Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Transamerica Series Trust:
In planning and performing our audits of the financial statements of Transamerica Series Trust (the “Trust”) (comprising, respectively, Transamerica 60/40 Allocation VP, Transamerica Aegon High Yield Bond VP, Transamerica Aegon Sustainable Equity Income VP, Transamerica Aegon U.S. Government Securities VP, Transamerica American Funds Managed Risk VP, Transamerica BlackRock Global Real Estate Securities VP, Transamerica BlackRock Government Money Market VP, Transamerica BlackRock iShares Active Asset Allocation – Conservative VP, Transamerica BlackRock iShares Active Asset Allocation – Moderate Growth VP, Transamerica BlackRock iShares Active Asset Allocation – Moderate VP, Transamerica BlackRock iShares Dynamic Allocation – Balanced VP, Transamerica BlackRock iShares Dynamic Allocation – Moderate Growth VP, Transamerica BlackRock iShares Edge 40 VP, Transamerica BlackRock iShares Edge 50 VP, Transamerica BlackRock iShares Edge 75 VP, Transamerica BlackRock iShares Edge 100 VP, Transamerica BlackRock Tactical Allocation VP, Transamerica Goldman Sachs 70/30 Allocation VP, Transamerica International Focus VP, Transamerica Janus Balanced VP, Transamerica Janus Mid-Cap Growth VP, Transamerica JPMorgan Asset Allocation – Conservative VP, Transamerica JPMorgan Asset Allocation – Growth VP, Transamerica JPMorgan Asset Allocation – Moderate Growth VP, Transamerica JPMorgan Asset Allocation – Moderate VP, Transamerica JPMorgan Core Bond VP, Transamerica JPMorgan Enhanced Index VP, Transamerica JPMorgan International Moderate Growth VP, Transamerica JPMorgan Mid Cap Value VP, Transamerica JPMorgan Tactical Allocation VP, Transamerica Rothchild & Co Large Cap Value VP, Transamerica Madison Diversified Income VP, Transamerica Managed Risk – Balanced ETF VP, Transamerica Managed Risk – Conservative ETF VP, Transamerica Managed Risk – Growth ETF VP, Transamerica Market Participation Strategy VP, Transamerica Morgan Stanley Capital Growth VP, Transamerica Morgan Stanley Global Allocation Managed Risk – Balanced VP, Transamerica Morgan Stanley Global Allocation VP, Transamerica MSCI EAFE Index VP, Transamerica Multi-Managed Balanced VP, Transamerica PIMCO Tactical – Balanced VP, Transamerica PIMCO Tactical – Conservative VP, Transamerica PIMCO Tactical – Growth VP, Transamerica PIMCO Total Return VP, Transamerica PineBridge Inflation Opportunities VP, Transamerica ProFund UltraBear VP, Transamerica S&P 500 Index VP, Transamerica Small/Mid Cap Value VP, Transamerica T. Rowe Price Small Cap VP, Transamerica TS&W International Equity VP and Transamerica WMC US Growth VP (collectively, the “Funds”)) as of and for the year (or period) ended December 31, 2021, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), we considered the Trust’s internal control over financial reporting, including controls over safeguarding securities, as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-CEN, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
The management of the Trust is responsible for establishing and maintaining effective internal control over financial reporting. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls. A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of a company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.
Our consideration of the Trust’s internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily disclose all deficiencies in internal control that might be material weaknesses under standards established by the PCAOB. However, we noted no deficiencies in the Trust’s internal control over financial reporting and its operation, including controls over safeguarding securities that we consider to be a material weakness as defined above as of December 31, 2021.
This report is intended solely for the information and use of management and the Board of Trustees of the Trust and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 25, 2022
TRANSAMERICA SERIES TRUST
Supplement to the Currently Effective Prospectus
and Statement of Additional Information
* * *
Effective October 1, 2020, the third paragraph of the “Investment Manager” sub-section under the “Shareholder Information” section of the Prospectus is deleted in its entirety and replaced with the following:
TAM is directly owned by Transamerica Life Insurance Company (“TLIC”) (77%) and AUSA Holding, LLC (“AUSA”) (23%), both of which are indirect, wholly owned subsidiaries of Aegon NV. TLIC is owned by Commonwealth General Corporation (“Commonwealth”). Commonwealth and AUSA are wholly owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is wholly owned by The Aegon Trust, which is wholly owned by Aegon International B.V., which is wholly owned by Aegon NV, a Netherlands corporation, and a publicly traded international insurance group.
* * *
Effective September 30, 2020, the following is added to the “Shareholder Information” section of the Prospectus immediately after the “Investment Manager” sub-section:
Legal Proceedings
On September 30, 2020, Transamerica Asset Management, Inc. (“TAM”), the investment manager of the portfolios, entered into a settlement with the Securities and Exchange Commission (the “SEC”) relating to expense recaptures. The recaptures at issue, which TAM self-reported to the SEC, involved amounts previously voluntarily waived and/or reimbursed to four money market funds to prevent the funds from experiencing a negative yield. In some cases recaptures under the voluntary yield waiver arrangements exceeded contractual expense limits. The recaptured amounts were not reflected in the funds’ prospectus fee tables. The funds involved were Transamerica Government Money Market, Transamerica BlackRock Government Money Market VP, Transamerica Partners Government Money Market and Transamerica Partners Institutional Government Money Market. The two Transamerica Partners Government Money Market funds reorganized into Transamerica Government Money Market in October of 2017.
Under the settlement order, TAM agreed to pay affected fund investors approximately $5.3 million in disgorgement and approximately $690,000 in prejudgment interest. These amounts represent expenses incurred above the applicable expense limit (plus interest). TAM was also censured and ordered to cease and desist from committing or causing any violations of certain statutory provisions and SEC rules. The settlement order imposes no civil penalty on TAM based upon TAM having self-reported the matter, the prompt remedial steps taken by TAM, and TAM’s cooperation in the SEC staff’s investigation. The settlement order does not affect TAM’s ability to manage the portfolios.
The foregoing is only a brief summary of the settlement order. A copy of the settlement order is available on the SEC’s website at https://www.sec.gov.
* * *
Effective October 1, 2020, the fourth paragraph of the “Investment Manager” sub-section under the “Investment Management and Other Services” section of the Statement of Additional Information is deleted in its entirety and replaced with the following:
TAM is directly owned by Transamerica Life Insurance Company (“TLIC”) (77%) and AUSA Holding, LLC (“AUSA”) (23%), both of which are indirect, wholly owned subsidiaries of Aegon NV. TLIC is owned by Commonwealth General Corporation (“Commonwealth”). Commonwealth and AUSA are wholly owned by Transamerica Corporation (DE), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. Transamerica Corporation (DE) is wholly owned by The Aegon Trust, which is wholly owned by Aegon International B.V., which is wholly owned by Aegon NV, a Netherlands corporation, and a publicly traded international insurance group.
* * *
Investors Should Retain this Supplement for Future Reference
September 30, 2020
https://www.sec.gov/Archives/edgar/data/778207/000119312521263935/0001193125-21-263935-index.htm
As filed with the Securities and Exchange Commission on September 2, 2021
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-04419
TRANSAMERICA SERIES TRUST
(Exact Name of Registrant as Specified in Charter)
1801 California St., Suite 5200, Denver, Colorado 80202
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: 1-800-851-9777
Erin Nelson, Esq., 1801 California St., Suite 5200, Denver, Colorado 80202
(Name and Address of Agent for Service)
Date of fiscal year end: December 31
Date of reporting period: June 30, 2021
Transamerica BlackRock Government Money Market VP
NOTES TO FINANCIAL STATEMENTS (continued)
At June 30, 2021
(unaudited)
7. FEDERAL INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS (continued)
income tax is required in the Portfolio’s financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in relation to interest and penalties expense in Other within the Statement of Operations. The Portfolio identifies its major tax jurisdictions as U.S. Federal, the state of Colorado, and foreign jurisdictions where the Portfolio makes significant investments; however, the Portfolio is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. Distributions are determined in accordance with income tax regulations, which may differ from GAAP.
