TRANSAMERICA FUNDS ANNUAL REPORT

1 TRANSAMERICA FUNDSANNUAL REPORTOCTOBER 31, 2017 TRANSAMERICABALANCED IITRANSAMERICACAPITALGROWTHTRANSAMERICAB ONDTRANSAMERICACONCENTRATEDGROWTHTRANSAM ERICADYNAMICALLOCATIONTRANSAMERICADYNAMI CINCOMETRANSAMERICADIVIDENDFOCUSEDTRANSA MERICAEMERGINGMARKETS DEBTTRANSAMERICAEMERGINGMARKETSEQUITYTRA NSAMERICAEVENT DRIVENTRANSAMERICAFLOATINGRATETRANSAMERI CAGLOBAL EQUITYTRANSAMERICAFLEXIBLEINCOMETRANSAME RICAGOVERNMENTMONEY MARKETTRANSAMERICAGROWTHTRANSAMERICAHIGH QUALITY BONDTRANSAMERICAHIGH YIELDMUNITRANSAMERICAINFLATIONOPPORTUNIT IESTRANSAMERICAHIGH YIELD BONDTRANSAMERICAINFLATION-PROTECTEDSECUR ITIESTRANSAMERICAINTERMEDIATEBONDTRANSAM ERICAINTERMEDIATEMUNITRANSAMERICAINTERNA TIONALSMALL CAP VALUETRANSAMERICALARGE CAP VALUETRANSAMERICAINTERNATIONALEQUITYTRAN SAMERICALARGE CORETRANSAMERICALARGE GROWTHTRANSAMERICALARGE VALUEOPPORTUNITIESTRANSAMERICAMID CAP VALUEOPPORTUNITIESTRANSAMERICAMLP & ENERGYINCOMETRANSAMERICAMID CAP GROWTHTRANSAMERICAMULTI-CAPGROWTHTRANSAM ERICAMULTI-MANAGEDBALANCEDTRANSAMERICASH ORT-TERMBONDTRANSAMERICASMALL CAPGROWTHTRANSAMERICASMALL CAP VALUETRANSAMERICASMALL CAP CORETRANSAMERICASMALL/MID CAPVA L U ETRANSAMERICASTRATEGIC HIGH INCOMETRANSAMERICAUNCONSTRAINEDBONDTRANS AMERICAUS GROWTHC ustomer Service:1-888-233-43391801 California St.

2 , Suite 5200 Denver, CO 80202 Distributor: TRANSAMERICA Capital, of ContentsShareholder Letter1 Manager Commentary and Schedule of InvestmentsTransamerica Balanced II2 TRANSAMERICA Bond17 TRANSAMERICA Capital Growth28 TRANSAMERICA Concentrated Growth32 TRANSAMERICA Dividend Focused36 TRANSAMERICA Dynamic Allocation40 TRANSAMERICA Dynamic Income43 TRANSAMERICA Emerging Markets Debt46 TRANSAMERICA Emerging Markets Equity55 TRANSAMERICA Event Driven61 TRANSAMERICA Flexible Income69 TRANSAMERICA Floating Rate81 TRANSAMERICA Global Equity96 TRANSAMERICA Government Money Market101 TRANSAMERICA Growth104 TRANSAMERICA High Quality Bond108 TRANSAMERICA High Yield Bond114 TRANSAMERICA High Yield Muni125 TRANSAMERICA Inflation Opportunities140 TRANSAMERICA Inflation-Protected Securities147 TRANSAMERICA Intermediate Bond154 TRANSAMERICA Intermediate Muni169 TRANSAMERICA International Equity211 TRANSAMERICA International Small Cap Value216 TRANSAMERICA Large Cap Value221 TRANSAMERICA Large Core225 TRANSAMERICA Large

