VALIC Company I Systematic Growth Fund (VCBCX)

Overview

The fund is designed to predominantly invest in equity securities that form part of the Russell 1000® Growth Index, which includes a selected group of U.S. large- and mid-cap companies known for their growth potential. These securities encompass a broad range, including common stock, preferred stock, convertible securities, rights, and warrants. The fund employs sub-advisers to manage segments of its assets, utilizing diverse investment strategies and techniques. Although the fund's focus is on growth characteristics as defined by the index provider, it operates as a non-diversified fund, implying a concentrated investment strategy in less number of holdings compared to diversified funds.

Products and Services

• Equity Securities Investment

  The fund invests in equity securities of companies listed in the Russell 1000® Growth Index at the time of purchase. These securities include common stocks, which represent shares of ownership in a company; preferred stocks, which offer dividends before common stocks and have priority in the event of liquidation; convertible securities that can be converted into a predetermined number of common stock shares; rights, which are options to purchase additional stock; and warrants, which are similar to options but issued by the company itself. This array of securities allows the fund to partake in the growth potential of its constituent companies.

• Management Strategies

  A unique aspect of the fund is its approach to asset management, which includes deployment of sub-advisers to oversee portions of the fund’s total assets. Each sub-adviser may employ different investment strategies and techniques, aiming to optimize the fund's performance by capitalizing on the diverse growth opportunities present within the Russell 1000® Growth Index's wide range of sectors and companies. This potentially allows for a more flexible and adaptive investment approach, tailored to navigate various market conditions.

• Non-Diversified Fund Structure

  As a non-diversified fund, this investment vehicle is characterized by a concentrated investment in fewer securities than a diversified fund. This approach is predicated on the belief that investing a larger portion of assets in fewer, carefully selected companies can potentially offer greater returns. However, it also comes with a higher level of risk due to the potential lack of investment spread across different sectors or companies. This structure is suitable for investors seeking growth through a focused portfolio and who are comfortable with the associated levels of risk.