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As Of Filer Filing For·On·As Docs:Size Issuer Agent 5/08/17 Valic Co II N-CSRS 2/28/17 3:10M Donnelley … Solutions/FA → Aggressive Growth Lifestyle Fund ⇒ VAGLX → Capital Appreciation Fund ⇒ VCCAX → Conservative Growth Lifestyle Fund ⇒ VCGLX → Core Bond Fund ⇒ VCCBX → Government Money Market II Fund ⇒ VIIXX → High Yield Bond Fund ⇒ VCHYX → International Opportunities Fund ⇒ VISEX → Large Cap Value Fund ⇒ VACVX → Mid Cap Growth Fund ⇒ VAMGX → Mid Cap Value Fund ⇒ VMCVX → Moderate Growth Lifestyle Fund ⇒ VMGLX → Small Cap Growth Fund ⇒ VASMX → Small Cap Value Fund ⇒ VCSVX → Strategic Bond Fund ⇒ VCSBX → U.S. Socially Responsible Fund ⇒ VCSRX |
Document/Exhibit Description Pages Size 1: N-CSRS Certified Semi-Annual Shareholder Report by a HTML 6.92M Management Investment Company 3: EX-99.906.CERT Miscellaneous Exhibit HTML 6K 2: EX-99.CERT Miscellaneous Exhibit HTML 18K
N-CSRS |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08789
VALIC Company II
(Exact name of registrant as specified in charter)
2929 Allen Parkway, Houston, TX 77019
(Address of principal executive offices) (Zip code)
President
SunAmerica Asset Management, LLC
Harborside 5
185 Hudson Street, Suite 3300
(Name and address of agent for service)
Registrant’s telephone number, including area code: (201) 324-6414
Date of fiscal year end: August 31
Date of reporting period: February 28, 2017
Item 1. Reports to Stockholders
VALIC Company II
Semi-Annual Report, February 28, 2017
SAVING : INVESTING : PLANNING
VALIC Company II
SEMI-ANNUAL REPORT FEBRUARY 28, 2017
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VALIC Company II
PRESIDENT’S LETTER (Unaudited)
Dear Valued Investor:
We are pleased to provide you with the following Semi-Annual Report for VALIC Company II. The report contains the investment portfolio information and the financial statements of VALIC Company II for the six-month period ended February 28, 2017. We encourage you to carefully read this report and thank you for your investment.
Domestically, the total return for the S&P 500® Index,* widely regarded as the best single gauge of the U.S. equity market, rose 10.01% during the six month period ended February 28, 2017. The election of Donald Trump as the next U.S. President changed the course of the fourth quarter. After the S&P 500’s nearly 2% decline in October, the U.S. equity market completely reversed itself and rallied into year-end, supported by continued improvement of economic fundamentals and ignited by the anticipation of tax cuts and reform, regulatory relief and infrastructure spending under the new administration. In short, a renewed optimism of stronger economic growth captured the markets, rallying U.S. equities and raising U.S. Treasury yields. There also was important news in the oil markets. At the end of the period, OPEC reached an agreement to cut oil production. This served to increase oil prices, a dramatic reversal from the low price levels seen earlier in the year. In February, all major benchmarks hit record highs.
As anticipated prior to the presidential election, the Federal Reserve (the “Fed”) increased the federal funds target rate by 0.25% to a range between 0.50% and 0.75% following their December meeting. Notes released from the Fed cited a better labor market and inflation moving toward the Fed’s 2% target level. The Federal Reserve is forecasted to increase rates three more time in 2017 as it seeks to normalize interest rates.
During the six month period ended February 28, 2017 fixed income markets declined across most of the spectrum, with the Bloomberg Barclays U.S. Aggregate Bond Index,** a broad measure of the bond market, down 2.19%. Long Treasuries, as measured by the Bloomberg Barclays US Treasury Long Index,*** erased most of the gains made in the first half of the 2016, declining -11.39% and only risk assets, such as high yield assets, gained some ground.
The MSCI EAFE Index (net),**** designed to measure the equity market performance of developed foreign markets (Europe, Australasia, Far East), excluding the U.S. and Canada, rose 4.90% during the six month period ended February 28, 2017. Global growth continued to slow during the period which weighed heavily on international markets. Further compounding global pressures was the shadow that was cast over the Eurozone amidst the fallout and potential ramifications from the United Kingdom’s vote to leave the European Union, dubbed “Brexit” (British Exit).
We appreciate being part of your investment program and thank you for your ongoing confidence in us. We look forward to serving your investment needs in the years ahead.
Sincerely,
John T. Genoy, President
VALIC Company II
Past performance is no guarantee of future results.
* | The S&P 500® Index is an index of the stocks of 500 major large-cap U.S. corporations, chosen for market size, liquidity, and industry group representation. It is a market-value weighted index, with each stock’s percentage in the Index in proportion to its market value. |
** | The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage- and asset-backed securities and commercial mortgage-backed securities. |
*** | The Bloomberg Barclays US Treasury Index measures US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury. Treasury bills are excluded by the maturity constraint, but are part of a separate Short Treasury Index. STRIPS are excluded from the index because their inclusion would result in double-counting. |
**** | The MSCI EAFE Index (net) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consists of the following 21 developed market countries: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. |
Indices are not managed and an investor cannot invest directly into an index. Past performance of an index does not guarantee the future performance of any investment.
1
VALIC Company II
EXPENSE EXAMPLE — February 28, 2017 (unaudited)
Disclosure of Fund Expenses in Shareholder Reports
As a shareholder of a Fund in VALIC Company II (“VC II”), you incur ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at September 1, 2016 and held until February 28, 2017. Shares of VC II are currently issued and redeemed only in connection with investments in and payments under variable annuity contracts and variable life insurance policies (“Variable Contracts”), qualified retirement plans (the “Plans”) and Individual Retirement Plan Accounts (“IRA”) offered by The Variable Annuity Life Insurance Company (“VALIC”), the investment adviser to VC II and other life insurance companies affiliated with VALIC. The fees and expenses associated with the Variable Contracts, Plans and IRA’s are not included in these Examples, and had such fees and expenses been included, your costs would have been higher. Please see your Variable Contract prospectus or Plan/IRA documents for more details on the fees associated with the Variable Contract, Plans or IRA’s.
Actual Expenses
The “Actual” section of the table provides information about your actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the column under the heading entitled “Expenses Paid During the Six Months Ended February 28, 2017” to estimate the expenses you paid on your account during this period. The “Expenses Paid During the Six Months Ended February 28, 2017” column and the “Annualized Expense Ratio” column do not include fees and expenses that may be charged by the Variable Contracts, Plans and IRA’s, in which the Funds are offered. Had these fees and expenses been included, the “Expenses Paid During the Six Months Ended February 28, 2017” column would have been higher and the “Ending Account Value” column would have been lower.
Hypothetical Example for Comparison Purposes
The “Hypothetical” section of the table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. The “Expenses Paid During the Six Months Ended February 28, 2017” column and the “Annualized Expense Ratio” column do not include fees and expenses that may be charged by the Variable Contracts, Plans or IRA’s in which the Funds are offered. Had these fees and expenses been included, the “Expenses Paid During the Six Months Ended February 28, 2017” column would have been higher and the “Ending Account Value” column would have been lower.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees and expenses that may be charged by the Variable Contracts, Plans or IRA’s. Please refer to your Variable Contract prospectus or Plan/IRA document for more information. Therefore, the “hypothetical” example is useful in comparing ongoing costs and will not help you determine the relative total costs of owning different funds. In addition, if these fees and expenses were included, your costs would have been higher.
2
VALIC Company II
EXPENSE EXAMPLE — February 28, 2017 (unaudited) — (continued)
Actual |
Hypothetical |
|||||||||||||||||||||||||||
Fund |
Beginning Account Value at September 1, 2016 |
Ending Account Value Using Actual Return at February 28, 2017 |
Expenses Paid During the Six Months Ended February 28, 2017* |
Beginning Account Value at September 1, 2016 |
Ending Account Value Using a Hypothetical 5% Annual Return at February 28, 2017 |
Expenses Paid During the Six Months Ended February 28, 2017* |
Annualized Expense Ratio |
|||||||||||||||||||||
Aggressive Growth Lifestyle# |
$ | 1,000.00 | $ | 1,058.60 | $ | 0.51 | $ | 1,000.00 | $ | 1,024.30 | $ | 0.50 | 0.10 | % | ||||||||||||||
Capital Appreciation# |
$ | 1,000.00 | $ | 1,065.04 | $ | 4.35 | $ | 1,000.00 | $ | 1,020.58 | $ | 4.26 | 0.85 | % | ||||||||||||||
Conservative Growth Lifestyle# |
$ | 1,000.00 | $ | 1,024.54 | $ | 0.50 | $ | 1,000.00 | $ | 1,024.30 | $ | 0.50 | 0.10 | % | ||||||||||||||
Core Bond# |
$ | 1,000.00 | $ | 985.84 | $ | 3.79 | $ | 1,000.00 | $ | 1,020.98 | $ | 3.86 | 0.77 | % | ||||||||||||||
Government Money Market II# |
$ | 1,000.00 | $ | 1,000.10 | $ | 2.28 | $ | 1,000.00 | $ | 1,022.51 | $ | 2.31 | 0.46 | % | ||||||||||||||
High Yield Bond |
$ | 1,000.00 | $ | 1,042.33 | $ | 4.86 | $ | 1,000.00 | $ | 1,020.03 | $ | 4.81 | 0.96 | % | ||||||||||||||
International Opportunities# |
$ | 1,000.00 | $ | 1,018.75 | $ | 5.01 | $ | 1,000.00 | $ | 1,019.84 | $ | 5.01 | 1.00 | % | ||||||||||||||
Large Cap Value# |
$ | 1,000.00 | $ | 1,139.05 | $ | 4.30 | $ | 1,000.00 | $ | 1,020.78 | $ | 4.06 | 0.81 | % | ||||||||||||||
Mid Cap Growth# |
$ | 1,000.00 | $ | 1,085.51 | $ | 4.40 | $ | 1,000.00 | $ | 1,020.58 | $ | 4.26 | 0.85 | % | ||||||||||||||
Mid Cap Value |
$ | 1,000.00 | $ | 1,105.14 | $ | 5.43 | $ | 1,000.00 | $ | 1,019.64 | $ | 5.21 | 1.04 | % | ||||||||||||||
Moderate Growth Lifestyle# |
$ | 1,000.00 | $ | 1,045.06 | $ | 0.51 | $ | 1,000.00 | $ | 1,024.30 | $ | 0.50 | 0.10 | % | ||||||||||||||
Small Cap Growth# |
$ | 1,000.00 | $ | 1,113.38 | $ | 6.08 | $ | 1,000.00 | $ | 1,019.04 | $ | 5.81 | 1.16 | % | ||||||||||||||
Small Cap Value# |
$ | 1,000.00 | $ | 1,145.17 | $ | 5.05 | $ | 1,000.00 | $ | 1,020.08 | $ | 4.76 | 0.95 | % | ||||||||||||||
Socially Responsible# |
$ | 1,000.00 | $ | 1,089.96 | $ | 2.90 | $ | 1,000.00 | $ | 1,022.02 | $ | 2.81 | 0.56 | % | ||||||||||||||
Strategic Bond |
$ | 1,000.00 | $ | 1,010.64 | $ | 4.34 | $ | 1,000.00 | $ | 1,020.48 | $ | 4.36 | 0.87 | % |
* | Expenses are equal to each Fund‘s annualized expense ratio multiplied by the average account value over the period, multiplied by 181 days then divided by 365 days (to reflect the one-half year period) . These ratios do not reflect fees and expenses associated with the Variable Contracts, Plans or IRA‘s. If such fees and expenses had been included, the expenses would have been higher. Please refer to your Variable Contract prospectus for details on the expenses that apply to the Variable Contracts or your Plan/IRA document for details on the administration fees charged by your Plan sponsor. |
# | During the stated period, the investment adviser waived a portion of or all fees and assumed a portion of or all expenses for the Fund. As a result, if these fees and expenses had not been waived or assumed, the “Actual/Hypothetical Ending Account Value” would have been lower and the “Actual/Hypothetical Expenses Paid During the Six Months Ended February 28, 2017” and the “Annualized Expense Ratio” would have been higher. |
3
VALIC Company II Aggressive Growth Lifestyle Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Domestic Equity Investment Companies |
52.9 | % | ||
Domestic Fixed Income Investment Companies |
23.0 | |||
International Equity Investment Companies |
15.7 | |||
Real Estate Investment Companies |
7.0 | |||
International Fixed Income Investment Companies |
1.4 | |||
100.0 | % | |||
* | Calculated as a percentage of net assets |
4 |
VALIC Company II Aggressive Growth Lifestyle Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Shares | Value (Note 2) |
||||||
AFFILIATED REGISTERED INVESTMENT COMPANIES#(1) — 100.0% |
| |||||||
Domestic Equity Investment Companies — 52.9% |
| |||||||
VALIC Co. I Blue Chip Growth Fund |
909,742 | $ | 14,428,508 | |||||
VALIC Co. I Dividend Value Fund |
1,582,234 | 18,907,697 | ||||||
VALIC Co. I Mid Cap Index Fund |
1,275,024 | 33,749,893 | ||||||
VALIC Co. I Mid Cap Strategic Growth Fund |
385,710 | 5,091,370 | ||||||
VALIC Co. I Nasdaq-100 Index Fund |
651,136 | 7,253,658 | ||||||
VALIC Co. I Science & Technology Fund |
245,651 | 5,753,143 | ||||||
VALIC Co. I Small Cap Index Fund |
2,075,638 | 42,343,007 | ||||||
VALIC Co. I Small Cap Special Values Fund |
1,180,060 | 15,836,405 | ||||||
VALIC Co. I Stock Index Fund |
634,315 | 22,575,262 | ||||||
VALIC Co. I Value Fund |
223,369 | 3,703,466 | ||||||
VALIC Co. II Capital Appreciation Fund |
1,052,411 | 17,922,554 | ||||||
VALIC Co. II Large Cap Value Fund |
534,897 | 11,216,788 | ||||||
VALIC Co. II Mid Cap Growth Fund |
627,775 | 5,737,865 | ||||||
VALIC Co. II Mid Cap Value Fund |
2,155,780 | 48,720,631 | ||||||
VALIC Co. II Small Cap Growth Fund |
738,128 | 11,662,422 | ||||||
VALIC Co. II Small Cap Value Fund |
1,791,115 | 27,833,933 | ||||||
Total Domestic Equity Investment Companies |
||||||||
(cost $262,890,222) |
292,736,602 | |||||||
Domestic Fixed Income Investment Companies — 23.0% |
| |||||||
VALIC Co. I Capital Conservation Fund |
725,386 | 7,043,502 | ||||||
VALIC Co. I Government Securities Fund |
738,422 | 7,746,047 | ||||||
VALIC Co. I Inflation Protected Fund |
3,176,961 | 34,787,725 | ||||||
VALIC Co. II Core Bond Fund |
536,892 | 5,980,982 | ||||||
VALIC Co. II High Yield Bond Fund |
4,192,344 | 33,035,671 | ||||||
VALIC Co. II Strategic Bond Fund |
3,403,953 | 38,805,063 | ||||||
Total Domestic Fixed Income Investment Companies |
||||||||
(cost $125,282,652) |
127,398,990 | |||||||
Security Description | Shares | Value (Note 2) |
||||||
International Equity Investment Companies — 15.7% |
| |||||||
VALIC Co. I Emerging Economies Fund |
1,869,060 | $ | 13,849,737 | |||||
VALIC Co. I Foreign Value Fund |
2,815,209 | 27,842,419 | ||||||
VALIC Co. I International Equities Index Fund |
2,601,878 | 16,704,054 | ||||||
VALIC Co. I International Growth Fund |
953,409 | 11,154,880 | ||||||
VALIC Co. II International Opportunities Fund |
1,045,838 | 17,047,157 | ||||||
Total International Equity Investment Companies |
||||||||
(cost $88,414,763) |
86,598,247 | |||||||
International Fixed Income Investment Companies — 1.4% |
| |||||||
VALIC Co. I International Government Bond Fund |
||||||||
(cost $7,956,156) |
672,812 | 7,629,690 | ||||||
Real Estate Investment Companies — 7.0% |
| |||||||
VALIC Co. I Global Real Estate Fund |
||||||||
(cost $42,648,282) |
5,250,274 | 39,009,533 | ||||||
TOTAL INVESTMENTS |
||||||||
(cost $527,192,075)(2) |
100.0 | % | 553,373,062 | |||||
Liabilities in excess of other assets |
(0.0 | ) | (75,487 | ) | ||||
NET ASSETS |
100.0 | % | $ | 553,297,575 | ||||
# | The Aggressive Growth Lifestyle Fund invests in various VALIC Company I or VALIC Company II Funds, some of which are not presented in this report. Additional information on the underlying funds including such fund’s prospectuses and shareholder reports is available at our website, www.valic.com. |
(1) | See Note 3. |
(2) | See Note 5 for cost of investments on a tax basis. |
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 -
Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Affiliated Registered Investment Companies |
$ | 553,373,062 | $ | — | $ | — | $ | 553,373,062 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
See Notes to Financial Statements
5 |
VALIC Company II Capital Appreciation Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Applications Software |
10.2 | % | ||
Web Portals/ISP |
5.8 | |||
Medical — HMO |
4.3 | |||
Cable/Satellite TV |
4.1 | |||
Medical — Drugs |
3.9 | |||
Internet Content — Entertainment |
3.9 | |||
E-Commerce/Products |
3.5 | |||
Medical — Biomedical/Gene |
3.5 | |||
Electronic Components — Semiconductors |
3.4 | |||
Food — Misc./Diversified |
3.3 | |||
Time Deposits |
2.8 | |||
Retail — Discount |
2.3 | |||
Instruments — Controls |
2.2 | |||
E-Commerce/Services |
2.2 | |||
Retail — Building Products |
2.2 | |||
Registered Investment Companies |
2.0 | |||
Diversified Banking Institutions |
1.9 | |||
Finance — Other Services |
1.8 | |||
Enterprise Software/Service |
1.8 | |||
Retail — Perfume & Cosmetics |
1.8 | |||
Diagnostic Equipment |
1.6 | |||
Television |
1.6 | |||
Finance — Consumer Loans |
1.5 | |||
Chemicals — Diversified |
1.5 | |||
Oil — Field Services |
1.5 | |||
Aerospace/Defense — Equipment |
1.4 | |||
Retail — Restaurants |
1.4 | |||
Transport — Rail |
1.3 | |||
Home Decoration Products |
1.3 | |||
Brewery |
1.3 | |||
Aerospace/Defense |
1.2 | |||
Steel — Producers |
1.1 | |||
Investment Management/Advisor Services |
1.1 | |||
Exchange-Traded Funds |
1.1 | |||
Medical Instruments |
1.1 | |||
Electronic Measurement Instruments |
1.1 | |||
Diversified Manufacturing Operations |
1.0 | |||
Cellular Telecom |
1.0 | |||
Building Products — Cement |
1.0 | |||
Retail — Major Department Stores |
1.0 | |||
Dental Supplies & Equipment |
0.9 | |||
Retail — Drug Store |
0.9 | |||
Networking Products |
0.8 | |||
Oil Companies — Exploration & Production |
0.8 | |||
Computers — Memory Devices |
0.8 | |||
Computer Software |
0.8 | |||
Commercial Services |
0.8 | |||
Computer Services |
0.7 | |||
Computer Data Security |
0.6 | |||
Commercial Services — Finance |
0.6 | |||
Auto/Truck Parts & Equipment — Original |
0.5 | |||
Therapeutics |
0.4 | |||
100.6 | % | |||
* | Calculated as a percentage of net assets |
6 |
VALIC Company II Capital Appreciation Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Shares | Value |
||||||
COMMON STOCKS — 94.7% |
| |||||||
Aerospace/Defense — 1.2% |
| |||||||
Raytheon Co. |
6,919 | $ | 1,066,564 | |||||
Aerospace/Defense - Equipment — 1.4% |
| |||||||
United Technologies Corp. |
11,189 | 1,259,322 | ||||||
Applications Software — 10.2% |
| |||||||
Citrix Systems, Inc.†# |
13,279 | 1,048,377 | ||||||
Intuit, Inc. |
11,131 | 1,396,272 | ||||||
Microsoft Corp. |
67,796 | 4,337,588 | ||||||
salesforce.com, Inc.† |
12,219 | 994,016 | ||||||
ServiceNow, Inc.† |
8,577 | 745,513 | ||||||
Twilio, Inc., Class A† |
13,587 | 430,980 | ||||||
8,952,746 | ||||||||
Auto/Truck Parts & Equipment - Original — 0.5% |
| |||||||
Delphi Automotive PLC |
6,170 | 469,722 | ||||||
Brewery — 1.3% |
| |||||||
Molson Coors Brewing Co., Class B |
11,196 | 1,123,966 | ||||||
Building Products - Cement — 1.0% |
| |||||||
Vulcan Materials Co. |
7,212 | 869,839 | ||||||
Cable/Satellite TV — 4.1% |
| |||||||
Charter Communications, Inc., Class A† |
4,457 | 1,439,878 | ||||||
Comcast Corp., Class A# |
58,524 | 2,189,968 | ||||||
3,629,846 | ||||||||
Cellular Telecom — 1.0% |
| |||||||
T-Mobile US, Inc.† |
13,937 | 871,481 | ||||||
Chemicals - Diversified — 1.5% |
| |||||||
Dow Chemical Co. |
21,231 | 1,321,842 | ||||||
Commercial Services — 0.8% |
| |||||||
Quanta Services, Inc.† |
17,876 | 667,132 | ||||||
Commercial Services - Finance — 0.6% |
| |||||||
Square, Inc., Class A† |
29,994 | 519,496 | ||||||
Computer Data Security — 0.6% |
| |||||||
Fortinet, Inc.† |
14,051 | 524,805 | ||||||
Computer Services — 0.7% |
| |||||||
Teradata Corp.†# |
21,151 | 657,796 | ||||||
Computer Software — 0.8% |
| |||||||
Splunk, Inc.†# |
10,954 | 676,190 | ||||||
Computers - Memory Devices — 0.8% |
| |||||||
Western Digital Corp. |
9,078 | 697,917 | ||||||
Dental Supplies & Equipment — 0.9% |
| |||||||
DENTSPLY SIRONA, Inc. |
12,478 | 792,603 | ||||||
Diagnostic Equipment — 1.6% |
| |||||||
Danaher Corp. |
16,786 | 1,436,042 | ||||||
Diversified Banking Institutions — 1.9% |
| |||||||
Goldman Sachs Group, Inc. |
3,938 | 976,860 | ||||||
JPMorgan Chase & Co. |
7,608 | 689,437 | ||||||
1,666,297 | ||||||||
Diversified Manufacturing Operations — 1.0% |
| |||||||
Eaton Corp. PLC |
12,119 | 872,326 | ||||||
E-Commerce/Products — 3.5% |
| |||||||
Amazon.com, Inc.† |
3,640 | 3,075,946 | ||||||
E-Commerce/Services — 2.2% |
| |||||||
Priceline Group, Inc.† |
1,125 | 1,939,646 | ||||||
Electronic Components - Semiconductors — 3.4% |
| |||||||
Broadcom, Ltd. |
6,991 | 1,474,611 | ||||||
Texas Instruments, Inc. |
20,493 | 1,570,174 | ||||||
3,044,785 | ||||||||
Security Description | Shares | Value |
||||||
Electronic Measurement Instruments — 1.1% |
| |||||||
Fortive Corp. |
16,199 | $ | 933,872 | |||||
Enterprise Software/Service — 1.8% |
| |||||||
Oracle Corp. |
36,565 | 1,557,303 | ||||||
Finance - Consumer Loans — 1.5% |
| |||||||
Synchrony Financial |
37,125 | 1,345,410 | ||||||
Finance - Other Services — 1.8% |
| |||||||
CME Group, Inc.# |
12,841 | 1,559,668 | ||||||
Food - Misc./Diversified — 3.3% |
| |||||||
Conagra Brands, Inc. |
20,011 | 824,653 | ||||||
Kellogg Co. |
12,445 | 921,801 | ||||||
Kraft Heinz Co. |
13,148 | 1,203,174 | ||||||
2,949,628 | ||||||||
Home Decoration Products — 1.3% |
| |||||||
Newell Brands, Inc.# |
23,403 | 1,147,449 | ||||||
Instruments - Controls — 2.2% |
| |||||||
Honeywell International, Inc. |
15,796 | 1,966,602 | ||||||
Internet Content - Entertainment — 3.9% |
| |||||||
Facebook, Inc., Class A† |
25,280 | 3,426,451 | ||||||
Investment Management/Advisor Services — 1.1% |
| |||||||
Ameriprise Financial, Inc. |
7,567 | 995,060 | ||||||
Medical Instruments — 1.1% |
| |||||||
Boston Scientific Corp.† |
38,349 | 941,468 | ||||||
Medical - Biomedical/Gene — 3.5% |
| |||||||
BioMarin Pharmaceutical, Inc.† |
12,398 | 1,164,544 | ||||||
Celgene Corp.† |
15,242 | 1,882,540 | ||||||
3,047,084 | ||||||||
Medical - Drugs — 3.9% |
| |||||||
Eli Lilly & Co. |
21,784 | 1,803,933 | ||||||
TESARO, Inc.†# |
4,200 | 791,154 | ||||||
Zoetis, Inc. |
16,268 | 867,247 | ||||||
3,462,334 | ||||||||
Medical - HMO — 4.3% |
| |||||||
Aetna, Inc. |
7,480 | 963,125 | ||||||
UnitedHealth Group, Inc. |
17,352 | 2,869,674 | ||||||
3,832,799 | ||||||||
Networking Products — 0.8% |
| |||||||
Cisco Systems, Inc. |
21,221 | 725,334 | ||||||
Oil Companies - Exploration & Production — 0.8% |
| |||||||
Pioneer Natural Resources Co.# |
3,880 | 721,564 | ||||||
Oil - Field Services — 1.5% |
| |||||||
Schlumberger, Ltd. |
6,060 | 486,982 | ||||||
Superior Energy Services, Inc.† |
48,378 | 798,237 | ||||||
1,285,219 | ||||||||
Retail - Building Products — 2.2% |
| |||||||
Home Depot, Inc. |
13,178 | 1,909,624 | ||||||
Retail - Discount — 2.3% |
| |||||||
Costco Wholesale Corp. |
11,452 | 2,029,065 | ||||||
Retail - Drug Store — 0.9% |
| |||||||
Walgreens Boots Alliance, Inc. |
8,770 | 757,553 | ||||||
Retail - Major Department Stores — 1.0% |
| |||||||
TJX Cos., Inc. |
10,990 | 862,166 | ||||||
Retail - Perfume & Cosmetics — 1.8% |
| |||||||
Ulta Beauty, Inc.† |
5,682 | 1,553,629 | ||||||
7 |
VALIC Company II Capital Appreciation Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares/ Principal Amount |
Value (Note 2) |
||||||
COMMON STOCKS (continued) |
| |||||||
Retail - Restaurants — 1.4% |
| |||||||
Starbucks Corp.# |
21,705 | $ | 1,234,363 | |||||
Steel - Producers — 1.1% |
| |||||||
Nucor Corp. |
16,217 | 1,014,698 | ||||||
Television — 1.6% |
| |||||||
CBS Corp., Class B |
20,925 | 1,379,376 | ||||||
Therapeutics — 0.4% |
| |||||||
Neurocrine Biosciences, Inc.†# |
7,840 | 346,214 | ||||||
Transport - Rail — 1.3% |
| |||||||
Union Pacific Corp. |
11,041 | 1,191,766 | ||||||
Web Portals/ISP — 5.8% |
| |||||||
Alphabet, Inc., Class A† |
2,652 | 2,240,754 | ||||||
Alphabet, Inc., Class C† |
3,533 | 2,908,401 | ||||||
5,149,155 | ||||||||
Total Common Stocks |
||||||||
(cost $65,624,817) |
83,461,163 | |||||||
EXCHANGE-TRADED FUNDS — 1.1% |
| |||||||
iShares Russell 1000 Growth ETF# |
||||||||
(cost $862,403) |
8,363 | 943,096 | ||||||
Total Long-Term Investment Securities |
||||||||
(cost $66,487,220) |
84,404,259 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 4.8% |
||||||||
Registered Investment Companies — 2.0% |
||||||||
State Street Navigator Securities Lending Government Money Market Portfolio 0.50%(1)(2) |
1,724,967 | 1,724,967 | ||||||
Time Deposits — 2.8% |
||||||||
Euro Time Deposit with State Street Bank and Trust Co. 0.07% due 03/01/2017 |
$ | 2,499,000 | 2,499,000 | |||||
Total Short-Term Investment Securities |
||||||||
(cost $4,223,967) |
4,223,967 | |||||||
TOTAL INVESTMENTS |
||||||||
(cost $70,711,187)(3) |
100.6 | % | 88,628,226 | |||||
Liabilities in excess of other assets |
(0.6 | ) | (545,711 | ) | ||||
NET ASSETS |
100.0 | % | $ | 88,082,515 | ||||
† | Non-income producing security |
# | The security or a portion thereof is out on loan (see Note 2). |
(1) | At February 28, 2017, the Fund had loaned securities with a total value of $8,837,846. This was secured by collateral of $1,724,967 which was received in cash and subsequently invested in short-term investments currently valued at $1,724,967 as reported in the Portfolio of Investments. Additional collateral of $7,388,903 was received in the form of fixed income pooled securities, which the Fund cannot sell or repledge. |
The components of the fixed income pooled securities referenced above are as follows:
Securities |
Coupon Range |
Maturity Date Range |
Value as of February 28, 2017 |
|||||
Federal Home Loan Mtg. Corp. |
2.50% to 4.50% | 11/01/2027 to 09/01/2044 | $ | 829,681 | ||||
Federal National Mtg. Assoc. |
2.00% to 4.25% | 01/01/2032 to 02/25/2044 | 1,446,468 | |||||
Government National Mtg. Assoc. |
2.50% to 3.50% | 11/20/2027 to 11/20/2046 | 3,328,428 | |||||
United States Treasury Bills |
0.00% | 03/09/2017 to 12/07/2017 | 280,739 | |||||
United States Treasury Notes/Bonds |
0.13% to 4.63% | 07/15/2017 to 11/15/2046 | 1,503,587 |
(2) | The rate shown is the 7-day yield as of February 28, 2017. |
(3) | See Note 5 for cost of investments on a tax basis |
ETF—Exchange-Traded Fund
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 -
Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Common Stocks |
$ | 83,461,163 | $ | — | $ | — | $ | 83,461,163 | ||||||||
Exchange-Traded Funds |
943,096 | — | — | 943,096 | ||||||||||||
Short-Term Investment Securities: |
||||||||||||||||
Registered Investment Companies |
1,724,967 | — | — | 1,724,967 | ||||||||||||
Time Deposits |
— | 2,499,000 | — | 2,499,000 | ||||||||||||
Total Investments at Value |
$ | 86,129,226 | $ | 2,499,000 | $ | — | $ | 88,628,226 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
See Notes to Financial Statements
8 |
VALIC Company II Conservative Growth Lifestyle Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Domestic Fixed Income Investment Companies |
63.5 | % | ||
Domestic Equity Investment Companies |
23.8 | |||
International Equity Investment Companies |
6.4 | |||
Real Estate Investment Companies |
3.9 | |||
International Fixed Income Investment Companies |
2.4 | |||
100.0 | % | |||
* | Calculated as a percentage of net assets |
9 |
VALIC Company II Conservative Growth Lifestyle Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Shares | Value (Note 2) |
||||||
AFFILIATED REGISTERED INVESTMENT COMPANIES#(1) — 97.0% |
| |||||||
Domestic Equity Investment Companies — 23.8% |
| |||||||
VALIC Co. I Blue Chip Growth Fund |
110,445 | $ | 1,751,651 | |||||
VALIC Co. I Dividend Value Fund |
656,652 | 7,846,992 | ||||||
VALIC Co. I Mid Cap Index Fund |
378,371 | 10,015,483 | ||||||
VALIC Co. I Mid Cap Strategic Growth Fund |
27,485 | 362,799 | ||||||
VALIC Co. I Nasdaq-100 Index Fund |
68,436 | 762,379 | ||||||
VALIC Co. I Science & Technology Fund |
32,547 | 762,242 | ||||||
VALIC Co. I Small Cap Index Fund |
494,761 | 10,093,127 | ||||||
VALIC Co. I Small Cap Special Values Fund |
477,899 | 6,413,405 | ||||||
VALIC Co. I Stock Index Fund |
51,009 | 1,815,393 | ||||||
VALIC Co. I Value Fund |
55,985 | 928,225 | ||||||
VALIC Co. II Capital Appreciation Fund |
222,675 | 3,792,152 | ||||||
VALIC Co. II Large Cap Value Fund |
184,803 | 3,875,323 | ||||||
VALIC Co. II Mid Cap Growth Fund |
79,022 | 722,257 | ||||||
VALIC Co. II Mid Cap Value Fund |
883,903 | 19,976,204 | ||||||
VALIC Co. II Small Cap Growth Fund |
87,818 | 1,387,530 | ||||||
VALIC Co. II Small Cap Value Fund |
583,566 | 9,068,619 | ||||||
Total Domestic Equity Investment Companies |
||||||||
(cost $73,030,855) |
79,573,781 | |||||||
Domestic Fixed Income Investment Companies — 63.5% |
| |||||||
VALIC Co. I Capital Conservation Fund |
1,289,799 | 12,523,952 | ||||||
VALIC Co. I Government Securities Fund |
512,705 | 5,378,270 | ||||||
VALIC Co. I Inflation Protected Fund |
2,811,441 | 30,785,277 | ||||||
VALIC Co. II Core Bond Fund |
3,931,677 | 43,798,881 | ||||||
VALIC Co. II High Yield Bond Fund |
5,515,639 | 43,463,235 | ||||||
VALIC Co. II Strategic Bond Fund |
6,637,131 | 75,663,288 | ||||||
Total Domestic Fixed Income Investment Companies |
||||||||
(cost $210,795,515) |
211,612,903 | |||||||
International Equity Investment Companies — 6.4% |
| |||||||
VALIC Co. I Emerging Economies Fund |
592,625 | 4,391,349 | ||||||
VALIC Co. I Foreign Value Fund |
622,583 | 6,157,348 | ||||||
VALIC Co. I International Equities Index Fund |
797,847 | 5,122,179 | ||||||
VALIC Co. I International Growth Fund |
177,087 | 2,071,912 | ||||||
VALIC Co. II International Opportunities Fund |
215,031 | 3,505,001 | ||||||
Total International Equity Investment Companies |
||||||||
(cost $20,967,522) |
21,247,789 | |||||||
Security Description | Shares | Value (Note 2) |
||||||
International Fixed Income Investment Companies — 2.4% |
| |||||||
VALIC Co. I International Government Bond Fund (cost $8,190,509) |
694,322 | $ | 7,873,606 | |||||
Real Estate Investment Companies — 3.9% |
| |||||||
VALIC Co. I Global Real Estate Fund |
1,732,451 | 12,872,112 | ||||||
TOTAL INVESTMENTS |
||||||||
(cost $327,125,726)(2) |
100.0 | % | 333,180,191 | |||||
Liabilities in excess of other assets |
(0.0 | ) | (15,297 | ) | ||||
NET ASSETS |
100.0 | % | $ | 333,164,894 | ||||
# | The Conservative Growth Lifestyle Fund invests in various VALIC Company I or VALIC Company II Funds, some of which are not presented in this report. Additional information on the underlying funds including such fund’s prospectuses and shareholder reports is available at our website, www.valic.com. |
(1) | See Note 3 |
(2) | See Note 5 for cost of investments on a tax basis. |
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 - Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Affiliated Registered Investment Companies |
$ | 333,180,191 | $ | — | $ | — | $ | 333,180,191 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
See Notes to Financial Statements
10 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Federal National Mtg. Assoc. |
18.1 | % | ||
Federal Home Loan Mtg. Corp. |
14.8 | |||
United States Treasury Notes |
6.9 | |||
Diversified Banking Institutions |
5.5 | |||
United States Treasury Bonds |
5.3 | |||
Diversified Financial Services |
3.7 | |||
Time Deposits |
3.6 | |||
Banks — Commercial |
2.9 | |||
Pipelines |
2.2 | |||
Registered Investment Companies |
2.0 | |||
Auto — Cars/Light Trucks |
1.8 | |||
Oil Companies — Exploration & Production |
1.7 | |||
Government National Mtg. Assoc. |
1.7 | |||
Electric — Integrated |
1.7 | |||
Telephone — Integrated |
1.5 | |||
Oil Companies — Integrated |
1.2 | |||
Cable/Satellite TV |
1.2 | |||
Banks — Super Regional |
1.1 | |||
Insurance — Life/Health |
1.0 | |||
Computers |
1.0 | |||
Diversified Manufacturing Operations |
0.9 | |||
Paper & Related Products |
0.9 | |||
Savings & Loans/Thrifts |
0.9 | |||
Brewery |
0.7 | |||
Insurance — Multi-line |
0.7 | |||
Multimedia |
0.6 | |||
Medical Labs & Testing Services |
0.5 | |||
Real Estate Investment Trusts |
0.5 | |||
Networking Products |
0.4 | |||
Applications Software |
0.4 | |||
Enterprise Software/Service |
0.4 | |||
Finance — Other Services |
0.4 | |||
Insurance — Mutual |
0.4 | |||
Computer Services |
0.4 | |||
Medical — Drugs |
0.4 | |||
Agricultural Chemicals |
0.3 | |||
Medical — Hospitals |
0.3 | |||
Chemicals — Diversified |
0.3 | |||
Electronic Components — Semiconductors |
0.3 | |||
Medical — HMO |
0.3 | |||
Machinery — Farming |
0.3 | |||
Satellite Telecom |
0.3 | |||
Aerospace/Defense — Equipment |
0.3 | |||
Finance — Credit Card |
0.3 | |||
Medical — Biomedical/Gene |
0.3 | |||
Building — Residential/Commercial |
0.3 | |||
Cellular Telecom |
0.3 | |||
Rental Auto/Equipment |
0.3 | |||
Finance — Leasing Companies |
0.3 | |||
Tools — Hand Held |
0.3 | |||
Airlines |
0.2 | |||
Containers — Paper/Plastic |
0.2 | |||
Gambling (Non — Hotel) |
0.2 | |||
Computers — Memory Devices |
0.2 | |||
Auto — Heavy Duty Trucks |
0.2 | |||
Finance — Consumer Loans |
0.2 | |||
Finance — Auto Loans |
0.2 | |||
Food — Misc./Diversified |
0.2 | |||
Sovereign |
0.2 | |||
Chemicals — Specialty |
0.2 | |||
Building Products — Wood |
0.2 | |||
Oil — Field Services |
0.2 | |||
Cosmetics & Toiletries |
0.2 | |||
Cruise Lines |
0.2 | |||
Beverages — Non — alcoholic |
0.2 | |||
Casino Hotels |
0.2 | |||
Machinery — General Industrial |
0.2 | |||
Metal — Copper |
0.2 | |||
Electric — Generation |
0.2 |
Printing — Commercial |
0.2 | |||
Coal |
0.2 | |||
Transport — Rail |
0.2 | |||
Banks — Fiduciary |
0.2 | |||
Steel — Producers |
0.2 | |||
Advertising Agencies |
0.2 | |||
Hazardous Waste Disposal |
0.2 | |||
Electric — Distribution |
0.1 | |||
Building Products — Air & Heating |
0.1 | |||
Retail — Drug Store |
0.1 | |||
Real Estate Management/Services |
0.1 | |||
Metal Processors & Fabrication |
0.1 | |||
Independent Power Producers |
0.1 | |||
Beverages — Wine/Spirits |
0.1 | |||
Retail — Discount |
0.1 | |||
Transport — Equipment & Leasing |
0.1 | |||
Pharmacy Services |
0.1 | |||
Medical — Generic Drugs |
0.1 | |||
Computers — Integrated Systems |
0.1 | |||
Containers — Metal/Glass |
0.1 | |||
Energy — Alternate Sources |
0.1 | |||
Telecom Services |
0.1 | |||
Financial Guarantee Insurance |
0.1 | |||
Metal — Iron |
0.1 | |||
Data Processing/Management |
0.1 | |||
SupraNational Banks |
0.1 | |||
Internet Connectivity Services |
0.1 | |||
Retail — Appliances |
0.1 | |||
Food — Dairy Products |
0.1 | |||
Insurance — Reinsurance |
0.1 | |||
Broadcast Services/Program |
0.1 | |||
Internet Content — Entertainment |
0.1 | |||
Food — Retail |
0.1 | |||
Power Converter/Supply Equipment |
0.1 | |||
Aerospace/Defense |
0.1 | |||
Finance — Mortgage Loan/Banker |
0.1 | |||
Food — Wholesale/Distribution |
0.1 | |||
Finance — Investment Banker/Broker |
0.1 | |||
Oil Refining & Marketing |
0.1 | |||
Retail — Restaurants |
0.1 | |||
Marine Services |
0.1 | |||
Office Automation & Equipment |
0.1 | |||
Security Services |
0.1 | |||
Electronic Components — Misc. |
0.1 | |||
Appliances |
0.1 | |||
Building & Construction — Misc. |
0.1 | |||
Batteries/Battery Systems |
0.1 | |||
Telecommunication Equipment |
0.1 | |||
Chemicals — Plastics |
0.1 | |||
Food — Flour & Grain |
0.1 | |||
Gas — Distribution |
0.1 | |||
Soap & Cleaning Preparation |
0.1 | |||
Tennessee Valley Authority |
0.1 | |||
Hotels/Motels |
0.1 | |||
Retail — Building Products |
0.1 | |||
Semiconductor Equipment |
0.1 | |||
Commercial Services — Finance |
0.1 | |||
Home Furnishings |
0.1 | |||
Building Societies |
0.1 | |||
Gold Mining |
0.1 | |||
Travel Services |
0.1 | |||
Transport — Services |
0.1 | |||
102.6 | % | |||
* | Calculated as a percentage of net assets |
11 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Credit Quality†#
Aaa |
51.4 | % | ||
Aa |
4.1 | |||
A |
12.4 | |||
Baa |
17.4 | |||
Ba |
5.1 | |||
B |
5.5 | |||
Caa |
1.8 | |||
Not Rated@ |
2.3 | |||
100.0 | % | |||
† | Source: Moody’s |
# | Calculated as a percentage of total debt issues |
@ | Represents debt issues that either have no rating, or the rating is unavailable from the data source. |
12 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Principal Amount |
Value (Note 2) |
||||||
ASSET BACKED SECURITIES — 3.3% |
| |||||||
Diversified Financial Services — 3.3% |
| |||||||
American Express Credit Account Master Trust FRS |
$ | 239,000 | $ | 239,900 | ||||
AmeriCredit Automobile Receivables Trust |
525,000 | 530,365 | ||||||
BA Credit Card Trust |
1,217,000 | 1,216,226 | ||||||
Capital One Multi-Asset Execution Trust |
725,000 | 717,550 | ||||||
CarMax Auto Owner Trust |
1,048,000 | 1,032,859 | ||||||
CGGS Commercial Mtg. Trust |
2,800,000 | 2,818,869 | ||||||
Chase Mtg. Trust VRS |
1,986,265 | 1,986,826 | ||||||
Citibank Credit Card Issuance Trust |
446,000 | 450,069 | ||||||
Citigroup Commercial Mtg. Trust |
1,753,000 | 1,721,927 | ||||||
Citigroup Commercial Mtg. Trust |
1,478,000 | 1,501,092 | ||||||
Citigroup Commercial Mtg. Trust |
1,392,408 | 1,415,435 | ||||||
Commercial Mtg. Trust |
1,778,000 | 1,809,804 | ||||||
Commercial Mtg. Trust |
145,390 | 148,814 | ||||||
Commercial Mtg. Trust |
1,786,000 | 1,832,457 | ||||||
Commercial Mtg. Trust VRS |
754,000 | 784,326 | ||||||
Core Industrial Trust |
6,000 | 6,144 | ||||||
CSAIL Commercial Mortgage Trust |
86,800 | 88,692 | ||||||
CSAIL Commercial Mortgage Trust |
2,200,000 | 2,226,737 | ||||||
CSMC Trust |
1,500,000 | 1,586,200 | ||||||
Discover Card Execution Note Trust |
1,556,000 | 1,564,228 | ||||||
Ford Credit Auto Owner Trust |
1,023,000 | 1,026,592 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Diversified Financial Services (continued) |
| |||||||
GS Mtg. Securities Corp. II |
$ | 162,750 | $ | 165,409 | ||||
GS Mtg. Securities Trust |
61,000 | 62,276 | ||||||
GS Mtg. Securities Trust |
3,200,000 | 3,244,985 | ||||||
Honda Auto Receivables 2016-2 Owner Trust |
512,000 | 508,823 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust |
1,000,000 | 1,021,694 | ||||||
Morgan Stanley Capital Barclays Bank Trust |
2,397,000 | 2,353,006 | ||||||
Santander Drive Auto Receivables Trust |
620,000 | 624,357 | ||||||
Synchrony Credit Card Master Note Trust |
350,000 | 351,531 | ||||||
Synchrony Credit Card Master Note Trust |
277,000 | 275,773 | ||||||
Taco Bell Funding LLC |
521,380 | 523,230 | ||||||
Total Asset Backed Securities |
||||||||
(cost $34,035,585) |
33,836,196 | |||||||
U.S. CORPORATE BONDS & NOTES — 36.4% |
| |||||||
Advertising Agencies — 0.2% |
| |||||||
Interpublic Group of Cos., Inc. |
611,000 | 632,708 | ||||||
Omnicom Group, Inc. |
942,000 | 945,134 | ||||||
1,577,842 | ||||||||
Aerospace/Defense — 0.1% |
| |||||||
Boeing Co. |
875,000 | 846,478 | ||||||
Aerospace/Defense - Equipment — 0.3% |
| |||||||
Harris Corp. |
1,054,000 | 1,137,439 | ||||||
L-3 Technologies, Inc. |
716,000 | 725,802 | ||||||
Moog, Inc. |
409,000 | 419,225 | ||||||
Triumph Group, Inc. |
305,000 | 290,512 | ||||||
Triumph Group, Inc. |
470,000 | 444,150 | ||||||
3,017,128 | ||||||||
13 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Agricultural Chemicals — 0.3% |
| |||||||
CF Industries, Inc. |
$ | 320,000 | $ | 321,065 | ||||
CF Industries, Inc. |
1,619,000 | 1,658,533 | ||||||
Mosaic Co. |
914,000 | 857,931 | ||||||
Mosaic Co. |
619,000 | 645,323 | ||||||
3,482,852 | ||||||||
Airlines — 0.2% |
| |||||||
Allegiant Travel Co. |
447,000 | 460,410 | ||||||
American Airlines Pass-Through Trust |
1,395,000 | 1,412,438 | ||||||
Atlas Air, Inc. |
45,115 | 45,277 | ||||||
United Airlines Pass-Through Trust |
605,832 | 618,706 | ||||||
2,536,831 | ||||||||
Appliances — 0.1% |
| |||||||
Whirlpool Corp. |
634,000 | 638,993 | ||||||
Applications Software — 0.4% |
| |||||||
Microsoft Corp. |
713,000 | 717,908 | ||||||
Microsoft Corp. |
1,141,000 | 1,163,913 | ||||||
Microsoft Corp. |
440,000 | 421,050 | ||||||
Microsoft Corp. |
426,000 | 403,073 | ||||||
Microsoft Corp. |
1,199,000 | 1,243,054 | ||||||
Nuance Communications, Inc. |
390,000 | 398,287 | ||||||
4,347,285 | ||||||||
Auto - Cars/Light Trucks — 1.8% |
| |||||||
American Honda Finance Corp. |
1,383,000 | 1,365,722 | ||||||
American Honda Finance Corp. |
1,015,000 | 1,016,959 | ||||||
BMW US Capital LLC |
1,015,000 | 1,010,107 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Auto - Cars/Light Trucks (continued) |
| |||||||
Daimler Finance North America LLC |
$ | 1,497,000 | $ | 1,479,299 | ||||
Daimler Finance North America LLC |
911,000 | 888,112 | ||||||
Daimler Finance North America LLC |
834,000 | 836,473 | ||||||
Daimler Finance North America LLC |
1,839,000 | 1,843,710 | ||||||
Ford Motor Co. |
1,068,000 | 1,098,296 | ||||||
Ford Motor Co. |
812,000 | 839,527 | ||||||
Ford Motor Credit Co. LLC |
1,314,000 | 1,307,572 | ||||||
Ford Motor Credit Co. LLC |
1,309,000 | 1,287,824 | ||||||
Hyundai Capital America |
2,238,000 | 2,246,460 | ||||||
Toyota Motor Credit Corp. |
2,371,000 | 2,377,032 | ||||||
Toyota Motor Credit Corp. |
738,000 | 743,711 | ||||||
18,340,804 | ||||||||
Auto - Heavy Duty Trucks — 0.2% |
| |||||||
JB Poindexter & Co., Inc. |
597,000 | 626,104 | ||||||
PACCAR Financial Corp. |
1,620,000 | 1,633,698 | ||||||
2,259,802 | ||||||||
Banks - Commercial — 1.3% |
| |||||||
BankUnited, Inc. |
2,256,000 | 2,255,172 | ||||||
Citizens Bank NA |
514,000 | 513,012 | ||||||
Discover Bank |
757,000 | 741,774 | ||||||
Fifth Third Bank |
700,000 | 692,505 | ||||||
Fifth Third Bank |
450,000 | 453,654 | ||||||
Fifth Third Bank |
823,000 | 834,836 | ||||||
First Horizon National Corp. |
3,712,000 | 3,799,740 |
14 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Banks - Commercial (continued) |
| |||||||
First Republic Bank |
$ | 413,000 | $ | 417,593 | ||||
First Tennessee Bank NA |
979,000 | 990,746 | ||||||
Regions Financial Corp. |
428,000 | 436,378 | ||||||
Regions Financial Corp. |
1,907,000 | 2,380,884 | ||||||
13,516,294 | ||||||||
Banks - Fiduciary — 0.2% |
| |||||||
Citizens Financial Group, Inc. |
1,570,000 | 1,614,836 | ||||||
Banks - Super Regional — 0.9% |
| |||||||
JPMorgan Chase Bank NA |
1,985,000 | 1,979,319 | ||||||
Wells Fargo & Co. |
2,802,000 | 2,690,629 | ||||||
Wells Fargo & Co. |
1,970,000 | 1,979,277 | ||||||
Wells Fargo & Co. |
367,000 | 375,503 | ||||||
Wells Fargo & Co. |
961,000 | 1,000,434 | ||||||
Wells Fargo & Co. |
133,000 | 130,887 | ||||||
Wells Fargo & Co. |
834,000 | 870,024 | ||||||
Wells Fargo & Co. |
194,000 | 205,864 | ||||||
9,231,937 | ||||||||
Batteries/Battery Systems — 0.1% |
| |||||||
EnerSys |
605,000 | 615,587 | ||||||
Brewery — 0.7% |
| |||||||
Anheuser-Busch InBev Finance, Inc. |
753,000 | 755,480 | ||||||
Anheuser-Busch InBev Finance, Inc. |
1,408,000 | 1,423,713 | ||||||
Anheuser-Busch InBev Finance, Inc. |
617,000 | 630,581 | ||||||
Anheuser-Busch InBev Finance, Inc. |
1,481,000 | 1,592,724 | ||||||
Anheuser-Busch InBev Finance, Inc. |
835,000 | 916,560 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Brewery (continued) |
| |||||||
Anheuser-Busch InBev Worldwide, Inc. |
$ | 2,222,000 | $ | 2,223,155 | ||||
7,542,213 | ||||||||
Broadcast Services/Program — 0.1% |
| |||||||
Clear Channel Worldwide Holdings, Inc. |
911,000 | 920,110 | ||||||
Building & Construction Products-Misc. — 0.0% |
| |||||||
Standard Industries, Inc. |
381,000 | 388,620 | ||||||
Building & Construction-Misc. — 0.1% |
| |||||||
Weekley Homes LLC/Weekley Finance Corp. |
650,000 | 627,250 | ||||||
Building Products - Air & Heating — 0.1% |
| |||||||
Lennox International, Inc. |
1,240,000 | 1,224,289 | ||||||
Building Products - Wood — 0.2% |
| |||||||
Boise Cascade Co. |
600,000 | 613,500 | ||||||
Masco Corp. |
1,336,000 | 1,390,843 | ||||||
2,004,343 | ||||||||
Building - Residential/Commercial — 0.2% |
| |||||||
Lennar Corp. |
1,144,000 | 1,158,300 | ||||||
Meritage Homes Corp. |
500,000 | 561,250 | ||||||
1,719,550 | ||||||||
Cable/Satellite TV — 0.8% |
| |||||||
Block Communications, Inc. |
544,000 | 575,334 | ||||||
Cablevision Systems Corp. |
575,000 | 589,375 | ||||||
Charter Communications Operating LLC/Charter |
692,000 | 711,736 | ||||||
Charter Communications Operating LLC/Charter |
1,722,000 | 1,813,960 | ||||||
Charter Communications Operating LLC/Charter |
1,499,000 | 1,712,762 | ||||||
Charter Communications Operating LLC/Charter |
398,000 | 461,948 |
15 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Cable/Satellite TV (continued) |
| |||||||
Comcast Corp. |
$ | 720,000 | $ | 644,222 | ||||
Comcast Corp. |
380,000 | 329,380 | ||||||
CSC Holdings LLC |
300,000 | 308,625 | ||||||
DISH DBS Corp. |
729,000 | 852,930 | ||||||
8,000,272 | ||||||||
Casino Hotels — 0.2% |
| |||||||
Chester Downs & Marina LLC |
836,000 | 840,698 | ||||||
Downstream Development Authority of the Quapaw Tribe of Oklahoma |
413,000 | 409,903 | ||||||
Golden Nugget Escrow, Inc. |
628,000 | 670,390 | ||||||
1,920,991 | ||||||||
Cellular Telecom — 0.3% |
| |||||||
Sprint Corp. |
1,860,000 | 2,027,400 | ||||||
T-Mobile USA, Inc. |
654,000 | 671,985 | ||||||
2,699,385 | ||||||||
Chemicals - Diversified — 0.2% |
| |||||||
Eastman Chemical Co. |
588,000 | 602,221 | ||||||
Hexion, Inc. |
470,000 | 437,100 | ||||||
Hexion, Inc. |
105,000 | 108,150 | ||||||
Westlake Chemical Corp. |
874,000 | 858,744 | ||||||
2,006,215 | ||||||||
Chemicals - Plastics — 0.1% |
| |||||||
A. Schulman, Inc. |
554,000 | 584,470 | ||||||
Chemicals - Specialty — 0.2% |
| |||||||
HB Fuller Co. |
535,000 | 538,128 | ||||||
Lubrizol Corp. |
550,000 | 712,253 | ||||||
Unifrax I LLC/Unifrax Holding Co. |
791,000 | 789,022 | ||||||
2,039,403 | ||||||||
Security Description | Principal Amount |
Value (Note 2) |
||||||
Coal — 0.2% |
| |||||||
Peabody Securities Finance Corp. |
$ | 552,000 | $ | 563,040 | ||||
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp. |
1,134,000 | 1,156,680 | ||||||
1,719,720 | ||||||||
Coatings/Paint — 0.0% |
| |||||||
RPM International, Inc. |
484,000 | 484,697 | ||||||
Commercial Services - Finance — 0.1% |
| |||||||
Automatic Data Processing, Inc. |
547,000 | 552,288 | ||||||
Computer Services — 0.4% |
| |||||||
Harland Clarke Holdings Corp. |
560,000 | 578,550 | ||||||
Harland Clarke Holdings Corp. |
812,000 | 783,580 | ||||||
Hewlett Packard Enterprise Co. |
1,900,000 | 2,016,924 | ||||||
Leidos Holdings, Inc. |
525,000 | 546,074 | ||||||
3,925,128 | ||||||||
Computers — 1.0% |
| |||||||
Apple, Inc. |
815,000 | 772,681 | ||||||
Apple, Inc. |
1,080,000 | 1,107,609 | ||||||
Apple, Inc. |
1,130,000 | 1,138,706 | ||||||
Apple, Inc. |
461,000 | 500,879 | ||||||
Diamond 1 Finance Corp./Diamond 2 Finance Corp. |
3,303,000 | 3,631,896 | ||||||
Diamond 1 Finance Corp./Diamond 2 Finance Corp. |
1,240,000 | 1,564,740 | ||||||
Diamond 1 Finance Corp./Diamond 2 Finance Corp. |
825,000 | 1,075,836 | ||||||
9,792,347 | ||||||||
Computers - Integrated Systems — 0.1% |
| |||||||
Diebold, Inc. |
1,079,000 | 1,184,202 | ||||||
Computers - Memory Devices — 0.1% |
| |||||||
Western Digital Corp. |
628,000 | 734,760 | ||||||
16 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Containers - Metal/Glass — 0.1% |
| |||||||
Crown Cork & Seal Co., Inc. |
$ | 483,000 | $ | 554,242 | ||||
Owens-Brockway Glass Container, Inc. |
600,000 | 618,750 | ||||||
1,172,992 | ||||||||
Containers - Paper/Plastic — 0.2% |
| |||||||
Amcor Finance USA, Inc. |
1,287,000 | 1,278,313 | ||||||
Brambles USA, Inc. |
446,000 | 458,126 | ||||||
Multi-Color Corp. |
650,000 | 679,250 | ||||||
2,415,689 | ||||||||
Cosmetics & Toiletries — 0.2% |
| |||||||
Estee Lauder Cos., Inc. |
506,000 | 512,545 | ||||||
Procter & Gamble Co. |
1,463,000 | 1,438,321 | ||||||
1,950,866 | ||||||||
Data Processing/Management — 0.1% |
| |||||||
Fidelity National Information Services, Inc. |
541,000 | 527,836 | ||||||
Fidelity National Information Services, Inc. |
453,000 | 496,167 | ||||||
1,024,003 | ||||||||
Distribution/Wholesale — 0.0% |
| |||||||
WW Grainger, Inc. |
504,000 | 483,003 | ||||||
Diversified Banking Institutions — 3.9% |
| |||||||
Bank of America Corp. |
1,290,000 | 1,255,126 | ||||||
Bank of America Corp. |
3,223,000 | 3,232,547 | ||||||
Bank of America Corp. |
543,000 | 545,017 | ||||||
Bank of America Corp. |
1,043,000 | 1,050,425 | ||||||
Bank of America Corp. |
1,513,000 | 1,542,137 | ||||||
Bank of America Corp. |
1,681,000 | 1,997,601 | ||||||
Bank of America Corp. |
75,000 | 90,314 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Diversified Banking Institutions (continued) |
| |||||||
Citigroup, Inc. |
$ | 183,000 | $ | 182,265 | ||||
Citigroup, Inc. |
2,229,000 | 2,289,598 | ||||||
Citigroup, Inc. |
3,595,000 | 3,681,161 | ||||||
Citigroup, Inc. |
622,000 | 713,575 | ||||||
Goldman Sachs Group, Inc. |
1,007,000 | 1,033,934 | ||||||
Goldman Sachs Group, Inc. |
1,094,000 | 1,077,662 | ||||||
Goldman Sachs Group, Inc. |
1,286,000 | 1,319,905 | ||||||
Goldman Sachs Group, Inc. |
395,000 | 420,532 | ||||||
Goldman Sachs Group, Inc. |
851,000 | 906,940 | ||||||
Goldman Sachs Group, Inc. |
1,627,000 | 1,986,606 | ||||||
Goldman Sachs Group, Inc. |
1,174,000 | 1,465,062 | ||||||
JPMorgan Chase & Co. |
1,856,000 | 1,866,783 | ||||||
JPMorgan Chase & Co. |
1,250,000 | 1,254,208 | ||||||
JPMorgan Chase & Co. |
472,000 | 462,902 | ||||||
JPMorgan Chase & Co. |
1,425,000 | 1,390,492 | ||||||
JPMorgan Chase & Co. |
1,240,000 | 1,270,557 | ||||||
JPMorgan Chase & Co. FRS |
1,129,000 | 1,138,516 | ||||||
Morgan Stanley |
722,000 | 726,144 | ||||||
Morgan Stanley |
663,000 | 672,619 | ||||||
Morgan Stanley |
2,854,000 | 2,961,856 | ||||||
Morgan Stanley |
747,000 | 759,269 |
17 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Diversified Banking Institutions (continued) |
| |||||||
Morgan Stanley |
$ | 3,098,000 | $ | 3,341,051 | ||||
40,634,804 | ||||||||
Diversified Financial Services — 0.2% |
| |||||||
USAA Capital Corp. |
1,623,000 | 1,630,828 | ||||||
Diversified Manufacturing Operations — 0.9% |
| |||||||
General Electric Co. |
2,432,000 | 2,462,052 | ||||||
Illinois Tool Works, Inc. |
1,115,000 | 1,078,910 | ||||||
Ingersoll-Rand Global Holding Co., Ltd. |
1,521,000 | 1,834,988 | ||||||
Parker-Hannifin Corp. |
692,000 | 697,194 | ||||||
Parker-Hannifin Corp. |
545,000 | 552,117 | ||||||
Textron, Inc. |
856,000 | 855,748 | ||||||
Textron, Inc. |
1,001,000 | 1,023,427 | ||||||
Trinity Industries, Inc. |
777,000 | 780,396 | ||||||
9,284,832 | ||||||||
Electric - Distribution — 0.0% |
| |||||||
Entergy Louisiana LLC |
402,000 | 415,803 | ||||||
Electric - Integrated — 1.5% |
| |||||||
AES Corp. |
779,000 | 794,580 | ||||||
Consolidated Edison Co. of New York, Inc. |
583,000 | 596,172 | ||||||
Dominion Resources, Inc. |
412,000 | 417,184 | ||||||
Dominion Resources, Inc. |
1,459,000 | 1,594,843 | ||||||
Duke Energy Corp. |
783,000 | 720,787 | ||||||
Duke Energy Progress LLC |
1,018,000 | 1,035,613 | ||||||
Exelon Generation Co. LLC |
785,000 | 794,773 | ||||||
FirstEnergy Corp. |
866,000 | 1,141,493 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Electric - Integrated (continued) |
| |||||||
Massachusetts Electric Co. |
$ | 2,264,000 | $ | 2,203,495 | ||||
Mirant Mid Atlantic LLC Pass Through Trust Pass-Through Certs. |
705,389 | 629,560 | ||||||
Pacific Gas & Electric Co. |
1,125,000 | 1,129,973 | ||||||
South Carolina Electric & Gas Co. |
606,000 | 661,800 | ||||||
Southern California Edison Co. |
1,496,000 | 1,496,344 | ||||||
Southern Co. |
1,198,000 | 1,197,911 | ||||||
Southern Power Co. |
640,000 | 647,462 | ||||||
Trans-Allegheny Interstate Line Co. |
224,000 | 230,540 | ||||||
15,292,530 | ||||||||
Electric - Transmission — 0.0% |
| |||||||
AEP Transmission Co. LLC |
337,000 | 341,870 | ||||||
Electronic Components - Misc. — 0.1% |
| |||||||
Corning, Inc. |
667,000 | 666,280 | ||||||
Electronic Components - Semiconductors — 0.3% |
| |||||||
Broadcom Corp./Broadcom Cayman Finance, Ltd. |
1,990,000 | 2,003,853 | ||||||
Intel Corp. |
1,180,000 | 1,181,155 | ||||||
3,185,008 | ||||||||
Energy - Alternate Sources — 0.1% |
| |||||||
Pattern Energy Group, Inc. |
278,000 | 285,297 | ||||||
TerraForm Power Operating LLC |
820,000 | 848,700 | ||||||
1,133,997 | ||||||||
Enterprise Software/Service — 0.4% |
| |||||||
Donnelley Financial Solutions, Inc. |
627,000 | 650,513 | ||||||
Oracle Corp. |
1,381,000 | 1,356,763 | ||||||
Oracle Corp. |
1,862,000 | 1,850,519 | ||||||
Oracle Corp. |
309,000 | 308,443 | ||||||
4,166,238 | ||||||||
18 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
zSecurity Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Finance - Auto Loans — 0.2% |
| |||||||
Ally Financial, Inc. |
$ | 1,349,000 | $ | 1,424,881 | ||||
Credit Acceptance Corp. |
746,000 | 769,313 | ||||||
2,194,194 | ||||||||
Finance - Commercial — 0.0% |
| |||||||
Jefferies Finance LLC/JFIN Co-Issuer Corp. |
223,000 | 216,868 | ||||||
Jefferies Finance LLC/JFIN Co-Issuer Corp. |
220,000 | 223,850 | ||||||
440,718 | ||||||||
Finance - Consumer Loans — 0.2% |
| |||||||
Enova International, Inc. |
1,113,000 | 1,140,825 | ||||||
Navient Corp. |
883,000 | 715,230 | ||||||
OneMain Financial Holdings LLC |
349,000 | 365,361 | ||||||
2,221,416 | ||||||||
Finance - Credit Card — 0.3% |
| |||||||
Alliance Data Systems Corp. |
600,000 | 621,000 | ||||||
American Express Credit Corp. |
986,000 | 979,084 | ||||||
American Express Credit Corp. |
1,373,000 | 1,363,444 | ||||||
2,963,528 | ||||||||
Finance - Investment Banker/Broker — 0.1% |
| |||||||
Lehman Brothers Holdings, Inc. |
179,000 | 18 | ||||||
Lehman Brothers Holdings, Inc. |
230,000 | 23 | ||||||
TD Ameritrade Holding Corp. |
794,000 | 807,468 | ||||||
807,509 | ||||||||
Finance - Leasing Companies — 0.1% |
| |||||||
International Lease Finance Corp. |
795,000 | 897,221 | ||||||
Finance - Mortgage Loan/Banker — 0.1% |
| |||||||
Quicken Loans, Inc. |
850,000 | 837,250 | ||||||
Finance - Other Services — 0.3% |
| |||||||
CBOE Holdings, Inc. |
1,082,000 | 1,094,336 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Finance - Other Services (continued) |
| |||||||
National Rural Utilities Cooperative Finance Corp. |
$ | 588,000 | $ | 587,856 | ||||
National Rural Utilities Cooperative Finance Corp. |
1,116,000 | 1,112,233 | ||||||
National Rural Utilities Cooperative Finance Corp. |
531,000 | 528,992 | ||||||
3,323,417 | ||||||||
Firearms & Ammunition — 0.0% |
| |||||||
FGI Operating Co. LLC/FGI Finance, Inc. |
451,000 | 369,820 | ||||||
Food - Flour & Grain — 0.1% |
| |||||||
Post Holdings, Inc. |
570,000 | 580,687 | ||||||
Food - Meat Products — 0.0% |
| |||||||
Smithfield Foods, Inc. |
414,000 | 423,005 | ||||||
Food - Misc./Diversified — 0.2% |
| |||||||
ConAgra Foods, Inc. |
588,000 | 588,998 | ||||||
Kraft Heinz Foods Co. |
1,441,000 | 1,540,194 | ||||||
2,129,192 | ||||||||
Food - Retail — 0.1% |
| |||||||
Albertsons Cos. LLC/Safeway, Inc. |
465,000 | 465,872 | ||||||
Albertsons Cos. LLC/Safeway, Inc. |
402,000 | 426,120 | ||||||
891,992 | ||||||||
Food - Wholesale/Distribution — 0.1% |
| |||||||
C&S Group Enterprises LLC |
841,000 | 830,487 | ||||||
Gambling (Non-Hotel) — 0.2% |
| |||||||
Mohegan Tribal Gaming Authority |
1,170,000 | 1,199,344 | ||||||
Scientific Games International, Inc. |
1,105,000 | 1,172,681 | ||||||
Waterford Gaming LLC/Waterford Gaming Financial Corp. |
5,223 | 67 | ||||||
2,372,092 | ||||||||
Gas - Distribution — 0.1% |
| |||||||
Dominion Gas Holdings LLC |
546,000 | 575,595 | ||||||
Hazardous Waste Disposal — 0.1% |
| |||||||
Clean Harbors, Inc. |
534,000 | 546,015 | ||||||
19 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Home Decoration Products — 0.0% |
| |||||||
Newell Rubbermaid, Inc. |
$ | 394,000 | $ | 449,231 | ||||
Home Furnishings — 0.1% |
| |||||||
Tempur Sealy International, Inc. |
556,000 | 546,270 | ||||||
Hotels/Motels — 0.1% |
| |||||||
Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc. |
529,000 | 558,095 | ||||||
Independent Power Producers — 0.1% |
| |||||||
Calpine Corp. |
690,000 | 683,100 | ||||||
Dynegy, Inc. |
491,000 | 482,407 | ||||||
Dynegy, Inc. |
300,000 | 285,000 | ||||||
1,450,507 | ||||||||
Industrial Gases — 0.0% |
| |||||||
Airgas, Inc. |
372,000 | 382,701 | ||||||
Insurance Brokers — 0.0% |
| |||||||
Marsh & McLennan Cos., Inc. |
232,000 | 236,909 | ||||||
Insurance - Life/Health — 0.7% |
| |||||||
Aflac, Inc. |
712,000 | 683,037 | ||||||
Jackson National Life Global Funding |
1,267,000 | 1,233,379 | ||||||
Pacific LifeCorp |
582,000 | 633,257 | ||||||
Pricoa Global Funding I |
1,429,000 | 1,429,400 | ||||||
Pricoa Global Funding I |
2,643,000 | 2,643,114 | ||||||
Unum Group |
418,000 | 470,892 | ||||||
7,093,079 | ||||||||
Insurance - Multi-line — 0.4% |
| |||||||
Assurant, Inc. |
862,000 | 1,043,975 | ||||||
MetLife, Inc. |
592,000 | 629,621 | ||||||
Metropolitan Life Global Funding I |
2,231,000 | 2,252,146 | ||||||
3,925,742 | ||||||||
Security Description | Principal Amount |
Value (Note 2) |
||||||
Insurance - Mutual — 0.4% |
| |||||||
Massachusetts Mutual Life Insurance Co. |
$ | 740,000 | $ | 708,622 | ||||
MassMutual Global Funding II |
1,625,000 | 1,642,971 | ||||||
MassMutual Global Funding II |
483,000 | 473,460 | ||||||
New York Life Global Funding |
1,136,000 | 1,144,761 | ||||||
3,969,814 | ||||||||
Insurance - Reinsurance — 0.1% |
| |||||||
Berkshire Hathaway, Inc. |
976,000 | 971,205 | ||||||
Internet Connectivity Services — 0.1% |
| |||||||
Cogent Communications Group, Inc. |
371,000 | 385,840 | ||||||
Zayo Group LLC/Zayo Capital, Inc. |
565,000 | 608,787 | ||||||
994,627 | ||||||||
Internet Content - Entertainment — 0.1% |
| |||||||
Netflix, Inc. |
836,000 | 903,925 | ||||||
Investment Management/Advisor Services — 0.0% |
| |||||||
Drawbridge Special Opportunities Fund LP/Drawbridge Special Opportunities Finance |
343,000 | 333,568 | ||||||
Machinery - Construction & Mining — 0.0% |
| |||||||
Terex Corp. |
396,000 | 406,395 | ||||||
Machinery - Farming — 0.3% |
| |||||||
John Deere Capital Corp. |
1,728,000 | 1,728,899 | ||||||
John Deere Capital Corp. |
1,423,000 | 1,434,405 | ||||||
3,163,304 | ||||||||
Machinery - General Industrial — 0.1% |
| |||||||
Roper Technologies, Inc. |
378,000 | 382,083 | ||||||
Wabtec Corp. |
892,000 | 869,150 | ||||||
1,251,233 | ||||||||
Marine Services — 0.1% |
| |||||||
Great Lakes Dredge & Dock Corp. |
764,000 | 762,090 | ||||||
20 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Medical Labs & Testing Services — 0.5% |
| |||||||
Laboratory Corp. of America Holdings |
$ | 312,000 | $ | 313,546 | ||||
Quest Diagnostics, Inc. |
726,000 | 720,050 | ||||||
Roche Holdings, Inc. |
2,037,000 | 2,039,051 | ||||||
Roche Holdings, Inc. |
1,011,000 | 977,872 | ||||||
Roche Holdings, Inc. |
1,595,000 | 1,610,015 | ||||||
5,660,534 | ||||||||
Medical Products — 0.0% |
| |||||||
Becton Dickinson and Co. |
451,000 | 461,885 | ||||||
Medical - Biomedical/Gene — 0.3% |
| |||||||
Amgen, Inc. |
494,000 | 484,410 | ||||||
Baxalta, Inc. |
950,000 | 965,832 | ||||||
Celgene Corp. |
1,057,000 | 1,065,903 | ||||||
Gilead Sciences, Inc. |
382,000 | 368,106 | ||||||
2,884,251 | ||||||||
Medical - Drugs — 0.3% |
| |||||||
Forest Laboratories LLC |
1,139,000 | 1,231,810 | ||||||
Johnson & Johnson |
1,736,000 | 1,731,591 | ||||||
2,963,401 | ||||||||
Medical - HMO — 0.3% |
| |||||||
Centene Corp. |
570,000 | 586,387 | ||||||
UnitedHealth Group, Inc. |
944,000 | 944,696 | ||||||
UnitedHealth Group, Inc. |
971,000 | 963,335 | ||||||
UnitedHealth Group, Inc. |
663,000 | 689,205 | ||||||
3,183,623 | ||||||||
Medical - Hospitals — 0.3% |
| |||||||
CHS/Community Health Systems, Inc. |
1,070,000 | 938,925 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Medical - Hospitals (continued) |
| |||||||
HCA, Inc. |
$ | 513,000 | $ | 541,856 | ||||
HCA, Inc. |
95,000 | 99,394 | ||||||
HCA, Inc. |
700,000 | 682,500 | ||||||
IASIS Healthcare LLC/IASIS Capital Corp. |
453,000 | 442,807 | ||||||
RegionalCare Hospital Partners Holdings, Inc. |
755,000 | 811,625 | ||||||
3,517,107 | ||||||||
Metal Processors & Fabrication — 0.1% |
| |||||||
Grinding Media, Inc./MC Grinding Media Canada, Inc. |
375,000 | 401,250 | ||||||
Novelis Corp. |
620,000 | 637,825 | ||||||
Novelis Corp. |
389,000 | 412,340 | ||||||
1,451,415 | ||||||||
Metal - Aluminum — 0.0% |
| |||||||
Kaiser Aluminum Corp. |
293,000 | 307,650 | ||||||
Metal - Iron — 0.0% |
| |||||||
Cliffs Natural Resources, Inc. |
380,000 | 372,780 | ||||||
Multimedia — 0.4% |
| |||||||
Time Warner, Inc. |
773,000 | 764,700 | ||||||
Time Warner, Inc. |
1,093,000 | 1,084,878 | ||||||
Viacom, Inc. |
387,000 | 379,998 | ||||||
Viacom, Inc. |
531,000 | 563,904 | ||||||
Walt Disney Co. |
920,000 | 922,097 | ||||||
Walt Disney Co. |
500,000 | 501,915 | ||||||
4,217,492 | ||||||||
Networking Products — 0.4% |
| |||||||
Cisco Systems, Inc. |
1,262,000 | 1,264,681 | ||||||
Cisco Systems, Inc. |
1,222,000 | 1,236,037 | ||||||
Cisco Systems, Inc. |
2,079,000 | 2,083,247 | ||||||
4,583,965 | ||||||||
21 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Office Automation & Equipment — 0.1% |
| |||||||
CDW LLC/CDW Finance Corp. |
$ | 565,000 | $ | 573,125 | ||||
Pitney Bowes, Inc. |
122,000 | 119,723 | ||||||
692,848 | ||||||||
Oil Companies - Exploration & Production — 1.5% |
| |||||||
Anadarko Petroleum Corp. |
2,339,000 | 2,833,762 | ||||||
Carrizo Oil & Gas, Inc. |
500,000 | 506,250 | ||||||
Chesapeake Energy Corp. |
660,000 | 655,050 | ||||||
Concho Resources, Inc. |
1,132,000 | 1,148,980 | ||||||
Denbury Resources, Inc. |
488,000 | 402,600 | ||||||
Denbury Resources, Inc. |
1,050,000 | 1,131,375 | ||||||
EP Energy LLC/Everest Acquisition Finance, Inc. |
890,000 | 943,400 | ||||||
Hess Corp. |
695,000 | 695,201 | ||||||
Hess Corp. |
1,336,000 | 1,370,493 | ||||||
Hilcorp Energy I LP/Hilcorp Finance Co. |
436,000 | 417,470 | ||||||
Hilcorp Energy I LP/Hilcorp Finance Co. |
35,000 | 34,737 | ||||||
Marathon Oil Corp. |
415,000 | 416,764 | ||||||
Newfield Exploration Co. |
509,000 | 530,632 | ||||||
Noble Energy, Inc. |
1,042,000 | 1,065,236 | ||||||
Noble Energy, Inc. |
905,000 | 941,488 | ||||||
Occidental Petroleum Corp. |
336,000 | 344,113 | ||||||
Rex Energy Corp. |
523,900 | 314,340 | ||||||
RSP Permian, Inc. |
600,000 | 615,000 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Oil Companies - Exploration & Production (continued) |
| |||||||
Sanchez Energy Corp. |
$ | 391,000 | $ | 375,360 | ||||
SM Energy Co. |
281,000 | 265,896 | ||||||
SM Energy Co. |
182,000 | 182,455 | ||||||
WPX Energy, Inc. |
625,000 | 673,437 | ||||||
15,864,039 | ||||||||
Oil Companies - Integrated — 0.4% |
| |||||||
Chevron Corp. |
1,193,000 | 1,193,063 | ||||||
Chevron Corp. |
686,000 | 686,683 | ||||||
Chevron Corp. |
879,000 | 879,000 | ||||||
Chevron Corp. |
1,200,000 | 1,175,799 | ||||||
Exxon Mobil Corp. |
649,000 | 649,227 | ||||||
4,583,772 | ||||||||
Oil Field Machinery & Equipment — 0.0% |
| |||||||
Forum Energy Technologies, Inc. |
410,000 | 412,050 | ||||||
Oil Refining & Marketing — 0.1% |
| |||||||
PBF Holding Co. LLC/PBF Finance Corp. |
790,000 | 793,950 | ||||||
Oil - Field Services — 0.2% |
| |||||||
Bristow Group, Inc. |
1,030,000 | 893,525 | ||||||
SESI LLC |
675,000 | 693,562 | ||||||
1,587,087 | ||||||||
Paper & Related Products — 0.8% |
| |||||||
Domtar Corp. |
1,445,000 | 1,546,089 | ||||||
Georgia-Pacific LLC |
2,262,000 | 2,313,130 | ||||||
Georgia-Pacific LLC |
2,930,000 | 3,043,042 | ||||||
Georgia-Pacific LLC |
737,000 | 810,029 |
22 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Paper & Related Products (continued) |
| |||||||
International Paper Co. |
$ | 490,000 | $ | 473,080 | ||||
PH Glatfelter Co. |
540,000 | 550,800 | ||||||
8,736,170 | ||||||||
Pharmacy Services — 0.1% |
| |||||||
Express Scripts Holding Co. |
510,000 | 495,603 | ||||||
Express Scripts Holding Co. |
732,000 | 712,691 | ||||||
1,208,294 | ||||||||
Pipelines — 1.9% |
| |||||||
Antero Midstream Partners LP/Antero Midstream Finance Corp. |
583,000 | 591,745 | ||||||
Cheniere Corpus Christi Holdings LLC |
231,000 | 258,720 | ||||||
Colorado Interstate Gas Co. LLC/Colorado Interstate Issuing Corp. |
960,000 | 938,017 | ||||||
Columbia Pipeline Group, Inc. |
245,000 | 246,337 | ||||||
Energy Transfer Partners LP |
301,000 | 292,439 | ||||||
Energy Transfer Partners LP |
111,000 | 119,363 | ||||||
Energy Transfer Partners LP |
1,894,000 | 2,169,005 | ||||||
EnLink Midstream Partners LP |
423,000 | 430,265 | ||||||
EnLink Midstream Partners LP |
910,000 | 954,040 | ||||||
EnLink Midstream Partners LP |
1,043,000 | 994,296 | ||||||
Enterprise Products Operating LLC |
578,000 | 594,965 | ||||||
Enterprise Products Operating LLC |
358,000 | 370,935 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. |
314,000 | 313,215 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. |
250,000 | 253,750 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. |
500,000 | 506,250 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Pipelines (continued) |
| |||||||
Holly Energy Partners LP/Holly Energy Finance Corp. |
$ | 672,000 | $ | 705,600 | ||||
Kinder Morgan Energy Partners LP |
787,000 | 783,894 | ||||||
Kinder Morgan Energy Partners LP |
479,000 | 450,170 | ||||||
Kinder Morgan Energy Partners LP |
473,000 | 483,876 | ||||||
Kinder Morgan, Inc. |
647,000 | 695,894 | ||||||
Kinder Morgan, Inc. |
605,000 | 638,413 | ||||||
MPLX LP |
742,000 | 746,676 | ||||||
MPLX LP |
405,000 | 412,227 | ||||||
Phillips 66 Partners LP |
452,000 | 444,684 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. |
432,000 | 421,815 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. |
518,000 | 523,524 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. |
663,000 | 681,752 | ||||||
Rose Rock Midstream LP/Rose Rock Finance Corp. |
487,000 | 478,477 | ||||||
Spectra Energy Partners LP |
531,000 | 512,150 | ||||||
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. |
540,000 | 546,750 | ||||||
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. |
605,000 | 611,050 | ||||||
Tesoro Logistics LP/Tesoro Logistics Finance Corp. |
579,000 | 596,804 | ||||||
Western Gas Partners LP |
966,000 | 1,010,458 | ||||||
19,777,556 | ||||||||
Power Converter/Supply Equipment — 0.1% |
| |||||||
Hubbell, Inc. |
864,000 | 863,386 | ||||||
23 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Printing - Commercial — 0.1% |
| |||||||
Quad/Graphics, Inc. |
$ | 624,000 | $ | 622,440 | ||||
Radio — 0.0% |
||||||||
Sirius XM Radio, Inc. |
384,000 | 391,680 | ||||||
Real Estate Investment Trusts — 0.5% |
||||||||
American Tower Corp. |
1,140,000 | 1,064,824 | ||||||
American Tower Corp. |
736,000 | 703,665 | ||||||
Columbia Property Trust Operating Partnership LP |
365,000 | 353,457 | ||||||
Corrections Corp. of America |
204,000 | 208,080 | ||||||
CTR Partnership LP/CareTrust Capital Corp. |
497,000 | 510,667 | ||||||
ESH Hospitality, Inc. |
424,000 | 427,710 | ||||||
Iron Mountain US Holdings, Inc. |
107,000 | 106,465 | ||||||
Realty Income Corp. |
326,000 | 309,996 | ||||||
Simon Property Group LP |
687,000 | 686,062 | ||||||
Starwood Property Trust, Inc. |
804,000 | 835,155 | ||||||
5,206,081 | ||||||||
Real Estate Management/Services — 0.1% |
||||||||
Kennedy-Wilson, Inc. |
1,000,000 | 1,042,500 | ||||||
Realogy Group LLC/Realogy Co-Issuer Corp. |
455,000 | 448,175 | ||||||
1,490,675 | ||||||||
Rental Auto/Equipment — 0.3% |
||||||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. |
597,000 | 571,627 | ||||||
ERAC USA Finance LLC |
1,601,000 | 1,494,388 | ||||||
Hertz Corp. |
623,000 | 562,258 | ||||||
2,628,273 | ||||||||
Retail - Appliances — 0.1% |
||||||||
Conn’s, Inc. |
1,131,000 | 986,797 | ||||||
Security Description | Principal Amount |
Value (Note 2) |
||||||
Retail - Building Products — 0.1% |
||||||||
Home Depot, Inc. |
$ | 88,000 | $ | 87,761 | ||||
Home Depot, Inc. |
524,000 | 467,946 | ||||||
555,707 | ||||||||
Retail - Discount — 0.1% |
||||||||
Costco Wholesale Corp. |
1,308,000 | 1,302,534 | ||||||
Retail - Drug Store — 0.1% |
||||||||
CVS Pass-Through Trust |
571,189 | 600,540 | ||||||
CVS Pass-Through Trust |
291,966 | 330,991 | ||||||
CVS Pass-Through Trust |
507,293 | 586,099 | ||||||
1,517,630 | ||||||||
Retail - Restaurants — 0.1% |
||||||||
Brinker International, Inc. |
580,000 | 569,850 | ||||||
McDonald’s Corp. |
182,000 | 193,217 | ||||||
763,067 | ||||||||
Satellite Telecom — 0.1% |
||||||||
Hughes Satellite Systems Corp. |
510,000 | 565,463 | ||||||
Savings & Loans/Thrifts — 0.9% |
||||||||
Astoria Financial Corp. |
1,600,000 | 1,610,449 | ||||||
First Niagara Financial Group, Inc. |
4,035,000 | 4,553,401 | ||||||
First Niagara Financial Group, Inc. |
2,210,000 | 2,609,665 | ||||||
8,773,515 | ||||||||
Soap & Cleaning Preparation — 0.1% |
||||||||
Kronos Acquisition Holdings, Inc. |
560,000 | 571,900 | ||||||
Steel - Producers — 0.1% |
||||||||
AK Steel Corp. |
650,000 | 710,125 | ||||||
Telecom Services — 0.0% |
||||||||
Embarq Corp. |
450,000 | 451,476 | ||||||
24 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Telecommunication Equipment — 0.1% |
||||||||
Plantronics, Inc. |
$ | 593,000 | $ | 603,680 | ||||
Telephone - Integrated — 1.3% |
||||||||
AT&T, Inc. |
2,285,000 | 2,270,401 | ||||||
AT&T, Inc. |
1,230,000 | 1,091,090 | ||||||
AT&T, Inc. |
1,587,000 | 1,505,232 | ||||||
AT&T, Inc. |
1,003,000 | 937,930 | ||||||
AT&T, Inc. |
815,000 | 840,812 | ||||||
AT&T, Inc. |
572,000 | 614,363 | ||||||
Sprint Capital Corp. |
1,010,000 | 1,212,000 | ||||||
Verizon Communications, Inc. |
1,181,000 | 1,191,982 | ||||||
Verizon Communications, Inc. |
489,000 | 469,442 | ||||||
Verizon Communications, Inc. |
2,947,000 | 2,682,949 | ||||||
Verizon Communications, Inc. |
106,000 | 103,376 | ||||||
12,919,577 | ||||||||
Television — 0.0% |
||||||||
Belo Corp. |
178,000 | 193,575 | ||||||
Tools - Hand Held — 0.1% |
||||||||
Snap-on, Inc. |
521,000 | 527,881 | ||||||
Transport - Equipment & Leasing — 0.1% |
||||||||
GATX Corp. |
479,000 | 457,749 | ||||||
GATX Corp. |
765,000 | 764,389 | ||||||
1,222,138 | ||||||||
Transport - Rail — 0.1% |
||||||||
Burlington Northern Santa Fe LLC |
475,000 | 468,204 | ||||||
CSX Corp. |
540,000 | 496,948 | ||||||
965,152 | ||||||||
Security Description | Principal Amount |