As of June 30, 2021, the approximate cost for U.S. federal income tax purposes, and the aggregate gross/net unrealized appreciation (depreciation) in the value of investments (including securities sold short and derivatives, if any) are as follows:
|
Cost |
|
Gross |
|
Gross |
|
Net Appreciation |
|
$ 860,130,324 |
|
$ — |
|
$ — |
|
$ — |
8. CUSTODY OUT-OF-POCKET EXPENSE
In December 2015, State Street, the Portfolio’s custodian, identified inconsistencies in the way in which clients were invoiced for categories of expenses, particularly those deemed out-of-pocket costs, during an 18-year period going back to 1998. The issue was the result of inaccurate billing rates that were not subsequently reviewed or adjusted. The amount of the difference in what was charged and what should have been charged, plus interest, was paid back to the Portfolio in September 2016 as a reimbursement. The amounts applicable to the Portfolio, if any, were recognized as a change in accounting estimate and is reflected as a reimbursement of custody fees. This resulted in a decrease in net expenses and an overall increase in net assets. Please reference the Financial Highlights for additional information in regards to the per share impact.
9. NEW ACCOUNTING PRONOUNCEMENT
In January 2021, the Financial Accounting Standards Board issued Accounting Standards Update No. 2021-01 (“ASU 2010-01”), “Reference Rate Reform (Topic 848)”. ASU 2021-01 is an update of ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR, regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are effective immediately through December 31, 2022, for all entities. Management is currently evaluating the implications, if any, of the additional requirements and its impact on the Portfolio’s financial statements.
10. LEGAL PROCEEDINGS
On September 30, 2020, Transamerica Asset Management, Inc. (“TAM”), the investment manager of the funds, entered into a settlement with the Securities and Exchange Commission (the “SEC”) relating to expense recaptures. The recaptures at issue, which TAM self-reported to the SEC, involved amounts previously voluntarily waived and/or reimbursed to four money market funds to prevent the funds from experiencing a negative yield. In some cases recaptures under the voluntary yield waiver arrangements exceeded contractual expense limits. The recaptured amounts were not reflected in the funds’ prospectus fee tables. The funds involved were Transamerica Government Money Market, Transamerica BlackRock Government Money Market VP, Transamerica Partners Government Money Market and Transamerica Partners Institutional Government Money Market. The two Transamerica Partners Government Money Market funds reorganized into Transamerica Government Money Market in October of 2017.
Under the settlement order, TAM agreed to pay affected fund investors approximately $5.3 million in disgorgement and approximately $690,000 in prejudgment interest. These amounts represent expenses incurred above the applicable expense limit (plus interest). TAM was also censured and ordered to cease and desist from committing or causing any violations of certain statutory provisions and SEC rules. The settlement order imposes no civil penalty on TAM based upon TAM having self-reported the matter, the prompt remedial steps taken by TAM, and TAM’s cooperation in the SEC staff’s investigation. The settlement order does not affect TAM’s ability to manage the funds.
|
Transamerica Series Trust |
|
Semi-Annual Report 2021 |
Page 16
Transamerica Legg Mason Dynamic Allocation – Balanced VP Transamerica Legg Mason Dynamic Allocation – Growth VP Transamerica QS Investors Active Asset Allocation – Conservative VP Transamerica QS Investors Active Asset Allocation – Moderate Growth VP Transamerica QS Investors Active Asset Allocation – Moderate VP
* * *
Effective on or about November 1, 2021, Transamerica Asset Management, Inc. (“TAM”) will terminate its investment sub-advisory agreement with QS Investors, LLC (“QS Investors”) with respect to Transamerica Legg Mason Dynamic Allocation – Balanced VP, Transamerica Legg Mason Dynamic Allocation – Growth VP, Transamerica QS Investors Active Asset Allocation – Conservative VP, Transamerica QS Investors Active Asset Allocation – Moderate Growth VP, and Transamerica QS Investors Active Asset Allocation – Moderate VP (each, a “portfolio; together, the “portfolios”) and will enter into a new investment sub-advisory agreement with BlackRock Investment Management, LLC (“BlackRock”) with respect to the portfolios. An information statement will be made available to investors which will provide certain information about the new sub-adviser and the terms of the new sub-advisory agreement.
In connection with the change in sub-adviser from QS Investors to BlackRock: (i) each portfolio will be renamed; (ii) each portfolio’s principal investment strategies and principal risks will be revised; (iii) each portfolio will have revised management and sub-advisory fee schedules, (iv) each portfolio will have lower expense caps; and (v) each portfolio will change its blended benchmark. These changes, which will be effective on or about November 1, 2021, are described below.
TAM will continue to serve as each portfolio’s investment manager.
Effective on or about November 1, 2021, the following information will supplement and supersede any contrary information contained in the Prospectus, Summary Prospectuses and Statement of Information, as applicable, concerning the portfolios.
* * *
Each portfolio will change its management fee schedule as described below.
TAM will receive compensation from the portfolio, calculated daily and paid monthly, at the annual rates (expressed as a percentage of the portfolio’s average daily net assets) indicated below:
First $500 million................................................................................................... 0.50%
Over $500 million up to $1 billion....................................................................... 0.49%
Over $1 billion up to $2.5 billion......................................................................... 0.4725%
Over $2.5 billion up to $3.5 billion...................................................................... 0.465%
Over $3.5 billion up to $4.5 billion...................................................................... 0.4525%
In excess of $4.5 billion......................................................................................... 0.44%
* * *
The “Annual Fund Operating Expenses” table included in the “Fees and Expenses” section of the Prospectus and Summary Prospectus is deleted in its entirety and replaced with the following:
|
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) |
||
|
Class |
Initial |
Service |
|
Management fees1 |
0.49% |
0.49% |
|
Distribution and service (12b-1) fees |
0.00% |
0.25% |
|
Other expenses2 |
0.03% |
0.03% |
|
Acquired fund fees and expenses3,4 |
0.15% |
0.15% |
|
Total annual fund operating expenses |
0.67% |
0.92% |
|
Fee waiver and/or expense reimbursement5 |
0.05% |
0.05% |
|
Total annual fund operating expenses after fee waiver and/or expense reimbursement |
0.62% |
0.87% |
1 Management fees have been restated to reflect a reduction in management fees effective November 1, 2021.
2 Other expenses for Initial Class shares are based on estimates for the current fiscal year.
3 Acquired fund fees and expenses reflect the portfolio’s pro rata share of the fees and expenses incurred by investing in other investment companies. Acquired fund fees and expenses are not included in the calculation of the ratios of expenses to average net assets shown in the Financial Highlights section of the portfolio’s prospectus.
4 Acquired fund fees and expenses have been restated for the current fiscal year.
5 The portfolio’s investment manager, Transamerica Asset Management, Inc. (“TAM”), has contractually agreed, through May 1, 2023, to waive from its management fee an amount equal to the sub-advisory fee waiver by the portfolio’s sub-adviser. Contractual arrangements have also been made with TAM, through May 1, 2023 to waive fees and/or reimburse portfolio expenses to the extent that total annual fund operating expenses exceed 0.55% for Initial Class shares and 0.80% for Service 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 portfolio’s business. These arrangements cannot be terminated prior to May 1, 2023 without the Board of Trustees’ consent. TAM is permitted to recapture amounts waived and/or reimbursed to a class during any of the 36 months from the date on which TAM waived fees and/or reimbursed expenses for the class 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 portfolio, in the class’ total annual operating expenses exceeding the applicable limits described above or any other lower limit then in effect.
