Voya Floating Rate Fund
An Attractive Income Option for a Strategic Allocation
With interest-rate volatility on the rise and investors still in search of attractive yield opportunities, now may be a great time for investors to establish a long-term senior loan allocation.
The Voya Floating Rate Fund Offers
Committed to a risk-adjusted approach
Seeks to avoid loss through rigorous credit underwriting
Emphasizes diversification and liquidity*
Product Facts
| Ticker Symbol | IFRAX |
| CUSIP | 92913L791 |
| Inception Date | August 17, 2010 |
| Dividends Paid | Monthly |
| Min. Initial Investment | $1,000.00 |
About this Product
- Designed to provide investors with a high level of monthly income
- Invests in ultra-short duration, below investment grade floating rate loans that reset every 30, 60 or 90 days, making the fund less affected by rising interest rates than many other fixed income funds
- Typically invests in senior secured asset-backed loans that are generally first in line to be repaid in the event of financial difficulty
- Allows for daily redemptions
Investment Objective
The Fund seeks to provide investors with a high level of current income.
Investment Team
Portfolio Management Team
Voya Investments, LLC
Investment Adviser
Voya Investment Management Co. LLC
Investment Sub-Adviser
Dan Norman
Group Head and Managing Director, Senior Loans
Years of Experience: 34
Years with Voya: 27
Jeffrey A Bakalar
Group Head and Chief Investment Officer, Senior Loans
Years of Experience: 33
Years with Voya: 21
Performance
Average Annual Total Returns %
As of July 31, 2019
As of June 30, 2019
| Most Recent Month End | YTD | 1 YR | 3 YR | 5 YR | 10 YR | Inception | Expense Ratios | |
|---|---|---|---|---|---|---|---|---|
| Gross | Net | |||||||
| Net Asset Value | +5.24 | +2.61 | +3.43 | +2.92 | — | +3.85 | 1.14% | 1.05% |
| With Sales Charge | +2.62 | +0.07 | +2.57 | +2.40 | — | +3.56 | ||
| Net Asset Value | +4.55 | +2.53 | +3.57 | +2.81 | — | +3.81 | 1.15% | 1.04% |
| With Sales Charge | +1.95 | -0.02 | +2.70 | +2.29 | — | +3.51 | ||
| S&P/LSTA Leveraged Loan Index | +6.59 | +4.03 | +5.02 | +3.85 | — | +4.79 | — | — |
| S&P/LSTA Leveraged Loan Index | +5.74 | +3.97 | +5.24 | +3.68 | — | +4.74 | — | — |
Inception Date - Class A:August 17, 2010
Current Maximum Sales Charge: 2.50%
The performance quoted represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. The investment return and principal value of an investment in the Portfolio will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. See above "Average Annual Total Returns %" for performance information current to the most recent month-end.
Returns for the other share classes will vary due to different charges and expenses. Performance assumes reinvestment of distributions and does not account for taxes.
Total investment return at net asset value has been calculated assuming a purchase at net asset value at the beginning of the period and a sale at net asset value at the end of the period; and assumes reinvestment of dividends, capital gain distributions and return of capital distributions/allocations, if any, in accordance with the provisions of the dividend reinvestment plan. Net asset value equals total Fund assets net of Fund expenses such as operating costs and management fees. Total investment return at net asset value is not annualized for periods less than one year.
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 will continue through at least 2020-08-01. Expenses are being waived to the contractual cap.
The S&P/LSTA Leveraged Loan Index is an unmanaged total return index that captures accrued interest, repayments, and market value changes. The Index does not reflect fees, brokerage commissions, taxes or other expenses of investing. Investors cannot invest directly in an index.
