Voya’s Target Retirement Funds are designed to specifically balance the evolving risk-return profiles of participants as they age to maximize the probability of a successful retirement. The target date in the funds’ name is the approximate date when investors plan to start withdrawing their money.
A Portfolio that Adjusts as Participants’ Careers Progress
At Voya, our glide path relative to peers has a higher equity allocation for younger participants to build wealth and a lower equity allocation for participants near and in retirement to reduce risk in those critical years. Younger participants can afford to take on more investment risk in exchange for greater potential returns. However, in the later years, participants are more vulnerable to a market downturn, particularly the day they retire.
Source: Voya Investment Management
The Portfolio may periodically deviate from the Target Allocation, generally within the range of +/- 10% relative to the current Target Allocation. The sub-adviser may determine to deviate by a wider margin in order to protect the Portfolio, achieve its investment objective, or to take advantage of particular opportunities. This chart is for illustrative purposes only and may not reflect the current allocations of the Voya Target Solution Trust Series. This illustration is intended to show how the Voya Target Solution Trust Series transitions over time.
Voya key differentiators
- Participant Focused Glide Path
Seeks to maximize wealth in early years and reduce risk in later years. A conservative 35% target equity allocation at retirement relative to peers.1 - Multi-Manager Approach2
Voya is a pioneer of the multi-manager target date approach, with 15 years+ of experience. Access to Voya and other well-known managers to help enhance diversification and reduce risk. - Intelligence Blend of Active & Passive Blend
Active managers may offer the potential for excess returns in less efficient asset classes. Passive managers may offer cost effective exposure to highly efficient asset classes within a competitive fee structure.
1 Between 50-40 years out from the fund’s “target date” the Voya’s Target Date Blend Series allocate 95% to equities compared to the industry average of 89%. At the “target date” the Voya Target Date Blend Series allocate 35% to equities compared to the industry average of 42%. Source: Morningstar. Average includes all mutual fund and VP target date suites in Morningstar. Equity allocations based on Years Target (YTT) Stock glide path data in Morningstar® Direct.
Product Facts
| Ticker Symbol | VTRJX |
| CUSIP | 92913M591 |
| Inception Date | December 21, 2015 |
| Dividends Paid | Annually |
| Min. Initial Investment | $1,000.00 |
About this Product
Voya Target Retirement Funds maximize asset accumulation in the early years of participants’ careers, taking aggressive equity positions. The funds shift emphasis to asset protection in later years, reducing risk and ultimately reaching their most conservative equity allocation of 35% at retirement to help investors hold onto what they have accumulated in a lifetime of saving.
The Voya Target Retirement 2040 Fund is designed for people who plan to begin living their retirement goals in the years 2038 to 2042. Currently, it is designed to begin reducing investment risk and exposure to stocks as contributions grow.
Investment Objective
Until the day prior to its Target Date, the Fund seeks to provide total return consistent with an asset allocation targeted at retirement in approximately 2040. On the Target Date, the Fund's investment objective will be to seek to provide a combination of total return and stability of principal consistent with an asset allocation targeted to retirement.
Performance
Average Annual Total Returns %
As of October 31, 2024
As of September 30, 2024
| Most Recent Month End | YTD | 1 YR | 3 YR | 5 YR | 10 YR | Expense Ratios | |
|---|---|---|---|---|---|---|---|
| Gross | Net | ||||||
| Net Asset Value | +12.54 | +28.10 | +3.43 | +9.38 | +7.89 | 0.66% | 0.65% |
| With Sales Charge | +6.09 | +20.71 | +1.41 | +8.10 | +7.25 | ||
| Net Asset Value | +15.20 | +27.66 | +5.85 | +10.34 | +8.35 | 0.66% | 0.65% |
| With Sales Charge | +8.60 | +20.28 | +3.79 | +9.04 | +7.71 | ||
| S&P Target Date 2040 Index | +12.24 | +27.29 | +4.38 | +9.20 | +8.15 | — | — |
| S&P Target Date 2040 Index | +14.91 | +26.62 | +6.63 | +10.17 | +8.61 | — | — |
Inception Date - Class A:December 21, 2015
Inception Date - Class I:December 20, 2012
Current Maximum Sales Charge: 5.75%
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.
Historical performance shown for Class A reflects the historical performance of Class I shares adjusted to reflect the higher expenses of Class A for periods prior to the inception date of Class A and is being shown in blue text. Historical performance of Class A shares likely would have been different based on differences in share class expense ratios.
The S&P Target Date® Index Series consists of twelve multi-asset class indices, each corresponding to a particular target retirement date. The benchmark asset allocation and glide path for each index in the series is determined once a year and represents market consensus across the universe of target date fund managers. The Index does not reflect fees, brokerage commissions, taxes or other expenses of investing. Investors cannot directly invest in an index.
