TA Vanguard Small-Cap Index Ret Opt
Release Date: 12-31-2022
TA Vanguard Small-Cap Index Ret Opt
..........................................................................................................................................................................................................................................................................................................................................
Transamerica Asset Classification
Small/Mid-Cap Stocks Small-Cap Blend Stocks
Benchmark Russell 2000 TR USD
Overall Morningstar RatingTM
QQQ
Morningstar Return Average
Morningstar Risk Below Average
Rated against 585 Small Blend funds. An investment's overall Morningstar Rating, based on its risk-adjusted
return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Information
The TA Vanguard Small-Cap Index Ret Opt, a TLIC Separate Account, invests in the Vanguard Small-Cap Index Fund (Admiral Class Shares), a mutual fund (Fund).
Investment Objective & Strategy
The investment seeks to track the performance of the CRSP US Small Cap Index that measures the investment return of small-capitalization stocks.
The fund employs an indexing investment approach designed to track the performance of the CRSP US Small Cap Index, a broadly diversified index of stocks of small U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.
Operations
Redemption Fee/Term .
Expense Ratio
Type 7*: 0.80% of fund assets
Underlying Incept Date 11-13-00
Underlying Initial Share 10-03-60
Class Incept Date
Separate Account Incept 08-30-06 Closed to New Investors .
Trading Restrictions
Type C*
................................................................................................
*See Disclosure Page under "Charges, Fees and Expenses" for
more details.
Portfolio Manager(s)
William Coleman. Since 2016. Gerard O'Reilly. Since 2016.
................................................................................................
Advisor
Vanguard Group Inc
Subadvisor
.
Hypothetical Growth of $10,000 start date 12-31-11
12-31-22
.In...v.e..s..t..m...e..n..t..C...h..o..i.c..e............................................................$..2...8..,.6..3..6.
Benchmark
$27,570
Notes
Effective 09-30-15, the Vanguard Small-Cap Index Ret Opt changed its name to the TA Vanguard Small-Cap Index Ret Opt. This Separate Account invested in the Signal Class Shares of the underlying mutual fund prior to 10-25-14 but currently invests in the Admiral Class Shares. Prior to 01-24-11, this Separate Account invested in the Investor Class Shares of the underlying mutual fund. No adjustment has been made to performance prior to 01-24-11 to reflect the difference in expenses and fees between the Investor Class Shares and the Signal Class Shares. The TA Vanguard Small-Cap Index Ret Opt historical performance prior to the Separate Account inception is calculated utilizing actual past performance for the underlying mutual fund and adjusted for the Separate Account Maintenance (SAM) and Administrative (Admin) Charges.
Performance
Investment Choice Annual Returns as of year-end
Total Ret %
Bmark %
2015
-4.36
-4.41
2016
17.39
21.31
2017
15.37
14.65
2018
-9.99
-11.01
2019
26.42
25.52
2020
18.22
19.96
2021
16.86
14.82
Fund Rank %
46 77 20 24 25 23 86
Trailing Returns as of 12-31-22
Total Ret %
YTD 3 Mo 1 Yr 3Yr Avg 5Yr Avg 10Yr Avg Since Incep
-18.23 7.77
-18.23 4.15 5.15 9.33 .
Bmark %
-20.44 6.23
-20.44 3.10 4.13 9.01 .
Fund Rank %
69 75 69 69 51 48 .
Morningstar Proprietary Statistics
Morningstar RatingTM Fund Rank Percentile Out of # of Investments
1-Year
.
3-Year
QQQ
5-Year
QQQ
10-Year
QQQ
69
69
51
48
611
585
543
363
Performance Disclosure: The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value will fluctuate. Upon redemption, shares may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. Go to TA- to obtain performance current to the most recent month-end. See performance section of the disclosure page for more important information.
Investment choices are available from Transamerica Life Insurance Company (TLIC or Transamerica) under contract form # TGP-439-194, TGP-416-192/194, TGP-430-192/194, CNT-TALIAC 05-02, or CNT-TLIC 10-05, group variable annuity contracts underwritten by TLIC. TLIC is not authorized in New York and does not do business in New York. Contract Form and number may vary, and the Investment Choices may not be available in all jurisdictions. Contract fees and charges may apply. For complete information, contact your Transamerica representative.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
Underlying Portfolio Analysis
Composition as of 12-31-22
U.S. Stocks Non U.S. Stocks Bonds Cash Other
% Assets
97.5 0.7 0.0 1.8 0.0
Morningstar Style BoxTM as of 12-31-22
% Mkt Cap
Large Mid Small
.G..i.a..n..t.........................................0.....0..0.
