May 1,
2022
Prospectus
•
Voya Balanced
Portfolio
Class/Ticker:
I/IBPIX;
S/IBPSX
•
Voya Global High
Dividend Low Volatility Portfolio
Class/Ticker:
ADV/IGHAX;
I/IIGZX S/IGHSX;
S2/IWTTX;
T/VGVTX
•
Voya Government
Money Market Portfolio1
Class/Ticker:
ADV/VMAXX;
I/IVMXX;
S/IMSXX;
S2/VMTXX
•
Voya Growth
and Income Portfolio
Class/Ticker:
ADV/IAVGX;
I/IIVGX;
S/ISVGX;
S2/IGISX
•
Voya Index
Plus LargeCap Portfolio2
Class/Ticker:
ADV/VIPAX;
I/IPLIX; S/IPLSX;
S2/IPLTX
•
Voya Index
Plus MidCap Portfolio2
Class/Ticker:
I/IPMIX;
S/IPMSX;
S2/AIMTX
•
Voya Index
Plus SmallCap Portfolio2
Class/Ticker:
I/IPSIX;
S/IPSSX;
S2/IPSTX
•
Voya Intermediate
Bond Portfolio
Class/Ticker:
ADV/IIBPX;
I/IPIIX;
S/IPISX;
S2/IIBTX
•
Voya Small
Company Portfolio
Class/Ticker:
ADV/IASCX;
I/IVCSX;
R6/VSPRX;
S/IVPSX
1 Class ADV
and Class S2 shares of the Portfolio are not currently offered.
2 Class S2
shares of the Portfolio are not currently offered.
Each
Portfolio's shares may be offered to insurance company separate accounts serving
as investment options under variable annuity contracts and
variable life insurance policies (“Variable Contracts”), qualified pension and
retirement plans (“Qualified Plans”), custodial accounts, and certain investment
advisers and their affiliates in connection with the creation or management of
the Portfolios, other investment companies, and other permitted
investors.
NOT ALL PORTFOLIOS MAY BE AVAILABLE IN ALL JURISDICTIONS, UNDER ALL VARIABLE CONTRACTS OR UNDER ALL QUALIFIED PLANS.
The U.S. Securities and Exchange Commission (“SEC”) has not approved or disapproved these securities nor has the SEC judged whether the information in this Prospectus is accurate or adequate. Any representation to the contrary is a criminal offense.
NOT ALL PORTFOLIOS MAY BE AVAILABLE IN ALL JURISDICTIONS, UNDER ALL VARIABLE CONTRACTS OR UNDER ALL QUALIFIED PLANS.
The U.S. Securities and Exchange Commission (“SEC”) has not approved or disapproved these securities nor has the SEC judged whether the information in this Prospectus is accurate or adequate. Any representation to the contrary is a criminal offense.
Voya Balanced
Portfolio
Investment
Objectives
The
Portfolio seeks total return consisting of capital appreciation (both realized
and unrealized) and current income; the secondary
investment
objective is long-term capital appreciation.
Fees
and Expenses of the Portfolio
The
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Portfolio. You
may pay other fees and expenses such as fees and expenses imposed under your
variable annuity contracts or variable life insurance policies (“Variable
Contract”) or a qualified pension or retirement plan (“Qualified Plan”), which
are not reflected in the tables and examples below. If these fees or
expenses were included in the table, the Portfolio’s expenses would be higher.
For more information on these charges, please refer to the documents governing
your Variable Contract or consult your plan administrator.
Annual
Portfolio Operating Expenses
Expenses you pay each year as a % of the value of your investment
Expenses you pay each year as a % of the value of your investment
|
Class |
|
I |
S |
|
Management
Fees |
% |
0.60 |
0.60 |
|
Distribution
and/or Shareholder Services (12b-1) Fees |
% |
None |
0.25 |
|
Other
Expenses |
% |
0.14 |
0.14 |
|
Acquired
Fund Fees and Expenses |
% |
0.04 |
0.04 |
|
Total
Annual Portfolio Operating Expenses1 |
% |
0.78 |
1.03 |
|
Waivers
and Reimbursements2 |
% |
(0.05) |
(0.05) |
|
Total
Annual Portfolio Operating Expenses after Waivers and
Reimbursements |
% |
0.73 |
0.98 |
1
Total Annual
Portfolio Operating Expenses shown may be higher than the Portfolio's ratio of
expenses to average net assets shown in the Financial Highlights, which reflects
the operating expenses of the Portfolio and does not include Acquired Fund Fees
and Expenses.
2
The adviser is contractually
obligated to limit expenses to 0.69% and 0.94% of Class I and Class S shares,
respectively, through May 1, 2023. The limitation does not
extend to interest, taxes, investment-related
costs, leverage expenses, extraordinary expenses, and Acquired Fund Fees and
Expenses. This limitation is subject to possible recoupment by the adviser
within 36 months of the waiver or reimbursement. Termination or modification of
this obligation requires approval by the Portfolio’s board.
Expense
Example
The
Example is intended to help you compare the cost of investing in shares of the
Portfolio with the costs of investing in other mutual funds.
The Example does not reflect expenses and charges which are, or may be, imposed
under your Variable Contract or Qualified Plan. The Example assumes that you
invest $10,000 in the Portfolio for the time periods indicated. The Example also
assumes that your investment had a 5% return each year and that the Portfolio's
operating expenses remain the same. The Example
reflects applicable expense limitation agreements and/or waivers in effect, if
any, for the one-year period and the
first year of the three-, five-, and ten-year periods. Although your
actual costs may be higher or lower, based on these
assumptions your costs would be:
|
Class |
|
|
1
Yr |
3
Yrs |
5
Yrs |
10
Yrs |
|
|
|
|
|
|
|
I |
|
$ |
75 |
244 |
428 |
961 |
|
|
|
|
|
|
|
S |
|
$ |
100 |
323 |
564 |
1,255 |
|
|
|
|
|
|
Portfolio
Turnover
The
Portfolio pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher transaction
costs. These costs, which are not reflected in Annual Portfolio Operating
Expenses or in the Expense Example, affect the Portfolio's
performance.
During the most recent fiscal year,
the Portfolio's portfolio turnover rate was 101% of the average value of its
portfolio.
Principal
Investment Strategies
The
Portfolio seeks to achieve its investment objectives by investing in a
diversified portfolio of various asset classes and investment
strategies managed by the sub-adviser (“Sub-Adviser”). The Portfolio may invest
in domestic and international securities, including emerging markets securities,
which may be denominated in foreign currencies or in the U.S. dollar. The
Portfolio may invest in sovereign debt, which is debt issued or guaranteed by
foreign government entities. The Portfolio may also invest in derivative
instruments including futures, swaps (including interest rate swaps, total
return swaps, and credit
1
Voya Balanced
Portfolio
default
swaps) and options, among others for different purposes, including hedging (to
seek to offset risks associated with an investment,
currency exposure or market conditions), to seek to enhance returns, to earn
income, or as a substitute for a position in an underlying asset.
The
Portfolio may also invest in other investment companies, including up to 30% of
its net assets in exchange-traded funds to gain exposure to
high yield bonds (“junk bonds”), emerging markets debt, and other securities to
make tactical asset allocations, minimize risk, and assist in managing cash. At
least fifteen underlying investment companies (including exchange-traded funds)
will be available for the Portfolio’s investment at all times and such
underlying investment companies may be changed at the Sub-Adviser’s discretion
without notice to shareholders.
Equity
Portion
Equity
securities in which the Portfolio may invest include, but are not limited to:
common stocks, preferred stocks, securities convertible into
common stocks, and depositary receipts. The Portfolio may invest in securities
of companies of any market capitalization. The Portfolio may invest in real
estate-related securities, including real estate investment trusts, and natural
resource/commodity securities. The Portfolio is a core product and may invest in
either “growth” securities, “value” securities, or both.
Fixed-Income
Portion
The fixed-income
securities in which the Portfolio may invest include, but are not limited to,
short-, intermediate-, and long-term bonds rated investment-grade;
international bonds; and high-yield bonds rated below investment-grade, commonly
known as “junk bonds;” and money market instruments. The Portfolio may also
invest in treasury inflation protected securities, asset-backed securities,
commercial and residential mortgage-backed securities, other securitized and
structured debt products (such as collateralized mortgage obligations), and
private placements.
While
the mix of equity and debt instruments will vary depending on the Sub-Adviser's
outlook on the markets, under normal circumstances no
more than 75% (and no less than 25%) of the Portfolio's total assets will be
invested in equity securities. The Sub-Adviser uses a proprietary asset
allocation strategy to determine the percentage of the Portfolio's net assets to
invest in each of the investment strategies and asset classes (“Target
Allocation”). The Target Allocation may be changed by the Sub-Adviser at any
time and actual allocations of the Portfolio's assets may deviate from the
Target Allocation. The Portfolio may be rebalanced periodically to return to the
Target Allocation.
In evaluating
investments for the Portfolio, the Sub-Adviser normally expects to take into
account environmental, social, or governance (“ESG”) factors, to
determine whether any or all of those factors might have a significant effect on
the performance, risks, or prospects of a company or issuer. The Sub-Adviser
intends to rely primarily on third-party evaluations of a company’s ESG standing
and/or on factors identified through its proprietary research as material to a
particular company or the industry in which it operates. The Sub-Adviser may
give environmental, social, and governance factors equal consideration or may
focus on one or more of those factors as it considers appropriate. The
Sub-Adviser may consider specific ESG metrics or a company’s progress or lack of
progress toward meeting ESG targets. ESG factors will be only one consideration
in the Sub-Adviser’s evaluation of any potential investment, and the effect, if
any, of ESG factors on the Sub-Adviser’s decision whether to invest in any case
will vary depending on the judgment of the Sub-Adviser.
The Portfolio
may lend portfolio securities on a short-term or long-term basis, up to
33 1∕3% of its total
assets.
Principal
Risks
You
could lose money on an investment in the Portfolio. Any of the
following risks, among others, could affect Portfolio performance or cause the
Portfolio to lose money or to underperform market averages of other
funds.
Asset
Allocation:
Investment
performance depends on the manager’s skill in allocating assets among the asset
classes in which the Portfolio invests and in choosing investments within those
asset classes. There is a risk that the manager may allocate assets or
investments to an asset class that underperforms compared to other asset classes
or investments.
Bank
Instruments:
Bank
instruments include certificates of deposit, fixed time deposits, bankers’
acceptances, and other debt and deposit-type obligations issued by banks.
Changes in economic, regulatory or political conditions, or other events that
affect the banking industry may have an adverse effect on bank instruments or
banking institutions that serve as counterparties in transactions with the
Portfolio.
Company:
The
price of a company’s stock could decline or underperform for many reasons
including, among others, poor management, financial problems, reduced demand for
company goods or services, regulatory fines and judgments, or business
challenges. If a company declares bankruptcy or becomes insolvent, its stock
could become worthless.
Convertible
Securities:
Convertible
securities are securities that are convertible into or exercisable for common
stocks at a stated price or rate. Convertible securities are subject to the
usual risks associated with debt instruments, such as interest rate and credit
risk. In addition, because convertible securities react to changes in the value
of the stocks into which they convert, they are subject to market
risk.
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Portfolio
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Credit:
The
price of a bond or other debt instrument is likely to fall if the issuer’s
actual or perceived financial health deteriorates, whether because of broad
economic or issuer-specific reasons. In certain cases, the issuer could be late
in paying interest or principal, or could fail to pay its financial obligations
altogether.
Credit
Default Swaps:
The
Portfolio may enter into credit default swaps, either as a buyer or a seller of
the swap. A buyer of a swap pays a fee to buy protection against the risk that a
security will default. If no default occurs, the Portfolio will have paid the
fee, but typically will recover nothing under the swap. A seller of a swap
receives payment(s) in return for an obligation to pay the counterparty the full
notional value of a security in the event of a default of the security issuer.
As a seller of a swap, the Portfolio would effectively add leverage to its
portfolio because, in addition to its total net assets, the Portfolio would be
subject to investment exposure on the full notional value of the swap. Credit
default swaps are particularly subject to counterparty, credit, valuation,
liquidity and leveraging risks and the risk that the swap may not correlate with
its underlying asset as expected. Certain standardized swaps are subject to
mandatory central clearing. Central clearing is expected to reduce counterparty
credit risk and increase liquidity; however, there is no assurance that central
clearing will achieve that result, and in the meantime, central clearing and
related requirements expose the Portfolio to new kinds of costs and risks. In
addition, credit default swaps expose the Portfolio to the risk of improper
valuation.
Currency:
To the
extent that the Portfolio invests directly or indirectly in foreign (non-U.S.)
currencies or in securities denominated in, or that trade in, foreign (non-U.S.)
currencies, it is subject to the risk that those foreign (non-U.S.) currencies
will decline in value relative to the U.S. dollar or, in the case of hedging
positions, that the U.S. dollar will decline in value relative to the currency
being hedged by the Portfolio through foreign currency exchange
transactions.
Deflation:
Deflation occurs
when prices throughout the economy decline over time - the opposite of
inflation. When there is deflation, the principal and income of an
inflation-protected bond will decline and could result in losses.
Derivative
Instruments:
Derivative
instruments are subject to a number of risks, including the risk of changes in
the market price of the underlying securities, credit risk with respect to the
counterparty, risk of loss due to changes in market interest rates and liquidity
and volatility risk. The amounts required to purchase certain derivatives may be
small relative to the magnitude of exposure assumed by the Portfolio. Therefore,
the purchase of certain derivatives may have an economic leveraging effect on
the Portfolio and exaggerate any increase or decrease in the net asset value.
Derivatives may not perform as expected, so the Portfolio may not realize the
intended benefits. When used for hedging purposes, the change in value of a
derivative may not correlate as expected with the currency, security or other
risk being hedged. When used as an alternative or substitute for direct cash
investment, the return provided by the derivative may not provide the same
return as direct cash investment. In addition, given their complexity,
derivatives expose the Portfolio to the risk of improper valuation.
Environmental,
Social and/or Governance (strategy): The Sub-Adviser’s consideration of
environmental, social and/or governance (“ESG”) factors in selecting investments
for the Portfolio may cause it to forego other favorable investments that other
investors who do not consider similar factors or who evaluate them differently
might select. This may cause the Portfolio to underperform the stock market or
relevant benchmark as a whole or other funds that do not consider ESG factors or
that use such factors differently. The Sub-Adviser’s consideration of ESG
factors is qualitative and subjective by nature, and it is possible that it will
have an adverse effect on the Portfolio’s performance. In evaluating a company
or issuer in light of ESG factors, the Sub-Adviser may consider information and
data obtained through voluntary or third-party reporting that may be incomplete
or inaccurate. It is possible the companies or issuers identified through the
Sub-Adviser’s consideration of ESG factors will not operate as expected and will
not exhibit positive ESG characteristics to the extent the Sub-Adviser might
have anticipated.
Foreign
Investments/Developing and Emerging Markets: Investing in
foreign (non-U.S.) securities may result in the Portfolio experiencing more
rapid and extreme changes in value than a fund that invests exclusively in
securities of U.S. companies due to: smaller markets; differing reporting,
accounting, auditing and financial reporting standards and practices;
nationalization, expropriation, or confiscatory taxation; foreign currency
fluctuations, currency blockage, or replacement; potential for default on
sovereign debt; or political changes or diplomatic developments, which may
include the imposition of economic sanctions or other measures by the United
States or other governments and supranational organizations. Markets and
economies throughout the world are becoming increasingly interconnected, and
conditions or events in one market, country or region may adversely impact
investments or issuers in another market, country or region. Foreign investment
risks may be greater in developing and emerging
markets than in developed markets.
Growth
Investing:
Prices
of growth stocks are more sensitive to investor perceptions of the issuing
company’s growth potential and may fall quickly and significantly if investors
suspect that actual growth may be less than expected. There is a risk that funds
that invest in growth-oriented stocks may underperform other funds that invest
more broadly. Growth stocks tend to be more volatile than value stocks, and may
underperform the market as a whole over any given time period.
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Portfolio
3
High-Yield
Securities:
Lower
quality securities (including securities that have fallen below investment-grade
and are classified as “junk bonds” or “high yield securities”) have greater
credit risk and liquidity risk than higher quality (investment-grade)
securities, and their issuers' long-term ability to make payments is considered
speculative. Prices of lower quality bonds or other debt instruments are also
more volatile, are more sensitive to negative news about the economy or the
issuer, and have greater liquidity and price volatility risk.
Inflation-Indexed
Bonds:
If the
index measuring inflation falls, the principal value of inflation-indexed bonds
will be adjusted downward, and consequently the interest payable on these
securities (calculated with respect to a smaller principal amount) will be
reduced. In addition, inflation-indexed bonds are subject to the usual risks
associated with debt instruments, such as interest rate and credit risk.
Repayment of the original bond principal upon maturity (as adjusted for
inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds.
For bonds that do not provide a similar guarantee, the adjusted principal value
of the bond repaid at maturity may be less than the original
principal.
Interest
Rate: With bonds and other fixed rate
debt instruments, a rise in market interest rates generally causes values to
fall; conversely, values generally rise as market interest rates fall. The
higher the credit quality of the instrument, and the longer its maturity or
duration, the more sensitive it is likely to be to interest rate risk. Duration
is a measure of sensitivity of the price of a debt instrument to a change in
interest rate. As of the date of this Prospectus, the United States experiences
a low interest rate environment, which may increase the Portfolio’s exposure to
risks associated with rising market interest rates. Rising market interest rates
could have unpredictable effects on the markets and may expose fixed-income and
related markets to heightened volatility. To the extent that the Portfolio
invests in fixed-income securities, an increase in market interest rates may
lead to increased redemptions and increased portfolio turnover, which could
reduce liquidity for certain investments, adversely affect values, and increase
costs. Increased redemptions may cause the Portfolio to liquidate portfolio
positions when it may not be advantageous to do so and may lower returns. If
dealer capacity in fixed-income markets is insufficient for market conditions,
it may further inhibit liquidity and increase volatility in the fixed-income
markets. Further, recent and potential future changes in government policy may
affect interest rates. Negative or very low interest rates could magnify the
risks associated with changes in interest rates. In general, changing interest
rates, including rates that fall below zero, could have unpredictable effects on
markets and may expose fixed-income and related markets to heightened
volatility. Changes to monetary policy by the Federal Reserve Board or other
regulatory actions could expose fixed-income and related markets to heightened
volatility, interest rate sensitivity and reduced liquidity, which may impact
the Portfolio’s operations and return potential.
Investing
through Bond Connect: Chinese debt
instruments trade on the China Interbank Bond Market (“CIBM”) and may be
purchased through a market access program that is designed to, among other
things, enable foreign investment in the People’s Republic of China (“Bond
Connect”). There are significant risks inherent in investing in Chinese debt
instruments, similar to the risks of other fixed-income securities markets in
emerging markets. The prices of debt instruments traded on the CIBM may
fluctuate significantly due to low trading volume and potential lack of
liquidity. The rules to access debt instruments that trade on the CIBM through
Bond Connect are relatively new and subject to change, which may adversely
affect the Portfolio's ability to invest in these instruments and to enforce its
rights as a beneficial owner of these instruments. Trading through Bond Connect
is subject to a number of restrictions that may affect the Portfolio’s
investments and returns.
The
Chinese economy is generally considered an emerging and volatile market.
Although China has experienced a relatively stable political
environment in recent years, there is no guarantee that such stability will be
maintained in the future. Political, regulatory and diplomatic events, such as
the U.S.-China “trade war” that intensified in 2018, could have an adverse
effect on the Chinese or Hong Kong economies and on investments made through
China Connect programs.
Liquidity:
If a
security is illiquid, the Portfolio might be unable to sell the security at a
time when the Portfolio’s manager might wish to sell, or at all. Further, the
lack of an established secondary market may make it more difficult to value
illiquid securities, exposing the Portfolio to the risk that the price at which
it sells illiquid securities will be less than the price at which they were
valued when held by the Portfolio. The prices of illiquid securities may be more
volatile than more liquid investments. The risks associated with illiquid
securities may be greater in times of financial stress. The Portfolio could lose
money if it cannot sell a security at the time and price that would be most
beneficial to the Portfolio.
Market:
Stock
prices may be volatile or have reduced liquidity in response to real or
perceived impacts of factors including, but not limited to, economic conditions,
changes in market interest rates, and political events. Stock markets tend to be
cyclical, with periods when stock prices generally rise and periods when stock
prices generally decline. Any given stock market segment may remain out of favor
with investors for a short or long period of time, and stocks as an asset class
may underperform bonds or other asset classes during some periods. Additionally,
legislative, regulatory or tax policies or developments in these areas may
adversely impact the investment techniques available to a manager, add to costs
and impair the ability of the Portfolio to achieve its investment
objectives.
Voya Balanced
Portfolio
4
Market
Capitalization:
Stocks
fall into three broad market capitalization categories - large, mid, and small.
Investing primarily in one category carries the risk that, due to current market
conditions, that category may be out of favor with investors. If valuations of
large-capitalization companies appear to be greatly out of proportion to the
valuations of mid- or small-capitalization companies, investors may migrate to
the stocks of mid- and small-sized companies causing a fund that invests in
these companies to increase in value more rapidly than a fund that invests in
larger companies. Investing in mid- and small-capitalization companies may be
subject to special risks associated with narrower product lines, more limited
financial resources, smaller management groups, more limited publicly available
information, and a more limited trading market for their stocks as compared with
larger companies. As a result, stocks of mid- and small-capitalization companies
may be more volatile and may decline significantly in market
downturns.
Market
Disruption and Geopolitical: The Portfolio is subject to the
risk that geopolitical events will disrupt securities markets and adversely
affect global economies and markets. Due to the increasing interdependence among
global economies and markets, conditions in one country, market, or region might
adversely impact markets, issuers and/or foreign exchange rates in other
countries, including the U.S. Wars, terrorism, global health crises and
pandemics, and other geopolitical events have led, and in the future may lead,
to increased market volatility and may have adverse short- or long-term effects
on U.S. and world economies and markets generally. For example, the COVID-19
pandemic has resulted, and may continue to result, in significant market
volatility, exchange trading suspensions and closures, declines in global
financial markets, higher default rates, and a substantial economic downturn in
economies throughout the world. Natural and environmental disasters and systemic
market dislocations are also highly disruptive to economies and markets. In
addition, military action by Russia in Ukraine could adversely affect global
energy and financial markets and therefore could affect the value of a
Portfolio’s investments, including beyond a Portfolio’s direct exposure to
Russian issuers or nearby geographic regions. The extent and duration of the
military action, sanctions and resulting market disruptions are impossible to
predict and could be substantial. Those events as well as other changes in
non-U.S. and domestic economic, social, and political conditions also could
adversely affect individual issuers or related groups of issuers, securities
markets, interest rates, credit ratings, inflation, investor sentiment, and
other factors affecting the value of the investments of the Portfolio and the
Portfolio. Any of these occurrences could disrupt the operations of the
Portfolio and of the Portfolio’s service providers.
Mortgage-
and/or Asset-Backed Securities:
Defaults on, or low
credit quality or liquidity of the underlying assets of the asset-backed
(including mortgage-backed) securities may impair the value of these securities
and result in losses. There may be limitations on the enforceability of any
security interest or collateral granted with respect to those underlying assets
and the value of collateral may not satisfy the obligation upon default. These
securities also present a higher degree of prepayment and extension risk and
interest rate risk than do other types of debt instruments.
Natural
Resources/Commodity Securities:
The
operations and financial performance of companies in natural resources
industries may be directly affected by commodity prices. This risk is
exacerbated for those natural resources companies that own the underlying
commodity.
Other
Investment Companies:
The
main risk of investing in other investment companies, including exchange-traded
funds (“ETFs”), is the risk that the value of the securities underlying an
investment company might decrease. Shares of investment companies that are
listed on an exchange may trade at a discount or premium from their net asset
value. You will pay a proportionate share of the expenses of those other
investment companies (including management fees, administration fees, and
custodial fees) in addition to the expenses of the Portfolio. The investment
policies of the other investment companies may not be the same as those of the
Portfolio; as a result, an investment in the other investment companies may be
subject to additional or different risks than those to which the Portfolio is
typically subject.
Prepayment
and Extension: Many types of debt
instruments are subject to prepayment and extension risk. Prepayment risk is the
risk that the issuer of a debt instrument will pay back the principal earlier
than expected. This may occur when interest rates decline. Prepayment may expose
the Portfolio to a lower rate of return upon reinvestment of principal. Also, if
a debt instrument subject to prepayment has been purchased at a premium, the
value of the premium would be lost in the event of prepayment. Extension risk is
the risk that the issuer of a debt instrument will pay back the principal later
than expected. This may occur when interest rates rise. This may negatively
affect performance, as the value of the debt instrument decreases when principal
payments are made later than expected. Additionally, the Portfolio may be
prevented from investing proceeds it would have received at a given time at the
higher prevailing interest rates.
Real
Estate Companies and Real Estate Investment Trusts (“REITs”):
Investing in real
estate companies and REITs may subject the Portfolio to risks similar to those
associated with the direct ownership of real estate, including losses from
casualty or condemnation, changes in local and general economic conditions,
supply and demand, market interest rates, zoning laws,
Voya Balanced
Portfolio
5
regulatory
limitations on rents, property taxes, and operating expenses in addition to
terrorist attacks, wars, or other acts that destroy
real property. Investments in REITs are affected by the management skill and
creditworthiness of the REIT. The Portfolio will indirectly bear its
proportionate share of expenses, including management fees, paid by each REIT in
which it invests.
Restricted
Securities:
Securities that are
not registered for sale to the public under the Securities Act of 1933, as
amended, are referred to as “restricted securities.” These securities may be
sold in private placement transactions between issuers and their purchasers and
may be neither listed on an exchange nor traded in other established markets.
Many times these securities are subject to legal or contractual restrictions on
resale. As a result of the absence of a public trading market, the prices of
these securities may be more volatile, less liquid and more difficult to value
than publicly traded securities. The price realized from the sale of these
securities could be less than the amount originally paid or less than their fair
value if they are resold in privately negotiated transactions. In addition,
these securities may not be subject to disclosure and other investment
protection requirements that are afforded to publicly traded securities. Certain
investments may include investment in smaller, less seasoned issuers, which may
involve greater risk.
Securities
Lending:
Securities lending
involves two primary risks: “ investment risk ” and “ borrower default risk. ”
When lending securities, the Portfolio will receive cash or U.S. government
securities as collateral. Investment risk is the risk that the Portfolio will
lose money from the investment of the cash collateral received from the
borrower. Borrower default risk is the risk that the Portfolio will lose money
due to the failure of a borrower to return a borrowed security. Securities
lending may result in leverage. The use of leverage may exaggerate any increase
or decrease in the net asset value, causing the Portfolio to be more volatile.
The use of leverage may increase expenses and increase the impact of the
Portfolio’s other risks.
Sovereign
Debt:
These
securities are issued or guaranteed by foreign government entities. Investments
in sovereign debt are subject to the risk that a government entity may delay
payment, restructure its debt, or refuse to pay interest or repay principal on
its sovereign debt. Some of these reasons may include cash flow problems,
insufficient foreign currency reserves, political considerations, social
changes, the relative size of its debt position to its economy or its failure to
put in place economic reforms required by the International Monetary Fund or
other multilateral agencies. If a government entity defaults, it may ask for
more time in which to pay or for further loans. There is no legal process for
collecting sovereign debts that a government does not pay or bankruptcy
proceeding by which all or part of sovereign debt that a government entity has
not repaid may be collected.
U.S.
Government Securities and Obligations:
U.S.
government securities are obligations of, or guaranteed by, the U.S. government,
its agencies or government-sponsored enterprises. U.S. government securities are
subject to market and interest rate risk, and may be subject to varying degrees
of credit risk.
Value
Investing:
Securities that
appear to be undervalued may never appreciate to the extent expected. Further,
because the prices of value-oriented securities tend to correlate more closely
with economic cycles than growth-oriented securities, they generally are more
sensitive to changing economic conditions, such as changes in market interest
rates, corporate earnings and industrial production. The manager may be wrong in
its assessment of a company’s value and the securities the Portfolio holds may
not reach their full values. A particular risk of the Portfolio’s value approach
is that some holdings may not recover and provide the capital growth anticipated
or a security judged to be undervalued may actually be appropriately priced. The
market may not favor value-oriented securities and may not favor equities at
all. During those periods, the Portfolio’s relative performance may suffer.
There is a risk that funds that invest in value-oriented stocks may underperform
other funds that invest more broadly.
An
investment in the Portfolio is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation, the
Federal Reserve Board or any other government agency.
Performance
Information
The
following information is intended to help you understand the risks of investing
in the Portfolio. The following bar
chart shows the changes in the Portfolio's performance from year to year, and
the table compares the Portfolio's performance to the performance of a
broad-based securities market index/indices for the same period. The Portfolio's
performance information reflects applicable
fee waivers and/or expense limitations in effect during the period presented.
Absent such fee waivers/expense limitations, if any, performance would have been
lower.
The bar chart shows the performance of the Portfolio's Class S
shares. Performance for
other share classes would differ to the extent they have differences in their
fees and expenses.
Performance
shown in the bar chart and in the Average Annual Total Returns table does not
include insurance-related charges imposed under a
Variable Contract or expenses related to a Qualified Plan. If these charges or
expenses were included, performance would be lower. Thus, you should not compare
the Portfolio's performance directly with the performance information of other
investment products without taking into account all insurance-related charges
and expenses payable under your Variable Contract or Qualified Plan.
The
Portfolio's past performance is no guarantee of future results.
Voya Balanced
Portfolio
6
Calendar
Year Total Returns Class
S
(as of December 31 of each year)
(as of December 31 of each year)
|
Best
quarter: |
2nd Quarter
2020 |
14.35% |
|
Worst
quarter: |
1st Quarter
2020 |
-17.09% |
Average
Annual Total Returns %
(for the periods ended December 31, 2021)
(for the periods ended December 31, 2021)
|
|
|
1
Yr |
5
Yrs |
10
Yrs |
Since
Inception |
Inception
Date |
|
Class
I |
% |
15.92 |
10.34 |
9.32 |
N/A |
04/03/89 |
|
S&P
Target Risk® Growth Index1 |
% |
11.37 |
10.17 |
8.96 |
N/A |
|
|
Bloomberg
U.S. Aggregate Bond Index2 |
% |
-1.54 |
3.57 |
2.90 |
N/A |
|
|
MSCI EAFE®
Index1 |
% |
11.26 |
9.55 |
8.03 |
N/A |
|
|
Russell
3000® Index2 |
% |
25.66 |
17.97 |
16.30 |
N/A |
|
|
Class
S |
% |
15.62 |
10.06 |
9.06 |
N/A |
05/29/03 |
|
S&P
Target Risk® Growth Index1 |
% |
11.37 |
10.17 |
8.96 |
N/A |
|
|
Bloomberg
U.S. Aggregate Bond Index2 |
% |
-1.54 |
3.57 |
2.90 |
N/A |
|
|
MSCI EAFE®
Index1 |
% |
11.26 |
9.55 |
8.03 |
N/A |
|
|
Russell
3000® Index2 |
% |
25.66 |
17.97 |
16.30 |
N/A |
|
1
The index
returns include the reinvestment of dividends and distributions net of
withholding taxes, but do not reflect fees, brokerage commissions, or other
expenses.
2
The index
returns do not reflect deductions for fees, expenses, or
taxes.
Portfolio
Management
|
Investment
Adviser |
Sub-Adviser |
|
Voya
Investments, LLC |
Voya Investment
Management Co. LLC |
|
Portfolio
Managers |
|
|
Matthew
Toms, CFA
Portfolio
Manager (since 04/17) |
Barbara
Reinhard, CFA
Portfolio
Manager (since 05/18) |
|
Paul
Zemsky, CFA
Portfolio
Manager (since 04/07) |
|
Purchase
and Sale of Portfolio Shares
Shares
of the Portfolio are not offered directly to the public. Purchase and sale of
shares may be made only by separate accounts of
insurance companies serving as investment options under Variable Contracts or by
Qualified Plans, custodian accounts, and certain investment advisers and their
affiliates, other investment companies, or permitted investors. Please refer to
the prospectus for the appropriate insurance company separate account,
investment company, or your plan documents for information on how to direct
investments in, or sale from, an investment option corresponding to the
Portfolio and any fees that may apply. Participating insurance companies and
certain other designated organizations are authorized to receive purchase orders
on the Portfolio's behalf.
Tax
Information
Distributions
made by the Portfolio to a Variable Contract or Qualified Plan, and exchanges
and redemptions of Portfolio shares made by a Variable
Contract or Qualified Plan, ordinarily do not cause the corresponding contract
holder or plan participant to recognize income or gain for federal income tax
purposes. See the contract prospectus or the governing documents of your
Qualified Plan for information regarding the federal income tax treatment of the
distributions to your Variable Contract or Qualified Plan and the holders of the
contracts or plan participants.
Voya Balanced
Portfolio
7
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you invest in the Portfolio through a Variable Contract issued by an insurance
company or through a Qualified Plan that, in turn, was purchased
or serviced through an insurance company, broker-dealer or other financial
intermediary, the Portfolio and its adviser or distributor or their affiliates
may: (1) make payments to the insurance company issuer of the Variable Contract
or to the company servicing the Qualified Plan; and (2) make payments to the
insurance company, broker-dealer or other financial intermediary. These payments
may create a conflict of interest by: (1) influencing the insurance company or
the company servicing the Qualified Plan to make the Portfolio available as an
investment option for the Variable Contract or the Qualified Plan; or (2) by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Variable Contract or the pension servicing agent and/or the
Portfolio over other options. Ask your salesperson or Qualified Plan
administrator or visit your financial intermediary's website for more
information.
Voya Balanced
Portfolio
8
Voya Global High
Dividend Low Volatility Portfolio
Investment
Objective
The Portfolio seeks
long-term capital growth and current income.
Fees
and Expenses of the Portfolio
The
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Portfolio. You
may pay other fees and expenses such as fees and expenses imposed under your
variable annuity contracts or variable life insurance policies (“Variable
Contract”) or a qualified pension or retirement plan (“Qualified Plan”), which
are not reflected in the tables and examples below. If these fees or
expenses were included in the table, the Portfolio’s expenses would be higher.
For more information on these charges, please refer to the documents governing
your Variable Contract or consult your plan administrator.
Annual
Portfolio Operating Expenses
Expenses you pay each year as a % of the value of your investment
Expenses you pay each year as a % of the value of your investment
|
Class |
|
ADV |
I |
S |
S2 |
T |
|
Management
Fees |
% |
0.56 |
0.56 |
0.56 |
0.56 |
0.56 |
|
Distribution
and/or Shareholder Services (12b-1) Fees |
% |
0.50 |
None |
0.25 |
0.40 |
0.75 |
|
Other
Expenses |
% |
0.10 |
0.10 |
0.10 |
0.10 |
0.10 |
|
Total
Annual Portfolio Operating Expenses |
% |
1.16 |
0.66 |
0.91 |
1.06 |
1.41 |
|
Waivers
and Reimbursements1
|
% |
(0.06) |
(0.06) |
(0.06) |
(0.06) |
(0.21) |
|
Total
Annual Portfolio Operating Expenses
after
Waivers and Reimbursements |
% |
1.10 |
0.60 |
0.85 |
1.00 |
1.20 |
1
The adviser is contractually
obligated to limit expenses to 1.34%, 0.84%, 1.09%, 1.24%, and 1.44% for Class
ADV, Class I, Class S, Class S2, and Class T shares, respectively, through
May 1,
2023. This limitation is subject
to possible recoupment by the adviser within 36 months of waiver or
reimbursement. In addition, the adviser is contractually obligated to further
limit expenses to
1.10%, 0.60%, 0.85%, 1.00%, and 1.20% for Class ADV, Class I, Class S, Class S2,
and Class T shares, respectively, through May 1, 2023. The limitations do not
extend to
interest, taxes, investment-related costs, leverage expenses, extraordinary
expenses, and Acquired Fund Fees and Expenses. The distributor is contractually
obligated to waive 0.15% of the distribution fee for Class T shares through
May 1,
2023. Termination or modification
of these obligations requires approval by the Portfolio’s
board.
Expense
Example
The
Example is intended to help you compare the cost of investing in shares of the
Portfolio with the costs of investing in other mutual funds.
The Example does not reflect expenses and charges which are, or may be, imposed
under your Variable Contract or Qualified Plan. The Example assumes that you
invest $10,000 in the Portfolio for the time periods indicated. The Example also
assumes that your investment had a 5% return each year and that the Portfolio's
operating expenses remain the same. The Example
reflects applicable expense limitation agreements and/or waivers in effect, if
any, for the one-year period and the
first year of the three-, five-, and ten-year periods. Although your
actual costs may be higher or lower, based on these
assumptions your costs would be:
|
Class |
|
|
1
Yr |
3
Yrs |
5
Yrs |
10
Yrs |
|
|
|
|
|
|
|
ADV |
|
$ |
112 |
363 |
633 |
1,404 |
|
|
|
|
|
|
|
I |
|
$ |
61 |
205 |
362 |
817 |
|
|
|
|
|
|
|
S |
|
$ |
87 |
284 |
498 |
1,114 |
|
|
|
|
|
|
|
S2 |
|
$ |
102 |
331 |
579 |
1,289 |
|
|
|
|
|
|
|
T |
|
$ |
122 |
426 |
751 |
1,673 |
|
|
|
|
|
|
Portfolio
Turnover
The
Portfolio pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher transaction
costs. These costs, which are not reflected in Annual Portfolio Operating
Expenses or in the Expense Example, affect the Portfolio's
performance.
During the most recent fiscal year,
the Portfolio's portfolio turnover rate was 71% of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Portfolio invests at least 80% of its net assets
(plus borrowings for investment purposes) in a portfolio of
equity securities. The Portfolio will provide 60 days’ prior notice of any
change in this investment policy. The Portfolio invests primarily in equity
securities included in the MSCI World Value IndexSM (“Index”). The
Portfolio invests in securities of issuers in a number of different countries,
including the United States.
9
Voya Global High
Dividend Low Volatility Portfolio
The
sub-adviser (“Sub-Adviser”)
seeks to maximize total return to the extent consistent with maintaining lower
volatility than the Index. Volatility generally measures how much a fund’s
returns have varied over a specified time frame.
The
Portfolio may invest in derivative instruments including, but not limited to,
index futures. The Portfolio typically uses derivatives as a
substitute for purchasing securities included in the Index or for the purpose of
maintaining equity market exposure on its cash balance.
The Portfolio may
also invest in real estate-related securities, including real estate investment
trusts.
The
Portfolio may invest in other investment companies, including exchange-traded
funds, to the extent permitted under the Investment Company
Act of 1940, as amended, and the rules, regulations, and exemptive orders
thereunder (“1940 Act”).
The
Sub-Adviser creates a target universe that consists of dividend paying
securities by screening for companies that exhibit stable dividend
yields within each industry sector. Once the Sub-Adviser creates this target
universe, the Sub-Adviser seeks to identify the most attractive securities
within various geographic regions and sectors by ranking each security relative
to other securities within its region or sector, as applicable, using
proprietary fundamental sector-specific models. The Sub-Adviser then uses
optimization techniques to seek to achieve the Portfolio’s target dividend
yield, which is expected to be higher than the Index in aggregate, manage target
beta, determine active weights, and neutralize region and sector exposures in
order to create a portfolio that the Sub-Adviser believes will provide the
potential for maximum total return consistent with maintaining lower volatility
than the Index. Under certain market conditions, the Portfolio will likely earn
a lower level of total return than it would in the absence of its strategy of
maintaining a relatively low level of volatility.
In evaluating
investments for the Portfolio, the Sub-Adviser normally expects to take into
account environmental, social, and governance (“ESG”) factors to
determine whether any or all of those factors might have a material effect on
the value, risks, or prospects of a company. The Sub-Adviser intends to rely
primarily on factors identified through its proprietary empirical research as
material to a particular company or the industry in which it operates and on
third-party evaluations of a company’s ESG standing. The Sub-Adviser may give
environmental, social, and governance factors equal consideration or may focus
on one or more of those factors as the Sub-Adviser considers appropriate. The
Sub-Adviser may consider specific ESG metrics or a company’s progress or lack of
progress toward meeting ESG targets. ESG factors will be only one consideration
in the Sub-Adviser’s evaluation of any potential investment, and the effect, if
any, of ESG factors on the Sub-Adviser’s decision whether to invest in any case
will vary depending on the judgment of the Sub-Adviser.
The Portfolio
may lend portfolio securities on a short-term or long-term basis, up to
33 1∕3% of its total
assets.
Principal
Risks
You
could lose money on an investment in the Portfolio. Any of the
following risks, among others, could affect Portfolio performance or cause the
Portfolio to lose money or to underperform market averages of other
funds.
Company:
The
price of a company’s stock could decline or underperform for many reasons
including, among others, poor management, financial problems, reduced demand for
company goods or services, regulatory fines and judgments, or business
challenges. If a company declares bankruptcy or becomes insolvent, its stock
could become worthless.
Currency:
To the
extent that the Portfolio invests directly or indirectly in foreign (non-U.S.)
currencies or in securities denominated in, or that trade in, foreign (non-U.S.)
currencies, it is subject to the risk that those foreign (non-U.S.) currencies
will decline in value relative to the U.S. dollar or, in the case of hedging
positions, that the U.S. dollar will decline in value relative to the currency
being hedged by the Portfolio through foreign currency exchange
transactions.
Derivative
Instruments:
Derivative
instruments are subject to a number of risks, including the risk of changes in
the market price of the underlying securities, credit risk with respect to the
counterparty, risk of loss due to changes in market interest rates and liquidity
and volatility risk. The amounts required to purchase certain derivatives may be
small relative to the magnitude of exposure assumed by the Portfolio. Therefore,
the purchase of certain derivatives may have an economic leveraging effect on
the Portfolio and exaggerate any increase or decrease in the net asset value.
Derivatives may not perform as expected, so the Portfolio may not realize the
intended benefits. When used for hedging purposes, the change in value of a
derivative may not correlate as expected with the currency, security or other
risk being hedged. When used as an alternative or substitute for direct cash
investment, the return provided by the derivative may not provide the same
return as direct cash investment. In addition, given their complexity,
derivatives expose the Portfolio to the risk of improper valuation.
Dividend:
Companies that
issue dividend yielding equity securities are not required to continue to pay
dividends on such securities. Therefore, there is the possibility that such
companies could reduce or eliminate the payment of dividends in the future. As a
result, the Portfolio’s ability to execute its investment strategy may be
limited.
