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Valic Co II – ‘N-CSRS’ for 2/28/19

On:  Wednesday, 5/8/19, at 3:32pm ET   ·   Effective:  5/8/19   ·   For:  2/28/19   ·   Accession #:  1193125-19-141323   ·   File #:  811-08789

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 5/08/19  Valic Co II                       N-CSRS      2/28/19    3:10M                                    Donnelley … Solutions/FAAggressive Growth Lifestyle Fund VAGLXCapital Appreciation Fund VCCAXConservative Growth Lifestyle Fund VCGLXCore Bond Fund VCCBXGovernment Money Market II Fund VIIXXHigh Yield Bond Fund VCHYXInternational Opportunities Fund VISEXLarge Cap Value Fund VACVXMid Cap Growth Fund VAMGXMid Cap Value Fund VMCVXModerate Growth Lifestyle Fund VMGLXSmall Cap Growth Fund VASMXSmall Cap Value Fund VCSVXStrategic Bond Fund VCSBXU.S. Socially Responsible Fund VCSRX

Certified Semi-Annual Shareholder Report by a Management Investment Company   —   Form N-CSR
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-CSRS      Certified Semi-Annual Shareholder Report by a       HTML   6.85M 
                Management Investment Company                                    
 3: EX-99.906.CERT  Miscellaneous Exhibit                           HTML      6K 
 2: EX-99.CERT  Miscellaneous Exhibit                               HTML     18K 


‘N-CSRS’   —   Certified Semi-Annual Shareholder Report by a Management Investment Company
Document Table of Contents

Page (sequential)   (alphabetic) Top
 
11st Page  –  Filing Submission
"Table of Contents
"President's Letter
"Expense Example
"Aggressive Growth Lifestyle Fund
"Capital Appreciation Fund
"Conservative Growth Lifestyle Fund
"Core Bond Fund
"Government Money Market II Fund
"High Yield Bond Fund
"International Opportunities Fund
"Large Cap Value Fund
"Mid Cap Growth Fund
"Mid Cap Value Fund
"Moderate Growth Lifestyle Fund
"Small Cap Growth Fund
"Small Cap Value Fund
"Socially Responsible Fund
"Strategic Bond Fund
"Statements of Assets and Liabilities
"Statements of Operations
"Statements of Changes in Net Assets
"Notes to Financial Statements
"Financial Highlights
"Trustee and Officer Information

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  N-CSRS  
Table of Contents

 

 

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)

 

 

John T. Genoy

President

SunAmerica Asset Management, LLC

Harborside 5

185 Hudson Street, Suite 3300

Jersey City, NJ 07311

(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, 2019

 

 

 


Table of Contents

Item 1. Reports to Stockholders

 


Table of Contents

LOGO

This disclosure does not apply to investors who own fund shares beneficially through a variable insurance contract. Each applicable insurance company will provide information regarding delivery of fund shareholder reports to its contract owners.

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Registrant’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Registrant. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Registrant or VALIC Retirement Services Company (VRSCO), as your retirement plan recordkeeper, electronically by contacting us at 1-800-448-2542 or logging into your account at VALIC Online at www.valic.com.

You may elect to receive all future reports in paper free of charge. You can inform the Registrant or VRSCO that you wish to continue receiving paper copies of your shareholder reports by contacting 1-866-345-5954 or visiting FundReports.com and providing the 20-digit unique ID located above or below your mailing address. Your election to receive reports in paper will apply to all funds held within your employer-sponsored retirement plan account with VRSCO.


Table of Contents

VALIC Company II

SEMI-ANNUAL REPORT FEBRUARY 28, 2019


 

TABLE OF CONTENTS

 

President’s Letter

     1  

Expense Example

     3  

Portfolios of Investments:

        

Aggressive Growth Lifestyle Fund

     5  

Capital Appreciation Fund

     7  

Conservative Growth Lifestyle Fund

     10  

Core Bond Fund

     12  

Government Money Market II Fund

     34  

High Yield Bond Fund

     36  

International Opportunities Fund

     48  

Large Cap Value Fund

     55  

Mid Cap Growth Fund

     59  

Mid Cap Value Fund

     63  

Moderate Growth Lifestyle Fund

     68  

Small Cap Growth Fund

     70  

Small Cap Value Fund

     74  

Socially Responsible Fund

     83  

Strategic Bond Fund

     89  

Statements of Assets and Liabilities

     119  

Statements of Operations

     121  

Statements of Changes in Net Assets

     123  

Notes to Financial Statements

     127  

Financial Highlights

     145  

Trustee and Officer Information

     153  


Table of Contents

VALIC Company II

PRESIDENT’S LETTER (unaudited)


 

Dear Valued Investor:

 

We are pleased to provide you with the 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, 2019. We encourage you to carefully read this report and thank you for your investment with VALIC Company II.

 

As anticipated, the Federal Reserve (the “Fed”) continued to raise the federal funds target rate, increasing the rate from 2.00% at the start of the period to 2.50% with two rate hikes during the reporting period. However, toward the end of the period, the Fed signaled a pause with respect to further interest rate increases, citing concern over global growth and trade policy uncertainty. The Fed reiterated that future interest rate policy would be data dependent and not run on a preordained schedule.

 

Domestically, the total return for the S&P 500® Index,* widely regarded as the best single gauge of the U.S. equity market, declined 3.04% over the six-month period. The period started strong with the September jobs report showing unemployment at 3.7% in an environment of modest wage growth and stable inflation. Furthermore, consumer confidence hit an 18-year high in September, according to The Conference Board.

 

However, the fourth quarter hit investors hard; equity markets posted double-digit losses and saw their first annual decline since 2008. Concerns over the US-China trade disputes and impact of higher tariffs combined with worries that corporate earnings may have peaked took its toll on the equity markets. The final month of the year saw a steep decline in the markets, with the S&P 500 falling 9.03%.

 

Relief came in early 2019 with the 312,000 new jobs in December’s jobs report doubling expectations, wage growth increasing to 3.2% annually and the employment participation rate rising from 62.9% to 63.1%. These conditions combined with the aforementioned pause of the Fed’s interest rate increases reinvigorated the markets and the S&P 500 returned 11.48% over the first two months of 2019.

 

Fixed income markets benefited from the flight from equity volatility, with the Bloomberg Barclays U.S. Aggregate Bond Index,** a broad measure of the U.S. bond market, returning 1.99% for the six-month period. The treasury yield curve continued to flatten as the spread narrowed between the 2- and 10-Year Treasuries. Long Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Long Index,*** returned 0.54% for the period. Risk assets, predominantly high yield assets, also gained ground as evidenced by the 1.94% return of the FTSE High Yield Market Index. ****

 

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, declined 3.58%. The period began with increased tariffs on Chinese goods brought into the US, intensifying the trade war. However, these were later suspended, creating policy uncertainty. The European Union’s economic growth continued its slowdown, compounded by complications with Brexit, decreased exports to China and political tensions in Italy and France. Both the European Central Bank and the Bank of Japan maintained their negative interest rate policies. The MSCI Emerging Markets Index (net), ****** designed to measure equity market performance in global emerging markets, returned 0.33%. Currency depreciation in several emerging markets, notably Turkey, Argentina and India, increased inflation in those countries. Chinese stimulus to counteract their economic slowdown helped to lift other Asian equities; however Chinese imports and exports continued to decrease.

 

Planning for your financial future in such an uncertain world should be a top priority. We believe your investment with VALIC Company II is an important step that may help you reach your long-term financial goals. Another important step is to meet with your financial advisor periodically to ensure that you maintain a diversified portfolio appropriate for your goals and risk tolerance.

 

We appreciate being part of your investment program and thank you for your ongoing confidence in us. We look forward to helping you meet your investment goals in the years ahead.

 

Sincerely,

 

LOGO

 

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 U.S. Treasury Long Index includes all publicly issued, U.S. Treasury securities that have a remaining maturity of 10 or more years, are rated investment grade, and have $250 million or more of outstanding face value.

 

1


Table of Contents
****

The FTSE High Yield Market Index measures the performance of high-yield debt issued by corporations domiciled in the US or Canada, including cash-pay, deferred interest securities, and debt issued under Rule 144A in unregistered form.

*****

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 country indexes: 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.

******

The MSCI Emerging Markets Index (net) is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging market country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indexes) 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.

 

2


Table of Contents

VALIC Company II

EXPENSE EXAMPLE — February 28, 2019 (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, 2018 and held until February 28, 2019. 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 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 your Variable Contract, Plan or IRAs.

 

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, 2019 to estimate the expenses you paid on your account during this period. The “Expenses Paid During the Six Months Ended February 28, 2019 column and the “Annualized Expense Ratio” column do not include fees and expenses that may be charged by the Variable Contracts, Plans and IRAs, in which the Funds are offered. Had these fees and expenses been included, the “Expenses Paid During the Six Months Ended February 28, 2019 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, 2019 column and the “Annualized Expense Ratio” column do not include fees and expenses that may be charged by the Variable Contracts, Plans or IRAs in which the Funds are offered. Had these fees and expenses been included, the “Expenses Paid During the Six Months Ended February 28, 2019 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 IRAs. 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.

 

3


Table of Contents

VALIC Company II

EXPENSE EXAMPLE — February 28, 2019 (unaudited) — (continued)


 

 

     Actual

     Hypothetical

 

Fund


   Beginning
Account Value
at September  1,
2018


     Ending
Account Value
Using Actual
Return at
February  28,
2019


     Expenses Paid
During the Six
Months Ended
February  28,
2019
*


     Beginning
Account Value
at September 1,
2018


     Ending
Account Value
Using a
Hypothetical
5% Annual
Return at

February 28,
2019


     Expenses Paid
During the

Six Months Ended
February 28,
2019
*


     Annualized
Expense
Ratio


 

Aggressive Growth Lifestyle#

   $ 1,000.00      $ 968.25      $ 0.49      $ 1,000.00      $ 1,024.30      $ 0.50        0.10

Capital Appreciation#

   $ 1,000.00      $ 954.30      $ 4.12      $ 1,000.00      $ 1,020.58      $ 4.26        0.85

Conservative Growth Lifestyle#

   $ 1,000.00      $ 991.88      $ 0.49      $ 1,000.00      $ 1,024.30      $ 0.50        0.10

Core Bond#

   $ 1,000.00      $ 1,017.69      $ 3.85      $ 1,000.00      $ 1,020.98      $ 3.86        0.77

Government Money Market II#

   $ 1,000.00      $ 1,008.28      $ 2.74      $ 1,000.00      $ 1,022.07      $ 2.76        0.55

High Yield Bond#

   $ 1,000.00      $ 1,019.92      $ 4.81      $ 1,000.00      $ 1,020.03      $ 4.81        0.96

International Opportunities#

   $ 1,000.00      $ 899.58      $ 4.71      $ 1,000.00      $ 1,019.84      $ 5.01        1.00

Large Cap Value#

   $ 1,000.00      $ 949.03      $ 3.91      $ 1,000.00      $ 1,020.78      $ 4.06        0.81

Mid Cap Growth#

   $ 1,000.00      $ 961.72      $ 4.13      $ 1,000.00      $ 1,020.58      $ 4.26        0.85

Mid Cap Value#

   $ 1,000.00      $ 943.97      $ 5.06      $ 1,000.00      $ 1,019.59      $ 5.26        1.05

Moderate Growth Lifestyle#

   $ 1,000.00      $ 977.33      $ 0.49      $ 1,000.00      $ 1,024.30      $ 0.50        0.10

Small Cap Growth#

   $ 1,000.00      $ 937.79      $ 5.57      $ 1,000.00      $ 1,019.04      $ 5.81        1.16

Small Cap Value#

   $ 1,000.00      $ 902.80      $ 4.48      $ 1,000.00      $ 1,020.08      $ 4.76        0.95

Socially Responsible#

   $ 1,000.00      $ 974.45      $ 2.74      $ 1,000.00      $ 1,022.02      $ 2.81        0.56

Strategic Bond

   $ 1,000.00      $ 1,023.02      $ 4.36      $ 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, 2019 and the “Annualized Expense Ratio” would have been higher.

 

4


Table of Contents

VALIC Company II Aggressive Growth Lifestyle Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Domestic Equity Investment Companies

     56.4

Domestic Fixed Income Investment Companies

     18.3  

International Equity Investment Companies

     17.8  

Real Estate Investment Companies

     4.9  

International Fixed Income Investment Companies

     2.6  
    


       100.0
    


 

*

Calculated as a percentage of net assets

 

 

5


Table of Contents

VALIC Company II Aggressive Growth Lifestyle Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Shares      Value
(Note 2)
 

AFFILIATED REGISTERED INVESTMENT COMPANIES#(2) — 100.0%

 

Domestic Equity Investment Companies — 56.4%

 

VALIC Co. I Blue Chip Growth Fund

     97,747      $ 2,135,765  

VALIC Co. I Dividend Value Fund

     2,520,832        32,392,689  

VALIC Co. I Large Cap Core Fund

     730,189        8,813,381  

VALIC Co. I Large Capital Growth Fund

     253,088        4,175,951  

VALIC Co. I Mid Cap Index Fund

     893,284        24,824,372  

VALIC Co. I Mid Cap Strategic Growth Fund

     589,091        9,902,623  

VALIC Co. I Nasdaq-100 Index Fund

     1,250,737        17,873,028  

VALIC Co. I Science & Technology Fund

     832,524        26,607,456  

VALIC Co. I Small Cap Index Fund

     375,110        8,319,941  

VALIC Co. I Small Cap Special Values Fund

     759,753        10,332,646  

VALIC Co. I Stock Index Fund

     1,340,763        55,132,177  

VALIC Co. I Value Fund

     752,231        13,645,466  

VALIC Co. II Capital Appreciation Fund

     1,096,261        21,059,182  

VALIC Co. II Large Cap Value Fund

     1,647,014        35,575,511  

VALIC Co. II Mid Cap Growth Fund

     939,168        9,673,429  

VALIC Co. II Mid Cap Value Fund

     976,584        20,400,844  

VALIC Co. II Small Cap Growth Fund

     414,076        9,051,693  

VALIC Co. II Small Cap Value Fund

     1,223,956        17,392,419  
             


Total Domestic Equity Investment Companies

                 

(cost $303,321,673)

              327,308,573  
      


Domestic Fixed Income Investment Companies — 18.3%

 

VALIC Co. I Capital Conservation Fund

     917,005        8,959,139  

VALIC Co. I Government Securities Fund

     477,900        4,998,838  

VALIC Co. I Inflation Protected Fund

     2,219,683        24,305,534  

VALIC Co. II Core Bond Fund

     1,043,387        11,404,220  

VALIC Co. II High Yield Bond Fund

     3,689,435        28,334,862  

VALIC Co. II Strategic Bond Fund

     2,517,070        27,964,643  
             


Total Domestic Fixed Income Investment Companies

                 

(cost $105,246,114)

              105,967,236  
      


Security Description    Shares     Value
(Note 2)
 

                  

International Equity Investment Companies — 17.8%

 

VALIC Co. I Emerging Economies Fund

     3,557,570     $ 29,278,799  

VALIC Co. I Foreign Value Fund

     3,026,952       29,845,750  

VALIC Co. I International Equities Index Fund

     2,026,623       14,328,227  

VALIC Co. I International Growth Fund

     583,000       8,412,694  

VALIC Co. II International Opportunities Fund

     1,115,585       21,385,773  
            


Total International Equity Investment Companies

                

(cost $105,889,342)

             103,251,243  
     


International Fixed Income Investment Companies — 2.6%

 

VALIC Co. I International Government Bond Fund

                

(cost $15,297,354)

     1,306,780       15,393,873  
            


Real Estate Investment Companies — 4.9%

 

VALIC Co. I Global Real Estate Fund

                

(cost $27,561,637)

     3,541,543       28,367,758  
            


TOTAL INVESTMENTS

                

(cost $557,316,120)(1)

     100.0     580,288,683  

Other assets less liabilities

     0.0       112,644  
    


 


NET ASSETS

     100.0   $ 580,401,327  
    


 



#

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 5 for cost of investments on a tax basis.

(2)

See Note 3

 

The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2019 (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

   $ 580,288,683      $         —        $         —        $ 580,288,683  
    


  


  


  



*

For a detailed presentation of investments, please refer to the Portfolio of Investments.

 

See Notes to Financial Statements

 

6


Table of Contents

VALIC Company II Capital Appreciation Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Finance — Credit Card

     11.1

Applications Software

     8.0  

Medical — Drugs

     6.8  

E-Commerce/Products

     5.0  

Electronic Components — Semiconductors

     4.9  

Computers

     4.6  

Web Portals/ISP

     4.5  

Aerospace/Defense

     3.3  

E-Commerce/Services

     2.7  

Real Estate Investment Trusts

     2.5  

Medical — Biomedical/Gene

     2.3  

Oil Companies — Exploration & Production

     2.2  

Retail — Auto Parts

     2.0  

Cable/Satellite TV

     2.0  

Internet Security

     1.9  

Computer Data Security

     1.9  

Airlines

     1.8  

Containers — Paper/Plastic

     1.7  

Transport — Rail

     1.7  

Electronic Forms

     1.7  

Auto/Truck Parts & Equipment — Original

     1.6  

Building Products — Wood

     1.6  

Distribution/Wholesale

     1.5  

Computers — Memory Devices

     1.5  

Retail — Discount

     1.5  

Internet Infrastructure Software

     1.4  

Pharmacy Services

     1.4  

Insurance — Property/Casualty

     1.2  

Medical Instruments

     1.2  

Insurance — Multi-line

     1.2  

Retail — Apparel/Shoe

     1.1  

Food — Misc./Diversified

     1.1  

Banks — Super Regional

     0.9  

Internet Content — Entertainment

     0.9  

Food — Confectionery

     0.8  

Food — Wholesale/Distribution

     0.8  

Radio

     0.8  

Finance — Investment Banker/Broker

     0.8  

Apparel Manufacturers

     0.7  

Retail — Mail Order

     0.7  

Medical — Hospitals

     0.7  

Commercial Services

     0.5  

Chemicals — Diversified

     0.5  

Retail — Major Department Stores

     0.5  

Commercial Services — Finance

     0.4  

Registered Investment Companies

     0.4  

Enterprise Software/Service

     0.3  

Batteries/Battery Systems

     0.3  
    


       98.9%  
    


 

*

Calculated as a percentage of net assets

 

 

7


Table of Contents

VALIC Company II Capital Appreciation Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Shares      Value
(Note 2)
 

COMMON STOCKS — 98.5%

 

Aerospace/Defense — 3.3%

 

Boeing Co.

     7,710      $ 3,392,092  
             


Airlines — 1.8%

 

Southwest Airlines Co.

     33,209        1,861,032  
             


Apparel Manufacturers — 0.7%

 

Deckers Outdoor Corp.†

     5,194        768,452  
             


Applications Software — 8.0%

 

Microsoft Corp.

     51,606        5,781,420  

salesforce.com, Inc.†

     15,559        2,546,231  
             


                8,327,651  
             


Auto/Truck Parts & Equipment-Original — 1.6%

 

Allison Transmission Holdings, Inc.

     34,397        1,709,531  
             


Banks - Super Regional — 0.9%

 

US Bancorp

     18,570        959,883  
             


Batteries/Battery Systems — 0.3%

 

Energizer Holdings, Inc.

     7,181        329,464  
             


Building Products - Wood — 1.6%

 

Masco Corp.

     43,167        1,621,353  
             


Cable/Satellite TV — 2.0%

 

Comcast Corp., Class A

     53,611        2,073,137  
             


Chemicals - Diversified — 0.5%

 

Westlake Chemical Corp.

     7,159        500,199  
             


Commercial Services — 0.5%

 

CoStar Group, Inc.†

     1,245        569,625  
             


Commercial Services - Finance — 0.4%

 

Sabre Corp.

     16,573        371,732  
             


Computer Data Security — 1.9%

 

Fortinet, Inc.†

     22,753        1,974,733  
             


Computers — 4.6%

 

Apple, Inc.

     27,582        4,775,823  
             


Computers - Memory Devices — 1.5%

 

NetApp, Inc.

     23,754        1,548,761  
             


Containers - Paper/Plastic — 1.7%

 

Berry Global Group, Inc.†

     33,452        1,755,226  
             


Distribution/Wholesale — 1.5%

 

WW Grainger, Inc.

     5,231        1,594,252  
             


E-Commerce/Products — 5.0%

 

Amazon.com, Inc.†

     3,198        5,244,176  
             


E-Commerce/Services — 2.7%

 

Expedia Group, Inc.

     14,278        1,760,620  

TripAdvisor, Inc.†#

     20,668        1,098,918  
             


                2,859,538  
             


Electronic Components - Semiconductors — 4.9%

 

Intel Corp.

     35,985        1,905,766  

Texas Instruments, Inc.

     6,781        717,294  

Xilinx, Inc.

     19,647        2,461,769  
             


                5,084,829  
             


Electronic Forms — 1.7%

 

Adobe, Inc.†

     6,622        1,738,275  
             


Enterprise Software/Service — 0.3%

 

Ultimate Software Group, Inc.†

     1,092        361,998  
             


Finance - Credit Card — 11.1%

 

Alliance Data Systems Corp.

     7,232        1,251,136  

American Express Co.

     21,573        2,324,275  

Discover Financial Services

     13,639        976,689  
Security Description    Shares      Value
(Note 2)
 

                   

Finance - Credit Card (continued)

 

Mastercard, Inc., Class A

     13,654      $ 3,069,010  

Visa, Inc., Class A

     26,318        3,898,222  
             


                11,519,332  
             


Finance - Investment Banker/Broker — 0.8%

 

Evercore, Inc., Class A

     8,733        804,309  
             


Food - Confectionery — 0.8%

 

Hershey Co.

     7,770        859,984  
             


Food - Misc./Diversified — 1.1%

 

Post Holdings, Inc.†

     11,130        1,133,924  
             


Food - Wholesale/Distribution — 0.8%

 

Sysco Corp.

     12,709        858,493  
             


Insurance - Multi-line — 1.2%

 

Allstate Corp.

     13,426        1,267,146  
             


Insurance - Property/Casualty — 1.2%

 

Progressive Corp.

     17,745        1,293,611  
             


Internet Content - Entertainment — 0.9%

 

Facebook, Inc., Class A†

     5,841        943,029  
             


Internet Infrastructure Software — 1.4%

 

F5 Networks, Inc.†

     8,796        1,478,959  
             


Internet Security — 1.9%

 

Palo Alto Networks, Inc.†

     8,214        2,022,862  
             


Medical Instruments — 1.2%

 

Edwards Lifesciences Corp.†

     3,609        610,968  

Intuitive Surgical, Inc.†

     1,220        668,084  
             


                1,279,052  
             


Medical - Biomedical/Gene — 2.3%

 

Amgen, Inc.

     12,869        2,446,140  
             


Medical - Drugs — 6.8%

 

AbbVie, Inc.

     30,943        2,451,923  

Eli Lilly & Co.

     20,569        2,597,659  

Jazz Pharmaceuticals PLC†

     6,790        950,804  

Zoetis, Inc.

     11,441        1,078,086  
             


                7,078,472  
             


Medical - Hospitals — 0.7%

 

HCA Healthcare, Inc.

     4,939        686,719  
             


Oil Companies - Exploration & Production — 2.2%

 

ConocoPhillips

     21,481        1,457,486  

EOG Resources, Inc.

     8,510        799,940  
             


                2,257,426  
             


Pharmacy Services — 1.4%

 

Cigna Corp.

     8,312        1,449,945  
             


Radio — 0.8%

 

Sirius XM Holdings, Inc.#

     140,822        835,074  
             


Real Estate Investment Trusts — 2.5%

 

Equity LifeStyle Properties, Inc.

     5,866        637,282  

Essex Property Trust, Inc.

     6,977        1,952,444  
             


                2,589,726  
             


Retail - Apparel/Shoe — 1.1%

 

Burlington Stores, Inc.†

     6,739        1,143,878  
             


Retail - Auto Parts — 2.0%

 

AutoZone, Inc.†

     554        520,189  

O’Reilly Automotive, Inc.†

     4,284        1,593,477  
             


                2,113,666  
             


 

 

8


Table of Contents

VALIC Company II Capital Appreciation Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares     Value
(Note 2)
 

COMMON STOCKS (continued)

 

Retail - Discount — 1.5%

 

Walmart, Inc.

     15,533     $ 1,537,612  
            


Retail - Mail Order — 0.7%

 

Williams-Sonoma, Inc.#

     12,539       729,268  
            


Retail - Major Department Stores — 0.5%

 

Nordstrom, Inc.#

     10,269       485,518  
            


Transport - Rail — 1.7%

 

Genesee & Wyoming, Inc., Class A†

     21,386       1,753,652  
            


Web Portals/ISP — 4.5%

 

Alphabet, Inc., Class A†

     1,044       1,176,118  

Alphabet, Inc., Class C†

     3,093       3,463,913  
            


               4,640,031  
            


Total Long-Term Investment Securities

                

(cost $89,943,260)

             102,629,590  
            


SHORT-TERM INVESTMENT SECURITIES — 0.4%

 

Registered Investment Companies — 0.4%

 

State Street Navigator Securities Lending Government Money Market Portfolio
2.43%(1)(2)

                

(cost $359,572)

     359,572       359,572  
            


TOTAL INVESTMENTS

                

(cost $90,302,832)(3)

     98.9     102,989,162  

Other assets less liabilities

     1.1       1,183,270  
    


 


NET ASSETS

     100.0   $ 104,172,432  
    


 



Non-income producing security

#

The security or a portion thereof is out on loan (see Note 2).

(1)

The rate shown is the 7-day yield as of February 28, 2019.

(2)

At February 28, 2019, the Fund had loaned securities with a total value of $2,289,924. This was secured by collateral of $359,572, which was received in cash and subsequently invested in short-term investments currently valued at $359,572 as reported in the Portfolio of Investments. Additional collateral of $1,991,611 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, 2019


 

United States Treasury Bills

  0.00%   03/28/2019 to 06/20/2019   $ 62,502  

United States Treasury Notes/Bonds

  zero coupon to 8.75%   03/15/2019 to 11/15/2048     1,929,109  

 

(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, 2019 (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

   $ 102,629,590      $         —        $         —        $ 102,629,590  

Short-Term Investment Securities

     359,572        —          —          359,572  
    


  


  


  


Total Investments at Value

   $ 102,989,162      $ —        $ —        $ 102,989,162  
    


  


  


  



*

For a detailed presentation of investments, please refer to the Portfolio of Investments.

 

See Notes to Financial Statements

 

9


Table of Contents

VALIC Company II Conservative Growth Lifestyle Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Domestic Fixed Income Investment Companies

     55.6

Domestic Equity Investment Companies

     28.4  

International Equity Investment Companies

     8.5  

International Fixed Income Investment Companies

     4.7  

Real Estate Investment Companies

     2.8  
    


       100.0
    


 

*

Calculated as a percentage of net assets

 

10


Table of Contents

VALIC Company II Conservative Growth Lifestyle Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Shares          
Value
(Note 2)
 

AFFILIATED REGISTERED INVESTMENT COMPANIES#(1) — 100.0%

 

Domestic Equity Investment Companies — 28.4%

 

VALIC Co. I Dividend Value Fund

     1,035,703      $ 13,308,788  

VALIC Co. I Large Cap Core Fund

     197,475        2,383,525  

VALIC Co. I Large Capital Growth Fund

     643        10,603  

VALIC Co. I Mid Cap Index Fund

     224,722        6,245,032  

VALIC Co. I Mid Cap Strategic Growth Fund

     105,040        1,765,729  

VALIC Co. I Nasdaq-100 Index Fund

     378,052        5,402,369  

VALIC Co. I Science & Technology Fund

     242,502        7,750,367  

VALIC Co. I Small Cap Index Fund

     57,677        1,279,275  

VALIC Co. I Small Cap Special Values Fund

     348,822        4,743,975  

VALIC Co. I Stock Index Fund

     374,476        15,398,470  

VALIC Co. I Value Fund

     177,437        3,218,710  

VALIC Co. II Capital Appreciation Fund

     268,561        5,159,065  

VALIC Co. II Large Cap Value Fund

     453,801        9,802,109  

VALIC Co. II Mid Cap Growth Fund

     170,377        1,754,881  

VALIC Co. II Mid Cap Value Fund

     317,958        6,642,146  

VALIC Co. II Small Cap Growth Fund

     80,930        1,769,137  

VALIC Co. II Small Cap Value Fund

     327,277        4,650,607  
             


Total Domestic Equity Investment Companies

                 

(cost $86,805,109)

              91,284,788  
             


Domestic Fixed Income Investment Companies — 55.6%

 

VALIC Co. I Capital Conservation Fund

     1,696,012        16,570,036  

VALIC Co. I Government Securities Fund

     792,988        8,294,655  

VALIC Co. I Inflation Protected Fund

     1,242,824        13,608,920  

VALIC Co. II Core Bond Fund

     4,006,795        43,794,266  

VALIC Co. II High Yield Bond Fund

     4,473,148        34,353,774  

VALIC Co. II Strategic Bond Fund

     5,599,820        62,214,004  
             


Total Domestic Fixed Income Investment Companies

                 

(cost $177,820,082)

              178,835,655  
             


Security Description    Shares         
Value
(Note 2)
 

                  

International Equity Investment Companies — 8.5%

 

VALIC Co. I Emerging Economies Fund

     1,043,873     $ 8,591,073  

VALIC Co. I Foreign Value Fund

     1,001,505       9,874,842  

VALIC Co. I International Equities Index Fund

     270,541       1,912,723  

VALIC Co. I International Growth Fund

     92,925       1,340,908  

VALIC Co. II International Opportunities Fund

     290,621       5,571,200  
            


Total International Equity Investment Companies

                

(cost $27,811,589)

             27,290,746  
            


International Fixed Income Investment Companies — 4.7%

 

VALIC Co. I International Government Bond Fund
(cost $15,059,039)

     1,286,102       15,150,281  
            


Real Estate Investment Companies — 2.8%

 

VALIC Co. I Global Real Estate Fund
(cost $8,582,216)

     1,114,502       8,927,164  
            


TOTAL INVESTMENTS

 

       

(cost $316,078,035)(2)

     100.0     321,488,634  

Liabilities in excess of other assets

     (0.0     (437
    


 


NET ASSETS

     100.0   $ 321,488,197  
    


 



#

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, 2019 (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

   $ 321,488,634      $         —        $         —        $ 321,488,634  
    


  


  


  



*

For a detailed presentation of investments, please refer to the Portfolio of Investments.

 

See Notes to Financial Statements

 

11


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Federal National Mtg. Assoc.

     23.7

Federal Home Loan Mtg. Corp.

     9.1  

United States Treasury Notes

     8.1  

Registered Investment Companies

     7.7  

Diversified Banking Institutions

     5.4  

Government National Mtg. Assoc.

     4.5  

United States Treasury Bonds

     3.2  

Diversified Financial Services

     2.8  

Banks — Commercial

     2.4  

Electric — Integrated

     2.4  

U.S. Government Treasuries

     2.2  

Pipelines

     1.9  

Telephone — Integrated

     1.5  

Cable/Satellite TV

     1.2  

Auto — Cars/Light Trucks

     1.2  

Oil Companies — Exploration & Production

     1.1  

Real Estate Investment Trusts

     1.0  

Banks — Super Regional

     0.8  

Oil Companies — Integrated

     0.8  

Food — Misc./Diversified

     0.7  

Medical — Drugs

     0.7  

Diversified Manufacturing Operations

     0.7  

Medical Labs & Testing Services

     0.6  

Machinery — Farming

     0.6  

Cellular Telecom

     0.6  

Chemicals — Diversified

     0.6  

Medical — HMO

     0.5  

Aerospace/Defense — Equipment

     0.5  

Pharmacy Services

     0.5  

Retail — Restaurants

     0.5  

Brewery

     0.5  

Computer Services

     0.5  

Paper & Related Products

     0.4  

Insurance — Life/Health

     0.4  

Savings & Loans/Thrifts

     0.4  

Finance — Credit Card

     0.4  

Finance — Other Services

     0.4  

Broadcast Services/Program

     0.3  

Electric — Distribution

     0.3  

Oil — Field Services

     0.3  

Finance — Consumer Loans

     0.3  

Networking Products

     0.3  

Beverages — Non-alcoholic

     0.3  

Computers

     0.3  

Electronic Components — Semiconductors

     0.3  

Transport — Equipment & Leasing

     0.3  

Machinery — Construction & Mining

     0.3  

SupraNational Banks

     0.3  

Satellite Telecom

     0.2  

Transport — Rail

     0.2  

Television

     0.2  

Medical — Hospitals

     0.2  

Insurance — Mutual

     0.2  

Retail — Mail Order

     0.2  

Electronic Measurement Instruments

     0.2  

Enterprise Software/Service

     0.2  

Food — Meat Products

     0.2  

Trucking/Leasing

     0.2  

Tools — Hand Held

     0.2  

Banks — Special Purpose

     0.2  

Medical — Wholesale Drug Distribution

     0.2  

Retail — Discount

     0.2  

Insurance — Multi-line

     0.2  

Medical Instruments

     0.2  

Building & Construction Products — Misc.

     0.2  

Machinery — General Industrial

     0.2  

Agricultural Chemicals

     0.2  

Medical — Biomedical/Gene

     0.2  

Sovereign Agency

     0.2  

Real Estate Management/Services

     0.2  

Medical — Generic Drugs

     0.2  

Retail — Building Products

     0.2  

Office Supplies & Forms

     0.2  

Auto/Truck Parts & Equipment — Original

     0.3  

Sovereign

     0.1  

Electric — Generation

     0.1  

Gas — Distribution

     0.1  

Food — Retail

     0.1  

Electronic Parts Distribution

     0.1  

Insurance — Property/Casualty

     0.1  

Retail — Automobile

     0.1  

Machinery — Electrical

     0.1  

Transport — Truck

     0.1  

Insurance Brokers

     0.1  

Finance — Investment Banker/Broker

     0.1  

Multimedia

     0.1  

Semiconductor Equipment

     0.1  

Aerospace/Defense

     0.1  

Cosmetics & Toiletries

     0.1  

Oil Field Machinery & Equipment

     0.1  

Chemicals — Specialty

     0.1  

Building — Heavy Construction

     0.1  

Semiconductor Components — Integrated Circuits

     0.1  

Building & Construction — Misc.

     0.1  

Diversified Minerals

     0.1  

Security Services

     0.1  

Computers — Integrated Systems

     0.1  

Steel — Producers

     0.1  

Building — Residential/Commercial

     0.1  

Metal — Copper

     0.1  

Auto — Heavy Duty Trucks

     0.1  

Advertising Agencies

     0.1  

Hotels/Motels

     0.1  

Banks — Money Center

     0.1  

Rental Auto/Equipment

     0.1  

Batteries/Battery Systems

     0.1  

Commercial Services

     0.1  

Containers — Metal/Glass

     0.1  

Oil & Gas Drilling

     0.1  

Retail — Office Supplies

     0.1  

Transport — Marine

     0.1  

Transport — Services

     0.1  

Medical Products

     0.1  

Finance — Mortgage Loan/Banker

     0.1  

Petrochemicals

     0.1  

Coal

     0.1  

Commercial Services — Finance

     0.1  

E-Commerce/Products

     0.1  

Retail — Appliances

     0.1  

Energy — Alternate Sources

     0.1  

Internet Content — Entertainment

     0.1  

Poultry

     0.1  

Metal Processors & Fabrication

     0.1  

Metal — Iron

     0.1  

Building Societies

     0.1  

Real Estate Operations & Development

     0.1  

Casino Services

     0.1  

Chemicals — Fibers

     0.1  

Investment Companies

     0.1  

Containers — Paper/Plastic

     0.1  

Internet Connectivity Services

     0.1  

Retail — Drug Store

     0.1  
    


       104.9
    


 

*

Calculated as a percentage of net assets

 

 

12


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited) — (continued)


 

Credit Quality†#

 

Aaa

     53.0

Aa

     2.9  

A

     10.0  

Baa

     19.3  

Ba

     5.0  

B

     4.4  

Caa

     1.1  

Not Rated@

     4.3  
    


       100.0
    


 

Source: Moody's

#

Calculated as percentage of total debt issues, excluding short-term securities.

@

Represent debt issues that either have no rating, or the rating is unavailable from the data source.

 

 

13


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

ASSET BACKED SECURITIES — 2.8%

 

Diversified Financial Services — 2.8%

 

American Express Credit Account Master Trust
Series 2018-4, Class A
2.99% due 12/15/2023

   $ 150,000      $ 150,790  

American Express Credit Account Master Trust
Series 2018-8, Class A
3.18% due 04/15/2024

     167,000        168,883  

Avis Budget Rental Car Funding AESOP LLC
Series 2015-1A, Class A
2.50% due 07/20/2021*

     850,000        844,311  

BA Credit Card Trust
Series 2018-A2, Class A2
3.00% due 09/15/2023

     1,332,000        1,340,001  

BANK
Series 2019-BN16, Class A2
3.93% due 02/15/2052(1)

     2,377,000        2,453,564  

Benchmark Mtg. Trust
Series 2018-B1, Class A2
3.57% due 01/15/2051(1)

     1,233,000        1,255,228  

Benchmark Mtg. Trust
Series 2019-B9, Class AAB
3.93% due 03/15/2052(1)

     2,985,000        3,088,606  

CAMB Commercial Mtg. Trust FRS
Series 2019-LIFE, Class A
3.56% (1 ML + 1.07%)
due 12/15/2037*(1)

     750,000        752,347  

CarMax Auto Owner Trust
Series 2016-4, Class A4
1.60% due 06/15/2022

     1,042,000        1,020,156  

CarMax Auto Owner Trust
Series 2018-4, Class A3
3.36% due 09/15/2023

     1,000,000        1,013,617  

Chase Mtg. Finance Trust VRS
Series 2016-2, Class M2
3.75% due 12/25/2045*(2)(3)

     1,605,412        1,609,053  

Citibank Credit Card Issuance Trust
Series 2017-A3, Class A3
1.92% due 04/07/2022

     1,554,000        1,539,682  

Citibank Credit Card Issuance Trust
Series 2018-A1, Class A1
2.49% due 01/20/2023

     150,000        149,263  

Citibank Credit Card Issuance Trust
Series 2018-A6, Class A6
3.21% due 12/07/2024

     150,000        152,036  

COMM Mtg. Trust VRS
Series 2016-787S, Class B
3.83% due 02/10/2036*(1)(3)

     754,000        762,971  

Core Industrial Trust
Series 2015-CALW, Class A
3.04% due 02/10/2034*(1)

     5,692        5,699  

CSAIL Commercial Mtg. Trust
Series 2017-C8, Class A2
2.99% due 06/15/2050(1)

     1,770,000        1,764,312  

CSMC Trust
Series 2015-GLPA, Class A
3.88% due 11/15/2037*(1)

     1,447,366        1,492,238  

DBCG Mtg. Trust FRS
Series 2017-BBG, Class A
3.19% (1 ML+0.70%)
due 06/15/2034*(1)

     300,000        298,310  

Discover Card Execution Note Trust
Series 2015-A4, Class A4
2.19% due 04/17/2023

     2,256,000        2,236,373  

Discover Card Execution Note Trust
Series 2019-A1, Class A1
3.04% due 07/15/2024

     500,000        503,239  
Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Diversified Financial Services (continued)

 

Ford Credit Auto Owner Trust
Series 2018-2, Class A
3.47% due 01/15/2030*

   $ 400,000      $ 402,677  

Ford Credit Floorplan Master Owner Trust
Series 2017-1, Class A1
2.07% due 05/15/2022

     1,023,000        1,013,029  

GM Financial Consumer Automobile Receivables Trust
Series 2017-3A, Class 4A
2.13% due 03/16/2023*

     1,000,000        984,754  

GS Mtg. Securities Trust
Series 2015-GC28, Class A2
2.90% due 02/10/2048(1)

     61,000        61,008  

Honda Auto Receivables Owner Trust
Series 2019-1, Class A3
2.83% due 03/20/2023

     700,000        700,287  

JP Morgan Mtg. Trust VRS
Series 2018-1, Class A5
3.50% due 06/25/2048*(2)(3)

     2,216,912        2,202,331  

Mercedes-Benz Auto Lease Trust
Series 2019-A, Class A4
3.25% due 10/15/2024

     188,000        188,617  

Morgan Stanley Bank of America Merrill Lynch Trust
Series 2015-C23, Class A2
2.98% due 07/15/2050(1)

     1,000,000        997,321  

Morgan Stanley Capital Barclays Bank Trust
Series 2016-MART, Class A
2.20% due 09/13/2031*(1)

     2,397,000        2,351,385  

MSDB Trust VRS
Series 2017-712F, Class A
3.32% due 07/11/2039*(1)(3)

     4,520,000        4,457,186  

MTRO Commercial Mtg. Trust-TECH FRS
Series 2019 -TECH, Class A
3.39% (1 ML+0.90%)
due 12/15/2033*(1)

     2,950,000        2,951,848  

Nissan Auto Receivables Owner Trust
Series 2016-C, Class A3
1.18% due 01/15/2021

     247,542        245,937  

Shellpoint Co-Originator Trust VRS
Series 2017-2, Class A1
3.50% due 10/25/2047*(2)(3)

     1,908,998        1,867,873  

Synchrony Credit Card Master Note Trust
Series 2016-3, Class B
1.91% due 09/15/2022

     1,200,000        1,192,930  

Synchrony Credit Card Master Note Trust
Series 2016-2, Class A
2.21% due 05/15/2024

     850,000        837,558  

Toyota Auto Receivables Owner Trust
Series 2018-C, Class A4
3.13% due 02/15/2024

     125,000        126,019  

Verizon Owner Trust
Series 2018-1A, Class C
3.20% due 09/20/2022*

     300,000        299,823  

Volkswagen Auto Loan Enhanced Trust
Series 2018-2, Class A4
3.33% due 02/20/2025

     500,000        507,719  

World Financial Network Credit Card Master Trust
Series 2017-C, Class A
2.31% due 08/15/2024

     200,000        198,049  
             


Total Asset Backed Securities

                 

(cost $44,406,162)

              44,187,030  
             


 

 

14


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES — 33.7%

 

Advertising Agencies — 0.1%

 

Interpublic Group of Cos., Inc.
Senior Notes
4.20% due 04/15/2024

   $ 644,000      $ 649,487  

Interpublic Group of Cos., Inc.
Senior Notes
5.40% due 10/01/2048

     865,000        840,051  
             


                1,489,538  
             


Aerospace/Defense — 0.1%

 

General Dynamics Corp.
Company Guar. Notes
2.88% due 05/11/2020

     1,816,000        1,818,328  
             


Aerospace/Defense - Equipment — 0.5%

 

Harris Corp.
Senior Notes
4.40% due 06/15/2028

     2,611,000        2,687,692  

L3 Technologies, Inc.
Company Guar. Notes
4.40% due 06/15/2028

     970,000        996,418  

Moog, Inc.
Company Guar. Notes
5.25% due 12/01/2022*

     459,000        466,266  

Triumph Group, Inc.
Company Guar. Notes
4.88% due 04/01/2021

     720,000        709,200  

United Technologies Corp.
Senior Notes
3.95% due 08/16/2025

     3,097,000        3,158,796  
             


                8,018,372  
             


Airlines — 0.0%

 

Atlas Air, Inc.
Pass-Through Certs.
Series 1999-1, Class B
7.63% due 01/02/2020(4)(5)

     37,452        37,670  

United Airlines Pass-Through Trust
Pass-Through Certs.
Series 2014-2, Class B
4.63% due 03/03/2024

     481,461        484,735  
             


                522,405  
             


Apparel Manufacturers — 0.0%

 

William Carter Co.
Company Guar. Notes
5.63% due 03/15/2027*

     110,000        110,000  
             


Applications Software — 0.0%

 

CDK Global, Inc.
Senior Notes
5.88% due 06/15/2026

     679,000        700,219  
             


Auto - Cars/Light Trucks — 1.2%

 

BMW US Capital LLC
Company Guar. Notes
3.10% due 04/12/2021*

     2,545,000        2,549,022  

Daimler Finance North America LLC
Company Guar. Notes
2.00% due 07/06/2021*

     1,935,000        1,873,685  

Daimler Finance North America LLC
Company Guar. Notes
2.45% due 05/18/2020*

     852,000        844,030  

Daimler Finance North America LLC
Company Guar. Notes
3.75% due 11/05/2021*

     1,574,000        1,587,080  

Ford Motor Credit Co. LLC
Senior Notes
3.34% due 03/18/2021

     3,478,000        3,412,127  
Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Auto - Cars/Light Trucks (continued)

 

General Motors Financial Co., Inc.
Company Guar. Notes
3.70% due 05/09/2023

   $ 1,485,000      $ 1,464,193  

Hyundai Capital America
Senior Notes
3.95% due 02/01/2022*#

     3,811,000        3,832,732  

Nissan Motor Acceptance Corp.
Senior Notes
2.65% due 07/13/2022*

     1,655,000        1,591,792  

Toyota Motor Credit Corp.
Senior Notes
3.45% due 09/20/2023

     2,045,000        2,073,691  
             


                19,228,352  
             


Auto - Heavy Duty Trucks — 0.1%

 

Allison Transmission, Inc.
Senior Notes
5.00% due 10/01/2024*

     709,000        713,431  

JB Poindexter & Co., Inc.
Senior Notes
7.13% due 04/15/2026*

     790,000        776,175  
             


                1,489,606  
             


Banks - Commercial — 1.0%

 

BankUnited, Inc.
Senior Notes
4.88% due 11/17/2025

     6,016,000        6,142,873  

Citizens Bank NA
Senior Notes
3.75% due 02/18/2026

     1,004,000        1,003,609  

Citizens Financial Group, Inc.
Sub. Notes
4.15% due 09/28/2022*

     1,570,000        1,578,758  

KeyBank NA
Senior Notes
3.30% due 02/01/2022

     786,000        791,170  

Regions Financial Corp.
Sub. Notes
7.38% due 12/10/2037(5)

     4,032,000        5,201,915  

SunTrust Bank
Senior Notes
3.50% due 08/02/2022

     1,374,000        1,383,205  
             


                16,101,530  
             


Banks - Super Regional — 0.7%

 

Bank of America NA
Senior Notes
3.34% due 01/25/2023

     2,372,000        2,383,984  

Wells Fargo & Co.
Senior Notes
3.00% due 02/19/2025

     4,631,000        4,507,979  

Wells Fargo & Co.
Senior Notes
3.07% due 01/24/2023

     2,403,000        2,386,549  

Wells Fargo Bank NA
Senior Notes
3.55% due 08/14/2023

     2,458,000        2,494,794  
             


                11,773,306  
             


Batteries/Battery Systems — 0.1%

 

Energizer Holdings, Inc.
Company Guar. Notes
6.38% due 07/15/2026*#

     890,000        898,900  
 

 

15


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Batteries/Battery Systems (continued)

 

EnerSys
Company Guar. Notes
5.00% due 04/30/2023*

   $ 528,000      $ 525,360  
             


                1,424,260  
             


Beverages - Non-alcoholic — 0.3%

 

Keurig Dr Pepper, Inc.
Company Guar. Notes
4.06% due 05/25/2023*

     869,000        878,553  

Keurig Dr Pepper, Inc.
Company Guar. Notes
4.42% due 05/25/2025*

     2,245,000        2,286,059  

PepsiCo., Inc.
Senior Notes
2.75% due 04/30/2025

     1,617,000        1,592,361  
             


                4,756,973  
             


Brewery — 0.5%

 

Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
3.65% due 02/01/2026*

     36,000        35,584  

Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
4.70% due 02/01/2036*

     1,311,000        1,265,525  

Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
4.90% due 02/01/2046*

     1,376,000        1,320,228  

Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
4.60% due 04/15/2048

     716,000        659,401  

Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
5.55% due 01/23/2049

     3,881,000        4,077,598  
             


                7,358,336  
             


Broadcast Services/Program — 0.3%

 

Fox Corp.
Company Guar. Notes
4.03% due 01/25/2024*

     1,998,000        2,039,301  

Fox Corp.
Company Guar. Notes
5.48% due 01/25/2039*

     1,148,000        1,207,753  

Fox Corp.
Company Guar. Notes
5.58% due 01/25/2049*

     1,410,000        1,486,607  

Univision Communications, Inc.
Senior Sec. Notes
5.13% due 05/15/2023*

     1,040,000        943,800  
             


                5,677,461  
             


Building & Construction Products - Misc. — 0.2%

 

Owens Corning
Senior Notes
4.30% due 07/15/2047

     2,432,000        1,890,754  

Standard Industries, Inc.
Senior Notes
6.00% due 10/15/2025*

     975,000        1,017,656  
             


                2,908,410  
             


Building & Construction - Misc. — 0.1%

 

Frontdoor, Inc.
Senior Notes
6.75% due 08/15/2026*#

     649,000        659,546  
Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Building & Construction - Misc. (continued)

 

Weekley Homes LLC/Weekley Finance Corp.
Senior Notes
6.00% due 02/01/2023

   $ 1,000,000      $ 945,000  
             


                1,604,546  
             


Building - Heavy Construction — 0.1%

 

Great Lakes Dredge & Dock Corp.
Company Guar. Notes
8.00% due 05/15/2022

     630,000        660,555  

Tutor Perini Corp.
Company Guar. Notes
6.88% due 05/01/2025*#

     985,000        985,000  
             


                1,645,555  
             


Building - Residential/Commercial — 0.1%

 

Toll Brothers Finance Corp.
Company Guar. Notes
4.35% due 02/15/2028

     1,004,000        942,505  
             


Cable/Satellite TV — 1.0%

 

Block Communications, Inc.
Senior Notes
6.88% due 02/15/2025*

     858,000        885,885  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.00% due 02/01/2028*

     361,000        347,237  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.38% due 05/01/2025*

     420,000        429,975  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.50% due 05/01/2026*

     302,000        308,795  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.88% due 04/01/2024*

     263,000        273,849  

Charter Communications Operating LLC/Charter Communications Operating Capital
Senior Sec. Notes
5.05% due 03/30/2029

     2,029,000        2,072,416  

Charter Communications Operating LLC/Charter Communications Operating Capital
Senior Sec. Notes
5.38% due 04/01/2038

     181,000        174,493  

Charter Communications Operating LLC/Charter Communications Operating Capital
Senior Sec. Notes
5.75% due 04/01/2048

     804,000        803,828  

Charter Communications Operating LLC/Charter Communications Operating Capital
Senior Sec. Notes
6.38% due 10/23/2035

     689,000        737,644  

Comcast Corp.
Company Guar. Notes
3.60% due 03/01/2024

     2,437,000        2,473,817  

Comcast Corp.
Company Guar. Notes
3.90% due 03/01/2038

     461,000        433,327  

Comcast Corp.
Company Guar. Notes
4.60% due 10/15/2038

     1,890,000        1,950,416  

Comcast Corp.
Company Guar. Notes
4.70% due 10/15/2048

     1,477,000        1,536,688  
 

 

16


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Cable/Satellite TV (continued)

 

CSC Holdings LLC
Company Guar. Notes
5.50% due 04/15/2027*

   $ 2,520,000      $ 2,525,645  

DISH DBS Corp.
Company Guar. Notes
5.00% due 03/15/2023#

     266,000        236,740  
             


                15,190,755  
             


Casino Services — 0.1%

 

Eldorado Resorts, Inc.
Company Guar. Notes
6.00% due 09/15/2026*#

     855,000        869,963  
             


Cellular Telecom — 0.5%

 

Sprint Corp.
Company Guar. Notes
7.88% due 09/15/2023

     4,175,000        4,468,335  

Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC
Senior Sec. Notes
4.74% due 09/20/2029*

     2,980,000        2,983,725  
             


                7,452,060  
             


Chemicals - Diversified — 0.4%

 

Dow Chemical Co.
Senior Notes
5.55% due 11/30/2048*

     1,409,000        1,482,530  

DowDuPont, Inc.
Senior Notes
4.73% due 11/15/2028

     2,098,000        2,189,393  

DowDuPont, Inc.
Senior Notes
5.42% due 11/15/2048

     2,069,000        2,208,215  
             


                5,880,138  
             


Chemicals - Fibers — 0.1%

 

Rayonier AM Products, Inc.
Company Guar. Notes
5.50% due 06/01/2024*

     935,000        864,875  
             


Chemicals - Specialty — 0.1%

 

Kraton Polymers LLC/Kraton Polymers Capital Corp.
Company Guar. Notes
7.00% due 04/15/2025*

     1,005,000        1,016,306  

Lubrizol Corp.
Company Guar. Notes
6.50% due 10/01/2034

     507,000        665,891  
             


                1,682,197  
             


Coal — 0.1%

 

SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp.
Company Guar. Notes
7.50% due 06/15/2025*

     1,104,000        1,123,320  
             


Coatings/Paint — 0.0%

 

RPM International, Inc.
Senior Notes
4.25% due 01/15/2048

     134,000        110,602  
             


Commercial Services — 0.1%

 

Ecolab, Inc.
Senior Notes
2.38% due 08/10/2022

     1,444,000        1,409,409  
             


Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Commercial Services - Finance — 0.1%

 

Refinitiv US Holdings, Inc.
Company Guar. Notes
8.25% due 11/15/2026*

   $ 1,087,000      $ 1,063,562  
             


Computer Services — 0.5%

 

Harland Clarke Holdings Corp.
Senior Sec. Notes
8.38% due 08/15/2022*

     565,000        527,569  

IBM Credit LLC
Senior Notes
3.00% due 02/06/2023

     5,574,000        5,543,058  

International Business Machines Corp.
Senior Notes
2.50% due 01/27/2022

     1,104,000        1,089,268  
             


                7,159,895  
             


Computer Software — 0.0%

 

Rackspace Hosting, Inc.
Company Guar. Notes
8.63% due 11/15/2024*#

     865,000        756,875  
             


Computers — 0.3%

 

Apple, Inc.
Senior Notes
2.85% due 05/06/2021

     1,139,000        1,141,377  

Diamond 1 Finance Corp./Diamond 2 Finance Corp.
Senior Sec. Notes
6.02% due 06/15/2026*

     1,700,000        1,803,607  

Diamond 1 Finance Corp./Diamond 2 Finance Corp.
Senior Sec. Notes
8.10% due 07/15/2036*

     1,243,000        1,406,242  

Hewlett Packard Enterprise Co.
Senior Notes
6.20% due 10/15/2035

     56,000        57,653  
             


                4,408,879  
             


Computers - Integrated Systems — 0.1%

 

Diebold Nixdorf, Inc.
Company Guar. Notes
8.50% due 04/15/2024

     1,054,000        895,900  

Everi Payments, Inc.
Company Guar. Notes
7.50% due 12/15/2025*

     695,000        695,000  
             


                1,590,900  
             


Consumer Products - Misc. — 0.0%

 

Central Garden & Pet Co.
Company Guar. Notes
5.13% due 02/01/2028

     725,000        672,438  
             


Containers - Metal/Glass — 0.1%

 

Crown Cork & Seal Co., Inc.
Company Guar. Notes
7.38% due 12/15/2026

     583,000        638,385  

Owens-Brockway Glass Container, Inc.
Company Guar. Notes
5.38% due 01/15/2025*

     726,000        740,484  
             


                1,378,869  
             


Cosmetics & Toiletries — 0.1%

 

Coty, Inc.
Company Guar. Notes
6.50% due 04/15/2026*#

     1,065,000        1,026,340  
 

 

17


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Cosmetics & Toiletries (continued)

 

First Quality Finance Co., Inc.
Company Guar. Notes
5.00% due 07/01/2025*

   $ 734,000      $ 717,485  
             


                1,743,825  
             


Diagnostic Equipment — 0.0%

 

Ortho-Clinical Diagnostics, Inc.
Senior Notes
6.63% due 05/15/2022*#

     790,000        760,375  
             


Dialysis Centers — 0.0%

 

DaVita HealthCare Partners, Inc.
Company Guar. Notes
5.13% due 07/15/2024

     725,000        717,750  
             


Distribution/Wholesale — 0.0%

 

H&E Equipment Services, Inc.
Company Guar. Notes
5.63% due 09/01/2025

     705,000        697,950  
             


Diversified Banking Institutions — 2.9%

 

Bank of America Corp.
Senior Notes
3.55% due 03/05/2024

     2,286,000        2,294,950  

Bank of America Corp.
Senior Notes
3.86% due 07/23/2024

     1,949,000        1,980,869  

Bank of America Corp.
Sub. Notes
4.18% due 11/25/2027

     3,882,000        3,865,955  

Bank of America Corp.
Senior Notes
4.27% due 07/23/2029

     1,053,000        1,081,542  

Bank of America Corp.
Sub. Notes
6.11% due 01/29/2037(5)

     1,734,000        2,002,005  

Citigroup, Inc.
Senior Notes
3.20% due 10/21/2026

     3,486,000        3,337,756  

Citigroup, Inc.
Senior Notes
3.30% due 04/27/2025

     782,000        771,371  

Citigroup, Inc.
Sub. Notes
4.45% due 09/29/2027

     1,801,000        1,808,217  

Citigroup, Inc.
Senior Notes
4.65% due 07/23/2048

     2,080,000        2,169,636  

Citigroup, Inc.
Sub. Notes
5.88% due 02/22/2033(5)

     1,253,000        1,400,767  

Citigroup, Inc.
Sub. Notes
6.00% due 10/31/2033(5)

     641,000        726,811  

Goldman Sachs Group, Inc.
Senior Notes
2.91% due 06/05/2023

     1,702,000        1,670,567  

Goldman Sachs Group, Inc.
Senior Notes
3.63% due 02/20/2024#

     1,996,000        1,997,803  

Goldman Sachs Group, Inc.
Senior Notes
4.02% due 10/31/2038

     1,315,000        1,214,309  

Goldman Sachs Group, Inc.
Sub. Notes
4.25% due 10/21/2025

     1,940,000        1,948,956  
Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Diversified Banking Institutions (continued)

                 

Goldman Sachs Group, Inc.
Sub. Notes
6.75% due 10/01/2037(5)

   $ 2,373,000      $ 2,821,156  

JPMorgan Chase & Co.
Senior Notes
2.55% due 03/01/2021

     2,748,000        2,722,915  

JPMorgan Chase & Co.
Senior Notes
3.88% due 07/24/2038

     640,000        606,834  

Morgan Stanley
Senior Notes
4.43% due 01/23/2030

     1,656,000        1,711,401  

Morgan Stanley
Sub. Notes
5.00% due 11/24/2025

     7,947,000        8,358,158  
             


                44,491,978  
             


Diversified Manufacturing Operations — 0.5%

 

3M Co.
Senior Notes
3.25% due 02/14/2024

     1,269,000        1,288,055  

General Electric Capital Corp.
Sub. Notes
5.30% due 02/11/2021

     4,240,000        4,361,452  

Illinois Tool Works, Inc.
Senior Notes
3.50% due 03/01/2024

     1,408,000        1,435,237  
             


                7,084,744  
             


E-Commerce/Products — 0.1%

 

Amazon.com, Inc.
Senior Notes
4.80% due 12/05/2034

     934,000        1,041,429  
             


Electric - Distribution — 0.3%

 

Metropolitan Edison Co.
Senior Notes
4.30% due 01/15/2029*

     1,667,000        1,686,517  

Oglethorpe Power Corp.
1st Mtg. Notes
5.05% due 10/01/2048*

     3,187,000        3,306,721  
             


                4,993,238  
             


Electric - Generation — 0.0%

 

Basin Electric Power Cooperative
1st Mtg. Notes
4.75% due 04/26/2047*

     164,000        167,370  
             


Electric - Integrated — 2.0%

 

Dominion Resources, Inc.
Senior Notes
5.25% due 08/01/2033

     1,540,000        1,677,513  

DTE Electric Co.
General Refunding Mtg.
3.95% due 03/01/2049

     2,939,000        2,870,134  

Duke Energy Progress LLC
1st Mtg. Notes
2.80% due 05/15/2022

     938,000        935,008  

Entergy Texas, Inc.
1st Mtg. Notes
4.50% due 03/30/2039

     4,157,000        4,222,534  

Exelon Generation Co. LLC
Senior Notes
2.95% due 01/15/2020

     723,000        722,117  

FirstEnergy Corp.
Senior Notes
3.90% due 07/15/2027

     1,832,000        1,814,764  
 

 

18


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Electric - Integrated (continued)

 

FirstEnergy Corp.
Senior Notes
7.38% due 11/15/2031

   $ 4,183,000      $ 5,394,063  

Georgia Power Co.
Senior Notes
2.00% due 09/08/2020

     864,000        852,416  

Jersey Central Power & Light Co.
Senior Notes
4.30% due 01/15/2026*

     853,000        870,939  

Massachusetts Electric Co.
Notes
4.00% due 08/15/2046*

     1,671,000        1,560,958  

MidAmerican Energy Co.
1st Mtg. Notes
4.25% due 07/15/2049

     2,634,000        2,690,618  

Nevada Power Co.
General Refunding Mtg.
2.75% due 04/15/2020

     1,205,000        1,205,815  

Public Service Co. of Colorado
1st Mtg. Bonds
3.70% due 06/15/2028

     1,696,000        1,725,931  

Public Service Co. of Colorado
1st Mtg. Bonds
4.10% due 06/15/2048

     1,165,000        1,172,722  

South Carolina Electric & Gas Co.
1st Mtg. Notes
4.35% due 02/01/2042

     771,000        793,778  

South Carolina Electric & Gas Co.
1st Mtg. Bonds
5.10% due 06/01/2065

     2,621,000        2,853,856  
             


                31,363,166  
             


Electronic Components - Semiconductors — 0.3%

 

Intel Corp.
Senior Notes
2.45% due 07/29/2020

     1,972,000        1,966,158  

Micron Technology, Inc.
Senior Notes
4.64% due 02/06/2024

     597,000        601,097  

Micron Technology, Inc.
Senior Notes
5.33% due 02/06/2029

     1,738,000        1,741,111  
             


                4,308,366  
             


Electronic Measurement Instruments — 0.2%

 

Trimble, Inc.
Senior Notes
4.75% due 12/01/2024

     172,000        173,126  

Trimble, Inc.
Senior Notes
4.90% due 06/15/2028

     3,273,000        3,251,953  
             


                3,425,079  
             


Electronic Parts Distribution — 0.1%

 

Arrow Electronics, Inc.
Senior Notes
4.00% due 04/01/2025

     1,063,000        1,029,392  

Ingram Micro, Inc.
Senior Notes
5.45% due 12/15/2024

     1,200,000        1,177,143  
             


                2,206,535  
             


Energy - Alternate Sources — 0.1%

 

Pattern Energy Group, Inc.
Company Guar. Notes
5.88% due 02/01/2024*

     997,000        1,015,325  
             


Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Enterprise Software/Service — 0.2%

 

Donnelley Financial Solutions, Inc.
Company Guar. Notes
8.25% due 10/15/2024

   $ 1,025,000      $ 1,021,156  

Oracle Corp.
Senior Notes
2.95% due 11/15/2024

     2,373,000        2,345,352  
             


                3,366,508  
             


Finance - Consumer Loans — 0.3%

 

Enova International, Inc.
Company Guar. Notes
8.50% due 09/01/2024*

     1,080,000        1,034,100  

Enova International, Inc.
Company Guar. Notes
8.50% due 09/15/2025*

     621,000        588,398  

SLM Corp.
Senior Notes
5.63% due 08/01/2033

     1,133,000        875,242  

Springleaf Finance Corp.
Company Guar. Notes
6.88% due 03/15/2025

     925,000        946,969  

Springleaf Finance Corp.
Company Guar. Notes
7.13% due 03/15/2026

     560,000        567,000  

Synchrony Financial
Senior Notes
4.25% due 08/15/2024

     1,415,000        1,387,727  
             


                5,399,436  
             


Finance - Credit Card — 0.4%

 

Alliance Data Systems Corp.
Company Guar. Notes
5.88% due 11/01/2021*

     800,000        814,000  

American Express Co.
Senior Notes
2.50% due 08/01/2022

     599,000        586,680  

American Express Co.
Senior Notes
3.40% due 02/22/2024

     3,090,000        3,098,269  

American Express Co.
Senior Notes
4.20% due 11/06/2025

     988,000        1,026,683  
             


                5,525,632  
             


Finance - Investment Banker/Broker — 0.1%

 

Jefferies Group LLC/Jefferies Group Capital Finance, Inc.
Senior Notes
4.15% due 01/23/2030

     975,000        851,885  

Lehman Brothers Holdings, Inc.
Escrow Notes
6.75% due 12/28/2017†(4)(5)

     179,000        18  

Lehman Brothers Holdings, Inc.
Escrow Notes
7.50% due 05/11/2038†(4)(5)

     230,000        23  

LPL Holdings, Inc.
Company Guar. Notes
5.75% due 09/15/2025*

     1,085,000        1,097,206  
             


                1,949,132  
             


Finance - Mortgage Loan/Banker — 0.1%

 

Quicken Loans, Inc.
Company Guar. Notes
5.75% due 05/01/2025*

     1,160,000        1,144,920  
             


 

 

19


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Finance - Other Services — 0.3%

 

National Rural Utilities Cooperative Finance Corp.
Collateral Trust Bonds
2.30% due 11/01/2020

   $ 2,496,000      $ 2,472,644  

National Rural Utilities Cooperative Finance Corp.
Senior Notes
2.30% due 09/15/2022

     1,089,000        1,057,773  

National Rural Utilities Cooperative Finance Corp.
Collateral Trust Notes
2.40% due 04/25/2022

     794,000        779,113  
             


                4,309,530  
             


Food - Meat Products — 0.1%

 

Smithfield Foods, Inc.
Senior Notes
2.65% due 10/03/2021*

     565,000        536,138  

Tyson Foods, Inc.
Senior Notes
5.10% due 09/28/2048

     1,746,000        1,692,108  
             


                2,228,246  
             


Food - Misc./Diversified — 0.7%

 

Conagra Brands, Inc.
Senior Notes
5.40% due 11/01/2048#

     1,815,000        1,702,975  

Conagra Brands, Inc.
Senior Notes
7.00% due 10/01/2028

     1,529,000        1,726,691  

General Mills, Inc.
Senior Notes
4.70% due 04/17/2048#

     2,188,000        2,040,115  

Kraft Heinz Foods Co.
Sec. Notes
4.88% due 02/15/2025*

     1,487,000        1,511,255  

Mondelez International, Inc.
Senior Notes
3.63% due 02/13/2026

     1,995,000        1,968,920  

Nestle Holdings, Inc.
Company Guar. Notes
3.50% due 09/24/2025*

     1,771,000        1,801,123  

Post Holdings, Inc.
Company Guar. Notes
5.50% due 03/01/2025*

     603,000        604,508  
             


                11,355,587  
             


Food - Retail — 0.1%

 

Albertsons Cos. LLC/Safeway, Inc./New Albertsons LP/Albertson’s LLC
Company Guar. Notes
5.75% due 03/15/2025

     1,102,000        1,046,900  

Kroger Co.
Senior Notes
5.40% due 01/15/2049

     1,211,000        1,193,474  
             


                2,240,374  
             


Gambling (Non-Hotel) — 0.0%

 

Scientific Games International, Inc.
Senior Sec. Notes
5.00% due 10/15/2025*

     675,000        653,906  

Waterford Gaming LLC/Waterford Gaming Financial Corp.
Escrow Notes
8.63% due 09/15/2014*(4)(5)†

     5,223        97  
             


                654,003  
             


Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Gas - Distribution — 0.1%

 

Brooklyn Union Gas Co.
Senior Notes
4.49% due 03/04/2049*

   $ 1,096,000      $ 1,093,590  

NiSource, Inc.
Senior Notes
5.65% due 02/01/2045

     1,083,000        1,205,416  
             


                2,299,006  
             


Hotels/Motels — 0.1%

 

Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc.
Company Guar. Notes
6.13% due 12/01/2024

     413,000        426,423  

Wyndham Worldwide Corp.
Senior Sec. Notes
5.40% due 04/01/2024

     316,000        317,580  

Wyndham Worldwide Corp.
Senior Sec. Notes
5.75% due 04/01/2027#

     749,000        743,382  
             


                1,487,385  
             


Industrial Automated/Robotic — 0.0%

 

Rockwell Automation, Inc.
Senior Notes
4.20% due 03/01/2049

     760,000        763,300  
             


Insurance Brokers — 0.1%

 

Marsh & McLennan Cos., Inc.
Senior Notes
3.50% due 12/29/2020

     955,000        963,917  

Willis North America, Inc.
Company Guar. Notes
5.05% due 09/15/2048

     1,004,000        991,698  
             


                1,955,615  
             


Insurance - Life/Health — 0.1%

 

AXA Equitable Holdings, Inc.
Senior Notes
5.00% due 04/20/2048

     550,000        514,114  

Brighthouse Financial, Inc.
Senior Notes
4.70% due 06/22/2047

     1,389,000        1,099,088  
             


                1,613,202  
             


Insurance - Multi-line — 0.1%

 

Assurant, Inc.
Senior Notes
6.75% due 02/15/2034

     909,000        1,006,910  
             


Insurance - Mutual — 0.2%

 

MassMutual Global Funding II
Senior Sec. Notes
2.75% due 06/22/2024*

     908,000        886,310  

New York Life Global Funding
Sec. Notes
1.95% due 09/28/2020*

     2,825,000        2,786,086  
             


                3,672,396  
             


Insurance - Property/Casualty — 0.1%

 

ACE INA Holdings, Inc.
Company Guar. Notes
2.88% due 11/03/2022

     1,453,000        1,456,614  

AmWINS Group, Inc.
Company Guar. Notes
7.75% due 07/01/2026*

     645,000        661,125  
             


                2,117,739  
             


 

 

20


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Internet Connectivity Services — 0.1%

 

Cogent Communications Group, Inc.
Senior Sec. Notes
5.38% due 03/01/2022*

   $ 800,000      $ 814,000  
             


Internet Content - Entertainment — 0.1%

 

Netflix, Inc.
Senior Notes
5.88% due 02/15/2025#

     939,000        995,340  
             


Investment Companies — 0.1%

 

FS Energy & Power Fund
Senior Sec. Notes
7.50% due 08/15/2023*

     847,000        857,003  
             


Machinery - Construction & Mining — 0.3%

 

Caterpillar Financial Services Corp.
Senior Notes
2.55% due 11/29/2022

     1,094,000        1,076,505  

Caterpillar Financial Services Corp.
Senior Notes
3.15% due 09/07/2021

     798,000        802,976  

Caterpillar Financial Services Corp.
Senior Notes
3.45% due 05/15/2023

     1,495,000        1,515,732  

Terex Corp.
Company Guar. Notes
5.63% due 02/01/2025*

     757,000        736,183  
             


                4,131,396  
             


Machinery - Electrical — 0.1%

 

ABB Finance USA, Inc.
Company Guar. Notes
3.38% due 04/03/2023

     1,988,000        2,000,266  
             


Machinery - Farming — 0.4%

 

CNH Industrial Capital LLC
Company Guar. Notes
4.20% due 01/15/2024

     2,743,000        2,741,285  

John Deere Capital Corp.
Senior Notes
2.35% due 01/08/2021

     1,190,000        1,180,677  

John Deere Capital Corp.
Senior Notes
3.45% due 01/10/2024

     1,954,000        1,992,072  

John Deere Capital Corp.
Senior Notes
3.65% due 10/12/2023

     866,000        893,203  
             


                6,807,237  
             


Machinery - General Industrial — 0.2%

 

Roper Technologies, Inc.
Senior Notes
4.20% due 09/15/2028

     2,813,000        2,830,216  
             


Machinery - Thermal Process — 0.0%

 

Cleaver-Brooks, Inc.
Senior Sec. Notes
7.88% due 03/01/2023*

     104,000        101,660  
             


Medical Instruments — 0.2%

 

Boston Scientific Corp.
Senior Notes
4.70% due 03/01/2049

     1,074,000        1,072,258  

Medtronic, Inc.
Company Guar. Notes
2.50% due 03/15/2020

     1,893,000        1,888,927  
             


                2,961,185  
             


Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Medical Labs & Testing Services — 0.6%

 

Laboratory Corp. of America Holdings
Senior Notes
3.25% due 09/01/2024

   $ 1,882,000      $ 1,829,128  

Laboratory Corp. of America Holdings
Senior Notes
4.70% due 02/01/2045

     1,506,000        1,413,267  

MEDNAX, Inc.
Company Guar. Notes
5.25% due 12/01/2023*

     1,138,000        1,150,803  

Roche Holdings, Inc.
Company Guar. Notes
1.75% due 01/28/2022*

     2,027,000        1,962,700  

Roche Holdings, Inc.
Company Guar. Notes
2.25% due 09/30/2019*

     1,795,000        1,790,701  

Roche Holdings, Inc.
Company Guar. Notes
2.88% due 09/29/2021*

     1,240,000        1,239,395  
             


                9,385,994  
             


Medical Products — 0.1%

 

Baxter International, Inc.
Senior Notes
3.50% due 08/15/2046

     1,391,000        1,149,616  
             


Medical - Biomedical/Gene — 0.2%

 

Celgene Corp.
Senior Notes
3.63% due 05/15/2024

     1,707,000        1,704,699  

Celgene Corp.
Senior Notes
4.63% due 05/15/2044

     995,000        928,800  
             


                2,633,499  
             


Medical - Drugs — 0.3%

 

AbbVie, Inc.
Senior Notes
4.45% due 05/14/2046

     1,062,000        932,782  

AbbVie, Inc.
Senior Notes
4.88% due 11/14/2048

     1,193,000        1,120,560  

GlaxoSmithKline Capital, Inc.
Company Guar. Notes
3.38% due 05/15/2023

     1,284,000        1,300,069  

Pfizer, Inc.
Senior Notes
3.00% due 09/15/2021#

     770,000        774,920  
             


                4,128,331  
             


Medical - Generic Drugs — 0.1%

 

Mylan, Inc.
Company Guar. Notes
4.55% due 04/15/2028

     1,521,000        1,433,007  
             


Medical - HMO — 0.5%

 

Centene Corp.
Senior Notes
4.75% due 01/15/2025

     375,000        377,813  

UnitedHealth Group, Inc.
Senior Bonds
2.38% due 10/15/2022

     5,570,000        5,471,111  

UnitedHealth Group, Inc.
Senior Notes
3.75% due 07/15/2025

     924,000        948,547  

UnitedHealth Group, Inc.
Senior Notes
4.45% due 12/15/2048

     1,288,000        1,343,388  
             


                8,140,859  
             


 

 

21


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Medical - Hospitals — 0.2%

 

HCA, Inc.
Senior Sec. Notes
5.00% due 03/15/2024

   $ 1,172,000      $ 1,224,361  

HCA, Inc.
Senior Sec. Notes
5.25% due 06/15/2026

     513,000        541,049  

HCA, Inc.
Company Guar. Notes
5.38% due 02/01/2025

     1,325,000        1,374,277  

HCA, Inc.
Senior Sec. Notes
6.50% due 02/15/2020

     550,000        566,456  
             


                3,706,143  
             


Medical - Wholesale Drug Distribution — 0.2%

 

Allergan Sales LLC
Company Guar. Notes
4.88% due 02/15/2021*

     499,000        511,072  

Cardinal Health, Inc.
Senior Notes
4.60% due 03/15/2043

     2,986,000        2,622,365  
             


                3,133,437  
             


Metal Processors & Fabrication — 0.1%

 

Novelis Corp.
Company Guar. Notes
5.88% due 09/30/2026*

     220,000        214,500  

Novelis Corp.
Company Guar. Notes
6.25% due 08/15/2024*

     739,000        744,542  
             


                959,042  
             


Metal - Copper — 0.1%

 

Freeport-McMoRan Copper & Gold, Inc.
Company Guar. Notes
3.88% due 03/15/2023

     915,000        901,714  
             


Metal - Iron — 0.1%

 

Cleveland-Cliffs, Inc.
Company Guar. Notes
5.75% due 03/01/2025

     952,000        930,580  
             


Multimedia — 0.1%

 

E.W. Scripps Co.
Company Guar. Notes
5.13% due 05/15/2025*

     937,000        901,863  

Time Warner, Inc.
Company Guar. Notes
4.85% due 07/15/2045

     1,108,000        1,044,979  
             


                1,946,842  
             


Networking Products — 0.3%

 

Cisco Systems, Inc.
Senior Notes
2.20% due 02/28/2021

     4,874,000        4,825,542  
             


Office Supplies & Forms — 0.2%

 

Avery Dennison Corp.
Senior Notes
4.88% due 12/06/2028

     2,353,000        2,434,936  
             


Oil Companies - Exploration & Production — 0.9%

 

Anadarko Petroleum Corp.
Senior Notes
6.45% due 09/15/2036

     1,674,000        1,883,777  
Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Oil Companies - Exploration & Production (continued)

 

Apache Corp.
Senior Notes
4.38% due 10/15/2028#

   $ 531,000      $ 522,005  

Callon Petroleum Co.
Company Guar. Notes
6.38% due 07/01/2026

     835,000        835,000  

Chaparral Energy, Inc.
Senior Notes
8.75% due 07/15/2023*

     965,000        607,950  

Continental Resources, Inc.
Company Guar. Notes
4.50% due 04/15/2023

     1,753,000        1,786,637  

Extraction Oil & Gas, Inc.
Company Guar. Notes
5.63% due 02/01/2026*

     915,000        759,450  

Hilcorp Energy I LP/Hilcorp Finance Co.
Senior Notes
5.00% due 12/01/2024*

     1,011,000        971,824  

Lonestar Resources America, Inc.
Company Guar. Notes
11.25% due 01/01/2023*

     865,000        843,375  

Marathon Oil Corp.
Senior Notes
6.60% due 10/01/2037

     898,000        1,035,902  

Noble Energy, Inc.
Senior Notes
4.95% due 08/15/2047

     2,608,000        2,440,208  

QEP Resources, Inc.
Senior Notes
5.63% due 03/01/2026#

     636,000        596,250  

Sanchez Energy Corp.
Company Guar. Notes
6.13% due 01/15/2023

     383,000        57,929  

Southwestern Energy Co.
Company Guar. Notes
7.50% due 04/01/2026

     650,000        674,375  

WildHorse Resource Development Corp.
Company Guar. Notes
6.88% due 02/01/2025(5)

     889,000        901,224  
             


                13,915,906  
             


Oil Companies - Integrated — 0.5%

 

BP Capital Markets America, Inc.
Company Guar. Notes
3.25% due 05/06/2022

     1,041,000        1,048,845  

BP Capital Markets America, Inc.
Company Guar. Notes
4.23% due 11/06/2028

     1,760,000        1,851,424  

Chevron Corp.
Senior Notes
2.36% due 12/05/2022

     1,266,000        1,245,686  

Chevron Corp.
Senior Notes
2.90% due 03/03/2024

     3,674,000        3,658,517  
             


                7,804,472  
             


Oil Field Machinery & Equipment — 0.1%

 

