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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

As of 3/31/241 Month3 MonthYTD1yr3yr5yr10yrSince Inception (1/02/04)
Composite Gross4.058.738.7323.9810.8614.1111.8610.51
Composite Net3.807.967.9620.417.6510.818.627.31
Index*3.2210.5610.5629.8811.4915.0512.9610.12

* S&P 500 Index

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.

Literature

Investment Team

Vincent Costa

Vincent Costa, CFA

Chief Investment Officer, Equities

Years of Experience: 39

Years with Voya: 18

Vincent Costa is chief investment officer, equities at Voya Investment Management and also serves as a portfolio manager for the active quantitative and fundamental large cap value strategies. Previously at Voya, he was head of the global quantitative equity team. Prior to joining Voya, he managed quantitative equity investments at both Merrill Lynch Investment Management and Bankers Trust Company. Vinnie earned an MBA in finance from New York University's Stern School of Business and a BS in quantitative business analysis from Pennsylvania State University. He is a CFA® Charterholder.
Steven Wetter

Steven Wetter

Portfolio Manager

Years of Experience: 36

Years with Voya: 12

Steven Wetter is a portfolio manager on the quantitative equity team at Voya Investment Management responsible for the index, research enhanced index and smart beta strategies. Prior to joining Voya, Steve was co-head of international indexing at BNY Mellon responsible for managing ETFs, index funds and quantitative portfolios. Prior to that, he held similar positions at Northern Trust and Bankers Trust. Steve earned an MBA in finance from New York University's Stern School of Business and a BA from the University of California at Berkeley.
Kai Yee Wong

Kai Yee Wong

Portfolio Manager

Years of Experience: 32

Years with Voya: 12

Kai Yee Wong is a portfolio manager on the quantitative equity team at Voya Investment Management responsible for the index, research enhanced index and smart beta strategies. Prior to joining the firm, she worked as a senior equity portfolio manager at Northern Trust responsible for managing various global indices including developed, emerging, real estate. Prior to that, Kai Yee was a portfolio manager with Deutsche Bank. Previously, she held roles with Bankers Trust and Bank of Tokyo. Kai Yee earned a BS from New York University Stern School of Business.

Disclosures

Principal Risk

All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. Investing in funds that are concentrated in a smaller number of holdings poses greater risk than funds with a larger number of holdings because each investment has a greater effect on the Fund's performance. The value of a participation fluctuates with the market value of the underlying portfolio securities of the Trust. The dividend income, if any, from the portfolio securities is subject to fluctuation which in turn will affect the amounts of distributions made to participants. An investor in the Trust has no assurance against loss in a declining market, and redemption at a time when the market value of the participations is less than their cost will result in a loss to the investor.

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