voya large cap growth strategy (formerly ing large-cap growth strategy)
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Quarter ending March 31, 2014. Voya Large Cap Growth Strategy (Formerly ING Large-Cap Growth Strategy). Client Name Presented by Name, Title Date. Table of Contents. Firm Profile Voya Fundamental Equity Platform Voya Large Cap Growth Strategy - PowerPoint PPT PresentationTRANSCRIPT
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Voya Large Cap Growth Strategy
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Voya Large Cap Growth StrategyQuarter ending September 30, 2015
Client Name
Presented by
Name, Title
Date
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Voya Large Cap Growth Strategy
Table of Contents1. Firm Profile
2. Voya Fundamental Equity Platform
3. Voya Large Cap Growth Strategy
4. Portfolio Characteristics and Performance
5. Appendix
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Voya Large Cap Growth Strategy
1. Firm Profile
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Voya Large Cap Growth Strategy
Ranked #5 for Total Recordkeeping assets and #3 by number of Defined Contribution plan sponsors and participants respectively1
Top 20 manager of U.S. Institutional tax-exempt and Defined Contribution assets2
Top 20 provider of Voluntary Benefits3, Group Life3 and Stop Loss Insurance4
Voya Financial is traded on NYSE (Ticker: VOYA)
Financial Strength Ratings of A/A/A2 with a positive outlook5
Market Capitalization of $8.8 billion6
6,500 employees
Voya Financial®
Investment Management Insurance SolutionsRetirement Solutions
1 PLANSPONSOR Magazine, 2014 Defined contribution Recordkeeping Survey as of December 31, 2014.
² Pensions & Investments Magazine The Largest Money Managers as of December 31, 2014.
³ LIMRA 3Q2013 Final Premium Reporting.4 MyHealthGuide newsletter rankings as of June 3, 2013; based on premiums from 2012; does not include most managed healthcare providers.5 S&P FSR of A, Stable Outlook as of February 2015; Fitch Ratings FSR of A, Outlook Positive as of March 2015; Moody’s FSR of A2, Outlook Stable as of March 2015 Claims
Paying and Financial Strength Ratings for Voya Financial, Inc., Insurance Companies.6 As of September 30, 2015.
SICAV presentations
Market Cap:http://finance.yahoo.comq?s-voyaOr financial factsheet which can be found at:https://professionals.voya.com/stellent/public/VOYA_FINANCIAL_FACT_SHEET.pdf
# of employees is included on fact sheet and per Darin Arita # of employees is only updated at year end
# of employees can be found on sharenethttp://us.iam.intranet/idc/groups/products/documents/products/070470.pptx
Financial Strength is found at:
http://investors.voya.com/financial-reporting/credit-ratings/default.aspx
Voya Overview
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Voya Large Cap Growth Strategy
Voya Investment Management Overview
Bullet 2 – updated annually
Bullet 3 from RFP team in channel breakdown tab
Bullet 4 – from RFP team in Total DC AUM tab
Bullet 5 – from RFP team in channel breakdown tab
A Reliable Partner Committed to Reliable Investing®
Active, research-driven investment solutions across asset classes and investment styles
Investment mission:
► Find unrecognized value ahead of consensus through active management
► Based on original insights on markets and companies, and
► A vision of investment potential that differs from the consensus view
40 years of history in asset management
Top 20 manager of U.S. institutional tax-exempt and Defined Contribution assets(1)
$213 billion in assets under management with $128 billion managed for external clients(2)
$37 billion in Defined Contribution plan assets under management(3)
Over 900 employees and 200 investment professionals
Bullet 2 – updated annually
Bullet 3 from RFP team in channel breakdown tab
Bullet 4 – from RFP team in Total DC AUM tab
Bullet 5 – from RFP team in channel breakdown tab
40 years of history in asset management
Top 20 manager of U.S. institutional tax-exempt and Defined Contribution assets1
$210 billion in assets under management with $122 billion managed for external clients²
$35 billion in Defined Contribution plan assets under management³
Over 900 employees and 200 investment professionals
1 Pensions & Investments Magazine , The Largest Money Managers as of December 31, 2014.
² Data is as of September 30, 2015. Voya IM assets of $210 billion include proprietary insurance general account assets of $88 billion calculated on a market value basis. Voya IM assets, as reported in Voya Financial, Inc. SEC filings, include general account assets valued on a statutory book value basis and total approximately $202 billion.
³ The $35 billion in DC assets excludes approximately $29.2 billion in assets under administration as of September 30, 2015.
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Voya Large Cap Growth Strategy
Voya IM1
$210 Billion
Fixed Income2 Senior Loans3 Equity Multi-Asset Strategies4
$127 Billion $20 Billion $44 Billion $27 Billion
Atlanta, GA Scottsdale, AZ New York, NY New York, NY
Short and Intermediate Duration Senior Loans Large Cap Value Target Date
Stable Value Collateralized Loan Obligations (CLO) Large Cap Growth Custom Target Date
Investment Grade Credit Mid Cap Growth Portable Alpha
MBS/CMBS/ABS SMID Cap Growth Retirement Income
Core and Core Plus Small Cap Growth
Private Credit Small Cap Core
Commercial Mortgage Loans
High Yield Sub-Advised Real Estate*
Emerging Market Debt U.S./International/Global Real Estate
Unconstrained Fixed Income
Global Bond
Long Duration Credit
Mortgage Derivatives
Focus Strategies
Data as of September 30, 2015(1) Voya IM assets of $210 billion include proprietary insurance general account assets of $88 billion calculated on a market value basis. Voya IM assets, as reported in Voya
Financial, Inc. SEC filings, include general account assets valued on a statutory book value basis and total approximately $202 billion. Both totals include approximately $7 billion in Private Equity, $6 billion in Real Estate and $5 billion in other assets including those sub-advised through the Voya family of funds and the Multi-Asset Strategies and Solutions product offerings. Approximately $0.6 billion of total fixed income assets are also included in the Senior Loan and Private Equity totals.
