Responsible investing
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
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.
Analyze
Step 1: Quantitative Analysis
We apply quantitative metrics to review strategies delivering competitive returns, style consistency, and sound risk mitigation.
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.
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.
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
1 “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.
Invest in a more sustainable world
Learn more about Transamerica's approach to responsible investing and the funds we offer.
The five categories
Responsible investment strategies seek to construct portfolios that emphasize ESG considerations. We segment these strategies into five primary categories.
Transamerica's diversified fund lineup can help tailor portfolios to meet specific goals.
Excluded
Excluded
Excluded investing utilizes negative screening to avoid certain sectors, companies, or practices based on specific criteria.
ESG Included
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
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
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
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 High Yield ESG
The fund seeks a high level of current income by investing in issuers that have strong and improving ESG profiles identified through a bottom-up research process and a proprietary high-yield platform.
Transamerica Sustainable Bond
By using a thematic approach aligned with long-term sustainable megatrends, the fund seeks to provide high total return through a combination of current income and capital appreciation while contributing to a more sustainable global economy.
Transamerica Sustainable Equity Income
A high-conviction portfolio focusing on companies that offer positive sustainability characteristics, the fund seeks total return gained from the combination of dividend yield, growth of dividends, and capital appreciation.
Transamerica Large Core ESG
An enhanced index investment strategy that seeks capital appreciation by quantitatively assessing the attractiveness of companies based on numerous factors relevant to its life-cycle category.
Transamerica Sustainable Growth Equity
A concentrated, large-cap portfolio seeking to maximize long-term growth by investing in well-valued, fundamentally strong businesses found through a proprietary ESG rating process.
Transamerica International Sustainable Equity
Seeks long-term capital appreciation by investing in attractive ESG-adherent opportunities internationally and across regions, industries, and market capitalizations.
Living well tomorrow starts with the habits we practice today.
Call our sales desk to explore a variety of mutual funds designed to pursue a variety of goals.
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.
During periods of market disruption (e.g. COVID-19), which may trigger trading halts, the fund's exposure to the risks described in the prospectus will likely increase. As a result, 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.
Equity funds invest in equity securities, which include common stock, preferred stock, and convertible securities. Because such securities represent ownership in a corporation, they tend to be more volatile than fixed income or debt securities, which do not represent ownership.
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.
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.