VALIC Co II N-CSR Certified annual shareholder report (management investment company)

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

The Variable Annuity Life Insurance Company

2929 Allen Parkway

Houston, TX 77019

(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: August 31, 2016

Item 1. Reports to Stockholders

VALIC Company II

Annual Report, August 31, 2016

SAVING :INVESTING :PLANNING

VALIC Company II

ANNUAL REPORT AUGUST 31, 2016

TABLE OF CONTENTS

President’s Letter	1
Expense Example	2
Portfolios of Investments:
Aggressive Growth Lifestyle Fund	4
Capital Appreciation Fund	6
Conservative Growth Lifestyle Fund	9
Core Bond Fund	11
High Yield Bond Fund	33
International Opportunities Fund	45
Large Cap Value Fund	52
Mid Cap Growth Fund	56
Mid Cap Value Fund	59
Moderate Growth Lifestyle Fund	64
Money Market II Fund	66
Small Cap Growth Fund	68
Small Cap Value Fund	72
Socially Responsible Fund	80
Strategic Bond Fund	87
Statements of Assets and Liabilities	115
Statements of Operations	118
Statements of Changes in Net Assets	121
Notes to Financial Statements	125
Financial Highlights	145
Report of Independent Registered Public Accounting Firm	153
Approval of Advisory Agreements	154
Trustees and Officers Information	159
Shareholders Tax Information	161
Comparisons: Funds vs. Indexes	162
Supplements to Prospectus	181

VALIC Company II

PRESIDENT’S LETTER

Dear Valued Investor:

We are pleased to provide you with the following Annual Report for VALIC Company II. The report contains the investment portfolio information and the financial statements of VALIC Company II for the twelve-month period ended August 31, 2016. We encourage you to carefully read this report and hope you find it informative and helpful.

Domestically, the total return for the S&P 500^® Index*, widely regarded as the best single gauge of the U.S. equity market, ended up 12.55%. 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 -0.12%. The domestic bond market experienced respectable returns, with the Bloomberg Barclays U.S. Aggregate Bond Index***, a broad measure of the bond market, rising 5.97%.

Global growth continued to slow during the period which weighed heavily on international markets. Market volatility increased during the reporting period amid signs of a steeper than expected economic slowdown in China shortly after the unexpected decision by the Chinese government to devalue the Renminbi (RMB), which triggered a major market sell-off. In response, the Chinese government utilized fiscal and monetary measures in an effort to stimulate the economy. Following these measures, the Chinese economy began to show signs of stabilization towards the end of the period. Further compounding global pressures was the shadow that was cast over the Eurozone amidst the fallout and potential ramifications from the United Kingdom’s vote to leave the European Union, dubbed “Brexit” (British Exit).

Domestically, the U.S. Federal Reserve (“Fed”) began its much anticipated monetary tightening in December 2015. While Fed officials said they expect to make further adjustments with respect to monetary policy, they intend to do so gradually, watching the global economy closely. In August 2016, Fed comments from the Jackson Hole, WY, meeting continued the discussion about the need for and timing of a rate hike, citing continued “solid performance of the labor market and the outlook for economic activity and inflation.” The U.S. dollar remains strong as compared to the major international currencies, which has some Fed policy makers concerned that this strength could translate to a drag on exports.

Oil prices fell dramatically during the period, reaching lows not seen for almost seven years. Oil prices have been affected by a myriad of issues, most notable among them was the major oil producers’ refusal to curtail production (which has created a supply glut), exacerbated by a weak global economy. In August 2016, oil prices began to climb off their lows amid speculation that oil producing nations would take necessary measures amidst the supply glut.

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 to help you potentially reach your long-term financial goals. Another important step, we further believe, 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 serving your investment needs in the years ahead.

Sincerely,

John T. Genoy, President

VALIC Company II

Past performance is no guarantee of future results.

* The S&P 500^® Index is an index of the stocks of 500 major large-cap U.S. corporations, chosen for market size, liquidity, and industry group representation. It is a market-value weighted index, with each stock’s percentage in the Index in proportion to its market value.

** The 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 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. Effective August 24, 2016, the name of the Barclays U.S. Aggregate Bond Index was changed to Bloomberg Barclays U.S. Aggregate Bond Index.

Indices are not managed and an investor cannot invest directly into an index. Past performance of an index does not guarantee the future performance of any investment.

1

VALIC Company II

EXPENSE EXAMPLE — August 31, 2016 (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 March 1, 2016 and held until August 31, 2016. Shares of VC II are currently issued and redeemed only in connection with investments in and payments under variable annuity contracts and variable life insurance policies (“Variable Contracts”), qualified retirement plans (the “Plans”) and Individual Retirement Plan Accounts (“IRA”) offered by The Variable Annuity Life Insurance Company (“VALIC”), the investment adviser to VC II and other life insurance companies affiliated with VALIC. The fees and expenses associated with the Variable Contracts, Plans and IRA’s are not included in these Examples, and had such fees and expenses been included, your costs would have been higher. Please see your Variable Contract prospectus or Plan/IRA documents for more details on the fees associated with the Variable Contract, Plans or IRA’s.

Actual Expenses

The “Actual” section of the table provides information about your actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the column under the heading entitled “Expenses Paid During the Six Months Ended August 31, 2016” to estimate the expenses you paid on your account during this period. The “Expenses Paid During the Six Months Ended August 31, 2016” column and the “Annualized Expense Ratio” column do not include fees and expenses that may be charged by the Variable Contracts, Plans and IRA’s, in which the Funds are offered. Had these fees and expenses been included, the “Expenses Paid During the Six Months Ended August 31, 2016” 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 August 31, 2016” column and the “Annualized Expense Ratio” column do not include fees and expenses that may be charged by the Variable Contracts, Plans or IRA’s in which the Funds are offered. Had these fees and expenses been included, the “Expenses Paid During the Six Months Ended August 31, 2016” column would have been higher and the “Ending Account Value” column would have been lower.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees and expenses that may be charged by the Variable Contracts, Plans or IRA’s. Please refer to your Variable Contract prospectus or Plan/IRA document for more information. Therefore, the “hypothetical” example is useful in comparing ongoing costs and will not help you determine the relative total costs of owning different funds. In addition, if these fees and expenses were included, your costs would have been higher.

2

VALIC Company II

EXPENSE EXAMPLE — August 31, 2016 (unaudited) — (continued)

	Actual						Hypothetical
Fund	Beginning Account Value at March  1, 2016		Ending Account Value Using Actual Return at August 31, 2016		Expenses Paid During the Six Months Ended August 31, 2016*		Beginning Account Value at March 1, 2016		Ending Account Value Using a Hypothetical 5% Annual Return at August 31, 2016		Expenses Paid During the Six Months Ended August 31, 2016*		Annualized Expense Ratio
Aggressive Growth Lifestyle#	$	1,000.00	$	1,133.78	$	0.54	$	1,000.00	$	1,024.63	$	0.51		0.10	%
Capital Appreciation#	$	1,000.00	$	1,117.45	$	4.52	$	1,000.00	$	1,020.86	$	4.32		0.85	%
Conservative Growth Lifestyle#	$	1,000.00	$	1,094.93	$	0.53	$	1,000.00	$	1,024.63	$	0.51		0.10	%
Core Bond#	$	1,000.00	$	1,049.12	$	3.97	$	1,000.00	$	1,021.27	$	3.91		0.77	%
High Yield Bond#	$	1,000.00	$	1,115.90	$	5.11	$	1,000.00	$	1,020.31	$	4.88		0.96	%
International Opportunities#	$	1,000.00	$	1,121.38	$	5.33	$	1,000.00	$	1,020.11	$	5.08		1.00	%
Large Cap Value#	$	1,000.00	$	1,151.57	$	4.38	$	1,000.00	$	1,021.06	$	4.12		0.81	%
Mid Cap Growth#	$	1,000.00	$	1,171.03	$	4.64	$	1,000.00	$	1,020.86	$	4.32		0.85	%
Mid Cap Value#	$	1,000.00	$	1,176.55	$	5.74	$	1,000.00	$	1,019.86	$	5.33		1.05	%
Moderate Growth Lifestyle#	$	1,000.00	$	1,119.29	$	0.53	$	1,000.00	$	1,024.63	$	0.51		0.10	%
Money Market II#	$	1,000.00	$	1,000.05	$	2.06	$	1,000.00	$	1,023.08	$	2.08		0.41	%
Small Cap Growth#	$	1,000.00	$	1,270.52	$	6.62	$	1,000.00	$	1,019.30	$	5.89		1.16	%
Small Cap Value#	$	1,000.00	$	1,204.76	$	5.26	$	1,000.00	$	1,020.36	$	4.82		0.95	%
Socially Responsible#	$	1,000.00	$	1,133.85	$	3.00	$	1,000.00	$	1,022.32	$	2.85		0.56	%
Strategic Bond	$	1,000.00	$	1,092.34	$	4.63	$	1,000.00	$	1,020.71	$	4.47		0.88	%

* Expenses are equal to each Fund‘s annualized expense ratio multiplied by the average account value over the period, multiplied by 184 days then divided by 366 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 August 31, 2016” and the “Annualized Expense Ratio” would have been higher.

3

VALIC Company II Aggressive Growth Lifestyle Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Domestic Equity Investment Companies	46.9	%
Domestic Fixed Income Investment Companies	23.2
International Equity Investment Companies	19.7
Real Estate Investment Companies	10.1
International Fixed Income Investment Companies	0.1
	100.0	%

* Calculated as a percentage of net assets

4

VALIC Company II Aggressive Growth Lifestyle Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Shares		Value (Note 2)
AFFILIATED REGISTERED INVESTMENT COMPANIES#(1) — 100.0%
Domestic Equity Investment Companies — 46.9%
VALIC Co. I Blue Chip Growth Fund		959,989	$	15,321,422
VALIC Co. I Dividend Value Fund		1,422,778		17,130,245
VALIC Co. I Mid Cap Index Fund		1,014,686		26,564,486
VALIC Co. I Mid Cap Strategic Growth Fund		454,675		5,997,163
VALIC Co. I Nasdaq-100 Index Fund		1,178,005		12,357,276
VALIC Co. I Science & Technology Fund		348,130		7,961,730
VALIC Co. I Small Cap Index Fund		1,534,625		29,618,264
VALIC Co. I Small Cap Special Values Fund		1,096,229		14,152,320
VALIC Co. I Stock Index Fund		580,775		20,019,331
VALIC Co. I Value Fund		219,625		3,395,396
VALIC Co. II Capital Appreciation Fund		1,052,411		16,828,047
VALIC Co. II Large Cap Value Fund		534,897		9,847,452
VALIC Co. II Mid Cap Growth Fund		830,878		6,995,995
VALIC Co. II Mid Cap Value Fund		1,620,949		33,148,398
VALIC Co. II Small Cap Growth Fund		738,128		10,481,418
VALIC Co. II Small Cap Value Fund		1,557,958		21,141,495
Total Domestic Equity Investment Companies
(cost $232,158,408)				250,960,438
Domestic Fixed Income Investment Companies — 23.2%
VALIC Co. I Capital Conservation Fund		587,379		5,985,390
VALIC Co. I Government Securities Fund		670,444		7,401,700
VALIC Co. I Inflation Protected Fund		294,976		3,256,539
VALIC Co. II Core Bond Fund		2,800,944		31,650,665
VALIC Co. II High Yield Bond Fund		5,524,842		41,823,055
VALIC Co. II Strategic Bond Fund		2,998,097		33,848,518
Total Domestic Fixed Income Investment Companies
(cost $123,416,553)				123,965,867

Security Description		Shares			Value (Note 2)
International Equity Investment Companies — 19.7%
VALIC Co. I Emerging Economies Fund			1,433,416		$	9,933,574
VALIC Co. I Foreign Value Fund			2,859,542			26,622,335
VALIC Co. I International Equities Index Fund	��		5,307,805			33,545,328
VALIC Co. I International Growth Fund			1,490,477			17,423,681
VALIC Co. II International Opportunities Fund			1,127,731			18,032,426
Total International Equity Investment Companies
(cost $113,301,169)						105,557,344
International Fixed Income Investment Companies — 0.1%
VALIC Co. I International Government Bond Fund
(cost $520,178)			44,612			531,777
Real Estate Investment Trusts — 10.1%
VALIC Co. I Global Real Estate Fund
(cost $53,162,466)			6,440,311			54,356,225
TOTAL INVESTMENTS
(cost $522,558,774)(2)			100.0	%		535,371,651
Liabilities in excess of other assets			(0.0	)		(126,452	)
NET ASSETS			100.0	%	$	535,245,199

# The Aggressive Growth Lifestyle Fund invests in various VALIC Company I or VALIC Company II Funds, some of which are not presented in this report. Additional information on the underlying funds including such fund’s prospectuses and shareholder reports is available at our website, www.valic.com.

(1) See Note 3.

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

The following is a summary of the inputs used to value the Fund’s net assets as of August 31, 2016 (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	$	535,371,651	$	—	$	—	$	535,371,651

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

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.

See Notes to Financial Statements

5

VALIC Company II Capital Appreciation Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Web Portals/ISP	5.8	%
Medical — Drugs	4.8
Applications Software	4.7
Electronic Components — Semiconductors	4.5
Internet Content — Entertainment	4.4
E-Commerce/Products	4.2
Cable/Satellite TV	3.6
Medical — Biomedical/Gene	3.6
Medical — HMO	3.3
Finance — Credit Card	3.1
Enterprise Software/Service	2.9
Medical Instruments	2.8
Instruments — Controls	2.6
Beverages — Non-alcoholic	2.6
Retail — Building Products	2.6
Transport — Rail	2.5
Food — Misc./Diversified	2.3
Retail — Discount	2.0
Retail — Major Department Stores	1.9
E-Commerce/Services	1.9
Finance — Other Services	1.8
Aerospace/Defense	1.7
Brewery	1.6
Computer Services	1.6
Networking Products	1.5
Investment Management/Advisor Services	1.5
Retail — Perfume & Cosmetics	1.5
Data Processing/Management	1.5
Cosmetics & Toiletries	1.5
Apparel Manufacturers	1.5
Diagnostic Equipment	1.5
Chemicals — Diversified	1.3
Aerospace/Defense — Equipment	1.3
Television	1.3
Coatings/Paint	1.2
Insurance — Property/Casualty	1.2
Dental Supplies & Equipment	1.1
Medical — Wholesale Drug Distribution	1.1
Finance — Consumer Loans	1.1
Oil — Field Services	1.0
Building Products — Cement	1.0
Auto/Truck Parts & Equipment — Original	0.9
Auto — Cars/Light Trucks	0.8
Oil Companies — Exploration & Production	0.8
Electronic Measurement Instruments	0.8
Advertising Agencies	0.7
Time Deposits	0.6
Internet Application Software	0.5
Registered Investment Companies	0.5
	100.5	%

* Calculated as a percentage of net assets

6

VALIC Company II Capital Appreciation Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Shares		Value (Note 2)
COMMON STOCKS — 99.4%
Advertising Agencies — 0.7%
Interpublic Group of Cos., Inc.		24,664	$	570,725
Aerospace/Defense — 1.7%
Raytheon Co.		10,447		1,463,938
Aerospace/Defense - Equipment — 1.3%
United Technologies Corp.		10,206		1,086,225
Apparel Manufacturers — 1.5%
Hanesbrands, Inc.		47,583		1,262,853
Applications Software — 4.7%
Citrix Systems, Inc.†		14,186		1,237,019
Intuit, Inc.		11,131		1,240,550
Salesforce.com, Inc.†		18,822		1,494,843
				3,972,412
Auto - Cars/Light Trucks — 0.8%
Tesla Motors, Inc.†#		3,280		695,393
Auto/Truck Parts & Equipment - Original — 0.9%
Delphi Automotive PLC		10,974		775,423
Beverages - Non-alcoholic — 2.6%
Coca-Cola Co.		51,008		2,215,277
Brewery — 1.6%
Molson Coors Brewing Co., Class B		13,633		1,394,929
Building Products - Cement — 1.0%
Vulcan Materials Co.		7,212		821,230
Cable/Satellite TV — 3.6%
Charter Communications, Inc. Class A†		4,457		1,146,385
Comcast Corp., Class A		29,262		1,909,638
				3,056,023
Chemicals - Diversified — 1.3%
Dow Chemical Co.		21,231		1,138,831
Coatings/Paint — 1.2%
Sherwin-Williams Co.		3,588		1,017,952
Computer Services — 1.6%
Cognizant Technology Solutions Corp., Class A†		15,920		914,445
Teradata Corp.†		14,583		462,718
				1,377,163
Cosmetics & Toiletries — 1.5%
Estee Lauder Cos., Inc., Class A		14,188		1,265,995
Data Processing/Management — 1.5%
Paychex, Inc.		20,910		1,268,610
Dental Supplies & Equipment — 1.1%
DENTSPLY SIRONA, Inc.		15,827		972,727
Diagnostic Equipment — 1.5%
Danaher Corp.		15,421		1,255,424
E-Commerce/Products — 4.2%
Amazon.com, Inc.†		4,596		3,535,059
E-Commerce/Services — 1.9%
Priceline Group, Inc.†		1,125		1,593,821
Electronic Components - Semiconductors — 4.5%
Broadcom, Ltd.		10,781		1,901,984
Texas Instruments, Inc.		27,470		1,910,264
				3,812,248
Electronic Measurement Instruments — 0.8%
Fortive Corp.		12,639		665,696

Security Description	Shares		Value (Note 2)
Enterprise Software/Service — 2.9%
Oracle Corp.		47,554	$	1,960,176
Workday, Inc., Class A†		5,744		487,034
				2,447,210
Finance - Consumer Loans — 1.1%
Synchrony Financial		33,402		929,578
Finance - Credit Card — 3.1%
Visa, Inc., Class A		32,466		2,626,499
Finance - Other Services — 1.8%
Intercontinental Exchange, Inc.		5,263		1,484,271
Food - Misc./Diversified — 2.3%
ConAgra Foods, Inc.		20,011		932,713
Kellogg Co.		12,445		1,023,103
				1,955,816
Instruments - Controls — 2.6%
Honeywell International, Inc.		18,990		2,216,323
Insurance - Property/Casualty — 1.2%
Progressive Corp.		30,637		997,541
Internet Application Software — 0.5%
Splunk, Inc.†		7,789		453,631
Internet Content - Entertainment — 4.4%
Facebook, Inc., Class A†		29,708		3,746,773
Investment Management/Advisor Services — 1.5%
BlackRock, Inc.		3,472		1,294,396
Medical Instruments — 2.8%
Boston Scientific Corp.†		45,488		1,083,524
Medtronic PLC		15,048		1,309,628
				2,393,152
Medical - Biomedical/Gene — 3.6%
BioMarin Pharmaceutical, Inc.†		10,044		943,031
Celgene Corp.†		9,144		976,031
Vertex Pharmaceuticals, Inc.†		11,990		1,133,175
				3,052,237
Medical - Drugs — 4.8%
AbbVie, Inc.		29,800		1,910,180
Allergan PLC†		3,522		826,050
Eli Lilly & Co.		17,386		1,351,761
				4,087,991
Medical - HMO — 3.3%
Centene Corp.†		16,431		1,122,073
UnitedHealth Group, Inc.		12,560		1,708,788
				2,830,861
Medical - Wholesale Drug Distribution — 1.1%
Cardinal Health, Inc.		11,952		952,216
Networking Products — 1.5%
Cisco Systems, Inc.		41,691		1,310,765
Oil Companies - Exploration & Production — 0.8%
Pioneer Natural Resources Co.		3,880		694,714
Oil - Field Services — 1.0%
Schlumberger, Ltd.		6,060		478,740
Superior Energy Services, Inc.		23,316		392,408
				871,148
Retail - Building Products — 2.6%
Home Depot, Inc.		16,332		2,190,448

7

VALIC Company II Capital Appreciation Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Retail - Discount — 2.0%
Costco Wholesale Corp.		10,253	$	1,661,909
Retail - Major Department Stores — 1.9%
TJX Cos., Inc.		21,000		1,626,240
Retail - Perfume & Cosmetics — 1.5%
Ulta Salon Cosmetics & Fragrance, Inc.†		5,191		1,283,267
Television — 1.3%
CBS Corp., Class B		20,925		1,067,803
Transport - Rail — 2.5%
Union Pacific Corp.		22,182		2,119,046
Web Portals/ISP — 5.8%
Alphabet, Inc., Class A†		2,652		2,094,682
Alphabet, Inc., Class C†		3,692		2,831,949
				4,926,631
Total Long-Term Investment Securities
(cost $68,809,936)				84,438,420

Security Description	Shares/ Principal Amount			Value (Note 2)
SHORT-TERM INVESTMENT SECURITIES — 1.1%
Registered Investment Companies — 0.5%
State Street Navigator Securities Lending Prime Portfolio 0.43%(1)(2)		392,881		$	392,881
Time Deposits — 0.6%
Euro Time Deposit with State Street Bank and Trust Co. 0.01% due 09/01/2016	$	498,000			498,000
Total Short-Term Investment Securities
(cost $890,881)					890,881
TOTAL INVESTMENTS
(cost $69,700,817)(3)		100.5	%		85,329,301
Liabilities in excess of other assets		(0.5	)		(383,639	)
NET ASSETS		100.0	%	$	84,945,662

† Non-income producing security

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

(1) At August 31, 2016, the Fund had loaned securities with a total value of $386,070. This was secured by collateral of $392,881, which was received in cash and subsequently invested in short-term investments currently valued at $392,881 as reported in the Portfolio of Investments.

(2) The rate shown is the 7-day yield as of August 31, 2016.

(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 August 31, 2016 (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	$	84,438,420	$	—	$	—	$	84,438,420
Short-Term Investment Securities:
Registered Investment Companies		392,881		—		—		392,881
Time Deposits		—		498,000		—		498,000
Total Investments at Value	$	84,831,301	$	498,000	$	—	$	85,329,301

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

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.

See Notes to Financial Statements

8

VALIC Company II Conservative Growth Lifestyle Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Domestic Fixed Income Investment Companies	65.8	%
Domestic Equity Investment Companies	15.5
International Equity Investment Companies	12.7
Real Estate Investment Companies	5.9
International Fixed Income Investment Companies	0.1
	100.0	%

* Calculated as a percentage of net assets

9

VALIC Company II Conservative Growth Lifestyle Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Shares		Value (Note 2)
AFFILIATED REGISTERED INVESTMENT COMPANIES#(1) — 100.0%
Domestic Equity Investment Companies — 15.5%
VALIC Co. I Blue Chip Growth Fund		145,794	$	2,326,865
VALIC Co. I Dividend Value Fund		590,475		7,109,322
VALIC Co. I Mid Cap Index Fund		91,162		2,386,633
VALIC Co. I Mid Cap Strategic Growth Fund		50,942		671,931
VALIC Co. I Nasdaq-100 Index Fund		64,822		679,983
VALIC Co. I Science & Technology Fund		30,139		689,268
VALIC Co. I Small Cap Index Fund		283,716		5,475,724
VALIC Co. I Small Cap Special Values Fund		443,949		5,731,386
VALIC Co. I Stock Index Fund		59,387		2,047,065
VALIC Co. I Value Fund		55,046		851,011
VALIC Co. II Capital Appreciation Fund		222,675		3,560,571
VALIC Co. II Large Cap Value Fund		184,803		3,402,227
VALIC Co. II Mid Cap Growth Fund		79,022		665,361
VALIC Co. II Mid Cap Value Fund		380,404		7,779,257
VALIC Co. II Small Cap Growth Fund		38,228		542,833
VALIC Co. II Small Cap Value Fund		520,695		7,065,831
Total Domestic Equity Investment Companies
(cost $47,716,157)				50,985,268
Domestic Fixed Income Investment Companies — 65.8%
VALIC Co. I Capital Conservation Fund		1,320,993		13,460,918
VALIC Co. I Government Securities Fund		1,037,390		11,452,787
VALIC Co. I Inflation Protected Fund		903,825		9,978,232
VALIC Co. II Core Bond Fund		5,873,358		66,368,944
VALIC Co. II High Yield Bond Fund		6,055,486		45,840,032
VALIC Co. II Strategic Bond Fund		6,116,949		69,060,359
Total Domestic Fixed Income Investment Companies
(cost $215,876,551)				216,161,272

Security Description	Shares			Value (Note 2)
International Equity Investment Companies — 12.7%
VALIC Co. I Emerging Economies Fund		222,336		$	1,540,790
VALIC Co. I Foreign Value Fund		1,209,431			11,259,806
VALIC Co. I International Equities Index Fund		2,395,939			15,142,320
VALIC Co. I International Growth Fund		542,139			6,337,605
VALIC Co. II International Opportunities Fund		453,191			7,246,530
Total International Equity Investment Companies
(cost $44,619,037)					41,527,051
International Fixed Income Investment Companies — 0.1%
VALIC Co. I International Government Bond Fund
(cost $322,326)		27,657			329,674
Real Estate Investment Companies — 5.9%
VALIC Co. I Global Real Estate Fund
(cost $19,400,116)		2,303,377			19,440,502
TOTAL INVESTMENTS
(cost $327,934,187)(2)		100.0	%		328,443,767
Liabilities in excess of other assets		(0.0	)		(54,135	)
NET ASSETS		100.0	%	$	328,389,632

# 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 August 31, 2016 (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	$	328,443,767	$	—	$	—	$	328,443,767

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

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.

See Notes to Financial Statements

10

VALIC Company II Core Bond Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Federal National Mtg. Assoc.	19.1	%
Federal Home Loan Mtg. Corp.	15.3
United States Treasury Notes	11.5
United States Treasury Bonds	7.0
Time Deposits	6.2
Diversified Banking Institutions	3.8
Diversified Financial Services	2.7
Banks — Commercial	2.6
Government National Mtg. Assoc.	2.5
Electric — Integrated	1.6
Telephone — Integrated	1.4
Pipelines	1.3
Registered Investment Companies	1.3
Auto — Cars/Light Trucks	1.3
Oil Companies — Exploration & Production	1.1
Cable/Satellite TV	1.0
Oil Companies — Integrated	0.9
Paper & Related Products	0.8
Insurance — Life/Health	0.8
Computers	0.8
Savings & Loans/Thrifts	0.7
Brewery	0.7
Insurance — Multi-line	0.7
Diversified Manufacturing Operations	0.6
Sovereign	0.6
Medical — Drugs	0.6
Medical Labs & Testing Services	0.5
Electric — Generation	0.5
Finance — Other Services	0.5
Banks — Super Regional	0.4
Cellular Telecom	0.4
Aerospace/Defense	0.4
Real Estate Investment Trusts	0.4
Networking Products	0.4
Aerospace/Defense — Equipment	0.4
Retail — Drug Store	0.4
Applications Software	0.4
Medical — Hospitals	0.3
Enterprise Software/Service	0.3
Machinery — Farming	0.3
Medical — HMO	0.3
Electric — Distribution	0.3
Insurance — Mutual	0.3
Satellite Telecom	0.3
Steel — Producers	0.2
Computer Services	0.2
Pharmacy Services	0.2
Finance — Auto Loans	0.2
Finance — Credit Card	0.2
Finance — Leasing Companies	0.2
Beverages — Wine/Spirits	0.2
Finance — Consumer Loans	0.2
Chemicals — Diversified	0.2
Containers — Paper/Plastic	0.2
Retail — Discount	0.2
Medical — Generic Drugs	0.2
Oil Refining & Marketing	0.2
Auto — Heavy Duty Trucks	0.2
Casino Hotels	0.2
Multimedia	0.2
Building Products — Wood	0.2
Printing — Commercial	0.2
Food — Misc./Diversified	0.2
Beverages — Non-alcoholic	0.2
Tools — Hand Held	0.2
Building — Residential/Commercial	0.2

Electronic Components — Semiconductors	0.1
Coatings/Paint	0.1
Telecom Services	0.1
Advertising Agencies	0.1
Airlines	0.1
Banks — Fiduciary	0.1
Containers — Metal/Glass	0.1
Chemicals — Plastics	0.1
Consumer Products — Misc.	0.1
Independent Power Producers	0.1
Retail — Restaurants	0.1
Steel Pipe & Tube	0.1
Transport — Rail	0.1
Electronic Measurement Instruments	0.1
Oil — Field Services	0.1
Coal	0.1
Medical Products	0.1
Internet Connectivity Services	0.1
Municipal Bonds & Notes	0.1
Gambling (Non-Hotel)	0.1
Rental Auto/Equipment	0.1
Data Processing/Management	0.1
Wire & Cable Products	0.1
Home Decoration Products	0.1
SupraNational Banks	0.1
Real Estate Management/Services	0.1
Machinery — General Industrial	0.1
Financial Guarantee Insurance	0.1
Telecommunication Equipment	0.1
Chemicals — Specialty	0.1
Insurance — Reinsurance	0.1
Real Estate Operations & Development	0.1
Food — Dairy Products	0.1
Computers — Integrated Systems	0.1
Broadcast Services/Program	0.1
Food — Retail	0.1
Power Converter/Supply Equipment	0.1
Internet Content — Entertainment	0.1
Publishing — Periodicals	0.1
Finance — Mortgage Loan/Banker	0.1
Metal — Copper	0.1
Finance — Investment Banker/Broker	0.1
Energy — Alternate Sources	0.1
Publishing — Newspapers	0.1
Transport — Services	0.1
Cruise Lines	0.1
Metal — Aluminum	0.1
Marine Services	0.1
Travel Services	0.1
Retail — Appliances	0.1
Agricultural Operations	0.1
Appliances	0.1
Building & Construction Products — Misc.	0.1
Electronic Components — Misc.	0.1
Computer Software	0.1
Diversified Minerals	0.1
Rubber/Plastic Products	0.1
Hotels/Motels	0.1
Retail — Computer Equipment	0.1
Metal Processors & Fabrication	0.1
Footwear & Related Apparel	0.1
Gas — Distribution	0.1
Food — Meat Products	0.1
Batteries/Battery Systems	0.1
Agricultural Chemicals	0.1
	104.6	%

* Calculated as a percentage of net assets

11

VALIC Company II Core Bond Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited) — (continued)

Credit Quality†#

Aaa	59.3	%
Aa	2.7
A	10.8
Baa	14.0
Ba	4.7
B	4.7
Caa	1.7
Not Rated@	2.1
	100.0	%

† 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.

12

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Principal Amount		Value (Note 2)
ASSET BACKED SECURITIES — 2.5%
Diversified Financial Services — 2.5%
American Express Credit Account Master Trust FRS Series 2014-1, Class A 0.88% due 12/15/2021	$	760,000	$	762,263
AmeriCredit Automobile Receivables Trust Series 2013-3, Class D 3.00% due 07/08/2019		525,000		532,838
Asset Backed Securities Corp. Home Equity Loan Trust FRS Series 2004-HE7, Class M2 2.06% due 10/25/2034		923,526		872,555
BA Credit Card Trust Series 2015-A2,Class A 1.36% due 09/15/2020		1,217,000		1,220,125
Capital One Multi-Asset Execution Trust Series 2016-A4, Class A4 1.33% due 06/15/2022		725,000		724,825
CGGS Commercial Mtg. Trust Series 2016-RNDA, Class AFX 2.76% due 02/10/2033*(1)		2,800,000		2,842,746
Chase Issuance Trust FRS Series 2014-A5, Class A5 0.89% due 04/15/2021		446,000		446,802
Chase Issuance Trust Series 2016-A2, Class A 1.37% due 06/15/2021		420,000		420,336
Chase Mtg. Trust VRS Series 2016-2, Class M2 3.75% due 12/25/2045*(3)		492,864		508,834
Citigroup Commercial Mtg. Trust Series 2014-GC19, Class A2 2.79% due 03/10/2047(1)		1,478,000		1,508,934
Citigroup Commercial Mtg. Trust Series 2014-GC23, Class A2 2.85% due 07/10/2047(1)		1,460,000		1,502,192
Commercial Mtg. Trust Series 2015-DC1, Class A2 2.87% due 02/10/2048(1)		1,778,000		1,836,346
Commercial Mtg. Trust Series 2015-CR24, Class A2 3.02% due 08/10/2048(1)		145,390		152,241
Commercial Mtg. Trust VRS Series 2016-787S, Class A 3.55% due 02/10/2036*(1)		1,786,000		1,946,939
Commercial Mtg. Trust VRS Series 2016-787S, Class B 3.96% due 02/10/2036*(1)		754,000		831,043
Core Industrial Trust Series 2015-CALW, Class A 3.04% due 02/10/2034*(1)		6,000		6,325
CSAIL Commercial Mtg. Trust Series 2015-C1, Class A2 2.97% due 04/15/2050(1)		86,800		90,375
CSMC Trust Series 2015-GLPA, Class A 3.88% due 11/15/2037*(1)		1,500,000		1,671,233
Discover Card Execution Note Trust Series 2015-A4, Class A4 2.19% due 04/17/2023		1,556,000		1,599,007
Ford Credit Auto Owner Trust Series 2014-C,Class B 1.97% due 04/15/2020		1,001,000		1,008,381
GS Mtg. Securities Corp. II Series GC30, Class A2 2.73% due 05/10/2050(1)		162,750		167,611
GS Mtg. Securities Trust Series 2015-GC28, Class A2 2.90% due 02/10/2048(1)		61,000		62,943

Security Description	Principal Amount		Value (Note 2)
Diversified Financial Services (continued)
GS Mtg. Securities Trust Series 2013-GC14, Class A2 3.00% due 08/10/2046(1)	$	3,200,000	$	3,261,063
Honda Auto Receivables Owner Trust Series 2016-2, Class A4 1.62% due 08/15/2022		512,000		515,266
LB-UBS Commercial Mtg. Trust Series 2007-C1, Class A4 5.42% due 02/15/2040(1)		416,693		419,262
Morgan Stanley Bank of America Merrill Lynch Trust Series 2015-C23, Class A2 2.98% due 07/15/2050(1)		1,000,000		1,044,856
NRP Mtg. Trust VRS Series 2013-1, Class A1 3.25% due 07/25/2043*(3)		1,838,212		1,843,845
Santander Drive Auto Receivables Trust Series 2014-5, Class C 2.46% due 06/15/2020		620,000		623,182
Synchrony Credit Card Master Note Trust Series 2016-1, Class A 2.04% due 03/15/2022		350,000		354,689
Synchrony Credit Card Master Note Trust Series 2016-2, Class A 2.21% due 05/15/2024		277,000		282,174
Taco Bell Funding LLC Series 2016-1A, Class A2I 3.83% due 05/25/2046*		524,000		531,148
Taco Bell Funding LLC Series 2016-1A, Class A2II 4.38% due 05/25/2046*		524,000		538,218
Wells Fargo Mtg. Backed Securities Trust FRS Series 2004-X, Class 1A3 2.79% due 11/25/2034(3)		321,899		321,659
Total Asset Backed Securities
(cost $30,027,619)				30,450,256
U.S. CORPORATE BONDS & NOTES — 30.7%
Advertising Agencies — 0.1%
Interpublic Group of Cos., Inc. Senior Notes 4.20% due 04/15/2024		611,000		661,469
Omnicom Group, Inc. Company Guar. Notes 3.60% due 04/15/2026		942,000		1,003,493
				1,664,962
Aerospace/Defense — 0.4%
BAE Systems Holdings, Inc. Company Guar. Notes 3.80% due 10/07/2024*		1,143,000		1,209,100
BAE Systems Holdings, Inc. Company Guar. Notes 4.75% due 10/07/2044*		532,000		595,869
Boeing Co. Senior Notes 0.95% due 05/15/2018		1,547,000		1,545,126
Boeing Co. Senior Notes 2.20% due 10/30/2022		857,000		876,403
General Dynamics Corp. Company Guar. Notes 2.13% due 08/15/2026		786,000		776,821
				5,003,319

13

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Aerospace/Defense-Equipment — 0.4%
Harris Corp. Senior Notes 4.85% due 04/27/2035	$	1,054,000	$	1,178,995
Harris Corp. Senior Notes 5.05% due 04/27/2045		1,000,000		1,168,822
Moog, Inc. Company Guar. Notes 5.25% due 12/01/2022*		609,000		627,270
Orbital ATK, Inc. Company Guar. Notes 5.50% due 10/01/2023		710,000		747,275
Spirit AeroSystems, Inc. Company Guar. Notes 3.85% due 06/15/2026		166,000		172,451
Triumph Group, Inc. Company Guar. Notes 5.25% due 06/01/2022		470,000		450,025
				4,344,838
Agricultural Operations — 0.1%
Archer-Daniels-Midland Co. Senior Notes 2.50% due 08/11/2026		718,000		723,058
Airlines — 0.1%
Allegiant Travel Co. Company Guar. Notes 5.50% due 07/15/2019		693,000		722,452
Atlas Air, Inc. Pass-Through Certs. Series 1999-1, Class B 7.63% due 01/02/2018(4)		45,115		45,277
United Airlines Pass-Through Trust Pass-Through Certs. Series 2014-2, Class B 4.63% due 03/03/2024		874,871		883,620
				1,651,349
Appliances — 0.1%
Whirlpool Corp. Senior Notes 4.50% due 06/01/2046		634,000		695,099
Applications Software — 0.4%
Microsoft Corp. Senior Notes 1.30% due 11/03/2018		936,000		941,803
Microsoft Corp. Senior Notes 2.40% due 08/08/2026		1,069,000		1,074,669
Microsoft Corp. Senior Notes 3.45% due 08/08/2036		1,114,000		1,145,287
Microsoft Corp. Senior Notes 3.70% due 08/08/2046		1,107,000		1,150,241
				4,312,000
Auto - Cars/Light Trucks — 1.3%
American Honda Finance Corp. Senior Notes 1.20% due 07/14/2017		1,451,000		1,454,021
American Honda Finance Corp. Senior Notes 1.20% due 07/12/2019		1,383,000		1,380,075
BMW US Capital LLC Company Guar. Notes 1.50% due 04/11/2019*		1,015,000		1,019,945

Security Description	Principal Amount		Value (Note 2)
Auto - Cars/Light Trucks (continued)
Daimler Finance North America LLC Company Guar. Notes 1.38% due 08/01/2017*	$	1,461,000	$	1,464,175
Daimler Finance North America LLC Company Guar. Notes 2.00% due 07/06/2021*		911,000		915,491
Daimler Finance North America LLC Company Guar. Notes 2.45% due 05/18/2020*		1,839,000		1,888,464
Daimler Finance North America LLC Company Guar. Notes 2.63% due 09/15/2016*		587,000		587,275
Ford Motor Credit Co. LLC Senior Notes 1.50% due 01/17/2017		698,000		699,046
Ford Motor Credit Co. LLC Senior Notes 2.02% due 05/03/2019		1,314,000		1,321,424
Ford Motor Credit Co. LLC Senior Notes 3.10% due 05/04/2023		1,309,000		1,324,921
Hyundai Capital America Senior Notes 2.40% due 10/30/2018*		2,238,000		2,271,234
Toyota Motor Credit Corp. Senior Notes 2.00% due 10/24/2018		738,000		749,959
				15,076,030
Auto - Heavy Duty Trucks — 0.2%
JB Poindexter & Co., Inc. Senior Notes 9.00% due 04/01/2022*		318,000		341,850
PACCAR Financial Corp. Senior Notes 1.65% due 02/25/2019		324,000		327,117
PACCAR Financial Corp. Senior Notes 2.20% due 09/15/2019		1,620,000		1,656,936
				2,325,903
Banks - Commercial — 1.2%
BankUnited, Inc. Senior Notes 4.88% due 11/17/2025		2,256,000		2,346,522
Citizens Bank NA Senior Notes 2.55% due 05/13/2021		514,000		523,462
Discover Bank Senior Notes 3.45% due 07/27/2026		757,000		761,721
Fifth Third Bank Senior Notes 2.30% due 03/15/2019		450,000		458,244
Fifth Third Bank Senior Notes 2.88% due 10/01/2021		1,423,000		1,486,967
First Horizon National Corp. Senior Notes 3.50% due 12/15/2020		3,712,000		3,784,406
First Tennessee Bank NA Senior Notes 2.95% due 12/01/2019		979,000		982,607
Regions Financial Corp. Senior Notes 3.20% due 02/08/2021		1,098,000		1,139,131

14

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Banks - Commercial (continued)
Regions Financial Corp. Sub. Notes 7.38% due 12/10/2037	$	1,907,000	$	2,478,408
				13,961,468
Banks - Fiduciary — 0.1%
Citizens Financial Group, Inc. Sub. Notes 4.15% due 09/28/2022*		1,570,000		1,624,341
Banks - Super Regional — 0.3%
Capital One Financial Corp. Sub. Notes 3.75% due 07/28/2026		536,000		538,558
Wells Fargo & Co. Sub. Notes 4.10% due 06/03/2026		1,033,000		1,122,309
Wells Fargo & Co. Sub. Notes 4.30% due 07/22/2027		1,775,000		1,961,210
Wells Fargo & Co. Sub. Notes 4.40% due 06/14/2046		133,000		141,989
Wells Fargo & Co. Sub. Notes 4.90% due 11/17/2045		194,000		221,580
				3,985,646
Batteries/Battery Systems — 0.1%
EnerSys Company Guar. Notes 5.00% due 04/30/2023*		605,000		603,488
Brewery — 0.7%
Anheuser-Busch InBev Finance, Inc. Company Guar. Notes 1.90% due 02/01/2019		753,000		760,772
Anheuser-Busch InBev Finance, Inc. Company Guar. Notes 2.65% due 02/01/2021		1,408,000		1,451,961
Anheuser-Busch InBev Finance, Inc. Company Guar. Notes 3.30% due 02/01/2023		617,000		647,925
Anheuser-Busch InBev Finance, Inc. Company Guar. Notes 4.70% due 02/01/2036		1,027,000		1,191,789
Anheuser-Busch InBev Finance, Inc. Company Guar. Notes 4.90% due 02/01/2046		447,000		542,177
Anheuser-Busch InBev Worldwide, Inc. Company Guar. Notes 1.38% due 07/15/2017		2,222,000		2,226,831
Molson Coors Brewing Co. Company Guar. Notes 3.00% due 07/15/2026		379,000		383,833
Molson Coors Brewing Co. Company Guar. Notes 4.20% due 07/15/2046		600,000		633,811
				7,839,099
Broadcast Services/Program — 0.1%
Clear Channel Worldwide Holdings, Inc. Company Guar. Notes Series A 6.50% due 11/15/2022		911,000		921,249

Security Description	Principal Amount		Value (Note 2)
Building & Construction Products - Misc. — 0.1%
Standard Industries, Inc. Senior Notes 6.00% due 10/15/2025*	$	610,000	$	668,712
Building & Construction - Misc. — 0.0%
Weekley Homes LLC/Weekley Finance Corp. Senior Notes 6.00% due 02/01/2023		650,000		598,000
Building Products - Doors & Windows — 0.0%
Griffon Corp. Company Guar. Notes 5.25% due 03/01/2022		539,000		541,695
Building Products - Wood — 0.2%
Boise Cascade Co. Company Guar. Notes 5.63% due 09/01/2024*		600,000		612,000
Masco Corp. Senior Notes 4.45% due 04/01/2025		1,336,000		1,426,180
				2,038,180
Building - Residential/Commercial — 0.1%
K. Hovnanian Enterprises, Inc. Senior Sec. Notes 7.25% due 10/15/2020*		794,000		710,630
Meritage Homes Corp. Company Guar. Notes 7.00% due 04/01/2022		500,000		557,500
				1,268,130
Cable/Satellite TV — 0.7%
Block Communications, Inc. Senior Notes 7.25% due 02/01/2020*		533,000		548,990
Cable One, Inc. Company Guar. Notes 5.75% due 06/15/2022*		877,000		923,042
CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.75% due 02/15/2026*		590,000		631,300
CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.88% due 04/01/2024*		390,000		420,225
Charter Communications Operating LLC/Charter Communications Operating Capital Senior Sec. Notes 3.58% due 07/23/2020*		692,000		724,128
Charter Communications Operating LLC/Charter Communications Operating Capital Senior Sec. Notes 6.38% due 10/23/2035*		599,000		716,226
Charter Communications Operating LLC/Charter Communications Operating Capital Senior Sec. Notes 6.48% due 10/23/2045*		398,000		489,120
Comcast Corp. Company Guar. Notes 2.35% due 01/15/2027		693,000		686,867
Comcast Corp. Company Guar. Notes 3.20% due 07/15/2036		720,000		718,708
Comcast Corp. Company Guar. Notes 3.40% due 07/15/2046		720,000		706,967

15

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Cable/Satellite TV — (continued)
CSC Holdings LLC Company Guar. Notes 6.63% due 10/15/2025*	$	545,000	$	592,006
DISH DBS Corp. Company Guar. Notes 7.75% due 07/01/2026*		834,000		889,870
				8,047,449
Casino Hotels — 0.2%
Caesars Entertainment Resort Properties LLC Senior Sec. Notes 8.00% due 10/01/2020		582,000		590,730
Caesars Entertainment Resort Properties LLC Sec. Notes 11.00% due 10/01/2021#		383,000		394,969
Downstream Development Authority of the Quapaw Tribe of Oklahoma Senior Sec. Notes 10.50% due 07/01/2019*		656,000		674,040
Golden Nugget Escrow, Inc. Senior Notes 8.50% due 12/01/2021*		568,000		593,560
				2,253,299
Cellular Telecom — 0.4%
Sprint Communications, Inc. Senior Notes 7.00% due 08/15/2020		495,000		487,575
Sprint Communications, Inc. Company Guar. Notes 9.00% due 11/15/2018*		545,000		600,181
Sprint Corp. Company Guar. Notes 7.25% due 09/15/2021		3,095,000		3,060,181
T-Mobile USA, Inc. Company Guar. Notes 6.54% due 04/28/2020		1,164,000		1,201,830
				5,349,767
Chemicals - Diversified — 0.2%
Westlake Chemical Corp. Company Guar. Notes 3.60% due 08/15/2026*		874,000		874,228
Westlake Chemical Corp. Company Guar. Notes 5.00% due 08/15/2046*		1,174,000		1,204,947
				2,079,175
Chemicals - Plastics — 0.0%
A. Schulman, Inc. Company Guar. Notes 6.88% due 06/01/2023*#		554,000		556,770
Chemicals - Specialty — 0.1%
Lubrizol Corp. Company Guar. Notes 6.50% due 10/01/2034		550,000		750,719
Unifrax I LLC/Unifrax Holding Co. Company Guar. Notes 7.50% due 02/15/2019*		253,000		227,700
				978,419
Coal — 0.1%
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp. Company Guar. Notes 7.38% due 02/01/2020		1,334,000		1,223,945

Security Description	Principal Amount		Value (Note 2)
Coatings/Paint — 0.1%
RPM International, Inc. Senior Notes 5.25% due 06/01/2045	$	1,691,000	$	1,804,339
Commercial Services - Finance — 0.0%
Automatic Data Processing, Inc. Senior Notes 2.25% due 09/15/2020		547,000		565,839
Computer Services — 0.2%
Harland Clarke Holdings Corp. Senior Sec. Notes 6.88% due 03/01/2020*		600,000		577,500
Harland Clarke Holdings Corp. Senior Notes 9.25% due 03/01/2021*		652,000		557,460
Hewlett Packard Enterprise Co. Senior Bonds 4.90% due 10/15/2025*		554,000		592,202
Hewlett Packard Enterprise Co. Senior Bonds 6.20% due 10/15/2035*		1,017,000		1,067,261
				2,794,423
Computer Software — 0.1%
Rackspace Hosting, Inc. Company Guar. Notes 6.50% due 01/15/2024*		630,000		661,563
Computers — 0.8%
Apple, Inc. Senior Notes 2.45% due 08/04/2026		815,000		817,170
Apple, Inc. Senior Notes 2.85% due 05/06/2021		1,080,000		1,139,928
Apple, Inc. Senior Notes 2.85% due 02/23/2023		1,130,000		1,187,239
Apple, Inc. Senior Notes 3.85% due 08/04/2046		595,000		620,927
Apple, Inc. Senior Notes 4.50% due 02/23/2036		461,000		532,722
Diamond 1 Finance Corp./Diamond 2 Finance Corp. Senior Sec. Notes 6.02% due 06/15/2026*		1,483,000		1,586,700
Diamond 1 Finance Corp./Diamond 2 Finance Corp. Company Guar. Notes 7.13% due 06/15/2024*		780,000		845,017
Diamond 1 Finance Corp./Diamond 2 Finance Corp. Senior Sec. Notes 8.10% due 07/15/2036*		1,240,000		1,440,441
Diamond 1 Finance Corp./Diamond 2 Finance Corp. Senior Sec. Notes 8.35% due 07/15/2046*		825,000		961,423
				9,131,567
Computers - Integrated Systems — 0.1%
Diebold, Inc. Company Guar. Notes 8.50% due 04/15/2024*		919,000		935,082
Computers - Memory Devices — 0.0%
Western Digital Corp. Company Guar. Notes 10.50% due 04/01/2024*		518,000		585,340

16

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Consumer Products - Misc. — 0.0%
Kimberly-Clark Corp. Senior Notes 1.85% due 03/01/2020	$	367,000	$	373,632
Containers - Metal/Glass — 0.1%
Crown Cork & Seal Co., Inc. Company Guar. Notes 7.38% due 12/15/2026		483,000		543,375
Owens-Brockway Glass Container, Inc. Company Guar. Notes 5.38% due 01/15/2025*		700,000		733,250
				1,276,625
Containers - Paper/Plastic — 0.2%
Amcor Finance USA, Inc. Company Guar. Notes 3.63% due 04/28/2026*		1,287,000		1,331,398
Brambles USA, Inc. Company Guar. Notes 4.13% due 10/23/2025*		446,000		481,326
Multi-Color Corp. Company Guar. Notes 6.13% due 12/01/2022*		650,000		678,437
				2,491,161
Cosmetics & Toiletries — 0.0%
Estee Lauder Cos., Inc. Senior Notes 4.38% due 06/15/2045		326,000		381,363
Data Processing/Management — 0.1%
Fidelity National Information Services, Inc. Senior Notes 4.50% due 08/15/2046		541,000		551,843
Fidelity National Information Services, Inc. Company Guar. Notes 5.00% due 10/15/2025		453,000		519,950
				1,071,793
Diagnostic Equipment — 0.0%
Danaher Corp. Senior Notes 4.38% due 09/15/2045		430,000		521,260
Distribution/Wholesale — 0.0%
WW Grainger, Inc. Senior Notes 3.75% due 05/15/2046		504,000		533,577
Diversified Banking Institutions — 3.0%
Bank of America Corp. Senior Notes 2.60% due 01/15/2019		1,286,000		1,314,823
Bank of America Corp. Senior Notes 2.63% due 10/19/2020		655,000		670,734
Bank of America Corp. Sub. Notes 3.95% due 04/21/2025		543,000		565,596
Bank of America Corp. Sub. Notes 4.25% due 10/22/2026		2,167,000		2,297,174
Bank of America Corp. Sub. Notes 6.11% due 01/29/2037		1,681,000		2,092,248
Bank of America Corp. Sub. Notes 7.25% due 10/15/2025		75,000		91,342

Security Description	Principal Amount		Value (Note 2)
Diversified Banking Institutions (continued)
Citigroup, Inc. Sub. Notes 3.88% due 03/26/2025	$	183,000	$	188,898
Citigroup, Inc. Sub. Notes 4.40% due 06/10/2025		2,229,000		2,364,273
Citigroup, Inc. Sub. Notes 4.45% due 09/29/2027		2,866,000		3,023,412
Citigroup, Inc. Sub. Notes 6.00% due 10/31/2033		622,000		745,032
Goldman Sachs Group, Inc. Senior Notes 3.63% due 01/22/2023		1,286,000		1,363,874
Goldman Sachs Group, Inc. Sub. Notes 4.25% due 10/21/2025		693,000		735,692
Goldman Sachs Group, Inc. Senior Notes 4.75% due 10/21/2045		395,000		451,998
Goldman Sachs Group, Inc. Sub. Notes 5.15% due 05/22/2045		851,000		936,912
Goldman Sachs Group, Inc. Senior Notes 6.13% due 02/15/2033		1,627,000		2,048,779
Goldman Sachs Group, Inc. Sub. Notes 6.75% due 10/01/2037		1,174,000		1,497,267
JPMorgan Chase & Co. Senior Notes 2.20% due 10/22/2019		1,856,000		1,888,298
JPMorgan Chase & Co. Senior Notes 2.30% due 08/15/2021		745,000		749,533
JPMorgan Chase & Co. Senior Notes 2.55% due 03/01/2021		1,250,000		1,276,894
JPMorgan Chase & Co. Senior Notes 2.70% due 05/18/2023		1,632,000		1,658,473
JPMorgan Chase & Co. Sub. Notes 4.13% due 12/15/2026		1,240,000		1,330,980
JPMorgan Chase & Co. Sub. Notes 4.95% due 06/01/2045		80,000		92,567
Morgan Stanley Senior Notes 2.80% due 06/16/2020		663,000		682,077
Morgan Stanley Senior Notes 3.13% due 07/27/2026		591,000		597,908
Morgan Stanley Sub. Notes 4.10% due 05/22/2023		2,854,000		3,027,960
Morgan Stanley Senior Notes 4.75% due 03/22/2017		662,000		674,506
Morgan Stanley Sub. Notes 5.00% due 11/24/2025		3,098,000		3,464,840
				35,832,090

17

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Diversified Financial Services — 0.1%
USAA Capital Corp. Senior Notes 2.13% due 06/03/2019*	$	1,623,000	$	1,654,212
Diversified Manufacturing Operations — 0.6%
General Electric Capital Corp. Senior Notes 5.88% due 01/14/2038		324,000		443,402
General Electric Co. Senior Notes 2.70% due 10/09/2022		2,432,000		2,541,732
Ingersoll-Rand Global Holding Co., Ltd. Company Guar. Notes 5.75% due 06/15/2043		1,266,000		1,583,589
Textron, Inc. Senior Notes 4.00% due 03/15/2026		1,001,000		1,057,492
Textron, Inc. Senior Notes 4.63% due 09/21/2016		1,120,000		1,121,720
Trinity Industries, Inc. Company Guar. Notes 4.55% due 10/01/2024		777,000		770,860
				7,518,795
Electric Products - Misc. — 0.0%
WESCO Distribution, Inc. Company Guar. Notes 5.38% due 06/15/2024*		316,000		323,110
Electric - Distribution — 0.2%
Entergy Louisiana LLC 1st. Mtg. Bonds 4.95% due 01/15/2045		1,911,000		2,023,223
Electric - Integrated — 1.5%
AES Corp. Senior Notes 4.88% due 05/15/2023		530,000		536,625
AES Corp. Senior Notes 5.50% due 03/15/2024		1,144,000		1,186,900
Arizona Public Service Co. Senior Notes 2.20% due 01/15/2020		579,000		588,175
Black Hills Corp. Senior Notes 3.15% due 01/15/2027#		519,000		525,193
Dominion Resources, Inc. Jr. Sub. Notes 2.96% due 07/01/2019		412,000		423,210
Dominion Resources, Inc. Senior Notes 5.25% due 08/01/2033		1,459,000		1,673,663
Duke Energy Corp. Senior Notes 3.75% due 09/01/2046		783,000		790,854
Duke Energy Progress LLC 1st. Mtg. Bonds 2.80% due 05/15/2022		1,018,000		1,065,892
Entergy Arkansas, Inc. 1st. Mtg. Bonds 4.95% due 12/15/2044		854,000		903,266
Exelon Generation Co. LLC Senior Notes 2.95% due 01/15/2020		785,000		807,617

Security Description	Principal Amount		Value (Note 2)
Electric - Integrated (continued)
FirstEnergy Corp. Senior Notes 7.38% due 11/15/2031	$	866,000	$	1,131,096
Louisville Gas & Electric Co. 1st. Mtg. Bonds 4.38% due 10/01/2045		127,000		147,821
Massachusetts Electric Co. Notes 4.00% due 08/15/2046*		2,264,000		2,366,484
Mirant Mid Atlantic LLC Pass Through Trust Pass-Through Certs. Class C 10.06% due 12/30/2028		705,389		546,677
South Carolina Electric & Gas Co. 1st. Mtg. Bonds 5.10% due 06/01/2065		606,000		721,694
Southern California Edison Co. 1st. Mtg. Notes 1.13% due 05/01/2017		1,496,000		1,497,695
Southern Co. Senior Notes 1.30% due 08/15/2017		1,198,000		1,199,187
Talen Energy Supply LLC Senior Notes 4.63% due 07/15/2019*		725,000		681,500
Trans-Allegheny Interstate Line Co. Senior Notes 3.85% due 06/01/2025*		610,000		650,273
				17,443,822
Electronic Components - Misc. — 0.1%
Corning, Inc. Senior Notes 1.50% due 05/08/2018		667,000		666,016
Electronic Components - Semiconductors — 0.1%
Amkor Technology, Inc. Senior Notes 6.38% due 10/01/2022		364,000		377,420
Intel Corp. Senior Notes 1.35% due 12/15/2017		1,180,000		1,185,289
				1,562,709
Electronic Measurement Instruments — 0.1%
FLIR Systems, Inc. Senior Notes 3.13% due 06/15/2021		596,000		615,627
Fortive Corp. Company Guar. Notes 4.30% due 06/15/2046*		573,000		638,567
				1,254,194
Electronic Parts Distribution — 0.0%
Avnet, Inc. Senior Notes 4.63% due 04/15/2026		528,000		548,890
Energy - Alternate Sources — 0.1%
TerraForm Power Operating LLC Company Guar. Notes 5.88% due 02/01/2023*		820,000		826,150
Enterprise Software/Service — 0.3%
Oracle Corp. Senior Notes 1.90% due 09/15/2021		1,381,000		1,385,623

18

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Enterprise Software/Service (continued)
Oracle Corp. Senior Notes 2.65% due 07/15/2026	$	1,041,000	$	1,050,568
Oracle Corp. Senior Notes 3.85% due 07/15/2036		1,082,000		1,140,997
Oracle Corp. Senior Notes 3.90% due 05/15/2035		309,000		325,879
				3,903,067
Finance - Auto Loans — 0.2%
Ally Financial, Inc. Sub. Notes 5.75% due 11/20/2025		1,549,000		1,647,749
Credit Acceptance Corp. Company Guar. Notes 7.38% due 03/15/2023		1,045,000		1,065,900
				2,713,649
Finance - Commercial — 0.0%
Jefferies Finance LLC/JFIN Co-Issuer Corp. Senior Notes 6.88% due 04/15/2022*		223,000		202,373
Jefferies Finance LLC/JFIN Co-Issuer Corp. Senior Notes 7.38% due 04/01/2020*		220,000		210,100
				412,473
Finance - Consumer Loans — 0.2%
Enova International, Inc. Company Guar. Notes 9.75% due 06/01/2021		1,441,000		1,211,160
Navient Corp. Senior Notes 5.63% due 08/01/2033		1,183,000		970,060
OneMain Financial Holdings LLC Company Guar. Notes 6.75% due 12/15/2019*		349,000		366,450
				2,547,670
Finance - Credit Card — 0.2%
American Express Credit Corp. Senior Notes 2.25% due 05/05/2021		1,373,000		1,397,117
Discover Financial Services Senior Notes 3.75% due 03/04/2025		1,237,000		1,255,691
				2,652,808
Finance - Investment Banker/Broker — 0.1%
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
TD Ameritrade Holding Corp. Senior Notes 2.95% due 04/01/2022		794,000		827,330
				827,371
Finance - Leasing Companies — 0.1%
International Lease Finance Corp. Senior Notes 5.88% due 08/15/2022		795,000		897,356

Security Description	Principal Amount		Value (Note 2)
Finance - Mortgage Loan/Banker — 0.1%
Quicken Loans, Inc. Company Guar. Notes 5.75% due 05/01/2025*	$	850,000	$	848,130
Finance - Other Services — 0.4%
National Rural Utilities Cooperative Finance Corp. Senior Notes 0.95% due 04/24/2017		588,000		587,841
National Rural Utilities Cooperative Finance Corp. Collateral Trust Bonds 1.10% due 01/27/2017		2,319,000		2,320,111
National Rural Utilities Cooperative Finance Corp. Collateral Trust Bonds 2.00% due 01/27/2020		1,116,000		1,131,506
National Rural Utilities Cooperative Finance Corp. Collateral Trust Bonds 2.30% due 11/01/2020		531,000		544,514
				4,583,972
Firearms & Ammunition — 0.0%
FGI Operating Co. LLC/FGI Finance, Inc. Sec. Notes 7.88% due 05/01/2020		451,000		375,458
Food - Meat Products — 0.1%
JBS USA LLC/JBS USA Finance, Inc. Senior Notes 5.88% due 07/15/2024*		586,000		605,045
Food - Misc./Diversified — 0.2%
Kraft Heinz Foods Co. Company Guar. Notes 4.38% due 06/01/2046		372,000		402,408
Kraft Heinz Foods Co. Sec. Notes 4.88% due 02/15/2025*		1,441,000		1,588,394
				1,990,802
Food - Retail — 0.1%
Albertsons Cos. LLC/Safeway, Inc. Senior Notes 5.75% due 03/15/2025*		465,000		481,275
Albertsons Cos. LLC/Safeway, Inc. Senior Notes 6.63% due 06/15/2024*		402,000		431,587
				912,862
Food - Wholesale/Distribution — 0.0%
C&S Group Enterprises LLC Senior Sec. Notes 5.38% due 07/15/2022*		261,000		254,475
Footwear & Related Apparel — 0.1%
Wolverine World Wide, Inc. Company Guar. Notes 5.00% due 09/01/2026*		610,000		610,763
Gambling (Non-Hotel) — 0.1%
Scientific Games International, Inc. Company Guar. Notes 10.00% due 12/01/2022		1,280,000		1,184,000
Waterford Gaming LLC/Waterford Gaming Financial Corp. Escrow Notes 8.63% due 09/15/2014†*(4)(5)		5,223		62
				1,184,062

19

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Gas - Distribution — 0.1%
Dominion Gas Holdings LLC Senior Notes 4.80% due 11/01/2043	$	546,000	$	607,687
Hazardous Waste Disposal — 0.0%
Clean Harbors, Inc. Company Guar. Notes 5.13% due 06/01/2021		534,000		548,685
Home Decoration Products — 0.1%
Newell Rubbermaid, Inc. Senior Notes 4.20% due 04/01/2026		539,000		588,870
Newell Rubbermaid, Inc. Senior Notes 5.38% due 04/01/2036		394,000		470,567
				1,059,437
Home Furnishings — 0.0%
Tempur Sealy International, Inc. Company Guar. Notes 5.50% due 06/15/2026*		431,000		450,180
Hotels/Motels — 0.1%
Interval Acquisition Corp. Company Guar. Notes 5.63% due 04/15/2023		600,000		621,000
Independent Power Producers — 0.1%
Dynegy, Inc. Company Guar. Notes 7.38% due 11/01/2022		755,000		745,563
NRG Energy, Inc. Company Guar. Notes 6.25% due 07/15/2022		701,000		715,896
				1,461,459
Industrial Gases — 0.0%
Airgas, Inc. Company Guar. Notes 3.05% due 08/01/2020		372,000		385,867
Insurance - Life/Health — 0.7%
Jackson National Life Global Funding Sec. Notes 3.05% due 04/29/2026*		1,719,000		1,749,273
Pacific LifeCorp Senior Notes 6.00% due 02/10/2020*		582,000		646,473
Pricoa Global Funding I Senior Sec. Notes 1.35% due 08/18/2017*		1,429,000		1,430,845
Pricoa Global Funding I Senior Sec. Notes 1.60% due 05/29/2018*		2,643,000		2,655,110
Principal Financial Group, Inc. Company Guar. Notes 1.85% due 11/15/2017		380,000		382,271
Principal Life Global Funding II Senior Sec. Notes 3.00% due 04/18/2026*		472,000		483,102
Unum Group Senior Notes 5.75% due 08/15/2042		418,000		478,472
				7,825,546

Security Description	Principal Amount		Value (Note 2)
Insurance - Multi-line — 0.3%
Assurant, Inc. Senior Notes 6.75% due 02/15/2034	$	2,294,000	$	2,921,553
MetLife, Inc. Senior Notes 4.60% due 05/13/2046		592,000		644,091
Old Republic International Corp. Senior Notes 3.88% due 08/26/2026		350,000		352,698
				3,918,342
Insurance - Mutual — 0.3%
Massachusetts Mutual Life Insurance Co. Sub. Notes 4.50% due 04/15/2065*		740,000		751,325
MassMutual Global Funding II Senior Sec. Notes 2.10% due 08/02/2018*		1,626,000		1,651,348
MassMutual Global Funding II Senior Sec. Notes 2.50% due 10/17/2022*		483,000		487,909
New York Life Global Funding Sec. Notes 2.10% due 01/02/2019*		605,000		615,318
				3,505,900
Insurance - Reinsurance — 0.1%
Berkshire Hathaway, Inc. Senior Notes 1.15% due 08/15/2018		976,000		976,761
Internet Connectivity Services — 0.1%
Cogent Communications Group, Inc. Senior Sec. Notes 5.38% due 03/01/2022*		600,000		618,000
Zayo Group LLC/Zayo Capital, Inc. Company Guar. Notes 6.38% due 05/15/2025		565,000		596,194
				1,214,194
Internet Content - Entertainment — 0.1%
Netflix, Inc. Senior Notes 5.88% due 02/15/2025		836,000		907,060
Investment Management/Advisor Services — 0.0%
Drawbridge Special Opportunities Fund LP/Drawbridge Special Opportunities Finance Senior Notes 5.00% due 08/01/2021*		343,000		326,708
Machinery - Farming — 0.3%
John Deere Capital Corp. Senior Notes 1.13% due 06/12/2017		1,728,000		1,729,780
John Deere Capital Corp. Senior Notes 1.55% due 12/15/2017		2,075,000		2,088,568
				3,818,348
Marine Services — 0.1%
Great Lakes Dredge & Dock Corp. Company Guar. Notes 7.38% due 02/01/2019		764,000		753,495

20

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Medical Labs & Testing Services — 0.5%
Laboratory Corp. of America Holdings Senior Notes 3.20% due 02/01/2022	$	312,000	$	324,220
Laboratory Corp. of America Holdings Senior Notes 3.60% due 02/01/2025		995,000		1,045,143
Laboratory Corp. of America Holdings Senior Notes 4.70% due 02/01/2045		514,000		565,143
Quest Diagnostics, Inc. Senior Notes 3.45% due 06/01/2026		726,000		754,659
Roche Holdings, Inc. Company Guar. Notes 1.35% due 09/29/2017*		2,037,000		2,045,118
Roche Holdings, Inc. Company Guar. Notes 2.25% due 09/30/2019*		1,595,000		1,639,406
				6,373,689
Medical Products — 0.1%
Baxter International, Inc. Senior Notes 2.60% due 08/15/2026		751,000		743,573
Becton Dickinson and Co. Senior Notes 3.13% due 11/08/2021		451,000		475,624
				1,219,197
Medical - Biomedical/Gene — 0.0%
Amgen, Inc. Senior Notes 4.40% due 05/01/2045		494,000		531,028
Medical - Drugs — 0.2%
Baxalta, Inc. Company Guar. Notes 3.60% due 06/23/2022		950,000		978,655
Endo Finance LLC/Endo Finco, Inc. Company Guar. Notes 7.25% due 01/15/2022*		490,000		475,300
Forest Laboratories LLC Company Guar. Notes 4.88% due 02/15/2021*		1,139,000		1,265,294
				2,719,249
Medical - HMO — 0.3%
Centene Corp. Senior Notes 5.63% due 02/15/2021		103,000		109,566
Centene Corp. Senior Notes 6.13% due 02/15/2024		413,000		450,170
Opal Acquisition, Inc. Senior Notes 8.88% due 12/15/2021*		665,000		558,600
UnitedHealth Group, Inc. Senior Notes 1.40% due 12/15/2017		944,000		948,000
UnitedHealth Group, Inc. Senior Notes 2.13% due 03/15/2021		971,000		989,681
UnitedHealth Group, Inc. Senior Notes 3.35% due 07/15/2022		663,000		714,175
				3,770,192

Security Description	Principal Amount		Value (Note 2)
Medical - Hospitals — 0.3%
CHS/Community Health Systems, Inc. Company Guar. Notes 6.88% due 02/01/2022	$	500,000	$	415,000
HCA, Inc. Senior Sec. Notes 5.25% due 06/15/2026		513,000		548,269
HCA, Inc. Company Guar. Notes 5.38% due 02/01/2025		95,000		97,850
HCA, Inc. Company Guar. Notes 7.50% due 11/15/2095		700,000		707,000
IASIS Healthcare LLC/IASIS Capital Corp. Company Guar. Notes 8.38% due 05/15/2019		1,033,000		936,156
RegionalCare Hospital Partners Holdings, Inc. Senior Sec. Notes 8.25% due 05/01/2023*		830,000		845,562
Tenet Healthcare Corp. Senior Sec. Notes 4.75% due 06/01/2020		600,000		615,000
				4,164,837
Metal Processors & Fabrication — 0.1%
Novelis Corp. Company Guar. Notes 6.25% due 08/15/2024*		589,000		614,033
Metal - Aluminum — 0.1%
Aleris International, Inc. Senior Sec. Notes 9.50% due 04/01/2021*		404,000		443,390
Kaiser Aluminum Corp. Company Guar. Notes 5.88% due 05/15/2024*		293,000		310,580
				753,970
Multimedia — 0.2%
Time Warner, Inc. Company Guar. Notes 4.85% due 07/15/2045		614,000		704,664
Walt Disney Co. Senior Notes 1.50% due 09/17/2018		920,000		928,249
Walt Disney Co. Senior Notes 1.65% due 01/08/2019		500,000		506,342
				2,139,255
Networking Products — 0.4%
Cisco Systems, Inc. Senior Notes 1.40% due 02/28/2018		1,262,000		1,268,528
Cisco Systems, Inc. Senior Notes 2.13% due 03/01/2019		1,222,000		1,250,234
Cisco Systems, Inc. Senior Notes 2.20% due 02/28/2021		2,079,000		2,135,358
				4,654,120
Oil Companies - Exploration & Production — 1.0%
Anadarko Petroleum Corp. Senior Notes 6.45% due 09/15/2036		2,749,000		3,173,457

21

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Oil Companies - Exploration & Production (continued)
Carrizo Oil & Gas, Inc. Company Guar. Notes 6.25% due 04/15/2023#	$	500,000	$	493,750
Denbury Resources, Inc. Company Guar. Notes 5.50% due 05/01/2022		488,000		334,280
Denbury Resources, Inc. Sec. Notes 9.00% due 05/15/2021*		1,150,000		1,181,625
Hess Corp. Senior Notes 5.60% due 02/15/2041		461,000		469,799
Hess Corp. Senior Notes 7.88% due 10/01/2029		461,000		560,662
Hilcorp Energy I LP/Hilcorp Finance Co. Senior Notes 5.00% due 12/01/2024*#		436,000		422,920
Hilcorp Energy I LP/Hilcorp Finance Co. Senior Notes 5.75% due 10/01/2025*		35,000		34,300
Laredo Petroleum, Inc. Company Guar. Notes 7.38% due 05/01/2022#		654,000		660,540
Newfield Exploration Co. Senior Notes 5.38% due 01/01/2026		509,000		511,545
Noble Energy, Inc. Senior Notes 3.90% due 11/15/2024		1,042,000		1,064,380
Noble Energy, Inc. Senior Notes 5.05% due 11/15/2044		905,000		903,338
Occidental Petroleum Corp. Senior Notes 4.40% due 04/15/2046		731,000		811,551
Rex Energy Corp. Sec. Notes 8.00% due 10/01/2020(6)		523,900		209,560
Sanchez Energy Corp. Company Guar. Notes 6.13% due 01/15/2023		644,000		508,760
SM Energy Co. Senior Notes 5.63% due 06/01/2025#		281,000		262,735
SM Energy Co. Senior Notes 6.50% due 01/01/2023		182,000		178,360
WPX Energy, Inc. Senior Notes 7.50% due 08/01/2020		625,000		641,797
				12,423,359
Oil Companies - Integrated — 0.3%
Chevron Corp. Senior Notes 1.37% due 03/02/2018		1,193,000		1,196,633
Chevron Corp. Senior Notes 1.96% due 03/03/2020		686,000		698,008
Chevron Corp. Senior Notes 2.36% due 12/05/2022		1,200,000		1,229,694

Security Description	Principal Amount		Value (Note 2)
Oil Companies - Integrated (continued)
Exxon Mobil Corp. Senior Notes 1.31% due 03/06/2018	$	649,000	$	650,963
				3,775,298
Oil Field Machinery & Equipment — 0.0%
Forum Energy Technologies, Inc. Company Guar. Notes 6.25% due 10/01/2021		410,000		388,475
Oil Refining & Marketing — 0.2%
Calumet Specialty Products Partner LP/Calumet Finance Corp. Company Guar. Notes 6.50% due 04/15/2021		1,021,000		847,430
Cheniere Corpus Christi Holdings LLC Senior Sec. Notes 7.00% due 06/30/2024*		231,000		247,170
Murphy Oil USA, Inc. Company Guar. Notes 6.00% due 08/15/2023		535,000		566,832
PBF Holding Co LLC/PBF Finance Corp. Senior Sec. Notes 7.00% due 11/15/2023*		710,000		674,855
				2,336,287
Oil - Field Services — 0.1%
Bristow Group, Inc. Company Guar. Notes 6.25% due 10/15/2022		825,000		596,062
SESI LLC Company Guar. Notes 7.13% due 12/15/2021		675,000		658,125
				1,254,187
Paper & Related Products — 0.8%
Clearwater Paper Corp. Company Guar. Notes 4.50% due 02/01/2023		525,000		523,031
Domtar Corp. Company Guar. Notes 6.75% due 02/15/2044		1,265,000		1,433,254
Georgia-Pacific LLC Senior Notes 3.60% due 03/01/2025*		2,262,000		2,427,633
Georgia-Pacific LLC Senior Notes 3.73% due 07/15/2023*		2,930,000		3,150,565
Georgia-Pacific LLC Company Guar. Notes 5.40% due 11/01/2020*		737,000		833,692
International Paper Co. Senior Notes 4.40% due 08/15/2047		1,284,000		1,304,748
PH Glatfelter Co. Company Guar. Notes 5.38% due 10/15/2020		430,000		432,150
				10,105,073
Pharmacy Services — 0.2%
Express Scripts Holding Co. Company Guar. Notes 3.00% due 07/15/2023		510,000		518,442
Express Scripts Holding Co. Company Guar. Notes 4.50% due 02/25/2026		906,000		1,001,299

22

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Pharmacy Services (continued)
Express Scripts Holding Co. Company Guar. Notes 4.80% due 07/15/2046	$	1,139,000	$	1,208,414
				2,728,155
Pipelines — 1.3%
Colorado Interstate Gas Co. LLC /Colorado Interstate Issuing Corp. Company Guar. Notes 4.15% due 08/15/2026*		770,000		767,722
Columbia Pipeline Group, Inc. Company Guar. Notes 2.45% due 06/01/2018		245,000		246,232
Energy Transfer Partners LP Senior Notes 4.90% due 03/15/2035		677,000		652,595
Energy Transfer Partners LP Senior Notes 6.05% due 06/01/2041		416,000		429,522
Energy Transfer Partners LP Senior Notes 6.63% due 10/15/2036		1,894,000		2,050,806
EnLink Midstream Partners LP Senior Notes 4.85% due 07/15/2026		910,000		907,876
Enterprise Products Operating LLC Company Guar. Notes 3.95% due 02/15/2027		578,000		608,381
Enterprise Products Operating LLC Company Guar. Notes 4.85% due 03/15/2044		358,000		379,161
Genesis Energy LP/Genesis Energy Finance Corp. Company Guar. Notes 5.63% due 06/15/2024		314,000		302,225
Genesis Energy LP/Genesis Energy Finance Corp. Company Guar. Notes 5.75% due 02/15/2021		250,000		248,125
Genesis Energy LP/Genesis Energy Finance Corp. Company Guar. Notes 6.00% due 05/15/2023		500,000		497,500
Holly Energy Partners LP/Holly Energy Finance Corp. Company Guar. Notes 6.00% due 08/01/2024*		672,000		685,440
Kinder Morgan Energy Partners LP Company Guar. Notes 3.45% due 02/15/2023		787,000		779,629
Kinder Morgan Energy Partners LP Company Guar. Notes 4.70% due 11/01/2042		479,000		442,642
Kinder Morgan Energy Partners LP Company Guar. Notes 5.63% due 09/01/2041		346,000		353,802
Kinder Morgan, Inc. Company Guar. Notes 5.00% due 02/15/2021*		647,000		700,542
Plains All American Pipeline LP/PAA Finance Corp. Senior Notes 3.60% due 11/01/2024		432,000		419,408
Plains All American Pipeline LP/PAA Finance Corp. Senior Notes 3.85% due 10/15/2023		518,000		515,798
Rose Rock Midstream LP/Rose Rock Finance Corp. Company Guar. Notes 5.63% due 07/15/2022		487,000		448,040

Security Description	Principal Amount		Value (Note 2)
Pipelines (continued)
Sabine Pass Liquefaction LLC Senior Sec. Notes 5.63% due 04/15/2023	$	225,000	$	236,813
Sabine Pass Liquefaction LLC Senior Sec. Notes 5.88% due 06/30/2026*		240,000		256,800
Sabine Pass Liquefaction LLC Senior Sec. Notes 6.25% due 03/15/2022		642,000		686,940
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. Company Guar. Notes 5.50% due 08/15/2022		540,000		509,625
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. Company Guar. Notes 5.50% due 09/15/2024*		605,000		620,125
Tesoro Logistics LP/Tesoro Logistics Finance Corp. Company Guar. Notes 5.88% due 10/01/2020		1,079,000		1,110,021
Western Gas Partners LP Senior Notes 4.65% due 07/01/2026		966,000		998,704
				15,854,474
Power Converter/Supply Equipment — 0.1%
Hubbell, Inc. Senior Notes 3.35% due 03/01/2026		864,000		910,492
Printing - Commercial — 0.1%
Quad/Graphics, Inc. Company Guar. Notes 7.00% due 05/01/2022		679,000		660,327
RR Donnelley & Sons Co. Senior Notes 7.00% due 02/15/2022		580,000		604,288
				1,264,615
Publishing - Newspapers — 0.1%
Lee Enterprises, Inc. Senior Sec. Notes 9.50% due 03/15/2022*#		548,000		567,180
McClatchy Co. Senior Sec. Notes 9.00% due 12/15/2022#		255,000		258,825
				826,005
Publishing - Periodicals — 0.1%
Emerald Expositions Holdings, Inc. Senior Notes 9.00% due 06/15/2021*		868,000		896,210
Radio — 0.0%
Sirius XM Radio, Inc. Company Guar. Notes 5.38% due 04/15/2025*		238,000		249,305
Sirius XM Radio, Inc. Company Guar. Notes 5.38% due 07/15/2026*		341,000		350,804
				600,109
Real Estate Investment Trusts — 0.4%
American Tower Corp. Senior Notes 3.38% due 10/15/2026		736,000		755,021

23

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Real Estate Investment Trusts (continued)
Columbia Property Trust Operating Partnership LP Company Guar. Notes 3.65% due 08/15/2026	$	365,000	$	366,752
CTR Partnership LP/CareTrust Capital Corp. Company Guar. Notes 5.88% due 06/01/2021		497,000		506,940
CubeSmart LP Company Guar. Notes 3.13% due 09/01/2026		715,000		714,333
DuPont Fabros Technology LP Company Guar. Notes 5.63% due 06/15/2023		458,000		479,755
ESH Hospitality, Inc. Company Guar. Notes 5.25% due 05/01/2025*		595,000		594,815
Essex Portfolio LP Company Guar. Notes 3.38% due 04/15/2026		352,000		363,522
Federal Realty Investment Trust Senior Notes 3.63% due 08/01/2046		144,000		144,384
iStar Financial, Inc. Senior Notes 5.00% due 07/01/2019		500,000		500,625
Kimco Realty Corp. Senior Notes 2.80% due 10/01/2026		377,000		375,696
				4,801,843
Real Estate Management/Services — 0.1%
Kennedy-Wilson, Inc. Company Guar. Notes 5.88% due 04/01/2024		1,000,000		1,010,000
Real Estate Operations & Development — 0.1%
Greystar Real Estate Partners LLC Senior Sec. Notes 8.25% due 12/01/2022*		896,000		949,760
Rental Auto/Equipment — 0.1%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. Company Guar. Notes 5.13% due 06/01/2022*		131,000		133,292
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. Company Guar. Notes 5.25% due 03/15/2025*#		427,000		422,730
Herc Rentals, Inc. Sec. Notes 7.50% due 06/01/2022*		577,000		600,080
				1,156,102
Retail - Appliances — 0.1%
Conn’s, Inc. Company Guar. Notes 7.25% due 07/15/2022#		940,000		723,800
Retail - Auto Parts — 0.0%
O’Reilly Automotive, Inc. Company Guar. Notes 3.55% due 03/15/2026#		302,000		322,095
Retail - Building Products — 0.0%
Home Depot, Inc. Senior Notes 2.00% due 04/01/2021		88,000		89,849

Security Description	Principal Amount		Value (Note 2)
Retail - Computer Equipment — 0.1%
GameStop Corp. Company Guar. Notes 5.50% due 10/01/2019*#	$	609,000	$	620,419
Retail - Discount — 0.2%
Costco Wholesale Corp. Senior Notes 2.25% due 02/15/2022		1,308,000		1,344,029
Dollar General Corp. Senior Notes 3.25% due 04/15/2023		1,019,000		1,052,993
				2,397,022
Retail - Drug Store — 0.4%
CVS Health Corp. Senior Notes 2.88% due 06/01/2026		1,095,000		1,122,698
CVS Pass-Through Trust Pass-Through Certs. 4.70% due 01/10/2036*		580,453		641,630
CVS Pass-Through Trust Pass-Through Certs. 5.77% due 01/10/2033*		297,487		349,388
CVS Pass-Through Trust Pass-Through Certs. 5.93% due 01/10/2034*		515,901		613,442
Walgreens Boots Alliance, Inc. Senior Notes 3.45% due 06/01/2026		1,520,000		1,582,401
Walgreens Boots Alliance, Inc. Senior Notes 4.65% due 06/01/2046		11,000		12,148
				4,321,707
Retail - Restaurants — 0.1%
Landry’s, Inc. Company Guar. Notes 9.38% due 05/01/2020*		511,000		537,827
McDonald’s Corp. Senior Notes 4.70% due 12/09/2035		182,000		208,809
McDonald’s Corp. Senior Notes 4.88% due 12/09/2045		30,000		35,492
PF Chang’s China Bistro, Inc. Company Guar. Notes 10.25% due 06/30/2020*		632,000		601,980
				1,384,108
Rubber/Plastic Products — 0.1%
Gates Global LLC/Gates Global Co. Company Guar. Notes 6.00% due 07/15/2022*		675,000		641,250
Satellite Telecom — 0.1%
Hughes Satellite Systems Corp. Company Guar. Notes 7.63% due 06/15/2021		840,000		896,700
Savings & Loans/Thrifts — 0.7%
Astoria Financial Corp. Senior Notes 5.00% due 06/19/2017		1,600,000		1,630,016
First Niagara Financial Group, Inc. Senior Notes 6.75% due 03/19/2020		3,777,000		4,313,062

