Investment Commentary

Voya High Yield Bond Fund Quarterly Commentary - 3Q22

September 30, 2023

Key takeaways

  • The unusual environment of slower growth, high inflation and a tight labor market continued to drive market volatility in the third quarter of 2022. 
  • The Fund underperformed its benchmark, the Bloomberg U.S. High Yield 2% Issuer Constrained Index (the Index) for the quarter, on a net asset value (NAV) basis.
  • As always, our focus will be on security selection and finding pockets of value in an increasingly dispersed market.
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Voya Small Cap Growth Strategy Quarterly Commentary - 3Q22

October 1, 2022

Key takeaways

  • Financial markets around the globe saw intense selloffs in the third quarter.
  • Though all market capitalization segments declined, small cap stocks generally fared better than large or mid-cap stocks.
  • Growth styles fared better than value styles across the capitalization spectrum.
  • The Strategy underperformed its benchmark due to stock selection.
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Voya Large Cap Value Strategy Quarterly Commentary - 3Q22

September 30, 2022

Key Takeaways

  • Volatility remains the story in the market, as the third quarter saw a summer rally, followed by a sharp decline. US stocks ended the quarter lower as uncertainty around the Russia–Ukraine war still looms, and inflation remains a concern.
  • For the quarter ended September 30, 2022, the Strategy underperformed the Russell 1000 Value Index (the Index), primarily due to stock selection effects. The information technology and health care sectors contributed the most to performance.
  • The likelihood of a recession coming in 2023 seems to be increasing as inflation remains the top issue for the US Federal Reserve. The Fed has signaled that rate hikes will continue through the end of the year. Equity markets will likely remain volatile until Consumer Price Index (CPI) comes down and we see a pause or a pivot on rate increases.
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Voya Strategic Income Opportunities Fund Quarterly Commentary - 3Q22

September 30, 2022

Key Takeaways

  • Rates rose and bonds prices declined as the US Federal Reserve maintained a decidedly hawkish tone and inflation reports underscored the US central bank still has work to do.
  • The Strategy underperformed its benchmark, ICE Bank of America U.S. Dollar Three-Month Deposit Offered Rate Constant Maturity Index (the Index). Duration weighed on performance as rates continued to rise, while sector allocation and security selection added to performance.
  • Growth is slowing, with higher rates and persistent inflation cooling segments of the economy. These challenges are unlikely to cause a deep recession and the rise in nominal yields across sectors will present tactical opportunities.
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Voya Intermediate Bond Fund Quarterly Commentary - 3Q22

September 30, 2022

Key Takeaways

  • Rates rose and bonds prices declined as the US Federal Reserve maintained a decidedly hawkish tone and inflation reports underscored the US central bank still has work to do.
  • The Strategy outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index (the Index) on a net asset value (NAV) basis, with sector allocation, security selection and duration and yield curve decisions all contributing.
  • Growth is slowing, with higher rates and persistent inflation cooling segments of the economy. These challenges are unlikely to cause a deep recession and the rise in nominal yields across sectors will present tactical opportunities.
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Voya Securitized Credit Fund Quarterly Commentary - 3Q22

September 30, 2022

Key Takeaways

  • The unusual environment of slower growth, high inflation and a tight labor market continued to drive market volatility in the third quarter of 2022.
  • For the quarter, the fund outperformed its benchmark, the Bloomberg U.S. Securitized MBS/ABS/CMBS Index (the Index). Duration positioning and sector allocation contributed positively, while security selection detracted.
  • With a background of weaker global growth, we expect inflation to slowly decline in the months ahead, while the shelter component will keep inflation above the US Federal Reserve comfort zone well into 2023.
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Voya Floating Rate Fund Quarterly Commentary - 3Q22

September 30, 2022

Key Takeaways

  • The US loan market, as represented by the Morningstar® LSTA ® US Leveraged Loan Index (the Index), rallied in the first two months of 3Q22 before broad-based volatility weighed on returns in September.
  • The Class I shares of the Fund underperformed the Index as the portfolio was primarily impacted by selection and overweight to CCC rated loans, selection in single-B rated loans and selection in software at the sector level, which was primarily due to an overweight to Avaya Inc.
  • The macro outlook is expected to remain challenged in 4Q22, as risk asset valuations continue to be affected by tightening of financial conditions, earnings deceleration and the increasing prospects of a global recession.
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Voya Corporate Leaders® 100 Fund Quarterly Commentary - 3Q22

September 30, 2022

Key Takeaways

  • For the quarter ended September 30, 2022, the Voya Corporate Leaders 100 Fund (the Fund) underperformed its benchmark, the S&P 500 Index (the Index).
  • During the quarter, the Fund continued to follow its strict rules-based investment approach.
  • At the beginning of the quarter, the Fund held equal-weighted positions in the stocks of the S&P 100 Index (implying that each holding represented about 1% of the portfolio).
  • Over the course of the quarter, if the value of a security increased by more than 50%,* the position size was reduced to 1%, and if the value of a security decreased by more than 30%,* the position was eliminated.
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Voya Large-Cap Growth Fund Quarterly Commentary - 3Q22

September 30, 2022

Key Takeaways

  • Volatility remains the story in the market, as the third quarter saw a summer rally, followed by a sharp decline. US stocks ended the quarter lower as uncertainty around the Russia–Ukraine war still looms, and inflation remains a concern.
  • For the quarter, the Strategy outperformed its benchmark, the Russell 1000 Growth Index, on a net asset value (NAV) basis, due in part to favorable stock selection, particularly within the health care and information technology sectors.
  • The likelihood of a recession in 2023 seems to be increasing as inflation remains the top issue for the US Federal Reserve. The Fed has signaled that rate hikes will continue through the end of the year. Equity markets likely will remain volatile until the Consumer Price Index comes down and we see a pause or a pivot in rate increases.
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Voya MidCap Opportunities Strategy Quarterly Commentary - 3Q22

September 30, 2022

Key Takeaways:

  • Volatility remains the story in the market, as the third quarter saw a summer rally, followed by a sharp decline. US stocks ended the quarter lower as uncertainty around the Russia–Ukraine war still looms, and inflation remains a concern.
  • For the quarter, the strategy outperformed its benchmark, the Russell Midcap Growth Index (the Index), on a gross-of-fees basis, due in part to favorable stock selection, particularly within the information technology and industrial sectors.
  • The likelihood of a recession coming in 2023 seems to be increasing as inflation remains the top issue for the US Federal Reserve. The Fed has signaled that rate hikes will continue through the end of the year. Equity markets likely will remain volatile until the Consumer Price Index (CPI) comes down and we see a pause or a pivot on rate increases.
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