The “Example” table included in the Prospectus and Summary Prospectus is deleted in its entirety and replaced with the following:
Example: This Example is intended to help you compare the cost of investing in the portfolio with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the portfolio for the time periods indicated and then redeem all shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the portfolio’s operating expenses remain the same. The Example does not reflect charges that are, or may be, imposed under your variable life insurance policy or variable annuity contract. If such charges were reflected, costs would be higher. Only the 1 year dollar amount shown below reflects TAM’s agreement to waive fees and/or reimburse fund expenses. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
|
1 year |
3 years |
5 years |
10 years |
|
Initial Class |
$63 |
$209 |
$368 |
$830 |
|
Service Class |
$89 |
$288 |
$504 |
$1,127 |
* * *
The “Annual Fund Operating Expenses” table included in the “Fees and Expenses” section of the Prospectus and Summary Prospectus is deleted in its entirety and replaced with the following:
|
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) |
||
|
Class |
Initial |
Service |
|
Management fees1 |
0.50% |
0.50% |
|
Distribution and service (12b-1) fees |
0.00% |
0.25% |
|
Other expenses2 |
0.03% |
0.03% |
|
Acquired fund fees and expenses3,4 |
0.16% |
0.16% |
|
Total annual fund operating expenses |
0.69% |
0.94% |
|
Fee waiver and/or expense reimbursement5 |
0.05% |
0.05% |
|
Total annual fund operating expenses after fee waiver and/or expense reimbursement |
0.64% |
0.89% |
1 Management fees have been restated to reflect a reduction in management fees effective November 1, 2021.
2 Other expenses for Initial Class shares are based on estimates for the current fiscal year.
3 Acquired fund fees and expenses reflect the portfolio’s pro rata share of the fees and expenses incurred by investing in other investment companies. Acquired fund fees and expenses are not included in the calculation of the ratios of expenses to average net assets shown in the Financial Highlights section of the portfolio’s prospectus.
4 Acquired fund fees and expenses have been restated for the current fiscal year.
5 The portfolio’s investment manager, Transamerica Asset Management, Inc. (“TAM”), has contractually agreed, through May 1, 2023, to waive from its management fee an amount equal to the sub-advisory fee waiver by the portfolio’s sub-adviser. Contractual arrangements have also been made with TAM, through May 1, 2023 to waive fees and/or reimburse portfolio expenses to the extent that total annual fund operating expenses exceed 0.55% for Initial Class shares and 0.80% for Service 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 portfolio’s business. These arrangements cannot be terminated prior to May 1, 2023 without the Board of Trustees’ consent. TAM is permitted to recapture amounts waived and/or reimbursed to a class during any of the 36 months from the date on which TAM waived fees and/or reimbursed expenses for the class 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 portfolio, in the class’ total annual operating expenses exceeding the applicable limits described above or any other lower limit then in effect.
The “Example” table included in the Prospectus and Summary Prospectus is deleted in its entirety and replaced with the following:
Example: This Example is intended to help you compare the cost of investing in the portfolio with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the portfolio for the time periods indicated and then redeem all shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the portfolio’s operating expenses remain the same. The Example does not reflect charges that are, or may be, imposed under your variable life insurance policy or variable annuity contract. If such charges were reflected, costs would be higher. Only the 1 year dollar amount shown below reflects TAM’s agreement to waive fees and/or reimburse fund expenses. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
|
1 year |
3 years |
5 years |
10 years |
|
Initial Class |
$65 |
$216 |
$379 |
$854 |
|
Service Class |
$91 |
$295 |
$515 |
$1,150 |
* * *
The “Annual Fund Operating Expenses” table included in the “Fees and Expenses” section of the Prospectus and Summary Prospectus is deleted in its entirety and replaced with the following:
|
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) |
||
|
Class |
Initial |
Service |
|
Management fees1 |
0.50% |
0.50% |
|
Distribution and service (12b-1) fees |
0.00% |
0.25% |
|
Other expenses |
0.03% |
0.03% |
|
Acquired fund fees and expenses2,3 |
0.12% |
0.12% |
|
Total annual fund operating expenses |
0.65% |
0.90% |
|
Fee waiver and/or expense reimbursement4 |
0.05% |
0.05% |
|
Total annual fund operating expenses after fee waiver and/or expense reimbursement |
0.60% |
0.85% |
1 Management fees have been restated to reflect a reduction in management fees effective November 1, 2021.
2 Acquired fund fees and expenses reflect the portfolio’s pro rata share of the fees and expenses incurred by investing in other investment companies. Acquired fund fees and expenses are not included in the calculation of the ratios of expenses to average net assets shown in the Financial Highlights section of the portfolio’s prospectus.
3 Acquired fund fees and expenses have been restated for the current fiscal year.
4 The portfolio’s investment manager, Transamerica Asset Management, Inc. (“TAM”), has contractually agreed, through May 1, 2023, to waive from its management fee an amount equal to the sub-advisory fee waiver by the portfolio’s sub-adviser. Contractual arrangements have also been made with TAM, through May 1, 2023 to waive fees and/or reimburse portfolio expenses to the extent that total annual fund operating expenses exceed 0.55% for Initial Class shares and 0.80% for Service 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 portfolio’s business. These arrangements cannot be terminated prior to May 1, 2023 without the Board of Trustees’ consent. TAM is permitted to recapture amounts waived and/or reimbursed to a class during any of the 36 months from the date on which TAM waived fees and/or reimbursed expenses for the class 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 portfolio, in the class’ total annual operating expenses exceeding the applicable limits described above or any other lower limit then in effect.
The “Example” table included in the Prospectus and Summary Prospectus is deleted in its entirety and replaced with the following:
Example: This Example is intended to help you compare the cost of investing in the portfolio with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the portfolio for the time periods indicated and then redeem all shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the portfolio’s operating expenses remain the same. The Example does not reflect charges that are, or may be, imposed under your variable life insurance policy or variable annuity contract. If such charges were reflected, costs would be higher. Only the 1 year dollar amount shown below reflects TAM’s agreement to waive fees and/or reimburse fund expenses. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
|
1 year |
3 years |
5 years |
10 years |
|
Initial Class |
$61 |
$203 |
$357 |
$806 |
|
Service Class |
$87 |
$282 |
$494 |
$1,103 |
* * *
The “Annual Fund Operating Expenses” table included in the “Fees and Expenses” section of the Prospectus and Summary Prospectus is deleted in its entirety and replaced with the following:
|
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) |
||
|
Class |
Initial |
Service |
|
Management fees1 |
0.50% |
0.50% |
|
Distribution and service (12b-1) fees |
0.00% |
0.25% |
|
Other expenses |
0.03% |
0.03% |
|
Acquired fund fees and expenses2,3 |
0.16% |
0.16% |
|
Total annual fund operating expenses |
0.69% |
0.94% |
|
Fee waiver and/or expense reimbursement4 |
0.05% |
0.05% |
|
Total annual fund operating expenses after fee waiver and/or expense reimbursement |
0.64% |
0.89% |
1 Management fees have been restated to reflect a reduction in management fees effective November 1, 2021.
2 Acquired fund fees and expenses reflect the portfolio’s pro rata share of the fees and expenses incurred by investing in other investment companies. Acquired fund fees and expenses are not included in the calculation of the ratios of expenses to average net assets shown in the Financial Highlights section of the portfolio’s prospectus.
