If funds for the purchase of shares are sent directly to Transamerica Premier Funds, they will be invested at the public offering price based on the net asset value next determined after receipt. Payment for shares of the Funds must be in U.S. dollars; if made by check, the check must be drawn on a U.S. bank.

Initial and subsequent purchases must satisfy the minimums stated in the prospectuses, except that (i) individual investments under certain employee benefit plans or tax qualified retirement plans may be lower.

The right of redemption of shares of a Fund may be suspended or the date of payment postponed (1) for any periods during which the NYSE is closed (other than for customary weekend and holiday closings), (2) when trading in the markets the Fund normally utilizes is restricted, or an emergency, as defined by the rules and regulations of the SEC, exists, making disposal of a Fund’s investments or determination of its net asset value not reasonably practicable, or (3) for such other periods as the SEC by order may permit for the protection of the Fund’s shareholders. A shareholder who pays for Fund shares by personal check will receive the proceeds of a redemption of those shares when the purchase check has been collected, which may take up to 15 calendar days. Shareholders who anticipate the need for more immediate access to their investment should purchase shares with federal funds or bank wire or by a certified or cashier’s check.

TAXES

Each Fund has qualified, and expects to continue to qualify, for treatment as a regulated investment company (a “RIC”) under the Code. In order to qualify for that treatment, a Fund must distribute to its shareholders for each taxable year at least the sum of 90% of its investment company taxable income, computed without regard to the dividends-paid deduction, and 90% of its net exempt-interest income, if any (the “Distribution Requirement”). Each Fund must also meet several other requirements. These requirements include the following: (1) a Fund must derive at least 90% of its gross income each taxable year from dividends, interest, payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, or other income (including gains from options, futures and forward contracts) derived with respect to its business of investing in such stock, securities or currencies, and net income derived from an interest in qualified publicly traded partnerships (the “Income Requirement”); (2) at the close of each quarter of a Fund’s taxable year, at least 50% of the value of its total assets must be represented by cash and cash items, U.S. government securities, securities of other RICs and other securities (limited in respect of any one issuer of such other securities to an amount not greater than 5% of the value of the Fund’s total assets and to not more than 10% of the outstanding voting securities of the issuer); and (3) at the close of each quarter of a Fund’s taxable year, not more than 25% of the value of its total assets may be invested in securities (other than U.S. government securities or the securities of other RICs) of any one issuer, in securities (other than securities of other RICs) of two or more issuers that the Fund controls and which are engaged in the same, similar, or related trades or businesses, or in securities of one or more qualified publicly traded partnerships.

If a Fund qualifies as a RIC and timely distributes to its shareholders substantially all of its net income and net capital gains, then the Fund should have little or no income taxable to it under the Code. A fund may designate certain amounts retained as undistributed net capital gain in a notice to its shareholders, who (i) will be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their proportionate shares of the undistributed amount so designated, (ii) will be entitled to credit their proportionate shares of the income tax paid by the fund on that undistributed amount against their federal income tax liabilities and to claim refunds to the extent such credits exceed their liabilities and (iii) will be entitled to increase their tax basis, for federal income tax purposes, in their shares by an amount equal to the excess of the amount of undistributed net capital gain included in their respective income over their respective income tax credits.

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For U.S. federal income tax purposes, a fund is permitted to carry forward a net capital loss for any year to offset its capital gains, if any, for up to eight years following the year of the loss. To the extent subsequent capital gains are offset by such losses, they will not result in U.S. federal income tax liability to the fund and may not be distributed as such to shareholders. The Funds may not carry forward any losses other than net capital losses.

Assuming a Fund has sufficient earnings and profits, its shareholders generally are required to include distributions from the Fund (whether paid in cash or reinvested in additional shares) either as ordinary income, to the extent the distributions are attributable to the Fund’s investment income (except for qualified dividend income as discussed below), net short-term capital gain, and certain net realized foreign exchange gains, or as capital gains, to the extent of the Fund’s net capital gain (i.e., the Fund’s net long-term capital gains over net short-term capital losses). If a Fund fails to qualify as a RIC or fails to meet the Distribution Requirement, the Fund will be subject to U.S. federal, and possibly state, corporate taxes on its taxable income and gains, and distributions to its shareholders will constitute ordinary dividend income to the extent of the Fund’s available earnings and profits.

A Fund will be subject to a nondeductible 4% excise tax to the extent it fails to distribute by the end of any calendar year substantially all of its ordinary income (for that calendar year) and capital gain net income (for the one-year period generally ending on October 31 of that year), increased or decreased by certain other amounts. Each Fund intends to distribute annually a sufficient amount of any taxable income and capital gains so as to avoid liability for this excise tax.

U.S. federal income tax law generally provides for a maximum tax rate for individual taxpayers of 15% on long-term capital gains and on certain dividends on corporate stock. These rates do not apply to corporate taxpayers. Under current law, the rates will not apply to any taxpayers in taxable years beginning after December 31, 2010. The following are guidelines for how certain distributions by the Funds to individual taxpayers are generally treated for U.S. federal income tax purposes:

• Distributions of net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) will be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets).

• Distributions designated by a Fund as “qualified dividend income,” as described below, may also be taxed at a maximum rate of 15% (5% for individuals in the 10% and 15% federal tax brackets).

• Other distributions, including distributions of earnings from other dividends paid to the Fund, interest income, other types of ordinary income and short-term capital gains, will be taxed at the ordinary income tax rate applicable to the taxpayer.

Qualified dividend income generally means dividend income received from a Fund’s investments in common and preferred stock of U.S. companies and stock of certain “qualified foreign corporations,” provided that certain holding period and other requirements are met by both the Fund and the shareholders. If 95% or more of a Fund’s gross income (calculated without taking into account net capital gain derived from sales or other dispositions of stock or securities) consists of qualified dividend income, that Fund may designate all distributions of such income as qualified dividend income.

A foreign corporation is treated as a qualified foreign corporation for this purpose if it is incorporated in a possession of the United States or it is eligible for the benefits of certain income tax treaties with the United States and meets certain additional requirements. Certain foreign corporations that are not otherwise qualified foreign corporations will be treated as qualified foreign corporations with respect to dividends paid by them if the stock with respect to which the dividends are paid is readily tradable on an established securities market in the United States. Passive foreign investment companies are not qualified foreign corporations for this purpose.

A dividend that is attributable to qualified dividend income of a Fund and that is paid by the Fund to a shareholder will not be taxable as qualified dividend income to such shareholder (1) if the dividend is received with respect to any share of the Fund held for fewer than 61 days during the 121-day period beginning on the date which is 60 days before the date on which such share became ex-dividend with respect to such dividend, (2) to the extent that the shareholder is under an obligation (whether pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property, or (3) if the shareholder elects to have the dividend treated as investment income for purposes of the limitation on deductibility of investment interest. The “ex-dividend” date is the date on which the

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owner of the share at the commencement of such date is entitled to receive the next issued dividend payment for such share even if the share is sold by the owner on that date or thereafter.

Certain dividends received by a Fund from U.S. corporations (generally, dividends received by the Fund in respect of any share of stock (1) with a tax holding period of at least 46 days during the 91-day period beginning on the date that is 45 days before the date on which the stock becomes ex-dividend as to that dividend and (2) that is held in an unleveraged position) and distributed and designated by the Fund may be eligible for the 70% dividends-received deduction generally available to corporations under the Code. Certain preferred stock must have a holding period of at least 91 days during the 181-day period beginning on the date that is 90 days before the date on which the stock becomes ex-dividend as to that dividend in order to be eligible. Capital gain dividends distributed to a Fund from other RICs are not eligible for the dividends-received deduction. In order to qualify for the deduction, corporate shareholders must meet the minimum holding period requirement stated above with respect to their Fund shares, taking into account any holding period reductions from certain hedging or other transactions or positions that diminish their risk of loss with respect to their Fund shares, and, if they borrow to acquire or otherwise incur debt attributable to Fund shares, they may be denied a portion of the dividends-received deduction with respect to those shares. The entire dividend, including the otherwise deductible amount, will be included in determining the excess, if any, of a corporation’s adjusted current earnings over its alternative minimum taxable income, which may increase a corporation’s alternative minimum tax liability. Any corporate shareholder should consult its tax adviser regarding the possibility that its tax basis in its shares may be reduced, for U.S. federal income tax purposes, by reason of “extraordinary dividends” received with respect to the shares and, to the extent such basis would be reduced below zero, current recognition of income may be required.

Distributions by a Fund in excess of its current and accumulated earnings and profits will be treated as a return of capital to the extent of (and in reduction of) the shareholder’s tax basis in its shares, and any such amount in excess of that basis will be treated as gain from the sale of shares, as discussed below.

Any Fund distribution will have the effect of reducing the per share net asset value of shares in the Fund by the amount of the distribution. Shareholders purchasing shares shortly before the record date of any distribution that is not declared daily may thus pay the full price for the shares and then effectively receive a portion of the purchase price back as a taxable distribution.

The U.S. federal income tax status of all distributions, including the portion of such distributions which may qualify for treatment as qualified dividend income, will be reported to shareholders annually.

Although dividends generally will be treated as distributed when paid, any dividend declared by a Fund in October, November or December, payable to shareholders of record during such a month, and paid during the following January will be treated for U.S. federal income tax purposes as received by shareholders on December 31 of the calendar year in which it was declared. In addition, certain other distributions made after the close of a taxable year of a Fund may be “spilled back” and treated for certain purposes as paid by the relevant Fund during such taxable year. In such case, shareholders generally will be treated as having received such dividends in the taxable year in which the distributions were actually made. For purposes of calculating the amount of a regulated investment company’s undistributed income and gain subject to the 4% excise tax described above, such “spilled back” dividends are treated as paid by the regulated investment company when they are actually paid.

If a Fund is the holder of record of any stock on the record date for any dividends payable with respect to such stock, such dividends will be included in the Fund’s gross income not as of the date received, but as of the later of (a) the date such stock became ex-dividend with respect to such dividends (i.e., the date on which a buyer of the stock would not be entitled to receive the declared, but unpaid dividends), or (b) the date the Fund acquired such stock. Accordingly, in order to satisfy its income distribution requirements, a Fund may be required to pay dividends based on anticipated earnings, and shareholders may receive dividends in an earlier year than would otherwise be the case.

Upon the sale or other disposition of Fund shares, or upon receipt of a distribution in complete liquidation of a Fund, a shareholder usually will realize a capital gain or loss. This capital gain or loss may be long-term or short-term, generally depending upon the shareholder’s holding period for the shares. For tax purposes, a loss will be disallowed on the sale or exchange of shares if the disposed of shares are replaced (including shares acquired pursuant to a dividend reinvestment plan) within a 61-day

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period beginning 30 days before and ending 30 days after the date of the sale or exchange of such shares. Should the replacement of such shares fall within this 61-day window, the basis of the acquired shares will be adjusted to reflect the disallowed loss. Any loss realized by a shareholder on its disposition of Fund shares held by the shareholder for six months or less will be treated as a long-term capital loss to the extent of any amounts treated as distributions to the shareholder of long-term capital gain with respect to such shares (including any amounts credited to the shareholder as undistributed capital gains).

Under Treasury regulations, if a shareholder recognizes a loss with respect to Fund shares of $2 million or more for an individual shareholder, or $10 million or more for a corporate shareholder, in any single taxable year (or certain greater amounts over a combination of years), the shareholder must file with the IRS a disclosure statement on Form 8886. Shareholders who own portfolio securities directly are in many cases excepted from this reporting requirement but, under current guidance, shareholders of regulated investment companies are not excepted. A shareholder who fails to make the required disclosure to the IRS may be subject to substantial penalties. The fact that a loss is reportable under these regulations does not affect the legal determination of whether or not the taxpayer’s treatment of the loss is proper. Shareholders should consult with their tax advisers to determine the applicability of these regulations in light of their individual circumstances.

Dividends and interest received by a Fund may be subject to income, withholding or other taxes imposed by foreign countries and U.S. possessions that would reduce the yield on its securities. However, tax conventions between certain countries and the United States may reduce or eliminate these foreign taxes. In addition, many foreign countries do not impose taxes on capital gains in respect of investments by foreign investors, and most U.S. tax conventions preclude the imposition of such taxes. It is not possible, however, to determine a Fund’s effective rate of foreign tax in advance since the amount of the Fund’s assets to be invested within various countries is not known.

The payment of any such taxes will reduce the amount of dividends and distributions paid to a Fund’s shareholders. If a Fund qualifies as a RIC and meets the Distribution Requirement, and if more than 50% of such Fund’s assets at the close of the taxable year consist of stock or securities of foreign corporations, the Fund may elect to pass through to its shareholders their pro rata shares of qualified foreign income taxes paid by the Fund for that taxable year. If a Fund makes such an election, the shareholders of that Fund are required to include in their gross incomes their pro rata shares of qualified foreign income taxes paid by the Fund, but each shareholder may be entitled to a deduction for such taxes or to a tax credit, subject to certain limitations in the Code. The amount of any foreign tax credit that is available may be limited to the extent that dividends from a foreign corporation qualify for the reduced maximum U.S. federal non-corporate income tax rate applicable to qualified dividend income. If a Fund is not qualified or does not elect to pass through foreign taxes, the Fund will not be able to pass through to its shareholders any share of any foreign taxes paid by the Fund, with the result that shareholders will not include such taxes in their gross incomes and will not be entitled to a deduction or credit for such taxes on their own tax returns.

Passive Foreign Investment Companies. — Certain Funds may invest in the stock of “passive foreign investment companies” (“PFICs”). A PFIC is a foreign corporation that, in general, meets either of the following tests: (1) at least 75% of its gross income is derived from passive investments; or (2) an average of at least 50% of its assets held during the taxable year produce, or are held for the production of, passive income. Under certain circumstances, a Fund will be subject to federal income tax on gain from the disposition of PFIC shares and on certain distributions from a PFIC (collectively, “excess distributions”), plus interest thereon, even if the Fund distributes the excess distributions as a taxable dividend to its shareholders. If a Fund invests in a PFIC and elects in the first year in which it holds such investment (or if it elects subsequently and makes certain other elections) to treat the PFIC as a “qualified electing fund,” then in lieu of the foregoing tax and interest obligation, the Fund will be required to include in income each year its pro rata share of the qualified electing fund’s annual ordinary earnings and net capital gain (the excess of net long-term capital gains over net short-term capital losses). This income inclusion is required even if the PFIC does not distribute such income and gains to the Fund, and the amounts so included would be subject to the Distribution Requirement described above. In many instances it will be very difficult, if not impossible, to make this election because of certain requirements thereof. In order to distribute any such income and gains and satisfy the distribution requirements applicable to RICs, a Fund may be required to liquidate portfolio securities that it might otherwise have continued to hold, potentially resulting in additional taxable gain or loss to the Fund.

A Fund may, in the alternative, elect to mark to market its PFIC stock at the end of each taxable year, with the result that unrealized gains are treated as though they were realized as of such date. Any such gains will be ordinary income rather than capital gain. In order for a Fund making this election to distribute any such income and

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gains and satisfy the distribution requirements applicable to RICs, the Fund may be required to liquidate portfolio securities that it might otherwise have continued to hold, potentially resulting in additional taxable gain or loss to the Fund. If the mark-to-market election were made, tax at the Fund level under the excess distribution rules would be eliminated, but a Fund could still incur nondeductible interest charges if it makes the mark-to-market election in a year after the first taxable year in which it acquired the PFIC stock.

Options, Futures and Forward Contracts and Swap Agreements. — Certain options, futures contracts, and forward contracts in which a Fund may invest may be “Section 1256 contracts.” Gains or losses on Section 1256 contracts generally are considered 60% long-term and 40% short-term capital gains or losses; however, foreign currency gains or losses arising from certain Section 1256 contracts may be treated as ordinary income or loss. Also, Section 1256 contracts held by a Fund at the end of each taxable year (and at certain other times as prescribed pursuant to the Code) are “marked to market” with the result that unrealized gains or losses are treated as though they were realized. In order to distribute any such gains, satisfy the distribution requirements applicable to RICs and avoid taxation, a Fund may be required to liquidate portfolio securities that it might otherwise have continued to hold, potentially resulting in additional taxable gain or loss to the Fund.

Generally, the hedging transactions undertaken by a Fund may result in “straddles” for U.S. federal income tax purposes. The straddle rules may affect the character of gains (or losses) realized by a Fund. In addition, losses realized by a Fund on positions that are part of a straddle may be deferred under the straddle rules, rather than being taken into account in calculating the taxable income for the taxable year in which such losses are realized. Because only a few regulations implementing the straddle rules have been promulgated, the tax consequences of transactions in options, futures, forward contracts, swap agreements and other financial contracts to a Fund are not entirely clear. The transactions may increase the amount of short-term capital gain realized by a Fund which is taxed as ordinary income when distributed to shareholders.

A Fund may make one or more of the elections available under the Code which are applicable to straddles. If a Fund makes any of the elections, the amount, character and timing of the recognition of gains or losses from the affected straddle positions will be determined under rules that vary according to the election(s) made. The rules applicable under certain of the elections may operate to accelerate the recognition of gains or losses from the affected straddle positions.

Because application of the straddle rules may affect the character of gains or losses, defer losses and/or accelerate the recognition of gains or losses from the affected straddle positions, the amount which must be distributed to shareholders, and which will be taxed to shareholders as ordinary income or long-term capital gain, may be increased or decreased as compared to a Fund that did not engage in such hedging transactions.

Because only a few regulations regarding the treatment of swap agreements, and related caps, floors and collars, have been implemented, the tax consequences of such transactions are not entirely clear. The Funds intend to account for such transactions in a manner deemed by them to be appropriate, but the Internal Revenue Service might not accept such treatment. If it did not, the status of a Fund as a RIC might be affected.

The requirements applicable to a Fund’s qualification as a RIC may limit the extent to which a Fund will be able to engage in transactions in options, futures contracts, forward contracts, swap agreements and other financial contracts.

Certain hedging activities may cause a dividend that would otherwise be subject to the lower tax rate applicable to a qualified dividend income to instead be taxed at the rate of tax applicable to ordinary income.

Original Issue Discount. — If a Fund invests in certain pay-in-kind securities, zero coupon securities, deferred interest securities or, in general, any other securities with original issue discount (or with market discount if the Fund elects to include market discount in income currently), the Fund generally must accrue income on such investments for each taxable year, which generally will be prior to the receipt of the corresponding cash payments. However, each Fund must distribute to its shareholders, at least annually, all or substantially all of its investment company taxable income (determined without regard to the deduction for dividends paid), including any such accrued income, to qualify for treatment as a regulated investment company under the Code and avoid U.S. federal income and excise taxes. Therefore, a Fund may have to dispose of its portfolio securities to generate cash, or may have to borrow the cash, to satisfy distribution requirements. Such a disposition of securities may potentially result in additional taxable gain or loss to a Fund.

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Constructive Sales. — These rules may affect timing and character of gain if a Fund engages in transactions that reduce or eliminate its risk of loss with respect to appreciated financial positions. If a Fund enters into certain transactions in property while holding substantially identical property, the Fund will be treated as if it had sold and immediately repurchased the property and will be taxed on any gain (but not loss) from the constructive sale. The character of any gain from a constructive sale will depend upon the Fund’s holding period in the property. Any loss from a constructive sale will be recognized when the property is subsequently disposed of, and the character of such loss will depend on the Fund’s holding period and the application of various loss deferral provisions of the Code.

Foreign Currency Transactions. — Under the Code, gains or losses attributable to fluctuations in exchange rates which occur between the time a Fund accrues income or expenses denominated in a foreign currency (or determined by reference to the value of one or more foreign currencies) and the time that a Fund actually receives or makes payment of such income or expenses, generally are treated as ordinary income or ordinary loss. Similarly, on disposition of debt securities denominated in a foreign currency and on disposition of certain futures contracts, forward contracts and options, gains or losses attributable to fluctuations in the value of foreign currency between the date of acquisition of the security or contract and the date of disposition generally are also treated as ordinary gain or loss.

Backup Withholding. — Each Fund is required to withhold (as “backup withholding”) 28% of reportable payments, including dividends, capital gain distributions and the proceeds of redemptions and exchanges or repurchases of fund shares (except for proceeds of redemptions of Transamerica Premier Cash Reserve Fund shares), paid to shareholders who have not complied with certain IRS regulations. In order to avoid this withholding requirement, shareholders, other than certain exempt entities, must certify that the Social Security Number or other Taxpayer Identification Number they provide is correct and that they are not currently subject to backup withholding, or that they are exempt from backup withholding. A Fund may nevertheless be required to backup withhold if it receives notice from the IRS or a broker that the number provided is incorrect or backup withholding is applicable as a result of previous underreporting of interest or dividend income.

Taxation of Non-U.S. Shareholders. — Dividends from net investment income that are paid to a shareholder who, as to the United States, is a nonresident alien individual, a foreign corporation or a foreign estate or foreign trust (each, a “foreign shareholder”) may be subject to a withholding tax at a rate of 30% or any lower applicable tax rate established in a treaty between the United States and the shareholder’s country of residence. For Fund taxable years beginning before January 1, 2010, dividends that are derived from “qualified net interest income” and dividends that are derived from “qualified short-term gain” may be exempt from the 30% withholding tax, provided that the distributing Fund chooses to follow certain procedures. A Fund may choose to not follow such procedures and there can be no assurance as to the amount, if any, of dividends that would not be subject to withholding. Qualified net interest income is a Fund’s net income derived from U.S.-source interest and original issue discount, subject to certain exceptions and limitations. Qualified short-term gain generally means the excess of the net short-term capital gain of the Fund for the taxable year over its net long-term capital loss, if any. The withholding rules described in this paragraph do not apply to a dividend paid to a foreign shareholder if the dividend income is effectively connected with the shareholder’s conduct of a trade or business within the United States and the shareholder provides appropriate tax forms and documentation. Backup withholding (described above) will not be imposed on foreign shareholders who are subject to the 30% withholding tax.

The treatment of dividends and other distributions by a Fund to shareholders under the various state income tax laws may not parallel that under U.S. federal income tax law. Qualification as a RIC does not involve supervision of a Fund’s management or of its investment policies and practices by any governmental authority.

Shareholders are urged to consult their own tax advisors with specific reference to their own tax situations, including any federal, state, local or foreign tax liabilities.

PRINCIPAL SHAREHOLDERS

As of April 1, 2009, the Directors and officers as a group owned less than 1% of any class of each Fund’s outstanding shares. To the knowledge of management, as of that date, no shareholders owned beneficially or of record 5% or more of the outstanding shares of a Fund, except as follows:

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			% of Shares of
Name and Address	Fund Name	Class	Beneficial Interest
National Financial Services New York, NY 10281-5503	Transamerica Premier Balanced Fund	Investor		53.01	%
Prudential Investment Mgmt Svcs For Newark, NJ 07102	Transamerica Premier Balanced Fund	Investor		14.92	%
Charles Schwab & Co Inc San Francisco, CA 94104-4151	Transamerica Premier Balanced Fund	Investor		9.91	%
Transamerica Investment Services Dayton, OH 45402-1127	Transamerica Premier Cash Reserve Fund	Investor		12.00	%
National Financial Services New York, NY 10281-5598	Transamerica Premier Diversified Equity Fund	Investor		50.89	%
Kansas Postsecondary Education Kansas City, MO 64141-6200	Transamerica Premier Diversified Equity Fund	Investor		14.63	%
Kansas Postsecondary Education Kansas City, MO 64141-6200	Transamerica Premier Diversified Equity Fund	Investor		13.30	%
Kansas Postsecondary Education Kansas City, MO 64141-6200	Transamerica Premier Diversified Equity Fund	Investor		6.25	%
Charles Schwab & Co Inc San Francisco, CA 94104-4151	Transamerica Premier Equity Fund	Investor		48.50	%
National Financial Services New York, NY 10281-5503	Transamerica Premier Equity Fund	Investor		25.80	%
National Financial Services New York, NY 10281-5503	Transamerica Premier Focus Fund	Investor		23.83	%
ARC Reinsurance Corporation Cedar Rapids, IA 52499-0001	Transamerica Premier Focus Fund	Investor		21.12	%
Charles Schwab & Co Inc San Francisco, CA 94104-4151	Transamerica Premier Focus Fund	Investor		10.45	%
National Financial Services New York, NY 10281-5503	Transamerica Premier Growth Opportunities Fund	Investor		44.96	%
ARC Reinsurance Corporation Cedar Rapids, IA 52499-0001	Transamerica Premier Growth Opportunities Fund	Investor		18.40	%
Charles Schwab & Co Inc San Francisco, CA 94104-4151	Transamerica Premier Growth Opportunities Fund	Investor		7.96	%
National Financial Services New York, NY 10281-5503	Transamerica Premier High Yield Bond Fund	Institutional		100.00	%
National Financial Services New York, NY 10281-5598	Transamerica Premier High Yield Bond Fund	Investor		60.20	%
Charles Schwab & Co Inc San Francisco, CA 94104-4151	Transamerica Premier High Yield Bond Fund	Investor		8.87	%
Ameritrade Inc For The Omaha, NE 68103-2226	Transamerica Premier High Yield Bond Fund	Investor		6.44	%
Transamerica Investment Management Dayton, OH 45402-1127	Transamerica Premier Institutional Bond Fund	Institutional		100.00	%
Transamerica Investment Management Dayton, OH 45402-1127	Transamerica Premier Institutional Diversified Equity Fund	Institutional		99.73	%

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			% of Shares of
Name and Address	Fund Name	Class	Beneficial Interest
Charles Schwab & Co Inc San Francisco, CA 94104-4151	Transamerica Premier Institutional Equity Fund	Institutional		32.18	%
Reliance Trust Company Ttee Atlanta, GA 30362-1529	Transamerica Premier Institutional Equity Fund	Institutional		26.25	%
SEI Private Trust Company Oaks, PA 19456	Transamerica Premier Institutional Equity Fund	Institutional		7.95	%
Reliance Trust Company Ttee Atlanta, GA 30362-1529	Transamerica Premier Institutional Equity Fund	Institutional		5.71	%
SEI Private Trust Company Oaks, PA 19456	Transamerica Premier Institutional Equity Fund	Institutional		5.29	%
Charles Schwab & Co Inc San Francisco, CA 94104-4151	Transamerica Premier Institutional Small Cap Value Fund	Institutional		18.53	%
Transamerica Investment Management Dayton, OH 45402-1127	Transamerica Premier Institutional Small Cap Value Fund	Institutional		14.41	%
National Financial Services New York, NY 10281-5503	Transamerica Premier Institutional Small Cap Value Fund	Institutional		11.92	%
Pershing LLC Jersey City, NJ 07303-2052	Transamerica Premier Institutional Small Cap Value Fund	Institutional		8.22	%
Trustlynx & Co Denver, CO 80217-3736	Transamerica Premier Institutional Small Cap Value Fund	Institutional		5.57	%

MISCELLANEOUS

ORGANIZATION

Transamerica Investors, Inc. was organized as a Maryland corporation on February 22, 1995. The Company is registered with the SEC under the 1940 Act as an open-end management investment company of the series type. Each Fund constitutes a separate series of the Company. All series, except Transamerica Premier Focus Fund, are diversified investment companies. Transamerica Premier Focus Fund, Transamerica Premier Equity Fund, Transamerica Premier Growth Opportunities Fund, Transamerica Premier Diversified Equity Fund, Transamerica Premier Balanced Fund and Transamerica Premier Cash Reserve Fund each have one class of shares, Investor Class Shares. Transamerica Premier High Yield Bond Fund has two classes of shares, Investor Class and Institutional Class Shares. Transamerica Premier Institutional Small Cap Value Fund, Transamerica Premier Institutional Diversified Equity Fund, Transamerica Premier Institutional Bond Fund and Transamerica Premier Institutional Equity Fund are separate institutional series of the Company. For more information about the series of the Company call 1-800-892-7587. The Company reserves the right to issue additional classes of shares in the future without the consent of shareholders, and can allocate any remaining unclassified shares or reallocate any unissued classified shares. The fiscal year-end of the Company is December 31.

Except for the differences noted, each share of a Fund has equal dividend, redemption and liquidation rights with other shares of the Fund and when issued, is fully paid and nonassessable. Each share of each class of a Fund represents an identical legal interest in the investments of the Fund. Each class has certain expenses related solely to that class. Each class will have exclusive voting rights under any 12b-1 distribution plan related to that class. In the event that a special meeting of shareholders is called, separate votes are taken by each class only if a matter affects, or requires the vote of, that class. Although the legal rights of holders of each class of shares are identical, it is likely that the difference in expenses will result in different net asset values and dividends. The classes may have different exchange privileges.

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As a Maryland corporation, the Company is not required to hold regular annual meetings of shareholders. Ordinarily there will be no shareholder meetings, unless requested by shareholders holding 10% or more of the outstanding shares of the Company, or unless required by the 1940 Act or Maryland law. You are entitled to cast one vote for each share you own of each Fund. At a special shareholders meeting, if one is called, issues that affect all the Funds in substantially the same way will be voted on by all shareholders, without regard to the Funds. Issues that do not affect a Fund will not be voted on by the shareholders of that Fund. Issues that affect all Funds, but in which their interests are not substantially the same, will be voted on separately by each Fund.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Ernst & Young LLP, 725 South Figueroa Street, Los Angeles, California 90017, serves as independent registered public accounting firm for the Funds.

CODE OF ETHICS

The Company, TAM, TIM and TCI each has adopted a code of ethics, as required by applicable law, which is designed to prevent affiliated persons of the Company, TAM, TIM and TCI from engaging in deceptive, manipulative or fraudulent activities in connection with securities held or to be acquired by the Funds (which may also be held by persons subject to a code of ethics). There can be no assurances that the codes of ethics will be effective in preventing such activities.

PROXY VOTING POLICIES AND PROCEDURES

As detailed in the Transamerica Investors, Inc.’s Proxy Voting Policies and Procedure below, Transamerica Investors, Inc. uses the proxy voting policies and procedures of the sub-adviser to determine how to vote proxies relating to securities held by the Company. The proxy voting policies and procedures of TAM and TIM are attached or summarized in Appendix B.

The Funds are required to file Form N-PX with their complete proxy voting records for the 12 months ended June 30^th, no later than August 31^st of each year. The Form is available without charge: (1) from the Funds, upon request by calling 1-800-89-ASK-US (1-800-892-7587); and (2) on the SEC’s website at www.sec.gov.

FINANCIAL STATEMENTS

The audited financial statements of the Funds for the fiscal year ended December 31, 2008, and the report of the Company’s independent registered public accounting firm, which are included in the Annual Report of the Company (Accession Number: 0001104659-09-015539), are incorporated herein by reference.

BOND RATINGS

Securities ratings are based largely on the issuer’s historical financial condition and the rating agencies’ investment analysis at the time of rating. Consequently, the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition, which may be better or worse than the rating would indicate.

Although securities ratings are considered when making investment decisions, the Investment Adviser performs its own investment analysis and does not rely principally on the ratings assigned by the rating services. This analysis may include consideration of the issuer’s experience and managerial strength, changing financial condition, borrowing requirements or debt maturity schedules, and its responsiveness to changes in business conditions and interest rates. Relative values based on anticipated cash flow, interest or dividend coverage, asset coverage and earnings prospects are also considered.

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Because of the greater number of considerations involved in investing in lower-rated securities, the achievement of Transamerica Premier High Yield Bond Fund’s objectives depends more on the analytical abilities of the investment team than is the case with Transamerica Premier Balanced Fund, which invests primarily in securities in the higher rating categories.

For more detailed information on bond ratings, including gradations within each category of quality, see Appendix A.

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APPENDIX A

DESCRIPTION OF CORPORATE BOND RATINGS

Moody’s Investors Service, Inc. and Standard and Poor’s Corporation are two prominent independent rating agencies that rate the quality of bonds. Following are expanded explanations of the ratings shown in the prospectuses.

Moody’s Investors Service, Inc.

Aaa: Bonds with this rating are judged to be of the best quality. They carry the smallest degree of investment risk. Interest payments are protected by a large or exceptionally stable margin and principal is secure.

Aa: Bonds with this rating are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude.

A: Bonds with this rating possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility to impairment sometime in the future.

Baa: Bonds with this rating are considered as medium grade obligations, i.e.; they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well.

Ba: Bonds with this rating are judged to have speculative elements; their future cannot be considered as well-assured. Often the protection of interest and principal payments may be very moderate and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class.

B: Bonds with this rating generally lack characteristics of desirable investments. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small.

Caa: Bonds with this rating are of poor standing. Such issues may be in default or there may be present elements of danger with respect to principal or interest.

Ca: Bonds with this rating represent obligations which are speculative to a high degree. Such issues are often in default or have other marked shortcomings.

C: Bonds with this rating are the lowest rated class of bonds. Issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing.

Moody’s applies numerical modifiers 1, 2 and 3 in each generic rating classification from Aa through B in its corporate bond rating system. The modifier 1 indicates that the security ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates that the issue ranks in the lower end of its generic rating category.

Generally, investment-grade debt securities are those rated Baa3 or better by Moody’s.

Standard & Poor’s Corporation

AAA: This rating is the highest rating assigned by Standard & Poor’s and is indicative of a very strong capacity to pay interest and repay principal.

AA: This rating indicates a very strong capacity to pay interest and repay principal and differs from the higher rated issues only by a small degree.

A: This rating indicates a strong capacity to pay interest and repay principal, although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.

A-1

BBB: This rating indicates an adequate capacity to pay interest and repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher rated categories.

BB, B, CCC, CC: These ratings indicate, on balance, a predominantly speculative capacity of the issuer to pay interest and repay principal in accordance with the terms of the obligation. BB indicates the lowest degree of speculation and CC the highest degree of speculation. While such debt will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.

C: This rating is reserved for income bonds on which no interest is being paid.

D: This rating indicates debt in default, and payment of interest and/or repayment of principal are in arrears.

The ratings from AA to B may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories, for example A or B+.

Generally, investment-grade debt securities are those rated BBB or better by Standard & Poor’s.

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APPENDIX B

Transamerica Asset Management, Inc.

PROXY VOTING POLICIES AND PROCEDURES (“TAM Proxy Policy”)

I. Purpose

The TAM Proxy Policy is adopted in accordance with Rule 206(4)-6 under the Investment Advisers Act of 1940 (the “Advisers Act”) and TAM’s fiduciary and other duties to its clients. The purpose of the TAM Proxy Policy is to ensure that where TAM exercises proxy voting authority with respect to client securities it does so in the best interests of the client, and that Sub-Advisers (as defined below) to TAM clients exercise voting authority with respect to TAM client securities in accordance with policies and procedures adopted by the Sub-Advisers under Rule 206(4)-6 and approved by the TAM client.

II. TAM’s Advisory Activities

TAM acts as investment adviser to Transamerica Funds, Transamerica Income Shares, Inc., Transamerica Investors, Inc., Transamerica Partners Portfolios, Transamerica Asset Allocation Variable Funds, The Transamerica Partners Funds Group, The Transamerica Partners Funds Group II and Transamerica Series Trust (collectively, the “Funds”). For most of the investment portfolios comprising the Funds, TAM has delegated day-to-day management of the portfolio, including the authority to buy, sell, or hold securities in the portfolio and to exercise proxy voting authority with respect to those securities, to one or more investment sub-advisers, pursuant to sub-advisory agreements entered into between TAM and each sub-adviser (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”) and approved by the Board of Trustees/Directors of the client Fund (the “Board”). TAM serves as a “manager of managers” with respect to the Sub-Advisers and monitors their activities in accordance with the terms of an exemptive order granted by the Securities and Exchange Commission (Release No. IC-23379, August 5, 1998).

III. Summary of the TAM Proxy Policy

TAM delegates the responsibility to exercise voting authority with respect to securities held in the Funds’ portfolios for which one or more Sub-Advisers has been retained to the Sub-Adviser(s) for each such portfolio, in accordance with each applicable Sub-Adviser Proxy Policy (as defined below). TAM will collect and review each Sub-Adviser Proxy Policy, together with a certification from the Sub-Adviser that the Sub-Adviser Proxy Policy complies with Rule 206(4)-6, and submit these materials to the Board for approval. In the event that TAM is called upon to exercise voting authority with respect to client securities, TAM generally will vote in accordance with the recommendation of Institutional Shareholder Services, Inc. (“ISS”) or another qualified independent third party, except that if TAM believes the recommendation would not be in the best interest of the relevant portfolio and its shareholders, TAM will consult the Board of the relevant Fund (or a Committee of the Board) and vote in accordance with instructions from the Board or Committee.

IV. Delegation of Proxy Voting Authority to Sub-Advisers

TAM delegates to each Sub-Adviser the responsibility to exercise voting authority with respect to securities held by the portfolio(s), or portion thereof, managed by the Sub-Adviser. Each Sub-Adviser is responsible for monitoring, evaluating and voting on all proxy matters with regard to investments the Sub-Adviser manages for the Funds in accordance with the Sub-Adviser’s proxy voting policies and procedures adopted to comply with Rule 206(4)-6 (each, a “Sub-Adviser Proxy Policy” and collectively, the “Sub-Adviser Proxy Policies”).

V. Administration, Review and Submission to Board of Sub-Adviser Proxy Policies

     A. Appointment of Proxy Administrator

     TAM will appoint an officer to be responsible for collecting and reviewing the Sub-Adviser Proxy Policies and carrying out the other duties set forth herein (the “Proxy Administrator”).

     B. Initial Review

          1. The Proxy Administrator will collect from each Sub-Adviser:

               a) its Sub-Adviser Proxy Policy;

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               b) a certification from the Sub-Adviser that (i) its Sub-Adviser Proxy Policy is reasonably designed to ensure that the Sub-Adviser votes client securities in the best interest of clients, and that the Sub-Adviser Proxy Policy includes an explanation of how the Sub-Adviser addresses material conflicts that may arise between the Sub-Adviser’s interests and those of its clients, (ii) the Sub-Adviser Proxy Policy has been adopted in accordance with Rule 206(4)-6, and (iii) the Sub-Adviser Proxy Policy complies the terms of Rule 206(4)-6; and

               c) a summary of the Sub-Adviser Proxy Policy suitable for inclusion in the client Fund’s registration statement, in compliance with Item 13(f) of Form N-1A, and a certification to that effect.

          2. The Proxy Administrator will review each Sub-Adviser Proxy Policy with a view to TAM making a recommendation to the Board. In conducting its review, TAM recognizes that the Securities and Exchange Commission has not adopted specific policies or procedures for advisers, or provided a list of approved procedures, but has left advisers the flexibility to craft policies and procedures suitable to their business and the nature of the conflicts they may face. As a consequence, Sub-Adviser Proxy Policies are likely to differ widely. Accordingly, the Proxy Administrator’s review of the Sub-Adviser Proxy Policies will be limited to addressing the following matters:

               a) whether the Sub-Adviser Proxy Policy provides that the Sub-Adviser votes solely in the best interests of clients;

               b) whether the Sub-Adviser Proxy Policy includes a description of how the Sub-Adviser addresses material conflicts of interest that may arise between the Sub-Adviser or its affiliates and its clients; and

               c) whether the Sub-Adviser Proxy Policy includes both general policies and procedures as well as policies with respect to specific types of issues (for this purpose general policies include any delegation to a third party, policies relating to matters that may substantially affect the rights or privileges of security holders, and policies regarding the extent of weight given to the view of the portfolio company management; specific issues include corporate governance matters, changes to capital structure, stock option plans and other management compensation issues, and social corporate responsibility issues, among others).

          3. The Proxy Administrator will review the certification provided pursuant to paragraph 1(b) above for completeness, and will review the summary provided pursuant to paragraph 1(c) above for compliance with the requirements of Form N-1A.

          4. TAM will provide to the Board (or a Board Committee), the materials referred to in Section V.B.1. and a recommendation pursuant to the Proxy Administrator’s review of the Sub-Adviser Proxy Policy provided for in Section V.B.2.

          5. TAM will follow the same procedure in connection with the engagement of any new Sub-Adviser.

     C. Subsequent Review

     TAM will request that each Sub-Adviser provide TAM with prompt notice of any material change in its Sub-Adviser Proxy Policy. TAM will report any such changes at the next quarterly Board meeting of the applicable Fund. No less frequently than once each calendar year, TAM will request that each Sub-Adviser provide TAM with its current Sub-Adviser Proxy Policy, or certify that there have been no material changes to its Sub-Adviser Proxy Policy or that all material changes have been previously provided for review by TAM and approval by the relevant Board(s), and that the Sub-Adviser Proxy Policy continues to comply with Rule 206(4)-6.

     D. Record of Proxy Votes Exercised by Sub-Adviser

     The Proxy Administrator, or a third party as permitted by regulations issued by the Securities and Exchange Commission (such as ISS), will maintain a record of any proxy votes (including the information called for in Items 1(a) through (i) of Form N-PX) exercised by the Sub-Adviser on behalf of a portfolio of the Funds. The Proxy Administrator, or a third party as permitted by regulations issued by the Securities and Exchange Commission (such as ISS), will maintain a complete proxy voting record with respect to each Fund. If TAM utilizes the services of a third party for maintaining the records above specified, TAM shall obtain an undertaking from the third party that it will provide the records promptly upon request.

VI. TAM Exercise of Proxy Voting Authority

     A. Use of Independent Third Party

     If TAM is called upon to exercise voting authority on behalf of a Fund client, TAM will vote in accordance with the recommendations of ISS or another qualified independent third party (the “Independent Third Party”), provided that TAM agrees that

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the voting recommendation issued by the Independent Third Party reflects the best interests of the relevant portfolio and its shareholders.

     B. Conflict with View of Independent Third Party

     If, in its review of the Independent Third Party recommendation, TAM believes that the recommendation is not in the best interests of the Fund client, TAM will submit to the Board (or a Board Committee) its reasons for disagreeing with the Independent Third Party, as well as full disclosure of any conflict of interest between TAM or its affiliates and the Fund in connection with the vote, and seek consent of the Board (or Committee) with respect to TAM’s proposed vote.

     C. Asset Allocation Portfolios

     For any asset allocation portfolio managed by TAM and operated, in whole or in part, as a “fund of funds”, TAM will vote proxies in accordance with the recommendations of the Board(s) of the Fund(s). If any such asset allocation portfolio holds shares of a registered investment company that is not a portfolio of a Fund, TAM will seek Board (or Committee) consent with respect to TAM’s proposed vote in accordance with the provisions of Section VI.B.

VII. Conflicts of Interest Between TAM or Its Affiliates and the Funds

     The TAM Proxy Voting Policy addresses material conflicts that may arise between TAM or its affiliates and the Funds by, in every case where TAM exercises voting discretion, either (i) providing for voting in accordance with the recommendation of the Independent Third Party or Board(s); or (ii) obtaining the consent of the Board (or a Board Committee) with full disclosure of the conflict.

VIII. Recordkeeping

     A. Records Generally Maintained

     In accordance with Rule 204-2(c)(2) under the Advisers Act, the Proxy Administrator shall cause TAM to maintain the following records:

          1. the TAM Proxy Voting Policy; and

          2. records of Fund client requests for TAM proxy voting information.

     B. Records for TAM Exercise of Proxy Voting Authority

     In accordance with Rule 204-2(c)(2) under the Advisers Act, if TAM exercises proxy voting authority pursuant to Section VI above, TAM, or a third party as permitted by regulations issued by the Securities and Exchange Commission (such as ISS), shall make and maintain the following records:

          1. proxy statements received regarding matters it has voted on behalf of Fund clients;

          2. records of votes cast by TAM; and

          3. copies of any documents created by TAM that were material to deciding how to vote proxies on behalf of Fund clients or that memorialize the basis for such a decision.

     If TAM utilizes the services of a third party for maintaining the records above specified, TAM shall obtain an undertaking from the third party that it will provide the records promptly upon request.

     C. Records Pertaining to Sub-Adviser Proxy Policies

     The Proxy Administrator will cause TAM and/or a third party as permitted by regulations issued by the Securities and Exchange Commission (such as ISS), to maintain the following records:

          1. each Sub-Adviser Proxy Policy; and

          2. the materials delineated in Article V above.

C-3

     If TAM utilizes the services of a third party for maintaining the records above specified, TAM shall obtain an undertaking from the third party that it will provide the records promptly upon request.

     D. Time Periods for Record Retention

     All books and records required to maintain under this Section VIII will be maintained in an easily accessible place for a period of not less than five years from the end of the fiscal year during which the last entry was made on the record, the first two years in an appropriate office of TAM.

IX. Provision of TAM Proxy Policy to Fund Clients

     The Proxy Administrator will provide each Fund’s Board (or a Board Committee) a copy of the TAM Proxy Policy at least once each calendar year.

Last Revised: July 1, 2008

Transamerica Investment Management, LLC

PROXY VOTING POLICY

INTRODUCTION

Normally, clients for which Transamerica Investment Management, LLC (“TIM”) has full discretionary investment authority expect TIM to vote proxies in accordance with TIM’s Proxy Voting Policy (the “Policy”). As such, TIM will vote on behalf of all accounts for which it has discretionary authority unless clients notify TIM in writing that they have retained the authority to vote their own proxies. Clients may also ask TIM to vote their proxies in accordance with specific Client Proxy guidelines.

STATEMENT OF POLICY

It is the policy of TIM to vote proxies in the best interest of its clients at all times.
TIM has proxy voting policy guidelines (the “Guidelines”) regarding certain issues that may come before shareholders from time to time. These Guidelines provide a roadmap for arriving at voting decisions and are not meant to be exhaustive of all issues that may be raised in any or all proxy ballots. The Guidelines are attached to this Policy as Appendix A.

PROXY COMMITTEE

In order to implement and monitor this Policy, TIM shall establish a Proxy Committee (the “Committee”), which will have responsibility for review of proxies voted by or to be voted by TIM, as well as to resolve issues which may arise in the process of voting proxies.

The Committee shall meet at a minimum annually and on an as needed basis. It shall not be required that the Committee members meet in person; in fact, it is contemplated that certain Committee members will take part in meetings via teleconference. The Committee shall consist of at least one Portfolio Manager, a member of the Legal/Compliance department, and other staff members of TIM as may be designated from time to time. Committee members may select designees in the event that they are unable to convene with the Committee.

It shall be the Committee’s responsibility to ensure that proxy votes are made in accordance with the Policy. Issues shall be raised to the Committee when needed and as appropriate to effectively carry out TIM’s proxy decisions. When applicable, the Committee shall review written materials pertinent to the vote at hand and shall hear verbal opinions from relevant portfolio managers and/or analysts as needed to fully consider the investment merits of the vote. Committee decisions and a record of Committee meetings shall be recorded and maintained by the Legal/Compliance department.

USE OF INDEPENDENT THIRD PARTY

TIM will maintain the services of a qualified independent third party (the “Independent Third Party”) to provide guidance on proxy voting issues. The Independent Third Party selected by TIM is RiskMetrics Group. TIM will consider the research provided by the Independent Third Party when making voting decisions on proxy issues, however, the final determination on voting rests with TIM.

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CONFLICTS OF INTEREST BETWEEN TIM AND CLIENTS

TIM recognizes the potential for material conflicts that may arise between its own interests and those of the Clients. To address these concerns, TIM will take one of the following steps to avoid any impropriety or the appearance of impropriety: a) Vote in accordance with the recommendation of the Independent Third Party; or b) Obtain the consent(s) of the Client(s) whose accounts are involved in the conflict.

PROVISION OF TIM PROXY POLICY TO CLIENTS

TIM will make available to all Clients a copy of its Policy by maintaining a current version of the Policy on its website (www.timllc.com). Also, a copy of the Policy will be mailed to any Client at any time upon request.

The following is a concise summary of TIM’s proxy voting policy guidelines.

1. Auditors

Vote FOR proposals to ratify auditors, unless any of the following apply:

• An auditor has a financial interest in or association with the company, and is therefore not independent

• Fees for non-audit services are excessive, or

• There is reason to believe that the independent auditor has rendered an opinion that is neither accurate nor indicative of the company’s financial position.

2. Board of Directors

Voting on Director Nominees in Uncontested Elections

Votes on director nominees should be made on a CASE-BY-CASE basis, examining the following factors: independence of the board and key board committees, attendance at board meetings, corporate governance provisions and takeover activity, long-term company performance, responsiveness to shareholder proposals, any egregious board actions, and any excessive non-audit fees or other potential auditor conflicts.

Classification/Declassification of the Board

Vote AGAINST proposals to classify the board.

Vote FOR proposals to repeal classified boards and to elect all directors annually.

Independent Chairman (Separate Chairman/CEO)

Vote on a CASE-BY-CASE basis shareholder proposals requiring that the positions of chairman and CEO be held separately. Because some companies have governance structures in place that counterbalance a combined position, certain factors should be taken into account in determining whether the proposal warrants support. These factors include the presence of a lead director, board and committee independence, governance guidelines, company performance, and annual review by outside directors of CEO pay.

Majority of Independent Directors/Establishment of Committees

Vote FOR shareholder proposals asking that a majority or more of directors be independent unless the board composition already meets the proposed threshold by TIM’s definition of independence.

Vote FOR shareholder proposals asking that board audit, compensation, and/or nominating committees be composed exclusively of independent directors if they currently do not meet that standard.

3. Shareholder Rights

Shareholder Ability to Act by Written Consent

Vote AGAINST proposals to restrict or prohibit shareholder ability to take action by written consent.

Vote FOR proposals to allow or make easier shareholder action by written consent.

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Shareholder Ability to Call Special Meetings

Vote AGAINST proposals to restrict or prohibit shareholder ability to call special meetings.

Vote FOR proposals that remove restrictions on the right of shareholders to act independently of management.

Supermajority Vote Requirements

Vote AGAINST proposals to require a supermajority shareholder vote.

Vote FOR proposals to lower supermajority vote requirements.

Cumulative Voting

Vote AGAINST proposals to eliminate cumulative voting.

Vote proposals to restore or permit cumulative voting on a CASE-BY-CASE basis relative to the company’s other governance provisions.

Confidential Voting

Vote FOR shareholder proposals requesting that corporations adopt confidential voting, use independent vote tabulators and use independent inspectors of election, as long as the proposal includes a provision for proxy contests as follows: In the case of a contested election, management should be permitted to request that the dissident group honor its confidential voting policy. If the dissidents agree, the policy remains in place. If the dissidents will not agree, the confidential voting policy is waived.

Vote FOR management proposals to adopt confidential voting.