Large
0.31
Medium
39.44
.S..m...a..l.l......................................5..1.....6..6.
Value Blend Growth
Micro
8.58
Morningstar Sectors as of 12-31-22
% Fund
.h.......C..y..c..l.i.c.a..l............................................................................3..9....6..8.
r Basic Materials
4.48
t Consumer Cyclical
12.04
y Financial Services
14.25
u Real Estate
8.91
.j.......S..e..n..s..i.t.i.v..e..........................................................................4..0....7..3.
i Communication Services
2.24
o Energy
5.42
p Industrials
18.30
a Technology
14.77
.k.......D..e..f.e..n...s.i.v..e.........................................................................1..9....5..9.
s Consumer Defensive
4.19
d Healthcare
12.22
f Utilities
3.18
Top 10 Holdings as of 12-31-22
% Assets
IDEX Corp
0.39
Targa Resources Corp
0.38
Steel Dynamics Inc
0.37
Atmos Energy Corp
0.36
A...P..A....C..o..r.p...................................................................................0....3..4.
Bunge Ltd
0.34
Fair Isaac Corp
0.34
First Solar Inc
0.34
Howmet Aerospace Inc
0.33
Booz Allen Hamilton Holding Corp Class A
0.31
.......................................................................................................
Total Number of Stock Holdings
1487
Total Number of Bond Holdings
0
Annual Turnover Ratio %
17.00
Equity Statistics as of 12-31-22
P/E Ratio P/B Ratio GeoAvgCap ($mil)
Port Avg
12.85 1.93
4,881.41
Risk Measures as of 12-31-22 Std Dev Beta Sharpe Ratio Alpha R-squared
3-Year
25.50 0.95 0.25 1.07 97.58
5-Year
22.62 0.95 0.28 1.05 97.90
10-Year
18.10 0.93 0.54 0.79 97.29
1241
?2023 Morningstar, Inc., Morningstar Investment ProfilesTM 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to
Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar
nor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee of future
performance. Visit our investment website at .
?
Release Date: 12-31-2022
Principal Risks
Loss of Money, Not FDIC Insured, Market/Market Volatility, Equity Securities, ETF, Early Close/Late Close/Trading Halt, Management, Market Trading ....................................................................................................... For more information please see the Principal Risks section of the Disclosure Page.
1241
?2023 Morningstar, Inc., Morningstar Investment ProfilesTM 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to
Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar
nor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee of future
performance. Visit our investment website at .
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Disclosure
Page 1 of 16
The investment fact sheets must be accompanied by this disclosure statement. The performance data given represents past performance and should not be considered indicative of future results. An investment in these investment choices, other than the Transamerica Stable Value investment choice(s), is subject to market risk. Principal value and investment return will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original investment. Current performance may be lower or higher than the performance data quoted herein. Separate account investment choice statistics change over time. The investment choice is not FDIC insured, may lose value and is not guaranteed by a bank or other financial institution.
The separate account investment choices offered are exempt from registration with the SEC; therefore, no prospectuses are filed for them. However, certain of the separate account investment choices, other than the Stable Value investment choices, invest in mutual funds which are subject to SEC registration.
Translations of any materials or text into languages other than English are intended solely as a convenience to the nonEnglish language speakers and are not legally binding. Such materials and their translation help to facilitate the administration and operation of the plan and are not intended as an investment solicitation or an investment recommendation. We have attempted to provide an accurate translation of the original material in English, but due to the nuances in translating to a foreign language, slight differences may exist. Assistance may be available to nonEnglish language speakers in order to help understand the retirement plan materials and any applicable related investment disclosure materials (which may be available only in the English language) for the investment options under the plan. Such assistance may be accessed through your employer or by calling our Customer Contact Center and asking to speak with a Spanish-speaking representative. You should carefully review the content of any prospectus applicable to an investment before you invest.
