VALIC Company I Government Securities Fund (VCGSX)

Overview

The fund is designed to offer investors exposure to a mix of government and government-sponsored debt securities, primarily focusing on intermediate- and long-term investments. By allocating at least 80% of its net assets in these securities, the fund aims to provide a stable and potentially growing income source. The fund's investment strategy is diversified across various debt instruments to mitigate risk while seeking to capitalize on opportunities within the U.S. government and high-quality corporate debt markets. It is also open to investing a portion of its assets in high-quality foreign investments denominated in U.S. dollars, providing an additional layer of diversification to its investors.

Products and Services

• U.S. Government and Government-Sponsored Debt Securities

  The fund primarily invests in intermediate- and long-term U.S. government and government-sponsored debt securities. These investments form the core of the fund's portfolio, aiming to offer stability and reliable returns by focusing on securities backed by the U.S. government.

• Mortgage-Backed Securities

  Part of the fund's strategy includes investing in mortgage-backed securities. These are type of asset-backed securities that are secured by a mortgage or collection of mortgages, providing another level of diversification and potential for income.

• Asset-Backed Securities

  The fund also diversifies its portfolio by investing in other types of asset-backed securities. These are financial securities backed by a loan, lease, or receivables against assets other than real estate and mortgage-backed securities, aiming to yield higher returns compared to standard government debt instruments.

• Repurchase Agreements

  Investments in repurchase agreements are also part of the fund's strategy. These short-term investments involve the purchase of securities with the agreement to sell them at a higher price at a future date. They are often used for short-term funding needs and add flexibility to the fund's liquidity management.

• High Quality Corporate Debt Securities

  The fund may invest in high-quality corporate debt securities. These are bonds issued by corporations with a high credit rating, offering a higher yield than government securities with a moderate increase in risk.

• High Quality Domestic Money Market Securities

  Portion of the fund's assets may be allocated to high-quality domestic money market securities. These include short-term debt instruments like treasury bills and commercial paper, providing liquidity and a safe, if modest, return.

• High Quality Foreign Investments Payable in U.S. Dollars

  Up to 20% of the fund's net assets may be invested in high-quality foreign investments payable in U.S. dollars. This strategy aims to tap into the growth potential of foreign markets while mitigating currency risk, contributing to the fund's diversification and potential for enhanced returns.