3 Growth230 TRANSAMERICA Large Value Opportunities236 TRANSAMERICA Mid Cap Growth241 TRANSAMERICA Mid Cap Value Opportunities245 TRANSAMERICA MLP & Energy Income249 TRANSAMERICA Multi-Cap Growth253 TRANSAMERICA Multi-Managed Balanced257 TRANSAMERICA Short-Term Bond274 TRANSAMERICA Small Cap Core285 TRANSAMERICA Small Cap Growth292 TRANSAMERICA Small Cap Value296 TRANSAMERICA Small/Mid Cap Value300 TRANSAMERICA Strategic High Income307 TRANSAMERICA Unconstrained Bond313 TRANSAMERICA US Growth329 Understanding Your FUNDS Expenses333 Statements of Assets and Liabilities339 Statements of Operations357 Statements of Changes in Net Assets375 Statement of Cash Flows411 Financial Highlights412 Notes to Financial Statements504 REPORT of Independent Registered Public Accounting Firm563 Supplemental Information564 Approval of Management and Sub-Advisory Agreements566 Management of the Trust583 Proxy Voting Policies and Procedures and Quarterly Portfolio Holdings591 Notice of Privacy Policy592 TRANSAMERICA FundsAnnual REPORT 2017 Dear Shareholder,On behalf of TRANSAMERICA FUNDS , we would like to thank you for your continued support and confidence in our products as we lookforward to continuing to serve you and your financial adviser in the future.

4 We value the trust you have placed in ANNUAL REPORT is provided to you to show the investments of your fund (s). The Securities and Exchange Commission requires thatannual and semi- ANNUAL reports be sent to all shareholders, and we believe it to be an important part of the investment process. Thisreport provides detailed information about your fund (s) for the 12-month period ending October 31, believe it is important to understand market conditions over the last year to provide a context for reading this REPORT . In earlyNovember of 2016, the surprise election victory of Donald Trump generated a strong reaction in both the equity and fixed incomemarkets. As a result, the final two months of 2016 saw a move upward in stocks, driven by the prospect of less overall governmentregulation and the potential for legislation out of Washington pertaining to tax reform and enhanced levels of fiscal spending. Longerterm interest rates also rose materially during this time in response to anticipation of new economic policies perceived to be moregrowth oriented and inflationary.

5 Between election-day and calendar year end, the 10-year Treasury yield jumped from to this initial spike in long term yields, market interest rates fluctuated with the 10-year Treasury yield ranging from a high of inMarch 2017 to a low of in September 2017. Much of this movement appeared to be in response to the lack of legislativeprogress regarding the new administration s economic agenda. On October 31, 2017, the 10-year Treasury yield closed at markets were a different story, as most major market indices, including the Dow Jones Industrial Average, the S&P 500 and the NASDAQ moved higher during the year. The primary catalyst for the ascent in stocks was corporate earnings, as during thefirst half of 2017 S&P 500 companies posted their strongest levels of earnings growth in five years, as seen by aggregate double digitprofit growth in both the first and second quarters. This helped to propel the equity markets even as the progress in Washingtonregarding new economic policy was significantly slower than anticipated.

6 These strong corporate profit results and lower default ratesalso helped to support credit markets as high yield bond spreads tightened to their lowest levels in three regard to the broader economy, gross domestic product ( GDP ) growth exceeded 3% in the second quarter of 2017 for the first timein two years as steady job gains combined with growth in wages and consumer spending. The Federal Reserve ( Fed ) alsomoved more quickly toward normalizing short term interest rates, raising the Federal FUNDS Rate three times, effectively putting an endto the zero interest rate policy that had been in effect since 2008. In September 2017, the Fed announced a formal schedule to finallybegin reducing its balance sheet of more than $4 trillion in bonds, which will be implemented over several the 12-month period ending October 31, 2017, the S&P 500 returned while the MSCI EAFE Index, representinginternational developed market equities, gained During the same period, the Bloomberg Barclays US Aggregate Bond Indexreturned Please keep in mind that it is important to maintain a diversified portfolio as investment returns have historically beendifficult to addition to your active involvement in the investment process, we firmly believe that a financial adviser is a key resource to help youbuild a complete picture of your current and future financial needs.