Prospectuses and summary prospectus, if applicable, for these mutual funds can be ordered directly from the fund company or obtained upon request from Transamerica Retirement Solutions at TA-. Investors should consider the investment objectives, risks, and charges and expenses of the fund carefully before investing. The prospectus and summary prospectus, if applicable, for each fund contains this and other important information about that fund. Read each prospectus carefully before investing. Additional information on all the investment choices is available on the investment fact sheets.
Performance Unless otherwise noted, all data is shown as of the release date of these investment fact sheets. Performance shown is average annual total separate account investment choice returns (except 3 months and year-to-date) for the period indicated, net of the total operating expenses of the separate account and underlying investment (if applicable) as listed on the individual investment fact sheets. Performance returns reflect reinvestment of dividends and capital gains distributions. Performance does not reflect application of the contract asset charges and any discontinuance charges or service fees deducted from an account: such charges and
fees would reduce a participant's return.
For separate account investment choices invested in mutual fund shares, except as otherwise indicated, historical performance prior to the separate account investment choice inception date is calculated utilizing past performance for the underlying mutual fund.
Performance shown since inception is from the inception date of the separate account or underlying investment as described on the individual investment fact sheets. See individual investment fact sheet for the date of inception.
While performance prior to the inception of the separate account is intended to provide insight into how the strategy has performed historically, it is important to remember this is not the actual performance of the separate account and future performance of the separate account may differ. No representation is made that the separate account's performance would have been the same as the preinception performance had the separate account been in existence during such time and the related performance of the Underlying Fund has certain limitations which should be considered. For example, it does not reflect the current investment strategy or the actual trading of the separate account and due to a number of factors including, but not limited to asset flows or market disruptions, may result in differences in performance between the separate account and the Underlying Fund. Moreover, there is no guarantee that the investment strategy of the separate account and related accounts will be the same going forward.
The benchmarks are unmanaged indices and have no fees or expense charges. One cannot invest directly in an index.
Fund Ranking: This is the total return percentile rank within each Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. Historical percentile ranks are based on a snapshot of the funds as they were at the time of the calculation. Percentile ranks within categories are most useful in those groups that have a large number of funds. For small universes, funds will be ranked at the highest percentage possible. For instance, if there are only two utility funds with 10-year average total returns, Morningstar will assign a percentile rank of 1 to the top-performing fund, and the second fund will earn a percentile rank of 51 (indicating the fund underperformed 50% of the sample).
Hypothetical Growth: The value of a hypothetical $10,000 investment over the past 10 years (or since inception for investment choices lacking 10-year history). Data assumes reinvestment of dividends and capital gains. Results reflect past performance and do not guarantee future results.
Adjusted Historical Returns and Extended Performance Rating: Morningstar provides adjusted historical returns and an extended performance rating for some mutual funds in its universe. This means that any share class that doesn't have a 10-year performance history may show adjusted returns and receive a hypothetical Morningstar Rating based on the oldest surviving share class of the fund. Morningstar will adjust the performance history of the original portfolio to
reflect any differences in fees between the original share class and the new share class. Because share classes are based on the same underlying portfolio of securities, the only differences in performance can be attributable to fees. First, Morningstar computes the funds' new return stream by appending an adjusted return history of the oldest share class. Next, the Extended Performance Rating is determined by comparing the adjusted-historical returns to the current open-end mutual fund universe to identify placement in the bell curve used to assign the Morningstar Rating.
Morningstar RatingTM The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchangetraded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
For private funds, the Morningstar Rating presented is hypothetical, because Morningstar does not independently analyze private funds. Rather, the rating is assigned as a means to compare these funds with the universe of mutual funds that Morningstar rates. The evaluation of this investment does not affect the retail mutual fund data published by Morningstar.
Morningstar Return The Morningstar Return rates a fund's performance relative to other managed products in its Morningstar Category. It is an assessment of a product's excess return over a risk-free rate (the return of the 90-day Treasury Bill) in comparison with the products in its Morningstar category. In each Morningstar category, the top 10% of products earn a High Morningstar Return (High), the next 22.5% Above Average (+Avg), the middle 35% Average (Avg), the next 22.5% Below Average (Avg), and the bottom 10% Low (Low). Morningstar Return is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the product. Products with less than three years of performance history are not rated.
?2023 Morningstar, Inc., Morningstar Investment ProfilesTM 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee of future performance. Visit our investment website at .
