N-CSR 1 tm232302d16_ncsr.htm N-CSR

 

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

 

Form N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF 

REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number: 811-08319

 

Voya Partners, Inc.

(Exact name of registrant as specified in charter)

 

7337 East Doubletree Ranch Road, Suite 100, Scottsdale, AZ   85258
(Address of principal executive offices)   (Zip code)

 

The Corporation Trust Company, 1209 Orange Street, Wilmington, DE 19801

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 1-800-262-3862

 

Date of fiscal year end: December 31

 

Date of reporting period: December 31, 2022

 

 

 

 

 

 

Item 1. Reports to Stockholders.

 

(a)The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1):

 

Voya Investment Management

Annual Report

December 31, 2022

Classes ADV, I, R6, S and S2

Voya Partners, Inc.

Voya Global Bond Portfolio

Voya International High Dividend Low Volatility Portfolio

VY® American Century Small-Mid Cap Value Portfolio

VY® Baron Growth Portfolio

VY® Columbia Contrarian Core Portfolio

VY® Columbia Small Cap Value II Portfolio

VY® Invesco Comstock Portfolio

VY® Invesco Equity and Income Portfolio

VY® Invesco Global Portfolio

VY® JPMorgan Mid Cap Value Portfolio

VY® T. Rowe Price Diversified Mid Cap Growth Portfolio

VY® T. Rowe Price Growth Equity Portfolio

As permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of each portfolio's annual and semi-annual shareholder reports, like this annual report, are not sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you need not take any action. You may elect to receive shareholder reports and other communications from your insurance carrier electronically by contacting them directly.

You may elect to receive all future reports in paper free of charge. If you received this document in the mail, please follow the instructions provided to elect to continue receiving paper copies of your shareholder reports. You can inform us that you wish to continue receiving paper copies by calling 1-866-345-5954. Your election to receive reports in paper will apply to all the funds in which you invest.

This report is submitted for general information to shareholders of the Voya mutual funds. It is not authorized for distribution to prospective shareholders unless accompanied or preceded by a prospectus which includes details regarding the funds' investment objectives, risks, charges, expenses and other information. This information should be read carefully.

INVESTMENT MANAGEMENT

voyainvestments.com


TABLE OF CONTENTS

PROXY VOTING INFORMATION

A description of the policies and procedures that the Portfolios use to determine how to vote proxies related to portfolio securities is available: (1) without charge, upon request, by calling Shareholder Services toll-free at (800) 992-0180; (2) on the Portfolios' website at www.voyainvestments.com; and (3) on the U.S. Securities and Exchange Commission's ("SEC's") website at www.sec.gov. Information regarding how the Portfolios voted proxies related to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Portfolios' website at www.voyainvestments.com and on the SEC's website at www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS

The Portfolios file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form NPORT-P. The Portfolios' Forms NPORT-P are available on the SEC's website at www.sec.gov. Each Portfolio's complete schedule of portfolio holdings is available at: www.voyainvestments.com and without charge upon request from the Portfolio by calling Shareholder Services toll-free at (800) 992-0180.


BENCHMARK DESCRIPTIONS

Index

 

Description

 

Bloomberg Global Aggregate Index

 

Provides a broad-based measure of the global investment-grade fixed-rate debt markets.

 

Bloomberg U.S. Government/Credit Index

 

An index made up of the Barclays Government and Credit indices, including securities issued by the U.S. government and its agencies and publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity and quality requirements.

 

MSCI All Country World IndexSM

 

A free-float adjusted market capitalization index that is designed to measure equity performance in the global developed and emerging markets.

 

MSCI EAFE® Value Index ("MSCI EAFE® Value")

 

The index captures large and mid cap securities exhibiting overall value style characteristics across Developed Markets countries around the world, excluding the U.S. and Canada.

 

Russell 1000® Index

 

A comprehensive large-cap index measuring the performance of the largest 1,000 U.S. incorporated companies.

 

Russell 1000® Growth Index

 

Measures the performance of the 1,000 largest companies in the Russell 3000® Index with higher price-to-book ratios and higher forecasted growth.

 

Russell 1000® Value Index

 

An index that measures the performance of those Russell 1000® securities with lower price-to-book ratios and lower forecasted growth values.

 

Russell 2000® Growth Index

 

An index that measures the performance of securities of smaller U.S. companies with greater than average growth orientation.

 

Russell 2000® Value Index

 

An index that measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower than forecasted growth values.

 

Russell 2500TM Growth Index

 

Measures the performance of the small- to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500TM Index companies with higher price-to-book ratios and higher forecasted growth values.

 

Russell 2500TM Value Index

 

Measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values.

 

Russell Midcap® Growth Index

 

An index that measures the performance of those companies included in the Russell Midcap® Index with relatively higher price-to-book ratios and higher forecasted growth values.

 

Russell Midcap® Value Index

 

Measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values.

 

S&P 500® Index

 

An index that measures the performance of securities of approximately 500 large-capitalization companies whose securities are traded on major U.S. stock markets.

 

S&P MidCap 400® Index

 

An index that measures the performance of the mid-size company segment of the U.S. market.

 

S&P SmallCap 600® Value Index

 

Measures the performance of those S&P SmallCap 600® Index companies with lower price-to-book ratios.

 


1


VOYA GLOBAL BOND PORTFOLIO

PORTFOLIO MANAGERS' REPORT

Voya Global Bond Portfolio (the "Portfolio") seeks to maximize total return through a combination of current income and capital appreciation. The Portfolio is managed by Sean Banai, CFA, and Brian Timberlake, Ph.D., CFA, Portfolio Managers of Voya Investment Management Co. LLC ("Voya IM") — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class S shares provided a total return of -18.49% compared to the Bloomberg Global Aggregate Index ("Index"), which returned -16.25% for the same period.

Portfolio Specifics: The Portfolio underperformed the Index for the period. Asset allocation and currency positioning detracted, while duration and yield curve positioning added to performance.

2022 marked one of the worst years in global bond market performance, as measured by the Index. Rates catapulted higher over the course of 2022, led by the United States' persistently higher inflation, compounded by energy price spikes from the Russia and Ukraine conflict brought yields back to levels not witnessed since prior to Covid. The 10-year US Treasury yield reached nearly 4.25% in October, before retracing to 3.90% by year-end. The one country insulated from these moves was Japan where the Bank of Japan (BoJ) remained committed to yield curve control to anchor their bond yields for most of the year. The rate sell-off, continued to challenge non-US dollar currencies with the dollar commanding further strength. A peak in inflation data and worries of a recession in the United States led the market to believe the end of the US Federal Reserve hiking cycle was in sight, spurring a modest recovery in bond markets and an unwinding of some of the dollar strength in the final quarter of the year.

Higher interest rates and higher bond volatility was an unwelcome challenge in 2022. Non-government sectors struggled and broadly trailed global Treasuries for the year. Emerging markets, particularly hard currency markets, which serve the dual challenge of aggressive global central banks and elevated levels of geopolitical risk stemming from the Russian invasion of Ukraine and Covid restrictions in place for much of the year in China.

Asset allocation for the entire period detracted from performance, with investments in EM, including positions in Russia and Ukraine, detracting in the first half of the year. Higher volatility and elevated geopolitical risks on the heels of the Russia invasion of Ukraine dragged on performance and also impacted contributions in currency markets, where the flight to the US dollar adversely impacted performance. Later in the year, securitized credit investments weighed on performance, as concerns on the outlook for commercial real estate held back the commercial mortgage-backed securities sector. Duration and yield curve positioning added to performance. The Portfolio was tactically defensive early in the year which added as rates rose.

