Investment Objective

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

Philosophy

  • Fundamental and research driven approach to investing in small-to-mid sized growth companies that have market caps greater than $1 billion.
  • Team oriented investment decision-making process encompassing in-house research
  • Identify catalysts for secular and fundamental change
  • Companies that exhibit: sustainable business models, superior managements and substantial increases in discretionary free cash flow
  • Attractive valuations based on discounted cash flow analysis

Portfolio Structure

  • Concentrated portfolio of generally 35 to 50 securities
  • Minimum market cap of $1 billion; maximum market cap of $15 billion (at time of purchase)
  • Broadly diversified by industry and sector
  • Turnover range typically 40-60%
  • Generally fully invested

Monthly Returns available upon request:

info@timllc.com

Annualized and calendar year performance returns represent, and are supplemental information to, the Mid 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.  Mid  Growth Composite contains fully discretionary mid growth equity accounts  and for comparison purposes is measured against the Russell MidCap Growth Index.  The composite was measured against the Russell 2500 Growth Index prior to April 1, 2005 and is presented as supplemental information only.  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 0.85%.

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 Mid 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.

MID GROWTH COMPOSITE PRESENTATION

Period

Total Firm
Assets
(Millions)

Composite Assets

Periodic Performance Results

USD
(Millions)

Number of Accounts

Composite
Gross

Composite
Net

Russell Midcap® Growth

Russell 2500™ Growth

Composite Dispersion

2010 Q2

13,390

704

≤5

-10.08%

-10.28%

-10.20%

-9.77%

 

2010 Q1

16,768

865

≤5

8.16%

7.93%

7.67%

8.81%

 

2009

16,404

821

≤5

37.86%

36.72%

46.29%

41.66%

N/A

2008

14,464

580

≤5

-40.65%

-41.18%

-44.32%

-41.50%

N/A

2007

23,804

1,333

≤5

24.17%

23.13%

11.43%

9.69%

N/A

2006

23,380

1,293

≤5

5.59%

4.70%

10.66%

12.26%

N/A

2005

19,668

1,301

≤5

16.71%

15.74%

12.10%

8.17%

N/A

2004

22,043

1,257

≤5

17.00%

16.03%

15.48%

14.59%

N/A

2003

14,657

846

≤5

32.92%

31.82%

42.72%

46.31%

N/A

2002

11,633

353

≤5

-14.94%

-15.67%

-27.40%

-29.08%

N/A

2001

11,778

296

≤5

-19.92%

-20.61%

-20.16%

-10.83%

N/A

2000

9,413

335

≤5

-24.64%

-25.30%

-11.75%

-16.10%

N/A

1999

10,935

393

≤5

95.73%

94.16%

51.30%

55.50%

N/A

1998

42,234

211

≤5

82.39%

80.91%

17.87%

3.09%

N/A

1997 Q4

37,743

11

≤5

-3.94%

-4.15%

-2.76%

-8.01%

 

1997 Q3

 

10

≤5

30.58%

30.33%

13.99%

16.64%

 

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

-2.75%

18.13%

-3.15%

4.35%

-1.05%

11.98%

 Composite Net

-3.16%

17.14%

-3.97%

3.47%

-1.89%

11.04%

 Russell Midcap® Growth

-3.31%

21.30%

-7.53%

1.37%

-1.98%

4.69%

 Russell 2500™ Growth

-1.82%

21.44%

-7.10%

1.81%

-1.06%

3.97%

 Historical Blended Benchmark

-3.31%

21.30%

-7.53%

1.37%

-1.28%

3.78%

 

Mid Growth Composite contains fully discretionary mid-growth equity accounts and for comparison purposes is measured against the Russell Midcap® Growth Index. The Russell 2500™ Growth Index was the primary index prior to April 1, 2005, and is currently presented as supplemental information only. The benchmark change was made because the Russell Midcap® Growth Index more accurately reflects the composite strategy. This composite was previously known as Small/Mid Growth Composite. 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 Mid 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 Mid Growth Composite was created on July 1, 2001, and has an inception date of July 1, 1997. Performance presented prior to January 1, 2000, was generated under Transamerica Investment Services, Inc.

 

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 0.85%. 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 Mid Growth Composite is listed below; actual investment advisory fees incurred by clients may vary.

 

First $25 million                     0.85%

Next $25 million                     0.80%

Next $50 million                     0.75%

Remaining assets                 0.70%