Transamerica International Equity Class R6 · NASDAQ:TAINX
Transamerica International Equity Class R6 — Transamerica — Investor Presentation (2016)
23 slides from Transamerica International Equity Class R6's investor presentation, Aug 4, 2016
Slide 1: 2016 Outlook
2016 Outlook Gain perspective from Transamerica and our network of 40+ external asset managers (sub-advisers)
Slide 2: Transamerica: Our Investor First Process
Transamerica: Our Investor First Process We believe no single investment firm is the best at managing every asset class. That’s why we take a diversified approach with our mutual funds, one that leverages the expertise and insight of asset managers across the industry to give you a full range of inv
Slide 3: Transamerica Outlook: Investment themes for 2016
Transamerica Outlook: Investment themes for 2016 • U.S. Equities: Look for opportunities in stocks as the economy modestly improves. • U.S. Equities: We expect U.S. GDP growth to be higher than most anticipate—2.5% or better. • International Equities: Opportunities in Europe and Japan based on favor
Slide 4: U.S. Equities
2016 Outlook U.S. Equities • Look for opportunities in stocks as the economy modestly improves • We expect better U.S. GDP growth
Slide 5: U.S. Equities: Look for opportunities in stocks as the economy modestly improves
U.S. Equities: Look for opportunities in stocks as the economy modestly improves We believe U.S. stocks are positioned for mid to high single-digit appreciation in the year ahead based on growth in earnings, but not multiple expansion. With the macro environment friendlier than most anticipate, we e
Slide 6: U.S. Equities: Sub-adviser expectations
U.S. Equities: Sub-adviser expectations U.S. Stocks Expectations Sector Ranking Expectations Morningstar Style Boxes U.S. Equities Return Expectations 53% # 1 Health care 2 tie: Consumer discretionary, Large Value Large Blend Large Growth 33% Financials 3 Information technology Mid Value Mid Blend M
Slide 7: U.S. Equities: Be an owner
U.S. Equities: Be an owner Theme Transamerica Fund(s) • Broadly speaking, owning companies (via equities) Transamerica has worked out better historically than lending to Dividend Focused them (via debt securities) in a rising-rate environment. Class A TDFAX | Class C TDFCX | Class I TDFIX Companies
Slide 8: U.S. Equities: Expect better U.S. GDP growth
Strong Dollar Impact on U.S. Exports Expected to Mitigate U.S. Equities: U.S. Dollar Index compared to Real GDP and Contribution of Net Exports Source: St. Louis Fed USD Index 118 Expect better U.S. GDP growth 4% 114 2% • The U.S. economy enters 2016 on stronger 110 footing than most give it credit
Slide 9: U.S. Equities: Sub-adviser expectations
U.S. Equities: Sub-adviser expectations 2016 GDP Growth Expectations 72% 46% 41% 35% 22% 18% 18% 12% 12% 6% 6% 6% 6% 0% 0% 0% 0% 0% 0% 0% 0% –% 0–1% 1–2% 2–2.5% 2.5–3% 3–4% 4%+ –% 0–1% 1–2% 2–2.5% 2.5–3% 3–4% 4%+ –% 0–1% 1–2% 2–2.5% 2.5–3% 3–4% 4%+ U.S. GDP GROWTH GLOBAL GDP GROWTH EMERGING MARKET G
Slide 10: U.S. Equities: Growth over value
U.S. Equities: Growth over value Theme Transamerica Fund(s) • In an accelerating growth environment, consider Transamerica favoring growth over value. Capital Growth Class A IALAX | Class C ILLLX | Class I TFOIX • Look for investments that not only focus on growth but that could also benefit from a
Slide 11: International Equities
2016 Outlook International Equities Opportunities in Europe and Japan based on favorable monetary policy and incrementally improving economic growth
Slide 12: International Equities: Opportunities in Europe and Japan
International Equities: Opportunities in Europe and Japan—favorable U.S. Tightens as Europe and Japan Ease monetary policy and economic growth Federal Reserve, European Central Bank and Bank of Japan Balance Sheets in Trillions January 2012–November 2015 // Source: St. Louis Fed ¥400 3.0% Central ba