Current Strategy and Outlook: We believe easing inflation pressures in the United States should allow the Fed to halt the rapid rate rise, but we do not expect rate cuts in the United States until labor markets rebalance. The cumulative effects of central bank tightening, disruption in the energy supply and the fading impact of Covid stimulus will push global growth below potential and threaten recession in several key economies — particularly in the Eurozone. While the probability of a US recession is high, we do not anticipate that economic growth will drop suddenly. This is in part because we do not see significant imbalances in either the corporate or consumer segments. Corporate balance sheets are merely cooling from their very strong positions, and consumer spending is still supported by excess savings left over from various Covid stimulus packages. Meanwhile, broad global central bank policy will become less synchronized as we near the end of hiking cycles driven by divergence in growth and inflation. In the US, the downward trajectory of inflation will allow the Fed to pause once convinced that nominal rates are above the forward expected level of inflation. Meanwhile, the European Central Bank remains firmly committed to their inflation target which may require further rate hikes even after the Fed is done.

With a peak in Fed Funds, we expect US dollar strength to further unwind. The US dollar has shown persistent strength since the Covid pandemic. Initially supported by a 'flight to quality' in the early days of the pandemic, and then more recently reflecting the aggressive rate hikes implemented by the Fed. While we expect the US dollar to retain its status as a safe haven, further, we believe lower moves are likely to occur as the Fed comes to the end of its hiking cycle.

We are cautious of additional imbalances lurking that could disrupt markets. Therefore, the Portfolio remains relatively defensive while we wait for more attractive entry points to increase exposures in the Portfolio.

Geographic Diversification
as of December 31, 2022
(as a percentage of net assets)

United States(1)

   

74.1

%

 

China

   

8.7

%

 

Malaysia

   

1.4

%

 

Spain

   

1.4

%

 

Mexico

   

0.9

%

 

Canada

   

0.9

%

 

Brazil

   

0.7

%

 

France

   

0.7

%

 

United Kingdom

   

0.6

%

 

Thailand

   

0.4

%

 

Countries between 0.0%-0.4%^

   

2.2

%

 

Assets in Excess of Other Liabilities*,**

   

8.0

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments.

**  Includes purchased options.

^  Includes 10 countries, which each represents 0.0%-0.4% of net assets.

(1)  Includes 9.5% total investment in Voya Emerging Markets Hard Currency Debt Fund, Voya High Yield Bond Fund and Voya VACS Series EMCD Fund.

Portfolio holdings are subject to change daily.

Top Ten Holdings
as of December 31, 2022*
(as a percentage of net assets)

Voya High Yield Bond Fund — Class P

   

3.9

%

 

China Government Bond, 3.250%, 11/22/28

   

3.7

%

 

Voya VACS Series EMCD Fund

   

3.0

%

 
Voya Emerging Markets Hard Currency Debt
Fund — Class P
   

2.6

%

 
Uniform Mortgage-Backed Securities,
2.000%, 01/15/53
   

2.5

%

 
Uniform Mortgage-Backed Securities,
3.500%, 01/15/53
   

2.2

%

 
Uniform Mortgage-Backed Securities,
2.500%, 01/15/53
   

2.1

%

 

Ginnie Mae, 3.000%, 01/15/53

   

2.1

%

 
Uniform Mortgage-Backed Securities,
4.000%, 01/15/53
   

2.0

%

 

China Government Bond, 2.850%, 06/04/27

   

1.7

%

 

*  Excludes short-term investments.

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.


2


PORTFOLIO MANAGERS' REPORT

VOYA GLOBAL BOND PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 
   

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

-18.75

%

   

-2.61

%

   

-0.85

%

 

Class I

   

-18.35

%

   

-2.13

%

   

-0.35

%

 

Class S

   

-18.49

%

   

-2.37

%

   

-0.60

%

 

Blooomberg Global Aggregate Index

   

-16.25

%

   

-1.66

%

   

-0.44

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of Voya Global Bond Portfolio against the index indicated. The index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which

have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.


3


VOYA INTERNATIONAL HIGH DIVIDEND LOW VOLATILITY PORTFOLIO

PORTFOLIO MANAGERS' REPORT

Voya International High Dividend Low Volatility Portfolio (the "Portfolio") seeks maximum total return. The Portfolio is managed by Vincent Costa, CFA, Kai Yee Wong, Peg DiOrio, CFA, and Steve Wetter, Portfolio Managers of Voya Investment Management Co. LLC ("VIM") — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class I shares provided a total return of -8.90% compared to the MSCI EAFE® Value Index (the "Index" or "MSCI EAFE® Value"), which returned -5.58% for the same period.

Portfolio Specifics: For the reporting period, the Portfolio underperformed the Index. In terms of the Portfolio's performance, the portfolio's lower beta and higher dividend positioning contributed while the core model detracted. The portfolio's active industry exposures and active stock betas detracted as well.

On the regional level, stock selection within Japan was additive. By contrast, stock selection within the European region had the largest negative impact on performance.

On the sector level, stock selection was strongest in the communication services sector and the underweight and stock selection in consumer discretionary had a positive impact on performance. Conversely, the largest detractor from performance came from stock selection in the materials sector followed by selection in industrials and energy. At the individual stock level, not owning benchmark stock in Toyota Motor Corp. and overweight positions in Rio Tinto Ltd. and BAE Systems plc were among the key contributors for the period. The key detractors for the period included the underweight positions in Shell plc, TotalEnergies SE and BHP Group Ltd.

Current Strategy and Outlook: This is an actively managed international quantitative equity strategy that seeks to generate higher dividend income and total returns, with lower volatility and better downside capture, than the benchmark. The investment process seeks to create a universe of sustainable dividend-paying stocks and utilizes fundamentally driven sector-specific alpha models to identify the most attractive stocks within each region-sector. The Portfolio is then optimized to achieve its dividend, alpha and volatility objectives.

Geographic Diversification
as of December 31, 2022
(as a percentage of net assets)

Japan

   

23.7

%

 

United Kingdom

   

15.6

%

 

Switzerland

   

9.1

%

 

Australia

   

8.9

%

 

Germany

   

7.1

%

 

France

   

6.6

%

 

Spain

   

5.0

%

 

Hong Kong

   

4.5

%

 

Netherlands

   

3.9

%

 

Italy

   

3.9

%

 

Countries between 0.2%-2.4%^

   

10.2

%

 

Assets in Excess of Other Liabilities*

   

1.5

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments and exchange-traded funds.

^  Includes 10 countries, which each represents 0.2%-2.4% of net assets.

Portfolio holdings are subject to change daily.

Top Ten Holdings
as of December 31, 2022
(as a percentage of net assets)

Novartis AG

   

3.2

%

 

HSBC Holdings PLC

   

2.3

%

 
BP PLC    

2.0

%

 

Sanofi

   

1.8

%

 

British American Tobacco PLC

   

1.7

%

 

Mitsubishi UFJ Financial Group, Inc.

   

1.7

%

 

Allianz SE

   

1.7

%

 

Zurich Insurance Group AG

   

1.6

%

 

Rio Tinto Ltd.

   

1.5

%

 

Sumitomo Mitsui Financial Group, Inc.

   

1.5

%

 

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.


4


PORTFOLIO MANAGERS' REPORT

VOYA INTERNATIONAL HIGH DIVIDEND LOW VOLATILITY PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 

 

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

-9.34

%

   

-0.35

%

   

2.63

%

 

Class I

   

-8.90

%

   

0.13

%

   

3.14

%

 

Class S

   

-9.07

%

   

-0.11

%

   

2.89

%

 

Class S2

   

-9.30

%

   

-0.27

%

   

2.73

%

 

MSCI EAFE® Value

   

-5.58

%

   

0.17

%

   

3.51

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of Voya International High Dividend Low Volatility Portfolio against the index indicated. The index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.

Prior to May 1, 2019, the Portfolio was managed by a different sub-adviser. The Portfolio's performance information for these periods reflects returns achieved by different sub-advisers.