Environmental,
Social and/or Governance (strategy): The Sub-Adviser’s consideration of
environmental, social and/or governance (“ESG”) factors in selecting investments
for the Portfolio may cause it to forego other favorable investments that other
investors who do not consider similar factors or who evaluate them differently
might select. This may cause the Portfolio to underperform
Voya Global High
Dividend Low Volatility Portfolio
10
the stock market
or relevant benchmark as a whole or other funds that do not consider ESG factors
or that use such factors differently. The Sub-Adviser’s
consideration of ESG factors is qualitative and subjective by nature, and it is
possible that it will have an adverse effect on the Portfolio’s performance. In
evaluating a company or issuer in light of ESG factors, the Sub-Adviser may
consider information and data obtained through voluntary or third-party
reporting that may be incomplete or inaccurate. It is possible the companies or
issuers identified through the Sub-Adviser’s consideration of ESG factors will
not operate as expected and will not exhibit positive ESG characteristics to the
extent the Sub-Adviser might have anticipated.
Foreign
Investments: Investing in
foreign (non-U.S.) securities may result in the Portfolio experiencing more
rapid and extreme changes in value than a fund that invests exclusively in
securities of U.S. companies due to: smaller markets; differing reporting,
accounting, auditing and financial reporting standards and practices;
nationalization, expropriation, or confiscatory taxation; foreign currency
fluctuations, currency blockage, or replacement; potential for default on
sovereign debt; or political changes or diplomatic developments, which may
include the imposition of economic sanctions or other measures by the United
States or other governments and supranational organizations. Markets and
economies throughout the world are becoming increasingly interconnected, and
conditions or events in one market, country or region may adversely impact
investments or issuers in another market, country or region.
Investment
Model:
A manager’s proprietary model may not adequately allow for existing or
unforeseen market factors or the interplay between such factors. Volatility
management techniques may not always be successful in reducing volatility, may
not
protect against market declines, and may limit the Portfolio’s participation in
market gains, negatively impacting performance even during periods when the
market is rising. During sudden or significant market rallies, such
underperformance may be significant. Moreover, volatility management strategies
may increase portfolio transaction costs, which may increase losses or reduce
gains. The Portfolio’s volatility may not be lower than that of the Index during
all market cycles due to market factors. Portfolios that are
actively managed, in whole or in part, according to a quantitative investment
model can perform differently from the market as a whole based on the investment
model and the factors used in the analysis, the weight placed on each factor,
and changes from the factors’ historical trends. Mistakes in the construction
and implementation of the investment models (including, for example, data
problems and/or software issues) may create errors or limitations that might go
undetected or are discovered only after the errors or limitations have
negatively impacted performance. There is no guarantee that the use of these
investment models will result in effective investment decisions for the
Portfolio.
Liquidity:
If a
security is illiquid, the Portfolio might be unable to sell the security at a
time when the Portfolio’s manager might wish to sell, or at all. Further, the
lack of an established secondary market may make it more difficult to value
illiquid securities, exposing the Portfolio to the risk that the price at which
it sells illiquid securities will be less than the price at which they were
valued when held by the Portfolio. The prices of illiquid securities may be more
volatile than more liquid investments. The risks associated with illiquid
securities may be greater in times of financial stress. The Portfolio could lose
money if it cannot sell a security at the time and price that would be most
beneficial to the Portfolio.
Market:
Stock
prices may be volatile or have reduced liquidity in response to real or
perceived impacts of factors including, but not limited to, economic conditions,
changes in market interest rates, and political events. Stock markets tend to be
cyclical, with periods when stock prices generally rise and periods when stock
prices generally decline. Any given stock market segment may remain out of favor
with investors for a short or long period of time, and stocks as an asset class
may underperform bonds or other asset classes during some periods. Additionally,
legislative, regulatory or tax policies or developments in these areas may
adversely impact the investment techniques available to a manager, add to costs
and impair the ability of the Portfolio to achieve its investment
objectives.
Market
Capitalization:
Stocks
fall into three broad market capitalization categories - large, mid, and small.
Investing primarily in one category carries the risk that, due to current market
conditions, that category may be out of favor with investors. If valuations of
large-capitalization companies appear to be greatly out of proportion to the
valuations of mid- or small-capitalization companies, investors may migrate to
the stocks of mid- and small-sized companies causing a fund that invests in
these companies to increase in value more rapidly than a fund that invests in
larger companies. Investing in mid- and small-capitalization companies may be
subject to special risks associated with narrower product lines, more limited
financial resources, smaller management groups, more limited publicly available
information, and a more limited trading market for their stocks as compared with
larger companies. As a result, stocks of mid- and small-capitalization companies
may be more volatile and may decline significantly in market
downturns.
Market
Disruption and Geopolitical: The Portfolio is subject to the
risk that geopolitical events will disrupt securities markets and adversely
affect global economies and markets. Due to the increasing interdependence among
global economies and markets, conditions in one country, market, or region might
adversely impact markets, issuers and/or foreign exchange rates in other
countries, including the U.S. Wars, terrorism, global health crises and
pandemics, and other geopolitical events have led, and in the future may lead,
to increased market volatility and may have adverse short- or long-term effects
on U.S. and world economies and markets generally. For example, the COVID-19
pandemic has resulted, and may continue to result, in
Voya Global High
Dividend Low Volatility Portfolio
11
significant market
volatility, exchange trading suspensions and closures, declines in global
financial markets, higher default rates, and a substantial economic
downturn in economies throughout the world. Natural and environmental disasters
and systemic market dislocations are also highly disruptive to economies and
markets. In addition, military action by Russia in Ukraine could adversely
affect global energy and financial markets and therefore could affect the value
of a Portfolio’s investments, including beyond a Portfolio’s direct exposure to
Russian issuers or nearby geographic regions. The extent and duration of the
military action, sanctions and resulting market disruptions are impossible to
predict and could be substantial. Those events as well as other changes in
non-U.S. and domestic economic, social, and political conditions also could
adversely affect individual issuers or related groups of issuers, securities
markets, interest rates, credit ratings, inflation, investor sentiment, and
other factors affecting the value of the investments of the Portfolio and the
Portfolio. Any of these occurrences could disrupt the operations of the
Portfolio and of the Portfolio’s service providers.
Other
Investment Companies:
The
main risk of investing in other investment companies, including exchange-traded
funds (“ETFs”), is the risk that the value of the securities underlying an
investment company might decrease. Shares of investment companies that are
listed on an exchange may trade at a discount or premium from their net asset
value. You will pay a proportionate share of the expenses of those other
investment companies (including management fees, administration fees, and
custodial fees) in addition to the expenses of the Portfolio. The investment
policies of the other investment companies may not be the same as those of the
Portfolio; as a result, an investment in the other investment companies may be
subject to additional or different risks than those to which the Portfolio is
typically subject.
Real
Estate Companies and Real Estate Investment Trusts (“REITs”): Investing in real estate companies
and REITs may subject the Portfolio to risks similar to those associated with
the direct ownership of real estate, including losses from casualty or
condemnation, changes in local and general economic conditions, supply and
demand, market interest rates, zoning laws, regulatory limitations on rents,
property taxes, and operating expenses in addition to terrorist attacks, wars,
or other acts that destroy real property. Investments in REITs are affected by
the management skill and creditworthiness of the REIT. The Portfolio will
indirectly bear its proportionate share of expenses, including management fees,
paid by each REIT in which it invests.
Securities
Lending:
Securities lending
involves two primary risks: “ investment risk ” and “ borrower default risk. ”
When lending securities, the Portfolio will receive cash or U.S. government
securities as collateral. Investment risk is the risk that the Portfolio will
lose money from the investment of the cash collateral received from the
borrower. Borrower default risk is the risk that the Portfolio will lose money
due to the failure of a borrower to return a borrowed security. Securities
lending may result in leverage. The use of leverage may exaggerate any increase
or decrease in the net asset value, causing the Portfolio to be more volatile.
The use of leverage may increase expenses and increase the impact of the
Portfolio’s other risks.
An
investment in the Portfolio is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation, the
Federal Reserve Board or any other government agency.
Performance
Information
The
following information is intended to help you understand the risks of investing
in the Portfolio. The following bar
chart shows the changes in the Portfolio's performance from year to year, and
the table compares the Portfolio's performance to the performance of a
broad-based securities market index/indices for the same period. The Portfolio's
performance information reflects applicable
fee waivers and/or expense limitations in effect during the period presented.
Absent such fee waivers/expense limitations, if any, performance would have been
lower.
The bar chart shows the performance of the Portfolio's Class ADV shares. Performance for
other share classes would differ to the extent they have differences in their
fees and expenses. The Class I shares
performance shown for the period prior to their inception date is the
performance of Class S shares without adjustment for any differences in the
expenses between the two classes. If adjusted for such differences, returns
would be different.
Performance
shown in the bar chart and in the Average Annual Total Returns table does not
include insurance-related charges imposed under a
Variable Contract or expenses related to a Qualified Plan. If these charges or
expenses were included, performance would be lower. Thus, you should not compare
the Portfolio's performance directly with the performance information of other
investment products without taking into account all insurance-related charges
and expenses payable under your Variable Contract or Qualified Plan.
The
Portfolio's past performance is no guarantee of future results.
The
Portfolio’s performance prior to December 31, 2020 reflects returns achieved
pursuant to different principal investment strategies. The
Portfolio’s performance prior to May 1, 2018 reflects returns achieved pursuant
to different principal investment strategies. The Portfolio’s performance prior
to July 12, 2013 reflects returns achieved pursuant to a different investment
objective and principal investment strategies. If the Portfolio’s current
objective and strategies had been in place for the prior periods, the
performance information shown would have been different.
Voya Global High
Dividend Low Volatility Portfolio
12
Calendar
Year Total Returns Class
ADV
(as of December 31 of each year)
(as of December 31 of each year)
|
Best
quarter: |
2nd Quarter
2020 |
12.81% |
|
Worst
quarter: |
1st Quarter
2020 |
-23.36% |
Average
Annual Total Returns %
(for the periods ended December 31, 2021)
(for the periods ended December 31, 2021)
|
|
|
1
Yr |
5
Yrs |
10
Yrs |
Since
Inception |
Inception
Date |
|
Class
ADV |
% |
20.23 |
9.93 |
8.41 |
N/A |
01/28/08 |
|
MSCI World
Value IndexSM1 |
% |
21.94 |
8.92 |
9.53 |
N/A |
|
|
Class
I |
% |
20.87 |
10.47 |
8.86 |
N/A |
03/05/15 |
|
MSCI World
Value IndexSM1 |
% |
21.94 |
8.92 |
9.53 |
N/A |
|
|
Class
S |
% |
20.56 |
10.19 |
8.68 |
N/A |
01/28/08 |
|
MSCI World
Value IndexSM1 |
% |
21.94 |
8.92 |
9.53 |
N/A |
|
|
Class
S2 |
% |
20.46 |
10.04 |
N/A |
6.98 |
03/05/15 |
|
MSCI World
Value IndexSM1 |
% |
21.94 |
8.92 |
N/A |
7.26 |
|
|
Class
T |
% |
20.19 |
9.81 |
N/A |
6.78 |
03/05/15 |
|
MSCI World
Value IndexSM1 |
% |
21.94 |
8.92 |
N/A |
7.26 |
|
1
The index returns include the
reinvestment of dividends and distributions net of withholding taxes, but do not
reflect fees, brokerage commissions, or other expenses.
Portfolio
Management
|
Investment
Adviser |
Sub-Adviser |
|
Voya
Investments, LLC |
Voya Investment
Management Co. LLC |
|
Portfolio
Managers |
|
|
Vincent
Costa, CFA
Portfolio
Manager (since 04/12) |
Peg
DiOrio, CFA
Portfolio
Manager (since 02/19) |
|
Steve
Wetter
Portfolio
Manager (since 05/18) |
Kai
Yee Wong
Portfolio
Manager (since 05/18) |
Purchase
and Sale of Portfolio Shares
Shares
of the Portfolio are not offered directly to the public. Purchase and sale of
shares may be made only by separate accounts of
insurance companies serving as investment options under Variable Contracts or by
Qualified Plans, custodian accounts, and certain investment advisers and their
affiliates, other investment companies, or permitted investors. Please refer to
the prospectus for the appropriate insurance company separate account,
investment company, or your plan documents for information on how to direct
investments in, or sale from, an investment option corresponding to the
Portfolio and any fees that may apply. Participating insurance companies and
certain other designated organizations are authorized to receive purchase orders
on the Portfolio's behalf.
Tax
Information
Distributions
made by the Portfolio to a Variable Contract or Qualified Plan, and exchanges
and redemptions of Portfolio shares made by a Variable
Contract or Qualified Plan, ordinarily do not cause the corresponding contract
holder or plan participant to recognize income or gain for federal income tax
purposes. See the contract prospectus or the governing documents of your
Qualified Plan for information regarding the federal income tax treatment of the
distributions to your Variable Contract or Qualified Plan and the holders of the
contracts or plan participants.
Voya Global High
Dividend Low Volatility Portfolio
13
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you invest in the Portfolio through a Variable Contract issued by an insurance
company or through a Qualified Plan that, in turn, was purchased
or serviced through an insurance company, broker-dealer or other financial
intermediary, the Portfolio and its adviser or distributor or their affiliates
may: (1) make payments to the insurance company issuer of the Variable Contract
or to the company servicing the Qualified Plan; and (2) make payments to the
insurance company, broker-dealer or other financial intermediary. These payments
may create a conflict of interest by: (1) influencing the insurance company or
the company servicing the Qualified Plan to make the Portfolio available as an
investment option for the Variable Contract or the Qualified Plan; or (2) by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Variable Contract or the pension servicing agent and/or the
Portfolio over other options. Ask your salesperson or Qualified Plan
administrator or visit your financial intermediary's website for more
information.
Voya Global High
Dividend Low Volatility Portfolio
14
|
Class |
|
ADV1
|
I |
S |
S21
|
|
Management
Fees |
% |
|
|
|
|
|
Distribution
and/or Shareholder Services (12b-1) Fees |
% |
|
|
|
|
|
Other
Expenses |
% |
|
|
|
|
|
Total
Annual Portfolio Operating Expenses |
% |
|
|
|
|
|
Waivers
and Reimbursements2 |
% |
( |
( |
( |
( |
|
Total
Annual Portfolio Operating Expenses
after
Waivers and Reimbursements |
% |
|
|
|
|
1
2
|
Class |
|
|
1
Yr |
3
Yrs |
5
Yrs |
10
Yrs |
|
|
|
|
|
|
|
ADV |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
I |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
S |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
S2 |
|
$ |
|
|
|
|
|
|
|
|
|
|
15
Voya Government
Money Market Portfolio
Voya Government
Money Market Portfolio
16
Voya Government
Money Market Portfolio
17
(as of December 31 of each year)
|
|
|
|
|
|
|
|
(for the periods ended December 31, 2021)
|
|
|
1
Yr |
5
Yrs |
10
Yrs |
Since
Inception |
Inception
Date |
|
Class
I |
% |
|
|
|
|
|
|
Class
S |
% |
|
|
|
|
|
Voya Government
Money Market Portfolio
18
Portfolio
Management
|
Investment
Adviser |
Sub-Adviser |
|
Voya
Investments, LLC |
Voya Investment
Management Co. LLC |
|
Portfolio
Manager |
|
|
David
S. Yealy
Portfolio
Manager (since 11/04) |
|
Purchase
and Sale of Portfolio Shares
Shares
of the Portfolio are not offered directly to the public. Purchase and sale of
shares may be made only by separate accounts of
insurance companies serving as investment options under Variable Contracts or by
Qualified Plans, custodian accounts, and certain investment advisers and their
affiliates, other investment companies, or permitted investors. Please refer to
the prospectus for the appropriate insurance company separate account,
investment company, or your plan documents for information on how to direct
investments in, or sale from, an investment option corresponding to the
Portfolio and any fees that may apply. Participating insurance companies and
certain other designated organizations are authorized to receive purchase orders
on the Portfolio's behalf.
Class ADV and Class
S2 shares of the Portfolio are not currently offered.
Tax
Information
Distributions
made by the Portfolio to a Variable Contract or Qualified Plan, and exchanges
and redemptions of Portfolio shares made by a Variable
Contract or Qualified Plan, ordinarily do not cause the corresponding contract
holder or plan participant to recognize income or gain for federal income tax
purposes. See the contract prospectus or the governing documents of your
Qualified Plan for information regarding the federal income tax treatment of the
distributions to your Variable Contract or Qualified Plan and the holders of the
contracts or plan participants.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you invest in the Portfolio through a Variable Contract issued by an insurance
company or through a Qualified Plan that, in turn, was purchased
or serviced through an insurance company, broker-dealer or other financial
intermediary, the Portfolio and its adviser or distributor or their affiliates
may: (1) make payments to the insurance company issuer of the Variable Contract
or to the company servicing the Qualified Plan; and (2) make payments to the
insurance company, broker-dealer or other financial intermediary. These payments
may create a conflict of interest by: (1) influencing the insurance company or
the company servicing the Qualified Plan to make the Portfolio available as an
investment option for the Variable Contract or the Qualified Plan; or (2) by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Variable Contract or the pension servicing agent and/or the
Portfolio over other options. Ask your salesperson or Qualified Plan
administrator or visit your financial intermediary's website for more
information.
Voya Government
Money Market Portfolio
19
Voya Growth
and Income Portfolio
Investment
Objective
The
Portfolio seeks to maximize total return through investments in a diversified
portfolio of common stock and securities convertible into
common stocks. It is anticipated that capital appreciation and investment income
will both be major factors in achieving total return.
Fees
and Expenses of the Portfolio
The
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Portfolio. You
may pay other fees and expenses such as fees and expenses imposed under your
variable annuity contracts or variable life insurance policies (“Variable
Contract”) or a qualified pension or retirement plan (“Qualified Plan”), which
are not reflected in the tables and examples below. If these fees or
expenses were included in the table, the Portfolio’s expenses would be higher.
For more information on these charges, please refer to the documents governing
your Variable Contract or consult your plan administrator.
Annual
Portfolio Operating Expenses1
Expenses you pay each year as a % of the value of your investment
Expenses you pay each year as a % of the value of your investment
|
Class |
|
ADV |
I |
S |
S2 |
|
Management
Fees |
% |
0.60 |
0.60 |
0.60 |
0.60 |
|
Distribution
and/or Shareholder Services (12b-1) Fees |
% |
0.50 |
None |
0.25 |
0.40 |
|
Other
Expenses |
% |
0.06 |
0.06 |
0.06 |
0.06 |
|
Total
Annual Portfolio Operating Expenses |
% |
1.16 |
0.66 |
0.91 |
1.06 |
|
Waivers
and Reimbursements2 |
% |
(0.05) |
None |
None |
None |
|
Total
Annual Portfolio Operating Expenses after
Waivers
and Reimbursements |
% |
1.11 |
0.66 |
0.91 |
1.06 |
1
Expense information has been
restated to reflect current contractual rates.
2
The adviser is contractually
obligated to limit expenses to 1.27%, 0.67%, 0.92%, and 1.07% for Class ADV,
Class I, Class S, and Class S2 shares, respectively, through May 1, 2023. The limitation does not extend to
interest, taxes, investment-related costs, leverage expenses, extraordinary
expenses and Acquired Fund Fees and Expenses. This limitation is subject to
possible recoupment by the adviser within 36 months of the waiver or
reimbursement. The distributor is contractually obligated to waive 0.05% of the
distribution fee for Class ADV shares through May 1, 2023. Termination or modification of
these obligations requires approval by the Portfolio’s board.
Expense
Example
The
Example is intended to help you compare the cost of investing in shares of the
Portfolio with the costs of investing in other mutual funds.
The Example does not reflect expenses and charges which are, or may be, imposed
under your Variable Contract or Qualified Plan. The Example assumes that you
invest $10,000 in the Portfolio for the time periods indicated. The Example also
assumes that your investment had a 5% return each year and that the Portfolio's
operating expenses remain the same. The Example
reflects applicable expense limitation agreements and/or waivers in effect, if
any, for the one-year period and the
first year of the three-, five-, and ten-year periods. Although your
actual costs may be higher or lower, based on these
assumptions your costs would be:
|
Class |
|
|
1
Yr |
3
Yrs |
5
Yrs |
10
Yrs |
|
|
|
|
|
|
|
ADV |
|
$ |
113 |
364 |
633 |
1,405 |
|
|
|
|
|
|
|
I |
|
$ |
67 |
211 |
368 |
822 |
|
|
|
|
|
|
|
S |
|
$ |
93 |
290 |
504 |
1,120 |
|
|
|
|
|
|
|
S2 |
|
$ |
108 |
337 |
585 |
1,294 |
|
|
|
|
|
|
Portfolio
Turnover
The
Portfolio pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher transaction
costs. These costs, which are not reflected in Annual Portfolio Operating
Expenses or in the Expense Example, affect the Portfolio's
performance.
During the most recent fiscal year,
the Portfolio's portfolio turnover rate was 65% of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Portfolio invests at least 65% of its total assets
in common stocks that the sub-adviser (“Sub-Adviser”)
believes have significant potential for capital appreciation, income growth, or
both.
20
Voya Growth
and Income Portfolio
The
Sub-Adviser may invest principally in common stock and securities convertible
into common stock having significant potential for capital
appreciation, may purchase common stock principally for their income potential
through dividends, or may acquire securities having a mix of these
characteristics.
The
Portfolio may invest in derivative instruments including, but not limited to,
put and call options. The Portfolio may also engage in option
writing. The Portfolio typically uses derivatives to seek to reduce exposure to
volatility and to substitute for taking a position in the underlying
asset.
The
Portfolio may invest in other investment companies, including exchange-traded
funds, to the extent permitted under the Investment Company
Act of 1940, as amended, and the rules, regulations, and exemptive orders
thereunder (“1940 Act”).
The Portfolio may
also invest in real estate-related securities, including real estate investment
trusts.
In
managing the Portfolio, the Sub-Adviser emphasizes stocks of larger companies;
looks to strategically invest the Portfolio's assets in stocks of
mid-sized companies and up to 25% of its total assets in stocks of foreign
issuers, depending upon market conditions; and utilizes an intensive,
fundamentally driven research process to evaluate company financial
characteristics (e.g.,
price-to-earnings ratios, growth rates, and earnings estimates) to select
securities within each class. In analyzing these characteristics, the
Sub-Adviser attempts to identify positive earnings momentum and positive
valuation characteristics in selecting securities whose perceived value is not
reflected in their price.
In evaluating
investments for the Portfolio, the Sub-Adviser normally expects to take into
account environmental, social, and governance (“ESG”) factors to
determine whether any or all of those factors might have a material effect on
the value, risks, or prospects of a company. The Sub-Adviser intends to rely
primarily on factors identified through its proprietary empirical research as
material to a particular company or the industry in which it operates and on
third-party evaluations of a company’s ESG standing. The Sub-Adviser may give
environmental, social, and governance factors equal consideration or may focus
on one or more of those factors as the Sub-Adviser considers appropriate. The
Sub-Adviser may consider specific ESG metrics or a company’s progress or lack of
progress toward meeting ESG targets. ESG factors will be only one consideration
in the Sub-Adviser’s evaluation of any potential investment, and the effect, if
any, of ESG factors on the Sub-Adviser’s decision whether to invest in any case
will vary depending on the judgment of the Sub-Adviser.
The
Sub-Adviser may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into opportunities
believed to be more promising, among others.
The Portfolio
may lend portfolio securities on a short-term or long-term basis, up to
33 1∕3% of its total
assets.
Principal
Risks
You
could lose money on an investment in the Portfolio. Any of the
following risks, among others, could affect Portfolio performance or cause the
Portfolio to lose money or to underperform market averages of other
funds.
Company:
The
price of a company’s stock could decline or underperform for many reasons
including, among others, poor management, financial problems, reduced demand for
company goods or services, regulatory fines and judgments, or business
challenges. If a company declares bankruptcy or becomes insolvent, its stock
could become worthless.
Convertible
Securities:
Convertible
securities are securities that are convertible into or exercisable for common
stocks at a stated price or rate. Convertible securities are subject to the
usual risks associated with debt instruments, such as interest rate and credit
risk. In addition, because convertible securities react to changes in the value
of the stocks into which they convert, they are subject to market
risk.
Credit:
The
price of a bond or other debt instrument is likely to fall if the issuer’s
actual or perceived financial health deteriorates, whether because of broad
economic or issuer-specific reasons. In certain cases, the issuer could be late
in paying interest or principal, or could fail to pay its financial obligations
altogether.
Currency:
To the
extent that the Portfolio invests directly or indirectly in foreign (non-U.S.)
currencies or in securities denominated in, or that trade in, foreign (non-U.S.)
currencies, it is subject to the risk that those foreign (non-U.S.) currencies
will decline in value relative to the U.S. dollar or, in the case of hedging
positions, that the U.S. dollar will decline in value relative to the currency
being hedged by the Portfolio through foreign currency exchange
transactions.
Derivative
Instruments:
Derivative
instruments are subject to a number of risks, including the risk of changes in
the market price of the underlying securities, credit risk with respect to the
counterparty, risk of loss due to changes in market interest rates and liquidity
and volatility risk. The amounts required to purchase certain derivatives may be
small relative to the magnitude of exposure assumed by the Portfolio. Therefore,
the purchase of certain derivatives may have an economic leveraging effect on
the Portfolio and exaggerate any increase or decrease in the net asset value.
Derivatives may not perform as expected, so the Portfolio may not realize the
intended benefits. When used for hedging purposes, the change in value of a
derivative
Voya Growth
and Income Portfolio
21
may
not correlate as expected with the currency, security or other risk being
hedged. When used as an alternative or substitute for direct cash
investment, the return provided by the derivative may not provide the same
return as direct cash investment. In addition, given their complexity,
derivatives expose the Portfolio to the risk of improper valuation.
Dividend:
Companies that
issue dividend yielding equity securities are not required to continue to pay
dividends on such securities. Therefore, there is the possibility that such
companies could reduce or eliminate the payment of dividends in the future. As a
result, the Portfolio’s ability to execute its investment strategy may be
limited.
Environmental,
Social and/or Governance (strategy): The Sub-Adviser’s consideration of
environmental, social and/or governance (“ESG”) factors in selecting investments
for the Portfolio may cause it to forego other favorable investments that other
investors who do not consider similar factors or who evaluate them differently
might select. This may cause the Portfolio to underperform the stock market or
relevant benchmark as a whole or other funds that do not consider ESG factors or
that use such factors differently. The Sub-Adviser’s consideration of ESG
factors is qualitative and subjective by nature, and it is possible that it will
have an adverse effect on the Portfolio’s performance. In evaluating a company
or issuer in light of ESG factors, the Sub-Adviser may consider information and
data obtained through voluntary or third-party reporting that may be incomplete
or inaccurate. It is possible the companies or issuers identified through the
Sub-Adviser’s consideration of ESG factors will not operate as expected and will
not exhibit positive ESG characteristics to the extent the Sub-Adviser might
have anticipated.
Foreign
Investments: Investing in
foreign (non-U.S.) securities may result in the Portfolio experiencing more
rapid and extreme changes in value than a fund that invests exclusively in
securities of U.S. companies due to: smaller markets; differing reporting,
accounting, auditing and financial reporting standards and practices;
nationalization, expropriation, or confiscatory taxation; foreign currency
fluctuations, currency blockage, or replacement; potential for default on
sovereign debt; or political changes or diplomatic developments, which may
include the imposition of economic sanctions or other measures by the United
States or other governments and supranational organizations. Markets and
economies throughout the world are becoming increasingly interconnected, and
conditions or events in one market, country or region may adversely impact
investments or issuers in another market, country or region.
Growth
Investing:
Prices
of growth stocks are more sensitive to investor perceptions of the issuing
company’s growth potential and may fall quickly and significantly if investors
suspect that actual growth may be less than expected. There is a risk that funds
that invest in growth-oriented stocks may underperform other funds that invest
more broadly. Growth stocks tend to be more volatile than value stocks, and may
underperform the market as a whole over any given time period.
Interest
Rate: With bonds and other fixed rate
debt instruments, a rise in market interest rates generally causes values to
fall; conversely, values generally rise as market interest rates fall. The
higher the credit quality of the instrument, and the longer its maturity or
duration, the more sensitive it is likely to be to interest rate risk. Duration
is a measure of sensitivity of the price of a debt instrument to a change in
interest rate. As of the date of this Prospectus, the United States experiences
a low interest rate environment, which may increase the Portfolio’s exposure to
risks associated with rising market interest rates. Rising market interest rates
could have unpredictable effects on the markets and may expose fixed-income and
related markets to heightened volatility. To the extent that the Portfolio
invests in fixed-income securities, an increase in market interest rates may
lead to increased redemptions and increased portfolio turnover, which could
reduce liquidity for certain investments, adversely affect values, and increase
costs. Increased redemptions may cause the Portfolio to liquidate portfolio
positions when it may not be advantageous to do so and may lower returns. If
dealer capacity in fixed-income markets is insufficient for market conditions,
it may further inhibit liquidity and increase volatility in the fixed-income
markets. Further, recent and potential future changes in government policy may
affect interest rates. Negative or very low interest rates could magnify the
risks associated with changes in interest rates. In general, changing interest
rates, including rates that fall below zero, could have unpredictable effects on
markets and may expose fixed-income and related markets to heightened
volatility. Changes to monetary policy by the Federal Reserve Board or other
regulatory actions could expose fixed-income and related markets to heightened
volatility, interest rate sensitivity and reduced liquidity, which may impact
the Portfolio’s operations and return potential.
Liquidity:
If a
security is illiquid, the Portfolio might be unable to sell the security at a
time when the Portfolio’s manager might wish to sell, or at all. Further, the
lack of an established secondary market may make it more difficult to value
illiquid securities, exposing the Portfolio to the risk that the price at which
it sells illiquid securities will be less than the price at which they were
valued when held by the Portfolio. The prices of illiquid securities may be more
volatile than more liquid investments. The risks associated with illiquid
securities may be greater in times of financial stress. The Portfolio could lose
money if it cannot sell a security at the time and price that would be most
beneficial to the Portfolio.
Market:
Stock
prices may be volatile or have reduced liquidity in response to real or
perceived impacts of factors including, but not limited to, economic conditions,
changes in market interest rates, and political events. Stock markets tend to be
cyclical, with periods when stock prices generally rise and periods when stock
prices generally decline. Any given stock market segment may remain out of favor
with investors for a short or long period of time, and stocks as an asset class
may underperform
Voya Growth
and Income Portfolio
22
bonds
or other asset classes during some periods. Additionally, legislative,
regulatory or tax policies or developments in these areas may adversely
impact the investment techniques available to a manager, add to costs and impair
the ability of the Portfolio to achieve its investment objectives.
Market
Capitalization:
Stocks
fall into three broad market capitalization categories - large, mid, and small.
Investing primarily in one category carries the risk that, due to current market
conditions, that category may be out of favor with investors. If valuations of
large-capitalization companies appear to be greatly out of proportion to the
valuations of mid- or small-capitalization companies, investors may migrate to
the stocks of mid- and small-sized companies causing a fund that invests in
these companies to increase in value more rapidly than a fund that invests in
larger companies. Investing in mid- and small-capitalization companies may be
subject to special risks associated with narrower product lines, more limited
financial resources, smaller management groups, more limited publicly available
information, and a more limited trading market for their stocks as compared with
larger companies. As a result, stocks of mid- and small-capitalization companies
may be more volatile and may decline significantly in market
downturns.
Market
Disruption and Geopolitical: The Portfolio is subject to the
risk that geopolitical events will disrupt securities markets and adversely
affect global economies and markets. Due to the increasing interdependence among
global economies and markets, conditions in one country, market, or region might
adversely impact markets, issuers and/or foreign exchange rates in other
countries, including the U.S. Wars, terrorism, global health crises and
pandemics, and other geopolitical events have led, and in the future may lead,
to increased market volatility and may have adverse short- or long-term effects
on U.S. and world economies and markets generally. For example, the COVID-19
pandemic has resulted, and may continue to result, in significant market
volatility, exchange trading suspensions and closures, declines in global
financial markets, higher default rates, and a substantial economic downturn in
economies throughout the world. Natural and environmental disasters and systemic
market dislocations are also highly disruptive to economies and markets. In
addition, military action by Russia in Ukraine could adversely affect global
energy and financial markets and therefore could affect the value of a
Portfolio’s investments, including beyond a Portfolio’s direct exposure to
Russian issuers or nearby geographic regions. The extent and duration of the
military action, sanctions and resulting market disruptions are impossible to
predict and could be substantial. Those events as well as other changes in
non-U.S. and domestic economic, social, and political conditions also could
adversely affect individual issuers or related groups of issuers, securities
markets, interest rates, credit ratings, inflation, investor sentiment, and
other factors affecting the value of the investments of the Portfolio and the
Portfolio. Any of these occurrences could disrupt the operations of the
Portfolio and of the Portfolio’s service providers.
Option
Writing:
When
the Portfolio writes a covered call option, it assumes the risk that it must
sell the underlying security at an exercise price that may be lower than the
market price of the security, and it gives up the opportunity to profit from a
price increase in the underlying security above the exercise price. In addition,
the Portfolio continues to bear the risk of a decline in the value of the
underlying securities.
When
the Portfolio writes an index call option, it assumes the risk that it must pay
the purchaser of the option a cash payment equal to any
appreciation in the value of the index over the strike price of the call option
during the option’s life. While the amount of the Portfolio’s potential loss is
offset by the premium received when the option was written, the amount of the
loss is theoretically unlimited. When the Portfolio purchases a call or put
option and that option expires unexercised, the Portfolio will experience a loss
in the amount of the premium it paid.
Other
Investment Companies:
The
main risk of investing in other investment companies, including exchange-traded
funds (“ETFs”), is the risk that the value of the securities underlying an
investment company might decrease. Shares of investment companies that are
listed on an exchange may trade at a discount or premium from their net asset
value. You will pay a proportionate share of the expenses of those other
investment companies (including management fees, administration fees, and
custodial fees) in addition to the expenses of the Portfolio. The investment
policies of the other investment companies may not be the same as those of the
Portfolio; as a result, an investment in the other investment companies may be
subject to additional or different risks than those to which the Portfolio is
typically subject.
Real
Estate Companies and Real Estate Investment Trusts (“REITs”): Investing in real estate companies
and REITs may subject the Portfolio to risks similar to those associated with
the direct ownership of real estate, including losses from casualty or
condemnation, changes in local and general economic conditions, supply and
demand, market interest rates, zoning laws, regulatory limitations on rents,
property taxes, environmental problems, overbuilding, high foreclosure rates and
operating expenses in addition to terrorist attacks, wars, or other acts that
destroy real property. Some REITs may invest in a limited number of properties,
in a narrow geographic area or in a single property type, which increases the
risk that the Portfolio could be unfavorably affected by the poor performance of
a single investment or investment type. These companies are also sensitive to
factors such as changes in real estate values and property taxes, market
interest rates, cash flow of underlying real estate assets, supply and demand,
and the management skill and creditworthiness of the issuer. Borrowers could
default on or sell investments the REIT holds, which could reduce the cash flow
needed to make distributions to investors. In addition,
Voya Growth
and Income Portfolio
23
REITs
may also be affected by tax and regulatory requirements in that a REIT may not
qualify for favorable tax treatment or regulatory
exemptions. REITs require specialized management and pay management expenses.
The Portfolio will indirectly bear its proportionate share of expenses,
including management fees, paid by each REIT in which it invests.
Securities
Lending:
Securities lending
involves two primary risks: “ investment risk ” and “ borrower default risk. ”
When lending securities, the Portfolio will receive cash or U.S. government
securities as collateral. Investment risk is the risk that the Portfolio will
lose money from the investment of the cash collateral received from the
borrower. Borrower default risk is the risk that the Portfolio will lose money
due to the failure of a borrower to return a borrowed security. Securities
lending may result in leverage. The use of leverage may exaggerate any increase
or decrease in the net asset value, causing the Portfolio to be more volatile.
The use of leverage may increase expenses and increase the impact of the
Portfolio’s other risks.
Value
Investing:
Securities that
appear to be undervalued may never appreciate to the extent expected. Further,
because the prices of value-oriented securities tend to correlate more closely
with economic cycles than growth-oriented securities, they generally are more
sensitive to changing economic conditions, such as changes in market interest
rates, corporate earnings and industrial production. The manager may be wrong in
its assessment of a company’s value and the securities the Portfolio holds may
not reach their full values. A particular risk of the Portfolio’s value approach
is that some holdings may not recover and provide the capital growth anticipated
or a security judged to be undervalued may actually be appropriately priced. The
market may not favor value-oriented securities and may not favor equities at
all. During those periods, the Portfolio’s relative performance may suffer.
There is a risk that funds that invest in value-oriented stocks may underperform
other funds that invest more broadly.
An
investment in the Portfolio is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation, the
Federal Reserve Board or any other government agency.
Performance
Information
The
following information is intended to help you understand the risks of investing
in the Portfolio. The following bar
chart shows the changes in the Portfolio's performance from year to year, and
the table compares the Portfolio's performance to the performance of a
broad-based securities market index/indices for the same period. The Portfolio's
performance information reflects applicable
fee waivers and/or expense limitations in effect during the period presented.
Absent such fee waivers/expense limitations, if any, performance would have been
lower.
The bar chart shows the performance of the Portfolio's Class ADV shares. Performance for
other share classes would differ to the extent they have differences in their
fees and expenses.
Performance
shown in the bar chart and in the Average Annual Total Returns table does not
include insurance-related charges imposed under a
Variable Contract or expenses related to a Qualified Plan. If these charges or
expenses were included, performance would be lower. Thus, you should not compare
the Portfolio's performance directly with the performance information of other
investment products without taking into account all insurance-related charges
and expenses payable under your Variable Contract or Qualified Plan.
The
Portfolio's past performance is no guarantee of future results.
Calendar
Year Total Returns Class
ADV
(as of December 31 of each year)
(as of December 31 of each year)
|
Best
quarter: |
2nd Quarter
2020 |
20.06% |
|
Worst
quarter: |
1st Quarter
2020 |
-21.34% |
Voya Growth
and Income Portfolio
24
Average
Annual Total Returns %
(for the periods ended December 31, 2021)
(for the periods ended December 31, 2021)
|
|
|
1
Yr |
5
Yrs |
10
Yrs |
Since
Inception |
Inception
Date |
|
Class
ADV |
% |
28.41 |
16.99 |
14.53 |
N/A |
12/20/06 |
|
S&P
500® Index1 |
% |
28.71 |
18.47 |
16.55 |
N/A |
|
|
Class
I |
% |
29.00 |
17.52 |
15.05 |
N/A |
12/31/79 |
|
S&P
500® Index1 |
% |
28.71 |
18.47 |
16.55 |
N/A |
|
|
Class
S |
% |
28.72 |
17.23 |
14.76 |
N/A |
06/11/03 |
|
S&P
500® Index1 |
% |
28.71 |
18.47 |
16.55 |
N/A |
|
|
Class
S2 |
% |
28.52 |
17.06 |
14.59 |
N/A |
02/27/09 |
|
S&P
500® Index1 |
% |
28.71 |
18.47 |
16.55 |
N/A |
|
1
The index
returns do not reflect deductions for fees, expenses, or
taxes.
Portfolio
Management
|
Investment
Adviser |
Sub-Adviser |
|
Voya
Investments, LLC |
Voya Investment
Management Co. LLC |
|
Portfolio
Managers |
|
|
Vincent
Costa, CFA
Portfolio
Manager (since 06/13) |
James
Dorment, CFA
Portfolio
Manager (since 12/15) |
|
Gregory
Wachsman, CFA
Portfolio
Manager (since 05/21) |
|
Purchase
and Sale of Portfolio Shares
Shares
of the Portfolio are not offered directly to the public. Purchase and sale of
shares may be made only by separate accounts of
insurance companies serving as investment options under Variable Contracts or by
Qualified Plans, custodian accounts, and certain investment advisers and their
affiliates, other investment companies, or permitted investors. Please refer to
the prospectus for the appropriate insurance company separate account,
investment company, or your plan documents for information on how to direct
investments in, or sale from, an investment option corresponding to the
Portfolio and any fees that may apply. Participating insurance companies and
certain other designated organizations are authorized to receive purchase orders
on the Portfolio's behalf.
Tax
Information
Distributions
made by the Portfolio to a Variable Contract or Qualified Plan, and exchanges
and redemptions of Portfolio shares made by a Variable
Contract or Qualified Plan, ordinarily do not cause the corresponding contract
holder or plan participant to recognize income or gain for federal income tax
purposes. See the contract prospectus or the governing documents of your
Qualified Plan for information regarding the federal income tax treatment of the
distributions to your Variable Contract or Qualified Plan and the holders of the
contracts or plan participants.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you invest in the Portfolio through a Variable Contract issued by an insurance
company or through a Qualified Plan that, in turn, was purchased
or serviced through an insurance company, broker-dealer or other financial
intermediary, the Portfolio and its adviser or distributor or their affiliates
may: (1) make payments to the insurance company issuer of the Variable Contract
or to the company servicing the Qualified Plan; and (2) make payments to the
insurance company, broker-dealer or other financial intermediary. These payments
may create a conflict of interest by: (1) influencing the insurance company or
the company servicing the Qualified Plan to make the Portfolio available as an
investment option for the Variable Contract or the Qualified Plan; or (2) by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Variable Contract or the pension servicing agent and/or the
Portfolio over other options. Ask your salesperson or Qualified Plan
administrator or visit your financial intermediary's website for more
information.
Voya Growth
and Income Portfolio
25
Voya Index
Plus LargeCap Portfolio
Investment
Objective
The
Portfolio seeks to outperform the total return performance of the S&P
500® Index (“Index”)
while maintaining a market level of risk.
Fees
and Expenses of the Portfolio
The
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Portfolio. You
may pay other fees and expenses such as fees and expenses imposed under your
variable annuity contracts or variable life insurance policies (“Variable
Contract”) or a qualified pension or retirement plan (“Qualified Plan”), which
are not reflected in the tables and examples below. If these fees or
expenses were included in the table, the Portfolio’s expenses would be higher.
For more information on these charges, please refer to the documents governing
your Variable Contract or consult your plan administrator.
Annual
Portfolio Operating Expenses
Expenses you pay each year as a % of the value of your investment
Expenses you pay each year as a % of the value of your investment
|
Class |
|
ADV |
I |
S |
S21
|
|
Management
Fees |
% |
0.45 |
0.45 |
0.45 |
0.45 |
|
Distribution
and/or Shareholder Services (12b-1) Fees |
% |
0.50 |
None |
0.25 |
0.40 |
|
Other
Expenses |
% |
0.12 |
0.12 |
0.12 |
0.12 |
|
Total
Annual Portfolio Operating Expenses |
% |
1.07 |
0.57 |
0.82 |
0.97 |
|
Waivers
and Reimbursements2 |
% |
(0.02) |
(0.02) |
(0.02) |
(0.02) |
|
Total
Annual Portfolio Operating Expenses
after
Waivers and Reimbursements |
% |
1.05 |
0.55 |
0.80 |
0.95 |
1
Based on Class
I shares’ expenses adjusted for contractual differences in fees paid by the
applicable share classes.