24

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Savings & Loans/Thrifts (continued)
First Niagara Financial Group, Inc. Sub. Notes 7.25% due 12/15/2021	$	2,210,000	$	2,705,135
				8,648,213
Steel Pipe & Tube — 0.1%
Valmont Industries, Inc. Company Guar. Notes 5.25% due 10/01/2054		1,394,000		1,328,120
Steel - Producers — 0.1%
AK Steel Corp. Senior Sec. Notes 7.50% due 07/15/2023#		650,000		705,250
Steel Dynamics, Inc. Company Guar. Notes 5.13% due 10/01/2021		377,000		392,080
United States Steel Corp. Senior Sec. Notes 8.38% due 07/01/2021*		440,000		478,500
				1,575,830
Telecom Services — 0.0%
Embarq Corp. Senior Notes 8.00% due 06/01/2036		570,000		591,019
Telecommunication Equipment — 0.1%
Plantronics, Inc. Company Guar. Notes 5.50% due 05/31/2023*		945,000		982,800
Telephone - Integrated — 1.3%
AT&T, Inc. Senior Notes 3.00% due 06/30/2022		2,285,000		2,356,171
AT&T, Inc. Senior Notes 4.35% due 06/15/2045		1,230,000		1,240,031
AT&T, Inc. Senior Notes 4.50% due 05/15/2035		1,587,000		1,680,446
AT&T, Inc. Senior Notes 4.75% due 05/15/2046		1,003,000		1,072,005
AT&T, Inc. Senior Notes 5.80% due 02/15/2019		572,000		629,980
CenturyLink, Inc. Senior Notes 5.63% due 04/01/2025#		63,000		61,425
CenturyLink, Inc. Senior Notes 6.88% due 01/15/2028		241,000		232,601
CenturyLink, Inc. Senior Notes 7.50% due 04/01/2024#		460,000		498,812
Frontier Communications Corp. Senior Notes 10.50% due 09/15/2022		409,000		445,043
Frontier Communications Corp. Senior Notes 11.00% due 09/15/2025		1,107,000		1,195,560
Verizon Communications, Inc. Senior Notes 3.00% due 11/01/2021		1,181,000		1,239,757

Security Description	Principal Amount		Value (Note 2)
Telephone - Integrated (continued)
Verizon Communications, Inc. Senior Notes 4.40% due 11/01/2034	$	489,000	$	520,001
Verizon Communications, Inc. Senior Notes 4.67% due 03/15/2055		2,947,000		3,064,777
Verizon Communications, Inc. Senior Notes 4.86% due 08/21/2046		1,513,000		1,673,954
Verizon Communications, Inc. Senior Notes 6.40% due 09/15/2033		65,000		84,931
				15,995,494
Transport - Rail — 0.0%
Burlington Northern Santa Fe LLC Senior Notes 3.90% due 08/01/2046		475,000		516,295
Transport - Services — 0.1%
TTX Co. Senior Notes 4.20% due 07/01/2046*		728,000		787,367
Travel Services — 0.1%
Sabre GLBL, Inc. Senior Sec. Notes 5.38% due 04/15/2023*		714,000		738,097
Trucking/Leasing — 0.0%
Penske Truck Leasing Co. LP/PTL Finance Corp. Senior Notes 3.38% due 02/01/2022*		420,000		434,557
Wire & Cable Products — 0.1%
Belden, Inc. Company Guar. Notes 5.25% due 07/15/2024*		602,000		611,030
General Cable Corp. Company Guar. Notes 5.75% due 10/01/2022		482,000		457,746
				1,068,776
Total U.S. Corporate Bonds & Notes
(cost $355,025,580)				369,100,329
FOREIGN CORPORATE BONDS & NOTES — 6.3%
Agricultural Chemicals — 0.1%
Consolidated Energy Finance SA Company Guar. Notes 6.75% due 10/15/2019*		610,000		588,650
Auto - Cars/Light Trucks — 0.0%
Volkswagen International Finance NV Company Guar. Notes 2.38% due 03/22/2017*		323,000		324,518
Banks - Commercial — 1.4%
Australia & New Zealand Banking Group, Ltd. Senior Notes 1.60% due 07/15/2019		728,000		726,967
BPCE SA Sub. Notes 4.50% due 03/15/2025*		376,000		382,947
Cooperatieve Rabobank UA NY Company Guar. Notes 3.75% due 07/21/2026		812,000		821,226
Credit Suisse AG Senior Notes 1.70% due 04/27/2018		443,000		443,319

25

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Banks - Commercial (continued)
Credit Suisse NY Senior Notes 3.00% due 10/29/2021	$	611,000	$	630,799
DBS Group Holdings, Ltd. Senior Notes 2.25% due 07/16/2019*		1,529,000		1,548,050
Intesa Sanpaolo SpA Sub. Notes 5.02% due 06/26/2024*		1,342,000		1,266,852
Kookmin Bank Senior Notes 1.63% due 07/14/2017*#		1,906,000		1,907,976
Mizuho Bank, Ltd. Company Guar. Notes 2.15% due 10/20/2018*		533,000		538,009
Mizuho Bank, Ltd. Company Guar. Notes 2.45% due 04/16/2019*		591,000		600,369
National Bank of Canada Company Guar. Notes 1.45% due 11/07/2017		2,515,000		2,518,923
National Bank of Canada Bank Guar. Notes 2.10% due 12/14/2018		887,000		897,541
Rabobank Nederland NY Senior Notes 1.70% due 03/19/2018		377,000		378,971
Royal Bank of Canada Sub. Notes 4.65% due 01/27/2026		1,064,000		1,171,164
Santander Issuances SAU Company Guar. Notes 5.18% due 11/19/2025		1,000,000		1,037,928
Toronto-Dominion Bank Senior Notes 1.80% due 07/13/2021		1,383,000		1,375,257
				16,246,298
Beverages - Non-alcoholic — 0.2%
Coca-Cola Femsa SAB de CV Company Guar. Notes 2.38% due 11/26/2018		1,914,000		1,948,056
Beverages - Wine/Spirits — 0.2%
Bacardi, Ltd. Company Guar. Notes 2.75% due 07/15/2026*		401,000		399,295
Diageo Capital PLC Company Guar. Notes 5.75% due 10/23/2017		1,303,000		1,369,134
Pernod Ricard SA Senior Notes 3.25% due 06/08/2026*		772,000		794,347
				2,562,776
Building - Residential/Commercial — 0.1%
Mattamy Group Corp. Company Guar. Notes 6.50% due 11/15/2020*		629,000		621,138
Cable/Satellite TV — 0.3%
Altice Financing SA Senior Sec. Notes 7.50% due 05/15/2026*		1,520,000		1,599,800
Altice Luxembourg SA Company Guar. Notes 7.75% due 05/15/2022*		800,000		851,500

Security Description	Principal Amount		Value (Note 2)
Cable/Satellite TV (continued)
Numericable-SFR SA Senior Sec. Notes 7.38% due 05/01/2026*	$	1,363,000	$	1,407,297
				3,858,597
Chemicals - Diversified — 0.0%
NOVA Chemicals Corp. Senior Notes 5.00% due 05/01/2025*		425,000		438,813
Chemicals - Plastics — 0.1%
Mexichem SAB de CV Company Guar. Notes 5.88% due 09/17/2044*		982,000		987,892
Consumer Products - Misc. — 0.1%
Kimberly-Clark de Mexico SAB de CV Senior Notes 3.25% due 03/12/2025*		1,100,000		1,114,932
Containers - Metal/Glass — 0.0%
Novelis, Inc. Company Guar. Notes 8.75% due 12/15/2020		313,000		327,868
Cruise Lines — 0.1%
Royal Caribbean Cruises, Ltd. Senior Notes 5.25% due 11/15/2022#		193,000		210,370
Royal Caribbean Cruises, Ltd. Senior Notes 7.50% due 10/15/2027#		453,000		546,998
				757,368
Diversified Banking Institutions — 0.5%
BNP Paribas SA Sub. Notes 4.38% due 05/12/2026*		392,000		405,453
Credit Agricole SA Sub. Notes 4.38% due 03/17/2025*		505,000		519,891
Credit Suisse Group Funding Guernsey, Ltd Company Guar. Notes 4.55% due 04/17/2026*		539,000		569,734
Deutsche Bank AG Senior Notes 3.38% due 05/12/2021		555,000		554,835
Deutsche Bank AG Sub. Notes 4.50% due 04/01/2025#		524,000		495,146
HSBC Holdings PLC Sub. Notes 4.25% due 08/18/2025		391,000		406,097
Lloyds Banking Group PLC Sub. Notes 4.58% due 12/10/2025*		1,168,000		1,199,041
Mitsubishi UFJ Financial Group, Inc. Senior Notes 2.95% due 03/01/2021		1,135,000		1,170,691
UBS Group Funding Jersey, Ltd. Company Guar. Notes 4.13% due 09/24/2025*		269,000		283,431
				5,604,319
Diversified Financial Services — 0.1%
GE Capital International Funding Co. ULC Company Guar. Notes 4.42% due 11/15/2035		975,000		1,115,230

26

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Diversified Manufacturing Operations — 0.0%
Ingersoll-Rand Luxembourg Finance SA Company Guar. Notes 4.65% due 11/01/2044	$	452,000	$	504,376
Diversified Minerals — 0.1%
FMG Resources August 2006 Pty, Ltd. Senior Sec. Notes 9.75% due 03/01/2022*		562,000		649,110
Electric - Generation — 0.5%
Electricite de France SA Senior Notes 2.35% due 10/13/2020*#		3,082,000		3,158,390
Electricite de France SA Senior Notes 3.63% due 10/13/2025*		567,000		593,616
Electricite de France SA Senior Notes 4.95% due 10/13/2045*		1,299,000		1,488,689
Electricite de France SA Senior Notes 6.00% due 01/22/2114*		552,000		603,525
				5,844,220
Electronic Components - Semiconductors — 0.0%
Sensata Technologies UK Financing Co. PLC Company Guar. Notes 6.25% due 02/15/2026*		380,000		416,575
Finance - Leasing Companies — 0.1%
Aircastle, Ltd. Senior Notes 4.63% due 12/15/2018		68,000		71,145
Aircastle, Ltd. Senior Notes 5.50% due 02/15/2022		256,000		278,080
Aircastle, Ltd. Senior Notes 6.25% due 12/01/2019		323,000		357,319
Fly Leasing, Ltd. Senior Notes 6.38% due 10/15/2021		975,000		984,750
				1,691,294
Gold Mining — 0.0%
Goldcorp, Inc. Senior Notes 5.45% due 06/09/2044		501,000		547,781
Insurance - Life/Health — 0.0%
AIA Group, Ltd. Senior Notes 4.50% due 03/16/2046*		495,000		564,257
Insurance - Multi-line — 0.2%
XLIT, Ltd. Company Guar. Notes 4.45% due 03/31/2025		593,000		603,950
XLIT, Ltd. Company Guar. Notes 5.50% due 03/31/2045		1,334,000		1,340,918
				1,944,868
Machinery - General Industrial — 0.1%
ATS Automation Tooling Systems, Inc. Senior Notes 6.50% due 06/15/2023*		987,000		1,006,740

Security Description	Principal Amount		Value (Note 2)
Medical - Drugs — 0.4%
Takeda Pharmaceutical Co., Ltd. Senior Notes 1.63% due 03/17/2017*	$	1,458,000	$	1,461,620
Teva Pharmaceutical Finance Netherlands III BV Company Guar. Notes 2.80% due 07/21/2023		969,000		974,224
Teva Pharmaceutical Finance Netherlands III BV Company Guar. Notes 3.15% due 10/01/2026		1,061,000		1,068,287
Teva Pharmaceutical Finance Netherlands III BV Company Guar. Notes 4.10% due 10/01/2046		1,243,000		1,268,935
				4,773,066
Medical - Generic Drugs — 0.2%
Actavis Funding SCS Company Guar. Notes 3.00% due 03/12/2020		1,172,000		1,210,119
Perrigo Co. PLC Senior Notes 4.00% due 11/15/2023#		1,130,000		1,163,882
				2,374,001
Metal - Copper — 0.1%
First Quantum Minerals, Ltd. Company Guar. Notes 7.25% due 05/15/2022*		969,000		830,917
Oil Companies - Exploration & Production — 0.1%
Anadarko Finance Co. Company Guar. Notes 7.50% due 05/01/2031		681,000		826,184
MEG Energy Corp. Company Guar. Notes 6.38% due 01/30/2023*		497,000		387,660
MEG Energy Corp. Company Guar. Notes 6.50% due 03/15/2021*		475,000		389,500
				1,603,344
Oil Companies - Integrated — 0.6%
BP Capital Markets PLC Company Guar. Notes 1.38% due 11/06/2017		1,793,000		1,795,675
BP Capital Markets PLC Company Guar. Notes 1.68% due 05/03/2019		781,000		787,334
BP Capital Markets PLC Company Guar. Notes 3.12% due 05/04/2026		626,000		646,850
BP Capital Markets PLC Company Guar. Notes 3.25% due 05/06/2022		588,000		622,780
Petroleos Mexicanos Company Guar. Notes 5.50% due 06/27/2044		263,000		249,850
Shell International Finance BV Company Guar. Notes 1.25% due 11/10/2017		888,000		889,176
Shell International Finance BV Company Guar. Notes 2.13% due 05/11/2020		902,000		920,982
Shell International Finance BV Company Guar. Notes 2.25% due 11/10/2020		1,024,000		1,047,497

27

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Oil Companies - Integrated (continued)
Shell International Finance BV Company Guar. Notes 4.00% due 05/10/2046	$	390,000	$	408,688
				7,368,832
Paper & Related Products — 0.0%
Cascades, Inc. Company Guar. Notes 5.75% due 07/15/2023*		350,000		354,025
Printing - Commercial — 0.1%
Cimpress NV Company Guar. Notes 7.00% due 04/01/2022*		740,000		771,450
Satellite Telecom — 0.2%
Inmarsat Finance PLC Company Guar. Notes 4.88% due 05/15/2022*		975,000		950,820
Telesat Canada/Telesat LLC Company Guar. Notes 6.00% due 05/15/2017*		1,165,000		1,165,000
				2,115,820
Security Services — 0.0%
Garda World Security Corp. Company Guar. Notes 7.25% due 11/15/2021*		358,000		326,675
Semiconductor Components - Integrated Circuits — 0.0%
NXP BV/NXP Funding LLC Company Guar. Notes 4.63% due 06/01/2023*		395,000		416,725
Steel - Producers — 0.1%
ArcelorMittal Senior Notes 7.25% due 02/25/2022#		1,351,000		1,519,875
SupraNational Banks — 0.1%
North American Development Bank Senior Notes 2.30% due 10/10/2018		1,002,000		1,019,371
Telephone - Integrated — 0.1%
Telecom Italia Capital SA Company Guar. Notes 7.72% due 06/04/2038		1,327,000		1,456,382
Transport - Rail — 0.1%
Canadian Pacific Railway Co. Senior Notes 6.13% due 09/15/2115		623,000		776,852
Total Foreign Corporate Bonds & Notes
(cost $73,436,767)				75,373,011
FOREIGN GOVERNMENT OBLIGATIONS — 0.7%
Electric - Distribution — 0.1%
Hydro-Quebec Government Guar. Notes 1.38% due 06/19/2017		1,036,000		1,038,765
Sovereign — 0.6%
Government of Canada Senior Notes 0.88% due 02/14/2017		1,006,000		1,006,382
United Mexican States Senior Notes 3.50% due 01/21/2021#		2,527,000		2,700,731

Security Description	Principal Amount		Value (Note 2)
Sovereign (continued)
United Mexican States Senior Notes 3.60% due 01/30/2025	$	983,000	$	1,041,980
United Mexican States Senior Notes 4.35% due 01/15/2047		1,128,000		1,163,250
United Mexican States Senior Bonds 4.75% due 03/08/2044		1,730,000		1,905,163
				7,817,506
Total Foreign Government Obligations
(cost $8,270,374)				8,856,271
U.S. GOVERNMENT AGENCIES — 36.9%
Federal Home Loan Mtg. Corp. — 15.3%
2.49% due 02/01/2037 FRS		411,071		427,970
2.50% due 01/01/2028		958,389		994,817
2.50% due 04/01/2028		2,042,596		2,120,363
2.50% due 03/01/2031		636,400		658,560
2.97% due 11/01/2037 FRS		2,597,022		2,744,711
3.00% due 11/01/2026		4,895,580		5,134,894
3.00% due 08/01/2027		398,109		417,396
3.00% due 10/01/2042		1,887,125		1,959,888
3.00% due 11/01/2042		1,456,702		1,515,141
3.00% due 02/01/2043		2,154,419		2,243,018
3.00% due 04/01/2043		3,684,972		3,849,607
3.00% due 05/01/2043		778,702		818,395
3.00% due 08/01/2043		7,668,050		7,975,591
3.00% due 07/01/2045		13,381,149		13,897,091
3.00% due 10/01/2045		8,048,410		8,358,735
3.00% due 12/01/2045		2,382,059		2,473,905
3.00% due 05/01/2046		1,383,830		1,437,186
3.00% due September 30 TBA		5,078,000		5,269,020
3.50% due 02/01/2042		515,977		544,438
3.50% due 03/01/2042		5,586,011		5,902,932
3.50% due 04/01/2042		2,205,139		2,338,781
3.50% due 08/01/2042		7,270,330		7,699,878
3.50% due 09/01/2043		1,971,608		2,076,811
3.50% due 03/01/2045		7,901,014		8,323,081
3.50% due 07/01/2045		3,500,749		3,689,449
3.50% due 08/01/2045		3,158,753		3,355,588
3.50% due 10/01/2045		5,412,595		5,700,689
3.50% due 11/01/2045		6,183,562		6,512,692
3.50% due 01/01/2046		3,769,845		3,970,501
3.50% due 03/01/2046		7,151,729		7,532,391
4.00% due 03/01/2023		608,098		627,868
4.00% due 09/01/2040		2,516,572		2,703,621
4.00% due 10/01/2043		6,952,673		7,452,231
4.00% due 07/01/2044		3,492,225		3,735,386
4.00% due 10/01/2045		7,254,189		7,760,586
4.00% due 11/01/2045		11,017,656		11,786,422
4.50% due 11/01/2018		17,108		17,525
4.50% due 02/01/2019		23,650		24,227
4.50% due 01/01/2039		37,663		41,195
4.50% due 12/01/2039		898,946		982,121
4.50% due 04/01/2044		1,156,122		1,263,563
4.50% due 07/01/2044		1,924,173		2,117,759
4.50% due 09/01/2044		9,091,990		9,932,118
4.50% due 03/01/2046		1,608,112		1,760,649
5.00% due 10/01/2033		2,096		2,310
5.00% due 07/01/2040		985,523		1,091,005
5.00% due 11/01/2043		4,681,782		5,214,200
5.50% due 11/01/2018		10,603		10,873
5.50% due 11/01/2032		15,610		17,630
5.50% due 07/01/2034		33,038		37,446

28

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount		Value (Note 2)
U.S. GOVERNMENT AGENCIES (continued)
Federal Home Loan Mtg. Corp. (continued)
5.50% due 02/01/2035	$	53,723	$	60,010
5.50% due 07/01/2035		1,636		1,854
5.50% due 01/01/2036		302,332		340,517
5.50% due 05/01/2037		52,609		59,027
6.00% due 07/01/2035		91,525		104,154
6.00% due 03/01/2040		261,915		299,672
6.50% due 12/01/2032		81,114		92,951
6.50% due 02/01/2036		19,446		23,030
6.50% due 09/01/2036		431		509
6.50% due 05/01/2037		77,696		89,439
7.00% due 11/01/2016		17		17
Federal Home Loan Mtg. Corp. REMIC FRS Series 3572, Class JS 6.28% due 09/15/2039(3)(7)(8)		1,743,369		259,655
Federal Home Loan Mtg. Corp. Structured Agency Credit Risk
Series 2014-HQ1, Class M1
2.17% due 08/25/2024 FRS(3)		40,937		40,988
Series 2014-DN1, Class M2
2.72% due 02/25/2024 FRS(3)		1,580,000		1,619,590
Series 2014-HQ2, Class M2
2.72% due 09/25/2024 FRS(3)		2,790,000		2,859,109
Series 2015-HQ1, Class M2
2.72% due 03/25/2025 FRS(3)		25,000		25,435
Series 2014-HQ3, Class M2
3.17% due 10/25/2024 FRS(3)		167,882		170,096
Series 2015-HQA1, Class M2
3.17% due 03/25/2028 FRS(3)		1,271,000		1,302,054
				183,870,361
Federal National Mtg. Assoc. — 19.1%
2.43% due 09/01/2035 FRS		2,070,061		2,171,407
2.50% due 09/01/2027		636,180		657,915
2.50% due 02/01/2028		1,931,617		2,004,512
2.50% due 04/01/2028		532,672		552,764
2.50% due 02/01/2031		3,376,801		3,492,084
2.50% due 05/01/2031		5,844,098		6,043,614
2.50% due September 15 TBA		7,907,000		8,170,154
2.62% due 05/01/2037 FRS		626,488		655,278
2.64% due 10/01/2040 FRS		662,561		702,166
2.67% due 10/01/2035 FRS		2,225,513		2,355,888
2.67% due 05/01/2040 FRS		2,439,051		2,574,514
2.69% due 10/01/2040 FRS		1,238,286		1,311,547
2.78% due 07/01/2039 FRS		1,625,649		1,703,533
2.78% due 11/01/2036 FRS		1,009,911		1,070,443
3.00% due 04/01/2027		1,365,622		1,431,850
3.00% due 10/01/2027		273,691		286,710
3.00% due 11/01/2027		1,965,159		2,061,232
3.00% due 01/01/2028		2,615,466		2,743,317
3.00% due 10/01/2030		4,018,450		4,209,601
3.00% due 03/01/2042		3,521,054		3,660,716
3.00% due 12/01/2042		3,518,948		3,675,112
3.00% due 05/01/2043		4,137,673		4,302,947
3.00% due 02/01/2045		2,927,570		3,040,280
3.00% due 06/01/2045		1,876,446		1,965,062
3.00% due 05/01/2046		4,492,383		4,665,337
3.00% due September 15 TBA		4,035,000		4,224,771
3.00% due September 30 TBA		2,534,000		2,629,421
3.03% due 08/01/2035 FRS		1,364,653		1,441,999
3.50% due 08/01/2026		1,815,728		1,918,158
3.50% due 09/01/2026		1,610,846		1,706,014
3.50% due 08/01/2027		334,789		353,781

Security Description	Principal Amount		Value (Note 2)
Federal National Mtg. Assoc. (continued)
3.50% due 10/01/2028	$	3,585,782	$	3,794,001
3.50% due 12/01/2041		560,454		597,488
3.50% due 03/01/2042		773,299		817,876
3.50% due 08/01/2042		4,937,585		5,240,205
3.50% due 09/01/2042		713,549		754,594
3.50% due 02/01/2043		3,488,497		3,751,354
3.50% due 08/01/2043		3,154,698		3,333,963
3.50% due 07/01/2045		2,466,973		2,601,960
3.50% due 08/01/2045		3,133,491		3,322,364
3.50% due 09/01/2045		728,109		767,483
3.50% due 10/01/2045		3,600,386		3,840,969
3.50% due 11/01/2045		6,617,583		6,986,591
3.50% due 12/01/2045		9,893,786		10,426,181
3.50% due 02/01/2046		2,939,488		3,097,665
3.50% due 03/01/2046		9,059,060		9,546,537
3.50% due September 15 TBA		1,968,000		2,078,047
3.50% due September 30 TBA		2,119,000		2,232,979
4.00% due 11/01/2025		144,382		153,797
4.00% due 06/01/2039		610,445		672,362
4.00% due 09/01/2040		167,089		179,465
4.00% due 10/01/2040		384,641		413,231
4.00% due 12/01/2040		2,748,158		2,954,228
4.00% due 10/01/2041		1,635,064		1,758,484
4.00% due 11/01/2041		1,900,443		2,043,681
4.00% due 01/01/2043		1,289,068		1,402,025
4.00% due 10/01/2043		4,715,432		5,063,623
4.00% due 12/01/2043		558,125		611,327
4.00% due 10/01/2044		7,887,917		8,446,390
4.00% due 11/01/2044		2,180,419		2,336,172
4.00% due 02/01/2045		2,035,379		2,183,714
4.00% due September 30 TBA		8,842,000		9,471,992
4.50% due 06/01/2018		2,454		2,514
4.50% due 10/01/2024		637,795		685,035
4.50% due 03/01/2025		941,643		1,011,819
4.50% due 06/01/2039		221,198		241,382
4.50% due 01/01/2040		660,762		735,906
4.50% due 02/01/2040		1,314,688		1,468,148
4.50% due 05/01/2040		472,572		526,155
4.50% due 08/01/2040		534,387		583,339
4.50% due 11/01/2040		490,530		538,071
4.50% due 12/01/2040		492,255		539,983
4.50% due 05/01/2041		1,185,523		1,300,172
4.50% due 07/01/2041		584,585		638,232
4.50% due 03/01/2042		5,045,146		5,535,717
4.50% due 08/01/2044		2,968,376		3,242,666
4.50% due 10/01/2044		5,593,280		6,109,598
4.50% due 12/01/2044		1,230,253		1,342,512
4.50% due 08/01/2045		4,198,445		4,699,424
4.50% due September 30 TBA		1,778,000		1,942,187
5.00% due 09/01/2018		1,675		1,722
5.00% due 10/01/2018		1,654		1,706
5.00% due 03/01/2020		4,127		4,312
5.00% due 06/01/2022		114,357		122,205
5.00% due 10/01/2024		297,983		309,394
5.00% due 09/01/2033		915,700		1,026,528
5.00% due 04/01/2040		575,235		642,767
5.00% due 05/01/2040		966,509		1,075,321
5.00% due 06/01/2040		4,768,444		5,291,603
5.00% due 07/01/2040		1,863,510		2,067,399
5.00% due 02/01/2045		2,645,005		2,990,019
5.50% due 12/01/2029		237,774		267,252
5.50% due 12/01/2033		46,004		52,257
5.50% due 07/01/2037		53,152		59,797
5.50% due 08/01/2037		2,231,192		2,526,282

29

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount			Value (Note 2)
U.S. GOVERNMENT AGENCIES (continued)
Federal National Mtg. Assoc. (continued)
5.50% due 06/01/2038	$	271,127		$	307,311
5.50% due 09/01/2039		845,090			962,812
6.00% due 12/01/2016		123			123
6.00% due 08/01/2034		41,039			47,366
6.00% due 11/01/2035		62,704			72,299
6.00% due 06/01/2036		99,640			114,416
6.00% due 12/01/2036		175,458			201,108
6.00% due 07/01/2038		823,870			944,526
6.00% due 09/01/2038		447,271			512,440
6.00% due 11/01/2038		271,454			310,903
6.50% due 02/01/2017		572			575
Fannie Mae Connecticut Avenue Securities FRS Series 2013-C01, Class M1 2.52% due 10/25/2023(3)		61,383			61,984
					229,780,162
Government National Mtg. Assoc. — 2.5%
3.00% due 02/20/2045		3,014,860			3,162,704
3.00% due 05/20/2045		2,287,486			2,399,660
3.00% due 07/20/2045		545,151			571,884
3.00% due September 30 TBA		2,686,000			2,814,005
3.50% due 03/20/2045		2,274,413			2,414,615
3.50% due 04/20/2045		6,768,581			7,185,673
3.50% due 07/20/2045		1,051,974			1,116,973
4.00% due 03/20/2044		1,280,673			1,368,845
4.00% due 07/20/2045		1,753,733			1,874,689
4.00% due 10/20/2045		1,578,181			1,687,053
4.50% due 05/15/2039		715,125			805,117
4.50% due 02/20/2046		1,528,389	��		1,651,161
5.00% due 05/15/2034		310,226			349,893
5.00% due 01/15/2040		627,097			711,849
5.50% due 12/15/2039		813,759			927,346
6.00% due 10/15/2039		593,369			678,102
7.00% due 09/15/2028		3,984			4,083
					29,723,652
Tennessee Valley Authority — 0.0%
1.75% due 10/15/2018		565,000			574,359
Total U.S. Government Agencies
(cost $437,274,858)					443,948,534
U.S. GOVERNMENT TREASURIES — 18.5%
United States Treasury Bonds — 7.0%
2.50% due 02/15/2045		7,500,000			7,920,705
2.50% due 02/15/2046		4,383,000			4,631,087
2.50% due 05/15/2046		6,113,000			6,469,987
2.88% due 08/15/2045		1,984,000			2,256,336
3.00% due 05/15/2045		4,349,000			5,063,188
3.00% due 11/15/2045		14,609,000			17,024,627
3.13% due 11/15/2041		3,426,000			4,068,509
3.13% due 02/15/2042		8,027,000			9,542,409
3.13% due 08/15/2044		310,000			369,275
3.63% due 08/15/2043		2,000,000			2,597,812
3.63% due 02/15/2044		523,000			679,553
3.75% due 08/15/2041		152,000			199,138
3.75% due 11/15/2043		5,000,000			6,640,235
3.88% due 08/15/2040		588,000			781,879
4.25% due 11/15/2040		3,000,000			4,208,556
4.38% due 05/15/2041		1,901,000			2,720,880
4.50% due 02/15/2036		4,510,000			6,447,537
4.63% due 02/15/2040		284,000			417,269
5.25% due 11/15/2028		1,575,000			2,196,141
					84,235,123
United States Treasury Notes — 11.5%
0.13% due 04/15/2018 TIPS(9)		2,290,636			2,301,501
0.63% due 11/30/2017		9,203,000			9,190,778

Security Description	Principal Amount		Value (Note 2)
United States Treasury Notes (continued)
0.75% due 01/31/2018	$	1,173,000	$	1,172,863
0.75% due 02/28/2018		2,618,000		2,617,285
0.88% due 01/31/2018		7,767,000		7,780,957
1.00% due 05/31/2018		13,800,000		13,848,521
1.13% due 06/30/2021#		7,964,000		7,940,666
1.13% due 07/31/2021#		1,970,000		1,963,536
1.25% due 11/30/2018		19,634,000		19,811,158
1.25% due 01/31/2020		1,000,000		1,008,008
1.38% due 06/30/2018		4,000,000		4,041,408
1.38% due 07/31/2018		4,800,000		4,851,562
1.38% due 12/31/2018		2,002,000		2,026,086
1.38% due 03/31/2020		3,064,000		3,100,385
1.38% due 04/30/2020		1,554,000		1,572,272
1.38% due 09/30/2020		1,984,000		2,003,995
1.38% due 01/31/2021		500,000		504,531
1.50% due 08/31/2018		7,000,000		7,094,339
1.50% due 02/28/2023		3,000,000		3,018,048
1.63% due 12/31/2019		584,000		596,045
1.63% due 02/15/2026		25,000,000		25,101,550
1.63% due 05/15/2026#		3,884,000		3,898,716
1.75% due 12/31/2020		480,000		492,094
2.00% due 11/15/2021		1,001,000		1,038,890
2.00% due 07/31/2022		492,000		510,546
2.00% due 02/15/2025		664,000		688,640
2.00% due 08/15/2025		325,000		336,908
2.13% due 12/31/2021		473,000		493,934
2.38% due 05/31/2018		5,631,000		5,785,194
3.13% due 05/15/2021		2,199,000		2,392,701
3.38% due 11/15/2019		1,099,000		1,182,112
				138,365,229
Total U.S. Government Treasuries
(cost $210,731,966)				222,600,352
MUNICIPAL BONDS & NOTES — 0.1%
Port Authority of New York & New Jersey Revenue Bonds Series 174 4.46% due 10/01/2062 (cost $1,010,000)		1,010,000		1,193,830
COMMON STOCKS — 0.0%
Television — 0.0%
ION Media Networks, Inc.†(4)(5) (cost $1)		79		94,101
PREFERRED SECURITIES — 0.1%
Electric - Distribution — 0.0%
Entergy Louisiana LLC 4.70%		22,875		578,051
Sovereign Agency — 0.0%
Federal Home Loan Mtg. Corp. FRS Series Z 8.38%#†		6,900		25,530
Telecom Services — 0.1%
Qwest Corp. 6.13%#		44,275		1,124,585
Total Preferred Securities
(cost $1,785,164)				1,728,166
PREFERRED SECURITIES/CAPITAL SECURITIES — 1.3%
Banks - Commercial — 0.0%
Standard Chartered PLC VRS 7.50% due 04/02/2022*(2)		354,000		353,646
Banks - Super Regional — 0.1%
Fifth Third Bancorp FRS Series J 4.90% due 09/30/2019#(2)		1,323,000		1,296,540

30

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares/ Principal Amount		Value (Note 2)
PREFERRED SECURITIES/CAPITAL SECURITIES (continued)
Banks - Super Regional (continued)
Wells Fargo Capital X 5.95% due 12/01/2086	$	413,000	$	456,365
				1,752,905
Diversified Banking Institutions — 0.3%
BAC Capital Trust XIII FRS Series F 4.00% due 09/19/2016(2)		862,000		699,082
JPMorgan Chase & Co. FRS Series U 6.13% due 04/30/2024(2)		1,759,000		1,883,229
Royal Bank of Scotland Group PLC VRS 8.00% due 08/10/2025(2)		425,000		411,273
Societe Generale SA FRS 7.88% due 12/18/2023*#(2)		993,000		987,042
				3,980,626
Electric - Integrated — 0.1%
Dominion Resources, Inc. FRS 5.75% due 10/01/2054		754,000		778,505
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. FRS 4.75% due 04/30/2043		817,000		825,329
Financial Guarantee Insurance — 0.1%
Assured Guaranty Municipal Holdings, Inc. FRS 6.40% due 12/15/2066*		1,309,000		994,840
Food - Dairy Products — 0.1%
Land O’Lakes Capital Trust I 7.45% due 03/15/2028*		860,000		944,925
Insurance - Life/Health — 0.1%
Prudential Financial, Inc. FRS 5.38% due 05/15/2045		407,000		427,350
Prudential Financial, Inc. FRS 5.63% due 06/15/2043		921,000		987,773
				1,415,123
Insurance - Multi - line — 0.2%
MetLife Capital Trust IV 7.88% due 12/15/2067*		577,000		724,135
MetLife, Inc. 6.40% due 12/15/2066		1,052,000		1,181,396
				1,905,531
Pipelines — 0.0%
Transcanada Trust FRS 5.63% due 05/20/2075		490,000		486,325
Tools - Hand Held — 0.2%
Stanley Black & Decker, Inc. FRS 5.75% due 12/15/2053#		1,817,000		1,946,915
Total Preferred Securities/Capital Securities
(cost $14,551,688)				15,384,685
Total Long - Term Investment Securities
(cost $1,132,114,017)				1,168,729,535
SHORT-TERM INVESTMENT SECURITIES — 7.5%
Registered Investment Companies — 1.3%
State Street Navigator Securities Lending Prime Portfolio 0.43%(10)(11)		15,720,177		15,720,177

Security Description	Principal Amount			Value (Note 2)
Time Deposits — 6.2%
Euro Time Deposit with State Street Bank and Trust Co. 0.01% due 09/01/2016	$	74,052,000		$	74,052,000
Total Short-Term Investment Securities
(cost $89,772,177)					89,772,177
TOTAL INVESTMENTS
(cost $1,221,886,194)(12)		104.6	%		1,258,501,712
Liabilities in excess of other assets		(4.6	)		(55,586,731	)
NET ASSETS		100.0	%	$	1,202,914,981

* 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 August 31, 2016, the aggregate value of these securities was $145,058,401 representing 12.1% 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) Perpetual maturity — maturity date reflects the next call date.

(3) Collateralized Mortgage Obligation

(4) Fair valued security. Securities are classified as Level 3 based on the securities valuation inputs (see Note 2).

(5) Illiquid security. At August 31, 2016, the aggregate value of these securities was $94,219 representing 0.0% of net assets.

(6) “Step-up” security where the rate increases (“steps-up”) at a predetermined rate. Rate shown reflects the increased rate.

(7) Interest Only

(8) Inverse Floating Rate Security that pays interest that varies inversely to changes in the market interest rates. The interest rate shown is the current interest rate at August 31, 2016.

(9) Principal amount of security is adjusted for inflation.

(10) At August 31, 2016, the Fund had loaned securities with a total value of $15,435,073. This was secured by collateral of $15,720,177, which was received in cash and subsequently invested in short-term investments currently valued at $15,720,177 as reported in the Portfolio of Investments. Additional collateral of $29,576 was received in the form of fixed income pooled securities, which the Fund cannot sell or repledge. The components of the fixed income pooled securities referenced above are as follows:

Securities	Coupon Range	Maturity Date Range	Value as of August 31, 2016
Federal Farm Credit Bank	2.50% to 3.53%	12/20/2023 to 04/18/2036	$	6,004
Federal Home Loan Bank	0.00% to 3.24%	09/01/2016 to 10/25/2032		3,736
Federal Home Loan Mtg. Corp.	0.00% to 10.50%	11/01/2016 to 08/01/2046		8,162
Federal National Mtg. Assoc.	0.00% to 10.50%	11/01/2016 to 09/01/2046		10,113
Government National Mtg. Assoc.	0.81% to 10.00%	11/15/2016 to 06/20/2065		1,076
Tennessee Valley Authority	5.88% to 5.88%	04/01/2036 to 04/01/2036		485

(11) The rate shown is the 7-day yield as of August 31, 2016.

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

REMIC — Real Estate Mortgage Investment Conduit

TBA — Securities purchased on a forward commitment basis with an approximate principal amount and no definite maturity date. The actual principal and maturity date will be determined upon settlement date.

TIPS — Treasury Inflation Protected Security

FRS — Floating Rate Security

VRS — Variable Rate Security

The rates shown on FRS and VRS are the current interest rates at February 29, 2016 and unless noted otherwise, the dates are the original maturity dates.

31

VALIC Company II Core Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

The following is a summary of the inputs used to value the Fund’s net assets as of August 31, 2016 (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	$	—	$	30,450,256	$	—	$	30,450,256
U.S. Corporate Bonds & Notes:
Airlines		—��		1,606,072		45,277		1,651,349
Finance - Investment Banker/Broker		—		827,330		41		827,371
Gambling (Non-Hotel)		—		1,184,000		62		1,184,062
Other Industries		—		365,437,547		—		365,437,547
Foreign Corporate Bonds and Notes		—		75,373,011		—		75,373,011
Foreign Government Obligations		—		8,856,271		—		8,856,271
U.S. Government Agencies		—		443,948,534		—		443,948,534
U.S. Government Treasuries		—		222,600,352		—		222,600,352
Municipal Bonds & Notes		—		1,193,830		—		1,193,830
Common Stocks		—		—		94,101		94,101
Preferred Securities		1,728,166		—		—		1,728,166
Preferred Securities/Capital Securities
Finance - Investment Banker/Broker		—		—		15		15
Other Industries		—		15,384,670		—		15,384,670
Short-Term Investment Securities:
Registered Investment Companies		15,720,177		—		—		15,720,177
Time Deposits		—		74,052,000		—		74,052,000
Total Investments at Value	$	17,448,343	$	1,240,913,873	$	139,496	$	1,258,501,712

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

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no material transfers between Levels during the reporting period.

At the beginning and end of the reporting period, Level 3 investments were not considered a material portion of the Fund.

See Notes to Financial Statements

32

VALIC Company II High Yield Bond Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Oil Companies — Exploration & Production		10.5	%
Registered Investment Companies		8.2
Cable/Satellite TV		7.6
Repurchase Agreements		6.8
Medical — Hospitals		6.4
Medical — Drugs		4.1
Cellular Telecom		3.7
Television		3.4
Building — Residential/Commercial		3.2
Diversified Banking Institutions		2.7
Containers — Metal/Glass		2.4
Building & Construction Products — Misc.		2.3
Telephone — Integrated		2.3
Steel — Producers		2.3
Data Processing/Management		2.2
Pipelines		1.9
Finance — Leasing Companies		1.6
Containers — Paper/Plastic		1.6
Banks — Commercial		1.2
Finance — Consumer Loans		1.2
Semiconductor Equipment		1.1
Building Products — Cement		1.1
Telecommunication Equipment	��	1.1
Diagnostic Kits		1.1
Cosmetics & Toiletries		1.0
Finance — Other Services		1.0
Office Automation & Equipment		0.9
Diversified Minerals		0.9
Food — Flour & Grain		0.9
Food — Canned		0.8
Internet Connectivity Services		0.8
Metal — Aluminum		0.8
Internet Content — Entertainment		0.8
Financial Guarantee Insurance		0.8
Enterprise Software/Service		0.8
Telecom Services		0.8
Retail — Apparel/Shoe		0.8
Broadcast Services/Program		0.7
Diversified Manufacturing Operations		0.7
Electronic Components — Semiconductors		0.7
Disposable Medical Products		0.6
Applications Software		0.6
Physicians Practice Management		0.5
Chemicals — Specialty		0.5
Retail — Restaurants		0.5
Printing — Commercial		0.5
Semiconductor Components — Integrated Circuits		0.5
Multimedia		0.5
Casino Hotels		0.5
Machinery — Material Handling		0.5
Retail — Arts & Crafts		0.5
Medical — Wholesale Drug Distribution		0.5
Soap & Cleaning Preparation		0.4
Medical — Outpatient/Home Medical		0.4
Retail — Leisure Products		0.4
Machinery — General Industrial		0.4
Funeral Services & Related Items		0.4
Racetracks		0.4
Decision Support Software		0.4
Metal Processors & Fabrication		0.4
Hotels/Motels		0.3
Electric — Integrated		0.3
Security Services		0.3
Distribution/Wholesale		0.3
Real Estate Investment Trusts		0.3
Casino Services		0.2
Hazardous Waste Disposal		0.2
Oil & Gas Drilling		0.2
Forestry		0.2

Radio	0.2
Steel — Specialty	0.2
Gambling (Non-Hotel)	0.2
E-Commerce/Products	0.1
Insurance — Life/Health	0.1
Coatings/Paint	0.1
Insurance — Property/Casualty	0.1
Food — Misc./Diversified	0.1
Medical — HMO	0.1
Music	0.1
Medical Labs & Testing Services	0.1
Beverages — Wine/Spirits	0.1
	106.4	%

Credit Quality†#

Baa	0.4	%
Ba	29.7
B	46.6
Caa	19.5
Ca	0.3
Not Rated@	3.5
	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.

33

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Principal Amount(11)		Value (Note 2)
CONVERTIBLE BONDS & NOTES — 0.4%
Building - Residential/Commercial — 0.1%
M/I Homes, Inc. Company Guar. Notes 3.00% due 03/01/2018(1)	$	330,000	$	333,713
Financial Guarantee Insurance — 0.2%
MGIC Investment Corp. Senior Notes 2.00% due 04/01/2020		1,010,000		1,299,112
Oil Companies - Exploration & Production — 0.1%
Cobalt International Energy, Inc. Senior Notes 2.63% due 12/01/2019		1,465,000		668,406
Total Convertible Bonds & Notes
(cost $3,147,864)				2,301,231
U.S. CORPORATE BONDS & NOTES — 71.6%
Advertising Sales — 0.0%
Lamar Media Corp. Company Guar. Notes 5.75% due 02/01/2026		240,000		259,500
Applications Software — 0.6%
Emdeon, Inc. Company Guar. Notes 6.00% due 02/15/2021*		2,125,000		2,252,500
Emdeon, Inc. Company Guar. Notes 11.00% due 12/31/2019		1,285,000		1,358,887
				3,611,387
Beverages - Wine/Spirits — 0.1%
Constellation Brands, Inc. Company Guar. Notes 4.25% due 05/01/2023		430,000		458,756
Broadcast Services/Program — 0.7%
Liberty Interactive LLC Senior Notes 8.25% due 02/01/2030		4,055,000		4,359,125
Building & Construction Products-Misc. — 2.3%
Builders FirstSource, Inc. Senior Sec. Notes 5.63% due 09/01/2024*		2,120,000		2,157,100
Nortek, Inc. Company Guar. Notes 8.50% due 04/15/2021		3,185,000		3,336,288
Ply Gem Industries Inc. Company Guar. Notes 6.50% due 02/01/2022		2,440,000		2,519,300
Standard Industries, Inc. Senior Notes 5.13% due 02/15/2021*		550,000		580,938
Standard Industries, Inc. Senior Notes 5.38% due 11/15/2024*		4,810,000		5,116,637
				13,710,263
Building Products - Cement — 0.5%
Cemex Finance LLC Senior Sec. Notes 6.00% due 04/01/2024*		2,755,000		2,906,525
Building Products - Wood — 0.0%
Masco Corp. Senior Notes 7.75% due 08/01/2029		145,000		174,000

Security Description	Principal Amount(11)		Value (Note 2)
Building - Residential/Commercial — 3.1%
DR Horton, Inc. Company Guar. Notes 4.38% due 09/15/2022	$	1,365,000	$	1,440,075
DR Horton, Inc. Company Guar. Notes 5.75% due 08/15/2023		340,000		383,350
KB Home Company Guar. Notes 4.75% due 05/15/2019		445,000		452,788
KB Home Company Guar. Notes 7.00% due 12/15/2021		2,230,000		2,380,525
KB Home Company Guar. Notes 7.50% due 09/15/2022		2,255,000		2,407,212
KB Home Company Guar. Notes 8.00% due 03/15/2020		1,461,000		1,618,057
Lennar Corp. Company Guar. Notes 4.75% due 04/01/2021		2,370,000		2,543,010
Lennar Corp. Company Guar. Notes 4.75% due 11/15/2022		2,721,000		2,863,852
Lennar Corp. Company Guar. Notes 4.88% due 12/15/2023		610,000		638,975
M/I Homes, Inc. Company Guar. Notes 6.75% due 01/15/2021		3,295,000		3,443,275
PulteGroup, Inc. Company Guar. Notes 6.38% due 05/15/2033		285,000		299,963
				18,471,082
Cable/Satellite TV — 5.8%
CCO Holdings LLC/CCO Holdings Capital Corp. Senior Bonds 5.13% due 02/15/2023		150,000		157,500
CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.13% due 05/01/2023*		4,220,000		4,440,242
CCO Holdings LLC/CCO Holdings Capital Corp. Senior Bonds 5.25% due 09/30/2022		665,000		698,250
CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.75% due 09/01/2023		715,000		754,325
CCO Holdings LLC/CCO Holdings Capital Corp. Senior Bonds 5.75% due 01/15/2024#		360,000		382,950
CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.75% due 02/15/2026*		1,815,000		1,942,050
CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.88% due 04/01/2024*#		1,490,000		1,605,475

34

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(11)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Cable/Satellite TV (continued)
Cequel Communications Holdings I LLC/Cequel Capital Corp. Senior Notes 5.13% due 12/15/2021*	$	6,305,000	$	6,364,293
Charter Communications Operating LLC/Charter Communications Operating Capital Senior Sec. Notes 4.91% due 07/23/2025*		845,000		932,390
CSC Holdings LLC Senior Notes 5.25% due 06/01/2024#		2,950,000		2,870,704
CSC Holdings LLC Senior Notes 10.13% due 01/15/2023*		1,145,000		1,307,447
CSC Holdings LLC Senior Notes 10.88% due 10/15/2025*		1,055,000		1,236,987
DISH DBS Corp. Company Guar. Notes 5.00% due 03/15/2023		2,070,000		1,992,582
DISH DBS Corp. Company Guar. Notes 6.75% due 06/01/2021		5,951,000		6,393,606
DISH DBS Corp. Company Guar. Notes 7.88% due 09/01/2019		2,710,000		3,021,650
				34,100,451
Casino Hotels — 0.5%
Boyd Gaming Corp. Company Guar. Notes 6.38% due 04/01/2026*		2,620,000		2,790,300
Casino Services — 0.2%
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp. Senior Sec. Notes 6.13% due 08/15/2021*		1,300,000		1,339,000
Cellular Telecom — 3.7%
Sprint Communications, Inc. Company Guar. Notes 7.00% due 03/01/2020*		3,640,000		3,903,900
Sprint Communications, Inc. Company Guar. Notes 9.00% due 11/15/2018*		1,955,000		2,152,944
Sprint Corp. Company Guar. Notes 7.13% due 06/15/2024		3,945,000		3,678,713
Sprint Corp. Company Guar. Notes 7.25% due 09/15/2021		3,815,000		3,772,081
Sprint Corp. Company Guar. Notes 7.88% due 09/15/2023		3,615,000		3,513,744
T-Mobile USA, Inc. Company Guar. Notes 6.63% due 11/15/2020		2,565,000		2,648,362
T-Mobile USA, Inc. Company Guar. Notes 6.63% due 04/28/2021		1,975,000		2,068,813
				21,738,557

Security Description	Principal Amount(11)		Value (Note 2)
Chemicals - Specialty — 0.5%
Chemours Co. Company Guar. Notes 6.63% due 05/15/2023#	$	2,770,000	$	2,659,200
Chemours Co. Company Guar. Notes 7.00% due 05/15/2025#		455,000		435,378
				3,094,578
Coatings/Paint — 0.1%
Axalta Coating Systems LLC Company Guar. Notes 4.88% due 08/15/2024*		755,000		787,088
Containers - Metal/Glass — 1.5%
Ball Corp. Company Guar. Notes 3.50% due 12/15/2020	EUR	465,000		577,036
Ball Corp. Company Guar. Notes 4.38% due 12/15/2023	EUR	620,000		797,391
Owens-Brockway Glass Container, Inc. Company Guar. Notes 5.88% due 08/15/2023*#		4,220,000		4,620,900
Owens-Brockway Glass Container, Inc. Company Guar. Notes 6.38% due 08/15/2025*		2,600,000		2,886,000
				8,881,327
Containers - Paper/Plastic — 1.6%
Berry Plastics Corp. Sec. Notes 6.00% due 10/15/2022		2,760,000		2,925,600
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC Senior Sec. Notes 5.13% due 07/15/2023*		3,080,000		3,195,500
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC Company Guar. Notes 7.00% due 07/15/2024*		1,195,000		1,280,144
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC Company Guar. Notes 8.25% due 02/15/2021		1,825,000		1,898,000
				9,299,244
Cosmetics & Toiletries — 1.0%
Avon International Operations, Inc. Senior Sec. Notes 7.88% due 08/15/2022*		2,750,000		2,839,595
Revlon Escrow Corp. Company Guar. Notes 6.25% due 08/01/2024*		2,885,000		3,000,400
				5,839,995
Data Processing/Management — 2.2%
First Data Corp. Senior Sec. Notes 5.38% due 08/15/2023*		3,580,000		3,714,250
First Data Corp. Sec. Notes 5.75% due 01/15/2024*		5,525,000		5,656,219

35

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(11)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Data Processing/Management (continued)
First Data Corp. Company Guar. Notes 7.00% due 12/01/2023*	$	3,245,000	$	3,399,137
				12,769,606
Decision Support Software — 0.4%
MSCI, Inc. Company Guar. Notes 5.25% due 11/15/2024*		1,685,000		1,790,313
MSCI, Inc. Company Guar. Notes 5.75% due 08/15/2025*		435,000		471,431
				2,261,744
Diagnostic Kits — 1.1%
Alere, Inc. Company Guar. Notes 6.38% due 07/01/2023*		3,700,000		3,783,250
Alere, Inc. Company Guar. Notes 6.50% due 06/15/2020		2,555,000		2,507,094
				6,290,344
Disposable Medical Products — 0.6%
Sterigenics-Nordion Holdings LLC Senior Notes 6.50% due 05/15/2023*		3,665,000		3,830,218
Distribution/Wholesale — 0.3%
American Builders & Contractors Supply Co., Inc. Senior Notes 5.63% due 04/15/2021*		335,000		347,563
American Builders & Contractors Supply Co., Inc. Senior Notes 5.75% due 12/15/2023*		790,000		835,425
HD Supply, Inc. Company Guar. Notes 5.75% due 04/15/2024*		430,000		457,950
				1,640,938
E-Commerce/Services — 0.0%
Match Group, Inc. Senior Notes 6.75% due 12/15/2022		150,000		159,563
Electric - Integrated — 0.1%
Texas Competitive Electric Holdings Co. LLC/TCEH Finance, Inc. Senior Sec. Notes 11.50% due 10/01/2020*†(2)(3)		1,680,000		546,000
Electronic Components - Semiconductors — 0.6%
Freescale Semiconductor, Inc. Senior Sec. Notes 6.00% due 01/15/2022*		2,125,000		2,239,750
Micron Technology, Inc. Senior Notes 5.50% due 02/01/2025		1,105,000		1,070,469
				3,310,219
Enterprise Software/Service — 0.8%
Infor Software Parent LLC/Infor Software Parent, Inc. Company Guar. Notes 7.13% due 05/01/2021*(4)		595,000		557,813

Security Description	Principal Amount(11)		Value (Note 2)
Enterprise Software/Service (continued)
Infor US, Inc. Senior Sec. Notes 5.75% due 08/15/2020*	$	165,000	$	174,159
Infor US, Inc. Company Guar. Notes 6.50% due 05/15/2022		4,000,000		4,055,000
				4,786,972
Finance - Consumer Loans — 1.2%
OneMain Financial Holdings LLC Company Guar. Notes 6.75% due 12/15/2019*		511,000		536,550
Springleaf Finance Corp. Company Guar. Notes 5.25% due 12/15/2019		970,000		991,825
Springleaf Finance Corp. Company Guar. Notes 7.75% due 10/01/2021#		1,845,000		1,937,250
Springleaf Finance Corp. Company Guar. Notes 8.25% due 12/15/2020		3,095,000		3,381,287
				6,846,912
Finance - Leasing Companies — 0.6%
International Lease Finance Corp. Senior Notes 5.88% due 08/15/2022		2,950,000		3,329,812
Finance - Other Services — 1.0%
FBM Finance, Inc. Senior Sec. Notes 8.25% due 08/15/2021*		1,080,000		1,131,300
Nationstar Mtg. LLC/Nationstar Capital Corp. Company Guar. Notes 6.50% due 08/01/2018		2,400,000		2,394,000
Nationstar Mtg. LLC/Nationstar Capital Corp. Company Guar. Notes 6.50% due 07/01/2021		955,000		909,638
Nationstar Mtg. LLC/Nationstar Capital Corp. Company Guar. Notes 6.50% due 06/01/2022(1)		1,425,000		1,328,812
				5,763,750
Financial Guarantee Insurance — 0.6%
MGIC Investment Corp. Senior Notes 5.75% due 08/15/2023		680,000		712,300
Radian Group, Inc. Senior Notes 7.00% due 03/15/2021		2,490,000		2,801,250
				3,513,550
Food - Canned — 0.8%
TreeHouse Foods, Inc. Company Guar. Notes 4.88% due 03/15/2022		3,530,000		3,662,375
TreeHouse Foods, Inc. Company Guar. Notes 6.00% due 02/15/2024*		1,230,000		1,337,625
				5,000,000

36

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(11)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Food - Flour & Grain — 0.9%
Post Holdings, Inc. Company Guar. Notes 5.00% due 08/15/2026*	$	4,640,000	$	4,628,400
Post Holdings, Inc. Company Guar. Notes 6.00% due 12/15/2022*#		740,000		785,362
				5,413,762
Food - Misc./Diversified — 0.1%
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp. Company Guar. Notes 5.88% due 01/15/2024*		565,000		608,788
Funeral Services & Related Items — 0.4%
Service Corp. International Senior Notes 5.38% due 01/15/2022		2,300,000		2,406,490
Gambling (Non-Hotel) — 0.2%
Pinnacle Entertainment, Inc. Senior Notes 5.63% due 05/01/2024*#		930,000		948,600
Hazardous Waste Disposal — 0.2%
Clean Harbors, Inc. Company Guar. Notes 5.13% due 06/01/2021		1,320,000		1,356,300
Hotels/Motels — 0.3%
FelCor Lodging LP Company Guar. Notes 6.00% due 06/01/2025		1,830,000		1,889,475
Insurance - Life/Health — 0.1%
CNO Financial Group, Inc. Senior Notes 5.25% due 05/30/2025		794,000		788,045
Internet Connectivity Services — 0.8%
Zayo Group LLC/Zayo Capital, Inc. Company Guar. Notes 6.00% due 04/01/2023		3,765,000		3,915,600
Zayo Group LLC/Zayo Capital, Inc. Company Guar. Notes 6.38% due 05/15/2025		985,000		1,039,382
				4,954,982
Internet Content - Entertainment — 0.8%
Netflix, Inc. Senior Notes 5.88% due 02/15/2025		4,465,000		4,844,525
Machinery - General Industrial — 0.1%
Gardner Denver, Inc. Senior Notes 6.88% due 08/15/2021*		795,000		733,388
Machinery - Material Handling — 0.5%
Cloud Crane LLC Sec. Notes 10.13% due 08/01/2024*		2,645,000		2,744,187
Medical Labs & Testing Services — 0.1%
inVentiv Health, Inc. Senior Sec. Notes 9.00% due 01/15/2018*		470,000		486,450

Security Description	Principal Amount(11)		Value (Note 2)
Medical - Drugs — 0.9%
PRA Holdings, Inc. Senior Notes 9.50% due 10/01/2023*(1)	$	2,104,000	$	2,340,700
Quintiles Transnational Corp. Company Guar. Notes 4.88% due 05/15/2023*		2,750,000		2,860,000
				5,200,700
Medical - HMO — 0.1%
MPH Acquisition Holdings LLC Senior Notes 7.13% due 06/01/2024*		540,000		580,500
Medical - Hospitals — 6.4%
CHS/Community Health Systems, Inc. Senior Sec. Notes 5.13% due 08/15/2018#		200,000		202,500
CHS/Community Health Systems, Inc. Company Guar. Notes 6.88% due 02/01/2022		9,195,000		7,631,850
CHS/Community Health Systems, Inc. Company Guar. Notes 7.13% due 07/15/2020		2,010,000		1,797,704
HCA Holdings, Inc. Senior Notes 6.25% due 02/15/2021		5,000,000		5,412,500
HCA, Inc. Senior Sec. Notes 4.50% due 02/15/2027		2,655,000		2,678,231
HCA, Inc. Senior Sec. Notes 5.25% due 06/15/2026		545,000		582,469
HCA, Inc. Company Guar. Notes 5.38% due 02/01/2025		690,000		710,700
HCA, Inc. Senior Sec. Notes 5.88% due 03/15/2022		2,150,000		2,365,000
HCA, Inc. Senior Sec. Notes 6.50% due 02/15/2020		1,275,000		1,408,875
HCA, Inc. Company Guar. Notes 7.50% due 11/15/2095(1)		1,820,000		1,838,200
LifePoint Health, Inc. Company Guar. Notes 5.88% due 12/01/2023		2,130,000		2,241,825
Tenet Healthcare Corp. Senior Sec. Notes 4.75% due 06/01/2020		2,365,000		2,424,125
Tenet Healthcare Corp. Senior Notes 5.00% due 03/01/2019		4,245,000		4,122,956
Tenet Healthcare Corp. Senior Notes 6.75% due 06/15/2023		505,000		480,381
Tenet Healthcare Corp. Senior Notes 8.13% due 04/01/2022		3,670,000		3,715,875
				37,613,191
Medical - Outpatient/Home Medical — 0.4%
Amsurg Corp. Company Guar. Notes 5.63% due 07/15/2022		2,470,000		2,550,275

37

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(11)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Medical - Wholesale Drug Distribution — 0.3%
Vizient, Inc. Senior Notes 10.38% due 03/01/2024*	$	1,325,000	$	1,503,875
Metal Processors & Fabrication — 0.4%
Novelis Corp. Company Guar. Notes 6.25% due 08/15/2024*		1,995,000		2,079,788
Metal - Aluminum — 0.3%
Kaiser Aluminum Corp. Company Guar. Notes 5.88% due 05/15/2024*		1,940,000		2,056,400
Mining — 0.0%
Renco Metals, Inc. Escrow Notes 11.50% due 07/01/2003†(1)(6)		210,000		6,300
Music — 0.1%
WMG Acquisition Corp. Senior Sec. Notes 5.00% due 08/01/2023*		555,000		570,263
Office Automation & Equipment — 0.9%
CDW LLC/CDW Finance Corp. Company Guar. Notes 5.00% due 09/01/2023		1,410,000		1,461,113
CDW LLC/CDW Finance Corp. Company Guar. Notes 6.00% due 08/15/2022		3,870,000		4,155,412
				5,616,525
Oil & Gas Drilling — 0.2%
Rowan Cos., Inc. Company Guar. Notes 5.85% due 01/15/2044		1,850,000		1,314,240
Oil Companies - Exploration & Production — 9.1%
Anadarko Petroleum Corp. Senior Notes 4.50% due 07/15/2044		1,580,000		1,440,429
Anadarko Petroleum Corp. Senior Notes 4.85% due 03/15/2021		195,000		207,588
Anadarko Petroleum Corp. Senior Notes 5.55% due 03/15/2026#		135,000		149,300
Anadarko Petroleum Corp. Senior Notes 6.60% due 03/15/2046		220,000		261,919
Antero Resources Corp. Company Guar. Notes 5.38% due 11/01/2021		1,315,000		1,316,644
Antero Resources Corp. Company Guar. Notes 5.63% due 06/01/2023		1,725,000		1,729,312
Antero Resources Corp. Company Guar. Notes 6.00% due 12/01/2020		1,390,000		1,423,012
Bonanza Creek Energy, Inc. Company Guar. Notes 6.75% due 04/15/2021		2,920,000		1,328,600
California Resources Corp. Sec. Notes 8.00% due 12/15/2022*		6,845,000		4,620,375

Security Description	Principal Amount(11)		Value (Note 2)
Oil Companies - Exploration & Production (continued)
Concho Resources, Inc. Company Guar. Notes 5.50% due 10/01/2022	$	2,780,000	$	2,877,300
Concho Resources, Inc. Company Guar. Notes 5.50% due 04/01/2023		580,000		598,850
Continental Resources, Inc. Company Guar. Notes 3.80% due 06/01/2024		665,000		600,163
Continental Resources, Inc. Company Guar. Notes 4.50% due 04/15/2023		415,000		391,138
Continental Resources, Inc. Company Guar. Notes 4.90% due 06/01/2044		3,795,000		3,168,825
Continental Resources, Inc. Company Guar. Notes 5.00% due 09/15/2022#		1,425,000		1,378,688
Denbury Resources, Inc. Sec. Notes 9.00% due 05/15/2021*		3,760,000		3,863,400
Diamondback Energy, Inc. Company Guar. Notes 7.63% due 10/01/2021#		3,275,000		3,473,547
Energen Corp. Senior Notes 4.63% due 09/01/2021		2,170,000		2,148,300
Laredo Petroleum, Inc. Company Guar. Notes 5.63% due 01/15/2022#		1,765,000		1,650,275
Laredo Petroleum, Inc. Company Guar. Notes 6.25% due 03/15/2023#		1,380,000		1,314,450
Laredo Petroleum, Inc. Company Guar. Notes 7.38% due 05/01/2022#		1,135,000		1,146,350
Matador Resources Co. Company Guar. Notes 6.88% due 04/15/2023		1,775,000		1,832,687
QEP Resources, Inc. Senior Notes 5.25% due 05/01/2023#		3,756,000		3,680,880
QEP Resources, Inc. Senior Notes 5.38% due 10/01/2022		206,000		203,940
QEP Resources, Inc. Senior Notes 6.80% due 03/01/2020		245,000		249,900
Rice Energy, Inc. Company Guar. Notes 6.25% due 05/01/2022		1,360,000		1,394,000
Rice Energy, Inc. Company Guar. Notes 7.25% due 05/01/2023		555,000		579,975
RSP Permian, Inc. Company Guar. Notes 6.63% due 10/01/2022		1,460,000		1,518,400
SM Energy Co. Senior Notes 5.00% due 01/15/2024#		2,640,000		2,412,300
SM Energy Co. Senior Notes 5.63% due 06/01/2025#		25,000		23,375
SM Energy Co. Senior Notes 6.13% due 11/15/2022#		365,000		354,963

38

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(11)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Oil Companies - Exploration & Production (continued)
SM Energy Co. Senior Notes 6.50% due 11/15/2021#	$	170,000	$	168,300
WPX Energy, Inc. Senior Notes 5.25% due 09/15/2024#		2,240,000		2,066,400
WPX Energy, Inc. Senior Notes 6.00% due 01/15/2022#		3,110,000		3,024,475
WPX Energy, Inc. Senior Notes 8.25% due 08/01/2023#		970,000		1,008,800
				53,606,860
Physicians Practice Management — 0.5%
Envision Healthcare Corp. Company Guar. Notes 5.13% due 07/01/2022*		1,680,000		1,696,800
MEDNAX, Inc. Company Guar. Notes 5.25% due 12/01/2023*		1,330,000		1,399,825
				3,096,625
Pipelines — 1.9%
Blue Racer Midstream LLC/Blue Racer Finance Corp. Company Guar. Notes 6.13% due 11/15/2022*(1)		3,780,000		3,638,250
Energy Transfer Equity LP Senior Sec. Notes 5.50% due 06/01/2027		4,565,000		4,576,412
Energy Transfer Equity LP Senior Sec. Notes 7.50% due 10/15/2020		1,350,000		1,478,250
Targa Resources Partners Company Guar. Notes 6.75% due 03/15/2024*		1,650,000		1,753,125
				11,446,037
Printing - Commercial — 0.5%
Quad/Graphics, Inc. Company Guar. Notes 7.00% due 05/01/2022		2,950,000		2,868,875
Racetracks — 0.4%
GLP Capital LP / GLP Financing II, Inc. Company Guar. Notes 4.38% due 04/15/2021#		120,000		126,634
GLP Capital LP/GLP Financing II, Inc. Company Guar. Notes 5.38% due 04/15/2026		2,030,000		2,217,775
				2,344,409
Radio — 0.2%
Sirius XM Radio, Inc. Company Guar. Notes 4.63% due 05/15/2023*		1,060,000		1,071,925
Real Estate Investment Trusts — 0.3%
Equinix, Inc. Senior Notes 5.88% due 01/15/2026		1,420,000		1,546,905
Retail - Apparel/Shoe — 0.8%
Chinos Intermediate Holdings, Inc. Senior Notes 8.50% due 05/01/2019*(1)(5)		1,615,875		630,191

Security Description	Principal Amount(11)		Value (Note 2)
Retail - Apparel/Shoe (continued)
L Brands, Inc. Company Guar. Notes 6.88% due 11/01/2035	$	2,955,000	$	3,228,337
L Brands, Inc. Senior Notes 6.95% due 03/01/2033#		651,000		688,433
				4,546,961
Retail - Arts & Crafts — 0.5%
Michaels Stores, Inc. Company Guar. Notes 5.88% due 12/15/2020*#		2,600,000		2,694,250
Retail - Leisure Products — 0.4%
Party City Holdings, Inc. Company Guar. Notes 6.13% due 08/15/2023*#		2,385,000		2,534,063
Retail - Restaurants — 0.5%
CEC Entertainment, Inc. Company Guar. Notes 8.00% due 02/15/2022		3,065,000		3,065,000
Rubber/Plastic Products — 0.0%
Venture Holdings Co. LLC Company Guar. Notes 11.00% due 06/01/2007†(1)(2)(6)(7)		50,000		0
Security Services — 0.3%
APX Group, Inc. Senior Sec. Notes 7.88% due 12/01/2022		1,575,000		1,657,688
Semiconductor Equipment — 0.6%
Entegris, Inc. Company Guar. Notes 6.00% due 04/01/2022*		3,410,000		3,546,400
Soap & Cleaning Preparation — 0.4%
Sun Products Corp. Senior Notes 7.75% due 03/15/2021*		2,545,000		2,643,619
Steel - Producers — 1.8%
AK Steel Corp. Company Guar. Notes 7.63% due 05/15/2020#		1,010,000		984,750
AK Steel Corp. Company Guar. Notes 7.63% due 10/01/2021#		1,590,000		1,528,388
AK Steel Corp. Company Guar. Notes 8.38% due 04/01/2022#		1,360,000		1,346,400
Steel Dynamics, Inc. Company Guar. Notes 5.13% due 10/01/2021		915,000		951,600
Steel Dynamics, Inc. Company Guar. Notes 5.50% due 10/01/2024		1,005,000		1,060,275
United States Steel Corp. Senior Notes 6.88% due 04/01/2021		421,000		415,211
United States Steel Corp. Senior Notes 7.38% due 04/01/2020#		1,081,000		1,066,812
United States Steel Corp. Senior Notes 7.50% due 03/15/2022#		340,000		330,438

39

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(11)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Steel - Producers (continued)
United States Steel Corp. Senior Sec. Notes 8.38% due 07/01/2021*	$	2,505,000	$	2,724,187
				10,408,061
Steel - Specialty — 0.2%
Signode Industrial Group Lux SA/Signode Industrial Group US, Inc. Company Guar. Notes 6.38% due 05/01/2022*		975,000		994,500
Telecommunication Equipment — 1.1%
Alcatel-Lucent USA, Inc. Senior Notes 6.45% due 03/15/2029		5,385,000		5,856,187
Alcatel-Lucent USA, Inc. Senior Notes 6.50% due 01/15/2028		490,000		526,750
				6,382,937
Telephone - Integrated — 2.3%
Frontier Communications Corp. Senior Notes 10.50% due 09/15/2022		1,235,000		1,343,834
Frontier Communications Corp. Senior Notes 11.00% due 09/15/2025		3,030,000		3,272,400
Level 3 Financing, Inc. Company Guar. Notes 5.13% due 05/01/2023		455,000		472,631
Level 3 Financing, Inc. Company Guar. Notes 5.25% due 03/15/2026*		5,110,000		5,295,238
Level 3 Financing, Inc. Company Guar. Notes 5.38% due 08/15/2022		2,175,000		2,273,201
Level 3 Financing, Inc. Company Guar. Notes 5.38% due 01/15/2024		950,000		996,313
				13,653,617
Television — 2.8%
Gannett Co., Inc. Company Guar. Notes 5.50% due 09/15/2024*		705,000		743,775
Gray Television, Inc. Company Guar. Notes 5.88% due 07/15/2026*		290,000		302,325
Gray Television, Inc. Company Guar. Notes 7.50% due 10/01/2020		815,000		847,600
Sinclair Television Group, Inc. Company Guar. Notes 5.13% due 02/15/2027*		625,000		629,687
Sinclair Television Group, Inc. Senior Notes 5.88% due 03/15/2026*		1,585,000		1,672,175
TEGNA, Inc. Company Guar. Notes 4.88% due 09/15/2021*#		1,540,000		1,597,750
TEGNA, Inc. Company Guar. Notes 5.13% due 10/15/2019		3,685,000		3,790,944
TEGNA, Inc. Company Guar. Notes 6.38% due 10/15/2023		1,360,000		1,468,800

Security Description	Principal Amount(11)		Value (Note 2)
Television (continued)
Tribune Media Co. Company Guar. Notes 5.88% due 07/15/2022	$	5,290,000	$	5,409,024
				16,462,080
Total U.S. Corporate Bonds & Notes
(cost $410,948,424)				422,708,667
FOREIGN CORPORATE BONDS & NOTES — 14.0%
Building Products - Cement — 0.6%
Cemex SAB de CV Senior Sec. Notes 5.70% due 01/11/2025*		1,505,000		1,553,912
Cemex SAB de CV Senior Sec. Notes 6.13% due 05/05/2025*		1,135,000		1,195,382
Cemex SAB de CV Senior Sec. Notes 7.75% due 04/16/2026*		710,000		804,075
				3,553,369
Cable/Satellite TV — 1.6%
Altice Financing SA Senior Sec. Notes 7.50% due 05/15/2026*		3,755,000		3,952,137
Numericable-SFR SA Senior Sec. Notes 7.38% due 05/01/2026*		2,705,000		2,792,913
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH Senior Sec. Notes 5.50% due 01/15/2023*		2,410,000		2,536,525
				9,281,575
Containers - Metal/Glass — 0.9%
Ardagh Finance Holdings SA Senior Notes 8.63% due 06/15/2019*(5)		1,167,025		1,216,624
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. Company Guar. Notes 6.00% due 06/30/2021*#		3,375,000		3,476,250
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. Company Guar. Notes 6.75% due 01/31/2021*#		450,000		466,312
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. Company Guar. Notes 7.25% due 05/15/2024*		295,000		313,806
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc. Senior Notes 7.00% due 11/15/2020*(1)		140,294		140,119
				5,613,111
Diversified Manufacturing Operations — 0.7%
Bombardier, Inc. Senior Notes 6.13% due 01/15/2023*		4,485,000		4,215,900
Diversified Minerals — 0.9%
Anglo American Capital PLC Company Guar. Notes 4.13% due 04/15/2021*		590,000		584,100

40

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(11)		Value (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Diversified Minerals (continued)
Anglo American Capital PLC Company Guar. Notes 4.13% due 09/27/2022*#	$	745,000	$	728,238
Anglo American Capital PLC Company Guar. Notes 4.88% due 05/14/2025*#		490,000		491,225
Anglo American Capital PLC Company Guar. Notes 9.38% due 04/08/2019*		890,000		1,021,275
Teck Resources, Ltd. Company Guar. Notes 8.00% due 06/01/2021*		785,000		847,309
Teck Resources, Ltd. Company Guar. Notes 8.50% due 06/01/2024*#		1,630,000		1,833,750
				5,505,897
Finance - Leasing Companies — 1.0%
AerCap Ireland Capital, Ltd./AerCap Global Aviation Trust Company Guar. Notes 4.50% due 05/15/2021		5,720,000		6,034,600
Forestry — 0.2%
Tembec Industries, Inc. Senior Sec. Notes 9.00% due 12/15/2019*		1,515,000		1,181,700
Gold Mining — 0.0%
New Gold, Inc. Company Guar. Notes 6.25% due 11/15/2022*		160,000		165,200
Medical - Drugs — 3.2%
Endo, Ltd./Endo Finance LLC/Endo Finco, Inc. Company Guar. Notes 6.00% due 07/15/2023*		1,955,000		1,774,162
Endo, Ltd./Endo Finance LLC/Endo Finco, Inc. Company Guar. Notes 6.50% due 02/01/2025*		5,540,000		4,916,750
Valeant Pharmaceuticals International, Inc. Company Guar. Notes 5.50% due 03/01/2023*		1,910,000		1,666,475
Valeant Pharmaceuticals International, Inc. Company Guar. Notes 5.88% due 05/15/2023*		11,000,000		9,680,000
Valeant Pharmaceuticals International, Inc. Company Guar. Notes 6.13% due 04/15/2025*		770,000		676,638
				18,714,025
Metal - Aluminum — 0.5%
Constellium NV Senior Sec. Notes 7.88% due 04/01/2021*#		2,630,000		2,846,975
Multimedia — 0.3%
Quebecor Media, Inc. Senior Notes 5.75% due 01/15/2023		1,415,000		1,487,519
Oil Companies - Exploration & Production — 1.3%
MEG Energy Corp. Company Guar. Notes 6.38% due 01/30/2023*		2,340,000		1,825,200

Security Description	Principal Amount(11)			Value (Note 2)
Oil Companies - Exploration & Production (continued)
MEG Energy Corp. Company Guar. Notes 7.00% due 03/31/2024*	$	1,735,000		$	1,396,675
Tullow Oil PLC Company Guar. Notes 6.00% due 11/01/2020*#		1,220,000			1,064,450
Tullow Oil PLC Company Guar. Notes 6.25% due 04/15/2022*		4,235,000			3,642,100
					7,928,425
Semiconductor Components - Integrated Circuits — 0.5%
NXP BV/NXP Funding LLC Senior Notes 3.88% due 09/01/2022*		2,790,000			2,835,338
Semiconductor Equipment — 0.5%
Sensata Technologies BV Company Guar. Notes 5.00% due 10/01/2025*		1,435,000			1,485,225
Sensata Technologies BV Company Guar. Notes 5.63% due 11/01/2024*		1,430,000			1,515,800
					3,001,025
Special Purpose Entity — 0.0%
Hellas Telecommunications Luxembourg II SCA FRS Sub. Notes 8.46% due 01/15/2015†*(1)(2)(6)(7)		925,000			0
Steel - Producers — 0.5%
ArcelorMittal Senior Notes 6.50% due 03/01/2021#		1,420,000			1,540,700
ArcelorMittal Senior Notes 7.25% due 02/25/2022#		1,060,000			1,192,500
					2,733,200
Telecom Services — 0.8%
Wind Acquisition Finance SA Senior Sec. Notes 4.00% due 07/15/2020*	EUR	2,245,000	��		2,541,748
Wind Acquisition Finance SA Senior Sec. Notes 4.75% due 07/15/2020*		1,940,000			1,964,250
Wind Acquisition Finance SA Senior Sec. Notes 6.50% due 04/30/2020*		220,000			230,314
					4,736,312
Television — 0.5%
Videotron, Ltd. Company Guar. Notes 5.00% due 07/15/2022		2,720,000			2,852,600
Total Foreign Corporate Bonds & Notes (cost $83,751,811)					82,686,771
LOANS(1)(8)(9)(10) — 1.2%
Building - Residential/Commercial — 0.0%
TOUSA, Inc. Escrow Loans 12.25% due 08/15/2011†(6)		2,037,810			0

41

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(11)		Value (Note 2)
LOANS (continued)
Cable/Satellite TV — 0.2%
Virgin Media Investment Holdings, Ltd. FRS BTL - F 3.65% due 06/30/2023	$	1,230,000	$	1,227,803
E-Commerce/Products — 0.1%
Lands’ End, Inc. FRS BTL - B 4.25% due 04/04/2021		1,015,909		808,917
Electric - Integrated — 0.2%
Texas Competitive Electric Holdings Co. LLC FRS BTL 4.97% due 10/10/2017†(2)(3)		3,873,748		1,247,668
Electronic Components - Semiconductors — 0.1%
NXP BV FRS BTL - B 3.75% due 12/07/2020		346,580		348,530
Insurance - Property/Casualty — 0.1%
Asurion LLC FRS 2nd Lien 8.50% due 03/03/2021		635,000		632,619
Machinery - General Industrial — 0.3%
Gardner Denver, Inc. FRS BTL 4.25% due 07/30/2020		1,828,300		1,730,029
Medical - Wholesale Drug Distribution — 0.2%
Vizient, Inc. FRS First Lien 6.25% due 02/13/2023		892,763		901,318
Total Loans
(cost $9,747,001)				6,896,884
COMMON STOCKS†(1)(6) — 0.0%
Multimedia — 0.0%
Haights Cross Communication, Inc. (cost $82,159)		10,439		0
MEMBERSHIP INTEREST CERTIFICATES†(1)(12) — 0.0%
Casino Services — 0.0%
Herbst Gaming, Inc. (cost $232,700)		23,439		146,494
PREFERRED SECURITIES/CAPITAL SECURITIES — 4.1%
Banks - Commercial — 1.2%
Banco Bilbao Vizcaya Argentaria SA VRS 7.00% due 02/19/2019(13)	EUR	3,200,000		3,373,121
Banco Bilbao Vizcaya Argentaria SA VRS 8.88% due 04/14/2021(13)	EUR	1,000,000		1,179,868
Banco Bilbao Vizcaya Argentaria SA VRS 9.00% due 05/09/2018(13)		1,000,000		1,045,000
Intesa Sanpaolo SpA VRS 7.70% due 09/17/2025*(13)		1,435,000		1,330,977
				6,928,966
Diversified Banking Institutions — 2.7%
Barclays PLC VRS 8.00% due 12/15/2020(13)	EUR	1,000,000		1,144,731
Barclays PLC VRS 8.25% due 12/15/2018(13)		2,595,000		2,658,204
BNP Paribas SA VRS 7.63% due 03/30/2021*(13)		1,615,000		1,698,173
Credit Agricole SA VRS 7.88% due 01/23/2024*#(13)		775,000		793,406

Security Description	Shares/ Principal Amount(11)			Value (Note 2)
Diversified Banking Institutions (continued)
Credit Agricole SA VRS 8.13% due 12/23/2025*(13)	$	2,520,000		$	2,704,313
Credit Suisse Group AG VRS 6.25% due 12/18/2024(13)		3,675,000			3,596,869
Royal Bank of Scotland Group PLC FRS 6.99% due 10/05/2017*(13)		1,690,000			1,888,575
Royal Bank of Scotland Group PLC FRS Series U 7.64% due 09/30/2017(13)		500,000			491,875
Societe Generale SA FRS 8.25% due 11/29/2018(13)		875,000			900,156
					15,876,302
Multimedia — 0.2%
NBCUniversal Enterprise, Inc. 5.25% due 03/19/2021*(13)		1,260,000			1,335,600
Total Preferred Securities/Capital Securities
(cost $24,460,947)					24,140,868
WARRANTS†(1)(6)(12) — 0.1%
Television — 0.1%
ION Media Networks, Inc. Expires 12/18/2016 (strike price $0.01)		310			369,254
ION Media Networks, Inc. Expires 12/18/2016 (strike price $0.01)		306			364,490
Total Warrants
(cost $0)					733,744
Total Long-Term Investment Securities
(cost $532,370,906)					539,614,659
SHORT-TERM INVESTMENT SECURITIES — 8.2%
Registered Investment Companies — 8.2%
State Street Navigator Securities Lending Prime Portfolio 0.43%(14)(15) (cost $48,280,053)		48,280,053			48,280,053
REPURCHASE AGREEMENTS — 6.8%
Agreement with State Street Bank & Trust Co., bearing interest at 0.01%, dated 08/31/2016, to be repurchased 09/01/2016 in the amount of $40,493,011 collateralized by $37,645,000 of United States Treasury Notes, bearing interest at 3.13% due 05/15/2021 and having an approximate value of $41,307,708 (cost $40,493,000)	$	40,493,000			40,493,000
TOTAL INVESTMENTS
(cost $621,143,959)(16)		106.4	%		628,387,712
Liabilities in excess of other assets		(6.4	)		(37,709,165	)
NET ASSETS		100.0	%	$	590,678,547

* 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 August 31, 2016, the aggregate value of these securities was $236,755,765 representing 40.1% 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

42

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

(1) Illiquid security. At August 31, 2016, the aggregate value of these securities was $18,027,107 representing 3.1% of net assets.