3 Acquired fund fees and expenses have been restated for the current fiscal year.
4 The portfolio’s investment manager, Transamerica Asset Management, Inc. (“TAM”), has contractually agreed, through May 1, 2023, to waive from its management fee an amount equal to the sub-advisory fee waiver by the portfolio’s sub-adviser. Contractual arrangements have also been made with TAM, through May 1, 2023 to waive fees and/or reimburse portfolio expenses to the extent that total annual fund operating expenses exceed 0.55% for Initial Class shares and 0.80% for Service 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 portfolio’s business. These arrangements cannot be terminated prior to May 1, 2023 without the Board of Trustees’ consent. TAM is permitted to recapture amounts waived and/or reimbursed to a class during any of the 36 months from the date on which TAM waived fees and/or reimbursed expenses for the class 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 portfolio, in the class’ total annual operating expenses exceeding the applicable limits described above or any other lower limit then in effect.
The “Example” table included in the Prospectus and Summary Prospectus is deleted in its entirety and replaced with the following:
Example: This Example is intended to help you compare the cost of investing in the portfolio with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the portfolio for the time periods indicated and then redeem all shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the portfolio’s operating expenses remain the same. The Example does not reflect charges that are, or may be, imposed under your variable life insurance policy or variable annuity contract. If such charges were reflected, costs would be higher. Only the 1 year dollar amount shown below reflects TAM’s agreement to waive fees and/or reimburse fund expenses. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
|
1 year |
3 years |
5 years |
10 years |
|
Initial Class |
$65 |
$216 |
$379 |
$854 |
|
Service Class |
$91 |
$295 |
$515 |
$1,150 |
* * *
The “Annual Fund Operating Expenses” table included in the “Fees and Expenses” section of the Prospectus and Summary Prospectus is deleted in its entirety and replaced with the following:
|
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) |
||
|
Class |
Initial |
Service |
|
Management fees1 |
0.49% |
0.49% |
|
Distribution and service (12b-1) fees |
0.00% |
0.25% |
|
Other expenses |
0.02% |
0.02% |
|
Acquired fund fees and expenses2,3 |
0.14% |
0.14% |
|
Total annual fund operating expenses |
0.65% |
0.90% |
|
Fee waiver and/or expense reimbursement4 |
0.05% |
0.05% |
|
Total annual fund operating expenses after fee waiver and/or expense reimbursement |
0.60% |
0.85% |
1 Management fees have been restated to reflect a reduction in management fees effective November 1, 2021.
2 Acquired fund fees and expenses reflect the portfolio’s pro rata share of the fees and expenses incurred by investing in other investment companies. Acquired fund fees and expenses are not included in the calculation of the ratios of expenses to average net assets shown in the Financial Highlights section of the portfolio’s prospectus.
3 Acquired fund fees and expenses have been restated for the current fiscal year.
4 The portfolio’s investment manager, Transamerica Asset Management, Inc. (“TAM”), has contractually agreed, through May 1, 2023, to waive from its management fee an amount equal to the sub-advisory fee waiver by the portfolio’s sub-adviser. Contractual arrangements have also been made with TAM, through May 1, 2023 to waive fees and/or reimburse portfolio expenses to the extent that total annual fund operating expenses exceed 0.55% for Initial Class shares and 0.80% for Service 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 portfolio’s business. These arrangements cannot be terminated prior to May 1, 2023 without the Board of Trustees’ consent. TAM is permitted to recapture amounts waived and/or reimbursed to a class during any of the 36 months from the date on which TAM waived fees and/or reimbursed expenses for the class 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 portfolio, in the class’ total annual operating expenses exceeding the applicable limits described above or any other lower limit then in effect.
The “Example” table included in the Prospectus and Summary Prospectus is deleted in its entirety and replaced with the following:
Example: This Example is intended to help you compare the cost of investing in the portfolio with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the portfolio for the time periods indicated and then redeem all shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the portfolio’s operating expenses remain the same. The Example does not reflect charges that are, or may be, imposed under your variable life insurance policy or variable annuity contract. If such charges were reflected, costs would be higher. Only the 1 year dollar amount shown below reflects TAM’s agreement to waive fees and/or reimburse fund expenses. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
|
1 year |
3 years |
5 years |
10 years |
|
Initial Class |
$61 |
$203 |
$357 |
$806 |
|
Service Class |
$87 |
$282 |
$494 |
$1,103 |
* * *
The following information will be added alphabetically to the sub-section titled “Recent Management Fee Changes” under the heading “Shareholder Information - Investment Manager” in the Prospectus:
Transamerica BlackRock iShares Dynamic Allocation – Balanced VP: Effective November 1, 2021, the management fee is 0.50% of the first $500 million; 0.49% over $500 million up to $1 billion; 0.4725% over $1 billion up to $2.5 billion; 0.465% over $2.5 billion up to $3.5 billion; 0.4525% over $3.5 billion up to $4.5 billion; and 0.44% in excess of $4.5 billion in average daily net assets. Prior to November 1, 2021, the management fee was 0.57% of the first $750 million; 0.56% over
$750 million up to $1.5 billion; 0.54% over $1.5 billion up to $2.5 billion; 0.52% over $2.5 billion up to $3 billion; and 0.51% in excess of $3 billion in average daily net assets.
Transamerica BlackRock iShares Dynamic Allocation – Moderate Growth VP: Effective November 1, 2021, the management fee is 0.50% of the first $500 million; 0.49% over $500 million up to $1 billion; 0.4725% over $1 billion up to
$2.5 billion; 0.465% over $2.5 billion up to $3.5 billion; 0.4525% over $3.5 billion up to $4.5 billion; and 0.44% in excess of
$4.5 billion in average daily net assets. Prior to November 1, 2021, the management fee was 0.58% of the first $750 million; 0.57% over $750 million up to $1.5 billion; 0.55% over $1.5 billion up to $2.5 billion; 0.53% over $2.5 billion up to $3 billion; and 0.52% in excess of $3 billion in average daily net assets.
Effective November 1, 2021, the management fee is 0.50% of the first $500 million; 0.49% over $500 million up to $1 billion; 0.4725% over $1 billion up to $2.5 billion; 0.465% over $2.5 billion up to $3.5 billion; 0.4525% over $3.5 billion up to $4.5 billion; and 0.44% in excess of $4.5 billion in average daily net assets. Prior to November 1, 2021, the management fee was 0.58% of the first $50 million; 0.56% over $50 million up to $250 million; 0.54% over $250 million up to $1 billion; 0.52% over $1 billion up to $1.5 billion; 0.51% over $1.5 billion up to $2.5 billion and 0.50% in excess of $2.5 billion in average daily net assets.
* * *
Transamerica Legg Mason Dynamic Allocation – Balanced VP will be renamed Transamerica BlackRock iShares Dynamic Allocation
– Balanced VP and the following information will supplement and supersede any contrary information contained in the Prospectus and Summary Prospectus concerning the portfolio:
The portfolio’s principal investment strategies will be as follows:
Under normal circumstances, the portfolio’s sub-adviser, BlackRock Investment Management, LLC (the “sub-adviser”), seeks to achieve the portfolio’s objective by investing its assets primarily in a combination of underlying exchange-traded funds (“ETFs”) advised by an affiliate of the sub-adviser.
The portfolio’s target allocation for long-term investments (the “Strategic Asset Allocation”) is approximately 50% in equity ETFs and approximately 50% in fixed income ETFs that are not money market funds (“fixed income ETFs”). The portfolio’s sub-adviser may periodically adjust the portfolio’s asset class allocations in accordance with its investment process and in an effort to appropriately position the portfolio to changing market environments. The sub-adviser may also allow the relative weighting of the portfolio’s investments within asset classes to vary from its Strategic Asset Allocation in response to market conditions, and may from time to time make tactical increases or decreases to the portfolio’s investment in a particular asset class beyond the Strategic Asset Allocation based on a broad range of market and economic trends and quantitative factors. The portfolio’s equity exposure will generally range from 2.5% to 50% of its net assets under periods of normal market conditions.