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Disclosure
Page 2 of 16
Morningstar Risk Morningstar Risk evaluates a fund's downside volatility relative to that of other products in its Morningstar Category. It is an assessment of the variations in monthly returns, with an emphasis on downside variations, in comparison with the products in its Morningstar category. In each Morningstar category, the 10% of products with the lowest measured risk are described as Low Risk (Low), the next 22.5% Below Average (-Avg), the middle 35% Average (Avg), the next 22.5% Above Average (+Avg), and the top 10% High (High). Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the product. Products with less than three years of performance history are not rated.
Asset Classes The investment choices have been assigned to various asset classes by Transamerica Retirement Solutions. They may not be representative of that particular asset class in the future. The asset classes are described under "Principal Risk Definitions".
Risk Measures R-squared reflects the percentage of an investment choice's movements that are explained by movements in its benchmark index, showing the degree of correlation between the investment choice and the benchmark.
Beta is a measure of an investment choice's sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market, and a portfolio with a beta less than 1 is less volatile than the market.
Alpha measures the difference between an investment choice's actual returns and its expected performance, given its level of risk (as measured by beta). Alpha is often considered to represent the value that a portfolio manager adds by actively managing the portfolio.
Sharpe ratio is the average return, less the risk free return, divided by the standard deviation of return. The ratio measures the relationship of reward to risk in an investment strategy. The higher the ratio, the safer the strategy.
Standard deviation is a statistical measure of the degree to which an individual value in a probability distribution tends to vary from the mean of the distribution. It is widely applied in modern portfolio theory, for example, where the past performance of securities is used to determine the range of possible future performances and a probability is attached to each performance. The standard deviation of performance can then be calculated for each security and for the portfolio as a whole. The greater the degree of dispersion, the greater the risk. Standard deviation, therefore, is a statistical measure of the volatility of the investment choice's returns.
Morningstar Style BoxTM
The Morningstar Style BoxTM reveals a fund's investment strategy as of the date noted on this report.
For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth.) A darkened cell in the style box matrix indicates the weighted average style of the portfolio.
For portfolios holding fixed-income investments, a Fixed Income Style Box is calculated. The vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. There are three credit categories - "High", "Medium", and "Low"; and there are three interest rate sensitivity categories - "Limited", "Moderate", and "Extensive"; resulting in nine possible combinations. As in the Equity Style Box, the combination of credit and interest rate sensitivity for a portfolio is represented by a darkened square in the matrix. Morningstar uses credit rating information from credit rating agencies (CRAs) that have been designated Nationally Recognized Statistical Rating Organizations (NRSROs) by the Securities and Exchange Commission (SEC) in the United States. For a list of all NRSROs, please visit https:// ocr/ocr-current-nrsros.html. Additionally, Morningstar will use credit ratings from CRAs which have been recognized by foreign regulatory institutions that are deemed the equivalent of the NRSRO designation. To determine the rating applicable to a holding and the subsequent holding weighted value of a portfolio two methods may be employed. First is a common methodology approach where if a case exists such that two CRAs have rated a holding, the lower rating of the two should be applied; if three or more CRAs have rated a holding, the median rating should be applied; and in cases where there are more than two ratings and a median rating cannot be determined, the lower of the two middle ratings should be applied. Alternatively, if there is more than one rating available an average can be calculated from all and applied.
Please Note: Morningstar, Inc. is not an NRSRO nor does it issue a credit rating on the fund. Credit ratings for any security held in a portfolio can change over time.
Morningstar uses the credit rating information to calculate a weighted-average credit quality value for the portfolio. This value is based only upon those holdings which are considered to be classified as "fixed income", such a government, corporate, or securitized issues. Other types of holdings such as equities and many, though not all, types of derivatives are excluded. The weighted-average credit quality value is represented by a rating symbol which corresponds to the long-term rating symbol schemas employed by most CRAs. Note that this value is not explicitly published but instead serves as an input in the Style Box calculation. This symbol is then used to map to a Style Box credit quality category of "low," "medium," or "high". Funds with a "low" credit quality category are those whose weighted-average credit quality is determined to be equivalent to the commonly used High Yield classification, meaning a rating below "BBB", portfolios assigned to the "high" credit category have either a "AAA" or "AA+" average credit quality value, while "medium" are those with an average rating of "AA-" inclusive to "BBB-". It is expected and intended that the majority of portfolios will be assigned a credit category of "medium".