(2) Company has filed for bankruptcy protection.

(3) Security in default of interest.

(4) 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.

(5) 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 the form of additional securities at the coupon rate listed.

(6) Fair valued security. Securities are classified as Level 3 based on the securities valuation inputs (see Note 2).

(7) Security in default of interest and principal at maturity.

(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) The Fund invests in senior loans which generally pay interest at rates which are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the London Inter-Bank Offer Rate (“LIBOR”) or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. Senior loans are generally considered to be restrictive in that the Fund is ordinarily contractually obligated to receive approval from the Agent Bank and/or borrower prior to the disposition of a senior loan.

(10) All loans in the Fund were purchased through assignment agreements unless otherwise indicated.

(11) Denominated in United States dollars unless otherwise indicated.

(12) 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 August 31, 2016, the Fund held the following restricted securities:

Description	Acquisition Date		Shares/ Principal Amount		Acquisition Cost		Value		Value Per Share		% of Net Assets
Membership Interest Certificate
Herbst Gaming, Inc.		03/26/2008		23,439	$	232,701	$	146,494	$	6.25		0.02	%
Warrants
ION Media Networks, Inc. Expires 12/18/2016 (Strike price $0.01)		11/11/2010		310		–		369,254		1191.14		0.06
ION Media Networks, Inc. Expires 12/18/2016 (Strike price $0.01)		03/01/2011		306		–		364,490		1191.14		0.06
							$	880,238				0.14	%

(13) Perpetual maturity — maturity date reflects the next call date.

(14) At August 31, 2016, the Fund had loaned securities with a total value of $47,253,981. This was secured by collateral of $48,280,053, which was received in cash and subsequently invested in short-term investments currently valued at $48,280,053 as reported in the Portfolio of Investments.

(15) The rate shown is the 7-day yield as of August 31, 2016.

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

BTL—Bank Term Loan

EUR—Euro Dollar

FRS—Floating Rate Security

VRS—Variable Rate Security

The rates shown on FRS are the current interest rates at August 31, 2016 and unless noted otherwise, the dates shown are the original maturity dates.

Forward Foreign Currency Contracts

Counterparty

Contract to Deliver

In Exchange For

Delivery Date

Unrealized Appreciation

Unrealized Depreciation

Citibank N.A.

EUR

8,505,000

USD

9,594,499

09/30/2016

$

96,072

$

–

Centrally Cleared Credit Default Swaps on Credit Indicies — Sell Protection(1)
Reference Obligation	Fixed Deal Receive Rate			Termination Date		Counterparty	Implied Credit Spread at August 31, 2016(2)			Notional Amount(3)		Value at August 31, 2016(4)		Upfront Premiums Paid/ (Received)		Unrealized Appreciation/ (Depreciation)
Markit CDX North America High Yield Index		5.00	%		06/20/2021	Goldman Sachs Corp.		0.3927	%	$	19,030,000	$	846,730	$	267,875	$	578,855
Markit CDX North America High Yield Index		5.00	%		06/20/2021	Goldman Sachs Corp.		0.3927	%		8,175,000		363,743		383,419		(19,676	)
												$	1,210,473	$	651,294	$	559,179

(1) If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation.

(2) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.

(3) The maximum potential amount the Fund could be required to make as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

(4) The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement have been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

43

VALIC Company II High Yield Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

The following is a summary of the inputs used to value the Fund’s net assets as of August 31, 2016 (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:	$	—	$	2,301,231	$	—	$	2,301,231
U.S. Corporate Bonds & Notes:
Mining		—		—		6,300		6,300
Rubber/Plastic Products		—		—		0		0
Other Industries		—		422,702,367		—		422,702,367
Foreign Corporate Bonds & Notes:
Special Purpose Entity		—		—		0		0
Other Industries		—		82,686,771		—		82,686,771
Loans:
Building - Residential/Commercial		—		—		0		0
Other Industries		—		6,896,884		—		6,896,884
Common Stocks		—		—		0		0
Membership Interest Certificates		—		146,494		—		146,494
Preferred Securities/Capital Securities		—		24,140,868		—		24,140,868
Warrants		—		—		733,744		733,744
Short-Term Investment Securities		48,280,053		—		—		48,280,053
Repurchase Agreements		—		40,493,000		—		40,493,000
Total Investments at Value	$	48,280,053	$	579,367,615	$	740,044	$	628,387,712
Other Financial Instruments:+
Forward Foreign Currency Contracts	$	—	$	96,072	$	—	$	96,072
Centrally Cleared Credit Default Swaps on Credit Indicies - Sell Protection		—		578,855		—		578,855
Total Other Financial Instruments	$	—	$	674,927	$	—	$	674,927
LIABILITIES:
Other Financial Instruments:+
Centrally Cleared Credit Default Swaps on Credit Indicies - Sell Protection	$	—	$	19,676	$	—	$	19,676

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

+ Other financial instruments are derivative instruments, not reflected in the Portfolio of Investments, such as futures, forward, swap and written option contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.

At the beginning and end of the reporting period, Level 3 investments were not considered a material portion of the Fund.

See Notes to Financial Statements

44

VALIC Company II International Opportunities Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Registered Investment Companies	7.7	%
Auto/Truck Parts & Equipment — Original	4.2
E-Commerce/Services	2.9
Food — Misc./Diversified	2.4
Containers — Paper/Plastic	2.3
Distribution/Wholesale	2.2
Oil Companies — Exploration & Production	2.1
Investment Management/Advisor Services	2.1
Computer Services	2.0
Retail — Restaurants	1.7
Banks — Commercial	1.7
Gold Mining	1.7
Retail — Discount	1.6
Casino Hotels	1.6
Chemicals — Diversified	1.6
E-Commerce/Products	1.5
Casino Services	1.5
Beverages — Non-alcoholic	1.5
Fisheries	1.5
Commercial Services	1.5
Applications Software	1.4
Cosmetics & Toiletries	1.3
Enterprise Software/Service	1.3
Medical Products	1.3
Real Estate Operations & Development	1.3
Retail — Apparel/Shoe	1.3
Retail — Drug Store	1.2
Building & Construction Products — Misc.	1.2
Photo Equipment & Supplies	1.2
Building — Residential/Commercial	1.2
Repurchase Agreements	1.1
Machinery — General Industrial	1.1
Hotels/Motels	1.1
Food — Catering	1.1
Apparel Manufacturers	1.1
Human Resources	1.0
Chemicals — Specialty	1.0
Diversified Operations/Commercial Services	1.0
Electronic Measurement Instruments	1.0
Computers — Integrated Systems	0.9
Insurance — Property/Casualty	0.9
Beverages — Wine/Spirits	0.9
Retail — Home Furnishings	0.9
Computers — Periphery Equipment	0.9
Transactional Software	0.9
Funeral Services & Related Items	0.9
Medical — Drugs	0.9
Electronic Components — Misc.	0.8
Medical Labs & Testing Services	0.8
Building & Construction — Misc.	0.7
Electric — Integrated	0.7
Wireless Equipment	0.7
Building Products — Cement	0.7
Chemicals — Fibers	0.6
Building Products — Wood	0.6
Transport — Services	0.5
Retail — Convenience Store	0.5
Exchange — Traded Funds	0.5
Diversified Financial Services	0.5
Containers — Metal/Glass	0.5
Retail — Misc./Diversified	0.5
Steel — Producers	0.5
Medical — Biomedical/Gene	0.5
Insurance Brokers	0.5
Food — Wholesale/Distribution	0.5
Entertainment Software	0.5
Oil Refining & Marketing	0.5
Aerospace/Defense	0.5
Coatings/Paint	0.4

Transport — Marine		0.4
Real Estate Management/Services		0.4
Medical — Wholesale Drug Distribution		0.4
Leisure Products		0.4
Gambling (Non-Hotel)		0.4
Finance — Other Services		0.4
Wire & Cable Products	��	0.4
Cellular Telecom		0.4
Semiconductor Equipment		0.4
Gas — Distribution		0.4
Telecom Services		0.4
Internet Financial Services		0.4
Transport — Truck		0.4
Soap & Cleaning Preparation		0.4
Respiratory Products		0.4
Electric — Generation		0.4
Engineering/R&D Services		0.4
Rental Auto/Equipment		0.4
Airport Development/Maintenance		0.3
Oil — Field Services		0.3
Brewery		0.3
Food — Flour & Grain		0.3
Office Automation & Equipment		0.3
Theaters		0.3
Appliances		0.3
Telephone — Integrated		0.3
Satellite Telecom		0.3
Rubber/Plastic Products		0.3
Auto/Truck Parts & Equipment — Replacement		0.3
Diversified Manufacturing Operations		0.3
Machine Tools & Related Products		0.2
Electric Products — Misc.		0.2
Food — Retail		0.2
Electric — Transmission		0.2
Insurance — Life/Health		0.2
Tobacco		0.2
Machinery — Material Handling		0.2
Veterinary Products		0.2
Building — Maintenance & Services		0.2
Electronic Connectors		0.2
Explosives		0.2
Schools		0.2
Retail — Automobile		0.2
Telecommunication Equipment		0.2
Advertising Services		0.2
Electronic Components — Semiconductors		0.2
Precious Metals		0.2
Silver Mining		0.2
Airlines		0.2
Finance — Auto Loans		0.2
Female Health Care Products		0.2
Dental Supplies & Equipment		0.2
Food — Meat Products		0.2
Private Equity		0.2
Metal — Iron		0.2
Finance — Investment Banker/Broker		0.2
Computer Software		0.2
Real Estate Investment Trusts		0.2
Metal Processors & Fabrication		0.2
Internet Content — Information/News		0.2
Hazardous Waste Disposal		0.1
Finance — Credit Card		0.1
Diversified Minerals		0.1
Computers		0.1
Medical Instruments		0.1
Footwear & Related Apparel		0.1
Agricultural Operations		0.1
Television		0.1
Office Supplies & Forms		0.1

45

VALIC Company II International Opportunities Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited) — (continued)

Industry Allocation* (continued)

Power Converter/Supply Equipment	0.1
Petrochemicals	0.1
Retail — Sporting Goods	0.1
Consumer Products — Misc.	0.1
Retail — Building Products	0.1
Consulting Services	0.1
Aerospace/Defense — Equipment	0.1
Finance — Consumer Loans	0.1
Insurance — Multi — line	0.1
Industrial Gases	0.1
Auto — Cars/Light Trucks	0.1
Machinery — Pumps	0.1
Semiconductor Components — Integrated Circuits	0.1
Building — Heavy Construction	0.1
Paper & Related Products	0.1
Electronic Parts Distribution	0.1
Food — Confectionery	0.1
Bicycle Manufacturing	0.1
Instruments — Controls	0.1
	106.8	%

Country Allocation*

Japan	20.1	%
United Kingdom	15.9
United States	10.4
Canada	6.3
Australia	5.9
Germany	5.6
Switzerland	5.2
France	4.6
Italy	3.4
Bermuda	3.0
Cayman Islands	2.6
Taiwan	2.3
South Korea	1.8
Denmark	1.8
Ireland	1.6
Austria	1.2
Norway	1.2
Spain	1.2
Mexico	1.1
Finland	1.1
Singapore	1.0
Netherlands	1.0
Brazil	1.0
Sweden	0.9
Curacao	0.9
Indonesia	0.8
Luxembourg	0.6
Belgium	0.6
Faroe Islands	0.6
Thailand	0.6
Isle of Man	0.4
New Zealand	0.4
Hong Kong	0.3
South Africa	0.3
Jersey	0.3
Malaysia	0.2
Panama	0.2
Israel	0.1
Philippines	0.1
Turkey	0.1
Colombia	0.1
	106.8%

* Calculated as a percentage of net assets

46

VALIC Company II International Opportunities Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Shares		Value (Note 2)
COMMON STOCKS — 96.4%
Australia — 5.9%
Ansell, Ltd.		96,786	$	1,633,730
Aristocrat Leisure, Ltd.		783,616		8,892,795
AUB Group, Ltd.		217,055		1,725,892
Bellamy’s Australia, Ltd.		278,160		2,759,476
BlueScope Steel, Ltd.		459,715		3,002,386
Computershare, Ltd.		140,422		1,042,678
DuluxGroup, Ltd.		171,983		828,517
Iluka Resources, Ltd.		167,344		827,550
Orica, Ltd.		115,130		1,277,123
Reliance Worldwide Corp., Ltd.†		159,919		373,782
Star Entertainment Group, Ltd.		2,187,762		9,700,857
Super Retail Group, Ltd.#		92,903		768,034
Vocus Communications, Ltd.#		372,951		2,155,441
				34,988,261
Austria — 1.2%
BUWOG AG		103,966		2,703,235
Lenzing AG		31,590		3,742,177
Mayr-Melnhof Karton AG		8,324		937,322
				7,382,734
Belgium — 0.6%
Elia System Operator SA/NV		28,328		1,430,463
Orange Belgium SA†		100,887		2,349,719
				3,780,182
Bermuda — 3.0%
Cafe de Coral Holdings, Ltd.		400,000		1,399,927
China Resources Gas Group, Ltd.		686,000		2,299,180
Credicorp, Ltd.		7,578		1,187,321
Dairy Farm International Holdings, Ltd.#		202,500		1,451,925
Esprit Holdings, Ltd.†		399,650		353,410
First Pacific Co., Ltd.		1,154,250		864,473
Global Brands Group Holding, Ltd.†		4,858,000		450,885
Hiscox, Ltd.		223,990		3,070,741
Man Wah Holdings, Ltd.		6,166,206		4,188,939
Midland Holdings, Ltd.†		2,786,000		858,330
Pacific Basin Shipping, Ltd.†		1,143,049		126,718
Peace Mark Holdings, Ltd.†(4)(5)		686,000		0
VTech Holdings, Ltd.		107,949		1,205,069
XL Group, Ltd.		13,857		474,325
				17,931,243
Brazil — 1.0%
BR Insurance Corretora de Seguros SA†		4,510		26,466
BRF SA		38,000		633,686
CETIP SA - Mercados Organizados		39,800		538,604
Estacio Participacoes SA		59,822		307,150
GAEC Educacao SA		84,157		367,203
Kroton Educacional SA		124,888		533,710
Linx SA		83,200		445,733
Localiza Rent a Car SA		34,278		427,891
Odontoprev SA		158,514		625,868
Qualicorp SA		77,437		543,872
Suzano Papel e Celulose SA, Class A (preference shares)		119,800		378,410
TOTVS SA		37,995		352,982
Ultrapar Participacoes SA		26,200		603,885
				5,785,460
Canada — 6.3%
Agnico Eagle Mines, Ltd.#		33,700		1,708,128
Alimentation Couche - Tard, Inc., Class B#		28,383		1,463,735
Birchcliff Energy, Ltd.†		473,225		3,276,562
Descartes Systems Group, Inc.†		182,697		3,895,233
Detour Gold Corp.†		199,121		4,494,419

Security Description	Shares		Value (Note 2)
Canada (continued)
Dollarama, Inc.		65,149	$	4,813,892
Norbord, Inc.		140,900		3,384,436
Pan American Silver Corp.		64,943		1,132,566
Parex Resources, Inc.†		316,700		3,748,043
Raging River Exploration, Inc.†		532,221		4,314,099
Silver Standard Resources, Inc.†#		99,630		1,169,213
Stantec, Inc.		17,666		421,241
TORC Oil & Gas, Ltd.#		63,982		376,652
Torex Gold Resources, Inc.†		158,400		3,628,440
				37,826,659
Cayman Islands — 2.6%
51job, Inc. ADR†#		36,667		1,222,111
Ajisen China Holdings, Ltd.		799,000		316,199
ASM Pacific Technology, Ltd.		159,300		1,240,304
Hengan International Group Co., Ltd.		130,500		1,104,386
Shenguan Holdings Group, Ltd.		854,000		61,648
Stella International Holdings, Ltd.#		458,500		731,704
Sunny Optical Technology Group Co., Ltd.		1,344,000		7,181,236
Tingyi Cayman Islands Holding Corp.#		778,000		720,078
Tongda Group Holdings, Ltd.#		11,502,467		2,387,219
Want Want China Holdings, Ltd.#		539,000		355,047
				15,319,932
Colombia — 0.1%
Bancolombia SA ADR		9,814		385,396
Denmark — 1.8%
Carlsberg A/S, Class B		9,602		900,201
Chr. Hansen Holding A/S		5,908		358,275
Dfds A/S		49,454		2,607,641
DSV A/S		37,494		1,859,555
Jyske Bank A/S		38,879		1,866,476
Sydbank A/S		48,789		1,545,886
TDC A/S		173,921		961,376
William Demant Holding A/S†		19,692		411,437
				10,510,847
Faroe Islands — 0.6%
Bakkafrost P/F		99,731		3,584,583
Finland — 1.1%
Huhtamaki Oyj		145,527		6,330,797
Tikkurila Oyj		9,523		203,313
				6,534,110
France — 4.6%
Capgemini SA		4,221		411,224
Christian Dior SE		12,496		2,160,493
Edenred		13,235		288,173
Elior Participations SCA*		257,324		5,901,380
Eutelsat Communications SA		34,874		677,836
Havas SA		143,460		1,199,049
Legrand SA		15,526		930,176
Neopost SA#		10,952		289,285
Remy Cointreau SA		52,386		4,571,290
SEB SA		2,561		340,800
Societe BIC SA		3,230		471,440
Sodexo SA		24,266		2,810,961
Technip SA		14,223		840,372
Teleperformance		51,013		5,287,946
Virbac SA†#		6,421		1,322,162
				27,502,587
Germany — 5.4%
Amadeus Fire AG		11,985		875,648
AURELIUS Equity Opportunities SE & Co. KGaA#		17,588		993,483

47

VALIC Company II International Opportunities Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Germany (continued)
Beiersdorf AG		15,950	$	1,483,983
Brenntag AG		33,011		1,796,552
CTS Eventim AG & Co. KGaA		17,671		613,213
Deutsche Wohnen AG (BR)		48,314		1,816,156
ElringKlinger AG#		17,648		303,845
FUCHS PETROLUB SE (preference shares)		39,431		1,793,640
GEA Group AG		47,372		2,542,450
Gerresheimer AG		36,771		3,053,658
Henkel AG & Co. KGaA (preference shares)		17,258		2,264,814
Infineon Technologies AG		69,749		1,174,414
LEG Immobilien AG		15,627		1,525,399
MTU Aero Engines AG		10,168		1,033,927
Nemetschek SE		54,274		3,230,411
Pfeiffer Vacuum Technology AG		4,560		430,365
Sixt SE		16,940		960,848
SLM Solutions Group AG†		53,706		1,630,052
Symrise AG		57,745		4,251,814
TAG Immobilien AG		15,494		222,862
				31,997,534
Hong Kong — 0.3%
China Resources Beer Holdings Co., Ltd.		140,000		323,040
Techtronic Industries Co., Ltd.		447,000		1,812,190
				2,135,230
Indonesia — 0.8%
Astra Agro Lestari Tbk PT†		563,000		696,057
PT Semen Indonesia Persero Tbk		279,500		208,598
Waskita Karya Persero Tbk PT		16,863,900		3,546,949
XL Axiata Tbk PT†		627,000		134,239
				4,585,843
Ireland — 1.6%
Dalata Hotel Group PLC†		592,317		2,874,045
DCC PLC		29,386		2,674,163
Kerry Group PLC, Class A		14,984		1,273,265
Paddy Power Betfair PLC		21,301		2,562,180
				9,383,653
Isle of Man — 0.4%
Paysafe Group PLC†		397,924		2,281,904
Israel — 0.1%
Bezeq The Israeli Telecommunication Corp., Ltd.		396,186		795,204
Italy — 3.4%
A2A SpA		1,185,350		1,572,095
Amplifon SpA#		247,472		2,601,702
Brembo SpA		88,008		5,139,123
Buzzi Unicem SpA#		155,389		3,303,645
Cerved Information Solutions SpA		259,080		2,080,734
Davide Campari - Milano SpA		81,027		881,672
Infrastrutture Wireless Italiane SpA*		90,529		442,295
Iren SpA		1,513,597		2,490,305
Moncler SpA		80,257		1,331,202
Unione di Banche Italiane SpA#		104,706		281,708
				20,124,481
Japan — 20.1%
ABC-Mart, Inc.#		72,800		4,573,527
AEON Financial Service Co., Ltd.#		47,400		872,730
Ain Holdings, Inc.		50,100		2,842,381
Air Water, Inc.		24,000		443,512
Asante, Inc.		11,000		162,664
Brother Industries, Ltd.		49,100		823,830
Chiba Bank, Ltd.#		165,000		977,577
Coca-Cola East Japan Co., Ltd.		13,200		232,194

Security Description	Shares		Value (Note 2)
Japan (continued)
Coca-Cola West Co., Ltd.		21,500	$	487,290
Cosmos Pharmaceutical Corp.		4,500		816,798
Daifuku Co., Ltd.		77,600		1,344,772
Daiseki Co., Ltd.		51,400		893,719
Daiwa Securities Group, Inc.#		155,000		905,446
Doshisha Co., Ltd.		9,100		173,090
FamilyMart UNY Holdings Co., Ltd.#		4,900		350,930
FP Corp.†		9,146		694,513
Fuji Seal International, Inc.		58,000		2,203,064
Fujikura, Ltd.#		424,000		2,380,940
Glory, Ltd.		3,300		105,731
Gurunavi, Inc.#		286,700		7,093,723
Harmonic Drive Systems, Inc.		102,600		2,877,738
Heian Ceremony Service Co., Ltd.		10,212		66,820
Hirose Electric Co., Ltd.		5,400		693,104
Hogy Medical Co., Ltd.		2,600		176,659
Ichigo, Inc.		1,852,600		7,538,246
Iriso Electronics Co., Ltd.#		9,950		587,585
Japan Exchange Group, Inc.		9,400		146,817
Japan Pure Chemical Co., Ltd.		2,700		60,542
Jeol, Ltd.#		65,000		238,728
JGC Corp.#		28,060		445,044
Kakaku.com, Inc.#		18,800		314,348
Kansai Paint Co., Ltd.		67,000		1,475,794
Kintetsu World Express, Inc.#		18,000		218,857
Kobayashi Pharmaceutical Co., Ltd.		48,900		2,270,956
Koito Manufacturing Co., Ltd.		46,400		2,208,670
Lawson, Inc.#		19,700		1,382,323
Matsumotokiyoshi Holdings Co., Ltd.		61,800		2,720,717
Meitec Corp.		10,400		333,717
Milbon Co., Ltd.		15,700		679,805
Miraca Holdings, Inc.#		38,700		1,834,664
Mitsubishi Pencil Co., Ltd.		3,400		165,950
MonotaRO Co., Ltd.#		11,800		297,780
Nakanishi, Inc.		30,200		1,091,654
NGK Spark Plug Co., Ltd.#		54,400		1,017,388
Nihon Kohden Corp.		33,800		769,659
Nippon Television Holdings, Inc.		39,600		639,555
Nitori Holdings Co., Ltd.		11,400		1,155,811
Nomura Research Institute, Ltd.		53,000		1,792,877
OBIC Business Consultants Co., Ltd.#		22,700		1,035,558
OBIC Co., Ltd.		109,500		5,609,143
Omron Corp.#		6,700		227,294
Proto Corp.		36,900		419,768
Rakuten, Inc.#		7,700		97,045
S Foods, Inc.#		13,300		323,936
Santen Pharmaceutical Co., Ltd.		122,400		1,540,277
Seria Co., Ltd.#		65,667		4,341,200
Shimamura Co., Ltd.		3,400		393,350
Shimano, Inc.#		2,300		334,335
Shimizu Corp.#		494,000		4,406,920
Shizuoka Bank, Ltd.#		67,000		551,723
SK Kaken Co., Ltd.		4,000		398,976
Sony Financial Holdings, Inc.#		56,900		781,471
Square Enix Holdings Co., Ltd.		93,000		2,723,530
Stanley Electric Co., Ltd.		59,800		1,527,583
Start Today Co., Ltd.		194,200		9,018,808
Sugi Holdings Co., Ltd.		53,100		2,602,010
Sundrug Co., Ltd.#		18,200		1,319,287
Taiko Pharmaceutical Co., Ltd.#		10,800		165,760
TechnoPro Holdings, Inc.		106,300		3,457,203
Temp Holdings Co., Ltd.#		309,400		4,937,123
Terumo Corp.		23,800		925,869
Toshiba Plant Systems & Services Corp.#		19,000		298,594
Trusco Nakayama Corp.		63,900		2,933,601

48

VALIC Company II International Opportunities Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Japan (continued)
Tsumura & Co.		12,000	$	315,933
Unicharm Corp.#		75,900		1,843,490
USS Co., Ltd.#		75,400		1,205,351
Welcia Holdings Co., Ltd.		1,400		82,134
Yamato Holdings Co., Ltd.#		96,100		2,267,706
Yonex Co., Ltd.#		40,200		1,950,457
Zojirushi Corp.#		10,200		159,608
				119,775,282
Jersey — 0.3%
boohoo.com plc†		1,694,758		1,830,449
Luxembourg — 0.6%
B&M European Value Retail SA		280,185		1,013,265
Globant SA†#		16,322		637,374
Grand City Properties SA		75,697		1,662,972
Samsonite International SA		175,200		554,448
				3,868,059
Malaysia — 0.2%
Public Bank Bhd		291,700		1,424,155
Mexico — 1.1%
Alsea SAB de CV		112,952		405,462
Bolsa Mexicana de Valores SAB de CV#		177,312		321,594
Concentradora Fibra Hotelera Mexicana SA de CV		545,143		411,032
Elementia SAB de CV†*		312,100		382,187
Fibra Uno Administracion SA de CV		232,349		449,708
Genomma Lab Internacional SAB de CV, Class B†#		597,693		672,803
Grupo Aeroportuario del Centro Norte SAB de CV		516,400		3,178,856
Grupo Financiero Inbursa SAB de CV, Class O#		264,294		460,946
Promotora y Operadora de Infraestructura SAB de CV		33,434		400,906
				6,683,494
Netherlands — 1.0%
Aalberts Industries NV		15,795		529,437
ASM International NV		28,051		1,067,910
Corbion NV VRS		132,619		3,616,886
IMCD Group NV		14,240		587,550
				5,801,783
New Zealand — 0.4%
Fisher & Paykel Healthcare Corp., Ltd.		312,604		2,193,402
Norway — 1.2%
Aker Solutions ASA†		191,412		846,253
Marine Harvest ASA		87,145		1,347,007
Salmar ASA		140,702		3,895,467
Storebrand ASA†		112,384		475,148
XXL ASA*		49,387		595,649
				7,159,524
Panama — 0.2%
Copa Holdings SA, Class A#		14,769		1,128,795
Philippines — 0.1%
Jollibee Foods Corp.		108,950		572,867
Singapore — 1.0%
Ascendas India Trust		2,063,400		1,635,636
City Developments, Ltd.		196,300		1,223,228
Singapore Technologies Engineering, Ltd.		358,100		848,958
Super Group, Ltd.		2,178,600		1,239,249
Venture Corp., Ltd.		132,963		897,838
				5,844,909
South Africa — 0.3%
Clicks Group, Ltd.		149,084		1,228,001

Security Description	Shares		Value (Note 2)
South Africa (continued)
Woolworths Holdings, Ltd.		116,240	$	637,573
				1,865,574
South Korea — 1.8%
Coway Co., Ltd.		18,192		1,360,729
DuzonBizon Co, Ltd.		47,265		864,759
LG Household & Health Care, Ltd.		112		95,526
Mando Corp.		28,543		6,694,165
Samsung Fire & Marine Insurance Co., Ltd.		5,684		1,376,395
TK Corp.		53,523		393,622
				10,785,196
Spain — 1.2%
Amadeus IT Group SA		112,840		5,185,107
Cellnex Telecom SAU*		58,516		1,021,502
Viscofan SA#		17,100		934,445
				7,141,054
Sweden — 0.9%
AAK AB		48,856		3,555,488
Saab AB, Series B		13,010		443,158
Swedish Match AB		37,945		1,352,796
				5,351,442
Switzerland — 5.2%
Autoneum Holding AG		14,822		4,185,665
Coca-Cola HBC AG		20,890		459,207
DKSH Holding AG		3,323		230,250
Forbo Holding AG		2,334		3,205,972
Geberit AG		3,224		1,406,228
Julius Baer Group, Ltd.		9,675		405,572
Logitech International SA		71,808		1,503,985
Lonza Group AG		2,372		449,536
Oriflame Holding AG†		96,337		2,964,163
Sika AG (BR)		516		2,458,417
Sonova Holding AG		10,321		1,428,182
Temenos Group AG		92,501		5,374,848
U-Blox AG		15,085		3,300,587
Ypsomed Holding AG		20,092		3,717,904
				31,090,516
Taiwan — 2.3%
Advantech Co., Ltd.		96,235		787,034
Chroma ATE, Inc.		654,000		1,690,109
Cub Elecparts, Inc.		134,136		1,602,166
E.Sun Financial Holding Co., Ltd.		3,193,021		1,796,235
Ennoconn Corp.		224,000		3,727,392
Hota Industrial Manufacturing Co., Ltd.		440,000		2,281,086
Siliconware Precision Industries Co., Ltd.		288,000		429,769
Voltronic Power Technology Corp.		40,950		633,663
Yuanta Financial Holding Co., Ltd.		2,470,807		876,021
				13,823,475
Thailand — 0.6%
AEON Thana Sinsap Thailand PCL		161,200		459,866
AEON Thana Sinsap Thailand PCL NVDR		15,600		44,503
Glow Energy PCL		240,300		555,358
Precious Shipping PCL†#		856,750		152,216
PTT Global Chemical PCL		855,600		1,507,752
Thai Beverage PCL		1,052,900		768,935
				3,488,630
Turkey — 0.1%
Ford Otomotiv Sanayi AS		18,947		205,522
Tofas Turk Otomobil Fabrikasi AS		32,205		236,954
				442,476

49

VALIC Company II International Opportunities Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
United Kingdom — 15.9%
Abcam PLC		35,903	$	342,044
Admiral Group PLC		23,153		623,269
Ashtead Group PLC		34,030		565,284
Babcock International Group PLC		82,449		1,132,482
Bellway PLC		115,370		3,529,904
Booker Group PLC		1,248,429		2,886,937
Britvic PLC		47,512		400,858
Bunzl PLC		326,767		10,118,034
Burberry Group PLC		33,057		566,050
Cineworld Group PLC		252,995		1,896,977
Cobham PLC		255,406		542,319
Compass Group PLC		189,426		3,586,898
Croda International PLC		88,489		3,846,196
Dignity PLC		145,930		5,152,874
Domino’s Pizza Group PLC		1,558,639		7,343,652
Electrocomponents PLC		94,465		378,094
Elementis PLC		237,517		679,932
Exova Group PLC		216,837		560,937
Fevertree Drinks PLC#		566,151		7,308,023
GKN PLC		156,392		638,688
Halma PLC		288,743		4,019,124
Hargreaves Lansdown PLC		40,993		711,632
IG Group Holdings PLC		123,092		1,537,179
IMI PLC		38,010		527,578
Intertek Group PLC		48,888		2,241,126
Jardine Lloyd Thompson Group PLC		90,235		1,164,184
John Wood Group PLC		50,822		464,822
Just Eat PLC†#		649,973		4,617,498
Meggitt PLC		154,016		947,118
Micro Focus International PLC		97,201		2,550,236
Mitie Group PLC#		20,763		73,724
Moneysupermarket.com Group PLC		68,508		259,448
Next PLC		24,476		1,775,771
Poundland Group PLC		86,382		254,372
PZ Cussons PLC		26,412		116,188
Rathbone Brothers PLC		57,089		1,380,131
Rightmove PLC		52,987		2,852,078
Rotork PLC		124,726		329,042
RPC Group PLC		284,923		3,251,333
Schroders PLC		75,472		2,759,111
SIG PLC		93,638		153,824
Smith & Nephew PLC		93,089		1,502,327
Smiths Group PLC		21,886		385,398
Spectris PLC		49,477		1,257,833
Spirax-Sarco Engineering PLC		18,174		1,034,317
Stagecoach Group PLC		426,840		1,275,709
Tate & Lyle PLC		31,878		307,047
Travis Perkins PLC		25,234		551,715
Victrex PLC#		31,199		623,547
Whitbread PLC		42,201		2,311,964
Zoopla Property Group PLC*		353,907		1,387,227
				94,722,055
United States — 1.1%
China Biologic Products, Inc.†		23,961		2,636,668
Cognizant Technology Solutions Corp., Class A†		24,602		1,413,139
EPAM Systems, Inc.†		18,878		1,287,668
Gran Tierra Energy, Inc.†		365,604		1,025,944
PriceSmart, Inc.		4,516		377,222
				6,740,641
Total Common Stocks
(cost $482,150,104)				574,569,621

Security Description	Shares/ Principal Amount			Value (Note 2)
EXCHANGE-TRADED FUNDS — 0.5%
United States — 0.5%
iShares MSCI EAFE Small-Cap ETF
(cost $3,145,236)		62,459		$	3,176,040
EQUITY CERTIFICATES — 1.1%
Deutsche Bank AG - MOIL, Ltd.†		255,892			960,216
Merrill Lynch - CESC, Ltd.†		154,339			1,536,246
Merrill Lynch - Shriram Transport Finance Co., Ltd.†		60,629			1,119,921
Merrill Lynch Int’l & Co. - Dabur India, Ltd.†		308,947			1,340,600
Merrill Lynch Int’l & Co. - Federal Bank Ltd.†		1,183,318			1,214,768
Total Equity Certificates
(cost $4,805,707)					6,171,751
	��
WARRANTS — 0.0%
Precious Shipping PCL† Expires 06/15/2018 (strike price THB 17.50)†
(cost $0)		27,795			1,454
Total Long-Term Investment Securities
(cost $490,101,047)					583,918,866
SHORT-TERM INVESTMENT SECURITIES — 7.7%
Registered Investment Companies —7.7%
State Street Navigator Securities Lending Prime Portfolio 0.43%(1)(3)
(cost $45,814,865)		45,814,865			45,814,865
REPURCHASE AGREEMENTS — 1.1%
Agreement with State Street Bank and Trust Co., bearing interest at 0.01%, dated 08/31/2016, to be repurchased 09/01/2016 in the amount of $6,614,002 collateralized by $6,150,000 of United States Treasury Notes, bearing interest at 3.13% due 05/15/2021 and having an approximate value of $6,748,370 (cost $6,614,000)	$	6,614,000			6,614,000
TOTAL INVESTMENTS
(cost $542,529,912)(2)		106.8	%		636,347,731
Liabilities in excess of other assets		(6.8	)		(40,292,584	)
NET ASSETS		100.0	%	$	596,055,147

† 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 August 31, 2016, the aggregate value of these securities was $9,730,240 representing 0.90% of net assets. Unless otherwise indicated, these securities are not considered to be illiquid.

(1) At August 31, 2016, the Fund had loaned securities with a total value of $43,275,581. This was secured by collateral of $45,814,865, which was received in cash and subsequently invested in short-term investments currently valued at $45,814,865 as reported in the Portfolio of Investments. Additional collateral of $764,153 was received in the form of fixed income pooled securities, which the Fund cannot sell or repledge and accordingly, is not reflected in the Fund’s assets and liabilities. The components of the fixed income pooled securities referenced above are as follows:

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

Securities	Coupon Range		Maturity Date Range		Value as of August 31, 2016
United States Treasury Notes/Bonds		0.13% to 8.88%		11/15/2016 to 11/15/2045	$	764,153

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

(3) The rate shown is a 7-day yield as of August 31, 2016.

(4) Illiquid security. At August 31, 2016, the aggregate value of these securities was $0 representing 0.0% of net assets.

(5) Fair valued security. Securities are classified as Level 3 based on the securities valuation inputs (see Note 2).

50

VALIC Company II International Opportunities Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

ADR—American Depositary Receipt

BR—Bearer Shares

ETF—Exchange Traded Fund

NVDR—Non-Voting Depositary Receipt

THB—Thai Baht

The following is a summary of the inputs used to value the Fund’s net assets as of August 31, 2016 (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	$	17,931,243	$	—	$	0	$	17,931,243
Other Countries		556,638,378		—		—		556,638,378
Exchange Traded-Funds		3,176,040		—		—		3,176,040
Equity Certificates		—		6,171,751		—		6,171,751
Warrants		1,454		—		—		1,454
Short-Term Investment Securities		45,814,865		—		—		45,814,865
Repurchase Agreements		—		6,614,000		—		6,614,000
Total Investments at Value	$	623,561,980	$	12,785,751	$	0	$	636,347,731

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

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. Securities currently valued at $351,829,497 were transferred from Level 2 to Level 1 due to foreign equity securities whose values were previously adjusted for fair value pricing procedures for foreign equity securities. There were no additional transfers between Levels during the reporting period.

At the beginning and the end of the reporting period Level 3 investments in securities were not considered a material portion of the Fund.

See Notes to Financial Statements

51

VALIC Company II Large Cap Value Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Diversified Banking Institutions	9.6	%
Oil Companies — Exploration & Production	7.7
Medical — Drugs	7.0
Banks — Super Regional	3.8
Insurance — Multi-line	3.8
Food — Misc./Diversified	3.3
Insurance — Reinsurance	2.8
Aerospace/Defense	2.7
Telephone — Integrated	2.6
Multimedia	2.5
Networking Products	2.5
Finance — Investment Banker/Broker	2.4
Electronic Components — Semiconductors	2.2
Real Estate Investment Trusts	2.2
Registered Investment Companies	2.0
Oil — Field Services	2.0
Building Products — Cement	2.0
Enterprise Software/Service	1.8
Beverages — Non-alcoholic	1.8
Oil Refining & Marketing	1.5
Aerospace/Defense — Equipment	1.5
Insurance — Life/Health	1.4
Brewery	1.4
Commercial Paper	1.4
Advertising Agencies	1.3
Instruments — Controls	1.3
Semiconductor Equipment	1.3
Airlines	1.2
Cosmetics & Toiletries	1.2
Web Portals/ISP	1.2
Finance — Consumer Loans	1.1
Medical — HMO	1.1
Oil Companies — Integrated	0.9
Diagnostic Equipment	0.9
Medical Instruments	0.9
Medical Labs & Testing Services	0.8
Chemicals — Diversified	0.8
Applications Software	0.8
Electric — Distribution	0.8
Agricultural Operations	0.7
Retail — Office Supplies	0.7
Pipelines	0.7
Containers — Paper/Plastic	0.7
Agricultural Chemicals	0.7
Insurance — Property/Casualty	0.7
Medical — Wholesale Drug Distribution	0.7
Investment Management/Advisor Services	0.6
Banks — Commercial	0.6
Computer Services	0.6
Electronic Components — Misc.	0.6
Cruise Lines	0.5
E-Commerce/Products	0.5
Exchange-Traded Funds	0.5
Retail — Drug Store	0.5
Containers — Metal/Glass	0.5
Finance — Commercial	0.5
Cellular Telecom	0.4
Medical Products	0.4
Finance — Mortgage Loan/Banker	0.4
Retail — Discount	0.4
Transport — Rail	0.3
Finance — Credit Card	0.3
Time Deposits	0.3
Insurance Brokers	0.3
Electric Products — Misc.	0.3
Diversified Manufacturing Operations	0.3

Non-Hazardous Waste Disposal	0.3
Vitamins & Nutrition Products	0.2
Semiconductor Components — Integrated Circuits	0.2
	101.9	%

* Calculated as a percentage of net assets

52

VALIC Company II Large Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Shares		Value (Note 2)
COMMON STOCKS — 97.7%
Advertising Agencies — 1.3%
Omnicom Group, Inc.		34,818	$	2,998,874
Aerospace/Defense — 2.7%
Northrop Grumman Corp.		7,416		1,572,711
Raytheon Co.		33,976		4,761,057
				6,333,768
Aerospace/Defense - Equipment — 1.5%
United Technologies Corp.		32,217		3,428,855
Agricultural Chemicals — 0.7%
CF Industries Holdings, Inc.		47,459		1,233,934
Potash Corp. of Saskatchewan, Inc.		22,521		407,630
				1,641,564
Agricultural Operations — 0.7%
Archer-Daniels-Midland Co.		38,739		1,695,219
Airlines — 1.2%
Delta Air Lines, Inc.		54,332		1,996,701
United Continental Holdings, Inc.†		16,451		829,295
				2,825,996
Applications Software — 0.8%
Check Point Software Technologies, Ltd.†		15,003		1,151,330
Microsoft Corp.		11,434		656,998
				1,808,328
Banks - Commercial — 0.6%
BB&T Corp.		34,946		1,345,421
Banks - Super Regional — 3.8%
Comerica, Inc.		26,783		1,266,568
Fifth Third Bancorp		59,458		1,198,673
PNC Financial Services Group, Inc.		13,691		1,233,559
SunTrust Banks, Inc.		39,231		1,728,910
US Bancorp		36,149		1,595,978
Wells Fargo & Co.		35,128		1,784,503
				8,808,191
Beverages - Non-alcoholic — 1.8%
Coca-Cola Co.		68,552		2,977,213
PepsiCo, Inc.		10,416		1,111,908
				4,089,121
Brewery — 1.4%
Molson Coors Brewing Co., Class B		31,677		3,241,191
Building Products - Cement — 2.0%
Martin Marietta Materials, Inc.		7,867		1,439,897
Vulcan Materials Co.		27,336		3,112,750
				4,552,647
Cellular Telecom — 0.4%
Vodafone Group PLC ADR#		33,039		1,012,645
Chemicals - Diversified — 0.8%
Dow Chemical Co.		15,364		824,125
Westlake Chemical Corp.		20,521		1,063,398
				1,887,523
Computer Services — 0.6%
Teradata Corp.†		41,600		1,319,968
Containers - Metal/Glass — 0.5%
Crown Holdings, Inc.†		19,729		1,069,904
Containers - Paper/Plastic — 0.7%
Packaging Corp. of America		20,985		1,650,051

Security Description	Shares		Value (Note 2)
Cosmetics & Toiletries — 1.2%
Procter & Gamble Co.		22,453	$	1,960,371
Unilever PLC ADR#		17,162		797,347
				2,757,718
Cruise Lines — 0.5%
Carnival Corp.		26,262		1,255,324
Diagnostic Equipment — 0.9%
Abbott Laboratories		48,928		2,055,955
Diversified Banking Institutions — 9.6%
Bank of America Corp.		262,582		4,238,074
Citigroup, Inc.		93,295		4,453,903
Goldman Sachs Group, Inc.		19,716		3,341,073
JPMorgan Chase & Co.		103,331		6,974,843
Morgan Stanley		99,072		3,176,248
				22,184,141
Diversified Manufacturing Operations — 0.3%
General Electric Co.		21,632		675,784
E-Commerce/Products — 0.5%
eBay, Inc.†		38,632		1,242,405
Electric Products - Misc. — 0.3%
Emerson Electric Co.		12,925		680,889
Electric - Distribution — 0.8%
PPL Corp.		50,769		1,765,746
Electronic Components - Misc. — 0.6%
Corning, Inc.		57,452		1,303,586
Electronic Components - Semiconductors — 2.2%
Microchip Technology, Inc.#		51,510		3,188,984
Texas Instruments, Inc.		27,928		1,942,113
				5,131,097
Enterprise Software/Service — 1.8%
Oracle Corp.		102,708		4,233,624
Finance - Commercial — 0.5%
CIT Group, Inc.		28,280		1,042,966
Finance - Consumer Loans — 1.1%
Synchrony Financial		94,492		2,629,712
Finance - Credit Card — 0.3%
American Express Co.		11,614		761,646
Finance - Investment Banker/Broker — 2.4%
Charles Schwab Corp.		66,065		2,078,405
E*TRADE Financial Corp.†		78,793		2,078,559
Raymond James Financial, Inc.		22,378		1,301,728
				5,458,692
Finance - Mortgage Loan/Banker — 0.4%
FNF Group		26,460		997,277
Food - Misc./Diversified — 3.3%
ConAgra Foods, Inc.		92,071		4,291,429
General Mills, Inc.		7,178		508,346
Kellogg Co.		24,726		2,032,724
Mondelez International, Inc., Class A		17,627		793,568
				7,626,067
Instruments - Controls — 1.3%
Honeywell International, Inc.		25,197		2,940,742
Insurance Brokers — 0.3%
Marsh & McLennan Cos., Inc.		10,225		691,517

53

VALIC Company II Large Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Insurance - Life/Health — 1.4%
Prudential Financial, Inc.		41,422	$	3,288,078
Insurance - Multi-line — 3.8%
Allstate Corp.		22,895		1,578,839
Chubb, Ltd.		22,728		2,884,865
Hartford Financial Services Group, Inc.		41,038		1,685,431
Voya Financial, Inc.		86,366		2,525,342
				8,674,477
Insurance - Property/Casualty — 0.7%
XL Group, Ltd.		44,810		1,533,846
Insurance - Reinsurance — 2.8%
Berkshire Hathaway, Inc., Class B†		43,407		6,532,319
Investment Management/Advisor Services — 0.6%
Invesco, Ltd.		47,196		1,472,043
Medical Instruments — 0.9%
Boston Scientific Corp.†		85,229		2,030,155
Medical Labs & Testing Services — 0.8%
Laboratory Corp. of America Holdings†		14,323		1,961,248
Medical Products — 0.4%
Zimmer Biomet Holdings, Inc.		7,711		999,423
Medical - Drugs — 7.0%
Bristol-Myers Squibb Co.		13,297		763,115
Eli Lilly & Co.		24,508		1,905,497
Johnson & Johnson		15,549		1,855,618
Merck & Co., Inc.		79,112		4,967,442
Novartis AG ADR		18,541		1,460,475
Pfizer, Inc.		150,798		5,247,770
				16,199,917
Medical - HMO — 1.1%
Humana, Inc.		4,577		817,955
UnitedHealth Group, Inc.		11,977		1,629,471
				2,447,426
Medical - Wholesale Drug Distribution — 0.7%
AmerisourceBergen Corp.		17,408		1,513,974
Multimedia — 2.5%
Time Warner, Inc.		51,679		4,052,151
Viacom, Inc., Class B		17,848		719,988
Walt Disney Co.		10,328		975,583
				5,747,722
Networking Products — 2.5%
Cisco Systems, Inc.		181,536		5,707,492
Non-Hazardous Waste Disposal — 0.3%
Republic Services, Inc.		12,044		608,463
Oil Companies - Exploration & Production — 7.7%
EOG Resources, Inc.		44,590		3,945,769
Hess Corp.		45,442		2,467,501
Noble Energy, Inc.		14,524		500,788
Occidental Petroleum Corp.		109,932		8,448,274
Pioneer Natural Resources Co.		13,648		2,443,674
				17,806,006
Oil Companies - Integrated — 0.9%
Exxon Mobil Corp.		24,280		2,115,759
Oil Refining & Marketing — 1.5%
HollyFrontier Corp.		30,990		802,021
Phillips 66		33,982		2,665,888
				3,467,909

Security Description	Shares/ Principal Amount		Value (Note 2)
Oil - Field Services — 2.0%
Baker Hughes, Inc.		15,930	$	782,641
Halliburton Co.		68,463		2,944,594
Schlumberger, Ltd.		10,622		839,138
				4,566,373
Pipelines — 0.7%
Kinder Morgan, Inc.		75,696		1,653,958
Real Estate Investment Trusts — 2.2%
AvalonBay Communities, Inc.		3,295		576,658
Communications Sales & Leasing, Inc.		67,993		2,121,381
Equity Residential		15,078		978,110
Host Hotels & Resorts, Inc.		26,974		480,677
Weyerhaeuser Co.		27,105		863,294
				5,020,120
Retail - Discount — 0.4%
Target Corp.		12,093		848,808
Retail - Drug Store — 0.5%
CVS Health Corp.		11,941		1,115,289
Retail - Office Supplies — 0.7%
Staples, Inc.		194,900		1,668,344
Semiconductor Components - Integrated Circuits — 0.2%
Analog Devices, Inc.		6,451		403,575
Semiconductor Equipment — 1.3%
Applied Materials, Inc.		96,683		2,885,021
Telephone - Integrated — 2.6%
AT&T, Inc.		111,240		4,547,491
Verizon Communications, Inc.		29,391		1,538,031
				6,085,522
Transport - Rail — 0.3%
CSX Corp.		27,580		779,962
Vitamins & Nutrition Products — 0.2%
Mead Johnson Nutrition Co.		5,766		490,514
Web Portals/ISP — 1.2%
Alphabet, Inc., Class A†		3,428		2,707,606
Total Common Stocks
(cost $205,780,478)				225,475,503
EXCHANGE-TRADED FUNDS — 0.5%
iShares Russell 1000 Value ETF#
(cost $1,207,991)		11,377		1,210,399
Total Long-Term Investment Securities
(cost $206,988,469)				226,685,902
SHORT-TERM INVESTMENT SECURITIES — 3.7%
Commercial Paper — 1.4%
BNP Paribas SA NY 0.29% due 09/01/2016	$	3,200,000		3,200,000
Registered Investment Companies — 2.0%
State Street Navigator Securities Lending Prime Portfolio 0.43%(1)(3)		4,663,513		4,663,513

54

VALIC Company II Large Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount			Value (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
Time Deposits — 0.3%
Euro Time Deposit with State Street Bank and Trust Co. 0.01% due 09/01/2016	$	748,000		$	748,000
Total Short-Term Investment Securities
(cost $8,611,513)					8,611,513
TOTAL INVESTMENTS
(cost $215,599,982)(2)		101.9	%		235,297,415
Liabilities in excess of other assets		(1.9	)		(4,453,231	)
NET ASSETS		100.0	%	$	230,844,184

† Non-income producing security

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

(1) At August 31, 2016, the Fund had loaned securities with a total value of $4,580,847. This was secured by collateral of $4,663,513, which was received in cash and subsequently invested in short-term investments currently valued at $4,663,513 as reported in the Portfolio of Investments.

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

(3) The rate shown is the 7-day yield as of August 31, 2016.

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 August 31, 2016 (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	$	225,475,503	$	—	$	—	$	225,475,503
Exchange-Traded Funds		1,210,399		—		—		1,210,399
Short-Term Investment Securities:
Registered Investment Companies		4,663,513		—		—		4,663,513
Other Short-Term Investment Securities		—		3,948,000		—		3,948,000
Total Investments at Value	$	231,349,415	$	3,948,000	$	—	$	235,297,415

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

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.

See Notes to Financial Statements

55

VALIC Company II Mid Cap Growth Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Commercial Services — Finance	7.5	%
Medical Instruments	5.3
Commercial Services	3.8
Data Processing/Management	3.5
Finance — Other Services	3.4
Applications Software	3.4
Retail — Apparel/Shoe	3.4
Retail — Auto Parts	2.8
Enterprise Software/Service	2.6
Entertainment Software	2.5
Auto/Truck Parts & Equipment — Original	2.5
Resorts/Theme Parks	2.5
Aerospace/Defense — Equipment	2.4
Auction Houses/Art Dealers	2.3
Medical — Biomedical/Gene	2.3
Telephone — Integrated	2.2
Electronic Security Devices	2.0
Non-Hazardous Waste Disposal	2.0
Beverages — Wine/Spirits	2.0
Distribution/Wholesale	1.8
Retail — Discount	1.8
Building Products — Cement	1.7
Lighting Products & Systems	1.7
Consulting Services	1.6
Cable/Satellite TV	1.6
Beverages — Non-alcoholic	1.6
Real Estate Management/Services	1.6
Veterinary Diagnostics	1.6
Food — Canned	1.5
Drug Delivery Systems	1.5
Computer Services	1.5
Transport — Rail	1.5
Coatings/Paint	1.4
Registered Investment Companies	1.4
Building Products — Doors & Windows	1.3
Web Portals/ISP	1.3
Theaters	1.3
Diversified Manufacturing Operations	1.2
Electronic Components — Semiconductors	1.2
Repurchase Agreements	1.2
Dental Supplies & Equipment	1.2
Semiconductor Components — Integrated Circuits	1.2
Airlines	1.2
Transport — Truck	1.1
Electronic Measurement Instruments	1.0
Retail — Perfume & Cosmetics	1.0
Building — Maintenance & Services	1.0
Medical — Hospitals	1.0
Retail — Arts & Crafts	0.9
Finance — Investment Banker/Broker	0.9
Retail — Restaurants	0.8
Oil Companies — Exploration & Production	0.7
	101.7	%

* Calculated as a percentage of net assets

56

VALIC Company II Mid Cap Growth Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Shares		Value (Note 2)
COMMON STOCKS — 99.1%
Aerospace/Defense - Equipment — 2.4%
Harris Corp.		17,409	$	1,618,689
Orbital ATK, Inc.		16,570		1,249,875
				2,868,564
Airlines — 1.2%
Spirit Airlines, Inc.†		36,240		1,449,238
Applications Software — 3.4%
Paycom Software, Inc.†#		30,865		1,584,609
ServiceNow, Inc.†		35,210		2,558,711
				4,143,320
Auction Houses/Art Dealers — 2.3%
KAR Auction Services, Inc.		66,859		2,826,799
Auto/Truck Parts & Equipment - Original — 2.5%
Delphi Automotive PLC		25,650		1,812,429
Johnson Controls, Inc.		27,820		1,220,742
				3,033,171
Beverages - Non-alcoholic — 1.6%
Monster Beverage Corp.†		12,650		1,946,708
Beverages - Wine/Spirits — 2.0%
Constellation Brands, Inc., Class A		14,320		2,349,196
Building Products - Cement — 1.7%
Vulcan Materials Co.		18,300		2,083,821
Building Products - Doors & Windows — 1.3%
Masonite International Corp.†		23,840		1,590,843
Building - Maintenance & Services — 1.0%
Rollins, Inc.		41,591		1,185,343
Cable/Satellite TV — 1.6%
Liberty Broadband Corp., Class C†		28,800		1,973,664
Coatings/Paint — 1.4%
Sherwin-Williams Co.		6,090		1,727,794
Commercial Services — 3.8%
Aramark		65,380		2,479,864
CoStar Group, Inc.†		10,141		2,101,722
				4,581,586
Commercial Services - Finance — 7.5%
S&P Global, Inc.		18,320		2,263,253
Total System Services, Inc.		37,443		1,844,068
TransUnion†		54,230		1,789,048
Vantiv, Inc., Class A†		21,920		1,177,981
WEX, Inc.†		19,850		1,971,303
				9,045,653
Computer Services — 1.5%
EPAM Systems, Inc.†		26,828		1,829,938
Consulting Services — 1.6%
Verisk Analytics, Inc.†		23,800		1,976,590
Data Processing/Management — 3.5%
Acxiom Corp.†		57,172		1,485,900
Fidelity National Information Services, Inc.		34,680		2,751,165
				4,237,065
Dental Supplies & Equipment — 1.2%
Align Technology, Inc.†		15,870		1,474,323
Distribution/Wholesale — 1.8%
HD Supply Holdings, Inc.†		59,840		2,160,822
Diversified Manufacturing Operations — 1.2%
Carlisle Cos., Inc.		14,250		1,494,255

Security Description	Shares		Value (Note 2)
Drug Delivery Systems — 1.5%
DexCom, Inc.†		20,290	$	1,848,216
Electronic Components - Semiconductors — 1.2%
Broadcom, Ltd.		8,450		1,490,749
Electronic Measurement Instruments — 1.0%
FLIR Systems, Inc.		40,850		1,259,405
Electronic Security Devices — 2.0%
Allegion PLC		34,480		2,455,666
Enterprise Software/Service — 2.6%
Tyler Technologies, Inc.†		11,940		1,957,563
Veeva Systems, Inc., Class A†		28,616		1,170,967
				3,128,530
Entertainment Software — 2.5%
Electronic Arts, Inc.†		37,570		3,051,811
Finance - Investment Banker/Broker — 0.9%
Raymond James Financial, Inc.		17,880		1,040,080
Finance - Other Services — 3.4%
Intercontinental Exchange, Inc.		8,980		2,532,540
SEI Investments Co.		35,100		1,618,110
				4,150,650
Food - Canned — 1.5%
TreeHouse Foods, Inc.†		19,680		1,864,286
Lighting Products & Systems — 1.7%
Acuity Brands, Inc.		3,915		1,077,095
Universal Display Corp.†		16,580		954,842
				2,031,937
Medical Instruments — 5.3%
Boston Scientific Corp.†		74,450		1,773,399
Edwards Lifesciences Corp.†		18,740		2,158,099
Intuitive Surgical, Inc.†		3,510		2,409,334
				6,340,832
Medical - Biomedical/Gene — 2.3%
BioMarin Pharmaceutical, Inc.†		15,250		1,431,822
Incyte Corp.†		16,010		1,298,411
				2,730,233
Medical - Hospitals — 1.0%
Surgical Care Affiliates, Inc.†		28,037		1,156,526
Non-Hazardous Waste Disposal — 2.0%
Waste Connections, Inc.		31,389		2,399,061
Oil Companies - Exploration & Production — 0.7%
Diamondback Energy, Inc.†		8,880		845,820
Real Estate Management/Services — 1.6%
CBRE Group, Inc., Class A†		63,680		1,903,395
Resorts/Theme Parks — 2.5%
Six Flags Entertainment Corp.		32,350		1,577,709
Vail Resorts, Inc.		8,800		1,394,184
				2,971,893
Retail - Apparel/Shoe — 3.4%
Burlington Stores, Inc.†		22,270		1,808,770
Coach, Inc.		37,105		1,416,669
L Brands, Inc.		11,830		901,564
				4,127,003
Retail - Arts & Crafts — 0.9%
Michaels Cos., Inc.†		47,419		1,136,159

57

VALIC Company II Mid Cap Growth Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Retail - Auto Parts — 2.8%
O’Reilly Automotive, Inc.†		12,130	$	3,395,793
Retail - Discount — 1.8%
Dollar General Corp.		29,110		2,136,965
Retail - Perfume & Cosmetics — 1.0%
Ulta Salon Cosmetics & Fragrance, Inc.†		4,830		1,194,024
Retail - Restaurants — 0.8%
Dave & Buster’s Entertainment, Inc.†		19,422		902,152
Semiconductor Components - Integrated Circuits — 1.2%
NXP Semiconductors NV†		16,530		1,454,971
Telephone - Integrated — 2.2%
Zayo Group Holdings, Inc.†		89,592		2,599,064
Theaters — 1.3%
Cinemark Holdings, Inc.		39,290		1,518,558
Transport - Rail — 1.5%
Kansas City Southern		18,910		1,828,975
Transport - Truck — 1.1%
JB Hunt Transport Services, Inc.		16,800		1,333,752
Veterinary Diagnostics — 1.6%
VCA, Inc.†		26,370		1,867,260
Web Portals/ISP — 1.3%
Yandex NV, Class A†		69,270		1,526,711
Total Long-Term Investment Securities
(cost $106,748,573)				119,669,170

Security Description	Shares/ Principal Amount			Value (Note 2)
SHORT-TERM INVESTMENT SECURITIES — 1.4%
Registered Investment Companies — 1.4%
State Street Navigator Securities Lending Prime Portfolio 0.43%(1)(2) (cost $1,629,758)		1,629,758		$	1,629,758
REPURCHASE AGREEMENTS — 1.2%
Agreement with State Street Bank & Trust Co., bearing interest at 1.00%, dated 08/31/2016, to be repurchased 09/01/2016 in the amount $1,475,000 collateralized by $1,430,000 of United States Treasury Notes, bearing interest at 2.13% due 09/30/2021 and having an approximate value of $1,505,488 (cost $1,475,000)	$	1,475,000			1,475,000
TOTAL INVESTMENTS
(cost $109,853,331)(3)		101.7	%		122,773,928
Liabilities in excess of other assets		(1.7	)		(2,000,385	)
NET ASSETS		100.0	%	$	120,773,543

† Non-income producing security

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

(1) At August 31, 2016, the Fund had loaned securities with a total value of $1,593,748. This was secured by collateral of $1,629,758, which was received in cash and subsequently invested in short-term investments currently valued at $1,629,758 as reported in the Portfolio of Investments.

(2) The rate shown is the 7-day yield as of August 31, 2016.

(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 August 31, 2016 (see Note 2):

	Level 1 - Unadjusted Quoted  Prices		Level 2 - Other Observable  Inputs		Level 3 - Significant Unobservable  Inputs		Total
ASSETS:
Investments at Value:*
Common Stocks	$	119,669,170	$	—	$	—	$	119,669,170
Short-Term Investment Securities		1,629,758		—		—		1,629,758
Repurchase Agreements		—		1,475,000		—		1,475,000
Total Investments at Value	$	121,298,928	$	1,475,000	$	—	$	122,773,928

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

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.

See Notes to Financial Statements

58

VALIC Company II Mid Cap Value Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Real Estate Investment Trusts	9.5	%
Oil Companies — Exploration & Production	8.2
Electric — Integrated	5.0
Electronic Components — Semiconductors	3.8
Banks — Commercial	3.6
Banks — Super Regional	3.3
Containers — Paper/Plastic	2.9
Insurance — Property/Casualty	2.5
Aerospace/Defense — Equipment	2.4
Registered Investment Companies	2.4
Insurance — Reinsurance	2.2
Insurance — Life/Health	2.2
Building — Residential/Commercial	2.0
Finance — Investment Banker/Broker	2.0
Electronic Parts Distribution	2.0
Commercial Services — Finance	1.7
Power Converter/Supply Equipment	1.5
Insurance Brokers	1.5
Entertainment Software	1.3
Medical Instruments	1.3
Gas — Distribution	1.2
Medical Products	1.2
Chemicals — Specialty	1.2
Finance — Credit Card	1.1
Computer Services	1.1
Human Resources	1.1
Advertising Agencies	1.0
Chemicals — Diversified	1.0
Insurance — Multi-line	1.0
Diversified Manufacturing Operations	0.9
Shipbuilding	0.9
Building & Construction Products — Misc.	0.9
Building Products — Wood	0.9
Food — Misc./Diversified	0.9
Distribution/Wholesale	0.9
Data Processing/Management	0.8
Medical Labs & Testing Services	0.8
Tools — Hand Held	0.8
Repurchase Agreements	0.8
Rental Auto/Equipment	0.7
Auto/Truck Parts & Equipment — Original	0.7
Home Decoration Products	0.7
Transport — Rail	0.7
Electronic Components — Misc.	0.6
Applications Software	0.6
Computer Software	0.6
Food — Flour & Grain	0.6
Building Products — Doors & Windows	0.6
Consulting Services	0.6
Physicians Practice Management	0.6
Cruise Lines	0.6
Recreational Vehicles	0.6
Rubber — Tires	0.5
E-Commerce/Services	0.5
Finance — Consumer Loans	0.5
Retail — Apparel/Shoe	0.5
Finance — Other Services	0.5
E-Commerce/Products	0.5
Transport — Truck	0.5
Transport — Services	0.4
Medical — Hospitals	0.4
Agricultural Chemicals	0.4
Medical — Wholesale Drug Distribution	0.4
Oil Refining & Marketing	0.4
Savings & Loans/Thrifts	0.4
Containers — Metal/Glass	0.4
Apparel Manufacturers	0.4
Coatings/Paint	0.4
Decision Support Software	0.4

Electronic Connectors	0.4
Instruments — Controls	0.3
Cellular Telecom	0.3
Retail — Restaurants	0.3
Dialysis Centers	0.3
Medical — Drugs	0.3
Steel — Producers	0.3
Banks — Fiduciary	0.3
Retail — Consumer Electronics	0.3
Multimedia	0.3
Beverages — Non-alcoholic	0.3
Motorcycle/Motor Scooter	0.3
Retirement/Aged Care	0.2
Metal Processors & Fabrication	0.2
Office Supplies & Forms	0.2
Publishing — Books	0.2
Engineering/R&D Services	0.2
Computers — Memory Devices	0.2
Electronic Measurement Instruments	0.2
Medical — Generic Drugs	0.2
Finance — Auto Loans	0.2
Beverages — Wine/Spirits	0.2
Television	0.1
Oil — Field Services	0.1
	101.4	%

* Calculated as a percentage of net assets

59

VALIC Company II Mid Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Shares		Value (Note 2)
COMMON STOCKS — 98.2%
Advertising Agencies — 1.0%
Interpublic Group of Cos., Inc.		265,828	$	6,151,260
Omnicom Group, Inc.		46,470		4,002,461
				10,153,721
Aerospace/Defense - Equipment — 2.4%
Curtiss-Wright Corp.		36,035		3,239,547
Harris Corp.		152,548		14,183,913
Moog, Inc., Class A†		115,391		6,806,915
				24,230,375
Agricultural Chemicals — 0.4%
CF Industries Holdings, Inc.		112,632		2,928,432
Mosaic Co.		45,434		1,366,200
				4,294,632
Apparel Manufacturers — 0.4%
Global Brands Group Holding, Ltd.†		42,613,060		3,955,038
Applications Software — 0.6%
Verint Systems, Inc.†		183,823		6,272,041
Auto/Truck Parts & Equipment - Original — 0.7%
Lear Corp.		11,629		1,352,336
Tenneco, Inc.†		57,792		3,226,527
WABCO Holdings, Inc.†		23,993		2,561,493
				7,140,356
Banks - Commercial — 3.6%
Bank of the Ozarks, Inc.		103,473		4,054,072
BankUnited, Inc.		156,326		5,025,881
BB&T Corp.		88,005		3,388,192
East West Bancorp, Inc.		111,185		4,129,411
IBERIABANK Corp.		63,565		4,371,365
South State Corp.		55,309		4,202,931
Zions Bancorporation		337,718		10,330,794
				35,502,646
Banks - Fiduciary — 0.3%
State Street Corp.		43,617		3,063,658
Banks - Super Regional — 3.3%
Comerica, Inc.		231,086		10,928,057
Fifth Third Bancorp		421,075		8,488,872
Huntington Bancshares, Inc.		674,714		6,753,887
SunTrust Banks, Inc.		154,802		6,822,124
				32,992,940
Beverages - Non-alcoholic — 0.3%
Coca-Cola European Partners PLC		67,997		2,614,485
Beverages - Wine/Spirits — 0.2%
Constellation Brands, Inc., Class A		9,909		1,625,571
Building & Construction Products - Misc. — 0.9%
Louisiana-Pacific Corp.†		472,804		9,210,222
Building Products - Doors & Windows — 0.6%
Sanwa Holdings Corp.		658,620		5,843,649
Building Products - Wood — 0.9%
Masco Corp.		250,470		8,886,676
Building - Residential/Commercial — 2.0%
D.R. Horton, Inc.		125,026		4,008,334
Lennar Corp., Class A		169,277		8,006,802
PulteGroup, Inc.		332,385		7,103,067
Toll Brothers, Inc.†		38,787		1,205,888
				20,324,091

Security Description	Shares		Value (Note 2)
Cellular Telecom — 0.3%
Millicom International Cellular SA SDR		64,932	$	3,325,995
Chemicals - Diversified — 1.0%
Celanese Corp., Series A		100,103		6,449,636
PPG Industries, Inc.		33,569		3,554,286
				10,003,922
Chemicals - Specialty — 1.2%
Cabot Corp.		110,613		5,515,164
Methanex Corp.#		223,292		6,475,468
				11,990,632
Coatings/Paint — 0.4%
Valspar Corp.		35,511		3,743,215
Commercial Services - Finance — 1.7%
Equifax, Inc.		35,187		4,641,165
IHS Markit, Ltd.†		170,796		6,374,107
Moody’s Corp.		17,867		1,941,964
Total System Services, Inc.		87,132		4,291,251
				17,248,487
Computer Services — 1.1%
Amdocs, Ltd.		152,131		9,146,116
Leidos Holdings, Inc.		45,682		1,850,578
				10,996,694
Computer Software — 0.6%
SS&C Technologies Holdings, Inc.#		185,409		6,109,227
Computers - Memory Devices — 0.2%
Western Digital Corp.		41,959		1,958,227
Consulting Services — 0.6%
Booz Allen Hamilton Holding Corp.		190,495		5,783,428
Containers - Metal/Glass — 0.4%
Crown Holdings, Inc.†		74,592		4,045,124
Containers - Paper/Plastic — 2.9%
Bemis Co., Inc.		109,046		5,735,819
Berry Plastics Group, Inc.†		101,984		4,629,054
Graphic Packaging Holding Co.		509,441		7,305,384
Packaging Corp. of America		49,580		3,898,475
Sealed Air Corp.		83,798		3,949,400
WestRock Co.		63,012		3,018,275
				28,536,407
Cruise Lines — 0.6%
Norwegian Cruise Line Holdings, Ltd.†		158,901		5,702,957
Data Processing/Management — 0.8%
Fidelity National Information Services, Inc.		106,870		8,477,997
Decision Support Software — 0.4%
MSCI, Inc.		40,679		3,665,991
Dialysis Centers — 0.3%
DaVita, Inc.†		50,400		3,257,352
Distribution/Wholesale — 0.9%
WESCO International, Inc.†#		141,275		8,781,654
Diversified Manufacturing Operations — 0.9%
Ingersoll-Rand PLC		87,120		5,923,289
Textron, Inc.		84,862		3,466,613
				9,389,902
E-Commerce/Products — 0.5%
eBay, Inc.†		151,984		4,887,805

60

VALIC Company II Mid Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
E-Commerce/Services — 0.5%
Expedia, Inc.		24,531	$	2,676,823
IAC/InterActiveCorp		46,640		2,738,234
				5,415,057
Electric - Integrated — 5.0%
Alliant Energy Corp.		281,965		10,700,572
Ameren Corp.		56,173		2,776,070
American Electric Power Co., Inc.		111,367		7,190,967
Edison International		110,234		8,016,216
FirstEnergy Corp.		38,041		1,245,082
Great Plains Energy, Inc.		284,346		7,722,837
PG&E Corp.		92,604		5,735,892
Portland General Electric Co.		138,048		5,813,201
Westar Energy, Inc.		7,437		408,589
				49,609,426
Electronic Components - Misc. — 0.6%
Flextronics International, Ltd.†		320,233		4,239,885
Jabil Circuit, Inc.		103,550		2,194,224
				6,434,109
Electronic Components - Semiconductors — 3.8%
Broadcom, Ltd.		15,509		2,736,098
Microsemi Corp.†		381,400		15,240,744
ON Semiconductor Corp.†		126,422		1,365,358
Qorvo, Inc.†		174,805		10,039,051
Silicon Motion Technology Corp. ADR		173,821		8,774,484
				38,155,735
Electronic Connectors — 0.4%
TE Connectivity, Ltd.		56,391		3,584,776
Electronic Measurement Instruments — 0.2%
Keysight Technologies, Inc.†		58,535		1,781,220
Electronic Parts Distribution — 2.0%
Arrow Electronics, Inc.†		271,095		17,846,184
Avnet, Inc.		40,802		1,700,627
				19,546,811
Engineering/R&D Services — 0.2%
Fluor Corp.		37,776		1,960,574
Entertainment Software — 1.3%
Activision Blizzard, Inc.		205,359		8,495,702
NetEase, Inc. ADR		20,269		4,296,420
				12,792,122
Finance - Auto Loans — 0.2%
Ally Financial, Inc.		82,521		1,653,721
Finance - Consumer Loans — 0.5%
Navient Corp.		231,176		3,324,311
SLM Corp.†		272,645		2,021,663
				5,345,974
Finance - Credit Card — 1.1%
Alliance Data Systems Corp.†		12,905		2,640,105
Discover Financial Services		140,755		8,445,300
				11,085,405
Finance - Investment Banker/Broker — 2.0%
Charles Schwab Corp.		59,513		1,872,279
Raymond James Financial, Inc.		178,450		10,380,436
TD Ameritrade Holding Corp.		233,252		7,665,827
				19,918,542

Security Description	Shares		Value (Note 2)
Finance - Other Services — 0.5%
SEI Investments Co.		106,653	$	4,916,703
Food - Flour & Grain — 0.6%
Post Holdings, Inc.†		69,259		5,871,778
Food - Misc./Diversified — 0.9%
Ingredion, Inc.		64,546		8,840,220
Gas - Distribution — 1.2%
UGI Corp.		275,362		12,523,464
Home Decoration Products — 0.7%
Newell Brands, Inc.		126,699		6,725,183
Human Resources — 1.1%
ManpowerGroup, Inc.		63,838		4,561,863
Robert Half International, Inc.		158,320		6,068,406
				10,630,269
Instruments - Controls — 0.3%
Sensata Technologies Holding NV†		90,441		3,443,993
Insurance Brokers — 1.5%
Aon PLC		76,841		8,556,245
Marsh & McLennan Cos., Inc.		88,947		6,015,486
				14,571,731
Insurance - Life/Health — 2.2%
CNO Financial Group, Inc.		187,362		3,044,632
Torchmark Corp.		58,060		3,755,321
Unum Group		414,275		14,752,333
				21,552,286
Insurance - Multi-line — 1.0%
Allstate Corp.		83,962		5,790,019
Loews Corp.		93,593		3,917,803
				9,707,822
Insurance - Property/Casualty — 2.5%
Alleghany Corp.†		13,044		6,994,193
Hanover Insurance Group, Inc.		46,708		3,652,565
WR Berkley Corp.		68,791		4,084,122
XL Group, Ltd.		295,452		10,113,322
				24,844,202
Insurance - Reinsurance — 2.2%
Argo Group International Holdings, Ltd.		67,735		3,843,284
Reinsurance Group of America, Inc.		168,281		18,059,917
				21,903,201
Medical Instruments — 1.3%
Boston Scientific Corp.†		264,748		6,306,297
Bruker Corp.		62,039		1,387,192
St. Jude Medical, Inc.		63,082		4,915,350
				12,608,839
Medical Labs & Testing Services — 0.8%
ICON PLC†		43,199		3,317,251
Laboratory Corp. of America Holdings†		33,628		4,604,682
				7,921,933
Medical Products — 1.2%
Becton Dickinson and Co.		28,304		5,015,752
Zimmer Biomet Holdings, Inc.		53,978		6,996,088
				12,011,840
Medical - Drugs — 0.3%
Endo International PLC†		152,604		3,158,903

61

VALIC Company II Mid Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares			Value (Note 2)
COMMON STOCKS (continued)
Medical - Generic Drugs — 0.2%
Perrigo Co. PLC#		18,457		$	1,679,402
Medical - Hospitals — 0.4%
Acadia Healthcare Co., Inc.†#		86,278			4,416,571
Medical - Wholesale Drug Distribution — 0.4%
Cardinal Health, Inc.		53,298			4,246,252
Metal Processors & Fabrication — 0.2%
Timken Co.		65,649			2,223,532
Motorcycle/Motor Scooter — 0.3%
Harley-Davidson, Inc.		48,343			2,547,676
Multimedia — 0.3%
Quebecor, Inc., Class B		96,255			2,944,020
Office Supplies & Forms — 0.2%
Avery Dennison Corp.		27,840			2,155,930
Oil Companies - Exploration & Production — 8.2%
Anadarko Petroleum Corp.		24,574			1,313,972
Cimarex Energy Co.		10,233			1,352,598
Cobalt International Energy, Inc.†#		453,165			543,798
Diamondback Energy, Inc.†		203,826			19,414,426
Energen Corp.		230,973			13,280,948
EQT Corp.		69,033			4,935,860
Gulfport Energy Corp.†		41,319			1,181,723
Marathon Oil Corp.		308,500			4,633,670
Newfield Exploration Co.†		339,465			14,719,202
Parsley Energy, Inc., Class A†		205,984			6,972,558
QEP Resources, Inc.		393,200			7,510,120
Rice Energy, Inc.†		67,266			1,769,096
RSP Permian, Inc.†		96,838			3,781,524
					81,409,495
Oil Refining & Marketing — 0.4%
HollyFrontier Corp.		42,293			1,094,543
Marathon Petroleum Corp.		73,678			3,132,052
					4,226,595
Oil - Field Services — 0.1%
Trican Well Service, Ltd.†#		374,415			610,987
Physicians Practice Management — 0.6%
Envision Healthcare Holdings, Inc.†		267,289	��		5,736,022
Power Converter/Supply Equipment — 1.5%
Generac Holdings, Inc.†		151,352			5,645,429
Hubbell, Inc.		85,006			9,207,000
					14,852,429
Publishing - Books — 0.2%
John Wiley & Sons, Inc., Class A		35,809			2,081,577
Real Estate Investment Trusts — 9.5%
American Assets Trust, Inc.		133,483			5,913,297
American Homes 4 Rent, Class A		108,800			2,379,456
Blackstone Mortgage Trust, Inc., Class A		31,524			940,046
Boston Properties, Inc.		53,069			7,436,559
Douglas Emmett, Inc.		90,013			3,380,888
Equity LifeStyle Properties, Inc.		83,035			6,437,704
Equity Residential		68,998			4,475,900
Essex Property Trust, Inc.		12,293			2,791,740
Extra Space Storage, Inc.		49,573			3,993,105
Forest City Realty Trust, Inc., Class A		177,889			4,208,854
General Growth Properties, Inc.		88,069			2,566,331
Kilroy Realty Corp.		31,665			2,299,829
Kimco Realty Corp.		175,288			5,267,404
LaSalle Hotel Properties		169,242			4,748,931
Life Storage, Inc.		44,242			3,981,780

Security Description	Shares		Value (Note 2)
Real Estate Investment Trusts (continued)
Macerich Co.		34,750	$	2,845,677
PS Business Parks, Inc.		67,295		7,454,940
Regency Centers Corp.		93,342		7,517,765
SL Green Realty Corp.		75,263		8,859,960
STORE Capital Corp.		230,448		6,828,174
				94,328,340
Recreational Vehicles — 0.6%
Brunswick Corp.		121,183		5,573,206
Rental Auto/Equipment — 0.7%
Herc Holdings, Inc.†		36,958		1,249,550
Hertz Global Holdings, Inc.†		124,955		6,155,283
				7,404,833
Retail - Apparel/Shoe — 0.5%
DSW, Inc., Class A		219,067		5,246,655
Retail - Consumer Electronics — 0.3%
Best Buy Co., Inc.		77,343		2,976,159
Retail - Restaurants — 0.3%
Bloomin’ Brands, Inc.		167,874		3,280,258
Retirement/Aged Care — 0.2%
Brookdale Senior Living, Inc.†		139,978		2,409,021
Rubber - Tires — 0.5%
Goodyear Tire & Rubber Co.		186,733		5,480,614
Savings & Loans/Thrifts — 0.4%
Provident Financial Services, Inc.		194,115		4,187,061
Shipbuilding — 0.9%
Huntington Ingalls Industries, Inc.		56,441		9,322,360
Steel - Producers — 0.3%
Steel Dynamics, Inc.		126,331		3,110,269
Television — 0.1%
TEGNA, Inc.		55,510		1,124,633
Tools - Hand Held — 0.8%
Stanley Black & Decker, Inc.		61,480		7,608,150
Transport - Rail — 0.7%
Genesee & Wyoming, Inc., Class A†		98,902		6,724,347
Transport - Services — 0.4%
Ryder System, Inc.		67,926		4,450,512
Transport - Truck — 0.5%
Knight Transportation, Inc.		172,914		4,858,882
Total Long-Term Investment Securities
(cost $862,420,831)				979,746,744
SHORT-TERM INVESTMENT SECURITIES — 2.4%
Registered Investment Companies — 2.4%
State Street Institutional Liquid Reserves Fund Administration Class 0.17%(2)		12,266,900		12,266,900
State Street Navigator Securities Lending Prime Portfolio 0.43%(1)(2)		11,879,715		11,879,715
Total Short-Term Investment Securities
(cost $24,146,615)				24,146,615

62

VALIC Company II Mid Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount			Value (Note 2)
REPURCHASE AGREEMENTS — 0.8%
Agreement with State Street Bank and Trust Co., bearing interest at 0.01%, dated 08/31/2016, to be repurchased 09/01/2016 in the amount of $7,508,002 collateralized by $7,050,000 of United States Treasury Notes, bearing interest at 3.13% due 05/15/2021 and having an approximate value of $7,735,937 (cost $7,508,000)	$	7,508,000		$	7,508,000
TOTAL INVESTMENTS
(cost $894,075,446)(3)		101.4	%		1,011,401,359
Liabilities in excess of other assets		(1.4	)		(13,825,174	)
NET ASSETS		100.0	%	$	997,576,185

† Non-income producing security

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

(1) At August 31, 2016, the Fund had loaned securities with a total value of $11,372,487. This was secured by collateral of $11,879,715, which was received in cash and subsequently invested in short-term investments currently valued at $11,879,715 as reported in the Portfolio of Investments.

(2) The rate shown is a 7-day yield as of August 31, 2016.

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

ADR—American Depository Receipt

SDR—Swedish Depository Receipt

The following is a summary of the inputs used to value the Fund’s net assets as of August 31, 2016 (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	$	979,746,744	$	—	$	—	$	979,746,744
Short-Term Investment Securities		24,146,615		—		—		24,146,615
Repurchase Agreements		—		7,508,000		—		7,508,000
Total Investments at Value	$	991,626,459	$	7,508,000	$	—	$	1,011,401,359

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

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no material transfers between Levels during the reporting period.

At the beginning of the reporting period, Level 3 investments were not considered a material portion of the Fund. There were no Level 3 investments at the end of the reporting period.