5


VY® AMERICAN CENTURY SMALL-MID CAP VALUE PORTFOLIO

PORTFOLIO MANAGERS' REPORT

VY® American Century Small-Mid Cap Value Portfolio (the "Portfolio") seeks long-term capital growth. Income is a secondary objective. The Portfolio is managed by a team of portfolio managers comprised of Jeff John, CFA, Vice President and Ryan Cope, CFA (responsible for the management of the Small Cap Value portion of the Portfolio) and Kevin Toney, CFA, Co-Chief Investment Officer — Global Value Equity and Senior Vice President, CFA, Senior Vice President and Co-Chief Investment Officer — Global Value Equity and Senior Vice President, Michael Liss, CFA, CPA and Vice President, and Brian Woglom, CFA, Vice President (responsible for the Mid Cap Value portion of the Portfolio) (each a "Sleeve"), Portfolio Managers of American Century Investment Management, Inc. — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class S shares provided a total return of -5.60% compared to the Russell 2500TM Value Index and the S&P SmallCap 600® Value Index, which returned -13.08% and -11.04%, respectively, for the same period.

Portfolio Specifics: Broad U.S. equity markets fell on concerns that persistently high inflation and rising interest rates may derail the economic expansion and weaken corporate profits. Market declines were broad based. Mid-cap stocks outperformed large- and small-cap stocks, however, as measured by the Russell indices. Value stocks outperformed growth.

The Mid Cap Value sleeve outperformed its benchmark, the Russell 2500TM Value Index, for the year. Stock selection in the health care sector lifted relative performance, aided by investments in the health care providers and services industry. Additionally, security selection in the IT services industry boosted results in the information technology sector. Not owning several benchmark names in the semiconductors and semiconductor equipment industry also contributed to relative performance. On a negative note, stock selection and an underweight in the energy sector hindered relative performance. The Portfolio did not own a number of oil and gas exploration stocks that were strong contributors to the benchmark index.

The Small Cap Value sleeve outperformed its benchmark, the Russell 2500TM Value Index. An underweight and stock selection in the health care sector lifted relative performance. In particular, the Portfolio benefited from its lack of exposure to biotechnology stocks that were notable detractors from the benchmark index. Stock selection in industrials also contributed, assisted by investments in the building products and construction and engineering industries. By contrast, an underweight and stock selection in the energy sector detracted from relative performance as the portfolio did not own several oil and gas-related holdings that were strong contributors to benchmark performance.

The blended portfolio had negative performance but outperformed its benchmark, the Russell 2500TM Value Index. Stock selection lifted relative performance, especially in the health care, financials and industrials sectors. Among individual holdings, Conagra Brands was a prominent contributor. This packaged-food company benefited from its strong competitive positioning, which enabled it to raise prices to offset higher costs. We continue to own Conagra, as we like its dividend yield and defensive nature. Zimmer Biomet Holdings, another contributor, is a medical device company that has historically exhibited high returns on capital and holds leading market shares in orthopedics. It outperformed on continued strong orthopedics volume trends.

On a negative note, an underweight and stock selection in energy detracted from the blended portfolio's relative performance. Stock selection in materials also dampened relative performance, as the portfolio lacked exposure to a number of metal and mining stocks that were strong performers for the index. Among individual holdings, Avaya Holdings was a detractor, as the provider of telephone service software reported disappointing quarterly performance. In addition to missing earnings, the company lowered guidance due to lost business in Russia and Ukraine and headwinds in the transition to a subscription model. We exited the position. T. Rowe Price Group was another individual detractor. Shares of this asset management firm declined on lower equity markets and reduced assets under management. We continue to hold the stock given our confidence in the management team and business model.

Current Strategy and Outlook: We continue to build the Portfolio bottom-up through our fundamental research, seeking higher quality, midsize companies temporarily selling at a discount to fair value.

Attractive valuations in consumer staples. We hold select companies in the consumer staples sector that we believe are trading at a discount to their intrinsic value. While input costs have risen in this inflationary environment, many consumer staples companies have been able to improve efficiencies and pass along rising costs through pricing without significantly impacting demand. We think these steps may lead to a positive inflection for select companies in 2023.

Opportunities in health care. Our research has led us to several health care stocks that we think offer compelling risk/reward profiles. We consider health care noncyclical because demand is less impacted by the economy's performance. Therefore, in a slowing economy, we think patients seeking elective procedures after the COVID-19 disruption should provide support to medical device companies and service providers that are working through patient backlogs.

Navigating the financials sector. We have identified many companies in the financials sector that meet our investment criteria, particularly in the capital markets, banking and insurance industries. We expect the Fed to maintain higher interest rates as it continues its inflation fight in 2023, which could act as a tailwind for interest rate-sensitive financials that underearned when rates were unusually low. We remain focused on companies that, in our view, offer higher relative returns on assets, stronger capital levels, lower credit risk and management teams focused on returns and building competitive advantages.

Fewer opportunities in consumer discretionary. Our portfolio is underweight in the consumer discretionary because it has been difficult for us to find higher-quality consumer discretionary companies with durable business models.

Higher-quality stocks may offer resilience. As we enter 2023, we continue to face challenging macroeconomic and geopolitical conditions. In the event of a recession, we believe companies with low debt and steady revenues may be better positioned to grow and maintain their competitive edge despite economic headwinds.

Sector Diversification
as of December 31, 2022
(as a percentage of net assets)

Financials

   

22.4

%

 

Industrials

   

15.6

%

 

Health Care

   

10.8

%

 

Information Technology

   

8.8

%

 

Consumer Discretionary

   

8.4

%

 

Real Estate

   

7.5

%

 

Utilities

   

6.7

%

 

Consumer Staples

   

6.3

%

 

Materials

   

5.1

%

 

Energy

   

3.7

%

 

Communication Services

   

2.2

%

 

Exchange-Traded Funds

   

0.9

%

 

Assets in Excess of Other Liabilities*

   

1.6

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments.

Portfolio holdings are subject to change daily.

Top Ten Holdings
as of December 31, 2022*
(as a percentage of net assets)

Zimmer Biomet Holdings, Inc.

   

2.2

%

 

Northern Trust Corp.

   

2.0

%

 

Bank of New York Mellon Corp.

   

1.8

%

 

Edison International

   

1.5

%

 

Allstate Corp.

   

1.5

%

 

Spire, Inc.

   

1.4

%

 

Koninklijke Ahold Delhaize NV

   

1.3

%

 

Oshkosh Corp.

   

1.3

%

 

Conagra Brands, Inc.

   

1.3

%

 

Truist Financial Corp.

   

1.2

%

 

*  Excludes short-term investments.

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invt directly in n index.


6


PORTFOLIO MANAGERS' REPORT

VY® AMERICAN CENTURY SMALL-MID CAP VALUE PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 

 

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

-5.85

%

   

6.57

%

   

10.52

%

 

Class I

   

-5.38

%

   

7.10

%

   

11.07

%

 

Class S

   

-5.60

%

   

6.85

%

   

10.79

%

 

Class S2

   

-5.77

%

   

6.67

%

   

10.62

%

 

Russell 2500TM Value Index

   

-13.08

%

   

4.75

%

   

8.93

%

 

S&P SmallCap 600® Value Index

   

-11.04

%

   

5.38

%

   

10.33

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of VY® American Century Small-Mid Cap Value Portfolio against the indices indicated. An index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the

Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.


7


VY® BARON GROWTH PORTFOLIO

PORTFOLIO MANAGERS' REPORT

VY® Baron Growth Portfolio (the "Portfolio") seeks capital appreciation. The Portfolio is managed by Ronald Baron, Founder, Chief Executive Officer, Chief Investment Officer, Chairman, and Portfolio Manager and Neal Rosenberg, Portfolio Manager of BAMCO, Inc. — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class S shares provided a total return of -23.69% compared to the Russell 2000® Growth Index and the Russell 2500TM Growth Index, which returned -26.36% and -26.21%, respectively, for the same period.

