GLOBAL SOCIAL AWARENESS FUND

EQUITIES
GLOBAL SOCIAL AWARENESS FUND
Align Your Beliefs with Your Investments
What is the Global Social Awareness Fund?
Who Should Use These Funds?
■■ The
■■ Investors
Fund is a global diversified fund that seeks growth
of capital by investing in stocks that meet certain social
criteria established for the Fund.
–Align their investments with social beliefs.
–Participate in US and international equity markets.
Why Socially Responsible Investing (SRI)?
■■ Social
who want to:
FIGURE 1: SINCE INCEPTION PERFORMANCE
AS OF JUNE 30, 2013
responsibility is gaining popularity across the world.
■■ The
Social Investment Forum’s 2012 Report on Socially
Investing Trends revealed that $3.74 trillion out of the $33.3
trillion of the total assets under management in
the US, are in one or more socially responsible strategies—
that is nearly one out of every nine dollars under
management today involve SRI.
■■ Good
environmental management and good governance can
also translate to good performance. SRI companies
are earning competitive returns vs. non-SRI companies
as shown in Figure 1. With SRI funds, investors don’t need
to sacrifice performance.
%
12
8
8.16%
9.36%
3.44%
4
0
-4
May 1990 - March 2013
2.95%
October 2007 - March 2013
-8
-12
MSCI KLD
S&P 500
400 Social Index
TR
MSCI World MSCI World
ESG Index
Index
Source: MSCI.
ABOUT PORTFOLIO DIRECTOR
Annuities are long-term investments. Income taxes are payable upon withdrawal. Federal restrictions and a 10% federal early withdrawal penalty may apply to
withdrawals prior to age 59½. Investment return and principal value will fluctuate so that investment units, when redeemed, can be worth more or less than their
original cost. Bear in mind that investing involves risk, including loss of principal.
Also, annuity contracts typically include limitations, exclusions and expense charges, which are described in the current Portfolio Director prospectus. Fees apply and
are described in the current prospectus. These fees include Separate Account fees, which range from 0.35% to 1.25% depending on the contract and variable option
chosen, and Annual Net Fund Expenses, which range from 0.15% to 1.28% for the variable options.
The current Annual Net Fund Expense is the current Annual Total Fund Expense less expense waivers or reimbursements. Fees are subject to change based on waivers
and reimbursements. Additionally, account maintenance fees of $3.75 per quarter and surrender charges may apply, depending on your contract.
Retirement plans and accounts that satisfy relevant qualification rules, such as 403(b)s, IRAs, 401(k)s, etc., can be tax deferred regardless of whether or not they are
funded with an annuity. If you are considering funding a tax-qualified retirement plan or account with an annuity, you should know that an annuity does not provide any
additional tax-deferred treatment of earnings beyond the tax deferral of the tax-qualified retirement plan or account itself. However, annuities do provide other features
and benefits.
Portfolio Director® Fixed and Variable Annuity
FOR BROKER-DEALER USE ONLY
WHY CHOOSE THE GLOBAL SOCIAL AWARENESS FUND?
■■ Global
equity funds provide both diversification and exposure
for investors seeking stocks from around the world.
Global Social Awareness Fund is a simple, socially
responsible, one-fund equity solution
■■ The
portfolio team relies on enhanced research to screen
stocks that meet the fund’s social criteria from two highly
respected services:
■■ The
– E thical Investment Research Services (EIRIS), which
researches the environmental, social, governance
(ESG) and ethical performance aspects of a company’s
operation and;
■■ The
Fund is the only socially conscious fund in the Morningstar
US Insurance Fund World Stock category.1
■■ Our
portfolio managers have extensive experience
managing socially responsible investments both inside
and outside the US.
1
– Institutional Shareholder Services (ISS) which studies
and provides objective information on corporate proxy
votes and voting recommendations to institutional
investors, such as pension funds and college endowments,
throughout the world.
As of June 2013.
