Transamerica Bond Active ETF (TABD)

Overview

TABD is a fixed income fund designed to optimize returns through strategic investments in various bond classes and related instruments. The focus is on government, corporate, securitized, and structured credit markets, primarily targeting investment-grade securities while allowing for selective exposure to lower-rated debt, emerging markets, and non-US issuers. This flexible structure enables the fund to adapt to changing market environments without adhering to a strict duration target, thereby managing interest rate sensitivity effectively. The investment strategy is supported by in-depth macroeconomic assessments and detailed security-level analyses, ensuring a well-rounded approach to achieving total return through both income generation and capital appreciation.

Products and Services

• Bond Investments:

  TABD primarily allocates capital to a diversified portfolio of bonds, including those issued by government entities and corporations. This investment approach is aimed at providing a steady income stream while managing risk through diversification across various sectors and maturities.

• Securitized and Structured Credit:

  The fund invests in securitized assets and structured credit markets, which include asset-backed securities and other complex financial instruments. These investments are selected to enhance yield and provide opportunities for capital appreciation based on in-depth market research.

• Investment-Grade Focus:

  A significant portion of the portfolio is concentrated in investment-grade securities to minimize credit risk. However, TABD strategically allocates a portion of its investments to below-investment-grade debt, enabling potential higher returns when market conditions are favorable.

• Macroeconomic Analysis:

  The portfolio's positioning is informed by rigorous macroeconomic analysis, allowing for proactive adjustments in response to economic conditions. This analysis helps to identify trends and opportunities that can enhance the fund’s performance.

• Flexible Duration Management:

  TABD does not adhere to a specific duration target, providing the portfolio with the flexibility to manage interest rate exposure. This allows for dynamic adjustments to be made based on market conditions, enhancing the potential for capital appreciation.

• Selective Use of Derivatives:

  The fund selectively employs derivatives to manage exposure, adjust duration, or modify risk characteristics. This strategy allows TABD to refine its investment approach and enhance returns while managing potential risks.