Portfolio Specifics: 2022 was the worst year for the U.S. equity market since the global financial crisis of 2008. After most major indexes reached consecutive record highs in 2021, few predicted the stock market selloff in 2022. But then a sudden and sustained surge in inflation spurred the Federal Reserve to embark on the most aggressive rate-hike path in decades, sending stocks tumbling through much of the year. The Russell 2000® Growth Index declined 26.36%.

Shares of Iridium Communications Inc., a leading mobile voice and data communications services vendor offering global coverage via satellite, increased. After years of investments in its newer constellation, the company reached a capex "holiday," embarking on a robust shareholder return program. In addition, Iridium beat Street expectations against its core market opportunity while generating substantial profits. Lastly, the company expects to launch a new satellite-to-cellular service that can offer material upside to its core market.

Arch Capital Group Ltd. is a specialty insurance company based in Bermuda. Shares increased due to favorable pricing trends in the P&C insurance market. The stock also benefited from inclusion in the S&P 500 index, which prompted buying from passive funds. We retain conviction due to Arch's strong management team and our expectation of strong growth in earnings and book value.

Shares of specialty insurer Kinsale Capital Group, Inc. increased on favorable market conditions, with rising premium rates and more business shifting from the standard lines market to the excess and surplus lines market where Kinsale operates. We continue to own the stock because we believe Kinsale is well managed and has a long runway for growth in an attractive segment of the insurance market.

Choice Hotels International, Inc. is a global hotel franchisor. Shares declined due to investor concerns about the negative impact of a possible recession. We remain shareholders. Choice generated strong results during the year due to growth in revenue per available room in more accretive segments enhanced by its recent Radisson acquisition, work arrangement flexibility, and the return of business travel. Choice's strong balance sheet positions it to withstand a slowdown should one occur.

Global ski resort company Vail Resorts, Inc. detracted due to investor concerns that a potential recession would negatively impact season pass sales and earnings. We retain conviction. Season pass sales increased at a mid-single-digit rate. The company used its cash flow to invest in improving its resorts and ensure that its locations were fully staffed and able to provide high-level service. Its strong balance sheet should carry Vail through a slowdown should one occur.

Shares of MSCI, Inc., a leading provider of investment decision support tools, detracted from performance. The company put up solid earnings results throughout the year but does have meaningful exposure to global equity market performance. There was no material negative company-specific news that hurt the stock. Instead, MSCI largely got caught up in the broader market volatility. We retain long-term conviction as MSCI owns strong, "all weather" franchises and remains well positioned to benefit from numerous secular tailwinds in the investment community.

Relative Performance: The Portfolio outperformed the Russell 2000® Growth Index in 2022 as favorable stock selection and tailwinds from style biases offset negative impacts from differences in sector weights.

Investments in Financials, Communication Services, Information Technology (IT), and Real Estate accounted for most of the relative gains. Stock selection in Financials drove much of the outperformance, as specialty insurers Arch Capital Group Ltd. and Kinsale Capital Group, Inc. performed well after reporting above-consensus financial results as market conditions and pricing trends remained favorable. Financial data providers FactSet Research Systems, Inc. and MSCI, Inc. outperformed on solid quarterly results and strong underlying business trends. Strength in Communication Services came from Iridium Communications Inc., the top contributor on an absolute basis. Performance in IT and Real Estate was bolstered by syndicated research provider Gartner, Inc. and Gaming and Leisure Properties, Inc., respectively. Gartner's stock outperformed on financial results that consistently exceeded Street estimates. Gaming and Leisure outperformed as investors viewed the stock as a safe haven in an uncertain macro environment.

Investments in Health Care and Industrials together with lack of exposure to the better performing Energy and Consumer Staples sectors weighed the most on relative results. Adverse stock selection in Health Care came from pharmaceutical packaging manufacturer West Pharmaceutical Services, Inc. and veterinary diagnostics leader IDEXX Laboratories, Inc. These companies were among the largest detractors as multiple compression has been particularly acute for pandemic "winners" given challenging growth comparisons and normalizing trends. Within Industrials, lower exposure to this better performing sector and the underperformance of composite decking manufacturer Trex Company, Inc. hampered performance. Trex's share price weakness stemmed primarily from valuation multiple compression, as investors became concerned that demand for the company's products would slow following two years of elevated growth.

Current Strategy and Outlook: As long-term investors in what we view as high-quality growth stocks, we are always actively looking for companies with open-ended growth opportunities, competitive advantages, and what we believe to be excellent management, at attractive valuations. We continue to position the portfolio to benefit from what we believe to be strong, long-term growth opportunities.

Sector Diversification
as of December 31, 2022
(as a percentage of net assets)

Financials

   

35.0

%

 

Consumer Discretionary

   

20.8

%

 

Information Technology

   

13.5

%

 

Health Care

   

11.1

%

 

Industrials

   

7.0

%

 

Real Estate

   

6.6

%

 

Communication Services

   

5.6

%

 

Assets in Excess of Other Liabilities*

   

0.4

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments.

Portfolio holdings are subject to change daily.

Top Ten Holdings
as of December 31, 2022
(as a percentage of net assets)

MSCI, Inc. — Class A

   

10.4

%

 

Gartner, Inc.

   

7.6

%

 

Vail Resorts, Inc.

   

7.5

%

 

Choice Hotels International, Inc.

   

6.8

%

 

Factset Research Systems, Inc.

   

6.5

%

 

Iridium Communications, Inc.

   

5.6

%

 

CoStar Group, Inc.

   

5.6

%

 

Arch Capital Group Ltd.

   

5.3

%

 

Kinsale Capital Group, Inc.

   

3.9

%

 

Gaming and Leisure Properties, Inc.

   

3.8

%

 

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.


8


PORTFOLIO MANAGERS' REPORT

VY® BARON GROWTH PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 
   

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

-23.90

%

   

10.45

%

   

11.67

%

 

Class I

   

-23.50

%

   

11.00

%

   

12.23

%

 

Class R6(1)

   

-23.50

%

   

11.01

%

   

12.23

%

 

Class S

   

-23.69

%

   

10.72

%

   

11.95

%

 

Class S2

   

-23.79

%

   

10.56

%

   

11.78

%

 

Russell 2000® Growth Index

   

-26.36

%

   

3.51

%

   

9.20

%

 

Russell 2500TM Growth Index

   

-26.21

%

   

5.97

%

   

10.62

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of VY® Baron Growth Portfolio against the indices indicated. An index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and

expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.

(1)  Class R6 incepted on May 3, 2016. The Class R6 shares performance shown for the period prior to their inception date is the performance of Class I shares without adjustment for any differences in the expenses between the two classes. If adjusted for such differences, returns would be different.


9


VY® COLUMBIA CONTRARIAN CORE PORTFOLIO

PORTFOLIO MANAGERS' REPORT

VY® Columbia Contrarian Core Portfolio (the "Portfolio") seeks total return consisting of long-term capital appreciation and current income. The Portfolio is managed by Guy W. Pope, CFA, Senior Portfolio Manager and Head of Contrarian Core Strategy with Columbia Management Investment Advisers, LLC — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class S shares provided a total return of -18.64% compared to the Russell 1000® Index, which returned -19.13% for the same period.

Portfolio Specifics: For calendar year 2022, the Portfolio outperformed its benchmark, the Russell 1000® Index, which returned -19.13% for the year. The relative outperformance was driven primarily by strong stock selection, most notably within heath care, followed by consumer staples, information technology and communication services. Allocation also contributed positively to relative performance, mainly due to the portfolio's largest underweight, which was to consumer discretionary and, secondarily, to the portfolio's small cash weight, which provided a boost in a challenging environment for equities. Being overweight energy also helped relative returns, as it was by far the benchmark's best performing sector with a return of over +64% for the year. The largest detractor in terms of allocation was the overweight to communication services, which was the worst performing sector with a return of approximately -40%.