4. Proxy Contests

Voting for Director Nominees in Contested Elections

Votes in a contested election of directors must be evaluated on a CASE-BY-CASE basis, considering the factors that include the long-term financial performance, management’s track record, qualifications of director nominees (both slates), and an evaluation of what each side is offering shareholders.

5. Poison Pills

Vote FOR shareholder proposals that ask a company to submit its poison pill for shareholder ratification. Review on a CASE-BY-CASE basis shareholder proposals to redeem a company’s poison pill and management proposals to ratify a poison pill.

6. Mergers and Corporate Restructurings

Vote CASE-BY-CASE on mergers and corporate restructurings based on such features as the fairness opinion, pricing, strategic rationale, and the negotiating process.

7. Reincorporation Proposals

Proposals to change a company’s state of incorporation should be evaluated on a CASE-BY-CASE basis, giving consideration to both financial and corporate governance concerns, including the reasons for reincorporating, a comparison of the governance provisions, and a comparison of the jurisdictional laws. Vote FOR reincorporation when the economic factors outweigh any neutral or negative governance changes.

8. Capital Structure

Common Stock Authorization

Votes on proposals to increase the number of shares of common stock authorized for issuance are determined on a CASE-BY-CASE basis.

Vote AGAINST proposals at companies with dual-Class Capital structures to increase the number of authorized shares of the class of stock that has superior voting rights.

Vote FOR proposals to approve increases beyond the allowable increase when a company’s shares are in danger of being delisted or if a company’s ability to continue to operate as a going concern is uncertain.

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Dual-class Stock

Vote AGAINST proposals to create a new class of common stock with superior voting rights.

Vote FOR proposals to create a new class of nonvoting or subvoting common stock if:

It is intended for financing purposes with minimal or no dilution to current shareholders

It is not designed to preserve the voting power of an insider or significant shareholder

9. Executive and Director Compensation

Votes with respect to compensation plans should be determined on a CASE-BY-CASE basis. TIM reviews Executive and Director compensation plans (including broad-based option plans) in the context of the transfer of shareholder wealth. This review encompasses not only a comparison of a plan relative to peer companies, but also on an absolute basis, considering the cost of the plan vs. the operating income and overall profitability of the firm in question.

Vote AGAINST equity plans that explicitly permit repricing or where the company has a history of repricing without shareholder approval.

Management Proposals Seeking Approval to Reprice Options

Vote AGAINST proposals by management seeking approval to reprice options.

Employee Stock Purchase Plans

Votes on employee stock purchase plans should be determined on a CASE-BY-CASE basis.

Vote FOR employee stock purchase plans where all of the following apply:

• Purchase price is at least 85 percent of fair market value

• Offering period is 27 months or less, and

• Potential voting power dilution (VPD) is ten percent or less.

Vote AGAINST employee stock purchase plans where any of the opposite conditions obtain.

Shareholder Proposals on Compensation

Vote on a CASE-BY-CASE basis for all other shareholder proposals regarding executive and director pay, taking into account company performance, pay level versus peers, pay level versus industry, and long term corporate outlook.

10. Social and Environmental Issues

These issues cover a wide range of topics, including consumer and public safety, environment and energy, general corporate issues, labor standards and human rights, military business, and workplace diversity.

In general, vote CASE-BY-CASE. While a wide variety of factors goes into each analysis, the overall principal guiding all vote recommendations focuses on how the proposal will enhance the economic value of the company.

APPENDIX C

TRANSAMERICA INVESTORS, INC.
PORTFOLIO MANAGER INFORMATION

AS OF DECEMBER 31, 2008

Transamerica Premier Focus Fund

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
			Assets				Assets				Assets
Portfolio Managers	Number		Managed		Number		Managed		Number		Managed
Edward S. Han		7	$	415,854,859		0	$	0		0	$	0
Kirk J. Kim		8	$	569,984,623		0	$	0		4	$	281,359,321
Joshua D. Shaskan		10	$	858,046,908		0	$	0		44	$	369,368,629

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	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
							Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Assets Managed
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Edward S. Han		0	$	0		0	$	0		0	$	0
Kirk J. Kim		0	$	0		0	$	0		0	$	0
Joshua D. Shaskan		0	$	0		0	$	0		0	$	0

Ownership of Securities

As of December 31, 2008, none of the portfolio managers beneficially owned shares of the Fund.

Transamerica Premier Equity Fund

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
							Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Assets Managed
Gary U. Rollé		12	$	3,457,180,425		2	$	151,847,771		69	$	1,200,245,339
Geoffrey I. Edelstein		3	$	1,595,289,052		2	$	53,905,465		85	$	67,199,600
Edward S. Han		7	$	415,854,859		0	$	0		0	$	0
John J. Huber		3	$	704,342,888		1	$	47,931,056		1	$	78,423,676
Peter O. Lopez		3	$	217,407,608		1	$	9,656,024		1	$	26,529,462
Erik U. Rollé		3	$	738,416,523		1	$	9,247,763		0	$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Gary U. Rollé		0	$	0		0	$	0		0	$	0
Geoffrey I. Edelstein		0	$	0		0	$	0		0	$	0
Edward S. Han		0	$	0		0	$	0		0	$	0
John J. Huber		0	$	0		0	$	0		0	$	0
Peter O. Lopez		0	$	0		0	$	0		0	$	0
Erik U. Rollé		0	$	0		0	$	0		0	$	0

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Ownership of Securities

As of December 31, 2008, none of the portfolio managers beneficially owned shares of the Fund, except Mr. Erik Rollé owned between 0-$10,000 of the Fund

Transamerica Premier Growth Opportunities Fund

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
							Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Assets Managed
Edward S. Han		7	$	415,854,859		0	$	0		0	$	0
John J. Huber		3	$	704,342,888		1	$	47,931,056		1	$	78,423,676
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Edward S. Han		0	$	0		0	$	0		0	$	0
John J. Huber		0	$	0		0	$	0		0	$	0

Ownership of Securities

As of December 31, 2008, Mr. Han beneficially owned $1 — $10,000 in the Fund, and Mr. Huber did not own any shares in the Fund.

Transamerica Premier Diversified Equity Fund

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
							Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Assets Managed
Gary U. Rollé		12	$	3,457,180,425		2	$	151,847,771		69	$	1,200,245,339
Geoffrey I. Edelstein		3	$	1,595,289,052		2	$	53,905,465		85	$	67,199,600
Kirk R. Feldhus		2	$	313,460,452		1	$	8,480,605		0	$	0
Thomas E. Larkin, III		0	$	0		0	$	0		0	$	0
John D. Lawrence		0	$	0		1	$	20,319,681		1	$	20,782,635
Peter O. Lopez		3	$	217,407,608		1	$	9,656,024		1	$	26,529,462
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Gary U. Rollé		0	$	0		0	$	0		0	$	0
Geoffrey I. Edelstein		0	$	0		0	$	0		0	$	0
Kirk R. Feldhus		0	$	0		0	$	0		0	$	0
Thomas E. Larkin, III		0	$	0		0	$	0		0	$	0
John D. Lawrence		0	$	0		0	$	0		0	$	0
Peter O. Lopez		0	$	0		0	$	0		0	$	0

Ownership of Securities

As of December 31, 2008, none of the portfolio managers beneficially owned shares of the Fund, except for Mr. Rollé, who beneficially owned over $1,000,000 in the Fund.

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Transamerica Premier Balanced Fund

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
							Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Assets Managed
Gary U. Rollé		12	$	3,457,180,425		2	$	151,847,771		69	$	1,200,245,339
Greg. D. Haendel		10	$	2,234,811,522		1	$	304,147,164		11	$	358,948,208
Derek S. Brown		3	$	912,986,961		0	$	0		15	$	1,563,937,895
Geoffrey I. Edelstein		3	$	1,595,289,052		2	$	53,905,465		85	$	67,199,600
Edward S. Han		7	$	415,854,859		0	$	0		0	$	0
John J. Huber		3	$	704,342,888		1	$	47,931,056		1	$	78,423,676
Peter O. Lopez		3	$	217,407,608		1	$	9,656,024		1	$	26,529,462
Erik U. Rollé		3	$	738,416,523		1	$	9,247,763		0	$	0
Brian W. Westhoff		7	$	416,127,852		0	$	0		2	$	32,030,243
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Gary U. Rollé		0	$	0		0	$	0		0	$	0
Greg. D. Haendel		0	$	0		0	$	0		0	$	0
Derek S. Brown		0	$	0		0	$	0		0	$	0
Geoffrey I. Edelstein		0	$	0		0	$	0		0	$	0
Edward S. Han		0	$	0		0	$	0		0	$	0
John J. Huber		0	$	0		0	$	0		0	$	0
Peter O. Lopez		0	$	0		0	$	0		0	$	0
Erik U. Rollé		0	$	0		0	$	0		0	$	0
Brian W. Westhoff		0	$	0		0	$	0		0	$	0

Ownership of Securities

As of December 31, 2008, none of the portfolio managers beneficially owned shares of the Fund.

Transamerica Premier High Yield Bond Fund

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
							Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Assets Managed
Brian W. Westhoff		7	$	416,127,852		0	$	0		2	$	32,030,243
Kirk J. Kim		8	$	569,984,623		0	$	0		4	$	281,359,321
Peter O. Lopez		3	$	217,407,608		1	$	9,656,024		1	$	26,529,462
Derek S. Brown		3	$	912,985,961		0	$	0		15	$	1,563,937,895
Greg D. Haendel		10	$	2,234,811,522		1	$	304,147,164		11	$	358,948,208
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Brian W. Westhoff		0	$	0		0	$	0		0	$	0
Kirk J. Kim		0	$	0		0	$	0		0	$	0
Peter O. Lopez		0	$	0		0	$	0		0	$	0
Derek S. Brown		0	$	0		0	$	0		0	$	0
Greg D. Haendel		0	$	0		0	$	0		0	$	0

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Ownership of Securities

As of December 31, 2008, none of the portfolio managers beneficially owned shares of the Fund.

Transamerica Premier Cash Reserve Fund

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
							Assets				Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Managed
Greg D. Haendel		10	$	2,234,811,522		1	$	304,147,164		11	$	358,948,208
Patty Arrieta-Morales		3	$	1,472,871,927		1	$	304,147,164		0	$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Greg D. Haendel		0	$	0		0	$	0		0	$	0
Patty Arrieta-Morales		0	$	0		0	$	0		0	$	0

Ownership of Securities

As of December 31, 2008, Mr. Haendel did not beneficially own shares of the Fund. Ms. Arrieta-Morales beneficially owned $1 — $10,000 in the Fund.

Transamerica Premier High Yield Bond Fund

	Registered Investment				Other Pooled Investment
	Companies				Vehicles				Other Accounts
							Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Assets Managed
Brian W. Westhoff		7	$	416,127,852		0	$	0		2	$	32,030,243
Kirk J. Kim		8	$	569,984,623		0	$	0		4	$	281,359,321
Peter O. Lopez		3	$	217,407,608		1	$	9,656,024		1	$	26,529,462
Derek S. Brown		3	$	912,985,961		0	$	0		15	$	1,563,937,895
Greg D. Haendel		10	$	2,234,811,522		1	$	304,147,164		11	$	358,948,208
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Brian W. Westhoff		0	$	0		0	$	0		0	$	0
Kirk J. Kim		0	$	0		0	$	0		0	$	0
Peter O. Lopez		0	$	0		0	$	0		0	$	0
Derek S. Brown		0	$	0		0	$	0		0	$	0
Greg D. Haendel		0	$	0		0	$	0		0	$	0

Ownership of Securities

As of December 31, 2008, none of the portfolio managers beneficially owned shares of the Fund.

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Transamerica Premier Institutional Small Cap Value Fund

							Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Assets Managed
Jeffrey J. Hoo		7	$	415,854,859		0	$	0		0	$	0
Joshua D. Shaskan		10	$	858,046,908		0	$	0		44	$	369,368,629
Thomas E. Larkin, III		0	$	0		0	$	0		0	$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Jeffrey J. Hoo		0	$	0		0	$	0		0	$	0
Joshua D. Shaskan		0	$	0		0	$	0		0	$	0
Thomas E. Larkin, III		0	$	0		0	$	0		0	$	0

Ownership of Securities

As of December 31, 2008, none of the portfolio managers beneficially owned shares of the Fund.

Transamerica Premier Institutional Diversified Equity Fund

							Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Assets Managed
Gary U. Rollé		12	$	3,457,180,425		2	$	151,847,771		69	$	1,200,245,339
Geoffrey L. Edelstein		3	$	1,595,289,052		2	$	53,905,465		85	$	67,199,600
Kirk R. Feldhus		2	$	313,460,452		1	$	8,480,605		0	$	0
Thomas E. Larkin		0	$	0		0	$	0		0	$	0
John D. Lawrence		0	$	0		1	$	20,319,681		1	$	20,782,635
Peter O. Lopez		3	$	217,407,608		1	$	9,656,024		1	$	26,529,462
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Gary U. Rollé		0	$	0		0	$	0		0	$	0
Geoffrey L. Edelstein		0	$	0		0	$	0		0	$	0
Kirk R. Feldhus		0	$	0		0	$	0		0	$	0
Thomas E. Larkin		0	$	0		0	$	0		0	$	0
John D. Lawrence		0	$	0		0	$	0		0	$	0
Peter O. Lopez		0	$	0		0	$	0		0	$	0

Ownership of Securities

As of December 31, 2008, none of the portfolio managers beneficially owned shares of the Fund.

C-12

Transamerica Premier Institutional Bond Fund

							Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Assets Managed
Greg D. Haendel		10	$	2,234,811,522		1	$	304,147,164		11	$	358,948,208
Derek S. Brown		3	$	912,985,961		0	$	0		15	$	1,563,937,895
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Greg. D. Haendel		0	$	0		0	$	0		0	$	0
Derek S. Brown		0	$	0		0	$	0		0	$	0

Ownership of Securities

As of December 31, 2008, none of the portfolio managers beneficially owned shares of the Fund.

Transamerica Premier Institutional Equity Fund

							Assets
Portfolio Managers	Number		Assets Managed		Number		Managed		Number		Assets Managed
Gary U. Rollé		12	$	3,457,180,425		2	$	151,847,771		69	$	1,200,245,339
Geoffrey I. Edelstein		3	$	1,595,289,052		2	$	53,905,465		85	$	67,199,600
Edward S. Han		7	$	415,854,859		0	$	0		0	$	0
John J. Huber		3	$	704,342,888		1	$	47,931,056		1	$	78,423,676
Peter O. Lopez		3	$	217,407,608		1	$	9,656,024		1	$	26,529,462
Erik U. Rollé		3	$	738,416,523		1	$	9,247,763		0	$	0
Fee Based Accounts (The number of accounts and the total assets in the accounts managed by each portfolio manager with respect to which the advisory fee is based on the performance of the account.)
Gary U. Rollé		0	$	0		0	$	0		0	$	0
Geoffrey I. Edelstein		0	$	0		0	$	0		0	$	0
Edward S. Han		0	$	0		0	$	0		0	$	0
John J. Huber		0	$	0		0	$	0		0	$	0
Peter O. Lopez		0	$	0		0	$	0		0	$	0
Erik U. Rollé		0	$	0		0	$	0		0	$	0

Ownership of Securities

As of December 31, 2008, none of the portfolio managers beneficially owned shares of the Fund, except for Mr. Edelstein, who owned $500,000 — $1,000,000 in the Fund.

Conflict of Interest

At TIM, individual portfolio managers may manage multiple accounts for multiple clients. In addition to the sub-advisory management of the Funds, TIM manages separate accounts for institutions and individuals. TIM manages potential conflicts between accounts through its allocation policies and procedures, internal review processes and oversight by senior management and its board of directors. TIM has developed trade allocation policies to address potential conflicts in situations where two or more accounts participate in investment decisions involving the same securities using procedures that it considers to be fair and equitable.

Compensation

Portfolio managers, including the members of the executive team, are remunerated with a combination of base salary, performance-based bonus, and profit sharing or ownership interest. The overall compensation structure is reviewed annually for market competitiveness with an objective of offering compensation structures above the median as compared to our industry peers. For

C-13

purposes of determining the level of performance-based compensation, potential track records (pre-tax) are based on full years of portfolio management for TIM. There are two weighted components taken into consideration for determining maximum incentive compensation amounts. These total 100% and consist of an objective and subjective component as further described below:

• 80% Objective-portfolio performance-based calculation; based upon relative rankings of track record and return formula criteria. A portion of the objective component is necessarily subjective taking into account such items as co/multi-management responsibilities; portfolio performance upon assignment; length of time managing portfolio; customized client benchmarks; etc., in determining the portfolio manager’s relative ranking. TIM’s senior management and its board of directors determine the criteria to be used for evaluating how the rankings are determined for each portfolio manager under this objective component.

• 20% Subjective-based upon additional contributions to the firm as a whole and consistent with responsibilities identified on position descriptions—for example, general research contribution, behavioral competencies (e.g. team contributions; decision making capabilities; work ethic), quality of investment ideas, managerial duties outside of core responsibility, as determined by the executive team.

Key investment personnel have ownership interests in TIM and are evaluated on an annual basis to determine additional allocations of ownership interest. Such interests entitle the owner to quarterly distribution of profits as well as certain liquidity features. The interests effectively vest over a determined time period so as to provide a retention incentive. This ownership feature is intended to create both stability and an entrepreneurial atmosphere at TIM.

C-14

EX-99.17.G

Annual Report
December 31, 2008

www.transamericafunds.com

Customer Service 1-800-89-ASK-US (1-800-892-7587)
P.O. Box 219427 • Kansas City, MO 64121-9427
Distributor: Transamerica Capital, Inc.

Dear Fellow Shareholder,

On behalf of Transamerica Premier 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 advisor 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 recognize and understand current market conditions in order to provide a context for reading this report. Both equity and fixed-income markets have experienced extreme volatility and accelerating downward pricing pressure over the past twelve months as a credit crisis has had profound effects on the financial markets and has spilled over into the global economy. Oil prices rose dramatically throughout the first seven months of 2008 and have fallen precipitously since then as the global economy has struggled and demand has declined. The Federal Reserve has lowered the federal funds rate during the past twelve months from 4.25% at the beginning of January 2008 to a range of 0% — 0.25% in December 2008 as it has sought to provide liquidity in a difficult market environment. The Treasury department has also been taking an active role in an effort to stabilize the markets, including the initiation of the Temporary Money Market Guarantee program and the Troubled Assets Relief Program (TARP). The job market continues to struggle, as non-farm payrolls have weakened and the unemployment rate rose to 7.2% by year’s end. In this environment, investors have flocked to money market instruments and Treasuries in a flight to quality. Many funds have struggled to produce positive returns. For the twelve months ended December 31, 2008, the Dow Jones Industrial Average returned (31.93%), the Standard & Poor’s 500 Index returned (37.00%), and the Barclays Capital Aggregate U.S. Bond Index (formerly known as the Lehman Brothers Aggregate Bond Index) returned 5.24%. Please keep in mind it is 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 advisor is a key resource to help you build a complete picture of your current and future financial needs. Financial advisors are familiar with the market’s history, including long-term returns and volatility of various asset classes. With your financial advisor, you can develop an investment program that incorporates factors such as your goals, your investment timeline, and your risk tolerance.

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

Sincerely,

John K. Carter	Christopher A. Staples
President & Chief Executive Officer	Vice President & Chief Investment Officer
Transamerica Premier Funds	Transamerica Premier Funds

The views expressed in this report reflect those of the portfolio managers only and may not necessarily represent the views of the Transamerica Premier 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 Premier Funds.

Transamerica Premier Diversified Equity Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Diversified Equity Fund, Investor Class returned (40.93)%. By comparison its benchmark, the Standard and Poor’s 500 Composite Stock Index, returned (37.00)%.

STRATEGY REVIEW

The portfolio’s underperformance was largely a result of weak returns posted by individual holdings in the information technology and consumer discretionary sectors. Also pressuring relative performance were the portfolio’s underweight positions in better-performing sectors like health care and consumer staples.

Within technology, strong demand for Apple, Inc.’s Macs, Nanos and iPhones was undermined by continued rumors of management change. In addition, some investors believe growth in demand for the iPod has reached a plateau. We maintained our position, convinced that Apple will stay on the cutting edge of personal technology devices and continue to gain market share.

Another significant detractor from relative performance was CME Group, Inc., an electronic derivatives exchange. Although CME is the leader in this segment, a slowdown in the company’s monthly trading volumes compared to rapid volume growth in 2007 caused the stock to sell off. We believe CME will continue to gain market share with development of several new exchange traded products and maintained our position.

On the upside, the portfolio’s relative results benefited from stock selection in the financials (e.g., Plum Creek Timber, Co., Inc.) and materials (e.g., Sigma-Aldrich Corp.) sectors. Plum Creek, a real estate investment trust (“REIT”), owns and manages timberlands in the U.S and benefited from its status as the largest private landholder in the U.S. The company plans to sell much of its higher-quality, higher-priced acreage for conservation, residential and recreational uses.

Although Sigma is technically a chemicals company, it serves the healthcare industry by providing chemical products and kits used in scientific, genomic, pharmaceutical and biotech research. We believe a stable business model, expanding margins and strong cash flow bode well for this company.

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Kirk R. Feldhus
Thomas E. Larkin, III
John D. Lawrence, CFA
Peter O. Lopez

Co-Portfolio Managers
Transamerica Investment Management, LLC

Transamerica Premier Funds Annual Report 2008

1

Average Annual Total Return for Periods Ended 12/31/2008

										From			Inception
	1 Year			5 Years			10 Years			Inception			Date
Investor Class		(40.93)	%		(1.18)	%		0.35	%		0.89	%		04/01/1998
S&P 500*		(37.00)	%		(2.19)	%		(1.38	)%		(0.17	)%		04/01/1998

NOTES
*	The Standard and Poor’s 500 Composite Stock (“S&P 500”) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of the Fund. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.

2

Transamerica Premier Equity Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Equity Fund, Investor Class returned (44.74)%. By comparison its primary and secondary benchmarks, the Russell 1000^® Growth Index and the Standard and Poor’s 500 Composite Stock Index, returned (38.44)% and (37.00)%, respectively.

STRATEGY REVIEW

The portfolio’s underperformance was largely a result of weak returns posted by individual holdings in the information technology and consumer discretionary sectors. Also pressuring relative performance were the portfolio’s underweight position in the consumer staples sector and an overweight position in the financials sector.

Within technology, strong demand for Apple, Inc.’s Macs, Nanos and iPhones was undermined by continued rumors of management change. In addition, some investors believe growth in demand for the iPod has reached a plateau. We maintained our position, convinced that Apple will stay on the cutting edge of personal technology devices and continue to gain market share. We were not as optimistic about Research In Motion, Ltd., one of the largest detractors from relative performance. This maker of the BlackBerry wireless platform has fallen behind in its technology for phones, prompting us to liquidate our position.

Another significant detractor from relative performance was CME Group, Inc., an electronic derivatives exchange. Although CME is the leader in this segment, a slowdown in the company’s monthly trading volumes compared to rapid volume growth in 2007 caused the stock to sell off. We believe CME will continue to gain market share with development of several new exchange traded products and maintained our position.

On the upside, the portfolio’s relative results benefited from an underweight position versus the index in the poorly performing energy sector and strong individual stock selection within the healthcare and materials sectors (e.g., Gilead Sciences, Inc. and Praxair, Inc.). A biotech company that develops therapeutic treatments for infectious, life-threatening diseases such as HIV, Gilead proved resilient to the economic downturn. Generally speaking, Gilead’s products are not price sensitive, patent dependent or threatened by competition. We believe we will see continued strength in the stock. Praxair is a worldwide producer and distributor of industrial gases. The inherent defensiveness of the industrial gases sector, as well as a backlog of new projects that has virtually locked in sales and earnings growth through 2010, provided stability for Praxair during the period.

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Edward S. Han
John J. Huber, CFA
Peter O. Lopez
Erik U. Rollé

Co-Portfolio Managers
Transamerica Investment Management, LLC

3

Average Annual Total Return for Periods Ended 12/31/2008

										From			Inception
	1 Year			5 Years			10 Years			Inception			Date
Investor Class		(44.74)	%		(1.78)	%		(1.56)	%		5.90	%		10/02/1995
Russell 1000 Growth *		(38.44)	%		(3.42)	%		(4.27)	%		3.14	%		10/02/1995
S&P 500*		(37.00)	%		(2.19)	%		(1.38)	%		5.15	%		10/02/1995

NOTES
*	The Russell 1000® Growth Index and Standard and Poor’s 500 Composite Stock (“S&P 500”) Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of the Fund. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.

4

Transamerica Premier Focus Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Focus Fund, Investor Class returned (41.19)%. By comparison its benchmark, the Standard and Poor’s 500 Composite Stock Index, returned (37.00)%.

STRATEGY REVIEW

The portfolio’s underperformance was largely a result of losses for individual holdings in the information technology and health care sectors (e.g., Apple, Inc. and Nvidia, Inc.). An underweight position in consumer staples also held back relative results.

Although sales for Apple, Inc.’s marquee products during the period remained strong, the effects were negated by speculation of a change in management. We believe Apple will continue to capture market share by launching new cutting-edge personal technology devices, and maintained our position in the stock.

Video graphics chipmaker NVIDIA Corp. also traded lower, pressured by declining profits, growing competition and a decline in video game sales. We eliminated the position in the portfolio.

One of the largest individual detractors was Nighthawk Radiology Holdings, a provider of off-hours emergent radiologic interpretations to doctors’ offices and hospitals. The stock declined when the company lost several key contracts to competitors and experienced a change in management. We believe Nighthawk is positioned to benefit from growing demand for telemedicine (the transfer of medical information via telephone, the Internet or other networks for consulting purposes) and maintained our position.

Meanwhile, strong returns delivered by select holdings in the consumer discretionary and industrials sectors (e.g., Strayer Education, Inc., and CH Robinson Worldwide, Inc.) bolstered the portfolio’s relative performance. Also aiding relative results was a relatively high cash position (i.e., 12% average for the year). Strayer is a provider of undergraduate and graduate degree programs in traditional classroom settings, and over the Internet. Despite initial worries about limited access to student loans, investors gained confidence in Strayer upon learning that the majority of its funding comes from government-backed loans. The stock also benefited from strong enrollment growth and a tuition increase. CH Robinson, a freight logistics company, advanced as demand for its transportation services prevailed over shrinking margins resulting from higher fuel costs. In addition, the company continued to take market share from competitors.

Edward S. Han
Kirk J. Kim
Joshua D. Shaskan, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

5

Average Annual Total Return for Periods Ended 12/31/2008

										From			Inception
	1 Year			5 Years			10 Years			Inception			Date
Investor Class		(41.19)	%		0.06	%		(0.41)	%		6.89	%		7/1/1997
S&P 500*		(37.00)	%		(2.19	)%		(1.38)	%		1.87	%		7/1/1997

NOTES
*	The Standard and Poor’s 500 Composite Stock (“S&P 500”) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of the Fund. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.

6

Transamerica Premier Growth Opportunities Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Growth Opportunities Fund, Investor Class returned (40.85)%. By comparison its primary and secondary benchmarks, the Russell 2500^® Growth Index and the Russell Midcap^® Growth Index, returned (41.50)% and (44.32)%, respectively.

STRATEGY REVIEW

A modest cash position bolstered the portfolio’s relative results, as did an underweight position in the energy sector. Select holdings in the industrials and financials sectors (e.g., CH Robinson Worldwide, Inc. and Signature Bank) also contributed to outperformance.

CH Robinson advanced during the period as demand for its transportation services overcame shrinking margins resulting from higher fuel costs. In addition, the company continued to take market share from competitors. Signature Bank, a full-service commercial bank, took market share and accelerated growth by hiring employees away from two competitors as they merged.

Making the largest individual positive contribution to relative performance was Strayer Education, Inc., a provider of undergraduate and graduate degree programs in traditional classroom settings, as well as over the Internet. Despite initial worries about limited access to student loans, investors gained confidence in Strayer upon learning that the majority of its funding comes from government-backed loans. The stock also benefited from strong enrollment growth and a tuition increase.

An underweight position in the consumer staples sector and weak stock selection within the health care and information technology sectors (e.g., Intuitive Surgical, Inc. and Sirf Technology Holdings, Inc.) detracted from performance. Intuitive develops surgical tools and devices that enable a surgeon’s movements to be more precise. Despite strong financial results and the continued adoption of robotic surgery, investors sold the stock indiscriminately when other high-quality, high-multiple stocks declined. We maintained our position in the stock based on our thesis that the company’s devices enable doctors to be more productive and we believe that demand for its products will therefore remain strong throughout the economic crisis. We liquidated our position in Sirf, a maker of global positioning systems (“GPS”) and chips, midway through the year. Demand for its more-precise technology failed to meet our expectations.

Edward S. Han
John J. Huber, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

7

Average Annual Total Return for Periods Ended 12/31/2008

										From			Inception
	1 Year			5 Years			10 Years			Inception			Date
Investor Class		(40.85)	%		0.13	%		2.08	%		9.25	%		07/01/1997
Russell 2500 Growth *		(41.50)	%		(2.24	)%		0.75	%		1.54	%		07/01/1997
Russell Midcap Growth *		(44.32)	%		(2.33	)%		(0.19	)%		2.19	%		07/01/1997

NOTES
*	The Russell 2500® Growth Index and Russell Midcap® Growth Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of the Fund. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.

8

Transamerica Premier Balanced Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008, was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector and a near-freeze in the funding market prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

The poor credit market and economic environment spawned a flight from higher-risk assets such as stocks and corporate bonds to the relative safety of U.S. government-backed securities. Increasing demand for Treasuries drove prices higher and, because they move in opposition, yields lower. As the risk aversion escalated, the difference between Treasury and non-government yields, in some cases, reached record levels.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Balanced Fund, Investor Class returned (33.27)%. By comparison its primary and secondary benchmarks, Standard and Poor’s 500 Composite Stock Index (“S&P 500”) and Barclays Capital (formerly Lehman Brothers) U.S. Government/Credit Bond Index (“BCGC”), returned (37.00)% and 5.70%, respectively.

STRATEGY REVIEW

On the equity side, the portfolio’s underperformance was largely a result of weak returns posted by individual holdings in the information technology (e.g., Apple, Inc.) and consumer discretionary (e.g., Daimler AG) sectors as well as an underweight position in consumer staples, the sector that experienced the smallest decline.

Within technology, strong demand for Apple’s Macs, Nanos and iPhones was undermined by continued rumors of management change. In addition, some investors believe growth in demand for the iPod has reached a plateau. We maintained our position, convinced that Apple will stay on the cutting edge of personal technology devices and continue to gain market share. We also maintained our position in Tyco Electronics, Ltd., a maker of connectors for the auto, aerospace and telephony industries. We believe the company is growing at a healthy rate for a quasi-industrial company. Daimler suffered during the year due primarily to the downward trend in auto sales worldwide and the lack of financing available to consumers.

Helping to offset some of the underperformance was WW Grainger, Inc., a distributor of industrial maintenance and repair supplies. It benefited from a number of new improvement projects and expansion into new markets.

On the fixed-income side, a shorter-than-index duration as well as an overweighting of non-government sectors (i.e., investment-grade corporate securities and agency mortgage securities), which lagged the Treasury sector, was the primary source of underperformance. Among investment-grade corporate bonds, we had no exposure to the most distressed companies in the troubled financial services sector. On the mortgage side, our emphasis was on short-duration agency collateralized mortgage obligations, which were less volatile than other mortgage securities. As the credit crisis expanded to other parts of the market and world, we pared back our exposure to corporates.

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Edward S. Han
John J. Huber, CFA
Peter O. Lopez
Erik U. Rollé
Greg D. Haendel, CFA
Derek S. Brown, CFA
Brian W. Westhoff, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

9

Average Annual Total Return for Periods Ended 12/31/2008

										From			Inception
	1 Year			5 Years			10 Years			Inception			Date
Investor Class		(33.27	)%		(0.51	)%		2.69	%		7.76	%		10/02/1995
S&P 500*		(37.00	)%		(2.19	)%		(1.38	)%		5.15	%		10/02/1995
Barclays Capital U.S. Government/Credit Bond Index*		5.70	%		4.64	%		5.64	%		6.28	%		10/02/1995

NOTES
*	The Standard and Poor’s 500 Composite Stock Index (“S&P 500”) and Barclays Capital U.S. Government/Credit Bond Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of the Fund. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.

10

Transamerica Premier High Yield Bond Fund
(unaudited)

MARKET ENVIRONMENT

The sub-prime mortgage meltdown of 2007 continued to create problems in 2008, triggering unprecedented volatility in the financial markets and escalating to a full-blown credit crisis. As the situation deteriorated, several major financial institutions were either forced into bankruptcy or into the arms of more stable competitors.

In the second half of the year, it became apparent that the credit crisis had spread to banking systems in Europe and Asia, and fears of a global recession escalated. Governments around the world responded by implementing a number of fiscal and monetary programs. For example, both the U.K. and China announced multi-billion dollar stimulus packages in an attempt to revive their economies. In the U.S., these stimulative measures included a $700 billion financial rescue package, an unprecedented reduction in short-term interest rates, and commercial paper and bank debt guarantee programs, among others. During the final months of the year, however, unemployment continued to rise, credit availability for both consumers and businesses declined, consumer spending decelerated, and manufacturing slowed, suggesting more time and more stimulus may be necessary.

The poor market environment spawned a flight from higher-risk assets such as stocks and corporate bonds to the relative safety of U.S. government-backed securities. Within the fixed-income markets, high-yield bonds bore the brunt of this negative sentiment, as bank failures and illiquid credit markets led to greater refinancing risk. These developments caused the difference between Treasury and non-government yields (i.e., yield spreads) to reach record levels. In the final weeks of the year, sentiment around high-yield bonds improved when the federal government approved bank holding status for GMAC, the financing arm of General Motors, allowing the company to receive funding through the government’s $700 billion bank rescue package. Because the auto sector represents a large segment of the high-yield market, the GMAC news was modestly reassuring, but ultimately not significant enough to turn the tide.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier High Yield Bond Fund, Investor Class returned (25.19)%. By comparison it’s primary and secondary benchmarks, the Merrill Lynch U.S. High Yield, Cash Pay, BB-B Rated Index (“ML High Yield BB-B”) and the Merrill Lynch U.S. High-Yield, Cash Pay Index (“MLHYCP”), returned (23.63)% and (26.21)%, respectively.

STRATEGY REVIEW

Because of the growing aversion to risk, high-yield bonds particularly vulnerable to default suffered the sharpest declines in value during the period. We consequently reduced the portfolio’s allocation to lower-rated (i.e., CCC-rated) bonds and increased our exposure to BB-rated securities that we felt possessed greater cash flow and liquidity. While our investment approach is to focus on individual companies rather than ratings, the characteristics we look for in an issuer generally tend to steer us into B-rated bonds.

In terms of individual holdings, the two largest contributors to the portfolio’s relative performance were Merrill Lynch & Co., Inc. and PNA Group, Inc. Specifically, we purchased Merrill Lynch bonds that can be put (i.e., may be redeemed before maturity and receive full face value) 30 days after the closing of the Bank of America Corp. merger. Our holdings in steel distributor PNA Group benefited when the company was purchased by Reliance Steel & Aluminum Co. and the bonds were tendered.

The two most significant detractors from relative results were Seitel, Inc. and Algoma Steel. Seitel is a provider of seismic data and related geophysical expertise to the petroleum industry. As natural gas prices fell during the year, the company’s prospects for additional seismic data sales began to wane. Going forward, we believe an increased focus in the U.S. on oil shale fields and high decline rates of natural gas production will cause gas prices to stabilize and eventually recover, benefiting Seitel. Algoma Steel is a fully integrated steel producer. As the economic outlook dimmed in the second half of the year, steel prices tumbled. With an increased focus on infrastructure in North America, we are confident that the outlook for steel will improve.

To a lesser degree, the portfolio’s relative performance was hindered by our lack of exposure to the automakers, which as mentioned above, saw their bonds increase in value toward the end of the period. These issuers account for roughly 5% of our benchmark index.

Brian W. Westhoff, CFA
Kirk J. Kim
Peter O. Lopez
Derek S. Brown, CFA
Greg D. Haendel, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

11

Average Annual Total Return for Periods Ended 12/31/2008

										From			Inception
	1 Year			5 Years			10 Years			Inception			Date
Investor Class		(25.19)	%		(1.40)	%		1.53	%		1.51	%		07/01/1998
Merrill Lynch U.S. High Yield, Cash Pay, BB-B Rated*		(23.63)	%		(0.28)	%		2.47	%		2.35	%		07/01/1998
Merrill Lynch U.S. High Yield, Cash Pay*		(26.21)	%		(0.84)	%		2.27	%		2.08	%		07/01/1998
Institutional Class		(25.13)	%		(1.17)	%		1.74	%		1.70	%		07/01/1998

NOTES
*	The Merrill Lynch U.S. High Yield, Cash Pay, BB-B Rated Index and the Merrill Lynch U.S. High Yield, Cash Pay Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of the Fund. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.

12

Transamerica Premier Institutional Bond Fund
(unaudited)

MARKET ENVIRONMENT

The sub-prime mortgage meltdown of 2007 continued to create problems in 2008, triggering unprecedented volatility in the financial markets and escalating to a full-blown credit crisis. As the situation deteriorated, several major financial institutions were either forced into bankruptcy or into the arms of more stable competitors.

In the second half of the year, it became apparent that the credit crisis had spread to banking systems in Europe and Asia, and fears of a global recession escalated. Governments around the world responded by implementing a number of fiscal and monetary programs. For example, both the U.K. and China announced multi-billion dollar stimulus packages in an attempt to revive their economies. In the U.S., these stimulative measures included a $700 billion financial rescue package, an unprecedented reduction in short-term interest rates, and commercial paper and bank debt guarantee programs, among others. During the final months of the year, however, unemployment continued to rise, credit availability for both consumers and businesses declined, consumer spending decelerated, and manufacturing slowed, suggesting more time and more stimulus may be necessary.

The poor market environment spawned a flight from higher-risk assets such as stocks and corporate bonds to the relative safety of U.S. government-backed securities. Increasing demand for Treasuries drove prices higher and, because they move in opposition, yields lower. For most corporate bonds, the opposite occurred; as demand decreased due to credit concerns, prices dropped. In some cases, the difference between Treasury and non-government yields (i.e., yield spreads) reached record levels.

Within the mortgage sector, yield spreads on mortgage-backed securities issued by government agencies (e.g., Fannie Mae) widened slightly; however, the implicit government guarantee of these bonds, along with the government’s effort to manipulate mortgage rates, generally enabled the bonds to outperform most other non-Treasury asset classes. For corporate bonds, the lowest-quality bonds saw the greatest increase in yield spreads.

As the year came to an end, the unprecedented amount of fiscal and monetary stimulus began to work. Financials markets, specifically the credit markets, starting showing signs of stabilization and even a slight recovery. Although the economy remains in a recession, these early signs are encouraging.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Institutional Bond Fund, Institutional Class returned 0.56%. By comparison its benchmark, Barclays Capital (formerly Lehman Brothers) Aggregate U.S. Bond Index, returned 5.24%.

STRATEGY REVIEW

The portfolio’s underperformance is a result of a shorter-than-index duration as well as modest overweightings in the corporate and high-yield bond sectors. However, as the credit crisis worsened, we pared back our exposure to both sectors early in the year. Meanwhile, we increased the portfolio’s weighting to government agency mortgage-backed securities after the government takeover of mortgage finance giants Fannie Mae and Freddie Mac. Agency mortgages performed well thereafter and hence added to the portfolio’s performance.

In terms of industry exposure, the portfolio was underweight homebuilders, autos, paper and forest products, healthcare, consumer cyclicals, brokers, and monoline financial companies. We had a small overweighting to large money-center banks due to our expectation that they would gain market share over their failing competitors and due to the large amount of government support provided by the government. We avoided exposure to the large thrifts and brokerages that imploded during the period. A negative outlook for consumer spending convinced us to reduce the portfolio’s allocation to consumer cyclicals. Industrials, capital goods, and consumer staples were some of the sectors in which the portfolio was overweight, as we believe products and goods in these sectors will benefit from the pending infrastructure build-out in the U.S. and continued demand for basic consumer staples.

Derek S. Brown, CFA
Greg D. Haendel, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

13

Average Annual Total Return for Periods Ended 12/31/2008

				From			Inception
	1 Year			Inception			Date
Institutional Class		0.56	%		2.71	%		02/01/2005
Barclays Capital Aggregate U.S. Bond Index*		5.24	%		4.67	%		02/01/2005

NOTES
*	The Barclays Capital Aggregate U.S. Bond Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of the Fund. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.

14

Transamerica Premier Institutional Equity Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Institutional Equity Fund, Institutional Class returned (43.92)%. By comparison its primary and secondary benchmarks, the Russell 1000^® Growth Index and the Standard and Poor’s 500 Composite Stock Index, returned (38.44)% and (37.00)%, respectively.

STRATEGY REVIEW

The portfolio’s underperformance was largely a result of weak returns posted by individual holdings in the information technology and consumer discretionary sectors. Also pressuring relative performance were the portfolio’s underweight position in the consumer staples sector and an overweight position in the financials sector.

Within technology, strong demand for Apple, Inc.’s Macs, Nanos and iPhones was undermined by continued rumors of management change. In addition, some investors believe growth in demand for the iPod has reached a plateau. We maintained our position, convinced that Apple will stay on the cutting edge of personal technology devices and we believe will continue to gain market share. We were not as optimistic about Research in Motion, Ltd., one of the largest detractors from relative performance. This maker of the BlackBerry wireless platform has fallen behind in its technology for phones, prompting us to liquidate our position.

Another significant detractor from relative performance was CME Group, Inc., an electronic derivatives exchange. Although CME is the leader in this segment, a slowdown in the company’s monthly trading volumes compared to rapid volume growth in 2007 caused the stock to sell off. We believe CME will continue to gain market share with development of several new exchange traded products and maintained our position.

On the upside, the portfolio’s relative results benefited from an underweight position versus the index in the poorly performing energy sector and strong individual stock selection within the healthcare and materials sectors (e.g., Gilead Sciences, Inc. and Praxair, Inc.). A biotech company that develops therapeutic treatments for infectious, life-threatening diseases such as HIV, Gilead proved resilient to the economic downturn. Generally speaking, Gilead’s products are not price sensitive, patent dependent or threatened by competition. We believe we will see continued strength in the stock. Praxair is a worldwide producer and distributor of industrial gases. The inherent defensiveness of the industrial gases sector, as well as a backlog of new projects that has virtually locked in sales and earnings growth through 2010, provided stability for Praxair during the period.

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Edward S. Han
John J. Huber, CFA
Peter O. Lopez
Erik U. Rollé

Co-Portfolio Managers
Transamerica Investment Management, LLC

15

Average Annual Total Return for Periods Ended 12/31/2008

				From			Inception
	1 Year			Inception			Date
Institutional Class		(43.92)	%		(2.02)	%		06/01/2004
Russell 1000 Growth *		(38.44)	%		(4.03)	%		06/01/2004
S&P 500*		(37.00)	%		(2.69)	%		06/01/2004

NOTES
*	The Russell 1000® Growth Index and Standard and Poor’s 500 Composite Stock (“S&P 500”) Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of the Fund. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.

16

Transamerica Premier Institutional Small Cap Value Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008, was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses. Small cap stocks fell notably less than their large-cap counterparts during the year, with the Russell 2000^® Index down 33.79% and the S&P SmallCap 600 Index down 31.99%. By contrast, the Russell 1000^® Index and the Standard and Poor’s 500 Composite Stock Index (“S&P 500”), two large-stock measures, declined 37.60% and 37.00%, respectively.

The credit problems in the financial sector and a near-freeze in the funding market prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented target range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Institutional Small Cap Value Fund, Institutional Class returned (37.01)%. By comparison its primary and secondary benchmarks, the Russell 2000^® Value Index and the Russell 2500^® Value Index, returned (28.92)% and (31.99)%, respectively.

STRATEGY REVIEW

The portfolio’s underperformance was largely a result of losses suffered by individual holdings in the energy (e.g., Global Industries, Ltd.) and industrials (e.g., Aegean Marine Petroleum Network, Inc.) sectors.

Global Industries is an oil services provider catering to the offshore oil and gas industry. Performance was hurt by excessive costs incurred from downtime due to bad weather, issues surrounding port clearance, and delays in obtaining support vessels and equipment from its customers. We opted to liquidate our position in favor of other, more attractive investment ideas. We also sold Aegean, the portfolio’s single largest relative detractor. Aegean is a logistics company that provides fueling services to ocean-going and coastal vessels. Collapsing demand for the transportation of iron, steel and other commodities transported by ship weighed heavily on the stock.

Helping to limit the portfolio’s underperformance were the strong returns delivered by select holdings in the materials (i.e., Zep, Inc.) and financials (e.g., Ezcorp, Inc.) sectors. Zep is a manufacturer of cleaning and maintenance solutions for commercial, industrial, institutional and consumer end-markets. The company’s clients — hotels, hospitals and other large institutions — view Zep products as a more efficient and cost-effective way to clean their facilities. In the current economic environment, corporations need to keep costs down, convincing us demand for Zep’s products will remain solid.

Through its network of pawnshops, Ezcorp provides credit to individuals unable to get it through traditional banks. As economic conditions deteriorated and more jobs were lost, many consumers were forced to seek alternative personal financing solutions. This trend pushed Ezcorp higher during the period.

Jeffrey J. Hoo, CFA
Joshua D. Shaskan, CFA
John D. Lawrence, CFA
Scott L. Dinsdale, CFA

Co-Portfolio Managers
Transamerica Investment Management, LLC

17

Average Annual Total Return for Periods Ended 12/31/2008

				Since			Inception
	1 Year			Inception			Date
Institutional Class		(37.01)	%		2.98	%		02/01/2005
Russell 2000 Value *		(28.92)	%		(3.71	)%		02/01/2005
Russell 2500 Value *		(31.99)	%		(4.25	)%		02/01/2005

NOTES
*	The Russell 2000® Value Index and Russell 2500® Value Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of the Fund. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.

18

Transamerica Premier Institutional Diversified Equity Fund
(unaudited)

MARKET ENVIRONMENT

The year ended December 31, 2008 was exceptionally challenging for investors. As problems in the credit markets spread to other segments of the economy, unemployment rose to 7.2%, home prices fell for the third consecutive year, consumer confidence declined, and U.S. gross domestic product (“GDP”) shrank. The financial markets responded to these events with substantial losses.

The credit problems in the financial sector prompted the U.S. government to intervene early in the year with a $160 billion economic stimulus package intended to stave off an economic collapse. However, in the second quarter it became evident that the credit crisis had not only spread beyond the financial sector but also beyond U.S. borders. Subsequent attempts to stabilize the U.S. monetary system and economy with capital injections came from the Federal Reserve Board (“Fed”) and the federal government. Further, throughout the course of the year, the Fed lowered short-term interest rates from 4.25% to an unprecedented range of 0-0.25%. China and Europe also cut interest rates in an effort to stimulate growth.

As the year came to a close, falling energy prices and the historic election of the 44th U.S. President gave the markets a much-needed confidence boost. Investor confidence plummeted once again, however, when the Big Three automakers announced they were unable to continue funding operations without government assistance, sending ripples throughout the markets, especially among industrial suppliers to the automakers.

PERFORMANCE

For the year ended December 31, 2008, Transamerica Premier Institutional Diversified Equity Fund, Institutional Class returned (40.98)%. By comparison its benchmark, the Standard and Poor’s 500 Composite Stock Index, returned (37.00)%.

STRATEGY REVIEW

The portfolio’s underperformance was largely a result of weak returns posted by individual holdings in the information technology (e.g., Apple, Inc. and Tyco Electronics, Ltd.) and consumer discretionary (e.g. BorgWarner, Inc.) sectors. Also pressuring relative performance were the portfolio’s underweight positions in better-performing sectors like health care and consumer staples. Apple was undermined by continued rumors of management change. In addition, some investors believe growth in demand for the iPod has reached a plateau. We maintained our position, convinced that Apple will stay on the cutting edge of personal technology devices and we believe will continue to gain market share. Tyco, a maker of connectors for the auto, aerospace and telephony industries, has seen its stock price decline primarily due to its association with the auto industry. We believe that the company is growing at a healthy rate for a quasi-industrial company and have maintained our position.

On the upside, the portfolio’s relative results benefited from stock selection in the financials (e.g., Plum Creek Timber, Co., Inc.) and materials (e.g., Sigma-Aldrich Corp.) sectors. Plum Creek, a real estate investment trust (“REIT”), owns and manages timberlands in the U.S and benefited from its status as the largest private landholder in the U.S. The company plans to sell much of its higher-quality, higher-priced acreage for conservation, residential and recreational uses. Another positive for the stock: President-elect Obama introduced the largest public works spending program since the interstate highway system.

Although Sigma is technically a chemicals company, it serves the healthcare industry by providing chemical products and kits used in scientific, genomic, pharmaceutical and biotech research. We believe a stable business model, expanding margins and strong cash flow bode well for this company.

Gary U. Rollé, CFA
Geoffrey I. Edelstein, CFA, CIC
Kirk R. Fedlhus
Thomas E. Larkin, III
John D. Lawrence, CFA
Peter O. Lopez

Co-Portfolio Managers
Transamerica Investment Management, LLC

19

Average Annual Total Return for Periods Ended 12/31/2008

				From			Inception
	1 Year			Inception			Date
Institutional Class		(40.98)	%		(3.47)	%		02/01/2005
S&P 500*		(37.00)	%		(4.72)	%		02/01/2005

NOTES
*	The Standard and Poor’s 500 Composite Stock (“S&P 500”) Index is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. From inception calculation is based on life of the Fund. You cannot directly invest in an index.

The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains.

This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.

20

Understanding Your Funds’ Expenses
(unaudited)

SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including redemption fees; and (2) ongoing costs including management fees, 12b-1 distribution and service fees, and other fund expenses. The following Examples are intended to help you understand your ongoing costs (in dollars and cents) of investing in the Funds’ 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, 2008 and held for the entire period until December 31, 2008.