For assignment to an interest-rate sensitivity category, Morningstar uses the average effective duration of the portfolio. From this value there are three distinct methodologies employed to determine assignment to category. Portfolio which are assigned to Morningstar municipal-bond categories employ static breakpoints between categories. These breakpoints are: "Limited" equal to 4.5 years or less, "Moderate" equal to 4.5 years to less than 7 years; and "Extensive" equal to more than 7 years. For portfolios assigned to Morningstar categories other than U.S. Taxable, including all domiciled outside the United States, static duration breakpoints are also used: "Limited" equals less than or equal to 3.5 years, "Moderate" equals greater than 3.5 years but less than or equal to 6 years, and "Extensive" is assigned to portfolios with effective durations of more than 6 years.
Note: Interest-rate sensitivity for non-U.S. domiciled portfolios (excluding those in Morningstar convertible categories) may be assigned using average modified duration when average effective duration is not available.
For portfolios Morningstar classifies as U.S. Taxable FixedIncome, interest-rate sensitivity category assignment is based on the effective duration of the Morningstar Core Bond Index (MCBI). The classification assignment is dynamically determined relative to the benchmark index value. A "Limited" category will be assigned to portfolios whose average effective duration is between 25% to 75% of MCBI average effective duration, where the average effective duration is between 75% to 125% of the MCBI the portfolio will be classified as "Moderate", and those portfolios with an average effective duration value 125% or greater of the average effective duration of the MCBI will be classified as "Extensive".
Charges, Fees and Expenses Deposits made by plan participants are not subject to any front-end loads/sales fees of the underlying mutual fund. Therefore, such fees are not reflected in the performance reported.
Type 1: The expense ratio quoted reflects the maximum total operating expenses, of the investment choice, which include the Separate Account Maintenance and Investment Account Class I Administrative Charges assessed by Transamerica, if applicable. The actual expense ratio experienced may be less than the expense ratio quoted. There may also be charges to your balance in the separate accounts for contract asset charges, discontinuance charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 2: The expense ratio quoted reflects the total operating expenses, of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges, discontinuance charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 3: The expense ratio quoted reflects the maximum total operating expenses, of the investment choice which include the underlying TLIC Separate Account Maintenance and
?2023 Morningstar, Inc., Morningstar Investment ProfilesTM 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee of future performance. Visit our investment website at .
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Disclosure
Page 3 of 16
Investment Account Class VIII Administrative Charges assessed by Transamerica, if applicable. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 4: The expense ratio quoted reflects the total operating expenses, of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 5: The expense ratio quoted reflects the maximum total operating expenses, of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class VII Administrative Charge assessed by Transamerica and the total operating expenses of the underlying investment, net of any fee waivers.
Type 6: The expense ratio quoted reflects the maximum total operating expenses, of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class VII Administrative Charge assessed by Transamerica.
Type 7: The expense ratio quoted reflects the maximum total operating expenses, of the investment choice, which include the Separate Account Maintenance and Administrative Charges assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges, discontinuance charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 8: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class VIII Administrative Charges assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 9: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class XX Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers.
Type 10: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which consist of the underlying TLIC Separate Account Maintenance and Investment Account Class XX Administrative Charges assessed by Transamerica.
Type 11: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which
consist of the underlying TLIC Separate Account Maintenance and Investment Account Class IX Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers.
Type 12: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which consist of the underlying TLIC Separate Account Maintenance and Investment Account Class IX Administrative Charges assessed by Transamerica.
Type 13: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class X Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 14: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class XI Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 15: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class XII Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 16: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class XIII Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 17: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class XIV Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in
the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 18: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class XV Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 19: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 201 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 20: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 201 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 21: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 202 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 22: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 202 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 23: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 301 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service
?2023 Morningstar, Inc., Morningstar Investment ProfilesTM 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee of future performance. Visit our investment website at .
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Disclosure
Page 4 of 16
fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 24: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 301 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 25: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 302 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 26: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 302 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 27: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 203 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 28: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 302 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 29: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 30 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 30: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which
include the underlying TLIC Separate Account Maintenance and Investment Account Class 30 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 31: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 91 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 32: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 91 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 33: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 32 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 34: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 31 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 35: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 403 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 36: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 405 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract,
which are not reflected on these fact sheets.