See Notes to Financial Statements

63

VALIC Company II Moderate Growth Lifestyle Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Domestic Fixed Income Investment Companies	40.5	%
Domestic Equity Investment Companies	35.7
International Equity Investment Companies	14.1
Real Estate Investment Companies	9.4
International Fixed Income Investment Companies	0.1
	99.8	%

* Calculated as a percentage of net assets

64

VALIC Company II Moderate Growth Lifestyle Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Shares		Value (Note 2)
AFFILIATED REGISTERED INVESTMENT COMPANIES#(1) — 99.8%
Domestic Equity Investment Companies — 35.7%
VALIC Co. I Blue Chip Growth Fund		952,326	$	15,199,126
VALIC Co. I Dividend Value Fund		1,899,328		22,867,915
VALIC Co. I Mid Cap Index Fund		1,334,926		34,948,351
VALIC Co. I Mid Cap Strategic Growth Fund		358,724		4,731,566
VALIC Co. I Nasdaq-100 Index Fund		703,028		7,374,763
VALIC Co. I Science & Technology Fund		300,085		6,862,935
VALIC Co. I Small Cap Index Fund		2,268,249		43,777,211
VALIC Co. I Small Cap Special Values Fund		1,641,580		21,192,799
VALIC Co. I Stock Index Fund		611,420		21,075,631
VALIC Co. I Value Fund		276,498		4,274,657
VALIC Co. II Capital Appreciation Fund		1,229,003		19,651,753
VALIC Co. II Large Cap Value Fund		710,335		13,077,261
VALIC Co. II Mid Cap Growth Fund		656,033		5,523,801
VALIC Co. II Mid Cap Value Fund		2,384,516		48,763,345
VALIC Co. II Small Cap Growth Fund		550,994		7,824,110
VALIC Co. II Small Cap Value Fund		1,848,271		25,081,035
Total Domestic Equity Investment Companies
(cost $281,206,723)				302,226,259
Domestic Fixed Income Investment Companies — 40.5%
VALIC Co. I Capital Conservation Fund		2,351,781		23,964,652
VALIC Co. I Government Securities Fund		1,145,964		12,651,446
VALIC Co. I Inflation Protected Fund		763,530		8,429,373
VALIC Co. II Core Bond Fund		8,280,591		93,570,680
VALIC Co. II High Yield Bond Fund		12,036,830		91,118,805
VALIC Co. II Strategic Bond Fund		10,018,514		113,109,023
Total Domestic Fixed Income Investment Companies
(cost $340,584,859)				342,843,979

Security Description	Shares			Value (Note 2)
International Equity Investment Companies — 14.1%
VALIC Co. I Emerging Economies Fund		1,359,683		$	9,422,600
VALIC Co. I Foreign Value Fund		3,167,539			29,489,789
VALIC Co. I International Equities Index Fund		6,024,941			38,077,630
VALIC Co. I International Growth Fund		2,010,517			23,502,940
VALIC Co. II International Opportunities Fund		1,193,186			19,079,039
Total International Equity Investment Companies
(cost $126,912,608)					119,571,998
International Fixed Income Investment Companies — 0.1%
VALIC Co. I International Government Bond Fund
(cost $821,843)		70,502			840,378
Real Estate Investment Companies — 9.4%
VALIC Co. I Global Real Estate Fund
(cost $79,066,079)		9,502,147			80,198,117
TOTAL INVESTMENTS
(cost $828,592,112)(2)		99.8	%		845,680,731
Other assets less liabilities		0.2			1,293,173
NET ASSETS		100.0	%	$	846,973,904

# The Moderate Growth Lifestyle Fund invests in various VALIC Company I or VALIC Company II Funds, some of which are not presented in this report. Additional information on the underlying funds including such fund’s prospectuses and shareholder reports is available at our website, www.valic.com

(1) See Note 3

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

The following is a summary of the inputs used to value the Fund’s net assets as of August 31, 2016 (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	$	845,680,731	$	—	$	—	$	845,680,731

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

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.

See Notes to Financial Statements

65

VALIC Company II Money Market II Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation†

U.S. Government Agencies	82.0	%
U.S. Government Treasuries	11.4
Foreign Bank	4.2
Repurchase Agreements	3.4
	101.0	%

Credit Quality@#

A-1+	92.4	%
A-1	7.6
	100.0	%

† Calculated as a percentage of net assets.

@ Source: Standard & Poor's

# Calculated as a percentage of total debt issues.

Weighted Average days to Maturity — 31.2 days

66

VALIC Company II Money Market II Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Principal Amount		Value (Note 2)
SHORT-TERM INVESTMENT SECURITIES — 97.6%
Commercial Paper — 4.2%
BNP Paribas SA NY 0.39% due 09/01/2016 (amortized cost $6,000,000)	$	6,000,000	$	6,000,000
U.S. Government Agencies — 82.0%
Federal Farm Credit Bank
0.44% due 09/19/2016 FRS		100,000		99,996
0.45% due 11/09/2016 FRS		3,300,000		3,299,938
0.48% due 02/21/2017 FRS		1,000,000		999,728
0.50% due 12/19/2016 FRS		250,000		249,997
0.50% due 03/27/2017 FRS		1,000,000		999,810
0.51% due 10/24/2016 FRS		650,000		650,045
0.51% due 02/06/2017 FRS		200,000		200,079
0.52% due 10/19/2016 FRS		3,250,000		3,249,981
0.52% due 01/03/2017 FRS		650,000		649,913
0.53% due 09/19/2016 FRS		2,900,000		2,900,015
0.53% due 10/20/2016 FRS		5,500,000		5,500,095
0.54% due 03/29/2017 FRS		5,350,000		5,348,432
0.55% due 02/13/2017 FRS		1,550,000		1,549,690
0.57% due 05/24/2017 FRS		3,500,000		3,500,000
0.59% due 02/16/2017 FRS		3,150,000		3,150,147
Federal Home Loan Bank
0.25% due 09/06/2016		1,500,000		1,499,948
0.30% due 10/13/2016		2,500,000		2,499,140
0.30% due 10/24/2016		3,500,000		3,498,454
0.33% due 09/06/2016		3,250,000		3,249,851
0.33% due 09/14/2016		1,250,000		1,249,853
0.34% due 09/14/2016		3,500,000		3,499,573
0.40% due 10/03/2016		3,000,000		2,998,933
0.41% due 03/16/2017 FRS		5,500,000		5,499,832
0.46% due 09/02/2016		1,000,000		999,987
0.48% due 11/03/2016 FRS		3,450,000		3,450,000
0.49% due 10/07/2016 FRS		350,000		350,013
0.49% due 11/16/2016 FRS		3,700,000		3,700,000
0.50% due 11/25/2016 FRS		3,650,000		3,650,000
0.51% due 09/07/2016		3,200,000		3,199,728
0.51% due 01/27/2017 FRS		4,700,000		4,700,256
0.52% due 05/05/2017		750,000		747,335
0.53% due 02/27/2017 FRS		3,000,000		2,999,922
0.53% due 04/25/2017 FRS		3,350,000		3,350,241
0.53% due 08/04/2017 FRS		3,000,000		3,000,000
0.57% due 10/26/2016 FRS		3,250,000		3,249,979
0.58% due 08/22/2017 FRS		2,000,000		2,000,000
0.60% due 09/16/2016 FRS		1,500,000		1,499,996

Security Description	��	Principal Amount			Value (Note 2)
U.S. Government Agencies (continued)
Federal Home Loan Mtg. Corp.
0.32% due 11/29/2016		$	5,000,000		$	4,996,044
0.39% due 12/14/2016			3,250,000			3,246,338
0.49% due 09/20/2016			3,250,000			3,249,160
0.51% due 01/13/2017 FRS			1,900,000			1,899,641
0.64% due 07/21/2017 FRS			1,500,000			1,501,271
1.00% due 06/29/2017			1,600,000			1,605,133
Federal National Mtg. Assoc.
0.28% due 09/01/2016			112,000			112,000
0.33% due 11/16/2016			2,000,000			1,998,607
0.44% due 02/15/2017			4,000,000			3,991,836
Total U.S. Government Agencies
(amortized cost $115,840,937)						115,840,937
U.S. Government Treasuries — 11.4%
United States Treasury Bills
0.26% due 09/08/2016			8,000,000			7,999,604
0.27% due 09/22/2016			5,000,000			4,999,227
United States Treasury Notes
3.00% due 09/30/2016			3,050,000			3,055,932
Total U.S. Government Treasuries
(amortized cost $16,054,763)						16,054,763
Total Short-Term Investment Securities — 97.6%
(amortized cost $137,895,700)						137,895,700
REPURCHASE AGREEMENTS — 3.4%
State Street Bank and Trust Co. Joint Repurchase Agreement(1) (cost $4,804,000)			4,804,000			4,804,000
TOTAL INVESTMENTS
(amortized cost $142,699,700)(2)			101.0	%		142,699,700
Liabilities in excess of other assets			(1.0	)		(1,408,977	)
NET ASSETS			100.0	%	$	141,290,723

(1) See Note 2 for details of Joint Repurchase Agreements.

(2) 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 August 31, 2016 and unless noted otherwise, the dates shown are the original maturity dates.

The following is a summary of the inputs used to value the Fund’s net assets as of August 31, 2016 (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	$	—	$	137,895,700	$	—	$	137,895,700
Repurchase Agreements		—		4,804,000		—		4,804,000
Total Investments at Value	$	—	$	142,699,700	$	—	$	142,699,700

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

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.

See Notes to Financial Statements

67

VALIC Company II Small Cap Growth Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Registered Investment Companies	14.8	%
Medical — Biomedical/Gene	7.6
Enterprise Software/Service	7.2
Electronic Components — Semiconductors	5.3
Building & Construction Products — Misc.	3.6
Medical — Drugs	3.0
Distribution/Wholesale	2.8
Applications Software	2.8
Computer Software	2.4
Retail — Automobile	2.4
Medical — Hospitals	2.1
Medical Products	2.1
Educational Software	2.0
Retail — Apparel/Shoe	2.0
Time Deposits	1.7
Transport — Truck	1.7
Banks — Commercial	1.5
Therapeutics	1.5
Building Products — Doors & Windows	1.4
Casino Hotels	1.4
E-Services/Consulting	1.3
Oil Companies — Exploration & Production	1.3
E-Commerce/Services	1.3
Investment Management/Advisor Services	1.3
Entertainment Software	1.3
Real Estate Investment Trusts	1.3
Finance — Investment Banker/Broker	1.2
Miscellaneous Manufacturing	1.2
Building Products — Air & Heating	1.2
Internet Application Software	1.2
Semiconductor Equipment	1.2
Medical — HMO	1.2
Medical Imaging Systems	1.2
Machinery — General Industrial	1.2
Aerospace/Defense — Equipment	1.2
Web Hosting/Design	1.1
Real Estate Management/Services	1.1
Building Products — Cement	1.1
Resorts/Theme Parks	1.1
Internet Telephone	1.1
Drug Delivery Systems	1.1
Retail — Restaurants	1.0
Commercial Services	1.0
Footwear & Related Apparel	1.0
Machinery — Pumps	1.0
E-Commerce/Products	0.9
Steel Pipe & Tube	0.9
Retail — Discount	0.9
Electric Products — Misc.	0.9
Diversified Manufacturing Operations	0.9
Food — Wholesale/Distribution	0.8
Patient Monitoring Equipment	0.8
Advanced Materials	0.8
Diagnostic Equipment	0.8
Retail — Convenience Store	0.8
Retail — Misc./Diversified	0.8
Building — Residential/Commercial	0.7
Food — Retail	0.7
Retail —Pet Food & Supplies	0.7
Investment Companies	0.7
Auto Repair Centers	0.6
Telecom Equipment — Fiber Optics	0.5
Lighting Products & Systems	0.5
Savings & Loans/Thrifts	0.5
Retail — Building Products	0.5
Computers — Memory Devices	0.4
Retail — Vitamins & Nutrition Supplements	0.4

Food — Misc./Diversified	0.4
Oil Refining & Marketing	0.4
Healthcare Safety Devices	0.1
	114.9	%

* Calculated as a percentage of net assets

68

VALIC Company II Small Cap Growth Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Shares		Value (Note 2)
COMMON STOCKS — 98.4%
Advanced Materials — 0.8%
Hexcel Corp.		17,867	$	801,335
Aerospace/Defense - Equipment — 1.2%
HEICO Corp.		17,125		1,163,815
Applications Software — 2.8%
HubSpot, Inc.†		15,835		882,643
Imperva, Inc.†		16,442		740,055
Paycom Software, Inc.†#		14,018		719,684
Tableau Software, Inc., Class A†		7,039		408,473
				2,750,855
Auto Repair Centers — 0.6%
Monro Muffler Brake, Inc.		10,349		583,787
Banks - Commercial — 1.5%
Signature Bank†		4,577		558,440
Texas Capital Bancshares, Inc.†		18,735		983,962
				1,542,402
Building & Construction Products - Misc. — 3.6%
Caesarstone, Ltd.†		20,309		798,550
Fortune Brands Home & Security, Inc.		14,035		892,064
Summit Materials, Inc., Class A†		32,847		648,400
Trex Co., Inc.†		20,921		1,295,847
				3,634,861
Building Products - Air & Heating — 1.2%
Lennox International, Inc.		7,619		1,227,192
Building Products - Cement — 1.1%
Eagle Materials, Inc.		13,860		1,113,928
Building Products - Doors & Windows — 1.4%
Masonite International Corp.†		21,176		1,413,074
Building - Residential/Commercial — 0.7%
TRI Pointe Group, Inc.†		55,015		746,003
Casino Hotels — 1.4%
Boyd Gaming Corp.†		71,252		1,389,414
Commercial Services — 1.0%
CoStar Group, Inc.†		4,817		998,323
Computer Software — 2.4%
Cornerstone OnDemand, Inc.†		22,472		986,970
Envestnet, Inc.†		36,795		1,453,771
				2,440,741
Computers - Memory Devices — 0.4%
Nimble Storage, Inc.†#		49,538		407,202
Diagnostic Equipment — 0.8%
GenMark Diagnostics, Inc.†#		93,837		799,491
Distribution/Wholesale — 2.8%
G-III Apparel Group, Ltd.†		16,588		523,683
Pool Corp.		10,388		1,047,838
Watsco, Inc.		8,240		1,218,366
				2,789,887
Diversified Manufacturing Operations — 0.9%
Carlisle Cos., Inc.		8,104		849,785
Drug Delivery Systems — 1.1%
Nektar Therapeutics†		40,261		718,659
Revance Therapeutics, Inc.†#		23,355		328,138
				1,046,797
E-Commerce/Products — 0.9%
Wayfair, Inc., Class A†#		24,454		941,724

Security Description	Shares		Value (Note 2)
E-Commerce/Services — 1.3%
GrubHub, Inc.†#		32,228	$	1,307,490
E-Services/Consulting — 1.3%
Shopify, Inc.†#		32,031		1,324,802
Educational Software — 2.0%
2U, Inc.†		39,065		1,380,557
Instructure, Inc.†#		25,989		621,917
				2,002,474
Electric Products - Misc. — 0.9%
Littelfuse, Inc.		6,850		868,580
Electronic Components - Semiconductors — 5.3%
Cavium, Inc.†		25,049		1,394,728
Inphi Corp.†		29,993		1,291,799
MACOM Technology Solutions Holdings, Inc.†		26,568		1,094,602
Monolithic Power Systems, Inc.		20,184		1,548,516
				5,329,645
Enterprise Software/Service — 7.2%
Atlassian Corp. PLC, Class A†		26,659		785,907
Benefitfocus, Inc.†#		24,445		987,334
Evolent Health, Inc.†#		51,234		1,274,190
Guidewire Software, Inc.†		17,362		1,068,284
Proofpoint, Inc.†#		17,285		1,330,081
Tyler Technologies, Inc.†		3,410		559,069
Veeva Systems, Inc., Class A†		27,744		1,135,284
				7,140,149
Entertainment Software — 1.3%
Take-Two Interactive Software, Inc.†		29,283		1,272,932
Finance - Investment Banker/Broker — 1.2%
Evercore Partners, Inc., Class A		24,086		1,234,167
Food - Misc./Diversified — 0.4%
Snyder’s-Lance, Inc.		11,466		405,208
Food - Retail — 0.7%
Sprouts Farmers Market, Inc.†#		32,834		739,750
Food - Wholesale/Distribution — 0.8%
Performance Food Group Co.†		32,454		834,068
Footwear & Related Apparel — 1.0%
Wolverine World Wide, Inc.		40,949		979,091
Healthcare Safety Devices — 0.1%
Unilife Corp.†#		36,964		106,087
Internet Application Software — 1.2%
Zendesk, Inc.†		40,125		1,225,417
Internet Telephone — 1.1%
RingCentral, Inc.†		48,071		1,055,158
Investment Companies — 0.7%
PennantPark Investment Corp.		84,274		671,664
Investment Management/Advisor Services — 1.3%
Financial Engines, Inc.#		31,186		997,016
WisdomTree Investments, Inc.#		26,955		283,028
				1,280,044
Lighting Products & Systems — 0.5%
Acuity Brands, Inc.		1,876		516,125
Machinery - General Industrial — 1.2%
Middleby Corp.†		9,176		1,175,904
Machinery - Pumps — 1.0%
Graco, Inc.		13,231		974,728

69

VALIC Company II Small Cap Growth Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Medical Imaging Systems — 1.2%
Novadaq Technologies, Inc.†		96,476	$	1,182,796
Medical Products — 2.1%
K2M Group Holdings, Inc.†#		43,048		685,324
Nevro Corp.†		12,626		1,192,273
Syneron Medical, Ltd.†		28,206		185,032
				2,062,629
Medical - Biomedical/Gene — 7.6%
Acceleron Pharma, Inc.†		17,266		518,153
Arrowhead Pharmaceuticals, Inc.†		50,662		351,088
Bellicum Pharmaceuticals, Inc.†#		39,404		678,537
Coherus Biosciences, Inc.†#		32,284		961,095
Exact Sciences Corp.†#		45,898		847,736
Halozyme Therapeutics, Inc.†		73,134		716,713
Insmed, Inc.†		35,668		461,900
Kite Pharma, Inc.†#		16,203		933,617
REGENXBIO, Inc.†		14,961		175,193
Sage Therapeutics, Inc.†#		15,799		587,249
Spark Therapeutics, Inc.†		11,735		663,966
Ultragenyx Pharmaceutical, Inc.†#		5,724		377,326
Versartis, Inc.†		25,667		318,271
				7,590,844
Medical - Drugs — 3.0%
ACADIA Pharmaceuticals, Inc.†#		12,336		396,356
FibroGen, Inc.†		19,518		337,857
Horizon Pharma PLC†		64,945		1,220,966
Ignyta, Inc.†		42,897		236,362
TherapeuticsMD, Inc.†#		109,355		752,362
				2,943,903
Medical - HMO — 1.2%
WellCare Health Plans, Inc.†		10,671		1,202,622
Medical - Hospitals — 2.1%
Acadia Healthcare Co., Inc.†		21,911		1,121,624
Surgical Care Affiliates, Inc.†		24,106		994,373
				2,115,997
Miscellaneous Manufacturing — 1.2%
John Bean Technologies Corp.		17,898		1,229,235
Oil Companies - Exploration & Production — 1.3%
Diamondback Energy, Inc.†		6,901		657,320
RSP Permian, Inc.†		16,909		660,297
				1,317,617
Oil Refining & Marketing — 0.4%
Delek US Holdings, Inc.		20,237		355,159
Patient Monitoring Equipment — 0.8%
Insulet Corp.†		19,418		821,964
Real Estate Investment Trusts — 1.3%
CubeSmart		20,792		572,404
Highwoods Properties, Inc.		13,197		699,969
				1,272,373
Real Estate Management/Services — 1.1%
RE/MAX Holdings, Inc., Class A		26,918		1,120,865
Resort/Theme Parks — 1.1%
Vail Resorts, Inc.		6,862		1,087,147
Retail - Apparel/Shoe — 2.0%
Burlington Stores, Inc.†		14,652		1,190,036
Kate Spade & Co.†		24,834		463,402

Security Description	Shares		Value (Note 2)
Retail - Apparel/Shoe (continued)
Tailored Brands, Inc.		24,719	$	325,796
				1,979,234
Retail - Automobile — 2.4%
Lithia Motors, Inc., Class A		13,666		1,131,135
Penske Automotive Group, Inc.		11,687		529,421
Rush Enterprises, Inc., Class A†		32,039		761,887
				2,422,443
Retail - Building Products — 0.5%
Tile Shop Holdings, Inc.†		29,730		462,301
Retail - Convenience Store — 0.8%
Casey’s General Stores, Inc.		5,932		778,931
Retail - Discount — 0.9%
Ollie’s Bargain Outlet Holdings, Inc.†#		36,311		923,026
Retail - Misc./Diversified — 0.8%
Sally Beauty Holdings, Inc.†		27,463		747,543
Retail - Pet Food & Supplies — 0.7%
Freshpet, Inc.†#		64,686		679,850
Retail - Restaurants — 1.0%
Texas Roadhouse, Inc.		22,825		1,010,463
Retail - Vitamins & Nutrition Supplements — 0.4%
Vitamin Shoppe, Inc.†		14,622		405,322
Savings & Loans/Thrifts — 0.5%
BofI Holding, Inc.†#		22,806		490,329
Semiconductor Equipment — 1.2%
MKS Instruments, Inc.		24,984		1,217,720
Steel Pipe & Tube — 0.9%
Advanced Drainage Systems, Inc.#		40,215		930,173
Telecom Equipment - Fiber Optics — 0.5%
Ciena Corp.†		24,813		532,239
Therapeutics — 1.5%
Axovant Sciences, Ltd.†#		22,526		369,652
Neurocrine Biosciences, Inc.†		11,903		576,819
Portola Pharmaceuticals, Inc.†		25,142		511,891
				1,458,362
Transport - Truck — 1.7%
Old Dominion Freight Line, Inc.†		15,270		1,086,155
XPO Logistics, Inc.†		16,870		603,946
				1,690,101
Web Hosting/Design — 1.1%
GoDaddy, Inc., Class A†#		35,195		1,139,615
Total Long-Term Investment Securities
(cost $87,869,670)				98,254,902
SHORT-TERM INVESTMENT SECURITIES — 16.5%
Registered Investment Companies — 14.8%
State Street Navigator Securities Lending Prime Portfolio 0.43%(1)(2)		14,796,294		14,796,294

70

VALIC Company II Small Cap Growth Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount			Value (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
Time Deposits — 1.7%
Euro Time Deposit with State Street Bank and Trust Co. 0.01% due 09/01/2016	$	1,734,000		$	1,734,000
Total Short-Term Investment Securities
(cost $16,530,294)					16,530,294
TOTAL INVESTMENTS
(cost $104,399,964)(3)		114.9	%		114,785,196
Liabilities in excess of other assets		(14.9	)		(14,901,612	)
NET ASSETS		100.0	%	$	99,883,584

† 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 August 31, 2016.

(2) At August 31, 2016, the Fund had loaned securities with a total value of $16,369,235. This was secured by collateral of $14,796,294 which was received in cash and subsequently invested in short-term investments currently valued at $14,796,294 as reported in the Portfolio of Investments. Additional collateral of $2,181,180 was received in the form of fixed income pooled securities, which the Fund cannot sell or repledge. The components of the fixed income pooled securities referenced above are as follows:

Securities	Coupon Range	Maturity Date Range	Value as of August 31, 2016
United States Treasury Bills	0.00%	09/15/2016 to 06/22/2017	$	113,264
United States Treasury Notes/Bonds	zero coupon to 8.13%	09/15/2016 to 05/15/2046		2,067,916

(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 August 31, 2016 (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	$	98,254,902	$	—	$	—	$	98,254,902
Short-Term Investment Securities:
Registered Investment Companies		14,796,294		—		—		14,796,294
Time Deposits		—		1,734,000		—		1,734,000
Total Investments at Value	$	113,051,196	$	1,734,000	$	—	$	114,785,196

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

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.

See Notes to Financial Statements

71

VALIC Company II Small Cap Value Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Banks — Commercial	13.8	%
Real Estate Investment Trusts	9.6
Repurchase Agreements	5.9
Registered Investment Companies	5.1
Oil Companies — Exploration & Production	3.8
Human Resources	2.8
Savings & Loans/Thrifts	2.6
Retail — Apparel/Shoe	2.3
Machinery — General Industrial	1.8
Electronic Components — Misc.	1.8
Electric — Integrated	1.6
Insurance — Reinsurance	1.6
Commercial Services — Finance	1.5
Food — Misc./Diversified	1.5
Transport — Truck	1.4
Medical — Biomedical/Gene	1.3
Gas — Distribution	1.2
Insurance — Property/Casualty	1.2
Finance — Investment Banker/Broker	1.1
Electronic Components — Semiconductors	1.1
Auction Houses/Art Dealers	1.0
Steel — Producers	1.0
Disposable Medical Products	0.9
Medical Products	0.9
Insurance — Life/Health	0.9
Consulting Services	0.9
Computers — Integrated Systems	0.9
Medical Instruments	0.9
Medical — Outpatient/Home Medical	0.8
Engineering/R&D Services	0.8
Transport — Marine	0.8
Web Hosting/Design	0.8
Computer Services	0.8
Resorts/Theme Parks	0.7
Satellite Telecom	0.7
Retail — Home Furnishings	0.7
Finance — Leasing Companies	0.7
Networking Products	0.6
Finance — Mortgage Loan/Banker	0.6
Physical Therapy/Rehabilitation Centers	0.6
Electronic Parts Distribution	0.6
Aerospace/Defense — Equipment	0.6
Food — Canned	0.6
Real Estate Operations & Development	0.6
Oil — Field Services	0.6
Entertainment Software	0.6
Energy — Alternate Sources	0.5
Office Furnishings — Original	0.5
Rubber — Tires	0.5
Finance — Consumer Loans	0.5
Office Supplies & Forms	0.5
Printing — Commercial	0.5
Containers — Metal/Glass	0.5
Investment Management/Advisor Services	0.5
Diversified Manufacturing Operations	0.5
Medical — HMO	0.5
Tobacco	0.4
Environmental Consulting & Engineering	0.4
Physicians Practice Management	0.4
Food — Flour & Grain	0.4
Machinery — Construction & Mining	0.4
Oil Field Machinery & Equipment	0.4
Power Converter/Supply Equipment	0.4
Auto/Truck Parts & Equipment — Replacement	0.4
Schools	0.4
Retail — Restaurants	0.4
Consumer Products — Misc.	0.4
Chemicals — Fibers	0.4
Retail — Leisure Products	0.4

Telecom Services	0.4
Oil & Gas Drilling	0.4
Financial Guarantee Insurance	0.4
Gambling (Non-Hotel)	0.4
Retail — Pawn Shops	0.4
Auto — Truck Trailers	0.3
Semiconductor Components — Integrated Circuits	0.3
Diversified Financial Services	0.3
Water	0.3
Medical — Drugs	0.3
Hotels/Motels	0.3
Chemicals — Diversified	0.3
Paper & Related Products	0.3
Diversified Minerals	0.3
Retail — Hair Salons	0.3
Insurance — Multi-line	0.3
Auto/Truck Parts & Equipment — Original	0.3
Data Processing/Management	0.3
Distribution/Wholesale	0.3
Chemicals — Specialty	0.3
Telephone — Integrated	0.2
Independent Power Producers	0.2
Security Services	0.2
Travel Services	0.2
Banks — Mortgage	0.2
Semiconductor Equipment	0.2
Food — Wholesale/Distribution	0.2
Computers	0.2
Electric — Generation	0.2
Airlines	0.2
Containers — Paper/Plastic	0.2
Retail — Jewelry	0.2
Engines — Internal Combustion	0.2
Transport — Services	0.2
Wireless Equipment	0.2
Machinery — Farming	0.2
Medical — Wholesale Drug Distribution	0.2
Radio	0.1
Footwear & Related Apparel	0.1
E-Commerce/Services	0.1
Transport — Equipment & Leasing	0.1
Retail — Regional Department Stores	0.1
Transport — Air Freight	0.1
Diagnostic Kits	0.1
Wire & Cable Products	0.1
Applications Software	0.1
Respiratory Products	0.1
Therapeutics	0.1
Housewares	0.1
Investment Companies	0.1
Medical — Hospitals	0.1
Computers — Memory Devices	0.1
Telecommunication Equipment	0.1
Electronic Design Automation	0.1
Industrial Automated/Robotic	0.1
Enterprise Software/Service	0.1
Chemicals — Other	0.1
Commercial Services	0.1
Medical — Generic Drugs	0.1
Food — Catering	0.1
	105.0	%

* Calculated as a percentage of net assets

72

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Shares		Value (Note 2)
COMMON STOCKS — 94.0%
Aerospace/Defense - Equipment — 0.6%
AAR Corp.		39,400	$	969,634
Curtiss-Wright Corp.		14,200		1,276,580
Moog, Inc., Class A†		15,100		890,749
				3,136,963
Airlines — 0.2%
Alaska Air Group, Inc.		14,700		992,691
Applications Software — 0.1%
Progress Software Corp.†		14,500		420,645
Auction Houses/Art Dealers — 1.0%
KAR Auction Services, Inc.		126,050		5,329,394
Auto - Truck Trailers — 0.3%
Wabash National Corp.†		127,200		1,774,440
Auto/Truck Parts & Equipment-Original — 0.3%
Dana, Inc.		102,200		1,473,724
Auto/Truck Parts & Equipment-Replacement — 0.4%
Douglas Dynamics, Inc.		62,500		2,005,000
Banks - Commercial — 13.8%
1st Source Corp.		19,020		673,118
American National Bankshares, Inc.		1,100		29,447
BancFirst Corp.		11,340		777,924
BancorpSouth, Inc.		65,800		1,638,420
Bank of Hawaii Corp.#		28,780		2,073,311
Banner Corp.		10,800		478,224
Bryn Mawr Bank Corp.		5,400		173,718
Capital Bank Financial Corp., Class A		40,900		1,280,579
Cascade Bancorp†		14,601		87,898
Cathay General Bancorp		143,090		4,495,888
Central Pacific Financial Corp.		85,200		2,180,268
Central Valley Community Bancorp		4,300		66,048
Century Bancorp, Inc., Class A		1,418		62,222
Citizens & Northern Corp.		3,400		73,508
City Holding Co.		25,500		1,290,045
CoBiz Financial, Inc.		8,100		106,353
Columbia Banking System, Inc.		9,573		316,292
Community Bank System, Inc.		23,880		1,133,106
Community Trust Bancorp, Inc.		21,518		793,154
Customers Bancorp, Inc.†		29,600		791,504
East West Bancorp, Inc.		2,173		80,705
FCB Financial Holdings, Inc., Class A†		64,700		2,478,010
Financial Institutions, Inc.		12,200		327,936
First BanCorp†		224,800		1,101,520
First Bancorp		5,300		106,265
First Busey Corp.		23,226		542,327
First Citizens BancShares, Inc., Class A		1,440		410,270
First Commonwealth Financial Corp.		213,800		2,182,898
First Community Bancshares, Inc.		10,600		254,082
First Financial Bancorp		18,998		414,156
First Financial Bankshares, Inc.#		13,360		489,243
First Financial Corp.		3,700		151,256
First Hawaiian, Inc.†		17,000		451,860
First Interstate BancSystem, Inc., Class A		15,600		479,544
Fulton Financial Corp.		62,200		899,412
Glacier Bancorp, Inc.		112,600		3,371,244
Great Southern Bancorp, Inc.		6,500		273,585
Great Western Bancorp, Inc.		26,100		893,664
Guaranty Bancorp		8,000		147,840
Hancock Holding Co.		213,521		6,967,190
Heartland Financial USA, Inc.		1,640		59,565
Heritage Financial Corp.		4,239		78,337
Hope Bancorp, Inc.		138,927		2,389,544
Independent Bank Corp.		3,700		60,347

Security Description	Shares		Value (Note 2)
Banks - Commercial (continued)
Kearny Financial Corp.		3,427	$	46,916
Lakeland Bancorp, Inc.		10,873		148,416
Lakeland Financial Corp.		7,370		264,141
MainSource Financial Group, Inc.		29,400		709,422
Mercantile Bank Corp.		3,300		88,440
OFG Bancorp#		99,100		1,081,181
Pacific Continental Corp.		13,800		227,700
PacWest Bancorp		27,400		1,186,694
Park Sterling Corp.		9,275		78,652
Preferred Bank		3,100		108,655
Republic Bancorp, Inc., Class A		3,400		108,834
S&T Bancorp, Inc.		3,880		111,550
Sandy Spring Bancorp, Inc.		4,700		148,191
Sierra Bancorp		3,020		55,055
Southside Bancshares, Inc.		13,346		438,416
Southwest Bancorp, Inc.		21,380		418,620
State Bank Financial Corp.		10,100		232,906
Stock Yards Bancorp, Inc.		3,350		106,899
Suffolk Bancorp		3,020		106,757
Tompkins Financial Corp.		6,948		513,666
TriState Capital Holdings, Inc.†		4,500		67,343
Trustmark Corp.		62,400		1,769,664
UMB Financial Corp.		32,960		2,003,968
Umpqua Holdings Corp.		103,814		1,704,626
Union Bankshares Corp.		70,719		1,968,110
Univest Corp. of Pennsylvania		2,129		49,691
Valley National Bancorp		13,316		128,499
Washington Trust Bancorp, Inc.		6,680		281,562
Webster Financial Corp.		126,570		4,889,399
West Bancorporation, Inc.		6,980		137,017
Westamerica Bancorporation#		60,524		3,077,040
Western Alliance Bancorp†		2,732		104,417
Zions Bancorporation		177,600		5,432,784
				70,927,058
Banks - Mortgage — 0.2%
Walker & Dunlop, Inc.†		40,900		1,083,850
Building & Construction Products - Misc. — 0.0%
Gibraltar Industries, Inc.†		4,180		159,509
Building & Construction - Misc. — 0.0%
Comfort Systems USA, Inc.		4,400		124,916
Chemicals - Diversified — 0.3%
Innophos Holdings, Inc.		26,600		1,123,052
Innospec, Inc.		7,900		468,312
				1,591,364
Chemicals - Fibers — 0.4%
Rayonier Advanced Materials, Inc.#		155,400		1,911,420
Chemicals - Other — 0.1%
American Vanguard Corp.		16,500		278,025
Chemicals - Specialty — 0.3%
Minerals Technologies, Inc.		18,360		1,295,665
Commercial Services — 0.1%
RPX Corp.†		26,100		273,267
Commercial Services - Finance — 1.5%
EVERTEC, Inc.		308,215		5,258,148
WEX, Inc.†		26,880		2,669,453
				7,927,601
Computer Aided Design — 0.0%
Aspen Technology, Inc.†		5,200		236,392

73

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Computer Services — 0.8%
Convergys Corp.		34,300	$	1,023,169
Insight Enterprises, Inc.†		35,900		1,098,540
Unisys Corp.†#		176,200		1,779,620
				3,901,329
Computers — 0.2%
Wincor Nixdorf AG ADR†		74,266		1,034,525
Computers - Integrated Systems — 0.9%
Diebold, Inc.		82,500		2,314,950
VeriFone Systems, Inc.†		108,500		2,154,810
				4,469,760
Computers - Memory Devices — 0.1%
Datalink Corp.†		36,700		357,458
Consulting Services — 0.9%
Franklin Covey Co.†		5,400		87,696
FTI Consulting, Inc.†		69,100		3,060,439
Huron Consulting Group, Inc.†		21,068		1,324,335
				4,472,470
Consumer Products - Misc. — 0.4%
Central Garden & Pet Co., Class A†		64,860		1,572,855
CSS Industries, Inc.		13,900		354,033
				1,926,888
Containers - Metal/Glass — 0.5%
Silgan Holdings, Inc.		52,500		2,526,300
Containers - Paper/Plastic — 0.2%
Graphic Packaging Holding Co.		64,410		923,639
Data Processing/Management — 0.3%
Fair Isaac Corp.		11,220		1,435,487
Diagnostic Kits — 0.1%
Quidel Corp.†#		30,100		655,277
Disposable Medical Products — 0.9%
STERIS PLC		68,295		4,827,091
Distribution/Wholesale — 0.3%
Essendant, Inc.		28,600		553,982
SiteOne Landscape Supply, Inc.†		5,000		191,200
Titan Machinery, Inc.†		53,600		574,056
				1,319,238
Diversified Financial Services — 0.3%
Ladder Capital Corp., Class A		128,500		1,706,480
Diversified Manufacturing Operations — 0.5%
Actuant Corp., Class A		82,500		1,965,975
Federal Signal Corp.		35,100		460,161
				2,426,136
Diversified Minerals — 0.3%
US Silica Holdings, Inc.		39,300		1,542,525
Drug Delivery Systems — 0.0%
Revance Therapeutics, Inc.†#		4,300		60,415
E-Commerce/Services — 0.1%
RetailMeNot, Inc.†		63,500		718,185
Electric Products-Misc. — 0.0%
Graham Corp.		3,000		57,330
Electric - Distribution — 0.0%
Spark Energy, Inc., Class A#		3,800		110,162
Electric - Generation — 0.2%
Atlantic Power Corp.#		392,900		1,013,682

Security Description	Shares		Value (Note 2)
Electric - Integrated — 1.6%
Avista Corp.		43,580	$	1,770,219
El Paso Electric Co.		52,200		2,385,018
NorthWestern Corp.		23,018		1,330,901
Portland General Electric Co.		58,000		2,442,380
Unitil Corp.		9,100		359,814
				8,288,332
Electronic Components - Misc. — 1.8%
Bel Fuse, Inc., Class B		18,775		431,262
Benchmark Electronics, Inc.†		117,421		2,832,194
Jabil Circuit, Inc.		159,000		3,369,210
Sanmina Corp.†		10,700		281,196
Stoneridge, Inc.†		27,200		471,376
Vishay Intertechnology, Inc.#		113,800		1,611,408
				8,996,646
Electronic Components - Semiconductors — 1.1%
Alpha & Omega Semiconductor, Ltd.†		50,900		1,072,463
Amkor Technology, Inc.†		131,400		1,195,740
InvenSense, Inc.†		121,600		904,704
IXYS Corp.		35,900		417,158
Rovi Corp.†		97,500		1,995,825
				5,585,890
Electronic Design Automation — 0.1%
Mentor Graphics Corp.		13,600		326,536
Electronic Parts Distribution — 0.6%
Tech Data Corp.†		42,400		3,147,776
Energy - Alternate Sources — 0.5%
REX American Resources Corp.†		34,100		2,743,004
Engineering/R&D Services — 0.8%
Argan, Inc.		6,300		301,203
EMCOR Group, Inc.		53,698		3,074,748
VSE Corp.		22,900		753,639
				4,129,590
Engines - Internal Combustion — 0.2%
Briggs & Stratton Corp.		47,200		897,272
Enterprise Software/Service — 0.1%
Benefitfocus, Inc.†#		7,300		294,847
Entertainment Software — 0.6%
Take-Two Interactive Software, Inc.†		66,700		2,899,449
Environmental Consulting & Engineering — 0.4%
Tetra Tech, Inc.		63,500		2,241,550
Finance - Consumer Loans — 0.5%
Encore Capital Group, Inc.†		97,000		2,091,320
Nelnet, Inc., Class A		15,900		562,860
				2,654,180
Finance - Investment Banker/Broker — 1.1%
Cowen Group, Inc., Class A†#		127,200		477,000
Investment Technology Group, Inc.		13,454		206,923
KCG Holdings, Inc., Class A†		129,600		1,872,720
Oppenheimer Holdings, Inc., Class A		8,000		128,560
Stifel Financial Corp.†		78,250		3,079,137
				5,764,340
Finance - Leasing Companies — 0.7%
Air Lease Corp.		113,700		3,340,506
Marlin Business Services Corp.		5,700		107,160
				3,447,666

74

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Finance - Mortgage Loan/Banker — 0.6%
Arlington Asset Investment Corp., Class A#		7,700	$	114,576
CoreLogic, Inc.†		72,150		2,959,593
FNFV Group†		11,700		150,813
				3,224,982
Financial Guarantee Insurance — 0.4%
MBIA, Inc.†		231,300		1,864,278
Food - Canned — 0.6%
TreeHouse Foods, Inc.†		32,800		3,107,144
Food - Catering — 0.1%
US Foods Holding Corp.†		10,200		247,350
Food - Dairy Products — 0.0%
Dean Foods Co.		10,300		177,263
Food - Flour & Grain — 0.4%
Post Holdings, Inc.†		25,400		2,153,412
Food - Misc./Diversified — 1.5%
Darling Ingredients, Inc.†		92,500		1,302,400
J&J Snack Foods Corp.		18,200		2,220,400
Snyder’s-Lance, Inc.		120,050		4,242,567
				7,765,367
Food - Retail — 0.0%
Smart & Final Stores, Inc.†#		10,500		134,190
Food - Wholesale/Distribution — 0.2%
Fresh Del Monte Produce, Inc.		7,500		436,275
SpartanNash Co.		18,900		605,178
				1,041,453
Footwear & Related Apparel — 0.1%
Iconix Brand Group, Inc.†#		86,000		722,400
Gambling (Non-Hotel) — 0.4%
Isle of Capri Casinos, Inc.†		107,180		1,859,573
Gas - Distribution — 1.2%
Northwest Natural Gas Co.		39,200		2,341,416
Southwest Gas Corp.		26,440		1,846,041
Spire, Inc.		31,300		2,025,110
				6,212,567
Hotels/Motels — 0.3%
La Quinta Holdings, Inc.†		142,100		1,641,255
Housewares — 0.1%
NACCO Industries, Inc., Class A		6,100		405,894
Human Resources — 2.8%
AMN Healthcare Services, Inc.†		47,780		1,731,069
Barrett Business Services, Inc.		27,800		1,297,148
Cross Country Healthcare, Inc.†		86,800		1,056,356
Korn/Ferry International		136,000		3,242,240
Resources Connection, Inc.		162,700		2,455,143
Team Health Holdings, Inc.†		103,400		3,443,220
TriNet Group, Inc.†		44,100		926,100
				14,151,276
Independent Power Producers — 0.2%
Dynegy, Inc.†		67,000		848,890
Ormat Technologies, Inc.		7,900		382,360
				1,231,250
Industrial Automated/Robotic — 0.1%
Hurco Cos., Inc.		11,300		305,213
Insurance - Life/Health — 0.9%
CNO Financial Group, Inc.		122,920		1,997,450

Security Description	Shares		Value (Note 2)
Insurance - Life/Health (continued)
Primerica, Inc.#		44,900	$	2,556,157
				4,553,607
Insurance - Multi-line — 0.3%
Horace Mann Educators Corp.		41,180		1,505,129
Insurance - Property/Casualty — 1.2%
Arch Capital Group, Ltd.†		6,026		487,744
Global Indemnity PLC†		2,000		57,700
Hallmark Financial Services, Inc.†		12,900		136,353
Navigators Group, Inc.		6,300		591,948
ProAssurance Corp.		30,880		1,699,018
Selective Insurance Group, Inc.		79,500		3,172,050
				6,144,813
Insurance - Reinsurance — 1.6%
Argo Group International Holdings, Ltd.		23,800		1,350,412
Endurance Specialty Holdings, Ltd.		61,000		4,016,850
Essent Group, Ltd.†		103,650		2,755,017
				8,122,279
Internet Application Software — 0.0%
Bazaarvoice, Inc.†		42,610		170,440
Investment Companies — 0.1%
Acacia Research Corp.		64,100		383,318
Investment Management/Advisor Services — 0.5%
Artisan Partners Asset Management, Inc., Class A		92,830		2,427,505
Leisure Games — 0.0%
Intrawest Resorts Holdings, Inc.†		7,000		104,440
Machine Tools & Related Products — 0.0%
Kennametal, Inc.		3,400		95,064
Machinery - Construction & Mining — 0.4%
Hyster-Yale Materials Handling, Inc.		7,260		375,560
Joy Global, Inc.		64,600		1,762,288
				2,137,848
Machinery - Farming — 0.2%
AGCO Corp.		16,760		813,530
Machinery - General Industrial — 1.8%
DXP Enterprises, Inc.†		28,400		797,756
IDEX Corp.		33,000		3,083,520
Kadant, Inc.		17,800		954,792
Zebra Technologies Corp., Class A†		62,700		4,386,492
				9,222,560
Medical Instruments — 0.9%
Halyard Health, Inc.†		40,000		1,458,000
Integra LifeSciences Holdings Corp.†		33,500		2,895,070
				4,353,070
Medical Products — 0.9%
Haemonetics Corp.†		61,250		2,276,050
Integer Holdings Corp.†		80,433		1,946,479
SurModics, Inc.†		16,300		464,061
				4,686,590
Medical - Biomedical/Gene — 1.3%
Acorda Therapeutics, Inc.†		10,200		245,616
Adverum Biotechnologies, Inc.†		1,300		4,654
AMAG Pharmaceuticals, Inc.†		11,500		274,045
Applied Genetic Technologies Corp.†		1,200		15,336
Ardelyx, Inc.†		36,700		365,899
Bio-Rad Laboratories, Inc., Class A†		16,500		2,455,365
Endocyte, Inc.†		76,000		226,480

75

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Medical - Biomedical/Gene (continued)
Epizyme, Inc.†		2,200	$	16,082
Five Prime Therapeutics, Inc.†		7,800		343,044
Idera Pharmaceuticals, Inc.†#		292,800		559,248
Insmed, Inc.†		7,400		95,830
Karyopharm Therapeutics, Inc.†#		1,000		9,950
MacroGenics, Inc.†		2,500		74,525
Medicines Co.†#		24,900		975,333
Rigel Pharmaceuticals, Inc.†		106,600		359,242
Sage Therapeutics, Inc.†#		900		33,453
Ultragenyx Pharmaceutical, Inc.†		2,000		131,840
Versartis, Inc.†		23,400		290,160
				6,476,102
Medical - Drugs — 0.3%
ACADIA Pharmaceuticals, Inc.†#		6,100		195,993
Immune Design Corp.†		2,500		17,625
MyoKardia, Inc.†#		34,200		748,296
NantKwest, Inc.†#		12,900		104,361
Radius Health, Inc.†#		11,000		603,240
				1,669,515
Medical - Generic Drugs — 0.1%
Amphastar Pharmaceuticals, Inc.†		14,100		267,900
Medical - HMO — 0.5%
Molina Healthcare, Inc.†		26,400		1,420,584
Triple-S Management Corp., Class B†		27,400		599,786
WellCare Health Plans, Inc.†		2,700		304,290
				2,324,660
Medical - Hospitals — 0.1%
Community Health Systems, Inc.†		34,100		364,188
Medical - Outpatient/Home Medical — 0.8%
Addus HomeCare Corp.†		10,800		258,984
Amsurg Corp.†		62,750		4,073,730
				4,332,714
Medical - Wholesale Drug Distribution — 0.2%
Owens & Minor, Inc.		22,900		787,073
Metal Products - Distribution — 0.0%
Olympic Steel, Inc.		9,700		187,501
Metal - Iron — 0.0%
Cliffs Natural Resources, Inc.†		20,000		114,000
MRI/Medical Diagnostic Imaging — 0.0%
Alliance HealthCare Services, Inc.†		3,588		22,604
Networking Products — 0.6%
Black Box Corp.		55,362		772,300
NETGEAR, Inc.†		28,100		1,601,700
Polycom, Inc.†		73,100		909,364
				3,283,364
Office Furnishings - Original — 0.5%
Steelcase, Inc., Class A		180,400		2,695,176
Office Supplies & Forms — 0.5%
ACCO Brands Corp.†		255,600		2,556,000
Oil & Gas Drilling — 0.4%
Atwood Oceanics, Inc.#		21,400		169,060
Parker Drilling Co.†		54,300		116,745
Seadrill, Ltd.†#		659,500		1,589,395
				1,875,200
Oil Companies - Exploration & Production — 3.8%
Bill Barrett Corp.†#		264,900		1,758,936

Security Description	Shares		Value (Note 2)
Oil Companies - Exploration & Production (continued)
Denbury Resources, Inc.#		331,500	$	1,021,020
Diamondback Energy, Inc.†		33,515		3,192,304
Eclipse Resources Corp.†#		72,300		246,543
Encana Corp.		215,150		2,052,531
EP Energy Corp., Class A†#		92,400		380,688
Jones Energy, Inc., Class A†#		36,800		101,936
Oasis Petroleum, Inc.†		207,500		1,967,100
RSP Permian, Inc.†		49,710		1,941,175
Sanchez Energy Corp.†#		68,600		589,274
Unit Corp.†		46,700		798,103
Whiting Petroleum Corp.†		215,980		1,574,494
WPX Energy, Inc.†		313,685		3,764,220
				19,388,324
Oil Field Machinery & Equipment — 0.4%
Forum Energy Technologies, Inc.†		120,270		2,113,144
Oil Refining & Marketing — 0.0%
Adams Resources & Energy, Inc.		700		25,970
Alon USA Energy, Inc.		16,100		131,698
				157,668
Oil - Field Services — 0.6%
Archrock, Inc.		7,000		77,140
MRC Global, Inc.†		93,500		1,371,645
Pioneer Energy Services Corp.†		229,940		765,700
SEACOR Holdings, Inc.†#		13,100		770,018
				2,984,503
Paper & Related Products — 0.3%
Domtar Corp.		17,440		650,861
Schweitzer-Mauduit International, Inc.		23,100		907,368
				1,558,229
Physical Therapy/Rehabilitation Centers — 0.6%
HealthSouth Corp.		78,989		3,215,642
Physicians Practice Management — 0.4%
Healthways, Inc.†		86,600		2,165,866
Power Converter/Supply Equipment — 0.4%
Advanced Energy Industries, Inc.†		46,300		2,034,885
Printing - Commercial — 0.5%
ARC Document Solutions, Inc.†		35,100		118,638
Ennis, Inc.		14,700		243,726
Quad/Graphics, Inc.		80,100		2,169,909
				2,532,273
Racetracks — 0.0%
Speedway Motorsports, Inc.		7,200		128,808
Radio — 0.1%
Entercom Communications Corp., Class A		39,440		540,723
Radio One, Inc., Class D†		46,400		160,544
Saga Communications, Inc., Class A		666		27,086
				728,353
Real Estate Investment Trusts — 9.6%
AG Mtg. Investment Trust, Inc.		16,500		261,030
American Assets Trust, Inc.		4,100		181,630
Apartment Investment & Management Co., Class A		34,579		1,562,279
ARMOUR Residential REIT, Inc.#		39,000		867,360
Ashford Hospitality Trust, Inc.		156,980		1,094,151
Capstead Mtg. Corp.		179,800		1,783,616
CBL & Associates Properties, Inc.		63,540		906,716
Cedar Realty Trust, Inc.		48,200		364,874
CoreSite Realty Corp.		14,600		1,139,092

76

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Real Estate Investment Trusts (continued)
CYS Investments, Inc.		339,900	$	2,994,519
DCT Industrial Trust, Inc.		59,360		2,891,426
DiamondRock Hospitality Co.		55,934		592,341
DuPont Fabros Technology, Inc.		12,200		517,280
EPR Properties		11,600		908,512
FelCor Lodging Trust, Inc.		124,700		886,617
First Industrial Realty Trust, Inc.		22,118		636,335
First Potomac Realty Trust		85,700		862,999
Franklin Street Properties Corp.		28,500		357,960
Getty Realty Corp.		25,646		603,450
Gladstone Commercial Corp.		12,800		230,400
Government Properties Income Trust#		80,000		1,864,000
Gramercy Property Trust		34,700		335,896
Highwoods Properties, Inc.		5,200		275,808
Hospitality Properties Trust		27,940		851,891
Hudson Pacific Properties, Inc.		99,600		3,333,612
InfraREIT, Inc.		37,300		704,970
Kite Realty Group Trust		21,300		615,144
LaSalle Hotel Properties		13,878		389,417
LTC Properties, Inc.		17,320		899,254
Mack-Cali Realty Corp.		22,300		619,048
Mid-America Apartment Communities, Inc.		2,477		232,813
Monogram Residential Trust, Inc.#		40,900		430,268
Outfront Media, Inc.		144,815		3,232,271
Parkway Properties, Inc.		237,500		4,275,000
Pebblebrook Hotel Trust#		22,500		675,900
Pennsylvania Real Estate Investment Trust		52,580		1,319,232
PennyMac Mortgage Investment Trust		209,500		3,192,780
Potlatch Corp.		32,200		1,219,414
PS Business Parks, Inc.		14,800		1,639,544
RAIT Financial Trust		80,900		254,026
RLJ Lodging Trust		55,700		1,300,038
Saul Centers, Inc.		2,100		139,188
Silver Bay Realty Trust Corp.		11,400		216,942
Sunstone Hotel Investors, Inc.		79,072		1,098,310
Taubman Centers, Inc.		2,400		186,408
Urstadt Biddle Properties, Inc., Class A		13,600		308,856
Washington Prime Group, Inc.†		1,053		14,468
Washington Real Estate Investment Trust		1,600		52,000
				49,319,085
Real Estate Operations & Development — 0.6%
Alexander & Baldwin, Inc.		24,200		971,146
Forestar Group, Inc.†#		79,600		998,980
St. Joe Co.†		57,300		1,082,397
				3,052,523
Resort/Theme Parks — 0.7%
SeaWorld Entertainment, Inc.		290,400		3,778,104
Respiratory Products — 0.1%
Inogen, Inc.†		7,100		411,942
Retail - Apparel/Shoe — 2.3%
Abercrombie & Fitch Co., Class A		115,200		2,043,648
Ascena Retail Group, Inc.†		484,550		3,944,237
Children’s Place, Inc.		33,850		2,755,390
Kate Spade & Co.†		160,608		2,996,945
				11,740,220
Retail - Building Products — 0.0%
At Home Group, Inc.†		2,500		38,125
Retail - Hair Salons — 0.3%
Regis Corp.†		120,600		1,515,942

Security Description	Shares		Value (Note 2)
Retail - Home Furnishings — 0.7%
Pier 1 Imports, Inc.#		767,000	$	3,535,870
Retail - Jewelry — 0.2%
Movado Group, Inc.		39,600		898,920
Retail - Leisure Products — 0.4%
Party City Holdco, Inc.†		108,700		1,893,554
Retail - Pawn Shops — 0.4%
Cash America International, Inc.		27,400		1,192,722
EZCORP, Inc., Class A†		59,400		614,790
				1,807,512
Retail - Regional Department Stores — 0.1%
Dillard’s, Inc., Class A		11,740		707,218
Retail - Restaurants — 0.4%
Bob Evans Farms, Inc.		21,000		861,000
Jack in the Box, Inc.		3,300		328,218
Ruby Tuesday, Inc.†		11,200		34,048
Ruth’s Hospitality Group, Inc.		47,972		717,661
				1,940,927
Rubber - Tires — 0.5%
Cooper Tire & Rubber Co.		78,700		2,675,013
Rubber/Plastic Products — 0.0%
Myers Industries, Inc.		9,658		138,592
Satellite Telecom — 0.7%
DigitalGlobe, Inc.†		126,900		3,437,721
Intelsat SA†#		36,900		99,630
				3,537,351
Savings & Loans/Thrifts — 2.6%
BankFinancial Corp.		4,200		51,828
Beneficial Bancorp, Inc.		157,758		2,378,991
Brookline Bancorp, Inc.		13,200		157,608
Charter Financial Corp.		46,000		604,900
First Defiance Financial Corp.		6,000		272,940
Flushing Financial Corp.		25,700		595,983
Investors Bancorp, Inc.		171,300		2,098,425
Meridian Bancorp, Inc.		57,800		902,836
Northfield Bancorp, Inc.		103,800		1,649,382
OceanFirst Financial Corp.		1,520		30,126
Oritani Financial Corp.		15,900		255,513
Sterling Bancorp		195,000		3,480,750
Territorial Bancorp, Inc.		2,800		79,968
United Financial Bancorp, Inc.		17,000		237,830
Waterstone Financial, Inc.		15,600		263,640
WSFS Financial Corp.		13,374		520,249
				13,580,969
Schools — 0.4%
DeVry Education Group, Inc.#		49,500		1,140,480
K12, Inc.†		71,200		850,840
				1,991,320
Security Services — 0.2%
Ascent Capital Group, Inc., Class A†		49,600		1,151,216
Seismic Data Collection — 0.0%
Geospace Technologies Corp.†#		5,900		104,253
Semiconductor Components - Integrated Circuits — 0.3%
Cypress Semiconductor Corp.		146,522		1,748,007
Semiconductor Equipment — 0.2%
Ultra Clean Holdings, Inc.†		13,100		95,237

77

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Semiconductor Equipment (continued)
Xcerra Corp.†		167,000	$	978,620
				1,073,857
Steel - Producers — 1.0%
AK Steel Holding Corp.†		211,800		944,628
Carpenter Technology Corp.		43,800		1,589,064
Ryerson Holding Corp.†		27,400		331,266
Schnitzer Steel Industries, Inc., Class A		35,100		659,178
Worthington Industries, Inc.		41,040		1,760,616
				5,284,752
Telecom Services — 0.4%
EarthLink Holdings Corp.		54,200		345,254
Spok Holdings, Inc.		6,100		100,955
West Corp.		61,300		1,436,259
				1,882,468
Telecommunication Equipment — 0.1%
Comtech Telecommunications Corp.		26,400		340,296
Telephone - Integrated — 0.2%
Windstream Holdings, Inc.#		148,500		1,263,735
Television — 0.0%
Central European Media Enterprises, Ltd., Class A†#		26,400		62,304
Therapeutics — 0.1%
Cara Therapeutics, Inc.†#		6,900		37,398
Seres Therapeutics, Inc.†#		13,200		138,204
Voyager Therapeutics, Inc.†		18,500		225,145
Zafgen, Inc.†		2,500		7,475
				408,222
Tobacco — 0.4%
Alliance One International, Inc.†#		4,900		104,027
Universal Corp.		36,400		2,190,188
				2,294,215
Toys — 0.0%
JAKKS Pacific, Inc.†#		20,700		190,647
Transport - Air Freight — 0.1%
Atlas Air Worldwide Holdings, Inc.†		18,700		694,518
Transport - Equipment & Leasing — 0.1%
AMERCO		800		274,968
Greenbrier Cos., Inc.#		13,000		440,570
				715,538
Transport - Marine — 0.8%
Kirby Corp.†		78,000		4,063,800
Transport - Services — 0.2%
Matson, Inc.		23,000		887,570
Transport - Truck — 1.4%
ArcBest Corp.		37,820		692,484
Knight Transportation, Inc.		99,250		2,788,925
Landstar System, Inc.		45,900		3,177,657
USA Truck, Inc.†		55,200		612,720
				7,271,786
Travel Services — 0.2%
Liberty TripAdvisor Holdings, Inc., Class A†		53,200		1,107,092
Water — 0.3%
American States Water Co.		28,300		1,103,134
California Water Service Group		19,560		596,384
				1,699,518

Security Description	Shares/ Principal Amount			Value (Note 2)
Web Hosting/Design — 0.8%
Endurance International Group Holdings, Inc.†		506,138		$	4,023,797
Wire & Cable Products — 0.1%
General Cable Corp.		32,900			530,677
Wireless Equipment — 0.2%
InterDigital, Inc.		11,800			842,638
Total Common Stocks (cost $423,667,656)					482,976,224
WARRANTS — 0.0%
Finance other services — 0.0%
Emergent Capital, Inc. Expires 10/01/2019 (strike price $10.75) (cost $0)†(14)		994			0
Total Long-Term Investment Securities
(cost $423,667,656)					482,976,224
SHORT-TERM INVESTMENT SECURITIES — 5.1%
Registered Investment Companies — 5.1%
State Street Navigator Securities Lending Prime Portfolio 0.43%(2)(3) (cost $26,117,305)		26,117,305			26,117,305
REPURCHASE AGREEMENTS — 5.9%
Agreement with State Street Bank and Trust Co., bearing interest at 0.01%, dated 08/31/2016, to be repurchased 09/01/2016 in the amount of $30,404,008 collateralized by $29,460,000 of United States Treasury Notes, bearing interest at 2.13% due 09/30/2021 and having an approximate value of $31,015,164 (cost $30,404,000)	$	30,404,000			30,404,000
TOTAL INVESTMENTS
(cost $480,188,961)(1)		105.0	%		539,497,529
Liabilities in excess of other assets		(5.0	)		(25,714,423	)
NET ASSETS		100.0	%	$	513,783,106

† Non-income producing security

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

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

(2) At August 31, 2016, the Fund had loaned securities with a total value of $27,746,303. This was secured by collateral of $26,117,305, which was received in cash and subsequently invested in short-term investments currently valued at $26,117,305 as reported in the Portfolio of Investments. Additional collateral of $2,937,119 was received in the form of fixed income pooled securities, which the Fund cannot sell or repledge and accordingly, is not reflected in the Fund’s assets and liabilities.

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

Securities	Coupon Range	Maturity Date Range	Value as of August 31, 2016
United States Treasury Notes/Bonds	0.13% to 8.88%	01/31/2017 to 05/15/2046	$2,937,119

(3) The rate shown is a 7-day yield as of August 31, 2016.

ADR—American Depositary Receipt

78

VALIC Company II Small Cap Value Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Futures Contracts
Number of Contracts		Type	Description	Expiration Month		Value at Trade Date		Value as of August 31, 2016		Unrealized Appreciation (Depreciation)
	91	Long	Russell 2000 E-Mini Index		September 2016	$	11,205,602	$	11,273,080	$	67,478

The following is a summary of the inputs used to value the Fund’s net assets as of August 31, 2016 (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	$	482,976,224	$	—	$	—	$	482,976,224
Warrants		—		0		—		0
Short-Term Investment Securities		26,117,305		—		—		26,117,305
Repurchase Agreements		—		30,404,000		—		30,404,000
Total Investments at Value	$	509,093,529	$	30,404,000	$	—	$	539,497,529
Other Financial Instruments:+
Futures Contracts . . . . . . . . . . . . . . . . . . . .	$	67,478	$	—	$	—	$	67,478

* 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.

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.

See Notes to Financial Statements

79

VALIC Company II Socially Responsible Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Real Estate Investment Trusts	5.9	%
Medical — Biomedical/Gene	4.1
Banks — Super Regional	3.8
Applications Software	3.5
Cosmetics & Toiletries	3.4
Web Portals/ISP	3.4
Electronic Components — Semiconductors	3.1
Finance — Credit Card	3.0
Oil Companies — Exploration & Production	2.9
Beverages — Non-alcoholic	2.8
U.S. Government Treasuries	2.4
Diagnostic Equipment	2.4
Computer Services	2.3
Insurance — Reinsurance	2.1
Internet Content — Entertainment	1.9
Insurance — Multi-line	1.8
Medical — Drugs	1.7
Multimedia	1.7
Medical Products	1.5
Medical — HMO	1.5
Food — Misc./Diversified	1.5
Retail — Restaurants	1.4
Enterprise Software/Service	1.4
Cable/Satellite TV	1.3
Networking Products	1.3
Banks — Commercial	1.3
Commercial Services — Finance	1.2
Oil — Field Services	1.2
Diversified Manufacturing Operations	1.1
Electric — Integrated	1.1
Insurance — Life/Health	1.1
Transport — Rail	1.1
Semiconductor Components — Integrated Circuits	1.1
Pipelines	1.0
Transport — Services	1.0
Investment Management/Advisor Services	1.0
Retail — Major Department Stores	0.9
Medical — Wholesale Drug Distribution	0.9
Computers — Memory Devices	0.8
Repurchase Agreements	0.8
Commercial Services	0.8
Registered Investment Companies	0.7
Retail — Apparel/Shoe	0.7
Electric — Distribution	0.6
Retail — Building Products	0.6
Apparel Manufacturers	0.6
Retail — Drug Store	0.6
Finance — Other Services	0.6
Consumer Products — Misc.	0.6
Auto — Cars/Light Trucks	0.6
Machinery — Construction & Mining	0.6
Industrial Gases	0.5
Telephone — Integrated	0.5
Data Processing/Management	0.5
E-Commerce/Services	0.5
Airlines	0.4
Electric Products — Misc.	0.4
Auto/Truck Parts & Equipment — Original	0.4
Gas — Distribution	0.4
Food — Retail	0.4
Electronic Forms	0.4
Semiconductor Equipment	0.4
Retail — Discount	0.4
Pharmacy Services	0.4
Medical Instruments	0.4
Hotels/Motels	0.3
Machinery — Farming	0.3
Electronic Measurement Instruments	0.3
Home Decoration Products	0.3

Electronic Components — Misc.	0.3
Insurance — Property/Casualty	0.3
Non-Hazardous Waste Disposal	0.3
Oil Refining & Marketing	0.3
Banks — Fiduciary	0.3
Paper & Related Products	0.3
Finance — Investment Banker/Broker	0.3
Medical — Generic Drugs	0.3
Insurance Brokers	0.3
Chemicals — Diversified	0.2
Auto — Heavy Duty Trucks	0.2
Vitamins & Nutrition Products	0.2
Retail — Regional Department Stores	0.2
Oil Field Machinery & Equipment	0.2
Advertising Agencies	0.2
Entertainment Software	0.2
Diversified Operations	0.2
Dental Supplies & Equipment	0.2
Electronic Security Devices	0.2
Computers	0.2
Medical — Hospitals	0.2
Medical Labs & Testing Services	0.2
E-Commerce/Products	0.2
Retail — Auto Parts	0.2
Industrial Automated/Robotic	0.2
Engines — Internal Combustion	0.2
Tools — Hand Held	0.2
Building Products — Cement	0.2
Agricultural Chemicals	0.2
Textile — Home Furnishings	0.1
Finance — Consumer Loans	0.1
Medical Information Systems	0.1
Television	0.1
Aerospace/Defense	0.1
Oil Companies — Integrated	0.1
Containers — Paper/Plastic	0.1
Steel — Producers	0.1
Appliances	0.1
Office Automation & Equipment	0.1
Water	0.1
Distribution/Wholesale	0.1
Retail — Perfume & Cosmetics	0.1
Food — Confectionery	0.1
Electronic Connectors	0.1
Telecom Services	0.1
Wireless Equipment	0.1
Toys	0.1
Building Products — Wood	0.1
Cruise Lines	0.1
	100.6	%

* Calculated as a percentage of net assets

80

VALIC Company II Socially Responsible Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Shares		Value (Note 2)
COMMON STOCKS — 96.7%
Advertising Agencies — 0.2%
Omnicom Group, Inc.		19,110	$	1,645,944
Aerospace/Defense — 0.1%
TransDigm Group, Inc.†		3,484		993,602
Agricultural Chemicals — 0.2%
CF Industries Holdings, Inc.		17,081		444,106
Mosaic Co.		24,573		738,910
				1,183,016
Airlines — 0.4%
American Airlines Group, Inc.		23,983		870,583
Delta Air Lines, Inc.		28,016		1,029,588
Southwest Airlines Co.		30,771		1,134,834
United Continental Holdings, Inc.†		7,821		394,257
				3,429,262
Apparel Manufacturers — 0.6%
Hanesbrands, Inc.		41,403		1,098,836
Michael Kors Holdings, Ltd.†		4,294		210,191
Under Armour, Inc., Class C†		20,491		730,504
VF Corp.		43,935		2,726,167
				4,765,698
Appliances — 0.1%
Whirlpool Corp.		4,351		777,263
Applications Software — 3.5%
Citrix Systems, Inc.†		3,558		310,258
Intuit, Inc.		12,501		1,393,236
Microsoft Corp.		382,582		21,983,162
Red Hat, Inc.†		1,310		95,604
Salesforce.com, Inc.†		30,739		2,441,291
				26,223,551
Auto - Cars/Light Trucks — 0.6%
Ford Motor Co.		341,193		4,299,032
Auto - Heavy Duty Trucks — 0.2%
PACCAR, Inc.		29,524		1,766,716
Auto/Truck Parts & Equipment - Original — 0.4%
Delphi Automotive PLC		15,439		1,090,920
Johnson Controls, Inc.		51,485		2,259,162
				3,350,082
Banks - Commercial — 1.3%
BB&T Corp.		137,108		5,278,658
M&T Bank Corp.#		30,038		3,554,396
Regions Financial Corp.		74,610		743,862
				9,576,916
Banks - Fiduciary — 0.3%
Citizens Financial Group, Inc.		28,688		710,602
Northern Trust Corp.		18,835		1,329,562
				2,040,164
Banks - Super Regional — 3.8%
Capital One Financial Corp.		61,326		4,390,942
Comerica, Inc.		14,387		680,361
Fifth Third Bancorp		155,600		3,136,896
Huntington Bancshares, Inc.		42,795		428,378
KeyCorp		51,718		649,578
PNC Financial Services Group, Inc.		78,821		7,101,772
SunTrust Banks, Inc.		46,114		2,032,244
US Bancorp		241,162		10,647,302
				29,067,473

Security Description	Shares		Value (Note 2)
Beverages - Non-alcoholic — 2.8%
Dr Pepper Snapple Group, Inc.		15,893	$	1,489,174
Monster Beverage Corp.†		5,396		830,391
PepsiCo, Inc.		174,856		18,665,878
				20,985,443
Building Products - Cement — 0.2%
Martin Marietta Materials, Inc.		1,296		237,207
Vulcan Materials Co.		8,500		967,895
				1,205,102
Building Products - Wood — 0.1%
Masco Corp.		12,078		428,527
Cable/Satellite TV — 1.3%
Comcast Corp., Class A		148,713		9,705,010
Chemicals - Diversified — 0.2%
Eastman Chemical Co.		19,559		1,327,860
LyondellBasell Industries NV, Class A		7,556		596,093
				1,923,953
Chemicals - Specialty — 0.0%
International Flavors & Fragrances, Inc.		451		62,500
Commercial Services — 0.8%
Cintas Corp.		7,876		925,509
Ecolab, Inc.		29,042		3,573,618
Nielsen Holdings PLC		22,844		1,217,128
				5,716,255
Commercial Services - Finance — 1.2%
Automatic Data Processing, Inc.		44,099		3,960,531
H&R Block, Inc.		2,355		51,010
PayPal Holdings, Inc.†		77,368		2,874,221
S&P Global, Inc.		17,393		2,148,731
				9,034,493
Computer Aided Design — 0.0%
Autodesk, Inc.†		4,946		333,360
Computer Services — 2.3%
Accenture PLC, Class A		39,908		4,589,420
Cognizant Technology Solutions Corp., Class A†		24,122		1,385,568
Hewlett Packard Enterprise Co.		80,682		1,733,049
International Business Machines Corp.		63,003		10,009,917
				17,717,954
Computers — 0.2%
HP, Inc.		106,712		1,533,451
Computers - Memory Devices — 0.8%
EMC Corp.		153,484		4,449,501
NetApp, Inc.		7,026		243,029
Seagate Technology PLC		19,573		660,393
Western Digital Corp.		11,717		546,833
				5,899,756
Consumer Products - Misc. — 0.6%
Kimberly-Clark Corp.		33,770		4,324,586
Containers - Paper/Plastic — 0.1%
Sealed Air Corp.		7,872		371,007
WestRock Co.		9,939		476,078
				847,085
Cosmetics & Toiletries — 3.4%
Colgate-Palmolive Co.		108,412		8,059,348
Procter & Gamble Co.		201,049		17,553,588
				25,612,936

81

VALIC Company II Socially Responsible Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Cruise Lines — 0.1%
Royal Caribbean Cruises, Ltd.		5,489	$	390,323
Data Processing/Management — 0.5%
Fidelity National Information Services, Inc.		22,615		1,794,048
Fiserv, Inc.†		16,641		1,714,855
Paychex, Inc.		4,220		256,027
				3,764,930
Dental Supplies & Equipment — 0.2%
DENTSPLY SIRONA, Inc.		25,202		1,548,915
Diagnostic Equipment — 2.4%
Abbott Laboratories		170,870		7,179,958
Danaher Corp.		75,896		6,178,693
Thermo Fisher Scientific, Inc.		29,715		4,522,326
				17,880,977
Distribution/Wholesale — 0.1%
Fastenal Co.		15,084		650,271
Diversified Manufacturing Operations — 1.1%
Eaton Corp. PLC		41,717		2,775,849
Illinois Tool Works, Inc.		34,689		4,122,788
Parker-Hannifin Corp.		7,312		895,939
Pentair PLC#		14,110		903,746
				8,698,322
Diversified Operations — 0.2%
Leucadia National Corp.		83,380		1,596,727
E-Commerce/Products — 0.2%
eBay, Inc.†		44,453		1,429,608
E-Commerce/Services — 0.5%
Expedia, Inc.		2,780		303,354
Priceline Group, Inc.†		2,304		3,264,146
				3,567,500
Electric Products - Misc. — 0.4%
Emerson Electric Co.		64,491		3,397,386
Electric - Distribution — 0.6%
PPL Corp.		138,095		4,802,944
Electric - Integrated — 1.1%
CMS Energy Corp.		58,662		2,462,044
Eversource Energy		62,210		3,357,474
WEC Energy Group, Inc.		45,949		2,751,426
				8,570,944
Electronic Components - Misc. — 0.3%
Corning, Inc.		75,556		1,714,365
Garmin, Ltd.#		15,409		756,274
				2,470,639
Electronic Components - Semiconductors — 3.1%
Broadcom, Ltd.		19,562		3,451,128
Intel Corp.		298,411		10,709,971
Microchip Technology, Inc.#		7,483		463,272
Micron Technology, Inc.†		39,222		646,771
NVIDIA Corp.		23,771		1,458,113
Qorvo, Inc.†		3,633		208,643
Skyworks Solutions, Inc.		4,213		315,385
Texas Instruments, Inc.		86,464		6,012,707
				23,265,990
Electronic Connectors — 0.1%
TE Connectivity, Ltd.		9,019		573,338

Security Description	Shares		Value (Note 2)
Electronic Forms — 0.4%
Adobe Systems, Inc.†		31,442	$	3,216,831
Electronic Measurement Instruments — 0.3%
Agilent Technologies, Inc.		10,958		514,807
Fortive Corp.		37,948		1,998,721
				2,513,528
Electronic Security Devices — 0.2%
Johnson Controls International PLC†		35,210		1,537,973
Engines - Internal Combustion — 0.2%
Cummins, Inc.		10,180		1,278,710
Enterprise Software/Service — 1.4%
CA, Inc.		12,277		416,313
Oracle Corp.		239,851		9,886,658
				10,302,971
Entertainment Software — 0.2%
Activision Blizzard, Inc.		18,813		778,294
Electronic Arts, Inc.†		10,628		863,312
				1,641,606
Finance - Consumer Loans — 0.1%
Synchrony Financial		40,161		1,117,681
Finance - Credit Card — 3.0%
American Express Co.		57,742		3,786,720
Discover Financial Services		32,069		1,924,140
MasterCard, Inc., Class A		69,605		6,725,931
Visa, Inc., Class A		130,424		10,551,302
				22,988,093
Finance - Investment Banker/Broker — 0.3%
Charles Schwab Corp.		62,836		1,976,821
Finance - Other Services — 0.6%
CME Group, Inc.		24,376		2,641,140
Intercontinental Exchange, Inc.		6,614		1,865,280
				4,506,420
Food - Confectionery — 0.1%
J.M. Smucker Co.		4,413		625,719
Food - Misc./Diversified — 1.5%
Campbell Soup Co.		19,737		1,198,431
General Mills, Inc.		81,087		5,742,581
Kraft Heinz Co.		47,217		4,225,449
				11,166,461
Food - Retail — 0.4%
Kroger Co.		102,481		3,278,367
Gas - Distribution — 0.4%
CenterPoint Energy, Inc.		107,674		2,419,435
NiSource, Inc.		36,845		882,069
				3,301,504
Home Decoration Products — 0.3%
Newell Brands, Inc.		46,592		2,473,103
Hotels/Motels — 0.3%
Marriott International, Inc., Class A#		24,363		1,737,813
Wyndham Worldwide Corp.		12,248		867,036
				2,604,849
Industrial Automated/Robotic — 0.2%
Rockwell Automation, Inc.		11,351		1,315,921
Industrial Gases — 0.5%
Air Products & Chemicals, Inc.		25,402		3,953,059

82

VALIC Company II Socially Responsible Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Insurance Brokers — 0.3%
Aon PLC		4,393	$	489,161
Marsh & McLennan Cos., Inc.		16,907		1,143,420
Willis Towers Watson PLC		2,553		316,597
				1,949,178
Insurance - Life/Health — 1.1%
Aflac, Inc.		35,412		2,626,862
Lincoln National Corp.		8,769		421,175
Principal Financial Group, Inc.#		11,542		566,366
Prudential Financial, Inc.		59,207		4,699,852
				8,314,255
Insurance - Multi-line — 1.8%
Allstate Corp.		37,523		2,587,586
Chubb, Ltd.		57,899		7,349,120
Cincinnati Financial Corp.		6,024		464,511
Hartford Financial Services Group, Inc.		20,221		830,476
Loews Corp.		55,265		2,313,393
				13,545,086
Insurance - Property/Casualty — 0.3%
Travelers Cos., Inc.		20,300		2,409,813
Insurance - Reinsurance — 2.1%
Berkshire Hathaway, Inc., Class B†		107,368		16,157,810
Internet Content - Entertainment — 1.9%
Facebook, Inc., Class A†		98,706		12,448,801
Netflix, Inc.†		16,809		1,638,037
				14,086,838
Investment Management/Advisor Services — 1.0%
Ameriprise Financial, Inc.		12,211		1,234,288
BlackRock, Inc.		11,861		4,421,899
Franklin Resources, Inc.		20,511		748,652
Invesco, Ltd.		13,676		426,554
T. Rowe Price Group, Inc.		7,505		521,898
				7,353,291
Machinery - Construction & Mining — 0.6%
Caterpillar, Inc.#		52,057		4,266,071
Machinery - Farming — 0.3%
Deere & Co.		30,086		2,543,771
Machinery - General Industrial — 0.0%
Roper Technologies, Inc.		1,163		206,491
Medical Information Systems — 0.1%
Cerner Corp.†		16,416		1,059,489
Medical Instruments — 0.4%
Edwards Lifesciences Corp.†		15,364		1,769,318
St. Jude Medical, Inc.		15,518		1,209,163
				2,978,481
Medical Labs & Testing Services — 0.2%
Laboratory Corp. of America Holdings†		7,191		984,664
Quest Diagnostics, Inc.		5,800		480,356
				1,465,020
Medical Products — 1.5%
Becton Dickinson and Co.		38,867		6,887,621
Stryker Corp.		39,963		4,622,121
				11,509,742
Medical - Biomedical/Gene — 4.1%
Alexion Pharmaceuticals, Inc.†		16,295		2,050,889
Amgen, Inc.		56,037		9,529,652

Security Description	Shares		Value (Note 2)
Medical - Biomedical/Gene (continued)
Biogen, Inc.†		12,242	$	3,741,522
Celgene Corp.†		53,531		5,713,899
Gilead Sciences, Inc.		76,845		6,023,111
Illumina, Inc.†		6,349		1,068,791
Regeneron Pharmaceuticals, Inc.†		4,165		1,634,971
Vertex Pharmaceuticals, Inc.†		14,151		1,337,411
				31,100,246
Medical - Drugs — 1.7%
AbbVie, Inc.		153,802		9,858,708
Zoetis, Inc.		62,084		3,172,493
				13,031,201
Medical - Generic Drugs — 0.3%
Mylan NV†		28,444		1,204,888
Perrigo Co. PLC#		8,279		753,306
				1,958,194
Medical - HMO — 1.5%
Humana, Inc.		9,726		1,738,134
UnitedHealth Group, Inc.		70,785		9,630,299
				11,368,433
Medical - Hospitals — 0.2%
HCA Holdings, Inc.†		19,984		1,509,791
Medical - Wholesale Drug Distribution — 0.9%
AmerisourceBergen Corp.		17,803		1,548,327
Cardinal Health, Inc.		31,658		2,522,193
McKesson Corp.		13,419		2,477,416
				6,547,936
Multimedia — 1.7%
Twenty-First Century Fox, Inc., Class A		50,956		1,250,460
Twenty-First Century Fox, Inc., Class B		49,618		1,233,007
Viacom, Inc., Class B		17,767		716,721
Walt Disney Co.		100,359		9,479,911
				12,680,099
Networking Products — 1.3%
Cisco Systems, Inc.		305,307		9,598,852
Non-Hazardous Waste Disposal — 0.3%
Republic Services, Inc.		42,928		2,168,723
Office Automation & Equipment — 0.1%
Xerox Corp.		69,111		680,743
Oil Companies - Exploration & Production — 2.9%
Anadarko Petroleum Corp.		35,536		1,900,110
Apache Corp.		24,537		1,219,489
Cabot Oil & Gas Corp.		16,625		409,474
Devon Energy Corp.		34,331		1,487,562
EOG Resources, Inc.		30,897		2,734,075
EQT Corp.		7,872		562,848
Hess Corp.		47,123		2,558,779
Marathon Oil Corp.		165,552		2,486,591
Noble Energy, Inc.		20,412		703,806
Occidental Petroleum Corp.		86,573		6,653,135
Pioneer Natural Resources Co.#		6,458		1,156,305
				21,872,174
Oil Companies - Integrated — 0.1%
Murphy Oil Corp.#		34,888		932,207
Oil Field Machinery & Equipment — 0.2%
National Oilwell Varco, Inc.		51,004		1,710,674

83

VALIC Company II Socially Responsible Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares		Value (Note 2)
COMMON STOCKS (continued)
Oil Refining & Marketing — 0.3%
Marathon Petroleum Corp.		12,202	$	518,707
Phillips 66		16,995		1,333,258
Valero Energy Corp.		5,183		286,879
				2,138,844
Oil - Field Services — 1.2%
Baker Hughes, Inc.		31,181		1,531,923
Schlumberger, Ltd.		94,538		7,468,502
				9,000,425
Paper & Related Products — 0.3%
International Paper Co.		41,685		2,021,306
Pharmacy Services — 0.4%
Express Scripts Holding Co.†		42,087		3,059,725
Pipelines — 1.0%
Kinder Morgan, Inc.		109,565		2,393,995
ONEOK, Inc.		25,861		1,212,622
Spectra Energy Corp.		113,451		4,041,125
				7,647,742
Real Estate Investment Trusts — 5.9%
American Tower Corp.		59,738		6,773,094
AvalonBay Communities, Inc.		8,787		1,537,813
Boston Properties, Inc.		4,161		583,081
Crown Castle International Corp.		46,061		4,365,201
Digital Realty Trust, Inc.#		5,391		534,194
Equinix, Inc.		4,741		1,747,770
Equity Residential		15,787		1,024,103
Essex Property Trust, Inc.		799		181,453
General Growth Properties, Inc.		35,364		1,030,507
HCP, Inc.		63,567		2,500,090
Host Hotels & Resorts, Inc.		83,156		1,481,840
Prologis, Inc.		35,578		1,889,548
Public Storage		11,458		2,565,905
Realty Income Corp.		11,177		734,664
Simon Property Group, Inc.		35,226		7,590,146
Ventas, Inc.		39,584		2,876,569
Vornado Realty Trust		12,768		1,319,062
Welltower, Inc.		31,049		2,383,011
Weyerhaeuser Co.		106,431		3,389,827
				44,507,878
Retail - Apparel/Shoe — 0.7%
Coach, Inc.		24,099		920,100
L Brands, Inc.		26,870		2,047,763
Ross Stores, Inc.		35,761		2,225,764
				5,193,627
Retail - Auto Parts — 0.2%
O’Reilly Automotive, Inc.†		5,028		1,407,589
Retail - Automobile — 0.0%
CarMax, Inc.†#		3,681		216,995
Retail - Building Products — 0.6%
Lowe’s Cos., Inc.		62,390		4,776,578
Retail - Consumer Electronics — 0.0%
Best Buy Co., Inc.		7,266		279,596
Retail - Discount — 0.4%
Dollar General Corp.		23,493		1,724,621
Dollar Tree, Inc.†		16,210		1,340,567
				3,065,188
Retail - Drug Store — 0.6%
Walgreens Boots Alliance, Inc.		58,672		4,735,417

Security Description	Shares			Value (Note 2)
Retail - Jewelry — 0.0%
Tiffany & Co.#		1,850		$	132,034
Retail - Major Department Stores — 0.9%
TJX Cos., Inc.		87,621			6,785,370
Retail - Office Supplies — 0.0%
Staples, Inc.		30,753			263,246
Retail - Perfume & Cosmetics — 0.1%
Ulta Salon Cosmetics & Fragrance, Inc.†		2,547			629,644
Retail - Regional Department Stores — 0.2%
Kohl’s Corp.		19,822			879,700
Macy’s, Inc.		23,549			852,003
					1,731,703
Retail - Restaurants — 1.4%
Chipotle Mexican Grill, Inc.†#		725			299,954
Darden Restaurants, Inc.		6,709			413,543
Starbucks Corp.		113,005			6,354,271
Yum! Brands, Inc.		37,577			3,408,610
					10,476,378
Semiconductor Components - Integrated Circuits — 1.1%
Analog Devices, Inc.		29,212			1,827,503
QUALCOMM, Inc.		100,398			6,332,102
					8,159,605
Semiconductor Equipment — 0.4%
Applied Materials, Inc.		64,853			1,935,214
KLA-Tencor Corp.		17,343			1,201,176
					3,136,390
Steel - Producers — 0.1%
Nucor Corp.		16,480			799,445
Telecom Services — 0.1%
Level 3 Communications, Inc.†		10,841			538,039
Telephone - Integrated — 0.5%
CenturyLink, Inc.		101,001			2,807,828
Frontier Communications Corp.#		223,976			1,030,289
					3,838,117
Television — 0.1%
CBS Corp., Class B		19,927			1,016,875
Textile - Home Furnishings — 0.1%
Mohawk Industries, Inc.†		5,332			1,134,543
Tools - Hand Held — 0.2%
Stanley Black & Decker, Inc.		10,046			1,243,192
			��
Toys — 0.1%
Mattel, Inc.		13,206			437,515
Transport - Rail — 1.1%
CSX Corp.		52,381			1,481,335
Norfolk Southern Corp.		17,912			1,681,937
Union Pacific Corp.		53,201			5,082,291
					8,245,563
Transport - Services — 1.0%
United Parcel Service, Inc., Class B		68,007			7,427,725
Vitamins & Nutrition Products — 0.2%
Mead Johnson Nutrition Co.		20,472			1,741,553
Water — 0.1%
American Water Works Co., Inc.		9,183			679,450
Web Portals/ISP — 3.4%
Alphabet, Inc., Class A†		16,446			12,989,873

84

VALIC Company II Socially Responsible Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares/ Principal Amount		Value (Note 2)
COMMON STOCKS (continued)
Web Portals/ISP (continued)
Alphabet, Inc., Class C†		13,440	$	10,309,152
Yahoo!, Inc.†		49,585		2,119,759
				25,418,784
Wireless Equipment — 0.1%
Motorola Solutions, Inc.		6,303		485,268
Total Long-Term Investment Securities
(cost $590,802,911)				732,233,519
SHORT-TERM INVESTMENT SECURITIES — 3.1%
Registered Investment Companies — 0.7%
State Street Navigator Securities Lending Prime Portfolio 0.43%(1)(2)		5,529,983		5,529,983
U.S. Government Treasuries — 2.4%
United States Treasury Bills
0.22% due 09/22/2016(3)	$	3,200,000		3,199,619
0.26% due 09/08/2016		5,000,000		4,999,820
0.27% due 09/15/2016		5,000,000		4,999,610
0.27% due 09/22/2016(3)		5,000,000		4,999,405
				18,198,454
Total Short-Term Investment Securities
(cost $23,728,031)				23,728,437
REPURCHASE AGREEMENTS — 0.8%
State Street Bank and Trust Co. Joint Repurchase Agreement(4) (cost $5,764,000)	$	5,764,000		5,764,000

Security Description	Principal Amount			Value (Note 2)
TOTAL INVESTMENTS
(cost $620,294,942)(5)		100.6	%		761,725,956
Liabilities in excess of other assets		(0.6	)		(4,905,400	)
NET ASSETS		100.0	%	$	756,820,556

† Non-income producing security

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

(1) At August 31, 2016, the Fund had loaned securities with a total value of $9,559,193. This was secured by collateral of $5,529,983, which was received in cash and subsequently invested in short-term investments currently valued at $5,529,983 as reported in the Portfolio of Investments. Additional collateral of $4,576,080 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.