2
The adviser is contractually
obligated to limit expenses to 1.05%, 0.55%, 0.80%, and 0.95% for Class ADV,
Class I, Class S, and Class S2 shares, respectively, through May 1, 2023. The limitation does not extend to
interest, taxes, investment-related costs, leverage expenses, extraordinary
expenses, and Acquired Fund Fees and Expenses. This limitation is subject to
possible recoupment by the adviser within 36 months of the waiver or
reimbursement. Termination or modification of this obligation requires approval
by the Portfolio’s board.
Expense
Example
The
Example is intended to help you compare the cost of investing in shares of the
Portfolio with the costs of investing in other mutual funds.
The Example does not reflect expenses and charges which are, or may be, imposed
under your Variable Contract or Qualified Plan. The Example assumes that you
invest $10,000 in the Portfolio for the time periods indicated. The Example also
assumes that your investment had a 5% return each year and that the Portfolio's
operating expenses remain the same. The Example
reflects applicable expense limitation agreements and/or waivers in effect, if
any, for the one-year period and the
first year of the three-, five-, and ten-year periods. Although your
actual costs may be higher or lower, based on these
assumptions your costs would be:
|
Class |
|
|
1
Yr |
3
Yrs |
5
Yrs |
10
Yrs |
|
|
|
|
|
|
|
ADV |
|
$ |
107 |
338 |
588 |
1,304 |
|
|
|
|
|
|
|
I |
|
$ |
56 |
181 |
316 |
712 |
|
|
|
|
|
|
|
S |
|
$ |
82 |
260 |
453 |
1,012 |
|
|
|
|
|
|
|
S2 |
|
$ |
97 |
307 |
534 |
1,188 |
|
|
|
|
|
|
Portfolio
Turnover
The
Portfolio pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher transaction
costs. These costs, which are not reflected in Annual Portfolio Operating
Expenses or in the Expense Example, affect the Portfolio's
performance.
During the most recent fiscal year,
the Portfolio's portfolio turnover rate was 60% of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Portfolio invests at least 80% of its net assets
(plus borrowings for investment purposes) in securities of
large-capitalization companies included in the Index. The Portfolio will provide
shareholders with at least 60 days' prior notice of any change in this
investment policy.
26
Voya Index
Plus LargeCap Portfolio
The Index is a
stock market index comprised of common stocks of 500 of the largest companies
traded in the United States and selected by S&P Global
Ratings. For this Portfolio, the sub-adviser (“Sub-Adviser”) defines
large-capitalization companies as companies that are included in the Index at
the time of purchase and that have a market capitalization of at least $3
billion. The market capitalization of companies within the Index will change
with market conditions. The market capitalization of companies in the Index as
of December 31, 2021 ranged from $6.5 billion to $2.9 trillion.
The
Portfolio may invest in derivative instruments including, but not limited to,
index futures. The Portfolio typically uses derivatives as a
substitute for purchasing securities included in the Index or for the purpose of
maintaining equity market exposure on its cash balance.
The
Portfolio may invest in other investment companies, including exchange-traded
funds, to the extent permitted under the Investment Company
Act of 1940, as amended, and the rules, regulations, and exemptive orders
thereunder (“1940 Act”).
The Portfolio may
also invest in real estate-related securities, including real estate investment
trusts.
In
managing the Portfolio, the Sub-Adviser attempts to achieve the Portfolio's
objective by overweighting those stocks that the Sub-Adviser
believes will outperform the Index, and underweighting (or avoiding altogether)
those stocks in the Index that the Sub-Adviser believes will underperform the
Index. In determining stock weightings, the Sub-Adviser uses both internally
developed quantitative computer models and fundamental stock research to
evaluate various criteria, such as the financial strength of each company and
its potential for strong, sustained earnings growth. Although the Portfolio will
not hold all the stocks in the Index, the Sub-Adviser expects that there will be
a close correlation between the performance of the Portfolio and that of the
Index in both rising and falling markets as the Portfolio is designed to have
risk characteristics (e.g., beta, size,
volatility) that approximate those of the Index.
In evaluating
investments for the Portfolio, the Sub-Adviser normally expects to take into
account environmental, social, and governance (“ESG”) factors to
determine whether any or all of those factors might have a material effect on
the value, risks, or prospects of a company. The Sub-Adviser intends to rely
primarily on factors identified through its proprietary empirical research as
material to a particular company or the industry in which it operates and on
third-party evaluations of a company’s ESG standing. The Sub-Adviser may give
environmental, social, and governance factors equal consideration or may focus
on one or more of those factors as the Sub-Adviser considers appropriate. The
Sub-Adviser may consider specific ESG metrics or a company’s progress or lack of
progress toward meeting ESG targets. ESG factors will be only one consideration
in the Sub-Adviser’s evaluation of any potential investment, and the effect, if
any, of ESG factors on the Sub-Adviser’s decision whether to invest in any case
will vary depending on the judgment of the Sub-Adviser.
The
Sub-Adviser may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into opportunities
believed to be more promising, among others.
The Portfolio
may lend portfolio securities on a short-term or long-term basis, up to
33 1∕3% of its total
assets.
Principal
Risks
You
could lose money on an investment in the Portfolio. Any of the
following risks, among others, could affect Portfolio performance or cause the
Portfolio to lose money or to underperform market averages of other
funds.
Company:
The
price of a company’s stock could decline or underperform for many reasons
including, among others, poor management, financial problems, reduced demand for
company goods or services, regulatory fines and judgments, or business
challenges. If a company declares bankruptcy or becomes insolvent, its stock
could become worthless.
Derivative
Instruments:
Derivative
instruments are subject to a number of risks, including the risk of changes in
the market price of the underlying securities, credit risk with respect to the
counterparty, risk of loss due to changes in market interest rates and liquidity
and volatility risk. The amounts required to purchase certain derivatives may be
small relative to the magnitude of exposure assumed by the Portfolio. Therefore,
the purchase of certain derivatives may have an economic leveraging effect on
the Portfolio and exaggerate any increase or decrease in the net asset value.
Derivatives may not perform as expected, so the Portfolio may not realize the
intended benefits. When used for hedging purposes, the change in value of a
derivative may not correlate as expected with the currency, security or other
risk being hedged. When used as an alternative or substitute for direct cash
investment, the return provided by the derivative may not provide the same
return as direct cash investment. In addition, given their complexity,
derivatives expose the Portfolio to the risk of improper valuation.
Environmental,
Social and/or Governance (strategy): The Sub-Adviser’s consideration of
environmental, social and/or governance (“ESG”) factors in selecting investments
for the Portfolio may cause it to forego other favorable investments that other
investors who do not consider similar factors or who evaluate them differently
might select. This may cause the Portfolio to underperform the stock market or
relevant benchmark as a whole or other funds that do not consider ESG factors or
that use such factors differently. The Sub-Adviser’s consideration of ESG
factors is qualitative and subjective by nature, and it is possible that it will
have an adverse effect on the Portfolio’s performance. In evaluating a company
or issuer in light of ESG factors, the
Voya Index
Plus LargeCap Portfolio
27
Sub-Adviser may
consider information and data obtained through voluntary or third-party
reporting that may be incomplete or inaccurate. It is possible the
companies or issuers identified through the Sub-Adviser’s consideration of ESG
factors will not operate as expected and will not exhibit positive ESG
characteristics to the extent the Sub-Adviser might have
anticipated.
Investment
Model:
A manager’s proprietary model may not adequately allow for existing or
unforeseen market factors or the interplay between such factors. Portfolios that
are actively managed, in whole or in part, according to a quantitative
investment model can perform
differently from the market as a whole based on the investment model and the
factors used in the analysis, the weight placed on each factor, and changes from
the factors’ historical trends. Mistakes in the construction and implementation
of the investment models (including, for example, data problems and/or software
issues) may create errors or limitations that might go undetected or are
discovered only after the errors or limitations have negatively impacted
performance. There is no guarantee that the use of these investment models will
result in effective investment decisions for the Portfolio.
Liquidity:
If a
security is illiquid, the Portfolio might be unable to sell the security at a
time when the Portfolio’s manager might wish to sell, or at all. Further, the
lack of an established secondary market may make it more difficult to value
illiquid securities, exposing the Portfolio to the risk that the price at which
it sells illiquid securities will be less than the price at which they were
valued when held by the Portfolio. The prices of illiquid securities may be more
volatile than more liquid investments. The risks associated with illiquid
securities may be greater in times of financial stress. The Portfolio could lose
money if it cannot sell a security at the time and price that would be most
beneficial to the Portfolio.
Market:
Stock
prices may be volatile or have reduced liquidity in response to real or
perceived impacts of factors including, but not limited to, economic conditions,
changes in market interest rates, and political events. Stock markets tend to be
cyclical, with periods when stock prices generally rise and periods when stock
prices generally decline. Any given stock market segment may remain out of favor
with investors for a short or long period of time, and stocks as an asset class
may underperform bonds or other asset classes during some periods. Additionally,
legislative, regulatory or tax policies or developments in these areas may
adversely impact the investment techniques available to a manager, add to costs
and impair the ability of the Portfolio to achieve its investment
objectives.
Market
Capitalization:
Stocks
fall into three broad market capitalization categories - large, mid, and small.
Investing primarily in one category carries the risk that, due to current market
conditions, that category may be out of favor with investors. If valuations of
large-capitalization companies appear to be greatly out of proportion to the
valuations of mid- or small-capitalization companies, investors may migrate to
the stocks of mid- and small-sized companies causing a fund that invests in
these companies to increase in value more rapidly than a fund that invests in
larger companies. Investing in mid- and small-capitalization companies may be
subject to special risks associated with narrower product lines, more limited
financial resources, smaller management groups, more limited publicly available
information, and a more limited trading market for their stocks as compared with
larger companies. As a result, stocks of mid- and small-capitalization companies
may be more volatile and may decline significantly in market
downturns.
Market
Disruption and Geopolitical: The Portfolio is subject to the
risk that geopolitical events will disrupt securities markets and adversely
affect global economies and markets. Due to the increasing interdependence among
global economies and markets, conditions in one country, market, or region might
adversely impact markets, issuers and/or foreign exchange rates in other
countries, including the U.S. Wars, terrorism, global health crises and
pandemics, and other geopolitical events have led, and in the future may lead,
to increased market volatility and may have adverse short- or long-term effects
on U.S. and world economies and markets generally. For example, the COVID-19
pandemic has resulted, and may continue to result, in significant market
volatility, exchange trading suspensions and closures, declines in global
financial markets, higher default rates, and a substantial economic downturn in
economies throughout the world. Natural and environmental disasters and systemic
market dislocations are also highly disruptive to economies and markets. In
addition, military action by Russia in Ukraine could adversely affect global
energy and financial markets and therefore could affect the value of a
Portfolio’s investments, including beyond a Portfolio’s direct exposure to
Russian issuers or nearby geographic regions. The extent and duration of the
military action, sanctions and resulting market disruptions are impossible to
predict and could be substantial. Those events as well as other changes in
non-U.S. and domestic economic, social, and political conditions also could
adversely affect individual issuers or related groups of issuers, securities
markets, interest rates, credit ratings, inflation, investor sentiment, and
other factors affecting the value of the investments of the Portfolio and the
Portfolio. Any of these occurrences could disrupt the operations of the
Portfolio and of the Portfolio’s service providers.
Other
Investment Companies:
The
main risk of investing in other investment companies, including exchange-traded
funds (“ETFs”), is the risk that the value of the securities underlying an
investment company might decrease. Shares of investment companies that are
listed on an exchange may trade at a discount or premium from their net asset
value. You will pay a proportionate share of the expenses of those other
investment companies (including management fees, administration fees,
Voya Index
Plus LargeCap Portfolio
28
and
custodial fees) in addition to the expenses of the Portfolio. The investment
policies of the other investment companies may not be the same
as those of the Portfolio; as a result, an investment in the other investment
companies may be subject to additional or different risks than those to which
the Portfolio is typically subject.
Real
Estate Companies and Real Estate Investment Trusts (“REITs”): Investing in real estate companies
and REITs may subject the Portfolio to risks similar to those associated with
the direct ownership of real estate, including losses from casualty or
condemnation, changes in local and general economic conditions, supply and
demand, market interest rates, zoning laws, regulatory limitations on rents,
property taxes, environmental problems, overbuilding, high foreclosure rates and
operating expenses in addition to terrorist attacks, wars, or other acts that
destroy real property. Some REITs may invest in a limited number of properties,
in a narrow geographic area or in a single property type, which increases the
risk that the Portfolio could be unfavorably affected by the poor performance of
a single investment or investment type. These companies are also sensitive to
factors such as changes in real estate values and property taxes, market
interest rates, cash flow of underlying real estate assets, supply and demand,
and the management skill and creditworthiness of the issuer. Borrowers could
default on or sell investments the REIT holds, which could reduce the cash flow
needed to make distributions to investors. In addition, REITs may also be
affected by tax and regulatory requirements in that a REIT may not qualify for
favorable tax treatment or regulatory exemptions. REITs require specialized
management and pay management expenses. The Portfolio will indirectly bear its
proportionate share of expenses, including management fees, paid by each REIT in
which it invests.
Securities
Lending:
Securities lending
involves two primary risks: “ investment risk ” and “ borrower default risk. ”
When lending securities, the Portfolio will receive cash or U.S. government
securities as collateral. Investment risk is the risk that the Portfolio will
lose money from the investment of the cash collateral received from the
borrower. Borrower default risk is the risk that the Portfolio will lose money
due to the failure of a borrower to return a borrowed security. Securities
lending may result in leverage. The use of leverage may exaggerate any increase
or decrease in the net asset value, causing the Portfolio to be more volatile.
The use of leverage may increase expenses and increase the impact of the
Portfolio’s other risks.
An
investment in the Portfolio is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation, the
Federal Reserve Board or any other government agency.
Performance
Information
The
following information is intended to help you understand the risks of investing
in the Portfolio. The following bar
chart shows the changes in the Portfolio's performance from year to year, and
the table compares the Portfolio's performance to the performance of a
broad-based securities market index/indices for the same period. The Portfolio's
performance information reflects applicable
fee waivers and/or expense limitations in effect during the period presented.
Absent such fee waivers/expense limitations, if any, performance would have been
lower.
The bar chart shows the performance of the Portfolio's Class S
shares. Performance for
other share classes would differ to the extent they have differences in their
fees and expenses. The Class
ADV
shares performance shown for the period prior to their inception date is the
performance of Class I shares adjusted for any differences in the expenses
between the classes.
Because
Class S2 shares of the
Portfolio had not commenced operations as of the calendar year ended December
31, 2021, no performance information for
Class S2 shares is provided below.
Performance
shown in the bar chart and in the Average Annual Total Returns table does not
include insurance-related charges imposed under a
Variable Contract or expenses related to a Qualified Plan. If these charges or
expenses were included, performance would be lower. Thus, you should not compare
the Portfolio's performance directly with the performance information of other
investment products without taking into account all insurance-related charges
and expenses payable under your Variable Contract or Qualified Plan.
The
Portfolio's past performance is no guarantee of future results.
Calendar
Year Total Returns Class
S
(as of December 31 of each year)
(as of December 31 of each year)
|
Best
quarter: |
2nd Quarter
2020 |
21.28% |
|
Worst
quarter: |
1st Quarter
2020 |
-21.55% |
Voya Index
Plus LargeCap Portfolio
29
Average
Annual Total Returns %
(for the periods ended December 31, 2021)
(for the periods ended December 31, 2021)
|
|
|
1
Yr |
5
Yrs |
10
Yrs |
Since
Inception |
Inception
Date |
|
Class
ADV |
% |
28.62 |
17.17 |
15.29 |
N/A |
08/24/18 |
|
S&P
500® Index1 |
% |
28.71 |
18.47 |
16.55 |
N/A |
|
|
Class
I |
% |
29.25 |
17.74 |
15.86 |
N/A |
09/16/96 |
|
S&P
500® Index1 |
% |
28.71 |
18.47 |
16.55 |
N/A |
|
|
Class
S |
% |
28.94 |
17.45 |
15.57 |
N/A |
07/16/01 |
|
S&P
500® Index1 |
% |
28.71 |
18.47 |
16.55 |
N/A |
|
1
The index
returns do not reflect deductions for fees, expenses, or
taxes.
Portfolio
Management
|
Investment
Adviser |
Sub-Adviser |
|
Voya
Investments, LLC |
Voya Investment
Management Co. LLC |
|
Portfolio
Managers |
|
|
Vincent
Costa, CFA
Portfolio
Manager (since 05/06) |
Peg
DiOrio, CFA
Portfolio
Manager (since 02/19) |
|
Steve
Wetter
Portfolio
Manager (since 09/13) |
Kai
Yee Wong
Portfolio
Manager (since 02/19) |
Purchase
and Sale of Portfolio Shares
Shares
of the Portfolio are not offered directly to the public. Purchase and sale of
shares may be made only by separate accounts of
insurance companies serving as investment options under Variable Contracts or by
Qualified Plans, custodian accounts, and certain investment advisers and their
affiliates, other investment companies, or permitted investors. Please refer to
the prospectus for the appropriate insurance company separate account,
investment company, or your plan documents for information on how to direct
investments in, or sale from, an investment option corresponding to the
Portfolio and any fees that may apply. Participating insurance companies and
certain other designated organizations are authorized to receive purchase orders
on the Portfolio's behalf.
Class S2 shares of
the Portfolio are not currently offered.
Tax
Information
Distributions
made by the Portfolio to a Variable Contract or Qualified Plan, and exchanges
and redemptions of Portfolio shares made by a Variable
Contract or Qualified Plan, ordinarily do not cause the corresponding contract
holder or plan participant to recognize income or gain for federal income tax
purposes. See the contract prospectus or the governing documents of your
Qualified Plan for information regarding the federal income tax treatment of the
distributions to your Variable Contract or Qualified Plan and the holders of the
contracts or plan participants.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you invest in the Portfolio through a Variable Contract issued by an insurance
company or through a Qualified Plan that, in turn, was purchased
or serviced through an insurance company, broker-dealer or other financial
intermediary, the Portfolio and its adviser or distributor or their affiliates
may: (1) make payments to the insurance company issuer of the Variable Contract
or to the company servicing the Qualified Plan; and (2) make payments to the
insurance company, broker-dealer or other financial intermediary. These payments
may create a conflict of interest by: (1) influencing the insurance company or
the company servicing the Qualified Plan to make the Portfolio available as an
investment option for the Variable Contract or the Qualified Plan; or (2) by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Variable Contract or the pension servicing agent and/or the
Portfolio over other options. Ask your salesperson or Qualified Plan
administrator or visit your financial intermediary's website for more
information.
Voya Index
Plus LargeCap Portfolio
30
Voya Index
Plus MidCap Portfolio
Investment
Objective
The
Portfolio seeks to outperform the total return performance of the S&P MidCap
400® Index (“Index”)
while maintaining a market level of risk.
Fees
and Expenses of the Portfolio
The
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Portfolio. You
may pay other fees and expenses such as fees and expenses imposed under your
variable annuity contracts or variable life insurance policies (“Variable
Contract”) or a qualified pension or retirement plan (“Qualified Plan”), which
are not reflected in the tables and examples below. If these fees or
expenses were included in the table, the Portfolio’s expenses would be higher.
For more information on these charges, please refer to the documents governing
your Variable Contract or consult your plan administrator.
Annual
Portfolio Operating Expenses
Expenses you pay each year as a % of the value of your investment
Expenses you pay each year as a % of the value of your investment
|
Class |
|
I |
S |
S21
|
|
Management
Fees |
% |
0.50 |
0.50 |
0.50 |
|
Distribution
and/or Shareholder Services (12b-1) Fees |
% |
None |
0.25 |
0.40 |
|
Other
Expenses |
% |
0.18 |
0.18 |
0.18 |
|
Total
Annual Portfolio Operating Expenses |
% |
0.68 |
0.93 |
1.08 |
|
Waivers
and Reimbursements2 |
% |
(0.08) |
(0.08) |
(0.08) |
|
Total
Annual Portfolio Operating Expenses
after
Waivers and Reimbursements |
% |
0.60 |
0.85 |
1.00 |
1
Based on Class
I shares’ expenses adjusted for contractual differences in fees paid by the
applicable share classes.
2
The adviser is contractually
obligated to limit expenses to 0.60%, 0.85%, and 1.00% for Class I, Class S, and
Class S2 shares, respectively, through May 1, 2023. The limitation does not
extend to
interest, taxes, investment-related costs, leverage expenses, extraordinary
expenses, and Acquired Fund Fees and Expenses. This limitation is subject to
possible recoupment by the adviser within 36 months of the waiver or
reimbursement. Termination or modification of this obligation requires approval
by the Portfolio’s board.
Expense
Example
The
Example is intended to help you compare the cost of investing in shares of the
Portfolio with the costs of investing in other mutual funds.
The Example does not reflect expenses and charges which are, or may be, imposed
under your Variable Contract or Qualified Plan. The Example assumes that you
invest $10,000 in the Portfolio for the time periods indicated. The Example also
assumes that your investment had a 5% return each year and that the Portfolio's
operating expenses remain the same. The Example
reflects applicable expense limitation agreements and/or waivers in effect, if
any, for the one-year period and the
first year of the three-, five-, and ten-year periods. Although your
actual costs may be higher or lower, based on these
assumptions your costs would be:
|
Class |
|
|
1
Yr |
3
Yrs |
5
Yrs |
10
Yrs |
|
|
|
|
|
|
|
I |
|
$ |
61 |
210 |
371 |
839 |
|
|
|
|
|
|
|
S |
|
$ |
87 |
288 |
507 |
1,136 |
|
|
|
|
|
|
|
S2 |
|
$ |
102 |
336 |
588 |
1,310 |
|
|
|
|
|
|
Portfolio
Turnover
The
Portfolio pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher transaction
costs. These costs, which are not reflected in Annual Portfolio Operating
Expenses or in the Expense Example, affect the Portfolio's
performance.
During the most recent fiscal year,
the Portfolio's portfolio turnover rate was 63% of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Portfolio invests at least 80% of its net assets
(plus borrowings for investment purposes) in securities of
mid-capitalization companies included in the Index. The Portfolio will provide
shareholders with at least 60 days' prior notice of any change in this
investment policy.
31
Voya Index
Plus MidCap Portfolio
The Index is a
stock market index comprised of common stocks of 400 mid-capitalization
companies traded in the United States and selected by S&P
Global Ratings. For this Portfolio, the sub-adviser (“Sub-Adviser”) defines
mid-capitalization companies as companies that are included in the Index at the
time of purchase. The market capitalization of companies within the Index will
change with market conditions. The market capitalization of companies in the
Index as of December 31, 2021 ranged from $1.7 billion to $33.7
billion.
The
Portfolio may invest in derivative instruments including, but not limited to,
index futures. The Portfolio typically uses derivatives as a
substitute for purchasing securities included in the Index or for the purpose of
maintaining equity market exposure on its cash balance.
The Portfolio may
also invest in real estate-related securities, including real estate investment
trusts.
The
Portfolio may invest in other investment companies, including exchange-traded
funds, to the extent permitted under the Investment Company
Act of 1940, as amended, and the rules, regulations, and exemptive orders
thereunder (“1940 Act”).
In
managing the Portfolio, the Sub-Adviser attempts to achieve the Portfolio's
objective by overweighting those stocks that the Sub-Adviser
believes will outperform the Index, and underweighting (or avoiding altogether)
those stocks in the Index that the Sub-Adviser believes will underperform the
Index. In determining stock weightings, the Sub-Adviser uses both internally
developed quantitative computer models and fundamental stock research to
evaluate various criteria, such as the financial strength of each issuer and its
potential for strong, sustained earnings growth. Although the Portfolio will not
hold all of the stocks in the Index, the Sub-Adviser expects that there will be
a close correlation between the performance of the Portfolio and that of the
Index in both rising and falling markets as the Portfolio is designed to have
risk characteristics (e.g., beta, size,
volatility) which approximate those of the Index.
In evaluating
investments for the Portfolio, the Sub-Adviser normally expects to take into
account environmental, social, and governance (“ESG”) factors to
determine whether any or all of those factors might have a material effect on
the value, risks, or prospects of a company. The Sub-Adviser intends to rely
primarily on factors identified through its proprietary empirical research as
material to a particular company or the industry in which it operates and on
third-party evaluations of a company’s ESG standing. The Sub-Adviser may give
environmental, social, and governance factors equal consideration or may focus
on one or more of those factors as the Sub-Adviser considers appropriate. The
Sub-Adviser may consider specific ESG metrics or a company’s progress or lack of
progress toward meeting ESG targets. ESG factors will be only one consideration
in the Sub-Adviser’s evaluation of any potential investment, and the effect, if
any, of ESG factors on the Sub-Adviser’s decision whether to invest in any case
will vary depending on the judgment of the Sub-Adviser.
The
Sub-Adviser may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into opportunities
believed to be more promising, among others.
The Portfolio
may lend portfolio securities on a short-term or long-term basis, up to
33 1∕3% of its total
assets.
Principal
Risks
You
could lose money on an investment in the Portfolio. Any of the
following risks, among others, could affect Portfolio performance or cause the
Portfolio to lose money or to underperform market averages of other
funds.
Company:
The
price of a company’s stock could decline or underperform for many reasons
including, among others, poor management, financial problems, reduced demand for
company goods or services, regulatory fines and judgments, or business
challenges. If a company declares bankruptcy or becomes insolvent, its stock
could become worthless.
Derivative
Instruments:
Derivative
instruments are subject to a number of risks, including the risk of changes in
the market price of the underlying securities, credit risk with respect to the
counterparty, risk of loss due to changes in market interest rates and liquidity
and volatility risk. The amounts required to purchase certain derivatives may be
small relative to the magnitude of exposure assumed by the Portfolio. Therefore,
the purchase of certain derivatives may have an economic leveraging effect on
the Portfolio and exaggerate any increase or decrease in the net asset value.
Derivatives may not perform as expected, so the Portfolio may not realize the
intended benefits. When used for hedging purposes, the change in value of a
derivative may not correlate as expected with the currency, security or other
risk being hedged. When used as an alternative or substitute for direct cash
investment, the return provided by the derivative may not provide the same
return as direct cash investment. In addition, given their complexity,
derivatives expose the Portfolio to the risk of improper valuation.
Environmental,
Social and/or Governance (strategy): The Sub-Adviser’s consideration of
environmental, social and/or governance (“ESG”) factors in selecting investments
for the Portfolio may cause it to forego other favorable investments that other
investors who do not consider similar factors or who evaluate them differently
might select. This may cause the Portfolio to underperform the stock market or
relevant benchmark as a whole or other funds that do not consider ESG factors or
that use such factors differently. The Sub-Adviser’s consideration of ESG
factors is qualitative and subjective by nature, and it is possible that it will
have an adverse effect on the Portfolio’s performance. In evaluating a company
or issuer in light of ESG factors, the
Voya Index
Plus MidCap Portfolio
32
Sub-Adviser may
consider information and data obtained through voluntary or third-party
reporting that may be incomplete or inaccurate. It is possible the
companies or issuers identified through the Sub-Adviser’s consideration of ESG
factors will not operate as expected and will not exhibit positive ESG
characteristics to the extent the Sub-Adviser might have
anticipated.
Investment
Model:
A manager’s proprietary model may not adequately allow for existing or
unforeseen market factors or the interplay between such factors. Portfolios that
are actively managed, in whole or in part, according to a quantitative
investment model can perform
differently from the market as a whole based on the investment model and the
factors used in the analysis, the weight placed on each factor, and changes from
the factors’ historical trends. Mistakes in the construction and implementation
of the investment models (including, for example, data problems and/or software
issues) may create errors or limitations that might go undetected or are
discovered only after the errors or limitations have negatively impacted
performance. There is no guarantee that the use of these investment models will
result in effective investment decisions for the Portfolio.
Liquidity:
If a
security is illiquid, the Portfolio might be unable to sell the security at a
time when the Portfolio’s manager might wish to sell, or at all. Further, the
lack of an established secondary market may make it more difficult to value
illiquid securities, exposing the Portfolio to the risk that the price at which
it sells illiquid securities will be less than the price at which they were
valued when held by the Portfolio. The prices of illiquid securities may be more
volatile than more liquid investments. The risks associated with illiquid
securities may be greater in times of financial stress. The Portfolio could lose
money if it cannot sell a security at the time and price that would be most
beneficial to the Portfolio.
Market:
Stock
prices may be volatile or have reduced liquidity in response to real or
perceived impacts of factors including, but not limited to, economic conditions,
changes in market interest rates, and political events. Stock markets tend to be
cyclical, with periods when stock prices generally rise and periods when stock
prices generally decline. Any given stock market segment may remain out of favor
with investors for a short or long period of time, and stocks as an asset class
may underperform bonds or other asset classes during some periods. Additionally,
legislative, regulatory or tax policies or developments in these areas may
adversely impact the investment techniques available to a manager, add to costs
and impair the ability of the Portfolio to achieve its investment
objectives.
Market
Disruption and Geopolitical: The Portfolio is subject to the
risk that geopolitical events will disrupt securities markets and adversely
affect global economies and markets. Due to the increasing interdependence among
global economies and markets, conditions in one country, market, or region might
adversely impact markets, issuers and/or foreign exchange rates in other
countries, including the U.S. Wars, terrorism, global health crises and
pandemics, and other geopolitical events have led, and in the future may lead,
to increased market volatility and may have adverse short- or long-term effects
on U.S. and world economies and markets generally. For example, the COVID-19
pandemic has resulted, and may continue to result, in significant market
volatility, exchange trading suspensions and closures, declines in global
financial markets, higher default rates, and a substantial economic downturn in
economies throughout the world. Natural and environmental disasters and systemic
market dislocations are also highly disruptive to economies and markets. In
addition, military action by Russia in Ukraine could adversely affect global
energy and financial markets and therefore could affect the value of a
Portfolio’s investments, including beyond a Portfolio’s direct exposure to
Russian issuers or nearby geographic regions. The extent and duration of the
military action, sanctions and resulting market disruptions are impossible to
predict and could be substantial. Those events as well as other changes in
non-U.S. and domestic economic, social, and political conditions also could
adversely affect individual issuers or related groups of issuers, securities
markets, interest rates, credit ratings, inflation, investor sentiment, and
other factors affecting the value of the investments of the Portfolio and the
Portfolio. Any of these occurrences could disrupt the operations of the
Portfolio and of the Portfolio’s service providers.
Mid-Capitalization
Company:
Investments in
mid-capitalization companies may involve greater risk than is customarily
associated with larger, more established companies due to the greater business
risks of a limited operating history, smaller size, limited markets and
financial resources, narrow product lines, less management depth, and more
reliance on key personnel. Consequently, the securities of mid-capitalization
companies may have limited market stability and may be subject to more abrupt or
erratic market movements than securities of larger, more established growth
companies or the market averages in general.
Other
Investment Companies:
The
main risk of investing in other investment companies, including exchange-traded
funds (“ETFs”), is the risk that the value of the securities underlying an
investment company might decrease. Shares of investment companies that are
listed on an exchange may trade at a discount or premium from their net asset
value. You will pay a proportionate share of the expenses of those other
investment companies (including management fees, administration fees, and
custodial fees) in addition to the expenses of the Portfolio. The investment
policies of the other investment companies may not be the same as those of the
Portfolio; as a result, an investment in the other investment companies may be
subject to additional or different risks than those to which the Portfolio is
typically subject.
Real
Estate Companies and Real Estate Investment Trusts (“REITs”):
Investing in real
estate companies and REITs may subject the Portfolio to risks similar to those
associated with the direct ownership of real estate, including losses from
casualty or condemnation, changes in local and general economic conditions,
supply and demand, market interest rates, zoning laws,
Voya Index
Plus MidCap Portfolio
33
regulatory
limitations on rents, property taxes, and operating expenses in addition to
terrorist attacks, wars, or other acts that destroy
real property. Investments in REITs are affected by the management skill and
creditworthiness of the REIT. The Portfolio will indirectly bear its
proportionate share of expenses, including management fees, paid by each REIT in
which it invests.
Securities
Lending:
Securities lending
involves two primary risks: “ investment risk ” and “ borrower default risk. ”
When lending securities, the Portfolio will receive cash or U.S. government
securities as collateral. Investment risk is the risk that the Portfolio will
lose money from the investment of the cash collateral received from the
borrower. Borrower default risk is the risk that the Portfolio will lose money
due to the failure of a borrower to return a borrowed security. Securities
lending may result in leverage. The use of leverage may exaggerate any increase
or decrease in the net asset value, causing the Portfolio to be more volatile.
The use of leverage may increase expenses and increase the impact of the
Portfolio’s other risks.
An
investment in the Portfolio is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation, the
Federal Reserve Board or any other government agency.
Performance
Information
The
following information is intended to help you understand the risks of investing
in the Portfolio. The following bar
chart shows the changes in the Portfolio's performance from year to year, and
the table compares the Portfolio's performance to the performance of a
broad-based securities market index/indices for the same period. The Portfolio's
performance information reflects applicable
fee waivers and/or expense limitations in effect during the period presented.
Absent such fee waivers/expense limitations, if any, performance would have been
lower.
The bar chart shows the performance of the Portfolio's Class S
shares. Performance for
other share classes would differ to the extent they have differences in their
fees and expenses.
Because
Class S2 shares
of the Portfolio had not commenced operations as of the calendar year ended
December 31, 2021,
no performance
information for Class S2 shares is provided below.
Performance
shown in the bar chart and in the Average Annual Total Returns table does not
include insurance-related charges imposed under a
Variable Contract or expenses related to a Qualified Plan. If these charges or
expenses were included, performance would be lower. Thus, you should not compare
the Portfolio's performance directly with the performance information of other
investment products without taking into account all insurance-related charges
and expenses payable under your Variable Contract or Qualified Plan.
The
Portfolio's past performance is no guarantee of future results.
Calendar
Year Total Returns Class
S
(as of December 31 of each year)
(as of December 31 of each year)
|
Best
quarter: |
4th Quarter
2020 |
23.29% |
|
Worst
quarter: |
1st Quarter
2020 |
-31.77% |
Average
Annual Total Returns %
(for the periods ended December 31, 2021)
(for the periods ended December 31, 2021)
|
|
|
1
Yr |
5
Yrs |
10
Yrs |
Since
Inception |
Inception
Date |
|
Class
I |
% |
27.74 |
11.32 |
13.16 |
N/A |
12/16/97 |
|
S&P
MidCap 400® Index1 |
% |
24.76 |
13.09 |
14.20 |
N/A |
|
|
Class
S |
% |
27.49 |
11.06 |
12.88 |
N/A |
07/16/01 |
|
S&P
MidCap 400® Index1 |
% |
24.76 |
13.09 |
14.20 |
N/A |
|
1
The index
returns do not reflect deductions for fees, expenses, or
taxes.
Voya Index
Plus MidCap Portfolio
34
Portfolio
Management
|
Investment
Adviser |
Sub-Adviser |
|
Voya
Investments, LLC |
Voya Investment
Management Co. LLC |
|
Portfolio
Managers |
|
|
Vincent
Costa, CFA
Portfolio
Manager (since 05/06) |
Peg
DiOrio, CFA
Portfolio
Manager (since 02/19) |
|
Steve
Wetter
Portfolio
Manager (since 09/13) |
Kai
Yee Wong
Portfolio
Manager (since 05/16) |
Purchase
and Sale of Portfolio Shares
Shares
of the Portfolio are not offered directly to the public. Purchase and sale of
shares may be made only by separate accounts of
insurance companies serving as investment options under Variable Contracts or by
Qualified Plans, custodian accounts, and certain investment advisers and their
affiliates, other investment companies, or permitted investors. Please refer to
the prospectus for the appropriate insurance company separate account,
investment company, or your plan documents for information on how to direct
investments in, or sale from, an investment option corresponding to the
Portfolio and any fees that may apply. Participating insurance companies and
certain other designated organizations are authorized to receive purchase orders
on the Portfolio's behalf.
Class S2
shares of the Portfolio are not currently offered.
Tax
Information
Distributions
made by the Portfolio to a Variable Contract or Qualified Plan, and exchanges
and redemptions of Portfolio shares made by a Variable
Contract or Qualified Plan, ordinarily do not cause the corresponding contract
holder or plan participant to recognize income or gain for federal income tax
purposes. See the contract prospectus or the governing documents of your
Qualified Plan for information regarding the federal income tax treatment of the
distributions to your Variable Contract or Qualified Plan and the holders of the
contracts or plan participants.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you invest in the Portfolio through a Variable Contract issued by an insurance
company or through a Qualified Plan that, in turn, was purchased
or serviced through an insurance company, broker-dealer or other financial
intermediary, the Portfolio and its adviser or distributor or their affiliates
may: (1) make payments to the insurance company issuer of the Variable Contract
or to the company servicing the Qualified Plan; and (2) make payments to the
insurance company, broker-dealer or other financial intermediary. These payments
may create a conflict of interest by: (1) influencing the insurance company or
the company servicing the Qualified Plan to make the Portfolio available as an
investment option for the Variable Contract or the Qualified Plan; or (2) by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Variable Contract or the pension servicing agent and/or the
Portfolio over other options. Ask your salesperson or Qualified Plan
administrator or visit your financial intermediary's website for more
information.
Voya Index
Plus MidCap Portfolio
35
Voya Index
Plus SmallCap Portfolio
Investment
Objective
The
Portfolio seeks to outperform the total return performance of the S&P
SmallCap 600® Index (“Index”)
while maintaining a market level of risk.
Fees
and Expenses of the Portfolio
The
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Portfolio. You
may pay other fees and expenses such as fees and expenses imposed under your
variable annuity contracts or variable life insurance policies (“Variable
Contract”) or a qualified pension or retirement plan (“Qualified Plan”), which
are not reflected in the tables and examples below. If these fees or
expenses were included in the table, the Portfolio’s expenses would be higher.
For more information on these charges, please refer to the documents governing
your Variable Contract or consult your plan administrator.
Annual
Portfolio Operating Expenses
Expenses you pay each year as a % of the value of your investment
Expenses you pay each year as a % of the value of your investment
|
Class |
|
I |
S |
S21
|
|
Management
Fees |
% |
0.50 |
0.50 |
0.50 |
|
Distribution
and/or Shareholder Services (12b-1) Fees |
% |
None |
0.25 |
0.40 |
|
Other
Expenses |
% |
0.19 |
0.19 |
0.19 |
|
Total
Annual Portfolio Operating Expenses |
% |
0.69 |
0.94 |
1.09 |
|
Waivers
and Reimbursements2 |
% |
(0.09) |
(0.09) |
(0.09) |
|
Total
Annual Portfolio Operating Expenses
after
Waivers and Reimbursements |
% |
0.60 |
0.85 |
1.00 |
1
Based on Class
I shares’ expenses adjusted for contractual differences in fees paid by the
applicable share classes.
2
The adviser is contractually
obligated to limit expenses to 0.60%, 0.85%, and 1.00% for Class I, Class S, and
Class S2 shares, respectively, through May 1, 2023. The limitation does not
extend to
interest, taxes, investment-related costs, leverage expenses, extraordinary
expenses, and Acquired Fund Fees and Expenses. This limitation is subject to
possible recoupment by the adviser within 36 months of the waiver or
reimbursement. Termination or modification of this obligation requires approval
by the Portfolio’s board.
Expense
Example
The
Example is intended to help you compare the cost of investing in shares of the
Portfolio with the costs of investing in other mutual funds.
The Example does not reflect expenses and charges which are, or may be, imposed
under your Variable Contract or Qualified Plan. The Example assumes that you
invest $10,000 in the Portfolio for the time periods indicated. The Example also
assumes that your investment had a 5% return each year and that the Portfolio's
operating expenses remain the same. The Example
reflects applicable expense limitation agreements and/or waivers in effect, if
any, for the one-year period and the
first year of the three-, five-, and ten-year periods. Although your
actual costs may be higher or lower, based on these
assumptions your costs would be:
|
Class |
|
|
1
Yr |
3
Yrs |
5
Yrs |
10
Yrs |
|
|
|
|
|
|
|
I |
|
$ |
61 |
212 |
375 |
850 |
|
|
|
|
|
|
|
S |
|
$ |
87 |
291 |
511 |
1,146 |
|
|
|
|
|
|
|
S2 |
|
$ |
102 |
338 |
592 |
1,321 |
|
|
|
|
|
|
Portfolio
Turnover
The
Portfolio pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher transaction
costs. These costs, which are not reflected in Annual Portfolio Operating
Expenses or in the Expense Example, affect the Portfolio's
performance.
During the most recent fiscal year,
the Portfolio's portfolio turnover rate was 63% of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Portfolio invests at least 80% of its net assets
(plus borrowings for investment purposes) in securities of
small-capitalization companies included in the Index. The Portfolio will provide
shareholders with at least 60 days' prior notice of any change in this
investment policy.
36
Voya Index
Plus SmallCap Portfolio
The Index is a
stock market index comprised of common stocks of 600 small-capitalization
companies traded in the United States and selected by S&P
Global Ratings. For this Portfolio, the sub-adviser (“Sub-Adviser”) defines
small-capitalization companies as companies that are included in the Index at
the time of purchase. The market capitalization of companies within the Index
will change with market conditions. The market capitalization of companies in
the Index as of December 31, 2021 ranged from $208.2 million to $7.9
billion.
The
Portfolio may invest in derivative instruments including, but not limited to,
index futures. The Portfolio typically uses derivatives as a
substitute for purchasing securities included in the Index or for the purpose of
maintaining equity market exposure on its cash balance.
The Portfolio may
also invest in real estate-related securities including real estate investment
trusts.
The
Portfolio may invest in other investment companies, including exchange-traded
funds, to the extent permitted under the Investment Company
Act of 1940, as amended, and the rules, regulations, and exemptive orders
thereunder (“1940 Act”).
In
managing the Portfolio, the Sub-Adviser attempts to achieve the Portfolio's
objective by overweighting those stocks that the Sub-Adviser
believes will outperform the Index, and underweighting (or avoiding altogether)
those stocks in the Index that the Sub-Adviser believes will underperform the
Index. In determining stock weightings, the Sub-Adviser uses both internally
developed quantitative computer models and fundamental stock research to
evaluate various criteria, such as the financial strength of each issuer and its
potential for strong, sustained earnings growth. Although the Portfolio will not
hold all of the stocks in the Index, the Sub-Adviser expects that there will be
a close correlation between the performance of the Portfolio and that of the
Index in both rising and falling markets as the Portfolio is designed to have
risk characteristics (e.g., beta, size,
volatility) which approximate those of the Index.
