Form 497K VALIC Co I
September 28, 2021 3:08 PM EDTSummary Prospectus
October 1, 2021
VALIC Company I
Dividend Value Fund
(Ticker: VCIGX)
The
Fund’s Statutory Prospectus and Statement of Additional Information, each dated October 1, 2021, as amended and
supplemented from time to time, and the most recent shareholder reports are incorporated into and made part of this Summary Prospectus
by reference. The Fund is offered only to registered and unregistered separate accounts of The Variable Annuity Life Insurance Company and its affiliates and to qualifying retirement plans and IRAs and is not intended for use by other
investors.
Before you invest, you may want to review
the Fund’s Statutory Prospectus, which contains more information about the Fund and its risks. You can find the Statutory Prospectus and the above-incorporated information online at
http://valic.onlineprospectus.net/VALIC/FundDocuments/index.html. You can also get this information at no cost by calling 800-448-2542 or by sending an e-mail request to [email protected].
The Securities and Exchange Commission has not approved or
disapproved these securities, nor has it determined that this Summary Prospectus is accurate or complete. It is a criminal offense to state otherwise.
Investment Objective
The Fund seeks capital growth by investing in common stocks.
Income is a secondary objective.
Fees and Expenses of the
Fund
This table describes the fees and expenses that you may pay
if you buy, hold and sell shares of the Fund. The table and the example below do not reflect the separate account fees charged in the variable annuity or variable life insurance policy (“Variable
Contracts”) in which the Fund is offered. If separate account fees were shown, the Fund’s annual operating expenses would be higher. Please see your Variable Contract prospectus for more details on the separate account fees.
Annual Fund
Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management
Fees |
0.70% |
Other
Expenses |
0.10% |
Total Annual Fund Operating
Expenses |
0.80% |
Fee Waivers and/or Expense
Reimbursements1 |
0.11% |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements1 |
0.69% |
1 | The Fund’s investment adviser, The Variable Annuity Life Insurance Company (“VALIC”), has contractually agreed to waive its advisory fee until September 30, 2022, so that the advisory fee payable by the Fund to VALIC equals 0.64% on the first $250 million of the Fund’s average daily net assets, 0.61% on the next $250 million of the Fund’s average daily net assets, 0.56% on the next $500 million of the Fund’s average daily net assets and 0.51% on average daily net assets over $1 billion. This agreement may be modified or discontinued prior to such time only with the approval of the Board of |
Directors of VALIC Company I (“VC I”), including a majority of the directors who are not “interested persons” of VC I as defined in the Investment Company Act of 1940, as amended. |
Expense
Example
This Example is intended to help you
compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem or hold all of your shares at the end of those
periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses include fee waivers for one year. The Example does not reflect charges imposed by the Variable Contract. If the Variable
Contract fees were reflected, the expenses would be higher. See the Variable Contract prospectus for information on such charges. Although your actual costs may be higher or lower, based on these assumptions and the net expenses shown in the fee
table, your costs would be:
1 Year | 3 Years | 5 Years | 10 Years | |||
$70 | $244 | $433 | $980 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s
portfolio turnover rate was 64% of the average value of its portfolio.
- 1 -
VALIC Company I
Dividend Value Fund
Principal Investment Strategies of the Fund
The Fund seeks to achieve its objective by investing
primarily in a diversified portfolio of equity securities including common stock, preferred stock and convertible securities. Under normal circumstances, the Fund will invest at least 80% of its net assets in dividend paying equity securities. The
Fund may invest in securities of companies with any market capitalization, but will generally focus on large cap securities. The Fund may invest up to 25% of its net assets in equity securities of foreign issuers, either directly or through
depositary receipts. The foreign issuers in which the Fund may invest include issuers that are organized outside the United States and conduct their operations in the United States and other countries and other foreign issuers with market
capitalizations generally of at least $10 billion.
In
selecting portfolio securities, one of the Subadvisers will generally employ a value-oriented analysis, but may purchase equity securities based on a growth-oriented analysis when such securities pay dividends or the Subadviser believes such
securities have particularly good prospects for capital appreciation. The other Subadviser typically emphasizes dividend paying equity securities with a focus placed upon current dividend levels as well as dividend growth over time and looks for
potential for capital appreciation, sound or improving balance sheets and effective management teams that exhibit a desire to earn consistent returns for shareholders.
The Fund may also invest in non convertible preferred
stock, securities of other investment companies and of real estate investment trusts (“REITs”), warrants and rights.