(2) Total Fixed Income assets include proprietary insurance general account assets totaling $88 billion on a market value basis. General account assets, as reported in Voya Financial, Inc. SEC filings, are valued on a statutory book value basis of approximately $80 billion. Approximately $0.6 billion of total fixed income assets are also included in the Senior Loan and Private Equity totals.
(3) Voya Senior Loan assets include investments in Class P shares totaling approximately $31 million, which are also reflected in the fixed income total, but not double-counted in the firm AUM total.
(4) The Multi-Asset Strategies assets under management are included in other categories or managed by external entities and are therefore not included in the $210 billion firm total.
* Real Estate capabilites are managed through a sub-advised agreement with CBRE Clarion Securities, a former Voya IM affiliate.
Voya Investment Management Overview
All data from RFP
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Voya Large Cap Growth Strategy
Voya Investment Management
M:\Marketing\Graphic Design\Voya\Resources\ART FILES\Brand Messaging
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Voya Large Cap Growth Strategy
Follow Us on Twitter
Delivering regular updates on economic releases, capital markets and industry trends
@VoyaInvestments is the fastest way to access the insights of our investment professionals
@VoyaInvestments
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Voya Large Cap Growth Strategy
2. Voya Fundamental Equity Platform
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Voya Large Cap Growth Strategy
INST Intro EPLV pres
SMA LCGR pres
INST SMID C G pres
INST SCC and G pres
INST RA pres
INST Mid-Cap G pres
INST LCV pres
INST LCGSP500 pres
INST LCGR pres
INST Intro to EPSV press
INST Intro to PLV pres
INST IV pres
INST GNR pres
Bus Dev SCE pres
Bus Dev MidCap Opppres
Bus Dev LCG R pres
Bus Dev LCV pres
Bus Dev Intro to EP S v pres
Bus Dev SCE pres
Bus Dev MidCap Opppres
Bus Dev LCG R pres
Bus Dev LCV pres
Bus Dev Intro to EP S v pres
BD Growth Opps pres
SCC and SCG
We believe our research-centric investment process generates an information advantage:
Stock selection is driven by a team of very experienced investment specialists, whose mandate is to generate the highest alpha ideas by identifying outliers in their respective sectors
Deep industry expertise combined with sector-specific research methodologies lead to uncorrelated sources of alpha
Portfolios built with active risk substantially focused on stock picking deliver a superior performance profile
Fundamental Equity Platform — Philosophy
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Voya Large Cap Growth Strategy
Competitive Investment Performance
Top quartileSecond quartile
Third quartileBottom quartile
Information Ratio and eVestment Rankings
As of 09/30/15
Strategy
Annualized Excess
Returns (%)
Ex-post Tracking Error (%)
Information Ratio
Information Ratio
Rankings*Downside Capture
Upside Capture
Team Inception
DateNumber of Years
eVestment Rankings* Benchmark
Value
Voya Large Cap Value (R1V) 2.95 3.29 0.90 2 87.43 97.30 01/01/08 7.8 11 Russell 1000 Value Index
Voya Large Cap Value (SP5) 0.94 2.67 0.35 35 99.59 104.10 11/01/04 10.9 45 S&P 500 Total Return Index
Growth
Voya Large Cap Growth (R1G) 1.57 3.40 0.46 8 96.78 104.38 05/01/04 11.4 17 Russell 1000 Growth Index
Voya Large Cap Growth (SP5) 1.75 3.76 0.47 13 95.77 104.18 05/01/04 11.4 29 S&P 500 Total Return Index
Voya Mid Cap Growth 2.63 3.89 0.67 1 92.18 102.02 08/01/05 10.2 9 Russell Midcap Growth Index
Small Cap
Voya SMID Cap Growth (0.82) 3.16 (0.26) 55 77.48 82.75 06/01/12 3.3 50 Russell 2500 Growth Index
Voya Small Cap Growth 2.46 3.44 0.71 4 87.44 93.41 08/01/05 10.2 15 Russell 2000 Growth Index
Voya Small Cap Core 2.46 2.98 0.83 5 86.90 92.93 08/01/05 10.2 24 Russell 2000 Index
Source: eVestment Alliance and Voya Investment Management
* eVestment rankings are as of September 30, 2015
To learn more on the GIPS® compliance Schedule of Composite Performance go to: http://www.voyainvestments.com/US/ProductsandServices/Institutional/index.htm.
