Voya Small Cap Growth Fund Quarterly Commentary - 3Q26

• 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 2000 Growth Index (the Index) on a net asset value (NAV) basis, due to 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.

For the quarter ended September 30, 2026, the Fund underperformed the Index on a NAV basis, due to stock selection. Negative stock selection in the industrials, financials, and materials sectors was the leading detractor from performance along with an overall negative allocation effect. Stock selection in the consumer staples and real estate sectors and holding cash were the largest contributors to performance. 

Top individual detractors from performance included Allegro MicroSystems, Inc., Dycom Industries, Inc., and Forgent Power Solutions, Inc. 

Allegro MicroSystems, Inc. (ALGM) is a designer and manufacturer of high-performance magnetic sensors and power integrated circuits that serve as critical components in automotive electrification and advanced industrial applications. Shares of Allegro pulled back during the quarter, following sizable outperformance the previous quarter. ALGM was impacted by the overall selloff in the chip sector coupled with weaker results in Auto and some implied deceleration in the company’s Data Center growth. Importantly, Auto demand trends for Allegro remain robust with bookings and design wins both up 30% year over year while content expansion opportunities in Data Center remain on track and reflect a near tripling from current levels. Despite some near-term commodity headwinds, bill of materials optimization and select price increases should provide a tailwind to margin expansion in fiscal year 2027 and beyond. We added to the stock on weakness during the quarter. 

Dycom Industries, Inc. (DY), a provider of specialty contracting services for the telecommunications infrastructure and utility industries, underperformed for the quarter. Despite record 2Q26 results, a conservative guide disappointed investors. The announcement of a pushout of $150 million of wireless program revenue and increased fuel costs and workplace investments, combined with the perceived market share decline resulting from increased Starlink adoption, were all viewed negatively. We expect the company’s backlog of Fiber-To-The-Home (FTTH) and continued expansion into data center connectivity will act as a catalyst to drive the share higher in the near term. With short-term headwinds, we have reduced our position size but continue to hold the stock. 

Forgent Power Solutions, Inc. (FPS), designs and manufacturers electrical distribution equipment used in data centers, power grid and industrial facilities. FPS continues to see substantial demand in their core business, but margin pressure from an aggressive manufacturing capacity ramp while new facilities were not yet operating at full utilization, impacted the stock negatively during the quarter. Additionally, data center permitting has become a political hot button in the upcoming mid-term elections and given there was a lack of near-term catalysts for the stock, we sold our position. 

Top individual contributors included Repligen Corp., Five Below, Inc., and HeartFlow, Inc. 

Repligen Corp. (RGEN), a provider of bioprocessing technologies used in manufacturing biologic drugs, was the top performer during the quarter. Following a strong 2Q26 report that saw an acceleration in revenue growth coupled with an improved pace of margin expansion, RGEN announced a $1.5 billion acquisition of BioLife Solutions. The acquisition allows RGEN to expand into the high-growth cell and gene therapy market and management expects the transaction to be accretive to adjusted EPS in year one. After adding to the position earlier in the quarter, we continue to hold the stock but are mindful of the sizable outperformance. 

Five Below, Inc. (FIVE), a value retailer offering products ranging from fashion and leisure to party and snack items, was a positive contributor for the period. The initiatives of the new CEO regarding merchandising and marketing strategies, footprint expansion and margin enhancement through supply chain efficiency led to a blowout 2Q26 earnings report that featured a 23% sales increase and a sizable “beat-and-raise” guidance for full-year 2026. We trimmed the position during the quarter given the company’s larger market capitalization and the challenges facing the low-end consumer, but we continue to hold the stock given continued improving fundamental factors. 

HeartFlow, Inc. (HTFL), a technology vendor and workflow provider focused on diagnosing coronary artery disease, was a positive contributor during the quarter. HeartFlow analyzes patient blood flow and plaque levels by combining coronary CT scans and proprietary computer algorithms to risk stratify patients and determine if further surgical intervention is required. HTFL’s recent 2Q26 report handily beat consensus estimates, driven by a 48% increase in revenue. The company has seen significant adoption in their core FFRct business and has expanded into the rapidly emerging Plaque Analysis segment. As a leader in AI-enabled diagnostics, we believe HTFL is a positioned well for continued growth. Following significant appreciation during the quarter we trimmed the position but continue to hold the stock.

The quarter began with one of the largest Russell Index reconstitutions in history, characterized by significant turnover as approximately 250 names were removed from and added to the Russell 2000 Growth benchmark. This rebalancing materially shifted sector exposures, particularly as high-flying artificial intelligence-related weights graduated to large cap indices, leaving the benchmark more concentrated in biopharma and software. Following this structural shift, July witnessed a violent high-beta momentum unwind which was followed by a sharp rise in Treasury yields, with the 10-year yield surging towards 5.29%. This environment proved toxic for long-duration, cyclical small caps that are heavily dependent on future cash flows and external financing. Industrials were particularly hard-hit during this period, and although we had considerably reduced our industrials’ weight prior to the reconstitution, the portfolio remained overweight to industrials which negatively impacted relative returns given investors’ reassessment of the durability of the capital expenditure cycle amidst rising fuel costs and ongoing geopolitical tensions. 

We expect continued volatility as conflicting economic data and inflation trends fuel the U.S. Federal Reserve's debate over the timing of future rate hikes. At quarter end, markets were factoring in a 100% chance of a December rate hike. Cost pressures are increasingly impacting margins, particularly in sectors like industrials and materials where rising energy, freight, and labor costs continue to lag pricing actions taken by companies. In this environment, we are prioritizing companies with superior pricing power and strong balance sheets that can defend profitability despite these headwinds. The AI-driven momentum unwind during 3Q26 has reset valuations in selective areas of the infrastructure theme, creating a more compelling risk-reward profile for high-conviction names as we enter 4Q26. Despite the market expectation of a broader growth normalization, we continue to be constructive on the small cap asset class given there continue to be companies with strong growth opportunities and attractive valuations.

Companies mentioned in this report—percentage of portfolio investments, as of 09/30/26: Allegro MicroSystems, Inc. 1.06%, Dycom Industries, Inc. 0.50%, Forgent Power Solutions, Inc. 0.00%, Repligen Corp. 2.51%, Five Below, Inc., 1.16%, and HeartFlow, Inc. 0.77%; 0% indicates that the security is no longer in the Fund. Portfolio holdings are subject to daily change.