In order to generate additional income, the Fund may lend
portfolio securities to broker-dealers and other financial institutions provided that the value of the loaned securities does not exceed 30% of the Fund’s total assets. These loans earn income for the Fund and are collateralized by cash and
securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities. Investors will be given at least 60 days’ written notice in advance of any change to the Fund’s 80% investment policy set forth above.
Principal Risks of Investing in the Fund
As with any mutual fund, there can be no assurance that the
Fund’s investment objective will be met or that the net return on an investment in the Fund will exceed what could have been obtained through other investment or savings vehicles. Shares of the Fund are not bank deposits and are not guaranteed
or insured by any bank, government
entity or the Federal Deposit Insurance Corporation. If the value of the
assets of the Fund goes down, you could lose money.
The
following is a summary of the principal risks of investing in the Fund.
Management Risk. The
investment style or strategy used by the Subadviser may fail to produce the intended result. The Subadviser’s assessment of a particular security or company may prove incorrect, resulting in losses or underperformance.
Dividend-paying Stocks
Risk. The Fund’s emphasis on dividend-paying stocks could cause the Fund to underperform similar funds that invest without consideration of a company’s track record of paying dividends. There is no
guarantee that the issuers of the stocks held by the Fund will declare dividends in the future or that, if dividends are declared, they will remain at their current levels or increase over time. Dividend-paying stocks may not participate in a broad
market advance to the same degree as other stocks, and a sharp rise in interest rates or economic downturn could cause a company to unexpectedly reduce or eliminate its dividend.
Equity Securities Risk. The
Fund invests principally in equity securities and is therefore subject to the risk that stock prices will fall and may underperform other asset classes. Individual stock prices fluctuate from day-to-day and may decline significantly. The prices of
individual stocks may be negatively affected by poor company results or other factors affecting individual prices, as well as industry and/or economic trends and developments affecting industries or the securities market as a whole.
Value Style Risk.
Generally, “value” stocks are stocks of companies that a subadviser believes are currently undervalued in the marketplace. A subadviser’s judgment that a particular security is undervalued in relation to the company’s
fundamental economic value may prove incorrect and the price of the company’s stock may fall or may not approach the value the subadviser has placed on it.
Growth Style Risk.
Generally, “growth” stocks are stocks of companies that a subadviser believes have anticipated earnings ranging from steady to accelerated growth. Many investors buy growth stocks because of anticipated superior earnings growth, but
earnings disappointments often result in sharp price declines. Growth companies usually invest a high portion of earnings in their own businesses so their stocks may lack the dividends that can cushion share prices in a down market. In addition, the
value of growth stocks may be more sensitive to changes
VALIC Company I
- 2 -
Dividend Value
Fund
in current or expected earnings than the value of other
stocks, because growth stocks trade at higher prices relative to current earnings.
Convertible Securities
Risk. Convertible security values may be affected by market interest rates, issuer defaults and underlying common stock values; security values may fall if market interest rates rise and rise if market interest
rates fall. Additionally, an issuer may have the right to buy back the securities at a time unfavorable to the Fund.
Preferred Stock Risk.
Unlike common stock, preferred stock generally pays a fixed dividend from a company’s earnings and may have a preference over common stock on the distribution of a company’s assets in the event of bankruptcy or liquidation. Preferred
stockholders’ liquidation rights are subordinate to the company’s debt holders and creditors. If interest rates rise, the fixed dividend on preferred stocks may be less attractive and the price of preferred stocks may decline. Preferred
stockholders typically do not have voting rights.
Income Producing Stock Availability Risk. Income producing common stock meeting the Fund’s investment criteria may not be widely available and/or may be highly concentrated in only a few market sectors, thus limiting the ability of the Fund to produce
current income while remaining fully diversified.
Large-Cap Companies Risk.
Investing primarily in large-cap companies carries the risk that due to current market conditions these companies may be out of favor with investors. Large-cap companies may be unable to respond quickly to new competitive challenges or attain the
high growth rate of successful smaller companies.
Market Risk. The
Fund’s share price can fall because of weakness in the broad market, a particular industry, or specific holdings or due to adverse political or economic developments here or abroad, changes in investor psychology, or heavy institutional
selling and other conditions or events (including, for example, military confrontations, war, terrorism, disease/virus, outbreaks and epidemics). The prices of individual securities may fluctuate, sometimes dramatically, from day to day. The prices
of stocks and other equity securities tend to be more volatile than those of fixed-income securities.
