Transamerica MLP & Energy Income Fund (TMLAX): Ad

Find Transamerica MLP & Energy Income Fund review. This mutual fund invests in energy master limited partnerships (MLPs). TMLAX fund is a new equity energy mutual fund.

Mutual Fund Review

Transamerica recently placed an ad in Barron’s financial magazine. The advertisement is titled as “The Next Revolution: American Energy Independence.” This investment ad provides one new equity energy sector mutual fund. It invests in various energy companies especially master limited partnerships.

Should you invest in these mutual funds? Whether they are for your brokerage account, retirement account (IRA), or 401k plan, you need to find the funds details.

The investment ad is as follow:

The Next Revolution: American Energy Independence 

Transamerica MLP & Energy Income 

Class A: TMLAX Class C: TMCLX Class I: TMLPX 

Learn more about investing in the energy revolution. 

transamericainvestments.com/mlp 

Transamerica – Transform Tomorrow 

Mutual funds are subject to market risk, including the loss of principal. 

Before investing, clients should consider the fund’s investment objectives, risks, charges and expenses. Contact Transamerica for a prospectus and/or summary prospectus containing this information. Clients should read it carefully. Funds distributed by Transamerica Capital, Inc.

Equity Energy Mutual Fund

Transamerica MLP & Energy Income fund utilizes its assets to purchase equity and debt securities of energy master limited partnerships (MLPs), energy infrastructure companies and other issuers in the energy sector. It has total net assets of $263 million. This fund is recently introduced to investors in April 30, 2013. The current net expense ratio fee is 1.53% (class A). The class A fund has a sales load of 5.50%, while the institutional class doesn’t have a sales load.

More: iPath S&P MLP ETN (IMLP) Fund

John C. Frey is the fund manager. You can invest with as little as $1,000 for your regular investment account or individual retirement accounts (IRA). Currently there are 23 brokerages offer this sector equity mutual fund. Some of the brokerages are: Scottrade Load, JPMorgan, TD Ameritrade Institutional NTF, RBC Wealth Management-Wrap Eligible, etc.

Since its inception, this equity energy mutual fund has returned 7.71%. The top 5 stocks in its holdings are Kinder Morgan Management LLC, Kinder Morgan Inc, ONEOK Inc, Williams Companies Inc, and Enbridge Energy Management LLC. The top 3 sectors are Energy (82%), Industrials, and Utilities.

Opinion

• The class A has a steep sales load of 5.50%. Choose institutional class if possible.
• Since this mutual fund is relatively new, there is still no past performance to refer to.
• As a sector mutual fund, it is more volatile than other diversified U.S. stock mutual funds.