ACTUAL EXPENSES

The second and third columns in the table 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 = 8.6), then multiply the result by the number in the third column of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The fourth and fifth column in the table provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the fifth column under the Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

							Ending Account		Expenses Paid
	Beginning		Ending Account		Expenses Paid		Value		During Period		Annualized
Fund Name	Account Value		Value		During Period (a)		(Hypothetical) (b)		(Hypothetical) (b)		Expense Ratio (b)
Transamerica Premier Diversified Equity Fund Investor Class	$	1,000.00	$	687.70	$	4.88	$	1,019.36	$	5.84		1.15	%
Transamerica Premier Equity Fund Investor Class		1,000.00		648.95		4.77		1,019.36		5.84		1.15
Transamerica Premier Focus Fund Investor Class		1,000.00		694.81		5.96		1,018.10		7.10		1.40
Transamerica Premier Growth Opportunities Fund Investor Class		1,000.00		684.98		5.93		1,018.10		7.10		1.40
Transamerica Premier Balanced Fund Investor Class		1,000.00		747.69		4.83		1,019.61		5.58		1.10
Transamerica Premier High Yield Bond Fund Institutional Class		1,000.00		765.03		2.88		1,021.87		3.30		0.65
Investor Class		1,000.00		765.12		3.99		1,020.61		4.57		0.90
Transamerica Premier Cash Reserve Fund Investor Class		1,000.00		1,010.66		1.26		1,023.88		1.27		0.25
Transamerica Premier Institutional Bond Fund Institutional Class		1,000.00		1,002.73		2.27		1,022.87		2.29		0.45
Transamerica Premier Institutional Equity Fund Institutional Class		1,000.00		655.33		3.12		1,021.37		3.81		0.75
Transamerica Premier Institutional Small Cap Value Fund Institutional Class		1,000.00		604.30		3.43		1,020.86		4.32		0.85
Transamerica Premier Institutional Diversified Equity Fund Institutional Class		1,000.00		684.67		3.18		1,021.37		3.81		0.75

(a)	Expenses are calculated using the Fund’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 (184 days), and divided by the number of days in the year (366 days).
(b)	5% return per year before expenses.

21

Graphical Presentation of the Schedules of Investments
At December 31, 2008
(percentage breakdown of the Funds’ total investment securities)
(unaudited)

Transamerica Premier Diversified Equity Fund
by Sector

Transamerica Premier Focus Fund
by Sector

Transamerica Premier Equity Fund
by Sector

Transamerica Premier Growth Opportunities Fund by
Sector

The percentage breakdown of the Short-term category includes Securities Lending Collateral.

22

Transamerica Premier Balanced Fund
by Asset Type

Transamerica Premier Cash Reserve Fund
by Maturity Distribution (in days)

Transamerica Premier High Yield Bond Fund
by Bond Credit Quality (Moody Ratings)

Transamerica Premier Institutional Bond Fund
by Asset Type

The percentage breakdown of the Short-term category includes Securities Lending Collateral.

23

Transamerica Premier Institutional Equity Fund
by Sector

Transamerica Premier Institutional Diversified Equity Fund
by Sector

Transamerica Premier Institutional Small Cap Value Fund
by Sector

The percentage breakdown of the Short-term category includes Securities Lending Collateral.

24

Transamerica Premier Diversified Equity Fund

SCHEDULE OF INVESTMENTS
At December 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (97.0%)
Aerospace & Defense (7.0%)
Boeing Co.		44,000	$	1,877
Lockheed Martin Corp.		75,000		6,306
Precision Castparts Corp.		90,000		5,353
Air Freight & Logistics (2.6%)
CH Robinson Worldwide, Inc. ^		40,000		2,201
Expeditors International of Washington, Inc. ^		85,000		2,828
Auto Components (3.8%)
BorgWarner, Inc. ^		200,000		4,354
Johnson Controls, Inc.		170,000		3,087
Automobiles (0.9%)
Daimler AG ^		45,000		1,723
Beverages (1.1%)
PepsiCo, Inc.		40,000		2,191
Capital Markets (10.0%)
BlackRock, Inc. -Class A ^		47,000		6,305
Charles Schwab Corp.		350,000		5,660
Merrill Lynch & Co., Inc. ^		210,000		2,444
T. Rowe Price Group, Inc. ^		140,000		4,962
Chemicals (6.3%)
Ecolab, Inc.		130,000		4,570
Monsanto Co.		30,000		2,111
Sigma-Aldrich Corp. ^		135,000		5,702
Communications Equipment (1.7%)
Qualcomm, Inc.		90,000		3,225
Computers & Peripherals (6.3%)
Apple, Inc. ‡ ^		62,000		5,292
Hewlett-Packard Co.		195,000		7,077
Construction & Engineering (2.1%)
Jacobs Engineering Group, Inc. ‡ ^		85,000		4,088
Consumer Finance (0.7%)
American Express Co.		70,000		1,298
Diversified Financial Services (3.3%)
CME Group, Inc. -Class A		10,000		2,081
JPMorgan Chase & Co.		135,000		4,257
Diversified Telecommunication Services (4.4%)
Verizon Communications, Inc.		255,000		8,645
Electronic Equipment & Instruments (1.9%)
Tyco Electronics, Ltd.		230,000		3,728
Energy Equipment & Services (0.7%)
Schlumberger, Ltd.		30,000		1,270
Food & Staples Retailing (2.8%)
Costco Wholesale Corp. ^		105,000		5,512
Health Care Equipment & Supplies (3.6%)
Becton Dickinson & Co.		75,000		5,129
Covidien, Ltd.		55,000		1,993
Internet & Catalog Retail (2.8%)
Amazon.com, Inc. ‡ ^		105,000		5,384
Internet Software & Services (2.1%)
Google, Inc. -Class A ‡		13,000		3,999
Leisure Equipment & Products (1.1%)
Hasbro, Inc. ^		70,000		2,042
Machinery (7.9%)
Caterpillar, Inc. ^		70,000		3,127
Donaldson Co., Inc. ^		100,000		3,365
Kennametal, Inc.		270,000		5,991
PACCAR, Inc. ^		100,000		2,860
Media (3.4%)
Walt Disney Co.		290,000		6,580
Oil, Gas & Consumable Fuels (1.2%)
Anadarko Petroleum Corp.		60,000		2,313
Real Estate Investment Trusts (2.3%)
Plum Creek Timber Co., Inc. ^		130,000		4,516
Road & Rail (2.7%)
Burlington Northern Santa Fe Corp.		70,000		5,300
Semiconductors & Semiconductor Equipment (2.1%)
Intel Corp.		280,000		4,105
Software (6.3%)
Activision Blizzard, Inc. ‡ ^		160,000		1,382
Adobe Systems, Inc. ‡		200,000		4,258
Oracle Corp. ‡ ^		120,000		2,128
Salesforce.com, Inc. ‡ ^		140,000		4,481
Textiles, Apparel & Luxury Goods (3.1%)
Nike, Inc. -Class B ^		117,000		5,967
Trading Companies & Distributors (2.8%)
WW Grainger, Inc.		70,000		5,519
Total Common Stocks (cost $248,017)				188,586

	Principal
REPURCHASE AGREEMENT (2.7%)
State Street Repurchase Agreement 0.01%, dated 12/31/2008, to be repurchased at $5,236 on 01/02/2009 ◊ •	$	5,236	5,236
Total Repurchase Agreement (cost $5,236)			5,236

	Shares
SECURITIES LENDING COLLATERAL (14.1%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.14% ◊▲		27,496,605		27,497
Total Securities Lending Collateral (cost $27,497)				27,497
Total Investment Securities (cost $280,750)#			$	221,319

NOTES TO SCHEDULE OF INVESTMENTS:

^	All or a portion of this security is on loan. The value of all securities on loan is $26,863.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 5.75%, a maturity date of 10/01/2036, and with a market value plus accrued interest of $5,341.
▲	Interest rate shown reflects the yield at 12/31/2008.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
#	Aggregate cost for federal income tax purposes is $281,698. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $2,568 and $62,947, respectively. Net unrealized depreciation for tax purposes is $60,379.

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

25

Transamerica Premier Equity Fund

SCHEDULE OF INVESTMENTS
At December 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (99.5%)
Aerospace & Defense (6.8%)
Boeing Co.		215,000	$	9,174
Raytheon Co.		500,000		25,520
Air Freight & Logistics (3.3%)
Expeditors International of Washington, Inc. ^		500,000		16,635
Auto Components (5.1%)
BorgWarner, Inc.		450,000		9,796
Johnson Controls, Inc.		900,000		16,344
Automobiles (1.1%)
Daimler AG		140,000		5,359
Biotechnology (6.4%)
Gilead Sciences, Inc. ‡		630,000		32,218
Capital Markets (5.3%)
Charles Schwab Corp.		640,000		10,349
T. Rowe Price Group, Inc. ^		470,000		16,657
Chemicals (11.7%)
Ecolab, Inc.		220,000		7,733
Praxair, Inc.		540,000		32,054
Sigma-Aldrich Corp. ^		465,000		19,642
Commercial Banks (3.7%)
Wells Fargo & Co. ^		635,000		18,720
Communications Equipment (6.7%)
Cisco Systems, Inc. ‡		615,000		10,024
Qualcomm, Inc.		660,000		23,648
Computers & Peripherals (4.2%)
Apple, Inc. ‡		250,000		21,337
Construction & Engineering (3.8%)
Jacobs Engineering Group, Inc. ‡ ^		400,000		19,240
Consumer Finance (1.4%)
American Express Co.		385,000		7,142
Diversified Financial Services (1.8%)
CME Group, Inc. -Class A		45,000		9,365
Diversified Telecommunication Services (2.6%)
AT&T, Inc.		470,000		13,395
Electrical Equipment (1.5%)
Emerson Electric Co.		204,500		7,487
Electronic Equipment & Instruments (3.7%)
Tyco Electronics, Ltd.		1,145,000		18,560
Health Care Equipment & Supplies (6.2%)
Becton Dickinson & Co.		260,000		17,781
Varian Medical Systems, Inc. ‡		395,000		13,841
Industrial Conglomerates (3.2%)
General Electric Co.		1,000,000		16,200
Internet & Catalog Retail (4.6%)
Amazon.com, Inc. ‡ ^		450,000		23,076
Internet Software & Services (3.6%)
Google, Inc. -Class A ‡		60,000		18,459
Machinery (5.2%)
Caterpillar, Inc.		270,000		12,061
PACCAR, Inc.		505,000		14,443
Media (1.9%)
Walt Disney Co.		420,000		9,530
Pharmaceuticals (2.1%)
Allergan, Inc.		265,000		10,685
Road & Rail (3.6%)
Union Pacific Corp. ^		385,000		18,403
Total Common Stocks (cost $696,991)				504,878

	Principal
REPURCHASE AGREEMENT (1.2%)
State Street Repurchase Agreement 0.01%, dated 12/31/2008, to be repurchased at $6,348 on 01/02/2009 ◊ •	$	6,348	6,348
Total Repurchase Agreement (cost $6,348)			6,348

	Shares
SECURITIES LENDING COLLATERAL (9.4%)
State Street Navigator Securities Lending Trust — Prime Portfolio, 2.14% ◊▲		47,480,981		47,481
Total Securities Lending Collateral (cost $47,481)				47,481
Total Investment Securities (cost $750,820)#			$	558,707

NOTES TO SCHEDULE OF INVESTMENTS:

^	All or a portion of this security is on loan. The value of all securities on loan is $46,371.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 1.70%, a maturity date of 06/15/2034, and with a market value plus accrued interest of $6,475.
▲	Interest rate shown reflects the yield at 12/31/2008.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
#	Aggregate cost for federal income tax purposes is $762,219. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $321 and $203,833, respectively. Net unrealized depreciation for tax purposes is $203,512.

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

26

Transamerica Premier Focus Fund

SCHEDULE OF INVESTMENTS
At December 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (75.8%)
Air Freight & Logistics (3.7%)
CH Robinson Worldwide, Inc. ^		34,500	$	1,899
Beverages (0.9%)
Cia de Bebidas das Americas ADR ^		10,000		443
Biotechnology (4.3%)
Gilead Sciences, Inc. ‡ ^		43,200		2,209
Capital Markets (2.0%)
T. Rowe Price Group, Inc. ^		28,743		1,019
Chemicals (1.8%)
Praxair, Inc. ^		15,500		920
Commercial Banks (1.4%)
Wintrust Financial Corp. ^		35,800		736
Commercial Services & Supplies (2.3%)
Ritchie Bros. Auctioneers, Inc. ^		55,000		1,178
Communications Equipment (8.1%)
Polycom, Inc. ‡		33,400		451
Qualcomm, Inc.		102,250		3,664
Computers & Peripherals (4.4%)
Apple, Inc. ‡ ^		26,100		2,228
Diversified Consumer Services (7.4%)
Strayer Education, Inc. ^		17,600		3,774
Diversified Financial Services (4.1%)
CME Group, Inc. -Class A ^		6,040		1,257
JPMorgan Chase & Co.		25,250		796
Electronic Equipment & Instruments (2.4%)
FLIR Systems, Inc. ‡ ^		39,000		1,197
Health Care Providers & Services (1.6%)
Nighthawk Radiology Holdings, Inc. ‡ ^		172,000		836
Hotels, Restaurants & Leisure (1.6%)
Peet’s Coffee & Tea, Inc. ‡ ^		34,000		790
Industrial Conglomerates (1.8%)
General Electric Co.		55,000		891
Internet & Catalog Retail (4.8%)
Amazon.com, Inc. ‡ ^		47,805		2,451
Internet Software & Services (6.8%)
Google, Inc. -Class A ‡		8,900		2,738
Valueclick, Inc. ‡		101,265		693
IT Services (2.7%)
Alliance Data Systems Corp. ‡ ^		12,500		582
NeuStar, Inc. -Class A ‡		41,400		792
Leisure Equipment & Products (1.6%)
Hasbro, Inc. ^		28,500		831
Oil, Gas & Consumable Fuels (2.2%)
Petroleo Brasileiro SA ADR		20,600		504
Petroleo Brasileiro SA -Class A ADR ^		29,300		598
Pharmaceuticals (2.4%)
Allergan, Inc.		30,300		1,222
Road & Rail (1.6%)
Landstar System, Inc. ^		20,820		800
Software (3.1%)
Macrovision Solutions Corp. ‡ ^		126,666		1,602
Wireless Telecommunication Services (2.8%)
Metropcs Communications, Inc. ‡ ^		95,000		1,411
Total Common Stocks (cost $51,376)				38,512

	Principal
REPURCHASE AGREEMENT (24.4%)
State Street Repurchase Agreement 0.01%, dated 12/31/2008, to be repurchased at $12,387 on 01/02/2009 ◊ •	$	12,387	12,387
Total Repurchase Agreement (cost $12,387)			12,387

	Shares
SECURITIES LENDING COLLATERAL (15.4%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.14% ◊▲		7,850,149		7,850
Total Securities Lending Collateral (cost $7,850)				7,850
Total Investment Securities (cost $71,613)#			$	58,749

NOTES TO SCHEDULE OF INVESTMENTS:

^	All or a portion of this security is on loan. The value of all securities on loan is $7,662.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 4.42% to 4.91%, maturity dates ranging from 11/01/2032 to 10/01/2033, and with market values plus accrued interests of $12,980.
▲	Interest rate shown reflects the yield at 12/31/2008.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
#	Aggregate cost for federal income tax purposes is $71,749. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $2,958 and $15,958, respectively. Net unrealized depreciation for tax purposes is $13,000.

DEFINITIONS:

ADR American Depositary Receipt

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

27

Transamerica Premier Growth Opportunities Fund

SCHEDULE OF INVESTMENTS
At December 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (95.7%)
Aerospace & Defense (3.8%)
Precision Castparts Corp.		40,000	$	2,379
Rockwell Collins, Inc.		16,700		653
Air Freight & Logistics (6.4%)
CH Robinson Worldwide, Inc. ^		76,000		4,182
Expeditors International of Washington, Inc.		23,500		782
Auto Components (2.6%)
BorgWarner, Inc. ^		92,400		2,011
Capital Markets (5.8%)
Greenhill & Co., Inc. ^		32,795		2,288
T. Rowe Price Group, Inc. ^		63,757		2,260
Chemicals (1.4%)
Ecolab, Inc.		31,000		1,090
Commercial Banks (1.2%)
Cullen/Frost Bankers, Inc. ^		17,800		902
Commercial Services & Supplies (1.0%)
Ritchie Bros. Auctioneers, Inc. ^		36,000		771
Communications Equipment (2.5%)
Juniper Networks, Inc. ‡		21,400		375
Polycom, Inc. ‡		117,200		1,583
Construction & Engineering (3.1%)
Jacobs Engineering Group, Inc. ‡		50,300		2,419
Construction Materials (0.8%)
Martin Marietta Materials, Inc. ^		6,300		612
Diversified Consumer Services (5.3%)
Strayer Education, Inc.		19,300		4,138
Diversified Financial Services (1.7%)
CME Group, Inc. -Class A		6,320		1,315
Electrical Equipment (0.5%)
Cooper Industries, Ltd. -Class A		13,000		380
Electronic Equipment & Instruments (4.4%)
FLIR Systems, Inc. ‡ ^		42,200		1,295
Trimble Navigation, Ltd. ‡ ^		98,700		2,133
Energy Equipment & Services (2.0%)
Cameron International Corp. ‡		76,700		1,572
Health Care Equipment & Supplies (4.5%)
Idexx Laboratories, Inc. ‡ ^		33,000		1,191
Intuitive Surgical, Inc. ‡ ^		14,350		1,822
Varian Medical Systems, Inc. ‡		14,600		512
Health Care Technology (1.1%)
Cerner Corp. ‡ ^		22,000		846
Hotels, Restaurants & Leisure (1.5%)
Burger King Holdings, Inc. ^		49,307		1,177
Internet Software & Services (0.4%)
Valueclick, Inc. ‡		45,000		308
IT Services (2.5%)
Alliance Data Systems Corp. ‡ ^		19,800		921
NeuStar, Inc. -Class A ‡ ^		54,000		1,033
Leisure Equipment & Products (1.8%)
Hasbro, Inc. ^		49,200		1,435
Life Sciences Tools & Services (6.4%)
Covance, Inc. ‡ ^		48,400		2,228
Techne Corp.		44,055		2,842
Machinery (5.7%)
Donaldson Co., Inc. ^		40,700		1,370
Kennametal, Inc.		103,000		2,286
PACCAR, Inc. ^		27,500		786
Oil, Gas & Consumable Fuels (0.9%)
Range Resources Corp. ^		20,700		712
Pharmaceuticals (1.6%)
Allergan, Inc.		30,400		1,226
Professional Services (1.5%)
FTI Consulting, Inc. ‡ ^		26,000		1,162
Real Estate Investment Trusts (2.1%)
Plum Creek Timber Co., Inc. ^		46,500		1,615
Software (13.5%)
Activision Blizzard, Inc. ‡ ^		289,000		2,497
Adobe Systems, Inc. ‡		41,100		875
Informatica Corp. ‡ ^		83,000		1,140
Intuit, Inc. ‡		130,300		3,100
Macrovision Solutions Corp. ‡ ^		32,000		405
Quality Systems, Inc. ^		9,100		397
Salesforce.com, Inc. ‡ ^		66,500		2,129
Specialty Retail (2.3%)
Guess, Inc. ^		116,800		1,793
Textiles, Apparel & Luxury Goods (1.8%)
Carter’s, Inc. ‡		73,600		1,417
Trading Companies & Distributors (5.6%)
WW Grainger, Inc.		55,222		4,354
Total Common Stocks (cost $92,083)				74,719

	Principal
REPURCHASE AGREEMENT (4.9%)
State Street Repurchase Agreement 0.01%, dated 12/31/2008, to be repurchased at $3,804 on 01/02/2009 ◊ •	$	3,804	3,804
Total Repurchase Agreement (cost $3,804)			3,804

	Shares
SECURITIES LENDING COLLATERAL (13.2%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.14% ◊▲		10,290,203		10,290
Total Securities Lending Collateral (cost $10,290)				10,290
Total Investment Securities (cost $106,177)#			$	88,813

NOTES TO SCHEDULE OF INVESTMENTS:

^	All or a portion of this security is on loan. The value of all securities on loan is $10,054.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 0.77%, a maturity date of 05/25/2036, and with a market value plus accrued interest of $3,882.
▲	Interest rate shown reflects the yield at 12/31/2008.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
#	Aggregate cost for federal income tax purposes is $106,634. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $3,116 and $20,937, respectively. Net unrealized depreciation for tax purposes is $17,821.

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

28

Transamerica Premier Balanced Fund

SCHEDULE OF INVESTMENTS
At December 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (57.8%)
Aerospace & Defense (1.0%)
Boeing Co.		65,000	$	2,774
Air Freight & Logistics (2.0%)
CH Robinson Worldwide, Inc. ^		60,000		3,302
Expeditors International of Washington, Inc. ^		70,000		2,329
Auto Components (2.5%)
BorgWarner, Inc. ^		140,000		3,048
Johnson Controls, Inc. ^		220,000		3,995
Biotechnology (2.8%)
Gilead Sciences, Inc. ‡ ^		150,000		7,671
Capital Markets (6.8%)
BlackRock, Inc. -Class A ^		35,000		4,695
Charles Schwab Corp.		400,000		6,468
Merrill Lynch & Co., Inc.		300,000		3,492
T. Rowe Price Group, Inc. ^		118,829		4,211
Chemicals (1.8%)
Sigma-Aldrich Corp. ^		120,000		5,069
Communications Equipment (2.2%)
Qualcomm, Inc.		170,000		6,091
Computers & Peripherals (2.3%)
Apple, Inc. ‡ ^		75,000		6,401
Construction & Engineering (1.7%)
Jacobs Engineering Group, Inc. ‡ ^		100,000		4,810
Consumer Finance (0.7%)
American Express Co. ^		110,000		2,040
Diversified Telecommunication Services (2.9%)
Verizon Communications, Inc.		240,000		8,136
Electronic Equipment & Instruments (2.0%)
Tyco Electronics, Ltd.		350,000		5,674
Energy Equipment & Services (0.8%)
Schlumberger, Ltd.		50,000		2,116
Food & Staples Retailing (1.1%)
Costco Wholesale Corp. ^		57,000		2,993
Health Care Equipment & Supplies (4.0%)
Becton Dickinson & Co.		87,000		5,950
Covidien, Ltd.		80,000		2,899
Varian Medical Systems, Inc. ‡		75,000		2,628
Industrial Conglomerates (1.3%)
General Electric Co.		230,000		3,726
Internet & Catalog Retail (1.9%)
Amazon.com, Inc. ‡ ^		105,000		5,384
Internet Software & Services (2.1%)
Google, Inc. -Class A ‡		19,000		5,845
Machinery (5.9%)
Caterpillar, Inc. ^		85,000		3,797
Kennametal, Inc.		320,000		7,101
PACCAR, Inc. ^		190,000		5,434
Oil, Gas & Consumable Fuels (1.3%)
Anadarko Petroleum Corp.		90,000		3,469
Road & Rail (2.2%)
Burlington Northern Santa Fe Corp. ^		82,000		6,208
Semiconductors & Semiconductor Equipment (1.7%)
Intel Corp. ^		320,000		4,691
Software (5.0%)
Adobe Systems, Inc. ‡		275,000		5,855
Oracle Corp. ‡ ^		250,000		4,433
Salesforce.com, Inc. ‡ ^		114,980		3,681
Trading Companies & Distributors (1.8%)
WW Grainger, Inc.		63,000		4,967
Total Common Stocks (cost $215,699)				161,383

	Principal
U.S. GOVERNMENT OBLIGATIONS (5.4%)
U.S. Treasury Bond
4.38% due 02/15/2038 ^	$	8,207	10,992
4.50% due 05/15/2038 ^		120	164
5.00% due 05/15/2037 ^		780	1,130
U.S. Treasury Inflation Indexed Bond
1.75% due 01/15/2028 ^		1,272	1,175
U.S. Treasury Inflation Indexed Note
1.38% due 07/15/2018		1,341	1,255
U.S. Treasury Note
3.75% due 11/15/2018		430	487
Total U.S. Government Obligations (cost $11,874)			15,203
U.S. GOVERNMENT AGENCY OBLIGATIONS (13.1%)
Fannie Mae
4.50% due 07/25/2021		1,909	1,928
5.00% due 04/25/2034 - 09/01/2037		10,602	10,790
5.50% due 10/01/2036 - 11/01/2038		11,791	12,099
Freddie Mac
4.25% due 10/15/2026		1,193	1,198
4.78% due 03/01/2035 *		1,519	1,528
5.00% due 10/15/2030 - 11/15/2032		6,345	6,463
Government National Mortgage Association
4.50% due 02/20/2037 *		2,744	2,707
Total U.S. Government Agency Obligations (cost $35,844)			36,713
MORTGAGE-BACKED SECURITIES (2.7%)
Bear Stearns Commercial Mortgage Securities
Series 2006-PW14, Class A4
5.20% due 12/11/2038		1,990	1,623
Crown Castle Towers LLC
Series 2006-1A, Class AFX
5.24% due 11/15/2036 -144A		1,778	1,479
Morgan Stanley Capital I
Series 2006-HQ10, Class A4
5.33% due 11/12/2041		2,019	1,575
SBA CMBS Trust
Series 2006-1A, Class A
5.31% due 11/15/2036 -144A		1,770	1,416
Wachovia Bank Commercial Mortgage Trust
Series 2006-C28, Class A4
5.57% due 10/15/2048		1,946	1,495
Total Mortgage-Backed Securities (cost $9,515)			7,588
ASSET-BACKED SECURITY (0.5%)
USAA Auto Owner Trust
Series 2007-2, Class A3
4.90% due 02/15/2012		1,465	1,447
Total Asset-Backed Security (cost $1,465)			1,447
CORPORATE DEBT SECURITIES (19.6%)
Airlines (0.4%)
Continental Airlines, Inc.
7.49%, due 10/02/2010		638	574
Delta Air Lines, Inc.
7.57%, due 11/18/2010		585	491

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

29

	Principal		Value
Automobiles (0.8%)
Daimler Finance North America LLC
2.43%, due 03/13/2009 *	$	1,190	$	1,147
7.20%, due 09/01/2009		1,280		1,242
Beverages (1.8%)
Coca-Cola Enterprises, Inc.
3.31%, due 05/06/2011 *		1,340		1,269
Diageo Capital PLC
5.75%, due 10/23/2017		1,091		1,056
Molson Coors Capital Finance ULC
4.85%, due 09/22/2010		1,345		1,325
Sabmiller PLC
6.20%, due 07/01/2011 -144A		1,270		1,258
Capital Markets (0.4%)
Merrill Lynch & Co., Inc.
5.45%, due 02/05/2013		1,260		1,211
Chemicals (0.9%)
Lubrizol Corp.
4.63%, due 10/01/2009		1,640		1,611
PPG Industries, Inc.
5.75%, due 03/15/2013		820		811
Commercial Banks (1.3%)
Barclays Bank PLC
7.70%, due 04/25/2018-144A § Ž		1,090		721
M&I Marshall & Ilsley Bank
2.48%, due 12/04/2012 *		700		548
PNC Bank NA
6.00%, due 12/07/2017 ^		425		422
6.88%, due 04/01/2018		745		793
Wells Fargo Bank NA
5.75%, due 05/16/2016		1,000		1,056
Computers & Peripherals (0.4%)
Hewlett-Packard Co.
6.13%, due 03/01/2014		1,135		1,206
Consumer Finance (1.1%)
American Express Credit Corp.
1.87%, due 05/27/2010 *		700		647
Discover Financial Services
2.63%, due 06/11/2010 *		1,173		1,004
John Deere Capital Corp.
2.94%, due 06/10/2011 *		1,440		1,314
Containers & Packaging (0.3%)
Rexam PLC
6.75%, due 06/01/2013 -144A		880		779
Diversified Financial Services (1.4%)
American Honda Finance Corp.
5.13%, due 12/15/2010 -144A		1,290		1,272
Glencore Funding LLC
6.00%, due 04/15/2014 -144A		706		286
Pemex Finance, Ltd.
9.03%, due 02/15/2011		486		496
Textron Financial Corp.
6.00%, due 11/20/2009		1,950		1,821
Diversified Telecommunication Services (0.9%)
Telefonica Europe BV
7.75%, due 09/15/2010		1,200		1,218
Verizon Communications, Inc.
8.75%, due 11/01/2018		1,275		1,496
Energy Equipment & Services (0.3%)
Weatherford International, Inc.
6.63%, due 11/15/2011		750		742
Food & Staples Retailing (0.6%)
Safeway, Inc.
1.82%, due 03/27/2009 *		1,150		1,137
Stater Brothers Holdings, Inc.
8.13%, due 06/15/2012		650		588
Food Products (0.8%)
Cargill, Inc.
5.60%, due 09/15/2012 -144A		1,154		1,087
General Mills, Inc.
4.19%, due 01/22/2010 *		600		576
Michael Foods, Inc.
8.00%, due 11/15/2013		500		430
Hotels, Restaurants & Leisure (0.3%)
Royal Caribbean Cruises, Ltd.
8.75%, due 02/02/2011		715		551
Wyndham Worldwide Corp.
6.00%, due 12/01/2016		668		269
Household Products (0.2%)
Kimberly-Clark Corp.
6.63%, due 08/01/2037		580		651
Insurance (0.1%)
Oil Insurance, Ltd.
7.56%,due 06/30/2011-144A § Ž		460		173
IT Services (0.2%)
Aramark Corp.
8.50%, due 02/01/2015		600		543
Machinery (0.3%)
Tyco Electronics Group SA
6.55%, due 10/01/2017		934		785
Media (1.5%)
Walt Disney Co.
4.50%, due 12/15/2013		1,360		1,369
News America Holdings, Inc.
7.75%, due 12/01/2045		480		468
Time Warner Cable, Inc.
6.75%, due 07/01/2018		1,220		1,175
Viacom, Inc.
2.27%, due 06/16/2009 *		1,230		1,207
Metals & Mining (0.3%)
Arcelormittal
5.38%, due 06/01/2013 ^		1,050		792
Oil, Gas & Consumable Fuels (2.5%)
Anadarko Petroleum Corp.
2.40%, due 09/15/2009 *		1,315		1,258
Energy Transfer Partners, LP
9.70%, due 03/15/2019		1,335		1,376
Enterprise Products Operating LLC
7.50%, due 02/01/2011		1,390		1,365
Husky Energy, Inc.
6.80%, due 09/15/2037		820		683
PetroHawk Energy Corp.
9.13%, due 07/15/2013		500		405
Sempra Energy
9.80%, due 02/15/2019		1,125		1,255
Teppco Partners, LP
7.00%, due 06/01/2067 §		500		268
Valero Logistics Operations, LP
6.88%, due 07/15/2012		850		768

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

30

	Principal		Value
Pharmaceuticals (0.4%)
Allergan, Inc.
5.75%, due 04/01/2016	$	1,230	$	1,177
Real Estate Investment Trusts (1.9%)
BRE Properties, Inc.
5.75%, due 09/01/2009		1,670		1,590
Hospitality Properties Trust
6.75%, due 02/15/2013		1,213		751
PPF Funding, Inc.
5.35%, due 04/15/2012 -144A		1,646		1,248
Wea Finance LLC / WCI Finance LLC
5.40%, due 10/01/2012 -144A		1,250		959
Weingarten Realty Investors
5.26%, due 05/15/2012		1,000		873
Real Estate Management & Development (0.2%)
Post Apartment Homes, LP
6.30%, due 06/01/2013		537		432
Road & Rail (0.3%)
Erac USA Finance Co.
6.38%, due 10/15/2017 -144A		775		538
Hertz Corp.
8.88%, due 01/01/2014		470		289
Total Corporate Debt Securities (cost $60,851)				54,852
REPURCHASE AGREEMENT (0.8%)
State Street Repurchase Agreement 0.01%, dated 12/31/2008, to be repurchased at $2,181 on 01/02/2009 ◊ •		2,181		2,181
Total Repurchase Agreement (cost $2,181)				2,181

	Shares
SECURITIES LENDING COLLATERAL (13.3%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.14% ◊ ▲		37,098,176		37,098
Total Securities Lending Collateral (cost $37,098)				37,098
Total Investment Securities (cost $374,527)#			$	316,465

NOTES TO SCHEDULE OF INVESTMENTS:

^	All or a portion of this security is on loan. The value of all securities on loan is $36,279.
‡	Non-income producing security.
§	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 12/31/2008.
*	Floating or variable rate note. Rate is listed as of 12/31/2008.
Ž	The security has a perpetual maturity. The date shown is the next call date.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 1.55%, a maturity date of 08/15/2036, and with a market value plus accrued interest of $2,226.
▲	Interest rate shown reflects the yield at 12/31/2008.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
#	Aggregate cost for federal income tax purposes is $374,899. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $14,276 and $72,710, respectively. Net unrealized depreciation for tax purposes is $58,434.

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 12/31/2008, these securities aggregated $11,216, or 4.01% of the Fund’s net assets.
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

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

31

Transamerica Premier High Yield Bond Fund

SCHEDULE OF INVESTMENTS
At December 31, 2008
(all amounts except share amounts in thousands)

	Principal		Value
CORPORATE DEBT SECURITIES (87.8%)
Aerospace & Defense (1.9%)
Transdigm, Inc.
7.75%, due 07/15/2014	$	750	$	615
Auto Components (0.4%)
Tenneco, Inc.
8.13%, due 11/15/2015		270		124
Beverages (2.1%)
Beverages & More, Inc.
9.25%, due 03/01/2012 -144A		1,000		700
Biotechnology (2.9%)
FMC Finance III SA
6.88%, due 07/15/2017		1,000		935
Chemicals (0.3%)
Momentive Performance Materials, Inc.
9.75%, due 12/01/2014 Ŭ		230		98
Commercial Services & Supplies (2.7%)
Iron Mountain, Inc.
7.75%, due 01/15/2015 ^		1,000		897
Construction Materials (2.4%)
Texas Industries, Inc.
7.25%, due 07/15/2013		1,000		772
Consumer Finance (2.0%)
Cardtronics, Inc.
9.25%, due 08/15/2013 Ŭ		1,000		670
Containers & Packaging (2.1%)
Graphic Packaging International, Inc.
9.50%, due 08/15/2013		1,000		690
Diversified Consumer Services (2.3%)
Education Management LLC
8.75%, due 06/01/2014		1,000		760
Diversified Financial Services (3.7%)
Icahn Enterprises, LP
8.13%, due 06/01/2012		1,000		770
Sensus Metering Systems, Inc.
8.63%, due 12/15/2013		600		438
Electric Utilities (1.6%)
Energy Future Holdings Corp.
10.88%, due 11/01/2017 -144A		725		515
Electrical Equipment (2.3%)
Belden, Inc.
7.00%, due 03/15/2017		1,000		750
Energy Equipment & Services (1.1%)
Seitel, Inc.
9.75%, due 02/15/2014		1,000		360
Food & Staples Retailing (5.4%)
New Albertsons, Inc.
7.25%, due 05/01/2013		1,000		845
Stater Brothers Holdings, Inc.
8.13%, due 06/15/2012		1,000		905
Food Products (2.6%)
Michael Foods, Inc.
8.00%, due 11/15/2013		1,000		860
Health Care Equipment & Supplies (1.5%)
Biomet, Inc.
10.00%, due 10/15/2017		500		480
Health Care Providers & Services (2.8%)
Community Health Systems, Inc.
8.88%, due 07/15/2015 ^		1,000		920
Hotels, Restaurants & Leisure (6.6%)
Carrols Corp.
9.00%, due 01/15/2013		1,000		675
MGM Mirage, Inc.
8.50%, due 09/15/2010		1,000		840
Royal Caribbean Cruises, Ltd.
7.00%, due 06/15/2013 ^		1,000		570
Station Casinos, Inc.
6.63%, due 03/15/2018		1,000		57
Industrial Conglomerates (2.4%)
Susser Holdings LLC
10.63%, due 12/15/2013		912		798
IT Services (0.3%)
ACE Cash Express, Inc.
10.25%, due 10/01/2014 -144A		500		100
Machinery (4.1%)
Polypore, Inc.
8.75%, due 05/15/2012		800		576
Titan International, Inc.
8.00%, due 01/15/2012		1,000		740
Media (7.7%)
Intelsat Jackson Holdings, Ltd.
11.25%, due 06/15/2016 ^		1,000		910
Kabel Deutschland GmbH
10.63%, due 07/01/2014		1,000		890
Lamar Media Corp.
6.63%, due 08/15/2015 ^		1,000		723
Metals & Mining (2.3%)
Algoma Acquisition Corp.
9.88%, due 06/15/2015 -144A		1,000		380
Steel Dynamics, Inc.
7.38%, due 11/01/2012		500		365
Oil, Gas & Consumable Fuels (8.8%)
Enterprise Products Operating, LP
8.38%, due 08/01/2066 §		1,000		550
Markwest Energy Finance Corp.
8.50%, due 07/15/2016		1,000		638
Opti Canada, Inc.
8.25%, due 12/15/2014		1,000		540
PetroHawk Energy Corp.
9.13%, due 07/15/2013		1,000		810
Petroleum Development Corp.
12.00%, due 02/15/2018		500		313
Paper & Forest Products (1.8%)
Exopack Holding, Inc.
11.25%, due 02/01/2014		1,000		585
Professional Services (1.9%)
FTI Consulting, Inc.
7.75%, due 10/01/2016		750		617
Real Estate Investment Trusts (2.3%)
Host Hotels & Resorts, LP
6.38%, due 03/15/2015		1,000		745
Road & Rail (3.5%)
Hertz Corp.
10.50%, due 01/01/2016		750		342
Kansas City Southern Railway
7.63%, due 12/01/2013		1,000		820

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

32

	Principal		Value
Specialty Retail (6.0%)
Group 1 Automotive, Inc.
8.25%, due 08/15/2013	$	1,000	$	670
Penske Auto Group, Inc.
7.75%, due 12/15/2016		1,000		465
Sally Holdings LLC
9.25%, due 11/15/2014 ^		1,000		860
Total Corporate Debt Securities (cost $40,025)				28,683
CONVERTIBLE BONDS (3.4%)
Capital Markets (2.5%)
Merrill Lynch & Co., Inc.
Zero Coupon, due 03/13/2032		750		.810
Wireless Telecommunication Services (0.9%)
SBA Communications Corp.
1.88%, due 05/01/2013 -144A		500		289
Total Convertible Bonds (cost $1,113)				1,099
REPURCHASE AGREEMENT (5.8%)
State Street Repurchase Agreement 0.01%, dated 12/31/2008, to be repurchased at $1,891 on 01/02/2009 ◊ •		1,891		1,891
Total Repurchase Agreement (cost $1,891)				1,891

	Shares
SECURITIES LENDING COLLATERAL (6.3%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.14% ◊ ▲		2,062,243		2,062
Total Securities Lending Collateral (cost $2,062)				2,062
Total Investment Securities (cost $45,091)#			$	33,735

NOTES TO SCHEDULE OF INVESTMENTS:

Ŭ	Step bond. Interest rate may increase as the credit rating changes.
^	All or a portion of this security is on loan. The value of all securities on loan is $2,020.
§	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 12/31/2008.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 5.13%, a maturity date of 01/01/2034, and with a market value plus accrued interest of $2,134.
▲	Interest rate shown reflects the yield at 12/31/2008.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
#	Aggregate cost for federal income tax purposes is $45,091. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $43 and $11,399, respectively. Net unrealized depreciation for tax purposes is $11,356.

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 12/31/2008, these securities aggregated $1,984, or 6.07% of the Fund’s net assets.
LLC	Limited Liability Company
LP	Limited Partnership

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

33

Transamerica Premier Cash Reserve Fund

SCHEDULE OF INVESTMENTS
At December 31, 2008
(all amounts in thousands)

	Principal		Value
COMMERCIAL PAPER (96.0%)
Beverages (5.0%)
Coca-Cola Co.
1.90%, due 01/08/2009 - 144A	$	750	$	750
2.25%, due 01/06/2009 - 144A		2,700		2,699
Capital Markets (2.9%)
Merrill Lynch & Co., Inc.
1.82%, due 01/05/2009		637		637
0.10%, due 01/23/2009		1,400		1,398
Chemicals (5.0%)
Ecolab, Inc.
0.10%, due 01/02/2009 - 144A		400		400
1.50%, due 01/07/2009 - 144A		3,050		3,049
Commercial Banks (19.3%)
Bank of Scotland PLC
1.92%, due 03/12/2009		3,400		3,400
Barclays
1.12%, due 04/20/2009		1,400		1,395
2.24%, due 01/26/2009		1,950		1,947
Royal Bank of Scotland PLC
1.00%, due 02/06/2009		3,350		3,347
UBS Finance Delaware LLC
1.54%, due 02/17/2009		2,100		2,096
2.05%, due 01/20/2009		1,250		1,249
Commercial Services & Supplies (4.8%)
Pitney Bowes, Inc.
2.05%, due 01/05/2009 - 144A		3,300		3,299
Computers & Peripherals (4.3%)
Hewlett-Packard Co.
1.50%, due 01/02/2009 - 144A		3,000		3,000
Diversified Financial Services (37.0%)
Alpine Securitization
1.37%, due 01/07/2009 - 144A		700		700
American Honda Finance Corp.
2.50%, due 01/06/2009 - 01/09/2009		3,400		3,399
Bank of America Corp.
1.13%, due 01/29/2009		500		499
CAFCO LLC
1.20%, due 02/03/2009 - 144A		1,400		1,399
1.30%, due 01/23/2009 - 144A		1,450		1,449
Caterpillar Financial Services Corp.
1.20%, due 01/08/2009		3,400		3,399
CIESCO LLC
0.35%, due 02/10/2009 - 144A		500		500
General Electric Capital Corp.
1.10%, due 01/30/2009		2,750		2,747
MetLife Funding, Inc.
1.30%, due 01/14/2009		3,400		3,398
PACCAR Financial Corp.
1.22%, due 01/16/2009		2,950		2,948
Rabobank USA Financial Corp.
1.40%, due 01/27/2009		2,000		1,998
Toyota Motor Credit Corp.
1.20%, due 03/19/2009		1,200		1,197
1.30%, due 03/30/2009		1,200		1,196
1.45%, due 04/16/2009		1,000		996
Diversified Telecommunication Services (2.2%)
AT&T, Inc.
2.10%, due 01/07/2009 - 144A		1,500		1,499
Insurance (4.9%)
Prudential Funding LLC
1.02%, due 02/17/2009		3,400		3,395
Multiline Retail (1.9%)
Walgreen Co.
1.20%, due 01/05/2009 - 144A		1,350		1,350
Personal Products (5.0%)
Procter & Gamble Co.
1.15%, due 01/09/2009 - 144A		1,100		1,100
1.50%, due 01/14/2009 - 144A		2,350		2,349
Pharmaceuticals (3.7%)
Eli Lilly & Co.
1.25%, due 01/21/2009 - 144A		2,600		2,598
Total Commercial Paper (cost $66,782)				66,782
CORPORATE DEBT SECURITIES (4.2%)
Aerospace & Defense (2.8%)
Honeywell International, Inc. *
2.06%, due 03/13/2009		1,950		1,950
Metals & Mining (1.4%)
BHP Billiton Finance, Ltd. *
1.50%, due 03/27/2009		1,000		999
Total Corporate Debt Securities (cost $2,949)				2,949
REPURCHASE AGREEMENT (0.3%)
State Street Repurchase Agreement 0.01%, dated 12/31/2008, to be repurchased at $225 on 01/02/2009 ◊ •		225		225
Total Repurchase Agreement (cost $225)				225
Total Investment Securities (cost $69,956)#			$	69,956

NOTES TO SCHEDULE OF INVESTMENTS:

*	Floating or variable rate note. Rate is listed as of 12/31/2008.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 0.77%, a maturity date of 05/25/2036, and with a market value plus accrued interest of $230.
#	Aggregate cost for federal income tax purposes is $69,956.

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 12/31/2008, these securities aggregated $26,141, or 37.57% of the Fund’s net assets.
LLC	Limited Liability Company
PLC	Public Limited Company

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

34

Transamerica Premier Institutional Bond Fund

SCHEDULE OF INVESTMENTS
At December 31, 2008
(all amounts except share amounts in thousands)

	Principal		Value
U.S. GOVERNMENT OBLIGATIONS (7.6%)
U.S. Treasury Bond
4.38%, due 02/15/2038 ^	$	37	$	50
5.00%, due 05/15/2037 ^		4		6
U.S. Treasury Inflation Indexed Bond, TIPS
1.75%, due 01/15/2028 ^		10		9
U.S. Treasury Inflation Indexed Note, TIPS
1.38%, due 07/15/2018		10		9
U.S. Treasury Note
0.88%, due 12/31/2010		10		10
Total U.S. Government Obligations (cost $70)				84
U.S. GOVERNMENT AGENCY OBLIGATIONS (50.4%)
Fannie Mae
4.72%, due 10/01/2035 *		24		24
5.00%, due 02/01/2036 - 03/01/2036		71		72
5.50%, due 03/01/2018 - 10/01/2038		147		151
6.00%, due 08/01/2036 - 12/01/2037		60		62
Freddie Mac
4.00%, due 10/15/2029		25		25
4.25%, due 10/15/2026		14		14
4.81%, due 06/01/2035 *		27		27
5.00%, due 06/01/2021 - 02/01/2036		110		112
5.50%, due 11/01/2018		10		11
5.52%, due 09/01/2037 *		26		27
6.00%, due 01/01/2037		36		37
Total U.S. Government Agency Obligations (cost $552)				562
MORTGAGE-BACKED SECURITIES (5.1%)
American Tower Trust
Series 2007-1A, Class C
5.62%, due 04/15/2037 -144A		25		17
Bear Stearns Commercial Mortgage Securities
Series 2006-PW14, Class A4
5.20%, due 12/11/2038		25		20
Morgan Stanley Capital I
Series 2006-HQ10, Class A4
5.33%, due 11/12/2041		25		20
Total Mortgage-Backed Securities (cost $75)				57
ASSET-BACKED SECURITY (0.8%)
USAA Auto Owner Trust
Series 2008-2, Class A3
4.64%, due 10/15/2012		10		10
Total Asset-Backed Security (cost $10)				10
CORPORATE DEBT SECURITIES (35.9%)
Aerospace & Defense (1.1%)
Boeing Co.
8.75%, due 08/15/2021		10		12
Airlines (0.9%)
Continental Airlines, Inc.
7.49%, due 10/02/2010		6		5
Delta Air Lines, Inc.
7.57%, due 11/18/2010		5		4
Automobiles (0.8%)
Daimler Finance North America LLC
8.00%, due 06/15/2010 ^		10		9
Beverages (3.5%)
Coca-Cola Enterprises, Inc.
3.31%, due 05/06/2011 *		10		9
Diageo Capital PLC
5.75%, due 10/23/2017		10		10
Molson Coors Capital Finance ULC
4.85%, due 09/22/2010		10		10
Sabmiller PLC
6.20%, due 07/01/2011 -144A		10		10
Capital Markets (0.9%)
Merrill Lynch & Co., Inc.
5.45%, due 02/05/2013		10		10
Chemicals (0.9%)
Lubrizol Corp.
4.63%, due 10/01/2009		10		10
Commercial Banks (3.4%)
American Express Bank FSB
0.57%, due 10/20/2009 *		10		9
Barclays Bank PLC
7.70%, due 04/25/2018 -144A § Ž		10		7
PNC Bank NA
6.88%, due 04/01/2018		10		11
Wells Fargo Bank NA
4.75%, due 02/09/2015		10		10
Computers & Peripherals (0.9%)
Hewlett-Packard Co.
6.13%, due 03/01/2014		10		11
Construction Materials (0.3%)
Texas Industries, Inc.
7.25%, due 07/15/2013		5		4
Consumer Finance (0.7%)
Discover Financial Services
2.63%, due 06/11/2010 *		9		8
Diversified Financial Services (2.2%)
Caterpillar Financial Services Corp.
7.05%, due 10/01/2018		11		12
General Electric Capital Corp.
4.80%, due 05/01/2013		10		10
Glencore Funding LLC
6.00%, due 04/15/2014 -144A		9		4
Diversified Telecommunication Services (3.1%)
AT&T, Inc.
6.70%, due 11/15/2013		10		11
Telefonica Europe BV
7.75%, due 09/15/2010		10		10
Verizon Communications, Inc.
8.75%, due 11/01/2018		12		14
Electric Utilities (0.4%)
Consolidated Edison Co. of New York, Inc.
6.20%, due 06/15/2036		5		5
Food & Staples Retailing (1.3%)
Safeway, Inc.
1.82%, due 03/27/2009 *		10		10
Stater Brothers Holdings, Inc.
8.13%, due 06/15/2012		5		4
Food Products (2.1%)
Cargill, Inc.
5.60%, due 09/15/2012 -144A		10		9
General Mills, Inc.
4.19%, due 01/22/2010 *		10		10
Michael Foods, Inc.
8.00%, due 11/15/2013		5		4

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

35

	Principal		Value
Household Products (0.5%)
Kimberly-Clark Corp.
6.63%, due 08/01/2037	$	5	$	6
Insurance (0.2%)
Oil Insurance, Ltd.
7.56%, due 06/30/2011 -144A § Ž		5		2
IT Services (0.4%)
Aramark Corp.
8.50%, due 02/01/2015 ^		5		4
Machinery (0.4%)
Tyco Electronics Group SA
6.55%, due 10/01/2017		6		5
Media (2.6%)
Comcast Corp.
1.46%, due 07/14/2009 *		6		6
Walt Disney Co.
4.50%, due 12/15/2013 ^		13		13
Time Warner Cable, Inc.
6.75%, due 07/01/2018 ^		10		10
Metals & Mining (0.3%)
Arcelormittal
5.38%, due 06/01/2013 ^		5		4
Oil, Gas & Consumable Fuels (2.8%)
Energy Transfer Partners, LP
9.70%, due 03/15/2019		15		15
PetroHawk Energy Corp.
9.13%, due 07/15/2013		5		4
Sempra Energy
9.80%, due 02/15/2019		10		11
Paper & Forest Products (0.9%)
Celulosa Arauco y Constitucion SA
8.63%, due 08/15/2010		10		10
Real Estate Investment Trusts (3.6%)
BRE Properties, Inc.
5.75%, due 09/01/2009		20		19
Host Hotels & Resorts, Inc.
7.13%, due 11/01/2013		5		4
PPF Funding, Inc.
5.35%, due 04/15/2012 -144A		10		8
Wea Finance LLC / WCI Finance LLC
5.40%, due 10/01/2012 -144A		11		8
Real Estate Management & Development (0.7%)
Post Apartment Homes, LP
6.30%, due 06/01/2013		10		8
Road & Rail (1.0%)
Hertz Corp.
8.88%, due 01/01/2014 ^		5		3
Norfolk Southern Corp.
6.20%, due 04/15/2009		8		8
Total Corporate Debt Securities (cost $431)				400
REPURCHASE AGREEMENT (0.4%)
State Street Repurchase Agreement 0.01%, dated 12/31/2008, to be repurchased at $4 on 01/02/2009 ◊ •		4		4
Total Repurchase Agreement (cost $4)				4

	Shares
SECURITIES LENDING COLLATERAL (3.4%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.14% ◊ ▲		38,495		38
Total Securities Lending Collateral (cost $38)				38
Total Investment Securities (cost $1,180)#			$	1,155

NOTES TO SCHEDULE OF INVESTMENTS:

^	All or a portion of this security is on loan. The value of all securities on loan is $38.
*	Floating or variable rate note. Rate is listed as of 12/31/2008.
§	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 12/31/2008.
Ž	The security has a perpetual maturity. The date shown is the next call date.
•	Repurchase agreement is collateralized by a U.S. Government Obligation with a zero coupon interest rate, a maturity date of 01/29/2009, and with a market value plus accrued interest of $5.
▲	Interest rate shown reflects the yield at 12/31/2008.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
#	Aggregate cost for federal income tax purposes is $1,180. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $33 and $58, respectively. Net unrealized depreciation for tax purposes is $25.

