Transamerica IDEX Mutual Funds is eyeing new niche funds of funds as part of a broader strategy to capture 401(k) rollover assets and other types of nest eggs.

Transamerica currently offers five funds of funds--conservative, moderate, moderate growth, growth and multi-manager international--known as the IDEX asset allocation funds. Funds of funds typically strive to create diversified portfolios unto themselves but the firm is now considering a series of niche asset allocation launches, including a commodities portfolio, large-cap, mid-cap and small cap, according to an insider familiar with the company's plans. Cindy Nodorft, a spokeswoman, could not reach officials by press time.

Launching style-specific diversified multi-fund products is the first step toward creating customizable portfolios comprised mainly of funds of funds, the insider said. This allows savvier investors to develop asset allocation models.

Transamerica offers portfolio-building for its funds of funds shareholders on a limited basis in conjunction with Morningstar. The research giant supports the process by screening multiple funds in shareholders' portfolios for overlapping investment holdings, according to a posting on Transamerica's Web site. The Shareholders will have greater flexibility to develop increasingly sophisticated portfolios with upcoming style sector-specific fund of fund launches, the insider said.