Invesco Mid Cap Core Equity Inv Acct

The TR AIM Mid Cap Core Equity Fund is a Separate Account portfolio maintained by Transamerica Financial Life Insurance Company (TFLIC). The TR AIM Mid Cap Core Equity Fund invests exclusively in the AIM Mid Cap Core Equity Fund (Class A shares), a mutual fund, which had an inception date of June 9, 1987. This mutual fund is managed by Ronald S. Sloan, CFA, since 1998.

Best suited for investors who seek long-term growth of capital and who can accept the risks associated with it. The AIM Mid Cap Core Equity mutual fund seeks to meet its objective by investing, normally, at least 80% of its assets in equity securities, including convertible securities, of mid-capitalization companies. The mutual fund may invest up to 20% of its assets in equity securities of companies in other market capitalization ranges. The mutual fund may also invest up to 20% of its assets in investment-grade debt securities, U.S. government securities, and high quality money market instruments. In addition, the mutual fund may invest up to 25% of its total assets in foreign securities.

In selecting investments, the mutual fund portfolio manager seeks to identify those companies that are, in their view, undervalued relative to current or projected earnings, or the current market value of assets owned by the company. The primary emphases of the mutual fund portfolio manager’s search include out-of-favor cyclical growth companies, established growth companies that are undervalued compared to historical relative valuation parameters, companies exhibiting early signs of improving prospects which are not reflected in the value of the companies’ securities and companies whose equity securities are selling at prices that do not yet reflect the current market value of their assets.

Historically, stocks have provided greater long-term returns and have entailed greater short-term market risks than other investment choices. The value of the fund's domestic and foreign investments will vary from day to day in response to many factors. Foreign investing involves special risks including political unrest, economic instability and currency fluctuation. The securities of smaller, less well-known companies may experience greater price volatility than funds that invest in more established, larger capitalization companies.

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 1.30% as of November 30, 2005. (Source: Morningstar, Inc.)