Form 497K VALIC Co I
September 28, 2021 3:25 PM EDTSummary Prospectus
October 1, 2021
VALIC Company I
Mid Cap Strategic Growth Fund
(Ticker: VMSGX)
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 long-term capital growth.
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 |
0.67% |
Other
Expenses |
0.11% |
Total Annual Fund Operating
Expenses |
0.78% |
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 | |||
$80 | $249 | $433 | $966 |
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 49% of the average value of its portfolio.
Principal Investment Strategies of the Fund
The Subadvisers seek long-term capital growth by investing
primarily in growth-oriented equity securities of domestic and foreign mid-cap companies.
Under normal circumstances, at least 80% of the
Fund’s net assets will be invested in common stocks of mid-cap companies. Generally, mid-cap companies will include companies whose market capitalizations, at the time of purchase, range from the market capitalization of the smallest company
included in the Russell Midcap® Growth Index to the market capitalization of the largest company in the Russell Midcap® Growth Index during the most recent 12-month period. As of June 30, 2021, the
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VALIC Company I
Mid Cap Strategic Growth
Fund
largest stock by market capitalization in the Russell
Midcap® Growth Index was approximately $60.80 billion and the median was $14.2 billion.
The Fund may invest up to 25% of its net assets in
securities of foreign issuers, which may include emerging market securities. The securities in which the Fund may invest may be denominated in U.S. dollars or in currencies other than U.S. dollars. The Fund may also invest in private
placements.
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.
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.
Equity Securities Risk. The
Fund invests primarily 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.
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.
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 in current or expected earnings than the value of other stocks, because growth stocks trade at higher prices relative to current earnings.
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.
VALIC Company I
- 2 -
Mid Cap
Strategic Growth Fund
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.
Privately Placed Securities Risk. The Fund’s investments may also include privately placed securities, which are subject to resale restrictions. These securities will have the effect of increasing the level of Fund illiquidity to the extent the
Fund may be unable to sell or transfer these securities due to restrictions on transfers or on the ability to find buyers interested in purchasing the securities. The illiquidity of the market, as well as the lack of publicly available information
regarding these securities, may also adversely affect the ability to arrive at a fair value for certain securities at certain times and could make it difficult for the Fund to sell certain securities.
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 Midcap® Growth 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.
Morgan Stanley Investment Management Inc. (“Morgan
Stanley”) served as a subadviser from the Fund’s inception through December 7, 2015. Janus Capital Management LLC (“Janus”) assumed sub-advisory duties of the Fund effective December 7, 2015. PineBridge Investments LLC served
as a subadviser from the Fund’s inception through March 22, 2011. Allianz Global Investors U.S. LLC (“AllianzGI”) assumed sub-advisory duties of the Fund effective March 22, 2011.
The percentage of the Fund’s assets that each subadviser manages may, at the adviser’s discretion, change from time to time.
VALIC Company I
- 3 -
Mid Cap
Strategic Growth Fund
During the period shown in the bar chart:
Highest
Quarterly Return: |
June 30, 2020 | 27.28% |
Lowest
Quarterly Return: |
March 31, 2020 | -21.73% |
Year
to Date Most Recent Quarter: |
June 30, 2021 | 10.43% |
Average Annual Total Returns (For the periods ended December 31, 2020)
1
Year |
5
Years |
10
Years | |||
Fund |
34.23% | 19.53% | 13.22% | ||
Russell Midcap® Growth Index (reflects no deduction for fees, expenses or
taxes) |
35.59% | 18.66% | 15.04% |
Investment Adviser
The Fund’s investment adviser is The Variable Annuity
Life Insurance Company.
The Fund is subadvised by Janus
and AllianzGI.
Portfolio
Managers
Name and Title | Portfolio
Manager of the Fund Since | |
Janus | ||
Brian Demain, CFA Portfolio
Manager |
2015 | |
Cody Wheaton, CFA Portfolio
Manager |
2016 | |
AllianzGI | ||
Jeffrey D. Parker, CFA Managing Director and Senior Portfolio Manager, Co-Lead Portfolio
Manager |
2020 | |
Raymond F. Cunha, CFA Director and Senior Portfolio Manager, Co-Lead Portfolio
Manager |
2020 |
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
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