Title: Transamerica Investment Management, LLC Heidi Y. Hu, CFA Senior Vice President, Head of Fixed Income Chris Gwynn, Regional Sales Director
1Transamerica Investment Management, LLCHeidi Y.
Hu, CFASenior Vice President, Head of Fixed
IncomeChris Gwynn, Regional Sales Director
The Ritz-Carlton, Bachelor Gulch,
Colorado September 17-19, 2003
2 One Firm Overview Two Fixed Income Investment
Philosophy and Process Three Performance Four TI
M at TRS
3Firm Overview
4Organizational Overview
- Predecessor organization started in 1967
- 14 billion under management ending second
Quarter 2003 - 6.7 billion in Equities
- 5.2 billion in Fixed Income
- 2.1 billion in Convertibles
- 58 employees with offices in Los Angeles, San
Francisco, Dayton and Denver - Los Angeles Fixed Income, Convertibles
- San Francisco Growth and Core Equity
- Dayton Traditional Value, Operations
- Denver Sales, Marketing and Client Service
-
- Unique Ownership Strategy TIM, LLC formed in
2000 by parent AEGON, N.V. -
- Economic Motivation
- 22 Employee owned Infrastructure
- 78 AEGON, N.V Autonomy
- Long standing track records
5Organizational Overview
EXECUTIVE MANAGEMENT
John Riazzi, CFA Chief Executive Officer
Gary Rollé, CFA President CIO
Heidi Hu, CFA Sr VP Head of Fixed-Income
Jeff Van Harte, CFA Sr VP Head of Equities
FIXED INCOME INVESTMENTS
EQUITY INVESTMENTS
EQUITY PORTFOLIO MANAGERS Chris Bonavico, CFA VP
Portfolio Manager Ken Broad, CFA VP
Portfolio Manager Daniel Prislin, CFA VP
Portfolio Manager Michelle Stevens, CFA VP
Portfolio Manager Patrick Fortier, CFA Portfolio
Manager EQUITY ANALYSTS Van Tran Research
Analyst EQUITY TRADER Lisa Hansen VP Portfolio
Manager (index/passive) Sangita Patel Securities
Trader
FIXED INCOME/CONVERTIBLE PORTFOLIO
MANAGERS Edward Han, VP Portfolio
Manager Kirk Kim VP Portfolio
Manager FIXED/CONV ANALYSTS Peter Lopez VP
Director of Fixed Income Research Irene Lu,
CFA Sr Research Analyst Andrew Kim, CFA Research
Analyst Greg Haendel Research Analyst
6Organizational Overview
As of 06/30/03
7Telling the Story
14.03 billion
14,025 billion
9878
8985
8.8 billion
8Representative Client List
Institutional Detroit General Retirement
System City of Detroit Police and Fire UniHealth
Foundation Aegon USA Bricker Eckler The
Cincinnati Reds Palmetto Rural Telephone
Cooperative Visiting Nurses of Ohio Marianist
Missions City of Ocala
Taft Hartley Paint Manufacturer Employers
Association The Painters Allied Trades Paint
Makers
Subadvised SEI Investments Legacy Marketing
Group Transamerica Retirement Services IDEX
Mutual Funds Transamerica Capital Western Reserve
Life IMAX Funds
SMA Platforms SEI Investments Lockwood Financial
Envestnet PMC Bank One Charles Schwab MAC Bear
Stearns McDonald Company
DC Alliance Platforms Charles Schwab Corporate
Services JP Morgan America Century Retirement
Services AIG Valic Sungard BISYS Diversified
Investment Advisers (DIA)
9TIM Competitive Advantages
- Investment Philosophy and Track Record
- A responsibly focused approach to growth
investing - Proven results through all market cycles
- Size
- Competitive asset size allows scalability
- Flexible asset size allows managers to adhere to
investment discipline - Stability
- Aegon, NV brings stability to the organization
- LLC creates an autonomous business unit,
bringing stability to the team - Hidden Gem
- 35 years of proven results
- Formation of TIM, LLC unlocked availability for
outside distribution -
10Fixed Income Investment Philosophy and Process
11Fixed Income Philosophy
- Generate consistent top quartile performance and
excess returns primarily through credit selection
and strategic sector weightings. - Corporate credit markets are not efficient
- Our expertise is in corporate credit valuation
- We use an active management style to exploit
inefficiencies in valuation
12Fixed Income Selection Process
Philosophy We seek to generate consistent
top-quartile performance and excess returns
through credit selection and strategic sector
weightings.
