The fund, which is sub-advised by AllianceBernstein L.P., has approximately $70 million in assets and is offered in two classes: Initial Class and Service Class with net operating expenses of 82 bps and 107 bps respectively, according to the announcement.
The fund’s investment objective is to seek capital appreciation and current income, and it utilizes a Dynamic Asset Allocation strategy, which makes short-term adjustments to the fund’s asset mix of individual securities, underlying exchange traded funds, forwards, swaps and futures “to achieve targeted exposure to domestic equities, international equities, domestic bonds, international bonds and foreign currency,” according to a press release. “This approach seeks to generate improved returns per unit of volatility, as compared to those from fixed weight or rules-based models,” according to the announcement.
“Our investment manager selection process enabled us to identify this strategy offered by AllianceBernstein,” stated John K. Carter, Transamerica Asset Management, Inc.’s President and CEO. “We believe this fund offering will provide an investment solution that offers less volatility and competitive returns.”
Transamerica Capital, Inc. will lead the distribution effort for the fund which will be offered through Transamerica and other affiliated variable annuity contracts and variable life insurance policies.