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 12/31/2008, these securities aggregated $65, or 5.83% of the Fund’s net assets.
TIPS	Treasury Inflated Protected Security
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

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

36

Transamerica Premier Institutional Equity Fund

SCHEDULE OF INVESTMENTS
At December 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (99.2%)
Aerospace & Defense (6.8%)
Boeing Co.		27,000	$	1,152
Raytheon Co. ^		74,000		3,777
Air Freight & Logistics (3.3%)
Expeditors International of Washington, Inc. ^		73,000		2,429
Auto Components (5.0%)
BorgWarner, Inc. ^		67,300		1,465
Johnson Controls, Inc.		121,000		2,197
Automobiles (1.2%)
Daimler AG		23,500		900
Biotechnology (6.3%)
Gilead Sciences, Inc. ‡ ^		90,000		4,603
Capital Markets (5.3%)
Charles Schwab Corp.		100,000		1,617
T. Rowe Price Group, Inc. ^		63,766		2,260
Chemicals (11.3%)
Ecolab, Inc. ^		40,000		1,406
Praxair, Inc.		65,000		3,858
Sigma-Aldrich Corp. ^		70,000		2,957
Commercial Banks (3.7%)
Wells Fargo & Co. ^		91,000		2,683
Communications Equipment (6.9%)
Cisco Systems, Inc. ‡		90,000		1,467
Qualcomm, Inc.		100,000		3,583
Computers & Peripherals (4.1%)
Apple, Inc. ‡ ^		35,100		2,996
Construction & Engineering (3.6%)
Jacobs Engineering Group, Inc. ‡ ^		54,000		2,597
Consumer Finance (1.9%)
American Express Co. ^		73,000		1,354
Diversified Financial Services (1.7%)
CME Group, Inc. -Class A		6,100		1,269
Diversified Telecommunication Services (2.6%)
AT&T, Inc.		67,000		1,910
Electrical Equipment (2.0%)
Emerson Electric Co.		40,000		1,464
Electronic Equipment & Instruments (3.3%)
Tyco Electronics, Ltd.		146,000		2,367
Health Care Equipment & Supplies (6.4%)
Becton Dickinson & Co.		37,000		2,530
Varian Medical Systems, Inc. ‡ ^		60,000		2,102
Industrial Conglomerates (3.1%)
General Electric Co. ^		140,000		2,268
Internet & Catalog Retail (4.4%)
Amazon.com, Inc. ‡ ^		62,000		3,179
Internet Software & Services (3.7%)
Google, Inc. -Class A ‡		8,700		2,677
Machinery (5.3%)
Caterpillar, Inc. ^		40,000		1,787
PACCAR, Inc. ^		70,000		2,002
Media (1.9%)
Walt Disney Co.		60,000		1,361
Pharmaceuticals (2.0%)
Allergan, Inc.		36,000		1,452
Road & Rail (3.4%)
Union Pacific Corp. ^		52,000		2,486
Total Common Stocks (cost $99,262)				72,155
SECURITIES LENDING COLLATERAL (13.6%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.14% ◊ ▲		9,875,469		9,875
Total Securities Lending Collateral (cost $9,875)				9,875
Total Investment Securities (cost $109,137)#			$	82,030

NOTES TO SCHEDULE OF INVESTMENTS:

^	All or a portion of this security is on loan. The value of all securities on loan is $9,643.
‡	Non-income producing security.
▲	Interest rate shown reflects the yield at 12/31/2008.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
#	Aggregate cost for federal income tax purposes is $109,481. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $643 and $28,094, respectively. Net unrealized depreciation for tax purposes is $27,451.

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

37

Transamerica Premier Institutional Small Cap Value Fund

SCHEDULE OF INVESTMENTS
At December 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (97.9%)
Aerospace & Defense (2.8%)
Alliant Techsystems, Inc. ‡ ^		1,675	$	144
Auto Components (1.6%)
Tenneco, Inc. ‡		27,025		80
Chemicals (6.3%)
Zep, Inc.		16,420		317
Commercial Banks (7.7%)
Bank of Hawaii Corp.		2,470		112
City National Corp.		2,445		119
Wintrust Financial Corp. ^		7,610		157
Communications Equipment (6.4%)
Arris Group, Inc. ‡		25,660		204
Harmonic Lightwaves, Inc. ‡		21,293		119
Consumer Finance (2.2%)
Ezcorp, Inc. -Class A ‡		7,465		114
Electric Utilities (4.1%)
UIL Holdings Corp.		6,985		210
Energy Equipment & Services (1.2%)
Superior Energy Services, Inc. ‡		3,807		61
Health Care Equipment & Supplies (2.2%)
West Pharmaceutical Services, Inc.		2,945		111
Health Care Providers & Services (3.6%)
Nighthawk Radiology Holdings, Inc. ‡		37,360		182
Health Care Technology (5.1%)
Allscripts-Misys Healthcare Solutions, Inc. ^		26,000		258
Hotels, Restaurants & Leisure (5.8%)
Cheesecake Factory ‡		11,520		116
PF Chang’s China Bistro, Inc. ‡ ^		8,429		176
Internet Software & Services (3.2%)
Valueclick, Inc. ‡		23,528		161
IT Services (2.9%)
NeuStar, Inc. -Class A ‡		7,703		147
Life Sciences Tools & Services (7.4%)
Charles River Laboratories International, Inc. ‡		6,285		165
Varian, Inc. ‡		6,125		205
Machinery (2.2%)
Clarcor, Inc.		3,360		111
Media (2.2%)
Lamar Advertising Co. -Class A ‡		8,815		111
Oil, Gas & Consumable Fuels (4.3%)
Goodrich Petroleum Corp. ‡ ^		3,880		116
Petroquest Energy, Inc. ‡ ^		14,650		99
Personal Products (2.1%)
Bare Escentuals, Inc. ‡ ^		19,952		104
Pharmaceuticals (2.7%)
Sepracor, Inc. ‡		12,615		138
Real Estate Investment Trusts (15.6%)
Capstead Mortgage Corp.		43,700		471
Omega Healthcare Investors, Inc.		10,880		174
Potlatch Corp.		5,665		147
Software (3.1%)
Macrovision Solutions Corp. ‡		12,517		158
Textiles, Apparel & Luxury Goods (3.2%)
Hanesbrands, Inc. ‡ ^		12,880		164
Total Common Stocks (cost $6,017)				4,951

	Principal
REPURCHASE AGREEMENT (5.0%)
State Street Repurchase Agreement 0.01%, dated 12/31/2008, to be repurchased at $254 on 01/02/2009 ◊ •	$	254	254
Total Repurchase Agreement (cost $254)			254

	Shares
SECURITIES LENDING COLLATERAL (3.1%)
State Street Navigator Securities Lending Trust - Prime Portfolio, 2.14% ◊ ▲		156,613		157
Total Securities Lending Collateral (cost $157)				157
Total Investment Securities (cost $6,428)#			$	5,362

NOTES TO SCHEDULE OF INVESTMENTS:

^	All or a portion of this security is on loan. The value of all securities on loan is $153.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 5.13%, a maturity date of 01/01/2034, and with a market value plus accrued interest of $1,423.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
▲	Interest rate shown reflects the yield at 12/31/2008.
#	Aggregate cost for federal income tax purposes is $6,425. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $273 and $1,336, respectively. Net unrealized depreciation for tax purposes is $1,063.

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

38

Transamerica Premier Institutional Diversified Equity Fund

SCHEDULE OF INVESTMENTS
At December 31, 2008
(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS (101.2%)
Aerospace & Defense (7.4%)
Boeing Co.		110	$	5
Lockheed Martin Corp.		175		15
Precision Castparts Corp.		210		12
Air Freight & Logistics (2.6%)
CH Robinson Worldwide, Inc. ^		90		5
Expeditors International of Washington, Inc.		200		7
Auto Components (4.2%)
BorgWarner, Inc.		500		11
Johnson Controls, Inc. ^		400		7
Automobiles (1.0%)
Daimler AG		110		4
Beverages (1.3%)
PepsiCo, Inc.		100		5
Capital Markets (10.4%)
BlackRock, Inc. -Class A ^		110		15
Charles Schwab Corp.		810		13
Merrill Lynch & Co., Inc. ^		470		5
T. Rowe Price Group, Inc. ^		330		12
Chemicals (6.5%)
Ecolab, Inc.		300		11
Monsanto Co.		70		5
Sigma-Aldrich Corp. ^		310		13
Communications Equipment (1.7%)
Qualcomm, Inc.		210		8
Computers & Peripherals (6.6%)
Apple, Inc. ‡		150		13
Hewlett-Packard Co.		450		16
Construction & Engineering (2.2%)
Jacobs Engineering Group, Inc. ‡ ^		200		10
Consumer Finance (0.7%)
American Express Co.		170		3
Diversified Financial Services (3.2%)
CME Group, Inc. -Class A		20		4
JPMorgan Chase & Co.		310		10
Diversified Telecommunication Services (4.7%)
Verizon Communications, Inc. ^		600		20
Electronic Equipment & Instruments (1.9%)
Tyco Electronics, Ltd.		520		8
Energy Equipment & Services (0.7%)
Schlumberger, Ltd. ^		75		3
Food & Staples Retailing (3.0%)
Costco Wholesale Corp.		250		13
Health Care Equipment & Supplies (3.8%)
Becton Dickinson & Co.		175		12
Covidien, Ltd.		130		5
Internet & Catalog Retail (2.8%)
Amazon.com, Inc. ‡ ^		240		12
Internet Software & Services (2.1%)
Google, Inc. -Class A ‡		30		9
Leisure Equipment & Products (1.1%)
Hasbro, Inc. ^		160		5
Machinery (8.2%)
Caterpillar, Inc. ^		160		7
Donaldson Co., Inc.		250		8
Kennametal, Inc.		620		14
PACCAR, Inc. ^		230		7
Media (3.5%)
Walt Disney Co.		670		15
Oil, Gas & Consumable Fuels (1.2%)
Anadarko Petroleum Corp. ^		140		5
Real Estate Investment Trusts (2.6%)
Plum Creek Timber Co., Inc. ^		320		11
Road & Rail (2.9%)
Burlington Northern Santa Fe Corp.		165		13
Semiconductors & Semiconductor Equipment (2.2%)
Intel Corp.		650		10
Software (6.4%)
Activision Blizzard, Inc. ‡		400		3
Adobe Systems, Inc. ‡		420		9
Oracle Corp. ‡ ^		300		5
Salesforce.com, Inc. ‡ ^		320		10
Textiles, Apparel & Luxury Goods (3.4%)
Nike, Inc. -Class B ^		290		15
Trading Companies & Distributors (2.9%)
WW Grainger, Inc.		160		13
Total Common Stocks (cost $557)				441

	Principal
REPURCHASE AGREEMENT (2.1%)
State Street Repurchase Agreement 0.01%, dated 12/31/2008, to be repurchased at $9 on 01/02/2009 ◊ •	$	9	9
Total Repurchase Agreement (cost $9)			9

	Shares
SECURITIES LENDING COLLATERAL (9.1%)
State Street Navigator Securities Lending Trust — Prime Portfolio, 2.14% ◊ ▲		39,631		40
Total Securities Lending Collateral (cost $40)				40
Total Investment Securities (cost $606)#			$	490

NOTES TO SCHEDULE OF INVESTMENTS:

^	All or a portion of this security is on loan. The value of all securities on loan is $39.
‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 1.55%, a maturity date of 08/15/2036, and with a market value plus accrued interest of $10.
▲	Interest rate shown reflects the yield at 12/31/2008.
◊	State Street Bank & Trust Company serves as the accounting, custody, and lending agent for the Fund and provides various services on behalf of the Fund.
#	Aggregate cost for federal income tax purposes is $608. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $15 and $133 , respectively. Net unrealized depreciation for tax purposes is $118.

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

39

STATEMENTS OF ASSETS & LIABILITIES
At December 31, 2008
(all amounts except per share amounts in thousands)

										Transamerica
	Transamerica									Premier						Transamerica
	Premier			Transamerica			Transamerica			Growth			Transamerica			Premier High			Transamerica
	Diversified			Premier Equity			Premier Focus			Opportunities			Premier			Yield Bond			Premier Cash
	Equity Fund			Fund			Fund			Fund			Balanced Fund			Fund			Reserve Fund
Assets:
Investment, at cost	$	280,750		$	750,820		$	71,613		$	106,177		$	374,527		$	45,091		$	69,956
Securities loaned, at value	$	26,863		$	46,371		$	7,662		$	10,054		$	36,279		$	2,020		$	—
Investment, at value	$	221,319		$	558,707		$	58,749		$	88,813		$	316,465		$	33,735		$	69,956
Cash		—	(a)		14			—			—			—			—			—
Prepaid money market guarantee insurance		—			—			—			—			—			—			11
Receivables:
Investment securities sold		—			—			—			—			7,300			455			—
Shares of beneficial interest sold		620			1,215			12			17			105			59			43
Interest		—	(a)		—	(a)		—	(a)		—	(a)		1,152			960			6
Income from loaned securities		27			43			8			19			37			3			—
Dividends		296			1,134			75			36			233			—			—
	$	222,262		$	561,113		$	58,844		$	88,885		$	325,292		$	35,212		$	70,016
Liabilities:
Payables:
Investment securities purchased		—			1,899			—			372			—			231			—
Shares of beneficial interest redeemed		118			3,404			68			38			8,351			198			384
Management and advisory fees		70			416			38			58			149			15			4
Distribution and service fees		43			115			11			17			64			1			—
Transfer agent fees		46			81			11			20			61			2			6
Trustees fees		—	(a)		—	(a)		—	(a)		—			—			—	(a)		—
Administration fees		3			9			1			1			5			1			1
Dividends to shareholders		—			—			—			—			—			—			2
Payable for collateral for securities on loan		27,497			47,481			7,850			10,290			37,098			2,062			—
Other		40			72			31			33			49			33			34
		27,817			53,477			8,010			10,829			45,777			2,543			431
Net Assets	$	194,445		$	507,636		$	50,834		$	78,056		$	279,515		$	32,669		$	69,585
Net Assets Consist of:
Paid-in capital	$	257,940		$	843,893		$	68,328		$	109,596		$	342,982		$	72,442		$	69,587
Undistributed net investment income		62			875			11			—			—			59			—
Accumulated net realized loss on investments		(4,126	)		(145,019	)		(4,641	)		(14,176	)		(5,405	)		(28,476	)		(2	)
Net unrealized depreciation of investments		(59,431	)		(192,113	)		(12,864	)		(17,364	)		(58,062	)		(11,356	)		—
Net Assets	$	194,445		$	507,636		$	50,834		$	78,056		$	279,515		$	32,669		$	69,585
Institutional Class
Net Assets	$	—		$	—		$	—		$	—		$	—		$	26,582		$	—
Shares Outstanding		—			—			—			—			—			5,346			—
Net Asset Value, Offering Price and Redemption Price Per Share	$	—		$	—		$	—		$	—		$	—		$	4.97		$	—
Investor Class
Net Assets	$	194,445		$	507,636		$	50,834		$	78,056		$	279,515		$	6,087		$	69,585
Shares Outstanding		19,809			36,523			3,829			4,780			16,435			1,211			69,587
Net Asset Value, Offering Price and Redemption Price Per Share	$	9.82		$	13.90		$	13.28		$	16.33		$	17.01		$	5.03		$	1.00

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

40

							Transamerica			Transamerica
	Transamerica			Transamerica			Premier			Premier
	Premier			Premier			Institutional			Institutional
	Institutional			Institutional			Small Cap			Diversified
	Bond Fund			Equity Fund			Value Fund			Equity Fund
Assets:
Investment, at cost	$	1,180		$	109,137		$	6,428		$	606
Securities loaned, at value	$	38		$	9,643		$	153		$	39
Investment, at value	$	1,155		$	82,030		$	5,362		$	490
Receivables:
Investment securities sold		11			520			1			—
Shares of beneficial interest sold		—			1,036			1			—
Interest		10			—			—	(a)		—	(a)
Income from loaned securities		—			10			—			—
Dividends		—			159			19			1
Due from advisor		16			—			22			13
	$	1,192		$	83,755		$	5,405		$	504
Liabilities:
Payables:
Investment securities purchased		11			—			22			—
Shares of beneficial interest redeemed		—			910			136			—
Management and advisory fees		—			31			—			—
Transfer agent fees		—	(a)		1			2			—	(a)
Trustees fees		—	(a)		—			—	(a)		—	(a)
Administration fees		—	(a)		1			—	(a)		—	(a)
Due to custodian		—			165			—			—	(a)
Payable for collateral for securities on loan		38			9,875			157			40
Other		29			33			29			28
		78			11,016			346			68
Net Assets	$	1,114		$	72,739		$	5,059		$	436
Net Assets Consist of:
Paid-in capital	$	1,198		$	114,349		$	11,133		$	561
Undistributed (accumulated) net investment income (loss)		(1	)		126			8			—
Accumulated net realized loss on investments		(58	)		(14,629	)		(5,016	)		(9	)
Net unrealized depreciation of investments		(25	)		(27,107	)		(1,066	)		(116	)
Net Assets	$	1,114		$	72,739		$	5,059		$	436
Institutional Class
Net Assets	$	1,114		$	72,739		$	5,059		$	436
Shares Outstanding		123			9,762			529			56
Net Asset Value, Offering Price and Redemption Price Per Share	$	8.96		$	7.45		$	9.56		$	7.79

(a) Rounds to less than $1.

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

41

STATEMENTS OF OPERATIONS
For the year ended December 31, 2008
(all amounts in thousands)

	Transamerica									Transamerica						Transamerica
	Premier			Transamerica			Transamerica			Premier Growth			Transamerica			Premier High			Transamerica
	Diversified			Premier Equity			Premier Focus			Opportunities			Premier			Yield Bond			Premier Cash
	Equity Fund			Fund			Fund			Fund			Balanced Fund			Fund			Reserve Fund
Investment Income:
Dividends	$	3,592		$	12,291		$	474		$	756		$	3,626		$	21		$	—
Less withholding taxes on foreign dividends		—			—			(5	)		(1	)		—			—			—
Interest		140			408			87			85			7,175			4,459			2,339
Income from loaned securities-net		157			307			62			166			218			28			—
Total Income		3,889			13,006			618			1,006			11,019			4,508			2,339
Expenses
Management and advisory fees		1,866			7,451			585			908			2,833			255			272
Transfer agent and shareholder servicing fees:
Institutional Class		—			—			—			—			—			1			—
Investor Class		624			1,388			144			261			789			27			90
Distribution and service fees:
Investor Class		647			2,254			182			283			987			31			—
Custodian fees		28			95			10			16			51			15			17
Registration fees
Institutional Class		—			—			—			—			—			—	(a)		—
Investor Class		30			101			20			21			28			32			29
Administration fees		52			180			14			23			79			10			16
Legal fees		14			48			4			6			21			1			4
Audit fees		23			19			25			24			21			24			25
Trustees fees		12			42			3			5			18			2			4
Money market guarantee insurance fees		—			—			—			—			—			—			9
Printing and shareholder reports		22			113			8			14			38			4			7
Other		13			47			4			6			21			3			6
Total expenses before waiver and reimbursement		3,331			11,738			999			1,567			4,886			405			479
Reimbursed expenses and waived fees		(357	)		(1,369	)		—			—			(542	)		(61	)		(267	)
Net Expenses		2,974			10,369			999			1,567			4,344			344			212
Net Investment Income (Loss)		915			2,637			(381	)		(561	)		6,675			4,164			2,127
Net Realized Gain (Loss) from on Investments:
Net realized gain (loss) on investments		(2,752	)		(145,013	)		(4,628	)		(14,019	)		3,790			(6,655	)		(2	)
Change in unrealized depreciation on investments		(127,173	)		(364,089	)		(32,976	)		(42,689	)		(165,457	)		(9,237	)		—
Net Realized and Unrealized Loss		(129,925	)		(509,102	)		(37,604	)		(56,708	)		(161,667	)		(15,892	)		(2	)
Net Increase (Decrease) In Net Assets Resulting from Operations	$	(129,010	)	$	(506,465	)	$	(37,985	)	$	(57,269	)	$	(154,992	)	$	(11,728	)	$	2,125

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

42

							Transamerica			Transamerica
	Transamerica			Transamerica			Premier			Premier
	Premier			Premier			Institutional			Institutional
	Institutional			Institutional			Small Cap			Diversified
	Bond Fund			Equity Fund			Value Fund			Equity Fund
Investment Income:
Dividends	$	—		$	1,392		$	217		$	8
Less withholding taxes on foreign dividends		—			—			—			—	(a)
Interest		59			66			7			—	(a)
Income from loaned securities-net		—			59			10			1
Total Income		59			1,517			234			9
Expenses
Management and advisory fees		5			741			56			4
Transfer agent and shareholder servicing fees:
Institutional Class		—	(a)		15			11			—	(a)
Custodian fees		10			14			11			4
Registration fees
Institutional Class		19			26			24			19
Administration fees		—	(a)		20			1			—	(a)
Legal fees		—	(a)		6			—	(a)		—	(a)
Audit fees		26			25			26			26
Trustees fees		—	(a)		5			—	(a)		—	(a)
Printing and shareholder reports		—	(a)		10			1			—	(a)
Other		1			5			1			1
Total expenses before waiver and reimbursement		61			867			131			54
Reimbursed expenses and waived fees		(56	)		(105	)		(74	)		(49	)
Net Expenses		5			762			57			5
Net Investment Income		54			755			177			4
Net Realized Gain (Loss) from on Investments:
Net realized gain (loss) on investments		(24	)		(14,594	)		(5,033	)		7
Change in unrealized depreciation on investments		(23	)		(43,056	)		(1,195	)		(315	)
Net Realized and Unrealized Loss		(47	)		(57,650	)		(6,228	)		(308	)
Net Increase (Decrease) In Net Assets Resulting from Operations	$	7		$	(56,895	)	$	(6,051	)	$	(304	)

(a) Rounds to less than $1.

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

43

STATEMENTS OF CHANGES IN NET ASSETS
For the years ended:
(all amounts in thousands)

	Transamerica Premier						Transamerica Premier						Transamerica Premier
	Diversified Equity Fund						Equity Fund						Focus Fund
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007			2008			2007
Increase (Decrease) in Net Assets Operations:
Net investment income (loss)	$	915		$	215		$	2,637		$	(1,117	)	$	(381	)	$	(442	)
Net realized gain (loss) on investments		(2,752	)		11,413			(145,013	)		17,531			(4,628	)		13,322
Change in unrealized appreciation (depreciation) on investments		(127,173	)		32,390			(364,089	)		95,774			(32,976	)		3,357
Net increase (decrease) in net assets resulting from operations		(129,010	)		44,018			(506,465	)		112,188			(37,985	)		16,237
Dividends / Distributions to Shareholders
From net investment income:
Investor Class		(430	)		(26	)		(1,762	)		—			—			—
From net realized gains on investments:
Investor Class		(5,449	)		(8,118	)		(7,039	)		(13,873	)		(2,249	)		(38	)
Net decrease in net assets resulting from distributions		(5,879	)		(8,144	)		(8,801	)		(13,873	)		(2,249	)		(38	)
Net Fund Shares Transactions		23,991			61,862			(23,510	)		377,417			(4,304	)		(8,027	)
Net increase (decrease) in net assets		(110,898	)		97,736			(538,776	)		475,732			(44,538	)		8,172
Net Assets
Beginning of year	$	305,343		$	207,607		$	1,046,412		$	570,680		$	95,372		$	87,200
End of year(a)	$	194,445		$	305,343		$	507,636		$	1,046,412		$	50,834		$	95,372
Undistributed Net Investment Income	$	62		$	—		$	875		$	—		$	11		$	—

	Transamerica Premier						Transamerica Premier						Transamerica Premier High
	Growth Opportunities Fund						Balanced Fund						Yield Bond Fund
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007			2008			2007
Increase (Decrease) in Net Assets Operations:
Net investment income (loss)	$	(561	)	$	(714	)	$	6,675		$	5,192		$	4,164		$	7,068
Net realized gain (loss) on investments		(14,019	)		29,103			3,790			17,546			(6,655	)		(1,130	)
Change in unrealized appreciation (depreciation) on investments		(42,689	)		(461	)		(165,457	)		29,621			(9,237	)		(3,829	)
Net increase (decrease) in net assets resulting from operations		(57,269	)		27,928			(154,992	)		52,359			(11,728	)		2,109
Dividends / Distributions to Shareholders
From net investment income:
Institutional Class		—			—			—			—			(3,216	)		(6,381	)
Investor Class		—			—			(6,185	)		(6,341	)		(1,081	)		(761	)
Return of capital:
Investor Class		—			—			(410	)		—			—			—
From net realized gains on investments:
Institutional Class		—			—			—			—			—			—
Investor Class		—			(6,662	)		(10,717	)		(16,991	)		—			—
Net decrease in net assets resulting from distributions		—			(6,662	)		(17,312	)		(23,332	)		(4,297	)		(7,142	)
Net Fund Shares Transactions		(11,526	)		(6,406	)		(23,419	)		69,525			(8,024	)		(60,264	)
Net increase (decrease) in net assets		(68,795	)		14,860			(195,723	)		98,552			(24,049	)		(65,297	)
Net Assets
Beginning of year	$	146,851		$	131,991		$	475,238		$	376,686		$	56,718		$	122,015
End of year(a)	$	78,056		$	146,851		$	279,515		$	475,238		$	32,669		$	56,718
Undistributed (Accumulated) Net Investment Income (Loss)	$	—		$	—		$	—		$	321		$	59		$	48

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

44

	Transamerica Premier						Transamerica Premier						Transamerica Premier
	Cash Reserve Fund						Institutional Bond Fund						Institutional Equity Fund
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007			2008			2007
Increase (Decrease) in Net Assets Operations:
Net investment income	$	2,127		$	4,196		$	54		$	54		$	755		$	198
Net realized gain (loss) on investments		(2	)		—			(24	)		(7	)		(14,594	)		4,116
Change in unrealized appreciation (depreciation) on investments		—			—			(23	)		2			(43,056	)		5,274
Net increase (decrease) in net assets resulting from operations		2,125			4,196			7			49			(56,895	)		9,588
Dividends / Distributions to Shareholders
From net investment income:
Institutional Class		—			—			(55	)		(55	)		(734	)		(96	)
Investor Class		(2,127	)		(4,196	)		—			—			—			—
From net realized gains on investments:
Institutional Class		—			—			—			—			(152	)		(4,056	)
Investor Class		—			—			—			—			—			—
Net decrease in net assets resulting from distributions		(2,127	)		(4,196	)		(55	)		(55	)		(886	)		(4,152	)
Net Fund Shares Transactions		(19,830	)		16,583			54			47			32,351			34,285
Net increase (decrease) in net assets		(19,832	)		16,583			6			41			(25,430	)		39,721
Net Assets
Beginning of year	$	89,417		$	72,834		$	1,108		$	1,067		$	98,169		$	58,448
End of year(a)	$	69,585		$	89,417		$	1,114		$	1,108		$	72,739		$	98,169
Undistributed (Accumulated) Net Investment Income (Loss)	$	—		$	—		$	(1	)	$	(1	)	$	126		$	105

	Transamerica Premier						Transamerica Premier
	Institutional Small Cap						Institutional Diversified
	Value Fund						Equity Fund
	Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007
Increase (Decrease) in Net Assets Operations:
Net investment income	$	177		$	15		$	4		$	3
Net realized gain (loss) on investments		(5,033	)		124			7			36
Change in unrealized appreciation (depreciation) on investments		(1,195	)		28			(315	)		86
Net increase (decrease) in net assets resulting from operations		(6,051	)		167			(304	)		125
Dividends / Distributions to Shareholders
From net investment income:
Institutional Class		(153	)		(46	)		(5	)		(3	)
From net realized gains on investments:
Institutional Class		(55	)		(49	)		(21	)		(29	)
Net decrease in net assets resulting from distributions		(208	)		(95	)		(26	)		(32	)
Net Fund Shares Transactions		8,421			2,151			28			32
Net increase (decrease) in net assets		2,162			2,223			(302	)		125
Net Assets
Beginning of year	$	2,897		$	674		$	738		$	613
End of year(a)	$	5,059		$	2,897		$	436		$	738
Undistributed Net Investment Income	$	8		$	2		$	—		$	—

(a) Includes undistributed (accumulated) net investment income (loss)

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

45

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period

	Transamerica Premier Diversified Equity Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	17.15		$	14.84		$	13.69		$	12.70		$	11.17
Investment Operations
Net investment income(a)		0.05			0.01			0.01			0.02			0.03
Net realized and unrealized gain (loss) on investments		(7.08	)		2.77			1.28			0.99			1.51
Total from investment operations		(7.03	)		2.78			1.29			1.01			1.54
Dividends / Distributions and Other to Shareholders
Net investment income		(0.02	)		—	(b)		—			(0.02	)		(0.01	)
Net realized gains on investments		(0.28	)		(0.47	)		(0.14	)		—			—
Total dividends / distributions		(0.30	)		(0.47	)		(0.14	)		(0.02	)		(0.01	)
Net Asset Value
End of year	$	9.82		$	17.15		$	14.84		$	13.69		$	12.70
Total Return(c)		(40.93	)%		18.68	%		9.42	%		7.93	%		13.81	%
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.15	%		1.15	%		1.15	%		1.10	%		1.20	%
Before reimbursement/fee waiver		1.29	%		1.15	%		1.15	%		1.31	%		1.47	%
Net investment income, after reimbursement/fee waiver		0.35	%		0.08	%		0.04	%		0.13	%		0.28	%
Portfolio turnover rate		44	%		29	%		36	%		35	%		30	%
Net assets End of Year (in thousands)	$	194,445		$	305,343		$	207,607		$	148,927		$	71,487

For a share outstanding throughout each period

	Transamerica Premier Equity Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	25.60		$	22.52		$	22.05		$	19.46		$	16.90
Investment Operations
Net investment income (loss)(a)		0.06			(0.03	)		(0.07	)		(0.08	)		(0.02	)
Net realized and unrealized gain (loss) on investments		(11.52	)		3.45			1.74			3.19			2.58
Total from investment operations		(11.46	)		3.42			1.67			3.11			2.56
Dividends / Distributions and Other to Shareholders
Net investment income		(0.05	)		—			—			—			—
Net realized gains on investments		(0.19	)		(0.34	)		(1.20	)		(0.52	)		—
Total dividends / distributions		(0.24	)		(0.34	)		(1.20	)		(0.52	)		—
Net Asset Value
End of year	$	13.90		$	25.60		$	22.52		$	22.05		$	19.46
Total Return(c)		(44.74	)%		15.19	%		7.54	%		15.96	%		15.15	%
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.15	%		1.15	%		1.15	%		1.09	%		1.29	%
Before reimbursement/fee waiver		1.30	%		1.15	%		1.15	%		1.09	%		1.29	%
Net investment income (loss), after reimbursement/fee waiver		0.29	%		(0.14	)%		(0.28	)%		(0.38	)%		(0.13	)%
Portfolio turnover rate		47	%		40	%		37	%		32	%		34	%
Net assets End of Year (in thousands)	$	507,636		$	1,046,412		$	570,680		$	423,181		$	179,454

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

46

For a share outstanding throughout each period

	Transamerica Premier Focus Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	23.64		$	19.65		$	18.59		$	16.01		$	13.87
Investment Operations
Net investment loss(a)		(0.10	)		(0.11	)		(0.11	)		(0.06	)		(0.07	)
Net realized and unrealized gain (loss) on investments		(9.65	)		4.11			1.17			2.64			2.21
Total from investment operations		(9.75	)		4.00			1.06			2.58			2.14
Dividends / Distributions and Other to Shareholders
Net realized gains on investments		(0.61	)		(0.01	)		—			—			—
Total dividends / distributions		(0.61	)		(0.01	)		—			—			—
Net Asset Value
End of year	$	13.28		$	23.64		$	19.65		$	18.59		$	16.01
Total Return(c)		(41.19	)%		20.35	%		5.70	%		16.12	%		15.43	%
Ratio and Supplemental Data
Expenses to average net assets		1.37	%		1.18	%		1.20	%		1.32	%		1.36	%
Net investment loss		(0.52	)%		(0.50	)%		(0.61	)%		(0.38	)%		(0.48	)%
Portfolio turnover rate		66	%		51	%		46	%		67	%		64	%
Net assets End of Year (in thousands)	$	50,834		$	95,372		$	87,200		$	111,705		$	92,565

For a share outstanding throughout each period

	Transamerica Premier Growth Opportunities Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	27.61		$	23.50		$	22.56		$	19.73		$	16.99
Investment Operations
Net investment loss(a)		(0.11	)		(0.14	)		(0.10	)		(0.05	)		(0.08	)
Net realized and unrealized gain (loss) on investments		(11.17	)		5.56			1.04			2.88			2.82
Total from investment operations		(11.28	)		5.42			0.94			2.83			2.74
Dividends / Distributions and Other to Shareholders
Net realized gains on investments		—			(1.31	)		—			—			—
Total dividends / distributions		—			(1.31	)		—			—			—
Net Asset Value
End of year	$	16.33		$	27.61		$	23.50		$	22.56		$	19.73
Total Return(c)		(40.85	)%		23.01	%		4.17	%		14.36	%		16.13	%
Ratio and Supplemental Data
Expenses to average net assets		1.38	%		1.17	%		1.17	%		1.31	%		1.36	%
Net investment loss		(0.50	)%		(0.52	)%		(0.43	)%		(0.24	)%		(0.44	)%
Portfolio turnover rate		56	%		77	%		64	%		52	%		37	%
Net assets End of Year (in thousands)	$	78,056		$	146,851		$	131,991		$	152,064		$	118,442

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

47

For a share outstanding throughout each period

	Transamerica Premier Balanced Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	27.14		$	25.24		$	23.63		$	22.60		$	20.22
Investment Operations
Net investment income (loss)(a)		0.39			0.33			0.25			0.26			(0.22	)
Net realized and unrealized gain (loss) on investments		(9.43	)		2.97			1.69			1.04			2.83
Total from investment operations		(9.04	)		3.30			1.94			1.30			2.61
Dividends / Distributions and Other to Shareholders
Net investment income		(0.39	)		(0.38	)		(0.19	)		(0.27	)		(0.23	)
Return of capital		(0.03	)		—			—			—			—
Net realized gains on investments		(0.67	)		(1.02	)		(0.14	)		—			—
Total dividends / distributions		(1.09	)		(1.40	)		(0.33	)		(0.27	)		(0.23	)
Net Asset Value
End of year	$	17.01		$	27.14		$	25.24		$	23.63		$	22.60
Total Return(c)		(33.27	)%		13.04	%		8.20	%		5.81	%		12.92	%
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		1.10	%		1.10	%		1.10	%		1.08	%		1.29	%
Before reimbursement/fee waiver		1.24	%		1.10	%		1.10	%		1.14	%		1.29	%
Net investment income (loss), after reimbursement/fee waiver		1.68	%		1.21	%		1.02	%		1.14	%		(1.04	)%
Portfolio turnover rate		69	%		58	%		45	%		53	%		47	%
Net assets End of Year (in thousands)	$	279,515		$	475,238		$	376,686		$	305,892		$	245,138

For a share outstanding throughout each period

	Transamerica Premier High Yield Bond Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	7.36		$	7.86		$	7.71		$	8.00		$	7.76
Investment Operations
Net investment income(a)		0.57			0.55			0.53			0.50			0.52
Net realized and unrealized gain (loss) on investments		(2.32	)		(0.50	)		0.14			(0.28	)		0.25
Total from investment operations		(1.75	)		0.05			0.67			0.22			0.77
Dividends / Distributions and Other to Shareholders
Net investment income		(0.58	)		(0.55	)		(0.52	)		(0.51	)		(0.53	)
Total dividends / distributions		(0.58	)		(0.55	)		(0.52	)		(0.51	)		(0.53	)
Net Asset Value
End of year	$	5.03		$	7.36		$	7.86		$	7.71		$	8.00
Total Return(c)		(25.19	)%		0.59	%		9.01	%		2.93	%		10.38	%
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Before reimbursement/fee waiver		1.37	%		1.32	%		1.19	%		1.34	%		1.43	%
Net investment income, after reimbursement/fee waiver		8.36	%		7.04	%		6.81	%		6.46	%		6.75	%
Portfolio turnover rate		82	%		89	%		127	%		93	%		152	%
Net assets End of Year (in thousands)	$	6,087		$	8,209		$	16,418		$	12,062		$	8,227

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

48

For a share outstanding throughout each period

	Transamerica Premier High Yield Bond Fund
	Institutional Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	7.29		$	7.79		$	7.65		$	7.95		$	7.70
Investment Operations
Net investment income(a)		0.57			0.57			0.55			0.52			0.54
Net realized and unrealized gain (loss) on investments		(2.30	)		(0.49	)		0.13			(0.29	)		0.26
Total from investment operations		(1.73	)		0.08			0.68			0.23			0.80
Dividends / Distributions and Other to Shareholders
Net investment income		(0.59	)		(0.58	)		(0.54	)		(0.53	)		(0.55	)
Total dividends / distributions		(0.59	)		(0.58	)		(0.54	)		(0.53	)		(0.55	)
Net Asset Value
End of year	$	4.97		$	7.29		$	7.79		$	7.65		$	7.95
Total Return(c)		(25.13	)%		0.86	%		9.23	%		3.08	%		10.88	%
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.65	%		0.65	%		0.64	%		0.65	%		0.63	%
Before reimbursement/fee waiver		0.65	%		0.66	%		0.64	%		0.70	%		0.63	%
Net investment income, after reimbursement/fee waiver		8.77	%		7.30	%		7.09	%		6.65	%		7.06	%
Portfolio turnover rate		82	%		89	%		127	%		93	%		152	%
Net assets End of Year (in thousands)	$	26,582		$	48,509		$	105,597		$	97,480		$	135,161

For a share outstanding throughout each period

	Transamerica Premier Cash Reserve Fund
	Investor Class
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004
Net Asset Value
Beginning of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Investment Operations
Net investment income(a)		0.03			0.05			0.05			0.03			0.01
Total from investment operations		0.03			0.05			0.05			0.03			0.01
Dividends / Distributions and Other to Shareholders
Net investment income		(0.03	)		(0.05	)		(0.05	)		(0.03	)		(0.01	)
Total dividends / distributions		(0.03	)		(0.05	)		(0.05	)		(0.03	)		(0.01	)
Net Asset Value
End of year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return(c)		2.57	%		5.12	%		4.91	%		3.06	%		1.16	%
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.26	%(d)		0.25	%		0.25	%		0.25	%		0.25	%
Before reimbursement/fee waiver		0.58	%(d)		0.60	%		0.68	%		0.74	%		0.63	%
Net investment income, after reimbursement/fee waiver		2.58	%		5.01	%		4.87	%		3.02	%		1.13	%
Net assets End of Year (in thousands)	$	69,585		$	89,417		$	72,834		$	39,405		$	37,038

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

49

For a share outstanding throughout each period

	Transamerica Premier Institutional Bond Fund
	Institutional Class
	Year Ended			Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005(e)
Net Asset Value
Beginning of year	$	9.36		$	9.41		$	9.75		$	10.00
Investment Operations
Net investment income(a)		0.45			0.47			0.46			0.38
Net realized and unrealized loss on investments		(0.40	)		(0.04	)		(0.10	)		(0.23	)
Total from investment operations		0.05			0.43			0.36			0.15
Dividends / Distributions and Other to Shareholders
Net investment income		(0.45	)		(0.48	)		(0.48	)		(0.40	)
Return of capital		—			—			(0.22	)		—
Total dividends / distributions		(0.45	)		(0.48	)		(0.70	)		(0.40	)
Net Asset Value
End of year	$	8.96		$	9.36		$	9.41		$	9.75
Total Return(c)		0.56	%		4.68	%		3.88	%		1.53	%(f)
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.45	%		0.45	%		0.45	%		0.45	%(g)
Before reimbursement/fee waiver		5.50	%		6.25	%		5.74	%		7.97	%(g)
Net investment income, after reimbursement/fee waiver		4.91	%		5.00	%		4.80	%		4.18	%(g)
Portfolio turnover rate		109	%		88	%		151	%		269	%(f)
Net assets End of Year (in thousands)	$	1,114		$	1,108		$	1,067		$	1,027

For a share outstanding throughout each period

	Transamerica Premier Institutional Equity Fund
	Institutional Class
	Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005			2004(h)
Net Asset Value
Beginning of year	$	13.45		$	12.21		$	11.41		$	11.11		$	10.00
Investment Operations
Net investment income (loss)(a)		0.08			0.04			0.01			(0.01	)		0.08
Net realized and unrealized gain (loss) on investments		(5.99	)		1.79			0.93			1.91			1.40
Total from investment operations		(5.91	)		1.83			0.94			1.90			1.48
Dividends / Distributions and Other to Shareholders
Net investment income		(0.07	)		(0.01	)		(0.01	)		—			(0.36	)
Net realized gains on investments		(0.02	)		(0.58	)		(0.13	)		(1.60	)		(0.01	)
Total dividends / distributions		(0.09	)		(0.59	)		(0.14	)		(1.60	)		(0.37	)
Net Asset Value
End of year	$	7.45		$	13.45		$	12.21		$	11.41		$	11.11
Total Return(c)		(43.92	)%		14.96	%		8.22	%		17.03	%		11.51	%(f)
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%(g)
Before reimbursement/fee waiver		0.85	%		0.90	%		0.93	%		1.05	%		0.90	%(g)
Net investment income (loss), after reimbursement/fee waiver		0.74	%		0.28	%		0.09	%		(0.06	)%		1.31	%(g)
Portfolio turnover rate		35	%		47	%		31	%		122	%		18	%(f)
Net assets End of Year (in thousands)	$	72,739		$	98,169		$	58,448		$	44,106		$	62,110

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

50

For a share outstanding throughout each period

	Transamerica Premier Institutional Small Cap Value Fund
	Institutional Class
	Year Ended			Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005(e)
Net Asset Value
Beginning of year	$	15.81		$	12.32		$	10.73		$	10.00
Investment Operations
Net investment income(a)		0.36			0.22			0.14			0.10
Net realized and unrealized gain (loss) on investments		(6.23	)		3.87			1.88			1.17
Total from investment operations		(5.87	)		4.09			2.02			1.27
Dividends / Distributions and Other to Shareholders
Net investment income		(0.28	)		(0.29	)		(0.12	)		(0.08	)
Net realized gains on investments		(0.10	)		(0.31	)		(0.31	)		(0.46	)
Total dividends / distributions		(0.38	)		(0.60	)		(0.43	)		(0.54	)
Net Asset Value
End of year	$	9.56		$	15.81		$	12.32		$	10.73
Total Return(c)		(37.01	)%		33.12	%		18.74	%		12.67	%(f)
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.85	%		0.85	%		0.85	%		0.85	%(g)
Before reimbursement/fee waiver		1.95	%		6.37	%		8.68	%		9.32	%(g)
Net investment income, after reimbursement/fee waiver		2.62	%		1.49	%		1.15	%		1.00	%(g)
Portfolio turnover rate		135	%		31	%		53	%		53	%(f)
Net assets End of Year (in thousands)	$	5,059		$	2,897		$	674		$	563

For a share outstanding throughout each period

	Transamerica Premier Institutional Diversified Equity Fund
	Institutional Class
	Year Ended			Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2006			2005(e)
Net Asset Value
Beginning of year	$	14.06		$	12.21		$	11.14		$	10.00
Investment Operations
Net investment income(a)		0.09			0.06			0.05			0.05
Net realized and unrealized gain (loss) on investments		(5.87	)		2.43			1.02			1.14
Total from investment operations		(5.78	)		2.49			1.07			1.19
Dividends / Distributions and Other to Shareholders
Net investment income		(0.09	)		(0.06	)		—			(0.05	)
Net realized gains on investments		(0.40	)		(0.58	)		—			—
Total dividends / distributions		(0.49	)		(0.64	)		—			(0.05	)
Net Asset Value
End of year	$	7.79		$	14.06		$	12.21		$	11.14
Total Return(c)		(41.06	)%		20.34	%		9.61	%		11.88	%(f)
Ratio and Supplemental Data
Expenses to average net assets
After reimbursement/fee waiver		0.75	%		0.75	%		0.75	%		0.75	%(g)
Before reimbursement/fee waiver		8.87	%		9.02	%		8.90	%		9.27	%(g)
Net investment income, after reimbursement/fee waiver		0.74	%		0.44	%		0.40	%		0.52	%(g)
Portfolio turnover rate		46	%		31	%		40	%		38	%(f)
Net assets End of Year (in thousands)	$	436		$	738		$	613		$	559

(a)	Calculation based on the average number of shares outstanding during the period.
(b)	Rounds to less than $(.01) per share.
(c)	Total Return represents aggregate total return for each period.
(d)	Inclusive of Money Market Guarantee expense. The impact of the Money Market Guarantee expense is 0.01%.
(e)	Commenced operations on February 1, 2005.
(f)	Not annualized.
(g)	Annualized.
(h)	Commenced operations on June 1, 2004.

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

51

NOTES TO FINANCIAL STATEMENTS
At December 31, 2008
(all amounts in thousands)

NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Transamerica Investors, Inc. (the “Company”) is a Maryland corporation registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end, management investment company. The Company is composed of eleven Funds: Transamerica Premier Diversified Equity Fund (the “Diversified Equity Fund”), Transamerica Premier Equity Fund (the “Equity Fund”), Transamerica Premier Focus Fund (the “Focus Fund”),Transamerica Premier Growth Opportunities Fund (the “Growth Opportunities Fund”), Transamerica Premier Balanced Fund (the “Balanced Fund”), Transamerica Premier High Yield Bond Fund (the “High Yield Bond Fund”), Transamerica Premier Cash Reserve Fund (the “Cash Reserve Fund”), Transamerica Premier Institutional Bond Fund (the “Institutional Bond Fund”), Transamerica Premier Institutional Equity Fund (the “Institutional Equity Fund”), Transamerica Premier Institutional Small Cap Value Fund (the “Institutional Small Cap Value Fund”), and Transamerica Premier Institutional Diversified Equity Fund (the “Institutional Diversified Equity Fund”), (individually, a “Fund” and collectively, the “Funds”). All of the Funds are diversified except the Focus Fund, which is non-diversified under the 1940 Act. For information on investment objectives and strategies, please refer to the Funds’ prospectus.

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

This report should be read in conjunction with the Funds’ current prospectus, which contains more complete information.

The following is a summary of significant accounting policies followed by each Fund in the preparation of its financial statements in accordance with accounting principles generally accepted in the United States.

Multiple Class Operations and Expenses

The Company currently offers two classes of shares, either an Investor and/or an Institutional class in each of the Funds, which reflect different expense levels. Income, non-class specific expenses, and realized and unrealized gains and losses, are allocated to each class based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses. Each share of each class of a Fund represents an identical legal interest in the investment of the Fund.

Valuation of Securities

Fund investments traded on an exchange are valued at the last sale price or closing price on the day of valuation on the exchange where the security is principally traded.

Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted sale bid price.

Debt securities are valued by independent pricing services; however, those that mature in sixty days or less are valued at amortized cost, which approximates fair value.

As permitted under Rule 2a-7 of the 1940 Act, the Cash Reserve Fund values its securities at amortized cost, which with accrued interest approximates fair value.

The Funds value their investment securities at fair value based upon procedures approved by the Board of Directors on days when significant events occur after the close of the principal exchange on which the securities are traded, and as a result, are expected to materially affect the value of investments. Other securities for which quotations are not readily available or whose values have been determined to be unreliable are valued at fair value as determined in good faith by the Transamerica Asset Management, Inc.’s (“TAM”) Valuation Committee, under the supervision of the Board of Directors.

Effective January 1, 2008, the Funds adopted the Financial Accounting Standards Board’s (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. Various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in the three broad levels listed below:

Level 1 — Quoted prices in active markets for identical securities.

Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 — Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risks associated with investing in those securities.

The following is a summary of the inputs used to value the Funds’ investments as of December 31, 2008:

	Investments in						Total
	Securities						Investments in
Fund	Level 1		Level 2		Level 3		Securities
Diversified Equity Fund	$	188,586	$	32,733	$	—	$	221,319
Equity Fund		504,878		53,829		—		558,707
Focus Fund		38,512		20,237		—		58,749
Growth Opportunities Fund		74,719		14,094		—		88,813
Balanced Fund		161,383		155,082		—		316,465
High Yield Bond Fund		—		33,735		—		33,735
Cash Reserve Fund		—		69,956		—		69,956
Institutional Bond Fund		—		1,155		—		1,155
Institutional Equity Fund		72,155		9,875		—		82,030
Institutional Small Cap Value Fund		4,951		411		—		5,362
Institutional Diversified Equity Fund		441		49		—		490

Management has determined that there were no securities classified as Level 3 securities at December 31, 2007 or December 31, 2008.

Pricing of Shares

The Funds price their shares on the basis of the net asset value of each class of shares of the Funds, which are determined as of the close of the New York Stock Exchange (“NYSE”) (generally 4:00 p.m. Eastern Time) on each day on which the NYSE is open for trading.

52

NOTES TO FINANCIAL STATEMENTS (continued)
At December 31, 2008
(all amounts in thousands)

NOTE 1. (continued)

Repurchase Agreements

The Funds are authorized to enter into repurchase agreements. The Funds, through their custodian, State Street Bank & Trust Company (“State Street”), receive delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 102% of the resale price. The Funds will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.

