Transamerica to reorganize Diversified Growth, Mid-Cap Growth funds

By Angela McDaniels

Tacoma, Wash., Nov. 15 - Transamerica Funds plans to reorganize its Transamerica WMC Diversified Growth and Transamerica Morgan Stanley Mid-Cap Growth funds, according to a filing with the Securities and Exchange Commission.

The two funds are being reorganized into the Transamerica WMC Diversified Equity fund and the Transamerica Morgan Stanley Growth Opportunities fund, respectively.

The reorganization is expected to occur Feb. 10 and does not require shareholder approval.

Upon the completion of the reorganizations, each target fund shareholder will hold shares of the corresponding class of the corresponding destination fund with the same aggregate net asset value as that shareholder's holdings of the applicable class of shares of the target fund immediately prior to the reorganization.

Each target fund will be terminated after the closing date.

The investment objective of the WMC fund is to maximum long-term growth. It invests primarily in the common stocks of growth-oriented companies.

The advisory fees for the destination WMC fund will be the same as the target WMC fund: 0.73% of the first $500 million, 0.7% over $500 million up to $2.5 billion and 0.65% in excess of $2.5 billion.

The investment objective of the Morgan Stanley fund is to seek capital appreciation. It invests primarily in established and emerging companies with capitalizations within the range of companies included in the Russell Midcap Growth index.

The advisory fees for the destination Morgan Stanley fund will be 0.8% of the first $250 million, 0.75% over $250 million up to $500 million and 0.7% in excess of $500 million. For the target Morgan Stanley fund, the advisory fees are 0.8% of the first $1 billion and 0.775% in excess of $1 billion.

St. Petersburg, Fla.-based Transamerica Asset Management, Inc. will continue to act as investment adviser. Wellington Management Co., LLP will continue to act as sub-adviser to the WMC fund, and Morgan Stanley Investment Management Inc. will continue to act as sub-adviser to the Morgan Stanley fund.

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