Transamerica Funds plans October launch for Enhanced Muni fund

By Jennifer Chiou

New York, Aug. 16 - Transamerica Funds filed a prospectus dated Oct. 31 for its planned Transamerica Enhanced Muni fund, according to an N-1A filing with the Securities and Exchange Commission.

The muni fund will seek to maximize total return through a combination of current income that is exempt from federal income tax and capital appreciation.

Under normal circumstances, the fund will invest at least 80% of its net assets, plus the amount of borrowings, if any, for investment purposes, in municipal fixed-income securities, the interest from which is exempt from federal income tax and federal alternative minimum tax. The fund invests primarily in general obligation and revenue bonds issued by U.S. municipal issuers or those in U.S. territories and possessions.

The duration of the fund will vary between three and 10 years, and the fund's holdings may range in maturity from overnight to about 20 years.

The portfolio manager will be Matthew Dalton with Belle Haven Investments, LP as sub-adviser.

The fund will launch with class A, class C and class I shares. The ticker symbols have not yet been determined.

Class A shares will be subject to a 3.25% maximum sales charge. Class C shares will be subject to a 1% maximum deferred sales charge. There are no other shareholder fees.

Management fees will be 0.44% across the board. Taking into account a fee waiver agreement with the investment adviser, total annual fund operating expenses are expected to be 0.84% for class A, 1.43% for class C and 0.71% for class I shares.

St. Petersburg, Fla.-based Transamerica Asset Management, Inc. will act as the fund's investment adviser.

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