In evaluating
investments for the Portfolio, the Sub-Adviser normally expects to take into
account environmental, social, and governance (“ESG”) factors to
determine whether any or all of those factors might have a material effect on
the value, risks, or prospects of a company. The Sub-Adviser intends to rely
primarily on factors identified through its proprietary empirical research as
material to a particular company or the industry in which it operates and on
third-party evaluations of a company’s ESG standing. The Sub-Adviser may give
environmental, social, and governance factors equal consideration or may focus
on one or more of those factors as the Sub-Adviser considers appropriate. The
Sub-Adviser may consider specific ESG metrics or a company’s progress or lack of
progress toward meeting ESG targets. ESG factors will be only one consideration
in the Sub-Adviser’s evaluation of any potential investment, and the effect, if
any, of ESG factors on the Sub-Adviser’s decision whether to invest in any case
will vary depending on the judgment of the Sub-Adviser.
The
Sub-Adviser may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into opportunities
believed to be more promising, among others.
The Portfolio
may lend portfolio securities on a short-term or long-term basis, up to
33 1∕3% of its total
assets.
Principal
Risks
You
could lose money on an investment in the Portfolio. Any of the
following risks, among others, could affect Portfolio performance or cause the
Portfolio to lose money or to underperform market averages of other
funds.
Company:
The
price of a company’s stock could decline or underperform for many reasons
including, among others, poor management, financial problems, reduced demand for
company goods or services, regulatory fines and judgments, or business
challenges. If a company declares bankruptcy or becomes insolvent, its stock
could become worthless.
Derivative
Instruments:
Derivative
instruments are subject to a number of risks, including the risk of changes in
the market price of the underlying securities, credit risk with respect to the
counterparty, risk of loss due to changes in market interest rates and liquidity
and volatility risk. The amounts required to purchase certain derivatives may be
small relative to the magnitude of exposure assumed by the Portfolio. Therefore,
the purchase of certain derivatives may have an economic leveraging effect on
the Portfolio and exaggerate any increase or decrease in the net asset value.
Derivatives may not perform as expected, so the Portfolio may not realize the
intended benefits. When used for hedging purposes, the change in value of a
derivative may not correlate as expected with the currency, security or other
risk being hedged. When used as an alternative or substitute for direct cash
investment, the return provided by the derivative may not provide the same
return as direct cash investment. In addition, given their complexity,
derivatives expose the Portfolio to the risk of improper valuation.
Environmental,
Social and/or Governance (strategy): The Sub-Adviser’s consideration of
environmental, social and/or governance (“ESG”) factors in selecting investments
for the Portfolio may cause it to forego other favorable investments that other
investors who do not consider similar factors or who evaluate them differently
might select. This may cause the Portfolio to underperform the stock market or
relevant benchmark as a whole or other funds that do not consider ESG factors or
that use such factors differently. The Sub-Adviser’s consideration of ESG
factors is qualitative and subjective by nature, and it is possible that it will
have an adverse effect on the Portfolio’s performance. In evaluating a company
or issuer in light of ESG factors, the
Voya Index
Plus SmallCap Portfolio
37
Sub-Adviser may
consider information and data obtained through voluntary or third-party
reporting that may be incomplete or inaccurate. It is possible the
companies or issuers identified through the Sub-Adviser’s consideration of ESG
factors will not operate as expected and will not exhibit positive ESG
characteristics to the extent the Sub-Adviser might have
anticipated.
Investment
Model:
A manager’s proprietary model may not adequately allow for existing or
unforeseen market factors or the interplay between such factors. Portfolios that
are actively managed, in whole or in part, according to a quantitative
investment model can perform
differently from the market as a whole based on the investment model and the
factors used in the analysis, the weight placed on each factor, and changes from
the factors’ historical trends. Mistakes in the construction and implementation
of the investment models (including, for example, data problems and/or software
issues) may create errors or limitations that might go undetected or are
discovered only after the errors or limitations have negatively impacted
performance. There is no guarantee that the use of these investment models will
result in effective investment decisions for the Portfolio.
Liquidity:
If a
security is illiquid, the Portfolio might be unable to sell the security at a
time when the Portfolio’s manager might wish to sell, or at all. Further, the
lack of an established secondary market may make it more difficult to value
illiquid securities, exposing the Portfolio to the risk that the price at which
it sells illiquid securities will be less than the price at which they were
valued when held by the Portfolio. The prices of illiquid securities may be more
volatile than more liquid investments. The risks associated with illiquid
securities may be greater in times of financial stress. The Portfolio could lose
money if it cannot sell a security at the time and price that would be most
beneficial to the Portfolio.
Market:
Stock
prices may be volatile or have reduced liquidity in response to real or
perceived impacts of factors including, but not limited to, economic conditions,
changes in market interest rates, and political events. Stock markets tend to be
cyclical, with periods when stock prices generally rise and periods when stock
prices generally decline. Any given stock market segment may remain out of favor
with investors for a short or long period of time, and stocks as an asset class
may underperform bonds or other asset classes during some periods. Additionally,
legislative, regulatory or tax policies or developments in these areas may
adversely impact the investment techniques available to a manager, add to costs
and impair the ability of the Portfolio to achieve its investment
objectives.
Market
Disruption and Geopolitical: The Portfolio is subject to the
risk that geopolitical events will disrupt securities markets and adversely
affect global economies and markets. Due to the increasing interdependence among
global economies and markets, conditions in one country, market, or region might
adversely impact markets, issuers and/or foreign exchange rates in other
countries, including the U.S. Wars, terrorism, global health crises and
pandemics, and other geopolitical events have led, and in the future may lead,
to increased market volatility and may have adverse short- or long-term effects
on U.S. and world economies and markets generally. For example, the COVID-19
pandemic has resulted, and may continue to result, in significant market
volatility, exchange trading suspensions and closures, declines in global
financial markets, higher default rates, and a substantial economic downturn in
economies throughout the world. Natural and environmental disasters and systemic
market dislocations are also highly disruptive to economies and markets. In
addition, military action by Russia in Ukraine could adversely affect global
energy and financial markets and therefore could affect the value of a
Portfolio’s investments, including beyond a Portfolio’s direct exposure to
Russian issuers or nearby geographic regions. The extent and duration of the
military action, sanctions and resulting market disruptions are impossible to
predict and could be substantial. Those events as well as other changes in
non-U.S. and domestic economic, social, and political conditions also could
adversely affect individual issuers or related groups of issuers, securities
markets, interest rates, credit ratings, inflation, investor sentiment, and
other factors affecting the value of the investments of the Portfolio and the
Portfolio. Any of these occurrences could disrupt the operations of the
Portfolio and of the Portfolio’s service providers.
Other
Investment Companies:
The
main risk of investing in other investment companies, including exchange-traded
funds (“ETFs”), is the risk that the value of the securities underlying an
investment company might decrease. Shares of investment companies that are
listed on an exchange may trade at a discount or premium from their net asset
value. You will pay a proportionate share of the expenses of those other
investment companies (including management fees, administration fees, and
custodial fees) in addition to the expenses of the Portfolio. The investment
policies of the other investment companies may not be the same as those of the
Portfolio; as a result, an investment in the other investment companies may be
subject to additional or different risks than those to which the Portfolio is
typically subject.
Real
Estate Companies and Real Estate Investment Trusts (“REITs”): Investing in real estate companies
and REITs may subject the Portfolio to risks similar to those associated with
the direct ownership of real estate, including losses from casualty or
condemnation, changes in local and general economic conditions, supply and
demand, market interest rates, zoning laws, regulatory limitations on rents,
property taxes, and operating expenses in addition to terrorist attacks, wars,
or other acts that destroy real property. Investments in REITs are affected by
the management skill and creditworthiness of the REIT. The Portfolio will
indirectly bear its proportionate share of expenses, including management fees,
paid by each REIT in which it invests.
Voya Index
Plus SmallCap Portfolio
38
Securities
Lending:
Securities lending
involves two primary risks: “ investment risk ” and “ borrower default risk. ”
When lending securities, the Portfolio will receive cash or U.S. government
securities as collateral. Investment risk is the risk that the Portfolio will
lose money from the investment of the cash collateral received from the
borrower. Borrower default risk is the risk that the Portfolio will lose money
due to the failure of a borrower to return a borrowed security. Securities
lending may result in leverage. The use of leverage may exaggerate any increase
or decrease in the net asset value, causing the Portfolio to be more volatile.
The use of leverage may increase expenses and increase the impact of the
Portfolio’s other risks.
Small-Capitalization
Company:
Investments in
small-capitalization companies may involve greater risk than is customarily
associated with larger, more established companies due to the greater business
risks of a limited operating history, small size, limited markets and financial
resources, narrow product lines, less management depth and more reliance on key
personnel. The securities of smaller companies are subject to liquidity risk as
they are often traded over-the-counter and may not be traded in volume typical
on a national securities exchange.
An
investment in the Portfolio is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation, the
Federal Reserve Board or any other government agency.
Performance
Information
The
following information is intended to help you understand the risks of investing
in the Portfolio. The following bar
chart shows the changes in the Portfolio's performance from year to year, and
the table compares the Portfolio's performance to the performance of a
broad-based securities market index/indices for the same period. The Portfolio's
performance information reflects applicable
fee waivers and/or expense limitations in effect during the period presented.
Absent such fee waivers/expense limitations, if any, performance would have been
lower.
The bar chart shows the performance of the Portfolio's Class S
shares. Performance for
other share classes would differ to the extent they have differences in their
fees and expenses.
Because
Class S2 shares
of the Portfolio had not commenced operations as of the calendar year ended
December 31, 2021,
no performance
information for Class S2 shares is provided below.
Performance
shown in the bar chart and in the Average Annual Total Returns table does not
include insurance-related charges imposed under a
Variable Contract or expenses related to a Qualified Plan. If these charges or
expenses were included, performance would be lower. Thus, you should not compare
the Portfolio's performance directly with the performance information of other
investment products without taking into account all insurance-related charges
and expenses payable under your Variable Contract or Qualified Plan.
The
Portfolio's past performance is no guarantee of future results.
Calendar
Year Total Returns Class
S
(as of December 31 of each year)
(as of December 31 of each year)
|
Best
quarter: |
4th Quarter
2020 |
29.51% |
|
Worst
quarter: |
1st Quarter
2020 |
-34.87% |
Average
Annual Total Returns %
(for the periods ended December 31, 2021)
(for the periods ended December 31, 2021)
|
|
|
1
Yr |
5
Yrs |
10
Yrs |
Since
Inception |
Inception
Date |
|
Class
I |
% |
28.45 |
9.69 |
12.71 |
N/A |
12/19/97 |
|
S&P
SmallCap 600® Index1 |
% |
26.82 |
12.42 |
14.50 |
N/A |
|
|
Class
S |
% |
28.13 |
9.41 |
12.43 |
N/A |
07/16/01 |
|
S&P
SmallCap 600® Index1 |
% |
26.82 |
12.42 |
14.50 |
N/A |
|
1
The index
returns do not reflect deductions for fees, expenses, or
taxes.
Voya Index
Plus SmallCap Portfolio
39
Portfolio
Management
|
Investment
Adviser |
Sub-Adviser |
|
Voya
Investments, LLC |
Voya Investment
Management Co. LLC |
|
Portfolio
Managers |
|
|
Vincent
Costa, CFA
Portfolio
Manager (since 05/06) |
Peg
DiOrio, CFA
Portfolio
Manager (since 02/19) |
|
Steve
Wetter
Portfolio
Manager (since 09/13) |
Kai
Yee Wong
Portfolio
Manager (since 05/16) |
Purchase
and Sale of Portfolio Shares
Shares
of the Portfolio are not offered directly to the public. Purchase and sale of
shares may be made only by separate accounts of
insurance companies serving as investment options under Variable Contracts or by
Qualified Plans, custodian accounts, and certain investment advisers and their
affiliates, other investment companies, or permitted investors. Please refer to
the prospectus for the appropriate insurance company separate account,
investment company, or your plan documents for information on how to direct
investments in, or sale from, an investment option corresponding to the
Portfolio and any fees that may apply. Participating insurance companies and
certain other designated organizations are authorized to receive purchase orders
on the Portfolio's behalf.
Class S2
shares of the Portfolio are not currently offered.
Tax
Information
Distributions
made by the Portfolio to a Variable Contract or Qualified Plan, and exchanges
and redemptions of Portfolio shares made by a Variable
Contract or Qualified Plan, ordinarily do not cause the corresponding contract
holder or plan participant to recognize income or gain for federal income tax
purposes. See the contract prospectus or the governing documents of your
Qualified Plan for information regarding the federal income tax treatment of the
distributions to your Variable Contract or Qualified Plan and the holders of the
contracts or plan participants.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you invest in the Portfolio through a Variable Contract issued by an insurance
company or through a Qualified Plan that, in turn, was purchased
or serviced through an insurance company, broker-dealer or other financial
intermediary, the Portfolio and its adviser or distributor or their affiliates
may: (1) make payments to the insurance company issuer of the Variable Contract
or to the company servicing the Qualified Plan; and (2) make payments to the
insurance company, broker-dealer or other financial intermediary. These payments
may create a conflict of interest by: (1) influencing the insurance company or
the company servicing the Qualified Plan to make the Portfolio available as an
investment option for the Variable Contract or the Qualified Plan; or (2) by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Variable Contract or the pension servicing agent and/or the
Portfolio over other options. Ask your salesperson or Qualified Plan
administrator or visit your financial intermediary's website for more
information.
Voya Index
Plus SmallCap Portfolio
40
Voya Intermediate
Bond Portfolio
Investment
Objective
The
Portfolio seeks to maximize total return consistent with reasonable risk. The
Portfolio seeks its objective through investments in a diversified
portfolio consisting primarily of debt securities. It is anticipated that
capital appreciation and investment income will both be major factors in
achieving total return.
Fees
and Expenses of the Portfolio
The
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Portfolio. You
may pay other fees and expenses such as fees and expenses imposed under your
variable annuity contracts or variable life insurance policies (“Variable
Contract”) or a qualified pension or retirement plan (“Qualified Plan”), which
are not reflected in the tables and examples below. If these fees or
expenses were included in the table, the Portfolio’s expenses would be higher.
For more information on these charges, please refer to the documents governing
your Variable Contract or consult your plan administrator.
Annual
Portfolio Operating Expenses
Expenses you pay each year as a % of the value of your investment
Expenses you pay each year as a % of the value of your investment
|
Class |
|
ADV |
I |
S |
S2 |
|
Management
Fees |
% |
0.50 |
0.50 |
0.50 |
0.50 |
|
Distribution
and/or Shareholder Services (12b-1) Fees |
% |
0.50 |
None |
0.25 |
0.40 |
|
Other
Expenses |
% |
0.07 |
0.07 |
0.07 |
0.07 |
|
Acquired
Fund Fees and Expenses |
% |
0.02 |
0.02 |
0.02 |
0.02 |
|
Total
Annual Portfolio Operating Expenses1 |
% |
1.09 |
0.59 |
0.84 |
0.99 |
|
Waivers
and Reimbursements2 |
% |
(0.04) |
(0.04) |
(0.04) |
(0.04) |
|
Total
Annual Portfolio Operating Expenses
after
Waivers and Reimbursements |
% |
1.05 |
0.55 |
0.80 |
0.95 |
1
Total Annual
Portfolio Operating Expenses shown may be higher than the Portfolio's ratio of
expenses to average net assets shown in the Financial Highlights, which reflects
the operating expenses of the Portfolio and does not include Acquired Fund Fees
and Expenses.
2
The adviser is contractually
obligated to limit expenses to 1.03%, 0.53%, 0.78%, and 0.93% for Class ADV,
Class I, Class S, and Class S2 shares, respectively, through May 1, 2023. The limitation does not extend to
interest, taxes, investment-related costs, leverage expenses, extraordinary
expenses, and Acquired Fund Fees and Expenses. This limitation is subject to
possible recoupment by the adviser within 36 months of the waiver or
reimbursement. Termination or modification of this obligation requires approval
by the Portfolio’s board.
Expense
Example
The
Example is intended to help you compare the cost of investing in shares of the
Portfolio with the costs of investing in other mutual funds.
The Example does not reflect expenses and charges which are, or may be, imposed
under your Variable Contract or Qualified Plan. The Example assumes that you
invest $10,000 in the Portfolio for the time periods indicated. The Example also
assumes that your investment had a 5% return each year and that the Portfolio's
operating expenses remain the same. The Example
reflects applicable expense limitation agreements and/or waivers in effect, if
any, for the one-year period and the
first year of the three-, five-, and ten-year periods. Although your
actual costs may be higher or lower, based on these
assumptions your costs would be:
|
Class |
|
|
1
Yr |
3
Yrs |
5
Yrs |
10
Yrs |
|
|
|
|
|
|
|
ADV |
|
$ |
107 |
343 |
597 |
1,325 |
|
|
|
|
|
|
|
I |
|
$ |
56 |
185 |
325 |
734 |
|
|
|
|
|
|
|
S |
|
$ |
82 |
264 |
462 |
1,033 |
|
|
|
|
|
|
|
S2 |
|
$ |
97 |
311 |
543 |
1,209 |
|
|
|
|
|
|
Portfolio
Turnover
The
Portfolio pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher transaction
costs. These costs, which are not reflected in Annual Portfolio Operating
Expenses or in the Expense Example, affect the Portfolio's
performance.
During the most recent fiscal year,
the Portfolio's portfolio turnover rate was 139% of the average value of its
portfolio.
41
Voya Intermediate
Bond Portfolio
Principal
Investment Strategies
Under
normal market conditions, the Portfolio invests at least 80% of its net assets
(plus borrowings for investment purposes) in a portfolio of
bonds, including but not limited to corporate, government and mortgage bonds,
which, at the time of purchase, are rated investment-grade (e.g., rated at least
BBB- by S&P Global Ratings or Baa3 by Moody's Investors Service, Inc.) or
have an equivalent rating by a nationally recognized statistical rating
organization (“NRSRO”), or are of comparable quality if unrated. The Portfolio
will provide shareholders with at least 60 days' prior notice of any change in
this investment policy.
Although
the Portfolio may invest a portion of its assets in high-yield (high risk) debt
instruments rated below investment grade (commonly
referred to as “junk bonds”), the Portfolio will seek to maintain a minimum
weighted average portfolio quality rating of at least investment-grade.
Generally, the sub-adviser (“Sub-Adviser”) maintains a dollar-weighted average
duration between three and ten years. Duration is the most commonly used measure
of risk in debt instruments as it incorporates multiple features of the debt
instruments (e.g., yield, coupon,
maturity, etc.) into one number. Duration is a measure of sensitivity of the
price of a debt instrument to a change in interest rates. Duration is a weighted
average of the times that interest payments and the final return of principal
are received. The weights are the amounts of the payments discounted by the
yield-to-maturity of the debt instrument. Duration is expressed as a number of
years. The bigger the duration number, the greater the interest-rate risk or
reward for the debt instrument prices. For example, the price of a bond with an
average duration of five years would be expected to fall approximately 5% if
interest rates rose by 1%. Conversely, the price of a bond with an average
duration of five years would be expected to rise approximately 5% if interest
rates drop by 1%.
The
Portfolio may also invest in: preferred stocks; high quality money market
instruments; municipal bonds; debt instruments of foreign issuers
(including those located in emerging market countries); securities denominated
in foreign currencies; foreign currencies; mortgage-backed and asset-backed
securities; bank loans and floating rate secured loans (“Senior Loans”); and
derivatives including futures, options, and swaps (including credit default
swaps, interest rate swaps and total return swaps) involving securities,
securities indices and interest rates, which may be denominated in the U.S.
dollar or foreign currencies. The Portfolio typically uses derivatives to reduce
exposure to other risks, such as interest rate or currency risk, to substitute
for taking a position in the underlying asset, and/or to enhance returns in the
Portfolio.
The
Portfolio may seek to obtain exposure to the securities in which it invests by
entering into a series of purchase and sale contracts or
through other investment techniques such as buy backs and dollar
rolls.
The
Portfolio may invest in other investment companies, including exchange-traded
funds, to the extent permitted under the Investment Company
Act of 1940, as amended, and the rules, regulations, and exemptive orders
thereunder (“1940 Act”).
The
Sub-Adviser believes that relationships between the drivers of debt instrument
returns change over time and that recognizing this is key to
managing debt instrument assets. Therefore, the Sub-Adviser employs a dynamic
investment process that seeks to balance top-down macro economic considerations
and fundamental bottom-up analysis during the steps of its investment process -
sector allocation, security selection, duration and yield curve management. This
includes utilizing proprietary qualitative analysis along with quantitative
tools throughout the portfolio construction process.
In evaluating
investments for the Portfolio, the Sub-Adviser normally expects to take into
account environmental, social, or governance (“ESG”) factors, to
determine whether any or all of those factors might have a significant effect on
the performance, risks, or prospects of a company or issuer. The Sub-Adviser
intends to rely primarily on third-party evaluations of a company’s ESG standing
and/or on factors identified through its proprietary research as material to a
particular company or the industry in which it operates. The Sub-Adviser may
give environmental, social, and governance factors equal consideration or may
focus on one or more of those factors as it considers appropriate. The
Sub-Adviser may consider specific ESG metrics or a company’s progress or lack of
progress toward meeting ESG targets. ESG factors will be only one consideration
in the Sub-Adviser’s evaluation of any potential investment, and the effect, if
any, of ESG factors on the Sub-Adviser’s decision whether to invest in any case
will vary depending on the judgment of the Sub-Adviser.
The
Sub-Adviser may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into opportunities
believed to be more promising, among others.
The Portfolio
may lend portfolio securities on a short-term or long-term basis, up to
33 1∕3% of its total
assets.
Principal
Risks
You
could lose money on an investment in the Portfolio. Any of the
following risks, among others, could affect Portfolio performance or cause the
Portfolio to lose money or to underperform market averages of other
funds.
Bank
Instruments:
Bank
instruments include certificates of deposit, fixed time deposits, bankers’
acceptances, and other debt and deposit-type obligations issued by banks.
Changes in economic, regulatory or political conditions, or other events that
affect the banking industry may have an adverse effect on bank instruments or
banking institutions that serve as counterparties in transactions with the
Portfolio.
Voya Intermediate
Bond Portfolio
42
Company:
The
price of a company’s stock could decline or underperform for many reasons
including, among others, poor management, financial problems, reduced demand for
company goods or services, regulatory fines and judgments, or business
challenges. If a company declares bankruptcy or becomes insolvent, its stock
could become worthless.
Credit:
The
price of a bond or other debt instrument is likely to fall if the issuer’s
actual or perceived financial health deteriorates, whether because of broad
economic or issuer-specific reasons. In certain cases, the issuer could be late
in paying interest or principal, or could fail to pay its financial obligations
altogether.
Credit
Default Swaps:
The
Portfolio may enter into credit default swaps, either as a buyer or a seller of
the swap. A buyer of a swap pays a fee to buy protection against the risk that a
security will default. If no default occurs, the Portfolio will have paid the
fee, but typically will recover nothing under the swap. A seller of a swap
receives payment(s) in return for an obligation to pay the counterparty the full
notional value of a security in the event of a default of the security issuer.
As a seller of a swap, the Portfolio would effectively add leverage to its
portfolio because, in addition to its total net assets, the Portfolio would be
subject to investment exposure on the full notional value of the swap. Credit
default swaps are particularly subject to counterparty, credit, valuation,
liquidity and leveraging risks and the risk that the swap may not correlate with
its underlying asset as expected. Certain standardized swaps are subject to
mandatory central clearing. Central clearing is expected to reduce counterparty
credit risk and increase liquidity; however, there is no assurance that central
clearing will achieve that result, and in the meantime, central clearing and
related requirements expose the Portfolio to new kinds of costs and risks. In
addition, credit default swaps expose the Portfolio to the risk of improper
valuation.
Currency:
To the
extent that the Portfolio invests directly or indirectly in foreign (non-U.S.)
currencies or in securities denominated in, or that trade in, foreign (non-U.S.)
currencies, it is subject to the risk that those foreign (non-U.S.) currencies
will decline in value relative to the U.S. dollar or, in the case of hedging
positions, that the U.S. dollar will decline in value relative to the currency
being hedged by the Portfolio through foreign currency exchange
transactions.
Derivative
Instruments:
Derivative
instruments are subject to a number of risks, including the risk of changes in
the market price of the underlying securities, credit risk with respect to the
counterparty, risk of loss due to changes in market interest rates and liquidity
and volatility risk. The amounts required to purchase certain derivatives may be
small relative to the magnitude of exposure assumed by the Portfolio. Therefore,
the purchase of certain derivatives may have an economic leveraging effect on
the Portfolio and exaggerate any increase or decrease in the net asset value.
Derivatives may not perform as expected, so the Portfolio may not realize the
intended benefits. When used for hedging purposes, the change in value of a
derivative may not correlate as expected with the currency, security or other
risk being hedged. When used as an alternative or substitute for direct cash
investment, the return provided by the derivative may not provide the same
return as direct cash investment. In addition, given their complexity,
derivatives expose the Portfolio to the risk of improper valuation.
Environmental,
Social and/or Governance (strategy): The Sub-Adviser’s consideration of
environmental, social and/or governance (“ESG”) factors in selecting investments
for the Portfolio may cause it to forego other favorable investments that other
investors who do not consider similar factors or who evaluate them differently
might select. This may cause the Portfolio to underperform the stock market or
relevant benchmark as a whole or other funds that do not consider ESG factors or
that use such factors differently. The Sub-Adviser’s consideration of ESG
factors is qualitative and subjective by nature, and it is possible that it will
have an adverse effect on the Portfolio’s performance. In evaluating a company
or issuer in light of ESG factors, the Sub-Adviser may consider information and
data obtained through voluntary or third-party reporting that may be incomplete
or inaccurate. It is possible the companies or issuers identified through the
Sub-Adviser’s consideration of ESG factors will not operate as expected and will
not exhibit positive ESG characteristics to the extent the Sub-Adviser might
have anticipated.
Floating
Rate Loans: In the event a borrower fails to
pay scheduled interest or principal payments on a floating rate loan (which can
include certain bank loans), the Portfolio will experience a reduction in its
income and a decline in the market value of such investment. This will likely
reduce the amount of dividends paid and may lead to a decline in the net asset
value. If a floating rate loan is held by the Portfolio through another
financial institution, or the Portfolio relies upon another financial
institution to administer the loan, the receipt of scheduled interest or
principal payments may be subject to the credit risk of such financial
institution. Investors in floating rate loans may not be afforded the
protections of the anti-fraud provisions of the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended, because loans may
not be considered “securities” under such laws. Additionally, the value of
collateral, if any, securing a floating rate loan can decline or may be
insufficient to meet the issuer’s obligations under the loan. Furthermore, such
collateral may be difficult to liquidate. No active trading market may exist for
many floating rate loans and many floating rate loans are subject to
restrictions on resale. Transactions in loans typically settle on a delayed
basis and may take longer than 7 days to settle. As a result, the Portfolio may
not receive the proceeds from a sale of a floating rate loan for a significant
period of time. Delay in the receipts of settlement proceeds may impair the
ability of the Portfolio to meet its redemption obligations. It may also limit
the ability of the Portfolio to repay debt, pay dividends, or to take advantage
of new investment opportunities.
Voya Intermediate
Bond Portfolio
43
Foreign
Investments/Developing and Emerging Markets: Investing in
foreign (non-U.S.) securities may result in the Portfolio experiencing more
rapid and extreme changes in value than a fund that invests exclusively in
securities of U.S. companies due to: smaller markets; differing reporting,
accounting, auditing and financial reporting standards and practices;
nationalization, expropriation, or confiscatory taxation; foreign currency
fluctuations, currency blockage, or replacement; potential for default on
sovereign debt; or political changes or diplomatic developments, which may
include the imposition of economic sanctions or other measures by the United
States or other governments and supranational organizations. Markets and
economies throughout the world are becoming increasingly interconnected, and
conditions or events in one market, country or region may adversely impact
investments or issuers in another market, country or region. Foreign investment
risks may be greater in developing and emerging
markets than in developed markets.
High-Yield
Securities:
Lower
quality securities (including securities that have fallen below investment-grade
and are classified as “junk bonds” or “high yield securities”) have greater
credit risk and liquidity risk than higher quality (investment-grade)
securities, and their issuers' long-term ability to make payments is considered
speculative. Prices of lower quality bonds or other debt instruments are also
more volatile, are more sensitive to negative news about the economy or the
issuer, and have greater liquidity and price volatility risk.
Interest
in Loans:
The
value and the income streams of interests in loans (including participation
interests in lease financings and assignments in secured variable or floating
rate loans) will decline if borrowers delay payments or fail to pay altogether.
A significant rise in market interest rates could increase this risk. Although
loans may be fully collateralized when purchased, such collateral may become
illiquid or decline in value.
Interest
Rate: With bonds and other fixed rate
debt instruments, a rise in market interest rates generally causes values to
fall; conversely, values generally rise as market interest rates fall. The
higher the credit quality of the instrument, and the longer its maturity or
duration, the more sensitive it is likely to be to interest rate risk. Duration
is a measure of sensitivity of the price of a debt instrument to a change in
interest rate. As of the date of this Prospectus, the United States experiences
a low interest rate environment, which may increase the Portfolio’s exposure to
risks associated with rising market interest rates. Rising market interest rates
could have unpredictable effects on the markets and may expose fixed-income and
related markets to heightened volatility. To the extent that the Portfolio
invests in fixed-income securities, an increase in market interest rates may
lead to increased redemptions and increased portfolio turnover, which could
reduce liquidity for certain investments, adversely affect values, and increase
costs. Increased redemptions may cause the Portfolio to liquidate portfolio
positions when it may not be advantageous to do so and may lower returns. If
dealer capacity in fixed-income markets is insufficient for market conditions,
it may further inhibit liquidity and increase volatility in the fixed-income
markets. Further, recent and potential future changes in government policy may
affect interest rates. Negative or very low interest rates could magnify the
risks associated with changes in interest rates. In general, changing interest
rates, including rates that fall below zero, could have unpredictable effects on
markets and may expose fixed-income and related markets to heightened
volatility. Changes to monetary policy by the Federal Reserve Board or other
regulatory actions could expose fixed-income and related markets to heightened
volatility, interest rate sensitivity and reduced liquidity, which may impact
the Portfolio’s operations and return potential.
Investment
Model:
A manager’s proprietary model may not adequately allow for existing or
unforeseen market factors or the interplay between such factors. Portfolios that
are actively managed, in whole or in part, according to a quantitative
investment model can perform
differently from the market as a whole based on the investment model and the
factors used in the analysis, the weight placed on each factor, and changes from
the factors’ historical trends. Mistakes in the construction and implementation
of the investment models (including, for example, data problems and/or software
issues) may create errors or limitations that might go undetected or are
discovered only after the errors or limitations have negatively impacted
performance. There is no guarantee that the use of these investment models will
result in effective investment decisions for the Portfolio.
LIBOR: The obligations of the parties
under many financial arrangements, such as debt instruments (including senior
loans) and derivatives, may be determined based in whole or in part on the
London Inter-Bank Offered Rate (“LIBOR”). In 2017, the UK Financial Conduct
Authority announced its intention to cease compelling banks to provide the
quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the
administrator of LIBOR, ceased publication of most LIBOR settings on a
representative basis at the end of 2021 and is expected to cease publication of
a majority of U.S. dollar LIBOR settings on a representative basis after June
30, 2023. In addition, global regulators have announced that, with limited
exceptions, no new LIBOR-based contracts should be entered into after 2021.
Actions by regulators have resulted in the establishment of alternative
reference rates to LIBOR in many major currencies, including among others a
Secured Overnight Funding Rate (“SOFR”) for U.S. dollar LIBOR. Discontinuance of
LIBOR and adoption/implementation of alternative rates pose a number of risks,
including, among others, whether any substitute rate will experience the market
participation and liquidity necessary to provide a workable substitute for
LIBOR; the effect on parties’ existing contractual arrangements, hedging
transactions, and investment strategies generally from a conversion from LIBOR
to alternative rates; the effect on the Portfolio’s existing investments,
including the possibility that some of those investments may terminate or their
terms may be adjusted to the
Voya Intermediate
Bond Portfolio
44
disadvantage of an
the Portfolio; and the risk of general market disruption during the transition
period. Markets relying on new, non-LIBOR rates are developing
slowly, and may offer limited liquidity. The general unavailability of LIBOR and
the transition away from LIBOR to other rates could have a substantial adverse
impact on the performance of an the Portfolio.
Liquidity:
If a
security is illiquid, the Portfolio might be unable to sell the security at a
time when the Portfolio’s manager might wish to sell, or at all. Further, the
lack of an established secondary market may make it more difficult to value
illiquid securities, exposing the Portfolio to the risk that the price at which
it sells illiquid securities will be less than the price at which they were
valued when held by the Portfolio. The prices of illiquid securities may be more
volatile than more liquid investments. The risks associated with illiquid
securities may be greater in times of financial stress. The Portfolio could lose
money if it cannot sell a security at the time and price that would be most
beneficial to the Portfolio.
Market:
Stock
prices may be volatile or have reduced liquidity in response to real or
perceived impacts of factors including, but not limited to, economic conditions,
changes in market interest rates, and political events. Stock markets tend to be
cyclical, with periods when stock prices generally rise and periods when stock
prices generally decline. Any given stock market segment may remain out of favor
with investors for a short or long period of time, and stocks as an asset class
may underperform bonds or other asset classes during some periods. Additionally,
legislative, regulatory or tax policies or developments in these areas may
adversely impact the investment techniques available to a manager, add to costs
and impair the ability of the Portfolio to achieve its investment
objectives.
Market
Capitalization:
Stocks
fall into three broad market capitalization categories - large, mid, and small.
Investing primarily in one category carries the risk that, due to current market
conditions, that category may be out of favor with investors. If valuations of
large-capitalization companies appear to be greatly out of proportion to the
valuations of mid- or small-capitalization companies, investors may migrate to
the stocks of mid- and small-sized companies causing a fund that invests in
these companies to increase in value more rapidly than a fund that invests in
larger companies. Investing in mid- and small-capitalization companies may be
subject to special risks associated with narrower product lines, more limited
financial resources, smaller management groups, more limited publicly available
information, and a more limited trading market for their stocks as compared with
larger companies. As a result, stocks of mid- and small-capitalization companies
may be more volatile and may decline significantly in market
downturns.
Market
Disruption and Geopolitical: The Portfolio is subject to the
risk that geopolitical events will disrupt securities markets and adversely
affect global economies and markets. Due to the increasing interdependence among
global economies and markets, conditions in one country, market, or region might
adversely impact markets, issuers and/or foreign exchange rates in other
countries, including the U.S. Wars, terrorism, global health crises and
pandemics, and other geopolitical events have led, and in the future may lead,
to increased market volatility and may have adverse short- or long-term effects
on U.S. and world economies and markets generally. For example, the COVID-19
pandemic has resulted, and may continue to result, in significant market
volatility, exchange trading suspensions and closures, declines in global
financial markets, higher default rates, and a substantial economic downturn in
economies throughout the world. Natural and environmental disasters and systemic
market dislocations are also highly disruptive to economies and markets. In
addition, military action by Russia in Ukraine could adversely affect global
energy and financial markets and therefore could affect the value of a
Portfolio’s investments, including beyond a Portfolio’s direct exposure to
Russian issuers or nearby geographic regions. The extent and duration of the
military action, sanctions and resulting market disruptions are impossible to
predict and could be substantial. Those events as well as other changes in
non-U.S. and domestic economic, social, and political conditions also could
adversely affect individual issuers or related groups of issuers, securities
markets, interest rates, credit ratings, inflation, investor sentiment, and
other factors affecting the value of the investments of the Portfolio and the
Portfolio. Any of these occurrences could disrupt the operations of the
Portfolio and of the Portfolio’s service providers.
Mortgage-
and/or Asset-Backed Securities:
Defaults on, or low
credit quality or liquidity of the underlying assets of the asset-backed
(including mortgage-backed) securities may impair the value of these securities
and result in losses. There may be limitations on the enforceability of any
security interest or collateral granted with respect to those underlying assets
and the value of collateral may not satisfy the obligation upon default. These
securities also present a higher degree of prepayment and extension risk and
interest rate risk than do other types of debt instruments.
Municipal
Obligations:
The
municipal securities market is volatile and can be significantly affected by
adverse tax, legislative, or political changes and the financial condition of
the issuers of municipal securities. Among other risks, investments in municipal
securities are subject to the risk that the issuer may delay payment,
restructure its debt, or refuse to pay interest or repay principal on its
debt.
Other
Investment Companies:
The
main risk of investing in other investment companies, including exchange-traded
funds (“ETFs”), is the risk that the value of the securities underlying an
investment company might decrease. Shares of investment companies that are
listed on an exchange may trade at a discount or premium from their net asset
value. You will pay a proportionate share of the expenses of those other
investment companies (including management fees, administration fees,
Voya Intermediate
Bond Portfolio
45
and
custodial fees) in addition to the expenses of the Portfolio. The investment
policies of the other investment companies may not be the same
as those of the Portfolio; as a result, an investment in the other investment
companies may be subject to additional or different risks than those to which
the Portfolio is typically subject.
Prepayment
and Extension: Many types of debt
instruments are subject to prepayment and extension risk. Prepayment risk is the
risk that the issuer of a debt instrument will pay back the principal earlier
than expected. This may occur when interest rates decline. Prepayment may expose
the Portfolio to a lower rate of return upon reinvestment of principal. Also, if
a debt instrument subject to prepayment has been purchased at a premium, the
value of the premium would be lost in the event of prepayment. Extension risk is
the risk that the issuer of a debt instrument will pay back the principal later
than expected. This may occur when interest rates rise. This may negatively
affect performance, as the value of the debt instrument decreases when principal
payments are made later than expected. Additionally, the Portfolio may be
prevented from investing proceeds it would have received at a given time at the
higher prevailing interest rates.
Securities
Lending:
Securities lending
involves two primary risks: “ investment risk ” and “ borrower default risk. ”
When lending securities, the Portfolio will receive cash or U.S. government
securities as collateral. Investment risk is the risk that the Portfolio will
lose money from the investment of the cash collateral received from the
borrower. Borrower default risk is the risk that the Portfolio will lose money
due to the failure of a borrower to return a borrowed security. Securities
lending may result in leverage. The use of leverage may exaggerate any increase
or decrease in the net asset value, causing the Portfolio to be more volatile.
The use of leverage may increase expenses and increase the impact of the
Portfolio’s other risks.
U.S.
Government Securities and Obligations:
U.S.
government securities are obligations of, or guaranteed by, the U.S. government,
its agencies or government-sponsored enterprises. U.S. government securities are
subject to market and interest rate risk, and may be subject to varying degrees
of credit risk.
An
investment in the Portfolio is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation, the
Federal Reserve Board or any other government agency.
Performance
Information
The
following information is intended to help you understand the risks of investing
in the Portfolio. The following bar
chart shows the changes in the Portfolio's performance from year to year, and
the table compares the Portfolio's performance to the performance of a
broad-based securities market index/indices for the same period. The Portfolio's
performance information reflects applicable
fee waivers and/or expense limitations in effect during the period presented.
Absent such fee waivers/expense limitations, if any, performance would have been
lower.
The bar chart shows the performance of the Portfolio's Class ADV shares. Performance for
other share classes would differ to the extent they have differences in their
fees and expenses.
Performance
shown in the bar chart and in the Average Annual Total Returns table does not
include insurance-related charges imposed under a
Variable Contract or expenses related to a Qualified Plan. If these charges or
expenses were included, performance would be lower. Thus, you should not compare
the Portfolio's performance directly with the performance information of other
investment products without taking into account all insurance-related charges
and expenses payable under your Variable Contract or Qualified Plan.
The
Portfolio's past performance is no guarantee of future results.
Calendar
Year Total Returns Class
ADV
(as of December 31 of each year)
(as of December 31 of each year)
|
Best
quarter: |
2nd Quarter
2020 |
5.83% |
|
Worst
quarter: |
1st Quarter
2021 |
-3.08% |
Voya Intermediate
Bond Portfolio
46
Average
Annual Total Returns %
(for the periods ended December 31, 2021)
(for the periods ended December 31, 2021)
|
|
|
1
Yr |
5
Yrs |
10
Yrs |
Since
Inception |
Inception
Date |
|
Class
ADV |
% |
-1.42 |
3.64 |
3.62 |
N/A |
12/20/06 |
|
Bloomberg
U.S. Aggregate Bond Index1 |
% |
-1.54 |
3.57 |
2.90 |
N/A |
|
|
Class
I |
% |
-0.88 |
4.17 |
4.14 |
N/A |
05/23/73 |
|
Bloomberg
U.S. Aggregate Bond Index1 |
% |
-1.54 |
3.57 |
2.90 |
N/A |
|
|
Class
S |
% |
-1.07 |
3.91 |
3.88 |
N/A |
05/03/02 |
|
Bloomberg
U.S. Aggregate Bond Index1 |
% |
-1.54 |
3.57 |
2.90 |
N/A |
|
|
Class
S2 |
% |
-1.24 |
3.76 |
3.73 |
N/A |
02/27/09 |
|
Bloomberg
U.S. Aggregate Bond Index1 |
% |
-1.54 |
3.57 |
2.90 |
N/A |
|
1
The index
returns do not reflect deductions for fees, expenses, or
taxes.
Portfolio
Management
|
Investment
Adviser |
Sub-Adviser |
|
Voya
Investments, LLC |
Voya Investment
Management Co. LLC |
|
Portfolio
Managers |
|
|
Sean Banai,
CFA
Portfolio
Manager (since 07/21) |
David
Goodson
Portfolio
Manager (since 04/17) |
|
Randall
Parrish, CFA
Portfolio
Manager (since 04/17) |
Matthew
Toms, CFA
Portfolio
Manager (since 08/10) |
Purchase
and Sale of Portfolio Shares
Shares
of the Portfolio are not offered directly to the public. Purchase and sale of
shares may be made only by separate accounts of
insurance companies serving as investment options under Variable Contracts or by
Qualified Plans, custodian accounts, and certain investment advisers and their
affiliates, other investment companies, or permitted investors. Please refer to
the prospectus for the appropriate insurance company separate account,
investment company, or your plan documents for information on how to direct
investments in, or sale from, an investment option corresponding to the
Portfolio and any fees that may apply. Participating insurance companies and
certain other designated organizations are authorized to receive purchase orders
on the Portfolio's behalf.
