1st Quarter Producer Web Conference

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1st QuarterProducer Web Conference
Presented By David Hiss, Regional Vice
President Peter Sullivan, Regional Vice President
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Overview

• Investment Fund Changes
• SP Endorsement Letter
• Advisor Series Open Architecture
• Transamerica Partner Series III

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TRS Investment Process

• Offer Capability for Broad Diversification
• Well-Known Managers
• Keeps TRS Up With Changes in Market
• On-going Monitoring
• Fund Changes When Needed
• Diversity of Style within Categories

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TRS Investment Process

• Sub-Advised Funds (TIM, Templeton, Etc.)
• Diversified and Manager of Managers Process
• Outside Funds

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TRS Investment Process

• Fund Performance/Risk Characteristics
• 3 Year Track Record Required, 5 Year Preferred
• Peer Group Rankings Top 2 Quartiles 3 and 5
  Year
• Comparisons versus appropriate benchmarks
• Sharpe Ratio Comparisons
• Downside Risk
• Fund Recognition and Relationships
• Major broker-sold funds
• Household retail funds

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TRS Investment Process

• Fund Addition Reasons
• Competitive Trends
• Alliance Relationships
• Sub-Advised Opportunities
• Need for Replacement Funds
• Fund Removal Reasons
• Poor Performance
• Expense Ratio Increases
• Manager Turnover
• Investment Objective Changes

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Director Series II/Partner Series III Fund
Additions
1 Contract form number TGP-439-194 or CNT-TALIAC
is a group annuity contract issued by
Transamerica Life Insurance and Annuity Company,
Charlotte, NC, and offered through Transamerica
Retirement Services. Form number may vary, and
this product may not be available in all
jurisdictions. Not available in New York. 2.
Group Annuity Contract Form TA-AP-2001-CONT is
underwritten by Transamerica Financial Life
Insurance Company (TFLIC), Purchase, NY in the
state of New York and administered by
Transamerica Retirement Services. Only available
in New York.
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Director Series II/Partner Series III Fund Name
Changes
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Director Series II/Partner Series III Funds
Removed
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Director Series II/Partner Series III Investment
Line Up

• 5 Strategic Allocation Funds (SAFs)
• 24 Transamerica Selected/TR Transamerica
  Selected
• 41 TI Selected/TR Selected
• 2 Cash Management Fund/Stable Value Fund
• 72 Total Investment Options
• 18 Fund Families

Transamerica Investment Management is not a fund
company
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Advisor Series II Select I Fund Additions

• Small Company Equity
• Diversified Small-Cap Growth Fund
• Diversified Small-Cap Value Fund
• Diversified Special Equity Fund
• High Yield Bond
• Diversified High Yield Bond Fund
• Bond
• Diversified High Quality Bond Fund
• Diversified Intermediate Government Bond Fund

The Transamerica Advisor Series II plan
administration services are provided by
Diversified Investment Advisors and funds are
distributed by Diversified Investors Securities
Corporation.
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Advisor Series II Select II Fund Additions

• Large/Mid Growth Equity
• American Funds AMCAP Fund
• American Funds Growth Fund of America
• Franklin Flex Cap Growth Fund
• Global Equity
• American Funds New Perspective Fund
• Franklin Small-Mid Cap Growth Fund
• Large/Mid Blend Equity
• Oppenheimer Main Street Fund
• Large/Mid Value Equity
• American Funds Fundamental Investors Fund
• American Funds Washington Mutual Investors Fund
• Columbia Mid Cap Value Fund
• Mutual Shares Fund
• American Funds Balanced Fund

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Advisor Series Fund Changes

• INVESCO New Share Class
• INVESCO Financial Services Fund, A Shares
• INVESCO Leisure Fund, A Shares
• INVESCO Technology Fund, A Shares
• INVESCO Dynamics Fund, A Shares
• INVESCO Core Equity Fund, A Shares
• Asset Category Change
• Fidelity Advisor Value Strategies Fund
• Small Company Equity to Large/Mid Value Equity
• Name Changes (Effective 10-13-03)
• Liberty Utilities Fund, to Columbia Utilities
  Fund
• Liberty Growth Income Fund, to Columbia Growth
  Income Fund
• Liberty Intermediate Bond Fund, to Columbia
  Intermediate Bond Fund
• Liberty Strategic Income Fund, to Columbia
  Strategic Income Fund

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Advisor Series II Funds Removed
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Advisor Series II Investment Options

• 19 Select I Funds
• 5 SAFs
• 45 Select II Funds
• 2 Money Market/Stable Value Fund Options
• 71 total Fund Alternatives