The coronavirus pandemic and the related governmental and
public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities
and sectors of the market. Preventative or protective actions that governments may
take in respect of pandemic or epidemic diseases may result in periods of
business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. Government intervention in markets may impact interest rates,
market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in
specific countries or worldwide.
Mid-Cap Company Risk. Investing in mid-cap companies carries the risk that due to current market conditions these companies may be out of favor with investors. Stocks of mid-cap companies may be more volatile than those of larger companies
due to, among other reasons, narrower product lines, more limited financial resources and fewer experienced managers.
Small-Cap Company Risk.
Investing in small-cap companies carries the risk that due to current market conditions these companies may be out of favor with investors. Small companies often are in the early stages of development with limited
product lines, markets, or financial resources and managements lacking depth and experience, which may cause their stock prices to be more volatile than those of larger companies. Small company stocks may be less liquid yet subject to abrupt or
erratic price movements. It may take a substantial period of time before the Fund realizes a gain on an investment in a small-cap company, if it realizes any gain at all.
Foreign Investment Risk.
Investment in foreign securities involves risks due to several factors, such as illiquidity, the lack of public information, changes in the exchange rates between foreign currencies and the U.S. dollar, unfavorable political, social and legal
developments, or economic and financial instability. Foreign companies are not subject to the U.S. accounting and financial reporting standards and may have riskier settlement procedures. U.S. investments that are denominated in foreign currencies
or that are traded in foreign markets, or securities of U.S. companies that have significant foreign operations may be subject to foreign investment risk.
Depositary Receipts Risk.
Depositary receipts are generally subject to the same risks as the foreign securities that they evidence or into which they may be converted. Depositary receipts may or may not be jointly sponsored by the underlying issuer. The issuers of
unsponsored depositary receipts are not obligated to disclose information that is considered material in the
VALIC Company I
- 3 -
Dividend Value
Fund
United States. Therefore, there may be less information
available regarding the issuers and there may not be a correlation between such information and the market value of the depositary receipts. Certain depositary receipts are not listed on an exchange and therefore may be considered to be illiquid
securities.
Warrants and Rights Risk. Warrants and rights can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of warrants and rights do not necessarily move in tandem with the prices of the
underlying securities and therefore are highly volatile and speculative investments. They have no voting rights, pay no dividends and have no rights with respect to the assets of the issuer other than a purchase option. If a warrant or right held by
the Fund is not exercised by the date of its expiration, the Fund would lose the entire purchase price of the warrant or right.
REITs Risk. The performance
of a REIT depends on current economic conditions and the types of real property in which it invests and how well the property is managed. If a REIT concentrates its investments in a geographic region or property type, changes in underlying real
estate values may have an exaggerated effect on the value of the REIT.
Securities Lending Risk.
Engaging in securities lending could increase the market and credit risk for Fund investments. The Fund may lose money if it does not recover borrowed securities, the value of the collateral falls, or the value of investments made with cash
collateral declines. The Fund’s loans will be collateralized by securities issued or guaranteed by the U.S. Government or its agencies and instrumentalities, which subjects the Fund to the credit risk of the U.S. Government or the issuing
federal agency or instrumentality. If the value of either the cash collateral or the Fund’s investments of the cash collateral falls below the amount owed to a borrower, the Fund also may incur losses that exceed the amount it earned on
lending the security. Securities lending also involves the risks of delay in receiving additional collateral or possible loss of rights in the collateral if the borrower fails. Another risk of securities lending is the risk that the loaned portfolio
securities may not be available to the Fund on a timely basis and the Fund may therefore lose the opportunity to sell the securities at a desirable price.
Performance Information
The following Risk/Return Bar Chart and Table illustrate
the risks of investing in the Fund by showing changes in the Fund’s performance from calendar year to calendar year and comparing the Fund’s average annual returns to those of the Russell 1000® Value Index. Fees and expenses incurred at the contract level are not reflected in the bar chart or table. If these amounts were reflected, returns
would be less than those shown. Of course, past performance of the Fund is not necessarily an indication of how the Fund will perform in the future.
Prior to July 7, 2021, the Fund was subadvised by BlackRock
Investment Management, LLC (“BlackRock”) and SunAmerica Asset Management, LLC (“SunAmerica”). Effective July 7, 2021, ClearBridge Investments, LLC (“ClearBridge”) replaced SunAmerica as a subadviser to the
Fund.
The percentage of the Fund’s assets that
each subadviser manages may, at the adviser’s discretion, change from time to time.