Tax
Information
Distributions
made by the Portfolio to a Variable Contract or Qualified Plan, and exchanges
and redemptions of Portfolio shares made by a Variable
Contract or Qualified Plan, ordinarily do not cause the corresponding contract
holder or plan participant to recognize income or gain for federal income tax
purposes. See the contract prospectus or the governing documents of your
Qualified Plan for information regarding the federal income tax treatment of the
distributions to your Variable Contract or Qualified Plan and the holders of the
contracts or plan participants.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you invest in the Portfolio through a Variable Contract issued by an insurance
company or through a Qualified Plan that, in turn, was purchased
or serviced through an insurance company, broker-dealer or other financial
intermediary, the Portfolio and its adviser or distributor or their affiliates
may: (1) make payments to the insurance company issuer of the Variable Contract
or to the company servicing the Qualified Plan; and (2) make payments to the
insurance company, broker-dealer or other financial intermediary. These payments
may create a conflict of interest by: (1) influencing the insurance company or
the company servicing the Qualified Plan to make the Portfolio available as an
investment option for the Variable Contract or the Qualified Plan; or (2) by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Variable Contract or the pension servicing agent and/or the
Portfolio over other options. Ask your salesperson or Qualified Plan
administrator or visit your financial intermediary's website for more
information.
Voya Intermediate
Bond Portfolio
47
Voya Small
Company Portfolio
Investment
Objective
The
Portfolio seeks growth of capital primarily through investment in a diversified
portfolio of common stock of companies with smaller market
capitalizations.
Fees
and Expenses of the Portfolio
The
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Portfolio. You
may pay other fees and expenses such as fees and expenses imposed under your
variable annuity contracts or variable life insurance policies (“Variable
Contract”) or a qualified pension or retirement plan (“Qualified Plan”), which
are not reflected in the tables and examples below. If these fees or
expenses were included in the table, the Portfolio’s expenses would be higher.
For more information on these charges, please refer to the documents governing
your Variable Contract or consult your plan administrator.
Annual
Portfolio Operating Expenses
Expenses you pay each year as a % of the value of your investment
Expenses you pay each year as a % of the value of your investment
|
Class |
|
ADV |
I |
R6 |
S |
|
Management
Fees |
% |
0.85 |
0.85 |
0.85 |
0.85 |
|
Distribution
and/or Shareholder Services (12b-1) Fees |
% |
0.50 |
None |
None |
0.25 |
|
Other
Expenses |
% |
0.14 |
0.14 |
0.02 |
0.14 |
|
Total
Annual Portfolio Operating Expenses |
% |
1.49 |
0.99 |
0.87 |
1.24 |
|
Waivers
and Reimbursements1 |
% |
(0.09) |
(0.09) |
None |
(0.09) |
|
Total
Annual Portfolio Operating Expenses after Waivers and
Reimbursements |
% |
1.40 |
0.90 |
0.87 |
1.15 |
1
The adviser is contractually
obligated to limit expenses to 1.40%, 0.90%, 0.90%, and 1.15%, for Class ADV,
Class I, Class R6 and Class S shares, respectively, through May 1, 2023. The limitation does not extend to
interest, taxes, investment-related costs, leverage expenses, extraordinary
expenses, and Acquired Fund Fees and Expenses. This limitation is subject to
possible recoupment by the adviser within 36 months of the waiver or
reimbursement. Termination or modification of this obligation requires approval
by the Portfolio’s board.
Expense
Example
The
Example is intended to help you compare the cost of investing in shares of the
Portfolio with the costs of investing in other mutual funds.
The Example does not reflect expenses and charges which are, or may be, imposed
under your Variable Contract or Qualified Plan. The Example assumes that you
invest $10,000 in the Portfolio for the time periods indicated. The Example also
assumes that your investment had a 5% return each year and that the Portfolio's
operating expenses remain the same. The Example
reflects applicable expense limitation agreements and/or waivers in effect, if
any, for the one-year period and the
first year of the three-, five-, and ten-year periods. Although your
actual costs may be higher or lower, based on these
assumptions your costs would be:
|
Class |
|
|
1
Yr |
3
Yrs |
5
Yrs |
10
Yrs |
|
|
|
|
|
|
|
ADV |
|
$ |
143 |
462 |
805 |
1,772 |
|
|
|
|
|
|
|
I |
|
$ |
92 |
306 |
538 |
1,205 |
|
|
|
|
|
|
|
R6 |
|
$ |
89 |
278 |
482 |
1,073 |
|
|
|
|
|
|
|
S |
|
$ |
117 |
385 |
672 |
1,492 |
|
|
|
|
|
|
Portfolio
Turnover
The
Portfolio pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher transaction
costs. These costs, which are not reflected in Annual Portfolio Operating
Expenses or in the Expense Example, affect the Portfolio's
performance.
During the most recent fiscal year,
the Portfolio's portfolio turnover rate was 129% of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, the Portfolio invests at least 80% of its net assets
(plus borrowings for investment purposes) in common stocks of
small-capitalization companies. The Portfolio will provide shareholders with at
least 60 days' prior notice of any change in this investment policy.
48
Voya Small
Company Portfolio
For this
Portfolio, the sub-adviser (“Sub-Adviser”) defines
small-capitalization companies as companies that are included in the S&P
SmallCap 600® Index or the Russell
2000® Index at the time of purchase, or
if not included in either index, have market capitalizations that fall within
the range of the market capitalizations of companies included in the S&P
SmallCap 600® Index or the Russell
2000® Index. The market capitalization
of companies within the S&P SmallCap 600® Index and the Russell
2000® Index will change with market
conditions. The market capitalization of companies in the S&P SmallCap
600® Index as of December 31, 2021
ranged from $208.2 million to $7.9 billion. The market capitalization of
companies in the Russell 2000® Index as of December 31, 2021
ranged from $31.6 million to $14 billion.
The Portfolio may
also invest in real estate-related securities including, real estate investment
trusts.
The
Portfolio may invest in derivative instruments including, but not limited to,
put and call options. The Portfolio typically uses derivative
instruments to seek to reduce exposure to risks such as currency risk, to
substitute for taking a position in the underlying asset, and/or to seek to
enhance returns in the Portfolio. The Portfolio may also invest, to a limited
extent, in foreign stocks.
The
Portfolio may invest in other investment companies, including exchange-traded
funds, to the extent permitted under the Investment Company
Act of 1940, as amended, and the rules, regulations, and exemptive orders
thereunder (“1940 Act”).
In
managing the Portfolio, the Sub-Adviser invests in stocks that it believes have
the potential for long-term growth, as well as those that
appear to be trading below their perceived value. The Sub-Adviser uses
internally developed quantitative computer models to evaluate financial and
fundamental characteristics (e.g., changes in
earnings, return on equity, and price to equity multiples) of over 2,000
companies. The Sub-Adviser analyzes these characteristics in an attempt to
identify companies whose perceived value is not reflected in the stock price;
considers the potential of each company to create or take advantage of unique
product opportunities, its potential to achieve long-term sustainable growth,
and the quality of its management.
In evaluating
investments for the Portfolio, the Sub-Adviser normally expects to take into
account environmental, social, and governance (“ESG”) factors to
determine whether any or all of those factors might have a material effect on
the value, risks, or prospects of a company. The Sub-Adviser intends to rely
primarily on factors identified through its proprietary empirical research as
material to a particular company or the industry in which it operates and on
third-party evaluations of a company’s ESG standing. The Sub-Adviser may give
environmental, social, and governance factors equal consideration or may focus
on one or more of those factors as the Sub-Adviser considers appropriate. The
Sub-Adviser may consider specific ESG metrics or a company’s progress or lack of
progress toward meeting ESG targets. ESG factors will be only one consideration
in the Sub-Adviser’s evaluation of any potential investment, and the effect, if
any, of ESG factors on the Sub-Adviser’s decision whether to invest in any case
will vary depending on the judgment of the Sub-Adviser.
The
Sub-Adviser may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into opportunities
believed to be more promising, among others.
The Portfolio
may lend portfolio securities on a short-term or long-term basis, up to
33 1∕3% of its total
assets.
Principal
Risks
You
could lose money on an investment in the Portfolio. Any of the
following risks, among others, could affect Portfolio performance or cause the
Portfolio to lose money or to underperform market averages of other
funds.
Company:
The
price of a company’s stock could decline or underperform for many reasons
including, among others, poor management, financial problems, reduced demand for
company goods or services, regulatory fines and judgments, or business
challenges. If a company declares bankruptcy or becomes insolvent, its stock
could become worthless.
Currency:
To the
extent that the Portfolio invests directly or indirectly in foreign (non-U.S.)
currencies or in securities denominated in, or that trade in, foreign (non-U.S.)
currencies, it is subject to the risk that those foreign (non-U.S.) currencies
will decline in value relative to the U.S. dollar or, in the case of hedging
positions, that the U.S. dollar will decline in value relative to the currency
being hedged by the Portfolio through foreign currency exchange
transactions.
Derivative
Instruments:
Derivative
instruments are subject to a number of risks, including the risk of changes in
the market price of the underlying securities, credit risk with respect to the
counterparty, risk of loss due to changes in market interest rates and liquidity
and volatility risk. The amounts required to purchase certain derivatives may be
small relative to the magnitude of exposure assumed by the Portfolio. Therefore,
the purchase of certain derivatives may have an economic leveraging effect on
the Portfolio and exaggerate any increase or decrease in the net asset value.
Derivatives may not perform as expected, so the Portfolio may not realize the
intended benefits. When used for hedging purposes, the change in value of a
derivative may not correlate as expected with the currency, security or other
risk being hedged. When used as an alternative or substitute for direct cash
investment, the return provided by the derivative may not provide the same
return as direct cash investment. In addition, given their complexity,
derivatives expose the Portfolio to the risk of improper valuation.
Voya Small
Company Portfolio
49
Environmental,
Social and/or Governance (strategy): The Sub-Adviser’s consideration of
environmental, social and/or governance (“ESG”) factors in selecting investments
for the Portfolio may cause it to forego other favorable investments that other
investors who do not consider similar factors or who evaluate them differently
might select. This may cause the Portfolio to underperform the stock market or
relevant benchmark as a whole or other funds that do not consider ESG factors or
that use such factors differently. The Sub-Adviser’s consideration of ESG
factors is qualitative and subjective by nature, and it is possible that it will
have an adverse effect on the Portfolio’s performance. In evaluating a company
or issuer in light of ESG factors, the Sub-Adviser may consider information and
data obtained through voluntary or third-party reporting that may be incomplete
or inaccurate. It is possible the companies or issuers identified through the
Sub-Adviser’s consideration of ESG factors will not operate as expected and will
not exhibit positive ESG characteristics to the extent the Sub-Adviser might
have anticipated.
Foreign
Investments: Investing in
foreign (non-U.S.) securities may result in the Portfolio experiencing more
rapid and extreme changes in value than a fund that invests exclusively in
securities of U.S. companies due to: smaller markets; differing reporting,
accounting, auditing and financial reporting standards and practices;
nationalization, expropriation, or confiscatory taxation; foreign currency
fluctuations, currency blockage, or replacement; potential for default on
sovereign debt; or political changes or diplomatic developments, which may
include the imposition of economic sanctions or other measures by the United
States or other governments and supranational organizations. Markets and
economies throughout the world are becoming increasingly interconnected, and
conditions or events in one market, country or region may adversely impact
investments or issuers in another market, country or region.
Growth
Investing:
Prices
of growth stocks are more sensitive to investor perceptions of the issuing
company’s growth potential and may fall quickly and significantly if investors
suspect that actual growth may be less than expected. There is a risk that funds
that invest in growth-oriented stocks may underperform other funds that invest
more broadly. Growth stocks tend to be more volatile than value stocks, and may
underperform the market as a whole over any given time period.
Investment
Model:
A manager’s proprietary model may not adequately allow for existing or
unforeseen market factors or the interplay between such factors. Portfolios that
are actively managed, in whole or in part, according to a quantitative
investment model can perform
differently from the market as a whole based on the investment model and the
factors used in the analysis, the weight placed on each factor, and changes from
the factors’ historical trends. Mistakes in the construction and implementation
of the investment models (including, for example, data problems and/or software
issues) may create errors or limitations that might go undetected or are
discovered only after the errors or limitations have negatively impacted
performance. There is no guarantee that the use of these investment models will
result in effective investment decisions for the Portfolio.
Liquidity:
If a
security is illiquid, the Portfolio might be unable to sell the security at a
time when the Portfolio’s manager might wish to sell, or at all. Further, the
lack of an established secondary market may make it more difficult to value
illiquid securities, exposing the Portfolio to the risk that the price at which
it sells illiquid securities will be less than the price at which they were
valued when held by the Portfolio. The prices of illiquid securities may be more
volatile than more liquid investments. The risks associated with illiquid
securities may be greater in times of financial stress. The Portfolio could lose
money if it cannot sell a security at the time and price that would be most
beneficial to the Portfolio.
Market:
Stock
prices may be volatile or have reduced liquidity in response to real or
perceived impacts of factors including, but not limited to, economic conditions,
changes in market interest rates, and political events. Stock markets tend to be
cyclical, with periods when stock prices generally rise and periods when stock
prices generally decline. Any given stock market segment may remain out of favor
with investors for a short or long period of time, and stocks as an asset class
may underperform bonds or other asset classes during some periods. Additionally,
legislative, regulatory or tax policies or developments in these areas may
adversely impact the investment techniques available to a manager, add to costs
and impair the ability of the Portfolio to achieve its investment
objectives.
Market
Disruption and Geopolitical: The Portfolio is subject to the
risk that geopolitical events will disrupt securities markets and adversely
affect global economies and markets. Due to the increasing interdependence among
global economies and markets, conditions in one country, market, or region might
adversely impact markets, issuers and/or foreign exchange rates in other
countries, including the U.S. Wars, terrorism, global health crises and
pandemics, and other geopolitical events have led, and in the future may lead,
to increased market volatility and may have adverse short- or long-term effects
on U.S. and world economies and markets generally. For example, the COVID-19
pandemic has resulted, and may continue to result, in significant market
volatility, exchange trading suspensions and closures, declines in global
financial markets, higher default rates, and a substantial economic downturn in
economies throughout the world. Natural and environmental disasters and systemic
market dislocations are also highly disruptive to economies and markets. In
addition, military action by Russia in Ukraine could adversely affect global
energy and financial markets and therefore could affect the value of a
Portfolio’s investments, including beyond a Portfolio’s direct exposure to
Russian issuers or nearby geographic regions. The extent and duration of the
military action, sanctions and resulting market disruptions are impossible to
predict and could be substantial. Those events as well as other changes in
non-U.S. and domestic economic, social, and political conditions also could
adversely
Voya Small
Company Portfolio
50
affect
individual issuers or related groups of issuers, securities markets, interest
rates, credit ratings, inflation, investor sentiment, and other factors
affecting the value of the investments of the Portfolio and the Portfolio. Any
of these occurrences could disrupt the operations of the Portfolio and of the
Portfolio’s service providers.
Other
Investment Companies:
The
main risk of investing in other investment companies, including exchange-traded
funds (“ETFs”), is the risk that the value of the securities underlying an
investment company might decrease. Shares of investment companies that are
listed on an exchange may trade at a discount or premium from their net asset
value. You will pay a proportionate share of the expenses of those other
investment companies (including management fees, administration fees, and
custodial fees) in addition to the expenses of the Portfolio. The investment
policies of the other investment companies may not be the same as those of the
Portfolio; as a result, an investment in the other investment companies may be
subject to additional or different risks than those to which the Portfolio is
typically subject.
Real
Estate Companies and Real Estate Investment Trusts (“REITs”): Investing in real estate companies
and REITs may subject the Portfolio to risks similar to those associated with
the direct ownership of real estate, including losses from casualty or
condemnation, changes in local and general economic conditions, supply and
demand, market interest rates, zoning laws, regulatory limitations on rents,
property taxes, and operating expenses in addition to terrorist attacks, wars,
or other acts that destroy real property. Investments in REITs are affected by
the management skill and creditworthiness of the REIT. The Portfolio will
indirectly bear its proportionate share of expenses, including management fees,
paid by each REIT in which it invests.
Securities
Lending:
Securities lending
involves two primary risks: “ investment risk ” and “ borrower default risk. ”
When lending securities, the Portfolio will receive cash or U.S. government
securities as collateral. Investment risk is the risk that the Portfolio will
lose money from the investment of the cash collateral received from the
borrower. Borrower default risk is the risk that the Portfolio will lose money
due to the failure of a borrower to return a borrowed security. Securities
lending may result in leverage. The use of leverage may exaggerate any increase
or decrease in the net asset value, causing the Portfolio to be more volatile.
The use of leverage may increase expenses and increase the impact of the
Portfolio’s other risks.
Small-Capitalization
Company:
Investments in
small-capitalization companies may involve greater risk than is customarily
associated with larger, more established companies due to the greater business
risks of a limited operating history, small size, limited markets and financial
resources, narrow product lines, less management depth and more reliance on key
personnel. The securities of smaller companies are subject to liquidity risk as
they are often traded over-the-counter and may not be traded in volume typical
on a national securities exchange.
Value
Investing:
Securities that
appear to be undervalued may never appreciate to the extent expected. Further,
because the prices of value-oriented securities tend to correlate more closely
with economic cycles than growth-oriented securities, they generally are more
sensitive to changing economic conditions, such as changes in market interest
rates, corporate earnings and industrial production. The manager may be wrong in
its assessment of a company’s value and the securities the Portfolio holds may
not reach their full values. A particular risk of the Portfolio’s value approach
is that some holdings may not recover and provide the capital growth anticipated
or a security judged to be undervalued may actually be appropriately priced. The
market may not favor value-oriented securities and may not favor equities at
all. During those periods, the Portfolio’s relative performance may suffer.
There is a risk that funds that invest in value-oriented stocks may underperform
other funds that invest more broadly.
An
investment in the Portfolio is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation, the
Federal Reserve Board or any other government agency.
Performance
Information
The
following information is intended to help you understand the risks of investing
in the Portfolio. The following bar
chart shows the changes in the Portfolio's performance from year to year, and
the table compares the Portfolio's performance to the performance of a
broad-based securities market index/indices for the same period. The Portfolio's
performance information reflects applicable
fee waivers and/or expense limitations in effect during the period presented.
Absent such fee waivers/expense limitations, if any, performance would have been
lower.
The bar chart shows the performance of the Portfolio's Class ADV shares. Performance for
other share classes would differ to the extent they have differences in their
fees and expenses. The Class R6
shares performance shown for the period prior to their inception date is the
performance of Class I shares without adjustment for any differences in the
expenses between the two classes. If adjusted for such differences, returns
would be different.
Performance
shown in the bar chart and in the Average Annual Total Returns table does not
include insurance-related charges imposed under a
Variable Contract or expenses related to a Qualified Plan. If these charges or
expenses were included, performance would be lower. Thus, you should not compare
the Portfolio's performance directly with the performance information of other
investment products without taking into account all insurance-related charges
and expenses payable under your Variable Contract or Qualified Plan.
The
Portfolio's past performance is no guarantee of future results.
Voya Small
Company Portfolio
51
Calendar
Year Total Returns Class ADV
(as of December 31 of each year)
(as of December 31 of each year)
|
Best
quarter: |
4th Quarter
2020 |
30.92% |
|
Worst
quarter: |
1st Quarter
2020 |
-32.18% |
Average
Annual Total Returns %
(for the periods ended December 31, 2021)
(for the periods ended December 31, 2021)
|
|
|
1
Yr |
5
Yrs |
10
Yrs |
Since
Inception |
Inception
Date |
|
Class
ADV |
% |
14.19 |
8.24 |
11.64 |
N/A |
12/16/08 |
|
Russell
2000® Index1 |
% |
14.82 |
12.02 |
13.23 |
N/A |
|
|
Class
I |
% |
14.76 |
8.78 |
12.20 |
N/A |
12/27/96 |
|
Russell
2000® Index1 |
% |
14.82 |
12.02 |
13.23 |
N/A |
|
|
Class
R6 |
% |
14.77 |
8.78 |
12.20 |
N/A |
11/24/15 |
|
Russell
2000® Index1 |
% |
14.82 |
12.02 |
13.23 |
N/A |
|
|
Class
S |
% |
14.47 |
8.51 |
11.92 |
N/A |
11/01/01 |
|
Russell
2000® Index1 |
% |
14.82 |
12.02 |
13.23 |
N/A |
|
1
The index
returns do not reflect deductions for fees, expenses, or
taxes.
Portfolio
Management
|
Investment
Adviser |
Sub-Adviser |
|
Voya
Investments, LLC |
Voya Investment
Management Co. LLC |
|
Portfolio
Manager |
|
Joseph
Basset, CFA
Portfolio
Manager (since 05/06) |
Purchase
and Sale of Portfolio Shares
Shares
of the Portfolio are not offered directly to the public. Purchase and sale of
shares may be made only by separate accounts of
insurance companies serving as investment options under Variable Contracts or by
Qualified Plans, custodian accounts, and certain investment advisers and their
affiliates, other investment companies, or permitted investors. Please refer to
the prospectus for the appropriate insurance company separate account,
investment company, or your plan documents for information on how to direct
investments in, or sale from, an investment option corresponding to the
Portfolio and any fees that may apply. Participating insurance companies and
certain other designated organizations are authorized to receive purchase orders
on the Portfolio's behalf.
Tax
Information
Distributions
made by the Portfolio to a Variable Contract or Qualified Plan, and exchanges
and redemptions of Portfolio shares made by a Variable
Contract or Qualified Plan, ordinarily do not cause the corresponding contract
holder or plan participant to recognize income or gain for federal income tax
purposes. See the contract prospectus or the governing documents of your
Qualified Plan for information regarding the federal income tax treatment of the
distributions to your Variable Contract or Qualified Plan and the holders of the
contracts or plan participants.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you invest in the Portfolio through a Variable Contract issued by an insurance
company or through a Qualified Plan that, in turn, was purchased
or serviced through an insurance company, broker-dealer or other financial
intermediary, the Portfolio and its adviser or distributor or their affiliates
may: (1) make payments to the insurance company issuer of the Variable Contract
or to the company servicing the Qualified Plan; and (2) make payments to the
insurance company, broker-dealer or other financial intermediary. These payments
may create a conflict of interest by: (1) influencing the insurance company or
the company servicing the Qualified Plan to make the Portfolio available as an
investment option for the Variable Contract or the
Voya Small
Company Portfolio
52
Qualified
Plan; or (2) by influencing the broker-dealer or other intermediary and your
salesperson to recommend the Variable Contract or the
pension servicing agent and/or the Portfolio over other options. Ask your
salesperson or Qualified Plan administrator or visit your financial
intermediary's website for more information.
Voya Small
Company Portfolio
53
KEY PORTFOLIO INFORMATION
This
Prospectus contains information about each Portfolio and is designed to provide
you with important information to help you with
your investment decisions. Please read it carefully and keep it for future
reference.
Each
Portfolio's Statement of Additional Information (“SAI”) is
incorporated by reference into (legally made a part of) this Prospectus. It
identifies investment restrictions, more detailed risk descriptions, a
description of how the bond rating system works, and other information that may
be helpful to you in your decision to invest. You may obtain a copy, without
charge, from each Portfolio.
Neither
this Prospectus, nor the related SAI, nor other communications to shareholders,
such as proxy statements, is intended, or
should be read, to be or give rise to an agreement or contract between Voya
Balanced Portfolio, Inc.; Voya Intermediate Bond Portfolio; Voya
Government Money Market Portfolio; Voya Variable Funds; Voya Variable
Portfolios, Inc., the Directors/Trustees, or each Portfolio and any investor, or
to give rise to any rights to any shareholder or other person other than any
rights under federal or state law.
Other
Voya mutual funds may also be offered to the public that have similar names,
investment objectives, and principal investment
strategies as those of a Portfolio. You should be aware that each Portfolio is
likely to differ from these other Voya mutual funds in size and cash flow
pattern. Accordingly, the performance of each Portfolio can be expected to vary
from those of other Voya mutual funds.
Other
mutual funds and/or funds-of-funds may invest in a Portfolio. So long as a
Portfolio accepts investments by other investment
companies, it will not purchase securities of other investment companies, except
to the extent permitted under the Investment Company Act of 1940, as amended,
and the rules, regulations, and exemptive orders thereunder or under the terms
of an exemptive order granted by the SEC.
All
the Portfolios (except Voya Balanced Portfolio, Voya Government Money
Market Portfolio, Voya Growth and Income Portfolio, and
Voya Intermediate Bond Portfolio) are a series of Voya Variable
Portfolios, Inc., and Voya Balanced Portfolio is a series of
Voya Balanced Portfolio, Inc., each a Maryland corporation (each a
“Company”). Voya Government Money Market Portfolio is a series of
Voya Government Money Market Portfolio; Voya Growth and Income
Portfolio is a series of Voya Variable Funds; and Voya Intermediate
Bond Portfolio is a series of Voya Intermediate Bond Portfolio, each a
Massachusetts business trust (each a “Trust”). Each Portfolio is managed by Voya
Investments, LLC (“Voya Investments” or “Adviser”).
Portfolio
shares may be classified into different classes of shares. The classes of shares
of a Portfolio would be substantially the
same except for different expenses, certain related rights, and certain
shareholder services. All share classes of a Portfolio have a common investment
objective and investment portfolio.
Fundamental
Investment Policies
Fundamental
investment policies contained in the SAI may not be changed without shareholder
approval. Other policies and investment
strategies may be changed without a shareholder vote.
Non-Fundamental
Investment Policies
Certain
Portfolios have adopted non-fundamental investment policies to invest the
Portfolio's assets in securities that are consistent
with the Portfolio's name. For more information about these policies, please
consult the SAI.
Portfolio
Diversification
Each
Portfolio is diversified, as such term is defined in the Investment Company Act
of 1940 as amended, and the rules, regulations,
and applicable exemptive orders thereunder (“1940 Act”). A diversified fund may
not, as to 75% of its total assets, invest more than 5% of its total assets in
any one issuer and may not purchase more than 10% of the outstanding voting
securities of any one issuer (other than securities issued or guaranteed by the
U.S. government or any of its agencies or instrumentalities, or other investment
companies). A non-diversified fund is not limited by the 1940 Act in the
percentage of its assets that it may invest in the obligations of a single
issuer.
Investor
Diversification
Although
each Portfolio is designed to serve as a component of a diversified investment
portfolio of securities, no single mutual fund
can provide an appropriate investment program for all investors. You should
evaluate a Portfolio in the context of your personal financial situation,
investment objectives, and other investments.
54
KEY PORTFOLIO INFORMATION (continued)
Temporary
Defensive Strategies
When
the Adviser or sub-adviser anticipates unusual market, economic, political, or
other conditions, a Portfolio may temporarily depart
from its principal investment strategies as a defensive measure. In such
circumstances, a Portfolio may invest in securities believed to present less
risk, such as cash, cash equivalents, money market fund shares and other money
market instruments, debt securities that are high quality or higher quality than
normal, more liquid securities, or others. While a Portfolio invests
defensively, it may not achieve its investment objective. A Portfolio's
defensive investment position may not be effective in protecting its value. It
is impossible to predict accurately how long such alternative strategies may be
utilized.
Percentage
and Rating Limitations
The percentage and
rating limitations on Portfolio investments listed in this Prospectus apply at
the time of investment.
Investment
Not Guaranteed
Please
note your investment is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation, the
Federal Reserve Board, or any other government agency.
Shareholder
Reports
Each Portfolio's
fiscal year ends December 31. Copies of each Portfolio's annual
and semi-annual shareholder reports are no longer sent by mail or e-mail, unless
you specifically request copies of the reports. Instead, the reports are
available on the Voya funds’ website ( www.individuals.voya.com/literature), and
you will be notified by mail each time a report is posted and provided with a
website link to access the report. You may elect to receive shareholder reports
and other communications from a fund electronically anytime by contacting your
financial intermediary (such as a broker-dealer or bank) or, if you are a direct
investor, by calling 1-800-992-0180 or by sending an e-mail request to
[email protected].
55
MORE INFORMATION ABOUT THE PORTFOLIOS
Additional
Information About the Investment Objective
Each
Portfolio's investment objective is non-fundamental and may be changed by a vote
of the Portfolio's Board, without shareholder
approval. A Portfolio will provide 60 days' prior written notice of any change
in a non-fundamental investment objective. There is no guarantee a Portfolio
will achieve its investment objective.
Additional
Information About Principal Investment Strategies
For
a complete description of each Portfolio's principal investment strategies,
please see the Portfolio's summary prospectus or the
summary section of this Prospectus.
Voya Balanced
Portfolio
The
Portfolio seeks to achieve its investment objectives by investing in a
diversified portfolio of various asset classes and investment
strategies managed by the sub-adviser (“Sub-Adviser”). The Portfolio may invest
in domestic and international securities, including emerging markets securities,
which may be denominated in foreign currencies or in the U.S. dollar. The
Portfolio may invest in sovereign debt, which is debt issued or guaranteed by
foreign government entities. The Portfolio may also invest in derivative
instruments including futures, swaps (including interest rate swaps, total
return swaps, and credit default swaps) and options, among others for different
purposes, including hedging (to seek to offset risks associated with an
investment, currency exposure or market conditions), to seek to enhance returns,
to earn income, or as a substitute for a position in an underlying
asset.
The
Portfolio may also invest in other investment companies, including up to 30% of
its net assets in exchange-traded funds to gain
exposure to high yield bonds (“junk bonds”), emerging markets debt, and other
securities to make tactical asset allocations, minimize risk, and assist in
managing cash. At least fifteen underlying investment companies (including
exchange-traded funds) will be available for the Portfolio’s investment at all
times and such underlying investment companies may be changed at the
Sub-Adviser’s discretion without notice to shareholders.
Equity
Portion
Equity
securities in which the Portfolio may invest include, but are not limited to:
common stocks, preferred stocks, securities
convertible into common stocks, and depositary receipts. The Portfolio may
invest in securities of companies of any market capitalization. The Portfolio
may invest in real estate-related securities, including real estate investment
trusts, and natural resource/commodity securities. The Portfolio is a core
product and may invest in either “growth” securities, “value”
securities, or both.
56
MORE INFORMATION ABOUT THE PORTFOLIOS (continued)
Fixed-Income
Portion
The fixed-income
securities in which the Portfolio may invest include, but are not limited to,
short-, intermediate-, and long-term bonds rated
investment-grade; international bonds; and high-yield bonds rated below
investment-grade, commonly known as “junk bonds;” and money market instruments.
The Portfolio may also invest in treasury inflation protected securities,
asset-backed securities, commercial and residential mortgage-backed securities,
other securitized and structured debt products (such as collateralized mortgage
obligations), and private placements.
While
the mix of equity and debt instruments will vary depending on the Sub-Adviser's
outlook on the markets, under normal
circumstances no more than 75% (and no less than 25%) of the Portfolio's total
assets will be invested in equity securities. The Sub-Adviser uses a proprietary
asset allocation strategy to determine the percentage of the Portfolio's net
assets to invest in each of the investment strategies and asset classes (“Target
Allocation”). The Target Allocation may be changed by the Sub-Adviser at any
time and actual allocations of the Portfolio's assets may deviate from the
Target Allocation. The Portfolio may be rebalanced periodically to return to the
Target Allocation.
In evaluating
investments for the Portfolio, the Sub-Adviser normally expects to take into
account environmental, social, or governance (“ESG”) factors, to
determine whether any or all of those factors might have a significant effect on
the performance, risks, or prospects of a company or issuer. The Sub-Adviser
intends to rely primarily on third-party evaluations of a company’s ESG standing
and/or on factors identified through its proprietary research as material to a
particular company or the industry in which it operates. The Sub-Adviser may
give environmental, social, and governance factors equal consideration or may
focus on one or more of those factors as it considers appropriate. The
Sub-Adviser may consider specific ESG metrics or a company’s progress or lack of
progress toward meeting ESG targets. ESG factors will be only one consideration
in the Sub-Adviser’s evaluation of any potential investment, and the effect, if
any, of ESG factors on the Sub-Adviser’s decision whether to invest in any case
will vary depending on the judgment of the Sub-Adviser.
The Portfolio
may lend portfolio securities on a short-term or long-term basis, up to
33 1∕3% of its total
assets.
Additional
Information Regarding the Fixed-Income Portion
The
fixed-income portion of the Portfolio includes short-, intermediate-, and
long-term bonds rated investment-grade or high-yield bonds
rated below investment-grade, commonly known as “junk bonds.” Investment-grade
bonds are those, which at the time of investment, are rated at least BBB- by
S&P Global Ratings, or Baa3 by Moody's Investors Service, Inc., or have an
equivalent rating by a nationally recognized statistical rating organizations,
or if not rated, determined by the Sub-Adviser to be of comparable
quality.
Generally,
with respect to the fixed-income portion of the Portfolio, the Sub-Adviser will
maintain a dollar-weighted average duration
between three and ten years. Duration is expressed as a number of years. The
bigger the duration number, the greater the interest rate risk or reward for
debt instrument prices. For example, the price of a bond fund with an average
duration of five years would be expected to fall approximately 5% if interest
rates rose by one percentage point. Conversely, the price of a bond fund with an
average duration of five years would be expected to rise approximately 5% if
interest rates drop by one percentage point. There are no restrictions on the
average maturity of the Portfolio or the maturity of any single investment. The
Portfolio may enter into purchase and sale contracts, or use other investment
techniques such as buy backs or dollar roll transactions and reverse repurchase
agreements. The Portfolio may invest in U.S. government securities. In addition,
the Portfolio may invest in high quality money market instruments. Such
instruments include high-quality debt instruments denominated in U.S. dollars,
repurchase agreements, corporate debt securities, commercial paper, asset-backed
securities, mortgage-backed securities, and certain obligations of U.S. and
foreign banks. The Portfolio may hold cash and cash equivalents. In addition to
other short-term investments, the Portfolio may invest in affiliated registered
and unregistered money market funds to manage the Portfolio’s cash pending
investment in other strategies.
Additional
Information Regarding the Asset Allocation Process
The
Sub-Adviser uses a proprietary asset allocation strategy to determine the
percentage of the Portfolio's net assets to invest in each
of the strategies. This approach is also intended, among other things, to
provide the benefit of lower volatility through asset diversification. To
determine the Target Allocation for the Portfolio, the Sub-Adviser: (i)
determines the Target Allocation for the Portfolio's investment in various asset
classes using its own proprietary modeling techniques and (ii) then determines
the strategies in which the Portfolio will invest to attain its Target
Allocation. In choosing an included strategy for an asset class, the Sub-Adviser
considers, among other factors, the degree to which the included
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MORE INFORMATION ABOUT THE PORTFOLIOS (continued)
strategy's
holdings or other characteristics correspond to the desired asset class. The
strategies used may include equity strategies
managed under either a fundamentally or quantitatively driven research process
in addition to fixed-income strategies that utilize proprietary fundamental and
quantitative techniques to identify bonds and sectors that are inexpensive
relative to other bonds or sectors based on their historical price
relationships. In all actively managed strategies, the Sub-Adviser seeks to add
undervalued securities at reasonable prices that have the potential to rise in
value.
The
Sub-Adviser may change the included strategies and asset classes at any time and
may, at any time, determine to make tactical
changes in the Portfolio's asset allocations depending on market conditions. The
Adviser will oversee the Sub-Adviser in the implementation of the Target
Allocation and the selection of included strategies by the
Sub-Adviser.
Additional
Information About the Principal Risks
All
mutual funds involve risk - some more than others - and there is always the
chance that you could lose money or not earn as much as
you hope. Each Portfolio's risk profile is largely a factor of the principal
securities in which it invests and investment techniques that it uses. Below is
a discussion of the principal risks associated with certain of the types of
securities in which a Portfolio may invest and certain of the investment
practices that a Portfolio may use. For more information about these and other
types of securities and investment techniques that may be used by each
Portfolio, see the SAI.
Many
of the investment techniques and strategies discussed in this Prospectus and in
the SAI are discretionary, which means that the
Adviser or sub-adviser can decide whether to use them. A Portfolio may invest in
these securities or use these techniques as part of the Portfolio's principal
investment strategies. However, the Adviser or sub-adviser may also use these
investment techniques or make investments in securities that are not a part of a
Portfolio's principal investment strategies.
The
discussions below expand on the risks included in each Portfolio's summary
section of the Prospectus. Please see the SAI for a
further discussion of the principal and other investment strategies employed by
each Portfolio.
Asset
Allocation:
Investment
performance depends on the manager’s skill in allocating assets among the asset
classes in which a Portfolio invests and in choosing investments within those
asset classes. There is a risk that the manager may allocate assets or
investments to an asset class that underperforms compared to other asset classes
or investments.
Bank
Instruments:
Bank
instruments include certificates of deposit, fixed time deposits, bankers’
acceptances, and other debt and deposit-type obligations issued by banks.
Changes in economic, regulatory or political conditions, or other events that
affect the banking industry may have an adverse effect on bank instruments or
banking institutions that serve as counterparties in transactions with a
Portfolio.
Cash/Cash
Equivalents:
Investments in cash
or cash equivalents may lower returns and result in potential lost opportunities
to participate in market appreciation which could negatively impact a
Portfolio’s performance and ability to achieve its investment
objective.
Company:
The
price of a company’s stock could decline or underperform for many reasons
including, among others, poor management, financial problems, reduced demand for
company goods or services, regulatory fines and judgments, or business
challenges. If a company declares bankruptcy or becomes insolvent, its stock
could become worthless.
Convertible
Securities:
Convertible
securities are securities that are convertible into or exercisable for common
stocks at a stated price or rate. Convertible securities are subject to the
usual risks associated with debt instruments, such as interest rate and credit
risk. In addition, because convertible securities react to changes in the value
of the stocks into which they convert, they are subject to market
risk.
The value of a convertible security will normally fluctuate in some proportion to
changes in the value of the underlying security because of the conversion or
exercise feature. However, the value of a convertible security may not increase
or decrease as rapidly as the underlying security. Convertible securities may be
rated below investment grade and therefore subject to greater levels of credit
risk and liquidity risk. In the event the issuer of a convertible security is
unable to meet its financial obligations, declares bankruptcy, or becomes
insolvent, a Portfolio could lose money; such events may also have the effect of
reducing a Portfolio's distributable income. There is a risk that a Portfolio
may convert a convertible security at an inopportune time, which may decrease
Portfolio returns.
Credit:
The
price of a bond or other debt instrument is likely to fall if the issuer’s
actual or perceived financial health deteriorates, whether because of broad
economic or issuer-specific reasons. In certain cases, the issuer could be late
in paying interest or principal, or could fail to pay its financial obligations
altogether.
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Credit
Default Swaps:
A
Portfolio may enter into credit default swaps, either as a buyer or a seller of
the swap. A buyer of a swap pays a fee to buy protection against the risk that a
security will default. If no default occurs, a Portfolio will have paid the fee,
but typically will recover nothing under the swap. A seller of a swap receives
payment(s) in return for an obligation to pay the counterparty the full notional
value of a security in the event of a default of the security issuer. As a
seller of a swap, a Portfolio would effectively add leverage to its portfolio
because, in addition to its total net assets, a Portfolio would be subject to
investment exposure on the full notional value of the swap. Credit default swaps
are particularly subject to counterparty, credit, valuation, liquidity and
leveraging risks and the risk that the swap may not correlate with its
underlying asset as expected. Certain standardized swaps are subject to
mandatory central clearing. Central clearing is expected to reduce counterparty
credit risk and increase liquidity; however, there is no assurance that central
clearing will achieve that result, and in the meantime, central clearing and
related requirements expose a Portfolio to new kinds of costs and risks. In
addition, credit default swaps expose a Portfolio to the risk of improper
valuation.
Currency:
To the
extent that a Portfolio invests directly or indirectly in foreign (non-U.S.)
currencies or in securities denominated in, or that trade in, foreign (non-U.S.)
currencies, it is subject to the risk that those foreign (non-U.S.) currencies
will decline in value relative to the U.S. dollar or, in the case of hedging
positions, that the U.S. dollar will decline in value relative to the currency
being hedged by a Portfolio through foreign currency exchange
transactions. Currency rates may
fluctuate significantly over short periods of time. Currency rates may be
affected by changes in market interest rates, intervention (or the failure to
intervene) by U.S. or foreign governments, central banks or supranational
entities such as the International Monetary Fund, by the imposition of currency
controls, or other political or economic developments in the United States or
abroad.
Deflation:
Deflation occurs
when prices throughout the economy decline over time - the opposite of
inflation. When there is deflation, the principal and income of an
inflation-protected bond will decline and could result in losses.
Derivative
Instruments:
Derivative
instruments are subject to a number of risks, including the risk of changes in
the market price of the underlying securities, credit risk with respect to the
counterparty, risk of loss due to changes in market interest rates and liquidity
and volatility risk. The amounts required to purchase certain derivatives may be
small relative to the magnitude of exposure assumed by a Portfolio. Therefore,
the purchase of certain derivatives may have an economic leveraging effect on a
Portfolio and exaggerate any increase or decrease in the net asset value.
Derivatives may not perform as expected, so a Portfolio may not realize the
intended benefits. When used for hedging purposes, the change in value of a
derivative may not correlate as expected with the currency, security or other
risk being hedged. When used as an alternative or substitute for direct cash
investment, the return provided by the derivative may not provide the same
return as direct cash investment. In addition, given their complexity,
derivatives expose a Portfolio to the risk of improper valuation. Generally,
derivatives are sophisticated financial instruments whose performance
is derived, at least in part, from the performance of an underlying asset or
assets. Derivatives include, among other things, swap agreements, options,
forward foreign currency exchange contracts, and futures. Investments in
derivatives are generally negotiated over-the-counter with a single counterparty
and as a result are subject to credit risks related to the counterparty’s
ability or willingness to perform its obligations; any deterioration in the
counterparty’s creditworthiness could adversely affect the value of the
derivative. In addition, derivatives and their underlying securities may
experience periods of illiquidity which could cause a Portfolio to hold a
security it might otherwise sell, or to sell a security it otherwise might hold
at inopportune times or at an unanticipated price. A manager might imperfectly
judge the direction of the market. For instance, if a derivative is used as a
hedge to offset investment risk in another security, the hedge might not
correlate to the market’s movements and may have unexpected or undesired results
such as a loss or a reduction in gains. The U.S. government has enacted
legislation that provides for new regulation of the derivatives market,
including clearing, margin, reporting, and registration requirements. The
European Union (and other countries outside of the European Union) has
implemented similar requirements, which affects a Portfolio when it enters into
a derivatives transaction with a counterparty organized in that country or
otherwise subject to that country's derivatives regulations. Because these
requirements are new and evolving (and some of the rules are not yet final),
their ultimate impact remains unclear. Central clearing is expected to reduce
counterparty risk and increase liquidity, however, there is no assurance that it
will achieve that result, and in the meantime, central clearing and related
requirements expose a Portfolio to new kinds of costs and risks.
Dividend:
Companies that
issue dividend yielding equity securities are not required to continue to pay
dividends on such securities. Therefore, there is the possibility that such
companies could reduce or eliminate the payment of dividends in the future. As a
result, a Portfolio’s ability to execute its investment strategy may be
limited.