Forum Energy Technologies, Inc.
Company Guar. Notes
6.25% due 10/01/2021

     690,000        605,475  

Hi-Crush Partners LP
Senior Notes
9.50% due 08/01/2026*#

     1,465,000        1,124,387  
             


                1,729,862  
             


 

 

22


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Oil - Field Services — 0.3%

 

Apergy Corp.
Company Guar. Notes
6.38% due 05/01/2026

   $ 698,000      $ 697,127  

Calfrac Holdings LP
Senior Notes
8.50% due 06/15/2026*

     950,000        703,000  

Nine Energy Service, Inc.
Senior Notes
8.75% due 11/01/2023*

     385,000        385,000  

Pioneer Energy Services Corp.
Company Guar. Notes
6.13% due 03/15/2022

     1,170,000        719,550  

Schlumberger Holdings Corp.
Senior Notes
3.75% due 05/01/2024*

     1,581,000        1,588,855  

USA Compression Partners LP/USA Compression Finance Corp.
Company Guar. Notes
6.88% due 04/01/2026

     527,000        536,223  

USA Compression Partners LP/USA Compression Finance Corp.
Senior Notes
6.88% due 09/01/2027*

     283,000        288,660  
             


                4,918,415  
             


Paper & Related Products — 0.4%

 

Domtar Corp.
Company Guar. Notes
6.75% due 02/15/2044

     2,536,000        2,508,758  

Georgia-Pacific LLC
Senior Notes
3.73% due 07/15/2023*

     2,700,000        2,729,033  

Georgia-Pacific LLC
Company Guar. Notes
5.40% due 11/01/2020*

     679,000        703,606  
             


                5,941,397  
             


Petrochemicals — 0.1%

 

Chevron Phillips Chemical Co. LLC/Chevron Phillips Chemical Co. LP
Senior Notes
3.30% due 05/01/2023*

     1,145,000        1,140,421  
             


Pharmacy Services — 0.5%

 

Cigna Corp.
Company Guar. Notes
4.80% due 08/15/2038*

     1,457,000        1,447,711  

Cigna Corp.
Company Guar. Notes
4.90% due 12/15/2048*

     1,435,000        1,419,477  

CVS Health Corp.
Senior Notes
4.78% due 03/25/2038

     3,873,000        3,758,478  

CVS Pass-Through Trust
Pass-Through Certs.
4.70% due 01/10/2036*

     490,181        493,073  

CVS Pass-Through Trust
Pass-Through Certs.
5.77% due 01/10/2033*

     247,527        264,254  

CVS Pass-Through Trust
Pass-Through Certs.
5.93% due 01/10/2034*

     484,696        524,774  
             


                7,907,767  
             


Pipelines — 1.7%

 

Antero Midstream Partners LP/Antero Midstream Finance Corp.
Senior Notes
5.75% due 03/01/2027*

     389,000        391,917  
Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Pipelines (continued)

 

Cheniere Corpus Christi Holdings LLC
Senior Sec. Notes
5.88% due 03/31/2025

   $ 960,000      $ 1,022,410  

Cheniere Corpus Christi Holdings LLC
Senior Sec. Notes
7.00% due 06/30/2024

     231,000        255,833  

Enable Midstream Partners LP
Senior Notes
4.95% due 05/15/2028

     1,116,000        1,108,512  

Energy Transfer Equity LP
Senior Sec. Notes
4.25% due 03/15/2023

     1,530,000        1,549,431  

Energy Transfer Operating LP
Company Guar. Notes
4.50% due 04/15/2024

     1,256,000        1,291,107  

Energy Transfer Operating LP
Company Guar. Notes
5.25% due 04/15/2029

     1,377,000        1,436,292  

Energy Transfer Operating LP
Company Guar. Notes
6.25% due 04/15/2049

     1,049,000        1,125,730  

EnLink Midstream Partners LP
Senior Notes
4.85% due 07/15/2026

     858,000        839,767  

EnLink Midstream Partners LP
Senior Notes
5.05% due 04/01/2045

     213,000        179,985  

Enterprise Products Operating LLC
Company Guar. Notes
4.80% due 02/01/2049

     1,528,000        1,553,176  

Genesis Energy LP/Genesis Energy Finance Corp.
Company Guar. Notes
5.63% due 06/15/2024

     400,000        372,004  

Genesis Energy LP/Genesis Energy Finance Corp.
Company Guar. Notes
6.00% due 05/15/2023

     500,000        501,245  

Holly Energy Partners LP/Holly Energy Finance Corp. Company Guar. Notes
6.00% due 08/01/2024*

     677,000        693,925  

Kinder Morgan Energy Partners LP
Company Guar. Notes
4.30% due 05/01/2024

     1,476,000        1,518,787  

Kinder Morgan Energy Partners LP
Company Guar. Notes
6.95% due 01/15/2038

     897,000        1,072,555  

Magellan Midstream Partners LP
Senior Notes
4.85% due 02/01/2049

     1,185,000        1,203,504  

MPLX LP
Senior Notes
4.00% due 03/15/2028

     1,143,000        1,103,832  

MPLX LP
Senior Notes
4.13% due 03/01/2027

     767,000        752,052  

MPLX LP
Senior Notes
4.80% due 02/15/2029

     83,000        85,013  

MPLX LP
Senior Notes
5.50% due 02/15/2049

     2,520,000        2,576,081  

NGPL PipeCo LLC
Senior Notes
4.38% due 08/15/2022*

     1,267,000        1,279,670  
 

 

23


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Pipelines (continued)

 

SemGroup Corp./Rose Rock Finance Corp.
Company Guar. Notes
5.63% due 07/15/2022

   $ 937,000      $ 912,404  

SemGroup Corp./Rose Rock Finance Corp.
Company Guar. Notes
5.63% due 11/15/2023

     217,000        202,895  

Summit Midstream Holdings LLC/Summit Midstream Finance Corp.
Company Guar. Notes
5.50% due 08/15/2022

     765,000        757,350  

Western Gas Partners LP
Senior Notes
4.65% due 07/01/2026

     1,300,000        1,291,003  

Williams Cos., Inc.
Senior Notes
5.75% due 06/24/2044

     1,201,000        1,265,108  
             


                26,341,588  
             


Poultry — 0.1%

 

Pilgrim’s Pride Corp.
Company Guar. Notes
5.88% due 09/30/2027*

     1,000,000        982,500  
             


Publishing - Books — 0.0%

 

McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance
Senior Notes
7.88% due 05/15/2024*#

     950,000        764,750  
             


Radio — 0.0%

 

Sirius XM Radio, Inc.
Company Guar. Notes
5.38% due 07/15/2026*

     700,000        701,750  
             


Real Estate Investment Trusts — 1.0%

 

American Tower Corp.
Senior Notes
4.00% due 06/01/2025

     1,396,000        1,409,625  

Columbia Property Trust Operating Partnership LP
Company Guar. Notes
4.15% due 04/01/2025

     1,898,000        1,873,161  

Crown Castle International Corp.
Senior Notes
5.20% due 02/15/2049

     1,486,000        1,481,768  

CTR Partnership LP/CareTrust Capital Corp.
Company Guar. Notes
5.25% due 06/01/2025

     626,000        629,130  

ERP Operating LP
Senior Notes
4.15% due 12/01/2028

     1,103,000        1,145,852  

ESH Hospitality, Inc.
Company Guar. Notes
5.25% due 05/01/2025*

     1,205,000        1,198,975  

GEO Group, Inc.
Company Guar. Notes
5.13% due 04/01/2023

     650,000        617,500  

GEO Group, Inc.
Company Guar. Notes
5.88% due 10/15/2024

     445,000        421,637  

GLP Capital LP/GLP Financing II, Inc.
Company Guar. Notes
5.38% due 04/15/2026

     600,000        618,216  

Iron Mountain, Inc.
Company Guar. Notes
4.88% due 09/15/2027*

     665,000        629,256  
Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Real Estate Investment Trusts (continued)

 

iStar, Inc.
Senior Notes
5.25% due 09/15/2022

   $ 639,000      $ 626,220  

iStar, Inc.
Senior Notes
6.00% due 04/01/2022

     289,000        288,639  

MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc.
Company Guar. Notes
5.75% due 02/01/2027*

     305,000        312,244  

MPT Operating Partnership LP/MPT Finance Corp.
Company Guar. Notes
5.00% due 10/15/2027

     787,000        781,097  

Sabra Health Care LP
Company Guar. Notes
5.13% due 08/15/2026

     800,000        760,188  

Simon Property Group LP
Senior Notes
4.13% due 12/01/2021

     1,825,000        1,872,627  

Starwood Property Trust, Inc.
Senior Notes
4.75% due 03/15/2025

     1,220,000        1,186,816  
             


                15,852,951  
             


Real Estate Management/Services — 0.2%

 

Kennedy-Wilson, Inc.
Company Guar. Notes
5.88% due 04/01/2024

     1,200,000        1,173,000  

Newmark Group, Inc.
Senior Notes
6.13% due 11/15/2023*

     674,000        677,623  

Realogy Group LLC/Realogy Co-Issuer Corp.
Company Guar. Notes
4.88% due 06/01/2023*#

     847,000        766,535  
             


                2,617,158  
             


Real Estate Operations & Development — 0.1%

 

Greystar Real Estate Partners LLC
Senior Sec. Notes
5.75% due 12/01/2025*

     890,000        894,254  
             


Rental Auto/Equipment — 0.1%

 

Ahern Rentals, Inc.
Sec. Notes
7.38% due 05/15/2023*

     820,000        756,450  

Jurassic Holdings III, Inc.
Sec. Notes
6.88% due 02/15/2021*#

     718,000        669,887  
             


                1,426,337  
             


Retail - Appliances — 0.1%

 

Conn’s, Inc.
Company Guar. Notes
7.25% due 07/15/2022

     1,092,000        1,026,480  
             


Retail - Automobile — 0.1%

 

AutoNation, Inc.
Company Guar. Notes
3.50% due 11/15/2024

     1,496,000        1,402,623  

Lithia Motors, Inc.
Company Guar. Notes
5.25% due 08/01/2025*

     675,000        668,250  
             


                2,070,873  
             


 

 

24


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Retail - Building Products — 0.2%

 

Home Depot, Inc.
Senior Notes
4.50% due 12/06/2048

   $ 2,379,000      $ 2,516,343  
             


Retail - Discount — 0.2%

 

Wal-Mart Stores, Inc.
Senior Notes
2.55% due 04/11/2023

     3,061,000        3,034,165  
             


Retail - Drug Store — 0.1%

 

Walgreens Boots Alliance, Inc.
Senior Notes
4.80% due 11/18/2044

     858,000        801,255  
             


Retail - Mail Order — 0.2%

 

QVC, Inc.
Senior Sec. Notes
4.85% due 04/01/2024

     3,528,000        3,551,711  
             


Retail - Office Supplies — 0.1%

 

Staples, Inc.
Company Guar. Notes
8.50% due 09/15/2025*

     1,257,000        1,231,860  
             


Retail - Pawn Shops — 0.0%

 

FirstCash, Inc.
Company Guar. Notes
5.38% due 06/01/2024*

     487,000        493,234  
             


Retail - Restaurants — 0.5%

 

Brinker International, Inc.
Company Guar. Notes
5.00% due 10/01/2024*

     653,000        628,512  

Darden Restaurants, Inc.
Senior Notes
4.55% due 02/15/2048

     2,013,000        1,840,035  

Golden Nugget, Inc.
Company Guar. Notes
8.75% due 10/01/2025*

     678,000        698,340  

McDonald’s Corp.
Senior Notes
4.45% due 03/01/2047

     1,561,000        1,519,261  

McDonald’s Corp.
Senior Notes
4.45% due 09/01/2048

     2,892,000        2,813,464  
             


                7,499,612  
             


Satellite Telecom — 0.0%

 

Hughes Satellite Systems Corp.
Company Guar. Notes
6.63% due 08/01/2026

     781,000        768,309  
             


Savings & Loans/Thrifts — 0.4%

 

First Niagara Financial Group, Inc.
Sub. Notes
7.25% due 12/15/2021

     2,331,000        2,556,252  

New York Community Bancorp, Inc.
Sub. Notes
5.90% due 11/06/2028

     3,000,000        3,016,299  
             


                5,572,551  
             


Security Services — 0.1%

 

ADT Corp.
Senior Sec. Notes
4.13% due 06/15/2023

     964,000        945,925  
             


Semiconductor Equipment — 0.1%

 

Entegris, Inc.
Company Guar. Notes
4.63% due 02/10/2026*

     440,000        432,300  
Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Semiconductor Equipment (continued)

 

Lam Research Corp.
Senior Notes
4.00% due 03/15/2029

   $ 1,395,000      $ 1,395,369  
             


                1,827,669  
             


Steel - Producers — 0.1%

 

Commercial Metals Co.
Senior Notes
5.75% due 04/15/2026

     720,000        707,400  

United States Steel Corp.
Senior Notes
6.88% due 08/15/2025

     850,000        837,250  
             


                1,544,650  
             


Telecommunication Equipment — 0.0%

 

Anixter, Inc.
Company Guar. Notes
6.00% due 12/01/2025*

     465,000        481,275  
             


Telephone - Integrated — 1.0%

 

AT&T, Inc.
Senior Notes
4.35% due 03/01/2029

     1,397,000        1,391,393  

AT&T, Inc.
Senior Notes
4.50% due 05/15/2035

     3,912,000        3,684,974  

AT&T, Inc.
Senior Notes
4.90% due 08/15/2037

     3,434,000        3,311,618  

CenturyLink, Inc.
Senior Notes
7.50% due 04/01/2024#

     1,700,000        1,798,281  

Citizens Communications Co.
Senior Notes
9.00% due 08/15/2031#

     891,000        490,050  

Frontier Communications Corp.
Senior Notes
7.63% due 04/15/2024

     1,357,000        766,705  

Verizon Communications, Inc.
Senior Notes
4.40% due 11/01/2034

     516,000        516,954  

Verizon Communications, Inc.
Senior Notes
5.25% due 03/16/2037

     3,440,000        3,744,752  
             


                15,704,727  
             


Television — 0.2%

 

Belo Corp.
Company Guar. Notes
7.75% due 06/01/2027

     799,000        868,912  

CBS Corp.
Company Guar. Notes
3.70% due 08/15/2024

     1,678,000        1,667,973  

Gray Television, Inc.
Company Guar. Notes
5.13% due 10/15/2024*

     552,000        549,930  

Gray Television, Inc.
Company Guar. Notes
5.88% due 07/15/2026*

     118,000        119,180  

Gray Television, Inc.
Senior Notes
7.00% due 05/15/2027*

     475,000        502,313  
             


                3,708,308  
             


 

 

25


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Tools - Hand Held — 0.2%

 

Stanley Black & Decker, Inc.
Senior Notes
3.40% due 03/01/2026

   $ 1,993,000      $ 1,986,746  

Stanley Black & Decker, Inc.
Senior Notes
4.85% due 11/15/2048

     1,187,000        1,238,387  
             


                3,225,133  
             


Transport - Equipment & Leasing — 0.2%

 

GATX Corp.
Senior Notes
4.35% due 02/15/2024

     2,349,000        2,384,557  

GATX Corp.
Senior Notes
4.70% due 04/01/2029

     756,000        765,963  
             


                3,150,520  
             


Transport - Marine — 0.1%

 

Kirby Corp.
Senior Notes
4.20% due 03/01/2028

     1,223,000        1,197,098  
             


Transport - Rail — 0.1%

 

Kansas City Southern
Company Guar. Notes
4.70% due 05/01/2048

     753,000        752,378  

Norfolk Southern Corp.
Senior Notes
5.10% due 08/01/2118

     1,435,000        1,436,371  
             


                2,188,749  
             


Transport - Services — 0.1%

 

FedEx Corp.
Company Guar. Notes
4.95% due 10/17/2048#

     1,191,000        1,181,691  
             


Transport - Truck — 0.1%

 

JB Hunt Transport Services, Inc.
Company Guar. Notes
3.88% due 03/01/2026

     1,992,000        1,987,471  
             


Trucking/Leasing — 0.2%

 

Penske Truck Leasing Co. LP/PTL Finance Corp.
Senior Notes
3.65% due 07/29/2021*

     1,385,000        1,393,004  

Penske Truck Leasing Co. LP/PTL Finance Corp.
Senior Notes
3.95% due 03/10/2025*

     1,919,000        1,890,286  
             


                3,283,290  
             


Total U.S. Corporate Bonds & Notes

                 

(cost $525,602,135)

              525,430,762  
             


FOREIGN CORPORATE BONDS & NOTES — 7.6%

 

Agricultural Chemicals — 0.2%

 

Consolidated Energy Finance SA
Senior Notes
6.88% due 06/15/2025*

     960,000        936,000  

Nutrien, Ltd.
Senior Notes
3.63% due 03/15/2024

     1,284,000        1,267,146  

OCI NV
Senior Sec. Notes
6.63% due 04/15/2023*

     583,000        603,405  
             


                2,806,551  
             


Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Auto/Truck Parts & Equipment - Original — 0.3%

 

Aptiv PLC
Senior Notes
5.40% due 03/15/2049

   $ 822,000      $ 818,367  

Delphi Jersey Holdings PLC
Company Guar. Notes
5.00% due 10/01/2025*

     985,000        876,463  

Toyota Industries Corp.
Senior Notes
3.24% due 03/16/2023*

     1,473,000        1,470,260  
             


                3,165,090  
             


Banks - Commercial — 1.2%

 

AIB Group PLC
Senior Notes
4.75% due 10/12/2023*

     2,683,000        2,693,435  

Australia & New Zealand Banking Group, Ltd.
Senior Notes
1.60% due 07/15/2019

     728,000        725,043  

Bank of Montreal
Senior Notes
3.30% due 02/05/2024

     2,786,000        2,778,341  

Canadian Imperial Bank of Commerce
Senior Notes
2.10% due 10/05/2020

     2,705,000        2,670,866  

Danske Bank A/S
Senior Notes
3.88% due 09/12/2023*

     1,607,000        1,560,514  

Danske Bank A/S
Senior Notes
5.38% due 01/12/2024*

     2,695,000        2,777,194  

ING Groep NV
Senior Notes
4.63% due 01/06/2026*

     763,000        787,008  

Intesa Sanpaolo SpA
Sub. Notes
5.71% due 01/15/2026*

     1,862,000        1,742,763  

National Australia Bank, Ltd.
Senior Notes
3.63% due 06/20/2023

     2,263,000        2,290,063  
             


                18,025,227  
             


Banks - Special Purpose — 0.2%

 

KFW
Government Guar. Notes
2.63% due 02/28/2024

     3,210,000        3,205,865  
             


Building Societies — 0.1%

 

Nationwide Building Society
Sub. Notes
4.13% due 10/18/2032*

     1,018,000        929,769  
             


Building - Residential/Commercial — 0.0%

 

Mattamy Group Corp.
Senior Notes
6.50% due 10/01/2025*

     616,000        591,938  
             


Cable/Satellite TV — 0.3%

 

Altice Financing SA
Senior Sec. Notes
7.50% due 05/15/2026*

     1,390,000        1,344,825  

Altice France SA
Senior Sec. Notes
8.13% due 02/01/2027*

     215,000        216,075  

Altice Luxembourg SA
Company Guar. Notes
7.63% due 02/15/2025*#

     1,485,000        1,318,866  
 

 

26


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

FOREIGN CORPORATE BONDS & NOTES (continued)

 

Cable/Satellite TV (continued)

 

Numericable-SFR SA
Senior Sec. Notes
7.38% due 05/01/2026*

   $ 880,000      $ 863,500  

UPCB Finance IV, Ltd.
Senior Sec. Notes
5.38% due 01/15/2025*

     701,000        716,772  
             


                4,460,038  
             


Cellular Telecom — 0.1%

 

C&W Senior Financing Designated Activity Co.
Senior Notes
6.88% due 09/15/2027*

     817,000        800,660  

SK Telecom Co., Ltd.
Senior Notes
3.75% due 04/16/2023*

     590,000        595,640  
             


                1,396,300  
             


Chemicals - Diversified — 0.2%

 

Braskem Netherlands Finance BV
Company Guar. Notes
4.50% due 01/10/2028*

     971,000        954,007  

NOVA Chemicals Corp.
Senior Notes
5.00% due 05/01/2025*

     1,085,000        1,036,175  

Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc.
Company Guar. Notes
5.38% due 09/01/2025*

     715,000        672,100  
             


                2,662,282  
             


Computers - Memory Devices — 0.0%

 

Seagate HDD Cayman
Company Guar. Notes
4.75% due 01/01/2025

     760,000        731,189  
             


Containers - Paper/Plastic — 0.1%

 

Intertape Polymer Group, Inc.
Senior Notes
7.00% due 10/15/2026*

     823,000        829,172  
             


Diversified Banking Institutions — 1.7%

 

BNP Paribas SA
Senior Notes
3.80% due 01/10/2024*

     1,776,000        1,773,610  

BNP Paribas SA
Senior Notes
4.71% due 01/10/2025*

     2,259,000        2,326,586  

Deutsche Bank AG
Senior Notes
4.25% due 02/04/2021

     1,115,000        1,110,421  

Mitsubishi UFJ Financial Group, Inc.
Senior Notes
3.41% due 03/07/2024

     5,310,000        5,309,548  

Mizuho Financial Group, Inc.
Senior Notes
3.55% due 03/05/2023

     5,790,000        5,815,666  

Royal Bank of Scotland Group PLC
Senior Notes
3.88% due 09/12/2023

     454,000        450,195  

Royal Bank of Scotland Group PLC
Senior Notes
4.52% due 06/25/2024

     2,008,000        2,018,266  

UBS Group Funding Switzerland AG
Company Guar. Notes
3.49% due 05/23/2023*

     2,616,000        2,609,042  
Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Diversified Banking Institutions (continued)

 

UBS Group Funding Switzerland AG
Company Guar. Notes
4.13% due 09/24/2025*

   $ 269,000      $ 273,683  

UniCredit SpA
Sub. Notes
5.86% due 06/19/2032*

     3,339,000        2,983,570  

UniCredit SpA
Senior Notes
6.57% due 01/14/2022*

     1,048,000        1,073,024  
             


                25,743,611  
             


Diversified Manufacturing Operations — 0.2%

 

Siemens Financieringsmaatschappij NV
Company Guar. Notes
2.20% due 03/16/2020*

     2,424,000        2,406,224  
             


Diversified Minerals — 0.1%

 

Anglo American Capital PLC
Company Guar. Notes
4.00% due 09/11/2027*

     773,000        728,409  

FMG Resources August 2006 Pty, Ltd.
Company Guar. Notes
5.13% due 03/15/2023*

     875,000        872,812  
             


                1,601,221  
             


Electric - Generation — 0.1%

 

Electricite de France SA
Senior Notes
4.88% due 09/21/2038*

     1,040,000        1,024,203  

Electricite de France SA
Senior Notes
5.00% due 09/21/2048*#

     1,233,000        1,212,914  
             


                2,237,117  
             


Electric - Integrated — 0.3%

 

EDP Finance BV
Senior Notes
3.63% due 07/15/2024*

     1,831,000        1,787,239  

Enel Finance International NV
Company Guar. Notes
3.63% due 05/25/2027*

     3,226,000        2,975,371  
             


                4,762,610  
             


Food - Meat Products — 0.1%

 

JBS USA LUX SA/JBS USA Finance, Inc.
Company Guar. Notes
5.75% due 06/15/2025*

     207,000        209,587  

JBS USA LUX SA/JBS USA Finance, Inc.
Company Guar. Notes
5.88% due 07/15/2024*#

     893,000        918,004  
             


                1,127,591  
             


Gambling (Non-Hotel) — 0.0%

 

LHMC Finco SARL
Senior Sec. Notes
7.88% due 12/20/2023*

     670,000        685,075  
             


Insurance - Life/Health — 0.1%

 

Athene Holding, Ltd.
Senior Notes
4.13% due 01/12/2028

     1,574,000        1,470,052  
             


Machinery - Farming — 0.2%

 

CNH Industrial NV
Senior Notes
3.85% due 11/15/2027

     1,549,000        1,436,419  
 

 

27


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

FOREIGN CORPORATE BONDS & NOTES (continued)

 

Machinery - Farming (continued)

 

CNH Industrial NV
Senior Notes
4.50% due 08/15/2023

   $ 1,052,000      $ 1,072,409  
             


                2,508,828  
             


Medical - Drugs — 0.4%

 

Bausch Health Cos., Inc.
Senior Sec. Notes
5.75% due 08/15/2027*

     208,000        209,820  

Bausch Health Cos., Inc.
Company Guar. Notes
5.88% due 05/15/2023*

     1,510,000        1,502,450  

Shire Acquisitions Investments Ireland DAC
Company Guar. Notes
2.88% due 09/23/2023

     1,101,000        1,062,649  

Takeda Pharmaceutical Co., Ltd.
Senior Notes
4.40% due 11/26/2023*

     3,280,000        3,389,444  
             


                6,164,363  
             


Medical - Generic Drugs — 0.1%

 

Actavis Funding SCS
Company Guar. Notes
3.80% due 03/15/2025

     1,170,000        1,155,710  
             


Metal - Copper — 0.0%

 

First Quantum Minerals, Ltd.
Company Guar. Notes
6.50% due 03/01/2024*

     308,000        291,830  

First Quantum Minerals, Ltd.
Company Guar. Notes
7.25% due 04/01/2023*

     320,000        314,400  
             


                606,230  
             


Oil & Gas Drilling — 0.1%

 

Noble Holding International, Ltd.
Company Guar. Notes
7.88% due 02/01/2026*

     702,000        656,370  

Shelf Drilling Holdings, Ltd.
Company Guar. Notes
8.25% due 02/15/2025*

     615,000        587,325  
             


                1,243,695  
             


Oil Companies - Exploration & Production — 0.2%

 

Anadarko Finance Co.
Company Guar. Notes
7.50% due 05/01/2031

     642,000        781,045  

MEG Energy Corp.
Sec. Notes
6.50% due 01/15/2025*

     1,039,000        1,020,818  

Woodside Finance, Ltd.
Company Guar. Notes
4.50% due 03/04/2029*

     1,535,000        1,527,347  
             


                3,329,210  
             


Oil Companies - Integrated — 0.3%

 

Cenovus Energy, Inc.
Senior Notes
4.25% due 04/15/2027#

     1,629,000        1,552,114  

Cenovus Energy, Inc.
Senior Notes
5.20% due 09/15/2043

     1,746,000        1,596,982  

Petro-Canada
Senior Notes
5.95% due 05/15/2035

     828,000        931,257  
             


                4,080,353  
             


Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Oil - Field Services — 0.0%

 

KCA Deutag UK Finance PLC
Senior Sec. Notes
9.88% due 04/01/2022*#

   $ 679,000      $ 541,503  
             


Paper & Related Products — 0.0%

 

Cascades, Inc.
Company Guar. Notes
5.50% due 07/15/2022*

     425,000        426,063  

Cascades, Inc.
Company Guar. Notes
5.75% due 07/15/2023*

     179,000        175,420  
             


                601,483  
             


Satellite Telecom — 0.2%

 

Inmarsat Finance PLC
Company Guar. Notes
6.50% due 10/01/2024*#

     835,000        830,825  

Intelsat Jackson Holdings SA
Company Guar. Notes
5.50% due 08/01/2023#

     1,872,000        1,708,200  

Intelsat Jackson Holdings SA
Company Guar. Notes
8.50% due 10/15/2024*

     357,000        360,463  

Telesat Canada/Telesat LLC
Company Guar. Notes
8.88% due 11/15/2024*

     769,000        826,675  
             


                3,726,163  
             


Security Services — 0.0%

 

Garda World Security Corp.
Senior Notes
8.75% due 05/15/2025*

     675,000        646,313  
             


Semiconductor Components - Integrated Circuits — 0.1%

 

NXP BV/NXP Funding LLC
Company Guar. Notes
4.88% due 03/01/2024*

     1,592,000        1,636,544  
             


SupraNational Banks — 0.3%

 

European Investment Bank
Senior Notes
1.63% due 08/14/2020#

     2,399,000        2,364,927  

International Bank for Reconstruction & Development
Senior Notes
3.13% due 11/20/2025

     1,680,000        1,728,085  
             


                4,093,012  
             


Telephone - Integrated — 0.5%

 

Telecom Italia Capital SA
Company Guar. Notes
7.72% due 06/04/2038

     1,280,000        1,312,000  

Telefonica Emisiones SAU
Company Guar. Notes
4.67% due 03/06/2038

     2,052,000        1,878,612  

Telefonica Emisiones SAU
Company Guar. Notes
5.21% due 03/08/2047

     859,000        822,742  

Telefonica Emisiones SAU
Company Guar. Notes
5.52% due 03/01/2049

     3,070,000        3,065,402  
             


                7,078,756  
             


Transport - Equipment & Leasing — 0.1%

 

Avolon Holdings Funding, Ltd.
Company Guar. Notes
5.13% due 10/01/2023*

     850,000        858,500  
 

 

28


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

FOREIGN CORPORATE BONDS & NOTES (continued)

 

Transport - Equipment & Leasing (continued)

 

Avolon Holdings Funding, Ltd.
Company Guar. Notes
5.25% due 05/15/2024*

   $ 205,000      $ 210,125  
             


                1,068,625  
             


Transport - Rail — 0.1%

 

Canadian National Railway Co.
Senior Notes
2.85% due 12/15/2021

     1,087,000        1,082,431  

Canadian Pacific Railway Co.
Senior Notes
6.13% due 09/15/2115

     657,000        763,925  
             


                1,846,356  
             


Total Foreign Corporate Bonds & Notes

                 

(cost $120,457,113)

              119,164,066  
             


FOREIGN GOVERNMENT OBLIGATIONS — 0.3%

 

Sovereign — 0.1%

 

United Mexican States
Senior Notes
4.50% due 04/22/2029

     1,408,000        1,417,166  

United Mexican States
Senior Bonds
4.75% due 03/08/2044

     1,104,000        1,046,603  
             


                2,463,769  
             


Sovereign Agency — 0.2%

 

Kommunalbanken AS
Senior Notes
2.75% due 02/05/2024*

     2,561,000        2,563,026  
             


Total Foreign Government Obligations

                 

(cost $5,022,774)

              5,026,795  
             


U.S. GOVERNMENT AGENCIES — 37.3%

 

Federal Home Loan Mtg. Corp. — 9.1%

 

2.50% due 01/01/2028

     625,758        617,659  

2.50% due 04/01/2028

     1,295,836        1,279,068  

2.50% due 03/01/2031

     786,151        771,787  

2.50% due 10/01/2032

     4,233,191        4,155,842  

3.00% due 08/01/2027

     267,347        268,133  

3.00% due 10/01/2042

     1,350,152        1,327,754  

3.00% due 11/01/2042

     1,113,484        1,095,012  

3.00% due 02/01/2043

     1,398,026        1,370,465  

3.00% due 04/01/2043

     1,569,049        1,543,017  

3.00% due 05/01/2043

     566,843        557,440  

3.00% due 08/01/2043

     5,743,798        5,648,507  

3.00% due 07/01/2045

     10,162,452        9,968,675  

3.00% due 10/01/2045

     6,058,783        5,940,434  

3.00% due 08/01/2046

     10,176,732        9,970,013  

3.50% due 01/01/2032

     4,526,609        4,608,989  

3.50% due 03/01/2042

     3,926,590        3,963,160  

3.50% due 04/01/2042

     1,683,043        1,698,715  

3.50% due 08/01/2042

     1,312,992        1,325,217  

3.50% due 09/01/2043

     1,245,592        1,256,965  

3.50% due 03/01/2045

     1,202,569        1,209,490  

3.50% due 07/01/2045

     7,604,196        7,644,432  

3.50% due 08/01/2045

     2,205,498        2,217,167  

3.50% due 11/01/2045

     4,215,212        4,237,517  

3.50% due 01/01/2046

     2,545,947        2,559,156  

3.50% due 03/01/2046

     6,406,711        6,439,950  

3.50% due 11/01/2047

     13,118,780        13,140,297  

3.50% due 03/01/2048

     9,843,553        9,880,397  

4.00% due 03/01/2023

     35,041        36,013  

4.00% due 09/01/2040

     1,294,394        1,332,003  
Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Federal Home Loan Mtg. Corp. (continued)

 

4.00% due 07/01/2044

   $ 92,960      $ 95,203  

4.00% due 10/01/2045

     3,363,620        3,444,746  

4.00% due 01/01/2046

     709,068        729,457  

4.50% due 12/01/2039

     495,978        522,520  

4.50% due 07/01/2044

     1,261,369        1,314,343  

4.50% due 05/01/2048

     6,783,722        7,033,370  

5.00% due 10/01/2033

     975        1,033  

5.00% due 07/01/2040

     545,101        584,344  

5.00% due 11/01/2043

     2,809,258        3,005,084  

5.50% due 11/01/2032

     6,993        7,555  

5.50% due 07/01/2034

     26,168        28,423  

5.50% due 02/01/2035

     35,429        37,585  

5.50% due 07/01/2035

     981        1,067  

5.50% due 01/01/2036

     158,872        172,682  

5.50% due 05/01/2037

     29,426        31,974  

6.00% due 07/01/2035

     79,443        85,624  

6.00% due 03/01/2040

     141,696        155,683  

6.50% due 02/01/2036

     11,944        13,445  

6.50% due 09/01/2036

     313        344  

6.50% due 05/01/2037

     33,994        38,452  

Federal Home Loan Mtg. Corp. FRS
4.33% (6 ML+1.49%)
due 02/01/2037

     134,804        138,690  

4.38% (12 ML+1.88%)
due 11/01/2037

     1,262,970        1,328,697  

Federal Home Loan Mtg. Corp. REMIC

                 

Series 4740, Class BA
3.00% due 09/15/2045(2)

     3,747,167        3,733,299  

Series 4800, Class KG
3.50% due 11/15/2045(2)

     4,000,000        3,987,138  

Series 3820, Class DA
4.00% due 11/15/2035(2)

     1,762,807        1,773,064  

Federal Home Loan Mtg. Corp. REMIC FRS
Series 3572, Class JS
4.31% (6.80%-1 ML)
due 09/15/2039(2)(6)(7)

     855,898        96,688  

Federal Home Loan Mtg. Corp. Structured Agency Credit Risk FRS

                 

Series 2017-HQA1, Class M1
3.69% (1 ML+1.20%)
due 08/25/2029(2)

     1,884,930        1,890,571  

Series 2015-DNA1, Class M2
4.34% (1 ML+1.85%)
due 10/25/2027(2)

     761,787        770,178  

Series 2014-DN1, Class M2
4.69% (1 ML+2.20%)
due 02/25/2024(2)

     1,101,966        1,124,231  

Series 2014-HQ2, Class M2
4.69% (1 ML+2.20%)
due 09/25/2024(2)

     2,603,993        2,654,843  

Series 2015-HQ1, Class M2
4.69% (1 ML+2.20%)
due 03/25/2025(2)

     27        27  

Series 2015-HQA1, Class M2
5.14% (1 ML+2.65%)
due 03/25/2028(2)

     342,141        346,885  

Series 2016-HQA1, Class M2
5.24% (1 ML+2.75%)
due 09/25/2028(2)

     787,587        799,120  

Series 2015-HQA2, Class M2
5.29% (1 ML+2.80%)
due 05/25/2028(2)

     511,698        522,346  
             


                142,531,985  
             


 

 

29


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. GOVERNMENT AGENCIES (continued)

 

Federal National Mtg. Assoc. — 23.7%

 

2.50% due 02/01/2028

   $ 1,328,312      $ 1,310,467  

2.50% due 04/01/2028

     330,608        326,168  

2.50% due 08/01/2031

     13,939,609        13,691,790  

2.50% due 01/01/2032

     2,421,915        2,376,960  

3.00% due 04/01/2027

     897,582        899,904  

3.00% due 10/01/2027

     150,161        150,549  

3.00% due 01/01/2028

     1,364,325        1,367,877  

3.00% due 03/01/2030

     2,550,008        2,548,004  

3.00% due 10/01/2030

     2,534,058        2,530,952  

3.00% due 10/01/2032

     7,709,553        7,703,508  

3.00% due 03/01/2042

     2,721,780        2,674,583  

3.00% due 12/01/2042

     2,535,484        2,491,516  

3.00% due 02/01/2043

     5,778,615        5,678,395  

3.00% due 05/01/2043

     3,018,555        2,966,205  

3.00% due 05/01/2046

     3,602,285        3,524,173  

3.00% due 08/01/2046

     7,212,397        7,062,703  

3.00% due 09/01/2046

     1,644,669        1,609,005  

3.00% due 04/01/2047

     10,144,132        9,923,611  

3.00% due 09/01/2048

     7,755,590        7,587,263  

3.50% due 08/01/2026

     957,312        973,141  

3.50% due 09/01/2026

     876,408        891,074  

3.50% due 08/01/2027

     109,095        110,899  

3.50% due 10/01/2028

     2,048,039        2,088,891  

3.50% due 03/01/2033

     1,763,500        1,792,658  

3.50% due 08/01/2033

     5,118,957        5,203,594  

3.50% due 12/01/2041

     407,399        410,933  

3.50% due 03/01/2042

     557,724        562,563  

3.50% due 08/01/2042

     3,796,043        3,828,980  

3.50% due 09/01/2042

     533,284        537,912  

3.50% due 02/01/2043

     2,655,310        2,683,683  

3.50% due 07/01/2045

     1,657,332        1,665,047  

3.50% due 08/01/2045

     2,224,357        2,234,713  

3.50% due 09/01/2045

     485,024        487,282  

3.50% due 10/01/2045

     3,044,420        3,058,593  

3.50% due 11/01/2045

     6,925,520        6,952,407  

3.50% due 12/01/2045

     12,068,055        12,124,241  

3.50% due 02/01/2046

     2,039,875        2,049,371  

3.50% due 03/01/2046

     9,598,094        9,627,030  

3.50% due 07/01/2046

     6,172,568        6,201,302  

3.50% due 01/01/2047

     5,568,511        5,586,399  

3.50% due 12/01/2047

     15,540,211        15,566,553  

3.50% due 04/01/2048

     28,433,644        28,474,535  

3.50% due March 15 TBA

     3,170,000        3,220,708  

3.50% due March 30 TBA

     6,100,000        6,102,859  

4.00% due 11/01/2025

     69,792        71,847  

4.00% due 03/01/2039

     6,100,000        6,263,877  

4.00% due 09/01/2040

     106,960        110,017  

4.00% due 10/01/2040

     216,276        222,471  

4.00% due 12/01/2040

     1,803,175        1,854,618  

4.00% due 10/01/2041

     1,147,006        1,179,831  

4.00% due 11/01/2041

     1,181,312        1,215,551  

4.00% due 01/01/2043

     2,075,037        2,139,543  

4.00% due 10/01/2043

     2,807,005        2,886,021  

4.00% due 10/01/2044

     3,631,815        3,721,624  

4.00% due 02/01/2045

     3,796,307        3,908,861  

4.00% due 02/01/2046

     2,641,576        2,703,860  

4.00% due 06/01/2046

     737,394        754,636  

4.00% due 01/01/2047

     4,393,730        4,494,773  

4.00% due 05/01/2047

     4,471,090        4,573,372  

4.00% due 07/01/2047

     11,740,302        12,007,980  

4.00% due 08/01/2047

     6,597,726        6,747,645  

4.00% due 06/01/2048

     12,982,784        13,294,772  

4.00% due 09/01/2048

     5,874,002        5,993,250  
Security Description    Principal
Amount
         
Value
(Note 2)
 

                   

Federal National Mtg. Assoc. (continued)

 

4.00% due 01/01/2049

   $ 5,482,999      $ 5,593,053  

4.00% due 03/01/2049

     5,500,000        5,610,396  

4.50% due 10/01/2024

     310,258        318,773  

4.50% due 03/01/2025

     470,205        483,225  

4.50% due 02/01/2040

     1,048,267        1,109,925  

4.50% due 05/01/2040

     303,700        320,498  

4.50% due 11/01/2040

     309,682        325,416  

4.50% due 12/01/2040

     288,401        303,054  

4.50% due 05/01/2041

     521,622        542,396  

4.50% due 03/01/2042

     2,978,115        3,120,274  

4.50% due 08/01/2045

     7,836,261        8,286,490  

4.50% due 11/01/2047

     4,862,093        5,036,739  

4.50% due 06/01/2048

     13,463,293        13,945,129  

4.50% due 10/01/2048

     5,823,578        6,030,050  

4.50% due 11/01/2048

     6,861,780        7,107,017  

4.50% due 12/01/2048

     2,656,775        2,750,898  

5.00% due 03/01/2020

     738        753  

5.00% due 06/01/2022

     31,775        32,482  

5.00% due 10/01/2024

     169,642        173,015  

5.00% due 09/01/2033

     531,442        567,717  

5.00% due 04/01/2040

     285,557        299,556  

5.00% due 05/01/2040

     599,014        641,376  

5.00% due 06/01/2040

     2,546,594        2,726,676  

5.00% due 07/01/2040

     651,216        694,457  

5.00% due 02/01/2045

     1,540,437        1,649,454  

5.50% due 12/01/2029

     133,987        142,096  

5.50% due 12/01/2033

     26,555        28,893  

5.50% due 07/01/2037

     30,512        32,850  

5.50% due 08/01/2037

     1,249,987        1,359,858  

5.50% due 06/01/2038

     150,387        162,811  

5.50% due 09/01/2039

     501,816        539,101  

6.00% due 08/01/2034

     22,968        25,298  

6.00% due 11/01/2035

     24,940        26,815  

6.00% due 06/01/2036

     52,819        58,088  

6.00% due 12/01/2036

     91,254        100,519  

6.00% due 07/01/2038

     442,057        486,947  

6.00% due 09/01/2038

     242,509        266,930  

6.00% due 11/01/2038

     142,349        156,796  

Federal National Mtg. Assoc. FRS
4.12% (6 ML+1.54%)
due 09/01/2035

     1,033,679        1,068,630  

4.20% (12 ML+1.66%)
due 07/01/2039

     777,071        809,263  

4.27% (12 ML+1.57%)
due 05/01/2037 .

     227,234        236,545  

4.29% (1 Yr USTYCR+2.26%)
due 11/01/2036

     405,144        426,308  

4.52% (1 Yr USTYCR+2.22%)
due 10/01/2035

     1,087,963        1,142,660  

4.55% (12 ML+1.91%)
due 08/01/2035

     708,917        745,582  

4.57% (12 ML+1.82%)
due 10/01/2040

     244,681        255,774  

4.63% (12 ML+1.76%)
due 05/01/2040

     1,068,996        1,118,604  

4.67% (12 ML+1.83%)
due 10/01/2040

     609,809        636,536  

Federal National Mtg. Assoc. REMIC
Series 2017-94, Class DA
3.00% due 06/25/2045(2)

     5,627,449        5,588,946  

Series 2017-100, Class NP
3.00% due 12/25/2047(2)

     4,715,574        4,603,721  

Series 2018-27, Class EA
3.00% due 05/25/2048(2)

     4,133,687        4,041,238  
 

 

30


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
         
Value
(Note 2)
 

U.S. GOVERNMENT AGENCIES (continued)

 

Federal National Mtg. Assoc. (continued)

 

Series 2018-35, Class CD
3.00% due 05/25/2048(2)

   $ 4,837,168      $ 4,702,563  

Fannie Mae Connecticut Avenue Securities FRS
Series 2014-C01, Class M1
4.09% (1 ML+1.60%)
due 01/25/2024(2)

     128,965        129,254  
             


                369,564,995  
             


Government National Mtg. Assoc. — 4.5%

 

3.00% due 02/20/2045

     5,832,697        5,804,403  

3.00% due 05/20/2045

     1,440,223        1,427,301  

3.00% due 07/20/2045

     363,253        359,917  

3.00% due 11/20/2045

     3,088,610        3,059,292  

3.00% due 12/20/2045

     2,471,391        2,447,424  

3.00% due 05/20/2046

     7,600,175        7,522,913  

3.00% due 09/20/2047

     4,531,917        4,477,472  

3.50% due 03/20/2045

     1,237,291        1,250,573  

3.50% due 07/20/2045

     609,984        616,538  

3.50% due 03/20/2047

     4,037,586        4,078,169  

4.00% due 03/20/2044

     766,542        792,924  

4.00% due 07/20/2045

     2,157,636        2,226,174  

4.00% due 10/20/2045

     7,686,430        7,920,567  

4.00% due 11/20/2045

     4,505,595        4,660,445  

4.00% due 05/20/2048

     14,338,583        14,730,223  

4.50% due 05/15/2039

     547,806        576,168  

4.50% due 04/20/2047

     5,143,132        5,351,800  

5.00% due 05/15/2034

     171,885        184,119  

5.00% due 01/15/2040

     520,659        554,564  

5.50% due 12/15/2039

     691,435        752,201  

6.00% due 10/15/2039

     455,866        489,174  

Government National Mtg. Assoc. REMIC VRS
Series 2013-118, Class B
2.50% due 10/16/2043(1)(3)

     1,700,000        1,588,454  
             


                70,870,815  
             


Total U.S. Government Agencies

                 

(cost $589,314,724)

              582,967,795  
             


U.S. GOVERNMENT TREASURIES — 13.5%

 

United States Treasury Notes — 10.3%

 

0.13% due 04/15/2019 TIPS(8)

     297,027        297,166  

0.13% due 04/15/2020 TIPS(8)

     289,694        287,453  

1.00% due 06/30/2019

     32,500,000        32,340,039  

1.63% due 12/31/2019#

     584,000        579,574  

1.63% due 08/31/2022

     5,000,000        4,853,516  

1.88% due 01/31/2022

     2,587,000        2,541,829  

2.00% due 11/15/2021

     238,000        235,006  

2.00% due 07/31/2022

     492,000        483,947  

2.00% due 11/15/2026

     7,000,000        6,686,367  

2.13% due 12/31/2021

     473,000        468,307  

2.25% due 12/31/2024

     4,800,000        4,716,375  

2.25% due 08/15/2027

     4,202,000        4,066,748  

2.25% due 11/15/2027

     11,770,000        11,371,383  

2.38% due 02/29/2024

     25,000,000        24,842,773  

2.50% due 01/31/2024#

     4,140,000        4,137,413  

2.50% due 02/28/2026

     10,000,000        9,927,344  

2.63% due 06/30/2023

     2,100,000        2,109,352  

2.63% due 12/31/2023

     1,000,000        1,004,570  

2.63% due 12/31/2025

     3,000,000        3,003,398  

2.63% due 02/15/2029

     10,000,000        9,923,828  

2.75% due 06/30/2025

     773,000        779,945  

2.75% due 02/15/2028

     1,250,000        1,255,371  

2.88% due 10/31/2023

     5,000,000        5,077,149  

2.88% due 04/30/2025

     5,800,000        5,894,250  

2.88% due 07/31/2025

     2,104,000        2,138,354  
Security Description    Shares/
Principal
Amount
         
Value
(Note 2)
 

   

United States Treasury Notes (continued)

 

2.88% due 11/30/2025

   $ 10,000,000      $ 10,162,891  

2.88% due 08/15/2028

     3,000,000        3,040,664  

3.00% due 10/31/2025

     3,300,000        3,378,504  

3.13% due 11/15/2028

     5,974,000        6,181,690  

3.38% due 11/15/2019

     262,000        263,464  
             


                162,048,670  
             


United States Treasury Bonds — 3.2%

 

2.50% due 02/15/2045

     1,189,000        1,064,155  

2.50% due 05/15/2046

     1,426,000        1,270,477  

2.75% due 08/15/2047#

     1,300,000        1,216,211  

3.00% due 05/15/2045

     595,000        586,493  

3.00% due 11/15/2045

     3,015,000        2,971,070  

3.00% due 05/15/2047

     13,750,000        13,533,545  

3.00% due 08/15/2048

     3,643,000        3,579,817  

3.13% due 11/15/2041

     815,000        826,111  

3.13% due 02/15/2042

     1,908,000        1,932,074  

3.13% due 08/15/2044

     310,000        312,301  

3.38% due 11/15/2048

     15,000,000        15,855,469  

3.63% due 08/15/2043

     476,000        521,090  

3.75% due 08/15/2041

     37,000        41,320  

3.88% due 08/15/2040

     140,000        159,348  

4.25% due 11/15/2040

     713,000        854,040  

4.38% due 05/15/2040

     2,990,000        3,640,909  

4.38% due 05/15/2041

     452,000        551,193  

4.63% due 02/15/2040

     68,000        85,510  

5.25% due 11/15/2028

     375,000        455,376  
             


                49,456,509  
             


Total U.S. Government Treasuries

                 

(cost $212,573,103)

              211,505,179  
             


COMMON STOCKS — 0.1%

 

Television — 0.1%

 

ION Media Networks, Inc.†(4)(5)(9)
(cost $1)

     79        65,087  
             


PREFERRED SECURITIES — 0.0%

 

Electric-Distribution — 0.0%

 

Entergy Louisiana LLC
4.70%

     22,875        555,176  
             


Sovereign Agency — 0.0%

 

Federal Home Loan Mtg. Corp.
Series Z
8.38%†#

     6,900        65,274  
             


Total Preferred Securities

                 

(cost $678,289)

              620,450  
             


PREFERRED SECURITIES/CAPITAL SECURITIES — 2.0%

 

Banks-Commercial — 0.2%

 

Cooperatieve Rabobank UA
11.00% due 06/30/2019*(10)

     2,748,000        2,809,830  
             


Banks-Money Center — 0.1%

 

BBVA Bancomer SA
5.13% due 01/18/2033*

     1,607,000        1,438,249  
             


Banks-Super Regional — 0.1%

 

Huntington Bancshares, Inc.
Series E
5.70% due 04/15/2023(10)

     997,000        959,612  

Wells Fargo Capital X
5.95% due 12/01/2086(5)

     437,000        470,868  
             


                1,430,480  
             


 

 

31


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount
     Value
(Note 2)
 

PREFERRED SECURITIES/CAPITAL SECURITIES (continued)

 

Diversified Banking Institutions — 0.9%

 

Bank of Nova Scotia
4.65% due 10/12/2022(10)

   $ 2,845,000      $ 2,599,619  

HSBC Holdings PLC
6.00% due 05/22/2027(10)

     1,763,000        1,716,721  

HSBC Holdings PLC
6.25% due 03/23/2023(10)

     1,925,000        1,920,187  

JPMorgan Chase & Co.
Series CC
4.63% due 11/01/2022(10)

     2,565,000        2,377,883  

JPMorgan Chase & Co.
Series U
6.13% due 04/30/2024#(10)

     1,855,000        1,929,200  

Royal Bank of Scotland Group PLC
8.00% due 08/10/2025(10)

     425,000        451,563  

Societe Generale SA
7.88% due 12/18/2023*#(10)

     993,000        1,027,755  

UBS Group Funding Switzerland AG
7.00% due 01/31/2024*(10)

     1,691,000        1,702,837  
             


                13,725,765  
             


Electric - Integrated — 0.1%

 

Dominion Resources, Inc.
5.75% due 10/01/2054

     795,000        795,199  
             


Finance - Investment Banker/Broker — 0.0%

 

Lehman Brothers Holdings Capital Trust VII
Escrow Security
0.00%†(4)(5)

     148,000        15  
             


Finance - Other Services — 0.1%

 

National Rural Utilities Cooperative Finance Corp.
4.75% due 04/30/2043

     862,000        834,106  
             


Food - Dairy Products — 0.0%

 

Land O’Lakes Capital Trust I
7.45% due 03/15/2028*

     603,000        643,702  
             


Insurance - Life/Health — 0.2%

 

Prudential Financial, Inc.
5.63% due 06/15/2043

     950,000        985,625  

Prudential Financial, Inc.
5.70% due 09/15/2048

     2,021,000        1,979,327  
             


                2,964,952  
             


Insurance - Multi-line — 0.1%

 

Assurant, Inc.
7.00% due 03/27/2048

     2,050,000        2,009,000  
             


Pipelines — 0.2%

 

Energy Transfer Partners LP
6.25% due 02/15/2023(10)

     1,086,000        990,975  

EnLink Midstream Partners LP
6.00% due 12/15/2022(10)

     926,000        752,375  

Enterprise Products Operating LLC
5.25% due 08/16/2077

     763,000        699,665  

TransCanada Trust
5.30% due 03/15/2077

     809,000        752,370  

TransCanada Trust
5.63% due 05/20/2075

     517,000        498,905  
             


                3,694,290  
             


Total Preferred Securities/Capital Securities

                 

(cost $31,139,259)

              30,345,588  
             


Total Long-Term Investment Securities

                 

(cost $1,529,193,560)

              1,519,312,752  
             


Security Description    Shares     Value
(Note 2)
 

                  

SHORT-TERM INVESTMENT SECURITIES — 7.7%

                

Registered Investment Companies — 7.7%

                

State Street Institutional U.S. Government Money Market Fund, Premier Class
2.35%(11)

     101,593,129     $ 101,593,129  

State Street Navigator Securities Lending Government Money Market Portfolio
2.43%(11)(13)

     18,909,203       18,909,203  
            


Total Short-Term Investment Securities

                

(cost $120,502,332)

             120,502,332  
            


TOTAL INVESTMENTS

                

(cost $1,649,695,892)(12)

     104.9     1,639,815,084  

Liabilities in excess of other assets

     (4.9     (76,720,177
    


 


NET ASSETS

     100.0   $ 1,563,094,907  
    


 



*

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, 2019, the aggregate value of these securities was $220,386,905 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)

Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.

(4)

Securities classified as Level 3 (see Note 2).

(5)

Illiquid security. At February 28, 2019, the aggregate value of these securities was $13,627,656 representing 0.9% of net assets.

(6)

Interest Only

(7)

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, 2019.

(8)

Principal amount of security is adjusted for inflation.

(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, 2019, the Fund held the following restricted securities:

 

Description


  Acquisition
Date


    Shares

    Acquisition
Cost


    Value

    Value
Per Share


    % of
Net Assets


 

Common Stocks

                                               

ION Media Networks, Inc.

    03/05/2014       79     $ 1     $ 65,087     $ 823.89       0.00
                           


         


 

(10)

Perpetual maturity — maturity date reflects the next call date.

(11)

The rate shown is the 7-day yield as of February 28, 2019.

(12)

See Note 5 for cost of investments on a tax basis.

(13)

At February 28, 2019, the Fund had loaned securities with a total value of $35,166,107. This was secured by collateral of $18,909,203, which was received in cash and subsequently invested in short-term investments currently valued at $18,909,203 as reported in the Portfolio of Investments. Additional collateral of $17,154,993 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.

 

 

32


Table of Contents

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

The components of the fixed income pooled securities referenced above are as follows:

 

Securities


   Coupon Range

   Maturity Date Range

   Value as of
February 28, 2019


 

Federal Home Loan Mtg. Corp.

   1.09% to 15.07%    10/25/2025 to 04/15/2051    $ 599,693  

Federal National Mtg. Assoc.

   2.41% to 16.44%    05/25/2023 to 07/25/2054      429,387  

Government National Mtg. Assoc.

   2.25% to 24.63%    01/16/2034 to 08/16/2059      221,493  

United States Treasury Notes/Bonds

   0.13% to 8.75%    07/15/2019 to 11/15/2045      15,904,420  

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 amount and maturity date will be determined upon settlement date.

TIPS—Treasury Inflation Protected Securities

FRS—Floating Rate Security

VRS—Variable Rate Security

The rates shown on FRS and VRS are the current interest rates at February 28, 2019 and unless noted otherwise, the dates are the original maturity dates.

 

Index Legend

1 ML—1 Month USD LIBOR

6 ML—6 Month USD LIBOR

12 ML—12 Month USD LIBOR

1 Yr USTYCR—1 Year US Treasury Yield Curve Rate

 

The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2019 (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

   $ —        $ 44,187,030      $ —        $ 44,187,030  

U.S. Corporate Bonds & Notes:

                                   

Airlines

     —          484,735        37,670        522,405  

Finance - Investment Banker/Broker

     —          1,949,091        41        1,949,132  

Gambling (Non-Hotel)

     —          653,906        97        654,003  

Other Industries

     —          522,305,222        —          522,305,222  

Foreign Corporate Bonds & Notes

     —          119,164,066        —          119,164,066  

Foreign Government Obligations

     —          5,026,795        —          5,026,795  

U.S. Government Agencies

     —          582,967,795        —          582,967,795  

U.S. Government Treasuries

     —          211,505,179        —          211,505,179  

Common Stocks

     —          —          65,087        65,087  

Preferred Securities

     620,450        —          —          620,450  

Preferred Securities/Capital Securities:

                                   

Finance - Investment Banker/Broker

     —          —          15        15  

Other Industries

     —          30,345,573        —          30,345,573  

Short-Term Investments

     120,502,332        —          —          120,502,332  
    


  


  


  


Total Investments at Value

   $ 121,122,782      $ 1,518,589,392      $ 102,910      $ 1,639,815,084  
    


  


  


  



*

For a detailed presentation of investments, please refer to the Portfolio of Investments.

 

At the beginning and end of the reporting period, Level 3 investments in securities were not considered a material portion of the Fund. There were no Level 3 transfers during the reporting period.

 

See Notes to Financial Statements

 

33


Table of Contents

VALIC Company II Government Money Market II Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

U.S. Government Agencies

     76.3

U.S. Government Treasuries

     25.3  
    


       101.6
    


 

Credit Quality@#

 

A-1+

     100.0
    


 

*

Calculated as a percentage of net assets

@

Source: Standards & Poor’s

#

Calculated as a percentage of total debt issues

 

Weighted Average days to Maturity — 27.0 days

 

 

34


Table of Contents

VALIC Company II Government Money Market II Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Principal
Amount
     Value
(Note 2)
 

SHORT-TERM INVESTMENT SECURITIES — 101.6%

 

U.S. Government Agencies — 76.3%

 

Federal Home Loan Bank

                 

2.40% due 03/04/2019

   $ 4,000,000      $ 3,999,212  

2.40% due 03/13/2019

     6,900,000        6,894,560  

2.41% due 03/04/2019

     2,000,000        1,999,605  

2.41% due 03/21/2019

     4,000,000        3,994,722  

2.41% due 04/01/2019

     7,200,000        7,185,275  

2.42% due 03/06/2019

     900,000        899,702  

2.42% due 04/09/2019

     4,000,000        3,989,687  

2.43% due 03/13/2019

     5,100,000        5,095,937  

2.43% due 04/01/2019

     6,000,000        5,987,652  

2.43% due 04/10/2019

     5,000,000        4,986,750  

2.44% due 04/09/2019

     3,000,000        2,992,200  

2.44% due 05/01/2019

     2,000,000        1,991,884  

2.45% due 04/16/2019

     7,000,000        6,978,444  

2.46% due 05/01/2019

     2,000,000        1,991,816  

2.47% due 03/05/2019

     2,500,000        2,499,325  

Federal Home Loan Bank FRS

                 

2.38% (1 ML - 0.13%)
due 03/01/2019

     1,000,000        1,000,000  

2.44% (1 ML - 0.06%)
due 01/14/2020

     2,000,000        1,999,609  

2.49% (3 ML - 0.16%)
due 05/24/2019

     2,000,000        2,000,207  

Federal Home Loan Mtg. Corp.

                 

1.13% due 04/15/2019

     1,057,000        1,055,373  

2.43% due 04/17/2019

     4,000,000        3,987,571  

Federal Home Loan Mtg. Corp. FRS
2.39% (SOFR + 0.01%)
due 07/09/2019

     1,000,000        1,000,000  

Federal National Mtg. Assoc.
2.31% due 03/01/2019

     15,000,000        15,000,000  

Federal National Mtg. Assoc. FRS
2.51% (1 ML+0.00%)
due 03/08/2019

     3,000,000        3,000,043  
             


Total U.S. Government Agencies

                 

(amortized cost $90,529,574)

              90,529,574  
             


Security Description    Principal
Amount
    Value
(Note 2)
 

                  

U.S. Government Treasuries — 25.3%

 

United States Treasury Bills

                

2.35% due 03/05/2019

   $ 1,000,000     $ 998,829  

2.35% due 03/19/2019

     3,000,000       2,999,219  

2.37% due 03/26/2019

     5,100,000       5,091,610  

2.39% due 04/04/2019

     4,000,000       3,991,062  

2.40% due 04/04/2019

     7,000,000       6,984,289  

2.51% due 06/06/2019

     2,000,000       1,986,635  

United States Treasury Notes

                

1.25% due 03/31/2019

     4,000,000       3,996,165  

1.63% due 03/31/2019

     4,000,000       3,997,163  
            


Total U.S. Government Treasuries

                

(amortized cost $30,044,972)

             30,044,972  
            


TOTAL INVESTMENTS

                

(amortized cost $120,574,546)(1)

     101.6     120,574,546  

Liabilities in excess of other assets

     (1.6     (1,943,818
    


 


NET ASSETS

     100.0   $ 118,630,728  
    


 



(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, 2019 and unless noted otherwise, the dates shown are the original maturity dates.

 

Index Legend

 

1 ML—1 Month USD LIBOR

3 ML—3 Month USD LIBOR

SOFR—Secured Overnight Financing Rate

 

The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2019 (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

   $         —          120,574,546      $         —        $ 120,574,546  
    


  


  


  



*

For a detailed presentation of investments, please refer to the Portfolio of Investments.

 

See Notes to Financial Statements

 

35


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Repurchase Agreements

     9.0

Oil Companies — Exploration & Production

     7.8  

Cable/Satellite TV

     6.9  

Registered Investment Companies

     5.7  

Pipelines

     4.2  

Finance — Consumer Loans

     4.1  

Medical — Drugs

     4.0  

Television

     3.3  

Medical — Hospitals

     2.8  

Building — Residential/Commercial

     2.7  

Cellular Telecom

     2.6  

Containers — Paper/Plastic

     2.5  

Telephone — Integrated

     2.4  

Casino Hotels

     2.3  

Rental Auto/Equipment

     2.2  

Diversified Banking Institutions

     2.0  

Food — Misc./Diversified

     1.9  

Banks — Commercial

     1.7  

Gambling (Non-Hotel)

     1.6  

Electronic Components — Semiconductors

     1.5  

Data Processing/Management

     1.5  

Aerospace/Defense

     1.2  

Medical Labs & Testing Services

     1.2  

Retail — Restaurants

     1.1  

Security Services

     1.0  

Steel — Producers

     1.0  

Insurance — Multi-line

     1.0  

Diagnostic Equipment

     0.9  

Hazardous Waste Disposal

     0.9  

Finance — Other Services

     0.9  

Aerospace/Defense — Equipment

     0.9  

Transport — Equipment & Leasing

     0.8  

Office Automation & Equipment

     0.8  

Enterprise Software/Service

     0.8  

Metal — Aluminum

     0.8  

Disposable Medical Products

     0.8  

Real Estate Investment Trusts

     0.8  

Chemicals — Specialty

     0.8  

Electric — Integrated

     0.7  

Gas — Distribution

     0.7  

Coal

     0.7  

Racetracks

     0.7  

Metal Processors & Fabrication

     0.7  

Containers — Metal/Glass

     0.6  

Insurance — Property/Casualty

     0.6  

Retail — Propane Distribution

     0.6  

Soap & Cleaning Preparation

     0.5  

Commercial Services — Finance

     0.5  

Casino Services

     0.5  

Retail — Apparel/Shoe

     0.5  

Electronic Components — Misc.

     0.5  

Retail — Leisure Products

     0.5  

Banks — Mortgage

     0.5  

Machinery — General Industrial

     0.5  

Commercial Services

     0.4  

Metal Products — Fasteners

     0.4  

Textile — Products

     0.4  

Machinery — Material Handling

     0.4  

Internet Connectivity Services

     0.4  

Cosmetics & Toiletries

     0.4  

Building & Construction Products — Misc.

     0.4  

Building — Heavy Construction

     0.4  

Agricultural Chemicals

     0.4  

Retail — Office Supplies

     0.4  

Computers — Memory Devices

     0.4  

Telecom Services

     0.4  

Music

     0.3  

E-Commerce/Services

     0.3  

Broadcast Services/Program

     0.3  

Applications Software

     0.3  

Retail — Pet Food & Supplies

     0.3  

Advertising Services

     0.3  

Retail — Building Products

     0.3  

Medical Information Systems

     0.3  

Oil — Field Services

     0.3  

Medical — Generic Drugs

     0.3  

Insurance Brokers

     0.3  

Theaters

     0.3  

Finance — Credit Card

     0.2  

Semiconductor Equipment

     0.2  

Distribution/Wholesale

     0.2  

Financial Guarantee Insurance

     0.2  

Non-Hazardous Waste Disposal

     0.2  

Oil Refining & Marketing

     0.2  

E-Commerce/Products

     0.2  

Medical — Biomedical/Gene

     0.1  

Funeral Services & Related Items

     0.1  

Industrial Gases

     0.1  

Food — Flour & Grain

     0.1  

Building Products — Doors & Windows

     0.1  
    


       108.0
    


 

Credit Quality†#

 

Baa

     1.1

Ba

     27.7  

B

     49.9  

Caa

     14.6  

Ca

     0.5  

Not Rated@

     6.2  
    


       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.

 

 

36


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Principal
Amount(14)
     Value
(Note 2)
 

CONVERTIBLE BONDS & NOTES — 1.1%

 

Cable/Satellite TV — 0.2%

 

DISH Network Corp.
Senior Notes
3.38% due 08/15/2026

   $ 1,520,000      $ 1,305,528  
             


Casino Hotels — 0.2%

 

Caesars Entertainment Corp.
Senior Notes
5.00% due 10/01/2024

     720,000        1,024,927  
             


Commercial Services - Finance — 0.2%

 

Cardtronics, Inc.
Company Guar. Notes
1.00% due 12/01/2020

     1,360,000        1,304,674  
             


Computers - Memory Devices — 0.3%

 

Western Digital Corp.
Company Guar. Notes
1.50% due 02/01/2024*

     2,015,000        1,776,003  
             


Electronic Components - Semiconductors — 0.2%

 

Microchip Technology, Inc.
Senior Sub. Notes
1.63% due 02/15/2027

     643,000        738,922  

Microchip Technology, Inc.
Junior Sub. Notes
2.25% due 02/15/2037

     663,000        770,675  
             


                1,509,597  
             


Total Convertible Bonds & Notes

                 

(cost $8,160,740)

              6,920,729  
             


U.S. CORPORATE BONDS & NOTES — 67.4%

 

Advertising Services — 0.3%

 

Lamar Media Corp.
Company Guar. Notes
5.75% due 02/01/2026*

     1,785,000        1,867,556  
             


Aerospace/Defense - Equipment — 0.9%

 

TransDigm, Inc.
Senior Sec. Notes
6.25% due 03/15/2026*

     5,240,000        5,357,900  
             


Agricultural Chemicals — 0.4%

 

CF Industries, Inc.
Company Guar. Notes
4.95% due 06/01/2043

     325,000        271,781  

CF Industries, Inc.
Company Guar. Notes
5.15% due 03/15/2034

     1,793,000        1,685,349  

CF Industries, Inc.
Company Guar. Notes
5.38% due 03/15/2044

     515,000        449,981  
             


                2,407,111  
             


Banks - Mortgage — 0.5%

 

Freedom Mtg. Corp.
Senior Notes
8.13% due 11/15/2024*

     3,045,000        2,854,688  
             


Broadcast Services/Program — 0.3%

 

Liberty Interactive LLC
Senior Notes
8.25% due 02/01/2030

     1,991,000        2,035,798  
             


Building & Construction Products - Misc. — 0.4%

 

Standard Industries, Inc.
Senior Notes
5.38% due 11/15/2024*

     2,465,000        2,501,975  
             


Security Description    Principal
Amount(14)
     Value
(Note 2)
 

                   

Building Products - Doors & Windows — 0.1%

 

Jeld-Wen, Inc.
Company Guar. Notes
4.63% due 12/15/2025*

   $ 170,000      $ 160,013  

Jeld-Wen, Inc.
Company Guar. Notes
4.88% due 12/15/2027*#

     270,000        250,087  
             


                410,100  
             


Building - Heavy Construction — 0.4%

 

Brand Industrial Services, Inc.
Senior Notes
8.50% due 07/15/2025*

     2,727,000        2,461,118  
             


Building - Residential/Commercial — 2.7%

 

AV Homes, Inc.
Company Guar. Notes
6.63% due 05/15/2022

     3,215,000        3,315,469  

Beazer Homes USA, Inc.
Company Guar. Notes
5.88% due 10/15/2027#

     1,560,000        1,361,100  

Beazer Homes USA, Inc.
Company Guar. Notes
6.75% due 03/15/2025

     1,145,000        1,067,713  

KB Home
Company Guar. Notes
7.00% due 12/15/2021

     2,905,000        3,072,037  

KB Home
Company Guar. Notes
8.00% due 03/15/2020

     1,461,000        1,524,919  

M/I Homes, Inc.
Company Guar. Notes
5.63% due 08/01/2025

     1,750,000        1,640,625  

M/I Homes, Inc.
Company Guar. Notes
6.75% due 01/15/2021

     3,295,000        3,344,425  

TRI Pointe Group Inc./TRI Pointe Homes Inc.
Company Guar. Notes
5.88% due 06/15/2024

     1,460,000        1,429,431  
             


                16,755,719  
             


Cable/Satellite TV — 5.0%

 

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.13% due 02/15/2023

     150,000        152,438  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.13% due 05/01/2023*

     3,695,000        3,760,032  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.75% due 09/01/2023

     715,000        728,406  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.75% due 01/15/2024

     360,000        368,775  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.75% due 02/15/2026*

     3,740,000        3,851,041  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.88% due 04/01/2024*

     1,490,000        1,551,463  

CSC Holdings LLC
Senior Notes
5.13% due 12/15/2021*

     1,730,000        1,735,432  

CSC Holdings LLC
Senior Notes
5.25% due 06/01/2024

     1,900,000        1,899,354  
 

 

37


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(14)
     Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Cable/Satellite TV (continued)

 

CSC Holdings LLC
Company Guar. Notes
5.50% due 04/15/2027*

   $ 825,000      $ 826,848  

CSC Holdings LLC
Company Guar. Notes
6.50% due 02/01/2029*

     7,250,000        7,585,385  

CSC Holdings LLC
Senior Notes
10.88% due 10/15/2025*

     886,000        1,027,760  

DISH DBS Corp.
Company Guar. Notes
5.00% due 03/15/2023#

     1,695,000        1,508,550  

DISH DBS Corp.
Company Guar. Notes
6.75% due 06/01/2021

     5,951,000        6,084,897  
             


                31,080,381  
             


Casino Hotels — 2.1%

 

Boyd Gaming Corp.
Company Guar. Notes
6.00% due 08/15/2026

     960,000        984,600  

Boyd Gaming Corp.
Company Guar. Notes
6.38% due 04/01/2026

     3,425,000        3,570,563  

Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp.
Senior Sec. Notes
6.75% due 11/15/2021*

     3,015,000        3,105,450  

Station Casinos LLC
Company Guar. Notes
5.00% due 10/01/2025*

     2,125,000        2,063,906  

Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp.
Senior Sec. Notes
5.88% due 05/15/2025*

     3,020,000        2,982,250  
             


                12,706,769  
             


Casino Services — 0.5%

 

Eldorado Resorts, Inc.
Company Guar. Notes
6.00% due 04/01/2025

     2,695,000        2,742,432  

Eldorado Resorts, Inc.
Company Guar. Notes
6.00% due 09/15/2026*

     450,000        457,875  
             


                3,200,307  
             


Cellular Telecom — 2.6%

 

Sprint Corp.
Company Guar. Notes
7.13% due 06/15/2024

     4,189,000        4,314,670  

Sprint Corp.
Company Guar. Notes
7.25% due 09/15/2021

     4,340,000        4,584,125  

Sprint Corp.
Company Guar. Notes
7.63% due 02/15/2025

     2,125,000        2,225,937  

Sprint Corp.
Company Guar. Notes
7.88% due 09/15/2023

     4,576,000        4,897,510  
             


                16,022,242  
             


Chemicals - Specialty — 0.5%

 

Chemours Co.
Company Guar. Notes
6.63% due 05/15/2023

     2,260,000        2,344,863  
Security Description    Principal
Amount(14)
     Value
(Note 2)
 

                   

Chemicals - Specialty (continued)

 

Chemours Co.
Company Guar. Notes
7.00% due 05/15/2025

   $ 455,000      $ 474,338  
             


                2,819,201  
             


Coal — 0.7%

 

Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp.
Sec. Notes
12.00% due 11/01/2021

     2,605,000        1,250,400  

Foresight Energy LLC/Foresight Energy Finance Corp.
Sec. Notes
11.50% due 04/01/2023*

     3,410,000        2,830,300  

Peabody Energy Corp.
Senior Sec. Notes
6.38% due 03/31/2025*

     390,000        383,955  
             


                4,464,655  
             


Commercial Services - Finance — 0.1%

 

ACE Cash Express, Inc.
Senior Sec. Notes
12.00% due 12/15/2022*

     620,000        586,675  
             


Computers - Memory Devices — 0.1%

 

Western Digital Corp.
Company Guar. Notes
4.75% due 02/15/2026

     449,000        424,305  
             


Containers - Paper/Plastic — 2.1%

 

Berry Plastics Corp.
Sec. Notes
6.00% due 10/15/2022

     2,760,000        2,835,900  

Crown Americas LLC/Crown Americas Capital Corp.
Company Guar. Notes
4.75% due 02/01/2026

     2,005,000        2,011,266  

Flex Acquisition Co., Inc.
Senior Notes
6.88% due 01/15/2025*

     3,720,000        3,515,400  

Flex Acquisition Co., Inc.
Senior Notes
7.88% due 07/15/2026*

     1,340,000        1,283,050  

Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC
Senior Sec. Notes
5.13% due 07/15/2023*

     3,080,000        3,080,000  
             


                12,725,616  
             


Cosmetics & Toiletries — 0.4%

 

Revlon Consumer Products Corp.
Company Guar. Notes
6.25% due 08/01/2024

     4,530,000        2,616,075  
             


Data Processing/Management — 0.9%

 

First Data Corp.
Senior Sec. Notes
5.38% due 08/15/2023*

     3,305,000        3,381,444  

First Data Corp.
Sec. Notes
5.75% due 01/15/2024*

     2,415,000        2,486,122  
             


                5,867,566  
             


Diagnostic Equipment — 0.9%

 

Avantor, Inc.
Senior Sec. Notes
6.00% due 10/01/2024*

     5,630,000        5,746,119  
             


Disposable Medical Products — 0.8%

 

Sotera Health Holdings LLC
Senior Notes
6.50% due 05/15/2023*

     5,015,000        5,052,612  
             


 

 

38


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(14)
     Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Distribution/Wholesale — 0.2%

                 

American Builders & Contractors Supply Co., Inc.
Senior Notes
5.75% due 12/15/2023*

   $ 1,370,000      $ 1,404,250  
             


Electric - Integrated — 0.7%

 

AES Corp.
Senior Notes
5.13% due 09/01/2027

     4,355,000        4,474,762  

Texas Competitive Electric Holdings Co. LLC/TCEH Finance, Inc.
Escrow Notes
11.50% due 10/01/2020†(1)

     3,873,748        21,306  
             


                4,496,068  
             


Electronic Components - Semiconductors — 1.2%

 

Micron Technology, Inc.
Senior Notes
4.64% due 02/06/2024

     785,000        790,387  

Micron Technology, Inc.
Senior Notes
4.98% due 02/06/2026

     2,050,000        2,043,978  

Micron Technology, Inc.
Senior Notes
5.50% due 02/01/2025

     1,490,000        1,530,900  

Qorvo, Inc.
Company Guar. Notes
5.50% due 07/15/2026*

     2,850,000        2,899,875  
             


                7,265,140  
             


Enterprise Software/Service — 0.8%

 

Infor Software Parent LLC/Infor Software Parent, Inc.
Senior Notes
7.13% due 05/01/2021*(2)

     595,000        597,380  

Infor US, Inc.
Company Guar. Notes
6.50% due 05/15/2022

     4,478,000        4,566,530  
             


                5,163,910  
             


Finance - Consumer Loans — 3.6%

 

Navient Corp.
Senior Notes
5.88% due 10/25/2024

     2,816,000        2,699,840  

Navient Corp.
Senior Notes
6.50% due 06/15/2022

     2,629,000        2,701,297  

Navient Corp.
Senior Notes
7.25% due 09/25/2023

     1,460,000        1,505,625  

SLM Corp.
Senior Notes
5.50% due 01/25/2023

     1,707,000        1,685,662  

SLM Corp.
Senior Notes
5.63% due 08/01/2033

     350,000        270,375  

SLM Corp.
Senior Notes
6.13% due 03/25/2024

     3,270,000        3,188,250  

Springleaf Finance Corp.
Company Guar. Notes
5.25% due 12/15/2019

     970,000        984,550  

Springleaf Finance Corp.
Company Guar. Notes
6.13% due 05/15/2022

     165,000        171,188  

Springleaf Finance Corp.
Company Guar. Notes
6.13% due 03/15/2024

     485,000        490,456  
Security Description    Principal
Amount(14)
     Value
(Note 2)
 

   

Finance - Consumer Loans (continued)

 

Springleaf Finance Corp.
Company Guar. Notes
6.88% due 03/15/2025

   $ 1,120,000      $ 1,146,600  

Springleaf Finance Corp.
Company Guar. Notes
7.13% due 03/15/2026

     2,710,000        2,743,875  

Springleaf Finance Corp.
Company Guar. Notes
7.75% due 10/01/2021

     2,585,000        2,774,765  

Springleaf Finance Corp.
Company Guar. Notes
8.25% due 12/15/2020

     1,845,000        1,975,534  
             


                22,338,017  
             


Finance - Other Services — 0.9%

 

Tempo Acquisition LLC/Tempo Acquisition Finance Corp.
Senior Notes
6.75% due 06/01/2025*

     4,240,000        4,282,400  

Vantiv LLC/Vanity Issuer Corp.
Company Guar. Notes
4.38% due 11/15/2025*

     1,250,000        1,206,250  
             


                5,488,650  
             


Financial Guarantee Insurance — 0.2%

 

Radian Group, Inc.
Senior Notes
4.50% due 10/01/2024

     1,270,000        1,235,075  
             


Food - Misc./Diversified — 1.9%

 