WORLD INVESTMENT OPPORTUNITIES
1970
34%
44%
56%
66%
2012
2010
1982
57%
43%
■
■
38%
United States
International
62%
Source: MSCI. The charts depict world stock market opportunities as defined by the market capitalization of the MSCI World Index from December 31, 1970 through December 31, 2012.
HOW IS THE FUND MANAGED?
■■ The
Fund will typically invest in stocks of large capitalization
companies domiciled in the US, Europe, Japan and other
developed markets.
FIGURE 3 COUNTRY ALLOCATIONS2
AS OF JUNE 30, 2013
■■ Our
management evaluates stocks that meet the Fund’s
social criteria, based on industry classifications and
research services such as the ISS and EIRIS.
Identifying
and Sourcing
Screening and
Analysis
Portfolio
Construction
Identify stocks
from S&P 500
and Russell
1000 universe
Eliminate stocks
that do not meet
fund’s investment
criteria.
Outcome: A globally
diversified, socially
responsible portfolio
of stocks
Netherlands Other Countries
8.2%
Ireland 1.8%
1.9%
Australia
3.2%
Germany
4.0%
Canada
4.0%
Switzerland
5.1%
United States
51.2%
France
5.3%
United Kingdom
7.1%
Japan
9.2%
2
Excludes cash.
Portfolio Director® Fixed and Variable Annuity
FOR BROKER-DEALER USE ONLY
The fund avoids companies that significantly engage
in the manufacturing or marketing of:
The fund avoids companies that have
poor records concerning:
Alcohol
Civilian Firearms
Employee Safety
Labor Relations
Tobacco
Military Weapons
Environmental
Performance
Human Rights
Gambling
Nuclear Power
PineBridge is an independent asset manager with over 60 years of experience in developedand emerging markets. We manage
more than US $68 billion across our platform for institutional and individual investors worldwide as of June 30, 2013. Our globally
integrated investment platform offers innovative, core and specialized alpha-oriented solutions across asset allocation, equities,
fixed income, private equity and hedge funds. What differentiates us is our integration of on-the-ground investment teams across
asset classes, bringing investors the combined benefits of global perspectives and structured insights.
The MSCI KLD 400 Social Index includes 400 US companies with high ESG ratings relative to their sector peers and that do not have significant business activities involving
alcohol, tobacco, firearms, gambling, nuclear power or military weapons. The S&P 500 Total Return Index includes 500 leading companies in leading industries of the U.S.
economy. Although it focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market.
The MSCI World ESG Index is a broadly diversified global index that includes large and mid capitalization companies with high ESG ratings relative to their sector peers.
The MSCI World Index is a free-float-adjusted market capitalization index that is designed to measure global developed market equity performance. As of June 2011 the
MSCI World Index consisted of the following 24 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong
Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States.
To obtain a Portfolio Director prospectus and underlying fund prospectuses, visit www.valic.com or call 1-800-428-2542 and follow the prompts. The
prospectuses contain the investment objectives, risks, charges, expenses and other information about the respective investment company that you
should consider carefully before investing. Please read the prospectuses carefully before investing or sending money. Policy Form series UIT-194,
UITG-194, UITG-194P, UIT-IRA-194 and UITN-194.
Annuities are issued by The Variable Annuity Life Insurance Company and distributed by its affiliate, SunAmerica Capital Services, Inc., 2929 Allen Parkway, Houston, Texas
77019, member FINRA.
The information contained herein is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax
advice. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of US federal,
state or local tax penalties. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.
VALIC represents The Variable Annuity Life Insurance Company and its subsidiaries, VALIC Financial Advisors, Inc. and VALIC Retirement Services Company. For more
information contact your local financial advisor or call 1-800-448-2542.
Copyright © 2013, The Variable Annuity Life Insurance Company. All rights reserved. Houston, Texas.
VC23148 (8/2013) J77351
Portfolio Director® Fixed and Variable Annuity
FOR BROKER-DEALER USE ONLY

Download Report