2022 was an extremely volatile and challenging year with US equities (as measured by major indices such as the S&P 500 Index and the Russell 1000 Index) posting their worst annual performance since the global financial crisis in 2008. This was especially jolting on the heels of a long bull market, culminating in a surprisingly strong year in 2020 after global markets sold off in March due to the pandemic and then equities soaring to record highs in 2021. The year of 2022 stands in stark contrast with equity returns being driven largely by expectations around the course of inflation and the actions of the US Federal Reserve, which hiked rates seven times by a combined 4.25% over the year. Despite all of the unease surrounding the war in Ukraine among other geopolitical tensions, higher interest rates and the highest inflation in decades, it was an environment that tends to be conducive to the team's contrarian investment process. The strategy's contrarian approach to investing starts with trying to identify pessimism. Pessimism creates low and out-of-favor stock prices. Over time, we believe this group of stocks offers excellent opportunities for investors and environments such as we experienced in 2022, while painful, typically create good investment opportunities for our approach.

Top individual contributors to performance for the year included Raytheon, Vertex, Eli Lilly and Sysco. Raytheon has executed well with a strong mix in its defense business and Aero segment. Eli Lilly and Vertex led the portfolio's strong stock selection in health care on the strength of promising new therapies and robust product pipelines due to their leading research & development engines. Sysco is coming out of the challenging COVID stay -at-home environment having strengthened its leadership position as the top supplier to restaurants and the food service industry.

On the other side, Amazon declined through most of the year with key disappointments being slowing growth for Amazon Web Services (AWS) and guidance for revenue coming in well below expectations. It ended up being a disappointing year, but the company is still distinguished by its innovative culture, massive customer base and e-commerce tailwinds. Uber was also among top detractors during the volatile year, despite strong profitability offsetting softer bookings. Uber's ride share platform and its Eats (takeout delivery) platform both remain dominant players in global market share. Finally, the timing on Snap being added to the portfolio early in the year made it a detractor as advertising revenue declined severely, the company downgraded its guidance significantly and its share price declined precipitously.

Current Strategy and Outlook: Concerns for financial markets are still being led by inflation and the pace and timing of interest rate hikes by the Fed. Geopolitical concerns, particularly the ongoing Russian invasion of Ukraine and lingering concerns about China, have increased uncertainty for equity investors globally. The long-awaited reopening of China, together with the prospect of the Fed stopping its rate-hiking cycle and getting inflation under control, are giving some hope for a return to normal though.

As of the beginning of 2023, the Portfolio's largest overweight is to communication services, with smaller overweights to information technology, health care, materials and energy. The largest underweight is to consumer discretionary, followed by underweights to real estate and financials. We continue to seek opportunities in the market, focusing on "stalwarts" — companies that can continue to grow earnings in a potentially difficult economic environment.

Sector Diversification
as of December 31, 2022
(as a percentage of net assets)

Information Technology

   

26.4

%

 

Health Care

   

15.6

%

 

Communication Services

   

11.5

%

 

Financials

   

10.6

%

 

Industrials

   

8.2

%

 

Consumer Staples

   

7.4

%

 

Consumer Discretionary

   

6.6

%

 

Energy

   

5.4

%

 

Utilities

   

2.8

%

 

Materials

   

2.5

%

 

Real Estate

   

1.6

%

 

Assets in Excess of Other Liabilities*

   

1.4

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments.

Portfolio holdings are subject to change daily.

Top Ten Holdings
as of December 31, 2022*
(as a percentage of net assets)

Microsoft Corp.

   

6.5

%

 

Apple, Inc.

   

5.3

%

 

Johnson & Johnson

   

3.6

%

 

Berkshire Hathaway, Inc. — Class B

   

3.3

%

 

Amazon.com, Inc.

   

2.9

%

 

Chevron Corp.

   

2.7

%

 

Procter & Gamble Co.

   

2.7

%

 

Eli Lilly & Co.

   

2.4

%

 

Raytheon Technologies Corp.

   

2.2

%

 

Wells Fargo & Co.

   

1.9

%

 

*  Excludes short-term investments.

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.


10


PORTFOLIO MANAGERS' REPORT

VY® COLUMBIA CONTRARIAN CORE PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 

 

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

-18.85

%

   

7.89

%

   

11.53

%

 

Class I

   

-18.51

%

   

8.40

%

   

12.09

%

 

Class S

   

-18.64

%

   

8.20

%

   

11.83

%

 

Russell 1000® Index

   

-19.13

%

   

9.13

%

   

12.37

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of VY® Columbia Contrarian Core Portfolio against the index indicated. The index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and

expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.

Prior to April 30, 2013, the Portfolio was managed by a different sub-adviser. The Portfolio's performance information for these periods reflects returns achieved by different sub-advisers.


11


VY® COLUMBIA SMALL CAP VALUE II PORTFOLIO

PORTFOLIO MANAGERS' REPORT

VY® Columbia Small Cap Value II Portfolio (the "Portfolio") seeks long-term growth of capital. The Portfolio is managed by Christian K. Stadlinger, Ph.D., CFA, and Jarl Ginsberg, CFA, CAIA, Portfolio Managers, of Columbia Management Investment Advisers, LLC — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class I shares provided a total return of -13.67% compared to the Russell 2000® Value Index, which returned -14.48% for the same period.

Portfolio Specifics: The Portfolio outperformed its benchmark, the Russell 2000® Value Index, which returned -14.48% during the period. Outperformance was driven primarily by strong stock selection within materials, communication services, and healthcare. Security selection within financials and information technology offset some of these relative results. Sector allocation also contributed to outperformance, helped by an underweight to communication services and healthcare (which were the two worst performing sectors in the index).

In general, 2022 was a very challenging year for investors as US equities (as measured by the S&P 500) posted their worst annual performance since the global financial crisis in 2008. In stark contrast to the previous year, which saw equities accelerate to record highs, 2022 saw a downward trajectory. In our opinion, results were driven largely by expectations around the course of inflation and the actions of the US Federal Reserve, which hiked rates seven times by a combined 4.25% over the year. Despite all of the unease surrounding higher rates, inflation, and the impact these may have on economic growth, we stuck to our long-standing investment process of searching for value companies that are exhibiting signs of early improvement and upward inflection. This helped us navigate this market and generate relative outperformance. We have used this same investment process since the strategy's inception, and it has helped us navigate the portfolio through all types of past market environments as well.

Top individual contributors to performance included many of our exploration and production companies in the energy sector, particularly Ovintiv, Antero Resources, and Matador Resources, which all benefitted from the rise in oil prices during the year. Within communication services, our position in television broadcasting and digital media company Nexstar Media was an outperformer. Shares rose as the company continues to execute well and was buoyed by political advertising spending owing to the 2022 election cycle. Underperformers included some of our semiconductor stocks within the technology sector, which were impacted by macroeconomic challenges including supply-chain issues, slowing global demand, and the lockdown in China.

Current Strategy and Outlook: The current market continues to be unpredictable, with high levels of uncertainty and heightened risk. Inflation, supply-chain issues, a hawkish Fed, the continuing war in Ukraine, and China's lockdown have all contributed to volatility and unease, exacerbated by concerns about the health of the U.S. consumer. In light of this uncertain environment, we have been taking a cautious approach and continue to let our time-tested philosophy of searching for value companies exhibiting upward inflection drive our positioning. By nature, this process adapts to changing market conditions as different areas show value and upward inflection through our models. At the end of the year, the portfolio is overweight industrials, materials and consumer staples, while real estate, financials, and health care are the largest underweights.

Sector Diversification
as of December 31, 2022
(as a percentage of net assets)

Financials

   

26.3

%

 

Industrials

   

18.0

%

 

Consumer Discretionary

   

9.6

%

 

Health Care

   

7.0

%

 

Materials

   

6.7

%

 

Real Estate

   

6.1

%

 

Information Technology

   

5.5

%

 

Utilities

   

5.2

%

 

Energy

   

5.1

%

 

Consumer Staples

   

4.4

%

 

Exchange-Traded Funds

   

1.9

%

 

Communication Services

   

1.6

%

 

Assets in Excess of Other Liabilities*

   

2.6

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments.