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Environmental,
Social and/or Governance (strategy): The Sub-Adviser’s consideration of
environmental, social and/or governance (“ESG”) factors in selecting investments
for a Portfolio may cause it to forego other favorable investments that other
investors who do not consider similar factors or who evaluate them differently
might select. This may cause a Portfolio to underperform the stock market or
relevant benchmark as a whole or other funds that do not consider ESG factors or
that use such factors differently. The Sub-Adviser’s consideration of ESG
factors is qualitative and subjective by nature, and it is possible that it will
have an adverse effect on a Portfolio’s performance. In evaluating a company or
issuer in light of ESG factors, the Sub-Adviser may consider information and
data obtained through voluntary or third-party reporting that may be incomplete
or inaccurate. It is possible the companies or issuers identified through the
Sub-Adviser’s consideration of ESG factors will not operate as expected and will
not exhibit positive ESG characteristics to the extent the Sub-Adviser might
have anticipated.
Floating
Rate Loans: In the event a borrower fails to
pay scheduled interest or principal payments on a floating rate loan (which can
include certain bank loans), a Portfolio will experience a reduction in its
income and a decline in the market value of such investment. This will likely
reduce the amount of dividends paid and may lead to a decline in the net asset
value. If a floating rate loan is held by a Portfolio through another financial
institution, or a Portfolio relies upon another financial institution to
administer the loan, the receipt of scheduled interest or principal payments may
be subject to the credit risk of such financial institution. Investors in
floating rate loans may not be afforded the protections of the anti-fraud
provisions of the Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended, because loans may not be considered
“securities” under such laws. Additionally, the value of collateral, if any,
securing a floating rate loan can decline or may be insufficient to meet the
issuer’s obligations under the loan. Furthermore, such collateral may be
difficult to liquidate. No active trading market may exist for many floating
rate loans and many floating rate loans are subject to restrictions on resale.
Transactions in loans typically settle on a delayed basis and may take longer
than 7 days to settle. As a result, a Portfolio may not receive the proceeds
from a sale of a floating rate loan for a significant period of time. Delay in
the receipts of settlement proceeds may impair the ability of a Portfolio to
meet its redemption obligations. It may also limit the ability of a Portfolio to
repay debt, pay dividends, or to take advantage of new investment
opportunities.
Foreign
Investments/Developing and Emerging Markets: To the extent a Portfolio invests
in securities of issuers in markets outside the United States, its share price
may be more volatile than if it invested in securities of issuers in the U.S.
market due to, among other things, the following factors: comparatively unstable
political, social and economic conditions and limited or ineffectual judicial
systems; wars; comparatively small market sizes, making securities less liquid
and securities prices more sensitive to the movements of large investors and
more vulnerable to manipulation; governmental policies or actions, such as high
taxes, restrictions on currency movements, replacement of currency, potential
for default on sovereign debt, trade or diplomatic disputes, which may include
the imposition of economic sanctions or other measures by the United States or
other governments and supranational organizations, creation of monopolies, and
seizure of private property through confiscatory taxation and expropriation or
nationalization of company assets; incomplete, outdated, or unreliable
information about securities issuers due to less stringent market regulation and
accounting, auditing and financial reporting standards and practices;
comparatively undeveloped markets and weak banking and financial systems; market
inefficiencies, such as higher transaction costs, and administrative
difficulties, such as delays in processing transactions; and fluctuations in
foreign currency exchange rates, which could reduce gains or widen losses.
Economic or other sanctions imposed on a foreign country or issuer by the U.S.,
or on the U.S. by a foreign country, could impair a Portfolio's ability to buy,
sell, hold, receive, deliver, or otherwise transact in certain securities. In
addition, foreign withholding or other taxes could reduce the income available
to distribute to shareholders, and special U.S. tax considerations could apply
to foreign investments. Depositary receipts are subject to risks of foreign
investments and might not always track the price of the underlying foreign
security. Markets and economies throughout the world are becoming increasingly
interconnected, and conditions or events in one market, country or region may
adversely impact investments or issuers in another market, country or
region. Foreign
investment risks may
be greater in developing and emerging markets than in developed markets, for
such reasons as social or political unrest, heavy economic dependence on
international aid, agriculture or exports (particularly commodities),
undeveloped or overburdened infrastructures and legal systems, vulnerability to
natural disasters, significant and unpredictable government intervention in
markets or the economy, volatile currency exchange rates, currency devaluations,
runaway inflation, environmental problems, and business practices that depart
from norms for developed countries and less developed or liquid markets
generally. The Public Company Accounting Oversight Board, which regulates
auditors of U.S. public companies, is unable to inspect audit work papers in
certain foreign countries. Investors in foreign countries often have limited
rights and few practical remedies to pursue shareholder claims, including class
actions or fraud
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claims, and the
ability of the SEC, the U.S. Department of Justice and other authorities to
bring and enforce actions against foreign issuers or foreign
persons is limited. In March 2017, the United Kingdom (“UK”) formally notified
the European Council of its intention to leave the EU and on January 31, 2020
withdrew from the EU (commonly known as “Brexit”). On December 30, 2020, the UK
voted in favor of the UK-EU Trade and Cooperation Agreement. The agreement
governs the new relationship between the UK and the EU with respect to trading
goods and services but critical aspects of the relationship remain unresolved
and subject to further negotiation and agreement. Brexit has resulted in
volatility in European and global markets and could have negative long-term
impacts on financial markets in the UK and throughout Europe. There is
considerable uncertainty about the potential consequences of Brexit and how the
financial markets will react. As this process unfolds, markets may be further
disrupted. Given the size and importance of the UK’s economy, uncertainty about
its legal, political and economic relationship with the remaining member states
of the EU may continue to be a source of instability.
Growth
Investing:
Prices
of growth stocks are more sensitive to investor perceptions of the issuing
company’s growth potential and may fall quickly and significantly if investors
suspect that actual growth may be less than expected. There is a risk that funds
that invest in growth-oriented stocks may underperform other funds that invest
more broadly. Growth stocks tend to be more volatile than value stocks, and may
underperform the market as a whole over any given time period. Growth-oriented
stocks typically sell at relatively high valuations as compared to other types
of securities.
Securities of growth companies may be more volatile than other stocks because
they usually invest a high portion of earnings in their business, and they may
lack the dividends of value stocks that can cushion stock prices in a falling
market. The market may not favor growth-oriented stocks or may not favor
equities at all. In addition, earnings disappointments may lead to sharply
falling prices because investors buy growth stocks in anticipation of superior
earnings growth. Historically, growth-oriented stocks have been more volatile
than value-oriented stocks.
High-Yield
Securities:
Lower
quality securities (including securities that have fallen below investment-grade
and are classified as “junk bonds” or “high yield securities”) have greater
credit risk and liquidity risk than higher quality (investment-grade)
securities, and their issuers' long-term ability to make payments is considered
speculative. Prices of lower quality bonds or other debt instruments are also
more volatile, are more sensitive to negative news about the economy or the
issuer, and have greater liquidity and price volatility risk.
Inflation-Indexed
Bonds:
If the
index measuring inflation falls, the principal value of inflation-indexed bonds
will be adjusted downward, and consequently the interest payable on these
securities (calculated with respect to a smaller principal amount) will be
reduced. In addition, inflation-indexed bonds are subject to the usual risks
associated with debt instruments, such as interest rate and credit risk.
Repayment of the original bond principal upon maturity (as adjusted for
inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds.
For bonds that do not provide a similar guarantee, the adjusted principal value
of the bond repaid at maturity may be less than the original
principal.
Interest
in Loans:
The
value and the income streams of interests in loans (including participation
interests in lease financings and assignments in secured variable or floating
rate loans) will decline if borrowers delay payments or fail to pay altogether.
A significant rise in market interest rates could increase this risk. Although
loans may be fully collateralized when purchased, such collateral may become
illiquid or decline in value.
Interest
Rate: With bonds and other fixed rate
debt instruments, a rise in market interest rates generally causes values to
fall; conversely, values generally rise as market interest rates fall. The
higher the credit quality of the instrument, and the longer its maturity or
duration, the more sensitive it is likely to be to interest rate risk. Duration
is a measure of sensitivity of the price of a debt instrument to a change in
interest rate. As of the date of this Prospectus, the United States experiences
a low interest rate environment, which may increase a Portfolio’s exposure to
risks associated with rising market interest rates. Rising market interest rates
could have unpredictable effects on the markets and may expose fixed-income and
related markets to heightened volatility. To the extent that a Portfolio invests
in fixed-income securities, an increase in market interest rates may lead to
increased redemptions and increased portfolio turnover, which could reduce
liquidity for certain investments, adversely affect values, and increase costs.
Increased redemptions may cause a Portfolio to liquidate portfolio positions
when it may not be advantageous to do so and may lower returns. If dealer
capacity in fixed-income markets is insufficient for market conditions, it may
further inhibit liquidity and increase volatility in the fixed-income markets.
Further, recent and potential future changes in government policy may affect
interest rates. Negative or very low interest rates could magnify the risks
associated with changes in interest rates. In general, changing interest rates,
including rates that fall below zero, could have unpredictable effects on
markets
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and
may expose fixed-income and related markets to heightened volatility. Changes to
monetary policy by the Federal Reserve Board or
other regulatory actions could expose fixed-income and related markets to
heightened volatility, interest rate sensitivity and reduced liquidity, which
may impact a Portfolio’s operations and return potential.
Investing
through Bond Connect: Chinese debt
instruments trade on the China Interbank Bond Market (“CIBM”) and may be
purchased through a market access program that is designed to, among other
things, enable foreign investment in the People’s Republic of China (“Bond
Connect”). There are significant risks inherent in investing in Chinese debt
instruments, similar to the risks of other fixed-income securities markets in
emerging markets. The prices of debt instruments traded on the CIBM may
fluctuate significantly due to low trading volume and potential lack of
liquidity. The rules to access debt instruments that trade on the CIBM through
Bond Connect are relatively new and subject to change, which may adversely
affect a Portfolio's ability to invest in these instruments and to enforce its
rights as a beneficial owner of these instruments. Trading through Bond Connect
is subject to a number of restrictions that may affect a Portfolio’s investments
and returns.
The
Chinese economy is generally considered an emerging and volatile market.
Although China has experienced a relatively stable
political environment in recent years, there is no guarantee that such stability
will be maintained in the future. Political, regulatory and diplomatic events,
such as the U.S.-China “trade war” that intensified in 2018, could have an
adverse effect on the Chinese or Hong Kong economies and on investments made
through China Connect programs.
Investment
Model:
A manager’s proprietary model may not adequately allow for existing or
unforeseen market factors or the interplay between such factors. The proprietary
models used by a manager to evaluate securities or securities markets are based
on the manager’s understanding of the interplay of market factors and do not
assure successful investment. The markets, or the price of individual
securities, may be affected by factors not foreseen in developing the
models. Portfolios that
are actively managed, in whole or in part, according to a quantitative
investment model can perform
differently from the market as a whole based on the investment model and the
factors used in the analysis, the weight placed on each factor, and changes from
the factors’ historical trends. Mistakes in the construction and implementation
of the investment models (including, for example, data problems and/or software
issues) may create errors or limitations that might go undetected or are
discovered only after the errors or limitations have negatively impacted
performance. There is no guarantee that the use of these investment models will
result in effective investment decisions for a Portfolio.
LIBOR: The obligations of the parties
under many financial arrangements, such as debt instruments (including senior
loans) and derivatives, may be determined based in whole or in part on the
London Inter-Bank Offered Rate (“LIBOR”). In 2017, the UK Financial Conduct
Authority announced its intention to cease compelling banks to provide the
quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the
administrator of LIBOR, ceased publication of most LIBOR settings on a
representative basis at the end of 2021 and is expected to cease publication of
a majority of U.S. dollar LIBOR settings on a representative basis after June
30, 2023. In addition, global regulators have announced that, with limited
exceptions, no new LIBOR-based contracts should be entered into after 2021.
Actions by regulators have resulted in the establishment of alternative
reference rates to LIBOR in many major currencies, including among others a
Secured Overnight Funding Rate (“SOFR”) for U.S. dollar LIBOR. Discontinuance of
LIBOR and adoption/implementation of alternative rates pose a number of risks,
including, among others, whether any substitute rate will experience the market
participation and liquidity necessary to provide a workable substitute for
LIBOR; the effect on parties’ existing contractual arrangements, hedging
transactions, and investment strategies generally from a conversion from LIBOR
to alternative rates; the effect on a Portfolio’s existing investments,
including the possibility that some of those investments may terminate or their
terms may be adjusted to the disadvantage of an a Portfolio; and the risk of
general market disruption during the transition period. Markets relying on new,
non-LIBOR rates are developing slowly, and may offer limited liquidity. The
general unavailability of LIBOR and the transition away from LIBOR to other
rates could have a substantial adverse impact on the performance of an a
Portfolio.
Liquidity:
If a
security is illiquid, a Portfolio might be unable to sell the security at a time
when a Portfolio’s manager might wish to sell, or at all. Further, the lack of
an established secondary market may make it more difficult to value illiquid
securities, exposing a Portfolio to the risk that the price at which it sells
illiquid securities will be less than the price at which they were valued when
held by a Portfolio. The prices of illiquid securities may be more volatile than
more liquid investments. The risks associated with illiquid securities may be
greater in times of financial stress. A Portfolio could lose money if it cannot
sell a security at the time and price that would be most beneficial to a
Portfolio.
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Market:
Stock
prices may be volatile or have reduced liquidity in response to real or
perceived impacts of factors including, but not limited to, economic conditions,
changes in market interest rates, and political events. Stock markets tend to be
cyclical, with periods when stock prices generally rise and periods when stock
prices generally decline. Any given stock market segment may remain out of favor
with investors for a short or long period of time, and stocks as an asset class
may underperform bonds or other asset classes during some periods. Additionally,
legislative, regulatory or tax policies or developments in these areas may
adversely impact the investment techniques available to a manager, add to costs
and impair the ability of a Portfolio to achieve its investment
objectives.
Market
Capitalization:
Stocks
fall into three broad market capitalization categories - large, mid, and small.
Investing primarily in one category carries the risk that, due to current market
conditions, that category may be out of favor with investors. If valuations of
large-capitalization companies appear to be greatly out of proportion to the
valuations of mid- or small-capitalization companies, investors may migrate to
the stocks of mid- and small-sized companies causing a fund that invests in
these companies to increase in value more rapidly than a fund that invests in
larger companies. Investing in mid- and small-capitalization companies may be
subject to special risks associated with narrower product lines, more limited
financial resources, smaller management groups, more limited publicly available
information, and a more limited trading market for their stocks as compared with
larger companies. As a result, stocks of mid- and small-capitalization companies
may be more volatile and may decline significantly in market
downturns.
Market
Disruption and Geopolitical: A Portfolio is subject to the risk
that geopolitical events will disrupt securities markets and adversely affect
global economies and markets. Due to the increasing interdependence among global
economies and markets, conditions in one country, market, or region might
adversely impact markets, issuers and/or foreign exchange rates in other
countries, including the U.S. Wars, terrorism, global health crises and
pandemics, and other geopolitical events have led, and in the future may lead,
to increased market volatility and may have adverse short- or long-term effects
on U.S. and world economies and markets generally. For example, the COVID-19
pandemic has resulted, and may continue to result, in significant market
volatility, exchange trading suspensions and closures, declines in global
financial markets, higher default rates, and a substantial economic downturn in
economies throughout the world. Natural and environmental disasters and systemic
market dislocations are also highly disruptive to economies and markets. In
addition, military action by Russia in Ukraine could adversely affect global
energy and financial markets and therefore could affect the value of a
Portfolio’s investments, including beyond a Portfolio’s direct exposure to
Russian issuers or nearby geographic regions. The extent and duration of the
military action, sanctions and resulting market disruptions are impossible to
predict and could be substantial. Those events as well as other changes in
non-U.S. and domestic economic, social, and political conditions also could
adversely affect individual issuers or related groups of issuers, securities
markets, interest rates, credit ratings, inflation, investor sentiment, and
other factors affecting the value of the investments of a Portfolio and the
Portfolio. Any of these occurrences could disrupt the operations of a Portfolio
and of the Portfolio’s service providers.
Mid-Capitalization
Company:
Investments in
mid-capitalization companies may involve greater risk than is customarily
associated with larger, more established companies due to the greater business
risks of a limited operating history, smaller size, limited markets and
financial resources, narrow product lines, less management depth, and more
reliance on key personnel. Consequently, the securities of mid-capitalization
companies may have limited market stability and may be subject to more abrupt or
erratic market movements than securities of larger, more established growth
companies or the market averages in general.
Money
Market Regulatory:
Changes in
government regulations may adversely affect the value of a security held by a
Portfolio. In addition, the SEC has adopted amendments to money market fund
regulation, which permit a Portfolio to impose discretionary or default
liquidity fees or temporary suspensions of redemption due to declines in a
Portfolio’s weekly liquid assets. As of the date of this Prospectus, the Board
has elected not to subject a Portfolio to such liquidity fees or temporary
suspensions of redemptions. These changes may result in reduced yields for money
market funds, including a Portfolio, which may invest in other money market
funds. The SEC or other regulators may adopt additional money market fund
reforms, which may impact the structure and operation or performance of a
Portfolio.
Mortgage-
and/or Asset-Backed Securities:
Defaults on, or low
credit quality or liquidity of the underlying assets of the asset-backed
(including mortgage-backed) securities may impair the value of these securities
and result in losses. There may be limitations on the enforceability of any
security interest or collateral granted with respect to those underlying assets
and the value of collateral may not satisfy the obligation upon default. These
securities also present a higher degree of prepayment and extension risk and
interest rate risk than do other types of debt instruments. Because of
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MORE INFORMATION ABOUT THE PORTFOLIOS (continued)
prepayment
risk and extension risk, small movements in interest rates (both increases and
decreases) may quickly and significantly
reduce the value of certain asset-backed securities. The value of longer-term
securities generally changes more in response to changes in market interest
rates than shorter term securities.
These
securities may be significantly affected by government regulation, market
interest rates, market perception of the
creditworthiness of an issuer servicer, and loan-to-value ratio of the
underlying assets. During an economic downturn, the mortgages, commercial or
consumer loans, trade or credit card receivables, installment purchase
obligations, leases, or other debt obligations underlying an asset-backed
security may experience an increase in defaults as borrowers experience
difficulties in repaying their loans which may cause the valuation of such
securities to be more volatile and may reduce the value of such securities.
These risks are particularly heightened for investments in asset-backed
securities that contain sub-prime loans which are loans made to borrowers with
weakened credit histories and often have higher default rates.
Municipal
Obligations:
The
municipal securities market is volatile and can be significantly affected by
adverse tax, legislative, or political changes and the financial condition of
the issuers of municipal securities. Among other risks, investments in municipal
securities are subject to the risk that the issuer may delay payment,
restructure its debt, or refuse to pay interest or repay principal on its
debt.
Municipal revenue obligations may be backed by the revenues generated from a
specific project or facility and include industrial development bonds and
private activity bonds. Private activity and industrial development bonds are
dependent on the ability of the facility’s user to meet its financial
obligations and the value of any real or personal property pledged as security
for such payment. Many municipal securities are issued to finance projects
relating to education, health care, transportation and utilities. Conditions in
those sectors may affect the overall municipal securities market. In addition,
municipal securities backed by current or anticipated revenues from a specific
project or specific asset may be adversely affected by the discontinuance of the
taxation supporting the project or asset or the inability to collect revenues
for the project or from assets. If an issuer of a municipal security does not
comply with applicable tax requirements for tax-exempt status, interest from the
security may become taxable and the security could decline in
value.
Natural
Resources/Commodity Securities:
The
operations and financial performance of companies in natural resources
industries may be directly affected by commodity prices. This risk is
exacerbated for those natural resources companies that own the underlying
commodity. Commodity prices
fluctuate for several reasons, including changes in market and economic
conditions, the impact of weather on demand, the impact of market interest rates
and inflation on production and demand, levels of domestic production and
imported commodities, energy conservation, labor unrest, domestic and foreign
governmental regulation and taxation and the availability of local, intrastate
and interstate transportation systems. Volatility of commodity prices, which may
lead to a reduction in production or supply, may also negatively impact the
performance of companies in natural resources industries that are solely
involved in the transportation, processing, storing, distribution or marketing
of commodities. Volatility of commodity prices may also make it more difficult
for companies in natural resources industries to raise capital to the extent the
market perceives that their performance may be directly or indirectly tied to
commodity prices.
Option
Writing:
When a
Portfolio writes a covered call option, it assumes the risk that it must sell
the underlying security at an exercise price that may be lower than the market
price of the security, and it gives up the opportunity to profit from a price
increase in the underlying security above the exercise price. In addition, a
Portfolio continues to bear the risk of a decline in the value of the underlying
securities.
When
a Portfolio writes an index call option, it assumes the risk that it must pay
the purchaser of the option a cash payment equal to
any appreciation in the value of the index over the strike price of the call
option during the option’s life. While the amount of a Portfolio’s potential
loss is offset by the premium received when the option was written, the amount
of the loss is theoretically unlimited. When a Portfolio purchases a call or put
option and that option expires unexercised, a Portfolio will experience a loss
in the amount of the premium it paid. By writing covered
call options on its
portfolio securities, a Portfolio may be unable to sell the underlying security
until the option expires or is exercised and may be less likely to sell the
underlying security to take advantage of new investment opportunities. If a call
option that a Portfolio has written expires unexercised, the Portfolio will
experience a gain in the amount of the premium; however, that gain may be offset
by a decline in the market value of the underlying security during the option
period.
If
an option that a Portfolio has purchased expires unexercised, the Portfolio will
experience a loss in the amount of the premium it
paid.
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MORE INFORMATION ABOUT THE PORTFOLIOS (continued)
There
can be no assurances that the option strategy will be effective and that
Portfolio will be able to exercise a transaction at a
desirable price and time.
Other
Investment Companies:
The
main risk of investing in other investment companies, including exchange-traded
funds (“ETFs”), is the risk that the value of the securities underlying an
investment company might decrease. Shares of investment companies that are
listed on an exchange may trade at a discount or premium from their net asset
value. You will pay a proportionate share of the expenses of those other
investment companies (including management fees, administration fees, and
custodial fees) in addition to the expenses of a Portfolio. The investment
policies of the other investment companies may not be the same as those of a
Portfolio; as a result, an investment in the other investment companies may be
subject to additional or different risks than those to which a Portfolio is
typically subject.
ETFs
are exchange-traded investment companies that are, in many cases, designed to
provide investment results corresponding to an
index. The value of the underlying securities can fluctuate in response to
activities of individual companies or in response to general market and/or
economic conditions. Additional risks of investments in ETFs include: (i) an
active trading market for an ETF’s shares may not develop or be maintained; or
(ii) trading may be halted if the listing exchanges’ officials deem such action
appropriate, the shares are delisted from the exchange, or the activation of
market-wide “circuit breakers” (which are tied to large decreases in stock
prices) halts trading generally. Other investment companies include Holding
Company Depositary Receipts (“HOLDRs”). Because HOLDRs concentrate in the stocks
of a particular industry, trends in that industry may have a dramatic impact on
their value.
Other
Investment Companies – Money Market Funds:
A
money market fund may only invest in other investment companies that qualify as
money market funds under Rule 2a-7 of the 1940 Act. The risk of investing in
such money market funds is that such money market funds may not comply with Rule
2a-7. You will pay a proportionate share of the expenses of those other
investment companies (including management fees, administration fees, and
custodial fees) in addition to the expenses of a Portfolio. The investment
policies of the other investment companies may not be the same as those of a
Portfolio; as a result, an investment in the other investment companies may be
subject to additional or different risks than those to which a Portfolio is
typically subject.
Prepayment
and Extension: Many types of debt
instruments are subject to prepayment and extension risk. Prepayment risk is the
risk that the issuer of a debt instrument will pay back the principal earlier
than expected. This may occur when interest rates decline. Prepayment may expose
a Portfolio to a lower rate of return upon reinvestment of principal. Also, if a
debt instrument subject to prepayment has been purchased at a premium, the value
of the premium would be lost in the event of prepayment. Extension risk is the
risk that the issuer of a debt instrument will pay back the principal later than
expected. This may occur when interest rates rise. This may negatively affect
performance, as the value of the debt instrument decreases when principal
payments are made later than expected. Additionally, a Portfolio may be
prevented from investing proceeds it would have received at a given time at the
higher prevailing interest rates.
Real
Estate Companies and Real Estate Investment Trusts (“REITs”): Investing in real estate companies
and REITs may subject a Portfolio to risks similar to those associated with the
direct ownership of real estate, including losses from casualty or condemnation,
changes in local and general economic conditions, supply and demand, market
interest rates, zoning laws, regulatory limitations on rents, property taxes,
environmental problems, overbuilding, high foreclosure rates and operating
expenses in addition to terrorist attacks, wars, or other acts that destroy real
property. Some REITs may invest in a limited number of properties, in a narrow
geographic area or in a single property type, which increases the risk that a
Portfolio could be unfavorably affected by the poor performance of a single
investment or investment type. These companies are also sensitive to factors
such as changes in real estate values and property taxes, market interest rates,
cash flow of underlying real estate assets, supply and demand, and the
management skill and creditworthiness of the issuer. Borrowers could default on
or sell investments the REIT holds, which could reduce the cash flow needed to
make distributions to investors. In addition, REITs may also be affected by tax
and regulatory requirements in that a REIT may not qualify for favorable tax
treatment or regulatory exemptions. REITs require specialized management and pay
management expenses. A Portfolio will indirectly bear its proportionate share of
expenses, including management fees, paid by each REIT in which it
invests.
Repurchase
Agreements:
In the
event that the other party to a repurchase agreement defaults on its
obligations, a Portfolio would generally seek to sell the underlying security
serving as collateral for the repurchase agreement. However, the value of
collateral may be insufficient to satisfy the counterparty's obligation and/or a
Portfolio may encounter
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MORE INFORMATION ABOUT THE PORTFOLIOS (continued)
delay
and incur costs before being able to sell the security. Such a delay may involve
loss of interest or a decline in price of the
security, which could result in a loss. In addition, if a Portfolio is
characterized by a court as an unsecured creditor, it would be at risk of losing
some or all of the principal and interest involved in the
transaction.
Restricted
Securities:
Securities that are
not registered for sale to the public under the Securities Act of 1933, as
amended, are referred to as “restricted securities.” These securities may be
sold in private placement transactions between issuers and their purchasers and
may be neither listed on an exchange nor traded in other established markets.
Many times these securities are subject to legal or contractual restrictions on
resale. As a result of the absence of a public trading market, the prices of
these securities may be more volatile, less liquid and more difficult to value
than publicly traded securities. The price realized from the sale of these
securities could be less than the amount originally paid or less than their fair
value if they are resold in privately negotiated transactions. In addition,
these securities may not be subject to disclosure and other investment
protection requirements that are afforded to publicly traded securities. Certain
investments may include investment in smaller, less seasoned issuers, which may
involve greater risk.
Securities
Lending:
Securities lending
involves two primary risks: “ investment risk ” and “ borrower default risk. ”
When lending securities, a Portfolio will receive cash or U.S. government
securities as collateral. Investment risk is the risk that a Portfolio will lose
money from the investment of the cash collateral received from the borrower.
Borrower default risk is the risk that a Portfolio will lose money due to the
failure of a borrower to return a borrowed security. Securities lending may
result in leverage. The use of leverage may exaggerate any increase or decrease
in the net asset value, causing a Portfolio to be more volatile. The use of
leverage may increase expenses and increase the impact of a Portfolio’s other
risks.
A
Portfolio seeks to minimize investment risk by limiting the investment of cash
collateral to high-quality instruments of short maturity.
In the event of a borrower default, a Portfolio will be protected to the extent
a Portfolio is able to exercise its rights in the collateral promptly and the
value of such collateral is sufficient to purchase replacement securities. A
Portfolio is protected by its securities lending agent, which has agreed to
indemnify a Portfolio from losses resulting from borrower default.
Small-Capitalization
Company:
Investments in
small-capitalization companies may involve greater risk than is customarily
associated with larger, more established companies due to the greater business
risks of a limited operating history, small size, limited markets and financial
resources, narrow product lines, less management depth and more reliance on key
personnel. The securities of smaller companies are subject to liquidity risk as
they are often traded over-the-counter and may not be traded in volume typical
on a national securities exchange.
Sovereign
Debt:
These
securities are issued or guaranteed by foreign government entities. Investments
in sovereign debt are subject to the risk that a government entity may delay
payment, restructure its debt, or refuse to pay interest or repay principal on
its sovereign debt. Some of these reasons may include cash flow problems,
insufficient foreign currency reserves, political considerations, social
changes, the relative size of its debt position to its economy or its failure to
put in place economic reforms required by the International Monetary Fund or
other multilateral agencies. If a government entity defaults, it may ask for
more time in which to pay or for further loans. There is no legal process for
collecting sovereign debts that a government does not pay or bankruptcy
proceeding by which all or part of sovereign debt that a government entity has
not repaid may be collected.
U.S.
Government Securities and Obligations:
U.S.
government securities are obligations of, or guaranteed by, the U.S. government,
its agencies or government-sponsored enterprises. U.S. government securities are
subject to market and interest rate risk, and may be subject to varying degrees
of credit risk. Some U.S.
government securities are backed by the full
faith and credit of the U.S. government and are guaranteed as to both principal
and interest by the U.S. Treasury. These include direct obligations of the U.S.
Treasury such as U.S. Treasury notes, bills and bonds, as well as indirect
obligations including certain securities of the Government National Mortgage
Association, the Small Business Administration, and the Farmers Home
Administration, among others. Other U.S. government securities are not direct
obligations of the U.S. Treasury, but rather are backed by the ability to borrow
directly from the U.S. Treasury, including certain securities of the Federal
Financing Bank, the Federal Home Loan Bank, and the U.S. Postal Service. Still
other agencies and instrumentalities are supported solely by the credit of the
agency or instrumentality itself and are neither guaranteed nor insured by the
U.S. government and therefore involve greater risk. These include securities
issued by the Federal Home Loan Bank, the Federal Home Loan Mortgage
Corporation, and the Federal Farm Credit Bank, among others. Consequently, the
investor must look principally to the agency issuing or guaranteeing the
obligation
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MORE INFORMATION ABOUT THE PORTFOLIOS (continued)
for
ultimate repayment. No assurance can be given that the U.S. government would
provide financial support to such agencies if it is
not obligated to do so by law. The impact of greater governmental scrutiny into
the operations of certain agencies and government-sponsored enterprises may
adversely affect the value of securities issued by these entities. U.S.
government securities may be subject to varying degrees of credit risk and all
U.S. government securities may be subject to price declines due to changing
market interest rates. Securities directly supported by the full faith and
credit of the U.S. government have less credit risk.
Value
Investing:
Securities that
appear to be undervalued may never appreciate to the extent expected. Further,
because the prices of value-oriented securities tend to correlate more closely
with economic cycles than growth-oriented securities, they generally are more
sensitive to changing economic conditions, such as changes in market interest
rates, corporate earnings and industrial production. The manager may be wrong in
its assessment of a company’s value and the securities a Portfolio holds may not
reach their full values. A particular risk of a Portfolio’s value approach is
that some holdings may not recover and provide the capital growth anticipated or
a security judged to be undervalued may actually be appropriately priced. The
market may not favor value-oriented securities and may not favor equities at
all. During those periods, a Portfolio’s relative performance may suffer. There
is a risk that funds that invest in value-oriented stocks may underperform other
funds that invest more broadly.
When
Issued and Delayed Delivery Securities and Forward Commitments:
When
issued securities, delayed delivery securities and forward commitments involve
the risk that the security a Portfolio buys will lose value prior to its
delivery. These investments may result in leverage. The use of leverage may
exaggerate any increase or decrease in the net asset value, causing a Portfolio
to be more volatile. The use of leverage may increase expenses and increase the
impact of a Portfolio’s other risks. There also is the risk that the security
will not be issued or that the other party will not meet its obligation. If this
occurs, a Portfolio loses both the investment opportunity for the assets it set
aside to pay for the security and any gain in the security’s price.
Further
Information About Principal Risks
The following
provides additional information about certain aspects of the principal risks
described above.
Counterparty:
The
entity with which a Portfolio conducts portfolio-related business (such as
trading or securities lending), or that underwrites, distributes or guarantees
investments or agreements that a Portfolio owns or is otherwise exposed to, may
refuse or may become unable to honor its obligations under the terms of a
transaction or agreement. As a result, that Portfolio may sustain losses and be
less likely to achieve its investment objective. These risks may be greater when
engaging in over-the-counter transactions or when a Portfolio conducts business
with a limited number of counterparties.
Duration:
One
measure of risk for debt instruments is duration. Duration measures the
sensitivity of a bond’s price to market interest rate movements and is one of
the tools used by a portfolio manager in selecting debt instruments. Duration is
a measure of the average life of a bond on a present value basis which was
developed to incorporate a bond’s yield, coupons, final maturity and call
features into one measure. As a point of reference, the duration of a
non-callable 7% coupon bond with a remaining maturity of 5 years is
approximately 4.5 years and the duration of a non-callable 7% coupon bond with a
remaining maturity of 10 years is approximately 8 years. Material changes in
market interest rates may impact the duration calculation. For example, the
price of a bond with an average duration of 4.5 years would be expected to fall
approximately 4.5% if market interest rates rose by one percentage point.
Conversely, the price of a bond with an average duration of 4.5 years would be
expected to rise approximately 4.5% if market interest rates dropped by one
percentage point.
Investment
by Other Funds:
Various other funds and/or funds-of-funds, including some Voya funds, may invest
in a Portfolio. If investments by these other funds result in large inflows or
outflows of cash from a Portfolio, a Portfolio could be required to sell
securities or invest cash at times, or in ways, that could negatively impact its
performance, speed the realization of capital gains, or increase transaction
costs. While it is very difficult to predict the overall impact of these
transactions over time, there could be adverse effects on a Portfolio. These
transactions also could increase transaction costs or portfolio turnover or
affect the liquidity of a Portfolio’s portfolio. The manager will monitor
transactions by such funds-of-funds and will attempt to minimize any adverse
effects on a Portfolio as a result of these transactions. If shares of a
Portfolio are purchased by another fund in reliance on Section 12(d)(1)(G) of
the 1940 Act or Rule 12d1-4 thereunder, and the Portfolio purchases shares of
other investment companies in reliance
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MORE INFORMATION ABOUT THE PORTFOLIOS (continued)
on Rule
12d1-4, the Portfolio
will not be able to make new investments in other funds, including private
funds, if, as a result of such investment, more than 10% of the Portfolio‘s
assets would be invested in other funds or private funds, subject to certain
exceptions .
Leverage:
Certain
transactions and investment strategies may give rise to leverage. Such
transactions and investment strategies include, but are not limited to:
borrowing, dollar rolls, reverse repurchase agreements, loans of portfolio
securities, short sales, and the use of when-issued, delayed-delivery or
forward-commitment transactions. The use of certain derivatives may also
increase leveraging risk and adverse changes in the value or level of the
underlying asset, rate, or index may result in a loss substantially greater than
the amount paid for the derivative. The use of leverage may exaggerate any
increase or decrease in the net asset value, causing a Portfolio to be more
volatile. The use of leverage may increase expenses and increase the impact of a
Portfolio’s other risks. The use of leverage may cause a Portfolio to liquidate
portfolio positions when it may not be advantageous to do so to satisfy its
obligations or to meet regulatory requirements resulting in increased volatility
of returns. Leverage, including borrowing, may cause a Portfolio to be more
volatile than if a Portfolio had not been leveraged.
Manager:
A
Portfolio is subject to manager risk because it is an actively managed
investment portfolio. The adviser, the sub-adviser or each individual portfolio
manager will make judgments and apply investment techniques and risk analyses in
making investment decisions, but there can be no guarantee that these decisions
will produce the desired results. Many managers of
equity funds employ styles that are characterized as “value” or
“growth.” However, these terms can have different applications by different
managers. One manager’s value approach may be different from another, and one
manager’s growth approach may be different from another. For example, some value
managers employ a style in which they seek to identify companies that they
believe are valued at a more substantial or “deeper discount” to a company’s net
worth than other value managers. Therefore, some funds that are characterized as
growth or value can have greater volatility than other funds managed by other
managers in a growth or value style.
Operational:
A
Portfolio, its
service providers, and other market participants increasingly depend on complex
information technology and communications systems to conduct business functions.
These systems are subject to a number of different threats or risks that could
adversely affect a Portfolio and its shareholders, despite the efforts of a
Portfolio and its service providers to adopt technologies, processes, and
practices intended to mitigate these risks. Cyber-attacks, disruptions, or
failures that affect a Portfolio’s service providers, counterparties, market
participants, or issuers of securities held by a Portfolio may adversely affect
a Portfolio and its shareholders, including by causing losses or impairing the
Portfolio’s operations. Information relating to a Portfolio’s investments has
been and will in the future be delivered electronically. There are risks
associated with electronic delivery including, but not limited to, that e-mail
messages are not secure and may contain computer viruses or other defects, may
not be accurately replicated on other systems, or may be intercepted, deleted or
interfered with, without the knowledge of the sender or the intended
recipient.
68
PORTFOLIO HOLDINGS INFORMATION
A
description of each Portfolio's policies and procedures regarding the release of
portfolio holdings information is available in the
Portfolio's SAI. Portfolio holdings information can be reviewed online at
www.voyainvestments.com.
69
MANAGEMENT OF THE PORTFOLIOS
The
Investment Adviser
Voya
Investments, an Arizona limited liability company, serves as the investment
adviser to each Portfolio. Voya Investments has overall
responsibility for the management of each Portfolio. Voya Investments oversees
all investment advisory and portfolio management services and assists in
managing and supervising all aspects of the general day-to-day business
activities and operations of each Portfolio, including custodial, transfer
agency, dividend disbursing, accounting, auditing, compliance and related
services. Voya Investments is registered with the SEC as an investment
adviser.
The
Adviser is an indirect, wholly-owned subsidiary of Voya Financial, Inc. Voya
Financial, Inc. is a U.S.-based financial institution whose
subsidiaries operate in the retirement, investment, and insurance
industries.
Voya Investments'
principal office is located at 7337 East Doubletree Ranch Road, Suite 100,
Scottsdale, Arizona 85258. As of December 31, 2021,
Voya Investments managed approximately $96.3 billion in assets.
Management
Fee
The
Adviser receives an annual fee for its services to each Portfolio. The fee is
payable in monthly installments based on the average
daily net assets of each Portfolio.
The Adviser is
responsible for all of its own costs, including costs of the personnel required
to carry out its duties.
The
following table shows the aggregate annual management fee paid by each Portfolio
for the most recent fiscal year as a percentage of
that Portfolio’s average daily net assets.
|
|
Management
Fees |
|
Voya Balanced
Portfolio |
0.60% |
|
Voya Global High
Dividend Low Volatility Portfolio |
0.55% |
|
Voya Government
Money Market Portfolio |
0.35% |
|
Voya Growth
and Income Portfolio |
0.60% |
|
Voya Index
Plus LargeCap Portfolio |
0.45% |
|
Voya Index
Plus MidCap Portfolio |
0.50% |
|
Voya Index
Plus SmallCap Portfolio |
0.50% |
|
Voya Intermediate
Bond Portfolio |
0.50% |
|
Voya Small
Company Portfolio |
0.85% |
For information
regarding the basis for the Board’s approval of the investment advisory and
investment sub-advisory relationships, please refer to the
Portfolios' annual shareholder report dated December 31, 2021.
Expense
Limitation Agreement - Voya Government Money Market Portfolio
The distributor
and the Adviser have contractually agreed to waive a portion of their management
fees and distribution and/or shareholder servicing fees,
as applicable, and to reimburse certain expenses of the Portfolio to the extent
necessary to assist the Portfolio in maintaining a net yield of not less than
zero. There is no guarantee that the Portfolio will maintain such a yield. When
distribution fees are reduced, dealer compensation may be reduced to the same
extent. Management fees waived and expenses reimbursed by the Adviser are
subject to possible recoupment by the Adviser within three years. In no event
will the amount of the recoupment on any day exceed 20% of the yield (net of all
expenses) of the Portfolio on that day. Distribution and servicing fees waived
are not subject to recoupment. This arrangement will continue through at least
May 1, 2023.
The
Sub-Adviser and Portfolio Managers
The
Adviser has engaged a sub-adviser to provide the day-to-day management of each
Portfolio's portfolio. The sub-adviser is
an affiliate of the Adviser.
The
Adviser acts as a “manager-of-managers”
for each Portfolio. The Adviser has ultimate responsibility, subject to the
oversight of each Portfolio’s Board, to oversee any sub-advisers and to
recommend the hiring, termination, or replacement of sub-advisers. Each
Portfolio and the Adviser have received exemptive relief from the SEC which
permits the Adviser, with the approval of the Board but without obtaining
shareholder approval, to enter into or materially amend a sub-advisory agreement
with sub-advisers that are not affiliated with the Adviser (“non-affiliated
sub-advisers”) as well as sub-advisers that are indirect or direct, wholly-owned
subsidiaries of the Adviser or of another company that indirectly or directly
wholly owns the Adviser (“wholly-owned sub-advisers”).
70
MANAGEMENT OF THE PORTFOLIOS (continued)
Consistent
with the “manager-of-managers”
structure, the Adviser delegates to the sub-advisers of each Portfolio the
responsibility for day-to-day investment management subject to the Adviser’s
oversight. The Adviser is responsible for, among other things, monitoring the
investment program and performance of the sub-advisers. Pursuant to the
exemptive relief, the Adviser, with the approval of the Board, has the
discretion to terminate any sub-adviser (including terminating a non-affiliated
sub-adviser and replacing it with a wholly-owned sub-adviser), and to allocate
and reallocate the Portfolio’s assets among other sub-advisers.
The
Adviser’s selection of sub-advisers presents conflicts of interest. The Adviser
will have an economic incentive to select sub-advisers
that charge the lowest sub-advisory fees, to select sub-advisers affiliated with
it, or to manage a portion of a Portfolio itself. The Adviser may retain an
affiliated sub-adviser (or delay terminating an affiliated sub-adviser) in order
to help that sub-adviser achieve or maintain scale in an investment strategy or
increase its assets under management. The Adviser may select or retain a
sub-adviser affiliated with it even in cases where another potential sub-adviser
or an existing sub-adviser might charge a lower fee or have more favorable
historical investment performance.
In
the event that the Adviser exercises its discretion to replace a sub-adviser or
add a new sub-adviser, the Portfolio will provide
shareholders with information about the new sub-adviser and the new sub-advisory
agreement within 90 days. The appointment of a new sub-adviser or the
replacement of an existing sub-adviser may be accompanied by a change to the
name of the Portfolio and a change to the investment strategies of the
Portfolio.