Securities	Coupon Range	Maturity Date Range	Value as of August 31, 2016
United States Treasury Bills	0.00%	09/15/2016 to 05/25/2017	$	4,787
United States Treasury Notes/Bonds	zero coupon to 8.88%	09/15/2016 to 05/15/2046		4,571,293

(2) The rate shown is the 7-day yield as of August 31, 2016.

(3) The security or a portion thereof was pledged as collateral to cover margin requirements for open futures contracts.

(4) See Note 2 for details of Joint Repurchase Agreements.

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

Futures Contracts
Number of Contracts		Type	Description	Expiration Month		Value at Trade Date		Value as of August 31, 2016		Unrealized Appreciation (Depreciation)
	261	Long	S&P 500 E-mini Index		September 2016	$	27,084,130	$	28,311,975	$	1,227,845

85

VALIC Company II Socially Responsible Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

The following is a summary of the inputs used to value the Fund’s net assets as of August 31, 2016 (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	$	732,233,519	$	—	$	—	$	732,233,519
Short-Term Investment Securities:
Registered Investment Companies		5,529,983		—		—		5,529,983
U.S. Government Treasuries		—		18,198,454		—		18,198,454
Repurchase Agreements		—		5,764,000		—		5,764,000
Total Investments at Value	$	737,763,502	$	23,962,454	$	—	$	761,725,956
Other Financial Instruments:+
Futures Contracts	$	1,227,845	$	—	$	—	$	1,227,845

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

+ Other financial instruments are derivative instruments, not reflected in the Portfolio of Investments, such as futures, forward, swap and written option contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no transfers between Levels during the reporting period.

See Notes to Financial Statements

86

VALIC Company II Strategic Bond Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited)

Industry Allocation*

Federal National Mtg. Assoc.	11.0	%
Sovereign	8.7
Federal Home Loan Mtg. Corp.	8.4
Time Deposits	8.1
Diversified Banking Institutions	4.5
United States Treasury Notes	4.0
Government National Mtg. Assoc.	3.2
Banks — Commercial	2.7
Oil Companies — Exploration & Production	2.5
Electric — Integrated	2.3
Pipelines	2.2
Cable/Satellite TV	2.2
Registered Investment Companies	2.1
Telephone — Integrated	2.0
United States Treasury Bonds	1.7
Diversified Financial Services	1.7
Cellular Telecom	1.3
Medical — Hospitals	1.3
Auto — Cars/Light Trucks	1.2
Oil Companies — Integrated	1.2
Paper & Related Products	0.9
Computers	0.8
Steel — Producers	0.8
Satellite Telecom	0.7
Finance — Consumer Loans	0.7
Finance — Auto Loans	0.7
Oil Refining & Marketing	0.7
Real Estate Investment Trusts	0.6
Brewery	0.6
Savings & Loans/Thrifts	0.6
Casino Hotels	0.6
Computer Services	0.5
Insurance — Multi — line	0.5
Insurance — Life/Health	0.5
Printing — Commercial	0.5
Medical — Drugs	0.5
Containers — Metal/Glass	0.5
Building — Residential/Commercial	0.5
Food — Retail	0.4
Electronic Components — Semiconductors	0.4
Medical — HMO	0.4
Electric — Generation	0.4
Banks — Super Regional	0.4
Aerospace/Defense — Equipment	0.4
Chemicals — Diversified	0.4
Independent Power Producers	0.4
Investment Management/Advisor Services	0.4
Finance — Other Services	0.4
Telecom Services	0.4
Diversified Manufacturing Operations	0.3
Food — Misc./Diversified	0.3
Airlines	0.3
Oil — Field Services	0.3
Banks — Fiduciary	0.3
Retail — Restaurants	0.3
Gambling (Non — Hotel)	0.3
Internet Connectivity Services	0.3
Diversified Minerals	0.3
Medical Labs & Testing Services	0.3
Aerospace/Defense	0.3
Metal — Diversified	0.3
Finance — Leasing Companies	0.3
Rental Auto/Equipment	0.3
Industrial Gases	0.3
Wire & Cable Products	0.3
Containers — Paper/Plastic	0.3
Medical — Biomedical/Gene	0.3
Retail — Drug Store	0.3
Coal	0.3

Food — Meat Products	0.3
Financial Guarantee Insurance	0.3
Insurance — Reinsurance	0.3
Networking Products	0.2
Real Estate Operations & Development	0.2
Electric — Distribution	0.2
Airport Development/Maintenance	0.2
Food — Dairy Products	0.2
Insurance — Mutual	0.2
Building Products — Wood	0.2
Auto — Heavy Duty Trucks	0.2
Finance — Mortgage Loan/Banker	0.2
Broadcast Services/Program	0.2
Computers — Integrated Systems	0.2
Internet Content — Entertainment	0.2
Energy — Alternate Sources	0.2
Publishing — Periodicals	0.2
Applications Software	0.2
Building & Construction — Misc.	0.2
Machinery — Farming	0.2
Real Estate Management/Services	0.2
Cruise Lines	0.2
Metal — Aluminum	0.2
Chemicals — Plastics	0.2
Metal — Copper	0.2
Publishing — Newspapers	0.2
Enterprise Software/Service	0.2
Batteries/Battery Systems	0.2
Metal Processors & Fabrication	0.2
Telecommunication Equipment	0.2
Marine Services	0.2
Rubber/Plastic Products	0.2
Computer Software	0.2
Machinery — General Industrial	0.2
Medical — Generic Drugs	0.2
Security Services	0.2
Banks — Money Center	0.2
Beverages — Wine/Spirits	0.2
Footwear & Related Apparel	0.2
Food — Wholesale/Distribution	0.2
Radio	0.2
Computers — Memory Devices	0.2
Building Products — Cement	0.2
Hotels/Motels	0.1
Finance — Commercial	0.1
Electric Products — Misc.	0.1
Finance — Credit Card	0.1
Hazardous Waste Disposal	0.1
Pharmacy Services	0.1
Retail — Discount	0.1
Retail — Appliances	0.1
Distribution/Wholesale	0.1
Agricultural Chemicals	0.1
Firearms & Ammunition	0.1
E — Commerce/Services	0.1
Chemicals — Specialty	0.1
Multimedia	0.1
Coatings/Paint	0.1
Beverages — Non — alcoholic	0.1
Semiconductor Components — Integrated Circuits	0.1
Home Furnishings	0.1
Oil Field Machinery & Equipment	0.1
Tools — Hand Held	0.1
Municipal Bonds & Notes	0.1
Consumer Products — Misc.	0.1
Petrochemicals	0.1
Advertising Agencies	0.1
Steel Pipe & Tube	0.1
Medical Products	0.1

87

VALIC Company II Strategic Bond Fund

PORTFOLIO PROFILE — August 31, 2016 (unaudited) — (continued)

Industry Allocation* (continued)

Gold Mining	0.1
SupraNational Banks	0.1
Retail — Computer Equipment	0.1
Gas — Transportation	0.1
E — Commerce/Products	0.1
Electronic Measurement Instruments	0.1
Transport — Marine	0.1
Data Processing/Management	0.1
Home Decoration Products	0.1
Oil & Gas Drilling	0.1
Finance — Investment Banker/Broker	0.1
	106.5	%

Credit Quality†#

Aaa	31.7	%
Aa	2.9
A	11.7
Baa	15.2
Ba	11.9
B	16.1
Caa	6.1
Not Rated@	4.4
	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 unavailabele from the data source.

88

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016

Security Description	Principal Amount(8)		Value (Note 2)
ASSET BACKED SECURITIES — 1.6%
Diversified Financial Services — 1.6%
American Express Credit Account Master Trust FRS Series 2014-1, Class A 0.88% due 12/15/2021	$	250,000	$	250,744
AmeriCredit Automobile Receivables Trust Series 2013-3, Class D 3.00% due 07/08/2019		60,000		60,896
Asset Backed Securities Corp. Home Equity Loan Trust FRS Series 2004-HE7, Class M2 2.06% due 10/25/2034		134,887		127,442
Avis Budget Rental Car Funding AESOP LLC Series 2013-1A, Class A 1.92% due 09/20/2019*		450,000		449,277
BA Credit Card Trust Series 2015-A2,Class A 1.36% due 09/15/2020		134,000		134,344
Capital One Multi-Asset Execution Trust Series 2016-A4, Class A4 1.33% due 06/15/2022		350,000		349,916
Carmax Auto Owner Trust Series 2016-3, Class A4 1.60% due 01/18/2022		500,000		497,314
CGGS Commercial Mtg. Trust Series 2016-RNDA, Class AFX 2.76% due 02/10/2033*(1)		500,000		507,633
Chase Issuance Trust FRS Series 2014-A5, Class A5 0.88% due 04/15/2021		541,000		541,973
Chase Issuance Trust Series 2016-A2, Class A 1.37% due 06/15/2021		300,000		300,240
Chase Mtg. Trust VRS Series 2016-2, Class M2 3.75% due 12/25/2045*(3)		197,146		203,534
Citigroup Commercial Mtg. Trust Series 2014-GC19, Class A2 2.79% due 03/10/2047(1)		226,000		230,730
Citigroup Commercial Mtg. Trust Series 2014-GC23, Class A2 2.85% due 07/10/2047(1)		172,000		176,971
Commercial Mtg. Trust Series 2015-DC1, Class A2 2.87% due 02/10/2048(1)		80,000		82,625
Commercial Mtg. Trust Series 2015-CR24, Class A2 3.02% due 08/10/2048(1)		41,875		43,848
Commercial Mtg. Trust VRS Series 2016-787S, Class A 3.55% due 02/10/2036*(1)		100,000		109,011
Core Industrial Trust Series 2015-CALW, Class A 3.04% due 02/10/2034*(1)		1,447,000		1,525,508
CSAIL Commercial Mtg. Trust Series 2015-C1, Class A2 2.97% due 04/15/2050(1)		25,000		26,030
CSMC Trust Series 2015-GLPA, Class A 3.88% due 11/15/2037*(1)		950,000		1,058,448
Ford Credit Auto Owner Trust Series 2014-C,Class B 1.97% due 04/15/2020		119,000		119,877

Security Description	Principal Amount(8)		Value (Note 2)
Diversified Financial Services (continued)
Ford Credit Auto Owner Trust* Series 2015-2, Class A 2.44% due 01/15/2027	$	120,000	$	122,895
GS Mtg. Securities Corp. II Series GC30, Class A2 2.73% due 05/10/2050(1)		46,875		48,275
GS Mtg. Securities Trust Series 2015-GC28, Class A2 2.90% due 02/10/2048(1)		75,000		77,389
Honda Auto Receivables Owner Trust Series 2016-2, Class A4 1.62% due 08/15/2022		168,000		169,072
Hudson Yards Mtg. Trust Series 2016-10HY, Class A 2.84% due 08/10/2038*(1)		3,098,000		3,189,144
JPMDB Commercial Mtg Securities Trust Series 2016-C2, Class A2 2.66% due 06/15/2049(1)		833,000		862,029
Palisades Center Trust Series 2016-PLSD, Class A 2.71% due 04/13/2033*(1)		906,000		924,986
Santander Drive Auto Receivables Trust Series 2014-5, Class C 2.46% due 06/15/2020		192,000		192,985
Synchrony Credit Card Master Note Trust Series 2016-1, Class A 2.04% due 03/15/2022		100,000		101,340
Synchrony Credit Card Master Note Trust Series 2016-2, Class A 2.21% due 05/15/2024		100,000		101,868
Taco Bell Funding LLC Series 2016-1A, Class A2I 3.83% due 05/25/2046*		166,000		168,264
Taco Bell Funding LLC Series 2016-1A, Class A2II 4.38% due 05/25/2046*		166,000		170,504
Total Asset Backed Securities
(cost $12,766,645)				12,925,112
U.S. CORPORATE BONDS & NOTES — 39.9%
Advertising Agencies — 0.1%
Interpublic Group of Cos., Inc. Senior Notes 4.20% due 04/15/2024		286,000		309,624
Omnicom Group, Inc. Company Guar. Notes 3.60% due 04/15/2026		391,000		416,524
				726,148
Aerospace/Defense — 0.2%
BAE Systems Holdings, Inc. Company Guar. Notes 3.80% due 10/07/2024*		519,000		549,014
BAE Systems Holdings, Inc. Company Guar. Notes 4.75% due 10/07/2044*		235,000		263,213
Boeing Co. Senior Notes 0.95% due 05/15/2018		469,000		468,432
Boeing Co. Senior Notes 2.20% due 10/30/2022		371,000		379,400
General Dynamics Corp. Company Guar. Notes 2.13% due 08/15/2026		328,000		324,169
				1,984,228

89

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Aerospace/Defense - Equipment — 0.4%
Harris Corp. Senior Notes 4.85% due 04/27/2035	$	468,000	$	523,500
Harris Corp. Senior Notes 5.05% due 04/27/2045		444,000		518,957
Moog, Inc. Company Guar. Notes 5.25% due 12/01/2022*		1,118,000		1,151,540
Spirit AeroSystems, Inc. Company Guar. Notes 3.85% due 06/15/2026		68,000		70,643
Triumph Group, Inc. Company Guar. Notes 5.25% due 06/01/2022		1,106,000		1,058,995
				3,323,635
Agricultural Operations — 0.0%
Archer-Daniels-Midland Co. Senior Notes 2.50% due 08/11/2026		300,000		302,114
Airlines — 0.3%
Atlas Air, Inc. Pass-Through Certs. Series 1999-1, Class B 7.63% due 01/02/2018(7)(14)		57,228		57,434
United Airlines Pass-Through Trust Pass-Through Certs. Series 2014-2, Class B 4.63% due 03/03/2024		1,141,136		1,152,547
United Airlines Pass-Through Trust Pass-Through Certs. Series 2013-1, Class B 5.38% due 02/15/2023		1,128,910		1,176,889
				2,386,870
Appliances — 0.0%
Whirlpool Corp. Senior Notes 4.50% due 06/01/2046		266,000		291,634
Applications Software — 0.2%
Microsoft Corp. Senior Notes 1.30% due 11/03/2018		402,000		404,492
Microsoft Corp. Senior Notes 2.40% due 08/08/2026		448,000		450,376
Microsoft Corp. Senior Notes 3.45% due 08/08/2036		465,000		478,059
Microsoft Corp. Senior Notes 3.70% due 08/08/2046		464,000		482,125
				1,815,052
Auto - Cars/Light Trucks — 0.8%
American Honda Finance Corp. Senior Notes 1.20% due 07/14/2017		717,000		718,493
American Honda Finance Corp. Senior Notes 1.20% due 07/12/2019		583,000		581,767
BMW US Capital LLC Company Guar. Notes 1.50% due 04/11/2019*		420,000		422,046

Security Description	Principal Amount(8)		Value (Note 2)
Auto - Cars/Light Trucks (continued)
Daimler Finance North America LLC Company Guar. Notes 2.00% due 07/06/2021*	$	303,000	$	304,494
Daimler Finance North America LLC Company Guar. Notes 2.45% due 05/18/2020*		844,000		866,701
Daimler Finance North America LLC Company Guar. Notes 2.63% due 09/15/2016*		344,000		344,161
Ford Motor Credit Co. LLC Senior Notes 1.50% due 01/17/2017		479,000		479,717
Ford Motor Credit Co. LLC Senior Notes 2.02% due 05/03/2019		658,000		661,718
Ford Motor Credit Co. LLC Senior Notes 3.10% due 05/04/2023		656,000		663,979
Hyundai Capital America Senior Notes 2.40% due 10/30/2018*		965,000		979,330
Toyota Motor Credit Corp. Senior Notes 2.00% due 10/24/2018		321,000		326,202
				6,348,608
Auto - Heavy Duty Trucks — 0.2%
JB Poindexter & Co., Inc. Senior Notes 9.00% due 04/01/2022*		1,675,000		1,800,625
PACCAR Financial Corp. Senior Notes 1.65% due 02/25/2019		132,000		133,270
				1,933,895
Banks - Commercial — 0.6%
BankUnited, Inc. Senior Notes 4.88% due 11/17/2025		949,000		987,079
Citizens Bank NA Senior Notes 2.55% due 05/13/2021		268,000		272,933
Discover Bank Senior Notes 3.45% due 07/27/2026		368,000		370,295
Fifth Third Bank Senior Notes 2.30% due 03/15/2019		236,000		240,324
First Horizon National Corp. Senior Notes 3.50% due 12/15/2020		1,173,000		1,195,880
First Tennessee Bank NA Senior Notes 2.95% due 12/01/2019		674,000		676,483
Regions Financial Corp. Senior Notes 3.20% due 02/08/2021		456,000		473,082
Regions Financial Corp. Sub. Notes 7.38% due 12/10/2037		799,000		1,038,410
				5,254,486
Banks - Fiduciary — 0.1%
Citizens Financial Group, Inc. Sub. Notes 4.15% due 09/28/2022*		842,000		871,143

90

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Banks - Super Regional — 0.3%
Capital One Financial Corp. Sub. Notes 3.75% due 07/28/2026		225,000	$	226,074
Wells Fargo & Co Senior Notes 1.50% due 09/12/2022	EUR	800,000		956,728
Wells Fargo & Co. Sub. Notes 4.10% due 06/03/2026		297,000		322,677
Wells Fargo & Co. Sub. Notes 4.30% due 07/22/2027		757,000		836,415
Wells Fargo & Co. Sub. Notes 4.40% due 06/14/2046		69,000		73,663
Wells Fargo & Co. Sub. Notes 4.90% due 11/17/2045		78,000		89,089
				2,504,646
Batteries/Battery Systems — 0.2%
EnerSys Company Guar. Notes 5.00% due 04/30/2023*		1,628,000		1,623,930
Brewery — 0.4%
Anheuser-Busch InBev Finance, Inc. Company Guar. Notes 1.90% due 02/01/2019		315,000		318,251
Anheuser-Busch InBev Finance, Inc. Company Guar. Notes 2.65% due 02/01/2021		589,000		607,390
Anheuser-Busch InBev Finance, Inc. Company Guar. Notes 3.30% due 02/01/2023		258,000		270,931
Anheuser-Busch InBev Finance, Inc. Company Guar. Notes 4.70% due 02/01/2036		427,000		495,515
Anheuser-Busch InBev Worldwide, Inc. Company Guar. Notes 1.38% due 07/15/2017		1,313,000		1,315,855
Molson Coors Brewing Co. Company Guar. Notes 3.00% due 07/15/2026		160,000		162,040
Molson Coors Brewing Co. Company Guar. Notes 4.20% due 07/15/2046		253,000		267,257
				3,437,239
Broadcast Services/Program — 0.2%
Clear Channel Worldwide Holdings, Inc. Company Guar. Notes Series A 6.50% due 11/15/2022		1,879,000		1,900,139
Building & Construction - Misc. — 0.2%
Weekley Homes LLC/Weekley Finance Corp. Senior Notes 6.00% due 02/01/2023		1,971,000		1,813,320
Building Products - Cement — 0.1%
Cemex Finance LLC Senior Sec. Notes 6.00% due 04/01/2024*#		400,000		422,000

Security Description	Principal Amount(8)		Value (Note 2)
Building Products - Wood — 0.2%
Boise Cascade Co. Company Guar. Notes 5.63% due 09/01/2024*		1,240,000	$	1,264,800
Masco Corp. Senior Notes 4.45% due 04/01/2025		630,000		672,525
				1,937,325
Building - Residential/Commercial — 0.3%
K. Hovnanian Enterprises, Inc. Senior Sec. Notes 7.25% due 10/15/2020*		1,093,000		978,235
Meritage Homes Corp. Company Guar. Notes 7.00% due 04/01/2022		1,050,000		1,170,750
				2,148,985
Cable/Satellite TV — 1.3%
Block Communications, Inc. Senior Notes 7.25% due 02/01/2020*		1,091,000		1,123,730
Cable One, Inc. Company Guar. Notes 5.75% due 06/15/2022*		1,817,000		1,912,392
CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.75% due 02/15/2026*		1,280,000		1,369,600
CCO Holdings LLC/CCO Holdings Capital Corp. Senior Notes 5.88% due 04/01/2024*#		490,000		527,975
Charter Communications Operating LLC/Charter Communications Operating Capital Senior Sec. Notes 3.58% due 07/23/2020*		310,000		324,393
Charter Communications Operating LLC/Charter Communications Operating Capital Senior Sec. Notes 6.38% due 10/23/2035*		262,000		313,274
Charter Communications Operating LLC/Charter Communications Operating Capital Senior Sec. Notes 6.48% due 10/23/2045*		166,000		204,005
Comcast Corp. Company Guar. Notes 2.35% due 01/15/2027		292,000		289,416
Comcast Corp. Company Guar. Notes 3.20% due 07/15/2036		303,000		302,456
Comcast Corp. Company Guar. Notes 3.40% due 07/15/2046		303,000		297,515
Comcast Corp. Company Guar. Notes 5.50% due 11/23/2029	GBP	315,000		597,108
CSC Holdings LLC Company Guar. Notes 6.63% due 10/15/2025*		1,125,000		1,222,031
DISH DBS Corp. Company Guar. Notes 7.75% due 07/01/2026*		1,736,000		1,852,295
				10,336,190

91

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Casino Hotels — 0.4%
Caesars Entertainment Resort Properties LLC Sec. Notes 11.00% due 10/01/2021#		794,000	$	818,813
Downstream Development Authority of the Quapaw Tribe of Oklahoma Senior Sec. Notes 10.50% due 07/01/2019*		1,341,000		1,377,877
Golden Nugget Escrow, Inc. Senior Notes 8.50% due 12/01/2021*		1,174,000		1,226,830
				3,423,520
Cellular Telecom — 1.2%
Sprint Communications, Inc. Senior Notes 7.00% due 08/15/2020		1,005,000		989,925
Sprint Communications, Inc. Company Guar. Notes 9.00% due 11/15/2018*		1,090,000		1,200,362
Sprint Corp. Company Guar. Notes 7.25% due 09/15/2021		5,609,000		5,545,899
T-Mobile USA, Inc. Company Guar. Notes 6.54% due 04/28/2020		2,386,000		2,463,545
				10,199,731
Chemicals - Diversified — 0.2%
Eastman Chemical Co. Senior Notes 1.50% due 05/26/2023	EUR	360,000		426,093
Westlake Chemical Corp. Company Guar. Notes 3.60% due 08/15/2026*		366,000		366,096
Westlake Chemical Corp. Company Guar. Notes 5.00% due 08/15/2046*		490,000		502,916
				1,295,105
Chemicals - Plastics — 0.1%
A. Schulman, Inc. Company Guar. Notes 6.88% due 06/01/2023*#		1,094,000		1,099,470
Chemicals - Specialty — 0.1%
Lubrizol Corp. Company Guar. Notes 6.50% due 10/01/2034		255,000		348,060
Unifrax I LLC/Unifrax Holding Co. Company Guar. Notes 7.50% due 02/15/2019*		626,000		563,400
				911,460
Coal — 0.3%
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp. Company Guar. Notes 7.38% due 02/01/2020		2,274,000		2,086,395
Coatings/Paint — 0.1%
RPM International, Inc. Senior Notes 5.25% due 06/01/2045		845,000		901,636
Commercial Services - Finance — 0.0%
Automatic Data Processing, Inc. Senior Notes 2.25% due 09/15/2020		235,000		243,094

Security Description	Principal Amount(8)		Value (Note 2)
Computer Services — 0.5%
Harland Clarke Holdings Corp. Senior Sec. Notes 6.88% due 03/01/2020*	$	1,211,000	$	1,165,587
Harland Clarke Holdings Corp. Senior Notes 9.25% due 03/01/2021*		1,359,000		1,161,945
Hewlett Packard Enterprise Co. Senior Bonds 4.90% due 10/15/2025*		255,000		272,584
Hewlett Packard Enterprise Co. Senior Bonds 6.20% due 10/15/2035*		474,000		497,426
Leidos Holdings, Inc. Company Guar. Notes 4.45% due 12/01/2020		1,300,000		1,348,958
				4,446,500
Computer Software — 0.2%
Rackspace Hosting, Inc. Company Guar. Notes 6.50% due 01/15/2024*		1,364,000		1,432,336
Computers — 0.8%
Apple, Inc. Senior Notes 2.45% due 08/04/2026		343,000		343,913
Apple, Inc. Senior Notes 2.85% due 05/06/2021		485,000		511,912
Apple, Inc. Senior Notes 2.85% due 02/23/2023		464,000		487,503
Apple, Inc. Senior Notes 3.85% due 08/04/2046		250,000		260,894
Apple, Inc. Senior Notes 4.50% due 02/23/2036		183,000		211,471
Diamond 1 Finance Corp./Diamond 2 Finance Corp. Senior Sec. Notes 6.02% due 06/15/2026*		1,991,000		2,130,223
Diamond 1 Finance Corp./Diamond 2 Finance Corp. Company Guar. Notes 7.13% due 06/15/2024*		1,221,000		1,322,776
Diamond 1 Finance Corp./Diamond 2 Finance Corp. Senior Sec. Notes 8.10% due 07/15/2036*		520,000		604,056
Diamond 1 Finance Corp./Diamond 2 Finance Corp. Senior Sec. Notes 8.35% due 07/15/2046*		345,000		402,050
				6,274,798
Computers-Integrated Systems — 0.2%
Diebold, Inc. Company Guar. Notes 8.50% due 04/15/2024*		1,847,000		1,879,322
Computers-Memory Devices — 0.2%
Western Digital Corp. Company Guar. Notes 10.50% due 04/01/2024*		1,073,000		1,212,490

92

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Consumer Products - Misc. — 0.0%
Kimberly-Clark Corp. Senior Notes 1.85% due 03/01/2020		179,000	$	182,235
Containers - Metal/Glass — 0.4%
Crown Cork & Seal Co., Inc. Company Guar. Notes 7.38% due 12/15/2026		1,198,000		1,347,750
Owens-Brockway Glass Container, Inc. Company Guar. Notes 5.38% due 01/15/2025*		2,040,000		2,136,900
				3,484,650
Containers - Paper/Plastic — 0.3%
Amcor Finance USA, Inc. Company Guar. Notes 3.63% due 04/28/2026*		540,000		558,628
Brambles USA, Inc. Company Guar. Notes 4.13% due 10/23/2025*		194,000		209,366
Multi-Color Corp. Company Guar. Notes 6.13% due 12/01/2022*		1,354,000		1,413,238
				2,181,232
Cosmetics & Toiletries — 0.0%
Estee Lauder Cos., Inc. Senior Notes 4.38% due 06/15/2045		139,000		162,606
Data Processing/Management — 0.1%
Fidelity National Information Services, Inc. Senior Notes 4.50% due 08/15/2046		231,000		235,630
Fidelity National Information Services, Inc. Company Guar. Notes 5.00% due 10/15/2025		199,000		228,411
				464,041
Diagnostic Equipment — 0.0%
Danaher Corp. Senior Notes 4.38% due 09/15/2045		189,000		229,112
Distribution/Wholesale — 0.1%
LKQ Corp. Company Guar. Notes 4.75% due 05/15/2023		747,000		754,470
WW Grainger, Inc. Senior Notes 3.75% due 05/15/2046		216,000		228,676
				983,146
Diversified Banking Institutions — 2.6%
Bank of America Corp. Senior Notes 2.50% due 07/27/2020	EUR	900,000		1,097,168
Bank of America Corp. Senior Notes 2.60% due 01/15/2019		603,000		616,515
Bank of America Corp. Senior Notes 2.63% due 10/19/2020		289,000		295,942

Security Description	Principal Amount(8)		Value (Note 2)
Diversified Banking Institutions (continued)
Bank of America Corp. Sub. Notes 3.95% due 04/21/2025		253,000	$	263,528
Bank of America Corp. Sub. Notes 4.25% due 10/22/2026		1,129,000		1,196,820
Bank of America Corp. Sub. Notes 6.11% due 01/29/2037		548,000		682,065
Bank of America Corp. Sub. Notes 7.25% due 10/15/2025		39,000		47,498
Citigroup, Inc. Senior Notes 1.75% due 05/01/2018		1,062,000		1,063,644
Citigroup, Inc. Sub. Notes 4.40% due 06/10/2025		314,000		333,056
Citigroup, Inc. Sub. Notes 4.45% due 09/29/2027		932,000		983,189
Citigroup, Inc. Sub. Notes 6.00% due 10/31/2033		275,000		329,395
Goldman Sachs Group, Inc. Senior Notes 2.13% due 09/30/2024	EUR	1,000,000		1,218,091
Goldman Sachs Group, Inc. Senior Notes 2.63% due 08/19/2020	EUR	500,000		610,248
Goldman Sachs Group, Inc. Senior Notes 3.63% due 01/22/2023		569,000		603,456
Goldman Sachs Group, Inc. Sub. Notes 4.25% due 10/21/2025		338,000		358,823
Goldman Sachs Group, Inc. Senior Notes 4.75% due 10/21/2045		173,000		197,964
Goldman Sachs Group, Inc. Sub. Notes 5.15% due 05/22/2045		54,000		59,452
Goldman Sachs Group, Inc. Senior Notes 6.13% due 02/15/2033		751,000		945,687
Goldman Sachs Group, Inc. Sub. Notes 6.75% due 10/01/2037		483,000		615,996
JPMorgan Chase & Co. Senior Notes 2.20% due 10/22/2019		815,000		829,183
JPMorgan Chase & Co. Senior Notes 2.30% due 08/15/2021		311,000		312,892
JPMorgan Chase & Co. Senior Notes 2.63% due 04/23/2021	EUR	900,000		1,119,613
JPMorgan Chase & Co. Senior Notes 2.70% due 05/18/2023		395,000		401,407
JPMorgan Chase & Co. Senior Notes 2.75% due 06/23/2020		247,000		254,377
JPMorgan Chase & Co. Sub. Notes 4.13% due 12/15/2026		631,000		677,297

93

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Diversified Banking Institutions (continued)
JPMorgan Chase & Co. Sub. Notes 4.95% due 06/01/2045		42,000	$	48,598
Morgan Stanley Senior Notes 1.75% due 03/11/2024	EUR	900,000		1,076,025
Morgan Stanley Senior Notes 2.38% due 03/31/2021	EUR	725,000		889,287
Morgan Stanley Senior Notes 2.80% due 06/16/2020		293,000		301,431
Morgan Stanley Senior Notes 3.13% due 07/27/2026		247,000		249,887
Morgan Stanley Sub. Notes 4.10% due 05/22/2023		779,000		826,482
Morgan Stanley Senior Notes 4.75% due 03/22/2017		718,000		731,564
Morgan Stanley Sub. Notes 5.00% due 11/24/2025		1,286,000		1,438,278
Morgan Stanley Senior Notes 6.50% due 12/28/2018	EUR	600,000		769,734
				21,444,592
Diversified Financial Services — 0.1%
USAA Capital Corp. Senior Notes 2.13% due 06/03/2019*		571,000		581,981
Diversified Manufacturing Operations — 0.3%
General Electric Co. Senior Notes 2.70% due 10/09/2022		514,000		537,192
Ingersoll-Rand Global Holding Co., Ltd. Company Guar. Notes 5.75% due 06/15/2043		641,000		801,801
Textron, Inc. Senior Notes 4.00% due 03/15/2026		416,000		439,477
Textron, Inc. Senior Notes 4.63% due 09/21/2016		537,000		537,825
Trinity Industries, Inc. Company Guar. Notes 4.55% due 10/01/2024		402,000		398,824
				2,715,119
Electric Products - Misc. — 0.1%
WESCO Distribution, Inc. Company Guar. Notes 5.38% due 06/15/2024*		1,160,000		1,186,100
Electric - Distribution — 0.1%
Entergy Louisiana LLC 1st. Mtg. Bonds 4.95% due 01/15/2045		885,000		936,972

Security Description	Principal Amount(8)		Value (Note 2)
Electric - Integrated — 1.4%
AES Corp. Senior Notes 5.50% due 03/15/2024	$	1,560,000	$	1,618,500
Arizona Public Service Co. Senior Notes 2.20% due 01/15/2020		281,000		285,453
Black Hills Corp. Senior Notes 3.15% due 01/15/2027#		222,000		224,649
Dominion Resources, Inc. Jr. Sub. Notes 2.96% due 07/01/2019		172,000		176,680
Dominion Resources, Inc. Senior Notes 5.25% due 08/01/2033		719,000		824,786
Duke Energy Corp. Senior Notes 3.75% due 09/01/2046		327,000		330,280
Duke Energy Progress LLC 1st. Mtg. Bonds 2.80% due 05/15/2022		425,000		444,994
Entergy Arkansas, Inc. 1st. Mtg. Bonds 4.95% due 12/15/2044		434,000		459,037
Exelon Generation Co. LLC Senior Notes 2.95% due 01/15/2020		380,000		390,949
FirstEnergy Corp. Senior Notes 7.38% due 11/15/2031		433,000		565,548
Louisville Gas & Electric Co. 1st. Mtg. Bonds 4.38% due 10/01/2045		58,000		67,509
Massachusetts Electric Co. Notes 4.00% due 08/15/2046*		946,000		988,823
Mirant Mid Atlantic LLC Pass Through Trust Pass-Through Certs. Class B 9.13% due 06/30/2017		64,766		58,290
Mirant Mid Atlantic LLC Pass Through Trust Pass-Through Certs. Class C 10.06% due 12/30/2028		1,861,877		1,442,954
South Carolina Electric & Gas Co. 1st. Mtg. Bonds 5.10% due 06/01/2065		284,000		338,220
Southern California Edison Co. 1st. Mtg. Notes 1.13% due 05/01/2017		715,000		715,810
Southern Co. Senior Notes 1.30% due 08/15/2017		614,000		614,608
Talen Energy Supply LLC Senior Notes 4.63% due 07/15/2019*		1,500,000		1,410,000
Trans-Allegheny Interstate Line Co. Senior Notes 3.85% due 06/01/2025*		310,000		330,466
				11,287,556
Electronic Components - Misc. — 0.0%
Corning, Inc. Senior Notes 1.50% due 05/08/2018		313,000		312,538

94

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Electronic Components - Semiconductors — 0.2%
Amkor Technology, Inc. Senior Notes 6.38% due 10/01/2022	$	740,000	$	767,284
Intel Corp. Senior Notes 1.35% due 12/15/2017		1,120,000		1,125,020
				1,892,304
Electronic Measurement Instruments — 0.1%
FLIR Systems, Inc. Senior Notes 3.13% due 06/15/2021		243,000		251,002
Fortive Corp. Company Guar. Notes 4.30% due 06/15/2046*		240,000		267,463
				518,465
Electronic Parts Distribution — 0.0%
Avnet, Inc. Senior Notes 4.63% due 04/15/2026		218,000		226,625
Energy - Alternate Sources — 0.2%
TerraForm Power Operating LLC Company Guar. Notes 5.88% due 02/01/2023*		1,844,000		1,857,830
Enterprise Software/Service — 0.2%
Oracle Corp. Senior Notes 1.90% due 09/15/2021		583,000		584,952
Oracle Corp. Senior Notes 2.65% due 07/15/2026		439,000		443,035
Oracle Corp. Senior Notes 3.85% due 07/15/2036		456,000		480,864
Oracle Corp. Senior Notes 3.90% due 05/15/2035		138,000		145,538
				1,654,389
Finance - Auto Loans — 0.7%
Ally Financial, Inc. Sub. Notes 5.75% due 11/20/2025		2,793,000		2,971,054
Credit Acceptance Corp. Company Guar. Notes 7.38% due 03/15/2023		2,420,000		2,468,400
				5,439,454
Finance - Commercial — 0.1%
Jefferies Finance LLC/JFIN Co-Issuer Corp. Senior Notes 6.88% due 04/15/2022*		768,000		696,960
Jefferies Finance LLC/JFIN Co-Issuer Corp. Senior Notes 7.38% due 04/01/2020*		513,000		489,915
				1,186,875
Finance - Consumer Loans — 0.7%
Enova International, Inc. Company Guar. Notes 9.75% due 06/01/2021		2,943,000		2,473,591

Security Description	Principal Amount(8)		Value (Note 2)
Finance - Consumer Loans (continued)
Navient Corp. Senior Notes 5.63% due 08/01/2033	$	1,439,000	$	1,179,980
OneMain Financial Holdings LLC Company Guar. Notes 6.75% due 12/15/2019*		1,880,000		1,974,000
				5,627,571
Finance - Credit Card — 0.1%
American Express Credit Corp. Senior Notes 2.25% due 05/05/2021		589,000		599,346
Discover Financial Services Senior Notes 3.75% due 03/04/2025		574,000		582,673
				1,182,019
Finance - Investment Banker/Broker — 0.1%
Lehman Brothers Holdings, Inc. Escrow Notes 5.50% due 04/04/2016†		97,000		7,032
Lehman Brothers Holdings, Inc. Escrow Notes 6.75% due 12/28/2017†(7)(14)		111,000		11
Lehman Brothers Holdings, Inc. Escrow Notes 7.50% due 05/11/2038†(7)(14)		143,000		14
TD Ameritrade Holding Corp. Senior Notes 2.95% due 04/01/2022		368,000		383,448
				390,505
Finance - Leasing Companies — 0.1%
International Lease Finance Corp. Senior Notes 5.88% due 08/15/2022		391,000		441,341
Finance - Mortgage Loan/Banker — 0.2%
Quicken Loans, Inc. Company Guar. Notes 5.75% due 05/01/2025*		1,925,000		1,920,765
Finance - Other Services — 0.3%
National Rural Utilities Cooperative Finance Corp. Senior Notes 0.95% due 04/24/2017		261,000		260,930
National Rural Utilities Cooperative Finance Corp. Collateral Trust Bonds 1.10% due 01/27/2017		1,026,000		1,026,491
National Rural Utilities Cooperative Finance Corp. Collateral Trust Bonds 2.00% due 01/27/2020		524,000		531,280
National Rural Utilities Cooperative Finance Corp. Collateral Trust Bonds 2.30% due 11/01/2020		228,000		233,803
				2,052,504
Firearms & Ammunition — 0.1%
FGI Operating Co. LLC/FGI Finance, Inc. Sec. Notes 7.88% due 05/01/2020		1,170,000		974,025
Food - Meat Products — 0.2%
JBS USA LLC/JBS USA Finance, Inc. Senior Notes 5.88% due 07/15/2024*		1,208,000		1,247,260

95

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Food - Misc./Diversified — 0.3%
General Mills, Inc. Senior Notes 2.10% due 11/16/2020	EUR	550,000	$	660,751
Kraft Heinz Foods Co. Company Guar. Notes 2.25% due 05/25/2028	EUR	1,100,000		1,339,419
Kraft Heinz Foods Co. Company Guar. Notes 4.38% due 06/01/2046		103,000		111,419
Kraft Heinz Foods Co. Sec. Notes 4.88% due 02/15/2025*		576,000		634,917
				2,746,506
Food - Retail — 0.2%
Albertsons Cos. LLC/Safeway, Inc. Senior Notes 5.75% due 03/15/2025*		1,025,000		1,060,875
Albertsons Cos. LLC/Safeway, Inc. Senior Notes 6.63% due 06/15/2024*		825,000		885,720
				1,946,595
Food - Wholesale/Distribution — 0.2%
C&S Group Enterprises LLC Senior Sec. Notes 5.38% due 07/15/2022*		1,269,000		1,237,275
Footwear & Related Apparel — 0.2%
Wolverine World Wide, Inc. Company Guar. Notes 5.00% due 09/01/2026*		1,255,000		1,256,569
Gambling (Non-Hotel) — 0.3%
Scientific Games International, Inc. Company Guar. Notes 10.00% due 12/01/2022		2,620,000		2,423,500
Waterford Gaming LLC/Waterford Gaming Financial Corp. Escrow Notes 8.63% due 09/15/2014*†(7)(14)		272,905		3,220
				2,426,720
Gas - Distribution — 0.0%
Dominion Gas Holdings LLC Senior Notes 4.80% due 11/01/2043		249,000		277,132
Hazardous Waste Disposal — 0.1%
Clean Harbors, Inc. Company Guar. Notes 5.13% due 06/01/2021		1,119,000		1,149,773
Home Decoration Products — 0.1%
Newell Rubbermaid, Inc. Senior Notes 4.20% due 04/01/2026		223,000		243,633
Newell Rubbermaid, Inc. Senior Notes 5.38% due 04/01/2036		164,000		195,870
				439,503

Security Description	Principal Amount(8)		Value (Note 2)
Home Furnishings — 0.1%
Tempur Sealy International, Inc. Company Guar. Notes 5.50% due 06/15/2026*		801,000	$	836,645
Hotels/Motels — 0.1%
Interval Acquisition Corp. Company Guar. Notes 5.63% due 04/15/2023		1,161,000		1,201,635
Independent Power Producers — 0.4%
Dynegy, Inc. Company Guar. Notes 7.38% due 11/01/2022		1,550,000		1,530,625
NRG Energy, Inc. Company Guar. Notes 6.25% due 07/15/2022		1,413,000		1,443,026
				2,973,651
Industrial Gases — 0.3%
Air Products & Chemicals, Inc. Senior Notes 0.38% due 06/01/2021	EUR	600,000		679,128
Airgas, Inc. Company Guar. Notes 3.05% due 08/01/2020		161,000		167,001
Praxair, Inc. Senior Notes 1.20% due 02/12/2024	EUR	580,000		685,312
Praxair, Inc. Senior Notes 1.50% due 03/11/2020	EUR	575,000		674,323
				2,205,764
Insurance - Life/Health — 0.3%
Jackson National Life Global Funding Sec. Notes 3.05% due 04/29/2026*		731,000		743,874
Pacific LifeCorp Senior Notes 6.00% due 02/10/2020*		243,000		269,919
Pricoa Global Funding I Senior Sec. Notes 1.35% due 08/18/2017*		634,000		634,818
Principal Life Global Funding II Senior Sec. Notes 3.00% due 04/18/2026*		189,000		193,445
Unum Group Senior Notes 5.75% due 08/15/2042		179,000		204,896
				2,046,952
Insurance - Multi-line — 0.2%
Assurant, Inc. Senior Notes 6.75% due 02/15/2034		1,011,000		1,287,572
MetLife, Inc. Senior Notes 4.60% due 05/13/2046		257,000		279,614
Old Republic International Corp. Senior Notes 3.88% due 08/26/2026		147,000		148,133
				1,715,319

96

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Insurance - Mutual — 0.2%
Massachusetts Mutual Life Insurance Co. Sub. Notes 4.50% due 04/15/2065*	$	328,000	$	333,020
MassMutual Global Funding II Senior Sec. Notes 2.10% due 08/02/2018*		946,000		960,747
MassMutual Global Funding II Senior Sec. Notes 2.50% due 10/17/2022*		387,000		390,933
New York Life Global Funding Sec. Notes 2.10% due 01/02/2019*		264,000		268,503
				1,953,203
Insurance - Reinsurance — 0.1%
Berkshire Hathaway, Inc. Senior Notes 1.15% due 08/15/2018		407,000		407,317
Internet Connectivity Services — 0.3%
Cogent Communications Group, Inc. Senior Sec. Notes 5.38% due 03/01/2022*		1,137,000		1,171,110
Zayo Group LLC/Zayo Capital, Inc. Company Guar. Notes 6.38% due 05/15/2025		1,180,000		1,245,148
				2,416,258
Internet Content - Entertainment — 0.2%
Netflix, Inc. Senior Notes 5.88% due 02/15/2025		1,726,000		1,872,710
Investment Management/Advisor Services — 0.3%
Drawbridge Special Opportunities Fund LP/Drawbridge Special Opportunities Finance Senior Notes 5.00% due 08/01/2021*		2,270,000		2,162,175
Machinery - Farming — 0.2%
John Deere Capital Corp. Senior Notes 1.13% due 06/12/2017		843,000		843,868
John Deere Capital Corp. Senior Notes 1.55% due 12/15/2017		953,000		959,232
				1,803,100
Marine Services — 0.2%
Great Lakes Dredge & Dock Corp. Company Guar. Notes 7.38% due 02/01/2019		1,593,000		1,571,096
Medical Labs & Testing Services — 0.3%
Laboratory Corp. of America Holdings Senior Notes 3.20% due 02/01/2022		149,000		154,836
Laboratory Corp. of America Holdings Senior Notes 3.60% due 02/01/2025		483,000		507,341
Laboratory Corp. of America Holdings Senior Notes 4.70% due 02/01/2045		247,000		271,577
Quest Diagnostics, Inc. Senior Notes 3.45% due 06/01/2026		304,000		316,000

Security Description	Principal Amount(8)		Value (Note 2)
Medical Labs & Testing Services (continued)
Roche Holdings, Inc. Company Guar. Notes 1.35% due 09/29/2017*	$	1,121,000	$	1,125,467
				2,375,221
Medical Products — 0.1%
Baxter International, Inc. Senior Notes 2.60% due 08/15/2026		321,000		317,826
Becton Dickinson and Co. Senior Notes 3.13% due 11/08/2021		337,000		355,399
��
				673,225
Medical - Biomedical/Gene — 0.3%
Amgen, Inc. Senior Notes 1.25% due 02/25/2022	EUR	675,000		790,060
Amgen, Inc. Senior Notes 2.00% due 02/25/2026	EUR	190,000		235,468
Amgen, Inc. Senior Notes 4.40% due 05/01/2045		211,000		226,816
Amgen, Inc. Senior Notes 5.50% due 12/07/2026	GBP	500,000		882,914
				2,135,258
Medical - Drugs — 0.3%
Baxalta, Inc. Company Guar. Notes 3.60% due 06/23/2022		414,000		426,488
Endo Finance LLC/Endo Finco, Inc. Company Guar. Notes 7.25% due 01/15/2022*		1,265,000		1,227,050
Forest Laboratories LLC Company Guar. Notes 4.88% due 02/15/2021*		560,000		622,094
Johnson & Johnson Senior Notes 1.65% due 05/20/2035	EUR	360,000		454,016
				2,729,648
Medical - HMO — 0.4%
Centene Corp. Senior Notes 6.13% due 02/15/2024		1,052,000		1,146,680
Opal Acquisition, Inc. Senior Notes 8.88% due 12/15/2021*		1,477,000		1,240,680
UnitedHealth Group, Inc. Senior Notes 1.40% due 12/15/2017		478,000		480,025
UnitedHealth Group, Inc. Senior Notes 2.13% due 03/15/2021		398,000		405,657
UnitedHealth Group, Inc. Senior Notes 3.35% due 07/15/2022		289,000		311,307
				3,584,349
Medical - Hospitals — 1.3%
CHS/Community Health Systems, Inc. Company Guar. Notes 6.88% due 02/01/2022		1,045,000		867,350

97

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Medical - Hospitals (continued)
HCA, Inc. Senior Sec. Notes 5.25% due 06/15/2026	$	839,000	$	896,681
HCA, Inc. Company Guar. Notes 7.50% due 11/15/2095		2,632,000		2,658,320
IASIS Healthcare LLC/IASIS Capital Corp. Company Guar. Notes 8.38% due 05/15/2019		1,793,000		1,624,906
RegionalCare Hospital Partners Holdings, Inc. Senior Sec. Notes 8.25% due 05/01/2023*		2,020,000		2,057,875
Tenet Healthcare Corp. Senior Sec. Notes 4.75% due 06/01/2020		1,804,000		1,849,100
Tenet Healthcare Corp. Senior Notes 6.88% due 11/15/2031		958,000		792,745
				10,746,977
Metal Processors & Fabrication — 0.2%
Novelis Corp. Company Guar. Notes 6.25% due 08/15/2024*		1,218,000		1,269,765
Metal - Aluminum — 0.2%
Aleris International, Inc. Senior Sec. Notes 9.50% due 04/01/2021*		995,000		1,092,013
Kaiser Aluminum Corp. Company Guar. Notes 5.88% due 05/15/2024*		637,000		675,220
				1,767,233
Mining — 0.0%
Renco Metals, Inc. Escrow Notes 11.50% due 07/01/2003†(7)(14)		75,000		2,250
Multimedia — 0.1%
Time Warner, Inc. Company Guar. Notes 4.85% due 07/15/2045		256,000		293,801
Walt Disney Co. Senior Notes 1.50% due 09/17/2018		402,000		405,604
Walt Disney Co. Senior Notes 1.65% due 01/08/2019		201,000		203,550
				902,955
Networking Products — 0.2%
Cisco Systems, Inc. Senior Notes 1.40% due 02/28/2018		518,000		520,680
Cisco Systems, Inc. Senior Notes 2.13% due 03/01/2019		1,032,000		1,055,844
Cisco Systems, Inc. Senior Notes 2.20% due 02/28/2021		443,000		455,009
				2,031,533
Oil Companies - Exploration & Production — 2.0%
Anadarko Petroleum Corp. Senior Notes 6.45% due 09/15/2036		920,000		1,062,052

Security Description	Principal Amount(8)		Value (Note 2)
Oil Companies - Exploration & Production (continued)
Carrizo Oil & Gas, Inc. Company Guar. Notes 6.25% due 04/15/2023#	$	1,600,000	$	1,580,000
Denbury Resources, Inc. Company Guar. Notes 5.50% due 05/01/2022		955,000		654,175
Denbury Resources, Inc. Sec. Notes 9.00% due 05/15/2021*		1,890,000		1,941,975
Hess Corp. Senior Notes 5.60% due 02/15/2041		256,000		260,886
Hess Corp. Senior Notes 7.88% due 10/01/2029		183,000		222,562
Hilcorp Energy I LP/Hilcorp Finance Co. Senior Notes 5.00% due 12/01/2024*		1,589,000		1,541,330
Hilcorp Energy I LP/Hilcorp Finance Co. Senior Notes 5.75% due 10/01/2025*		86,000		84,280
Laredo Petroleum, Inc. Company Guar. Notes 7.38% due 05/01/2022#		1,552,000		1,567,520
Newfield Exploration Co. Senior Notes 5.38% due 01/01/2026		1,588,000		1,595,940
Noble Energy, Inc. Senior Notes 3.90% due 11/15/2024		513,000		524,018
Noble Energy, Inc. Senior Notes 5.05% due 11/15/2044		301,000		300,447
Occidental Petroleum Corp. Senior Notes 4.40% due 04/15/2046		303,000		336,389
Rex Energy Corp. Sec. Notes 6.25% due 08/01/2022		1,134,445		453,778
Sanchez Energy Corp. Company Guar. Notes 6.13% due 01/15/2023#		1,572,000		1,241,880
SM Energy Co. Senior Notes 5.63% due 06/01/2025#		899,000		840,565
SM Energy Co. Senior Notes 6.50% due 01/01/2023		297,000		291,060
WPX Energy, Inc. Senior Notes 7.50% due 08/01/2020		1,525,000		1,565,984
				16,064,841
Oil Companies - Integrated — 0.2%
Chevron Corp. Senior Notes 1.37% due 03/02/2018		597,000		598,818
Chevron Corp. Senior Notes 1.96% due 03/03/2020		329,000		334,759
Exxon Mobil Corp. Senior Notes 1.31% due 03/06/2018		333,000		334,007
				1,267,584

98

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Oil Field Machinery & Equipment — 0.1%
Forum Energy Technologies, Inc. Company Guar. Notes 6.25% due 10/01/2021	$	849,000	$	804,428
Oil Refining & Marketing — 0.6%
Calumet Specialty Products Partner LP/Calumet Finance Corp. Company Guar. Notes 6.50% due 04/15/2021		1,544,000		1,281,520
Cheniere Corpus Christi Holdings LLC Senior Sec. Notes 7.00% due 06/30/2024*		705,000		754,350
Murphy Oil USA, Inc. Company Guar. Notes 6.00% due 08/15/2023		1,085,000		1,149,557
PBF Holding Co LLC/PBF Finance Corp. Senior Sec. Notes 7.00% due 11/15/2023*		1,460,000		1,387,730
				4,573,157
Oil-Field Services — 0.3%
Bristow Group, Inc. Company Guar. Notes 6.25% due 10/15/2022		1,648,000		1,190,680
SESI LLC Company Guar. Notes 7.13% due 12/15/2021		1,396,000		1,361,100
				2,551,780
Paper & Related Products — 0.7%
Clearwater Paper Corp. Company Guar. Notes 4.50% due 02/01/2023		680,000		677,450
Domtar Corp. Company Guar. Notes 6.75% due 02/15/2044		643,000		728,524
Georgia-Pacific LLC Senior Notes 3.60% due 03/01/2025*		1,152,000		1,236,354
Georgia-Pacific LLC Senior Notes 3.73% due 07/15/2023*		1,253,000		1,347,323
Georgia-Pacific LLC Company Guar. Notes 5.40% due 11/01/2020*		357,000		403,837
International Paper Co. Senior Notes 4.40% due 08/15/2047		536,000		544,661
PH Glatfelter Co. Company Guar. Notes 5.38% due 10/15/2020		917,000		921,585
				5,859,734
Pharmacy Services — 0.1%
Express Scripts Holding Co. Company Guar. Notes 3.00% due 07/15/2023		215,000		218,559
Express Scripts Holding Co. Company Guar. Notes 4.50% due 02/25/2026		371,000		410,024
Express Scripts Holding Co. Company Guar. Notes 4.80% due 07/15/2046		480,000		509,253
				1,137,836

Security Description	Principal Amount(8)		Value (Note 2)
Pipelines — 2.1%
Colorado Interstate Gas Co. LLC /Colorado Interstate Issuing Corp. Company Guar. Notes 4.15% due 08/15/2026*	$	329,000	$	328,027
Columbia Pipeline Group, Inc. Company Guar. Notes 2.45% due 06/01/2018		115,000		115,578
Energy Transfer Equity LP Senior Sec. Notes 7.50% due 10/15/2020		1,105,000		1,209,975
Energy Transfer Partners LP Senior Notes 4.90% due 03/15/2035		344,000		331,599
Energy Transfer Partners LP Senior Notes 6.05% due 06/01/2041		174,000		179,656
Energy Transfer Partners LP Senior Notes 6.63% due 10/15/2036		837,000		906,296
EnLink Midstream Partners LP Senior Notes 4.85% due 07/15/2026		382,000		381,108
Enterprise Products Operating LLC Company Guar. Notes 3.95% due 02/15/2027		239,000		251,562
Enterprise Products Operating LLC Company Guar. Notes 4.85% due 03/15/2044		150,000		158,866
Genesis Energy LP/Genesis Energy Finance Corp. Company Guar. Notes 5.63% due 06/15/2024		937,000		901,863
Genesis Energy LP/Genesis Energy Finance Corp. Company Guar. Notes 6.00% due 05/15/2023		933,000		928,335
Holly Energy Partners LP/Holly Energy Finance Corp. Company Guar. Notes 6.00% due 08/01/2024*		1,407,000		1,435,140
Kinder Morgan Energy Partners LP Company Guar. Notes 3.45% due 02/15/2023		326,000		322,947
Kinder Morgan Energy Partners LP Company Guar. Notes 4.70% due 11/01/2042		216,000		199,605
Kinder Morgan Energy Partners LP Company Guar. Notes 5.63% due 09/01/2041		145,000		148,269
Kinder Morgan, Inc. Company Guar. Notes 5.00% due 02/15/2021*		402,000		435,267
Plains All American Pipeline LP/PAA Finance Corp. Senior Notes 3.60% due 11/01/2024		183,000		177,666
Plains All American Pipeline LP/PAA Finance Corp. Senior Notes 3.85% due 10/15/2023		219,000		218,069
Rose Rock Midstream LP/Rose Rock Finance Corp. Company Guar. Notes 5.63% due 07/15/2022		1,179,000		1,084,680

99

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Pipelines (continued)
Sabine Pass Liquefaction LLC Senior Sec. Notes 5.63% due 04/15/2023	$	825,000	$	868,313
Sabine Pass Liquefaction LLC Senior Sec. Notes 5.88% due 06/30/2026*		600,000		642,000
Sabine Pass Liquefaction LLC Senior Sec. Notes 6.25% due 03/15/2022		737,000		788,590
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. Company Guar. Notes 5.50% due 08/15/2022		1,178,000		1,111,738
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. Company Guar. Notes 5.50% due 09/15/2024*		1,250,000		1,281,250
Tesoro Logistics LP/Tesoro Logistics Finance Corp. Company Guar. Notes 5.88% due 10/01/2020		783,000		805,511
Tesoro Logistics LP/Tesoro Logistics Finance Corp. Company Guar. Notes 6.13% due 10/15/2021		1,440,000		1,508,400
Western Gas Partners LP Senior Notes 4.65% due 07/01/2026		408,000		421,813
				17,142,123
Power Converter/Supply Equipment — 0.0%
Hubbell, Inc. Senior Notes 3.35% due 03/01/2026		355,000		374,103
Printing - Commercial — 0.3%
Quad/Graphics, Inc. Company Guar. Notes 7.00% due 05/01/2022		1,279,000		1,243,827
RR Donnelley & Sons Co. Senior Notes 7.00% due 02/15/2022		1,200,000		1,250,250
				2,494,077
Publishing - Newspapers — 0.2%
Lee Enterprises, Inc. Senior Sec. Notes 9.50% due 03/15/2022*#		1,115,000		1,154,025
McClatchy Co. Senior Sec. Notes 9.00% due 12/15/2022#		533,000		540,995
				1,695,020
Publishing - Periodicals — 0.2%
Emerald Expositions Holdings, Inc. Senior Notes 9.00% due 06/15/2021*		1,773,000		1,830,622
Radio — 0.2%
Sirius XM Radio, Inc. Company Guar. Notes 5.38% due 07/15/2026*		1,197,000		1,231,414
Real Estate Investment Trusts — 0.6%
American Tower Corp. Senior Notes 3.38% due 10/15/2026		258,000		264,668
Columbia Property Trust Operating Partnership LP Company Guar. Notes 3.65% due 08/15/2026		152,000		152,730
CTR Partnership LP/CareTrust Capital Corp. Company Guar. Notes 5.88% due 06/01/2021		1,825,000		1,861,500

Security Description	Principal Amount(8)		Value (Note 2)
Real Estate Investment Trusts (continued)
CubeSmart LP Company Guar. Notes 3.13% due 09/01/2026	$	299,000	$	298,721
DuPont Fabros Technology LP Company Guar. Notes 5.63% due 06/15/2023		644,000		674,590
ESH Hospitality, Inc. Company Guar. Notes 5.25% due 05/01/2025*		1,279,000		1,278,604
Essex Portfolio LP Company Guar. Notes 3.38% due 04/15/2026		145,000		149,746
Federal Realty Investment Trust Senior Notes 3.63% due 08/01/2046		61,000		61,162
Kimco Realty Corp. Senior Notes 2.80% due 10/01/2026		157,000		156,457
				4,898,178
Real Estate Management/Services — 0.2%
Kennedy-Wilson, Inc. Company Guar. Notes 5.88% due 04/01/2024		1,756,000		1,773,560
Real Estate Operations & Development — 0.2%
Greystar Real Estate Partners LLC Senior Sec. Notes 8.25% due 12/01/2022*		1,903,000		2,017,180
Rental Auto/Equipment — 0.3%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. Company Guar. Notes 5.13% due 06/01/2022*		294,000		299,145
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. Company Guar. Notes 5.25% due 03/15/2025*#		730,000		722,700
Herc Rentals, Inc. Sec. Notes 7.50% due 06/01/2022*		1,169,000		1,215,760
				2,237,605
Retail - Appliances — 0.1%
Conn’s, Inc. Company Guar. Notes 7.25% due 07/15/2022#		1,335,000		1,027,950
Retail - Auto Parts — 0.0%
O’Reilly Automotive, Inc. Company Guar. Notes 3.55% due 03/15/2026#		125,000		133,318
Retail - Building Products — 0.0%
Home Depot, Inc. Senior Notes 2.00% due 04/01/2021		34,000		34,714
Retail - Computer Equipment — 0.1%
GameStop Corp. Company Guar. Notes 5.50% due 10/01/2019*#		550,000		560,313
Retail - Discount — 0.1%
Costco Wholesale Corp. Senior Notes 2.25% due 02/15/2022		618,000		635,023
Dollar General Corp. Senior Notes 3.25% due 04/15/2023		429,000		443,311
				1,078,334

100

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Retail - Drug Store — 0.3%
CVS Health Corp. Senior Notes 2.88% due 06/01/2026	$	459,000	$	470,611
CVS Pass-Through Trust Pass-Through Certs. 4.70% due 01/10/2036*		286,975		317,221
CVS Pass-Through Trust Pass-Through Certs. 5.77% due 01/10/2033*		183,592		215,622
CVS Pass-Through Trust Pass-Through Certs. 5.93% due 01/10/2034*		392,226		466,384
Walgreens Boots Alliance, Inc. Senior Notes 3.45% due 06/01/2026		636,000		662,110
Walgreens Boots Alliance, Inc. Senior Notes 4.65% due 06/01/2046		2,000		2,209
				2,134,157
Retail - Restaurants — 0.3%
Landry’s, Inc. Company Guar. Notes 9.38% due 05/01/2020*		1,105,000		1,163,013
McDonald’s Corp. Senior Notes 4.70% due 12/09/2035		67,000		76,869
McDonald’s Corp. Senior Notes 4.88% due 12/09/2045		1,000		1,183
PF Chang’s China Bistro, Inc. Company Guar. Notes 10.25% due 06/30/2020*		1,278,000		1,217,295
				2,458,360
Rubber/Plastic Products — 0.2%
Gates Global LLC/Gates Global Co. Company Guar. Notes 6.00% due 07/15/2022*		1,550,000		1,472,500
Venture Holdings Co. LLC Company Guar. Notes 11.00% due 06/01/2007†(6)(7)(14)(17)		25,000		0
				1,472,500
Satellite Telecom — 0.2%
Hughes Satellite Systems Corp. Company Guar. Notes 7.63% due 06/15/2021		1,734,000		1,851,045
Savings & Loans/Thrifts — 0.6%
Astoria Financial Corp. Senior Notes 5.00% due 06/19/2017		638,000		649,969
First Niagara Financial Group, Inc. Senior Notes 6.75% due 03/19/2020		2,087,000		2,383,204
First Niagara Financial Group, Inc. Sub. Notes 7.25% due 12/15/2021		1,358,000		1,662,250
				4,695,423
Steel Pipe & Tube — 0.1%
Valmont Industries, Inc. Company Guar. Notes 5.25% due 10/01/2054		723,000		688,831

Security Description	Principal Amount(8)		Value (Note 2)
Steel - Producers — 0.5%
AK Steel Corp. Senior Sec. Notes 7.50% due 07/15/2023		1,375,000	$	1,491,875
Steel Dynamics, Inc. Company Guar. Notes 5.13% due 10/01/2021		1,214,000		1,262,560
United States Steel Corp. Senior Sec. Notes 8.38% due 07/01/2021*		850,000		924,375
				3,678,810
Telecom Services — 0.2%
Embarq Corp. Senior Notes 8.00% due 06/01/2036		1,175,000		1,218,328
Telecommunication Equipment — 0.2%
Plantronics, Inc. Company Guar. Notes 5.50% due 05/31/2023*		1,535,000		1,596,400
Telephone - Integrated — 1.6%
AT&T, Inc. Senior Notes 1.45% due 06/01/2022	EUR	650,000		769,151
AT&T, Inc. Senior Notes 3.00% due 06/30/2022		1,018,000		1,049,708
AT&T, Inc. Senior Notes 4.35% due 06/15/2045		560,000		564,567
AT&T, Inc. Senior Notes 4.50% due 05/15/2035		704,000		745,453
AT&T, Inc. Senior Notes 4.75% due 05/15/2046		438,000		468,134
AT&T, Inc. Senior Notes 5.50% due 03/15/2027	GBP	500,000		868,443
AT&T, Inc. Senior Notes 5.80% due 02/15/2019		247,000		272,037
CenturyLink, Inc. Senior Notes 5.63% due 04/01/2025#		248,000		241,800
CenturyLink, Inc. Senior Notes 6.88% due 01/15/2028		536,000		517,320
CenturyLink, Inc. Senior Notes 7.50% due 04/01/2024		740,000		802,438
Frontier Communications Corp. Senior Notes 10.50% due 09/15/2022		1,474,000		1,603,896
Frontier Communications Corp. Senior Notes 11.00% due 09/15/2025		1,318,000		1,423,440
Verizon Communications, Inc. Senior Notes 3.00% due 11/01/2021		610,000		640,349
Verizon Communications, Inc. Senior Notes 4.40% due 11/01/2034		250,000		265,849
Verizon Communications, Inc. Senior Notes 4.67% due 03/15/2055		1,059,000		1,101,323

101

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. CORPORATE BONDS & NOTES (continued)
Telephone - Integrated (continued)
Verizon Communications, Inc. Senior Notes 4.75% due 02/17/2034	GBP	550,000	$	970,239
Verizon Communications, Inc. Senior Notes 4.86% due 08/21/2046		567,000		627,318
Verizon Communications, Inc. Senior Notes 6.40% due 09/15/2033		41,000		53,572
				12,985,037
Transport - Rail — 0.0%
Burlington Northern Santa Fe LLC Senior Notes 3.90% due 08/01/2046		203,000		220,648
Transport - Services — 0.0%
TTX Co. Senior Notes 4.20% due 07/01/2046*		343,000		370,971
Trucking/Leasing — 0.0%
Penske Truck Leasing Co. LP/PTL Finance Corp. Senior Notes 3.38% due 02/01/2022*		213,000		220,382
Wire & Cable Products — 0.3%
Belden, Inc. Company Guar. Notes 5.25% due 07/15/2024*		1,237,000		1,255,555
General Cable Corp. Company Guar. Notes 5.75% due 10/01/2022		982,000		932,586
				2,188,141
Total U.S. Corporate Bonds & Notes
(cost $319,120,967)				328,962,472
FOREIGN CORPORATE BONDS & NOTES — 14.5%
Aerospace/Defense — 0.1%
BAE Systems PLC Senior Notes 4.13% due 06/08/2022	GBP	250,000		376,678
Agricultural Chemicals — 0.1%
Consolidated Energy Finance SA Company Guar. Notes 6.75% due 10/15/2019*		1,016,000		980,440
Airlines — 0.0%
Latam Airlines Group SA* Senior Notes 7.25% due 06/09/2020		300,000		310,200
Airport Development/Maintenance — 0.2%
Heathrow Funding, Ltd. Senior Sec. Notes 1.88% due 05/23/2024	EUR	1,300,000		1,572,501
Heathrow Funding, Ltd. Senior Sec. Notes 6.75% due 12/03/2028	GBP	225,000		434,800
				2,007,301
Appliances — 0.0%
Arcelik AS Senior Notes 5.00% due 04/03/2023		250,000		248,120

Security Description	Principal Amount(8)		Value (Note 2)
Auto - Cars/Light Trucks — 0.4%
Daimler AG Senior Notes 2.75% due 12/04/2020	GBP	475,000	$	672,599
FCE Bank PLC Senior Notes 1.53% due 11/09/2020	EUR	600,000		700,056
FCE Bank PLC Senior Notes 1.62% due 05/11/2023	EUR	600,000		705,530
Kia Motors Corp. Senior Notes 3.25% due 04/21/2026*		200,000		212,783
RCI Banque SA Senior Notes 2.25% due 03/29/2021	EUR	700,000		850,690
Volkswagen International Finance NV Company Guar. Notes 2.38% due 03/22/2017*		151,000		151,710
				3,293,368
Auto/Truck Parts & Equipment - Original — 0.0%
Tupy Overseas SA Company Guar. Notes 6.63% due 07/17/2024		200,000		201,200
Banks - Commercial — 2.0%
Australia & New Zealand Banking Group, Ltd. Senior Notes 1.60% due 07/15/2019		360,000		359,489
Banco de Credito del Peru/Panama Senior Notes 5.38% due 09/16/2020		450,000		498,375
Bank of China, Ltd. Sub. Notes 5.00% due 11/13/2024		275,000		301,218
BPCE SA Senior Notes 2.13% due 03/17/2021	EUR	600,000		732,504
BPCE SA Senior Notes 2.88% due 01/16/2024	EUR	600,000		790,328
Cooperatieve Rabobank UA Senior Notes 4.55% due 08/30/2029	GBP	250,000		426,406
Cooperatieve Rabobank UA Senior Notes 5.25% due 05/23/2041	GBP	190,000		381,293
Cooperatieve Rabobank UA NY Company Guar. Notes 3.75% due 07/21/2026		377,000		381,284
Credit Suisse AG Senior Notes 1.70% due 04/27/2018		262,000		262,188
Credit Suisse NY Senior Notes 3.00% due 10/29/2021		395,000		407,800
Danske Bank A/S FRS Sub. Notes 3.88% due 10/04/2023	EUR	625,000		745,032
DBS Group Holdings, Ltd. Senior Notes 2.25% due 07/16/2019*		798,000		807,942
HBOS PLC Sub. Notes 5.37% due 06/30/2021	EUR	900,000		1,169,231

102

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Banks - Commercial (continued)
ICICI Bank, Ltd. Senior Notes 5.75% due 11/16/2020		350,000	$	394,703
Intesa Sanpaolo SpA Sub. Notes 5.02% due 06/26/2024*		663,000		625,874
Mizuho Bank, Ltd. Company Guar. Notes 2.15% due 10/20/2018*		314,000		316,951
Mizuho Bank, Ltd. Company Guar. Notes 2.45% due 04/16/2019*		385,000		391,103
National Bank of Canada Company Guar. Notes 1.45% due 11/07/2017		1,085,000		1,086,693
National Bank of Canada Bank Guar. Notes 2.10% due 12/14/2018		474,000		479,633
Oversea-Chinese Banking Corp., Ltd. VRS Sub. Notes 4.00% due 10/15/2024*		280,000		293,733
Royal Bank of Canada Sub. Notes 4.65% due 01/27/2026		444,000		488,719
Santander Issuances SAU Company Guar. Notes 5.18% due 11/19/2025		600,000		622,757
Shinhan Bank Sub. Bonds 3.88% due 03/24/2026*		200,000		212,907
Standard Chartered Bank Sub. Notes 5.88% due 09/26/2017	EUR	450,000		531,207
Svenska Handelsbanken AB FRS Sub. Notes 2.66% due 01/15/2024	EUR	1,150,000		1,342,763
Toronto-Dominion Bank Senior Notes 1.80% due 07/13/2021		583,000		579,736
Turkiye Is Bankasi AS Senior Notes 5.38% due 10/06/2021*		200,000		203,000
Westpac Banking Corp. Senior Notes 0.88% due 02/16/2021	EUR	1,200,000		1,389,552
Zenith Bank PLC Senior Notes 6.25% due 04/22/2019*		225,000		217,706
				16,440,127
Banks - Money Center — 0.2%
ABN AMRO Bank NV Senior Notes 2.50% due 11/29/2023	EUR	475,000		614,701
ABN AMRO Bank NV Senior Notes 4.13% due 03/28/2022	EUR	200,000		271,984
Bank of Scotland PLC Sub. Notes 6.38% due 08/16/2019	GBP	275,000		404,663
				1,291,348
Beverages - Non-alcoholic — 0.1%
Coca-Cola Femsa SAB de CV Company Guar. Notes 2.38% due 11/26/2018		856,000		871,231

Security Description	Principal Amount(8)		Value (Note 2)
Beverages - Wine/Spirits — 0.2%
Bacardi, Ltd. Company Guar. Notes 2.75% due 07/15/2026*		198,000	$	197,158
Diageo Capital PLC Company Guar. Notes 5.75% due 10/23/2017		657,000		690,346
Pernod Ricard SA Senior Notes 3.25% due 06/08/2026*		381,000		392,029
				1,279,533
Brewery — 0.2%
Anheuser-Busch InBev SA/NV Company Guar. Notes 0.88% due 03/17/2022	EUR	500,000		572,838
Anheuser-Busch InBev SA/NV Company Guar. Notes 2.75% due 03/17/2036	EUR	720,000		958,315
				1,531,153
Building Products-Cement — 0.1%
CRH Finance BV Company Guar. Notes 5.00% due 01/25/2019	EUR	600,000		749,845
Building - Residential/Commercial — 0.2%
Mattamy Group Corp. Company Guar. Notes 6.50% due 11/15/2020*		1,650,000		1,629,375
Cable/Satellite TV — 0.9%
Altice Financing SA Senior Sec. Notes 7.50% due 05/15/2026*		3,375,000		3,552,187
Altice Luxembourg SA Company Guar. Notes 7.75% due 05/15/2022*		1,100,000		1,170,813
Numericable-SFR SA Senior Sec. Notes 7.38% due 05/01/2026*		2,877,000		2,970,502
				7,693,502
Cellular Telecom — 0.1%
Empresa Nacional de Telecomunicaciones SA Senior Notes 4.88% due 10/30/2024		350,000		359,929
Turkcell Iletisim Hizmetleri AS Notes 5.75% due 10/15/2025*		340,000		355,045
				714,974
Chemicals - Diversified — 0.2%
Israel Chemicals, Ltd. Senior Notes 4.50% due 12/02/2024*		310,000		321,237
NOVA Chemicals Corp. Senior Notes 5.00% due 05/01/2025*		880,000		908,600
Solvay SA Senior Notes 4.63% due 06/27/2018	EUR	600,000		725,785
				1,955,622
Chemicals - Plastics — 0.1%
Mexichem SAB de CV Company Guar. Notes 5.88% due 09/17/2044*		640,000		643,840
Consumer Products - Misc. — 0.1%
Kimberly-Clark de Mexico SAB de CV Senior Notes 3.25% due 03/12/2025*		571,000		578,751

103

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Containers - Metal/Glass — 0.1%
Novelis, Inc. Company Guar. Notes 8.75% due 12/15/2020		500,000	$	523,750
Cruise Lines — 0.2%
Royal Caribbean Cruises, Ltd. Senior Notes 5.25% due 11/15/2022#		402,000		438,180
Royal Caribbean Cruises, Ltd. Senior Notes 7.50% due 10/15/2027		1,101,000		1,329,457
				1,767,637
Diversified Banking Institutions — 1.3%
BNP Paribas SA Senior Notes 2.38% due 11/20/2019	GBP	400,000		549,774
BNP Paribas SA Senior Notes 2.88% due 09/26/2023	EUR	800,000		1,053,468
BNP Paribas SA Sub. Notes 4.38% due 05/12/2026*		209,000		216,173
Credit Agricole SA Senior Notes 3.13% due 02/05/2026	EUR	400,000		552,739
Credit Agricole SA Sub. Notes 3.90% due 04/19/2021	EUR	1,000,000		1,288,787
Credit Agricole SA Sub. Notes 4.38% due 03/17/2025*		239,000		246,048
Credit Agricole SA Senior Notes 5.50% due 12/17/2021	GBP	500,000		807,826
Deutsche Bank AG Senior Notes 3.38% due 05/12/2021		247,000		246,926
Deutsche Bank AG Sub. Notes 4.50% due 04/01/2025#		308,000		291,040
HSBC Holdings PLC Sub. Notes 4.25% due 08/18/2025		224,000		232,649
Lloyds Banking Group PLC Sub. Notes 4.58% due 12/10/2025*		652,000		669,327
Mitsubishi UFJ Financial Group, Inc. Senior Notes 2.95% due 03/01/2021		586,000		604,427
Royal Bank of Scotland PLC FRS Sub. Notes 10.50% due 03/16/2022	EUR	1,965,000		2,307,546
Societe Generale SA Sub. Notes 6.13% due 08/20/2018	EUR	550,000		684,096
UBS AG London Senior Notes 1.13% due 06/30/2020	EUR	1,000,000		1,163,950
				10,914,776
Diversified Manufacturing Operations — 0.0%
Ingersoll-Rand Luxembourg Finance SA Company Guar. Notes 4.65% due 11/01/2044		234,000		261,115

Security Description	Principal Amount(8)		Value (Note 2)
Diversified Minerals — 0.3%
FMG Resources August 2006 Pty, Ltd. Senior Sec. Notes 9.75% due 03/01/2022*		2,059,000	$	2,378,145
E-Commerce/Products — 0.1%
Alibaba Group Holding, Ltd. Senior Notes 3.60% due 11/28/2024		500,000		525,067
Electric - Distribution — 0.0%
State Grid Overseas Investment, Ltd.* Company Guar. Notes 4.13% due 05/07/2024		300,000		335,444
Electric - Generation — 0.4%
Abu Dhabi National Energy Co. PJSC Senior Notes 4.38% due 06/22/2026*		200,000		213,394
Electricite de France SA Senior Notes 2.35% due 10/13/2020*		1,348,000		1,381,412
Electricite de France SA Senior Notes 3.63% due 10/13/2025*		247,000		258,594
Electricite de France SA Senior Notes 4.95% due 10/13/2045*		568,000		650,943
Electricite de France SA Senior Notes 6.00% due 01/22/2114*		267,000		291,922
Electricite de France SA Senior Notes 6.25% due 05/30/2028	GBP	350,000		662,310
				3,458,575
Electric - Integrated — 0.7%
Colbun SA Senior Notes 4.50% due 07/10/2024		300,000		315,723
Enel Finance International NV Company Guar. Notes 5.00% due 09/14/2022	EUR	900,000		1,290,436
Enel Finance International NV Company Guar. Notes 5.63% due 08/14/2024	GBP	225,000		381,378
GDF Suez Senior Notes 2.38% due 05/19/2026	EUR	1,400,000		1,848,834
Iberdrola International BV Company Guar. Notes 2.50% due 10/24/2022	EUR	800,000		1,017,598
Iberdrola International BV Company Guar. Notes 3.00% due 01/31/2022	EUR	700,000		899,499
				5,753,468
Electronic Components - Semiconductors — 0.1%
Sensata Technologies UK Financing Co. PLC Company Guar. Notes 6.25% due 02/15/2026*		785,000		860,556
Finance - Leasing Companies — 0.2%
Fly Leasing, Ltd. Senior Notes 6.38% due 10/15/2021		1,830,000		1,848,300
				2,708,856

