Voya Investment Management's Q2 2024 Strategy Commentaries: Large Cap Value, Large Cap Growth, and Mid Cap Opportunities

Voya Large Cap Value Strategy Q2 2024 Commentary

AI continues to be a catalyst for growth, and markets are anticipating rate cuts to begin before year-end, which is all good news for equities. U.S. stocks advanced during the second quarter on continued strength in the labor market and in several key economic measures. The S&P 500 Index (SP500, SPX) rose by 4.28% during the quarter and the Nasdaq Composite (COMP:IND) grew by 8.26%. The information technology and communication services sectors led, while energy and materials lagged. Large-cap stocks outperformed small caps and growth significantly beat value. The Federal Open Market Committee held interest rates steady throughout the quarter and is now expected to cut rates only once in 2024. While U.S. Federal Reserve Chair Powell acknowledged modest progress on taming inflation at the central bank's June meeting, he emphasized the need for more confidence about the inflation situation before making any changes to rates. U.S. bond performance was essentially flat during the quarter. The Bloomberg U.S. Aggregate Bond Index inched up 0.07%, and the 10-year U.S. Treasury yield (US10Y) rose from 4.33% at the start of April to 4.36% by quarter end. For the quarter ended June 30, 2024, the Strategy outperformed the Index on a NAV basis due to favorable stock selection. Stock selection within in the communication services, and health care sectors contributed the most to performance. Conversely, the selection in consumer staples, industrials and consumer discretionary detracted from performance. At the individual stock level, overweight positions in AT&T Inc. (T), Welltower Inc. (WELL) and Philip Morris International Inc. (PM) added the most to performance. Owning an overweight position in AT&T Inc. (T) proved favorable. T generated strong free cash flow ('FCF') in the quarter, a key investor metric with which the company can reduce debt and reinstate its buyback program. An overweight position in health care real estate investment trust ('REIT'), Welltower Inc. (WELL), contributed to performance during the period. WELL reported strong quarterly results and raised forward guidance driven by continued strong growth in senior housing. An overweight position in Philip Morris International Inc. (PM) generated positive results during the quarter. Shares advanced throughout the period due to its strong earnings report, citing solid gains in its IQOS product, and raised guidance. PM continues to realize growth in its smoke-free business, further increasing investor confidence. An overweight position in Kenvue, Inc., Las Vegas Sands Corp. and Saia, Inc. were the biggest individual detractors. Our overweight position in Kenvue, Inc. (KVUE) detracted from results. KVUE underperformed as investor confidence in longer- term financial targets has weakened. An overweight position in Las Vegas Sands Corp. (LVS) was a headwind during the period. LVS underperformed due to investor concern about market share losses in Macau. An overweight position in Saia, Inc. (SAIA) proved unfavorable during the period. The share price declined following the company's disappointing earnings results, which fell below expectations due to lower shipment volumes. The resilience of the U.S. economy persists. Despite the effects from continued monetary tightness, economic growth remains strong, driven by gains in payrolls and productivity. Consumer spending is stable, supported by a significant increase in household net worth. However, consumer confidence remains below average due to the lasting impact of higher prices. While inflation has fallen to more manageable levels, concerns about overheating persist. While core inflation has declined for 14 consecutive months, core services prices are still rising. A downshift in growth and loosening of the labor market may be necessary to maintain inflation near the Fed's 2% target. This does not imply significant economic weakness, but it may keep rates higher for longer than expected. Strong earnings momentum - which could continue through the year - has supported U.S. stocks. The growth and quality of earnings have justified expensive stock valuations, particularly in mega-cap technology stocks. However, we expect the rally to broaden, with value-oriented and smaller cap segments taking the lead. The economic soft landing and anticipated rate cuts should create favorable conditions for U.S. stocks, despite potential near-term pullbacks. Companies mentioned in this report - percentage of Strategy investments, as of 06/30/24: AT&T, Inc. 3.80%, Welltower, Inc. 3.02%, Philip Morris International Inc. 3.46%, Kenvue, Inc. 2.03%, Las Vegas Sands Corp. 1.55%, Saia, Inc. 1.16%, 0% indicates that the security is no longer in the portfolio. Portfolio holdings are subject to daily change. Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