Commission recapture

Transamerica Investment Management, LLC is the only sub-advisor to the Funds, to the extent consistent with the best execution and usual commission rate policies and practices, have elected to place security transactions of the Funds with broker/dealers with which Transamerica Premier Funds 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 Funds. In no event will commissions paid by the Funds be used to pay expenses that would otherwise be borne by any other funds within Transamerica Premier Funds, or by any other party.

Recaptured commissions for the year ended December 31, 2008 are included in net realized gains in the Statements of Operations and are summarized as follows:

Fund	Commissions
Diversified Equity Fund	$	9
Equity Fund		34
Focus Fund		4
Growth Opportunities Fund		7
Balanced Fund		6
Institutional Equity Fund		4
Institutional Small Cap Value Fund		4
Institutional Diversified Equity Fund		—	*

* Amount rounds to less than $1.

Securities lending

The Fund may lend securities to qualified borrowers, with State Street acting as the Fund’s lending agent. The Fund earns negotiated lenders’ fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in the State Street Navigator Securities Lending Trust-Prime Portfolio. The Funds monitor the market value of securities loaned on a daily basis and require collateral in an amount at least equal to the value of the securities loaned. The value of loaned securities and related collateral outstanding at December 31, 2008 is shown in the Schedules of Investments and in the Statements of Assets and Liabilities.

Income from loaned securities on the Statements of Operations is net of fees earned by State Street for its services.

Real Estate Investment Trusts (“REITs”)

There are certain additional risks involved in investing in REIT’s. These include, but are not limited to, economic conditions, changes in zoning laws, real estate values, property taxes and interest rates. For Funds that invest primarily in real estate securities, the net asset value per share may fluctuate more widely than the value of shares of a fund that invests in a broad range of industries. Dividend income 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.

Securities Transactions and Investment Income

Securities transactions are recorded as of the trade date. Gains and losses on sales of securities are determined on the identified cost basis for both financial statement and federal income tax purposes. Interest income and operating expenses are recorded daily on an accrual basis. Discount is recorded on a daily basis using the effective yield method, except the Cash Reserve Fund, which recognizes discount and premium on a straight-line basis. Dividend income is recorded on the ex-dividend date.

Dividends and Distributions

Dividends from net investment income on shares of the Cash Reserve Fund are declared daily and paid monthly. Dividends from net investment income on shares of the High Yield Bond Fund and the Institutional Bond Fund are declared and paid monthly. Dividends from net investment income, if any, on shares of the Diversified Equity Fund, the Equity Fund, the Focus Fund, the Growth Opportunities Fund, the Balanced Fund, the Institutional Equity Fund, the Institutional Small Cap Value Fund and the Institutional Diversified Equity Fund are declared and paid annually. Each Fund distributes net realized capital gains, if any, annually. Dividends and distributions paid by each Fund are recorded on the ex-dividend date, except for the Cash Reserve Fund, which records dividends daily. Income and capital gain distributions are determined in accordance with income tax regulations that may differ from generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Funds and timing differences. Dividends from net investment income are determined on a class level. Capital gains distributions are determined on a Fund level.

The tax character of distributions paid to shareholders during December 31, 2008 and 2007 was as follows:

	2008								2007
			Long-								Long-
			Term		Return						Term		Return
	Ordinary		Capital		of				Ordinary		Capital		of
Fund	Income		Gain		Capital		Total		Income		Gain		Capital		Total
Diversified Equity Fund	$	1,198	$	4,681	$	—	$	5,879	$	26	$	8,118	$	—	$	8,144
Equity Fund		1,762		7,039		—		8,801		—		13,873		—		13,873
Focus Fund		982		1,267		—		2,249		—		38		—		38
Growth Opportunities Fund		—		—		—		—		—		6,662		—		6,662
Balanced Fund		7,031		9,871		410		17,312		6,341		16,991		—		23,332
High Yield Bond Fund		4,297		—		—		4,297		7,142		—		—		7,142
Cash Reserve Fund		2,127		—		—		2,127		4,196		—		—		4,196
Institutional Bond Fund		55		—		—		55		55		—		—		55
Institutional Equity Fund		734		152		—		886		96		4,056		—		4,152
Institutional Small Cap Value Fund		153		55		—		208		39		56		—		95
Institutional Diversified Equity Fund		5		21		—		26		3		29		—		32

53

NOTES TO FINANCIAL STATEMENTS (continued)
At December 31, 2008
(all amounts in thousands)

NOTE 1. (continued)

As of December 31, 2008, the components of accumulated earnings (deficit) on a tax basis were as follows:

									Total
	Undistributed		Accumulated			Net Unrealized			Accumulated
	Ordinary		Capital and			Appreciation			Earnings
Fund	Income		Other Losses			(Depreciation)*			(Deficit)**
Diversified Equity Fund	$	62	$	(3,176	)	$	(60,381	)	$	(63,495	)
Equity Fund		875		(133,621	)		(203,511	)		(336,257	)
Focus Fund		—		(4,494	)		(13,000	)		(17,494	)
Growth Opportunities Fund		—		(13,719	)		(17,821	)		(31,540	)
Balanced Fund		—		(5,032	)		(58,435	)		(63,467	)
High Yield Bond Fund		59		(28,476	)		(11,356	)		(39,773	)
Cash Reserve Fund		—		(2	)		—			(2	)
Institutional Bond Fund		—		(59	)		(25	)		(84	)
Institutional Equity Fund		126		(14,285	)		(27,451	)		(41,610	)
Institutional Small Cap Value Fund		8		(5,019	)		(1,063	)		(6,074	)
Institutional Diversified Equity Fund		—		(7	)		(118	)		(125	)

*	Differences between book basis and tax basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales, return of capital and distributions from real estate investment trusts.
**	As of December 31, 2008, no Fund had an Undistributed Long Term Capital Gain.

The following Funds have capital loss carryforwards which are available to affect future realized capital gains through the periods listed:

	Expiring		Expiring		Expiring		Expiring
	December		December		December		December
Fund	2009		2010		2011		2012
Diversified Equity Fund	$	—	$	—	$	—	$	—
Equity Fund		—		—		—		—
Focus Fund		—		—		—		—
Growth Opportunities Fund		—		—		—		—
Balanced Fund		—		—		—		—
High Yield Bond Fund		2,692		17,819		—		—
Cash Reserve Fund		—		—		—		—
Institutional Bond Fund		—		—		—		—
Institutional Equity Fund		—		—		—		—
Institutional Small Cap Value Fund		—		—		—		—
Institutional Diversified Equity Fund		—		—		—		—

	Expiring		Expiring		Expiring		Expiring
	December		December		December		December
Fund	2013		2014		2015		2016
Diversified Equity Fund	$	—	$	—	$	—	$	—
Equity Fund		—		—		—		72,431
Focus Fund		—		—		—		2,363
Growth Opportunities Fund		—		—		—		11,348
Balanced Fund		—		—		—		—
High Yield Bond Fund		—		—		441		6,195
Cash Reserve Fund		—		—		—		2
Institutional Bond Fund		6		19		7		17
Institutional Equity Fund		—		—		—		8,387
Institutional Small Cap Value Fund		—		—		—		4,025
Institutional Diversified Equity Fund		—		—		—		—

From November 1, 2008 to December 31, 2008, the following Funds realized capital losses. As permitted by tax regulations, the Funds have elected to defer these losses and treat them as arising in the year ending December 31, 2009.

Diversified Equity Fund	$	3,176
Equity Fund		61,190
Focus Fund		2,131
Growth Opportunities Fund		2,371
Balanced Fund		5,032
High Yield Bond Fund		1,329
Cash Reserve Fund		—
Institutional Bond Fund		10
Institutional Equity Fund		5,898
Institutional Small Cap Value Fund		994
Institutional Diversified Equity Fund		7

Temporary Guarantee Program

The Transamerica Premier Cash Reserve Fund has enrolled in the U.S. Treasury Department’s Temporary Guarantee Program for money market funds (the “Program”). Under the Program, the U.S. Treasury guarantees the $1.00 dollar per share value of fund shares outstanding as of September 19, 2008, subject to certain terms and limitations.

Only shareholders who held shares as of September 19, 2008 are eligible to participate in the guarantee. Those shareholders may purchase and redeem shares in their account during the period covered by the Program. However, the number of shares covered by the guarantee cannot exceed the number of shares held by the shareholder at the close of business on September 19, 2008. Thus, to the extent the overall value of a shareholder’s account increases after September 19, 2008, the amount of the increase will not be covered by the guarantee. If a Fund shareholder closes his or her Fund account, any future investment in the Fund will not be guaranteed.

The guarantee will be triggered if the market-based net asset value of the Fund is less than $0.995, unless promptly cured (a “Guarantee Event”). If a Guarantee Event were to occur, the Fund would be required to liquidate. Upon liquidation and subject to the availability of funds under the Program, eligible shareholders would be entitled to receive payments equal to $1.00 per “covered share.” The number of “covered shares” held by a shareholder would be equal to the lesser of (1) the number of shares owned by that shareholder on September 19, 2008 or (2) the number of shares owned by that shareholder on the date upon which the Guarantee Event occurs. The coverage provided for all money market funds participating in the Program (and, in turn, any amount available to the Fund and its eligible shareholders) is subject to an overall limit, currently approximately $50 billion.

The initial period of the Program covered a three month period from September 19, 2008 to December 18, 2008. On November 24, 2008, the Treasury Department announced an extension of the Program from December 19, 2008 through April 30, 2009 (the “Program Extension Period”). On December 5, 2008, the Board of Directors of the Fund elected to participate in the Program Extension Period. The Program may be later extended by the Treasury Department to terminate no later than September 18, 2009. If the Treasury Department extends the Program, the Board will consider whether to continue to participate. The Fund has paid to the Treasury a fee of 0.01% of its net assets as of September 19, 2008 to participate in the initial three month period of the Program and a fee of 0.015% of its net assets as of September 19, 2008 to participate in the Program Extension Period.

54

NOTES TO FINANCIAL STATEMENTS (continued)
At December 31, 2008
(all amounts in thousands)

NOTE 1. (continued)

These expenses are borne by the Fund without regard to any expense limitation agreement in effect for the Fund. Participation in any extension of the Program would require payment of an additional fee, although there can be no assurance that the Fund will elect to participate, or be eligible to participate, in any extension of the Program.

Federal Income Taxes

Each Fund intends to continue to qualify as a regulated investment company by complying with the requirements of the Internal Revenue Code applicable to regulated investment companies and by distributing to shareholders substantially all of its taxable income. Therefore, no federal income or excise tax provision is required to be paid by the Funds.

Net investment income distributions and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States. These differences are primarily due to differing treatments for items such as deferral of wash sales, return of capital, distributions from real estate investment trusts, premium amortization, net operating losses, capital loss carryforwards, and tax character of distributions paid. Permanent items identified in the year ended December 31, 2008, have been reclassified among components of net assets as follows:

				Undistributed
	Undistributed Net			Net Realized
	Investment			Gains and
Fund	Income			Losses			Paid-in Capital
Diversified Equity Fund	$	(423	)	$	423		$	—
Equity Fund		—			2			(2	)
Focus Fund		392			(452	)		60
Growth Opportunities Fund		561			19			(580	)
Balanced Fund		(811	)		510			301
High Yield Bond Fund		144			(165	)		21
Cash Reserve Fund		—			—			—
Institutional Bond Fund		1			(2	)		1
Institutional Equity Fund		—			—			—
Institutional Small Cap Value Fund		(18	)		17			1
Institutional Diversified Equity Fund		1			(1	)		—

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that reflect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES

The Company has an Investment Advisory Agreement on behalf of each Fund (the “Agreement”) with TAM, an affiliate of AEGON N.V., a Netherlands corporation. TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) and AUSA Holding Company (23%) (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE).

Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group. For its services to the Funds, TAM receives a monthly fee, based on an annual percentage of the average daily net assets of each Fund. The annual fees for the following Funds are:

Fund	Advisory Fee Rate
Diversified Equity Fund *
First $1 billion		0.75	%
Over $1 billion up to $2 billion		0.72
Over $2 billion		0.70
Equity Fund *
First $1 billion		0.85
Over $1 billion up to $2 billion		0.82
Over $2 billion		0.80
Focus Fund *
First $1 billion		0.85
Over $1 billion up to $2 billion		0.82
Over $2 billion		0.80
Growth Opportunities Fund *
First $1 billion		0.85
Over $1 billion up to $2 billion		0.82
Over $2 billion		0.80
Balanced Fund *
First $1 billion		0.75
Over $1 billion up to $2 billion		0.72
Over $2 billion		0.70
High Yield Bond Fund		0.53
Cash Reserve Fund		0.33
Institutional Bond Fund		0.43
Institutional Equity Fund		0.73
Institutional Small Cap Value Fund		0.83
Institutional Diversified Equity Fund		0.73

* Effective 3/1/2008.

See the Funds’ prospectuses for additional information.

TAM has agreed to waive its fees and assume any other operating expenses (other than certain extraordinary or nonrecurring expenses) which together exceed a specified percentage of the average daily net assets of that Fund.

These waivers and subsidies may be terminated at any time without notice.

The specified percentages are as follows:

	Investor			Institutional
Fund	Class			Class
Diversified Equity Fund		1.15	%		—
Equity Fund		1.15	%		—
Focus Fund		1.40	%		—
Growth Opportunities Fund		1.40	%		—
Balanced Fund		1.10	%		—
High Yield Bond Fund		0.90	%		0.65	%
Cash Reserve Fund		0.25	%		—
Institutional Bond Fund		—			0.45	%
Institutional Equity Fund		—			0.75	%
Institutional Small Cap Value Fund		—			0.85	%
Institutional Diversified Equity Fund		—			0.75	%

55

NOTES TO FINANCIAL STATEMENTS (continued)
At December 31, 2008
(all amounts in thousands)

NOTE 2. (continued)

Prior to March 1, 2008, the Focus and Growth Opportunities Funds paid 0.60% of the average daily net assets of each Fund. Additionally, TAM was entitled to be paid by the Equity Fund, Diversified Equity Fund, and Balanced Fund an annual advisory fee, which are accrued daily and paid monthly based on average net assets (“ANA”), which may vary between a minimum fee and a maximum fee as follows:

Fund	Minimum Fee	Maximum Fee
Diversified Equity Fund	0.50% of ANA	0.75% of the first $1 billion of ANA 0.72% of the next $1 billion of ANA 0.70% of ANA over $2 billion
Equity Fund	0.50% of ANA	0.85% of the first $1 billion of ANA 0.82% of the next $1 billion of ANA 0.80% of ANA over $2 billion
Balanced Fund	0.50% of ANA	0.75% of the first $1 billion of ANA 0.72% of the next $1 billion of ANA 0.70% of ANA over $2 billion

If payment of the maximum fee would result in a Fund’s annualized operating expenses in any month to exceed the applicable contractual expense limitation (“Expense Cap”) (shown below), the advisory fee payable to TAM will reduce from the maximum fee, but not below the minimum fee, in an amount sufficient to limit annualized Fund operating expenses to the Expense Cap. If payment of the minimum fee would result in Fund operating expenses exceeding the Expense Cap, TAM and/or its affiliates will remit to the Fund an amount sufficient to limit annualized Fund operating expenses to the Expense Cap.

The above Funds are subject to an Expense Cap applicable to each Fund’s annual total operating expenses as follows:

Fund	Expense Caps
Equity Fund		1.15	%
Diversified Equity Fund		1.15	%
Balanced Fund		1.10	%

The actual advisory fees paid for the year ended December 31, 2008 are as follows:

Fund	Advisory Fees
Equity Fund		0.83	%
Diversified Equity Fund		0.72	%
Balanced Fund		0.72	%

Transamerica Fund Services, Inc. (“TFS”) serves as administrator and transfer agent to the Funds. Transfer agent fees paid to TFS on behalf of the Funds for the year ended December 31, 2008 can be found in the Statement of Operations.

TFS is also an affiliate of AEGON N.V.

The Company entered into an Administrative Services Agreement with TFS for financial and legal fund administration services which include such items as compliance, expenses, financial statement and other reporting, distributions, tax returns, prospectus preparation, board of directors meeting support and other legal matters. The Company pays TFS the greater of an annual fee of 0.02% of average net assets of the Funds, or $385 allocated based pro rata on the average net assets of the Funds.

Transamerica Capital, Inc. (“TCI”) is the principal underwriter and distributor of the shares for each of the Funds. TCI is an affiliate of AEGON N.V.

Certain directors and officers of the Funds are also directors and officers of TAM, TFS, and TCI.

The aggregate fee expensed to all directors who are not affiliated persons of TAM for the year ended December 31, 2008 can be found in the Statements of Operations.

As of December 31, 2008, TAM and its affiliates held the following percentages of outstanding shares:

	Outstanding
Fund	Shares %
Diversified Equity Fund		3	%
Equity Fund		1	%
Focus Fund		21	%
Growth Opportunities Fund		18	%
Balanced Fund		7	%
High Yield Bond Fund		—
Cash Reserve Fund		14	%
Institutional Bond Fund		100	%
Institutional Equity Fund		—
Institutional Small Cap Value Fund		11	%
Institutional Diversified Equity Fund		100	%

Deferred Compensation Plan

Each eligible independent Fund Director may elect to participate in a non-qualified deferred compensation plan (the “Plan”) maintained by Transamerica Funds. Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in Class A shares of any series of Transamerica Funds, including the Funds, or investment options under Transamerica Partners Funds Group II, or funds of Transamerica Investors, Inc. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica Funds. The pro rata liability to the Funds of all deferred fees in the Plan as of December 31, 2008, amounted to the following:

Fund	Expenses
Diversified Equity Fund	$	1
Equity Fund		2
Focus Fund		—	*
Growth Opportunities Fund		—	*
Balanced Fund		1
High Yield Bond Fund		—	*
Cash Reserve Fund		—	*
Institutional Bond Fund		—	*
Institutional Equity Fund		—	*
Institutional Small Cap Value Fund		—	*
Institutional Diversified Equity Fund		—	*

* Amount rounds to less than $1.

NOTE 3. DISTRIBUTION PLANS

The 12b-1 plans of distribution and related distribution contracts require the Funds to pay distribution fees to TCI as compensation for its activities, not as reimbursement for specific expenses. For the Investor Shares, there is an annual 12b-1 distribution fee of 0.25% of the average daily net assets, except for the Cash Reserve Fund. On November 1, 1997, Transamerica Securities Sales Corporation (“TSSC”) and subsequently TCI agreed to waive the distribution fees until at least April 30, 2009 for the Cash Reserve Fund. The fee waivers may be terminated at any time without notice after April 30, 2009. For the Institutional Shares, there is no annual 12b-1 distribution fee. This fee is paid to securities dealers and financial intermediaries for providing personal services and account maintenance for their customers who hold such shares.

56

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2008
(all amounts in thousands)

NOTE 4. SECURITY TRANSACTIONS

The aggregate cost of purchases and proceeds from sales of securities, excluding short-term investments, for the year ended December 31, 2008 was as follows:

			U.S.				U.S.
			Government		Proceeds		Government
Fund	Purchases		Purchases		from Sales		Sales
Diversified Equity Fund	$	127,987	$	—	$	108,264	$	—
Equity Fund		410,229		—		419,188		—
Focus Fund		42,908		—		55,843		—
Growth Opportunities Fund		60,263		—		70,580		—
Balanced Fund		200,592		63,068		246,055		43,556
High Yield Bond Fund		37,464		—		46,784		—
Institutional Bond Fund		853		461		953		286
Institutional Equity Fund		66,908		—		33,946		—
Institutional Small Cap Value Fund		17,320		—		8,290		—
Institutional Diversified Equity Fund		298		—		267		—

NOTE 5. CAPITAL STOCK TRANSACTIONS

At December 31, 2008, there were 1.04 billion shares of $0.001 par value stock authorized. The tables below summarize the transactions in Fund shares for the years and class indicated.

The Diversified Equity Fund, Equity Fund, Focus Fund, and Growth Opportunities Fund have a short-term redemption fee in the Investor Class. Shares of these funds purchased on or after October 1, 2003 that are sold or exchanged within 90 days of the purchase are assessed a redemption fee of 2% of the value of the shares sold or exchanged. The redemption fees are included as a reduction to the amount of capital stock redeemed in the tables below. Due to the risk that the Funds and financial intermediaries may not detect all harmful trading activity, it is possible that shareholders may bear the risks associated with such activity.

Diversified Equity Fund Authorized Shares 50,000

	Year Ended						Year Ended
	December 31, 2008						December 31, 2007
Investor Class	Shares			Amount			Shares			Amount
Capital stock sold		4,769		$	62,498			5,364		$	86,550
Capital stock issued upon reinvestment of dividends and distributions		388			3,738			327			5,669
Capital stock redeemed		(3,147	)		(42,251	)		(1,880	)		(30,363	)
Redemption fees		N/A			6			N/A			6
Net increase		2,010		$	23,991			3,811		$	61,862

Equity Fund Authorized Shares 70,000

	Year Ended						Year Ended
	December 31, 2008						December 31, 2007
Investor Class	Shares			Amount			Shares			Amount
Capital stock sold		21,310		$	452,101			23,650		$	571,749
Capital stock issued upon reinvestment of dividends and distributions		629			8,591			521			13,481
Capital stock redeemed		(26,291	)		(484,339	)		(8,641	)		(207,949	)
Redemption fees		N/A			137			N/A			136
Net increase (decrease)		(4,352	)	$	(23,510	)		15,530		$	377,417

Focus Fund Authorized Shares 60,000

	Year Ended						Year Ended
	December 31, 2008						December 31, 2007
Investor Class	Shares			Amount			Shares			Amount
Capital stock sold		274		$	5,204			493		$	10,952
Capital stock issued upon reinvestment of dividends and distributions		170			2,226			2			38
Capital stock redeemed		(649	)		(11,740	)		(898	)		(19,038	)
Redemption fees		N/A			6			N/A			21
Net decrease		(205	)	$	(4,304	)		(403	)	$	(8,027	)

Growth Opportunities Fund Authorized Shares 60,000

	Year Ended						Year Ended
	December 31, 2008						December 31, 2007
Investor Class	Shares			Amount			Shares			Amount
Capital stock sold		429		$	9,811			773		$	20,943
Capital stock issued upon reinvestment of dividends and distributions		N/A			N/A			237			6,608
Capital stock redeemed		(968	)		(21,356	)		(1,308	)		(33,962	)
Redemption fees		N/A			19			N/A			5
Net decrease		(539	)	$	(11,526	)		(298	)	$	(6,406	)

Balanced Fund Authorized Shares 60,000

	Year Ended						Year Ended
	December 31, 2008						December 31, 2007
Investor Class	Shares			Amount			Shares			Amount
Capital stock sold		2,449		$	58,202			3,804		$	101,750
Capital stock issued upon reinvestment of dividends and distributions		1,025			17,266			849			23,224
Capital stock redeemed		(4,548	)		(98,887	)		(2,067	)		(55,449	)
Redemption fees		N/A			—			N/A			—
Net increase (decrease)		(1,074	)	$	(23,419	)		2,586		$	69,525

High Yield Bond Fund Authorized Shares 50,000

	Year Ended						Year Ended
	December 31, 2008						December 31, 2007
Institutional Class	Shares			Amount			Shares			Amount
Capital stock sold		405		$	2,637			869		$	6,742
Capital stock issued upon reinvestment of dividends and distributions		512			3,216			829			6,381
Capital stock redeemed		(2,228	)		(15,126	)		(8,600	)		(65,637	)
Redemption fees		N/A			—			N/A			—
Net decrease		(1,311	)	$	(9,273	)		(6,902	)	$	(52,514	)

	Year Ended						Year Ended
	December 31, 2008						December 31, 2007
Investor Class	Shares			Amount			Shares			Amount
Capital stock sold		5,708		$	39,338			1,884		$	14,476
Capital stock issued upon reinvestment of dividends and distributions		153			1,006			88			686
Capital stock redeemed		(5,766	)		(39,095	)		(2,945	)		(22,912	)
Redemption fees		N/A			—			N/A			—
Net increase (decrease)		95		$	1,249			(973	)	$	(7,750	)

57

NOTES TO FINANCIAL STATEMENTS (continued)
At December 31, 2008
(all amounts in thousands)

NOTE 5. (continued)

Cash Reserve Fund Authorized Shares 510,000

	Year Ended						Year Ended
	December 31, 2008						December 31, 2007
Investor Class	Shares			Amount			Shares			Amount
Capital stock sold		41,721		$	41,721			66,518		$	66,518
Capital stock issued upon reinvestment of dividends and distributions		2,078			2,078			4,108			4,108
Capital stock redeemed		(63,629	)		(63,629	)		(54,043	)		(54,043	)
Redemption fees		N/A			—			N/A			—
Net increase (decrease)		(19,830	)	$	(19,830	)		16,583		$	16,583

Institutional Bond Fund Authorized Shares 50,000

	Year Ended				Year Ended
	December 31, 2008				December 31, 2007
Institutional Class	Shares		Amount		Shares			Amount
Capital stock sold		—	$	—		59		$	551
Capital stock issued upon reinvestment of dividends and distributions		5		54		6			55
Capital stock redeemed		—		—		(60	)		(559	)
Redemption fees		N/A		—		N/A			—
Net increase		5	$	54		5		$	47

Institutional Equity Fund Authorized Shares 30,000

	Year Ended						Year Ended
	December 31, 2008						December 31, 2007
Institutional Class	Shares			Amount			Shares			Amount
Capital stock sold		6,435		$	69,905			3,569		$	47,757
Capital stock issued upon reinvestment of dividends and distributions		98			715			279			3,797
Capital stock redeemed		(4,072	)		(38,269	)		(1,332	)		(17,269	)
Redemption fees		N/A			—			N/A			—
Net increase		2,461		$	32,351			2,516		$	34,285

Institutional Small Cap Value Fund Authorized Shares 50,000

	Year Ended						Year Ended
	December 31, 2008						December 31, 2007
Institutional Class	Shares			Amount			Shares			Amount
Capital stock sold		1,129		$	18,008			124		$	2,092
Capital stock issued upon reinvestment of dividends and distributions		19			171			6			95
Capital stock redeemed		(802	)		(9,758	)		(2	)		(36	)
Redemption fees		N/A			—			N/A			—
Net increase		346		$	8,421			128		$	2,151

Institutional Diversified Equity Authorized Shares 50,000

	Year Ended				Year Ended
	December 31, 2008				December 31, 2007
Institutional Class	Shares		Amount		Shares		Amount
Capital stock sold		1	$	2		—		—
Capital stock issued upon reinvestment of dividends and distributions		3		26		2		32
Capital stock redeemed		—		—		—		—
Redemption fees		N/A		—		N/A		—
Net increase		4	$	28		2	$	32

NOTE 6. ACCOUNTING PRONOUNCEMENTS

In March 2008 the FASB issued its new Standard No. 161, “Disclosure About Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requries enhanced disclsoures about a Fund’s deriative and hedging activities. Management is currently evaluating the impact the adoption of FAS 161 will have on the Funds’ financial statement disclosures.

In July 2006, the FASB released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes (“FIN 48”), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 was effective during the first required financial reporting period for fiscal years beginning after December 15, 2006.

Implementation of FIN 48 requires Company management to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes federal and certain states. Open tax years are those that are open for exam by taxing authorities (i.e. the last three tax year ends, and the interim tax period since then). The Company has had no examinations in progress and none are expected at this time.

As of December 31, 2008, management has reviewed all open tax years and major jurisdictions and concluded the adoption of FIN 48 resulted in no impact to any Fund’s net assets or results of operations. There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. The Company is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months.

58

SUPPLEMENTAL TAX INFORMATION (unaudited)

For dividends paid during the year ended December 31, 2008, the Funds have designated the following percentages as qualified income:

	Qualified
	Dividend
Fund	Income %
Diversified Equity Fund		100	%
Balanced Fund		57	%
Equity Fund		100	%
Institutional Equity Fund		100	%
Institutional Small Cap Value Fund		43	%
Institutional Diversified Equity Fund		100	%

The percentage of ordinary dividends received during the year ended December 31, 2008 that qualify for the corporate dividend received deduction for the Funds were as follows:

	Dividends
	Received
Fund	Deduction %
Diversified Equity Fund		100	%
Balanced Fund		52	%
Equity Fund		100	%
Institutional Equity Fund		100	%
Institutional Small Cap Value Fund		32	%
Institutional Diversified Equity Fund		100	%

To determine the amount of dividends that qualify, corporate shareholders should multiply the total ordinary dividend received during the year ended December 31, 2008 by the percentage noted above.

For tax purposes, the following Funds have made Long-Term Capital Gain Designations for the year ended December 31, 2008:

	Long-Term
	Capital Gain
Fund	Designations
Diversified Equity Fund	$	4,681
Balanced Fund		9,871
Equity Fund		7,039
Focus Fund		1,267
Institutional Equity Fund		152
Institutional Small Cap Value Fund		55
Institutional Diversified Equity Fund		21

59

BOARD MEMBERS AND OFFICERS
(unaudited)

The Company is governed by a Board of Directors. Subject to the supervision of the Board of Directors, the assets of each portfolio are managed by an investment adviser and sub-adviser, and the respective portfolio managers. The Board of Directors is responsible for managing the business and affairs of the Company and oversees the operation of the Company by its officers. It also reviews the management of the portfolios’ assets by the investment adviser and sub-adviser. The Company’s portfolios are among the funds advised and sponsored by Transamerica Asset Management, Inc. (“TAM”) (collectively, the “Transamerica Asset Management Group”). The Transamerica Asset Management Group (“TAMG”) consists of Transamerica Funds, Transamerica Series Trust (“TST”), Transamerica Investors, Inc. (“TII”), 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 176 portfolios.

The mailing address of each Board Member and Officer is c/o Secretary of the Funds, 570 Carillon Parkway, St. Petersburg, Florida 33716. Information about Directors (also referred to as “Board Members”) and Officers of the Company is as follows:

		Term of
		Office and		Number of
		Length of		Funds in
		Time	Principal Occupation(s) During	Complex		Other
Name and Age	Position	Served*	Past 5 Years	Overseen		Directorships
INTERESTED BOARD MEMBER**
John K. Carter (1961)	Chairman, Board Member, President, and Chief Executive Officer	Since 2003	Chairman and Board Member (2008 — present), President (2007 — present), Chief Executive Officer (2006 — present), Vice President, Secretary and Chief Compliance Officer (2003 — 2006), TII; Chairman, Board Member, President and Chief Executive Officer, TPP, TPFG, TPFG II and TAAVF (2007 — present); Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Chief Compliance Officer, General Counsel and Secretary (1999 — 2006), Transamerica Funds and TST; Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (2002 — 2006), General Counsel, Secretary and Chief Compliance Officer (2002 — 2006), TIS; President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Director (2000 - present), General Counsel and Secretary (2000 — 2006), Chief Compliance Officer (2004 — 2006), TAM; President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Director (2001 — present), General Counsel and Secretary (2001 — 2006), Transamerica Fund Services, Inc. (“TFS”); Vice President, AFSG Securities Corporation (2001 — present); Senior Vice President, General Counsel and Secretary, Transamerica Index Funds, Inc. (“TIF”) (2002 — 2004); and Director (2008 — present), Vice President, Transamerica Investment Services, Inc. (“TISI”) (2003 — 2005) and Transamerica Investment Management, LLC (“TIM”) (2001 — 2005).		176	N/A

60

		Office and		Number of
		Length of		Funds in
		Time	Principal Occupation(s) During	Complex		Other
Name and Age	Position	Served*	Past 5 Years	Overseen		Directorships
INDEPENDENT BOARD MEMBERS***
Sandra N. Bane (1952)	Board Member	Since 2003	Retired, KPMG (1999 — present); and Board Member, TII (2003 — present), Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2008 — present).		176	Big 5 Sporting Goods (2002 — present); AGL Resources, Inc. (energy services holding company) (2008 — present)
Leo J. Hill (1956)	Lead Independent Board Member	Since 2008	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); TII (2008 — present); Owner and President, Prestige Automotive Group (2001 — 2005); President, L. J. Hill & Company (1999 — present); Market President, Nations Bank of Sun Coast Florida (1998 — 1999); 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).		176	N/A
Neal M. Jewell (1935)	Board Member	Since 2008	Retired (2004 — present); Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present); Board Member, Transamerica Funds, TST and TIS (2007 — present); Board Member, TII (2008 — present); and Independent Trustee, EAI Select Managers Equity Fund (a mutual fund) (1996 — 2004).		176	N/A
Russell A. Kimball, Jr. (1944)	Board Member	Since 2008	General Manager, Sheraton Sand Key Resort (1975 — present); Board Member, TST (1986 — present); Board Member, Transamerica Funds and TIS (2002 — present); TPP, TPFG, TPFG II and TAAVF (2007 — present); and Board Member, TII (2008 — present).		176	N/A

61

		Term of
		Office and		Number of
		Length of		Funds in
		Time	Principal Occupation(s) During	Complex		Other
Name and Age	Position	Served*	Past 5 Years	Overseen		Directorships
Eugene M. Mannella (1954)	Board Member	Since 2008	Chief Executive Officer, HedgeServ Corporation (hedge fund administration) (2008 — present); Self-employed consultant (2006 — present); President, ARAPAHO Partners LLC (limited purpose broker-dealer) (1998 — 2008); Board Member, TPP, TPFG, TPFG II and TAAVF (1994 — present); Board Member, Transamerica Funds, TIS and TST (2007 — present); Board Member, TII (2008 — present); and President, International Fund Services (alternative asset administration) (1993 — 2005).		176	N/A
Norman R. Nielsen (1939)	Board Member	Since 2008	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— present); Director, Iowa Health Systems (1994 — 2003); Director, Iowa Student Loan Service Corporation (2006 — present); Director, League for Innovation in the Community Colleges (1985 — 2005); Director, U.S. Bank (1987 — 2006); and President, Kirkwood Community College (1985 — 2005).		176	Buena Vista University Board of Trustees (2004 — present)
Joyce G. Norden (1939)	Board Member	Since 2008	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 — present); and Vice President, Institutional Advancement, Reconstructionist Rabbinical College (1996 — 2004).		176	Board of Governors, Reconstructionist Rabbinical College (2007 — present)

62

		Term of
		Office and		Number of
		Length of		Funds in
		Time	Principal Occupation(s) During	Complex		Other
Name and Age	Position	Served*	Past 5 Years	Overseen		Directorships
Patricia L. Sawyer (1950)	Board Member	Since 2008	Retired (2007 — present); President/Founder, Smith & Sawyer LLC (management consulting) (1989 — 2007); Board Member, Transamerica Funds and TST (2007 — present); Board Member, TIS (2007 — present); Board Member, TII (2008 — present); Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present); Vice President, American Express (1987 — 1989); Vice President, The Equitable (1986 — 1987); and Strategy Consultant, Booz, Allen & Hamilton (1982 — 1986).		176	N/A
John W. Waechter (1952)	Board Member	Since 2008	Attorney, Englander & Fischer, P.A. (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 — present); 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).		176	N/A

*	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 by-laws.
**	May be deemed an “interested person” (as that term is defined in the 1940 Act) of the Company because of his employment with TAM or an affiliate of TAM.
***	Independent Board Member means a Board Member who is not an “interested person” (as that term is defined under the 1940 Act) of the Company.

63

OFFICERS

		Term of Office
		and Length of	Principal Occupation(s) or
Name and Age	Position	Time Served*	Employment During Past 5 Years
John K. Carter (1961)	Chairman, Board Member, President, and Chief Executive Officer	Since 2003	See the table above.
Dennis P. Gallagher (1970)	Vice President, General Counsel and Secretary	Since 2006	Vice President, General Counsel and Secretary, TII, Transamerica Funds, TST and TIS (2006 — present); Vice President, General Counsel and Secretary, TPP, TPFG, TPFG II and TAAVF (2007 — present); Director, Senior Vice President, General Counsel and Secretary, TAM and TFS (2006 — present); Assistant Vice President, Transamerica Capital, Inc. (2007 — present); and Director, Deutsche Asset Management (1998 — 2006).
Joseph P. Carusone (1965)	Vice President, Treasurer and Principal Financial Officer	Since 2007	Vice President, Treasurer and Principal Financial Officer, Transamerica Funds, TST, TIS and TII (2007 — present); Vice President (2007 — present), Treasurer and Principal Financial Officer (2001 — present), TPP, TPFG, TPFG II and TAAVF; Senior Vice President, TAM and TFS (2007 — present); Senior Vice President (2008 — present), Vice President (2001 — 2008); Diversified Investment Advisors, Inc. (“DIA”); Director and President, Diversified Investors Securities Corp. (“DISC”) (2007 — present); Director, Transamerica Financial Life Insurance Company (“TFLIC”) (2004 — present); and Treasurer, Diversified Actuarial Services, Inc. (2002 — present).
Christopher A. Staples (1970)	Vice President and Chief Investment Officer	Since 2005	Vice President and Chief Investment Officer (2007 — present); Vice President — Investment Administration (2005 — 2007), TII; Vice President and Chief Investment Officer (2007 — present), Senior Vice President — Investment Management (2006 — 2007), Vice President — Investment Management (2005 — 2006), Transamerica Funds, TST and TIS; Vice President and Chief Investment Officer, TPP, TPFG, TPFG II and TAAVF (2007 — present); Director (2005 — present), Senior Vice President — Investment Management (2006 — present) and Chief Investment Officer (2007 — present), TAM; Director, TFS (2005 — present); and Assistant Vice President, Raymond James & Associates (1999 — 2004).

64

		Term of Office
		and Length of	Principal Occupation(s) or
Name and Age	Position	Time Served*	Employment During Past 5 Years
Rick B. Resnik (1967)	Vice President, Chief Compliance Officer and Conflicts of Interest Officer	Since 2008	Chief Compliance Officer, TPP, TPFG, TPFG II and TAAVF (1998 — present); Chief Compliance Officer, Transamerica Funds, TST, TIS and TII (2008 — present); Vice President and Conflicts of Interest Officer, TPP, TPFG, TPFG II, TAAVF, Transamerica Funds, TST, TIS and TII (2008 — present); Senior Vice President and Chief Compliance Officer, TAM (2008 — present); Senior Vice President, TFS (2008 — present); Director (2000 — present), Vice President and Chief Compliance Officer (1997 — present), DISC; and Assistant Vice President, TFLIC (1999 — present).
Robert A. DeVault Jr. (1965)	Assistant Treasurer	Since 2009	Assistant Treasurer, Transamerica Funds, TST, TII, TIS, TPP, TPFG, TPFG II and TAAVF (January 2009 — present); and Assistant Vice President, (2007 — present), Manager, Fund Administration (2002 — 2007), TFS.
Suzanne Valerio- Montemurro (1964)	Assistant Treasurer	Since 2007	Assistant Treasurer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (2007 — present); and
			Vice President, DIA (1998 — present).
Sarah L. Bertrand (1967)	Assistant Secretary	Since 2009	Assistant Secretary, Transamerica Funds, TST, TII, TIS, TPP, TPFG, TPFG II and TAAVF (January 2009 — present); Assistant Vice President and Manager, 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).
Timothy J. Bresnahan (1968)	Assistant Secretary	Since 2009	Assistant Secretary, Transamerica Funds, TST, TII, TIS, TPP, TPFG, TPFG II and TAAVF (January 2009 — present); Counsel, TAM (2008 — present); Counsel (contract), Massachusetts Financial Services, Inc. (2007); Assistant Counsel, BISYS Fund Services Ohio, Inc. (2005 — 2007); and Associate, Greenberg Traurig, P.A. (2004 — 2005).
Richard E. Shield, Jr. (1974)	Tax Officer	Since 2008	Tax Officer, Transamerica Funds, TST, TIS, TII, TPP, TPFG, TPFG II and TAAVF (2008 — present); Tax Manager, Jeffrey P. McClanathan, CPA (2006 — 2007) and Gregory, Sharer & Stuart (2005 — 2006); Tax Senior, Kirkland, Russ, Murphy & Tapp, P.A. (2003 — 2005); and Certified Public Accountant, Schultz, Chaipel & Co., LLP (1998 — 2003).

* Elected and serves at the pleasure of the Board of the Company. If an officer has held offices for different Funds for different periods of time, the earliest applicable date is shown.

65

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of
Transamerica Investors, Inc.

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Transamerica Investors, Inc. (comprising, respectively, Transamerica Premier Diversified Equity Fund, Transamerica Premier Equity Fund, Transamerica Premier Focus Fund, Transamerica Premier Growth Opportunities Fund, Transamerica Premier Balanced Fund, Transamerica Premier High Yield Bond Fund, Transamerica Premier Cash Reserve Fund, Transamerica Premier Institutional Bond Fund, Transamerica Premier Institutional Equity Fund, Transamerica Premier Institutional Small Cap Value Fund and Transamerica Premier Institutional Diversified Equity Fund) (the “Funds”), as of December 31, 2008, 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 periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

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 audit 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 Funds’ 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 Funds’ 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, 2008, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers 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 the aforementioned eleven Funds of Transamerica Investors, Inc., at December 31, 2008, 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 periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Los Angeles, California
February 24, 2009

66

Transamerica Premier Funds

Investment Adviser

Transamerica Asset Management, Inc.
570 Carillon Parkway
St. Petersburg, FL 33716

Distributor

Transamerica Capital, Inc.
4600 South Syracuse Street
Denver, CO 80237

Custodian

State Street Bank & Trust Company
200 Clarendon Street
Boston, MA 02116

Transfer Agent

Transamerica Fund Services, Inc.
570 Carillon Parkway
St. Petersburg, Florida 33716

PROXY VOTING POLICIES AND PROCEDURES

A description of the Transamerica Premier Funds’ proxy voting policies and procedures is available in the Statement of Additional Information of the Funds, available without charge upon request by calling 1-800-892-7587 (toll free) or on the Securities and Exchange Commission (SEC) website www.sec.gov.

In addition, the Funds are required to file SEC Form N-PX, with their complete proxy voting records for the 12 months ended June 30th no later than August 31st of each year. The Form is available without charge: (1) from the Funds, upon request by calling 1-800-892-7587; and (2) on the SEC’s website at www.sec.gov.

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarter of each fiscal year on Form N-Q which is available on the SEC website at www.sec.gov. The Funds’ Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER DOCUMENTS

Every year, we send shareholders informative materials such as the Transamerica Premier Funds Annual Report, the Transamerica Premier Funds Prospectus, and other required documents that keep you informed regarding your funds.

Transamerica Premier Funds will only send one piece per mailing address, a method that saves your funds money by reducing mailing and printing costs. We will continue to do this unless you tell us not to. To elect to receive individual mailings, simply call a Transamerica Premier Funds Customer Service Representative, toll free, at 1-800-892-7587, 8:00 a.m. to 7:00 p.m. Eastern Time, Monday - Friday. Your request will take effect within 30 days.

67

Transamerica Fund Services, Inc.
P.O. BOX 219427
Kansas City, MO 64121-9427

This report must be preceded or accompanied by a current prospectus that contains complete information about Transamerica Premier Funds including charges and expenses and other important facts. Investors should carefully consider their investment objectives and risks, along with a product’s charges and expenses, before investing. Please read the prospectus carefully before investing

This report is for the information of the shareholders of Transamerica Premier Funds.

Transamerica Capital, Inc., Distributor
1-800-89-ASK-US (1-800-892-7587)
www.transamericafunds.com
e-mail: PremierFunds@Transamerica.com

TPF 577-0209

EX-99.17.H

Semi-Annual Report
June 30, 2009

www.transamericafunds.com

Customer Service 1-800-89-ASK-US (1-800-892-7587)
P.O. Box 219427 • Kansas City, MO 64121-9427
Distributor: Transamerica Capital, Inc.

Dear Fellow Shareholder,

On behalf of Transamerica Premier 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 advisor in the future. We value the trust you have placed in us.

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

We believe it is important to recognize and understand current market conditions in order to provide a context for reading this report. During the past six months, markets have oscillated from weakness in conjunction with investors’ continuing concerns over the health of the economy to strength in conjunction with investor optimism of recovery and bargain hunting. The equity markets touched new lows in March, and then subsequently rallied sharply. The period ended in June with markets stuck in a trading range as investors began to question the timing and strength of an economic recovery as data was mixed and unemployment remained at multi-decade highs. As investors have become skeptical regarding an economic recovery, the U.S. dollar’s negative momentum has slowed from earlier in 2009, and the dollar ended the period in a trading range versus the Euro, British pound, and the yen. Oil prices have come off of their highs of the year in concert with moderating dollar weakness. The Federal Reserve continues to keep the federal funds rate in a range of 0%-0.25%. Investors have become somewhat skeptical of the impact of the government stimulus package, as the unemployment rate continues to climb and reached 9.5% in June. Bargain hunting, particularly in prior months, has led to year-to-date gains for particular equity and fixed-income sectors, including emerging market stocks, technology stocks, and high yield bonds. For the six months ending June 30, 2009, the Dow Jones Industrial Average returned -2.01%, the Standard & Poor’s 500 Index returned 3.16%, and the Barclay’s Capital Aggregate U.S. Bond Index returned 1.90%. Please keep in mind it is 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 advisor is a key resource to help you build a complete picture of your current and future financial needs. Financial advisors are familiar with the market’s history, including long-term returns and volatility of various asset classes. With your financial advisor, you can develop an investment program that incorporates factors such as your goals, your investment timeline, and your risk tolerance.

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

Sincerely,

John K. Carter President & Chief Executive Officer	Christopher A. Staples Vice President & Chief Investment Officer
Transamerica Premier Funds	Transamerica Premier Funds

Understanding Your Funds’ Expenses
(unaudited)
SHAREHOLDER EXPENSES

Fund shareholders may incur two types of costs: (1) transaction costs, including redemption fees; and (2) ongoing costs including management fees, 12b-1 distribution and service fees, and other fund expenses.

The following examples are intended to help you understand your ongoing costs (in dollars and cents) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The examples are based on an investment of $1,000 invested at January 1, 2009 and held for the entire period until June 30, 2009.

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 = $8.6), then multiply the result by the number in the appropriate column for your share class titled “Expenses Paid During Period” to estimate the expenses you paid on your account would increase the estimate of expenses you paid during the period and decrease your ending account value.

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 Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and 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. As in the case of the actual expenses you would have paid during the period and decrease the hypothetical ending account value.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Expenses” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.

Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the advisory and administrative fees such as fees and expenses of the trustees and their counsel, extraordinary expenses and interest expense.

			Actual Expenses				Hypothetical Expenses (b)
	Beginning		Ending Account		Expenses Paid		Ending Account		Expenses Paid		Annualized
Fund Name	Account Value		Value		During Period (a)		Value		During Period (a)		Expense Ratio
Transamerica Premier Balanced Fund Investor Class	$	1,000.00	$	1,082.90	$	5.68	$	1,019.34	$	5.51		1.10	%
Transamerica Premier Cash Reserve Fund Investor Class		1,000.00		1,002.20		1.49		1,023.31		1.51		0.30
Transamerica Premier Diversified Equity Fund Investor Class		1,000.00		1,104.90		6.00		1,019.09		5.76		1.15
Transamerica Premier Equity Fund Investor Class		1,000.00		1,077.70		5.92		1,019.09		5.76		1.15
Transamerica Premier Focus Fund Investor Class		1,000.00		1,170.90		7.54		1,017.85		7.00		1.40
Transamerica Premier Growth Opportunities Fund Investor Class		1,000.00		1,132.90		7.40		1,017.85		7.00		1.40
Transamerica Premier High Yield Bond Fund Investor Class		1,000.00		1,251.00		5.02		1,020.33		4.51		0.90
Institutional Class		1,000.00		1,253.30		3.58		1,021.62		3.21		0.64
Transamerica Premier Institutional Bond Fund Institutional Class		1,000.00		1,078.60		2.32		1,022.56		2.26		0.45
Transamerica Premier Institutional Diversified Equity Fund Institutional Class		1,000.00		1,059.00		3.83		1,021.08		3.76		0.75
Transamerica Premier Institutional Equity Fund Institutional Class		1,000.00		1,083.20		3.87		1,021.08		3.76		0.75
Transamerica Premier Institutional Small Cap Value Fund Institutional Class		1,000.00		1,187.20		4.61		1,020.58		4.26		0.85

(a)	Expenses are calculated using the Fund’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 (181 days), and divided by the number of days in the year (365 days).
(b)	5% return per year before expenses.

Transamerica Premier Funds		Semi-Annual Report 2009
	Page 3

Schedules of Investments Composition
At June 30, 2009
(the following charts summarize the Schedule of Investments of each Fund by asset type)
(unaudited)

Transamerica Premier Balanced Fund
Common Stocks	60.5	%
Corporate Debt Securities	21.9
U.S. Government Agency Obligations	10.7
Repurchase Agreement	2.8
Mortgage-Backed Securities	2.4
U.S. Government Obligations	1.9
Preferred Corporate Debt Security	0.4
Other Assets and Liabilities — Net	(0.6	)
Total	100.0	%

Transamerica Premier Cash Reserve Fund
Commercial Paper	78.8	%
Corporate Debt Securities	10.4
Certificates of Deposit	8.9
Repurchase Agreement	2.1
Other Assets and Liabilities — Net	(0.2	)
Total	100.0	%

Transamerica Premier Diversified Equity Fund
Common Stocks	94.7	%
Repurchase Agreement	5.3
Other Assets and Liabilities — Net	0.0	*
Total	100.0	%

Transamerica Premier Equity Fund
Common Stocks	93.9	%
Repurchase Agreement	6.1
Other Assets and Liabilities — Net	0.0	*
Total	100.0	%

Transamerica Premier Focus Fund
Common Stocks	84.8	%
Repurchase Agreement	19.4
Other Assets and Liabilities — Net	(4.2	)
Total	100.0	%

Transamerica Premier Growth Opportunities Fund
Common Stocks	95.8	%
Repurchase Agreement	3.1
Other Assets and Liabilities — Net	1.1
Total	100.0	%

Transamerica Premier High Yield Bond Fund
Corporate Debt Securities	93.5	%
Convertible Bonds	2.7
Repurchase Agreement	1.2
Convertible Preferred Stock	0.2
Other Assets and Liabilities — Net	2.4
Total	100.0	%

Transamerica Premier Institutional Bond Fund
Corporate Debt Securities	56.1	%
U.S. Government Agency Obligations	30.4
Mortgage-Backed Securities	6.5
U.S. Government Obligations	4.1
Repurchase Agreement	2.6
Preferred Corporate Debt Security	1.0
Municipal Government Obligation	0.7
Other Assets and Liabilities — Net	(1.4	)
Total	100.0	%

Transamerica Premier Institutional Diversified Equity Fund
Common Stocks	97.5	%
Repurchase Agreement	3.3
Other Assets and Liabilities — Net	(0.8	)
Total	100.0	%

Transamerica Premier Institutional Equity Fund
Common Stocks	97.3	%
Repurchase Agreement	2.5
Other Assets and Liabilities — Net	0.2
Total	100.0	%

Transamerica Premier Institutional Small Cap Value Fund
Common Stock	94.9	%
Repurchase Agreement	4.6
Other Assets and Liabilities — Net	0.5
Total	100.0	%

* Amount rounds to less than 0.05% or (0.05%).