The sub-adviser will seek to manage the portfolio’s volatility in an effort to stabilize performance. The sub-adviser will monitor the expected volatility of the portfolio on a daily basis. The sub-adviser will apply a volatility control framework that may cause the sub-adviser to respond to periods of higher than expected volatility by deviating from the Strategic Asset Allocation, allocating away from riskier asset classes such as equities, and increasing the portfolio’s exposure to cash and defensive assets in order to attempt to reduce volatility within the portfolio. The sub-adviser expects to allocate back to riskier assets away from defensive assets as volatility normalizes. The strategy is intended to result in lower volatility of the portfolio’s net asset value under negative market conditions.
The underlying ETFs have a variety of investment focuses. The underlying equity ETFs include ETFs that are based on large cap
U.S. equity, small cap U.S. equity and international equity indexes. The underlying fixed income ETFs include ETFs that are based on broad, short, intermediate and long-term fixed income indexes, as well as high yield and floating rate bond indexes.
The portfolio may also invest in short-term defensive instruments (including Treasury bills, money market funds and cash). The portfolio’s net asset value will fluctuate, and the fluctuations may be sizable.
* * *
Transamerica Legg Mason Dynamic Allocation – Growth VP will be renamed Transamerica BlackRock iShares Dynamic Allocation – Moderate Growth VP and the following information will supplement and supersede any contrary information contained in the Prospectus and Summary Prospectus concerning the portfolio:
The portfolio’s principal investment strategies will be as follows:
Under normal circumstances, the portfolio’s sub-adviser, BlackRock Investment Management, LLC (the “sub-adviser”), seeks to achieve the portfolio’s objective by investing its assets primarily in a combination of underlying exchange-traded funds (“ETFs”) advised by an affiliate of the sub-adviser.
The portfolio’s target allocation for long-term investments (the “Strategic Asset Allocation”) is approximately 70% in equity ETFs and approximately 30% in fixed income ETFs that are not money market funds (“fixed income ETFs”). The portfolio’s sub-adviser may periodically adjust the portfolio’s asset class allocations in accordance with its investment process and in an effort to appropriately position the portfolio to changing market environments. The sub-adviser may also allow the relative weighting of the portfolio’s investments within asset classes to vary from its Strategic Asset Allocation in response to market conditions, and may from time to time make tactical increases or decreases to the portfolio’s investment in a particular asset class beyond the Strategic Asset Allocation based on a broad range of market and economic trends and quantitative factors. The portfolio’s equity exposure will generally range from 3.5% to 70% of its net assets under periods of normal market conditions.
The sub-adviser will seek to manage the portfolio’s volatility in an effort to stabilize performance. The sub-adviser will monitor the expected volatility of the portfolio on a daily basis. The sub-adviser will apply a volatility control framework that may cause the sub-adviser to respond to periods of higher than expected volatility by deviating from the Strategic Asset Allocation, allocating away from riskier asset classes such as equities, and increasing the portfolio’s exposure to cash and defensive assets in order to attempt to reduce volatility within the portfolio. The sub-adviser expects to allocate back to riskier assets away from defensive assets as volatility normalizes. The strategy is intended to result in lower volatility of the portfolio’s net asset value under negative market conditions.
The underlying ETFs have a variety of investment focuses. The underlying equity ETFs include ETFs that are based on large cap
U.S. equity, small cap U.S. equity and international equity indexes. The underlying fixed income ETFs include ETFs that are based on broad, short, intermediate and long-term fixed income indexes, as well as high yield and floating rate bond indexes.
The portfolio may also invest in short-term defensive instruments (including Treasury bills, money market funds and cash).
The portfolio’s net asset value will fluctuate, and the fluctuations may be sizable.
* * *
Transamerica QS Investors Active Asset Allocation – Conservative VP will be renamed Transamerica BlackRock iShares Active Asset Allocation – Conservative VP and the following information will supplement and supersede any contrary information contained in the Prospectus and Summary Prospectus concerning the portfolio:
The portfolio’s principal investment strategies will be as follows:
Under normal circumstances, the portfolio’s sub-adviser, BlackRock Investment Management, LLC (the “sub-adviser”), seeks to achieve the portfolio’s objective by investing its assets primarily in a combination of underlying exchange-traded funds (“ETFs”) advised by an affiliate of the sub-adviser.
The portfolio’s target allocation for long-term investments (the “Strategic Asset Allocation”) is approximately 35% in equity ETFs and approximately 65% in fixed income ETFs that are not money market funds (“fixed income ETFs”). The portfolio’s sub-adviser may periodically adjust the portfolio’s asset class allocations in accordance with its investment process and in an effort to appropriately position the portfolio to changing market environments. The sub-adviser may also allow the relative weighting of the portfolio’s investments within asset classes to vary from its Strategic Asset Allocation in response to market conditions, and may from time to time make tactical increases or decreases to the portfolio’s investment in a particular asset class beyond the Strategic Asset Allocation based on a broad range of market and economic trends and quantitative factors.
The portfolio’s equity exposure will generally range from 20% to 50% of its net assets under periods of normal market conditions.
The sub-adviser will seek to manage the portfolio’s volatility in an effort to stabilize performance. The sub-adviser will monitor the expected volatility of the portfolio on a daily basis. The sub-adviser will apply a volatility control framework that may cause the sub-adviser to respond to periods of higher than expected volatility by deviating from the Strategic Asset Allocation, allocating away from riskier asset classes such as equities, and increasing the portfolio’s exposure to cash and defensive assets in order to attempt to reduce volatility within the portfolio. The sub-adviser expects to allocate back to riskier assets away from defensive assets as volatility normalizes. The strategy is intended to result in lower volatility of the portfolio’s net asset value under negative market conditions.
The underlying ETFs have a variety of investment focuses. The underlying equity ETFs include ETFs that are based on large cap
U.S. equity, small cap U.S. equity and international equity indexes. The underlying fixed income ETFs include ETFs that are based on broad, short, intermediate and long-term fixed income indexes, as well as high yield and floating rate bond indexes.
The portfolio may also invest in short-term defensive instruments (including Treasury bills, money market funds and cash). The portfolio’s net asset value will fluctuate, and the fluctuations may be sizable.
* * *
Transamerica QS Investors Active Asset Allocation – Moderate Growth VP will be renamed Transamerica BlackRock iShares Active Asset Allocation – Moderate Growth VP and the following information will supplement and supersede any contrary information contained in the Prospectus and Summary Prospectus concerning the portfolio:
The portfolio’s principal investment strategies will be as follows:
Under normal circumstances, the portfolio’s sub-adviser, BlackRock Investment Management, LLC (the “sub-adviser”), seeks to achieve the portfolio’s objective by investing its assets primarily in a combination of underlying exchange-traded funds (“ETFs”) advised by an affiliate of the sub-adviser.
The portfolio’s target allocation for long-term investments (the “Strategic Asset Allocation”) is approximately 70% in equity ETFs and approximately 30% in fixed income ETFs that are not money market funds (“fixed income ETFs”). The portfolio’s sub-adviser may periodically adjust the portfolio’s asset class allocations in accordance with its investment process and in an effort to appropriately position the portfolio to changing market environments. The sub-adviser may also allow the relative weighting of the portfolio’s investments within asset classes to vary from its Strategic Asset Allocation in response to market conditions, and may from time to time make tactical increases or decreases to the portfolio’s investment in a particular asset class beyond the Strategic Asset Allocation based on a broad range of market and economic trends and quantitative factors. The portfolio’s equity exposure will generally range from 30% to 95% of its net assets under periods of normal market conditions.
