Transamerica Asset Management, Inc. 1801 California Street, Suite 5200 Denver, Colorado 80202 | ||
January 25, 2017
VIA EDGAR CORRESPONDENCE
Mr. Keith A. Gregory
United States Securities and Exchange Commission
Division of Investment Management
100 F Street, NE
Washington, DC 20549-0102
Re: | Transamerica Funds (the Registrant) |
(File Nos. 033-02659; 811-04556)
Dear Mr. Gregory:
On behalf of the Registrant, we are filing this letter via the EDGAR system to respond to a request from the Staff in connection with the Registrants filing with the Securities and Exchange Commission on December 21, 2016 of Post-Effective Amendment No. 240 filed under Rule 485(a) of the Securities Act of 1933, as amended, and Post-Effective Amendment No. 241 under the Investment Company Act of 1940, as amended, to the Registrants Registration Statement on Form N-1A (Accession Number: 0001193125-16-800650) (the Amendment). The Amendment was filed to provide updated disclosure related to a sub-adviser change for Transamerica Small/Mid Cap Value as well as to provide material disclosure updates for Transamerica Multi-Manager Alternative Strategies Portfolio. The Amendment was also filed to register Advisor Class shares for nine existing series of the Registrant: Transamerica Asset Allocation Conservative Portfolio, Transamerica Asset Allocation Growth Portfolio, Transamerica Asset Allocation Moderate Growth Portfolio, Transamerica Asset Allocation Moderate Portfolio, Transamerica Dynamic Allocation, Transamerica Dynamic Income, Transamerica International Small Cap Value, Transamerica Multi-Managed Balanced and Transamerica Multi-Manager Alternative Strategies Portfolio (each individual series a Fund). The Staffs request was conveyed to the Registrant by telephone conversations on December 27, 2016, December 29, 2016 and January 9, 2017.
The Staff requested that the Registrant provide, via EDGAR Correspondence, the information required by Form N-1A in the Annual Fund Operating Expenses section of the prospectuses, including all line items, footnotes and an expense Example for each Fund. The Registrant furnishes the requested information below.
Please direct any comments or questions concerning this Correspondence filing to the undersigned at 774-259-8048.
Very truly yours,
Cathleen M. Livingstone
Manager, Registered Products and Distribution
Transamerica Asset Management, Inc.
RETAIL FUNDS PROSPECTUS (CLASSES A, B, C, I, R1 AND R6)
TRANSAMERICA MULTI-MANAGER ALTERNATIVE STRATEGIES PORTFOLIO
Fee Table: | ||||||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||||||
Class: | A | C | I | R1 | R6 | |||||
Management fees1 |
0.22% |
0.22% |
0.22% |
0.22% |
0.22% | |||||
Distribution and service (12b-1) fees |
0.25% |
1.00% |
0.00% |
0.50% |
0.00% | |||||
Other expenses |
0.23% |
0.23% |
0.16% |
0.21%2 |
0.06% | |||||
Acquired fund fees and expenses |
1.34% |
1.34% |
1.34% |
1.34% |
1.34% | |||||
Total annual fund operating expenses3 |
2.04% |
2.79% |
1.72% |
2.27% |
1.62% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 | Other expenses for Class R1 shares are based on estimates for the current fiscal year. |
3 | Total annual 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. |
Expense Example:
If the shares are redeemed at the end of each period: | ||||||||||||||
1 year | 3 years | 5 years | 10 years | |||||||||||
Class A |
$746 | $1,154 | $1,588 | $2,789 | ||||||||||
Class C |
$382 | $ 865 | $1,474 | $3,119 | ||||||||||
Class I |
$175 | $ 542 | $ 933 | $2,030 | ||||||||||
Class R1 |
$230 | $ 709 | $1,215 | $2,605 | ||||||||||
Class R6 |
$165 | $ 511 | $ 881 | $1,922 | ||||||||||
If the shares are not redeemed: | ||||||||||||||
1 year | 3 years | 5 years | 10 years | |||||||||||
Class A |
$746 | $1,154 | $1,588 | $2,789 | ||||||||||
Class B |
$282 | $ 865 | $1,474 | $3,119 | ||||||||||
Class C |
$175 | $ 542 | $ 933 | $2,030 | ||||||||||
Class I |
$230 | $ 709 | $1,215 | $2,605 | ||||||||||
Class R6 |
$165 | $ 511 | $ 881 | $1,922 |
TRANSAMERICA SMALL/MID CAP VALUE
Fee Table: |
| |||||||||||||||||||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||||||||||||||||||||
Class: | A | B | C | I | R1 | R6 | ||||||||||||||||||
Management fees1 |
0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | ||||||||||||||||||
Distribution and service (12b-1) fees |
0.25% | 1.00% | 1.00% | 0.00% | 0.50% | 0.00% | ||||||||||||||||||
Other expenses |
0.28% | 0.28% | 0.21% | 0.17% | 0.22%2 | 0.07% | ||||||||||||||||||
Total annual fund operating expenses |
1.31% | 2.06% | 1.99% | 0.95% | 1.50% | 0.85% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 | Other expenses for Class R1 shares are based on estimates for the current fiscal year. |
Expense Example:
If the shares are redeemed at the end of each period: | ||||||||||||
