Home
High Excess Capital Yield and Sustainable Dividends

Voya Large Cap Value Fund Quarterly Commentary - 3Q25

Key Takeaways

Equity markets rebounded in the third quarter of 2025, recovering from April’s tariff-driven volatility and ending well above mid-year levels. Growth outperformed value, led by strong gains in technology and communication services, while consumer staples lagged, remaining the sole sector detractor, driven by early-quarter weakness. Easing inflation, selective rate cuts, and increased demand for safe-haven assets shaped cross-asset dynamics. Higher beta and deep value also participated meaningfully in the rally.

For the quarter ended September 30, 2025, the Fund underperformed the Russell 1000 Value Index the (Index) on a net asset value (NAV) basis due to unfavorable stock selection. Stock selection within the consumer staples, financials, and health care sectors detracted the most from performance. Conversely, the communication services, real estate, and consumer discretionary sectors contributed to performance.

As we enter the final stretch of the year, investors face persistent geopolitical tensions, policy uncertainty, and inflation risks. Market leadership is expanding beyond mega-cap stocks, creating opportunities in defensive and cyclical sectors. We aim to remain nimble amid ongoing macroeconomic and market uncertainty.

Actively managed large cap value strategy that relies on fundamental research to capture the benefits of high excess capital yield and sustainable dividends.

Portfolio review

U.S. equities posted significant gains for the quarter. The S&P 500 increased by 8.12%, while the Nasdaq Composite rose by 11.24%. Strong performance in technology and artificial intelligence-related stocks, along with a shift toward easing monetary policy drove the market higher. The technology and communication services sectors outperformed while consumer staples sector lagged. Small cap stocks beat large cap stocks, and growth outperformed value stocks.

During the quarter, U.S. corporate earnings significantly exceeded expectations and 3Q25 forecasts indicate continued strength. Meanwhile, the full impact from tariffs had not yet filtered through earnings, and trade negotiations were ongoing. In addition, the U.S. Federal Reserve cut rates in September following weaker labor data. The combination of strong earnings, ongoing trade talks, and the onset of a likely Fed easing cycle bolstered overall market sentiment during the quarter. 

For the quarter ended September 30, 2025, the Fund underperformed the Index on a NAV basis due to unfavorable stock selection. Stock selection within the consumer staples, financials, and health care sectors detracted the most from performance. Conversely, the communication services, real estate, and consumer discretionary sectors contributed to performance. 

At the individual stock level our overweight positions in Kenvue, Inc. (KVUE), Centene Corp. (CNC), and Globant SA (GLOB) detracted from performance the most. 

An overweight position in Kenvue, Inc. (KVUE) detracted from performance following the controversy around Tylenol and its alleged health risks. 

An overweight position in Centene Corp. (CNC) detracted from performance as CNC reported weaker-than-expected 2Q25 results. Earnings per share (EPS) came below expectations, driven by elevated Medical Loss Ratios (MLR) in both Medicaid and Affordable Care Act (ACA) segments. Additionally, the stock declined sharply after Centene withdrew its 2025 guidance, citing lower-than-anticipated enrollment in its Health Insurance Marketplace. 

An overweight position in Globant SA (GLOB) detracted from performance. While the company reported in-line 2Q25 results, it reduced its full-year outlook and 3Q25 guidance due to the downstream impact of Department of Government Efficiency (DOGE) on a large U.S. client. 

An overweight position in Warner Bros. Discovery, Inc. (WBD), owning a non-benchmark in AbbVie, Inc. (ABBV), and our position in combined shares of Alphabet Inc. (GOOGL) were the biggest individual contributors. 

Our overweight position in Warner Bros. Discovery, Inc. (WBD) contributed to performance. Shares surged on speculation that Paramount Skydance (PSKY) may pursue a full acquisition of WBD ahead of its planned corporate split. 

Owning a non-benchmark in AbbVie, Inc. (ABBV) contributed to performance. Shares rose following a strong earnings report, with growth in EPS and revenue supported by strength across its oncology, immunology, and neuroscience drug portfolios. 

