Strategy. The funds sub-advisers, Systematic Financial Management, L.P. and Thompson, Siegel & Walmsley LLC (the sub-advisers), seek to achieve the funds objective by investing, under normal circumstances, at least 80% of the funds net assets (plus the amount of borrowings, if any, for investment purposes) in small- and mid-cap equity securities (U.S. equity securities, American Depositary Receipts (ADRs) and foreign securities trading on U.S. markets). The fund defines small- and mid-cap equities as companies whose market capitalization falls within the range of securities comprising the Russell 2000 Index 1 and the Russell Midcap Index respectively, or within the range of the Russell 2500 Index, whichever is broader at the time of purchase. Over time, the capitalizations of the companies in the … Show more… The funds sub-advisers, Systematic Financial Management, L.P. and Thompson, Siegel & Walmsley LLC (the sub-advisers), seek to achieve the funds objective by investing, under normal circumstances, at least 80% of the funds net assets (plus the amount of borrowings, if any, for investment purposes) in small- and mid-cap equity securities (U.S. equity securities, American Depositary Receipts (ADRs) and foreign securities trading on U.S. markets). The fund defines small- and mid-cap equities as companies whose market capitalization falls within the range of securities comprising the Russell 2000 Index 1 and the Russell Midcap Index respectively, or within the range of the Russell 2500 Index, whichever is broader at the time of purchase. Over time, the capitalizations of the companies in the index will change. As they do, the size of the companies in which the fund invests may change. As of December 31, 2025, the market capitalization range of securities comprising the Russell 2000 Index was between $6 million and $ 31.29 billion, the market capitalization range of securities comprising the Russell Midcap Index was between $1.03 billion and $ 101.64 billion, and the market capitalization range of securities comprising the Russell 2500 Index was between $6 million and $37 billion. The funds investment manager, Transamerica Asset Management, Inc., determines the allocation of the funds assets between the funds sub-advisers and rebalances the allocation periodically to normally maintain an approximate allocation of 60% of the funds assets to Thompson, Siegel & Walmsley LLC and 40% of the funds assets to Systematic Financial Management, L.P. The fund emphasizes investments in common stocks. Thompson, Siegel & Walmsley LLC is the sub-adviser for the mid cap sleeve. In the mid-cap sleeve, the sub-adviser seeks to invest in companies it believes present a value or potential worth that is not recognized by prevailing market prices or that have experienced some fundamental changes and are intrinsically undervalued by the investment community. The sub-advisers mid-cap value process uses a combination of quantitative and qualitative methods and is based on a four-factor valuation screen. Factors one and two of the screen attempt to assess a companys discount to private market value relative to other mid-cap stocks. The third factor considers the relative earnings prospects of the company. The fourth factor involves looking at the companys recent price action. Systematic Financial Management, L.P. is the sub-adviser for the small-cap sleeve. In the small-cap sleeve, the sub-adviser generally will invest in common stocks of companies with small capitalizations that are attractively valued and possess low price cash flow ratios or, in the case of certain financial stocks, low price/earnings ratios and/or low price/book ratios. The sub-advisers security selection process generally favors companies with strong operating cash flow, strong free cash flow, limited financial leverage and strong debt coverage. Trends in balance sheet items including inventories, accounts receivable, and payables are scrutinized as well. The sub-adviser also reviews the companys products/services, market position, industry condition, financial and accounting policies and quality of management. The funds investment methodology unifies what both sub-advisers deem to be the best attributes of quantitative screening and fundamental research in an integrated and repeatable process designed to outperform the Russell 2500 Value Index over the long term. Under normal market conditions, cash and cash equivalents are generally less than 5% of the portfolio value. Value stocks as a group may be out of favor and underperform the overall equity market for a long period of time, for example, while the market favors growth stocks. The fund may invest up to 10% of its total assets in the securities of foreign issuers, including ADRs and foreign securities trading on U.S. markets. The fund may also invest in real estate investment trusts (REITs), and may invest up to 5% of its total net assets in exchange traded funds (ETFs). 1 Russell and other service marks and trademarks related to the Russell indexes are trademarks of the London Stock Exchange Group companies. Show less