Slide 13: International Equities: Sub-adviser expectations
International Equities: Sub-adviser expectations International Stocks Expectations Morningstar Style Boxes International Equities Return Expectations 64% % 57% Large Value Large Blend Large Growth 43% 46% 33% 36% Mid Value Mid Blend Mid Growth 30% 30% 21% 15%15% 15% 15% Small Value Small Blend Small
Slide 14: International Equities: Go global
International Equities: Go global Theme Transamerica Fund(s) • Opportunities can arise during periods of central bank Transamerica divergence. Currently, there seems to be an opportunity International Equity in Europe and Japan because both are regions of the Class A TRWAX | Class C TRWCX | Class I
Slide 15: Fixed Income
2016 Outlook Fixed Income • We expect a solid recovery in the high-yield bond market as credit spreads narrow • Seek relative safety in short-term bonds as rates rise
Slide 16: Fixed Income: High-Yield Spreads Have Widened But Default Rates Remain Low
Fixed Income: High-Yield Spreads Have Widened But Overall Default Rates Remain Low We expect a solid recovery in the high-yield Source: Spread data from St. Louis Fed, Default rate data and forecasts from Moody’s 20% bond market as credit spreads narrow BofA Merrill Lynch U.S. High Yield Master II O
Slide 17: Fixed Income: Sub-adviser expectations
Fixed Income: Sub-adviser expectations High-Yield Bonds Expectations Category Ranking Expectations 33% # 1 High-yield corporates 27% 2 Investment-grade corporates 3 tie: Floating rate debt, TIPS 20% 4 Municipals 13% 5 Emerging markets 6 tie: Agencies, Asset-backed securities 7% 7 Mortgage-backed sec
Slide 18: Fixed Income: Take credit
Fixed Income: Take credit Theme Transamerica Fund(s) • During periods of economic expansion, investment-grade Transamerica and high-yield bonds may benefit from improved balance High Yield Bond sheets, robust liquidity, healthier credit ratios, and lower Class A IHIYX | Class C INCLX | Class I TDHIX
Slide 19: Fixed Income: Seek relative safety in short-term bonds as rates rise
Fixed Income: Seek relative safety in short-term bonds as rates rise Historical Spreads of Bond Yields and Inflation 10-year U.S. Treasury Yield and 12-month change in CPI (1975–Q3 2015) • Higher interest rates should prove to be beneficial to Source: St. Louis Fed economic growth as the time has co
Slide 20: Fixed Income: Sub-adviser expectations
Fixed Income: Sub-adviser expectations 10-Year Treasury Yield Expectation in 2016 70% 56% 44% 39% 38% 17% 18% 6% 6% 6% 0% 0% 0% 0% 0% 0% 0% 0% 1% 1–2% 2–2.5% 2.5–3% 3–4% 4%+ 1% 1–2% 2–2.5% 2.5–3% 3–4% 4%+ 1% 1–2% 2–2.5% 2.5–3% 3–4% 4%+ OR LOWER OR LOWER OR LOWER YEAR-END 2016 2016 INTRA-YEAR HIGH 20
Slide 21: Fixed Income: Be short
Fixed Income: Be short Theme Transamerica Fund(s) • Short-duration strategies are generally less sensitive Transamerica to interest rate movements than their longer-term Short-Term Bond counterparts. Strategies may be diversified across Class A ITAAX | Class C ITACX | Class I TSTIX sectors, includin
Slide 22: Summary
Summary Theme Call to Action Transamerica Fund(s) U.S. Equities Transamerica Transamerica Large Transamerica • L ook for opportunities in stocks as Be an owner Dividend Focused Cap Value Mid Cap Value Opportunities the economy modestly improves Class I TDFIX Class I TWQIX Class I MVTIX Growth over v
Slide 23: Important Information
Important Information Investments are subject to market risk, including the loss of principal. Asset classes or investment strategies described may not be suitable for all investors. Shares of the funds may only be sold by offering the funds’ prospectus. You should consider the investment objective,