Investment Objective

Our goal in the TIM Small Growth portfolios is to provide superior risk-adjusted returns and long-term capital appreciation and to outperform relative benchmarks such as the Russell 2000 Growth and Russell 2500 Growth indexes over a full market cycle (typically 3-5 years).

Philosophy

  • Fundamental and research driven approach to investing in small company growth stocks
  • Team oriented investment decision-making process
  • Identify catalysts for secular and fundamental change
  • Companies that exhibit sustainable business models, superior managements and substantial increases in 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 $100 million; maximum market cap of $3 billion (at time of purchase)
  • Broadly diversified by industry and sector
  • Turnover range of 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 Small 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. Gross of fee returns include transactions costs and accrued income and dividends but do not reflect the deduction of investment advisory fees.  Prior to January 1, 2006 Net of fees returns are calculated based on actual accrued fees.  After January 1, 2006 net of fee performance is calculated using the monthly fraction of the highest annual management fee of 1.00%.  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 Small 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.

SMALL GROWTH COMPOSITE PRESENTATION

Period

Total Firm
Assets
(Millions)

Composite Assets

Periodic Performance Results

USD
(Millions)

Number of Accounts

Composite
Gross

Composite
Net

Russell 2000®

Growth

Russell 2500™

Growth

Composite Dispersion

2010 Q2

13,390

104

17

-5.57%

-5.81%

-9.22%

-9.77%

 

2010 Q1

16,768

138

7

13.42%

13.15%

7.61%

8.81%

 

2009

16,404

125

7

51.22%

49.77%

34.47%

41.66%

N/A

2008

14,464

112

10

-42.46%

-43.06%

-38.54%

-41.50%

0.9%

2007

23,804

544

22

22.90%

21.69%

7.05%

9.69%

0.1%

2006

23,380

554

24

6.87%

5.81%

13.35%

12.26%

0.3%

2005

19,668

503

24

5.64%

5.10%

4.15%

8.17%

0.1%

2004

 

187

17

11.53%

10.86%

14.31%

14.59%

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

7.11%

35.01%

-0.47%

5.85%

N/A

5.80%

 Composite Net

6.58%

33.70%

-1.47%

4.85%

N/A

4.89%

 Russell 2000® Growth

-2.31%

17.96%

-7.54%

1.14%

N/A

2.39%

 Russell 2500™ Growth

-1.82%

21.44%

-7.10%

1.81%

N/A

3.39%

 

Small Growth Composite contains fully discretionary equity accounts that invest in growth securities with a market capitalization between $100 million and $3 billion and for comparison purposes is measured against the Russell 2000® Growth Index. The Russell 2500™ Growth Index was the primary index from January 1, 2006, through December 31, 2009, and is currently presented as a secondary benchmark. This composite was previously known as Small/Mid Growth Composite and Small Cap Growth Plus Composite. Prior to December 31, 2009, the composite was defined as fully discretionary equity accounts that have a mandate of investing in small-cap growth securities with a maximum market capitalization of $5 billion; it has been redefined to more accurately reflect the investment strategy. The minimum account size for this composite is $1 million.

 

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 Small Growth Composite were conducted by Ashland Partners & Company LLP for the period since August 1, 2005. A copy of the verification report is available upon request.

 

The Small Growth Composite was created on April 1, 2004, and has an inception date of January 1, 2004. Performance presented prior to August 4, 2005, was established at Westcap Investors LLC (Westcap). Effective August 4, 2005, TIM acquired the investment advisory accounts of Westcap and no material change in personnel responsible for the investment management process occurred. The presentation conforms to the guidelines regarding the portability of investment results.

 

Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Composite policy requires the temporary removal of any portfolio incurring a client-initiated inflow or outflow of at least 10% of portfolio assets. Any account removed from the composite due to the occurrence of a significant flow is to be re-included in the composite at the beginning of the next measurement period (i.e., since January 1, 2006, the next month, and prior to January 1, 2006, the next quarter). 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. Prior to January 1, 2006, net-of-fee performance was calculated based on actual, accrued fees. After January 1, 2006, net-of-fee performance is calculated using the monthly fraction of the highest annual management fee of 1.00%. 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, as well as for the treatment of significant client-initiated flows, 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 Small Growth Composite is listed below; actual investment advisory fees incurred by clients may vary.

 

First $25 million                     1.00%

Next $25 million                     0.90%

Next $50 million                     0.85%

Remaining assets                 0.80%

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