Value (Note 2) |
||||||
Transport - Services — 0.1% |
||||||||
FedEx Corp. |
$ | 542,000 | $ | 539,870 | ||||
Travel Services — 0.1% |
||||||||
Sabre GLBL, Inc. |
534,000 | 543,345 | ||||||
Trucking/Leasing — 0.0% |
||||||||
Penske Truck Leasing Co. LP/PTL Finance Corp. |
420,000 | 427,865 | ||||||
Wire & Cable Products — 0.0% |
||||||||
General Cable Corp. |
482,000 | 472,360 | ||||||
Total U.S. Corporate Bonds & Notes |
||||||||
(cost $367,292,004) |
374,774,559 | |||||||
FOREIGN CORPORATE BONDS & NOTES — 8.1% |
||||||||
Agricultural Chemicals — 0.0% |
||||||||
Potash Corp. of Saskatchewan, Inc. |
492,000 | 500,567 | ||||||
Auto - Cars/Light Trucks — 0.0% |
||||||||
Volkswagen International Finance NV |
323,000 | 323,184 | ||||||
Banks - Commercial — 1.6% |
||||||||
Australia & New Zealand Banking Group, Ltd. |
728,000 | 721,493 | ||||||
Bank of Montreal |
597,000 | 598,486 | ||||||
Credit Suisse AG |
443,000 | 442,948 | ||||||
Credit Suisse AG |
611,000 | 617,741 | ||||||
DBS Group Holdings, Ltd. |
1,529,000 | 1,535,174 | ||||||
Dexia Credit Local SA |
1,161,000 | 1,157,915 | ||||||
Kookmin Bank |
1,906,000 | 1,905,399 | ||||||
Mizuho Bank, Ltd. |
533,000 | 534,132 | ||||||
Mizuho Bank, Ltd. |
591,000 | 594,366 | ||||||
National Bank of Canada |
2,515,000 | 2,515,802 | ||||||
National Bank of Canada |
887,000 | 890,905 | ||||||
Rabobank Nederland NY |
377,000 | 377,703 |
25 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
||||||||
Banks - Commercial (continued) |
||||||||
Sumitomo Mitsui Banking Corp. |
$ | 2,491,000 | $ | 2,490,071 | ||||
Toronto-Dominion Bank |
1,383,000 | 1,349,754 | ||||||
Westpac Banking Corp. VRS |
695,000 | 701,674 | ||||||
16,433,563 | ||||||||
Beverages - Non-alcoholic — 0.2% |
||||||||
Coca-Cola Femsa SAB de CV |
1,914,000 | 1,930,804 | ||||||
Beverages - Wine/Spirits — 0.1% |
||||||||
Diageo Capital PLC |
1,303,000 | 1,339,358 | ||||||
Building Products - Air & Heating — 0.0% |
||||||||
Johnson Controls International PLC |
311,000 | 320,000 | ||||||
Building Societies — 0.1% |
||||||||
Nationwide Building Society |
565,000 | 544,176 | ||||||
Building - Residential/Commercial — 0.1% |
||||||||
Mattamy Group Corp. |
629,000 | 646,297 | ||||||
Mattamy Group Corp. |
330,000 | 344,850 | ||||||
991,147 | ||||||||
Cable/Satellite TV — 0.4% |
||||||||
Altice Financing SA |
1,060,000 | 1,138,175 | ||||||
Altice Luxembourg SA |
1,045,000 | 1,112,925 | ||||||
Numericable-SFR SA |
1,643,000 | 1,702,559 | ||||||
Ziggo Secured Finance BV |
575,000 | 582,187 | ||||||
4,535,846 | ||||||||
Chemicals - Diversified — 0.1% |
||||||||
LYB International Finance II BV |
1,074,000 | 1,068,897 | ||||||
NOVA Chemicals Corp. |
425,000 | 430,313 | ||||||
1,499,210 | ||||||||
Computers - Memory Devices — 0.1% |
||||||||
Seagate HDD Cayman |
1,011,000 | 999,977 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Computers - Memory Devices (continued) |
||||||||
Seagate HDD Cayman |
$ | 580,000 | $ | 561,136 | ||||
1,561,113 | ||||||||
Cruise Lines — 0.2% |
||||||||
NCL Corp., Ltd. |
550,000 | 561,000 | ||||||
Royal Caribbean Cruises, Ltd. |
232,000 | 259,770 | ||||||
Royal Caribbean Cruises, Ltd. |
433,000 | 533,673 | ||||||
Silversea Cruise Finance, Ltd. |
570,000 | 594,225 | ||||||
1,948,668 | ||||||||
Diversified Banking Institutions — 1.2% |
||||||||
Barclays PLC |
767,000 | 780,673 | ||||||
BNP Paribas SA |
1,576,000 | 1,566,087 | ||||||
Credit Agricole SA |
1,129,000 | 1,117,089 | ||||||
Credit Suisse Group AG |
2,346,000 | 2,354,474 | ||||||
Credit Suisse Group Funding Guernsey, Ltd. |
539,000 | 557,755 | ||||||
HSBC Holdings PLC |
1,162,000 | 1,146,074 | ||||||
HSBC Holdings PLC |
391,000 | 396,736 | ||||||
HSBC Holdings PLC |
543,000 | 549,659 | ||||||
Lloyds Banking Group PLC |
1,168,000 | 1,189,366 | ||||||
Mitsubishi UFJ Financial Group, Inc. |
1,135,000 | 1,147,232 | ||||||
Mizuho Financial Group, Inc. |
935,000 | 914,082 | ||||||
Royal Bank of Scotland Group PLC |
454,000 | 448,387 | ||||||
UBS Group Funding Jersey, Ltd. |
269,000 | 274,229 | ||||||
12,441,843 | ||||||||
Diversified Financial Services — 0.2% |
||||||||
GE Capital International Funding Co. ULC |
2,435,000 | 2,608,094 | ||||||
26 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
||||||||
Diversified Manufacturing Operations — 0.0% |
||||||||
Ingersoll-Rand Luxembourg Finance SA |
$ | 452,000 | $ | 469,550 | ||||
Electric - Generation — 0.2% |
||||||||
Electricite de France SA |
1,442,000 | 1,434,852 | ||||||
Electricite de France SA |
339,000 | 342,580 | ||||||
1,777,432 | ||||||||
Finance - Leasing Companies — 0.2% |
||||||||
Aircastle, Ltd. |
670,000 | 706,012 | ||||||
Aircastle, Ltd. |
323,000 | 352,070 | ||||||
Fly Leasing, Ltd. |
600,000 | 624,000 | ||||||
1,682,082 | ||||||||
Gold Mining — 0.1% |
||||||||
Goldcorp, Inc. |
501,000 | 543,708 | ||||||
Hazardous Waste Disposal — 0.1% |
||||||||
Tervita Escrow Corp. |
660,000 | 689,700 | ||||||
Insurance - Life/Health — 0.2% |
||||||||
AIA Group, Ltd. |
495,000 | 503,679 | ||||||
Manulife Financial Corp. VRS |
1,214,000 | 1,221,129 | ||||||
1,724,808 | ||||||||
Insurance - Multi-line — 0.2% |
||||||||
XLIT, Ltd. |
593,000 | 600,686 | ||||||
XLIT, Ltd. |
1,026,000 | 1,027,062 | ||||||
1,627,748 | ||||||||
Machinery - General Industrial — 0.1% |
| |||||||
ATS Automation Tooling Systems, Inc. |
637,000 | 665,665 | ||||||
Medical - Drugs — 0.1% |
| |||||||
Teva Pharmaceutical Finance Netherlands III BV |
969,000 | 919,643 | ||||||
Medical - Generic Drugs — 0.1% |
| |||||||
Actavis Funding SCS |
1,172,000 | 1,193,813 | ||||||
Security Description | Principal Amount |
Value (Note 2) |
||||||
Metal - Copper — 0.2% |
| |||||||
First Quantum Minerals, Ltd. |
$ | 969,000 | $ | 1,001,704 | ||||
Hudbay Minerals, Inc. |
750,000 | 819,375 | ||||||
1,821,079 | ||||||||
Metal - Iron — 0.1% |
| |||||||
Vale Overseas, Ltd. |
626,000 | 690,947 | ||||||
Oil Companies - Exploration & Production — 0.2% |
| |||||||
Anadarko Finance Co. |
681,000 | 874,260 | ||||||
MEG Energy Corp. |
902,000 | 800,525 | ||||||
MEG Energy Corp. |
471,000 | 460,403 | ||||||
2,135,188 | ||||||||
Oil Companies - Integrated — 0.8% |
| |||||||
BP Capital Markets PLC |
1,793,000 | 1,794,677 | ||||||
BP Capital Markets PLC |
781,000 | 777,904 | ||||||
BP Capital Markets PLC |
588,000 | 601,372 | ||||||
Petroleos Mexicanos |
85,000 | 73,100 | ||||||
Petroleos Mexicanos |
1,960,000 | 1,940,400 | ||||||
Shell International Finance BV |
888,000 | 888,316 | ||||||
Shell International Finance BV |
902,000 | 904,896 | ||||||
Shell International Finance BV |
1,024,000 | 1,027,638 | ||||||
8,008,303 | ||||||||
Oil - Field Services — 0.0% |
| |||||||
Trinidad Drilling, Ltd. |
391,000 | 402,730 | ||||||
Paper & Related Products — 0.1% |
| |||||||
Cascades, Inc. |
650,000 | 659,750 | ||||||
Cascades, Inc. |
350,000 | 357,000 | ||||||
1,016,750 | ||||||||
27 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Pipelines — 0.1% |
| |||||||
Enbridge, Inc. |
$ | 663,000 | $ | 716,175 | ||||
Printing - Commercial — 0.1% |
| |||||||
Cimpress NV |
1,090,000 | 1,128,150 | ||||||
Satellite Telecom — 0.2% |
| |||||||
Intelsat Jackson Holdings SA |
1,590,000 | 1,307,775 | ||||||
Telesat Canada/Telesat LLC |
1,067,000 | 1,165,697 | ||||||
2,473,472 | ||||||||
Security Services — 0.1% |
| |||||||
Garda World Security Corp. |
701,000 | 671,208 | ||||||
Semiconductor Components-Integrated Circuits — 0.0% |
| |||||||
NXP BV/NXP Funding LLC |
395,000 | 420,675 | ||||||
Semiconductor Equipment — 0.1% |
| |||||||
Sensata Technologies BV |
545,000 | 553,175 | ||||||
Steel - Producers — 0.1% |
| |||||||
ArcelorMittal |
785,000 | 882,144 | ||||||
SupraNational Banks — 0.1% |
| |||||||
North American Development Bank |
1,002,000 | 1,015,335 | ||||||
Telephone - Integrated — 0.2% |
| |||||||
Deutsche Telekom International Finance BV |
1,124,000 | 1,075,760 | ||||||
Telecom Italia Capital SA |
1,327,000 | 1,467,994 | ||||||
2,543,754 | ||||||||
Transport - Rail — 0.1% |
| |||||||
Canadian Pacific Railway Co. |
623,000 | 752,487 | ||||||
Total Foreign Corporate Bonds & Notes |
||||||||
(cost $82,338,456) |
83,503,294 | |||||||
FOREIGN GOVERNMENT OBLIGATIONS — 0.3% |
| |||||||
Electric - Distribution — 0.1% |
| |||||||
Hydro-Quebec |
1,036,000 | 1,036,336 | ||||||
Sovereign — 0.2% |
| |||||||
United Mexican States |
1,012,000 | 1,041,348 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Sovereign (continued) |
| |||||||
United Mexican States |
$ | 1,128,000 | $ | 1,007,868 | ||||
2,049,216 | ||||||||
Total Foreign Government Obligations |
||||||||
(cost $3,170,710) |
3,085,552 | |||||||
U.S. GOVERNMENT AGENCIES — 34.7% |
| |||||||
Federal Home Loan Mtg. Corp. — 14.8% |
| |||||||
2.50% due 05/01/2023 |
548,814 | 558,972 | ||||||
2.50% due 01/01/2028 |
894,514 | 907,614 | ||||||
2.50% due 04/01/2028 |
1,884,563 | 1,912,152 | ||||||
2.50% due 03/01/2031 |
1,056,874 | 1,060,663 | ||||||
2.77% due 02/01/2037 FRS |
339,434 | 352,933 | ||||||
3.00% due 11/01/2026 |
4,314,626 | 4,443,310 | ||||||
3.00% due 08/01/2027 |
361,162 | 372,146 | ||||||
3.00% due 10/01/2042 |
1,748,572 | 1,750,044 | ||||||
3.00% due 11/01/2042 |
1,381,585 | 1,380,265 | ||||||
3.00% due 02/01/2043 |
2,128,299 | 2,118,333 | ||||||
3.00% due 04/01/2043 |
1,922,694 | 1,920,976 | ||||||
3.00% due 05/01/2043 |
705,239 | 705,832 | ||||||
3.00% due 08/01/2043 |
7,185,638 | 7,165,452 | ||||||
3.00% due 07/01/2045 |
12,427,323 | 12,346,115 | ||||||
3.00% due 10/01/2045 |
7,372,491 | 7,324,312 | ||||||
3.00% due 12/01/2045 |
2,182,064 | 2,167,804 | ||||||
3.00% due 05/01/2046 |
5,700,568 | 5,663,297 | ||||||
3.00% due 08/01/2046 |
3,867,680 | 3,842,392 | ||||||
3.00% due March 30 TBA |
8,385,000 | 8,321,648 | ||||||
3.12% due 11/01/2037 FRS |
2,346,811 | 2,499,684 | ||||||
3.50% due 03/01/2042 |
4,846,843 | 4,995,638 | ||||||
3.50% due 04/01/2042 |
1,995,604 | 2,056,993 | ||||||
3.50% due 08/01/2042 |
1,753,424 | 1,807,650 | ||||||
3.50% due 09/01/2043 |
1,866,814 | 1,924,552 | ||||||
3.50% due 03/01/2045 |
1,496,337 | 1,535,283 | ||||||
3.50% due 07/01/2045 |
10,258,446 | 10,537,145 | ||||||
3.50% due 08/01/2045 |
2,924,079 | 3,010,437 | ||||||
3.50% due 11/01/2045 |
5,478,142 | 5,620,725 | ||||||
3.50% due 01/01/2046 |
3,344,173 | 3,431,214 | ||||||
4.00% due 03/01/2023 |
419,929 | 431,459 | ||||||
4.00% due 09/01/2040 |
1,813,589 | 1,914,827 | ||||||
4.00% due 10/01/2043 |
5,949,073 | 6,260,401 | ||||||
4.00% due 07/01/2044 |
128,661 | 135,384 | ||||||
4.00% due 10/01/2045 |
4,860,382 | 5,113,385 | ||||||
4.00% due 11/01/2045 |
11,030,044 | 11,604,204 | ||||||
4.00% due 01/01/2046 |
988,693 | 1,046,428 | ||||||
4.50% due 11/01/2018 |
11,972 | 12,265 | ||||||
4.50% due 02/01/2019 |
17,669 | 18,120 | ||||||
4.50% due 12/01/2039 |
726,946 | 783,827 | ||||||
4.50% due 07/01/2044 |
1,734,879 | 1,871,931 | ||||||
4.50% due 09/01/2044 |
7,677,045 | 8,249,118 | ||||||
5.00% due 10/01/2033 |
2,047 | 2,261 | ||||||
5.00% due 07/01/2040 |
919,943 | 1,009,636 | ||||||
5.00% due 11/01/2043 |
4,105,177 | 4,514,467 | ||||||
5.50% due 11/01/2018 |
7,305 | 7,440 | ||||||
5.50% due 11/01/2032 |
12,464 | 13,979 | ||||||
5.50% due 07/01/2034 |
32,386 | 36,454 | ||||||
5.50% due 02/01/2035 |
52,890 | 58,658 | ||||||
5.50% due 07/01/2035 |
1,417 | 1,594 | ||||||
5.50% due 01/01/2036 |
246,686 | 276,468 | ||||||
5.50% due 05/01/2037 |
45,516 | 50,594 | ||||||
6.00% due 07/01/2035 |
89,301 | 101,072 | ||||||
6.00% due 03/01/2040 |
225,874 | 256,479 | ||||||
6.50% due 12/01/2032 |
38,625 | 43,410 | ||||||
6.50% due 02/01/2036 |
17,616 | 20,541 | ||||||
6.50% due 09/01/2036 |
426 | 489 | ||||||
6.50% due 05/01/2037 |
61,410 | 69,019 |
28 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. GOVERNMENT AGENCIES (continued) |
| |||||||
Federal Home Loan Mtg. Corp. (continued) |
| |||||||
Federal Home Loan Mtg. Corp. REMIC FRS |
$ | 1,515,905 | $ | 220,794 | ||||
Federal Home Loan Mtg. Corp. Structured Agency Credit Risk |
||||||||
Series 2014-DN1, Class M2 |
||||||||
2.98% due 02/25/2024 FRS(2) |
1,580,000 | 1,622,161 | ||||||
Series 2014-HQ2, Class M2 |
||||||||
2.98% due 09/25/2024 FRS(2) |
2,790,000 | 2,852,890 | ||||||
Series 2015-HQ1, Class M2 |
||||||||
2.98% due 03/25/2025 FRS(2) |
18,557 | 18,736 | ||||||
Series 2014-HQ3, Class M2 |
||||||||
3.43% due 10/25/2024 FRS(2) |
77,734 | 78,364 | ||||||
Series 2015-HQA1, Class M2 |
||||||||
3.43% due 03/25/2028 FRS(2) |
1,069,843 | 1,095,754 | ||||||
Series 2016-HQA1, Class M2 |
||||||||
3.53% due 09/25/2028 FRS(2) |
1,314,000 | 1,368,369 | ||||||
152,894,559 | ||||||||
Federal National Mtg. Assoc. — 18.1% |
| |||||||
2.50% due 09/01/2027 |
569,810 | 577,776 | ||||||
2.50% due 02/01/2028 |
1,836,067 | 1,862,315 | ||||||
2.50% due 04/01/2028 |
475,160 | 481,816 | ||||||
2.50% due 02/01/2031 |
2,969,927 | 2,980,472 | ||||||
2.50% due 05/01/2031 |
5,430,387 | 5,449,667 | ||||||
2.50% due March 15 TBA |
2,647,000 | 2,653,967 | ||||||
2.77% due 10/01/2035 FRS |
2,039,903 | 2,155,926 | ||||||
2.79% due 09/01/2035 FRS |
1,769,794 | 1,861,939 | ||||||
2.80% due 11/01/2036 FRS |
853,416 | 906,287 | ||||||
2.92% due 05/01/2037 FRS |
540,571 | 571,283 | ||||||
3.00% due 04/01/2027 |
1,383,763 | 1,428,145 | ||||||
3.00% due 10/01/2027 |
250,811 | 258,884 | ||||||
3.00% due 11/01/2027 |
1,878,734 | 1,939,371 | ||||||
3.00% due 01/01/2028 |
1,869,969 | 1,929,990 | ||||||
3.00% due 10/01/2030 |
3,519,489 | 3,622,834 | ||||||
3.00% due 07/01/2039 FRS |
1,439,038 | 1,523,868 | ||||||
3.00% due 03/01/2042 |
3,304,579 | 3,300,059 | ||||||
3.00% due 12/01/2042 |
3,349,031 | 3,340,786 | ||||||
3.00% due 05/01/2043 |
3,781,924 | 3,767,373 | ||||||
3.00% due 06/01/2045 |
1,832,747 | 1,831,944 | ||||||
3.00% due 05/01/2046 |
4,310,438 | 4,286,263 | ||||||
3.00% due 09/01/2046 |
1,919,189 | 1,908,425 | ||||||
3.00% due March 15 TBA |
72,000 | 74,036 | ||||||
3.09% due 10/01/2040 FRS |
563,604 | 596,259 | ||||||
3.19% due 08/01/2035 FRS |
1,200,128 | 1,283,954 | ||||||
3.27% due 10/01/2040 FRS |
1,108,050 | 1,175,393 | ||||||
3.28% due 05/01/2040 FRS |
2,030,351 | 2,146,460 | ||||||
3.50% due 08/01/2026 |
1,561,905 | 1,631,153 | ||||||
3.50% due 09/01/2026 |
1,428,684 | 1,493,170 | ||||||
3.50% due 08/01/2027 |
216,497 | 225,925 | ||||||
3.50% due 10/01/2028 |
3,176,982 | 3,320,955 | ||||||
3.50% due 12/01/2041 |
489,627 | 504,730 | ||||||
3.50% due 03/01/2042 |
724,091 | 746,251 | ||||||
3.50% due 08/01/2042 |
4,577,912 | 4,717,201 | ||||||
3.50% due 09/01/2042 |
650,453 | 670,193 | ||||||
3.50% due 02/01/2043 |
3,277,286 | 3,391,138 | ||||||
3.50% due 04/01/2045 |
716,378 | 736,181 | ||||||
3.50% due 07/01/2045 |
2,232,819 | 2,291,385 | ||||||
3.50% due 08/01/2045 |
2,903,212 | 2,983,416 | ||||||
3.50% due 09/01/2045 |
666,121 | 683,593 | ||||||
3.50% due 10/01/2045 |
3,497,403 | 3,596,230 | ||||||
3.50% due 11/01/2045 |
5,921,456 | 6,076,774 | ||||||
3.50% due 12/01/2045 |
11,713,704 | 12,020,951 | ||||||
3.50% due 02/01/2046 |
2,639,959 | 2,709,204 | ||||||
3.50% due 03/01/2046 |
12,238,426 | 12,559,435 | ||||||
3.50% due 07/01/2046 |
6,698,087 | 6,892,792 |
Security Description | Principal Amount |
Value (Note 2) |
||||||
Federal National Mtg. Assoc. (continued) |
| |||||||
3.50% due March 15 TBA |
$ | 1,968,000 | $ | 2,052,304 | ||||
4.00% due 11/01/2025 |
127,788 | 134,273 | ||||||
4.00% due 06/01/2039 |
540,286 | 575,209 | ||||||
4.00% due 09/01/2040 |
145,347 | 153,318 | ||||||
4.00% due 10/01/2040 |
306,924 | 322,952 | ||||||
4.00% due 12/01/2040 |
2,468,330 | 2,604,487 | ||||||
4.00% due 10/01/2041 |
1,440,924 | 1,520,834 | ||||||
4.00% due 11/01/2041 |
1,592,111 | 1,676,765 | ||||||
4.00% due 01/01/2043 |
1,157,637 | 1,226,921 | ||||||
4.00% due 12/01/2043 |
506,416 | 537,669 | ||||||
4.00% due 10/01/2044 |
5,010,234 | 5,269,374 | ||||||
4.00% due 02/01/2045 |
5,499,852 | 5,812,163 | ||||||
4.00% due 02/01/2046 |
4,099,433 | 4,311,725 | ||||||
4.00% due 06/01/2046 |
362,878 | 381,670 | ||||||
4.50% due 06/01/2018 |
1,435 | 1,472 | ||||||
4.50% due 10/01/2024 |
563,654 | 595,793 | ||||||
4.50% due 03/01/2025 |
782,936 | 823,311 | ||||||
4.50% due 06/01/2039 |
189,689 | 204,585 | ||||||
4.50% due 01/01/2040 |
515,717 | 555,568 | ||||||
4.50% due 02/01/2040 |
1,269,493 | 1,383,792 | ||||||
4.50% due 05/01/2040 |
413,501 | 449,340 | ||||||
4.50% due 11/01/2040 |
432,883 | 467,278 | ||||||
4.50% due 12/01/2040 |
389,027 | 418,526 | ||||||
4.50% due 05/01/2041 |
789,558 | 849,377 | ||||||
4.50% due 03/01/2042 |
4,329,166 | 4,665,983 | ||||||
4.50% due 08/01/2045 |
10,926,057 | 11,901,563 | ||||||
5.00% due 09/01/2018 |
1,256 | 1,289 | ||||||
5.00% due 10/01/2018 |
1,091 | 1,118 | ||||||
5.00% due 03/01/2020 |
3,326 | 3,471 | ||||||
5.00% due 06/01/2022 |
82,644 | 85,121 | ||||||
5.00% due 10/01/2024 |
280,135 | 290,056 | ||||||
5.00% due 09/01/2033 |
793,987 | 874,594 | ||||||
5.00% due 04/01/2040 |
434,088 | 476,359 | ||||||
5.00% due 05/01/2040 |
872,869 | 961,633 | ||||||
5.00% due 06/01/2040 |
4,003,804 | 4,393,687 | ||||||
5.00% due 07/01/2040 |
1,018,227 | 1,117,801 | ||||||
5.00% due 02/01/2045 |
2,296,182 | 2,555,211 | ||||||
5.50% due 12/01/2029 |
208,066 | 231,365 | ||||||
5.50% due 12/01/2033 |
40,792 | 45,782 | ||||||
5.50% due 07/01/2037 |
48,759 | 54,491 | ||||||
5.50% due 08/01/2037 |
1,877,698 | 2,098,829 | ||||||
5.50% due 06/01/2038 |
229,268 | 256,669 | ||||||
5.50% due 09/01/2039 |
724,861 | 812,660 | ||||||
6.00% due 08/01/2034 |
36,386 | 41,479 | ||||||
6.00% due 11/01/2035 |
61,799 | 70,624 | ||||||
6.00% due 06/01/2036 |
86,345 | 98,155 | ||||||
6.00% due 12/01/2036 |
150,280 | 170,137 | ||||||
6.00% due 07/01/2038 |
721,434 | 816,974 | ||||||
6.00% due 09/01/2038 |
386,749 | 437,938 | ||||||
6.00% due 11/01/2038 |
235,984 | 267,084 | ||||||
Fannie Mae Connecticut Avenue Securities FRS |
||||||||
Series 2013-C01, Class M1 2.78% due 10/25/2023(2) |
41,061 | 41,438 | ||||||
186,266,386 | ||||||||
Government National Mtg. Assoc. — 1.7% |
| |||||||
3.00% due 02/20/2045 |
2,632,642 | 2,668,051 | ||||||
3.00% due 05/20/2045 |
2,036,151 | 2,063,380 | ||||||
3.00% due 07/20/2045 |
493,714 | 500,286 | ||||||
3.50% due 03/20/2045 |
1,907,400 | 1,985,634 | ||||||
3.50% due 07/20/2045 |
902,924 | 939,958 | ||||||
4.00% due 03/20/2044 |
1,075,124 | 1,138,924 | ||||||
4.00% due 07/20/2045 |
3,422,251 | 3,624,789 | ||||||
4.00% due 10/20/2045 |
1,261,571 | 1,337,658 | ||||||
4.50% due 05/15/2039 |
671,703 | 739,017 | ||||||
5.00% due 05/15/2034 |
276,661 | 307,100 |
29 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares/ Principal Amount |
Value (Note 2) |
||||||
U.S. GOVERNMENT AGENCIES (continued) |
| |||||||
Government National Mtg. Assoc. (continued) |
| |||||||
5.00% due 01/15/2040 |
$ | 586,689 | $ | 658,727 | ||||
5.50% due 12/15/2039 |
804,017 | 908,515 | ||||||
6.00% due 10/15/2039 |
475,998 | 539,845 | ||||||
7.00% due 09/15/2028 |
3,848 | 3,939 | ||||||
17,415,823 | ||||||||
Tennessee Valley Authority — 0.1% |
| |||||||
1.75% due 10/15/2018 |
565,000 | 569,682 | ||||||
Total U.S. Government Agencies |
|
|||||||
(cost $360,478,179) |
357,146,450 | |||||||
U.S. GOVERNMENT TREASURIES — 12.2% |
| |||||||
United States Treasury Bonds — 5.3% |
| |||||||
2.25% due 08/15/2046 |
2,190,000 | 1,872,962 | ||||||
2.50% due 02/15/2045 |
4,308,000 | 3,906,650 | ||||||
2.50% due 02/15/2046 |
3,383,000 | 3,061,747 | ||||||
2.50% due 05/15/2046# |
5,170,000 | 4,677,030 | ||||||
2.88% due 11/15/2046 |
446,000 | 437,341 | ||||||
3.00% due 05/15/2045 |
2,154,000 | 2,161,405 | ||||||
3.00% due 11/15/2045 |
12,041,000 | 12,082,867 | ||||||
3.13% due 11/15/2041 |
2,952,000 | 3,042,520 | ||||||
3.13% due 02/15/2042 |
6,916,000 | 7,128,072 | ||||||
3.13% due 08/15/2044 |
310,000 | 318,852 | ||||||
3.63% due 08/15/2043 |
1,723,000 | 1,936,020 | ||||||
3.63% due 02/15/2044 |
523,000 | 587,803 | ||||||
3.75% due 08/15/2041 |
131,000 | 149,647 | ||||||
3.88% due 08/15/2040 |
507,000 | 590,378 | ||||||
4.25% due 11/15/2040 |
2,585,000 | 3,179,147 | ||||||
4.38% due 05/15/2041 |
1,638,000 | 2,054,347 | ||||||
4.50% due 02/15/2036# |
4,233,000 | 5,409,808 | ||||||
4.63% due 02/15/2040 |
245,000 | 316,978 | ||||||
5.25% due 11/15/2028 |
1,357,000 | 1,740,989 | ||||||
54,654,563 | ||||||||
United States Treasury Notes — 6.9% |
| |||||||
0.75% due 01/31/2018 |
1,173,000 | 1,171,397 | ||||||
0.88% due 01/31/2018# |
4,692,000 | 4,690,348 | ||||||
1.00% due 05/31/2018 |
11,890,000 | 11,889,536 | ||||||
1.13% due 06/30/2021 |
6,214,000 | 6,035,347 | ||||||
1.13% due 07/31/2021 |
2,819,000 | 2,734,320 | ||||||
1.25% due 11/30/2018 |
16,917,000 | 16,942,765 | ||||||
1.25% due 01/31/2020 |
1,000,000 | 993,867 | ||||||
1.38% due 06/30/2018 |
3,446,000 | 3,461,614 | ||||||
1.38% due 07/31/2018 |
4,136,000 | 4,154,740 | ||||||
1.38% due 12/31/2018 |
1,725,000 | 1,730,727 | ||||||
1.38% due 09/30/2020 |
1,984,000 | 1,964,779 | ||||||
1.50% due 08/31/2018 |
6,031,000 | 6,067,518 | ||||||
1.63% due 12/31/2019 |
584,000 | 586,806 | ||||||
1.75% due 12/31/2020 |
480,000 | 480,619 | ||||||
2.00% due 11/15/2021 |
862,000 | 866,950 | ||||||
2.00% due 07/31/2022 |
492,000 | 492,403 | ||||||
2.13% due 12/31/2021 |
473,000 | 478,081 | ||||||
2.38% due 05/31/2018 |
4,852,000 | 4,933,877 | ||||||
3.38% due 11/15/2019 |
947,000 | 996,717 | ||||||
70,672,411 | ||||||||
Total U.S. Government Treasuries |
|
|||||||
(cost $126,117,825) |
125,326,974 | |||||||
COMMON STOCKS — 0.0% |
| |||||||
Television — 0.0% |
| |||||||
ION Media Networks, Inc.†(5)(6) |
79 | 46,861 | ||||||
Security Description | Shares/ Principal Amount |
Value (Note 2) |
||||||
PREFERRED SECURITIES — 0.1% |
| |||||||
Electric - Distribution — 0.0% |
| |||||||
Entergy Louisiana LLC |
22,875 | $ | 529,785 | |||||
Sovereign Agency — 0.0% |
| |||||||
Federal Home Loan Mtg. Corp. FRS |
6,900 | 53,820 | ||||||
Telecom Services — 0.1% |
| |||||||
Qwest Corp. |
27,125 | 665,376 | ||||||
Total Preferred Securities |
||||||||
(cost $1,356,414) |
|
1,248,981 | ||||||
PREFERRED SECURITIES/CAPITAL SECURITIES — 1.9% |
| |||||||
Banks - Commercial — 0.0% |
| |||||||
Standard Chartered PLC VRS |
$ | 354,000 | 364,408 | |||||
Banks - Super Regional — 0.2% |
| |||||||
Fifth Third Bancorp FRS |
1,323,000 | 1,309,770 | ||||||
Wells Fargo Capital X |
413,000 | 440,877 | ||||||
1,750,647 | ||||||||
Diversified Banking Institutions — 0.4% |
| |||||||
BAC Capital Trust XIII FRS |
862,000 | 668,998 | ||||||
Deutsche Bank AG VRS |
600,000 | 560,250 | ||||||
JPMorgan Chase & Co. FRS |
1,759,000 | 1,867,091 | ||||||
Royal Bank of Scotland Group PLC VRS |
425,000 | 425,531 | ||||||
Societe Generale SA VRS |
993,000 | 990,517 | ||||||
4,512,387 | ||||||||
Electric - Integrated — 0.2% |
| |||||||
Dominion Resources, Inc. FRS |
754,000 | 789,815 | ||||||
Southern Co. FRS |
892,000 | 929,763 | ||||||
1,719,578 | ||||||||
Finance - Investment Banker/Broker — 0.0% |
| |||||||
Lehman Brothers Holdings Capital Trust VII |
148,000 | 15 | ||||||
Finance - Other Services — 0.1% |
| |||||||
National Rural Utilities Cooperative Finance Corp. FRS |
817,000 | 833,659 | ||||||
Financial Guarantee Insurance — 0.1% |
| |||||||
Assured Guaranty Municipal |
1,309,000 | 1,112,650 | ||||||
Food - Dairy Products — 0.1% |
| |||||||
Land O’Lakes Capital Trust I |
868,000 | 976,500 | ||||||
30 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
PREFERRED SECURITIES/CAPITAL SECURITIES (continued) |
| |||||||
Insurance - Life/Health — 0.1% |
| |||||||
Prudential Financial, Inc. FRS |
$ | 407,000 | $ | 425,315 | ||||
Prudential Financial, Inc. FRS |
921,000 | 991,733 | ||||||
1,417,048 | ||||||||
Insurance - Multi-line — 0.1% |
| |||||||
MetLife, Inc. |
1,052,000 | 1,162,460 | ||||||
Multimedia — 0.2% |
| |||||||
Viacom, Inc. FRS |
1,287,000 | 1,310,601 | ||||||
Viacom, Inc. FRS |
579,000 | 585,677 | ||||||
1,896,278 | ||||||||
Pipelines — 0.2% |
| |||||||
Transcanada Trust FRS |
1,460,000 | 1,474,600 | ||||||
TransCanada Trust FRS |
490,000 | 510,090 | ||||||
1,984,690 | ||||||||
Tools - Hand Held — 0.2% |
| |||||||
Stanley Black & Decker, Inc. FRS |
1,817,000 | 1,926,020 | ||||||
Total Preferred Securities/Capital Securities |
||||||||
(cost $18,533,361) |
19,656,340 | |||||||
Total Long-Term Investment Securities |
||||||||
(cost $993,322,535) |
998,625,207 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 5.6% |
| |||||||
Registered Investment Companies — 2.0% |
| |||||||
State Street Navigator Securities Lending Government Money Market Portfolio 0.50%(9)(10) |
20,710,665 | 20,710,665 | ||||||
Time Deposits — 3.6% |
| |||||||
Euro Time Deposit with State Street Bank and Trust Co. |
36,681,000 | 36,681,000 | ||||||
Total Short-Term Investment Securities |
||||||||
(cost $57,391,665) |
57,391,665 | |||||||
TOTAL INVESTMENTS |
||||||||
(cost $1,050,714,200)(11) |
102.6 | % | 1,056,016,872 | |||||
Liabilities in excess of other assets |
(2.6 | ) | (26,991,303 | ) | ||||
NET ASSETS |
100.0 | % | $ | 1,029,025,569 | ||||
* | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. At February 28, 2017, the aggregate value of these securities was $145,069,981 representing 14.1% of net assets. Unless otherwise indicated, these securities are not considered to be illiquid. |
# | The security or a portion thereof is out on loan (see Note 2). |
† | Non-income producing security |
(1) | Commercial Mortgage Backed Security |
(2) | Collateralized Mortgage Obligation |
(3) | Perpetual maturity — maturity date reflects the next call date. |
(4) | “Step-up” security where the rate increases (“steps-up”) at a predetermined rate. The rate reflected is as of February 28, 2017. |
(5) | Fair valued security. Securities are classified as Level 3 based on the securities valuation inputs (see Note 2). |
(6) | Illiquid security. At February 28, 2017, the aggregate value of these securities was $46,984 representing 0.0% of net assets. |
(7) | Interest Only |
(8) | Inverse Floating Rate Security that pays interest that varies inversely to changes in the market interest rates. The interest rate shown is the current interest rate at February 28, 2017. |
(9) | At February 28, 2017, the Fund had loaned securities with a total value of 64,149,003. This was secured by collateral of $20,710,665, which was received in cash and subsequently invested in short-term investments currently valued at $20,710,665 as reported in the Portfolio of Investments. Additional collateral of $44,913,558 was received in the form of fixed income pooled securities, which the Fund cannot sell or repledge and accordingly are not reflected in the Fund’s assets and liabilities. The components of the fixed income pooled securities referenced above are as follows: |
Securities |
Coupon Range |
Maturity Date Range |
Value as of February 28, 2017 |
|||||
Federal Home Loan Mtg. Corp. |
1.50% to 9.25% | 11/01/2017 to 03/01/2047 | $ | 3,726,187 | ||||
Federal National Mtg. Assoc. |
zero coupon to 8.50% | 11/01/2017 to 03/01/2047 | 5,098,222 | |||||
Government National Mtg. Assoc. |
1.21% to 8.50% | 12/16/2024 to 02/20/2067 | 6,454,207 | |||||
United States Treasury Bills |
0.00% | 05/04/2017 to 05/11/2017 | 60,195 | |||||
United States Treasury Notes/Bonds |
0.13% to 4.38% | 04/15/2017 to 02/15/2045 | 29,574,747 |
(10) | The rate shown is the 7-day yield as of February 28, 2017. |
(11) | See Note 5 for cost of investments on a tax basis. |
REMIC—Real Estate Mortgage Investment Conduit
TBA—Securities purchased on a forward commitment basis with an approximate principal amount and no definite maturity date. The actual principal and maturity date will be determined upon settlement date.
ULC—Unlimited Liability Corp.
FRS—Floating Rate Security
VRS—Variable Rate Security
The rates shown on FRS and VRS are the current interest rates at February 28, 2017 and unless noted otherwise, the dates are the original maturity dates.
31 |
VALIC Company II Core Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 - Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Asset Backed Securities |
$ | — | $ | 33,836,196 | $ | — | $ | 33,836,196 | ||||||||
U.S. Corporate Bonds & Notes: |
||||||||||||||||
Airlines |
— | 2,491,554 | 45,277 | 2,536,831 | ||||||||||||
Finance - Investment Banker/Broker |
— | 807,468 | 41 | 807,509 | ||||||||||||
Gambling (Non-Hotel) |
— | 2,372,025 | 67 | 2,372,092 | ||||||||||||
Other Industries |
— | 369,058,127 | — | 369,058,127 | ||||||||||||
Foreign Corporate Bonds & Notes |
— | 83,503,294 | — | 83,503,294 | ||||||||||||
Foreign Government Obligations |
— | 3,085,552 | — | 3,085,552 | ||||||||||||
U.S. Government Agencies |
— | 357,146,450 | — | 357,146,450 | ||||||||||||
U.S. Government Treasuries |
— | 125,326,974 | — | 125,326,974 | ||||||||||||
Common Stocks |
— | — | 46,861 | 46,861 | ||||||||||||
Preferred Securities |
1,248,981 | — | — | 1,248,981 | ||||||||||||
Preferred Securities/Capital Securities: |
||||||||||||||||
Finance - Investment Banker/Broker |
— | — | 15 | 15 | ||||||||||||
Other Industries |
— | 19,656,325 | — | 19,656,325 | ||||||||||||
Short-Term Investment Securities: |
||||||||||||||||
Registered Investment Companies |
20,710,665 | — | — | 20,710,665 | ||||||||||||
Time Deposits |
— | 36,681,000 | — | 36,681,000 | ||||||||||||
Total Investments at Value |
$ | 21,959,646 | $ | 1,033,964,965 | $ | 92,261 | $ | 1,056,016,872 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
At the beginning and end of the reporting period, Level 3 investments were not considered a material portion of the Fund.
See Notes to Financial Statements
32 |
VALIC Company II Government Money Market II Fund†
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
U.S. Government Agencies |
86.3 | % | ||
U.S. Government Treasuries |
18.2 | |||
Repurchase Agreements |
0.7 | |||
105.2 | % | |||
Credit Quality@#
A-1+ |
99.3 | % | ||
A-1 |
0.7 | |||
100.0 | % | |||
* | Calculated as a percentage of net assets. |
@ | Source Standard & Poor’s |
# | Calculated as a percentage of total debt issues. |
† | See Note 1 |
Weighted Average days to Maturity — 16.7 days
33 |
VALIC Company II Government Money Market II Fund†
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Principal Amount |
Value (Note 2) |
||||||
SHORT-TERM INVESTMENT SECURITIES — 104.5% |
| |||||||
U.S. Government Agencies — 86.3% |
| |||||||
Federal Farm Credit Bank |
||||||||
0.68% due 03/27/2017 FRS |
$ | 1,000,000 | $ | 999,976 | ||||
0.75% due 04/10/2017 FRS |
1,000,000 | 999,978 | ||||||
0.80% due 03/29/2017 FRS |
5,350,000 | 5,349,790 | ||||||
0.82% due 05/24/2017 FRS |
3,500,000 | 3,500,000 | ||||||
0.83% due 09/22/2017 FRS |
1,200,000 | 1,200,922 | ||||||
0.91% due 08/01/2017 FRS |
1,550,000 | 1,552,334 | ||||||
Federal Home Loan Bank |
||||||||
0.30% due 03/01/2017 |
7,000,000 | 7,000,000 | ||||||
0.53% due 03/15/2017 |
31,000,000 | 30,993,692 | ||||||
0.53% due 03/22/2017 |
7,500,000 | 7,497,681 | ||||||
0.53% due 05/05/2017 |
750,000 | 749,296 | ||||||
0.56% due 07/17/2017 FRS |
7,000,000 | 7,000,167 | ||||||
0.66% due 08/07/2017 FRS |
1,450,000 | 1,450,000 | ||||||
0.67% due 03/16/2017 FRS |
5,500,000 | 5,499,987 | ||||||
0.74% due 10/06/2017 FRS |
7,000,000 | 7,000,000 | ||||||
0.78% due 04/25/2017 FRS |
3,350,000 | 3,350,056 | ||||||
0.81% due 08/04/2017 FRS |
3,000,000 | 3,000,000 | ||||||
0.82% due 08/22/2017 FRS |
2,000,000 | 2,000,000 | ||||||
0.85% due 12/05/2017 FRS |
755,000 | 755,680 | ||||||
0.85% due 12/07/2017 FRS |
1,500,000 | 1,501,182 | ||||||
Federal Home Loan Mtg. Corp. |
||||||||
0.41% due 03/02/2017 |
1,000,000 | 999,989 | ||||||
0.56% due 05/04/2017 FRS |
3,500,000 | 3,500,000 | ||||||
0.79% due 04/20/2017 FRS |
1,200,000 | 1,200,444 | ||||||
0.82% due 04/27/2017 FRS |
3,500,000 | 3,501,310 | ||||||
0.91% due 07/21/2017 FRS |
1,500,000 | 1,500,559 | ||||||
1.00% due 06/29/2017 |
1,600,000 | 1,602,046 | ||||||
Federal National Mtg. Assoc. |
||||||||
0.45% due 03/02/2017 |
7,000,000 | 6,999,912 | ||||||
0.52% due 03/20/2017 |
3,500,000 | 3,499,058 | ||||||
0.79% due 09/08/2017 FRS |
700,000 | 700,899 | ||||||
0.79% due 10/05/2017 FRS |
600,000 | 600,261 | ||||||
0.80% due 07/20/2017 FRS |
1,000,000 | 1,000,277 | ||||||
Total U.S. Government Agencies |
||||||||
(amortized cost $116,505,496) |
116,505,496 | |||||||
Security Description | Principal Amount |
Value (Note 2) |
||||||
U.S. Government Treasuries — 18.2% |
| |||||||
United States Treasury Bills |
||||||||
0.48% due 03/02/2017 |
$ | 13,000,000 | $ | 12,999,827 | ||||
0.50% due 03/02/2017 |
5,000,000 | 4,999,931 | ||||||
0.51% due 03/09/2017 |
6,500,000 | 6,499,270 | ||||||
Total U.S. Government Treasuries |
||||||||
(amortized cost $24,499,028) |
24,499,028 | |||||||
Total Short-Term Investment Securities — 104.5% |
||||||||
(amortized cost $141,004,524) |
141,004,524 | |||||||
REPURCHASE AGREEMENTS — 0.7% |
| |||||||
Agreement with Fixed Income Clearing Corp., bearing interest at 0.03%, dated 02/28/2017, to be repurchased 03/01/2017 in the amount
of $984,001 and collateralized by $895,000 of United States Treasury Notes, bearing interest at 3.66%, due 08/15/2043 and having an approximate value of $1,004,108 |
984,000 | 984,000 | ||||||
TOTAL INVESTMENTS — |
||||||||
(amortized cost $141,988,524)(1) |
105.2 | % | 141,988,524 | |||||
Liabilities in excess of other assets |
(5.2 | ) | (7,079,944 | ) | ||||
NET ASSETS |
100.0 | % | $ | 134,908,580 | ||||
† | See Note 1 |
(1) | See Note 5 for cost of investments on a tax basis. |
FRS—Floating | Rate Security |
The rates shown on FRS are the current interest rates at February 28, 2017 and unless noted otherwise, the dates shown are the original maturity dates.
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level
2 - Other Observable Inputs |
Level 3 -
Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Short-Term Investment Securities |
$ | — | $ | 141,004,524 | $ | — | $ | 141,004,524 | ||||||||
Repurchase Agreements |
— | 984,000 | — | 984,000 | ||||||||||||
Total Investments at Value |
$ | — | $ | 141,988,524 | $ | — | $ | 141,988,524 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
See Notes to Financial Statements
34 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Oil Companies — Exploration & Production |
11.2 | % | ||
Registered Investment Companies |
9.0 | |||
Cable/Satellite TV |
7.7 | |||
Medical — Hospitals |
6.1 | |||
Repurchase Agreements |
4.5 | |||
Medical — Drugs |
3.9 | |||
Television |
3.7 | |||
Cellular Telecom |
2.8 | |||
Finance — Consumer Loans |
2.5 | |||
Building — Residential/Commercial |
2.3 | |||
Diversified Banking Institutions |
2.2 | |||
Telephone — Integrated |
2.2 | |||
Containers — Metal/Glass |
2.2 | |||
Containers — Paper/Plastic |
2.0 | |||
Steel — Producers |
1.9 | |||
Pipelines |
1.8 | |||
Data Processing/Management |
1.6 | |||
Chemicals — Specialty |
1.5 | |||
Rental Auto/Equipment |
1.3 | |||
Gambling (Non-Hotel) |
1.3 | |||
Electronic Components — Semiconductors |
1.2 | |||
Casino Hotels |
1.2 | |||
Finance — Other Services |
1.2 | |||
Telecommunication Equipment |
1.1 | |||
Enterprise Software/Service |
1.0 | |||
Cosmetics & Toiletries |
1.0 | |||
Diagnostic Kits |
1.0 | |||
Oil & Gas Drilling |
0.9 | |||
Metal — Aluminum |
0.9 | |||
Internet Content — Entertainment |
0.9 | |||
Diversified Minerals |
0.9 | |||
Building & Construction Products — Misc. |
0.9 | |||
Diversified Manufacturing Operations |
0.9 | |||
Semiconductor Equipment |
0.9 | |||
Broadcast Services/Program |
0.9 | |||
Office Automation & Equipment |
0.9 | |||
Multimedia |
0.9 | |||
Real Estate Investment Trusts |
0.8 | |||
Internet Connectivity Services |
0.8 | |||
Food — Canned |
0.8 | |||
Security Services |
0.8 | |||
Building Products — Cement |
0.8 | |||
Food — Flour & Grain |
0.7 | |||
Printing — Commercial |
0.7 | |||
Banks — Commercial |
0.7 | |||
Coal |
0.6 | |||
Disposable Medical Products |
0.6 | |||
Applications Software |
0.6 | |||
Insurance — Multi — line |
0.6 | |||
Transport — Equipment & Leasing |
0.5 | |||
Metal Processors & Fabrication |
0.5 | |||
Retail — Restaurants |
0.5 | |||
E-Commerce/Services |
0.5 | |||
Computer Services |
0.5 | |||
Racetracks |
0.5 | |||
Chemicals — Diversified |
0.5 | |||
Machinery — Material Handling |
0.5 | |||
Retail — Leisure Products |
0.5 | |||
Retail — Apparel/Shoe |
0.5 | |||
Oil — Field Services |
0.4 | |||
Retail — Arts & Crafts |
0.4 | |||
Machinery — General Industrial |
0.4 | |||
Independent Power Producers |
0.4 | |||
Housewares |
0.4 | |||
Financial Guarantee Insurance |
0.3 | |||
Computer Software |
0.3 | |||
Telecom Services |
0.3 | |||
Medical Information Systems |
0.3 | |||
Casino Services |
0.3 |
Hazardous Waste Disposal |
0.3 | |||
Office Supplies & Forms |
0.3 | |||
Electric — Generation |
0.2 | |||
Commercial Services — Finance |
0.2 | |||
Distribution/Wholesale |
0.2 | |||
Radio |
0.2 | |||
Steel — Specialty |
0.2 | |||
Finance — Credit Card |
0.2 | |||
Medical — Wholesale Drug Distribution |
0.1 | |||
Software Tools |
0.1 | |||
E-Commerce/Products |
0.1 | |||
Insurance — Property/Casualty |
0.1 | |||
Food — Misc./Diversified |
0.1 | |||
Medical — HMO |
0.1 | |||
Music |
0.1 | |||
107.9% | ||||
Credit Quality†#
Ba |
21.1 | % | ||
B |
51.0 | |||
Caa |
22.9 | |||
Not Rated@ |
5.0 | |||
100.0 | % | |||
* | Calculated as a percentage of net assets |
† | Source: Moody's |
# | Calculated as a percentage of total debt issues, excluding short-term securities. |
@ | Represents debt issues that either have no rating, or the rating is unavailable from the data source. |
35 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
CONVERTIBLE BONDS & NOTES — 2.4% |
||||||||
Cable/Satellite TV — 0.3% |
||||||||
DISH Network Corp. |
$ | 1,320,000 | $ | 1,588,950 | ||||
Commercial Services - Finance — 0.2% |
||||||||
Cardtronics, Inc. |
1,360,000 | 1,434,800 | ||||||
E-Commerce/Services — 0.5% |
||||||||
Priceline Group, Inc. |
1,490,000 | 1,668,800 | ||||||
Zillow Group, Inc. |
1,560,000 | 1,553,175 | ||||||
3,221,975 | ||||||||
Electronic Components - Semiconductors — 0.6% |
||||||||
Microchip Technology, Inc. |
1,205,000 | 1,719,384 | ||||||
Microchip Technology, Inc. |
1,068,000 | 1,078,013 | ||||||
Microchip Technology, Inc. |
1,113,000 | 1,121,347 | ||||||
3,918,744 | ||||||||
Finance - Credit Card — 0.2% |
||||||||
Blackhawk Network Holdings, Inc. |
949,000 | 963,235 | ||||||
Financial Guarantee Insurance — 0.2% |
||||||||
MGIC Investment Corp. |
1,010,000 | 1,544,038 | ||||||
Multimedia — 0.3% |
||||||||
Liberty Media Corp.-Liberty Formula One |
1,610,000 | 1,676,412 | ||||||
Oil Companies - Exploration & Production — 0.1% |
||||||||
Cobalt International Energy, Inc. |
1,465,000 | 454,150 | ||||||
PDC Energy, Inc. |
223,000 | 240,004 | ||||||
694,154 | ||||||||
Total Convertible Bonds & Notes |
||||||||
(cost $15,827,899) |
15,042,308 | |||||||
U.S. CORPORATE BONDS & NOTES — 73.3% |
||||||||
Applications Software — 0.6% |
||||||||
Emdeon, Inc. |
2,125,000 | 2,263,125 | ||||||
Emdeon, Inc. |
1,285,000 | 1,320,337 | ||||||
3,583,462 | ||||||||
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
Broadcast Services/Program — 0.9% |
||||||||
Clear Channel Worldwide Holdings, Inc. |
$ | 1,260,000 | $ | 1,269,450 | ||||
Liberty Interactive LLC |
4,055,000 | 4,338,850 | ||||||
5,608,300 | ||||||||
Building & Construction Products - Misc. — 0.9% |
||||||||
Ply Gem Industries, Inc. |
2,440,000 | 2,538,088 | ||||||
Standard Industries, Inc. |
550,000 | 573,375 | ||||||
Standard Industries, Inc. |
2,465,000 | 2,533,773 | ||||||
5,645,236 | ||||||||
Building Products - Cement — 0.5% |
||||||||
Cemex Finance LLC |
2,755,000 | 2,861,756 | ||||||
Building - Residential/Commercial — 2.3% |
||||||||
Beazer Homes USA, Inc. |
1,865,000 | 2,023,301 | ||||||
KB Home |
445,000 | 455,569 | ||||||
KB Home |
2,905,000 | 3,180,975 | ||||||
KB Home |
1,145,000 | 1,253,775 | ||||||
KB Home |
1,461,000 | 1,625,363 | ||||||
Lennar Corp. |
2,370,000 | 2,467,762 | ||||||
M/I Homes, Inc. |
3,295,000 | 3,459,750 | ||||||
14,466,495 | ||||||||
Cable/Satellite TV — 5.8% |
||||||||
CCO Holdings LLC/CCO Holdings Capital Corp. |
150,000 | 156,188 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. |
4,780,000 | 4,959,250 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. |
715,000 | 749,856 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. |
360,000 | 377,820 | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp. |
1,815,000 | 1,942,050 |
36 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
||||||||
Cable/Satellite TV (continued) |
||||||||
CCO Holdings LLC/CCO Holdings Capital Corp. |
$ | 1,490,000 | $ | 1,598,025 | ||||
Cequel Communications Holdings I LLC/Cequel Capital Corp. |
7,105,000 | 7,196,699 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital |
845,000 | 890,126 | ||||||
CSC Holdings LLC |
2,950,000 | 2,968,437 | ||||||
CSC Holdings LLC |
2,445,000 | 2,830,087 | ||||||
CSC Holdings LLC |
1,055,000 | 1,271,275 | ||||||
DISH DBS Corp. |
3,120,000 | 3,205,800 | ||||||
DISH DBS Corp. |
5,951,000 | 6,560,977 | ||||||
DISH DBS Corp. |
1,325,000 | 1,477,375 | ||||||
36,183,965 | ||||||||
Casino Hotels — 1.2% |
||||||||
Boyd Gaming Corp. |
3,870,000 | 4,184,437 | ||||||
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp. |
3,015,000 | 3,128,063 | ||||||
7,312,500 | ||||||||
Casino Services — 0.2% |
||||||||
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp. |
1,300,000 | 1,329,640 | ||||||
Cellular Telecom — 2.8% |
||||||||
Sprint Communications, Inc. |
2,240,000 | 2,447,200 | ||||||
Sprint Corp. |
3,945,000 | 4,259,377 | ||||||
Sprint Corp. |
5,140,000 | 5,602,600 | ||||||
Sprint Corp. |
4,945,000 | 5,501,313 | ||||||
17,810,490 | ||||||||
Chemicals - Diversified — 0.5% |
||||||||
Hexion, Inc. |
$ | 2,955,000 | $ | 3,043,650 | ||||
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
Chemicals - Specialty — 1.5% |
||||||||
Chemours Co. |
4,370,000 | 4,637,662 | ||||||
Chemours Co. |
455,000 | 494,244 | ||||||
Platform Specialty Products Corp. |
3,940,000 | 4,117,300 | ||||||
9,249,206 | ||||||||
Coal — 0.6% |
||||||||
Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp. |
1,045,000 | 1,139,050 | ||||||
Foresight Energy LLC/Foresight Energy Finance Corp. |
1,888,616 | 2,068,035 | ||||||
Peabody Securities Finance Corp. |
380,000 | 387,600 | ||||||
Peabody Securities Finance Corp. |
410,000 | 418,200 | ||||||
4,012,885 | ||||||||
Computer Services — 0.5% |
||||||||
Conduent Finance, Inc./Xerox Business Services LLC |
2,815,000 | 3,212,619 | ||||||
Containers - Metal/Glass — 0.9% |
||||||||
Ball Corp. |
EUR | 465,000 | 545,036 | |||||
Ball Corp. |
EUR | 620,000 | 739,391 | |||||
Owens-Brockway Glass Container, Inc. |
4,070,000 | 4,370,162 | ||||||
5,654,589 | ||||||||
Containers - Paper/Plastic — 2.0% |
||||||||
Berry Plastics Corp. |
2,760,000 | 2,922,150 | ||||||
Flex Acquisition Co, Inc. |
3,720,000 | 3,803,700 | ||||||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC |
3,080,000 | 3,191,650 | ||||||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC |
2,320,000 | 2,495,450 | ||||||
12,412,950 | ||||||||
Cosmetics & Toiletries — 1.0% |
||||||||
Avon International Operations, Inc. |
2,750,000 | 2,925,010 |
37 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
||||||||
Cosmetics & Toiletries (continued) |
||||||||
Revlon Consumer Products Corp. |
$ | 3,330,000 | $ | 3,421,575 | ||||
6,346,585 | ||||||||
Data Processing/Management — 1.6% |
||||||||
First Data Corp. |
3,580,000 | 3,723,200 | ||||||
First Data Corp. |
2,415,000 | 2,502,544 | ||||||
First Data Corp. |
3,245,000 | 3,488,375 | ||||||
9,714,119 | ||||||||
Diagnostic Kits — 1.0% |
||||||||
Alere, Inc. |
3,700,000 | 3,755,500 | ||||||
Alere, Inc. |
2,555,000 | 2,567,775 | ||||||
6,323,275 | ||||||||
Disposable Medical Products — 0.6% |
||||||||
Sterigenics-Nordion Holdings LLC |
3,815,000 | 3,900,837 | ||||||
Distribution/Wholesale — 0.2% |
||||||||
American Builders & Contractors Supply Co., Inc. |
335,000 | 343,794 | ||||||
American Builders & Contractors Supply Co., Inc. |
790,000 | 829,500 | ||||||
1,173,294 | ||||||||
Electric - Integrated — 0.0% |
||||||||
GenOn Americas Generation LLC |
250,000 | 223,750 | ||||||
Texas Competitive Electric Holdings Co. LLC/TCEH Finance, Inc. |
5,553,748 | 41,653 | ||||||
265,403 | ||||||||
Electronic Components - Semiconductors — 0.6% |
||||||||
Micron Technology, Inc. |
3,770,000 | 3,892,525 | ||||||
Enterprise Software/Service — 1.0% |
||||||||
Infor Software Parent LLC/Infor Software Parent, Inc. |
595,000 | 611,362 | ||||||
Infor US, Inc. |
165,000 | 171,188 | ||||||
Infor US, Inc. |
5,425,000 | 5,642,000 | ||||||
6,424,550 | ||||||||
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
Finance - Consumer Loans — 2.5% |
||||||||
Navient Corp. |
$ | 4,250,000 | $ | 3,984,375 | ||||
OneMain Financial Holdings LLC |
511,000 | 534,956 | ||||||
SLM Corp. |
570,000 | 545,775 | ||||||
SLM Corp. |
3,850,000 | 3,686,375 | ||||||
Springleaf Finance Corp. |
970,000 | 976,063 | ||||||
Springleaf Finance Corp. |
2,585,000 | 2,756,256 | ||||||
Springleaf Finance Corp. |
3,095,000 | 3,400,631 | ||||||
15,884,431 | ||||||||
Finance - Other Services — 1.2% |
||||||||
FBM Finance, Inc. |
1,080,000 | 1,155,816 | ||||||
Hexion 2 US Finance Corp. |
1,335,000 | 1,294,950 | ||||||
Nationstar Mtg. LLC/Nationstar Capital Corp. |
2,400,000 | 2,436,000 | ||||||
Nationstar Mtg. LLC/Nationstar Capital Corp. |
955,000 | 976,488 | ||||||
Nationstar Mtg. LLC/Nationstar Capital Corp. |
1,425,000 | 1,435,687 | ||||||
7,298,941 | ||||||||
Financial Guarantee Insurance — 0.1% |
||||||||
MGIC Investment Corp. |
680,000 | 719,100 | ||||||
Food - Canned — 0.8% |
||||||||
TreeHouse Foods, Inc. |
3,530,000 | 3,644,725 | ||||||
TreeHouse Foods, Inc. |
1,230,000 | 1,294,575 | ||||||
4,939,300 | ||||||||
Food - Flour & Grain — 0.7% |
||||||||
Post Holdings, Inc. |
4,040,000 | 3,906,155 | ||||||
Post Holdings, Inc. |
740,000 | 780,700 | ||||||
4,686,855 | ||||||||
Food - Misc./Diversified — 0.1% |
||||||||
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp. |
565,000 | 597,488 | ||||||
38 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
||||||||
Gambling (Non-Hotel) — 1.3% |
||||||||
Jacobs Entertainment, Inc. |
$ | 2,455,000 | $ | 2,522,512 | ||||
Pinnacle Entertainment, Inc. |
3,740,000 | 3,805,450 | ||||||
Scientific Games International, Inc. |
1,755,000 | 1,649,700 | ||||||
7,977,662 | ||||||||
Hazardous Waste Disposal — 0.2% |
||||||||
Clean Harbors, Inc. |
1,320,000 | 1,349,700 | ||||||
Housewares — 0.4% |
||||||||
American Greetings Corp. |
2,155,000 | 2,258,720 | ||||||
Independent Power Producers — 0.4% |
||||||||
Dynegy, Inc. |
1,200,000 | 1,140,000 | ||||||
RRI Energy, Inc. |
1,487,000 | 1,167,295 | ||||||
2,307,295 | ||||||||
Insurance - Multi-line — 0.6% |
||||||||
Genworth Financial, Inc. |
525,000 | 504,000 | ||||||
Genworth Holdings, Inc. |
260,000 | 219,050 | ||||||
Genworth Holdings, Inc. |
1,740,000 | 1,487,700 | ||||||
Genworth Holdings, Inc. |
990,000 | 955,350 | ||||||
Genworth Holdings, Inc. |
341,000 | 341,000 | ||||||
3,507,100 | ||||||||
Internet Connectivity Services — 0.8% |
||||||||
Zayo Group LLC/Zayo Capital, Inc. |
3,765,000 | 3,981,487 | ||||||
Zayo Group LLC/Zayo Capital, Inc. |
985,000 | 1,061,338 | ||||||
5,042,825 | ||||||||
Internet Content - Entertainment — 0.9% |
||||||||
Netflix, Inc. |
5,290,000 | 5,719,812 | ||||||
Machinery - General Industrial — 0.1% |
||||||||
Gardner Denver, Inc. |
825,000 | 849,750 | ||||||
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
Machinery - Material Handling — 0.5% |
||||||||
Cloud Crane LLC |
$ | 2,645,000 | $ | 2,902,887 | ||||
Medical Information Systems — 0.3% |
||||||||
Change Healthcare Holdings LLC/Change Healthcare Finance, Inc. |
1,890,000 | 1,952,011 | ||||||
Medical - Biomedical/Gene — 0.0% |
||||||||
Sterigenics-Nordion Topco LLC |
180,000 | 185,400 | ||||||
Medical - Drugs — 0.4% |
||||||||
PRA Holdings, Inc. |
2,104,000 | 2,345,960 | ||||||
Medical - HMO — 0.1% |
||||||||
MPH Acquisition Holdings LLC |
540,000 | 581,850 | ||||||
Medical - Hospitals — 6.1% |
||||||||
Amsurg Corp. |
2,995,000 | 3,118,544 | ||||||
CHS/Community Health Systems, Inc. |
200,000 | 201,250 | ||||||
CHS/Community Health Systems, Inc. |
9,335,000 | 8,191,462 | ||||||
CHS/Community Health Systems, Inc. |
2,010,000 | 1,889,400 | ||||||
Envision Healthcare Corp. |
1,680,000 | 1,719,900 | ||||||
HCA Holdings, Inc. |
5,000,000 | 5,443,750 | ||||||
HCA, Inc. |
2,140,000 | 2,238,975 | ||||||
HCA, Inc. |
1,820,000 | 1,774,500 | ||||||
LifePoint Health, Inc. |
1,185,000 | 1,217,588 | ||||||
Tenet Healthcare Corp. |
2,365,000 | 2,412,300 | ||||||
Tenet Healthcare Corp. |
5,095,000 | 5,098,465 | ||||||
Tenet Healthcare Corp. |
505,000 | 500,581 | ||||||
Tenet Healthcare Corp. |
4,370,000 | 4,577,575 | ||||||
38,384,290 | ||||||||
39 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
||||||||
Medical - Wholesale Drug Distribution — 0.1% |
||||||||
Vizient, Inc. |
$ | 795,000 | $ | 910,275 | ||||
Metal Processors & Fabrication — 0.5% |
||||||||
Novelis Corp. |
1,145,000 | 1,177,919 | ||||||
Novelis Corp. |
1,995,000 | 2,114,700 | ||||||
3,292,619 | ||||||||
Metal - Aluminum — 0.3% |
||||||||
Kaiser Aluminum Corp. |
1,940,000 | 2,037,000 | ||||||
Mining — 0.0% |
||||||||
Renco Metals, Inc. |
210,000 | 6,300 | ||||||
Music — 0.1% |
||||||||
WMG Acquisition Corp. |
555,000 | 567,488 | ||||||
Office Automation & Equipment — 0.9% |
||||||||
CDW LLC/CDW Finance Corp. |
1,410,000 | 1,452,300 | ||||||
CDW LLC/CDW Finance Corp. |
3,870,000 | 4,097,362 | ||||||
5,549,662 | ||||||||
Office Supplies & Forms — 0.3% |
||||||||
ACCO Brands Corp. |
1,615,000 | 1,635,188 | ||||||
Oil & Gas Drilling — 0.2% |
||||||||
Rowan Cos., Inc. |
1,850,000 | 1,517,000 | ||||||
Oil Companies - Exploration & Production — 9.2% |
||||||||
Antero Resources Corp. |
2,190,000 | 2,239,275 | ||||||
Antero Resources Corp. |
915,000 | 926,437 | ||||||
California Resources Corp. |
6,225,000 | 5,322,375 | ||||||
Callon Petroleum Co |
605,000 | 630,712 | ||||||
Concho Resources, Inc. |
2,780,000 | 2,877,300 | ||||||
Concho Resources, Inc. |
580,000 | 600,300 | ||||||
Continental Resources, Inc. |
665,000 | 615,956 |
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
Oil Companies - Exploration & Production (continued) |
||||||||
Continental Resources, Inc. |
$ | 415,000 | $ | 406,700 | ||||
Continental Resources, Inc. |
4,470,000 | 3,922,425 | ||||||
Continental Resources, Inc. |
1,425,000 | 1,453,500 | ||||||
Denbury Resources, Inc. |
4,585,000 | 4,940,337 | ||||||
Diamondback Energy, Inc. |
335,000 | 335,838 | ||||||
Energen Corp. |
2,170,000 | 2,164,575 | ||||||
Laredo Petroleum, Inc. |
3,216,000 | 3,240,120 | ||||||
Laredo Petroleum, Inc. |
1,380,000 | 1,414,500 | ||||||
Laredo Petroleum, Inc. |
1,135,000 | 1,174,725 | ||||||
Matador Resources Co. |
765,000 | 807,075 | ||||||
Matador Resources Co. |
2,550,000 | 2,690,250 | ||||||
PDC Energy, Inc. |
700,000 | 722,750 | ||||||
QEP Resources, Inc. |
4,356,000 | 4,290,660 | ||||||
QEP Resources, Inc. |
206,000 | 207,030 | ||||||
QEP Resources, Inc. |
245,000 | 256,638 | ||||||
Rice Energy, Inc. |
1,935,000 | 1,977,338 | ||||||
Rice Energy, Inc. |
555,000 | 586,913 | ||||||
RSP Permian, Inc. |
1,460,000 | 1,543,950 | ||||||
SM Energy Co. |
3,865,000 | 3,623,437 | ||||||
SM Energy Co. |
25,000 | 23,656 | ||||||
SM Energy Co. |
365,000 | 367,738 | ||||||
SM Energy Co. |
170,000 | 173,825 |
40 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
||||||||
Oil Companies - Exploration & Production (continued) |
||||||||
SM Energy Co. |
$ | 395,000 | $ | 401,913 | ||||
WPX Energy, Inc. |
3,415,000 | 3,333,894 | ||||||
WPX Energy, Inc. |
3,110,000 | 3,176,087 | ||||||
WPX Energy, Inc. |
970,000 | 1,086,400 | ||||||
57,534,629 | ||||||||
Pipelines — 1.8% |
||||||||
Blue Racer Midstream LLC/Blue Racer Finance Corp. |
3,780,000 | 3,846,150 | ||||||
Energy Transfer Equity LP |
3,605,000 | 3,816,794 | ||||||
Energy Transfer Equity LP |
1,350,000 | 1,517,062 | ||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. |
1,650,000 | 1,802,625 | ||||||
10,982,631 | ||||||||
Printing - Commercial — 0.7% |
||||||||
Quad/Graphics, Inc. |
4,610,000 | 4,598,475 | ||||||
Racetracks — 0.5% |
||||||||
Penn National Gaming, Inc. |
3,145,000 | 3,156,794 | ||||||
Radio — 0.2% |
||||||||
CBS Radio, Inc. |
1,095,000 | 1,168,913 | ||||||
Real Estate Investment Trusts — 0.8% |
||||||||
Equinix, Inc. |
1,420,000 | 1,516,730 | ||||||
FelCor Lodging LP |
3,555,000 | 3,777,188 | ||||||
5,293,918 | ||||||||
Rental Auto/Equipment — 1.3% |
||||||||
Herc Rentals, Inc. |
1,960,000 | 2,116,800 | ||||||
Herc Rentals, Inc. |
1,780,000 | 1,958,000 | ||||||
Hertz Corp. |
4,595,000 | 4,146,987 | ||||||
8,221,787 | ||||||||
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
Retail - Apparel/Shoe — 0.5% |
||||||||
L Brands, Inc. |
$ | 2,355,000 | $ | 2,263,744 | ||||
L Brands, Inc. |
651,000 | 624,146 | ||||||
2,887,890 | ||||||||
Retail - Arts & Crafts — 0.4% |
||||||||
Michaels Stores, Inc. |
2,600,000 | 2,671,500 | ||||||
Retail - Leisure Products — 0.5% |
||||||||
Party City Holdings, Inc. |
2,830,000 | 2,900,750 | ||||||
Retail - Restaurants — 0.5% |
||||||||
CEC Entertainment, Inc. |
3,065,000 | 3,225,912 | ||||||
Rubber/Plastic Products — 0.0% |
||||||||
Venture Holdings Co. LLC |
50,000 | 0 | ||||||
Security Services — 0.8% |
||||||||
APX Group, Inc. |
1,575,000 | 1,704,938 | ||||||
APX Group, Inc. |
2,815,000 | 3,047,237 | ||||||
4,752,175 | ||||||||
Semiconductor Equipment — 0.4% |
||||||||
Entegris, Inc. |
2,540,000 | 2,647,950 | ||||||
Software Tools — 0.1% |
||||||||
JDA Escrow LLC/JDA Bond Finance, Inc. |
775,000 | 813,750 | ||||||
Steel - Producers — 1.9% |
||||||||
AK Steel Corp. |
1,010,000 | 1,029,493 | ||||||
AK Steel Corp. |
2,000,000 | 2,075,000 | ||||||
AK Steel Corp. |
1,360,000 | 1,412,700 | ||||||
Steel Dynamics, Inc. |
915,000 | 943,594 | ||||||
Steel Dynamics, Inc. |
1,130,000 | 1,202,094 | ||||||
United States Steel Corp. |
286,000 | 295,295 | ||||||
United States Steel Corp. |
1,081,000 | 1,162,075 |
41 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
||||||||
Steel - Producers (continued) |
||||||||
United States Steel Corp. |
$ | 475,000 | $ | 494,000 | ||||
United States Steel Corp. |
3,019,000 | 3,396,375 | ||||||
12,010,626 | ||||||||
Steel - Specialty — 0.2% |
||||||||
Signode Industrial Group Lux SA/Signode Industrial Group US, Inc. |
975,000 | 1,001,813 | ||||||
Telecommunication Equipment — 1.1% |
||||||||
Alcatel-Lucent USA, Inc. |
6,485,000 | 7,165,925 | ||||||
Telephone - Integrated — 2.2% |
||||||||
Frontier Communications Corp. |
1,235,000 | 1,284,005 | ||||||
Frontier Communications Corp. |
3,030,000 | 3,045,150 | ||||||
Level 3 Financing, Inc. |
455,000 | 464,100 | ||||||
Level 3 Financing, Inc. |
4,330,000 | 4,367,887 | ||||||
Level 3 Financing, Inc. |
2,175,000 | 2,254,931 | ||||||
Sprint Capital Corp. |
2,115,000 | 2,255,119 | ||||||
13,671,192 | ||||||||
Television — 3.1% |
||||||||
Gannett Co., Inc. |
705,000 | 722,625 | ||||||
Gray Television, Inc. |
1,220,000 | 1,204,750 | ||||||
Gray Television, Inc. |
640,000 | 649,005 | ||||||
Sinclair Television Group, Inc. |
1,015,000 | 976,938 | ||||||
Sinclair Television Group, Inc. |
1,585,000 | 1,626,606 | ||||||
Sinclair Television Group, Inc. |
600,000 | 627,750 | ||||||
TEGNA, Inc. |
2,990,000 | 3,049,800 | ||||||
TEGNA, Inc. |
3,685,000 | 3,781,731 |
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
Television (continued) |
||||||||
TEGNA, Inc. |
$ | 2,535,000 | $ | 2,699,775 | ||||
Tribune Media Co. |
3,723,000 | 3,802,114 | ||||||
19,141,094 | ||||||||
Total U.S. Corporate Bonds & Notes |
||||||||
(cost $440,361,689) |
459,282,964 | |||||||
FOREIGN CORPORATE BONDS & NOTES — 14.5% |
||||||||
Building Products - Cement — 0.3% |
||||||||
Cemex SAB de CV |
890,000 | 915,588 | ||||||
Cemex SAB de CV |
710,000 | 795,200 | ||||||
1,710,788 | ||||||||
Cable/Satellite TV — 1.6% |
||||||||
Altice Financing SA |
600,000 | 631,500 | ||||||
Altice Financing SA |
3,755,000 | 4,031,931 | ||||||
Numericable-SFR SA |
2,705,000 | 2,803,056 | ||||||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH |
2,410,000 | 2,518,450 | ||||||
9,984,937 | ||||||||
Computer Software — 0.3% |
||||||||
Camelot Finance SA |
1,885,000 | 2,007,525 | ||||||
Containers - Metal/Glass — 1.3% |
||||||||
ARD Finance SA |
2,970,000 | 3,099,938 | ||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. |
3,375,000 | 3,501,562 | ||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. |
450,000 | 466,560 | ||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. |
845,000 | 921,050 | ||||||
7,989,110 | ||||||||
Diversified Manufacturing Operations — 0.9% |
||||||||
Bombardier, Inc. |
5,635,000 | 5,635,000 | ||||||
42 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
||||||||
Diversified Minerals — 0.9% |
||||||||
Anglo American Capital PLC |
$ | 590,000 | $ | 607,818 | ||||
Anglo American Capital PLC |
745,000 | 758,037 | ||||||
Anglo American Capital PLC |
490,000 | 508,375 | ||||||
Anglo American Capital PLC |
890,000 | 1,007,925 | ||||||
Teck Resources, Ltd. |
785,000 | 874,294 | ||||||
Teck Resources, Ltd. |
1,630,000 | 1,903,025 | ||||||
5,659,474 | ||||||||
Gold Mining — 0.0% |
||||||||
New Gold, Inc. |
160,000 | 162,000 | ||||||
Hazardous Waste Disposal — 0.1% |
||||||||
Tervita Escrow Corp. |
320,000 | 334,400 | ||||||
Medical - Drugs — 3.5% |
||||||||
Endo, Ltd./Endo Finance LLC/Endo Finco, Inc. |
4,910,000 | 4,517,200 | ||||||
Endo, Ltd./Endo Finance LLC/Endo Finco, Inc. |
4,510,000 | 4,030,812 | ||||||
Valeant Pharmaceuticals International, Inc. |
1,910,000 | 1,539,938 | ||||||
Valeant Pharmaceuticals International, Inc. |
12,550,000 | 10,212,562 | ||||||
Valeant Pharmaceuticals International, Inc. |
2,035,000 | 1,620,369 | ||||||
21,920,881 | ||||||||
Metal - Aluminum — 0.6% |
||||||||
Constellium NV |
3,430,000 | 3,713,318 | ||||||
Multimedia — 0.2% |
||||||||
Quebecor Media, Inc. |
1,415,000 | 1,508,744 | ||||||
Oil & Gas Drilling — 0.7% |
||||||||
Noble Holding International, Ltd. |
2,375,000 | 2,309,687 | ||||||
Transocean, Inc. |
860,000 | 705,200 | ||||||
Transocean, Inc. |
255,000 | 232,050 |
Security Description | Principal Amount(13) |
Value (Note 2) |
||||||
Oil & Gas Drilling (continued) |
||||||||
Transocean, Inc. |
$ | 1,035,000 | $ | 1,022,063 | ||||
4,269,000 | ||||||||
Oil Companies - Exploration & Production — 1.9% |
||||||||
MEG Energy Corp. |
3,715,000 | 3,297,063 | ||||||
MEG Energy Corp. |
1,490,000 | 1,456,475 | ||||||
MEG Energy Corp. |
2,460,000 | 2,214,000 | ||||||
Tullow Oil PLC |
1,220,000 | 1,149,850 | ||||||
Tullow Oil PLC |
4,235,000 | 3,949,137 | ||||||
12,066,525 | ||||||||
Oil - Field Services — 0.4% |
||||||||
Weatherford International, Ltd. |
640,000 | 536,000 | ||||||
Weatherford International, Ltd. |
1,700,000 | 1,568,250 | ||||||
Weatherford International, Ltd. |
640,000 | 603,200 | ||||||
2,707,450 | ||||||||
Semiconductor Equipment — 0.5% |
||||||||
Sensata Technologies BV |
1,435,000 | 1,456,525 | ||||||
Sensata Technologies BV |
1,430,000 | 1,508,650 | ||||||
2,965,175 | ||||||||
Special Purpose Entity — 0.0% |
||||||||
Hellas Telecommunications Luxembourg II SCA FRS |
925,000 | 0 | ||||||
Telecom Services — 0.3% |
||||||||
Wind Acquisition Finance SA |
1,940,000 | 1,971,525 | ||||||
Television — 0.5% |
||||||||
Videotron, Ltd. |
2,720,000 | 2,862,800 | ||||||
Transport - Equipment & Leasing — 0.5% |
||||||||
Park Aerospace Holdings, Ltd. |
1,890,000 | 1,970,325 |
43 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares/ Principal Amount(13) |
Value (Note 2) |
||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
||||||||
Transport - Equipment & Leasing (continued) |
||||||||
Park Aerospace Holdings, Ltd. |
$ | 1,375,000 | $ | 1,437,150 | ||||
3,407,475 | ||||||||
Total Foreign Corporate Bonds & Notes |
||||||||
(cost $90,222,212) |
90,876,127 | |||||||
LOANS(2)(6)(7)(8) — 0.5% |
||||||||
Building - Residential/Commercial — 0.0% |
||||||||
TOUSA, Inc. |
2,037,810 | 0 | ||||||
E-Commerce/Products — 0.1% |
||||||||
Lands’ End, Inc. FRS |
1,010,712 | 747,927 | ||||||
Insurance - Property/Casualty — 0.1% |
||||||||
Asurion LLC FRS |
635,000 | 641,946 | ||||||
Machinery - General Industrial — 0.3% |
||||||||
Gardner Denver, Inc. FRS |
1,818,900 | 1,807,532 | ||||||
Total Loans |
||||||||
(cost $3,455,619) |
3,197,405 | |||||||
COMMON STOCKS — 0.3% |
||||||||
Electric - Generation — 0.2% |
||||||||
Vistra Energy Corp.† |
93,359 | 1,508,681 | ||||||
Vistra Energy Corp. CVR† |
93,359 | 1,016 | ||||||
1,509,697 | ||||||||
Multimedia — 0.0% |
||||||||
Haights Cross Communication, Inc. †(2)(3) |
10,439 | 0 | ||||||
Television — 0.1% |
||||||||
ION Media Networks, Inc.†(2)(3)(9) |
616 | 365,401 | ||||||
Total Common Stocks |
||||||||
(cost $5,224,629) |
1,875,098 | |||||||
MEMBERSHIP INTEREST CERTIFICATES†(2)(9) — 0.1% |
|
|||||||
Casino Services — 0.1% |
||||||||
Herbst Gaming, Inc. |
23,439 | 392,605 | ||||||
PREFERRED SECURITIES/CAPITAL SECURITIES — 3.3% |
|
|||||||
Banks - Commercial — 0.7% |
||||||||
Banco Bilbao Vizcaya Argentaria SA VRS |
EUR 1,000,000 | 1,038,222 | ||||||
Banco Bilbao Vizcaya Argentaria SA VRS |
EUR 1,800,000 | 2,093,397 | ||||||
Intesa Sanpaolo SpA VRS |
1,435,000 | 1,361,456 | ||||||
4,493,075 | ||||||||
Diversified Banking Institutions — 2.2% |
||||||||
Barclays PLC VRS |
879,000 | 922,115 | ||||||
Barclays PLC VRS |
EUR 1,000,000 | 1,156,144 | ||||||
Barclays PLC VRS |
1,120,000 | 1,188,600 | ||||||
BNP Paribas SA VRS |
1,615,000 | 1,705,440 |
Security Description | Shares/ Principal Amount(13) |
Value (Note 2) |
||||||
Diversified Banking Institutions (continued) |
||||||||
Credit Agricole SA VRS |
$ | 2,520,000 | $ | 2,693,502 | ||||
Credit Suisse Group AG VRS |
3,150,000 | 3,191,372 | ||||||
Royal Bank of Scotland Group PLC FRS |
1,690,000 | 1,892,800 | ||||||
Royal Bank of Scotland Group PLC FRS |
500,000 | 476,250 | ||||||
Societe Generale SA VRS |
875,000 | 912,047 | ||||||
14,138,270 | ||||||||
Multimedia — 0.4% |
||||||||
NBCUniversal Enterprise, Inc. |
1,260,000 | 1,329,300 | ||||||
Viacom, Inc. FRS |
660,000 | 672,103 | ||||||
Viacom, Inc. FRS |
245,000 | 247,826 | ||||||
2,249,229 | ||||||||
Total Preferred Securities/Capital Securities |
||||||||
(cost $20,195,304) |
20,880,574 | |||||||
Total Long-Term Investment Securities |
||||||||
(cost $575,520,053) |
591,547,081 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 9.0% |
||||||||
Registered Investment Companies — 9.0% |
||||||||
State Street Navigator Securities Lending Government Money Market Portfolio 0.50%(11)(12) |
56,735,310 | 56,735,310 | ||||||
REPURCHASE AGREEMENTS — 4.5% |
||||||||
Agreement with Fixed Income Clearing Corp., bearing interest at 0.03%, dated 02/28/17, to be repurchased 03/01/17 in the amount of
$28,111,023 and collateralized by $31,700,000 of United States Treasury Notes, bearing interest at 2.50%, due 02/15/2045 and having an approximate value of $28,674,932 |
28,111,000 | 28,111,000 | ||||||
TOTAL INVESTMENTS |
||||||||
(cost $660,366,363)(14) |
107.9 | % | 676,393,391 | |||||
Liabilities in excess of other assets |
(7.9 | ) | (49,522,752 | ) | ||||
NET ASSETS |
100.0 | % | $ | 626,870,639 | ||||
* | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. At February 28, 2017, the aggregate value of these securities was $276,675,937 representing 44.1% of net assets. Unless otherwise indicated, these securities are not considered to be illiquid. |
# | The security or a portion thereof is out on loan (see Note 2). |
† | Non-income producing security |
(1) | PIK (“Payment-in-Kind”) security — Income may be paid in additional securities or cash at the discretion of the issuer. The security is currently paying interest in cash at the coupon rate listed. |
(2) | Illiquid security. At February 28, 2017, the aggregate value of these securities was $14,151,704 representing 2.3% of net assets. |
(3) | Fair valued security. Securities are classified as Level 3 based on the securities valuation inputs (see Note 2). |
(4) | Company has filed for bankruptcy protection. |
(5) | Security in default of interest and principal at maturity. |
(6) | Senior loans in the Fund are generally subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant |
44 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
economic incentives for a borrower to prepay, prepayments may occur. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. |
(7) | The Fund invests in senior loans which generally pay interest at rates which are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the London Inter-Bank Offer Rate (“LIBOR”) or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. Senior loans are generally considered to be restrictive in that the Fund is ordinarily contractually obligated to receive approval from the Agent Bank and/or borrower prior to the disposition of a senior loan. |
(8) | All loans in the Fund were purchased through assignment agreements unless otherwise indicated. |
(9) | Denotes a restricted security that: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933, as amended (the “1933 Act”); (b) is subject to a contractual restriction on public sales; or (c) is otherwise subject to a restriction on sales by operation of applicable law. Restricted securities are valued pursuant to Note 2. Certain restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the 1933 Act. The Fund has no right to demand registration of these securities. The risk of investing in certain restricted securities is greater than the risk of investing in the securities of widely held, publicly traded companies. To the extent applicable, lack of a secondary market and resale restrictions may result in the inability of a Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, certain restricted securities may exhibit greater price volatility than securities for which secondary markets exist. As of February 28, 2017, the Fund held the following restricted securities: |
Description |
Acquisition Date |
Shares |
Acquisition Cost |
Value |
Value Per Share |
% of Net Assets |
||||||||||||||||||
Common Stock |
||||||||||||||||||||||||
ION Media Networks, Inc. |
12/16/2016 | 616 | $ | – | $ | 365,401 | $ | 593.18 | 0.06% | |||||||||||||||
Membership Interest |
||||||||||||||||||||||||
Herbst Gaming, Inc. |
03/26/2008 | 23,439 | 232,701 | 392,605 | 16.75 | 0.06% |
(10) | Perpetual maturity — maturity date reflects the next call date. |
(11) | At February 28, 2017, the Fund had loaned securities with a total value of $55,733,170. This was secured by collateral of $56,735,310, which was received in cash and subsequently invested in short-term investments currently valued at $56,735,310 as reported in the Portfolio of Investments. |
(12) | The rate shown is the 7-day yield as of February 28, 2017. |
(13) | Denominated in United States dollars unless otherwise indicated. |
(14) | See Note 5 for cost of investments on a tax basis. |
BTL—Bank Term Loan
CVR—Contingent Value Rights
EUR—Euro Currency
FRS—Floating Rate Security
VRS—Variable Rate Security
The rates shown on FRS and VRS are the current interest rates at February 28, 2017 and unless noted otherwise, the dates shown are the original maturity dates.
Forward Foreign Currency Contracts | ||||||||||||||||||||||||||||
Counterparty | Contract to Deliver | In Exchange For | Delivery Date |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||||||||
JPMorgan Chase Bank N.A |
EUR | 4,953,000 | USD | 5,226,792 | 03/31/2017 | $ | – | $ | (27,498 | ) | ||||||||||||||||||
Centrally Cleared Credit Default Swaps on Credit Indicies — Sell Protection(1) | ||||||||||||||||||||||||
Value(4) |
||||||||||||||||||||||||
Reference Obligation | Fixed Deal Receive Rate |
Termination Date |
Implied Credit Spread at February 28, 2017(2) |
Notional Amount(3) (000’s) |
Upfront Premiums Paid/ (Received) |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||
Markit CDX North America High Yield Index |
5.00 | % | 12/20/2021 | 0.3161 | % | $ | 11,375 | $ | 462,743 | $ | 414,442 | |||||||||||||
(1) | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. |
(2) | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging market country as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation. |
(3) | The maximum potential amount the Fund could be required to make as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(4) | The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement have been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
45 |
VALIC Company II High Yield Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 - Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Convertible Bonds & Notes |
$ | — | $ | 15,042,308 | $ | — | $ | 15,042,308 | ||||||||
U.S. Corporate Bonds & Notes: |
||||||||||||||||
Mining |
— | — | 6,300 | 6,300 | ||||||||||||
Rubber/Plastic Products |
— | — | 0 | 0 | ||||||||||||
Other Industries |
— | 459,276,664 | — | 459,276,664 | ||||||||||||
Foreign Corporate Bonds & Notes: |
||||||||||||||||
Special Purpose Entity |
— | — | 0 | 0 | ||||||||||||
Other Industries |
— | 90,876,127 | — | 90,876,127 | ||||||||||||
Loans: |
||||||||||||||||
Building-Residential/Commercial |
— | — | 0 | 0 | ||||||||||||
Other Industries |
— | 3,197,405 | — | 3,197,405 | ||||||||||||
Common Stocks: |
||||||||||||||||
Electric-Generation |
1,508,681 | 1,016 | — | 1,509,697 | ||||||||||||
Other Industries |
— | — | 365,401 | 365,401 | ||||||||||||
Membership Interest Certificates |
— | 392,605 | — | 392,605 | ||||||||||||
Preferred Securities/Capital Securities |
— | 20,880,574 | — | 20,880,574 | ||||||||||||
Short-Term Investment Securities |
56,735,310 | — | — | 56,735,310 | ||||||||||||
Repurchase Agreements |
— | 28,111,000 | — | 28,111,000 | ||||||||||||
Total Investments at Value |
$ | 58,243,991 | $ | 617,777,699 | $ | 371,701 | $ | 676,393,391 | ||||||||
Other Financial Instruments:+ |
||||||||||||||||
Centrally Cleared Credit Default Swaps on Credit Indicies - Sell Protection |
$ | — | $ | 414,442 | $ | — | $ | 414,442 | ||||||||
LIABILITIES: |
||||||||||||||||
Other Financial Instruments:+ |
||||||||||||||||
Forward Foreign Currency Contracts |
$ | — | $ | 27,498 | $ | — | $ | 27,498 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
+ | Other financial instruments are derivative instruments, not reflected in the Portfolio of Investments, such as futures, forward, swap and written option contracts, which are valued at the unrealized appreciation (depreciation) on the instrument. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
At the beginning and end of the reporting period, Level 3 investments were not considered a material portion of the Fund.