The sub-adviser will seek to manage the portfolio’s volatility in an effort to stabilize performance. The sub-adviser will monitor the expected volatility of the portfolio on a daily basis. The sub-adviser will apply a volatility control framework that may cause the sub-adviser to respond to periods of higher than expected volatility by deviating from the Strategic Asset Allocation, allocating
away from riskier asset classes such as equities, and increasing the portfolio’s exposure to cash and defensive assets in order to attempt to reduce volatility within the portfolio. The sub-adviser expects to allocate back to riskier assets away from defensive assets as volatility normalizes. The strategy is intended to result in lower volatility of the portfolio’s net asset value under negative market conditions.
The underlying ETFs have a variety of investment focuses. The underlying equity ETFs include ETFs that are based on large cap
U.S. equity, small cap U.S. equity and international equity indexes. The underlying fixed income ETFs include ETFs that are based on broad, short, intermediate and long-term fixed income indexes, as well as high yield and floating rate bond indexes.
The portfolio may also invest in short-term defensive instruments (including Treasury bills, money market funds and cash). The portfolio’s net asset value will fluctuate, and the fluctuations may be sizable.
* * *
Transamerica QS Investors Active Asset Allocation – Moderate VP will be renamed Transamerica BlackRock iShares Active Asset Allocation – Moderate VP and the following information will supplement and supersede any contrary information contained in the Prospectus and Summary Prospectus concerning the portfolio:
The portfolio’s principal investment strategies will be as follows:
Under normal circumstances, the portfolio’s sub-adviser, BlackRock Investment Management, LLC (the “sub-adviser”), seeks to achieve the portfolio’s objective by investing its assets primarily in a combination of underlying exchange-traded funds (“ETFs”) advised by an affiliate of the sub-adviser.
The portfolio’s target allocation for long-term investments (the “Strategic Asset Allocation”) is approximately 50% in equity ETFs and approximately 50% in fixed income ETFs that are not money market funds (“fixed income ETFs”). The portfolio’s sub-adviser may periodically adjust the portfolio’s asset class allocations in accordance with its investment process and in an effort to appropriately position the portfolio to changing market environments. The sub-adviser may also allow the relative weighting of the portfolio’s investments within asset classes to vary from its Strategic Asset Allocation in response to market conditions, and may from time to time make tactical increases or decreases to the portfolio’s investment in a particular asset class beyond the Strategic Asset Allocation based on a broad range of market and economic trends and quantitative factors. The portfolio’s equity exposure will generally range from 25% to 70% of its net assets under periods of normal market conditions.
The sub-adviser will seek to manage the portfolio’s volatility in an effort to stabilize performance. The sub-adviser will monitor the expected volatility of the portfolio on a daily basis. The sub-adviser will apply a volatility control framework that may cause the sub-adviser to respond to periods of higher than expected volatility by deviating from the Strategic Asset Allocation, allocating away from riskier asset classes such as equities, and increasing the portfolio’s exposure to cash and defensive assets in order to attempt to reduce volatility within the portfolio. The sub-adviser expects to allocate back to riskier assets away from defensive assets as volatility normalizes. The strategy is intended to result in lower volatility of the portfolio’s net asset value under negative market conditions.
The underlying ETFs have a variety of investment focuses. The underlying equity ETFs include ETFs that are based on large cap
U.S. equity, small cap U.S. equity and international equity indexes. The underlying fixed income ETFs include ETFs that are based on broad, short, intermediate and long-term fixed income indexes, as well as high yield and floating rate bond indexes.
The portfolio may also invest in short-term defensive instruments (including Treasury bills, money market funds and cash). The portfolio’s net asset value will fluctuate, and the fluctuations may be sizable.
The “Dynamic Risk Management” and “Event Risk Management” risks are deleted from the “Principal Risks” section of the Prospectus and Summary Prospectuses relating to each of the above portfolios.
* * *
The “Dynamic Risk Management” risk is deleted from the “Principal Risks” section of the Prospectus and Summary Prospectuses relating to each of the above portfolios.
* * *
The “Dynamic Risk Management” and “Event Risk Management” risks are deleted from the “More on the Risks of Investing in Each Portfolio” section of the Prospectus:
* * *
The portfolios’ sub-adviser will be as follows:
BlackRock Investment Management, LLC, a wholly-owned and indirect subsidiary of BlackRock, Inc., has been registered as an investment adviser since 1988. As of December 31, 2020, BlackRock, Inc. had approximately $8.68 trillion in total assets under management. BlackRock Investment Management, LLC’s principal business address is 1 University Square Drive, Princeton, NJ 08540-6455.
Each portfolio’s portfolio managers will be as follows:
|
Name |
Sub-Adviser |
Positions Over Past Five Years |
|
Philip Green |
BlackRock Investment Management, LLC |
Portfolio Manager of the portfolio since 2021; Portfolio Manager with BlackRock Investment Management, Inc. since 1999; Managing Director; Member of the BlackRock Portfolio Management Group (PMG) Asset Allocation Team |
|
Michael Pensky |
BlackRock Investment Management, LLC |
Portfolio Manager of the portfolio since 2021; Portfolio Manager with BlackRock Investment Management, Inc. since 2015; Managing Director; Member of the BlackRock Portfolio Management Group (PMG) Asset Allocation Team |
The following information revises the corresponding information appearing in the table contained in the “Investment Manager Compensation” sub-section of the Statement of Additional Information under the heading “Investment Management and Other Services
– The Investment Manager” for each of the portfolios:
|
Portfolio Name |
Percentage of Average Daily Net Assets |
|
Transamerica BlackRock iShares Dynamic Allocation – Balanced VP Transamerica BlackRock iShares Dynamic Allocation – Moderate Growth VP Transamerica BlackRock iShares Active Asset Allocation – Conservative VP Transamerica BlackRock iShares Active Asset Allocation – Moderate Growth VP Transamerica BlackRock iShares Active Asset Allocation – Moderate VP |
First $500 million........................................ 0.50% Over $500 million up to $1 billion…....... 0.49% Over $1 billion up to $2.5 billion.................................................................... 0.4725% Over $2.5 billion up to $3.5 billion…...................................................................... 0.465% Over $3.5 billion up to $4.5 billion… 0.4525% In excess of $4.5 billion…........................................................................ 0.44% |
The following information revises the corresponding information appearing in the table contained in the “Sub-Advisory Fees” sub- section of the Statement of Additional Information under the heading “Investment Management and Other Services – Sub-Advisers” for each of the portfolios:
|
Portfolio |
Sub-Adviser |
Sub-Advisory Fees |
|
Transamerica BlackRock iShares Dynamic Allocation – Balanced VP Transamerica BlackRock iShares Dynamic Allocation – Moderate Growth VP Transamerica BlackRock iShares Active Asset Allocation – Conservative VP Transamerica BlackRock iShares Active Asset Allocation – Moderate Growth VP Transamerica BlackRock iShares Active Asset Allocation – Moderate VP |
BlackRock Investment Management, LLC (5), (10) |
First $500 million....................................................................... 0.06% Over $500 million up to $1 billion…...................................................................... 0.055% Over $1 billion up to $2.5 billion........................................................................ 0.05% Over $2.5 billion up to $3.5 billion…...................................................................... 0.045% Over $3.5 billion up to $4.5 billion.................................................................... 0.0425% In excess of $4.5 billion…........................................................................ 0.04% |
(5) BlackRock Investment Management, LLC has agreed to waive its sub-advisory fee for each portfolio for so long as each portfolio invests all or substantially all (meaning 80% or more) of its net assets (excluding cash and cash equivalents) in the underlying ETFs sponsored or advised by BlackRock Investment Management, LLC or its affiliates.