Type 37: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 406 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment (if applicable), net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 38: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 404 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 39: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 50 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 40: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 50 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 41: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 51 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 42: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 51 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 43: The expense ratio quoted reflects the maximum
?2023 Morningstar, Inc., Morningstar Investment ProfilesTM 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee of future performance. Visit our investment website at .
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Disclosure
Page 5 of 16
total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 32 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 44: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 32 Administrative Charge, assessed by Transamerica. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 45: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance and Investment Account Class 80 Administrative Charge, assessed by Transamerica (if applicable), and the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 46: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance Charge, assessed by Transamerica (if applicable). For separate accounts that invest in underlying investments, the expense ratio also includes any expenses collected by the underlying investment, if applicable. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 47: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which reflects the total operating expenses of the underlying investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 48: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which include the underlying TLIC Separate Account Maintenance Charge, assessed by Transamerica (if applicable). For separate accounts that invest in underlying investments, the expense ratio also includes any expenses collected by the underlying investment, if applicable. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheets.
Type 49: The expense ratio quoted reflects the maximum total operating expenses of the investment choice, which reflects the total operating expenses of the underlying
investment, net of any fee waivers. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract, which are not reflected on these fact sheetss.
Principal Risk Definitions (except BlackRock investments) Active Management: The investment is actively managed and subject to the risk that the advisor's usage of investment techniques and risk analyses to make investment decisions fails to perform as expected, which may cause the portfolio to lose value or underperform investments with similar objectives and strategies or the market in general.
Amortized Cost: If the deviation between the portfolio's amortized value per share and its market-based net asset value per share results in material dilution or other unfair results to shareholders, the portfolio's board will take action to counteract these results, including potentially suspending redemption of shares or liquidating the portfolio.
Asset Transfer Program: The portfolio is subject to unique risks because of its use in connection with certain guaranteed benefit programs, frequently associated with insurance contracts. To fulfill these guarantees, the advisor may make large transfers of assets between the portfolio and other affiliated portfolios. These transfers may subject the shareholder to increased costs if the asset base is substantially reduced and may cause the portfolio to have to purchase or sell securities at inopportune times.
Bank Loans: Investments in bank loans, also known as senior loans or floating-rate loans, are rated below-investment grade and may be subject to a greater risk of default than are investment-grade loans, reducing the potential for income and potentially leading to impairment of the collateral provided by the borrower. Bank loans pay interest at rates that are periodically reset based on changes in interest rates and may be subject to increased prepayment and liquidity risks.
Capitalization: Concentrating assets in stocks of one or more capitalizations (small, mid, or large) may be subject to both the specific risks of those capitalizations as well as increased volatility because stocks of specific capitalizations tend to go through cycles of beating or lagging the market as a whole.
Cash Drag: The portfolio may fail to meet its investment objective because of positions in cash and equivalents.
Cash Transactions: Redemptions of exchange-traded fund shares for cash, rather than in-kind securities, may require the portfolio to sell securities. This may increase shareholder tax liability, potentially through capital gain distributions.
China Region: Investing in the China region, including Hong Kong, the People's Republic of China, and Taiwan, may be subject to greater volatility because of the social, regulatory, and political risks of that region, as well as the Chinese government's significant level of control over China's economy and currency. A disruption of relations between China and its neighbors or trading partners could severely impact China's export-based economy.
Closed-End Fund: Investments in closed-end funds ("CEF") generally reflect the risks of owning the underlying securities, although they may be subject to greater liquidity risk and higher costs than owning the underlying securities directly because of their management fees. Shares of CEFs are subject to market trading risk, potentially trading at a premium or discount to net asset value.
Commodity: Investments in commodity-related instruments are subject to the risk that the performance of the overall commodities market declines and that weather, disease, political, tax, and other regulatory developments adversely impact the value of commodities, which may result in a loss of principal and interest. Commodity-linked investments face increased price volatility and liquidity, credit, and issuer risks compared with their underlying measures.