Voya Large Cap Growth Strategy Q2 2024 Commentary

U.S. stocks advanced during the second quarter on continued strength in the labor market and in several key economic measures. The S&P 500 Index (SP500,SPX) rose by 4.28% during the quarter and the Nasdaq Composite (COMP:IND) grew by 8.26%. The information technology and communication services sectors led, while energy and materials lagged. Large-cap stocks outperformed small caps and growth significantly beat value. The Federal Open Market Committee held interest rates steady throughout the quarter and is now expected to cut rates only once in 2024. While Fed Chair Powell acknowledged modest progress on taming inflation at the central bank's June meeting, he emphasized the need for more confidence about the inflation situation before making any changes to rates. U.S. bond performance was essentially flat during the quarter. The Bloomberg U.S. Aggregate Bond Index inched up 0.07%, and the 10-year U.S. Treasury yield (US10Y) rose from 4.33% at the start of April to 4.36% by quarter end. For the quarter ended June 30, 2024, the Strategy underperformed the Index on a NAV basis primarily due to unfavorable stock selection. The underperformance was namely driven by negative stock selection, most notably within the information technology, communication services and consumer staples sectors. While overweight allocations to the health care and industrials sectors detracted from performance, positive stock selection within the sectors added the most value. Strong stock selection within financials and consumer discretionary sectors also contributed to performance. Key contributors to performance were Home Depot , Inc. (HD) , Mastercard Inc. (MA) and Nvidia Corp. (NVDA) Not owning The Home Depot, Inc. generated positive results during the period. HD and its home improvement peers have struggled amid continued inflationary pressures and a struggling housing market. With expectations that these concerns will persist throughout the remainder of 2024, the stock price declined. Not owning Mastercard Inc. (MA) proved favorable during the quarter. While MA's earning report exceeded expectations, shares traded off on management's lowered 2024 outlook. Unfavorable foreign exchange (FX) and implied rebates and incentives growth headwinds are expected to weigh on results. Our overweight position in Nvidia Corp. (NVDA) contributed to performance during the quarter. NVDA shares advanced throughout the period driven by its dominance in the semiconductor industry as a forerunner in and beneficiary of AI technology. As a result, the stock reached a U.S. $3+ trillion market cap company, making it the world's 3rd largest company by market cap, only surpassed by Microsoft and Apple. Key detractors from performance were Apple Inc., Alphabet Inc. and Repligen Corp. Our underweight in Apple Inc. (AAPL) was a headwind during the period. Relative underperformance was driven by AAPL's strong quarterly results. The company's announcement regarding its AI investments further fueled favorable investor sentiment. Our underweight in Alphabet Inc. (GOOGL) detracted from results. Shares advanced following the company's strong quarterly results. The company's announcement regarding its AI investments further fueled favorable investor sentiment. Our overweight position in Repligen Corp. (RGEN) proved unfavorable during the period. In addition to an earnings report that fell below expectations largely driven by continued weakness in China, concerns regarding the company's overspend on research and development weighed on the stock. The resilience of the U.S. economy persists. Despite the effects from continued monetary tightness, economic growth remains strong, driven by gains in payrolls and productivity. Consumer spending is stable, supported by a significant increase in household net worth. However, consumer confidence remains below average due to the lasting impact of higher prices. While inflation has fallen to more manageable levels, concerns about overheating persist. While core inflation has declined for 14 consecutive months, core services prices are still rising. A downshift in growth and loosening of the labor market may be necessary to maintain inflation near the Fed's 2% target. This does not imply significant economic weakness, but it may keep rates higher for longer than expected. Strong earnings momentum - which could continue through the year - has supported U.S. stocks. The growth and quality of earnings have justified expensive stock valuations, particularly in mega-cap technology stocks. However, we expect the rally to broaden, with value-oriented and smaller cap segments taking the lead. The economic soft landing and anticipated rate cuts should create favorable conditions for U.S. stocks, despite potential near-term pullbacks. Companies mentioned in this report - percentage of Strategy investments, as of 06/30/24: Home Depot, Inc. 0%, Mastercard Inc. 0%, Nvidia Corp. 11.29%, Apple Inc. 9.68%, Alphabet Inc. 3.08% and Repligen Corp. 0.56%; 0% indicates that the security is no longer in the portfolio. Portfolio holdings are subject to daily change. Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