During the period shown
in the bar chart:
Highest
Quarterly Return: |
December 31, 2020 | 15.14% |
Lowest
Quarterly Return: |
March 31, 2020 | -25.14% |
Year
to Date Most Recent Quarter: |
June 30, 2021 | 15.42% |
VALIC Company I
- 4 -
Dividend Value
Fund
Average Annual Total Returns
(For the periods ended December 31, 2020)
1
Year |
5
Years |
10
Years | |||
Fund |
0.53% | 9.26% | 10.34% | ||
Russell 1000® Value Index (reflects no deduction for fees, expenses or
taxes) |
2.80% | 9.74% | 10.50% |
Investment Adviser
The Fund’s investment adviser is VALIC.
The Fund is subadvised by BlackRock and ClearBridge.
Portfolio
Managers
Name and Title | Portfolio
Manager of the Fund Since | |
BlackRock | ||
Tony DeSpirito Managing Director and Portfolio
Manager |
2014 | |
David Zhao Managing Director and Portfolio
Manager |
2017 | |
ClearBridge | ||
John Baldi Managing Director and Portfolio
Manager |
2021 | |
Michael Clarfeld, CFA Managing Director and Portfolio
Manager |
2021 | |
Peter Vanderlee, CFA Managing Director and Portfolio
Manager |
2021 |
Purchases and Sales of Fund
Shares
Shares of the Funds may only be purchased or redeemed
through Variable Contracts offered by the separate
accounts of VALIC or other participating life insurance companies and
through qualifying retirement plans (“Plans”) and IRAs. Shares of each Fund may be purchased and redeemed each day the New York Stock Exchange is open, at the Fund’s net asset value determined after receipt of a request in good
order.
The Funds do not have any initial or
subsequent investment minimums. However, your insurance company may impose investment or account value minimums. The prospectus (or other offering document) for your Variable Contract contains additional information about purchases and redemptions
of the Funds’ shares.
Tax Information
A Fund will not be subject to U.S. federal income tax so
long as it qualifies as a regulated investment company and distributes its income and gains each year to its shareholders. However, contractholders may be subject to federal income tax (and a federal Medicare tax of 3.8% that applies to net income,
including taxable annuity payments, if applicable) upon withdrawal from a Variable Contract. Contractholders should consult the prospectus (or other offering document) for the Variable Contract for additional information regarding taxation.
Payments to Broker-Dealers and
Other Financial Intermediaries
Other Financial Intermediaries
The Funds are not sold directly to the general public but
instead are offered to registered and unregistered separate accounts of VALIC and its affiliates and to Plans and IRAs. The Funds and their related companies may make payments to the sponsoring insurance company or its affiliates for recordkeeping
and distribution. These payments may create a conflict of interest as they may be a factor that the insurance company considers in including the Funds as underlying investment options in a variable contract. Visit your sponsoring insurance
company’s website for more information.
VALIC Company I
- 5 -
[THIS PAGE INTENTIONALLY LEFT BLANK]
- 6 -
[THIS PAGE INTENTIONALLY LEFT BLANK]
- 7 -
- 8 -
- Wall Street closes higher as investors digest earnings, megacap outlook
- Tesla touts acceleration of new models, but Q1 results fall short of estimates
- JPMorgan is worried about further S&P 500 sell-off potential
- Oil rises as dollar slips, focus shifts to economic data
- China acquired top-end Nvidia AI chips despite recent US ban- Reuters
- Fisker (FSR) Appoints Michael Healy as Chief Restructuring Officer
- Seagate Technology (STX) Enters $600M Asset Purchase Agreement with Avago
- China acquired top-end Nvidia AI chips despite recent US ban- Reuters
- Wolfe Research Downgrades Warner Brothers Discovery (WBD) to Underperform, 'out of concern that an incipient advertising downturn put guidance at risk'
- Forward Air (FWRD) Appoints Shawn Stewart as CEO
- After-hours movers: Tesla, Texas Instruments, Seagate, Visa and more
- Midday movers: PepsiCo, JetBlue fall; GM, Danaher and UPS rise
- After-hours movers: Cadence Design Systems, Cleveland-Cliffs, Riot Platforms, and more
- Midday movers: Tesla, Li Auto and CNH Industrial fall; Salesforce rises
- Midday movers: Netflix, Super Micro fall; Paramount Global gains
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- AIG (AIG) Announces Retirement of David McElroy
- me88 Launches 'me88 Sports' for Eurocup and Premier League Sports Betting Malaysia
- Trulioo 24/7 Support Empowers Top APAC Region Companies to Expand Into New Markets, Achieve Compliance and Accelerate Customer Onboarding
Create E-mail Alert Related Categories
SEC FilingsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!