Investment Objective

Our goal in the TIM Large Growth portfolios is to provide superior risk-adjusted returns and long-term capital appreciation and to outperform relative benchmarks such as the Russell 1000 Growth Index over a full market cycle (typically 3-5 years).

Philosophy

  • Fundamental and research driven approach to investing in large-company growth stocks
  • Team-oriented investment decision-making process
  • Identify catalysts for secular and fundamental change
  • Companies that exhibit sustainable business models, superior management teams and strong free cash flow
  • Attractive valuations based on discounted cash-flow analysis

Portfolio Structure

  • Concentrated portfolio of generally 25 to 35 securities
  • Minimum market cap of $3 billion (at time of purchse); no maximum market cap
  • Broadly diversified by industry and sector
  • Turnover range typically 20-40%
  • Generally fully invested

Monthly Returns available upon request:

info@timllc.com

Annualized and calendar year performance returns represent, and are supplemental information to, the Large Growth Composite presentation and disclosures of Transamerica Investment Management, LLC as provided within the performance window shown, which are integral part of this presentation.  Returns under one year are not annualized. Large Growth Composite contains fully discretionary large growth institutional equity accounts with approximately 50 issues in a growth discipline and for comparison purposes is measured against the Russell 1000 Index.  Gross of fee returns include transactions costs and accrued income and dividends but do not reflect the deduction of investment advisory fees. Net of fee performance is calculated using the monthly fraction of the highest annual management fee of 0.75%. As of January 4, 2010 the lead portfolio manager for this product changed.  Past performance is no guarantee of future results.

Material such as, but not limited to, portfolio level fundamentals (characteristics) are deemed supplemental information and complements the performance disclosures which are an integral part of this presentation.  Portfolio characteristics above reflect a representative account as of June 30, 2010, and are subject to change without notice. Individual account holdings may vary based on restrictions, substitutions, cash flows and other factors. Source for characteristics: Thomson Portfolio Analytics. Risk statistics are calculated using gross-of-fee returns versus the benchmarks shown-see Large Growth Composite presentation and disclosures for additional information on benchmarks; risk statistics calculated using net-of-fee returns may vary. Source for risk statistics: eVestment Analytics.

LARGE GROWTH COMPOSITE PRESENTATION

Period

Total Firm
Assets
(Millions)

Composite Assets

Periodic Performance Results

USD
(Millions)

Number of Accounts

Composite
Gross

Composite
Net

Russell 1000® Growth

Composite Dispersion

2010 Q2

13,390

1,086

12

-12.24%

-12.41%

-11.75%

 

2010 Q1

16,768

4,644

15

5.79%

5.59%

4.65%

 

2009

16,404

4,755

16

31.02%

30.06%

37.21%

1.2%

2008

14,464

4,339

21

-44.98%

-45.41%

-38.44%

0.6%

2007

23,804

8,923

26

17.16%

16.29%

11.81%

0.6%

2006

23,380

8,326

20

10.11%

9.29%

9.07%

1.1%

2005

19,668

3,962

8

17.20%

16.33%

5.26%

0.2%

2004

22,043

7,498

37

16.66%

15.80%

6.30%

1.4%

2003

14,657

3,914

18

32.61%

31.64%

29.75%

0.6%

2002

11,633

2,616

13

-22.57%

-23.17%

-27.88%

0.7%

2001

11,778

2,988

11

-16.53%

-17.16%

-20.42%

N/A

2000

9,413

2,344

≤5

-6.45%

-7.15%

-22.42%

N/A

1999

10,935

3,675

6

33.69%

32.71%

33.16%

N/A

1998

42,234

2,726

≤5

41.10%

40.08%

38.71%

N/A

1997

37,743

1,920

9

46.97%

45.90%

30.49%

N/A

1996

33,404

685

≤5

29.70%

28.76%

23.12%

N/A

1995

29,039

434

≤5

45.88%

44.82%

37.18%

N/A

1994

25,919

246

≤5

5.30%

4.52%

2.62%

N/A

 

N/A – Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year.

Performance Results as of June 30, 2010

(Results for periods greater than 12 months have been annualized)

 

YTD

1 YEAR

3 YEAR

5 YEAR

10 YEAR

INCEPTION

 Composite Gross

-7.16%

12.32%

-9.96%

0.16%

-1.30%

10.54%

 Composite Net

-7.51%

11.49%

-10.65%

-0.59%

-2.04%

9.72%

 Russell 1000® Growth

-7.64%

13.62%

-6.91%

0.38%

-5.14%

5.88%

 

Large Growth Composite contains fully discretionary large growth institutional equity accounts with up to approximately 50 issues in a growth discipline and for comparison purposes is measured against the Russell 1000® Growth Index. This composite was previously known as Large Growth (Institutional) Composite. Prior to April 1, 2005, the composite was defined as fully discretionary large growth institutional equity accounts; it has been redefined to more accurately reflect the investment strategy. Beginning January 1, 2002, the minimum account size for this composite is $10 million. Prior to January 1, 2002, no minimum account size was required.

 

Transamerica Investment Management, LLC (TIM) is an SEC-registered investment adviser that commenced operations on January 1, 2000. TIM is controlled by Transamerica Investment Services, LLC (formerly Transamerica Investment Services, Inc.), which became part of the AEGON Group of companies on July 21, 1999.

 

Transamerica Investment Management, LLC has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). TIM’s compliance with GIPS has been verified for the period January 1, 2000, through June 30, 2008, by Ashland Partners & Company LLP. In addition, performance examinations on the Large Growth Composite were conducted by Ashland Partners & Company LLP for the period since January 1, 2000. A copy of the verification report is available upon request.

 

The Large Growth Composite was created on July 1, 2001, and has an inception date of January 1, 1994. Performance presented prior to January 1, 2000, was generated under Transamerica Investment Services, Inc. The manager primarily responsible for performance prior to January 4, 2010, is no longer an employee of the firm but, as of July 1, 2010, serves as a consultant to the firm, providing advice on management of the portfolio.

 

Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. The U.S. dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income. Net-of-fee performance is calculated using the monthly fraction of the highest annual management fee of 0.75%. The annual composite dispersion measure presented is an asset-weighted standard deviation calculation based on accounts in the composite the entire year. Additional information regarding policies for calculating and reporting returns is available upon request. Past performance is not indicative of future results and individual account performance may vary. The firm maintains a complete list and description of composites, which is available upon request.

 

The investment management fee schedule for the Large Growth Composite is listed below; actual investment advisory fees incurred by clients may vary.

 

First $25 million                     0.75%

Next $25 million                     0.65%

Next $50 million                     0.55%

Next $150 million                   0.50%

Remaining assets                 0.45%