Voya MidCap Opportunities Strategy Q2 2024 Commentary

U.S. stocks advanced during the second quarter on continued strength in the labor market and in several key economic measures. The S&P 500 Index (SP500, SPX) rose by 4.28% during the quarter and the Nasdaq Composite (COMP:IND) grew by 8.26%. The information technology and communication services sectors led, while energy and materials lagged. Large-cap stocks outperformed small caps and growth significantly beat value. The Federal Open Market Committee held interest rates steady throughout the quarter and is now expected to cut rates only once in 2024. While Fed Chair Powell acknowledged modest progress on taming inflation at the central bank's June meeting, he emphasized the need for more confidence about the inflation situation before making any changes to rates. U.S. bond performance was essentially flat during the quarter. The Bloomberg U.S. Aggregate Bond Index inched up 0.07%, and the 10-year U.S. Treasury (US10Y) yield rose from 4.33% at the start of April to 4.36% by quarter end. For the quarter, the Strategy underperformed the Index on a NAV basis due to unfavorable allocation and selection effect. Stock selection within the industrials, financials and real estate sectors contributed the most to performance. The health care, information technology and consumer discretionary sectors were the greatest detractors. Key contributors to the quarter's performance were Tenet Healthcare Corp. (THC), Monolithic Power Systems, Inc. (MPWR) and Pinterest, Inc. (PINS) Within healthcare services, owning a non-benchmark position in Tenet Healthcare Corp. (THC) proved favorable during the quarter. Shares advanced following a strong 1Q24 earnings report at the beginning of the quarter, highlighting an earnings per share and revenue beat well above expectations. An overweight position in Monolithic Power Systems, Inc. (MWPR) generated strong results. Shares advanced throughout the period following its strong 1Q24 earnings beat and solid guidance driven by its AI exposure and the diversification of its customer base. An overweight position in Pinterest, Inc. (PINS) added value during the period. The stock price advanced following the company's impressive quarterly results with its core platform business accelerating. Key detractors for the quarter were Charles River Laboratories International, Inc., Builders FirstSource, Inc. and Viking Therapeutics, Inc. Owning a non-benchmark position in Charles River Laboratories International, Inc. (CRL) detracted from results. The CRL share price declined due to a continued deceleration in revenue, tight profit margins and higher taxes. Owning a non-benchmark position in Builders FirstSource, Inc. (BLDR) weighed on performance during the period. While BLDR had a strong start to 2024, the market for multi-family housing remains weak. Higher mortgage rates, increased competition and expectation for these headwinds to persist also caused investors to take pause. A non-benchmark position in Viking Therapeutics, Inc. (VKTX) detracted from performance during the quarter. Despite significant positive data coming from its Phase 2 VOYAGE study for its drug, Rezdiffra to treat nonalcoholic steatohepatitis (NASH), and its strong competitive position within the NASH market, shares traded off due to concerns regarding the timing of its partnerships in the large Obesity and NASH markets. The resilience of the U.S. economy persists. Despite the effects from continued monetary tightness, economic growth remains strong, driven by gains in payrolls and productivity. Consumer spending is stable, supported by a significant increase in household net worth. However, consumer confidence remains below average due to the lasting impact of higher prices. While inflation has fallen to more manageable levels, concerns about overheating persist. While core inflation has declined for 14 consecutive months, core services prices are still rising. A downshift in growth and loosening of the labor market may be necessary to maintain inflation near the Fed's 2% target. This does not imply significant economic weakness, but it may keep rates higher for longer than expected. Strong earnings momentum - which could continue through the year - has supported U.S. stocks. The growth and quality of earnings have justified expensive stock valuations, particularly in mega-cap technology stocks. However, we expect the rally to broaden, with value-oriented and smaller cap segments taking the lead. The economic soft landing and anticipated rate cuts should create favorable conditions for U.S. stocks, despite potential near-term pullbacks. Companies mentioned in this report - percentage of portfolio investments, as of 06/30/24: Tenet Healthcare Corp. 1.59%, Monolithic Power Systems, Inc. 2.66%, Pinterest, Inc. 2.05%, Charles River Laboratories International, Inc. 1.62%, Builders FirstSource, Inc. 0.92% and Viking Therapeutics, Inc. 0.48%; 0% indicates that the security is no longer in the portfolio. Portfolio holdings are subject to daily change. Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.