Compounding: Because the investment is managed to replicate a multiple or inverse multiple of an index over a single day (or similar short-term period), returns for periods longer than one day will generally reflect performance that is greater or less than the target in the objective because of compounding. The effect of compounding increases during times of higher index volatility, causing long-term results to further deviate from the target objective.
Conflict of Interest: A conflict of interest may arise if the advisor makes an investment in certain underlying funds based on the fact that those funds are also managed by the advisor or an affiliate or because certain underlying funds may pay higher fees to the advisor do than others. In addition, an advisor's participation in the primary or secondary market for loans may be deemed a conflict of interest and limit the ability of the investment to acquire those assets.
Convertible Securities: Investments in convertible securities may be subject to increased interest-rate risks, rising in value as interest rates decline and falling in value when interest rates rise, in addition to their market value depending on the performance of the common stock of the issuer. Convertible securities, which are typically unrated or rated lower than other debt obligations, are secondary to debt obligations in order of priority during a liquidation in the event the issuer defaults.
Country or Region: Investments in securities from a particular country or region may be subject to the risk of adverse social, political, regulatory, or economic events occurring in that country or region. Country- or region-specific risks also include the risk that adverse securities markets or exchange rates may impact the value of securities from those areas.
Credit and Counterparty: The issuer or guarantor of a fixedincome security, counterparty to an over-the-counter derivatives contract, or other borrower may not be able to make timely principal, interest, or settlement payments on an obligation. In this event, the issuer of a fixed-income security may have its credit Rating downgraded or defaulted, which may reduce the potential for income and value of the portfolio.
Credit Default Swaps: Credit default swaps insure the buyer
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Disclosure
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in the event of a default of a fixed-income security. The seller of a credit default swap receives premiums and is obligated to repay the buyer in the event of a default of the underlying creditor. Investments in credit default swaps may be subject to increased counterparty, credit, and liquidity risks.
Currency: Investments in securities traded in foreign currencies or more directly in foreign currencies are subject to the risk that the foreign currency will decline in value relative to the U.S. dollar, which may reduce the value of the portfolio. Investments in currency hedging positions are subject to the risk that the value of the U.S. dollar will decline relative to the currency being hedged, which may result in a loss of money on the investment as well as the position designed to act as a hedge. Cross-currency hedging strategies and active currency positions may increase currency risk because actual currency exposure may be substantially different from that suggested by the portfolio's holdings.
Custody: Foreign custodial and other foreign financial services are generally more expensive than they are in the United States and may have limited regulatory oversight. The investment may have trouble clearing and settling trades in less-developed markets, and the laws of some countries may limit the investment's ability to recover its assets in the event the bank, depository, or agent holding those assets goes into bankruptcy.
Depositary Receipts: Investments in depositary receipts generally reflect the risks of the securities they represent, although they may be subject to increased liquidity risk and higher expenses and may not pass through voting and other shareholder rights. Depositary receipts cannot be directly exchanged for the securities they represent and may trade at either a discount or premium to those securities.
Derivatives: Investments in derivatives may be subject to the risk that the advisor does not correctly predict the movement of the underlying security, interest rate, market index, or other financial asset, or that the value of the derivative does not correlate perfectly with either the overall market or the underlying asset from which the derivative's value is derived. Because derivatives usually involve a small investment relative to the magnitude of liquidity and other risks assumed, the resulting gain or loss from the transaction will be disproportionately magnified. These investments may result in a loss if the counterparty to the transaction does not perform as promised.
Distressed Investments: Investments in distressed or defaulted investments, which may include loans, loan participations, bonds, notes, and issuers undergoing bankruptcy organization, are often not publicly traded and face increased price volatility and liquidity risk. These securities are subject to the risk that the advisor does not correctly estimate their future value, which may result in a loss of part or all of the investment.
Dollar Rolls: Dollar rolls transactions may be subject to the risk that the market value of securities sold to the counterparty declines below the repurchase price, the counterparty defaults on its obligations, or the portfolio
turnover rate increases because of these transactions. In addition, any investments purchased with the proceeds of a security sold in a dollar rolls transaction may lose value.
Early Close/Late Close/Trading Halt: The investment may be unable to rebalance its portfolio or accurately price its holdings if an exchange or market closes early, closes late, or issues trading halts on specific securities or restricts the ability to buy or sell certain securities or financial instruments. Any of these scenarios may cause the investment to incur substantial trading losses.
