A growing interest

Investors today are demanding more. It’s no longer just about the returns they generate. It’s also about the good their money can do. They want to live in a sustainable world, one where responsible investing embraces assets that consider their values and account for a much bigger picture.

That's why it's no surprise that by 2025, environmental, social, and governance (ESG) funds are expected to comprise half of all professionally managed investments.1

Responsible investing: See the big picture

Canyon

IMPORTANT INFORMATION

Responsible investing is qualitative and subjective by nature, and there is no guarantee that the criteria utilized, or judgement exercised, by any company will reflect the beliefs or values of any one particular investor. Responsible investing norms differ by region. There is no assurance that the responsible investing strategy and techniques employed will be successful. Investors should consult their investment professional prior to making an investment decision.

The Investor First approach

The strategies Transamerica offers within the responsible investing framework must also adhere to our Investor FirstSM Process, the ongoing screening process Transamerica Asset Management (TAM), Inc., applies to hold managers to the highest of standards through a multitude of quantitative and qualitative criteria.

Quantitative Analysis

Analyze

Step 1: Quantitative Analysis

We apply quantitative metrics to identify strategies delivering competitive returns, style consistency, and sound risk mitigation.

Qualitative Analysis

Evaluate

Step 2: Qualitative analysis

With a forward-looking approach, we analyze the manager's investment philosophy, portfolio construction process, organizational structure, and responsible investing process.

Investment Manager Recommendation

Select

Step 3: Investment manager recommendation

Through an objective, evidence-based, and collaborative process, these quantitative and qualitative analyses are combined to form a recommendation that is vetted by our Investment and Investment Risk committees.

Continuous Monitoring

Monitor

Step 4: Continuous monitoring

Fund managers are continuously monitored on a daily, weekly, monthly, and quarterly basis for investment performance, adherence to style and responsible investing framework, compliance with objectives, and other important criteria. Managers not meeting expectations are subject to replacement.

IMPORTANT INFORMATION

“Advancing ESG Investing: A Holistic Approach for Investment Management Firms,” Deloitte LLP, Harvard Law School Forum on Corporate Governance, March 11, 2020.

The Investor FirstSM Process is our ongoing commitment to making sure you have access to the investments you deserve from some of the best asset managers in the industry. 

This process only applies to funds advised by Transamerica Asset Management, Inc. (TAM) and not to non-proprietary funds. TAM is an SEC registered investment adviser.

Excluded

Excluded investing utilizes negative screening to avoid certain sectors, companies, or practices based on specific criteria.

ESG Included

ESG included investments seek to assess and incorporate the effects of ESG factors as part of their analysis utilized for portfolio security selection.

ESG Advanced

ESG advanced investing applies ESG rankings and analysis as a primary means of security selection and portfolio structuring. It uses proprietary research to categorize holdings as belonging to specific ESG categories.

Sustainable Focused

Sustainable-focused investments use positive screening to construct the portfolio and identify securities of companies believed to align with sustainability themes and challenges, such as climate change.

Impact

Impact investing pursues measurable positive social and environmental impact, steering capital toward investments that support a sustainable future — all while seeking financial returns.

Transamerica Responsible Investing Funds

Designed to contribute to a more sustainable future while seeking to generate favorable long-term returns.

Transamerica Sustainable Equity Income

Seeks total return gained from the combination of dividend yield, growth of dividends, and capital appreciation.

Transamerica High Yield ESG

Seeks a high level of current income.

Transamerica Sustainable Bond

Seeks to provide high total return through a combination of current income and capital appreciation.

IMPORTANT INFORMATION

Mutual funds are subject to market risk, including the loss of principal. Past performance is not indicative of future results.

Mutual funds are sold by prospectus. Before investing, consider the funds' investment objectives, risks, charges, and expenses. This and other important information is contained in the prospectus. Please click
here, or contact your financial professional to obtain a prospectus or, if available, a summary prospectus containing this information. Please read it carefully before investing.

The COVID-19 pandemic has caused substantial market disruption and dislocation around the world including the U.S. During periods of market disruption, which may trigger trading halts, the fund’s exposure to the risks described elsewhere in the prospectus will likely increase. As a result, whether or not the fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the fund’s investments may be negatively affected.

The value of fixed income securities generally goes down when interest rates rise, and therefore the value of your investment in the fund may also go down. High-yield bonds tend to be volatile and more susceptible to adverse events, credit downgrades, and negative sentiments. Fixed-income securities are subject to risks including credit risk, interest rate risk, counterparty risk, prepayment risk, extension risk, valuation risk, and liquidity risk. These risks are described in more detail in the prospectus. Dividend income may vary depending on market performance and is not guaranteed. A company's future ability to pay dividends may be limited. Focused funds are less diversified than other mutual funds; therefore, the performance of each holding in a focused fund has a greater impact upon the overall portfolio, which increases the risks associated with investing in the fund. Value investing carries the risk that the market will not recognize a security's intrinsic value for a long time or that a stock considered undervalued is actually appropriately priced.

Applying the sub-adviser’s ESG criteria to its investment analysis for the fund may impact the sub-adviser’s investment decisions as to securities of certain issuers and therefore the fund may forgo some investment opportunities available to funds that do not use ESG criteria. Securities of companies with what are defined by the sub-adviser as having favorable ESG characteristics may shift into and out of favor depending on market and economic conditions, and the fund’s performance may at times be better or worse than the performance of similar funds that do not use ESG criteria or that apply different ESG criteria. ESG is not a uniformly defined characteristic and applying ESG criteria involves a subjective assessment. ESG ratings and assessments of issuers can vary across third-party data providers.

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.

Transamerica Funds are advised by Transamerica Asset Management, Inc. (TAM) and distributed by Transamerica Capital, Inc. (TCI), a member of FINRA. 1801 California St., Suite 5200, Denver, CO 80202.