(10) The average daily net assets for the purpose of calculating sub-advisory fees will be determined on a combined basis with Transamerica BlackRock iShares Dynamic Allocation – Balanced VP, Transamerica BlackRock iShares Dynamic Allocation – Moderate Growth VP, Transamerica BlackRock iShares Active Asset Allocation – Conservative VP, Transamerica BlackRock iShares Active Asset Allocation – Moderate Growth VP, and Transamerica BlackRock iShares Active Asset Allocation – Moderate VP.
* * *
The portfolios’ benchmarks will be as follows:
Primary benchmark: S&P 500®
Secondary benchmark: Bloomberg Barclays US Aggregate Bond Index
Blended benchmark: Transamerica BlackRock iShares Dynamic Allocation – Balanced VP Blended Benchmark (consists of S&P 500® Index (35%); Bloomberg Barclays US Aggregate Bond Index (25%); Bloomberg Barclays 7-10 Year Treasury Index (25%); and MSCI EAFE Index (15%))
Primary benchmark: S&P 500®
Secondary benchmark: Bloomberg Barclays US Aggregate Bond Index
Blended benchmark: Transamerica BlackRock iShares Dynamic Allocation – Moderate Growth VP Blended Benchmark (consists of S&P 500® Index (50%); Bloomberg Barclays US Aggregate Bond Index (15%); Bloomberg Barclays 7-10 Year Treasury Index (15%); and MSCI EAFE Index (20%))
Primary benchmark: Bloomberg Barclays US Aggregate Bond Index
Secondary benchmark: Russell 3000® Index
Blended benchmark: Transamerica BlackRock iShares Active Asset Allocation – Conservative VP Blended Benchmark (consists of S&P 500® Index (20%); MSCI EAFE Index (11%); Russell 2000® Index (4%); Bloomberg Barclays US Aggregate Bond Index (47%); and Bloomberg Barclays 7-10 Year Treasury Index (18%))
Primary benchmark: Russell 3000® Index
Secondary benchmark: Bloomberg Barclays US Aggregate Bond Index
Blended benchmark: Transamerica BlackRock iShares Active Asset Allocation – Moderate Growth VP Blended Benchmark (consists of S&P 500® Index (43%); MSCI EAFE Index (20%); Russell 2000® Index (7%); Bloomberg Barclays US Aggregate Bond Index (20%); and Bloomberg Barclays 7-10 Year Treasury Index (10%))
Transamerica BlackRock iShares Active Asset Allocation – Moderate VP Primary benchmark: Bloomberg Barclays US Aggregate Bond Index Secondary benchmark: Russell 3000® Index
Blended benchmark: Transamerica BlackRock iShares Active Asset Allocation – Moderate VP Blended Benchmark (consists of S&P 500® Index (30%); MSCI EAFE Index (15%); Russell 2000® Index (5%); Bloomberg Barclays US Aggregate Bond Index (35%); and Bloomberg Barclays 7-10 Year Treasury Index (15%))
* * *
Effective as of November 1, 2021, the “Expense Cap” table under the heading “Investment Management and Other Services – Expense Limitation” in the Statement of Additional Information will be revised as described below:
|
Portfolio Name |
Expense Cap Initial Class |
Expense Cap Service Class |
Expiration Date of Expense Cap |
|
Transamerica BlackRock iShares Dynamic Allocation – Balanced VP |
0.55% |
0.80% |
May 1, 2023 |
|
0.55%Transamerica BlackRock iShares Dynamic Allocation – Moderate Growth VP |
0.55% |
0.80% |
May 1, 2023 |
|
Transamerica BlackRock iShares Active Asset Allocation – Conservative VP |
0.55% |
0.80% |
May 1, 2023 |
|
Transamerica BlackRock iShares Active Asset Allocation – Moderate Growth VP |
0.55% |
0.80% |
May 1, 2023 |
|
Transamerica BlackRock iShares Active Asset Allocation – Moderate VP |
0.55% |
0.80% |
May 1, 2023 |
* * *
Investors Should Retain this Supplement for Future Reference
June 23, 2021
TRANSAMERICA SERIES TRUST
Transamerica International Growth VP Supplement to the Currently Effective Prospectus,
Summary Prospectus and Statement of Additional Information
* * *
Effective on or about October 31, 2021, TDAM USA Inc. (“TDAM USA”) will merge with and into Epoch Investment Partners, Inc. (“Epoch”) and Epoch will assume the sub-advisory agreement with Transamerica Asset Management, Inc. with respect to Transamerica International Growth VP (the “portfolio”). TDAM USA and Epoch are each indirect wholly-owned subsidiaries of The Toronto-Dominion Bank. The portfolio’s investment objective, principal investment strategies, principal risks, portfolio managers, investment manager and investment management and sub-advisory fee schedules will remain the same.
As of that date, all references to TDAM USA in the Prospectus, Summary Prospectus and Statement of Additional Information are replaced with Epoch, and the following replaces the information relating to TDAM USA in the Prospectus in the sub-section entitled “Further Information About Each Sub-Adviser” under the section entitled “Shareholder Information – Sub-Adviser(s)”:
Epoch Investment Partners, Inc. has been a registered investment adviser since 2004. As of December 31, 2020, Epoch Investment Partners, Inc. had approximately $31.5 billion in total assets under management. Epoch Investment Partners, Inc. is a wholly-owned subsidiary of TD Bank US Holding Company, which is wholly-owned by The Toronto-Dominion Bank.
* * *
Effective on or about November 1, 2021, Transamerica International Growth VP will be renamed Transamerica International Focus VP. As of that date, all references to Transamerica International Growth VP in the Prospectus, Summary Prospectus and Statement of Additional Information are replaced with Transamerica International Focus VP.
* * *
Investors Should Retain this Supplement for Future Reference
August 9, 2021
TRANSAMERICA SERIES TRUST
Supplement to the Currently Effective Prospectus, Summary Prospectuses and Statement of Additional Information
Transamerica Legg Mason Dynamic Allocation - Balanced VP Transamerica Legg Mason Dynamic Allocation - Growth VP Transamerica QS Investors Active Asset Allocation - Conservative VP Transamerica QS Investors Active Asset Allocation - Moderate VP Transamerica QS Investors Active Asset Allocation - Moderate Growth VP
(each, a “Portfolio” and collectively, the “Portfolios”)
* * *
Effective August 7, 2021, QS Investors, LLC (“QS Investors”), a wholly-owned subsidiary of Franklin Resources, Inc. (“Franklin Resources”), will merge with and into Franklin Advisers, Inc. (“Franklin Advisers”), also a wholly-owned subsidiary of Franklin Resources. All of QS Investors’ rights and obligations under the sub-advisory agreements with Transamerica Asset Management, Inc. with respect to the Portfolios will be transferred to Franklin Advisers, and Franklin Advisers will serve as the sub-adviser to the Portfolios. Each Portfolio’s investment objective, principal investment strategies, principal risks, investment manager and investment management and sub-advisory fee schedules will remain the same. As of that date, all references to QS Investors as sub-adviser to the Portfolios in the Prospectus, Summary Prospectuses and Statement of Additional Information are replaced with Franklin Advisers.
All changes described below are effective August 7, 2021.
The following replaces the information relating to QS Investors in the Prospectus in the sub-section entitled “Further Information About Each Sub-Adviser” under the section entitled “Shareholder Information – Sub-Adviser(s)”:
Franklin Advisers, Inc. has been a registered investment adviser since 1986. As of December 31, 2020, Franklin Advisers, Inc. had approximately $362 billion in total assets under management. Franklin Advisers, Inc. is a wholly-owned subsidiary of Franklin Resources, Inc.