Portfolio holdings are subject to change daily.

Top Ten Holdings
as of December 31, 2022*
(as a percentage of net assets)

SPDR S&P Biotech ETF

   

1.9

%

 

New Jersey Resources Corp.

   

1.5

%

 

Triton International Ltd.

   

1.5

%

 

Merit Medical Systems, Inc.

   

1.5

%

 

Ameris Bancorp.

   

1.4

%

 

O-I Glass, Inc.

   

1.4

%

 

Portland General Electric Co.

   

1.4

%

 

Hancock Whitney Corp.

   

1.3

%

 

Cathay General Bancorp.

   

1.3

%

 

Bancorp, Inc.

   

1.3

%

 

*  Excludes short-term investments.

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.


12


PORTFOLIO MANAGERS' REPORT

VY® COLUMBIA SMALL CAP VALUE II PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 

 

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

-14.12

%

   

4.32

%

   

9.03

%

 

Class I

   

-13.67

%

   

4.85

%

   

9.58

%

 

Class R6(1)

   

-13.62

%

   

4.88

%

   

9.59

%

 

Class S

   

-13.91

%

   

4.59

%

   

9.30

%

 

Class S2

   

-14.06

%

   

4.42

%

   

9.13

%

 

Russell 2000® Value Index

   

-14.48

%

   

4.13

%

   

8.48

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of VY® Columbia Small Cap Value II Portfolio against the index indicated. The index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.

(1)  Class R6 incepted on May 3, 2016. The Class R6 shares performance shown for the period prior to their inception date is the performance of Class I shares without adjustment for any differences in the expenses between the two classes. If adjusted for such differences, returns would be different.


13


VY® INVESCO COMSTOCK PORTFOLIO

PORTFOLIO MANAGERS' REPORT

VY® Invesco Comstock Portfolio (the "Portfolio") seeks capital growth and income. The Portfolio is managed by Kevin Holt, Co-Lead Portfolio Manager, Devin Armstrong, Co-Lead Portfolio Manager, and James Warwick, each a Portfolio Manager of Invesco Advisers, Inc. — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class S shares provided a total return of 0.38% compared to the Russell 1000® Value Index and the S&P 500® Index, which returned -7.54% and -18.11%, respectively, for the same period.

Portfolio Specifics: The Portfolio outperformed the Russell 1000® Value Index. On the positive side, stock selection and a material overweight in energy was the largest contributor to the fund's relative return. Energy stocks were buoyed by rising oil prices driven by Russia's invasion of Ukraine and continued supply shortages. All of Comstock's holdings within the sector, including Marathon Oil, Devon Energy and Pioneer Resources, were notable contributors to absolute and relative returns. We believe tailwinds for energy companies remain favorable due to limited supply, with no short-term solution. A material underweight in communication services also enhanced relative return, as the sector was the 2nd worst returning sector for the period. Stock selection within healthcare also boosted relative returns. McKesson Corp. and Elevance Health (formerly Anthem) were the top performers. McKesson's stock outperformed as earnings and revenues handily beat expectations and early in the year, management provided upbeat guidance for the rest of 2022.

On the negative side, weak stock selection within information technology detracted from relative performance. Semi-conductor firms QUALCOMM and NXP Semiconductor underperformed as the semi-conductor industry generally underperformed due to slowing growth and demand, with supply chain issues exacerbating the problems. Having a material underweight to utilities also detracted from relative returns, as the sector was one of the few positive returning sectors for the period.

Current Strategy and Outlook: The Portfolio's notable overweight exposures are in energy, industrials and healthcare. It is also overweight technology stocks, but to a lesser extent. The Portfolio is underweight utilities, real estate, communication services and materials.

We believe the process identifies deeply mispriced securities where there is a major dislocation in the intrinsic value and current value. Then, determining the company's issues and strategy to overcome headwinds, enables us to be patient while the market digests progress. Ongoing market volatility continues to create attractive investment opportunities which we believe enables us to continue to offer a highly differentiated opportunity from the broad market indices and peers.

Sector Diversification
as of December 31, 2022
(as a percentage of net assets)

Financials

   

20.4

%

 

Health Care

   

19.1

%

 

Industrials

   

13.1

%

 

Energy

   

11.3

%

 

Information Technology

   

9.7

%

 

Consumer Staples

   

7.2

%

 

Consumer Discretionary

   

6.3

%

 

Communication Services

   

3.4

%

 

Materials

   

3.3

%

 

Utilities

   

1.5

%

 

Real Estate

   

0.5

%

 

Assets in Excess of Other Liabilities*

   

4.2

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments.

Portfolio holdings are subject to change daily.

Top Ten Holdings
as of December 31, 2022*
(as a percentage of net assets)

Chevron Corp.

   

2.9

%

 

Philip Morris International, Inc.

   

2.7

%

 

Bank of America Corp.

   

2.6

%

 

American International Group, Inc.

   

2.5

%

 

Elevance Health, Inc.

   

2.4

%

 

Wells Fargo & Co.

   

2.3

%

 

Johnson Controls International plc

   

2.1

%

 

Cisco Systems, Inc.

   

2.0

%

 

Caterpillar, Inc.

   

2.0

%

 

State Street Corp.

   

1.9

%

 

*  Excludes short-term investments.

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.


14


PORTFOLIO MANAGERS' REPORT

VY® INVESCO COMSTOCK PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 
   

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

0.12

%

   

7.56

%

   

10.57

%

 

Class I

   

0.63

%

   

8.10

%

   

11.13

%

 

Class S

   

0.38

%

   

7.82

%

   

10.84

%

 

Russell 1000® Value Index

   

-7.54

%

   

6.67

%

   

10.29

%

 

S&P 500® Index

   

-18.11

%

   

9.42

%

   

12.56

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of VY® Invesco Comstock Portfolio against the indices indicated. An index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the

Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.


15


VY® INVESCO EQUITY AND INCOME PORTFOLIO

PORTFOLIO MANAGERS' REPORT

VY® Invesco Equity and Income Portfolio (the "Portfolio") seeks total return consisting of long-term capital appreciation and current income. The Portfolio is managed by Brian Jurkash, Co-lead Portfolio Manager, Matthew Titus, Co-lead Portfolio Manager, Sergio Marcheli and Chuck Burge, Portfolio Managers of Invesco Advisers, Inc. — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class S shares provided a total return of -7.83% compared to the Russell 1000® Value Index, Bloomberg U.S. Government/Credit Index and the 60% Russell 1000® Value Index/40% Bloomberg U.S. Government/Credit Index, which returned -7.54%, -13.58% and -9.70%, respectively, for the same period.

Portfolio Specifics: For the year ended December 31, 2022, the Portfolio outperformed the Russell 1000® Value Index before fees and expenses.

Within the Portfolio's equity allocation, stock selection in health care was the largest contributor to relative performance, and Merck, McKesson and Cigna were strong individual contributors. Merck benefitted from strong sales of its oral antiviral Covid treatment. McKesson recently divested its underperforming pharmacy business in Europe that was a drag on growth and margins. Cigna's customer retention exceeded estimates, and the company affirmed its earnings outlook for the year.

Selection in industrials also contributed to the Portfolio's relative return, due largely to Raytheon Technologies and Quanta Services. Aerospace and defense company Raytheon performed well, particularly due to an increase in defense spending following the Russian invasion of Ukraine. Quanta benefitted from an increase in renewable energy infrastructure spending and the recently passed Inflation Reduction Act.

An underweight in real estate also contributed to relative outperformance for the period.

Stock selection in consumer discretionary was the largest detractor from relative performance, due primarily to General Motors (GM) and Amazon. GM has faced ongoing supply-chain related issues that have hurt results. Amazon reported weaker than expected revenues and lowered its outlook due to macroeconomic headwinds and inflationary pressures.