104

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Food - Meat Products — 0.1%
BRF SA Senior Notes 7.75% due 05/22/2018*(14)	BRL	1,000,000	$	282,191
Marfrig Holdings Europe BV Company Guar. Notes 8.00% due 06/08/2023*		200,000		207,750
Minerva Luxembourg SA Company Guar. Notes 7.75% due 01/31/2023		310,000		326,027
				815,968
Food-Retail — 0.2%
Casino Guichard Perrachon SA Senior Notes 4.41% due 08/06/2019	EUR	600,000		731,499
Casino Guichard Perrachon SA Senior Notes 4.48% due 11/12/2018	EUR	600,000		738,739
Cencosud SA Company Guar. Notes 5.15% due 02/12/2025		300,000		323,130
				1,793,368
Gas-Distribution — 0.0%
Gas Natural Capital Markets SA Company Guar. Notes 5.13% due 11/02/2021	EUR	200,000		279,331
Gas - Transportation — 0.1%
National Grid Gas PLC Senior Notes 6.00% due 05/13/2038	GBP	90,000		204,824
Transportadora de Gas del Peru SA Senior Notes 4.25% due 04/30/2028#		320,000		331,200
				536,024
Gold Mining — 0.1%
Gold Fields Orogen Holdings BVI, Ltd. Company Guar. Notes 4.88% due 10/07/2020		350,000		348,250
Goldcorp, Inc. Senior Notes 5.45% due 06/09/2044		264,000		288,651
				636,901
Insurance - Life/Health — 0.0%
AIA Group, Ltd. Senior Notes 4.50% due 03/16/2046*		258,000		294,098
Insurance - Multi-line — 0.2%
Willow No 2 Ireland PLC for Zurich Insurance Co., Ltd. Senior Sec. Notes 3.38% due 06/27/2022	EUR	500,000		656,087
XLIT, Ltd. Company Guar. Notes 4.45% due 03/31/2025		264,000		268,875
XLIT, Ltd. Company Guar. Notes 5.50% due 03/31/2045		593,000		596,075
				1,521,037

Security Description	Principal Amount(8)		Value (Note 2)
Investment Management/Advisor Services — 0.1%
China Cinda Finance 2015 I, Ltd. Company Guar. Notes 4.25% due 04/23/2025*		600,000	$	630,756
Machinery - General Industrial — 0.2%
ATS Automation Tooling Systems, Inc. Senior Notes 6.50% due 06/15/2023*		1,394,000		1,421,880
Medical - Drugs — 0.2%
Teva Pharmaceutical Finance Netherlands III BV Company Guar. Notes 2.80% due 07/21/2023		403,000		405,173
Teva Pharmaceutical Finance Netherlands III BV Company Guar. Notes 3.15% due 10/01/2026		443,000		446,042
Teva Pharmaceutical Finance Netherlands III BV Company Guar. Notes 4.10% due 10/01/2046		521,000		531,871
				1,383,086
Medical - Generic Drugs — 0.2%
Actavis Funding SCS Company Guar. Notes 3.00% due 03/12/2020		522,000		538,978
Perrigo Co. PLC Senior Notes 4.00% due 11/15/2023#		758,000		780,728
				1,319,706
Metal Processors & Fabrication — 0.0%
Elementia SAB de CV Company Guar. Notes 5.50% due 01/15/2025		325,000		339,914
Metal - Copper — 0.2%
First Quantum Minerals, Ltd. Company Guar. Notes 7.25% due 05/15/2022*		1,994,000		1,709,855
Metal - Diversified — 0.3%
Glencore Canada Financial Corp. Company Guar. Notes 7.38% due 05/27/2020	GBP	400,000		617,686
Glencore Finance Europe SA Company Guar. Notes 4.63% due 04/03/2018	EUR	550,000		652,455
Glencore Finance Europe SA Company Guar. Notes 6.00% due 04/03/2022	GBP	700,000		1,050,651
				2,320,792
Metal - Iron — 0.0%
Metalloinvest Finance, Ltd. Company Guar. Notes 5.63% due 04/17/2020		350,000		366,436
Oil & Gas Drilling — 0.1%
Pacific Drilling SA Senior Sec. Notes 5.38% due 06/01/2020*		1,472,000		426,880

105

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Oil Companies - Exploration & Production — 0.5%
Anadarko Finance Co. Company Guar. Notes 7.50% due 05/01/2031		514,000	$	623,581
Empresa Nacional del Petroleo Senior Notes 3.75% due 08/05/2026*#		200,000		204,574
MEG Energy Corp. Company Guar. Notes 6.38% due 01/30/2023*		700,000		546,000
MEG Energy Corp. Company Guar. Notes 6.50% due 03/15/2021*		1,495,000		1,225,900
Novatek OAO via Novatek Finance, Ltd. Senior Notes 6.60% due 02/03/2021		350,000		382,812
Pertamina Persero PT Senior Notes 4.88% due 05/03/2022*		600,000		645,537
Tengizchevroil Finance Co., Inc. Company Guar. Notes 4.00% due 08/15/2026*		215,000		214,355
				3,842,759
Oil Companies - Integrated — 0.9%
BP Capital Markets PLC Company Guar. Notes 1.38% due 11/06/2017		1,070,000		1,071,596
BP Capital Markets PLC Company Guar. Notes 1.68% due 05/03/2019		353,000		355,863
BP Capital Markets PLC Company Guar. Notes 2.97% due 02/27/2026	EUR	900,000		1,206,599
BP Capital Markets PLC Company Guar. Notes 3.12% due 05/04/2026		283,000		292,426
BP Capital Markets PLC Company Guar. Notes 3.25% due 05/06/2022		328,000		347,401
BP Capital Markets PLC Company Guar. Notes 4.33% due 12/10/2018	GBP	150,000		212,576
Ecopetrol SA Senior Notes 4.13% due 01/16/2025		300,000		290,250
Lukoil International Finance BV Company Guar. Notes 4.56% due 04/24/2023		350,000		360,557
Petrobras Global Finance BV Company Guar. Notes 8.75% due 05/23/2026		320,000		351,264
Petroleos Mexicanos Company Guar. Notes 5.50% due 06/27/2044		108,000		102,600
Petronas Capital, Ltd. Company Guar. Notes 3.50% due 03/18/2025		500,000		536,347
Sasol Financing International PLC Company Guar. Notes 4.50% due 11/14/2022		600,000		603,000
Shell International Finance BV Company Guar. Notes 1.25% due 11/10/2017		386,000		386,511

Security Description	Principal Amount(8)		Value (Note 2)
Oil Companies - Integrated (continued)
Shell International Finance BV Company Guar. Notes 2.13% due 05/11/2020		422,000	$	430,880
Shell International Finance BV Company Guar. Notes 2.25% due 11/10/2020		446,000		456,234
Shell International Finance BV Company Guar. Notes 4.00% due 05/10/2046		172,000		180,242
Total Capital International SA Company Guar. Notes 2.25% due 06/09/2022		GBP 310,000		436,719
				7,621,065
Oil Refining & Marketing — 0.1%
Reliance Industries, Ltd.* Senior Notes 4.13% due 01/28/2025		500,000		526,808
Thai Oil PCL Senior Notes 3.63% due 01/23/2023*		200,000		210,176
				736,984
Paper & Related Products — 0.2%
Bahia Sul Holdings GmbH Company Guar. Notes 5.75% due 07/14/2026*		200,000		204,500
Cascades, Inc. Company Guar. Notes 5.75% due 07/15/2023*		720,000		728,280
Fibria Overseas Finance, Ltd. Company Guar. Notes 5.25% due 05/12/2024#		250,000		258,425
Inversiones CMPC SA Notes 4.38% due 05/15/2023		250,000		261,113
Klabin Finance SA Company Guar. Notes 5.25% due 07/16/2024*		200,000		201,500
				1,653,818
Petrochemicals — 0.1%
Alpek SAB de CV Company Guar. Notes 5.38% due 08/08/2023*		350,000		386,312
Braskem Finance, Ltd. Company Guar. Notes 5.75% due 04/15/2021		350,000		366,625
				752,937
Pipelines — 0.1%
Southern Gas Corridor CJSC Government Guar. Notes 6.88% due 03/24/2026*		1,000,000		1,121,300
Printing - Commercial — 0.2%
Cimpress NV Company Guar. Notes 7.00% due 04/01/2022*		1,600,000		1,668,000
Real Estate Investment Trusts — 0.0%
Trust F/1401 Senior Notes 5.25% due 01/30/2026*		200,000		213,500

106

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
FOREIGN CORPORATE BONDS & NOTES (continued)
Satellite Telecom — 0.5%
Inmarsat Finance PLC Company Guar. Notes 4.88% due 05/15/2022*		1,915,000	$	1,867,508
Telesat Canada/Telesat LLC Company Guar. Notes 6.00% due 05/15/2017*		2,400,000		2,400,000
				4,267,508
Security Services — 0.2%
Garda World Security Corp. Company Guar. Notes 7.25% due 11/15/2021*		1,423,000		1,298,487
Semiconductor Components - Integrated Circuits — 0.1%
NXP BV/NXP Funding LLC Company Guar. Notes 4.63% due 06/01/2023*		825,000		870,375
Sovereign Agency — 0.0%
MDC-GMTN BV Company Guar. Notes 2.75% due 05/11/2023*		200,000		203,040
Special Purpose Entity — 0.0%
Hellas Telecommunications Luxembourg II SCA FRS Sub. Notes 8.46% due 01/15/2015*†(6)(7)(14)(17)		560,000		0
Steel - Producers — 0.3%
ArcelorMittal Senior Notes 7.25% due 02/25/2022#		2,167,000		2,437,875
Sugar — 0.0%
Cosan Luxembourg SA Company Guar. Notes 7.00% due 01/20/2027*		310,000		326,663
SupraNational Banks — 0.1%
North American Development Bank Senior Notes 2.30% due 10/10/2018		561,000		570,725
Telecom Services — 0.1%
Bharti Airtel International Netherlands BV Company Guar. Notes 5.35% due 05/20/2024		300,000		334,838
GTH Finance BV Company Guar. Notes 7.25% due 04/26/2023*		225,000		242,438
				577,276
Telephone - Integrated — 0.4%
British Telecommunications PLC Senior Notes 1.13% due 06/10/2019	EUR	500,000		575,075
Deutsche Telekom International Finance BV Company Guar. Notes 8.88% due 11/27/2028	GBP	310,000		716,918
Empresa de Telecomunicaciones de Bogota Senior Notes 7.00% due 01/17/2023*	COP	640,000,000		162,063
Oi SA Senior Notes 9.75% due 09/15/2016*†(14)(17)(18)	BRL	530,000		30,511

Security Description	Principal Amount(8)		Value (Note 2)
Telephone - Integrated (continued)
Telecom Italia Capital SA Company Guar. Notes 7.72% due 06/04/2038		581,000	$	637,648
Telefonica Emisiones SAU Company Guar. Notes 4.69% due 11/11/2019	EUR	350,000		447,737
Telefonica Emisiones SAU Company Guar. Notes 5.38% due 02/02/2026	GBP	340,000		583,515
				3,153,467
Transport - Marine — 0.1%
PT Pelabuhan Indonesia II* Senior Notes 4.25% due 05/05/2025		475,000		485,688
Transport - Rail — 0.0%
Canadian Pacific Railway Co. Senior Notes 6.13% due 09/15/2115		283,000		352,888
Transport - Services — 0.0%
Transnet SOC, Ltd. Senior Notes 4.00% due 07/26/2022*		250,000		240,630
Warehousing & Harbor Transportation Services — 0.0%
Global Ports Finance PLC Company Guar. Notes 6.87% due 01/25/2022*		270,000		283,500
Total Foreign Corporate Bonds & Notes
(cost $119,738,263)				119,897,958
FOREIGN GOVERNMENT OBLIGATIONS — 9.1%
Banks - Fiduciary — 0.2%
Central Bank of Tunisia Senior Notes 5.75% due 01/30/2025		1,700,000		1,674,840
Electric - Distribution — 0.1%
Hydro-Quebec Government Guar. Notes 1.38% due 06/19/2017		442,000		443,180
Sovereign — 8.7%
Dominican Republic Senior Bonds 5.88% due 04/18/2024		495,000		530,888
Dominican Republic Senior Notes 6.88% due 01/29/2026*		400,000		462,000
Dominican Republic Senior Notes 8.63% due 04/20/2027		600,000		727,500
Federal Republic of Germany Bonds 0.50% due 02/15/2026	EUR	650,000		769,897
Federal Republic of Germany Bonds 1.75% due 02/15/2024	EUR	1,425,000		1,848,137
Federal Republic of Germany Bonds 2.50% due 08/15/2046	EUR	210,000		368,927
Federal Republic of Germany Bonds 6.25% due 01/04/2030	EUR	970,000		1,993,662
Federative Republic of Brazil Senior Notes 7.13% due 01/20/2037		743,000		884,170

107

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
FOREIGN GOVERNMENT OBLIGATIONS (continued)
Sovereign (continued)
Government of Egypt Senior Notes 5.75% due 04/29/2020		850,000	$	867,187
Government of Egypt Senior Notes 5.88% due 06/11/2025		850,000		803,318
Government of Egypt Senior Notes 6.88% due 04/30/2040		450,000		433,215
Government of Finland Senior Bonds 2.63% due 07/04/2042*	EUR	250,000		419,336
Government of Jamaica Senior Notes 6.75% due 04/28/2028		400,000		454,000
Government of Jamaica Senior Notes 8.00% due 03/15/2039		1,400,000		1,645,000
Government of Romania Senior Notes 6.13% due 01/22/2044		380,000		511,119
Government of Ukraine Senior Notes 7.75% due 09/01/2019		850,000		844,730
Government of Ukraine Senior Notes 7.75% due 09/01/2027		900,000		859,500
Islamic Republic of Pakistan Senior Notes 8.25% due 04/15/2024		400,000		449,025
Kingdom of Belgium Bonds 5.00% due 03/28/2035*	EUR	525,000		1,037,973
Kingdom of Morocco Senior Notes 5.50% due 12/11/2042		420,000		493,185
Oriental Republic of Uruguay Senior Notes 5.10% due 06/18/2050		620,000		654,100
Republic of Argentina Senior Notes 6.25% due 04/22/2019*		756,000		804,762
Republic of Argentina Senior Notes 7.50% due 04/22/2026*		759,000		846,285
Republic of Argentina Senior Notes 7.63% due 04/22/2046*		600,000		678,000
Republic of Chile Senior Notes 3.13% due 01/21/2026#		800,000		860,000
Republic of Chile Senior Bonds 3.63% due 10/30/2042		800,000		860,000
Republic of Colombia Senior Notes 4.50% due 01/28/2026#		400,000		436,000
Republic of Costa Rica Senior Notes 7.16% due 03/12/2045*		460,000		508,300
Republic of Croatia Senior Notes 6.25% due 04/27/2017		1,210,000		1,244,848
Republic of Honduras Senior Notes 7.50% due 03/15/2024		750,000		843,750

Security Description	Principal Amount(8)		Value (Note 2)
Sovereign (continued)
Republic of Honduras Senior Notes 8.75% due 12/16/2020	$	700,000	$	810,250
Republic of Hungary Senior Notes 5.38% due 03/25/2024		830,000		951,429
Republic of Hungary Senior Notes 5.75% due 11/22/2023		1,280,000		1,491,968
Republic of Indonesia Senior Notes 5.95% due 01/08/2046*		840,000		1,064,488
Republic of Indonesia Senior Notes 8.50% due 10/12/2035		560,000		848,234
Republic of Ivory Coast Senior Notes 5.38% due 07/23/2024		600,000		598,596
Republic of Ivory Coast Senior Notes 6.38% due 03/03/2028		500,000		522,600
Republic of Kenya Senior Notes 6.88% due 06/24/2024		1,650,000		1,610,895
Republic of Lebanon Senior Notes 4.00% due 12/31/2017		169,950		168,570
Republic of Lebanon Senior Notes 5.80% due 04/14/2020		780,000		773,565
Republic of Lebanon Senior Notes 6.60% due 11/27/2026		1,250,000		1,237,500
Republic of Lebanon Senior Notes 6.65% due 02/26/2030		400,000		392,080
Republic of Lebanon Senior Notes 8.25% due 04/12/2021		340,000		369,325
Republic of Lithuania Senior Notes 6.63% due 02/01/2022		1,000,000		1,230,000
Republic of Lithuania Senior Notes 7.38% due 02/11/2020		1,275,000		1,510,875
Republic of Mozambique Senior Notes 10.50% due 01/18/2023*		1,291,000		958,826
Republic of Namibia Senior Notes 5.25% due 10/29/2025		800,000		849,016
Republic of Panama Senior Notes 3.75% due 03/16/2025		1,200,000		1,299,000
Republic of Panama Senior Notes 5.20% due 01/30/2020		750,000		829,875
Republic of Panama Senior Notes 6.70% due 01/26/2036		1,430,000		1,991,275
Republic of Paraguay Senior Notes 6.10% due 08/11/2044		570,000		655,500
Republic of Peru Senior Notes 4.13% due 08/25/2027#		377,000		427,895

108

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
FOREIGN GOVERNMENT OBLIGATIONS (continued)
Sovereign (continued)
Republic of Peru Senior Notes 6.55% due 03/14/2037		1,000,000	$	1,410,000
Republic of Poland Senior Notes 4.00% due 01/22/2024		1,190,000		1,320,824
Republic of Poland Senior Notes 5.00% due 03/23/2022		1,700,000		1,945,058
Republic of Serbia Senior Notes 7.25% due 09/28/2021		1,400,000		1,622,264
Republic of South Africa Senior Bonds 4.88% due 04/14/2026		700,000		728,000
Republic of South Africa Senior Notes 5.88% due 09/16/2025		700,000		785,750
Republic of Sri Lanka Senior Notes 6.83% due 07/18/2026*		550,000		591,165
Republic of Sri Lanka Senior Notes 6.85% due 11/03/2025*		700,000		751,605
Republic of Sri Lanka Senior Notes 6.85% due 11/03/2025		800,000		858,977
Republic of the Philippines Senior Notes 7.75% due 01/14/2031		260,000		411,492
Republic of the Philippines Senior Notes 9.50% due 02/02/2030		740,000		1,291,156
Republic of Turkey Senior Notes 3.25% due 03/23/2023		2,130,000		2,021,753
Republic of Turkey Senior Notes 4.88% due 04/16/2043		1,090,000		1,042,247
Republic of Turkey Notes 6.63% due 02/17/2045		400,000		477,532
Republic of Turkey Senior Notes 11.88% due 01/15/2030		450,000		763,313
Russian Federation Senior Notes 5.88% due 09/16/2043		400,000		472,953
Russian Federation Senior Bonds 12.75% due 06/24/2028		500,000		900,730
United Kingdom Gilt Treasury Bonds 3.50% due 01/22/2045	GBP	450,000		908,679
United Kingdom Gilt Treasury Bonds 4.50% due 09/07/2034	GBP	750,000		1,539,221
United Mexican States Senior Notes 3.60% due 01/30/2025		1,767,000		1,873,020
United Mexican States Senior Notes 4.13% due 01/21/2026#		600,000		657,750

Security Description	Principal Amount(8)		Value (Note 2)
Sovereign (continued)
United Mexican States Senior Notes 4.35% due 01/15/2047	$	1,271,000	$	1,310,719
United Mexican States Senior Bonds 4.75% due 03/08/2044		1,842,000		2,028,502
United Mexican States Senior Notes 6.05% due 01/11/2040		1,550,000		2,005,312
				72,448,598
Total Foreign Government Obligations
(cost $70,755,651)				74,566,618
U.S. GOVERNMENT AGENCIES — 22.6%
Federal Home Loan Mtg. Corp. — 8.4%
2.20% due 02/01/2037 FRS		45,072		46,925
2.50% due 01/01/2028		297,598		308,910
2.50% due 04/01/2028		657,856		682,903
2.97% due 11/01/2037 FRS		278,402		294,234
3.00% due 11/01/2026		2,711,732		2,844,291
3.00% due 04/01/2043		565,781		593,181
3.00% due 08/01/2043		777,388		807,858
3.00% due 07/01/2045		4,644,951		4,824,048
3.00% due 10/01/2045		546,377		567,444
3.00% due 12/01/2045		284,935		295,922
3.00% due 09/14/2046		5,830,000		6,049,308
3.50% due 02/01/2042		515,977		544,438
3.50% due 03/01/2042		399,435		422,097
3.50% due 04/01/2042		702,475		745,048
3.50% due 08/01/2042		678,407		723,181
3.50% due 09/01/2043		69,013		72,695
3.50% due 03/01/2045		856,893		902,666
3.50% due 07/01/2045		287,203		302,684
3.50% due 08/01/2045		349,444		371,219
3.50% due 10/01/2045		180,420		190,023
3.50% due 11/01/2045		252,446		265,883
3.50% due 01/01/2046		4,241,075		4,466,813
3.50% due 03/01/2046		6,268,917		6,602,590
3.50% due 09/14/2046		4,160,000		4,380,837
4.00% due 09/01/2040		1,502,929		1,614,641
4.00% due 10/01/2043		40,898		43,837
4.00% due 12/01/2043		3,873,815		4,203,781
4.00% due 07/01/2044		345,711		369,782
4.00% due 10/01/2045		4,973,576		5,320,769
4.00% due 11/01/2045		4,651,600		4,976,170
4.50% due 02/01/2020		15,126		15,749
4.50% due 08/01/2020		6,642		6,804
4.50% due 03/01/2023		34,021		34,851
4.50% due 01/01/2039		18,831		20,597
4.50% due 03/01/2039		2,718,164		3,037,053
4.50% due 12/01/2039		26,440		28,886
4.50% due 07/01/2040		1,494,806		1,659,731
4.50% due 04/01/2044		525,510		574,347
4.50% due 07/01/2044		1,620,356		1,783,376
4.50% due 09/01/2044		1,945,713		2,125,503
4.50% due 03/01/2046		2,586,727		2,832,090
5.00% due 05/01/2034		95,807		105,595
5.00% due 11/01/2043		76,255		84,927
5.50% due 06/01/2022		34,653		37,367
5.50% due 07/01/2035		27,674		31,356
6.00% due 03/01/2040		83,929		96,028
6.50% due 02/01/2036		14,397		17,050

109

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		Value (Note 2)
U.S. GOVERNMENT AGENCIES (continued)
Federal Home Loan Mtg. Corp. (continued)
Federal Home Loan Mtg. Corp. REMIC FRS Series 3572, Class JS 6.29% due 09/15/2039(3)(9)(10)	$	289,757	$	43,156
Federal Home Loan Mtg. Corp. Structured Agency Credit Risk
Series 2014-HQ1, Class M1
2.17% due 08/25/2024 FRS(3)		18,822		18,845
Series 2014-DN1, Class M2
2.72% due 02/25/2024 FRS(3)		167,000		171,185
Series 2014-HQ2, Class M2
2.72% due 09/25/2024 FRS(3)		300,000		307,431
Series 2015-HQ1, Class M2
2.72% due 03/25/2025 FRS(3)		500,000		508,691
Series 2014-HQ3, Class M2
3.17% due 10/25/2024 FRS(3)		1,077,886		1,092,106
Series 2015-HQA1, Class M2
3.17% due 03/25/2028 FRS(3)		823,000		843,108
				69,310,010
Federal National Mtg. Assoc. — 11.0%
1.00% due 08/01/2044		1,410,725		1,543,893
1.00% due 08/01/2045		3,573,145		3,999,510
2.43% due 09/01/2035 FRS		217,201		227,835
2.50% due 12/01/2026		1,076,206		1,115,605
2.50% due 09/01/2027		1,677,203		1,734,503
2.50% due 02/01/2031		531,302		549,441
2.50% due 05/01/2031		2,580,169		2,668,256
2.50% due September 15 TBA		3,402,000		3,515,223
2.58% due 10/01/2035 FRS		232,840		246,481
2.58% due 10/01/2040 FRS		72,543		76,880
2.59% due 05/01/2037 FRS		68,823		71,986
2.67% due 10/01/2040 FRS		136,283		144,346
2.67% due 05/01/2040 FRS		261,475		275,997
2.76% due 11/01/2036 FRS		118,632		125,742
2.77% due 07/01/2039 FRS		188,815		197,861
2.97% due 08/01/2035 FRS		154,993		163,778
3.00% due 04/01/2027		1,514,462		1,587,907
3.00% due 10/01/2027		331,118		346,869
3.00% due 12/01/2027		326,530		342,362
3.00% due 10/01/2030		537,826		563,409
3.00% due 03/01/2042		575,935		598,779
3.00% due 12/01/2042		213,481		223,271
3.00% due 05/01/2043		448,934		466,866
3.00% due 02/01/2045		304,360		316,077
3.00% due 06/01/2045		375,289		393,012
3.00% due 08/01/2045		2,879,784		2,990,654
3.00% due 05/01/2046		5,906,126		6,133,509
3.00% due September 15 TBA		2,951,000		3,089,789
3.00% due September 30 TBA		3,152,000		3,270,692
3.50% due 09/01/2026		322,169		341,203
3.50% due 08/01/2027		143,875		152,036
3.50% due 10/01/2028		327,369		348,622
3.50% due 06/01/2042		292,733		309,571
3.50% due 07/01/2042		132,330		137,151
3.50% due 08/01/2042		901,155		946,328
3.50% due 09/01/2042		713,549		754,594
3.50% due 07/01/2045		249,336		262,979
3.50% due 08/01/2045		491,816		521,460
3.50% due 10/01/2045		571,536		609,727
3.50% due 11/01/2045		593,934		627,053
3.50% due 12/01/2045		5,646,601		5,950,451
3.50% due 02/01/2046		1,850,207		1,949,768
3.50% due 03/01/2046		6,143,975		6,474,588

Security Description	Principal Amount(8)		Value (Note 2)
Federal National Mtg. Assoc. (continued)
3.50% due September 15 TBA	$	3,039,000	$	3,208,935
3.50% due September 30 TBA		3,791,000		3,994,914
4.00% due 11/01/2025		187,510		199,736
4.00% due 06/01/2039		406,963		448,241
4.00% due 09/01/2040		366,235		393,366
4.00% due 12/01/2040		48,856		52,520
4.00% due 11/01/2041		432,882		465,464
4.00% due 01/01/2042		325,710		348,708
4.00% due 01/01/2043		2,948,877		3,207,278
4.00% due 10/01/2043		20,270		21,767
4.00% due 12/01/2043		376,095		411,945
4.00% due 10/01/2044		659,825		706,511
4.00% due 11/01/2044		4,180,708		4,475,407
4.00% due 02/01/2045		255,268		273,871
4.00% due September 30 TBA		3,783,000		4,052,539
4.50% due 06/01/2019		12,630		12,945
4.50% due 06/01/2039		2,745,476		3,028,129
4.50% due 11/01/2040		92,176		101,110
4.50% due 05/01/2041		123,060		134,960
4.50% due 07/01/2041		67,330		73,509
4.50% due 03/01/2042		422,859		463,976
4.50% due 08/01/2044		635,023		693,701
4.50% due 10/01/2044		1,196,794		1,307,269
4.50% due 12/01/2044		20,606		22,486
4.50% due September 30 TBA		2,406,000		2,628,179
5.00% due 01/01/2023		67,489		72,379
5.00% due 04/01/2023		43,871		47,061
5.00% due 03/01/2037		12,609		13,956
5.00% due 05/01/2040		413,108		459,401
5.00% due 06/01/2040		104,502		115,967
5.00% due 07/01/2040		151,766		168,453
5.00% due 02/01/2045		906,859		1,025,149
5.50% due 08/01/2037		382,031		432,557
5.50% due 06/01/2038		50,573		57,322
6.00% due 02/01/2032		3,536		4,045
6.00% due 10/01/2034		139		159
6.00% due 09/01/2038		97,599		111,838
6.00% due 11/01/2038		29,506		33,794
6.00% due 06/01/2040		24,343		27,868
6.50% due 11/01/2037		60,138		71,885
Federal National Mortgage Assoc. REMIC FRS Series 2014-C01, Class M1 2.12% due 01/25/2024(3)		425,593		428,696
				90,164,060
Government National Mtg. Assoc. — 3.2%
3.00% due 02/20/2045		325,777		341,753
3.00% due 05/20/2045		242,132		254,006
3.00% due 07/20/2045		72,018		75,550
3.00% due 11/20/2045		2,950,353		3,095,034
3.00% due 04/20/2046		4,390,603		4,605,911
3.00% due September 30 TBA		281,000		294,391
3.50% due 03/20/2045		245,986		261,149
3.50% due 04/20/2045		363,216		385,598
3.50% due 07/20/2045		239,939		254,764
3.50% due 10/20/2045		6,564,290		6,970,221
3.50% due 05/20/2046		2,951,913		3,136,627
4.00% due 03/20/2044		116,425		124,440
4.00% due 10/20/2045		1,019,225		1,089,537
4.50% due 09/20/2045		1,494,546		1,613,050
4.50% due 10/20/2045		1,249,212		1,348,263
4.50% due 02/20/2046		804,415		869,032
4.50% due 05/20/2046		1,203,821		1,299,274
				26,018,600

110

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Principal Amount(8)		��	Value (Note 2)
U.S. GOVERNMENT AGENCIES (continued)
Tennessee Valley Authority — 0.0%
Tennessee Valley Authority 1.75% due 10/15/2018	$	316,000		$	321,235
Total U.S. Government Agencies
(cost $184,827,753)					185,813,905
U.S. GOVERNMENT TREASURIES — 5.7%
United States Treasury Bonds — 1.7%
2.50% due 02/15/2046		7,629,000			8,060,817
2.50% due 05/15/2046		48,000			50,803
2.88% due 08/15/2045		19,000			21,608
3.00% due 11/15/2044		96,000			111,750
3.00% due 05/15/2045		189,000			220,037
3.00% due 11/15/2045		1,222,000			1,424,060
3.13% due 11/15/2041		475,000			564,081
3.38% due 05/15/2044		40,000			49,814
4.50% due 02/15/2036		2,249,000			3,215,191
5.25% due 11/15/2028		67,000			93,423
					13,811,584
United States Treasury Notes — 4.0%
0.13% due 04/15/2018 TIPS(11)		1,258,442			1,264,411
0.50% due 04/30/2017		3,500,000			3,498,359
0.50% due 07/31/2017		7,250,000			7,238,675
0.75% due 01/15/2017		773,600			774,598
0.75% due 01/31/2018		506,000			505,941
1.13% due 02/28/2021		1,164,000			1,162,454
1.13% due 06/30/2021		1,093,000			1,089,798
1.13% due 07/31/2021#		1,100,000			1,096,391
1.25% due 11/30/2018		2,936,000			2,962,492
1.38% due 07/31/2018		57,000			57,612
1.38% due 04/30/2020		756,000			764,889
1.38% due 01/31/2021		247,000			249,238
1.50% due 01/31/2022		191,000			193,201
1.63% due 08/15/2022		191,000			194,216
1.63% due 05/15/2026		2,408,000			2,417,124
1.75% due 12/31/2020		601,000			616,142
2.00% due 07/31/2022		225,000			233,481
2.00% due 02/15/2025		472,000			489,515
2.00% due 08/15/2025		1,500,000			1,554,962
2.13% due 12/31/2021		278,000			290,304
2.25% due 11/15/2025		5,700,000			6,031,757
2.75% due 02/15/2024		140,000			152,802
3.63% due 08/15/2019		52,000			56,079
					32,894,441
Total U.S. Government Treasuries
(cost $45,183,087)					46,706,025
LOANS(5)(12)(13) — 0.4%
Casino Hotels — 0.2%
Caesars Entertainment Resort Properties LLC FRS BTL-B 7.00% due 10/11/2020		1,225,000			1,195,906
E-Commerce/Services — 0.1%
Rentpath, Inc. FRS 2nd Lien 10.00% due 12/17/2022		1,202,597			950,052
Electronic Components-Semiconductors — 0.1%
SunEdison Semiconductor, Ltd. FRS 1st Lien 6.50% due 05/27/2019		926,014			921,384
Total Loans
(cost $3,288,648)					3,067,342

Security Description	Shares/ Principal Amount(8)		Value (Note 2)
MUNICIPAL BONDS & NOTES — 0.1%
Port Authority of New York & New Jersey Revenue Bonds Series 174 4.46% due 10/01/2062 (cost $648,000)		648,000	$	765,942
COMMON STOCKS — 0.0%
Television — 0.0%
ION Media Networks, Inc.†(7)(14) (cost $3)		316		376,404
PREFERRED SECURITIES — 0.1%
Electric-Distribution — 0.0%
Entergy Louisiana LLC 4.70%		11,675		295,027
Sovereign Agency — 0.0%
Federal Home Loan Mtg. Corp. FRS Series Z 8.38%†#		4,350		16,095
Telecom Services — 0.1%
Qwest Corp. 6.13%		22,650		575,310
Total Preferred Securities
(cost $925,289)				886,432
PREFERRED SECURITIES/CAPITAL SECURITIES — 2.3%
Banks - Commercial — 0.1%
Standard Chartered PLC VRS 7.50% due 04/02/2022*(2)		1,033,000		1,031,967
Banks - Super Regional — 0.1%
Fifth Third Bancorp FRS Series J 4.90% due 09/30/2019(2)		637,000		624,260
Wells Fargo Capital X 5.95% due 12/01/2086		220,000		243,100
				867,360
Diversified Banking Institutions — 0.6%
Citigroup, Inc. FRS Series P 5.95% due 05/15/2025(2)		1,913,000		1,976,368
JPMorgan Chase & Co. FRS Series U 6.13% due 04/30/2024(2)		1,765,000		1,889,653
Royal Bank of Scotland Group PLC VRS 8.00% due 08/10/2025(2)		245,000		237,087
Societe Generale SA FRS 7.88% due 12/18/2023*(2)		551,000		547,694
				4,650,802
Electric - Integrated — 0.2%
Dominion Resources, Inc. FRS 5.75% due 10/01/2054		369,000		380,992
Enel SpA FRS 6.50% due 01/10/2074	EUR	325,000		397,401
Engie SA FRS 3.88% due 07/10/2018(2)	EUR	600,000		705,143
Gas Natural Fenosa Finance BV FRS 4.13% due 11/18/2022(2)	EUR	200,000		232,638
				1,716,174

111

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

Security Description	Shares/ Principal Amount(8)		Value (Note 2)
PREFERRED SECURITIES/CAPITAL SECURITIES (continued)
Finance - Investment Banker/Broker — 0.0%
Lehman Brothers Holdings Capital Trust VII Escrow Security 0.00% †(7)(14)		101,000	$	10
Finance - Other Services — 0.1%
National Rural Utilities Cooperative Finance Corp. FRS 4.75% due 04/30/2043		545,000		550,556
Financial Guarantee Insurance — 0.3%
Assured Guaranty Municipal Holdings, Inc. FRS 6.40% due 12/15/2066*		2,685,000		2,040,600
Food - Dairy Products — 0.2%
Land O’Lakes Capital Trust I 7.45% due 03/15/2028*		1,800,000		1,977,750
Gas - Distribution — 0.0%
Centrica PLC VRS 3.00% due 04/10/2076	EUR	225,000		250,286
Insurance - Life/Health — 0.2%
Prudential Financial, Inc. FRS 5.38% due 05/15/2045		181,000		190,050
Prudential Financial, Inc. FRS 5.63% due 06/15/2043		1,535,000		1,646,288
				1,836,338
Insurance - Multi-line — 0.1%
MetLife Capital Trust IV 7.88% due 12/15/2067*		237,000		297,435
MetLife, Inc. 6.40% due 12/15/2066		603,000		677,169
				974,604
Insurance - Reinsurance — 0.2%
Muenchener Rueckversicherungs- Gesellschaft AG FRS 7.63% due 06/21/2028	GBP	850,000		1,226,310
Oil Companies - Integrated — 0.1%
TOTAL SA FRS 3.88% due 05/18/2022(2)	EUR	550,000		658,909
Pipelines — 0.0%
Transcanada Trust FRS 5.63% due 05/20/2075		229,000		227,284
Tools - Hand Held — 0.1%
Stanley Black & Decker, Inc. FRS 5.75% due 12/15/2053#		726,000		777,909
Total Preferred Securities/Capital Securities
(cost $18,175,595)				18,786,859
Total Long-Term Investment Securities
(cost $775,429,901)				792,755,069
SHORT-TERM INVESTMENT SECURITIES — 10.2%
Registered Investment Companies — 2.1%
State Street Navigator Securities Lending Prime Portfolio 0.43%(15)(16)		17,336,295		17,336,295
Time Deposits — 8.1%
Euro Time Deposit with State Street Bank and Trust Co. 0.01% due 09/01/2016		66,823,000		66,823,000

Security Description	Principal Amount(8)			Value (Note 2)
Total Short-Term Investment Securities
(cost $84,159,295)				$	84,159,295
TOTAL INVESTMENTS
(cost $859,589,196)(4)		106.5	%		876,914,364
Liabilities in excess of other assets		(6.5	)		(53,450,175	)
NET ASSETS		100.0	%	$	823,464,189

* 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 August 31, 2016, the aggregate value of these securities was $179,954,930 representing 21.3% 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) Perpetual maturity — maturity date reflects the next call date.

(3) Collateralized Mortgage Obligation

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

(5) All loans in the Fund were purchased through assignment agreements unless otherwise indicated.

(6) Security in default of interest and principal at maturity.

(7) Fair valued security. Securities are classified as Level 3 based on the securities valuation inputs (see Note 2).

(8) Denominated in United States Dollars unless otherwise indicated.

(9) Interest Only

(10) Inverse Floating Rate Security that pays interest that varies inversely to changes in the market interest rates. The interest rate shown is the current interest rate at August 31, 2016.

(11) Principal amount of security is adjusted for inflation.

(12) 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.

(13) The Fund invests in senior loans which generally pay interest at rates which are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the London Inter-Bank Offer Rate (“LIBOR”) or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. Senior loans are generally considered to be restrictive in that the Fund is ordinarily contractually obligated to receive approval from the Agent Bank and/or borrower prior to the disposition of a senior loan.

(14) Illiquid security. At August 31, 2016, the aggregate value of these securities was $752,045 representing 0.1% of net assets.

(15) The rate shown is the 7-day yield as of August 31, 2016.

(16) At August 31, 2016, the Fund had loaned securities with a total value of $17,846,983. This was secured by collateral of $17,336,295, which was received in cash and subsequently invested in short-term investments currently valued at $17,336,295 as reported in the Portfolio of Investments. Additional collateral of $876,922 was received in the form of fixed income pooled securities, which the Fund cannot sell or repledge. The components of the fixed income pooled securities referenced above are as follows:

The components of the fixed income pooled secutities referenced above are as follows:
Securities	Coupon Range	Maturity Date Range	Value as of August 31, 2016
United States Treasury Bills	0.00%	11/25/2016	$  12,664
United States Treasury Notes/Bonds	0.13% to 7.63%	01/15/2017 to 11/15/2045	864,258

(17) Company has filed for bankruptcy protection.

(18) Security in default.

BTL—Bank Term Loan

112

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

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.

TIPS—Treasury Inflation Protected Security

FRS—Floating Rate Security

VRS—Variable Rate Security

The rates shown on FRS and VRS are the current interest rates at August 31, 2016 and unless

noted otherwise, the dates are the original maturity dates.

Currency Legend

BRL—Brazilian Real

COP—Columbian Peso

EUR—Euro Dollar

GBP—British Pound

Forward Foreign Currency Contracts
Counterparty	Contract to Deliver			In Exchange For			Delivery Date		Unrealized Appreciation		Unrealized Depreciation
JPMorgan Chase Bank N.A		EUR	23,350,000		USD	25,748,667		09/09/2016	$	–	$	(303,400	)
		EUR	32,800,000		USD	36,652,360		09/30/2016		21,154		–
		GBP	12,370,000		USD	16,044,263		09/30/2016		–		(210,650	)
		USD	6,929,313		EUR	6,275,000		09/09/2016		71,831		–
Net Unrealized Appreciation/(Depreciation)									$	92,985	$	(514,050	)

EUR—Euro Dollar

GBP—British Pound

USD—United States Dollar

The following is a summary of the inputs used to value the Fund’s net assets as of August 31, 2016 (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	$	—	$	12,925,112	$	—	$	12,925,112
U.S. Corporate Bonds & Notes:
Airlines.		—		2,329,436		57,434		2,386,870
Finance - Investment Banker/Broker		—		390,480		25		390,505
Gambling (Non-Hotel)		—		2,423,500		3,220		2,426,720
Mining		—		—		2,250		2,250
Rubber/Plastic Products		—		1,472,500		0		1,472,500
Other Industries		—		322,283,627		—		322,283,627
Foreign Corporate Bonds & Notes:
Special Purpose Entity		—		—		0		0
Other Industries		—		119,897,958		—		119,897,958
Foreign Government Obligations		—		74,566,618		—		74,566,618
U.S. Government Agencies		—		185,813,905		—		185,813,905
U.S. Government Treasuries		—		46,706,025		—		46,706,025
Loans		—		3,067,342		—		3,067,342
Municipal Bonds & Notes		—		765,942		—		765,942
Common Stocks		—		—		376,404		376,404
Preferred Securities		886,432		—		—		886,432
Preferred Securities/Capital Securities :
Finance - Investment Banker/Broker		—		—		10		10
Other Industries		—		18,786,849		—		18,786,849
Short-Term Investment Securities:
Registered Investment Companies		17,336,295		—		—		17,336,295
Time Deposits		—		66,823,000		—		66,823,000
Total Investments at Value	$	18,222,727	$	858,252,294	$	439,343	$	876,914,364
Other Financial Instruments:+
Forward Foreign Currency Contracts	$	—	$	92,985	$	—	$	92,985
LIABILITIES:
Other Financial Instruments:+
Forward Foreign Currency Contracts	$	—	$	514,050	$	—	$	514,050

* 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.

113

VALIC Company II Strategic Bond Fund

PORTFOLIO OF INVESTMENTS — August 31, 2016 — (continued)

The Fund’s policy is to recognize transfers between Levels as of the end of the reporting period. There were no material transfers between Levels during the reporting period.

At the beginning and end of the reporting period, Level 3 investments were not considered a material portion of the Fund.

See Notes to Financial Statements

114

VALIC Company II

STATEMENTS OF ASSETS AND LIABILITIES — August 31, 2016

	AGGRESSIVE GROWTH LIFESTYLE FUND		CAPITAL APPRECIATION FUND		CONSERVATIVE GROWTH LIFESTYLE FUND		CORE BOND FUND			HIGH YIELD BOND FUND
ASSETS:
Investments at value (unaffiliated)*†	$	–	$	85,329,301	$	–	$	1,258,501,712		$	587,894,712
Investments at value (affiliated)*		535,371,651				328,443,767		–			–
Repurchase agreements (cost approximates value)		–		–		–		–			40,493,000
Total investments		535,371,651		85,329,301		328,443,767		1,258,501,712			628,387,712
Cash		–		276		24,760		130			345
Foreign cash*		–		–		–		–			–
Due from broker		–		–		–		–			–
Receivable for:
Fund shares sold		34,000		14,295		34,090		1,368,000			625,600
Dividends and interest		–		96,419		–		7,379,642			8,953,330
Investments sold		260,738		–		6,303		854,095			2,872,908
Payments on swap contracts		–		–		–		–			274,354
Securities lending income		–		4,677		–		11,072			34,894
Prepaid expenses and other assets		14,479		10,130		10,968		27,372			19,229
Due from investment adviser for expense reimbursements/fee waivers		22,233		11,089		16,254		36,532			39,683
Variation margin on futures contracts		–		–		–		–			–
Unrealized appreciation on forward foreign currency contracts		–		–		–		–			96,072
Swap premiums paid		–		–		–		–			651,294
Unrealized appreciation on swap contracts		–		–		–		–			578,855
TOTAL ASSETS		535,703,101		85,466,187		328,536,142		1,268,178,555			642,534,276
LIABILITIES:
Payable for:
Fund shares reacquired		293,738		2,600		39,393		60,093			17,703
Investments purchased		–		–		–		48,514,496			2,924,773
Payments on swap contracts		–		–		–		–			–
Investment advisory and management fees		45,365		40,012		27,847		446,176			294,692
Shareholder services		–		18,187		–		260,332			121,438
Administrative service fees		–		4,910		–		70,289			32,788
Transfer agent fees and expenses		128		255		128		255			255
Trustees’ fees and expenses		15,301		5,601		10,047		33,140			18,691
Other accrued expenses		103,370		56,079		69,095		158,616			100,681
Variation margin on futures contracts		–		–		–		–			–
Accrued foreign tax on capital gains		–		–		–		–			–
Collateral upon return of securities loaned		–		392,881		–		15,720,177			48,280,053
Line of credit		–		–		–		–			–
Due to broker		–		–		–		–			44,979
Unrealized depreciation on forward foreign currency contracts		–		–		–		–			–
Swap premiums received		–		–		–		–			–
Unrealized depreciation on swap contracts		–		–		–		–			19,676
TOTAL LIABILITIES		457,902		520,525		146,510		65,263,574			51,855,729
NET ASSETS	$	535,245,199	$	84,945,662	$	328,389,632	$	1,202,914,981		$	590,678,547
NET ASSETS REPRESENTED BY:
Trust shares at par value of $0.01 per share	$	514,099	$	53,132	$	277,792	$	1,064,340		$	781,480
Additional paid in capital		484,438,719		63,245,854		318,044,619		1,141,388,256			603,125,548
Accumulated undistributed net investment income (loss)		10,167,140		441,490		8,576,387		27,742,291			26,295,089
Accumulated undistributed net realized gain (loss) on investments, swap contracts, futures contracts, options contracts, securities sold short, foreign exchange transactions and capital gain distributions from underlying funds		27,312,364		5,576,702		981,254		(3,895,424	)		(47,422,347	)
Unrealized appreciation (depreciation) on investments		12,812,877		15,628,484		509,580		36,615,518			7,243,753
Unrealized appreciation (depreciation) on swap contracts, futures contracts and options contracts		–		–		–		–			559,179
Unrealized foreign exchange gain (loss) on other assets and liabilities		–		–		–		–			95,845
Accrued capital gains tax on unrealized appreciation (depreciation)		–		–		–		–			–
NET ASSETS	$	535,245,199	$	84,945,662	$	328,389,632	$	1,202,914,981		$	590,678,547
SHARES OF BENEFICIAL INTEREST:
Authorized (Par value $0.01 per share)		1,000,000,000		1,000,000,000		1,000,000,000		1,000,000,000			1,000,000,000
Outstanding		51,409,927		5,313,241		27,779,203		106,434,039			78,147,991
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	10.41	$	15.99	$	11.82	$	11.30		$	7.56
*   Cost
Investments (unaffiliated)	$	–	$	69,700,817	$	–	$	1,221,886,194		$	580,650,959
Investments (affiliated)	$	522,558,774	$	–	$	327,934,187	$	–		$	–
Foreign cash	$	–	$	–	$	–	$	–		$	–
†   Including securities on loan	$	–	$	386,070	$	–	$	15,435,073		$	47,253,981

See Notes to Financial Statements

115

VALIC Company II

STATEMENTS OF ASSETS AND LIABILITIES — August 31, 2016 — (continued)

	INTERNATIONAL OPPORTUNITIES FUND			LARGE CAP VALUE FUND			MID CAP GROWTH FUND			MID CAP VALUE FUND			MODERATE GROWTH LIFESTYLE FUND
ASSETS:
Investments at value (unaffiliated)*†	$	629,733,731		$	235,297,415		$	121,298,928		$	1,003,893,359		$	–
Investments at value (affiliated)*		–			–			–			–			845,680,731
Repurchase agreements (cost approximates value)		6,614,000			–			1,475,000			7,508,000			–
Total investments		636,347,731			235,297,415			122,773,928			1,011,401,359			845,680,731
Cash		13,391			880			602			160			1,440,326
Foreign cash*		531,872			–			–			30			–
Due from broker		–			–			–			–			–
Receivable for:
Fund shares sold		10,398			143,267			3,578			52,445			612,913
Dividends and interest		1,184,195			460,928			42,090			883,823			–
Investments sold		7,814,065			2,994,930			441,794			6,510,613			–
Payments on swap contracts		–			–			–			–			–
Securities lending income		23,742			1,568			485			26,264			–
Prepaid expenses and other assets		34,688			37,080			27,207			41,500			20,265
Due from investment adviser for expense reimbursements/fee waivers		140,115			14,233			34,660			8,824			33,266
Variation margin on futures contracts		–			–			–			–			–
Unrealized appreciation on forward foreign currency contracts		–			–			–			–			–
Swap premiums paid		–			–			–			–			–
Unrealized appreciation on swap contracts		–			–			–			–			–
TOTAL ASSETS		646,100,197			238,950,301			123,324,344			1,018,925,018			847,787,501
LIABILITIES:
Payable for:
Fund shares reacquired		502,258			77,099			48,521			45,961			17,324
Investments purchased		2,736,069			3,130,618			680,259			8,361,338			594,589
Payments on swap contracts		–			–			–			–			–
Investment advisory and management fees		425,660			94,201			78,589			574,089			71,581
Shareholder services		130,372			47,101			25,799			207,774			–
Administrative service fees		35,201			12,717			6,966			56,099			–
Transfer agent fees and expenses		191			192			223			287			128
Trustees’ fees and expenses		34,812			13,312			9,820			43,993			23,877
Other accrued expenses		141,421			67,364			70,866			179,577			106,098
Variation margin on futures contracts		–			–			–			–			–
Accrued foreign tax on capital gains		27,005			–			–			–			–
Collateral upon return of securities loaned		45,814,865			4,663,513			1,629,758			11,879,715			–
Line of credit		197,196			–			–			–			–
Due to broker		–			–			–			–			–
Unrealized depreciation on forward foreign currency contracts		–			–			–			–			–
Swap premiums received		–			–			–			–			–
Unrealized depreciation on swap contracts		–			–			–			–			–
TOTAL LIABILITIES		50,045,050			8,106,117			2,550,801			21,348,833			813,597
NET ASSETS	$	596,055,147		$	230,844,184		$	120,773,543		$	997,576,185		$	846,973,904
NET ASSETS REPRESENTED BY:
Trust shares at par value of $0.01 per share	$	372,598		$	125,396		$	143,385		$	487,764		$	605,814
Additional paid in capital		605,083,991			228,775,440			110,807,042			824,930,665			780,107,905
Accumulated undistributed net investment income (loss)		4,071,181			3,042,318			(188,572	)		6,491,399			18,954,067
Accumulated undistributed net realized gain (loss) on investments, swap contracts, futures contracts, options contracts, securities sold short, foreign exchange transactions and capital gain distributions from underlying funds		(107,218,673	)		(20,796,403	)		(2,908,909	)		48,340,494			30,217,499
Unrealized appreciation (depreciation) on investments		93,817,819			19,697,433			12,920,597			117,325,913			17,088,619
Unrealized appreciation (depreciation) on swap contracts, futures contracts and options contracts		–			–			–			–			–
Unrealized foreign exchange gain (loss) on other assets and liabilities		(44,764	)		–			–			(50	)		–
Accrued capital gains tax on unrealized appreciation (depreciation)		(27,005	)		–			–			–			–
NET ASSETS	$	596,055,147		$	230,844,184		$	120,773,543		$	997,576,185		$	846,973,904
SHARES OF BENEFICIAL INTEREST:
Authorized (Par value $0.01 per share)		1,000,000,000			1,000,000,000			1,000,000,000			1,000,000,000			1,000,000,000
Outstanding		37,259,833			12,539,620			14,338,479			48,776,394			60,581,392
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	16.00		$	18.41		$	8.42		$	20.45		$	13.98
*   Cost
Investments (unaffiliated)	$	535,915,912		$	215,599,982		$	108,378,331		$	886,567,446		$	–
Investments (affiliated)	$	–		$	–		$	–		$	–		$	828,592,112
Foreign cash	$	533,474		$	–		$	–		$	30		$	–
†   Including securities on loan	$	43,275,581		$	4,580,847		$	1,593,748		$	11,372,487		$	–

See Notes to Financial Statements

116

VALIC Company II

STATEMENTS OF ASSETS AND LIABILITIES — August 31, 2016 — (continued)

	MONEY MARKET II FUND			SMALL CAP GROWTH FUND			SMALL CAP VALUE FUND		SOCIALLY RESPONSIBLE FUND			STRATEGIC BOND FUND
ASSETS:
Investments at value (unaffiliated)*†	$	137,895,700		$	114,785,196		$	509,093,529	$	755,961,956		$	876,914,364
Investments at value (affiliated)*		–			–			–		–			–
Repurchase agreements (cost approximates value)		4,804,000			–			30,404,000		5,764,000			–
Total investments		142,699,700			114,785,196			539,497,529		761,725,956			876,914,364
Cash		578			155			2,039		607			19,864
Foreign cash*		–			–			–		–			29,984
Due from broker		–			–			605,000		–			–
Receivable for:
Fund shares sold		11,195			5,651			6,710		52,721			161,360
Dividends and interest		62,113			36,936			442,977		1,380,920			8,809,512
Investments sold		–			15,394			1,556,477		–			2,851,705
Payments on swap contracts		–			–			–		–			–
Securities lending income		–			16,349			54,794		2,702			13,706
Prepaid expenses and other assets		19,359			10,358			26,834		37,611			28,277
Due from investment adviser for expense reimbursements/fee waivers		42,052			10,210			33,599		38,520			–
Variation margin on futures contracts		–			–			–		–			–
Unrealized appreciation on forward foreign currency contracts		–			–			–		–			92,985
Swap premiums paid		–			–			–		–			–
Unrealized appreciation on swap contracts		–			–			–		–			–
TOTAL ASSETS		142,834,997			114,880,249			542,225,959		763,239,037			888,921,757
LIABILITIES:
Payable for:
Fund shares reacquired		1,391,689			29,156			731,284		293,991			15,850
Investments purchased		–			–			958,594		–			46,843,181
Payments on swap contracts		–			–			–		–			–
Investment advisory and management fees		31,548			72,257			282,940		161,476			351,077
Shareholder services		31,548			21,261			107,194		161,476			173,868
Administrative service fees		8,518			5,740			28,943		43,599			46,944
Transfer agent fees and expenses		96			255			223		127			351
Trustees’ fees and expenses		15,430			6,006			23,794		38,783			31,421
Other accrued expenses		65,445			65,695			127,964		114,661			144,531
Variation margin on futures contracts		–			–			64,612		74,385			–
Accrued foreign tax on capital gains		–			–			–		–			–
Collateral upon return of securities loaned		–			14,796,295			26,117,305		5,529,983			17,336,295
Line of credit		–			–			–		–			–
Due to broker		–			–			–		–			–
Unrealized depreciation on forward foreign currency contracts		–			–			–		–			514,050
Swap premiums received		–			–			–		–			–
Unrealized depreciation on swap contracts		–			–			–		–			–
TOTAL LIABILITIES		1,544,274			14,996,665			28,442,853		6,418,481			65,457,568
NET ASSETS	$	141,290,723		$	99,883,584		$	513,783,106	$	756,820,556		$	823,464,189
NET ASSETS REPRESENTED BY:
Trust shares at par value of $0.01 per share	$	1,412,632		$	70,352		$	378,658	$	393,602	��	$	729,828
Additional paid in capital		139,879,766			85,238,164			442,804,203		551,910,314			807,234,776
Accumulated undistributed net investment income (loss)		(5,309	)		(143,661	)		4,885,446		11,000,425			27,159,348
Accumulated undistributed net realized gain (loss) on investments, swap contracts, futures contracts, options contracts, securities sold short, foreign exchange transactions and capital gain distributions from underlying funds		3,634			4,333,497			6,338,753		50,857,356			(28,555,328	)
Unrealized appreciation (depreciation) on investments		–			10,385,232			59,308,568		141,431,014			17,325,168
Unrealized appreciation (depreciation) on swap contracts, futures contracts and options contracts		–			–			67,478		1,227,845			–
Unrealized foreign exchange gain (loss) on other assets and liabilities		–			–			–		–			(429,603	)
Accrued capital gains tax on unrealized appreciation (depreciation)		–			–			–		–			–
NET ASSETS	$	141,290,723		$	99,883,584		$	513,783,106	$	756,820,556		$	823,464,189
SHARES OF BENEFICIAL INTEREST:
Authorized (Par value $0.01 per share)		1,000,000,000			1,000,000,000			1,000,000,000		1,000,000,000			1,000,000,000
Outstanding		141,263,177			7,035,181			37,865,832		39,360,196			72,982,826
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	1.00		$	14.20		$	13.57	$	19.23		$	11.28
*   Cost
Investments (unaffiliated)	$	137,895,700		$	104,399,964		$	449,784,961	$	614,530,942		$	859,589,196
Investments (affiliated)	$	–		$	–		$	–	$	–		$	–
Foreign cash	$	–		$	–		$	–	$	–		$	30,398
†   Including securities on loan	$	–		$	16,369,235		$	27,746,303	$	9,559,193		$	17,846,983

See Notes to Financial Statements

117

VALIC Company II

STATEMENTS OF OPERATIONS — For the Year Ended August 31, 2016

	AGGRESSIVE GROWTH LIFESTYLE FUND			CAPITAL APPRECIATION FUND			CONSERVATIVE GROWTH LIFESTYLE FUND			CORE BOND FUND			HIGH YIELD BOND FUND
INVESTMENT INCOME:
Dividends (unaffiliated)	$	–		$	1,110,198		$	–		$	94,674		$	136,094
Dividends (affiliated)		9,600,117			–			8,379,259			–			–
Securities lending income		–			27,933			–			179,256			329,683
Interest (unaffiliated)		–			86			–			33,831,028			30,139,191
Total investment income*		9,600,117			1,138,217			8,379,259			34,104,958			30,604,968
EXPENSES:
Investment advisory and management fees		510,533			456,431			320,492			4,998,275			3,069,217
Administrative service fee		–			56,016			–			784,396			337,386
Shareholder services fee		–			207,468			–			2,905,172			1,249,577
Transfer agent fees and expenses		1,398			2,795			1,398			2,795			2,795
Custodian and accounting fees		12,033			19,132			12,032			89,951			45,204
Reports to shareholders		77,583			12,714			49,582			166,778			112,519
Audit and tax fees		34,077			39,508			34,631			50,416			48,608
Legal fees		21,317			10,984			16,383			33,013			21,741
Trustees’ fees and expenses		50,622			8,234			31,814			112,482			47,942
Interest expense		8			–			–			–			–
Other expenses		36,604			13,921			12,924			27,235			17,196
Total expenses before fee waivers, expense reimbursements, fees paid indirectly		744,175			827,203			479,256			9,170,513			4,952,185
Fees waived and expenses reimbursed by investment adviser (Note 3)		(233,640	)		(121,810	)		(158,764	)		(222,585	)		(153,811	)
Fees paid indirectly (Note 7)		–			(7,762	)		–			–			–
Net expenses		510,535			697,631			320,492			8,947,928			4,798,374
Net investment income (loss)		9,089,582			440,586			8,058,767			25,157,030			25,806,594
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**		–			6,271,006			–			757,680			(14,835,108	)
Net realized gain (loss) on investments (affiliated)		3,517,384			–			(2,791,230	)		–			–
Net realized gain (loss) from capital gain distributions from underlying funds (affiliated)		27,315,100			–			5,930,313			–			–
Net realized gain (loss) on futures and swap contracts		–			–			–			–			757,101
Net realized foreign exchange gain (loss) on other assets and liabilities		–			–			–			–			77,870
Net realized gain (loss) on investments and foreign currencies		30,832,484			6,271,006			3,139,083			757,680			(14,000,137	)
Change in unrealized appreciation (depreciation) on investments (unaffiliated)		–			(29,046	)		–			40,587,643			23,004,689
Change in unrealized appreciation (depreciation) on investments (affiliated)		(1,861,057	)		–			8,283,408			–			–
Change in unrealized appreciation (depreciation) on futures and swap contracts		–			–			–			–			637,101
Change in unrealized foreign exchange gain (loss) on other assets and liabilities		–			–			–			–			(43,654	)
Change in accrued capital gains tax on unrealized appreciation (depreciation)		–			–			–			–			–
Net unrealized gain (loss) on investments and foreign currencies		(1,861,057	)		(29,046	)		8,283,408			40,587,643			23,598,136
Net realized and unrealized gain (loss) on investments and foreign currencies		28,971,427			6,241,960			11,422,491			41,345,323			9,597,999
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	38,061,009		$	6,682,546		$	19,481,258		$	66,502,353		$	35,404,593
*   Net of foreign withholding taxes on interest and dividends of	$	–		$	–		$	–		$	339		$	(1,665	)
** Net of foreign withholding taxes on capital gains of	$	–		$	–		$	–		$	–		$	–

See Notes to Financial Statements

118

VALIC Company II

STATEMENTS OF OPERATIONS — For the Year Ended August 31, 2016 — (continued)

	INTERNATIONAL OPPORTUNITIES FUND			LARGE CAP VALUE FUND			MID CAP GROWTH FUND			MID CAP VALUE FUND			MODERATE GROWTH LIFESTYLE FUND
INVESTMENT INCOME:
Dividends (unaffiliated)	$	11,398,959		$	4,714,232		$	761,956		$	15,405,712		$	–
Dividends (affiliated)		–			–			–			–			18,149,081
Securities lending income		342,159			12,532			30,489			140,220			–
Interest (unaffiliated)		10,699			7,431			126			6,764			–
Total investment income*		11,751,817			4,734,195			792,571			15,552,696			18,149,081
EXPENSES:
Investment advisory and management fees		5,016,815			987,023			1,037,186			6,340,987			806,049
Administrative service fee		414,856			133,248			92,782			616,949			–
Shareholder services fee		1,536,505			493,512			343,638			2,284,995			–
Transfer agent fees and expenses		2,095			2,098			2,446			3,146			1,398
Custodian and accounting fees		165,132			12,145			13,997			67,300			12,032
Reports to shareholders		106,445			30,149			22,953			141,917			122,446
Audit and tax fees		59,702			38,184			40,240			39,237			35,650
Legal fees		33,414			13,949			12,086			28,845			26,811
Trustees’ fees and expenses		60,165			19,489			14,585			89,556			79,095
Interest expense		776			45			27			4			–
Other expenses		48,437			18,206			28,404			82,117			20,461
Total expenses before fee waivers, expense reimbursements, fees paid indirectly		7,444,342			1,748,048			1,608,344			9,695,053			1,103,942
Fees waived and expenses reimbursed by investment adviser (Note 3)		(1,298,323	)		(149,070	)		(439,975	)		(98,075	)		(297,894	)
Fees paid indirectly (Note 7)		(10,110	)		(20,584	)		(20,054	)		(4,765	)		–
Net expenses		6,135,909			1,578,394			1,148,315			9,592,213			806,048
Net investment income (loss)		5,615,908			3,155,801			(355,744	)		5,960,483			17,343,033
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**		20,960,535			7,721,758			(1,571,293	)		53,904,741			–
Net realized gain (loss) on investments (affiliated)		–			–			–			–			1,294,225
Net realized gain (loss) from capital gain distributions from underlying funds (affiliated)		–			–			–			–			33,885,915
Net realized gain (loss) on futures and swap contracts		–			–			–			–			–
Net realized foreign exchange gain (loss) on other assets and liabilities		(605,939	)		–			–			7,463			–
Net realized gain (loss) on investments and foreign currencies		20,354,596			7,721,758			(1,571,293	)		53,912,204			35,180,140
Change in unrealized appreciation (depreciation) on investments (unaffiliated)		16,636,846			7,417,784			3,771,207			27,397,319			–
Change in unrealized appreciation (depreciation) on investments (affiliated)		–			–			–			–			6,586,314
Change in unrealized appreciation (depreciation) on futures and swap contracts		–			–			–			–			–
Change in unrealized foreign exchange gain (loss) on other assets and liabilities		20,808			–			–			1,975			–
Change in accrued capital gains tax on unrealized appreciation (depreciation)		19,362			–			–			–			–
Net unrealized gain (loss) on investments and foreign currencies		16,677,016			7,417,784			3,771,207			27,399,294			6,586,314
Net realized and unrealized gain (loss) on investments and foreign currencies		37,031,612			15,139,542			2,199,914			81,311,498			41,766,454
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	42,647,520		$	18,295,343		$	1,844,170		$	87,271,981		$	59,109,487
*   Net of foreign withholding taxes on interest and dividends of	$	613,156		$	7,400		$	546		$	94,017		$	–
** Net of foreign withholding taxes on capital gains of	$	98,404		$	–		$	–		$	–		$	–

See Notes to Financial Statements

119

VALIC Company II

STATEMENTS OF OPERATIONS — For the Year Ended August 31, 2016 — (continued)

	MONEY MARKET II FUND			SMALL CAP GROWTH FUND			SMALL CAP VALUE FUND			SOCIALLY RESPONSIBLE FUND			STRATEGIC BOND FUND
INVESTMENT INCOME:
Dividends (unaffiliated)	$	–		$	423,373		$	8,564,457		$	14,853,794		$	56,509
Dividends (affiliated)		–			–			–			–			–
Securities lending income		–			499,898			745,871			47,587			297,128
Interest (unaffiliated)		551,698			170			1,543			37,776			33,696,772
Total investment income*		551,698			923,441			9,311,871			14,939,157			34,050,409
EXPENSES:
Investment advisory and management fees		416,378			834,366			3,180,890			1,839,990			3,941,248
Administrative service fee		112,422			66,373			325,131			496,798			523,687
Shareholder services fee		416,378			245,825			1,204,189			1,839,990			1,939,582
Transfer agent fees and expenses		1,049			2,795			2,446			1,399			3,847
Custodian and accounting fees		12,493			18,070			45,438			23,358			117,873
Reports to shareholders		49,856			16,100			73,383			115,438			119,645
Audit and tax fees		44,354			38,252			40,148			40,384			50,415
Legal fees		18,002			12,745			21,105			25,396			27,293
Trustees’ fees and expenses		16,940			9,866			46,929			72,644			75,467
Interest expense		–			8			–			–			–
Other expenses		13,968			24,718			67,419			35,433			26,996
Total expenses before fee waivers, expense reimbursements, fees paid indirectly		1,101,840			1,269,118			5,007,078			4,490,830			6,826,053
Fees waived and expenses reimbursed by investment adviser (Note 3)		(566,835	)		(128,486	)		(431,161	)		(369,251	)		–
Fees paid indirectly (Note 7)		–			(10,830	)		(19,173	)		–			–
Net expenses		535,005			1,129,802			4,556,744			4,121,579			6,826,053
Net investment income (loss)		16,693			(206,361	)		4,755,127			10,817,578			27,224,356
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on investments (unaffiliated)**		4,513			4,867,921			9,593,956			50,697,866			(25,609,182	)
Net realized gain (loss) on investments (affiliated)		–			–			–			–			–
Net realized gain (loss) from capital gain distributions from underlying funds (affiliated)		–			–			–			–			–
Net realized gain (loss) on futures and swap contracts		–			–			738,790			(287,516	)		–
Net realized foreign exchange gain (loss) on other assets and liabilities		–			–			(425	)		–			2,979,254
Net realized gain (loss) on investments and foreign currencies		4,513			4,867,921			10,332,321			50,410,350			(22,629,928	)
Change in unrealized appreciation (depreciation) on investments (unaffiliated)		–			(1,266,158	)		37,632,555			20,100,484			49,177,986
Change in unrealized appreciation (depreciation) on investments (affiliated)		–			–			–			–			–
Change in unrealized appreciation (depreciation) on futures and swap contracts		–			–			526,568			3,275,727			–
Change in unrealized foreign exchange gain (loss) on other assets and liabilities		–			–			(23	)		–			280,590
Change in accrued capital gains tax on unrealized appreciation (depreciation)		–			–			–			–			–
Net unrealized gain (loss) on investments and foreign currencies		–			(1,266,158	)		38,159,100			23,376,211			49,458,576
Net realized and unrealized gain (loss) on investments and foreign currencies		4,513			3,601,763			48,491,421			73,786,561			26,828,648
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	21,206		$	3,395,402		$	53,246,548		$	84,604,139		$	54,053,004
*   Net of foreign withholding taxes on interest and dividends of	$	–		$	–		$	14,312		$	(959	)	$	(4,559	)
** Net of foreign withholding taxes on capital gains of	$	–		$	–		$	–		$	–		$	–

See Notes to Financial Statements

120

VALIC Company II

STATEMENTS OF CHANGES IN NET ASSETS

	AGGRESSIVE GROWTH LIFESTYLE FUND						CAPITAL APPRECIATION FUND						CONSERVATIVE GROWTH LIFESTYLE FUND
	For the Year Ended August 31, 2016			For the Year Ended August 31, 2015			For the Year Ended August 31, 2016			For the Year Ended August 31, 2015			For the Year Ended August 31, 2016			For the Year Ended August 31, 2015
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	9,089,582		$	8,991,839		$	440,586		$	315,489		$	8,058,767		$	8,102,860
Net realized gain (loss) on investments and foreign currencies		30,832,484			39,851,778			6,271,006			7,776,997			3,139,083			13,637,210
Net unrealized gain (loss) on investments and foreign currencies		(1,861,057	)		(65,046,407	)		(29,046	)		(5,274,921	)		8,283,408			(30,536,532	)
Net increase (decrease) in net assets resulting from operations		38,061,009			(16,202,790	)		6,682,546			2,817,565			19,481,258			(8,796,462	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(10,738,936	)		(8,425,229	)		(312,016	)		(272,960	)		(8,954,028	)		(7,273,159	)
Net realized gain on securities		(36,862,555	)		(37,983,763	)		(7,803,191	)		–			(13,000,997	)		(14,630,677	)
Total distributions to shareholders		(47,601,491	)		(46,408,992	)		(8,115,207	)		(272,960	)		(21,955,025	)		(21,903,836	)
Net increase (decrease) in net assets resulting from capital share transactions (Note 6)		35,895,629			59,388,848			4,417,592			(7,797,869	)		5,066,395			33,733,531
TOTAL INCREASE (DECREASE) IN NET ASSETS		26,355,147			(3,222,934	)		2,984,931			(5,253,264	)		2,592,628			3,033,233
NET ASSETS:
Beginning of period		508,890,052			512,112,986			81,960,731			87,213,995			325,797,004			322,763,771
End of period†	$	535,245,199		$	508,890,052		$	84,945,662		$	81,960,731		$	328,389,632		$	325,797,004
†  Includes accumulated undistributed net investment income (loss) of	$	10,167,140		$	10,732,462		$	441,490		$	312,853		$	8,576,387		$	8,949,690

See Notes to Financial Statements

121

VALIC Company II

STATEMENTS OF CHANGES IN NET ASSETS — (continued)

	CORE BOND FUND						HIGH YIELD BOND FUND						INTERNATIONAL OPPORTUNITIES FUND						LARGE CAP VALUE FUND
	For the Year Ended August 31, 2016			For the Year Ended August 31, 2015			For the Year Ended August 31, 2016			For the Year Ended August 31, 2015			For the Year Ended August 31, 2016			For the Year Ended August 31, 2015			For the Year Ended August 31, 2016			For the Year Ended August 31, 2015
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	25,157,030		$	21,279,765		$	25,806,594		$	21,725,130		$	5,615,908		$	6,070,838		$	3,155,801		$	2,361,026
Net realized gain (loss) on investments and foreign currencies		757,680			4,636,578			(14,000,137	)		(4,935,620	)		20,354,596			(654,305	)		7,721,758			31,300,480
Net unrealized gain (loss) on investments and foreign currencies		40,587,643			(20,905,735	)		23,598,136			(26,110,295	)		16,677,016			(12,771,756	)		7,417,784			(36,780,637	)
Net increase (decrease) in net assets resulting from operations		66,502,353			5,010,608			35,404,593			(9,320,785	)		42,647,520			(7,355,223	)		18,295,343			(3,119,131	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(23,425,991	)		(21,848,211	)		(23,145,260	)		(21,285,525	)		(6,570,282	)		(7,671,663	)		(2,372,082	)		(2,722,460	)
Net realized gain on securities		(3,247,585	)		–			–			–			–			–			–			–
Total distributions to shareholders		(26,673,576	)		(21,848,211	)		(23,145,260	)		(21,285,525	)		(6,570,282	)		(7,671,663	)		(2,372,082	)		(2,722,460	)
Net increase (decrease) in net assets resulting from capital share transactions (Note 6)		97,283,313			135,941,613			109,564,711			79,002,086			(36,323,383	)		24,697,553			21,318,961			(22,009,185	)
TOTAL INCREASE (DECREASE) IN NET ASSETS		137,112,090			119,104,010			121,824,044			48,395,776			(246,145	)		9,670,667			37,242,222			(27,850,776	)
NET ASSETS:
Beginning of period		1,065,802,891			946,698,881			468,854,503			420,458,727			596,301,292			586,630,625			193,601,962			221,452,738
End of period†	$	1,202,914,981		$	1,065,802,891		$	590,678,547		$	468,854,503		$	596,055,147		$	596,301,292		$	230,844,184		$	193,601,962
†  Includes accumulated undistributed net investment income (loss) of	$	27,742,291		$	23,521,691		$	26,295,089		$	22,676,199		$	4,071,181		$	3,066,471		$	3,042,318		$	2,423,104

See Notes to Financial Statements

122

VALIC Company II

STATEMENTS OF CHANGES IN NET ASSETS — (continued)

	MID CAP GROWTH FUND						MID CAP VALUE FUND						MODERATE GROWTH LIFESTYLE FUND						MONEY MARKET II FUND
	For the Year Ended August 31, 2016			For the Year Ended August 31, 2015			For the Year Ended August 31, 2016			For the Year Ended August 31, 2015			For the Year Ended August 31, 2016			For the Year Ended August 31, 2015			For the Year Ended August 31, 2016			For the Year Ended August 31, 2015
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)	$	(355,744	)	$	(387,426	)	$	5,960,483		$	2,656,597		$	17,343,033		$	15,735,576		$	16,693		$	16,299
Net realized gain (loss) on investments and foreign currencies		(1,571,293	)		8,030,479			53,912,204			127,951,234			35,180,140			46,804,044			4,513			277,264
Net unrealized gain (loss) on investments and foreign currencies		3,771,207			(5,236,025	)		27,399,294			(166,476,630	)		6,586,314			(84,010,113	)		–			–
Net increase (decrease) in net assets resulting from operations		1,844,170			2,407,028			87,271,981			(35,868,799	)		59,109,487			(21,470,493	)		21,206			293,563
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		–			–			(2,541,034	)		(1,930,590	)		(18,174,605	)		(14,788,242	)		(16,693	)		(16,299	)
Net realized gain on securities		(9,306,137	)		(23,091,400	)		(130,705,432	)		(92,970,632	)		(44,418,799	)		(46,494,498	)		–			–
Total distributions to shareholders		(9,306,137	)		(23,091,400	)		(133,246,466	)		(94,901,222	)		(62,593,404	)		(61,282,740	)		(16,693	)		(16,299	)
Net increase (decrease) in net assets resulting from capital share transactions (Note 6)		(26,055,482	)		11,702,600			116,970,362			87,759,775			52,013,742			82,676,287			(18,619,160	)		(10,947,206	)
TOTAL INCREASE (DECREASE) IN NET ASSETS		(33,517,449	)		(8,981,772	)		70,995,877			(43,010,246	)		48,529,825			(76,946	)		(18,614,647	)		(10,669,942	)
NET ASSETS:
Beginning of period		154,290,992			163,272,764			926,580,308			969,590,554			798,444,079			798,521,025			159,905,370			170,575,312
End of period†	$	120,773,543		$	154,290,992		$	997,576,185		$	926,580,308		$	846,973,904		$	798,444,079		$	141,290,723		$	159,905,370
†  Includes accumulated undistributed net investment income (loss) of	$	(188,572	)	$	(441,272	)	$	6,491,399		$	2,691,890		$	18,954,067		$	18,164,593		$	(5,309	)	$	(5,309	)

See Notes to Financial Statements

123

VALIC Company II

STATEMENTS OF CHANGES IN NET ASSETS — (continued)

	SMALL CAP GROWTH FUND						SMALL CAP VALUE FUND						SOCIALLY RESPONSIBLE FUND						STRATEGIC BOND FUND
	For the Year Ended August 31, 2016			For the Year Ended August 31, 2015			For the Year Ended August 31, 2016			For the Year Ended August 31, 2015			For the Year Ended August 31, 2016			For the Year Ended August 31, 2015			For the Year Ended August 31, 2016			For the Year Ended August 31, 2015
INCREASE (DECREASE) IN NET ASSETS OPERATIONS:
Net investment income (loss)	$	(206,361	)	$	(282,616	)	$	4,755,127		$	5,596,071		$	10,817,578		$	9,876,470		$	27,224,356		$	29,043,614
Net realized gain (loss) on investments and foreign currencies		4,867,921			11,007,459			10,332,321			57,359,355			50,410,350			73,027,864			(22,629,928	)		(1,544,065	)
Net unrealized gain (loss) on investments and foreign currencies		(1,266,158	)		(4,864,720	)		38,159,100			(79,140,679	)		23,376,211			(77,297,779	)		49,458,576			(45,501,216	)
Net increase (decrease) in net assets resulting from operations		3,395,402			5,860,123			53,246,548			(16,185,253	)		84,604,139			5,606,555			54,053,004			(18,001,667	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		–			–			(5,703,783	)		(3,145,608	)		(10,420,982	)		(8,278,684	)		(30,733,820	)		(28,288,148	)
Net realized gain on securities		(9,907,299	)		(12,307,025	)		(57,354,654	)		(69,462,612	)		(45,692,358	)		–			(2,407,964	)		(7,182,384	)
Total distributions to shareholders		(9,907,299	)		(12,307,025	)		(63,058,437	)		(72,608,220	)		(56,113,340	)		(8,278,684	)		(33,141,784	)		(35,470,532	)
Net increase (decrease) in net assets resulting from capital share transactions (Note 6)		(3,633,641	)		2,568,967			36,438,081			17,780,355			1,869,743			49,897,512			16,918,052			84,015,260
TOTAL INCREASE (DECREASE) IN NET ASSETS		(10,145,538	)		(3,877,935	)		26,626,192			(71,013,118	)		30,360,542			47,225,383			37,829,272			30,543,061
NET ASSETS:
Beginning of period		110,029,122			113,907,057			487,156,914			558,170,032			726,460,014			679,234,631			785,634,917			755,091,856
End of period†	$	99,883,584		$	110,029,122		$	513,783,106		$	487,156,914		$	756,820,556		$	726,460,014		$	823,464,189		$	785,634,917
†  Includes accumulated undistributed net investment income (loss) of	$	(143,661	)	$	(146,258	)	$	4,885,446		$	5,782,520		$	11,000,425		$	9,947,965		$	27,159,348		$	31,439,551

See Notes to Financial Statements

124

VALIC Company II

NOTES TO FINANCIAL STATEMENTS

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 Value Fund
Capital Appreciation Fund	Moderate Growth Lifestyle Fund*
Conservative Growth Lifestyle Fund*	Money Market II Fund
Core Bond Fund	Small Cap Growth Fund
High Yield Bond Fund	Small Cap Value Fund
International Opportunities Fund	Socially Responsible Fund
Large Cap Value Fund	Strategic Bond Fund
Mid Cap Growth 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 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 August 31, 2016, is reported on a schedule following the 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 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.

125

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

As of the close of regular trading on the New York Stock Exchange (“NYSE”), securities traded primarily on security exchanges outside the United States are valued at the last sale price on such exchanges on the day of valuation, or if there is no sale on the day of valuation, at the last-reported bid price. If a security’s price is available from more than one exchange, the Funds use the exchange that is the primary market for the security. Such securities are generally categorized as Level 1. However, depending on the foreign market, closing prices may be up to 15 hours old when they are used to price a Fund’s shares, and a Fund may determine that certain closing prices do not reflect the fair value of the security. This determination will be based on the review of a number of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. If a Fund determines that closing prices do not reflect the fair value of the securities, the Fund will adjust the previous closing prices in accordance with pricing procedures approved by the Board to reflect what it believes to be the fair value of the securities as of the close of regular trading on the NYSE. The Funds may also fair value securities in other situations, for example, when a particular foreign market is closed but a Fund is open. For foreign equity securities and foreign equity futures contracts, the Funds use an outside pricing service to provide it with closing market prices and information used for adjusting those prices, and when so adjusted, such securities and futures are generally categorized as Level 2.

Bonds, debentures and other debt securities are valued at evaluated bid prices obtained for the day of valuation from a Board-approved pricing service, and are generally categorized as Level 2. The pricing service may use valuation models or matrix pricing which considers information with respect to comparable bond and note transactions, quotations from bond dealers, or by reference to other securities that are considered comparable in such characteristics as rating, interest rate, and maturity date, option adjusted spread models, prepayments projections, interest rate spreads, and yield curves to determine current value. If a price is unavailable from a Board-approved pricing service, the securities may be priced at the mean of two independent quotes obtained from brokers.

Senior floating rate loans (“Loans”) are valued at the average of available bids in the market for such Loans, as provided by a Board-approved loan pricing service, and are generally categorized as Level 2.

Investments in registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. Registered investment companies are generally categorized as Level 1.

Futures contracts traded on national securities exchanges are valued at the quoted daily settlement price established by the exchange on which they trade reported by a Board-approved pricing service, and are generally categorized as Level 1. Swap contracts traded on national securities exchanges are valued at the closing price of the exchange on which they are traded or if a closing price of the exchange is not available, the swap will be valued using a mid valuation provided by a Board-approved pricing service, and are generally categorized as Level 2. Swap contracts traded in the over-the-counter (“OTC”) market are valued at a mid valuation provided by a Board-approved pricing service, and are generally categorized as Level 2. Forward foreign currency contracts (“forward contracts”) are valued at the 4:00 p.m. Eastern Time forward rate and are generally categorized as Level 2.

For the 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 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 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 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

126

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

appreciation or depreciation reported on the Statements of Assets and Liabilities. Illiquidity risk arises because the secondary market for forwards may have less liquidity relative to markets for other securities. Currency transactions are also subject to risks different from those of other portfolio transactions. Because currency control is of great importance to the issuing governments and influences economic planning and policy, purchases and sales of currency and related instruments can be adversely affected by government exchange controls, limitations or restrictions on repatriation of currency, and manipulations or exchange restrictions imposed by governments.

Forward foreign currency contracts outstanding at the end of the period, if any, are reported on a schedule following the Fund’s Portfolio of Investments.