Our position in the combined shares of Alphabet Inc. (GOOGL) contributed to performance this quarter, driven by strong 2Q25 results. Revenue growth was broad-based, with notable strength across Search, YouTube, and Cloud. Additionally, the announcement that Alphabet will not be required to sell Chrome, coupled with a regulatory shift acknowledging increased competition from artificial intelligence (AI), further supported the stock’s performance.

Current strategy and outlook

The U.S. economy navigates a complex landscape of interest rate changes, inflation concerns, and labor market dynamics. Due to the emerging signs of labor market softness, the Fed is expected to cut rates further. Solid economic data, strong corporate earnings, and easing monetary policy are boosting the attractiveness of U.S. assets, despite existing concerns.

Holdings detail

Companies mentioned in this report—percentage of Strategy investments, as of 09/30/25: Kenvue, Inc. 1.85%, Centene Corp. 0.85%, Globant SA 0.36%, Warner Bros. Discovery, Inc. 0.64%, AbbVie, Inc. 1.60% and Alphabet Inc. 3.71%, 0% indicates that the security is no longer in the portfolio. Portfolio holdings are subject to daily change.

Related Resources

Voya Large Cap Value Fund Fact Sheet

Tags:
Portfolio Manager Commentary
IM4896127

The Russell 1000 Index includes approximately 1000 of the largest capitalization securities within the float-adjusted, market-capitalization-weighted Russell 3000 Index. The Russell 1000 Value Index includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values. Index returns do not reflect fees, brokerage commissions, taxes or other expenses of investing. Investors cannot invest directly in an index.

All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. You could lose money on your investment and any of the following risks, among others, could affect investment performance. The following principal risks are presented in alphabetical order which does not imply order of importance or likelihood: Company; Convertible Securities; Credit; Currency; Dividend; Environmental, Social, and Governance (Equity); Foreign (Non-U.S.) Investments/ Developing and Emerging Markets; Interest Rate; Investment Model; Liquidity; Market; Market Capitalization; Market Disruption and Geopolitical; Mid-Capitalization Company; Other Investment Companies; Preferred Stocks; Real Estate Companies and Real Estate Investment Trusts; Securities Lending; Small-Capitalization Company; Value Investing. Investors should consult the Fund’s Prospectus and Statement of Additional Information for a more detailed discussion of the Fund’s risks.


The strategy is available as a mutual fund or variable portfolio. The mutual fund may be available to you as part of your employer sponsored retirement plan. There may be additional plan level fees resulting in personal performance that varies from stated performance. Please call your benefits office for more information.Variable annuities and group annuities are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59½, an IRS 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you. All guarantees are based on the financial strength and claims paying ability of the issuing insurance company, who is solely responsible for all obligations under its policies. Insurance products, annuities and funding agreements issued by Voya Retirement Insurance and Annuity Company (“VRIAC”), One Orange Way, Windsor, CT 06095, which is solely responsible for meeting its obligations. Plan administrative services provided by VRIAC or Voya Institutional Plan Services, LLC (“VIPS”). Securities distributed by or offered through Voya Financial Partners, LLC (“VFP”) (member SIPC) or other broker-dealers with which it has a selling agreement. Only Voya Retirement Insurance and Annuity Company is admitted and can issue products in the state of New York.


This commentary has been prepared by Voya Investment Management for informational purposes. Nothing contained herein should be construed as (i) an offer to sell or solicitation of an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Any opinions expressed herein reflect our judgment and are subject to change. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) increasing levels of loan defaults (5) changes in laws and regulations and (6) changes in the policies of governments and/or regulatory authorities. 
The opinions, views and information expressed in this commentary regarding holdings are subject to change without notice. The information provided regarding holdings is not a recommendation to buy or sell any security. Portfolio holdings are fluid and are subject to daily change based on market conditions and other factors. Past Performance does not guarantee future results.
 

Top