Post Holdings, Inc.
Company Guar. Notes
5.00% due 08/15/2026*

     4,040,000        3,883,450  

Post Holdings, Inc.
Company Guar. Notes
5.63% due 01/15/2028*

     2,974,000        2,873,627  

Post Holdings, Inc.
Company Guar. Notes
5.75% due 03/01/2027*

     1,440,000        1,416,600  

TreeHouse Foods, Inc.
Company Guar. Notes
4.88% due 03/15/2022

     2,405,000        2,414,861  

TreeHouse Foods, Inc.
Company Guar. Notes
6.00% due 02/15/2024*#

     1,230,000        1,266,900  
             


                11,855,438  
             


Funeral Services & Related Items — 0.1%

 

Service Corp. International
Senior Notes
4.63% due 12/15/2027

     735,000        725,813  
             


Gambling (Non-Hotel) — 1.0%

 

Caesars Resort Collection LLC/CRC Finco, Inc.
Company Guar. Notes
5.25% due 10/15/2025*

     3,025,000        2,869,969  

Jacobs Entertainment, Inc.
Sec. Notes
7.88% due 02/01/2024*

     3,285,000        3,441,037  
             


                6,311,006  
             


Gas - Distribution — 0.7%

 

AmeriGas Partners LP/AmeriGas Finance Corp.
Senior Notes
5.50% due 05/20/2025

     731,000        723,690  

AmeriGas Partners LP/AmeriGas Finance Corp.
Senior Notes
5.75% due 05/20/2027

     875,000        857,500  
 

 

39


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(14)
     Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Gas - Distribution (continued)

 

AmeriGas Partners LP/AmeriGas Finance Corp.
Senior Notes
5.88% due 08/20/2026

   $ 2,904,000      $ 2,910,389  
             


                4,491,579  
             


Hazardous Waste Disposal — 0.2%

 

Clean Harbors, Inc.
Company Guar. Notes
5.13% due 06/01/2021

     1,320,000        1,320,000  
             


Insurance - Multi-line — 0.9%

 

Acrisure LLC/Acrisure Finance, Inc.
Senior Sec. Notes
8.13% due 02/15/2024*

     2,744,000        2,809,170  

Genworth Holdings, Inc.
Company Guar. Notes
4.80% due 02/15/2024

     260,000        214,500  

Genworth Holdings, Inc.
Company Guar. Notes
4.90% due 08/15/2023

     1,215,000        1,025,095  

Genworth Holdings, Inc.
Company Guar. Notes
7.20% due 02/15/2021

     990,000        970,200  

Genworth Holdings, Inc.
Company Guar. Notes
7.63% due 09/24/2021

     539,000        525,660  

Genworth Holdings, Inc.
Company Guar. Notes
7.70% due 06/15/2020#

     86,000        85,570  
             


                5,630,195  
             


Internet Connectivity Services — 0.4%

 

Zayo Group LLC/Zayo Capital, Inc.
Company Guar. Notes
6.00% due 04/01/2023

     2,680,000        2,713,500  
             


Machinery - General Industrial — 0.3%

 

Stevens Holding Co, Inc.
Company Guar. Notes
6.13% due 10/01/2026*

     1,665,000        1,698,300  
             


Machinery - Material Handling — 0.4%

 

Cloud Crane LLC
Sec. Notes
10.13% due 08/01/2024*

     2,570,000        2,737,050  
             


Medical Information Systems — 0.3%

 

Change Healthcare Holdings LLC/Change Healthcare Finance, Inc.
Senior Notes
5.75% due 03/01/2025*

     1,890,000        1,844,546  
             


Medical Labs & Testing Services — 0.9%

 

Catalent Pharma Solutions, Inc.
Company Guar. Notes
4.88% due 01/15/2026*

     520,000        514,800  

West Street Merger Sub, Inc.
Senior Notes
6.38% due 09/01/2025*

     5,180,000        4,830,350  
             


                5,345,150  
             


Medical - Biomedical/Gene — 0.1%

 

Sterigenics-Nordion Topco LLC
Senior Notes
8.13% due 11/01/2021*(2)

     745,000        733,825  
             


Medical - Drugs — 0.0%

 

Valeant Pharmaceuticals International
Company Guar. Notes
8.50% due 01/31/2027*

     20,000        20,775  
             


Security Description    Principal
Amount(14)
     Value
(Note 2)
 

                   

Medical - Generic Drugs — 0.3%

                 

Teva Pharmaceutical Finance IV LLC
Company Guar. Notes
2.25% due 03/18/2020

   $ 1,725,000      $ 1,699,127  
             


Medical - Hospitals — 2.2%

 

CHS/Community Health Systems, Inc.
Sec. Notes
8.13% due 06/30/2024*#

     1,810,000        1,520,400  

HCA Healthcare, Inc.
Senior Notes
6.25% due 02/15/2021

     5,000,000        5,239,200  

HCA, Inc.
Company Guar. Notes
5.38% due 09/01/2026

     4,590,000        4,704,750  

HCA, Inc.
Company Guar. Notes
5.63% due 09/01/2028

     105,000        108,543  

HCA, Inc.
Company Guar. Notes
5.88% due 02/01/2029

     85,000        89,144  

HCA, Inc.
Company Guar. Notes
7.50% due 11/15/2095

     1,820,000        1,829,100  
             


                13,491,137  
             


Metal Processors & Fabrication — 0.7%

 

Novelis Corp.
Company Guar. Notes
5.88% due 09/30/2026*

     1,145,000        1,116,375  

Novelis Corp.
Company Guar. Notes
6.25% due 08/15/2024*

     2,920,000        2,941,900  
             


                4,058,275  
             


Metal Products - Fasteners — 0.4%

 

TriMas Corp.
Company Guar. Notes
4.88% due 10/15/2025*

     2,825,000        2,775,563  
             


Metal - Aluminum — 0.3%

 

Kaiser Aluminum Corp.
Company Guar. Notes
5.88% due 05/15/2024

     1,940,000        1,983,650  
             


Music — 0.3%

 

WMG Acquisition Corp.
Senior Sec. Notes
5.00% due 08/01/2023*

     555,000        556,388  

WMG Acquisition Corp.
Company Guar. Notes
5.50% due 04/15/2026*

     1,578,000        1,587,862  
             


                2,144,250  
             


Non-Hazardous Waste Disposal — 0.2%

 

Waste Pro USA, Inc.
Senior Notes
5.50% due 02/15/2026*

     1,095,000        1,062,150  
             


Office Automation & Equipment — 0.8%

 

Pitney Bowes, Inc.
Senior Notes
4.63% due 03/15/2024#

     570,000        521,550  

Pitney Bowes, Inc.
Senior Notes
4.95% due 04/01/2023

     795,000        747,300  

Xerox Corp.
Senior Notes
3.63% due 03/15/2023

     4,060,000        3,968,650  
             


                5,237,500  
             


 

 

40


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(14)
     Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Oil Companies - Exploration & Production — 6.9%

                 

California Resources Corp.
Sec. Notes
8.00% due 12/15/2022*#

   $ 1,845,000      $ 1,473,694  

Centennial Resource Production LLC
Company Guar. Notes
5.38% due 01/15/2026*

     1,635,000        1,561,425  

Chesapeake Energy Corp.
Company Guar. Notes
7.00% due 10/01/2024#

     3,200,000        3,160,000  

Chesapeake Energy Corp.
Company Guar. Notes
7.50% due 10/01/2026#

     2,075,000        2,043,875  

Chesapeake Energy Corp.
Company Guar. Notes
8.00% due 06/15/2027#

     2,650,000        2,623,500  

Continental Resources, Inc.
Company Guar. Notes
5.00% due 09/15/2022

     425,000        429,395  

Energen Corp.
Senior Notes
4.63% due 09/01/2021

     2,170,000        2,186,275  

Jagged Peak Energy LLC
Company Guar. Notes
5.88% due 05/01/2026*

     3,615,000        3,652,280  

Laredo Petroleum, Inc.
Company Guar. Notes
5.63% due 01/15/2022#

     3,216,000        3,046,420  

Matador Resources Co.
Company Guar. Notes
5.88% due 09/15/2026#

     2,400,000        2,388,000  

QEP Resources, Inc.
Senior Notes
5.25% due 05/01/2023

     2,516,000        2,421,650  

QEP Resources, Inc.
Senior Notes
5.38% due 10/01/2022

     206,000        202,395  

QEP Resources, Inc.
Senior Notes
5.63% due 03/01/2026#

     2,810,000        2,634,375  

QEP Resources, Inc.
Senior Notes
6.80% due 03/01/2020

     245,000        251,431  

SM Energy Co.
Senior Notes
5.00% due 01/15/2024

     3,150,000        2,964,937  

SM Energy Co.
Senior Notes
5.63% due 06/01/2025#

     1,100,000        1,028,500  

SM Energy Co.
Senior Notes
6.13% due 11/15/2022

     365,000        363,175  

SM Energy Co.
Senior Notes
6.63% due 01/15/2027#

     1,275,000        1,214,438  

Vine Oil & Gas LP/Vine Oil & Gas Finance Corp.
Company Guar. Notes
8.75% due 04/15/2023*

     4,000,000        3,230,000  

WPX Energy, Inc.
Senior Notes
5.25% due 09/15/2024

     2,870,000        2,859,237  

WPX Energy, Inc.
Senior Notes
5.75% due 06/01/2026

     740,000        744,625  

WPX Energy, Inc.
Senior Notes
6.00% due 01/15/2022

     841,000        868,333  
Security Description    Principal
Amount(14)
     Value
(Note 2)
 

                   

Oil Companies - Exploration & Production (continued)

                 

WPX Energy, Inc.
Senior Notes
8.25% due 08/01/2023

   $ 970,000      $ 1,087,613  
             


                42,435,573  
             


Oil Refining & Marketing — 0.2%

 

Sunoco LP/Sunoco Finance Corp.
Company Guar. Notes
5.50% due 02/15/2026

     600,000        595,980  

Sunoco LP/Sunoco Finance Corp.
Company Guar. Notes
5.88% due 03/15/2028

     375,000        369,375  
             


                965,355  
             


Pipelines — 4.2%

 

Blue Racer Midstream LLC/Blue Racer Finance Corp.
Company Guar. Notes
6.13% due 11/15/2022*

     4,060,000        4,115,825  

Cheniere Corpus Christi Holdings LLC
Senior Sec. Notes
5.13% due 06/30/2027

     2,585,000        2,636,700  

Cheniere Corpus Christi Holdings LLC
Senior Sec. Notes
5.88% due 03/31/2025

     1,830,000        1,948,968  

DCP Midstream Operating LP
Company Guar. Notes
5.38% due 07/15/2025

     3,790,000        3,941,600  

Energy Transfer Equity LP
Senior Sec. Notes
5.50% due 06/01/2027

     3,605,000        3,785,250  

Energy Transfer Equity LP
Senior Sec. Notes
7.50% due 10/15/2020

     1,350,000        1,434,375  

Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp.
Company Guar. Notes
4.75% due 10/01/2023*

     1,980,000        1,975,050  

Targa Resources Partners LP/Targa Resources Partners Finance Corp.
Company Guar. Notes
6.50% due 07/15/2027*

     4,360,000        4,610,700  

Targa Resources Partners LP/Targa Resources Partners Finance Corp.
Company Guar. Notes
6.75% due 03/15/2024#

     1,650,000        1,728,375  
             


                26,176,843  
             


Racetracks — 0.7%

 

Penn National Gaming, Inc.
Senior Notes
5.63% due 01/15/2027*

     4,555,000        4,352,849  
             


Real Estate Investment Trusts — 0.8%

 

FelCor Lodging LP
Company Guar. Notes
6.00% due 06/01/2025

     4,775,000        4,959,983  
             


Rental Auto/Equipment — 2.2%

 

Avis Budget Car Rental LLC/Avis Budget Finance, Inc.
Company Guar. Notes
5.50% due 04/01/2023#

     2,060,000        2,083,175  

Herc Rentals, Inc.
Sec. Notes
7.50% due 06/01/2022*

     1,372,000        1,430,310  

Herc Rentals, Inc.
Sec. Notes
7.75% due 06/01/2024*#

     2,114,000        2,254,687  
 

 

41


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(14)
     Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Rental Auto/Equipment (continued)

 

United Rentals North America, Inc.
Company Guar. Notes
4.63% due 10/15/2025

   $ 970,000      $ 943,325  

United Rentals North America, Inc.
Company Guar. Notes
4.88% due 01/15/2028

     6,370,000        6,075,387  

United Rentals North America, Inc.
Company Guar. Notes
5.88% due 09/15/2026

     1,025,000        1,048,063  
             


                13,834,947  
             


Retail - Apparel/Shoe — 0.5%

 

L Brands, Inc.
Company Guar. Notes
5.25% due 02/01/2028

     2,895,000        2,504,175  

L Brands, Inc.
Company Guar. Notes
6.75% due 07/01/2036

     465,000        392,925  

L Brands, Inc.
Company Guar. Notes
6.88% due 11/01/2035

     205,000        176,812  
             


                3,073,912  
             


Retail - Building Products — 0.3%

 

Beacon Roofing Supply, Inc.
Company Guar. Notes
4.88% due 11/01/2025*#

     1,995,000        1,857,220  
             


Retail - Leisure Products — 0.5%

 

Party City Holdings, Inc.
Company Guar. Notes
6.13% due 08/15/2023*#

     2,830,000        2,868,912  
             


Retail - Office Supplies — 0.4%

 

Staples, Inc.
Company Guar. Notes
8.50% due 09/15/2025*#

     2,280,000        2,234,400  
             


Retail - Pet Food & Supplies — 0.3%

 

PetSmart, Inc.
Senior Sec. Notes
5.88% due 06/01/2025*

     2,365,000        1,880,175  
             


Retail - Propane Distribution — 0.6%

 

Ferrellgas LP/Ferrellgas Finance Corp.
Senior Notes
6.50% due 05/01/2021

     1,323,000        1,184,085  

Ferrellgas LP/Ferrellgas Finance Corp.
Senior Notes
6.75% due 01/15/2022

     1,271,000        1,131,190  

Ferrellgas LP/Ferrellgas Finance Corp.
Company Guar. Notes
6.75% due 06/15/2023

     1,242,000        1,111,590  
             


                3,426,865  
             


Rubber/Plastic Products — 0.0%

 

Venture Holdings Co. LLC
Company Guar. Notes
11.00% due 06/01/2007†(1)(3)(4)(5)

     50,000        0  
             


Security Services — 0.6%

 

APX Group, Inc.
Company Guar. Notes
7.63% due 09/01/2023#

     2,155,000        1,899,094  

APX Group, Inc.
Senior Sec. Notes
7.88% due 12/01/2022

     2,065,000        2,049,512  
             


                3,948,606  
             


Security Description    Principal
Amount(14)
     Value
(Note 2)
 

                   

Semiconductor Equipment — 0.2%

                 

Entegris, Inc.
Company Guar. Notes
4.63% due 02/10/2026*

   $ 1,500,000      $ 1,473,750  
             


Steel - Producers — 1.0%

 

AK Steel Corp.
Company Guar. Notes
7.00% due 03/15/2027#

     2,400,000        2,016,000  

Steel Dynamics, Inc.
Company Guar. Notes
4.13% due 09/15/2025

     2,170,000        2,109,978  

Steel Dynamics, Inc.
Company Guar. Notes
5.13% due 10/01/2021

     915,000        920,147  

Steel Dynamics, Inc.
Company Guar. Notes
5.50% due 10/01/2024

     1,130,000        1,161,075  
             


                6,207,200  
             


Telecom Services — 0.4%

 

Embarq Corp.
Senior Notes
8.00% due 06/01/2036

     2,240,000        2,161,600  
             


Telephone - Integrated — 1.9%

 

CenturyLink, Inc.
Senior Notes
5.63% due 04/01/2025#

     5,380,000        5,129,615  

CenturyLink, Inc.
Senior Notes
7.50% due 04/01/2024#

     890,000        941,453  

Frontier Communications Corp.
Senior Notes
6.88% due 01/15/2025

     2,690,000        1,452,600  

Frontier Communications Corp.
Sec. Notes
8.50% due 04/01/2026*

     2,920,000        2,715,600  

Sprint Capital Corp.
Company Guar. Notes
6.88% due 11/15/2028

     1,700,000        1,677,687  
             


                11,916,955  
             


Television — 2.7%

 

Gray Television, Inc.
Company Guar. Notes
5.13% due 10/15/2024*

     2,490,000        2,480,662  

Gray Television, Inc.
Company Guar. Notes
5.88% due 07/15/2026*

     1,060,000        1,070,600  

Sinclair Television Group, Inc.
Company Guar. Notes
5.13% due 02/15/2027*

     1,015,000        951,563  

Sinclair Television Group, Inc.
Company Guar. Notes
5.63% due 08/01/2024*

     1,120,000        1,129,800  

Sinclair Television Group, Inc.
Company Guar. Notes
5.88% due 03/15/2026*

     1,585,000        1,561,225  

Sinclair Television Group, Inc.
Company Guar. Notes
6.13% due 10/01/2022

     600,000        613,320  

TEGNA, Inc.
Company Guar. Notes
4.88% due 09/15/2021*

     2,990,000        3,004,950  

TEGNA, Inc.
Company Guar. Notes
5.13% due 10/15/2019

     2,380,000        2,385,950  
 

 

42


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(14)
     Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Television (continued)

 

Tribune Media Co.
Company Guar. Notes
5.88% due 07/15/2022

   $ 3,153,000      $ 3,208,177  
             


                16,406,247  
             


Transport - Equipment & Leasing — 0.3%

 

DAE Funding LLC
Company Guar. Notes
4.50% due 08/01/2022*#

     675,000        668,250  

DAE Funding LLC
Company Guar. Notes
5.00% due 08/01/2024*

     1,345,000        1,333,231  
             


                2,001,481  
             


Total U.S. Corporate Bonds & Notes

                 

(cost $420,477,896)

              417,417,300  
             


FOREIGN CORPORATE BONDS & NOTES — 16.0%

 

Aerospace/Defense — 1.2%

 

Bombardier, Inc.
Senior Notes
6.13% due 01/15/2023*

     4,605,000        4,639,538  

Bombardier, Inc.
Senior Notes
7.88% due 04/15/2027*

     2,755,000        2,734,227  
             


                7,373,765  
             


Cable/Satellite TV — 1.7%

 

Altice Financing SA
Senior Sec. Notes
6.63% due 02/15/2023*

     600,000        613,500  

Altice Financing SA
Senior Sec. Notes
7.50% due 05/15/2026*

     2,210,000        2,138,175  

Altice France SA
Senior Sec. Notes
8.13% due 02/01/2027*

     4,115,000        4,135,575  

Altice Luxembourg SA
Company Guar. Notes
7.75% due 05/15/2022*#

     1,430,000        1,421,062  

Quebecor Media, Inc.
Senior Notes
5.75% due 01/15/2023

     1,415,000        1,465,852  

Ziggo Secured Finance BV
Senior Sec. Notes
5.50% due 01/15/2027*

     835,000        805,775  
             


                10,579,939  
             


Chemicals - Specialty — 0.2%

 

Starfruit Finco BV/Starfruit US Holdco LLC
Senior Notes
8.00% due 10/01/2026*#

     950,000        942,875  
             


Containers - Metal/Glass — 0.6%

 

ARD Finance SA
Senior Sec. Notes
7.13% due 09/15/2023(2)

     3,055,000        3,062,638  

Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.
Company Guar. Notes
7.25% due 05/15/2024*

     845,000        877,490  
             


                3,940,128  
             


Containers - Paper/Plastic — 0.4%

 

Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC
Company Guar. Notes
7.00% due 07/15/2024*

     2,320,000        2,372,200  
             


Security Description    Principal
Amount(14)
     Value
(Note 2)
 

                   

Diversified Banking Institutions — 0.1%

                 

UniCredit SpA
Senior Notes
6.57% due 01/14/2022*

   $ 665,000      $ 680,879  
             


Electronic Components - Misc. — 0.5%

 

Sensata Technologies BV
Company Guar. Notes
5.00% due 10/01/2025*

     1,435,000        1,449,350  

Sensata Technologies BV
Company Guar. Notes
5.63% due 11/01/2024*

     1,430,000        1,501,500  
             


                2,950,850  
             


Finance - Consumer Loans — 0.5%

 

goeasy, Ltd.
Company Guar. Notes
7.88% due 11/01/2022*

     2,885,000        3,029,250  
             


Hazardous Waste Disposal — 0.7%

 

Tervita Escrow Corp.
Sec. Notes
7.63% due 12/01/2021*

     4,285,000        4,274,287  
             


Medical - Drugs — 4.0%

 

Bausch Health Cos., Inc.
Company Guar. Notes
5.88% due 05/15/2023*

     11,800,000        11,741,000  

Bausch Health Cos., Inc.
Company Guar. Notes
6.13% due 04/15/2025*

     2,035,000        1,958,688  

Bausch Health Cos., Inc.
Senior Sec. Notes
7.00% due 03/15/2024*

     455,000        479,456  

Bausch Health Cos., Inc.
Company Guar. Notes
9.00% due 12/15/2025*

     445,000        476,706  

Endo, Ltd./Endo Finance LLC/Endo Finco, Inc.
Company Guar. Notes
6.00% due 07/15/2023*

     3,995,000        3,310,856  

Endo, Ltd./Endo Finance LLC/Endo Finco, Inc.
Company Guar. Notes
6.00% due 02/01/2025*

     925,000        712,250  

Teva Pharmaceutical Finance Netherlands III BV
Company Guar. Notes
3.15% due 10/01/2026

     2,220,000        1,837,591  

Teva Pharmaceutical Finance Netherlands III BV
Company Guar. Notes
6.75% due 03/01/2028#

     1,350,000        1,380,784  

Valeant Pharmaceuticals International, Inc.
Company Guar. Notes
5.50% due 03/01/2023*

     2,990,000        2,975,050  
             


                24,872,381  
             


Medical - Hospitals — 0.6%

 

HCA, Inc.
Company Guar. Notes
5.38% due 02/01/2025

     3,520,000        3,650,909  
             


Metal - Aluminum — 0.5%

 

Alcoa Nederland Holding BV
Company Guar. Notes
6.13% due 05/15/2028*

     345,000        353,194  

Constellium NV
Company Guar. Notes
5.88% due 02/15/2026*

     2,870,000        2,791,075  
             


                3,144,269  
             


 

 

43


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(14)
     Value
(Note 2)
 

FOREIGN CORPORATE BONDS & NOTES (continued)

 

Oil Companies - Exploration & Production — 0.9%

                 

MEG Energy Corp.
Company Guar. Notes
6.38% due 01/30/2023*

   $ 1,680,000      $ 1,533,000  

MEG Energy Corp.
Sec. Notes
6.50% due 01/15/2025*

     1,490,000        1,463,925  

MEG Energy Corp.
Company Guar. Notes
7.00% due 03/31/2024*

     1,190,000        1,088,850  

Tullow Oil PLC
Company Guar. Notes
6.25% due 04/15/2022*#

     1,745,000        1,745,872  
             


                5,831,647  
             


Oil - Field Services — 0.3%

 

Weatherford International, Ltd.
Company Guar. Notes
5.95% due 04/15/2042

     640,000        379,200  

Weatherford International, Ltd.
Company Guar. Notes
6.50% due 08/01/2036

     1,700,000        1,011,500  

Weatherford International, Ltd.
Company Guar. Notes
7.00% due 03/15/2038

     640,000        382,400  
             


                1,773,100  
             


Retail - Restaurants — 1.1%

 

1011778 BC ULC/New Red Finance, Inc.
Sec. Notes
5.00% due 10/15/2025*

     7,185,000        6,955,978  
             


Security Services — 0.4%

 

Garda World Security Corp.
Senior Notes
8.75% due 05/15/2025*

     2,855,000        2,733,662  
             


Soap & Cleaning Preparation — 0.4%

 

Diamond BC BV
Senior Notes
5.63% due 08/15/2025*

   EUR  2,385,000        2,448,860  
             


Special Purpose Entity — 0.0%

 

Hellas Telecommunications Luxembourg II SCA
Sub. Notes
8.46% due 01/15/2015†*(1)(3)(4)(5)

     925,000        0  
             


Telephone - Integrated — 0.5%

 

Telecom Italia SpA
Senior Notes
5.30% due 05/30/2024*

     2,890,000        2,824,975  
             


Television — 0.5%

 

Videotron, Ltd.
Company Guar. Notes
5.00% due 07/15/2022

     2,720,000        2,781,200  
             


Textile - Products — 0.4%

 

Eagle Intermediate Global Holding BV/Ruyi US Finance LLC
Senior Sec. Notes
7.50% due 05/01/2025*

     2,830,000        2,746,515  
             


Transport - Equipment & Leasing — 0.5%

 

Avolon Holdings Funding, Ltd.
Company Guar. Notes
5.25% due 05/15/2024*

     2,125,000        2,178,125  

Fly Leasing, Ltd.
Senior Notes
5.25% due 10/15/2024

     1,140,000        1,083,000  
             


                3,261,125  
             


Total Foreign Corporate Bonds & Notes

                 

(cost $99,881,640)

              99,168,794  
             


Security Description    Principal
Amount(14)
     Value
(Note 2)
 

LOANS(6)(7)(8) — 5.1%

                 

Applications Software — 0.3%

 

SS&C European Holdings SARL FRS
BTL-B4
4.74% (1 ML+2.25%)
due 04/16/2025

   $ 450,278      $ 448,188  

SS&C Technologies, Inc. FRS
BTL-B3
4.74% (1 ML+2.25%)
due 04/16/2025

     1,175,463        1,170,005  

SS&C Technologies, Inc. FRS
BTL-B5
4.74% (1 ML+2.25%)
due 04/16/2025

     364,082        362,444  
             


                1,980,637  
             


Building - Residential/Commercial — 0.0%

 

TOUSA, Inc.
Escrow Loans
12.25% due 08/15/2011†(1)(5)

     2,037,810        0  
             


Chemicals - Specialty — 0.1%

 

Starfruit US HoldCo. LLC FRS
BTL-B
5.76% (1 ML+3.25%)
due 10/01/2025

     505,000        502,475  
             


Commercial Services — 0.4%

 

AVSC Holding Corp. FRS
BTL-B
5.75% (1 ML+3.25%)
due 03/01/2025

     1,364,531        1,344,063  

AVSC Holding Corp. FRS
BTL-B
5.88%-6.05% (3 ML+3.25%)
due 03/01/2025

     1,469,056        1,447,021  
             


                2,791,084  
             


Commercial Services - Finance — 0.2%

 

Trans Union LLC FRS
BTL-B4
4.49% (1 ML+2.00%)
due 06/19/2025

     1,323,350        1,314,748  
             


Data Processing/Management — 0.6%

 

Dun & Bradstreet Corp. FRS
BTL
7.48% (1 ML+5.00%)
due 02/08/2026

     1,580,000        1,581,975  

Dun & Bradstreet Corp. FRS
BTL
coupon TBD
due 02/08/2026

     1,960,000        1,962,450  
             


                3,544,425  
             


E-Commerce/Products — 0.2%

 

Lands’ End, Inc. FRS
BTL-B
5.76% (1 ML+3.25%)
due 04/04/2021

     989,927        940,430  
             


E-Commerce/Services — 0.3%

 

Shutterfly, Inc. FRS
BTL-B2
5.25% (1ML+2.75%)
due 08/17/2024

     2,130,414        2,101,121  
             


Electronic Components - Semiconductors — 0.1%

 

Microchip Technology, Inc. FRS
BTL-B
4.49% (1ML+2.00%)
due 05/29/2025

     921,920        918,750  
             


 

 

44


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description        
Principal
Amount(14)
     Value
(Note 2)
 

LOANS (continued)

 

Finance - Credit Card — 0.2%

                 

Blackhawk Network Holdings LLC FRS
1st Lien
5.49% (1 ML+3.00%)
due 06/15/2025

   $ 1,567,125      $ 1,549,887  
             


Food - Flour & Grain — 0.1%

                 

C.H. Guenther & Son, Inc. FRS
1st Lein
5.24% (1 ML+2.75%)
due 03/31/2025

     492,525        487,600  
             


Gambling (Non-Hotel) — 0.6%

 

Golden Entertainment, Inc. FRS
BTL-B
5.50% (1 ML+3.00%)
due 10/20/2024

     3,514,500        3,488,141  
             


Industrial Gases — 0.1%

 

Messer Industries USA, Inc. FRS
BTL
coupon TBD
due 10/02/2025

     575,000        571,047  
             


Insurance Brokers — 0.3%

 

HUB International, Ltd. FRS
BTL-B1
5.38% (2 ML+2.75%)
due 04/25/2025

     4,275        4,237  

HUB International, Ltd. FRS
BTL-B1
5.51% (3 ML+2.75%)
due 04/25/2025

     1,697,175        1,681,900  
             


                1,686,137  
             


Insurance - Multi-line — 0.1%

 

Genworth Holdings, Inc. FRS
BTL
6.98% (1 ML+4.50%)
due 03/07/2023

     347,375        347,375  
             


Insurance - Property/Casualty — 0.6%

 

Asurion LLC FRS
BTL-B7
5.49% (1 ML+ 3.00%)
due 11/03/2024

     3,681,500        3,679,199  
             


Machinery - General Industrial — 0.2%

 

Gardner Denver, Inc. FRS
BTL-B1
5.24% (1 ML+2.75%)
due 07/30/2024

     948,327        947,537  
             


Medical Labs & Testing Services — 0.3%

 

Syneos Health, Inc. FRS
BTL-B
4.49% (1ML+2.00%)
due 08/01/2024

     1,637,025        1,596,099  
             


Soap & Cleaning Preparation — 0.1%

 

Diamond BC BV FRS
BTL
5.63% (2 ML+3.00%)
due 09/06/2024

     2,163        2,083  

Diamond BC BV FRS
BTL
5.74% (3 ML+3.00%)
due 09/06/2024

     854,188        822,867  
             


                824,950  
             


Security Description        
Principal
Amount(14)
    Value
(Note 2)
 

                  

Theaters — 0.3%

 

Cineworld, Ltd. FRS
BTL
4.99% (1 ML+2.50%)
due 02/28/2025

   $ 2,374,553     $ 2,356,744  
            


Total Loans

                

(cost $31,848,531)

             31,628,386  
            


COMMON STOCKS — 0.1%

                

Multimedia — 0.0%

                

Haights Cross Communication, Inc.†(1)(5)(9)

     10,439       0  
            


Television — 0.1%

 

ION Media Networks, Inc.†(1)(5)(9)

     616       507,514  
            


Total Common Stocks

                

(cost $82,165)

             507,514  
            


PREFERRED SECURITIES/CAPITAL SECURITIES — 3.6%

 

Banks - Commercial — 1.7%

 

Banco Bilbao Vizcaya Argentaria SA
6.13% due 11/16/2027#(10)

   $ 2,400,000       2,163,000  

Banco Bilbao Vizcaya Argentaria SA
8.88% due 04/14/2021(10)

   EUR 1,800,000       2,305,894  

Banco de Sabadell SA
6.50% due 05/18/2022(10)

   EUR 4,400,000       4,732,317  

Intesa Sanpaolo SpA
7.70% due 09/17/2025*#(10)

     1,435,000       1,330,963  
            


               10,532,174  
            


Diversified Banking Institutions — 1.9%

 

BNP Paribas SA
5.13% due 11/15/2027*(10)

     1,855,000       1,637,037  

BNP Paribas SA
7.63% due 03/30/2021*(10)

     1,040,000       1,095,900  

Credit Agricole SA
8.13% due 12/23/2025*(10)

     2,520,000       2,810,506  

Credit Suisse Group AG
6.25% due 12/18/2024(10)

     4,435,000       4,443,870  

UniCredit SpA
8.00% due 06/03/2024(10)

     1,949,000       1,812,570  
            


               11,799,883  
            


Total Preferred Securities/Capital Securities

                

(cost $22,986,539)

             22,332,057  
            


Total Long-Term Investment Securities

                

(cost $583,437,511)

             577,974,780  
            


SHORT-TERM INVESTMENT SECURITIES — 5.7%

 

Registered Investment Companies — 5.7%

 

State Street Navigator Securities Lending Government Money Market Portfolio
2.43%(11)(12)
(cost $35,206,758)

     35,206,758       35,206,758  
            


REPURCHASE AGREEMENTS — 9.0%

 

Agreement with Fixed Income Clearing Corp., bearing interest at 0.50%, dated 02/28/2019 to be repurchased 03/01/2019 in the Amount of $55,862,776 and collateralized by $56,785,000 of United States Treasury Notes, bearing interest at 2.50%, due 01/15/2022 and having an approximate value of $56,979,773
(cost $55,862,000)

   $ 55,862,000       55,862,000  
            


TOTAL INVESTMENTS

                

(cost $674,506,269)(13)

     108.0     669,043,538  

Liabilities in excess of other assets

     (8.0     (49,606,753
    


 


NET ASSETS

     100.0   $ 619,436,785  
    


 


 

 

45


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 


*

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, 2019, the aggregate value of these securities was $270,308,935 representing 43.6% 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)

Illiquid security. At February 28, 2019, the aggregate value of these securities was $528,820 representing 0.1% of net assets.

(2)

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.

(3)

Company has filed for bankruptcy protection.

(4)

Security in default of interest and principal at maturity.

(5)

Securities classified as Level 3 (see Note 2).

(6)

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 Offered 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.

(7)

All loans in the Fund were purchased through assignment agreements unless otherwise indicated.

(8)

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.

(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, 2019, the Fund held the following restricted securities:

 

Description


  Acquisition
Date


    Shares

    Acquisition
Cost


    Value

    Value
Per Share


    % of
Net Assets


 

Common Stocks

                                               

Haights Cross Communications, Inc.

    08/07/2003       2,983     $ 23,474                          
      01/27/2004       4,474       35,211                          
      06/06/2005       2,982       23,474                          
           


 


 


 


 


              10,439       82,159     $ 0     $ 0.00       0.00
           


 


 


 


 


ION Media Networks, Inc.

    12/21/2016       616       6       507,514       823.89       0.08  
                           


         


                            $ 507,514               0.08
                           


         


(10)

Perpetual maturity — maturity date reflects the next call date.

(11)

The rate shown is the 7-day yield as of February 28, 2019.

(12)

At February 28, 2019, the Fund had loaned securities with a total value of $42,844,791. This was secured by collateral of $35,206,758, which was received in cash and subsequently invested in short-term investments currently valued at $35,206,758 as reported in the Portfolio of Investments. Additional collateral of $8,497,726 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, 2019


 

United States Treasury Notes/Bonds

   0.13% to 8.75%    07/15/2019 to 11/15/2045    $ 8,497,726  

 

(13)

See Note 5 for cost of investments on a tax basis.

(14)

Denominated in United States dollars unless otherwise indicated.

 

BTL—Bank Term Loan

TBD—Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to the settlement.

FRS—Floating Rate Security

The rates shown on FRS are the current interest rates at February 28, 2019 and unless noted otherwise, the dates shown are the original maturity dates.

 

Currency Legend

EUR—Euro Currency

 

Index Legend

1 ML—1 Month USD Libor

2 ML—2 Month USD Libor

3 ML—3 Month USD Libor

 
Forward Foreign Currency Contracts                                                 
Counterparty    Contract to Deliver      In Exchange For      Delivery Date      Unrealized
Appreciation
     Unrealized
Depreciation
 

BNP Paribas SA

     USD        1,761,405        EUR        1,548,000        03/29/2019      $ 3,081      $  
                                                 


  


HSBC Bank USA

     EUR        9,727,000        USD        11,056,535        03/29/2019               (30,771
                                                 


  


Net Unrealized Appreciation/(Depreciation)

                                                $ 3,081      $ (30,771
                                                 


  


 

EUR—Euro Currency

USD—United States Dollar

 

46


Table of Contents

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

 

The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2019 (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

   $ —        $ 6,920,729      $ —        $ 6,920,729  

U.S. Corporate Bonds & Notes:

                                   

Rubber/Plastic Products

     —          —          0        0  

Other Industries

     —          417,417,300        —          417,417,300  

Foreign Corporate Bonds & Notes:

                                   

Special Purpose Entity

     —          —          0        0  

Other Industries

     —          99,168,794        —          99,168,794  

Loans:

                                   

Building-Residential/Commercial

     —          —          0        0  

Other Industries

     —          31,628,386        —          31,628,386  

Common Stocks

     —          —          507,514        507,514  

Preferred Securities/Capital Securities

     —          22,332,057        —          22,332,057  

Short-Term Investment Securities

     35,206,758        —          —          35,206,758  

Repurchase Agreements

     —          55,862,000        —          55,862,000  
    


  


  


  


Total Investments at Value

   $ 35,206,758      $ 633,329,266      $ 507,514      $ 669,043,538  
    


  


  


  


Other Financial Instruments:+

                                   

Forward Foreign Currency Contracts

   $ —        $ 3,081      $ —        $ 3,081  
    


  


  


  


LIABILITIES

                                   

Other Financial Instruments:+

                                   

Forward Foreign Currency Contracts

   $ —        $ 30,771      $ —        $ 30,771  
    


  


  


  



*

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.

 

At the beginning and end of the reporting period, Level 3 investments were not considered a material portion of the Fund. There were no Level 3 transfers during the reporting period.

 

See Notes to Portfolio of Investments

 

47


Table of Contents

VALIC Company II International Opportunities Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Real Estate Operations & Development

     3.4

Banks — Commercial

     2.8  

Machinery — General Industrial

     2.5  

E-Commerce/Services

     2.5  

Registered Investment Companies

     2.4  

Building Products — Cement

     2.2  

Computers — Integrated Systems

     2.0  

Electronic Components — Misc.

     2.0  

Cosmetics & Toiletries

     1.9  

Retail — Drug Store

     1.8  

Chemicals — Diversified

     1.8  

Applications Software

     1.7  

Commercial Services

     1.7  

Beverages — Wine/Spirits

     1.6  

Finance — Commercial

     1.6  

Insurance — Property/Casualty

     1.6  

Fisheries

     1.6  

Brewery

     1.5  

Auto/Truck Parts & Equipment — Original

     1.5  

Hotels/Motels

     1.5  

Beverages — Non-alcoholic

     1.5  

Engineering/R&D Services

     1.4  

Medical — Biomedical/Gene

     1.3  

Oil Companies — Exploration & Production

     1.2  

Chemicals — Specialty

     1.2  

Medical Labs & Testing Services

     1.2  

Finance — Credit Card

     1.2  

Gambling (Non-Hotel)

     1.2  

Medical — Drugs

     1.2  

Multimedia

     1.2  

Computer Services

     1.1  

Electric — Generation

     1.1  

Real Estate Investment Trusts

     1.1  

Transport — Services

     1.0  

Food — Retail

     1.0  

Transactional Software

     1.0  

Textile — Products

     1.0  

Retail — Discount

     0.9  

U.S. Government Agencies

     0.9  

Commercial Services — Finance

     0.9  

Machinery — Material Handling

     0.9  

Machinery — Construction & Mining

     0.8  

Investment Management/Advisor Services

     0.8  

Electronic Components — Semiconductors

     0.8  

Building & Construction Products — Misc.

     0.8  

Hazardous Waste Disposal

     0.8  

Food — Catering

     0.8  

Medical Products

     0.8  

Containers — Paper/Plastic

     0.8  

Human Resources

     0.8  

Food — Dairy Products

     0.7  

Oil — Field Services

     0.7  

Apparel Manufacturers

     0.7  

Transport — Truck

     0.7  

Food — Confectionery

     0.7  

Distribution/Wholesale

     0.6  

Building & Construction — Misc.

     0.6  

Cable/Satellite TV

     0.6  

Chemicals — Other

     0.6  

Power Converter/Supply Equipment

     0.6  

Computers — Periphery Equipment

     0.6  

Veterinary Products

     0.6  

E-Services/Consulting

     0.6  

Precious Metals

     0.6  

Leisure Products

     0.6  

Insurance Brokers

     0.6  

Transport — Marine

     0.6  

Aerospace/Defense

     0.6  

Diversified Financial Services

     0.5  

Food — Misc./Diversified

     0.5  

Machine Tools & Related Products

     0.5  

Dental Supplies & Equipment

     0.5  

Building — Residential/Commercial

     0.5  

Energy — Alternate Sources

     0.5  

Miscellaneous Manufacturing

     0.5  

Transport — Rail

     0.5  

Consulting Services

     0.5  

Instruments — Controls

     0.5  

Retail — Misc./Diversified

     0.5  

Retirement/Aged Care

     0.4  

Finance — Other Services

     0.4  

Internet Financial Services

     0.4  

Retail — Consumer Electronics

     0.4  

Repurchase Agreements

     0.4  

Internet Content — Entertainment

     0.4  

Retail — Restaurants

     0.3  

Retail — Apparel/Shoe

     0.3  

Electric Products — Misc.

     0.3  

Insurance — Multi-line

     0.3  

Retail — Automobile

     0.3  

Coatings/Paint

     0.3  

Airport Development/Maintenance

     0.3  

Metal Processors & Fabrication

     0.3  

Oil Refining & Marketing

     0.3  

Audio/Video Products

     0.3  

Casino Hotels

     0.3  

Appliances

     0.3  

Satellite Telecom

     0.3  

Aerospace/Defense — Equipment

     0.3  

Computer Software

     0.2  

Enterprise Software/Service

     0.2  

E-Marketing/Info

     0.2  

Electronic Measurement Instruments

     0.2  

Telephone — Integrated

     0.2  

Rental Auto/Equipment

     0.2  

Diversified Operations

     0.2  

E-Commerce/Products

     0.2  

Real Estate Management/Services

     0.2  

Building — Maintenance & Services

     0.2  

Medical Instruments

     0.2  

Gold Mining

     0.2  

Rubber/Plastic Products

     0.2  

Gas — Distribution

     0.2  

Food — Flour & Grain

     0.2  

Diversified Manufacturing Operations

     0.2  

Electric — Integrated

     0.2  

Web Portals/ISP

     0.2  

MRI/Medical Diagnostic Imaging

     0.2  

Schools

     0.2  

Electronic Connectors

     0.2  

Semiconductor Equipment

     0.2  

Tobacco

     0.1  

Theaters

     0.1  

Paper & Related Products

     0.1  

Soap & Cleaning Preparation

     0.1  

Insurance — Life/Health

     0.1  

Medical — Hospitals

     0.1  

Food — Meat Products

     0.1  

Resorts/Theme Parks

     0.1  

Water

     0.1  

Finance — Consumer Loans

     0.1  

Retail — Home Furnishings

     0.1  

Agricultural Operations

     0.1  

Internet Content — Information/News

     0.1  

Explosives

     0.1  

Industrial Automated/Robotic

     0.1  
 

 

48


Table of Contents

VALIC Company II International Opportunities Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited) — (continued)


 

Industry Allocation* (continued)

 

Diversified Minerals

     0.1

Auto — Heavy Duty Trucks

     0.1  

Home Furnishings

     0.1  

Wireless Equipment

     0.1  

Finance — Investment Banker/Broker

     0.1  

Metal — Iron

     0.1  

Television

     0.1  

Footwear & Related Apparel

     0.1  

Security Services

     0.1  

Machinery — Thermal Process

     0.1  

Consumer Products — Misc.

     0.1  

Instruments — Scientific

     0.1  

Medical — HMO

     0.1  

Diagnostic Equipment

     0.1  

Therapeutics

     0.1  

Retail — Auto Parts

     0.1  

Computers

     0.1  

Electric — Distribution

     0.1  

Steel — Producers

     0.1  

Medical Information Systems

     0.1  

Oil Companies — Integrated

     0.1  

Industrial Gases

     0.1  

Building Products — Air & Heating

     0.1  
    


       101.9
    


 

Country Allocation*

 

Japan

     22.0

United Kingdom

     14.9  

Canada

     6.1  

Germany

     5.6  

Cayman Islands

     4.6  

Australia

     4.2  

United States

     3.8  

Ireland

     3.6  

France

     3.6  

Bermuda

     3.2  

Brazil

     2.4  

Norway

     2.4  

Switzerland

     2.1  

Spain

     1.9  

Italy

     1.8  

Denmark

     1.7  

South Korea

     1.6  

Netherlands

     1.5  

Sweden

     1.4  

Guernsey

     1.4  

India

     1.3  

Israel

     1.2  

Taiwan

     1.1  

Singapore

     1.0  

Austria

     1.0  

Indonesia

     0.8  

Hong Kong

     0.7  

Finland

     0.7  

Portugal

     0.7  

Mexico

     0.6  

Luxembourg

     0.5  

Belgium

     0.5  

Faroe Islands

     0.3  

Mauritius

     0.2  

Thailand

     0.2  

Philippines

     0.2  

South Africa

     0.2  

Chile

     0.2  

Malaysia

     0.2  

Greece

     0.2  

New Zealand

     0.1  

Czech Republic

     0.1  

China

     0.1  
    


       101.9
    


 

*

Calculated as a percentage of net assets

 

 

49


Table of Contents

VALIC Company II International Opportunities Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS — 98.2%

 

Australia — 4.2%

 

Afterpay Touch Group, Ltd.†#

     485,262      $ 6,347,429  

Ansell, Ltd.

     62,512        1,091,722  

ARB Corp, Ltd.

     31,272        375,333  

ASX, Ltd.

     8,484        419,885  

AUB Group, Ltd.

     114,315        1,004,697  

Bapcor, Ltd.#

     85,687        367,124  

Cleanaway Waste Management, Ltd.

     2,413,309        3,714,782  

Computershare, Ltd.

     43,525        532,585  

Crown Resorts, Ltd.

     64,842        527,111  

DuluxGroup, Ltd.

     124,611        643,500  

Iluka Resources, Ltd.

     99,282        645,804  

IPH, Ltd.

     210,365        904,288  

Orica, Ltd.

     52,930        662,685  

Ramsay Health Care, Ltd.#

     16,536        759,857  

Reliance Worldwide Corp., Ltd.#

     301,357        964,092  

Ridley Corp., Ltd.

     510,294        506,768  

Sonic Healthcare, Ltd.#

     58,582        1,002,310  

Steadfast Group, Ltd.

     219,324        485,402  

Technology One, Ltd.

     591,878        3,098,484  

Webjet, Ltd.

     38,384        426,113  

WiseTech Global, Ltd.

     52,519        717,519  
             


                25,197,490  
             


Austria — 1.0%

 

CA Immobilien Anlagen AG

     83,310        2,812,504  

Mayr-Melnhof Karton AG

     6,715        904,336  

Vienna Insurance Group AG Wiener Versicherung Gruppe

     81,336        1,961,330  
             


                5,678,170  
             


Belgium — 0.5%

 

Fagron

     152,233        2,820,733  
             


Bermuda — 3.2%

 

BW Offshore, Ltd.†

     596,945        2,717,303  

Cafe de Coral Holdings, Ltd.

     776,000        2,056,218  

Credicorp, Ltd.

     5,483        1,332,863  

Dairy Farm International Holdings, Ltd.

     198,600        1,775,484  

Esprit Holdings, Ltd.†#

     289,650        67,895  

Geopark, Ltd.†#

     215,327        4,132,125  

Hiscox, Ltd.

     176,264        3,738,265  

Midland Holdings, Ltd.

     2,020,000        476,066  

Peace Mark Holdings, Ltd.†(1)(2)

     686,000        0  

Shangri-La Asia, Ltd.

     800,000        1,137,361  

VTech Holdings, Ltd.

     161,049        1,687,478  
             


                19,121,058  
             


Brazil — 2.4%

 

Anima Holding SA

     132,744        661,573  

BRF SA†

     40,600        222,340  

Cia de Saneamento Basico do Estado de Sao Paulo

     24,200        253,523  

Construtora Tenda SA

     299,000        2,666,693  

Cyrela Brazil Realty SA Empreendimentos e Participacoes

     72,500        330,059  

Embraer SA ADR

     14,721        302,075  

Equatorial Energia SA

     16,100        352,034  

Fleury SA

     59,438        316,484  

Gerdau SA (Preference Shares)

     86,300        347,851  

Instituto Hermes Pardini SA

     55,300        282,084  

Kroton Educacional SA

     114,788        335,243  

Linx SA

     115,500        876,978  

Localiza Rent a Car SA

     70,633        649,700  

Lojas Americanas SA (Preference Shares)

     129,500        686,433  

Lojas Renner SA

     62,100        715,543  

Magazine Luiza SA

     5,600        258,610  

Multiplan Empreendimentos Imobiliarios SA

     154,501        1,035,313  

Notre Dame Intermedica Participacoes SA†

     44,288        391,690  
Security Description    Shares          
Value
(Note 2)
 

                   

Brazil (continued)

 

Rumo SA†

     485,600      $ 2,515,814  

Suzano Papel e Celulose SA

     67,800        860,282  
             


                14,060,322  
             


Canada — 6.1%

 

Agnico Eagle Mines, Ltd.#

     28,141        1,196,893  

ATS Automation Tooling Systems, Inc.†

     220,100        3,099,246  

Canada Goose Holdings, Inc.†#

     61,800        3,520,292  

Capital Power Corp.

     131,100        3,009,636  

Descartes Systems Group, Inc.†

     178,097        6,151,076  

Dollarama, Inc.

     125,666        3,401,514  

Enerplus Corp.#

     317,500        2,798,739  

Finning International, Inc.

     75,400        1,405,496  

Quebecor, Inc., Class B

     281,900        6,848,545  

Seven Generations Energy, Ltd., Class A†

     32,874        240,319  

SSR Mining, Inc.†

     240,000        3,330,218  

TMX Group, Ltd.

     22,464        1,410,370  

TORC Oil & Gas, Ltd.

     37,166        130,764  
             


                36,543,108  
             


Cayman Islands — 4.6%

 

51job, Inc. ADR†

     17,502        1,264,695  

Airtac International Group

     185,535        2,308,902  

Ajisen China Holdings, Ltd.

     493,078        140,076  

China Resources Cement Holdings, Ltd.

     8,320,000        8,860,817  

CIFI Holdings Group Co., Ltd.

     4,548,000        2,966,433  

Haitian International Holdings, Ltd.

     603,000        1,318,192  

Lonking Holdings, Ltd.

     11,277,000        3,778,275  

Midland IC&I, Ltd.†

     1,016,000        29,510  

Pacific Textiles Holdings, Ltd.

     1,821,000        1,702,747  

Shenguan Holdings Group, Ltd.

     596,000        33,408  

Silicon Motion Technology Corp. ADR

     28,863        1,185,692  

Stella International Holdings, Ltd.

     332,000        446,628  

Tingyi Cayman Islands Holding Corp.

     798,000        1,108,086  

YY, Inc. ADR†

     29,400        2,072,700  
             


                27,216,161  
             


Chile — 0.2%

 

Aguas Andinas SA, Class A

     800,417        468,662  

Compania Cervecerias Unidas SA ADR

     24,691        709,125  
             


                1,177,787  
             


China — 0.1%

 

Yunnan Baiyao Group Co., Ltd.(2)

     30,100        383,014  
             


Czech Republic — 0.1%

 

Komercni banka AS

     13,132        551,312  
             


Denmark — 1.7%

 

Carlsberg A/S, Class B

     7,094        859,367  

Dfds A/S#

     9,479        433,245  

DSV A/S

     8,329        692,798  

Jyske Bank A/S

     31,411        1,230,226  

Royal Unibrew A/S

     83,512        6,174,898  

Sydbank A/S

     15,677        373,322  

William Demant Holding A/S†

     14,550        436,987  
             


                10,200,843  
             


Faroe Islands — 0.3%

 

Bakkafrost P/F

     39,100        2,003,289  
             


Finland — 0.7%

 

Tikkurila Oyj

     7,037        116,061  

Valmet Oyj

     159,439        3,971,648  
             


                4,087,709  
             


 

 

50


Table of Contents

VALIC Company II International Opportunities Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

France — 3.6%

 

Alten SA

     60,353      $ 6,222,985  

Edenred

     9,778        433,980  

Elior Group SA*

     37,534        541,347  

Legrand SA

     25,858        1,705,906  

LISI

     30,322        931,223  

Plastic Omnium SA

     18,009        505,553  

Remy Cointreau SA

     36,607        4,767,621  

SEB SA

     6,266        1,079,067  

Sodexo SA

     10,078        1,107,117  

SOITEC†

     37,826        3,018,215  

Somfy SA

     3,126        257,430  

Virbac SA†

     5,090        669,280  
             


                21,239,724  
             


Germany — 5.6%

 

Amadeus Fire AG

     8,855        929,656  

Beiersdorf AG

     9,358        868,145  

Brenntag AG

     21,454        1,063,964  

CTS Eventim AG & Co. KGaA

     61,101        2,745,222  

Deutsche Wohnen SE

     14,964        697,852  

Evotec AG†

     279,893        6,577,403  

Fuchs Petrolub SE (Preference Shares)

     30,052        1,343,377  

GEA Group AG

     55,266        1,324,508  

Hella GmbH & Co. KGaA

     23,993        1,086,175  

Henkel AG & Co. KGaA (Preference Shares)

     8,297        828,983  

Infineon Technologies AG

     26,034        571,667  

LEG Immobilien AG

     28,036        3,130,276  

MTU Aero Engines AG

     7,514        1,611,071  

Rocket Internet SE†*

     23,110        543,604  

Scout24 AG*

     10,199        537,119  

Symrise AG

     48,343        4,260,448  

TAG Immobilien AG

     235,864        5,499,809  
             


                33,619,279  
             


Greece — 0.2%

 

Hellenic Telecommunications Organization SA

     83,874        1,063,737  
             


Guernsey — 1.4%

 

Burford Capital, Ltd.

     364,520        8,557,613  
             


Hong Kong — 0.7%

 

China Resources Beer Holdings Co., Ltd.

     690,000        2,571,101  

Techtronic Industries Co., Ltd.

     282,500        1,887,592  
             


                4,458,693  
             


India — 1.3%

 

Bharat Heavy Electricals, Ltd.

     673,738        611,445  

CESC, Ltd.

     112,332        1,062,575  

CESC Ventures, Ltd.†

     12,032        83,829  

Dabur India, Ltd.

     161,324        997,186  

Federal Bank, Ltd.

     1,091,315        1,291,910  

Mahindra & Mahindra, Ltd.

     69,515        630,926  

MOIL, Ltd.

     286,075        579,179  

PVR, Ltd.

     42,720        897,960  

RP-SG Retail, Ltd.†

     36,098        72,042  

Shriram Transport Finance Co., Ltd.

     68,758        1,103,976  

Tata Global Beverages, Ltd.

     192,396        524,633  
             


                7,855,661  
             


Indonesia — 0.8%

 

Ace Hardware Indonesia Tbk PT

     11,725,700        1,462,847  

Astra Agro Lestari Tbk PT

     756,200        666,563  

Indocement Tunggal Prakarsa Tbk PT

     943,000        1,288,728  

Kalbe Farma Tbk PT

     13,131,800        1,395,560  
             


                4,813,698  
             


Security Description    Shares          
Value
(Note 2)
 

                   

Ireland — 3.6%

 

Bank of Ireland Group PLC

     47,781      $ 310,602  

C&C Group PLC

     977,519        3,402,348  

Dalata Hotel Group PLC

     762,066        5,261,546  

DCC PLC

     19,732        1,707,692  

Glanbia PLC

     206,921        4,196,507  

Greencore Group PLC

     60,618        157,585  

Hibernia REIT PLC

     2,359,823        3,446,486  

Kerry Group PLC, Class A

     11,071        1,139,640  

Paddy Power Betfair PLC

     23,387        1,870,466  
             


                21,492,872  
             


Israel — 1.2%

 

Bezeq The Israeli Telecommunication Corp., Ltd.

     292,726        256,672  

Israel Discount Bank, Ltd., Class A

     2,031,507        7,180,114  
             


                7,436,786  
             


Italy — 1.8%

 

Cerved Group SpA

     240,409        2,216,337  

Davide Campari-Milano SpA

     99,523        949,202  

Enav SpA*

     130,322        670,021  

FinecoBank Banca Fineco SpA

     123,874        1,539,337  

Infrastrutture Wireless Italiane SpA*

     66,888        589,633  

Italgas SpA

     191,097        1,157,676  

Reply SpA

     57,441        3,446,486  
             


                10,568,692  
             


Japan — 22.0%

 

ABC-Mart, Inc.#

     17,400        995,936  

Aeon Delight Co., Ltd.#

     13,700        508,841  

AEON Financial Service Co., Ltd.

     47,300        928,899  

Air Water, Inc.

     18,300        291,579  

Amano Corp.

     32,141        681,661  

Anritsu Corp.

     277,500        5,482,035  

As One Corp.

     5,800        451,137  

Asante, Inc.

     8,000        158,400  

Bic Camera, Inc.

     192,600        2,184,061  

Chiba Bank, Ltd.

     121,300        735,646  

Cosmos Pharmaceutical Corp.

     2,600        475,844  

Daifuku Co., Ltd.

     105,700        5,177,607  

Daikyonishikawa Corp.

     15,787        175,482  

Daiseki Co., Ltd.

     37,900        935,047  

Daiwa Securities Group, Inc.

     114,400        580,390  

Doshisha Co., Ltd.

     6,800        109,322  

Ezaki Glico Co., Ltd.

     21,000        1,062,576  

Fancl Corp.

     198,200        4,489,795  

Fuji Seal International, Inc.

     78,500        2,936,751  

Fujitsu General, Ltd.#

     24,700        330,175  

GMO Payment Gateway, Inc.#

     89,500        5,315,480  

Hamakyorex Co., Ltd.

     6,100        248,181  

Heian Ceremony Service Co., Ltd.

     18,200        151,687  

Hirose Electric Co., Ltd.

     4,300        441,708  

Hogy Medical Co., Ltd.

     3,900        134,181  

Iriso Electronics Co., Ltd.

     10,200        450,680  

Japan Elevator Service Holdings Co., Ltd.

     166,000        3,124,461  

Japan Exchange Group, Inc.

     7,000        123,402  

Japan Meat Co, Ltd.#

     11,800        188,224  

Japan Pure Chemical Co., Ltd.#

     1,900        39,853  

Jeol, Ltd.

     24,200        396,440  

JGC Corp.

     12,260        178,073  

Kakaku.com, Inc.

     13,700        263,147  

Kansai Paint Co., Ltd.

     49,600        910,880  

Kikkoman Corp.

     12,300        611,331  

Kintetsu World Express, Inc.

     13,200        208,898  

Kobayashi Pharmaceutical Co., Ltd.

     12,600        1,015,099  

Koito Manufacturing Co., Ltd.

     30,300        1,750,612  
 

 

51


Table of Contents

VALIC Company II International Opportunities Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Japan (continued)

 

Kusuri no Aoki Holdings Co., Ltd.#

     72,500      $ 5,027,811  

Lion Corp.

     49,800        1,019,992  

Maeda Corp.

     360,300        3,807,773  

Matsumotokiyoshi Holdings Co., Ltd.

     142,100        4,869,887  

Meitec Corp.

     14,900        681,739  

Milbon Co., Ltd.

     14,500        649,778  

Miraca Holdings, Inc.

     4,700        125,696  

Mitsubishi Pencil Co., Ltd.

     10,800        217,715  

MonotaRO Co., Ltd.

     27,600        650,227  

Morinaga & Co., Ltd.

     20,300        908,779  

Nabtesco Corp.

     22,800        601,168  

Nakanishi, Inc.

     59,000        1,054,394  

Net One Systems Co., Ltd.

     158,500        3,702,813  

NGK Spark Plug Co., Ltd.#

     40,100        851,178  

Nihon Kohden Corp.

     24,900        747,235  

Nihon Parkerizing Co., Ltd.

     48,100        634,774  

Nippon Television Holdings, Inc.

     29,200        458,178  

Nissei ASB Machine Co., Ltd.#

     11,400        409,608  

Nitori Holdings Co., Ltd.

     5,400        672,669  

NOF Corp.

     4,100        141,062  

Nomura Research Institute, Ltd.

     42,900        1,743,480  

NS Solutions Corp.

     30,900        815,573  

Obara Group, Inc.

     5,900        197,170  

OBIC Business Consultants Co., Ltd.

     17,300        667,384  

OBIC Co., Ltd.

     80,700        7,696,057  

Omron Corp.

     9,500        409,523  

Park24 Co., Ltd.

     16,400        393,429  

Persol Holdings Co., Ltd.

     203,300        3,479,984  

Proto Corp.

     27,300        399,709  

Rakuten, Inc.

     5,700        44,796  

Rinnai Corp.

     4,300        288,943  

Ryohin Keikaku Co., Ltd.#

     2,600        616,265  

S Foods, Inc.

     13,000        503,252  

Sagami Rubber Industries Co., Ltd.

     6,000        97,430  

San-A Co, Ltd.

     4,200        167,488  

Sankyu, Inc.

     8,700        425,380  

Santen Pharmaceutical Co., Ltd.

     96,800        1,506,733  

Seino Holdings Co., Ltd.

     261,500        3,685,610  

Senko Group Holdings Co., Ltd.

     43,900        365,095  

Seria Co., Ltd.#

     19,300        652,770  

SG Holdings Co., Ltd.

     89,100        2,605,894  

Shima Seiki Manufacturing, Ltd.#

     8,700        284,107  

Shimamura Co., Ltd.

     2,500        211,053  

Shimano, Inc.

     1,500        227,560  

Shizuoka Bank, Ltd.

     48,700        384,043  

SK Kaken Co., Ltd.

     600        254,609  

SMS Co., Ltd.

     228,600        4,044,312  

Sohgo Security Services Co., Ltd.

     9,800        422,895  

Solasto Corp.

     247,400        2,581,314  

Sony Financial Holdings, Inc.

     41,800        789,387  

Stanley Electric Co., Ltd.

     40,900        1,174,180  

Sundrug Co., Ltd.

     26,900        822,940  

Taisei Lamick Co, Ltd.

     10,800        275,269  

Taiyo Yuden Co., Ltd.#

     154,200        3,032,399  

TechnoPro Holdings, Inc.

     120,300        6,486,368  

Terumo Corp.

     17,600        1,076,858  

THK Co., Ltd.

     16,700        409,915  

Tokai Carbon Co., Ltd.#

     268,400        3,717,845  

Toshiba Plant Systems & Services Corp.

     13,800        249,840  

TOTO, Ltd.

     6,900        260,920  

Unicharm Corp.

     55,900        1,777,827  

USS Co., Ltd.

     106,200        1,932,208  

Yamato Holdings Co., Ltd.

     81,400        2,117,065  

Zojirushi Corp.#

     34,800        371,213  
             


                131,142,089  
             


Security Description    Shares          
Value
(Note 2)
 

                   

Luxembourg — 0.5%

 

B&M European Value Retail SA

     157,822      $ 739,972  

Globant SA†

     3,363        231,677  

Solutions 30 SE†

     170,257        2,114,753  
             


                3,086,402  
             


Malaysia — 0.2%

 

Genting Bhd

     603,100        1,093,040  
             


Mauritius — 0.2%

 

MakeMyTrip, Ltd.†#

     51,649        1,458,051  
             


Mexico — 0.6%

 

Arca Continental SAB de CV

     70,413        398,090  

Concentradora Fibra Danhos SA de CV

     305,146        434,897  

Concentradora Fibra Hotelera Mexicana SA de CV*

     62,873        33,358  

Genomma Lab Internacional SAB de CV, Class B†#

     482,069        319,773  

GMexico Transportes SAB de CV#*

     250,600        334,672  

Grupo Aeroportuario del Sureste SAB de CV ADR

     3,869        654,944  

Grupo Financiero Inbursa SAB de CV, Class O

     260,947        389,768  

Grupo Lala SAB de CV#

     241,985        292,419  

Mexichem SAB de CV

     82,741        201,216  

Prologis Property Mexico SA de CV

     217,591        405,132  
             


                3,464,269  
             


Netherlands — 1.5%

 

Aalberts Industries NV

     13,387        494,726  

ASM International NV

     13,815        753,323  

Euronext NV*

     2,096        127,907  

IMCD NV

     61,783        4,848,977  

Takeaway.com NV†*

     33,331        2,441,554  
             


                8,666,487  
             


New Zealand — 0.1%

 

Fletcher Building, Ltd.†

     90,419        301,103  

Freightways, Ltd.

     27,268        146,513  

Mainfreight, Ltd.

     6,799        151,220  
             


                598,836  
             


Norway — 2.4%

 

Aker Solutions ASA†

     141,428        676,674  

Leroy Seafood Group ASA

     577,988        4,356,872  

Mowi ASA#

     35,073        809,126  

Norway Royal Salmon ASA

     90,338        2,127,364  

Scatec Solar ASA*

     309,242        3,003,279  

TGS NOPEC Geophysical Co. ASA

     112,707        3,065,092  
             


                14,038,407  
             


Philippines — 0.2%

 

Metropolitan Bank & Trust Co.

     934,940        1,373,848  
             


Portugal — 0.7%

 

Galp Energia SGPS SA

     19,285        316,532  

NOS SGPS SA

     626,489        3,741,148  
             


                4,057,680  
             


Singapore — 1.0%

 

Ascendas India Trust

     1,494,900        1,249,436  

City Developments, Ltd.

     201,300        1,328,103  

Singapore Technologies Engineering, Ltd.

     574,100        1,588,117  

Venture Corp., Ltd.

     131,963        1,737,383  
             


                5,903,039  
             


South Africa — 0.2%

 

AVI, Ltd.

     196,764        1,250,075  
             


South Korea — 1.6%

 

Dentium Co., Ltd.†

     35,560        1,969,759  
 

 

52


Table of Contents

VALIC Company II International Opportunities Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

South Korea (continued)

 

Doosan Bobcat, Inc.

     49,619      $ 1,407,350  

DuzonBizon Co, Ltd.

     38,406        1,451,280  

Lock&Lock Co., Ltd.

     23,829        402,553  

LS Industrial Systems Co., Ltd.

     31,673        1,492,548  

Orion Corp.

     15,174        1,504,313  

Samsung Fire & Marine Insurance Co., Ltd.

     4,118        1,103,919  

TK Corp.

     38,780        358,595  
             


                9,690,317  
             


Spain — 1.9%

 

Aena SME SA*

     2,882        514,338  

Amadeus IT Group SA

     78,332        5,898,333  

Cellnex Telecom SA#*

     54,031        1,396,930  

CEMEX Latam Holdings SA†

     92,490        150,073  

CIE Automotive SA

     89,944        2,557,669  

Viscofan SA#

     11,774        687,696  
             


                11,205,039  
             


Sweden — 1.4%

 

Essity AB, Class B

     44,195        1,233,115  

Evolution Gaming Group AB*

     71,298        5,322,648  

Saab AB, Series B

     12,015        411,991  

Swedish Match AB

     23,218        1,088,501  

Thule Group AB*

     25,746        572,567  
             


                8,628,822  
             


Switzerland — 2.1%

 

Coca-Cola HBC AG

     15,435        519,175  

DKSH Holding AG

     2,455        144,021  

Dufry AG#

     5,109        518,041  

Geberit AG

     1,727        689,381  

Julius Baer Group, Ltd.

     17,703        773,181  

Kardex AG

     1,859        246,985  

Logitech International SA

     91,991        3,459,168  

Lonza Group AG

     1,402        389,815  

Sika AG

     24,251        3,280,282  

Sonova Holding AG

     6,084        1,137,797  

Temenos AG

     4,738        686,928  

VAT Group AG*

     3,800        395,211  
             


                12,239,985  
             


Taiwan — 1.1%

 

Advantech Co., Ltd.

     47,256        360,832  

E.Sun Financial Holding Co., Ltd.

     2,805,194        2,014,355  

PChome Online, Inc.†

     230,932        1,057,996  

Voltronic Power Technology Corp.

     81,950        1,525,753  

Yuanta Financial Holding Co., Ltd.

     2,443,807        1,385,617  
             


                6,344,553  
             


Thailand — 0.2%

 

AEON Thana Sinsap Thailand PCL(2)

     125,300        713,728  

PTT Global Chemical PCL

     292,800        668,992  
             


                1,382,720  
             


United Kingdom — 14.9%

 

Abcam PLC

     440,504        7,507,771  

Admiral Group PLC

     17,107        495,093  

Ashtead Group PLC

     25,144        667,995  

Auto Trader Group PLC*

     282,714        1,783,768  

Babcock International Group PLC

     74,651        535,662  

Beazley PLC

     592,866        4,305,253  

Bellway PLC

     7,687        308,418  

Britvic PLC

     35,105        427,900  

Bunzl PLC

     118,205        3,720,417  

Burberry Group PLC

     29,078        728,735  
Security Description    Shares/
Principal
Amount
     Value
(Note 2)
 

                   

United Kingdom (continued)

 

Cairn Energy PLC†

     33,158      $ 89,278  

Coats Group PLC

     3,519,341        4,135,739  

Cobham PLC†

     264,195        412,263  

Compass Group PLC

     134,577        2,971,961  

Countryside Properties PLC*

     626,022        2,706,856  

Croda International PLC

     80,412        5,131,144  

Dechra Pharmaceuticals PLC

     84,710        2,777,417  

Drax Group PLC

     701,480        3,394,127  

Elementis PLC

     44,949        107,014  

EMIS Group PLC

     26,199        330,116  

Essentra PLC

     98,596        492,752  

Fevertree Drinks PLC

     186,238        6,615,107  

Forterra PLC*

     40,664        152,365  

GB Group PLC

     297,327        1,930,390  

Greggs PLC

     79,443        1,886,109  

Halma PLC

     66,745        1,375,713  

Hargreaves Lansdown PLC

     41,251        953,105  

Howden Joinery Group PLC

     95,953        627,046  

Ibstock PLC*

     846,722        2,832,331  

IG Group Holdings PLC

     66,508        497,962  

IMI PLC

     46,259        580,424  

Intertek Group PLC

     26,740        1,803,831  

Jardine Lloyd Thompson Group PLC

     71,257        1,803,283  

Just Eat PLC†

     309,743        3,066,417  

Keywords Studios PLC

     187,241        2,781,487  

Meggitt PLC

     77,396        553,511  

Merlin Entertainments PLC*

     155,220        744,448  

Moneysupermarket.com Group PLC

     307,089        1,403,989  

PZ Cussons PLC

     19,515        49,334  

Rathbone Brothers PLC

     45,326        1,385,122  

Rightmove PLC

     365,451        2,336,815  

Rotork PLC

     719,765        2,716,008  

Schroders PLC

     55,763        2,022,840  

Shaftesbury PLC

     46,646        544,756  

Smith & Nephew PLC

     90,134        1,717,324  

Spectris PLC

     16,378        573,269  

Spirax-Sarco Engineering PLC

     13,428        1,187,051  

Stagecoach Group PLC

     122,943        259,926  

Tate & Lyle PLC

     23,554        217,124  

TechnipFMC PLC

     23,184        510,535  

UNITE Group PLC

     93,096        1,130,440  

Weir Group PLC

     11,108        241,623  

Whitbread PLC

     14,670        944,275  
             


                88,473,639  
             


United States — 0.1%

 

Autoliv, Inc. SDR

     3,889        316,981  

Gran Tierra Energy, Inc.†

     120,154        271,179  
             


                588,160  
             


Total Long-Term Investment Securities

 

(cost $496,784,495)

              584,833,209  
      


SHORT-TERM INVESTMENT SECURITIES — 3.3%

 

Registered Investment Companies — 2.4%

 

State Street Navigator Securities Lending Government Money Market Portfolio
2.43%(3)(4)

     14,063,361        14,063,361  
             


U.S. Government Agencies — 0.9%

 

Federal Home Loan Bank
Disc. Notes
2.23% due 03/01/2019

   $ 5,655,000        5,655,000  
             


Total Short-Term Investment Securities

 

(cost $19,718,361)

              19,718,361  
      


 

 

53


Table of Contents

VALIC Company II International Opportunities Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description        
Principal
Amount
    Value
(Note 2)
 

REPURCHASE AGREEMENTS — 0.4%

 

Agreement with Fixed Income Clearing Corp., bearing interest at 0.50%, dated 02/28/2019, to be repurchased 03/01/2019 in the amount of $2,161,030 and collateralized by $2,240,000 of United States Treasury Notes, bearing interest at 1.88%, due 01/31/2022 and having an approximate value of $2,204,859
(cost $2,161,000)

   $ 2,161,000     $ 2,161,000  
            


TOTAL INVESTMENTS

                

(cost $518,663,856)(5)

     101.9     606,712,570  

Liabilities in excess of other assets

     (1.9     (11,364,722
    


 


NET ASSETS

     100.0   $ 595,347,848  
    


 



Non-income producing security

#

The security or a portion thereof is out on loan (see Note 2).

*

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, 2019, the aggregate value of these securities was $25,243,956 representing 4.2% of net assets. Unless otherwise indicated, these securities are not considered to be illiquid.

(1)

Securities classified as Level 3 (see Note 2).

(2)

Illiquid security. At February 28, 2019, the aggregate value of these securities was $1,096,742 representing 0.2% of net assets.

(3)

The rate shown is the 7-day yield as of February 28, 2019.

(4)

At February 28, 2019, the Fund had loaned securities with a total value of $26,882,974. This was secured by collateral of $14,063,361, which was received in cash and subsequently invested in short-term investments currently valued at $14,063,361 as reported in the Portfolio of Investments. Additional collateral of $14,582,603 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, 2019


 

United States Treasury Bills

  0.00%   02/28/2019 to 06/20/2019   $ 256,905  

United States Treasury Notes/Bonds

  zero coupon to 8.75%   03/15/2019 to 11/15/2048     14,325,698  

 

(5)

See Note 5 for cost of investments on a tax basis.

 

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, 2019 (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

   $ 19,121,058      $ —        $ 0      $ 19,121,058  

China

     —          383,014        —          383,014  

Other Countries

     565,329,137        —          —          565,329,137  

Short Term Investment Securities:

                                   

Registered Investment Companies

     14,063,361        —          —          14,063,361  

U.S. Government Agencies

     —          5,655,000        —          5,655,000  

Repurchase Agreements

     —          2,161,000        —          2,161,000  
    


  


  


  


Total Investments at Value

   $ 598,513,556      $ 8,199,014      $         0      $ 606,712,570  
    


  


  


  



*

For a detailed presentation of investments, please refer to the Portfolio of Investments.

 

At the beginning and the end of the reporting period, Level 3 investments in securities were not considered a material portion of the Fund. There were no Level 3 transfers during the reporting period.

 

See Notes to Financial Statements

 

54


Table of Contents

VALIC Company II Large Cap Value Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Diversified Banking Institutions

     9.8

Medical — Drugs

     5.5  

Insurance — Multi-line

     4.8  

Oil Companies — Exploration & Production

     4.6  

Banks — Super Regional

     4.6  

Telephone — Integrated

     4.1  

Insurance — Property/Casualty

     4.0  

Oil Refining & Marketing

     3.5  

Agricultural Chemicals

     2.7  

Cosmetics & Toiletries

     2.7  

Aerospace/Defense — Equipment

     2.6  

Networking Products

     2.5  

Building Products — Cement

     2.3  

Computer Services

     2.1  

Medical Instruments

     2.0  

Food — Misc./Diversified

     1.9  

Enterprise Software/Service

     1.8  

Electronic Components — Semiconductors

     1.7  

Banks — Commercial

     1.7  

Instruments — Controls

     1.6  

Investment Management/Advisor Services

     1.6  

Beverages — Non-alcoholic

     1.6  

Electric — Integrated

     1.6  

Real Estate Investment Trusts

     1.5  

Oil Companies — Integrated

     1.1  

Medical Products

     1.1  

Cable/Satellite TV

     1.1  

Web Portals/ISP

     1.1  

Commercial Paper

     1.1  

Chemicals — Diversified

     1.0  

Medical — HMO

     1.0  

Pharmacy Services

     1.0  

Finance — Credit Card

     1.0  

Electronic Components — Misc.

     1.0  

Semiconductor Components — Integrated Circuits

     0.9  

Oil — Field Services

     0.9  

Diversified Manufacturing Operations

     0.9  

Airlines

     0.9  

Medical — Biomedical/Gene

     0.8  

Advertising Agencies

     0.8  

Transport — Rail

     0.8  

Casino Hotels

     0.7  

Exchange-Traded Funds

     0.7  

Containers — Metal/Glass

     0.7  

Medical Labs & Testing Services

     0.6  

Auto — Cars/Light Trucks

     0.6  

Insurance — Reinsurance

     0.6  

Data Processing/Management

     0.6  

Multimedia

     0.5  

Banks — Fiduciary

     0.5  

Gold Mining

     0.5  

Metal — Copper

     0.5  

Internet Security

     0.4  

Aerospace/Defense

     0.4  

Cellular Telecom

     0.4  

Commercial Services

     0.4  

Medical — Hospitals

     0.4  

Transport — Truck

     0.3  

Retail — Discount

     0.3  

Computer Data Security

     0.3  

Auto/Truck Parts & Equipment — Original

     0.3  

Commercial Services — Finance

     0.3  

Retail — Drug Store

     0.2  

Non-Hazardous Waste Disposal

     0.2  
    


       99.7
    


 

*

Calculated as a percentage of net assets

 

 

55


Table of Contents

VALIC Company II Large Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Shares      Value
(Note 2)
 

COMMON STOCKS — 97.9%

 

Advertising Agencies — 0.8%

 

Omnicom Group, Inc.

     29,557      $ 2,237,465  
             


Aerospace/Defense — 0.4%

 

Raytheon Co.

     5,274        983,601  
             


Aerospace/Defense - Equipment — 2.6%

 

Harris Corp.

     14,423        2,378,785  

United Technologies Corp.

     36,610        4,600,779  
             


                6,979,564  
             


Agricultural Chemicals — 2.7%

 

CF Industries Holdings, Inc.

     90,827        3,832,899  

Mosaic Co.

     85,964        2,688,094  

Nutrien, Ltd.

     15,497        843,657  
             


                7,364,650  
             


Airlines — 0.9%

 

Delta Air Lines, Inc.

     47,191        2,339,730  
             


Auto - Cars/Light Trucks — 0.6%

 

General Motors Co.

     43,642        1,722,986  
             


Auto/Truck Parts & Equipment - Original — 0.3%

 

Aptiv PLC

     10,881        904,320  
             


Banks - Commercial — 1.7%

 

BB&T Corp.

     23,062        1,175,470  

Citizens Financial Group, Inc.

     39,988        1,477,157  

M&T Bank Corp.

     10,891        1,884,796  
             


                4,537,423  
             


Banks - Fiduciary — 0.5%

 

Bank of New York Mellon Corp.

     27,400        1,437,952  
             


Banks - Super Regional — 4.6%

 

PNC Financial Services Group, Inc.

     4,390        553,228  

SunTrust Banks, Inc.

     15,174        984,337  

US Bancorp

     136,801        7,071,244  

Wells Fargo & Co.

     76,987        3,840,881  
             


                12,449,690  
             


Beverages - Non-alcoholic — 1.6%

 

Coca-Cola European Partners PLC

     18,951        893,350  

PepsiCo, Inc.