Under
the terms of the sub-advisory agreement, the agreement can be terminated by the
Adviser, each Portfolio’s Board, or the
sub-adviser, provided that the conditions of such termination are met. In
addition, the agreement may be terminated by each Portfolio’s shareholders. In
the event a sub-advisory agreement is terminated, the sub-adviser may be
replaced subject to any regulatory requirements or the Adviser may assume
day-to-day investment management of the Portfolio.
The
“manager-of-managers”
structure and reliance on the exemptive relief has been approved by each
Portfolio’s shareholders.
Voya Investment
Management Co. LLC
Voya Investment
Management Co. LLC (“Voya IM” or “Sub-Adviser”), a
Delaware limited liability company, was founded in 1972 and is registered with
the SEC as an investment adviser. Voya IM is an indirect, wholly-owned
subsidiary of Voya Financial, Inc. and is an affiliate of the Adviser. Voya IM
has acted as adviser or sub-adviser to mutual funds since 1994 and has managed
institutional accounts since 1972. Voya IM's principal office is located at 230
Park Avenue, New York, New York 10169. As of December 31, 2021, Voya IM managed
approximately $175.7 billion in assets.
Voya Balanced
Portfolio
The following
individuals are jointly and primarily responsible for the day-to-day management
of the Portfolio.
Barbara
Reinhard, CFA, Portfolio Manager, joined Voya in 2016. Ms. Reinhard is the head
of asset allocation for Multi-Asset Strategies and
Solutions (“MASS”) at Voya Investment Management. In this role, she is
responsible for strategic and tactical asset allocation decisions for the MASS
team’s multi-asset strategies. Prior to joining Voya, Ms. Reinhard was the chief
investment officer for Credit Suisse Private Bank in the Americas from 2011 to
2016. In that role, she managed discretionary multi-asset portfolios, was a
member of the global asset allocation committee, and the pension investment
committee. Prior to that, Ms. Reinhard spent 20 years of her career at Morgan
Stanley.
Matthew
Toms, CFA, Portfolio Manager, and chief investment officer (“CIO”) of
fixed-income at Voya Investment Management, joined Voya IM in September 2009. In
this role, Mr. Toms leads a team of more than 100 investment professionals.
Before becoming CIO, Mr. Toms was head of public fixed-income at Voya Investment
Management, overseeing the investment teams responsible for investment grade
corporate, high yield corporate, structured products, mortgage-backed
securities, emerging market debt and money market strategies for Voya’s general
account and third-party business. Prior to joining Voya IM, Mr. Toms was
employed by Calamos Investments from March 2007 to September 2009, where he
established and grew their fixed-income business. From May 2000 to March 2007,
Mr. Toms was employed by Northern Trust and Lincoln National in various
different roles.
Paul
Zemsky, CFA, Portfolio Manager, and Chief Investment Officer of Voya IM's
Multi-Asset Strategies. He joined Voya IM in 2005 as
head of derivative strategies.
71
MANAGEMENT OF THE PORTFOLIOS (continued)
Voya Global High
Dividend Low Volatility Portfolio, Voya Index Plus LargeCap Portfolio,
Voya Index Plus MidCap Portfolio, and Voya Index Plus SmallCap
Portfolio
The following
individuals are jointly and primarily responsible for the day-to-day management
of each Portfolio.
Vincent
Costa, CFA, Portfolio Manager, also serves as Head of the global equities team
and as portfolio manager for the active
quantitative strategies and the U.S. large cap value portfolios. Mr. Costa
joined Voya IM in April 2006 as head of portfolio management for quantitative
equity. Prior to joining Voya IM, Mr. Costa managed quantitative equity
investments at both Merrill Lynch Investment Management and Bankers Trust
Company.
Peg
DiOrio, CFA, Portfolio Manager, is the head of quantitative equity portfolio
management at Voya IM and serves as a portfolio
manager for the active quantitative strategies. Prior to joining Voya IM in
2012, she was a quantitative analyst with Alliance Bernstein/Sanford C.
Bernstein for sixteen years where she was responsible for multivariate and time
series analysis for low volatility strategies, global equities, REITs and
options. Previously she was a senior investment planning analyst with Sanford C.
Bernstein.
Steve
Wetter, Portfolio Manager, is responsible for portfolio management of the index,
active quantitative, and smart beta strategies.
Mr. Wetter joined Voya IM in April 2012 and prior to that he was a portfolio
manager and trader at Mellon Asset Management (2007 – 2009), and Northern Trust
(2003 – 2007).
Kai
Yee Wong, Portfolio Manager, is responsible for the portfolio management of the
index, active quantitative, and smart beta
strategies. Prior to joining Voya IM in 2012, Ms. Wong worked as a senior equity
portfolio manager at Northern Trust, responsible for managing various global
indices including developed, emerging, real estate, Topix, and socially
responsible benchmarks (2003 – 2009).
Voya Government
Money Market Portfolio
The following
individual is responsible for the day-to-day management of the
Portfolio.
David
S. Yealy, Portfolio Manager, joined Voya IM in November 2004. Prior to joining
Voya IM, Mr. Yealy was a managing director with
Trusco Capital Management where he worked beginning in 1991 and where he was
responsible for over $9 billion of assets under management. During his 13-year
tenure, he was instrumental in the development and marketing of that firm's cash
management business.
Voya Growth
and Income Portfolio
The
Sub-Adviser utilizes a team for portfolio construction of Voya Growth and
Income Portfolio. The senior portfolio managers and all of
the sector analysts on the team participate in the process, with the sector
analysts determining the security selection for each of their sectors for the
dedicated portion of the overall portfolio. The senior portfolio manager is
responsible for the overall allocation of assets for the portfolio, including
management of the portfolio's overall risk profile.
The following
individuals are jointly and primarily responsible for the day-to-day management
of the Portfolio.
Vincent
Costa, CFA, Portfolio Manager, also serves as Head of the global equities team
and as portfolio manager for the active
quantitative strategies and the U.S. large cap value portfolios. Mr. Costa
joined Voya IM in April 2006 as head of portfolio management for quantitative
equity. Prior to joining Voya IM, Mr. Costa managed quantitative equity
investments at both Merrill Lynch Investment Management and Bankers Trust
Company.
James
Dorment, CFA, Portfolio Manager, serves on Voya IM’s global equity team for the
large-cap value strategies. Mr. Dorment joined
Voya IM in 2008 as an analyst covering the consumer sectors.
Gregory Wachsman,
CFA, Portfolio Manager, and equity analyst serves on Voya IM’s value team
covering the financials sector. Mr. Wachsman joined Voya IM
in March 2017. Prior to joining Voya IM, Mr. Wachsman was an equity analyst
where he covered U.S. banks, brokers, specialty finance and exchanges at Lord
Abbett & Co. from 2010-2017.
Voya Intermediate
Bond Portfolio
The following
individuals are jointly and primarily responsible for the day-to-day management
of the Portfolio.
Sean Banai, CFA,
Portfolio Manager, and head of portfolio management for the fixed-income
platform, joined Voya IM in 1999. Previously, Mr. Banai was
a senior portfolio manager and before that head of quantitative research for
proprietary fixed income. Prior to joining Voya IM in 1999, he was a partner in
a private sector company.
72
MANAGEMENT OF THE PORTFOLIOS (continued)
David
Goodson is the head of securitized fixed income and a Senior Portfolio Manager
for Voya IM’s non-agency and agency
mortgage-backed securities, commercial mortgage-backed securities and
asset-backed securities strategies. Prior to joining Voya IM in 2002, he was a
principal at an independent investment bank focused on asset-backed commercial
paper transactions. Mr. Goodson began his career as a vice-president in Wachovia
Securities’ asset-backed finance group, marketing and executing securitizations
for the bank’s corporate clients.
Randall
Parrish, CFA, serves as Senior Portfolio Manager and head of U.S. high-yield at
Voya IM. Before being named a portfolio manager
in 2007, Mr. Parrish served as a high-yield analyst focused on the media and
retail/consumer sectors. Prior to joining Voya IM, Mr. Parrish was a corporate
banker in leveraged finance with Sun Trust Bank and predecessors to Bank of
America.
Matthew
Toms, CFA, Portfolio Manager, and chief investment officer (“CIO”) of
fixed-income at Voya Investment Management, joined Voya IM in September 2009. In
this role, Mr. Toms leads a team of more than 100 investment professionals.
Before becoming CIO, Mr. Toms was head of public fixed-income at Voya Investment
Management, overseeing the investment teams responsible for investment grade
corporate, high yield corporate, structured products, mortgage-backed
securities, emerging market debt and money market strategies for Voya’s general
account and third-party business. Prior to joining Voya IM, Mr. Toms was
employed by Calamos Investments from March 2007 to September 2009, where he
established and grew their fixed-income business. From May 2000 to March 2007,
Mr. Toms was employed by Northern Trust and Lincoln National in various
different roles.
Voya Small
Company Portfolio
The following individual is
responsible for the day-to-day management of the Portfolio.
Joseph
Basset, CFA, Portfolio Manager, for Voya IM’s small cap growth and small cap
core strategies. Mr. Basset is also responsible
for covering the industrials, energy, and materials sectors. He joined Voya IM
in June 2005. Prior to joining Voya IM, Mr. Basset had been employed by Banc One
since 1998 where he covered semiconductor, information technology and
communications equipment companies and was an analyst for the One Group
Technology Fund.
Additional
Information Regarding the Portfolio Managers
The
SAI provides additional information about each portfolio manager's compensation,
other accounts managed by each portfolio
manager, and each portfolio manager’s ownership of securities in each
Portfolio.
The
Distributor
Voya Investments
Distributor, LLC (“Distributor”) is
the principal underwriter and distributor of each Portfolio. It is a Delaware
limited liability company with its principal offices at 7337 East Doubletree
Ranch Road, Suite 100, Scottsdale, Arizona 85258. The Distributor is an
indirect, wholly-owned subsidiary of Voya Financial, Inc. and is an affiliate of
the Adviser. See “Principal Underwriter” in the SAI.
The
Distributor is a member of the Financial Industry Regulatory Authority, Inc.
(“FINRA”). To obtain
information about FINRA member firms and their associated persons, you may
contact FINRA at www.finra.org or the Public Disclosure Hotline at
800-289-9999.
Contractual
Arrangements
Each
Portfolio has contractual arrangements with various service providers, which may
include, among others, investment advisers,
distributors, custodians and fund accounting agents, shareholder service
providers, and transfer agents, who provide services to each Portfolio.
Shareholders are not parties to, or intended (“third-party”) beneficiaries of,
any of those contractual arrangements, and those contractual arrangements are
not intended to create in any individual shareholder or group of shareholders
any right to enforce them against the service providers or to seek any remedy
under them against the service providers, either directly or on behalf of each
Portfolio. This paragraph is not intended to limit any rights granted to
shareholders under federal or state securities laws.
73
HOW SHARES ARE PRICED
Each
Portfolio is open for business every day the New York Stock Exchange
(“NYSE”) opens for
regular trading (each such day, a “Business Day”). The net asset value (“NAV”)
per share for each class of each Portfolio is determined each Business Day as of
the close of the regular trading session (“Market Close”), as determined by the
Consolidated Tape Association (“CTA”), the central distributor of transaction
prices for exchange-traded securities (normally 4:00 p.m. Eastern time unless
otherwise designated by the CTA). The data reflected on the consolidated tape
provided by the CTA is generated by various market centers, including all
securities exchanges, electronic communications networks, and third-market
broker-dealers. The NAV per share of each class of each Portfolio is calculated
by taking the value of the Portfolio’s assets attributable to that class,
subtracting the Portfolio’s liabilities attributable to that class, and dividing
by the number of shares of that class that are outstanding. On days when a
Portfolio is closed for business, Portfolio shares will not be priced and a
Portfolio does not transact purchase and redemption orders. To the extent a
Portfolio’s assets are traded in other markets on days when the Portfolio does
not price its shares, the value of the Portfolio’s assets will likely change and
you will not be able to purchase or redeem shares of the Portfolio.
Assets
for which market quotations are readily available are valued at market value. A
security listed or traded on an exchange is valued
at its last sales price or official closing price as of the close of the regular
trading session on the exchange where the security is principally traded or, if
such price is not available, at the last sale price as of the Market Close for
such security provided by the CTA. Bank loans are valued at the average of the
averages of the bid and ask prices provided to an independent loan pricing
service by brokers. Futures contracts are valued at the final settlement price
set by an exchange on which they are principally traded. Listed options are
valued at the mean between the last bid and ask prices from the exchange on
which they are principally traded. Investments in open-end registered investment
companies that do not trade on an exchange are valued at the end of day NAV 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 regular trading session on the exchange where the security is principally
traded.
When
a market quotation is not readily available or is deemed unreliable, each
Portfolio will determine a fair value for the relevant
asset in accordance with procedures adopted by the Portfolio’s Board. Such
procedures provide, for example, that:
•
Exchange-traded
securities are valued at the mean of the closing bid and ask.
•
Debt obligations
are valued using an evaluated price provided by an independent pricing service.
Evaluated prices provided by the pricing service may be determined without
exclusive reliance on quoted prices, and may reflect factors such as
institution-size trading in similar groups of securities, developments related
to specific securities, benchmark yield, quality, type of issue, coupon rate,
maturity individual trading characteristics and other market
data.
•
Securities traded
in the over-the-counter market are valued based on prices provided by
independent pricing services or market makers.
•
Options not listed
on an exchange are valued by an independent source using an industry accepted
model, such as Black-Scholes.
•
Centrally cleared swap agreements
are valued using a price provided by an independent pricing
service.
•
Over-the-counter
swap agreements are valued using a price provided by an independent pricing
service.
•
Forward foreign
currency exchange contracts are valued utilizing current and forward rates
obtained from an independent pricing service. Such prices from the third party
pricing service are for specific settlement periods and each Portfolio’s forward
foreign currency exchange contracts are valued at an interpolated rate between
the closest preceding and subsequent period reported by the independent pricing
service.
•
Securities for
which market prices are not provided by any of the above methods may be valued
based upon quotes furnished by brokers.
The
prospectuses of the open-end registered investment companies in which each
Portfolio may invest explain the circumstances under
which they will use fair value pricing and the effects of using fair value
pricing.
Foreign
securities’ (including forward foreign currency exchange contracts) prices are
converted into U.S. dollar amounts using the
applicable exchange rates as of Market Close. If market quotations are available
and believed to be reliable for foreign exchange-traded equity securities, the
securities will be valued at the market quotations. Because trading hours for
certain foreign securities end before Market Close, closing market quotations
may become unreliable. An independent pricing service determines the degree of
certainty, based on historical data, that the closing price in the
74
HOW SHARES ARE PRICED (continued)
principal
market where a foreign security trades is not the current value as of Market
Close. Foreign securities’ prices meeting the
approved degree of certainty that the price is not reflective of current value
will be valued by the independent pricing service using pricing models designed
to estimate likely changes in the values of those securities between the times
in which the trading in those securities is substantially completed and Market
Close. Multiple factors may be considered by the independent pricing service in
determining the value of such securities and may include information relating to
sector indices, American Depositary Receipts and domestic and foreign index
futures.
All other assets
for which market quotations are not readily available or became unreliable (or
if the above fair valuation methods are unavailable or
determined to be unreliable) are valued at fair value as determined in good
faith by or under the supervision of the Board following procedures approved by
the Board. Issuer specific events, transaction price, position size, nature and
duration of restrictions on disposition of the security, market trends, bid/ask
quotes of brokers and other market data may be reviewed in the course of making
a good faith determination of a security’s fair value. Valuations change in
response to many factors including the historical and prospective earnings of
the issuer, the value of the issuer’s assets, general economic conditions,
interest rates, investor perceptions and market liquidity. Because of the
inherent uncertainties of fair valuation, the values used to determine each
Portfolio’s NAV may materially differ from the value received upon actual sale
of those investments. Thus, fair valuation may have an unintended dilutive or
accretive effect on the value of shareholders’ investments in each Portfolio.
Each Portfolio’s fair value policies and procedures and valuation practices may
be subject to change as a result of new Rule 2a-5 under the 1940
Act.
When
your Variable Contract or Qualified Plan is buying shares of a Portfolio, it
will pay the NAV that is next calculated after the order
from the Variable Contract owner or Qualified Plan participant is received in
proper form. When the Variable Contract owner or Qualified Plan participant is
selling shares, it will normally receive the NAV that is next calculated after
the order form is received from the Variable Contract owner or Qualified Plan
participant in proper form. Investments will be processed at the NAV next
calculated after an order is received and accepted by a Portfolio or its
designated agent. In order to receive that day's price, your order must be
received by Market Close.
Voya Government
Money Market Portfolio
Voya Government
Money Market Portfolio uses the amortized cost method to value its portfolio
securities and seeks to maintain a
constant NAV of $1.00 per share, although there may be circumstances under which
this goal cannot be achieved. The amortized cost method involves valuing a
security at its cost and amortizing any discount or premium over the period
until maturity, regardless of the impact of fluctuating interest rates or the
market value of the security. Although the Portfolio's Board has established
procedures designed to stabilize, to the extent reasonably possible, the share
price of the Portfolio, there can be no assurance that the Portfolio's NAV can
be maintained at $1.00 per share.
75
HOW TO BUY AND SELL SHARES
Each Portfolio's
shares may be offered to insurance company separate accounts serving as
investment options under Variable Contracts, Qualified Plans
outside the separate account context, custodial accounts, certain investment
advisers and their affiliates in connection with the creation or management of a
Portfolio, other investment companies (as permitted by the 1940 Act), and other
investors as permitted by the diversification and other requirements of section
817(h) of the Internal Revenue Code of 1986, as amended (the “Code”) and the
underlying U.S. Treasury Regulations. Class R6 shares are only offered to
investors that do not require a Portfolio or an affiliate of a Portfolio
(including the Adviser and any affiliate of the Adviser) to make, and a
Portfolio or affiliate does not pay, any type of servicing, administrative, or
revenue sharing payments with respect to Class R6 shares. Notwithstanding the
foregoing, affiliates of Voya, including affiliates that are intermediaries that
sell Class R6 shares of a Portfolio, may benefit financially from the revenue
Voya receives for the services it provides to Class R6 shares of a
Portfolio.
Each
Portfolio may not be available as an investment option in your Variable
Contract, through your Qualified Plan, or other investment
company. Please refer to the prospectus for the appropriate insurance company
separate account, investment company, or your plan documents for information on
how to direct investments in, or redemptions from, an investment option
corresponding to a Portfolio and any fees that may apply. Participating
insurance companies and certain other designated organizations are authorized to
receive purchase orders on each Portfolio's behalf.
Each
Portfolio currently does not foresee any disadvantages to investors if it serves
as an investment option for Variable Contracts and if it
offers its shares directly to Qualified Plans and other permitted investors.
However, it is possible that the interests of Variable Contracts owners, plan
participants, and other permitted investors for which a Portfolio serves as an
investment option might, at some time, be in conflict because of differences in
tax treatment or other considerations. The Board directed the Adviser to monitor
events to identify any material conflicts between Variable Contract owners, plan
participants, and other permitted investors and would have to determine what
action, if any, should be taken in the event of such conflict. If such a
conflict occurred, an insurance company participating in a Portfolio might be
required to redeem the investment of one or more of its separate accounts from
the Portfolio or a Qualified Plan, investment company, or other permitted
investor might be required to redeem its investment, which might force the
Portfolio to sell securities at disadvantageous prices. Each Portfolio may
discontinue sales to a Qualified Plan and require plan participants with
existing investments to redeem those investments if the Qualified Plan loses (or
in the opinion of the Adviser, is at risk of losing) its Qualified Plan
status.
Each
Portfolio reserves the right to suspend the offering of shares or to reject any
specific purchase order. Each Portfolio may
suspend redemptions or postpone payments when the NYSE is closed or when trading
is restricted for any reason or under emergency circumstances as determined by
the SEC.
Such availability
is subject to management’s determination of the appropriateness of investment in
Class R6 shares.
Distribution
Plans and Shareholder Service Plans
Each Portfolio
listed in the table below has a distribution and shareholder service plan
(“12b-1 Plan”) in
accordance with Rule 12b-1 under the 1940 Act for Class ADV and Class S2 shares.
These payments are made to the Distributor on an ongoing basis as compensation
for services the Distributor provides and expenses it bears in connection with
the marketing and other fees to support the sale and distribution of Class ADV
and Class S2 shares and for shareholder services provided by securities dealers
(including the Distributor) and other financial intermediaries and plan
administrators that provide administrative services relating to Class ADV and
Class S2 shares and their shareholders, including Variable Contract owners or
Qualified Plan participants with interests in the Portfolios. The annual
distribution and shareholder service fees under the 12b-1 Plan for Class ADV
shares may equal up to 0.50% (0.25% for distribution fees and 0.25% for
shareholder service fees), and the annual distribution and shareholder service
fees under the 12b-1 Plan for Class S2 shares may equal up to 0.40% (0.15% for
distribution fees and 0.25% for shareholder service fees) of a Portfolio’s
average daily net assets attributable to each of its Class ADV and Class S2
shares. The Distributor has contractually agreed to waive 0.05% of the
distribution fee for Class ADV shares of Voya Growth and Income Portfolio
through May 1, 2023.
Each
Portfolio listed in the table below has a distribution/shareholder service plan
(“Distribution/Shareholder
Service Plan”) in accordance with Rule 12b-1 under the 1940 Act for Class S
shares. These payments are made to the Distributor on an ongoing basis as
compensation for services the Distributor provides and expenses it bears in
connection with the marketing and other fees to support the sale and
distribution of Class S shares and for shareholder services provided by
securities dealers (including the Distributor) and other financial
intermediaries and plan administrators that provide administrative services
relating to Class S shares and their shareholders, including Variable Contract
76
HOW TO BUY AND SELL SHARES (continued)
owners or
Qualified Plan participants with interests in the Portfolios. Under the
Distribution/Shareholder Service Plan each Portfolio makes payment at an
annual rate of 0.25% of the Portfolio’s average daily net assets. The
Distributor has contractually agreed to waive 0.10% of the distribution and/or
shareholder service fee for Class S shares of Voya Government Money Market
Portfolio through May 1, 2023.
Voya Global High
Dividend Low Volatility Portfolio has a distribution plan pursuant to Rule 12b-1
(“Distribution Plan”)
in accordance with Rule 12b-1 under the 1940 Act for Class T shares. These
payments are made to the Distributor on an ongoing basis as compensation for
services the Distributor provides and expenses it bears in connection with the
marketing and other fees to support the sale and distribution of Class T shares
of the Portfolio. Under the Distribution Plan, the Portfolio makes payment at an
annual rate of 0.50% of the Portfolio’s average daily net assets attributable to
its Class T shares. The Distributor has agreed to waive 0.15% of the
distribution fee for Class T shares through May 1, 2023.
Voya
Global High Dividend Low Volatility Portfolio has a shareholder service plan
(“Service Plan”) for
its Class T shares. These payments are made to the Distributor in connection
with shareholder services rendered to Portfolio shareholders and the maintenance
of shareholders’ accounts. The Service Plan allows the Company to enter into
shareholder servicing agreements with insurance companies, broker dealers
(including the Adviser) and other financial intermediaries that provide
shareholder and administrative services relating to Class T shares of the
Portfolio and its shareholders, including Variable Contract owners or Qualified
Plan participants with interests in the Portfolio. Under the Service Plan, the
Portfolio makes payment at an annual rate of 0.25% of the Portfolio’s average
daily net assets attributable to its Class T shares.
Because
these distribution and shareholder service fees are paid out of a Portfolio’s
assets on an ongoing basis, over time these
fees will increase the cost of your investment and may cost you more than paying
other types of sales charges.
|
Portfolio |
Class
ADV |
Class
S |
Class
S2 |
Class
T |
|
Voya Balanced
Portfolio |
N/A |
0.25% |
N/A |
N/A |
|
Voya Global High
Dividend Low Volatility Portfolio |
0.50% |
0.25% |
0.40% |
0.75% |
|
Voya Government
Money Market Portfolio |
0.50% |
0.25% |
0.40% |
N/A |
|
Voya Growth
and Income Portfolio |
0.50% |
0.25% |
0.40% |
N/A |
|
Voya Index
Plus LargeCap Portfolio |
0.50% |
0.25% |
0.40% |
N/A |
|
Voya Index
Plus MidCap Portfolio |
N/A |
0.25% |
0.40% |
N/A |
|
Voya Index
Plus SmallCap Portfolio |
N/A |
0.25% |
0.40% |
N/A |
|
Voya Intermediate
Bond Portfolio |
0.50% |
0.25% |
0.40% |
N/A |
|
Voya Small
Company Portfolio |
0.50% |
0.25% |
N/A |
N/A |
77
FREQUENT TRADING - MARKET TIMING
Each
Portfolio is intended for long-term investment and not as a short-term trading
vehicle. Accordingly, organizations or individuals that
use market timing investment strategies and make frequent transfers should not
purchase shares of a Portfolio. Shares of each Portfolio are primarily sold
through omnibus account arrangements with financial intermediaries, as
investment options for Variable Contracts issued by insurance companies and as
investment options for Qualified Plans. Omnibus accounts generally do not
identify customers' trading activity on an individual basis. The Adviser or
affiliated entities have agreements which require such intermediaries to provide
detailed account information, including trading history, upon request of a
Portfolio.
The
Board has made a determination not to adopt a separate policy for each Portfolio
with respect to frequent purchases and redemptions of
shares by a Portfolio’s shareholders, but rather to rely on the financial
intermediaries to monitor frequent, short-term trading within a Portfolio by its
customers. You should review the materials provided to you by your financial
intermediary including, in the case of a Variable Contract, the prospectus that
describes the contract or, in the case of a Qualified Plan, the plan
documentation for its policies regarding frequent, short-term trading. With
trading information received as a result of these agreements, a Portfolio may
make a determination that certain trading activity is harmful to the Portfolio
and its shareholders, even if such activity is not strictly prohibited by the
intermediaries' excessive trading policy. As a result, a shareholder investing
directly or indirectly in a Portfolio may have their trading privileges
suspended without violating the stated excessive trading policy of the
intermediary. Each Portfolio reserves the right, in its sole discretion and
without prior notice, to reject, restrict, or refuse purchase orders whether
directly or by exchange including purchase orders that have been accepted by a
financial intermediary. Each Portfolio seeks assurances from the financial
intermediaries that they have procedures adequate to monitor and address
frequent, short-term trading. There is, however, no guarantee that the
procedures of the financial intermediaries will be able to curtail frequent,
short-term trading activity.
Each
Portfolio believes that market timing or frequent, short-term trading in any
account, including a Variable Contract or Qualified Plan
account, is not in the best interest of the Portfolio or its shareholders. Due
to the disruptive nature of this activity, it can adversely impact the ability
of the Adviser or the Sub-Adviser (if applicable) to invest assets in an
orderly, long-term manner. Frequent trading can disrupt the management of a
Portfolio and raise their expenses through: increased trading and transaction
costs; forced and unplanned portfolio turnover; lost opportunity costs; and
large asset swings that decrease the Portfolio's ability to provide maximum
investment return to all shareholders. This in turn can have an adverse effect
on a Portfolio's performance.
Portfolios
that invest in foreign securities may present greater opportunities for market
timers and thus be at a greater risk for excessive
trading. If an event occurring after the close of a foreign market, but before
the time a Portfolio computes its current NAV, causes a change in the price of
the foreign security and such price is not reflected in its current NAV,
investors may attempt to take advantage of anticipated price movements in
securities held by a Portfolio based on such pricing discrepancies. This is
often referred to as “price arbitrage.” Such price arbitrage opportunities may
also occur in portfolios which do not invest in foreign securities. For example,
if trading in a security held by a Portfolio is halted and does not resume prior
to the time it calculates its NAV such “stale pricing” presents an opportunity
for investors to take advantage of the pricing discrepancy. Similarly,
portfolios that hold thinly-traded securities, such as certain
small-capitalization securities, may be exposed to varying levels of pricing
arbitrage. Each Portfolio has adopted fair valuation policies and procedures
intended to reduce its exposure to price arbitrage, stale pricing and other
potential pricing discrepancies. However, to the extent that a Portfolio does
not immediately reflect these changes in market conditions, short-term trading
may dilute the value of the Portfolio’s shares which negatively affects
long-term shareholders.
The following
transactions are excluded when determining whether trading activity is
excessive:
•
Rebalancing to
facilitate fund-of-fund arrangements or a Portfolio’s systematic exchange
privileges; and
•
Purchases or sales
initiated by certain other funds in the Voya family of funds.
Although
the policies and procedures known to a Portfolio that are followed by the
financial intermediaries that use the Portfolio and
the monitoring by the Portfolio are designed to discourage frequent, short-term
trading, none of these measures can eliminate the possibility that frequent,
short-term trading activity in the Portfolio will occur. Moreover, decisions
about allowing trades in a Portfolio may be required. These decisions are
inherently subjective, and will be made in a manner that is in the best interest
of a Portfolio's shareholders.
78
PAYMENTS TO FINANCIAL INTERMEDIARIES
Voya
mutual funds may be offered as investment options in Variable Contracts issued
by affiliated and non-affiliated insurance companies
and in Qualified Plans. Fees derived from a Portfolio's Distribution and Service
Plans (if applicable) may be paid to insurance companies, broker-dealers, and
companies that service Qualified Plans for selling the Portfolio's shares and/or
for servicing shareholder accounts. Fees derived from a Portfolio’s Service
Plans may be paid to insurance companies, broker-dealers, and companies that
service Qualified Plans for servicing shareholder accounts. Shareholder services
may include, among other things, administrative, record keeping, or other
services that insurance companies or Qualified Plans provide to the clients who
use a Portfolio as an investment option. In addition, the Adviser, Distributor,
or their affiliated entities, out of their own resources and without additional
cost to a Portfolio or its shareholders, may pay additional compensation to
these insurance companies, broker-dealers, or companies that service Qualified
Plans. The Adviser, Distributor, or affiliated entities of a Portfolio may also
share their profits with affiliated insurance companies or other Voya entities
through inter-company payments.
For
non-affiliated insurance companies and Qualified Plans, payments from a
Portfolio's Distribution and/or Service Plans (if
applicable) as well as payments (if applicable) from the Adviser and/or
Distributor generally are based upon an annual percentage of the average net
assets held in a Portfolio by those companies. Payments to financial
intermediaries by the Distributor or its affiliates or by a Portfolio may
provide an incentive for insurance companies or Qualified Plans to make a
Portfolio available through Variable Contracts or Qualified Plans over other
mutual funds or products.
As
of the date of this Prospectus, the Distributor has entered into agreements with
the following non-affiliated insurance companies: C.M.
Life Insurance Company, First Security Benefit Life Insurance and Annuity
Company of New York, Lexington Life Insurance Company, Lincoln Financial Group,
Massachusetts Mutual Life Insurance Company, New York Life Insurance and Annuity
Corporation, Security Benefit Life Insurance Company, Security Equity Life
Insurance Company, Symetra Life Insurance Company, TIAA Life Insurance Company,
Transamerica Life Insurance Company, Transamerica Financial Life Insurance
Company, and Union Securities. Except as discussed in further detail below, the
fees payable under these agreements are for compensation for providing
distribution and/or shareholder services for which the insurance companies are
paid at annual rates that range from 0.00% to 0.50%. This is computed as a
percentage of the average aggregate amount invested in the Portfolio by Variable
Contract holders through the relevant insurance company's Variable
Contracts.
The
insurance companies issuing Variable Contracts or Qualified Plans that use a
Portfolio as an investment option may also pay fees
to third parties in connection with distribution of the Variable Contracts and
for services provided to Variable Contract owners. Entities that service
Qualified Plans may also pay fees to third parties to help service the Qualified
Plans or the accounts of their participants. Neither a Portfolio, the Adviser,
nor the Distributor are parties to these arrangements. Variable Contract owners
should consult the prospectus and statement of additional information for their
Variable Contracts for a discussion of these payments and should consult with
their agent or broker. Qualified Plan participants should consult with their
pension servicing agent.
Ultimately,
the agent or broker selling the Variable Contract to you could have a financial
interest in selling you a particular product
to increase the compensation they receive. Please make sure you read fully each
prospectus and discuss any questions you have with your agent or
broker.
Class
R6
Voya mutual funds
are distributed by the Distributor. The Distributor is a broker-dealer that is
licensed to sell securities. The Distributor generally does not
sell directly to the public but sells and markets its products through financial
intermediaries. Each Voya mutual fund also has an investment adviser which is
responsible for managing the money invested in each of the mutual funds. No
dealer compensation is paid from the sale of Class R6 shares of a Portfolio.
Class R6 shares do not have sales commissions, pay 12b-1 fees, or make payments
to financial intermediaries for assisting the Distributor in promoting the sales
of a Portfolio's shares. In addition, neither a Portfolio nor its affiliates
(including the Adviser and any affiliate of the Adviser) make any type of
administrative, service, or revenue sharing payments in connection with Class R6
shares. Notwithstanding the foregoing, affiliates of Voya, including affiliates
that are intermediaries that sell Class R6 shares of a Portfolio, may benefit
financially from the revenue Voya receives for the services it provides to Class
R6 shares of a Portfolio.
79
DIVIDENDS, DISTRIBUTIONS, AND TAXES
Dividends
and Distributions
Each
Portfolio generally distributes most or all of its net earnings in the form of
dividends, consisting of net investment income and capital
gains distributions. Each Portfolio distributes capital gains, if any, annually.
Each Portfolio (except Voya Global High Dividend Low Volatility Portfolio,
Voya Government Money Market Portfolio, Voya Growth and Income Portfolio, and
Voya Intermediate Bond Portfolio) also declares dividends and pays dividends
consisting of net investment income, if any, annually. Voya Global High Dividend
Low Volatility Portfolio declares dividends and pays dividends consisting of net
investment income, if any, quarterly. Voya Growth and Income Portfolio declares
dividends and pays dividends consisting of net investment income, if any,
semi-annually. Voya Government Money Market Portfolio and Voya Intermediate Bond
Portfolio declare dividends daily and pay dividends consisting of net investment
income, if any, monthly.
All
dividends and capital gains distributions will be automatically reinvested in
additional shares of a Portfolio at the NAV of such shares
on the payment date unless a participating insurance company’s separate account
is permitted to hold cash and elects to receive payment in cash.
From
time to time a portion of a Portfolio’s distributions may constitute a return of
capital. To comply with federal tax regulations, each
Portfolio may also pay an additional capital gains distribution.
Tax
Matters
Holders
of Variable Contracts should refer to the prospectus for their contracts for
information regarding the tax consequences of owning such
contracts and should consult their tax advisers before investing.
Each
Portfolio intends to qualify as a regulated investment company (“RIC”) for federal
income tax purposes by satisfying the requirements under Subchapter M of the
Code, including requirements with respect to diversification of assets,
distribution of income and sources of income. As a RIC, a Portfolio generally
will not be subject to tax on its net investment company taxable income and net
realized capital gains that it distributes to its shareholders.
Each
Portfolio also intends to comply with the diversification requirements of
Section 817(h) of the Code and the underlying
regulations for Variable Contracts so that owners of these contracts should not
be subject to federal tax on distributions of dividends and income from the
Portfolio to the insurance company's separate accounts.
Since
the sole shareholders of each Portfolio will be separate accounts or other
permitted investors, no discussion is included herein
as to the federal income tax consequences at the shareholder level. For
information concerning the federal income tax consequences to purchasers of the
Variable Contracts, see the prospectus for the contract.
See the SAI for
further information about tax matters.
The
tax status of your investment in a Portfolio depends upon the features of your
Variable Contract. For further information, please
refer to the prospectus for the Variable Contract.
80
INDEX DESCRIPTIONS
The
Bloomberg U.S. Aggregate Bond
Index is a widely recognized index of publicly issued, investment-grade U.S.
government, mortgage-backed, asset-backed, and corporate debt
securities.
The
MSCI EAFE® Index measures the
performance of securities listed on exchanges in Europe, Australasia, and the
Far East.
The
MSCI World Value IndexSM captures large and
mid cap securities exhibiting overall value style characteristics across 23
developed markets countries.
The
Russell 2000® Index measures the
performance of the small-cap segment of the U.S. equity universe. The index is a
subset of the Russell 3000® Index representing
approximately 10% of the total market capitalization of that index. It includes
approximately 2,000 of the smallest securities based on a combination of their
market cap and current index membership.
The
Russell 3000® Index measures the
performance of the largest 3,000 U.S. companies representing approximately 98%
of the investable U.S. equity market.
The
S&P 500® Index measures the
performance of the large-cap segment of the U.S. equity universe. It includes
500 leading companies and captures approximately 80% coverage of available
market capitalization.
The S&P MidCap
400® Index measures the
performance of the mid-size company segment of the U.S. market.
The S&P
SmallCap 600® Index measures the
small-cap segment of the U.S. equity market.
The
S&P Target Risk® Growth Index is a
broad-based index that seeks to measure the performance of an asset allocation
strategy targeted to a growth-focused risk profile. The index is fully
investable, with varying levels of exposure to equities and fixed-income through
a family of exchange-traded funds. The index offers increased exposure to
equities, while also using some fixed-income exposure to diversify
risk.
The
S&P 500® Index, S&P
MidCap 400® Index, and S&P
SmallCap 600® Index are products
of S&P Dow Jones Indices LLC (“SPDJI”), and have been licensed for use by
Voya Services Company and certain affiliates (“Voya”). S&P® and S&P
500® are trademarks of
Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered
trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these
trademarks have been licensed for use by SPDJI and sublicensed for certain
purposes by Voya.
Voya’s
investment products (the “Products”) based
in whole or in part on the S&P 500® Index, S&P
MidCap 400® Index, and S&P
SmallCap 600® Index (the
“Indexes”) are not sponsored, endorsed, sold or promoted by SPDJI, S&P, Dow
Jones or any of their respective affiliates (collectively, “S&P Dow Jones
Indices”). S&P Dow Jones Indices makes no representation or warranty,
express or implied, to the owners of the Products or any member of the public
regarding the advisability of investing in the Products or purchasing securities
generally or the ability of the Indexes to track general market performance.
S&P Dow Jones Indices’ only relationship to Voya with respect to the
Products is the licensing of the Indexes and certain trademarks, service marks
and/or trade names of S&P Dow Jones Indices and/or its licensors. The
S&P 500® Index, S&P
MidCap 400® Index, and S&P
SmallCap 600® Index are
determined, composed and calculated by S&P Dow Jones Indices without regard
to Voya or the Products. S&P Dow Jones Indices have no obligation to take
the needs of Voya or the owners of the Products into consideration in
determining, composing or calculating the Indexes. S&P Dow Jones Indices are
not responsible for and have not participated in the determination of the
prices, and amount of the Products or the timing of the issuance or sale of the
Products or in the determination or calculation of the equations by which the
Products are to be converted into cash, surrendered or redeemed, as the case may
be. S&P Dow Jones Indices have no obligation or liability in connection with
the administration or marketing of the Products. There is no assurance that
investment products based on the Indexes will accurately track index performance
or provide positive investment returns. SPDJI is not an investment advisor.
Inclusion of a security within an index is not a recommendation by S&P Dow
Jones Indices to buy, sell, or hold such security, nor is it considered to be
investment advice.
S&P
DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR
THE COMPLETENESS OF THE INDEXES OR
ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO,
ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT
THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR
LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES
INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL
WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS
TO RESULTS TO BE
81
INDEX DESCRIPTIONS (continued)
OBTAINED
BY VOYA, OWNERS OF THE PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF
THE INDEXES OR WITH RESPECT TO
ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT
WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL,
INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO,
LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN
ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT
LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY
AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND VOYA, OTHER
THAN THE LICENSORS OF S&P DOW JONES INDICES.
82
FINANCIAL HIGHLIGHTS
The financial
highlights table is intended to help you understand a Portfolio's financial
performance for the periods shown. Certain information reflects the
financial results for a single share. The total returns in the table represent
the rate of return that an investor would have earned or lost on an investment
in a Portfolio (assuming reinvestment of all dividends and/or distributions).
The information for the fiscal years ended December 31, 2021 and December 31,
2020 has been audited by Ernst & Young LLP, whose report, along with a
Portfolio’s financial statements, is included in a Portfolio’s Annual Report,
which is available upon request. The information for the prior fiscal years or
periods was audited by a different independent public accounting
firm.
Because Class ADV
and Class S2 shares of Voya Government Money Market Portfolio; and Class S2
shares of Voya Index Plus LargeCap Portfolio, Voya Index
Plus MidCap Portfolio, and Voya Index Plus SmallCap Portfolio had not
commenced operations as of the fiscal year ended December 31, 2021, such share
class financial highlights are not presented; however, financial highlights for
other class shares are presented for each Portfolio.