Past performance does not guarantee future results.
Returns-Based Characteristics
As of October 31, 2024
| 3 Year | 5 Year | 10 Year | |
|---|---|---|---|
| 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. | -0.88 | -0.10 | — |
| 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. | 1.05 | 1.05 | — |
| 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. | -0.71 | 0.13 | — |
| 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. | 0.99 | 0.99 | — |
| 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. | -0.04 | 0.42 | — |
| 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. | 15.36 | 16.20 | — |
Growth of a $10,000 Investment
For the period 12/21/2015 through 10/31/2024
Ending Value: $21,793.00
The performance quoted in the "Growth of a $10,000 Investment" chart represents past performance. Performance shown is without sales charges; had sales charges been deducted, performance would have been less. Ending value includes reinvestment of distributions.
Portfolio
Portfolio Statistics
As of October 31, 2024
| 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. | $113.4 |
| Number of Holdings Number of Holdings: Number of Holdings in the investment. | 11 |
| Total |
Top Holdings
% of Total Investments as of October 31, 2024
| Nuveen S&P 500 Index Fund | 47.33 |
| Vanguard FTSE Developed Markets ETF | 13.05 |
| Voya Intermediate Bond R6 | 10.97 |
| Voya Multi-Manager International Equity I | 7.87 |
| iShares Core S&P Mid-Cap ETF | 6.02 |
| iShares Core S&P Small-Cap ETF | 3.95 |
| Voya VACS Series EME Fund | 2.95 |
| SPDR PORTFOLIO HIGH YIELD BOND ETF | 2.00 |
| Vanguard FTSE Emerging Markets ETF | 1.99 |
| iShares Core US Aggregate Bond ETF | 1.96 |
| Total | #,###.2 |
Portfolio Composition
as of October 31, 2024
| Long Govt Bonds | 1.90 |
| US Small Cap | 3.95 |
| High Yield | 2.00 |
| Emerging Markets | 4.94 |
| US Mid Cap Blend | 6.02 |
| Core Fixed Income | 12.94 |
| International | 20.92 |
| US Large Blend | 47.33 |
| Total | #,###.2 |
Information provided is not a recommendation to buy or sell any security. Portfolio data is subject to daily change.
Ratings
Distributions
Payment Frequency: Annually
| 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 | 12/28/2023 | 12/29/2023 | 12/27/2023 | $0.215800 |
| Totals: $0.215800 | ||||
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.
Investment Team
Portfolio Management Team
Voya Investments, LLC
Investment Adviser
Voya Investment Management Co. LLC
Investment Sub-Adviser
Barbara Reinhard, CFA
Senior Managing Director, Chief Investment Officer, Multi-Asset Strategies and Solutions
Years of Experience: 31
Years with Voya: 8
Lanyon Blair, CFA, CAIA
Head of Manager Research and Selection
Years of Experience: 16
Years with Voya: 9
Disclosures
Principal Risks
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: Affiliated Underlying Funds; Asset Allocation; Bank Instruments; Cash/ Cash Equivalents; Commodities; Company; Credit; Credit Default Swaps; Currency; Deflation; Derivative Instruments; Environmental, Social, and Governance (Funds-of-Funds); Floating Rate Loans; Foreign (Non-U.S.) Investments/ Developing and Emerging Markets; Growth Investing; High-Yield Securities; Index Strategy (Funds-of-Funds); Inflation-Indexed Bonds; Interest Rate; Liquidity; Market; Market Capitalization; Market Disruption and Geopolitical; Natural Resources/ Commodity Securities; Prepayment and Extension; Real Estate Companies and Real Estate Investment Trusts; U.S. Government Securities and Obligations; Underlying Funds; Value Investing. The “target date” is the approximate date when an investor plans to start withdrawing their money. When their target date is reached, they may have more or less than the original amount invested. For each target-date portfolio, until the day prior to its target date, the portfolio will seek to provide total returns consistent with an asset allocation targeted for an investor who is retiring in approximately each portfolio’s designated target year. On the target date, the portfolio will seek to provide a combination of total return and stability of principal. There is no guarantee that any investment option will achieve its stated objective. Principal value fluctuates and there is no guarantee of value at any time, including the target date. Important factors to consider when planning for retirement include your expected expenses, sources of income, and available assets. Before investing in the Voya Target Retirement Fund, weigh your objectives, time horizon, and risk tolerance. Diversification cannot assure a profit or protect against loss in a declining market. Investors should consult the Fund’s Prospectus and Statement of Additional Information for a more detailed discussion of the Fund’s risks.