Since Inception of Current Team
Excess returns, returns-based statistics, and competitive rankings are based on “composites”, calculated as an asset-w eighted average return of similarly-managed individual portfolios. Returns are presented before the deduction of management fees and w ill be reduced by advisory fees and other fees incurred in the management of the portfolio. For a description of advisory fees, please see Form ADV, Part II. Past performance does not guarantee future results. For additional performance information, please refer to the fully-compliant presentation, w hich must accompany or precede this material.Excess Return is calculated as the difference betw een the performance returns of the investment strategy composite and the respective benchmark return over the measurement period presented, and is annualized for periods greater than 1 year. Tracking Error is defined as the annualized Standard Deviation of the Excess Return over the measurement period presented. Information Ratio is defined as the Excess Return divided by Tracking Error over the measurement period presented. Capture ratios are based on the percentage of time that the strategy outperformed the benchmark index w hen the quarterly returns of the index w ere either positive (Upside) or negative (Dow nside) over the measurement period presented.The color-coded columns of data above are highlighted according to the key provided and indicate the quartile ranking w ithin the relevant eVestment Alliance manager categories using gross-of-fees returns and Information Ratios.
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Voya Large Cap Growth Strategy
SMA LCGR pres
INST SMID C G pres
NST SCC and G pres
INST RA pres
INST Mid-Cap G pres
INST LCV pres
INST LCGSP500 pres
INST LCGR pres
INST Intro to equity platform long press
INST Intro to equity platform short pres
INST IV press
Bus Dev SCE pres
Bus Dev MidCap Opp pres
Bus Dev LCG R pres
Bus Dev LCV pres
Bus Dev Intro to EP S v pres
Bus Dev SCE pres
Bus Dev MidCap Opp pres
Bus Dev LCG R pres
Bus Dev LCV pres
Bus Dev Intro to EP S v pres
Bus Dev Growth Opps pres
Five Teams With:
A common investment philosophy focused on stock selection
A distinct knowledge base, skill set and product mandate
A culture and history of sharing knowledge and ideas
Equity Platform Capabilities and Strategies
Fundamental Equity Team
Growth ValueTotal AUM $15 Billion Total AUM $7 Billion■ Large Cap Growth (R1G) ) ■ Large Cap Value (R1V)■ Large Cap Growth (SP5) ■ Large Cap Value (SP5)■ Mid Cap Growth ■ Mid Cap Value
Small Cap International Value
Total AUM $4 Billion Total AUM $1 Billion■ Small Cap Growth ■ Global Value Advantage■ Small Cap Core ■ Global Infrastructure (IDE)■ SMID Growth
Portfolio EngineeringTotal AUM $17 Billion
■ Research Enhanced Index ► Alpha signal research
■ Rules Based ► Portfolio analytics
■ Index ► Portfolio construction
As of September 30, 2015
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Voya Large Cap Growth Strategy
3. Voya Large Cap Growth Strategy
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Voya Large Cap Growth Strategy
INST LCGSP500 pres
Key Strengths and Advantages
Key Strengths Advantages
Consistent historical performance …92% outperformance vs. S&P 500 Index*
Alpha-driven results vs. beta-driven results
…Top quartile information ratio** due to stock selection
Unique approach to growth investing…Key is to understand market expectations
and discover unrecognized growth
Attractive upside and downside performance
…Has performed well in diverse market environments
Sources: FactSet and eVestment Alliance.*Performance results are on a rolling three-year basis as of 09/30/15.The calculation is based on composite results since inception (05/01/04) of the current investment team. Past performance is no guarantee of future results.** Source: eVestment Alliance. As of 09/30/15, see Competitive Investment Performance slide.
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Voya Large Cap Growth Strategy
Investment Team
Portfolio Management Team
Jeffrey Bianchi, CFA Portfolio Manager 21
Michael Pytosh Head of Equities and Portfolio Manager 29
Christopher Corapi Chief Investment Officer, Equities 33
Sector Research Team
Joan Dillon Health Care 29
Richard Parower, CFA Technology 25
James Dorment, CFA Consumer 20
Jayme Lisiewski Generalist 14
Yeon Hee Oh Generalist 14
Scott Mills, CFA Health Care 13
Rahul Jadhav, CFA Consumer 11
Ryan Carver Technology 4
Susan Eckman, CPA Technology 4
Bradley Roberts Consumer 3
Average Years of Experience 17
Name Responsibilities
Years of InvestmentExperience
As of September 30, 2015
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Voya Large Cap Growth Strategy
SMA LCGR pres
INST Mid-Cap G pres
INST LCGSP500 pres
INST LCGR pres
Bus Dev LCG R pres
Bus DevMidCap Opppres
Bus Dev LCG R pres
BD Growth Opps pres
MCG presLCG pres
Business Momentum
Valuation Market Recognition
Growth Philosophy
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Voya Large Cap Growth Strategy
Large Cap Growth Stock Universe
Portfolio Construction
Quantitative Screening
Fundamental Research Analysis
SMA LCGR pres
INST LCGSP500 pres
INST LCGR pres
Bus Dev LCG R pres
BD Growth opps pres
Investment Process Overview
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Voya Large Cap Growth Strategy
SMA LCGR pres
INST LCGSP500 pres
INST LCGR pres
Bus Dev LCG R pres
BD Growth Opps pres
LCG pres
All growth stocks with market capitalizations over $2 billion
Approximately 800 companies
Large Cap Growth Stock Universe
Portfolio Construction
Quantitative Screening
Fundamental Research Analysis
Investment Process
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Voya Large Cap Growth Strategy
SMA LCGR Pres
INST LCGSP500 pres
INST LCGR pres
Bus Dev LCG R pres
BD Growth Opps pres
LCG pres
Large Cap Growth Stock Universe
Portfolio Construction
Quantitative Screening
Fundamental Research Analysis
Performance Drivers
