Fund Evaluator:

Transamerica High Yield Muni I2 Overview

Transamerica High Yield Muni I2 (THYTX) is an actively managed Municipal Bond High Yield Muni fund. Transamerica launched the fund in 2016.

The investment seeks to maximize total return through investment in medium- and lower-grade municipal securities that are exempt from federal income tax. Under normal circumstances, the fund’s sub-adviser, Belle Haven Investments, L.P. (the “sub-adviser”), invests at least 80% of the fund’s net assets (plus the amount of borrowings, if any, for investment purposes) in municipal fixed-income securities the interest from which is exempt from federal income tax and the federal alternative minimum tax (“AMT”) applicable to individuals. The fund is non-diversified.

About Transamerica High Yield Muni I2 (THYTX)

There are 2 members of the management team with an average tenure of 2.38 years: Max Christiana (2021), Lincoln James (2026). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P Municipal Bond TR index with a weighting of 100% and Bloomberg HY Muni TR USD index with a weighting of 100%. Transamerica High Yield Muni I2 has 345 securities in its portfolio. The top 10 holdings constitute 11.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Transamerica High Yield Muni I2 is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Transamerica High Yield Muni I2 has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 96.0% (96.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Transamerica High Yield Muni I2 has 4.0% of the portfolio in cash.

Assets Under Management

The fund has $12 million in total assets, which is below the $803 million average for the High Yield Muni category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

THYTX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Transamerica High Yield Muni I2 expense ratio is above average compared to funds in the High Yield Muni category. Transamerica High Yield Muni I2 has an expense ratio of 0.71%, which is 27% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Transamerica High Yield Muni I2 has a portfolio turnover rate of 61%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 51% for the High Yield Muni category.

Recently, in the month of July 2026, Transamerica High Yield Muni I2 returned -1.7%, which earned it a grade of B, as the High Yield Muni category had an average return of -1.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Transamerica High Yield Muni I2 has a trailing yield of 4.50%, which is above the 4.46% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Transamerica High Yield Muni I2 Grades

Year to date, the fund has returned 1.8%, 0.3 percentage points better than the category, which translates into a grade of B. The fund has returned 7.0% over the past year (grade of C), 5.1% over the past three years (grade of A) and 0.2% per year over the past five years (grade of C) and 2.4% per year over the past 10 years (grade of C).

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