Form 497K VALIC Co I
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E-mailThe Fund’s
Statutory Prospectus and Statement of Additional Information, each dated October 1, 2022, 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 to provide 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 |
0.81% |
| Other Expenses |
0.11% |
| Total Annual Fund Operating Expenses |
0.92% |
| Fee Waivers and/or Expense Reimbursements1
|
0.03% |
| Total Annual Fund Operating Expenses
After Fee Waivers and/or Expense
Reimbursements1 |
0.89% |
1
The Fund’s investment adviser, The Variable Annuity Life Insurance Company (“VALIC”), has contractually agreed to waive its advisory fee until September 30, 2023, so that the advisory fee payable by the Fund to VALIC equals 0.82% on the first $100 million of the Fund’s average daily net assets and 0.77% on average daily
net assets over $100 million. This agreement will continue in effect from year to year thereafter and 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.
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 and/or expense reimbursements for year one. 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 |
| $91 |
$290 |
$506 |
$1,129 |
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.
VALIC
Company I
- 1 -
Small Cap Growth Fund
During the most
recent fiscal year, the Fund’s portfolio turnover rate was 34% of the average value of its portfolio.
Principal Investment Strategies of the Fund
Under normal market conditions, the Fund invests at least 80% of net assets in the equity securities of
small-cap companies. Typically, the Fund invests in securities of companies with a history of above-average
growth in revenues, earnings, cash flows and/or margin relative to peers, benchmarks or consensus expectations,
as well as companies expected to have above-average growth.
A company will be considered a small-cap company if its market capitalization, at time of purchase, is equal
to or less than the largest company in the Russell 2000® Index during the most recent 12-month period. As of May 31, 2022, the market capitalization range of the companies in the Russell 2000® Index was approximately $19.36 million to $14.62 billion. The subadviser may continue to hold an investment for further capital growth opportunities even if,
through market appreciation, the company’s market cap value exceeds these small cap
measures.
The Fund is managed by two subadvisers, J.P. Morgan Investment Management Inc. (“JPMIM”) and T. Rowe Price Associates, Inc. (“T. Rowe
Price”).
In managing its portion of the Fund, JPMIM employs a process to identify companies that have a history of above-average growth or which JPMIM believes will achieve above-average growth in the future. Growth companies purchased for the Fund include those, in the opinion of JPMIM, with leading competitive positions, predictable and durable business models and management that can achieve sustained growth.
T. Rowe Price manages the Fund’s investments in certain privately placed securities which will be
transferred to the Fund as part of the Reorganization, but does not currently intend to invest in additional
privately placed securities. Investments in privately placed securities are a non-principal investment strategy
of the Fund.
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 Fund may fail to produce the intended result. A subadviser’s
assessment of a particular security or company may prove incorrect, resulting in losses or
underperformance.
Equity Securities Risk. The Fund’s investments in equity securities are 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.
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
VALIC Company I
- 2 -
Small Cap Growth Fund
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.
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.
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.
Performance Information
As a result of a reorganization which occurred on May 24, 2021 (the “Reorganization”), the Fund
acquired all of the assets and liabilities of the Small Cap Growth Fund (the “Predecessor Fund”), a
series of VALIC Company II. The returns presented for the Fund reflect the performance of the Predecessor Fund.
The Fund had not yet commenced operations prior to the Reorganization. The performance information below is
based on the performance of the Predecessor Fund for periods prior to the date of the Reorganization. The Fund
and the Predecessor Fund had substantially similar investment objectives and strategies, and JPMIM also served
as the subadviser to the Predecessor Fund and had the same portfolio management team on the date of the
Reorganization. T. Rowe Price is subadviser for the fund since May 24, 2021.
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 2000® 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.
VALIC Company I
- 3 -
Small Cap Growth Fund
During the period shown in the bar chart:
| Highest Quarterly
Return: |
June 30, 2020 |
37.73% |
| Lowest Quarterly
Return: |
December 31, 2018 |
-21.70% |
| Year to Date Most
Recent Quarter: |
June 30, 2022 |
-32.78% |
Average Annual Total Returns (For the periods ended December 31, 2021)
| |
1
Year |
5
Years |
10 Years |
| Fund |
-4.98% |
23.04% |
17.43%
|
| Russell 2000® Growth Index (reflects
no deduction for fees, expenses or
taxes) |
2.83% |
14.53% |
14.14%
|
Investment Adviser
The Fund’s investment adviser is VALIC.
The Fund is subadvised by JPMIM and T. Rowe Price and sub-subadvised by T. Rowe Price Investment Management, Inc.
Portfolio
Managers
| Name and Title |
Portfolio
Manager of the Fund Since |
| JPMIM |
|
| Eytan M. Shapiro
Managing Director and Lead Manager |
2007* |
| Matthew Cohen
Managing Director and Co-Lead Manager |
2016* |
| T. Rowe Price |
|
| Frank M. Alonso
Vice President and Portfolio Manager |
May 2021 |
* Includes management of the Predecessor Fund.
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
- 4 -
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