Business Momentum
► Earnings momentum, gross margin expansion
Valuation
► Free cash flow to EV, price-to-sales
Market Recognition
► Estimate revision, relative price strength
Emphasis on highly ranked stocks
Investment Process
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Voya Large Cap Growth Strategy
SMA LCGR pres
INST LCGSP500 pres
INST LCGR pres
Bus Dev LCG R pres
BD Growth Opps pres
LCG pres
Large Cap Growth Stock Universe
Portfolio Construction
Quantitative Screening
Fundamental Research Analysis
Research Team
Determines the underlying assumptions embedded in consensus expectations
Develops and confirms an investment thesis which differs from consensus
Identifies the pathway by which the stock’s price will be revalued higher
Key is to discover underappreciated or disputed growth stocks
Investment Process
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Voya Large Cap Growth Strategy
SMA LCGR pres
INST LCGSP500 pres
INST LCGR pres
Bus Dev LCG R pres
BD Growth Opps pres
LCG pres
Large Cap Growth Stock Universe
Portfolio Construction
Quantitative Screening
Fundamental Research Analysis
Bottom-up portfolio construction driven by the attractiveness of individual stocks, given benchmark weight, analyst conviction level, expected return and perceived risk
Holdings range: typically 50-70 stocks
Sector exposure typically will not exceed 300 basis points vs. the benchmark
Maximum position size of 300 basis points active weight
Daily risk monitoring to avoid any unintended portfolio risk exposures
Sell Criteria
Stock price reflects all anticipated improvements
Fundamentals deteriorate
Risk/reward profile less attractive than other stocks in the sector
Investment Process
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Voya Large Cap Growth Strategy
SMA LCGR pres
INST LCGSP500 pres
INST LCGR pres
Bus Dev LCG R pres
BD Growth Oppspres
LCG pres
Investment Thesis
Market share growth story which Wall Street did not fully recognize
Grew revenues despite weak environment with consumers cutting back discretionary spending
Clear winner in exploiting huge European market opportunity
Unique offering appealed to U.S. consumers’ increased focus on value
This example is for illustrative purposes only. It is being shown to demonstrate our investment process only. Data source: FactSet
Market Recognition
Valuation
Fundamental Research: Stock Example
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Dec-08 May-09 Sep-09 Jan-10 Jun-10 Oct-10 Mar-11 Jul-11 Nov-11 Mar-12 Aug-12 Dec-12 Apr-13 Sep-13
Stock Price
Add Buy Trim Sell
0.0
0.5
1.0
1.5
2.0
Price to Earnings – NTM – Relative to Russell 1000 Growth
0
20
40
60
EPS – NTM
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Voya Large Cap Growth Strategy
4. Portfolio Characteristics and Performance
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Voya Large Cap Growth Strategy
Portfolio Characteristics
Past performance does not guarantee future results. The returns-based characteristics presented are based on the gross-of-fee composite returns. All remaining holdings-based characteristics presented are based on end-of-month positions of the composite’s representative portfolio. Holdings and their weights will change over time and may differ across accounts. The security characteristics presented are calculated by industry-standard external data sources and are based upon individual securities, in aggregate, that comprise the portfolio and benchmark using available data. Securities that lack the relevant data necessary to calculate a given characteristic may be excluded from the universe. In addition, the data is adjusted to exclude extreme outliers from the aggregate statistics using the interquartile method. The information shown is supplemental information only. Calculation methodologies are available upon request. Source: FactSet and Voya IM. We deem FactSet to be a reliable source, but cannot guarantee accuracy and completeness.
Returns-BasedCharacteristics (5 yrs.)
Composite vs. S&P 500 Index
Standard Deviation (%) 11.93Tracking Error (%) 2.22Information Ratio 0.39Alpha (annualized %) 0.50Beta 1.03R-Squared 0.97
Portfolio Highlights as of September 30, 2015
Security Characteristics Portfolio S&P 500 IndexWeighted Average Market Cap ($Mil) 122,554 127,358Active Share 74.21 NAP/E (next 12 months) 19.47 17.50Price/Book 4.91 4.07Dividend Yield 1.51 2.28EPS Growth (3-5 Year Estimate) (%) 12.16 10.29PEG Ratio (next 12 months) 1.79 1.89Price to Cash Flow 16.49 13.78Return on Assets (%) 7.67 7.27Number of Issues 62 505
Ten Largest Stock Holdings % of PortfolioAPPLE INC 4.38JPMORGAN CHASE & CO 3.84ALPHABET INC 3.23VISA INC 3.12PFIZER INC 3.08WELLS FARGO & CO 3.04AMAZON.COM INC 2.72HOME DEPOT INC 2.56CVS HEALTH CORP 2.30DANAHER CORP 2.24
Sector Allocations % of Portfolio S&P 500 IndexConsumer Discretionary 14.87 13.09Consumer Staples 10.93 9.93Energy 5.55 6.93Financials 16.27 16.53Health Care 15.14 14.67Industrials 10.60 10.05Information Technology 23.59 20.41Materials 3.04 2.82Telecommunication Services 0.00 2.42Utilities 0.00 3.15
Top Ten Active Weights Active Weights (%)JPMORGAN CHASE & CO 2.50VISA INC 2.31ALPHABET INC 2.13DANAHER CORP 1.94PFIZER INC 1.93HOME DEPOT INC 1.68CVS HEALTH CORP 1.66EXTRA SPACE STORAGE INC 1.66WELLS FARGO & CO 1.62NIKE INC 1.56
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Voya Large Cap Growth Strategy
Performance
The Composite represents the investment results of a group of fully discretionary portfolios managed according to the strategy. Returns include the reinvestment of income. Gross returns are presented after transaction costs, but before management fees, which in addition to other fees incurred in the management of the portfolio, would further reduce returns. For a description of advisory fees, please see Form ADV, Part II . Past performance is no guarantee of future results and the possibility of loss does exist. Benchmark source: Standard & Poor’s.