Futures: During the period, the Small Cap Value Fund and Socially Responsible Fund used equity futures contracts to equitize cash, providing exposure to equity markets.

A futures contract is an agreement between two parties to buy and sell a financial instrument at a set price on a future date. Upon entering into a futures transaction, a Fund will be required to segregate an initial margin payment of cash or other liquid securities with the futures commission merchant (the “broker”). Subsequent payments are made or received by the Fund as a result of changes in the value of the contract and/or changes in the value of the initial margin requirement. Such receipts or payments are recorded in the Statements of Assets and Liabilities as variation margin for changes in the value of the contracts and as due to/from broker for the changes in the value of the initial margin requirement. When a contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

The primary risk to the Funds of entering into futures contracts is market risk. Market risk is the risk that there will be an unfavorable change in the interest rate, value or currency rate of the underlying security(ies). Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities. There may also be trading restrictions or limitations imposed by an exchange, and government regulations may restrict trading in futures contracts. While the Funds will generally only purchase exchange-traded futures, due to market conditions, there may not always be a liquid secondary market for a futures contract and, as a result, a Fund may be unable to close out its futures contracts at a time which is advantageous. In addition, if a Fund has insufficient cash to meet margin requirements, the Fund may need to sell other investments, including at disadvantageous times. There is generally minimal counterparty risk to the Funds since the futures contracts are generally exchange-traded.

Futures contracts outstanding at the end of the period, if any, are reported on a schedule following the Fund’s Portfolio of Investments.

Swap Contracts: Certain Funds may enter into credit default, interest rate, equity and/or total return swap contracts. Swap contracts are privately negotiated in the OTC market and may be entered into as a bilateral contract or a centrally cleared contract (“centrally cleared swaps”). In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and a Fund faces the CCP through a broker. Upon entering into a centrally cleared swap, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the Portfolio of Investments and cash deposited is recorded on the Statements of Assets and Liabilities as due from broker. Unlike a bilateral swap contract, for centrally cleared swaps, the Funds have no credit exposure to the counterparty as the CCP stands between the Funds and the counterparty. Swaps are marked-to-market daily and the changes in value are recorded as an unrealized gain (loss). The daily change in valuation of swap contracts, if any, is recorded as unrealized appreciation (depreciation) on swap contracts. When the swap is terminated, the Funds will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Funds’ basis in the contract, if any. Generally, the basis of the contracts is the premium received or paid. The Funds amortize upfront payments and receipts on the swap contracts on a daily basis. Net periodic payments made or received by the Funds are included as part of realized gain (loss).

Credit Default Swap Agreements: During the period, the High Yield Bond Fund used credit default swaps to manage credit risk (i.e., hedging).

Credit default swaps are generally contracts in which one party makes periodic fixed-rate payments or a one time premium payment (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified payment in the event of a default or other credit event for the referenced entity, obligation or index. As a seller of protection on credit default swaps, a Fund will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, a Fund would effectively add leverage to its Fund because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap. If a Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. As a buyer of protection on credit default swaps, a Fund will make periodic payments, similar to an insurance premium and the seller of protection agrees to compensate the Fund for future potential losses as a result of a credit event on the reference bond or other asset. A Fund effectively transfers the credit event risk of the reference bond or asset from it to the seller of protection. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.

Credit default swaps on corporate issues or sovereign issues of an emerging market country are contracts in which the buyer of protection makes periodic fixed payments or a one time premium payment to the seller of protection in exchange for the right to receive a specified payment in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event). A Fund may use credit default swaps on corporate issues or sovereign issues of an emerging market country to provide a measure of protection against defaults of the issuers (i.e., to reduce credit risk where a Fund owns or has exposure to the referenced obligation) or to take a speculative credit position with an active long or short position with respect to the likelihood of a particular issuer’s default.

127

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

Credit default swaps on asset-backed securities are contracts in which the buyer of protection makes periodic fixed-rate payments or a one time premium payment to the seller of protection in exchange for the right to receive a specified payment in the event of a default or other credit event. Unlike credit default swaps on corporate issues or sovereign issues of an emerging market country, deliverable obligations in most instances would be limited to the specific referenced obligation as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap agreement will be adjusted by corresponding amounts. A Fund may use credit default swaps on asset-backed securities to provide a measure of protection against defaults of the referenced obligation or to take a speculative credit position with an active long or short position with respect to the likelihood of a particular referenced obligation’s default.

Credit default swaps on credit indices are generally contracts in which the buyer of protection makes periodic fixed-rate payments or a one time premium payment to the seller of protection in exchange for the right to receive a specified payment in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a list of a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. A Fund may use credit default swaps on credit indices to hedge a Fund of credit default swaps or bonds which is less expensive than it would be to enter into many credit default swaps to achieve a similar effect. Credit-default swaps on indices are used for protecting investors owning bonds against default, and also to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swaps on corporate issues or sovereign issues of an emerging market country as of period end are disclosed in the footnotes to the Portfolio of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default swaps on asset-based securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swaps outstanding at the end of the period, for which a Fund is the seller of protection, if any, are disclosed on a schedule following the Fund’s Portfolio of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swaps entered into by a Fund for the same referenced entity or entities.

Credit default swap contracts outstanding at the end of the period, if any, are reported on a schedule following the Fund’s Portfolio of Investments.

Risks of Entering into Swap Agreements: Risks to a Fund of entering into credit default swaps, equity swaps and interest rate swaps, include credit risk, market risk, counterparty risk, liquidity risk and documentation risk. By entering into swap agreements, the Funds may be exposed to risk of potential loss due to unfavorable changes in interest rates, the price of the underlying security or index, or the underlying referenced asset’s perceived or actual credit, that the counterparty may default on its obligation to perform or the possibility that there is no liquid market for these agreements. There is also the risk that the parties may disagree as to the meaning of contractual terms in the swap agreement. In addition, to the extent that a subadviser does not accurately analyze and predict the underlying economic factors influencing the value of the swap, the Fund may suffer a loss.

Master Agreements: Certain Funds that hold derivative instruments and other financial instruments may be a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements or similar agreements (“Master Agreements”) with certain counterparties that govern such instruments. Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. Collateral can be in the form of cash or securities as agreed to by a Fund and applicable counterparty. Collateral requirements are generally determined based on a Fund’s net position with each counterparty. Master Agreements may also include certain provisions that require a Fund to post additional collateral upon the occurrence of certain events, such as when a Fund’s net assets fall below a specified level. In addition, Master Agreements typically specify certain standard termination events, such as failure of a party to pay or deliver, credit support defaults and other events of default. Termination events applicable to a Fund may also occur upon a decline in a Fund’s net assets below a specified level over a certain period of time. Additional termination events applicable to counterparties may occur upon a decline in a counterparty’s long-term and short-term credit ratings below a specified level, or upon a decline in the ratings of a counterparty’s credit support provider. Upon the occurrence of a termination event, the other party may elect to terminate early and cause settlement of all instruments outstanding pursuant to a particular Master Agreement, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of a Fund’s counterparties to elect early termination could cause a Fund to accelerate the payment of liabilities, which settlement amounts could be in excess of the amount of assets that are already posted as collateral. Typically, the Master Agreement will permit a single net payment in the event of default. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. As a result, the early termination with respect to derivative instruments subject to Master Agreements that are in a net liability position could be material to a Fund’s financial statements. See additional information on specific types of derivative instruments and other financial instruments as disclosed in the Notes to Financial Statements. The Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

128

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

The following tables represent the value of derivatives held as of August 31, 2016, 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 year ended August 31, 2016. For a detailed presentation of derivatives held as of August 31, 2016, please refer to the schedule following the Portfolio of Investments.

	Asset Derivatives
	Equity Contracts		Credit Contracts		Foreign Exchange Contracts		Total
Fund	Futures Contracts(1)(6)		Swap Contracts(2)		Foreign Forward Exchange Contracts(3)
High Yield Bond	$	—	$	578,855	$	96,072	$	674,927
Small Cap Value		—		—		—		—
Socially Responsible		—		—		—		—
Strategic Bond		—		—		92,985		92,985
	Liability Derivatives
	Equity Contracts		Credit Contracts		Foreign Exchange Contracts		Total
Fund	Futures Contracts(1)(6)		Swap Contracts(4)		Foreign Forward Exchange Contracts(5)
High Yield Bond	$	—	$	19,676	$	—	$	19,676
Small Cap Value		64,612		—		—		64,612
Socially Responsible		74,385		—		—		74,385
Strategic Bond		—		—		514,050		514,050

Statement of Assets and Liabilities Location:

(1) Variation Margin on futures contracts

(2) Unrealized appreciation on swap contracts

(3) Unrealized appreciation on forward foreign currency contracts

(4) Unrealized depreciation on swap contracts

(5) Unrealized depreciation on forward foreign currency contracts

(6) The variation margin on futures contracts is included in the cumulative appreciation (depreciation) as reported on each Fund's Portfolio of Investments in the following amounts:

Fund	Cumulative Appreciation (Depreciation)
Small Cap Value	$	67,478
Socially Responsible		1,227,845

129

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

	Realized Gain (Loss) on Derivatives Recognized in Statement of Operations
	Equity Contracts			Credit Contracts		Foreign Exchange Contracts			Total
Fund	Futures Contracts(1)			Swap Contracts(1)		Foreign Forward Exchange Contracts(2)
High Yield Bond	$	—		$	757,101	$	(79,148	)	$	677,953
Small Cap Value		738,790			—		—			738,790
Socially Responsible		(287,516	)		—		—			(287,516	)
Strategic Bond		—			—		3,717,155			3,717,155

	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Statement of Operations
	Equity Contracts		Credit Contracts		Foreign Exchange Contracts			Total
Fund	Futures Contracts(3)		Swap Contracts(3)		Foreign Forward Exchange Contracts(4)
High Yield Bond	$	—	$	637,101	$	(43,015	)	$	594,086
Small Cap Value		526,568		—		—			526,568
Socially Responsible		3,275,727		—		—			3,275,727
Strategic Bond		—		—		(409,936	)		(409,936	)

Statement of Operations Location:

(1) Net realized gain (loss) on futures and swap contracts

(2) Net realized foreign exchange gain (loss) on other assets and liabilities

(3) Change in unrealized appreciation (depreciation) on futures and swap contracts

(4) Change in unrealized foreign exchange gain (loss) on other assets and liabilities

	Average Amount Outstanding During the Year
Fund	Futures Contracts(1)		Credit Swap Contracts(2)		Foreign Forward Exchange Contracts(2)
High Yield Bond	$	—	$	19,112,975	$	7,363,235
Small Cap Value		8,157,926		—		—
Socially Responsible		29,941,471		—		—
Strategic Bond		—		—		120,001,697

(1) Amounts represent values in US dollars.

(2) Amounts represent notional amounts in US dollars.

130

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (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 August 31, 2016. The repurchase agreements held by the Funds and securities on loan as of August 31, 2016, 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)
Citibank N.A.	$	96,072	$	—	$	—	$	96,072	$	—	$	—	$	—	$	—	$	96,072	$	—	$	96,072

(1) Gross amounts of recognized assets and liabilities not offset in the Statements of Assets and Liabilities.

(2) For each respective counterparty, collateral pledged or (received) is limited to an amount not to exceed 100% of the net amount of the derivative asset/liability in the table above.

(3) Net amount represents the net amount due (to)/from counterparty in the event of a default based on the contractual set-off rights under the agreement.

C. Stripped Mortgage-Backed Securities

Stripped Mortgage-Backed Securities (“SMBS”) are multiple-class mortgage-backed securities. SMBS are often structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. SMBS have greater market volatility than other types of U.S. government securities in which a Fund invests. A common type of SMBS has one class receiving some of the interest and all or most of the principal (the “principal only” class) from the mortgage pool, while the other class will receive all or most of the interest (the “interest only” class). The yield to maturity on an interest only class is extremely sensitive not only to changes in prevailing interest rates, but also to the rate of principal payments, including principal prepayments, on the underlying pool of mortgage assets, and a rapid rate of principal payment may have a material adverse effect on a Fund‘s yield.

D. Mortgage-Backed Dollar Rolls

During the year ended August 31, 2016, the Core Bond Fund and the Strategic Bond Fund entered into dollar rolls using “to be announced” (“TBA”) mortgage-backed securities (“TBA Rolls”). TBA Roll transactions involve the sale of mortgage or other asset backed securities with the commitment to purchase substantially similar securities on a specified future date. The Funds’ policy is to record the components of TBA Rolls as purchase/sale transactions. Any difference between the purchase and sale price is recorded as a realized gain or loss on the date the transaction is entered into. The Core Bond and the Strategic Bond Fund had TBA Rolls outstanding at period end, which are included in receivable for investments sold and payable for investments purchased in the Statements of Assets and Liabilities. TBA Roll transactions involve the risk that the market value of the securities held by a Fund may decline below the price of the securities that the Fund has sold but is obligated to repurchase under the agreement. In the event that the buyer of securities in a TBA Roll transaction files bankruptcy or becomes insolvent, a Fund‘s use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund‘s obligation to repurchase the securities. The return earned by a Fund with the proceeds of the TBA Roll transaction may not exceed the transaction costs.

E. When-Issued Securities and Forward Commitments

Certain Funds may purchase or sell when-issued securities, including TBA securities that have been authorized, but not yet issued in the market. In addition, a Fund may purchase or sell securities on a forward commitment basis. A forward commitment involves entering into a contract to purchase or sell securities, typically on an extended settlement basis, for a fixed price at a future date. The Funds may engage in when-issued or forward commitment transactions in order to secure what is considered to be an advantageous price and yield at the time of entering into the obligation. The purchase of securities on a when-issued or forward commitment basis involves a risk of loss if the value of the security to be purchased declines before the settlement date. Conversely, the sale of securities on a when-issued or forward commitment basis involves the risk that the value of the securities sold may increase before the settlement date. For the year ended August 31, 2016, the Core Bond Fund and the Strategic Bond Fund purchased and/or sold when-issued securities.

F. Inflation-Indexed Bonds

Certain Funds may purchase inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is adjusted periodically according to the rate of inflation. Two structures are common. The U.S. Treasury and certain other issuers use a structure that reflects inflation in the principal value of the bond. Other issuers pay out any inflation related accruals as part of a semiannual coupon. The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real interest rates, in turn, are tied to the relationship between nominal interest rates (i.e., stated interest rates) and the rate of inflation. Therefore, if the rate of inflation rises at a faster rate than nominal interest rates, real interest rates (i.e., nominal interest rates minus inflation) might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in nominal interest rates, and short-term increases in inflation may lead to a decline in their value. Coupon payments received from inflation-indexed bonds are recorded in the Statements of Operations as interest income. In addition, any increase or decrease in the principal amount of an inflation-indexed bond will be recorded in the Statements of Operations as an increase or decrease to interest income, even though principal is not paid until maturity.

131

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

G. Repurchase Agreements

The Funds, along with other affiliated registered investment companies, pursuant to procedures adopted by the Board and applicable guidance from the Securities and Exchange Commission (“SEC”), may transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by U.S. Treasury or federal agency obligations.

In a repurchase agreement, the seller of a security agrees to repurchase the security at a mutually agreed-upon time and price, which reflects the effective rate of return for the term of the agreement. For repurchase agreements and joint repurchase agreements, the Series’ custodian takes possession of the collateral pledged for investments in such repurchase agreements (“repo” or collectively “repos”). The underlying collateral is valued daily on a mark to market basis, plus accrued interest to ensure that the value, at the time the agreement is entered into, is equal to at least 102% of the repurchase price, including accrued interest. In the event of default of the obligation to repurchase, a Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by a Fund may be delayed or limited.

As of August 31, 2016, the following Funds held an undivided interest in the joint repurchase agreement with State Street Bank and Trust Co.:

Fund	Percentage Ownership			Principal Amount
Money Market II		2.57	%	$	4,804,000
Socially Responsible		3.08			5,764,000

As of such date, the repurchase agreement in that joint account and the collateral thereof were as follows:

State Street Bank and Trust Co., dated August 31, 2016, bearing interest at a rate of 0.01% per annum, with a principal amount of $186,961,000, a repurchase price of $186,961,052 and a maturity date of September 1, 2016. The repurchase agreement is collateralized by the following:

Type of Collateral	Interest Rate			Maturity Date		Principal Amount		Value
U.S. Treasury Bonds		7.88	%		02/15/2021	$	25,000,000		32,390,275
U.S. Treasury Bonds		8.75			05/15/2020		25,000,000		32,638,075
U.S. Treasury Notes		2.25			07/31/2021		104,560,000		109,953,518
U.S. Treasury Notes		3.50			05/15/2020		14,310,000		15,722,526

H. Investment Securities Loaned

To realize additional income, a Fund, except for Aggressive Growth Lifestyle Fund, Conservative Growth Lifestyle Fund, Moderate Growth Lifestyle Fund, and the Money Market II Fund, may lend portfolio securities with a value of up to 30% of its total assets. Securities lending arrangements are generally governed by master securities lending authorization agreements which typically provide the securities lending agent with the right to make loans of a Fund’s available securities to an approved list of borrowers. These master securities lending agreements are considered to be Master Agreements as discussed in the Notes to the Financial Statements. Loans made pursuant to these agreements will be continuously secured by collateral in an amount at least equal to the market value of the securities loaned. Such collateral will be cash, U.S. government securities, or other collateral as deemed appropriate. A Fund may use the cash collateral received to invest in short-term investments. The description of the short-term investments made with cash collateral from securities lending is included in the applicable Fund’s Portfolio of Investments. Loans by a Fund will only be made to broker-dealers deemed by the securities lending agent to be creditworthy and will not be made unless, in the judgment of VALIC, the consideration to be earned from such loans would justify the risk. It is the Series’ policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day. Therefore, the value of the collateral may be temporarily more or less than the value of the securities on loan. Each Fund receives income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower, less expenses associated with the loan. In the event of a borrower default, including if the borrower fails to maintain the requisite amount of collateral, the securities lending agent will terminate all outstanding loans to that particular borrower and the lending Fund is permitted to use the collateral to replace the securities while holding the borrower liable for any excess of replacement cost over collateral. The securities lending agent is also required to indemnify a Fund against certain losses resulting from a borrower default. Although risk is mitigated by the collateral and indemnification, the risks in lending fund securities, as with other extensions of secured credit, include possible delays in receiving additional collateral or in the recovery of the securities or possible loss of rights in the collateral should the borrower fail financially as well as risk of loss in the value of collateral or the value of the investments made with the collateral. Income and fees are recorded in the Statements of Operations as securities lending income. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

I. Securities Transactions, Investment Income, Expenses, Dividends and Distributions to Shareholders

Security transactions are recorded on a trade date basis. Realized gains and losses on the sale of investments are calculated on the identified cost basis. For financial statement purposes, the Funds amortize all premiums and accrete all discounts on fixed income securities.

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.

132

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

Funds which earn foreign income and capital gains may be subject to foreign withholding taxes and capital gains taxes at various rates. Under applicable foreign law, a withholding of tax may be imposed on interest, dividends, and capital gains from the sale of foreign securities at various rates. India, Thailand, and certain other countries’ tax regulations require that taxes be paid on capital gains realized by a Fund.

In consideration of recent decisions rendered by the European courts, certain Portfolios filed reclaims to recover taxes withheld on dividends earned from certain European Union countries during calendar years 2007 through 2011. These filing are subject to various administrative and judicial proceedings within these countries. During the fiscal year, the International Opportunities Fund successfully recovered taxes withheld by Sweden for the aforementioned calendar years in the amount of $224,953. Such amounts are disclosed in the Statement of Operations as Dividends, Interest income and Net realized foreign exchange gain (loss) on other assets and liabilities of $277,505, $4,018 and $(56,570), respectively. No other amounts for additional tax reclaims are disclosed in the financial statements due to the uncertainty as to the ultimate resolution of the proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment.

Distributions received from Real Estate Investment Trusts (“REIT”) investments are recharacterized based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available on a timely basis from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The amount recharacterized as ordinary income is recorded as dividend income and the amount recharacterized as capital gain is recorded as realized gain in the Statement of Operations. The amount recharacterized as return of capital is recorded as a reduction to the cost of investments in the Statement of Assets and Liabilities. These recharacterizations are reflected in the accompanying financial statements.

Expenses common to all Funds are allocated among the Funds based upon relative net assets or other appropriate allocation methods. In all other respects, expenses are charged to each Fund as incurred on a specific identification basis. For the Lifestyle Funds, the expenses included in the accompanying financial statements reflect the expenses of the Lifestyle Funds and do not include any expenses associated with the Underlying Funds.

Dividends from net investment income, if any, are normally paid annually, except for the Money Market II Fund, which declares daily and pays monthly. Distributions from net realized capital gains, if any, are normally declared and paid annually. The Funds record dividends and distributions to their shareholders on the ex-dividend date.

The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts at fiscal year end based on their federal tax-basis treatment; temporary differences do not require reclassification. Net assets are not affected by these reclassifications.

Each Fund is considered a separate entity for tax purposes and intends to comply with the requirements of the Internal Revenue Code, as amended, applicable to regulated investment companies and distribute all of its taxable income, including any net capital gains on investments, to its shareholders. Each Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. Therefore, no federal income tax or excise tax provision is required.

The Funds recognize the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained, assuming examination by tax authorities. Management has analyzed each Fund’s tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2013 — 2015 or expected to be taken in each Fund’s 2016 tax return. The Funds are not aware of any tax provisions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. The Funds file U.S. federal and certain state income tax returns. With few exceptions, the Funds are no longer subject to U.S. federal and state tax examinations by tax authorities for tax returns ending before 2013.

J. Foreign Currency Translation

The books and records of the Funds are maintained in U.S. dollars. Assets and liabilities denominated in foreign currencies and commitments under forward foreign currency contracts are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation.

The Funds do not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of securities held at the end of the period. Similarly, the Funds do not isolate the effect of changes in foreign exchange rates from the changes in the market prices of portfolio securities sold during the period.

Realized foreign exchange gains and losses on other assets and liabilities and change in unrealized foreign exchange gains and losses on other assets and liabilities located in the Statements of Operations include realized foreign exchange gains and losses from currency gains or losses between the trade and the settlement dates of securities transactions, the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid and changes in the unrealized foreign exchange gains and losses relating to the other assets and liabilities arising as a result of changes in the exchange rates and realized gains and losses on forward foreign currency contracts.

Note 3 — Advisory Fees and Other Transactions with Affiliates

VALIC serves as investment adviser to VC II. Certain officers and trustees of VC II are officers and directors of VALIC or affiliates of VALIC. VALIC receives from VC II a monthly fee based on each Fund’s average daily net asset value at the following annual rates:

Aggressive Growth Lifestyle Fund	0.10%
Capital Appreciation Fund	0.55% on first $1 billion
	0.525% on assets over $1 billion
Conservative Growth Lifestyle Fund	0.10%
Core Bond Fund	0.50% on the first $200 million
	0.45% on the next $300 million
	0.40% on assets over $500 million

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NOTES TO FINANCIAL STATEMENTS — (continued)

High Yield Bond Fund	0.65% on the first $150 million
	0.60% on the next $350 million
	0.55% on assets over $500 million
International Opportunities Fund	0.90% on the first $100 million
	0.80% on the next $650 million
	0.75% on assets over $750 million
Large Cap Value Fund	0.50% on the first $500 million
	0.475% on assets over $500 million
Mid Cap Growth Fund	0.80% on the first $50 million
	0.75% on the next $50 million
	0.70% on the next $150 million
	0.65% on the next $250 million
	0.60% on assets over $500 million
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%
Money Market II Fund	0.25%
Small Cap Growth Fund	0.85% on the first $100 million
	0.80% on assets over $100 million
Small Cap Value Fund	0.75% on the first $50 million
	0.65% on assets over $50 million
Socially Responsible Fund	0.25% on the first $1 billion
	0.24% on assets over $1 billion
Strategic Bond Fund	0.60% on the first $200 million
	0.50% on the next $300 million
	0.45% on assets over $500 million

VALIC has entered into subadvisory agreements with the following:

Delaware Investments Fund Advisers (“Delaware Investments”)⁽¹⁾—subadviser for a portion of the International Opportunities Fund.

J.P. Morgan Investment Management, Inc. (“JPMIM”)—subadviser for the Small Cap Growth Fund and a portion of 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.

Robeco Investment Management, Inc. d/b/a Boston Partners (“Robeco”)—subadviser for a portion of the Mid Cap Value Fund.

SunAmerica Asset Management, LLC (“SunAmerica”)—subadviser for the Money Market II Fund and the Socially Responsible Fund

The Boston Company Asset Management, LLC (“The Boston Co.”)—subadviser for the Capital Appreciation Fund and a portion of the Large Cap Value Fund.

Wellington Management Company LLP—subadviser for the High Yield Bond Fund and a portion of the Mid Cap Value Fund.

Wells Capital Management, Inc. (“Wells Capital”)—subadviser for the Mid Cap Growth Fund and a portion of the Small Cap Value Fund.⁽²⁾

(1) Effective March 1, 2016, Delaware Investments replaced UBS Global Asset Management (Americas), Inc. as the subadviser for a portion of the International Opportunities Fund.

(2) On July 1, 2016, Metropolitan West Capital Management, LLC merged with and into Wells Capital.

The subadvisers are compensated for their services by VALIC.

VALIC has contractually agreed to waive fees and/or reimburse expenses, if necessary, to keep annual operating expenses at or below the following percentages of each Fund’s average daily net assets through December 31, 2017. For the purposes of waived fee and/or reimbursed expense calculations, annual fund operating expenses shall not include extraordinary expenses (i.e., expenses that are unusual in nature and/or infrequent in occurrence, such as litigation), or acquired fund fees and expenses, brokerage commissions and other transactional expenses relating to the purchase and sale of portfolio securities, interest, taxes and governmental fees, and other expenses not incurred in the ordinary course of the Fund’s business. The contractual expense waivers and fee reimbursements will continue until December 31, 2017, subject to termination by the Board, including a majority of the Trustees who are not deemed to be interested persons of the Fund or VALIC as defined by Section 2(a)(19) of the 1940 Act (the “Disinterested Trustees”).

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NOTES TO FINANCIAL STATEMENTS — (continued)

Fund	Expense Limitation
Aggressive Growth Lifestyle		0.10	%
Capital Appreciation		0.85	%
Conservative Growth Lifestyle		0.10	%
Core Bond		0.77	%
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	%
Money Market II		0.55	%
Small Cap Growth		1.16	%
Small Cap Value		0.95	%
Socially Responsible		0.56	%
Strategic Bond		0.89	%

For the year ended August 31, 2016, pursuant to the contractual expense limitations in the above table, VALIC waived fees and/or reimbursed expenses as follows:

Fund	Amount
Aggressive Growth Lifestyle	$	233,640
Capital Appreciation		121,810
Conservative Growth Lifestyle		158,764
Core Bond		222,585
High Yield Bond		153,811
International Opportunities		1,298,323
Large Cap Value		149,070
Mid Cap Growth		439,975
Mid Cap Value		98,075
Moderate Growth Lifestyle		297,894
Money Market II		185,809
Small Cap Growth		128,486
Small Cap Value		431,161
Socially Responsible		369,251

VALIC may also voluntarily waive fees and/or reimburse expenses to avoid a negative yield on the 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 Money Market II Fund will be able to avoid a negative yield. For the year ended August 31, 2016, VALIC voluntarily waived fees and/or reimbursed expenses of $381,026 for the Money Market II Fund.

VC II, on behalf of each Fund, other than the Lifestyle Funds, has entered into an Administrative Services Agreement with SunAmerica (“Administrator”), an affiliate of the Adviser. SunAmerica receives from each Fund in the Series and VCI, other than the Lifestyle Funds, an annual fee of 0.06% based upon each Fund’s average daily net assets, plus the following Accounting Basis Point Fee†: 0.0075% on the first $75 billion; 0.0060% on the next $25 billion; and 0.0050% in excess of $100 billion. Pursuant to the Administrative Services Agreement, SunAmerica provides administrative services to the Funds, regulatory reporting, internal legal and compliance services, fund accounting and related portfolio accounting services, all necessary office space, equipment, personnel, compensation and facilities for handling the affairs of the Funds and other services. Without limiting the generality of the foregoing, the Administrator (or its appointed service provider): assists with the preparation of prospectuses, statements of additional information, registration statements, and proxy materials; develops and prepares communications to shareholders, including the annual and semi-annual reports to shareholders; coordinates and supervises the preparation and filing of Fund tax returns; assists with the design, development, and operation of the Funds; prepares the Funds’ financial statements; determines the net asset value of the Funds’ shares; supervises the Funds’ transfer agent with respect to the payment of dividends and other distributions to shareholders; and calculates performance data of the Funds. For the year ended August 31, 2016, 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

† 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.”

135

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NOTES TO FINANCIAL STATEMENTS — (continued)

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 year ended August 31, 2016, 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 year ended August 31, 2016, VALIC earned fees as reflected in the Statements of Operations based upon the aforementioned rate.

On January 23, 2001, the Board ratified a Deferred Compensation Plan for its independent trustees who are not officers, directors, or employees of VALIC, or an affiliate of VALIC. The effective date of the plan was January 1, 2001. The first deferred payment was made in March of 2001. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred may be invested in up to three different affiliated mutual funds that are specified in the plan as selected by the trustees. Obligations under the deferred compensation plan represents unsecured claims against the general assets of the Funds. For the year ended August 31, 2016, VC II has deferred $22,100 of trustee compensation.

At August 31, 2016, the following affiliates owned outstanding shares of the following Funds:

	Holder
Fund	American General Life Insurance Co.			The United States Life Insurance Co.			VALIC			VC I Dynamic Allocation Fund			VC II Aggressive Growth Lifestyle			VC II Conservative Growth Lifestyle			VC II Moderate Growth Lifestyle
Aggressive Growth Lifestyle		—	%		—	%		100.00	%		—	%		—	%		—	%		—	%
Capital Appreciation		—			—			45.73			7.14			19.81			4.19			23.13
Conservative Growth Lifestyle		—			—			100.00			—			—			—			—
Core Bond		—			—			82.81			1.26			2.63			5.52			7.78
High Yield Bond		0.02			—			69.24			0.52			7.07			7.75			15.40
International Opportunities		—			—			92.55			—			3.03			1.22			3.20
Large Cap Value		—			—			88.60			—			4.27			1.47			5.66
Mid Cap Growth		—			—			87.28			1.80			5.79			0.55			4.58
Mid Cap Value		0.24			—			90.56			0.21			3.32			0.78			4.89
Moderate Growth Lifestyle		—			—			100.00			—			—			—			—
Money Market II		—			—			100.00			—			—			—			—
Small Cap Growth		—			—			76.63			4.50			10.49			0.55			7.83
Small Cap Value		—			—			88.74			0.89			4.11			1.38			4.88
Socially Responsible		—			—			100.00			—			—			—			—
Strategic Bond		0.06			0.00			73.10			0.62			4.11			8.38			13.73

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 year ended August 31, 2016, transactions in these securities were as follows:

Aggressive Growth Lifestyle Fund

Security	Income		Capital Gain Distribution Received		Value at 08/31/2015		Cost of Purchases†		Proceeds from Sales		Realized Gain/(Loss)			Change in Unrealized Gain/(Loss)			Value at 08/31/2016
VALIC Co. I Blue Chip Growth Fund	$	—	$	2,348,468	$	25,770,615	$	2,348,468	$	11,692,996	$	3,735,652		$	(4,840,317	)	$	15,321,422
VALIC Co. I Capital Conservation Fund		159,212		17,245		12,084,780		176,457		6,558,511		27,296			255,368			5,985,390
VALIC Co. I Dividend Value Fund		317,058		1,431,822		6,809,583		10,637,968		—		—			(317,306	)		17,130,245
VALIC Co. I Emerging Economies Fund		—		—		8,512,756		10,043,451		8,369,040		(2,389,142	)		2,135,549			9,933,574
VALIC Co. I Foreign Value Fund		547,032		—		25,055,812		1,209,222		—		—			357,301			26,622,335
VALIC Co. I Global Real Estate Fund		1,318,038		1,880,869		37,088,386		16,835,699		2,185,342		551,848			2,065,634			54,356,225
VALIC Co. I Government Securities Fund		228,815		—		11,720,409		358,747		4,886,149		(62,544	)		271,237			7,401,700
VALIC Co. I Inflation Protected Fund		36,935		5,614		6,147,229		42,550		3,016,911		(158,850	)		242,521			3,256,539
VALIC Co. I International Equities Index Fund		1,530,426		—		53,598,627		13,812,935		32,222,147		(2,498,337	)		854,250			33,545,328
VALIC Co. I International Growth Fund		357,270		1,968,436		26,111,544		3,115,286		9,362,734		297,677			(2,738,092	)		17,423,681
VALIC Co. I Mid Cap Index Fund		300,026		2,289,324		20,824,165		5,289,842		—		—			450,479			26,564,486
VALIC Co. I Mid Cap Strategic Growth Fund		—		850,500		6,281,073		850,500		772,882		(26,040	)		(335,488	)		5,997,163
VALIC Co. I Nasdaq-100 Index Fund		91,531		562,569		15,744,312		654,100		5,002,977		2,083,562			(1,121,721	)		12,357,276
VALIC Co. I Science & Technology Fund		—		1,533,105		12,927,808		1,533,105		6,563,755		2,818,725			(2,754,153	)		7,961,730
VALIC Co. I Small Cap Index Fund		349,121		2,000,880		25,240,442		4,099,783		—		—			278,039			29,618,264
VALIC Co. I Small Cap Special Values Fund		171,914		1,148,373		7,706,450		6,092,097		—		—			353,773			14,152,320
VALIC Co. I Stock Index Fund		459,306		1,343,293		18,884,635		9,878,888		9,134,365		(435,183	)		825,356			20,019,331

136

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

Aggressive Growth Lifestyle Fund (continued)

Security	Income		Capital Gain Distribution Received		Value at 08/31/2015		Cost of Purchases†		Proceeds from Sales		Realized Gain/(Loss)			Change in Unrealized Gain/(Loss)			Value at 08/31/2016
VALIC Co. I Value Fund	$	47,310	$	—	$	1,751,711	$	1,354,438	$	—	$	—		$	289,247		$	3,395,396
VALIC Co. II Capital Appreciation Fund		60,449		1,511,764		15,534,457		1,572,212		—		—			(278,622	)		16,828,047
VALIC Co. II Core Bond Fund		636,911		88,296		44,100,331		4,523,930		18,134,755		222,856			938,303			31,650,665
VALIC Co. II High Yield Bond Fund		1,480,624		—		21,033,471		22,724,102		2,950,248		(142,839	)		1,158,569			41,823,055
VALIC Co. II International Opportunities Fund		183,098		—		9,944,537		7,242,783		—		—			845,106			18,032,426
VALIC Co. II Large Cap Value Fund		111,007		—		6,269,332		2,825,210		—		—			752,910			9,847,452
VALIC Co. II Mid Cap Growth Fund		—		542,557		7,781,765		542,557		977,878		52,105			(402,554	)		6,995,995
VALIC Co. II Mid Cap Value Fund		85,635		4,404,889		27,948,619		6,727,931		—		—			(1,528,152	)		33,148,398
VALIC Co. II Small Cap Growth Fund		—		1,047,429		10,659,610		1,047,429		581,737		(34,383	)		(609,501	)		10,481,418
VALIC Co. II Small Cap Value Fund		225,640		2,268,937		15,174,736		6,262,692		—		—			(295,933	)		21,141,495
VALIC Co. II Strategic Bond Fund		902,759		70,730		28,204,318		16,033,753		11,140,075		(525,019	)		1,275,541			33,848,518
VALIC Co. I International Government Bond Fund		—		—		—		520,178		—		—			11,599			531,777
	$	9,600,117	$	27,315,100	$	508,911,513	$	158,356,313	$	133,552,502	$	3,517,384		$	(1,861,057	)	$	535,371,651

Conservative Growth Lifestyle Fund

Security	Income		Capital Gain Distribution Received		Value at 08/31/2015		Cost of Purchases†		Proceeds from Sales		Realized Gain/(Loss)			Change in Unrealized Gain/(Loss)			Value at 08/31/2016
VALIC Co. I Blue Chip Growth Fund	$	—	$	287,829	$	8,241,659	$	287,829	$	6,242,722	$	1,065,900		$	(1,025,801	)	$	2,326,865
VALIC Co. I Capital Conservation Fund		277,367		30,043		15,268,887		307,410		2,605,423		13,075			476,969			13,460,918
VALIC Co. I Dividend Value Fund		—		—		—		7,092,796		—		—			16,526			7,109,322
VALIC Co. I Emerging Economies Fund		—		—		2,766,752		1,556,766		2,850,099		(571,967	)		639,338			1,540,790
VALIC Co. I Foreign Value Fund		256,896		—		11,864,958		472,824		1,195,793		(230,884	)		348,701			11,259,806
VALIC Co. I Global Real Estate Fund		519,208		740,920		10,957,965		8,801,165		1,150,445		(56,345	)		888,162			19,440,502
VALIC Co. I Government Securities Fund		294,842		—		7,341,182		6,776,344		2,805,511		(111,715	)		252,487			11,452,787
VALIC Co. I Inflation Protected Fund		99,209		15,082		10,045,842		1,315,120		1,672,724		17,722			272,272			9,978,232
VALIC Co. I International Equities Index Fund		788,902		—		28,778,237		4,682,250		17,285,323		(2,394,416	)		1,361,572			15,142,320
VALIC Co. I International Government Bond Fund		118		17		1,355,226		317,778		1,354,390		(90,198	)		101,258			329,674
VALIC Co. I International Growth Fund		201,414		1,109,724		13,246,930		3,270,813		8,725,250		(1,207,621	)		(247,267	)		6,337,605
VALIC Co. I Mid Cap Index Fund		996		7,599		3,173,232		3,167,033		3,934,642		(145,154	)		126,164			2,386,633
VALIC Co. I Mid Cap Strategic Growth Fund		—		128,971		1,903,817		128,971		1,304,012		(273,836	)		216,991			671,931
VALIC Co. I Nasdaq-100 Index Fund		5,283		32,471		3,394,272		37,754		2,964,326		1,029,697			(817,414	)		679,983
VALIC Co. I Science & Technology Fund		—		224,786		3,154,469		224,786		2,747,976		218,689			(160,700	)		689,268
VALIC Co. I Small Cap Index Fund		64,544		369,916		6,329,604		2,117,417		3,249,170		(108,608	)		386,481			5,475,724
VALIC Co. I Small Cap Special Values Fund		52,957		353,746		1,948,066		3,561,531		—		—			221,789			5,731,386
VALIC Co. I Stock Index Fund		—		—		2,632,147		4,375,293		5,107,375		36,786			110,214			2,047,065
VALIC Co. I Value Fund		7,380		—		156,467		625,655		—		—			68,889			851,011
VALIC Co. II Capital Appreciation Fund		12,790		319,867		3,286,866		332,658		—		—			(58,953	)		3,560,571
VALIC Co. II Core Bond Fund		1,318,194		182,743		70,209,752		15,576,916		21,718,925		318,668			1,982,533			66,368,944
VALIC Co. II High Yield Bond Fund		1,833,105		—		34,147,106		12,355,494		1,716,376		(20,033	)		1,073,841			45,840,032
VALIC Co. II International Opportunities Fund		77,214		—		3,646,319		3,636,938		353,656		1,119			315,810			7,246,530
VALIC Co. II Large Cap Value Fund		38,352		—		1,586,068		1,537,388		—		—			278,771			3,402,227
VALIC Co. II Mid Cap Growth Fund		—		67,234		1,965,116		67,234		1,318,589		(141,951	)		93,551			665,361
VALIC Co. II Mid Cap Value Fund		20,097		1,033,738		6,426,175		1,671,628		—		—			(318,546	)		7,779,257
VALIC Co. II Small Cap Growth Fund		—		76,533		1,685,011		76,533		1,156,899		(185,352	)		123,540			542,833
VALIC Co. II Small Cap Value Fund		75,413		758,316		2,399,050		4,762,050		—		—			(95,269	)		7,065,831
VALIC Co. II Strategic Bond Fund		2,434,978		190,778		67,869,332		12,957,256		13,462,922		45,194			1,651,499			69,060,359
	$	8,379,259	$	5,930,313	$	325,780,507	$	102,093,630	$	104,922,548	$	(2,791,230	)	$	8,283,408		$	328,443,767

137

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

Moderate Growth Lifestyle Fund

Security	Income		Capital Gain Distribution Received		Value at 08/31/2015		Cost of Purchases†		Proceeds from Sales		Realized Gain/(Loss)			Unrealized Gain/(Loss)			Value at 08/31/2016
VALIC Co. I Blue Chip Growth Fund	$	—	$	2,893,598	$	31,670,997	$	2,893,598	$	17,802,061	$	4,229,137		$	(5,792,545	)	$	15,199,126
VALIC Co. I Capital Conservation Fund		515,224		55,807		33,759,892		571,031		11,298,616		(71,686	)		1,004,031			23,964,652
VALIC Co. I Dividend Value Fund		303,530		1,370,730		7,622,383		15,350,044		—		—			(104,512	)		22,867,915
VALIC Co. I Emerging Economies Fund		—		—		8,597,667		9,518,278		8,632,321		(2,176,310	)		2,115,286			9,422,600
VALIC Co. I Foreign Value Fund		647,475		—		29,554,223		1,532,014		1,869,786		(450,544	)		723,882			29,489,789
VALIC Co. I Global Real Estate Fund		1,974,912		2,818,243		48,841,329		32,405,273		4,478,133		136,996			3,292,652			80,198,117
VALIC Co. I Government Securities Fund		365,366		—		18,117,881		5,600,934		11,327,897		(306,187	)		566,715			12,651,446
VALIC Co. I Inflation Protected Fund		57,936		8,808		14,060,219		3,306,669		9,129,280		(551,921	)		743,686			8,429,373
VALIC Co. I International Equities Index Fund		2,144,737		—		71,151,189		18,231,931		49,226,199		(5,641,922	)		3,562,631			38,077,630
VALIC Co. I International Government Bond Fund		154		22		1,673,500		815,938		1,672,183		(111,461	)		134,584			840,378
VALIC Co. I International Growth Fund		517,373		2,850,552		35,027,294		7,265,689		15,263,567		(603,067	)		(2,923,409	)		23,502,940
VALIC Co. I Mid Cap Index Fund		372,927		2,845,590		25,237,619		10,069,998		1,246,105		140,998			745,841			34,948,351
VALIC Co. I Mid Cap Strategic Growth Fund		—		1,058,935		7,820,393		1,058,935		3,485,314		(922,538	)		260,090			4,731,566
VALIC Co. I Nasdaq-100 Index Fund		79,518		488,732		18,139,486		568,250		12,371,213		5,184,910			(4,146,670	)		7,374,763
VALIC Co. I Science & Technology Fund		—		1,684,404		11,825,025		1,684,404		6,303,628		1,561,155			(1,904,021	)		6,862,935
VALIC Co. I Small Cap Index Fund		503,125		2,883,503		36,791,126		10,280,806		4,222,809		(83,000	)		1,011,088			43,777,211
VALIC Co. I Small Cap Special Values Fund		192,000		1,282,545		8,831,029		11,679,530		—		—			682,240			21,192,799
VALIC Co. I Stock Index Fund		344,236		1,006,756		15,737,605		18,657,460		13,584,097		(504,722	)		769,385			21,075,631
VALIC Co. I Value Fund		37,938		—		1,556,381		2,432,024		—		—			286,252			4,274,657
VALIC Co. II Capital Appreciation Fund		70,592		1,765,434		18,141,101		1,836,026		—		—			(325,374	)		19,651,753
VALIC Co. II Core Bond Fund		2,128,411		295,066		140,436,913		24,353,712		74,951,818		878,666			2,853,207			93,570,680
VALIC Co. II High Yield Bond Fund		3,377,520		—		38,103,971		55,329,107		4,502,299		7,494			2,180,532			91,118,805
VALIC Co. II International Opportunities Fund		194,949		—		9,642,877		8,632,413		119,109		377			922,481			19,079,039
VALIC Co. II Large Cap Value Fund		135,912		—		7,347,510		4,752,002		—		—			977,749			13,077,261
VALIC Co. II Mid Cap Growth Fund		—		459,215		9,386,882		459,214		3,847,039		262,862			(738,118	)		5,523,801
VALIC Co. II Mid Cap Value Fund		122,420		6,297,021		37,578,792		13,046,161		—		—			(1,861,608	)		48,763,345
VALIC Co. II Small Cap Growth Fund		—		831,875		8,465,933		831,875		911,938		(94,978	)		(466,782	)		7,824,110
VALIC Co. II Small Cap Value Fund		267,686		2,691,734		13,910,709		11,291,468		—		—			(121,142	)		25,081,035
VALIC Co. II Strategic Bond Fund		3,795,140		297,345		89,461,946		44,681,338		23,582,390		409,966			2,138,163			113,109,023
	$	18,149,081	$	33,885,915	$	798,491,872	$	319,136,122	$	279,827,802	$	1,294,225		$	6,586,314		$	845,680,731

† 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 year ended August 31, 2016 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	$	121,441,096	$	133,552,502	$	—	$	—
Capital Appreciation		44,257,837		47,335,855		—		—
Conservative Growth Lifestyle		87,784,058		104,922,548		—		—
Core Bond		452,419,544		429,482,529		1,209,120,616		1,124,195,696
High Yield Bond		276,343,035		165,034,647		—		—
International Opportunities		347,238,738		383,487,630		—		—
Large Cap Value		159,630,035		137,897,734		—		—
Mid Cap Growth		125,522,305		161,528,704		—		—
Mid Cap Value		401,895,646		398,528,468		—		—
Moderate Growth Lifestyle		267,101,126		279,827,802		—		—
Money Market II		—		—		—		—
Small Cap Growth		38,024,707		49,695,236		—		—
Small Cap Value		274,515,495		305,137,899		—		—
Socially Responsible		180,208,014		201,481,156		—		—
Strategic Bond		582,813,017		664,877,431		652,399,044		544,657,856

138

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

Note 5 — Federal Income Taxes

The following details the tax basis of distributions as well as the components of distributable earnings. The tax basis components of distributable earnings differ from the amounts reflected in the Statements of Assets and Liabilities by temporary book/tax differences primarily arising from wash sales, post October losses, investments in passive foreign investment companies, treatment of deferred compensation, late year ordinary losses, straddles, investments in partnerships, treatment of defaulted securities and derivative transactions.

The information in the following table is presented on the basis of cost for Federal Income Tax purposes at August 31, 2016.

Fund	Identified Cost of Investments Owned		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Aggressive Growth Lifestyle	$	525,627,580	$	24,852,548	$	(15,108,477	)	$	9,744,071
Capital Appreciation		69,700,829		16,789,976		(1,161,504	)		15,628,472
Conservative Growth Lifestyle		329,752,880		5,756,333		(7,065,446	)		(1,309,113	)
Core Bond		1,222,200,851		39,243,903		(2,943,042	)		36,300,861
High Yield Bond		621,321,127		22,008,530		(14,941,945	)		7,066,585
International Opportunities		546,953,394		113,023,768		(23,629,431	)		89,394,337
Large Cap Value		216,636,057		23,639,238		(4,977,880	)		18,661,358
Mid Cap Growth		110,131,324		15,352,774		(2,710,170	)		12,642,604
Mid Cap Value		898,814,293		150,106,796		(37,519,730	)		112,587,066
Moderate Growth Lifestyle		833,304,869		29,444,106		(17,068,244	)		12,375,862
Money Market II		142,699,700		—		—			—
Small Cap Growth		104,927,923		17,959,923		(8,102,650	)		9,857,273
Small Cap Value		484,293,314		87,903,517		(32,699,302	)		55,204,215
Socially Responsible		621,644,176		158,894,383		(18,812,603	)		140,081,780
Strategic Bond		859,948,215		26,015,410		(9,049,261	)		16,966,149

The tax character of distributions paid may differ from the Statement of Changes in Net Assets due to short-term gains treated as ordinary income distributions for tax purposes.

The tax basis distributable earnings at August 31, 2016 and the tax character of distributions paid during the year ended August 31, 2016 were as follows:

	Distributable Earnings								Tax Distributions
	For the year ended August 31, 2016
Fund	Ordinary Income		Long-term Capital Gains and Other Losses			Unrealized Appreciation (Depreciation)@			Ordinary Income		Long-Term Capital Gains
Aggressive Growth Lifestyle	$	10,175,053	$	30,381,169		$	9,744,071		$	13,270,729	$	34,330,762
Capital Appreciation		444,641		7,972,350			15,628,472			312,016		7,803,191
Conservative Growth Lifestyle		8,581,634		2,821,833			(1,309,113	)		9,991,705		11,963,320
Core Bond		27,768,658		(1,908,578	)		36,300,861			26,673,576		—
High Yield Bond		27,551,970		(34,993,409	)		7,066,358			23,145,260		—
International Opportunities		7,790,735		(93,325,579	)		89,320,198			6,570,282		—
Large Cap Value		3,049,306		(17,818,892	)		18,661,358			2,372,082		—
Mid Cap Growth		—		(2,327,330	)		12,642,604			—		9,306,137
Mid Cap Value		6,514,472		62,136,734			112,587,016			2,541,034		130,705,432
Moderate Growth Lifestyle		18,966,348		34,930,260			12,375,862			21,298,906		41,294,498
Money Market II		6,406		—			—			16,693		—
Small Cap Growth		—		6,502,058			9,857,273			69,228		9,838,071
Small Cap Value		5,369,680		19,109,755			55,204,215			10,495,948		52,562,489
Socially Responsible		12,252,457		52,201,632			140,081,780			10,420,982		45,692,358
Strategic Bond		28,271,122		(10,351,324	)		16,957,611			32,224,009		917,775

@ Unrealized appreciation (depreciation) includes amounts for derivatives and other assets and liabilities denominated in foreign currency.

139

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

The tax character of distributions paid during the year ended August 31, 2015 were as follows:

	Tax Distributions
Fund	Ordinary Income		Long-Term Capital Gains
Aggressive Growth Lifestyle	$	10,015,465	$	36,393,527
Capital Appreciation		272,960		—
Conservative Growth Lifestyle		12,368,253		9,535,583
Core Bond		21,848,211		—
High Yield Bond		21,285,525		—
International Opportunities		7,671,663		—
Large Cap Value		2,722,460		—
Mid Cap Growth		5,454,990		17,636,410
Mid Cap Value		10,189,508		84,711,714
Moderate Growth Lifestyle		18,139,636		43,143,104
Money Market II		16,299		—
Small Cap Growth		421,402		11,885,623
Small Cap Value		14,057,722		58,550,498
Socially Responsible		8,278,684		—
Strategic Bond		33,663,602		1,806,930

As of August 31, 2016, for Federal income tax purposes, the Funds indicated below have capital loss carryforwards, which expire in the year indicated, which are available to offset future capital gains, if any:

	Capital Loss Carryforward†		Unlimited†
Fund	2018		ST		LT
Aggressive Growth Lifestyle	$	—	$	—	$	—
Capital Appreciation		—		—		—
Conservative Growth Lifestyle		—		—		—
Core Bond		—		—		1,908,578
High Yield Bond		25,316,663		6,794,791		2,881,955
International Opportunities		93,325,579		—		—
Large Cap Value		17,818,892		—		—
Mid Cap Growth		—		2,327,330		—
Mid Cap Value		—		—		—
Moderate Growth Lifestyle		—		—		—
Money Market II		—		—		—
Small Cap Growth		—		—		—
Small Cap Value		—		—		—
Socially Responsible		—		—		—
Strategic Bond		—		3,364,943		6,986,381

† On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. Under the Act, a Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term losses rather than being considered all short-term as under previous law.

The Funds indicated below utilized capital loss carryforwards, which offset net taxable gains realized in the current year.

Fund	Capital Loss Carryforward Utilized
Aggressive Growth Lifestyle	$	—
Capital Appreciation		—
Conservative Growth Lifestyle		—
Core Bond		—
High Yield Bond		—
International Opportunities		18,065,899

140

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

Fund	Capital Loss Carryforward Utilized
Large Cap Value	$	10,204,568
Mid Cap Growth		—
Mid Cap Value		—
Moderate Growth Lifestyle		—
Money Market II		879
Small Cap Growth		—
Small Cap Value		—
Socially Responsible		—
Strategic Bond		—

Under the current tax law, capital losses realized after October 31 and late year ordinary losses may be deferred and treated as occurring on the first day of the following year. For the fiscal year ended August 31, 2016, the Funds elected to defer late year ordinary losses and post October capital losses as follows:

Fund	Deferred Late Year Ordinary Loss		Deferred  Post-October Short-Term Capital Loss			Deferred  Post-October Long-Term Capital Loss
Aggressive Growth Lifestyle	$	—	$	—		$	—
Capital Appreciation		—		2,395,637			—
Conservative Growth Lifestyle		—		21,888			—
Core Bond		—		(3,800,643	)		5,482,755
High Yield Bond		—		1,421,111			10,857,666
International Opportunities		—		13,144,487			—
Large Cap Value		—		1,941,433			—
Mid Cap Growth		183,117		5,238,470			(4,934,885	)
Mid Cap Value		—		9,057,391			—
Moderate Growth Lifestyle		—		—			—
Money Market II		—		—			—
Small Cap Growth		140,096		1,640,601			—
Small Cap Value		307		9,069,947			—
Socially Responsible		—		—			—
Strategic Bond		886,936		1,443,622			16,407,599

For the period ended August 31, 2016, the reclassifications to the components of net assets arising from book/tax differences resulted in increases (decreases) that were primarily due to tax treatment of net investment losses, principal paydown adjustments, non-deductible expenses, disposition of passive foreign investment companies securities, foreign currency transactions, distributions from underlying funds, treatment of derivative transactions and investments in partnerships as follows:

Fund	Accumulated Undistributed Net Investment Income (Loss)			Accumulated Undistributed Net Realized Gain (Loss)			Capital Paid-in
Aggressive Growth Lifestyle	$	1,084,032		$	(1,084,032	)	$	—
Capital Appreciation		67			(67	)		—
Conservative Growth Lifestyle		521,958			(521,958	)		—
Core Bond		2,489,561			(2,489,561	)		—
High Yield Bond		957,556			(957,556	)		—
International Opportunities		1,959,084			(1,959,084	)		—
Large Cap Value		(164,505	)		164,505			—
Mid Cap Growth		608,444			—			(608,444	)
Mid Cap Value		380,060			(380,060	)		—
Moderate Growth Lifestyle		1,621,046			(1,621,046	)		—
Money Market II		—			—			—
Small Cap Growth		208,958			(423	)		(208,535	)
Small Cap Value		51,582			(51,582	)		—
Socially Responsible		655,864			(655,864	)		—
Strategic Bond		(770,739	)		770,739			—

141

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

Note 6 — Capital Share Transactions

Transactions in capital shares of each class of each Fund were as follows:

	Aggressive Growth Lifestyle												Capital Appreciation
	For the year ended August 31, 2016						For the year ended August 31, 2015						For the year ended August 31, 2016						For the year ended August 31, 2015
	Shares			Amount			Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		2,529,023		$	26,519,694			4,203,033		$	49,369,747			165,944		$	2,726,232			121,463		$	2,010,124
Reinvested dividends		4,837,550			47,601,491			4,096,116			46,408,992			527,990			8,115,207			16,113			272,960
Shares redeemed		(3,663,417	)		(38,225,556	)		(3,138,018	)		(36,389,891	)		(394,882	)		(6,423,847	)		(614,048	)		(10,080,953	)
Net increase (decrease)		3,703,156		$	35,895,629			5,161,131		$	59,388,848			299,052		$	4,417,592			(476,472	)	$	(7,797,869	)
	Conservative Growth Lifestyle												Core Bond
	For the year ended August 31, 2016						For the year ended August 31, 2015						For the year ended August 31, 2016						For the year ended August 31, 2015
	Shares			Amount			Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		1,704,814		$	20,114,374			3,147,465		$	40,276,173			29,384,378		$	324,369,615			21,593,664		$	241,380,387
Reinvested dividends		1,934,363			21,955,025			1,760,759			21,903,836			2,420,470			26,673,576			1,989,819			21,848,211
Shares redeemed		(3,130,108	)		(37,003,004	)		(2,238,876	)		(28,446,478	)		(22,860,308	)		(253,759,878	)		(11,457,616	)		(127,286,985	)
Net increase (decrease)		509,069		$	5,066,395			2,669,348		$	33,733,531			8,944,540		$	97,283,313			12,125,867		$	135,941,613
	High Yield Bond												International Opportunities
	For the year ended August 31, 2016						For the year ended August 31, 2015						For the year ended August 31, 2016						For the year ended August 31, 2015
	Shares			Amount			Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		19,111,895		$	140,865,271			14,049,866		$	108,511,346			2,689,365		$	41,012,286			6,282,779		$	93,309,500
Reinvested dividends		3,241,633			23,145,260			2,789,715			21,285,525			426,088			6,570,282			486,781			7,671,663
Shares redeemed		(7,537,158	)		(54,445,820	)		(6,525,984	)		(50,794,785	)		(5,403,603	)		(83,905,951	)		(5,072,832	)		(76,283,610	)
Net increase (decrease)		14,816,370		$	109,564,711			10,313,597		$	79,002,086			(2,288,150	)	$	(36,323,383	)		1,696,728		$	24,697,553
	Large Cap Value												Mid Cap Growth
	For the year ended August 31, 2016						For the year ended August 31, 2015						For the year ended August 31, 2016						For the year ended August 31, 2015
	Shares			Amount			Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		2,348,522		$	41,070,164			690,649		$	12,355,120			931,126		$	7,915,190			1,428,370		$	14,011,065
Reinvested dividends		136,483			2,372,082			149,750			2,722,460			1,179,485			9,306,137			2,477,618			23,091,400
Shares redeemed		(1,278,767	)		(22,123,285	)		(2,103,773	)		(37,086,765	)		(5,279,491	)		(43,276,809	)		(2,516,951	)		(25,399,865	)
Net increase (decrease)		1,206,238		$	21,318,961			(1,263,374	)	$	(22,009,185	)		(3,168,880	)	$	(26,055,482	)		1,389,037		$	11,702,600
	Mid Cap Value												Moderate Growth Lifestyle
	For the year ended August 31, 2016						For the year ended August 31, 2015						For the year ended August 31, 2016						For the year ended August 31, 2015
	Shares			Amount			Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		2,878,053		$	58,872,960			3,049,044		$	71,884,895			3,284,540		$	45,784,397			5,164,163		$	78,788,402
Reinvested dividends		6,976,255			133,246,466			4,081,773			94,901,222			4,706,271			62,593,404			4,137,930			61,282,740
Shares redeemed		(3,537,996	)		(75,149,064	)		(3,222,063	)		(79,026,342	)		(4,064,492	)		(56,364,059	)		(3,799,310	)		(57,394,855	)
Net increase (decrease)		6,316,312		$	116,970,362			3,908,754		$	87,759,775			3,926,319		$	52,013,742			5,502,783		$	82,676,287
	Money Market II												Small Cap Growth
	For the year ended August 31, 2016						For the year ended August 31, 2015						For the year ended August 31, 2016						For the year ended August 31, 2015
	Shares			Amount			Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		72,393,205		$	72,393,205			64,201,569		$	64,201,569			476,646		$	6,587,220			801,542		$	13,419,432
Reinvested dividends		16,693			16,693			16,299			16,299			826,986			9,907,299			772,084			12,307,025
Shares redeemed		(91,029,058	)		(91,029,058	)		(75,165,074	)		(75,165,074	)		(1,453,590	)		(20,128,160	)		(1,389,764	)		(23,157,490	)
Net increase (decrease)		(18,619,160	)	$	(18,619,160	)		(10,947,206	)	$	(10,947,206	)		(149,958	)	$	(3,633,641	)		183,862		$	2,568,967

142

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

	Small Cap Value												Socially Responsible
	For the year ended August 31, 2016						For the year ended August 31, 2015						For the year ended August 31, 2016						For the year ended August 31, 2015
	Shares			Amount			Shares			Amount			Shares			Amount			Shares			Amount
Shares sold		4,061,698		$	55,420,760			2,479,534		$	40,547,760			1,163,692		$	22,038,052			5,383,674		$	103,811,338
Reinvested dividends		5,101,815			63,058,437			4,792,622			72,608,220			3,084,846			56,113,340			422,597			8,278,684
Shares redeemed		(6,081,367	)		(82,041,116	)		(6,004,887	)		(95,375,625	)		(4,041,692	)		(76,281,649	)		(3,257,382	)		(62,192,510	)
Net increase (decrease)		3,082,146		$	36,438,081			1,267,269		$	17,780,355			206,846		$	1,869,743			2,548,889		$	49,897,512
	Strategic Bond
	For the year ended August 31, 2016						For the year ended August 31, 2015
	Shares			Amount			Shares			Amount
Shares sold		9,365,661		$	102,893,415			8,532,991		$	98,799,263
Reinvested dividends		3,063,011			33,141,784			3,147,341			35,470,532
Shares redeemed		(10,873,519	)		(119,117,147	)		(4,401,538	)		(50,254,535	)
Net increase (decrease)		1,555,153		$	16,918,052			7,278,794		$	84,015,260

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 year ended August 31, 2016, 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, 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 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, the Series’ custodian. The interest payable under the committed line of credit is the higher of the Federal Funds Rate (but not less than zero) plus 125 basis points or the One-Month London Interbank Offered Rate (but not less than zero) plus 125 basis points. In addition, the commitment fee on the daily unused portion of the committed line of credit is equal to 25 basis points per annum.

143

VALIC Company II

NOTES TO FINANCIAL STATEMENTS — (continued)

The Series also paid a portion of an upfront fee in the amount of $50,000 at the closing of the committed and uncommitted lines of credit on October 7, 2016. Borrowings under the line of credit will commence when the respective Fund’s cash shortfall exceeds $100,000. For the year ended August 31, 2016, the following Funds had borrowings:

Fund	Days Outstanding		Interest Charges		Average Debt Utilized		Weighted Average Interest
Aggressive Growth Lifestyle		1	$	8	$	166,618		1.75	%
International Opportunities		6		776		2,727,882		1.72
Large Cap Value		8		45		128,722		1.58
Mid Cap Growth		1		27		637,716		1.54
Mid Cap Value		1		4		109,448		1.39
Small Cap Growth		1		8		178,996		1.69

As of August 31, 2016, the following Portfolio had an outstanding borrowing:

Fund	Amount
International Opportunities	$	197,196

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 year ended August 31, 2016, none of the Funds participated in this program.

Note 11 — Security Transactions with Affiliated Portfolios

The Funds are permitted to transfer securities by purchasing from and/or selling to other affiliated funds under certain conditions approved by the Board. The affiliated funds involved in such transactions must have a common investment adviser or investment advisers which are affiliated persons of each other, common Trustees, and/or common officers in compliance with Rule 17a-7 of the 1940 Act. Pursuant to the Act, such a transaction must be either a purchase or a sale, for no consideration other than cash payment against prompt delivery of the security at the current market price. No brokerage commission or fee (except for customary transfer fees), or other remuneration is paid in connection with such transactions.

For the year ended August 31, 2016, the following Funds engaged in security transactions with affiliated Funds:

Fund	Cost of Purchases		Proceeds from Sales		Realized Gain/ (Loss)
International Opportunities	$	993,417	$	420,120	$	(42,262	)
Mid Cap Value		—		69,933		38,130

For the year ended August 31, 2016, the following Funds incurred brokerage commissions with affiliated brokers which are affiliates of a sub-advisor:

Affiliated Broker	International Opportunities		Large Cap Value		Small Cap Value
ConvergEx Execution Solutions LLC	$	—	$	353	$	—
J.P. Morgan Securities		—		—		29,277
Macquarie Bank		6,202		—		—
Pershing, LLC		—		1,391		—
UBS AG		65,506		—		—
Wells Fargo Securities, LLC		—		—		689

Note 12 — Subsequent Event Note

At an in-person meeting held on January 25-26, 2016 (the “Meeting”), the Board approved a proposal to convert the Money Market II Fund (the “Fund”) into a “government money market fund” as defined by Rule 2a-7 under the Investment Company Act of 1940, as amended. In connection with this approval, the Board also approved a change in the Fund’s name to the “Government Money Market II Fund.” The conversion and change in the Fund’s name became effective on September 28, 2016. In order to qualify as a government money market fund, the Fund must invest at least 99.5% of its total assets in government securities, cash, or repurchase agreements collateralized by government securities or cash. As a government money market fund, the Fund will seek to maintain a stable $1.00 net asset value per share and will not be subject to liquidity fees and/or redemption gates.

144

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
	Year Ended August 31,															Year Ended August 31,
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
PER SHARE DATA
Net asset value at beginning of period	$	10.67		$	12.04		$	10.30		$	9.22		$	8.44		$	16.35		$	15.88		$	12.82		$	10.92		$	9.37
Income (loss) from investment operations:
Net investment income (loss)(d)		0.19			0.20			0.18			0.11			0.14			0.09			0.06			0.05			0.07			0.05
Net realized and unrealized gain (loss) on investments and foreign currencies		0.56			(0.52	)		1.77			1.10			0.79			1.20			0.46			3.08			1.88			1.55
Net increase from payments by affiliates		–			–			–			–			–			–			–			–			–			–
Total income (loss) from investment operations		0.75			(0.32	)		1.95			1.21			0.93			1.29			0.52			3.13			1.95			1.60
Distributions from:
Net investment income		(0.23	)		(0.19	)		(0.11	)		(0.13	)		(0.15	)		(0.06	)		(0.05	)		(0.07	)		(0.05	)		(0.05	)
Net realized gain on securities		(0.78	)		(0.86	)		(0.10	)		–			–			(1.59	)		–			–			–			–
Total distributions		(1.01	)		(1.05	)		(0.21	)		(0.13	)		(0.15	)		(1.65	)		(0.05	)		(0.07	)		(0.05	)		(0.05	)
Net asset value at end of period	$	10.41		$	10.67		$	12.04		$	10.30		$	9.22		$	15.99		$	16.35		$	15.88		$	12.82		$	10.92
TOTAL RETURN(a)		7.53	%		(3.17	)%		19.03	%		13.21	%		11.15	%		8.33	%		3.28	%		24.43	%		17.93	%		17.13	%
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets(b)		0.10	%(e)		0.10	%(e)		0.10	%(e)		0.10	%(e)		0.10	%(e)		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Ratio of expenses to average net assets(c)		0.15	%(e)		0.14	%(e)		0.14	%(e)		0.15	%(e)		0.16	%(e)		1.00	%		0.98	%		0.99	%		1.01	%		1.07	%
Ratio of expense reductions to average net assets		–			–			–			–			–			0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Ratio of net investment income (loss) to average net assets(b)		1.78	%(e)		1.71	%(e)		1.56	%(e)		1.11	%(e)		1.62	%(e)		0.52	%		0.36	%		0.31	%		0.58	%		0.53	%
Ratio of net investment income (loss) to average net assets(c)		1.73	%(e)		1.67	%(e)		1.52	%(e)		1.06	%(e)		1.55	%(e)		0.37	%		0.23	%		0.17	%		0.42	%		0.32	%
Portfolio turnover rate		24	%		31	%		32	%		41	%		44	%		54	%		44	%		44	%		44	%		119	%
Number of shares outstanding at end of period (000’s)		51,410			47,707			42,546			38,755			34,029			5,313			5,014			5,491			5,470			5,443
Net assets at the end of period (000’s)	$	535,245		$	508,890		$	512,113		$	399,133		$	313,655		$	84,946		$	81,961		$	87,214		$	70,095		$	59,413

^(a)  Total return 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.

See Notes to Financial Statements

145

VALIC Company II

FINANCIAL HIGHLIGHTS — (continued)

Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.

	Conservative Growth Lifestyle Fund															Core Bond Fund
	Year Ended August 31,															Year Ended August 31,
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
PER SHARE DATA
Net asset value at beginning of period	$	11.95		$	13.12		$	12.13		$	12.02		$	11.22		$	10.93		$	11.09		$	10.69		$	11.41		$	10.90
Income (loss) from investment operations:
Net investment income (loss)(d)		0.30			0.31			0.29			0.26			0.29			0.24			0.23			0.24			0.23			0.30
Net realized and unrealized gain (loss) on investments and foreign currencies		0.41			(0.62	)		1.31			0.32			0.86			0.38			(0.16	)		0.44			(0.43	)		0.56
Net increase from payments by affiliates		–			–			–			–			–			–			–			–			–			–
Total income (loss) from investment operations		0.71			(0.31	)		1.60			0.58			1.15			0.62			0.07			0.68			(0.20	)		0.86
Distributions from:
Net investment income		(0.34	)		(0.29	)		(0.26	)		(0.24	)		(0.27	)		(0.22	)		(0.23	)		(0.20	)		(0.32	)		(0.30	)
Net realized gain on securities		(0.50	)		(0.57	)		(0.35	)		(0.23	)		(0.08	)		(0.03	)		–			(0.08	)		(0.20	)		(0.05	)
Total distributions		(0.84	)		(0.86	)		(0.61	)		(0.47	)		(0.35	)		(0.25	)		(0.23	)		(0.28	)		(0.52	)		(0.35	)
Net asset value at end of period	$	11.82		$	11.95		$	13.12		$	12.13		$	12.02		$	11.30		$	10.93		$	11.09		$	10.69		$	11.41
TOTAL RETURN(a)		6.19	%		(2.65	)%		13.34	%		4.93	%		10.50	%		5.78	%		0.62	%		6.44	%		(1.95	)%		8.08	%
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets(b)		0.10	%(e)		0.10	%(e)		0.10	%(e)		0.10	%(e)		0.10	%(e)		0.77	%		0.77	%		0.77	%		0.77	%		0.77	%
Ratio of expenses to average net assets(c)		0.15	%(e)		0.14	%(e)		0.15	%(e)		0.16	%(e)		0.18	%(e)		0.79	%		0.79	%		0.80	%		0.84	%		0.86	%
Ratio of expense reductions to average net assets		–			–			–			–			–			–			–			–			–			–
Ratio of net investment income (loss) to average net assets(b)		2.51	%(e)		2.45	%(e)		2.26	%(e)		2.12	%(e)		2.59	%(e)		2.16	%		2.10	%		2.24	%		2.12	%		2.79	%
Ratio of net investment income (loss) to average net assets(c)		2.46	%(e)		2.40	%(e)		2.22	%(e)		2.06	%(e)		2.51	%(e)		2.15	%		2.08	%		2.21	%		2.05	%		2.70	%
Portfolio turnover rate		27	%		33	%		31	%		53	%		36	%		139	%		153	%		169	%		175	%		177	%
Number of shares outstanding at end of period (000’s)		27,779			27,270			24,601			21,622			16,819			106,434			97,489			85,364			72,290			55,895
Net assets at the end of period (000’s)	$	328,390		$	325,797		$	322,764		$	262,360		$	202,134		$	1,202,915		$	1,065,803		$	946,699		$	772,784		$	637,701

^(a)  Total return 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.

See Notes to Financial Statements

146

VALIC Company II

FINANCIAL HIGHLIGHTS — (continued)

Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.

	High Yield Bond Fund															International Opportunities Fund
	Year Ended August 31,															Year Ended August 31,
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
PER SHARE DATA
Net asset value at beginning of period	$	7.40		$	7.93		$	7.63		$	7.64		$	7.28		$	15.08		$	15.50		$	13.78		$	11.87		$	12.47
Income (loss) from investment operations:
Net investment income (loss)(d)		0.37			0.38			0.41			0.44			0.46			0.14			0.16			0.16			0.14			0.20
Net realized and unrealized gain (loss) on investments and foreign currencies		0.13			(0.53	)		0.28			(0.03	)		0.45			0.94			(0.38	)		1.75			2.04			(0.59	)
Net increase from payments by affiliates		–			–			–			–			–			–			–			–			–			–
Total income (loss) from investment operations		0.50			(0.15	)		0.69			0.41			0.91			1.08			(0.22	)		1.91			2.18			(0.39	)
Distributions from:
Net investment income		(0.34	)		(0.38	)		(0.39	)		(0.42	)		(0.55	)		(0.16	)		(0.20	)		(0.19	)		(0.27	)		(0.21	)
Net realized gain on securities		–			–			–			–			–			–			–			–			–			–
Total distributions		(0.34	)		(0.38	)		(0.39	)		(0.42	)		(0.55	)		(0.16	)		(0.20	)		(0.19	)		(0.27	)		(0.21	)
Net asset value at end of period	$	7.56		$	7.40		$	7.93		$	7.63		$	7.64		$	16.00		$	15.08		$	15.50		$	13.78		$	11.87
TOTAL RETURN(a)		7.07	%		(2.02	)%		9.10	%		5.46	%		13.18	%		7.23	%		(1.50	)%		13.88	%		18.58	%		(2.95	)%
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets(b)		0.96	%		0.96	%		0.96	%		0.96	%		0.96	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Ratio of expenses to average net assets(c)		0.99	%		0.98	%		0.99	%		1.01	%		1.02	%		1.21	%		1.21	%		1.21	%		1.31	%		1.31	%
Ratio of expense reductions to average net assets		–			–			–			–			–			0.00	%		0.01	%		0.00	%		–			–
Ratio of net investment income (loss) to average net assets(b)		5.16	%		5.00	%		5.25	%		5.77	%		6.26	%		0.91	%		1.02	%		1.05	%		1.08	%		1.70	%
Ratio of net investment income (loss) to average net assets(c)		5.13	%		4.97	%		5.22	%		5.73	%		6.20	%		0.70	%		0.81	%		0.84	%		0.76	%		1.39	%
Portfolio turnover rate		36	%		36	%		37	%		34	%		38	%		58	%		59	%		72	%		62	%		164	%
Number of shares outstanding at end of period (000’s)		78,148			63,332			53,018			44,801			37,281			37,260			39,548			37,851			38,063			41,554
Net assets at the end of period (000’s)	$	590,679		$	468,855		$	420,459		$	341,751		$	284,818		$	596,055		$	596,301		$	586,631		$	524,503		$	493,207

^(a)  Total return 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.

See Notes to Financial Statements

147

VALIC Company II

FINANCIAL HIGHLIGHTS — (continued)

Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.

	Large Cap Value Fund															Mid Cap Growth Fund
	Year Ended August 31,															Year Ended August 31,
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
PER SHARE DATA
Net asset value at beginning of period	$	17.08		$	17.58		$	14.51		$	11.67		$	10.41		$	8.81		$	10.13		$	9.76		$	8.45		$	7.93
Income (loss) from investment operations:
Net investment income (loss)(d)		0.27			0.20			0.22			0.19			0.15			(0.02	)		(0.02	)		(0.05	)		0.00			0.00
Net realized and unrealized gain (loss) on investments and foreign currencies		1.27			(0.46	)		3.04			2.81			1.22			0.24			0.27			1.33			1.42			0.52
Net increase from payments by affiliates		–			–			–			–			–			–			–			–			–			–
Total income (loss) from investment operations		1.54			(0.26	)		3.26			3.00			1.37			0.22			0.25			1.28			1.42			0.52
Distributions from:
Net investment income		(0.21	)		(0.24	)		(0.19	)		(0.16	)		(0.11	)		–			–			(0.01	)		(0.01	)		–
Net realized gain on securities		–			–			–			–			–			(0.61	)		(1.57	)		(0.90	)		(0.10	)		–
Total distributions		(0.21	)		(0.24	)		(0.19	)		(0.16	)		(0.11	)		(0.61	)		(1.57	)		(0.91	)		(0.11	)		–
Net asset value at end of period	$	18.41		$	17.08		$	17.58		$	14.51		$	11.67		$	8.42		$	8.81		$	10.13		$	9.76		$	8.45
TOTAL RETURN(a)		9.09	%		(1.56	)%		22.55	%		26.02	%		13.30	%		3.01	%		1.66	%		13.86	%		17.06	%		6.56	%
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets(b)		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Ratio of expenses to average net assets(c)		0.89	%		0.88	%		0.88	%		0.91	%		0.93	%		1.17	%		1.14	%		1.17	%		1.18	%		1.18	%
Ratio of expense reductions to average net assets		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%		0.03	%
Ratio of net investment income (loss) to average net assets(b)		1.59	%		1.11	%		1.31	%		1.40	%		1.33	%		(0.27	)%		(0.26	)%		(0.47	)%		0.02	%		0.02	%
Ratio of net investment income (loss) to average net assets(c)		1.51	%		1.04	%		1.24	%		1.30	%		1.21	%		(0.59	)%		(0.54	)%		(0.79	)%		(0.30	)%		(0.31	)%
Portfolio turnover rate		71	%		72	%		54	%		53	%		62	%		92	%		102	%		175	%		112	%		131	%
Number of shares outstanding at end of period (000’s)		12,540			11,333			12,597			12,995			12,913			14,338			17,507			16,118			13,586			16,888
Net assets at the end of period (000’s)	$	230,844		$	193,602		$	221,453		$	188,508		$	150,682		$	120,774		$	154,291		$	163,273		$	132,584		$	142,785

^(a)  Total return 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.

See Notes to Financial Statements

148

VALIC Company II

FINANCIAL HIGHLIGHTS — (continued)

Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.

	Mid Cap Value Fund															Moderate Growth Lifestyle Fund
	Year Ended August 31,															Year Ended August 31,
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
PER SHARE DATA
Net asset value at beginning of period	$	21.82		$	25.15		$	21.66		$	17.31		$	15.28		$	14.09		$	15.61		$	13.93		$	13.10		$	12.04
Income (loss) from investment operations:
Net investment income (loss)(d)		0.14			0.07			0.05			0.07			0.06			0.30			0.29			0.28			0.21			0.24
Net realized and unrealized gain (loss) on investments and foreign currencies		1.73			(0.82	)		5.06			4.35			2.05			0.70			(0.65	)		1.99			1.04			1.06
Net increase from payments by affiliates		–			–			–			–			–			–			–			–			–			–
Total income (loss) from investment operations		1.87			(0.75	)		5.11			4.42			2.11			1.00			(0.36	)		2.27			1.25			1.30
Distributions from:
Net investment income		(0.06	)		(0.05	)		(0.08	)		(0.07	)		(0.08	)		(0.32	)		(0.28	)		(0.20	)		(0.21	)		(0.24	)
Net realized gain on securities		(3.18	)		(2.53	)		(1.54	)		–			–			(0.79	)		(0.88	)		(0.39	)		(0.21	)		–
Total distributions		(3.24	)		(2.58	)		(1.62	)		(0.07	)		(0.08	)		(1.11	)		(1.16	)		(0.59	)		(0.42	)		(0.24	)
Net asset value at end of period	$	20.45		$	21.82		$	25.15		$	21.66		$	17.31		$	13.98		$	14.09		$	15.61		$	13.93		$	13.10
TOTAL RETURN(a)		9.62	%		(3.61	)%		23.97	%		25.64	%		13.85	%		7.48	%		(2.68	)%		16.46	%		9.76	%		11.00	%
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets(b)		1.05	%		1.05	%		1.05	%		1.05	%		1.05	%		0.10	%(e)		0.10	%(e)		0.10	%(e)		0.10	%(e)		0.10	%(e)
Ratio of expenses to average net assets(c)		1.06	%		1.06	%		1.05	%		1.08	%		1.11	%		0.14	%(e)		0.13	%(e)		0.13	%(e)		0.14	%(e)		0.16	%(e)
Ratio of expense reductions to average net assets		0.00	%		0.00	%		0.00	%		0.00	%		0.01	%		–			–			–			–			–
Ratio of net investment income (loss) to average net assets(b)		0.65	%		0.28	%		0.22	%		0.37	%		0.39	%		2.15	%(e)		1.92	%(e)		1.84	%(e)		1.55	%(e)		1.99	%(e)
Ratio of net investment income (loss) to average net assets(c)		0.64	%		0.27	%		0.22	%		0.34	%		0.33	%		2.11	%(e)		1.89	%(e)		1.81	%(e)		1.50	%(e)		1.93	%(e)
Portfolio turnover rate		44	%		56	%		29	%		46	%		70	%		33	%		30	%		27	%		36	%		36	%
Number of shares outstanding at end of period (000’s)		48,776			42,460			38,551			39,686			40,101			60,581			56,655			51,152			43,504			34,532
Net assets at the end of period (000’s)	$	997,576		$	926,580		$	969,591		$	859,611		$	694,095		$	846,974		$	798,444		$	798,521		$	606,185		$	452,347

^(a)  Total return 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.

See Notes to Financial Statements

149

VALIC Company II

FINANCIAL HIGHLIGHTS — (continued)

Per share data is for a share of beneficial interest outstanding throughout the period. Total return includes reinvestment of distributions on the reinvestment date.

	Money Market II Fund															Small Cap Growth Fund
	Year Ended August 31,															Year Ended August 31,
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
PER SHARE DATA
Net asset value at beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	15.31		$	16.27		$	16.11		$	13.47		$	12.87
Income (loss) from investment operations:
Net investment income (loss)(d)		0.00			0.00			0.00			0.00			0.00			(0.03	)		(0.04	)		(0.14	)		(0.09	)		(0.07	)
Net realized and unrealized gain (loss) on investments and foreign currencies		0.00			0.00			0.00			0.00			0.00			0.42			0.97			1.68			3.92			1.66
Net increase from payments by affiliates		–			0.00			–			–			–			–			–			–			–			–
Total income (loss) from investment operations		0.00			0.00			0.00			0.00			0.00			0.39			0.93			1.54			3.83			1.59
Distributions from:
Net investment income		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		–			–			–			–			–
Net realized gain on securities		–			–			–			–			–			(1.50	)		(1.89	)		(1.38	)		(1.19	)		(0.99	)
Total distributions		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(1.50	)		(1.89	)		(1.38	)		(1.19	)		(0.99	)
Net asset value at end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	14.20		$	15.31		$	16.27		$	16.11		$	13.47
TOTAL RETURN(a)		0.01	%		0.01	%(e)		0.01	%		0.01	%		0.01	%		4.40	%		5.26	%		10.33	%		31.19	%		13.13	%
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets(b)		0.32	%		0.15	%		0.15	%		0.20	%		0.19	%		1.16	%		1.16	%		1.16	%		1.16	%		1.16	%
Ratio of expenses to average net assets(c)		0.66	%		0.64	%		0.63	%		0.65	%		0.65	%		1.29	%		1.25	%		1.26	%		1.31	%		1.33	%
Ratio of expense reduction to average net assets		–			–			–			–			–			0.01	%		0.01	%		0.00	%		0.01	%		0.01	%
Ratio of net investment income (loss) to average net assets(b)		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		(0.22	)%		(0.25	)%		(0.83	)%		(0.65	)%		(0.52	)%
Ratio of net investment income (loss) to average net assets(c)		(0.33	)%		(0.48	)%		(0.47	)%		(0.44	)%		(0.45	)%		(0.35	)%		(0.34	)%		(0.93	)%		(0.80	)%		(0.69	)%
Portfolio turnover rate		N/A			N/A			N/A			N/A			N/A			39	%		49	%		63	%		68	%		63	%
Number of shares outstanding at end of period (000’s)		141,263			159,882			170,830			186,069			187,696			7,035			7,185			7,001			6,333			6,026
Net assets at the end of period (000’s)	$	141,291		$	159,905		$	170,575		$	185,810		$	187,430		$	99,884		$	110,029		$	113,907		$	102,025		$	81,161

^(a)  Total return 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.