     29,111        3,366,396  
             


                4,259,746  
             


Building Products - Cement — 2.3%

 

Martin Marietta Materials, Inc.

     14,963        2,810,052  

Vulcan Materials Co.

     30,531        3,402,985  
             


                6,213,037  
             


Cable/Satellite TV — 1.1%

 

Comcast Corp., Class A

     76,451        2,956,360  
             


Casino Hotels — 0.7%

 

Las Vegas Sands Corp.

     31,367        1,926,875  
             


Cellular Telecom — 0.4%

 

Vodafone Group PLC ADR

     55,077        983,124  
             


Chemicals - Diversified — 1.0%

 

DowDuPont, Inc.

     53,742        2,860,687  
             


Commercial Services — 0.4%

 

Quanta Services, Inc.

     27,324        973,827  
             


Commercial Services - Finance — 0.3%

 

Total System Services, Inc.

     9,376        885,094  
             


Security Description    Shares      Value
(Note 2)
 

                   

Computer Data Security — 0.3%

 

Check Point Software Technologies, Ltd.†

     7,575      $ 926,423  
             


Computer Services — 2.1%

 

Cognizant Technology Solutions Corp., Class A

     11,551        819,890  

International Business Machines Corp.

     24,615        3,400,070  

Teradata Corp.†

     31,193        1,508,805  
             


                5,728,765  
             


Containers - Metal/Glass — 0.7%

 

Crown Holdings, Inc.†

     32,745        1,777,726  
             


Cosmetics & Toiletries — 2.7%

 

Colgate-Palmolive Co.

     54,868        3,614,155  

Procter & Gamble Co.

     20,594        2,029,539  

Unilever PLC ADR

     31,501        1,676,798  
             


                7,320,492  
             


Data Processing/Management — 0.6%

 

First Data Corp., Class A†

     30,366        763,401  

Fiserv, Inc.†#

     8,980        760,516  
             


                1,523,917  
             


Diversified Banking Institutions — 9.8%

 

Bank of America Corp.

     219,384        6,379,687  

Citigroup, Inc.

     106,006        6,782,264  

Goldman Sachs Group, Inc.

     10,018        1,970,540  

JPMorgan Chase & Co.

     82,842        8,645,391  

Morgan Stanley

     69,898        2,934,318  
             


                26,712,200  
             


Diversified Manufacturing Operations — 0.9%

 

Carlisle Cos., Inc.

     7,476        920,146  

General Electric Co.

     138,082        1,434,672  
             


                2,354,818  
             


Electric - Integrated — 1.6%

 

Entergy Corp.

     5,840        545,047  

Evergy, Inc.

     37,462        2,094,500  

PPL Corp.

     50,350        1,619,760  
             


                4,259,307  
             


Electronic Components - Misc. — 1.0%

 

Corning, Inc.

     76,726        2,670,832  
             


Electronic Components - Semiconductors — 1.7%

 

Broadcom, Inc.

     6,860        1,888,969  

Microchip Technology, Inc.#

     10,732        932,289  

Texas Instruments, Inc.

     18,269        1,932,495  
             


                4,753,753  
             


Enterprise Software/Service — 1.8%

 

Oracle Corp.

     94,124        4,906,684  
             


Finance - Credit Card — 1.0%

 

American Express Co.

     13,359        1,439,299  

Discover Financial Services

     17,680        1,266,065  
             


                2,705,364  
             


Food - Misc./Diversified — 1.9%

 

Conagra Brands, Inc.#

     158,376        3,701,247  

Kraft Heinz Co.

     18,057        599,312  

Mondelez International, Inc., Class A

     21,089        994,557  
             


                5,295,116  
             


 

 

56


Table of Contents

VALIC Company II Large Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)(continued)


 

Security Description    Shares      Value
(Note 2)
 

COMMON STOCKS (continued)

 

Gold Mining — 0.5%

 

Newmont Mining Corp.

     41,232      $ 1,406,836  
             


Instruments - Controls — 1.6%

 

Honeywell International, Inc.

     29,168        4,493,914  
             


Insurance - Multi-line — 4.8%

 

Assurant, Inc.

     13,733        1,414,362  

Chubb, Ltd.

     16,200        2,169,180  

Hartford Financial Services Group, Inc.

     131,773        6,504,315  

Voya Financial, Inc.

     58,832        2,975,134  
             


                13,062,991  
             


Insurance - Property/Casualty — 4.0%

 

Berkshire Hathaway, Inc., Class B†

     53,788        10,827,524  
             


Insurance - Reinsurance — 0.6%

 

RenaissanceRe Holdings, Ltd.

     10,648        1,565,788  
             


Internet Security — 0.4%

 

Palo Alto Networks, Inc.†

     4,288        1,056,006  
             


Investment Management/Advisor Services — 1.6%

 

Ameriprise Financial, Inc.

     15,219        2,003,277  

LPL Financial Holdings, Inc.

     18,479        1,393,501  

Raymond James Financial, Inc.

     11,517        951,074  
             


                4,347,852  
             


Machinery - General Industrial — 0.0%

 

Wabtec Corp.

     742        54,332  
             


Medical Instruments — 2.0%

 

Boston Scientific Corp.†

     24,376        977,965  

Medtronic PLC

     49,403        4,470,972  
             


                5,448,937  
             


Medical Labs & Testing Services — 0.6%

 

Laboratory Corp. of America Holdings†

     11,786        1,747,157  
             


Medical Products — 1.1%

 

Abbott Laboratories

     38,347        2,976,494  
             


Medical - Biomedical/Gene — 0.8%

 

Biogen, Inc.†

     3,011        987,638  

Gilead Sciences, Inc.

     19,895        1,293,573  
             


                2,281,211  
             


Medical - Drugs — 5.5%

 

Bristol-Myers Squibb Co.

     18,705        966,301  

Johnson & Johnson

     17,727        2,422,217  

Merck & Co., Inc.

     67,757        5,507,967  

Novartis AG ADR

     11,749        1,071,861  

Pfizer, Inc.

     113,226        4,908,347  
             


                14,876,693  
             


Medical - HMO — 1.0%

 

Anthem, Inc.

     3,173        954,216  

Centene Corp.†

     14,828        902,877  

Humana, Inc.

     3,362        958,305  
             


                2,815,398  
             


Medical - Hospitals — 0.4%

 

HCA Healthcare, Inc.

     6,876        956,039  
             


Metal - Copper — 0.5%

 

Freeport-McMoRan, Inc.

     103,784        1,338,814  
             


Multimedia — 0.5%

 

Twenty-First Century Fox, Inc., Class B

     29,007        1,454,991  
             


Security Description    Shares      Value
(Note 2)
 

                   

Networking Products — 2.5%

 

Cisco Systems, Inc.

     130,997      $ 6,781,715  
             


Non-Hazardous Waste Disposal — 0.2%

 

Republic Services, Inc.

     7,551        592,225  
             


Oil Companies - Exploration & Production — 4.6%

 

Anadarko Petroleum Corp.

     22,733        988,885  

Cimarex Energy Co.

     12,345        887,729  

ConocoPhillips

     41,679        2,827,920  

Hess Corp.

     68,143        3,942,073  

Occidental Petroleum Corp.

     60,506        4,002,472  
             


                12,649,079  
             


Oil Companies - Integrated — 1.1%

 

Chevron Corp.

     16,834        2,013,010  

Royal Dutch Shell PLC, Class A ADR

     15,843        985,593  
             


                2,998,603  
             


Oil Refining & Marketing — 3.5%

 

Marathon Petroleum Corp.

     70,811        4,390,990  

Phillips 66

     45,122        4,347,956  

Valero Energy Corp.

     10,910        889,820  
             


                9,628,766  
             


Oil - Field Services — 0.9%

 

Apergy Corp.†

     39,367        1,652,627  

Schlumberger, Ltd.

     18,283        805,549  
             


                2,458,176  
             


Pharmacy Services — 1.0%

 

Cigna Corp.

     5,045        880,050  

CVS Health Corp.

     32,378        1,872,420  
             


                2,752,470  
             


Real Estate Investment Trusts — 1.5%

 

Equity Residential

     34,923        2,573,476  

Public Storage

     2,077        439,264  

Weyerhaeuser Co.

     42,866        1,066,935  
             


                4,079,675  
             


Retail - Discount — 0.3%

 

Target Corp.

     12,852        933,569  
             


Retail - Drug Store — 0.2%

 

Walgreens Boots Alliance, Inc.

     8,588        611,380  
             


Semiconductor Components - Integrated Circuits — 0.9%

 

QUALCOMM, Inc.

     47,380        2,529,618  
             


Telephone - Integrated — 4.1%

 

AT&T, Inc.

     174,544        5,431,809  

Verizon Communications, Inc.

     99,848        5,683,348  
             


                11,115,157  
             


Transport - Rail — 0.8%

 

Union Pacific Corp.

     13,221        2,217,162  
             


Transport - Truck — 0.3%

 

Knight - Swift Transportation Holdings, Inc.#

     28,189        947,996  
             


Web Portals/ISP — 1.1%

 

Alphabet, Inc., Class A†

     2,619        2,950,435  
             


Total Common Stocks

 

(cost $256,228,077)

              266,908,531  
             


 

 

57


Table of Contents

VALIC Company II Large Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) (continued)


 

Security Description    Shares/
Principal
Amount
    Value
(Note 2)
 

EXCHANGE-TRADED FUNDS — 0.7%

 

iShares Russell 1000 Value ETF
(cost $2,005,135)

     16,209     $ 1,999,380  
            


Total Long-Term Investment Securities

                

(cost $258,233,212)

             268,907,911  
            


SHORT-TERM INVESTMENT SECURITIES — 1.1%

 

Commercial Paper — 1.1%

 

Credit Agricole Corporate and Investment Bank
2.37% due 03/01/2019
(cost $2,900,000)

   $ 2,900,000       2,899,808  
            


TOTAL INVESTMENTS

                

(cost $261,133,212)(1)

     99.7     271,807,719  

Other assets less liabilities

     0.3       829,346  
    


 


NET ASSETS

     100.0   $ 272,637,065  
    


 



Non-income producing security

#

The security or a portion thereof is out on loan (see Note 2).

At February 28, 2019, the Fund had loaned securities with a total value of $6,342,048. This was secured by collateral of $6,527,054 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, 2019


 

United States Treasury Bills

  0.00%   03/07/2019 to 06/20/2019   $ 42,507  

United States Treasury Notes/Bonds

  zero coupon to 8.75%   03/15/2019 to 11/15/2048     6,484,547  

 

(1)

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, 2019 (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

   $ 266,908,531      $ —        $         —        $ 266,908,531  

Exchange-Traded Funds

     1,999,380        —          —          1,999,380  

Short-Term Investment Securities

     —          2,899,808        —          2,899,808  
    


  


  


  


Total Investments at Value

   $ 268,907,911      $ 2,899,808      $ —        $ 271,807,719  
    


  


  


  



*

For a detailed presentation of investments, please refer to the Portfolio of Investments.

 

See Notes to Financial Statements

 

58


Table of Contents

VALIC Company II Mid Cap Growth Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Medical — Biomedical/Gene

     6.4

Commercial Services — Finance

     6.3  

Banks — Commercial

     6.0  

Computer Services

     5.2  

Medical Instruments

     4.5  

Insurance — Property/Casualty

     4.4  

Enterprise Software/Service

     4.3  

Oil Companies — Exploration & Production

     2.7  

Medical — Drugs

     2.6  

E-Commerce/Services

     2.6  

Medical Products

     2.3  

Machinery — General Industrial

     2.2  

Commercial Services

     2.2  

Electronic Measurement Instruments

     2.2  

Containers — Metal/Glass

     2.1  

Web Hosting/Design

     2.0  

Distribution/Wholesale

     2.0  

Building Products — Air & Heating

     1.9  

Gas — Distribution

     1.8  

Apparel Manufacturers

     1.7  

E-Services/Consulting

     1.7  

Electronic Components — Semiconductors

     1.6  

Building — Residential/Commercial

     1.3  

Lasers — System/Components

     1.3  

Transport — Rail

     1.3  

Data Processing/Management

     1.2  

Airlines

     1.1  

Hotels/Motels

     1.1  

Applications Software

     1.1  

Finance — Auto Loans

     1.1  

Multimedia

     1.1  

Disposable Medical Products

     1.1  

Non-Hazardous Waste Disposal

     1.0  

Rental Auto/Equipment

     1.0  

Instruments — Controls

     1.0  

Telecommunication Equipment

     1.0  

Machine Tools & Related Products

     0.9  

Internet Infrastructure Software

     0.9  

Semiconductor Equipment

     0.9  

Computer Software

     0.9  

Auto — Heavy Duty Trucks

     0.9  

Aerospace/Defense — Equipment

     0.9  

Banks — Fiduciary

     0.8  

Therapeutics

     0.8  

Real Estate Investment Trusts

     0.8  

Retail — Automobile

     0.8  

Schools

     0.8  

E-Commerce/Products

     0.7  

Containers — Paper/Plastic

     0.7  

Real Estate Management/Services

     0.6  

Food — Catering

     0.6  

Insurance — Reinsurance

     0.6  

Electric — Integrated

     0.6  

Registered Investment Companies

     0.6  

Diagnostic Equipment

     0.5  

Printing — Commercial

     0.5  

Audio/Video Products

     0.4  

Funeral Services & Related Items

     0.3  

Machinery — Pumps

     0.2  

Medical — HMO

     0.2  

Linen Supply & Related Items

     0.2  
    


       100.5
    


 

*

Calculated as a percentage of net assets

 

 

59


Table of Contents

VALIC Company II Mid Cap Growth Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description        
    
Shares
     Value
(Note 2)
 

COMMON STOCKS — 99.9%

 

Aerospace/Defense - Equipment — 0.9%

 

HEICO Corp., Class A

     24,781      $ 1,982,232  
             


Airlines — 1.1%

 

JetBlue Airways Corp.†

     96,426        1,610,314  

Spirit Airlines, Inc.†

     18,300        1,029,375  
             


                2,639,689  
             


Apparel Manufacturers — 1.7%

 

Carter’s, Inc.

     23,617        2,301,241  

Under Armour, Inc., Class C†#

     79,041        1,587,143  
             


                3,888,384  
             


Applications Software — 1.1%

 

PTC, Inc.†

     27,514        2,553,849  
             


Audio/Video Products — 0.4%

 

Roku, Inc.†

     14,416        955,637  
             


Auto - Heavy Duty Trucks — 0.9%

 

PACCAR, Inc.

     29,608        2,007,422  
             


Banks - Commercial — 6.0%

 

Cullen/Frost Bankers, Inc.#

     22,389        2,321,291  

First Citizens BancShares, Inc., Class A

     3,845        1,678,650  

First Republic Bank

     27,649        2,902,592  

M&T Bank Corp.

     15,583        2,696,794  

Pinnacle Financial Partners, Inc.

     16,345        959,288  

Prosperity Bancshares, Inc.#

     26,868        2,000,323  

South State Corp.

     18,673        1,326,530  
             


                13,885,468  
             


Banks - Fiduciary — 0.8%

 

Northern Trust Corp.

     20,852        1,943,406  
             


Building Products - Air & Heating — 1.9%

 

Lennox International, Inc.

     17,431        4,274,953  
             


Building - Residential/Commercial — 1.3%

 

NVR, Inc.†

     1,173        3,073,260  
             


Commercial Services — 2.2%

 

Cintas Corp.

     11,553        2,386,850  

CoStar Group, Inc.†

     5,899        2,698,969  
             


                5,085,819  
             


Commercial Services - Finance — 6.3%

 

Global Payments, Inc.

     26,244        3,421,693  

Total System Services, Inc.

     22,585        2,132,024  

TransUnion

     60,247        3,889,546  

WEX, Inc.†

     28,628        5,097,502  
             


                14,540,765  
             


Computer Services — 5.2%

 

EPAM Systems, Inc.†

     14,287        2,311,351  

Genpact, Ltd.

     169,959        5,646,038  

Teradata Corp.†

     83,550        4,041,313  
             


                11,998,702  
             


Computer Software — 0.9%

 

Akamai Technologies, Inc.†

     30,339        2,113,415  
             


Containers - Metal/Glass — 2.1%

 

Ball Corp.

     66,787        3,658,592  

Silgan Holdings, Inc.

     39,057        1,105,704  
             


                4,764,296  
             


Containers - Paper/Plastic — 0.7%

 

Packaging Corp. of America

     17,212        1,645,295  
             


Security Description        
    
Shares
     Value
(Note 2)
 

                   

Data Processing/Management — 1.2%

 

Fair Isaac Corp.†

     11,254      $ 2,788,966  
             


Diagnostic Equipment — 0.5%

 

Repligen Corp.†#

     20,220        1,203,494  
             


Disposable Medical Products — 1.1%

 

STERIS PLC

     20,340        2,460,326  
             


Distribution/Wholesale — 2.0%

 

Fastenal Co.#

     37,576        2,365,034  

KAR Auction Services, Inc.

     45,154        2,129,011  
             


                4,494,045  
             


E-Commerce/Products — 0.7%

 

Etsy, Inc.†

     24,224        1,726,444  
             


E-Commerce/Services — 2.6%

 

Cargurus, Inc.†#

     30,763        1,314,503  

GrubHub, Inc.†

     1,200        97,896  

TripAdvisor, Inc.†

     46,215        2,457,252  

Zillow Group, Inc., Class A†#

     12,440        515,389  

Zillow Group, Inc., Class C†#

     36,345        1,519,221  
             


                5,904,261  
             


E-Services/Consulting — 1.7%

 

CDW Corp.

     40,738        3,824,891  
             


Electric - Integrated — 0.6%

 

Black Hills Corp.

     18,408        1,306,600  
             


Electronic Components - Semiconductors — 1.6%

 

Monolithic Power Systems, Inc.

     14,938        2,003,335  

Silicon Laboratories, Inc.†

     22,134        1,793,297  
             


                3,796,632  
             


Electronic Measurement Instruments — 2.2%

 

Keysight Technologies, Inc.†

     31,514        2,660,097  

National Instruments Corp.

     51,449        2,404,726  
             


                5,064,823  
             


Enterprise Software/Service — 4.3%

 

Black Knight, Inc.†

     32,745        1,710,926  

Blackbaud, Inc.

     35,083        2,709,811  

Guidewire Software, Inc.†

     27,995        2,568,262  

Veeva Systems, Inc., Class A†

     24,099        2,841,513  
             


                9,830,512  
             


Finance - Auto Loans — 1.1%

 

Credit Acceptance Corp.†#

     5,798        2,550,308  
             


Food - Catering — 0.6%

 

Aramark

     45,916        1,391,255  
             


Funeral Services & Related Items — 0.3%

 

Service Corp. International

     17,708        732,049  
             


Gas - Distribution — 1.8%

 

NiSource, Inc.

     36,426        982,774  

UGI Corp.

     55,666        3,056,063  
             


                4,038,837  
             


Hotels/Motels — 1.1%

 

Choice Hotels International, Inc.

     32,619        2,604,301  
             


Instruments - Controls — 1.0%

 

Mettler-Toledo International, Inc.†

     3,325        2,264,026  
             


Insurance - Property/Casualty — 4.4%

 

Alleghany Corp.†

     2,697        1,734,063  

Fidelity National Financial, Inc.

     35,123        1,232,466  

Markel Corp.†

     3,622        3,639,675  
 

 

60


Table of Contents

VALIC Company II Mid Cap Growth Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description        
    
Shares
     Value
(Note 2)
 

COMMON STOCKS (continued)

 

Insurance - Property/Casualty (continued)

 

White Mountains Insurance Group, Ltd.

     1,899      $ 1,783,902  

WR Berkley Corp.

     19,564        1,636,724  
             


                10,026,830  
             


Insurance - Reinsurance — 0.6%

 

Fairfax Financial Holdings, Ltd.

     2,723        1,348,164  
             


Internet Infrastructure Software — 0.9%

 

F5 Networks, Inc.†

     12,816        2,154,882  
             


Lasers - System/Components — 1.3%

 

II-VI, Inc.†#

     70,249        2,984,178  
             


Linen Supply & Related Items — 0.2%

 

UniFirst Corp.

     2,403        345,599  
             


Machine Tools & Related Products — 0.9%

 

Lincoln Electric Holdings, Inc.

     25,223        2,179,772  
             


Machinery - General Industrial — 2.2%

 

IDEX Corp.

     25,527        3,678,441  

Middleby Corp.†#

     11,501        1,409,907  
             


                5,088,348  
             


Machinery - Pumps — 0.2%

 

Gardner Denver Holdings, Inc.†

     18,248        489,959  
             


Medical Instruments — 4.5%

 

Bio-Techne Corp.

     12,181        2,361,896  

Integra LifeSciences Holdings Corp.†#

     41,027        2,260,177  

NuVasive, Inc.†

     43,019        2,533,819  

Teleflex, Inc.

     11,170        3,237,513  
             


                10,393,405  
             


Medical Products — 2.3%

 

Hill-Rom Holdings, Inc.

     23,605        2,503,310  

Varian Medical Systems, Inc.†

     19,995        2,686,528  
             


                5,189,838  
             


Medical - Biomedical/Gene — 6.4%

 

Alnylam Pharmaceuticals, Inc.†#

     21,790        1,852,150  

Bluebird Bio, Inc.†#

     15,498        2,405,600  

Ionis Pharmaceuticals, Inc.†#

     36,679        2,603,842  

Sage Therapeutics, Inc.†#

     16,771        2,670,782  

Seattle Genetics, Inc.†#

     41,596        3,089,751  

Ultragenyx Pharmaceutical, Inc.†#

     33,353        2,139,261  
             


                14,761,386  
             


Medical - Drugs — 2.6%

 

Aerie Pharmaceuticals, Inc.†#

     41,438        1,933,911  

Alkermes PLC†#

     55,225        1,837,336  

PRA Health Sciences, Inc.†

     21,119        2,259,311  
             


                6,030,558  
             


Medical - HMO — 0.2%

 

Molina Healthcare, Inc.†

     3,198        430,547  
             


Multimedia — 1.1%

 

FactSet Research Systems, Inc.#

     10,500        2,469,285  
             


Non-Hazardous Waste Disposal — 1.0%

 

Waste Connections, Inc.

     28,764        2,398,918  
             


Oil Companies - Exploration & Production — 2.7%

 

Diamondback Energy, Inc.

     18,054        1,858,298  

Encana Corp.

     234,614        1,700,952  

WPX Energy, Inc.†

     215,451        2,658,665  
             


                6,217,915  
             


Security Description   

Shares

    Value
(Note 2)
 

                  

Printing - Commercial — 0.5%

 

Cimpress NV†

     13,764     $ 1,135,530  
            


Real Estate Investment Trusts — 0.8%

 

Equity Commonwealth

     57,391       1,873,816  
            


Real Estate Management/Services — 0.6%

 

Redfin Corp.†#

     74,341       1,484,590  
            


Rental Auto/Equipment — 1.0%

 

AMERCO

     6,020       2,315,232  
            


Retail - Automobile — 0.8%

 

CarMax, Inc.†#

     29,159       1,810,774  
            


Schools — 0.8%

 

2U, Inc.†#

     23,635       1,741,899  
            


Semiconductor Equipment — 0.9%

 

MKS Instruments, Inc.

     25,818       2,139,538  
            


Telecommunication Equipment — 1.0%

 

CommScope Holding Co., Inc.†

     96,203       2,242,492  
            


Therapeutics — 0.8%

 

Agios Pharmaceuticals, Inc.†#

     29,051       1,884,538  
            


Transport - Rail — 1.3%

 

Genesee & Wyoming, Inc., Class A†

     36,149       2,964,218  
            


Web Hosting/Design — 2.0%

 

VeriSign, Inc.†

     25,693       4,574,382  
            


Total Long-Term Investment Securities

 

(cost $205,875,216)

             230,010,955  
     


SHORT-TERM INVESTMENT SECURITIES — 0.6%

 

Registered Investment Companies — 0.6%

 

State Street Navigator Securities Lending Government Money Market Portfolio
2.43%(1)(2)
(cost $1,232,672)

     1,232,672       1,232,672  
            


TOTAL INVESTMENTS

                

(cost $207,107,888)(3)

     100.5     231,243,627  

Liabilities in excess of other assets

     (0.5     (1,046,829
    


 


NET ASSETS

     100.0   $ 230,196,798  
    


 



Non-income producing security

#

The security or a portion thereof is out on loan (see Note 2).

(1)

At February 28, 2019, the Fund had loaned securities with a total value of $44,572,459. This was secured by collateral of $1,232,672, which was received in cash and subsequently invested in short-term investments currently valued at $1,232,672 as reported in the Portfolio of Investments. Additional collateral of $44,340,238 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, 2019


 

Federal Home Loan Mtg. Corp.

  3.00% to 3.50%   12/15/2040 to 12/01/2047   $ 1,854,937  

Federal National Mtg. Assoc.

  3.00% to 4.50%   07/25/2041 to 05/01/2048     1,256,433  

Government National Mtg. Assoc.

  2.50% to 5.00%   05/20/2046 to 08/20/2048     1,020,424  

United States Treasury Bills

  0.00%   03/07/2019 to 06/20/2019     1,626,937  

United States Treasury Notes/Bonds

  zero coupon to 8.75%   03/15/2019 to 11/15/2048     38,581,507  

 

(2)

The rate shown is the 7-day yield as of February 28, 2019.

(3)

See Note 5 for cost of investments on a tax basis.

 

 

61


Table of Contents

VALIC Company II Mid Cap Growth Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

 

The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2019 (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

   $ 230,010,955      $         —        $         —        $ 230,010,955  

Short-Term Investment Securities

     1,232,672        —          —          1,232,672  
    


  


  


  


Total Investments at Value

   $ 231,243,627      $ —        $ —        $ 231,243,627  
    


  


  


  



*

For a detailed presentation of investments, please refer to the Portfolio of Investments.

 

See Notes to Financial Statements

 

62


Table of Contents

VALIC Company II Mid Cap Value Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Real Estate Investment Trusts

     10.1

Electric — Integrated

     4.9  

Banks — Commercial

     4.8  

Oil Companies — Exploration & Production

     4.8  

Banks — Super Regional

     3.3  

Insurance — Property/Casualty

     3.3  

Aerospace/Defense — Equipment

     2.5  

Computer Services

     2.2  

Insurance — Reinsurance

     2.1  

Chemicals — Diversified

     2.1  

Diversified Manufacturing Operations

     1.7  

Insurance — Life/Health

     1.7  

Finance — Credit Card

     1.5  

Insurance — Multi-line

     1.5  

Registered Investment Companies

     1.4  

Steel — Producers

     1.4  

Airlines

     1.4  

Medical Products

     1.4  

Medical Labs & Testing Services

     1.4  

Electronic Parts Distribution

     1.4  

Finance — Investment Banker/Broker

     1.3  

Insurance Brokers

     1.2  

Finance — Consumer Loans

     1.1  

Gas — Distribution

     1.0  

Data Processing/Management

     1.0  

Auto/Truck Parts & Equipment — Original

     1.0  

Food — Misc./Diversified

     0.9  

Chemicals — Specialty

     0.9  

Agricultural Chemicals

     0.9  

Electronic Components — Semiconductors

     0.9  

Electric Products — Misc.

     0.9  

Medical — Wholesale Drug Distribution

     0.9  

Electronic Measurement Instruments

     0.9  

Distribution/Wholesale

     0.8  

Computer Software

     0.8  

Human Resources

     0.8  

Computers

     0.8  

Electronic Components — Misc.

     0.8  

Building Products — Doors & Windows

     0.8  

Hazardous Waste Disposal

     0.8  

Electronic Connectors

     0.8  

Commercial Services — Finance

     0.7  

Food — Wholesale/Distribution

     0.7  

Transport — Rail

     0.7  

Building & Construction Products — Misc.

     0.7  

Retail — Apparel/Shoe

     0.7  

Machinery — Material Handling

     0.7  

Hotels/Motels

     0.7  

Batteries/Battery Systems

     0.6  

Power Converter/Supply Equipment

     0.6  

Repurchase Agreements

     0.6  

Medical — Hospitals

     0.6  

Savings & Loans/Thrifts

     0.6  

Semiconductor Equipment

     0.6  

Machine Tools & Related Products

     0.6  

E-Commerce/Products

     0.6  

Cellular Telecom

     0.5  

Oil Refining & Marketing

     0.5  

Disposable Medical Products

     0.5  

E-Commerce/Services

     0.5  

Medical — HMO

     0.5  

Semiconductor Components — Integrated Circuits

     0.5  

Cruise Lines

     0.5  

Industrial Automated/Robotic

     0.4  

Building — Residential/Commercial

     0.4  

Office Supplies & Forms

     0.4  

Entertainment Software

     0.4  

Metal — Aluminum

     0.4  

Home Decoration Products

     0.4  

Beverages — Non-alcoholic

     0.4

Web Hosting/Design

     0.4  

Containers — Paper/Plastic

     0.4  

Office Automation & Equipment

     0.4  

Building Products — Cement

     0.4  

Lasers — System/Components

     0.4  

Computers — Memory Devices

     0.3  

Television

     0.3  

Applications Software

     0.3  

Investment Management/Advisor Services

     0.3  

Transport — Truck

     0.3  

Building Products — Wood

     0.3  

Shipbuilding

     0.3  

Consulting Services

     0.3  

Building — Heavy Construction

     0.3  

Oil — Field Services

     0.3  

Rubber — Tires

     0.3  

Capacitors

     0.3  

Medical — Drugs

     0.3  

Independent Power Producers

     0.3  

Auto — Heavy Duty Trucks

     0.3  

Retail — Discount

     0.3  

Toys

     0.3  

Medical Instruments

     0.3  

Finance — Leasing Companies

     0.2  

Telecom Equipment — Fiber Optics

     0.2  

Aerospace/Defense

     0.2  

Cable/Satellite TV

     0.2  

Banks — Fiduciary

     0.2  

Dialysis Centers

     0.2  

Metal Processors & Fabrication

     0.2  

Food — Meat Products

     0.2  

Engines — Internal Combustion

     0.2  

Containers — Metal/Glass

     0.2  

Rubber/Plastic Products

     0.2  

Advertising Agencies

     0.1  

Retail — Major Department Stores

     0.1  

Commercial Services

     0.1  
    


       100.1
    


 

*

Calculated as a percentage of net assets

 

 

63


Table of Contents

VALIC Company II Mid Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS — 98.1%

 

Advertising Agencies — 0.1%

 

Omnicom Group, Inc.#

     15,092      $ 1,142,464  
             


Aerospace/Defense — 0.2%

 

Spirit AeroSystems Holdings, Inc., Class A

     16,209        1,601,449  
             


Aerospace/Defense - Equipment — 2.5%

 

Curtiss-Wright Corp.

     25,011        3,083,606  

Harris Corp.

     72,879        12,019,934  

Moog, Inc., Class A

     43,869        4,121,931  
             


                19,225,471  
             


Agricultural Chemicals — 0.9%

 

Mosaic Co.

     99,362        3,107,050  

Nutrien, Ltd.

     71,574        3,896,488  
             


                7,003,538  
             


Airlines — 1.4%

 

Delta Air Lines, Inc.

     65,351        3,240,103  

JetBlue Airways Corp.†

     216,945        3,622,982  

Southwest Airlines Co.

     67,486        3,781,915  
             


                10,645,000  
             


Applications Software — 0.3%

 

CDK Global, Inc.

     41,291        2,395,291  
             


Auto - Heavy Duty Trucks — 0.3%

 

PACCAR, Inc.

     28,948        1,962,674  
             


Auto/Truck Parts & Equipment - Original — 1.0%

 

BorgWarner, Inc.

     39,879        1,619,486  

Lear Corp.

     15,439        2,347,809  

WABCO Holdings, Inc.†

     24,891        3,423,259  
             


                7,390,554  
             


Banks - Commercial — 4.8%

 

BancorpSouth Bank

     95,671        3,117,918  

Bank OZK#

     82,679        2,711,871  

East West Bancorp, Inc.

     88,406        4,827,852  

First Midwest Bancorp, Inc.

     144,126        3,336,517  

IBERIABANK Corp.

     59,544        4,658,127  

Pinnacle Financial Partners, Inc.

     29,459        1,728,949  

Regions Financial Corp.

     230,807        3,785,235  

South State Corp.

     43,080        3,060,403  

Western Alliance Bancorp†

     81,695        3,780,027  

Zions Bancorporation#

     114,488        5,850,337  
             


                36,857,236  
             


Banks - Fiduciary — 0.2%

 

State Street Corp.

     20,429        1,468,232  
             


Banks - Super Regional — 3.3%

 

Comerica, Inc.

     69,548        6,058,326  

Fifth Third Bancorp

     163,636        4,513,081  

Huntington Bancshares, Inc.

     387,780        5,587,910  

KeyCorp

     168,689        2,979,048  

SunTrust Banks, Inc.

     89,490        5,805,216  
             


                24,943,581  
             


Batteries/Battery Systems — 0.6%

 

EnerSys

     65,625        4,844,437  
             


Beverages - Non-alcoholic — 0.4%

 

Coca-Cola European Partners PLC

     61,918        2,918,815  
             


Building & Construction Products - Misc. — 0.7%

 

Fortune Brands Home & Security, Inc.

     79,233        3,733,459  

Owens Corning

     33,795        1,687,384  
             


                5,420,843  
             


Security Description    Shares          
Value
(Note 2)
 

                   

Building Products - Cement — 0.4%

 

Buzzi Unicem SpA#

     139,822      $ 2,735,496  
             


Building Products - Doors & Windows — 0.8%

 

JELD-WEN Holding, Inc.†#

     113,685        2,297,574  

Sanwa Holdings Corp.

     330,626        3,829,347  
             


                6,126,921  
             


Building Products - Wood — 0.3%

 

Masco Corp.

     60,712        2,280,343  
             


Building - Heavy Construction — 0.3%

 

Granite Construction, Inc.

     47,545        2,213,695  
             


Building - Residential/Commercial — 0.4%

 

Lennar Corp., Class A

     70,146        3,365,605  
             


Cable/Satellite TV — 0.2%

 

Liberty Global PLC, Class C†

     59,626        1,513,904  
             


Capacitors — 0.3%

 

KEMET Corp.

     107,567        2,038,395  
             


Cellular Telecom — 0.5%

 

Millicom International Cellular SA SDR

     69,138        4,162,054  
             


Chemicals - Diversified — 2.1%

 

Celanese Corp.

     58,648        5,999,104  

FMC Corp.

     112,519        10,070,450  
             


                16,069,554  
             


Chemicals - Specialty — 0.9%

 

Cabot Corp.

     95,860        4,493,917  

Versum Materials, Inc.

     51,436        2,520,364  
             


                7,014,281  
             


Commercial Services — 0.1%

 

Atento SA†

     243,822        970,412  
             


Commercial Services - Finance — 0.7%

 

Global Payments, Inc.

     26,659        3,475,800  

Moody’s Corp.

     12,307        2,130,588  
             


                5,606,388  
             


Computer Services — 2.2%

 

Amdocs, Ltd.

     103,845        5,770,667  

Cognizant Technology Solutions Corp., Class A

     13,744        975,549  

Leidos Holdings, Inc.

     150,989        9,752,379  
             


                16,498,595  
             


Computer Software — 0.8%

 

SS&C Technologies Holdings, Inc.

     103,772        6,390,280  
             


Computers — 0.8%

 

Hewlett Packard Enterprise Co.

     132,726        2,174,052  

HP, Inc.

     212,305        4,188,778  
             


                6,362,830  
             


Computers - Memory Devices — 0.3%

 

NetApp, Inc.

     24,699        1,610,375  

Western Digital Corp.

     17,704        890,511  
             


                2,500,886  
             


Consulting Services — 0.3%

 

Booz Allen Hamilton Holding Corp.

     42,121        2,226,516  
             


Containers - Metal/Glass — 0.2%

 

Crown Holdings, Inc.†

     21,285        1,155,563  
             


Containers - Paper/Plastic — 0.4%

 

Berry Global Group, Inc.†

     20,804        1,091,586  
 

 

64


Table of Contents

VALIC Company II Mid Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Containers - Paper/Plastic (continued)

 

Graphic Packaging Holding Co.#

     137,785      $ 1,678,221  
             


                2,769,807  
             


Cruise Lines — 0.5%

 

Norwegian Cruise Line Holdings, Ltd.†

     61,889        3,436,696  
             


Data Processing/Management — 1.0%

 

Fidelity National Information Services, Inc.

     47,175        5,101,976  

First Data Corp., Class A†

     97,349        2,447,354  
             


                7,549,330  
             


Dialysis Centers — 0.2%

 

DaVita, Inc.†

     25,078        1,426,938  
             


Disposable Medical Products — 0.5%

 

STERIS PLC

     34,275        4,145,904  
             


Distribution/Wholesale — 0.8%

 

HD Supply Holdings, Inc.†

     70,950        3,051,559  

KAR Auction Services, Inc.

     47,412        2,235,476  

WESCO International, Inc.†

     21,513        1,171,383  
             


                6,458,418  
             


Diversified Manufacturing Operations — 1.7%

 

Eaton Corp. PLC

     46,452        3,705,476  

ITT, Inc.

     43,228        2,496,849  

Parker-Hannifin Corp.

     31,766        5,595,898  

Textron, Inc.

     23,032        1,250,638  
             


                13,048,861  
             


E-Commerce/Products — 0.6%

 

eBay, Inc.

     115,677        4,297,401  
             


E-Commerce/Services — 0.5%

 

Expedia Group, Inc.

     31,614        3,898,322  
             


Electric Products - Misc. — 0.9%

 

AMETEK, Inc.

     83,698        6,660,687  
             


Electric - Integrated — 4.9%

 

Alliant Energy Corp.

     151,227        6,936,783  

American Electric Power Co., Inc.

     21,300        1,728,495  

DTE Energy Co.

     36,855        4,553,804  

Edison International

     27,219        1,630,146  

Entergy Corp.

     45,903        4,284,127  

Evergy, Inc.

     83,779        4,684,084  

Pinnacle West Capital Corp.

     74,206        6,956,070  

Xcel Energy, Inc.

     120,613        6,616,829  
             


                37,390,338  
             


Electronic Components - Misc. — 0.8%

 

Flex, Ltd.†

     126,981        1,338,380  

Gentex Corp.

     53,586        1,089,939  

Sensata Technologies Holding PLC†

     73,205        3,713,690  
             


                6,142,009  
             


Electronic Components - Semiconductors — 0.9%

 

Qorvo, Inc.†

     40,826        2,863,536  

Silicon Motion Technology Corp. ADR

     97,441        4,002,876  
             


                6,866,412  
             


Electronic Connectors — 0.8%

 

TE Connectivity, Ltd.

     72,518        5,953,003  
             


Electronic Measurement Instruments — 0.9%

 

Itron, Inc.†

     74,425        3,945,269  

Keysight Technologies, Inc.†

     30,323        2,559,565  
             


                6,504,834  
             


Security Description    Shares          
Value
(Note 2)
 

                   

Electronic Parts Distribution — 1.4%

 

Arrow Electronics, Inc.†

     132,108      $ 10,529,008  
             


Engines - Internal Combustion — 0.2%

 

Cummins, Inc.

     8,341        1,285,265  
             


Entertainment Software — 0.4%

 

Activision Blizzard, Inc.

     34,244        1,443,042  

NetEase, Inc. ADR

     7,995        1,784,644  
             


                3,227,686  
             


Finance - Consumer Loans — 1.1%

 

Navient Corp.

     107,763        1,316,864  

SLM Corp.

     528,196        5,836,566  

Synchrony Financial

     46,058        1,501,951  
             


                8,655,381  
             


Finance - Credit Card — 1.5%

 

Alliance Data Systems Corp.

     11,496        1,988,808  

Discover Financial Services

     135,382        9,694,705  
             


                11,683,513  
             


Finance - Investment Banker/Broker — 1.3%

 

E*TRADE Financial Corp.

     78,478        3,844,637  

TD Ameritrade Holding Corp.

     113,671        6,403,088  
             


                10,247,725  
             


Finance - Leasing Companies — 0.2%

 

Air Lease Corp.

     45,853        1,713,068  
             


Food - Meat Products — 0.2%

 

Tyson Foods, Inc., Class A

     21,200        1,307,192  
             


Food - Misc./Diversified — 0.9%

 

Ingredion, Inc.

     19,045        1,760,710  

Nomad Foods, Ltd.†

     124,994        2,512,380  

Post Holdings, Inc.†

     27,766        2,828,800  
             


                7,101,890  
             


Food - Wholesale/Distribution — 0.7%

 

US Foods Holding Corp.†

     156,456        5,513,509  
             


Gas - Distribution — 1.0%

 

UGI Corp.

     143,225        7,863,052  
             


Hazardous Waste Disposal — 0.8%

 

Clean Harbors, Inc.†

     88,757        6,035,476  
             


Home Decoration Products — 0.4%

 

Newell Brands, Inc.#

     181,556        2,946,654  
             


Hotels/Motels — 0.7%

 

Wyndham Destinations, Inc.

     43,011        1,936,786  

Wyndham Hotels & Resorts, Inc.

     59,211        3,112,722  
             


                5,049,508  
             


Human Resources — 0.8%

 

ManpowerGroup, Inc.

     23,534        1,982,739  

Robert Half International, Inc.

     64,520        4,399,619  
             


                6,382,358  
             


Independent Power Producers — 0.3%

 

Vistra Energy Corp.†

     75,931        1,977,243  
             


Industrial Automated/Robotic — 0.4%

 

Ichor Holdings, Ltd.†#

     163,155        3,421,360  
             


Insurance Brokers — 1.2%

 

Aon PLC

     38,556        6,613,511  

Marsh & McLennan Cos., Inc.

     26,663        2,480,192  
             


                9,093,703  
             


 

 

65


Table of Contents

VALIC Company II Mid Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Insurance - Life/Health — 1.7%

 

Aflac, Inc.

     30,141      $ 1,481,129  

CNO Financial Group, Inc.

     292,047        4,973,560  

Torchmark Corp.

     19,828        1,637,000  

Unum Group

     120,331        4,495,566  
             


                12,587,255  
             


Insurance - Multi-line — 1.5%

 

Allstate Corp.

     43,898        4,143,093  

Assurant, Inc.

     48,714        5,017,055  

Loews Corp.

     45,395        2,161,710  
             


                11,321,858  
             


Insurance - Property/Casualty — 3.3%

 

Alleghany Corp.†

     12,638        8,125,728  

Hanover Insurance Group, Inc.

     44,809        5,319,276  

Lancashire Holdings, Ltd.

     525,448        4,617,147  

Travelers Cos., Inc.

     19,758        2,626,036  

WR Berkley Corp.

     49,853        4,170,702  
             


                24,858,889  
             


Insurance - Reinsurance — 2.1%

 

Everest Re Group, Ltd.

     18,259        4,128,542  

Reinsurance Group of America, Inc.

     84,161        12,160,423  
             


                16,288,965  
             


Investment Management/Advisor Services — 0.3%

 

Raymond James Financial, Inc.

     27,918        2,305,468  
             


Lasers - System/Components — 0.4%

 

Coherent, Inc.†#

     20,524        2,731,334  
             


Machine Tools & Related Products — 0.6%

 

Milacron Holdings Corp.†

     307,323        4,299,449  
             


Machinery - Material Handling — 0.7%

 

Dover Corp.

     56,481        5,113,225  
             


Medical Instruments — 0.3%

 

Boston Scientific Corp.†

     48,127        1,930,855  
             


Medical Labs & Testing Services — 1.4%

 

ICON PLC†

     24,693        3,456,526  

IQVIA Holdings, Inc.†

     27,149        3,803,575  

Laboratory Corp. of America Holdings†

     22,109        3,277,438  
             


                10,537,539  
             


Medical Products — 1.4%

 

Henry Schein, Inc.†

     23,551        1,396,574  

Hill-Rom Holdings, Inc.

     55,937        5,932,119  

Zimmer Biomet Holdings, Inc.

     26,571        3,297,993  
             


                10,626,686  
             


Medical - Drugs — 0.3%

 

Jazz Pharmaceuticals PLC†

     14,502        2,030,715  
             


Medical - HMO — 0.5%

 

Centene Corp.†

     50,608        3,081,521  

Humana, Inc.

     2,606        742,814  
             


                3,824,335  
             


Medical - Hospitals — 0.6%

 

Acadia Healthcare Co., Inc.†#

     62,852        1,652,379  

Universal Health Services, Inc., Class B

     21,075        2,925,842  
             


                4,578,221  
             


Medical - Wholesale Drug Distribution — 0.9%

 

AmerisourceBergen Corp.

     32,580        2,713,914  

McKesson Corp.

     30,772        3,912,968  
             


                6,626,882  
             


Security Description    Shares          
Value
(Note 2)
 

                   

Metal Processors & Fabrication — 0.2%

 

Timken Co.

     32,775      $ 1,422,107  
             


Metal - Aluminum — 0.4%

 

Alcoa Corp.†

     106,460        3,140,570  
             


Office Automation & Equipment — 0.4%

 

Xerox Corp.

     88,649        2,739,254  
             


Office Supplies & Forms — 0.4%

 

Avery Dennison Corp.

     30,267        3,270,047  
             


Oil Companies - Exploration & Production — 4.8%

 

Canadian Natural Resources, Ltd.

     53,540        1,520,536  

Cimarex Energy Co.

     46,996        3,379,482  

Diamondback Energy, Inc.

     130,560        13,438,541  

Encana Corp.

     696,466        5,049,379  

Laredo Petroleum, Inc.†

     310,973        1,066,637  

Noble Energy, Inc.

     130,162        2,883,088  

Pioneer Natural Resources Co.

     27,048        3,812,416  

Viper Energy Partners LP

     74,524        2,452,585  

WPX Energy, Inc.†

     219,836        2,712,776  
             


                36,315,440  
             


Oil Refining & Marketing — 0.5%

 

Delek US Holdings, Inc.

     52,799        1,868,029  

Marathon Petroleum Corp.

     36,916        2,289,161  
             


                4,157,190  
             


Oil - Field Services — 0.3%

 

Apergy Corp.†

     51,449        2,159,829  
             


Power Converter/Supply Equipment — 0.6%

 

Hubbell, Inc.

     39,381        4,648,927  
             


Real Estate Investment Trusts — 10.1%

 

American Assets Trust, Inc.

     45,241        1,965,269  

American Homes 4 Rent, Class A

     66,611        1,454,784  

Boston Properties, Inc.

     51,831        6,877,456  

Brixmor Property Group, Inc.

     298,468        5,211,251  

Corporate Office Properties Trust

     181,474        4,716,509  

Douglas Emmett, Inc.

     108,782        4,198,985  

Duke Realty Corp.

     118,966        3,517,825  

Equity LifeStyle Properties, Inc.

     28,550        3,101,672  

Equity Residential

     67,684        4,987,634  

Kilroy Realty Corp.

     25,538        1,882,406  

Life Storage, Inc.

     31,678        3,091,773  

Park Hotels & Resorts, Inc.

     162,079        5,063,348  

Physicians Realty Trust

     279,464        5,049,915  

Prologis, Inc.

     45,972        3,220,798  

PS Business Parks, Inc.

     30,025        4,418,779  

Regency Centers Corp.

     61,789        4,031,732  

Retail Properties of America, Inc., Class A

     124,823        1,555,295  

SL Green Realty Corp.

     60,328        5,472,956  

STORE Capital Corp.

     220,196        7,149,764  
             


                76,968,151  
             


Retail - Apparel/Shoe — 0.7%

 

Caleres, Inc.

     102,765        3,195,992  

Ross Stores, Inc.

     21,840        2,071,087  
             


                5,267,079  
             


Retail - Discount — 0.3%

 

Dollar Tree, Inc.†

     20,315        1,956,944  
             


Retail - Major Department Stores — 0.1%

 

Nordstrom, Inc.#

     22,937        1,084,461  
             


Rubber - Tires — 0.3%

 

Goodyear Tire & Rubber Co.

     107,430        2,124,965  
             


 

 

66


Table of Contents

VALIC Company II Mid Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Rubber/Plastic Products — 0.2%

 

Trinseo SA

     22,935      $ 1,151,108  
             


Savings & Loans/Thrifts — 0.6%

 

Sterling Bancorp

     218,830        4,448,814  
             


Semiconductor Components - Integrated Circuits — 0.5%

 

Marvell Technology Group, Ltd.

     184,684        3,684,446  
             


Semiconductor Equipment — 0.6%

 

Axcelis Technologies, Inc.†

     124,553        2,618,104  

KLA-Tencor Corp.

     15,103        1,744,246  
             


                4,362,350  
             


Shipbuilding — 0.3%

 

Huntington Ingalls Industries, Inc.

     10,711        2,242,990  
             


Steel - Producers — 1.4%

 

Carpenter Technology Corp.

     65,389        3,069,360  

Commercial Metals Co.

     137,088        2,268,806  

Reliance Steel & Aluminum Co.

     59,806        5,337,686  
             


                10,675,852  
             


Telecom Equipment - Fiber Optics — 0.2%

 

Acacia Communications, Inc.†

     30,321        1,617,625  
             


Television — 0.3%

 

TEGNA, Inc.

     187,306        2,466,820  
             


Toys — 0.3%

 

Hasbro, Inc.#

     23,004        1,953,040  
             


Transport - Rail — 0.7%

 

Genesee & Wyoming, Inc., Class A†

     66,188        5,427,416  
             


Transport - Truck — 0.3%

 

Knight-Swift Transportation Holdings, Inc.#

     67,840        2,281,459  
             


Web Hosting/Design — 0.4%

 

VeriSign, Inc.†

     16,080        2,862,884  
             


Total Long-Term Investment Securities

                 

(cost $691,869,184)

              745,725,298  
      


SHORT-TERM INVESTMENT SECURITIES — 1.4%

 

Registered Investment Companies — 1.4%

 

State Street Institutional Liquid Reserves Fund, Administration Class 
2.10%(3)

     9,527,130        9,528,082  
Security Description    Shares/
Principal
Amount
        
Value
(Note 2)
 

                  

Registered Investment Companies (continued)

                

State Street Navigator Securities Lending Government Money Market Portfolio
2.43%(1)(3)

     1,417,878     $ 1,417,878  
            


Total Short-Term Investment Securities

                

(cost $10,945,960)

             10,945,960  
     


REPURCHASE AGREEMENTS — 0.6%

 

Agreement with Fixed Income Clearing Corp., bearing interest at 0.50%, dated 02/28/2019, to be repurchased 03/01/2019 in the amount of $4,623,064 collateralized by $4,840,000 of United States Treasury Notes, bearing interest at 1.88% due 01/31/2022 and having an approximate value of $4,764,070
(cost $4,623,000)

   $ 4,623,000       4,623,000  
            


TOTAL INVESTMENTS

                

(cost $707,438,144)(2)

     100.1     761,294,258  

Liabilities in excess of other assets

     (0.1     (798,650
    


 


NET ASSETS

     100.0   $ 760,495,608  
    


 



#

The security or a portion thereof is out on loan (see Note 2)

Non-income producing security

(1)

At February 28, 2019, the Fund had loaned securities with a total value of $19,769,233. This was secured by collateral of $1,417,878, which was received in cash and subsequently invested in short-term investments currently value at $1,417,878 as reported in the portfolio of investments. The remaining collateral of $19,084,895 was received in the form of short-term 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, 2019


 

United States Treasury Bills

  0.00%   03/07/2019 to 06/20/2019   $ 879,749  

United States Treasury Notes/Bonds

  zero coupon to 8.75%   03/15/2019 to 11/15/2048     18,205,146  

 

(2)

See Note 5 for cost of investments on a tax basis.

(3)

The rate shown is the 7-day yield as of February 28, 2019.

 

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, 2019 (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

   $ 745,725,298      $ —        $         —        $ 745,725,298  

Short-Term Investment Securities

     10,945,960        —          —          10,945,960  

Repurchase Agreements

     —          4,623,000        —          4,623,000  
    


  


  


  


Total Investments at Value

   $ 756,671,258      $ 4,623,000      $ —        $ 761,294,258  
    


  


  


  



*

For a detailed presentation of investments, please refer to the Portfolio of Investments.

 

See Notes to Financial Statements

 

67


Table of Contents

VALIC Company II Moderate Growth Lifestyle Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Domestic Equity Investment Companies

     48.2

Domestic Fixed Income Investment Companies

     35.4  

International Equity Investment Companies

     10.1  

International Fixed Income Investment Companies

     3.4  

Real Estate Investment Companies

     2.9  
    


       100.0
    


 

*

Calculated as a percentage of net assets

 

 

68


Table of Contents

VALIC Company II Moderate Growth Lifestyle Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Shares      Value
(Note 2)
 

AFFILIATED REGISTERED INVESTMENT COMPANIES#(1) — 100.0%

 

Domestic Equity Investment Companies — 48.2%

 

VALIC Co. I Blue Chip Growth Fund

     344,842      $ 7,534,798  

VALIC Co. I Dividend Value Fund

     3,787,660        48,671,436  

VALIC Co. I Large Cap Core Fund

     766,716        9,254,257  

VALIC Co. I Large Capital Growth Fund

     416,753        6,876,418  

VALIC Co. I Mid Cap Index Fund

     1,029,369        28,606,161  

VALIC Co. I Mid Cap Strategic Growth Fund

     645,314        10,847,731  

VALIC Co. I Nasdaq-100 Index Fund

     1,915,724        27,375,700  

VALIC Co. I Science & Technology Fund

     1,260,457        40,284,221  

VALIC Co. I Small Cap Index Fund

     330,822        7,337,639  

VALIC Co. I Small Cap Special Values Fund

     1,049,218        14,269,368  

VALIC Co. I Stock Index Fund

     2,067,714        85,024,393  

VALIC Co. I Value Fund

     1,030,982        18,702,012  

VALIC Co. II Capital Appreciation Fund

     1,322,330        25,401,965  

VALIC Co. II Large Cap Value Fund

     2,416,653        52,199,695  

VALIC Co. II Mid Cap Growth Fund

     1,040,371        10,715,826  

VALIC Co. II Mid Cap Value Fund

     1,264,399        26,413,288  

VALIC Co. II Small Cap Growth Fund

     388,733        8,497,706  

VALIC Co. II Small Cap Value Fund

     1,380,220        19,612,932  
             


Total Domestic Equity Investment Companies

                 

(cost $415,660,953)

              447,625,546  
             


Domestic Fixed Income Investment Companies — 35.4%

 

VALIC Co. I Capital Conservation Fund

     3,080,448        30,095,982  

VALIC Co. I Government Securities Fund

     1,215,480        12,713,924  

VALIC Co. I Inflation Protected Fund

     3,529,464        38,647,634  

VALIC Co. II Core Bond Fund

     7,180,115        78,478,652  

VALIC Co. II High Yield Bond Fund

     6,300,162        48,385,242  

VALIC Co. II Strategic Bond Fund

     10,856,150        120,611,828  
             


Total Domestic Fixed Income Investment Companies

                 

(cost $327,436,265)

              328,933,262  
             


Security Description    Shares     Value
(Note 2)
 

                  

International Equity Investment Companies — 10.1%

 

VALIC Co. I Emerging Economies Fund

     3,605,328     $ 29,671,852  

VALIC Co. I Foreign Value Fund

     2,620,576       25,838,881  

VALIC Co. I International Equities Index Fund

     1,480,885       10,469,855  

VALIC Co. I International Growth Fund

     429,157       6,192,730  

VALIC Co. II International Opportunities Fund

     1,114,280       21,360,751  
            


Total International Equity Investment Companies

                

(cost $93,875,446)

             93,534,069  
            


International Fixed Income Investment Companies — 3.4%

 

VALIC Co. I International Government Bond Fund

                

(cost $31,942,701)

     2,716,853       32,004,531  
            


Real Estate Investment Companies — 2.9%

 

VALIC Co. I Global Real Estate Fund

                

(cost $26,347,106)

     3,344,659       26,790,719  
            


TOTAL INVESTMENTS

                

(cost $895,262,471)(2)

     100.0     928,888,127  

Liabilities in excess of other assets

     (0.0     (138,789
    


 


NET ASSETS

     100.0   $ 928,749,338  
    


 



#

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 of 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, 2019 (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

   $ 928,888,127      $         —        $         —        $ 928,888,127  
    


  


  


  



*

For a detailed presentation of investments, please refer to the Portfolio of Investments.

 

See Notes to Financial Statements

 

69


Table of Contents

VALIC Company II Small Cap Growth Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Medical — Biomedical/Gene

     9.2

Medical — Drugs

     6.0  

Enterprise Software/Service

     4.7  

Computer Software

     3.3  

Electronic Components — Semiconductors

     2.8  

Semiconductor Equipment

     2.7  

Internet Application Software

     2.6  

Distribution/Wholesale

     2.6  

Retail — Automobile

     2.2  

Building & Construction Products — Misc.

     2.2  

Applications Software

     2.0  

Medical Products

     1.9  

Internet Security

     1.9  

Schools

     1.8  

Registered Investment Companies

     1.8  

Non-Hazardous Waste Disposal

     1.8  

Retail — Discount

     1.7  

Food — Wholesale/Distribution

     1.7  

Footwear & Related Apparel

     1.6  

Banks — Commercial

     1.5  

Retail — Vision Service Center

     1.5  

Medical Labs & Testing Services

     1.5  

Casino Hotels

     1.4  

Television

     1.4  

Medical — Outpatient/Home Medical

     1.3  

Finance — Investment Banker/Broker

     1.3  

Diversified Manufacturing Operations

     1.2  

Building Products — Air & Heating

     1.2  

E-Commerce/Products

     1.2  

Transport — Truck

     1.1  

Miscellaneous Manufacturing

     1.1  

Internet Telephone

     1.0  

Retail — Restaurants

     1.0  

Machinery — General Industrial

     1.0  

Telecom Equipment — Fiber Optics

     1.0  

Medical Instruments

     1.0  

Steel Pipe & Tube

     1.0  

Recreational Centers

     1.0  

Real Estate Investment Trusts

     1.0  

Electric Products — Misc.

     1.0  

Patient Monitoring Equipment

     1.0  

Gambling (Non-Hotel)

     1.0  

Publishing — Newspapers

     1.0  

Advanced Materials

     0.9  

Chemicals — Specialty

     0.9  

Drug Delivery Systems

     0.9  

Web Hosting/Design

     0.9  

Telecommunication Equipment

     0.9  

Retail — Pet Food & Supplies

     0.8  

Retail — Misc./Diversified

     0.8  

Machinery — Pumps

     0.8  

Machinery — Construction & Mining

     0.8  

Entertainment Software

     0.8  

Aerospace/Defense — Equipment

     0.8  

Therapeutics

     0.8  

Aerospace/Defense

     0.8  

Building — Mobile Home/Manufactured Housing

     0.6  

Educational Software

     0.6  

Transport — Marine

     0.6  

Real Estate Management/Services

     0.6  

Beverages — Non-alcoholic

     0.6  

Oil Companies — Exploration & Production

     0.5  

Investment Companies

     0.5  

Computer Services

     0.5  

Building — Residential/Commercial

     0.5  

Retail — Floor Coverings

     0.5  

Medical — Hospitals

     0.4  

Computers

     0.4  

Savings & Loans/Thrifts

     0.4  

E-Commerce/Services

     0.4  

Diagnostic Equipment

     0.2  
    


       100.4
    


 

*

Calculated as a percentage of net assets

 

 

70


Table of Contents

VALIC Company II Small Cap Growth Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS — 98.6%

 

Advanced Materials — 0.9%

 

Hexcel Corp.

     26,101      $ 1,882,926  
             


Aerospace/Defense — 0.8%

 

MSA Safety, Inc.

     15,090        1,560,155  
             


Aerospace/Defense - Equipment — 0.8%

 

HEICO Corp.

     17,409        1,631,746  
             


Applications Software — 2.0%

 

HubSpot, Inc.†

     13,717        2,309,668  

Smartsheet, Inc., Class A†#

     45,765        1,750,054  
             


                4,059,722  
             


Banks - Commercial — 1.5%

 

First Financial Bankshares, Inc.

     9,377        608,098  

Signature Bank

     10,297        1,397,921  

Webster Financial Corp.

     18,635        1,070,022  
             


                3,076,041  
             


Beverages - Non-alcoholic — 0.6%

 

Primo Water Corp.†

     74,368        1,090,979  
             


Building & Construction Products - Misc. — 2.2%

 

Simpson Manufacturing Co., Inc.

     17,151        1,027,859  

Trex Co., Inc.†

     44,129        3,307,469  
             


                4,335,328  
             


Building Products - Air & Heating — 1.2%

 

Lennox International, Inc.

     9,747        2,390,452  
             


Building - Mobile Home/Manufactured Housing — 0.6%

 

Winnebago Industries, Inc.#

     39,267        1,281,282  
             


Building - Residential/Commercial — 0.5%

 

TRI Pointe Group, Inc.†#

     72,448        912,845  
             


Casino Hotels — 1.4%

 

Boyd Gaming Corp.

     95,615        2,845,502  
             


Chemicals - Specialty — 0.9%

 

Ferro Corp.†

     95,819        1,857,930  
             


Computer Services — 0.5%

 

Elastic NV†

     10,601        960,027  
             


Computer Software — 3.3%

 

Cloudera, Inc.†

     142,934        2,082,548  

Envestnet, Inc.†

     62,775        3,829,903  

MongoDB, Inc.†#

     7,063        717,318  
             


                6,629,769  
             


Computers — 0.4%

 

Nutanix, Inc., Class A†

     17,214        862,249  
             


Diagnostic Equipment — 0.2%

 

GenMark Diagnostics, Inc.†#

     56,810        436,869  
             


Distribution/Wholesale — 2.6%

 

H&E Equipment Services, Inc.

     48,003        1,382,007  

Pool Corp.

     15,589        2,487,069  

SiteOne Landscape Supply, Inc.†#

     26,044        1,398,823  
             


                5,267,899  
             


Diversified Manufacturing Operations — 1.2%

 

ITT, Inc.

     42,266        2,441,284  
             


Drug Delivery Systems — 0.9%

 

Heron Therapeutics, Inc.†#

     28,872        764,242  

Revance Therapeutics, Inc.†

     62,447        1,057,852  
             


                1,822,094  
             


E-Commerce/Products — 1.2%

 

Etsy, Inc.†

     13,690        975,686  
Security Description    Shares          
Value
(Note 2)
 

                   

E-Commerce/Products (continued)

 

Farfetch, Ltd., Class A†

     57,541      $ 1,409,755  
             


                2,385,441  
             


E-Commerce/Services — 0.4%

 

GrubHub, Inc.†#

     9,126        744,499  
             


Educational Software — 0.6%

 

Instructure, Inc.†#

     25,241        1,179,512  
             


Electric Products - Misc. — 1.0%

 

Littelfuse, Inc.

     10,167        1,963,146  
             


Electronic Components - Semiconductors — 2.8%

 

Inphi Corp.†#

     69,378        2,998,517  

Monolithic Power Systems, Inc.

     18,906        2,535,484  
             


                5,534,001  
             


Enterprise Software/Service — 4.7%

 

Evolent Health, Inc., Class A†#

     96,820        1,277,056  

ManTech International Corp., Class A

     22,082        1,200,157  

New Relic, Inc.†

     8,122        858,901  

Paycom Software, Inc.†#

     10,726        1,949,236  

Pluralsight, Inc., Class A†#

     50,858        1,653,393  

SailPoint Technologies Holding, Inc.†

     77,765        2,398,273  
             


                9,337,016  
             


Entertainment Software — 0.8%

 

Glu Mobile, Inc.†

     182,647        1,640,170  
             


Finance - Investment Banker/Broker — 1.3%

 

Evercore, Inc., Class A

     27,608        2,542,697  
             


Food - Wholesale/Distribution — 1.7%

 

Performance Food Group Co.†

     86,698        3,340,474  
             


Footwear & Related Apparel — 1.6%

 

Wolverine World Wide, Inc.

     89,208        3,190,078  
             


Gambling (Non-Hotel) — 1.0%

 

Red Rock Resorts, Inc., Class A

     68,239        1,918,881  
             


Internet Application Software — 2.6%

 

Anaplan, Inc.†#

     40,483        1,518,517  

Okta, Inc.†

     18,443        1,565,442  

Zendesk, Inc.†

     28,051        2,216,590  
             


                5,300,549  
             


Internet Security — 1.9%

 

Proofpoint, Inc.†

     18,831        2,223,753  

Zscaler, Inc.†#

     30,385        1,509,527  
             


                3,733,280  
             


Internet Telephone — 1.0%

 

RingCentral, Inc., Class A†

     19,813        2,086,111  
             


Investment Companies — 0.5%

 

PennantPark Investment Corp.

     136,539        973,523  
             


Machinery - Construction & Mining — 0.8%

 

Oshkosh Corp.

     21,615        1,681,863  
             


Machinery - General Industrial — 1.0%

 

Applied Industrial Technologies, Inc.

     35,562        2,067,575  
             


Machinery - Pumps — 0.8%

 

Graco, Inc.

     35,859        1,683,939  
             


Medical Instruments — 1.0%

 

LivaNova PLC†

     16,976        1,582,163  

TransEnterix, Inc.†#

     170,747        425,160  
             


                2,007,323  
             


 

 

71


Table of Contents

VALIC Company II Small Cap Growth Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Medical Labs & Testing Services — 1.5%

 

Teladoc Health, Inc.†#

     46,206      $ 2,973,818  
             


Medical Products — 1.9%

 

iRhythm Technologies, Inc.†

     26,350        2,524,066  

Nevro Corp.†

     27,900        1,285,353  
             


                3,809,419  
             


Medical - Biomedical/Gene — 9.2%

 

ACADIA Pharmaceuticals, Inc.†#

     23,191        614,562  

Adverum Biotechnologies, Inc.†#

     139,507        565,003  

Atara Biotherapeutics, Inc.†#

     41,351        1,480,779  

Avrobio, Inc.†#

     41,143        685,442  

Biohaven Pharmaceutical Holding Co., Ltd.†#

     40,871        1,797,507  

Exact Sciences Corp.†#

     18,584        1,691,144  

FibroGen, Inc.†

     31,996        1,849,369  

Halozyme Therapeutics, Inc.†#

     120,344        2,075,934  

Homology Medicines, Inc.†#

     50,966        1,502,478  

Intercept Pharmaceuticals, Inc.†#

     7,451        743,163  

REGENXBIO, Inc.†#

     27,086        1,401,159  

Rubius Therapeutics, Inc.†

     25,131        399,080  

Sage Therapeutics, Inc.†#

     6,966        1,109,335  

Spark Therapeutics, Inc.†#

     14,753        1,671,515  

Twist Bioscience Corp.†#

     37,512        816,636  
             


                18,403,106  
             


Medical - Drugs — 6.0%

 

Array BioPharma, Inc.†#

     50,137        1,150,143  

Bellicum Pharmaceuticals, Inc.†

     95,512        306,594  

Clementia Pharmaceuticals, Inc.†

     70,624        1,824,218  

Coherus Biosciences, Inc.†#

     112,839        1,618,111  

Global Blood Therapeutics, Inc.†#

     9,812        515,130  

Horizon Pharma PLC†

     97,192        2,819,540  

Nektar Therapeutics†

     16,168        655,451  

Optinose, Inc.†#

     63,165        468,684  

TherapeuticsMD, Inc.†#

     274,346        1,569,259  

Tricida, Inc.†#

     42,908        992,462  
             


                11,919,592  
             


Medical - Hospitals — 0.4%

 

Acadia Healthcare Co., Inc.†#

     33,151        871,540  
             


Medical - Outpatient/Home Medical — 1.3%

 

Amedisys, Inc.†

     20,888        2,596,378  
             


Miscellaneous Manufacturing — 1.1%

 

John Bean Technologies Corp.

     22,608        2,118,370  
             


Non-Hazardous Waste Disposal — 1.8%

 

Advanced Disposal Services, Inc.†

     134,485        3,566,542  
             


Oil Companies - Exploration & Production — 0.5%

 

Centennial Resource Development, Inc., Class A†#

     109,553        993,646  
             


Patient Monitoring Equipment — 1.0%

 

Insulet Corp.†#

     20,785        1,951,919  
             


Publishing - Newspapers — 1.0%

 

New York Times Co., Class A#

     58,292        1,914,892  
             


Real Estate Investment Trusts — 1.0%

 

CubeSmart

     31,697        971,196  

Highwoods Properties, Inc.

     22,025        1,019,978  
             


                1,991,174  
             


Real Estate Management/Services — 0.6%

 

RE/MAX Holdings, Inc., Class A

     28,331        1,111,425  
             


Recreational Centers — 1.0%

 

Planet Fitness, Inc., Class A†

     34,048        2,001,341  
             


Security Description    Shares    

Value
(Note 2)

 

                  

Retail - Automobile — 2.2%

 

Lithia Motors, Inc., Class A#

     20,607     $ 1,860,194  

Rush Enterprises, Inc., Class A

     62,627       2,625,324  
            


               4,485,518  
            


Retail - Discount — 1.7%

 

Ollie’s Bargain Outlet Holdings, Inc.†

     39,295       3,466,605  
            


Retail - Floor Coverings — 0.5%

 

Floor & Decor Holdings, Inc., Class A†#

     24,051       894,216  
            


Retail - Misc./Diversified — 0.8%

 

Hudson, Ltd., Class A†

     113,460       1,690,554  
            


Retail - Pet Food & Supplies — 0.8%

 

Freshpet, Inc.†

     41,052       1,692,163  
            


Retail - Restaurants — 1.0%

 

Texas Roadhouse, Inc.

     32,845       2,079,417  
            


Retail - Vision Service Center — 1.5%

 

National Vision Holdings, Inc.†

     91,184       3,063,782  
            


Savings & Loans/Thrifts — 0.4%

 

Axos Financial, Inc.†

     26,215       846,220  
            


Schools — 1.8%

 

2U, Inc.†#

     19,062       1,404,869  

Bright Horizons Family Solutions, Inc.†

     18,431       2,285,444  
            


               3,690,313  
            


Semiconductor Equipment — 2.7%

 

Entegris, Inc.#

     87,620       3,095,615  

MKS Instruments, Inc.

     28,673       2,376,131  
            


               5,471,746  
            


Steel Pipe & Tube — 1.0%

 

Advanced Drainage Systems, Inc.

     78,921       2,006,172  
            


Telecom Equipment - Fiber Optics — 1.0%

 

Ciena Corp.†

     47,771       2,037,911  
            


Telecommunication Equipment — 0.9%

 

Quantenna Communications, Inc.†

     99,258       1,801,533  
            


Television — 1.4%

 

World Wrestling Entertainment, Inc., Class A#

     32,287       2,702,422  
            


Therapeutics — 0.8%

 

G1 Therapeutics, Inc.†#

     31,647       584,204  

Portola Pharmaceuticals, Inc.†#

     31,968       981,737  
            


               1,565,941  
            


Transport - Marine — 0.6%

 

Kirby Corp.†

     15,262       1,132,746  
            


Transport - Truck — 1.1%

 

Saia, Inc.†

     34,332       2,271,405  
            


Web Hosting/Design — 0.9%

 

Wix.com, Ltd.†

     16,553       1,808,415  
            


Total Long-Term Investment Securities

                

(cost $173,094,654)

             197,585,418  
     


SHORT-TERM INVESTMENT SECURITIES — 1.8%

 

Registered Investment Companies — 1.8%

 

State Street Navigator Securities Lending Government Money Market Portfolio
2.43%(1)(2)
(cost $3,650,424)

     3,650,424       3,650,424  
            


TOTAL INVESTMENTS

                

(cost $176,745,078)(3)

     100.4     201,235,842  

Liabilities in excess of other assets

     (0.4     (752,914
    


 


NET ASSETS

     100.0   $ 200,482,928  
    


 


 

 

72


Table of Contents

VALIC Company II Small Cap Growth Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 


Non-income producing security

#

The security or a portion thereof is out on loan (see Note 2).

(1)

At February 28, 2019, the Fund had loaned securities with a total value of $42,011,720. This was secured by collateral of $3,650,424, which was received in cash and subsequently invested in short-term investments currently valued at $3,650,424 as reported in the Portfolio of Investments. Additional collateral of $39,918,823 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, 2019


 

Federal Home Loan Mtg. Corp.

  3.00% to 3.50%   12/15/2040 to 12/01/2047   $ 365,799  

Federal National Mtg. Assoc.

  3.00% to 4.50%   07/25/2041 to 05/01/2048     247,772  

Government National Mtg. Assoc.

  2.50% to 5.00%   05/20/2046 to 08/20/2048     201,231  

United States Treasury Bills

  0.00%   03/07/2019 to 06/20/2019     760,931  

United States Treasury Notes/Bonds

  zero coupon to 8.75%   03/15/2019 to 11/15/2048     38,343,090  

 

(2)

The rate shown is the 7-day yield as of February 28, 2019.

(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, 2019 (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

   $ 197,585,418      $         —        $         —        $ 197,585,418  

Short-Term Investment Securities

     3,650,424        —          —          3,650,424  
    


  


  


  


Total Investments at Value

   $ 201,235,842      $ —        $ —        $ 201,235,842  
    


  


  


  



*

For a detailed presentation of investments, please refer to the Portfolio of Investments.

 

See Notes to Financial Statements

 

73


Table of Contents

VALIC Company II Small Cap Value Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Banks — Commercial

     15.1

Real Estate Investment Trusts

     12.6  

Savings & Loans/Thrifts

     3.4  

Repurchase Agreements

     2.8  

Electronic Components — Semiconductors

     2.2  

Auto/Truck Parts & Equipment — Original

     1.9  

Gas — Distribution

     1.8  

Oil — Field Services

     1.7  

Coal

     1.6  

Electric — Integrated

     1.6  

Consulting Services

     1.6  

Insurance — Life/Health

     1.5  

Electronic Components — Misc.

     1.5  

Computer Services

     1.4  

Registered Investment Companies

     1.3  

Electronic Parts Distribution

     1.3  

Medical — Biomedical/Gene

     1.2  

Building — Residential/Commercial

     1.2  

Transport — Truck

     1.2  

Medical — HMO

     1.1  

Financial Guarantee Insurance

     1.1  

Independent Power Producers

     1.1  

Retail — Apparel/Shoe

     1.1  

Oil Companies — Exploration & Production

     1.1  

Electric — Distribution

     1.1  

Insurance — Property/Casualty

     1.1  

Medical — Drugs

     1.1  

Building & Construction — Misc.

     1.1  

Distribution/Wholesale

     1.0  

Paper & Related Products

     1.0  

Human Resources

     0.9  

Energy — Alternate Sources

     0.9  

Consumer Products — Misc.

     0.8  

Diversified Manufacturing Operations

     0.8  

Engineering/R&D Services

     0.8  

E-Commerce/Services

     0.8  

Office Supplies & Forms

     0.8  

Investment Management/Advisor Services

     0.7  

Retail — Restaurants

     0.7  

Enterprise Software/Service

     0.7  

Oil Refining & Marketing

     0.7  

Schools

     0.7  

Rubber/Plastic Products

     0.6  

Dental Supplies & Equipment

     0.6  

Insurance — Reinsurance

     0.6  

Semiconductor Components — Integrated Circuits

     0.6  

Semiconductor Equipment

     0.6  

Retail — Office Supplies

     0.6  

Retail — Misc./Diversified

     0.6  

Publishing — Newspapers

     0.5  

Aerospace/Defense — Equipment

     0.5  

Networking Products

     0.5  

Medical — Generic Drugs

     0.5  

Building — Maintenance & Services

     0.5  

Auto — Truck Trailers

     0.5  

Metal Processors & Fabrication

     0.4  

Retail — Sporting Goods

     0.4  

Cosmetics & Toiletries

     0.4  

Food — Misc./Diversified

     0.4  

Television

     0.4  

Printing — Commercial

     0.4  

Medical — Wholesale Drug Distribution

     0.4  

Building — Heavy Construction

     0.4  

Airlines

     0.3  

Transport — Marine

     0.3  

Telecom Equipment — Fiber Optics

     0.3  

Retail — Bookstores

     0.3  

Apparel Manufacturers

     0.3  

Building & Construction Products — Misc.

     0.3  

Racetracks

     0.3  

Transactional Software

     0.3  

Metal Products — Distribution

     0.3  

Retail — Drug Store

     0.3  

Commercial Services — Finance

     0.3  

Finance — Investment Banker/Broker

     0.3  

Computers — Integrated Systems

     0.3  

Food — Wholesale/Distribution

     0.3  

Audio/Video Products

     0.3  

Finance — Mortgage Loan/Banker

     0.2  

Retail — Discount

     0.2  

Building Products — Wood

     0.2  

Publishing — Books

     0.2  

Communications Software

     0.2  

Electric — Generation

     0.2  

Machinery — Farming

     0.2  

Retail — Automobile

     0.2  

Auto/Truck Parts & Equipment — Replacement

     0.2  

Machinery — General Industrial

     0.2  

Computers — Other

     0.2  

Chemicals — Specialty

     0.2  

E-Services/Consulting

     0.2  

Electronic Measurement Instruments

     0.2  

Medical Information Systems

     0.2  

Dialysis Centers

     0.2  

Wireless Equipment

     0.2  

Rental Auto/Equipment

     0.2  

Oil & Gas Drilling

     0.2  

Retail — Jewelry

     0.2  

Water

     0.2  

Finance — Consumer Loans

     0.2  

Medical — Hospitals

     0.2  

Computer Software

     0.1  

Data Processing/Management

     0.1  

Transport — Services

     0.1  

Industrial Automated/Robotic

     0.1  

Steel — Producers

     0.1  

Broadcast Services/Program

     0.1  

Telephone — Integrated

     0.1  

Telecommunication Equipment

     0.1  

Capacitors

     0.1  

Retail — Appliances

     0.1  

Multimedia

     0.1  

Telecom Services

     0.1  

Power Converter/Supply Equipment

     0.1  

Banks — Mortgage

     0.1  

Travel Services

     0.1  

E-Marketing/Info

     0.1  

Internet Content — Entertainment

     0.1  

Medical Instruments

     0.1  

Machinery — Pumps

     0.1  

Linen Supply & Related Items

     0.1  

Oil Field Machinery & Equipment

     0.1  

Insurance — Multi-line

     0.1  

Medical Labs & Testing Services

     0.1  

Commercial Services

     0.1  

Metal — Iron

     0.1  

Tobacco

     0.1  

Cable/Satellite TV

     0.1  

Retirement/Aged Care

     0.1  

Machine Tools & Related Products

     0.1  

Machinery — Construction & Mining

     0.1  

Home Furnishings

     0.1  

Appliances

     0.1  

Containers — Paper/Plastic

     0.1  

Finance — Commercial

     0.1  

Disposable Medical Products

     0.1  

Hotels/Motels

     0.1  
    


       101.2
    


 

*

Calculated as a percentage of net assets

 

 

74


Table of Contents

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS — 97.1%

 

Aerospace/Defense - Equipment — 0.5%

 

Moog, Inc., Class A

     21,600      $ 2,029,536  
             


Airlines — 0.3%

 

SkyWest, Inc.