(6.15)(3.98)
0.82
12.72 14.20
8.41 8.89
(6.44) (5.29)
(0.61)
12.40 13.34
6.80 7.14
(10)
0
10
20Quarter YTD 1 Year 3 Years 5 Years 10 Years
Team Inception(05/01/04)
Gro
ss r
ates
of r
etur
n (%
)
Composite S&P 500 Index
Annualized
Composite vs. S&P 500 IndexAs of September 30, 2015
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Gross Returns (%) 12.05 33.79 19.21 1.94 18.46 23.48 (33.14) 16.39 7.28 11.56S&P 500 Returns (%) 13.69 32.39 16.00 2.11 15.06 26.46 (37.00) 5.49 15.80 4.91
Excess Returns (%) (1.64) 1.40 3.21 (0.17) 3.40 (2.98) 3.86 10.90 (8.52) 6.65
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Voya Large Cap Growth Strategy
Performance Attribution
Voya Large Cap GrowthTeam inception (05/01/04 – 09/30/15)
*All returns are gross of fees. Source: FactSet
This attribution analysis is for informational purposes only, and is not intended as investment advice. This report includes securities that are current holdings, as well as securities that may have been sold during the quarter. Performance figures for individual sectors and individual securities are gross of fees. The fees charged by Voya IM are described in Part II of its Form ADV. This report sets forth the portfolio holdings for the quarter ended on the above date. It should not be assumed that securities held in the portfolio are profitable or will equal the performance of the securities mentioned herein. One account was selected by our portfolio managers as a representative account that generally best represents this investment management style. Voya IM did not use performance-based criteria in determining which account to include. These holdings represent only a representative portfolio and may not reflect the actual holdings of other portfolios managed by Voya IM. The performance of other portfolios may be better or worse than that of this representative portfolio. Past performance is not indicative of future results.
Average Total Contribution Average Total Contribution Average Total Contribution AllocationSelection TotalWeight Return To Return Weight Return To Return Weight Return To Return Effect Effect Effect
Consumer Discretionary 11.66 414.64 29.92 10.29 190.90 21.22 1.37 223.74 8.69 1.00 11.71 12.71
Health Care 15.06 310.04 32.33 12.78 199.33 18.24 2.28 110.71 14.09 -3.84 10.96 7.12
Materials 3.60 814.34 12.71 3.32 158.85 5.44 0.28 655.49 7.27 -0.31 9.57 9.26
Energy 10.62 250.53 27.24 10.79 191.52 15.32 -0.17 59.01 11.92 1.20 7.64 8.84
Consumer Staples 9.55 231.57 20.71 10.65 176.77 16.70 -1.10 54.80 4.01 0.76 4.03 4.78
Financials 14.92 43.26 6.99 17.41 14.22 2.09 -2.49 29.04 4.89 4.18 3.05 7.23
Telecommunication Services 1.10 101.36 4.09 2.98 115.72 4.78 -1.87 -14.36 -0.69 0.60 2.05 2.64
Utilities 0.45 31.15 1.47 3.40 171.06 5.38 -2.95 -139.91 -3.91 0.01 0.51 0.52
[Cash] 1.54 15.91 0.39 0.00 0.00 0.00 1.54 15.91 0.39 -0.53 0.00 -0.53
[Index Futures] 0.10 1.32 0.27 0.00 0.00 0.00 0.10 1.32 0.27 0.36 0.00 0.36
Information Technology 20.92 124.70 38.15 17.59 157.03 31.55 3.33 -32.33 6.61 2.01 -1.93 0.08
Industrials 10.46 110.42 10.33 10.78 148.44 14.15 -0.31 -38.03 -3.82 -0.88 -2.40 -3.28
Total 100.00 184.60 184.60 100.00 134.86 134.86 0.00 49.74 49.74 4.56 45.17 49.74
Representative Account Composite - LCGS S&P 500 Variation Attribution Analysis
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Voya Large Cap Growth Strategy
Pier Group Rankings
Based on the eVestment Alliance Large Cap Growth peer group universe. Returns are before the deduction of management fees and will be reduced by advisory fees and other fees incurred in the management of the portfolio. For a description of advisory fees, please see Form ADV, Part II. Past performance is no guarantee of future results. Please refer to the Voya Large Cap Growth Calendar Year Performance slide for the complete performance results and composite data. Performance shown is supplemental information only. Please refer to the GIPS-compliant Schedule of Composite Performance that follows. Source: eVestment Alliance, LLC.