Yields
As of July 31, 2019
| SEC 30-Day Yield (Unsubsidized) SEC 30-Day Yield (Unsubsidized): A standardized yield calculation created by the SEC, it reflects the income earned during a 30-day period, after the deduction of the fund's gross expenses. Negative 30-Day SEC Yield results when accrued expenses of the past 30 days exceed the income collected during the past 30 days. | 4.96 |
| SEC 30-Day Yield (Subsidized) SEC 30-Day Yield (Subsidized): A standardized yield calculation created by the SEC, it reflects the income earned during a 30-day period, after the deduction of the fund's net expenses (net of any expense waivers or reimbursements). | 5.00 |
| Distribution Yield @ NAV Distribution Yield @ NAV: Current annualized distribution rate based upon NAV is the latest dividend shown as an annualized percentage of net asset value. | 5.29 |
| Distribution Yield @ MOP Distribution Yield @ MOP: Current annualized distribution rate, based upon maximum offering price which is adjusted for sales changes (MOP), where applicable, is the latest dividend shown as an annualized percentage of maximum offering price. | 5.15 |
Returns Based Statistics
As of July 31, 2019
| 3 Year | 5 Year | 10 Year | |
|---|---|---|---|
| Standard Deviation Standard Deviation: A measure of the degree to which an individual probability value varies from the distribution mean. The higher the number, the greater the risk. | 2.59 | 2.63 | — |
| Beta Beta: The sensitivity of a portfolio's returns to changes in the return of the market as measured by the index or benchmark that represents the market. A portfolio with a beta of 1.0 behaves exactly like the index. A beta less than 1.0 suggests lower risk than the index, while a beta greater than 1.0 indicates a risk level higher than the index. | 0.94 | 0.86 | — |
| R2 R2: The proportion of the variation in a portfolio's returns that can be explained by the variability of the returns of an index. High R-squared (close to 1.0) is usually consistent with broad diversification. | 97.59 | 95.69 | — |
| Alpha Alpha: A measure of risk-adjusted performance; alpha reflects the difference between a portfolio's actual return and the return that could be expected give its risk as measured by beta. | -1.33 | -0.47 | — |
| Sharpe Ratio Sharpe Ratio: A risk-adjusted measure calculated using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe ratio, the better the portfolio's historical risk-adjusted performance. | 0.78 | 0.78 | — |
| Information Ratio Information Ratio: The ratio of portfolio returns in excess of a market index to the variability of those excess returns; in effect, information ratio describes the value added by active management in relation to the risk taken to achieve those returns. | -3.63 | -1.33 | — |
Calendar Year Returns %
Past performance is no guarantee of future results. Returns are shown in %. These figures are for the year ended December 31 of each year. They do not reflect sales charges and would be lower if they did. The bar chart above shows the Fund's annual returns and long-term performance, and illustrates the variability of the Fund’s returns.
Portfolio
Portfolio Statistics
As of July 31, 2019
| Net Assets millions Net Assets: The per-share dollar amount of the fund, calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding. | $1,451.7 |
| Number of Holdings Number of Holdings: Number of Holdings in the investment. | 364 |
| Borrowings | $0.00 |
| Number of Issuers | 306 |
| Industries Represented | 35 |
| Weighted Average Maturity years Weighted Average Maturity: The length of time until the average security in a fund will mature or be redeemed by its issuer. It indicates a fund's sensitivity to interest rate changes: longer average weighted maturity implies greater volatility in response to interest rate changes. | 5.22 |
| Total Assets Under Management | $1,451,733,445.0 |
| Borrowings as % Of AUM | 0.00% |
| Avg. Investment | 4,744,226.94 |
| Avg. Investment as % of AUM | 0.33% |
| Total |
Weighted Averages
As of July 31, 2019
| Weighted Avg. Rating Factor Weighted Avg. Rating Factor: Weighted Average Rating Factor is a measure that is used by credit rating companies to determine the credit quality of a portfolio. This measure allows rating companies to look at a portfolio as a single security, and assign it a single rating. | 2,582 |
| Weighted Average Spread Weighted Average Spread: Weighted Average Spread is the average contractual spread of each senior loan, above its base rate. | 3.64% |
| Weighted Average Days To Reset Weighted Average Days To Reset: Weighted Average Reset measures the average number of days that the current interest rate contracts are in effect. | 37.80 |
| Weighted Average Maturity years Weighted Average Maturity: The length of time until the average security in a fund will mature or be redeemed by its issuer. It indicates a fund's sensitivity to interest rate changes: longer average weighted maturity implies greater volatility in response to interest rate changes. | 5.22 |
| Weighted Avg. Coupon Weighted Avg. Coupon: Weighted Average Coupon is the weighted-average gross interest rates of the pool of senior loans at the time of calculation. | 5.89% |
| Weighted Average Market Price Weighted Average Market Price: Weighted Average Market Price is calculated as the market price of each loan divided by the par amount outstanding. | 96.89 |
| Total |
Portfolio Composition
as of July 31, 2019
| Senior Loans | 95.00 |
| - First Lien | 96.31 |
| - Second Lien | 3.69 |
| - Secured | 100.00 |
| - Unsecured | 0.00 |
| Cash & Other Net Assets* | 5.00 |
| Total | #,###.2 |
*These weightings reflect "other net assets." "Other net assets" includes cash, payables, receivables and all other assets and liabilities on the balance sheet.