     25,000        1,351,000  
             


Apparel Manufacturers — 0.3%

 

Deckers Outdoor Corp.†

     8,400        1,242,780  
             


Appliances — 0.1%

 

Hamilton Beach Brands Holding Co., Class A#

     10,200        247,554  
             


Audio/Video Products — 0.3%

 

Sonos, Inc.†

     96,100        992,713  
             


Auto - Truck Trailers — 0.5%

 

Wabash National Corp.

     128,300        1,903,972  
             


Auto/Truck Parts & Equipment - Original — 1.9%

 

American Axle & Manufacturing Holdings, Inc.†#

     27,400        441,140  

Cooper - Standard Holdings, Inc.†

     14,600        877,606  

Dana, Inc.

     53,600        1,058,600  

Meritor, Inc.†

     63,900        1,423,692  

Methode Electronics, Inc.

     9,300        260,958  

Modine Manufacturing Co.†

     4,900        73,647  

Tenneco, Inc., Class A

     83,000        2,871,800  

Tower International, Inc.

     14,100        361,665  
             


                7,369,108  
             


Auto/Truck Parts & Equipment - Replacement — 0.2%

 

Douglas Dynamics, Inc.

     18,900        797,202  
             


Banks - Commercial — 15.1%

 

1st Source Corp.

     14,920        709,446  

Allegiance Bancshares, Inc.†

     4,000        153,040  

American National Bankshares, Inc.

     800        28,640  

BancFirst Corp.

     15,680        884,038  

Bancorp, Inc.†

     75,100        681,157  

BancorpSouth Bank

     9,700        316,123  

Bank of Commerce Holdings

     3,000        34,050  

Bank of Marin Bancorp

     1,000        44,500  

Banner Corp.

     23,900        1,484,907  

Bryn Mawr Bank Corp.

     3,900        158,964  

Cadence BanCorp

     2,100        41,979  

Cathay General Bancorp

     32,390        1,258,028  

CenterState Bank Corp.

     7,113        188,210  

Central Pacific Financial Corp.

     56,000        1,634,080  

Central Valley Community Bancorp

     6,100        118,767  

Century Bancorp, Inc., Class A

     518        40,067  

Chemung Financial Corp.

     700        32,606  

Citizens & Northern Corp.

     2,400        62,976  

City Holding Co.

     18,100        1,450,534  

Columbia Banking System, Inc.

     38,300        1,450,804  

Community Bank System, Inc.#

     16,980        1,100,134  

Community Trust Bancorp, Inc.

     20,418        873,482  

ConnectOne Bancorp, Inc.

     27,900        601,803  

Customers Bancorp, Inc.†

     62,200        1,330,458  

East West Bancorp, Inc.

     6,373        348,030  

Enterprise Financial Services Corp.

     26,500        1,197,270  

Farmers National Banc Corp.

     11,100        163,392  

Fidelity Southern Corp.

     30,500        993,690  

Financial Institutions, Inc.

     26,100        786,654  

First Bancorp, Inc./North Carolina

     8,600        337,034  

First BanCorp./Puerto Rico

     339,700        3,909,947  

First Business Financial Services, Inc.

     6,800        150,008  
Security Description    Shares          
Value
(Note 2)
 

                   

Banks - Commercial (continued)

 

First Citizens BancShares, Inc., Class A

     1,740      $ 759,649  

First Commonwealth Financial Corp.

     163,800        2,303,028  

First Community Bancshares, Inc.

     7,500        268,875  

First Financial Bancorp

     8,200        227,386  

First Financial Corp.

     12,300        545,874  

First Hawaiian, Inc.

     18,000        485,280  

First Interstate BancSystem, Inc., Class A

     12,370        515,087  

First Midwest Bancorp, Inc.

     11,000        254,650  

Franklin Financial Network, Inc.#

     1,900        62,320  

Fulton Financial Corp.

     21,500        369,370  

Glacier Bancorp, Inc.

     26,500        1,161,230  

Great Southern Bancorp, Inc.

     11,800        668,234  

Great Western Bancorp, Inc.

     12,800        480,640  

Hancock Whitney Corp.

     48,721        2,128,133  

Hanmi Financial Corp.

     52,000        1,200,160  

Heartland Financial USA, Inc.

     10,100        490,759  

Heritage Commerce Corp.

     6,700        93,599  

Hilltop Holdings, Inc.

     49,400        949,468  

HomeStreet, Inc.†

     8,000        223,200  

Hope Bancorp, Inc.

     80,227        1,169,710  

IBERIABANK Corp.

     26,100        2,041,803  

Independent Bank Corp./Michigan

     23,900        555,675  

Lakeland Financial Corp.

     5,170        249,814  

MB Financial, Inc.

     2,100        95,067  

Mercantile Bank Corp.

     2,400        83,112  

Midland States Bancorp, Inc.

     3,700        94,350  

Northrim BanCorp, Inc.

     3,100        116,281  

OFG Bancorp

     60,500        1,251,745  

Old Second Bancorp, Inc.

     12,400        177,072  

Pacific Mercantile Bancorp†

     11,700        96,525  

PacWest Bancorp

     5,835        239,352  

Peoples Bancorp, Inc.

     9,700        323,398  

Preferred Bank

     2,200        112,684  

Premier Financial Bancorp, Inc.

     2,325        38,525  

Republic Bancorp, Inc., Class A

     5,200        235,248  

S&T Bancorp, Inc.

     2,780        115,036  

Shore Bancshares, Inc.

     2,900        45,675  

Sierra Bancorp

     4,200        113,190  

Simmons First National Corp., Class A

     4,478        120,145  

South State Corp.

     21,870        1,553,645  

Stock Yards Bancorp, Inc.

     2,350        83,707  

Tompkins Financial Corp.

     2,748        220,967  

Towne Bank

     2,500        68,925  

TriCo Bancshares

     26,700        1,073,874  

TriState Capital Holdings, Inc.†

     6,200        140,182  

TrustCo Bank Corp.

     29,000        245,630  

Trustmark Corp.

     48,200        1,710,136  

UMB Financial Corp.

     27,860        1,917,047  

Umpqua Holdings Corp.

     112,114        2,038,232  

Union Bankshares Corp.

     13,000        462,410  

United Community Banks, Inc.

     55,400        1,534,026  

Veritex Holdings, Inc.

     22,622        633,642  

Washington Trust Bancorp, Inc.

     4,780        250,472  

Webster Financial Corp.

     14,000        803,880  

West Bancorporation, Inc.

     4,830        111,670  

Westamerica Bancorporation

     39,424        2,534,175  

Wintrust Financial Corp.

     19,700        1,451,299  
             


                59,860,086  
             


 

 

75


Table of Contents

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)(continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Banks - Mortgage — 0.1%

 

Walker & Dunlop, Inc.

     8,500      $ 474,300  
             


Broadcast Services/Program — 0.1%

 

Hemisphere Media Group, Inc.†

     37,500        521,250  
             


Building & Construction Products - Misc. — 0.3%

 

Armstrong Flooring, Inc.†

     17,700        253,818  

Louisiana-Pacific Corp.

     38,200        965,314  
             


                1,219,132  
             


Building & Construction - Misc. — 1.1%

 

EMCOR Group, Inc.

     47,998        3,462,096  

MYR Group, Inc.†

     21,600        724,464  
             


                4,186,560  
             


Building Products - Doors & Windows — 0.0%

 

Masonite International Corp.†

     2,300        127,535  
             


Building Products - Wood — 0.2%

 

Boise Cascade Co.

     32,000        892,480  

Universal Forest Products, Inc.

     800        24,776  
             


                917,256  
             


Building - Heavy Construction — 0.4%

 

Sterling Construction Co., Inc.†

     36,100        527,421  

Tutor Perini Corp.†#

     46,100        867,602  
             


                1,395,023  
             


Building - Maintenance & Services — 0.5%

 

ABM Industries, Inc.

     53,800        1,918,508  
             


Building - Residential/Commercial — 1.2%

 

Hovnanian Enterprises, Inc., Class A†#

     76,071        51,508  

KB Home

     156,700        3,574,327  

Taylor Morrison Home Corp., Class A†

     16,500        276,705  

TRI Pointe Group, Inc.†#

     60,700        764,820  
             


                4,667,360  
             


Cable/Satellite TV — 0.1%

 

Liberty Latin America, Ltd., Class A†

     7,200        141,264  

WideOpenWest, Inc.†

     18,000        147,960  
             


                289,224  
             


Capacitors — 0.1%

 

KEMET Corp.

     26,600        504,070  
             


Chemicals - Diversified — 0.0%

 

AdvanSix, Inc.†

     5,800        189,950  
             


Chemicals - Fibers — 0.0%

 

Rayonier Advanced Materials, Inc.#

     3,400        47,906  
             


Chemicals - Specialty — 0.2%

 

Minerals Technologies, Inc.

     7,460        441,632  

Stepan Co.

     2,300        216,430  

Valhi, Inc.#

     27,900        112,995  
             


                771,057  
             


Coal — 1.6%

 

Arch Coal, Inc., Class A#

     32,300        3,009,068  

NACCO Industries, Inc., Class A

     7,200        263,304  

Peabody Energy Corp.

     47,000        1,449,950  

Ramaco Resources, Inc.†

     19,600        104,468  

SunCoke Energy, Inc.†

     29,900        296,608  

Warrior Met Coal, Inc.

     45,800        1,341,024  
             


                6,464,422  
             


Security Description    Shares          
Value
(Note 2)
 

                   

Commercial Services — 0.1%

 

Acacia Research Corp.†

     114,272      $ 348,530  
             


Commercial Services - Finance — 0.3%

 

CBIZ, Inc.†

     22,700        468,301  

EVERTEC, Inc.

     4,100        117,342  

Green Dot Corp., Class A†

     2,300        148,465  

Travelport Worldwide, Ltd.

     22,400        352,128  
             


                1,086,236  
             


Communications Software — 0.2%

 

Avaya Holdings Corp.†

     54,900        850,401  
             


Computer Services — 1.4%

 

CACI International, Inc., Class A†

     2,300        419,198  

Insight Enterprises, Inc.†

     28,900        1,613,198  

Perspecta, Inc.

     76,300        1,609,930  

Unisys Corp.†#

     111,350        1,504,338  

Virtusa Corp.†

     7,200        363,384  
             


                5,510,048  
             


Computer Software — 0.1%

 

TiVo Corp.

     55,300        554,659  
             


Computers - Integrated Systems — 0.3%

 

NetScout Systems, Inc.†

     38,400        1,051,008  
             


Computers - Other — 0.2%

 

Lumentum Holdings, Inc.†

     15,600        776,100  
             


Consulting Services — 1.6%

 

CRA International, Inc.

     7,600        379,696  

FTI Consulting, Inc.†

     21,500        1,594,440  

Huron Consulting Group, Inc.†

     23,200        1,063,024  

Kelly Services, Inc., Class A

     35,000        844,550  

Navigant Consulting, Inc.

     78,200        1,610,138  

Vectrus, Inc.†

     32,000        862,720  
             


                6,354,568  
             


Consumer Products - Misc. — 0.8%

 

Central Garden & Pet Co., Class A†

     47,700        1,328,445  

Helen of Troy, Ltd.†

     17,500        1,961,925  
             


                3,290,370  
             


Containers - Paper/Plastic — 0.1%

 

Graphic Packaging Holding Co.

     18,310        223,016  
             


Cosmetics & Toiletries — 0.4%

 

Edgewell Personal Care Co.†

     38,400        1,703,424  
             


Data Processing/Management — 0.1%

 

Fair Isaac Corp.†

     2,220        550,160  
             


Dental Supplies & Equipment — 0.6%

 

Patterson Cos., Inc.#

     108,800        2,453,440  
             


Dialysis Centers — 0.2%

 

American Renal Associates Holdings, Inc.†

     54,800        684,452  
             


Disposable Medical Products — 0.1%

 

CONMED Corp.

     2,500        192,250  
             


Distribution/Wholesale — 1.0%

 

Anixter International, Inc.†

     3,400        199,512  

Core-Mark Holding Co., Inc.

     52,000        1,638,520  

Fossil Group, Inc.†#

     33,500        523,940  

Nexeo Solutions, Inc.†#

     13,800        137,034  

Titan Machinery, Inc.†

     46,700        897,107  
 

 

76


Table of Contents

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)(continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Distribution/Wholesale (continued)

 

Veritiv Corp.†

     23,100      $ 667,359  
             


                4,063,472  
             


Diversified Manufacturing Operations — 0.8%

 

EnPro Industries, Inc.

     2,600        178,334  

Fabrinet†

     48,200        2,819,700  

Harsco Corp.†

     12,800        286,464  
             


                3,284,498  
             


E-Commerce/Services — 0.8%

 

Liberty Expedia Holdings, Inc., Class A†

     72,300        3,202,890  
             


E-Marketing/Info — 0.1%

 

New Media Investment Group, Inc.

     33,900        451,548  
             


E-Services/Consulting — 0.2%

 

Perficient, Inc.†

     26,900        769,609  
             


Electric Products - Misc. — 0.0%

 

Graham Corp.

     6,900        156,285  
             


Electric - Distribution — 1.1%

 

Portland General Electric Co.

     72,100        3,615,094  

Spark Energy, Inc., Class A#

     38,500        384,615  

Unitil Corp.

     5,900        323,969  
             


                4,323,678  
             


Electric - Generation — 0.2%

 

Atlantic Power Corp.†#

     298,700        803,503  
             


Electric - Integrated — 1.6%

 

Avista Corp.#

     30,980        1,251,902  

El Paso Electric Co.

     40,500        2,178,900  

IDACORP, Inc.

     12,100        1,190,761  

MGE Energy, Inc.

     3,900        249,288  

NorthWestern Corp.

     21,318        1,461,135  

PNM Resources, Inc.

     1,200        52,416  
             


                6,384,402  
             


Electronic Components - Misc. — 1.5%

 

Bel Fuse, Inc., Class B

     24,700        603,915  

Benchmark Electronics, Inc.

     66,621        1,825,415  

Comtech Telecommunications Corp.

     4,400        116,600  

Kimball Electronics, Inc.†

     19,300        299,150  

OSI Systems, Inc.†

     9,100        790,335  

Sanmina Corp.†

     56,400        1,801,416  

Vishay Intertechnology, Inc.

     10,400        227,968  

Vishay Precision Group, Inc.†

     2,400        83,664  
             


                5,748,463  
             


Electronic Components - Semiconductors — 2.2%

 

Alpha & Omega Semiconductor, Ltd.†

     47,800        514,328  

Amkor Technology, Inc.†

     157,100        1,379,338  

Photronics, Inc.†

     36,100        354,141  

Electronic Components - Semiconductors (continued)

 

Rambus, Inc.†

     287,600        2,953,652  

Synaptics, Inc.†#

     34,500        1,444,515  

Xperi Corp.

     78,800        1,891,200  
             


                8,537,174  
             


Electronic Measurement Instruments — 0.2%

 

Stoneridge, Inc.†

     25,600        756,992  
             


Security Description    Shares          
Value
(Note 2)
 

                   

Electronic Parts Distribution — 1.3%

 

Tech Data Corp.†

     49,950      $ 5,105,889  
             


Energy - Alternate Sources — 0.9%

 

FutureFuel Corp.

     34,000        626,960  

Renewable Energy Group, Inc.†#

     61,900        1,644,683  

REX American Resources Corp.†

     13,800        1,099,998  
             


                3,371,641  
             


Engineering/R&D Services — 0.8%

 

Argan, Inc.

     4,400        204,600  

KBR, Inc.

     116,100        2,294,136  

VSE Corp.

     20,500        724,675  
             


                3,223,411  
             


Enterprise Software/Service — 0.7%

 

Donnelley Financial Solutions, Inc.†

     22,600        321,146  

MicroStrategy, Inc., Class A†

     13,000        1,839,500  

Progress Software Corp.

     4,300        158,154  

Verint Systems, Inc.†

     6,600        351,450  
             


                2,670,250  
             


Finance - Commercial — 0.1%

 

Marlin Business Services Corp.

     9,100        214,214  
             


Finance - Consumer Loans — 0.2%

 

Nelnet, Inc., Class A

     11,300        619,466  
             


Finance - Investment Banker/Broker — 0.3%

 

Arlington Asset Investment Corp., Class A#

     5,400        44,766  

GAIN Capital Holdings, Inc.#

     48,800        336,720  

Houlihan Lokey, Inc.

     3,900        179,322  

Oppenheimer Holdings, Inc., Class A

     12,300        347,106  

Piper Jaffray Cos.

     2,200        153,912  
             


                1,061,826  
             


Finance - Mortgage Loan/Banker — 0.2%

 

PennyMac Financial Services, Inc.

     41,900        977,108  
             


Finance - Other Services — 0.0%

 

BGC Partners, Inc., Class A

     30,200        185,126  
             


Financial Guarantee Insurance — 1.1%

 

MBIA, Inc.†

     147,700        1,466,661  

MGIC Investment Corp.†

     119,800        1,555,004  

Radian Group, Inc.

     71,300        1,451,668  
             


                4,473,333  
             


Food - Dairy Products — 0.0%

 

Dean Foods Co.#

     35,800        143,558  
             


Food - Misc./Diversified — 0.4%

 

Darling Ingredients, Inc.†

     68,200        1,499,036  
             


Food - Wholesale/Distribution — 0.3%

 

Fresh Del Monte Produce, Inc.

     10,250        283,720  

SpartanNash Co.

     40,300        764,894  
             


                1,048,614  
             


Footwear & Related Apparel — 0.0%

 

Weyco Group, Inc.

     800        24,256  
             


Gas - Distribution — 1.8%

 

New Jersey Resources Corp.

     24,300        1,176,120  

Northwest Natural Holding Co.

     27,900        1,791,738  

Southwest Gas Holdings, Inc.

     33,640        2,756,462  
 

 

77


Table of Contents

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)(continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Gas - Distribution (continued)

 

Spire, Inc.

     17,600      $ 1,396,032  
             


                7,120,352  
             


Home Furnishings — 0.1%

 

Hooker Furniture Corp.

     8,400        263,760  
             


Hotels/Motels — 0.1%

 

Red Lion Hotels Corp.†

     23,900        190,722  
             


Housewares — 0.0%

 

Lifetime Brands, Inc.

     17,500        183,050  
             


Human Resources — 0.9%

 

Barrett Business Services, Inc.

     14,000        1,099,560  

Cross Country Healthcare, Inc.†

     71,400        624,036  

Heidrick & Struggles International, Inc.

     6,600        284,526  

Korn Ferry

     3,800        185,402  

TrueBlue, Inc.†

     55,000        1,266,100  
             


                3,459,624  
             


Independent Power Producers — 1.1%

 

Clearway Energy, Inc., Class A

     99,000        1,461,240  

Clearway Energy, Inc., Class C

     107,700        1,614,423  

Vistra Energy Corp.†

     52,529        1,367,855  
             


                4,443,518  
             


Industrial Automated/Robotic — 0.1%

 

Hurco Cos., Inc.

     12,500        536,000  
             


Insurance - Life/Health — 1.5%

 

American Equity Investment Life Holding Co.

     98,700        3,123,855  

CNO Financial Group, Inc.

     153,509        2,614,258  

Primerica, Inc.

     1,400        175,056  
             


                5,913,169  
             


Insurance - Multi-line — 0.1%

 

Horace Mann Educators Corp.

     9,380        367,602  
             


Insurance - Property/Casualty — 1.1%

 

Ambac Financial Group, Inc.†

     33,800        668,226  

FedNat Holding Co.

     12,100        220,825  

First American Financial Corp.

     13,900        705,981  

Hallmark Financial Services, Inc.†

     9,100        95,095  

Heritage Insurance Holdings, Inc.#

     81,200        1,211,504  

National General Holdings Corp.

     3,500        90,335  

ProAssurance Corp.

     15,980        648,788  

Stewart Information Services Corp.

     14,600        626,778  
             


                4,267,532  
             


Insurance - Reinsurance — 0.6%

 

Argo Group International Holdings, Ltd.

     9,375        651,656  

Essent Group, Ltd.†

     15,600        672,984  

Global Indemnity, Ltd.

     1,400        54,012  

Third Point Reinsurance, Ltd.†

     91,400        977,066  
             


                2,355,718  
             


Internet Content - Entertainment — 0.1%

 

Limelight Networks, Inc.†

     142,900        417,268  
             


Investment Management/Advisor Services — 0.7%

 

Associated Capital Group, Inc., Class A#

     1,400        59,542  

Boston Private Financial Holdings, Inc.

     59,800        711,022  

Stifel Financial Corp.

     28,700        1,562,141  

Virtus Investment Partners, Inc.#

     4,800        491,088  
             


                2,823,793  
             


Security Description    Shares          
Value
(Note 2)
 

   

Linen Supply & Related Items — 0.1%

 

UniFirst Corp.

     2,600      $ 373,932  
             


Machine Tools & Related Products — 0.1%

 

Milacron Holdings Corp.†

     20,000        279,800  
             


Machinery - Construction & Mining — 0.1%

 

Hyster-Yale Materials Handling, Inc.

     4,000        270,640  
             


Machinery - Electrical — 0.0%

 

Bloom Energy Corp. Class A†#

     1,800        26,046  
             


Machinery - Farming — 0.2%

 

AGCO Corp.

     11,860        801,499  
             


Machinery - General Industrial — 0.2%

 

Applied Industrial Technologies, Inc.

     1,000        58,140  

DXP Enterprises, Inc.†

     20,300        718,011  
             


                776,151  
             


Machinery - Pumps — 0.1%

 

SPX FLOW, Inc.†

     12,000        414,240  
             


Medical Imaging Systems — 0.0%

 

Lantheus Holdings, Inc.†

     4,200        95,970  
             


Medical Information Systems — 0.2%

 

Allscripts Healthcare Solutions, Inc.†

     63,400        679,648  

NantHealth, Inc.†#

     31,267        21,418  
             


                701,066  
             


Medical Instruments — 0.1%

 

AngioDynamics, Inc.†

     18,500        414,585  
             


Medical Labs & Testing Services — 0.1%

 

SI-BONE, Inc.†

     17,600        364,672  
             


Medical Products — 0.0%

 

FONAR Corp.†

     8,700        188,355  
             


Medical - Biomedical/Gene — 1.2%

 

Acceleron Pharma, Inc.†#

     7,200        317,088  

Acorda Therapeutics, Inc.†

     9,600        141,504  

AMAG Pharmaceuticals, Inc.†#

     7,100        105,719  

Arbutus Biopharma Corp.†

     64,900        284,911  

Arcus Biosciences, Inc.†

     41,365        487,694  

BioCryst Pharmaceuticals, Inc.†#

     43,900        362,614  

Epizyme, Inc.†

     37,400        484,704  

Fate Therapeutics, Inc.†#

     21,700        340,907  

Five Prime Therapeutics, Inc.†#

     20,100        232,758  

Iovance Biotherapeutics, Inc.†#

     36,000        369,720  

Karyopharm Therapeutics, Inc.†#

     32,300        133,399  

Medicines Co.†#

     26,400        651,288  

Scholar Rock Holding Corp.†#

     24,300        452,466  

Tocagen, Inc.†#

     39,935        436,090  
             


                4,800,862  
             


Medical - Drugs — 1.1%

 

Corvus Pharmaceuticals, Inc.†#

     16,700        80,828  

Enanta Pharmaceuticals, Inc.†

     4,400        451,176  

Intra-Cellular Therapies, Inc.†

     16,500        224,730  

Kala Pharmaceuticals, Inc.†

     41,000        343,990  

Lannett Co., Inc.†

     100,100        941,941  

Mallinckrodt PLC†#

     30,200        753,792  

Minerva Neurosciences, Inc.†

     48,800        386,984  

Prestige Consumer Healthcare, Inc.†#

     20,200        591,052  

Spero Therapeutics, Inc.†#

     23,400        276,120  
 

 

78


Table of Contents

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)(continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Medical - Drugs (continued)

 

Zogenix, Inc.†#

     3,800      $ 200,374  
             


                4,250,987  
             


Medical - Generic Drugs — 0.5%

 

Endo International PLC†

     178,500        1,961,715  
             


Medical - HMO — 1.1%

 

Magellan Health, Inc.†

     10,900        742,399  

Molina Healthcare, Inc.†

     2,600        350,038  

Triple-S Management Corp., Class B†

     113,520        2,887,949  

WellCare Health Plans, Inc.†

     2,100        532,518  
             


                4,512,904  
             


Medical - Hospitals — 0.2%

 

Community Health Systems, Inc.†#

     120,200        594,990  
             


Medical - Outpatient/Home Medical — 0.0%

 

Civitas Solutions, Inc.†

     5,600        99,456  
             


Medical - Wholesale Drug Distribution — 0.4%

 

Owens & Minor, Inc.#

     234,550        1,463,592  
             


Metal Processors & Fabrication — 0.4%

 

Global Brass & Copper Holdings, Inc.

     48,200        1,626,750  

LB Foster Co., Class A†

     7,300        126,363  
             


                1,753,113  
             


Metal Products - Distribution — 0.3%

 

Worthington Industries, Inc.

     29,140        1,145,493  
             


Metal - Iron — 0.1%

 

Cleveland-Cliffs, Inc.#

     27,700        307,193  
             


Multimedia — 0.1%

 

Entravision Communications Corp., Class A

     125,600        496,120  
             


Networking Products — 0.5%

 

Infinera Corp.†

     166,800        852,348  

NeoPhotonics Corp.†

     36,200        289,600  

NETGEAR, Inc.†

     23,800        853,230  
             


                1,995,178  
             


Office Furnishings - Original — 0.0%

 

Kimball International, Inc., Class B

     6,900        108,261  
             


Office Supplies & Forms — 0.8%

 

ACCO Brands Corp.

     322,400        2,998,320  
             


Oil & Gas Drilling — 0.2%

 

Diamond Offshore Drilling, Inc.†#

     15,700        149,935  

Noble Corp. PLC†

     161,400        485,814  
             


                635,749  
             


Oil Companies - Exploration & Production — 1.1%

 

Abraxas Petroleum Corp.†

     148,000        185,000  

Denbury Resources, Inc.†#

     419,700        805,824  

EP Energy Corp., Class A†#

     78,028        41,753  

Gulfport Energy Corp.†

     9,300        71,238  

Midstates Petroleum Co., Inc.†

     84,600        730,944  

Southwestern Energy Co.†#

     197,000        833,310  

Unit Corp.†

     22,700        352,985  

W&T Offshore, Inc.†#

     265,700        1,384,297  
             


                4,405,351  
             


Security Description    Shares          
Value
(Note 2)
 

   

Oil Field Machinery & Equipment — 0.1%

 

Exterran Corp.†

     18,300      $ 312,381  

Natural Gas Services Group, Inc.†

     3,100        57,288  
             


                369,669  
             


Oil Refining & Marketing — 0.7%

 

CVR Energy, Inc.#

     32,300        1,309,442  

Delek US Holdings, Inc.

     36,800        1,301,984  
             


                2,611,426  
             


Oil - Field Services — 1.7%

 

FTS International, Inc.†

     113,300        1,165,857  

Matrix Service Co.†

     82,900        1,731,781  

McDermott International, Inc.†#

     49,133        416,648  

MRC Global, Inc.†#

     105,000        1,770,300  

Nine Energy Service, Inc.†

     32,000        839,040  

NOW, Inc.†

     63,600        917,748  
             


                6,841,374  
             


Paper & Related Products — 1.0%

 

Domtar Corp.

     12,340        628,229  

Schweitzer-Mauduit International, Inc.

     61,100        2,356,016  

Verso Corp., Class A†

     40,600        797,790  
             


                3,782,035  
             


Poultry — 0.0%

 

Sanderson Farms, Inc.#

     1,000        115,200  
             


Power Converter/Supply Equipment — 0.1%

 

Powell Industries, Inc.

     14,900        478,141  
             


Printing - Commercial — 0.4%

 

Ennis, Inc.

     10,400        220,480  

LSC Communications, Inc.

     73,700        623,502  

Quad/Graphics, Inc.#

     39,300        573,387  

RR Donnelley & Sons Co.

     12,600        67,788  
             


                1,485,157  
             


Publishing - Books — 0.2%

 

Houghton Mifflin Harcourt Co.†

     68,500        541,835  

Tribune Publishing Co.†

     29,100        350,946  
             


                892,781  
             


Publishing - Newspapers — 0.5%

 

Gannett Co., Inc.#

     178,800        2,099,112  
             


Racetracks — 0.3%

 

Penn National Gaming, Inc.†

     48,026        1,193,446  
             


Radio — 0.0%

 

Beasley Broadcast Group, Inc., Class A

     7,000        28,770  
             


Real Estate Investment Trusts — 12.6%

 

AG Mtg. Investment Trust, Inc.

     49,900        887,222  

Alexander & Baldwin, Inc.†

     24,875        570,384  

American Assets Trust, Inc.

     29,600        1,285,824  

Armada Hoffler Properties, Inc.

     53,600        820,080  

ARMOUR Residential REIT, Inc.

     14,700        294,735  

Ashford Hospitality Trust, Inc.

     220,880        1,183,917  

Braemar Hotels & Resorts, Inc.

     76,800        999,936  

Capstead Mtg. Corp.

     100,000        830,000  

CBL & Associates Properties, Inc.#

     31,040        66,426  
 

 

79


Table of Contents

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)(continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Real Estate Investment Trusts (continued)

 

Cedar Realty Trust, Inc.

     47,900      $ 166,692  

Cherry Hill Mtg. Investment Corp.#

     37,500        695,250  

City Office REIT, Inc.

     10,400        114,400  

CoreCivic, Inc.

     97,000        2,054,460  

CorEnergy Infrastructure Trust, Inc.#

     9,608        350,308  

CorePoint Lodging, Inc.

     57,700        806,069  

CoreSite Realty Corp.

     13,800        1,411,050  

Cousins Properties, Inc.

     242,760        2,311,075  

DiamondRock Hospitality Co.

     237,334        2,537,100  

Dynex Capital, Inc.

     70,700        431,270  

Easterly Government Properties, Inc.

     34,000        611,320  

First Industrial Realty Trust, Inc.

     28,200        945,264  

Franklin Street Properties Corp.

     41,300        299,012  

GEO Group, Inc.

     178,950        4,065,744  

Getty Realty Corp.

     35,846        1,181,126  

Gladstone Commercial Corp.

     9,100        187,824  

Global Medical REIT, Inc.

     15,400        158,620  

Hersha Hospitality Trust

     7,700        145,145  

Highwoods Properties, Inc.

     12,300        569,613  

Hospitality Properties Trust

     19,840        537,069  

Hudson Pacific Properties, Inc.

     5,700        189,354  

Industrial Logistics Properties Trust

     4,574        95,414  

InfraREIT, Inc.†

     23,900        510,265  

Invesco Mtg. Capital, Inc.

     111,200        1,770,304  

Jernigan Capital, Inc.

     10,100        216,645  

Kite Realty Group Trust

     33,900        533,586  

KKR Real Estate Finance Trust, Inc.

     30,100        613,137  

Mack-Cali Realty Corp.

     52,800        1,109,328  

New Senior Investment Group, Inc.

     99,600        513,936  

Office Properties Income Trust

     2,322        70,844  

Pebblebrook Hotel Trust

     96,893        3,101,545  

Pennsylvania Real Estate Investment Trust#

     39,080        240,342  

Piedmont Office Realty Trust, Inc., Class A

     28,300        579,301  

PotlatchDeltic Corp.#

     60,400        2,173,796  

Preferred Apartment Communities, Inc., Class A

     52,740        803,757  

PS Business Parks, Inc.

     5,300        780,001  

Redwood Trust, Inc.

     50,100        766,530  

RLJ Lodging Trust

     47,526        882,558  

Saul Centers, Inc.

     1,500        85,005  

STAG Industrial, Inc.

     8,700        240,816  

Sun Communities, Inc.

     3,900        442,923  

Sunstone Hotel Investors, Inc.

     125,572        1,889,858  

Tier REIT, Inc.

     8,800        213,400  

Two Harbors Investment Corp.

     85,405        1,184,567  

Urban Edge Properties

     62,400        1,211,808  

Urstadt Biddle Properties, Inc., Class A

     14,800        309,616  

Washington Prime Group, Inc.#

     81,453        470,798  

Washington Real Estate Investment Trust

     1,100        29,139  

Xenia Hotels & Resorts, Inc.

     115,900        2,263,527  
             


                49,809,035  
             


Real Estate Management/Services — 0.0%

 

Newmark Group, Inc., Class A

     14,329        132,686  
             


Rental Auto/Equipment — 0.2%

 

Rent-A-Center, Inc.†

     36,200        673,682  
             


Retail - Apparel/Shoe — 1.1%

 

Abercrombie & Fitch Co., Class A

     110,700        2,429,865  
Security Description    Shares          
Value
(Note 2)
 

                   

Retail - Apparel/Shoe (continued)

                 

Caleres, Inc.

     13,900      $ 432,290  

Cato Corp., Class A

     37,400        588,676  

Chico’s FAS, Inc.

     23,400        136,656  

DSW, Inc., Class A

     2,700        79,947  

Express, Inc.†#

     68,700        357,240  

Genesco, Inc.†

     3,500        168,945  

Tilly’s, Inc., Class A

     20,000        242,600  
             


                4,436,219  
             


Retail - Appliances — 0.1%

 

Conn’s, Inc.†#

     21,100        497,749  
             


Retail - Automobile — 0.2%

 

Rush Enterprises, Inc., Class A

     19,100        800,672  
             


Retail - Bookstores — 0.3%

 

Barnes & Noble Education, Inc.†

     181,400        1,249,846  
             


Retail - Building Products — 0.0%

 

BMC Stock Holdings, Inc.†

     7,300        139,649  
             


Retail - Discount — 0.2%

 

BJ’s Wholesale Club Holdings, Inc.†

     28,600        724,152  

Citi Trends, Inc.

     10,500        227,220  
             


                951,372  
             


Retail - Drug Store — 0.3%

 

Rite Aid Corp.†#

     1,534,600        1,135,604  
             


Retail - Home Furnishings — 0.0%

 

Bassett Furniture Industries, Inc.

     7,000        138,250  
             


Retail - Jewelry — 0.2%

 

Movado Group, Inc.

     15,100        528,953  

Signet Jewelers, Ltd.

     3,700        104,007  
             


                632,960  
             


Retail - Misc./Diversified — 0.6%

 

GameStop Corp., Class A#

     185,400        2,169,180  

Sally Beauty Holdings, Inc.†#

     4,300        77,701  
             


                2,246,881  
             


Retail - Office Supplies — 0.6%

 

Office Depot, Inc.

     649,200        2,252,724  
             


Retail - Pawn Shops — 0.0%

 

FirstCash, Inc.

     200        17,532  
             


Retail - Restaurants — 0.7%

 

Brinker International, Inc.

     50,300        2,302,231  

Cannae Holdings, Inc.†

     17,200        394,224  
             


                2,696,455  
             


Retail - Sporting Goods — 0.4%

 

Hibbett Sports, Inc.†

     78,600        1,457,244  

Zumiez, Inc.†

     11,700        288,990  
             


                1,746,234  
             


Retirement/Aged Care — 0.1%

 

Brookdale Senior Living, Inc.†

     41,800        282,568  
             


Rubber/Plastic Products — 0.6%

 

Myers Industries, Inc.

     6,858        130,851  

Trinseo SA

     48,300        2,424,177  
             


                2,555,028  
             


 

 

80


Table of Contents

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)(continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Savings & Loans/Thrifts — 3.4%

 

BankFinancial Corp.

     22,700      $ 355,028  

Beneficial Bancorp, Inc.

     142,658        2,299,647  

Berkshire Hills Bancorp, Inc.

     800        25,056  

BSB Bancorp, Inc.†

     2,700        95,310  

Dime Community Bancshares, Inc.

     18,000        359,640  

First Defiance Financial Corp.

     16,000        495,040  

Flushing Financial Corp.

     23,500        545,435  

HomeTrust Bancshares, Inc.

     3,800        103,474  

Investors Bancorp, Inc.

     293,200        3,685,524  

Meridian Bancorp, Inc.

     38,700        630,423  

Northfield Bancorp, Inc.

     77,800        1,159,998  

Oritani Financial Corp.#

     3,400        61,030  

Pacific Premier Bancorp, Inc.

     23,200        692,520  

Riverview Bancorp, Inc.

     10,100        78,174  

Territorial Bancorp, Inc.

     3,200        89,920  

United Community Financial Corp.

     14,900        149,298  

United Financial Bancorp, Inc.

     12,100        187,913  

Washington Federal, Inc.

     74,400        2,282,592  

Waterstone Financial, Inc.

     11,000        185,240  

WSFS Financial Corp.

     3,574        154,683  
             


                13,635,945  
             


Schools — 0.7%

 

American Public Education, Inc.†

     10,500        339,255  

K12, Inc.†

     70,600        2,262,024  
             


                2,601,279  
             


Seismic Data Collection — 0.0%

 

Dawson Geophysical Co.†

     29,596        106,842  
             


Semiconductor Components - Integrated Circuits — 0.6%

 

Cirrus Logic, Inc.†

     57,500        2,307,475  
             


Semiconductor Equipment — 0.6%

 

Cohu, Inc.

     37,700        674,453  

Ultra Clean Holdings, Inc.†#

     96,000        1,022,400  

Veeco Instruments, Inc.†

     51,000        582,420  
             


                2,279,273  
             


Steel - Producers — 0.1%

 

Commercial Metals Co.

     31,800        526,290  
             


Telecom Equipment - Fiber Optics — 0.3%

 

Ciena Corp.†

     31,100        1,326,726  
             


Telecom Services — 0.1%

 

Consolidated Communications Holdings, Inc.#

     34,300        340,599  

HC2 Holdings, Inc.†#

     35,500        111,825  

Spok Holdings, Inc.

     2,700        37,287  
             


                489,711  
             


Telecommunication Equipment — 0.1%

 

ADTRAN, Inc.

     33,600        504,672  
             


Telephone - Integrated — 0.1%

 

Frontier Communications Corp.†#

     170,650        520,482  
             


Television — 0.4%

 

Gray Television, Inc.†

     14,400        315,504  

Sinclair Broadcast Group, Inc., Class A

     25,300        913,330  

TEGNA, Inc.

     19,500        256,815  
             


                1,485,649  
             


Security Description    Shares          
Value
(Note 2)
 

                   

Textile - Products — 0.0%

 

Culp, Inc.

     4,400      $ 81,620  
             


Theaters — 0.0%

 

National CineMedia, Inc.

     12,800        99,072  
             


Tobacco — 0.1%

 

Vector Group, Ltd.#

     25,915        303,724  
             


Traffic Management Sys — 0.0%

 

Arlo Technologies, Inc.†

     15,236        65,972  
             


Transactional Software — 0.3%

 

ACI Worldwide, Inc.†

     31,400        1,000,718  

Synchronoss Technologies, Inc.†

     22,600        181,930  
             


                1,182,648  
             


Transport - Marine — 0.3%

 

Costamare, Inc.

     54,798        284,950  

SEACOR Holdings, Inc.†

     23,400        1,045,044  
             


                1,329,994  
             


Transport - Services — 0.1%

 

Echo Global Logistics, Inc.†

     22,400        538,048  
             


Transport - Truck — 1.2%

 

ArcBest Corp.

     76,420        2,661,708  

Covenant Transportation Group, Inc., Class A†

     9,200        209,852  

USA Truck, Inc.†

     5,200        89,440  

YRC Worldwide, Inc.†

     207,728        1,593,274  
             


                4,554,274  
             


Travel Services — 0.1%

 

Liberty TripAdvisor Holdings, Inc., Class A†

     30,100        454,209  
             


Water — 0.2%

 

American States Water Co.

     5,600        398,328  

Artesian Resources Corp., Class A

     1,400        54,936  

Consolidated Water Co., Ltd.

     13,100        173,051  
             


                626,315  
             


Wireless Equipment — 0.2%

 

InterDigital, Inc.

     5,600        390,488  

Ribbon Communications, Inc.†

     56,300        289,945  
             


                680,433  
             


Total Common Stocks

                 

(cost $359,098,732)

              384,787,666  
             


WARRANTS — 0.0%

 

Finance - Other Services—0.0%

                 

Emergent Capital, Inc.
Expires 10/01/2019 (strike price $10.75)
(cost $0)†(4)

     994        0  
             


Total Long-Term Investment Securities

                 

(cost $357,513,086)

              384,787,666  
             


SHORT-TERM INVESTMENT SECURITIES — 1.3%

 

Registered Investment Companies — 1.3%

 

State Street Navigator Securities Lending Government Money Market Portfolio
2.43%(1)(3)
(cost $5,185,970)

     5,185,970        5,185,970  
             


 

 

81


Table of Contents

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)(continued)


 

Security Description    Principal
Amount
        
Value
(Note 2)
 

REPURCHASE AGREEMENTS — 2.8%

 

Agreement with Fixed Income Clearing Corp., bearing interest at 0.50%, dated 02/28/2019, to be repurchased 03/01/2019 in the amount of $11,041,153 collateralized by $10,295,000 of United States Treasury Notes, bearing interest at 0.13% due 01/15/2022 and having an approximate value of $11,268,341
(cost $11,041,000)

   $ 11,041,000     $ 11,041,000  
            


TOTAL INVESTMENTS

                

(cost $373,740,056)(2)

     101.2     401,014,636  

Liabilities in excess of other assets

     (1.2     (4,710,496
    


 


NET ASSETS

     100.0   $ 396,304,140  
    


 



Non-income producing security

#

The security or a portion thereof is out on loan (see Note 2).

(1)

At February 28, 2019, the Fund had loaned securities with a total value of $38,303,319. This was secured by collateral of $5,185,970, which was received in cash and subsequently invested in short-term investments currently valued at $5,185,970 as reported in the Portfolio of Investments. Additional collateral of $34,433,581 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, 2019


 

Federal Home Loan Mtg. Corp.

  3.00% to 3.50%    12/15/2040 to 12/01/2047    $ 463,616  

Federal National Mtg. Assoc.

  3.00% to 4.50%    07/25/2041 to 05/01/2048      314,029  

Government National Mtg. Assoc.

  2.50% to 5.00%    05/20/2046 to 08/20/2048      255,041  

United States Treasury Bills

  0.00%    03/07/2019 to 06/20/2019      930,149  

United States Treasury Notes/Bonds

  zero coupon to 8.75%    03/15/2019 to 11/15/2048      32,470,746  

 

(2)

See Note 5 for cost of investments on a tax basis.

(3)

The rate shown is the 7-day yield as of February 28, 2019.

(4)

Illiquid security. At February 28, 2019 the aggregate value of these securities was $0 representing 0.0% of net assets.

 
Futures Contracts  
Number of
Contracts
     Type    Description    Expiration
Month
       Notional
Basis#
       Notional
Value#
       Unrealized
Appreciation
(Depreciation)
 
  139      Long   

Russell 2000 E-Mini Index

     March 2019        $ 10,835,247        $ 10,949,725        $ 114,478  
                                                   


 

#

Notional basis refers to the contractual amount agreed upon at inception of the open contract; notional value represents the current value of the open contract.    

 

The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2019 (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

   $ 384,787,666      $ —        $ —        $ 384,787,666  

Warrants

     —          0        —          0  

Short-Term Investment Securities

     5,185,970        —          —          5,185,970  

Repurchase Agreements

     —          11,041,000        —          11,041,000  
    


  


  


  


Total Investments at Value

   $ 389,973,636      $ 11,041,000      $ —        $ 401,014,636  
    


  


  


  


Other Financial Instruments:+

                                   

Futures Contracts

   $ 114,478      $ —        $         —        $ 114,478  
    


  


  


  



*

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.

 

See Notes to Financial Statements

 

82


Table of Contents

VALIC Company II Socially Responsible Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Applications Software

     5.6

Repurchase Agreements

     4.1  

Computers

     3.9  

Finance — Credit Card

     3.9  

Web Portals/ISP

     3.8  

Medical — Biomedical/Gene

     3.6  

Banks — Super Regional

     3.1  

Real Estate Investment Trusts

     3.0  

Electronic Components — Semiconductors

     2.9  

Cosmetics & Toiletries

     2.7  

Electric — Integrated

     2.6  

Oil Companies — Exploration & Production

     2.6  

Medical Products

     2.4  

Diagnostic Equipment

     2.1  

Beverages — Non-alcoholic

     2.0  

Telephone — Integrated

     1.9  

Retail — Building Products

     1.9  

Commercial Services — Finance

     1.8  

Networking Products

     1.5  

Medical — Drugs

     1.5  

Banks — Commercial

     1.4  

Retail — Restaurants

     1.4  

Multimedia

     1.3  

E-Commerce/Services

     1.3  

Insurance — Multi-line

     1.3  

Medical — HMO

     1.2  

Transport — Rail

     1.1  

Aerospace/Defense

     1.1  

Diversified Manufacturing Operations

     1.1  

Internet Content — Entertainment

     1.0  

Insurance — Life/Health

     1.0  

Cable/Satellite TV

     1.0  

Computer Services

     1.0  

Food — Misc./Diversified

     0.9  

Banks — Fiduciary

     0.9  

Finance — Other Services

     0.9  

Pipelines

     0.9  

Industrial Gases

     0.9  

Medical Labs & Testing Services

     0.9  

Enterprise Software/Service

     0.8  

Investment Management/Advisor Services

     0.8  

Airlines

     0.8  

Electronic Forms

     0.7  

Oil — Field Services

     0.7  

Insurance Brokers

     0.7  

Water

     0.7  

Electric Products — Misc.

     0.7  

Insurance — Property/Casualty

     0.6  

Retail — Drug Store

     0.6  

Machinery — General Industrial

     0.6  

Machinery — Construction & Mining

     0.6  

Chemicals — Diversified

     0.5  

Auto — Cars/Light Trucks

     0.5  

Commercial Services

     0.5  

Retail — Major Department Stores

     0.5  

Electronic Measurement Instruments

     0.5  

Finance — Investment Banker/Broker

     0.5  

Medical — Hospitals

     0.5  

Steel — Producers

     0.4  

Non-Hazardous Waste Disposal

     0.4  

Semiconductor Components — Integrated Circuits

     0.4  

Transport — Services

     0.4  

Apparel Manufacturers

     0.4  

Oil Refining & Marketing

     0.4  

Data Processing/Management

     0.3  

U.S. Government Treasuries

     0.3  

Machinery — Farming

     0.3  

Retail — Apparel/Shoe

     0.3  

Retail — Auto Parts

     0.3  

Consumer Products — Misc.

     0.3

E-Commerce/Products

     0.3  

Entertainment Software

     0.3  

Web Hosting/Design

     0.3  

Building Products — Cement

     0.2  

Food — Retail

     0.2  

Distribution/Wholesale

     0.2  

Instruments — Scientific

     0.2  

Medical Instruments

     0.2  

Retail — Discount

     0.2  

Industrial Automated/Robotic

     0.2  

Retail — Regional Department Stores

     0.2  

Computers — Memory Devices

     0.2  

Medical — Generic Drugs

     0.2  

Building Products — Air & Heating

     0.2  

Medical Information Systems

     0.2  

Semiconductor Equipment

     0.1  

Dental Supplies & Equipment

     0.1  

Computer Aided Design

     0.1  

Engines — Internal Combustion

     0.1  

Paper & Related Products

     0.1  

Food — Meat Products

     0.1  

Instruments — Controls

     0.1  

Auto — Heavy Duty Trucks

     0.1  

Advertising Agencies

     0.1  

Tools — Hand Held

     0.1  

Auto/Truck Parts & Equipment — Original

     0.1  

Agricultural Chemicals

     0.1  

Containers — Metal/Glass

     0.1  

Food — Confectionery

     0.1  

Diagnostic Kits

     0.1  

Containers — Paper/Plastic

     0.1  

Toys

     0.1  

Electric — Distribution

     0.1  

Gas — Distribution

     0.1  

Computer Software

     0.1  

Wireless Equipment

     0.1  

Decision Support Software

     0.1  

Oil Field Machinery & Equipment

     0.1  

Electronic Components — Misc.

     0.1  

Respiratory Products

     0.1  

Retail — Consumer Electronics

     0.1  

Registered Investment Companies

     0.1  

Retail — Perfume & Cosmetics

     0.1  

Consulting Services

     0.1  

Broadcast Services/Program

     0.1  

Electronic Connectors

     0.1  

Chemicals — Specialty

     0.1  
    


       100.0
    


 

*

Calculated as a percentage of net assets

 

 

83


Table of Contents

VALIC Company II Socially Responsible Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS — 95.5%

 

Advertising Agencies — 0.1%

 

Omnicom Group, Inc.

     11,052      $ 836,636  
             


Aerospace/Defense — 1.1%

 

TransDigm Group, Inc.†

     18,481        8,022,417  
             


Agricultural Chemicals — 0.1%

 

CF Industries Holdings, Inc.

     6,923        292,151  

Mosaic Co.

     15,461        483,465  
             


                775,616  
             


Airlines — 0.8%

 

American Airlines Group, Inc.

     12,910        459,983  

Delta Air Lines, Inc.

     49,445        2,451,483  

Southwest Airlines Co.

     28,427        1,593,049  

United Continental Holdings, Inc.†

     10,775        946,153  
             


                5,450,668  
             


Apparel Manufacturers — 0.4%

 

Capri Holdings, Ltd.†

     10,414        474,878  

Hanesbrands, Inc.#

     27,796        516,728  

PVH Corp.

     9,020        1,035,857  

Ralph Lauren Corp.

     6,830        854,911  

Under Armour, Inc., Class C†

     12        241  
             


                2,882,615  
             


Applications Software — 5.6%

 

Intuit, Inc.

     9,671        2,389,994  

Microsoft Corp.

     279,100        31,267,573  

Red Hat, Inc.†

     1,210        220,946  

salesforce.com, Inc.†

     35,670        5,837,396  
             


                39,715,909  
             


Auto - Cars/Light Trucks — 0.5%

 

Ford Motor Co.

     397,406        3,485,251  
             


Auto - Heavy Duty Trucks — 0.1%

 

PACCAR, Inc.

     12,959        878,620  
             


Auto/Truck Parts & Equipment-Original — 0.1%

 

Aptiv PLC

     9,373        778,990  
             


Banks - Commercial — 1.4%

 

BB&T Corp.

     74,383        3,791,301  

Citizens Financial Group, Inc.

     47,718        1,762,703  

M&T Bank Corp.

     13,066        2,261,202  

Regions Financial Corp.

     94,954        1,557,246  

Zions Bancorporation

     8,027        410,180  
             


                9,782,632  
             


Banks - Fiduciary — 0.9%

 

Bank of New York Mellon Corp.

     72,771        3,819,022  

Northern Trust Corp.

     12,208        1,137,785  

State Street Corp.

     23,264        1,671,984  
             


                6,628,791  
             


Banks - Super Regional — 3.1%

 

Comerica, Inc.

     9,086        791,481  

Fifth Third Bancorp

     51,422        1,418,219  

Huntington Bancshares, Inc.

     125,888        1,814,046  

KeyCorp

     80,910        1,428,871  

PNC Financial Services Group, Inc.

     46,295        5,834,096  

SunTrust Banks, Inc.

     38,298        2,484,391  

US Bancorp

     153,692        7,944,340  
             


                21,715,444  
             


Security Description    Shares          
Value
(Note 2)
 

                   

Beverages - Non-alcoholic — 2.0%

 

Monster Beverage Corp.†

     25,257      $ 1,612,154  

PepsiCo, Inc.

     106,521        12,318,089  
             


                13,930,243  
             


Broadcast Services/Program — 0.1%

 

Discovery, Inc., Class A†

     13,534        391,133  
             


Building Products - Air & Heating — 0.2%

 

Johnson Controls International PLC

     31,887        1,124,654  
             


Building Products - Cement — 0.2%

 

Martin Marietta Materials, Inc.

     4,626        868,763  

Vulcan Materials Co.

     7,853        875,295  
             


                1,744,058  
             


Cable/Satellite TV — 1.0%

 

Comcast Corp., Class A

     182,197        7,045,558  
             


Chemicals - Diversified — 0.5%

 

Eastman Chemical Co.

     4,865        402,287  

LyondellBasell Industries NV, Class A

     16,839        1,440,071  

PPG Industries, Inc.

     15,472        1,732,400  
             


                3,574,758  
             


Chemicals - Specialty — 0.1%

 

International Flavors & Fragrances, Inc.

     2,821        359,678  
             


Commercial Services — 0.5%

 

Cintas Corp.

     90        18,594  

Ecolab, Inc.

     18,285        3,088,519  

Nielsen Holdings PLC

     11,699        306,514  
             


                3,413,627  
             


Commercial Services - Finance — 1.8%

 

Automatic Data Processing, Inc.

     19,111        2,924,556  

H&R Block, Inc.

     2,176        52,551  

IHS Markit, Ltd.†

     16,877        897,350  

Moody’s Corp.

     8,453        1,463,383  

PayPal Holdings, Inc.†

     41,742        4,093,638  

S&P Global, Inc.

     17,433        3,493,050  
             


                12,924,528  
             


Computer Aided Design — 0.1%

 

Autodesk, Inc.†

     5,914        964,041  
             


Computer Services — 1.0%

 

Accenture PLC, Class A

     30,108        4,858,829  

Cognizant Technology Solutions Corp., Class A

     22,285        1,581,789  

DXC Technology Co.

     6,465        425,785  
             


                6,866,403  
             


Computer Software — 0.1%

 

Akamai Technologies, Inc.†

     7,891        549,687  
             


Computers — 3.9%

 

Apple, Inc.

     147,355        25,514,518  

Hewlett Packard Enterprise Co.

     65,965        1,080,507  

HP, Inc.

     52,981        1,045,315  
             


                27,640,340  
             


Computers - Memory Devices — 0.2%

 

NetApp, Inc.

     6,491        423,213  

Seagate Technology PLC

     5,843        272,050  

Western Digital Corp.

     10,824        544,447  
             


                1,239,710  
             


Consulting Services — 0.1%

 

Verisk Analytics, Inc.†

     3,265        412,794  
             


 

 

84


Table of Contents

VALIC Company II Socially Responsible Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Consumer Products - Misc. — 0.3%

 

Kimberly - Clark Corp.

     17,437      $ 2,037,165  
             


Containers - Metal/Glass — 0.1%

 

Ball Corp.

     13,967        765,112  
             


Containers - Paper/Plastic — 0.1%

 

WestRock Co.

     18,046        674,559  
             


Cosmetics & Toiletries — 2.7%

 

Colgate-Palmolive Co.

     54,097        3,563,369  

Estee Lauder Cos., Inc., Class A

     12,867        2,019,347  

Procter & Gamble Co.

     138,847        13,683,372  
             


                19,266,088  
             


Data Processing/Management — 0.3%

 

Fidelity National Information Services, Inc.

     13,611        1,472,030  

Fiserv, Inc.†#

     10,243        867,480  

Paychex, Inc.

     861        66,314  
             


                2,405,824  
             


Decision Support Software — 0.1%

 

MSCI, Inc.

     2,759        509,642  
             


Dental Supplies & Equipment — 0.1%

 

Align Technology, Inc.†

     2,260        585,272  

DENTSPLY SIRONA, Inc.

     10,902        455,268  
             


                1,040,540  
             


Diagnostic Equipment — 2.1%

 

Danaher Corp.

     58,075        7,376,687  

Thermo Fisher Scientific, Inc.

     27,451        7,125,456  
             


                14,502,143  
             


Diagnostic Kits — 0.1%

 

IDEXX Laboratories, Inc.†

     3,384        714,126  
             


Distribution/Wholesale — 0.2%

 

Fastenal Co.

     8,346        525,298  

LKQ Corp.†

     17,173        475,692  

WW Grainger, Inc.

     1,760        536,395  
             


                1,537,385  
             


Diversified Manufacturing Operations — 1.1%

 

Eaton Corp. PLC

     38,539        3,074,256  

Illinois Tool Works, Inc.

     18,533        2,670,235  

Ingersoll - Rand PLC

     10,410        1,098,880  

Parker - Hannifin Corp.

     5,078        894,540  
             


                7,737,911  
             


E-Commerce/Products — 0.3%

 

eBay, Inc.

     54,036        2,007,437  
             


E-Commerce/Services — 1.3%

 

Booking Holdings, Inc.†

     3,671        6,229,834  

Expedia Group, Inc.

     16,028        1,976,412  

TripAdvisor, Inc.†

     15,293        813,129  
             


                9,019,375  
             


Electric Products - Misc. — 0.7%

 

AMETEK, Inc.

     15,508        1,234,127  

Emerson Electric Co.

     49,047        3,342,553  
             


                4,576,680  
             


Electric - Distribution — 0.1%

 

CenterPoint Energy, Inc.

     20,325        612,595  
             


Electric - Integrated — 2.6%

 

AES Corp.

     79,569        1,370,974  

CMS Energy Corp.

     29,428        1,600,883  
Security Description    Shares          
Value
(Note 2)
 

                   

Electric - Integrated (continued)

 

Consolidated Edison, Inc.

     81,065      $ 6,683,809  

Eversource Energy

     26,645        1,860,087  

PPL Corp.

     54,806        1,763,109  

WEC Energy Group, Inc.

     66,541        5,075,748  
             


                18,354,610  
             


Electronic Components - Misc. — 0.1%

 

Corning, Inc.

     14,457        503,248  
             


Electronic Components - Semiconductors — 2.9%

 

Advanced Micro Devices, Inc.†

     23,560        554,367  

Broadcom, Inc.

     13,763        3,789,780  

Intel Corp.

     152,914        8,098,325  

Micron Technology, Inc.†

     36,234        1,481,246  

NVIDIA Corp.

     20,169        3,111,270  

Texas Instruments, Inc.

     34,179        3,615,454  
             


                20,650,442  
             


Electronic Connectors — 0.1%

 

TE Connectivity, Ltd.

     4,734        388,614  
             


Electronic Forms — 0.7%

 

Adobe, Inc.†

     19,766        5,188,575  
             


Electronic Measurement Instruments — 0.5%

 

Agilent Technologies, Inc.

     21,961        1,744,582  

Fortive Corp.

     19,156        1,562,555  
             


                3,307,137  
             


Engines - Internal Combustion — 0.1%

 

Cummins, Inc.

     6,249        962,908  
             


Enterprise Software/Service — 0.8%

 

Oracle Corp.

     112,814        5,880,994  
             


Entertainment Software — 0.3%

 

Activision Blizzard, Inc.

     25,193        1,061,633  

Electronic Arts, Inc.†

     9,818        940,368  
             


                2,002,001  
             


Finance - Credit Card — 3.9%

 

American Express Co.

     22,084        2,379,330  

Capital One Financial Corp.

     13,167        1,100,498  

Mastercard, Inc., Class A

     42,682        9,593,633  

Visa, Inc., Class A#

     96,650        14,315,798  
             


                27,389,259  
             


Finance - Investment Banker/Broker — 0.5%

 

Charles Schwab Corp.

     61,770        2,842,038  

Jefferies Financial Group, Inc.

     19,378        392,792  
             


                3,234,830  
             


Finance - Other Services — 0.9%

 

CME Group, Inc.

     21,056        3,830,297  

Intercontinental Exchange, Inc.

     35,493        2,738,285  
             


                6,568,582  
             


Food - Confectionery — 0.1%

 

J.M. Smucker Co.

     7,210        763,611  
             


Food - Meat Products — 0.1%

 

Hormel Foods Corp.#

     21,132        916,284  
             


Food - Misc./Diversified — 0.9%

 

Campbell Soup Co.#

     12,530        451,331  

General Mills, Inc.

     40,475        1,907,587  

Kellogg Co.

     22,919        1,289,423  

Kraft Heinz Co.

     63,765        2,116,360  

McCormick & Co., Inc.

     6,434        874,895  
             


                6,639,596  
             


 

 

85


Table of Contents

VALIC Company II Socially Responsible Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Food - Retail — 0.2%

 

Kroger Co.

     58,169      $ 1,706,097  
             


Gas - Distribution — 0.1%

 

NiSource, Inc.

     21,672        584,711  
             


Home Decoration Products — 0.0%

 

Newell Brands, Inc.#

     6,146        99,750  
             


Industrial Automated/Robotic — 0.2%

 

Rockwell Automation, Inc.

     7,177        1,281,525  
             


Industrial Gases — 0.9%

 

Air Products & Chemicals, Inc.

     19,422        3,518,878  

Linde PLC

     16,012        2,773,919  
             


                6,292,797  
             


Instruments - Controls — 0.1%

 

Mettler - Toledo International, Inc.†

     1,320        898,801  
             


Instruments - Scientific — 0.2%

 

PerkinElmer, Inc.

     6,112        575,506  

Waters Corp.†

     3,852        933,031  
             


                1,508,537  
             


Insurance Brokers — 0.7%

 

Aon PLC

     10,227        1,754,237  

Marsh & McLennan Cos., Inc.

     26,685        2,482,239  

Willis Towers Watson PLC

     2,359        405,795  
             


                4,642,271  
             


Insurance - Life/Health — 1.0%

 

Aflac, Inc.

     70,131        3,446,237  

Lincoln National Corp.

     4,667        291,781  

Principal Financial Group, Inc.

     2,195        115,545  

Prudential Financial, Inc.

     34,163        3,274,524  
             


                7,128,087  
             


Insurance - Multi-line — 1.3%

 

Allstate Corp.

     25,001        2,359,594  

Chubb, Ltd.

     41,760        5,591,664  

Loews Corp.

     18,961        902,923  
             


                8,854,181  
             


Insurance - Property/Casualty — 0.6%

 

Progressive Corp.

     27,591        2,011,384  

Travelers Cos., Inc.

     18,754        2,492,594  
             


                4,503,978  
             


Internet Content - Entertainment — 1.0%

 

Netflix, Inc.†

     18,195        6,515,629  

Twitter, Inc.†

     26,247        807,883  
             


                7,323,512  
             


Investment Management/Advisor Services — 0.8%

 

Ameriprise Financial, Inc.

     2,918        384,096  

BlackRock, Inc.

     9,007        3,992,083  

Franklin Resources, Inc.

     7,521        245,260  

Invesco, Ltd.

     22,647        438,219  

T. Rowe Price Group, Inc.

     6,933        696,281  
             


                5,755,939  
             


Machinery - Construction & Mining — 0.6%

 

Caterpillar, Inc.

     29,313        4,025,847  
             


Machinery - Farming — 0.3%

 

Deere & Co.

     14,389        2,360,372  
             


Machinery - General Industrial — 0.6%

 

Roper Technologies, Inc.

     12,465        4,034,297  
             


Security Description    Shares          
Value
(Note 2)
 

                   

Medical Information Systems — 0.2%

 

Cerner Corp.†

     19,428      $ 1,086,997  
             


Medical Instruments — 0.2%

 

Edwards Lifesciences Corp.†

     8,660        1,466,051  
             


Medical Labs & Testing Services — 0.9%

 

IQVIA Holdings, Inc.†

     11,033        1,545,723  

Laboratory Corp. of America Holdings†

     16,337        2,421,797  

Quest Diagnostics, Inc.

     26,053        2,254,887  
             


                6,222,407  
             


Medical Products — 2.4%

 

Abbott Laboratories

     105,118        8,159,259  

ABIOMED, Inc.†

     1,269        424,481  

Baxter International, Inc.

     39,184        2,928,220  

Cooper Cos., Inc.

     2,398        685,804  

Henry Schein, Inc.†

     16,711        990,962  

Hologic, Inc.†

     10,838        511,012  

Stryker Corp.

     18,325        3,454,446  
             


                17,154,184  
             


Medical - Biomedical/Gene — 3.6%

 

Alexion Pharmaceuticals, Inc.†

     9,932        1,344,098  

Amgen, Inc.

     38,054        7,233,304  

Biogen, Inc.†

     8,809        2,889,440  

Celgene Corp.†

     33,566        2,790,006  

Gilead Sciences, Inc.

     65,520        4,260,110  

Illumina, Inc.†

     6,735        2,106,506  

Incyte Corp.†

     7,150        616,544  

Regeneron Pharmaceuticals, Inc.†

     4,154        1,789,294  

Vertex Pharmaceuticals, Inc.†

     13,073        2,467,529  
             


                25,496,831  
             


Medical - Drugs — 1.5%

 

AbbVie, Inc.

     57,806        4,580,547  

Nektar Therapeutics†

     9,089        368,468  

Zoetis, Inc.

     57,355        5,404,562  
             


                10,353,577  
             


Medical - Generic Drugs — 0.2%

 

Perrigo Co. PLC

     24,678        1,201,819  
             


Medical - HMO — 1.2%

 

Centene Corp.†

     41,328        2,516,462  

Humana, Inc.

     16,496        4,702,020  

WellCare Health Plans, Inc.†

     5,205        1,319,884  
             


                8,538,366  
             


Medical - Hospitals — 0.5%

 

HCA Healthcare, Inc.

     23,079        3,208,904  
             


Multimedia — 1.3%

 

Viacom, Inc., Class B

     13,635        398,415  

Walt Disney Co.

     77,284        8,720,726  
             


                9,119,141  
             


Networking Products — 1.5%

 

Cisco Systems, Inc.

     207,275        10,730,627  
             


Non - Hazardous Waste Disposal — 0.4%

 

Republic Services, Inc.

     9,541        748,301  

Waste Management, Inc.

     23,165        2,345,456  
             


                3,093,757  
             


Office Automation & Equipment — 0.0%

 

Xerox Corp.

     1,950        60,255  
             


 

 

86


Table of Contents

VALIC Company II Socially Responsible Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares          
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Oil Companies - Exploration & Production — 2.6%

 

Anadarko Petroleum Corp.

     35,719      $ 1,553,777  

Apache Corp.

     20,278        672,824  

Cabot Oil & Gas Corp.

     29,204        719,002  

Concho Resources, Inc.

     10,550        1,160,500  

Devon Energy Corp.

     34,997        1,032,761  

EOG Resources, Inc.

     41,636        3,913,784  

Hess Corp.

     19,171        1,109,042  

Marathon Oil Corp.

     59,008        979,533  

Noble Energy, Inc.

     34,305        759,856  

Occidental Petroleum Corp.

     62,010        4,101,962  

Pioneer Natural Resources Co.

     14,113        1,989,227  
             


                17,992,268  
             


Oil Field Machinery & Equipment — 0.1%

 

National Oilwell Varco, Inc.

     17,948        505,057  
             


Oil Refining & Marketing — 0.4%

 

HollyFrontier Corp.

     10,542        539,750  

Valero Energy Corp.

     27,544        2,246,489  
             


                2,786,239  
             


Oil - Field Services — 0.7%

 

Baker Hughes a GE Co., LLC

     17,288        456,058  

Schlumberger, Ltd.

     87,337        3,848,068  

TechnipFMC PLC

     18,060        402,557  
             


                4,706,683  
             


Paper & Related Products — 0.1%

 

International Paper Co.

     20,681        947,603  
             


Pipelines — 0.9%

 

Kinder Morgan, Inc.

     193,349        3,704,567  

ONEOK, Inc.

     42,365        2,722,375  
             


                6,426,942  
             


Real Estate Investment Trusts — 3.0%

 

American Tower Corp.

     21,585        3,802,198  

AvalonBay Communities, Inc.

     6,291        1,224,417  

Crown Castle International Corp.

     19,264        2,287,600  

Digital Realty Trust, Inc.

     7,268        822,156  

Equinix, Inc.

     3,254        1,378,069  

Equity Residential

     12,765        940,653  

HCP, Inc.

     6,226        191,574  

Host Hotels & Resorts, Inc.

     7,543        147,918  

Prologis, Inc.

     30,915        2,165,905  

Public Storage

     6,488        1,372,147  

SBA Communications Corp.†

     2,446        441,650  

Simon Property Group, Inc.

     19,855        3,596,932  

Ventas, Inc.

     13,573        851,706  

Welltower, Inc.

     18,605        1,382,537  

Weyerhaeuser Co.

     21,113        525,503  
             


                21,130,965  
             


Respiratory Products — 0.1%

 

ResMed, Inc.

     4,856        497,400  
             


Retail - Apparel/Shoe — 0.3%

 

L Brands, Inc.

     4,451        116,349  

Ross Stores, Inc.

     13,459        1,276,317  

Tapestry, Inc.

     25,288        883,563  
             


                2,276,229  
             


Retail - Auto Parts — 0.3%

 

Genuine Parts Co.

     9,359        1,018,072  

O’Reilly Automotive, Inc.†

     2,883        1,072,361  
             


                2,090,433  
             


Security Description    Shares          
Value
(Note 2)
 

                   

Retail - Automobile — 0.0%

 

CarMax, Inc.†

     1,599      $ 99,298  
             


Retail - Building Products — 1.9%

 

Home Depot, Inc.

     54,087        10,013,667  

Lowe’s Cos., Inc.

     31,301        3,289,422  
             


                13,303,089  
             


Retail - Consumer Electronics — 0.1%

 

Best Buy Co., Inc.

     6,713        462,123  
             


Retail - Discount — 0.2%

 

Dollar Tree, Inc.†

     14,975        1,442,542  
             


Retail - Drug Store — 0.6%

 

Walgreens Boots Alliance, Inc.

     60,248        4,289,055  
             


Retail - Jewelry — 0.0%

 

Tiffany & Co.

     1,709        162,423  
             


Retail - Major Department Stores — 0.5%

 

Nordstrom, Inc.#

     7,241        342,355  

TJX Cos., Inc.

     58,528        3,001,901  
             


                3,344,256  
             


Retail - Perfume & Cosmetics — 0.1%

 

Ulta Beauty, Inc.†

     1,363        425,924  
             


Retail - Regional Department Stores — 0.2%

 

Kohl’s Corp.

     12,123        818,666  

Macy’s, Inc.

     18,583        460,673  
             


                1,279,339  
             


Retail - Restaurants — 1.4%

 

Chipotle Mexican Grill, Inc.†

     911        553,460  

Darden Restaurants, Inc.

     6,198        694,858  

Starbucks Corp.

     77,383        5,436,930  

Yum! Brands, Inc.

     30,747        2,905,591  
             


                9,590,839  
             


Semiconductor Components - Integrated Circuits — 0.4%

 

Analog Devices, Inc.

     5,034        538,437  

QUALCOMM, Inc.#

     47,250        2,522,677  
             


                3,061,114  
             


Semiconductor Equipment — 0.1%

 

Applied Materials, Inc.

     21,354        818,712  

Lam Research Corp.

     1,330        234,200  
             


                1,052,912  
             


Steel - Producers — 0.4%

 

Nucor Corp.

     51,635        3,127,532  
             


Telephone - Integrated — 1.9%

 

CenturyLink, Inc.

     53,371        703,964  

Verizon Communications, Inc.

     224,670        12,788,216  
             


                13,492,180  
             


Tools - Hand Held — 0.1%

 

Stanley Black & Decker, Inc.

     6,292        833,250  
             


Toys — 0.1%

 

Hasbro, Inc.

     6,458        548,284  

Mattel, Inc.†

     4,565        65,827  
             


                614,111  
             


Transport - Rail — 1.1%

 

CSX Corp.

     24,450        1,776,782  

Norfolk Southern Corp.

     7,461        1,337,757  

Union Pacific Corp.

     29,492        4,945,808  
             


                8,060,347  
             


 

 

87


Table of Contents

VALIC Company II Socially Responsible Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Shares/
Principal
Amount
         
Value
(Note 2)
 

COMMON STOCKS (continued)

 

Transport - Services — 0.4%

 

United Parcel Service, Inc., Class B

     27,258      $ 3,003,832  
             


Water — 0.7%

 

American Water Works Co., Inc.

     45,331        4,606,536  
             


Web Hosting/Design — 0.3%

 

VeriSign, Inc.†

     10,218        1,819,213  
             


Web Portals/ISP — 3.8%

 

Alphabet, Inc., Class A†

     23,579        26,562,922  
             


Wireless Equipment — 0.1%

 

Motorola Solutions, Inc.

     3,732        534,124  
             


Total Long-Term Investment Securities

 

        

(cost $501,381,342)

              672,552,472  
      


SHORT-TERM INVESTMENT SECURITIES — 0.4%

 

Registered Investment Companies — 0.1%

 

State Street Navigator Securities Lending Government Money Market Portfolio
2.43%(1)(2)

     458,964        458,964  
             


U.S. Government Treasuries — 0.3%

 

United States Treasury Bills
2.40% due 06/20/2019(4)

   $ 2,400,000        2,382,268  
             


Total Short-Term Investment Securities

 

        

(cost $2,841,348)

              2,841,232  
      


Security Description        
Principal
Amount
    Value
(Note 2)
 

REPURCHASE AGREEMENTS — 4.1%

 

Agreement with Fixed Income Clearing Corp., bearing interest at 0.50%, dated 02/28/2019, to be repurchased 03/01/2019 in the amount of $29,150,405 collateralized by $30,210,000 of United States Treasury Notes, bearing interest at 1.88% due 01/31/2022 and having an approximate value of $29,736,066
(cost $29,150,000)

   $ 29,150,000     $ 29,150,000  
            


TOTAL INVESTMENTS

                

(cost $533,372,690)(3)

     100.0     704,543,704  

Liabilities in excess of other assets

     (0.0     (53,741
    


 


NET ASSETS

     100.0   $ 704,489,963  
    


 



Non-income producing security

#

The security or a portion thereof is out on loan.

(1)

The rate shown is the 7-day yield as of February 28, 2019.

(2)

At February 28, 2019, the Fund had loaned securities with a total value of $19,379,197. This was secured by collateral of $458,964, which was received in cash and subsequently invested in short-term investments currently valued at $458,964 as reported in the Portfolio of Investments. Additional collateral of $19,251,451 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, 2019


 

United States Treasury Bills

  0.00%   03/07/2019 to 06/20/2019   $ 1,300,970  

United States Treasury Notes/Bonds

  zero coupon to 8.75%   03/15/2019 to 11/15/2048     17,950,481  

 

(3)

See Note 5 for cost of investments on a tax basis.

(4)

The security or portion thereof was pledged as collateral to cover margin requirements for open futures contracts.

 
Futures Contracts                                       
Number of
Contracts
     Type    Description    Expiration
Month
       Notional
Basis#
       Notional
Value#
       Unrealized
Appreciation
(Depreciation)
 
  231      Long   

S&P 500 E-Mini Index

     March 2019        $ 29,195,196        $ 32,163,285        $ 2,968,089  
                                                   


 

#

Notional basis refers to the contractual amount agreed upon at inception of the open contract; notional value represents the current value of the open contract.

 

The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2019 (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

   $ 672,552,472      $ —        $ —        $ 672,552,472  

Short Term Investment Securities:

                                   

Registered Investment Companies

     458,964        —          —          458,964  

U.S. Government Treasuries

     —          2,382,268        —          2,382,268  

Repurchase Agreements

     —          29,150,000        —          29,150,000  
    


  


  


  


Total Investments at Value

   $ 673,011,436      $ 31,532,268      $ —        $ 704,543,704  
    


  


  


  


Other Financial Instruments:+

                                   

Futures Contracts

   $ 2,968,089      $ —        $ —        $ 2,968,089  
    


  


  


  



*

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.

 

See Notes to Financial Statements

 

88


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited)


 

Industry Allocation*

 

Federal National Mtg. Assoc.

     16.6

Sovereign

     10.9  

Registered Investment Companies

     9.8  

United States Treasury Notes

     4.7  

Federal Home Loan Mtg. Corp.

     4.6  

Diversified Banking Institutions

     3.0  

Cable/Satellite TV

     2.3  

Government National Mtg. Assoc.

     2.2  

Pipelines

     2.2  

Diversified Financial Services

     2.0  

Oil Companies — Exploration & Production

     2.0  

Real Estate Investment Trusts

     2.0  

Banks — Commercial

     1.6  

Telephone — Integrated

     1.5  

Cellular Telecom

     1.4  

Electric — Integrated

     1.4  

Satellite Telecom

     1.1  

Chemicals — Diversified

     1.0  

Medical — Drugs

     1.0  

U.S. Government Treasuries

     1.0  

Oil — Field Services

     0.9  

Oil Companies — Integrated

     0.8  

Finance — Consumer Loans

     0.8  

Auto — Cars/Light Trucks

     0.6  

Real Estate Management/Services

     0.5  

Television

     0.5  

Enterprise Software/Service

     0.5  

Cosmetics & Toiletries

     0.5  

Medical — Hospitals

     0.5  

Metal Processors & Fabrication

     0.5  

Aerospace/Defense — Equipment

     0.5  

Retail — Restaurants

     0.5  

Computer Services

     0.5  

Electric — Generation

     0.4  

Computers

     0.4  

Insurance — Life/Health

     0.4  

Broadcast Services/Program

     0.4  

Oil Field Machinery & Equipment

     0.4  

Building — Heavy Construction

     0.4  

Metal — Copper

     0.4  

Food — Misc./Diversified

     0.4  

Transport — Equipment & Leasing

     0.4  

Building & Construction Products — Misc.

     0.4  

Computers — Integrated Systems

     0.4  

Agricultural Chemicals

     0.4  

Medical Labs & Testing Services

     0.4  

Chemicals — Specialty

     0.4  

Containers — Metal/Glass

     0.4  

Finance — Credit Card

     0.4  

Metal — Diversified

     0.4  

Transport — Rail

     0.4  

Diversified Manufacturing Operations

     0.3  

Security Services

     0.3  

Insurance — Property/Casualty

     0.3  

Banks — Super Regional

     0.3  

Auto — Heavy Duty Trucks

     0.3  

Batteries/Battery Systems

     0.3  

Building & Construction — Misc.

     0.3  

Commercial Services — Finance

     0.3  

Rental Auto/Equipment

     0.3  

Oil & Gas Drilling

     0.3  

Steel — Producers

     0.3  

Hotels/Motels

     0.3  

Diversified Minerals

     0.3  

Food — Meat Products

     0.3  

Paper & Related Products

     0.3  

Medical — HMO

     0.3  

Applications Software

     0.3  

Electronic Parts Distribution

     0.3  

Retail — Office Supplies

     0.3  

Computer Software

     0.3  

Gambling (Non-Hotel)

     0.3  

Containers — Paper/Plastic

     0.3  

Distribution/Wholesale

     0.3  

Transport — Marine

     0.2  

Machinery — Farming

     0.2  

Finance — Investment Banker/Broker

     0.2  

Multimedia

     0.2  

Food — Retail

     0.2  

Auto/Truck Parts & Equipment — Original

     0.2  

Casino Services

     0.2  

Insurance Brokers

     0.2  

Diagnostic Equipment

     0.2  

Coal

     0.2  

Poultry

     0.2  

Energy — Alternate Sources

     0.2  

Consumer Products — Misc.

