AEGON Bond Ret Acct

The TR Transamerica Bond Fund is a Separate Account portfolio maintained by Transamerica Financial Life Insurance Company (TFLIC). The TR Transamerica Bond Fund invests exclusively in the Transamerica Bond Fund, a Transamerica Life Insurance Company^ (TLIC) Separate Account, which had an inception date of May 1, 1983 and is managed by Transamerica Investment Management, LLC.-Heidi Y. Hu, CFA, Lead Portfolio Manager, joined Transamerica in 1998; Peter O. Lopez, Portfolio Manager, joined Transamerica in 2003; and Greg Haendel, Portfolio Manager, joined Transamerica in 2005.

Best suited for investors who wish to invest in a diversified portfolio of bonds and who have the ability to accept above-average bond price volatility in pursuit of a high total return. The Transamerica Bond Fund (TBF) invests primarily in a diversified selection of longer term, investment grade corporate and government bonds and mortgage-backed securities. Normally, at least 65% of the TBF’s assets are invested in investment grade bonds. Investment grade bonds are rated Baa or higher by Moody’s Investors Service and BBB or higher by Standard & Poor’s Corporation. In addition, the TBF may invest in lower-rated securities (currently not expected to exceed 20% of this Separate Account's assets). For the investment grade bond holdings, maturities are primarily between 5 and 30 years. In selecting investments, the TBF portfolio manager seeks to identify bonds whose potential to outperform other similar bonds, by virtue of underlying credit strength and market mispricing, is not fully reflected in the current bond market valuations.

Longer-term bonds generally tend to produce higher income than shorter maturity bonds. However, the prices of longer-term bonds will fluctuate more sharply when interest rates go up or down. The TBF is intended as a long-term investment, where, over longer time periods, price fluctuations will have less of an effect on the TBF’s total return.

There are no Investment Management or Administrative Charges applicable to the TR Transamerica Bond Fund Separate Account portfolio. However, the assets in this Separate Account portfolio are subject to the total operating expenses of the underlying Transamerica Bond Fund, which consist of the Investment Management and Investment Account Class VIII Administrative Charges which total 0.97% as of November 30, 2005.