Transamerica Premier Funds		Semi-Annual Report 2009
	Page 4

Transamerica Premier Balanced Fund

SCHEDULE OF INVESTMENTS
At June 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
COMMON STOCKS - 60.5%
Aerospace & Defense - 1.0%
Boeing Co.		65,000	$	2,763
Air Freight & Logistics - 1.7%
CH Robinson Worldwide, Inc.		82,000		4,276
Expeditors International of Washington, Inc.		20,000		667
Auto Components - 3.3%
BorgWarner, Inc.		140,000		4,782
Johnson Controls, Inc.		220,000		4,778
Biotechnology - 2.1%
Gilead Sciences, Inc. ‡		130,000		6,089
Capital Markets - 4.3%
Charles Schwab Corp.		400,000		7,016
T. Rowe Price Group, Inc.		118,829		4,952
Chemicals - 2.7%
Sigma-Aldrich Corp.		150,000		7,434
Communications Equipment - 2.5%
Qualcomm, Inc.		155,000		7,006
Computers & Peripherals - 3.0%
Apple, Inc. ‡		60,000		8,546
Construction & Engineering - 1.0%
Jacobs Engineering Group, Inc. ‡		64,000		2,694
Diversified Financial Services - 1.7%
JPMorgan Chase & Co.		145,000		4,946
Diversified Telecommunication Services - 2.4%
Verizon Communications, Inc.		220,000		6,761
Electronic Equipment & Instruments - 1.4%
Tyco Electronics, Ltd.		219,000		4,071
Food & Staples Retailing - 1.3%
Wal-Mart Stores, Inc.		75,000		3,633
Health Care Equipment & Supplies - 3.1%
Becton Dickinson & Co.		75,000		5,348
Covidien PLC		50,000		1,872
Varian Medical Systems, Inc. ‡		40,000		1,406
Industrial Conglomerates - 1.0%
General Electric Co.		230,000		2,696
Internet & Catalog Retail - 3.1%
Amazon.com, Inc. ‡		105,000		8,784
Internet Software & Services - 2.8%
Google, Inc. -Class A ‡		19,000		8,010
IT Services - 1.9%
Automatic Data Processing, Inc.		152,000		5,387
Machinery - 5.9%
Caterpillar, Inc.		85,000		2,808
Kennametal, Inc.		350,000		6,713
PACCAR, Inc.		230,000		7,477
Paper & Forest Products - 1.9%
Weyerhaeuser Co.		180,000		5,477
Real Estate Investment Trusts - 0.4%
Plum Creek Timber Co., Inc.		40,000		1,191
Road & Rail - 1.6%
Burlington Northern Santa Fe Corp.		60,000		4,412
Semiconductors & Semiconductor Equipment - 2.2%
Intel Corp.		380,000		6,289
Software - 6.5%
Adobe Systems, Inc. ‡		255,000		7,217
Intuit, Inc. ‡		135,000		3,802
Oracle Corp.		340,000		7,282
Trading Companies & Distributors - 1.7%
WW Grainger, Inc.		60,000		4,913
Total Common Stocks (cost $179,109)				171,498

	Principal		Value
U.S. GOVERNMENT OBLIGATIONS - 1.9%
U.S. Treasury Bond
3.50% 02/15/2039	$	2,120		1,833
U.S. Treasury Inflation Indexed Bond
1.75% 01/15/2028		641		605
2.50% 01/15/2029		1,341		1,425
U.S. Treasury Note
1.13% 06/30/2011		1,500		1,500
Total U.S. Government Obligations (cost $5,161)				5,363
U.S. GOVERNMENT AGENCY OBLIGATIONS - 10.7%
Fannie Mae
4.50% 07/25/2021		1,528		1,564
5.00% 04/25/2034		3,210		3,348
5.50% 04/01/2037 - 11/01/2038		5,177		5,352
5.78% 12/01/2036 *		1,895		1,995
Freddie Mac
5.00% 02/01/2024 - 01/01/2039		11,275		11,559
6.00% 12/01/2037		3,986		4,201
Ginnie Mae
4.50% 02/20/2037 *		2,275		2,320
Total U.S. Government Agency Obligations (cost $29,803)				30,339
MORTGAGE-BACKED SECURITIES - 2.4%
American Tower Trust
Series 2007-1A, Class AFX
5.42% 04/15/2037 144A		1,315		1,197
Crown Castle Towers LLC
Series 2006-1A, Class AFX
5.24% 11/15/2036 144A		1,778		1,707
Jefferies & Co., Inc.
Series 2009-R2, Class 2A
6.59% 12/26/2037 144A		598		527
Series 2009-R7, Class 10A3
6.00% 12/26/2036 144A		538		510
Series 2009-R7, Class 12A1
5.50% 08/26/2036 144A		610		537
Series 2009-R9, Class 1A1
5.84% 12/31/2049 144A		620		553
Small Business Administration CMBS Trust
Series 2006-1A, Class A
5.31% 11/15/2036 144A		1,770		1,655
Total Mortgage-Backed Securities (cost $6,837)				6,686
CORPORATE DEBT SECURITIES - 21.9%
Airlines - 0.5%
Continental Airlines, Inc.
7.49%, 10/02/2010		638		606
9.00%, 07/08/2016		360		360
Delta Air Lines, Inc.
7.57%, 11/18/2010		585		559

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

Transamerica Premier Funds		Semi-Annual Report 2009
	Page 5

Transamerica Premier Balanced Fund

SCHEDULE OF INVESTMENTS (continued)
At June 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Principal		Value
Auto Components - 0.5%
Johnson Controls, Inc.
5.25%, 01/15/2011	$	1,344	$	1,359
Beverages - 0.6%
Anheuser-Busch InBev Worldwide, Inc.
8.20%, 01/15/2039 144A		833		928
Bacardi, Ltd.
7.45%, 04/01/2014 144A		690		736
Capital Markets - 1.2%
Charles Schwab Corp.
4.95%, 06/01/2014		1,035		1,053
Goldman Sachs Group, Inc.
1.06%, 03/22/2016 *		1,230		1,042
Morgan Stanley
6.00%, 05/13/2014		1,230		1,245
Chemicals - 1.2%
Chevron Phillips Chemical Co. LLC
8.25%, 06/15/2019 144A		510		532
Cytec Industries, Inc.
8.95%, 07/01/2017		510		509
Dow Chemical Co.
8.55%, 05/15/2019		1,160		1,162
Nalco Co.
8.25%, 05/15/2017 144A		525		528
Yara International ASA
7.88%, 06/11/2019 144A		560		584
Commercial Banks - 1.4%
Barclays Bank PLC
7.70%, 04/25/2018 144A Ž		1,090		906
BB&T Corp.
6.85%, 04/30/2019		985		1,024
PNC Bank NA
6.00%, 12/07/2017		425		393
Wachovia Corp.
1.38%, 10/28/2015 *		1,445		1,137
ZFS Finance USA Trust II
6.45%, 06/15/2016 144A ■		690		524
Commercial Services & Supplies - 0.4%
Allied Waste North America, Inc.
6.50%, 11/15/2010		1,000		1,018
Construction Materials - 0.5%
Lafarge SA
6.15%, 07/15/2011		1,335		1,349
Consumer Finance - 0.6%
American Express Credit Corp.
1.71%, 05/27/2010 *		700		691
Discover Financial Services
1.17%, 06/11/2010 *		1,173		1,105
Containers & Packaging - 0.3%
Rexam PLC
6.75%, 06/01/2013 144A		980		949
Diversified Financial Services - 2.0%
Bank of America Corp.
0.91%, 06/15/2016 *		2,215		1,646
Bear Stearns Cos., Inc.
7.25%, 02/01/2018		1,111		1,171
Citigroup, Inc.
0.94%, 05/18/2011 *		1,100		1,040
Glencore Funding LLC
6.00%, 04/15/2014 144A		706		583
Harley-Davidson Funding Corp.
5.25%, 12/15/2012 144A		1,130		1,059
Pemex Finance, Ltd.
9.03%, 02/15/2011		378		404
Electronic Equipment & Instruments - 0.4%
Tyco Electronics Group SA
6.00%, 10/01/2012		1,125		1,105
Energy Equipment & Services - 0.9%
DCP Midstream LLC
9.75%, 03/15/2019 144A		628		700
NGPL Pipeco LLC
6.51%, 12/15/2012 144A		980		1,027
Weatherford International, Ltd.
7.00%, 03/15/2038		830		799
Food & Staples Retailing - 0.4%
Ingles Market, Inc.
8.88%, 05/15/2017 144A		550		542
Stater Brothers Holdings, Inc.
8.13%, 06/15/2012		650		640
Food Products - 0.4%
M-Foods Holdings, Inc.
9.75%, 10/01/2013 144A		688		662
Michael Foods, Inc.
8.00%, 11/15/2013		500		488
Gas Utilities - 0.3%
EQT Corp.
8.13%, 06/01/2019		770		824
Health Care Equipment & Supplies - 0.4%
Beckman Coulter, Inc.
7.00%, 06/01/2019		909		961
Hotels, Restaurants & Leisure - 0.4%
Host Hotels & Resorts, LP
7.00%, 08/15/2012		555		536
Royal Caribbean Cruises, Ltd.
8.75%, 02/02/2011		715		682
Household Durables - 0.4%
Whirlpool Corp.
8.00%, 05/01/2012		1,040		1,076
Insurance - 0.6%
MetLife, Inc.
5.38%, 12/15/2012		950		971
Oil Insurance, Ltd.
7.56%, 06/30/2011 144A ■ Ž		1,220		599
IT Services - 0.2%
Aramark Corp.
8.50%, 02/01/2015		600		582
Leisure Equipment & Products - 0.4%
Hasbro, Inc.
6.30%, 09/15/2017		1,153		1,123
Media - 0.4%
Time Warner Cable, Inc.
6.75%, 07/01/2018		1,220		1,271
Metals & Mining - 1.0%
ArcelorMittal
5.38%, 06/01/2013		1,380		1,321
Falconbridge, Ltd.
7.35%, 06/05/2012		540		537
Rio Tinto Finance USA, Ltd.
9.00%, 05/01/2019		975		1,084
Multi-Utilities - 0.7%
Black Hills Corp.
9.00%, 05/15/2014		550		565
Sempra Energy
9.80%, 02/15/2019		1,125		1,363

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

Transamerica Premier Funds		Semi-Annual Report 2009
	Page 6

Transamerica Premier Balanced Fund

SCHEDULE OF INVESTMENTS (continued)
At June 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Principal		Value
Office Electronics - 0.4%
Xerox Corp.
7.13%, 06/15/2010	$	1,195	$	1,234
Oil, Gas & Consumable Fuels - 1.8%
Energy Transfer Partners, LP
9.70%, 03/15/2019		805		924
Hess Corp.
8.13%, 02/15/2019		1,220		1,389
Husky Energy, Inc.
6.25%, 06/15/2012		1,025		1,058
PetroHawk Energy Corp.
9.13%, 07/15/2013		500		498
Teppco Partners, LP
7.00%, 06/01/2067 ■		500		375
Valero Logistics Operations, LP
6.88%, 07/15/2012		850		870
Paper & Forest Products - 0.4%
Weyerhaeuser Co.
6.75%, 03/15/2012		1,085		1,085
Pharmaceuticals - 0.3%
Allergan, Inc.
5.75%, 04/01/2016		925		912
Real Estate Investment Trusts - 1.5%
Healthcare Realty Trust, Inc.
8.13%, 05/01/2011		1,040		1,036
PPF Funding, Inc.
5.35%, 04/15/2012 144A		1,646		1,345
WEA Finance LLC / WCI Finance LLC
5.40%, 10/01/2012 144A		1,250		1,199
Weingarten Realty Investors
5.26%, 05/15/2012		1,000		887
Real Estate Management & Development - 0.4%
Post Apartment Homes, LP
5.45%, 06/01/2012		600		545
6.30%, 06/01/2013		537		483
Road & Rail - 0.2%
Hertz Corp.
8.88%, 01/01/2014		470		432
Specialty Retail - 0.4%
Staples, Inc.
9.75%, 01/15/2014		1,205		1,345
Tobacco - 0.2%
Lorillard Tobacco Co.
8.13%, 06/23/2019		485		501
Wireless Telecommunication Services - 0.2%
Centennial Communications Corp.
6.96%, 01/01/2013 *		500		498
Total Corporate Debt Securities (cost $61,507)				62,276
Preferred Corporate Debt Security - 0.4%
Rabobank Nederland NV
11.00%, 06/30/2019 144A ■ Ž		950		1,057
Total Preferred Corporate Debt Security (cost $1,000)
REPURCHASE AGREEMENT - 2.8%
State Street Repurchase Agreement
0.01%, dated 06/30/2009, to be repurchased at $7,813 on 07/01/2009 •		7,813		7,813
Total Repurchase Agreement (cost $7,813)
Total Investment Securities (cost $291,230) #				285,032
Other Assets and Liabilities — Net				(1,804	)
Net Assets			$	283,228

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
*	Floating or variable rate note. Rate is listed as of 06/30/2009.
Ž	The security has a perpetual maturity. The date shown is the next call date.
■	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 06/30/2009.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 0.61% to 4.72%, maturity dates ranging from 08/01/2034 to 08/25/2034, and with market values plus accrued interests of $7,970.
#	Aggregate cost for federal income tax purposes is $291,230. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $19,595 and $25,793, respectively. Net unrealized depreciation for tax purposes is $6,198.
DEFINITIONS:
144A	144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 06/30/2009, these securities aggregated $21,146, or 7.47%, of the Fund’s net assets.
CMBS	Commercial Mortgage-Backed Security
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

Transamerica Premier Funds		Semi-Annual Report 2009
	Page 7

Transamerica Premier Balanced Fund

SCHEDULE OF INVESTMENTS (continued)
At June 30, 2009
(all amounts in thousands)

VALUATION SUMMARY:

Investment Securities	Level 1		Level 2		Level 3		Total
Equities — Consumer Discretionary	$	20,216	$	—	$	—	$	20,216
Equities — Consumer Staples		3,633		—		—		3,633
Equities — Financials		18,105		—		—		18,105
Equities — Health Care		12,843		—		—		12,843
Equities — Industrials		39,419		—		—		39,419
Equities — Information Technology		57,610		—		—		57,610
Equities — Materials		12,911		—		—		12,911
Equities — Telecommunication Services		6,761		—		—		6,761
Fixed Income — Consumer Discretionary		—		6,369		—		6,369
Fixed Income — Consumer Staples		—		5,521		—		5,521
Fixed Income — Energy		—		7,639		—		7,639
Fixed Income — Financials		—		23,145		—		23,145
Fixed Income — Health Care		—		1,873		—		1,873
Fixed Income — Industrials		—		2,975		—		2,975
Fixed Income — Information Technology		—		2,921		—		2,921
Fixed Income — Materials		—		9,640		—		9,640
Fixed Income — Mortgage-Backed Security		—		6,686		—		6,686
Fixed Income — Telecommunication Services		—		498		—		498
Fixed Income — U.S. Government Agency Obligation		—		30,339		—		30,339
Fixed Income — U.S. Government Obligation		—		5,363		—		5,363
Fixed Income — Utilities		—		2,752		—		2,752
Cash & Cash Equivalent — Repurchase Agreement		—		7,813		—		7,813
Total	$	171,498	$	113,534	$	—	$	285,032

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

Transamerica Premier Funds Annual Report 2008

Page 8

Transamerica Premier Cash Reserve Fund

SCHEDULE OF INVESTMENTS
At June 30, 2009
(all amounts in thousands)
(unaudited)

	Principal		Value
COMMERCIAL PAPER - 78.8%
Capital Markets - 5.2%
State Street Corp.
0.20%, 07/07/2009	$	2,750	$	2,750
Chemicals - 4.7%
Ecolab, Inc.
0.27%, 09/02/2009 - 144A		2,500		2,499
Commercial Banks - 13.0%
Barclays Bank PLC
0.95%, 07/22/2009		1,200		1,199
Royal Bank of Scotland PLC
1.02%, 08/03/2009		3,100		3,098
UBS Finance Delaware LLC
0.36%, 08/13/2009		1,400		1,399
0.40%, 07/13/2009		1,100		1,100
Diversified Financial Services - 42.5%
Alpine Securitization
0.23%, 07/10/2009 - 144A		800		800
0.25%, 07/24/2009 - 144A		2,050		2,049
American Honda Finance Corp.
0.75%, 07/07/2009		1,100		1,100
0.85%, 07/09/2009		550		550
0.90%, 07/06/2009		1,500		1,500
Bank of America Corp.
0.36%, 09/10/2009		500		500
CAFCO LLC
0.85%, 07/22/2009 - 144A		1,700		1,699
Caterpillar Financial Services Corp.
0.30%, 07/13/2009		2,100		2,099
CIESCO LLC
0.30%, 07/14/2009 - 144A		1,200		1,200
MetLife Funding, Inc.
0.30%, 07/23/2009		1,200		1,200
Old Line Funding LLC
0.45%, 07/07/2009 - 144A		800		800
0.60%, 07/15/2009 - 144A		1,725		1,725
PACCAR Financial Corp.
0.17%, 07/14/2009		1,500		1,500
Rabobank USA Financial Corp.
0.42%, 07/15/2009		1,950		1,950
Ranger Funding Co. LLC
0.45%, 07/14/2009 - 144A		1,200		1,200
0.85%, 08/10/2009 - 144A		1,000		999
Wal-Mart Funding Corp.
0.27%, 07/06/2009 - 144A		1,500		1,500
Health Care Equipment & Supplies - 1.0%
Medtronic, Inc.
0.19%, 07/28/2009 - 144A		550		550
Industrial Conglomerates - 4.6%
General Electric Co.
0.25%, 08/24/2009 - 08/25/2009		2,400		2,399
Foreign Government Obligation - 7.8%
Province of Ontario Canada
0.30%, 07/08/2009		1,500		1,499
Province of Quebec Canada
0.23%, 08/21/2009 - 144A		1,400		1,400
0.29%, 07/09/2009 - 144A		1,200		1,200
Total Commercial Paper (cost $41,464)				41,464
CERTIFICATES OF DEPOSIT - 8.9%
Commercial Banks - 8.9%
Bank of Scotland PLC
0.56%, 09/09/2009		2,800		2,800
Barclays Bank PLC
0.45%, 08/13/2009		1,900		1,900
Total Certificate of Deposit (cost $4,700)				4,700
CORPORATE DEBT SECURITIES - 10.4%
Consumer Finance - 4.4%
Toyota Motor Credit Corp.
0.30%, 07/20/2009		1,200		1,199
0.31%, 08/04/2009		1,100		1,100
Diversified Financial Services - 6.0%
IBM International Group Capital LLC *
1.39%, 07/29/2009		3,200		3,201
Total Corporate Debt Security (cost $5,500)				5,500
REPURCHASE AGREEMENT - 2.1%
State Street Repurchase Agreement 0.01%, dated 6/30/2009, to be repurchased at $1,118 on 07/01/2009 •		1,118		1,118
Total Repurchase Agreements (cost $1,118)
Total Investment Securities (cost $52,782) #				52,782
Other Assets and Liabilities — Net				(82	)
Net Assets			$	52,700

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 9

Transamerica Premier Cash Reserve Fund

SCHEDULE OF INVESTMENTS (continued)
At June 30, 2009
(all amounts in thousands)
(unaudited)

NOTES TO SCHEDULE OF INVESTMENTS:
*	Floating or variable rate note. Rate is listed as of 06/30/2009.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 4.72% to 4.74%, maturity dates of 08/01/2034, and with market values plus accrued interests of $1,140.
#	Aggregate cost for federal income tax purposes is $52,782.

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 06/30/2009, these securities aggregated $17,621, or 33.45%, of the Fund’s net assets.
LLC	Limited Liability Company
PLC	Public Limited Company

VALUATION SUMMARY:

Investment Securities	Level 1		Level 2		Level 3		Total
Fixed Income — Financials	$	—	$	5,500	$	—	$	5,500
Cash & Cash Equivalent — Consumer Discretionary		—		550		—		550
Cash & Cash Equivalent — Financials		—		36,617		—		36,617
Cash & Cash Equivalent — Industrials		—		2,399		—		2,399
Cash & Cash Equivalent — Materials		—		2,499		—		2,499
Cash & Cash Equivalent — Repurchase Agreement		—		1,118		—		1,118
Cash & Cash Equivalent — Foreign Government Obligation		—		4,099		—		4,099
Total	$	—	$	52,782	$	—	$	52,782

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 10

Transamerica Premier Diversified Equity Fund

SCHEDULE OF INVESTMENTS
At June 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
COMMON STOCKS - 94.7%
Aerospace & Defense - 4.8%
Boeing Co.		22,500	$	956
Lockheed Martin Corp.		40,000		3,226
Precision Castparts Corp.		90,000		6,573
Air Freight & Logistics - 1.8%
CH Robinson Worldwide, Inc.		40,000		2,086
Expeditors International of Washington, Inc.		58,000		1,934
Auto Components - 6.2%
BorgWarner, Inc.		200,000		6,830
Johnson Controls, Inc.		330,000		7,168
Beverages - 1.0%
PepsiCo, Inc.		40,000		2,198
Capital Markets - 8.4%
BlackRock, Inc. -Class A		34,000		5,964
Charles Schwab Corp.		410,000		7,192
T. Rowe Price Group, Inc.		140,000		5,834
Chemicals - 6.1%
Ecolab, Inc.		128,000		4,991
Monsanto Co.		30,000		2,230
Sigma-Aldrich Corp.		135,000		6,690
Communications Equipment - 1.8%
Qualcomm, Inc.		90,000		4,068
Computers & Peripherals - 8.7%
Apple, Inc. ‡		62,000		8,831
Hewlett-Packard Co.		195,000		7,537
International Business Machines Corp.		32,000		3,341
Construction & Engineering - 1.6%
Jacobs Engineering Group, Inc. ‡		85,000		3,578
Diversified Financial Services - 3.6%
Bank of America Corp.		180,495		2,383
JPMorgan Chase & Co.		170,000		5,798
Diversified Telecommunication Services - 3.5%
Verizon Communications, Inc.		255,000		7,836
Electronic Equipment & Instruments - 1.4%
Tyco Electronics, Ltd.		165,000		3,067
Energy Equipment & Services - 0.7%
Schlumberger, Ltd.		30,000		1,623
Food & Staples Retailing - 1.6%
Costco Wholesale Corp.		78,000		3,565
Health Care Equipment & Supplies - 3.3%
Becton Dickinson & Co.		75,000		5,349
Covidien PLC		55,000		2,059
Internet & Catalog Retail - 3.9%
Amazon.com, Inc. ‡		105,000		8,784
Internet Software & Services - 2.4%
Google, Inc. -Class A ‡		13,000		5,481
Leisure Equipment & Products - 1.2%
Hasbro, Inc.		113,300		2,746
Life Sciences Tools & Services - 1.1%
Millipore Corp. ‡		35,000		2,457
Machinery - 7.4%
Caterpillar, Inc.		70,000		2,313
Donaldson Co., Inc.		100,000		3,464
Kennametal, Inc.		320,000		6,137
PACCAR, Inc.		155,000		5,039
Media - 3.6%
Dreamworks Animation SKG, Inc. -Class A ‡		80,000		2,207
Walt Disney Co.		250,000		5,833
Oil, Gas & Consumable Fuels - 1.0%
Anadarko Petroleum Corp.		49,000		2,224
Paper & Forest Products - 2.2%
Weyerhaeuser Co.		160,000		4,869
Real Estate Investment Trusts - 1.7%
Plum Creek Timber Co., Inc.		130,000		3,871
Road & Rail - 2.0%
Burlington Northern Santa Fe Corp.		60,000		4,412
Semiconductors & Semiconductor Equipment - 1.9%
Intel Corp.		255,000		4,220
Software - 7.3%
Activision Blizzard, Inc. ‡		160,000		2,021
Adobe Systems, Inc. ‡		192,000		5,433
Intuit, Inc. ‡		160,000		4,506
Oracle Corp.		215,000		4,605
Textiles, Apparel & Luxury Goods - 2.3%
Nike, Inc. -Class B		100,000		5,178
Trading Companies & Distributors - 2.2%
WW Grainger, Inc.		62,000		5,078
Total Common Stocks (cost $232,290)				213,785

	Principal		Value
REPURCHASE AGREEMENT - 5.3%
State Street Repurchase Agreement 0.01%, dated 06/30/2009, to be repurchased at $12,065 on 07/01/2009 •	$	12,065		12,065
Total Repurchase Agreement (cost $12,065)
Total Investment Securities (cost $244,355) #				225,850
Other Assets and Liabilities — Net				79
Net Assets			$	225,929

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 11

Transamerica Premier Diversified Equity Fund

SCHEDULE OF INVESTMENTS (continued)
At June 30, 2009
(all amounts in thousands)
(unaudited)

NOTES TO SCHEDULE OF INVESTMENTS:
‡	Non-income producing security.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 4.57% to 4.90%, maturity dates ranging from 09/01/2034 to 10/01/2034, and with market values plus accrued interests of $12,307.
#	Aggregate cost for federal income tax purposes is $244,355. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $11,466 and $29,971, respectively. Net unrealized depreciation for tax purposes is $18,505.

DEFINITION:

PLC Public Limited Company

VALUATION SUMMARY:

Investment Securities	Level 1		Level 2		Level 3		Total
Equities — Consumer Discretionary	$	40,805	$	—	$	—	$	40,805
Equities — Consumer Staples		5,763		—		—		5,763
Equities — Energy		3,847		—		—		3,847
Equities — Financials		31,042		—		—		31,042
Equities — Health Care		7,806		—		—		7,806
Equities — Industrials		44,796		—		—		44,796
Equities — Information Technology		53,110		—		—		53,110
Equities — Materials		18,780		—		—		18,780
Equities — Telecommunication Services		7,836		—		—		7,836
Cash & Cash Equivalent — Repurchase Agreement		—		12,065		—		12,065
Total	$	213,785	$	12,065	$	—	$	225,850

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 12

Transamerica Premier Equity Fund

SCHEDULE OF INVESTMENTS

At June 30, 2009

(all amounts except share amounts in thousands)

(unaudited)

	Shares		Value
COMMON STOCKS - 93.9%
Aerospace & Defense - 3.4%
Raytheon Co.		341,896	$	15,190
Air Freight & Logistics - 2.1%
Expeditors International of Washington, Inc.		279,733		9,326
Auto Components - 6.9%
BorgWarner, Inc.		414,715		14,163
Johnson Controls, Inc.		755,000		16,398
Biotechnology - 4.0%
Gilead Sciences, Inc. ‡		377,000		17,659
Capital Markets - 6.0%
Charles Schwab Corp.		738,000		12,945
T. Rowe Price Group, Inc.		331,239		13,802
Chemicals - 12.0%
Ecolab, Inc.		195,368		7,617
Monsanto Co.		50,000		3,717
Praxair, Inc.		301,000		21,393
Sigma-Aldrich Corp.		412,939		20,465
Commercial Banks - 3.5%
Wells Fargo & Co.		639,395		15,512
Communications Equipment - 7.3%
Cisco Systems, Inc. ‡		546,150		10,180
Qualcomm, Inc.		485,000		21,922
Computers & Peripherals - 9.1%
Apple, Inc. ‡		173,000		24,640
Hewlett-Packard Co.		119,885		4,634
International Business Machines Corp.		103,014		10,757
Construction & Engineering - 2.0%
Jacobs Engineering Group, Inc. ‡		213,131		8,971
Electrical Equipment - 1.9%
Emerson Electric Co.		254,867		8,258
Electronic Equipment & Instruments - 1.4%
Tyco Electronics, Ltd.		338,000		6,283
Food & Staples Retailing - 1.9%
Wal-Mart Stores, Inc.		172,235		8,343
Health Care Equipment & Supplies - 4.9%
Becton Dickinson & Co.		190,000		13,549
Varian Medical Systems, Inc. ‡		244,303		8,585
Industrial Conglomerates - 1.9%
General Electric Co.		735,000		8,614
Internet & Catalog Retail - 5.7%
Amazon.com, Inc. ‡		304,618		25,484
Internet Software & Services - 4.5%
Google, Inc. -Class A ‡		47,400		19,983
IT Services - 2.0%
Automatic Data Processing, Inc.		254,415		9,016
Machinery - 4.1%
Caterpillar, Inc.		192,782		6,370
PACCAR, Inc.		360,000		11,703
Media - 2.2%
Walt Disney Co.		417,382		9,738
Oil, Gas & Consumable Fuels - 1.0%
EOG Resources, Inc.		65,000		4,415
Pharmaceuticals - 1.7%
Teva Pharmaceutical Industries, Ltd. ADR		149,335		7,368
Road & Rail - 2.9%
Union Pacific Corp.		248,651		12,945
Software - 1.5%
Microsoft Corp.		276,000		6,561
Total Common Stocks (cost $461,315)				416,506

	Principal		Value
REPURCHASE AGREEMENT - 6.1%
State Street Repurchase Agreement 0.01%, dated 06/30/2009, to be repurchased at $27,020 on 07/01/2009 •	$	27,020		27,020
Total Repurchase Agreement (cost $27,020)
Total Investment Securities (cost $488,335) #				443,526
Other Assets and Liabilities — Net				7
Net Assets			$	443,533

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
•	Repurchase agreement is collateralized by U.S. Government Agency Obligations with interest rates ranging from 0.61% to 4.90%, maturity dates ranging from 08/25/2034 to 09/01/2034, and with market values plus accrued interests of $27,562.
#	Aggregate cost for federal income tax purposes is $488,335. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $20,767 and $65,576, respectively. Net unrealized depreciation for tax purposes is $44,809.

DEFINITION:

ADR     American Depositary Receipt

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 13

Transamerica Premier Equity Fund

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2009

(all amounts in thousands)

(unaudited)

VALUATION SUMMARY:

Investment Securities	Level 1		Level 2		Level 3		Total
Equities — Consumer Discretionary	$	65,782	$	—	$	—	$	65,782
Equities — Consumer Staples		8,343		—		—		8,343
Equities — Energy		4,415		—		—		4,415
Equities — Financials		42,259		—		—		42,259
Equities — Health Care		47,161		—		—		47,161
Equities — Industrials		81,377		—		—		81,377
Equities — Information Technology		113,977		—		—		113,977
Equities — Materials		53,192		—		—		53,192
Cash & Cash Equivalent — Repurchase Agreement		—		27,020		—		27,020
Total	$	416,506	$	27,020	$	—	$	443,526

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 14

Transamerica Premier Focus Fund

SCHEDULE OF INVESTMENTS

At June 30, 2009

(all amounts except share amounts in thousands)

(unaudited)

	Shares		Value
COMMON STOCKS - 84.8%
Air Freight & Logistics - 3.1%
CH Robinson Worldwide, Inc.		34,500	$	1,799
Beverages - 1.1%
Cia de Bebidas das Americas ADR		10,000		648
Biotechnology - 3.0%
Alexion Pharmaceuticals, Inc. ‡		23,300		958
Gilead Sciences, Inc. ‡		16,400		768
Chemicals - 1.5%
Praxair, Inc.		12,150		864
Commercial Banks - 1.0%
Wintrust Financial Corp.		35,800		576
Commercial Services & Supplies - 2.2%
Ritchie Bros. Auctioneers, Inc.		55,000		1,290
Communications Equipment - 11.5%
F5 Networks, Inc. ‡		23,800		823
Palm, Inc. ‡		70,000		1,160
Polycom, Inc. ‡		33,400		677
Qualcomm, Inc.		91,815		4,150
Computers & Peripherals - 6.3%
Apple, Inc. ‡		26,100		3,717
Diversified Consumer Services - 5.7%
Strayer Education, Inc.		15,535		3,388
Diversified Financial Services - 3.8%
JPMorgan Chase & Co.		65,750		2,242
Electronic Equipment & Instruments - 1.5%
FLIR Systems, Inc. ‡		39,000		880
Health Care Equipment & Supplies - 3.4%
Covidien PLC		54,000		2,022
Health Care Providers & Services - 1.0%
Nighthawk Radiology Holdings, Inc. ‡		158,930		588
Hotels, Restaurants & Leisure - 1.5%
Peet’s Coffee & Tea, Inc. ‡		34,000		857
Internet & Catalog Retail - 6.6%
Amazon.com, Inc. ‡		37,105		3,105
priceline.com, Inc. ‡		7,300		814
Internet Software & Services - 5.9%
Google, Inc. -Class A ‡		6,900		2,908
Valueclick, Inc. ‡		52,045		548
Leisure Equipment & Products - 1.2%
Hasbro, Inc.		28,500		691
Machinery - 2.8%
Kennametal, Inc.		26,670		512
PACCAR, Inc.		34,300		1,115
Oil, Gas & Consumable Fuels - 3.1%
Petroleo Brasileiro SA ADR		20,600		844
Petroleo Brasileiro SA -Class A ADR		29,300		978
Pharmaceuticals - 2.4%
Allergan, Inc.		30,300		1,442
Real Estate Investment Trusts - 1.2%
Host Hotels & Resorts, Inc.		87,106		731
Road & Rail - 3.1%
Kansas City Southern ‡		49,580		799
Landstar System, Inc.		29,420		1,056
Software - 7.6%
Activision Blizzard, Inc. ‡		169,695		2,143
Informatica Corp. ‡		86,800		1,492
Macrovision Solutions Corp. ‡		40,120		875
Textiles, Apparel & Luxury Goods - 1.6%
Nike, Inc. -Class B		18,700		968
Wireless Telecommunication Services - 2.7%
Sprint Nextel Corp. ‡		330,000		1,587
Total Common Stocks (cost $46,740)				50,015

	Principal		Value
REPURCHASE AGREEMENT - 19.4%
State Street Repurchase Agreement 0.01%, dated 06/30/2009, to be repurchased at $11,405 on 07/01/2009 •	$	11,405		11,405
Total Repurchase Agreement (cost $11,405)
Total Investment Securities (cost $58,145) #				61,420
Other Assets and Liabilities — Net				(2,500	)
Net Assets			$	58,920

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 0.61%, a maturity date of 08/25/2034, and with a market value plus accrued interest of $11,635.
#	Aggregate cost for federal income tax purposes is $58,145. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $8,521 and $5,246, respectively. Net unrealized appreciation for tax purposes is $3,275.

DEFINITIONS:

ADR     American Depositary Receipt

PLC     Public Limited Company

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 15

Transamerica Premier Focus Fund

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2009

(all amounts in thousands)

(unaudited)

VALUATION SUMMARY:

Investment Securities	Level 1		Level 2		Level 3		Total
Equities — Consumer Discretionary	$	11,845	$	—	$	—	$	11,845
Equities — Consumer Staples		648		—		—		648
Equities — Energy		1,822		—		—		1,822
Equities — Financials		3,549		—		—		3,549
Equities — Health Care		3,756		—		—		3,756
Equities — Industrials		6,571		—		—		6,571
Equities — Information Technology		19,373		—		—		19,373
Equities — Materials		864		—		—		864
Equities — Telecommunication Services		1,587		—		—		1,587
Cash & Cash Equivalent — Repurchase Agreement		—		11,405		—		11,405
Total	$	50,015	$	11,405	$	—	$	61,420

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 16

Transamerica Premier Growth Opportunities Fund

SCHEDULE OF INVESTMENTS

At June 30, 2009

(all amounts except share amounts in thousands)

	Shares		Value
COMMON STOCKS - 95.8%
Aerospace & Defense - 4.1%
Precision Castparts Corp.		41,000	$	2,994
Rockwell Collins, Inc.		10,900		455
Air Freight & Logistics - 3.4%
CH Robinson Worldwide, Inc.		55,300		2,884
Auto Components - 5.8%
BorgWarner, Inc.		109,700		3,746
Johnson Controls, Inc.		49,900		1,084
Capital Markets - 6.9%
Greenhill & Co., Inc.		35,660		2,575
T. Rowe Price Group, Inc.		75,157		3,132
Chemicals - 1.5%
Ecolab, Inc.		31,635		1,233
Communications Equipment - 6.5%
Juniper Networks, Inc. ‡		49,600		1,171
Palm, Inc. ‡		157,480		2,609
Polycom, Inc. ‡		84,300		1,709
Construction & Engineering - 1.1%
Jacobs Engineering Group, Inc. ‡		22,640		953
Construction Materials - 1.4%
Martin Marietta Materials, Inc.		14,800		1,167
Diversified Consumer Services - 2.4%
Strayer Education, Inc.		9,100		1,985
Diversified Financial Services - 1.1%
MSCI, Inc. -Class A ‡		39,500		965
Electrical Equipment - 1.8%
Cooper Industries, Ltd. -Class A		49,000		1,521
Electronic Equipment & Instruments - 1.7%
FLIR Systems, Inc. ‡		63,000		1,421
Health Care Equipment & Supplies - 4.8%
Idexx Laboratories, Inc. ‡		33,000		1,524
Intuitive Surgical, Inc. ‡		8,250		1,350
Masimo Corp. ‡		48,395		1,167
Health Care Technology - 1.3%
Cerner Corp. ‡		17,800		1,109
Hotels, Restaurants & Leisure - 1.1%
Burger King Holdings, Inc.		53,900		931
Internet & Catalog Retail - 2.1%
priceline.com, Inc. ‡		16,100		1,796
Life Sciences Tools & Services - 3.9%
Covance, Inc. ‡		23,700		1,166
Techne Corp.		33,000		2,106
Machinery - 8.2%
Donaldson Co., Inc.		36,780		1,274
Kennametal, Inc.		139,930		2,684
PACCAR, Inc.		86,500		2,813
Media - 0.5%
Dreamworks Animation SKG, Inc. -Class A ‡		14,800		408
Oil, Gas & Consumable Fuels - 1.7%
Range Resources Corp.		35,065		1,452
Pharmaceuticals - 1.0%
Allergan, Inc.		17,800		847
Professional Services - 1.6%
FTI Consulting, Inc. ‡		26,200		1,329
Real Estate Investment Trusts - 1.4%
Plum Creek Timber Co., Inc.		40,853		1,217
Real Estate Management & Development - 1.9%
St. Joe Co. ‡		60,400		1,600
Software - 16.1%
Activision Blizzard, Inc. ‡		244,500		3,089
Adobe Systems, Inc. ‡		107,500		3,042
Informatica Corp. ‡		97,500		1,676
Intuit, Inc. ‡		85,195		2,399
Macrovision Solutions Corp. ‡		32,000		698
Quality Systems, Inc.		16,000		911
Salesforce.com, Inc. ‡		41,900		1,599
Specialty Retail - 6.2%
Gap, Inc.		126,900		2,081
Guess, Inc.		124,400		3,207
Textiles, Apparel & Luxury Goods - 2.8%
Carter’s, Inc. ‡		73,600		1,811
Under Armour, Inc. -Class A ‡		23,770		532
Trading Companies & Distributors - 3.5%
WW Grainger, Inc.		35,722		2,925
Total Common Stocks (cost $82,139)				80,347

	Principal		Value
REPURCHASE AGREEMENT - 3.1%
State Street Repurchase Agreement 0.01%, dated 06/30/2009, to be repurchased at $2,630 on 07/01/2009 •	$	2,630		2,630
Total Repurchase Agreement (cost $2,630)
Total Investment Securities (cost $84,769) #				82,977
Other Assets and Liabilities — Net				962
Net Assets			$	83,939

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 0.61%, a maturity date of 08/25/2034, and with a market value plus accrued interest of $2,684.
#	Aggregate cost for federal income tax purposes is $84,769. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $6,814 and $8,606, respectively. Net unrealized depreciation for tax purposes is $1,792.

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 17

Transamerica Premier Growth Opportunities Fund

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2009

(all amounts in thousands)

(unaudited)

VALUATION SUMMARY:

Investment Securities	Level 1		Level 2		Level 3		Total
Equities — Consumer Discretionary	$	17,581	$	—	$	—	$	17,581
Equities — Energy		1,452		—		—		1,452
Equities — Financials		9,489		—		—		9,489
Equities — Health Care		9,269		—		—		9,269
Equities — Industrials		20,999		—		—		20,999
Equities — Information Technology		20,324		—		—		20,324
Equities — Materials		1,233		—		—		1,233
Cash & Cash Equivalent — Repurchase Agreement		—		2,630		—		2,630
Total	$	80,347	$	2,630	$	—	$	82,977

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 18

Transamerica Premier High Yield Bond Fund

SCHEDULE OF INVESTMENTS
At June 30, 2009
(all amounts in thousands)
(unaudited)

	Principal		Value
CORPORATE DEBT SECURITIES - 93.5%
Aerospace & Defense - 0.8%
Transdigm, Inc.
7.75%, 07/15/2014	$	750	$	713
Auto Components - 1.4%
Goodyear Tire & Rubber Co.
10.50%, 05/15/2016		1,000		1,010
Tenneco, Inc.
8.13%, 11/15/2015		270		213
Beverages - 0.4%
Beverages & More, Inc.
9.25%, 03/01/2012 -144A		500		380
Biotechnology - 1.1%
FMC Finance III SA
6.88%, 07/15/2017		1,000		930
Chemicals - 1.4%
Hexion U S Finance Corp.
9.75%, 11/15/2014		1,000		450
Momentive Performance Materials, Inc.
9.75%, 12/01/2014 Ђ		230		102
Nalco Co.
8.25%, 05/15/2017 -144A		690		694
Commercial Services & Supplies - 3.3%
Hertz Corp.
10.50%, 01/01/2016		1,000		890
Iron Mountain, Inc.
7.75%, 01/15/2015		1,000		960
Protection One Alarm Monitoring, Inc.
12.00%, 11/15/2011		1,000		995
Construction Materials - 1.0%
Texas Industries, Inc.
7.25%, 07/15/2013		1,000		898
Consumer Finance - 3.2%
Cardtronics, Inc.
9.25%, 08/15/2013 Ђ		1,000		895
Ford Motor Credit Co. LLC
7.88%, 06/15/2010		2,000		1,900
Containers & Packaging - 3.6%
Graham Packaging Co., Inc.
9.88%, 10/15/2014		1,000		930
Graphic Packaging International, Inc.
9.50%, 08/15/2013		2,000		1,910
Solo Cup Co.
10.50%, 11/01/2013 -144A		250		251
Diversified Consumer Services - 1.1%
Education Management LLC
8.75%, 06/01/2014		1,000		970
Diversified Financial Services - 6.0%
CDX North America High Yield
8.88%, 06/29/2013 -144A		880		801
GMAC, Inc.
6.88%, 09/15/2011 -144A		1,250		1,093
Icahn Enterprises, LP
8.13%, 06/01/2012		1,000		920
Kar Holdings, Inc.
10.00%, 05/01/2015		1,000		820
Qwest Corp.
8.38%, 05/01/2016 -144A		1,000		965
Sensus Metering Systems, Inc.
8.63%, 12/15/2013		600		564
Diversified Telecommunication Services - 2.9%
Intelsat Jackson Holdings, Ltd.
11.25%, 06/15/2016		1,000		1,020
Millicom International Cellular SA
10.00%, 12/01/2013 Ђ		500		507
Sprint Capital Corp.
7.63%, 01/30/2011		1,000		989
Electric Utilities - 0.6%
Energy Future Holdings Corp.
10.88%, 11/01/2017 Ђ		725		529
Electrical Equipment - 1.6%
Belden, Inc.
7.00%, 03/15/2017		1,000		885
9.25%, 06/15/2019 -144A		500		484
Energy Equipment & Services - 0.8%
Seitel, Inc.
9.75%, 02/15/2014		1,000		650
Food & Staples Retailing - 3.6%
Ingles Market, Inc.
8.88%, 05/15/2017 -144A		1,155		1,138
New Albertsons, Inc.
7.25%, 05/01/2013		1,000		960
Stater Brothers Holdings, Inc.
8.13%, 06/15/2012		1,000		985
Food Products - 3.5%
Dole Food Co., Inc.
13.88%, 03/15/2014 -144A		1,000		1,100
M-Foods Holdings, Inc.
9.75%, 10/01/2013 -144A		1,000		963
Michael Foods, Inc.
8.00%, 11/15/2013		1,000		975
Health Care Equipment & Supplies - 0.6%
Biomet, Inc.
10.00%, 10/15/2017		500		509
Health Care Providers & Services - 2.3%
Community Health Systems, Inc.
8.88%, 07/15/2015		1,000		980
HCA, Inc.
9.88%, 02/15/2017 -144A		1,000		1,010
Hotels, Restaurants & Leisure - 8.9%
Carrols Corp.
9.00%, 01/15/2013		1,000		938
Harrahs Operating Escrow LLC
11.25%, 06/01/2017 -144A		1,000		945
MGM Mirage, Inc.
8.38%, 02/01/2011		1,150		920
11.13%, 11/15/2017 -144A		500		530
Mohegan Tribal Gaming Authority
8.00%, 04/01/2012		1,650		1,254
Pokagon Gaming Authority
10.38%, 06/15/2014 -144A		250		245
Royal Caribbean Cruises, Ltd.
7.00%, 06/15/2013		1,000		874
Scientific Games International, Inc.
9.25%, 06/15/2019 -144A		500		500
Station Casinos, Inc.
6.63%, 03/15/2018		1,000		20

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 19

Transamerica Premier High Yield Bond Fund

SCHEDULE OF INVESTMENTS (continued)
At June 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Principal		Value
Hotels, Restaurants & Leisure (continued)
WMG Acqusition Corp.
9.50%, 06/15/2016 -144A	$	250	$	249
Wynn Las Vegas Capital Corp.
6.63%, 12/01/2014		1,500		1,289
Household Durables - 1.2%
Lennar Corp.
12.25%, 05/15/2017 -144A		1,000		1,050
Household Products - 0.7%
Sealy Mattress Co.
8.25%, 06/15/2014		750		617
Independent Power Producers & Energy Traders - 1.1%
AES Corp.
8.00%, 10/15/2017		1,000		930
Industrial Conglomerates - 1.0%
Susser Holdings LLC
10.63%, 12/15/2013		852		854
Machinery - 2.8%
Allison Transmission, Inc.
11.00%, 11/01/2015 -144A		1,000		790
Polypore, Inc.
8.75%, 05/15/2012		800		709
Titan International, Inc.
8.00%, 01/15/2012		1,000		905
Media - 2.2%
Kabel Deutschland GmbH
10.63%, 07/01/2014		1,000		1,031
Lamar Media Corp.
6.63%, 08/15/2015		1,000		875
Metals & Mining - 6.5%
Algoma Acquisition Corp.
9.88%, 06/15/2015 -144A		1,000		560
Falconbridge, Ltd.
7.35%, 06/05/2012		350		348
FMG Finance Property, Ltd.
10.63%, 09/01/2016 -144A		1,000		960
Freeport-McMoRan Copper & Gold, Inc.
8.38%, 04/01/2017		1,000		1,008
Steel Dynamics, Inc.
7.38%, 11/01/2012		650		616
Teck Resources, Ltd.
6.13%, 10/01/2035		1,500		1,100
10.75%, 05/15/2019 -144A		1,000		1,074
Multiline Retail - 1.8%
Dollar General Corp.
10.63%, 07/15/2015		1,000		1,080
Macy’s Retail Holdings, Inc.
5.35%, 03/15/2012		500		455
Oil, Gas & Consumable Fuels - 13.0%
Berry Petroleum Co.
10.25%, 06/01/2014		1,000		1,010
Chesapeake Energy Corp.
9.50%, 02/15/2015		1,250		1,259
Denbury Resources, Inc.
9.75%, 03/01/2016		500		514
Dynegy Holdings, Inc.
7.75%, 06/01/2019		2,000		1,557
Edison Mission Energy
7.20%, 05/15/2019		1,500		1,118
Enterprise Products Operating, LP
8.38%, 08/01/2066 §		1,000		805
Forest Oil Corp.
8.50%, 02/15/2014 -144A		1,500		1,474
Inergy, LP
8.75%, 03/01/2015 -144A		250		244
Markwest Energy Finance Corp.
8.50%, 07/15/2016		1,000		860
Opti Canada, Inc.
8.25%, 12/15/2014		1,500		990
PetroHawk Energy Corp.
9.13%, 07/15/2013		1,000		995
Petroleum Development Corp.
12.00%, 02/15/2018		500		420
Paper & Forest Products - 1.9%
Exopack Holding, Inc.
11.25%, 02/01/2014		2,000		1,640
Pipelines - 1.0%
Regency Energy Partners
9.38%, 06/01/2016 -144A		900		871
Professional Services - 0.8%
FTI Consulting, Inc.
7.75%, 10/01/2016		750		716
Real Estate Investment Trusts - 1.0%
Host Hotels & Resorts, LP
6.38%, 03/15/2015		1,000		865
Road & Rail - 1.4%
Kansas City Southern de Mexico SA de CV
7.63%, 12/01/2013		250		215
12.50%, 04/01/2016 -144A		1,000		1,015
Software - 1.6%
First Data Corp.
9.88%, 09/24/2015		2,000		1,420
Specialty Retail - 4.1%
Group 1 Automotive, Inc.
8.25%, 08/15/2013		1,000		845
Michaels Stores, Inc.
11.38%, 11/01/2016		1,450		950
Penske Auto Group, Inc.
7.75%, 12/15/2016		1,000		808
Sally Holdings LLC
9.25%, 11/15/2014		1,000		994
Tobacco - 1.2%
Alliance One International, Inc.
11.00%, 05/15/2012		1,000		1,045
Wireless Telecommunication Services - 2.1%
MetroPCS Wireless, Inc.
9.25%, 11/01/2014		1,000		993
Nextel Communications, Inc.
7.38%, 08/01/2015		1,000		798
Total Corporate Debt Securities (cost $80,541)				81,085

	Shares		Value
CONVERTIBLE PREFERRED STOCK - 0.2%
Road & Rail - 0.2%
Kansas City Southern 5.13% ▲		210		158
Total Convertible Preferred Stock (cost $179)

	Principal		Value
CONVERTIBLE BONDS - 2.7%
Diversified Telecommunication Services - 0.9%
Lucent Technologies, Inc.
2.88%, 06/15/2023 Ђ	$	850		806

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 20

Transamerica Premier High Yield Bond Fund

SCHEDULE OF INVESTMENTS
At June 30, 2009
(all amounts in thousands)
(unaudited)

	Principal		Value
Oil, Gas & Consumable Fuels - 0.8%
Quicksilver Resources, Inc.
1.88%, 11/01/2024	$	750	$	683
Software - 0.5%
Symantec Corp.
0.75%, 06/15/2011		400		403
Wireless Telecommunication Services - 0.5%
SBA Communications Corp.
1.88%, 05/01/2013 -144A		500		412
Total Convertible Bonds (cost $2,116)				2,304
REPURCHASE AGREEMENT - 1.2%
State Street Repurchase Agreement 0.01%, dated 06/30/2009, to be repurchased at $1,035 on 07/01/2009 •		1,035		1,035
Total Repurchase Agreement (cost $1,035)
Total Investment Securities (cost $83,871) #				84,582
Other Assets and Liabilities — Net				2,051
Net Assets			$	86,633

NOTES TO SCHEDULE OF INVESTMENTS:

▲	Rate shown reflects the yield at 06/30/2009.
Ђ	Step bond. Interest rate may increase or decrease as the credit rating changes.
§	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 06/30/2009.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 4.57%, a maturity date of 10/01/2034, and with a market value plus accrued interest of $1,056.
#	Aggregate cost for federal income tax purposes is $83,871. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $4,959 and $4,248, respectively. Net unrealized appreciation for tax purposes is $711.