Emerging Markets: Investments in emerging- and frontiermarkets securities may be subject to greater market, credit, currency, liquidity, legal, political, and other risks compared with assets invested in developed foreign countries.
Equity Securities: The value of equity securities, which include common, preferred, and convertible preferred stocks, will fluctuate based on changes in their issuers' financial conditions, as well as overall market and economic conditions, and can decline in the event of deteriorating issuer, market, or economic conditions.
ETF: Investments in exchange-traded funds ("ETF") generally reflect the risks of owning the underlying securities they are designed to track, although they may be subject to greater liquidity risk and higher costs than owning the underlying securities directly because of their management fees. Shares of ETFs are subject to market trading risk, potentially trading at a premium or discount to net asset value.
ETN: Investments in exchange-traded notes ("ETN") may be subject to the risk that their value is reduced because of poor performance of the underlying index or a downgrade in the issuer's credit rating, potentially resulting in default. The value of these securities may also be impacted by time to maturity, level of supply and demand, and volatility and lack of liquidity in underlying markets, among other factors. The portfolio bears its proportionate share of fees and expenses associated with investment in ETNs, and its decision to sell these holdings may be limited by the availability of a secondary market.
Event-Driven Investment/Arbitrage Securities: Arbitrage strategies involve investment in multiple securities with the expectation that their prices will converge at an expected value. These strategies face the risk that the advisor's price predictions will not perform as expected. Investing in eventdriven or merger arbitrage strategies may not be successful if the merger, restructuring, tender offer, or other major corporate event proposed or pending at the time of investment is not completed on the terms contemplated.
Extension: The issuer of a security may repay principal more slowly than expected because of rising interest rates. In this event, short- and medium-duration securities are effectively converted into longer-duration securities, increasing their sensitivity to interest-rate changes and causing their prices to decline.
Financials Sector: Concentrating assets in the financials sector may disproportionately subject the portfolio to the
risks of that industry, including loss of value because of economic recession, availability of credit, volatile interest rates, government regulation, and other factors.
Fixed Income Securities: The value of fixed-income or debt securities may be susceptible to general movements in the bond market and are subject to interest-rate and credit risk.
Foreign Securities: Investments in foreign securities may be subject to increased volatility as the value of these securities can change more rapidly and extremely than can the value of U.S. securities. Foreign securities are subject to increased issuer risk because foreign issuers may not experience the same degree of regulation as U.S. issuers do and are held to different reporting, accounting, and auditing standards. In addition, foreign securities are subject to increased costs because there are generally higher commission rates on transactions, transfer taxes, higher custodial costs, and the potential for foreign tax charges on dividend and interest payments. Many foreign markets are relatively small, and securities issued in less-developed countries face the risks of nationalization, expropriation or confiscatory taxation, and adverse changes in investment or exchange control regulations, including suspension of the ability to transfer currency from a country. Economic, political, social, or diplomatic developments can also negatively impact performance.
Forwards: Investments in forwards may increase volatility and be subject to additional market, active management, currency, and counterparty risks as well as liquidity risk if the contract cannot be closed when desired. Forwards purchased on a when-issued or delayed-delivery basis may be subject to risk of loss if they decline in value prior to delivery, or if the counterparty defaults on its obligation.
Futures: Investments in futures contracts and options on futures contracts may increase volatility and be subject to additional market, active management, interest, currency, and other risks if the contract cannot be closed when desired.
Growth Investing: Growth securities may be subject to increased volatility as the value of these securities is highly sensitive to market fluctuations and future earnings expectations. These securities typically trade at higher multiples of current earnings than do other securities and may lose value if it appears their earnings expectations may not be met.
Hedging Strategies: The advisor's use of hedging strategies to reduce risk may limit the opportunity for gains compared with unhedged investments, and there is no guarantee that hedges will actually reduce risk.
High Portfolio Turnover: Active trading may create high portfolio turnover, or a turnover of 100% or more, resulting in increased transaction costs. These higher costs may have an adverse impact on performance and generate short-term capital gains, creating potential tax liability even if an investor does not sell any shares during the year.
High Yield Securities: Investments in below-investment-grade
?2023 Morningstar, Inc., Morningstar Investment ProfilesTM 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of information. Past performance is no guarantee of future performance. Visit our investment website at .
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