     0.2  

Machinery — Construction & Mining

     0.2  

Retail — Appliances

     0.2  

Internet Content — Entertainment

     0.2  

Finance — Mortgage Loan/Banker

     0.2  

Retail — Automobile

     0.2  

Chemicals — Fibers

     0.2  

Metal — Iron

     0.2  

Building — Residential/Commercial

     0.2  

Machinery — General Industrial

     0.2  

Beverages — Non-alcoholic

     0.2  

Dialysis Centers

     0.2  

Investment Companies

     0.2  

Savings & Loans/Thrifts

     0.2  

Internet Connectivity Services

     0.2  

Publishing — Books

     0.2  

Computers — Memory Devices

     0.2  

Real Estate Operations & Development

     0.2  

Brewery

     0.2  

Radio

     0.2  

Pharmacy Services

     0.1  

Medical — Generic Drugs

     0.1  

Insurance — Multi-line

     0.1  

Retail — Vitamins & Nutrition Supplements

     0.1  

Finance — Other Services

     0.1  

Telecom Services

     0.1  

Airport Development/Maintenance

     0.1  

Food — Dairy Products

     0.1  

Transport — Truck

     0.1  

Retail — Pawn Shops

     0.1  

Water

     0.1  

Human Resources

     0.1  

Transport — Services

     0.1  

Telecommunication Equipment

     0.1  

Electronic Components — Semiconductors

     0.1  

Electric — Distribution

     0.1  

Building Societies

     0.1  

Medical Products

     0.1  

Semiconductor Equipment

     0.1  

Finance — Commercial

     0.1  

Finance — Leasing Companies

     0.1  

Leisure Products

     0.1  

Insurance — Mutual

     0.1  

Airlines

     0.1  

Machinery — Pumps

     0.1  

United States Treasury Bonds

     0.1  

Theaters

     0.1  

Retail — Sporting Goods

     0.1  

Building Products — Doors & Windows

     0.1  

Retail — Petroleum Products

     0.1  

Retail — Hypermarkets

     0.1  

Diversified Operations

     0.1  
 

 

89


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO PROFILE — February 28, 2019 (unaudited) — (continued)


 

Industry Allocation* (continued)

 

Retail — Discount

     0.1

Trucking/Leasing

     0.1  

Retail — Mail Order

     0.1  

Electronic Measurement Instruments

     0.1  

E-Commerce/Services

     0.1  

Medical Instruments

     0.1  

Marine Services

     0.1  

Banks — Special Purpose

     0.1  

Medical — Wholesale Drug Distribution

     0.1  

Tools — Hand Held

     0.1  

Electronic Components — Misc.

     0.1  

Auto Repair Centers

     0.1  

Platinum

     0.1  

Diamonds/Precious Stones

     0.1  

Sovereign Agency

     0.1  

Quarrying

     0.1  

Retail — Building Products

     0.1  

Retail — Major Department Stores

     0.1  

Soap & Cleaning Preparation

     0.1  

Internet Financial Services

     0.1  

Office Supplies & Forms

     0.1  
    


       105.7
    


 

Credit Quality†#

 

Aaa

     31.5

Aa

     1.7  

A

     5.7  

Baa

     14.3  

Ba

     14.1  

B

     22.8  

Caa

     4.6  

Not Rated@

     5.3  
    


       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

 

 

90


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

ASSET BACKED SECURITIES — 2.0%

 

Diversified Financial Services — 2.0%

 

American Express Credit Account Master Trust
Series 2018-4, Class A
2.99% due 12/15/2023

   $ 225,000      $ 226,184  

American Express Credit Account Master Trust
Series 2018-8, Class A
3.18% due 04/15/2024

     303,000        306,416  

Avis Budget Rental Car Funding AESOP LLC
Series 2015-1A, Class A
2.50% due 07/20/2021*

     400,000        397,323  

BA Credit Card Trust
Series 2018-A2, Class A2
3.00% due 09/15/2023

     318,000        319,910  

BANK
Series 2019-BN16, Class A2
3.93% due 02/15/2052(1)

     680,000        701,903  

Benchmark Mtg. Trust
Series 2019-B9, Class AAB
3.93% due 03/15/2052(1)

     850,000        879,503  

Benchmark Mtg. Trust
Series 2018-B7, Class A4
4.51% due 05/15/2053(1)

     2,000,000        2,153,289  

BX Trust FRS
Series 2018-MCSF, Class A
3.07% (1 ML+0.58%)
due 04/15/2035*(1)

     1,235,000        1,215,660  

CarMax Auto Owner Trust
Series 2016-4, Class A4
1.60% due 06/15/2022

     175,000        171,331  

CarMax Auto Owner Trust
Series 2018-4, Class A3
3.36% due 09/15/2023

     400,000        405,447  

Chase Mtg. Finance Trust VRS
Series 2016-2, Class M2
3.75% due 12/25/2045*(2)(19)

     786,266        788,049  

Citibank Credit Card Issuance Trust
Series 2018-A1, Class A1
2.49% due 01/20/2023

     100,000        99,509  

Citibank Credit Card Issuance Trust
Series 2018-A6, Class A6
3.21% due 12/07/2024

     100,000        101,358  

Citigroup Commercial Mtg. Trust
Series 2018-C5, Class A4
4.23% due 06/10/2051(1)

     1,000,000        1,051,752  

COMM Mtg. Trust VRS
Series 2015-CR22, Class XA
0.95% due 03/10/2048(1)(4)(19)

     4,868,055        184,436  

COMM Mtg. Trust
Series 2018-COR3, Class A3
4.23% due 05/10/2051(1)

     1,000,000        1,046,030  

CSAIL Commercial Mtg. Trust
Series 2017-C8, Class A2
2.99% due 06/15/2050(1)

     150,000        149,518  

CSAIL Commercial Mtg. Trust
Series 2015-C1, Class A4
3.51% due 04/15/2050(1)

     490,000        495,036  

DBCG Mtg. Trust FRS
Series 2017-BBG, Class A
3.19% (1 ML+0.70%)
due 06/15/2034*(1)

     1,000,000        994,367  

Discover Card Execution Note Trust
Series 2015-A4, Class A4
2.19% due 04/17/2023

     100,000        99,130  

Discover Card Execution Note Trust
Series 2019-A1, Class A1
3.04% due 07/15/2024

     220,000        221,425  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Diversified Financial Services (continued)

 

Ford Credit Auto Owner Trust
Series 2016-C, Class B
1.73% due 03/15/2022

   $ 115,000      $ 113,050  

Ford Credit Auto Owner Trust
Series 2018-2, Class A
3.47% due 01/15/2030*

     100,000        100,669  

Ford Credit Floorplan Master Owner Trust
Series 2017-1, Class A1
2.07% due 05/15/2022

     129,000        127,743  

Ford Credit Floorplan Master Owner Trust
Series 2017-3, Class A
2.48% due 09/15/2024

     250,000        246,443  

GM Financial Consumer Automobile Receivables Trust
Series 2017-3A, Class 4A
2.13% due 03/16/2023*

     200,000        196,951  

GS Mtg. Securities Trust
Series 2015-GC28, Class A2
2.90% due 02/10/2048(1)

     75,000        75,010  

Honda Auto Receivables Owner Trust
Series 2019 -1, Class A3
2.83% due 03/20/2023

     233,000        233,096  

JP Morgan Mtg. Trust VRS
Series 2018-1, Class A5
3.50% due 06/25/2048*(2)(19)

     1,755,970        1,744,421  

Mercedes-Benz Auto Lease Trust
Series 2019-A, Class A4
3.25% due 10/15/2024

     62,000        62,203  

Mercedes-Benz Auto Lease Trust
Series 2018-B, Class A4
3.31% due 07/15/2024

     367,000        370,292  

MTRO Commercial Mtg. Trust-TECH FRS
Series 2019 -TECH, Class A
3.39% (1 ML+0.90%)
due 12/15/2033*(1)

     550,000        550,344  

Shellpoint Co-Originator Trust VRS
Series 2017-2, Class A1
3.50% due 10/25/2047*(2)(19)

     915,587        895,862  

Synchrony Credit Card Master Note Trust
Series 2016-2, Class A
2.21% due 05/15/2024

     100,000        98,536  

Toyota Auto Receivables Owner Trust
Series 2018-C, Class A4
3.13% due 02/15/2024

     200,000        201,631  

Verizon Owner Trust
Series 2017-3A, Class A1A
2.06% due 04/20/2022*

     250,000        247,811  

Verizon Owner Trust
Series 2018-1A, Class C
3.20% due 09/20/2022*

     100,000        99,941  

Volkswagen Auto Loan Enhanced Trust
Series 2018-2, Class A4
3.33% due 02/20/2025

     150,000        152,316  

World Financial Network Credit Card Master Trust
Series 2017-C, Class A
2.31% due 08/15/2024

     200,000        198,049  
             


Total Asset Backed Securities

 

(cost $17,542,834)

              17,721,944  
      


U.S. CORPORATE BONDS & NOTES — 32.7%

 

Advertising Agencies — 0.0%

 

Interpublic Group of Cos., Inc.
Senior Notes
4.20% due 04/15/2024

     108,000        108,920  
 

 

91


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Advertising Agencies (continued)

 

Interpublic Group of Cos., Inc.
Senior Notes
5.40% due 10/01/2048

   $ 155,000      $ 150,530  
             


                259,450  
             


Aerospace/Defense — 0.0%

 

General Dynamics Corp.
Company Guar. Notes
2.88% due 05/11/2020

     248,000        248,318  
             


Aerospace/Defense - Equipment — 0.4%

 

Harris Corp.
Senior Notes
4.40% due 06/15/2028

     398,000        409,691  

L3 Technologies, Inc.
Company Guar. Notes
4.40% due 06/15/2028

     179,000        183,875  

Triumph Group, Inc.
Company Guar. Notes
4.88% due 04/01/2021

     1,347,000        1,326,795  

United Technologies Corp.
Senior Notes
1.15% due 05/18/2024

   EUR 825,000        945,881  

United Technologies Corp.
Senior Notes
3.95% due 08/16/2025

     539,000        549,755  
             


                3,415,997  
             


Airlines — 0.1%

 

Atlas Air, Inc.
Pass-Through Certs.
Series 1999-1, Class B
7.63% due 01/02/2020(5)(6)

     47,508        47,784  

United Airlines Pass-Through Trust
Pass-Through Certs.
Series 2014-2, Class B
4.63% due 03/03/2024

     862,319        868,183  
             


                915,967  
             


Apparel Manufacturers — 0.0%

 

William Carter Co.
Company Guar. Notes
5.63% due 03/15/2027*

     181,000        181,000  
             


Applications Software — 0.3%

 

CDK Global, Inc.
Senior Notes
5.88% due 06/15/2026

     1,266,000        1,305,563  

Microsoft Corp.
Senior Notes
3.13% due 12/06/2028

   EUR 750,000        1,028,692  
             


                2,334,255  
             


Auto - Cars/Light Trucks — 0.6%

 

BMW US Capital LLC
Company Guar. Notes
3.10% due 04/12/2021*

     408,000        408,645  

Daimler Finance North America LLC
Company Guar. Notes
2.00% due 07/06/2021*

     273,000        264,349  

Daimler Finance North America LLC
Company Guar. Notes
2.45% due 05/18/2020*

     518,000        513,154  

Daimler Finance North America LLC
Company Guar. Notes
3.75% due 11/05/2021*

     278,000        280,310  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Auto - Cars/Light Trucks (continued)

 

Ford Motor Credit Co. LLC
Senior Notes
3.02% due 03/06/2024

   EUR 600,000      $ 682,470  

Ford Motor Credit Co. LLC
Senior Notes
3.34% due 03/18/2021

     489,000        479,738  

General Motors Financial Co, Inc.
Company Guar. Notes
1.69% due 03/26/2025

   EUR 600,000        658,231  

General Motors Financial Co., Inc.
Company Guar. Notes
3.70% due 05/09/2023

     270,000        266,217  

Hyundai Capital America
Senior Notes
3.95% due 02/01/2022*

     659,000        662,758  

Nissan Motor Acceptance Corp.
Senior Notes
2.65% due 07/13/2022*

     412,000        396,265  

Toyota Motor Credit Corp.
Senior Notes
3.45% due 09/20/2023

     364,000        369,107  
             


                4,981,244  
             


Auto - Heavy Duty Trucks — 0.3%

 

Allison Transmission, Inc.
Senior Notes
5.00% due 10/01/2024*

     1,329,000        1,337,306  

JB Poindexter & Co., Inc.
Senior Notes
7.13% due 04/15/2026*

     1,434,000        1,408,905  
             


                2,746,211  
             


Banks - Commercial — 0.3%

 

BankUnited, Inc.
Senior Notes
4.88% due 11/17/2025

     1,140,000        1,164,042  

Citizens Bank NA
Senior Notes
3.75% due 02/18/2026

     257,000        256,900  

KeyBank NA
Senior Notes
3.30% due 02/01/2022

     302,000        303,986  

Regions Financial Corp.
Sub. Notes
7.38% due 12/10/2037(6)

     700,000        903,110  

SunTrust Bank
Senior Notes
3.50% due 08/02/2022

     308,000        310,064  
             


                2,938,102  
             


Banks - Super Regional — 0.3%

 

Bank of America NA
Senior Notes
3.34% due 01/25/2023

     426,000        428,152  

Wells Fargo & Co.
Senior Notes
1.00% due 02/02/2027

   EUR  1,000,000        1,111,193  

Wells Fargo & Co.
Senior Notes
3.00% due 02/19/2025

     705,000        686,272  

Wells Fargo & Co.
Senior Notes
3.07% due 01/24/2023

     327,000        324,761  
 

 

92


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Banks - Super Regional (continued)

 

Wells Fargo Bank NA
Senior Notes
3.55% due 08/14/2023

   $ 382,000      $ 387,718  
             


                2,938,096  
             


Batteries/Battery Systems — 0.3%

 

Energizer Holdings, Inc.
Company Guar. Notes
6.38% due 07/15/2026*

     1,580,000        1,595,800  

EnerSys
Company Guar. Notes
5.00% due 04/30/2023*

     1,293,000        1,286,535  
             


                2,882,335  
             


Beverages - Non-alcoholic — 0.2%

 

Coca-Cola Co.
Senior Notes
1.25% due 03/08/2031

   EUR 470,000        530,297  

Keurig Dr Pepper, Inc.
Company Guar. Notes
4.06% due 05/25/2023*

     194,000        196,132  

Keurig Dr Pepper, Inc.
Company Guar. Notes
4.42% due 05/25/2025*

     513,000        522,382  

PepsiCo., Inc.
Senior Notes
2.75% due 04/30/2025

     288,000        283,612  
             


                1,532,423  
             


Brewery — 0.2%

 

Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
4.70% due 02/01/2036*

     243,000        234,571  

Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
4.90% due 02/01/2046*

     222,000        213,002  

Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
4.60% due 04/15/2048

     124,000        114,198  

Anheuser-Busch InBev Worldwide, Inc.
Company Guar. Notes
5.55% due 01/23/2049

     701,000        736,510  
             


                1,298,281  
             


Broadcast Services/Program — 0.3%

 

Fox Corp.
Company Guar. Notes
5.48% due 01/25/2039*

     203,000        213,566  

Fox Corp.
Company Guar. Notes
5.58% due 01/25/2049*

     257,000        270,963  

Univision Communications, Inc.
Senior Sec. Notes
5.13% due 05/15/2023*

     1,985,000        1,801,388  
             


                2,285,917  
             


Building & Construction Products - Misc. — 0.3%

 

Owens Corning
Senior Notes
4.30% due 07/15/2047

     483,000        375,507  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Building & Construction Products - Misc. (continued)

 

Standard Industries, Inc.
Senior Notes
6.00% due 10/15/2025*

   $ 1,800,000      $ 1,878,750  
             


                2,254,257  
             


Building & Construction - Misc. — 0.3%

 

Frontdoor, Inc.
Senior Notes
6.75% due 08/15/2026*#

     1,246,000        1,266,248  

Weekley Homes LLC/Weekley Finance Corp.
Senior Notes
6.00% due 02/01/2023

     1,253,000        1,184,085  
             


                2,450,333  
             


Building - Heavy Construction — 0.4%

 

Great Lakes Dredge & Dock Corp.
Company Guar. Notes
8.00% due 05/15/2022

     1,256,000        1,316,916  

Tutor Perini Corp.
Company Guar. Notes
6.88% due 05/01/2025*#

     1,900,000        1,900,000  
             


                3,216,916  
             


Building - Residential/Commercial — 0.0%

 

Toll Brothers Finance Corp.
Company Guar. Notes
4.35% due 02/15/2028

     226,000        212,158  
             


Cable/Satellite TV — 1.1%

 

Block Communications, Inc.
Senior Notes
6.88% due 02/15/2025*

     1,486,000        1,534,295  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.00% due 02/01/2028*

     556,000        534,802  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.38% due 05/01/2025*

     980,000        1,003,275  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.50% due 05/01/2026*

     394,000        402,865  

CCO Holdings LLC/CCO Holdings Capital Corp.
Senior Notes
5.88% due 04/01/2024*

     472,000        491,470  

Charter Communications Operating LLC/Charter Communications Operating Capital
Senior Sec. Notes
5.38% due 04/01/2038

     29,000        27,958  

Charter Communications Operating LLC/Charter Communications Operating Capital
Senior Sec. Notes
5.75% due 04/01/2048

     112,000        111,976  

Charter Communications Operating LLC/Charter Communications Operating Capital
Senior Sec. Notes
6.38% due 10/23/2035

     101,000        108,131  

Comcast Corp.
Company Guar. Notes
3.60% due 03/01/2024

     350,000        355,288  

Comcast Corp.
Company Guar. Notes
3.90% due 03/01/2038

     62,000        58,278  

Comcast Corp.
Company Guar. Notes
4.60% due 10/15/2038

     351,000        362,220  
 

 

93


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Cable/Satellite TV (continued)

 

CSC Holdings LLC
Company Guar. Notes
5.50% due 04/15/2027*

   $ 4,095,000      $ 4,104,173  

DISH DBS Corp.
Company Guar. Notes
5.00% due 03/15/2023#

     394,000        350,660  
             


                9,445,391  
             


Casino Services — 0.2%

 

Eldorado Resorts, Inc.
Company Guar. Notes
6.00% due 09/15/2026*#

     1,660,000        1,689,050  
             


Cellular Telecom — 1.0%

 

Sprint Corp.
Company Guar. Notes
7.88% due 09/15/2023

     7,670,000        8,208,894  

Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC
Senior Sec. Notes
4.74% due 09/20/2029*

     730,000        730,913  
             


                8,939,807  
             


Chemicals - Diversified — 0.2%

 

Dow Chemical Co.
Senior Notes
5.55% due 11/30/2048*

     251,000        264,099  

DowDuPont, Inc.
Senior Notes
4.73% due 11/15/2028

     370,000        386,118  

DowDuPont, Inc.
Senior Notes
5.42% due 11/15/2048

     353,000        376,752  

Eastman Chemical Co.
Senior Notes
1.50% due 05/26/2023

   EUR 575,000        676,268  
             


                1,703,237  
             


Chemicals - Fibers — 0.2%

 

Rayonier AM Products, Inc.
Company Guar. Notes
5.50% due 06/01/2024*

     1,720,000        1,591,000  
             


Chemicals - Specialty — 0.3%

 

Kraton Polymers LLC/Kraton Polymers Capital Corp.
Company Guar. Notes
7.00% due 04/15/2025*

     1,915,000        1,936,544  

Lubrizol Corp.
Company Guar. Notes
6.50% due 10/01/2034

     155,000        203,576  
             


                2,140,120  
             


Coal — 0.2%

 

SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp.
Company Guar. Notes
7.50% due 06/15/2025*

     1,954,000        1,988,195  
             


Coatings/Paint — 0.0%

 

RPM International, Inc.
Senior Notes
4.25% due 01/15/2048

     29,000        23,936  
             


Commercial Services — 0.0%

 

Ecolab, Inc.
Senior Notes
2.38% due 08/10/2022

     228,000        222,538  
             


Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Commercial Services - Finance — 0.2%

 

Refinitiv US Holdings, Inc.
Company Guar. Notes
8.25% due 11/15/2026*

   $ 1,985,000      $ 1,942,198  
             


Computer Services — 0.4%

 

Harland Clarke Holdings Corp.
Senior Sec. Notes
8.38% due 08/15/2022*

     1,021,000        953,359  

IBM Credit LLC
Senior Notes
3.00% due 02/06/2023

     796,000        791,581  

International Business Machines Corp.
Senior Notes
1.75% due 01/31/2031

   EUR 375,000        428,686  

International Business Machines Corp.
Senior Notes
1.75% due 01/31/2031

   EUR 525,000        598,952  

International Business Machines Corp.
Senior Notes
2.50% due 01/27/2022

     329,000        324,609  
             


                3,097,187  
             


Computer Software — 0.2%

 

Rackspace Hosting, Inc.
Company Guar. Notes
8.63% due 11/15/2024*#

     1,565,000        1,369,375  
             


Computers — 0.4%

 

Apple, Inc.
Senior Notes
2.85% due 05/06/2021

     189,000        189,394  

Diamond 1 Finance Corp./Diamond 2 Finance Corp.
Senior Sec. Notes
6.02% due 06/15/2026*

     3,115,000        3,304,844  

Diamond 1 Finance Corp./Diamond 2 Finance Corp.
Senior Sec. Notes
8.10% due 07/15/2036*

     249,000        281,701  

Hewlett Packard Enterprise Co.
Senior Notes
6.20% due 10/15/2035

     59,000        60,741  
             


                3,836,680  
             


Computers - Integrated Systems — 0.4%

 

Diebold Nixdorf, Inc.
Company Guar. Notes
8.50% due 04/15/2024

     2,107,000        1,790,950  

Everi Payments, Inc.
Company Guar. Notes
7.50% due 12/15/2025*

     1,265,000        1,265,000  
             


                3,055,950  
             


Consumer Products - Misc. — 0.1%

 

Central Garden & Pet Co.
Company Guar. Notes
5.13% due 02/01/2028

     1,350,000        1,252,125  
             


Containers - Metal/Glass — 0.3%

 

Crown Cork & Seal Co., Inc.
Company Guar. Notes
7.38% due 12/15/2026

     854,000        935,130  

Owens-Brockway Glass Container, Inc.
Company Guar. Notes
5.38% due 01/15/2025*

     1,584,000        1,615,601  
             


                2,550,731  
             


 

 

94


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Cosmetics & Toiletries — 0.5%

 

Coty, Inc.
Company Guar. Notes
6.50% due 04/15/2026*#

   $ 1,875,000      $ 1,806,938  

First Quality Finance Co., Inc.
Company Guar. Notes
5.00% due 07/01/2025*

     1,328,000        1,298,120  

Procter & Gamble Co.
Senior Notes
1.88% due 10/30/2038

   EUR 550,000        659,924  

Procter & Gamble Co.
Senior Notes
1.88% due 10/30/2038

   EUR 250,000        299,965  
             


                4,064,947  
             


Diagnostic Equipment — 0.2%

 

Ortho-Clinical Diagnostics, Inc.
Senior Notes
6.63% due 05/15/2022*#

     1,482,000        1,426,425  

Thermo Fisher Scientific, Inc.
Senior Notes
2.88% due 07/24/2037

   EUR 480,000        575,992  
             


                2,002,417  
             


Distribution/Wholesale — 0.2%

 

H&E Equipment Services, Inc.
Company Guar. Notes
5.63% due 09/01/2025

     1,290,000        1,277,100  
             


Diversified Banking Institutions — 1.5%

 

Bank of America Corp.
Senior Notes
0.75% due 07/26/2023#

   EUR  1,125,000        1,287,490  

Bank of America Corp.
Senior Notes
2.38% due 06/19/2024

   EUR 1,100,000        1,353,292  

Bank of America Corp.
Senior Notes
3.55% due 03/05/2024

     313,000        314,225  

Bank of America Corp.
Senior Notes
3.86% due 07/23/2024

     277,000        281,529  

Bank of America Corp.
Sub. Notes
4.18% due 11/25/2027

     784,000        780,760  

Bank of America Corp.
Sub. Notes
6.11% due 01/29/2037(6)

     296,000        341,749  

Citigroup, Inc.
Senior Notes
3.20% due 10/21/2026

     858,000        821,513  

Citigroup, Inc.
Senior Notes
3.30% due 04/27/2025

     142,000        140,070  

Citigroup, Inc.
Sub. Notes
4.45% due 09/29/2027

     387,000        388,551  

Citigroup, Inc.
Senior Notes
4.65% due 07/23/2048

     378,000        394,290  

Citigroup, Inc.
Sub. Notes
5.88% due 02/22/2033(6)

     269,000        300,723  

Citigroup, Inc.
Sub. Notes
6.00% due 10/31/2033(6)

     107,000        121,324  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Diversified Banking Institutions (continued)

 

Goldman Sachs Group, Inc.
Senior Notes
1.25% due 05/01/2025

   EUR 900,000      $ 1,022,649  

Goldman Sachs Group, Inc.
Senior Notes
2.00% due 11/01/2028

   EUR 600,000        689,664  

Goldman Sachs Group, Inc.
Senior Notes
2.91% due 06/05/2023

     325,000        318,998  

Goldman Sachs Group, Inc.
Senior Notes
3.63% due 02/20/2024

     357,000        357,322  

Goldman Sachs Group, Inc.
Senior Notes
4.02% due 10/31/2038

     359,000        331,511  

Goldman Sachs Group, Inc.
Sub. Notes
4.25% due 10/21/2025

     341,000        342,574  

Goldman Sachs Group, Inc.
Sub. Notes
6.75% due 10/01/2037(6)

     232,000        275,815  

JPMorgan Chase & Co.
Senior Notes
2.55% due 03/01/2021

     882,000        873,949  

JPMorgan Chase & Co.
Senior Notes
3.88% due 07/24/2038

     222,000        210,495  

Morgan Stanley
Sub. Notes
5.00% due 11/24/2025

     1,610,000        1,693,298  

Woori Bank
Sub. Notes
4.75% due 04/30/2024

     550,000        564,095  
             


                13,205,886  
             


Diversified Manufacturing Operations — 0.1%

 

3M Co.
Senior Notes
3.25% due 02/14/2024

     227,000        230,409  

General Electric Capital Corp.
Sub. Notes
5.30% due 02/11/2021

     728,000        748,853  

Illinois Tool Works, Inc.
Senior Notes
3.50% due 03/01/2024

     244,000        248,720  
             


                1,227,982  
             


E-Commerce/Products — 0.0%

 

Amazon.com, Inc.
Senior Notes
4.80% due 12/05/2034

     161,000        179,518  
             


Electric - Distribution — 0.1%

 

Metropolitan Edison Co.
Senior Notes
4.30% due 01/15/2029*

     303,000        306,548  

Oglethorpe Power Corp.
1st Mtg. Notes
5.05% due 10/01/2048*

     584,000        605,938  
             


                912,486  
             


Electric - Generation — 0.0%

 

Basin Electric Power Cooperative
1st Mtg. Notes
4.75% due 04/26/2047*

     19,000        19,390  
             


 

 

95


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Electric - Integrated — 0.7%

 

Dominion Resources, Inc.
Senior Notes
5.25% due 08/01/2033

   $ 280,000      $ 305,002  

DTE Electric Co.
General Refunding Mtg.
3.95% due 03/01/2049

     524,000        511,722  

Duke Energy Progress LLC
1st Mtg. Notes
2.80% due 05/15/2022

     165,000        164,474  

Entergy Texas, Inc.
1st Mtg. Notes
4.50% due 03/30/2039

     747,000        758,776  

FirstEnergy Corp.
Senior Notes
3.90% due 07/15/2027

     78,000        77,266  

FirstEnergy Corp.
Senior Notes
7.38% due 11/15/2031

     959,000        1,236,650  

Georgia Power Co.
Senior Notes
2.00% due 09/08/2020

     224,000        220,997  

Jersey Central Power & Light Co.
Senior Notes
4.30% due 01/15/2026*

     148,000        151,112  

Massachusetts Electric Co.
Notes
4.00% due 08/15/2046*

     445,000        415,695  

MidAmerican Energy Co.
1st Mtg. Notes
4.25% due 07/15/2049

     478,000        488,275  

Nevada Power Co.
General Refunding Mtg.
2.75% due 04/15/2020

     167,000        167,113  

Public Service Co. of Colorado
1st Mtg. Bonds
3.70% due 06/15/2028

     366,000        372,459  

Public Service Co. of Colorado
1st Mtg. Bonds
4.10% due 06/15/2048

     259,000        260,717  

South Carolina Electric & Gas Co.
1st Mtg. Notes
4.35% due 02/01/2042

     166,000        170,904  

South Carolina Electric & Gas Co.
1st Mtg. Bonds
5.10% due 06/01/2065

     570,000        620,640  
             


                5,921,802  
             


Electronic Components - Semiconductors — 0.1%

 

Intel Corp.
Senior Notes
2.45% due 07/29/2020

     333,000        332,014  

Micron Technology, Inc.
Senior Notes
4.64% due 02/06/2024

     106,000        106,727  

Micron Technology, Inc.
Senior Notes
5.33% due 02/06/2029

     310,000        310,555  
             


                749,296  
             


Electronic Measurement Instruments — 0.1%

 

Trimble, Inc.
Senior Notes
4.75% due 12/01/2024

     32,000        32,210  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Electronic Measurement Instruments (continued)

 

Trimble, Inc.
Senior Notes
4.90% due 06/15/2028

   $ 631,000      $ 626,942  
             


                659,152  
             


Electronic Parts Distribution — 0.3%

 

Arrow Electronics, Inc.
Senior Notes
4.00% due 04/01/2025

     183,000        177,214  

Ingram Micro, Inc.
Senior Notes
5.45% due 12/15/2024

     2,149,000        2,108,066  
             


                2,285,280  
             


Energy - Alternate Sources — 0.2%

 

Pattern Energy Group, Inc.
Company Guar. Notes
5.88% due 02/01/2024*

     1,869,000        1,903,352  
             


Enterprise Software/Service — 0.3%

 

Donnelley Financial Solutions, Inc.
Company Guar. Notes
8.25% due 10/15/2024

     1,709,000        1,702,591  

Oracle Corp.
Senior Notes
2.95% due 11/15/2024

     535,000        528,767  
             


                2,231,358  
             


Finance - Consumer Loans — 0.8%

 

Enova International, Inc.
Company Guar. Notes
8.50% due 09/01/2024*

     1,753,000        1,678,497  

Enova International, Inc.
Company Guar. Notes
8.50% due 09/15/2025*

     1,079,000        1,022,353  

SLM Corp.
Senior Notes
5.63% due 08/01/2033

     2,289,000        1,768,252  

Springleaf Finance Corp.
Company Guar. Notes
6.88% due 03/15/2025

     1,850,000        1,893,937  

Springleaf Finance Corp.
Company Guar. Notes
7.13% due 03/15/2026

     549,000        555,863  

Synchrony Financial
Senior Notes
4.25% due 08/15/2024

     249,000        244,201  
             


                7,163,103  
             


Finance - Credit Card — 0.3%

 

Alliance Data Systems Corp.
Company Guar. Notes
5.88% due 11/01/2021*

     1,730,000        1,760,275  

American Express Co.
Senior Notes
2.50% due 08/01/2022

     30,000        29,383  

American Express Co.
Senior Notes
3.40% due 02/22/2024

     550,000        551,472  

American Express Co.
Senior Notes
4.20% due 11/06/2025

     176,000        182,891  
             


                2,524,021  
             


 

 

96


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Finance - Investment Banker/Broker — 0.2%

 

Jefferies Group LLC/Jefferies Group Capital Finance, Inc.
Senior Notes
4.15% due 01/23/2030

   $ 217,000      $ 189,599  

Lehman Brothers Holdings, Inc.
Escrow Notes
5.50% due 04/04/2016(6)†

     97,000        1,892  

Lehman Brothers Holdings, Inc.
Escrow Notes
6.75% due 12/28/2017(5)(6)†

     111,000        11  

Lehman Brothers Holdings, Inc.
Escrow Notes
7.50% due 05/11/2038(5)(6)†

     143,000        14  

LPL Holdings, Inc.
Company Guar. Notes
5.75% due 09/15/2025*

     1,730,000        1,749,462  
             


                1,940,978  
             


Finance - Mortgage Loan/Banker — 0.2%

 

Quicken Loans, Inc.
Company Guar. Notes
5.75% due 05/01/2025*

     1,775,000        1,751,925  
             


Finance - Other Services — 0.1%

 

National Rural Utilities Cooperative Finance Corp.
Collateral Trust Bonds
2.30% due 11/01/2020

     471,000        466,593  

National Rural Utilities Cooperative Finance Corp.
Senior Notes
2.30% due 09/15/2022

     256,000        248,659  

National Rural Utilities Cooperative Finance Corp.
Collateral Trust Notes
2.40% due 04/25/2022

     173,000        169,756  
             


                885,008  
             


Food - Meat Products — 0.1%

 

Smithfield Foods, Inc.
Senior Notes
2.65% due 10/03/2021*

     140,000        132,848  

Tyson Foods, Inc.
Senior Notes
5.10% due 09/28/2048

     302,000        292,679  
             


                425,527  
             


Food - Misc./Diversified — 0.4%

 

Conagra Brands, Inc.
Senior Notes
5.40% due 11/01/2048#

     339,000        318,076  

Conagra Brands, Inc.
Senior Notes
7.00% due 10/01/2028

     280,000        316,203  

General Mills, Inc.
Senior Notes
4.70% due 04/17/2048#

     418,000        389,748  

Kraft Heinz Foods Co.
Sec. Notes
4.88% due 02/15/2025*

     360,000        365,872  

Mondelez International, Inc.
Senior Notes
3.63% due 02/13/2026

     355,000        350,359  

Nestle Holdings, Inc.
Company Guar. Notes
3.50% due 09/24/2025*

     335,000        340,698  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Food - Misc./Diversified (continued)

 

Post Holdings, Inc.
Company Guar. Notes
5.50% due 03/01/2025*

   $ 1,072,000      $ 1,074,680  
             


                3,155,636  
             


Food - Retail — 0.2%

 

Albertsons Cos. LLC/Safeway, Inc./New Albertsons LP/Albertson’s LLC
Company Guar. Notes
5.75% due 03/15/2025

     2,025,000        1,923,750  

Kroger Co.
Senior Notes
5.40% due 01/15/2049

     215,000        211,888  
             


                2,135,638  
             


Gambling (Non-Hotel) — 0.2%

 

Scientific Games International, Inc.
Senior Sec. Notes
5.00% due 10/15/2025*#

     1,325,000        1,283,594  

Waterford Gaming LLC/Waterford Gaming Financial Corp.
Escrow Notes
8.63% due 09/15/2014*†(5)(6)

     272,905        5,076  
             


                1,288,670  
             


Gas - Distribution — 0.0%

 

Brooklyn Union Gas Co.
Senior Notes
4.49% due 03/04/2049*

     195,000        194,571  

NiSource, Inc.
Senior Notes
5.65% due 02/01/2045

     185,000        205,911  
             


                400,482  
             


Hotels/Motels — 0.3%

 

Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc.
Company Guar. Notes
6.13% due 12/01/2024

     761,000        785,733  

Wyndham Worldwide Corp.
Senior Sec. Notes
5.40% due 04/01/2024

     671,000        674,355  

Wyndham Worldwide Corp.
Senior Sec. Notes
5.75% due 04/01/2027#

     1,195,000        1,186,037  
             


                2,646,125  
             


Industrial Automated/Robotic — 0.0%

 

Rockwell Automation, Inc.
Senior Notes
4.20% due 03/01/2049

     131,000        131,569  
             


Insurance Brokers — 0.0%

 

Marsh & McLennan Cos., Inc.
Senior Notes
3.50% due 12/29/2020

     172,000        173,606  

Willis North America, Inc.
Company Guar. Notes
5.05% due 09/15/2048

     186,000        183,721  
             


                357,327  
             


Insurance - Life/Health — 0.0%

 

AXA Equitable Holdings, Inc.
Senior Notes
5.00% due 04/20/2048

     78,000        72,911  
 

 

97


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Insurance - Life/Health (continued)

 

Brighthouse Financial, Inc.
Senior Notes
4.70% due 06/22/2047

   $ 272,000      $ 215,228  
             


                288,139  
             


Insurance - Multi-line — 0.0%

 

Assurant, Inc.
Senior Notes
6.75% due 02/15/2034

     144,000        159,511  
             


Insurance - Mutual — 0.1%

 

MassMutual Global Funding II
Senior Sec. Notes
2.75% due 06/22/2024*

     287,000        280,144  

New York Life Global Funding
Sec. Notes
1.95% due 09/28/2020*

     647,000        638,088  
             


                918,232  
             


Insurance - Property/Casualty — 0.2%

 

ACE INA Holdings, Inc.
Company Guar. Notes
2.88% due 11/03/2022

     239,000        239,595  

AmWINS Group, Inc.
Company Guar. Notes
7.75% due 07/01/2026*

     1,265,000        1,296,625  

Chubb INA Holdings, Inc.
Company Guar. Notes
2.50% due 03/15/2038

   EUR 500,000        578,386  
             


                2,114,606  
             


Internet Connectivity Services — 0.2%

 

Cogent Communications Group, Inc.
Senior Sec. Notes
5.38% due 03/01/2022*

     1,359,000        1,382,783  
             


Internet Content - Entertainment — 0.2%

 

Netflix, Inc.
Senior Notes
5.88% due 02/15/2025#

     1,667,000        1,767,020  
             


Investment Companies — 0.2%

 

FS Energy & Power Fund
Senior Sec. Notes
7.50% due 08/15/2023*

     1,495,000        1,512,656  
             


Machinery - Construction & Mining — 0.2%

 

Caterpillar Financial Services Corp.
Senior Notes
2.55% due 11/29/2022

     150,000        147,601  

Caterpillar Financial Services Corp.
Senior Notes
3.15% due 09/07/2021

     151,000        151,942  

Caterpillar Financial Services Corp.
Senior Notes
3.45% due 05/15/2023

     228,000        231,162  

Terex Corp.
Company Guar. Notes
5.63% due 02/01/2025*

     1,341,000        1,304,122  
             


                1,834,827  
             


Machinery - Electrical — 0.0%

 

ABB Finance USA, Inc.
Company Guar. Notes
3.38% due 04/03/2023

     284,000        285,752  
             


Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Machinery - Farming — 0.1%

 

CNH Industrial Capital LLC
Company Guar. Notes
4.20% due 01/15/2024

   $ 463,000      $ 462,710  

John Deere Capital Corp.
Senior Notes
2.35% due 01/08/2021

     180,000        178,590  

John Deere Capital Corp.
Senior Notes
3.45% due 01/10/2024

     344,000        350,703  

John Deere Capital Corp.
Senior Notes
3.65% due 10/12/2023

     159,000        163,994  
             


                1,155,997  
             


Machinery - General Industrial — 0.1%

 

Roper Technologies, Inc.
Senior Notes
4.20% due 09/15/2028

     549,000        552,360  
             


Machinery - Thermal Process — 0.0%

 

Cleaver-Brooks, Inc.
Senior Sec. Notes
7.88% due 03/01/2023*

     209,000        204,298  
             


Medical Instruments — 0.1%

 

Boston Scientific Corp.
Senior Notes
4.70% due 03/01/2049

     186,000        185,698  

Medtronic, Inc.
Company Guar. Notes
2.50% due 03/15/2020

     433,000        432,069  
             


                617,767  
             


Medical Labs & Testing Services — 0.4%

 

Laboratory Corp. of America Holdings
Senior Notes
3.25% due 09/01/2024

     418,000        406,257  

Laboratory Corp. of America Holdings
Senior Notes
4.70% due 02/01/2045

     269,000        252,436  

MEDNAX, Inc.
Company Guar. Notes
5.25% due 12/01/2023*

     2,144,000        2,168,120  

Roche Holdings, Inc.
Company Guar. Notes
1.75% due 01/28/2022*

     226,000        218,831  
             


                3,045,644  
             


Medical Products — 0.0%

 

Baxter International, Inc.
Senior Notes
3.50% due 08/15/2046

     272,000        224,799  
             


Medical - Biomedical/Gene — 0.0%

 

Celgene Corp.
Senior Notes
3.63% due 05/15/2024

     279,000        278,624  

Celgene Corp.
Senior Notes
4.63% due 05/15/2044

     130,000        121,351  
             


                399,975  
             


Medical - Drugs — 0.1%

 

AbbVie, Inc.
Senior Notes
4.45% due 05/14/2046

     190,000        166,882  
 

 

98


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Medical - Drugs (continued)

 

AbbVie, Inc.
Senior Notes
4.88% due 11/14/2048

   $ 215,000      $ 201,945  

GlaxoSmithKline Capital, Inc.
Company Guar. Notes
3.38% due 05/15/2023

     175,000        177,190  

Pfizer, Inc.
Senior Notes
3.00% due 09/15/2021#

     168,000        169,073  
             


                715,090  
             


Medical - Generic Drugs — 0.0%

 

Mylan, Inc.
Company Guar. Notes
4.55% due 04/15/2028

     271,000        255,322  
             


Medical - HMO — 0.2%

 

UnitedHealth Group, Inc.
Senior Bonds
2.38% due 10/15/2022

     1,280,000        1,257,275  

UnitedHealth Group, Inc.
Senior Notes
3.75% due 07/15/2025

     231,000        237,137  

UnitedHealth Group, Inc.
Senior Notes
4.45% due 12/15/2048

     220,000        229,461  
             


                1,723,873  
             


Medical - Hospitals — 0.2%

 

HCA, Inc.
Senior Sec. Notes
5.00% due 03/15/2024

     209,000        218,337  

HCA, Inc.
Senior Sec. Notes
5.25% due 06/15/2026

     1,039,000        1,095,810  
             


                1,314,147  
             


Medical - Wholesale Drug Distribution — 0.1%

 

Allergan Sales LLC
Company Guar. Notes
4.88% due 02/15/2021*

     102,000        104,468  

Cardinal Health, Inc.
Senior Notes
4.60% due 03/15/2043

     533,000        468,091  
             


                572,559  
             


Metal Processors & Fabrication — 0.2%

 

Novelis Corp.
Company Guar. Notes
6.25% due 08/15/2024*

     1,508,000        1,519,310  
             


Metal - Copper — 0.2%

 

Freeport-McMoRan Copper & Gold, Inc.
Company Guar. Notes
3.88% due 03/15/2023

     1,708,000        1,683,200  
             


Metal - Iron — 0.2%

 

Cleveland-Cliffs, Inc.
Company Guar. Notes
5.75% due 03/01/2025

     1,624,000        1,587,460  
             


Multimedia — 0.2%

 

E.W. Scripps Co.
Company Guar. Notes
5.13% due 05/15/2025*

     1,315,000        1,265,687  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Multimedia (continued)

 

Time Warner, Inc.
Company Guar. Notes
4.85% due 07/15/2045

   $ 236,000      $ 222,577  

Warner Media LLC
Company Guar. Notes
1.95% due 09/15/2023

   EUR 550,000        648,882  
             


                2,137,146  
             


Networking Products — 0.0%

 

Cisco Systems, Inc.
Senior Notes
2.20% due 02/28/2021

     382,000        378,202  
             


Office Supplies & Forms — 0.1%

 

Avery Dennison Corp.
Senior Notes
4.88% due 12/06/2028

     401,000        414,964  
             


Oil Companies - Exploration & Production — 1.4%

 

Anadarko Petroleum Corp.
Senior Notes
6.45% due 09/15/2036

     231,000        259,948  

Apache Corp.
Senior Notes
4.38% due 10/15/2028

     96,000        94,374  

Callon Petroleum Co.
Company Guar. Notes
6.38% due 07/01/2026

     1,460,000        1,460,000  

Chaparral Energy, Inc.
Senior Notes
8.75% due 07/15/2023*

     1,725,000        1,086,750  

Extraction Oil & Gas, Inc.
Company Guar. Notes
5.63% due 02/01/2026*

     1,700,000        1,411,000  

Hilcorp Energy I LP/Hilcorp Finance Co.
Senior Notes
5.00% due 12/01/2024*

     1,929,000        1,854,251  

Lonestar Resources America, Inc.
Company Guar. Notes
11.25% due 01/01/2023*

     1,498,000        1,460,550  

Marathon Oil Corp.
Senior Notes
6.60% due 10/01/2037

     147,000        169,574  

Noble Energy, Inc.
Senior Notes
4.95% due 08/15/2047

     466,000        436,019  

QEP Resources, Inc.
Senior Notes
5.63% due 03/01/2026#

     1,169,000        1,095,937  

Sanchez Energy Corp.
Company Guar. Notes
6.13% due 01/15/2023

     782,000        118,278  

Southwestern Energy Co.
Company Guar. Notes
7.50% due 04/01/2026

     1,250,000        1,296,875  

WildHorse Resource Development Corp.
Company Guar. Notes
6.88% due 02/01/2025(6)

     1,574,000        1,595,642  
             


                12,339,198  
             


Oil Companies - Integrated — 0.1%

 

BP Capital Markets America, Inc.
Company Guar. Notes
3.25% due 05/06/2022

     265,000        266,997  
 

 

99


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Oil Companies - Integrated (continued)

 

BP Capital Markets America, Inc.
Company Guar. Notes
4.23% due 11/06/2028

   $ 314,000      $ 330,311  

Chevron Corp.
Senior Notes
2.90% due 03/03/2024

     367,000        365,453  
             


                962,761  
             


Oil Field Machinery & Equipment — 0.4%

 

Forum Energy Technologies, Inc.
Company Guar. Notes
6.25% due 10/01/2021

     1,409,000        1,236,398  

Hi-Crush Partners LP
Senior Notes
9.50% due 08/01/2026*#

     2,620,000        2,010,850  
             


                3,247,248  
             


Oil - Field Services — 0.6%

 

Apergy Corp.
Company Guar. Notes
6.38% due 05/01/2026

     1,016,000        1,014,730  

Calfrac Holdings LP
Senior Notes
8.50% due 06/15/2026*

     1,455,000        1,076,700  

Nine Energy Service, Inc.
Senior Notes
8.75% due 11/01/2023*

     745,000        745,000  

Pioneer Energy Services Corp.
Company Guar. Notes
6.13% due 03/15/2022

     1,322,000        813,030  

Schlumberger Holdings Corp.
Senior Notes
3.75% due 05/01/2024*

     282,000        283,401  

USA Compression Partners LP/USA Compression Finance Corp.
Company Guar. Notes
6.88% due 04/01/2026

     1,230,000        1,251,525  

USA Compression Partners LP/USA Compression Finance Corp.
Senior Notes
6.88% due 09/01/2027*

     312,000        318,240  
             


                5,502,626  
             


Paper & Related Products — 0.1%

 

Domtar Corp.
Company Guar. Notes
6.75% due 02/15/2044

     515,000        509,468  

Georgia-Pacific LLC
Senior Notes
3.73% due 07/15/2023*

     473,000        478,086  

Georgia-Pacific LLC
Company Guar. Notes
5.40% due 11/01/2020*

     139,000        144,037  
             


                1,131,591  
             


Petrochemicals — 0.0%

 

Chevron Phillips Chemical Co. LLC/Chevron Phillips Chemical Co. LP
Senior Notes
3.30% due 05/01/2023*

     157,000        156,372  
             


Pharmacy Services — 0.1%

 

Cigna Corp.
Company Guar. Notes
4.80% due 08/15/2038*

     277,000        275,234  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Pharmacy Services (continued)

 

CVS Health Corp.
Senior Notes
4.78% due 03/25/2038

   $ 495,000      $ 480,363  

CVS Health Corp.
Senior Notes
5.05% due 03/25/2048

     143,000        141,400  

CVS Pass-Through Trust
Pass-Through Certs.
4.70% due 01/10/2036*

     99,568        100,155  

CVS Pass-Through Trust
Pass-Through Certs.
5.77% due 01/10/2033*

     62,073        66,268  

CVS Pass-Through Trust
Pass-Through Certs.
5.93% due 01/10/2034*

     134,459        145,577  
             


                1,208,997  
             


Pipelines — 1.9%

 

Antero Midstream Partners LP/Antero Midstream Finance Corp.
Senior Notes
5.75% due 03/01/2027*

     756,000        761,670  

Cheniere Corpus Christi Holdings LLC
Senior Sec. Notes
5.88% due 03/31/2025

     60,000        63,901  

Cheniere Corpus Christi Holdings LLC
Senior Sec. Notes
7.00% due 06/30/2024

     1,955,000        2,165,162  

Enable Midstream Partners LP
Senior Notes
4.95% due 05/15/2028

     230,000        228,457  

Energy Transfer Equity LP
Senior Sec. Notes
4.25% due 03/15/2023

     1,489,000        1,507,910  

Energy Transfer Operating LP
Company Guar. Notes
4.50% due 04/15/2024

     228,000        234,373  

Energy Transfer Operating LP
Company Guar. Notes
5.25% due 04/15/2029

     250,000        260,765  

Energy Transfer Operating LP
Company Guar. Notes
6.25% due 04/15/2049

     191,000        204,971  

Energy Transfer Partners LP
Company Guar. Notes
4.90% due 03/15/2035

     72,000        67,131  

EnLink Midstream Partners LP
Senior Notes
4.85% due 07/15/2026

     107,000        104,726  

EnLink Midstream Partners LP
Senior Notes
5.05% due 04/01/2045

     18,000        15,210  

Enterprise Products Operating LLC
Company Guar. Notes
4.80% due 02/01/2049

     267,000        271,399  

Genesis Energy LP/Genesis Energy Finance Corp.
Company Guar. Notes
5.63% due 06/15/2024

     1,403,000        1,304,804  

Genesis Energy LP/Genesis Energy Finance Corp.
Company Guar. Notes
6.00% due 05/15/2023

     678,000        679,688  

Holly Energy Partners LP/Holly Energy Finance Corp.
Company Guar. Notes
6.00% due 08/01/2024*

     1,252,000        1,283,300  
 

 

100


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Pipelines (continued)

 

Kinder Morgan Energy Partners LP
Company Guar. Notes
4.30% due 05/01/2024

   $ 288,000      $ 296,349  

Kinder Morgan Energy Partners LP
Company Guar. Notes
6.95% due 01/15/2038

     113,000        135,115  

Kinder Morgan, Inc.
Company Guar. Notes
1.50% due 03/16/2022

   EUR  1,090,000        1,275,403  

Magellan Midstream Partners LP
Senior Notes
4.85% due 02/01/2049

     215,000        218,357  

MPLX LP
Senior Notes
4.00% due 03/15/2028

     274,000        264,611  

MPLX LP
Senior Notes
4.13% due 03/01/2027

     146,000        143,155  

MPLX LP
Senior Notes
5.50% due 02/15/2049

     455,000        465,126  

NGPL PipeCo LLC
Senior Notes
4.38% due 08/15/2022*

     297,000        299,970  

SemGroup Corp./Rose Rock Finance Corp.
Company Guar. Notes
5.63% due 07/15/2022

     2,179,000        2,121,801  

Summit Midstream Holdings LLC/Summit Midstream Finance Corp.
Company Guar. Notes
5.50% due 08/15/2022

     1,743,000        1,725,570  

Western Gas Partners LP
Senior Notes
4.65% due 07/01/2026

     254,000        252,242  

Williams Cos., Inc.
Senior Notes
5.75% due 06/24/2044

     273,000        287,572  
             


                16,638,738  
             


Platinum — 0.1%

 

Stillwater Mining Co.
Company Guar. Notes
7.13% due 06/27/2025

     530,000        504,740  
             


Poultry — 0.2%

 

Pilgrim’s Pride Corp.
Company Guar. Notes
5.88% due 09/30/2027*#

     1,990,000        1,955,175  
             


Publishing - Books — 0.2%

 

McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance
Senior Notes
7.88% due 05/15/2024*#

     1,680,000        1,352,400  
             


Radio — 0.2%

 

Sirius XM Radio, Inc.
Company Guar. Notes
5.38% due 07/15/2026*

     1,280,000        1,283,200  
             


Real Estate Investment Trusts — 2.0%

 

American Tower Corp.
Senior Notes
1.95% due 05/22/2026

   EUR  400,000        460,121  

American Tower Corp.
Senior Notes
4.00% due 06/01/2025

     249,000        251,430  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Real Estate Investment Trusts (continued)

 

Columbia Property Trust Operating Partnership LP
Company Guar. Notes
4.15% due 04/01/2025

   $ 335,000      $ 330,616  

Crown Castle International Corp.
Senior Notes
5.20% due 02/15/2049

     257,000        256,268  

CTR Partnership LP/CareTrust Capital Corp.
Company Guar. Notes
5.25% due 06/01/2025

     1,362,000        1,368,810  

ERP Operating LP
Senior Notes
4.15% due 12/01/2028

     194,000        201,537  

ESH Hospitality, Inc.
Company Guar. Notes
5.25% due 05/01/2025*

     1,990,000        1,980,050  

GEO Group, Inc.
Company Guar. Notes
5.13% due 04/01/2023

     1,045,000        992,750  

GEO Group, Inc.
Company Guar. Notes
5.88% due 10/15/2024

     1,020,000        966,450  

GLP Capital LP/GLP Financing II, Inc.
Company Guar. Notes
5.38% due 04/15/2026

     1,035,000        1,066,423  

Iron Mountain, Inc.
Company Guar. Notes
4.88% due 09/15/2027*

     1,290,000        1,220,663  

iStar, Inc.
Senior Notes
5.25% due 09/15/2022

     1,385,000        1,357,300  

iStar, Inc.
Senior Notes
6.00% due 04/01/2022

     616,000        615,230  

MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc.
Company Guar. Notes
5.75% due 02/01/2027*

     555,000        568,181  

MPT Operating Partnership LP/MPT Finance Corp.
Company Guar. Notes
5.00% due 10/15/2027

     1,364,000        1,353,770  

Sabra Health Care LP
Company Guar. Notes
5.13% due 08/15/2026

     1,575,000        1,496,619  

Simon Property Group LP
Senior Notes
4.13% due 12/01/2021

     327,000        335,534  

Starwood Property Trust, Inc.
Senior Notes
4.75% due 03/15/2025

     2,250,000        2,188,800  
             


                17,010,552  
             


Real Estate Management/Services — 0.5%

 

Kennedy-Wilson, Inc.
Company Guar. Notes
5.88% due 04/01/2024

     2,006,000        1,960,865  

Newmark Group, Inc.
Senior Notes
6.13% due 11/15/2023*

     1,269,000        1,275,821  

Realogy Group LLC/Realogy Co-Issuer Corp.
Company Guar. Notes
4.88% due 06/01/2023*#

     1,554,000        1,406,370  
             


                4,643,056  
             


 

 

101


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Real Estate Operations & Development — 0.2%

 

Greystar Real Estate Partners LLC
Senior Sec. Notes
5.75% due 12/01/2025*

   $ 1,310,000      $ 1,316,262  
             


Rental Auto/Equipment — 0.3%

 

Ahern Rentals, Inc.
Sec. Notes
7.38% due 05/15/2023*

     1,469,000        1,355,153  

Jurassic Holdings III, Inc.
Sec. Notes
6.88% due 02/15/2021*#

     1,479,000        1,379,892  
             


                2,735,045  
             


Retail - Appliances — 0.2%

 

Conn’s, Inc.
Company Guar. Notes
7.25% due 07/15/2022

     1,917,000        1,801,980  
             


Retail - Automobile — 0.2%

 

AutoNation, Inc.
Company Guar. Notes
3.50% due 11/15/2024

     308,000        288,775  

Lithia Motors, Inc.
Company Guar. Notes
5.25% due 08/01/2025*

     1,325,000        1,311,750  
             


                1,600,525  
             


Retail - Building Products — 0.1%

 

Home Depot, Inc.
Senior Notes
4.50% due 12/06/2048

     419,000        443,189  
             


Retail - Discount — 0.1%

 

Wal-Mart Stores, Inc.
Senior Notes
2.55% due 04/11/2023

     701,000        694,854  
             


Retail - Drug Store — 0.0%

 

Walgreens Boots Alliance, Inc.
Senior Notes
4.80% due 11/18/2044

     154,000        143,815  
             


Retail - Mail Order — 0.1%

 

QVC, Inc.
Senior Sec. Notes
4.85% due 04/01/2024

     672,000        676,516  
             


Retail - Office Supplies — 0.3%

 

Staples, Inc.
Company Guar. Notes
8.50% due 09/15/2025*

     2,315,000        2,268,700  
             


Retail - Pawn Shops — 0.1%

 

FirstCash, Inc.
Company Guar. Notes
5.38% due 06/01/2024*

     1,163,000        1,177,886  
             


Retail - Restaurants — 0.4%

 

Brinker International, Inc.
Company Guar. Notes
5.00% due 10/01/2024*

     1,208,000        1,162,700  

Darden Restaurants, Inc.
Senior Notes
4.55% due 02/15/2048

     351,000        320,841  

Golden Nugget, Inc.
Company Guar. Notes
8.75% due 10/01/2025*

     1,236,000        1,273,080  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Retail - Restaurants (continued)

 

McDonald’s Corp.
Senior Notes
4.45% due 09/01/2048

   $ 542,000      $ 527,281  
             


                3,283,902  
             


Rubber/Plastic Products — 0.0%

 

Venture Holdings Co. LLC
Company Guar. Notes
11.00% due 06/01/2007†(5)(6)(7)(8)

     25,000        0  
             


Satellite Telecom — 0.2%

 

Hughes Satellite Systems Corp.
Company Guar. Notes
6.63% due 08/01/2026

     1,684,000        1,656,635  
             


Savings & Loans/Thrifts — 0.2%

 

First Niagara Financial Group, Inc.
Sub. Notes
7.25% due 12/15/2021

     849,000        931,042  

New York Community Bancorp, Inc.
Sub. Notes
5.90% due 11/06/2028

     532,000        534,890  
             


                1,465,932  
             


Security Services — 0.2%

 

ADT Corp.
Senior Sec. Notes
4.13% due 06/15/2023

     1,701,000        1,669,106  
             


Semiconductor Equipment — 0.1%

 

Entegris, Inc.
Company Guar. Notes
4.63% due 02/10/2026*

     806,000        791,895  

Lam Research Corp.
Senior Notes
4.00% due 03/15/2029

     248,000        248,066  
             


                1,039,961  
             


Steel - Producers — 0.3%

 

Commercial Metals Co.
Senior Notes
5.75% due 04/15/2026

     1,169,000        1,148,543  

United States Steel Corp.
Senior Notes
6.88% due 08/15/2025

     1,560,000        1,536,600  
             


                2,685,143  
             


Telecommunication Equipment — 0.1%

 

Anixter, Inc.
Company Guar. Notes
6.00% due 12/01/2025*

     879,000        909,765  
             


Telephone - Integrated — 1.0%

 

AT&T, Inc.
Senior Notes
3.15% due 09/04/2036

   EUR  625,000        705,061  

AT&T, Inc.
Senior Notes
4.35% due 03/01/2029

     249,000        248,001  

AT&T, Inc.
Senior Notes
4.50% due 05/15/2035

     911,000        858,132  

AT&T, Inc.
Senior Notes
4.90% due 08/15/2037

     527,000        508,219  
 

 

102


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. CORPORATE BONDS & NOTES (continued)

 

Telephone - Integrated (continued)

 

CenturyLink, Inc.
Senior Notes
7.50% due 04/01/2024#

   $ 3,000,000      $ 3,173,437  

Citizens Communications Co.
Senior Notes
9.00% due 08/15/2031#

     1,835,000        1,009,250  

Frontier Communications Corp.
Senior Notes
7.63% due 04/15/2024

     2,350,000        1,327,750  

Verizon Communications, Inc.
Senior Bonds
2.88% due 01/15/2038

   EUR  330,000        392,103  

Verizon Communications, Inc.
Senior Notes
4.40% due 11/01/2034

     157,000        157,290  

Verizon Communications, Inc.
Senior Notes
5.25% due 03/16/2037

     563,000        612,876  
             


                8,992,119  
             


Television — 0.5%

 

Belo Corp.
Company Guar. Notes
7.75% due 06/01/2027

     1,530,000        1,663,875  

CBS Corp.
Company Guar. Notes
3.70% due 08/15/2024

     238,000        236,578  

Gray Television, Inc.
Company Guar. Notes
5.13% due 10/15/2024*

     1,100,000        1,095,875  

Gray Television, Inc.
Company Guar. Notes
5.88% due 07/15/2026*

     273,000        275,730  

Gray Television, Inc.
Senior Notes
7.00% due 05/15/2027*

     895,000        946,462  
             


                4,218,520  
             


Tools - Hand Held — 0.1%

 

Stanley Black & Decker, Inc.
Senior Notes
3.40% due 03/01/2026

     354,000        352,889  

Stanley Black & Decker, Inc.
Senior Notes
4.85% due 11/15/2048

     209,000        218,048  
             


                570,937  
      


Transport - Equipment & Leasing — 0.1%

 

GATX Corp.
Senior Notes
4.35% due 02/15/2024

     407,000        413,161  

GATX Corp.
Senior Notes
4.70% due 04/01/2029

     135,000        136,779  
             


                549,940  
             


Transport - Marine — 0.0%

 

Kirby Corp.
Senior Notes
4.20% due 03/01/2028

     261,000        255,472  
             


Transport - Rail — 0.1%

 

Kansas City Southern
Company Guar. Notes
4.70% due 05/01/2048

     220,000        219,818  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Transport - Rail (continued)

 

Norfolk Southern Corp.
Senior Notes
5.10% due 08/01/2118

   $ 348,000      $ 348,333  
             


                568,151  
             


Transport - Services — 0.0%

 

FedEx Corp.
Company Guar. Notes
4.95% due 10/17/2048

     215,000        213,320  
             


Transport - Truck — 0.0%

 

JB Hunt Transport Services, Inc.
Company Guar. Notes
3.88% due 03/01/2026

     354,000        353,195  
             


Trucking/Leasing — 0.1%

 

Penske Truck Leasing Co. LP/PTL Finance Corp.
Senior Notes
3.65% due 07/29/2021*

     257,000        258,485  

Penske Truck Leasing Co. LP/PTL Finance Corp.
Senior Notes
3.95% due 03/10/2025*

     435,000        428,491  
             


                686,976  
             


Total U.S. Corporate Bonds & Notes

                 

(cost $286,779,290)

              282,064,894  
      


FOREIGN CORPORATE BONDS & NOTES — 14.1%

 

Agricultural Chemicals — 0.4%

 

Consolidated Energy Finance SA
Senior Notes
6.88% due 06/15/2025*

     1,540,000        1,501,500  

Nutrien, Ltd.
Senior Notes
3.63% due 03/15/2024

     231,000        227,968  

OCI NV
Senior Sec. Notes
6.63% due 04/15/2023*

     1,279,000        1,323,765  
             


                3,053,233  
             


Airport Development/Maintenance — 0.1%

 

Mexico City Airport Trust
Senior Sec. Notes
4.25% due 10/31/2026

     1,300,000        1,191,138  
             


Auto/Truck Parts & Equipment-Original — 0.2%

 

Aptiv PLC
Aptive PLC
5.40% due 03/15/2049

     142,000        141,373  

Delphi Jersey Holdings PLC
Company Guar. Notes
5.00% due 10/01/2025*

     1,810,000        1,610,556  

Toyota Industries Corp.
Senior Notes
3.24% due 03/16/2023*

     523,000        522,027  
             


                2,273,956  
             


Banks - Commercial — 1.2%

 

AIB Group PLC
Senior Notes
4.75% due 10/12/2023*

     497,000        498,933  

Banco Bilbao Vizcaya Argentaria SA
Senior Notes
1.38% due 05/14/2025

   EUR  800,000        908,461  

Banco de Credito e Inversiones SA
Senior Notes
3.50% due 10/12/2027

     970,000        914,235  

Banco Internacional del Peru SAA Interbank
Senior Notes
3.38% due 01/18/2023

     1,000,000        979,000  
 

 

103


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

FOREIGN CORPORATE BONDS & NOTES (continued)

 

Banks - Commercial (continued)

 

Bank of Montreal
Senior Notes
3.30% due 02/05/2024

   $ 497,000      $ 495,634  

BPCE SA
Sub. Notes
4.63% due 07/18/2023

   EUR  1,100,000        1,431,784  

Canadian Imperial Bank of Commerce
Senior Notes
2.10% due 10/05/2020

     381,000        376,192  

Credit Suisse AG
Sub. Notes
5.75% due 09/18/2025

   EUR  1,145,000        1,399,928  

Danske Bank A/S
Senior Notes
0.88% due 05/22/2023

   EUR  650,000        718,919  

Danske Bank A/S
Senior Notes
5.38% due 01/12/2024*

     522,000        537,920  

ING Groep NV
Senior Notes
4.63% due 01/06/2026*

     220,000        226,922  

Intesa Sanpaolo SpA
Sub. Notes
5.71% due 01/15/2026*

     307,000        287,341  

Malayan Banking Bhd
Sub. Notes
3.91% due 10/29/2026

     550,000        545,380  

National Australia Bank, Ltd.
Senior Notes
3.63% due 06/20/2023

     456,000        461,453  

Standard Chartered PLC
Senior Notes
1.63% due 10/03/2027

   EUR  650,000        743,841  
             


                10,525,943  
             


Banks - Special Purpose — 0.1%

 

KFW
Government Guar. Notes
2.63% due 02/28/2024

     584,000        583,248  
             


Broadcast Services/Program — 0.0%

 

Fox Corp.
Company Guar. Notes
4.03% due 01/25/2024*

     353,000        360,297  
             


Building Societies — 0.1%

 

Nationwide Building Society
Senior Notes
1.50% due 03/08/2026

   EUR  725,000        816,854  

Nationwide Building Society
Sub. Notes
4.13% due 10/18/2032*

     279,000        254,818  
             


                1,071,672  
             


Building - Residential/Commercial — 0.2%

 

Mattamy Group Corp.
Senior Notes
6.50% due 10/01/2025*

     1,431,000        1,375,102  
             


Cable/Satellite TV — 1.0%

 

Altice Financing SA
Senior Sec. Notes
7.50% due 05/15/2026*

     2,170,000        2,099,475  

Altice France SA
Senior Sec. Notes
8.13% due 02/01/2027*

     419,000        421,095  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Cable/Satellite TV (continued)

 

Altice Luxembourg SA
Company Guar. Notes
7.63% due 02/15/2025*#

   $ 2,665,000      $ 2,366,853  

Charter Communications Operating LLC/Charter Communications Operating Capital
Senior Sec. Notes
5.05% due 03/30/2029

     369,000        376,896  

Comcast Corp.
Company Guar. Notes
4.70% due 10/15/2048

     264,000        274,669  

Numericable-SFR SA
Senior Sec. Notes
7.38% due 05/01/2026*

     1,470,000        1,442,437  

UPCB Finance IV, Ltd.
Senior Sec. Notes
5.38% due 01/15/2025*

     1,279,000        1,307,778  
             


                8,289,203  
             


Cellular Telecom — 0.3%

 

C&W Senior Financing Designated Activity Co.
Senior Notes
6.88% due 09/15/2027*

     1,654,000        1,620,920  

Millicom International Cellular SA
Senior Notes
6.00% due 03/15/2025

     510,000        518,287  

Millicom International Cellular SA
Senior Notes
6.63% due 10/15/2026*

     200,000        207,450  

SK Telecom Co., Ltd.
Senior Notes
3.75% due 04/16/2023*

     200,000        201,912  
             


                2,548,569  
             


Chemicals - Diversified — 0.8%

 

Braskem Netherlands Finance BV
Company Guar. Notes
4.50% due 01/10/2028*

     290,000        284,925  

CNAC HK Finbridge Co., Ltd.
Company Guar. Notes
4.88% due 03/14/2025

     1,300,000        1,348,572  

NOVA Chemicals Corp.
Senior Notes
5.00% due 05/01/2025*

     1,955,000        1,867,025  

Petkim Petrokimya Holding AS
Senior Notes
5.88% due 01/26/2023*

     930,000        883,500  

Solvay SA
Senior Notes
1.63% due 12/02/2022

   EUR  1,000,000        1,187,030  

Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc.
Company Guar. Notes
5.38% due 09/01/2025*

     1,415,000        1,330,100  
             


                6,901,152  
             


Computers - Memory Devices — 0.2%

 

Seagate HDD Cayman
Company Guar. Notes
4.75% due 01/01/2025

     1,385,000        1,332,496  
             


Consumer Products - Misc. — 0.1%

 

Controladora Mabe SA de CV
Company Guar. Notes
5.60% due 10/23/2028

     655,000        649,269  
             


 

 

104


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

FOREIGN CORPORATE BONDS & NOTES (continued)

 

Containers - Paper/Plastic — 0.2%

 

Intertape Polymer Group, Inc.
Senior Notes
7.00% due 10/15/2026*

   $ 1,490,000      $ 1,501,175  
             


Dialysis Centers — 0.2%

 

DaVita HealthCare Partners, Inc.
Company Guar. Notes
5.13% due 07/15/2024

     1,325,000        1,311,750  
             


Diamonds/Precious Stones — 0.1%

 

Petra Diamonds US Treasury PLC
Sec. Notes
7.25% due 05/01/2022

     520,000        483,600  
             


Diversified Banking Institutions — 1.2%

 

Bank of America Corp.
Senior Notes
4.27% due 07/23/2029

     196,000        201,313  

BNP Paribas SA
Senior Notes
3.80% due 01/10/2024*

     271,000        270,635  

BNP Paribas SA
Senior Notes
4.71% due 01/10/2025*

     405,000        417,117  

Credit Suisse Group AG
Senior Notes
1.25% due 07/17/2025

   EUR  750,000        850,041  

Deutsche Bank AG
Senior Notes
4.25% due 02/04/2021

     201,000        200,175  

Lloyds Banking Group PLC
Senior Notes
0.63% due 01/15/2024

   EUR  650,000        720,243  

Mitsubishi UFJ Financial Group, Inc.
Senior Notes
3.41% due 03/07/2024

     945,000        944,920  

Mizuho Financial Group, Inc.
Senior Notes
3.55% due 03/05/2023

     979,000        983,340  

Morgan Stanley
Senior Notes
4.43% due 01/23/2030

     301,000        311,070  

Royal Bank of Scotland Group PLC
Senior Notes
1.75% due 03/02/2026

   EUR  675,000        764,326  

Royal Bank of Scotland Group PLC
Senior Notes
2.50% due 03/22/2023

   EUR  750,000        889,937  

Royal Bank of Scotland Group PLC
Senior Notes
4.52% due 06/25/2024

     260,000        261,329  

UBS AG
Sub. Notes
4.75% due 02/12/2026

   EUR  875,000        1,060,255  

UBS Group Funding Switzerland AG
Company Guar. Bonds
1.25% due 09/01/2026

   EUR  850,000        966,601  

UBS Group Funding Switzerland AG
Company Guar. Notes
3.49% due 05/23/2023*

     828,000        825,798  

UniCredit SpA
Sub. Notes
5.86% due 06/19/2032*

     606,000        541,492  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Diversified Banking Institutions (continued)

 

UniCredit SpA
Senior Notes
6.57% due 01/14/2022*

   $ 377,000      $ 386,002  
             


                10,594,594  
             


Diversified Manufacturing Operations — 0.2%

 

Siemens Financieringsmaatschappij NV
Company Guar. Notes
2.20% due 03/16/2020*

     783,000        777,258  

Siemens Financieringsmaatschappij NV
Company Guar. Notes
2.88% due 03/10/2028#

   EUR  1,000,000        1,327,282  
             


                2,104,540  
             


Diversified Minerals — 0.3%

 

Anglo American Capital PLC
Company Guar. Notes
3.25% due 04/03/2023

   EUR  835,000        1,028,708  

FMG Resources August 2006 Pty, Ltd.
Company Guar. Notes
5.13% due 03/15/2023*

     1,550,000        1,546,125  
             


                2,574,833  
             


Diversified Operations — 0.1%

 

Grupo KUO SAB De CV
Senior Notes
5.75% due 07/07/2027

     720,000        699,674  
             


Electric - Generation — 0.3%

 

Electricite de France SA
Senior Notes
1.00% due 10/13/2026

   EUR  700,000        793,759  

Electricite de France SA
Senior Notes
4.88% due 09/21/2038*

     245,000        241,279  

Electricite de France SA
Senior Notes
5.00% due 09/21/2048*#

     200,000        196,742  

Greenko Investment Co.
Senior Sec. Notes
4.88% due 08/16/2023

     470,000        443,656  

SPIC Luxembourg Latin America Renewable Energy Investment Co. SARL
Company Guar. Notes
4.65% due 10/30/2023

     1,300,000        1,326,099  
             


                3,001,535  
             


Electric - Integrated — 0.6%

 

Capex SA
Senior Notes
6.88% due 05/15/2024

     900,000        794,250  

EDP Finance BV
Senior Notes
2.00% due 04/22/2025

   EUR  1,175,000        1,391,540  

EDP Finance BV
Senior Notes
3.63% due 07/15/2024*

     207,000        202,053  

Enel Finance International NV
Company Guar. Notes
3.63% due 05/25/2027*

     639,000        589,356  

Gas Natural Fenosa Finance BV
Company Guar. Notes
1.38% due 01/21/2025

   EUR  700,000        819,782  

Iberdrola Finanzas SA
Company Guar. Notes
1.00% due 03/07/2025

   EUR  1,100,000        1,269,474  
             


                5,066,455  
             


 

 

105


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

FOREIGN CORPORATE BONDS & NOTES (continued)

 

Finance - Commercial — 0.1%

 

Azure Orbit IV International Finance, Ltd.
Company Guar. Notes
3.75% due 01/25/2023

   $ 500,000      $ 494,443  

Unifin Financiera SAB de CV
Company Guar. Notes
7.25% due 09/27/2023

     520,000        514,805  
             


                1,009,248  
             


Finance - Leasing Companies — 0.1%

 

CDBL Funding 1
Company Guar. Notes
3.00% due 04/24/2023

     500,000        480,374  

ICBCIL Finance Co., Ltd.
Senior Notes
3.63% due 11/15/2027

     500,000        471,066  
             


                951,440  
             


Food - Meat Products — 0.2%

 

JBS USA LUX SA/JBS USA Finance, Inc.
Company Guar. Notes
5.88% due 07/15/2024*

     2,059,000        2,116,652  
             


Gambling (Non-Hotel) — 0.1%

 

LHMC Finco SARL
Senior Sec. Notes
7.88% due 12/20/2023*

     870,000        889,575  
             


Insurance - Life/Health — 0.0%

 

Athene Holding, Ltd.
Senior Notes
4.13% due 01/12/2028

     303,000        282,990  
             


Machinery - Farming — 0.1%

 

CNH Industrial Finance Europe SA
Company Guar. Notes
1.88% due 01/19/2026

   EUR 600,000        680,811  

CNH Industrial NV
Senior Notes
3.85% due 11/15/2027

     305,000        282,833  

CNH Industrial NV
Senior Notes
4.50% due 08/15/2023

     222,000        226,307  
             


                1,189,951  
             


Medical - Drugs — 0.7%

 

Bausch Health Cos., Inc.
Senior Sec. Notes
5.75% due 08/15/2027*

     371,000        374,246  

Bausch Health Cos., Inc.
Company Guar. Notes
5.88% due 05/15/2023*

     2,636,000        2,622,820  

Bayer Capital Corp BV
Company Guar. Notes
1.50% due 06/26/2026

   EUR 700,000        800,723  

Novartis Finance SA
Company Guar. Notes
1.63% due 11/09/2026

   EUR 900,000        1,096,694  

Shire Acquisitions Investments Ireland DAC
Company Guar. Notes
2.88% due 09/23/2023

     251,000        242,257  

Takeda Pharmaceutical Co., Ltd.
Senior Notes
4.40% due 11/26/2023*

     572,000        591,086  
             


                5,727,826  
             


Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Medical - Generic Drugs — 0.0%

 

Actavis Funding SCS
Company Guar. Notes
3.80% due 03/15/2025

   $ 209,000      $ 206,447  
             


Medical - Hospitals — 0.3%

 

HCA, Inc.
Company Guar. Notes
5.38% due 02/01/2025

     2,500,000        2,592,975  
             


Metal - Copper — 0.2%

 

First Quantum Minerals, Ltd.
Company Guar. Notes
6.50% due 03/01/2024*

     725,000        686,937  

First Quantum Minerals, Ltd.
Company Guar. Notes
7.25% due 04/01/2023*

     814,000        799,755  
             


                1,486,692  
             


Metal - Diversified — 0.2%

 

Chinalco Capital Holdings, Ltd.
Company Guar. Notes
4.25% due 04/21/2022

     1,300,000        1,261,862  

Glencore Canada Financial Corp.
Company Guar. Notes
7.38% due 05/27/2020

   GBP 300,000        423,488  
             


                1,685,350  
             


Oil & Gas Drilling — 0.3%

 

Noble Holding International, Ltd.
Company Guar. Notes
7.88% due 02/01/2026*

     1,007,000        941,545  

Shelf Drilling Holdings, Ltd.
Company Guar. Notes
8.25% due 02/15/2025*

     1,400,000        1,337,000  
             


                2,278,545  
             


Oil Companies - Exploration & Production — 0.5%

 

Anadarko Finance Co.
Company Guar. Notes
7.50% due 05/01/2031

     194,000        236,017  

Continental Resources, Inc.
Company Guar. Notes
4.50% due 04/15/2023

     257,000        261,931  

MEG Energy Corp.
Sec. Notes
6.50% due 01/15/2025*

     1,979,000        1,944,368  

Nostrum Oil & Gas Finance BV
Company Guar. Notes
7.00% due 02/16/2025*

     1,040,000        609,357  

Tengizchevroil Finance Co. International, Ltd.
Senior Sec. Notes
4.00% due 08/15/2026

     880,000        847,482  

Woodside Finance, Ltd.
Company Guar. Notes
4.50% due 03/04/2029*

     273,000        271,639  
             


                4,170,794  
             


Oil Companies - Integrated — 0.7%

 

BP Capital Markets PLC
Company Guar. Notes
2.97% due 02/27/2026

   EUR  1,200,000        1,554,417  

Cenovus Energy, Inc.
Senior Notes
4.25% due 04/15/2027#

     239,000        227,719  
 

 

106


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

FOREIGN CORPORATE BONDS & NOTES (continued)

 

