VALIC Company I Dynamic Allocation Fund (VDAFX)

Overview

The fund described operates as a fund-of-funds, primarily investing its assets into a range of underlying funds managed by VALIC Company I. Its investment strategy is divided into two main components. The majority of the fund's assets, ranging from 70% to 90%, are allocated to shares of these underlying funds. This allocation strategy allows the fund to diversify its investments across multiple asset classes and investment strategies, managed under the expertise of VALIC Company I. The remaining assets, constituting 10% to 30% of its portfolio, are invested in a mix of derivative instruments, fixed income securities, and short-term investments. This strategic blend aims to achieve the fund's objectives by capitalizing on the growth potential of equities through the underlying funds, while also seeking to manage risk and provide income through its investments in derivatives, bonds, and other short-term instruments.

Products and Services

• Underlying Funds Investment

  Roughly 70% to 90% of the fund's assets are allocated to shares of underlying funds, which are managed by VALIC Company I. This component of the fund's strategy leverages the expertise of VALIC in managing diverse portfolios, offering investors broad exposure to the equity markets through a single investment in the fund.

• Derivative Instruments

  A portion of the fund's assets, specifically 10% to 30%, is invested in derivative instruments. These financial instruments, such as futures, options, and swaps, are used to manage risk, hedge against market volatility, or speculate on various underlying financial assets' future movements.

• Fixed Income Securities

  Within the same 10% to 30% allocation of its portfolio, the fund invests in fixed income securities. These investments include bonds and other debt instruments that provide regular income through interest payments. Investing in fixed income securities is aimed at mitigating the fund's overall risk while targeting stable returns.

• Short-term Investments

  The fund also allocates a portion of its assets to short-term investments. These are typically lower-risk, highly liquid assets like money market instruments, designed to provide safety and modest income while preserving capital. This strategy is part of the fund's approach to manage liquidity and ensure flexibility in responding to market changes.