Result Proven success across all asset classes
Relative Valuation
All team members have a seat on the trading
desk, research does not occur in a valuation
vacuum Value comparisons are made
daily Economic indicators are reviewed and
discussed daily Our investment outlook is
reviewed on an ongoing basis, resulting in a
published investment outlook piece Sector
fundamentals are reviewed on an ongoing
basis Sector selections emphasize catalysts
for change, e.g. regulatory, economic,
technological All credits are stripped down to
their underlying business models - which are
evaluated for feasibility, profitability and
defensibility Similarities in process result
in excellent synergies with our equity analysts
Accountability
Economic Outlook
Ultimate responsibility for performance resides
with the portfolio manager
Sector Outlook
Peer Review
A strong culture of peer review is overlaid upon
the entire investment process
Credit Research
13Performance
14Transamerica Balanced Fund vs. Lipper Balanced
FundsReturns for Periods Ending 7/31/03
Inception 8/1/1998. The Transamerica Balanced
Fund is not part of the Lipper Balanced Funds
Universe. TRANAMERICA Balanced Fund performance
is gross of fees.
15Transamerica Investment Grade Fixed Income
Composite vs. Lipper Single A-Rated Corporate
Debt FundsReturns for Periods Ending 7/31/03
Inception 8/1/1998. The Transamerica
Investment Grade Fixed Income Composite is not
part of the Lipper Single A-Rated Corporate Debt
Funds Universe. TRANAMERICA Investment Grade
Fixed Income Composite performance is gross of
fees.
16Transamerica High Yield Fixed Income
Composite vs. Lipper High Current Yield
FundsReturns for Periods Ending 7/31/03
The Transamerica High Yield Fixed Income
Composite is not part of the Lipper High Current
Yield Funds Universe. TRANAMERICA High Yield
Fixed Income Composite performance is gross of
fees.
17Transamerica Money Market Composite vs. Lipper
Money Market FundsReturns for Periods Ending
7/31/03
The Transamerica Money Market Composite is not
part of the Lipper Money Market Funds Universe.
TRANAMERICA Money Market Composite performance is
gross of fees.
18TIM at TRS
Of the 22 Transamerica funds, 7 are managed by
TIM
Transamerica Cash Management Transamerica Bond
Fund Transamerica Balanced Fund Transamerica Core
Equity Fund Transamerica Equity Fund Transamerica
Focus Fund Transamerica Growth Opportunities Fund
19TIM Different, Simple, Makes Sense
Difference Makes Sense
- Unknown Firm Nobody Hates us
- Structure Analyst PM Owner
- Selection Process Cash Flow, Balance Sheet,
Management - Focus 25-50 Stocks vs. 100 plus
- Results Consistent Across time
Frames
20TIM Small/Mid Growth vs. PSN Mid Growth Universe
TIM Large Growth vs. PSN Large Growth Universe
TIM Large Growth
18
18
15
16.90
15
TIM Small/Mid Growth
R1000 Growth
15.07
10
13
R2500 Growth
10
5
1.36
8
8.14
0
Since Inception 7/1/1997
Since Inception 1/1/1994
-2
5
TIM Core Equity vs. Large Core Universe
TIM Balanced vs. Balanced Universe
TIM Core Equity
TIM Balanced
6
17
SP 500
15
Balanced Index
2
2.93
12
9
-1
-0.92
Since Inception 4/1/1998
Since Inception 1/1/1994
21Consistency 13 out of 13 vs. R1000G
TIM Large Growth
R1000 G Index
22Large Growth Lineup
23The Power of the Pyramid at work for You!
866-TIM-1800 Chris Gwynn (103) Toby Cromwell
(102) Crissy Janzen (105)
24(No Transcript)