Voya Large Cap Value Fund Quarterly Commentary - 3Q26
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Voya Large Cap Value Fund Quarterly Commentary - 3Q26

Key Takeaways

Large cap equities advanced during the third quarter, while mid and small cap indices declined and value generally outperformed growth. Sector leadership favored energy, technology, and health care, supported by resilient earnings and continued investment in AI-related infrastructure. As the quarter progressed, renewed enthusiasm around AI and the emerging opportunities associated with agentic AI supported select growth-oriented areas of the market, even as broader participation remained uneven.

For the quarter ended September 30, 2026, the Fund underperformed the Russell 1000 Value Index (the Index) on a net asset value (NAV) basis, due to unfavorable stock selection. 

Equity markets continue to navigate a mixed backdrop of resilient economic activity and corporate earnings alongside elevated valuations, interest-rate uncertainty, and geopolitical and policy risks. Continued investment in AI infrastructure remains an important source of earnings growth, while increasing focus on agentic AI is broadening attention from the infrastructure buildout toward companies positioned to benefit from AI adoption and monetization. Against this backdrop, we believe a selective approach remains warranted, with opportunities across both secular growth themes and attractively valued areas of the market.

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

Portfolio review

U.S. equities posted modest gains during the third quarter, although performance was increasingly concentrated in a handful of large cap technology and energy companies. The S&P 500 gained 2.30% on a total return basis and the Nasdaq advanced 2.47% on a price return basis, supported by resilient economic growth, strong corporate earnings, and continued enthusiasm surrounding artificial intelligence. Investors also navigated persistent inflation pressures, the U.S. Federal Reserve's first rate increase since 2023, and sharply higher Treasury yields as expectations for additional policy tightening increased. However, stable labor market conditions and expectations for another quarter of robust earnings growth continued to support investor sentiment. Against this backdrop, large cap stocks significantly outperformed small cap stocks, while value stocks outpaced growth stocks during the quarter. Energy, information technology, and healthcare led market performance, while utilities, industrials, and real estate lagged. 

Sector performance varied significantly during the quarter. Energy was the strongest-performing sector, as rising oil prices and geopolitical tensions supported the outlook for producers. Information technology advanced, driven by ongoing demand for AI infrastructure, software, and cloud computing, while healthcare benefited from strength in medical technology, hospitals, and biotechnology. In contrast, utilities, industrials, and real estate lagged as rising Treasury yields pressured rate-sensitive industries and increased financing costs. Sector performance reflected two competing forces during the quarter: strong demand for AI-related technologies and rising energy prices supported market leaders, while higher interest rates pressured many rate-sensitive areas of the market. 

For the quarter ended September 30, 2026, the Fund underperformed the Index on a NAV basis due to unfavorable stock selection. Stock selection within information technology, industrials, and health care sectors detracted the most from performance. Conversely, stock selection within consumer discretionary, consumer staples, and communication services sectors contributed the most to performance. 

At the individual stock level, our underweight position in Apple Inc. (AAPL), position in International Business Machines Corp. (IBM), and owning a non-benchmark position in Nokia Oyj Sponsored ADR (NOK) detracted from performance the most. 

Our underweight position in Apple Inc. (AAPL) detracted from results, as strong iPhone demand, continued growth in Services, and enthusiasm around the company’s product roadmap and AI opportunity supported the stock. 

Our position in International Business Machines Corp. (IBM) detracted from performance, as shares declined following disappointing second-quarter earnings results, including weaker-than-expected performance in parts of its software business. 

Owning a non-benchmark position in Nokia Oyj Sponsored ADR (NOK) detracted from performance as the stock declined amid continued weakness in telecommunication infrastructure spending and uncertainty around the pace of a recovery in carrier capital expenditures. 

Overweight to Thermo Fisher Scientific Inc. (TMO) and Chevron Corp. (CVX), as well as not owning Intel Corp. (INTC) were the biggest individual contributors. 

An overweight position in Thermo Fisher Scientific Inc. (TMO) contributed to performance as the stock rallied on improving life sciences demand trends and growing confidence in a recovery in research and biotechnology spending. 

An overweight position in Chevron Corp. (CVX) contributed to performance, with shares benefiting from rising oil prices amid tighter supply conditions and heightened geopolitical uncertainty. 

Not owning Intel Corp. (INTC) detracted from performance as the stock rallied on improving sentiment around the company’s turnaround, supported by stronger operating results and growing optimism around its data center, AI and foundry businesses.

Current strategy and outlook

U.S. equities enter the fourth quarter supported by resilient economic growth, stable labor market conditions, strong corporate earnings, and continued investment tied to AI. Demand for technology, software, cloud infrastructure, and AI-related spending remains strong, supporting a favorable backdrop for corporate investment and innovation. 

The primary risk to the outlook remains inflation and its impact on interest rates. The Fed raised its target range for the fed funds rate by 25 basis points to 3.75%–4.00% in September, signaling a continued focus on containing inflation. Combined with hawkish policy signals and Treasury yields near multi-decade highs, this suggests financial conditions could remain restrictive. Investors will be closely watching whether inflation moderates without significantly weakening growth or consumer demand. 

Ongoing investment in AI infrastructure and the growing adoption of AI tools across industries would remain important drivers of earnings growth. Growing interest in agentic AI and emerging monetization opportunities are also broadening investor focus beyond infrastructure providers toward companies positioned to benefit from implementation and commercial adoption. The path of inflation, interest rates, earnings growth, and the adoption of AI are likely to be a key determinant of equity performance in the months ahead.

Holdings detail

Companies mentioned in this report—percentage of Strategy investments, as of 09/30/26: Apple Inc. 2.81%, International Business Machines Corp. 0.00%, Nokia Oyj Sponsored ADR 0.72%, Thermo Fisher Scientific Inc. 1.99%, Chevron Corp. 2.73%, and Intel Corp. 0.00%, 0% indicates that the security is no longer in the portfolio. Portfolio holdings are subject to daily change.

Related Resources

Voya Large Cap Value Fund Fact Sheet

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Voya Large Cap Value Fund

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

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


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


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

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