See Notes to Financial Statements
46 |
VALIC Company II International Opportunities Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Auto/Truck Parts & Equipment-Original |
4.9 | % | ||
Registered Investment Companies |
4.3 | |||
Banks — Commercial |
4.0 | |||
Containers — Paper/Plastic |
2.8 | |||
Electronic Components-Misc. |
2.5 | |||
Retail — Discount |
2.4 | |||
Computer Services |
2.1 | |||
Repurchase Agreements |
2.1 | |||
Distribution/Wholesale |
2.1 | |||
Machinery — General Industrial |
2.0 | |||
Diversified Financial Services |
1.8 | |||
E-Commerce/Products |
1.8 | |||
Casino Services |
1.7 | |||
Building & Construction Products — Misc. |
1.7 | |||
Beverages — Non-alcoholic |
1.7 | |||
Commercial Services |
1.5 | |||
Retail — Restaurants |
1.5 | |||
Steel — Producers |
1.5 | |||
Chemicals — Diversified |
1.5 | |||
Photo Equipment & Supplies |
1.5 | |||
Food — Misc./Diversified |
1.4 | |||
E-Commerce/Services |
1.4 | |||
Oil — Field Services |
1.4 | |||
Enterprise Software/Service |
1.3 | |||
Oil Companies — Exploration & Production |
1.3 | |||
Apparel Manufacturers |
1.3 | |||
Steel — Specialty |
1.2 | |||
Human Resources |
1.2 | |||
Beverages — Wine/Spirits |
1.1 | |||
Hotels/Motels |
1.1 | |||
Food — Wholesale/Distribution |
1.1 | |||
Wireless Equipment |
1.1 | |||
Fisheries |
1.1 | |||
Chemicals — Specialty |
1.1 | |||
Real Estate Operations & Development |
1.0 | |||
Building Products — Cement |
1.0 | |||
Diversified Operations/Commercial Services |
1.0 | |||
Computers — Periphery Equipment |
1.0 | |||
Applications Software |
1.0 | |||
Food — Catering |
0.9 | |||
Insurance — Property/Casualty |
0.9 | |||
Medical — Drugs |
0.9 | |||
Transport — Services |
0.8 | |||
Chemicals — Fibers |
0.8 | |||
Medical — Biomedical/Gene |
0.8 | |||
Transactional Software |
0.8 | |||
Retail — Misc./Diversified |
0.8 | |||
Computers — Integrated Systems |
0.8 | |||
Cosmetics & Toiletries |
0.8 | |||
Medical Labs & Testing Services |
0.8 | |||
Investment Management/Advisor Services |
0.7 | |||
Transport — Marine |
0.7 | |||
Gambling (Non-Hotel) |
0.7 | |||
Medical Products |
0.7 | |||
Electronic Components — Semiconductors |
0.7 | |||
Metal — Copper |
0.6 | |||
Brewery |
0.6 | |||
Retail — Drug Store |
0.6 | |||
Retail — Apparel/Shoe |
0.6 | |||
Semiconductor Equipment |
0.5 | |||
Forestry |
0.5 | |||
Wire & Cable Products |
0.5 | |||
Machine Tools & Related Products |
0.5 | |||
Funeral Services & Related Items |
0.5 | |||
Airlines |
0.5 | |||
Insurance Brokers |
0.5 | |||
Containers — Metal/Glass |
0.5 | |||
Building & Construction — Misc. |
0.5 | |||
U.S. Government Agencies |
0.5 | |||
Metal Processors & Fabrication |
0.5 |
Food — Flour & Grain |
0.4 | |||
Oil Refining & Marketing |
0.4 | |||
E-Services/Consulting |
0.4 | |||
Respiratory Products |
0.4 | |||
Appliances |
0.4 | |||
Coatings/Paint |
0.4 | |||
Building Products — Wood |
0.4 | |||
Aerospace/Defense |
0.4 | |||
Real Estate Management/Services |
0.4 | |||
Consulting Services |
0.4 | |||
Electronic Measurement Instruments |
0.4 | |||
Research & Development |
0.3 | |||
Transport — Truck |
0.3 | |||
Machinery — Material Handling |
0.3 | |||
Building — Maintenance & Services |
0.3 | |||
Insurance — Life/Health |
0.3 | |||
Satellite Telecom |
0.3 | |||
Miscellaneous Manufacturing |
0.3 | |||
Leisure Products |
0.3 | |||
Electric — Generation |
0.3 | |||
Gas — Distribution |
0.3 | |||
Explosives |
0.3 | |||
Rubber/Plastic Products |
0.3 | |||
Food — Retail |
0.2 | |||
Food — Confectionery |
0.2 | |||
Telephone — Integrated |
0.2 | |||
Retail — Convenience Store |
0.2 | |||
Soap & Cleaning Preparation |
0.2 | |||
Gold Mining |
0.2 | |||
Metal — Iron |
0.2 | |||
Finance — Other Services |
0.2 | |||
Electric Products — Misc. |
0.2 | |||
Resorts/Theme Parks |
0.2 | |||
Retail — Home Furnishings |
0.2 | |||
Electronic Connectors |
0.2 | |||
Building — Residential/Commercial |
0.2 | |||
Schools |
0.2 | |||
Retail — Automobile |
0.2 | |||
Telecommunication Equipment |
0.2 | |||
Advertising Services |
0.2 | |||
Diversified Minerals |
0.2 | |||
Dental Supplies & Equipment |
0.2 | |||
Veterinary Products |
0.2 | |||
Diversified Manufacturing Operations |
0.2 | |||
Female Health Care Products |
0.2 | |||
Rental Auto/Equipment |
0.2 | |||
Hazardous Waste Disposal |
0.2 | |||
Finance — Investment Banker/Broker |
0.2 | |||
Tobacco |
0.2 | |||
Food — Meat Products |
0.2 | |||
E-Marketing/Info |
0.2 | |||
Agricultural Operations |
0.2 | |||
Engineering/R&D Services |
0.1 | |||
Finance — Credit Card |
0.1 | |||
Home Furnishings |
0.1 | |||
Internet Content — Information/News |
0.1 | |||
Gas — Transportation |
0.1 | |||
Medical Instruments |
0.1 | |||
Retail — Sporting Goods |
0.1 | |||
Cable/Satellite TV |
0.1 | |||
Television |
0.1 | |||
Footwear & Related Apparel |
0.1 | |||
Power Converter/Supply Equipment |
0.1 | |||
Office Supplies & Forms |
0.1 | |||
Paper & Related Products |
0.1 | |||
Electric — Integrated |
0.1 | |||
Finance — Consumer Loans |
0.1 | |||
Computers |
0.1 | |||
Industrial Gases |
0.1 |
47 |
VALIC Company II International Opportunities Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Industry Allocation* (continued)
Real Estate Investment Trusts |
0.1 | % | ||
Airport Development/Maintenance |
0.1 | |||
Auto — Cars/Light Trucks |
0.1 | |||
Medical Information Systems |
0.1 | |||
Aerospace/Defense — Equipment |
0.1 | |||
Instruments — Controls |
0.1 | |||
Bicycle Manufacturing |
0.1 | |||
Office Automation & Equipment |
0.1 | |||
Instruments — Scientific |
0.1 | |||
104.4% | ||||
Country Allocation*
Japan |
19.6 | % | ||
United Kingdom |
16.0 | |||
United States |
7.9 | |||
France |
5.1 | |||
Switzerland |
4.7 | |||
Germany |
4.5 | |||
Cayman Islands |
4.4 | |||
Australia |
4.0 | |||
Canada |
3.8 | |||
Italy |
3.5 | |||
Denmark |
2.7 | |||
Brazil |
2.1 | |||
Bermuda |
2.0 | |||
Sweden |
2.0 | |||
Finland |
1.8 | |||
Taiwan |
1.7 | |||
Thailand |
1.6 | |||
Norway |
1.5 | |||
South Korea |
1.4 | |||
Ireland |
1.4 | |||
Austria |
1.4 | |||
Spain |
1.4 | |||
Netherlands |
1.3 | |||
Israel |
1.2 | |||
Curacao |
1.1 | |||
Singapore |
1.1 | |||
Luxembourg |
0.8 | |||
Jersey |
0.6 | |||
Faroe Islands |
0.6 | |||
Mexico |
0.6 | |||
Hong Kong |
0.5 | |||
Russia |
0.5 | |||
New Zealand |
0.4 | |||
South Africa |
0.4 | |||
Malaysia |
0.2 | |||
Indonesia |
0.2 | |||
Mauritius |
0.1 | |||
Portugal |
0.1 | |||
Philippines |
0.1 | |||
Turkey |
0.1 | |||
104.4% | ||||
* | Calculated as a percentage of net assets |
48 |
VALIC Company II International Opportunities Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Shares |
Value |
||||||
COMMON STOCKS — 96.2% |
||||||||
Australia — 4.0% |
| |||||||
Ansell, Ltd. |
86,570 | $ | 1,413,086 | |||||
Aristocrat Leisure, Ltd. |
745,372 | 9,486,514 | ||||||
AUB Group, Ltd. |
194,146 | 1,674,582 | ||||||
BlueScope Steel, Ltd. |
437,279 | 4,096,900 | ||||||
Computershare, Ltd. |
125,601 | 1,300,990 | ||||||
DuluxGroup, Ltd. |
153,831 | 724,165 | ||||||
Iluka Resources, Ltd. |
207,214 | 1,077,145 | ||||||
Orica, Ltd. |
102,979 | 1,444,069 | ||||||
Reliance Worldwide Corp., Ltd.†# |
259,064 | 554,162 | ||||||
Super Retail Group, Ltd.# |
83,097 | 672,146 | ||||||
22,443,759 | ||||||||
Austria — 1.4% |
| |||||||
BUWOG AG |
98,893 | 2,469,363 | ||||||
Lenzing AG |
30,048 | 4,727,176 | ||||||
Mayr-Melnhof Karton AG |
7,294 | 806,726 | ||||||
8,003,265 | ||||||||
Bermuda — 2.0% |
| |||||||
Cafe de Coral Holdings, Ltd. |
358,000 | 1,189,813 | ||||||
China Resources Gas Group, Ltd. |
532,000 | 1,624,187 | ||||||
Credicorp, Ltd. |
6,896 | 1,135,219 | ||||||
Dairy Farm International Holdings, Ltd. |
180,900 | 1,543,077 | ||||||
Esprit Holdings, Ltd.† |
357,450 | 338,438 | ||||||
Global Brands Group Holding, Ltd.† |
4,344,000 | 509,222 | ||||||
Hiscox, Ltd. |
200,429 | 2,700,908 | ||||||
Midland Holdings, Ltd.† |
2,492,000 | 680,550 | ||||||
Pacific Basin Shipping, Ltd.† |
1,022,049 | 225,135 | ||||||
Peace Mark Holdings, Ltd.†(4)(5) |
686,000 | 0 | ||||||
VTech Holdings, Ltd. |
96,549 | 1,089,502 | ||||||
XL Group, Ltd. |
12,144 | 491,710 | ||||||
11,527,761 | ||||||||
Brazil — 2.1% |
| |||||||
BR Insurance Corretora de Seguros SA† |
3,610 | 22,593 | ||||||
BRF SA |
34,200 | 446,546 | ||||||
CETIP SA — Mercados Organizados |
23,400 | 352,392 | ||||||
Estacio Participacoes SA |
53,022 | 255,480 | ||||||
GAEC Educacao SA |
76,691 | 339,945 | ||||||
Instituto Hermes Pardini SA† |
60,000 | 389,585 | ||||||
Kroton Educacional SA |
127,288 | 559,314 | ||||||
Linx SA |
70,200 | 373,904 | ||||||
Localiza Rent a Car SA |
30,678 | 379,950 | ||||||
Magazine Luiza SA† |
42,100 | 2,816,275 | ||||||
Odontoprev SA |
207,114 | 795,568 | ||||||
Qualicorp SA |
77,237 | 489,341 | ||||||
Rumo Logistica Operadora Multimodal SA† |
981,800 | 2,707,761 | ||||||
Suzano Papel e Celulose SA, Class A (Preference Shares) |
110,800 | 479,029 | ||||||
TOTVS SA |
34,095 | 277,714 | ||||||
Transmissora Alianca de Energia Eletrica SA |
67,150 | 475,079 | ||||||
Ultrapar Participacoes SA |
26,100 | 548,679 | ||||||
Usinas Siderurgicas de Minas Gerais SA, Class A (Preference Shares)† |
224,000 | 354,973 | ||||||
12,064,128 | ||||||||
Canada — 3.8% |
| |||||||
Agnico Eagle Mines, Ltd. |
29,533 | 1,241,845 | ||||||
Alimentation Couche-Tard, Inc., Class B |
13,893 | 617,769 | ||||||
Birchcliff Energy, Ltd.† |
228,625 | 1,232,461 | ||||||
Descartes Systems Group, Inc.† |
173,797 | 3,645,524 | ||||||
Dollarama, Inc.# |
48,051 | 3,700,238 | ||||||
Enerplus Corp. |
318,200 | 2,807,788 | ||||||
Interfor Corp.† |
225,400 | 3,019,023 | ||||||
Norbord, Inc.# |
79,700 | 2,319,833 | ||||||
Parex Resources, Inc.† |
140,700 | 1,675,857 |
Security Description | Shares |
Value |
||||||
Canada (continued) |
| |||||||
Raging River Exploration, Inc.† |
199,221 | $ | 1,348,439 | |||||
TORC Oil & Gas, Ltd.# |
44,081 | 230,992 | ||||||
21,839,769 | ||||||||
Cayman Islands — 4.4% |
| |||||||
51job, Inc. ADR†# |
32,797 | 1,179,052 | ||||||
Ajisen China Holdings, Ltd. |
715,000 | 279,077 | ||||||
ASM Pacific Technology, Ltd. |
142,500 | 1,772,324 | ||||||
Hengan International Group Co., Ltd. |
116,500 | 994,983 | ||||||
Lee & Man Paper Manufacturing, Ltd. |
3,676,000 | 3,333,682 | ||||||
Midland IC&I, Ltd.† |
12,460,000 | 91,489 | ||||||
Shenguan Holdings Group, Ltd. |
764,000 | 61,018 | ||||||
Stella International Holdings, Ltd. |
410,000 | 582,025 | ||||||
Sunny Optical Technology Group Co., Ltd. |
1,278,000 | 8,223,229 | ||||||
Tingyi Cayman Islands Holding Corp.# |
696,000 | 780,018 | ||||||
Tongda Group Holdings, Ltd.# |
22,422,467 | 7,538,760 | ||||||
24,835,657 | ||||||||
Denmark — 2.7% |
| |||||||
Carlsberg A/S, Class B |
8,415 | 739,341 | ||||||
Chr. Hansen Holding A/S |
2,493 | 148,795 | ||||||
Dfds A/S |
70,940 | 3,902,441 | ||||||
DSV A/S |
29,181 | 1,436,416 | ||||||
GN Store Nord A/S |
127,623 | 2,908,273 | ||||||
Jyske Bank A/S |
35,103 | 1,807,466 | ||||||
Spar Nord Bank A/S |
138,559 | 1,536,286 | ||||||
Sydbank A/S |
43,986 | 1,522,022 | ||||||
TDC A/S† |
152,415 | 820,196 | ||||||
William Demant Holding A/S† |
17,258 | 353,431 | ||||||
15,174,667 | ||||||||
Faroe Islands — 0.6% |
| |||||||
Bakkafrost P/F |
89,924 | 3,348,753 | ||||||
Finland — 1.8% |
| |||||||
Huhtamaki Oyj |
70,419 | 2,540,193 | ||||||
Outokumpu Oyj† |
381,545 | 3,777,329 | ||||||
Tikkurila Oyj |
8,345 | 167,354 | ||||||
Valmet Oyj |
244,769 | 3,767,748 | ||||||
10,252,624 | ||||||||
France — 5.1% |
| |||||||
Alten SA† |
29,051 | 2,009,713 | ||||||
Christian Dior SE |
4,919 | 1,041,716 | ||||||
Edenred |
11,598 | 262,449 | ||||||
Elior Participations SCA#* |
260,160 | 5,838,869 | ||||||
Elis SA |
28,192 | 528,639 | ||||||
Eutelsat Communications SA |
30,561 | 600,742 | ||||||
Havas SA |
125,721 | 1,087,087 | ||||||
Legrand SA |
13,606 | 767,123 | ||||||
Neopost SA |
9,597 | 289,049 | ||||||
Remy Cointreau SA |
64,469 | 5,726,823 | ||||||
SEB SA |
5,185 | 683,053 | ||||||
Societe BIC SA |
2,831 | 350,152 | ||||||
Sodexo SA |
19,438 | 2,132,364 | ||||||
Somfy SA |
742 | 322,291 | ||||||
Tarkett SA |
53,592 | 2,241,490 | ||||||
Teleperformance |
34,571 | 3,827,260 | ||||||
Virbac SA† |
5,760 | 1,033,092 | ||||||
28,741,912 | ||||||||
Germany — 4.3% |
| |||||||
Amadeus Fire AG |
10,503 | 866,004 | ||||||
Beiersdorf AG |
11,867 | 1,082,691 | ||||||
Brenntag AG |
25,445 | 1,458,881 | ||||||
CTS Eventim AG & Co. KGaA |
45,002 | 1,636,209 |
49 |
VALIC Company II International Opportunities Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares |
Value |
||||||
COMMON STOCKS (continued) |
||||||||
Germany (continued) |
| |||||||
Deutsche Wohnen AG |
44,496 | $ | 1,528,483 | |||||
ElringKlinger AG# |
15,466 | 279,523 | ||||||
Evotec AG† |
253,021 | 1,954,891 | ||||||
FUCHS PETROLUB SE (Preference Shares) |
34,555 | 1,600,116 | ||||||
GEA Group AG |
46,896 | 1,825,302 | ||||||
Gerresheimer AG |
34,977 | 2,742,412 | ||||||
Hella KGaA Hueck & Co. |
16,754 | 662,222 | ||||||
Henkel AG & Co. KGaA (Preference Shares) |
10,880 | 1,358,947 | ||||||
Infineon Technologies AG |
50,053 | 890,839 | ||||||
LEG Immobilien AG |
23,774 | 1,959,232 | ||||||
MTU Aero Engines AG |
8,911 | 1,130,949 | ||||||
Pfeiffer Vacuum Technology AG |
2,007 | 214,748 | ||||||
Symrise AG# |
50,605 | 3,147,497 | ||||||
TAG Immobilien AG |
13,578 | 185,488 | ||||||
24,524,434 | ||||||||
Hong Kong — 0.5% |
| |||||||
China Resources Beer Holdings Co., Ltd.† |
706,000 | 1,602,458 | ||||||
Techtronic Industries Co., Ltd. |
400,000 | 1,432,454 | ||||||
3,034,912 | ||||||||
Indonesia — 0.2% |
| |||||||
Astra Agro Lestari Tbk PT |
715,000 | 801,533 | ||||||
PT Semen Indonesia Persero Tbk |
244,500 | 176,463 | ||||||
XL Axiata Tbk PT† |
549,500 | 123,201 | ||||||
1,101,197 | ||||||||
Ireland — 1.4% |
| |||||||
DCC PLC |
23,405 | 1,993,740 | ||||||
Greencore Group PLC |
343,506 | 1,106,518 | ||||||
Kerry Group PLC, Class A |
13,131 | 1,008,546 | ||||||
Paddy Power Betfair PLC |
36,715 | 4,020,477 | ||||||
8,129,281 | ||||||||
Israel — 1.2% |
| |||||||
Bezeq The Israeli Telecommunication Corp., Ltd. |
347,196 | 619,823 | ||||||
Israel Discount Bank, Ltd., Class A† |
1,336,778 | 2,959,195 | ||||||
Mizrahi Tefahot Bank, Ltd. |
184,682 | 3,083,951 | ||||||
6,662,969 | ||||||||
Italy — 3.5% |
| |||||||
Brembo SpA |
94,465 | 6,344,829 | ||||||
Buzzi Unicem SpA# |
232,773 | 5,765,499 | ||||||
Cerved Information Solutions SpA |
252,751 | 2,257,253 | ||||||
Davide Campari — Milano SpA |
71,008 | 718,407 | ||||||
FinecoBank Banca Fineco SpA |
129,409 | 740,317 | ||||||
Infrastrutture Wireless Italiane SpA* |
79,335 | 358,042 | ||||||
Italgas SpA† |
166,638 | 662,717 | ||||||
Moncler SpA |
148,679 | 2,838,338 | ||||||
19,685,402 | ||||||||
Japan — 19.6% |
| |||||||
ABC-Mart, Inc. |
21,000 | 1,265,477 | ||||||
Aeon Delight Co., Ltd. |
16,700 | 515,813 | ||||||
AEON Financial Service Co., Ltd. |
42,200 | 816,617 | ||||||
Ain Holdings, Inc. |
47,700 | 3,426,401 | ||||||
Air Water, Inc. |
22,000 | 417,696 | ||||||
Asante, Inc. |
9,800 | 148,729 | ||||||
Brother Industries, Ltd. |
6,100 | 114,947 | ||||||
Chiba Bank, Ltd.# |
147,000 | 1,027,149 | ||||||
CMK Corp.† |
264,160 | 1,502,499 | ||||||
Coca-Cola East Japan Co., Ltd. |
11,700 | 258,484 | ||||||
Coca-Cola West Co., Ltd. |
19,100 | 566,140 | ||||||
Cosmos Pharmaceutical Corp. |
4,000 | 762,651 | ||||||
Daifuku Co., Ltd. |
73,800 | 1,723,719 |
Security Description | Shares |
Value |
||||||
Japan (continued) |
| |||||||
Daiseki Co., Ltd. |
45,800 | $ | 975,153 | |||||
Daiwa Securities Group, Inc. |
138,000 | 874,960 | ||||||
Doshisha Co., Ltd. |
8,200 | 151,453 | ||||||
Ezaki Glico Co., Ltd. |
11,000 | 528,728 | ||||||
FamilyMart UNY Holdings Co., Ltd.# |
2,300 | 140,442 | ||||||
FP Corp. |
31,937 | 1,446,965 | ||||||
Fuji Seal International, Inc. |
113,600 | 2,281,202 | ||||||
Fujikura, Ltd. |
403,400 | 2,994,665 | ||||||
Fujitsu General, Ltd. |
8,000 | 156,375 | ||||||
Fukuoka Financial Group, Inc. |
902,000 | 4,207,112 | ||||||
Harmonic Drive Systems, Inc.# |
148,900 | 4,632,209 | ||||||
Heian Ceremony Service Co., Ltd. |
16,300 | 144,363 | ||||||
Hirose Electric Co., Ltd. |
4,800 | 644,301 | ||||||
Hogy Medical Co., Ltd. |
2,300 | 135,938 | ||||||
Iriso Electronics Co., Ltd. |
8,850 | 527,006 | ||||||
Japan Exchange Group, Inc. |
8,400 | 116,117 | ||||||
Japan Pure Chemical Co., Ltd. |
2,400 | 53,386 | ||||||
Jeol, Ltd. |
58,000 | 272,589 | ||||||
JGC Corp. |
15,060 | 270,382 | ||||||
Kakaku.com, Inc. |
16,700 | 241,109 | ||||||
Kansai Paint Co., Ltd. |
60,000 | 1,165,339 | ||||||
Kintetsu World Express, Inc. |
16,000 | 245,245 | ||||||
Kobayashi Pharmaceutical Co., Ltd. |
43,600 | 2,018,069 | ||||||
Koito Manufacturing Co., Ltd. |
41,400 | 2,133,660 | ||||||
Lawson, Inc.# |
8,900 | 613,957 | ||||||
Maeda Corp. |
309,000 | 2,742,205 | ||||||
Matsumotokiyoshi Holdings Co., Ltd. |
32,800 | 1,550,296 | ||||||
Meitec Corp. |
9,300 | 363,407 | ||||||
Milbon Co., Ltd.# |
14,000 | 689,127 | ||||||
Miraca Holdings, Inc. |
11,600 | 555,503 | ||||||
Mitsubishi Pencil Co., Ltd. |
3,000 | 150,608 | ||||||
MonotaRO Co., Ltd.# |
10,600 | 300,040 | ||||||
Nakanishi, Inc. |
27,000 | 1,075,482 | ||||||
NGK Spark Plug Co., Ltd.# |
48,500 | 1,097,828 | ||||||
Nihon Kohden Corp. |
30,200 | 661,016 | ||||||
Nippon Gas Co., Ltd. |
7,300 | 216,378 | ||||||
Nippon Television Holdings, Inc. |
35,300 | 627,793 | ||||||
Nissei ASB Machine Co., Ltd. |
11,000 | 237,047 | ||||||
Nitori Holdings Co., Ltd. |
10,100 | 1,175,914 | ||||||
Nomura Research Institute, Ltd. |
51,900 | 1,792,443 | ||||||
NTN Corp. |
314,000 | 1,562,384 | ||||||
Obara Corp. |
4,800 | 212,987 | ||||||
OBIC Business Consultants Co., Ltd. |
19,800 | 962,286 | ||||||
OBIC Co., Ltd. |
97,600 | 4,543,576 | ||||||
Omron Corp. |
6,000 | 257,955 | ||||||
Proto Corp. |
32,900 | 451,279 | ||||||
Rakuten, Inc. |
6,900 | 68,358 | ||||||
Ryohin Keikaku Co., Ltd. |
2,700 | 570,786 | ||||||
S Foods, Inc.# |
11,900 | 336,837 | ||||||
Santen Pharmaceutical Co., Ltd.# |
116,900 | 1,675,277 | ||||||
SCREEN Holdings Co., Ltd. |
43,300 | 2,921,483 | ||||||
Seria Co., Ltd.# |
79,167 | 6,229,350 | ||||||
Shimamura Co., Ltd. |
3,100 | 401,211 | ||||||
Shimano, Inc. |
2,000 | 295,518 | ||||||
Shizuoka Bank, Ltd. |
59,000 | 517,816 | ||||||
SK Kaken Co., Ltd. |
3,000 | 277,716 | ||||||
SMS Co., Ltd. |
108,100 | 2,393,028 | ||||||
Sony Financial Holdings, Inc.# |
50,700 | 890,843 | ||||||
Stanley Electric Co., Ltd. |
53,300 | 1,501,576 | ||||||
Start Today Co., Ltd. |
456,400 | 9,538,717 | ||||||
Sumco Corp. |
206,600 | 3,037,992 | ||||||
Sundrug Co., Ltd. |
16,200 | 1,065,628 | ||||||
Taiko Pharmaceutical Co., Ltd.# |
9,600 | 160,648 | ||||||
TechnoPro Holdings, Inc. |
101,100 | 3,541,132 | ||||||
Temp Holdings Co., Ltd. |
294,300 | 4,985,116 |
50 |
VALIC Company II International Opportunities Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares |
Value |
||||||
COMMON STOCKS (continued) |
||||||||
Japan (continued) |
| |||||||
Terumo Corp. |
21,200 | $ | 735,004 | |||||
THK Co., Ltd. |
56,400 | 1,466,415 | ||||||
Toshiba Plant Systems & Services Corp.# |
17,000 | 238,782 | ||||||
Trusco Nakayama Corp.# |
121,500 | 2,741,577 | ||||||
Tsumura & Co. |
11,000 | 326,049 | ||||||
Unicharm Corp. |
67,700 | 1,521,585 | ||||||
USS Co., Ltd. |
67,200 | 1,150,855 | ||||||
Yamato Holdings Co., Ltd. |
85,600 | 1,870,178 | ||||||
Zojirushi Corp.# |
28,600 | 381,859 | ||||||
111,583,937 | ||||||||
Jersey — 0.6% |
| |||||||
boohoo.com plc†# |
1,146,529 | 2,173,130 | ||||||
Sanne Group PLC† |
176,836 | 1,424,081 | ||||||
3,597,211 | ||||||||
Luxembourg — 0.8% |
| |||||||
APERAM SA |
55,839 | 2,840,071 | ||||||
B&M European Value Retail SA |
245,539 | 908,547 | ||||||
Globant SA†# |
16,287 | 591,218 | ||||||
4,339,836 | ||||||||
Malaysia — 0.2% |
| |||||||
Public Bank Bhd |
260,900 | 1,172,875 | ||||||
Mauritius — 0.1% |
| |||||||
MakeMyTrip, Ltd.†# |
22,118 | 721,047 | ||||||
Mexico — 0.6% |
| |||||||
Alsea SAB de CV |
136,792 | 384,814 | ||||||
Arca Continental SAB de CV |
69,943 | 392,508 | ||||||
Bolsa Mexicana de Valores SAB de CV# |
158,435 | 228,290 | ||||||
Concentradora Fibra Hotelera Mexicana SA de CV |
535,782 | 400,006 | ||||||
Elementia SAB de CV†#* |
350,125 | 400,810 | ||||||
Genomma Lab Internacional SAB de CV, Class B† |
536,502 | 610,696 | ||||||
Grupo Aeroportuario del Sureste SAB de CV ADR |
2,523 | 399,441 | ||||||
Grupo Financiero Inbursa SAB de CV, Class O |
274,733 | 393,951 | ||||||
3,210,516 | ||||||||
Netherlands — 1.3% |
| |||||||
Aalberts Industries NV |
13,842 | 477,467 | ||||||
ASM International NV |
25,401 | 1,291,132 | ||||||
Corbion NV |
68,237 | 1,756,653 | ||||||
IMCD Group NV |
12,479 | 592,003 | ||||||
Wessanen |
260,747 | 3,473,658 | ||||||
7,590,913 | ||||||||
New Zealand — 0.4% |
| |||||||
Fisher & Paykel Healthcare Corp., Ltd. |
361,746 | 2,373,754 | ||||||
Norway — 1.5% |
| |||||||
Aker Solutions ASA†# |
167,744 | 971,028 | ||||||
Marine Harvest ASA |
83,262 | 1,455,980 | ||||||
Norway Royal Salmon ASA |
60,380 | 1,231,584 | ||||||
TGS Nopec Geophysical Co. ASA |
187,351 | 4,111,956 | ||||||
XXL ASA* |
58,572 | 653,245 | ||||||
8,423,793 | ||||||||
Philippines — 0.1% |
| |||||||
Jollibee Foods Corp. |
97,450 | 391,624 | ||||||
Portugal — 0.1% |
| |||||||
NOS SGPS SA |
108,235 | 640,972 | ||||||
Russia — 0.5% |
| |||||||
Aeroflot PJSC† |
1,006,300 | 2,869,352 | ||||||
Singapore — 1.1% |
| |||||||
Ascendas India Trust |
1,845,600 | 1,435,496 |
Security Description | Shares |
Value |
||||||
Singapore (continued) |
| |||||||
City Developments, Ltd. |
175,600 | $ | 1,186,622 | |||||
Singapore Technologies Engineering, Ltd. |
320,300 | 841,090 | ||||||
Super Group, Ltd. |
1,948,700 | 1,807,700 | ||||||
Venture Corp., Ltd. |
118,963 | 912,553 | ||||||
6,183,461 | ||||||||
South Africa — 0.4% |
| |||||||
Clicks Group, Ltd. |
149,084 | 1,460,438 | ||||||
Woolworths Holdings, Ltd.# |
116,240 | 620,301 | ||||||
2,080,739 | ||||||||
South Korea — 1.4% |
| |||||||
Coway Co., Ltd. |
16,296 | 1,289,845 | ||||||
Mando Corp. |
18,927 | 4,444,058 | ||||||
Orion Corp. |
1,517 | 957,894 | ||||||
Samsung Fire & Marine Insurance Co., Ltd. |
5,084 | 1,146,513 | ||||||
TK Corp. |
47,874 | 397,133 | ||||||
8,235,443 | ||||||||
Spain — 1.4% |
| |||||||
Amadeus IT Group SA |
98,886 | 4,599,478 | ||||||
Cellnex Telecom SAU#* |
71,035 | 1,069,742 | ||||||
CIE Automotive SA |
75,662 | 1,454,035 | ||||||
Viscofan SA# |
13,939 | 729,857 | ||||||
7,853,112 | ||||||||
Sweden — 2.0% |
| |||||||
Axactor AB†# |
8,089,896 | 2,508,944 | ||||||
Saab AB, Series B |
11,401 | 452,170 | ||||||
Scandic Hotels Group AB†* |
340,187 | 3,080,926 | ||||||
SSAB AB, Class A† |
1,062,294 | 4,204,879 | ||||||
Swedish Match AB |
27,538 | 857,874 | ||||||
11,104,793 | ||||||||
Switzerland — 4.7% |
| |||||||
Autoneum Holding AG |
14,099 | 3,751,638 | ||||||
Coca-Cola HBC AG |
18,307 | 441,831 | ||||||
DKSH Holding AG |
2,912 | 235,430 | ||||||
Forbo Holding AG |
2,221 | 3,029,591 | ||||||
Geberit AG |
2,265 | 980,106 | ||||||
Georg Fischer AG |
5,088 | 4,409,921 | ||||||
Julius Baer Group, Ltd. |
15,745 | 770,515 | ||||||
Logitech International SA |
118,904 | 3,439,201 | ||||||
Lonza Group AG |
2,079 | 382,949 | ||||||
Sika AG |
460 | 2,590,034 | ||||||
Sonova Holding AG |
9,045 | 1,187,868 | ||||||
Temenos Group AG |
67,913 | 5,250,604 | ||||||
26,469,688 | ||||||||
Taiwan — 1.7% |
| |||||||
Advantech Co., Ltd. |
53,235 | 453,104 | ||||||
Chroma ATE, Inc. |
311,000 | 949,495 | ||||||
E.Sun Financial Holding Co., Ltd. |
2,856,021 | 1,733,683 | ||||||
Ennoconn Corp. |
138,000 | 2,178,463 | ||||||
Voltronic Power Technology Corp. |
37,950 | 558,315 | ||||||
Wistron NeWeb Corp. |
954,000 | 2,785,288 | ||||||
Yuanta Financial Holding Co., Ltd. |
2,209,807 | 935,033 | ||||||
9,593,381 | ||||||||
Thailand — 1.6% |
| |||||||
AEON Thana Sinsap Thailand PCL |
159,500 | 461,518 | ||||||
Precious Shipping PCL† |
766,350 | 232,723 | ||||||
PTT Global Chemical PCL |
765,300 | 1,562,150 | ||||||
Taokaenoi Food & Marketing Public Co., Ltd. |
3,698,500 | 2,966,810 | ||||||
Thai Beverage PCL |
1,721,200 | 1,166,790 | ||||||
Tisco Financial Group PCL |
1,512,100 | 2,967,408 | ||||||
9,357,399 | ||||||||
51 |
VALIC Company II International Opportunities Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares |
Value |
||||||
COMMON STOCKS (continued) |
||||||||
Turkey — 0.1% |
| |||||||
Ford Otomotiv Sanayi AS |
16,605 | $ | 167,095 | |||||
Tofas Turk Otomobil Fabrikasi AS |
28,223 | 210,794 | ||||||
377,889 | ||||||||
United Kingdom — 16.0% |
| |||||||
Abcam PLC |
438,304 | 4,685,437 | ||||||
Admiral Group PLC |
20,290 | 460,233 | ||||||
Ashtead Group PLC |
29,822 | 612,797 | ||||||
Auto Trader Group PLC* |
226,176 | 1,109,131 | ||||||
Babcock International Group PLC |
88,542 | 1,041,543 | ||||||
Bellway PLC |
36,201 | 1,170,616 | ||||||
Booker Group PLC |
1,265,172 | 3,125,649 | ||||||
Britvic PLC |
41,637 | 326,266 | ||||||
Bunzl PLC |
295,173 | 8,259,287 | ||||||
Burberry Group PLC |
28,969 | 620,431 | ||||||
Card Factory PLC |
40,296 | 132,003 | ||||||
Cobham PLC |
231,053 | 343,469 | ||||||
Compass Group PLC |
166,003 | 3,085,653 | ||||||
Croda International PLC |
83,837 | 3,649,343 | ||||||
Dignity PLC |
89,112 | 2,869,412 | ||||||
Domino’s Pizza Group PLC |
1,074,777 | 5,121,167 | ||||||
Electrocomponents PLC |
40,695 | 239,959 | ||||||
Elementis PLC |
110,305 | 410,068 | ||||||
EMIS Group PLC |
31,072 | 347,965 | ||||||
Exova Group PLC |
163,726 | 428,666 | ||||||
Fevertree Drinks PLC |
411,770 | 7,183,886 | ||||||
GKN PLC |
137,054 | 612,059 | ||||||
Halma PLC |
79,165 | 955,305 | ||||||
Hargreaves Lansdown PLC |
48,932 | 810,576 | ||||||
Howden Joinery Group PLC |
137,562 | 730,399 | ||||||
Hunting PLC |
272,737 | 1,791,965 | ||||||
IG Group Holdings PLC |
77,628 | 515,819 | ||||||
IMI PLC |
34,042 | 524,211 | ||||||
Intertek Group PLC |
42,842 | 1,874,971 | ||||||
Jardine Lloyd Thompson Group PLC |
84,516 | 1,080,179 | ||||||
John Wood Group PLC |
44,538 | 417,527 | ||||||
Just Eat PLC† |
225,277 | 1,399,073 | ||||||
Kazakhmys PLC† |
550,451 | 3,599,554 | ||||||
Keywords Studios PLC† |
196,898 | 1,520,287 | ||||||
Meggitt PLC |
109,047 | 636,638 | ||||||
Merlin Entertainments PLC* |
193,094 | 1,178,836 | ||||||
Micro Focus International PLC |
92,461 | 2,505,709 | ||||||
Moneysupermarket.com Group PLC |
205,879 | 842,268 | ||||||
Next PLC |
21,581 | 1,024,824 | ||||||
PZ Cussons PLC |
23,146 | 91,677 | ||||||
Rathbone Brothers PLC |
50,030 | 1,404,244 | ||||||
Rightmove PLC |
51,260 | 2,500,351 | ||||||
Rotork PLC |
109,304 | 335,006 | ||||||
RPC Group PLC |
445,646 | 5,048,707 | ||||||
Scapa Group PLC |
360,799 | 1,663,196 | ||||||
Schroders PLC |
66,140 | 2,522,006 | ||||||
SIG PLC |
82,059 | 114,042 | ||||||
Smith & Nephew PLC |
103,476 | 1,554,902 | ||||||
Spectris PLC |
33,849 | 1,020,637 | ||||||
Spirax-Sarco Engineering PLC |
15,927 | 879,257 | ||||||
Stagecoach Group PLC |
263,786 | 679,514 | ||||||
Tate & Lyle PLC |
27,936 | 257,903 | ||||||
TechnipFMC PLC† |
25,762 | 830,913 | ||||||
Travis Perkins PLC |
22,114 | 417,639 | ||||||
Victrex PLC |
51,864 | 1,229,833 | ||||||
Whitbread PLC |
40,582 | 1,926,124 | ||||||
ZPG PLC* |
310,145 | 1,429,694 | ||||||
91,148,826 | ||||||||
Security Description | Shares/ Principal Amount |
Value (Note 2) |
||||||
United States — 1.0% |
| |||||||
Autoliv, Inc. SDR |
4,614 | $ | 484,576 | |||||
EPAM Systems, Inc.† |
38,914 | 2,865,238 | ||||||
Gran Tierra Energy, Inc.† |
262,973 | 700,892 | ||||||
PriceSmart, Inc. |
4,054 | 358,373 | ||||||
Yum China Holdings, Inc.† |
51,970 | 1,381,882 | ||||||
5,790,961 | ||||||||
Total Common Stocks |
||||||||
(cost $461,156,944) |
546,482,012 | |||||||
EQUITY CERTIFICATES — 1.3% |
| |||||||
Deutsche Bank AG — MOIL, Ltd. |
229,293 | 1,219,860 | ||||||
Merrill Lynch — CESC, Ltd. |
129,483 | 1,630,989 | ||||||
Merrill Lynch — Dabur India, Ltd. |
276,493 | 1,147,517 | ||||||
Merrill Lynch — Federal Bank, Ltd. |
1,059,008 | 1,386,482 | ||||||
Merrill Lynch — Shriram Transport Finance Co., Ltd.† |
97,970 | 1,364,440 | ||||||
Merrill Lynch — Titan Co., Ltd.† |
114,018 | 747,146 | ||||||
Total Equity Certificates |
||||||||
(cost $5,312,886) |
7,496,434 | |||||||
WARRANTS — 0.0% |
| |||||||
Precious Shipping PCL |
27,795 | 1,433 | ||||||
Total Long-Term Investment Securities |
||||||||
(cost $466,469,830) |
553,979,879 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 4.8% |
| |||||||
Registered Investment Companies — 4.3% |
| |||||||
State Street Navigator Securities Lending Government Money Market Portfolio 0.50%(1)(3) |
24,704,492 | 24,704,492 | ||||||
U.S. Government Agencies — 0.5% |
| |||||||
Federal Home Loan Bank |
$ |
184,000 |
|
|
184,000 |
| ||
0.36% due 03/01/2017 |
2,502,000 | 2,502,000 | ||||||
Total Short-Term Investment Securities |
2,686,000 | |||||||
(cost $27,390,492) |
27,390,492 | |||||||
REPURCHASE AGREEMENTS — 2.1% |
| |||||||
Agreement with Fixed Income Clearing Corp., bearing interest at 0.03%, dated 02/28/2017, to be repurchased 03/01/2017 in the amount
of $11,982,010 collateralized by $12,120,000 of United States Treasury Notes, bearing interest at 3.00% due 05/15/2045 and having an approximate value of $12,226,389 |
11,982,000 | 11,982,000 | ||||||
TOTAL INVESTMENTS — |
||||||||
(cost $505,842,322)(2) |
104.4 | % | 593,352,371 | |||||
Liabilities in excess of other assets |
(4.4 | ) | (25,108,853 | ) | ||||
NET ASSETS — |
100.0 | % | $ | 568,243,518 | ||||
# | The security or a portion thereof is out on loan (see Note 2). |
† | Non-income producing security |
* | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. At February 28, 2017, the aggregate value of these securities was $15,119,295 representing 2.7% of net assets. Unless otherwise indicated, these securities are not considered to be illiquid. |
(1) | At February 28, 2017, the Fund had loaned securities with a total value of $40,181,890. This was secured by collateral of $24,704,492, which was received in cash and subsequently invested in short-term investments currently value at $24,704,492 as |
52 |
VALIC Company II International Opportunities Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
reported in the Portfolio of Investments. Additional collateral of $18,032,112 was received in the form of short-term pooled securities, which the Fund cannot sell or repledge and accordingly is not reflected in the Fund’s assets and liabilities. |
The components of the fixed income pooled securities referenced above are as follows:
Securities |
Coupon Range |
Maturity Date Range |
Value as of February 28, 2017 |
|||||
Federal Home Loan Mtg. Corp. |
3.00% to 3.50% | 05/01/2032 to 12/01/2041 | $ | 2,071 | ||||
Federal National Mtg. Assoc. |
2.50% to 4.40% | 01/25/2032 to 10/01/2041 | 10,532 | |||||
Government National Mtg. Assoc. |
2.50% to 3.50% | 05/20/2046 to 09/20/2046 | 5,795 | |||||
United States Treasury Bills |
0.00% | 03/09/2017 to 12/07/2017 | 126,417 | |||||
United States Treasury Notes/Bonds |
0.13% to 4.50% | 04/15/2017 to 11/15/2046 | 17,887,297 |
(2) | See Note 5 for cost of investments on a tax basis. |
(3) | The rate shown is a 7-day yield as of February 28, 2017. |
(4) | Illiquid Security. At February 28,2017 the aggregate value of these securities was $0 representing 0.0% of net assets. |
(5) | Fair valued security. Securities are classified as Level 3 based on the securities valuation inputs (see Note 2). |
ADR—American Depositary Receipt
BR—Bearer Shares
SDR—Swedish Depositary Receipt
THB—Thai Baht
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 - Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Common Stocks: |
||||||||||||||||
Bermuda |
$ | 11,527,761 | $ | — | $ | 0 | $ | 11,527,761 | ||||||||
Russia |
— | 2,869,352 | — | 2,869,352 | ||||||||||||
Other Countries |
532,084,899 | — | — | 532,084,899 | ||||||||||||
Equity Certificates |
— | 7,496,434 | — | 7,496,434 | ||||||||||||
Warrants |
1,433 | — | — | 1,433 | ||||||||||||
Short-Term Investment Securities: |
||||||||||||||||
Registered Investment Companies |
24,704,492 | — | — | 24,704,492 | ||||||||||||
U.S. Government Agencies |
— | 2,686,000 | — | 2,686,000 | ||||||||||||
Repurchase Agreements |
— | 11,982,000 | — | 11,982,000 | ||||||||||||
Total Investments at Value |
$ | 568,318,585 | $ | 25,033,786 | $ | 0 | $ | 593,352,371 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
At the beginning and the end of the reporting period, Level 3 investments in securities were not considered a material portion of the Fund.
See Notes to Financial Statements
53 |
VALIC Company II Large Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Diversified Banking Institutions |
7.7 | % | ||
Oil Companies — Exploration & Production |
5.9 | |||
Medical — Drugs |
5.1 | |||
Banks — Super Regional |
4.5 | |||
Insurance — Reinsurance |
4.5 | |||
Food — Misc./Diversified |
4.2 | |||
Insurance — Multi-line |
3.2 | |||
Aerospace/Defense |
3.0 | |||
Aerospace/Defense — Equipment |
2.8 | |||
Oil Refining & Marketing |
2.7 | |||
Telephone — Integrated |
2.5 | |||
Oil — Field Services |
2.1 | |||
Medical — HMO |
2.1 | |||
Real Estate Investment Trusts |
1.9 | |||
Networking Products |
1.8 | |||
Advertising Agencies |
1.8 | |||
Beverages — Non-alcoholic |
1.6 | |||
Building Products — Cement |
1.5 | |||
Brewery |
1.5 | |||
Enterprise Software/Service |
1.4 | |||
Medical — Wholesale Drug Distribution |
1.4 | |||
U.S. Government Agencies |
1.3 | |||
Instruments — Controls |
1.3 | |||
Insurance — Life/Health |
1.3 | |||
Electronic Components — Semiconductors |
1.2 | |||
Investment Management/Advisor Services |
1.2 | |||
Finance — Consumer Loans |
1.2 | |||
Registered Investment Companies |
1.2 | |||
Airlines |
1.1 | |||
Web Portals/ISP |
1.1 | |||
Finance — Credit Card |
1.1 | |||
Electric — Integrated |
1.1 | |||
Agricultural Chemicals |
1.1 | |||
Computers |
1.0 | |||
Containers — Paper/Plastic |
1.0 | |||
Medical Labs & Testing Services |
1.0 | |||
Cosmetics & Toiletries |
1.0 | |||
Chemicals — Diversified |
0.9 | |||
Diagnostic Equipment |
0.9 | |||
Multimedia |
0.8 | |||
Cable/Satellite TV |
0.8 | |||
Gold Mining |
0.8 | |||
Retail — Drug Store |
0.8 | |||
Electronic Components — Misc. |
0.8 | |||
Electric — Distribution |
0.8 | |||
Oil Companies — Integrated |
0.7 | |||
Finance — Investment Banker/Broker |
0.7 | |||
Insurance — Property/Casualty |
0.7 | |||
Medical Instruments |
0.7 | |||
Commercial Services |
0.6 | |||
Containers — Metal/Glass |
0.6 | |||
E-Commerce/Products |
0.6 | |||
Computer Services |
0.5 | |||
Pipelines |
0.5 | |||
Banks — Commercial |
0.5 | |||
Exchange — Traded Funds |
0.5 | |||
Rubber — Tires |
0.5 | |||
Finance — Commercial |
0.5 | |||
Vitamins & Nutrition Products |
0.4 | |||
Computer Data Security |
0.4 | |||
Time Deposits |
0.4 | |||
Transport — Rail |
0.4 | |||
Retail — Office Supplies |
0.4 | |||
Electric Products — Misc. |
0.4 | |||
Commercial Services — Finance |
0.3 | |||
Cellular Telecom |
0.3 | |||
Retail — Discount |
0.3 | |||
Non-Hazardous Waste Disposal |
0.3 | |||
Applications Software |
0.3 |
Food — Confectionery |
0.3 | |||
Diversified Manufacturing Operations |
0.3 | |||
Semiconductor Components — Integrated Circuits |
0.2 | |||
Banks — Fiduciary |
0.2 | |||
Engineering/R&D Services |
0.2 | |||
Distribution/Wholesale |
0.2 | |||
Computers — Memory Devices |
0.2 | |||
101.1 | % | |||
* | Calculated as a percentage of net assets |
54 |
VALIC Company II Large Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS — 97.7% |
| |||||||
Advertising Agencies — 1.8% |
| |||||||
Omnicom Group, Inc. |
53,014 | $ | 4,511,491 | |||||
Aerospace/Defense — 3.0% |
| |||||||
General Dynamics Corp. |
16,890 | 3,205,891 | ||||||
Raytheon Co. |
27,354 | 4,216,619 | ||||||
7,422,510 | ||||||||
Aerospace/Defense - Equipment — 2.8% |
| |||||||
Harris Corp. |
12,551 | 1,379,355 | ||||||
L3 Technologies, Inc. |
8,121 | 1,366,927 | ||||||
United Technologies Corp. |
37,197 | 4,186,522 | ||||||
6,932,804 | ||||||||
Agricultural Chemicals — 1.1% |
| |||||||
CF Industries Holdings, Inc.# |
63,737 | 2,002,617 | ||||||
Potash Corp. of Saskatchewan, Inc. |
38,743 | 675,290 | ||||||
2,677,907 | ||||||||
Airlines — 1.1% |
| |||||||
Delta Air Lines, Inc. |
56,293 | 2,810,709 | ||||||
Applications Software — 0.3% |
| |||||||
Microsoft Corp. |
11,434 | 731,547 | ||||||
Banks - Commercial — 0.5% |
| |||||||
BB&T Corp. |
26,803 | 1,292,441 | ||||||
Banks - Fiduciary — 0.2% |
| |||||||
Bank of New York Mellon Corp. |
10,676 | 503,267 | ||||||
Banks - Super Regional — 4.5% |
| |||||||
Capital One Financial Corp. |
11,200 | 1,051,232 | ||||||
PNC Financial Services Group, Inc.# |
33,603 | 4,275,310 | ||||||
SunTrust Banks, Inc. |
30,841 | 1,834,731 | ||||||
US Bancorp |
35,129 | 1,932,095 | ||||||
Wells Fargo & Co. |
37,810 | 2,188,443 | ||||||
11,281,811 | ||||||||
Beverages - Non-alcoholic — 1.6% |
| |||||||
Coca-Cola Co. |
44,008 | 1,846,576 | ||||||
Coca-Cola European Partners PLC |
35,775 | 1,241,035 | ||||||
PepsiCo, Inc. |
8,591 | 948,274 | ||||||
4,035,885 | ||||||||
Brewery — 1.5% |
| |||||||
Molson Coors Brewing Co., Class B |
35,782 | 3,592,155 | ||||||
Building Products - Cement — 1.5% |
| |||||||
Martin Marietta Materials, Inc. |
8,625 | 1,862,569 | ||||||
Vulcan Materials Co. |
14,722 | 1,775,620 | ||||||
3,638,189 | ||||||||
Cable/Satellite TV — 0.8% |
| |||||||
Comcast Corp., Class A# |
54,102 | 2,024,497 | ||||||
Cellular Telecom — 0.3% |
| |||||||
Vodafone Group PLC ADR# |
33,039 | 839,521 | ||||||
Chemicals - Diversified — 0.9% |
| |||||||
Dow Chemical Co. |
14,042 | 874,255 | ||||||
Westlake Chemical Corp. |
20,521 | 1,301,647 | ||||||
2,175,902 | ||||||||
Commercial Services — 0.6% |
| |||||||
Quanta Services, Inc.† |
39,759 | 1,483,806 | ||||||
Commercial Services - Finance — 0.3% |
| |||||||
Total System Services, Inc. |
15,689 | 854,737 | ||||||
Computer Data Security — 0.4% |
| |||||||
Check Point Software Technologies, Ltd.†# |
10,474 | 1,035,983 | ||||||
Security Description | Shares | Value (Note 2) |
||||||
Computer Services — 0.5% |
| |||||||
Teradata Corp.†# |
43,463 | $ | 1,351,699 | |||||
Computers — 1.0% |
| |||||||
Apple, Inc. |
18,773 | 2,571,713 | ||||||
Computers - Memory Devices — 0.2% |
| |||||||
Western Digital Corp. |
5,260 | 404,389 | ||||||
Containers - Metal/Glass — 0.6% |
| |||||||
Crown Holdings, Inc.† |
26,082 | 1,397,734 | ||||||
Containers - Paper/Plastic — 1.0% |
| |||||||
Packaging Corp. of America |
27,262 | 2,519,827 | ||||||
Cosmetics & Toiletries — 1.0% |
| |||||||
Procter & Gamble Co. |
14,325 | 1,304,578 | ||||||
Unilever PLC ADR# |
22,718 | 1,078,650 | ||||||
2,383,228 | ||||||||
Diagnostic Equipment — 0.9% |
| |||||||
Abbott Laboratories |
47,000 | 2,118,760 | ||||||
Distribution/Wholesale — 0.2% |
| |||||||
Fastenal Co.# |
9,104 | 455,473 | ||||||
Diversified Banking Institutions — 7.7% |
| |||||||
Bank of America Corp. |
267,212 | 6,594,792 | ||||||
Citigroup, Inc. |
27,345 | 1,635,504 | ||||||
Goldman Sachs Group, Inc. |
10,681 | 2,649,529 | ||||||
JPMorgan Chase & Co. |
91,087 | 8,254,304 | ||||||
19,134,129 | ||||||||
Diversified Manufacturing Operations — 0.3% |
| |||||||
General Electric Co. |
21,632 | 644,850 | ||||||
E-Commerce/Products — 0.6% |
| |||||||
eBay, Inc.† |
40,444 | 1,371,052 | ||||||
Electric Products - Misc. — 0.4% |
| |||||||
AMETEK, Inc.# |
16,046 | 866,003 | ||||||
Electric - Distribution — 0.8% |
| |||||||
PPL Corp. |
50,769 | 1,872,361 | ||||||
Electric - Integrated — 1.1% |
| |||||||
FirstEnergy Corp. |
43,441 | 1,408,792 | ||||||
Great Plains Energy, Inc. |
44,132 | 1,282,476 | ||||||
2,691,268 | ||||||||
Electronic Components - Misc. — 0.8% |
| |||||||
Corning, Inc. |
70,404 | 1,943,854 | ||||||
Electronic Components - Semiconductors — 1.2% |
| |||||||
Texas Instruments, Inc. |
39,251 | 3,007,412 | ||||||
Engineering/R&D Services — 0.2% |
| |||||||
Fluor Corp. |
8,584 | 475,468 | ||||||
Enterprise Software/Service — 1.4% |
| |||||||
Oracle Corp. |
83,565 | 3,559,033 | ||||||
Finance - Commercial — 0.5% |
| |||||||
CIT Group, Inc. |
28,280 | 1,213,212 | ||||||
Finance - Consumer Loans — 1.2% |
| |||||||
Synchrony Financial |
79,780 | 2,891,227 | ||||||
Finance - Credit Card — 1.1% |
| |||||||
American Express Co. |
34,228 | 2,740,294 | ||||||
Finance - Investment Banker/Broker — 0.7% |
| |||||||
Raymond James Financial, Inc. |
23,099 | 1,814,657 | ||||||
Food - Confectionery — 0.3% |
| |||||||
J.M. Smucker Co. |
4,623 | 655,218 | ||||||
55 |
VALIC Company II Large Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS (continued) |
| |||||||
Food - Misc./Diversified — 4.2% |
| |||||||
Conagra Brands, Inc. |
82,116 | $ | 3,384,000 | |||||
General Mills, Inc. |
8,822 | 532,584 | ||||||
Kellogg Co. |
43,418 | 3,215,971 | ||||||
Kraft Heinz Co. |
14,565 | 1,332,843 | ||||||
Lamb Weston Holdings, Inc. |
22,687 | 889,104 | ||||||
Mondelez International, Inc., Class A |
25,682 | 1,127,954 | ||||||
10,482,456 | ||||||||
Gold Mining — 0.8% |
| |||||||
Newmont Mining Corp. |
58,663 | 2,008,621 | ||||||
Instruments - Controls — 1.3% |
| |||||||
Honeywell International, Inc. |
26,029 | 3,240,610 | ||||||
Insurance - Life/Health — 1.3% |
| |||||||
Prudential Financial, Inc. |
28,783 | 3,181,673 | ||||||
Insurance - Multi-line — 3.2% |
| |||||||
Allstate Corp. |
22,474 | 1,846,464 | ||||||
Chubb, Ltd. |
20,343 | 2,810,792 | ||||||
Hartford Financial Services Group, Inc. |
17,650 | 862,908 | ||||||
Voya Financial, Inc. |
61,181 | 2,522,493 | ||||||
8,042,657 | ||||||||
Insurance - Property/Casualty — 0.7% |
| |||||||
XL Group, Ltd. |
44,810 | 1,814,357 | ||||||
Insurance - Reinsurance — 4.5% |
||||||||
Athene Holding, Ltd., Class A† |
28,691 | 1,491,071 | ||||||
Berkshire Hathaway, Inc., Class B† |
56,888 | 9,751,741 | ||||||
11,242,812 | ||||||||
Investment Management/Advisor Services — 1.2% |
| |||||||
Affiliated Managers Group, Inc. |
6,690 | 1,123,452 | ||||||
Ameriprise Financial, Inc. |
13,892 | 1,826,798 | ||||||
2,950,250 | ||||||||
Medical Instruments — 0.7% |
| |||||||
Boston Scientific Corp.† |
69,608 | 1,708,876 | ||||||
Medical Labs & Testing Services — 1.0% |
| |||||||
Laboratory Corp. of America Holdings† |
17,023 | 2,421,692 | ||||||
Medical - Drugs — 5.1% |
| |||||||
Bristol-Myers Squibb Co. |
16,454 | 933,106 | ||||||
Eli Lilly & Co. |
18,298 | 1,515,258 | ||||||
Johnson & Johnson |
15,549 | 1,900,243 | ||||||
Merck & Co., Inc. |
70,292 | 4,630,134 | ||||||
Novartis AG ADR |
17,622 | 1,377,512 | ||||||
Pfizer, Inc. |
63,836 | 2,178,084 | ||||||
12,534,337 | ||||||||
Medical - HMO — 2.1% |
| |||||||
Aetna, Inc. |
10,975 | 1,413,141 | ||||||
Humana, Inc. |
6,078 | 1,283,977 | ||||||
UnitedHealth Group, Inc. |
15,412 | 2,548,837 | ||||||
5,245,955 | ||||||||
Medical - Wholesale Drug Distribution — 1.4% |
| |||||||
AmerisourceBergen Corp.# |
37,663 | 3,446,541 | ||||||
Multimedia — 0.8% |
| |||||||
Time Warner, Inc. |
20,800 | 2,042,768 | ||||||
Networking Products — 1.8% |
||||||||
Cisco Systems, Inc. |
132,288 | 4,521,604 | ||||||
Non-Hazardous Waste Disposal — 0.3% |
| |||||||
Republic Services, Inc. |
12,044 | 746,126 | ||||||
Security Description | Shares | Value (Note 2) |
||||||
Oil Companies - Exploration & Production — 5.9% |
||||||||
Anadarko Petroleum Corp. |
49,414 | $ | 3,194,616 | |||||
EOG Resources, Inc. |
45,546 | 4,417,507 | ||||||
Noble Energy, Inc. |
32,253 | 1,174,332 | ||||||
Occidental Petroleum Corp. |
88,777 | 5,819,332 | ||||||
14,605,787 | ||||||||
Oil Companies - Integrated — 0.7% |
| |||||||
Exxon Mobil Corp. |
22,726 | 1,848,078 | ||||||
Oil Refining & Marketing — 2.7% |
| |||||||
HollyFrontier Corp. |
25,841 | 756,624 | ||||||
Marathon Petroleum Corp. |
27,491 | 1,363,554 | ||||||
Phillips 66 |
35,520 | 2,777,309 | ||||||
Valero Energy Corp. |
27,227 | 1,850,075 | ||||||
6,747,562 | ||||||||
Oil - Field Services — 2.1% |
| |||||||
Halliburton Co. |
73,055 | 3,905,520 | ||||||
Keane Group, Inc.†# |
28,791 | 504,419 | ||||||
Schlumberger, Ltd. |
10,622 | 853,584 | ||||||
5,263,523 | ||||||||
Pipelines — 0.5% |
| |||||||
Kinder Morgan, Inc.# |
62,455 | 1,330,916 | ||||||
Real Estate Investment Trusts — 1.9% |
| |||||||
Equity Residential |
27,339 | 1,724,271 | ||||||
Uniti Group, Inc.†# |
75,811 | 2,196,245 | ||||||
Weyerhaeuser Co. |
23,027 | 776,470 | ||||||
4,696,986 | ||||||||
Retail - Discount — 0.3% |
| |||||||
Target Corp. |
12,931 | 759,955 | ||||||
Retail - Drug Store — 0.8% |
| |||||||
Walgreens Boots Alliance, Inc. |
22,926 | 1,980,348 | ||||||
Retail - Office Supplies — 0.4% |
||||||||
Staples, Inc. |
97,896 | 880,085 | ||||||
Rubber - Tires — 0.5% |
| |||||||
Goodyear Tire & Rubber Co. |
34,901 | 1,223,280 | ||||||
Semiconductor Components - Integrated Circuits — 0.2% |
| |||||||
Analog Devices, Inc. |
6,451 | 528,530 | ||||||
Telephone - Integrated — 2.5% |
| |||||||
AT&T, Inc.# |
118,022 | 4,932,140 | ||||||
Verizon Communications, Inc. |
24,621 | 1,221,940 | ||||||
6,154,080 | ||||||||
Transport - Rail — 0.4% |
| |||||||
CSX Corp. |
20,422 | 991,692 | ||||||
Vitamins & Nutrition Products — 0.4% |
||||||||
Mead Johnson Nutrition Co. |
12,374 | 1,086,313 | ||||||
Web Portals/ISP — 1.1% |
| |||||||
Alphabet, Inc., Class A† |
3,275 | 2,767,146 | ||||||
Total Common Stocks |
| |||||||
(cost $210,024,533) |
242,423,639 | |||||||
EXCHANGE-TRADED FUNDS — 0.5% |
| |||||||
iShares Russell 1000 Value ETF# |
| |||||||
(cost $1,219,024) |
10,859 | 1,266,702 | ||||||
Total Long-Term Investment Securities |
| |||||||
(cost $211,243,557) |
243,690,341 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 2.9% |
| |||||||
Registered Investment Companies — 1.2% |
| |||||||
State Street Navigator Securities Lending Government Money Market Portfolio 0.50%(1)(2) |
2,848,330 | 2,848,330 | ||||||
56 |
VALIC Company II Large Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal |
Value (Note 2) |
||||||
SHORT-TERM INVESTMENT SECURITIES (continued) |
|
|||||||
Time Deposits — 0.4% |
| |||||||
Euro Time Deposit with State Street Bank and Trust Co. 0.07% due 03/01/2017 |
$ | 992,000 | $ | 992,000 | ||||
U.S. Government Agencies — 1.3% |
| |||||||
Federal Home Loan Bank |
3,300,000 | 3,300,000 | ||||||
Total Short-Term Investment Securities |
| |||||||
(cost $7,140,330) |
7,140,330 | |||||||
TOTAL INVESTMENTS |
| |||||||
(cost $218,383,887)(3) |
101.1 | % | 250,830,671 | |||||
Liabilities in excess of other assets |
(1.1 | ) | (2,650,981 | ) | ||||
NET ASSETS |
100.0 | % | $ | 248,179,690 | ||||
# | The security or a portion thereof is out on loan (see Note 2). |
† | Non-income producing security |
(1) | At February 28, 2017, the Fund had loaned securities with a total value of $16,951,251. This was secured by collateral of $2,848,330, which was received in cash and subsequently invested in short-term investments currently valued at $2,848,330 as reported in the Portfolio of Investments. Additional collateral of $14,550,347 was received in the form of fixed income pooled securities, which the Fund cannot sell or repledge. The components of the fixed income pooled securities referenced above are as follows: |
Securities |
Coupon Range |
Maturity Date Range |
Value as of February 28, 2017 |
|||||
Federal Home Loan Mtg. Corp. |
2.50% to 4.50% | 11/01/2027 to 09/01/2044 | $ | 1,270,305 | ||||
Federal National Mtg. Assoc. |
2.00% to 4.25% | 01/01/2032 to 02/25/2044 | 2,214,652 | |||||
Government National Mtg. Assoc. |
2.50% to 3.50% | 11/20/2027 to 11/20/2046 | 5,096,076 | |||||
United States Treasury Bills |
0.00% | 03/02/2017 to 12/07/2017 | 1,388,371 | |||||
United States Treasury Notes/Bonds |
zero coupon to 8.75% | 04/15/2017 to 11/15/2046 | 4,580,943 |
(2) | The rate shown is a 7-day yield as of February 28, 2017. |
(3) | See Note 5 for cost of investments on a tax basis. |
ADR—American Depositary Receipt
ETF—Exchange-Traded Funds
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 - Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Common Stocks |
$ | 242,423,639 | $ | — | $ | — | $ | 242,423,639 | ||||||||
Exchange Traded-Funds |
1,266,702 | — | — | 1,266,702 | ||||||||||||
Short-Term Investment Securities: |
||||||||||||||||
Registered Investment Companies |
2,848,330 | — | — | 2,848,330 | ||||||||||||
Other Short-Term Investment Securities |
— | 4,292,000 | — | 4,292,000 | ||||||||||||
Total Investments at Value |
$ | 246,538,671 | $ | 4,292,000 | $ | — | $ | 250,830,671 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
See Notes to Financial Statements
57 |
VALIC Company II Mid Cap Growth Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 — (unaudited)
Industry Allocation*
Commercial Services — Finance |
8.1 | % | ||
Medical Instruments |
4.5 | |||
Data Processing/Management |
3.6 | |||
Finance — Other Services |
3.5 | |||
Electronic Components — Semiconductors |
3.4 | |||
Entertainment Software |
3.3 | |||
Resorts/Theme Parks |
3.2 | |||
Distribution/Wholesale |
3.2 | |||
Enterprise Software/Service |
3.1 | |||
Non-Hazardous Waste Disposal |
2.8 | |||
Medical — Biomedical/Gene |
2.6 | |||
Lighting Products & Systems |
2.5 | |||
Applications Software |
2.4 | |||
Chemicals — Specialty |
2.4 | |||
Retail — Auto Parts |
2.3 | |||
Retail — Apparel/Shoe |
2.2 | |||
Containers — Paper/Plastic |
1.9 | |||
Real Estate Management/Services |
1.8 | |||
Auto/Truck Parts & Equipment — Original |
1.8 | |||
Building Products — Cement |
1.7 | |||
Electronic Security Devices |
1.7 | |||
Building Products — Air & Heating |
1.7 | |||
E-Commerce/Services |
1.7 | |||
Airlines |
1.6 | |||
Building Products — Doors & Windows |
1.6 | |||
Registered Investment Companies |
1.6 | |||
Building — Mobile Home/Manufactured Housing |
1.6 | |||
Beverages — Wine/Spirits |
1.6 | |||
Theaters |
1.5 | |||
Commercial Services |
1.5 | |||
Cable/Satellite TV |
1.5 | |||
Telephone — Integrated |
1.4 | |||
Computer Services |
1.4 | |||
Cruise Lines |
1.3 | |||
Telecom Equipment — Fiber Optics |
1.3 | |||
Coatings/Paint |
1.3 | |||
Finance — Investment Banker/Broker |
1.3 | |||
Finance — Consumer Loans |
1.3 | |||
Aerospace/Defense — Equipment |
1.3 | |||
Building — Maintenance & Services |
1.2 | |||
Electronic Measurement Instruments |
1.2 | |||
Schools |
1.2 | |||
Toys |
1.1 | |||
Industrial Automated/Robotic |
1.0 | |||
Drug Delivery Systems |
1.0 | |||
Diversified Manufacturing Operations |
0.9 | |||
Beverages — Non-alcoholic |
0.9 | |||
Transport — Rail |
0.8 | |||
Semiconductor Components — Integrated Circuits |
0.8 | |||
Oil Companies — Exploration & Production |
0.7 | |||
Medical — Generic Drugs |
0.7 | |||
Repurchase Agreements |
0.3 | |||
Auction Houses/Art Dealers |
0.2 | |||
100.5 | % | |||
* | Calculated as a percentage of net assets |
58 |
VALIC Company II Mid Cap Growth Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS — 98.6% |
| |||||||
Aerospace/Defense - Equipment — 1.3% |
| |||||||
Harris Corp. |
13,949 | $ | 1,532,995 | |||||
Airlines — 1.6% |
| |||||||
Spirit Airlines, Inc.† |
37,420 | 1,953,698 | ||||||
Applications Software — 2.4% |
| |||||||
PTC, Inc.† |
19,310 | 1,040,616 | ||||||
ServiceNow, Inc.† |
21,560 | 1,873,995 | ||||||
2,914,611 | ||||||||
Auction Houses/Art Dealers — 0.2% |
| |||||||
KAR Auction Services, Inc. |
5,262 | 235,843 | ||||||
Auto/Truck Parts & Equipment-Original — 1.8% |
| |||||||
Delphi Automotive PLC |
28,230 | 2,149,150 | ||||||
Beverages - Non-alcoholic — 0.9% |
| |||||||
Monster Beverage Corp.† |
25,350 | 1,050,504 | ||||||
Beverages - Wine/Spirits — 1.6% |
| |||||||
Constellation Brands, Inc., Class A# |
11,860 | 1,883,487 | ||||||
Building Products - Air & Heating — 1.7% |
| |||||||
Johnson Controls International PLC# |
48,416 | 2,030,567 | ||||||
Building Products - Cement — 1.7% |
| |||||||
Vulcan Materials Co. |
17,420 | 2,101,026 | ||||||
Building Products - Doors & Windows — 1.6% |
| |||||||
Masonite International Corp.† |
24,550 | 1,917,355 | ||||||
Building - Maintenance & Services — 1.2% |
| |||||||
Rollins, Inc. |
41,136 | 1,503,932 | ||||||
Building - Mobile Home/Manufactured Housing — 1.6% |
| |||||||
Thor Industries, Inc. |
17,030 | 1,887,265 | ||||||
Cable/Satellite TV — 1.5% |
| |||||||
Liberty Broadband Corp., Class C† |
20,870 | 1,793,568 | ||||||
Chemicals - Specialty — 2.4% |
| |||||||
Albemarle Corp.# |
9,420 | 956,224 | ||||||
Univar, Inc.† |
60,610 | 1,951,642 | ||||||
2,907,866 | ||||||||
Coatings/Paint — 1.3% |
| |||||||
Sherwin-Williams Co.# |
5,170 | 1,595,152 | ||||||
Commercial Services — 1.5% |
| |||||||
CoStar Group, Inc.†# |
8,871 | 1,802,410 | ||||||
Commercial Services - Finance — 8.1% |
| |||||||
Euronet Worldwide, Inc.†# |
21,560 | 1,784,737 | ||||||
S&P Global, Inc. |
12,640 | 1,636,501 | ||||||
Total System Services, Inc. |
42,920 | 2,338,282 | ||||||
TransUnion† |
51,960 | 1,927,196 | ||||||
WEX, Inc.† |
19,200 | 2,135,616 | ||||||
9,822,332 | ||||||||
Computer Services — 1.4% |
| |||||||
EPAM Systems, Inc.† |
22,978 | 1,691,870 | ||||||
Containers - Paper/Plastic — 1.9% |
| |||||||
Berry Plastics Group, Inc.† |
45,160 | 2,272,903 | ||||||
Cruise Lines — 1.3% |
| |||||||
Royal Caribbean Cruises, Ltd. |
16,970 | 1,630,817 | ||||||
Data Processing/Management — 3.6% |
| |||||||
Acxiom Corp.† |
59,261 | 1,690,124 | ||||||
Fidelity National Information Services, Inc. |
33,080 | 2,721,491 | ||||||
4,411,615 | ||||||||
Security Description | Shares | Value (Note 2) |
||||||
Distribution/Wholesale — 3.2% |
| |||||||
HD Supply Holdings, Inc.† |
57,340 | $ | 2,465,620 | |||||
Pool Corp. |
12,170 | 1,396,021 | ||||||
3,861,641 | ||||||||
Diversified Manufacturing Operations — 0.9% |
| |||||||
Carlisle Cos., Inc. |
11,060 | 1,142,498 | ||||||
Drug Delivery Systems — 1.0% |
| |||||||
DexCom, Inc.† |
15,410 | 1,204,446 | ||||||
E-Commerce/Services — 1.7% |
| |||||||
MercadoLibre, Inc. |
9,560 | 2,015,917 | ||||||
Electronic Components - Semiconductors — 3.4% |
| |||||||
Broadcom, Ltd. |
5,090 | 1,073,634 | ||||||
Micron Technology, Inc.† |
79,790 | 1,870,277 | ||||||
NVIDIA Corp. |
11,370 | 1,153,828 | ||||||
4,097,739 | ||||||||
Electronic Measurement Instruments — 1.2% |
| |||||||
FLIR Systems, Inc. |
39,140 | 1,436,829 | ||||||
Electronic Security Devices — 1.7% |
| |||||||
Allegion PLC |
28,410 | 2,062,282 | ||||||
Enterprise Software/Service — 3.1% |
| |||||||
Guidewire Software, Inc.†# |
30,490 | 1,665,974 | ||||||
Ultimate Software Group, Inc.† |
10,640 | 2,057,669 | ||||||
3,723,643 | ||||||||
Entertainment Software — 3.3% |
| |||||||
Activision Blizzard, Inc. |
30,630 | 1,382,332 | ||||||
Electronic Arts, Inc.† |
30,270 | 2,618,355 | ||||||
4,000,687 | ||||||||
Finance - Consumer Loans — 1.3% |
| |||||||
SLM Corp.† |
132,810 | 1,592,392 | ||||||
Finance - Investment Banker/Broker — 1.3% |
| |||||||
Raymond James Financial, Inc. |
20,280 | 1,593,197 | ||||||
Finance - Other Services — 3.5% |
| |||||||
Intercontinental Exchange, Inc. |
43,060 | 2,460,018 | ||||||
SEI Investments Co. |
36,683 | 1,846,989 | ||||||
4,307,007 | ||||||||
Industrial Automated/Robotic — 1.0% |
| |||||||
Rockwell Automation, Inc. |
8,410 | 1,270,751 | ||||||
Lighting Products & Systems — 2.5% |
| |||||||
Acuity Brands, Inc.# |
7,075 | 1,494,947 | ||||||
Universal Display Corp.†# |
18,380 | 1,559,543 | ||||||
3,054,490 | ||||||||
Medical Instruments — 4.5% |
| |||||||
Boston Scientific Corp.†# |
71,330 | 1,751,151 | ||||||
Integra LifeSciences Holdings Corp.† |
27,990 | 1,196,293 | ||||||
Intuitive Surgical, Inc.† |
3,360 | 2,476,320 | ||||||
5,423,764 | ||||||||
Medical - Biomedical/Gene — 2.6% |
| |||||||
BioMarin Pharmaceutical, Inc.† |
13,100 | 1,230,483 | ||||||
Bioverativ, Inc.† |
14,350 | 747,348 | ||||||
Incyte Corp.†# |
6,990 | 930,369 | ||||||
Seattle Genetics, Inc.† |
4,050 | 265,883 | ||||||
3,174,083 | ||||||||
Medical - Generic Drugs — 0.7% |
| |||||||
Perrigo Co. PLC# |
11,430 | 854,621 | ||||||
59 |
VALIC Company II Mid Cap Growth Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares |
Value (Note 2) |
||||||
COMMON STOCKS (continued) |
| |||||||
Medical - Hospitals — 0.0% |
| |||||||
Surgical Care Affiliates, Inc.†# |
410 | $ | 23,255 | |||||
Non-Hazardous Waste Disposal — 2.8% |
| |||||||
Waste Connections, Inc. |
39,562 | 3,457,323 | ||||||
Oil Companies - Exploration & Production — 0.7% |
| |||||||
Diamondback Energy, Inc.† |
8,510 | 858,319 | ||||||
Real Estate Management/Services — 1.8% |
| |||||||
CBRE Group, Inc., Class A† |
61,020 | 2,173,532 | ||||||
Resorts/Theme Parks — 3.2% |
| |||||||
Six Flags Entertainment Corp.# |
30,980 | 1,877,698 | ||||||
Vail Resorts, Inc. |
11,260 | 2,040,087 | ||||||
3,917,785 | ||||||||
Retail - Apparel/Shoe — 2.2% |
| |||||||
Burlington Stores, Inc.† |
20,030 | 1,782,870 | ||||||
L Brands, Inc. |
17,520 | 921,903 | ||||||
2,704,773 | ||||||||
Retail - Auto Parts — 2.3% |
| |||||||
O’Reilly Automotive, Inc.†# |
10,430 | 2,833,935 | ||||||
Schools — 1.2% |
| |||||||
Bright Horizons Family Solutions, Inc.† |
20,620 | 1,425,048 | ||||||
Semiconductor Components - Integrated Circuits — 0.8% |
| |||||||
NXP Semiconductors NV† |
8,960 | 921,178 | ||||||
Telecom Equipment - Fiber Optics — 1.3% |
| |||||||
Finisar Corp.† |
47,990 | 1,606,705 | ||||||
Telephone - Integrated — 1.4% |
| |||||||
Zayo Group Holdings, Inc.†# |
55,002 | 1,733,663 | ||||||
Theaters — 1.5% |
| |||||||
Cinemark Holdings, Inc. |
44,799 | 1,875,734 | ||||||
Toys — 1.1% |
| |||||||
Nintendo Co., Ltd. ADR |
49,390 | 1,289,326 | ||||||
Transport - Rail — 0.8% |
| |||||||
Kansas City Southern |
10,690 | 947,455 | ||||||
Total Long-Term Investment Securities |
||||||||
(cost $103,243,211) |
119,672,984 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 1.6% |
| |||||||
Registered Investment Companies — 1.6% |
||||||||
State Street Navigator Securities Lending Government Money Market Portfolio 0.50%(1)(2) |
1,904,299 | 1,904,299 | ||||||
Security Description | Principal Amount |
Value (Note 2) |
||||||
REPURCHASE AGREEMENTS — 0.3% |
| |||||||
Agreement with Fixed Income Clearing Corp., bearing |
$ | 437,000 | $ | 437,000 | ||||
TOTAL INVESTMENTS |
||||||||
(cost $105,584,510)(3) |
100.5 | % | 122,014,283 | |||||
Liabilities in excess of other assets |
(0.5 | ) | (613,469 | ) | ||||
NET ASSETS |
100.0 | % | $ | 121,400,814 | ||||
† | Non-income producing security |
# | The security or a portion thereof is out on loan (see Note 2). |
(1) | At February 28, 2017, the Fund had loaned securities with a total value of $15,452,992. This was secured by collateral of $1,904,299, which was received in cash and subsequently invested in short-term investments currently valued at $1,904,299 as reported in the Portfolio of Investments. Additional collateral of $14,098,448 was received in the form of fixed income pooled securities, which the Fund cannot sell or repledge. The components of the fixed income pooled securities referenced above are as follows: |
Securities |
Coupon Range |
Maturity Date Range |
Value as of February 28, 2017 |
|||||
Federal Home Loan Mtg. Corp. |
2.50% to 4.50% | 11/01/2027 to 09/01/2044 | $ | 1,008,865 | ||||
Federal National Mtg. Assoc. |
2.00% to 4.25% | 01/01/2032 to 02/25/2044 | 1,758,856 | |||||
Government National Mtg. Assoc. |
2.50% to 3.50% | 11/20/2027 to 11/20/2046 | 4,047,256 | |||||
United States Treasury Bills |
0.00% | 03/02/2017 to 12/07/2017 | 1,039,703 | |||||
United States Treasury Notes/Bonds |
zero coupon to 7.63% | 04/15/2017 to 11/15/2046 | 6,243,768 |
(2) | The rate shown is the 7-day yield as of February 28, 2017. |
(3) | See Note 5 for cost of investments on a tax basis. |
ADR—American Depositary Receipt
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 -
Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Common Stocks |
$ | 119,672,984 | $ | — | $ | — | $ | 119,672,984 | ||||||||
Short-Term Investment Securities |
1,904,299 | — | — | 1,904,299 | ||||||||||||
Repurchase Agreements |
— | 437,000 | — | 437,000 | ||||||||||||
Total Investments at Value |
$ | 121,577,283 | $ | 437,000 | $ | — | $ | 122,014,283 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
See Notes to Financial Statements
60 |
VALIC Company II Mid Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Real Estate Investment Trusts |
8.3 | % | ||
Oil Companies — Exploration & Production |
6.8 | |||
Banks — Commercial |
5.4 | |||
Electric — Integrated |
4.8 | |||
Banks — Super Regional |
4.0 | |||
Electronic Components — Semiconductors |
3.5 | |||
Insurance — Property/Casualty |
2.9 | |||
Aerospace/Defense — Equipment |
2.7 | |||
Insurance — Life/Health |
2.6 | |||
Containers — Paper/Plastic |
2.1 | |||
Insurance — Reinsurance |
1.8 | |||
Electronic Parts Distribution |
1.8 | |||
Chemicals — Diversified |
1.8 | |||
Finance — Investment Banker/Broker |
1.7 | |||
Registered Investment Companies |
1.7 | |||
Building — Residential/Commercial |
1.6 | |||
Computer Services |
1.6 | |||
Medical — Hospitals |
1.5 | |||
Insurance — Multi-line |
1.5 | |||
Entertainment Software |
1.4 | |||
Human Resources |
1.3 | |||
Diversified Manufacturing Operations |
1.2 | |||
Power Converter/Supply Equipment |
1.2 | |||
Gas — Distribution |
1.2 | |||
Oil Refining & Marketing |
1.2 | |||
Distribution/Wholesale |
1.1 | |||
Insurance Brokers |
1.1 | |||
Auto/Truck Parts & Equipment — Original |
1.0 | |||
Chemicals — Specialty |
1.0 | |||
Advertising Agencies |
0.9 | |||
Telecommunication Equipment |
0.9 | |||
Finance — Credit Card |
0.9 | |||
Steel — Producers |
0.9 | |||
Electronic Components — Misc. |
0.9 | |||
Finance — Consumer Loans |
0.9 | |||
Data Processing/Management |
0.9 | |||
Tools — Hand Held |
0.8 | |||
Rubber — Tires |
0.8 | |||
Transport — Rail |
0.8 | |||
Containers — Metal/Glass |
0.8 | |||
Medical Instruments |
0.8 | |||
Recreational Vehicles |
0.8 | |||
Medical Products |
0.8 | |||
Transport — Truck |
0.7 | |||
Cruise Lines |
0.7 | |||
E-Commerce/Services |
0.7 | |||
Medical Labs & Testing Services |
0.6 | |||
Computer Software |
0.6 | |||
Food — Flour & Grain |
0.6 | |||
Consulting Services |
0.6 | |||
Repurchase Agreements |
0.6 | |||
Electronic Measurement Instruments |
0.6 | |||
Banks — Fiduciary |
0.6 | |||
Commercial Services — Finance |
0.6 | |||
Building Products — Doors & Windows |
0.6 | |||
Disposable Medical Products |
0.6 | |||
Savings & Loans/Thrifts |
0.6 | |||
Building Products — Wood |
0.6 | |||
E-Commerce/Products |
0.5 | |||
Shipbuilding |
0.5 | |||
Home Decoration Products |
0.5 | |||
Apparel Manufacturers |
0.5 | |||
Publishing — Books |
0.5 | |||
Building & Construction Products — Misc. |
0.5 | |||
Electronic Connectors |
0.4 | |||
Retirement/Aged Care |
0.4 | |||
Cellular Telecom |
0.4 | |||
Instruments — Controls |
0.4 | |||
Food — Misc./Diversified |
0.4 |
Finance — Other Services |
0.4 | |||
Dialysis Centers |
0.4 | |||
Metal Processors & Fabrication |
0.3 | |||
Medical — Drugs |
0.3 | |||
Medical — Wholesale Drug Distribution |
0.3 | |||
Retail — Auto Parts |
0.3 | |||
Beverages — Non-alcoholic |
0.3 | |||
Retail — Apparel/Shoe |
0.2 | |||
Machine Tools & Related Products |
0.2 | |||
Oil — Field Services |
0.2 | |||
Engineering/R&D Services |
0.2 | |||
Retail — Consumer Electronics |
0.2 | |||
Electric Products — Misc. |
0.2 | |||
Hazardous Waste Disposal |
0.2 | |||
Computers — Memory Devices |
0.2 | |||
Commercial Services |
0.2 | |||
Office Supplies & Forms |
0.1 | |||
Toys |
0.1 | |||
Decision Support Software |
0.1 | |||
Multimedia |
0.1 | |||
100.5 | % | |||
* | Calculated as a percentage of net assets |
61 |
VALIC Company II Mid Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Shares |
Value (Note 2) |
||||||
COMMON STOCKS — 98.2% |
| |||||||
Advertising Agencies — 0.9% |
| |||||||
Interpublic Group of Cos., Inc. |
264,713 | $ | 6,379,583 | |||||
Omnicom Group, Inc.# |
43,507 | 3,702,446 | ||||||
10,082,029 | ||||||||
Aerospace/Defense - Equipment — 2.7% |
||||||||
Curtiss-Wright Corp. |
35,487 | 3,471,693 | ||||||
Harris Corp. |
166,927 | 18,345,277 | ||||||
Moog, Inc., Class A† |
108,727 | 7,347,771 | ||||||
29,164,741 | ||||||||
Apparel Manufacturers — 0.5% |
||||||||
Global Brands Group Holding, Ltd.† |
45,967,470 | 5,388,501 | ||||||
Applications Software — 0.0% |
||||||||
Verint Systems, Inc.† |
9,421 | 355,643 | ||||||
Auto/Truck Parts & Equipment - Original — 1.0% |
||||||||
BorgWarner, Inc.# |
72,194 | 3,045,865 | ||||||
Tenneco, Inc. |
65,781 | 4,230,376 | ||||||
WABCO Holdings, Inc.†# |
32,963 | 3,701,086 | ||||||
10,977,327 | ||||||||
Banks - Commercial — 5.4% |
||||||||
Bank of the Ozarks, Inc.# |
110,854 | 6,067,039 | ||||||
BankUnited, Inc. |
127,316 | 5,045,533 | ||||||
BB&T Corp.# |
69,557 | 3,354,039 | ||||||
East West Bancorp, Inc. |
126,429 | 6,842,337 | ||||||
IBERIABANK Corp. |
79,783 | 6,761,609 | ||||||
MB Financial, Inc. |
116,650 | 5,251,583 | ||||||
Regions Financial Corp. |
141,421 | 2,159,499 | ||||||
South State Corp. |
61,253 | 5,482,144 | ||||||
Western Alliance Bancorp† |
44,032 | 2,273,812 | ||||||
Zions Bancorporation |
320,585 | 14,394,267 | ||||||
57,631,862 | ||||||||
Banks - Fiduciary — 0.6% |
||||||||
State Street Corp.# |
77,819 | 6,202,953 | ||||||
Banks - Super Regional — 4.0% |
||||||||
Comerica, Inc.# |
216,242 | 15,413,730 | ||||||
Fifth Third Bancorp |
309,583 | 8,494,958 | ||||||
Huntington Bancshares, Inc. |
647,339 | 9,153,373 | ||||||
SunTrust Banks, Inc.# |
157,484 | 9,368,723 | ||||||
42,430,784 | ||||||||
Beverages - Non-alcoholic — 0.3% |
||||||||
Coca-Cola European Partners PLC |
77,645 | 2,693,505 | ||||||
Building & Construction Products - Misc. — 0.5% |
||||||||
Louisiana-Pacific Corp.† |
213,946 | 5,044,847 | ||||||
Building Products - Doors & Windows — 0.6% |
||||||||
Sanwa Holdings Corp. |
647,450 | 6,108,834 | ||||||
Building Products - Wood — 0.6% |
||||||||
Masco Corp. |
178,032 | 6,013,921 | ||||||
Building - Residential/Commercial — 1.6% |
||||||||
D.R. Horton, Inc. |
146,365 | 4,683,680 | ||||||
Lennar Corp., Class A |
163,408 | 7,972,676 | ||||||
PulteGroup, Inc.# |
