American Funds Balanced Inv Acct

The TR American Funds Balanced Fund is a Separate Account portfolio maintained by Transamerica Financial Life Insurance Company (TFLIC). The TR American Funds Balanced Fund invests exclusively in the American Balanced Fund (Class R-3), a mutual fund, which had an inception date of July 26, 1975.¹ The mutual fund is team managed by Capital Research and Management Company.

Best suited for investors who seek conservation of capital, current income and long-term growth of capital and income by investing in stocks, bonds and other fixed-income securities. The mutual fund approaches the management of its investments as if they constituted the complete investment program of the prudent investor. The mutual fund offers wide diversification and a balanced approach by investing in blue chip stocks, quality bonds, convertible securities and money market instruments. The mutual fund also invests in securities issued and guaranteed by the U.S. government. Normally, the mutual fund will maintain at least 50%, but not more than 75%, of the value of its assets in common stocks and at least 25% of the value of its assets in debt securities. In addition, the mutual fund may invest up to 10% of its assets in securities domiciled outside the U.S. and not included in the S&P 500 Index. The cash and cash equivalents position will vary and will depend on various factors, including market conditions and purchases and redemptions of mutual fund shares. All of the fixed-income investments must be investment grade at the time of purchase.

Historically, stocks have provided greater long-term returns and have entailed greater short-term market risks than other investment choices. Investment in the mutual fund is subject to risks, including the possibility that the mutual fund’s income and the value of its investments may fluctuate in response to events specifically involving the companies in which the mutual fund invests, as well as economic, political or social events in the U.S. or abroad. The prices of and the income generated by securities owned by the mutual fund may be affected by events specifically involving the companies issuing those securities, by changing interest rates, and by changing credit risk assessments. Investments outside the U.S. may be subject to greater risks.

There are no Investment Management or Administrative Charges applicable to this Separate Account portfolio. However, the assets in this Separate Account portfolio are subject to the total operating expenses (expense ratio) of the underlying mutual fund, which were 0.97% as of November 30, 2005. (Source: Morningstar, Inc.)