1 year | 3 years | 5 years | 10 years | |||||||||
Class A |
$676 | $942 | $1,229 | $2,042 | ||||||||
Class B |
$709 | $946 | $1,208 | $2,197 | ||||||||
Class C |
$302 | $624 | $1,073 | $2,317 | ||||||||
Class I |
$ 97 | $303 | $ 525 | $1,166 | ||||||||
Class R1 |
$153 | $474 | $ 818 | $1,791 | ||||||||
Class R6 |
$ 87 | $271 | $ 471 | $1,049 | ||||||||
If the shares are not redeemed: | ||||||||||||
1 year | 3 years | 5 years | 10 years | |||||||||
Class A |
$676 | $942 | $1,229 | $2,042 | ||||||||
Class B |
$209 | $646 | $1,108 | $2,197 | ||||||||
Class C |
$202 | $624 | $1,073 | $2,317 | ||||||||
Class I |
$ 97 | $303 | $ 525 | $1,166 | ||||||||
Class R1 |
$153 | $474 | $ 818 | $1,791 | ||||||||
Class R6 |
$ 87 | $271 | $ 471 | $1,049 |
CLASS I2 PROSPECTUS
TRANSAMERICA SMALL/MID CAP VALUE
Fee Table: | ||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||
Management fees1 |
0.78% | |
Distribution and service (12b-1) fees |
None | |
Other expenses |
0.07% | |
Total annual fund operating expenses |
0.85% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
Expense Example:
1 year | 3 years | 5 years | 10 years | |||
$106 |
$331 | $574 | $1,271 |
ADVISOR CLASS PROSPECTUS
TRANSAMERICA ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Fee Table: | ||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||
Class: | Advisor | |||||
Management fees1 |
0.12% | |||||
Distribution and service (12b-1) fees |
None | |||||
Other expenses2 |
0.23% | |||||
Acquired fund fees and expenses |
0.74% | |||||
Total annual fund operating expenses |
1.09% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 | Other expenses are based on estimates for the current fiscal year. |
Expense Example:
1 year | 3 years | 5 years | 10 years | |||
$111 |
$347 | $601 | $1,329 |
TRANSAMERICA ASSET ALLOCATION GROWTH PORTFOLIO
Fee Table: |
| |||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||||
Class: | Advisor | |||||||
Management fees1 |
0.12% | |||||||
Distribution and service (12b-1) fees |
None | |||||||
Other expenses2 |
0.23% | |||||||
Acquired fund fees and expenses |
0.92% | |||||||
Total annual fund operating expenses |
1.27% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 | Other expenses are based on estimates for the current fiscal year. |
Expense Example:
1 year | 3 years | 5 years | 10 years | |||
$129 |
$403 | $697 | $1,534 |
TRANSAMERICA ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Fee Table: | ||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||
Class: | Advisor | |||||
Management fees1 |
0.12% | |||||
Distribution and service (12b-1) fees |
None | |||||
Other expenses2 |
0.22% | |||||
Acquired fund fees and expenses |
0.83% | |||||
Total annual fund operating expenses |
1.17% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 | Other expenses are based on estimates for the current fiscal year. |
Expense Example:
1 year | 3 years | 5 years | 10 years | |||
$119 |
$372 | $644 | $1,420 |
TRANSAMERICA ASSET ALLOCATION MODERATE PORTFOLIO
Fee Table: | ||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||
Class: | Advisor | |||||
Management fees1 |
0.12% | |||||
Distribution and service (12b-1) fees |
None | |||||
Other expenses2 |
0.22% | |||||
Acquired fund fees and expenses |
0.77% | |||||
Total annual fund operating expenses |
1.11% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 | Other expenses are based on estimates for the current fiscal year. |
Expense Example:
1 year | 3 years | 5 years | 10 years | |||
$113 |
$353 | $612 | $1,352 |
TRANSAMERICA DYNAMIC ALLOCATION
Fee Table: | ||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||
Class: | Advisor | |||||
Management fees1 |
0.58% | |||||
Distribution and service (12b-1) fees |
None | |||||
Other expenses2 |
0.54% | |||||
Acquired fund fees and expenses |
0.22% | |||||
Total annual fund operating expenses |
1.34% | |||||
Fee waiver and/or expense reimbursement3 |
0.27% | |||||
Total annual fund operating expenses after fee waiver and/or expense reimbursement |
|
1.07% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 | Other expenses are based on estimates for the current fiscal year. |
3 | Contractual arrangements have been made with the funds investment manager, Transamerica Asset Management, Inc. (TAM), through March 1, 2018 to waive fees and/or reimburse fund expenses to the extent that total annual fund operating expenses exceed 0.85% for Advisor Class shares, excluding, as applicable, acquired fund fees and expenses, interest, taxes, brokerage commissions, dividend and interest expenses on securities sold short, extraordinary expenses and other expenses not incurred in the ordinary course of the funds business. These arrangements cannot be terminated prior to March 1, 2018 without the Board of Trustees consent. TAM is permitted to recapture amounts waived and/or reimbursed to a class during any of the previous 36 months if the class total annual fund operating expenses have fallen to a level below the limits described above. In no case will TAM recapture any amount that would result, on any particular business day of the fund, in the class total annual fund operating expenses exceeding the applicable limits described above or any other lower limit then in effect. |