The Transamerica Stable Value Fund is available
through Contract Form No. TGP-439-194 or CNT
TALIAC, a group annuity contract issued by
Transamerica Life Insurance and Annuity Company,
Charlotte, NC, and offered through Transamerica
Retirement Services. Contract form number may
vary, and this product may not be available in
all jurisdictions. Not available in New York.
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SP Independent Objectivity
equities
The leading provider of independent and objective
information, insight, and analysis to customers
throughout the world.
fixed income
funds
indices
economics/industry
ratings
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S P Endorsement letter Criteria

• Objective This evaluation is to determine if
  each Transamerica product offers a solid and
  diverse investment opportunity to its
  shareholders as determined by SPs criteria.
• This is to be ascertained in three steps
• Determine if the funds offered in each
  Transamerica products pass SPs fund-level
  screen.
• Establish if each product is diversified in its
  fund offerings.
• Where multiple funds are offered within a style,
  ascertain whether they are complementary in their
  investment process and management.

Transamerica refers to Transamerica Retirement
Services
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• Advisor Series Product

• Advisor Series Enhancements for 2004
• Key Changes to the Advisor Product
• Underwriting Minimums
• Fund / Fund Family Additions
• Open Architecture for Fund Selection
• Producer Compensation for Stable Value and Money
  Market

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• Advisor Series Product

• Advisor Series Underwriting Minimums
• 3 Million in Total First Year Deposits if no
  SDBA/ER Stock
• 5 Million in existing plan assets if SDBA is
  used
• 5 Million in existing plan assets if ER Stock
  is used
• SDBA or ER Stock assets will not count toward
  meeting requirements

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• Advisor Series Product

Fund / Fund Family Additions Funds 71 Total
Fund Offerings Available Fund Family
Added American Funds
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• Advisor Series Product

Advisor Series Open Architecture Responding to
the Needs of our Producers TRS will now offer
greater freedom to choose the fund portfolio that
meets the needs of your clients by offering the
ability to select the investments desired without
a proprietary requirement.
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• Advisor Series Product

• Advisor Series Open Architecture
• Maximum Funds Per Plan Allowed 17
• Choice of Stable Value Fund or Diversified Money
  Market Fund
• 0, 3, or 5 of the SAFs may be chosen
• No restrictions on Select I or Select II funds
• All Select II funds chosen are assessed 0.20
  VAC
• No VAC for SDBA/ER Stock
• SDBA/ER Stock count toward Maximum Fund Limit

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• Advisor Series Product

• Advisor Series Product (50/50)
• Product is still the same as before
• Choice of Stable Value Fund or Diversified Money
  Market Fund
• As many Select II Funds as Select I Funds
  chosen (Not including Cash/SAFs)
• 0, 3, or 5 SAFs may be chosen
• SDBA/ER Stock count as Select II Fund choices
• Fund Maximum Summary No SAFs 3 SAFs 5 SAFs
• Cash Equivalents 1 1 1
• Strategic Allocation Funds (SAFs) 0 3 5
• Max Select I Funds 8 7 6
• Max Select II Funds 8 7 6
• Max Funds Per plan 17 18 18
• Under Pyramid Alliance Select (50/50), there is
  no VAC applied to funds

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• Advisor Series Product

Advisor Series Product Producer
Compensation Assets in the Stable Value Fund or
Money Market Funds will be paid .15 on assets in
the first year and ongoing.
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• Partner Series Changes

• Partner Series Enhancements
• Key Changes for the Partner Series
• Product Availability
• Commission Option Changes
• Fee Structure Changes

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• Partner Series Changes

Partner Series Enhancements Product
Availability We can now support Investment Only
Defined Benefit Plans
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• Partner Series Changes

Partner Series Enhancements Commission Option
Changes Commission Options 7, 8 and 9 are no
longer available under the Partner Series
Product
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• Partner Series Changes

Partner Series Enhancements Fee Structure
Changes Annual Recordkeeping Fees 1-24
Participants 500 per Plan 25-49
Participants 20 per participant 50-249
Participants 15 per participant 250-499
Participants 13 per participant 500
Participants 11 per participant De-Conversion
Fees 300 per Plan
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• Partner Series Changes

Partner Series Enhancements Fee Structure
Changes Reduction in Contract Asset Charges
(CAC) Range of Reductions are 5-20 Basis
points from last year based upon asset size.
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• Partner Series Changes

Partner Series Enhancements Couple Closing
Comments on the Partner Series Product Sales
increased to almost 200 Million in this product
line in 2003 and we expect that this product will
produce 400 Million in 2004.
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Q A