*
INST LCG SP pres
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Voya Large Cap Growth Strategy
Assets Under Management
Collective Trust389 Mutual Fund - Retail
398
Mutual Fund - Variable Portfolio
6,102
Separate Account3,428
SICAV419
Commingled Funds $389 Million
Mutual/Variable Funds $6,500 Million
Separate Account $3,848 Million
As of September 30, 2015
Large Cap Growth: $10,737 Million
Note: Total includes Large Cap Grow th vs. Russell 1000 Grow th and vs. the S&P 500 Indexes
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Voya Large Cap Growth Strategy
SMA LCGR pres
INST LCGSP500 pres
INST LCGR pres
Bus Dev LCG R press
LCG pres
Alpha-driven results versus beta-driven results
Unique approach to growth investing
Consistent historical returns versus benchmark and peers
► In up and down markets
► On a rolling 3-year basis
Conclusion
31
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Voya Large Cap Growth Strategy
5. Appendix
32
For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to, the general public.
Voya Large Cap Growth Strategy
**In addition to investment management fees, administrative and operating expenses in the trust w hich include, but are not limited to, custody, accounting and audit are reflected in the valuation of the fund. The Trustee has voluntarily determined to pay out of its resources any administrative expenses w hich exceed 0.10%. Based on the total net assets of the fund, as of 09/30/15 the administrative expenses in the fund w ere estimated to be 0.02%.
*The Adviser has contractually agreed to limit expenses of the Fund. This expense limitation agreement excludes interest, taxes, investment-related costs, leverage expenses, and extraordinary expenses and may be subject to possible recoupment. Please see the Fund's prospectus for more information. The expense limits w ill continue through at least October 1, 2017. Expenses are being w aived to the contractual cap.
AssetsAnnual Management
Fee (%)Administrative Fees (%)
as of 09/30/15**
First $50mm 0.55 0.02
Next $50mm 0.40 0.02
Over $100mm 0.35 0.02
Voya Large Cap Growth — Collective Trust: Gross Asset Value Share Class
AssetsAnnual Management
Fee (%)Administrative Fees (%)
as of 09/30/15**
All Assets 0.55 0.02
Voya Large Cap Growth — Collective Trust: Net Asset Value Share Class
Class Net Expense Ratio (%)*
I Shares 0.85
R6 Shares 0.80
Voya Large Cap Growth Fund
Voya Large Cap Growth — Separate Account
AssetsAnnual Management
Fee (%)
First $25mm 0.60
Next $75mm 0.50
Next $150mm 0.45
Next $250mm 0.30
Over $500mm 0.20
Investment Vehicles and Fee Schedules
33
For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to, the general public.
Voya Large Cap Growth Strategy
INST Intro to Eq. Platform long and short pres
INST IV pres
SMA LCGR pres
INST SMID C G pres
INST SCC and G pres
INST Mid-Cap G pres
INST LCV pres
INST LCGSP500 pres
INST LCGR pres
INST IV pres
INST REI Large Cap pres
Bus Dev SCE pres
Bus Dev MidCap Opp pres
Bus Dev LCG R pres
Bus Dev LCV pres
Bus Dev Intro Eq platform Short pres
Bus Dev SCE pres
Bus Dev LCG R pres
Bus Dev LCV pres
Bus Dev Intro to EP S v pres
BD CL100 pres
BD Growth Opps pres
LCV PDSCC PDSCG PDRA PDAll equity presentationsPWA pres
Equity Investment Platform
Equity Investment PlatformChristopher Corapi, Chief Investment Officer, Equities
Michael Pytosh, Head of Equities
As of September 30, 2015.
Names in bold represent the team lead(s).
Growth
Michael PytoshJeffrey Bianchi, CFARyan CarverJoan DillonJames Dorment, CFASusan Eckman, CPARahul Jadhav, CFAJayme LisiewskiScott Mills, CFAYeon Hee Oh Richard Parower, CFABradley Roberts
Value
Christopher CorapiJohn BaileyErica BraileySteven BraunRonny EisemannKristy Finnegan, CFADaniel GoldsteinBrian MadonickSteven Rayner, CFA, CPAJames Swain, CFA
International Value
Martin JansenNakul ChaturvediRaphael Hausmann, CFADavid Umbro, CFAMaya VenkatramanJoseph Vultaggio
Small Cap
James HassoJoseph Basset, CFAEdward Graham, CFAJohn HelfstChristopher JenningsJeannette LouhBruce Williams, CPA
Portfolio Engineering
Vincent Costa, CFAPeg DiOrio, CFASteven WetterKai Yee WongJames Ying, CFADavid Zujkowski, CFA
Trading
Nanette BuziakEnrico CacciatoreThomas GenkingerBrian MurrayVictor TorchiaPeter Walsh
INST Intro to EPS pres
INST IV pres
SMA LCGR pres
INST SMID C G pres
INST SCC and G pres
INST RA pres
INST Mid-Cap G pres
INST LCV pres
INST LCGSP500 pres
INST LCGR pres
INST Intro to EPSV press
INST Intro to EPLV pres
INST IV pres
Bus Dev SCE pres
Bus Dev MidCapOpp pres
Bus Dev LCG R pres
Bus Dev LCV pres
Bus Dev Intro EP S v pres
Bus Dev SCE pres
Bus Dev LCG R pres
Bus Dev LCV pres
Bus Dev Intro to EP S v pres
BD CL100 pres
BD Growth Opps pres
LCV PDSCC PDSCG PDRA PDAll equity presentations
Business Development and Support
Client Portfolio ManagersWilliam Theriault, CFA
Portfolio SpecialistsLaurens ClarkeJulie KnauerErin Doyle Orekhov
Business PlannerKenneth Lee
Administrative Assistants Jane GonthaJean MaddaloniRoveina Wailes
34
For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to, the general public.