71,809 | 1,583,389 | ||||||
Toll Brothers, Inc.† |
99,805 | 3,407,343 | ||||||
17,647,088 | ||||||||
Cellular Telecom — 0.4% |
||||||||
Millicom International Cellular SA SDR |
77,773 | 4,243,370 | ||||||
Chemicals - Diversified — 1.8% |
||||||||
Celanese Corp., Series A |
102,907 | 9,176,217 | ||||||
PPG Industries, Inc.# |
29,464 | 3,017,998 |
Security Description | Shares |
Value (Note 2) |
||||||
Chemicals - Diversified (continued) |
||||||||
Westlake Chemical Corp. |
105,240 | $ | 6,675,373 | |||||
18,869,588 | ||||||||
Chemicals - Specialty — 1.0% |
||||||||
Cabot Corp. |
77,282 | 4,480,810 | ||||||
Methanex Corp.# |
118,237 | 6,030,087 | ||||||
10,510,897 | ||||||||
Commercial Services — 0.2% |
||||||||
Nielsen Holdings PLC |
39,977 | 1,773,380 | ||||||
Commercial Services - Finance — 0.6% |
||||||||
IHS Markit, Ltd.†# |
106,997 | 4,258,481 | ||||||
Moody’s Corp. |
16,830 | 1,874,357 | ||||||
6,132,838 | ||||||||
Computer Services — 1.6% |
||||||||
Amdocs, Ltd. |
152,607 | 9,255,614 | ||||||
Cognizant Technology Solutions Corp., Class A† |
28,136 | 1,667,621 | ||||||
Computer Sciences Corp. |
47,684 | 3,269,215 | ||||||
Leidos Holdings, Inc. |
52,166 | 2,780,448 | ||||||
16,972,898 | ||||||||
Computer Software — 0.6% |
||||||||
SS&C Technologies Holdings, Inc.# |
194,803 | 6,822,001 | ||||||
Computers - Memory Devices — 0.2% |
||||||||
Western Digital Corp.# |
26,522 | 2,039,011 | ||||||
Consulting Services — 0.6% |
||||||||
Booz Allen Hamilton Holding Corp. |
184,477 | 6,598,742 | ||||||
Containers - Metal/Glass — 0.8% |
||||||||
Crown Holdings, Inc.† |
156,690 | 8,397,017 | ||||||
Containers - Paper/Plastic — 2.1% |
||||||||
Bemis Co., Inc. |
108,927 | 5,399,511 | ||||||
Berry Plastics Group, Inc.† |
115,521 | 5,814,172 | ||||||
Graphic Packaging Holding Co. |
180,379 | 2,408,060 | ||||||
Sealed Air Corp.# |
122,051 | 5,672,931 | ||||||
WestRock Co. |
69,159 | 3,715,221 | ||||||
23,009,895 | ||||||||
Cruise Lines — 0.7% |
||||||||
Norwegian Cruise Line Holdings, Ltd.†# |
156,540 | 7,936,578 | ||||||
Data Processing/Management — 0.9% |
||||||||
Fidelity National Information Services, Inc. |
115,197 | 9,477,257 | ||||||
Decision Support Software — 0.1% |
||||||||
MSCI, Inc. |
13,487 | 1,275,735 | ||||||
Dialysis Centers — 0.4% |
||||||||
DaVita, Inc.† |
57,553 | 3,994,754 | ||||||
Disposable Medical Products — 0.6% |
||||||||
STERIS PLC |
86,185 | 6,044,154 | ||||||
Distribution/Wholesale — 1.1% |
||||||||
HD Supply Holdings, Inc.† |
78,450 | 3,373,350 | ||||||
WESCO International, Inc.†# |
128,791 | 8,950,975 | ||||||
12,324,325 | ||||||||
Diversified Manufacturing Operations — 1.2% |
||||||||
Eaton Corp. PLC |
45,124 | 3,248,025 | ||||||
Ingersoll-Rand PLC# |
87,394 | 6,935,588 | ||||||
Textron, Inc. |
66,856 | 3,162,289 | ||||||
13,345,902 | ||||||||
62 |
VALIC Company II Mid Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares |
Value (Note 2) |
||||||
COMMON STOCKS (continued) |
||||||||
E-Commerce/Products — 0.5% |
||||||||
eBay, Inc.† |
173,547 | $ | 5,883,243 | |||||
E-Commerce/Services — 0.7% |
||||||||
Expedia, Inc.# |
28,016 | 3,335,025 | ||||||
IAC/InterActiveCorp† |
53,261 | 3,938,118 | ||||||
7,273,143 | ||||||||
Electric Products - Misc. — 0.2% |
||||||||
AMETEK, Inc.# |
38,380 | 2,071,369 | ||||||
Electric - Integrated — 4.8% |
||||||||
Alliant Energy Corp. |
292,849 | 11,561,679 | ||||||
Ameren Corp. |
64,144 | 3,508,035 | ||||||
American Electric Power Co., Inc. |
100,990 | 6,763,300 | ||||||
Edison International# |
125,875 | 10,037,273 | ||||||
Great Plains Energy, Inc. |
333,244 | 9,684,071 | ||||||
PG&E Corp. |
99,779 | 6,660,248 | ||||||
Portland General Electric Co. |
71,712 | 3,250,705 | ||||||
51,465,311 | ||||||||
Electronic Components - Misc. — 0.9% |
||||||||
Flex, Ltd.† |
365,325 | 6,024,209 | ||||||
Jabil Circuit, Inc. |
143,674 | 3,665,124 | ||||||
9,689,333 | ||||||||
Electronic Components - Semiconductors — 3.5% |
||||||||
Broadcom, Ltd.# |
8,387 | 1,769,070 | ||||||
Microsemi Corp.†# |
307,232 | 15,920,762 | ||||||
ON Semiconductor Corp.†# |
236,261 | 3,574,629 | ||||||
Qorvo, Inc.†# |
103,254 | 6,825,089 | ||||||
Silicon Motion Technology Corp. ADR# |
177,569 | 7,207,526 | ||||||
Skyworks Solutions, Inc.# |
22,660 | 2,148,395 | ||||||
37,445,471 | ||||||||
Electronic Connectors — 0.4% |
||||||||
TE Connectivity, Ltd. |
64,394 | 4,795,421 | ||||||
Electronic Measurement Instruments — 0.6% |
||||||||
Keysight Technologies, Inc.† |
166,600 | 6,264,160 | ||||||
Electronic Parts Distribution — 1.8% |
||||||||
Arrow Electronics, Inc.† |
265,811 | 19,191,554 | ||||||
Engineering/R&D Services — 0.2% |
||||||||
Fluor Corp.# |
43,139 | 2,389,469 | ||||||
Entertainment Software — 1.4% |
||||||||
Activision Blizzard, Inc. |
218,151 | 9,845,155 | ||||||
NetEase, Inc. ADR |
15,347 | 4,681,756 | ||||||
14,526,911 | ||||||||
Finance - Consumer Loans — 0.9% |
||||||||
Navient Corp.# |
263,498 | 4,060,504 | ||||||
SLM Corp.† |
341,791 | 4,098,074 | ||||||
Synchrony Financial |
40,889 | 1,481,818 | ||||||
9,640,396 | ||||||||
Finance - Credit Card — 0.9% |
||||||||
Alliance Data Systems Corp.# |
6,353 | 1,543,652 | ||||||
Discover Financial Services |
117,417 | 8,353,045 | ||||||
9,896,697 | ||||||||
Finance - Investment Banker/Broker — 1.7% |
||||||||
Raymond James Financial, Inc. |
154,989 | 12,175,936 | ||||||
TD Ameritrade Holding Corp. |
151,008 | 5,904,413 | ||||||
18,080,349 | ||||||||
Security Description | Shares |
Value (Note 2) |
||||||
Finance - Other Services — 0.4% |
||||||||
SEI Investments Co. |
79,567 | $ | 4,006,198 | |||||
Food - Flour & Grain — 0.6% |
||||||||
Post Holdings, Inc.† |
82,568 | 6,759,842 | ||||||
Food - Misc./Diversified — 0.4% |
||||||||
Ingredion, Inc. |
34,300 | 4,146,527 | ||||||
Gas - Distribution — 1.2% |
||||||||
UGI Corp. |
261,438 | 12,609,155 | ||||||
Hazardous Waste Disposal — 0.2% |
||||||||
Clean Harbors, Inc.† |
35,500 | 2,057,580 | ||||||
Home Decoration Products — 0.5% |
||||||||
Newell Brands, Inc.# |
114,034 | 5,591,087 | ||||||
Human Resources — 1.3% |
||||||||
ManpowerGroup, Inc. |
72,896 | 7,073,828 | ||||||
Robert Half International, Inc. |
147,994 | 7,139,230 | ||||||
14,213,058 | ||||||||
Instruments - Controls — 0.4% |
||||||||
Sensata Technologies Holding NV† |
102,459 | 4,205,942 | ||||||
Insurance Brokers — 1.1% |
||||||||
Aon PLC# |
52,139 | 6,029,875 | ||||||
Marsh & McLennan Cos., Inc. |
73,430 | 5,395,637 | ||||||
11,425,512 | ||||||||
Insurance - Life/Health — 2.6% |
||||||||
CNO Financial Group, Inc. |
274,571 | 5,741,280 | ||||||
Torchmark Corp. |
47,153 | 3,655,772 | ||||||
Unum Group |
385,739 | 18,835,635 | ||||||
28,232,687 | ||||||||
Insurance - Multi-line — 1.5% |
||||||||
Allstate Corp. |
78,133 | 6,419,407 | ||||||
Assurant, Inc. |
44,870 | 4,442,130 | ||||||
Loews Corp.# |
106,692 | 5,012,390 | ||||||
15,873,927 | ||||||||
Insurance-Property/Casualty — 2.9% |
||||||||
Alleghany Corp.† |
14,804 | 9,560,423 | ||||||
Hanover Insurance Group, Inc. |
46,376 | 4,174,767 | ||||||
WR Berkley Corp.# |
78,127 | 5,548,580 | ||||||
XL Group, Ltd. |
298,692 | 12,094,039 | ||||||
31,377,809 | ||||||||
Insurance - Reinsurance — 1.8% |
||||||||
Reinsurance Group of America, Inc. |
149,214 | 19,406,773 | ||||||
Machine Tools & Related Products — 0.2% |
||||||||
Milacron Holdings Corp.† |
141,926 | 2,577,376 | ||||||
Medical Instruments — 0.8% |
||||||||
Boston Scientific Corp.†# |
271,338 | 6,661,348 | ||||||
Bruker Corp. |
70,841 | 1,710,810 | ||||||
8,372,158 | ||||||||
Medical Labs & Testing Services — 0.6% |
||||||||
ICON PLC† |
18,119 | 1,517,829 | ||||||
Laboratory Corp. of America Holdings† |
38,039 | 5,411,428 | ||||||
6,929,257 | ||||||||
Medical Products — 0.8% |
||||||||
Becton Dickinson and Co.# |
26,398 | 4,832,154 | ||||||
Zimmer Biomet Holdings, Inc.# |
28,081 | 3,287,723 | ||||||
8,119,877 | ||||||||
63 |
VALIC Company II Mid Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares |
Value (Note 2) |
||||||
COMMON STOCKS (continued) |
||||||||
Medical - Drugs — 0.3% |
||||||||
Endo International PLC†# |
228,030 | $ | 3,112,610 | |||||
Medical - Hospitals — 1.5% |
||||||||
Acadia Healthcare Co., Inc.†# |
129,901 | 5,809,173 | ||||||
Envision Healthcare Corp.†# |
106,799 | 7,475,930 | ||||||
Universal Health Services, Inc., Class B |
24,667 | 3,098,175 | ||||||
16,383,278 | ||||||||
Medical - Wholesale Drug Distribution — 0.3% |
||||||||
Cardinal Health, Inc.# |
36,973 | 3,008,493 | ||||||
Metal Processors & Fabrication — 0.3% |
||||||||
Timken Co. |
74,854 | 3,308,547 | ||||||
Multimedia — 0.1% |
||||||||
Quebecor, Inc., Class B |
28,400 | 803,548 | ||||||
Office Supplies & Forms — 0.1% |
||||||||
Avery Dennison Corp. |
19,741 | 1,593,296 | ||||||
Oil Companies - Exploration & Production — 6.8% |
||||||||
Cimarex Energy Co. |
18,329 | 2,304,322 | ||||||
Cobalt International Energy, Inc.†# |
437,445 | 310,586 | ||||||
Diamondback Energy, Inc.†# |
202,386 | 20,412,652 | ||||||
Energen Corp.† |
187,582 | 9,848,055 | ||||||
EQT Corp. |
48,280 | 2,891,489 | ||||||
Gulfport Energy Corp.†# |
87,415 | 1,515,776 | ||||||
Marathon Oil Corp.# |
296,212 | 4,739,392 | ||||||
Newfield Exploration Co.†# |
341,224 | 12,441,027 | ||||||
Parsley Energy, Inc., Class A†# |
193,518 | 5,881,012 | ||||||
QEP Resources, Inc.† |
545,526 | 7,506,438 | ||||||
Rice Energy, Inc.† |
63,187 | 1,178,438 | ||||||
RSP Permian, Inc.† |
108,588 | 4,288,140 | ||||||
73,317,327 | ||||||||
Oil Refining & Marketing — 1.2% |
||||||||
Delek US Holdings, Inc. |
183,913 | 4,426,786 | ||||||
HollyFrontier Corp.# |
42,318 | 1,239,071 | ||||||
Marathon Petroleum Corp. |
101,674 | 5,043,031 | ||||||
Tesoro Corp.# |
21,222 | 1,807,902 | ||||||
12,516,790 | ||||||||
Oil - Field Services — 0.2% |
||||||||
NOW, Inc.† |
62,036 | 1,187,369 | ||||||
Trican Well Service, Ltd.† |
362,395 | 1,342,406 | ||||||
2,529,775 | ||||||||
Power Converter/Supply Equipment — 1.2% |
||||||||
Generac Holdings, Inc.†# |
90,560 | 3,535,462 | ||||||
Hubbell, Inc. |
79,541 | 9,435,154 | ||||||
12,970,616 | ||||||||
Publishing - Books — 0.5% |
||||||||
John Wiley & Sons, Inc., Class A |
102,919 | 5,372,372 | ||||||
Real Estate Investment Trusts — 8.3% |
||||||||
American Assets Trust, Inc. |
126,356 | 5,559,664 | ||||||
American Homes 4 Rent, Class A |
86,463 | 2,055,226 | ||||||
Boston Properties, Inc. |
65,287 | 9,076,852 | ||||||
Douglas Emmett, Inc. |
102,600 | 4,138,884 | ||||||
Equity LifeStyle Properties, Inc. |
83,423 | 6,642,139 | ||||||
Equity Residential |
48,045 | 3,030,198 | ||||||
Essex Property Trust, Inc. |
9,241 | 2,168,863 | ||||||
Extra Space Storage, Inc. |
52,811 | 4,182,103 | ||||||
Forest City Realty Trust, Inc., Class A# |
90,730 | 2,073,180 | ||||||
GGP, Inc.# |
140,942 | 3,503,818 | ||||||
Kilroy Realty Corp. |
24,124 | 1,861,167 | ||||||
Kimco Realty Corp. |
164,519 | 3,989,586 |
Security Description | Shares |
Value (Note 2) |
||||||
Real Estate Investment Trusts (continued) |
||||||||
LaSalle Hotel Properties |
161,078 | $ | 4,655,154 | |||||
Life Storage, Inc. |
44,388 | 3,934,108 | ||||||
Macerich Co. |
29,881 | 2,013,382 | ||||||
PS Business Parks, Inc. |
67,527 | 7,847,313 | ||||||
Regency Centers Corp. |
106,587 | 7,498,395 | ||||||
SL Green Realty Corp. |
79,986 | 9,012,822 | ||||||
STORE Capital Corp. |
240,588 | 5,993,047 | ||||||
89,235,901 | ||||||||
Recreational Vehicles — 0.8% |
||||||||
Brunswick Corp. |
137,596 | 8,240,624 | ||||||
Retail - Apparel/Shoe — 0.2% |
||||||||
DSW, Inc., Class A# |
122,885 | 2,584,272 | ||||||
Retail - Auto Parts — 0.3% |
||||||||
Advance Auto Parts, Inc. |
18,740 | 2,934,871 | ||||||
Retail - Consumer Electronics — 0.2% |
||||||||
Best Buy Co., Inc.# |
47,295 | 2,087,128 | ||||||
Retirement/Aged Care — 0.4% |
||||||||
Brookdale Senior Living, Inc.† |
308,527 | 4,442,789 | ||||||
Rubber - Tires — 0.8% |
||||||||
Goodyear Tire & Rubber Co. |
241,222 | 8,454,831 | ||||||
Savings & Loans/Thrifts — 0.6% |
||||||||
Provident Financial Services, Inc. |
111,570 | 2,962,183 | ||||||
Sterling Bancorp# |
123,393 | 3,053,977 | ||||||
6,016,160 | ||||||||
Shipbuilding — 0.5% |
||||||||
Huntington Ingalls Industries, Inc. |
26,016 | 5,684,496 | ||||||
Steel - Producers — 0.9% |
||||||||
Reliance Steel & Aluminum Co. |
47,120 | 3,988,708 | ||||||
Steel Dynamics, Inc.# |
161,364 | 5,905,922 | ||||||
9,894,630 | ||||||||
Telecommunication Equipment — 0.9% |
||||||||
CommScope Holding Co., Inc.† |
261,689 | 9,957,266 | ||||||
Tools - Hand Held — 0.8% |
||||||||
Stanley Black & Decker, Inc. |
70,025 | 8,903,679 | ||||||
Toys — 0.1% |
||||||||
Hasbro, Inc.# |
15,667 | 1,517,662 | ||||||
Transport - Rail — 0.8% |
||||||||
Genesee & Wyoming, Inc., Class A† |
113,746 | 8,433,128 | ||||||
Transport - Truck — 0.7% |
||||||||
Knight Transportation, Inc.# |
242,767 | 7,938,481 | ||||||
Total Long-Term Investment Securities |
||||||||
(cost $882,208,382) |
1,055,270,539 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 1.7% |
||||||||
Registered Investment Companies — 1.7% |
||||||||
State Street Institutional Liquid Reserves Fund, Administration Class 0.51%(3) |
9,366,512 | 9,367,448 | ||||||
State Street Navigator Securities Lending Government Money Market Portfolio 0.50%(1)(3) |
8,584,834 | 8,584,834 | ||||||
Total Short-Term Investment Securities |
||||||||
(cost $17,952,282) |
17,952,282 | |||||||
64 |
VALIC Company II Mid Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
REPURCHASE AGREEMENTS — 0.6% |
||||||||
Agreement with Fixed Income Clearing Corp., bearing interest at 0.03%, dated 02/28/2017, to be repurchased 03/01/2017 in the amount
of $6,481,004 collateralized by $6,820,000 of United States Treasury Notes, bearing interest at 3.00% due 05/15/2045 and having an approximate value of $6,678,110 |
$ | 6,481,000 | $ | 6,481,000 | ||||
TOTAL INVESTMENTS |
||||||||
(cost $906,641,664)(2) |
100.5 | % | 1,079,703,821 | |||||
Liabilities in excess of other assets |
(0.5 | ) | (5,742,550 | ) | ||||
NET ASSETS |
100.0 | % | $ | 1,073,961,271 | ||||
# | The security or a portion thereof is out on loan (see Note 2). |
† | Non-income producing security |
(1) | At February 28, 2017, the Fund had loaned securities with a total value of $141,991,088. This was secured by collateral of $8,584,834, which was received in cash and subsequently invested in short-term investments currently value at $8,584,834 as reported in the Portfolio of Investments. Additional collateral of $138,174,666 was received in the form of short-term pooled securities, which the Fund cannot sell or repledge and accordingly is not reflected in the Fund’s assets and liabilities. |
The components of the fixed income pooled securities referenced above are as follows:
Securities |
Coupon Range |
Maturity Date Range |
Value as of February 28, 2017 |
|||||
Federal Home Loan Mtg. Corp. |
2.50% to 4.50% | 11/01/2027 to 09/01/2044 | $ | 13,613,949 | ||||
Federal National Mtg. |
2.00% to 4.25% | 01/01/2032 to 02/25/2044 | 23,734,574 | |||||
Government National Mtg. Assoc. |
2.50% to 3.50% | 11/20/2027 to 11/20/2046 | 54,614,991 | |||||
United States Treasury |
0.00% | 03/02/2017 to 12/07/2017 | 10,100,258 | |||||
United States Treasury |
zero coupon to 7.63% | 04/15/2017 to 11/15/2046 | 36,110,894 |
(2) | See Note 5 for cost of investments on a tax basis. |
(3) | The rate shown is a 7-day yield as of February 28, 2017. |
ADR—American Depositary Receipt
SDR—Swedish Depositary Receipt
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 -
Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Common Stocks |
$ | 1,055,270,539 | $ | — | $ | — | $ | 1,055,270,539 | ||||||||
Short-Term Investment Securities |
17,952,282 | — | — | 17,952,282 | ||||||||||||
Repurchase Agreements |
— | 6,481,000 | — | 6,481,000 | ||||||||||||
Total Investments at Value |
$ | 1,073,222,821 | $ | 6,481,000 | $ | — | $ | 1,079,703,821 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
See Notes to Financial Statements
65 |
VALIC Company II Moderate Growth Lifestyle Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Domestic Equity Investment Companies |
43.3 | % | ||
Domestic Fixed Income Investment Companies |
40.6 | |||
International Equity Investment Companies |
9.7 | |||
Real Estate Investment Trusts |
5.2 | |||
International Fixed Income Investment Companies |
1.2 | |||
100.0% | ||||
* | Calculated as a percentage of net assets |
66 |
VALIC Company II Moderate Growth Lifestyle Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Shares | Value (Note 2) |
||||||
AFFILIATED REGISTERED INVESTMENT COMPANIES#(1) — 100.0% |
| |||||||
Domestic Equity Investment Companies — 43.3% |
| |||||||
VALIC Co. I Blue Chip Growth Fund |
1,054,172 | $ | 16,719,168 | |||||
VALIC Co. I Dividend Value Fund |
2,112,194 | 25,240,714 | ||||||
VALIC Co. I Mid Cap Index Fund |
1,899,924 | 50,290,986 | ||||||
VALIC Co. I Mid Cap Strategic Growth Fund |
383,933 | 5,067,921 | ||||||
VALIC Co. I Nasdaq-100 Index Fund |
742,225 | 8,268,386 | ||||||
VALIC Co. I Science & Technology Fund |
324,061 | 7,589,518 | ||||||
VALIC Co. I Small Cap Index Fund |
3,058,745 | 62,398,397 | ||||||
VALIC Co. I Small Cap Special Values Fund |
1,813,019 | 24,330,721 | ||||||
VALIC Co. I Stock Index Fund |
474,926 | 16,902,627 | ||||||
VALIC Co. I Value Fund |
281,213 | 4,662,504 | ||||||
VALIC Co. II Capital Appreciation Fund |
1,229,003 | 20,929,915 | ||||||
VALIC Co. II Large Cap Value Fund |
710,335 | 14,895,718 | ||||||
VALIC Co. II Mid Cap Growth Fund |
656,033 | 5,996,145 | ||||||
VALIC Co. II Mid Cap Value Fund |
3,151,573 | 71,225,546 | ||||||
VALIC Co. II Small Cap Growth Fund |
571,880 | 9,035,702 | ||||||
VALIC Co. II Small Cap Value Fund |
2,369,893 | 36,828,143 | ||||||
Total Domestic Equity Investment Companies |
||||||||
(cost $341,989,290) |
380,382,111 | |||||||
Domestic Fixed Income Investment Companies — 40.6% |
| |||||||
VALIC Co. I Capital Conservation Fund |
2,677,211 | 25,995,719 | ||||||
VALIC Co. I Government Securities Fund |
1,167,043 | 12,242,284 | ||||||
VALIC Co. I Inflation Protected Fund |
5,800,638 | 63,516,984 | ||||||
VALIC Co. II Core Bond Fund |
5,925,013 | 66,004,646 | ||||||
VALIC Co. II High Yield Bond Fund |
10,051,009 | 79,201,954 | ||||||
VALIC Co. II Strategic Bond Fund |
9,640,175 | 109,897,995 | ||||||
Total Domestic Fixed Income Investment Companies |
||||||||
(cost $353,037,375) |
356,859,582 | |||||||
Security Description | Shares | Value (Note 2) |
||||||
International Equity Investment Companies — 9.7% |
| |||||||
VALIC Co. I Emerging Economies Fund |
1,667,700 | $ | 12,357,656 | |||||
VALIC Co. I Foreign Value Fund |
2,802,707 | 27,718,775 | ||||||
VALIC Co. I International Equities Index Fund |
2,776,229 | 17,823,392 | ||||||
VALIC Co. I International Growth Fund |
761,811 | 8,913,190 | ||||||
VALIC Co. II International Opportunities Fund |
1,109,004 | 18,076,761 | ||||||
Total International Equity Investment Companies |
||||||||
(cost $84,421,982) |
84,889,774 | |||||||
International Fixed Income Investment Companies — 1.2% |
| |||||||
VALIC Co. I International Government Bond Fund |
||||||||
(cost $10,557,251) |
891,558 | 10,110,270 | ||||||
Real Estate Investment Companies — 5.2% |
| |||||||
VALIC Co. I Global Real Estate Fund |
||||||||
(cost $50,124,319) |
6,177,612 | 45,899,657 | ||||||
TOTAL INVESTMENTS |
||||||||
(cost $840,130,217)(2) |
100.0 | % | 878,141,394 | |||||
Liabilities in excess of other assets |
(0.0 | ) | (100,134 | ) | ||||
NET ASSETS |
100.0 | % | $ | 878,041,260 | ||||
# | The Moderate Growth Lifestyle Fund invests in various VALIC Company I or VALIC Company II Funds, some of which are not presented in this report. Additional information on the underlying funds including such fund’s prospectuses and shareholder reports is available at our website, www.valic.com |
(1) | See Note 3 |
(2) | See Note 5 for cost of investments on a tax basis. |
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 - Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Affiliated Registered Investment Companies |
$ | 878,141,394 | $ | — | $ | — | $ | 878,141,394 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
See Notes to Financial Statements
67 |
VALIC Company II Small Cap Growth Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Registered Investment Companies |
11.8 | % | ||
Medical — Biomedical/Gene |
7.6 | |||
Electronic Components — Semiconductors |
5.7 | |||
Enterprise Software/Service |
4.9 | |||
Medical — Drugs |
3.6 | |||
Building & Construction Products — Misc. |
3.0 | |||
Retail — Automobile |
2.4 | |||
Building Products — Doors & Windows |
2.3 | |||
Distribution/Wholesale |
2.3 | |||
Banks — Commercial |
2.2 | |||
Computer Software |
1.9 | |||
Medical Products |
1.9 | |||
E-Commerce/Services |
1.9 | |||
Transport — Truck |
1.7 | |||
Applications Software |
1.7 | |||
Entertainment Software |
1.6 | |||
Oil Companies — Exploration & Production |
1.6 | |||
Educational Software |
1.6 | |||
Finance — Investment Banker/Broker |
1.6 | |||
Therapeutics |
1.5 | |||
Investment Management/Advisor Services |
1.5 | |||
Retail — Apparel/Shoe |
1.5 | |||
Time Deposits |
1.5 | |||
Miscellaneous Manufacturing |
1.5 | |||
Electric Products — Misc. |
1.5 | |||
Casino Hotels |
1.4 | |||
Building Products — Cement |
1.3 | |||
Internet Security |
1.3 | |||
Real Estate Management/Services |
1.3 | |||
Aerospace/Defense — Equipment |
1.3 | |||
Internet Telephone |
1.3 | |||
Web Hosting/Design |
1.2 | |||
Medical — Hospitals |
1.2 | |||
Real Estate Investment Trusts |
1.2 | |||
Building Products — Air & Heating |
1.1 | |||
Resorts/Theme Parks |
1.1 | |||
E-Services/Consulting |
1.1 | |||
Drug Delivery Systems |
1.1 | |||
Machinery — Pumps |
1.1 | |||
Medical — HMO |
1.0 | |||
Machinery — General Industrial |
1.0 | |||
Internet Application Software |
1.0 | |||
Diagnostic Equipment |
1.0 | |||
Semiconductor Equipment |
1.0 | |||
Footwear & Related Apparel |
0.9 | |||
Retail — Restaurants |
0.9 | |||
Advanced Materials |
0.9 | |||
Commercial Services |
0.9 | |||
Alternative Waste Technology |
0.9 | |||
Retail — Discount |
0.9 | |||
Retail — Convenience Store |
0.8 | |||
Steel Pipe & Tube |
0.8 | |||
E-Commerce/Products |
0.8 | |||
Cosmetics & Toiletries |
0.8 | |||
Patient Monitoring Equipment |
0.8 | |||
Medical Labs & Testing Services |
0.7 | |||
Food — Wholesale/Distribution |
0.7 | |||
Machinery — Construction & Mining |
0.7 | |||
Food — Misc./Diversified |
0.7 | |||
Savings & Loans/Thrifts |
0.7 | |||
Investment Companies |
0.7 | |||
Medical Imaging Systems |
0.6 | |||
Auto Repair Centers |
0.6 | |||
Diversified Manufacturing Operations |
0.6 | |||
Retail — Building Products |
0.6 | |||
Telecom Equipment — Fiber Optics |
0.6 | |||
Retail — Pet Food & Supplies |
0.6 | |||
Building — Residential/Commercial |
0.6 | |||
Wireless Equipment |
0.6 |
Food — Retail |
0.5 | |||
Computers |
0.4 | |||
Computers — Memory Devices |
0.3 | |||
Healthcare Safety Devices |
0.1 | |||
112.0 | % | |||
* | Calculated as a percentage of net assets |
68 |
VALIC Company II Small Cap Growth Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Shares | Value |
||||||
COMMON STOCKS — 98.7% |
| |||||||
Advanced Materials — 0.9% |
| |||||||
Hexcel Corp. |
18,421 | $ | 1,012,787 | |||||
Aerospace/Defense - Equipment — 1.3% |
||||||||
HEICO Corp.# |
17,695 | 1,453,644 | ||||||
Alternative Waste Technology — 0.9% |
||||||||
Advanced Disposal Services, Inc.† |
44,777 | 979,721 | ||||||
Applications Software — 1.7% |
||||||||
HubSpot, Inc.† |
18,241 | 1,085,339 | ||||||
Paycom Software, Inc.†# |
14,391 | 774,668 | ||||||
1,860,007 | ||||||||
Auto Repair Centers — 0.6% |
||||||||
Monro Muffler Brake, Inc.# |
12,163 | 699,372 | ||||||
Banks - Commercial — 2.2% |
||||||||
Signature Bank† |
4,461 | 702,652 | ||||||
Texas Capital Bancshares, Inc.† |
19,312 | 1,721,665 | ||||||
2,424,317 | ||||||||
Building & Construction Products - Misc. — 3.0% |
||||||||
Fortune Brands Home & Security, Inc. |
14,407 | 833,157 | ||||||
Summit Materials, Inc., Class A† |
45,881 | 1,096,097 | ||||||
Trex Co., Inc.†# |
21,485 | 1,461,195 | ||||||
3,390,449 | ||||||||
Building Products - Air & Heating — 1.1% |
||||||||
Lennox International, Inc. |
7,794 | 1,283,048 | ||||||
Building Products - Cement — 1.3% |
||||||||
Eagle Materials, Inc. |
14,286 | 1,481,601 | ||||||
Building Products - Doors & Windows — 2.3% |
||||||||
JELD-WEN Holding, Inc.† |
23,078 | 720,957 | ||||||
Masonite International Corp.† |
23,372 | 1,825,353 | ||||||
2,546,310 | ||||||||
Building - Residential/Commercial — 0.6% |
||||||||
TRI Pointe Group, Inc.† |
56,279 | 671,971 | ||||||
Casino Hotels — 1.4% |
||||||||
Boyd Gaming Corp.†# |
78,482 | 1,543,741 | ||||||
Commercial Services — 0.9% |
||||||||
CoStar Group, Inc.† |
4,945 | 1,004,725 | ||||||
Computer Software — 1.9% |
||||||||
Cornerstone OnDemand, Inc.† |
19,587 | 818,149 | ||||||
Envestnet, Inc.† |
35,159 | 1,358,895 | ||||||
2,177,044 | ||||||||
Computers — 0.4% |
||||||||
Nutanix, Inc., Class A†# |
14,827 | 444,662 | ||||||
Computers - Memory Devices — 0.3% |
||||||||
Nimble Storage, Inc.†# |
41,158 | 373,303 | ||||||
Cosmetics & Toiletries — 0.8% |
||||||||
elf Beauty, Inc.†# |
31,903 | 883,713 | ||||||
Diagnostic Equipment — 1.0% |
||||||||
GenMark Diagnostics, Inc.† |
96,738 | 1,095,074 | ||||||
Distribution/Wholesale — 2.3% |
||||||||
H&E Equipment Services, Inc. |
33,900 | 889,536 | ||||||
Pool Corp. |
10,709 | 1,228,430 | ||||||
Watsco, Inc. |
2,860 | 424,052 | ||||||
2,542,018 | ||||||||
Diversified Manufacturing Operations — 0.6% |
||||||||
Carlisle Cos., Inc. |
6,713 | 693,453 | ||||||
Security Description | Shares | Value |
||||||
Drug Delivery Systems — 1.1% |
||||||||
Nektar Therapeutics†# |
47,054 | $ | 615,466 | |||||
Revance Therapeutics, Inc.†# |
29,692 | 623,532 | ||||||
1,238,998 | ||||||||
E-Commerce/Products — 0.8% |
||||||||
Wayfair, Inc., Class A†# |
25,075 | 948,086 | ||||||
E-Commerce/Services — 1.9% |
||||||||
GrubHub, Inc.†# |
30,811 | 1,080,234 | ||||||
Trade Desk, Inc., Class A†# |
24,202 | 1,021,566 | ||||||
2,101,800 | ||||||||
E-Services/Consulting — 1.1% |
||||||||
Shopify, Inc.† |
21,395 | 1,266,798 | ||||||
Educational Software — 1.6% |
||||||||
2U, Inc.† |
31,381 | 1,146,975 | ||||||
Instructure, Inc.†# |
26,672 | 610,789 | ||||||
1,757,764 | ||||||||
Electric Products - Misc. — 1.5% |
||||||||
Littelfuse, Inc. |
10,161 | 1,640,493 | ||||||
Electronic Components - Semiconductors — 5.7% |
||||||||
Advanced Micro Devices, Inc.†# |
71,297 | 1,030,955 | ||||||
Cavium, Inc.†# |
28,228 | 1,849,216 | ||||||
Inphi Corp.† |
23,310 | 1,094,171 | ||||||
MACOM Technology Solutions Holdings, Inc.† |
25,083 | 1,156,076 | ||||||
Monolithic Power Systems, Inc. |
14,800 | 1,301,956 | ||||||
6,432,374 | ||||||||
Enterprise Software/Service — 4.9% |
||||||||
Atlassian Corp. PLC, Class A† |
38,153 | 1,085,071 | ||||||
Benefitfocus, Inc.†# |
23,270 | 617,818 | ||||||
Evolent Health, Inc., Class A†# |
64,227 | 1,265,272 | ||||||
Guidewire Software, Inc.† |
20,306 | 1,109,520 | ||||||
Tyler Technologies, Inc.† |
3,517 | 533,353 | ||||||
Veeva Systems, Inc., Class A† |
20,504 | 895,820 | ||||||
5,506,854 | ||||||||
Entertainment Software — 1.6% |
||||||||
Take-Two Interactive Software, Inc.†# |
31,854 | 1,815,041 | ||||||
Finance - Investment Banker/Broker — 1.6% |
||||||||
Evercore Partners, Inc., Class A |
22,015 | 1,751,293 | ||||||
Food - Misc./Diversified — 0.7% |
||||||||
Snyder’s-Lance, Inc.# |
19,127 | 757,047 | ||||||
Food-Retail — 0.5% |
||||||||
Sprouts Farmers Market, Inc.†# |
29,693 | 548,133 | ||||||
Food - Wholesale/Distribution — 0.7% |
||||||||
Performance Food Group Co.† |
33,153 | 782,411 | ||||||
Footwear & Related Apparel — 0.9% |
||||||||
Wolverine World Wide, Inc.# |
42,040 | 1,058,147 | ||||||
Healthcare Safety Devices — 0.1% |
||||||||
Unilife Corp.†# |
36,964 | 70,601 | ||||||
Internet Application Software — 1.0% |
||||||||
Zendesk, Inc.† |
41,368 | 1,126,451 | ||||||
Internet Security — 1.3% |
||||||||
Imperva, Inc.† |
12,954 | 531,114 | ||||||
Proofpoint, Inc.†# |
11,940 | 940,514 | ||||||
1,471,628 | ||||||||
Internet Telephone — 1.3% |
||||||||
RingCentral, Inc., Class A† |
54,354 | 1,451,252 | ||||||
69 |
VALIC Company II Small Cap Growth Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares |
Value |
||||||
COMMON STOCKS (continued) |
||||||||
Investment Companies — 0.7% |
||||||||
PennantPark Investment Corp. |
86,903 | $ | 740,414 | |||||
Investment Management/Advisor Services — 1.5% |
||||||||
Financial Engines, Inc.# |
32,151 | 1,424,290 | ||||||
WisdomTree Investments, Inc.# |
27,811 | 253,358 | ||||||
1,677,648 | ||||||||
Machinery - Construction & Mining — 0.7% |
||||||||
Oshkosh Corp. |
11,267 | 764,917 | ||||||
Machinery - General Industrial — 1.0% |
||||||||
Middleby Corp.† |
8,140 | 1,129,099 | ||||||
Machinery - Pumps — 1.1% |
||||||||
Graco, Inc. |
13,638 | 1,237,785 | ||||||
Medical Imaging Systems — 0.6% |
||||||||
Novadaq Technologies, Inc.† |
96,476 | 700,416 | ||||||
Medical Labs & Testing Services — 0.7% |
||||||||
Teladoc, Inc.†# |
37,582 | 828,683 | ||||||
Medical Products — 1.9% |
||||||||
K2M Group Holdings, Inc.† |
44,381 | 889,839 | ||||||
Nevro Corp.†# |
13,009 | 1,248,734 | ||||||
2,138,573 | ||||||||
Medical - Biomedical/Gene — 7.6% |
||||||||
Acceleron Pharma, Inc.† |
17,805 | 475,750 | ||||||
Bellicum Pharmaceuticals, Inc.†# |
37,962 | 468,071 | ||||||
Exact Sciences Corp.†# |
47,344 | 1,018,843 | ||||||
FibroGen, Inc.† |
20,137 | 503,425 | ||||||
Halozyme Therapeutics, Inc.†# |
66,110 | 847,530 | ||||||
Insmed, Inc.† |
36,796 | 586,160 | ||||||
Kite Pharma, Inc.†# |
16,708 | 1,182,425 | ||||||
REGENXBIO, Inc.† |
22,638 | 416,539 | ||||||
Sage Therapeutics, Inc.†# |
16,568 | 1,116,683 | ||||||
Spark Therapeutics, Inc.† |
12,101 | 771,802 | ||||||
Ultragenyx Pharmaceutical, Inc.†# |
5,907 | 502,568 | ||||||
Versartis, Inc.† |
26,493 | 578,872 | ||||||
8,468,668 | ||||||||
Medical - Drugs — 3.6% |
||||||||
ACADIA Pharmaceuticals, Inc.†# |
16,288 | 620,736 | ||||||
Coherus Biosciences, Inc.† |
28,088 | 662,877 | ||||||
Horizon Pharma PLC†# |
68,056 | 1,092,299 | ||||||
Ignyta, Inc.† |
44,272 | 389,593 | ||||||
TESARO, Inc.†# |
1,368 | 257,690 | ||||||
TherapeuticsMD, Inc.†# |
153,523 | 964,124 | ||||||
3,987,319 | ||||||||
Medical - HMO — 1.0% |
||||||||
WellCare Health Plans, Inc.† |
8,135 | 1,148,662 | ||||||
Medical - Hospitals — 1.2% |
||||||||
Acadia Healthcare Co., Inc.†# |
29,397 | 1,314,634 | ||||||
Miscellaneous Manufacturing — 1.5% |
||||||||
John Bean Technologies Corp. |
18,457 | 1,650,056 | ||||||
Oil Companies - Exploration & Production — 1.6% |
||||||||
Diamondback Energy, Inc.† |
5,183 | 522,757 | ||||||
Jagged Peak Energy, Inc.† |
42,022 | 578,643 | ||||||
RSP Permian, Inc.† |
17,434 | 688,469 | ||||||
1,789,869 | ||||||||
Patient Monitoring Equipment — 0.8% |
||||||||
Insulet Corp.†# |
20,026 | 872,333 | ||||||
Real Estate Investment Trusts — 1.2% |
||||||||
CubeSmart |
21,438 | 584,185 |
Security Description | Shares | Value (Note 2) |
||||||
Real Estate Investment Trusts (continued) |
||||||||
Highwoods Properties, Inc. |
13,608 | $ | 714,284 | |||||
1,298,469 | ||||||||
Real Estate Management/Services — 1.3% |
||||||||
RE/MAX Holdings, Inc., Class A |
25,344 | 1,457,280 | ||||||
Resort/Theme Parks — 1.1% |
||||||||
Vail Resorts, Inc. |
7,074 | 1,281,667 | ||||||
Retail - Apparel/Shoe — 1.5% |
||||||||
Burlington Stores, Inc.† |
12,223 | 1,087,969 | ||||||
Tailored Brands, Inc.# |
25,498 | 589,259 | ||||||
1,677,228 | ||||||||
Retail - Automobile — 2.4% |
||||||||
Lithia Motors, Inc., Class A# |
11,470 | 1,097,335 | ||||||
Penske Automotive Group, Inc. |
7,910 | 397,873 | ||||||
Rush Enterprises, Inc., Class A† |
33,030 | 1,138,874 | ||||||
2,634,082 | ||||||||
Retail - Building Products — 0.6% |
||||||||
Tile Shop Holdings, Inc.† |
38,668 | 680,557 | ||||||
Retail - Convenience Store — 0.8% |
||||||||
Casey’s General Stores, Inc. |
8,315 | 952,733 | ||||||
Retail - Discount — 0.9% |
||||||||
Ollie’s Bargain Outlet Holdings, Inc.†# |
30,410 | 953,353 | ||||||
Retail - Pet Food & Supplies — 0.6% |
||||||||
Freshpet, Inc.†# |
66,692 | 673,589 | ||||||
Retail - Restaurants — 0.9% |
||||||||
Texas Roadhouse, Inc. |
24,992 | 1,057,162 | ||||||
Savings & Loans/Thrifts — 0.7% |
||||||||
BofI Holding, Inc.†# |
23,520 | 741,821 | ||||||
Semiconductor Equipment — 1.0% |
||||||||
MKS Instruments, Inc.# |
16,347 | 1,072,363 | ||||||
Steel Pipe & Tube — 0.8% |
||||||||
Advanced Drainage Systems, Inc. |
43,188 | 952,295 | ||||||
Telecom Equipment - Fiber Optics — 0.6% |
||||||||
Ciena Corp.† |
25,589 | 674,014 | ||||||
Therapeutics — 1.5% |
||||||||
Axovant Sciences, Ltd.† |
23,256 | 295,584 | ||||||
Neurocrine Biosciences, Inc.†# |
12,260 | 541,401 | ||||||
Portola Pharmaceuticals, Inc.† |
25,929 | 899,218 | ||||||
1,736,203 | ||||||||
Transport - Truck — 1.7% |
||||||||
Old Dominion Freight Line, Inc. |
12,897 | 1,183,429 | ||||||
XPO Logistics, Inc.† |
14,288 | 728,545 | ||||||
1,911,974 | ||||||||
Web Hosting/Design — 1.2% |
||||||||
GoDaddy, Inc., Class A†# |
36,282 | 1,336,992 | ||||||
Wireless Equipment — 0.6% |
||||||||
Quantenna Communications, Inc.†# |
30,910 | 647,255 | ||||||
Total Long-Term Investment Securities |
||||||||
(cost $90,690,402) |
110,474,244 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 13.3% |
| |||||||
Registered Investment Companies — 11.8% |
| |||||||
State Street Navigator Securities Lending Government Money Market Portfolio 0.50%(1)(2) |
$ | 13,254,149 | 13,254,149 | |||||
70 |
VALIC Company II Small Cap Growth Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal |
Value (Note 2) |
||||||
SHORT-TERM INVESTMENT SECURITIES (continued) |
| |||||||
Time Deposits — 1.5% |
| |||||||
Euro Time Deposit with State Street Bank and Trust Co. 0.07% due 03/01/2017 |
$ | 1,653,000 | $ | 1,653,000 | ||||
Total Short-Term Investment Securities |
||||||||
(cost $14,907,149) |
14,907,149 | |||||||
TOTAL INVESTMENTS |
||||||||
(cost $105,597,551)(3) |
112.0 | % | 125,381,393 | |||||
Liabilities in excess of other assets |
(12.0 | ) | (13,474,100 | ) | ||||
NET ASSETS |
100.0 | % | $ | 111,907,293 | ||||
# | The security or a portion thereof is out on loan (see Note 2). |
† | Non-income producing security |
(1) | At February 28, 2017, the Fund had loaned securities with a total value of $24,743,772. This was secured by collateral of $13,254,149, which was received in cash and subsequently invested in short-term investments currently valued at $13,254,149 as reported in the Portfolio of Investments. Additional collateral of $12,246,789 was received in the form of fixed income pooled securities, which the Fund cannot sell or repledge. |
The components of the fixed income pooled securities referenced above are as follows: |
Securities |
Coupon Range |
Maturity Date Range |
Value as of February 28, 2017 | |||
Federal Home Loan Mtg. Corp. |
2.50% to 4.50% | 11/01/2027 to 09/01/2044 | $ 171,621 | |||
Federal National Mtg. Assoc. |
2.00% to 4.25% | 01/01/2032 to 02/25/2044 | 299,204 | |||
Government National Mtg. Assoc. |
2.50% to 3.50% | 11/20/2027 to 11/20/2046 | 688,491 | |||
United States Treasury Bills |
0.00% | 03/02/2017 to 12/07/2017 | 2,892,601 | |||
United States Treasury Notes/Bonds |
zero coupon to 8.75% |
04/15/2017 to 11/15/2046 | 8,194,872 |
(2) | The rate shown is a 7-day yield as of February 28, 2017. |
(3) | See Note 5 for cost of investments on a tax basis. |
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 - Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Common Stocks |
$ | 110,474,244 | $ | — | $ | — | $ | 110,474,244 | ||||||||
Short-Term Investment Securities: |
||||||||||||||||
Registered Investment Companies |
13,254,149 | — | — | 13,254,149 | ||||||||||||
Time Deposits |
— | 1,653,000 | — | 1,653,000 | ||||||||||||
Total Investments at Value |
$ | 123,728,393 | $ | 1,653,000 | $ | — | $ | 125,381,393 | ||||||||
* For a detailed presentation of investments, please refer to the Portfolio of Investments.
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
See Notes to Financial Statements
71 |
VALIC Company II Small Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Banks — Commercial |
19.3 | % | ||
Real Estate Investment Trusts |
10.6 | |||
Registered Investment Companies |
4.8 | |||
Savings & Loans/Thrifts |
3.1 | |||
Electronic Components — Misc. |
3.0 | |||
Repurchase Agreements |
2.6 | |||
Electric — Integrated |
2.6 | |||
Medical — Biomedical/Gene |
2.0 | |||
Gas — Distribution |
1.9 | |||
Insurance — Life/Health |
1.8 | |||
Oil Companies — Exploration & Production |
1.7 | |||
Computer Services |
1.5 | |||
Retail — Apparel/Shoe |
1.5 | |||
Oil — Field Services |
1.4 | |||
Auto/Truck Parts & Equipment — Original |
1.3 | |||
Transport — Truck |
1.3 | |||
Engineering/R&D Services |
1.2 | |||
Medical — HMO |
1.2 | |||
Electronic Components — Semiconductors |
1.2 | |||
Consulting Services |
1.2 | |||
Insurance — Property/Casualty |
1.1 | |||
Aerospace/Defense — Equipment |
1.1 | |||
Steel — Producers |
1.0 | |||
Office Supplies & Forms |
1.0 | |||
Energy — Alternate Sources |
0.9 | |||
Human Resources |
0.9 | |||
Finance — Investment Banker/Broker |
0.9 | |||
Consumer Products — Misc. |
0.9 | |||
Rubber — Tires |
0.8 | |||
Entertainment Software |
0.8 | |||
Printing — Commercial |
0.8 | |||
Machinery — Construction & Mining |
0.8 | |||
Airlines |
0.7 | |||
Electronic Parts Distribution |
0.6 | |||
Satellite Telecom |
0.6 | |||
Banks — Mortgage |
0.6 | |||
Telecom Services |
0.6 | |||
Medical — Wholesale Drug Distribution |
0.6 | |||
Food — Wholesale/Distribution |
0.6 | |||
Rental Auto/Equipment |
0.6 | |||
Financial Guarantee Insurance |
0.6 | |||
Semiconductor Equipment |
0.6 | |||
Oil Refining & Marketing |
0.6 | |||
Machinery — General Industrial |
0.6 | |||
Real Estate Operations & Development |
0.5 | |||
Tobacco |
0.5 | |||
Chemicals — Specialty |
0.5 | |||
Paper & Related Products |
0.5 | |||
Independent Power Producers |
0.5 | |||
Auto — Truck Trailers |
0.5 | |||
Water |
0.5 | |||
Wire & Cable Products |
0.4 | |||
Telephone — Integrated |
0.4 | |||
Retail — Office Supplies |
0.4 | |||
Metal Processors & Fabrication |
0.4 | |||
Metal Products — Distribution |
0.4 | |||
Chemicals — Fibers |
0.4 | |||
Rubber/Plastic Products |
0.4 | |||
Auto/Truck Parts & Equipment — Replacement |
0.4 | |||
Hotels/Motels |
0.3 | |||
Schools |
0.3 | |||
Semiconductor Components — Integrated Circuits |
0.3 | |||
Networking Products |
0.3 | |||
Insurance — Multi-line |
0.3 | |||
Insurance — Reinsurance |
0.3 | |||
Medical Instruments |
0.3 | |||
Footwear & Related Apparel |
0.3 | |||
Transport — Air Freight |
0.3 | |||
Electronic Design Automation |
0.3 | |||
Chemicals — Diversified |
0.3 | |||
Retail — Misc./Diversified |
0.3 | |||
Broadcast Services/Program |
0.3 |
Medical — Drugs |
0.3 | |||
Oil & Gas Drilling |
0.3 | |||
Retail — Restaurants |
0.3 | |||
Investment Management/Advisor Services |
0.3 | |||
Data Processing/Management |
0.3 | |||
E-Commerce/Services |
0.3 | |||
Circuit Boards |
0.2 | |||
Investment Companies |
0.2 | |||
Food — Misc./Diversified |
0.2 | |||
Distribution/Wholesale |
0.2 | |||
Retail — Home Furnishings |
0.2 | |||
Building — Maintenance & Services |
0.2 | |||
Finance — Consumer Loans |
0.2 | |||
Retail — Hair Salons |
0.2 | |||
Power Converter/Supply Equipment |
0.2 | |||
Oil Field Machinery & Equipment |
0.2 | |||
Containers — Paper/Plastic |
0.2 | |||
Retail — Jewelry |
0.2 | |||
Retail — Pawn Shops |
0.2 | |||
Finance — Mortgage Loan/Banker |
0.2 | |||
Medical — Hospitals |
0.2 | |||
Television |
0.2 | |||
Pipelines |
0.2 | |||
Applications Software |
0.2 | |||
Machinery — Farming |
0.2 | |||
Engines — Internal Combustion |
0.2 | |||
Wireless Equipment |
0.2 | |||
Housewares |
0.2 | |||
Food — Dairy Products |
0.2 | |||
Metal — Iron |
0.2 | |||
Electric — Generation |
0.2 | |||
Building Products — Wood |
0.2 | |||
Coal |
0.2 | |||
Transport — Services |
0.1 | |||
Pollution Control |
0.1 | |||
Security Services |
0.1 | |||
Diversified Operations/Commercial Services |
0.1 | |||
Radio |
0.1 | |||
Travel Services |
0.1 | |||
Electric — Distribution |
0.1 | |||
Building Products — Doors & Windows |
0.1 | |||
Building — Residential/Commercial |
0.1 | |||
Retail — Regional Department Stores |
0.1 | |||
E-Marketing/Info |
0.1 | |||
Building & Construction — Misc. |
0.1 | |||
Medical — Outpatient/Home Medical |
0.1 | |||
Building — Heavy Construction |
0.1 | |||
Transport — Equipment & Leasing |
0.1 | |||
Machinery — Material Handling |
0.1 | |||
Publishing — Newspapers |
0.1 | |||
Toys |
0.1 | |||
Chemicals — Other |
0.1 | |||
Gambling (Non-Hotel) |
0.1 | |||
Medical — Generic Drugs |
0.1 | |||
Medical Products |
0.1 | |||
Motion Pictures & Services |
0.1 | |||
Therapeutics |
0.1 | |||
Food — Retail |
0.1 | |||
Commercial Services |
0.1 | |||
Golf |
0.1 | |||
Machine Tools & Related Products |
0.1 | |||
Textile — Apparel |
0.1 | |||
Finance — Leasing Companies |
0.1 | |||
Computer Aided Design |
0.1 | |||
Decision Support Software |
0.1 | |||
Drug Delivery Systems |
0.1 | |||
Telecom Equipment — Fiber Optics |
0.1 | |||
Publishing — Books |
0.1 | |||
Industrial Automated/Robotic |
0.1 | |||
104.9 | % | |||
* | Calculated as a percentage of net assets |
72 |
VALIC Company II Small Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS — 97.5% |
| |||||||
Aerospace/Defense - Equipment — 1.1% |
| |||||||
AAR Corp. |
67,000 | $ | 2,306,140 | |||||
Curtiss-Wright Corp. |
18,600 | 1,819,638 | ||||||
Moog, Inc., Class A† |
30,400 | 2,054,432 | ||||||
6,180,210 | ||||||||
Airlines — 0.7% |
| |||||||
Alaska Air Group, Inc. |
14,300 | 1,398,826 | ||||||
JetBlue Airways Corp.† |
5,800 | 115,768 | ||||||
SkyWest, Inc. |
61,000 | 2,144,150 | ||||||
3,658,744 | ||||||||
Applications Software — 0.2% |
| |||||||
Progress Software Corp. |
35,000 | 1,003,800 | ||||||
Auto - Truck Trailers — 0.5% |
| |||||||
Wabash National Corp.# |
123,900 | 2,620,485 | ||||||
Auto/Truck Parts & Equipment - Original — 1.3% |
| |||||||
Cooper-Standard Holding, Inc.† |
19,400 | 2,172,800 | ||||||
Dana, Inc. |
172,100 | 3,250,969 | ||||||
Meritor, Inc.†# |
90,400 | 1,478,040 | ||||||
Metaldyne Performance Group, Inc. |
3,300 | 76,890 | ||||||
6,978,699 | ||||||||
Auto/Truck Parts & Equipment - Replacement — 0.4% |
| |||||||
Douglas Dynamics, Inc. |
59,200 | 1,974,320 | ||||||
Banks - Commercial — 19.3% |
| |||||||
1st Source Corp. |
20,520 | 958,489 | ||||||
Allegiance Bancshares, Inc.†# |
5,600 | 206,640 | ||||||
American National Bankshares, Inc. |
1,100 | 40,205 | ||||||
BancFirst Corp. |
11,040 | 1,052,664 | ||||||
BancorpSouth, Inc. |
64,100 | 1,987,100 | ||||||
Bank of Hawaii Corp.# |
28,080 | 2,371,637 | ||||||
Bank of Marin Bancorp |
600 | 41,100 | ||||||
Banner Corp. |
4,800 | 278,976 | ||||||
Bryn Mawr Bank Corp. |
5,300 | 217,565 | ||||||
Capital Bank Financial Corp., Class A |
31,300 | 1,277,040 | ||||||
Cascade Bancorp† |
30,501 | 251,633 | ||||||
Cathay General Bancorp, Class B |
44,790 | 1,759,351 | ||||||
Central Pacific Financial Corp. |
83,000 | 2,621,140 | ||||||
Central Valley Community Bancorp |
8,500 | 174,590 | ||||||
Century Bancorp, Inc., Class A |
1,418 | 89,759 | ||||||
Citizens & Northern Corp. |
3,300 | 77,451 | ||||||
City Holding Co. |
24,800 | 1,624,400 | ||||||
Columbia Banking System, Inc. |
13,273 | 529,460 | ||||||
Community Bank System, Inc.# |
23,280 | 1,383,065 | ||||||
Community Trust Bancorp, Inc.# |
28,418 | 1,304,386 | ||||||
CU Bancorp† |
4,400 | 172,920 | ||||||
Customers Bancorp, Inc.† |
31,000 | 1,064,230 | ||||||
East West Bancorp, Inc. |
9,573 | 518,091 | ||||||
Enterprise Financial Services Corp. |
32,400 | 1,423,980 | ||||||
Farmers National Banc Corp. |
15,900 | 219,420 | ||||||
FCB Financial Holdings, Inc., Class A† |
63,100 | 3,066,660 | ||||||
Fidelity Southern Corp. |
65,500 | 1,543,835 | ||||||
Financial Institutions, Inc. |
31,400 | 1,073,880 | ||||||
First BanCorp† |
495,600 | 3,161,928 | ||||||
First Bancorp |
5,200 | 156,260 | ||||||
First Busey Corp. |
12,926 | 399,672 | ||||||
First Business Financial Services, Inc.# |
9,600 | 242,112 | ||||||
First Citizens BancShares, Inc., Class A |
2,340 | 833,719 | ||||||
First Commonwealth Financial Corp. |
225,300 | 3,138,429 | ||||||
First Community Bancshares, Inc. |
21,600 | 583,632 | ||||||
First Financial Bancorp |
30,398 | 843,545 | ||||||
First Financial Bankshares, Inc.# |
12,960 | 570,240 | ||||||
First Financial Corp. |
6,000 | 278,700 | ||||||
First Hawaiian, Inc. |
25,300 | 801,504 |
Security Description | Shares | Value (Note 2) |
||||||
Banks - Commercial (continued) |
| |||||||
First Interstate BancSystem, Inc., Class A |
26,000 | $ | 1,140,100 | |||||
First Merchants Corp. |
67,500 | 2,708,100 | ||||||
First Midwest Bancorp, Inc. |
15,800 | 385,994 | ||||||
Franklin Financial Network, Inc.† |
6,400 | 252,160 | ||||||
Fulton Financial Corp. |
117,900 | 2,254,838 | ||||||
Glacier Bancorp, Inc.# |
36,400 | 1,343,888 | ||||||
Great Southern Bancorp, Inc. |
16,700 | 835,835 | ||||||
Great Western Bancorp, Inc.# |
25,400 | 1,085,596 | ||||||
Green Bancorp, Inc.†# |
40,800 | 695,640 | ||||||
Hancock Holding Co. |
126,621 | 6,008,166 | ||||||
Hanmi Financial Corp. |
74,000 | 2,471,600 | ||||||
Heartland Financial USA, Inc. |
14,300 | 708,565 | ||||||
Heritage Financial Corp. |
38,339 | 958,475 | ||||||
Hilltop Holdings, Inc. |
35,500 | 1,007,490 | ||||||
Hope Bancorp, Inc. |
203,227 | 4,349,058 | ||||||
IBERIABANK Corp. |
35,400 | 3,000,150 | ||||||
Independent Bank Corp. |
28,000 | 599,200 | ||||||
Independent Bank Corp./Rockland Trust Co. |
7,000 | 455,000 | ||||||
Kearny Financial Corp. |
13,627 | 209,174 | ||||||
Lakeland Financial Corp. |
7,170 | 325,446 | ||||||
MainSource Financial Group, Inc. |
40,000 | 1,370,000 | ||||||
MB Financial, Inc. |
2,900 | 130,558 | ||||||
Mercantile Bank Corp. |
3,300 | 110,352 | ||||||
Midland States Bancorp, Inc. |
5,100 | 179,316 | ||||||
NBT Bancorp, Inc. |
16,800 | 678,384 | ||||||
OFG Bancorp |
121,900 | 1,572,510 | ||||||
Old Line Bancshares, Inc. |
1,600 | 44,880 | ||||||
Pacific Continental Corp. |
13,400 | 337,010 | ||||||
PacWest Bancorp |
32,700 | 1,801,770 | ||||||
Park Sterling Corp. |
9,075 | 107,630 | ||||||
Peoples Bancorp, Inc. |
13,800 | 448,776 | ||||||
Pinnacle Financial Partners, Inc. |
18,200 | 1,263,080 | ||||||
Preferred Bank |
23,200 | 1,302,448 | ||||||
Premier Financial Bancorp, Inc. |
2,640 | 48,523 | ||||||
PrivateBancorp, Inc. |
45,500 | 2,575,300 | ||||||
Republic Bancorp, Inc., Class A |
7,100 | 245,518 | ||||||
S&T Bancorp, Inc. |
3,780 | 134,530 | ||||||
Sandy Spring Bancorp, Inc. |
4,600 | 198,076 | ||||||
Shore Bancshares, Inc. |
4,100 | 71,217 | ||||||
Sierra Bancorp |
6,100 | 174,704 | ||||||
Simmons First National Corp., Class A |
2,700 | 155,250 | ||||||
South State Corp. |
3,200 | 286,400 | ||||||
Southern National Bancorp of Virginia, Inc. |
4,600 | 78,200 | ||||||
Southside Bancshares, Inc. |
12,946 | 456,088 | ||||||
Southwest Bancorp, Inc. |
29,280 | 780,312 | ||||||
State Bank Financial Corp. |
9,900 | 268,587 | ||||||
Stock Yards Bancorp, Inc.# |
3,250 | 143,650 | ||||||
Stonegate Bank |
7,000 | 324,590 | ||||||
Suffolk Bancorp |
3,020 | 128,471 | ||||||
Texas Capital Bancshares, Inc.† |
8,900 | 793,435 | ||||||
Tompkins Financial Corp. |
3,748 | 336,271 | ||||||
Towne Bank |
3,400 | 110,670 | ||||||
TriCo Bancshares |
38,000 | 1,380,540 | ||||||
TriState Capital Holdings, Inc.† |
16,700 | 393,285 | ||||||
Triumph Bancorp, Inc.† |
8,700 | 234,030 | ||||||
Trustmark Corp.# |
66,300 | 2,190,552 | ||||||
UMB Financial Corp. |
38,160 | 3,007,771 | ||||||
Umpqua Holdings Corp. |
101,214 | 1,903,835 | ||||||
Union Bankshares Corp. |
72,119 | 2,615,035 | ||||||
United Community Banks, Inc. |
86,300 | 2,493,207 | ||||||
Valley National Bancorp |
13,016 | 161,008 | ||||||
Washington Trust Bancorp, Inc. |
6,480 | 351,216 | ||||||
Webster Financial Corp.# |
19,100 | 1,049,163 | ||||||
West Bancorporation, Inc. |
6,830 | 151,285 | ||||||
Westamerica Bancorporation# |
58,924 | 3,408,753 |
73 |
VALIC Company II Small Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS (continued) |
| |||||||
Banks - Commercial (continued) |
| |||||||
Western Alliance Bancorp† |
2,632 | $ | 135,916 | |||||
Wintrust Financial Corp.# |
17,900 | 1,319,230 | ||||||
106,585,215 | ||||||||
Banks - Fiduciary — 0.0% |
||||||||
Boston Private Financial Holdings, Inc. |
7,400 | 127,280 | ||||||
Banks - Mortgage — 0.6% |
||||||||
Walker & Dunlop, Inc.† |
83,300 | 3,386,145 | ||||||
Broadcast Services/Program — 0.3% |
||||||||
TiVo Corp. |
86,200 | 1,594,700 | ||||||
Building & Construction Products - Misc. — 0.0% |
||||||||
Gibraltar Industries, Inc.† |
4,080 | 169,116 | ||||||
Building & Construction - Misc. — 0.1% |
||||||||
MYR Group, Inc.† |
15,600 | 585,156 | ||||||
Building Products - Doors & Windows — 0.1% |
||||||||
JELD-WEN Holding, Inc.† |
21,800 | 681,032 | ||||||
Building Products - Wood — 0.2% |
||||||||
Universal Forest Products, Inc. |
8,600 | 823,966 | ||||||
Building - Heavy Construction — 0.1% |
||||||||
Orion Group Holdings, Inc.† |
6,500 | 60,840 | ||||||
Tutor Perini Corp.†# |
17,000 | 517,650 | ||||||
578,490 | ||||||||
Building - Maintenance & Services — 0.2% |
||||||||
ABM Industries, Inc.# |
29,400 | 1,199,226 | ||||||
Building - Residential/Commercial — 0.1% |
||||||||
Beazer Homes USA, Inc.†# |
41,200 | 502,640 | ||||||
Hovnanian Enterprises, Inc., Class A†# |
41,700 | 98,829 | ||||||
UCP, Inc., Class A† |
5,400 | 58,590 | ||||||
660,059 | ||||||||
Chemicals - Diversified — 0.3% |
||||||||
Innophos Holdings, Inc.# |
20,500 | 1,086,295 | ||||||
Innospec, Inc. |
9,200 | 600,760 | ||||||
1,687,055 | ||||||||
Chemicals - Fibers — 0.4% |
||||||||
Rayonier Advanced Materials, Inc.# |
162,900 | 2,160,054 | ||||||
Chemicals - Other — 0.1% |
||||||||
American Vanguard Corp. |
27,800 | 437,850 | ||||||
Chemicals - Specialty — 0.5% |
||||||||
Chemours Co. |
4,700 | 158,202 | ||||||
Minerals Technologies, Inc. |
34,760 | 2,685,210 | ||||||
OMNOVA Solutions, Inc.† |
5,300 | 49,025 | ||||||
2,892,437 | ||||||||
Circuit Boards — 0.2% |
||||||||
TTM Technologies, Inc.†# |
83,200 | 1,344,512 | ||||||
Coal — 0.1% |
||||||||
SunCoke Energy, Inc.† |
19,700 | 192,075 | ||||||
Westmoreland Coal Co.† |
39,600 | 571,824 | ||||||
763,899 | ||||||||
Commercial Services — 0.1% |
||||||||
RPX Corp.† |
31,300 | 336,475 | ||||||
Commercial Services - Finance — 0.0% |
||||||||
EVERTEC, Inc. |
5,900 | 99,415 | ||||||
Computer Aided Design — 0.1% |
||||||||
Aspen Technology, Inc.† |
4,900 | 284,886 | ||||||
Security Description | Shares | Value (Note 2) |
||||||
Computer Services — 1.5% |
||||||||
Convergys Corp. |
3,300 | $ | 72,204 | |||||
Engility Holdings, Inc.† |
15,200 | 475,912 | ||||||
Insight Enterprises, Inc.† |
87,300 | 3,698,028 | ||||||
Sykes Enterprises, Inc.† |
33,400 | 909,148 | ||||||
Unisys Corp.†# |
238,700 | 3,317,930 | ||||||
8,473,222 | ||||||||
Consulting Services — 1.2% |
||||||||
CRA International, Inc. |
4,600 | 164,956 | ||||||
Franklin Covey Co.†# |
8,400 | 150,780 | ||||||
FTI Consulting, Inc.† |
67,300 | 2,708,152 | ||||||
Huron Consulting Group, Inc.† |
50,800 | 2,207,260 | ||||||
Vectrus, Inc.† |
49,300 | 1,193,553 | ||||||
6,424,701 | ||||||||
Consumer Products - Misc. — 0.9% |
||||||||
Central Garden & Pet Co., Class A† |
141,560 | 4,522,842 | ||||||
CSS Industries, Inc. |
7,200 | 176,976 | ||||||
4,699,818 | ||||||||
Containers - Paper/Plastic — 0.2% |
||||||||
Berry Plastics Group, Inc.† |
5,600 | 281,848 | ||||||
Graphic Packaging Holding Co. |
62,810 | 838,513 | ||||||
1,120,361 | ||||||||
Data Processing/Management — 0.3% |
||||||||
Fair Isaac Corp. |
10,920 | 1,420,364 | ||||||
Decision Support Software — 0.1% |
||||||||
QAD, Inc., Class A |
10,300 | 282,735 | ||||||
Diagnostic Kits — 0.0% |
||||||||
Quidel Corp.† |
1,300 | 27,300 | ||||||
Distribution/Wholesale — 0.2% |
||||||||
Anixter International, Inc.† |
1,100 | 91,630 | ||||||
Essendant, Inc. |
25,000 | 398,250 | ||||||
Titan Machinery, Inc.†# |
52,200 | 738,630 | ||||||
1,228,510 | ||||||||
Diversified Operations/Commercial Services — 0.1% |
||||||||
Viad Corp. |
15,700 | 741,040 | ||||||
Drug Delivery Systems — 0.1% |
||||||||
Revance Therapeutics, Inc.†# |
12,900 | 270,900 | ||||||
E-Commerce/Services — 0.3% |
||||||||
RetailMeNot, Inc.† |
154,000 | 1,378,300 | ||||||
E-Marketing/Info — 0.1% |
||||||||
Liquidity Services, Inc.† |
9,400 | 76,610 | ||||||
Rubicon Project, Inc.† |
59,800 | 522,652 | ||||||
599,262 | ||||||||
Electric Products - Misc. — 0.0% |
||||||||
Graham Corp. |
4,400 | 96,492 | ||||||
Novanta, Inc.† |
4,400 | 106,920 | ||||||
203,412 | ||||||||
Electric - Distribution — 0.1% |
||||||||
Genie Energy, Ltd., Class B |
12,800 | 69,760 | ||||||
Spark Energy, Inc., Class A# |
23,000 | 621,000 | ||||||
690,760 | ||||||||
Electric - Generation — 0.2% |
||||||||
Atlantic Power Corp.†# |
356,700 | 838,245 | ||||||
Electric - Integrated — 2.6% |
||||||||
Avista Corp. |
42,480 | 1,693,678 | ||||||
El Paso Electric Co. |
62,900 | 3,072,665 |
74 |
VALIC Company II Small Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS (continued) |
| |||||||
Electric - Integrated (continued) |
||||||||
IDACORP, Inc. |
17,300 | $ | 1,434,689 | |||||
MGE Energy, Inc.# |
5,500 | 351,725 | ||||||
NorthWestern Corp. |
34,618 | 2,025,153 | ||||||
Portland General Electric Co. |
103,800 | 4,705,254 | ||||||
Unitil Corp. |
13,400 | 597,640 | ||||||
Westar Energy, Inc. |
9,900 | 534,402 | ||||||
14,415,206 | ||||||||
Electronic Components - Misc. — 3.0% |
||||||||
Bel Fuse, Inc., Class B |
36,700 | 957,870 | ||||||
Benchmark Electronics, Inc.† |
159,621 | 4,964,213 | ||||||
Kimball Electronics, Inc.† |
43,300 | 697,130 | ||||||
Knowles Corp.†# |
90,500 | 1,713,165 | ||||||
Plexus Corp.† |
17,400 | 975,618 | ||||||
Sanmina Corp.† |
86,800 | 3,385,200 | ||||||
Stoneridge, Inc.† |
68,400 | 1,155,276 | ||||||
Vishay Intertechnology, Inc.# |
176,300 | 2,794,355 | ||||||
Vishay Precision Group, Inc.†# |
8,700 | 140,070 | ||||||
16,782,897 | ||||||||
Electronic Components - Semiconductors — 1.2% |
||||||||
Advanced Micro Devices, Inc.†# |
15,700 | 227,022 | ||||||
Alpha & Omega Semiconductor, Ltd.† |
87,700 | 1,689,102 | ||||||
Amkor Technology, Inc.† |
271,800 | 2,669,076 | ||||||
InvenSense, Inc.† |
26,900 | 332,215 | ||||||
IXYS Corp. |
126,100 | 1,557,335 | ||||||
6,474,750 | ||||||||
Electronic Design Automation — 0.3% |
||||||||
Mentor Graphics Corp. |
46,200 | 1,714,020 | ||||||
Electronic Parts Distribution — 0.6% |
||||||||
SYNNEX Corp. |
9,600 | 1,122,432 | ||||||
Tech Data Corp.† |
27,600 | 2,401,200 | ||||||
3,523,632 | ||||||||
Energy - Alternate Sources — 0.9% |
||||||||
First Solar, Inc.†# |
15,700 | 568,183 | ||||||
FutureFuel Corp. |
18,500 | 244,755 | ||||||
Green Plains, Inc.# |
7,700 | 192,885 | ||||||
Pacific Ethanol, Inc.† |
37,500 | 294,375 | ||||||
Renewable Energy Group, Inc.†# |
11,000 | 97,900 | ||||||
REX American Resources Corp.† |
33,000 | 2,746,260 | ||||||
TerraForm Global, Inc., Class A |
247,600 | 1,077,060 | ||||||
5,221,418 | ||||||||
Engineering/R&D Services — 1.2% |
||||||||
Argan, Inc. |
6,100 | 420,290 | ||||||
EMCOR Group, Inc. |
77,198 | 4,746,133 | ||||||
VSE Corp. |
35,500 | 1,444,140 | ||||||
6,610,563 | ||||||||
Engines - Internal Combustion — 0.2% |
||||||||
Briggs & Stratton Corp. |
46,000 | 984,400 | ||||||
Enterprise Software/Service — 0.0% |
||||||||
Donnelley Financial Solutions, Inc.† |
1,200 | 27,732 | ||||||
Entertainment Software — 0.8% |
||||||||
Take-Two Interactive Software, Inc.†# |
78,700 | 4,484,326 | ||||||
Environmental Consulting & Engineering — 0.0% |
||||||||
TRC Cos., Inc.† |
8,700 | 89,175 | ||||||
Finance - Consumer Loans — 0.2% |
||||||||
Enova International, Inc.† |
20,900 | 299,915 | ||||||
Nelnet, Inc., Class A# |
15,500 | 694,245 | ||||||
Regional Management Corp.† |
9,700 | 203,603 | ||||||
1,197,763 | ||||||||
Security Description | Shares | Value (Note 2) |
||||||
Finance - Investment Banker/Broker — 0.9% |
||||||||
Houlihan Lokey, Inc.# |
5,500 | $ | 173,195 | |||||
INTL. FCStone, Inc.† |
6,800 | 256,700 | ||||||
Investment Technology Group, Inc. |
8,600 | 172,172 | ||||||
KCG Holdings, Inc., Class A† |
126,300 | 1,749,255 | ||||||
Oppenheimer Holdings, Inc., Class A |
7,800 | 129,480 | ||||||
Piper Jaffray Cos. |
15,700 | 1,110,775 | ||||||
Stifel Financial Corp.† |
23,700 | 1,278,852 | ||||||
4,870,429 | ||||||||
Finance - Leasing Companies — 0.1% |
||||||||
Marlin Business Services Corp. |
12,900 | 307,020 | ||||||
Finance - Mortgage Loan/Banker — 0.2% |
||||||||
Arlington Asset Investment Corp., Class A# |
7,500 | 110,550 | ||||||
FNFV Group† |
11,400 | 141,930 | ||||||
PennyMac Financial Services, Inc., Class A†# |
46,000 | 821,100 | ||||||
1,073,580 | ||||||||
Finance - Other Services — 0.1% |
||||||||
BGC Partners, Inc., Class A |
44,000 | 496,320 | ||||||
Financial Guarantee Insurance — 0.6% |
||||||||
Assured Guaranty, Ltd.# |
7,900 | 324,769 | ||||||
MBIA, Inc.†# |
222,200 | 2,293,104 | ||||||
MGIC Investment Corp.† |
41,900 | 446,235 | ||||||
3,064,108 | ||||||||
Food - Dairy Products — 0.2% |
||||||||
Dean Foods Co. |
50,700 | 924,768 | ||||||
Food - Flour & Grain — 0.0% |
||||||||
Post Holdings, Inc.† |
2,850 | 233,329 | ||||||
Food - Misc./Diversified — 0.2% |
||||||||
Darling Ingredients, Inc.† |
95,900 | 1,247,659 | ||||||
Food - Retail — 0.1% |
||||||||
SUPERVALU, Inc.†# |
71,500 | 270,270 | ||||||
Village Super Market, Inc., Class A |
2,600 | 76,986 | ||||||
347,256 | ||||||||
Food - Wholesale/Distribution — 0.6% |
||||||||
Fresh Del Monte Produce, Inc.# |
7,300 | 422,451 | ||||||
SpartanNash Co. |
71,100 | 2,481,390 | ||||||
US Foods Holding Corp.† |
9,800 | 269,990 | ||||||
3,173,831 | ||||||||
Footwear & Related Apparel — 0.3% |
||||||||
Iconix Brand Group, Inc.† |
228,400 | 1,760,964 | ||||||
Gambling (Non-Hotel) — 0.1% |
||||||||
Pinnacle Entertainment, Inc.† |
22,900 | 397,544 | ||||||
Gas - Distribution — 1.9% |
||||||||
New Jersey Resources Corp. |
34,200 | 1,347,480 | ||||||
Northwest Natural Gas Co. |
38,200 | 2,295,820 | ||||||
Southwest Gas Corp. |
45,540 | 3,895,036 | ||||||
Spire, Inc.# |
39,400 | 2,596,460 | ||||||
WGL Holdings, Inc. |
6,400 | 534,336 | ||||||
10,669,132 | ||||||||
Golf — 0.1% |
||||||||
Acushnet Holdings Corp.† |
18,600 | 325,686 | ||||||
Hotels/Motels — 0.3% |
||||||||
La Quinta Holdings, Inc.† |
138,200 | 1,915,452 | ||||||
Housewares — 0.2% |
||||||||
Lifetime Brands, Inc. |
29,800 | 432,100 | ||||||
NACCO Industries, Inc., Class A |
7,800 | 503,100 | ||||||
935,200 | ||||||||
75 |
VALIC Company II Small Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS (continued) |
| |||||||
Human Resources — 0.9% |
||||||||
Barrett Business Services, Inc. |
20,300 | $ | 1,299,809 | |||||
Cross Country Healthcare, Inc.†# |
116,600 | 1,803,802 | ||||||
Kelly Services, Inc., Class A |
36,400 | 778,232 | ||||||
TriNet Group, Inc.† |
24,600 | 660,510 | ||||||
TrueBlue, Inc.† |
17,500 | 454,125 | ||||||
4,996,478 | ||||||||
Independent Power Producers — 0.5% |
||||||||
Dynegy, Inc.† |
116,500 | 936,660 | ||||||
Ormat Technologies, Inc.# |
30,700 | 1,692,491 | ||||||
2,629,151 | ||||||||
Industrial Automated/Robotic — 0.1% |
||||||||
Hurco Cos., Inc. |
9,500 | 261,250 | ||||||
Insurance - Life/Health — 1.8% |
||||||||
American Equity Investment Life Holding Co. |
104,200 | 2,804,022 | ||||||
CNO Financial Group, Inc. |
202,909 | 4,242,827 | ||||||
Primerica, Inc. |
38,700 | 3,125,025 | ||||||
10,171,874 | ||||||||
Insurance - Multi-line — 0.3% |
||||||||
Horace Mann Educators Corp. |
41,580 | 1,742,202 | ||||||
United Fire Group, Inc. |
2,500 | 105,550 | ||||||
1,847,752 | ||||||||
Insurance - Property/Casualty — 1.1% |
||||||||
AmTrust Financial Services, Inc. |
20,200 | 464,600 | ||||||
Arch Capital Group, Ltd.† |
5,826 | 550,965 | ||||||
Federated National Holding Co. |
7,100 | 142,071 | ||||||
First American Financial Corp. |
19,700 | 769,679 | ||||||
Global Indemnity, Ltd.†# |
2,000 | 79,360 | ||||||
Hallmark Financial Services, Inc.† |
12,500 | 137,750 | ||||||
Kinsale Capital Group, Inc. |
6,200 | 181,970 | ||||||
Navigators Group, Inc. |
10,000 | 550,500 | ||||||
ProAssurance Corp. |
30,080 | 1,777,728 | ||||||
Selective Insurance Group, Inc. |
13,100 | 580,330 | ||||||
Stewart Information Services Corp. |
20,700 | 919,287 | ||||||
Universal Insurance Holdings, Inc.# |
4,300 | 115,885 | ||||||
6,270,125 | ||||||||
Insurance - Reinsurance — 0.3% |
||||||||
Argo Group International Holdings, Ltd. |
11,200 | 749,840 | ||||||
Aspen Insurance Holdings, Ltd. |
10,300 | 577,315 | ||||||
Maiden Holdings, Ltd. |
30,900 | 477,405 | ||||||
1,804,560 | ||||||||
Internet Content - Entertainment — 0.0% |
||||||||
Limelight Networks, Inc.† |
102,100 | 229,725 | ||||||
Internet Content - Information/News — 0.0% |
||||||||
Bankrate, Inc.† |
15,900 | 173,310 | ||||||
Internet Security — 0.0% |
||||||||
VASCO Data Security International, Inc.† |
8,900 | 115,700 | ||||||
Internet Telephone — 0.0% |
||||||||
RingCentral, Inc., Class A† |
3,400 | 90,780 | ||||||
Investment Companies — 0.2% |
||||||||
Acacia Research Corp.† |
222,200 | 1,299,870 | ||||||
Investment Management/Advisor Services — 0.3% |
||||||||
Janus Capital Group, Inc. |
13,700 | 173,442 | ||||||
OM Asset Management PLC |
42,300 | 630,693 | ||||||
Virtus Investment Partners, Inc.# |
4,700 | 515,355 | ||||||
Waddell & Reed Financial, Inc., Class A# |
7,800 | 150,072 | ||||||
1,469,562 | ||||||||
Security Description | Shares | Value (Note 2) |
||||||
Leisure Games — 0.0% |
||||||||
Intrawest Resorts Holdings, Inc.† |
6,800 | $ | 160,208 | |||||
Machine Tools & Related Products — 0.1% |
||||||||
Kennametal, Inc.# |
8,600 | 318,974 | ||||||
Machinery - Construction & Mining — 0.8% |
||||||||
Hyster-Yale Materials Handling, Inc. |
5,800 | 353,162 | ||||||
Joy Global, Inc. |
137,000 | 3,862,030 | ||||||
4,215,192 | ||||||||
Machinery - Farming — 0.2% |
||||||||
AGCO Corp. |
16,260 | 990,559 | ||||||
Machinery - General Industrial — 0.6% |
||||||||
Applied Industrial Technologies, Inc. |
1,500 | 94,575 | ||||||
DXP Enterprises, Inc.† |
23,300 | 815,500 | ||||||
Kadant, Inc. |
34,300 | 2,123,170 | ||||||
3,033,245 | ||||||||
Machinery - Material Handling — 0.1% |
||||||||
Columbus McKinnon Corp. |
18,500 | 477,485 | ||||||
Medical Instruments — 0.3% |
||||||||
AngioDynamics, Inc.† |
16,800 | 274,680 | ||||||
Halyard Health, Inc.† |
38,900 | 1,519,434 | ||||||
1,794,114 | ||||||||
Medical Products — 0.1% |
||||||||
Surmodics, Inc.† |
15,400 | 381,150 | ||||||
Medical - Biomedical/Gene — 2.0% |
||||||||
Acorda Therapeutics, Inc.† |
19,000 | 502,550 | ||||||
Adverum Biotechnologies, Inc.† |
1,900 | 5,035 | ||||||
AMAG Pharmaceuticals, Inc.† |
91,500 | 2,054,175 | ||||||
Ardelyx, Inc.†# |
29,000 | 394,400 | ||||||
Celldex Therapeutics, Inc.†# |
34,300 | 121,422 | ||||||
Corvus Pharmaceuticals, Inc.†# |
11,700 | 168,246 | ||||||
Endocyte, Inc.†# |
58,400 | 119,720 | ||||||
Epizyme, Inc.†# |
1,700 | 24,140 | ||||||
Esperion Therapeutics, Inc.†# |
15,700 | 410,869 | ||||||
Exelixis, Inc.†# |
18,700 | 402,611 | ||||||
Five Prime Therapeutics, Inc.†# |
6,200 | 284,394 | ||||||
Idera Pharmaceuticals, Inc.†# |
225,000 | 420,750 | ||||||
Insmed, Inc.† |
5,800 | 92,394 | ||||||
Karyopharm Therapeutics, Inc.† |
20,700 | 214,659 | ||||||
Kite Pharma, Inc.†# |
2,100 | 148,617 | ||||||
Lexicon Pharmaceuticals, Inc.†# |
15,800 | 253,590 | ||||||
Loxo Oncology, Inc.† |
6,900 | 306,636 | ||||||
MacroGenics, Inc.†# |
2,000 | 42,280 | ||||||
Medicines Co.†# |
29,300 | 1,535,906 | ||||||
Merrimack Pharmaceuticals, Inc.†# |
19,200 | 58,944 | ||||||
Momenta Pharmaceuticals, Inc.† |
27,500 | 424,875 | ||||||
Pfenex, Inc.† |
9,900 | 71,577 | ||||||
PTC Therapeutics, Inc.† |
51,400 | 700,582 | ||||||
Retrophin, Inc.† |
20,900 | 444,543 | ||||||
Rigel Pharmaceuticals, Inc.†# |
174,400 | 427,280 | ||||||
Sage Therapeutics, Inc.†# |
4,700 | 316,780 | ||||||
Ultragenyx Pharmaceutical, Inc.† |
3,500 | 297,780 | ||||||
Versartis, Inc.†# |
39,500 | 863,075 | ||||||
11,107,830 | ||||||||
Medical - Drugs — 0.3% |
||||||||
ACADIA Pharmaceuticals, Inc.†# |
4,700 | 179,117 | ||||||
Chimerix, Inc.†# |
41,500 | 235,720 | ||||||
Enanta Pharmaceuticals, Inc.† |
11,300 | 325,666 | ||||||
Immune Design Corp.† |
3,300 | 16,830 | ||||||
Lannett Co., Inc.†# |
5,300 | 116,600 | ||||||
MyoKardia, Inc.†# |
14,000 | 170,100 | ||||||
NantKwest, Inc.†# |
10,200 | 48,246 |
76 |
VALIC Company II Small Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS (continued) |
| |||||||
Medical - Drugs (continued) |
||||||||
Radius Health, Inc.†# |
8,700 | $ | 366,618 | |||||
Vanda Pharmaceuticals, Inc.† |
8,900 | 126,825 | ||||||
1,585,722 | ||||||||
Medical - Generic Drugs — 0.1% |
||||||||
Amphastar Pharmaceuticals, Inc.† |
23,400 | 361,998 | ||||||
Impax Laboratories, Inc.† |
2,000 | 28,500 | ||||||
390,498 | ||||||||
Medical - HMO — 1.2% |
||||||||
Magellan Health, Inc.† |
3,000 | 207,450 | ||||||
Molina Healthcare, Inc.†# |
49,300 | 2,391,543 | ||||||
Tivity Health Inc.†# |
81,500 | 2,355,350 | ||||||
Triple-S Management Corp., Class B† |
47,300 | 883,091 | ||||||
WellCare Health Plans, Inc.† |
5,400 | 762,480 | ||||||
6,599,914 | ||||||||
Medical - Hospitals — 0.2% |
||||||||
Community Health Systems, Inc.†# |
109,300 | 1,065,675 | ||||||
Medical - Nursing Homes — 0.0% |
||||||||
Genesis Healthcare, Inc.†# |
15,100 | 48,622 | ||||||
Kindred Healthcare, Inc. |
18,900 | 170,100 | ||||||
218,722 | ||||||||
Medical - Outpatient/Home Medical — 0.1% |
||||||||
Addus HomeCare Corp.† |
18,000 | 579,600 | ||||||
Medical - Wholesale Drug Distribution — 0.6% |
||||||||
Owens & Minor, Inc. |
88,000 | 3,175,040 | ||||||
Metal Processors & Fabrication — 0.4% |
