Transamerica Launches Two Responsible Investing Bond Funds
Transamerica announces the launches of the Transamerica Sustainable Bond fund and the Transamerica High Yield ESG fund, two responsible investing bond mutual funds. The funds aim to meet investors’ growing demand for responsible investments that emphasize environmental, social, and governance (ESG) factors in their principles and practices. Transamerica Asset Management, Inc. has selected Aegon USA Investment Management, LLC as sub-adviser for both funds.
Transamerica segments responsible investing into categories based on the level of emphasis on ESG considerations. Transamerica categorizes the Transamerica Sustainable Bond fund as a SustainabilityThemed strategy. Sustainability-Themed funds utilize a thematic approach to focus on issuers aligned with sustainability megatrends in an effort to generate competitive returns over the long term. Transamerica categorizes the Transamerica High Yield ESG fund as a Best-in-Class ESG strategy. Funds in this category pursue financial returns by using a best-in-class selection methodology to invest in companies with more favorable environmental, social, and governance characteristics, while minimizing exposure to companies with less favorable ESG qualities.
The Transamerica Sustainable Bond fund seeks to provide high total return through a combination of current income and capital appreciation. The fund expands on Aegon USA Investment Management, LLC’s extensive multi-sector fixed income capabilities and invests in a broad array of fixed income securities that align with long-term, sustainability initiatives. Through a proprietary sustainability assessment framework, the fund seeks to provide long-term value to shareholders, while contributing to a more sustainable global economy. The Transamerica Sustainable Bond fund utilizes positive screening to select investments for the portfolio.
The Transamerica High Yield ESG fund seeks a high level of current income. The fund expands on the existing high-yield platform of Aegon USA Investment Management, LLC and is built on its proprietary ESG research framework. Utilizing a best-in-class selection methodology, the fund strives to maximize the portfolio’s ESG risk/reward profile. The Transamerica High Yield ESG fund primarily focuses on positive selection of investments with favorable ESG characteristics, while minimizing exposure to companies with less favorable ESG qualities.
“Transamerica recognizes that a large and growing number of investors are seeking to incorporate ESG strategies into their long-term financial goals,” said Tom Wald, Chief Investment Officer for
Transamerica Asset Management, Inc. “In launching these funds, we are excited to be partnering with Aegon USA Investment Management, LLC who has a strong history of both implementing ESG criteria and applying expert credit analysis.”
As a manager of managers, Transamerica Asset Management, Inc. appointed Aegon USA Investment Management, LLC as sub-adviser for the funds because of its extensive experience in and deep understanding of responsible investing within fixed income markets. Through a research-intensive process, Aegon USA Investment Management, LLC combines a global, top-down analysis of the macroeconomic and interest rate environment with proprietary, comprehensive, bottom-up research.
“We see an increasing investor focus on responsible investing as a means to support a better world for current and future generations,” continued Mr. Wald. “These funds will seek to both meet that focus and provide competitive investment returns.”
With the addition of these two new funds, Transamerica Asset Management, Inc. increases its wide array of mutual funds, variable annuity portfolios, and exchange-traded funds totaling assets of more than $77 billion as of June 30, 2020.
The Transamerica Sustainable Bond fund and the Transamerica High Yield ESG fund will initially be available as Class I and Class I2 shares.
With a history that dates back more than 100 years, Transamerica is recognized as a leading provider of life insurance, retirement and investment solutions, serving millions of customers throughout the United States. Recognizing the necessity of health and wellness during peak working life, Transamerica’s dedicated professionals work to help people take the steps necessary to live better today so they can worry less about tomorrow. Transamerica serves nearly every customer segment, providing a broad range of quality life insurance and investment products, individual and group pension plans, as well as asset management services. In 2019, Transamerica fulfilled its promises to customers, paying more than $50 billion in insurance, retirement, and annuity claims and benefits, including return of annuity premiums paid by the customer. Transamerica’s corporate headquarters is located in Baltimore, Maryland, with other major operations in Cedar Rapids, Iowa. Transamerica is part of the Aegon group of companies. Based in the Netherlands, Aegon is one of the world’s largest providers of life insurance, pension solutions and asset management products, operating in more than 20 markets worldwide. For the full year of 2019, Aegon managed over $1 trillion in revenue generating investments. For more information, please visit www.transamerica.com.
About Transamerica Asset Management, Inc.
Transamerica Asset Management, Inc. is an SEC-registered investment adviser. The funds advised and sponsored by Transamerica Asset Management, Inc. include Transamerica Funds, Transamerica Series Trust and DeltaShares® exchangetraded funds. Transamerica Asset Management, Inc. has total assets under management of over $77 billion as of June 30, 2020, and is an indirect wholly owned subsidiary of Aegon N.V., an international life insurance, pension, and asset management company. Aegon USA Investment Management, LLC is an affiliate of Transamerica Asset Management, Inc.
About Aegon USA Investment Management
Aegon USA Investment Management is an active investment manager and part of Aegon Asset Management, the global investment management brand of Aegon N.V. Investors worldwide entrust Aegon Asset Management to manage approximately $408 billion on their behalf, as of June 30, 2020. Aegon Asset Management is comprised of Aegon USA Investment Management, LLC, Aegon USA Realty Advisors, LLC, Aegon Asset Management UK plc, all three of which are
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 go to www.transamerica.com or contact your financial professional to obtain a prospectus or, if available, a summary prospectus containing this information. Please read it carefully before investing.
Applying the sub-adviser’s ESG criteria to its investment analysis for a Fund may impact the subadviser’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.
The value of fixed income securities generally goes down when interest rates rise, and therefore the value of your investment in the Funds 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.
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 Funds’ exposure to the risks described in the Funds’ prospectuses will likely increase. As a result, whether or not the Funds invest in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Funds’ investments may be negatively affected.
Transamerica Funds are advised by Transamerica Asset Management, Inc. (TAM) and distributed by Transamerica Capital, Inc. (TCI), member of FINRA.
Aegon USA Investment Management, LLC is an affiliate of Aegon companies. Transamerica companies are part of the Aegon group.
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