Expense Example:
1 year | 3 years | 5 years | 10 years | |||
$109 |
$398 | $708 | $1,589 |
TRANSAMERICA DYNAMIC INCOME
Fee Table: | ||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||
Class: | Advisor | |||||
Management fees1 |
0.50% | |||||
Distribution and service (12b-1) fees |
None | |||||
Other expenses2 |
0.25% | |||||
Acquired fund fees and expenses |
0.41% | |||||
Total annual fund operating expenses |
1.16% | |||||
Fee waiver and/or expense reimbursement3 |
0.08% | |||||
Total annual fund operating expenses after fee waiver and/or expense reimbursement |
|
1.08% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 | Other expenses are based on estimates for the current fiscal year. |
3 | Contractual arrangements have been made with the funds investment manager, Transamerica Asset Management, Inc. (TAM), through March 1, 2018 to waive fees and/or reimburse fund expenses to the extent that total annual fund operating expenses exceed 0.67% for Advisor Class shares, excluding, as applicable, acquired fund fees and expenses, interest, taxes, brokerage commissions, dividend and interest expenses on securities sold short, extraordinary expenses and other expenses not incurred in the ordinary course of the funds business. These arrangements cannot be terminated prior to March 1, 2018 without the Board of Trustees consent. TAM is permitted to recapture amounts waived and/or reimbursed to a class during any of the previous 36 months if the class total annual fund operating expenses have fallen to a level below the limits described above. In no case will TAM recapture any amount that would result, on any particular business day of the fund, in the class total annual fund operating expenses exceeding the applicable limits described above or any other lower limit then in effect. |
Expense Example:
1 year | 3 years | 5 years | 10 years | |||
$110 |
$361 | $631 | $1,402 |
TRANSAMERICA INTERNATIONAL SMALL CAP VALUE
Fee Table: | ||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||
Class: | Advisor | |||||
Management fees1 |
0.93% | |||||
Distribution and service (12b-1) fees |
None | |||||
Other expenses2 |
0.28% | |||||
Total annual fund operating expenses |
1.21% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 |
Other expenses are based on estimates for the current fiscal year. |
Expense Example:
1 year | 3 years | 5 years | 10 years | |||
$123 |
$384 | $665 | $1,466 |
TRANSAMERICA MULTI-MANAGED BALANCED
Fee Table: | ||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||
Class: | Advisor | |||||
Management fees1 |
0.65% | |||||
Distribution and service (12b-1) fees |
None | |||||
Other expenses2 |
0.26% | |||||
Total annual fund operating expenses |
0.91% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 | Other expenses are based on estimates for the current fiscal year. |
Expense Example:
1 year | 3 years | 5 years | 10 years | |||
$93 |
$290 | $504 | $1,120 |
TRANSAMERICA MULTI-MANAGER ALTERNATIVE STRATEGIES PORTFOLIO
Fee Table: | ||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||
Class: | Advisor | |||||
Management fees1 |
0.22% | |||||
Distribution and service (12b-1) fees |
None | |||||
Other expenses2 |
0.25% | |||||
Acquired fund fees and expenses |
1.34% | |||||
Total annual fund operating expenses3 |
1.81% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 | Other expenses are based on estimates for the current fiscal year. |
3 | Total annual 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. |
Expense Example:
1 year | 3 years | 5 years | 10 years | |||
$184 |
$569 | $980 | $2,127 |
TRANSAMERICA SMALL/MID CAP VALUE
Fee Table: | ||||||
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||
Class: | Advisor | |||||
Management fees1 |
0.78% | |||||
Distribution and service (12b-1) fees |
None | |||||
Other expenses2 |
0.26% | |||||
Total annual fund operating expenses |
1.04% |
1 | Management fees have been restated to reflect the combination of investment advisory and administrative services fees under one agreement and the funds payment of a single management fee effective March 1, 2016. |
2 | Other expenses are based on estimates for the current fiscal year. |
Expense Example:
1 year | 3 years | 5 years | 10 years | |||
$106 |
$331 | $574 | $1,271 |
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