||||||||
Global Brass & Copper Holdings, Inc. |
68,500 | 2,305,025 | ||||||
Metal Products - Distribution — 0.4% |
||||||||
Olympic Steel, Inc. |
9,500 | 229,710 | ||||||
Worthington Industries, Inc. |
39,940 | 1,959,057 | ||||||
2,188,767 | ||||||||
Metal - Iron — 0.2% |
||||||||
Cliffs Natural Resources, Inc.†# |
81,900 | 873,054 | ||||||
Miscellaneous Manufacturing — 0.0% |
||||||||
FreightCar America, Inc. |
6,400 | 87,744 | ||||||
Motion Pictures & Services — 0.1% |
||||||||
Eros International PLC†# |
32,400 | 372,600 | ||||||
Networking Products — 0.3% |
||||||||
A10 Networks, Inc.† |
44,600 | 421,916 | ||||||
Black Box Corp. |
63,180 | 568,620 | ||||||
Extreme Networks, Inc.† |
141,100 | 881,875 | ||||||
1,872,411 | ||||||||
Office Furnishings - Original — 0.0% |
||||||||
Kimball International, Inc., Class B |
9,800 | 160,720 | ||||||
Office Supplies & Forms — 1.0% |
||||||||
ACCO Brands Corp.† |
409,600 | 5,488,640 | ||||||
Oil & Gas Drilling — 0.3% |
||||||||
Parker Drilling Co.† |
52,900 | 100,510 | ||||||
Seadrill, Ltd.†# |
839,800 | 1,469,650 | ||||||
1,570,160 | ||||||||
Oil Companies - Exploration & Production — 1.7% |
||||||||
Abraxas Petroleum Corp.† |
405,800 | 860,296 | ||||||
Bill Barrett Corp.† |
351,000 | 1,934,010 | ||||||
Clayton Williams Energy, Inc.† |
4,500 | 609,075 | ||||||
Denbury Resources, Inc.†# |
598,600 | 1,622,206 | ||||||
Eclipse Resources Corp.† |
111,000 | 239,760 | ||||||
EP Energy Corp., Class A†# |
381,128 | 1,798,924 |
Security Description | Shares | Value (Note 2) |
||||||
Oil Companies - Exploration & Production (continued) |
||||||||
Jones Energy, Inc., Class A†# |
35,800 | $ | 114,560 | |||||
Oasis Petroleum, Inc.† |
20,600 | 291,696 | ||||||
Sanchez Energy Corp.† |
66,800 | 768,200 | ||||||
Unit Corp.†# |
45,500 | 1,234,870 | ||||||
9,473,597 | ||||||||
Oil Field Machinery & Equipment — 0.2% |
||||||||
Exterran Corp.† |
37,200 | 1,132,368 | ||||||
Oil Refining & Marketing — 0.6% |
||||||||
Alon USA Energy, Inc.# |
15,700 | 190,912 | ||||||
Delek US Holdings, Inc. |
118,100 | 2,842,667 | ||||||
3,033,579 | ||||||||
Oil - Field Services — 1.4% |
||||||||
Archrock, Inc. |
49,500 | 675,675 | ||||||
McDermott International, Inc.† |
124,200 | 914,112 | ||||||
MRC Global, Inc.† |
188,700 | 3,813,627 | ||||||
NOW, Inc.† |
46,800 | 895,752 | ||||||
Pioneer Energy Services Corp.† |
141,863 | 744,781 | ||||||
SEACOR Holdings, Inc.†# |
12,800 | 881,280 | ||||||
7,925,227 | ||||||||
Paper & Related Products — 0.5% |
||||||||
Domtar Corp. |
16,940 | 645,245 | ||||||
P.H. Glatfelter Co.# |
9,500 | 209,950 | ||||||
Schweitzer-Mauduit International, Inc. |
46,700 | 1,916,101 | ||||||
2,771,296 | ||||||||
Pipelines — 0.2% |
||||||||
SemGroup Corp., Class A |
28,700 | 1,008,805 | ||||||
Pollution Control — 0.1% |
||||||||
CECO Environmental Corp. |
67,000 | 757,100 | ||||||
Power Converter/Supply Equipment — 0.2% |
||||||||
Advanced Energy Industries, Inc.†# |
11,800 | 732,780 | ||||||
Powell Industries, Inc. |
12,300 | 401,472 | ||||||
1,134,252 | ||||||||
Printing - Commercial — 0.8% |
||||||||
ARC Document Solutions, Inc.† |
144,193 | 579,656 | ||||||
Ennis, Inc. |
14,300 | 233,805 | ||||||
LSC Communications, Inc. |
1,200 | 34,104 | ||||||
Quad/Graphics, Inc. |
129,200 | 3,507,780 | ||||||
RR Donnelley & Sons Co. |
3,200 | 53,664 | ||||||
4,409,009 | ||||||||
Publishing - Books — 0.1% |
||||||||
Houghton Mifflin Harcourt Co.† |
23,700 | 261,885 | ||||||
Publishing - Newspapers — 0.1% |
||||||||
tronc, Inc.†# |
30,700 | 448,220 | ||||||
Racetracks — 0.0% |
||||||||
Speedway Motorsports, Inc. |
9,900 | 211,068 | ||||||
Radio — 0.1% |
||||||||
Entercom Communications Corp., Class A# |
38,440 | 601,586 | ||||||
Radio One, Inc., Class D†# |
43,900 | 120,725 | ||||||
722,311 | ||||||||
Real Estate Investment Trusts — 10.6% |
||||||||
AG Mtg. Investment Trust, Inc. |
21,500 | 383,990 | ||||||
Agree Realty Corp. |
1,200 | 59,556 | ||||||
American Assets Trust, Inc. |
8,600 | 378,400 | ||||||
American Campus Communities, Inc. |
14,800 | 756,280 | ||||||
Apartment Investment & Management Co., Class A# |
33,679 | 1,567,084 | ||||||
Armada Hoffler Properties, Inc.# |
7,500 | 104,625 |
77 |
VALIC Company II Small Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS (continued) |
| |||||||
Real Estate Investment Trusts (continued) |
||||||||
ARMOUR Residential REIT, Inc.# |
8,809 | $ | 198,115 | |||||
Ashford Hospitality Prime, Inc. |
800 | 10,440 | ||||||
Ashford Hospitality Trust, Inc. |
358,080 | 2,352,586 | ||||||
Bluerock Residential Growth REIT, Inc. |
11,500 | 143,520 | ||||||
Capstead Mtg. Corp. |
322,100 | 3,407,818 | ||||||
CBL & Associates Properties, Inc.# |
61,840 | 620,255 | ||||||
Cedar Realty Trust, Inc. |
66,300 | 389,181 | ||||||
Chatham Lodging Trust |
10,200 | 204,306 | ||||||
Chesapeake Lodging Trust |
16,500 | 398,640 | ||||||
CoreSite Realty Corp. |
25,800 | 2,323,806 | ||||||
Cousins Properties, Inc. |
120,860 | 1,033,353 | ||||||
CyrusOne, Inc. |
3,000 | 152,700 | ||||||
CYS Investments, Inc. |
343,800 | 2,757,276 | ||||||
DCT Industrial Trust, Inc. |
85,160 | 4,074,054 | ||||||
DiamondRock Hospitality Co. |
184,234 | 2,002,624 | ||||||
DuPont Fabros Technology, Inc. |
11,900 | 612,731 | ||||||
EastGroup Properties, Inc. |
1,700 | 126,378 | ||||||
Education Realty Trust, Inc.# |
10,500 | 442,575 | ||||||
EPR Properties |
11,300 | 869,648 | ||||||
FelCor Lodging Trust, Inc. |
133,600 | 968,600 | ||||||
First Industrial Realty Trust, Inc. |
61,718 | 1,660,214 | ||||||
First Potomac Realty Trust |
83,500 | 834,165 | ||||||
Franklin Street Properties Corp. |
12,500 | 154,875 | ||||||
GEO Group, Inc.# |
22,300 | 1,061,703 | ||||||
Getty Realty Corp. |
24,946 | 658,325 | ||||||
Gladstone Commercial Corp.# |
12,500 | 260,125 | ||||||
Government Properties Income Trust# |
81,800 | 1,685,898 | ||||||
Highwoods Properties, Inc. |
17,400 | 913,326 | ||||||
Hospitality Properties Trust |
27,240 | 865,687 | ||||||
Hudson Pacific Properties, Inc. |
8,100 | 296,298 | ||||||
InfraREIT, Inc. |
50,400 | 839,160 | ||||||
Kite Realty Group Trust |
47,600 | 1,078,140 | ||||||
LaSalle Hotel Properties |
13,578 | 392,404 | ||||||
LTC Properties, Inc. |
18,220 | 878,933 | ||||||
Mack-Cali Realty Corp. |
21,700 | 632,555 | ||||||
Mid-America Apartment Communities, Inc. |
2,477 | 254,462 | ||||||
Monogram Residential Trust, Inc. |
39,900 | 410,571 | ||||||
National Storage Affiliates Trust |
13,100 | 317,282 | ||||||
New Senior Investment Group, Inc. |
33,600 | 356,160 | ||||||
NexPoint Residential Trust, Inc. |
10,980 | 261,873 | ||||||
Orchid Island Capital, Inc.# |
4,400 | 43,208 | ||||||
Parkway, Inc.† |
15,470 | 324,561 | ||||||
Pebblebrook Hotel Trust# |
22,000 | 632,500 | ||||||
Pennsylvania Real Estate Investment Trust |
51,280 | 846,120 | ||||||
Potlatch Corp. |
31,400 | 1,389,450 | ||||||
PS Business Parks, Inc. |
14,400 | 1,673,424 | ||||||
QTS Realty Trust, Inc., Class A |
4,600 | 241,960 | ||||||
RAIT Financial Trust |
271,300 | 911,568 | ||||||
Ramco-Gershenson Properties Trust |
10,600 | 165,996 | ||||||
Redwood Trust, Inc. |
84,700 | 1,386,539 | ||||||
Retail Opportunity Investments Corp. |
77,400 | 1,702,800 | ||||||
Rexford Industrial Realty, Inc. |
23,400 | 537,732 | ||||||
RLJ Lodging Trust |
71,400 | 1,625,064 | ||||||
Saul Centers, Inc. |
2,000 | 128,080 | ||||||
Silver Bay Realty Trust Corp. |
36,500 | 785,845 | ||||||
Summit Hotel Properties, Inc. |
87,400 | 1,345,086 | ||||||
Sun Communities, Inc. |
5,500 | 455,565 | ||||||
Sunstone Hotel Investors, Inc. |
144,872 | 2,136,862 | ||||||
Taubman Centers, Inc. |
2,300 | 160,448 | ||||||
Urstadt Biddle Properties, Inc., Class A |
13,300 | 296,324 | ||||||
Washington Prime Group, Inc. |
1,053 | 9,761 | ||||||
Washington Real Estate Investment Trust |
1,600 | 52,336 | ||||||
Xenia Hotels & Resorts, Inc. |
77,700 | 1,365,189 | ||||||
58,367,115 | ||||||||
Security Description | Shares | Value (Note 2) |
||||||
Real Estate Operations & Development — 0.5% |
||||||||
Alexander & Baldwin, Inc. |
23,600 | $ | 1,057,988 | |||||
Forestar Group, Inc.† |
77,600 | 1,032,080 | ||||||
St. Joe Co.† |
55,800 | 923,490 | ||||||
3,013,558 | ||||||||
Rental Auto/Equipment — 0.6% |
||||||||
Aaron’s, Inc. |
43,300 | 1,181,224 | ||||||
AMERCO# |
800 | 309,040 | ||||||
Rent-A-Center, Inc.# |
192,100 | 1,665,507 | ||||||
3,155,771 | ||||||||
Retail - Apparel/Shoe — 1.5% |
||||||||
Abercrombie & Fitch Co., Class A# |
138,100 | 1,651,676 | ||||||
Caleres, Inc. |
19,600 | 585,452 | ||||||
Children’s Place, Inc.# |
44,450 | 4,502,785 | ||||||
Tailored Brands, Inc.# |
53,900 | 1,245,629 | ||||||
Tilly’s, Inc., Class A |
21,300 | 234,939 | ||||||
8,220,481 | ||||||||
Retail - Hair Salons — 0.2% |
||||||||
Regis Corp.† |
92,200 | 1,134,982 | ||||||
Retail - Home Furnishings — 0.2% |
||||||||
Pier 1 Imports, Inc. |
181,800 | 1,223,514 | ||||||
Retail - Jewelry — 0.2% |
||||||||
Movado Group, Inc.# |
45,600 | 1,105,800 | ||||||
Retail - Misc./Diversified — 0.3% |
||||||||
FirstCash, Inc. |
36,300 | 1,609,905 | ||||||
Retail - Office Supplies — 0.4% |
||||||||
Office Depot, Inc. |
576,300 | 2,403,171 | ||||||
Retail - Pawn Shops — 0.2% |
||||||||
EZCORP, Inc., Class A† |
125,600 | 1,105,280 | ||||||
Retail - Petroleum Products — 0.0% |
||||||||
World Fuel Services Corp. |
3,900 | 141,063 | ||||||
Retail - Regional Department Stores — 0.1% |
||||||||
Dillard’s, Inc., Class A# |
11,440 | 623,709 | ||||||
Retail - Restaurants — 0.3% |
||||||||
Bob Evans Farms, Inc.# |
12,600 | 714,798 | ||||||
Ruby Tuesday, Inc.† |
10,900 | 20,710 | ||||||
Ruth’s Hospitality Group, Inc. |
46,672 | 786,423 | ||||||
1,521,931 | ||||||||
Rubber - Tires — 0.8% |
||||||||
Cooper Tire & Rubber Co.# |
114,100 | 4,615,345 | ||||||
Rubber/Plastic Products — 0.4% |
||||||||
Myers Industries, Inc. |
9,358 | 131,480 | ||||||
Trinseo SA |
27,000 | 1,867,050 | ||||||
1,998,530 | ||||||||
Satellite Telecom — 0.6% |
||||||||
DigitalGlobe, Inc.† |
103,600 | 3,278,940 | ||||||
Intelsat SA†# |
35,900 | 178,782 | ||||||
3,457,722 | ||||||||
Savings & Loans/Thrifts — 3.1% |
||||||||
BankFinancial Corp. |
4,100 | 60,967 | ||||||
Beneficial Bancorp, Inc. |
177,858 | 2,899,086 | ||||||
Berkshire Hills Bancorp, Inc. |
3,800 | 134,330 | ||||||
Brookline Bancorp, Inc. |
12,900 | 204,465 | ||||||
Charter Financial Corp. |
58,900 | 1,151,495 | ||||||
Dime Community Bancshares, Inc. |
25,700 | 552,550 | ||||||
First Defiance Financial Corp. |
11,200 | 550,480 | ||||||
Flagstar Bancorp, Inc.† |
15,300 | 434,520 |
78 |
VALIC Company II Small Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS (continued) |
| |||||||
Savings & Loans/Thrifts (continued) |
||||||||
Flushing Financial Corp. |
32,500 | $ | 908,050 | |||||
HomeStreet, Inc.† |
11,400 | 311,220 | ||||||
HomeTrust Bancshares, Inc.† |
5,400 | 129,600 | ||||||
Investors Bancorp, Inc.# |
166,900 | 2,441,747 | ||||||
Meridian Bancorp, Inc. |
56,300 | 1,072,515 | ||||||
Meta Financial Group, Inc.# |
11,400 | 975,840 | ||||||
Northfield Bancorp, Inc. |
101,100 | 1,896,636 | ||||||
Oritani Financial Corp. |
4,700 | 80,840 | ||||||
Provident Financial Holdings, Inc. |
3,100 | 57,846 | ||||||
Provident Financial Services, Inc. |
9,000 | 238,950 | ||||||
Sterling Bancorp# |
52,700 | 1,304,325 | ||||||
Territorial Bancorp, Inc. |
2,700 | 86,994 | ||||||
United Community Financial Corp. |
13,700 | 117,957 | ||||||
United Financial Bancorp, Inc. |
16,600 | 296,476 | ||||||
Waterstone Financial, Inc. |
15,200 | 281,960 | ||||||
WSFS Financial Corp. |
14,874 | 678,254 | ||||||
16,867,103 | ||||||||
Schools — 0.3% |
||||||||
American Public Education, Inc.† |
11,700 | 282,555 | ||||||
Career Education Corp.† |
10,900 | 90,797 | ||||||
DeVry Education Group, Inc.# |
4,900 | 157,535 | ||||||
K12, Inc.† |
76,600 | 1,368,076 | ||||||
1,898,963 | ||||||||
Security Services — 0.1% |
||||||||
Ascent Capital Group, Inc., Class A† |
47,000 | 754,350 | ||||||
Seismic Data Collection — 0.0% |
||||||||
Geospace Technologies Corp.†# |
5,700 | 94,107 | ||||||
Semiconductor Components - Integrated Circuits — 0.3% |
||||||||
Cypress Semiconductor Corp.# |
142,822 | 1,895,248 | ||||||
Semiconductor Equipment — 0.6% |
||||||||
Ultra Clean Holdings, Inc.† |
103,600 | 1,434,860 | ||||||
Xcerra Corp.† |
183,955 | 1,607,767 | ||||||
3,042,627 | ||||||||
Steel Pipe & Tube — 0.0% |
||||||||
TimkenSteel Corp.† |
2,500 | 52,300 | ||||||
Steel - Producers — 1.0% |
||||||||
AK Steel Holding Corp.†# |
333,600 | 2,778,888 | ||||||
Carpenter Technology Corp.# |
42,700 | 1,731,912 | ||||||
Commercial Metals Co.# |
7,200 | 152,136 | ||||||
Ryerson Holding Corp.† |
6,100 | 66,185 | ||||||
Schnitzer Steel Industries, Inc., Class A |
40,000 | 952,000 | ||||||
5,681,121 | ||||||||
Telecom Equipment - Fiber Optics — 0.1% |
||||||||
Oclaro, Inc.† |
31,000 | 263,500 | ||||||
Telecom Services — 0.6% |
||||||||
HC2 Holdings, Inc.† |
113,000 | 621,500 | ||||||
West Corp. |
107,300 | 2,565,543 | ||||||
3,187,043 | ||||||||
Telephone - Integrated — 0.4% |
||||||||
IDT Corp., Class B |
25,700 | 496,010 | ||||||
Windstream Holdings, Inc.# |
257,290 | 1,921,959 | ||||||
2,417,969 | ||||||||
Television — 0.2% |
||||||||
Central European Media Enterprises, Ltd., Class A†# |
23,200 | 66,120 | ||||||
Sinclair Broadcast Group, Inc., Class A# |
24,400 | 973,560 | ||||||
1,039,680 | ||||||||
Textile - Apparel — 0.1% |
||||||||
Perry Ellis International, Inc.† |
13,400 | 312,086 | ||||||
Security Description | Shares | Value (Note 2) |
||||||
Therapeutics — 0.1% |
||||||||
Cara Therapeutics, Inc.†# |
9,200 | $ | 147,476 | |||||
Seres Therapeutics, Inc.†# |
10,100 | 97,768 | ||||||
Voyager Therapeutics, Inc.†# |
8,400 | 108,780 | ||||||
Zafgen, Inc.† |
3,100 | 12,307 | ||||||
366,331 | ||||||||
Tobacco — 0.5% |
||||||||
Alliance One International, Inc.† |
7,800 | 111,930 | ||||||
Universal Corp.# |
42,100 | 2,850,170 | ||||||
2,962,100 | ||||||||
Toys — 0.1% |
||||||||
JAKKS Pacific, Inc.†# |
84,200 | 442,050 | ||||||
Transport - Air Freight — 0.3% |
||||||||
Atlas Air Worldwide Holdings, Inc.†# |
30,800 | 1,750,980 | ||||||
Transport - Equipment & Leasing — 0.1% |
||||||||
Greenbrier Cos., Inc.# |
12,600 | 529,830 | ||||||
Transport - Services — 0.1% |
||||||||
Matson, Inc. |
22,400 | 760,032 | ||||||
Transport - Truck — 1.3% |
||||||||
ArcBest Corp. |
134,420 | 3,945,227 | ||||||
Roadrunner Transportation Systems, Inc.† |
47,700 | 359,658 | ||||||
USA Truck, Inc.† |
52,300 | 497,373 | ||||||
YRC Worldwide, Inc.†# |
163,600 | 2,100,624 | ||||||
6,902,882 | ||||||||
Travel Services — 0.1% |
||||||||
Liberty TripAdvisor Holdings, Inc., Class A† |
51,800 | 696,710 | ||||||
Water — 0.5% |
||||||||
American States Water Co. |
27,600 | 1,234,272 | ||||||
Artesian Resources Corp., Class A |
2,200 | 72,490 | ||||||
California Water Service Group# |
27,160 | 998,130 | ||||||
Consolidated Water Co., Ltd. |
18,700 | 193,545 | ||||||
2,498,437 | ||||||||
Wire & Cable Products — 0.4% |
||||||||
General Cable Corp.# |
146,600 | 2,448,220 | ||||||
Wireless Equipment — 0.2% |
||||||||
InterDigital, Inc. |
11,500 | 966,576 | ||||||
Total Common Stocks |
||||||||
(cost $438,235,232) |
537,670,341 | |||||||
WARRANTS — 0.0% |
||||||||
Finance other services — 0.0% |
||||||||
Emergent Capital, Inc. Expires 10/01/2019 (strike price $10.75)† |
994 | 0 | ||||||
Total Long-Term Investment Securities |
||||||||
(cost $438,235,232) |
537,670,341 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 4.8% |
||||||||
Registered Investment Companies — 4.8% |
||||||||
State Street Navigator Securities Lending Government Money Market Portfolio |
||||||||
(cost $26,492,313) |
26,492,313 | 26,492,313 | ||||||
79 |
VALIC Company II Small Cap Value Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount |
Value (Note 2) |
||||||
REPURCHASE AGREEMENTS — 2.6% |
||||||||
Agreement with Fixed Income Clearing Corp., bearing interest at 0.03%, dated 02/28/2017, to be repurchased 03/01/2017 in the amount of $14,450,012 collateralized by $12,755,000 of United States Treasury Notes, bearing interest at 3.8% due 11/15/2043 and having an approximate value of $14,744,002 |
||||||||
(cost $14,450,000) |
$ | 14,450,000 | $ | 14,450,000 | ||||
TOTAL INVESTMENTS |
||||||||
(cost $479,177,545)(2) |
104.9 | % | 578,612,654 | |||||
Liabilities in excess of other assets |
(4.9 | ) | (27,134,225 | ) | ||||
NET ASSETS |
100.0 | % | $ | 551,478,429 | ||||
† | Non-income producing security |
# | The security or a portion thereof is out on loan (see Note 2). |
(1) | At February 28, 2017, the Fund had loaned securities with a total value of $83,527,843. This was secured by collateral of $26,492,313, which was received in cash and subsequently invested in short-term investments currently value at $26,492,313 as reported in the Portfolio of Investments. Additional collateral of $60,820,292 was received in the form of short-term pooled securities, which the Fund cannot sell or repledge and accordingly is not reflected in the Fund’s assets and liabilities. |
The components of the fixed income pooled secutities referenced above are as follows:
Securities |
Coupon Range |
Maturity Date Range |
Value as of February 28, 2017 |
|||||
Federal Home Loan Mtg. Corp. |
2.50% to 4.50% | 11/01/2027 to 09/01/2044 | $ | 1,414,530 | ||||
Federal National Mtg. Assoc. |
2.00% to 4.25% | 01/01/2032 to 02/25/2044 | 2,466,093 | |||||
Government National Mtg. Assoc. |
2.50% to 3.50% | 11/20/2027 to 11/20/2046 | 5,674,660 | |||||
United States Treasury Bills |
0.00% | 03/02/2017 to 12/07/2017 | 11,025,837 | |||||
United States Treasury Notes/Bonds |
zero coupon to 8.75% | 04/15/2017 to 11/15/2046 | 40,239,172 |
(2) | See Note 5 for cost of investments on a tax basis. |
(3) | The rate shown is a 7-day yield as of February 28, 2017. |
Futures Contracts | ||||||||||||||||||||||
Number of Contracts |
Type | Description | Expiration Month |
Value at Trade Date |
Value as of February 28, 2017 |
Unrealized Appreciation |
||||||||||||||||
183 | Long | Russell 2000 E-Mini Index |
March 2017 | $ | 12,625,189 | $ | 12,672,750 | $ | 47,561 | |||||||||||||
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level
2 - Other Observable Inputs |
Level 3 -
Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Common Stocks |
$ | 537,670,341 | $ | — | $ | — | $ | 537,670,341 | ||||||||
Warrants |
— | 0 | — | 0 | ||||||||||||
Short-Term Investment Securities |
26,492,313 | — | — | 26,492,313 | ||||||||||||
Repurchase Agreements |
— | 14,450,000 | — | 14,450,000 | ||||||||||||
Total Investments at Value |
$ | 564,162,654 | $ | 14,450,000 | $ | — | $ | 578,612,654 | ||||||||
Other Financial Instruments:+ |
||||||||||||||||
Futures Contracts |
$ | 47,561 | $ | — | $ | — | $ | 47,561 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
+ | Other financial instruments are derivative instruments, not reflected in the Portfolio of Investments, such as futures, forward, swap and written option contracts, which are valued at the unrealized appreciation (depreciation) on the instrument. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
See Notes to Financial Statements
80 |
VALIC Company II Socially Responsible Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Real Estate Investment Trusts |
5.3 | % | ||
Banks — Super Regional |
4.8 | |||
Medical — Biomedical/Gene |
3.9 | |||
Applications Software |
3.6 | |||
Web Portals/ISP |
3.4 | |||
Cosmetics & Toiletries |
3.2 | |||
Electronic Components — Semiconductors |
3.2 | |||
Finance — Credit Card |
3.2 | |||
U.S. Government Treasuries |
2.9 | |||
Oil Companies — Exploration & Production |
2.7 | |||
Beverages — Non-alcoholic |
2.7 | |||
Diagnostic Equipment |
2.4 | |||
Computer Services |
2.4 | |||
Insurance — Reinsurance |
2.3 | |||
Internet Content — Entertainment |
2.0 | |||
Insurance — Multi-line |
1.9 | |||
Multimedia |
1.8 | |||
Medical — HMO |
1.7 | |||
Medical — Drugs |
1.6 | |||
Banks — Commercial |
1.6 | |||
Medical Products |
1.5 | |||
Cable/Satellite TV |
1.4 | |||
Enterprise Software/Service |
1.3 | |||
Transport — Rail |
1.3 | |||
Insurance — Life/Health |
1.3 | |||
Networking Products |
1.3 | |||
Food — Misc./Diversified |
1.3 | |||
Commercial Services — Finance |
1.2 | |||
Retail — Restaurants |
1.2 | |||
Diversified Manufacturing Operations |
1.2 | |||
Oil — Field Services |
1.2 | |||
Electric — Integrated |
1.1 | |||
Pipelines |
1.0 | |||
Semiconductor Components — Integrated Circuits |
1.0 | |||
Investment Management/Advisor Services |
1.0 | |||
Transport — Services |
0.9 | |||
Retail — Major Department Stores |
0.8 | |||
Registered Investment Companies |
0.8 | |||
Medical — Wholesale Drug Distribution |
0.8 | |||
Commercial Services |
0.7 | |||
Electric — Distribution |
0.6 | |||
Retail — Drug Store |
0.6 | |||
Machinery — Construction & Mining |
0.6 | |||
Airlines |
0.6 | |||
Finance — Other Services |
0.6 | |||
Retail — Apparel/Shoe |
0.6 | |||
Retail — Building Products |
0.6 | |||
Consumer Products — Misc. |
0.5 | |||
E-Commerce/Services |
0.5 | |||
Auto — Cars/Light Trucks |
0.5 | |||
Data Processing/Management |
0.5 | |||
Semiconductor Equipment |
0.5 | |||
Electric Products — Misc. |
0.5 | |||
Gas — Distribution |
0.5 | |||
Electronic Forms |
0.5 | |||
Apparel Manufacturers |
0.5 | |||
Industrial Gases |
0.4 | |||
Repurchase Agreements |
0.4 | |||
Machinery — Farming |
0.4 | |||
Food — Retail |
0.4 | |||
Building Products — Air & Heating |
0.4 | |||
Hotels/Motels |
0.4 | |||
Telephone — Integrated |
0.4 | |||
Pharmacy Services |
0.4 | |||
Retail — Discount |
0.4 | |||
Electronic Components — Misc. |
0.4 | |||
Electronic Measurement Instruments |
0.3 | |||
Banks — Fiduciary |
0.3 | |||
Non-Hazardous Waste Disposal |
0.3 |
Finance — Investment Banker/Broker |
0.3 | |||
Insurance — Property/Casualty |
0.3 | |||
Oil Refining & Marketing |
0.3 | |||
Home Decoration Products |
0.3 | |||
Chemicals — Diversified |
0.3 | |||
Diversified Operations |
0.3 | |||
Paper & Related Products |
0.3 | |||
Computers — Memory Devices |
0.3 | |||
Insurance Brokers |
0.3 | |||
Oil Field Machinery & Equipment |
0.3 | |||
Auto — Heavy Duty Trucks |
0.2 | |||
Computers |
0.2 | |||
Medical — Generic Drugs |
0.2 | |||
Vitamins & Nutrition Products |
0.2 | |||
Entertainment Software |
0.2 | |||
Medical — Hospitals |
0.2 | |||
Industrial Automated/Robotic |
0.2 | |||
Retail — Regional Department Stores |
0.2 | |||
Advertising Agencies |
0.2 | |||
Dental Supplies & Equipment |
0.2 | |||
Medical Labs & Testing Services |
0.2 | |||
Engines — Internal Combustion |
0.2 | |||
E-Commerce/Products |
0.2 | |||
Finance — Consumer Loans |
0.2 | |||
Medical Instruments |
0.2 | |||
Retail — Auto Parts |
0.2 | |||
Television |
0.2 | |||
Building Products — Cement |
0.2 | |||
Agricultural Chemicals |
0.2 | |||
Tools — Hand Held |
0.2 | |||
Textile — Home Furnishings |
0.1 | |||
Auto/Truck Parts & Equipment — Original |
0.1 | |||
Steel — Producers |
0.1 | |||
Oil Companies — Integrated |
0.1 | |||
Medical Information Systems |
0.1 | |||
Containers — Paper/Plastic |
0.1 | |||
Aerospace/Defense |
0.1 | |||
Appliances |
0.1 | |||
Distribution/Wholesale |
0.1 | |||
Water |
0.1 | |||
Retail — Perfume & Cosmetics |
0.1 | |||
Electronic Connectors |
0.1 | |||
Food — Confectionery |
0.1 | |||
Telecom Services |
0.1 | |||
Cruise Lines |
0.1 | |||
Office Automation & Equipment |
0.1 | |||
Wireless Equipment |
0.1 | |||
Computer Aided Design |
0.1 | |||
Building Products — Wood |
0.1 | |||
101.4 | % | |||
* | Calculated as a percentage of net assets |
81 |
VALIC Company II Socially Responsible Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS — 97.3% |
||||||||
Advertising Agencies — 0.2% |
||||||||
Omnicom Group, Inc.# |
19,110 | $ | 1,626,261 | |||||
Aerospace/Defense — 0.1% |
||||||||
TransDigm Group, Inc.# |
3,484 | 885,633 | ||||||
Agricultural Chemicals — 0.2% |
||||||||
CF Industries Holdings, Inc.# |
17,081 | 536,685 | ||||||
Mosaic Co.# |
24,573 | 766,432 | ||||||
1,303,117 | ||||||||
Airlines — 0.6% |
||||||||
American Airlines Group, Inc.# |
23,983 | 1,111,852 | ||||||
Delta Air Lines, Inc. |
28,016 | 1,398,839 | ||||||
Southwest Airlines Co. |
30,771 | 1,778,563 | ||||||
United Continental Holdings, Inc.†# |
7,821 | 579,458 | ||||||
4,868,712 | ||||||||
Apparel Manufacturers — 0.5% |
||||||||
Hanesbrands, Inc.# |
41,403 | 828,474 | ||||||
Michael Kors Holdings, Ltd.†# |
4,294 | 156,731 | ||||||
Under Armour, Inc., Class C†# |
20,491 | 380,313 | ||||||
VF Corp.# |
43,935 | 2,304,391 | ||||||
3,669,909 | ||||||||
Appliances — 0.1% |
||||||||
Whirlpool Corp. |
4,351 | 777,045 | ||||||
Applications Software — 3.6% |
||||||||
Citrix Systems, Inc.† |
3,558 | 280,904 | ||||||
Intuit, Inc. |
12,501 | 1,568,126 | ||||||
Microsoft Corp. |
382,582 | 24,477,596 | ||||||
Red Hat, Inc.† |
1,310 | 108,481 | ||||||
salesforce.com, Inc.†# |
30,739 | 2,500,618 | ||||||
28,935,725 | ||||||||
Auto - Cars/Light Trucks — 0.5% |
||||||||
Ford Motor Co. |
341,193 | 4,275,148 | ||||||
Auto - Heavy Duty Trucks — 0.2% |
||||||||
PACCAR, Inc. |
29,524 | 1,972,498 | ||||||
Auto/Truck Parts & Equipment-Original — 0.1% |
||||||||
Delphi Automotive PLC |
15,439 | 1,175,371 | ||||||
Banks - Commercial — 1.6% |
||||||||
BB&T Corp.# |
137,108 | 6,611,348 | ||||||
M&T Bank Corp.# |
30,038 | 5,015,445 | ||||||
Regions Financial Corp. |
74,610 | 1,139,294 | ||||||
12,766,087 | ||||||||
Banks - Fiduciary — 0.3% |
||||||||
Citizens Financial Group, Inc. |
28,688 | 1,072,071 | ||||||
Northern Trust Corp. |
18,835 | 1,645,237 | ||||||
2,717,308 | ||||||||
Banks - Super Regional — 4.8% |
||||||||
Capital One Financial Corp. |
61,326 | 5,756,059 | ||||||
Comerica, Inc. |
14,387 | 1,025,505 | ||||||
Fifth Third Bancorp |
155,600 | 4,269,664 | ||||||
Huntington Bancshares, Inc. |
42,795 | 605,121 | ||||||
KeyCorp# |
51,718 | 970,747 | ||||||
PNC Financial Services Group, Inc. |
78,821 | 10,028,396 | ||||||
SunTrust Banks, Inc. |
46,114 | 2,743,322 | ||||||
US Bancorp |
241,162 | 13,263,910 | ||||||
38,662,724 | ||||||||
Beverages - Non-alcoholic — 2.7% |
||||||||
Dr Pepper Snapple Group, Inc. |
15,893 | 1,485,042 | ||||||
Monster Beverage Corp.† |
16,188 | 670,831 |
Security Description | Shares | Value (Note 2) |
||||||
Beverages - Non-alcoholic (continued) |
||||||||
PepsiCo, Inc. |
174,856 | $ | 19,300,605 | |||||
21,456,478 | ||||||||
Building Products - Air & Heating — 0.4% |
||||||||
Johnson Controls International PLC |
76,651 | 3,214,743 | ||||||
Building Products - Cement — 0.2% |
||||||||
Martin Marietta Materials, Inc. |
1,296 | 279,871 | ||||||
Vulcan Materials Co. |
8,500 | 1,025,185 | ||||||
1,305,056 | ||||||||
Building Products - Wood — 0.1% |
||||||||
Masco Corp. |
12,078 | 407,995 | ||||||
Cable/Satellite TV — 1.4% |
||||||||
Comcast Corp., Class A |
297,426 | 11,129,681 | ||||||
Chemicals - Diversified — 0.3% |
||||||||
Eastman Chemical Co. |
19,559 | 1,569,610 | ||||||
LyondellBasell Industries NV, Class A |
7,556 | 689,409 | ||||||
2,259,019 | ||||||||
Chemicals - Specialty — 0.0% |
||||||||
International Flavors & Fragrances, Inc.# |
451 | 56,691 | ||||||
Commercial Services — 0.7% |
||||||||
Cintas Corp.# |
7,876 | 929,447 | ||||||
Ecolab, Inc. |
29,042 | 3,600,336 | ||||||
Nielsen Holdings PLC |
22,844 | 1,013,360 | ||||||
5,543,143 | ||||||||
Commercial Services - Finance — 1.2% |
||||||||
Automatic Data Processing, Inc.# |
44,099 | 4,525,439 | ||||||
H&R Block, Inc.# |
2,355 | 48,419 | ||||||
PayPal Holdings, Inc.† |
77,368 | 3,249,456 | ||||||
S&P Global, Inc. |
17,393 | 2,251,872 | ||||||
10,075,186 | ||||||||
Computer Aided Design — 0.1% |
||||||||
Autodesk, Inc.†# |
4,946 | 426,840 | ||||||
Computer Services — 2.4% |
||||||||
Accenture PLC, Class A# |
39,908 | 4,888,730 | ||||||
Cognizant Technology Solutions Corp., Class A† |
24,122 | 1,429,711 | ||||||
Hewlett Packard Enterprise Co. |
80,682 | 1,841,163 | ||||||
International Business Machines Corp.# |
63,003 | 11,329,200 | ||||||
19,488,804 | ||||||||
Computers — 0.2% |
||||||||
HP, Inc. |
106,712 | 1,853,587 | ||||||
Computers - Memory Devices — 0.3% |
||||||||
NetApp, Inc. |
7,026 | 293,897 | ||||||
Seagate Technology PLC# |
19,573 | 943,223 | ||||||
Western Digital Corp. |
11,717 | 900,803 | ||||||
2,137,923 | ||||||||
Consumer Products - Misc. — 0.5% |
||||||||
Kimberly-Clark Corp. |
33,770 | 4,476,213 | ||||||
Containers - Paper/Plastic — 0.1% |
||||||||
Sealed Air Corp. |
7,872 | 365,891 | ||||||
WestRock Co. |
9,939 | 533,923 | ||||||
899,814 | ||||||||
Cosmetics & Toiletries — 3.2% |
||||||||
Colgate-Palmolive Co. |
108,412 | 7,911,908 | ||||||
Procter & Gamble Co. |
201,049 | 18,309,532 | ||||||
26,221,440 | ||||||||
82 |
VALIC Company II Socially Responsible Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS (continued) |
||||||||
Cruise Lines — 0.1% |
||||||||
Royal Caribbean Cruises, Ltd. |
5,489 | $ | 527,493 | |||||
Data Processing/Management — 0.5% |
||||||||
Fidelity National Information Services, Inc. |
22,615 | 1,860,536 | ||||||
Fiserv, Inc.† |
16,641 | 1,920,372 | ||||||
Paychex, Inc.# |
4,220 | 259,192 | ||||||
4,040,100 | ||||||||
Dental Supplies & Equipment — 0.2% |
||||||||
DENTSPLY SIRONA, Inc. |
25,202 | 1,600,831 | ||||||
Diagnostic Equipment — 2.4% |
||||||||
Abbott Laboratories |
184,383 | 8,311,986 | ||||||
Danaher Corp. |
75,896 | 6,492,903 | ||||||
Thermo Fisher Scientific, Inc. |
29,715 | 4,685,461 | ||||||
19,490,350 | ||||||||
Distribution/Wholesale — 0.1% |
||||||||
Fastenal Co.# |
15,084 | 754,652 | ||||||
Diversified Manufacturing Operations — 1.2% |
||||||||
Eaton Corp. PLC |
41,717 | 3,002,790 | ||||||
Illinois Tool Works, Inc. |
34,689 | 4,579,295 | ||||||
Parker-Hannifin Corp. |
7,312 | 1,132,190 | ||||||
Pentair PLC# |
14,110 | 819,226 | ||||||
9,533,501 | ||||||||
Diversified Operations — 0.3% |
||||||||
Leucadia National Corp.# |
83,380 | 2,219,576 | ||||||
E-Commerce/Products — 0.2% |
||||||||
eBay, Inc.† |
44,453 | 1,506,957 | ||||||
E-Commerce/Services — 0.5% |
||||||||
Expedia, Inc.# |
2,780 | 330,931 | ||||||
Priceline Group, Inc.†# |
2,304 | 3,972,396 | ||||||
4,303,327 | ||||||||
Electric Products - Misc. — 0.5% |
||||||||
Emerson Electric Co. |
64,491 | 3,875,909 | ||||||
Electric - Distribution — 0.6% |
||||||||
PPL Corp. |
138,095 | 5,092,944 | ||||||
Electric - Integrated — 1.1% |
||||||||
CMS Energy Corp. |
58,662 | 2,611,632 | ||||||
Eversource Energy# |
62,210 | 3,649,239 | ||||||
WEC Energy Group, Inc. |
45,949 | 2,769,346 | ||||||
9,030,217 | ||||||||
Electronic Components - Misc. — 0.4% |
||||||||
Corning, Inc. |
75,556 | 2,086,101 | ||||||
Garmin, Ltd. |
15,409 | 795,259 | ||||||
2,881,360 | ||||||||
Electronic Components - Semiconductors — 3.2% |
||||||||
Broadcom, Ltd. |
19,562 | 4,126,213 | ||||||
Intel Corp. |
298,411 | 10,802,478 | ||||||
Microchip Technology, Inc.# |
7,483 | 542,667 | ||||||
Micron Technology, Inc.†# |
39,222 | 919,364 | ||||||
NVIDIA Corp. |
23,771 | 2,412,281 | ||||||
Qorvo, Inc.†# |
3,633 | 240,141 | ||||||
Skyworks Solutions, Inc.# |
4,213 | 399,434 | ||||||
Texas Instruments, Inc. |
86,464 | 6,624,872 | ||||||
26,067,450 | ||||||||
Electronic Connectors — 0.1% |
||||||||
TE Connectivity, Ltd. |
9,019 | 671,645 | ||||||
Electronic Forms — 0.5% |
||||||||
Adobe Systems, Inc.† |
31,442 | 3,720,846 | ||||||
Security Description | Shares | Value (Note 2) |
||||||
Electronic Measurement Instruments — 0.3% |
||||||||
Agilent Technologies, Inc. |
10,958 | $ | 562,146 | |||||
Fortive Corp. |
37,948 | 2,187,702 | ||||||
2,749,848 | ||||||||
Engines - Internal Combustion — 0.2% |
||||||||
Cummins, Inc. |
10,180 | 1,511,628 | ||||||
Enterprise Software/Service — 1.3% |
||||||||
CA, Inc. |
12,277 | 396,179 | ||||||
Oracle Corp. |
239,851 | 10,215,254 | ||||||
10,611,433 | ||||||||
Entertainment Software — 0.2% |
||||||||
Activision Blizzard, Inc. |
18,813 | 849,031 | ||||||
Electronic Arts, Inc.† |
10,628 | 919,322 | ||||||
1,768,353 | ||||||||
Finance - Consumer Loans — 0.2% |
||||||||
Synchrony Financial |
40,161 | 1,455,435 | ||||||
Finance - Credit Card — 3.2% |
||||||||
American Express Co. |
57,742 | 4,622,824 | ||||||
Discover Financial Services |
32,069 | 2,281,389 | ||||||
MasterCard, Inc., Class A |
69,605 | 7,688,568 | ||||||
Visa, Inc., Class A# |
130,424 | 11,469,487 | ||||||
26,062,268 | ||||||||
Finance - Investment Banker/Broker — 0.3% |
||||||||
Charles Schwab Corp.# |
62,836 | 2,539,203 | ||||||
Finance - Other Services — 0.6% |
||||||||
CME Group, Inc.# |
24,376 | 2,960,709 | ||||||
Intercontinental Exchange, Inc. |
33,070 | 1,889,289 | ||||||
4,849,998 | ||||||||
Food - Confectionery — 0.1% |
||||||||
J.M. Smucker Co. |
4,413 | 625,454 | ||||||
Food - Misc./Diversified — 1.3% |
||||||||
Campbell Soup Co.# |
19,737 | 1,171,391 | ||||||
General Mills, Inc. |
81,087 | 4,895,222 | ||||||
Kraft Heinz Co. |
47,217 | 4,320,828 | ||||||
10,387,441 | ||||||||
Food - Retail — 0.4% |
||||||||
Kroger Co. |
102,481 | 3,258,896 | ||||||
Gas-Distribution — 0.5% |
||||||||
CenterPoint Energy, Inc. |
107,674 | 2,941,654 | ||||||
NiSource, Inc. |
36,845 | 880,964 | ||||||
3,822,618 | ||||||||
Home Decoration Products — 0.3% |
||||||||
Newell Brands, Inc.# |
46,592 | 2,284,406 | ||||||
Hotels/Motels — 0.4% |
||||||||
Marriott International, Inc., Class A |
24,363 | 2,119,337 | ||||||
Wyndham Worldwide Corp. |
12,248 | 1,019,524 | ||||||
3,138,861 | ||||||||
Industrial Automated/Robotic — 0.2% |
||||||||
Rockwell Automation, Inc. |
11,351 | 1,715,136 | ||||||
Industrial Gases — 0.4% |
||||||||
Air Products & Chemicals, Inc. |
25,402 | 3,568,219 | ||||||
Insurance Brokers — 0.3% |
||||||||
Aon PLC# |
4,393 | 508,051 | ||||||
Marsh & McLennan Cos., Inc. |
16,907 | 1,242,326 | ||||||
Willis Towers Watson PLC |
2,553 | 327,882 | ||||||
2,078,259 | ||||||||
83 |
VALIC Company II Socially Responsible Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS (continued) |
||||||||
Insurance - Life/Health — 1.3% |
||||||||
Aflac, Inc. |
35,412 | $ | 2,562,058 | |||||
Lincoln National Corp. |
8,769 | 615,233 | ||||||
Principal Financial Group, Inc.# |
11,542 | 721,837 | ||||||
Prudential Financial, Inc. |
59,207 | 6,544,742 | ||||||
10,443,870 | ||||||||
Insurance - Multi-line — 1.9% |
||||||||
Allstate Corp. |
37,523 | 3,082,889 | ||||||
Chubb, Ltd. |
57,899 | 7,999,905 | ||||||
Cincinnati Financial Corp.# |
6,024 | 439,511 | ||||||
Hartford Financial Services Group, Inc. |
20,221 | 988,605 | ||||||
Loews Corp. |
55,265 | 2,596,350 | ||||||
15,107,260 | ||||||||
Insurance - Property/Casualty — 0.3% |
||||||||
Travelers Cos., Inc. |
20,300 | 2,481,472 | ||||||
Insurance - Reinsurance — 2.3% |
||||||||
Berkshire Hathaway, Inc., Class B† |
107,368 | 18,405,022 | ||||||
Internet Content - Entertainment — 2.0% |
||||||||
Facebook, Inc., Class A† |
98,706 | 13,378,611 | ||||||
Netflix, Inc.† |
16,809 | 2,389,063 | ||||||
15,767,674 | ||||||||
Investment Management/Advisor Services — 1.0% |
||||||||
Ameriprise Financial, Inc. |
12,211 | 1,605,747 | ||||||
BlackRock, Inc. |
11,861 | 4,595,663 | ||||||
Franklin Resources, Inc. |
20,511 | 882,793 | ||||||
Invesco, Ltd. |
13,676 | 440,230 | ||||||
T. Rowe Price Group, Inc. |
7,505 | 534,431 | ||||||
8,058,864 | ||||||||
Machinery - Construction & Mining — 0.6% |
||||||||
Caterpillar, Inc. |
52,057 | 5,031,830 | ||||||
Machinery - Farming — 0.4% |
||||||||
Deere & Co.# |
30,086 | 3,294,116 | ||||||
Machinery - General Industrial — 0.0% |
||||||||
Roper Technologies, Inc.# |
1,163 | 243,300 | ||||||
Medical Information Systems — 0.1% |
||||||||
Cerner Corp.†# |
16,416 | 903,537 | ||||||
Medical Instruments — 0.2% |
||||||||
Edwards Lifesciences Corp.† |
15,364 | 1,444,831 | ||||||
Medical Labs & Testing Services — 0.2% |
||||||||
Laboratory Corp. of America Holdings† |
7,191 | 1,022,992 | ||||||
Quest Diagnostics, Inc.# |
5,800 | 565,152 | ||||||
1,588,144 | ||||||||
Medical Products — 1.5% |
||||||||
Becton Dickinson and Co. |
38,867 | 7,114,605 | ||||||
Stryker Corp.# |
39,963 | 5,137,643 | ||||||
12,252,248 | ||||||||
Medical-Biomedical/Gene — 3.9% |
||||||||
Alexion Pharmaceuticals, Inc.† |
16,295 | 2,138,719 | ||||||
Amgen, Inc. |
56,037 | 9,892,212 | ||||||
Biogen, Inc.† |
12,242 | 3,533,041 | ||||||
Celgene Corp.† |
53,531 | 6,611,614 | ||||||
Gilead Sciences, Inc. |
76,845 | 5,416,035 | ||||||
Illumina, Inc.†# |
6,349 | 1,062,823 | ||||||
Regeneron Pharmaceuticals, Inc.† |
4,165 | 1,555,627 | ||||||
Vertex Pharmaceuticals, Inc.† |
14,151 | 1,282,364 | ||||||
31,492,435 | ||||||||
Security Description | Shares | Value (Note 2) |
||||||
Medical - Drugs — 1.6% |
||||||||
AbbVie, Inc. |
153,802 | $ | 9,511,116 | |||||
Zoetis, Inc. |
62,084 | 3,309,698 | ||||||
12,820,814 | ||||||||
Medical - Generic Drugs — 0.2% |
||||||||
Mylan NV† |
28,444 | 1,190,381 | ||||||
Perrigo Co. PLC# |
8,279 | 619,021 | ||||||
1,809,402 | ||||||||
Medical - HMO — 1.7% |
||||||||
Humana, Inc. |
9,726 | 2,054,618 | ||||||
UnitedHealth Group, Inc. |
70,785 | 11,706,423 | ||||||
13,761,041 | ||||||||
Medical - Hospitals — 0.2% |
||||||||
HCA Holdings, Inc.† |
19,984 | 1,743,404 | ||||||
Medical - Wholesale Drug Distribution — 0.8% |
||||||||
AmerisourceBergen Corp.# |
17,803 | 1,629,153 | ||||||
Cardinal Health, Inc.# |
31,658 | 2,576,011 | ||||||
McKesson Corp. |
13,419 | 2,014,594 | ||||||
6,219,758 | ||||||||
Multimedia — 1.8% |
||||||||
Twenty-First Century Fox, Inc., Class A |
50,956 | 1,524,604 | ||||||
Twenty-First Century Fox, Inc., Class B |
49,618 | 1,456,288 | ||||||
Viacom, Inc., Class B |
17,767 | 771,976 | ||||||
Walt Disney Co. |
100,359 | 11,048,522 | ||||||
14,801,390 | ||||||||
Networking Products — 1.3% |
||||||||
Cisco Systems, Inc. |
305,307 | 10,435,393 | ||||||
Non-Hazardous Waste Disposal — 0.3% |
||||||||
Republic Services, Inc. |
42,928 | 2,659,390 | ||||||
Office Automation & Equipment — 0.1% |
||||||||
Xerox Corp. |
69,111 | 514,186 | ||||||
Oil Companies - Exploration & Production — 2.7% |
||||||||
Anadarko Petroleum Corp. |
35,536 | 2,297,403 | ||||||
Apache Corp.# |
24,537 | 1,290,401 | ||||||
Cabot Oil & Gas Corp.# |
16,625 | 364,088 | ||||||
Devon Energy Corp. |
34,331 | 1,488,592 | ||||||
EOG Resources, Inc. |
30,897 | 2,996,700 | ||||||
EQT Corp. |
7,872 | 471,454 | ||||||
Hess Corp.# |
47,123 | 2,424,007 | ||||||
Marathon Oil Corp.# |
165,552 | 2,648,832 | ||||||
Noble Energy, Inc. |
20,412 | 743,201 | ||||||
Occidental Petroleum Corp. |
86,573 | 5,674,860 | ||||||
Pioneer Natural Resources Co.# |
6,458 | 1,200,994 | ||||||
21,600,532 | ||||||||
Oil Companies - Integrated — 0.1% |
||||||||
Murphy Oil Corp.# |
34,888 | 986,981 | ||||||
Oil Field Machinery & Equipment — 0.3% |
||||||||
National Oilwell Varco, Inc.# |
51,004 | 2,061,582 | ||||||
Oil Refining & Marketing — 0.3% |
||||||||
Marathon Petroleum Corp. |
12,202 | 605,219 | ||||||
Phillips 66 |
16,995 | 1,328,839 | ||||||
Valero Energy Corp. |
5,183 | 352,185 | ||||||
2,286,243 | ||||||||
Oil-Field Services — 1.2% |
||||||||
Baker Hughes, Inc. |
31,181 | 1,879,591 | ||||||
Schlumberger, Ltd. |
94,538 | 7,597,073 | ||||||
9,476,664 | ||||||||
84 |
VALIC Company II Socially Responsible Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares | Value (Note 2) |
||||||
COMMON STOCKS (continued) |
||||||||
Paper & Related Products — 0.3% |
||||||||
International Paper Co. |
41,685 | $ | 2,196,799 | |||||
Pharmacy Services — 0.4% |
||||||||
Express Scripts Holding Co.†# |
42,087 | 2,973,446 | ||||||
Pipelines — 1.0% |
||||||||
Enbridge, Inc. |
111,636 | 4,671,958 | ||||||
Kinder Morgan, Inc.# |
109,565 | 2,334,830 | ||||||
ONEOK, Inc.# |
25,861 | 1,397,787 | ||||||
8,404,575 | ||||||||
Real Estate Investment Trusts — 5.3% |
||||||||
American Tower Corp. |
59,738 | 6,857,325 | ||||||
AvalonBay Communities, Inc. |
8,787 | 1,614,875 | ||||||
Boston Properties, Inc. |
4,161 | 578,504 | ||||||
Crown Castle International Corp.# |
46,061 | 4,308,085 | ||||||
Digital Realty Trust, Inc.# |
5,391 | 582,228 | ||||||
Equinix, Inc.# |
4,741 | 1,782,948 | ||||||
Equity Residential |
15,787 | 995,686 | ||||||
Essex Property Trust, Inc.# |
799 | 187,525 | ||||||
GGP, Inc. |
35,364 | 879,149 | ||||||
HCP, Inc. |
63,567 | 2,084,362 | ||||||
Host Hotels & Resorts, Inc.# |
83,156 | 1,495,976 | ||||||
Prologis, Inc.# |
35,578 | 1,816,257 | ||||||
Public Storage |
11,458 | 2,606,237 | ||||||
Realty Income Corp.# |
11,177 | 684,927 | ||||||
Simon Property Group, Inc. |
35,226 | 6,495,674 | ||||||
Ventas, Inc.# |
39,584 | 2,574,939 | ||||||
Vornado Realty Trust |
12,768 | 1,402,820 | ||||||
Welltower, Inc. |
31,049 | 2,185,229 | ||||||
Weyerhaeuser Co.# |
106,431 | 3,588,853 | ||||||
42,721,599 | ||||||||
Retail - Apparel/Shoe — 0.6% |
||||||||
Coach, Inc.# |
24,099 | 917,931 | ||||||
L Brands, Inc. |
26,870 | 1,413,900 | ||||||
Ross Stores, Inc. |
35,761 | 2,452,489 | ||||||
4,784,320 | ||||||||
Retail - Auto Parts — 0.2% |
||||||||
O’Reilly Automotive, Inc.†# |
5,028 | 1,366,158 | ||||||
Retail - Automobile — 0.0% |
||||||||
CarMax, Inc.† |
3,681 | 237,572 | ||||||
Retail - Building Products — 0.6% |
||||||||
Lowe’s Cos., Inc. |
62,390 | 4,639,944 | ||||||
Retail - Consumer Electronics — 0.0% |
||||||||
Best Buy Co., Inc.# |
7,266 | 320,649 | ||||||
Retail - Discount — 0.4% |
||||||||
Dollar General Corp. |
23,493 | 1,715,459 | ||||||
Dollar Tree, Inc.† |
16,210 | 1,242,983 | ||||||
2,958,442 | ||||||||
Retail - Drug Store — 0.6% |
||||||||
Walgreens Boots Alliance, Inc. |
58,672 | 5,068,087 | ||||||
Retail - Jewelry — 0.0% |
||||||||
Tiffany & Co.# |
1,850 | 169,959 | ||||||
Retail - Major Department Stores — 0.8% |
||||||||
TJX Cos., Inc. |
87,621 | 6,873,867 | ||||||
Retail - Office Supplies — 0.0% |
||||||||
Staples, Inc. |
30,753 | 276,469 | ||||||
Retail - Perfume & Cosmetics — 0.1% |
||||||||
Ulta Beauty, Inc.† |
2,547 | 696,426 | ||||||
Security Description | Shares | Value (Note 2) |
||||||
Retail - Regional Department Stores — 0.2% |
||||||||
Kohl’s Corp.# |
19,822 | $ | 844,813 | |||||
Macy’s, Inc.# |
23,549 | 782,298 | ||||||
1,627,111 | ||||||||
Retail - Restaurants — 1.2% |
||||||||
Chipotle Mexican Grill, Inc.†# |
725 | 303,587 | ||||||
Darden Restaurants, Inc.# |
6,709 | 501,028 | ||||||
Starbucks Corp. |
113,005 | 6,426,594 | ||||||
Yum! Brands, Inc. |
37,577 | 2,454,530 | ||||||
9,685,739 | ||||||||
Semiconductor Components - Integrated Circuits — 1.0% |
||||||||
Analog Devices, Inc. |
29,212 | 2,393,339 | ||||||
QUALCOMM, Inc. |
100,398 | 5,670,479 | ||||||
8,063,818 | ||||||||
Semiconductor Equipment — 0.5% |
||||||||
Applied Materials, Inc. |
64,853 | 2,348,976 | ||||||
KLA-Tencor Corp. |
17,343 | 1,562,951 | ||||||
3,911,927 | ||||||||
Steel - Producers — 0.1% |
||||||||
Nucor Corp. |
16,480 | 1,031,154 | ||||||
Telecom Services — 0.1% |
||||||||
Level 3 Communications, Inc.† |
10,841 | 620,647 | ||||||
Telephone - Integrated — 0.4% |
||||||||
CenturyLink, Inc.# |
101,001 | 2,450,284 | ||||||
Frontier Communications Corp.# |
223,976 | 656,250 | ||||||
3,106,534 | ||||||||
Television — 0.2% |
||||||||
CBS Corp., Class B |
19,927 | 1,313,588 | ||||||
Textile - Home Furnishings — 0.1% |
||||||||
Mohawk Industries, Inc.† |
5,332 | 1,206,951 | ||||||
Tools-Hand Held — 0.2% |
||||||||
Stanley Black & Decker, Inc. |
10,046 | 1,277,349 | ||||||
Toys — 0.0% |
||||||||
Mattel, Inc.# |
13,206 | 339,790 | ||||||
Transport - Rail — 1.3% |
||||||||
CSX Corp. |
52,381 | 2,543,622 | ||||||
Norfolk Southern Corp. |
17,912 | 2,167,889 | ||||||
Union Pacific Corp. |
53,201 | 5,742,516 | ||||||
10,454,027 | ||||||||
Transport - Services — 0.9% |
||||||||
United Parcel Service, Inc., Class B |
68,007 | 7,192,420 | ||||||
Vitamins & Nutrition Products — 0.2% |
||||||||
Mead Johnson Nutrition Co. |
20,472 | 1,797,237 | ||||||
Water — 0.1% |
||||||||
American Water Works Co., Inc. |
9,183 | 716,274 | ||||||
Web Portals/ISP — 3.4% |
||||||||
Alphabet, Inc., Class A† |
16,446 | 13,895,719 | ||||||
Alphabet, Inc., Class C† |
13,440 | 11,063,942 | ||||||
Yahoo!, Inc.† |
49,585 | 2,264,051 | ||||||
27,223,712 | ||||||||
Wireless Equipment — 0.1% |
||||||||
Motorola Solutions, Inc. |
6,303 | 497,748 | ||||||
Total Long-Term Investment Securities |
||||||||
(cost $584,671,236) |
|
783,778,486 | ||||||
85 |
VALIC Company II Socially Responsible Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares/ Principal Amount |
Value (Note 2) |
||||||
SHORT-TERM INVESTMENT SECURITIES — 3.7% |
||||||||
Registered Investment Companies — 0.8% |
||||||||
State Street Navigator Securities Lending Government Money Market Portfolio 0.50%(1)(2) |
6,588,519 | $ | 6,588,519 | |||||
U.S. Government Treasuries — 2.9% |
||||||||
United States Treasury Bills |
||||||||
0.43% due 03/02/2017 |
$ | 5,000,000 | 4,999,935 | |||||
0.44% due 03/09/2017 |
5,000,000 | 4,999,530 | ||||||
0.49% due 03/02/2017 |
5,000,000 | 4,999,935 | ||||||
0.49% due 03/16/2017#(3) |
3,200,000 | 3,199,437 | ||||||
0.51% due 03/16/2017# |
5,000,000 | 4,999,120 | ||||||
23,197,957 | ||||||||
Total Short-Term Investment Securities |
||||||||
(cost $29,786,191) |
29,786,476 | |||||||
REPURCHASE AGREEMENTS — 0.4% |
||||||||
Agreement with Fixed Income Clearing Corp., bearing interest at 0.03%, dated 02/28/2017, to be repurchased 03/01/2017 in the amount of $3,329,003 and collateralized by $3,385,000 of United States Treasury Notes, bearing interest at 0.88%, due 02/15/2047 and having an approximate value of $3,397,694 (cost $3,329,000) |
3,329,000 | 3,329,000 | ||||||
TOTAL INVESTMENTS |
||||||||
(cost $617,786,427)(4) |
101.4 | % | 816,893,962 | |||||
Liabilities in excess of other assets |
(1.4 | ) | (10,943,324 | ) | ||||
NET ASSETS |
100.0 | % | $ | 805,950,638 | ||||
# | The security or a portion thereof is out on loan (see Note 2) |
† | Non-income producing security |
(1) | The rate shown is the 7-day yield as of February 28, 2017. |
(2) | At February 28, 2017, the Fund had loaned securities with a total value of $91,539,741. This was secured by collateral of $6,588,519, which was received in cash and subsequently invested in short-term investments currently valued at $6,588,519 as reported in the Portfolio of Investments. Additional collateral of $87,701,993 was received in the form of fixed income pooled securities, which the Fund cannot sell or repledge and accordingly are not reflected in the Fund’s assets and liabilities. |
The components of the fixed income pooled securities referenced above are as follows:
Securities |
Coupon Range |
Maturity Date Range |
Value as of February 28, 2017 |
|||||
Federal Home Loan Mtg. Corp. |
2.50% to 4.50% | 11/01/2027 to 09/01/2044 | 5,097,570 | |||||
Federal National Mtg. Assoc. |
2.00% to 4.25% | 01/01/2032 to 02/25/2044 | 8,887,109 | |||||
Government National Mtg. Assoc. |
2.50% to 3.50% | 11/20/2027 to 11/20/2046 | 20,449,888 | |||||
United States Treasury Bills |
0.00% | 03/02/2017 to 12/07/2017 | 5,374,402 | |||||
United States Treasury Notes/Bonds |
zero coupon to 8.75% | 04/15/2017 to 11/15/2046 | 47,893,024 |
(3) | The security or a portion thereof was pledged as collateral to cover margin requirements for open futures contracts. |
(4) | See Note 5 for cost of investments on a tax basis. |
Futures Contracts | ||||||||||||||||||||||
Number of Contracts |
Type | Description | Expiration Month |
Value at Trade Date |
Value as of February 28, 2017 |
Unrealized Appreciation (Depreciation) |
||||||||||||||||
204 | Long | S&P 500 E-Mini Index |
March 2017 | $ | 23,137,782 | $ | 24,100,560 | $ | 962,778 | |||||||||||||
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 - Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Common Stocks |
$ | 783,778,486 | $ | — | $ | — | $ | 783,778,486 | ||||||||
Short-Term Investment Securities: |
||||||||||||||||
Registered Investment Companies |
6,588,519 | — | — | 6,588,519 | ||||||||||||
U.S. Government Treasuries |
— | 23,197,957 | — | 23,197,957 | ||||||||||||
Repurchase Agreements |
— | 3,329,000 | — | 3,329,000 | ||||||||||||
Total Investments at Value |
$ | 790,367,005 | $ | 26,526,957 | $ | — | $ | 816,893,962 | ||||||||
Other Financial Instruments:+ |
||||||||||||||||
Futures Contracts |
$ | 962,778 | $ | — | $ | — | $ | 962,778 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
+ | Other financial instruments are derivative instruments, not reflected in the Portfolio of Investments, such as futures, forward, swap and written option contracts, which are valued at the unrealized appreciation (depreciation) on the instrument. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
See Notes to Financial Statements
86 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Industry Allocation*
Sovereign |
8.5 | % | ||
Federal National Mtg. Assoc. |
8.1 | |||
Federal Home Loan Mtg. Corp. |
7.0 | |||
Diversified Banking Institutions |
4.8 | |||
Time Deposits |
4.2 | |||
Registered Investment Companies |
3.7 | |||
Oil Companies — Exploration & Production |
3.2 | |||
Cable/Satellite TV |
3.1 | |||
Banks — Commercial |
3.1 | |||
Pipelines |
3.0 | |||
Government National Mtg. Assoc. |
2.4 | |||
Diversified Financial Services |
2.3 | |||
Electric — Integrated |
1.9 | |||
Telephone — Integrated |
1.6 | |||
Medical — Hospitals |
1.6 | |||
Oil Companies — Integrated |
1.4 | |||
Auto — Cars/Light Trucks |
1.4 | |||
Cellular Telecom |
1.2 | |||
Real Estate Investment Trusts |
1.1 | |||
Satellite Telecom |
1.1 | |||
Paper & Related Products |
1.0 | |||
Casino Hotels |
1.0 | |||
Computers |
1.0 | |||
United States Treasury Bonds |
0.9 | |||
Gambling (Non-Hotel) |
0.8 | |||
Computer Services |
0.8 | |||
Finance — Leasing Companies |
0.8 | |||
Finance — Auto Loans |
0.7 | |||
Finance — Consumer Loans |
0.7 | |||
Banks — Super Regional |
0.7 | |||
Chemicals — Diversified |
0.7 | |||
Building — Residential/Commercial |
0.7 | |||
Cruise Lines |
0.7 | |||
Printing — Commercial |
0.6 | |||
Metal — Copper |
0.6 | |||
Oil — Field Services |
0.6 | |||
Savings & Loans/Thrifts |
0.6 | |||
Brewery |
0.6 | |||
Food — Retail |
0.6 | |||
Insurance — Multi-line |
0.6 | |||
Computers — Memory Devices |
0.6 | |||
Metal Processors & Fabrication |
0.5 | |||
Insurance — Life/Health |
0.5 | |||
Coal |
0.5 | |||
Airlines |
0.5 | |||
Aerospace/Defense — Equipment |
0.5 | |||
Real Estate Management/Services |
0.5 | |||
Independent Power Producers |
0.5 | |||
Steel — Producers |
0.5 | |||
Rental Auto/Equipment |
0.5 | |||
Diversified Manufacturing Operations |
0.4 | |||
Oil Refining & Marketing |
0.4 | |||
United States Treasury Notes |
0.4 | |||
Hazardous Waste Disposal |
0.4 | |||
Enterprise Software/Service |
0.4 | |||
Retail — Appliances |
0.4 | |||
Internet Content — Entertainment |
0.4 | |||
Containers — Metal/Glass |
0.4 | |||
Investment Management/Advisor Services |
0.4 | |||
SupraNational Banks |
0.4 | |||
Energy — Alternate Sources |
0.3 | |||
Applications Software |
0.3 | |||
Metal — Diversified |
0.3 | |||
Internet Connectivity Services |
0.3 | |||
Banks — Money Center |
0.3 | |||
Computers — Integrated Systems |
0.3 | |||
Finance — Credit Card |
0.3 | |||
Financial Guarantee Insurance |
0.3 | |||
Marine Services |
0.3 |
Food — Wholesale/Distribution |
0.3 | |||
Broadcast Services/Program |
0.3 | |||
Medical — HMO |
0.3 | |||
Security Services |
0.3 | |||
Building & Construction — Misc. |
0.3 | |||
Finance — Mortgage Loan/Banker |
0.3 | |||
Chemicals — Specialty |
0.3 | |||
Medical — Biomedical/Gene |
0.3 | |||
Multimedia |
0.3 | |||
Containers — Paper/Plastic |
0.3 | |||
Insurance — Mutual |
0.3 | |||
Telecom Services |
0.3 | |||
Batteries/Battery Systems |
0.3 | |||
Finance — Other Services |
0.3 | |||
Food — Dairy Products |
0.3 | |||
Insurance — Reinsurance |
0.3 | |||
Machinery — General Industrial |
0.3 | |||
Metal — Aluminum |
0.2 | |||
Networking Products |
0.2 | |||
Electronic Components — Semiconductors |
0.2 | |||
Sovereign Agency |
0.2 | |||
Building Products — Wood |
0.2 | |||
Airport Development/Maintenance |
0.2 | |||
Telecommunication Equipment |
0.2 | |||
Auto — Heavy Duty Trucks |
0.2 | |||
Hotels/Motels |
0.2 | |||
Office Automation & Equipment |
0.2 | |||
Metal — Iron |
0.2 | |||
Medical — Drugs |
0.2 | |||
Agricultural Chemicals |
0.2 | |||
Food — Flour & Grain |
0.2 | |||
Wire & Cable Products |
0.2 | |||
Retail — Restaurants |
0.2 | |||
Electric — Generation |
0.2 | |||
Home Furnishings |
0.2 | |||
Soap & Cleaning Preparation |
0.2 | |||
Machinery — Construction & Mining |
0.2 | |||
Banks — Special Purpose |
0.2 | |||
Semiconductor Equipment |
0.2 | |||
Travel Services |
0.2 | |||
Oil Field Machinery & Equipment |
0.2 | |||
Chemicals — Plastics |
0.2 | |||
Finance — Commercial |
0.2 | |||
Electric — Distribution |
0.1 | |||
E-Commerce/Services |
0.1 | |||
Radio |
0.1 | |||
Building & Construction Products — Misc. |
0.1 | |||
Food — Misc./Diversified |
0.1 | |||
Tools — Hand Held |
0.1 | |||
Aerospace/Defense |
0.1 | |||
Firearms & Ammunition |
0.1 | |||
Distribution/Wholesale |
0.1 | |||
Retail — Drug Store |
0.1 | |||
Industrial Gases |
0.1 | |||
Semiconductor Components — Integrated Circuits |
0.1 | |||
Banks — Fiduciary |
0.1 | |||
Beverages — Non-alcoholic |
0.1 | |||
Medical Labs & Testing Services |
0.1 | |||
Cosmetics & Toiletries |
0.1 | |||
Building Products — Cement |
0.1 | |||
Television |
0.1 | |||
Petrochemicals |
0.1 | |||
Advertising Agencies |
0.1 | |||
Food — Meat Products |
0.1 | |||
Oil & Gas Drilling |
0.1 | |||
Beverages — Wine/Spirits |
0.1 | |||
Building Products — Air & Heating |
0.1 | |||
Retail — Discount |
0.1 | |||
Machinery — Farming |
0.1 |
87 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Industry Allocation* (continued)
Medical — Generic Drugs |
0.1 | % | ||
Commercial Services |
0.1 | |||
Transport — Equipment & Leasing |
0.1 | |||
Pharmacy Services |
0.1 | |||
E-Commerce/Products |
0.1 | |||
Transport — Marine |
0.1 | |||
Federal Home Loan Bank |
0.1 | |||
Data Processing/Management |
0.1 | |||
104.9 | % | |||
Credit Quality†#
Aaa |
22.5 | % | ||
Aa |
3.1 | |||
A |
9.4 | |||
Baa |
14.8 | |||
Ba |
13.7 | |||
B |
22.7 | |||
Caa |
7.8 | |||
Not Rated@ |
6.0 | |||
100.0 | % | |||
* | Calculated as a percentage of net assets. |
† | Source Standard & Poor’s |
# | Calculated as a percentage of total debt issues, excluding short-term securities |
@ | Represents debt issues that either have no rating, or the rating is unavailable from the data source. |
88 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
ASSET BACKED SECURITIES — 2.0% |
| |||||||
Diversified Financial Services — 2.0% |
| |||||||
American Express Credit Account Master Trust FRS |
$ | 84,000 | $ | 84,316 | ||||
AmeriCredit Automobile Receivables Trust |
496,000 | 493,325 | ||||||
AmeriCredit Automobile Receivables Trust |
60,000 | 60,613 | ||||||
Avis Budget Rental Car Funding AESOP LLC |
450,000 | 449,947 | ||||||
Capital One Multi-Asset Execution Trust |
350,000 | 346,404 | ||||||
Carmax Auto Owner Trust |
500,000 | 490,975 | ||||||
CarMax Auto Owner Trust |
332,000 | 327,204 | ||||||
CD Commercial Mtg. Trust |
2,500,000 | 2,561,974 | ||||||
CGGS Commercial Mtg. Trust |
500,000 | 503,370 | ||||||
Chase Issuance Trust |
300,000 | 297,797 | ||||||
Chase Mtg. Trust VRS |
974,408 | 974,683 | ||||||
Citibank Credit Card Issuance Trust |
541,000 | 545,936 | ||||||
Citibank Credit Card Issuance Trust |
142,000 | 146,153 | ||||||
Citigroup Commercial Mtg. Trust |
584,000 | 573,648 | ||||||
Citigroup Commercial Mtg. Trust |
226,000 | 229,531 | ||||||
Citigroup Commercial Mtg. Trust |
164,037 | 166,750 | ||||||
Commercial Mtg. Trust VRS |
3,156,301 | 170,752 | ||||||
Commercial Mtg. Trust |
80,000 | 81,431 | ||||||
Commercial Mtg. Trust |
41,875 | 42,861 | ||||||
Commercial Mtg. Trust |
100,000 | 102,601 | ||||||
Core Industrial Trust |
1,447,000 | 1,481,817 | ||||||
CSAIL Commercial Mortgage Trust |
25,000 | 25,545 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Diversified Financial Services (continued) |
| |||||||
CSMC Trust |
$ | 950,000 | $ | 1,004,593 | ||||
Ford Credit Auto Owner Trust |
129,000 | 129,453 | ||||||
Ford Credit Auto Owner Trust* |
120,000 | 120,991 | ||||||
GS Mtg. Securities Corp. II |
46,875 | 47,641 | ||||||
GS Mtg. Securities Trust |
75,000 | 76,568 | ||||||
Honda Auto Receivables 2016-2 Owner Trust |
168,000 | 166,957 | ||||||
Hudson Yards 2016-10HY Mortgage Trust |
2,280,000 | 2,209,935 | ||||||
JPMDB Commercial Mtg Securities Trust |
833,000 | 843,216 | ||||||
Morgan Stanley Capital Barclays Bank Trust |
649,000 | 637,088 | ||||||
Santander Drive Auto Receivables Trust |
192,000 | 193,349 | ||||||
Synchrony Credit Card Master Note Trust |
100,000 | 100,437 | ||||||
Synchrony Credit Card Master Note Trust |
100,000 | 99,557 | ||||||
Taco Bell Funding LLC |
165,170 | 165,756 | ||||||
Toyota Auto Receivables Owner Trust |
200,000 | 198,586 | ||||||
Total Asset Backed Securities |
||||||||
(cost $16,373,103) |
16,151,760 | |||||||
U.S. CORPORATE BONDS & NOTES — 45.7% |
| |||||||
Advertising Agencies — 0.1% |
| |||||||
Interpublic Group of Cos., Inc. |
286,000 | 296,161 | ||||||
Omnicom Group, Inc. |
391,000 | 392,301 | ||||||
688,462 | ||||||||
Aerospace/Defense — 0.0% |
| |||||||
Boeing Co. |
361,000 | 349,232 | ||||||
Aerospace/Defense - Equipment — 0.5% |
| |||||||
Harris Corp. |
468,000 | 505,049 | ||||||
L-3 Technologies, Inc. |
307,000 | 311,203 |
89 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Aerospace/Defense - Equipment (continued) |
| |||||||
Moog, Inc. |
$ | 1,218,000 | $ | 1,248,450 | ||||
Triumph Group, Inc. |
580,000 | 552,450 | ||||||
Triumph Group, Inc. |
1,701,000 | 1,607,445 | ||||||
4,224,597 | ||||||||
Agricultural Chemicals — 0.2% |
| |||||||
CF Industries, Inc. |
135,000 | 135,449 | ||||||
CF Industries, Inc. |
686,000 | 702,751 | ||||||
Mosaic Co. |
385,000 | 361,383 | ||||||
Mosaic Co. |
257,000 | 267,929 | ||||||
1,467,512 | ||||||||
Airlines — 0.5% |
| |||||||
Allegiant Travel Co. |
1,127,000 | 1,160,810 | ||||||
American Airlines Pass-Through Trust |
589,000 | 596,362 | ||||||
Atlas Air, Inc. |
57,228 | 57,434 | ||||||
United Airlines Pass-Through Trust |
1,085,072 | 1,108,130 | ||||||
United Airlines Pass-Through Trust |
1,065,255 | 1,113,192 | ||||||
4,035,928 | ||||||||
Appliances — 0.0% |
| |||||||
Whirlpool Corp. |
266,000 | 268,095 | ||||||
Applications Software — 0.3% |
| |||||||
Microsoft Corp. |
308,000 | 310,120 | ||||||
Microsoft Corp. |
500,000 | 510,041 | ||||||
Microsoft Corp. |
162,000 | 155,023 | ||||||
Microsoft Corp. |
178,000 | 168,420 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Applications Software (continued) |
| |||||||
Microsoft Corp. |
$ | 517,000 | $ | 535,996 | ||||
Nuance Communications, Inc. |
1,165,000 | 1,189,756 | ||||||
2,869,356 | ||||||||
Auto - Cars/Light Trucks — 1.0% |
| |||||||
American Honda Finance Corp. |
583,000 | 575,717 | ||||||
American Honda Finance Corp. |
504,000 | 504,973 | ||||||
BMW US Capital LLC |
420,000 | 417,975 | ||||||
Daimler Finance North America LLC |
641,000 | 633,421 | ||||||
Daimler Finance North America LLC |
303,000 | 295,387 | ||||||
Daimler Finance North America LLC |
357,000 | 358,058 | ||||||
Daimler Finance North America LLC |
844,000 | 846,161 | ||||||
Ford Motor Co. |
460,000 | 473,049 | ||||||
Ford Motor Co. |
348,000 | 359,798 | ||||||
Ford Motor Credit Co. LLC |
658,000 | 654,781 | ||||||
Ford Motor Credit Co. LLC |
656,000 | 645,388 | ||||||
Hyundai Capital America |
965,000 | 968,648 | ||||||
Toyota Motor Credit Corp. |
1,002,000 | 1,004,549 | ||||||
Toyota Motor Credit Corp. |
321,000 | 323,484 | ||||||
8,061,389 | ||||||||
Auto - Heavy Duty Trucks — 0.2% |
| |||||||
JB Poindexter & Co., Inc. |
1,675,000 | 1,756,656 | ||||||
Banks - Commercial — 0.7% |
| |||||||
BankUnited, Inc. |
949,000 | 948,652 | ||||||
Citizens Bank NA |
268,000 | 267,485 | ||||||
Discover Bank |
368,000 | 360,598 |
90 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Banks - Commercial (continued) |
| |||||||
Fifth Third Bank |
$ | 299,000 | $ | 295,799 | ||||
Fifth Third Bank |
236,000 | 237,916 | ||||||
First Horizon National Corp. |
1,173,000 | 1,200,726 | ||||||
First Republic Bank |
256,000 | 258,847 | ||||||
First Tennessee Bank NA |
674,000 | 682,087 | ||||||
Regions Financial Corp. |
172,000 | 175,367 | ||||||
Regions Financial Corp. |
799,000 | 997,549 | ||||||
5,425,026 | ||||||||
Banks - Fiduciary — 0.1% |
| |||||||
Citizens Financial Group, Inc. |
842,000 | 866,046 | ||||||
Banks - Super Regional — 0.6% |
| |||||||
JPMorgan Chase Bank NA |
842,000 | 839,590 | ||||||
Wells Fargo & Co. |
EUR | 800,000 | 890,338 | |||||
Wells Fargo & Co. |
1,234,000 | 1,184,952 | ||||||
Wells Fargo & Co. |
833,000 | 836,922 | ||||||
Wells Fargo & Co. |
76,000 | 77,761 | ||||||
Wells Fargo & Co. |
410,000 | 426,824 | ||||||
Wells Fargo & Co. |
69,000 | 67,904 | ||||||
Wells Fargo & Co. |
357,000 | 372,421 | ||||||
Wells Fargo & Co. |
78,000 | 82,770 | ||||||
4,779,482 | ||||||||
Batteries/Battery Systems — 0.3% |
| |||||||
EnerSys |
2,028,000 | 2,063,490 | ||||||
Brewery — 0.4% |
| |||||||
Anheuser-Busch InBev Finance, Inc. |
315,000 | 316,038 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Brewery (continued) |
| |||||||
Anheuser-Busch InBev Finance, Inc. |
$ | 589,000 | $ | 595,573 | ||||
Anheuser-Busch InBev Finance, Inc. |
258,000 | 263,679 | ||||||
Anheuser-Busch InBev Finance, Inc. |
621,000 | 667,847 | ||||||
Anheuser-Busch InBev Finance, Inc. |
166,000 | 182,214 | ||||||
Anheuser-Busch InBev Worldwide, Inc. |
1,313,000 | 1,313,683 | ||||||
3,339,034 | ||||||||
Broadcast Services/Program — 0.3% |
| |||||||
Clear Channel Worldwide Holdings, Inc. |
2,424,000 | 2,448,240 | ||||||
Building & Construction Products - Misc. — 0.1% |
| |||||||
Standard Industries, Inc. |
1,104,000 | 1,126,080 | ||||||
Building & Construction - Misc. — 0.3% |
| |||||||
Weekley Homes LLC/Weekley Finance Corp. |
2,446,000 | 2,360,390 | ||||||
Building Products - Air & Heating — 0.1% |
| |||||||
Lennox International, Inc. |
520,000 | 513,412 | ||||||
Building Products - Cement — 0.1% |
| |||||||
Cemex Finance LLC |
400,000 | 415,500 | ||||||
Building Products - Wood — 0.2% |
| |||||||
Boise Cascade Co. |
1,240,000 | 1,267,900 | ||||||
Masco Corp. |
630,000 | 655,861 | ||||||
1,923,761 | ||||||||
Building - Residential/Commercial — 0.4% |
| |||||||
Lennar Corp. |
1,762,000 | 1,784,025 | ||||||
Meritage Homes Corp. |
1,050,000 | 1,178,625 | ||||||
2,962,650 | ||||||||
Cable/Satellite TV — 1.5% |
| |||||||
Block Communications, Inc. |
1,577,000 | 1,667,835 | ||||||
Cable One, Inc. |
1,131,000 | 1,181,895 |
91 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Cable/Satellite TV (continued) |
| |||||||
Cablevision Systems Corp. |
$ | 1,695,000 | $ | 1,737,375 | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital |
310,000 | 318,841 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital |
2,314,000 | 2,437,575 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital |
582,000 | 664,995 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital |
166,000 | 192,672 | ||||||
Comcast Corp. |
303,000 | 271,110 | ||||||
Comcast Corp. |
159,000 | 137,819 | ||||||
CSC Holdings LLC |
1,070,000 | 1,100,763 | ||||||
DISH DBS Corp. |
2,365,000 | 2,767,050 | ||||||
12,477,930 | ||||||||
Casino Hotels — 1.0% |
| |||||||
Caesars Growth Properties Holdings LLC/Caesars Growth Properties Finance, Inc. |
2,217,000 | 2,399,902 | ||||||
Chester Downs & Marina LLC Senior |
3,092,000 | 3,109,377 | ||||||
Downstream Development Authority of the Quapaw Tribe of Oklahoma |
1,013,000 | 1,005,403 | ||||||
Golden Nugget Escrow, Inc. |
1,824,000 | 1,947,120 | ||||||
8,461,802 | ||||||||
Cellular Telecom — 1.1% |
| |||||||
Sprint Corp. |
5,441,000 | 5,930,690 | ||||||
T-Mobile USA, Inc. |
2,891,000 | 2,970,502 | ||||||
8,901,192 | ||||||||
Chemicals - Diversified — 0.5% |
| |||||||
Eastman Chemical Co. |
EUR | 360,000 | 397,177 | |||||
Eastman Chemical Co. |
EUR | 690,000 | 754,136 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Chemicals - Diversified (continued) |
| |||||||
Eastman Chemical Co. |
$ | 271,000 | $ | 277,554 | ||||
Hexion, Inc. |
1,938,000 | 1,802,340 | ||||||
Hexion, Inc. |
237,000 | 244,110 | ||||||
Westlake Chemical Corp. |
366,000 | 359,611 | ||||||
3,834,928 | ||||||||
Chemicals - Plastics — 0.2% |
| |||||||
A. Schulman, Inc. |
1,219,000 | 1,286,045 | ||||||
Chemicals - Specialty — 0.3% |
| |||||||
HB Fuller Co. |
222,000 | 223,298 | ||||||
Lubrizol Corp. |
255,000 | 330,226 | ||||||
Unifrax I LLC/Unifrax Holding Co. |
1,653,000 | 1,648,868 | ||||||
2,202,392 | ||||||||
Coal — 0.5% |
| |||||||
Peabody Securities Finance Corp. |
1,607,000 | 1,639,140 | ||||||
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp. |
2,824,000 | 2,880,480 | ||||||
4,519,620 | ||||||||
Coatings/Paint — 0.0% |
| |||||||
RPM International, Inc. |
199,000 | 199,287 | ||||||
Commercial Services — 0.1% |
| |||||||
Ecolab, Inc. |
EUR | 480,000 | 515,834 | |||||
Commercial Services - Finance — 0.0% |
| |||||||
Automatic Data Processing, Inc. |
235,000 | 237,272 | ||||||
Computer Services — 0.8% |
| |||||||
Harland Clarke Holdings Corp. |
1,630,000 | 1,683,994 | ||||||
Harland Clarke Holdings Corp. |
2,594,000 | 2,503,210 | ||||||
Hewlett Packard Enterprise Co. |
849,000 | 901,247 |
92 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Computer Services (continued) |
| |||||||
Leidos Holdings, Inc. |
$ | 1,559,000 | $ | 1,621,578 | ||||
6,710,029 | ||||||||
Computers — 1.0% |
| |||||||
Apple, Inc. |
343,000 | 325,190 | ||||||
Apple, Inc. |
485,000 | 497,398 | ||||||
Apple, Inc. |
464,000 | 467,575 | ||||||
Apple, Inc. |
183,000 | 198,830 | ||||||
Diamond 1 Finance Corp./Diamond 2 Finance Corp. |
4,841,000 | 5,323,043 | ||||||
Diamond 1 Finance Corp./Diamond 2 Finance Corp. |
520,000 | 656,181 | ||||||
Diamond 1 Finance Corp./Diamond 2 Finance Corp. |
345,000 | 449,895 | ||||||
7,918,112 | ||||||||
Computers - Integrated Systems — 0.3% |
