VALIC stands out from a cost perspective for open-end and exchange-traded funds, demonstrating a firm-wide commitment to minimizing costs and maximizing investors' returns. On average, fees for the firm's funds are in the second-lowest quintile of category peers. The firm’s lineup has demonstrated industry-average durability. Its 10-year success ratio is 58%, meaning that 58% of strategies have both survived and beaten their respective category median. A firm's success ratio indicates relative performance and provides insight into a firm’s discipline around investment strategy and product development. VALIC has undergone a bout of turnover in the past five years, as denoted by lower-than-average portfolio manager retention. Turnover in the portfolio-management ranks can happen for a number of reasons, including mergers and liquidations, portfolio managers moving into other roles, or portfolio managers leaving the firm. In some cases, such change may not signal a serious or immediate problem at the firm, but can still be disruptive for investors, hinder the effectiveness of a firm’s investment processes, or suggest a weaker investment culture.
Overall, VALIC benefits from a strong investment culture, earning it an Above Average Parent Pillar rating.
United States