7 Financial advisers are familiar with the market s history, includinglong-term returns and volatility of various asset classes. With your adviser, you can develop an investment program that incorporatesfactors such as your goals, your investment timeline and your risk contact your financial adviser if you have any questions about the contents of this REPORT , and thanks again for the confidenceyou have placed in ,Marijn SmitPresident & Chief Executive OfficerTransamerica FundsTom Wald, CFAC hief Investment OfficerTransamerica FundsThe views expressed in this REPORT reflect those of the portfolio managers only and may not necessarily represent the views of theTransamerica FUNDS . These views are subject to change based upon market conditions. These views should not be relied upon asinvestment advice and are not indicative of trading intent on behalf of the TRANSAMERICA Balanced II(unaudited)MARKET ENVIRONMENTA egon USA Investment Management, LLCLast November, we wrote the fiscal year was not completely unlike any other 12 month period in the post-crisis era.

8 The 12 monthssince then have been, perhaps, the most stunningly divergent in the years since the great recession. A synchronized global recovery iswell underway. The Federal Reserve ( Fed ) has been raising interest rates and shrinking its balance sheet. The Trump era hastaken geopolitical volatility to new heights, while equity market volatility reached historical lows. Stocks hit record highs; credit spreadscompressed; and commodity prices found support. One year into the 115th Congress, the promise of massive reforms in taxes, healthcare, and regulation remains just that, assets and spread products had a very good year as spreads tightened markedly, largely driven by a price-supportive supply/demand environment. The investment grade corporate bond market continued to outperform duration-matched Treasuries; allmajor sectors generated strong performance led by commodity-related issuers. At the broader sector level, financials outperformedindustrials and utilities.

9 Within structured products, commercial mortgage-backed securities ( CMBS ) and asset-backed securities( ABS ) were the top performers during the trailing 12 months ended October 31, 2017, and agency residential mortgage-backedsecurities ( RMBS ) Morgan Investment Management, the beginning of the fiscal year, in November of 2016, equity markets rallied as Donald Trump unexpectedly upset HillaryClinton in the Presidential election. The Republican Party s sweep of Congress also boosted investor sentiment. As investorsanticipated a pro-growth agenda proposed by President-elect Trump, equity markets rallied, bond yields rose and the dollarstrengthened. Investor attention turned to the upcoming Federal Reserve ( Fed ) meeting in December 2016, when the Feddecided to raise rates by to a range of to Since the rate action was fully anticipated, the Fed s updated projectionsfor growth, inflation and the future path of interest rate increases were the equity markets started 2017 in a strong uptrend; however, they started drifting lower amid complications around health-care reformand weakness in crude oil prices.

10 The S&P 500 experienced its first 1% decline since October of 2016 on March 21 when it becameapparent that the initial version of the American Health Care Act would not have enough votes to pass the House of recovered in the final week of March, as President Trump immediately shifted his focus to tax equity markets were able to grind their way higher through mid-May. However, volatility soon spiked on headlines that PresidentTrump hinted to former FBI Director James Comey to ease up on the investigation of former National Security Advisor Michael triggered a one-day selloff; the S&P 500 fell , the largest one-day decline since September 2016. equity marketscontinued to advance in the final quarter of the fiscal year as the economy grew above trend despite several severe , the third-quarter earnings season was solid, and Congress made progress toward potential tax reform. Stronger economicdata and the anticipation of tax reform caused interest rates to spike near period the year ended October 31, 2017, TRANSAMERICA Balanced II Class R returned By comparison, its primary and secondarybenchmarks, the S&P 500 and the Bloomberg Barclays US Aggregate Bond Index, returned and , REVIEWA egon USA Investment Management, LLCS pread compression was the largest active contributor to performance, as risk assets rallied steadily during most of the period.