| |||||||
Diebold, Inc. |
2,477,000 | 2,718,507 | ||||||
Computers - Memory Devices — 0.3% |
| |||||||
Western Digital Corp. |
1,763,000 | 2,062,710 | ||||||
Containers - Metal/Glass — 0.4% |
| |||||||
Crown Cork & Seal Co., Inc. |
1,523,000 | 1,747,642 | ||||||
Owens-Brockway Glass Container, Inc. |
1,190,000 | 1,227,188 | ||||||
2,974,830 | ||||||||
Containers - Paper/Plastic — 0.3% |
| |||||||
Amcor Finance USA, Inc. |
540,000 | 536,355 | ||||||
Brambles USA, Inc. |
194,000 | 199,275 | ||||||
Multi-Color Corp. |
1,354,000 | 1,414,930 | ||||||
2,150,560 | ||||||||
Cosmetics & Toiletries — 0.1% |
| |||||||
Estee Lauder Cos., Inc. |
214,000 | 216,768 | ||||||
Procter & Gamble Co. |
615,000 | 604,626 | ||||||
821,394 | ||||||||
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Data Processing/Management — 0.1% |
| |||||||
Fidelity National Information Services, Inc. |
$ | 231,000 | $ | 225,379 | ||||
Fidelity National Information Services, Inc. |
199,000 | 217,963 | ||||||
443,342 | ||||||||
Distribution/Wholesale — 0.1% |
| |||||||
LKQ Corp. |
747,000 | 748,172 | ||||||
WW Grainger, Inc. |
216,000 | 207,001 | ||||||
955,173 | ||||||||
Diversified Banking Institutions — 2.7% |
| |||||||
Bank of America Corp. |
EUR | 1,000,000 | 1,142,198 | |||||
Bank of America Corp. FRS |
1,360,000 | 1,364,028 | ||||||
Bank of America Corp. |
253,000 | 253,940 | ||||||
Bank of America Corp. |
445,000 | 448,168 | ||||||
Bank of America Corp. |
1,458,000 | 1,486,078 | ||||||
Bank of America Corp. |
GBP | 700,000 | 1,008,356 | |||||
Bank of America Corp. |
548,000 | 651,211 | ||||||
Bank of America Corp. |
39,000 | 46,963 | ||||||
Citigroup, Inc. |
314,000 | 322,536 | ||||||
Citigroup, Inc. |
2,218,000 | 2,271,159 | ||||||
Citigroup, Inc. |
275,000 | 315,487 | ||||||
Goldman Sachs Group, Inc. |
EUR | 1,000,000 | 1,130,570 | |||||
Goldman Sachs Group, Inc. |
EUR | 625,000 | 716,839 | |||||
Goldman Sachs Group, Inc. FRS |
422,000 | 433,287 | ||||||
Goldman Sachs Group, Inc. |
460,000 | 453,130 | ||||||
Goldman Sachs Group, Inc. |
569,000 | 584,002 |
93 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Diversified Banking Institutions (continued) |
| |||||||
Goldman Sachs Group, Inc. |
$ | 173,000 | $ | 184,182 | ||||
Goldman Sachs Group, Inc. |
54,000 | 57,550 | ||||||
Goldman Sachs Group, Inc. |
751,000 | 916,989 | ||||||
Goldman Sachs Group, Inc. |
483,000 | 602,747 | ||||||
JPMorgan Chase & Co. |
815,000 | 819,735 | ||||||
JPMorgan Chase & Co. |
247,000 | 251,355 | ||||||
JPMorgan Chase & Co. |
599,000 | 584,495 | ||||||
JPMorgan Chase & Co. |
631,000 | 646,550 | ||||||
JPMorgan Chase & Co. FRS |
466,000 | 469,928 | ||||||
Morgan Stanley |
EUR | 900,000 | 997,395 | |||||
Morgan Stanley |
781,000 | 785,482 | ||||||
Morgan Stanley |
EUR | 800,000 | 917,126 | |||||
Morgan Stanley |
293,000 | 297,251 | ||||||
Morgan Stanley |
779,000 | 808,439 | ||||||
Morgan Stanley |
315,000 | 320,174 | ||||||
Morgan Stanley |
1,286,000 | 1,386,892 | ||||||
22,674,242 | ||||||||
Diversified Financial Services — 0.1% |
| |||||||
USAA Capital Corp. |
571,000 | 573,754 | ||||||
Diversified Manufacturing Operations — 0.4% |
| |||||||
General Electric Co. |
514,000 | 520,352 | ||||||
Illinois Tool Works, Inc. |
468,000 | 452,852 | ||||||
Ingersoll-Rand Global Holding Co., Ltd. |
691,000 | 833,647 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Diversified Manufacturing Operations (continued) |
| |||||||
Parker-Hannifin Corp. |
$ | 286,000 | $ | 288,146 | ||||
Parker-Hannifin Corp. |
225,000 | 227,938 | ||||||
Textron, Inc. |
353,000 | 352,896 | ||||||
Textron, Inc. |
416,000 | 425,320 | ||||||
Trinity Industries, Inc. |
402,000 | 403,757 | ||||||
3,504,908 | ||||||||
Electric - Distribution — 0.0% |
| |||||||
Entergy Louisiana LLC |
182,000 | 188,249 | ||||||
Electric - Integrated — 1.2% |
| |||||||
AES Corp. |
1,966,000 | 2,005,320 | ||||||
Consolidated Edison Co. of New York, Inc. |
245,000 | 250,536 | ||||||
Dominion Resources, Inc. |
172,000 | 174,164 | ||||||
Dominion Resources, Inc. |
719,000 | 785,944 | ||||||
Duke Energy Corp. |
327,000 | 301,018 | ||||||
Duke Energy Progress LLC |
425,000 | 432,353 | ||||||
Exelon Generation Co. LLC |
380,000 | 384,731 | ||||||
FirstEnergy Corp. |
433,000 | 570,746 | ||||||
Massachusetts Electric Co. |
946,000 | 920,718 | ||||||
Mirant Mid Atlantic LLC Pass Through Trust |
64,766 | 59,261 | ||||||
Mirant Mid Atlantic LLC Pass Through Trust |
1,861,877 | 1,661,725 | ||||||
Pacific Gas & Electric Co. |
484,000 | 486,139 | ||||||
South Carolina Electric & Gas Co. |
284,000 | 310,150 |
94 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Electric - Integrated (continued) |
| |||||||
Southern California Edison Co. |
$ | 715,000 | $ | 715,165 | ||||
Southern Co. |
614,000 | 613,955 | ||||||
Southern Power Co. |
268,000 | 271,125 | ||||||
Trans-Allegheny Interstate Line Co. |
147,000 | 151,292 | ||||||
10,094,342 | ||||||||
Electric - Transmission — 0.0% |
| |||||||
AEP Transmission Co. LLC |
140,000 | 142,023 | ||||||
Electronic Components - Misc. — 0.0% |
| |||||||
Corning, Inc. |
313,000 | 312,662 | ||||||
Electronic Components - Semiconductors — 0.2% |
| |||||||
Broadcom Corp./Broadcom Cayman Finance, Ltd. |
840,000 | 845,847 | ||||||
Intel Corp. |
1,120,000 | 1,121,097 | ||||||
1,966,944 | ||||||||
Energy - Alternate Sources — 0.3% |
| |||||||
Pattern Energy Group, Inc. |
706,000 | 724,532 | ||||||
TerraForm Power Operating LLC |
1,844,000 | 1,908,540 | ||||||
2,633,072 | ||||||||
Enterprise Software/Service — 0.4% |
| |||||||
Donnelley Financial Solutions, Inc. |
1,867,000 | 1,937,013 | ||||||
Oracle Corp. |
583,000 | 572,768 | ||||||
Oracle Corp. |
756,000 | 751,339 | ||||||
Oracle Corp. |
138,000 | 137,751 | ||||||
3,398,871 | ||||||||
Finance - Auto Loans — 0.7% |
| |||||||
Ally Financial, Inc. |
3,688,000 | 3,895,450 | ||||||
Credit Acceptance Corp. |
1,808,000 | 1,864,500 | ||||||
5,759,950 | ||||||||
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Finance - Commercial — 0.2% |
| |||||||
Jefferies Finance LLC/JFIN Co-Issuer Corp. |
$ | 768,000 | $ | 746,880 | ||||
Jefferies Finance LLC/JFIN Co-Issuer Corp. |
513,000 | 521,977 | ||||||
1,268,857 | ||||||||
Finance - Consumer Loans — 0.7% |
| |||||||
Enova International, Inc. |
2,385,000 | 2,444,625 | ||||||
Navient Corp. |
1,439,000 | 1,165,590 | ||||||
OneMain Financial Holdings LLC |
2,030,000 | 2,125,166 | ||||||
5,735,381 | ||||||||
Finance - Credit Card — 0.3% |
| |||||||
Alliance Data Systems Corp. |
1,650,000 | 1,707,750 | ||||||
American Express Credit Corp. |
415,000 | 412,089 | ||||||
American Express Credit Corp. |
589,000 | 584,901 | ||||||
2,704,740 | ||||||||
Finance - Investment Banker/Broker — 0.0% |
| |||||||
Lehman Brothers Holdings, Inc. |
97,000 | 6,257 | ||||||
Lehman Brothers Holdings, Inc. |
111,000 | 11 | ||||||
Lehman Brothers Holdings, Inc. |
143,000 | 14 | ||||||
TD Ameritrade Holding Corp. |
368,000 | 374,242 | ||||||
380,524 | ||||||||
Finance - Leasing Companies — 0.1% |
| |||||||
International Lease Finance Corp. |
391,000 | 441,275 | ||||||
Finance - Mortgage Loan/Banker — 0.3% |
| |||||||
Quicken Loans, Inc. |
2,375,000 | 2,339,375 | ||||||
Finance - Other Services — 0.2% |
| |||||||
CBOE Holdings, Inc. |
458,000 | 463,222 | ||||||
National Rural Utilities Cooperative Finance Corp. |
261,000 | 260,936 | ||||||
National Rural Utilities Cooperative Finance Corp. |
524,000 | 522,231 |
95 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Finance - Other Services (continued) |
| |||||||
National Rural Utilities Cooperative Finance Corp. |
$ | 228,000 | $ | 227,138 | ||||
1,473,527 | ||||||||
Firearms & Ammunition — 0.1% |
| |||||||
FGI Operating Co. LLC/FGI Finance, Inc. |
1,170,000 | 959,400 | ||||||
Food - Flour & Grain — 0.2% |
| |||||||
Post Holdings, Inc. |
1,650,000 | 1,680,937 | ||||||
Food - Meat Products — 0.0% |
| |||||||
Smithfield Foods, Inc. |
173,000 | 176,763 | ||||||
Food - Misc./Diversified — 0.1% |
| |||||||
ConAgra Foods, Inc. |
243,000 | 243,412 | ||||||
Kraft Heinz Foods Co. |
576,000 | 615,650 | ||||||
859,062 | ||||||||
Food - Retail — 0.3% |
| |||||||
Albertsons Cos. LLC/Safeway, Inc. |
1,025,000 | 1,026,922 | ||||||
Albertsons Cos. LLC/Safeway, Inc. |
1,395,000 | 1,478,700 | ||||||
2,505,622 | ||||||||
Food - Wholesale/Distribution — 0.3% |
| |||||||
C&S Group Enterprises LLC |
2,514,000 | 2,482,575 | ||||||
Gambling (Non-Hotel) — 0.8% |
| |||||||
Mohegan Tribal Gaming Authority |
3,402,000 | 3,487,322 | ||||||
Scientific Games International, Inc. |
3,170,000 | 3,364,163 | ||||||
Waterford Gaming LLC/Waterford Gaming Financial Corp. |
272,905 | 3,520 | ||||||
6,855,005 | ||||||||
Gas - Distribution — 0.0% |
| |||||||
Dominion Gas Holdings LLC |
249,000 | 262,497 | ||||||
Hazardous Waste Disposal — 0.1% |
| |||||||
Clean Harbors, Inc. |
1,119,000 | 1,144,178 | ||||||
Home Decoration Products — 0.0% |
| |||||||
Newell Rubbermaid, Inc. |
164,000 | 186,990 | ||||||
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Home Furnishings — 0.2% |
| |||||||
Tempur Sealy International, Inc. |
$ | 1,651,000 | $ | 1,622,107 | ||||
Hotels/Motels — 0.2% |
| |||||||
Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc. |
1,653,000 | 1,743,915 | ||||||
Independent Power Producers — 0.5% |
| |||||||
Calpine Corp. |
1,760,000 | 1,742,400 | ||||||
Dynegy, Inc. |
2,355,000 | 2,237,250 | ||||||
3,979,650 | ||||||||
Industrial Gases — 0.1% |
| |||||||
Airgas, Inc. |
161,000 | 165,631 | ||||||
Praxair, Inc. |
EUR | 700,000 | 775,190 | |||||
940,821 | ||||||||
Insurance Brokers — 0.0% |
| |||||||
Marsh & McLennan Cos., Inc. |
98,000 | 100,074 | ||||||
Insurance - Life/Health — 0.2% |
| |||||||
Aflac, Inc. |
305,000 | 292,593 | ||||||
Jackson National Life Global Funding |
540,000 | 525,671 | ||||||
Pacific LifeCorp |
243,000 | 264,401 | ||||||
Pricoa Global Funding I |
634,000 | 634,177 | ||||||
Unum Group |
179,000 | 201,650 | ||||||
1,918,492 | ||||||||
Insurance - Multi-line — 0.2% |
| |||||||
Assurant, Inc. |
380,000 | 460,221 | ||||||
MetLife, Inc. |
257,000 | 273,332 | ||||||
Metropolitan Life Global Funding I |
760,000 | 767,203 | ||||||
1,500,756 | ||||||||
Insurance - Mutual — 0.3% |
| |||||||
Massachusetts Mutual Life Insurance Co. |
328,000 | 314,092 |
96 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Insurance - Mutual (continued) |
| |||||||
MassMutual Global Funding II |
$ | 946,000 | $ | 956,462 | ||||
MassMutual Global Funding II |
387,000 | 379,356 | ||||||
New York Life Global Funding |
490,000 | 493,779 | ||||||
2,143,689 | ||||||||
Insurance - Reinsurance — 0.1% |
| |||||||
Berkshire Hathaway, Inc. |
EUR | 430,000 | 460,602 | |||||
Berkshire Hathaway, Inc. |
407,000 | 405,000 | ||||||
865,602 | ||||||||
Internet Connectivity Services — 0.3% |
| |||||||
Cogent Communications Group, Inc. |
1,075,000 | 1,118,000 | ||||||
Zayo Group LLC/Zayo Capital, Inc. |
1,540,000 | 1,659,350 | ||||||
2,777,350 | ||||||||
Internet Content - Entertainment — 0.4% |
| |||||||
Netflix, Inc. |
2,761,000 | 2,985,331 | ||||||
Investment Management/Advisor Services — 0.3% |
| |||||||
Drawbridge Special Opportunities Fund LP/Drawbridge Special Opportunities Finance |
2,270,000 | 2,207,575 | ||||||
Machinery - Construction & Mining — 0.2% |
| |||||||
Terex Corp. |
1,551,000 | 1,591,714 | ||||||
Machinery - Farming — 0.1% |
| |||||||
John Deere Capital Corp. |
602,000 | 606,825 | ||||||
Machinery - General Industrial — 0.1% |
| |||||||
Roper Technologies, Inc. |
162,000 | 163,750 | ||||||
Wabtec Corp. |
375,000 | 365,394 | ||||||
529,144 | ||||||||
Marine Services — 0.3% |
| |||||||
Great Lakes Dredge & Dock Corp. |
2,543,000 | 2,536,642 | ||||||
Medical Labs & Testing Services — 0.1% |
| |||||||
Laboratory Corp. of America Holdings |
149,000 | 149,738 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Medical Labs & Testing Services (continued) |
| |||||||
Quest Diagnostics, Inc. |
$ | 304,000 | $ | 301,509 | ||||
Roche Holdings, Inc. |
426,000 | 412,041 | ||||||
863,288 | ||||||||
Medical Products — 0.0% |
| |||||||
Becton Dickinson and Co. |
337,000 | 345,134 | ||||||
Medical - Biomedical/Gene — 0.3% |
| |||||||
Amgen, Inc. |
EUR | 675,000 | 742,404 | |||||
Amgen, Inc. |
EUR | 190,000 | 216,454 | |||||
Amgen, Inc. |
211,000 | 206,904 | ||||||
Baxalta, Inc. |
414,000 | 420,899 | ||||||
Celgene Corp. |
444,000 | 447,740 | ||||||
Gilead Sciences, Inc. |
163,000 | 157,072 | ||||||
2,191,473 | ||||||||
Medical - Drugs — 0.2% |
| |||||||
Forest Laboratories LLC |
560,000 | 605,631 | ||||||
Johnson & Johnson |
715,000 | 713,184 | ||||||
1,318,815 | ||||||||
Medical - HMO — 0.3% |
| |||||||
Centene Corp. |
1,190,000 | 1,224,213 | ||||||
UnitedHealth Group, Inc. |
478,000 | 478,352 | ||||||
UnitedHealth Group, Inc. |
398,000 | 394,858 | ||||||
UnitedHealth Group, Inc. |
289,000 | 300,423 | ||||||
2,397,846 | ||||||||
Medical - Hospitals — 1.6% |
| |||||||
CHS/Community Health Systems, Inc. |
3,110,000 | 2,729,025 | ||||||
HCA, Inc. |
1,639,000 | 1,731,194 |
97 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Medical - Hospitals (continued) |
| |||||||
HCA, Inc. |
$ | 2,632,000 | $ | 2,566,200 | ||||
IASIS Healthcare LLC/IASIS Capital Corp. |
2,390,000 | 2,336,225 | ||||||
RegionalCare Hospital Partners Holdings, Inc. |
1,845,000 | 1,983,375 | ||||||
Tenet Healthcare Corp. |
1,970,000 | 1,994,625 | ||||||
13,340,644 | ||||||||
Metal Processors & Fabrication — 0.5% |
| |||||||
Grinding Media, Inc./MC Grinding Media Canada, Inc. |
1,499,000 | 1,603,930 | ||||||
Novelis Corp. |
1,280,000 | 1,316,800 | ||||||
Novelis Corp. |
1,218,000 | 1,291,080 | ||||||
4,211,810 | ||||||||
Metal - Aluminum — 0.2% |
| |||||||
Kaiser Aluminum Corp. |
1,917,000 | 2,012,850 | ||||||
Metal - Iron — 0.1% |
| |||||||
Cliffs Natural Resources, Inc. |
1,092,000 | 1,071,252 | ||||||
Mining — 0.0% |
| |||||||
Renco Metals, Inc. |
75,000 | 2,250 | ||||||
Multimedia — 0.2% |
| |||||||
Time Warner, Inc. |
332,000 | 328,436 | ||||||
Time Warner, Inc. |
457,000 | 453,604 | ||||||
Viacom, Inc. |
160,000 | 157,105 | ||||||
Viacom, Inc. |
223,000 | 236,818 | ||||||
Walt Disney Co. |
201,000 | 201,770 | ||||||
1,377,733 | ||||||||
Networking Products — 0.2% |
| |||||||
Cisco Systems, Inc. |
518,000 | 519,100 | ||||||
Cisco Systems, Inc. |
1,032,000 | 1,043,855 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Networking Products (continued) |
| |||||||
Cisco Systems, Inc. |
$ | 443,000 | $ | 443,905 | ||||
2,006,860 | ||||||||
Office Automation & Equipment — 0.2% |
| |||||||
CDW LLC/CDW Finance Corp. |
1,645,000 | 1,668,655 | ||||||
Pitney Bowes, Inc. |
53,000 | 52,011 | ||||||
1,720,666 | ||||||||
Oil Companies - Exploration & Production — 2.6% |
| |||||||
Anadarko Petroleum Corp. |
745,000 | 902,588 | ||||||
Carrizo Oil & Gas, Inc. |
1,600,000 | 1,620,000 | ||||||
Chesapeake Energy Corp. |
2,235,000 | 2,218,237 | ||||||
Concho Resources, Inc. |
485,000 | 492,275 | ||||||
Denbury Resources, Inc. |
1,205,000 | 994,125 | ||||||
Denbury Resources, Inc. |
2,850,000 | 3,070,875 | ||||||
EP Energy LLC/Everest Acquisition Finance, Inc. |
700,000 | 742,000 | ||||||
Hess Corp. |
293,000 | 293,085 | ||||||
Hess Corp. |
566,000 | 580,613 | ||||||
Hilcorp Energy I LP/Hilcorp Finance Co. |
1,589,000 | 1,521,467 | ||||||
Hilcorp Energy I LP/Hilcorp Finance Co. |
86,000 | 85,355 | ||||||
Marathon Oil Corp. |
177,000 | 177,752 | ||||||
Newfield Exploration Co. |
1,588,000 | 1,655,490 | ||||||
Noble Energy, Inc. |
513,000 | 524,439 | ||||||
Noble Energy, Inc. |
301,000 | 313,136 | ||||||
Occidental Petroleum Corp. |
140,000 | 143,380 | ||||||
Rex Energy Corp. |
1,134,445 | 680,667 |
98 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Oil Companies-Exploration & Production (continued) |
| |||||||
RSP Permian, Inc. |
$ | 1,500,000 | $ | 1,537,500 | ||||
Sanchez Energy Corp. |
955,000 | 916,800 | ||||||
SM Energy Co. |
899,000 | 850,679 | ||||||
SM Energy Co. |
297,000 | 297,743 | ||||||
WPX Energy, Inc. |
1,850,000 | 1,993,375 | ||||||
21,611,581 | ||||||||
Oil Companies - Integrated — 0.2% |
| |||||||
Chevron Corp. |
597,000 | 597,032 | ||||||
Chevron Corp. |
329,000 | 329,328 | ||||||
Chevron Corp. |
362,000 | 362,000 | ||||||
Exxon Mobil Corp. |
333,000 | 333,116 | ||||||
1,621,476 | ||||||||
Oil Field Machinery & Equipment — 0.2% |
| |||||||
Forum Energy Technologies, Inc. |
1,399,000 | 1,405,995 | ||||||
Oil Refining & Marketing — 0.2% |
| |||||||
PBF Holding Co. LLC/PBF Finance Corp. |
2,020,000 | 2,030,100 | ||||||
Oil - Field Services — 0.5% |
| |||||||
Bristow Group, Inc. |
2,708,000 | 2,349,190 | ||||||
SESI LLC |
1,396,000 | 1,434,390 | ||||||
3,783,580 | ||||||||
Paper & Related Products — 0.6% |
| |||||||
Domtar Corp. |
700,000 | 748,970 | ||||||
Georgia-Pacific LLC |
1,152,000 | 1,178,040 | ||||||
Georgia-Pacific LLC |
1,253,000 | 1,301,342 | ||||||
Georgia-Pacific LLC |
357,000 | 392,375 | ||||||
International Paper Co. |
199,000 | 192,128 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Paper & Related Products (continued) |
| |||||||
PH Glatfelter Co. |
$ | 1,247,000 | $ | 1,271,940 | ||||
5,084,795 | ||||||||
Pharmacy Services — 0.1% |
| |||||||
Express Scripts Holding Co. |
215,000 | 208,931 | ||||||
Express Scripts Holding Co. |
308,000 | 299,875 | ||||||
508,806 | ||||||||
Pipelines — 2.7% |
| |||||||
Antero Midstream Partners LP/Antero Midstream Finance Corp. |
1,279,000 | 1,298,185 | ||||||
Cheniere Corpus Christi Holdings LLC |
2,655,000 | 2,973,600 | ||||||
Colorado Interstate Gas Co. LLC/Colorado Interstate Issuing Corp. |
376,000 | 367,390 | ||||||
Columbia Pipeline Group, Inc. |
115,000 | 115,627 | ||||||
Energy Transfer Partners LP |
186,000 | 180,710 | ||||||
Energy Transfer Partners LP |
45,000 | 48,390 | ||||||
Energy Transfer Partners LP |
837,000 | 958,531 | ||||||
EnLink Midstream Partners LP |
178,000 | 181,057 | ||||||
EnLink Midstream Partners LP |
382,000 | 400,487 | ||||||
EnLink Midstream Partners LP |
463,000 | 441,380 | ||||||
Enterprise Products Operating LLC |
239,000 | 246,015 | ||||||
Enterprise Products Operating LLC |
150,000 | 155,420 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. |
2,287,000 | 2,281,282 | ||||||
Genesis Energy LP/Genesis Energy Finance Corp. |
933,000 | 944,662 | ||||||
Holly Energy Partners LP/Holly Energy Finance Corp. |
1,407,000 | 1,477,350 | ||||||
Kinder Morgan Energy Partners LP |
326,000 | 324,713 |
99 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Pipelines (continued) |
| |||||||
Kinder Morgan Energy Partners LP |
$ | 216,000 | $ | 202,999 | ||||
Kinder Morgan Energy Partners LP |
176,000 | 180,047 | ||||||
Kinder Morgan, Inc. |
402,000 | 432,380 | ||||||
Kinder Morgan, Inc. |
151,000 | 159,339 | ||||||
MPLX LP |
313,000 | 314,973 | ||||||
MPLX LP |
171,000 | 174,052 | ||||||
Phillips 66 Partners LP |
190,000 | 186,925 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. |
183,000 | 178,685 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. |
219,000 | 221,336 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. |
279,000 | 286,891 | ||||||
Rose Rock Midstream LP/Rose Rock Finance Corp. |
1,754,000 | 1,723,305 | ||||||
Spectra Energy Partners LP |
223,000 | 215,084 | ||||||
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. |
1,678,000 | 1,698,975 | ||||||
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. |
1,500,000 | 1,515,000 | ||||||
Tesoro Logistics LP/Tesoro Logistics Finance Corp. |
783,000 | 807,077 | ||||||
Tesoro Logistics LP/Tesoro Logistics Finance Corp. |
1,440,000 | 1,503,000 | ||||||
Western Gas Partners LP |
408,000 | 426,777 | ||||||
22,621,644 | ||||||||
Power Converter/Supply Equipment — 0.0% |
| |||||||
Hubbell, Inc. |
355,000 | 354,748 | ||||||
Printing - Commercial — 0.2% |
| |||||||
Quad/Graphics, Inc. |
1,909,000 | 1,904,227 | ||||||
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Radio — 0.1% |
| |||||||
Sirius XM Radio, Inc. |
$ | 1,113,000 | $ | 1,135,260 | ||||
Real Estate Investment Trusts — 1.1% |
| |||||||
American Tower Corp. |
479,000 | 447,413 | ||||||
American Tower Corp. |
258,000 | 246,665 | ||||||
Columbia Property Trust Operating Partnership LP |
152,000 | 147,193 | ||||||
Corrections Corp. of America |
587,000 | 598,740 | ||||||
CTR Partnership LP/CareTrust Capital Corp. |
1,825,000 | 1,875,188 | ||||||
ESH Hospitality, Inc. |
999,000 | 1,007,741 | ||||||
Iron Mountain US Holdings, Inc. |
314,000 | 312,430 | ||||||
iStar, Inc. |
1,210,000 | 1,273,525 | ||||||
Realty Income Corp. |
137,000 | 130,274 | ||||||
Simon Property Group LP |
289,000 | 288,606 | ||||||
Starwood Property Trust, Inc. |
2,811,000 | 2,919,926 | ||||||
9,247,701 | ||||||||
Real Estate Management/Services — 0.5% |
| |||||||
Kennedy-Wilson, Inc. |
2,626,000 | 2,737,605 | ||||||
Realogy Group LLC/Realogy Co-Issuer Corp. |
1,320,000 | 1,300,200 | ||||||
4,037,805 | ||||||||
Rental Auto/Equipment — 0.5% |
| |||||||
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. |
1,590,000 | 1,522,425 | ||||||
ERAC USA Finance LLC |
672,000 | 627,251 | ||||||
Hertz Corp. |
1,971,000 | 1,778,827 | ||||||
3,928,503 | ||||||||
Retail - Appliances — 0.4% |
| |||||||
Conn’s, Inc. |
3,674,000 | 3,205,565 | ||||||
100 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Retail - Building Products — 0.0% |
| |||||||
Home Depot, Inc. |
$ | 34,000 | $ | 33,908 | ||||
Home Depot, Inc. |
219,000 | 195,572 | ||||||
229,480 | ||||||||
Retail - Discount — 0.1% |
| |||||||
Costco Wholesale Corp. |
618,000 | 615,417 | ||||||
Retail - Drug Store — 0.1% |
| |||||||
CVS Pass-Through Trust |
282,395 | 296,906 | ||||||
CVS Pass-Through Trust |
180,184 | 204,269 | ||||||
CVS Pass-Through Trust |
385,682 | 445,596 | ||||||
946,771 | ||||||||
Retail - Restaurants — 0.2% |
| |||||||
Brinker International, Inc. |
1,600,000 | 1,572,000 | ||||||
McDonald’s Corp. |
67,000 | 71,129 | ||||||
1,643,129 | ||||||||
Rubber/Plastic Products — 0.0% |
| |||||||
Venture Holdings Co. LLC |
25,000 | 0 | ||||||
Satellite Telecom — 0.2% |
| |||||||
Hughes Satellite Systems Corp. |
1,514,000 | 1,678,647 | ||||||
Savings & Loans/Thrifts — 0.6% |
| |||||||
Astoria Financial Corp. |
638,000 | 642,167 | ||||||
First Niagara Financial Group, Inc. |
2,196,000 | 2,478,133 | ||||||
First Niagara Financial Group, Inc. |
1,358,000 | 1,603,586 | ||||||
4,723,886 | ||||||||
Soap & Cleaning Preparation — 0.2% |
| |||||||
Kronos Acquisition Holdings, Inc. |
1,560,000 | 1,593,150 | ||||||
Steel - Producers — 0.2% |
| |||||||
AK Steel Corp. |
1,595,000 | 1,742,537 | ||||||
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Telecom Services — 0.2% |
| |||||||
Embarq Corp. |
$ | 1,430,000 | $ | 1,434,692 | ||||
Telecommunication Equipment — 0.2% |
| |||||||
Plantronics, Inc. |
1,771,000 | 1,802,896 | ||||||
Telephone - Integrated — 1.1% |
| |||||||
AT&T, Inc. |
1,018,000 | 1,011,496 | ||||||
AT&T, Inc. |
560,000 | 496,757 | ||||||
AT&T, Inc. |
704,000 | 667,727 | ||||||
AT&T, Inc. |
438,000 | 409,585 | ||||||
AT&T, Inc. |
343,000 | 353,863 | ||||||
AT&T, Inc. |
247,000 | 265,293 | ||||||
Sprint Capital Corp. |
3,360,000 | 4,032,000 | ||||||
Verizon Communications, Inc. |
610,000 | 615,672 | ||||||
Verizon Communications, Inc. |
250,000 | 240,001 | ||||||
Verizon Communications, Inc. |
1,059,000 | 964,114 | ||||||
Verizon Communications, Inc. |
62,000 | 60,465 | ||||||
9,116,973 | ||||||||
Television — 0.1% |
| |||||||
Belo Corp. |
515,000 | 560,063 | ||||||
Tools - Hand Held — 0.0% |
| |||||||
Snap-on, Inc. |
215,000 | 217,840 | ||||||
Transport - Equipment & Leasing — 0.1% |
| |||||||
GATX Corp. |
200,000 | 191,127 | ||||||
GATX Corp. |
323,000 | 322,742 | ||||||
513,869 | ||||||||
Transport - Rail — 0.0% |
| |||||||
Burlington Northern Santa Fe LLC |
203,000 | 200,096 |
101 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. CORPORATE BONDS & NOTES (continued) |
| |||||||
Transport - Rail (continued) |
| |||||||
CSX Corp. |
$ | 227,000 | $ | 208,902 | ||||
408,998 | ||||||||
Transport - Services — 0.0% |
| |||||||
FedEx Corp. |
229,000 | 228,100 | ||||||
Travel Services — 0.2% |
| |||||||
Sabre GLBL, Inc. |
1,400,000 | 1,424,500 | ||||||
Trucking/Leasing — 0.0% |
| |||||||
Penske Truck Leasing Co. LP/PTL Finance Corp. |
213,000 | 216,989 | ||||||
Wire & Cable Products — 0.2% |
| |||||||
General Cable Corp. |
1,707,000 | 1,672,860 | ||||||
Total U.S. Corporate Bonds & Notes |
||||||||
(cost $368,212,465) |
378,203,913 | |||||||
FOREIGN CORPORATE BONDS & NOTES — 18.2% |
| |||||||
Aerospace/Defense — 0.1% |
||||||||
BAE Systems PLC |
GBP | 350,000 | 491,927 | |||||
Embraer Netherlands Finance BV |
140,000 | 145,040 | ||||||
636,967 | ||||||||
Agricultural Chemicals — 0.0% |
| |||||||
Potash Corp. of Saskatchewan, Inc. |
211,000 | 214,674 | ||||||
Airlines — 0.0% |
| |||||||
Latam Airlines Group SA* |
300,000 | 316,500 | ||||||
Airport Development/Maintenance — 0.2% |
| |||||||
Heathrow Funding, Ltd. |
EUR | 1,300,000 | 1,481,709 | |||||
Heathrow Funding, Ltd. |
GBP | 225,000 | 386,545 | |||||
1,868,254 | ||||||||
Appliances — 0.0% |
| |||||||
Arcelik AS |
250,000 | 246,690 | ||||||
Auto - Cars/Light Trucks — 0.4% |
| |||||||
Daimler AG |
GBP | 475,000 | 627,838 | |||||
FCE Bank PLC |
EUR | 600,000 | 662,229 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Auto - Cars/Light Trucks (continued) |
| |||||||
FCE Bank PLC |
EUR | 600,000 | $ | 659,791 | ||||
RCI Banque SA |
EUR | 800,000 | 904,407 | |||||
Volkswagen International Finance NV |
151,000 | 151,086 | ||||||
3,005,351 | ||||||||
Banks - Commercial — 2.4% |
| |||||||
ADCB Finance Cayman, Ltd. |
325,000 | 336,375 | ||||||
Australia & New Zealand Banking Group, Ltd. |
360,000 | 356,782 | ||||||
Banco de Credito del Peru/Panama |
450,000 | 489,375 | ||||||
Banco Macro SA VRS |
330,000 | 331,617 | ||||||
Bangkok Bank PCL |
350,000 | 363,780 | ||||||
Bank of China, Ltd. |
275,000 | 292,936 | ||||||
Bank of Montreal |
256,000 | 256,637 | ||||||
Barclays Bank PLC |
EUR | 800,000 | 1,056,990 | |||||
BPCE SA VRS |
EUR | 1,000,000 | 1,084,518 | |||||
BPCE SA |
EUR | 600,000 | 725,117 | |||||
Cooperatieve Rabobank UA |
GBP | 250,000 | 387,801 | |||||
Credit Suisse AG |
262,000 | 261,969 | ||||||
Credit Suisse AG |
395,000 | 399,358 | ||||||
Credit Suisse AG VRS |
EUR | 700,000 | 825,810 | |||||
Danske Bank A/S VRS |
EUR | 625,000 | 699,827 | |||||
DBS Group Holdings, Ltd. |
798,000 | 801,222 | ||||||
Dexia Credit Local SA |
485,000 | 483,711 | ||||||
HBOS PLC |
EUR | 1,400,000 | 1,753,131 |
102 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Banks - Commercial (continued) |
| |||||||
HSBC Bank PLC VRS |
GBP | 875,000 | $ | 1,124,953 | ||||
ICICI Bank, Ltd. |
350,000 | 385,305 | ||||||
ING Bank NV VRS |
EUR | 700,000 | 779,615 | |||||
Intesa Sanpaolo SpA |
EUR | 900,000 | 969,005 | |||||
Mizuho Bank, Ltd. |
314,000 | 314,667 | ||||||
Mizuho Bank, Ltd. |
385,000 | 387,193 | ||||||
National Bank of Canada |
474,000 | 476,087 | ||||||
Shinhan Bank |
200,000 | 201,472 | ||||||
Standard Chartered PLC |
EUR | 1,050,000 | 1,174,360 | |||||
Sumitomo Mitsui Banking Corp. |
1,309,000 | 1,308,512 | ||||||
Toronto-Dominion Bank |
583,000 | 568,985 | ||||||
Turkiye Is Bankasi AS |
200,000 | 198,316 | ||||||
Union National Bank PJSC |
340,000 | 332,872 | ||||||
Westpac Banking Corp. VRS |
292,000 | 294,804 | ||||||
19,423,102 | ||||||||
Banks - Money Center — 0.3% |
||||||||
ABN AMRO Bank NV |
EUR | 475,000 | 571,088 | |||||
ABN AMRO Bank NV |
EUR | 800,000 | 1,086,254 | |||||
Lloyds Bank PLC |
GBP | 635,000 | 1,082,470 | |||||
2,739,812 | ||||||||
Banks - Special Purpose — 0.2% |
||||||||
Development Bank of Kazakhstan |
425,000 | 420,422 | ||||||
Nederlandse Waterschapsbank NV |
EUR | 1,000,000 | 1,090,075 | |||||
1,510,497 | ||||||||
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Beverages - Non-alcoholic — 0.1% |
||||||||
Coca-Cola Femsa SAB de CV |
$ | 856,000 | $ | 863,515 | ||||
Beverages - Wine/Spirits — 0.1% |
||||||||
Diageo Capital PLC |
657,000 | 675,332 | ||||||
Brewery — 0.2% |
||||||||
Anheuser-Busch InBev SA/NV |
EUR | 780,000 | 893,265 | |||||
Anheuser-Busch InBev SA/NV/old |
EUR | 380,000 | 435,180 | |||||
1,328,445 | ||||||||
Building Products - Air & Heating — 0.0% |
||||||||
Johnson Controls International PLC |
131,000 | 134,791 | ||||||
Building Products - Cement — 0.0% |
||||||||
St Marys Cement, Inc. |
350,000 | 355,250 | ||||||
Building Societies — 0.0% |
||||||||
Nationwide Building Society |
265,000 | 255,233 | ||||||
Building - Residential/Commercial — 0.3% |
||||||||
Mattamy Group Corp. |
1,650,000 | 1,695,375 | ||||||
Mattamy Group Corp. |
770,000 | 804,650 | ||||||
2,500,025 | ||||||||
Cable/Satellite TV — 1.6% |
||||||||
Altice Financing SA |
3,080,000 | 3,307,150 | ||||||
Altice Luxembourg SA |
3,040,000 | 3,237,600 | ||||||
Numericable-SFR SA |
4,767,000 | 4,939,804 | ||||||
Ziggo Secured Finance BV |
1,625,000 | 1,645,312 | ||||||
13,129,866 | ||||||||
Cellular Telecom — 0.1% |
||||||||
Empresa Nacional de Telecomunicaciones SA |
350,000 | 362,013 | ||||||
GTH Finance BV |
225,000 | 248,062 | ||||||
VimpelCom Holdings BV |
200,000 | 210,202 | ||||||
820,277 | ||||||||
103 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
| |||||||
Chemicals - Diversified — 0.2% |
||||||||
Israel Chemicals, Ltd. |
$ | 310,000 | $ | 310,468 | ||||
LYB International Finance II BV |
443,000 | 440,895 | ||||||
NOVA Chemicals Corp. |
880,000 | 891,000 | ||||||
1,642,363 | ||||||||
Computers - Memory Devices — 0.3% |
||||||||
Seagate HDD Cayman |
425,000 | 420,366 | ||||||
Seagate HDD Cayman |
1,690,000 | 1,635,033 | ||||||
2,055,399 | ||||||||
Cruise Lines — 0.7% |
||||||||
NCL Corp., Ltd. |
1,465,000 | 1,494,300 | ||||||
Royal Caribbean Cruises, Ltd. |
778,000 | 871,127 | ||||||
Royal Caribbean Cruises, Ltd. |
1,110,000 | 1,368,075 | ||||||
Silversea Cruise Finance, Ltd. |
1,650,000 | 1,720,125 | ||||||
5,453,627 | ||||||||
Diversified Banking Institutions — 1.4% |
| |||||||
Barclays PLC |
329,000 | 334,865 | ||||||
BNP Paribas SA |
EUR | 875,000 | 1,049,475 | |||||
BNP Paribas SA |
671,000 | 666,779 | ||||||
Credit Agricole SA |
EUR | 750,000 | 902,011 | |||||
Credit Agricole SA |
485,000 | 479,883 | ||||||
Credit Agricole SA |
GBP | 600,000 | 894,075 | |||||
Credit Suisse Group AG |
997,000 | 1,000,601 | ||||||
HSBC Holdings PLC |
492,000 | 485,257 | ||||||
HSBC Holdings PLC |
224,000 | 227,286 | ||||||
HSBC Holdings PLC |
231,000 | 233,833 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Diversified Banking Institutions (continued) |
| |||||||
Lloyds Banking Group PLC |
$ | 652,000 | $ | 663,927 | ||||
Mitsubishi UFJ Financial Group, Inc. |
586,000 | 592,315 | ||||||
Mizuho Financial Group, Inc. |
396,000 | 387,141 | ||||||
Royal Bank of Scotland Group PLC |
201,000 | 198,515 | ||||||
Royal Bank of Scotland PLC VRS |
EUR | 1,965,000 | 2,090,130 | |||||
UBS AG VRS |
EUR | 1,400,000 | 1,626,557 | |||||
11,832,650 | ||||||||
Diversified Financial Services — 0.2% |
| |||||||
GE Capital International Funding Co. ULC |
1,484,000 | 1,589,492 | ||||||
Diversified Manufacturing Operations — 0.0% |
| |||||||
Ingersoll-Rand Luxembourg Finance SA |
234,000 | 243,086 | ||||||
E-Commerce/Products — 0.1% |
| |||||||
Alibaba Group Holding, Ltd. |
500,000 | 506,181 | ||||||
Electric - Distribution — 0.0% |
| |||||||
State Grid Overseas Investment 2014, Ltd.* |
300,000 | 318,525 | ||||||
Electric - Generation — 0.1% |
| |||||||
Abu Dhabi National Energy Co. PJSC |
200,000 | 205,313 | ||||||
Comision Federal de Electricidad |
200,000 | 196,800 | ||||||
Electricite de France SA |
553,000 | 550,259 | ||||||
Electricite de France SA |
54,000 | 54,570 | ||||||
1,006,942 | ||||||||
Electric - Integrated — 0.5% |
| |||||||
Enel Finance International NV |
EUR | 900,000 | 1,184,317 | |||||
Enel Finance International NV |
GBP | 225,000 | 341,205 | |||||
GDF Suez |
EUR | 1,400,000 | 1,660,020 | |||||
Iberdrola International BV |
EUR | 800,000 | 940,249 | |||||
4,125,791 | ||||||||
104 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
||||||||
Energy - Alternate Sources — 0.0% |
| |||||||
Genneia SA |
$ | 325,000 | $ | 338,488 | ||||
Finance - Leasing Companies — 0.7% |
| |||||||
Aircastle, Ltd. |
2,785,000 | 2,934,694 | ||||||
Fly Leasing, Ltd. |
2,320,000 | 2,412,800 | ||||||
5,347,494 | ||||||||
Food - Meat Products — 0.1% |
| |||||||
BRF SA |
BRL | 1,000,000 | 305,850 | |||||
Minerva Luxembourg SA |
200,000 | 198,500 | ||||||
504,350 | ||||||||
Food - Misc./Diversified — 0.0% |
| |||||||
BRF GmbH |
200,000 | 190,500 | ||||||
Food - Retail — 0.3% |
| |||||||
Casino Guichard-Perrachon SA |
EUR | 1,400,000 | 1,747,351 | |||||
Cencosud SA |
300,000 | 314,371 | ||||||
2,061,722 | ||||||||
Gas - Distribution — 0.0% |
| |||||||
Gas Natural Capital Markets SA |
EUR | 200,000 | 258,585 | |||||
Gas - Transportation — 0.0% |
| |||||||
Transportadora de Gas del Peru SA |
320,000 | 321,040 | ||||||
Gold Mining — 0.0% |
| |||||||
Goldcorp, Inc. |
229,000 | 248,521 | ||||||
Hazardous Waste Disposal — 0.3% |
| |||||||
Tervita Escrow Corp. |
2,215,000 | 2,314,675 | ||||||
Insurance - Life/Health — 0.1% |
| |||||||
AIA Group, Ltd. |
258,000 | 262,524 | ||||||
Manulife Financial Corp. VRS |
501,000 | 503,942 | ||||||
766,466 | ||||||||
Insurance - Multi-line — 0.2% |
| |||||||
Willow No 2 Ireland PLC for Zurich Insurance Co., Ltd. |
EUR | 500,000 | 612,296 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Insurance - Multi-line (continued) |
| |||||||
XLIT, Ltd. |
$ | 264,000 | $ | 267,422 | ||||
XLIT, Ltd. |
465,000 | 465,481 | ||||||
1,345,199 | ||||||||
Investment Companies — 0.0% |
| |||||||
Huarong Finance II Co., Ltd. |
350,000 | 346,699 | ||||||
Investment Management/Advisor Services — 0.1% |
| |||||||
China Cinda Finance 2015 I, Ltd. |
600,000 | 600,692 | ||||||
Machinery - General Industrial — 0.2% |
| |||||||
ATS Automation Tooling Systems, Inc. |
1,244,000 | 1,299,980 | ||||||
Medical - Drugs — 0.0% |
| |||||||
Teva Pharmaceutical Finance Netherlands III BV |
403,000 | 382,473 | ||||||
Medical - Generic Drugs — 0.1% |
| |||||||
Actavis Funding SCS |
522,000 | 531,715 | ||||||
Metal Processors & Fabrication — 0.0% |
||||||||
Elementia SAB de CV |
325,000 | 319,313 | ||||||
Metal - Copper — 0.6% |
| |||||||
First Quantum Minerals, Ltd. |
2,794,000 | 2,888,297 | ||||||
Hudbay Minerals, Inc. |
1,907,000 | 2,083,398 | ||||||
4,971,695 | ||||||||
Metal - Diversified — 0.3% |
| |||||||
Glencore Canada Financial Corp. |
GBP | 400,000 | 581,710 | |||||
Glencore Finance Europe SA |
EUR | 750,000 | 897,938 | |||||
Glencore Finance Europe SA |
GBP | 700,000 | 1,009,716 | |||||
Vedanta Resources PLC |
330,000 | 338,085 | ||||||
2,827,449 | ||||||||
Metal - Iron — 0.1% |
| |||||||
NLMK Group |
350,000 | 355,250 | ||||||
Vale Overseas, Ltd. |
264,000 | 291,390 | ||||||
646,640 | ||||||||
105 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
||||||||
Oil & Gas Drilling — 0.1% |
| |||||||
Pacific Drilling SA |
$ | 1,472,000 | $ | 680,800 | ||||
Oil Companies - Exploration & Production — 0.6% |
| |||||||
Anadarko Finance Co. |
514,000 | 659,868 | ||||||
Empresa Nacional del Petroleo |
400,000 | 389,704 | ||||||
MEG Energy Corp. |
2,375,000 | 2,107,812 | ||||||
MEG Energy Corp. |
1,190,000 | 1,163,225 | ||||||
Novatek OAO via Novatek Finance, Ltd. |
350,000 | 384,563 | ||||||
Tengizchevroil Finance Co. International, Ltd. |
500,000 | 479,625 | ||||||
5,184,797 | ||||||||
Oil Companies - Integrated — 1.0% |
| |||||||
BP Capital Markets PLC |
1,070,000 | 1,071,000 | ||||||
BP Capital Markets PLC |
353,000 | 351,601 | ||||||
BP Capital Markets PLC |
328,000 | 335,459 | ||||||
Ecopetrol SA |
300,000 | 290,850 | ||||||
Ecopetrol SA |
325,000 | 352,625 | ||||||
Lukoil International Finance BV |
350,000 | 357,000 | ||||||
Lukoil International Finance BV |
330,000 | 333,135 | ||||||
Pertamina Persero PT |
600,000 | 633,978 | ||||||
Petrobras Global Finance BV |
330,000 | 345,180 | ||||||
Petrobras Global Finance BV |
320,000 | 363,040 | ||||||
Petroleos Mexicanos |
108,000 | 92,880 | ||||||
Petroleos Mexicanos |
1,189,000 | 1,177,110 | ||||||
Petronas Capital, Ltd. |
500,000 | 511,790 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Oil Companies - Integrated (continued) |
| |||||||
Sasol Financing International PLC |
$ | 300,000 | $ | 303,900 | ||||
Shell International Finance BV |
386,000 | 386,137 | ||||||
Shell International Finance BV |
422,000 | 423,355 | ||||||
Shell International Finance BV |
446,000 | 447,585 | ||||||
Total Capital International SA |
GBP | 310,000 | 406,361 | |||||
8,182,986 | ||||||||
Oil Refining & Marketing — 0.2% |
||||||||
Cosan Luxembourg SA |
310,000 | 325,128 | ||||||
Raizen Fuels Finance SA |
200,000 | 204,500 | ||||||
Reliance Industries, Ltd. |
500,000 | 510,747 | ||||||
Thai Oil PCL |
200,000 | 202,823 | ||||||
Ultrapar International SA |
200,000 | 201,020 | ||||||
1,444,218 | ||||||||
Oil - Field Services — 0.1% |
||||||||
Trinidad Drilling, Ltd. |
1,143,000 | 1,177,290 | ||||||
Paper & Related Products — 0.4% |
| |||||||
Cascades, Inc. |
800,000 | 812,000 | ||||||
Cascades, Inc. |
1,703,000 | 1,737,060 | ||||||
Fibria Overseas Finance, Ltd. |
250,000 | 256,250 | ||||||
Inversiones CMPC SA |
250,000 | 254,474 | ||||||
Klabin Finance SA |
200,000 | 201,500 | ||||||
Suzano Austria GmbH |
400,000 | 412,240 | ||||||
3,673,524 | ||||||||
Petrochemicals — 0.1% |
| |||||||
Alpek SAB de CV |
350,000 | 365,750 |
106 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
FOREIGN CORPORATE BONDS & NOTES (continued) |
||||||||
Petrochemicals (continued) |
| |||||||
Equate Petrochemical BV |
$ | 340,000 | $ | 339,166 | ||||
704,916 | ||||||||
Pipelines — 0.2% |
| |||||||
Enbridge, Inc. |
291,000 | 314,339 | ||||||
Southern Gas Corridor CJSC |
1,000,000 | 1,101,500 | ||||||
1,415,839 | ||||||||
Printing - Commercial — 0.4% |
| |||||||
Cimpress NV |
3,100,000 | 3,208,500 | ||||||
Real Estate Investment Trusts — 0.0% |
| |||||||
Trust F/1401 |
200,000 | 199,200 | ||||||
Retail - Major Department Stores — 0.0% |
| |||||||
El Puerto de Liverpool SAB de CV |
200,000 | 187,250 | ||||||
Satellite Telecom — 0.9% |
| |||||||
Intelsat Jackson Holdings SA |
4,630,000 | 3,808,175 | ||||||
Telesat Canada/Telesat LLC |
3,080,000 | 3,364,900 | ||||||
7,173,075 | ||||||||
Security Services — 0.3% |
| |||||||
Garda World Security Corp. |
2,485,000 | 2,379,387 | ||||||
Semiconductor Components - Integrated Circuits — 0.1% |
| |||||||
NXP BV/NXP Funding LLC |
825,000 | 878,625 | ||||||
Semiconductor Equipment — 0.2% |
| |||||||
Sensata Technologies BV |
1,470,000 | 1,492,050 | ||||||
Sovereign Agency — 0.2% |
| |||||||
European Stability Mechanism |
EUR | 1,750,000 | 1,920,784 | |||||
Special Purpose Entity — 0.0% |
| |||||||
Hellas Telecommunications Luxembourg II SCA FRS |
560,000 | 0 | ||||||
Steel - Producers — 0.3% |
| |||||||
ArcelorMittal |
1,965,000 | 2,208,169 | ||||||
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
SupraNational Banks — 0.1% |
| |||||||
North American Development Bank |
$ | 561,000 | $ | 568,466 | ||||
Telecom Services — 0.0% |
| |||||||
Bharti Airtel International Netherlands BV |
300,000 | 318,463 | ||||||
Telephone - Integrated — 0.3% |
| |||||||
Deutsche Telekom International Finance BV |
496,000 | 474,713 | ||||||
Koninklijke KPN NV |
GBP | 450,000 | 717,682 | |||||
Oi SA |
BRL | 530,000 | 35,776 | |||||
Ooredoo International Finance, Ltd. |
330,000 | 327,971 | ||||||
Telecom Italia Capital SA |
581,000 | 642,731 | ||||||
2,198,873 | ||||||||
Transport - Marine — 0.1% |
| |||||||
PT Pelabuhan Indonesia II* |
475,000 | 473,993 | ||||||
Transport - Rail — 0.0% |
| |||||||
Canadian Pacific Railway Co. |
283,000 | 341,820 | ||||||
Transport - Services — 0.0% |
| |||||||
Transnet SOC, Ltd. |
250,000 | 244,996 | ||||||
Total Foreign Corporate Bonds & Notes |
| |||||||
(cost $151,397,781) |
150,680,354 | |||||||
FOREIGN GOVERNMENT OBLIGATIONS — 8.9% |
| |||||||
Electric - Distribution — 0.1% |
| |||||||
Hydro-Quebec |
442,000 | 442,143 | ||||||
Sovereign — 8.5% |
| |||||||
Dominican Republic |
495,000 | 517,686 | ||||||
Dominican Republic |
1,700,000 | 1,751,000 | ||||||
Dominican Republic |
400,000 | 439,188 | ||||||
Dominican Republic |
600,000 | 703,962 | ||||||
Federal Republic of Germany |
EUR | 3,200,000 | 3,347,082 |
107 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
FOREIGN GOVERNMENT OBLIGATIONS (continued) |
||||||||
Sovereign (continued) |
| |||||||
Federal Republic of Germany |
EUR | 420,000 | $ | 615,260 | ||||
Federal Republic of Germany |
EUR | 1,370,000 | 2,522,495 | |||||
Federative Republic of Brazil |
1,100,000 | 1,190,750 | ||||||
Government of Egypt |
850,000 | 879,002 | ||||||
Government of Egypt |
750,000 | 779,063 | ||||||
Government of Egypt |
450,000 | 424,935 | ||||||
Government of Finland |
EUR | 285,000 | 404,345 | |||||
Government of Jamaica |
400,000 | 448,084 | ||||||
Government of Jamaica |
1,400,000 | 1,617,000 | ||||||
Government of Romania |
380,000 | 459,762 | ||||||
Government of Ukraine |
1,200,000 | 1,176,720 | ||||||
Government of Ukraine |
1,050,000 | 1,005,375 | ||||||
Kingdom of Bahrain |
318,000 | 332,087 | ||||||
Kingdom of Belgium |
EUR | 200,000 | 316,008 | |||||
Kingdom of Belgium |
EUR | 560,000 | 967,905 | |||||
Kingdom of Jordan |
1,900,000 | 1,840,435 | ||||||
Kingdom of Morocco |
420,000 | 441,288 | ||||||
Lebanon Government International Bond |
850,000 | 849,371 | ||||||
Republic of Argentina |
1,600,000 | 1,616,000 | ||||||
Republic of Argentina |
600,000 | 604,200 | ||||||
Republic of Argentina |
330,000 | 332,310 | ||||||
Republic of Argentina |
771,121 | 823,172 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Sovereign (continued) |
| |||||||
Republic of Azerbaijan |
$ 800,000 | $ | 812,848 | |||||
Republic of Chile |
800,000 | 812,400 | ||||||
Republic of Costa Rica |
700,000 | 696,101 | ||||||
Republic of Ecuador |
1,650,000 | 1,780,680 | ||||||
Republic of El Salvador |
691,000 | 696,183 | ||||||
Republic of Ghana |
1,790,000 | 1,736,873 | ||||||
Republic of Guatemala |
500,000 | 544,240 | ||||||
Republic of Indonesia |
200,000 | 205,011 | ||||||
Republic of Indonesia |
200,000 | 227,144 | ||||||
Republic of Ivory Coast |
600,000 | 579,733 | ||||||
Republic of Ivory Coast |
300,000 | 297,765 | ||||||
Republic of Kenya |
1,650,000 | 1,623,204 | ||||||
Republic of Lebanon |
113,300 | 112,881 | ||||||
Republic of Lebanon |
780,000 | 786,349 | ||||||
Republic of Lebanon |
1,250,000 | 1,249,075 | ||||||
Republic of Lebanon |
340,000 | 373,319 | ||||||
Republic of Lithuania |
1,000,000 | 1,172,272 | ||||||
Republic of Lithuania |
1,275,000 | 1,448,976 | ||||||
Republic of Namibia |
1,200,000 | 1,220,700 | ||||||
Republic of Panama |
500,000 | 515,000 | ||||||
Republic of Panama |
750,000 | 811,875 | ||||||
Republic of Paraguay |
1,270,000 | 1,314,450 |
108 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
FOREIGN GOVERNMENT OBLIGATIONS (continued) |
||||||||
Sovereign (continued) |
| |||||||
Republic of Peru |
$ | 377,000 | $ | 407,631 | ||||
Republic of Peru |
560,000 | 721,700 | ||||||
Republic of Poland |
1,250,000 | 1,250,000 | ||||||
Republic of Poland |
1,000,000 | 1,099,050 | ||||||
Republic of Serbia |
1,400,000 | 1,588,686 | ||||||
Republic of South Africa |
700,000 | 769,153 | ||||||
Republic of Sri Lanka |
550,000 | 572,130 | ||||||
Republic of Sri Lanka |
780,000 | 811,384 | ||||||
Republic of Sri Lanka |
700,000 | 728,124 | ||||||
Republic of Sri Lanka |
800,000 | 832,142 | ||||||
Republic of the Philippines |
1,500,000 | 1,602,196 | ||||||
Republic of Turkey |
2,130,000 | 1,937,448 | ||||||
Republic of Turkey |
1,090,000 | 913,780 | ||||||
Republic of Turkey |
800,000 | 819,061 | ||||||
Republic of Turkey |
400,000 | 417,360 | ||||||
Republic of Turkey |
450,000 | 688,023 | ||||||
Republic of Venezuela |
2,100,000 | 1,013,250 | ||||||
Republic of Venezuela |
1,600,000 | 775,200 | ||||||
Republic of Venezuela |
1,700,000 | 842,690 | ||||||
Russian Federation |
400,000 | 452,448 | ||||||
United Kingdom Gilt Treasury |
GBP | 300,000 | 511,186 | |||||
United Kingdom Gilt Treasury |
GBP | 1,020,000 | 1,822,270 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Sovereign (continued) |
| |||||||
United Mexican States |
$ | 1,100,000 | $ | 1,091,200 | ||||
United Mexican States |
400,000 | 409,060 | ||||||
United Mexican States |
1,271,000 | 1,135,639 | ||||||
United Mexican States |
172,000 | 163,830 | ||||||
United Mexican States |
1,550,000 | 1,737,937 | ||||||
70,534,142 | ||||||||
SupraNational Banks — 0.3% |
| |||||||
European Investment Bank |
EUR | 1,750,000 | 2,042,577 | |||||
Telephone - Integrated — 0.0% |
| |||||||
Empresa de Telecomunicaciones de Bogota |
COP | 640,000,000 | 159,607 | |||||
Total Foreign Government Obligations |
||||||||
(cost $74,117,827) |
73,178,469 | |||||||
U.S. GOVERNMENT AGENCIES — 17.6% |
| |||||||
Federal Home Loan Mtg. Corp. — 8.0% |
| |||||||
2.50% due 05/01/2023 |
251,750 | 256,409 | ||||||
2.50% due 01/01/2028 |
277,764 | 281,831 | ||||||
2.50% due 04/01/2028 |
606,959 | 615,844 | ||||||
2.50% due 03/01/2031 |
363,702 | 365,005 | ||||||
2.50% due March 15 TBA |
1,800,000 | 1,804,781 | ||||||
2.78% due 02/01/2037 FRS |
37,218 | 38,698 | ||||||
3.00% due 11/01/2026 |
2,389,933 | 2,461,213 | ||||||
3.00% due 04/01/2043 |
515,406 | 514,945 | ||||||
3.00% due 08/01/2043 |
727,495 | 725,297 | ||||||
3.00% due 07/01/2045 |
4,746,709 | 4,715,691 | ||||||
3.00% due 05/01/2046 |
1,355,053 | 1,346,194 | ||||||
3.00% due 08/01/2046 |
1,933,840 | 1,921,196 | ||||||
3.00% due March 15 TBA |
1,800,000 | 1,851,733 | ||||||
3.00% due March 30 TBA |
11,759,000 | 11,670,156 | ||||||
3.21% due 11/01/2037 FRS |
251,579 | 267,967 | ||||||
3.50% due 03/01/2042 |
346,580 | 357,220 | ||||||
3.50% due 04/01/2042 |
635,725 | 655,281 | ||||||
3.50% due 08/01/2042 |
626,447 | 645,820 | ||||||
3.50% due 09/01/2043 |
65,344 | 67,365 | ||||||
3.50% due 07/01/2045 |
6,519,926 | 6,699,941 | ||||||
3.50% due 08/01/2045 |
323,483 | 333,036 | ||||||
4.00% due 10/01/2043 |
34,995 | 36,826 | ||||||
4.00% due 12/01/2043 |
3,506,779 | 3,715,327 | ||||||
4.00% due 12/01/2046 |
433,637 | 458,960 | ||||||
4.00% due 07/01/2044 |
202,939 | 213,543 | ||||||
4.00% due 10/01/2045 |
169,357 | 178,172 | ||||||
4.00% due 11/01/2045 |
3,667,756 | 3,858,677 | ||||||
4.50% due 02/01/2020 |
11,634 | 11,969 | ||||||
4.50% due 08/01/2020 |
5,357 | 5,482 | ||||||
4.50% due 03/01/2023 |
27,396 | 28,032 | ||||||
4.50% due 03/01/2039 |
2,349,444 | 2,541,823 | ||||||
4.50% due 12/01/2039 |
21,381 | 23,054 | ||||||
4.50% due 07/01/2040 |
1,383,192 | 1,498,692 | ||||||
4.50% due 04/01/2044 |
432,692 | 464,786 | ||||||
4.50% due 07/01/2044 |
1,460,951 | 1,576,363 |
109 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
U.S. GOVERNMENT AGENCIES (continued) |
| |||||||
Federal Home Loan Mtg. Corp. (continued) |
| |||||||
4.50% due 03/01/2046 |
$ | 2,116,564 | $ | 2,275,016 | ||||
5.00% due 05/01/2034 |
81,196 | 89,933 | ||||||
5.00% due 11/01/2043 |
66,864 | 73,530 | ||||||
5.50% due 06/01/2022 |
29,205 | 31,093 | ||||||
5.50% due 07/01/2035 |
23,977 | 26,972 | ||||||
6.00% due 03/01/2040 |
72,380 | 82,187 | ||||||
6.50% due 02/01/2036 |
13,042 | 15,208 | ||||||
Federal Home Loan Mtg. Corp. |
251,951 | 36,697 | ||||||
Federal Home Loan Mtg. Corp. |
||||||||
Series 2015-DNA1, Class M2 2.62% due 10/25/2027 FRS(2) |
450,000 | 458,464 | ||||||
Series 2014-DN1, Class M2 2.97% due 02/25/2024 FRS(2) |
167,000 | 171,456 | ||||||
Series 2014-HQ2, Class M2 2.97% due 09/25/2024 FRS(2) |
930,000 | 950,963 | ||||||
Series 2014-HQ3, Class M2 3.42% due 10/25/2024 FRS(2) |
499,092 | 503,140 | ||||||
Series 2015-HQA1, Class M2 3.42% due 03/25/2028 FRS(2) |
356,053 | 364,677 | ||||||
Series 2016-HQA1, Class M2 3.52% due 09/25/2028 FRS(2) |
767,000 | 798,736 | ||||||
58,085,401 | ||||||||
Federal National Mtg. Assoc. — 8.1% |
| |||||||
2.50% due 12/01/2026 |
971,435 | 985,117 | ||||||
2.50% due 09/01/2027 |
1,502,226 | 1,523,227 | ||||||
2.50% due 02/01/2031 |
467,285 | 468,944 | ||||||
2.50% due 05/01/2031 |
2,397,516 | 2,406,028 | ||||||
2.57% due 09/01/2035 FRS |
185,696 | 195,364 | ||||||
2.77% due 10/01/2035 FRS |
213,421 | 225,560 | ||||||
2.80% due 11/01/2036 FRS |
100,249 | 106,459 | ||||||
2.89% due 05/01/2037 FRS |
59,385 | 62,759 | ||||||
2.93% due 07/01/2039 FRS |
167,140 | 176,993 | ||||||
3.00% due 04/01/2027 |
1,587,151 | 1,638,057 | ||||||
3.00% due 10/01/2027 |
290,742 | 299,481 | ||||||
3.00% due 12/01/2027 |
268,280 | 276,158 | ||||||
3.00% due 10/01/2030 |
471,045 | 484,877 | ||||||
3.00% due 03/01/2042 |
540,526 | 539,787 | ||||||
3.00% due 12/01/2042 |
204,050 | 203,603 | ||||||
3.00% due 05/01/2043 |
410,335 | 408,757 | ||||||
3.00% due 02/01/2045 |
262,440 | 260,968 | ||||||
3.00% due 06/01/2045 |
366,549 | 366,389 | ||||||
3.00% due 08/01/2045 |
2,719,208 | 2,703,957 | ||||||
3.00% due 09/01/2046 |
397,785 | 395,554 | ||||||
3.09% due 10/01/2040 FRS |
61,709 | 65,284 | ||||||
3.16% due 08/01/2035 FRS |
136,307 | 145,827 | ||||||
3.26% due 05/01/2040 FRS |
217,661 | 230,108 | ||||||
3.27% due 10/01/2040 FRS |
121,950 | 129,361 | ||||||
3.50% due 09/01/2026 |
285,737 | 298,634 | ||||||
3.50% due 08/01/2027 |
93,039 | 97,091 | ||||||
3.50% due 10/01/2028 |
295,639 | 310,065 | ||||||
3.50% due 07/01/2042 |
129,795 | 131,886 | ||||||
3.50% due 08/01/2042 |
737,564 | 756,154 | ||||||
3.50% due 09/01/2042 |
650,453 | 670,193 | ||||||
3.50% due 04/01/2045 |
2,593,621 | 2,665,317 | ||||||
3.50% due 07/01/2045 |
225,670 | 231,590 | ||||||
3.50% due 08/01/2045 |
496,479 | 510,195 | ||||||
3.50% due 10/01/2045 |
555,188 | 570,876 | ||||||
3.50% due 11/01/2045 |
531,456 | 545,396 | ||||||
3.50% due 12/01/2045 |
9,814,074 | 10,071,494 | ||||||
3.50% due 02/01/2046 |
1,301,362 | 1,335,496 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Federal National Mtg. Assoc. (continued) |
| |||||||
3.50% due 07/01/2046 |
$ | 6,698,087 | $ | 6,892,792 | ||||
3.50% March 15 TBA |
3,039,000 | 3,169,183 | ||||||
4.00% due 11/01/2025 |
165,959 | 174,381 | ||||||
4.00% due 06/01/2039 |
360,191 | 383,472 | ||||||
4.00% due 12/01/2040 |
43,881 | 46,302 | ||||||
4.00% due 11/01/2041 |
372,072 | 392,311 | ||||||
4.00% due 01/01/2043 |
2,648,217 | 2,806,709 | ||||||
4.00% due 12/01/2043 |
341,251 | 362,310 | ||||||
4.00% due 10/01/2044 |
363,209 | 381,995 | ||||||
4.00% due 02/01/2045 |
4,286,106 | 4,537,327 | ||||||
4.00% due 02/01/2046 |
4,142,585 | 4,357,112 | ||||||
4.00% due 06/01/2046 |
907,194 | 954,175 | ||||||
4.50% due 06/01/2019 |
10,058 | 10,310 | ||||||
4.50% due 11/01/2040 |
81,344 | 87,807 | ||||||
4.50% due 05/01/2041 |
81,958 | 88,167 | ||||||
4.50% due 03/01/2042 |
362,849 | 391,079 | ||||||
4.50% due 08/01/2044 |
1,206,061 | 1,297,165 | ||||||
4.50% due 08/01/2045 |
5,524,411 | 6,017,644 | ||||||
5.00% due 01/01/2023 |
58,739 | 62,748 | ||||||
5.00% due 04/01/2023 |
39,747 | 42,466 | ||||||
5.00% due 03/01/2037 |
12,440 | 13,651 | ||||||
5.00% due 05/01/2040 |
263,468 | 290,348 | ||||||
5.00% due 06/01/2040 |
87,745 | 96,289 | ||||||
5.00% due 07/01/2040 |
29,611 | 32,514 | ||||||
5.00% due 02/01/2045 |
787,262 | 876,072 | ||||||
5.50% due 08/01/2037 |
321,505 | 359,367 | ||||||
5.50% due 06/01/2038 |
42,765 | 47,876 | ||||||
6.00% due 02/01/2032 |
3,445 | 3,898 | ||||||
6.00% due 10/01/2034 |
135 | 153 | ||||||
6.00% due 09/01/2038 |
85,368 | 96,646 | ||||||
6.00% due 11/01/2038 |
25,650 | 29,031 | ||||||
6.00% due 06/01/2040 |
21,337 | 24,165 | ||||||
6.50% due 11/01/2037 |
58,846 | 68,203 | ||||||
Federal National Mortgage Assoc. FRS |
307,293 | 309,982 | ||||||
67,196,656 | ||||||||
Government National Mtg. Assoc. — 2.4% |
| |||||||
3.00% due 02/20/2045 |
284,476 | 288,302 | ||||||
3.00% due 05/20/2045 |
215,528 | 218,410 | ||||||
3.00% due 07/20/2045 |
65,223 | 66,091 | ||||||
3.00% due 11/20/2045 |
2,649,226 | 2,684,486 | ||||||
3.00% due 03/20/2046 |
516,143 | 523,013 | ||||||
3.00% due 04/20/2046 |
3,973,362 | 4,026,246 | ||||||
3.00% due March 30 TBA |
281,000 | 284,337 | ||||||
3.50% due 03/20/2045 |
206,292 | 214,753 | ||||||
3.50% due 04/20/2045 |
304,625 | 317,120 | ||||||
3.50% due 07/20/2045 |
205,943 | 214,390 | ||||||
3.50% due 10/20/2045 |
5,578,505 | 5,807,313 | ||||||
3.50% due 05/20/2046 |
2,674,349 | 2,784,040 | ||||||
4.00% due 07/20/2045 |
1,269,028 | 1,344,132 | ||||||
4.00% due 10/20/2045 |
814,751 | 863,890 | ||||||
19,636,523 | ||||||||
Tennessee Valley Authority — 0.0% |
| |||||||
1.75% due 10/15/2018 |
316,000 | 318,619 | ||||||
Total U.S. Government Agencies |
||||||||
(cost $147,642,050) |
145,237,199 | |||||||
U.S. GOVERNMENT TREASURIES — 1.3% |
| |||||||
United States Treasury Bonds — 0.9% |
| |||||||
2.25% due 08/15/2046 |
6,500,000 | 5,559,021 | ||||||
2.50% due 02/15/2046 |
899,000 | 813,630 |
110 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares/ Principal Amount(14) |
Value (Note 2) |
||||||
U.S. GOVERNMENT TREASURIES (continued) |
| |||||||
United States Treasury Bonds (continued) |
| |||||||
2.50% due 05/15/2046# |
$ | 120,000 | $ | 108,558 | ||||
3.38% due 05/15/2044 |
40,000 | 43,056 | ||||||
4.50% due 02/15/2036# |
599,000 | 765,527 | ||||||
7,289,792 | ||||||||
United States Treasury Notes — 0.4% |
| |||||||
1.13% due 07/31/2021 |
1,527,000 | 1,481,130 | ||||||
1.38% due 01/31/2021 |
247,000 | 243,652 | ||||||
1.63% due 05/15/2026 |
1,408,000 | 1,321,870 | ||||||
2.13% due 12/31/2021 |
278,000 | 280,986 | ||||||
2.75% due 02/15/2024 |
140,000 | 145,113 | ||||||
3,472,751 | ||||||||
Total U.S. Government Treasuries |
||||||||
(cost $10,859,805) |
10,762,543 | |||||||
LOANS(11)(12)(13) — 0.1% |
| |||||||
E-Commerce/Services — 0.1% |
| |||||||
RentPath LLC FRS |
1,243,597 | 1,168,981 | ||||||
COMMON STOCKS — 0.0% |
| |||||||
Television — 0.0% |
| |||||||
ION Media Networks, Inc. †(4)(15) |
316 | 187,446 | ||||||
PREFERRED SECURITIES — 0.1% |
| |||||||
Electric - Distribution — 0.0% |
| |||||||
Entergy Louisiana LLC |
11,675 | 270,393 | ||||||
Sovereign Agency — 0.0% |
| |||||||
Federal Home Loan Mtg. Corp. FRS |
4,350 | 33,930 | ||||||
Telecom Services — 0.1% |
| |||||||
Qwest Corp. |
13,875 | 340,354 | ||||||
Total Preferred Securities |
||||||||
(cost $705,914) |
644,677 | |||||||
PREFERRED SECURITIES/CAPITAL SECURITIES — 3.1% |
| |||||||
Banks - Commercial — 0.0% |
| |||||||
Standard Chartered PLC VRS |
223,000 | 229,556 | ||||||
Banks - Super Regional — 0.1% |
| |||||||
Fifth Third Bancorp FRS |
637,000 | 630,630 | ||||||
Wells Fargo Capital X |
220,000 | 234,850 | ||||||
865,480 | ||||||||
Diversified Banking Institutions — 0.7% |
| |||||||
Citigroup, Inc. FRS |
1,913,000 | 1,994,302 | ||||||
Credit Agricole SA FRS |
EUR | 900,000 | 1,026,161 | |||||
Deutsche Bank AG VRS |
1,400,000 | 1,307,250 | ||||||
JPMorgan Chase & Co. FRS |
803,000 | 852,344 |
Security Description | Principal Amount(14) |
Value (Note 2) |
||||||
Diversified Banking Institutions (continued) |
| |||||||
Royal Bank of Scotland Group PLC VRS |
$ | 245,000 | $ | 245,306 | ||||
Societe Generale SA VRS |
551,000 | 549,623 | ||||||
5,974,986 | ||||||||
Electric - Generation — 0.1% |
| |||||||
Electricite de France SA VRS |
EUR | 600,000 | 632,461 | |||||
Electric - Integrated — 0.2% |
| |||||||
Dominion Resources, Inc. FRS |
369,000 | 386,527 | ||||||
Engie SA VRS |
EUR | 600,000 | 660,271 | |||||
Southern Co. FRS |
382,000 | 398,172 | ||||||
1,444,970 | ||||||||
Finance - Investment Banker/Broker — 0.0% |
| |||||||
Lehman Brothers Holdings Capital Trust VII |
101,000 | 10 | ||||||
Finance - Other Services — 0.1% |
| |||||||
National Rural Utilities Cooperative Finance Corp. FRS |
545,000 | 556,113 | ||||||
Financial Guarantee Insurance — 0.3% |
| |||||||
Assured Guaranty Municipal Holdings, Inc. FRS |
3,095,000 | 2,630,750 | ||||||
Food - Dairy Products — 0.3% |
| |||||||
Land O’Lakes Capital Trust I |
1,803,000 | 2,028,375 | ||||||
Gas - Distribution — 0.0% |
| |||||||
Centrica PLC VRS 3.00% due 04/10/2076 |
EUR | 225,000 | 241,838 | |||||
Insurance - Life/Health — 0.2% |
| |||||||
Prudential Financial, Inc. FRS |
181,000 | 189,145 | ||||||
Prudential Financial, Inc. FRS |
1,535,000 | 1,652,888 | ||||||
1,842,033 | ||||||||
Insurance - Multi-line — 0.2% |
| |||||||
MetLife, Inc. |
603,000 | 666,315 | ||||||
Zurich Finance UK PLC VRS |
GBP | 500,000 | 714,295 | |||||
1,380,610 | ||||||||
Insurance - Reinsurance — 0.2% |
| |||||||
Muenchener Rueckversicherungs-Gesellschaft AG VRS |
GBP | 850,000 | 1,137,586 | |||||
Multimedia — 0.1% |
| |||||||
Viacom, Inc. FRS |
532,000 | 541,756 | ||||||
Viacom, Inc. FRS |
240,000 | 242,768 | ||||||
784,524 | ||||||||
Oil Companies - Integrated — 0.2% |
| |||||||
TOTAL SA VRS |
EUR | 650,000 | 661,065 | |||||
TOTAL SA VRS |
EUR | 1,125,000 | 1,268,936 | |||||
1,930,001 | ||||||||
111 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Security Description | Shares/ Principal Amount(14) |
Value (Note 2) |
||||||
PREFERRED SECURITIES/CAPITAL SECURITIES (continued) |
| |||||||
Pipelines — 0.1% |
| |||||||
Transcanada Trust FRS |
$ | 602,000 | $ | 608,020 | ||||
TransCanada Trust FRS |
229,000 | 238,389 | ||||||
846,409 | ||||||||
Telephone - Integrated — 0.2% |
| |||||||
Orange SA VRS |
EUR | 550,000 | 613,260 | |||||
Telefonica Europe BV VRS |
EUR | 1,200,000 | 1,333,254 | |||||
1,946,514 | ||||||||
Tools-Hand Held — 0.1% |
| |||||||
Stanley Black & Decker, Inc. FRS |
726,000 | $ | 769,560 | |||||
Total Preferred Securities/Capital Securities |
||||||||
(cost $24,410,994) |
25,241,776 | |||||||
Total Long-Term Investment Securities |
||||||||
(cost $794,920,725) |
801,457,118 | |||||||
SHORT-TERM INVESTMENT SECURITIES — 7.9% |
| |||||||
Registered Investment Companies — 3.7% |
| |||||||
State Street Navigator Securities Lending Government Money Market Portfolio 0.50%(5)(6) |
31,177,315 | 31,177,315 | ||||||
Time Deposits — 4.2% |
| |||||||
Euro Time Deposit with State Street Bank and Trust Co. 0.07% due 03/01/2017 |
34,526,000 | 34,526,000 | ||||||
Total Short-Term Investment Securities |
||||||||
(cost $65,703,315) |
65,703,315 | |||||||
TOTAL INVESTMENTS |
||||||||
(cost $860,624,040)(7) |
104.9 | % | 867,160,433 | |||||
Liabilities in excess of other assets |
(4.9 | ) | (40,356,766 | ) | ||||
NET ASSETS |
100.0 | % | $ | 826,803,667 | ||||
* | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no right to demand registration of these securities. At February 28, 2017, the aggregate value of these securities was $221,405,148 representing 26.8% of net assets. Unless otherwise indicated, these securities are not considered to be illiquid. |
# | The security or a portion thereof is out on loan (see Note 2). |
† | Non-income producing security |
(1) | Commercial Mortgage Backed Security |
(2) | Collateralized Mortgage Obligation |
(3) | Perpetual maturity — maturity date reflects the next call date. |
(4) | Fair valued security. Securities are classified as Level 3 based on the securities valuation inputs (see Note 2). |
(5) | At February 28, 2017, the Fund had loaned securities with a total value of $70,286,300. This was secured by collateral of $31,177,315, which was received in cash and subsequently invested in short-term investments currently value at $31,177,315 as reported in the Portfolio of Investments. Additional collateral of $40,381,016 was received in the form of short-term pooled securities, which the Fund cannot sell or repledge and accordingly is not reflected in the Fund’s assets and liabilities. |
The components of the fixed income pooled securities referenced above are as follows:
Securities |
Coupon Range |
Maturity Date Range |
Value as of February 28, 2017 | |||
Federal Home Loan Mtg. Corp. |
1.50% to 9.25% | 04/01/2018 to 02/01/2047 | $204,316 | |||
Federal National Mtg. Assoc. |
1.75% to 6.00% | 11/01/2017 to 01/01/2047 | 150,673 | |||
Government National Mtg. Assoc. |
1.21% to 8.50% | 12/16/2024 to 02/20/2067 | 540,610 | |||
United States Treasury Bills |
0.00% | 05/04/2017 to 05/11/2017 | 80,514 | |||
United States Treasury Notes/Bonds |
0.13% to 4.38% | 04/15/2017 to 02/15/2045 | 39,404,903 |
(6) | The rate shown is a 7-day yield as of February 28, 2017. |
(7) | See Note 5 for cost of investments on a tax basis. |
(8) | Security in default of interest and principal at maturity. |
(9) | Interest Only |
(10) | Inverse Floating Rate Security that pays interest that varies inversely to changes in the market interest rates. The interest rate shown is the current interest rate at February 28, 2017. |
(11) | Senior loans in the Fund are generally subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments may occur. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. |
(12) | The Fund invests in senior loans which generally pay interest at rates which are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the London Inter-Bank Offer Rate (“LIBOR”) or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. Senior loans are generally considered to be restrictive in that the Fund is ordinarily contractually obligated to receive approval from the Agent Bank and/or borrower prior to the disposition of a senior loan. |
(13) | All loans in the Fund were purchased through assignment agreements unless otherwise indicated. |
(14) | Denominated in United States Dollars unless otherwise indicated. |
(15) | Illiquid security. At February 28, 2017, the aggregate value of these securities was $592,311 representing 0.1% of net assets. |
(16) | Company has filed for bankruptcy protection. |
(17) | Security in default |
(18) | “Step-Up” Security where the rate increases (“steps up”) at a predetermined rate. Rate shown reflects the increased rate. |
BTL—Bank Term Loan
REMIC—Real Estate Mortgage Investment Conduit
TBA—Securities purchased on a forward commitment basis with an approximate principal amount and no definite maturity date. The actual principal and maturity date will be determined upon settlement date.
ULC—Unlimited Liability Corp.
FRS—Floating Rate Security
VRS—Variable Rate Security
The rates shown on FRS and VRS are the current interest rates at February 28, 2017 and unless noted otherwise, the dates are the original maturity dates.
Currency Legend
BRL—Brazilian Real
COP—Columbian Peso
EUR—Euro Currency
GBP—British Pound
112 |
VALIC Company II Strategic Bond Fund
PORTFOLIO OF INVESTMENTS — February 28, 2017 (unaudited) — (continued)
Forward Foreign Currency Contracts | ||||||||||||||||||||||||||||
Counterparty | Contract to Deliver |
In Exchange For |
Delivery Date |
Unrealized |
Unrealized Depreciation |
|||||||||||||||||||||||
JPMorgan Chase Bank N.A |
EUR | 21,724,500 | USD | 22,929,890 | 03/17/2017 | $ | – | $ | (99,920 | ) | ||||||||||||||||||
EUR | 34,050,000 | USD | 36,015,094 | 04/12/2017 | – | (126,062 | ) | |||||||||||||||||||||
GBP | 11,075,000 | USD | 13,821,522 | 04/12/2017 | 64,942 | – | ||||||||||||||||||||||
USD | 354,742 | EUR | 334,000 | 03/17/2017 | – | (674 | ) | |||||||||||||||||||||
USD | 199,124 | GBP | 160,000 | 04/12/2017 | – | (383 | ) | |||||||||||||||||||||
Net Unrealized Appreciation/(Depreciation) |
$ | 64,942 | $ | (227,039 | ) | |||||||||||||||||||||||
EUR—Euro Currency
GBP—British Pound
USD—United States Dollar
The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2017 (see Note 2):
Level 1 - Unadjusted Quoted Prices |
Level 2 - Other Observable Inputs |
Level 3 - Significant Unobservable Inputs |
Total |
|||||||||||||
ASSETS: |
||||||||||||||||
Investments at Value:* |
||||||||||||||||
Asset Backed Securities |
$ | — | $ | 16,151,760 | $ | — | $ | 16,151,760 | ||||||||
U.S. Corporate Bonds & Notes: |
||||||||||||||||
Airlines |
— | 3,978,494 | 57,434 | 4,035,928 | ||||||||||||
Finance Investment Banker/Broker |
— | 380,499 | 25 | 380,524 | ||||||||||||
Gambling (Non-Hotel) |
— | 6,851,485 | 3,520 | 6,855,005 | ||||||||||||
Mining |
— | — | 2,250 | 2,250 | ||||||||||||
Rubber/Plastic Products |
— | — | 0 | 0 | ||||||||||||
Other Industries |
— | 366,930,206 | — | 366,930,206 | ||||||||||||
Foreign Corporate Bonds & Notes: |
||||||||||||||||
Special Purpose Entity |
— | — | 0 | 0 | ||||||||||||
Other Industries |
— | 150,680,354 | — | 150,680,354 | ||||||||||||
Foreign Government Obligations |
— | 73,178,469 | — | 73,178,469 | ||||||||||||
U.S. Government Agencies |
— | 145,237,199 | — | 145,237,199 | ||||||||||||
U.S. Government Treasuries |
— | 10,762,543 | — | 10,762,543 | ||||||||||||
Loans |
— | 1,168,981 | — | 1,168,981 | ||||||||||||
Common Stocks |
— | — | 187,446 | 187,446 | ||||||||||||
Preferred Securities |
644,677 | — | — | 644,677 | ||||||||||||
Preferred Securities/Capital Securities: |
||||||||||||||||
Finance Investment Banker/Broker |
— | — | 10 | 10 | ||||||||||||
Other Industries |
— | 25,241,766 | — | 25,241,766 | ||||||||||||
Short-Term Investment Securities: |
||||||||||||||||
Registered Investment Companies |
31,177,315 | — | — | 31,177,315 | ||||||||||||
Time Deposits |
— | 34,526,000 | — | 34,526,000 | ||||||||||||
Total Investments at Value |
$ | 31,821,992 | $ | 835,087,756 | $ | 250,685 | $ | 867,160,433 | ||||||||
Other Financial Instruments:+ |
||||||||||||||||
Forward Foreign Currency Contracts |
$ | — | $ | 64,942 | $ | — | $ | 64,942 | ||||||||
LIABILITIES: |
||||||||||||||||
Other Financial Instruments:+ |
||||||||||||||||
Forward Foreign Currency Contracts |
$ | — | $ | 227,039 | $ | — | $ | 227,039 | ||||||||
* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
+ | Other financial instruments are derivative instruments, not reflected in the Portfolio of Investments, such as futures, forward, swap and written option contracts, which are valued at the unrealized appreciation (depreciation) on the instrument. |
The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.
At the beginning and end of the reporting period, Level 3 investments were not considered a material portion of the Fund.