Oil Companies - Integrated (continued)

 

Cenovus Energy, Inc.
Senior Notes
5.20% due 09/15/2043

   $ 302,000      $ 276,225  

Pertamina Persero PT
Senior Notes
4.88% due 05/03/2022*

     600,000        617,480  

Petro-Canada
Senior Notes
5.95% due 05/15/2035

     154,000        173,205  

Petrobras Global Finance BV
Company Guar. Notes
6.00% due 01/27/2028

     470,000        476,815  

Petroleos Mexicanos
Company Guar. Notes
6.50% due 01/23/2029

     1,000,000        951,400  

Petroleos Mexicanos
Company Guar. Notes
6.63% due 06/15/2035

     2,200,000        1,991,000  
             


                6,268,261  
             


Oil - Field Services — 0.2%

 

KCA Deutag UK Finance PLC
Senior Sec. Notes
9.88% due 04/01/2022*

     1,793,000        1,429,917  
             


Paper & Related Products — 0.2%

 

Cascades, Inc.
Company Guar. Notes
5.50% due 07/15/2022*

     535,000        536,337  

Cascades, Inc.
Company Guar. Notes
5.75% due 07/15/2023*

     868,000        850,640  
             


                1,386,977  
             


Pharmacy Services — 0.0%

 

Cigna Corp.
Company Guar. Notes
4.90% due 12/15/2048*

     273,000        270,047  
             


Pipelines — 0.1%

 

Transportadora de Gas del Peru SA
Senior Notes
4.25% due 04/30/2028

     690,000        691,725  
             


Satellite Telecom — 0.8%

 

Inmarsat Finance PLC
Company Guar. Notes
6.50% due 10/01/2024*

     1,570,000        1,562,150  

Intelsat Jackson Holdings SA
Company Guar. Notes
5.50% due 08/01/2023#

     3,482,000        3,177,325  

Intelsat Jackson Holdings SA
Company Guar. Notes
8.50% due 10/15/2024*

     685,000        691,644  

Telesat Canada/Telesat LLC
Company Guar. Notes
8.88% due 11/15/2024*

     1,457,000        1,566,275  
             


                6,997,394  
             


Security Services — 0.1%

 

Garda World Security Corp.
Senior Notes
8.75% due 05/15/2025*

     1,275,000        1,220,813  
             


Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Semiconductor Components - Integrated Circuits — 0.0%

 

NXP BV/NXP Funding LLC
Company Guar. Notes
4.88% due 03/01/2024*

   $ 283,000      $ 290,918  
             


Special Purpose Entity — 0.0%

 

Hellas Telecommunications Luxembourg II SCA
Sub. Notes
8.46% due 01/15/2015*†(5)(6)(7)(8)

     560,000        0  
             


SupraNational Banks — 0.0%

 

International Bank for Reconstruction & Development
Senior Notes
3.13% due 11/20/2025

     332,000        341,503  
             


Telephone - Integrated — 0.4%

 

Orange SA
Senior Notes
1.38% due 03/20/2028

   EUR  400,000        454,488  

Orange SA
Senior Notes
1.88% due 09/12/2030

   EUR  600,000        695,846  

Telecom Italia Capital SA
Company Guar. Notes
7.72% due 06/04/2038

     231,000        236,775  

Telefonica Emisiones SA
Company Guar. Notes
5.52% due 03/01/2049

     530,000        529,206  

Telefonica Emisiones SAU
Company Guar. Notes
2.93% due 10/17/2029

   EUR  700,000        874,156  

Telefonica Emisiones SAU
Company Guar. Notes
4.67% due 03/06/2038

     562,000        514,513  
             


                3,304,984  
             


Transport - Equipment & Leasing — 0.3%

 

Avolon Holdings Funding, Ltd.
Company Guar. Notes
5.13% due 10/01/2023*

     1,775,000        1,792,750  

Avolon Holdings Funding, Ltd.
Company Guar. Notes
5.25% due 05/15/2024*

     374,000        383,350  
             


                2,176,100  
             


Transport - Marine — 0.2%

 

PT Pelabuhan Indonesia II
Senior Notes
4.25% due 05/05/2025#*

     475,000        470,511  

PT Pelabuhan Indonesia II
Senior Notes
4.25% due 05/05/2025

     1,650,000        1,634,408  
             


                2,104,919  
             


Transport - Rail — 0.3%

 

Canadian National Railway Co.
Senior Notes
2.85% due 12/15/2021

     173,000        172,273  

Canadian Pacific Railway Co.
Senior Notes
6.13% due 09/15/2115

     177,000        205,806  

Kazakhstan Temir Zholy Finance BV
Company Guar. Notes
6.95% due 07/10/2042

     1,700,000        1,946,595  
             


                2,324,674  
             


 

 

107


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

FOREIGN CORPORATE BONDS & NOTES (continued)

 

Transport - Services — 0.1%

 

Rumo Luxembourg SARL
Company Guar. Notes
7.38% due 02/09/2024

   $ 870,000      $ 933,771  
             


Total Foreign Corporate Bonds & Notes

 

(cost $124,305,008)

              121,823,922  
      


FOREIGN GOVERNMENT OBLIGATIONS — 11.0%

 

Sovereign — 10.9%

 

Abu Dhabi Government
Senior Notes
3.13% due 10/11/2027

     2,900,000        2,823,933  

Arab Republic of Egypt
Senior Notes
7.60% due 03/01/2029*

     1,200,000        1,229,400  

Arab Republic of Egypt
Senior Notes
8.50% due 01/31/2047

     4,750,000        4,859,744  

Dominican Republic
Senior Bonds
6.85% due 01/27/2045#

     3,600,000        3,744,000  

Dominican Republic
Senior Bonds
6.88% due 01/29/2026*

     400,000        433,500  

Federal Republic of Nigeria
Senior Notes
7.14% due 02/23/2030*

     1,300,000        1,295,177  

Federal Republic of Nigeria
Senior Notes
7.63% due 11/28/2047

     1,650,000        1,600,500  

Gabonese Republic
Bonds
6.38% due 12/12/2024

     1,000,000        963,920  

Government of Jamaica
Senior Notes
6.75% due 04/28/2028

     1,650,000        1,826,270  

Government of Mongolia
Senior Notes
5.63% due 05/01/2023

     1,000,000        1,008,622  

Government of Ukraine
Senior Notes
7.38% due 09/25/2032*

     2,150,000        1,851,842  

Government of Ukraine
Senior Notes
7.75% due 09/01/2022

     700,000        680,750  

Government of Ukraine
Senior Notes
7.75% due 09/01/2023

     1,200,000        1,150,375  

Government of Ukraine
Senior Notes
7.75% due 09/01/2025

     700,000        651,686  

Kingdom of Jordan
Senior Notes
5.75% due 01/31/2027*#

     900,000        878,652  

Kingdom of Saudi Arabia
Senior Notes
4.38% due 04/16/2029*

     1,800,000        1,835,964  

Kingdom of Spain
Bonds
5.15% due 10/31/2044*

   EUR  350,000        619,753  

Oriental Republic of Uruguay
Senior Notes
4.38% due 01/23/2031

     3,621,999        3,692,628  

Republic of Argentina
Senior Notes
5.88% due 01/11/2028#

     1,995,000        1,556,100  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Sovereign (continued)

 

Republic of Argentina
Senior Notes
6.88% due 01/26/2027

   $ 1,500,000      $ 1,245,000  

Republic of Argentina
Senior Notes
8.28% due 12/31/2033

     3,785,503        3,240,428  

Republic of Belarus
Senior Notes
6.88% due 02/28/2023

     1,000,000        1,041,620  

Republic of Belarus
Senior Notes
7.63% due 06/29/2027

     1,900,000        2,043,868  

Republic of Colombia
Senior Notes
4.38% due 07/12/2021

     500,000        511,250  

Republic of Colombia
Senior Notes
8.13% due 05/21/2024

     2,050,000        2,439,500  

Republic of Costa Rica
Senior Bonds
7.16% due 03/12/2045

     1,300,000        1,239,875  

Republic of El Salvador
Senior Notes
6.38% due 01/18/2027

     2,500,000        2,443,750  

Republic of El Salvador
Senior Notes
7.63% due 02/01/2041

     1,250,000        1,270,625  

Republic of Ghana
Senior Notes
7.63% due 05/16/2029

     1,400,000        1,355,936  

Republic of Ghana
Senior Notes
8.63% due 06/16/2049

     1,800,000        1,705,500  

Republic of Guatemala
Senior Notes
4.88% due 02/13/2028

     1,795,000        1,762,905  

Republic of Honduras
Senior Notes
6.25% due 01/19/2027

     2,800,000        2,894,556  

Republic of Hungary
Senior Notes
7.63% due 03/29/2041

     900,000        1,311,773  

Republic of Indonesia
Senior Notes
3.70% due 01/08/2022

     1,500,000        1,506,063  

Republic of Ivory Coast
Senior Notes
6.13% due 06/15/2033*

     1,900,000        1,762,250  

Republic of Ivory Coast
Senior Notes
6.13% due 06/15/2033

     1,300,000        1,205,750  

Republic of Kazakhstan
Senior Notes
3.88% due 10/14/2024

     1,800,000        1,838,304  

Republic of Kenya
Senior Notes
6.88% due 06/24/2024

     900,000        923,850  

Republic of Panama
Senior Notes
6.70% due 01/26/2036

     1,180,000        1,495,650  

Republic of Paraguay
Senior Notes
5.00% due 04/15/2026

     1,200,000        1,246,188  
 

 

108


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

FOREIGN GOVERNMENT OBLIGATIONS (continued)

 

Sovereign (continued)

 

Republic of Paraguay
Senior Notes
6.10% due 08/11/2044

   $ 1,500,000      $ 1,645,470  

Republic of Senegal
Bonds
6.25% due 05/23/2033

     2,200,000        2,090,000  

Republic of Senegal
Senior Notes
6.75% due 03/13/2048*

     1,700,000        1,548,020  

Republic of Sri Lanka
Senior Notes
6.83% due 07/18/2026*

     550,000        536,911  

Republic of Sri Lanka
Senior Notes
6.83% due 07/18/2026

     2,800,000        2,733,363  

Republic of Turkey
Senior Notes
6.88% due 03/17/2036

     1,570,000        1,507,200  

Republic of Turkey
Senior Notes
7.00% due 06/05/2020

     1,000,000        1,026,772  

Republic of Turkey
Senior Notes
7.38% due 02/05/2025

     1,000,000        1,046,000  

Republic of Turkey
Senior Notes
11.88% due 01/15/2030

     588,000        801,985  

State of Kuwait
Senior Notes
2.75% due 03/20/2022

     2,400,000        2,377,411  

State of Qatar
Senior Notes
4.50% due 04/23/2028

     3,000,000        3,168,750  

Sultanate of Oman
Senior Notes
6.75% due 01/17/2048

     5,700,000        5,145,333  

United Kingdom Gilt Treasury
Bonds
2.00% due 07/22/2020

   GBP 600,000        808,815  

United Kingdom Gilt Treasury
Bonds
3.50% due 01/22/2045

   GBP 250,000        444,679  

United Kingdom Gilt Treasury
Bonds
4.50% due 09/07/2034

   GBP  1,185,000        2,188,988  

United Mexican States
Senior Notes
4.50% due 04/22/2029

     255,000        256,660  

United Mexican States
Senior Bonds
4.75% due 03/08/2044

     216,000        204,770  
             


                94,718,584  
             


Sovereign Agency — 0.1%

 

Kommunalbanken AS
Senior Notes
2.75% due 02/05/2024*

     447,000        447,353  
             


Total Foreign Government Obligations

 

(cost $95,530,549)

              95,165,937  
      


U.S. GOVERNMENT AGENCIES — 23.4%

 

Federal Home Loan Mtg. Corp. — 4.6%

 

2.50% due 01/01/2028

     194,310        191,795  

2.50% due 04/01/2028

     417,348        411,948  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Federal Home Loan Mtg. Corp. (continued)

 

2.50% due 03/01/2031

   $ 270,538      $ 265,595  

2.50% due 10/01/2032

     3,661,584        3,594,679  

2.50% due 11/01/2032

     1,671,400        1,644,380  

3.00% due 04/01/2043

     420,606        413,628  

3.00% due 11/01/2046

     10,017,031        9,816,663  

3.50% due 03/01/2042

     280,776        283,391  

3.50% due 04/01/2042

     536,154        541,147  

3.50% due 08/01/2042

     469,093        473,461  

3.50% due 09/01/2043

     43,600        43,998  

3.50% due 07/01/2045

     4,844,601        4,870,234  

3.50% due 11/01/2047

     2,277,982        2,281,719  

3.50% due 03/01/2048

     12,443,737        12,490,313  

4.00% due 01/01/2046

     310,995        319,937  

4.00% due 01/01/2047

     75,197        77,568  

4.50% due 02/01/2020

     1,057        1,074  

4.50% due 08/01/2020

     1,290        1,311  

4.50% due 03/01/2023

     15,854        16,110  

5.00% due 05/01/2034

     56,974        61,189  

5.00% due 11/01/2043

     45,756        48,946  

5.50% due 06/01/2022

     12,290        12,623  

5.50% due 07/01/2035

     16,592        18,048  

6.00% due 03/01/2040

     45,406        49,888  

6.50% due 02/01/2036

     8,843        9,954  

Federal Home Loan Mtg. Corp. FRS

 

4.33% (6 ML+1.49%)
due 02/01/2037

     14,781        15,207  

4.52% (12 ML+1.89%)
due 11/01/2037

     135,391        142,437  

Federal Home Loan Mtg. Corp. REMIC

 

Series 4800, Class KG
3.50% due 11/15/2045(2)

     200,000        199,357  

Series 3820, Class DA
4.00% due 11/15/2035(2)

     844,551        849,465  

Federal Home Loan Mtg. Corp. REMIC FRS
Series 3572, Class JS
4.31% (6.80%-1 ML)
due 09/15/2039(2)(4)(10)

     142,254        16,070  

Federal Home Loan Mtg. Corp. Structured Agency Credit Risk FRS
Series 2015-HQA2, Class M2
5.29% (1 ML+2.80%)
due 05/25/2028(2)

     98,403        100,451  

Federal Home Loan Mtg. Corp., REMIC
Series 4740, Class BA
3.00% due 09/15/2045(2)

     487,242        485,439  
             


                39,748,025  
             


Federal National Mtg. Assoc. — 16.6%

 

2.50% due 12/01/2026

     630,462        622,027  

2.50% due 08/01/2031

     3,223,535        3,166,226  

2.50% due 02/01/2032

     1,223,365        1,201,212  

3.00% due 10/01/2027

     187,825        187,761  

3.00% due 12/01/2027

     221,320        221,419  

3.00% due 03/01/2030

     2,630,156        2,628,089  

3.00% due 10/01/2030

     339,156        338,740  

3.00% due 12/01/2042

     150,024        147,422  

3.00% due 08/01/2046

     10,048,732        9,840,170  

3.00% due 01/01/2047

     3,162,862        3,094,195  

3.00% due 04/01/2047

     4,285,021        4,191,870  

3.00% due 09/01/2048

     5,369,254        5,252,721  

3.50% due 09/01/2026

     175,282        178,215  

3.50% due 08/01/2027

     46,883        47,659  

3.50% due 10/01/2028

     193,942        197,819  

3.50% due 03/01/2033

     1,797,888        1,827,614  
 

 

109


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

U.S. GOVERNMENT AGENCIES (continued)

 

Federal National Mtg. Assoc. (continued)

 

3.50% due 08/01/2033

   $ 3,881,307      $ 3,945,481  

3.50% due 08/01/2042

     256,725        255,376  

3.50% due 10/01/2045

     483,280        485,530  

3.50% due 11/01/2045

     395,258        396,792  

3.50% due 07/01/2046

     5,004,978        5,028,277  

3.50% due 01/01/2047

     831,121        833,791  

3.50% due 12/01/2047

     22,568,147        22,615,142  

3.50% due 04/01/2048

     10,626,416        10,641,642  

3.50% due March 15 TBA

     2,420,000        2,458,710  

3.50% due March 30 TBA

     3,080,000        3,081,444  

4.00% due 11/01/2025

     90,639        93,307  

4.00% due 03/01/2039

     4,200,000        4,312,833  

4.00% due 12/01/2040

     32,056        32,971  

4.00% due 01/01/2043

     1,972,366        2,033,680  

4.00% due 10/01/2043

     525,476        540,268  

4.00% due 10/01/2044

     263,283        269,794  

4.00% due 02/01/2045

     2,878,061        2,970,247  

4.00% due 06/01/2046

     611,437        625,734  

4.00% due 01/01/2047

     24,643        25,210  

4.00% due 05/01/2047

     635,700        650,242  

4.00% due 07/01/2047

     4,314,457        4,412,826  

4.00% due 08/01/2047

     7,803,692        7,981,015  

4.00% due 06/01/2048

     4,109,383        4,208,135  

4.00% due 01/01/2049

     3,987,636        4,067,675  

4.00% due 03/01/2049

     4,000,000        4,080,288  

4.50% due 06/01/2019

     552        561  

4.50% due 03/01/2042

     249,611        261,526  

4.50% due 08/01/2045

     3,962,154        4,189,798  

4.50% due 11/01/2047

     2,455,357        2,543,553  

4.50% due 10/01/2048

     2,289,167        2,370,328  

4.50% due 11/01/2048

     4,901,271        5,076,441  

5.00% due 01/01/2023

     21,339        21,745  

5.00% due 04/01/2023

     21,917        22,442  

5.00% due 03/01/2037

     7,005        7,349  

5.00% due 05/01/2040

     180,880        193,671  

5.00% due 06/01/2040

     55,810        59,756  

5.00% due 07/01/2040

     19,637        21,019  

5.00% due 02/01/2045

     528,150        565,527  

5.50% due 08/01/2037

     214,026        232,839  

5.50% due 06/01/2038

     28,051        30,369  

6.00% due 02/01/2032

     3,077        3,308  

6.00% due 10/01/2034

     118        127  

6.00% due 09/01/2038

     52,729        58,013  

6.00% due 11/01/2038

     15,473        17,043  

6.00% due 06/01/2040

     13,027        14,350  

6.50% due 11/01/2037

     40,259        45,744  

Federal National Mtg. Assoc. FRS

 

4.27% (6 ML+1.54%)
due 09/01/2035

     108,459        112,126  

4.31% (12 ML+1.66%)
due 07/01/2039

     90,255        93,994  

4.31% (1 Yr USTYCR+2.26%)
due 11/01/2036

     47,591        50,077  

4.34% (12 ML+1.57%)
due 05/01/2037

     24,963        25,986  

4.53% (1 Yr USTYCR+2.21%)
due 10/01/2035

     113,826        119,549  

4.57% (12 ML+1.82%)
due 10/01/2040

     26,790        28,004  

4.58% (12 ML+1.91%)
due 08/01/2035

     80,516        84,681  

4.66% (12 ML+1.76%)
due 05/01/2040

     114,600        119,918  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Federal National Mtg. Assoc. (continued)

 

4.67% (12 ML+1.83%)
due 10/01/2040

   $ 67,114      $ 70,056  

Federal National Mtg. Assoc. REMIC
Series 2017-100, Class NP
3.00% due 12/25/2047(2)

     1,156,650        1,129,215  

Series 2017-94, Class DA
3.00% due 06/25/2045(2)

     2,083,234        2,068,981  

Series 2018-27, Class EA
3.00% due 05/25/2048(2)

     2,786,755        2,724,430  

Series 2018-35, Class CD
3.00% due 05/25/2048(2)

     1,419,912        1,380,400  
             


                142,932,495  
             


Government National Mtg. Assoc. — 2.2%

3.00% due 03/20/2046

     385,162        381,309  

3.00% due 05/20/2046

     5,527,400        5,471,210  

3.50% due 03/20/2047

     440,492        444,920  

4.00% due 05/20/2048

     4,664,819        4,792,233  

4.50% due 10/20/2045

     4,292,094        4,503,428  

4.50% due 04/20/2047

     3,363,467        3,499,930  
             


                19,093,030  
             


Total U.S. Government Agencies

 

(cost $202,673,983)

              201,773,550  
      


U.S. GOVERNMENT TREASURIES — 5.4%

United States Treasury Bonds — 0.1%

3.00% due 08/15/2048

     200,000        196,531  

3.38% due 11/15/2048

     660,000        697,641  
             


                894,172  
             


United States Treasury Notes — 5.3%

1.38% due 08/31/2020

     282,000        277,153  

1.63% due 08/31/2019

     1,000,000        995,430  

2.25% due 02/29/2020

     620,000        618,159  

2.25% due 11/15/2027

     10,000,000        9,661,328  

2.38% due 02/29/2024

     4,670,000        4,640,630  

2.38% due 04/30/2020

     1,000,000        997,969  

2.50% due 05/31/2020

     13,000,000        12,990,859  

2.50% due 01/31/2024#

     1,771,000        1,769,893  

2.63% due 02/15/2029

     670,000        664,897  

2.88% due 10/31/2020

     12,000,000        12,062,813  

2.88% due 11/30/2025

     500,000        508,145  

3.13% due 11/15/2028

     169,000        174,875  
             


                45,362,151  
             


Total U.S. Government Treasuries

 

(cost $46,247,237)

              46,256,323  
      


LOANS(11)(12)(13) — 5.4%

Aerospace/Defense - Equipment — 0.1%

TransDigm, Inc. FRS
BTL-F
4.99% (1 ML+2.50%)
due 06/09/2023

     433,907        428,122  
             


Auto Repair Centers — 0.1%

Mavis Tire Express Services Corp. FRS
Delayed Draw
5.74% (3ML+3.25%)
due 03/20/2025(18)

     51,217        49,936  

Mavis Tire Express Services Corp. FRS
Delayed Draw
5.74% (1ML+3.25%)
due 03/20/2025

     683        666  
 

 

110


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

LOANS (continued)

 

Auto Repair Centers (continued)

 

Mavis Tire Express Services Corp. FRS
1st Lien
5.74% (1 ML+3.25%)
due 03/20/2025

   $ 387,125      $ 377,447  

Wand NewCo 3, Inc. FRS
1st Lien
6.01% (3 ML+3.50%)
due 02/05/2026

     102,777        102,938  
             


                530,987  
             


Auto - Heavy Duty Trucks — 0.0%

Navistar Financial Corp. FRS
BTL-B
coupon TBD
due 07/30/2025

     84,444        84,127  

Navistar Financial Corp. FRS
6.25% (1 ML+3.75%)
due 07/30/2025

  

 

232,154

 

  

 

231,284

 

             


                315,411  
             


Broadcast Services/Program — 0.1%

NEP Group, Inc. FRS
BTL
coupon TBD
due 10/20/2025

     435,000        435,000  

Univision Communications, Inc. FRS
1st Lein
5.24% (1 ML+2.75%)
due 03/15/2024

     440,692        409,292  
             


                844,292  
             


Building & Construction Products - Misc. — 0.1%

Forterra Finance LLC FRS
BTL-B
5.49% (1 ML+3.00%)
due 10/25/2023

     905,734        838,559  
             


Building & Construction - Misc. — 0.0%

Verra Mobility Corp. FRS
1st Lien
6.24% (1 ML+3.75%)
due 02/28/2025

     417,880        419,447  
             


Building Products - Air & Heating — 0.0%

 

API Heat Transfer ThermaSys Corp. FRS
1st Lien
8.50% (USFRBPLR+3.00%)
due 05/03/2019

     382,225        344,002  
             


Building Products - Doors & Windows — 0.1%

 

CHI Doors Holding Corp. FRS
1st Lien
5.74% (1 ML+3.25%)
due 07/29/2022

     836,379        833,242  
             


Building - Maintenance & Services — 0.0%

 

Allied Universal Holdco LLC FRS
1st Lein
6.74% (1 ML+4.25%)
due 07/28/2022

     430,000        423,335  
             


Cable/Satellite TV — 0.2%

 

Altice France SA FRS
BTL-B13
6.49% (1 ML+4.00%)
due 08/14/2026

     443,888        431,681  
Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Cable/Satellite TV (continued)

 

CSC Holdings LLC FRS
BTL-B
4.99% (1 ML+2.50%)
due 01/25/2026

   $ 838,663      $ 831,674  

Unitymedia Finance LLC FRS
BTL-B
4.74% (1 ML+2.25%)
due 09/30/2025

     205,550        204,265  

Unitymedia Finance LLC FRS
coupon TBD
due 09/30/2025

     224,450        223,047  
             


                1,690,667  
             


Casino Services — 0.0%

 

Stars Group Holdings FRS
BTL
6.30% (3ML+3.50%)
due 07/10/2025

     141,806        141,857  

Stars Group Holdings FRS
BTL
coupon TBD
due 07/10/2025

     276,988        277,087  
             


                418,944  
             


Cellular Telecom — 0.1%

 

Sprint Communications, Inc. FRS
BTL-B
5.50% (1 ML+3.00%)
due 02/02/2024

     370,477        366,772  

Sprint Communicatons, Inc. FRS
BTL
coupon TBD
due 02/02/2024

     65,000        64,350  
             


                431,122  
             


Chemicals - Specialty — 0.1%

 

LTI Holdings, Inc. FRS
1st Lien
5.99% (1 ML+3.50%)
due 09/06/2025

     93,271        91,172  

LTI Holdings, Inc. FRS
BTL
coupon TBD
due 09/06/2025

     195,000        190,613  

LTI Holdings, Inc. FRS
2nd Lien
9.24% (1 ML+6.75%)
due 09/06/2026

     16,595        15,848  

LTI Holdings, Inc. FRS
BTL
coupon TBD
due 09/06/2026

     145,000        138,475  

Starfruit US HoldCo. LLC FRS
BTL-B
5.76% (1 ML+3.25%)
due 10/01/2025

     436,588        434,406  
             


                870,514  
             


Commercial Services - Finance — 0.1%

 

Financial & Risk US Holdings, Inc. FRS
BTL
6.24% (1 ML+3.75%)
due 10/01/2025

     442,159        435,066  

MoneyGram International, Inc. FRS
BTL-B
5.74% (1 ML+3.25%)
due 03/27/2020

     349,930        322,810  
 

 

111


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

LOANS (continued)

 

Commercial Services - Finance (continued)

 

Verscend Holding Corp. FRS
BTL-B
6.99% (1 ML+4.50%)
due 08/24/2025

   $ 86,701      $ 86,539  
      


                844,415  
             


Computer Data Security — 0.0%

 

McAfee LLC FRS
BTL-B1
6.24% (1 ML+3.75%)
due 09/30/2024

     425,000        425,664  
             


Computer Services — 0.1%

 

Alion Science & Tech Corp. FRS
BTL-B
6.99% (1 ML+4.50%)
due 08/19/2021

     460,658        459,218  
             


Computer Software — 0.1%

 

Rackspace Hosting, Inc. FRS
1st Lien
5.63% (3 ML+3.00%)
due 11/03/2023

     1,146        1,090  

Rackspace Hosting, Inc. FRS
1st Lien
5.74% (3 ML+3.00%)
due 11/03/2023

     450,362        428,407  

Vertafore, Inc. FRS
1st Lein
6.05% (3 ML+3.25%)
due 07/02/2025

     225,000        222,234  

Vertafore, Inc. FRS
2nd Lien
10.05% (3 ML+7.25%)
due 07/02/2026

     216,071        213,370  
             


                865,101  
             


Consulting Services — 0.0%

 

AlixPartners LLP FRS
BTL
5.24% (1 ML+2.75%)
due 04/04/2024

     219,442        218,893  

Stiphout Finance LLC FRS
1st Lien
5.49% (1 ML+3.00%)
due 10/26/2022

     78,148        76,195  
             


                295,088  
             


Containers - Metal/Glass — 0.1%

 

BWAY Corp. FRS
BTL
coupon TBD
due 04/03/2024

     446,000        436,968  
             


Containers - Paper/Plastic — 0.1%

 

Charter NEX US, Inc. FRS
1st Lien
coupon TBD
due 05/16/2024

     445,000        434,709  
             


Dialysis Centers — 0.0%

 

U.S. Renal Care, Inc. FRS
1st Lien
7.05% (3 ML+4.25%)
due 12/30/2022

     206,097        205,582  
             


Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

   

Disposable Medical Products — 0.0%

 

Sterigenics-Nordion Holdings LLC FRS
BTL
5.49% (1 ML+3.00%)
due 05/15/2022

   $ 428,909      $ 419,794  
             


Distribution/Wholesale — 0.1%

 

Univar USA, Inc. FRS
BTL-B3
4.74% (1 ML+2.25%)
due 07/01/2024

     336,115        335,359  

Univar USA, Inc. FRS
BTL
coupon TBD
due 07/01/2024

     98,600        98,378  
             


                433,737  
             


E-Commerce/Services — 0.1%

 

RentPath LLC FRS
2nd Lien
11.50% (1 ML+9.00%)
due 12/17/2022

     2,178,597        653,579  
             


Electronic Components - Misc. — 0.1%

 

AI Ladder Luxembourg Subco SARL FRS
BTL
coupon TBD
due 07/09/2025

     62,069        53,603  

Al Ladder Luxembourg Subco SARL FRS
BTL
7.24% (3 ML+4.50%)
due 07/09/2025

     373,722        374,561  
             


                428,164  
      


Electronic Components - Semiconductors — 0.0%

 

Bright Bidco BV FRS
BTL-B
5.99% (1 ML+3.50%)
due 06/30/2024

     136,061        110,663  

Bright Bidco BV FRS
BTL-B
6.30% (3 ML+3.50%)
due 06/30/2024

     283,939        230,937  
      


                341,600  
             


Enterprise Software/Service — 0.2%

 

Almonde, Inc. FRS
BTL-B
6.30% (3 ML+3.50%)
due 06/13/2024

     448,801        444,394  

Applied Systems, Inc. FRS
1st Lein
5.49% (1 ML+3.00%)
due 09/19/2024

     430,000        426,345  

Epicor Software Corp. FRS
1st Lien
coupon TBD
due 06/01/2022

     430,000        425,162  

Focus Financial Partners LLC FRS
BTL
5.74% (1 ML+3.25%)
due 08/05/2022

     406,526        406,425  

Sophia LP FRS
BTL-B
coupon TBD
due 09/30/2022

     430,000        428,387  
             


                2,130,713  
             


 

 

112


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

LOANS (continued)

 

Finance - Credit Card — 0.1%

 

Pi US Mergerco, Inc. FRS
1st Lien
5.99% (1 ML+3.50%)
due 12/20/2024

   $ 435,550      $ 430,650  
             


Finance - Investment Banker/Broker — 0.0%

 

Advisor Group, Inc. FRS
BTL
6.24% (1 ML+3.75%)
due 08/15/2025

     67,418        67,418  

Deerfield Holdings Corp. Acquisition FRS
BTL-B
5.74% (1 ML+3.25%)
due 02/13/2025

     283,985        278,660  
      


                346,078  
             


Human Resources — 0.1%

 

Team Health Holdings, Inc. FRS
1st Lien
5.24% (1 ML+2.75%)
due 02/06/2024

     1,271,764        1,150,946  
             


Insurance Brokers — 0.2%

 

Alliant Holdings Intermediate LLC FRS
BTL-B1
5.23% (1 ML+2.75%)
due 05/09/2025

     450,000        444,515  

HUB International, Ltd. FRS
BTL-B
5.38% (2 ML+2.75%)
due 04/25/2025

     1,121        1,111  

HUB International, Ltd. FRS
BTL-B
5.51% (3 ML+2.75%)
due 04/25/2025

     412,750        409,035  

HUB International, Ltd. FRS
BTL
coupon TBD
due 04/25/2025

     32,256        31,966  

USI, Inc. FRS
BTL
5.80% (3 ML+3.00%)
due 05/16/2024

     836,529        828,164  
      


                1,714,791  
             


Insurance - Multi-line — 0.1%

 

York Risk Services Holdings Corp. FRS
BTL-B
6.24% (1 ML+3.75%)
due 10/01/2021

     836,266        791,666  
      


Insurance - Property/Casualty — 0.1%

 

Asurion LLC FRS
BTL-B6
5.49% (1 ML+3.00%)
due 11/03/2023

     811,978        811,724  

Asurion LLC FRS
2nd Lien
8.99% (1 ML+6.50%)
due 08/04/2025

     16,737        16,995  

Sedgwick Claims Management Services, Inc. FRS
BTL
5.74% (1 ML+3.25%)
due 12/31/2025

     324,536        322,913  
             


                1,151,632  
             


Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Internet Financial Services — 0.1%

 

ION Trading Finance, Ltd. FRS
BTL
6.63% (2 ML+4.00%)
due 11/21/2024

   $ 451,566      $ 426,730  
             


Leisure Products — 0.1%

 

Hayward Industries, Inc. FRS
1st Lien
5.99% (1 ML+3.50%)
due 08/05/2024

     955,961        942,518  
             


Machinery - General Industrial — 0.1%

 

Duravant LLC FRS
1st Lien
6.05% (3 ML+3.25%)
due 07/19/2024

     836,550        803,088  

Shape Technologies Group, Inc. FRS
BTL
5.78% (3 ML+3.00%)
due 04/21/2025

     224,406        222,162  
             


                1,025,250  
             


Machinery - Pumps — 0.1%

 

STS Operating, Inc. FRS
BTL
6.74% (1 ML+4.25%)
due 12/11/2024

     464,830        457,858  

Titan Acquisition, Ltd. FRS
BTL
5.49% (1 ML+3.00%)
due 03/28/2025

     457,210        438,007  
             


                895,865  
             


Marine Services — 0.1%

 

Drew Marine Group, Inc. FRS
1st Lien
5.74% (1 ML+3.25%)
due 11/19/2020

     602,636        590,583  
             


Medical Products — 0.1%

 

Auris Luxembourg III SARL FRS
BTL
coupon TBD
due 02/27/2026

     51,251        51,230  

Greatbatch, Ltd. FRS
BTL-B
5.51% (1 ML+3.00%)
due 10/27/2022

     627,208        625,770  

VVC Holding Corp. FRS
BTL-B
7.20% (3 ML+4.50%)
due 02/11/2026

     141,234        139,556  
             


                816,556  
             


Medical - Drugs — 0.2%

 

Akorn, Inc. FRS
BTL-B
8.00% (1 ML+5.50%)
due 04/16/2021

     845,000        667,550  

Alphabet Holding Co., Inc. FRS
1st Lien
5.99% (1 ML+3.50%)
due 09/26/2024

     447,733        427,305  

Bausch Health Companies, Inc. FRS
BTL
5.26% (1 ML+2.75%)
due 11/27/2025

     241,591        240,505  
 

 

113


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

LOANS (continued)

 

Medical - Drugs (continued)

 

Valeant Pharmaceuticals International, Inc. FRS
BTL
5.51% (1 ML+3.00%)
due 06/02/2025

   $ 54,595      $ 54,622  
             


                1,389,982  
             


Medical - Generic Drugs — 0.1%

 

Alvogen Pharma US, Inc. FRS
BTL-B
7.24% (1 ML+4.75%)
due 04/02/2022

     421,933        416,131  

Amneal Pharmaceuticals LLC FRS
BTL-B
coupon TBD
due 05/04/2025

     434,000        433,458  
             


                849,589  
             


Medical - HMO — 0.1%

 

MultiPlan, Inc. FRS
BTL-B
5.55% (3 ML+2.75%)
due 06/07/2023

     777,234        768,814  
             


Metal Processors & Fabrication — 0.3%

 

CIRCOR International, Inc. FRS
1st Lien
6.00% (1 ML+3.50%)
due 12/11/2024

     797,798        779,183  

Crosby US Acquisition Corp. FRS
1st Lien
5.48% (1 ML+3.00%)
due 11/23/2020

     836,198        797,873  

Doncasters Group, Ltd. FRS
BTL
6.30% (3 ML+3.50%)
due 04/09/2020

     606,105        560,647  

Dynacast International LLC FRS
BTL
coupon TBD
due 01/28/2022

     196,444        193,498  
             


                2,331,201  
             


Oil & Gas Drilling — 0.0%

 

Seadrill Operating LP FRS
BTL
8.80% (3 ML+6.00%)
due 02/21/2021

     498,628        416,105  
             


Oil Companies - Exploration & Production — 0.1%

 

Osum Production Corp. FRS
BTL
8.30% (3 ML+5.50%)
due 07/28/2020(5)

     974,819        857,841  
             


Oil - Field Services — 0.1%

 

Lucid Energy Group II Borrower LLC FRS
1st Lien
coupon TBD
due 02/17/2025

     466,000        433,380  
             


Pipelines — 0.1%

 

Medallion Midland Acquisition LLC FRS
BTL
5.74% (1 ML+3.25%)
due 10/30/2024

     431,550        418,873  

Medallion Midland Acquisition LLC FRS
BTL
coupon TBD
due 10/30/2024

     10,968        10,646  
             


                429,519  
             


Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

                   

Publishing - Periodicals — 0.0%

 

Meredith Corp. FRS
BTL-B1
5.24% (1 ML+2.75%)
due 01/31/2025

   $ 211,556      $ 211,159  

Meredith Corp. FRS
coupon TBD
due 01/31/2025

     206,415        206,028  
             


                417,187  
             


Quarrying — 0.1%

 

US Silica Co. FRS
BTL-B
6.50% (1 ML+4.00%)
due 05/01/2025

     477,419        451,558  
             


Real Estate Management/Services — 0.0%

 

DTZ U. S. Borrower LLC FRS
BTL-B
5.74% (1 ML+3.25%)
due 08/21/2025

     257,789        255,856  
             


Resort/Theme Parks — 0.0%

 

SW Acquisitions Co., Inc. FRS
BTL-B5
5.49% (1 ML+3.00%)
due 03/31/2024

     430,486        426,397  
             


Retail - Hypermarkets — 0.1%

 

Smart & Final Stores LLC FRS
1st Lien
6.13% (3 ML+3.50%)
due 11/15/2022

     845,000        801,694  
             


Retail - Major Department Stores — 0.1%

 

Hudson’s Bay Co. FRS
BTL-B
5.75% (1 ML+3.25%)
due 09/30/2022

     130,007        127,326  

Hudson's Bay Co. FRS
coupon TBD
due 019/30/2022

     310,000        303,606  
             


                430,932  
             


Retail - Petroleum Products — 0.1%

 

EG America LLC FRS
BTL
6.81% (3 ML+4.00%)
due 02/07/2025

     838,664        812,980  
             


Retail - Restaurants — 0.1%

 

IRB Holding Corp. FRS
BTL-B
coupon TBD
due 02/05/2025

     445,000        441,106  
             


Retail - Sporting Goods — 0.1%

 

Bass Pro Group LLC FRS
BTL
7.49% (1 ML+5.00%)
due 09/25/2024

     836,529        833,915  
             


Retail - Vitamins & Nutrition Supplements — 0.1%

 

JP Intermediate B LLC FRS
BTL
8.24% (3 ML+5.50%)
due 11/20/2025

     1,297,633        1,235,995  
             


 

 

114


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

LOANS (continued)

 

Satellite Telecom — 0.1%

 

Intelsat Jackson Holdings SA FRS
BTL-B3
6.23% (1 ML+3.75%)
due 11/27/2023

   $ 435,000      $ 434,184  
             


Security Services — 0.0%

 

Prime Security Services Borrower LLC FRS
BTL-B1
5.24% (1 ML+2.75%)
due 05/02/2022

     420,896        419,406  
             


Soap & Cleaning Preparation — 0.1%

 

Diamond BC BV FRS
BTL
5.63% (2 ML+3.00%)
due 09/06/2024

     446,550        430,176  
             


Telecom Services — 0.1%

 

GTT Communications, Inc. FRS
BTL-B
5.24% (1 ML+2.75%)
due 05/31/2025

     422,875        402,965  

Sable International Finance, Ltd. FRS
BTL-B4
5.74% (1 ML+3.25%)
due 01/30/2026

     435,000        432,747  

West Corp. FRS
BTL-B1
5.99% (1 ML+3.50%)
due 10/10/2024

     996        937  

West Corp. FRS
BTL-B1
6.13% (3 ML+3.50%)
due 10/10/2024

     395,596        371,859  
             


                1,208,508  
             


Telecommunication Equipment — 0.0%

 

CommScope, Inc. FRS
BTL-B
coupon TBD
due 02/06/2026

     221,774        222,606  
             


Telephone - Integrated — 0.1%

 

CenturyLink, Inc. FRS
BTL-B
5.24% (1 ML+2.75%)
due 01/31/2025

     441,550        434,596  

Level 3 Financing, Inc. FRS
BTL-B
4.73% (1 ML+2.25%)
due 02/22/2024

     435,000        433,504  
             


                868,100  
             


Theaters — 0.1%

 

Cineworld, Ltd. FRS
BTL
4.99% (1 ML+2.50%)
due 02/28/2025

     418,724        415,583  

William Morris Endeavor Entertainment LLC FRS
BTL-B1
5.25% (1 ML+2.75%)
due 05/18/2025

     460,000        445,625  
             


                861,208  
             


Security Description    Shares/
Principal
Amount(9)
         
Value
(Note 2)
 

                   

Transport - Equipment & Leasing — 0.0%

 

IBC Capital, Ltd. FRS
1st Lien
6.55% (3 ML+3.75%)
due 09/11/2023

   $ 428,587      $ 419,480  
             


Transport - Truck — 0.1%

 

Pods LLC FRS
1st Lien
5.27% (1 ML+2.75%)
due 12/06/2024

     836,531        830,257  
             


Total Loans

                 

(cost $48,713,429)

              46,324,217  
      


COMMON STOCKS — 0.0%

 

Building Products - Air & Heating — 0.0%

 

API Heat Transfer, Inc.†(5)(6)(14)

     407,576        134,500  
      


Television — 0.0%

                 

ION Media Networks, Inc.†(5)(6)(14)

     316        260,348  
      


Total Common Stocks

                 

(cost $134,503)

              394,848  
      


PREFERRED SECURITIES — 0.0%

 

Building Products - Air & Heating — 0.0%

 

API Heat Transfer, Inc.
Class A
8.63%(5)(6)(14)

     86,869        86,869  
      


Electric - Distribution — 0.0%

 

Entergy Louisiana LLC
4.70%

     7,075        171,710  
      


Sovereign Agency — 0.0%

 

Federal Home Loan Mtg. Corp.
Series Z
7.88%

     2,642        24,994  
      


Total Preferred Securities

                 

(cost $304,537)

              283,573  
      


PREFERRED SECURITIES/CAPITAL SECURITIES — 1.5%

 

Banks - Commercial — 0.1%

 

Cooperatieve Rabobank UA
11.00% due 06/30/2019*(15)

     461,000        471,373  
             


Banks - Super Regional — 0.0%

 

Huntington Bancshares, Inc.
Series E
5.70% due 04/15/2023(15)

     154,000        148,225  

Wells Fargo Capital X
5.95% due 12/01/2086(6)

     138,000        148,695  
             


                296,920  
             


Diversified Banking Institutions — 0.3%

 

Bank of Nova Scotia
4.65% due 10/12/2022(15)

     440,000        402,050  

HSBC Holdings PLC
6.00% due 05/22/2027(15)

     349,000        339,839  

HSBC Holdings PLC
6.25% due 03/23/2023(15)

     470,000        468,825  

JPMorgan Chase & Co.
Series CC
4.63% due 11/01/2022#(15)

     7,000        6,489  

JPMorgan Chase & Co.
Series U
6.13% due 04/30/2024(15)

     502,000        522,080  

Royal Bank of Scotland Group PLC
8.00% due 08/10/2025(15)

     245,000        260,313  

Societe Generale SA
7.88% due 12/18/2023*#(15)

     551,000        570,285  
 

 

115


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

Security Description    Principal
Amount(9)
         
Value
(Note 2)
 

PREFERRED SECURITIES/CAPITAL SECURITIES (continued)

 

Diversified Banking Institutions (continued)

                 

UBS Group Funding Switzerland AG
7.00% due 01/31/2024*(15)

   $ 277,000      $ 278,939  
             


                2,848,820  
             


Electric - Generation — 0.1%

 

Electricite de France SA
4.25% due 01/29/2020(15)

   EUR 700,000        820,340  
             


Electric - Integrated — 0.1%

 

Dominion Resources, Inc.
5.75% due 10/01/2054

     139,000        139,035  

Gas Natural Fenosa Finance BV
3.38% due 04/24/2024(15)

   EUR 400,000        457,759  
             


                596,794  
             


Finance - Investment Banker/Broker — 0.0%

 

Lehman Brothers Holdings Capital Trust VII
Escrow Security
0.00%†(5)(6)

     101,000        10  
             


Finance - Other Services — 0.0%

 

National Rural Utilities Cooperative Finance Corp.
4.75% due 04/30/2043

     341,000        329,965  
             


Food - Dairy Products — 0.1%

 

Land O’Lakes Capital Trust I
7.45% due 03/15/2028*

     1,115,000        1,190,263  
             


Insurance - Life/Health — 0.4%

 

AG Insurance SA
6.75% due 03/21/2019(15)

     2,200,000        2,203,080  

Aviva PLC
6.13% due 07/05/2043

   EUR 400,000        522,817  

Prudential Financial, Inc.
5.63% due 06/15/2043

     357,000        370,387  

Prudential Financial, Inc.
5.70% due 09/15/2048

     149,000        145,928  
             


                3,242,212  
             


Insurance - Multi-line — 0.0%

 

Assurant, Inc.
7.00% due 03/27/2048

     342,000        335,160  
             


Metal - Diversified — 0.2%

 

China Minmetals Corp.
3.75% due 11/13/2022(15)

     1,300,000        1,234,845  
             


Pipelines — 0.1%

 

Energy Transfer Partners LP
6.25% due 02/15/2023(15)

     152,000        138,700  

EnLink Midstream Partners LP
6.00% due 12/15/2022(15)

     149,000        121,063  

Enterprise Products Operating LLC
5.25% due 08/16/2077

     110,000        100,869  

TransCanada Trust
5.30% due 03/15/2077

     198,000        184,140  

TransCanada Trust
5.63% due 05/20/2075

     139,000        134,135  
             


                678,907  
             


Water — 0.1%

 

Suez
3.00% due 06/23/2020(15)

   EUR 1,000,000        1,163,906  
             


Total Preferred Securities/Capital Securities

 

(cost $13,323,820)

              13,209,515  
      


Total Long-Term Investment Securities

 

(cost $835,555,190)

              825,018,723  
      


Security Description    Shares/
Principal
Amount(9)
        
Value
(Note 2)
 

SHORT-TERM INVESTMENT SECURITIES — 10.2%

 

Registered Investment Companies — 9.8%

 

State Street Institutional U.S. Government Money Market Fund, Premier Class 
2.35%(17)

     68,361,036     $ 68,361,036  

State Street Navigator Securities Lending Government Money Market Portfolio
2.43%(16)(17)

     16,668,518       16,668,518  
     


               85,029,554  
            


U.S. Government Treasuries — 0.4%

 

United States Treasury Bills
2.37% due 03/21/2019

   $ 3,000,000       2,996,090  
            


Total Short-Term Investment Securities

                

(cost $88,025,634)

             88,025,644  
     


TOTAL INVESTMENTS

                

(cost $923,580,824)(3)

     105.7     913,044,367  

Liabilities in excess of other assets

     (5.7     (49,501,103
    


 


NET ASSETS

     100.0   $ 863,543,264  
    


 



*

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, 2019, the aggregate value of these securities was $193,051,261 representing 22.4% 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)

See Note 5 for cost of investments on a tax basis.

(4)

Interest Only

(5)

Securities classified as Level 3 (see Note 2).

(6)

Illiquid security. At February 28, 2019, the aggregate value of these securities was $4,223,562 representing 0.5% of net assets.

(7)

Company has filed for bankruptcy protection.

(8)

Security in default of interest and principal at maturity.

(9)

Denominated in United States Dollars unless otherwise indicated.

(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, 2019.

(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 Offered 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)

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

 

 

116


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

  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, 2019, the Fund held the following restricted securities:

 

Name


  Acquisition
Date


    Shares

    Acquisition
Cost


    Value

    Value
per Share


    % of
Net Assets


 

Common Stock

                                               

ION Media Networks, Inc.

    3/5/2014       316     $ 3     $ 260,348     $ 823.89       0.03

API Heat Transfer, Inc.

    12/31/2018       407,576       134,500       134,500       0.33       0.02

Preferred Securities

                                               

API Heat Transfer, Inc. Class A

    12/31/2018       86,869       86,869       86,869       1.00       0.01
                           


         


                            $ 481,717               0.06
                           


         


 

(15)

Perpetual maturity — maturity date reflects the next call date.

(16)

At February 28, 2019, the Fund had loaned securities with a total value of $27,578,448. This was secured by collateral of $16,668,518, which was received in cash and subsequently invested in short-term investments currently valued at $16,668,518 as reported in the Portfolio of Investments. Additional collateral of $11,570,630 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, 2019


 

United States Treasury Notes/Bonds

   0.13% to 8.75%    07/15/2019 to 11/15/2045    $ 11,570,630  
(17)

The rate shown is the 7-day yield as of February 28, 2019.

(18)

All or a portion of this holding is subject to unfunded loan commitments (See Note 12).

(19)

Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.

 

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.

TBD—Senior loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, senior loans typically trade without accrued interest and therefore a coupon rate is not available prior to the settlement.

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, 2018 and unless noted otherwise, the dates are the original maturity dates.

 

Currency Legend

EUR—Euro Currency

GBP—British Pound

 

Index Legend

1 ML—1 Month USD LIBOR

2 ML—2 Month USD LIBOR

3 ML—3 Month USD LIBOR

6 ML—6 Month USD LIBOR

12 ML—12 Month USD LIBOR

1 Yr USTYCR—1 Year US Treasury Yield Curve Rate

USFRBPLR—US Federal Reserve Bank Prime Loan Rate Bank Term Loan

 
Forward Foreign Currency Contracts                
Counterparty    Contract to Deliver      In Exchange For      Delivery
Date
     Unrealized
Appreciation
     Unrealized
Depreciation
 

JPMorgan Chase Bank N.A

     EUR        32,257,600        USD        37,187,666        03/15/2019      $ 462,479      $  
       EUR        6,730,000        USD        7,695,357        05/09/2019               (2,117
       GBP        3,360,000        USD        4,320,043        03/15/2019               (139,000
       USD        2,029,388        EUR        1,776,000        03/15/2019               (7,420
       USD        496,681        GBP        380,000        03/15/2019        7,615         
                                                 


  


Net Unrealized Appreciation/(Depreciation)

                                                $ 470,094      $ (148,537
                                                 


  


 

EUR—Euro Currency

GBP—Britisth Pound

USD—United States Dollar

 

117


Table of Contents

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — February 28, 2019 (unaudited) — (continued)


 

 

The following is a summary of the inputs used to value the Fund’s net assets as of February 28, 2019 (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

   $ —        $ 17,721,944      $         —        $ 17,721,944  

U.S. Corporate Bonds & Notes:

                                   

Airlines

     —          868,183        47,784        915,967  

Finance - Investment Banker/Broker

     —          1,940,953        25        1,940,978  

Gambling (Non-Hotel)

     —          1,283,594        5,076        1,288,670  

Rubber/Plastic Products

     —          —          0        0  

Other Industries

     —          277,919,279        —          277,919,279  

Foreign Corporate Bonds & Notes:

                                   

Special Purpose Entity

     —          —          0        0  

Other Industries

     —          121,823,922        —          121,823,922  

Foreign Government Obligations

     —          95,165,937        —          95,165,937  

U.S. Government Agencies

     —          201,773,550        —          201,773,550  

U.S. Government Treasuries

     —          46,256,323        —          46,256,323  

Loans:

                                   

Oil Companies - Exploration & Production

     —          —          857,841        857,841  

Other Industries

     —          45,466,376        —          45,466,376  

Common Stocks

     —          —          394,848        394,848  

Preferred Securities:

                                   

Building Products - Air & Heating

     —          —          86,869        86,869  

Others

     196,704        —          —          196,704  

Preferred Securities/Capital Securities:

                                   

Finance Investment Banker/Broker

     —          —          10        10  

Other Industries

     —          13,209,505        —          13,209,505  

Short-Term Investment Securities:

                                   

Registered Investment Companies

     85,029,554        —          —          85,029,554  

U.S. Government Treasuries

     —          2,996,090        —          2,996,090  
    


  


  


  


Total Investments at Value

   $ 85,226,258      $ 826,425,656      $ 1,392,453      $ 913,044,367  
    


  


  


  


Other Financial Instruments:+

                                   

Forward Foreign Currency Contracts

   $ —        $ 470,094      $ —        $ 470,094  
    


  


  


  


LIABILITIES:

                                   

Other Financial Instruments:+

                                   

Forward Foreign Currency Contracts

   $ —        $ 148,537      $ —        $ 148,537  
    


  


  


  



*

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 investment.

 

At the beginning and end of the reporting period, Level 3 investments in securities were not considered a material portion of the Fund. There were no material transfers during the reporting period.

 

See Notes to Financial Statements

 

118


Table of Contents

VALIC Company II

STATEMENTS OF ASSETS AND LIABILITIES — February 28, 2019 (unaudited)


 

    AGGRESSIVE
GROWTH
LIFESTYLE FUND
    CAPITAL
APPRECIATION
FUND
    CONSERVATIVE
GROWTH
LIFESTYLE FUND
    CORE BOND
FUND
    GOVERNMENT
MONEY MARKET II
FUND
    HIGH YIELD
BOND FUND
    INTERNATIONAL
OPPORTUNITIES
FUND
 

ASSETS:

                                                       

Investment at value (unaffiliated)*†

  $     $ 102,989,162     $     $ 1,639,815,084     $ 120,574,546     $ 613,181,538     $ 604,551,570  

Investment at value (affiliated)*†

    580,288,683             321,488,634                          

Repurchase agreements (cost equals market value)

                                  55,862,000       2,161,000  

Cash

    207,420       1,469,391       62,634             54,986       448,562       51,172  

Foreign cash*

                                        3,390,409  

Cash collateral for futures contracts

                                         

Due from broker

                                         

Receivable for:

                                                       

Fund shares sold

    195,579       32,707       24,853       569,667       14,858       41,562       7,888  

Dividends and interest

          138,770             10,992,918       77,546       8,956,034       848,956  

Investments sold

                      12,762,009             1,848,805       2,125,137  

Investments sold on an extended settlement basis

                      59,088,941                    

Securities lending income

          1,071             14,253             29,153       22,184  

Prepaid expenses and other assets

    22,204       12,340       15,758       45,755       25,491       29,240       49,930  

Due from investment adviser for expense reimbursements/fee waivers

    17,708       12,179       12,751       6,984       11,237       5,870       100,950  

Variation margin on futures contracts

                                         

Unrealized appreciation on forward foreign currency contracts

                                  3,081        
   


 


 


 


 


 


 


TOTAL ASSETS

    580,731,594       104,655,620       321,604,630       1,723,295,611       120,758,664       680,405,845       613,309,196  
   


 


 


 


 


 


 


LIABILITIES:

                                                       

Payable for:

                                                       

Fund shares reacquired

    66,075       9,429       6,388       411,253       9,251       106,090       114,961  

Investments purchased

    128,824             18,078       55,326,922       2,001,642       15,803,992       2,748,576  

Investments purchased on an extended settlement basis

                      84,165,233             9,279,205       191,570  

Investment advisory and management fees

    44,050       43,184       24,556       488,365       22,923       270,653       369,105  

Administrative service fees

          5,237             76,958       6,116       29,799       30,135  

Shareholder services

          19,629             288,447       22,922       111,692       112,948  

Transfer agent fees and expenses

    213       428       213       428       161       428       371  

Trustees’ fees and expenses

    16,126       6,485       10,726       27,322       18,480       21,055       43,212  

Other accrued expenses

    74,979       39,224       56,472       181,142       46,441       108,617       216,381  

Accrued foreign tax on capital gains

                                        70,728  

Collateral upon return of securities loaned

          359,572             18,909,203             35,206,758       14,063,361  

Variation margin on futures contracts

                                         

Due to custodian

                      325,431                    

Due to broker

                                         

Commitments (Note 12)

                                         

Unrealized depreciation on forward foreign currency contracts

                                  30,771        
   


 


 


 


 


 


 


TOTAL LIABILITIES

    330,267       483,188       116,433       160,200,704       2,127,936       60,969,060       17,961,348  
   


 


 


 


 


 


 


NET ASSETS

  $ 580,401,327     $ 104,172,432     $ 321,488,197     $ 1,563,094,907     $ 118,630,728     $ 619,436,785     $ 595,347,848  
   


 


 


 


 


 


 


NET ASSETS REPRESENTED BY:

                                                       

Trust shares at par value of $0.01 per share

  $ 528,614     $ 54,241     $ 263,403     $ 1,429,481     $ 1,186,101     $ 806,543     $ 310,491  

Additional paid in capital

    499,291,760       64,880,799       300,646,753       1,534,543,926       117,453,256       593,737,868       490,908,579  

Total distributable earnings (loss)

    80,580,953       39,237,392       20,578,041       27,121,500       (8,629     24,892,374       104,128,778  
   


 


 


 


 


 


 


NET ASSETS

  $ 580,401,327     $ 104,172,432     $ 321,488,197     $ 1,563,094,907     $ 118,630,728     $ 619,436,785     $ 595,347,848  
   


 


 


 


 


 


 


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       1,000,000,000       1,000,000,000  

Outstanding

    52,861,384       5,424,104       26,340,258       142,948,085       118,610,136       80,654,278       31,049,099  

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE

  $ 10.98     $ 19.21     $ 12.21     $ 10.93     $ 1.00     $ 7.68     $ 19.17  
   


 


 


 


 


 


 



* Cost

                                                       

Investments (unaffiliated)

  $     $ 90,302,832     $     $ 1,649,695,892     $ 120,574,546     $ 618,644,269     $ 516,502,856  
   


 


 


 


 


 


 


Investments (affiliated)

  $ 557,316,120     $     $ 316,078,035     $     $     $     $  
   


 


 


 


 


 


 


Foreign cash

  $     $     $     $     $     $     $ 3,384,416  
   


 


 


 


 


 


 


† Including securities on loan

  $     $ 2,289,924     $     $ 35,166,107     $     $ 42,844,791     $ 26,882,974  
   


 


 


 


 


 


 


 

See Notes to Financial Statements

 

119


Table of Contents

VALIC Company II

STATEMENTS OF ASSETS AND LIABILITIES — February 28, 2019 (unaudited) — (continued)


 

    LARGE CAP
VALUE FUND
    MID CAP
GROWTH FUND
    MID CAP
VALUE FUND
    MODERATE
GROWTH
LIFESTYLE FUND
    SMALL CAP
GROWTH FUND
    SMALL CAP
VALUE FUND
    SOCIALLY
RESPONSIBLE
FUND
    STRATEGIC
BOND FUND
 

ASSETS:

                                                               

Investment at value (unaffiliated)*†

  $ 271,807,719     $ 231,243,627     $ 756,671,258     $     $ 201,235,842     $ 389,973,636     $ 675,393,704     $ 913,044,367  

Investment at value (affiliated)*†

                      928,888,127                          

Repurchase agreements (cost equals market value)

                4,623,000                   11,041,000       29,150,000        

Cash

    293,204       299,302       645             1,804,721       1,273       895       2,771,961  

Foreign cash*

          152       29                               6,873  

Cash collateral for futures contracts

                                  753,700              

Due from broker

                                               

Receivable for:

                                                               

Fund shares sold

    68,786       104,185       22,459       96,714       48,275       32,271       30,970       272,926  

Dividends and interest

    645,590       100,526       893,153             72,972       283,220       1,056,820       9,105,242  

Investments sold

    2,196,403       260,527       2,174,510             1,334,483       1,331,237             3,035,499  

Investments sold on an extended settlement basis

                                              44,876,706  

Securities lending income

    301       8,225       3,125             16,149       17,277       1,799       14,292  

Prepaid expenses and other assets

    23,279       17,651       61,745       32,379       13,296       36,319       54,700       43,467  

Due from investment adviser for expense reimbursements/fee waivers

    16,226       46,071       8,010       24,312       11,970       39,249       27,217        

Variation margin on futures contracts

                                               

Unrealized appreciation on forward foreign currency contracts

                                              470,094  
   


 


 


 


 


 


 


 


TOTAL ASSETS

    275,051,508       232,080,266       764,457,934       929,041,532       204,537,708       403,509,182       705,716,105       973,641,427  
   


 


 


 


 


 


 


 


LIABILITIES:

                                                               

Payable for:

                                                               

Fund shares reacquired

    7,018       116,833       293,107       51,199       138,925       138,230       182,202       17,291  

Investments purchased

    2,167,705       284,178       1,426,167       44,417       43,825       1,380,893             32,790,995  

Investments purchased on an extended settlement basis

                                              59,716,487  

Investment advisory and management fees

    102,374       126,198       402,380       70,633       122,708       208,189       133,473       329,029  

Administrative service fees

    13,657       11,477       38,158             9,911       20,970       35,611       43,653  

Shareholder services

    51,187       43,016       143,023             37,148       78,597       133,473       163,616  

Transfer agent fees and expenses

    353       374       481       213       428       374       213       588  

Trustees’ fees and expenses

    15,238       9,522       58,583       24,339       5,913       30,434       46,294       30,969  

Other accrued expenses

    56,911       59,198       182,549       101,393       45,498       113,106       115,743       137,263  

Accrued foreign tax on capital gains

                                               

Collateral upon return of securities loaned

          1,232,672       1,417,878             3,650,424       5,185,970       458,964       16,668,518  

Variation margin on futures contracts

                                  45,870       120,120        

Due to custodian

                                               

Due to broker

                                  2,409       49        

Commitments (Note 12)

                                              51,217  

Unrealized depreciation on forward foreign currency contracts

                                              148,537  
   


 


 


 


 


 


 


 


TOTAL LIABILITIES

    2,414,443       1,883,468       3,962,326       292,194       4,054,780       7,205,042       1,226,142       110,098,163  
   


 


 


 


 


 


 


 


NET ASSETS

  $ 272,637,065     $ 230,196,798     $ 760,495,608     $ 928,749,338     $ 200,482,928     $ 396,304,140     $ 704,489,963     $ 863,543,264  
   


 


 


 


 


 


 


 


NET ASSETS REPRESENTED BY:

                                                               

Trust shares at par value of $0.01 per share

  $ 126,205     $ 223,561     $ 364,079     $ 633,580     $ 91,721     $ 278,822     $ 313,126     $ 777,305  

Additional paid in capital

    233,735,198       195,782,225       546,929,571       818,881,051       124,204,115       296,250,587       373,313,310       858,584,631  

Total distributable earnings (loss)

    38,775,662       34,191,012       213,201,958       109,234,707       76,187,092       99,774,731       330,863,527       4,181,328  
   


 


 


 


 


 


 


 


NET ASSETS

  $ 272,637,065     $ 230,196,798     $ 760,495,608     $ 928,749,338     $ 200,482,928     $ 396,304,140     $ 704,489,963     $ 863,543,264  
   


 


 


 


 


 


 


 


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       1,000,000,000       1,000,000,000       1,000,000,000  

Outstanding

    12,620,508       22,356,149       36,407,903       63,358,039       9,172,113       27,882,211       31,312,573       77,730,482  

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE

  $ 21.60     $ 10.30     $ 20.89     $ 14.66     $ 21.86     $ 14.21     $ 22.50     $ 11.11  
   


 


 


 


 


 


 


 



*  Cost

                                                               

Investments (unaffiliated)

  $ 261,133,212     $ 207,107,888     $ 702,815,144     $     $ 176,745,078     $ 362,699,056     $ 504,222,690     $ 923,580,824  
   


 


 


 


 


 


 


 


Investments (affiliated)

  $     $     $     $ 895,262,471     $     $     $     $  
   


 


 


 


 


 


 


 


Foreign cash

  $     $ 150     $ 29     $     $     $     $     $ 7,223  
   


 


 


 


 


 


 


 


† Including securities on loan

  $ 6,342,048     $ 44,572,459     $ 19,769,233     $     $ 42,011,720     $ 38,303,319     $ 19,379,197     $ 27,578,448  
   


 


 


 


 


 


 


 


 

See Notes to Financial Statements

 

120


Table of Contents

VALIC Company II

STATEMENTS OF OPERATIONS — For the Six Months Ended February 28, 2019 (unaudited)


 

    AGGRESSIVE
GROWTH
LIFESTYLE FUND
    CAPITAL
APPRECIATION
FUND
    CONSERVATIVE
GROWTH
LIFESTYLE FUND
    CORE BOND
FUND
    GOVERNMENT
MONEY MARKET II
FUND
    HIGH YIELD
BOND FUND
    INTERNATIONAL
OPPORTUNITIES
FUND
 

INVESTMENT INCOME:

                                                       

Dividends (unaffiliated)

  $     $ 629,187     $     $ 31,696     $     $ 64,983     $ 2,943,884  

Dividends (affiliated)

                                         

Securities lending income

          12,222             86,246             214,374       182,187  

Interest (unaffiliated)

                      26,538,580       1,317,629       17,695,051       102,212  
   


 


 


 


 


 


 


Total investment income*

          641,409             26,656,522       1,317,629       17,974,408       3,228,283  
   


 


 


 


 


 


 


EXPENSES:

                                                       

Investment advisory and management fees

    281,987       275,730       159,421       2,905,819       149,131       1,689,042       2,443,869  

Administrative service fee

          33,436             455,572       39,784       185,271       199,595  

Shareholder services fee

          125,332             1,707,661       149,131       694,490       748,213  

Transfer agent fees and expenses

    821       1,644       821       1,644       616       1,644       1,435  

Custodian and accounting fees

    6,187       8,840       6,187       54,602       7,824       25,838       112,694  

Reports to shareholders

    34,532       6,714       19,443       69,908       7,435       32,443       42,166  

Audit and tax fees

    16,345       19,351       16,133       23,000       20,988       22,372       31,645  

Legal fees

    21,998       12,067       16,014       38,132       11,023       21,418       25,062  

Trustees’ fees and expenses

    18,362       3,195       10,457       39,366       4,014       17,657       22,167  

Interest expense

                                  97       206  

Other expenses

    9,721       11,974       8,475       18,893       6,406       16,288       23,238  
   


 


 


 


 


 


 


Total expenses before fee waivers, expense reimbursements, and fees paid indirectly

    389,953       498,283       236,951       5,314,597       396,352       2,706,560       3,650,290  
   


 


 


 


 


 


 


Fees waived and expenses reimbursed by investment adviser (Note 3)

    (107,966     (72,156     (77,530     (55,000     (68,264     (39,720     (657,440

Fees paid indirectly (Note 7)

          (254                              
   


 


 


 


 


 


 


Net expenses

    281,987       425,873       159,421       5,259,597       328,088       2,666,840       2,992,850  
   


 


 


 


 


 


 


Net investment income (loss)

    (281,987     215,536       (159,421     21,396,925       989,541       15,307,568       235,433  
   


 


 


 


 


 


 


REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:

                                                       

Net realized gain (loss) on:

                                                       

Investments (unaffiliated)**

          (203,040           (7,944,205     (297     (3,300,224     (8,184,726

Investments (affiliated)

    (1,401,809           (5,996,529                        

Futures contracts

                                         

Forward contracts

                                  495,762        

Swap contracts

                                         

Net realized foreign exchange gain (loss) on other assets and liabilities

                                  (14,294     (265,497

Net realized gain (loss) on capital gain distributions received from underlying funds (affiliated)

                                         
   


 


 


 


 


 


 


Net realized gain (loss) on investments and foreign currencies

    (1,401,809     (203,040     (5,996,529     (7,944,205     (297     (2,818,756     (8,450,223
   


 


 


 


 


 


 


Change in unrealized appreciation (depreciation) on:

                                                       

Investments (unaffiliated)

          (5,096,819           14,167,771             (668,692     (62,441,422

Investments (affiliated)

    (18,151,878           2,743,436                          

Futures contracts

                                         

Forward contracts

                                  (7,094      

Swap contracts

                                         

Change in net unrealized foreign exchange gain (loss) on other assets and liabilities

                                  (303     6,485  

Change in accrued capital gains tax on unrealized appreciation (depreciation)

                                        46,434  
   


 


 


 


 


 


 


Net unrealized gain (loss) on investments and foreign currencies

    (18,151,878     (5,096,819     2,743,436       14,167,771             (676,089     (62,388,503
   


 


 


 


 


 


 


Net realized and unrealized gain (loss) on investments and foreign currencies

    (19,553,687     (5,299,859     (3,253,093     6,223,566       (297     (3,494,845     (70,838,726
   


 


 


 


 


 


 


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ (19,835,674   $ (5,084,323   $ (3,412,514   $ 27,620,491     $ 989,244     $ 11,812,723     $ (70,603,293
   


 


 


 


 


 


 


*  Net of foreign withholding taxes on interest and dividends of

  $     $     $     $ 179     $     $     $ 227,988  
   


 


 


 


 


 


 


** Net of foreign withholding taxes on capital gains of

  $     $     $     $     $     $     $ 16,452  
   


 


 


 


 


 


 


 

See Notes to Financial Statements

 

121


Table of Contents

VALIC Company II

STATEMENTS OF OPERATIONS — For the Six Months Ended February 28, 2019 (unaudited) — (continued)


 

    LARGE CAP
VALUE FUND
    MID CAP
GROWTH FUND
    MID CAP
VALUE FUND
    MODERATE
GROWTH
LIFESTYLE FUND
    SMALL CAP
GROWTH
FUND
    SMALL CAP
VALUE FUND
    SOCIALLY
RESPONSIBLE
FUND
    STRATEGIC
BOND FUND
 

INVESTMENT INCOME:

                                                               

Dividends (unaffiliated)

  $ 3,312,198     $ 852,681     $ 7,291,313     $     $ 420,007     $ 4,524,377     $ 6,938,411     $ 38,893  

Dividends (affiliated)

                                               

Securities lending income

    7,087       55,903       33,597             108,212       101,851       18,416       133,028  

Interest (unaffiliated)

    27,491             11,129             5,724       23,885       68,736       20,815,278  
   


 


 


 


 


 


 


 


Total investment income*

    3,346,776       908,584       7,336,039             533,943       4,650,113       7,025,563       20,987,199  
   


 


 


 


 


 


 


 


EXPENSES:

                                                               

Investment advisory and management fees

    657,557       771,586       2,677,393       452,696       771,535       1,425,167       873,082       2,117,066  

Administrative service fee

    87,711       69,972       254,620             62,254       143,681       232,912       280,694  

Shareholder services fee

    328,779       262,284       954,465             233,356       538,605       873,082       1,052,175  

Transfer agent fees and expenses

    1,447       1,438       1,848       821       1,644       1,438       821       2,259  

Custodian and accounting fees

    9,519       8,709       47,567       6,183       9,962       51,404       20,316       60,518  

Reports to shareholders

    15,686       9,205       55,029       54,204       9,885       31,482       43,900       43,732  

Audit and tax fees

    18,249       18,898       18,853       16,794       17,884       20,472       19,278       24,168  

Legal fees

    14,180       12,990       27,991       30,180       12,764       19,731       25,457       28,296  

Trustees’ fees and expenses

    8,014       5,628       28,744       28,949       5,779       16,161       23,652       25,300  

Interest expense

    508       61       14       285       291       10       7,316        

Other expenses

    14,454       12,720       19,422       10,927       12,901       19,210       17,521       18,423  
   


 


 


 


 


 


 


 


Total expenses before fee waivers, expense reimbursements, and fees paid indirectly

    1,156,104       1,173,491       4,085,946       601,039       1,138,255       2,267,361       2,137,337       3,652,631  
   


 


 


 


 


 


 


 


Fees waived and expenses reimbursed by investment adviser (Note 3)

    (90,861     (281,726     (77,191     (148,344     (55,484     (220,663     (181,634      

Fees paid indirectly (Note 7)

    (8,803     (159     (1,490           (8,363     (30,112            
   


 


 


 


 


 


 


 


Net expenses

    1,056,440       891,606       4,007,265       452,695       1,074,408       2,016,586       1,955,703       3,652,631  
   


 


 


 


 


 


 


 


Net investment income (loss)

    2,290,336       16,978       3,328,774       (452,695     (540,465     2,633,527       5,069,860       17,334,568  
   


 


 


 


 


 


 


 


REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:

                                                               

Net realized gain (loss) on:

                                                               

Investments (unaffiliated)**

    1,337,783       2,234,726       19,499,960             9,090,857       14,955,671       94,040,688       (10,035,849

Investments (affiliated)

                      (4,404,263                        

Futures contracts

                                  (343,569     (3,356,036      

Forward contracts

                                              1,436,472  

Swap contracts

                                               

Net realized foreign exchange gain (loss) on other assets and liabilities

          20       (1,984                             31,072  

Net realized gain (loss) on capital gain distributions received from underlying funds (affiliated)

                                               
   


 


 


 


 


 


 


 


Net realized gain (loss) on investments and foreign currencies

    1,337,783       2,234,746       19,497,976       (4,404,263     9,090,857       14,612,102       90,684,652       (8,568,305
   


 


 


 


 


 


 


 


Change in unrealized appreciation (depreciation) on:

                                                               

Investments (unaffiliated)

    (17,911,373     (9,652,699     (75,529,323           (22,518,221     (69,051,237     (119,212,092     10,203,058  

Investments (affiliated)

                      (17,860,719                        

Futures contracts

                                  (179,140     2,615,678        

Forward contracts

                                              27,186  

Swap contracts

                                               

Change in net unrealized foreign exchange gain (loss) on other assets and liabilities

          2       (1,071                             8,060  

Change in accrued capital gains tax on unrealized appreciation (depreciation)

                                               
   


 


 


 


 


 


 


 


Net unrealized gain (loss) on investments and foreign currencies

    (17,911,373     (9,652,697     (75,530,394     (17,860,719     (22,518,221     (69,230,377     (116,596,414     10,238,304  
   


 


 


 


 


 


 


 


Net realized and unrealized gain (loss) on investments and foreign currencies

    (16,573,590     (7,417,951     (56,032,418     (22,264,982     (13,427,364     (54,618,275     (25,911,762     1,669,999  
   


 


 


 


 


 


 


 


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ (14,283,254   $ (7,400,973   $ (52,703,644   $ (22,717,677   $ (13,967,829   $ (51,984,748   $ (20,841,902   $ 19,004,567  
   


 


 


 


 


 


 


 


*  Net of foreign withholding taxes on interest and dividends of

  $ 3,505     $ 5,494     $ 31,526     $     $     $ 3,138     $ 19     $ (538)  
   


 


 


 


 


 


 


 


** Net of foreign withholding taxes on capital gains of

  $     $     $     $     $     $     $     $  
   


 


 


 


 


 


 


 


 

See Notes to Financial Statements

 

122


Table of Contents

VALIC Company II

STATEMENTS OF CHANGES IN NET ASSETS


 

    AGGRESSIVE GROWTH
LIFESTYLE FUND


    CAPITAL APPRECIATION
FUND


    CONSERVATIVE GROWTH
LIFESTYLE FUND


    CORE BOND
FUND


 
    For the
Six Months
Ended
February 28,

2019

(Unaudited)

    For the
Year Ended
August 31,
2018


    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


 

INCREASE (DECREASE) IN NET ASSETS OPERATIONS:

 

                                       

Net investment income (loss)

  $ (281,987   $ 8,857,344     $ 215,536     $ 219,346     $ (159,421   $ 8,383,703     $ 21,396,925     $ 33,581,505  

Net realized gain (loss) on investments and foreign currencies

    (1,401,809     53,602,115       (203,040     26,494,594       (5,996,529     14,267,169       (7,944,205     (7,802,673

Net unrealized gain (loss) on investments and foreign currencies

    (18,151,878     1,524,189       (5,096,819     (2,110,223     2,743,436       (6,137,864     14,167,771       (41,645,334
   


 


 


 


 


 


 


 


Net increase (decrease) in net assets resulting from operations

    (19,835,674     63,983,648       (5,084,323     24,603,717       (3,412,514     16,513,008       27,620,491       (15,866,502
   


 


 


 


 


 


 


 


DISTRIBUTIONS TO SHAREHOLDERS FROM(1):

                                                               

Distributable earnings

          (28,418,172           (5,084,499           (9,573,695           (29,745,347
   


 


 


 


 


 


 


 


Net increase (decrease) in net assets resulting from capital share transactions (Note 6)

    (8,472,000     5,300,297       (439,952     (1,401,691     (13,892,188     (2,053,403     252,888,661       212,261,412  
   


 


 


 


 


 


 


 


TOTAL INCREASE (DECREASE) IN NET ASSETS

    (28,307,674     40,865,773       (5,524,275     18,117,527       (17,304,702     4,885,910       280,509,152       166,649,563  

NET ASSETS:

                                                               

Beginning of period

    608,709,001       567,843,228       109,696,707       91,579,180       338,792,899       333,906,989       1,282,585,755       1,115,936,192  
   


 


 


 


 


 


 


 


End of period

  $ 580,401,327     $ 608,709,001     $ 104,172,432     $ 109,696,707     $ 321,488,197     $ 338,792,899     $ 1,563,094,907     $ 1,282,585,755  
   


 


 


 


 


 


 


 



(1)

The prior year amounts have been restated to reflect the adoption of amendments to Rule 6-09.3 of regulation S-X. Below are the amounts as stated in the August 31, 2018 annual report.