Top Issuers
as of July 31, 2019
| Asurion, LLC | 1.48 |
| Maxar Technologies Ltd. (f/k/a MacDonald, Dettwiler and Associates Ltd. a/k/a MDA) | 0.93 |
| Reynolds Group Holdings Inc | 0.80 |
| The Stars Group (fka Amaya) | 0.79 |
| Equinox Holdings, Inc. | 0.76 |
| Albertsons LLC | 0.75 |
| Gates Global LLC | 0.73 |
| CenturyLink | 0.72 |
| BMC Software, Inc. | 0.71 |
| Caesars Resort Collection | 0.70 |
| Total | #,###.2 |
Credit Quality
% of Total Investments as of July 31, 2019
| B | 78.49 |
| BB | 14.88 |
| BBB | 1.43 |
| CCC or Lower | 5.20 |
| Not Rated | 0.00 |
| Total | #,###.2 |
The Standard & Poor's rating scale is as follows, from excellent (high grade) to poor (including default): AAA to D, with intermediate ratings offered at each level between AA and CCC. Anything lower than a BBB- rating is considered a non-investment grade or junk bond. Any security that is not rated by Standard & Poor's is placed in the NR (Not Rated) category.
Top Industry
% of Total Investments as of July 31, 2019
| Electronics/Electrical | 14.05 |
| Business Equipment & Services | 11.74 |
| Health Care | 9.96 |
| Telecommunications | 6.42 |
| Leisure Goods/Activities/Movies | 5.34 |
| Diversified Insurance | 4.99 |
| Containers & Glass Products | 4.31 |
| Automotive | 3.84 |
| Lodging & Casinos | 3.31 |
| Chemicals & Plastics | 3.19 |
| Total | #,###.2 |
Top Country Weightings
% of Total Investments as of July 31, 2019
| United States | 81.09 |
| Netherlands | 3.75 |
| Canada | 2.99 |
| Luxembourg | 1.95 |
| Ireland | 0.91 |
| United Kingdom | 0.78 |
| France | 0.69 |
| Australia | 0.22 |
| Singapore | 0.15 |
| Total | #,###.2 |
Information provided is not a recommendation to buy or sell any security. Portfolio data is subject to daily change.