See Notes to Financial Statements

150

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
	Year Ended August 31,															Year Ended August 31,
	2016			2015			2014			2013			2012			2016			2015			2014			2013			2012
PER SHARE DATA
Net asset value at beginning of period	$	14.01		$	16.65		$	15.83		$	12.68		$	12.41		$	18.55		$	18.56		$	14.84		$	12.53		$	10.92
Income (loss) from investment operations:
Net investment income (loss)(d)		0.13			0.17			0.09			0.13			0.07			0.28			0.26			0.22			0.21			0.16
Net realized and unrealized gain (loss) on investments and foreign currencies		1.27			(0.56	)		2.70			3.33			0.71			1.89			(0.05	)		3.74			2.31			1.60
Net increase from payments by affiliates		–			–			–			–			0.00			–			–			–			–			–
Total income (loss) from investment operations		1.40			(0.39	)		2.79			3.46			0.78			2.17			0.21			3.96			2.52			1.76
Distributions from:										��
Net investment income		(0.17	)		(0.10	)		(0.17	)		(0.07	)		(0.12	)		(0.28	)		(0.22	)		(0.24	)		(0.21	)		(0.15	)
Net realized gain on securities		(1.67	)		(2.15	)		(1.80	)		(0.24	)		(0.39	)		(1.21	)		–			–			–			–
Total distributions		(1.84	)		(2.25	)		(1.97	)		(0.31	)		(0.51	)		(1.49	)		(0.22	)		(0.24	)		(0.21	)		(0.15	)
Net asset value at end of period	$	13.57		$	14.01		$	16.65		$	15.83		$	12.68		$	19.23		$	18.55		$	18.56		$	14.84		$	12.53
TOTAL RETURN(a)		11.27	%		(3.38	)%		18.39	%		27.78	%		6.58	%(e)		12.16	%		1.06	%		26.82	%		20.40	%		16.34	%
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets(b)		0.95	%		0.95	%		0.95	%		0.95	%		0.95	%		0.56	%		0.56	%		0.56	%		0.56	%		0.56	%
Ratio of expenses to average net assets(c)		1.04	%		1.03	%		1.03	%		1.05	%		1.08	%		0.61	%		0.61	%		0.61	%		0.62	%		0.63	%
Ratio of expense reductions to average net assets		0.00	%		0.00	%		0.01	%		0.01	%		0.01	%		–			–			–			–			–
Ratio of net investment income (loss) to average net assets(b)		0.98	%		1.02	%		0.54	%		0.91	%		0.58	%		1.47	%		1.35	%		1.29	%		1.56	%		1.39	%
Ratio of net investment income (loss) to average net assets(c)		0.89	%		0.95	%		0.46	%		0.81	%		0.46	%		1.42	%		1.31	%		1.25	%		1.49	%		1.33	%
Portfolio turnover rate		59	%		50	%		47	%		81	%		96	%		25	%		31	%		26	%		39	%		44	%
Number of shares outstanding at end of period (000’s)		37,866			34,784			33,516			32,045			32,052			39,360			39,153			36,604			39,040			47,833
Net assets at the end of period (000’s)	$	513,783		$	487,157		$	558,170		$	507,366		$	406,471		$	756,821		$	726,460		$	679,235		$	579,372		$	599,500

^(a)  Total return includes, if any, expense reimbursements and expense reductions. The effect of fees and charges incurred at the separate account level are not reflected in these performance figures. If such expenses had been included, the total return would have been lower for each period presented.

^(b)  Includes expense reimbursements, but excludes expense reductions.

^(c)  Excludes expense reimbursements and expense reductions.

^(d)  The per share amounts are calculated using the average share method.

^(e)  The Fund’s performance figure was decreased by less than 0.01% from losses realized on the disposal of investments in violation of investment restrictions.

See Notes to Financial Statements

151

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
	Year Ended August 31,
	2016			2015			2014			2013			2012
PER SHARE DATA
Net asset value at beginning of period	$	11.00		$	11.77		$	11.23		$	11.78		$	11.31
Income (loss) from investment operations:
Net investment income (loss)(d)		0.38			0.42			0.48			0.46			0.49
Net realized and unrealized gain (loss) on investments and foreign currencies		0.39			(0.68	)		0.62			(0.44	)		0.58
Net increase from payments by affiliates		–			–			–			–			–
Total income (loss) from investment operations		0.77			(0.26	)		1.10			0.02			1.07
Distributions from:
Net investment income		(0.45	)		(0.41	)		(0.44	)		(0.46	)		(0.60	)
Net realized gain on securities		(0.04	)		(0.10	)		(0.12	)		(0.11	)		–
Total distributions		(0.49	)		(0.51	)		(0.56	)		(0.57	)		(0.60	)
Net asset value at end of period	$	11.28		$	11.00		$	11.77		$	11.23		$	11.78
TOTAL RETURN(a)		7.15	%		(2.32	)%		9.89	%		0.03	%		9.97	%
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets		0.88	%		0.87	%		0.88	%		0.89	%(b)		0.89	%(b)
Ratio of expenses to average net assets		0.88	%		0.87	%		0.88	%		0.91	%(c)		0.93	%(c)
Ratio of expense reductions to average net assets		–			–			–			–			–
Ratio of net investment income (loss) to average net assets		3.51	%		3.67	%		4.11	%		4.00	%(b)		4.39	%(b)
Ratio of net investment income (loss) to average net assets		3.51	%		3.67	%		4.11	%		3.98	%(c)		4.35	%(c)
Portfolio turnover rate		162	%		132	%		150	%		164	%		191	%
Number of shares outstanding at end of period (000’s)		72,983			71,428			64,149			61,398			53,061
Net assets at the end of period (000’s)	$	823,464		$	785,635		$	755,092		$	689,403		$	624,863

^(a)  Total return 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.

See Notes to Financial Statements

152

VALIC Company II

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders of VALIC Company II

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Aggressive Growth Lifestyle Fund, Capital Appreciation Fund, Conservative Growth Lifestyle Fund, Core Bond Fund, High Yield Bond Fund, International Opportunities Fund, Large Cap Value Fund, Mid Cap Growth Fund, Mid Cap Value Fund, Moderate Growth Lifestyle Fund, Government Money Market II Fund (formerly, Money Market II Fund), Small Cap Growth Fund, Small Cap Value Fund, Socially Responsible Fund, and Strategic Bond Fund (fifteen funds constituting VALIC Company II, hereinafter referred to as the “Series’’) at August 31, 2016, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Series’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2016 by correspondence with the custodian, transfer agent, and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion expressed above.

PricewaterhouseCoopers LLP

Houston, Texas

October 28, 2016

153

VALIC Company II

APPROVAL OF ADVISORY AGREEMENTS (unaudited)

Approval at August 2016 Meeting

At an in-person meeting held on August 1-2, 2016, the Board of Trustees (the “Board”) of VALIC Company II (“VC II”), including the Trustees that are not interested persons of VC II, as such term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Trustees”), approved the Investment Advisory Agreement with respect to each series of VC II (each a “Fund,” and collectively, the “Funds”) between The Variable Annuity Life Insurance Company (“VALIC”) and VC II (the “Advisory Agreement”) and the Investment Sub-Advisory Agreements between VALIC and each of the following sub-advisers of VC II (collectively, the “Sub-advisory Agreements”): Janus Capital Management, LLC (“Janus”), Perkins Investment Management, LLC (“Perkins”), J.P. Morgan Investment Management, Inc. (“JPMIM”), Massachusetts Financial Services Company (“MFS”), PineBridge Investments, LLC (“PineBridge”), Robeco Investment Management, Inc. (“Robeco”), SunAmerica Asset Management, LLC (“SAAMCo”), The Boston Company Asset Management, Inc. (“TBCAM”), Wells Capital Management Incorporated (“Wells Capital”) and Wellington Management Company LLP (“Wellington”) (collectively referred to as the “Sub-advisers”). The Advisory Agreement and Sub-advisory Agreements are collectively referred to as the “Advisory Contracts.” Prior to the August 1-2, 2016 meeting at which the Advisory Contracts were approved, the Board also discussed and considered information regarding the proposed continuation of the Advisory Contracts at an in-person meeting held on July 11-12, 2016.

In connection with the approval of the Advisory Contracts, the Board received materials relating to certain factors the Board considered in determining to renew such Advisory Contracts. Those factors included: (1) the nature, extent and quality of services provided by VALIC and the Sub-advisers; (2) the advisory fee and sub-advisory fees charged in connection with VALIC’s and the Sub-advisers’ management of each Fund, compared to advisory fee rates and sub-advisory fee rates of a group of funds with similar investment objectives (respectively, the “Expense Group/Universe” and the “Subadvisory Expense Group/Universe”), as selected by an independent third-party provider of mutual fund data; (3) the investment performance of the Funds compared to performance of comparable funds as selected by an independent third-party provider of investment company data (“Performance Group/Universe”) and against each Fund’s benchmarks; (4) the costs of services and the benefits potentially derived by VALIC, the Sub-advisers and their respective affiliates; (5) a comparison of advisory fee schedules and performance with respect to other mutual funds and accounts with similar investment strategies and/or objectives to the Funds, as applicable, and which are advised or managed by VALIC or SAAMCo, an affiliated Sub-Adviser; (6) whether the Funds will benefit from possible economies of scale from engaging VALIC and the Sub-advisers; (7) the profitability of VALIC, the Sub-advisers and their respective affiliates, including amounts retained by VALIC after payment of sub-advisory fees; (8) the terms of the Advisory Contracts; (9) information regarding VALIC’s and the Sub-advisers’ compliance and regulatory history; and (10) information about the services VALIC provides in connection with the oversight of the Sub-advisers.

The Independent Trustees were separately represented by counsel that is independent of VALIC in connection with their consideration of approval of the Advisory Contracts. The matters discussed below were also considered separately by the Independent Trustees in an executive session at an in-person special meeting held on July 11-12, 2016 and executive sessions held during the August 2016 meeting during which such independent counsel provided guidance to the Independent Trustees. Following the July 11-12, 2016 meeting, the Independent Trustees submitted questions and requests for additional information to management, and considered management’s responses thereto at the August 2016 meeting. The continuation of all Advisory Contracts were approved at the August 2016 meeting for a one-year term beginning September 1, 2016 and ending August 31, 2017.

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of services to be provided to the Funds by VALIC and the Sub-advisers. The Board reviewed information provided by VALIC relating to its operations and personnel. The Board also took into account their knowledge of VALIC’s management and the quality of the performance of VALIC’s duties, through Board meetings, discussions and reports during the preceding year and through VALIC’s long history of service to VC II. The Board considered that VALIC is responsible for the management of the day-to-day operations of VC II, including but not limited to, general supervision of and coordination of the services provided by the Sub-advisers, and is also responsible for monitoring and reviewing the activities of the Sub-advisers and other third-party service providers. The Board also noted that VALIC’s and the Sub-advisers’ management of VC II is subject to the oversight of the Board, and must be made in accordance with the investment objectives, policies and restrictions set forth in VC II’s prospectus and statement of additional information. The Board noted that VALIC monitors the performance of the Funds and from time-to-time recommends Sub-adviser changes and/or other changes designed to improve the performance of the Funds.

The Board noted that VALIC personnel meet on a regular basis to discuss the performance of VC II, as well as the positioning of the insurance products, employer-sponsored retirement plans and the Funds generally vis-à-vis competitors. The Board also considered VALIC’s financial condition and whether it had the financial wherewithal to provide the services under the Advisory Agreement with respect to each Fund. The Board also considered VALIC’s risk management processes.

With respect to the services provided by the Sub-advisers, the Board considered information provided to them regarding the services provided by each Sub-adviser, including information presented throughout the previous year. The Board noted that each Sub-adviser (i) manages the investment and reinvestment of all of, or to the extent applicable, a portion of, the assets of the Funds including, for example, the evaluation of pertinent economic, statistical, financial, and other data; (ii) formulates and implements an investment program on behalf of the Funds; (iii) maintains a trading desk and places orders for the purchase and sale of portfolio investments selected by the Sub-adviser (or arranges for any other entity to provide a trading desk and to place orders with brokers and dealers selected by the Sub-adviser, subject to the Sub-adviser’s control, direction, and supervision, which may include brokers or dealers (including futures commission merchants) affiliated with the Sub-adviser, subject to applicable law; and (iv) renders regular reports to VALIC and to officers and the Boards concerning their discharge of the foregoing responsibilities. The Board reviewed each Sub-adviser’s history and investment experience as well as information regarding the qualifications, background and responsibilities of the Sub-adviser’s investment and compliance personnel who provide services to the Funds. The Board also took into account the financial condition of each Sub-adviser. The Board also reviewed each Sub-adviser’s brokerage practices and considered each Sub-adviser’s risk management processes.

The Board reviewed VALIC’s and SAAMCo’s compliance program and personnel. The Board noted that SAAMCo is an affiliated company of VALIC and serves as the administrator to the Funds, as well as sub-advises certain VALIC Company I and VC II Funds. The Board also considered VALIC’s and each Sub-adviser’s regulatory history, including information regarding whether it was currently involved in any regulatory actions or investigations as well as material litigation.

The Board concluded that the scope and quality of the advisory services provided by VALIC and the Sub-advisers were satisfactory and that there was a reasonable basis on which to conclude that each would provide a high quality of investment services to the Funds.

154

VALIC Company II

APPROVAL OF ADVISORY AGREEMENTS (unaudited) — (continued)

Fees and Expenses; Investment Performance. The Board received and reviewed information regarding each Fund’s total expenses, advisory and sub-advisory fees, and other expenses compared against the expenses and fees of the funds in its Expense Group/Universe and Subadvisory Expense Universe and, in some cases as noted below, the Subadvisory Expense Group. The Board noted that VALIC negotiates the sub-advisory fees with each of the unaffiliated Sub-advisers at arms-length. The Board also considered that the sub-advisory fees are paid by VALIC out of its advisory fees it receives from the Funds and is not paid by the Funds, and that sub-advisory fees may vary widely within the Subadvisory Expense Group/Universe for various reasons, including market pricing demands, existing relationships, experience and success, and individual client needs. The Board noted the affiliation of SAAMCo with VALIC, noting any potential conflicts of interest. The Board also noted that VALIC annually waives a portion of its advisory fee and/or reimburses the expenses of each of the Funds.

The Sub-advisers provided and the Board also considered expense information of comparable accounts managed by the Sub-advisers, as applicable, which accounts may include one or more of the following types of accounts: retail mutual funds, mutual funds sold through variable annuity and variable insurance products, and other institutional-type accounts.

The total expense information, advisory fee information, and sub-advisory fee information considered by the Board, among other fee and expense data, is summarized below. Expense ratio data included in the independent third-party report was based on unaudited data from the semi-annual report dated February 29, 2016.

The Board received and reviewed information prepared by management and by an independent third-party regarding the Funds’ investment performance compared against their benchmarks and their respective Performance Groups/Universes. The Board noted that performance information provided by the independent third-party was for the period ended April 30, 2016, and that the benchmark information provided by management was for the period ended June 30, 2016. The Board also noted that it regularly reviews the performance of the Funds throughout the year. The Board further noted that, although it monitors the Funds’ performance closely, it generally attaches more importance to performance over relatively long periods of time, typically three to five years. The Board considered the following expense and performance information in its evaluation of each Fund:

• Aggressive Growth Lifestyle Fund (PineBridge). The Fund’s total net expenses were equal to the median of its Expense Group and below the median of its Expense Universe. The Fund’s actual management fees were above the medians of its Expense Group/Universe. The Fund’s sub-advisory fees were above the median of its Subadvisory Expense Universe. The Board took into account management’s discussion of the Fund’s expenses. The Board noted that the expense limitation on total expenses was extended contractually through December 31, 2017.

The Fund underperformed its Broadridge peer index and the median of its Performance Universe for the one-year period and outperformed its Broadridge peer index and median of its Performance Universe for the three- and five-year periods. The Fund outperformed the median of its Performance Group for the one-, three- and five-year periods. The Fund underperformed its blended benchmark for the one-, three- and five-year periods.

• Capital Appreciation Fund (TBCAM). The Fund’s total net expenses were below the medians of its Expense Group/Universe. The Fund’s actual management fees were below the medians of its Expense Group/Universe. The Fund’s sub-advisory fees were below the medians of its Subadvisory Expense Group/Universe. The expense limitation on total expenses was also extended contractually through December 31, 2017.

The Fund outperformed its Broadridge peer index for the one-, three- and five-year periods. The Fund’s performance was above the medians of its Performance Group/Universe for the one-, three- and five-year periods. The Fund underperformed its benchmark for the one-, three- and five-year periods.

• Conservative Growth Lifestyle Fund (PineBridge). The Fund’s total net expenses were equal to the median of its Expense Group and below the median of its Expense Universe. The Fund’s actual management fees were above the medians of its Expense Group/Universe. The Fund’s sub-advisory fees were above the median of its Subadvisory Expense Universe. The Board took into account management’s discussion of the Fund’s expenses. The Board noted the expense limitation on total expenses was extended contractually through December 31, 2017.

The Fund underperformed its Broadridge peer index and the median of its Performance Universe for the one-year period and outperformed its Broadridge peer index and the median of its Performance Universe for the three- and five-year periods. The Fund underperformed the median of its Performance Group for the one- and three-year periods and outperformed the median of its Performance Group for the five-year period. The Fund underperformed its blended benchmark for the one-, three- and five-year periods.

• Core Bond Fund (PineBridge). The Fund’s total net expenses were below the medians of its Expense Group/Universe. The Fund’s actual management fees were below the medians of its Expense Group/Universe. The Fund’s sub-advisory fees were above the medians of its Subadvisory Expense Group/Universe. The expense limitation on total expenses was also extended contractually through December 31, 2017.

The Fund underperformed its Broadridge peer index and the medians of its Performance Group/Universe for the one- and three-year periods and outperformed its Broadridge peer index and the medians of its Performance Group/Universe for the five-year period. The Fund underperformed its benchmark for the one- and three-year periods and outperformed its benchmark for the five-year period.

• High Yield Bond Fund (Wellington). The Fund’s total net expenses were below the median of its Expense Group and above the median of its Expense Universe. The Fund’s actual management fees were below the median of its Expense Group and above the median of its Expense Universe. The Fund’s sub-advisory fees were above the median of its Subadvisory Expense Universe. The Board took into account management’s discussion of the Fund’s expenses. The Board noted that the expense limitation on total expenses was extended contractually through December 31, 2017.

The Fund outperformed its Broadridge peer index for the one-year period and underperformed its Broadridge peer index for the three- and five-year periods. The Fund’s performance was above the median of the Performance Group for the one-, three- and five-year periods, and the Fund’s performance was above the median of its Performance Universe for the one- and three-year periods and equal to the median of its Performance Universe for the five-year period. The Fund underperformed its benchmark for the one-, three- and five-year periods.

155

VALIC Company II

APPROVAL OF ADVISORY AGREEMENTS (unaudited) — (continued)

• International Opportunities Fund (MFS and Delaware Investments Fund Advisers). The Fund’s total net expenses were below the medians of its Expense Group/Universe. The Fund’s actual management fees were below the medians of its Expense Group/Universe. The Fund’s sub-advisory fees were above the medians of its Subadvisory Expense Group/Universe. The Board noted that the expense limitation on total expenses was extended contractually through December 31, 2017.

The Fund’s performance was above the median of its Performance Group for the one-year period and below the median of its Performance Group for the three-, and five-year periods. The Fund’s performance was above the median of its Performance Universe for the one-year period, equal to the median of its Performance Universe for the three-year period and below the median of its Performance Universe for the five-year period. The Fund outperformed its benchmark for the one-year period and underperformed its benchmark for the three- and five-year periods.

• Large-Cap Value Fund (Janus/Perkins and TBCAM). The Fund’s total net expenses were below the medians of its Expense Group/Universe. The Fund’s actual management fees were below the medians of its Expense Group/Universe. The Fund’s sub-advisory fees were below the medians of its Subadvisory Expense Group/Universe. The Board noted that the expense limitation on total expenses was also extended contractually through December 31, 2017.

The Fund outperformed its Broadridge peer index for the one- and three-year periods and underperformed its Broadridge peer index for the five-year period. The Fund’s performance was above the medians of its Performance Group/Universe for the one-, three- and five-year periods. The Fund underperformed its benchmark for the one-, three and five-year periods.

• Mid-Cap Growth Fund (Wells Capital). The Fund’s total net expenses were below the medians of its Expense Group/Universe. The Fund’s actual management fees were above the medians of its Expense Group/Universe. The Fund’s sub-advisory fees were above the median of its Subadvisory Expense Universe. The Board took into account management’s discussion of the Fund’s expenses. The Board noted that the expense limitation on total expenses was also extended contractually through December 31, 2017.

The Fund underperformed its Broadridge peer index for the one-, three- and five-year periods. The Fund underperformed the medians of its Performance Group/Universe for the one-, three- and five-year periods. The Fund underperformed its benchmark for the one-, three- and five-year periods. The Board took into account management’s discussion of the Fund’s performance, including potential steps that management is considering taking designed to improve the Fund’s performance.

• Mid-Cap Value Fund (Wellington and Robeco). The Fund’s total net expenses were above the median of its Expense Group and below the median of its Expense Universe. The Fund’s actual management fees were below the medians of its Expense Group/Universe. The Fund’s sub-advisory fees were below the medians of its Subadvisory Expense Group/Universe. The Board took into account management’s discussion of the Fund’s expenses. The Board noted that the expense limitation on total expenses was extended contractually through December 31, 2017.

The Fund underperformed its Broadridge peer index for the one-, three- and five-year periods. The Fund’s performance was equal to the median of its Performance Group for the one- and three-year periods and slightly below the median of its Performance Group for the five-year period. The Fund’s performance was below the median of its Performance Universe for the one-, three- and five-year periods. The Fund underperformed its benchmark for the one-, three- and five-year periods. The Board took into account management discussion of the Fund’s performance, including the fact that the Fund’s longer-term performance was attributable in part to a prior sub-adviser.

• Moderate Growth Lifestyle Fund (PineBridge). The Fund’s total net expenses were equal to the median of its Expense Group and below the median of its Expense Universe. The Fund’s actual management fees were above the medians of the Fund’s Expense Group/Universe. The Fund’s sub-advisory fees were above the median of its Subadvisory Expense Universe. The Board took into account management’s discussion of the Fund’s expenses. The Board noted that the expense limitation on total expenses was extended contractually through December 31, 2017.

The Fund underperformed its Broadridge peer index for the one-year period and outperformed its Broadridge peer index for the three- and five-year periods. The Fund’s performance was above the medians of its Performance Group for the one-, three- and five-year periods. The Fund’s performance was below the median of its Performance Universe for the one-year period and above the median of its Performance Universe for the three- and five-year periods. The Fund underperformed its blended benchmark for the one-, three- and five-year periods.

• Money Market II Fund (SAAMCo). The Fund’s total net expenses were above the median of its Expense Group and below the median of its Expense Universe. The Fund’s actual management fees were above the medians of its Expense Group/Universe. The Fund’s sub-advisory fees were below the median of its Subadvisory Expense Universe. The Board took into account management’s discussion of the Fund’s expenses, including the significant reimbursement of Fund expenses by VALIC. The Board also noted that the expense limitation on total expenses would be extended contractually through December 31, 2017.

The Fund’s performance was equal to the median of its Broadridge peer index for the one-year period and outperformed its Broadridge peer index for the three- and five-year periods. The Fund’s performance was equal to the medians of its Performance Universe/Group for the one-, three- and five-year periods. The Board took into account management’s discussion of the Fund’s performance and noted the relatively narrow range of returns in the Performance Group/Universe. The Fund underperformed its benchmark for the one-, three- and five-year periods.

• Small-Cap Growth Fund (JPMIM). The Fund’s total net expenses were below the median of its Expense Group and above the median of its Expense Universe. The Fund’s actual management fees were equal to the median of the Fund’s Expense Group and above the median of the Fund’s Expense Universe. The Fund’s sub-advisory fees were above the medians of its Subadvisory Expense Group/Universe. The Board took into account management’s discussion of the Fund’s expenses. The Board noted that the expense limitation on total expenses was extended contractually through December 31, 2017.

The Fund underperformed its Broadridge peer index for the one-, three- and five-year periods. The Fund underperformed its benchmark for the one-, three- and five-year periods. In addition, the Fund’s performance was below the median of its Performance Group for the one- and three-year periods and equal to the median of its Performance Group for the five-year period. The Fund’s performance was below the median of its Performance Universe for the one-, three- and five-year periods. The Board took into account management’s discussion of the Fund’s performance and management’s continued monitoring of the Fund.

156

VALIC Company II

APPROVAL OF ADVISORY AGREEMENTS (unaudited) — (continued)

• Small-Cap Value Fund (JPMIM and Wells Capital). The Fund’s total net expenses were below the medians of its Expense Group/Universe. The Fund’s actual management fees were below the medians of its Expense Group/Universe. The Fund’s sub-advisory fees were below the medians of its Subadvisory Expense Group/Universe. The expense limitation on total expenses was also extended contractually through December 31, 2017.

The Fund underperformed its Broadridge peer index for the one-, three- and five-year periods. The Fund’s performance was below the medians of its Performance Group/Universe for the one-, three- and five-year periods. The Fund underperformed its benchmark for the one- and five-year periods and outperformed its benchmark for the three-year period. The Board took into account management’s discussion of the Fund’s performance and management’s continued monitoring of the Fund.

• Socially Responsible Fund (SAAMCo). The Fund’s total net expenses were below the medians of its Expense Group/Universe. The Fund’s actual management fees were below the medians of its Expense Group/Universe. The Fund’s sub-advisory fees were also below the medians of its Subadvisory Expense Group/Universe. The expense limitation on total expenses was also extended contractually through December 31, 2017.

The Fund outperformed its Broadridge peer index for the one-, three- and five-year periods. The Fund’s performance was above the medians of its Performance Group/Universe for the one-, three- and five-year periods. The Fund underperformed its benchmark for the one-year period and outperformed its benchmark for the three- and five-year periods.

• Strategic Bond Fund (PineBridge). The Fund’s total net expenses were below the medians of its Expense Group/Universe. The Fund’s actual management fees were below the medians of the Fund’s Expense Group/Universe. The Fund’s sub-advisory fees were above the medians of its Subadvisory Expense Group/Universe. The Board noted that the expense limitation on total expenses was extended contractually through December 31, 2017.

The Fund underperformed its Broadridge peer index for the one-year period and outperformed its Broadridge peer index for the three- and five-year periods. The Fund’s performance was below the median of its Performance Group for the one-year period, above the median for the three-year period and equal to the median for the five-year period. the Fund’s performance was below the median of its Performance Universe for the one-year period and above the median of its Performance Universe for the three- and five-year periods. The Fund underperformed its benchmark for the one- and three-year periods and outperformed its benchmark for the five-year period

The Board considered management’s discussion of each Fund’s expenses and performance and concluded that each Fund’s overall performance was satisfactory in light of the circumstances or was being appropriately addressed by management. The Board further concluded that the advisory fee and sub-advisory fee for each Fund are fair and reasonable in light of the usual and customary charges made for services of the same nature and quality and the other factors considered.

Cost of Services and Indirect Benefits/Profitability. The Board was provided information related to the cost of services and profits realized in connection with the Advisory Agreement. The Board considered the costs that are borne by the Funds. For its services, VALIC receives a fee, payable monthly from each Fund in an amount that is calculated as a percentage of the average daily net assets of the respective Fund.

The Board was previously apprised that VALIC generally reviews a number of factors in determining appropriate sub-advisory fee levels. Such factors may include a review of (1) style class peers primarily within the variable annuity and qualified plan universe; (2) key competitor analysis; (3) analysis of the strategies managed by the Sub-advisers; (4) product suitability; and (5) special considerations such as competitor sub-account characteristics, uniqueness of the product and prestige of the manager.

The Board considered that VALIC, or its affiliates, will receive benefits in addition to the advisory fee to be paid by the Funds, which include transfer agency fees, administrative services fees, and sub-advisory fees. The Board considered that the transfer agency fees are paid by the Funds for the provision of recordkeeping and shareholder services to contract owners and participants. The transfer agency services are provided at cost, and the payment for such services is allocated to each Fund based on the number of accounts serviced. The Board also noted that VC II pays SAAMCo, an affiliate of VALIC, an annual fee based on each Fund’s average daily net assets, for the provision of certain accounting and administrative services. Out of the fee SAAMCo receives from the Funds, SAAMCo compensates VALIC for certain administrative services, and the Funds’ custodian, State Street Bank and Trust Company, for calculation of the daily net asset value. The Board also noted that SAAMCo receives sub-advisory fees for those Funds for which it serves as sub-adviser. The Board also considered that VC II pays VALIC an annual fee of 0.25% on average daily net assets of each Fund (other than the Lifestyle Funds) pursuant to a Shareholder Services Agreement.

The Board also considered that VALIC may exclude from its taxable income a portion of the ordinary dividends paid by underlying U.S. equities in the Funds to the same extent the Funds receive certain dividends with respect to shares of stock issued by domestic corporations, subject to applicable tax laws and regulations. In addition, it was noted that VALIC may receive foreign tax credits with respect to certain foreign securities held or to be held in certain Funds that benefit VALIC. These benefits can be material.

In considering the profitability to VALIC and its affiliates in connection with their relationship with the Funds, the Board reviewed information provided by VALIC setting forth the revenues and other benefits, both direct and indirect, received by VALIC and its affiliates attributable to managing each Fund, the cost of providing such services, and the resulting profitability to VALIC and its affiliates from these relationships. The Board also reviewed VALIC’s profitability on a Fund-by-Fund basis. The Board received and reviewed information prepared by VALIC that reflects an allocation of costs that result in a reasonable determination of profitability of VALIC and its affiliates, as adviser, as transfer agent and/or as shareholder servicing agent, as applicable. In addition, the Board considered the profitability of SAAMCo in its role as the administrator of the Funds and as sub-adviser to certain Funds. The Board concluded that the profitability to VALIC and its affiliates from their relationship with the Funds was reasonable.

In considering the profitability to the Sub-advisers in connection with their relationship to the Funds, the Trustees noted that the fees under the Sub-Advisory Agreements are paid by VALIC out of the advisory fees that VALIC receives under the Advisory Agreement. With respect to the unaffiliated Sub-advisers, the Board also relied on the ability of VALIC to negotiate the Sub-Advisory Agreements and the fees thereunder at arm’s length.

For each of the above reasons, the Trustees determined that the profitability to the Sub-advisers from their relationship with the Funds was not a material factor in their deliberations with respect to consideration of approval of the Investment Sub-Advisory Agreements.

157

VALIC Company II

APPROVAL OF ADVISORY AGREEMENTS (unaudited) — (continued)

Economies of Scale. The Board noted that the advisory fee rate and sub-advisory fee rates payable to VALIC and each of the Sub-advisers with respect to most of the Funds contain breakpoints, which allow the Funds to participate in any economies of scale. The Board also took into account management’s discussion of the Funds’ advisory fee and sub-advisory fee structure, including with respect to the Funds that do not currently have breakpoints. The Board also considered the effect of each Fund’s growth and size on its performance and fees, noting that if the Funds’ assets increase over time, the Funds may realize other economies of scale if assets increase proportionally more than expenses. The Board concluded that no changes to the advisory fee structure of the Funds were necessary.

For similar reasons as stated above with respect to the Sub-advisers’ profitability and the costs of their providing services, the Board concluded that the potential for economies of scale in the Sub-advisers’ management of the Funds are not a material factor to the approval of the Sub-advisory Agreements, although it was noted that most of the Funds have breakpoints at the sub-advisory fee level.

Terms of the Advisory Contracts. The Board reviewed the terms of the Advisory Contracts including the duties and responsibilities undertaken. The Board also reviewed the terms of payment for services rendered by VALIC and the Sub-advisers and noted that VALIC would compensate the Sub-advisers out of the advisory fees it receives from the Funds. The Board noted that the Sub-Advisory Agreements provide that each Sub-adviser will pay all of its own expenses in connection with the performance of their respective duties as well as the cost of maintaining the staff and personnel as necessary for it to perform its obligations. The Board also considered the termination and liability provisions of the Advisory Contracts and other terms contained therein. The Board concluded that the terms of each of the Advisory Contracts were reasonable.

Compliance. The Board reviewed VALIC’s and the Sub-advisers’ compliance personnel and regulatory history, including information whether it was currently involved in any regulatory actions or investigations. In addition, the Board reviewed information concerning each entities’ compliance staff that would be responsible for providing compliance functions on behalf of the Funds and concluded that there was no information provided that would have a material adverse effect on their abilities to provide services to the Funds.

Conclusions. In reaching its decision to approve the Advisory Contracts, the Board did not identify any single factor as being controlling, but based its recommendation on each of the factors it considered. Each Trustee may have contributed different weight to the various factors. Based upon the materials reviewed, the representations made and the considerations described above, and as part of their deliberations, the Board, including the Independent Trustees, concluded that VALIC and each Sub-adviser possess the capability and resources to perform the duties required of them under their respective Advisory Contracts.

Further, based upon its review of the Advisory Contracts, the materials provided, and the considerations described above, the Board, including the Independent Trustees, concluded that (1) the terms of the Advisory Contracts are reasonable, fair and in the best interests of each of the Funds and its respective shareholders, and (2) the fee rates payable under the Advisory Contracts are fair and reasonable in light of the usual and customary charges made for services of the same nature and quality.

158

VALIC Company II

TRUSTEES AND OFFICERS INFORMATION — August 31, 2016 (unaudited)

Name, Age and Address*	Position Held With VALIC Complex	Term of Office and Length of Time Served		Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee(2)		Other Directorships Held by Trustee(3)
Independent Trustees
Thomas J. Brown Age: 70	Trustee		2005- Present	Retired.		49	Trustee, Virtus Series Fund (2011-Present).
Dr. Judith L. Craven Age: 70	Trustee		1998- Present	Retired.		77	Director, A.G. Belo Corporation, a media company (1992-2014); Director SYSCO Corporation, a food marketing and distribution company (1996-Present). Director, Luby’s Restaurant Inc. a restaurant chain (1998-Present); Director, Hilton Hotel (1998-2011).
William F. Devin Age: 77	Chairman and Trustee		2001- Present	Retired.		77	Director, Boston Options Exchange (2001-2011).
Dr. Timothy J. Ebner Age: 67	Trustee		1998- Present	Professor and Head, Department of Neuroscience Medical School (1980-Present), and Visscher Chair of Physiology, University of Minnesota (1999-2013); Scientific Director, Society for Research on the Cerabellum (2008-Present). President-Elect, Association of Medical School Neuroscience Department Chairpersons (2012-2014).		49	Trustee, Minnesota Medical Foundation (2003-Present).
Judge Gustavo E. Gonzales, Jr. Age: 76	Trustee		1998- Present	Attorney At Law, Criminal Defense and General Practice (2004-Present); and Retired, Municipal Court Judge, City of Dallas, TX, trial court-criminal jurisdiction (since 2004).		49	None.
Kenneth J. Lavery Age: 66	Trustee		2001- Present	Retired; Vice President, Massachusetts Capital Resources Co. (1982-2013).		49	None.
Dr. John E. Maupin, Jr. Age: 69	Trustee		1998- Present	Retired; President, Morehouse School of Medicine, Atlanta Georgia (2006-2014).		49	Director, LifePoint Hospitals, Inc., hospital management (1999-Present); Director, HealthSouth, Corporation, rehabilitation health care services (2004-Present); Director, Regions Financial, Corp. bank holding company (2007-Present).
Interested Directors
Peter A. Harbeck(1) Age: 62	Trustee		2001- Present	President, CEO, and Director, SAAMCo (1995-Present), Director, AIG Capital Services, Inc. (“ACS”) (1993-Present); and Chairman, President and CEO, Advisor Group, Inc. (2004-2016).		140	None.
Officers
John T. Genoy Age: 47	President and Principal Executive Officer		2014- Present	Chief Financial Officer (2002-Present), Senior Vice President, (2004-Present) and Chief Operating Officer (2006-Present) and Director (2014-Present), SAAMCo.		N/A	N/A
John Packs Age: 60	Vice President and Senior Investment Officer		2001- Present	Senior Investment Officer, VALIC (2001-2013). Senior Vice President, SAAMCo (2008-Present).		N/A	N/A

159

VALIC Company II

TRUSTEES AND OFFICERS INFORMATION — August 31, 2016 (unaudited) — (continued)

Name, Age and Address*	Position Held With VALIC Complex	Term of Office and Length of Time Served		Principal Occupation(s) During Past 5 Years	Number of Funds in Fund Complex Overseen by Trustee(2)		Other Directorships Held by Trustee(3)
Officers
Gregory R. Kingston Age: 50	Treasurer and Principal Financial Officer		2000- Present	Vice President (2001-2014) and Head of Mutual Fund Administration, SAAMCo (2014-Present).		N/A	N/A
Kathleen D. Fuentes Age: 47	Vice President, Chief Legal Officer and Secretary		2015- Present	Vice President and Deputy General Counsel, SAAMCo (2006-Present).		N/A	N/A
Gregory N. Bressler Age: 49	Vice President		2005- Present	Senior Vice President, General Counsel and Assistant Secretary (2005-Present), SAAMCo.		N/A	N/A
Matthew J. Hackethal Age: 44	Acting Chief Compliance Officer; Anti-Money Laundering (“AML”) Compliance Officer		2007- Present	Acting Chief Compliance Officer (2016-Present), Vice President and Chief Compliance Officer (2006-Present), SAAMCo; AML Compliance Officer, SunAmerica Fund Complex (2006-Present).		N/A	N/A
Thomas M. Ward Age: 49	Vice President		2008- Present	Vice President (2009-Present), VALIC; and Vice President (2009-Present), VALIC Financial Advisers, Inc.		N/A	N/A
Shawn Parry Age: 44	Vice President and Assistant Treasurer		2014- Present	Vice President (2014-Present) and Assistant Vice President (2010-2014), SAAMCo.		N/A	N/A
Donna M. McManus Age: 55	Vice President and Assistant Treasurer		2014- Present	Vice President, SAAMCo (2014-Present); Managing Director, BNY Mellon (2009- 2014).		N/A	N/A

* The business address for each Trustee and Officer is 2929 Allen Parkway, Houston, TX, 77019.

(1) Interested Trustee, as defined within the Investment Company Act of 1940 (the “1940 Act”), because of current employment with SAAMCo, an affiliated company with VALIC.

(2) The “Fund Complex” consists of all registered investment company portfolios for which VALIC or an affiliated person of VALIC serves as investment adviser or administrator. The “Fund Complex” includes the SunAmerica Specialty Series (7 funds), SunAmerica Equity Funds (2 funds), SunAmerica Income Funds (3 funds), SunAmerica Money Market Funds, Inc. (1 fund), SunAmerica Senior Floating Rate Fund, Inc. (1 fund), SunAmerica Series, Inc. (6 portfolios), Anchor Series Trust (8 portfolios), Seasons Series Trust (20 portfolios), SunAmerica Series Trust (43 portfolios), VALIC Company I (34 funds) and VALIC Company II (15 funds).

(3) Directorships of companies required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e. “public companies”) or other investment companies registered under the 1940 Act.

Additional Information concerning the Trustees and Officers is contained in the Statement of Additional Information and is available without charge by calling 1-800-448-2542.

160

VALIC Company II

SHAREHOLDERS TAX INFORMATION — August 31, 2016 (unaudited)

Certain tax information regarding the VALIC Company II is required to be provided to the shareholders based upon each Fund’s income and capital gain distributions for the taxable year ended August 31, 2016.

During the year ended August 31, 2016, the Funds paid the following long-term capital gains along with the percentage of ordinary income dividends that qualified for the 70% dividends received deductions for corporations:

Fund	Net Long-Term Capital Gains		Foreign Tax  Credit*		Foreign Source  Income		Qualifying % for the 70% Dividends Received Deduction
Aggressive Growth Lifestyle	$	34,330,762	$	184,036	$	2,561,157		16.49	%
Capital Appreciation		7,803,191		—		—		100.00
Conservative Growth Lifestyle		11,963,320		88,301		1,232,678		5.07
Core Bond		—		—		—		0.04
High Yield Bond		—		—		—		—
International Opportunities		—		673,112		10,634,073		0.16
Large Cap Value		—		—		—		100.00
Mid Cap Growth		9,306,137		—		—		—
Mid Cap Value		130,705,432		—		—		100.00
Moderate Growth Lifestyle		41,294,498		250,679		3,530,647		11.69
Money Market II		—		—		—		—
Small Cap Growth		9,838,071		—		—		100.00
Small Cap Value		52,562,489		—		—		54.81
Socially Responsible		45,692,358		—		—		100.00
Strategic Bond		917,775		—		—		0.18

* The Funds make an election under the Internal Revenue Code Section 853 to pass through foreign taxes paid to the shareholders.

161

VALIC Company II

COMPARISONS: FUNDS VS. INDEXES (unaudited)

In the following pages, we have included graphs that compare each Fund’s performance with certain market indices. These graphs show the hypothetical growth of a $10,000 investment in each Fund versus the same $10,000 investment in comparable market indices. Descriptions of these market indices are provided below the individual graphs. It is important to note that the VC II Funds are professionally managed mutual funds while the indices are not available for investment and are unmanaged.

Please note that the graphs and tables that accompany the following investment comments include all fund expenses, but do not reflect the charges imposed by the variable annuity contracts or variable life insurance policies (collectively, the “Contracts”), qualifying employer-sponsored retirement plans (the “Plans”), or Individual Retirement Accounts (“IRAs”). All dividends are assumed to be reinvested. No expenses are deducted from the performance of the indices.

Investments in stocks and bonds are subject to risk, including stock market and interest rate fluctuations. Investments in non-U.S. stocks are subject to additional risks, including political and social instability, differing securities regulations and accounting standards, and limited public information. Mortgage-backed securities are subject to prepayment, which can result in reinvestment of principal at lower yields. Money market instruments generally offer stability and income, but an investment in these securities, like investments in other portfolios, are not guaranteed by the U.S. government or any other federal government entity. Lower rated high yield, high-risk securities generally involve more credit risk. These securities may also be subject to greater market price fluctuations than lower yielding, higher rated debt securities. The common stocks of medium-sized companies may be more volatile than those of larger, more established companies. Investing in real estate involves special risks, which may not be associated with investing in stocks, including possible declines in real estate values, adverse economic conditions, and changes in interest rates. Investments in small capitalization and emerging growth companies involve greater than average risk. Such securities may have limited marketability and the issuers may have limited product lines, markets and financial resources. The value of such investments may fluctuate more widely than investments in larger, more established companies. The technology industry can be significantly affected by obsolescence, short product cycles, falling prices and profits, and competition from new market participants. Funding choices that primarily invest in one sector are more volatile than those that diversify across many industry sectors and companies.

162

VALIC Company II Aggressive Growth Lifestyle Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

A discussion with PineBridge Investments, LLC

For the twelve-month period ended August 31, 2016, the Aggressive Growth Lifestyle Fund returned 7.53%, compared to 12.55% for the S&P 500^® Index and 9.25% for the Fund’s Blended Index. The blended index is comprised of 54% Russell 3000 Index, 13% MSCI EAFE Index (net), 25% Bloomberg Barclays Aggregate Bond Index, and 8% FTSE/EPRA NAREIT Global Real Estate Index.

The Aggressive Growth Lifestyle Fund allocates its assets among a combination of the Funds of VCII and VALIC Company I. The Fund does not select specific sectors, securities, or countries and thus these factors do not influence performance. Rather, the key indicators of performance are asset allocation and manager selection.

Over the past twelve months, the Fund’s asset allocation was a negative contributor to performance. Manager selection was also a detractor from performance. The Fund began the twelve month period with an underweight to US equities, a significant overweight to international equities, a slight underweight to fixed income, and a slight underweight to global real estate. US equities exposure remained fairly constant, with a slight increase during the latter half of the period. In the same period, international equities exposure remained fairly constant until the last three months of the period, when exposure was reduced. Real estate exposure increased to a modest overweight, and increased further the last two months of the period. Finally, fixed income exposure became more of an underweight as the period progressed, with the lowest exposure during the March-May 2016 timeframe. The twelve month period closed with an underweight to US equities, an overweight to both international equities and global real estate, and a modest underweight to fixed income.

163

VALIC Company II Aggressive Growth Lifestyle Fund

COMPARISON: FUND VS. INDEX (unaudited) — (continued)

For the year ended August 31, 2016, the Aggressive Growth Lifestyle Fund returned 7.53% compared to 12.55% for the S&P 500^® Index and 9.25% for the Blended Index.

* 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 Fund’s Blended Index consists of the Russell 3000^® Index (54%), MSCI EAFE Index (net) (13%), the Bloomberg Barclays U.S. Aggregate Bond Index (25%) and the FTSE/EPRA NAREIT Developed Index (8%).

*** 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 US & Canada. The Index consists of 22 developed market country indices. The net index approximates the minimum possible dividend reinvestment and assumes that the dividend is reinvested after the deduction of withholding tax, applying the rate to non-resident individuals who do not benefit from double taxation treaties.

**** 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. Effective August 24, 2016, the name of the Barclays U.S. Aggregate Bond Index was changed to Bloomberg Barclays U.S. Aggregate Bond Index.

† The Russell 3000^® Index follows the 3,000 largest U.S. companies, based on total market capitalization.

†† The FTSE EPRA/NAREIT Developed Index is a global market capitalization weighted index composed of listed real estate securities in the North American, European and Asian real estate markets.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
7.53%	9.30%	6.42%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

164

VALIC Company II Capital Appreciation Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

A discussion with The Boston Company Asset Management, LLC

The Capital Appreciation Fund posted a return of 8.33% for the twelve-month period ended August 31, 2016, compared to a return of 10.54% for the Russell 1000^® Growth Index.

The Fund’s underperformance relative to the benchmark was primarily driven by the overall negative impact of sector allocation across most sectors. Stock selection was additive for the period.

An underweight allocation within both materials and consumer staples detracted most from overall results. The remaining sectors were either flat or slightly negative.

The bottom performing names for the Fund included; Lululemon Athletica Inc., Apple Inc, and Biogen Inc.

The largest contributors to performance, in terms of stock selection, were within the consumer discretionary and industrials sectors.

The top performing names in the Fund included; Ulta Salon Cosmetics & Fragrance, Inc., Raytheon Co. and not holding Gilead Sciences, Inc. (held in the benchmark).

For the year ended August 31, 2016, the Capital Appreciation Fund returned 8.33% compared to 10.54% for the Russell 1000^® Growth Index.

* The Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
8.33%	13.97%	7.52%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

165

VALIC Company II Conservative Growth Lifestyle Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

A discussion with PineBridge Investments, LLC

For the twelve-month period ended August 31, 2016, the Conservative Growth Lifestyle Fund returned 6.19%, compared to 12.55% for the S&P 500^® Index and 7.35% for the Fund’s Blended Index. The blended index is comprised of 24% Russell 3000 Index, 8% MSCI EAFE Index (net), 65% Bloomberg Barclays Aggregate Bond Index, and 3% FTSE/EPRA NAREIT Global Real Estate Index.

The Conservative Growth Lifestyle Fund allocates its assets among a combination of the Funds of VCII and VALIC Company I. The Fund does not select specific sectors, securities, or countries and thus these factors do not influence performance. Rather, the key indicators of performance are asset allocation and manager selection.

Over the past twelve months, the Fund’s asset allocation was a negative contributor to performance. Manager selection was also a detractor from performance. The Fund began the twelve month period with a large underweight to US equities, a significant overweight to international equities, an underweight to fixed income, and a slight overweight to global real estate. US equities exposure was further reduced in the beginning of the twelve-month period, with its low point in the December 2015-April 2016 timeframe. After that, US equities exposure increased and remained higher throughout the remainder of the period. In the same period, international equities exposure increased slightly, but tapered off significantly the last two months of the period. Real estate exposure increased during the period, and remained overweight at the end of the period. Finally, fixed income exposure dipped modestly in the October-November time frame, but later increased and stayed at a higher level throughout the remainder of the period. The twelve month period closed with an underweight to US equities, an overweight to both international equities and global real estate, and a modest overweight to fixed income.

166

VALIC Company II Conservative Growth Lifestyle Fund

COMPARISON: FUND VS. INDEX (unaudited) — (continued)

For the year ended August 31, 2016, the Conservative Growth Lifestyle Fund returned 6.19% compared to 12.55% for the S&P 500^® Index and 7.35% for the Blended Index.

* 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 Fund’s Blended Index consists of the Russell 3000^® Index (24%), MSCI EAFE Index (net) (8%), the Bloomberg Barclays U.S. Aggregate Bond Index (65%) and the FTSE EPRA/NAREIT Developed Index (3%).

*** 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 US & Canada. The Index consists of 22 developed market country indices. The net index approximates the minimum possible dividend reinvestment and assumes that the dividend is reinvested after the deduction of withholding tax, applying the rate to non-resident individuals who do not benefit from double taxation treaties.

**** 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. Effective August 24, 2016, the name of the Barclays U.S. Aggregate Bond Index was changed to Bloomberg Barclays U.S. Aggregate Bond Index.

† The Russell 3000^® Index follows the 3,000 largest U.S. companies, based on total market capitalization.

†† The FTSE EPRA/NAREIT Developed Index is a global market capitalization weighted index composed of listed real estate securities in the North American, European and Asian real estate markets.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
6.19%	6.32%	5.85%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

167

VALIC Company II Core Bond Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

A discussion with PineBridge Investments, LLC

The Core Bond Fund posted a return of 5.78% for the twelve-month period ended August 31, 2016, compared to a return of 5.97% for the Bloomberg Barclays U.S. Aggregate Bond Index.

Sector selection benefited the portfolio over the course of the year. An underweight allocation to treasuries, and overweights in industrial and financial corporate credit were the largest positive contributors. An overweight in agency MBS detracted from overall returns.

Security selection was in line with the index during the period. Selections made within industrials were the largest contributors. Selections within government related local authority were the largest detractors.

The Fund’s longer duration position versus the benchmark and overweight to the longer end of the yield curve contributed to returns during the year as longer term interest rates declined. The Fund’s higher yield position versus its benchmark also contributed to performance.

Top individual contributors included Sprint Corp 7.25% due 9/15/2021, First Niagara Financial 7.25% due 12/15/2021, and Arcelor Mittal 7.25% due 2/25/2022.

Top individual detractors included FNMA 4.00% due 12/01/2043, Sprint Corp 7.63% due 2/15/2025 and FNMA 2.50% due 4/30/2030.

For the year ended August 31, 2016, the Core Bond Fund returned 5.78% compared to 5.97% for the Bloomberg Barclays U.S. Aggregate Bond Index.

* 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. Effective August 24, 2016, the name of the Barclays U.S. Aggregate Bond Index was changed to Bloomberg Barclays U.S. Aggregate Bond Index.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
5.78%	3.74%	4.89%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

168

VALIC Company II High Yield Bond Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

A discussion with Wellington Management Company LLP

The High Yield Bond Fund posted a return of 7.07% for the twelve-month period ended August 31, 2016, compared to its benchmark, the Citigroup High-Yield Market Index, which returned 8.79%.

At the end of August 31, 2016, the option adjusted spread of the Citigroup High Yield Market Index was 529 basis points over duration equivalent Treasuries, tightening 77 basis points during the twelve month period ended August 31, 2016. During the period, the best performing industries of the Citigroup High Yield Market Index were metals/mining, aerospace, and oil equipment. The worst performing industries were secondary oil and gas producers, pharmaceuticals, and environmental services.

Sector allocation detracted from relative performance of the Fund over the trailing 12-month period, while security selection was only slightly negative overall. Positive security selection in the energy, paper, and auto sectors contributed to benchmark relative performance but was offset by poor security selection in the technology, metals and mining, and health care sectors. In terms of sector allocation, an underweight allocation to the metals and mining sector, as well as overweight positions in the health care and pharmaceuticals sectors detracted from relative performance. An underweight allocation to the energy and utilities sectors, as well as an overweight allocation to the technology sector aided relative performance.

During the period, CCC and below rated bonds greatly outperformed their higher quality peers. An underweight allocation to CCC and below rated bonds detracted from relative performance.

During the period, the Fund held warrants received as a result of debt reorganizations. The warrants contributed modestly to relative performance. The Fund also held Euro currency forwards during the period to hedge Euro based holdings. These holdings also contributed modestly to relative performance. Lastly, we utilized credit default swaps on a high yield index to tactically manage credit exposure at the overall portfolio level. These positions contributed to relative returns.

For the year ended August 31, 2016, the High Yield Bond Fund returned 7.07% compared to 8.79% for the Citigroup High-Yield Market Index.

* The Citigroup High-Yield Market Index measures the performance of below investment grade debt issued by corporations domiciled in the U.S or Canada. All of the bonds in such index are publicly placed, have a fixed coupon, and are nonconvertible.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
7.07%	6.44%	5.06%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

169

VALIC Company II International Opportunities Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

The International Opportunities Fund posted a return of 7.23% for the twelve-month period ended August 31, 2016, compared to a return of 5.41% for the MSCI EAFE Small Cap Index (net).

A discussion with Massachusetts Financial Services Company – regarding their portion of the Fund

For the twelve months ended August 31, 2016, stock selection in the financial services sector benefited results relative to the MSCI EAFE Small Cap Index. Holdings of commercial vehicle finance services provider Shriram Transport Finance aided relative returns.

Security selection in the special products & services sector also aided relative performance, led by the a position in distribution and outsourcing services provider Bunzl PLC and food services and facilities management company Sodexo SA.

The combination of stock selection and an underweight allocation to the energy sector and an overweight allocation to the consumer staples sector also boosted relative results. However, there were no individual stocks within either sector that were among the portfolio’s largest relative contributors during the period.

Elsewhere, the holdings of discount store operator Dollarama, Inc., precious metals exploration company Agnico Eagle Mines, Ltd, and precision test and measurement instruments supplier Chroma ATE, Inc., also boosted relative returns.

An underweight allocation to the leisure sector weighed on relative performance. Within this sector, positions in Paddy Power Betfair PLC and Whitbread PLC hurt relative performance.

Stocks in other sectors that were among the top relative detractors during the reporting period included Next PLC, Stagecoach Group PLC and Rathbone Brothers PLC.

A discussion with Delaware Investments Fund Advisers – regarding their portion of the Fund

Stock selection within information technology, materials and consumer discretionary contributed positively to performance over the time period. From a country perspective, Canada and China boosted performance. Italy and the United Kingdom helped drive performance as well. Key individual contributors included Sunny Optical Technology Group Co. Ltd., Aristocrat Leisure Ltd. and Start Today Co., Ltd.

Stock selection within healthcare detracted from performance during the period. From a country perspective, stock selection within Japan and Ireland weighed on performance during the period. Key individual detractors included Concordia International Corp., ICON Plc and Bellway PLC.

For the year ended August 31, 2016, the International Opportunities Fund returned 7.23% compared to 5.41% for the MSCI EAFE Small Cap Index (net).

* The MSCI EAFE Small Cap Index (net) is an unmanaged index considered representative of small-cap stocks of Europe, Australasia and the Far East. The net index approximates the minimum possible dividend reinvestment and assumes that the dividend is reinvested after the deduction of withholding tax, applying the rate to non-resident individuals who do not benefit from double taxation treaties.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
7.23%	6.71%	2.93%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

170

VALIC Company II Large Cap Value Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

The Large Cap Value Fund posted a return of 9.09% for the twelve-month period ended August 31, 2016, compared to a return of 12.92% for the Russell 1000^® Value Index.

A discussion with Janus Capital Management, LLC and Perkins Investment Management, LLC – regarding their portion of the Fund

Overall, stock selection was the primary contributor to the Fund’s underperformance. Stock selection in telecommunication services, energy, and industrials detracted the most from relative returns.

On the positive side, stock selection in the consumer discretionary and healthcare sectors were large contributors. Also, an overweight to the strong telecommunication services

sector partially offset the detracting stock selection in this sector.

The largest individual detractors were Anadarko Petroleum Corp., Novartis AG, and Citigroup, Inc. The leading individual contributors were Johnson & Johnson, Procter & Gamble Co., and Verizon Communications, Inc.

A discussion with The Boston Company Asset Management, LLC – regarding their portion of the Fund

Overall, both stock selection and sector allocation contributed to the Fund’s underperformance. Stock selection in financials and materials detracted significantly from relative performance. Another large detractor was an underweight to the utilities sector.

Positive stock selection in real estate provided a large contribution to performance, but an underweight to this sector was a detractor. Selection was also strong in information technology, and an overweight in the outperforming consumer staples sector helped relative performance.

Among individual positions, holdings in CF Industries Holdings, Inc. and Voya Financial, Inc., and lack of exposure to the strong performer General Electric Co. were large detractors. Some of the largest positive contributions were made by Applied Materials, Inc., Microchip Technology, Inc., and Bank of America Corp.

For the year ended August 31, 2016, the Large Cap Value Fund returned 9.09% as compared to 12.92% for the Russell 1000^® Value Index.

* The Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
9.09%	13.45%	4.75%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

171

VALIC Company II Mid Cap Growth Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

A discussion with Wells Capital Management Incorporated

The Mid Cap Growth Fund posted a return of 3.01% for the twelve-month period ended August 31, 2016, compared to a return of 7.00% for the Russell Midcap ^® Growth Index.

The Fund underperformed the benchmark for the period due to weak stock selection relative to the benchmark. Sector allocation was neutral for the period.

Weak selection the real estate, industrials and information technology sectors detracted from overall results.

The bottom performing names included; Tableau Software, Inc., Alliance Data Systems Corp., and Akamai Technologies, Inc.

Strong stock selection in the healthcare and financials sectors added the most to relative performance.

The top performing names included; Edwards Lifesciences Corp., DexCom, Inc., and Align Technology, Inc.

For the year ended August 31, 2016, the Mid Cap Growth Fund returned 3.01% compared to 7.00% for the Russell Midcap^® Growth Index.

* The Russell Midcap^® Growth Index measures the performance of those Russell Midcap^® companies with higher price-to-book ratios and high forecasted growth values. The stocks are also members of the Russell 1000^® Growth Index.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
3.01%	8.26%	5.61%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

172

VALIC Company II Mid Cap Value Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

The Mid Cap Value Fund posted a return of 9.62% for the twelve-month period ended August 31, 2016, compared to a return of 12.88% for the Russell Midcap^® Value Index.

A discussion with Wellington Management Company LLP - regarding their portion of the Fund

Overall, both stock selection and sector allocation contributed to the Fund’s underperformance. Stock selection in the consumer discretionary, information technology, and materials sectors detracted the most from relative returns.

On the positive side, selection in the energy, utilities, and consumer staples sectors added the most to relative performance.

Top individual relative detractors included Performance Sports Group, Verint Systems, and Norwegian Cruise Line. The largest relative contributors to performance included Ono Pharmaceutical, Silicon Motion Technology, and Ingredion Inc.

A discussion with Robeco Investment Management, Inc. d/b/a Boston Partners - regarding their portion of the Fund

Overall, stock selection was the primary contributor to the Fund’s outperformance versus the benchmark. Security selection in the healthcare, energy, and capital goods sectors provided large contributions to relative performance.

Larger detractors from relative returns included stock selection in technology and basic industries. An underweight to the strong-performing REITs sector also weighed on relative returns.

Among the largest individual contributors were Parsley Energy Inc., Huntington Ingalls Industries Inc., and Activision Blizzard, Inc. Some of the top detractors were Robert Half International Inc., Western Digital Corporation, and Marathon Petroleum Corporation.

For the year ended August 31, 2016, the Mid Cap Value Fund returned 9.62% compared to 12.88% for the Russell Midcap^® Value Index.

* The Russell Midcap^® Value Index measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap^® Value Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap value market. The index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap value market.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
9.62%	13.38%	6.91%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

173

VALIC Company II Moderate Growth Lifestyle Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

A discussion with PineBridge Investments, LLC

For the twelve-month period ended August 31, 2016, the Moderate Growth Lifestyle Fund returned 7.48%, compared to 12.55% for the S&P 500^® Index and 8.36% for the Fund’s Blended Index. The blended index is comprised of 40% Russell 3000 Index, 10% MSCI EAFE Index (net), 45% Bloomberg Barclays Aggregate Bond Index, and 5% FTSE/EPRA NAREIT Global Real Estate Index.

The Moderate Growth Lifestyle Fund allocates its assets among a combination of the Funds of VCII and VALIC Company I. The Fund does not select specific sectors, securities, or countries and thus these factors do not influence performance. Rather, the key indicators of performance are asset allocation and manager selection.

Over the past twelve months, the Fund’s manager selection was a negative contributor to performance. Asset allocation was a modest detractor. The Fund began the twelve month period with an underweight to US equities, a significant overweight to international equities, a modest underweight to fixed income, and an overweight to global real estate. US equities exposure remained fairly constant, with a slight increase during the last two months of the period. In the same period, international equities exposure also remained fairly constant until the last three months of the period, when exposure was reduced. Real estate exposure increased to a larger overweight, and increased further the last two months of the period. Finally, fixed income exposure became more of an underweight as the period progressed, with the lowest exposure during the February-March 2016 timeframe. The twelve month period closed with an underweight to US equities, an overweight to both international equities and global real estate, and an underweight to fixed income.

174

VALIC Company II Moderate Growth Lifestyle Fund

COMPARISON: FUND VS. INDEX (unaudited) — (continued)

For the year ended August 31, 2016, the Moderate Growth Lifestyle Fund returned 7.48% compared to 12.55% for the S&P 500^® Index and 8.36% for the Blended Index.

** The Blended Index consists of the Russell 3000^® Index (40%), MSCI EAFE Index (net) (10%), the Bloomberg Barclays U.S. Aggregate Bond Index (45%) and the FTSE EPRA/NAREIT Developed Index (5%).

*** 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 US & Canada. The Index consists of 22 developed market country indices. The net index approximates the minimum possible dividend reinvestment and assumes that the dividend is reinvested after the deduction of withholding tax, applying the rate to non-resident individuals who do not benefit from double taxation treaties.

**** 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. Effective August 24, 2016, the name of the Barclays U.S. Aggregate Bond Index was changed to Bloomberg Barclays U.S. Aggregate Bond Index.

† The Russell 3000^® Index follows the 3,000 largest U.S. companies, based on total market capitalization.

†† The FTSE EPRA/NAREIT Developed Index is a global market capitalization weighted index composed of listed real estate securities in the North American, European and Asian real estate markets.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
7.48%	8.22%	6.43%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

175

VALIC Company II Money Market II Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

A discussion with SunAmerica Asset Management, LLC

The Money Market II Fund posted a return of 0.01% for the twelve-month period ended August 31, 2016, compared to a return of 0.18% for the Citigroup 3 Month Treasury Bill Index.

Fund performance was mostly affected by historically low interest rates that persisted during the fiscal period ended August 31, 2016. The Citigroup 3 Month Treasury Bill Index yielded 0.18% ending August 31, 2016, up from 0.02% at the close of the prior- year period.

While money market yields were higher throughout the fiscal period, the Fund’s investment strategy helped provide current gross income while meeting its two primary objectives—liquidity and capital preservation. Interest rate risk was navigated by adjusting the Fund’s weighted average maturity as market conditions shifted. Potential credit risk was mitigated by buying high quality, creditworthy names.

More specifically, given the low yield environment that existed throughout the fiscal period, we employed a barbell investment strategy, with greater weightings in fixed-rate securities at the short-term end of the yield curve and in longer-dated floating-rate securities. This strategy enabled us to provide a cushion of liquidity in the near term, i.e. one-to-seven days, and to garner the relatively higher yield available from investments with longer-dated maturities, i.e. greater than 30 days.

Throughout the annual period, the Fund maintained a weighted average maturity below the 60-day maximum mandated by the SEC. Indeed, the Fund’s weighted average maturity had achieved a range between 23 to 55 days for most of the annual period. In the last months of the annual period, we kept constant the Fund’s weighted average maturity while maintaining the quality and liquidity of the portfolio. As of August 31, 2016, the Fund’s weighted average maturity stood at approximately 31 days.

Throughout the annual period, the Fund was focused primarily on investments in government agency securities and U.S. Treasury securities, with lesser allocations to shorter-term repurchase agreements, commercial paper and certificates of deposit.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
0.01%	0.01%	0.88%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

176

VALIC Company II Small Cap Growth Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

A discussion with J.P. Morgan Investment Management Inc.

The Small Cap Growth Fund posted a return of 4.40% for the twelve-month period ended August 31, 2016, compared to a return of 3.55% for the Russell 2000 Growth Index.

The Fund outperformed the benchmark for the period due to both strong stock selection and sector allocation.

From an allocation perspective, an overweight allocation to technology was the most additive. Strong stock selection within traditional growth sectors of technology and healthcare was the most additive to relative performance.

Top performing names for the Fund included; Inphi Corp., Veeva Systems, Inc., and Nevro Corp.

Stock selection in financial services, energy and consumer discretionary detracted from relative performance.

The bottom performing names included; Nimble Storage, Inc., Tailored Brands, Inc., and Acadia Healthcare Co., Inc.

For the year ended August 31, 2016, the Small Cap Growth Fund returned 4.40% compared to 3.55% for the Russell 2000^® Growth Index.

* The Russell 2000^® Growth Index measures the performance of those Russell 2000^® companies with higher price-to-book ratios and higher forecasted growth values.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
4.40%	12.47%	7.03%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

177

VALIC Company II Small Cap Value Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

The Small Cap Value Fund posted a return of 11.27% for the twelve-month period ended August 31, 2016, compared to a return of 13.80% for the Russell 2000^® Value Index.

A discussion with J.P. Morgan Investment Management Inc. – regarding their portion of the Fund

Overall, stock selection was the primary contributor to the Fund’s outperformance versus the benchmark. Strong stock selection in the industrial cyclical, finance, and media sectors were larger contributors to results.

Stock selection in the energy, pharmaceutical, and consumer cyclical sectors were among the larger detractors from performance.

At the individual stock level, positions in The Children’s Place, Quad/Graphics Inc., and Rovi Corp. (formerly Tivo Corp.) were larger contributors to performance. Larger individual detractors from performance included the portfolio’s positions in Stone Energy, Blucora Inc., and Seadrill Limited.

For the period, the Portfolio held a minor position in futures (usually less than 5%) to equitize an excess cash position and stay fully invested. Futures positions do not have a significant impact on the Portfolio’s performance.

A discussion with Wells Capital Management Incorporated – regarding their portion of the Fund

Overall, both stock selection and sector allocation contributed to the Fund’s underperformance. Stock selection in the financials and information technology sectors detracted the most value from performance relative to the Russell 2000 Value Index. An overweight to the poor-performing energy sector further hindered relative performance.

On the positive side, security selection in the energy, consumer staples, and healthcare sectors enhanced performance relative to the index.

Large individual detractors included Ocwen Financial Corp., Endurance International Group Holdings, Inc., and Pier 1 Imports, Inc. Positive individual contributors included Encana Corp., Treasury Wine Estates Ltd., and Westar Energy, Inc.

For the year ended August 31, 2016, the Small Cap Value Fund returned 11.27% compared to 13.80% for the Russell 2000^® Value Index.

* The Russell 2000^® Value Index measures the performance of those Russell 2000^® companies with lower price-to-book ratios and lower forecasted growth values.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
11.27%	11.63%	6.05%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

178

VALIC Company II Socially Responsible Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

A discussion with SunAmerica Asset Management, LLC

The Socially Responsible Fund posted a return of 12.16% for the twelve-month period ended August 31, 2016, compared to its benchmark, the S&P 500 Index, which returned 12.55%.

The Fund invests in the equity securities of U.S. companies that meet the Fund’s social criteria. The Fund’s social criteria includes, but is not limited to, eliminating companies that are significantly engaged in the manufacture or distribution of civilian firearms, military weapons or weapons delivery systems; the manufacture or distribution of alcoholic beverages or tobacco products; the operation of gambling-related businesses; and the production of nuclear energy.

The Fund benefited from overweight exposure and stock selection in the technology and financial sectors. In terms of positioning, not owning Apple Inc., Citigroup Inc., and Wells Fargo & Company proved advantageous. Security selection in the healthcare and consumer discretionary groups was also beneficial. Gains were offset, however, by security selection in the energy and utility groups, as well as a telecom underweight.

Among individual holdings, Microsoft Corp., Johnson & Johnson, Facebook, Inc., Class A, Amazon.com, Inc. and Procter & Gamble Co. assisted the Fund’s performance the most during the fiscal period. Stocks detracting performance included Allergan PLC, Gilead Sciences, Inc., Williams Companies, Inc., Goldman Sachs Group, Inc., and Kinder Morgan Inc.

The Fund utilizes stock index futures contracts to keep its cash position fully exposed to the market. Their impact on Fund performance was negligible.

For the year ended August 31, 2016, the Socially Responsible Fund returned 12.16% compared to 12.55% for the S&P 500^® Index.

* 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.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
12.16%	15.02%	7.70%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

179

VALIC Company II Strategic Bond Fund

COMPARISON: FUND VS. INDEX (unaudited)

MANAGEMENT OVERVIEW

A discussion with PineBridge Investments, LLC

The Strategic Bond Fund posted a return of 7.15% for the twelve-month period ended August 31, 2016, compared to its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, which returned 5.97%.

Sector selection contributed performance versus that of the benchmark index during the year. An underweight allocation to treasuries and overweight allocations to credit sectors including communications, basic industry, and consumer cyclicals had the most notable contributions during the period. These contributions more than offset the impact of an underweight allocation to local authority bonds and the weighting in cash.

Security selection contributed to performance versus that of the benchmark index during the year. Most notable contributions came from selections made among sovereign, communications and basic industry names. These contributions more than offset the impact of selections made among energy and consumer non-cyclical names.

Yield curve positioning detracted slightly from performance.

Top individual contributors included Brasil Telecom SA 9.75% due 9/15/2016, Sprint Corp 7.25% due 9/15/2021, and FMG Resources August 2006 9.75% due 3/01/2022.

Amongst the largest individual detractors were Pacific Drilling SA 5.38 % due 6/01/2020, Sprint Corp 7.13% due 6/15/2024 and Sprint Corp 7.63% due 2/15/2025.

Currency forwards were the only derivatives utilized during this period. Currency forwards were only used to hedge non-dollar positions and not for speculative purposes and contributed positively to the Fund’s total return.

For the year ended August 31, 2016, the Strategic Bond Fund returned 7.15% compared to 5.97% for the Bloomberg Barclays U.S. Aggregate Bond Index.

* 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. Effective August 24, 2016, the name of the Barclays U.S. Aggregate Bond Index was changed to Bloomberg Barclays U.S. Aggregate Bond Index.

Average Annual Total Return as of August 31, 2016
1 Year	5 Years	10 Years
7.15%	4.84%	5.43%

Past performance is not predictive of future performance. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted.

The Fund’s returns reflect investment management fees and other Fund expenses. Charges imposed by the Variable Contracts, Plans or IRAs that invest in the Fund are not included in the Fund’s returns.

Indices are not managed and an investor can not invest directly into an index.

180

VALIC Company II

SUPPLEMENTS TO PROSPECTUS (unaudited)

Filed under Rule 497(e)

Registration No. 333-53589

VALIC COMPANY II

MID CAP GROWTH FUND

(the “Fund”)

Supplement dated June 17, 2016 to the Fund’s

Prospectus dated January 1, 2016, as amended

Thomas Pence, CFA, has announced his intention to retire from Wells Capital Management Incorporated by September 30, 2016. He will continue to serve as a portfolio manager of the Fund through August 31, 2016. After August 31, 2016, all references to Thomas Pence, CFA, in the Fund’s prospectus are deleted in their entirety.

Please retain this supplement for future reference.

181

VALIC Company II

SUPPLEMENTS TO PROSPECTUS (unaudited) — (continued)

Filed under Rule 497(e)

Registration No. 333-53589

VALIC COMPANY II

SMALL CAP VALUE FUND

(the “Fund”)

Supplement dated October 18, 2016, to the Fund’s

Prospectus dated January 1, 2016, as amended

The following changes are effective as of September 23, 2016:

In the section entitled “Fund Summary: Small Cap Value Fund – Investment Adviser,” the portfolio manager disclosure with respect to Wells Capital Management Incorporated (f/k/a Metropolitan West Capital Management, LLC) (“WellsCap”) is deleted in its entirety and replaced with the following:

Portfolio Managers

Name	Portfolio Manager of the Portfolio Since		Title
Ann Miletti		2016		Managing Director and Lead Portfolio Manager

In the section entitled “Management – Investment Subadvisers,” the information with respect to Samir Sikka, the portfolio manager to the portion of the Fund sub-advised by WellsCap, is hereby deleted in its entirety and replaced with the following:

Ann Miletti is responsible for managing WellsCaps’ portion of the Small Cap Value Fund. Ms. Miletti joined WellsCap or one of its predecessor firms in 1991, where she currently serves as a Managing Director and Lead Portfolio Manager for the PMV Equity Team.

Capitalized terms used herein but not defined shall have the meanings assigned to them in the Prospectus.

Please retain this supplement for future reference.

182

VALIC Company II

SUPPLEMENTS TO PROSPECTUS (unaudited) — (continued)

Filed under Rule 497(e)

Registration No. 333-53589

VALIC COMPANY II

SMALL CAP VALUE FUND

(the “Fund”)

Supplement dated October 27, 2016, to the Fund’s

Prospectus dated January 1, 2016, as supplemented and amended to date

At the October 24-25, 2016 meeting of the Board of Trustees (the “Board”) of VALIC Company II, the Board approved the termination of the Investment Sub-Advisory Agreement between The Variable Annuity Life Insurance Company (“VALIC”) and Wells Capital Management Incorporated (f/k/a Metropolitan West Capital Management, LLC) (“WellsCap”) with respect to the Fund. It is currently expected that the portion of the Fund’s assets managed by WellsCap will be transitioned to J.P. Morgan Investment Management Inc. (“JPMorgan”), an existing sub-adviser to the Fund, on or about October 31, 2016. Upon the termination of WellsCap, JPMorgan will become the Fund’s sole sub-adviser and all reference to WellsCap with respect to the Fund will be deleted. In addition, the following changes to the Prospectus will become effective:

In the section entitled “Fund Summary: Small Cap Value Fund – Performance Information,” the second and third paragraphs are deleted in their entirety and replaced with the following:

SunAmerica Asset Management, LLC (“SAAMCo”) was a co-subadviser of the Fund from February 28, 2010, to December 14, 2012. From February 8, 2010, to October 28, 2016, Wells Capital Management Incorporated (f/k/a Metropolitan West Capital Management, LLC) (“WellsCap”) was a co-subadviser of the Fund. As of January 1, 2002, J.P. Morgan Investment Management Inc. (“JPMIM”) (and its predecessors) assumed management of the Fund. On October 29, 2016, JPMIM became the Fund’s sole subadviser.

In the section entitled “Additional Information About the Funds’ Investment Strategies and Risks,” the information with respect to the Fund is deleted in its entirety and replaced with the following:

Small Cap Value Fund

The subadviser invests in companies that are attractively valued relative to their peers, with conservative management teams, high quality earnings and strong momentum characteristics. Stocks that are deemed unattractive based on their value, quality or momentum characteristics become candidates for sell. The frequency with which the Fund buys and sells securities will vary from year to year, depending on market conditions.

The subadviser regularly uses exchange-traded futures to manage the Fund’s cash.

Although the Fund primarily invests in domestic issuers, the Fund is authorized to invest up to 25% of its assets in the securities of foreign issuers.

Please see the section titled “Investment Glossary-Investment Risks” for a discussion of the following Additional Risks of the Fund: Active Trading Risk, Foreign Investment Risk, Investment Company Risk and Derivatives Risk.

Capitalized terms used but not defined herein shall have the meanings assigned to them by the Prospectus.

Please retain this supplement for future reference.

183

VALIC Company II

BOARD OF TRUSTEES

Thomas J. Brown

Judith L. Craven

William F. Devin

Timothy J. Ebner

Gustavo E. Gonzales, Jr.

Peter A. Harbeck

Kenneth J. Lavery

John E. Maupin, Jr.

CUSTODIAN

State Street Bank and Trust Company

One Lincoln Street

Boston, Massachusetts 02110

INVESTMENT ADVISER

The Variable Annuity

Life Insurance Company (VALIC)

2929 Allen Parkway

Houston, Texas 77019

INVESTMENT SUBADVISERS

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

Robeco Investment Management, Inc. d/b/a Boston Partners

909 Third Avenue, 32nd Floor

New York, New York 10022

SunAmerica Asset Management, LLC

Haborside Financial Center

3200 Plaza 5

Jersey City, New Jersey 07311

The Boston Company Asset Management, LLC

BNY Mellon Center

201 Washington St.

Boston, Massachusetts 02108

Wellington Management Company LLP

280 Congress Street

Boston, Massachusetts 02210

Wells Capital Management Incorporated

525 Market St.

10th Floor

San Francisco, CA 94105

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

PricewaterhouseCoopers LLP

1201 Louisiana Street, Suite 2900

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

Daniel Subea,

Assistant Treasurer

Louis O. Ducote II,

Assistant Secretary

Shana L. Walker,

Assistant Secretary

Matthew J. Hackethal,

Acting Chief Compliance Officer, Anti-Money Laundering Compliance Officer

DISCLOSURE OF QUARTERLY FUND PORTFOLIO HOLDINGS

VC II is required to file its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission for its first and third fiscal quarters on Form N-Q. VC II’s Forms N-Q are available on the U.S. Securities and Exchange Commission’s website at www.sec.gov. You can also review and obtain copies of Forms N-Q at the U.S. Securities and Exchange Commission’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330).

VOTING PROXIES ON VALIC COMPANY II PORTFOLIO SECURITIES

A description of the policies and procedures that VC II uses to determine how to vote proxies related to securities held in the Fund’s portfolios, which is available in VC II’s Statement of Additional Information, may be obtained without charge upon request, by calling 800-448-2542. This information is also available from the EDGAR database on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.

PROXY VOTING RECORD ON VALIC COMPANY II PORTFOLIO SECURITIES

Information regarding how VC II voted proxies relating to securities held in the VC II Funds portfolios during the most recent twelve month period ended June 30, is available, once filed with the U.S. Securities and Exchange Commission without charge, upon request, by calling 800-448-2542 or on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.

This report is for the information of the shareholders and variable contract owners investing in VC II. It is authorized for distribution to other persons only when preceded or accompanied by an effective prospectus which contains information on how to purchase shares and other pertinent information.

If you would like further information about this material or products issued by VALIC or American General Life Insurance Company, please contact your financial professional.

184

VALIC Company II P.O. Box 3206 Houston, TX 77253-3206 PRST STD U.S. POSTAGE PAID LANCASTER, PA PERMIT NO. 1765

VC 11288 (08/2016) J74500

Item 2. Code of Ethics.

VALIC Company II (“the registrant”) has adopted a Code of Ethics applicable to its Principal Executive and Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002. During the fiscal year ended 2016, there were no reportable amendments, waivers, or implicit waivers to a provision of the Code of Ethics that applies to the registrant’s Principle Executive and Principal Accounting Officers.

Item 3. Audit Committee Financial Expert.

The registrant’s Board of Trustees has determined that Thomas J. Brown, the Chairman of the registrant’s Audit Committee, qualifies as an audit committee financial expert, as defined in instructions to Item 3(b) of Form N-CSR. Mr. Brown is considered to be “independent” for purposes of Item 3(a)(2) of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

(a) - (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:

	2015		2016
(a) Audit Fees	$	397,420	$	409,345
(b) Audit-Related Fees	$	0	$	0
(c) Tax Fees	$	0	$	0
(d) All Other Fees	$	0	$	0

Audit Fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the principal accountant in connection with statutory and regulatory filings.

Aggregate fees billed to the investment adviser and Adviser Affiliates (as defined below in Item 4(e)) that are required to be pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X for the last two fiscal years for services rendered by the registrant’s principal accountant were as follows:

	2015		2016
(b) Audit-Related Fees	$	0	$	0
(c) Tax Fees	$	0	$	0
(d) All Other Fees	$	236,770	$	401,110

All other fees are for professional services rendered by the registrant’s principal accountant for services associated with issuing a SSAE16 report and Third Party Assurance report.

(e)    (1) The registrant’s audit committee pre-approves all audit services provided by the registrant’s principal accountant for the registrant and all non-audit services provided by the registrant’s principal accountant for the

registrant, its investment adviser and any entity controlling, controlled by, or under common control with the investment adviser (“Adviser Affiliates”) that provides ongoing services to the registrant, if the engagement by the investment adviser or Adviser Affiliate relates directly to the operations and financial reporting of the registrant. The audit committee has not presently established any pre-approval policies and procedures that permit the pre-approval of the above services other than by the full audit committee. Certain de minimis exceptions are allowed for non-audit services in accordance with Rule 2-01(c)(7)(i)(C) of Regulation S-X as set forth in the registrant's audit committee charter.

(2) No services included in (b) - (d) above in connection with fees billed to the registrant or the investment adviser or Adviser Affiliates were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and Adviser Affiliates that provides ongoing services to the registrant for 2015 and 2016 were $297,640 and $426,045, respectively.

(h) Non-audit services rendered to the registrant’s investment adviser and any Adviser Affiliates that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X were considered by the registrant’s audit committee as to whether they were compatible with maintaining the principal accountant’s independence.

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 last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Code of Ethics applicable to its Principal Executive and Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.406.Code of Ethics.

(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.

(3) Not applicable.

(b) Certification pursuant to Rule 30a-2 (b) under the Investment Company Act of 1940 (17 CFR 270.30a-2 (a)) and Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

VALIC Company II
By:	/s/ John T. Genoy
	John T. Genoy
	President

Date: November 08, 2016

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: November 08, 2016

By:	/s/ Gregory R. Kingston
	Gregory R. Kingston
	Treasurer

Date: November 08, 2016