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 06/30/2009, these securities aggregated $19,798, or 22.84%, of the Fund’s net assets.
CDX	A series of indices that track North American and emerging market credit derivative indices.
LLC	Limited Liability Company
LP	Limited Partnership

VALUATION SUMMARY:

Investment Securities	Level 1		Level 2		Level 3		Total
Equities — Industrials	$	—	$	158	$	—	$	158
Fixed Income — Consumer Discretionary		—		19,328		—		19,328
Fixed Income — Consumer Staples		—		9,939		—		9,939
Fixed Income — Energy		—		12,089		—		12,089
Fixed Income — Financials		—		7,858		—		7,858
Fixed Income — Health Care		—		2,419		—		2,419
Fixed Income — Industrials		—		10,047		—		10,047
Fixed Income — Information Technology		—		1,823		—		1,823
Fixed Income — Materials		—		11,840		—		11,840
Fixed Income — Telecommunication Services		—		5,469		—		5,469
Fixed Income — Utilities		—		2,577		—		2,577
Cash & Cash Equivalent — Repurchase Agreement		—		1,035		—		1,035
Total	$	—	$	84,582	$	—	$	84,582

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 21

Transamerica Premier Institutional Bond Fund

SCHEDULE OF INVESTMENTS
At June 30, 2009
(all amounts in thousands)
(unaudited)

	Principal		Value
U.S. GOVERNMENT OBLIGATIONS - 4.1%
U.S. Treasury Bond
3.50% 02/15/2039	$	23	$	19
U.S. Treasury Inflation Indexed Bond
1.75% 01/15/2028		10		10
2.50% 01/15/2029		15		16
U.S. Treasury Note
3.13% 05/15/2019		5		5
Total U.S. Government Obligations (cost $47)				50
U.S. GOVERNMENT AGENCY OBLIGATIONS - 30.4%
Fannie Mae
4.72% 10/01/2035 *		23		23
5.00% 08/01/2035 - 03/01/2039		79		80
5.50% 03/01/2018 - 01/01/2038		58		61
6.00% 08/01/2036		25		26
Freddie Mac
4.83% 06/01/2035 *		23		23
5.00% 06/01/2021 - 01/01/2039		86		89
5.50% 11/01/2018		10		10
5.53% 09/01/2037 *		24		25
6.00% 01/01/2037		32		33
Total U.S. Government Agency Obligations (cost $361)				370
MORTGAGE-BACKED SECURITIES - 6.5%
American Tower Trust
Series 2007-1A, Class C
5.62% 04/15/2037 144A		25		22
Crown Castle Towers LLC
Series 2006-1A, Class AFX
5.24% 11/15/2036 144A		10		10
Jefferies & Co., Inc.
Series 2009-R2, Class 2A
6.59% 12/26/2037 144A		7		6
Series 2009-R7, Class 10A3
6.00% 12/26/2036 144A		6		5
Series 2009-R7, Class 12A1
5.50% 08/26/2036 144A		7		6
Series 2009-R9, Class 1A1
5.84% 12/31/2049 144A		7		6
Small Business Administration CMBS Trust
Series 2006-1A, Class A
5.31% 11/15/2036 144A		25		24
Total Mortgage-Backed Securities (cost $81)				79
MUNICIPAL GOVERNMENT OBLIGATION - 0.7%
Metropolitan Transportation Authority
7.34% 11/15/2039		8		9
Total Municipal Government Obligation (cost $8)
CORPORATE DEBT SECURITIES - 56.1%
Aerospace & Defense - 1.1%
Boeing Co.
8.75%, 08/15/2021		10		13
Airlines - 1.1%
Continental Airlines, Inc.
7.49%, 10/02/2010		6		5
9.00%, 07/08/2016		4		4
Delta Air Lines, Inc.
7.57%, 11/18/2010		5		4
Auto Components - 1.1%
Johnson Controls, Inc.
5.25%, 01/15/2011		13		14
Automobiles - 0.8%
Daimler Finance North America LLC
8.00%, 06/15/2010		10		10
Beverages - 1.1%
Anheuser-Busch InBev Worldwide, Inc.
8.20%, 01/15/2039 144A		8		9
Bacardi, Ltd.
7.45%, 04/01/2014 144A		5		5
Capital Markets - 3.1%
Charles Schwab Corp.
4.95%, 06/01/2014		12		12
Goldman Sachs Group, Inc.
1.06%, 03/22/2016 *		15		13
Morgan Stanley
6.00%, 05/13/2014		13		13
Chemicals - 4.2%
Chevron Phillips Chemical Co. LLC
8.25%, 06/15/2019 144A		6		6
Cytec Industries, Inc.
8.95%, 07/01/2017		6		6
Dow Chemical Co.
8.55%, 05/15/2019		15		15
Lubrizol Corp.
8.88%, 02/01/2019		10		12
Nalco Co.
8.25%, 05/15/2017 144A		6		6
Yara International ASA
7.88%, 06/11/2019 144A		6		6
Commercial Banks - 4.7%
Barclays Bank PLC
7.70%, 04/25/2018 144A § Ž		15		12
BB&T Corp.
6.85%, 04/30/2019		11		11
Credit Suisse, Inc.
5.50%, 05/01/2014		12		12
Wachovia Corp.
1.38%, 10/28/2015 *		16		14
ZFS Finance USA Trust II
6.45%, 06/15/2016 144A §		10		8
Commercial Services & Supplies - 1.0%
Allied Waste North America, Inc.
6.50%, 11/15/2010		12		12
Construction Materials - 2.6%
Lafarge SA
6.15%, 07/15/2011		13		14
Martin Marietta Materials, Inc.
6.88%, 04/01/2011		13		14
Texas Industries, Inc.
7.25%, 07/15/2013		5		4
Consumer Finance - 0.7%
Discover Financial Services
1.17%, 06/11/2010 *		9		8
Containers & Packaging - 1.5%
Graphic Packaging International, Inc.
9.50%, 06/15/2017 144A		7		7

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 22

Transamerica Premier Institutional Bond Fund

SCHEDULE OF INVESTMENTS (continued)
At June 30, 2009
(all amounts in thousands)
(unaudited)

	Principal		Value
Containers & Packaging (continued)
Rexam PLC
6.75%, 06/01/2013 144A	$	11	$	11
Diversified Financial Services - 5.5%
Bank of America Corp.
0.91%, 06/15/2016 *		25		19
Bear Stearns Cos., Inc.
7.25%, 02/01/2018		11		12
Citigroup, Inc.
0.94%, 05/18/2011 *		15		14
Glencore Funding LLC
6.00%, 04/15/2014 144A		9		7
Harley-Davidson Funding Corp.
5.25%, 12/15/2012 144A		15		14
Electronic Equipment & Instruments - 1.1%
Tyco Electronics Group SA
6.00%, 10/01/2012		13		13
Energy Equipment & Services - 1.2%
DCP Midstream LLC
9.75%, 03/15/2019 144A		6		7
Weatherford International, Ltd.
7.00%, 03/15/2038		8		7
Food & Staples Retailing - 0.9%
Ingles Market, Inc.
8.88%, 05/15/2017 144A		6		6
Stater Brothers Holdings, Inc.
8.13%, 06/15/2012		5		5
Food Products - 1.1%
M-Foods Holdings, Inc.
9.75%, 10/01/2013 144A		8		8
Michael Foods, Inc.
8.00%, 11/15/2013		5		5
Gas Utilities - 0.8%
EQT Corp.
8.13%, 06/01/2019		9		10
Household Durables - 1.0%
Whirlpool Corp.
8.00%, 05/01/2012		12		12
Insurance - 1.6%
MetLife, Inc.
5.38%, 12/15/2012		11		12
Oil Insurance, Ltd.
7.56%, 06/30/2011 144A § ž		15		7
IT Services - 0.4%
Aramark Corp.
8.50%, 02/01/2015		5		5
Leisure Equipment & Products - 1.1%
Hasbro, Inc.
6.30%, 09/15/2017		13		13
Media - 0.8%
Time Warner Cable, Inc.
6.75%, 07/01/2018		10		10
Metals & Mining - 3.5%
Anglo American Capital PLC
9.38%, 04/08/2019 144A		11		12
ArcelorMittal
5.38%, 06/01/2013		15		14
Falconbridge, Ltd.
7.35%, 06/05/2012		6		6
Rio Tinto Finance USA, Ltd.
9.00%, 05/01/2019		10		11
Multi-Utilities - 1.5%
Black Hills Corp.
9.00%, 05/15/2014		6		6
Sempra Energy
9.80%, 02/15/2019		10		12
Oil, Gas & Consumable Fuels - 4.1%
Energy Transfer Partners, LP
9.70%, 03/15/2019		8		9
Hess Corp.
8.13%, 02/15/2019		12		15
Husky Energy, Inc.
6.25%, 06/15/2012		12		12
PetroHawk Energy Corp.
9.13%, 07/15/2013		5		5
Talisman Energy, Inc.
7.75%, 06/01/2019		9		10
Paper & Forest Products - 1.7%
Celulosa Arauco y Constitucion SA
8.63%, 08/15/2010		10		10
Weyerhaeuser Co.
6.75%, 03/15/2012		11		11
Real Estate Investment Trusts - 4.0%
BRE Properties, Inc.
5.75%, 09/01/2009		10		10
Healthcare Realty Trust, Inc.
8.13%, 05/01/2011		12		12
Host Hotels & Resorts, Inc.
7.13%, 11/01/2013		5		5
PPF Funding, Inc.
5.35%, 04/15/2012 144A		15		11
WEA Finance LLC / WCI Finance LLC
5.40%, 10/01/2012 144A		11		11
Real Estate Management & Development - 0.7%
Post Apartment Homes, LP
6.30%, 06/01/2013		10		9
Road & Rail - 0.4%
Hertz Corp.
8.88%, 01/01/2014		5		5
Specialty Retail - 1.2%
Staples, Inc.
9.75%, 01/15/2014		12		14
Tobacco - 0.5%
Lorillard Tobacco Co.
8.13%, 06/23/2019		6		6
Total Corporate Debt Securities (cost $663)				682
Preferred Corporate Debt Security - 1.0%
Rabobank Nederland NV
11.00%, 06/30/2019 144A § Ž		11		12
Total Preferred Corporate Debt Security (cost $12)
REPURCHASE AGREEMENT - 2.6%
State Street Repurchase Agreement 0.01%, dated 06/30/2009, to be repurchased at $32 on 07/01/2009 •		32		32
Total Repurchase Agreement (cost $32)
Total Investment Securities (cost $1,204) #				1,234
Other Assets and Liabilities — Net				(17	)
Net Assets			$	1,217

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 23

Transamerica Premier Institutional Bond Fund

SCHEDULE OF INVESTMENTS (continued)
At June 30, 2009
(all amounts in thousands)
(unaudited)

NOTES TO SCHEDULE OF INVESTMENTS:

*	Floating or variable rate note. Rate is listed as of 06/30/2009.
Ž	The security has a perpetual maturity. The date shown is the next call date.
§	Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of 06/30/2009.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 4.90%, a maturity date of 09/01/2034, and with a market value plus accrued interest of $34.
#	Aggregate cost for federal income tax purposes is $1,204. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $46 and $16, respectively. Net unrealized appreciation for tax purposes is $30.

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 06/30/2009, these securities aggregated $244, or 20.16%, of the Fund’s net assets.
CMBS	Commercial Mortgage-Backed Security
LLC	Limited Liability Company
LP	Limited Partnership
PLC	Public Limited Company

VALUATION SUMMARY:

Investment Securities	Level 1		Level 2		Level 3		Total
Fixed Income — Consumer Discretionary	$	—	$	60	$	—	$	60
Fixed Income — Consumer Staples		—		57		—		57
Fixed Income — Energy		—		65		—		65
Fixed Income — Financials		—		258		—		258
Fixed Income — Industrials		—		64		—		64
Fixed Income — Information Technology		—		18		—		18
Fixed Income — Materials		—		144		—		144
Fixed Income — Mortgage-Backed Security		—		79		—		79
Fixed Income — Municipal Government Obligation		—		9		—		9
Fixed Income — U.S. Government Agency Obligation		—		370		—		370
Fixed Income — U.S. Government Obligation		—		50		—		50
Fixed Income — Utilities		—		28		—		28
Cash & Cash Equivalent — Repurchase Agreement		—		32		—		32
Total	$	—	$	1,234	$	—	$	1,234

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 24

Transamerica Premier Institutional Diversified Equity Fund

SCHEDULE OF INVESTMENTS
At June 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
COMMON STOCKS - 97.5%
Aerospace & Defense - 4.6%
Boeing Co.		168	$	7
Lockheed Martin Corp.		289		23
Precision Castparts Corp.		711		52
Air Freight & Logistics - 1.8%
CH Robinson Worldwide, Inc.		330		17
Expeditors International of Washington, Inc.		442		15
Auto Components - 6.8%
BorgWarner, Inc.		1,885		65
Johnson Controls, Inc.		2,550		55
Beverages - 1.1%
PepsiCo, Inc.		340		19
Capital Markets - 8.8%
BlackRock, Inc. -Class A		330		59
Charles Schwab Corp.		3,210		56
T. Rowe Price Group, Inc.		1,060		44
Chemicals - 6.2%
Ecolab, Inc.		980		38
Monsanto Co.		239		18
Sigma-Aldrich Corp.		1,110		55
Communications Equipment - 2.0%
Qualcomm, Inc.		775		35
Computers & Peripherals - 8.8%
Apple, Inc. ‡		508		72
Hewlett-Packard Co.		1,523		59
International Business Machines Corp.		255		27
Construction & Engineering - 1.6%
Jacobs Engineering Group, Inc. ‡		675		28
Diversified Financial Services - 3.8%
Bank of America Corp.		1,366		18
JPMorgan Chase & Co.		1,440		49
Diversified Telecommunication Services - 3.5%
Verizon Communications, Inc.		2,026		62
Electronic Equipment & Instruments - 1.3%
Tyco Electronics, Ltd.		1,300		24
Energy Equipment & Services - 0.8%
Schlumberger, Ltd.		275		15
Food & Staples Retailing - 1.4%
Costco Wholesale Corp.		574		26
Health Care Equipment & Supplies - 3.4%
Becton Dickinson & Co.		594		43
Covidien PLC		442		17
Internet & Catalog Retail - 3.8%
Amazon.com, Inc. ‡		812		68
Internet Software & Services - 2.4%
Google, Inc. -Class A ‡		102		43
Leisure Equipment & Products - 1.1%
Hasbro, Inc.		843		20
Life Sciences Tools & Services - 1.3%
Millipore Corp. ‡		330		23
Machinery - 7.9%
Caterpillar, Inc.		543		18
Donaldson Co., Inc.		885		31
Kennametal, Inc.		2,550		49
PACCAR, Inc.		1,330		43
Media - 3.5%
Dreamworks Animation SKG, Inc. -Class A ‡		612		17
Walt Disney Co.		1,995		46
Oil, Gas & Consumable Fuels - 1.2%
Anadarko Petroleum Corp.		445		20
Paper & Forest Products - 2.5%
Weyerhaeuser Co.		1,440		44
Real Estate Investment Trusts - 1.8%
Plum Creek Timber Co., Inc.		1,082		32
Road & Rail - 2.2%
Burlington Northern Santa Fe Corp.		545		40
Semiconductors & Semiconductor Equipment - 2.0%
Intel Corp.		2,105		35
Software - 7.4%
Activision Blizzard, Inc. ‡		1,356		17
Adobe Systems, Inc. ‡		1,530		44
Intuit, Inc. ‡		1,330		37
Oracle Corp.		1,605		34
Textiles, Apparel & Luxury Goods - 2.2%
Nike, Inc. -Class B		775		40
Trading Companies & Distributors - 2.3%
WW Grainger, Inc.		500		41
Total Common Stocks (cost $1,748)				1,740

	Principal		Value
REPURCHASE AGREEMENT - 3.3%
State Street Repurchase Agreement 0.01%, dated 06/30/2009, to be repurchased at $59 on 07/01/2009 •	$	59		59
Total Repurchase Agreement (cost $59)
Total Investment Securities (cost $1,807) #				1,799
Other Assets and Liabilities — Net				(13	)
Net Assets			$	1,786

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 25

Transamerica Premier Institutional Diversified Equity Fund

SCHEDULE OF INVESTMENTS (continued)
At June 30, 2009
(all amounts in thousands)
(unaudited)

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 4.72%, a maturity date of 08/01/2034, and with a market value plus accrued interest of $60.
#	Aggregate cost for federal income tax purposes is $1,807. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $55 and $63, respectively. Net unrealized depreciation for tax purposes is $8.

DEFINITION:

PLC Public Limited Company

VALUATION SUMMARY:

Investment Securities	Level 1		Level 2		Level 3		Total
Equities — Consumer Discretionary	$	328	$	—	$	—	$	328
Equities — Consumer Staples		45		—		—		45
Equities — Energy		35		—		—		35
Equities — Financials		258		—		—		258
Equities — Health Care		66		—		—		66
Equities — Industrials		364		—		—		364
Equities — Information Technology		427		—		—		427
Equities — Materials		155		—		—		155
Equities — Telecommunication Services		62		—		—		62
Cash & Cash Equivalent — Repurchase Agreement		—		59		—		59
Total	$	1,740	$	59	$	—	$	1,799

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 26

Transamerica Premier Institutional Equity Fund

SCHEDULE OF INVESTMENTS
At June 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
COMMON STOCKS - 97.3%
Aerospace & Defense - 3.4%
Raytheon Co.		58,000	$	2,577
Air Freight & Logistics - 2.1%
Expeditors International of Washington, Inc.		47,000		1,567
Auto Components - 6.9%
BorgWarner, Inc.		68,500		2,339
Johnson Controls, Inc.		130,000		2,823
Biotechnology - 4.3%
Gilead Sciences, Inc. ‡		69,300		3,246
Capital Markets - 6.6%
Charles Schwab Corp.		138,560		2,430
T. Rowe Price Group, Inc.		60,000		2,500
Chemicals - 12.8%
Ecolab, Inc.		40,000		1,560
Monsanto Co.		10,000		743
Praxair, Inc.		54,000		3,838
Sigma-Aldrich Corp.		70,000		3,469
Commercial Banks - 3.5%
Wells Fargo & Co.		110,000		2,669
Communications Equipment - 7.9%
Cisco Systems, Inc. ‡		100,000		1,864
Qualcomm, Inc.		92,000		4,159
Computers & Peripherals - 9.3%
Apple, Inc. ‡		32,100		4,573
Hewlett-Packard Co.		20,000		773
International Business Machines Corp.		16,400		1,712
Construction & Engineering - 2.0%
Jacobs Engineering Group, Inc. ‡		35,000		1,473
Electrical Equipment - 2.2%
Emerson Electric Co.		50,000		1,620
Electronic Equipment & Instruments - 1.7%
Tyco Electronics, Ltd.		66,825		1,242
Food & Staples Retailing - 1.8%
Wal-Mart Stores, Inc.		28,655		1,388
Health Care Equipment & Supplies - 5.0%
Becton Dickinson & Co.		32,200		2,296
Varian Medical Systems, Inc. ‡		40,020		1,406
Industrial Conglomerates - 1.9%
General Electric Co.		123,000		1,442
Internet & Catalog Retail - 6.0%
Amazon.com, Inc. ‡		54,000		4,518
Internet Software & Services - 4.9%
Google, Inc. -Class A ‡		8,700		3,668
IT Services - 2.4%
Automatic Data Processing, Inc.		50,620		1,794
Machinery - 4.1%
Caterpillar, Inc.		30,920		1,022
PACCAR, Inc.		64,000		2,080
Media - 2.0%
Walt Disney Co.		66,000		1,540
Oil, Gas & Consumable Fuels - 1.0%
EOG Resources, Inc.		11,000		747
Pharmaceuticals - 1.6%
Teva Pharmaceutical Industries, Ltd. ADR		24,845		1,226
Road & Rail - 2.9%
Union Pacific Corp.		42,000		2,187
Software - 1.0%
Microsoft Corp.		31,000		736
Total Common Stocks (cost $82,331)				73,227

	Principal		Value
REPURCHASE AGREEMENT - 2.5%
State Street Repurchase Agreement 0.01%, dated 06/30/2009, to be repurchased at $1,879 on 07/01/2009 •	$	1,879		1,879
Total Repurchase Agreement (cost $1,879)
Total Investment Securities (cost $84,210) #				75,106
Other Assets and Liabilities — Net				119
Net Assets			$	75,225

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 4.72%, a maturity date of 08/01/2034, and with a market value plus accrued interest of $1,918.
#	Aggregate cost for federal income tax purposes is $84,210. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $3,494 and $12,598, respectively. Net unrealized depreciation for tax purposes is $9,104.

DEFINITION:

ADR American Depositary Receipt

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 27

Transamerica Premier Institutional Equity Fund

SCHEDULE OF INVESTMENTS (continued)
At June 30, 2009
(all amounts in thousands)

VALUATION SUMMARY:

Investment Securities	Level 1		Level 2		Level 3		Total
Equities — Consumer Discretionary	$	11,220	$	—	$	—	$	11,220
Equities — Consumer Staples		1,388		—		—		1,388
Equities — Energy		747		—		—		747
Equities — Financials		7,599		—		—		7,599
Equities — Health Care		8,174		—		—		8,174
Equities — Industrials		13,968		—		—		13,968
Equities — Information Technology		20,521		—		—		20,521
Equities — Materials		9,610		—		—		9,610
Cash & Cash Equivalent — Repurchase Agreement		—		1,879		—		1,879
Total	$	73,227	$	1,879	$	—	$	75,106

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 28

Transamerica Premier Institutional Small Cap Value Fund

SCHEDULE OF INVESTMENTS
At June 30, 2009
(all amounts except share amounts in thousands)
(unaudited)

	Shares		Value
COMMON STOCKS - 94.9%
Auto Components - 3.3%
Tenneco, Inc. ‡		19,945	$	211
Chemicals - 4.7%
Intrepid Potash, Inc. ‡		6,865		193
Terra Industries, Inc.		4,370		106
Commercial Banks - 3.8%
Bank of Hawaii Corp.		3,326		119
City National Corp.		3,326		123
Communications Equipment - 7.9%
Arris Group, Inc. ‡		13,900		169
Brocade Communications Systems, Inc. ‡		21,468		168
Harmonic Lightwaves, Inc. ‡		28,565		168
Electric Utilities - 4.5%
ITC Holdings Corp.		2,866		130
NV Energy, Inc.		7,355		79
Portland General Electric Co.		3,990		78
Electrical Equipment - 5.2%
General Cable Corp. ‡		5,490		207
Woodward Governor Co.		6,324		125
Energy Equipment & Services - 5.3%
Atwood Oceanics, Inc. ‡		3,918		98
Oil States International, Inc. ‡		6,056		146
Superior Energy Services, Inc. ‡		5,378		93
Health Care Equipment & Supplies - 1.6%
West Pharmaceutical Services, Inc.		2,945		103
Health Care Providers & Services - 2.4%
Mednax, Inc. ‡		3,676		155
Health Care Technology - 2.7%
Allscripts-Misys Healthcare Solutions, Inc.		10,881		173
Hotels, Restaurants & Leisure - 3.7%
Cheesecake Factory ‡		7,656		133
Penn National Gaming, Inc. ‡		3,373		98
Household Durables - 2.1%
Tupperware Brands Corp.		5,185		135
IT Services - 2.4%
NeuStar, Inc. -Class A ‡		7,018		156
Leisure Equipment & Products - 1.7%
Pool Corp.		6,533		108
Life Sciences Tools & Services - 3.3%
Charles River Laboratories International, Inc. ‡		6,285		211
Machinery - 8.9%
Clarcor, Inc.		4,558		133
Lindsay Corp.		3,800		126
Titan International, Inc.		27,421		206
Watts Water Technologies, Inc. -Class A		5,155		111
Media - 0.8%
Lamar Advertising Co. -Class A ‡		3,475		53
Metals & Mining - 3.7%
Olympic Steel, Inc.		3,770		92
Thompson Creek Metals Co., Inc. ‡		14,307		146
Oil, Gas & Consumable Fuels - 1.5%
Comstock Resources, Inc. ‡		2,962		98
Pharmaceuticals - 2.0%
Sepracor, Inc. ‡		7,460		129
Professional Services - 2.4%
FTI Consulting, Inc. ‡		3,000		152
Real Estate Investment Trusts - 9.8%
Douglas Emmett, Inc.		9,090		82
Kilroy Realty Corp.		7,600		155
LaSalle Hotel Properties		11,624		143
Omega Healthcare Investors, Inc.		7,480		116
Potlatch Corp.		5,665		138
Real Estate Management & Development - 3.9%
Jones Lang Lasalle, Inc.		3,530		116
St. Joe Co. ‡		5,108		135
Road & Rail - 2.5%
Kansas City Southern ‡		10,143		163
Specialty Retail - 1.6%
Childrens Place Retail Stores, Inc. ‡		3,975		105
Trading Companies & Distributors - 3.2%
Beacon Roofing Supply, Inc. ‡		7,703		111
WESCO International, Inc. ‡		3,700		93
Total Common Stocks (cost $5,590)				6,088

	Principal		Value
REPURCHASE AGREEMENT - 4.6%
State Street Repurchase Agreement 0.01%, dated 06/30/2009, to be repurchased at $292 on 07/01/2009 •	$	292		292
Total Repurchase Agreement (cost $292)
Total Investment Securities (cost $5,882) #				6,380
Other Assets and Liabilities — Net				29
Net Assets			$	6,409

NOTES TO SCHEDULE OF INVESTMENTS:

‡	Non-income producing security.
•	Repurchase agreement is collateralized by a U.S. Government Agency Obligation with an interest rate of 0.61%, a maturity date of 08/25/2034, and with a market value plus accrued interest of $300.
#	Aggregate cost for federal income tax purposes is $5,882. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $915 and $417 respectively. Net unrealized appreciation for tax purposes is $498.

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 29

Transamerica Premier Institutional Small Cap Value Fund

SCHEDULE OF INVESTMENTS (continued)
At June 30, 2009
(all amounts in thousands)

VALUATION SUMMARY:

Investment Securities	Level 1		Level 2		Level 3		Total
Equities — Consumer Discretionary	$	843	$	—	$	—	$	843
Equities — Energy		435		—		—		435
Equities — Financials		1,127		—		—		1,127
Equities — Health Care		771		—		—		771
Equities — Industrials		1,427		—		—		1,427
Equities — Information Technology		661		—		—		661
Equities — Materials		537		—		—		537
Equities — Utilities		287		—		—		287
Cash & Cash Equivalent — Repurchase Agreement		—		292		—		292
Total	$	6,088	$	292	$	—	$	6,380

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 30

STATEMENTS OF ASSETS & LIABILITIES
At June 30, 2009
(all amounts except per share amounts in thousands)
(unaudited)

																Transamerica
							Transamerica									Premier			Transamerica
	Transamerica			Transamerica			Premier			Transamerica			Transamerica			Growth			Premier High
	Premier			Premier Cash			Diversified			Premier Equity			Premier Focus			Opportunities			Yield Bond
	Balanced Fund			Reserve Fund			Equity Fund			Fund			Fund			Fund			Fund
Assets:
Investment securities, at value	$	277,219		$	51,664		$	213,785		$	416,506		$	50,015		$	80,347		$	83,547
Repurchase agreement, at value		7,813			1,118			12,065			27,020			11,405			2,630			1,035
Prepaid money market guarantee insurance		—			7			—			—			—			—			—
Receivables:
Investment securities sold		17			—			—			—			—			1,267			987
Shares of beneficial interest sold		221			62			245			1,020			17			22			690
Interest		1,189			10			—	(a)		—	(a)		—	(a)		—	(a)		1,932
Dividends		157			—			149			404			49			52			—
Dividend reclaims		—			—			—			—			—			2			—
Due from advisor		—			3			—			—			—			—			—
Other		—			—			—			—			—			100			—
	$	286,616		$	52,864		$	226,244		$	444,950		$	61,486		$	84,420		$	88,191
Liabilities:
Payables:
Investment securities purchased		2,906			—			—			—			2,474			358			1,207
Shares of beneficial interest redeemed		183			128			47			891			10			7			276
Management and advisory fees		119			—			118			244			37			51			34
Distribution and service fees		62			—			50			98			13			19			12
Transfer agent fees		64			3			55			112			9			19			—	(a)
Trustees fees		1			—	(a)		1			2			—	(a)		—	(a)		—	(a)
Administration fees		8			2			5			13			2			2			2
Distributions to shareholders		—			4			—			—			—			—			8
Other		45			27			39			57			21			25			19
		3,388			164			315			1,417			2,566			481			1,558
Net assets	$	283,228		$	52,700		$	225,929		$	443,533		$	58,920		$	83,939		$	86,633
Net assets consist of:
Paid-in capital	$	326,396		$	52,700		$	268,116		$	755,085		$	67,811		$	105,906		$	115,019
Undistributed (accumulated) net investment income (loss)		3,206			—			672			2,271			(182	)		(33	)		16
Accumulated net realized gain (loss) on investments		(40,176	)		—			(24,354	)		(269,014	)		(11,984	)		(20,142	)		(29,113	)
Net unrealized appreciation (depreciation) of investments		(6,198	)		—			(18,505	)		(44,809	)		3,275			(1,792	)		711
Net assets	$	283,228		$	52,700		$	225,929		$	443,533		$	58,920		$	83,939		$	86,633
Institutional Class
Net assets	$	—		$	—		$	—		$	—		$	—		$	—		$	35,181
Shares outstanding		—			—			—			—			—			—			5,926
Net asset value, offering price and redemption price per share	$	—		$	—		$	—		$	—		$	—		$	—		$	5.94
Investor Class
Net assets	$	283,228		$	52,700		$	225,929		$	443,533		$	58,920		$	83,939		$	51,452
Shares outstanding		15,374			52,700			20,832			29,615			3,788			4,537			8,566
Net asset value, offering price and redemption price per share		18.42			1.00			10.85			14.98			15.55			18.50			6.01
Investment securities, at cost	$	283,417		$	51,664		$	232,290		$	461,315		$	46,740		$	82,139		$	82,836
Repurchase agreement, at cost	$	7,813		$	1,118		$	12,065		$	27,020		$	11,405		$	2,630		$	1,035

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 31

STATEMENTS OF ASSETS & LIABILITIES (continued)
At June 30, 2009
(all amounts except per share amounts in thousands)
(unaudited)

				Transamerica						Transamerica
	Transamerica			Premier			Transamerica			Premier
	Premier			Institutional			Premier			Institutional
	Institutional			Diversified			Institutional			Small Cap
	Bond Fund			Equity Fund			Equity Fund			Value Fund
Assets:
Investment securities, at value	$	1,202		$	1,740		$	73,227		$	6,088
Repurchase agreement, at value		32			59			1,879			292
Receivables:
Shares of beneficial interest sold		—			—			138			44
Interest		14			—	(a)		—	(a)		—	(a)
Dividends		—			1			70			6
Due from advisor		4			2			—			1
	$	1,252		$	1,802		$	75,314		$	6,431
Liabilities:
Payables:
Investment securities purchased		16			—			—			—
Shares of beneficial interest redeemed		—			—			19			—
Management and advisory fees		—			—			38			—
Transfer agent fees		—	(a)		—	(a)		3			1
Trustees fees		—	(a)		—	(a)		—	(a)		—	(a)
Administration fees		—	(a)		—	(a)		2			—	(a)
Other		19			16			27			21
		35			16			89			22
Net assets	$	1,217		$	1,786		$	75,225		$	6,409
Net assets consist of:
Paid-in capital	$	1,243		$	1,848		$	111,819		$	11,786
Undistributed net investment income (loss)		—			5			485			30
Accumulated net realized gain (loss) on investments		(56	)		(59	)		(27,975	)		(5,905	)
Net unrealized appreciation (depreciation) of investments		30			(8	)		(9,104	)		498
Net assets	$	1,217		$	1,786		$	75,225		$	6,409
Institutional Class
Net assets	$	1,217		$	1,786		$	75,225		$	6,409
Shares outstanding		129			216			9,324			565
Net asset value, offering price and redemption price per share	$	9.41		$	8.26		$	8.07		$	11.35
Investment securities, at cost	$	1,172		$	1,748		$	82,331		$	5,590
Repurchase agreement, at cost	$	32		$	59		$	1,879		$	292

^(a) Rounds to less than $1.

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 32

STATEMENTS OF OPERATIONS
For the period ended June 30, 2009
(all amounts in thousands)
(unaudited)

							Transamerica									Transamerica
	Transamerica			Transamerica			Premier			Transamerica			Transamerica			Premier Growth
	Premier			Premier Cash			Diversified			Premier Equity			Premier Focus			Opportunities
	Balanced Fund			Reserve Fund			Equity Fund			Fund			Fund			Fund
Investment income:
Dividend income	$	1,438		$	—		$	1,689		$	3,899		$	164		$	472
Less withholding taxes on foreign dividends		—			—			—			(4	)		(2	)		—	(a)
Interest income		3,201			243			—	(a)		6			1			—	(a)
Securities lending income (net)		23			—			36			28			10			19
		4,662			243			1,725			3,929			173			491
Expenses
Management and advisory		992			107			728			1,872			222			318
Transfer agent and shareholder servicing:
Investor Class		399			42			297			479			72			128
Distribution and service:
Investor Class		331			—			242			551			65			93
Custodian		21			7			10			27			5			8
Registration:
Investor Class		9			10			13			35			15			15
Administration		40			10			28			69			8			11
Legal		9			2			6			15			2			2
Audit		14			14			14			14			14			14
Trustees		8			2			5			13			1			2
Money market guarantee insurance		—			16			—			—			—			—
Printing and shareholder reports		21			5			14			38			4			6
Other		6			2			4			12			1			2
Total expenses		1,850			217			1,361			3,125			409			599
Reimbursed expenses and waived fees:
Investor Class		(394	)		(120	)		(246	)		(592	)		(43	)		(75	)
Net expenses		1,456			97			1,115			2,533			366			524
Net investment income (loss)		3,206			146			610			1,396			(193	)		(33	)
Net realized gain (loss) on investments:
Net realized loss on investments		(34,771	)		—			(20,228	)		(123,995)			(7,343	)		(5,966	)
Change in unrealized appreciation (depreciation) on investments		51,864			—			40,926			147,304			16,139			15,572
Net realized and unrealized gain		17,093			—			20,698			23,309			8,796			9,606
Net increase In net assets resulting from operations	$	20,299		$	146		$	21,308		$	24,705		$	8,603		$	9,573

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 33

STATEMENTS OF OPERATIONS (continued)
For the period ended June 30, 2009
(all amounts in thousands)
(unaudited)

							Transamerica						Transamerica
	Transamerica			Transamerica			Premier			Transamerica			Premier
	Premier High			Premier			Institutional			Premier			Institutional
	Yield Bond			Institutional			Diversified			Institutional			Small Cap
	Fund			Bond Fund			Equity Fund			Equity Fund			Value Fund
Investment income:
Dividend income	$	11		$	—		$	8		$	612		$	42
Less withholding taxes on foreign dividends		—			—			—			(1	)		—
Interest income		3,072			34			—	(a)		—	(a)		—	(a)
Securities lending income (net)		3			—			—			6			—
		3,086			34			8			617			42
Expenses
Management and advisory		154			3			2			251			19
Transfer agent and shareholder servicing:
Institutional Class		—	(a)		—	(a)		—	(a)		9			10
Investor Class		15			—			—			—			—
Distribution and service:
Investor Class		35			—			—			—			—
Custodian		5			6			2			6			8
Registration:
Institutional Class		—			7			7			13			8
Investor Class		19			—			—			—			—
Administration		6			—	(a)		—	(a)		10			1
Legal		2			—	(a)		—	(a)		2			—	(a)
Audit		14			14			14			14			14
Trustees		1			—	(a)		—	(a)		2			—	(a)
Printing and shareholder reports		4			—	(a)		—	(a)		5			—	(a)
Other		1			—	(a)		—	(a)		2			—	(a)
Total expenses		256			30			25			314			60
Reimbursed expenses and waived fees:
Institutional Class		—			(28	)		(22	)		(56	)		(40	)
Investor Class		(33	)		—			—			—			—
Net expenses		223			2			3			258			20
Net investment income		2,863			32			5			359			22
Net realized gain (loss) on investments:
Net realized gain (loss) on investments		(637	)		2			(50	)		(13,346	)		(889	)
Change in unrealized appreciation (depreciation) on investments		12,067			55			108			18,003			1,564
Net realized and unrealized gain		11,430			57			58			4,657			675
Net increase In net assets resulting from operations	$	14,293		$	89		$	63		$	5,016		$	697

^(a) Rounds to less than $1.

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

 Transamerica Premier Funds Semi-Annual Report 2009

Page 34

STATEMENTS OF CHANGES IN NET ASSETS
For the period or years ended:
(all amounts in thousands)

	Transamerica Premier						Transamerica Premier Cash						Transamerica Premier
	Balanced Fund						Reserve Fund						Diversified Equity Fund
	June 30, 2009			December 31,			June 30, 2009			December 31,			June 30, 2009			December 31,
	(unaudited)			2008			(unaudited)			2008			(unaudited)			2008
From operations:
Net investment income	$	3,206		$	6,675		$	146		$	2,127		$	610		$	915
Net realized gain (loss) on investments		(34,771	)		3,790			—			(2	)		(20,228	)		(2,752	)
Change in unrealized appreciation (depreciation) on investments		51,864			(165,457	)		—			—			40,926			(127,173	)
Net increase (decrease) in net assets resulting from operations		20,299			(154,992	)		146			2,125			21,308			(129,010	)
Distributions to shareholders
From net investment income:
Investor Class		—			(6,185	)		(146	)		(2,127	)		—			(430	)
Return of capital:
Investor Class		—			410			—			—			—			—
From net realized gains on investments:
Investor Class		—			(10,717	)		—			—			—			(5,449	)
Total distributions to shareholders		—			(17,312	)		(146	)		(2,127	)		—			(5,879	)
Capital Share Transactions:
Proceeds from shares sold:
Investor Class		11,849			58,202			8,859			41,721			24,556			62,498
Dividends and distributions reinvested:
Investor Class		—			17,266			139			2,078			—			3,738
Cost of shares redeemed:
Investor Class		(28,435	)		(98,887	)		(25,883	)		(63,629	)		(14,384	)		(42,251	)
Redemption fee:
Investor Class		—			—			—			—			4			6
Net fund shares transactions		(16,586	)		(23,419	)		(16,885	)		(19,830	)		10,176			23,991
Net increase (decrease) in net assets		3,713			(195,723	)		(16,885	)		(19,832	)		31,484			(110,898	)
Net assets
Beginning of period/year	$	279,515		$	475,238		$	69,585		$	89,417		$	194,445		$	305,343
End of period/year	$	283,228		$	279,515		$	52,700		$	69,585		$	225,929		$	194,445
Undistributed net investment income	$	3,206		$	—		$	—		$	—		$	672		$	62
Share Activity:
Shares issued:
Investor Class		673			2,449			8,858			41,721			2,564			4,769
Shares issued-reinvested from distributions:
Investor Class		—			1,025			139			2,078			—			388
Shares redeemed:
Investor Class		(1,734	)		(4,548	)		(25,884	)		(63,629	)		(1,541	)		(3,147	)
Net increase (decrease) in shares outstanding:
Investor Class		(1,061	)		(1,074	)		(16,887	)		(19,830	)		1,023			2,010
Authorized shares		60			60			510			510			50			50

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 35

STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the period or years ended:
(all amounts in thousands)

	Transamerica Premier Equity						Transamerica Premier Focus						Transamerica Premier
	Fund						Fund						Growth Opportunities Fund
	June 30, 2009			December 31,			June 30, 2009			December 31,			June 30, 2009			December 31,
	(unaudited)			2008			(unaudited)			2008			(unaudited)			2008
From operations:
Net investment income (loss)	$	1,396		$	2,637		$	(193	)	$	(381	)	$	(33	)	$	(561	)
Net realized gain (loss) on investments		(123,995	)		(145,013	)		(7,343	)		(4,628	)		(5,966	)		(14,019	)
Change in unrealized appreciation (depreciation) on investments		147,304			(364,089	)		16,139			(32,976	)		15,572			(42,689	)
Net increase (decrease) in net assets resulting from operations		24,705			(506,465	)		8,603			(37,985	)		9,573			(57,269	)
Distributions to shareholders
From net investment income:
Investor Class		—			(1,762	)		—			—			—			—
From net realized gains on investments:
Investor Class		—			(7,039	)		—			(2,249	)		—			—
Total distributions to shareholders		—			(8,801	)		—			(2,249	)		—			—
Capital Share Transactions:
Proceeds from shares sold:
Investor Class		58,458			452,101			4,739			5,204			3,772			9,811
Dividends and distributions reinvested:
Investor Class		—			8,591			—			2,226			—			—
Cost of shares redeemed:
Investor Class		(147,274	)		(484,339	)		(5,256	)		(11,740	)		(7,463	)		(21,356	)
Redemption fee:
Investor Class		8			137			—			6			1			19
Net fund shares transactions		(88,808	)		(23,510	)		(517	)		(4,304	)		(3,690	)		(11,526	)
Net increase (decrease) in net assets		(64,103	)		(538,776	)		8,086			(44,538	)		5,883			(68,795	)
Net assets
Beginning of period/year	$	507,636		$	1,046,412		$	50,834		$	95,372		$	78,056		$	146,851
End of period/year	$	443,533		$	507,636		$	58,920		$	50,834		$	83,939		$	78,056
Undistributed (accumulated) net investment income (loss)	$	2,271		$	875		$	(182	)	$	11		$	(33	)	$	—
Share Activity:
Shares issued:
Investor Class		4,426			21,310			342			274			232			429
Shares issued-reinvested from distributions:
Investor Class		—			629			—			170			—			—
Shares redeemed:
Investor Class		(11,334	)		(26,291	)		(383	)		(649	)		(475	)		(968	)
Net (decrease) in shares outstanding:
Investor Class		(6,908	)		(4,352	)		(41	)		(205	)		(243	)		(539	)
Authorized shares		70			70			60			60			60			60

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 36

STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the period or years ended:
(all amounts in thousands)

													Transamerica Premier
	Transamerica Premier High						Transamerica Premier						Institutional Diversified
	Yield Bond Fund						Institutional Bond Fund						Equity Fund
	June 30, 2009			December 31,			June 30, 2009			December 31,			June 30, 2009			December 31,
	(unaudited)			2008			(unaudited)			2008			(unaudited)			2008
From operations:
Net investment income	$	2,863		$	4,164		$	32		$	54		$	5		$	4
Net realized gain (loss) on investments		(637	)		(6,655	)		2			(24	)		(50	)		7
Change in unrealized appreciation (depreciation) on investments		12,067			(9,237	)		55			(23	)		108			(315	)
Net increase (decrease) in net assets resulting from operations		14,293			(11,728	)		89			7			63			(304	)
Distributions to shareholders
From net investment income:
Institutional Class		(1,481	)		(3,216	)		(31	)		(55	)		—			(5	)
Investor Class		(1,425	)		(1,081	)		—			—			—			—
From net realized gains on investments:
Institutional Class		—			—			—			—			—			(21	)
Investor Class		—			—			—			—			—			—
Total distributions to shareholders		(2,906	)		(4,297	)		(31	)		(55	)		—			(26	)
Capital Share Transactions:
Proceeds from shares sold:
Institutional Class		4,299			2,637			14			—			1,287			2
Investor Class		53,783			39,338			—			—			—			—
		58,082			41,975			14			—			1,287			2
Dividends and distributions reinvested:
Institutional Class		1,481			3,216			31			54			—			26
Investor Class		1,381			1,006			—			—			—			—
		2,862			4,222			31			54			—			26
Cost of shares redeemed:
Institutional Class		(2,573	)		(15,126	)		—			—			—			—
Investor Class		(15,794	)		(39,095	)		—			—			—			—
		(18,367	)		(54,221	)		—			—			—			—
Net fund shares transactions		42,577			(8,024	)		45			54			1,287			28
Net increase (decrease) in net assets		53,964			(24,049	)		103			6			1,350			(302	)
Net assets
Beginning of period/year	$	32,669		$	56,718		$	1,114		$	1,108		$	436		$	738
End of period/year	$	86,633		$	32,669		$	1,217		$	1,114		$	1,786		$	436
Undistributed (accumulated) net investment income (loss)	$	16		$	59		$	—		$	(1	)	$	5		$	—
Share Activity:
Shares issued:
Institutional Class		789			405			3			—			160			1
Investor Class		9,942			5,708			—			—			—			—
		10,731			6,113			3			—			160			1
Shares issued-reinvested from distributions:
Institutional Class		269			512			3			5			—			3
Investor Class		240			153			—			—			—			—
		509			665			3			5			—			3
Shares redeemed:
Institutional Class		(478	)		(2,228	)		—			—			—			—
Investor Class		(2,827	)		(5,766	)		—			—			—			—
		(3,305	)		(7,994	)		—			—			—			—
Net increase (decrease) in shares outstanding:
Institutional Class		580			(1,311	)		6			5			160			4
Investor Class		7,355			95			—			—			—			—
		7,935			(1,216	)		6			5			160			4
Authorized shares		50			50			50			50			50			50

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 37

STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the period or years ended:
(all amounts in thousands)

							Transamerica Premier
	Transamerica Premier						Institutional Small Cap Value
	Institutional Equity Fund						Fund
	June 30, 2009			December 31,			June 30, 2009			December 31,
	(unaudited)			2008			(unaudited)			2008
From operations:
Net investment income	$	359		$	755		$	22		$	177
Net realized gain (loss) on investments		(13,346	)		(14,594	)		(889	)		(5,033	)
Change in unrealized appreciation (depreciation) on investments		18,003			(43,056	)		1,564			(1,195	)
Net increase (decrease) in net assets resulting from operations		5,016			(56,895	)		697			(6,051	)
Distributions to shareholders
From net investment income:
Institutional Class		—			(734	)		—			(153	)
From net realized gains on investments:
Institutional Class		—			(152	)		—			(55	)
Total distributions to shareholders		—			(886	)		—			(208	)
Capital Share Transactions:
Proceeds from shares sold:
Institutional Class		13,828			69,905			2,612			18,008
Dividends and distributions reinvested:
Institutional Class		—			715			—			171
Cost of shares redeemed:
Institutional Class		(16,358	)		(38,269	)		(1,959	)		(9,758	)
Net fund shares transactions		(2,530	)		32,351			653			8,421
Net increase (decrease) in net assets		2,486			(25,430	)		1,350			2,162
Net assets
Beginning of period/year	$	72,739		$	98,169		$	5,059		$	2,897
End of period/year	$	75,225		$	72,739		$	6,409		$	5,059
Undistributed net investment income	$	485		$	126		$	30		$	8
Share Activity:
Shares issued:
Institutional Class		1,939			6,435			250			1,129
Shares issued-reinvested from distributions:
Institutional Class		—			98			—			19
Shares redeemed:
Institutional Class		(2,377	)		(4,072	)		(214	)		(802	)
Net increase (decrease) in shares outstanding:
Institutional Class		(438	)		2,461			36			346
Authorized shares		30			30			50			50

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 38

FINANCIAL HIGHLIGHTS
For the period or years ended:

	Transamerica Premier Balanced Fund
	Investor Class
For a share outstanding throughout each period	June 30, 2009 (unaudited)			December 31, 2008			December 31, 2007			December 31, 2006			December 31, 2005			December 31, 2004
Net asset value
Beginning of period/year	$	17.01		$	27.14		$	25.24		$	23.63		$	22.60		$	20.22
Investment operations
Net investment income (loss)(a)		0.20			0.39			0.33			0.25			0.26			(0.22	)
Net realized and unrealized gain (loss) on investments		1.21			(9.43	)		2.97			1.69			1.04			2.83
Total from investment operations		1.41			(9.04	)		3.30			1.94			1.30			2.61
Distributions
Net investment income		—			(0.39	)		(0.38	)		(0.19	)		(0.27	)		(0.23	)
Net realized gains on investments		—			(0.03	)		(1.02	)		(0.14	)		—			—
Return of capital		—			(0.67	)		—			—			—			—
Total distributions		—			(1.09	)		(1.40	)		(0.33	)		(0.27	)		(0.23	)
Net asset value
End of period/year	$	18.42		$	17.01		$	27.14		$	25.24		$	23.63		$	22.60
Total return(b)		8.29	%(c)		(33.27	%)		13.04	%		8.20	%		5.81	%		12.92	%
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.10	%(d)		1.10	%		1.10	%		1.10	%		1.08	%		1.29	%
Before reimbursement/fee waiver		1.40	%(d)		1.24	%		1.10	%		1.10	%		1.14	%		1.29	%
Net investment income (loss), to average net assets		2.42	%(d)		1.68	%		1.21	%		1.02	%		1.14	%		(1.04	%)
Portfolio turnover rate		69	%(c)		69	%		58	%		45	%		53	%		47	%
Net assets end of period/year (in thousands)	$	283,228		$	279,515		$	475,238		$	376,686		$	305,892		$	245,138
	Transamerica Premier Cash Reserve Fund
	Investor Class
For a share outstanding throughout each period	June 30, 2009 (unaudited)			December 31, 2008			December 31, 2007			December 31, 2006			December 31, 2005			December 31, 2004
Net asset value
Beginning of period/year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Investment operations
Net investment income(a)		—	(e)		0.03			0.05			0.05			0.03			0.01
Total from investment operations		—	(e)		0.03			0.05			0.05			0.03			0.01
Distributions
Net investment income		—	(e)		(0.03	)		(0.05	)		(0.05	)		(0.03	)		(0.01	)
Total distributions		—	(e)		(0.03	)		(0.05	)		(0.05	)		(0.03	)		(0.01	)
Net asset value
End of period/year	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total return(b)		0.22	%(c)		2.57	%		5.12	%		4.91	%		3.06	%		1.16	%
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.30	%(d),(f)		0.26	%(f)		0.25	%		0.25	%		0.25	%		0.25	%
Before reimbursement/fee waiver		0.67	%(d),(f)		0.58	%(f)		0.60	%		0.68	%		0.74	%		0.63	%
Net investment income, to average net assets		0.45	%(d)		2.58	%		5.01	%		4.87	%		3.02	%		1.13	%
Net assets end of period/year (in thousands)	$	52,700		$	69,585		$	89,417		$	72,834		$	39,405		$	37,038

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 39

FINANCIAL HIGHLIGHTS (continued)
For the period or years ended

	Transamerica Premier Diversified Equity Fund
	Investor Class
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
For a share outstanding throughout each period	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	9.82		$	17.15		$	14.84		$	13.69		$	12.70		$	11.17
Investment operations
Net investment income(a)		0.03			0.05			0.01			0.01			0.02			0.03
Net realized and unrealized gain (loss) on investments		1.00			(7.08	)		2.77			1.28			0.99			1.51
Total from investment operations		1.03			(7.03	)		2.78			1.29			1.01			1.54
Distributions
Net investment income		—			(0.02	)		—	(e)		—			(0.02	)		(0.01	)
Net realized gains on investments		—			(0.28	)		(0.47	)		(0.14	)		—			—
Total distributions		—			(0.30	)		(0.47	)		(0.14	)		(0.02	)		(0.01	)
Net asset value
End of period/year	$	10.85		$	9.82		$	17.15		$	14.84		$	13.69		$	12.70
Total return(b)		10.49	%(c)		(40.93	%)		18.68	%		9.42	%		7.93	%		13.81	%
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.15	%(d)		1.15	%		1.15	%		1.15	%		1.10	%		1.20	%
Before reimbursement/fee waiver		1.40	%(d)		1.29	%		1.15	%		1.15	%		1.31	%		1.47	%
Net investment income, to average net assets		0.63	%(d)		0.35	%		0.08	%		0.04	%		0.13	%		0.28	%
Portfolio turnover rate		13	%(c)		44	%		29	%		36	%		35	%		30	%
Net assets end of period/year (in thousands)	$	225,929		$	194,445		$	305,343		$	207,607		$	148,927		$	71,487
	Transamerica Premier Equity Fund
	Investor Class
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
For a share outstanding throughout each period	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	13.90		$	25.60		$	22.52		$	22.05		$	19.46		$	16.90
Investment operations
Net investment income (loss)(a)		0.04			0.06			(0.03	)		(0.07	)		(0.08	)		(0.02	)
Net realized and unrealized gain (loss) on investments		1.04			(11.52	)		3.45			1.74			3.19			2.58
Total from investment operations		1.08			(11.46	)		3.42			1.67			3.11			2.56
Distributions
Net investment income		—			(0.05	)		—			—			—			—
Net realized gains on investments		—			(0.19	)		(0.34	)		(1.20	)		(0.52	)		—
Total distributions		—			(0.24	)		(0.34	)		(1.20	)		(0.52	)		—
Net asset value
End of period/year	$	14.98		$	13.90		$	25.60		$	22.52		$	22.05		$	19.46
Total return(b)		7.77	%(c)		(44.74	%)		15.19	%		7.54	%		15.96	%		15.15	%
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.15	%(d)		1.15	%		1.15	%		1.15	%		1.09	%		1.29	%
Before reimbursement/fee waiver		1.42	%(d)		1.30	%		1.15	%		1.15	%		1.09	%		1.29	%
Net investment income (loss), to average net assets		0.63	%(d)		0.29	%		(0.14	%)		(0.28	%)		(0.38	%)		(0.13	%)
Portfolio turnover rate		18	%(c)		47	%		40	%		37	%		32	%		34	%
Net assets end of period/year (in thousands)	$	443,533		$	507,636		$	1,046,412		$	570,680		$	423,181		$	179,454

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

 Transamerica Premier Funds Semi-Annual Report 2009

Page 40

FINANCIAL HIGHLIGHTS (continued)
For the period or years ended

	Transamerica Premier Focus Fund
	Investor Class
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
For a share outstanding throughout each period	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	13.28		$	23.64		$	19.65		$	18.59		$	16.01		$	13.87
Investment operations
Net investment loss(a)		(0.05	)		(0.10	)		(0.11	)		(0.11	)		(0.06	)		(0.07	)
Net realized and unrealized gain (loss) on investments		2.32			(9.65	)		4.11			1.17			2.64			2.21
Total from investment operations		2.27			(9.75	)		4.00			1.06			2.58			2.14
Distributions
Net realized gains on investments		—			(0.61	)		(0.01	)		—			—			—
Total distributions		—			(0.61	)		(0.01	)		—			—			—
Net asset value
End of period/year	$	15.55		$	13.28		$	23.64		$	19.65		$	18.59		$	16.01
Total return(b)		17.09	%(c)		(41.19	%)		20.35	%		5.70	%		16.12	%		15.43	%
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.40	%(d)		1.37	%		1.18	%		1.20	%		1.32	%		1.36	%
Before reimbursement/fee waiver		1.57	%(d)		1.37	%		1.18	%		1.20	%		1.32	%		1.36	%
Net investment loss, to average net assets		(0.74	%)(d)		(0.52	%)		(0.50	%)		(0.61	%)		(0.38	%)		(0.48	%)
Portfolio turnover rate		32	%(c)		66	%		51	%		46	%		67	%		64	%
Net assets end of period/year (in thousands)	$	58,920		$	50,834		$	95,372		$	87,200		$	111,705		$	92,565

	Transamerica Premier Growth Opportunities Fund
	Investor Class
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
For a share outstanding throughout each period	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	16.33		$	27.61		$	23.50		$	22.56		$	19.73		$	16.99
Investment operations
Net investment loss(a)		(0.01	)		(0.11	)		(0.14	)		(0.10	)		(0.05	)		(0.08	)
Net realized and unrealized gain (loss) on investments		2.18			(11.17	)		5.56			1.04			2.88			2.82
Total from investment operations		2.17			(11.28	)		5.42			0.94			2.83			2.74
Distributions
Net realized gains on investments		—			—			(1.31	)		—			—			—
Total distributions		—			—			(1.31	)		—			—			—
Net asset value
End of period/year	$	18.50		$	16.33		$	27.61		$	23.50		$	22.56		$	19.73
Total return(b)		13.29	%(c)		(40.85	%)		23.01	%		4.17	%		14.36	%		16.13	%
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		1.40	%(d)		1.38	%		1.17	%		1.17	%		1.31	%		1.36	%
Before reimbursement/fee waiver		1.60	%(d)		1.38	%		1.17	%		1.17	%		1.31	%		1.36	%
Net investment loss, to average net assets		(0.09	%)(d)		(0.50	%)		(0.52	%)		(0.43	%)		(0.24	%)		(0.44	%)
Portfolio turnover rate		33	%(c)		56	%		77	%		64	%		52	%		37	%
Net assets end of period/year (in thousands)	$	83,939		$	78,056		$	146,851		$	131,991		$	152,064		$	118,442

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 41

FINANCIAL HIGHLIGHTS (continued)
For the period or years ended

	Transamerica Premier High Yield Bond Fund
	Investor Class
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
For a share outstanding throughout each period	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	5.03		$	7.36		$	7.86		$	7.71		$	8.00		$	7.76
Investment operations
Net investment income(a)		0.28			0.57			0.55			0.53			0.50			0.52
Net realized and unrealized gain (loss) on investments		0.96			(2.32	)		(0.50	)		0.14			(0.28	)		0.25
Total from investment operations		1.24			(1.75	)		0.05			0.67			0.22			0.77
Distributions
Net investment income		(0.26	)		(0.58	)		(0.55	)		(0.52	)		(0.51	)		(0.53	)
Total distributions		(0.26	)		(0.58	)		(0.55	)		(0.52	)		(0.51	)		(0.53	)
Net asset value
End of period/year	$	6.01		$	5.03		$	7.36		$	7.86		$	7.71		$	8.00
Total return(b)		25.10	%(c)		(25.19	%)		0.59	%		9.01	%		2.93	%		10.38	%
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.90	%(d)		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Before reimbursement/fee waiver		1.14	%(d)		1.37	%		1.32	%		1.19	%		1.34	%		1.43	%
Net investment income, to average net assets		9.81	%(d)		8.36	%		7.04	%		6.81	%		6.46	%		6.75	%
Portfolio turnover rate		26	%(c)		82	%		89	%		127	%		93	%		152	%
Net assets end of period/year (in thousands)	$	51,452		$	6,087		$	8,209		$	16,418		$	12,062		$	8,227

	Transamerica Premier High Yield Bond Fund
	Institutional Class
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
For a share outstanding throughout each period	(unaudited)			2008			2007			2006			2005			2004
Net asset value
Beginning of period/year	$	4.97		$	7.29		$	7.79		$	7.65		$	7.95		$	7.70
Investment operations
Net investment income(a)		0.27			0.57			0.57			0.55			0.52			0.54
Net realized and unrealized gain (loss) on investments		0.96			(2.30	)		(0.49	)		0.13			(0.29	)		0.26
Total from investment operations		1.23			(1.73	)		0.08			0.68			0.23			0.80
Distributions
Net investment income		(0.26	)		(0.59	)		(0.58	)		(0.54	)		(0.53	)		(0.55	)
Total distributions		(0.26	)		(0.59	)		(0.58	)		(0.54	)		(0.53	)		(0.55	)
Net asset value
End of period/year	$	5.94		$	4.97		$	7.29		$	7.79		$	7.65		$	7.95
Total return(b)		25.33	%(c)		(25.13	%)		0.86	%		9.23	%		3.08	%		10.88	%
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.64	%(d)		0.65	%		0.65	%		0.64	%		0.65	%		0.63	%
Before reimbursement/fee waiver		0.64	%(d)		0.65	%		0.66	%		0.64	%		0.70	%		0.63	%
Net investment income, to average net assets		9.91	%(d)		8.77	%		7.30	%		7.09	%		6.65	%		7.06	%
Portfolio turnover rate		26	%(c)		82	%		89	%		127	%		93	%		152	%
Net assets end of period/year (in thousands)	$	35,181		$	26,582		$	48,509		$	105,597		$	97,480		$	135,161

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 42

FINANCIAL HIGHLIGHTS (continued)
For the period or years ended

	Transamerica Premier Institutional Bond Fund
	Institutional Class
	June 30, 2009			December 31,			December 31,			December 31,			December 31,
For a share outstanding throughout each period	(unaudited)			2008			2007			2006			2005(g)
Net asset value
Beginning of period/year	$	8.96		$	9.36		$	9.41		$	9.75		$	10.00
Investment operations
Net investment income(a)		0.25			0.45			0.47			0.46			0.38
Net realized and unrealized gain (loss) on investments		0.44			(0.40	)		(0.04	)		(0.10	)		(0.23	)
Total from investment operations		0.69			0.05			0.43			0.36			0.15
Distributions
Net investment income		(0.24	)		(0.45	)		(0.48	)		(0.48	)		(0.40	)
Return of capital		—			—			—			(0.22	)		—
Total distributions		(0.24	)		(0.45	)		(0.48	)		(0.70	)		(0.40	)
Net asset value
End of period/year	$	9.41		$	8.96		$	9.36		$	9.41		$	9.75
Total return(b)		7.86	%(c)		0.56	%		4.68	%		3.88	%		1.53	%(c)
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.45	%(d)		0.45	%		0.45	%		0.45	%		0.45	%(d)
Before reimbursement/fee waiver		5.26	%(d)		5.50	%		6.25	%		5.74	%		7.97	%(d)
Net investment income, to average net assets		5.58	%(d)		4.91	%		5.00	%		4.80	%		4.18	%(d)
Portfolio turnover rate		107	%(c)		109	%		88	%		151	%		269	%(c)
Net assets end of period/year (in thousands)	$	1,217		$	1,114		$	1,108		$	1,067		$	1,027

	Transamerica Premier Institutional Diversified Equity Fund
	Institutional Class
	June 30, 2009			December 31,			December 31,			December 31,			December 31,
For a share outstanding throughout each period	(unaudited)			2008			2007			2006			2005(g)
Net asset value
Beginning of period/year	$	7.79		$	14.06		$	12.21		$	11.14		$	10.00
Investment operations
Net investment income(a)		0.06			0.09			0.06			0.05			0.05
Net realized and unrealized gain (loss) on investments		0.41			(5.87	)		2.43			1.02			1.14
Total from investment operations		0.47			(5.78	)		2.49			1.07			1.19
Distributions
Net investment income		—			(0.09	)		(0.06	)		—			(0.05	)
Net realized gains on investments		—			(0.40	)		(0.58	)		—			—
Total distributions		—			(0.49	)		(0.64	)		—			(0.05	)
Net asset value
End of period/year	$	8.26		$	7.79		$	14.06		$	12.21		$	11.14
Total return(b)		6.03	%(c)		(41.06	%)		20.34	%		9.61	%		11.88	%(c)
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.75	%(d)		0.75	%		0.75	%		0.75	%		0.75	%(d)
Before reimbursement/fee waiver		7.51	%(d)		8.87	%		9.02	%		8.90	%		9.27	%(d)
Net investment income, to average net assets		1.52	%(d)		0.74	%		0.44	%		0.40	%		0.52	%(d)
Portfolio turnover rate		13	%(c)		46	%		31	%		40	%		38	%(c)
Net assets end of period/year (in thousands)	$	1,786		$	436		$	738		$	613		$	559

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 43

FINANCIAL HIGHLIGHTS (continued)
For the period or years ended

	Transamerica Premier Institutional Equity Fund
	Institutional Class
	June 30, 2009			December 31,			December 31,			December 31,			December 31,			December 31,
For a share outstanding throughout each period	(unaudited)			2008			2007			2006			2005			2004(h)
Net asset value
Beginning of period/year	$	7.45		$	13.45		$	12.21		$	11.41		$	11.11		$	10.00
Investment operations
Net investment income (loss)(a)		0.04			0.08			0.04			0.01			(0.01	)		0.08
Net realized and unrealized gain (loss) on investments		0.58			(5.99	)		1.79			0.93			1.91			1.40
Total from investment operations		0.62			(5.91	)		1.83			0.94			1.90			1.48
Distributions
Net investment income		—			(0.07	)		(0.01	)		(0.01	)		—			(0.36	)
Net realized gains on investments		—			(0.02	)		(0.58	)		(0.13	)		(1.60	)		(0.01	)
Total distributions		—			(0.09	)		(0.59	)		(0.14	)		(1.60	)		(0.37	)
Net asset value
End of period/year	$	8.07		$	7.45		$	13.45		$	12.21		$	11.41		$	11.11
Total return(b)		8.32	%(c)		(43.92	%)		14.96	%		8.22	%		17.03	%		11.51	%(c)
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.75	%(d)		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%(d)
Before reimbursement/fee waiver		0.91	%(d)		0.85	%		0.90	%		0.93	%		1.05	%		0.90	%(d)
Net investment income (loss), to average net assets		1.05	%(d)		0.74	%		0.28	%		0.09	%		(0.06	%)		1.31	%(d)
Portfolio turnover rate		18	%(c)		35	%		47	%		31	%		122	%		18	%(c)
Net assets end of period/year (in thousands)	$	75,225		$	72,739		$	98,169		$	58,448		$	44,106		$	62,110

	Transamerica Premier Institutional Small Cap Value Fund
	Institutional Class
	June 30, 2009			December 31,			December 31,			December 31,			December 31,
For a share outstanding throughout each period	(unaudited)			2008			2007			2006			2005(g)
Net asset value
Beginning of period/year	$	9.56		$	15.81		$	12.32		$	10.73		$	10.00
Investment operations
Net investment income(a)		0.05			0.36			0.22			0.14			0.10
Net realized and unrealized gain (loss) on investments		1.74			(6.23	)		3.87			1.88			1.17
Total from investment operations		1.79			(5.87	)		4.09			2.02			1.27
Distributions
Net investment income		—			(0.28	)		(0.29	)		(0.12	)		(0.08	)
Net realized gains on investments		—			(0.10	)		(0.31	)		(0.31	)		(0.46	)
Total distributions		—			(0.38	)		(0.60	)		(0.43	)		(0.54	)
Net asset value
End of period/year	$	11.35		$	9.56		$	15.81		$	12.32		$	10.73
Total return(b)		18.72	%(c)		(37.01	%)		33.12	%		18.74	%		12.67	%(c)
Ratio and supplemental data
Expenses to average net assets
After reimbursement/fee waiver		0.85	%(d)		0.85	%		0.85	%		0.85	%		0.85	%(d)
Before reimbursement/fee waiver		2.59	%(d)		1.95	%		6.37	%		8.68	%		9.32	%(d)
Net investment income, to average net assets		0.94	%(d)		2.62	%		1.49	%		1.15	%		1.00	%(d)
Portfolio turnover rate		74	%(c)		135	%		31	%		53	%		53	%(c)
Net assets end of period/year (in thousands)	$	6,409		$	5,059		$	2,897		$	674		$	563

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 44

FINANCIAL HIGHLIGHTS (continued)
For the period or years ended

(a)	Calculated based on the average number of shares outstanding during the period.
(b)	Total Return represents aggregate total return for each period.
(c)	Not annualized.
(d)	Annualized.
(e)	Rounds to less than $0.01 or $(0.01) per share.
(f)	Includes Money Market Guarantee expense. The impact of the Money Market Guarantee expense is 0.01% and 0.05% for 2008 and 2009, respectively.
(g)	Commenced operations on February 1, 2005.
(h)	Commenced operations on June 1, 2004.

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

Transamerica Premier Funds Semi-Annual Report 2009

Page 45

NOTES TO FINANCIAL STATEMENTS
At June 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Transamerica Investors, Inc. (the “Company”) is a Maryland corporation registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end, management investment company. The Company is composed of eleven Funds: Transamerica Premier Balanced Fund (the “Balanced Fund”), Transamerica Premier Cash Reserve Fund (the “Cash Reserve Fund”), Transamerica Premier Diversified Equity Fund (the “Diversified Equity Fund”), Transamerica Premier Equity Fund (the “Equity Fund”), Transamerica Premier Focus Fund (the “Focus Fund”), Transamerica Premier Growth Opportunities Fund (the “Growth Opportunities Fund”), Transamerica Premier High Yield Bond Fund (the “High Yield Bond Fund”), Transamerica Premier Institutional Bond Fund (the “Institutional Bond Fund”), Transamerica Premier Institutional Diversified Equity Fund (the “Institutional Diversified Equity Fund”), Transamerica Premier Institutional Equity Fund (the “Institutional Equity Fund”), and Transamerica Premier Institutional Small Cap Value Fund (the “Institutional Small Cap Value Fund”), and (individually, a “Fund” and collectively, the “Funds”). All of the Funds are diversified except the Focus Fund, which is non-diversified under the 1940 Act. For information on investment objectives and strategies, please refer to the Funds’ prospectus.

The Company currently offers two classes of shares, either an Investor and/or an Institutional class in each of the Funds.

This report should be read in conjunction with the Funds’ current prospectus, which contains more complete information.

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

In preparing the Funds’ 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 Funds.

Multiple class operations and expenses: Income, non-class specific expenses, and realized and unrealized gains and losses, are allocated daily to each class based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.

Security valuations: The Funds value their investments at the close of the New York Stock Exchange (“NYSE”), normally 4 p.m. ET, each day the NYSE is open for business. The Funds’ investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.

Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.

Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market value.

As permitted under Rule 2a-7 of the 1940 Act, the Cash Reserve Fund values its securities at amortized cost, which with accrued interest approximates fair value.

Securities for which quotations are not readily available or whose values have been determined to be unreliable are valued at fair market value as determined in good faith by Transamerica Asset Management, Inc.’s (“TAM”) Valuation Committee under the supervision of the Board of Trustees.

The Funds are subject to the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”). FAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”) when market prices are not readily available or reliable. Valuation levels are not necessarily an indication of the risk associated with investing in those securities. The three levels of the hierarchy under FAS 157 are described below:

Level 1 — Quoted prices in active markets for identical securities.

Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc).

Level 3 — Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments).

The aggregate value by input level, at June 30, 2009, for the Funds’ investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of each Funds’ Schedules of Investments.

Transamerica Premier Funds Semi-Annual Report 2009

Page 46

NOTES TO FINANCIAL STATEMENTS
At June 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 1. (continued)

Repurchase agreements: The Funds are authorized to enter into repurchase agreements. The Funds, through their custodian, receive delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Funds will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.

Commission recapture: Transamerica Investment Management, LLC is the only sub-adviser to the Funds and to the extent consistent with the best execution and usual commission rate policies and practices, has elected to place security transactions of the Funds with broker/dealers with which Transamerica Premier Funds 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 Funds. In no event will commissions paid by the Funds be used to pay expenses that would otherwise be borne by any other funds within Transamerica Premier Funds, or by any other party.

Recaptured commissions for the period ended June 30, 2009 are included in net realized gains in the Statements of Operations and are summarized as follows:

Fund	Commissions
Balanced Fund	$	5
Diversified Equity Fund		4
Equity Fund		15
Focus Fund		1
Growth Opportunities Fund		3
Institutional Diversified Equity Fund		—	*
Institutional Equity Fund		2
Institutional Small Cap Value Fund		1

* Amount rounds to less than $1.

Securities lending: The Funds may lend securities to qualified financial institutions and brokers. The lending of Fund securities exposes the Funds to risks such as the following: (i) the borrower may fail to return the loaned securities; (ii) the borrower may not be able to provide additional collateral; (iii) the Funds may experience delays in recovery of the loaned securities or delays in access to collateral; or (iv) the Funds may experience losses related to the investment collateral. To minimize certain of these risks, loan counterparties pledge cash collateral equal to at least the market value of the securities loaned. Cash collateral received is invested in the State Street Navigator Securities Lending Trust-Prime Portfolio, a money market mutual fund registered under the 1940 Act. By lending such securities, the Funds attempt to increase their net investment income through the receipt of interest (after rebates and fees). Such income is reflected separately on the Statements of Operations. The value of loaned securities and the liability to return the cash collateral received are reflected on the Schedules of Investments and Statements of Assets and Liabilities. There were no securities on loan at June 30, 2009.

Securities transactions and investment income: Securities transactions are recorded as of the trade date. Gains and losses on sales of securities are determined on the identified cost basis for both financial statement and federal income tax purposes. Interest income and operating expenses are recorded daily on an accrual basis. Discount is recorded on a daily basis using the effective yield method, except the Cash Reserve Fund, which recognizes discount and premium on a straight-line basis. Dividend income is recorded on the ex-dividend date.

Dividend income, related to Real Estate Investment Trusts (“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.

Dividend distributions: Distributions to shareholders are recorded on the ex-dividend date and are determined in accordance with federal income tax regulations which may differ from GAAP.

Temporary guarantee program: Transamerica Premier Cash Reserve has enrolled in the U.S. Department of the Treasury’s “Treasury” Temporary Guarantee Program for Money Market Funds (the “Program”) through September 18, 2009. Under the Program, the Treasury guarantees the $1.00 dollar per share value of fund shares outstanding as of September 19, 2008, subject to certain terms and limitations “Covered Shares”.

The guarantee will be triggered if the market-based net asset value of any class percentage of Transamerica Premier Cash Reserve is less than $0.995, unless promptly cured (a “Guarantee Event”). If a Guarantee Event were to occur, Transamerica Premier Cash Reserve would be required to liquidate. Upon liquidation and subject to the availability of funds under the Program, eligible shareholders would be entitled to receive payments equal to $1.00 per Covered Share. The number of Covered Shares held by a shareholder would be equal to the lesser of (1) the number of shares owned by that shareholder on September 19, 2008 or (2) the number of shares owned by that shareholder on the date upon which the Guarantee Event occurs.

Transamerica Premier Funds Semi-Annual Report 2009

Page 47

NOTES TO FINANCIAL STATEMENTS (continued)
At June 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 1. (continued)

The initial period of the Program covered a three month period from September 19, 2008 to December 18, 2008. The program was extended from December 19, 2008 through April 30, 2009, and again from May 1, 2009 through September 18, 2009 (the “Program Extension Periods”). Participation in the Program extension periods required payment of additional fees. Transamerica Premier Cash Reserve paid to the Treasury a fee of 0.01% of its net assets as of September 19, 2008 to participate in the initial three month period of the Program and a fee of 0.015% of its net assets as of September 19, 2008 to participate in each of the Program Extension Periods. These expenses are borne by the Cash Reserve Fund without regard to any expense limitation agreement in effect.

NOTE 2. RELATED PARTY TRANSACTIONS

The Company has an Investment Advisory Agreement on behalf of each Fund (the “Agreement”) with TAM, an affiliate of AEGON N.V., a Netherlands corporation. TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) and AUSA Holding Company (23%) (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group.

Transamerica Fund Services, Inc. (“TFS”) serves as administrator and transfer agent to the Funds. TFS is also an affiliate of AEGON N.V.

Transamerica Capital, Inc. (“TCI”) is the principal underwriter and distributor of the shares for each of the Funds. TCI is an affiliate of AEGON N.V.

Transamerica Investment Management, LLC (“TIM”) is both an affiliate of the Fund and is sub-adviser of the Funds.

Certain directors and officers of the Funds are also directors and officers of TAM, TFS, TIM, and TCI.

The aggregate fee expensed to all directors who are not affiliated persons of TAM for the period ended June 30, 2009 can be found in the Statements of Operations.

As of June 30, 2009, TAM and its affiliates held the following percentages of outstanding shares:

	Outstanding
Fund	Shares %
Balanced Fund		8	%
Cash Reserve Fund		3	%
Diversified Equity Fund		3	%
Equity Fund		2	%
Focus Fund		21	%
Growth Opportunities Fund		19	%
Institutional Bond Fund		99	%
Institutional Diversified Equity Fund		26	%
Institutional Small Cap Value Fund		10	%

At the commencement of operations of each of these Funds and classes, TIM, an affiliate, invested in each Fund. As of June 30, 2009, TIM had investments in the Funds as follows:

	Market		% of Fund’s
Fund Name	Value		Net Assets
Institutional Bond Fund	$	1,202		98.74	%
Institutional Diversified Equity Bond		461		25.83
Institutional Equity Fund		493		0.66
Institutional Small Cap Value Fund		666		10.39

Transamerica Premier Funds Semi-Annual Report 2009

Page 48

NOTES TO FINANCIAL STATEMENTS (continued)
At June 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 2. (continued)

Investment advisory fees: For its services to the Funds, TAM receives a monthly fee, based on an annual percentage of the average daily net assets of each Fund. The annual fees for the following Funds are:

Fund	Advisory Fee Rate
Balanced Fund
First $1 billion		0.75	%
Over $1 billion up to $2 billion		0.72
Over $2 billion		0.70
Cash Reserve Fund		0.33
Diversified Equity Fund
First $1 billion		0.75
Over $1 billion up to $2 billion		0.72
Over $2 billion		0.70
Equity Fund
First $1 billion		0.85
Over $1 billion up to $2 billion		0.82
Over $2 billion		0.80
Focus Fund
First $1 billion		0.85
Over $1 billion up to $2 billion		0.82
Over $2 billion		0.80
Growth Opportunities Fund
First $1 billion		0.85
Over $1 billion up to $2 billion		0.82
Over $2 billion		0.80
High Yield Bond Fund		0.53
Institutional Bond Fund		0.43
Institutional Diversified Equity Fund		0.73
Institutional Equity Fund		0.73
Institutional Small Cap Value Fund		0.83

TAM has agreed to waive its fees and assume any other operating expenses (other than certain extraordinary or nonrecurring expenses) which together exceed a specified percentage of the average daily net assets of that Fund.

These waivers and subsidies may be terminated at any time without notice.

The specified percentages are as follows:

Fund	Investor Class			Institutional Class
Balanced Fund		1.10	%		—
Cash Reserve Fund		0.25	%		—
Diversified Equity Fund		1.15	%		—
Equity Fund		1.15	%		—
Focus Fund		1.40	%		—
Growth Opportunities Fund		1.40	%		—
High Yield Bond Fund		0.90	%		0.65	%
Institutional Bond Fund		—			0.45	%
Institutional Diversified Equity Fund		—			0.75	%
Institutional Equity Fund		—			0.75	%
Institutional Small Cap Value Fund		—			0.85	%

If Fund expense, excluding 12b-1 fees and certain extraordinary expenses, fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Funds may be required to pay the adviser a portion or all of the previously waived advisory fees.

There were no amounts recaptured during the period ended June 30, 2009. The following amounts available for recapture as of June 30, 2009 were as follows:

Fund	Available for Recapture at 06/30/2009
Balanced Fund	$	526
Cash Reserve Fund		223
Diversified Equity Fund		348
Equity Fund		1,342
High Yield Bond Fund		52
Institutional Bond Fund		46
Institutional Diversified Equity Fund		40
Institutional Equity Fund		90
Institutional Small Cap Value Fund		66

Transamerica Premier Funds Semi-Annual Report 2009

Page 49

NOTES TO FINANCIAL STATEMENTS (continued)
At June 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 2. (continued)

Distribution and service fees: The 12b-1 plans of distribution and related distribution contracts require the Funds to pay distribution fees to TCI as compensation for its activities, not as reimbursement for specific expenses. For the Investor Shares, there is an annual 12b-1 distribution fee of 0.25% of the average daily net assets, except for the Transamerica Premier Cash Reserve Fund. TCI agreed to waive the distribution fees until at least April 30, 2010 for the Cash Reserve Fund. The fee waivers may be terminated at any time without notice after April 30, 2010. For the Institutional Shares, there is no annual 12b-1 distribution fee. This fee is paid to securities dealers and financial intermediaries for providing personal services and account maintenance for their customers who hold such shares.

Administrative services: The Company entered into an Administrative Services Agreement with TFS for financial and legal fund administration services which include such items as compliance, expenses, financial statement and other reporting, distributions, tax returns, prospectus preparation, board of directors meeting support and other legal matters. The Company pays TFS the greater of an annual fee of 0.02% of average net assets of the Funds, or $385 allocated based pro rata on the average net assets of the Funds.

Transfer agent fees: Transfer agent fees paid to TFS on behalf of the Funds for the period ended June 30, 2009 can be found in the Statement of Operations.

Deferred Compensation Plan: Each eligible independent Fund Director may elect to participate in a non-qualified deferred compensation plan (the “Plan”) maintained by TAM. Under the Plan, such Directors may defer payment of all or a portion of their total fees earned as a Fund Director. Each Director who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in Class A shares of any series of Transamerica Funds or investment options under Transamerica Partners Funds Group II or funds of Transamerica Investors, Inc. The right of a participant to receive a distribution from the Plan of the deferred fees is a claim against the general assets of all series of the Funds.

NOTE 3. INVESTMENT TRANSACTIONS

The aggregate cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended June 30, 2009 was as follows:

			U.S.				U.S.
			Government		Proceeds		Government
Fund	Purchases		Purchases		from Sales		Sales
Balanced Fund	$	200,592	$	63,068	$	246,055	$	43,556
Diversified Equity Fund		127,987		—		108,264		—
Equity Fund		410,229		—		419,188		—
Focus Fund		42,908		—		55,843		—
Growth Opportunities Fund		60,263		—		70,580		—
High Yield Bond Fund		37,464		—		46,784		—
Institutional Bond Fund		853		461		953		286
Institutional Diversified Equity Fund		298		—		267		—
Institutional Equity Fund		66,908		—		33,946		—
Institutional Small Cap Value Fund		17,320		—		8,290		—

NOTE 4. FEDERAL INCOME TAX MATTERS

The Funds have not made any provisions for federal income or excise taxes due to their policy to distribute all of their taxable income and capital gains to their shareholders and otherwise qualify as regulated investment companies under Subchapter M of the Internal Revenue Code. Management has evaluated the Funds’ tax provisions taken for all open tax years and has concluded that no provision for income tax is required in the Funds’ financial statements. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, structured notes, foreign bonds, swaps, net operating losses and distribution reclasses.

Transamerica Premier Funds Semi-Annual Report 2009

Page 50

NOTES TO FINANCIAL STATEMENTS (continued)
At June 30, 2009
(all amounts in thousands)
(unaudited)

NOTE 5. SUBSEQUENT EVENTS

The Board of Directors approved an Agreement and Plan of Reorganization relating to the proposed reorganization of the following Funds:

Target Fund(s)	Destination Fund
Transamerica Premier Balanced Fund	Transamerica Balanced*
Transamerica Value Balanced*
Transamerica Premier Cash Reserve Fund	Transamerica Money Market*
Transamerica Premier Diversified Equity Fund	Transamerica Diversified Equity*
Transamerica Premier Institutional Diversified Equity Fund
Transamerica Science & Technology*
Transamerica Templeton Global*
Transamerica Premier Equity Fund	Transamerica Equity*
Transamerica Premier Institutional Equity Fund
Transamerica Premier Focus Fund	Transamerica Legg Mason Partners All Cap*
Transamerica Premier Growth Opportunities Fund	Transamerica Growth Opportunities*
Transamerica Premier High Yield Bond Fund	Transamerica High Yield Bond*

* These Funds are apart of the Transamerica Fund Complex

An information statement/prospectus will be sent to shareholders to discuss the transaction in detail. The reorganization is expected to take place during the fourth quarter of 2009.

The Board of Directors approved the termination and liquidation of Transamerica Premier Institutional Bond Fund and Transamerica Premier Institutional Small Cap Value Fund. These funds will be liquidated on or about September 30, 2009.

Transamerica Premier Funds Semi-Annual Report 2009

Page 51

TRANSAMERICA INVESTORS, INC.

TRANSAMERICA PREMIER BALANCED FUND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

At a meeting of the Board of Directors of Transamerica Investors, Inc. (the “Board”) held on June 4, 2009, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Premier Balanced Fund (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Directors determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of Fund shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2010. In reaching their decision, the Directors requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Directors noted that TAM and the Sub-Adviser do not manage any comparable separate accounts. The Directors also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Directors also reviewed the Sub-Adviser’s investment approach for the Fund. The Directors noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Directors determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2008. The Board noted that the Fund’s performance was below the median for its peer universe for the past 1- and 3-year periods and in line with the median for its peer universe for the past 5-year period. The Directors discussed the reasons for the underperformance, and agreed they would continue to monitor the performance of the Fund closely. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Investors, Inc. as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Directors noted that the Fund’s contractual management fee was in line with the median for its expense group and above the median for its expense universe and that the total expenses of the Fund were above the medians for its expense group and universe. Based on their review, the Directors determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Directors considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Directors also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Directors noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Directors favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Directors also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

Conclusion. After consideration of the factors described above as well as other factors, the Directors, including all of the independent members of the Board, concluded that the Investment Advisory Agreement and the Sub-Advisory Agreement, including the fees payable there under, were fair and reasonable and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement for the Fund.

TRANSAMERICA PREMIER CASH RESERVE FUND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

At a meeting of the Board of Directors of Transamerica Investors, Inc. (the “Board”) held on June 4, 2009, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Premier Cash Reserve Fund (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Directors determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of Fund shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2010. In reaching their decision, the Directors requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Directors also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Directors also reviewed the Sub-Adviser’s investment approach for the Fund. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Directors determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2008. The Board noted that the Fund’s performance was in the first quintile of its peer universe for the past 1-, 3- and 5- year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Investors, Inc. as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Directors noted that the Fund’s contractual management fee and total expenses were below the medians for its expense group and universe. Based on their review, the Directors determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Directors considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Directors considered the absence of breakpoints in the management fee schedule, and concluded the absence of breakpoints was acceptable under the circumstances. The Directors also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Directors noted that TAM would not realize soft dollar benefits from its relationship with the Fund.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Directors favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Directors also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

Conclusion. After consideration of the factors described above as well as other factors, the Directors, including all of the independent members of the Board, concluded that the Investment Advisory Agreement and the Sub-Advisory Agreement, including the fees payable there under, were fair and reasonable and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement for the Fund.

TRANSAMERICA PREMIER DIVERSIFIED EQUITY FUND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

At a meeting of the Board of Directors of Transamerica Investors, Inc. (the “Board”) held on June 4, 2009, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Premier Diversified Equity Fund (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Directors determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of Fund shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2010. In reaching their decision, the Directors requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Directors also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Directors also reviewed the Sub-Adviser’s investment approach for the Fund. The Directors noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Directors determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2008. The Board noted that the Fund’s performance was below the median for its peer universe for the past 1-year period and above the median for its peer universe for the past 3- and 5-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Investors, Inc. as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Directors noted that the Fund’s contractual management fee was below the medians for its expense group and universe and that the total expenses of the Fund were in line with the medians for its expense group and universe. Based on their review, the Directors determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Directors considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Directors also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Directors noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Directors favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Directors also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

Conclusion. After consideration of the factors described above as well as other factors, the Directors, including all of the independent members of the Board, concluded that the Investment Advisory Agreement and the Sub-Advisory Agreement, including the fees payable there under, were fair and reasonable and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement for the Fund.

TRANSAMERICA PREMIER EQUITY FUND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

At a meeting of the Board of Directors of Transamerica Investors, Inc. (the “Board”) held on June 4, 2009, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Premier Equity Fund (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Directors determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of Fund shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2010. In reaching their decision, the Directors requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Directors also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Directors also reviewed the Sub-Adviser’s investment approach for the Fund. The Directors noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Directors determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2008. The Board noted that the Fund’s performance was below the median for its peer universe for the past 1- and 3-year periods and above the median for its peer universe for the past 5-year period. The Directors discussed the reasons for the underperformance with TAM, and agreed that they would continue to monitor the performance of the Fund closely. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Investors, Inc. as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Directors noted that the Fund’s contractual management fee was above the medians for its expense group and universe and that the total expenses of the Fund were in line with the medians for its expense group and universe. Based on their review, the Directors determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Directors considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Directors also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Directors noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Directors favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Directors also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

Conclusion. After consideration of the factors described above as well as other factors, the Directors, including all of the independent members of the Board, concluded that the Investment Advisory Agreement and the Sub-Advisory Agreement, including the fees payable there under, were fair and reasonable and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement for the Fund.

TRANSAMERICA PREMIER FOCUS FUND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

At a meeting of the Board of Directors of Transamerica Investors, Inc. (the “Board”) held on June 4, 2009, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Premier Focus Fund (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Directors determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of Fund shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2010. In reaching their decision, the Directors requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Directors also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Directors also reviewed the Sub-Adviser’s investment approach for the Fund. The Directors noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Directors determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2008. The Board noted that the Fund’s performance was in line with the median for its peer universe for the past 1-year period and above the median for its peer universe for the past 3- and 5-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Investors, Inc. as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Directors noted that the Fund’s contractual management fee was below the median for its expense group and in line with median for its expense universe and that the total expenses of the Fund were in line with the median for its expense group and above the median for its expense universe. Based on their review, the Directors determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Directors considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Directors also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Directors noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Directors favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. [The Directors also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

Conclusion. After consideration of the factors described above as well as other factors, the Directors, including all of the independent members of the Board, concluded that the Investment Advisory Agreement and the Sub-Advisory Agreement, including the fees payable there under, were fair and reasonable and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement for the Fund.

TRANSAMERICA PREMIER GROWTH OPPORTUNITIES FUND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

At a meeting of the Board of Directors of Transamerica Investors, Inc. (the “Board”) held on June 4, 2009, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Premier Growth Opportunities Fund (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Directors determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of Fund shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2010. In reaching their decision, the Directors requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Directors also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Directors also reviewed the Sub-Adviser’s investment approach for the Fund. The Directors noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Directors determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2008. The Board noted that the Fund’s performance was above the median for its peer universe for the past 1-, 3- and 5- year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Investors, Inc. as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Directors noted that the Fund’s contractual management fee was below the median for its expense group and in line with median for its expense universe and that the total expenses of the Fund were in line with the median for its expense group and above the median for its expense universe. Based on their review, the Directors determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Directors considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which appropriately benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Directors also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Directors noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Directors favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Directors also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

Conclusion. After consideration of the factors described above as well as other factors, the Directors, including all of the independent members of the Board, concluded that the Investment Advisory Agreement and the Sub-Advisory Agreement, including the fees payable there under, were fair and reasonable and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement for the Fund.

TRANSAMERICA PREMIER HIGH YIELD BOND FUND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

At a meeting of the Board of Directors of Transamerica Investors, Inc. (the “Board”) held on June 4, 2009, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Premier High Yield Bond Fund (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Directors determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of Fund shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2010. In reaching their decision, the Directors requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Directors also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Directors also reviewed the Sub-Adviser’s investment approach for the Fund. The Directors noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Directors determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2008. The Board noted that the Fund’s performance was in line with the median for its peer universe for the past 1- and 5-year periods and below the median for its peer universe for the past 3- year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Investors, Inc. as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Directors noted that the Fund’s contractual management fee was below the medians for its expense group and universe and that the total expenses of the Fund were in line with the medians for its expense group and universe. Based on their review, the Directors determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Directors considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Directors considered the absence of breakpoints in the management fee schedule, and concluded the absence of breakpoints was acceptable under the circumstances. The Directors also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Directors noted that TAM would not realize soft dollar benefits from its relationship with the Fund.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Directors favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Directors also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

Conclusion. After consideration of the factors described above as well as other factors, the Directors, including all of the independent members of the Board, concluded that the Investment Advisory Agreement and the Sub-Advisory Agreement, including the fees payable there under, were fair and reasonable and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement for the Fund.

TRANSAMERICA PREMIER INSTITUTIONAL BOND FUND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

At a meeting of the Board of Directors of Transamerica Investors, Inc. (the “Board”) held on June 4, 2009, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Premier Institutional Bond Fund (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Directors determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of Fund shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2010. In reaching their decision, the Directors requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Directors also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Directors also reviewed the Sub-Adviser’s investment approach for the Fund. The Directors noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Directors determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2008. The Board noted that the Fund’s performance was above the median for its peer universe for the past 1- and 3- year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Investors, Inc. as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Directors noted that the Fund’s contractual management fee and total expenses were below the medians for its expense group and universe. Based on their review, the Directors determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Directors considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Directors considered the absence of breakpoints in the management fee schedule, and concluded the absence of breakpoints was acceptable under the circumstances. The Directors also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Directors noted that TAM would not realize soft dollar benefits from its relationship with the Fund.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Directors favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Directors also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

Conclusion. After consideration of the factors described above as well as other factors, the Directors, including all of the independent members of the Board, concluded that the Investment Advisory Agreement and the Sub-Advisory Agreement, including the fees payable there under, were fair and reasonable and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement for the Fund.

TRANSAMERICA PREMIER INSTITUTIONAL DIVERSIFIED EQUITY FUND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

At a meeting of the Board of Directors of Transamerica Investors, Inc. (the “Board”) held on June 4, 2009, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Premier Institutional Diversified Equity Fund (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Directors determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of Fund shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2010. In reaching their decision, the Directors requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Directors also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Directors also reviewed the Sub-Adviser’s investment approach for the Fund. The Directors noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Directors determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2008. The Board noted that the Fund’s performance was above the median for its peer universe for the past 1- and 3-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Investors, Inc. as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Directors noted that the Fund’s contractual management fee and total expenses were below the medians for its expense group and universe. Based on their review, the Directors determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Directors considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Directors considered the absence of breakpoints in the management fee schedule, and concluded the absence of breakpoints was acceptable under the circumstances. The Directors also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Directors noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Directors favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Directors also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

Conclusion. After consideration of the factors described above as well as other factors, the Directors, including all of the independent members of the Board, concluded that the Investment Advisory Agreement and the Sub-Advisory Agreement, including the fees payable there under, were fair and reasonable and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement for the Fund.

TRANSAMERICA PREMIER INSTITUTIONAL EQUITY FUND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

At a meeting of the Board of Directors of Transamerica Investors, Inc. (the “Board”) held on June 4, 2009, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Premier Institutional Equity Fund (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Directors determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of Fund shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2010. In reaching their decision, the Directors requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Directors also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Directors also reviewed the Sub-Adviser’s investment approach for the Fund. The Directors noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Directors determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2008. The Board noted that the Fund’s performance was below the median for its peer universe for the past 1- and 3-year periods. The Directors discussed the reasons for the underperformance with TAM, and agreed that they would continue to monitor the performance of the Fund closely. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Investors, Inc. as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Directors noted that the Fund’s contractual management fee was below the median for its expense group and in line with median for its expense universe and that the total expenses of the Fund were below the medians for its expense group and universe. Based on their review, the Directors determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Directors considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Directors considered the absence of breakpoints in the management fee schedule, and concluded the absence of breakpoints was acceptable under the circumstances. The Directors also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Directors noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Directors favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Directors also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

Conclusion. After consideration of the factors described above as well as other factors, the Directors, including all of the independent members of the Board, concluded that the Investment Advisory Agreement and the Sub-Advisory Agreement, including the fees payable there under, were fair and reasonable and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement for the Fund.

TRANSAMERICA PREMIER INSTITUTIONAL SMALL CAP VALUE FUND

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

At a meeting of the Board of Directors of Transamerica Investors, Inc. (the “Board”) held on June 4, 2009, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Premier Institutional Small Cap Value Fund (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.

Following their review and consideration, the Directors determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement would enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of Fund shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2010. In reaching their decision, the Directors requested and obtained from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Directors also carefully considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory services to be provided. The Board considered the nature and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Directors also reviewed the Sub-Adviser’s investment approach for the Fund. The Directors noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board concluded that TAM and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TAM and the Sub-Adviser for this Fund and the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Directors determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

The investment performance of the Fund. The Board examined the short and longer-term performance of the Fund, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2008. The Board noted that the Fund’s performance was in line with the median for its peer universe for the past 1-year period and above the median for its peer universe for the past 3-year period. The Board also noted that the current management team took over the Fund on October 1, 2008. The Directors agreed that they would continue to monitor the performance of the new management team closely. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.

The cost of advisory services provided and the level of profitability. The Board reviewed profitability information of TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Investors, Inc. as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund. The Directors noted that the Fund’s contractual management fee and total expenses were below the medians for its expense group and universe. Based on their review, the Directors determined that the management and sub-advisory fees of the Fund generally are appropriate in light of the services expected to be provided or procured, and the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser. In making these observations and determinations, the Board reviewed comparative information provided by Lipper.

Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Directors considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Directors considered the absence of breakpoints in the management fee schedule, and concluded the absence of breakpoints was acceptable under the circumstances. The Directors also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.

Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice and the best interests of the Fund and its shareholders. The Directors noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.

Other considerations. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Directors favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Directors also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund, which may result in TAM waiving fees for the benefit of shareholders.

Conclusion. After consideration of the factors described above as well as other factors, the Directors, including all of the independent members of the Board, concluded that the Investment Advisory Agreement and the Sub-Advisory Agreement, including the fees payable there under, were fair and reasonable and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement for the Fund.

Transamerica Premier Funds

Investment Adviser

Transamerica Asset Management, Inc.
570 Carillon Parkway
St. Petersburg, FL 33716

Distributor

Transamerica Capital, Inc.
4600 South Syracuse Street
Denver, CO 80237

Custodian

State Street Bank & Trust Company
200 Clarendon Street
Boston, MA 02116

Transfer Agent

Transamerica Fund Services, Inc.
570 Carillon Parkway
St. Petersburg, Florida 33716

PROXY VOTING POLICIES AND PROCEDURES

A description of the Transamerica Premier Funds’ proxy voting policies and procedures is available in the Statement of Additional Information of the Funds, available without charge upon request by calling 1-800-892-7587 (toll free) or on the Securities and Exchange Commission (SEC) website www.sec.gov.

In addition, the Funds are required to file SEC Form N-PX, with their complete proxy voting records for the 12 months ended June 30th no later than August 31st of each year. The Form is available without charge: (1) from the Funds, upon request by calling 1-800-892-7587; and (2) on the SEC’s website at www.sec.gov.

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarter of each fiscal year on Form N-Q which is available on the SEC website at www.sec.gov. The Funds’ Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER DOCUMENTS

Every year, we send shareholders informative materials such as the Transamerica Premier Funds Annual Report, the Transamerica Premier Funds Prospectus, and other required documents that keep you informed regarding your funds.

Transamerica Premier Funds will only send one piece per mailing address, a method that saves your funds money by reducing mailing and printing costs. We will continue to do this unless you tell us not to. To elect to receive individual mailings, simply call a Transamerica Premier Funds Customer Service Representative; toll free, at 1-800-892-7587, 8:00 a.m. to 7:00 p.m. Eastern Time, Monday — Friday. Your request will take effect within 30 days.

Transamerica Fund Services, Inc.
P.O. BOX 219427
Kansas City, MO 64121-9427

This report must be preceded or accompanied by a current prospectus that contains complete information about Transamerica Premier Funds including charges and expenses and other important facts. Investors should carefully consider their investment objectives and risks, along with a product’s charges and expenses, before investing. Please read the prospectus carefully before investing

This report is for the information of the shareholders of Transamerica Premier Funds.

Transamerica Capital, Inc., Distributor
1-800-89-ASK-US (1-800-892-7587)
www.transamericafunds.com
e-mail: PremierFunds@Transamerica.com

TPF 577-0209

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