Distributions
Distributions
Payment Frequency: Monthly
| Ex-Date
Ex-Date: Date on which a stock begins trading without the benefit of the dividend. Typically, a stock’s price moves up by the dollar amount of the dividend as the ex-dividend date approaches, then falls by the amount of the dividend after that date. | Payable Date
Payable Date: Date on which a declared stock dividend or a bond interest payment is scheduled to be paid. | Record Date
Record Date: Date on which a shareholder must officially own shares in order to be entitled to a dividend. After the date of record, the stock is said to be ex-dividend. | Amount | |
|---|---|---|---|---|
| Income Dividend | 07/31/2019 | $0.043000 | ||
| Income Dividend | 06/30/2019 | $0.041600 | ||
| Income Dividend | 05/31/2019 | $0.044400 | ||
| Income Dividend | 04/30/2019 | $0.042500 | ||
| Income Dividend | 03/31/2019 | $0.043900 | ||
| Income Dividend | 02/28/2019 | $0.039600 | ||
| Income Dividend | 01/31/2019 | $0.043900 | ||
| Income Dividend | 12/31/2018 | $0.040400 | ||
| Income Dividend | 11/30/2018 | $0.038300 | ||
| Income Dividend | 10/31/2018 | $0.037300 | ||
| Income Dividend | 09/30/2018 | $0.035800 | ||
| Income Dividend | 08/31/2018 | $0.037000 | ||
| Income Dividend | 07/31/2018 | $0.036600 | ||
| Totals: $0.524300 | ||||
Income Dividend: Payout to shareholders of interest, dividends, or other income received by the Fund, net of operating expenses. By law, all such income must be distributed to shareholders, who may choose to take the money in cash or reinvest it in more shares of the Fund.
Short-Term Capital Gain: The profit realized from the sale of securities held for less than one year.
Long-Term Capital Gain: Gain on the sale of a security where the holding period was 12 months or more and the profit was subject to the long-term capital gains tax.
Ratings
Disclosures
Principal Risks
Investment Risks: The Fund invests primarily in below investment grade, floating rate senior loans (also known as "high yield" or "junk" instruments), which are subject to greater levels of liquidity, credit, and other risks than are investment grade instruments. There is a limited secondary market for floating rate loans, which may limit the Fund’s ability to sell a loan in a timely fashion or at a favorable price. If a loan is illiquid, the value of the loan may be negatively impacted and the manager may not be able to sell the loan in order to meet redemption needs or other portfolio cash requirements. The value of loans in the Fund could be negatively impacted by adverse economic or market conditions and by the failure of borrowers to repay principal or interest. A decrease in demand for loans may adversely affect the value of the Fund’s investments, causing the Fund’s net asset value to fall. Because of the limited market for floating rate senior loans, it may be difficult to value loans in the Fund on a daily basis. The actual price the Fund receives upon the sale of a loan could differ significantly from the value assigned to it in the Fund. The Fund may invest in foreign instruments, which may present increased market, liquidity, currency, interest rate, political, information, and other risks. These risks may be greater in the case of emerging market loans. Although interest rates for floating rate senior loans typically reset periodically, changes in market interest rates may impact the valuation of loans in the portfolio. In the case of early prepayment of loans in the Fund, the Fund may realize proceeds from the repayment that are less than the valuation assigned to the loan by the Fund. In the case of extensions of payment periods by borrowers on loans in the Fund, the valuation of the loans may be reduced. The Fund may also invest in other investment companies and will pay a proportional share of the expenses of the other investment company. Other risks of the Fund include but are not limited to: Borrowings; Diversification Risks; and Concentration Risks. Investors should consult the Fund’s Prospectus and Statement of Additional Information for a more detailed discussion of the Fund’s risk.
The Morningstar Analyst Rating is not a credit or risk rating, but a subjective evaluation performed by the analysts of Morningstar, Inc.. Morningstar evaluates funds based on five key pillars (process, performance, people, parent and price). Morningstar’s analysts use this evaluation to identify funds they believe are more likely to outperform over the long term on a risk adjusted basis. Analysts consider quantitative and qualitative factors and the weighting of each pillar may vary. The Analyst Rating reflects an overall assessment and is overseen by Morningstar’s Analyst Rating Committee. The analyst rating scale is five-tiered, with three positive ratings (Gold, Silver, Bronze), a Neutral Rating and a Negative Rating, with Gold being the highest rating and Negative being the lowest rating. Analyst ratings are reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to http://www.morningstar.com/Cover/videoCenter.aspx?id=591905. The Morningstar analyst Ratings should not be used as the sole basis in evaluating a mutual fund and are based on Morningstar’s current expectations about future events. Morningstar does not represent ratings as a guarantee. Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly.
©2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. past performance is no guarantee of future results.