83
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
|
|
|
Income
(loss)
from
investment
operations |
|
Less
distributions |
|
|
|
|
Ratios
to average net assets |
Supplemental
data | |||||||
|
|
Net asset value,
beginning of year or period |
Net investment income
(loss) |
Net realized and
unrealized gain (loss) |
Total from investment
operations |
From net investment
income |
From net realized
gains |
From return of
capital |
Total
distributions |
Payments from
distribution settlement/affiliate |
Net asset value,
end of year or period |
Total
Return(1) |
Expenses before
reductions/additions(2)(3)(4) |
Expenses net of fee
waivers and/or recoupments, if any(2)(3)(4) |
Expenses net of
all reductions/additions(2)(3)(4) |
Net investment
income (loss)(2)(4) |
Net assets, end of
year or period |
Portfolio turnover
rate |
|
Year or Period
ended |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
(%) |
(%) |
(%) |
(%) |
(%) |
($000's) |
(%) |
|
Voya
Balanced Portfolio | |||||||||||||||||
|
Class
I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
16.43 |
0.25•
|
2.31 |
2.56 |
0.29 |
0.27 |
— |
0.56 |
— |
18.43 |
15.92 |
0.74 |
0.69 |
0.69 |
1.42 |
385,538 |
101 |
|
12-31-20 |
15.71 |
0.29 |
1.22 |
1.51 |
0.36 |
0.43 |
— |
0.79 |
— |
16.43 |
10.85 |
0.76 |
0.69 |
0.69 |
1.83 |
370,828 |
96 |
|
12-31-19 |
14.10 |
0.33•
|
2.26 |
2.59 |
0.37 |
0.61 |
— |
0.98 |
— |
15.71 |
19.11 |
0.69 |
0.69 |
0.69 |
2.23 |
371,202 |
113 |
|
12-31-18 |
16.69 |
0.34•
|
(1.37) |
(1.03) |
0.36 |
1.20 |
— |
1.56 |
— |
14.10 |
(6.83) |
0.67 |
0.67 |
0.67 |
2.20 |
347,788 |
184 |
|
12-31-17 |
14.93 |
0.32•
|
1.85 |
2.17 |
0.41 |
— |
— |
0.41 |
— |
16.69 |
14.73 |
0.67 |
0.65 |
0.65 |
2.01 |
425,002 |
174 |
|
Class
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
16.34 |
0.20• |
2.31 |
2.51 |
0.26 |
0.27 |
— |
0.53 |
— |
18.32 |
15.62 |
0.99 |
0.94 |
0.94 |
1.16 |
2,924 |
101 |
|
12-31-20 |
15.62 |
0.23•
|
1.24 |
1.47 |
0.32 |
0.43 |
— |
0.75 |
— |
16.34 |
10.57 |
1.01 |
0.94 |
0.94 |
1.59 |
2,794 |
96 |
|
12-31-19 |
14.02 |
0.29•
|
2.25 |
2.54 |
0.33 |
0.61 |
— |
0.94 |
— |
15.62 |
18.80 |
0.94 |
0.94 |
0.94 |
1.98 |
2,511 |
113 |
|
12-31-18 |
16.59 |
0.30•
|
(1.36) |
(1.06) |
0.31 |
1.20 |
— |
1.51 |
— |
14.02 |
(7.03) |
0.92 |
0.92 |
0.92 |
1.94 |
2,693 |
184 |
|
12-31-17 |
14.85 |
0.28•
|
1.82 |
2.10 |
0.36 |
— |
— |
0.36 |
— |
16.59 |
14.37 |
0.92 |
0.90 |
0.90 |
1.76 |
3,560 |
174 |
|
Voya
Global High Dividend Low Volatility Portfolio | |||||||||||||||||
|
Class
ADV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
10.46 |
0.21•
|
1.89 |
2.10 |
0.24 |
— |
— |
0.24 |
— |
12.32 |
20.23 |
1.16 |
1.10 |
1.10 |
1.85 |
13,886 |
71 |
|
12-31-20 |
10.83 |
0.18 |
(0.35) |
(0.17) |
0.19 |
— |
0.01 |
0.20 |
— |
10.46 |
(1.27) |
1.16 |
1.10 |
1.10 |
1.86 |
13,684 |
72 |
|
12-31-19 |
9.63 |
0.25 |
1.71 |
1.96 |
0.24 |
0.52 |
— |
0.76 |
— |
10.83 |
21.06 |
1.10 |
1.10 |
1.10 |
2.43 |
15,665 |
63 |
|
12-31-18 |
11.02 |
0.23•
|
(1.21) |
(0.98) |
0.40 |
0.01 |
— |
0.41 |
— |
9.63 |
(9.26)(a)
|
1.12 |
1.11 |
1.11 |
2.12 |
15,225 |
147 |
|
12-31-17 |
9.12 |
0.14•
|
1.95 |
2.09 |
0.19 |
— |
— |
0.19 |
— |
11.02 |
23.10 |
1.10 |
1.10 |
1.10 |
1.43 |
19,605 |
60 |
|
Class
I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
10.44 |
0.27• |
1.89 |
2.16 |
0.30 |
— |
— |
0.30 |
— |
12.30 |
20.87 |
0.66 |
0.60 |
0.60 |
2.35 |
144,785 |
71 |
|
12-31-20 |
10.82 |
0.23 |
(0.36) |
(0.13) |
0.24 |
— |
0.01 |
0.25 |
— |
10.44 |
(0.83) |
0.66 |
0.60 |
0.60 |
2.36 |
129,379 |
72 |
|
12-31-19 |
9.62 |
0.30 |
1.71 |
2.01 |
0.29 |
0.52 |
— |
0.81 |
— |
10.82 |
21.68 |
0.60 |
0.60 |
0.60 |
2.92 |
149,439 |
63 |
|
12-31-18 |
11.13 |
0.29•
|
(1.22) |
(0.93) |
0.57 |
0.01 |
— |
0.58 |
— |
9.62 |
(8.85)(a)
|
0.62 |
0.61 |
0.61 |
2.63 |
132,480 |
147 |
|
12-31-17 |
9.21 |
0.20•
|
1.96 |
2.16 |
0.24 |
— |
— |
0.24 |
— |
11.13 |
23.73 |
0.60 |
0.60 |
0.60 |
1.91 |
162,746 |
60 |
|
Class
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
10.49 |
0.24• |
1.90 |
2.14 |
0.27 |
— |
— |
0.27 |
— |
12.36 |
20.56 |
0.91 |
0.85 |
0.85 |
2.10 |
474,598 |
71 |
|
12-31-20 |
10.87 |
0.21 |
(0.37) |
(0.16) |
0.21 |
— |
0.01 |
0.22 |
— |
10.49 |
(1.09) |
0.91 |
0.85 |
0.85 |
2.11 |
465,405 |
72 |
|
12-31-19 |
9.66 |
0.27 |
1.73 |
2.00 |
0.27 |
0.52 |
— |
0.79 |
— |
10.87 |
21.41 |
0.85 |
0.85 |
0.85 |
2.62 |
542,303 |
63 |
|
12-31-18 |
11.12 |
0.26•
|
(1.23) |
(0.97) |
0.48 |
0.01 |
— |
0.49 |
— |
9.66 |
(9.11)(a)
|
0.87 |
0.86 |
0.86 |
2.37 |
375,359 |
147 |
|
12-31-17 |
9.20 |
0.17•
|
1.96 |
2.13 |
0.21 |
— |
— |
0.21 |
— |
11.12 |
23.44 |
0.85 |
0.85 |
0.85 |
1.67 |
480,936 |
60
|
See
Accompanying Notes to Financial Highlights
84
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
|
|
|
Income
(loss)
from
investment
operations |
|
Less
distributions |
|
|
|
|
Ratios
to average net assets |
Supplemental
data | |||||||
|
|
Net asset value,
beginning of year or period |
Net investment income
(loss) |
Net realized and
unrealized gain (loss) |
Total from investment
operations |
From net investment
income |
From net realized
gains |
From return of
capital |
Total
distributions |
Payments from
distribution settlement/affiliate |
Net asset value,
end of year or period |
Total
Return(1) |
Expenses before
reductions/additions(2)(3)(4) |
Expenses net of fee
waivers and/or recoupments, if any(2)(3)(4) |
Expenses net of
all reductions/additions(2)(3)(4) |
Net investment
income (loss)(2)(4) |
Net assets, end of
year or period |
Portfolio turnover
rate |
|
Year or Period
ended |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
(%) |
(%) |
(%) |
(%) |
(%) |
($000's) |
(%) |
|
Class
S2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
10.35 |
0.22• |
1.88 |
2.10 |
0.25 |
— |
— |
0.25 |
— |
12.20 |
20.46 |
1.06 |
1.00 |
1.00 |
1.92 |
265 |
71 |
|
12-31-20 |
10.73 |
0.19 |
(0.36) |
(0.17) |
0.20 |
— |
0.01 |
0.21 |
— |
10.35 |
(1.25) |
1.06 |
1.00 |
1.00 |
1.95 |
354 |
72 |
|
12-31-19 |
9.54 |
0.26•
|
1.70 |
1.96 |
0.25 |
0.52 |
— |
0.77 |
— |
10.73 |
21.26 |
1.00 |
1.00 |
1.00 |
2.59 |
332 |
63 |
|
12-31-18 |
10.95 |
0.23•
|
(1.20) |
(0.97) |
0.43 |
0.01 |
— |
0.44 |
— |
9.54 |
(9.27)(a)
|
1.02 |
1.01 |
1.01 |
2.17 |
273 |
147 |
|
12-31-17 |
9.07 |
0.15•
|
1.94 |
2.09 |
0.21 |
— |
— |
0.21 |
— |
10.95 |
23.29 |
1.00 |
1.00 |
1.00 |
1.46 |
422 |
60 |
|
Class
T |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
10.47 |
0.20• |
1.90 |
2.10 |
0.23 |
— |
— |
0.23 |
— |
12.34 |
20.19 |
1.41 |
1.20 |
1.20 |
1.75 |
2,920 |
71 |
|
12-31-20 |
10.85 |
0.18 |
(0.37) |
(0.19) |
0.18 |
— |
0.01 |
0.19 |
— |
10.47 |
(1.48) |
1.41 |
1.20 |
1.20 |
1.74 |
2,573 |
72 |
|
12-31-19 |
9.59 |
0.26•
|
1.69 |
1.95 |
0.17 |
0.52 |
— |
0.69 |
— |
10.85 |
21.05 |
1.35 |
1.20 |
1.20 |
2.56 |
3,232 |
63 |
|
12-31-18 |
10.96 |
0.22•
|
(1.21) |
(0.99) |
0.37 |
0.01 |
— |
0.38 |
— |
9.59 |
(9.41)(a)
|
1.37 |
1.21 |
1.21 |
2.03 |
31,833 |
147 |
|
12-31-17 |
9.07 |
0.13•
|
1.93 |
2.06 |
0.17 |
— |
— |
0.17 |
— |
10.96 |
22.95 |
1.35 |
1.20 |
1.20 |
1.30 |
39,544 |
60 |
|
Voya
Government Money Market Portfolio | |||||||||||||||||
|
Class
I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
1.00 |
—•
|
0.00* |
0.00* |
— |
0.00* |
— |
0.00* |
— |
1.00 |
0.09 |
0.50 |
0.05 |
0.05 |
0.00 |
485,800 |
— |
|
12-31-20 |
1.00 |
0.00* |
0.00* |
0.00* |
0.00* |
0.00* |
— |
0.00* |
— |
1.00 |
0.29 |
0.51 |
0.17 |
0.17 |
0.20 |
569,945 |
— |
|
12-31-19 |
1.00 |
0.02 |
0.00* |
0.02 |
0.02 |
0.00* |
— |
0.02 |
— |
1.00 |
1.96 |
0.39 |
0.34 |
0.34 |
1.86 |
469,271 |
— |
|
12-31-18 |
1.00 |
0.02 |
0.00* |
0.02 |
0.02 |
0.00* |
— |
0.02 |
— |
1.00 |
1.56 |
0.39 |
0.34 |
0.34 |
1.54 |
463,191 |
— |
|
12-31-17 |
1.00 |
0.01 |
0.00* |
0.01 |
0.01 |
0.00* |
— |
0.01 |
— |
1.00 |
0.61 |
0.39 |
0.34 |
0.34 |
0.58 |
438,591 |
— |
|
Class
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
1.00 |
—• |
0.00* |
0.00* |
— |
0.00* |
— |
0.00* |
— |
1.00 |
0.09 |
0.75 |
0.05 |
0.05 |
0.00 |
57 |
— |
|
12-31-20 |
1.00 |
— |
0.00* |
0.00* |
0.01 |
0.00* |
— |
0.00* |
— |
1.00 |
0.04 |
0.76 |
0.17 |
0.17 |
0.00* |
51 |
— |
|
06-30-18(6)
|
1.00 |
0.01 |
0.00* |
0.01 |
0.01 |
0.00* |
— |
0.01 |
— |
1.00 |
0.57 |
0.64 |
0.49 |
0.49 |
1.14 |
46 |
— |
|
12-31-17 |
1.00 |
0.00* |
0.00* |
0.00* |
0.00* |
0.00* |
— |
0.00* |
— |
1.00 |
0.46 |
0.64 |
0.49 |
0.49 |
0.39 |
44 |
— |
|
Voya
Growth and Income Portfolio | |||||||||||||||||
|
Class
ADV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
29.29 |
0.13•
|
8.14 |
8.27 |
0.19 |
14.87 |
— |
15.06 |
— |
22.50 |
28.41 |
1.16 |
1.06 |
1.06 |
0.39 |
97,015 |
65 |
|
12-31-20 |
27.93 |
0.26 |
4.22 |
4.48 |
0.26 |
2.86 |
— |
3.12 |
— |
29.29 |
16.74 |
1.17 |
1.07 |
1.07 |
0.90 |
903,118 |
92 |
|
12-31-19 |
24.42 |
0.35 |
6.42 |
6.77 |
0.35 |
2.91 |
— |
3.26 |
— |
27.93 |
28.29 |
1.13 |
1.03 |
1.03 |
1.17 |
896,424 |
69 |
|
12-31-18 |
28.94 |
0.37•
|
(1.75) |
(1.38) |
0.39 |
2.75 |
— |
3.14 |
— |
24.42 |
(4.88) |
1.13 |
1.03 |
1.03 |
1.29 |
824,943 |
84 |
|
12-31-17 |
27.51 |
0.36•
|
5.06 |
5.42 |
0.41 |
3.58 |
— |
3.99 |
— |
28.94 |
19.79 |
1.13 |
1.03 |
1.03 |
1.21 |
1,010,017 |
80 |
|
Class
I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
29.90 |
0.29• |
8.33 |
8.62 |
0.35 |
14.87 |
— |
15.22 |
— |
23.30 |
29.00 |
0.66 |
0.61 |
0.61 |
0.85 |
2,137,930 |
65 |
|
12-31-20 |
28.44 |
0.39 |
4.32 |
4.71 |
0.39 |
2.86 |
— |
3.25 |
— |
29.90 |
17.26 |
0.67 |
0.62 |
0.62 |
1.35 |
1,845,796 |
92 |
|
12-31-19 |
24.81 |
0.48 |
6.54 |
7.02 |
0.48 |
2.91 |
— |
3.39 |
— |
28.44 |
28.88 |
0.63 |
0.58 |
0.58 |
1.62 |
1,798,927 |
69 |
|
12-31-18 |
29.37 |
0.51•
|
(1.79) |
(1.28) |
0.53 |
2.75 |
— |
3.28 |
— |
24.81 |
(4.46) |
0.63 |
0.58 |
0.58 |
1.74 |
1,602,432 |
84 |
|
12-31-17 |
27.87 |
0.51•
|
5.13 |
5.64 |
0.56 |
3.58 |
— |
4.14 |
— |
29.37 |
20.34 |
0.63 |
0.58 |
0.58 |
1.66 |
1,906,723 |
80
|
See
Accompanying Notes to Financial Highlights
85
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
|
|
|
Income
(loss)
from
investment
operations |
|
Less
distributions |
|
|
|
|
Ratios
to average net assets |
Supplemental
data | |||||||
|
|
Net asset value,
beginning of year or period |
Net investment income
(loss) |
Net realized and
unrealized gain (loss) |
Total from investment
operations |
From net investment
income |
From net realized
gains |
From return of
capital |
Total
distributions |
Payments from
distribution settlement/affiliate |
Net asset value,
end of year or period |
Total
Return(1) |
Expenses before
reductions/additions(2)(3)(4) |
Expenses net of fee
waivers and/or recoupments, if any(2)(3)(4) |
Expenses net of
all reductions/additions(2)(3)(4) |
Net investment
income (loss)(2)(4) |
Net assets, end of
year or period |
Portfolio turnover
rate |
|
Year or Period
ended |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
(%) |
(%) |
(%) |
(%) |
(%) |
($000's) |
(%) |
|
Class
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
29.32 |
0.20•
|
8.16 |
8.36 |
0.27 |
14.87 |
— |
15.14 |
— |
22.54 |
28.72 |
0.91 |
0.86 |
0.86 |
0.59 |
42,612 |
65 |
|
12-31-20 |
27.96 |
0.32 |
4.22 |
4.54 |
0.32 |
2.86 |
— |
3.18 |
— |
29.32 |
16.93 |
0.92 |
0.87 |
0.87 |
1.10 |
482,532 |
92 |
|
12-31-19 |
24.44 |
0.41 |
6.42 |
6.83 |
0.40 |
2.91 |
— |
3.31 |
— |
27.96 |
28.55 |
0.88 |
0.83 |
0.83 |
1.37 |
479,676 |
69 |
|
12-31-18 |
28.97 |
0.43•
|
(1.76) |
(1.33) |
0.45 |
2.75 |
— |
3.20 |
— |
24.44 |
(4.69) |
0.88 |
0.83 |
0.83 |
1.49 |
451,557 |
84 |
|
12-31-17 |
27.53 |
0.42•
|
5.07 |
5.49 |
0.47 |
3.58 |
— |
4.05 |
— |
28.97 |
20.06 |
0.88 |
0.83 |
0.83 |
1.41 |
556,169 |
80 |
|
Class
S2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
28.88 |
0.15• |
8.03 |
8.18 |
0.22 |
14.87 |
— |
15.09 |
— |
21.97 |
28.52 |
1.06 |
1.01 |
1.01 |
0.46 |
488 |
65 |
|
12-31-20 |
27.59 |
0.25•
|
4.19 |
4.44 |
0.29 |
2.86 |
— |
3.15 |
— |
28.88 |
16.81 |
1.07 |
1.02 |
1.02 |
0.95 |
367 |
92 |
|
12-31-19 |
24.13 |
0.47 |
6.22 |
6.69 |
0.32 |
2.91 |
— |
3.23 |
— |
27.59 |
28.33 |
1.03 |
0.98 |
0.98 |
1.23 |
294 |
69 |
|
12-31-18 |
28.65 |
0.38•
|
(1.73) |
(1.35) |
0.42 |
2.75 |
— |
3.17 |
— |
24.13 |
(4.82) |
1.03 |
0.98 |
0.98 |
1.34 |
407 |
84 |
|
12-31-17 |
27.27 |
0.38•
|
5.01 |
5.39 |
0.43 |
3.58 |
— |
4.01 |
— |
28.65 |
19.89 |
1.03 |
0.98 |
0.98 |
1.27 |
412 |
80 |
|
Voya
Index Plus LargeCap Portfolio | |||||||||||||||||
|
Class
ADV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
29.04 |
0.08•
|
7.82 |
7.90 |
0.21 |
2.14 |
— |
2.35 |
— |
34.59 |
28.62 |
1.07 |
1.05 |
1.05 |
0.26 |
1,564 |
60 |
|
12-31-20 |
28.37 |
0.17•
|
3.30 |
3.47 |
0.28 |
2.52 |
— |
2.80 |
— |
29.04 |
15.37 |
1.08 |
1.05 |
1.05 |
0.67 |
1,188 |
52 |
|
12-31-19 |
24.41 |
0.25 |
6.52 |
6.77 |
0.40 |
2.41 |
— |
2.81 |
— |
28.37 |
29.40 |
1.00 |
1.00 |
1.00 |
0.95 |
1,247 |
45 |
|
08-24-18(5) -
12-31-18 |
28.07 |
0.10•
|
(3.76) |
(3.66) |
0.00* |
— |
— |
0.00* |
— |
24.41 |
(13.04) |
0.99 |
0.99 |
0.99 |
1.08 |
1,016 |
72 |
|
Class
I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
29.43 |
0.24•
|
7.92 |
8.16 |
0.34 |
2.14 |
— |
2.48 |
— |
35.11 |
29.25 |
0.57 |
0.55 |
0.55 |
0.76 |
829,418 |
60 |
|
12-31-20 |
28.77 |
0.30•
|
3.33 |
3.63 |
0.45 |
2.52 |
— |
2.97 |
— |
29.43 |
15.91 |
0.58 |
0.55 |
0.55 |
1.16 |
755,544 |
52 |
|
12-31-19 |
24.64 |
0.39•
|
6.59 |
6.98 |
0.44 |
2.41 |
— |
2.85 |
— |
28.77 |
30.05 |
0.50 |
0.50 |
0.50 |
1.44 |
788,581 |
45 |
|
12-31-18 |
29.11 |
0.41•
|
(2.18) |
(1.77) |
0.43 |
2.27 |
— |
2.70 |
— |
24.64 |
(6.82) |
0.49 |
0.49 |
0.49 |
1.47 |
728,383 |
72 |
|
12-31-17 |
24.19 |
0.42•
|
5.41 |
5.83 |
0.42 |
0.49 |
— |
0.91 |
— |
29.11 |
24.64 |
0.48 |
0.46 |
0.46 |
1.58 |
774,135 |
56 |
|
Class
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
29.13 |
0.16• |
7.84 |
8.00 |
0.27 |
2.14 |
— |
2.41 |
— |
34.72 |
28.94 |
0.82 |
0.80 |
0.80 |
0.51 |
131,883 |
60 |
|
12-31-20 |
28.49 |
0.27 |
3.26 |
3.53 |
0.37 |
2.52 |
— |
2.89 |
— |
29.13 |
15.62 |
0.83 |
0.80 |
0.80 |
0.91 |
123,319 |
52 |
|
12-31-19 |
24.43 |
0.32•
|
6.53 |
6.85 |
0.38 |
2.41 |
— |
2.79 |
— |
28.49 |
29.73 |
0.75 |
0.75 |
0.75 |
1.19 |
126,416 |
45 |
|
12-31-18 |
28.87 |
0.34•
|
(2.16) |
(1.82) |
0.35 |
2.27 |
— |
2.62 |
— |
24.43 |
(7.04) |
0.74 |
0.74 |
0.74 |
1.23 |
119,150 |
72 |
|
12-31-17 |
24.00 |
0.35•
|
5.37 |
5.72 |
0.36 |
0.49 |
— |
0.85 |
— |
28.87 |
24.30 |
0.73 |
0.71 |
0.71 |
1.33 |
100,271 |
56 |
|
Voya
Index Plus MidCap Portfolio | |||||||||||||||||
|
Class
I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
20.75 |
0.20•
|
5.52 |
5.72 |
0.21 |
0.08 |
— |
0.29 |
— |
26.18 |
27.74 |
0.68 |
0.60 |
0.60 |
0.81 |
517,075 |
63 |
|
12-31-20 |
19.50 |
0.20 |
1.30 |
1.50 |
0.25 |
— |
— |
0.25 |
— |
20.75 |
8.25 |
0.74 |
0.60 |
0.60 |
1.03 |
442,016 |
53 |
|
12-31-19 |
17.22 |
0.23•
|
4.18 |
4.41 |
0.26 |
1.87 |
— |
2.13 |
— |
19.50 |
27.08 |
0.55 |
0.55 |
0.55 |
1.26 |
468,981 |
38 |
|
12-31-18 |
22.95 |
0.25•
|
(3.12) |
(2.87) |
0.23 |
2.63 |
— |
2.86 |
— |
17.22 |
(14.34) |
0.55 |
0.55 |
0.55 |
1.18 |
415,219 |
68 |
|
12-31-17 |
21.87 |
0.21•
|
2.62 |
2.83 |
0.30 |
1.45 |
— |
1.75 |
— |
22.95 |
13.58 |
0.53 |
0.51 |
0.51 |
0.96 |
559,342 |
75
|
See
Accompanying Notes to Financial Highlights
86
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
|
|
|
Income
(loss)
from
investment
operations |
|
Less
distributions |
|
|
|
|
Ratios
to average net assets |
Supplemental
data | |||||||
|
|
Net asset value,
beginning of year or period |
Net investment income
(loss) |
Net realized and
unrealized gain (loss) |
Total from investment
operations |
From net investment
income |
From net realized
gains |
From return of
capital |
Total
distributions |
Payments from
distribution settlement/affiliate |
Net asset value,
end of year or period |
Total
Return(1) |
Expenses before
reductions/additions(2)(3)(4) |
Expenses net of fee
waivers and/or recoupments, if any(2)(3)(4) |
Expenses net of
all reductions/additions(2)(3)(4) |
Net investment
income (loss)(2)(4) |
Net assets, end of
year or period |
Portfolio turnover
rate |
|
Year or Period
ended |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
(%) |
(%) |
(%) |
(%) |
(%) |
($000's) |
(%) |
|
Class
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
20.38 |
0.13•
|
5.44 |
5.57 |
0.16 |
0.08 |
— |
0.24 |
— |
25.71 |
27.49 |
0.93 |
0.85 |
0.85 |
0.56 |
70,637 |
63 |
|
12-31-20 |
19.14 |
0.16 |
1.28 |
1.44 |
0.20 |
— |
— |
0.20 |
— |
20.38 |
7.98 |
0.99 |
0.85 |
0.85 |
0.78 |
65,246 |
53 |
|
12-31-19 |
16.93 |
0.18•
|
4.11 |
4.29 |
0.21 |
1.87 |
— |
2.08 |
— |
19.14 |
26.74 |
0.80 |
0.80 |
0.80 |
1.01 |
70,770 |
38 |
|
12-31-18 |
22.59 |
0.19•
|
(3.05) |
(2.86) |
0.17 |
2.63 |
— |
2.80 |
— |
16.93 |
(14.52) |
0.80 |
0.80 |
0.80 |
0.93 |
65,547 |
68 |
|
12-31-17 |
21.55 |
0.15•
|
2.58 |
2.73 |
0.24 |
1.45 |
— |
1.69 |
— |
22.59 |
13.29 |
0.78 |
0.76 |
0.76 |
0.71 |
88,547 |
75 |
|
Voya
Index Plus SmallCap Portfolio | |||||||||||||||||
|
Class
I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
21.39 |
0.23•
|
5.84 |
6.07 |
0.18 |
— |
— |
0.18 |
— |
27.28 |
28.45 |
0.69 |
0.60 |
0.60 |
0.91 |
227,944 |
63 |
|
12-31-20 |
20.91 |
0.17•
|
0.74 |
0.91 |
0.21 |
0.22 |
— |
0.43 |
— |
21.39 |
5.38 |
0.73 |
0.60 |
0.60 |
0.97 |
188,149 |
54 |
|
12-31-19 |
20.36 |
0.21 |
3.86 |
4.07 |
0.23 |
3.29 |
— |
3.52 |
— |
20.91 |
21.81 |
0.57 |
0.57 |
0.57 |
0.98 |
199,122 |
43 |
|
12-31-18 |
26.78 |
0.22•
|
(2.95) |
(2.73) |
0.24 |
3.45 |
— |
3.69 |
— |
20.36 |
(12.40)(b)
|
0.55 |
0.55 |
0.55 |
0.86(c)
|
185,212 |
67 |
|
12-31-17 |
26.91 |
0.22•
|
2.25 |
2.47 |
0.25 |
2.35 |
— |
2.60 |
— |
26.78 |
9.91 |
0.54 |
0.52 |
0.52 |
0.83 |
231,351 |
65 |
|
Class
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
21.11 |
0.16• |
5.77 |
5.93 |
0.13 |
— |
— |
0.13 |
— |
26.91 |
28.13 |
0.94 |
0.85 |
0.85 |
0.65 |
51,234 |
63 |
|
12-31-20 |
20.62 |
0.14 |
0.72 |
0.86 |
0.15 |
0.22 |
— |
0.37 |
— |
21.11 |
5.11 |
0.98 |
0.85 |
0.85 |
0.71 |
47,970 |
54 |
|
12-31-19 |
20.10 |
0.16 |
3.82 |
3.98 |
0.17 |
3.29 |
— |
3.46 |
— |
20.62 |
21.55 |
0.82 |
0.82 |
0.82 |
0.73 |
52,956 |
43 |
|
12-31-18 |
26.47 |
0.15•
|
(2.91) |
(2.76) |
0.16 |
3.45 |
— |
3.61 |
— |
20.10 |
(12.62)(b)
|
0.80 |
0.80 |
0.80 |
0.61(c)
|
50,198 |
67 |
|
12-31-17 |
26.63 |
0.15•
|
2.22 |
2.37 |
0.18 |
2.35 |
— |
2.53 |
— |
26.47 |
9.60 |
0.79 |
0.77 |
0.77 |
0.58 |
65,645 |
65 |
|
Voya
Intermediate Bond Portfolio | |||||||||||||||||
|
Class
ADV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
13.19 |
0.26•
|
(0.44) |
(0.18) |
0.25 |
0.00* |
0.08 |
0.33 |
— |
12.68 |
(1.42) |
1.07 |
1.03 |
1.03 |
2.01 |
284,547 |
139 |
|
12-31-20 |
12.94 |
0.32 |
0.61 |
0.93 |
0.38 |
0.30 |
— |
0.68 |
— |
13.19 |
7.32 |
1.08 |
1.03 |
1.03 |
2.40 |
312,654 |
99 |
|
12-31-19 |
12.20 |
0.37 |
0.76 |
1.13 |
0.37 |
0.02 |
— |
0.39 |
— |
12.94 |
9.29 |
1.03 |
1.03 |
1.03 |
2.88 |
291,207 |
149 |
|
12-31-18 |
12.73 |
0.36 |
(0.50) |
(0.14) |
0.39 |
— |
— |
0.39 |
— |
12.20 |
(1.08) |
1.03 |
1.03 |
1.03 |
2.95 |
265,204 |
193 |
|
12-31-17 |
12.53 |
0.34 |
0.22 |
0.56 |
0.36 |
— |
— |
0.36 |
— |
12.73 |
4.53 |
1.03 |
1.02 |
1.02 |
2.67 |
311,323 |
300 |
|
Class
I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
13.33 |
0.33•
|
(0.45) |
(0.12) |
0.31 |
0.00* |
0.08 |
0.39 |
— |
12.82 |
(0.88) |
0.57 |
0.53 |
0.53 |
2.51 |
976,144 |
139 |
|
12-31-20 |
13.08 |
0.39 |
0.61 |
1.00 |
0.45 |
0.30 |
— |
0.75 |
— |
13.33 |
7.81 |
0.58 |
0.53 |
0.53 |
2.89 |
1,108,593 |
99 |
|
12-31-19 |
12.33 |
0.44 |
0.77 |
1.21 |
0.44 |
0.02 |
— |
0.46 |
— |
13.08 |
9.85 |
0.53 |
0.53 |
0.53 |
3.38 |
1,023,645 |
149 |
|
12-31-18 |
12.86 |
0.43 |
(0.50) |
(0.07) |
0.46 |
— |
— |
0.46 |
— |
12.33 |
(0.54) |
0.53 |
0.53 |
0.53 |
3.45 |
986,608 |
193 |
|
12-31-17 |
12.66 |
0.41 |
0.22 |
0.63 |
0.43 |
— |
— |
0.43 |
— |
12.86 |
5.04 |
0.53 |
0.52 |
0.52 |
3.17 |
1,117,794 |
300
|
See
Accompanying Notes to Financial Highlights
87
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
|
|
|
Income
(loss)
from
investment
operations |
|
Less
distributions |
|
|
|
|
Ratios
to average net assets |
Supplemental
data | |||||||
|
|
Net asset value,
beginning of year or period |
Net investment income
(loss) |
Net realized and
unrealized gain (loss) |
Total from investment
operations |
From net investment
income |
From net realized
gains |
From return of
capital |
Total
distributions |
Payments from
distribution settlement/affiliate |
Net asset value,
end of year or period |
Total
Return(1) |
Expenses before
reductions/additions(2)(3)(4) |
Expenses net of fee
waivers and/or recoupments, if any(2)(3)(4) |
Expenses net of
all reductions/additions(2)(3)(4) |
Net investment
income (loss)(2)(4) |
Net assets, end of
year or period |
Portfolio turnover
rate |
|
Year or Period
ended |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
(%) |
(%) |
(%) |
(%) |
(%) |
($000's) |
(%) |
|
Class
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
13.24 |
0.29•
|
(0.43) |
(0.14) |
0.28 |
0.00* |
0.08 |
0.36 |
— |
12.74 |
(1.07) |
0.82 |
0.78 |
0.78 |
2.26 |
1,956,289 |
139 |
|
12-31-20 |
12.99 |
0.35 |
0.62 |
0.97 |
0.42 |
0.30 |
— |
0.72 |
— |
13.24 |
7.57 |
0.83 |
0.78 |
0.78 |
2.65 |
2,139,406 |
99 |
|
12-31-19 |
12.25 |
0.40 |
0.76 |
1.16 |
0.40 |
0.02 |
— |
0.42 |
— |
12.99 |
9.54 |
0.78 |
0.78 |
0.78 |
3.13 |
2,198,827 |
149 |
|
12-31-18 |
12.78 |
0.40 |
(0.51) |
(0.11) |
0.42 |
— |
— |
0.42 |
— |
12.25 |
(0.82) |
0.78 |
0.78 |
0.78 |
3.20 |
2,255,122 |
193 |
|
12-31-17 |
12.58 |
0.37 |
0.23 |
0.60 |
0.40 |
— |
— |
0.40 |
— |
12.78 |
4.79 |
0.78 |
0.77 |
0.77 |
2.92 |
2,587,503 |
300 |
|
Class
S2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
13.19 |
0.27• |
(0.43) |
(0.16) |
0.26 |
0.00* |
0.08 |
0.34 |
— |
12.69 |
(1.24) |
0.97 |
0.93 |
0.93 |
2.11 |
15,571 |
139 |
|
12-31-20 |
12.94 |
0.33 |
0.62 |
0.95 |
0.40 |
0.30 |
— |
0.70 |
— |
13.19 |
7.42 |
0.98 |
0.93 |
0.93 |
2.50 |
21,316 |
99 |
|
12-31-19 |
12.20 |
0.38 |
0.76 |
1.14 |
0.38 |
0.02 |
— |
0.40 |
— |
12.94 |
9.40 |
0.93 |
0.93 |
0.93 |
2.99 |
21,401 |
149 |
|
12-31-18 |
12.73 |
0.38 |
(0.51) |
(0.13) |
0.40 |
— |
— |
0.40 |
— |
12.20 |
(0.98) |
0.93 |
0.93 |
0.93 |
3.05 |
22,040 |
193 |
|
12-31-17 |
12.53 |
0.35 |
0.22 |
0.57 |
0.37 |
— |
— |
0.37 |
— |
12.73 |
4.63 |
0.93 |
0.92 |
0.92 |
2.77 |
25,649 |
300 |
|
Voya
Small Company Portfolio | |||||||||||||||||
|
Class
ADV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
17.36 |
(0.10)•
|
2.56 |
2.46 |
— |
0.08 |
— |
0.08 |
— |
19.74 |
14.19 |
1.49 |
1.40 |
1.40 |
(0.52) |
8,826 |
129 |
|
12-31-20 |
15.91 |
(0.04) |
1.77 |
1.73 |
0.01 |
0.27 |
— |
0.28 |
— |
17.36 |
11.73 |
1.52 |
1.40 |
1.40 |
(0.31) |
6,851 |
134 |
|
12-31-19 |
14.86 |
(0.01) |
3.55 |
3.54 |
0.00* |
2.49 |
— |
2.49 |
— |
15.91 |
25.56 |
1.39 |
1.39 |
1.39 |
(0.06) |
7,227 |
125 |
|
12-31-18 |
20.95 |
(0.04) |
(2.76) |
(2.80) |
0.02 |
3.27 |
— |
3.29 |
— |
14.86 |
(16.22) |
1.39 |
1.39 |
1.39 |
(0.18) |
6,342 |
96 |
|
12-31-17 |
21.20 |
(0.01) |
2.12 |
2.11 |
— |
2.36 |
— |
2.36 |
— |
20.95 |
10.69 |
1.38 |
1.37 |
1.37 |
(0.01) |
7,817 |
74 |
|
Class
I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
18.59 |
(0.01)• |
2.75 |
2.74 |
0.03 |
0.08 |
— |
0.11 |
— |
21.22 |
14.76 |
0.99 |
0.90 |
0.90 |
(0.03) |
344,506 |
129 |
|
12-31-20 |
17.04 |
0.05 |
1.86 |
1.91 |
0.09 |
0.27 |
— |
0.36 |
— |
18.59 |
12.28 |
1.02 |
0.90 |
0.90 |
0.19 |
347,004 |
134 |
|
12-31-19 |
15.75 |
0.07•
|
3.78 |
3.85 |
0.07 |
2.49 |
— |
2.56 |
— |
17.04 |
26.21 |
0.89 |
0.89 |
0.89 |
0.44 |
427,877 |
125 |
|
12-31-18 |
22.01 |
0.06•
|
(2.94) |
(2.88) |
0.11 |
3.27 |
— |
3.38 |
— |
15.75 |
(15.84) |
0.89 |
0.89 |
0.89 |
0.31 |
435,019 |
96 |
|
12-31-17 |
22.12 |
0.10 |
2.23 |
2.33 |
0.08 |
2.36 |
— |
2.44 |
— |
22.01 |
11.29 |
0.88 |
0.87 |
0.87 |
0.49 |
607,230 |
74 |
|
Class
R6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
18.60 |
(0.00)*•
|
2.74 |
2.74 |
0.03 |
0.08 |
— |
0.11 |
— |
21.23 |
14.77 |
0.87 |
0.87 |
0.87 |
(0.00)* |
14,790 |
129 |
|
12-31-20 |
17.04 |
0.03 |
1.89 |
1.92 |
0.09 |
0.27 |
— |
0.36 |
— |
18.60 |
12.34 |
0.89 |
0.89 |
0.89 |
0.25 |
11,466 |
134 |
|
12-31-19 |
15.75 |
0.09 |
3.76 |
3.85 |
0.07 |
2.49 |
— |
2.56 |
— |
17.04 |
26.20 |
0.89 |
0.89 |
0.89 |
0.44 |
5,665 |
125 |
|
12-31-18 |
22.01 |
0.06 |
(2.94) |
(2.88) |
0.11 |
3.27 |
— |
3.38 |
— |
15.75 |
(15.85) |
0.89 |
0.89 |
0.89 |
0.33 |
6,115 |
96 |
|
12-31-17 |
22.13 |
0.11•
|
2.21 |
2.32 |
0.08 |
2.36 |
— |
2.44 |
— |
22.01 |
11.23 |
0.88 |
0.87 |
0.87 |
0.53 |
6,274 |
74 |
|
Class
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12-31-21 |
17.99 |
(0.06)• |
2.66 |
2.60 |
— |
0.08 |
— |
0.08 |
— |
20.51 |
14.47 |
1.24 |
1.15 |
1.15 |
(0.28) |
80,449 |
129 |
|
12-31-20 |
16.48 |
(0.00)* |
1.83 |
1.83 |
0.05 |
0.27 |
— |
0.32 |
— |
17.99 |
12.04 |
1.27 |
1.15 |
1.15 |
(0.06) |
80,512 |
134 |
|
12-31-19 |
15.30 |
0.03 |
3.66 |
3.69 |
0.02 |
2.49 |
— |
2.51 |
— |
16.48 |
25.86 |
1.14 |
1.14 |
1.14 |
0.20 |
86,035 |
125 |
|
12-31-18 |
21.46 |
0.02 |
(2.86) |
(2.84) |
0.05 |
3.27 |
— |
3.32 |
— |
15.30 |
(16.05) |
1.14 |
1.14 |
1.14 |
0.06 |
80,225 |
96 |
|
12-31-17 |
21.63 |
0.05•
|
2.17 |
2.22 |
0.03 |
2.36 |
— |
2.39 |
— |
21.46 |
11.00 |
1.13 |
1.12 |
1.12 |
0.22 |
111,723 |
74 |
See
Accompanying Notes to Financial Highlights
88
ACCOMPANYING NOTES TO FINANCIAL HIGHLIGHTS
(1)
Total return is
calculated assuming reinvestment of all dividends, capital gain distributions,
and return of capital distributions, if any, at net asset value and does not
reflect the effect of insurance contract charges. Total return for periods less
than one year is not annualized.
(2)
Annualized for
periods less than one year.
(3)
Ratios do not
include fees and expenses charged under the variable annuity contract or
variable life insurance policy.
(4)
Ratios reflect
operating expenses of a Portfolio. Expenses before reductions/additions do not
reflect amounts reimbursed or recouped by the Investment Adviser and/or
Distributor or reductions from brokerage service arrangements or other expense
offset arrangements and do not represent the amount paid by a Portfolio during
periods when reimbursements or reductions occur. Expenses net of fee waivers
reflect expenses after reimbursement by the Investment Adviser and/or
Distributor or recoupment of previously reimbursed fees by the Investment
Adviser, but prior to reductions from brokerage service arrangements or other
expense offset arrangements. Expenses net of all reductions/additions represent
the net expenses paid by a Portfolio. Net investment income (loss) is net of all
such additions or reductions.
(5)
Commencement of
operations.
(6)
Unaudited. There
were no shares outstanding as of December 31, 2018 and December 31,
2019.
(a)
Excluding amounts
related to a transition cost reimbursement recorded in the year ended December
31, 2018, Voya Global High Dividend Low Volatility Portfolio’s total
return would have been (9.37)%, (8.96)%, (9.22)%, (9.38)% and (9.52)% for
Classes ADV, I, S, S2 and T, respectively.
(b)
Excluding amounts
related to a securities lending settlement recorded in the year ended December
31, 2018, Voya Index Plus SmallCap Portfolio’s total returns would have
been (12.44)% and (12.66)% for Classes I and S, respectively.
(c)
Excluding amounts
related to a securities lending settlement recorded in the year ended December
31, 2018, Voya Index Plus SmallCap Portfolio’s Net Investment Income Ratios
would have been 0.82% and 0.57% for Classes I and S,
respectively.
*
Amount is less than
$0.005 or 0.005% or more than $(0.005) or (0.005)%.
•
Calculated using
average number of shares outstanding throughout the year or
period.
89
TO
OBTAIN MORE INFORMATION
You will find more
information about the Portfolios in our:
ANNUAL/SEMI-ANNUAL
SHAREHOLDER REPORTS
In
the Portfolios' annual shareholder
reports, you will find a discussion of the recent market conditions and
principal investment strategies that significantly affected the Portfolios'
performance during the applicable reporting period, the financial statements and
the independent registered public accounting firm's reports.
STATEMENT
OF ADDITIONAL INFORMATION
The
SAI contains more detailed information about the Portfolios. The SAI is legally
part of this Prospectus (it is incorporated by reference). A
copy has been filed with the SEC.
Please
write, call or visit our website for a free copy of the current
annual/semi-annual shareholder reports, the SAI, or other Portfolio
information.
To make shareholder
inquiries contact:
Voya
Investment Management
7337 East
Doubletree Ranch Road, Suite 100
Scottsdale, AZ 85258-2034
Scottsdale, AZ 85258-2034
1-800-992-0180
or visit our
website at www.voyainvestments.com
Copies of this
information may also be obtained for a duplicating fee, by contacting the SEC
at: [email protected].
Or obtain the
information at no cost by visiting the EDGAR Database on the SEC's Internet
website at: www.sec.gov.
When contacting the
SEC, you will want to refer to the Portfolios' SEC file numbers. The file
numbers are as follows:
|
Voya Balanced
Portfolio, Inc. |
811-5773 |
|
Voya Balanced
Portfolio |
|
|
Voya Intermediate
Bond Portfolio |
811-2361 |
|
Voya Intermediate
Bond Portfolio | |
|
Voya Government
Money Market Portfolio |
811-2565 |
|
Voya Government
Money Market Portfolio |
|
|
Voya Variable
Funds |
811-2514 |
|
Voya Growth
and Income Portfolio | |
|
Voya Variable
Portfolios, Inc. |
811-7651 |
|
Voya Global High
Dividend Low Volatility Portfolio
Voya Index
Plus LargeCap Portfolio
Voya Index
Plus MidCap Portfolio
Voya Index
Plus SmallCap Portfolio
Voya Small
Company Portfolio | |
PRO-2514(0522-050122)
