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 |
|
|
|
|
|
|