The Portfolio's underweight in consumer staples also detracted from relative performance. The Portfolio lacked exposure to some of the stronger performers in the sector, as the team believes these companies do not fit the Portfolio's investment criteria.

The Portfolio's overweight and stock selection in information technology was also detracted from relative performance, due in part to Cognizant Technology Solutions and Intel. Higher labor costs and staffing issues weighed on Cognizant's stock. Intel reported earnings that came in far below expectations. The chipmaker also reduced guidance for the remainder of the year amid worsening macro conditions and weak PC demand.

The Portfolio's cash position, while approximately 3% on average, contributed to relative performance in the difficult market environment. The Portfolio's holdings in investment grade bonds and convertible securities underperformed the Russell 1000® Value Index and were significant detractors from relative performance during the year.

The Portfolio held currency forward contracts for the purpose of hedging currency exposure of non-US-based companies held in the Portfolio. These derivatives were not for speculative purposes or leverage, and these positions had a positive impact on the Portfolio's relative performance for the year.

Current Strategy and Outlook: During the year, the team increased the number of holdings in the health care, energy and IT sectors and reduced holdings in industrials, materials and utilities. At year end, the Fund's largest overweight exposures were in IT and health care, while the largest underweights were in utilities and consumer staples.

We believe market volatility will continue as the Fed's rate increases gradually work through the economy and recession risks rise. Regardless of the market environment, we seek to invest in companies with attractive valuations and strong fundamentals, qualities that we believe will ultimately be reflected in those companies' stock prices.

Top Ten Holdings
as of December 31, 2022*
(as a percentage of net assets)

United States Treasury Note, 4.000%, 12/15/25

   

2.9

%

 

United States Treasury Note, 3.875%, 11/30/27

   

2.7

%

 

Wells Fargo & Co.

   

2.4

%

 

ConocoPhillips

   

2.4

%

 

United States Treasury Note, 3.875%, 11/30/29

   

2.1

%

 

American International Group, Inc.

   

1.8

%

 

Bank of America Corp.

   

1.8

%

 

Merck & Co., Inc.

   

1.7

%

 

Exxon Mobil Corp.

   

1.6

%

 

General Motors Co.

   

1.6

%

 

*  Excludes short-term investments.

Portfolio holdings are subject to change daily.

Sector Diversification
as of December 31, 2022
(as a percentage of net assets)

Financials

   

19.3

%

 

Health Care

   

12.4

%

 

U.S. Treasury Notes

   

9.4

%

 

Energy

   

9.4

%

 

Industrials

   

8.5

%

 

Information Technology

   

7.2

%

 

Consumer Discretionary

   

5.1

%

 

Consumer, Non-cyclical

   

4.1

%

 

Communication Services

   

4.0

%

 

Communications

   

3.9

%

 

Technology

   

3.3

%

 

Consumer Staples

   

3.1

%

 

Utilities

   

1.6

%

 

Real Estate

   

1.5

%

 

Materials

   

1.2

%

 

Consumer, Cyclical

   

1.1

%

 

U.S. Treasury Bonds

   

1.1

%

 

Federal National Mortgage Association

   

0.1

%

 

Basic Materials

   

0.1

%

 

Municipal Bonds

   

0.0

%

 

Assets in Excess of Other Liabilities*

   

3.6

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments.

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.


16


PORTFOLIO MANAGERS' REPORT

VY® INVESCO EQUITY AND INCOME PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 
   

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

-8.07

%

   

5.07

%

   

7.85

%

 

Class I

   

-7.60

%

   

5.60

%

   

8.39

%

 

Class S

   

-7.83

%

   

5.33

%

   

8.12

%

 

Class S2

   

-7.95

%

   

5.20

%

   

7.98

%

 

Russell 1000® Value Index

   

-7.54

%

   

6.67

%

   

10.29

%

 

Bloomberg U.S. Government/Credit Index

   

-13.58

%

   

0.21

%

   

1.16

%

 

60% Russell 1000® Value Index/40% Bloomberg U.S. Government/Credit Index

   

-9.70

%

   

4.47

%

   

6.84

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of VY® Invesco Equity and Income Portfolio against the indices indicated. An index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the

Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.


17


VY® INVESCO GLOBAL PORTFOLIO

PORTFOLIO MANAGERS' REPORT

VY® Invesco Global Portfolio (the "Portfolio") seeks capital appreciation. The Portfolio is managed by John Delano, CFA. Vice President and Portfolio Manager of Invesco Advisers, Inc. ("Invesco") — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class S shares provided a total return of -32.10% compared to the MSCI All Country World IndexSM (the "Index"), which returned -18.36% for the same period.

Portfolio Specifics: The five largest absolute contributors in 2022 were Novo Nordisk A/S, ICICI Bank Limited, Brunello Cuccinelli S.p.A., Airbus SE, and Analog Devices Inc.

Novo Nordisk A/S Class B has a big new drug on the market, Wegovy, indicated for weight loss. Broader indications for cardiac benefits in obese patients, await additional trial data. Obesity and diabetes are indications growing rapidly across the world and Novo is the leading company in the field. ICICI Bank Limited is the second largest private sector bank in India. It is benefiting from an Indian economy that remained relatively strong in the face of a weakening global economy. Brunello Cuccinelli S.p.A the Italian luxury house, has continued to produce strong results in the face of an economic environment that has otherwise been showing signs of softening. Airbus SE, the duopoly plane maker along with Boeing, has struggled with supply chain woes impacting deliveries of the 700 new aircraft targeted for 2022, which would represent 34% growth year over year. Order intake remains strong, however. High energy costs make modern fuel-efficient planes an appealing option. Analog Devices Inc is a maker of analog semis, as its name would suggest. Analog semis are used to convert measures such as temperature, pressure, or sound into digital signals. As the world becomes more digital ( 0 or1) it gets more analog too. It is a beneficiary of the internet of things as machines collect more and more data.

Developed markets averaged 88.88% of the Portfolio during 2022, which is slightly more than that of the Index. Emerging markets, therefore, reflect a very slight underweight, though neither is driven by any top down allocation effort. Developed markets comprised all of the full year performance deficit across the Portfolio in 2022.

The United States and Japan were the largest sources of underperformance in 2022 with the US, primarily due to its underweight allocation, being the largest by a sizable margin. In neither case was there a top down allocation decision to be invested on not invested there, or anywhere else. The holdings and decisions regarding them were and are made on a company by company basis.

Current Strategy and Outlook: Our thematic, long-term, investment style leads us towards what we believe are quality businesses with sustainability of both enterprise and advantaged position. We hope to buy these at prices that do not fully reflect their future value, usually because the current understanding of that value by the market is misestimated for a reason that is temporary. Unpopularity is a price we are willing to incur for a while. Also, it has been our experience that competitively advantaged companies in ascendant industries can create economic value that can go on for decades. This is why we believe and behave with a long-term focus.

Geographic Diversification
as of December 31, 2022
(as a percentage of net assets)

United States

   

52.0

%

 

France

   

9.4

%

 

Japan

   

6.4

%

 

China

   

6.3

%

 

Netherlands

   

6.0

%

 

India

   

5.5

%

 

Sweden

   

4.2

%

 

Denmark

   

4.0

%

 

Germany

   

2.1

%

 

Switzerland

   

0.8

%

 

Countries between 0.2%-0.8%^

   

2.1

%

 

Assets in Excess of Other Liabilities*

   

1.2

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments.

^  Includes 5 countries, which each represents 0.2%-0.8% of net assets.

Portfolio holdings are subject to change daily.

Top Ten Holdings
as of December 31, 2022
(as a percentage of net assets)

Alphabet, Inc. — Class A

   

9.7

%

 

LVMH Moet Hennessy Louis Vuitton SE

   

5.9

%

 

Analog Devices, Inc.

