Transamerica Core Bond Fund I3 (TMBTX)

Overview

The fund described is a financial instrument that primarily focuses on investment in a variety of debt securities that are considered to be of investment grade. This essentially means the fund aims to provide its investors with a relatively safe and stable form of investment by putting their money in high-quality debt instruments. The securities included in the fund's portfolio range from corporate bonds to government obligations, as well as specific types of mortgage-backed securities. The objective is to maintain a balanced and diversified portfolio that not only safeguards the principal investment but also offers potential returns. The fund operates under the principle of investing a significant majority of its assets, at least 80%, in fixed income securities, demonstrating a clear focus on creating a stable income source for its investors. Additionally, it employs a strategic approach to managing its portfolio duration, aiming to keep the weighted average duration within a range of 3 to 10 years to balance between risk and reward efficiently.

Products and Services

• Investment Grade Corporate Securities

  This category includes bonds issued by corporations that have been evaluated and determined to be of high credit quality by rating agencies. Investing in these securities provides a stable income with relatively low risk.

• U.S. Government Obligations

  These obligations are bonds or other forms of debt issued by the U.S. government, considered one of the safest investments due to the government's creditworthiness. They offer investors a reliable source of fixed income.

• Mortgage-Backed Securities Guaranteed by U.S. Government Agencies and Instrumentalities

  This class of securities is backed by pools of mortgage loans specifically guaranteed by U.S. government agencies or instrumentalities, providing a level of security and predictable income to investors.

• Private Residential Mortgage-Backed Securities

  Unlike the government-guaranteed options, these are issued by private entities and backed by residential mortgages. They typically offer higher yields but carry a greater risk, depending on the creditworthiness of the underlying mortgages.

• Fixed Income Securities Investment

  By dedicating at least 80% of its net assets (plus any borrowings for investment purposes) into fixed income securities, the fund aims to provide a consistent and predictable stream of income to its investors, focusing on capital preservation and income generation.