See Notes to Financial Statements
113 |
VALIC Company II
STATEMENTS OF ASSETS AND LIABILITIES — February 28, 2017 (unaudited)
AGGRESSIVE GROWTH LIFESTYLE FUND |
CAPITAL APPRECIATION FUND |
CONSERVATIVE GROWTH LIFESTYLE FUND |
CORE BOND FUND |
GOVERNMENT MONEY MARKET II FUND# |
||||||||||||||||
ASSETS: |
||||||||||||||||||||
Investments at value (unaffiliated)*† |
$ | – | $ | 88,628,226 | $ | – | $ | 1,056,016,872 | $ | 141,004,524 | ||||||||||
Investments at value (affiliated)* |
553,373,062 | 333,180,191 | – | – | ||||||||||||||||
Repurchase agreements (cost approximates value) |
– | – | – | – | 984,000 | |||||||||||||||
Total investments |
553,373,062 | 88,628,226 | 333,180,191 | 1,056,016,872 | 141,988,524 | |||||||||||||||
Cash |
11,123 | 776 | 35,274 | 72,219 | 24 | |||||||||||||||
Foreign cash* |
– | – | – | – | – | |||||||||||||||
Due from broker |
– | – | – | – | – | |||||||||||||||
Receivable for: |
||||||||||||||||||||
Fund shares sold |
201,499 | 5,103 | 323,087 | 370,611 | 34,411 | |||||||||||||||
Dividends and interest |
– | 98,971 | – | 6,867,922 | 19,730 | |||||||||||||||
Investments sold |
– | 1,356,963 | – | 7,867,238 | – | |||||||||||||||
Investments sold on an extended settlement basis |
– | – | – | – | – | |||||||||||||||
Payments on swap contracts |
– | – | – | – | – | |||||||||||||||
Securities lending income |
– | 657 | – | 12,840 | – | |||||||||||||||
Prepaid expenses and other assets |
16,252 | 11,800 | 12,096 | 33,261 | 21,876 | |||||||||||||||
Due from investment adviser for expense reimbursements/fee waivers |
12,758 | 8,101 | 10,797 | 21,283 | 37,639 | |||||||||||||||
Unrealized appreciation on forward foreign currency contracts |
– | – | – | – | – | |||||||||||||||
Swap premiums paid |
– | – | – | – | – | |||||||||||||||
Unrealized appreciation on swap contracts |
– | – | – | – | – | |||||||||||||||
TOTAL ASSETS |
553,614,694 | 90,110,597 | 333,561,445 | 1,071,262,246 | 142,102,204 | |||||||||||||||
LIABILITIES: |
||||||||||||||||||||
Payable for: |
||||||||||||||||||||
Fund shares reacquired |
27,543 | 6,422 | 6,663 | 34,317 | 91,854 | |||||||||||||||
Investments purchased |
173,956 | 199,804 | 316,423 | 5,158,323 | 6,999,913 | |||||||||||||||
Investments purchased on an extended settlement basis |
– | – | – | 15,612,573 | – | |||||||||||||||
Investment advisory and management fees |
42,167 | 36,701 | 25,427 | 340,338 | 25,822 | |||||||||||||||
Shareholder services |
– | 16,682 | – | 195,931 | 25,822 | |||||||||||||||
Administrative service fees |
– | 4,504 | – | 52,901 | 6,972 | |||||||||||||||
Transfer agent fees and expenses |
252 | 503 | 252 | 503 | 189 | |||||||||||||||
Trustees’ fees and expenses |
8,526 | 4,794 | 5,926 | 20,027 | 15,729 | |||||||||||||||
Other accrued expenses |
64,675 | 33,705 | 41,860 | 111,099 | 27,323 | |||||||||||||||
Accrued foreign tax on capital gains |
– | – | – | – | – | |||||||||||||||
Collateral upon return of securities loaned |
– | 1,724,967 | – | 20,710,665 | – | |||||||||||||||
Due to broker |
– | – | – | – | – | |||||||||||||||
Variation margin on futures contracts |
– | – | – | – | – | |||||||||||||||
Unrealized depreciation on forward foreign currency contracts |
– | – | – | – | – | |||||||||||||||
TOTAL LIABILITIES |
317,119 | 2,028,082 | 396,551 | 42,236,677 | 7,193,624 | |||||||||||||||
NET ASSETS |
$ | 553,297,575 | $ | 88,082,515 | $ | 333,164,894 | $ | 1,029,025,569 | $ | 134,908,580 | ||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||
Trust shares at par value of $0.01 per share |
$ | 501,952 | $ | 51,718 | $ | 275,116 | $ | 924,031 | $ | 1,348,802 | ||||||||||
Additional paid in capital |
471,765,872 | 61,012,824 | 314,851,426 | 985,940,994 | 133,560,619 | |||||||||||||||
Accumulated undistributed net investment income (loss) |
15,109,633 | 652,183 | 10,291,641 | 40,084,083 | (5,309 | ) | ||||||||||||||
Accumulated undistributed net realized gain (loss) on investments, swap contracts, futures contracts, options contracts, securities sold short, foreign exchange transactions and capital gain distributions from underlying funds |
39,739,131 | 8,448,751 | 1,692,246 | (3,226,211 | ) | 4,468 | ||||||||||||||
Unrealized appreciation (depreciation) on investments |
26,180,987 | 17,917,039 | 6,054,465 | 5,302,672 | – | |||||||||||||||
Unrealized appreciation (depreciation) on swap contracts, futures contracts and options contracts |
– | – | – | – | – | |||||||||||||||
Unrealized foreign exchange gain (loss) on other assets and liabilities |
– | – | – | – | – | |||||||||||||||
Accrued capital gains tax on unrealized appreciation (depreciation) |
– | – | – | – | – | |||||||||||||||
NET ASSETS |
$ | 553,297,575 | $ | 88,082,515 | $ | 333,164,894 | $ | 1,029,025,569 | 134,908,580 | |||||||||||
SHARES OF BENEFICIAL INTEREST: |
||||||||||||||||||||
Authorized (Par value $0.01 per share) |
1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||||||||||||
Outstanding |
50,195,238 | 5,171,813 | 27,511,612 | 92,403,075 | 134,880,200 | |||||||||||||||
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE |
11.02 | 17.03 | 12.11 | 11.14 | 1.00 | |||||||||||||||
* Cost |
||||||||||||||||||||
Investments (unaffiliated) |
$ | – | $ | 70,711,187 | $ | – | $ | 1,050,714,200 | $ | 141,004,524 | ||||||||||
Investments (affiliated) |
$ | 527,192,075 | $ | – | $ | 327,125,726 | $ | – | $ | – | ||||||||||
Foreign cash |
$ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||
† Including securities on loan |
$ | – | $ | 8,837,846 | $ | – | $ | 64,149,003 | $ | – | ||||||||||
# | See Note 1 |
See Notes to Financial Statements
114 |
VALIC Company II
STATEMENTS OF ASSETS AND LIABILITIES — February 28, 2017 (unaudited) — (continued)
HIGH YIELD BOND FUND |
INTERNATIONAL OPPORTUNITIES FUND |
LARGE CAP VALUE FUND |
MID CAP GROWTH FUND |
MID CAP VALUE FUND |
||||||||||||||||
ASSETS: |
||||||||||||||||||||
Investments at value (unaffiliated)*† |
$ | 648,282,391 | $ | 581,370,371 | $ | 250,830,671 | $ | 121,577,283 | $ | 1,073,222,821 | ||||||||||
Investments at value (affiliated)* |
– | – | – | – | – | |||||||||||||||
Repurchase agreements (cost approximates value) |
28,111,000 | 11,982,000 | – | 437,000 | 6,481,000 | |||||||||||||||
Total investments |
676,393,391 | 593,352,371 | 250,830,671 | 122,014,283 | 1,079,703,821 | |||||||||||||||
Cash |
560 | 837 | 94,587 | 260 | 74 | |||||||||||||||
Foreign cash* |
108,366 | 210,478 | – | – | 28 | |||||||||||||||
Due from broker |
– | – | – | – | – | |||||||||||||||
Receivable for: |
||||||||||||||||||||
Fund shares sold |
91,326 | 25,925 | 88,951 | 9,744 | 28,899 | |||||||||||||||
Dividends and interest |
9,432,274 | 696,476 | 425,848 | 68,318 | 1,034,584 | |||||||||||||||
Investments sold |
– | 110,177 | 2,847,890 | 1,601,833 | 9,578,673 | |||||||||||||||
Investments sold on an extended settlement basis |
– | – | – | – | – | |||||||||||||||
Payments on swap contracts |
112,171 | – | – | – | – | |||||||||||||||
Securities lending income |
25,095 | 36,451 | 1,805 | 670 | 10,590 | |||||||||||||||
Prepaid expenses and other assets |
23,555 | 38,957 | 26,550 | 14,584 | 47,754 | |||||||||||||||
Due from investment adviser for expense reimbursements/fee waivers |
– | 101,624 | 10,169 | 26,821 | – | |||||||||||||||
Unrealized appreciation on forward foreign currency contracts |
– | – | – | – | – | |||||||||||||||
Swap premiums paid |
462,743 | – | – | – | – | |||||||||||||||
Unrealized appreciation on swap contracts |
414,442 | – | – | – | – | |||||||||||||||
TOTAL ASSETS |
687,063,923 | 594,573,296 | 254,326,471 | 123,736,513 | 1,090,404,423 | |||||||||||||||
LIABILITIES: |
||||||||||||||||||||
Payable for: |
||||||||||||||||||||
Fund shares reacquired |
19,315 | 155,916 | 8,075 | 23,879 | 241,946 | |||||||||||||||
Investments purchased |
2,495,633 | 782,085 | 3,087,443 | 252,260 | 6,641,229 | |||||||||||||||
Investments purchased on an extended settlement basis |
– | – | – | – | – | |||||||||||||||
Investment advisory and management fees |
286,621 | 356,291 | 93,733 | 70,468 | 565,918 | |||||||||||||||
Shareholder services |
118,950 | 108,944 | 46,866 | 23,112 | 205,859 | |||||||||||||||
Administrative service fees |
32,116 | 29,415 | 12,654 | 6,240 | 55,582 | |||||||||||||||
Transfer agent fees and expenses |
503 | 377 | 378 | 440 | 566 | |||||||||||||||
Trustees’ fees and expenses |
9,613 | 29,780 | 10,454 | 8,975 | 31,413 | |||||||||||||||
Other accrued expenses |
53,120 | 102,236 | 38,848 | 46,025 | 115,805 | |||||||||||||||
Accrued foreign tax on capital gains |
– | 60,242 | – | – | – | |||||||||||||||
Collateral upon return of securities loaned |
56,735,310 | 24,704,492 | 2,848,330 | 1,904,300 | 8,584,834 | |||||||||||||||
Due to broker |
414,605 | – | – | – | – | |||||||||||||||
Variation margin on futures contracts |
– | – | – | – | – | |||||||||||||||
Unrealized depreciation on forward foreign currency contracts |
27,498 | – | – | – | – | |||||||||||||||
TOTAL LIABILITIES |
60,193,284 | 26,329,778 | 6,146,781 | 2,335,699 | 16,443,152 | |||||||||||||||
NET ASSETS |
$ | 626,870,639 | $ | 568,243,518 | $ | 248,179,690 | $ | 121,400,814 | $ | 1,073,961,271 | ||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||
Trust shares at par value of $0.01 per share |
$ | 795,236 | $ | 348,659 | $ | 118,368 | $ | 132,888 | $ | 475,103 | ||||||||||
Additional paid in capital |
613,170,232 | 567,449,852 | 215,372,250 | 101,917,271 | 797,729,076 | |||||||||||||||
Accumulated undistributed net investment income (loss) |
42,054,630 | 4,748,575 | 4,597,266 | (69,175 | ) | 8,768,885 | ||||||||||||||
Accumulated undistributed net realized gain (loss) on investments, swap contracts, futures contracts, options contracts, securities sold short, foreign exchange transactions and capital gain distributions from underlying funds |
(45,563,006 | ) | (91,715,525 | ) | (4,354,978 | ) | 2,990,057 | 93,925,744 | ||||||||||||
Unrealized appreciation (depreciation) on investments |
16,027,028 | 87,510,049 | 32,446,784 | 16,429,773 | 173,062,157 | |||||||||||||||
Unrealized appreciation (depreciation) on swap contracts, futures contracts and options contracts |
414,442 | – | – | – | – | |||||||||||||||
Unrealized foreign exchange gain (loss) on other assets and liabilities |
(27,923 | ) | (37,871 | ) | – | – | 306 | |||||||||||||
Accrued capital gains tax on unrealized appreciation (depreciation) |
– | (60,221 | ) | – | – | – | ||||||||||||||
NET ASSETS |
$ | 626,870,639 | $ | 568,243,518 | $ | 248,179,690 | $ | 121,400,814 | $ | 1,073,961,271 | ||||||||||
SHARES OF BENEFICIAL INTEREST: |
||||||||||||||||||||
Authorized (Par value $0.01 per share) |
1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||||||||||||
Outstanding |
79,523,567 | 34,865,941 | 11,836,841 | 13,288,807 | 47,510,342 | |||||||||||||||
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE |
7.88 | 16.30 | 20.97 | 9.14 | 22.60 | |||||||||||||||
* Cost |
||||||||||||||||||||
Investments (unaffiliated) |
$ | 632,255,363 | $ | 493,860,322 | $ | 218,383,887 | $ | 105,147,510 | $ | 900,160,664 | ||||||||||
Investments (affiliated) |
$ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||
Foreign cash |
$ | 108,617 | $ | 210,141 | $ | – | $ | – | $ | 30 | ||||||||||
† Including securities on loan |
$ | 55,733,170 | $ | 40,181,890 | $ | 16,951,251 | $ | 15,452,992 | $ | 141,991,088 | ||||||||||
See Notes to Financial Statements
115 |
VALIC Company II
STATEMENTS OF ASSETS AND LIABILITIES — February 28, 2017 (unaudited) — (continued)
MODERATE GROWTH LIFESTYLE FUND |
SMALL CAP GROWTH FUND |
SMALL CAP VALUE FUND |
SOCIALLY RESPONSIBLE FUND |
STRATEGIC BOND FUND |
||||||||||||||||
ASSETS: |
||||||||||||||||||||
Investments at value (unaffiliated)*† |
$ | – | $ | 125,381,393 | $ | 564,162,654 | $ | 813,564,962 | $ | 867,160,433 | ||||||||||
Investments at value (affiliated)* |
878,141,394 | – | – | – | – | |||||||||||||||
Repurchase agreements (cost approximates value) |
– | – | 14,450,000 | 3,329,000 | – | |||||||||||||||
Total investments |
878,141,394 | 125,381,393 | 578,612,654 | 816,893,962 | 867,160,433 | |||||||||||||||
Cash |
– | 149 | 257 | 145 | 337,532 | |||||||||||||||
Foreign cash* |
– | – | – | – | 65,602 | |||||||||||||||
Due from broker |
– | – | 796,961 | – | – | |||||||||||||||
Receivable for: |
||||||||||||||||||||
Fund shares sold |
40,734 | 24,349 | 52,498 | 134,936 | 301,367 | |||||||||||||||
Dividends and interest |
– | 45,304 | 354,101 | 1,316,254 | 10,033,659 | |||||||||||||||
Investments sold |
317,106 | 86,648 | 1,911,257 | – | 11,772,357 | |||||||||||||||
Investments sold on an extended settlement basis |
– | – | – | – | – | |||||||||||||||
Payments on swap contracts |
– | – | – | – | – | |||||||||||||||
Securities lending income |
– | 27,238 | 66,395 | 9,283 | 20,436 | |||||||||||||||
Prepaid expenses and other assets |
23,059 | 10,937 | 29,250 | 42,591 | 32,924 | |||||||||||||||
Due from investment adviser for expense reimbursements/fee waivers |
21,341 | 6,784 | 25,920 | 27,302 | – | |||||||||||||||
Unrealized appreciation on forward foreign currency contracts |
– | – | – | – | 64,942 | |||||||||||||||
Swap premiums paid |
– | – | – | – | – | |||||||||||||||
Unrealized appreciation on swap contracts |
– | – | – | – | – | |||||||||||||||
TOTAL ASSETS |
878,543,634 | 125,582,802 | 581,849,293 | 818,424,473 | 889,789,252 | |||||||||||||||
LIABILITIES: |
||||||||||||||||||||
Payable for: |
||||||||||||||||||||
Fund shares reacquired |
357,840 | 15,574 | 22,548 | 384,980 | 19,778 | |||||||||||||||
Investments purchased |
– | 262,700 | 3,145,539 | 4,999,517 | 9,668,996 | |||||||||||||||
Investments purchased on an extended settlement basis |
– | – | – | – | 21,258,418 | |||||||||||||||
Investment advisory and management fees |
67,200 | 69,953 | 285,106 | 152,693 | 318,422 | |||||||||||||||
Shareholder services |
– | 20,662 | 108,181 | 152,693 | 157,723 | |||||||||||||||
Administrative service fees |
– | 5,579 | 29,209 | 41,227 | 42,585 | |||||||||||||||
Transfer agent fees and expenses |
252 | 503 | 440 | 251 | 692 | |||||||||||||||
Trustees’ fees and expenses |
12,850 | 4,882 | 17,248 | 30,211 | 20,826 | |||||||||||||||
Other accrued expenses |
64,232 | 41,507 | 76,664 | 67,644 | 93,791 | |||||||||||||||
Accrued foreign tax on capital gains |
– | – | – | – | – | |||||||||||||||
Collateral upon return of securities loaned |
– | 13,254,149 | 26,492,314 | 6,588,519 | 31,177,315 | |||||||||||||||
Due to broker |
– | – | – | – | – | |||||||||||||||
Variation margin on futures contracts |
– | – | 193,615 | 56,100 | – | |||||||||||||||
Unrealized depreciation on forward foreign currency contracts |
– | – | – | – | 227,039 | |||||||||||||||
TOTAL LIABILITIES |
502,374 | 13,675,509 | 30,370,864 | 12,473,835 | 62,985,585 | |||||||||||||||
NET ASSETS |
$ | 878,041,260 | $ | 111,907,293 | $ | 551,478,429 | $ | 805,950,638 | $ | 826,803,667 | ||||||||||
NET ASSETS REPRESENTED BY: |
||||||||||||||||||||
Trust shares at par value of $0.01 per share |
$ | 601,066 | $ | 70,779 | $ | 354,831 | $ | 384,433 | $ | 724,996 | ||||||||||
Additional paid in capital |
773,284,589 | 86,077,663 | 407,141,728 | 533,694,503 | 801,768,369 | |||||||||||||||
Accumulated undistributed net investment income (loss) |
25,217,119 | (360,964 | ) | 8,554,942 | 17,131,993 | 40,694,751 | ||||||||||||||
Accumulated undistributed net realized gain (loss) on investments, swap contracts, futures contracts, options contracts, securities sold short, foreign exchange transactions and capital gain distributions from underlying funds |
40,927,309 | 6,335,973 | 35,944,258 | 54,669,396 | (22,728,378 | ) | ||||||||||||||
Unrealized appreciation (depreciation) on investments |
38,011,177 | 19,783,842 | 99,435,109 | 199,107,535 | 6,536,393 | |||||||||||||||
Unrealized appreciation (depreciation) on swap contracts, futures contracts and options contracts |
– | – | 47,561 | 962,778 | – | |||||||||||||||
Unrealized foreign exchange gain (loss) on other assets and liabilities |
– | – | – | – | (192,464 | ) | ||||||||||||||
Accrued capital gains tax on unrealized appreciation (depreciation) |
– | – | – | – | – | |||||||||||||||
NET ASSETS |
$ | 878,041,260 | $ | 111,907,293 | $ | 551,478,429 | $ | 805,950,638 | $ | 826,803,667 | ||||||||||
SHARES OF BENEFICIAL INTEREST: |
||||||||||||||||||||
Authorized (Par value $0.01 per share) |
1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||||||||||||
Outstanding |
60,106,592 | 7,077,870 | 35,483,113 | 38,443,318 | 72,499,576 | |||||||||||||||
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE |
14.61 | 15.81 | 15.54 | 20.96 | 11.40 | |||||||||||||||
* Cost |
||||||||||||||||||||
Investments (unaffiliated) |
$ | – | $ | 105,597,551 | $ | 464,727,545 | $ | 614,457,427 | $ | 860,624,040 | ||||||||||
Investments (affiliated) |
$ | 840,130,217 | $ | – | $ | – | $ | – | $ | – | ||||||||||
Foreign cash |
$ | – | $ | – | $ | – | $ | – | $ | 65,947 | ||||||||||
† Including securities on loan |
$ | – | $ | 24,743,772 | $ | 83,527,843 | $ | 91,539,741 | $ | 70,286,300 | ||||||||||
See Notes to Financial Statements
116 |
VALIC Company II
STATEMENTS OF OPERATIONS — For the Six Months Ended February 28, 2017 (unaudited)
AGGRESSIVE GROWTH LIFESTYLE FUND |
CAPITAL APPRECIATION FUND |
CONSERVATIVE GROWTH LIFESTYLE FUND |
CORE BOND FUND |
GOVERNMENT MONEY MARKET II FUND# |
||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||
Dividends (unaffiliated) |
$ | – | $ | 548,387 | $ | – | $ | 55,334 | $ | – | ||||||||||
Dividends (affiliated) |
5,206,828 | – | 1,877,284 | – | – | |||||||||||||||
Securities lending income |
– | 9,919 | – | 89,140 | – | |||||||||||||||
Interest (unaffiliated) |
– | 175 | – | 16,324,345 | 326,925 | |||||||||||||||
Total investment income* |
5,206,828 | 558,481 | 1,877,284 | 16,468,819 | 326,925 | |||||||||||||||
EXPENSES: |
||||||||||||||||||||
Investment advisory and management fees |
264,332 | 228,045 | 162,031 | 2,317,472 | 170,830 | |||||||||||||||
Administrative service fee |
– | 27,987 | – | 361,785 | 46,124 | |||||||||||||||
Shareholder services fee |
– | 103,657 | – | 1,339,944 | 170,830 | |||||||||||||||
Transfer agent fees and expenses |
750 | 1,501 | 750 | 1,501 | 563 | |||||||||||||||
Custodian and accounting fees |
5,951 | 9,172 | 5,951 | 44,560 | 6,730 | |||||||||||||||
Reports to shareholders |
27,544 | 5,022 | 19,623 | 69,585 | 24,870 | |||||||||||||||
Audit and tax fees |
12,599 | 14,189 | 12,599 | 20,085 | 20,059 | |||||||||||||||
Legal fees |
16,833 | 8,464 | 12,986 | 29,192 | 46,134 | |||||||||||||||
Trustees’ fees and expenses |
14,655 | 2,342 | 9,071 | 32,845 | 4,301 | |||||||||||||||
Interest expense |
– | – | – | – | – | |||||||||||||||
Other expenses |
4,895 | 4,824 | 4,445 | 9,457 | 4,702 | |||||||||||||||
Total expenses before fee waivers, expense reimbursements, fees paid indirectly |
347,559 | 405,203 | 227,456 | 4,226,426 | 495,143 | |||||||||||||||
Fees waived and expenses reimbursed by investment adviser (Note 3) |
(83,224 | ) | (52,771 | ) | (65,426 | ) | (99,399 | ) | (182,130 | ) | ||||||||||
Fees paid indirectly (Note 7) |
– | (4,644 | ) | – | – | – | ||||||||||||||
Net expenses |
264,335 | 347,788 | 162,030 | 4,127,027 | 313,013 | |||||||||||||||
Net investment income (loss) |
4,942,493 | 210,693 | 1,715,254 | 12,341,792 | 13,912 | |||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: |
||||||||||||||||||||
Net realized gain (loss) on investments (unaffiliated)** |
– | 2,872,049 | – | 669,213 | 834 | |||||||||||||||
Net realized gain (loss) on investments (affiliated) |
(302,375 | ) | – | (2,667,013 | ) | – | – | |||||||||||||
Net realized gain (loss) from capital gain distributions from underlying funds (affiliated) |
12,729,142 | – | 3,378,005 | – | – | |||||||||||||||
Net realized gain (loss) on futures and swap contracts |
– | – | – | – | – | |||||||||||||||
Net realized foreign exchange gain (loss) on other assets and liabilities |
– | – | – | – | – | |||||||||||||||
Net realized gain (loss) on investments and foreign currencies |
12,426,767 | 2,872,049 | 710,992 | 669,213 | 834 | |||||||||||||||
Change in unrealized appreciation (depreciation) on investments (unaffiliated) |
– | 2,288,555 | – | (31,312,846 | ) | – | ||||||||||||||
Change in unrealized appreciation (depreciation) on investments (affiliated) |
13,368,110 | – | 5,544,885 | – | – | |||||||||||||||
Change in unrealized appreciation (depreciation) on futures and swap contracts |
– | – | – | – | – | |||||||||||||||
Change in unrealized foreign exchange gain (loss) on other assets and liabilities |
– | – | – | – | – | |||||||||||||||
Change in accrued capital gains tax on unrealized appreciation (depreciation) |
– | – | – | – | – | |||||||||||||||
Net unrealized gain (loss) on investments and foreign currencies |
13,368,110 | 2,288,555 | 5,544,885 | (31,312,846 | ) | – | ||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies |
25,794,877 | 5,160,604 | 6,255,877 | (30,643,633 | ) | 834 | ||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 30,737,370 | $ | 5,371,297 | $ | 7,971,131 | $ | (18,301,841 | ) | $ | 14,746 | |||||||||
* Net of foreign withholding taxes on interest and dividends of |
$ | – | $ | – | $ | – | $ | (3,170 | ) | $ | – | |||||||||
** Net of foreign withholding taxes on capital gains of |
$ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||
# | See Note 1 |
See Notes to Financial Statements
117 |
VALIC Company II
STATEMENTS OF OPERATIONS — For the Six Months Ended February 28, 2017 (unaudited) — (continued)
HIGH YIELD BOND FUND |
INTERNATIONAL OPPORTUNITIES FUND |
LARGE CAP VALUE FUND |
MID CAP GROWTH FUND |
MID CAP VALUE FUND |
||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||
Dividends (unaffiliated) |
$ | 216,593 | $ | 3,317,567 | $ | 2,469,976 | $ | 605,284 | $ | 7,519,532 | ||||||||||
Dividends (affiliated) |
– | – | – | – | – | |||||||||||||||
Securities lending income |
162,021 | 177,812 | 6,749 | 4,928 | 38,127 | |||||||||||||||
Interest (unaffiliated) |
18,288,137 | 8,024 | 5,982 | 75 | – | |||||||||||||||
Total investment income* |
18,666,751 | 3,503,403 | 2,482,707 | 610,287 | 7,557,659 | |||||||||||||||
EXPENSES: |
||||||||||||||||||||
Investment advisory and management fees |
1,831,255 | 2,310,396 | 581,017 | 444,136 | 3,501,614 | |||||||||||||||
Administrative service fee |
204,966 | 190,756 | 78,437 | 39,241 | 343,031 | |||||||||||||||
Shareholder services fee |
759,132 | 706,502 | 290,508 | 145,337 | 1,270,483 | |||||||||||||||
Transfer agent fees and expenses |
1,501 | 1,126 | 1,126 | 1,313 | 1,689 | |||||||||||||||
Custodian and accounting fees |
22,277 | 89,080 | 4,915 | 6,186 | 33,548 | |||||||||||||||
Reports to shareholders |
29,905 | 36,992 | 11,995 | 6,530 | 49,702 | |||||||||||||||
Audit and tax fees |
17,836 | 26,193 | 14,234 | 14,232 | 14,491 | |||||||||||||||
Legal fees |
18,055 | 35,123 | 11,209 | 9,177 | 25,785 | |||||||||||||||
Trustees’ fees and expenses |
15,107 | 17,341 | 6,012 | 3,495 | 26,806 | |||||||||||||||
Interest expense |
– | 667 | 1,135 | 9 | – | |||||||||||||||
Other expenses |
7,176 | 10,682 | 6,250 | 5,066 | 13,865 | |||||||||||||||
Total expenses before fee waivers, expense reimbursements, fees paid indirectly |
2,907,210 | 3,424,858 | 1,006,838 | 674,722 | 5,281,014 | |||||||||||||||
Fees waived and expenses reimbursed by investment adviser (Note 3) |
– | (598,849 | ) | (65,592 | ) | (180,575 | ) | – | ||||||||||||
Fees paid indirectly (Note 7) |
– | – | (13,487 | ) | (3,257 | ) | (841 | ) | ||||||||||||
Net expenses |
2,907,210 | 2,826,009 | 927,759 | 490,890 | 5,280,173 | |||||||||||||||
Net investment income (loss) |
15,759,541 | 677,394 | 1,554,948 | 119,397 | 2,277,486 | |||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: |
||||||||||||||||||||
Net realized gain (loss) on investments (unaffiliated)** |
(36,892 | ) | 16,016,717 | 16,441,291 | 5,898,966 | 45,595,095 | ||||||||||||||
Net realized gain (loss) on investments (affiliated) |
– | – | – | – | – | |||||||||||||||
Net realized gain (loss) from capital gain distributions from underlying funds (affiliated) |
– | – | – | – | – | |||||||||||||||
Net realized gain (loss) on futures and swap contracts |
1,273,700 | – | – | – | – | |||||||||||||||
Net realized foreign exchange gain (loss) on other assets and liabilities |
622,533 | (513,569 | ) | 134 | – | (9,845 | ) | |||||||||||||
Net realized gain (loss) on investments and foreign currencies |
1,859,341 | 15,503,148 | 16,441,425 | 5,898,966 | 45,585,250 | |||||||||||||||
Change in unrealized appreciation (depreciation) on investments (unaffiliated) |
8,783,275 | (6,307,770 | ) | 12,749,351 | 3,509,176 | 55,736,244 | ||||||||||||||
Change in unrealized appreciation (depreciation) on investments (affiliated) |
– | – | – | – | – | |||||||||||||||
Change in unrealized appreciation (depreciation) on futures and swap contracts |
(144,737 | ) | – | – | – | – | ||||||||||||||
Change in unrealized foreign exchange gain (loss) on other assets and liabilities |
(123,768 | ) | 6,893 | – | – | 356 | ||||||||||||||
Change in accrued capital gains tax on unrealized appreciation (depreciation) |
– | (33,216 | ) | – | – | – | ||||||||||||||
Net unrealized gain (loss) on investments and foreign currencies |
8,514,770 | (6,334,093 | ) | 12,749,351 | 3,509,176 | 55,736,600 | ||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies |
10,374,111 | 9,169,055 | 29,190,776 | 9,408,142 | 101,321,850 | |||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 26,133,652 | $ | 9,846,449 | $ | 30,745,724 | $ | 9,527,539 | $ | 103,599,336 | ||||||||||
* Net of foreign withholding taxes on interest and dividends of |
$ | – | $ | (300,987 | ) | $ | 998 | $ | 985 | $ | 18,606 | |||||||||
** Net of foreign withholding taxes on capital gains of |
$ | – | $ | 1,933 | $ | – | $ | – | $ | – | ||||||||||
See Notes to Financial Statements
118 |
VALIC Company II
STATEMENTS OF OPERATIONS — For the Six Months Ended February 28, 2017 (unaudited) — (continued)
MODERATE GROWTH LIFESTYLE FUND |
SMALL CAP GROWTH FUND |
SMALL CAP VALUE FUND |
SOCIALLY RESPONSIBLE FUND |
STRATEGIC BOND FUND |
||||||||||||||||
INVESTMENT INCOME: |
||||||||||||||||||||
Dividends (unaffiliated) |
$ | – | $ | 254,914 | $ | 5,792,427 | $ | 8,167,682 | $ | 101,993 | ||||||||||
Dividends (affiliated) |
6,685,457 | – | – | – | – | |||||||||||||||
Securities lending income |
– | 109,028 | 417,207 | 61,631 | 102,757 | |||||||||||||||
Interest (unaffiliated) |
– | 195 | 1,107 | 32,772 | 16,880,576 | |||||||||||||||
Total investment income* |
6,685,457 | 364,137 | 6,210,741 | 8,262,085 | 17,085,326 | |||||||||||||||
EXPENSES: |
||||||||||||||||||||
Investment advisory and management fees |
422,405 | 426,630 | 1,770,781 | 951,123 | 2,069,002 | |||||||||||||||
Administrative service fee |
– | 33,924 | 181,314 | 256,803 | 276,878 | |||||||||||||||
Shareholder services fee |
– | 125,644 | 671,533 | 951,123 | 1,025,473 | |||||||||||||||
Transfer agent fees and expenses |
750 | 1,501 | 1,313 | 750 | 2,065 | |||||||||||||||
Custodian and accounting fees |
5,951 | 8,935 | 20,568 | 14,057 | 54,055 | |||||||||||||||
Reports to shareholders |
48,925 | 4,646 | 24,108 | 45,111 | 47,661 | |||||||||||||||
Audit and tax fees |
12,599 | 14,274 | 15,137 | 14,993 | 20,085 | |||||||||||||||
Legal fees |
22,853 | 8,777 | 16,588 | 21,353 | 23,529 | |||||||||||||||
Trustees’ fees and expenses |
23,233 | 2,699 | 13,938 | 20,893 | 22,526 | |||||||||||||||
Interest expense |
– | – | – | – | – | |||||||||||||||
Other expenses |
7,521 | 5,182 | 10,074 | 11,441 | 8,649 | |||||||||||||||
Total expenses before fee waivers, expense reimbursements, fees paid indirectly |
544,237 | 632,212 | 2,725,354 | 2,287,647 | 3,549,923 | |||||||||||||||
Fees waived and expenses reimbursed by investment adviser (Note 3) |
(121,832 | ) | (49,220 | ) | (173,527 | ) | (157,130 | ) | – | |||||||||||
Fees paid indirectly (Note 7) |
– | (1,552 | ) | (10,582 | ) | – | – | |||||||||||||
Net expenses |
422,405 | 581,440 | 2,541,245 | 2,130,517 | 3,549,923 | |||||||||||||||
Net investment income (loss) |
6,263,052 | (217,303 | ) | 3,669,496 | 6,131,568 | 13,535,403 | ||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES: |
||||||||||||||||||||
Net realized gain (loss) on investments (unaffiliated)** |
– | 2,002,476 | 27,912,041 | 1,299,821 | 1,946,636 | |||||||||||||||
Net realized gain (loss) on investments (affiliated) |
(6,021,308 | ) | – | – | – | – | ||||||||||||||
Net realized gain (loss) from capital gain distributions from underlying funds (affiliated) |
16,731,118 | – | – | – | – | |||||||||||||||
Net realized gain (loss) on futures and swap contracts |
– | – | 1,693,464 | 2,512,219 | – | |||||||||||||||
Net realized foreign exchange gain (loss) on other assets and liabilities |
– | – | – | – | 3,880,314 | |||||||||||||||
Net realized gain (loss) on investments and foreign currencies |
10,709,810 | 2,002,476 | 29,605,505 | 3,812,040 | 5,826,950 | |||||||||||||||
Change in unrealized appreciation (depreciation) on investments (unaffiliated) |
– | 9,398,610 | 40,126,541 | 57,676,521 | (10,788,775 | ) | ||||||||||||||
Change in unrealized appreciation (depreciation) on investments (affiliated) |
20,922,558 | – | – | – | – | |||||||||||||||
Change in unrealized appreciation (depreciation) on futures and swap contracts |
– | – | (19,917 | ) | (265,067 | ) | – | |||||||||||||
Change in unrealized foreign exchange gain (loss) on other assets and liabilities |
– | – | – | – | 237,139 | |||||||||||||||
Change in accrued capital gains tax on unrealized appreciation (depreciation) |
– | – | – | – | – | |||||||||||||||
Net unrealized gain (loss) on investments and foreign currencies |
20,922,558 | 9,398,610 | 40,106,624 | 57,411,454 | (10,551,636 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies |
31,632,368 | 11,401,086 | 69,712,129 | 61,223,494 | (4,724,686 | ) | ||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 37,895,420 | $ | 11,183,783 | $ | 73,381,625 | $ | 67,355,062 | $ | 8,810,717 | ||||||||||
* Net of foreign withholding taxes on interest and dividends of |
$ | – | $ | – | $ | (1,177 | ) | $ | – | $ | 870 | |||||||||
** Net of foreign withholding taxes on capital gains of |
$ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||
See Notes to Financial Statements
119 |
VALIC Company II
STATEMENTS OF CHANGES IN NET ASSETS
AGGRESSIVE GROWTH LIFESTYLE FUND |
CAPITAL APPRECIATION FUND |
CONSERVATIVE GROWTH LIFESTYLE FUND |
||||||||||||||||||||||
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
|||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss) |
$ | 4,942,493 | $ | 9,089,582 | $ | 210,693 | $ | 440,586 | $ | 1,715,254 | $ | 8,058,767 | ||||||||||||
Net realized gain (loss) on investments and foreign currencies |
12,426,767 | 30,832,484 | 2,872,049 | 6,271,006 | 710,992 | 3,139,083 | ||||||||||||||||||
Net unrealized gain (loss) on investments and foreign currencies |
13,368,110 | (1,861,057 | ) | 2,288,555 | (29,046 | ) | 5,544,885 | 8,283,408 | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
30,737,370 | 38,061,009 | 5,371,297 | 6,682,546 | 7,971,131 | 19,481,258 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: |
||||||||||||||||||||||||
Net investment income |
– | (10,738,936 | ) | – | (312,016 | ) | – | (8,954,028 | ) | |||||||||||||||
Net realized gain on securities |
– | (36,862,555 | ) | – | (7,803,191 | ) | – | (13,000,997 | ) | |||||||||||||||
Total distributions to shareholders |
– | (47,601,491 | ) | – | (8,115,207 | ) | – | (21,955,025 | ) | |||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) |
(12,684,994 | ) | 35,895,629 | (2,234,444 | ) | 4,417,592 | (3,195,869 | ) | 5,066,395 | |||||||||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS |
18,052,376 | 26,355,147 | 3,136,853 | 2,984,931 | 4,775,262 | 2,592,628 | ||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||
Beginning of period |
535,245,199 | 508,890,052 | 84,945,662 | 81,960,731 | 328,389,632 | 325,797,004 | ||||||||||||||||||
End of period† |
$ | 553,297,575 | $ | 535,245,199 | $ | 88,082,515 | $ | 84,945,662 | $ | 333,164,894 | $ | 328,389,632 | ||||||||||||
† Includes accumulated undistributed net investment income (loss) of |
$ | 15,109,633 | $ | 10,167,140 | $ | 652,183 | $ | 441,490 | $ | 10,291,641 | $ | 8,576,387 | ||||||||||||
See Notes to Financial Statements
120 |
VALIC Company II
STATEMENTS OF CHANGES IN NET ASSETS — (continued)
CORE BOND FUND |
GOVERNMENT MONEY MARKET II FUND# |
HIGH YIELD BOND FUND |
INTERNATIONAL OPPORTUNITIES FUND |
|||||||||||||||||||||||||||||
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
|||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 12,341,792 | $ | 25,157,030 | $ | 13,912 | $ | 16,693 | $ | 15,759,541 | $ | 25,806,594 | $ | 677,394 | $ | 5,615,908 | ||||||||||||||||
Net realized gain (loss) on investments and foreign currencies |
669,213 | 757,680 | 834 | 4,513 | 1,859,341 | (14,000,137 | ) | 15,503,148 | 20,354,596 | |||||||||||||||||||||||
Net unrealized gain (loss) on investments and foreign currencies |
(31,312,846 | ) | 40,587,643 | – | – | 8,514,770 | 23,598,136 | (6,334,093 | ) | 16,677,016 | ||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(18,301,841 | ) | 66,502,353 | 14,746 | 21,206 | 26,133,652 | 35,404,593 | 9,846,449 | 42,647,520 | |||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: |
||||||||||||||||||||||||||||||||
Net investment income |
– | (23,425,991 | ) | (13,912 | ) | (16,693 | ) | – | (23,145,260 | ) | – | (6,570,282 | ) | |||||||||||||||||||
Net realized gain on securities |
– | (3,247,585 | ) | – | – | – | – | – | – | |||||||||||||||||||||||
Total distributions to shareholders |
– | (26,673,576 | ) | (13,912 | ) | (16,693 | ) | – | (23,145,260 | ) | – | (6,570,282 | ) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) |
(155,587,571 | ) | 97,283,313 | (6,382,977 | ) | (18,619,160 | ) | 10,058,440 | 109,564,711 | (37,658,078 | ) | (36,323,383 | ) | |||||||||||||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS |
(173,889,412 | ) | 137,112,090 | (6,382,143 | ) | (18,614,647 | ) | 36,192,092 | 121,824,044 | (27,811,629 | ) | (246,145 | ) | |||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||
Beginning of period |
1,202,914,981 | 1,065,802,891 | 141,290,723 | 159,905,370 | 590,678,547 | 468,854,503 | 596,055,147 | 596,301,292 | ||||||||||||||||||||||||
End of period† |
$ | 1,029,025,569 | $ | 1,202,914,981 | $ | 134,908,580 | $ | 141,290,723 | $ | 626,870,639 | $ | 590,678,547 | $ | 568,243,518 | $ | 596,055,147 | ||||||||||||||||
† Includes accumulated undistributed net investment income (loss) of |
$ | 40,084,083 | $ | 27,742,291 | $ | (5,309 | ) | $ | (5,309 | ) | $ | 42,054,630 | $ | 26,295,089 | $ | 4,748,575 | $ | 4,071,181 | ||||||||||||||
# | See Note 1 |
See Notes to Financial Statements
121 |
VALIC Company II
STATEMENTS OF CHANGES IN NET ASSETS — (continued)
LARGE CAP VALUE FUND |
MID CAP GROWTH FUND |
MID CAP VALUE FUND |
MODERATE GROWTH LIFESTYLE FUND |
|||||||||||||||||||||||||||||
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
|||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||||||||||||||
OPERATIONS: |
||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 1,554,948 | $ | 3,155,801 | $ | 119,397 | $ | (355,744 | ) | $ | 2,277,486 | $ | 5,960,483 | $ | 6,263,052 | $ | 17,343,033 | |||||||||||||||
Net realized gain (loss) on investments and foreign currencies |
16,441,425 | 7,721,758 | 5,898,966 | (1,571,293 | ) | 45,585,250 | 53,912,204 | 10,709,810 | 35,180,140 | |||||||||||||||||||||||
Net unrealized gain (loss) on investments and foreign currencies |
12,749,351 | 7,417,784 | 3,509,176 | 3,771,207 | 55,736,600 | 27,399,294 | 20,922,558 | 6,586,314 | ||||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
30,745,724 | 18,295,343 | 9,527,539 | 1,844,170 | 103,599,336 | 87,271,981 | 37,895,420 | 59,109,487 | ||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: |
||||||||||||||||||||||||||||||||
Net investment income |
– | (2,372,082 | ) | – | – | – | (2,541,034 | ) | – | (18,174,605 | ) | |||||||||||||||||||||
Net realized gain on securities |
– | – | – | (9,306,137 | ) | – | (130,705,432 | ) | – | (44,418,799 | ) | |||||||||||||||||||||
Total distributions to shareholders |
– | (2,372,082 | ) | – | (9,306,137 | ) | – | (133,246,466 | ) | – | (62,593,404 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) |
(13,410,218 | ) | 21,318,961 | (8,900,268 | ) | (26,055,482 | ) | (27,214,250 | ) | 116,970,362 | (6,828,064 | ) | 52,013,742 | |||||||||||||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS |
17,335,506 | 37,242,222 | 627,271 | (33,517,449 | ) | 76,385,086 | 70,995,877 | 31,067,356 | 48,529,825 | |||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||
Beginning of period |
230,844,184 | 193,601,962 | 120,773,543 | 154,290,992 | 997,576,185 | 926,580,308 | 846,973,904 | 798,444,079 | ||||||||||||||||||||||||
End of period† |
$ | 248,179,690 | $ | 230,844,184 | $ | 121,400,814 | $ | 120,773,543 | $ | 1,073,961,271 | $ | 997,576,185 | $ | 878,041,260 | $ | 846,973,904 | ||||||||||||||||
† Includes accumulated undistributed net investment income (loss) of |
$ | 4,597,266 | $ | 3,042,318 | $ | (69,175 | ) | $ | (188,572 | ) | $ | 8,768,885 | $ | 6,491,399 | $ | 25,217,119 | $ | 18,954,067 | ||||||||||||||
See Notes to Financial Statements
122 |
VALIC Company II
STATEMENTS OF CHANGES IN NET ASSETS — (continued)
SMALL CAP GROWTH FUND |
SMALL CAP VALUE FUND |
SOCIALLY RESPONSIBLE FUND |
STRATEGIC BOND FUND |
|||||||||||||||||||||||||||||
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
For the Six Months Ended February 28, 2017 (Unaudited) |
For the Year Ended August 31, 2016 |
|||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS OPERATIONS: |
||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | (217,303 | ) | $ | (206,361 | ) | $ | 3,669,496 | $ | 4,755,127 | $ | 6,131,568 | $ | 10,817,578 | $ | 13,535,403 | $ | 27,224,356 | ||||||||||||||
Net realized gain (loss) on investments and foreign currencies |
2,002,476 | 4,867,921 | 29,605,505 | 10,332,321 | 3,812,040 | 50,410,350 | 5,826,950 | (22,629,928 | ) | |||||||||||||||||||||||
Net unrealized gain (loss) on investments and foreign currencies |
9,398,610 | (1,266,158 | ) | 40,106,624 | 38,159,100 | 57,411,454 | 23,376,211 | (10,551,636 | ) | 49,458,576 | ||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
11,183,783 | 3,395,402 | 73,381,625 | 53,246,548 | 67,355,062 | 84,604,139 | 8,810,717 | 54,053,004 | ||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: |
||||||||||||||||||||||||||||||||
Net investment income |
– | – | – | (5,703,783 | ) | – | (10,420,982 | ) | – | (30,733,820 | ) | |||||||||||||||||||||
Net realized gain on securities |
– | (9,907,299 | ) | – | (57,354,654 | ) | – | (45,692,358 | ) | – | (2,407,964 | ) | ||||||||||||||||||||
Total distributions to shareholders |
– | (9,907,299 | ) | – | (63,058,437 | ) | – | (56,113,340 | ) | – | (33,141,784 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) |
839,926 | (3,633,641 | ) | (35,686,302 | ) | 36,438,081 | (18,224,980 | ) | 1,869,743 | (5,471,239 | ) | 16,918,052 | ||||||||||||||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS |
12,023,709 | (10,145,538 | ) | 37,695,323 | 26,626,192 | 49,130,082 | 30,360,542 | 3,339,478 | 37,829,272 | |||||||||||||||||||||||
NET ASSETS: |
||||||||||||||||||||||||||||||||
Beginning of period |
99,883,584 | 110,029,122 | 513,783,106 | 487,156,914 | 756,820,556 | 726,460,014 | 823,464,189 | 785,634,917 | ||||||||||||||||||||||||
End of period† |
$ | 111,907,293 | $ | 99,883,584 | $ | 551,478,429 | $ | 513,783,106 | $ | 805,950,638 | $ | 756,820,556 | $ | 826,803,667 | $ | 823,464,189 | ||||||||||||||||
† Includes accumulated undistributed net investment income (loss) of |
$ | (360,964 | ) | $ | (143,661 | ) | $ | 8,554,942 | $ | 4,885,446 | $ | 17,131,993 | $ | 11,000,425 | $ | 40,694,751 | $ | 27,159,348 | ||||||||||||||
See Notes to Financial Statements
123 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited)
Note 1 — Organization
VALIC Company II (the “Series” or “VC II”) was organized as a Delaware statutory trust on May 6, 1998, by The Variable Annuity Life Insurance Company (“VALIC” or the “Adviser”). VALIC, the investment adviser to VC II, is an indirect wholly-owned subsidiary of American International Group, Inc. (“AIG”). VC II is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end, management investment company. The Series consists of 15 separate mutual funds (collectively, the “Funds,” or each, a “Fund”), each of which issues its own class of shares of beneficial interest:
Aggressive Growth Lifestyle Fund* | Mid Cap Growth Fund | |
Capital Appreciation Fund | Mid Cap Value Fund | |
Conservative Growth Lifestyle Fund* | Moderate Growth Lifestyle Fund* | |
Core Bond Fund | Small Cap Growth Fund | |
Government Money Market II Fund (formerly, Money Market II Fund)** | Small Cap Value Fund | |
High Yield Bond Fund | Socially Responsible Fund | |
International Opportunities Fund | Strategic Bond Fund | |
Large Cap Value Fund |
* | The Lifestyle Funds represent “Fund of Funds” which invest in either the VALIC Company I (“VC I”) or VC II mutual funds. |
** | Effective September 28, 2016, the Money Market II Fund was converted into a “government money market fund” as defined by Rule 2a-7 under the Investment Company Act of 1940, as amended. In connection with this conversion the name of Money Market II Fund was changed to Government Money Market II Fund. |
Each Fund is diversified as defined by the 1940 Act.
Indemnifications. Under VC II’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, VC II enters into contracts that contain the obligation to indemnify others. The Funds’ maximum exposure under these arrangements is unknown. Currently, however, VC II expects the risk of loss to be remote.
Note 2 — Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and those differences could be significant. The following is a summary of significant accounting policies consistently followed by the Series in the preparation of its financial statements:
A. Security Valuation
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. In accordance with GAAP, fair value is defined as the price that the Funds would receive upon selling an asset or transferring a liability in a timely transaction to an independent third party in the principal or most advantageous market. GAAP establishes a three-tier hierarchy to provide more transparency around the inputs used to measure fair value and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tiers are as follows:
Level 1 — Unadjusted quoted prices in active markets for identical securities
Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, adjusted quoted prices on foreign equity securities that were adjusted in accordance with pricing procedures approved by the Board of Trustees (the “Board”) , etc.)
Level 3 — Significant unobservable inputs (includes inputs that reflect the Funds’ own assumptions about the assumptions market participants would use in pricing the security, developed based on the best information available under the circumstances)
Changes in valuation techniques may result in transfers in or out of an investment’s assigned Level within the hierarchy. The methodology used for valuing investments is not necessarily an indication of the risk associated with investing in those investments and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to each security.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is recently issued and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The summary of the Funds’ assets and liabilities classified in the fair value hierarchy as of February 28, 2017, is reported on a schedule following the Portfolio of Investments.
124 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
Stocks are generally valued based upon closing sales prices reported on recognized securities exchanges on which the securities are principally traded and are generally categorized as Level 1. Stocks listed on the NASDAQ are valued using the NASDAQ Official Closing Price (“NOCP”). Generally, the NOCP will be the last sale price unless the reported trade for the stock is outside the range of the bid/ask price. In such cases, the NOCP will be normalized to the nearer of the bid or ask price. For listed securities having no sales reported and for unlisted securities, such securities will be valued based upon the last reported bid price.
As of the close of regular trading on the New York Stock Exchange (“NYSE”), securities traded primarily on security exchanges outside the United States are valued at the last sale price on such exchanges on the day of valuation, or if there is no sale on the day of valuation, at the last-reported bid price. If a security’s price is available from more than one exchange, the Funds use the exchange that is the primary market for the security. Such securities are generally categorized as Level 1. However, depending on the foreign market, closing prices may be up to 15 hours old when they are used to price a Fund’s shares, and a Fund may determine that certain closing prices do not reflect the fair value of the security. This determination will be based on the review of a number of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. If a Fund determines that closing prices do not reflect the fair value of the securities, the Fund will adjust the previous closing prices in accordance with pricing procedures approved by the Board to reflect what it believes to be the fair value of the securities as of the close of regular trading on the NYSE. The Funds may also fair value securities in other situations, for example, when a particular foreign market is closed but a Fund is open. For foreign equity securities and foreign equity futures contracts, the Funds use an outside pricing service to provide it with closing market prices and information used for adjusting those prices, and when so adjusted, such securities and futures are generally categorized as Level 2.
Bonds, debentures and other debt securities are valued at evaluated bid prices obtained for the day of valuation from a Board-approved pricing service, and are generally categorized as Level 2. The pricing service may use valuation models or matrix pricing which considers information with respect to comparable bond and note transactions, quotations from bond dealers, or by reference to other securities that are considered comparable in such characteristics as rating, interest rate, and maturity date, option adjusted spread models, prepayments projections, interest rate spreads, and yield curves to determine current value. If a price is unavailable from a Board-approved pricing service, the securities may be priced at the mean of two independent quotes obtained from brokers.
Senior floating rate loans (“Loans”) are valued at the average of available bids in the market for such Loans, as provided by a Board-approved loan pricing service, and are generally categorized as Level 2.
Investments in registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Registered investment companies are generally categorized as Level 1.
Futures contracts traded on national securities exchanges are valued at the quoted daily settlement price established by the exchange on which they trade reported by a Board-approved pricing service, and are generally categorized as Level 1. Swap contracts traded on national securities exchanges are valued at the closing price of the exchange on which they are traded or if a closing price of the exchange is not available, the swap will be valued using a mid valuation provided by a Board-approved pricing service, and are generally categorized as Level 2. Swap contracts traded in the over-the-counter (“OTC”) market are valued at a mid valuation provided by a Board-approved pricing service, and are generally categorized as Level 2. Forward foreign currency contracts (“forward contracts”) are valued at the 4:00 p.m. Eastern Time forward rate and are generally categorized as Level 2.
For the Government Money Market II Fund, securities are valued at amortized cost, which approximates market value and are generally categorized as Level 2. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of any discount or premium. In accordance with Rule 2a-7 under the 1940 Act, the Board has adopted procedures intended to stabilize the Government Money Market II Fund’s net asset value per share at $1.00. These procedures include the determination, at such intervals as the Board deems appropriate and reasonable in light of current market conditions, of the extent, if any, to which the Government Money Market II Fund market-based net asset value per share deviates from the Fund’s amortized cost per share. The calculation of such deviation is referred to as “shadow pricing.” For purposes of these market-based valuations, securities for which market quotations are not readily available are fair valued, as determined pursuant to procedures adopted in good faith by the Board.
Other securities are valued on the basis of last sale or bid price (if a last sale price is not available) which is, in the opinion of the Adviser, the broadest and most representative market, that may be either a securities exchange or OTC market, and are generally categorized as Level 1 or Level 2.
The Board is responsible for the share valuation process and has adopted policies and procedures (the “PRC Procedures”) for valuing the securities and other assets held by the Funds, including procedures for the fair valuation of securities and other assets for which market quotations are not readily available or are unreliable. The PRC Procedures provide for the establishment of a pricing review committee, which is responsible for, among other things, making certain determinations in connection with the Series’ fair valuation procedures. Securities for which market quotations are not readily available or the values of which may be significantly impacted by the occurrence of developments or significant events are generally categorized as Level 3. There is no single standard for making fair value determinations, which may result in prices that vary from those of other funds.
B. Derivative Instruments
Forward Foreign Currency Contracts: During the period, the High Yield Bond Fund and Strategic Bond Fund used forward contracts to attempt to protect the value of securities and related receivables and payables against changes in future foreign exchange rates.
A forward contract is an agreement between two parties to buy or sell currency at a set price on a future date. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked-to-market daily using the forward rate and the cumulative change in market value is recorded by a Fund as unrealized appreciation or depreciation. On the settlement date, a Fund records either realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
125 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
Risks to the Funds of entering into forward contracts include counterparty risk, market risk and illiquidity risk. Counterparty risk arises upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. If the counterparty defaults, a Fund’s loss will generally consist of the net amount of contractual payments that the Fund has not yet received though the Fund’s maximum exposure due to counterparty risk could extend to the notional amount of the contract. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. These contracts may involve market risk in excess of the unrealized appreciation or depreciation reported on the Statements of Assets and Liabilities. Illiquidity risk arises because the secondary market for forwards may have less liquidity relative to markets for other securities. Currency transactions are also subject to risks different from those of other portfolio transactions. Because currency control is of great importance to the issuing governments and influences economic planning and policy, purchases and sales of currency and related instruments can be adversely affected by government exchange controls, limitations or restrictions on repatriation of currency, and manipulations or exchange restrictions imposed by governments.
Forward foreign currency contracts outstanding at the end of the period, if any, are reported on a schedule following the Fund’s Portfolio of Investments.
Futures: During the period, the Small Cap Value Fund and Socially Responsible Fund used equity futures contracts to equitize cash, providing exposure to equity markets.
A futures contract is an agreement between two parties to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures transaction, a Fund will be required to segregate an initial margin payment of cash or other liquid securities with the futures commission merchant (the “broker”). Subsequent payments are made or received by the Fund as a result of changes in the value of the contract and/or changes in the value of the initial margin requirement. Such receipts or payments are recorded in the Statements of Assets and Liabilities as variation margin for changes in the value of the contracts and as due to/from broker for the changes in the value of the initial margin requirement. When a contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
The primary risk to the Funds of entering into futures contracts is market risk. Market risk is the risk that there will be an unfavorable change in the interest rate, value or currency rate of the underlying security(ies). Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities. There may also be trading restrictions or limitations imposed by an exchange, and government regulations may restrict trading in futures contracts. While the Funds will generally only purchase exchange-traded futures, due to market conditions, there may not always be a liquid secondary market for a futures contract and, as a result, a Fund may be unable to close out its futures contracts at a time which is advantageous. In addition, if a Fund has insufficient cash to meet margin requirements, the Fund may need to sell other investments, including at disadvantageous times. There is generally minimal counterparty risk to the Funds since the futures contracts are generally exchange-traded.
Futures contracts outstanding at the end of the period, if any, are reported on a schedule following the Fund’s Portfolio of Investments.
Swap Contracts: Certain Funds may enter into credit default, interest rate, equity and/or total return swap contracts. Swap contracts are privately negotiated in the OTC market and may be entered into as a bilateral contract or a centrally cleared contract (“centrally cleared swaps”). In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and a Fund faces the CCP through a broker. Upon entering into a centrally cleared swap, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the Portfolio of Investments and cash deposited is recorded on the Statements of Assets and Liabilities as due from broker. Unlike a bilateral swap contract, for centrally cleared swaps, the Funds have no credit exposure to the counterparty as the CCP stands between the Funds and the counterparty. Swaps are marked-to-market daily and the changes in value are recorded as an unrealized gain (loss). The daily change in valuation of swap contracts, if any, is recorded as unrealized appreciation (depreciation) on swap contracts. When the swap is terminated, the Funds will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Funds’ basis in the contract, if any. Generally, the basis of the contracts is the premium received or paid. The Funds amortize upfront payments and receipts on the swap contracts on a daily basis. Net periodic payments made or received by the Funds are included as part of realized gain (loss).
Credit Default Swap Agreements: During the period, the High Yield Bond Fund used credit default swaps to manage credit risk (i.e., hedging), enhance returns, and as a substitute for physical securities.
Credit default swaps are generally contracts in which one party makes periodic fixed-rate payments or a one time premium payment (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified payment in the event of a default or other credit event for the referenced entity, obligation or index. As a seller of protection on credit default swaps, a Fund will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, a Fund would effectively add leverage to its Fund because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap. If a Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. As a buyer of protection on credit default swaps, a Fund will make periodic payments, similar to an insurance premium and the seller of protection agrees to compensate the Fund for future potential losses as a result of a credit event on the reference bond or other asset. A Fund effectively transfers the credit event risk of the reference bond or asset from it to the seller of protection. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.
Credit default swaps on corporate issues or sovereign issues of an emerging market country are contracts in which the buyer of protection makes periodic fixed payments or a one time premium payment to the seller of protection in exchange for the right to receive a specified payment in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations
126 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
may result in a cheapest-to deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event). A Fund may use credit default swaps on corporate issues or sovereign issues of an emerging market country to provide a measure of protection against defaults of the issuers (i.e., to reduce credit risk where a Fund owns or has exposure to the referenced obligation) or to take a speculative credit position with an active long or short position with respect to the likelihood of a particular issuer’s default.
Credit default swaps on asset-backed securities are contracts in which the buyer of protection makes periodic fixed-rate payments or a one time premium payment to the seller of protection in exchange for the right to receive a specified payment in the event of a default or other credit event. Unlike credit default swaps on corporate issues or sovereign issues of an emerging market country, deliverable obligations in most instances would be limited to the specific referenced obligation as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap agreement will be adjusted by corresponding amounts. A Fund may use credit default swaps on asset-backed securities to provide a measure of protection against defaults of the referenced obligation or to take a speculative credit position with an active long or short position with respect to the likelihood of a particular referenced obligation’s default.
Credit default swaps on credit indices are generally contracts in which the buyer of protection makes periodic fixed-rate payments or a one time premium payment to the seller of protection in exchange for the right to receive a specified payment in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a list of a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. A Fund may use credit default swaps on credit indices to hedge a Fund of credit default swaps or bonds which is less expensive than it would be to enter into many credit default swaps to achieve a similar effect. Credit-default swaps on indices are used for protecting investors owning bonds against default, and also to speculate on changes in credit quality.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swaps on corporate issues or sovereign issues of an emerging market country as of period end are disclosed in the footnotes to the Portfolio of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default swaps on asset-based securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swaps outstanding at the end of the period, for which a Fund is the seller of protection, if any, are disclosed on a schedule following the Fund’s Portfolio of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swaps entered into by a Fund for the same referenced entity or entities.
Credit default swap contracts outstanding at the end of the period, if any, are reported on a schedule following the Fund’s Portfolio of Investments.
Risks of Entering into Swap Agreements: Risks to a Fund of entering into credit default swaps, equity swaps and interest rate swaps, include credit risk, market risk, counterparty risk, liquidity risk and documentation risk. By entering into swap agreements, the Funds may be exposed to risk of potential loss due to unfavorable changes in interest rates, the price of the underlying security or index, or the underlying referenced asset’s perceived or actual credit, that the counterparty may default on its obligation to perform or the possibility that there is no liquid market for these agreements. There is also the risk that the parties may disagree as to the meaning of contractual terms in the swap agreement. In addition, to the extent that a subadviser does not accurately analyze and predict the underlying economic factors influencing the value of the swap, the Fund may suffer a loss.
Master Agreements: Certain Funds that hold derivative instruments and other financial instruments may be a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements or similar agreements (“Master Agreements”) with certain counterparties that govern such instruments. Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. Collateral can be in the form of cash or securities as agreed to by a Fund and applicable counterparty. Collateral requirements are generally determined based on a Fund’s net position with each counterparty. Master Agreements may also include certain provisions that require a Fund to post additional collateral upon the occurrence of certain events, such as when a Fund’s net assets fall below a specified level. In addition, Master Agreements typically specify certain standard termination events, such as failure of a party to pay or deliver, credit support defaults and other events of default. Termination events applicable to a Fund may also occur upon a decline in a Fund’s net assets below a specified level over a certain period of time. Additional termination events applicable to counterparties may occur upon a decline in a counterparty’s long-term and short-term credit ratings below a specified level, or upon a decline in the ratings of a counterparty’s credit support provider. Upon the occurrence of a termination event, the other party may elect to terminate early and cause settlement of all instruments outstanding pursuant to a particular Master Agreement, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of a Fund’s counterparties to elect early termination could cause a Fund to accelerate the payment of liabilities, which settlement amounts could be in excess of the amount of assets that are already posted as collateral. Typically, the Master Agreement will permit a single net payment in the event of default. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. As a result, the early termination with respect to derivative instruments subject to Master Agreements that are in a net liability position could be material to a Fund’s financial statements. See additional information on specific types of derivative instruments and other financial instruments as disclosed in the Notes to Financial Statements. The Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.
127 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
The following tables represent the value of derivatives held as of February 28, 2017, by their primary underlying risk exposure and the respective location on the Statement of Assets and Liabilities and the effect of derivatives on the Statement of Operations for the six months ended February 28, 2017. For a detailed presentation of derivatives held as of February 28, 2017, please refer to the schedule following the Portfolio of Investments.
Asset Derivatives |
||||||||||||||||
Equity Contracts |
Credit Contracts |
Foreign Exchange Contracts |
Total |
|||||||||||||
Fund |
Futures Contracts(1)(6) |
Swap Contracts(2) |
Foreign Forward Exchange Contracts(3) |
|||||||||||||
High Yield Bond |
$ | — | $ | 414,442 | $ | — | $ | 414,442 | ||||||||
Small Cap Value |
— | — | — | — | ||||||||||||
Socially Responsible |
— | — | — | — | ||||||||||||
Strategic Bond |
— | — | 64,942 | 64,942 | ||||||||||||
Liability Derivatives |
||||||||||||||||
Equity Contracts |
Credit Contracts |
Foreign Exchange Contracts |
Total |
|||||||||||||
Fund |
Futures Contracts(1)(6) |
Swap Contracts(4) |
Foreign Forward Exchange Contracts(5) |
|||||||||||||
High Yield Bond |
$ | — | $ | — | $ | 27,498 | $ | 27,498 | ||||||||
Small Cap Value |
193,615 | — | — | 193,615 | ||||||||||||
Socially Responsible |
56,100 | — | — | 56,100 | ||||||||||||
Strategic Bond |
— | — | 227,039 | 227,039 |
Statement of Assets and Liabilities Location:
(1) | Variation Margin on futures contracts |
(2) | Unrealized appreciation on swap contracts |
(3) | Unrealized appreciation on forward foreign currency contracts |
(4) | Unrealized depreciation on swap contracts |
(5) | Unrealized depreciation on forward foreign currency contracts |
(6) | The variation margin on futures contracts is included in the cumulative unrealized appreciation (depreciation) as reported on each Fund’s Portfolio of Investments in the following amounts: |
Fund |
Cumulative Unrealized Appreciation (Depreciation) |
|||
Small Cap Value |
$ | 47,561 | ||
Socially Responsible |
962,778 |
128 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
Realized Gain (Loss) on Derivatives Recognized in Statement of Operations |
||||||||||||||||
Equity Contracts |
Credit Contracts |
Foreign Exchange Contracts |
Total |
|||||||||||||
Fund |
Futures Contracts(1) |
Swap Contracts(1) |
Foreign Forward Exchange Contracts(2) |
|||||||||||||
High Yield Bond |
$ | — | $ | 1,273,700 | $ | 616,107 | $ | 1,889,807 | ||||||||
Small Cap Value |
1,693,464 | — | — | 1,693,464 | ||||||||||||
Socially Responsible |
2,512,219 | — | — | 2,512,219 | ||||||||||||
Strategic Bond |
— | — | 3,929,216 | 3,929,216 |
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Statement of Operations |
||||||||||||||||
Equity Contracts |
Credit Contracts |
Foreign Exchange Contracts |
Total |
|||||||||||||
Fund |
Futures Contracts(3) |
Swap Contracts(3) |
Foreign Forward Exchange Contracts(4) |
|||||||||||||
High Yield Bond |
$ | — | $ | (144,737 | ) | $ | (123,570 | ) | $ | (268,307 | ) | |||||
Small Cap Value |
(19,917 | ) | — | — | (19,917 | ) | ||||||||||
Socially Responsible |
(265,067 | ) | — | — | (265,067 | ) | ||||||||||
Strategic Bond |
— | — | 258,968 | 258,968 |
Statement of Operations Location:
(1) | Net realized gain (loss) on futures and swap contracts |
(2) | Net realized foreign exchange gain (loss) on other assets and liabilities |
(3) | Change in unrealized appreciation (depreciation) on futures and swap contracts |
(4) | Change in unrealized foreign exchange gain (loss) on other assets and liabilities |
The following table represents the average monthly balances of derivatives held during the six months ended February 28, 2017.
Average Amount Outstanding During the Year |
||||||||||||||||
Fund |
Futures Contracts(1) |
Credit Swap Contracts(2) |
Foreign Forward Exchange Contracts(2) |
Total |
||||||||||||
High Yield Bond |
$ | — | $ | 20,665,850 | $ | 8,526,315 | $ | 29,192,165 | ||||||||
Small Cap Value |
12,127,579 | — | — | 12,127,579 | ||||||||||||
Socially Responsible |
26,410,373 | — | — | 26,410,373 | ||||||||||||
Strategic Bond |
— | — | 83,695,395 | 83,695,395 |
(1) | Amounts represent values in US dollars. |
(2) | Amounts represent notional amounts in US dollars. |
129 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
The following tables set forth the Funds’ derivative assets and liabilities by counterparty, net of amounts available for offset under Master Agreements and net of the related collateral pledged/(received) as of February 28, 2017. The repurchase agreements held by the Funds and securities on loan as of February 28, 2017, are also subject to Master Agreements but are not included in the following tables. See the Portfolio of Investments of each Fund and the Notes to the Financial Statements for more information about the Funds’ holdings in repurchase agreements and securities on loan.
High Yield Bond Fund |
||||||||||||||||||||||||||||||||||||||||||||
Derivative Assets(1) |
Derivative Liabilities(1) |
|||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts |
OTC Swaps |
Options Purchased |
Total |
Forward Foreign Currency Contracts |
OTC Swaps |
Options Written |
Total |
Net Derivative Assets (Liabilities) |
Collateral Pledged/ (Received)(2) |
Net Amount(3) |
|||||||||||||||||||||||||||||||||
JPMorgan Chase Bank N.A. |
$ | — | $ | — | $ | — | $ | — | $ | 27,498 | $ | — | $ | — | $ | 27,498 | $ | (27,498 | ) | $ | — | $ | (27,498 | ) | ||||||||||||||||||||
(1) | Gross amounts of recognized assets and liabilities not offset in the Statements of Assets and Liabilities. |
(2) | For each respective counterparty, collateral pledged or (received) is limited to an amount not to exceed 100% of the net amount of the derivative asset/liability in the table above. |
(3) | Net amount represents the net amount due (to)/from counterparty in the event of a default based on the contractual set-off rights under the agreement. |
C. Stripped Mortgage-Backed Securities
Stripped Mortgage-Backed Securities (“SMBS”) are multiple-class mortgage-backed securities. SMBS are often structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. SMBS have greater market volatility than other types of U.S. government securities in which a Fund invests. A common type of SMBS has one class receiving some of the interest and all or most of the principal (the “principal only” class) from the mortgage pool, while the other class will receive all or most of the interest (the “interest only” class). The yield to maturity on an interest only class is extremely sensitive not only to changes in prevailing interest rates, but also to the rate of principal payments, including principal prepayments, on the underlying pool of mortgage assets, and a rapid rate of principal payment may have a material adverse effect on a Fund‘s yield.
D. Mortgage-Backed Dollar Rolls
During the six months ended February 28, 2017, the Core Bond Fund and the Strategic Bond Fund entered into dollar rolls using “to be announced” (“TBA”) mortgage-backed securities (“TBA Rolls”). TBA Roll transactions involve the sale of mortgage or other asset backed securities with the commitment to purchase substantially similar securities on a specified future date. The Funds’ policy is to record the components of TBA Rolls as purchase/sale transactions. Any difference between the purchase and sale price is recorded as a realized gain or loss on the date the transaction is entered into. TBA Roll transactions involve the risk that the market value of the securities held by a Fund may decline below the price of the securities that the Fund has sold but is obligated to repurchase under the agreement. In the event that the buyer of securities in a TBA Roll transaction files bankruptcy or becomes insolvent, a Fund‘s use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund‘s obligation to repurchase the securities. The return earned by a Fund with the proceeds of the TBA Roll transaction may not exceed the transaction costs.
E. When-Issued Securities and Forward Commitments
Certain Funds may purchase or sell when-issued securities, including TBA securities that have been authorized, but not yet issued in the market. In addition, a Fund may purchase or sell securities on a forward commitment basis. A forward commitment involves entering into a contract to purchase or sell securities, typically on an extended settlement basis, for a fixed price at a future date. The Funds may engage in when-issued or forward commitment transactions in order to secure what is considered to be an advantageous price and yield at the time of entering into the obligation. The purchase of securities on a when-issued or forward commitment basis involves a risk of loss if the value of the security to be purchased declines before the settlement date. Conversely, the sale of securities on a when-issued or forward commitment basis involves the risk that the value of the securities sold may increase before the settlement date. For the six months ended February 28, 2017, the Core Bond Fund and the Strategic Bond Fund purchased and/or sold when-issued securities.
F. Inflation-Indexed Bonds
Certain Funds may purchase inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is adjusted periodically according to the rate of inflation. Two structures are common. The U.S. Treasury and certain other issuers use a structure that reflects inflation in the principal value of the bond. Other issuers pay out any inflation related accruals as part of a semiannual coupon. The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real interest rates, in turn, are tied to the relationship between nominal interest rates (i.e., stated interest rates) and the rate of inflation. Therefore, if the rate of inflation rises at a faster rate than nominal interest rates, real interest rates (i.e., nominal interest rates minus inflation) might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in nominal interest rates, and short-term increases in inflation may lead to a decline in their value. Coupon payments received from inflation-indexed bonds are recorded in the Statements of Operations as interest income. In addition, any increase or decrease in the principal amount of an inflation-indexed bond will be recorded in the Statements of Operations as an increase or decrease to interest income, even though principal is not paid until maturity.
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VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
G. Repurchase Agreements
The Funds, along with other affiliated registered investment companies, pursuant to procedures adopted by the Board and applicable guidance from the Securities and Exchange Commission (“SEC”), may transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by U.S. Treasury or federal agency obligations.
In a repurchase agreement, the seller of a security agrees to repurchase the security at a mutually agreed-upon time and price, which reflects the effective rate of return for the term of the agreement. For repurchase agreements and joint repurchase agreements, the Series’ custodian takes possession of the collateral pledged for investments in such repurchase agreements (“repo” or collectively “repos”). The underlying collateral is valued daily on a mark to market basis, plus accrued interest to ensure that the value, at the time the agreement is entered into, is equal to at least 102% of the repurchase price, including accrued interest. In the event of default of the obligation to repurchase, a Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by a Fund may be delayed or limited.
H. Investment Securities Loaned
To realize additional income, a Fund, except for Aggressive Growth Lifestyle Fund, Conservative Growth Lifestyle Fund, Moderate Growth Lifestyle Fund, and the Government Money Market II Fund, may lend portfolio securities with a value of up to 30% of its total assets. Securities lending arrangements are generally governed by master securities lending authorization agreements which typically provide the securities lending agent with the right to make loans of a Fund’s available securities to an approved list of borrowers. These master securities lending agreements are considered to be Master Agreements as discussed in the Notes to the Financial Statements. Loans made pursuant to these agreements will be continuously secured by collateral in an amount at least equal to the market value of the securities loaned. Such collateral will be cash, U.S. government securities, or other collateral as deemed appropriate. A Fund may use the cash collateral received to invest in short-term investments. The description of the short-term investments made with cash collateral from securities lending is included in the applicable Fund’s Portfolio of Investments. Loans by a Fund will only be made to broker-dealers deemed by the securities lending agent to be creditworthy and will not be made unless, in the judgment of VALIC, the consideration to be earned from such loans would justify the risk. It is the Series’ policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day. Therefore, the value of the collateral may be temporarily more or less than the value of the securities on loan. Each Fund receives income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower, less expenses associated with the loan. In the event of a borrower default, including if the borrower fails to maintain the requisite amount of collateral, the securities lending agent will terminate all outstanding loans to that particular borrower and the lending Fund is permitted to use the collateral to replace the securities while holding the borrower liable for any excess of replacement cost over collateral. The securities lending agent is also required to indemnify a Fund against certain losses resulting from a borrower default. Although risk is mitigated by the collateral and indemnification, the risks in lending fund securities, as with other extensions of secured credit, include possible delays in receiving additional collateral or in the recovery of the securities or possible loss of rights in the collateral should the borrower fail financially as well as risk of loss in the value of collateral or the value of the investments made with the collateral. Income and fees are recorded in the Statements of Operations as securities lending income. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
I. Securities Transactions, Investment Income, Expenses, Dividends and Distributions to Shareholders
Security transactions are recorded on a trade date basis. Realized gains and losses on the sale of investments are calculated on the identified cost basis. For financial statement purposes, the Funds amortize all premiums and accrete all discounts on fixed income securities.
Securities purchased or sold on a when-issued or forward commitment basis are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities.
Interest income is accrued daily from settlement date except when collection is not expected. Dividend income is recorded on the ex-dividend date except for certain dividends from foreign securities, which are recorded as soon as a Fund is informed after the ex-dividend date. Paydown gains and losses on mortgage and asset-backed securities are recorded as components of interest income on the Statement of Operations. For the Lifestyle Funds, distributions from income from the Underlying Funds, if any, are recorded to income on the ex-dividend date. Distributions from net realized capital gains from the Underlying Funds, if any, are recorded to realized gains on the ex-dividend date.
Funds which earn foreign income and capital gains may be subject to foreign withholding taxes and capital gains taxes at various rates. Under applicable foreign law, a withholding of tax may be imposed on interest, dividends, and capital gains from the sale of foreign securities at various rates. India, Thailand, and certain other countries’ tax regulations require that taxes be paid on capital gains realized by a Fund.
In consideration of recent decisions rendered by the European courts, certain Funds filed reclaims to recover taxes withheld on dividends earned from certain European Union countries during calendar years 2007 through 2015. These filing are subject to various administrative and judicial proceedings within these countries. During the period, the International Opportunities Fund successfully recovered taxes withheld by Finland for the calendar years 2007 and 2008 in the amount of $418,765. Such amounts are disclosed in the Statement of Operations as Dividends, Interest income and Net realized foreign exchange gain (loss) on other assets and liabilities of $528,566, $20,444 and $(130,245), respectively. No other amounts for additional tax reclaims are disclosed in the financial statements due to the uncertainty as to the ultimate resolution of the proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment.
Distributions received from Real Estate Investment Trusts (“REIT”) investments are recharacterized based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available on a timely basis from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The amount recharacterized as ordinary income is recorded as dividend income and the amount recharacterized as capital gain is recorded as realized gain in the Statement of Operations. The amount recharacterized as return of capital is recorded as a reduction to the cost of investments in the Statement of Assets and Liabilities. These recharacterizations are reflected in the accompanying financial statements.
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VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
Expenses common to all Funds are allocated among the Funds based upon relative net assets or other appropriate allocation methods. In all other respects, expenses are charged to each Fund as incurred on a specific identification basis. For the Lifestyle Funds, the expenses included in the accompanying financial statements reflect the expenses of the Lifestyle Funds and do not include any expenses associated with the Underlying Funds.
Dividends from net investment income, if any, are normally paid annually, except for the Government Money Market II Fund, which declares daily and pays monthly. Distributions from net realized capital gains, if any, are normally declared and paid annually. The Funds record dividends and distributions to their shareholders on the ex-dividend date.
The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts at fiscal year end based on their federal tax-basis treatment; temporary differences do not require reclassification. Net assets are not affected by these reclassifications.
Each Fund is considered a separate entity for tax purposes and intends to comply with the requirements of the Internal Revenue Code, as amended, applicable to regulated investment companies and distribute all of its taxable income, including any net capital gains on investments, to its shareholders. Each Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. Therefore, no federal income tax or excise tax provision is required.
The Funds recognize the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained, assuming examination by tax authorities. Management has analyzed each Fund’s tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2013 — 2015 or expected to be taken in each Fund’s 2016 tax return. The Funds are not aware of any tax provisions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. The Funds file U.S. federal and certain state income tax returns. With few exceptions, the Funds are no longer subject to U.S. federal and state tax examinations by tax authorities for tax returns ending before 2013.
J. Foreign Currency Translation
The books and records of the Funds are maintained in U.S. dollars. Assets and liabilities denominated in foreign currencies and commitments under forward foreign currency contracts are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation.
The Funds do not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of securities held at the end of the period. Similarly, the Funds do not isolate the effect of changes in foreign exchange rates from the changes in the market prices of portfolio securities sold during the period.
Realized foreign exchange gains and losses on other assets and liabilities and change in unrealized foreign exchange gains and losses on other assets and liabilities located in the Statements of Operations include realized foreign exchange gains and losses from currency gains or losses between the trade and the settlement dates of securities transactions, the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid and changes in the unrealized foreign exchange gains and losses relating to the other assets and liabilities arising as a result of changes in the exchange rates and realized gains and losses on forward foreign currency contracts.
Note 3 — Advisory Fees and Other Transactions with Affiliates
VALIC serves as investment adviser to VC II. Certain officers and trustees of VC II are officers and directors of VALIC or affiliates of VALIC. VALIC receives from VC II a monthly fee based on each Fund’s average daily net asset value at the following annual rates:
Aggressive Growth Lifestyle Fund | 0.10% | |
Capital Appreciation Fund | 0.55% on first $1 billion | |
0.525% on assets over $1 billion | ||
Conservative Growth Lifestyle Fund | 0.10% | |
Core Bond Fund | 0.50% on the first $200 million | |
0.45% on the next $300 million | ||
0.40% on assets over $500 million | ||
Government Money Market II Fund | 0.25% | |
High Yield Bond Fund | 0.65% on the first $150 million | |
0.60% on the next $350 million | ||
0.55% on assets over $500 million | ||
International Opportunities Fund | 0.90% on the first $100 million | |
0.80% on the next $650 million | ||
0.75% on assets over $750 million | ||
Large Cap Value Fund | 0.50% on the first $500 million | |
0.475% on assets over $500 million | ||
Mid Cap Growth Fund | 0.80% on the first $50 million | |
0.75% on the next $50 million | ||
0.70% on the next $150 million | ||
0.65% on the next $250 million | ||
0.60% on assets over $500 million |
132 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
Mid Cap Value Fund | 0.75% on the first $100 million | |
0.725% on the next $150 million | ||
0.70% on the next $250 million | ||
0.675% on the next $250 million | ||
0.65% on assets over $750 million | ||
Moderate Growth Lifestyle Fund | 0.10% | |
Small Cap Growth Fund | 0.85% on the first $100 million | |
0.80% on assets over $100 million | ||
Small Cap Value Fund | 0.75% on the first $50 million | |
0.65% on assets over $50 million | ||
Socially Responsible Fund | 0.25% on the first $1 billion | |
0.24% on assets over $1 billion | ||
Strategic Bond Fund | 0.60% on the first $200 million | |
0.50% on the next $300 million | ||
0.45% on assets over $500 million |
VALIC has entered into subadvisory agreements with the following:
Delaware Investments Fund Advisers (“Delaware Investments”)—subadviser for a portion of the International Opportunities Fund.
J.P. Morgan Investment Management Inc. (“JPMIM”)—subadviser for the Small Cap Growth Fund and the Small Cap Value Fund.(1)
Janus Capital Management, LLC (“Janus”)—subadviser for a portion of the Large Cap Value Fund.
Massachusetts Financial Services Company (“MFS”)—subadviser for a portion of the International Opportunities Fund.
PineBridge Investments, LLC (“PineBridge”)—subadviser for the Strategic Bond Fund, Core Bond Fund, Aggressive, Moderate and Conservative Growth Lifestyle Funds.
Robeco Investment Management, Inc. d/b/a Boston Partners (“Robeco”)—subadviser for a portion of the Mid Cap Value Fund.
SunAmerica Asset Management, LLC (“SunAmerica”)—subadviser for the Government Money Market II Fund and the Socially Responsible Fund.
The Boston Company Asset Management, LLC (“The Boston Co.”)—subadviser for the Capital Appreciation Fund and a portion of the Large Cap Value Fund.
Wellington Management Company LLP—subadviser for the High Yield Bond Fund and a portion of the Mid Cap Value Fund.
Wells Capital Management Incorporated (“Wells Capital”)—subadviser for the Mid Cap Growth Fund.
(1) | Effective October 29, 2016, J.P. Morgan Investment Management Inc. replaced Wells Capital Management Incorporated as the subadvisor for the Small Cap Value Fund. |
The subadvisers are compensated for their services by VALIC.
VALIC has contractually agreed to waive fees and/or reimburse expenses, if necessary, to keep annual operating expenses at or below the following percentages of each Fund’s average daily net assets through December 31, 2017. For the purposes of waived fee and/or reimbursed expense calculations, annual fund operating expenses shall not include extraordinary expenses (i.e., expenses that are unusual in nature and/or infrequent in occurrence, such as litigation), or acquired fund fees and expenses, brokerage commissions and other transactional expenses relating to the purchase and sale of portfolio securities, interest, taxes and governmental fees, and other expenses not incurred in the ordinary course of the Fund’s business. The contractual expense waivers and fee reimbursements will continue until December 31, 2017, subject to termination by the Board, including a majority of the Trustees who are not interested persons of the Fund or VALIC as defined by Section 2(a)(19) of the 1940 Act (the “Disinterested Trustees”).
Fund |
Expense Limitation |
|||
Aggressive Growth Lifestyle |
0.10 | % | ||
Capital Appreciation |
0.85 | % | ||
Conservative Growth Lifestyle |
0.10 | % | ||
Core Bond |
0.77 | % | ||
Government Money Market II |
0.55 | % | ||
High Yield Bond |
0.96 | % | ||
International Opportunities |
1.00 | % | ||
Large Cap Value |
0.81 | % | ||
Mid Cap Growth |
0.85 | % | ||
Mid Cap Value |
1.05 | % | ||
Moderate Growth Lifestyle |
0.10 | % | ||
Small Cap Growth |
1.16 | % | ||
Small Cap Value |
0.95 | % | ||
Socially Responsible |
0.56 | % | ||
Strategic Bond |
0.89 | % |
133 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
For the six months ended February 28, 2017, pursuant to the contractual expense limitations in the above table, VALIC waived fees and/or reimbursed expenses as follows:
Fund |
Amount |
|||
Aggressive Growth Lifestyle |
$ | 83,224 | ||
Capital Appreciation |
52,771 | |||
Conservative Growth Lifestyle |
65,426 | |||
Core Bond |
99,399 | |||
Government Money Market II |
119,314 | |||
International Opportunities |
598,849 | |||
Large Cap Value |
65,592 | |||
Mid Cap Growth |
180,575 | |||
Moderate Growth Lifestyle |
121,832 | |||
Small Cap Growth |
49,220 | |||
Small Cap Value |
173,527 | |||
Socially Responsible |
157,130 |
VALIC may also voluntarily waive fees and/or reimburse expenses to avoid a negative yield on the Government Money Market II Fund. The voluntary waivers and/or reimbursements may be terminated at any time at the option of VALIC. The exact amount of the voluntary waivers and/or reimbursements may change on a day-to-day basis. There is no guarantee that the Government Money Market II Fund will be able to avoid a negative yield. For the six months ended February 28, 2017, VALIC voluntarily waived fees and/or reimbursed expenses of $62,816 for the Government Money Market II Fund.
VC II, on behalf of each Fund, other than the Lifestyle Funds, has entered into an Administrative Services Agreement with SunAmerica (“Administrator”), an affiliate of the Adviser. SunAmerica receives from each Fund in the Series and VCI, other than the Lifestyle Funds, an annual fee of 0.06% based upon each Fund’s average daily net assets, plus the following Accounting Basis Point Fee†: 0.0075% on the first $75 billion; 0.0060% on the next $25 billion; and 0.0050% in excess of $100 billion. Pursuant to the Administrative Services Agreement, SunAmerica provides administrative services to the Funds, regulatory reporting, internal legal and compliance services, fund accounting and related portfolio accounting services, all necessary office space, equipment, personnel, compensation and facilities for handling the affairs of the Funds and other services. Without limiting the generality of the foregoing, the Administrator (or its appointed service provider): assists with the preparation of prospectuses, statements of additional information, registration statements, and proxy materials; develops and prepares communications to shareholders, including the annual and semi-annual reports to shareholders; coordinates and supervises the preparation and filing of Fund tax returns; assists with the design, development, and operation of the Funds; prepares the Funds’ financial statements; determines the net asset value of the Funds’ shares; supervises the Funds’ transfer agent with respect to the payment of dividends and other distributions to shareholders; and calculates performance data of the Funds. For the six months ended February 28, 2017, the Administrator earned fees as reflected in the Statements of Operations based upon the aforementioned rate.
VC II, on behalf of each Fund, entered into a Master Transfer Agency and Services Agreement with VALIC Retirement Services Company (“VRSCO”), an affiliate of VALIC. VRSCO receives from the Series and VC I an annual fee of $132,510, which is allocated to each Fund in the Series and VC I based on shareholder accounts. Under this agreement, VRSCO provides services which include the issuance and redemption of shares, acting as dividend disbursing agent, and certain shareholder reporting services including confirmation of transactions, statements of account and tax reporting. In addition to the above, VRSCO provides “Blue Sky” registration and reporting in applicable states for each Fund that is sold outside of a variable annuity or variable life contract in order to effect and maintain, as the case may be, including but not limited to, the qualification of shares for sale under the applicable securities laws of such jurisdictions to qualified plans. For the six months ended February 28, 2017, VRSCO earned fees as reflected in the Statement of Operations based upon the aforementioned rate.
VC II, on behalf of each Fund, other than the Lifestyle Funds, has entered into a Shareholder Services Agreement with VALIC. Under the agreement, VALIC provides record keeping, account maintenance, and other administrative and shareholder services for contract owners and participants. VALIC receives from each Fund, other than the Lifestyle Funds, an annual fee of 0.25% based on average daily net assets of the Fund. For the six months ended February 28, 2017, VALIC earned fees as reflected in the Statements of Operations based upon the aforementioned rate.
On January 23, 2001, the Board ratified a Deferred Compensation Plan for its independent trustees who are not officers, directors, or employees of VALIC, or an affiliate of VALIC. The effective date of the plan was January 1, 2001. The first deferred payment was made in March of 2001. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred may be invested in up to three different affiliated mutual funds that are specified in the plan as selected by the trustees. Obligations under the deferred compensation plan represents unsecured claims against the general assets of the Funds. For the six months ended February 28, 2017, VC II has deferred $11,075 of trustee compensation.
