Form 497K VALIC Co I
September 28, 2021 3:09 PM EDTSummary Prospectus
October 1, 2021
VALIC Company I
Emerging Economies Fund
(Ticker: VCGEX)
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 appreciation.
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 |
0.75% |
Other
Expenses |
0.13% |
Total Annual Fund Operating
Expenses |
0.88% |
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 remain the same. 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 | |||
$90 | $281 | $488 | $1,084 |
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 82% of the average value of its portfolio.
Principal Investment Strategies of the Fund
Under normal circumstances, the Fund invests at least 80%
of value of its net assets in equity securities of emerging market companies and other investments that are tied economically to emerging markets. Emerging markets include most countries in the world except Australia, Canada, Japan, New Zealand, the
United Kingdom, the United States, and most of the countries of Western Europe. An emerging market company is one that is organized under the laws of, or has a principal place of business in an emerging market; where the principal securities market
is in an emerging market; that derives at least 50% of its total revenues or profits from goods that are produced or sold, investments made, or services performed in an emerging market; or at least 50% of the assets of which are located in an
emerging market. The Fund is not required to allocate its investments in any set percentages to any particular countries. The Fund is not constrained by company size or style limits and will invest across sectors. The Fund will invest in securities
issued by
- 1 -
VALIC Company I
Emerging Economies Fund
companies of any size, although the Fund may invest a
significant portion of its assets in companies of a particular market capitalization size at the discretion of the Subadviser.
The Fund may overweight or underweight countries relative
to its benchmark, the MSCI Emerging Markets Index. The Fund emphasizes securities that are ranked as undervalued, while underweighting or avoiding securities that appear overvalued. The Fund, from time to time, may invest a significant portion of
its assets in one or more countries or regions.
The
Fund may invest in securities denominated in U.S. dollars, other major reserve currencies, such as the euro, yen and pound sterling, and currencies of other countries in which it can invest. The Fund typically maintains full currency exposure to
those markets in which it invests. However, the Fund may from time to time hedge a portion of its foreign currency exposure into the U.S. dollar. The Fund’s equity securities generally consist of common and preferred stock. The Fund may also
invest in depositary receipts.
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.
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.
Emerging Markets Risk. In
addition to the risks associated with investments in foreign securities, emerging market securities are subject to additional risks, which cause these securities generally to be more volatile than securities of issuers located in developed
countries.
Currency Risk. Because the Fund’s foreign investments are generally held in foreign currencies, the Fund could experience gains or losses based solely on changes in the exchange rate between foreign currencies and the U.S.
dollar. Such gains or losses may be substantial.
Geographic Risk. If the
Fund invests a significant portion of its assets in issuers located in a single country, a limited number of countries, or a particular geographic region, it assumes the risk that economic, political and social conditions in those countries or that
region may have a significant impact on its investment performance.
Equity Securities Risk. The
Fund invests principally in equity securities and is the 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.
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.
VALIC Company I
- 2 -
Emerging
Economies Fund
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 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.
Large-Cap Companies Risk.
Large-cap companies tend to go in and out of favor based on market and economic conditions and tend to be less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the Fund’s value may not
rise as much as the value of funds that emphasize smaller capitalization companies. Larger, more established companies may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes. Larger
companies also may not be able to attain the high growth rate of successful smaller companies, particularly during extended periods of economic expansion.
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.
Derivatives Risk. The
prices of derivatives may move in unexpected ways due to the use of leverage and other factors and may result in increased volatility or losses. The Fund may not be able to terminate or sell derivative
positions, and a liquid secondary market may not always exist for derivative
positions.
Hedging Risk. A hedge is an investment made in order to reduce the risk of adverse price movements in a currency or other investment by taking an offsetting position (often through a derivative instrument, such as an option or
forward contract). While hedging strategies can be very useful and inexpensive ways of reducing risk, they are sometimes ineffective due to unexpected changes in the market. Hedging also involves the risk that changes in the value of the related
security will not match those of the instruments being hedged as expected, in which case any losses on the instruments being hedged may not be reduced.
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.
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
VALIC Company I
- 3 -
Emerging
Economies Fund
incorrect and the price of the company’s stock may
fall or may not approach the value the subadviser has placed on it.
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 MSCI Emerging Markets Index (net). 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.
Effective October 1, 2011,
J.P. Morgan Investment Management Inc. (“JPMIM”) assumed sub-advisory
responsibilities for the Fund. From September 11, 2009 through September
30, 2011, BlackRock Financial Management, Inc. sub-advised the Fund.
During the period shown
in the bar chart:
Highest
Quarterly Return: |
December 31, 2020 | 18.34% |
Lowest
Quarterly Return: |
March 31, 2020 | -24.25% |
Year
to Date Most Recent Quarter: |
June 30, 2021 | 10.35% |
Average Annual Total Returns (For the periods ended December 31, 2020)
1
Year |
5
Years |
10
Years | |||
Fund |
15.47% | 12.03% | 3.66% | ||
MSCI Emerging Markets Index (net) (reflects no deduction for fees or
expenses) |
18.31% | 12.81% | 3.63% |
Investment Adviser
The Fund’s investment adviser is The Variable Annuity
Life Insurance Company.
VALIC Company I
- 4 -
Emerging
Economies Fund
The Fund is subadvised by JPMIM.
Portfolio
Managers
Name and Title | Portfolio
Manager of the Fund Since | |
Anuj Arora Managing Director and Co-Lead
Manager |
2011 | |
Joyce Weng Executive Director and Co-Lead
Manager |
2017 |
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 St rallies on bright earnings, megacaps' support
- JPMorgan is worried about further S&P 500 sell-off potential
- Oil rises 1% as dollar slips, focus shifts to economic data
- China acquired top-end Nvidia AI chips despite recent US ban- Reuters
- SAP Q1 results fall short of Wall Street estimates as transformation kicks off
- Fisker (FSR) Appoints Michael Healy as Chief Restructuring Officer
- Kroger (KR), Albertsons and C&S Wholesale Grocers Announce an Updated and Expanded Divestiture Plan
- Costar Group (CSGP) to Acquire Matterport (MTTR) for $5.50/sh Cash and Stock
- Jaguar Health (JAGX) Files $75M Mixed Shelf
- Apple (AAPL) PT Lowered to $210 at Morgan Stanley, 'We'd buy post-earnings weakness'
- 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
- After-hours movers: Netflix, Intuitive Surgical, Nordstrom, KB Home
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- AIG (AIG) Announces Retirement of David McElroy
- Typenex Medical Introduces Fluid Fighter Suction Canisters, Liners and Accessories to Fluid Waste Management Portfolio
- American International Group (AIG) PT Raised to $89 at Piper Sandler
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!