The fund seeks to provide investors with high current income, with capital appreciation as a secondary objective and will be available to retail and institutional investors through A, C, and I share classes. Transamerica said the fund will employ a diversified, multiple asset class approach, investing in exchange-traded funds (ETFs) providing underlying exposure to:
- High-yield bonds
- Non-U.S. (including emerging markets) debt
- Dividend-paying stocks
- Preferred stocks
- Master limited partnerships (MLPs)
- Real estate investment trusts (REITs)
- International real estate
- International equities
- U.S. corporate bonds
- U.S. government bonds
- Treasury inflation protected securities (TIPS)
The fund will be sub-advised by AEGON USA Investment Management, LLC (AUIM). The asset-allocation strategy AUIM will employ leverages a proprietary econometric model that evaluates economic indicators to assess when investment opportunities are optimal, while limiting volatility and seeking the highest income yielding ETF investments available. Using ETFs managed by Vanguard, Blackrock (iShares), and State Street (SPDRs), Transamerica Global Tactical Income is able to invest in highly diversified, low-cost investment vehicles, the company said.
Jeff Whitehead, CFA, will lead the portfolio management team responsible for the fund’s strategy. Transamerica Capital, Inc. will lead the sales and distribution effort within the financial institution, wirehouse, and independent financial planner channels.