Voya Corporate Leaders® 100 SMA

Approach

The Corporate Leaders 100 Strategy seeks to outperform the market capitalization-weighted return of the S&P 500 index via a rules-based strategy designed to exploit market inefficiencies in a disciplined, systematic manner.

Investment Philosophy

We believe that equal positions in each company in the S&P 100 Index will produce better return/risk potential because it:

Reduces market cap bias: equal weighted positions avoid over-concentration in stocks, sectors and styles
Eliminates emotion: rules for rebalancing and risk controls enforce buy-low, sell-high discipline
Delivers pure large cap exposure: equal weighting the S&P 100 maintains 100% exposure to large cap stocks

Investment Process

The process of this rules-based approach revolves around an equal weighting of the S&P 100 index. Securities will be trimmed to 1% if they appreciate 50%* or more during any given quarter, while those that fall 30%* or more will be taken out of the portfolio. Quarterly rebalance realigns holdings to 1% weights. The process seeks to maximize upside capture and minimize downside exposure ratios, manage turnover, and capture and distribute gains to more attractively valued stocks. This is achieved by investing across a range of market cap and style spectra, focusing on the large-cap segment, with a mild Value bias.

*If a security is underperforming the S&P 500® index and the S&P 500® index is positive on an intra-quarter basis, the security will typically be sold when it declines by 30% or more irrespective of the percentage difference versus the S&P 500® index. If a security is underperforming the S&P 500® index and the S&P 500® index is negative on an intra-quarter basis, the security will typically be sold when it underperforms the S&P 500® index by 30 percentage points or more. This change went into effect on 5/18/20.

Performance

Performance data for this strategy is not available at this time.

Past performance does not guarantee future results.

Periods greater than one year are annualized. Performance data is considered final unless indicated as preliminary. Monthly performance is based on full GIPS Composite returns. Access the GIPS page for full composite details.

The Composite performance information represents the investment results of a group of fully discretionary accounts managed with the investment objective of outperforming the benchmark. Gross returns are presented after all transaction costs, but before management fees. Net-of-fees returns presented are calculated by subtracting a hypothetical maximum total wrap fee (estimated at 3.00% per annum) from the monthly gross-of-fees returns. The total wrap fee includes transaction costs, portfolio management, investment advisory, custodial and other administrative costs. Wrap fees vary amongst brokerage firms and may be negotiated based on account size and other factors.