Transamerica International Sm Cp Val R6 Overview
Transamerica International Sm Cp Val R6 (TSLSX) is an actively managed International Equity Foreign Small/Mid Blend fund. Transamerica launched the fund in 2024.
The investment seeks maximum long-term total return. The fund's sub-adviser invests under normal circ*mstances, at least 80% of its net assets (plus the amount of borrowings, if any, for investment purposes) in small-capitalization companies. The fund primarily invests in equity securities of small-cap companies located outside the United States. The sub-adviser seeks stocks that it believes are undervalued.
About Transamerica International Sm Cp Val R6 (TSLSX)
There are 2 members of the management team with an average tenure of 11.41 years: Brandon Harrell (2013), Stedman Oakey (2013). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: MSCI EAFE NR USD index with a weighting of 100%. Transamerica International Sm Cp Val R6 has 118 securities in its portfolio. The top 10 holdings constitute 20.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Transamerica International Sm Cp Val R6 is part of the Equity global asset class and is within the International Equity fund group. Transamerica International Sm Cp Val R6 has 99.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 99.7% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Transamerica International Sm Cp Val R6 has 0.3% of the portfolio in cash.
Assets Under Management
The fund has $10 million in total assets, which is below the $362 million average for the Foreign Small/Mid Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
Transamerica International Sm Cp Val R6 has a trailing dividend yield of 0.0%, which is below the 1.8% category average. The fund normally distributes its dividend income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
TSLSX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Transamerica International Sm Cp Val R6 expense ratio is high compared to funds in the Foreign Small/Mid Blend category. Transamerica International Sm Cp Val R6 has an expense ratio of 1.01%, which is 15% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Transamerica International Sm Cp Val R6 has a portfolio turnover rate of 18%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 49% for the Foreign Small/Mid Blend category.
Recently, in the month of May 2024, Transamerica International Sm Cp Val R6 returned 5.8%, which earned it a grade of A, as the Foreign Small/Mid Blend category had an average return of 4.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Transamerica International Sm Cp Val R6 Grades
Year to date, the fund has returned 9.4%, 4.2 percentage points better than the category, which translates into a grade of A. The fund has returned 20.2% over the past year (grade of A), 1.6% over the past three years (grade of A) and 9.4% per year over the past five years (grade of A) and 5.6% per year over the past 10 years (grade of A).
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