Voya Large Cap Growth Strategy
Jeffrey Bianchi, CFAPortfolio ManagerYears of investment experience: 21Years with company: 21Jeffrey Bianchi serves as a portfolio manager at Voya Investment Management for the large cap growth and mid cap growth strategies. When Jeff joined the firm he spent a year as a quantitative analyst before moving to the fundamental equity team where he then worked as an analyst covering the health care, technology and industrials sectors for the large cap growth strategies. He joined the large cap growth portfolio management team in 2000, was named a portfolio manager on the strategy in 2008, and was named a portfolio manager on the mid cap growth strategy in 2005. Jeffrey received a BA in economics, a BS in finance, and an MA in economics from the University of Connecticut and holds the Chartered Financial Analyst® designation.
Christopher CorapiChief Investment Officer, EquitiesYears of investment experience: 33Years with company: 11Christopher Corapi is the chief investment officer of equities at Voya Investment Management responsible for oversight of all equity strategies. Chris also is the portfolio manager for the large cap value, global value advantage and mid cap value advantage strategies. Chris joined the firm as the Head of U.S. Equities. Prior to joining the firm, Chris was the global head of equity research at Federated Investors. Previously, he was head of U.S. equities and portfolio manager at Credit Suisse Asset Management. Before joining Credit Suisse, Chris was with JPMorgan Investment Management as the head of emerging markets research and was a U.S. equity analyst at Sanford C. Bernstein & Company. He received a BS in business administration from Alfred University.
Michael PytoshHead of Equities and Portfolio ManagerYears of investment experience: 29Years with company: 11Michael Pytosh is head of equities with managerial responsibilities for the growth team at Voya Investment Management. Mike also serves as a portfolio manager for the large cap growth and mid cap growth strategies. Previously at the firm, Mike covered the technology sector as an analyst. Prior to joining the firm, he was president of Lincoln Equity Management, LLC and a technology analyst. Mike also served as a technology analyst at JPMorgan Investment Management and an analyst at Lehman Brothers. Mike started his career at American Express. He has a BS degree in accounting from Arizona State University and is a member of the Institute of Electrical and Electronic Engineers.
Portfolio Managers’ Biographies
35
For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to, the general public.
Voya Large Cap Growth Strategy
Schedule of Composite PerformanceVoya Large Cap Growth vs. S&P 500 Composite
LGSP5_COMPYear Gross Returns (%) Net Returns (%) S&P 500 Returns (%)Composite 3-Yr
St Dev (%)Benchmark 3-Yr
St Dev (%)Number of Portfolios
High Low
2014 12.05 11.38 13.69 10.18 8.97 12.08 11.72 ≤5 1,718 100,577
2013 33.79 33.01 32.39 12.69 11.94 34.15 33.13 ≤5 1,636 93,084
2012 19.21 18.50 16.00 16.04 15.09 19.24 18.55 ≤5 1,237 76,532
2011 1.94 1.33 2.11 17.75 18.71 2.04 1.80 ≤5 1,063 65,776
2010 18.46 17.53 15.06 20.37 21.85 18.63 17.39 ≤5 1,020 60,236
2009 23.48 22.51 26.46 17.83 19.63 24.71 23.29 ≤5 910 61,643
2008 (33.14) (33.69) (37.00) 14.73 15.08 (32.88) (34.73) 10 900 56,044
2007 16.39 15.48 5.49 9.18 7.68 17.32 16.10 14 1,393 74,322
2006 7.28 6.43 15.80 8.92 6.82 7.41 7.04 13 1,254 66,276
2005 11.56 10.68 4.91 9.33 9.04 12.08 11.45 14 1,140 58,983
Notes:
Treatment of Fees & Expenses:
Firm Definition:
Composite Definition:
Benchmark Definition:
Explanation of Risk Measures:
Other Notes:
This is an actively managed strategy that relies on fundamental research and analysis to identify large capitalization companies with strong and accelerating business momentum, increasing market acceptance, and attractive valuations. The objective is to outperform the S&P 500 Index before management fees over full market cycles. Portfolio valuations and returns for this composite are computed and stated in U.S. dollars. Effective January 1, 2003, a $5 million minimum has been set for inclusion in the composite, and prior to that, no portfolios were excluded based on size. There were several changes to the named “lead” portfolio manager of the investment strategy (represented by the composite) throughout its existence, but A) none of those changes had a substantial impact on the investment objective of the strategy; and B) the current lead manager had been part of the process in some capacity since 2000. In May of 2004, the investment process was significantly enhanced by leveraging the expertise of our centralized team of senior fundamental equity sector specialists on a going forward basis. The name of this composite changed in May 2014. The composite was formerly known as the ING Large-Cap Growth vs. S&P 500 Growth Equity Composite. This composite incepted on January 1, 1983 and was created in January 2000.