134 |
† | Accounting Basis Point Fee is calculated based upon all assets in all registered management investment companies managed and/or administered by the Administrator and VALIC, other than “funds-of-funds” and “feeder funds.” |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
At February 28, 2017, the following affiliates owned outstanding shares of the following Funds:
Holder |
||||||||||||||||||||||||||||
Fund |
American General Life Insurance Co. |
The United States Life Insurance Co. |
VALIC |
VC I Dynamic Allocation Fund |
VC II Aggressive Growth Lifestyle |
VC II Conservative Growth Lifestyle |
VC II Moderate Growth Lifestyle |
|||||||||||||||||||||
Aggressive Growth Lifestyle |
— | % | — | % | 100.00 | % | — | % | — | % | — | % | — | % | ||||||||||||||
Capital Appreciation |
— | — | 43.99 | 7.59 | 20.35 | 4.31 | 23.76 | |||||||||||||||||||||
Conservative Growth Lifestyle |
— | — | 100.00 | — | — | — | — | |||||||||||||||||||||
Core Bond |
— | — | 87.30 | 1.45 | 0.58 | 4.26 | 6.41 | |||||||||||||||||||||
Government Money Market II |
— | — | 100.00 | — | — | — | — | |||||||||||||||||||||
High Yield Bond |
0.03 | — | 74.65 | 0.48 | 5.27 | 6.93 | 12.64 | |||||||||||||||||||||
International Opportunities |
— | — | 93.20 | — | 3.00 | 0.62 | 3.18 | |||||||||||||||||||||
Large Cap Value |
— | — | 87.92 | — | 4.52 | 1.56 | 6.00 | |||||||||||||||||||||
Mid Cap Growth |
— | — | 88.06 | 1.68 | 4.72 | 0.60 | 4.94 | |||||||||||||||||||||
Mid Cap Value |
0.24 | — | 86.53 | 0.20 | 4.54 | 1.86 | 6.63 | |||||||||||||||||||||
Moderate Growth Lifestyle |
— | — | 100.00 | — | — | — | — | |||||||||||||||||||||
Small Cap Growth |
— | — | 76.49 | 3.76 | 10.43 | 1.24 | 8.08 | |||||||||||||||||||||
Small Cap Value |
— | — | 85.94 | 0.69 | 5.05 | 1.64 | 6.68 | |||||||||||||||||||||
Socially Responsible |
0.00 | — | 100.00 | — | — | — | — | |||||||||||||||||||||
Strategic Bond |
0.06 | 0.01 | 72.17 | 0.62 | 4.69 | 9.15 | 13.30 |
As disclosed in the Portfolio of Investments, certain Funds own shares of various VC I or VC II Funds and securities issued by AIG or an affiliate thereof. During the six months ended February 28, 2017, transactions in these securities were as follows:
Aggressive Growth Lifestyle Fund
Security |
Income |
Capital Gain Distribution Received |
Value at 08/31/2016 |
Cost of Purchases† |
Proceeds from Sales |
Realized Gain/(Loss) |
Change in Unrealized Gain/(Loss) |
Value at 02/28/2017 |
||||||||||||||||||||||||
VALIC Co. I Blue Chip Growth Fund |
$ | — | $ | 1,378,148 | $ | 15,321,422 | $ | 1,378,148 | $ | 2,214,368 | $ | 172,281 | $ | (228,975 | ) | $ | 14,428,508 | |||||||||||||||
VALIC Co. I Capital Conservation Fund |
161,455 | 7,864 | 5,985,390 | 3,382,009 | 2,019,291 | (8,167 | ) | (296,439 | ) | 7,043,502 | ||||||||||||||||||||||
VALIC Co. I Dividend Value Fund |
353,073 | 1,525,322 | 17,130,245 | 1,878,395 | — | — | (100,943 | ) | 18,907,697 | |||||||||||||||||||||||
VALIC Co. I Emerging Economies Fund |
222,924 | — | 9,933,574 | 19,212,466 | 16,823,449 | 463,454 | 1,063,692 | 13,849,737 | ||||||||||||||||||||||||
VALIC Co. I Foreign Value Fund |
532,274 | — | 26,622,335 | 532,274 | 977,019 | (65,329 | ) | 1,730,158 | 27,842,419 | |||||||||||||||||||||||
VALIC Co. I Global Real Estate Fund |
1,618,663 | 1,995,020 | 54,356,225 | 4,998,868 | 14,546,705 | (966,347 | ) | (4,832,508 | ) | 39,009,533 | ||||||||||||||||||||||
VALIC Co. I Government Securities Fund |
186,807 | — | 7,401,700 | 3,706,369 | 2,986,229 | (39,531 | ) | (336,262 | ) | 7,746,047 | ||||||||||||||||||||||
VALIC Co. I Inflation Protected Fund |
86,941 | 50,628 | 3,256,539 | 31,339,872 | — | — | 191,314 | 34,787,725 | ||||||||||||||||||||||||
VALIC Co. I International Equities Index Fund |
448,593 | — | 33,545,328 | 448,593 | 17,614,272 | (1,318,743 | ) | 1,643,148 | 16,704,054 | |||||||||||||||||||||||
VALIC Co. I International Growth Fund |
166,270 | — | 17,423,681 | 166,270 | 6,481,237 | (1,139,590 | ) | 1,185,756 | 11,154,880 | |||||||||||||||||||||||
VALIC Co. I Mid Cap Index Fund |
377,158 | 2,582,696 | 26,564,486 | 7,067,135 | — | — | 118,272 | 33,749,893 | ||||||||||||||||||||||||
VALIC Co. I Mid Cap Strategic Growth Fund |
— | 332,788 | 5,997,163 | 332,788 | 1,222,961 | (203,187 | ) | 187,567 | 5,091,370 | |||||||||||||||||||||||
VALIC Co. I Nasdaq-100 Index Fund |
52,150 | 325,415 | 12,357,276 | 377,565 | 5,978,856 | 2,669,001 | (2,171,328 | ) | 7,253,658 | |||||||||||||||||||||||
VALIC Co. I Science & Technology Fund |
— | 420,758 | 7,961,730 | 420,758 | 2,808,422 | 602,542 | (423,465 | ) | 5,753,143 | |||||||||||||||||||||||
VALIC Co. I Small Cap Index Fund |
446,577 | 2,131,259 | 29,618,264 | 11,378,371 | — | — | 1,346,372 | 42,343,007 | ||||||||||||||||||||||||
VALIC Co. I Small Cap Special Values Fund |
153,242 | 984,341 | 14,152,320 | 1,137,582 | — | — | 546,503 | 15,836,405 | ||||||||||||||||||||||||
VALIC Co. I Stock Index Fund |
339,172 | 994,903 | 20,019,331 | 3,736,342 | 1,770,988 | (84,097 | ) | 674,674 | 22,575,262 | |||||||||||||||||||||||
VALIC Co. I Value Fund |
61,529 | — | 3,395,396 | 61,528 | — | — | 246,542 | 3,703,466 | ||||||||||||||||||||||||
VALIC Co. II Capital Appreciation Fund |
— | — | 16,828,047 | — | — | — | 1,094,507 | 17,922,554 | ||||||||||||||||||||||||
VALIC Co. II Core Bond Fund |
— | — | 31,650,665 | — | 25,211,288 | (163,527 | ) | (294,868 | ) | 5,980,982 | ||||||||||||||||||||||
VALIC Co. II High Yield Bond Fund |
— | — | 41,823,055 | — | 10,347,928 | (124,603 | ) | 1,685,147 | 33,035,671 | |||||||||||||||||||||||
VALIC Co. II International Opportunities Fund |
— | — | 18,032,426 | — | 1,283,273 | (6,551 | ) | 304,555 | 17,047,157 | |||||||||||||||||||||||
VALIC Co. II Large Cap Value Fund |
— | — | 9,847,452 | — | — | — | 1,369,336 | 11,216,788 | ||||||||||||||||||||||||
VALIC Co. II Mid Cap Growth Fund |
— | — | 6,995,995 | — | 1,677,632 | 125,924 | 293,578 | 5,737,865 | ||||||||||||||||||||||||
VALIC Co. II Mid Cap Value Fund |
— | — | 33,148,398 | 11,758,684 | — | — | 3,813,549 | 48,720,631 | ||||||||||||||||||||||||
VALIC Co. II Small Cap Growth Fund |
— | — | 10,481,418 | — | — | — | 1,181,004 | 11,662,422 | ||||||||||||||||||||||||
VALIC Co. II Small Cap Value Fund |
— | — | 21,141,495 | 3,595,281 | — | — | 3,097,157 | 27,833,933 |
135 |
† | Includes reinvestment of distributions paid. |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
Aggressive Growth Lifestyle Fund (continued)
Security |
Income |
Capital Gain Distribution Received |
Value at 08/31/2016 |
Cost of Purchases† |
Proceeds from Sales |
Realized Gain/(Loss) |
Change in Unrealized Gain/(Loss) |
Value at 02/28/2017 |
||||||||||||||||||||||||
VALIC Co. II Strategic Bond Fund |
$ | — | $ | — | $ | 33,848,518 | $ | 12,155,521 | $ | 7,601,203 | $ | (215,905 | ) | $ | 618,132 | $ | 38,805,063 | |||||||||||||||
VALIC Co. I International Government Bond Fund |
— | — | 531,777 | 7,435,978 | — | — | (338,065 | ) | 7,629,690 | |||||||||||||||||||||||
$ | 5,206,828 | $ | 12,729,142 | $ | 535,371,651 | $ | 126,500,797 | $ | 121,565,121 | $ | (302,375 | ) | $ | 13,368,110 | $ | 553,373,062 | ||||||||||||||||
Conservative Growth Lifestyle Fund
Security |
Income |
Capital Gain Distribution Received |
Value at 08/31/2016 |
Cost of Purchases† |
Proceeds from Sales |
Realized Gain/(Loss) |
Change in Unrealized Gain/(Loss) |
Value at 02/28/2017 |
||||||||||||||||||||||||
VALIC Co. I Blue Chip Growth Fund |
$ | — | $ | 167,310 | $ | 2,326,865 | $ | 167,310 | $ | 745,512 | $ | (65,455 | ) | $ | 68,443 | $ | 1,751,651 | |||||||||||||||
VALIC Co. I Capital Conservation Fund |
287,081 | 13,983 | 13,460,918 | 4,825,568 | 5,219,249 | 47,901 | (591,186 | ) | 12,523,952 | |||||||||||||||||||||||
VALIC Co. I Dividend Value Fund |
146,531 | 633,033 | 7,109,322 | 779,563 | — | — | (41,893 | ) | 7,846,992 | |||||||||||||||||||||||
VALIC Co. I Emerging Economies Fund |
73,806 | — | 1,540,790 | 10,590,900 | 8,344,756 | 180,320 | 424,095 | 4,391,349 | ||||||||||||||||||||||||
VALIC Co. I Foreign Value Fund |
117,712 | — | 11,259,806 | 117,712 | 5,874,131 | (831,012 | ) | 1,484,973 | 6,157,348 | |||||||||||||||||||||||
VALIC Co. I Global Real Estate Fund |
534,116 | 658,304 | 19,440,502 | 1,192,420 | 5,750,242 | (700,969 | ) | (1,309,599 | ) | 12,872,112 | ||||||||||||||||||||||
VALIC Co. I Government Securities Fund |
144,952 | — | 11,452,787 | 1,629,221 | 7,233,541 | (278,694 | ) | (191,503 | ) | 5,378,270 | ||||||||||||||||||||||
VALIC Co. I Inflation Protected Fund |
76,938 | 44,803 | 9,978,232 | 20,701,579 | — | — | 105,466 | 30,785,277 | ||||||||||||||||||||||||
VALIC Co. I International Equities Index Fund |
137,558 | — | 15,142,320 | 137,558 | 10,324,605 | (726,595 | ) | 893,501 | 5,122,179 | |||||||||||||||||||||||
VALIC Co. I International Government Bond Fund |
— | — | 329,674 | 7,868,183 | — | — | (324,251 | ) | 7,873,606 | |||||||||||||||||||||||
VALIC Co. I International Growth Fund |
30,883 | — | 6,337,605 | 30,883 | 4,249,869 | (686,220 | ) | 639,513 | 2,071,912 | |||||||||||||||||||||||
VALIC Co. I Mid Cap Index Fund |
111,021 | 760,248 | 2,386,633 | 8,041,150 | — | — | (412,300 | ) | 10,015,483 | |||||||||||||||||||||||
VALIC Co. I Mid Cap Strategic Growth Fund |
— | 23,714 | 671,931 | 23,714 | 335,484 | (81,820 | ) | 84,458 | 362,799 | |||||||||||||||||||||||
VALIC Co. I Nasdaq-100 Index Fund |
5,481 | 34,202 | 679,983 | 39,683 | — | — | 42,713 | 762,379 | ||||||||||||||||||||||||
VALIC Co. I Science & Technology Fund |
— | 55,747 | 689,268 | 55,747 | — | — | 17,227 | 762,242 | ||||||||||||||||||||||||
VALIC Co. I Small Cap Index Fund |
106,449 | 508,019 | 5,475,724 | 4,462,125 | — | — | 155,278 | 10,093,127 | ||||||||||||||||||||||||
VALIC Co. I Small Cap Special Values Fund |
62,060 | 398,637 | 5,731,386 | 460,696 | — | 1 | 221,322 | 6,413,405 | ||||||||||||||||||||||||
VALIC Co. I Stock Index Fund |
27,275 | 80,005 | 2,047,065 | 107,280 | 398,974 | 5,149 | 54,873 | 1,815,393 | ||||||||||||||||||||||||
VALIC Co. I Value Fund |
15,421 | — | 851,011 | 15,421 | — | — | 61,793 | 928,225 | ||||||||||||||||||||||||
VALIC Co. II Capital Appreciation Fund |
— | 3,560,571 | — | — | — | 231,581 | 3,792,152 | |||||||||||||||||||||||||
VALIC Co. II Core Bond Fund |
— | 66,368,944 | — | 21,667,586 | 340,331 | (1,242,808 | ) | 43,798,881 | ||||||||||||||||||||||||
VALIC Co. II High Yield Bond Fund |
— | 45,840,032 | — | 4,174,026 | 292,523 | 1,504,706 | 43,463,235 | |||||||||||||||||||||||||
VALIC Co. II International Opportunities Fund |
— | 7,246,530 | — | 3,696,379 | 24,679 | (69,829 | ) | 3,505,001 | ||||||||||||||||||||||||
VALIC Co. II Large Cap Value Fund |
— | 3,402,227 | — | — | — | 473,096 | 3,875,323 | |||||||||||||||||||||||||
VALIC Co. II Mid Cap Growth Fund |
— | 665,361 | — | — | — | 56,896 | 722,257 | |||||||||||||||||||||||||
VALIC Co. II Mid Cap Value Fund |
— | 7,779,257 | 11,087,630 | — | — | 1,109,317 | 19,976,204 | |||||||||||||||||||||||||
VALIC Co. II Small Cap Growth Fund |
— | 542,833 | 726,999 | — | — | 117,698 | 1,387,530 | |||||||||||||||||||||||||
VALIC Co. II Small Cap Value Fund |
— | 7,065,831 | 969,475 | — | — | 1,033,313 | 9,068,619 | |||||||||||||||||||||||||
VALIC Co. II Strategic Bond Fund |
— | 69,060,359 | 9,307,930 | 3,465,841 | (187,152 | ) | 947,992 | 75,663,288 | ||||||||||||||||||||||||
$ | 1,877,284 | $ | 3,378,005 | $ | 328,443,767 | $ | 83,338,747 | $ | 81,480,195 | $ | (2,667,013 | ) | $ | 5,544,885 | $ | 333,180,191 | ||||||||||||||||
Moderate Growth Lifestyle Fund
Security |
Income |
Capital Gain Distribution Received |
Value at 08/31/2016 |
Cost of Purchases† |
Proceeds from Sales |
Realized Gain/(Loss) |
Unrealized Gain/(Loss) |
Value at 02/28/2017 |
||||||||||||||||||||||||
VALIC Co. I Blue Chip Growth Fund |
$ | — | $ | 1,596,942 | $ | 15,199,126 | $ | 1,596,943 | $ | — | $ | — | $ | (76,901 | ) | $ | 16,719,168 | |||||||||||||||
VALIC Co. I Capital Conservation Fund |
595,887 | 29,025 | 23,964,652 | 9,351,621 | 6,143,134 | (24,910 | ) | (1,152,510 | ) | 25,995,719 | ||||||||||||||||||||||
VALIC Co. I Dividend Value Fund |
471,333 | 2,036,219 | 22,867,915 | 2,507,552 | — | — | (134,753 | ) | 25,240,714 | |||||||||||||||||||||||
VALIC Co. I Emerging Economies Fund |
226,614 | — | 9,422,600 | 23,141,922 | 21,938,495 | 606,451 | 1,125,178 | 12,357,656 | ||||||||||||||||||||||||
VALIC Co. I Foreign Value Fund |
529,911 | — | 29,489,789 | 529,911 | 4,186,055 | (334,113 | ) | 2,219,243 | 27,718,775 | |||||||||||||||||||||||
VALIC Co. I Global Real Estate Fund |
1,904,561 | 2,347,394 | 80,198,117 | 4,251,956 | 30,687,758 | (2,505,958 | ) | (5,356,700 | ) | 45,899,657 | ||||||||||||||||||||||
VALIC Co. I Government Securities Fund |
322,195 | — | 12,651,446 | 6,927,203 | 6,675,888 | (220,633 | ) | (439,844 | ) | 12,242,284 | ||||||||||||||||||||||
VALIC Co. I Inflation Protected Fund |
158,741 | 92,439 | 8,429,373 | 54,716,370 | — | — | 371,241 | 63,516,984 |
136 |
† | Includes reinvestment of distributions paid. |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
Moderate Growth Lifestyle Fund (continued)
Security |
Income |
Capital Gain Distribution Received |
Value at 08/31/2016 |
Cost of Purchases† |
Proceeds from Sales |
Realized Gain/(Loss) |
Unrealized Gain/(Loss) |
Value at 02/28/2017 |
||||||||||||||||||||||||
VALIC Co. I International Equities Index Fund |
$ | 478,653 | $ | — | $ | 38,077,630 | $ | 478,653 | $ | 21,159,167 | $ | (1,213,341 | ) | $ | 1,639,617 | $ | 17,823,392 | |||||||||||||||
VALIC Co. I International Government Bond Fund |
— | — | 840,378 | 9,735,408 | — | — | (465,516 | ) | 10,110,270 | |||||||||||||||||||||||
VALIC Co. I International Growth Fund |
132,857 | — | 23,502,940 | 132,857 | 14,585,645 | (2,637,739 | ) | 2,500,777 | 8,913,190 | |||||||||||||||||||||||
VALIC Co. I Mid Cap Index Fund |
580,321 | 3,973,905 | 34,948,351 | 15,646,329 | — | — | (303,694 | ) | 50,290,986 | |||||||||||||||||||||||
VALIC Co. I Mid Cap Strategic Growth Fund |
— | 331,256 | 4,731,566 | 331,255 | — | — | 5,100 | 5,067,921 | ||||||||||||||||||||||||
VALIC Co. I Nasdaq-100 Index Fund |
59,445 | 370,938 | 7,374,763 | 430,383 | — | — | 463,240 | 8,268,386 | ||||||||||||||||||||||||
VALIC Co. I Science & Technology Fund |
— | 555,062 | 6,862,935 | 555,062 | — | — | 171,521 | 7,589,518 | ||||||||||||||||||||||||
VALIC Co. I Small Cap Index Fund |
658,094 | 3,140,711 | 43,777,211 | 16,684,657 | — | — | 1,936,529 | 62,398,397 | ||||||||||||||||||||||||
VALIC Co. I Small Cap Special Values Fund |
235,437 | 1,512,320 | 21,192,799 | 2,363,958 | — | — | 773,964 | 24,330,721 | ||||||||||||||||||||||||
VALIC Co. I Stock Index Fund |
253,946 | 744,907 | 21,075,631 | 998,853 | 5,754,093 | (35,292 | ) | 617,528 | 16,902,627 | |||||||||||||||||||||||
VALIC Co. I Value Fund |
77,462 | — | 4,274,657 | 77,462 | — | — | 310,385 | 4,662,504 | ||||||||||||||||||||||||
VALIC Co. II Capital Appreciation Fund |
— | — | 19,651,753 | — | — | — | 1,278,162 | 20,929,915 | ||||||||||||||||||||||||
VALIC Co. II Core Bond Fund |
— | — | 93,570,680 | 7,040,573 | 33,165,495 | 110,054 | (1,551,166 | ) | 66,004,646 | |||||||||||||||||||||||
VALIC Co. II High Yield Bond Fund |
— | — | 91,118,805 | — | 15,425,840 | 616,950 | 2,892,039 | 79,201,954 | ||||||||||||||||||||||||
VALIC Co. II International Opportunities Fund |
— | — | 19,079,039 | — | 1,296,401 | (29,464 | ) | 323,587 | 18,076,761 | |||||||||||||||||||||||
VALIC Co. II Large Cap Value Fund |
— | — | 13,077,261 | — | — | — | 1,818,457 | 14,895,718 | ||||||||||||||||||||||||
VALIC Co. II Mid Cap Growth Fund |
— | — | 5,523,801 | — | — | — | 472,344 | 5,996,145 | ||||||||||||||||||||||||
VALIC Co. II Mid Cap Value Fund |
— | — | 48,763,345 | 16,888,280 | — | — | 5,573,921 | 71,225,546 | ||||||||||||||||||||||||
VALIC Co. II Small Cap Growth Fund |
— | — | 7,824,110 | 306,192 | — | — | 905,400 | 9,035,702 | ||||||||||||||||||||||||
VALIC Co. II Small Cap Value Fund |
— | — | 25,081,035 | 8,185,026 | — | — | 3,562,082 | 36,828,143 | ||||||||||||||||||||||||
VALIC Co. II Strategic Bond Fund |
— | — | 113,109,023 | 9,479,974 | 13,781,016 | (353,313 | ) | 1,443,327 | 109,897,995 | |||||||||||||||||||||||
$ | 6,685,457 | $ | 16,731,118 | $ | 845,680,731 | $ | 192,358,400 | $ | 174,798,987 | $ | (6,021,308 | ) | $ | 20,922,558 | $ | 878,141,394 | ||||||||||||||||
† | Includes reinvestment of distributions paid. |
Note 4 — Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term investments during the six months ended February 28, 2017 were as follows:
Fund |
Purchases of Investment Securities (Excluding U.S. Government Securities) |
Sales of Investment Securities (Excluding U.S. Government Securities) |
Purchase of U.S. Government Securities |
Sales of U.S. Government Securities |
||||||||||||
Aggressive Growth Lifestyle |
$ | 108,564,827 | $ | 121,565,121 | $ | — | $ | — | ||||||||
Capital Appreciation |
28,769,291 | 33,963,948 | — | — | ||||||||||||
Conservative Growth Lifestyle |
78,083,458 | 81,480,195 | — | — | ||||||||||||
Core Bond |
226,821,821 | 202,506,305 | 209,605,254 | 367,457,104 | ||||||||||||
Government Money Market II |
— | — | — | — | ||||||||||||
High Yield Bond |
172,795,724 | 127,489,250 | — | — | ||||||||||||
International Opportunities |
199,351,563 | 237,665,028 | — | — | ||||||||||||
Large Cap Value |
94,991,645 | 107,141,266 | — | — | ||||||||||||
Mid Cap Growth |
48,029,099 | 57,424,706 | — | — | ||||||||||||
Mid Cap Value |
240,972,148 | 266,732,418 | — | — | ||||||||||||
Moderate Growth Lifestyle |
168,941,825 | 174,798,987 | — | — | ||||||||||||
Small Cap Growth |
15,983,801 | 15,162,913 | — | — | ||||||||||||
Small Cap Value |
281,663,618 | 288,695,774 | — | — | ||||||||||||
Socially Responsible |
— | 3,228,228 | — | — | ||||||||||||
Strategic Bond |
365,135,488 | 274,366,790 | 293,368,278 | 362,000,250 |
Note 5 — Federal Income Taxes
The following details the tax basis of distributions as well as the components of distributable earnings. The tax basis components of distributable earnings differ from the amounts reflected in the Statements of Assets and Liabilities by temporary book/tax differences primarily arising from wash sales, post October losses, investments in passive foreign investment companies, treatment of deferred compensation, late year ordinary losses, straddles, investments in partnerships, treatment of defaulted securities and derivative transactions.
137 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
The information in the following table is presented on the basis of cost for Federal Income Tax purposes at February 28, 2017.
Fund |
Identified Cost of Investments Owned |
Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) |
||||||||||||
Aggressive Growth Lifesyle |
$ | 530,260,881 | $ | 36,175,890 | $ | (13,063,709 | ) | $ | 23,112,181 | |||||||
Capital Appreciation |
70,711,199 | 18,304,210 | (387,183 | ) | 17,917,027 | |||||||||||
Conservative Growth Lifestyle |
328,944,419 | 9,738,725 | (5,502,953 | ) | 4,235,772 | |||||||||||
Core Bond |
1,051,028,857 | 16,509,489 | (11,521,474 | ) | 4,988,015 | |||||||||||
Government Money Market II |
141,988,524 | — | — | — | ||||||||||||
High Yield Bond |
660,543,531 | 26,057,649 | (10,207,789 | ) | 15,849,860 | |||||||||||
International Opportunities |
510,265,804 | 100,442,012 | (17,355,445 | ) | 83,086,567 | |||||||||||
Large Cap Value |
219,419,962 | 34,738,861 | (3,328,152 | ) | 31,410,709 | |||||||||||
Mid Cap Growth |
105,862,503 | 17,721,607 | (1,569,827 | ) | 16,151,780 | |||||||||||
Mid Cap Value |
911,380,511 | 197,384,273 | (29,060,964 | ) | 168,323,309 | |||||||||||
Moderate Growth Lifestyle |
844,842,974 | 48,419,938 | (15,121,518 | ) | 33,298,420 | |||||||||||
Small Cap Growth |
106,125,510 | 25,246,167 | (5,990,284 | ) | 19,255,883 | |||||||||||
Small Cap Value |
483,281,898 | 115,356,189 | (20,025,434 | ) | 95,330,755 | |||||||||||
Socially Responsible |
619,135,661 | 216,586,447 | (18,828,146 | ) | 197,758,301 | |||||||||||
Strategic Bond |
860,983,059 | 18,424,567 | (12,247,193 | ) | 6,177,374 |
The tax character of distributions paid may differ from the Statement of Changes in Net Assets due to short-term gains treated as ordinary income distributions for tax purposes.
The tax basis distributable earnings at August 31, 2016 and the tax character of distributions paid during the year ended August 31, 2016 were as follows:
Distributable Earnings |
Tax Distributions |
|||||||||||||||||||
For the year ended August 31, 2016 |
||||||||||||||||||||
Fund |
Ordinary Income |
Long-term Capital Gains and Other Losses |
Unrealized Appreciation (Depreciation)@ |
Ordinary Income |
Long-Term Capital Gains |
|||||||||||||||
Aggressive Growth Lifestyle |
$ | 10,175,053 | $ | 30,381,169 | $ | 9,744,071 | $ | 13,270,729 | $ | 34,330,762 | ||||||||||
Capital Appreciation |
444,641 | 7,972,350 | 15,628,472 | 312,016 | 7,803,191 | |||||||||||||||
Conservative Growth Lifestyle |
8,581,634 | 2,821,833 | (1,309,113 | ) | 9,991,705 | 11,963,320 | ||||||||||||||
Core Bond |
27,768,658 | (1,908,578 | ) | 36,300,861 | 26,673,576 | — | ||||||||||||||
Government Money Market II |
6,406 | — | — | 16,693 | — | |||||||||||||||
High Yield Bond |
27,551,970 | (34,993,409 | ) | 7,066,358 | 23,145,260 | — | ||||||||||||||
International Opportunities |
7,790,735 | (93,325,579 | ) | 89,320,198 | 6,570,282 | — | ||||||||||||||
Large Cap Value |
3,049,306 | (17,818,892 | ) | 18,661,358 | 2,372,082 | — | ||||||||||||||
Mid Cap Growth |
— | (2,327,330 | ) | 12,642,604 | — | 9,306,137 | ||||||||||||||
Mid Cap Value |
6,514,472 | 62,136,734 | 112,587,016 | 2,541,034 | 130,705,432 | |||||||||||||||
Moderate Growth Lifestyle |
18,966,348 | 34,930,260 | 12,375,862 | 21,298,906 | 41,294,498 | |||||||||||||||
Small Cap Growth |
— | 6,502,058 | 9,857,273 | 69,228 | 9,838,071 | |||||||||||||||
Small Cap Value |
5,369,680 | 19,109,755 | 55,204,215 | 10,495,948 | 52,562,489 | |||||||||||||||
Socially Responsible |
12,252,457 | 52,201,632 | 140,081,780 | 10,420,982 | 45,692,358 | |||||||||||||||
Strategic Bond |
28,271,122 | (10,351,324 | ) | 16,957,611 | 32,224,009 | 917,775 |
@ | Unrealized appreciation (depreciation) includes amounts for derivatives and other assets and liabilities denominated in foreign currency. |
138 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
As of August 31, 2016, for Federal income tax purposes, the Funds indicated below have capital loss carryforwards, which expire in the year indicated, which are available to offset future capital gains, if any:
Capital Loss Carryforward† |
Unlimited† |
|||||||||||
Fund |
2018 |
ST |
LT |
|||||||||
Aggressive Growth Lifestyle |
$ | — | $ | — | $ | — | ||||||
Capital Appreciation |
— | — | — | |||||||||
Conservative Growth Lifestyle |
— | — | — | |||||||||
Core Bond |
— | — | 1,908,578 | |||||||||
Government Money Market II |
— | — | — | |||||||||
High Yield Bond |
25,316,663 | 6,794,791 | 2,881,955 | |||||||||
International Opportunities |
93,325,579 | — | — | |||||||||
Large Cap Value |
17,818,892 | — | — | |||||||||
Mid Cap Growth |
— | 2,327,330 | — | |||||||||
Mid Cap Value |
— | — | — | |||||||||
Moderate Growth Lifestyle |
— | — | — | |||||||||
Small Cap Growth |
— | — | — | |||||||||
Small Cap Value |
— | — | — | |||||||||
Socially Responsible |
— | — | — | |||||||||
Strategic Bond |
— | 3,364,943 | 6,986,381 |
† | On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. Under the Act, a Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term losses rather than being considered all short-term as under previous law. |
Under the current tax law, capital losses realized after October 31 and late year ordinary losses may be deferred and treated as occurring on the first day of the following year. For the fiscal year ended August 31, 2016, the Funds elected to defer late year ordinary losses and post October capital losses as follows:
Fund |
Deferred Late Year Ordinary Loss |
Deferred
Post-October Short-Term Capital Loss |
Deferred
Post-October Long-Term Capital Loss |
|||||||||
Aggressive Growth Lifestyle |
$ | — | $ | — | $ | — | ||||||
Capital Appreciation |
— | 2,395,637 | — | |||||||||
Conservative Growth Lifestyle |
— | 21,888 | — | |||||||||
Core Bond |
— | (3,800,643 | ) | 5,482,755 | ||||||||
Government Money Market II |
— | — | — | |||||||||
High Yield Bond |
— | 1,421,111 | 10,857,666 | |||||||||
International Opportunities |
— | 13,144,487 | — | |||||||||
Large Cap Value |
— | 1,941,433 | — | |||||||||
Mid Cap Growth |
183,117 | 5,238,470 | (4,934,885 | ) | ||||||||
Mid Cap Value |
— | 9,057,391 | — | |||||||||
Moderate Growth Lifestyle |
— | — | — | |||||||||
Small Cap Growth |
140,096 | 1,640,601 | — | |||||||||
Small Cap Value |
307 | 9,069,947 | — | |||||||||
Socially Responsible |
— | — | — | |||||||||
Strategic Bond |
886,936 | 1,443,622 | 16,407,599 |
139 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
Note 6 — Capital Share Transactions
Transactions in capital shares of each class of each Fund were as follows:
Aggressive Growth Lifestyle |
Capital Appreciation |
|||||||||||||||||||||||||||||||
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
|||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Shares sold |
1,182,678 | $ | 12,531,257 | 2,529,023 | $ | 26,519,694 | 88,074 | $ | 1,432,115 | 165,944 | $ | 2,726,232 | ||||||||||||||||||||
Reinvested dividends |
— | — | 4,837,550 | 47,601,491 | — | — | 527,990 | 8,115,207 | ||||||||||||||||||||||||
Shares redeemed |
(2,397,367 | ) | (25,216,251 | ) | (3,663,417 | ) | (38,225,556 | ) | (229,502 | ) | (3,666,559 | ) | (394,882 | ) | (6,423,847 | ) | ||||||||||||||||
Net increase (decrease) |
(1,214,689 | ) | $ | (12,684,994 | ) | 3,703,156 | $ | 35,895,629 | (141,428 | ) | $ | (2,234,444 | ) | 299,052 | $ | 4,417,592 | ||||||||||||||||
Conservative Growth Lifestyle |
Core Bond |
|||||||||||||||||||||||||||||||
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
|||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Shares sold |
998,825 | $ | 11,791,103 | 1,704,814 | $ | 20,114,374 | 5,220,436 | $ | 58,041,965 | 29,384,378 | $ | 324,369,615 | ||||||||||||||||||||
Reinvested dividends |
— | — | 1,934,363 | 21,955,025 | — | — | 2,420,470 | 26,673,576 | ||||||||||||||||||||||||
Shares redeemed |
(1,266,416 | ) | (14,986,972 | ) | (3,130,108 | ) | (37,003,004 | ) | (19,251,400 | ) | (213,629,536 | ) | (22,860,308 | ) | (253,759,878 | ) | ||||||||||||||||
Net increase (decrease) |
(267,591 | ) | $ | (3,195,869 | ) | 509,069 | $ | 5,066,395 | (14,030,964 | ) | $ | (155,587,571 | ) | 8,944,540 | $ | 97,283,313 | ||||||||||||||||
Government Money Market II |
High Yield Bond |
|||||||||||||||||||||||||||||||
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
|||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Shares sold |
26,002,311 | $ | 26,002,311 | 72,393,205 | $ | 72,393,205 | 8,983,484 | $ | 68,459,718 | 19,111,895 | $ | 140,865,271 | ||||||||||||||||||||
Reinvested dividends |
13,912 | 13,912 | 16,693 | 16,693 | — | — | 3,241,633 | 23,145,260 | ||||||||||||||||||||||||
Shares redeemed |
(32,399,200 | ) | (32,399,200 | ) | (91,029,058 | ) | (91,029,058 | ) | (7,607,908 | ) | (58,401,278 | ) | (7,537,158 | ) | (54,445,820 | ) | ||||||||||||||||
Net increase (decrease) |
(6,382,977 | ) | $ | (6,382,977 | ) | (18,619,160 | ) | $ | (18,619,160 | ) | 1,375,576 | $ | 10,058,440 | 14,816,370 | $ | 109,564,711 | ||||||||||||||||
International Opportunities |
Large Cap Value |
|||||||||||||||||||||||||||||||
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
|||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Shares sold |
306,118 | $ | 4,747,257 | 2,689,365 | $ | 41,012,286 | 500,079 | $ | 9,953,471 | 2,348,522 | $ | 41,070,164 | ||||||||||||||||||||
Reinvested dividends |
— | — | 426,088 | 6,570,282 | — | — | 136,483 | 2,372,082 | ||||||||||||||||||||||||
Shares redeemed |
(2,700,010 | ) | (42,405,335 | ) | (5,403,603 | ) | (83,905,951 | ) | (1,202,858 | ) | (23,363,689 | ) | (1,278,767 | ) | (22,123,285 | ) | ||||||||||||||||
Net increase (decrease) |
(2,393,892 | ) | $ | (37,658,078 | ) | (2,288,150 | ) | $ | (36,323,383 | ) | (702,779 | ) | $ | (13,410,218 | ) | 1,206,238 | $ | 21,318,961 | ||||||||||||||
Mid Cap Growth |
Mid Cap Value |
|||||||||||||||||||||||||||||||
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
|||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Shares sold |
136,645 | $ | 1,183,916 | 931,126 | $ | 7,915,190 | 2,397,389 | $ | 51,817,427 | 2,878,053 | $ | 58,872,960 | ||||||||||||||||||||
Reinvested dividends |
— | — | 1,179,485 | 9,306,137 | — | — | 6,976,255 | 133,246,466 | ||||||||||||||||||||||||
Shares redeemed |
(1,186,317 | ) | (10,084,184 | ) | (5,279,491 | ) | (43,276,809 | ) | (3,663,441 | ) | (79,031,677 | ) | (3,537,996 | ) | (75,149,064 | ) | ||||||||||||||||
Net increase (decrease) |
(1,049,672 | ) | $ | (8,900,268 | ) | (3,168,880 | ) | $ | (26,055,482 | ) | (1,266,052 | ) | $ | (27,214,250 | ) | 6,316,312 | $ | 116,970,362 | ||||||||||||||
140 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
Moderate Growth Lifestyle |
Small Cap Growth |
|||||||||||||||||||||||||||||||
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
|||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Shares sold |
1,679,872 | $ | 23,650,531 | 3,284,540 | $ | 45,784,397 | 526,742 | $ | 7,881,009 | 476,646 | $ | 6,587,220 | ||||||||||||||||||||
Reinvested dividends |
— | — | 4,706,271 | 62,593,404 | — | — | 826,986 | 9,907,299 | ||||||||||||||||||||||||
Shares redeemed |
(2,154,672 | ) | (30,478,595 | ) | (4,064,492 | ) | (56,364,059 | ) | (484,053 | ) | (7,041,083 | ) | (1,453,590 | ) | (20,128,160 | ) | ||||||||||||||||
Net increase (decrease) |
(474,800 | ) | $ | (6,828,064 | ) | 3,926,319 | $ | 52,013,742 | 42,689 | $ | 839,926 | (149,958 | ) | $ | (3,633,641 | ) | ||||||||||||||||
Small Cap Value |
Socially Responsible |
|||||||||||||||||||||||||||||||
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
|||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Shares sold |
1,545,407 | $ | 23,674,434 | 4,061,698 | $ | 55,420,760 | 1,127,125 | $ | 22,004,056 | 1,163,692 | $ | 22,038,052 | ||||||||||||||||||||
Reinvested dividends |
— | — | 5,101,815 | 63,058,437 | — | — | 3,084,846 | 56,113,340 | ||||||||||||||||||||||||
Shares redeemed |
(3,928,126 | ) | (59,360,736 | ) | (6,081,367 | ) | (82,041,116 | ) | (2,044,003 | ) | (40,229,036 | ) | (4,041,692 | ) | (76,281,649 | ) | ||||||||||||||||
Net increase (decrease) |
(2,382,719 | ) | $ | (35,686,302 | ) | 3,082,146 | $ | 36,438,081 | (916,878 | ) | $ | (18,224,980 | ) | 206,846 | $ | 1,869,743 | ||||||||||||||||
Strategic Bond |
||||||||||||||||||||||||||||||||
For the period ended February 28, 2017 (unaudited) |
For the year ended August 31, 2016 |
|||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
Shares sold |
3,730,048 | $ | 41,894,937 | 9,365,661 | $ | 102,893,415 | ||||||||||||||||||||||||||
Reinvested dividends |
— | — | 3,063,011 | 33,141,784 | ||||||||||||||||||||||||||||
Shares redeemed |
(4,213,298 | ) | (47,366,176 | ) | (10,873,519 | ) | (119,117,147 | ) | ||||||||||||||||||||||||
Net increase (decrease) |
(483,250 | ) | $ | (5,471,239 | ) | 1,555,153 | $ | 16,918,052 | ||||||||||||||||||||||||
Note 7 — Expense Reductions
Through expense offset arrangements resulting from broker commission recapture, a portion of the expenses of certain Funds have been reduced. For the six months ended February 28, 2017, the amount of expense reductions received by each Fund used to offset non-affiliated expenses are reflected as Fees paid indirectly in the Statement of Operations.
Note 8 — Investment Concentration
The High Yield Bond Fund’s investment in high yield securities, whether rated or unrated, may be considered speculative and subject to greater market fluctuations and risk of loss of income and principal than lower-yielding, higher-rated, fixed-income securities. The risk of loss due to default by the issuer may be significantly greater for the holders of high yield securities, because such securities are generally unsecured and are often subordinated to other creditors of the issuer.
The Funds may invest in obligations issued by agencies and instrumentalities of the U.S. Government that may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so, and if the issuer defaults, a fund holding securities of such issuer might not be able to recover its investments from the U.S. Government. As a result of the Core Bond Fund, Government Money Market II Fund and Strategic Bond Fund’s concentration in such investments, these funds may be subject to risks associated with the U.S. Government agencies or instrumentalities.
The International Opportunities Fund invests internationally, including in “emerging market” countries. Emerging market securities involve risks not typically associated with investing in securities of issuers in more developed markets. The markets of emerging market countries are typically more volatile and potentially less liquid than more developed countries. These securities may be denominated in currencies other than U.S. dollars. While investing internationally may reduce portfolio risk by increasing the diversification of portfolio investments, the value of the investment may be affected by fluctuating currency values, changing local and regional economic, political and social conditions, and greater market volatility.
Each Fund, except the Government Money Market II Fund, the Lifestyle Funds and the Small Cap Value Fund, may invest in international bonds, which include U.S. dollar-denominated bonds issued by foreign corporations for which the primary trading market is in the United States (“Yankee Bonds”), or for which the primary trading market is abroad (“Euro Bonds”). International bonds may involve special risks and considerations not typically associated with investing in U.S. companies, including differences in accounting, auditing and financial reporting standards; generally higher commission rates on foreign portfolio transactions; the possibility of nationalization, expropriation or confiscatory taxation; adverse changes in investment or exchange control regulations (which may include suspension of the ability to transfer currency from a country); and political instability which could affect U.S. investments in foreign countries. As a result of the Strategic Bond Fund’s concentration in such investments, it may be subject to risks associated with the international bonds.
141 |
VALIC Company II
NOTES TO FINANCIAL STATEMENTS (unaudited) — (continued)
Note 9 — Line of Credit
The Series, along with certain other funds managed by the Adviser, has access to a $85 million committed unsecured line of credit and a $40 million uncommitted unsecured line of credit. The committed and uncommitted lines of credit are renewable on an annual basis with State Street Bank and Trust Company, the Series’ custodian. The interest payable under the committed line of credit is the higher of the Federal Funds Rate (but not less than zero) plus 125 basis points or the One-Month London Interbank Offered Rate (but not less than zero) plus 125 basis points. In addition, the commitment fee on the daily unused portion of the committed line of credit is equal to 25 basis points per annum. The Series also paid a portion of an upfront fee in the amount of $50,000 at the closing of the committed and uncommitted lines of credit on October 7, 2016. Borrowings under the line of credit will commence when the respective Fund’s cash shortfall exceeds $100,000. For the six months ended February 28, 2017, the following Funds had borrowings:
Fund |
Days Outstanding |
Interest Charges |
Average Debt Utilized |
Weighted Average Interest |
||||||||||||
International Opportunities |
8 | $ | 667 | $ | 1,535,678 | 1.90 | % | |||||||||
Large Cap Value |
9 | 1,135 | 2,307,334 | 1.92 | ||||||||||||
Mid Cap Growth |
1 | 9 | 179,408 | 1.79 |
At February 28, 2017, there were no borrowings outstanding.
Note 10 — Interfund Lending Agreement
Pursuant to the exemptive relief granted by the SEC, the Funds are permitted to participate in an interfund lending program among investment companies advised by VALIC or an affiliate. The interfund lending program allows the participating Funds to borrow money from and lend money to each other for temporary or emergency purposes. An interfund loan will be made under this facility only if the participating Funds receive a more favorable interest rate than would otherwise be available from a typical bank for a comparable transaction.
For the six months ended February 28, 2017, none of the Funds participated in this program.
Note 11 — Security Transactions with Affiliated Portfolios
The Funds are permitted to transfer securities by purchasing from and/or selling to other affiliated funds under certain conditions approved by the Board. The affiliated funds involved in such transactions must have a common investment adviser or investment advisers which are affiliated persons of each other, common Trustees, and/or common officers in compliance with Rule 17a-7 of the 1940 Act. Pursuant to the Act, such a transaction must be either a purchase or a sale, for no consideration other than cash payment against prompt delivery of the security at the current market price. No brokerage commission or fee (except for customary transfer fees), or other remuneration is paid in connection with such transactions.
For the six months ended February 28, 2017, the following Funds engaged in security transactions with affiliated Funds:
Fund |
Cost of Purchases |
Proceeds from Sales |
Realized Gain/ (Loss) |
|||||||||
International Opportunities |
$ | 16,790 | $ | 439,856 | $ | 17,756 |
For the six months ended February 28, 2017, the following Funds incurred brokerage commissions with affiliated brokers which are affiliates of a sub-advisor:
Affiliated Broker |
International Opportunities |
Large Cap Value |
Small Cap Value |
|||||||||
ConvergEx Execution Solutions LLC |
$ | — | $ | 338 | $ | — | ||||||
J.P. Morgan Securities |
— | — | 2,216 | |||||||||
Macquarie Bank |
3,490 | — | — | |||||||||
Pershing, LLC |
— | 210 | — | |||||||||
Wells Fargo Securities, LLC |
— | — | 84 |
142 |
VALIC Company II
Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.
Aggressive Growth Lifestyle Fund |
Capital Appreciation Fund |
|||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended February 28, 2017(f) |
Year Ended August 31, |
Six Months Ended February 28, 2017(f) |
Year Ended August 31, |
|||||||||||||||||||||||||||||||||||||||||||||
2016 |
2015 |
2014 |
2013 |
2012 |
2016 |
2015 |
2014 |
2013 |
2012 |
|||||||||||||||||||||||||||||||||||||||
PER SHARE DATA |
||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value at beginning of period |
$ | 10.41 | $ | 10.67 | $ | 12.04 | $ | 10.30 | $ | 9.22 | $ | 8.44 | $ | 15.99 | $ | 16.35 | $ | 15.88 | $ | 12.82 | $ | 10.92 | $ | 9.37 | ||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)(d) |
0.10 | 0.19 | 0.20 | 0.18 | 0.11 | 0.14 | 0.04 | 0.09 | 0.06 | 0.05 | 0.07 | 0.05 | ||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies |
0.51 | 0.56 | (0.52 | ) | 1.77 | 1.10 | 0.79 | 1.00 | 1.20 | 0.46 | 3.08 | 1.88 | 1.55 | |||||||||||||||||||||||||||||||||||
Net increase from payments by affiliates |
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Total income (loss) from investment operations |
0.61 | 0.75 | (0.32 | ) | 1.95 | 1.21 | 0.93 | 1.04 | 1.29 | 0.52 | 3.13 | 1.95 | 1.60 | |||||||||||||||||||||||||||||||||||
Distributions from: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income |
– | (0.23 | ) | (0.19 | ) | (0.11 | ) | (0.13 | ) | (0.15 | ) | – | (0.06 | ) | (0.05 | ) | (0.07 | ) | (0.05 | ) | (0.05 | ) | ||||||||||||||||||||||||||
Net realized gain on securities |
– | (0.78 | ) | (0.86 | ) | (0.10 | ) | – | – | – | (1.59 | ) | – | – | – | – | ||||||||||||||||||||||||||||||||
Total distributions |
– | (1.01 | ) | (1.05 | ) | (0.21 | ) | (0.13 | ) | (0.15 | ) | – | (1.65 | ) | (0.05 | ) | (0.07 | ) | (0.05 | ) | (0.05 | ) | ||||||||||||||||||||||||||
Net asset value at end of period |
$ | 11.02 | $ | 10.41 | $ | 10.67 | $ | 12.04 | $ | 10.30 | $ | 9.22 | $ | 17.03 | $ | 15.99 | $ | 16.35 | $ | 15.88 | $ | 12.82 | $ | 10.92 | ||||||||||||||||||||||||
TOTAL RETURN(a) |
5.86 | % | 7.53 | % | (3.17 | )% | 19.03 | % | 13.21 | % | 11.15 | % | 6.50 | % | 8.33 | % | 3.28 | % | 24.43 | % | 17.93 | % | 17.13 | % | ||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of expenses to average net assets(b) |
0.10 | %(e)(g) | 0.10 | %(e) | 0.10 | %(e) | 0.10 | %(e) | 0.10 | %(e) | 0.10 | %(e) | 0.85 | %(g) | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | ||||||||||||||||||||||||
Ratio of expenses to average net assets(c) |
0.13 | %(e)(g) | 0.15 | %(e) | 0.14 | %(e) | 0.14 | %(e) | 0.15 | %(e) | 0.16 | %(e) | 0.98 | %(g) | 1.00 | % | 0.98 | % | 0.99 | % | 1.01 | % | 1.07 | % | ||||||||||||||||||||||||
Ratio of expense reductions to average net assets |
– | – | – | – | – | – | 0.01 | %(g) | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(b) |
1.87 | %(e)(g) | 1.78 | %(e) | 1.71 | %(e) | 1.56 | %(e) | 1.11 | %(e) | 1.62 | %(e) | 0.50 | %(g) | 0.52 | % | 0.36 | % | 0.31 | % | 0.58 | % | 0.53 | % | ||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(c) |
1.84 | %(e)(g) | 1.73 | %(e) | 1.67 | %(e) | 1.52 | %(e) | 1.06 | %(e) | 1.55 | %(e) | 0.37 | %(g) | 0.37 | % | 0.23 | % | 0.17 | % | 0.42 | % | 0.32 | % | ||||||||||||||||||||||||
Portfolio turnover rate |
20 | % | 24 | % | 31 | % | 32 | % | 41 | % | 44 | % | 35 | % | 54 | % | 44 | % | 44 | % | 44 | % | 119 | % | ||||||||||||||||||||||||
Number of shares outstanding at end of period (000’s) |
50,195 | 51,410 | 47,707 | 42,546 | 38,755 | 34,029 | 5,172 | 5,313 | 5,014 | 5,491 | 5,470 | 5,443 | ||||||||||||||||||||||||||||||||||||
Net assets at the end of period (000’s) |
$ | 553,298 | $ | 535,245 | $ | 508,890 | $ | 512,113 | $ | 399,133 | $ | 313,655 | $ | 88,083 | $ | 84,946 | $ | 81,961 | $ | 87,214 | $ | 70,095 | $ | 59,413 |
(a) | Total return is not annualized and includes, if any, expense reimbursements and expense reductions. The effect of fees and charges incurred at the separate account level are not reflected in these performance figures. If such expenses had been included, the total return would have been lower for each period presented. |
(b) | Includes expense reimbursements, but excludes expense reductions. |
(c) | Excludes expense reimbursements and expense reductions. |
(d) | The per share amounts are calculated using the average share method. |
(e) | Does not include underlying fund expenses that the Fund bears indirectly. |
(f) | Unaudited |
(g) | Annualized |
See Notes to Financial Statements
143 |
VALIC Company II
FINANCIAL HIGHLIGHTS — (continued)
Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.
Conservative Growth Lifestyle Fund |
Core Bond Fund |
|||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended February 28, 2017(f) |
Year Ended August 31, |
Six Months Ended February 28, 2017(f) |
Year Ended August 31, |
|||||||||||||||||||||||||||||||||||||||||||||
2016 |
2015 |
2014 |
2013 |
2012 |
2016 |
2015 |
2014 |
2013 |
2012 |
|||||||||||||||||||||||||||||||||||||||
PER SHARE DATA |
||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value at beginning of period |
$ | 11.82 | $ | 11.95 | $ | 13.12 | $ | 12.13 | $ | 12.02 | $ | 11.22 | $ | 11.30 | $ | 10.93 | $ | 11.09 | $ | 10.69 | $ | 11.41 | $ | 10.90 | ||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)(d) |
0.06 | 0.30 | 0.31 | 0.29 | 0.26 | 0.29 | 0.13 | 0.24 | 0.23 | 0.24 | 0.23 | 0.30 | ||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies |
0.23 | 0.41 | (0.62 | ) | 1.31 | 0.32 | 0.86 | (0.29 | ) | 0.38 | (0.16 | ) | 0.44 | (0.43 | ) | 0.56 | ||||||||||||||||||||||||||||||||
Net increase from payments by affiliates |
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Total income (loss) from investment operations |
0.29 | 0.71 | (0.31 | ) | 1.60 | 0.58 | 1.15 | (0.16 | ) | 0.62 | 0.07 | 0.68 | (0.20 | ) | 0.86 | |||||||||||||||||||||||||||||||||
Distributions from: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income |
– | (0.34 | ) | (0.29 | ) | (0.26 | ) | (0.24 | ) | (0.27 | ) | – | (0.22 | ) | (0.23 | ) | (0.20 | ) | (0.32 | ) | (0.30 | ) | ||||||||||||||||||||||||||
Net realized gain on securities |
– | (0.50 | ) | (0.57 | ) | (0.35 | ) | (0.23 | ) | (0.08 | ) | – | (0.03 | ) | – | (0.08 | ) | (0.20 | ) | (0.05 | ) | |||||||||||||||||||||||||||
Total distributions |
– | (0.84 | ) | (0.86 | ) | (0.61 | ) | (0.47 | ) | (0.35 | ) | – | (0.25 | ) | (0.23 | ) | (0.28 | ) | (0.52 | ) | (0.35 | ) | ||||||||||||||||||||||||||
Net asset value at end of period |
$ | 12.11 | $ | 11.82 | $ | 11.95 | $ | 13.12 | $ | 12.13 | $ | 12.02 | $ | 11.14 | $ | 11.30 | $ | 10.93 | $ | 11.09 | $ | 10.69 | $ | 11.41 | ||||||||||||||||||||||||
TOTAL RETURN(a) |
2.45 | % | 6.19 | % | (2.65 | )% | 13.34 | % | 4.93 | % | 10.50 | % | (1.42 | )% | 5.78 | % | 0.62 | % | 6.44 | % | (1.95 | )% | 8.08 | % | ||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of expenses to average net assets(b) |
0.10 | %(e)(g) | 0.10 | %(e) | 0.10 | %(e) | 0.10 | %(e) | 0.10 | %(e) | 0.10 | %(e) | 0.77 | %(g) | 0.77 | % | 0.77 | % | 0.77 | % | 0.77 | % | 0.77 | % | ||||||||||||||||||||||||
Ratio of expenses to average net assets(c) |
0.14 | %(e)(g) | 0.15 | %(e) | 0.14 | %(e) | 0.15 | %(e) | 0.16 | %(e) | 0.18 | %(e) | 0.79 | %(g) | 0.79 | % | 0.79 | % | 0.80 | % | 0.84 | % | 0.86 | % | ||||||||||||||||||||||||
Ratio of expense reductions to average net assets |
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(b) |
1.06 | %(e)(g) | 2.51 | %(e) | 2.45 | %(e) | 2.26 | %(e) | 2.12 | %(e) | 2.59 | %(e) | 2.30 | %(g) | 2.16 | % | 2.10 | % | 2.24 | % | 2.12 | % | 2.79 | % | ||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(c) |
1.02 | %(e)(g) | 2.46 | %(e) | 2.40 | %(e) | 2.22 | %(e) | 2.06 | %(e) | 2.51 | %(e) | 2.28 | %(g) | 2.15 | % | 2.08 | % | 2.21 | % | 2.05 | % | 2.70 | % | ||||||||||||||||||||||||
Portfolio turnover rate |
24 | % | 27 | % | 33 | % | 31 | % | 53 | % | 36 | % | 41 | % | 139 | % | 153 | % | 169 | % | 175 | % | 177 | % | ||||||||||||||||||||||||
Number of shares outstanding at end of period (000’s) |
27,512 | 27,779 | 27,270 | 24,601 | 21,622 | 16,819 | 92,403 | 106,434 | 97,489 | 85,364 | 72,290 | 55,895 | ||||||||||||||||||||||||||||||||||||
Net assets at the end of period (000’s) |
$ | 333,165 | $ | 328,390 | $ | 325,797 | $ | 322,764 | $ | 262,360 | $ | 202,134 | $ | 1,029,026 | $ | 1,202,915 | $ | 1,065,803 | $ | 946,699 | $ | 772,784 | $ | 637,701 |
(a) | Total return is not annualized and includes, if any, expense reimbursements and expense reductions. The effect of fees and charges incurred at the separate account level are not reflected in these performance figures. If such expenses had been included, the total return would have been lower for each period presented. |
(b) | Includes expense reimbursements, but excludes expense reductions. |
(c) | Excludes expense reimbursements and expense reductions. |
(d) | The per share amounts are calculated using the average share method. |
(e) | Does not include underlying fund expenses that the Fund bears indirectly. |
(f) | Unaudited |
(g) | Annualized |
See Notes to Financial Statements
144 |
VALIC Company II
FINANCIAL HIGHLIGHTS — (continued)
Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.
Government Money Market II Fund |
High Yield Bond Fund |
|||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended February 28, 2017(f) |
Year Ended August 31, |
Six Months Ended February 28, 2017(f) |
Year Ended August 31, |
|||||||||||||||||||||||||||||||||||||||||||||
2016 |
2015 |
2014 |
2013 |
2012 |
2016 |
2015 |
2014 |
2013 |
2012 |
|||||||||||||||||||||||||||||||||||||||
PER SHARE DATA |
||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value at beginning of period |
$ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 7.56 | $ | 7.40 | $ | 7.93 | $ | 7.63 | $ | 7.64 | $ | 7.28 | ||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)(d) |
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.20 | 0.37 | 0.38 | 0.41 | 0.44 | 0.46 | ||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies |
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.12 | 0.13 | (0.53 | ) | 0.28 | (0.03 | ) | 0.45 | ||||||||||||||||||||||||||||||||||
Net increase from payments by affiliates |
0.00 | – | 0.00 | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Total income (loss) from investment operations |
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.32 | 0.50 | (0.15 | ) | 0.69 | 0.41 | 0.91 | |||||||||||||||||||||||||||||||||||
Distributions from: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income |
(0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | – | (0.34 | ) | (0.38 | ) | (0.39 | ) | (0.42 | ) | (0.55 | ) | |||||||||||||||||||||||||
Net realized gain on securities |
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Total distributions |
(0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | – | (0.34 | ) | (0.38 | ) | (0.39 | ) | (0.42 | ) | (0.55 | ) | |||||||||||||||||||||||||
Net asset value at end of period |
$ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 7.88 | $ | 7.56 | $ | 7.40 | $ | 7.93 | $ | 7.63 | $ | 7.64 | ||||||||||||||||||||||||
TOTAL RETURN(a) |
0.01 | % | 0.01 | % | 0.01 | %(e) | 0.01 | % | 0.01 | % | 0.01 | % | 4.23 | % | 7.07 | % | (2.02 | )% | 9.10 | % | 5.46 | % | 13.18 | % | ||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
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Ratio of expenses to average net assets(b) |
0.46 | %(g) | 0.32 | % | 0.15 | % | 0.15 | % | 0.20 | % | 0.19 | % | 0.96 | %(g) | 0.96 | % | 0.96 | % | 0.96 | % | 0.96 | % | 0.96 | % | ||||||||||||||||||||||||
Ratio of expenses to average net assets(c) |
0.72 | %(g) | 0.66 | % | 0.64 | % | 0.63 | % | 0.65 | % | 0.65 | % | 0.96 | %(g) | 0.99 | % | 0.98 | % | 0.99 | % | 1.01 | % | 1.02 | % | ||||||||||||||||||||||||
Ratio of expense reductions to average net assets |
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(b) |
0.02 | %(g) | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 5.19 | %(g) | 5.16 | % | 5.00 | % | 5.25 | % | 5.77 | % | 6.26 | % | ||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(c) |
(0.25 | )%(g) | (0.33 | )% | (0.48 | )% | (0.47 | )% | (0.44 | )% | (0.45 | )% | 5.19 | %(g) | 5.13 | % | 4.97 | % | 5.22 | % | 5.73 | % | 6.20 | % | ||||||||||||||||||||||||
Portfolio turnover rate |
N/A | N/A | N/A | N/A | N/A | N/A | 22 | % | 36 | % | 36 | % | 37 | % | 34 | % | 38 | % | ||||||||||||||||||||||||||||||
Number of shares outstanding at end of period (000’s) |
134,880 | 141,263 | 159,882 | 170,830 | 186,069 | 187,696 | 79,524 | 78,148 | 63,332 | 53,018 | 44,801 | 37,281 | ||||||||||||||||||||||||||||||||||||
Net assets at the end of period (000’s) |
$ | 134,909 | $ | 141,291 | $ | 159,905 | $ | 170,575 | $ | 185,810 | $ | 187,430 | $ | 626,871 | $ | 590,679 | $ | 468,855 | $ | 420,459 | $ | 341,751 | $ | 284,818 |
(a) | Total return is not annualized and includes, if any, expense reimbursements and expense reductions. The effect of fees and charges incurred at the separate account level are not reflected in these performance figures. If such expenses had been included, the total return would have been lower for each period presented. |
(b) | Includes expense reimbursements, but excludes expense reductions. |
(c) | Excludes expense reimbursements and expense reductions. |
(d) | The per share amounts are calculated using the average share method. |
(e) | The fund’s performance figure was increased by less than 0.01% from the effect of payments by an affiliate. |
(f) | Unaudited |
(g) | Annualized |
See Notes to Financial Statements
145 |
VALIC Company II
FINANCIAL HIGHLIGHTS — (continued)
Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.
International Opportunities Fund |
Large Cap Value Fund |
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Six Months Ended February 28, 2017(e) |
Year Ended August 31, |
Six Months Ended February 28, 2017(e) |
Year Ended August 31, |
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2016 |
2015 |
2014 |
2013 |
2012 |
2016 |
2015 |
2014 |
2013 |
2012 |
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PER SHARE DATA |
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Net asset value at beginning of period |
$ | 16.00 | $ | 15.08 | $ | 15.50 | $ | 13.78 | $ | 11.87 | $ | 12.47 | $ | 18.41 | $ | 17.08 | $ | 17.58 | $ | 14.51 | $ | 11.67 | $ | 10.41 | ||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)(d) |
0.02 | 0.14 | 0.16 | 0.16 | 0.14 | 0.20 | 0.13 | 0.27 | 0.20 | 0.22 | 0.19 | 0.15 | ||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies |
0.28 | 0.94 | (0.38 | ) | 1.75 | 2.04 | (0.59 | ) | 2.43 | 1.27 | (0.46 | ) | 3.04 | 2.81 | 1.22 | |||||||||||||||||||||||||||||||||
Net increase from payments by affiliates |
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Total income (loss) from investment operations |
0.30 | 1.08 | (0.22 | ) | 1.91 | 2.18 | (0.39 | ) | 2.56 | 1.54 | (0.26 | ) | 3.26 | 3.00 | 1.37 | |||||||||||||||||||||||||||||||||
Distributions from: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income |
– | (0.16 | ) | (0.20 | ) | (0.19 | ) | (0.27 | ) | (0.21 | ) | – | (0.21 | ) | (0.24 | ) | (0.19 | ) | (0.16 | ) | (0.11 | ) | ||||||||||||||||||||||||||
Net realized gain on securities |
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Total distributions |
– | (0.16 | ) | (0.20 | ) | (0.19 | ) | (0.27 | ) | (0.21 | ) | – | (0.21 | ) | (0.24 | ) | (0.19 | ) | (0.16 | ) | (0.11 | ) | ||||||||||||||||||||||||||
Net asset value at end of period |
$ | 16.30 | $ | 16.00 | $ | 15.08 | $ | 15.50 | $ | 13.78 | $ | 11.87 | $ | 20.97 | $ | 18.41 | $ | 17.08 | $ | 17.58 | $ | 14.51 | $ | 11.67 | ||||||||||||||||||||||||
TOTAL RETURN(a) |
1.88 | % | 7.23 | % | (1.50 | )% | 13.88 | % | 18.58 | % | (2.95 | )% | 13.91 | % | 9.09 | % | (1.56 | )% | 22.55 | % | 26.02 | % | 13.30 | % | ||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of expenses to average net assets(b) |
1.00 | %(f) | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | 0.81 | %(f) | 0.81 | % | 0.81 | % | 0.81 | % | 0.81 | % | 0.81 | % | ||||||||||||||||||||||||
Ratio of expenses to average net assets(c) |
1.21 | %(f) | 1.21 | % | 1.21 | % | 1.21 | % | 1.31 | % | 1.31 | % | 0.87 | %(f) | 0.89 | % | 0.88 | % | 0.88 | % | 0.91 | % | 0.93 | % | ||||||||||||||||||||||||
Ratio of expense reductions to average net assets |
– | 0.00 | % | 0.01 | % | 0.00 | % | – | – | 0.01 | %(f) | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | |||||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(b) |
0.24 | %(f) | 0.91 | % | 1.02 | % | 1.05 | % | 1.08 | % | 1.70 | % | 1.33 | %(f) | 1.59 | % | 1.11 | % | 1.31 | % | 1.40 | % | 1.33 | % | ||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(c) |
0.03 | %(f) | 0.70 | % | 0.81 | % | 0.84 | % | 0.76 | % | 1.39 | % | 1.27 | %(f) | 1.51 | % | 1.04 | % | 1.24 | % | 1.30 | % | 1.21 | % | ||||||||||||||||||||||||
Portfolio turnover rate |
36 | % | 58 | % | 59 | % | 72 | % | 62 | % | 164 | % | 41 | % | 71 | % | 72 | % | 54 | % | 53 | % | 62 | % | ||||||||||||||||||||||||
Number of shares outstanding at end of period (000’s) |
34,866 | 37,260 | 39,548 | 37,851 | 38,063 | 41,554 | 11,837 | 12,540 | 11,333 | 12,597 | 12,995 | 12,913 | ||||||||||||||||||||||||||||||||||||
Net assets at the end of period (000’s) |
$ | 568,244 | $ | 596,055 | $ | 596,301 | $ | 586,631 | $ | 524,503 | $ | 493,207 | $ | 248,180 | $ | 230,844 | $ | 193,602 | $ | 221,453 | $ | 188,508 | $ | 150,682 |
(a) | Total return is not annualized and includes, if any, expense reimbursements and expense reductions. The effect of fees and charges incurred at the separate account level are not reflected in these performance figures. If such expenses had been included, the total return would have been lower for each period presented. |
(b) | Includes expense reimbursements, but excludes expense reductions. |
(c) | Excludes expense reimbursements and expense reductions. |
(d) | The per share amounts are calculated using the average share method. |
(e) | Unaudited |
(f) | Annualized |
See Notes to Financial Statements
146 |
VALIC Company II
FINANCIAL HIGHLIGHTS — (continued)
Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.
Mid Cap Growth Fund |
Mid Cap Value Fund |
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Six Months Ended February 28, 2017(e) |
Year Ended August 31, |
Six Months Ended February 28, 2017(e) |
Year Ended August 31, |
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2016 |
2015 |
2014 |
2013 |
2012 |
2016 |
2015 |
2014 |
2013 |
2012 |
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PER SHARE DATA |
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Net asset value at beginning of period |
$ | 8.42 | $ | 8.81 | $ | 10.13 | $ | 9.76 | $ | 8.45 | $ | 7.93 | $ | 20.45 | $ | 21.82 | $ | 25.15 | $ | 21.66 | $ | 17.31 | $ | 15.28 | ||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)(d) |
0.01 | (0.02 | ) | (0.02 | ) | (0.05 | ) | 0.00 | 0.00 | 0.05 | 0.14 | 0.07 | 0.05 | 0.07 | 0.06 | |||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies |
0.71 | 0.24 | 0.27 | 1.33 | 1.42 | 0.52 | 2.10 | 1.73 | (0.82 | ) | 5.06 | 4.35 | 2.05 | |||||||||||||||||||||||||||||||||||
Net increase from payments by affiliates |
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Total income (loss) from investment operations |
0.72 | 0.22 | 0.25 | 1.28 | 1.42 | 0.52 | 2.15 | 1.87 | (0.75 | ) | 5.11 | 4.42 | 2.11 | |||||||||||||||||||||||||||||||||||
Distributions from: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income |
– | – | – | (0.01 | ) | (0.01 | ) | – | – | (0.06 | ) | (0.05 | ) | (0.08 | ) | (0.07 | ) | (0.08 | ) | |||||||||||||||||||||||||||||
Net realized gain on securities |
– | (0.61 | ) | (1.57 | ) | (0.90 | ) | (0.10 | ) | – | – | (3.18 | ) | (2.53 | ) | (1.54 | ) | – | – | |||||||||||||||||||||||||||||
Total distributions |
– | (0.61 | ) | (1.57 | ) | (0.91 | ) | (0.11 | ) | – | – | (3.24 | ) | (2.58 | ) | (1.62 | ) | (0.07 | ) | (0.08 | ) | |||||||||||||||||||||||||||
Net asset value at end of period |
$ | 9.14 | $ | 8.42 | $ | 8.81 | $ | 10.13 | $ | 9.76 | $ | 8.45 | $ | 22.60 | $ | 20.45 | $ | 21.82 | $ | 25.15 | $ | 21.66 | $ | 17.31 | ||||||||||||||||||||||||
TOTAL RETURN(a) |
8.55 | % | 3.01 | % | 1.66 | % | 13.86 | % | 17.06 | % | 6.56 | % | 10.51 | % | 9.62 | % | (3.61 | )% | 23.97 | % | 25.64 | % | 13.85 | % | ||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of expenses to average net assets(b) |
0.85 | %(f) | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | 1.04 | %(f) | 1.05 | % | 1.05 | % | 1.05 | % | 1.05 | % | 1.05 | % | ||||||||||||||||||||||||
Ratio of expenses to average net assets(c) |
1.16 | %(f) | 1.17 | % | 1.14 | % | 1.17 | % | 1.18 | % | 1.18 | % | 1.04 | %(f) | 1.06 | % | 1.06 | % | 1.05 | % | 1.08 | % | 1.11 | % | ||||||||||||||||||||||||
Ratio of expense reductions to average net assets |
0.01 | %(f) | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.03 | % | 0.00 | %(f) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.01 | % | ||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(b) |
0.20 | %(f) | (0.27 | )% | (0.26 | )% | (0.47 | )% | 0.02 | % | 0.02 | % | 0.45 | %(f) | 0.65 | % | 0.28 | % | 0.22 | % | 0.37 | % | 0.39 | % | ||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(c) |
(0.11 | )%(f) | (0.59 | )% | (0.54 | )% | (0.79 | )% | (0.30 | )% | (0.31 | )% | 0.45 | %(f) | 0.64 | % | 0.27 | % | 0.22 | % | 0.34 | % | 0.33 | % | ||||||||||||||||||||||||
Portfolio turnover rate |
41 | % | 92 | % | 102 | % | 175 | % | 112 | % | 131 | % | 24 | % | 44 | % | 56 | % | 29 | % | 46 | % | 70 | % | ||||||||||||||||||||||||
Number of shares outstanding at end of period (000’s) |
13,289 | 14,338 | 17,507 | 16,118 | 13,586 | 16,888 | 47,510 | 48,776 | 42,460 | 38,551 | 39,686 | 40,101 | ||||||||||||||||||||||||||||||||||||
Net assets at the end of period (000’s) |
$ | 121,401 | $ | 120,774 | $ | 154,291 | $ | 163,273 | $ | 132,584 | $ | 142,785 | $ | 1,073,961 | $ | 997,576 | $ | 926,580 | $ | 969,591 | $ | 859,611 | $ | 694,095 |
(a) | Total return is not annualized and includes, if any, expense reimbursements and expense reductions. The effect of fees and charges incurred at the separate account level are not reflected in these performance figures. If such expenses had been included, the total return would have been lower for each period presented. |
(b) | Includes expense reimbursements, but excludes expense reductions. |
(c) | Excludes expense reimbursements and expense reductions. |
(d) | The per share amounts are calculated using the average share method. |
(e) | Unaudited |
(f) | Annualized |
See Notes to Financial Statements
147 |
VALIC Company II
FINANCIAL HIGHLIGHTS — (continued)
Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.
Moderate Growth Lifestyle Fund |
Small Cap Growth Fund |
|||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended February 28, 2017(f) |
Year Ended August 31, |
Six Months Ended February 28, 2017(f) |
Year Ended August 31, |
|||||||||||||||||||||||||||||||||||||||||||||
2016 |
2015 |
2014 |
2013 |
2012 |
2016 |
2015 |
2014 |
2013 |
2012 |
|||||||||||||||||||||||||||||||||||||||
PER SHARE DATA |
||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value at beginning of period |
$ | 13.98 | $ | 14.09 | $ | 15.61 | $ | 13.93 | $ | 13.10 | $ | 12.04 | $ | 14.20 | $ | 15.31 | $ | 16.27 | $ | 16.11 | $ | 13.47 | $ | 12.87 | ||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)(d) |
0.10 | 0.30 | 0.29 | 0.28 | 0.21 | 0.24 | (0.03 | ) | (0.03 | ) | (0.04 | ) | (0.14 | ) | (0.09 | ) | (0.07 | ) | ||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies |
0.53 | 0.70 | (0.65 | ) | 1.99 | 1.04 | 1.06 | 1.64 | 0.42 | 0.97 | 1.68 | 3.92 | 1.66 | |||||||||||||||||||||||||||||||||||
Net increase from payments by affiliates |
– | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Total income (loss) from investment operations |
0.63 | 1.00 | (0.36 | ) | 2.27 | 1.25 | 1.30 | 1.61 | 0.39 | 0.93 | 1.54 | 3.83 | 1.59 | |||||||||||||||||||||||||||||||||||
Distributions from: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income |
– | (0.32 | ) | (0.28 | ) | (0.20 | ) | (0.21 | ) | (0.24 | ) | – | – | – | – | – | – | |||||||||||||||||||||||||||||||
Net realized gain on securities |
– | (0.79 | ) | (0.88 | ) | (0.39 | ) | (0.21 | ) | – | – | (1.50 | ) | (1.89 | ) | (1.38 | ) | (1.19 | ) | (0.99 | ) | |||||||||||||||||||||||||||
Total distributions |
– | (1.11 | ) | (1.16 | ) | (0.59 | ) | (0.42 | ) | (0.24 | ) | – | (1.50 | ) | (1.89 | ) | (1.38 | ) | (1.19 | ) | (0.99 | ) | ||||||||||||||||||||||||||
Net asset value at end of period |
$ | 14.61 | $ | 13.98 | $ | 14.09 | $ | 15.61 | $ | 13.93 | $ | 13.10 | $ | 15.81 | $ | 14.20 | $ | 15.31 | $ | 16.27 | $ | 16.11 | $ | 13.47 | ||||||||||||||||||||||||
TOTAL RETURN(a) |
4.51 | % | 7.48 | % | (2.68 | )% | 16.46 | % | 9.76 | % | 11.00 | % | 11.34 | % | 4.40 | % | 5.26 | % | 10.33 | % | 31.19 | % | 13.13 | % | ||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of expenses to average net assets(b) |
0.10 | %(e)(g) | 0.10 | %(e) | 0.10 | %(e) | 0.10 | %(e) | 0.10 | %(e) | 0.10 | %(e) | 1.16 | %(g) | 1.16 | % | 1.16 | % | 1.16 | % | 1.16 | % | 1.16 | % | ||||||||||||||||||||||||
Ratio of expenses to average net assets(c) |
0.13 | %(e)(g) | 0.14 | %(e) | 0.13 | %(e) | 0.13 | %(e) | 0.14 | %(e) | 0.16 | %(e) | 1.26 | %(g) | 1.29 | % | 1.25 | % | 1.26 | % | 1.31 | % | 1.33 | % | ||||||||||||||||||||||||
Ratio of expense reduction to average net assets |
– | – | – | – | – | – | 0.00 | %(g) | 0.01 | % | 0.01 | % | 0.00 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(b) |
1.48 | %(e)(g) | 2.15 | %(e) | 1.92 | %(e) | 1.84 | %(e) | 1.55 | %(e) | 1.99 | %(e) | (0.44 | )%(g) | (0.22 | )% | (0.25 | )% | (0.83 | )% | (0.65 | )% | (0.52 | )% | ||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(c) |
1.45 | %(e)(g) | 2.11 | %(e) | 1.89 | %(e) | 1.81 | %(e) | 1.50 | %(e) | 1.93 | %(e) | (0.53 | )%(g) | (0.35 | )% | (0.34 | )% | (0.93 | )% | (0.80 | )% | (0.69 | )% | ||||||||||||||||||||||||
Portfolio turnover rate |
20 | % | 33 | % | 30 | % | 27 | % | 36 | % | 36 | % | 15 | % | 39 | % | 49 | % | 63 | % | 68 | % | 63 | % | ||||||||||||||||||||||||
Number of shares outstanding at end of period (000’s) |
60,107 | 60,581 | 56,655 | 51,152 | 43,504 | 34,532 | 7,078 | 7,035 | 7,185 | 7,001 | 6,333 | 6,026 | ||||||||||||||||||||||||||||||||||||
Net assets at the end of period (000’s) |
$ | 878,041 | $ | 846,974 | $ | 798,444 | $ | 798,521 | $ | 606,185 | $ | 452,347 | $ | 111,907 | $ | 99,884 | $ | 110,029 | $ | 113,907 | $ | 102,025 | $ | 81,161 |
(a) | Total return is not annualized and includes, if any, expense reimbursements and expense reductions. The effect of fees and charges incurred at the separate account level are not reflected in these performance figures. If such expenses had been included, the total return would have been lower for each period presented. |
(b) | Includes expense reimbursements, but excludes expense reductions. |
(c) | Excludes expense reimbursements and expense reductions. |
(d) | The per share amounts are calculated using the average share method. |
(e) | Does not include underlying fund expenses that the Fund bears indirectly. |
(f) | Unaudited |
(g) | Annualized |
See Notes to Financial Statements
148 |
VALIC Company II
FINANCIAL HIGHLIGHTS — (continued)
Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.
Small Cap Value Fund |
Socially Responsible Fund |
|||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended February 28, 2017(f) |
Year Ended August 31, |
Six Months Ended February 28, 2017(f) |
Year Ended August 31, |
|||||||||||||||||||||||||||||||||||||||||||||
2016 |
2015 |
2014 |
2013 |
2012 |
2016 |
2015 |
2014 |
2013 |
2012 |
|||||||||||||||||||||||||||||||||||||||
PER SHARE DATA |
||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value at beginning of period |
$ | 13.57 | $ | 14.01 | $ | 16.65 | $ | 15.83 | $ | 12.68 | $ | 12.41 | $ | 19.23 | $ | 18.55 | $ | 18.56 | $ | 14.84 | $ | 12.53 | $ | 10.92 | ||||||||||||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)(d) |
0.10 | 0.13 | 0.17 | 0.09 | 0.13 | 0.07 | 0.16 | 0.28 | 0.26 | 0.22 | 0.21 | 0.16 | ||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies |
1.87 | 1.27 | (0.56 | ) | 2.70 | 3.33 | 0.71 | 1.57 | 1.89 | (0.05 | ) | 3.74 | 2.31 | 1.60 | ||||||||||||||||||||||||||||||||||
Net increase from payments by affiliates |
– | – | – | – | – | 0.00 | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Total income (loss) from investment operations |
1.97 | 1.40 | (0.39 | ) | 2.79 | 3.46 | 0.78 | 1.73 | 2.17 | 0.21 | 3.96 | 2.52 | 1.76 | |||||||||||||||||||||||||||||||||||
Distributions from: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income |
– | (0.17 | ) | (0.10 | ) | (0.17 | ) | (0.07 | ) | (0.12 | ) | – | (0.28 | ) | (0.22 | ) | (0.24 | ) | (0.21 | ) | (0.15 | ) | ||||||||||||||||||||||||||
Net realized gain on securities |
– | (1.67 | ) | (2.15 | ) | (1.80 | ) | (0.24 | ) | (0.39 | ) | – | (1.21 | ) | – | – | – | – | ||||||||||||||||||||||||||||||
Total distributions |
– | (1.84 | ) | (2.25 | ) | (1.97 | ) | (0.31 | ) | (0.51 | ) | – | (1.49 | ) | (0.22 | ) | (0.24 | ) | (0.21 | ) | (0.15 | ) | ||||||||||||||||||||||||||
Net asset value at end of period |
$ | 15.54 | $ | 13.57 | $ | 14.01 | $ | 16.65 | $ | 15.83 | $ | 12.68 | $ | 20.96 | $ | 19.23 | $ | 18.55 | $ | 18.56 | $ | 14.84 | $ | 12.53 | ||||||||||||||||||||||||
TOTAL RETURN(a) |
14.52 | % | 11.27 | % | (3.38 | )% | 18.39 | % | 27.78 | % | 6.58 | %(e) | 9.00 | % | 12.16 | % | 1.06 | % | 26.82 | % | 20.40 | % | 16.34 | % | ||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of expenses to average net assets(b) |
0.95 | %(g) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.56 | %(g) | 0.56 | % | 0.56 | % | 0.56 | % | 0.56 | % | 0.56 | % | ||||||||||||||||||||||||
Ratio of expenses to average net assets(c) |
1.01 | %(g) | 1.04 | % | 1.03 | % | 1.03 | % | 1.05 | % | 1.08 | % | 0.60 | %(g) | 0.61 | % | 0.61 | % | 0.61 | % | 0.62 | % | 0.63 | % | ||||||||||||||||||||||||
Ratio of expense reductions to average net assets |
0.00 | %(g) | 0.00 | % | 0.00 | % | 0.01 | % | 0.01 | % | 0.01 | % | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(b) |
1.36 | %(g) | 0.98 | % | 1.02 | % | 0.54 | % | 0.91 | % | 0.58 | % | 1.61 | %(g) | 1.47 | % | 1.35 | % | 1.29 | % | 1.56 | % | 1.39 | % | ||||||||||||||||||||||||
Ratio of net investment income (loss) to average net assets(c) |
1.30 | %(g) | 0.89 | % | 0.95 | % | 0.46 | % | 0.81 | % | 0.46 | % | 1.57 | %(g) | 1.42 | % | 1.31 | % | 1.25 | % | 1.49 | % | 1.33 | % | ||||||||||||||||||||||||
Portfolio turnover rate |
55 | % | 59 | % | 50 | % | 47 | % | 81 | % | 96 | % | 0 | % | 25 | % | 31 | % | 26 | % | 39 | % | 44 | % | ||||||||||||||||||||||||
Number of shares outstanding at end of period (000’s) |
35,483 | 37,866 | 34,784 | 33,516 | 32,045 | 32,052 | 38,443 | 39,360 | 39,153 | 36,604 | 39,040 | 47,833 | ||||||||||||||||||||||||||||||||||||
Net assets at the end of period (000’s) |
$ | 551,478 | $ | 513,783 | $ | 487,157 | $ | 558,170 | $ | 507,366 | $ | 406,471 | $ | 805,951 | $ | 756,821 | $ | 726,460 | $ | 679,235 | $ | 579,372 | $ | 599,500 |
(a) | Total return is not annualized and includes, if any, expense reimbursements and expense reductions. The effect of fees and charges incurred at the separate account level are not reflected in these performance figures. If such expenses had been included, the total return would have been lower for each period presented. |
(b) | Includes expense reimbursements, but excludes expense reductions. |
(c) | Excludes expense reimbursements and expense reductions. |
(d) | The per share amounts are calculated using the average share method. |
(e) | The Fund’s performance figure was decreased by less than 0.01% from losses realized on the disposal of investments in violation of investment restrictions. |
(f) | Unaudited |
(g) | Annualized |
See Notes to Financial Statements
149 |
VALIC Company II
FINANCIAL HIGHLIGHTS — (continued)
Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.
Strategic Bond Fund |
||||||||||||||||||||||||
Six Months Ended February 28, 2017(e) |
Year Ended August 31, |
|||||||||||||||||||||||
2016 |
2015 |
2014 |
2013 |
2012 |
||||||||||||||||||||
PER SHARE DATA |
||||||||||||||||||||||||
Net asset value at beginning of period |
$ | 11.28 | $ | 11.00 | $ | 11.77 | $ | 11.23 | $ | 11.78 | $ | 11.31 | ||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||||||
Net investment income (loss)(d) |
0.18 | 0.38 | 0.42 | 0.48 | 0.46 | 0.49 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currencies |
(0.06 | ) | 0.39 | (0.68 | ) | 0.62 | (0.44 | ) | 0.58 | |||||||||||||||
Net increase from payments by affiliates |
– | – | – | – | – | – | ||||||||||||||||||
Total income (loss) from investment operations |
0.12 | 0.77 | (0.26 | ) | 1.10 | 0.02 | 1.07 | |||||||||||||||||
Distributions from: |
||||||||||||||||||||||||
Net investment income |
– | (0.45 | ) | (0.41 | ) | (0.44 | ) | (0.46 | ) | (0.60 | ) | |||||||||||||
Net realized gain on securities |
– | (0.04 | ) | (0.10 | ) | (0.12 | ) | (0.11 | ) | – | ||||||||||||||
Total distributions |
– | (0.49 | ) | (0.51 | ) | (0.56 | ) | (0.57 | ) | (0.60 | ) | |||||||||||||
Net asset value at end of period |
$ | 11.40 | $ | 11.28 | $ | 11.00 | $ | 11.77 | $ | 11.23 | $ | 11.78 | ||||||||||||
TOTAL RETURN(a) |
1.06 | % | 7.15 | % | (2.32 | )% | 9.89 | % | 0.03 | % | 9.97 | % | ||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Ratio of expenses to average net assets |
0.87 | %(f) | 0.88 | % | 0.87 | % | 0.88 | % | 0.89 | %(b) | 0.89 | %(b) | ||||||||||||
Ratio of expenses to average net assets |
0.87 | %(f) | 0.88 | % | 0.87 | % | 0.88 | % | 0.91 | %(c) | 0.93 | %(c) | ||||||||||||
Ratio of expense reductions to average net assets |
– | – | – | – | – | – | ||||||||||||||||||
Ratio of net investment income (loss) to average net assets |
3.30 | %(f) | 3.51 | % | 3.67 | % | 4.11 | % | 4.00 | %(b) | 4.39 | %(b) | ||||||||||||
Ratio of net investment income (loss) to average net assets |
3.30 | %(f) | 3.51 | % | 3.67 | % | 4.11 | % | 3.98 | %(c) | 4.35 | %(c) | ||||||||||||
Portfolio turnover rate |
79 | % | 162 | % | 132 | % | 150 | % | 164 | % | 191 | % | ||||||||||||
Number of shares outstanding at end of period (000’s) |
72,500 | 72,983 | 71,428 | 64,149 | 61,398 | 53,061 | ||||||||||||||||||
Net assets at the end of period (000’s) |
$ | 826,804 | $ | 823,464 | $ | 785,635 | $ | 755,092 | $ | 689,403 | $ | 624,863 |
(a) | Total return is not annualized and includes, if any, expense reimbursements and expense reductions. The effect of fees and charges incurred at the separate account level are not reflected in these performance figures. If such expenses had been included, the total return would have been lower for each period presented. |
(b) | Includes expense reimbursements, but excludes expense reductions. |
(c) | Excludes expense reimbursements and expense reductions. |
(d) | The per share amounts are calculated using the average share method. |
(e) | Unaudited |
(f) | Annualized |
See Notes to Financial Statements
150 |
VALIC Company II
SUPPLEMENTS TO PROSPECTUS (unaudited)
THE SUPPLEMENT IS NOT PART OF THE SEMI-ANNUAL REPORT
Filed under Rule 497(e)
Registration No. 333-53589
INTERNATIONAL OPPORTUNITIES FUND
(the “Fund”)
Supplement dated April 3, 2017, to the Fund’s Prospectus and
Statement of Additional Information dated January 1, 2017, as Supplemented and amended to date
Effective immediately, all reference to “Delaware Management Business Trust” is hereby deleted and replaced with “Macquarie Investment Management Business Trust”.
Capitalized terms used but not defined herein shall have the meanings assigned to them by the Prospectus and SAI, as applicable.
Please retain this supplement for future reference.
151 |
VALIC Company II
SUPPLEMENTS TO PROSPECTUS (unaudited) — (continued)
THE SUPPLEMENT IS NOT PART OF THE SEMI-ANNUAL REPORT
Filed under Rule 497(e)
Registration No. 333-53589
SMALL CAP GROWTH FUND
(the “Fund”)
Supplement dated April 3, 2017, to the Fund’s Prospectus and
Statement of Additional Information (“SAI”) dated January 1, 2017, as supplemented and amended to date
Effective immediately, Felise Agranoff is on parental leave. During the time Ms. Agranoff is on leave, the Fund will continue to be managed by the remaining members of the portfolio management team. Ms. Agranoff is expected to return from her leave on or about April 24, 2017, at which point she will resume her full responsibilities as a member of the Fund’s portfolio management team.
Capitalized terms used but not defined herein shall have the meanings assigned to them by the Prospectus and SAI, as applicable.
Please retain this supplement for future reference.
152 |
VALIC Company II
SUPPLEMENTS TO PROSPECTUS (unaudited) — (continued)
THE SUPPLEMENT IS NOT PART OF THE SEMI-ANNUAL REPORT
Filed under Rule 497(e)
Registration No. 333-53589
GOVERNMENT MONEY MARKET II FUND
SOCIALLY RESPONSIBLE FUND
(each, a “Fund,” and collectively, the “Funds”)
Supplement dated April 21, 2017, to the Funds’
Prospectus dated January 1, 2017, as supplemented and amended to date
In the section entitled “Fund Summary: Socially Responsible Fund,” the table under the heading “Investment Adviser – Portfolio Managers” on page 45 of the Prospectus is deleted in its entirety and replaced with the following:
Name |
Portfolio Manager of the Fund Since |
Title |
||||||
Timothy Campion |
2012 | Lead Portfolio Manager | ||||||
Kara Murphy |
2013 | Co-Portfolio Manager | ||||||
Jane Bayar Algieri |
2015 | Co-Portfolio Manager |
In the section entitled “Management – Investment Subadvisers,” the information on page 74 with respect to SunAmerica Asset Management, LLC is hereby deleted in its entirety and replaced with the following:
Government Money Market II Fund
Socially Responsible Fund
SunAmerica Asset Management, LLC (“SAAMCo”)
Harborside 5
185 Hudson Street, Suite 3300
SAAMCo is organized as a Delaware limited liability company and is an indirect, wholly-owned subsidiary of AIG. SAAMCo’s primary focus has been on the management, in either an advisory or subadvisory capacity, of registered investment products. As of September 30, 2016, SAAMCo managed, advised and/or administered more than $80.34 billion in assets.
The Socially Responsible Fund is managed by a team consisting of Timothy Campion, Kara Murphy and Jane Bayar Algieri, with Mr. Campion serving as team leader. Mr. Campion is a Senior Vice President and Portfolio Manager at SAAMCo. He is responsible for the management and trading of a wide variety of social and domestic equity index funds. Mr. Campion joined SAAMCo in 2012. Prior to joining SAAMCo, he was Vice President and Portfolio Manager at PineBridge since 1999. Ms. Murphy is the Chief Investment Officer of SAAMCo. Previously, Ms. Murphy was the Director of Research and a senior research analyst covering the financial sector. Before joining SAAMCo, Ms. Murphy held research positions at Chilton Investment Company and Morgan Stanley Investment Management. Her investment experience dates from 2000. Ms. Algieri joined SAAMCo in 2004. She is a Portfolio Manager on index and social funds. Previously at SAAMCo, Ms. Algieri was an equity analyst and assistant portfolio manager on fixed income funds. Ms. Algieri received her B.A. from Baruch College and her M.B.A. from Rutgers School of Business.
The Government Money Market II Fund is managed by a team consisting of Timothy Campion and Jane Bayar Algieri. Please see above for the biographies of Mr. Campion and Ms. Algieri.
Capitalized terms used but not defined herein shall have the meanings assigned to them by the Prospectus.
Please retain this supplement for future reference.
153 |
VALIC Company II
BOARD OF TRUSTEES
Thomas J. Brown
Judith L. Craven
William F. Devin
Timothy J. Ebner
Gustavo E. Gonzales, Jr.
Peter A. Harbeck
Kenneth J. Lavery
John E. Maupin, Jr.
CUSTODIAN
State Street Bank and Trust Company
One Lincoln Street
INVESTMENT ADVISER
The Variable Annuity
Life Insurance Company (VALIC)
2929 Allen Parkway
INVESTMENT SUBADVISERS
Delaware Investments Fund Advisers
2005 Market Street
J.P. Morgan Investment Management Inc.
270 Park Avenue
Janus Capital Management, LLC
151 Detroit Street
Massachusetts Financial Services Company
111 Huntington Avenue
PineBridge Investments, LLC
399 Park Avenue
Robeco Investment Management, Inc. d/b/a Boston Partners
909 Third Avenue, 32nd Floor
SunAmerica Asset Management, LLC
Haborside 5
185 Hudson Street, Suite 3300
The Boston Company Asset Management, LLC
BNY Mellon Center
201 Washington St.
Wellington Management Company LLP
280 Congress Street
Wells Capital Management Incorporated
525 Market St.
10th Floor
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
1201 Louisiana Street, Suite 2900
TRANSFER AND SHAREHOLDER SERVICE AGENT
VALIC Retirement
Services Company (VRSCO)
2929 Allen Parkway
OFFICERS
President and Principal Executive Officer
John Packs,
Vice President and Senior Investment Officer
Treasurer and Principal Financial Officer
Kathleen Fuentes,
Vice President, Chief Legal Officer and Secretary
Gregory N. Bressler,
Vice President
Thomas M. Ward,
Vice President
Shawn Parry,
Vice President and Assistant Treasurer
Donna McManus,
Vice President and Assistant Treasurer
Christopher Joe,
Chief Compliance Officer
DISCLOSURE OF QUARTERLY FUND PORTFOLIO HOLDINGS
VC II is required to file its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission for its first and third fiscal quarters on Form N-Q. VC II’s Forms N-Q are available on the U.S. Securities and Exchange Commission’s website at www.sec.gov. You can also review and obtain copies of Forms N-Q at the U.S. Securities and Exchange Commission’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).
VOTING PROXIES ON VALIC COMPANY II PORTFOLIO SECURITIES
A description of the policies and procedures that VC II uses to determine how to vote proxies related to securities held in the Fund’s portfolios, which is available in VC II’s Statement of Additional Information, may be obtained without charge upon request, by calling 800-448-2542. This information is also available from the EDGAR database on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.
PROXY VOTING RECORD ON VALIC COMPANY II PORTFOLIO SECURITIES
Information regarding how VC II voted proxies relating to securities held in the VC II Funds portfolios during the most recent twelve month period ended June 30, is available, once filed with the U.S. Securities and Exchange Commission without charge, upon request, by calling 800-448-2542 or on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.
This report is for the information of the shareholders and variable contract owners investing in VC II. It is authorized for distribution to other persons only when preceded or accompanied by an effective prospectus which contains information on how to purchase shares and other pertinent information.
If you would like further information about this material or products issued by VALIC or American General Life Insurance Company, please contact your financial professional.
The accompanying report has not been audited by independent accountants and accordingly no opinion has been expressed thereon.
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VALIC Company II P.O. Box 3206 |
PRSRT STD U.S. POSTAGE PAID LANCASTER, PA PERMIT NO. 1765 |
VC 11387 (02/2017) J74498
Item 2. | Code of Ethics. |
Not applicable.
Item 3. | Audit Committee Financial Expert. |
Not applicable.
Item 4. | Principal Accountant Fees and Services. |
Not applicable.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Investments. |
Included in Item 1 to the Form.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407)(as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a-101), or this Item 10.
Item 11. | Controls and Procedures. |
(a) | An evaluation was performed within 90 days of the filing of this report, under the supervision and with the participation of the registrant’s management, including the President and Treasurer, of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures (as defined under Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based on that evaluation, the registrant’s management, including the President and Treasurer, concluded that the registrant’s disclosure controls and procedures are effective. |
(b) | There was no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.3a-3(d))) that occurred during the registrant’s the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | Exhibits. |
(a) | (1) Not applicable. |
(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(3) Not applicable.
(b) | Certification pursuant to Rule 30a-2 (b) under the Investment Company Act of 1940 (17 CFR 270.30a-2 (a)) and Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
VALIC Company II | ||
By: | /s/ John T. Genoy | |
John T. Genoy | ||
President |
Date: May 08, 2017
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ John T. Genoy | |
John T. Genoy | ||
President |
Date: May 08, 2017
By: | /s/ Gregory R. Kingston | |
Gregory R. Kingston | ||
Treasurer |
Date: May 08, 2017
This ‘N-CSRS’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/31/17 | ||||
Filed on / Effective on: | 5/8/17 | |||
4/24/17 | ||||
4/21/17 | 497, 497K | |||
4/3/17 | 497, 497K | |||
For Period End: | 2/28/17 | N-MFP2, NSAR-A | ||
1/1/17 | ||||
10/29/16 | ||||
10/7/16 | N-MFP1 | |||
9/30/16 | N-MFP1 | |||
9/28/16 | 485BPOS | |||
9/1/16 | ||||
8/31/16 | 24F-2NT, N-CSR, N-MFP1, NSAR-B | |||
12/22/10 | ||||
1/23/01 | ||||
1/1/01 | ||||
5/6/98 | ||||
List all Filings |