Voya Corporate Leaders® 100 Fund Quarterly Commentary - 4Q25
A rules-based strategy designed to exploit market inefficiencies in a disciplined systematic manner.
Portfolio review
U.S. equity markets closed 4Q25 on a positive note, driven by moderating inflation and robust earnings. The S&P 500 Index advanced 2.66%, and the technology-heavy Nasdaq Composite gained 2.57%. The healthcare and communications services sectors led, while real estate and utilities sectors lagged. Large cap stocks beat small cap stocks, and value outperformed growth stocks.
U.S. bonds advanced during the quarter, with the Bloomberg U.S. Aggregate Bond Index returning 1.10% supported by moderating inflation and U.S. Federal Reserve easing. The 10-year U.S. Treasury yield rose and finished at 4.18%.
Over the reporting period, stock selection in financials, industrials, and health care contributed to performance. An overweight allocation to health care and underweight to information technology also contributed to performance. On an individual stock level an underweight to Microsoft Corp. and overweight positions in General Motors Co. and Advanced Micro Devices, Inc. contributed to performance.
By contrast, stock selection in communication services, materials, and consumer staples sectors detracted from performance. An overweight to consumer staples and an underweight to communication services detracted from performance. Among the largest individual detractors for the period were the underweight positions to the combined shares of Alphabet Inc. and Apple Inc., and not owning Micron Technology, Inc.
As of the end of the reporting period, the Fund’s largest sector overweight was to the health care sector, while the largest sector underweight was information technology. Sector exposures are purely a function of the strategy’s rules-based investment discipline and are not actively managed.
Current strategy and outlook
The U.S. economy enters 2026 with a foundation of resilience. We expect moderate growth supported by consumer spending and productivity gains, helped by lower rates. The Fed’s recent rate cut reflects heightened concern over labor market softening and confidence that tariff-driven inflation pressures will fade.
While the outlook suggests a soft landing with moderate growth and gradual disinflation, caution is warranted as geopolitical risks and policy uncertainty persist. In addition, broadening of the narrow market leadership beyond mega-cap growth, underpinned by artificial intelligence innovation and corporate investment should support market growth.
Holdings detail
Companies mentioned in this report—percentage of Fund investments, as of 12/31/25: Microsoft Corp. 0.91%, General Motors Co. 1.29%, Advanced Micro Devices, Inc. 0.84%, Alphabet Inc. 1.25%, Apple Inc. 1.04%, and Micron Technology, Inc. 0.00%; 0% indicates that the security is no longer in the Fund. Portfolio holdings are subject to daily change.
*If a security is underperforming the S&P 500® Index and the S&P 500® Index is positive on an intra-quarter basis, the security will typically be sold when it declines by 30% or more, irrespective of the percentage difference versus the S&P 500® Index. If a security is underperforming the S&P 500® Index and the S&P 500® Index is negative on an intra-quarter basis, the security will typically be sold when it underperforms the S&P 500® Index by 30 percentage points or more. This change went into effect on 5/18/20.
Key Takeaways
For the quarter ended December 31, 2025, the Voya Corporate Leaders 100 Fund outperformed its benchmark on a net asset value (NAV) basis, 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.