Returns are benchmarked to the S&P 500 Index, which does not incur management fees, transaction costs, or other expenses associated with a composite portfolio. The S&P 500 is a market-capitalization-weighted index of 500 large cap U.S. equities considered to be leading companies in leading industries with unadjusted market capitalization of US$ 4.0 billion or more. Securities prices used to value the benchmark index for the purposes of calculating total return may or may not differ significantly from those used to value securities held within composite portfolios.
Gross-of-fees returns are presented before management and custodial fees but after all trading expenses. Net-of-fees returns are calculated by deducting a hypothetical management fee from the gross return on a monthly basis and geometrically linking the results to produce annual returns shown. The hypothetical management fee is equal to the highest fee from any fee schedule offered at the time for the strategy shown. While fee schedules can change over time, any amended fee resulting from a change will not be retroactively applied to performance history, but will rather be applied on a prospective basis from the point of change. The annual management fee will vary according to the size of the account, and will depend on the type of investment vehicle selected. The current fee schedule for this strategy is: 0.60% on the first $25 million; 0.50% on the next $75 million; 0.45% on the next $150 million; 0.30% on the next $250 million; and 0.20% over $500 million. However, fee schedules may differ for pooled trusts or other types of investment vehicles. Further information regarding applicable fee schedules is available upon request.
"Dispersion of Portfolio Returns" presented for each annual period is based on gross-of-fees returns and is equal to the highest and lowest annual return among the portfolios that are included in the composite for the full year. "Composite 3-Yr St Dev" and "Benchmark 3-Yr St Dev" are rolling 3-year standard deviation calculations, which measure the variability of the monthly performance returns for the composite and benchmark index return over the preceding 36-month period on an annualized basis. If the composite has not been in existence for at least 3 years as of a particular year-end, then “NA” will be displayed.
Policies for valuing portfolios, calculating performance, and preparing compliant presentations, as well as a complete list of composite descriptions, are available upon request. Past performance is no guarantee of future results.
Dispersion of Portfolio Returns (%)
Assets in this Composite ($mm)
Total Firm Assets ($mm)
Voya Investment Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS Standards. Voya Investment Management has been independently verified for the period January 1, 1996, through December 31, 2014. Verification assesses whether (1) the firm has complied with all of the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Voya Large Cap Growth vs. S&P 500 Composite has been examined for the periods 1996-2011. The verification and performance examination reports are available upon request.
Voya Investment Management (the "Firm") is defined as all discretionary accounts managed by Voya Investment Management Co. LLC and its subsidiary Voya Investment Trust Co., but not including collateralized debt obligation structures, long/short hedge funds, structured mortgage derivative portfolios, or specialized accounts supporting the reinsurance arrangements of affiliated insurance companies. Effective May 1st, 2014, the firm changed its name from ING Investment Management to Voya Investment Management. No changes to composites nor to investment groups & processes resulted from this event.
36
For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to, the general public.
Voya Large Cap Growth Strategy
This information is proprietary and cannot be reproduced or distributed. Certain information may be received from sources Voy a Investment Management (“Voya IM”) considers reliable; Voya IM does not represent that such information is accurate or complet e. Certain statements contained herein may constitute “projections,” “forecasts” and other “forward -looking statements” which do not reflect actual results and are based primarily upon applying retroactively a hypothetical set of assumptions to certain histo rical financial data. Actual results, performance or events may differ materially from those in such statements. Any opinions, proj ections, forecasts and forward-looking statements presented herein are valid only as of the date of this document and are subject to chan ge. Nothing contained herein should be construed as (i) an offer to buy any security or (ii) a recommendation as to the advisabil ity of investing in, purchasing or selling any security. Voya IM assumes no obligation to update any forward -looking information.
Past performance is no guarantee of future results.
©2015 Voya Investments Distributor, LLC • 230 Park Ave, New York, NY 10169. All rights reserved.
Disclosure
Voya Investment Management Co. LLC (“Voya”) is exempt from the requirement to hold an Australian financial services license under the Corporations Act 2001 (Cth) (“Act”) in respect of the financial services it provides in Australia. Voya is regulated by the SEC under US laws, which differ from Australian laws.
This document or communication is being provided to you on the basis of your representation that you are a wholesale client (within the meaning of section 761G of the Act), and must not be provided to any other person without the written consent of Voya, which may be withheld in its absolute discretion.
Principal RisksThe principal risks are generally those attributable to stock investing generally. Holdings are subject to market, issuer, and other risks, and their values may fluctuate. Market risk is the risk that securities may decline in value due to factors affecting the securities markets or particular industries. Issuer risk is the risk that the value of a security may decline for reasons specific to the issuer, such as changes in its financial condition. More particularly, growth-oriented stocks typically sell at higher valuations than other stocks. If a growth-oriented stock does not exhibit the level of growth expected, its price may drop sharply. Additionally, growth-oriented stocks have been more volatile than value-oriented stocks.