Common use of Excessive Trading Clause in Contracts

Excessive Trading. VALIC has a policy to discourage excessive trading and market timing. The Custodial Account is not designed to accommodate short-term trading or “market timing” organizations or individuals engaged in trading strategies that include programmed transfers, frequent transfers or transfers that are large in relation to the total assets of a Mutual Fund. These trading strategies may be disruptive to the Mutual Funds by diluting the value of the fund shares, negatively affecting investment strategies and increasing portfolio turnover. Excessive trading also raises fund expenses, such as recordkeeping and transaction costs, and ▇▇▇▇▇ fund performance.