* * *
The following replaces the corresponding information in the Prospectus and Summary Prospectus for each of Transamerica Legg Mason Dynamic Allocation - Balanced VP and Transamerica Legg Mason Dynamic Allocation - Growth VP under the section entitled “Management”:
|
Management: |
|
|
|
Investment Manager: Transamerica Asset Management, Inc. |
||
|
Sub-Adviser: Franklin Advisers, Inc. |
||
|
Portfolio Managers: |
|
|
|
Laura Green, CFA |
Portfolio Manager |
since 2021 |
|
Thomas Picciochi |
Portfolio Manager |
since 2014 |
Sub-Sub-Adviser: Western Asset Management Company, LLC
|
Portfolio Managers: |
|
|
|
Prashant Chandran |
Portfolio Manager |
since 2012 |
|
Jim K. Huynh |
Portfolio Manager |
since 2013 |
|
S. Kenneth Leech |
Portfolio Manager |
since 2014 |
* * *
The following replaces the corresponding information in the Prospectus in the section entitled “Shareholder Information – Portfolio Manager(s)” under the heading for each of Transamerica Legg Mason Dynamic Allocation - Balanced VP and Transamerica Legg Mason Dynamic Allocation - Growth VP:
|
Name |
Sub-Adviser |
Positions Over Past Five Years |
|
Laura Green, CFA |
Franklin Advisers, Inc. |
Portfolio Manager of the portfolio since 2021; Vice President and Portfolio Manager at Franklin Templeton Investment Solutions, wholly-owned by Franklin Advisers, Inc. (formerly, QS Investors, LLC) since 2010 |
|
Thomas Picciochi |
Franklin Advisers, Inc. |
Portfolio Manager of the portfolio since 2014; Head of Portfolio Management at Franklin Advisers, Inc. (formerly, QS Investors, LLC) since 2020, Head of Multi-Asset Portfolio Management at Franklin Advisers, Inc. from 2010 - 2020 |
|
Prashant Chandran |
Western Asset Management Company, LLC |
Portfolio Manager of the portfolio since 2012; Employed by Western Asset Management Company, LLC since 2005 |
|
Jim K. Huynh |
Western Asset Management Company, LLC |
Portfolio Manager of the portfolio since 2013. Employed by Western Asset Management Company, LLC since 2003 |
|
S. Kenneth Leech |
Western Asset Management Company, LLC |
Portfolio Manager of the portfolio since 2014; Chief Investment Officer since 1990 |
* * *
The following replaces the corresponding information in the Prospectus and Summary Prospectuses for each of Transamerica QS Investors Active Asset Allocation - Conservative VP, Transamerica QS Investors Active Asset Allocation - Moderate VP and Transamerica QS Investors Active Asset Allocation - Moderate Growth VP under the section entitled “Management”:
|
Management: |
|
|
|
Investment Manager: Transamerica Asset Management, Inc. |
||
|
Sub-Adviser: Franklin Advisers, Inc. |
||
|
Portfolio Managers: |
|
|
|
Laura Green, CFA |
Portfolio Manager |
since 2021 |
|
Thomas Picciochi |
Portfolio Manager |
since 2015 |
* * *
The following replaces the corresponding information in the Prospectus in the section entitled “Shareholder Information – Portfolio Manager(s)” under the heading for each of Transamerica QS Investors Active Asset Allocation - Conservative VP, Transamerica QS Investors Active Asset Allocation - Moderate VP and Transamerica QS Investors Active Asset Allocation - Moderate Growth VP:
|
Name |
Sub-Adviser |
Positions Over Past Five Years |
|
Laura Green, CFA |
Franklin Advisers, Inc. |
Portfolio Manager of the portfolio since 2021; Vice President and Portfolio Manager at Franklin Templeton Investment Solutions, wholly-owned by Franklin Advisers, Inc. (formerly, QS Investors, LLC) since 2010 |
|
Thomas Picciochi |
Franklin Advisers, Inc. |
Portfolio Manager of the portfolio since 2015; Head of Portfolio Management at Franklin Advisers, Inc. (formerly, QS Investors, LLC) since 2020, Head of Multi-Asset Portfolio Management at Franklin Advisers, Inc. from 2010 - 2020 |
The following replaces the corresponding information in the Statement of Additional Information under the section in Appendix B entitled “Portfolio Managers – Franklin Advisers, Inc. (formerly, QS Investors, LLC) (“Franklin Advisers”)”:
Transamerica Legg Mason Dynamic Allocation - Balanced VP
|
|
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
|
Portfolio Manager |
Number |
Assets Managed |
Number |
Assets Managed |
Number |
Assets Managed |
|
Laura Green, CFA* |
0 |
$0 |
8 |
$304 million |
21 |
$433 million |
|
Thomas Picciochi |
35 |
$8.2 billion |
32 |
$5.5 billion |
36 |
$700 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.) |
||||||
|
Laura Green, CFA* |
0 |
$0 |
0 |
$0 |
1 |
$49 million |
|
Thomas Picciochi |
0 |
$0 |
0 |
$0 |
1 |
$48 million |
* As of June 30, 2021
Transamerica Legg Mason Dynamic Allocation - Growth VP
|
|
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
|
Portfolio Manager |
Number |
Assets Managed |
Number |
Assets Managed |
Number |
Assets Managed |
|
Laura Green, CFA* |
0 |
$0 |
8 |
$304 million |
21 |
$433 million |
|
Thomas Picciochi |
35 |
$8.8 billion |
32 |
$5.5 billion |
36 |
$700 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.) |
||||||
|
Laura Green, CFA* |
0 |
$0 |
0 |
$0 |
1 |
$49 million |
|
Thomas Picciochi |
0 |
$0 |
0 |
$0 |
1 |
$48 million |
* As of June 30, 2021
Transamerica QS Investors Active Asset Allocation - Conservative VP
|
|
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
|
Portfolio Manager |
Number |
Assets Managed |
Number |
Assets Managed |
Number |
Assets Managed |
|
Laura Green, CFA* |
0 |
$0 |
8 |
$304 million |
21 |
$433 million |
|
Thomas Picciochi |
35 |
$8.9 billion |
32 |
$5.5 billion |
36 |
$700 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.) |
||||||
|
Laura Green, CFA* |
0 |
$0 |
0 |
$0 |
1 |
$49 million |
|
Thomas Picciochi |
0 |
$0 |
0 |
$0 |
1 |
$48 million |
* As of June 30, 2021
QS Investors Active Asset Allocation – Moderate Growth VP
|
|
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
|
Portfolio Manager |
Number |
Assets Managed |
Number |
Assets Managed |
Number |
Assets Managed |
|
Laura Green, CFA* |
0 |
$0 |
8 |
$304 million |
21 |
$433 million |
|
Thomas Picciochi |
35 |
$7.9 billion |
32 |
$5.5 billion |
36 |
$700 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.) |
||||||
|
Laura Green, CFA* |
0 |
$0 |
0 |
$0 |
1 |
$49 million |
|
Thomas Picciochi |
0 |
$0 |
0 |
$0 |
1 |
$48 million |
* As of June 30, 2021
QS Investors Active Asset Allocation – Moderate VP
|
|
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
|
Portfolio Manager |
Number |
Assets Managed |
Number |
Assets Managed |
Number |
Assets Managed |
|
Laura Green, CFA* |
0 |
$0 |
8 |
$304 million |
21 |
$433 million |
|
Thomas Picciochi |
35 |
$8.7 billion |
32 |
$5.5 billion |
36 |
$700 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.) |
||||||
|
Laura Green, CFA* |
0 |
$0 |
0 |
$0 |
1 |
$49 million |
|
Thomas Picciochi |
0 |
$0 |
0 |
$0 |
1 |
$48 million |
* As of June 30, 2021
* * *
Investors Should Retain this Supplement for Future Reference
August 6, 2021