Digital Assets

Transamerica Announces Fee Reductions on 26 Fund Share Classes

Transamerica has announced management fee reductions on 26 share classes for mutual funds and variable annuity funds.

Contingent upon share class, these reductions total 259 basis points annually and range from as much as 20 to two basis points per share class. The cumulative impact for 26 share classes is on approximately USD4.98 billion in combined assets as of June 30, 2020, the firm said in a press release.

These fee reductions are part of Transamerica's ongoing commitment to seek maximum value for investors, said the firm. This action is the second set of management fee reductions this year for Transamerica mutual funds and variable annuity funds. While the company's commitment to reassess fees is ongoing, this action is timely. It allows investors to help build additional financial solutions during some of the market's most turbulent times. This fee reduction is another example of how Transamerica continues to look for ways to enhance value to investors.

Tom Wald, Chief Investment Officer, Transamerica Asset Management, said: “We're pleased to offer these lower fee structures as they allow investors to enhance their long-term investment goals. By putting more of their money to work, these fee reductions can help fund shareholders better plan for the future.”

Transamerica Asset Management, which oversees the sub-advisers on all of Transamerica's funds, reports that it believes no single investment firm is the best at managing every asset class. It takes a diversified approach that applies the portfolio management experience of numerous and varied asset managers throughout the industry to give investors a full range of strategies. As of June 30, 2020, Transamerica Asset Management  maintained USD77 billion in net assets under management.

“Combining industry-leading portfolio management with lower fund fees is a core value proposition we look to provide,” Wald added.