Form 497K VALIC Co I
Summary Prospectus
October 1, 2022
VALIC Company I
Small Cap Special Values Fund
(Ticker: VSSVX)
The 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 produce growth of capital by investing primarily in common stocks.
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 |
0.12% |
| Total Annual Fund Operating Expenses |
0.87% |
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 |
| $89 |
$278 |
$482 |
$1,073 |
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 20% of the average value of its
portfolio.
Principal Investment Strategies of the Fund
Under normal market conditions, the Fund invests at least 80% of its net assets in common stocks of domestic
small-cap companies. Generally, small-cap companies will include companies whose market capitalizations, at
the time of purchase, are equal to or less than the market capitalization of 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 $19.36 million to $14.62 billion.
The Subadviser
looks for undervalued companies that it believes have the potential for above-average capital appreciation with
below-average risk. Rigorous fundamental research drives its search for companies with favorable reward-to-risk
ratios and that possess a long-term competitive advantage provided by a durable asset base, strong balance
sheets, and sustainable and
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Small Cap Special Values Fund
superior cash
flows. Typical investments include stocks of companies that are generally out of favor in the marketplace, or
are undergoing reorganization or other corporate action that may create above-average price appreciation. The
Subadviser regularly reviews the investments of the portfolio and may sell a portfolio holding when a stock
nears its price target, downside risks increase considerably, the company’s fundamentals have
deteriorated, or the Subadviser identifies a more attractive investment opportunity.
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.
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.
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.
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.
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.
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
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Small Cap Special Values Fund
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 2000® 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.
Effective in the fourth quarter of 2021, Wells Capital Management Incorporated (“WellsCap”), the
Fund’s subadviser, changed its name to Allspring Global Investments, LLC (“Allspring”).
WellsCap (and its predecessor) has sub-advised the Fund since its inception. Putnam Investment Management, LLC
(“Putnam”) served as a co-subadviser of the Fund from inception through September 11, 2009.
Dreman Value Management, LLC (“Dreman”) replaced Putnam as the co-subadviser of the Fund from
September 11, 2009
through December 7, 2015. WellsCap, now Allspring, has served as the Fund’s sole subadviser since
December 7, 2015.
During the period shown in the bar chart:
| Highest Quarterly
Return: |
December 31, 2020 |
28.56% |
| Lowest Quarterly
Return: |
March 31, 2020 |
-33.63% |
| Year to Date Most
Recent Quarter: |
June 30, 2022 |
-15.53% |
Average Annual Total Returns (For the periods ended December 31, 2021)
| |
1
Year |
5
Years |
10 Years |
| Fund |
29.51% |
10.18% |
13.14%
|
| Russell 2000® Value Index (reflects no
deduction for fees, expenses or
taxes) |
28.27% |
9.07% |
12.03%
|
Investment Adviser
The Fund’s investment adviser is The Variable Annuity Life Insurance Company.
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Small Cap Special Values Fund
The Fund is subadvised by
Allspring.
Portfolio
Managers
| Name and Title |
Portfolio Manager of the Fund
Since |
| James M. Tringas, CFA Managing Director and Senior Portfolio Manager, Co-Lead Manager |
2005 |
| Bryant VanCronkhite, CFA Managing Director and Senior Portfolio Manager, Co-Lead Manager |
2013 |
| Brian Martin, CFA
Co-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.
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I
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