 

Distributions to shareholders from:

                                                                                                                                                                                                                               

Net investment income

            $ (8,100,720            $ (434,154            $ (7,646,556            $ (29,295,082

Net realized gain on securities

              (20,317,452              (4,650,345              (1,927,139              (450,265
             


          


          


          


Total distributions to shareholders

            $ (28,418,172            $ (5,084,499            $ (9,573,695            $ (29,745,347
             


          


          


          


 

See Notes to Financial Statements

 

123


Table of Contents

VALIC Company II

STATEMENTS OF CHANGES IN NET ASSETS — (continued)


 

     GOVERNMENT MONEY MARKET II
FUND


    HIGH YIELD BOND
FUND


    INTERNATIONAL
OPPORTUNITIES FUND


    LARGE CAP
VALUE FUND


 
     For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


 

INCREASE (DECREASE) IN NET ASSETS OPERATIONS:

                                                                

Net investment income (loss)

   $ 989,541     $ 1,175,020     $ 15,307,568     $ 29,649,641     $ 235,433     $ 4,501,228     $ 2,290,336     $ 3,420,241  

Net realized gain (loss) on investments and foreign currencies

     (297     (7,492     (2,818,756     4,441,845       (8,450,223     82,165,251       1,337,783       22,214,795  

Net unrealized gain (loss) on investments and foreign currencies

                 (676,089     (17,327,317     (62,388,503     (12,601,347     (17,911,373     9,558,207  
    


 


 


 


 


 


 


 


Net increase (decrease) in net assets resulting from operations

     989,244       1,167,528       11,812,723       16,764,169       (70,603,293     74,065,132       (14,283,254     35,193,243  
    


 


 


 


 


 


 


 


DISTRIBUTIONS TO SHAREHOLDERS FROM(1):

                                                                

Distributable earnings

     (989,541     (1,175,020           (32,204,893           (5,841,813           (11,232,389
    


 


 


 


 


 


 


 


Net increase (decrease) in net assets resulting from capital share transactions (Note 6)

     (18,355,845     4,050,214       31,070,986       30,514,165       (58,076,243     (15,293,377     2,833,852       33,499,196  
    


 


 


 


 


 


 


 


TOTAL INCREASE (DECREASE) IN NET ASSETS

     (18,356,142     4,042,722       42,883,709       15,073,441       (128,679,536     52,929,942       (11,449,402     57,460,050  

NET ASSETS:

                                                                

Beginning of period

     136,986,870       132,944,148       576,553,076       561,479,635       724,027,384       671,097,442       284,086,467       226,626,417  
    


 


 


 


 


 


 


 


End of period

   $ 118,630,728     $ 136,986,870     $ 619,436,785     $ 576,553,076     $ 595,347,848     $ 724,027,384     $ 272,637,065     $ 284,086,467  
    


 


 


 


 


 


 


 



(1)

The prior year amounts have been restated to reflect the adoption of amendments to Rule 6-09.3 of regulation S-X. Below are the amounts as stated in the August 31, 2018 annual report.

 

Distributions to shareholders from:

                                                                                                                                                

Net investment income

            $ (1,175,020            $ (32,204,893            $ (5,841,813            $ (2,959,420

Net realized gain on securities

                                                           (8,272,969
             


          


          


          


Total distributions to shareholders

            $ (1,175,020            $ (32,204,893            $ (5,841,813            $ (11,232,389
             


          


          


          


 

See Notes to Financial Statements

 

124


Table of Contents

VALIC Company II

STATEMENTS OF CHANGES IN NET ASSETS — (continued)


 

    MID CAP GROWTH FUND

    MID CAP VALUE FUND

    MODERATE GROWTH
LIFESTYLE FUND


    SMALL CAP GROWTH FUND

 
    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


 

INCREASE (DECREASE) IN NET ASSETS OPERATIONS:

                                                               

Net investment income (loss)

  $ 16,978     $ (303,012   $ 3,328,774     $ 4,045,936     $ (452,695   $ 16,403,626     $ (540,465   $ (1,078,825

Net realized gain (loss) on investments and foreign currencies

    2,234,746       8,380,845       19,497,976       139,462,749       (4,404,263     69,662,433       9,090,857       45,046,628  

Net unrealized gain (loss) on investments and foreign currencies

    (9,652,697     28,304,073       (75,530,394     (17,892,671     (17,860,719     (1,720,543     (22,518,221     17,234,244  
   


 


 


 


 


 


 


 


Net increase (decrease) in net assets resulting from operations

    (7,400,973     36,381,906       (52,703,644     125,616,014       (22,717,677     84,345,516       (13,967,829     61,202,047  
   


 


 


 


 


 


 


 


DISTRIBUTIONS TO SHAREHOLDERS FROM(1):

 

       

Distributable earnings

          (26,389,601           (71,757,096           (35,064,153           (6,146,636
   


 


 


 


 


 


 


 


Net increase (decrease) in net assets resulting from capital share transactions (Note 6)

    17,153,956       76,463,063       (103,085,025     (183,620,229     (13,140,460     18,980,604       (932,980     22,997,976  
   


 


 


 


 


 


 


 


TOTAL INCREASE (DECREASE) IN NET ASSETS

    9,752,983       86,455,368       (155,788,669     (129,761,311     (35,858,137     68,261,967       (14,900,809     78,053,387  

NET ASSETS:

                                                               

Beginning of period

    220,443,815       133,988,447       916,284,277       1,046,045,588       964,607,475       896,345,508       215,383,737       137,330,350  
   


 


 


 


 


 


 


 


End of period

  $ 230,196,798     $ 220,443,815     $ 760,495,608     $ 916,284,277     $ 928,749,338     $ 964,607,475     $ 200,482,928     $ 215,383,737  
   


 


 


 


 


 


 


 



(1)

The prior year amounts have been restated to reflect the adoption of amendments to Rule 6-09.3 of regulation S-X. Below are the amounts as stated in the August 31, 2018 annual report.

 

Distributions to shareholders from:

                                                                                                                                              

Net investment income

          $ (219,879           $ (3,732,456           $ (14,676,075           $  

Net realized gain on securities

            (26,169,722             (68,024,640             (20,388,078             (6,146,636
           


         


         


         


Total distributions to shareholders

          $ (26,389,601           $ (71,757,096           $ (35,064,153           $ (6,146,636
           


         


         


         


 

See Notes to Financial Statements

 

125


Table of Contents

VALIC Company II

STATEMENTS OF CHANGES IN NET ASSETS — (continued)


 

     SMALL CAP VALUE FUND

    SOCIALLY RESPONSIBLE FUND

    STRATEGIC BOND FUND

 
     For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


    For the
Six Months
Ended
February 28,
2019

(Unaudited)


    For the
Year Ended
August 31,
2018


 

INCREASE (DECREASE) IN NET ASSETS OPERATIONS:

                                                

Net investment income (loss)

   $ 2,633,527     $ 5,331,667     $ 5,069,860     $ 10,863,154     $ 17,334,568     $ 29,863,580  

Net realized gain (loss) on investments and foreign currencies

     14,612,102       52,025,949       90,684,652       51,589,236       (8,568,305     (3,504,948

Net unrealized gain (loss) on investments and foreign currencies

     (69,230,377     30,354,684       (116,596,414     72,482,641       10,238,304       (33,808,260
    


 


 


 


 


 


Net increase (decrease) in net assets resulting from operations

     (51,984,748     87,712,300       (20,841,902     134,935,031       19,004,567       (7,449,628
    


 


 


 


 


 


DISTRIBUTIONS TO SHAREHOLDERS FROM(1):

                                                

Distributable earnings

           (40,911,561           (25,957,719           (30,340,988
    


 


 


 


 


 


Net increase (decrease) in net assets resulting from capital share transactions (Note 6)

     (86,259,057     (41,757,567     (63,786,275     (119,757,020     (8,862,877     142,137,238  
    


 


 


 


 


 


TOTAL INCREASE (DECREASE) IN NET ASSETS

     (138,243,805     5,043,172       (84,628,177     (10,779,708     10,141,690       104,346,622  

NET ASSETS:

                                                

Beginning of period

     534,547,945       529,504,773       789,118,140       799,897,848       853,401,574       749,054,952  
    


 


 


 


 


 


End of period

   $ 396,304,140     $ 534,547,945     $ 704,489,963     $ 789,118,140     $ 863,543,264     $ 853,401,574  
    


 


 


 


 


 



(1)

The prior year amounts have been restated to reflect the adoption of amendments to Rule 6-09.3 of regulation S-X. Below are the amounts as stated in the August 31, 2018 annual report.

 

Distributions to shareholders from:

                                                                                                            

Net investment income

            $ (4,198,015            $ (12,121,511            $ (30,340,988

Net realized gain on securities

              (36,713,546              (13,836,208               
             


          


          


Total distributions to shareholders

            $ (40,911,561            $ (25,957,719            $ (30,340,988
             


          


          


 

See Notes to Financial Statements

 

126


Table of Contents

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     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.

 

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 Funds are considered investment companies under GAAP and follow the accounting and reporting guidance applicable to investment companies. 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, 2019, is reported on a schedule at the end of each Fund’s Portfolio of Investments.

 

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

 

127


Table of Contents

VALIC Company II

NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

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. Investments in 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.

 

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

 

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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 at the end of each 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 cash collateral for futures contracts 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 or securities. 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 at the end of each Fund’s Portfolio of Investments.

 

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.

 

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NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

 

The following tables represent the value of derivatives held as of February 28, 2019, 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, 2019. The derivative contracts held during the period are not accounted for as hedging instruments under GAAP. For a detailed presentation of derivatives held as of February 28, 2019, please refer to the schedule at the end of each Fund’s Portfolio of Investments.

 

     Asset Derivatives

 
     Equity
Contracts


     Foreign
Exchange
Contracts


     Total

 

Fund


   Futures
Contracts(1)(4)


     Forward
Foreign
Currency
Contracts(2)


 

High Yield Bond

   $         —        $ 3,081      $ 3,081  

Small Cap Value

     —          —          —    

Socially Responsible

     —          —          —    

Strategic Bond

     —          470,094        470,094  
     Liability Derivatives

 
     Equity
Contracts


     Foreign
Exchange
Contracts


     Total

 

Fund


   Futures
Contracts(1)(4)


     Forward
Foreign
Currency
Contracts(3)


 

High Yield Bond

   $ —        $ 30,771      $ 30,771  

Small Cap Value

     45,870        —          45,870  

Socially Responsible

     120,120        —          120,120  

Strategic Bond

     —          148,537        148,537  

 

Statement of Assets and Liabilities Location:

 

(1)

Variation margin on futures contracts

(2)

Unrealized appreciation on forward foreign currency contracts

(3)

Unrealized depreciation on forward foreign currency contracts

(4)

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
Appreciation
(Depreciation)


 

Small Cap Value

   $ 114,478  

Socially Responsible

     2,968,089  

 

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     Realized Gain (Loss) on Derivatives Recognized in
Statement of Operations


 
     Equity
Contracts


     Foreign
Exchange
Contracts


     Total

 

Fund


   Futures
Contracts(1)


     Forward
Foreign
Currency
Contracts(2)


 

High Yield Bond

   $ —        $ 495,762      $ 495,762  

Small Cap Value

     (343,569      —          (343,569

Socially Responsible

     (3,356,036      —          (3,356,036

Strategic Bond

     —          1,436,472        1,436,472  
         Change in Unrealized Appreciation (Depreciation) on Derivatives       
Recognized in Statement of Operations


 
     Equity
Contracts


     Foreign
Exchange
Contracts


     Total

 

Fund


   Futures
Contracts(3)


     Forward
Foreign
Currency
Contracts(4)


 

High Yield Bond

   $ —        $ (7,094    $ (7,094

Small Cap Value

     (179,140      —          (179,140

Socially Responsible

     2,615,678        —          2,615,678  

Strategic Bond

     —          27,186        27,186  

 

Statement of Operations Location:

 

(1)

Net realized gain (loss) on futures contracts

(2)

Net realized gain (loss) on forward contracts

(3)

Change in unrealized appreciation (depreciation) on futures contracts

(4)

Change in unrealized appreciation (depreciation) on forward contracts

 

The following table represents the average monthly balances of derivatives held during the six months ended February 28, 2019.

 

          Average Amount Outstanding During the Year    

 

Fund


   Futures
Contracts(1)


     Foreign
Exchange
Contracts(1)


 

High Yield Bond

   $ —        $ 13,171,858  

Small Cap Value

     9,519,169        —    

Socially Responsible

     22,706,639        —    

Strategic Bond

     —          54,667,894  

 

(1)

Amounts represent notional amounts in U.S. dollars.

 

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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, 2019. The repurchase agreements held by the Funds and securities on loan as of February 28, 2019, 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)


 

BNP Paribas SA

   $ 3,081      $ —        $ —        $ 3,081      $ —        $ —        $ —        $ —        $ 3,081     $ —        $ 3,081  

HSBC Bank USA

     —          —          —          —          30,771        —          —          30,771        (30,771     —          (30,771
    


  


  


  


  


  


  


  


  


 


  


Total

   $ 3,081      $ —        $ —        $ 3,081      $ 30,771      $ —        $ —        $ 30,771      $ (27,690   $ —        $ (27,690
    


  


  


  


  


  


  


  


  


 


  



(1)

Gross amounts of recognized assets and liabilities not offset in the Statement of Assets and Liabilities.

(2)

For each respective counterparty, collateral pledged or (received) is limited to an amount not to exceed 100% 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

 

Certain Funds may enter 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. Mortgage-Backed Dollar Rolls outstanding at the end of the period, if any, are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities.

 

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. Securities purchased or sold on a when-issued or forward commitment basis outstanding at the end of the period, if any, are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities.

 

F. Loans

 

The Fund invests in senior loans which generally consist of direct debt obligations of companies (collectively, “Borrowers”), primarily U.S. companies and their affiliates, undertaken to finance the growth of the Borrower’s business internally and externally, or to finance a capital restructuring. Transactions in senior loans may settle on a delayed basis. Unsettled loans at the end of the period, if any, are included in investments purchased/sold on an extended settlement basis in the Statement of Assets and Liabilities.

 

G. 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,

 

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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.

 

H. 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.

 

I. 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.

 

J. 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.

 

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.

 

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.

 

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.

 

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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 2015 — 2017 or expected to be taken in each Fund’s 2018 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 2015.

 

K. 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.

 

L. New Accounting Pronouncements

 

In August 2018, the SEC adopted amendments to certain financial statement disclosure requirements of Regulation S-X to conform them to GAAP for investment companies. The final rule became effective on November 5, 2018. All required changes have been made in accordance with Regulation S-X.

 

In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13 “Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement”. The ASU eliminates, modifies, and adds disclosure requirements for fair value measurements and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The ASU allows for early adoption of either the entire standard or only the provisions that eliminate or modify the requirements. Management has elected to early adopt the provisions that eliminate disclosure requirements and is still evaluating the impact of applying the rest of the ASU.

 

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

 

134


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VALIC Company II

NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

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
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:

 

BMO Asset Management Corp. (“BMO AM”)—subadvisor for the Capital Appreciation Fund.

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.

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.

Boston Partners Global Investors, Inc. d/b/a Boston Partners (“Boston Partners”)—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 a portion of the Large Cap Value Fund.

Wellington Management Company LLP—subadviser for the High Yield Bond Fund, Mid Cap Growth Fund and a portion of the Mid 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, 2019. 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 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, 2019, 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

 

135


Table of Contents

VALIC Company II

NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

 

For the six months ended February 28, 2019, pursuant to the contractual expense limitations in the above table, VALIC waived fees and/or reimbursed expenses as follows:

 

Fund


   Amount

 

Aggressive Growth Lifestyle

   $ 107,966  

Capital Appreciation

     72,156  

Conservative Growth Lifestyle

     77,530  

Core Bond

     55,000  

Government Money Market II

     68,264  

High Yield Bond

     39,720  

International Opportunities

     657,440  

Large Cap Value

     90,861  

Mid Cap Growth

     281,726  

Mid Cap Value

     77,191  

Moderate Growth Lifestyle

     148,344  

Small Cap Growth

     55,484  

Small Cap Value

     220,663  

Socially Responsible

     181,634  

 

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, 2019, VALIC did not voluntarily waive expenses to avoid a negative yield 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 VALIC. SunAmerica receives from each Fund in the Series, 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†: 0.0061% on the first $25 billion; 0.0070% on the next $75 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, 2019, 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, 2019, 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, 2019, 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 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, 2019, VC II has deferred $16,418 of trustee compensation.

 

136

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.”


Table of Contents

VALIC Company II

NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

 

At February 28, 2019, the following affiliates owned outstanding shares of the following Funds:

 

     Holder

 

Fund


   American
General Life
Insurance Co.


    The United
States Life
Insurance Co.


    VALIC

    VALIC Co. I
Dynamic
Allocation Fund


    VCII
Aggressive
Growth Lifestyle


    VCII
Conservative
Growth Lifestyle


    VCII
Moderate
Growth Lifestyle


 

Aggressive Growth Lifestyle

     —       —       100.00     —       —       —       —  

Capital Appreciation

     —         —         44.31       6.15       20.21       4.95       24.38  

Conservative Growth Lifestyle

     —         —         100.00       —         —         —         —    

Core Bond

     —         —         90.67       0.78       0.73       2.80       5.02  

Government Money Market II

     —         —         100.00       —         —         —         —    

High Yield Bond

     0.01       —         81.76       0.30       4.57       5.55       7.81  

International Opportunities

     —         —         91.64       0.24       3.59       0.94       3.59  

Large Cap Value

     —         —         62.91       1.29       13.05       3.60       19.15  

Mid Cap Growth

     —         —         89.17       1.21       4.20       0.76       4.66  

Mid Cap Value

     0.30       —         92.32       0.36       2.68       0.87       3.47  

Moderate Growth Lifestyle

     —         —         100.00       —         —         —         —    

Small Cap Growth

     —         —         88.24       2.12       4.52       0.88       4.24  

Small Cap Value

     —         —         88.44       1.04       4.39       1.18       4.95  

Socially Responsible

     0.01       —         99.99       —         —         —         —    

Strategic Bond

     0.05       0.01       75.16       0.37       3.24       7.20       13.97  

 

The VC I Dynamic Allocation Fund and the VC II Lifestyle Funds do not invest in the underlying funds for the purpose of exercising management or control; however, investments by the VC I Dynamic Allocation Fund and the VC II Lifestyle Funds within the set limits across their asset allocations may represent a significant portion of net assets of the underlying funds.

 

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, 2019, transactions in these securities were as follows:

 

Aggressive Growth Lifestyle Fund

 

Security


  Income

    Capital Gain
Distribution
Received


    Value at
08/31/2018


    Cost of
Purchases†


    Proceeds
from Sales


    Realized
Gain/(Loss)


    Change in
Unrealized
Gain/(Loss)


    Value at
02/28/2019


 

VALIC Co. I Blue Chip Growth Fund

  $ —       $ —       $ 11,369,749     $ 1,250,107     $ 9,146,233     $ 1,725,285     $ (3,063,143   $ 2,135,765  

VALIC Co. I Capital Conservation Fund

    —         —         10,920,916       1,155,328       3,360,496       (48,059     291,450       8,959,139  

VALIC Co. I Dividend Value Fund

    —         —         30,651,225       2,364,554       —         —         (623,090     32,392,689  

VALIC Co. I Emerging Economies Fund

    —         —         16,083,395       15,901,619       3,632,121       (1,081,669     2,007,575       29,278,799  

VALIC Co. I Foreign Value Fund

    —         —         29,258,337       7,792,437       5,457,470       (833,979     (913,575     29,845,750  

VALIC Co. I Global Real Estate Fund

    —         —         42,476,598       —         14,450,949       (468,472     810,581       28,367,758  

VALIC Co. I Government Securities Fund

    —         —         —         5,621,879       808,037       22,510       162,486       4,998,838  

VALIC Co. I Inflation Protected Fund

    —         —         27,168,351       —         2,962,985       (16,994     117,162       24,305,534  

VALIC Co. I International Equities Index Fund

    —         —         29,235,953       6,072,176       19,114,858       (2,591,619     726,575       14,328,227  

VALIC Co. I International Government Bond Fund

    —         —         14,790,122       1,765,813       1,616,075       (34,709     488,722       15,393,873  

VALIC Co. I International Growth Fund

    —         —         12,180,810       207,201       3,553,372       404,210       (826,155     8,412,694  

VALIC Co. I Large Cap Core Fund

    —         —         6,400,013       2,765,200       —         —         (351,832     8,813,381  

VALIC Co. I Large Capital Growth Fund

    —         —         3,070,439       7,150,664       5,625,657       (625,571     206,076       4,175,951  

VALIC Co. I Mid Cap Index Fund

    —         —         23,358,328       8,742,337       6,217,451       277,708       (1,336,550     24,824,372  

VALIC Co. I Mid Cap Strategic Growth Fund

    —         —         10,038,114       —         —         —         (135,491     9,902,623  

VALIC Co. I Nasdaq-100® Index Fund

    —         —         15,941,576       2,918,499       —         —         (987,047     17,873,028  

VALIC Co. I Science & Technology Fund

    —         —         22,147,228       4,928,134       —         —         (467,906     26,607,456  

VALIC Co. I Small Cap Index Fund

    —         —         7,771,408       7,730,258       7,140,001       444,131       (485,855     8,319,941  

VALIC Co. I Small Cap Special Values Fund

    —         —         20,114,463       —         7,948,187       461,878       (2,295,508     10,332,646  

VALIC Co. I Stock Index Fund

    —         —         51,100,555       9,024,513       3,510,009       51,956       (1,534,838     55,132,177  

VALIC Co. I Value Fund

    —         —         12,120,568       2,734,587       925,360       383,261       (667,590     13,645,466  

VALIC Co. II Capital Appreciation Fund

    —         —         22,388,386       —         317,458       217,444       (1,229,190     21,059,182  

VALIC Co. II Core Bond Fund

    —         —         10,606,501       8,027,813       7,593,203       (148,204     511,313       11,404,220  

VALIC Co. II High Yield Bond Fund

    —         —         16,835,780       11,124,701       375,066       516       748,931       28,334,862  

VALIC Co. II International Opportunities Fund

    —         —         20,935,917       4,788,341       2,145,242       321,620       (2,514,863     21,385,773  

VALIC Co. II Large Cap Value Fund

    —         —         30,522,454       6,440,289       —         —         (1,387,232     35,575,511  

VALIC Co. II Mid Cap Growth Fund

    —         —         10,058,488       —         —         —         (385,059     9,673,429  

VALIC Co. II Mid Cap Value Fund

    —         —         24,113,525       1,712,335       4,287,303       (27,898     (1,109,815     20,400,844  

VALIC Co. II Small Cap Growth Fund

    —         —         12,585,346       98,740       2,860,308       788,554       (1,560,639     9,051,693  

VALIC Co. II Small Cap Value Fund

    —         —         34,936,655       —         13,954,687       (452,214     (3,137,335     17,392,419  

VALIC Co. II Strategic Bond Fund

    —         —         29,613,913       1,276,712       3,544,452       (171,494     789,964       27,964,643  
   


 


 


 


 


 


 


 


    $             —       $             —       $ 608,795,113     $ 121,594,237     $ 130,546,980     $ (1,401,809   $ (18,151,878   $ 580,288,683  
   


 


 


 


 


 


 


 



Includes reinvestment of distributions paid.

 

137


Table of Contents

VALIC Company II

NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

 

Conservative Growth Lifestyle Fund

 

Security


  Income

    Capital Gain
Distribution
Received


    Value at
08/31/2018


    Cost of
Purchases†


    Proceeds
from Sales


    Realized
Gain/(Loss)


    Change in
Unrealized
Gain/(Loss)


    Value at
02/28/2019


 

VALIC Co. I Blue Chip Growth Fund

  $             —       $             —       $ 355,523     $ 1,343,674     $ 1,479,692     $ (198,846   $ (20,659   $ —    

VALIC Co. I Capital Conservation Fund

    —         —         14,999,827       1,232,335       —         —         337,874       16,570,036  

VALIC Co. I Dividend Value Fund

    —         —         12,063,106       1,520,797       —         —         (275,115.00     13,308,788  

VALIC Co. I Emerging Economies Fund

    —         —         3,858,220       6,340,067       1,978,275       (587,693     958,754.00       8,591,073  

VALIC Co. I Foreign Value Fund

    —         —         12,351,492       4,153,898       5,897,570       (682,781     (50,197     9,874,842  

VALIC Co. I Global Real Estate Fund

    —         —         6,846,871       2,401,589       639,061       (35,635     353,400       8,927,164  

VALIC Co. I Government Securities Fund

    —         —         —         8,025,039       —         —         269,616       8,294,655  

VALIC Co. I Inflation Protected Fund

    —         —         15,263,733       —         1,710,325       (9,528     65,040       13,608,920  

VALIC Co. I International Equities Index Fund

    —         —         13,236,917       7,125,370       17,517,744       (1,994,909     1,063,089       1,912,723  

VALIC Co. I International Government Bond Fund

    —         —         15,035,233       1,830,873       2,164,552       (36,840     485,567       15,150,281  

VALIC Co. I International Growth Fund

    —         —         3,425,602       43,048       1,979,904       (43,884     (103,954     1,340,908  

VALIC Co. I Large Cap Core Fund

    —         —         2,912,942       —         420,058       43,856       (153,215     2,383,525  

VALIC Co. I Large Capital Growth Fund

    —         —         862,699       1,003,050       1,672,901       (166,498     (15,747     10,603  

VALIC Co. I Mid Cap Index Fund

    —         —         7,392,919       7,477,839       8,478,297       (2,217     (145,212     6,245,032  

VALIC Co. I Mid Cap Strategic Growth Fund

    —         —         893,003       802,144       —         —         70,582       1,765,729  

VALIC Co. I Nasdaq-100® Index Fund

    —         —         6,176,313       798,622       1,082,276       (65,764     (424,526     5,402,369  

VALIC Co. I Science & Technology Fund

    —         —         7,061,333       1,894,028       1,095,529       (111,640     2,175       7,750,367  

VALIC Co. I Small Cap Index Fund

    —         —         1,935,641       1,278,122       1,778,375       (2,383     (153,730     1,279,275  

VALIC Co. I Small Cap Special Values Fund

    —         —         9,715,985       —         4,055,914       (60,114     (855,982     4,743,975  

VALIC Co. I Stock Index Fund

    —         —         15,695,830       1,317,374       1,109,819       (7,990     (496,925     15,398,470  

VALIC Co. I Value Fund

    —         —         3,405,935       —         84,853       35,144       (137,516     3,218,710  

VALIC Co. II Capital Appreciation Fund

    —         —         5,505,327       —         96,945       69,845       (319,162     5,159,065  

VALIC Co. II Core Bond Fund

    —         —         23,123,524       20,428,502       685,408       (12,507     940,155       43,794,266  

VALIC Co. II High Yield Bond Fund

    —         —         44,929,098       7,553,434       18,913,839       (602,123     1,387,204       34,353,774  

VALIC Co. II International Opportunities Fund

    —         —         6,722,148       1,278,122       1,687,961       245,588       (986,697     5,571,200  

VALIC Co. II Large Cap Value Fund

    —         —         8,575,886       1,675,861       —         —         (449,638     9,802,109  

VALIC Co. II Mid Cap Growth Fund

    —         —         880,603       831,295       —         —         42,983       1,754,881  

VALIC Co. II Mid Cap Value Fund

    —         —         7,089,162       2,791,798       2,990,440       16,605       (264,979     6,642,146  

VALIC Co. II Small Cap Growth Fund

    —         —         3,738,931       —         1,627,132       45,679       (388,341     1,769,137  

VALIC Co. II Small Cap Value Fund

    —         —         10,879,821       —         5,025,934       (326,110     (877,170     4,650,607  

VALIC Co. II Strategic Bond Fund

    —         —         73,917,970       9,485,478       22,569,422       (1,505,784     2,885,762       62,214,004  
   


 


 


 


 


 


 


 


    $ —       $ —       $ 338,851,594     $ 92,632,359     $ 106,742,226     $ (5,996,529   $ 2,743,436     $ 321,488,634  
   


 


 


 


 


 


 


 



Includes reinvestment of distributions paid.

 

Moderate Growth Lifestyle Fund

 

Security


  Income

    Capital Gain
Distribution
Received


    Value at
08/31/2018


    Cost of
Purchases†


    Proceeds
from Sales


    Realized
Gain/(Loss)


    Change in
Unrealized
Gain/(Loss)


    Value at
02/28/2019


 

VALIC Co. I Blue Chip Growth Fund

  $             —       $             —       $ 17,529,694     $ 1,852,154     $ 10,395,376     $ 1,550,869     $ (3,002,543   $ 7,534,798  

VALIC Co. I Capital Conservation Fund

    —         —         28,866,538       2,345,884       1,744,135       (88,562     716,257       30,095,982  

VALIC Co. I Dividend Value Fund

    —         —         39,505,611       10,124,911       —         —         (959,086     48,671,436  

VALIC Co. I Emerging Economies Fund

    —         —         12,758,533       20,718,098       4,997,303       (1,545,035     2,737,559       29,671,852  

VALIC Co. I Foreign Value Fund

    —         —         37,671,537       4,581,889       14,383,475       (1,921,024     (110,046     25,838,881  

VALIC Co. I Global Real Estate Fund

    —         —         38,517,791       —         12,099,745       (179,012     551,685       26,790,719  

VALIC Co. I Government Securities Fund

    —         —         —         13,572,321       1,308,101       36,441       413,263       12,713,924  

VALIC Co. I Inflation Protected Fund

    —         —         43,099,943       —         4,612,682       (28,554     188,927       38,647,634  

VALIC Co. I International Equities Index Fund

    —         —         42,099,317       7,485,769       36,134,186       (3,689,870     708,825       10,469,855  

VALIC Co. I International Government Bond Fund

    —         —         25,791,156       5,330,103       —         —         883,272       32,004,531  

VALIC Co. I International Growth Fund

    —         —         14,466,933       304,297       7,867,147       1,155,835       (1,867,188     6,192,730  

VALIC Co. I Large Cap Core Fund

    —         —         9,048,778       586,027       —         —         (380,548     9,254,257  

VALIC Co. I Large Capital Growth Fund

    —         —         3,895,884       10,197,996       6,820,230       (717,569     320,337       6,876,418  

VALIC Co. I Mid Cap Index Fund

    —         —         35,954,768       12,147,441       18,057,526       239,351       (1,677,873     28,606,161  

VALIC Co. I Mid Cap Strategic Growth Fund

    —         —         10,996,154       —         —         —         (148,423     10,847,731  

VALIC Co. I Nasdaq-100® Index Fund

    —         —         20,275,685       8,404,419       —         —         (1,304,404     27,375,700  

VALIC Co. I Science & Technology Fund

    —         —         30,167,305       10,577,113       —         —         (460,197     40,284,221  

VALIC Co. I Small Cap Index Fund

    —         —         7,400,536       7,331,023       6,799,261       388,065       (982,724     7,337,639  

 

138


Table of Contents

VALIC Company II

NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

 

Moderate Growth Lifestyle Fund (continued)

 

Security


  Income

    Capital Gain
Distribution
Received


    Value at
08/31/2018


    Cost of
Purchases†


    Proceeds
from Sales


    Realized
Gain/(Loss)


    Change in
Unrealized
Gain/(Loss)


    Value at
02/28/2019


 

VALIC Co. I Small Cap Special Values Fund

  $ —       $ —       $ 29,403,393     $ —       $ 12,463,846     $ 139,021     $ (2,809,200   $ 14,269,368  

VALIC Co. I Stock Index Fund

    —         —         61,363,473       25,302,757       —         —         (1,641,837     85,024,393  

VALIC Co. I Value Fund

    —         —         14,423,156       4,609,204       —         —         (330,348     18,702,012  

VALIC Co. II Capital Appreciation Fund

    —         —         26,863,489       —         242,546       168,390       (1,387,368     25,401,965  

VALIC Co. II Core Bond Fund

    —         —         56,324,113       28,553,504       8,163,630       (266,794     2,031,459       78,478,652  

VALIC Co. II High Yield Bond Fund

    —         —         43,007,529       10,526,101       6,373,184       277,546       947,250       48,385,242  

VALIC Co. II International Opportunities Fund

    —         —         26,109,153       3,665,512       5,572,733       910,117       (3,751,298     21,360,751  

VALIC Co. II Large Cap Value Fund

    —         —         46,001,586       8,469,627       —         —         (2,271,518     52,199,695  

VALIC Co. II Mid Cap Growth Fund

    —         —         11,142,378       —         —         —         (426,552     10,715,826  

VALIC Co. II Mid Cap Value Fund

    —         —         30,856,167       5,498,267       8,644,479       (8,126     (1,288,541     26,413,288  

VALIC Co. II Small Cap Growth Fund

    —         —         15,825,486       —         6,011,790       1,695,321       (3,011,311     8,497,706  

VALIC Co. II Small Cap Value Fund

    —         —         46,506,035       —         22,125,886       (1,912,139     (2,855,078     19,612,932  

VALIC Co. II Strategic Bond Fund

    —         —         138,878,160       10,332,029       31,296,357       (608,534     3,306,530       120,611,828  
   


 


 


 


 


 


 


 


    $             —       $             —       $ 964,750,281     $ 212,516,446     $ 226,113,618     $ (4,404,263   $ (17,860,719   $ 928,888,127  
   


 


 


 


 


 


 


 



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, 2019 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

   $ 121,594,237      $ 130,546,980      $ —        $ —    

Capital Appreciation

     23,014,949        23,309,141        —          —    

Conservative Growth Lifestyle

     92,632,359        106,742,226        —          —    

Core Bond

     495,645,291        413,650,952        365,377,426        183,016,770  

Government Money Market II

     —          —          —          —    

High Yield Bond

     125,028,271        91,879,446        —          —    

International Opportunities

     139,170,366        176,571,141        —          —    

Large Cap Value

     119,824,122        114,756,699        —          —    

Mid Cap Growth

     44,808,712        27,123,790        —          —    

Mid Cap Value

     158,389,724        252,806,777        —          —    

Moderate Growth Lifestyle

     212,516,446        226,113,618        —          —    

Small Cap Growth

     54,956,366        55,308,391        —          —    

Small Cap Value

     129,968,437        204,387,123        —          —    

Socially Responsible

     181,843,859        263,725,293        —          —    

Strategic Bond

     317,093,814        365,791,249        84,372,775        33,188,882  

 

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, treatment of defaulted securities and derivative transactions.

 

The information in the following table is presented on the basis of cost for Federal Income Tax purposes at February 28, 2019.

 

Fund


   Identified Cost
of Investments
Owned


     Gross
Unrealized
Appreciation@


     Gross
Unrealized
Depreciation@


     Net Unrealized
Appreciation
(Depreciation)@


 

Aggressive Growth Lifestyle

   $ 559,575,300      $ 29,324,940      $ (8,611,557    $ 20,713,383  

Capital Appreciation

     90,306,272        15,660,646        (2,977,756      12,682,890  

Conservative Growth Lifestyle

     317,488,271        7,013,627        (3,013,264      4,000,363  

Core Bond

     1,649,799,836        10,487,237        (20,471,989      (9,984,752

Government Money Market II

     120,574,546        —          —          —    

 

139


Table of Contents

VALIC Company II

NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

Fund


   Identified Cost
of Investments
Owned


     Gross
Unrealized
Appreciation@


     Gross
Unrealized
Depreciation@


     Net Unrealized
Appreciation
(Depreciation)@


 

High Yield Bond

   $ 674,801,280      $ 11,335,698      $ (17,100,534    $ (5,764,836

International Opportunities

     522,580,757        112,603,164        (28,471,302      84,131,862  

Large Cap Value

     262,935,184        21,077,825        (12,205,290      8,872,535  

Mid Cap Growth

     207,249,403        31,871,643        (7,877,419      23,994,224  

Mid Cap Value

     712,965,408        89,023,664        (40,694,814      48,328,850  

Moderate Growth Lifestyle

     899,548,413        38,480,840        (9,141,126      29,339,714  

Small Cap Growth

     177,963,470        36,022,408        (12,750,036      23,272,372  

Small Cap Value

     377,437,923        50,140,281        (26,742,708      23,397,573  

Socially Responsible

     534,716,798        210,149,398        (37,706,815      172,442,583  

Strategic Bond

     923,989,678        6,946,057        (17,864,182      (10,918,125

@

Unrealized appreciation (depreciation) includes amounts for derivatives.

 

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, 2018 and the tax character of distributions paid during the year ended August 31, 2018 were as follows:

 

     Distributable Earnings

     Tax Distributions

 
     For the year ended August 31, 2018

 

Fund


   Ordinary
Income


     Long-term
Capital Gains
and  Other
Losses


     Unrealized
Appreciation
(Depreciation)@


     Ordinary
Income


     Long-Term
Capital
Gains


 

Aggressive Growth Lifestyle

   $ 11,408,394      $ 50,153,748      $ 38,865,261      $ 9,804,295      $ 18,613,877  

Capital Appreciation

     4,245,900        22,299,719        17,779,709        434,154        4,650,345  

Conservative Growth Lifestyle

     10,490,382        12,250,183        1,256,927        8,269,513        1,304,182  

Core Bond

     36,081,103        (471,632      (24,152,523      29,745,347        —    

Government Money Market II

     7,922        —          —          1,175,017        3  

High Yield Bond

     29,483,669        (11,302,652      (5,088,671      32,204,893        —    

International Opportunities

     5,797,758        22,610,854        146,441,422        5,841,813        —    

Large Cap Value

     7,370,515        18,912,710        26,783,908        2,959,420        8,272,969  

Mid Cap Growth

     2,607,082        5,580,867        33,646,923        3,368,041        23,021,560  

Mid Cap Value

     10,149,977        132,034,978        123,859,244        3,732,456        68,024,640  

Moderate Growth Lifestyle

     20,315,546        64,453,213        47,200,433        16,737,065        18,327,088  

Small Cap Growth

     6,683,473        38,487,003        45,790,593        —          6,146,636  

Small Cap Value

     11,991,137        47,156,311        92,627,950        17,762,025        23,149,536  

Socially Responsible

     12,859,450        49,830,219        289,038,997        13,352,654        12,605,065  

Strategic Bond

     29,934,832        (12,755,986      (21,161,249      30,340,988        —    

@

Unrealized appreciation (depreciation) includes amounts for derivatives and other assets and liabilities denominated in foreign currency.

 

As of August 31, 2018, for Federal income tax purposes, the Funds indicated below have capital loss carryforwards, which are available to offset future capital gains, if any:

 

     Unlimited

 

Fund


   ST

     LT

 

Aggressive Growth Lifestyle

   $ —        $ —    

Capital Appreciation

     —          —    

Conservative Growth Lifestyle

     —          —    

Core Bond

     471,632        —    

Government Money Market II

     —          —    

High Yield Bond

     2,050,851        9,251,801  

International Opportunities

     —          —    

Large Cap Value

     —          —    

Mid Cap Growth

     —          —    

Mid Cap Value

     —          —    

Moderate Growth Lifestyle

     —          —    

Small Cap Growth

     —          —    

Small Cap Value

     —          —    

 

140


Table of Contents

VALIC Company II

NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

     Unlimited

 

Fund


   ST

     LT

 

Socially Responsible

   $   —        $ —    

Strategic Bond

     —          12,755,986  

 

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, 2018, 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

     —          —          —    

Conservative Growth Lifestyle

     —          —          —    

Core Bond

     —          8,192,783        3,680,765  

Government Money Market II

     —          7,492        —    

High Yield Bond

     —          —          —    

International Opportunities

     —          —          —    

Large Cap Value

     —          —          —    

Mid Cap Growth

     236,748        —          —    

Mid Cap Value

     110,267        —          —    

Moderate Growth Lifestyle

     —          —          —    

Small Cap Growth

     801,899        —          —    

Small Cap Value

     —          —          —    

Socially Responsible

     —          —          —    

Strategic Bond

     —          9,210,959        1,568,953  

 

On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. All required changes have been made in accordance with the Act.

 

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 six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


    For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


 
     Shares

    Amount

    Shares

    Amount

    Shares

    Amount

    Shares

    Amount

 

Shares sold

     1,219,118     $ 12,948,442       2,261,629     $ 25,539,244       270,571     $ 5,080,005       333,830     $ 6,131,430  

Reinvested dividends

     —         —         2,530,559       28,418,172       —         —         270,452       5,084,499  

Shares redeemed

     (2,017,658     (21,420,442     (4,299,771     (48,657,119     (295,743     (5,519,957     (689,625     (12,617,620
    


 


 


 


 


 


 


 


Net increase (decrease)

     (798,540   $ (8,472,000     492,417     $ 5,300,297       (25,172   $ (439,952     (85,343   $ (1,401,691
    


 


 


 


 


 


 


 


     Conservative Growth Lifestyle

    Core Bond

 
     For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


    For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


 
     Shares

    Amount

    Shares

    Amount

    Shares

    Amount

    Shares

    Amount

 

Shares sold

     599,932     $ 7,163,232       2,377,368     $ 29,437,020       31,124,009     $ 334,653,859       29,511,097     $ 323,398,151  

Reinvested dividends

     —         —         784,086       9,573,695       —         —         2,798,245       29,745,347  

Shares redeemed

     (1,776,082     (21,055,420     (3,319,276     (41,064,118     (7,607,396     (81,765,198     (12,929,573     (140,882,086
    


 


 


 


 


 


 


 


Net increase (decrease)

     (1,176,150   $ (13,892,188     (157,822   $ (2,053,403     23,516,613     $ 252,888,661       19,379,769     $ 212,261,412  
    


 


 


 


 


 


 


 


 

141


Table of Contents

VALIC Company II

NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

     Government Money Market II

    High Yield Bond

 
     For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


    For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


 
     Shares

    Amount

    Shares

    Amount

    Shares

    Amount

    Shares

    Amount

 

Shares sold

     24,834,613     $ 24,834,613       68,624,800     $ 68,624,800       12,169,129     $ 91,131,664       11,100,701     $ 86,814,583  

Reinvested dividends

     989,541       989,541       1,175,020       1,175,020       —         —         4,322,804       32,204,893  

Shares redeemed

     (44,179,999     (44,179,999     (65,749,606     (65,749,606     (8,039,732     (60,060,678     (11,359,541     (88,505,311
    


 


 


 


 


 


 


 


Net increase (decrease)

     (18,355,845   $ (18,355,845     4,050,214     $ 4,050,214       4,129,397     $ 31,070,986       4,063,964     $ 30,514,165  
    


 


 


 


 


 


 


 


     International Opportunities

    Large Cap Value

 
     For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


    For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


 
     Shares

    Amount

    Shares

    Amount

    Shares

    Amount

    Shares

    Amount

 

Shares sold

     1,972,348     $ 36,778,421       3,699,729     $ 76,917,051       851,953     $ 18,140,860       2,543,267     $ 56,659,816  

Reinvested dividends

     —         —         265,537       5,841,813       —         —         505,508       11,232,389  

Shares redeemed

     (4,906,779     (94,854,664     (4,618,761     (98,052,241     (711,301     (15,307,010     (1,537,976     (34,393,009
    


 


 


 


 


 


 


 


Net increase (decrease)

     (2,934,431   $ (58,076,243     (653,495   $ (15,293,377     140,652     $ 2,833,852       1,510,799     $ 33,499,196  
    


 


 


 


 


 


 


 


     Mid Cap Growth

    Mid Cap Value

 
     For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


    For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


 
     Shares

    Amount

    Shares

    Amount

    Shares

    Amount

    Shares

    Amount

 

Shares sold

     3,060,844     $ 29,590,710       6,349,160     $ 67,710,409       1,150,829     $ 23,420,824       2,219,283     $ 48,598,719  

Reinvested dividends

     —         —         2,513,295       26,389,601       —         —         3,290,101       71,757,096  

Shares redeemed

     (1,288,929     (12,436,754     (1,591,525     (17,636,947     (6,154,195     (126,505,849     (13,359,809     (303,976,044
    


 


 


 


 


 


 


 


Net increase (decrease)

     1,771,915     $ 17,153,956       7,270,930     $ 76,463,063       (5,003,366   $ (103,085,025     (7,850,425   $ (183,620,229
    


 


 


 


 


 


 


 


     Moderate Growth Lifestyle

    Small Cap Growth

 
     For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


    For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


 
     Shares

    Amount

    Shares

    Amount

    Shares

    Amount

    Shares

    Amount

 

Shares sold

     1,521,924     $ 21,817,454       3,727,590     $ 55,563,392       1,261,096     $ 26,068,771       3,205,402     $ 65,066,801  

Reinvested dividends

     —         —         2,364,407       35,064,153       —         —         275,881       6,146,636  

Shares redeemed

     (2,460,915     (34,957,914     (4,798,128     (71,646,941     (1,328,205     (27,001,751     (2,330,204     (48,215,461
    


 


 


 


 


 


 


 


Net increase (decrease)

     (938,991   $ (13,140,460     1,293,869     $ 18,980,604       (67,109   $ (932,980     1,151,079     $ 22,997,976  
    


 


 


 


 


 


 


 


     Small Cap Value

    Socially Responsible

 
     For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


    For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


 
     Shares

    Amount

    Shares

    Amount

    Shares

    Amount

    Shares

    Amount

 

Shares sold

     2,064,858     $ 28,381,109       2,328,908     $ 35,596,185       440,779     $ 9,273,534       742,747     $ 16,277,508  

Reinvested dividends

     —         —         2,630,969       40,911,561       —         —         1,164,545       25,957,719  

Shares redeemed

     (8,153,372     (114,640,166     (7,571,033     (118,265,313     (3,302,785     (73,059,809     (7,434,125     (161,992,247
    


 


 


 


 


 


 


 


Net increase (decrease)

     (6,088,514   $ (86,259,057     (2,611,156   $ (41,757,567     (2,862,006   $ (63,786,275     (5,526,833   $ (119,757,020
    


 


 


 


 


 


 


 


     Strategic Bond

                         
     For the six months ended
February 28,  2019
(unaudited)


    For the year ended
August 31, 2018


                         
     Shares

    Amount

    Shares

    Amount

                         

Shares sold

     8,337,981     $ 90,640,623       17,840,623     $ 200,318,993                                  

Reinvested dividends

     —         —         2,814,563       30,340,988                                  

Shares redeemed

     (9,181,447     (99,503,500     (7,925,949     (88,522,743                                
    


 


 


 


                               

Net increase (decrease)

     (843,466   $ (8,862,877     12,729,237     $ 142,137,238                                  
    


 


 


 


                               

 

142


Table of Contents

VALIC Company II

NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

 

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, 2019, 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.

 

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 (“State Street”), the Series’ custodian. Interest is currently payable under the committed line of credit at 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 and State Street’s discretionary bid rate on the uncommitted line of credit. The Series, on behalf of each of the Funds, has paid State Street for its own account, such Fund’s ratable portion of an upfront fee in an amount equal to $25,000 in the aggregate for the uncommitted lines of credit made available by State Street to the Series and certain other funds managed by the Adviser, which are also party to the uncommitted lines of credit. There is also a commitment fee of 25 basis points per annum on the daily unused portion of the committed line of credit. For the six months ended February 28, 2019, the following Funds had borrowings:

 

Fund


   Days
Outstanding


     Interest
Charges


     Average
Debt
Utilized


     Weighted
Average
Interest


 

High Yield Bond

     1      $ 97      $ 958,295        3.63

International Opportunities

     2        206        1,047,303        3.56

Large Cap Value

     13        508        407,310        3.56

Mid Cap Growth

     1        61        579,213        3.76

Mid Cap Value

     1        14        133,974        3.63

Moderate Growth Lifestyle

     5        285        580,165        3.53

Small Cap Growth

     1        291        2,941,773        3.56

Small Cap Value

     1        10        103,358        3.63

Socially Responsible

     18        7,316        4,175,655        3.48

 

At February 28, 2019, 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, 2019, none of the Funds participated in this program.

 

143


Table of Contents

VALIC Company II

NOTES TO FINANCIAL STATEMENTS (unaudited)(continued)


 

 

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, 2019, the following Funds engaged in security transactions with affiliated Funds:

 

Fund


   Cost of
Purchases


     Proceeds
from Sales


     Realized
Gain/
(Loss)


 

International Opportunities

   $ 24,007      $ 406,687      $ 42,918  

Mid Cap Growth

     145,726        309,287        (12,801

Mid Cap Value

     524,566        200,753        (43,172

 

Note 12 Unfunded Loan Commitments

 

At February 28, 2019, Strategic Bond Fund had the following unfunded loan commitments which could be extended at the option of the Borrower:

 

Borrower


   Type

     Maturity
Date


     Principal
Amount


     Value

 

Mavis Tire Express Services Corp., Inc.

     Delayed Draw        03/20/2025      $ 51,217      $ 49,936  

 

144


Table of Contents

VALIC Company II

FINANCIAL HIGHLIGHTS


 

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,
2019
(f)


    Year Ended August 31,

    Six Months
Ended
February  28,
2019
(f)


    Year Ended August 31,

 
    2018

    2017

    2016

    2015

    2014

    2018

    2017

    2016

    2015

    2014

 

PER SHARE DATA

                                                                                               

Net asset value at beginning of period

  $ 11.34     $ 10.68     $ 10.41     $ 10.67   $ 12.04     $ 10.30     $ 20.13     $ 16.55     $ 15.99     $ 16.35   $ 15.88     $ 12.82  
   


 


Income (loss) from investment operations:

                                                                                               

Net investment income (loss)(d)

    (0.01     0.17       0.16       0.19       0.20       0.18       0.04       0.04       0.08       0.09       0.06       0.05  

Net realized and unrealized gain (loss) on investments and foreign currencies

    (0.35     1.04       0.93       0.56       (0.52     1.77       (0.96     4.51       2.12       1.20       0.46       3.08  

Net increase from payments by affiliates

                                                                       
   


 


Total income (loss) from investment operations

    (0.36     1.21       1.09       0.75     (0.32     1.95       (0.92     4.55       2.20       1.29     0.52       3.13  
   


 


Distributions from:

                                                                                               

Net investment income

          (0.16     (0.21     (0.23     (0.19     (0.11           (0.08     (0.08     (0.06     (0.05     (0.07

Net realized gain on securities

          (0.39     (0.61     (0.78     (0.86     (0.10           (0.89     (1.56     (1.59            
   


 


Total distributions

          (0.55     (0.82     (1.01     (1.05     (0.21           (0.97     (1.64     (1.65     (0.05     (0.07
   


 


Net asset value at end of period

  $ 10.98     $ 11.34     $ 10.68     $ 10.41   $ 10.67     $ 12.04     $ 19.21     $ 20.13     $ 16.55     $ 15.99   $ 16.35     $ 15.88  
   


 


TOTAL RETURN(a)

    (3.17 )%      11.39     10.61     7.53     (3.17 )%      19.03     (4.57 )%      27.94     14.13     8.33     3.28     24.43
   


 


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)

    0.14 %(e)(g)      0.14 %(e)      0.14 %(e)      0.15 %(e)      0.14 %(e)      0.14 %(e)      0.99 %(g)      0.99     0.99     1.00     0.98     0.99

Ratio of expense reductions to average net assets

                                        0.00 %(g)      0.01     0.01     0.01     0.01     0.01

Ratio of net investment income (loss) to average net assets(b)

    (0.10 )%(e)(g)      1.49 %(e)      1.47 %(e)      1.78 %(e)      1.71 %(e)      1.56 %(e)      0.43 %(g)      0.22     0.50     0.52     0.36     0.31

Ratio of net investment income (loss) to average net assets(c)

    (0.14 )%(e)(g)      1.45 %(e)      1.44 %(e)      1.73 %(e)      1.67 %(e)      1.52 %(e)      0.29 %(g)      0.08     0.36     0.37     0.23     0.17

Portfolio turnover rate

    21     49     36     24     31     32     23     124     66     54     44     44

Number of shares outstanding at end of period (000’s)

    52,861       53,660       53,168       51,410       47,707       42,546       5,424       5,449       5,535       5,313       5,014       5,491  

Net assets at the end of period (000’s)

  $ 580,401     $ 608,709     $ 567,843     $ 535,245     $ 508,890     $ 512,113     $ 104,172     $ 109,697     $ 91,579     $ 84,946     $ 81,961     $ 87,214  

 

(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

 

145


Table of Contents

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,
2019
(f)


    Year Ended August 31,

    Six Months
Ended
February  28,
2019
(f)


    Year Ended August 31,

 
    2018

    2017

    2016

    2015

    2014

    2018

    2017

    2016

    2015

    2014

 

PER SHARE DATA

                                                                                               

Net asset value at beginning of period

  $ 12.31     $ 12.07     $ 11.82     $ 11.95     $ 13.12     $ 12.13     $ 10.74     $ 11.15     $ 11.30     $ 10.93     $ 11.09     $ 10.69  
   


 


Income (loss) from investment operations:

                                                                                               

Net investment income (loss)(d)

    (0.01     0.31       0.28       0.30       0.31       0.29       0.16       0.30       0.27       0.24       0.23       0.24  

Net realized and unrealized gain (loss) on investments and foreign currencies

    (0.09     0.28       0.39       0.41       (0.62     1.31       0.03       (0.45     (0.12     0.38       (0.16     0.44  

Net increase from payments by affiliates

                                                                       
   


 


Total income (loss) from investment operations

    (0.10     0.59       0.67       0.71       (0.31     1.60       0.19       (0.15     0.15       0.62       0.07       0.68  
   


 


Distributions from:

                                                                                               

Net investment income

          (0.28     (0.32     (0.34     (0.29     (0.26           (0.26     (0.30     (0.22     (0.23     (0.20

Net realized gain on securities

          (0.07     (0.10     (0.50     (0.57     (0.35           (0.00           (0.03           (0.08
   


 


Total distributions

          (0.35     (0.42     (0.84     (0.86     (0.61           (0.26     (0.30     (0.25     (0.23     (0.28
   


 


Net asset value at end of period

  $ 12.21     $ 12.31     $ 12.07     $ 11.82     $ 11.95     $ 13.12     $ 10.93     $ 10.74     $ 11.15     $ 11.30     $ 10.93     $ 11.09  
   


 


TOTAL RETURN(a)

    (0.81 )%      4.94     5.76     6.19     (2.65 )%      13.34     1.77     (1.32 )%      1.37     5.78     0.62     6.44
   


 


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)

    0.15 %(e)(g)      0.15 %(e)      0.15 %(e)      0.15 %(e)      0.14 %(e)      0.15 %(e)      0.78 %(g)      0.78     0.80     0.79     0.79     0.80

Ratio of expense reductions to average net assets

                                                                       

Ratio of net investment income (loss) to average net assets(b)

    (0.10 )%(e)(g)      2.47 %(e)      2.31 %(e)      2.51 %(e)      2.45 %(e)      2.26 %(e)      3.13 %(g)      2.80     2.40     2.16     2.10     2.24

Ratio of net investment income (loss) to average net assets(c)

    (0.15 )%(e)(g)      2.43 %(e)      2.27 %(e)      2.46 %(e)      2.40 %(e)      2.22 %(e)      3.12 %(g)      2.78     2.37     2.15     2.08     2.21

Portfolio turnover rate

    29     44     38     27     33     31     44     73     76     139     153     169

Number of shares outstanding at end of period (000’s)

    26,340       27,516       27,674       27,779       27,270       24,601       142,948       119,431       100,052       106,434       97,489       85,364  

Net assets at the end of period (000’s)

  $ 321,488     $ 338,793     $ 333,907     $ 328,390     $ 325,797     $ 322,764     $ 1,563,095     $ 1,282,586     $ 1,115,936     $ 1,202,915     $ 1,065,803     $ 946,699  

 

(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

 

146


Table of Contents

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,
2019
(f)


    Year Ended August 31,

    Six Months
Ended
February  28,
2019
(f)


    Year Ended August 31,

 
    2018

    2017

    2016

    2015

    2014

    2018

    2017

    2016

    2015

    2014

 

PER SHARE DATA

                                                                                               

Net asset value at beginning of period

  $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 7.53     $ 7.75     $ 7.56     $ 7.40   $ 7.93     $ 7.63  
   


 


Income (loss) from investment operations:

                                                                                               

Net investment income (loss)(d)

    0.01       0.01       0.00       0.00       0.00       0.00       0.20       0.40       0.41       0.37       0.38       0.41  

Net realized and unrealized gain (loss) on investments and foreign currencies

    (0.00     (0.00     0.00       0.00       0.00       0.00       (0.05     (0.18     0.15       0.13       (0.53     0.28  

Net increase from payments by affiliates

                            0.00                                            
   


 


Total income (loss) from investment operations

    0.01       0.01       0.00       0.00       0.00       0.00       0.15       0.22       0.56       0.50     (0.15     0.69  
   


 


Distributions from:

                                                                                               

Net investment income

    (0.01     (0.01     (0.00     (0.00     (0.00     (0.00           (0.44     (0.37     (0.34     (0.38     (0.39

Net realized gain on securities

                                                                       
   


 


Total distributions

    (0.01     (0.01     (0.00     (0.00     (0.00     (0.00           (0.44     (0.37     (0.34     (0.38     (0.39
   


 


Net asset value at end of period

  $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 7.68     $ 7.53     $ 7.75     $ 7.56   $ 7.40     $ 7.93  
   


 


TOTAL RETURN(a)

    0.83     0.91     0.16     0.01     0.01 %(e)      0.01     1.99     2.89     7.54     7.07     (2.02 )%      9.10
   


 


RATIOS/SUPPLEMENTAL DATA

                                                                                               

Ratio of expenses to average net assets(b)

    0.55 %(g)      0.55     0.50     0.32     0.15     0.15     0.96 %(g)      0.96     0.96     0.96     0.96     0.96

Ratio of expenses to average net assets(c)

    0.66 %(g)      0.65     0.70     0.66     0.64     0.63     0.97 %(g)      0.97     0.97     0.99     0.98     0.99

Ratio of expense reductions to average net assets

                                                                       

Ratio of net investment income (loss) to average net assets(b)

    1.66 %(g)      0.91     0.16     0.01     0.01     0.01     5.51 %(g)      5.16     5.27     5.16     5.00     5.25

Ratio of net investment income (loss) to average net assets(c)

    1.54 %(g)      0.81     (0.04 )%      (0.33 )%      (0.48 )%      (0.47 )%      5.50 %(g)      5.15     5.26     5.13     4.97     5.22

Portfolio turnover rate

    N/A       N/A       N/A       N/A       N/A       N/A       17     26     52     36     36     37

Number of shares outstanding at end of period (000’s)

    118,610       136,966       132,916       141,263       159,882       170,830       80,654       76,525       72,461       78,148       63,332       53,018  

Net assets at the end of period (000’s)

  $ 118,631     $ 136,987     $ 132,944     $ 141,291     $ 159,905     $ 170,575     $ 619,440     $ 576,553     $ 561,480     $ 590,679     $ 468,855     $ 420,459  

 

(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

 

147


Table of Contents

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

 
    Six Months
Ended
February  28,
2019
(e)


    Year Ended August 31,

    Six Months
Ended
February  28,
2019
(e)


    Year Ended August 31,

 
    2018

    2017

    2016

    2015

    2014

    2018

    2017

    2016

    2015

    2014

 

PER SHARE DATA

                                                                                               

Net asset value at beginning of period

  $ 21.31     $ 19.38     $ 16.00     $ 15.08   $ 15.50     $ 13.78     $ 22.76     $ 20.66     $ 18.41     $  17.08     $ 17.58     $ 14.51  
   


 


Income (loss) from investment operations:

                                                                                               

Net investment income (loss)(d)

    0.01       0.13       0.14       0.14       0.16       0.16       0.18       0.30       0.24       0.27       0.20       0.22  

Net realized and unrealized gain (loss) on investments and foreign currencies

    (2.15     1.97       3.49       0.94       (0.38     1.75       (1.34     2.80       2.27       1.27       (0.46     3.04  

Net increase from payments by affiliates

                                                                       
   


 


Total income (loss) from investment operations

    (2.14     2.10       3.63       1.08     (0.22     1.91       (1.16     3.10       2.51       1.54       (0.26     3.26  
   


 


Distributions from:

                                                                                               

Net investment income

          (0.17     (0.25     (0.16     (0.20     (0.19           (0.26     (0.26     (0.21     (0.24     (0.19

Net realized gain on securities

                                              (0.74                        
   


 


Total distributions

          (0.17     (0.25     (0.16     (0.20     (0.19           (1.00     (0.26     (0.21     (0.24     (0.19
   


 


Net asset value at end of period

  $ 19.17     $ 21.31     $ 19.38     $ 16.00   $ 15.08     $ 15.50     $ 21.60     $ 22.76     $ 20.66     $ 18.41     $ 17.08     $ 17.58  
   


 


TOTAL RETURN(a)

    (10.04 )%      10.81     22.81     7.23     (1.50 )%      13.88     (5.10 )%      15.12     13.66     9.09     (1.56 )%      22.55
   


 


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)

    1.22 %(f)      1.20     1.22     1.21     1.21     1.21     0.88 %(f)      0.88     0.88     0.89     0.88     0.88

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     0.01

Ratio of net investment income (loss) to average net assets(b)

    0.08 %(f)      0.61     0.82     0.91     1.02     1.05     1.73 %(f)      1.35     1.21     1.59     1.11     1.31

Ratio of net investment income (loss) to average net assets(c)

    (0.14 )%(f)      0.41     0.60     0.70     0.81     0.84     1.67 %(f)      1.27     1.14     1.51     1.04     1.24

Portfolio turnover rate

    23     46     62     58     59     72     43     90     77     71     72     54

Number of shares outstanding at end of period (000’s)

    31,049       33,984       34,637       37,260       39,548       37,851       12,621       12,480       10,969       12,540       11,333       12,597  

Net assets at the end of period (000’s)

  $ 595,348     $ 724,027     $ 671,097     $ 596,055     $ 596,301     $ 586,631     $ 272,637     $ 284,086     $ 226,626     $ 230,844     $ 193,602     $ 221,453  

 

(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

 

148


Table of Contents

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

 
    Six Months
Ended
February  28,
2019
(e)


    Year Ended August 31,

    Six Months
Ended
February  28,
2019
(e)


    Year Ended August 31,

 
    2018

    2017

    2016

    2015

    2014

    2018

    2017

    2016

    2015

    2014

 

PER SHARE DATA

                                                                                               

Net asset value at beginning of period

  $ 10.71     $ 10.06     $ 8.42     $ 8.81     $ 10.13     $ 9.76     $  22.13     $ 21.23     $ 20.45     $ 21.82     $ 25.15     $ 21.66  
   


 


Income (loss) from investment operations:

                                                                                               

Net investment income (loss)(d)

    0.00       (0.02     0.00       (0.02     (0.02     (0.05     0.09       0.09       0.07       0.14       0.07       0.05  

Net realized and unrealized gain (loss) on investments and foreign currencies

    (0.41     2.56       1.64       0.24       0.27       1.33       (1.33     2.62       2.17       1.73       (0.82     5.06  

Net increase from payments by affiliates

                                                                       
   


 


Total income (loss) from investment operations

    (0.41     2.54       1.64       0.22       0.25       1.28       (1.24     2.71       2.24       1.87       (0.75     5.11  
   


 


Distributions from:

                                                                                               

Net investment income

          (0.02                       (0.01           (0.09     (0.13     (0.06     (0.05     (0.08

Net realized gain on securities

          (1.87           (0.61     (1.57     (0.90           (1.72     (1.33     (3.18     (2.53     (1.54
   


 


Total distributions

          (1.89           (0.61     (1.57     (0.91           (1.81     (1.46     (3.24     (2.58     (1.62
   


 


Net asset value at end of period

  $ 10.30     $ 10.71     $ 10.06     $ 8.42     $ 8.81     $ 10.13     $  20.89     $ 22.13     $ 21.23     $ 20.45     $ 21.82     $ 25.15  
   


 


TOTAL RETURN(a)

    (3.83 )%      25.54     19.48     3.01     1.66     13.86     (5.60 )%      12.90     11.02     9.62     (3.61 )%      23.97
   


 


RATIOS/SUPPLEMENTAL DATA

                                                                                               

Ratio of expenses to average net assets(b)

    0.85 %(f)      0.85     0.85     0.85     0.85     0.85     1.05 %(f)      1.05     1.05     1.05     1.05     1.05

Ratio of expenses to average net assets(c)

    1.12 %(f)      1.15     1.17     1.17     1.14     1.17     1.07 %(f)      1.05     1.05     1.06     1.06     1.05

Ratio of expense reductions to average net assets

    0.00 %(f)      0.00     0.00     0.01     0.01     0.01     0.00 %(f)      0.00     0.00     0.00     0.00     0.00

Ratio of net investment income (loss) to average net assets(b)

    0.02 %(f)      (0.18 )%      0.04     (0.27 )%      (0.26 )%      (0.47 )%      0.87 %(f)      0.40     0.32     0.65     0.28     0.22

Ratio of net investment income (loss) to average net assets(c)

    (0.25 )%(f)      (0.49 )%      (0.28 )%      (0.59 )%      (0.54 )%      (0.79 )%      0.85 %(f)      0.40     0.32     0.64     0.27     0.22

Portfolio turnover rate

    13     35     162     92     102     175     21     44     44     44     56     29

Number of shares outstanding at end of period (000’s)

    22,356       20,584       13,313       14,338       17,507       16,118       36,408       41,411       49,262       48,776       42,460       38,551  

Net assets at the end of period (000’s)

  $ 230,197     $ 220,444     $ 133,988     $ 120,774     $ 154,291     $ 163,273     $ 760,496     $ 916,284     $ 1,046,046     $ 997,576     $ 926,580     $ 969,591  

 

(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

 

149


Table of Contents

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,
2019
(f)


    Year Ended August 31,

    Six Months
Ended
February  28,
2019
(f)


    Year Ended August 31,

 
    2018

    2017

    2016

    2015

    2014

    2018

    2017

    2016

    2015

    2014

 

PER SHARE DATA

                                                                                               

Net asset value at beginning of period

  $ 15.00     $ 14.23     $ 13.98     $ 14.09     $ 15.61     $ 13.93     $  23.31     $ 16.98     $ 14.20     $ 15.31     $ 16.27     $ 16.11  
   


 


Income (loss) from investment operations:

                                                                                               

Net investment income (loss)(d)

    (0.01     0.26       0.24       0.30       0.29       0.28       (0.06     (0.12     (0.08     (0.03     (0.04     (0.14

Net realized and unrealized gain (loss) on investments and foreign currencies

    (0.33     1.08       0.92       0.70       (0.65     1.99       (1.39     7.14       3.72       0.42       0.97       1.68  

Net increase from payments by affiliates

                                                                       
   


 


Total income (loss) from investment operations

    (0.34     1.34       1.16       1.00       (0.36     2.27       (1.45     7.02       3.64       0.39       0.93       1.54  
   


 


Distributions from:

                                                                                               

Net investment income

          (0.24     (0.32     (0.32     (0.28     (0.20                                    

Net realized gain on securities

          (0.33     (0.59     (0.79     (0.88     (0.39           (0.69     (0.86     (1.50     (1.89     (1.38
   


 


Total distributions

          (0.57     (0.91     (1.11     (1.16     (0.59           (0.69     (0.86     (1.50     (1.89     (1.38
   


 


Net asset value at end of period

  $ 14.66     $ 15.00     $ 14.23     $ 13.98     $ 14.09     $ 15.61     $  21.86     $ 23.31     $ 16.98     $ 14.20     $ 15.31     $ 16.27  
   


 


TOTAL RETURN(a)

    (2.27 )%      9.44     8.42     7.48     (2.68 )%      16.46     (6.22 )%      41.51     26.05     4.40     5.26     10.33
   


 


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)      0.13 %(e)      0.14 %(e)      0.14 %(e)      0.13 %(e)      0.13 %(e)   

 

1.22

%(g) 

    1.22     1.25     1.29     1.25     1.26

Ratio of expense reduction to average net assets

                                        0.01 %(g)      0.00     0.00     0.01     0.01     0.00

Ratio of net investment income (loss) to average net assets(b)

    (0.10 )%(e)(g)      1.75 %(e)      1.68 %(e)      2.15 %(e)      1.92 %(e)      1.84 %(e)      (0.59 )%(g)      (0.61 )%      (0.53 )%      (0.22 )%      (0.25 )%      (0.83 )% 

Ratio of net investment income (loss) to average net assets(c)

    (0.13 )%(e)(g)      1.72 %(e)      1.65 %(e)      2.11 %(e)      1.89 %(e)      1.81 %(e)      (0.65 )%(g)      (0.67 )%      (0.62 )%      (0.35 )%      (0.34 )%      (0.93 )% 

Portfolio turnover rate

    23     47     36     33     30     27     29     63     40     39     49     63

Number of shares outstanding at end of period (000’s)

    63,358       64,297       63,003       60,581       56,655       51,152       9,172       9,239       8,088       7,035       7,185       7,001  

Net assets at the end of period (000’s)

  $ 928,749     $ 964,607     $ 896,346     $ 846,974     $ 798,444     $ 798,521     $ 200,483     $ 215,384     $ 137,330     $ 99,884     $ 110,029     $ 113,907  

 

(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

 

150


Table of Contents

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,
2019
(e)


    Year Ended August 31,

    Six Months
Ended
February  28,
2019
(e)


    Year Ended August 31,

 
    2018

    2017

    2016

    2015

    2014

    2018

    2017

    2016

    2015

    2014

 

PER SHARE DATA

                                                                                               

Net asset value at beginning of period

  $  15.74     $ 14.47     $ 13.57     $ 14.01     $ 16.65     $ 15.83     $  23.09     $ 20.15     $ 19.23     $ 18.55     $ 18.56     $ 14.84  
   


 


Income (loss) from investment operations:

                                                                                               

Net investment income (loss)(d)

    0.09       0.15       0.11       0.13       0.17       0.09       0.16       0.30       0.29       0.28       0.26       0.22  

Net realized and unrealized gain (loss) on investments and foreign currencies

    (1.62     2.36       1.48       1.27       (0.56     2.70       (0.75     3.39       2.33       1.89       (0.05     3.74  

Net increase from payments by affiliates

                                                                       
   


 


Total income (loss) from investment operations

    (1.53     2.51       1.59       1.40       (0.39     2.79       (0.59     3.69       2.62       2.17       0.21       3.96  
   


 


Distributions from:

                                                                                               

Net investment income

          (0.13     (0.14     (0.17     (0.10     (0.17           (0.35     (0.29     (0.28     (0.22     (0.24

Net realized gain on securities

          (1.11     (0.55     (1.67     (2.15     (1.80           (0.40     (1.41     (1.21            
   


 


Total distributions

          (1.24     (0.69     (1.84     (2.25     (1.97           (0.75     (1.70     (1.49     (0.22     (0.24
   


 


Net asset value at end of period

  $  14.21     $ 15.74     $ 14.47     $ 13.57     $ 14.01     $ 16.65     $  22.50     $ 23.09     $ 20.15     $ 19.23     $ 18.55     $ 18.56  
   


 


TOTAL RETURN(a)

    (9.72 )%      17.40     11.61     11.27     (3.38 )%      18.39     (2.56 )%      18.49     13.90     12.16     1.06     26.82
   


 


RATIOS/SUPPLEMENTAL DATA

                                                                                               

Ratio of expenses to average net assets(b)

    0.95 %(f)      0.95     0.95     0.95     0.95     0.95     0.56 %(f)      0.56     0.56     0.56     0.56     0.56

Ratio of expenses to average net assets(c)

    1.05 %(f)      1.03     1.03     1.04     1.03     1.03     0.61 %(f)      0.61     0.61     0.61     0.61     0.61

Ratio of expense reductions to average net assets

    0.01 %(f)      0.00     0.00     0.00     0.00     0.01                                    

Ratio of net investment income (loss) to average net assets(b)

    1.21 %(f)      0.96     0.71     0.98     1.02     0.54     1.45 %(f)      1.37     1.46     1.47     1.35     1.29

Ratio of net investment income (loss) to average net assets(c)

    1.11 %(f)      0.88     0.62     0.89     0.95     0.46     1.40 %(f)      1.33     1.41     1.42     1.31     1.25

Portfolio turnover rate

    30     46     79     59     50     47     26     5     0     25     31     26

Number of shares outstanding at end of period (000’s)

    27,882       33,971       36,582       37,866       34,784       33,516       31,313       34,175       39,701       39,360       39,153       36,604  

Net assets at the end of period (000’s)

  $ 396,304     $ 534,548     $ 529,505     $ 513,783     $ 487,157     $ 558,170     $ 704,490     $ 789,118     $ 799,898     $ 756,821     $ 726,460     $ 679,235  

 

(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

 

151


Table of Contents

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,
2019
(c)


    Year Ended August 31,

 
    2018

    2017

    2016

    2015

    2014

 

PER SHARE DATA

                                               

Net asset value at beginning of period

  $ 10.86     $ 11.38     $ 11.28     $ 11.00   $ 11.77     $ 11.23  
   


Income (loss) from investment operations:

                                               

Net investment income (loss)(b)

    0.22       0.42       0.39       0.38       0.42       0.48  

Net realized and unrealized gain (loss) on investments and foreign currencies

    0.03       (0.53     0.13       0.39       (0.68     0.62  

Net increase from payments by affiliates

                                   
   


Total income (loss) from investment operations

    0.25       (0.11     0.52       0.77     (0.26     1.10  
   


Distributions from:

                                               

Net investment income

          (0.41     (0.42     (0.45     (0.41     (0.44

Net realized gain on securities

                      (0.04     (0.10     (0.12
   


Total distributions

          (0.41     (0.42     (0.49     (0.51     (0.56
   


Net asset value at end of period

  $ 11.11     $ 10.86     $ 11.38     $ 11.28   $ 11.00     $ 11.77  
   


TOTAL RETURN(a)

    2.30     (0.96 )%      4.75     7.15     (2.32 )%      9.89
   


RATIOS/SUPPLEMENTAL DATA

                                               

Ratio of expenses to average net assets

    0.87 %(d)      0.87     0.88     0.88     0.87     0.88

Ratio of expenses to average net assets

    0.87 %(d)      0.87     0.88     0.88     0.87     0.88

Ratio of expense reductions to average net assets

                                   

Ratio of net investment income (loss) to average net assets

    4.12 %(d)      3.73     3.48     3.51     3.67     4.11

Ratio of net investment income (loss) to average net assets

    4.12 %(d)      3.73     3.48     3.51     3.67     4.11

Portfolio turnover rate

    49     133     118     162     132     150

Number of shares outstanding at end of period (000’s)

    77,730       78,574       65,845       72,983       71,428       64,149  

Net assets at the end of period (000’s)

  $ 863,543     $ 853,401     $ 749,055     $ 823,464     $ 785,635     $ 755,092  

 

(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) 

The per share amounts are calculated using the average share method.

(c)

Unaudited

(d)

Annualized

 

See Notes to Financial Statements

 

152


Table of Contents

VALIC Company II

  


 

BOARD OF TRUSTEES

Thomas J. Brown

Judith L. Craven

Timothy J. Ebner

Gustavo E. Gonzales, Jr.

Peter A. Harbeck

Kenneth J. Lavery

Eric S. Levy

John E. Maupin, Jr.

 

CUSTODIAN

State Street Bank and Trust Company

One Lincoln Street

Boston, Massachusetts 02111

 

INVESTMENT ADVISER

The Variable Annuity

Life Insurance Company (VALIC)

2929 Allen Parkway

Houston, Texas 77019

 

INVESTMENT SUBADVISERS

BMO Asset Management Corp.

115 S. LaSalle Street

Chicago, Illinois 60603

 

Delaware Investments Fund Advisers

2005 Market Street

Philadelphia, PA 19103

 

J.P. Morgan Investment Management Inc.

270 Park Avenue

New York, New York 10017

 

Janus Capital Management, LLC

151 Detroit Street

Denver, Colorado 80206

 

Massachusetts Financial Services Company

111 Huntington Avenue

Boston, MA 02199

 

PineBridge Investments, LLC

399 Park Avenue

New York, New York 10022

 

Boston Partners Global Investors, Inc. d/b/a Boston Partners

909 Third Avenue, 32nd Floor

New York, New York 10022

 

SunAmerica Asset Management, LLC

Haborside 5

185 Hudson Street, Suite 3300

Jersey City, New Jersey 07311

 

The Boston Company Asset Management, LLC

One Boston Place

Boston, Massachusetts 02108

 

Wellington Management Company LLP

280 Congress Street

Boston, Massachusetts 02210

 

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

PricewaterhouseCoopers LLP

1000 Louisiana Street, Suite 5800

Houston, Texas 77002

 

TRANSFER AND SHAREHOLDER SERVICE AGENT

VALIC Retirement

Services Company (VRSCO)

2929 Allen Parkway

Houston, Texas 77019

OFFICERS

John T. Genoy,

President and Principal Executive Officer

John Packs,

Vice President and Senior Investment Officer

Gregory R. Kingston,

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 C. Joe,

Chief Compliance Officer

Matthew J. Hackethal,

Anti-Money Laundering Compliance Officer

Christopher J. Tafone,

Assistant Secretary

 

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.

 

 

153


Table of Contents

VALIC.com — Account acces

Manage your account online

You will need to create an online security profile with a unique user ID and password.

With your PIN, you can also access your account via the 24-hour VALIC automated phone line at 1-800-448-2542.

 

 

Print and download account transaction confirmations and tax statements

 

 

View transaction history and download it to Quicken using Direct ConnectSM

 

 

Use the Account Aggregation feature to display information from other accounts in addition to your VALIC accounts

 

 

Easily manage your personal profile to update your contact information (phone, address, email), update your beneficiaries, reset your password, and more

With VALIC.com, you can initiate account transactions including:

 

 

Change allocation

 

 

Transfer money among investment options

 

 

Rebalance account to your desired allocation mix

 

 

Change contributions

 

 

Automate future contribution increases

Start exploring VALIC.com today!

 

 

Visit VALIC.com

 

 

Register for online access

 

 

Follow steps to create a security profile

PersonalDeliver- LOGO ®

 

 

It’s easy to sign up

 

 

Simply visit VALIC.com today to get started

Please note:

Email delivery is not accessible to certain VALIC annuity contract owners.

Sign up today at VALIC.com

We know privacy is important to you, so please be assured that your email address and other information you share with us is kept private and never sold. Review our Privacy Policy online for more information.

Easy and secure. Sign up for PersonalDeliver- LOGO ® today.

CLICK VALIC.com     CALL 1-800-448-2542      VISIT your financial advisor

Securities and investment advisory services offered through VALIC Financial Advisors, Inc. (“VFA”), member FINRA, SIPC and an SEC-registered investment advisor. VFA registered representatives offer securities and other products under retirement plans and IRAs, and to clients outside of such arrangements.

Annuities issued by The Variable Annuity Life Insurance Company (“VALIC”). Variable annuities distributed by its affiliate, AIG Capital Services, Inc. (“ACS”), member FINRA. VALIC, VFA and ACS are members of American International Group, Inc. (“AIG”).

Copyright © The Variable Annuity Life Insurance Company. All rights reserved.

VC 23800 (06/2017) J102011   EE


Table of Contents

VALIC Company II

P.O. Box 3206

Houston, TX 77253-3206

 

PRSRT STD

U.S. POSTAGE

PAID

LANCASTER, PA

PERMIT NO. 1765

VC 11387   (02/2019)   J55301


Table of Contents
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.


Table of Contents
Item 12.

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

 

Item 13.

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.


Table of Contents

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 8, 2019

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 8, 2019

 

By:   /s/ Gregory R. Kingston
  Gregory R. Kingston
  Treasurer

Date: May 8, 2019


Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘N-CSRS’ Filing    Date    Other Filings
1/1/21
12/31/19
12/15/19
Filed on / Effective on:5/8/19
For Period End:2/28/19N-MFP2
11/5/18
9/1/18
8/31/1824F-2NT,  N-CEN,  N-CSR,  N-MFP2
2/28/18N-CSRS,  N-MFP2,  NSAR-A
12/31/17N-MFP2
12/22/17
1/23/01
1/1/01
5/6/98
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