   

5.3

%

 

S&P Global, Inc.

   

5.1

%

 

Airbus SE

   

4.9

%

 

Intuit, Inc.

   

4.8

%

 

JD.com, Inc. ADR

   

4.8

%

 

Novo Nordisk A/S

   

4.0

%

 

DLF Ltd.

   

3.5

%

 

Meta Platforms, Inc.

   

3.2

%

 

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.


18


PORTFOLIO MANAGERS' REPORT

VY® INVESCO GLOBAL PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 

 

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

-32.28

%

   

2.29

%

   

7.30

%

 

Class I

   

-31.93

%

   

2.80

%

   

7.84

%

 

Class S

   

-32.10

%

   

2.55

%

   

7.58

%

 

Class S2

   

-32.21

%

   

2.39

%

   

7.41

%

 

MSCI All Country World IndexSM

   

-18.36

%

   

5.23

%

   

7.98

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of VY® Invesco Global Portfolio against the index indicated. The index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and

expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.


19


VY® JPMORGAN MID CAP VALUE PORTFOLIO

PORTFOLIO MANAGERS' REPORT

VY® JPMorgan Mid Cap Value Portfolio (the "Portfolio") seeks growth from capital appreciation. The Portfolio is managed by Jonathan K.L. Simon and Lawrence Playford, CFA, Managing Directors and Portfolio Managers of J.P. Morgan Investment Management Inc. — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class S shares provided a total return of -8.62% compared to the Russell Midcap® Value Index (the "Index" or "Russell Midcap® Value"), which returned -12.03% for the same period.

Portfolio Specifics: 2022 was a rollercoaster ride for investors. For US equities markets, despite some ups along the way, it marked the worst year since the Global Financial Crisis. While there were little places to hide, value & defensive stocks were in favor, protecting more on the downside vs. other areas. Given this tumultuous backdrop, Mid Cap Value significantly outperformed its benchmark by ~3.8% with positive stock selection in 9/11 sectors. Strong stock selection in technology and financials contributed to outperformance, while communications services and energy served as detractors.

Technology has been at the forefront of the market sell-off, and in our opinion, we have navigated well through our underweight & strong stock selection. As a function of not owning some of the more cyclical or growth-oriented stocks, our names are down -9% vs. the broader benchmark down -28%. Companies like Motorola (MSI) have protected on the downside by continuing to beat on quarterly earnings & even raising its outlook. Revenue growth has accelerated, and operating margins have remained more resilient vs. forecasts. While we've taken some profits on its relative strength, we still expect MSI's talented management team to continue to deliver value through a mixture of prudent M&A activity and returning capital to shareholders.

Stock selection within communication services has been disappointing, with Liberty Broadband (LRBDK) acting as a top detractor. Charter, LBRDK's principal holding, continues to stumble with declining residential broadband subscribers. While fixed wireless competition looms over the stock multiple, we feel optimistic in LBRDK's management team's ability to navigate, as evidenced by their active share buy backs during bouts of volatility. We believe LBRDK's valuation remains inexpensive, and the business has evolved from high growth to a steady-eddy cash flow generator, which keeps it a strong fit within the Portfolio.

Current Strategy and Outlook: Financials: We feel comfortable with our financials exposure given our diverse portfolio of companies. Asset sensitive banks are still benefitting from higher rates, but also pose risks with deteriorating credit fundamentals, so we are being patient to add. We feel compensated for the banks we own that have proven management teams during difficult environments (M&T Bank).

Consumer: We have taken some profits in quality winners that are known and loved by the market (AutoZone) and have position-sized retailers where balance sheets are no longer pristine (Kohl's). We are looking for opportunities to add to discretionary companies that will benefit from an economic rebound.

Energy: We remain underweight given worries around demand after such a strong run. We shifted the complexion of our holdings by taking profits in top performers (Diamondback Energy) and adding to more stable companies with less oil sensitivity and higher natural gas exposure (Williams Companies).

Technology: The overall space remains challenged, and we see further downside risk in more traditional technology companies. We have altered our exposure under the hood, recycling proceeds from winners (Motorola) into companies benefiting from idiosyncratic opportunities with strong balance sheets trading at a relative discount (Teledyne Technologies).

Sector Diversification
as of December 31, 2022
(as a percentage of net assets)

Financials

   

23.5

%

 

Industrials

   

12.7

%

 

Real Estate

   

10.7

%

 

Consumer Discretionary

   

10.4

%

 

Utilities

   

8.7

%

 

Health Care

   

8.4

%

 

Information Technology

   

7.4

%

 

Materials

   

5.7

%

 

Consumer Staples

   

4.4

%

 

Communication Services

   

3.6

%

 

Energy

   

2.6

%

 

Assets in Excess of Other Liabilities*

   

1.9

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments.

Portfolio holdings are subject to change daily.

Top Ten Holdings
as of December 31, 2022*
(as a percentage of net assets)

Xcel Energy, Inc.

   

1.9

%

 

Ameriprise Financial, Inc.

   

1.9

%

 

Laboratory Corp. of America Holdings

   

1.9

%

 

M&T Bank Corp.

   

1.8

%

 

Huntington Bancshares, Inc.

   

1.8

%

 

AmerisourceBergen Corp.

   

1.8

%

 

WEC Energy Group, Inc.

   

1.7

%

 

CMS Energy Corp.

   

1.7

%

 

Loews Corp.

   

1.7

%

 

Entergy Corp.

   

1.5

%

 

*  Excludes short-term investments.

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.


20


PORTFOLIO MANAGERS' REPORT

VY® JPMORGAN MID CAP VALUE PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 

 

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

-8.84

%

   

5.37

%

   

9.39

%

 

Class I

   

-8.39

%

   

5.89

%

   

9.94

%

 

Class S

   

-8.62

%

   

5.63

%

   

9.66

%

 

Class S2

   

-8.82

%

   

5.46

%

   

9.49

%

 

Russell Midcap® Value

   

-12.03

%

   

5.72

%

   

10.11

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of VY® JPMorgan Mid Cap Value Portfolio against the index indicated. The index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the

Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.


21


VY® T. ROWE PRICE DIVERSIFIED MID CAP GROWTH PORTFOLIO

PORTFOLIO MANAGERS' REPORT

VY® T. Rowe Price Diversified Mid Cap Growth Portfolio (the "Portfolio") seeks long-term capital appreciation. The Portfolio is managed by Donald J. Peters, Vice President, Portfolio Manager of T. Rowe Price Associates, Inc. — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class S shares provided a total return of -24.47% compared to the S&P MidCap 400® Index and the Russell Midcap® Growth Index, which returned -13.06% and -26.72%, respectively, for the same period.

Portfolio Specifics: The Portfolio outperformed its benchmark, the Russell Midcap® Growth Index, for the 12-month period. Broadly speaking, stock selection drove relative outperformance.

The consumer discretionary sector contributed to relative results, driven by stock selection. O'Reilly Automotive sells automotive replacement parts, equipment, and accessories to do-it-yourself and commercial customers. The company has enjoyed strong demand for parts in supply-constrained new and used car markets and benefited from the ability to pass along higher costs to customers.

Security selection in the health care sector aided relative performance. McKesson is the largest North American distributor of drugs — including coronavirus vaccines — and ambulatory medical-surgical supplies. Shares were buoyed by better-than-expected earnings results and improving earnings guidance during the period.

Stock choices in the industrials and business services sector also had a positive impact on relative results, driven by Valmont Industries. Valmont Industries engages in the design and manufacturing of fabricated metal products. Shares traded higher on earnings results reflecting solid revenue and operating margin improvement.

Conversely, the Portfolio's relative underweight allocation to the utilities sector was a notable detractor from relative performance, as the sector outperformed the broader market during the period. Poor stock choices also led to relative underperformance in this sector.

The Portfolio's overweight to the information technology sector, coupled with stock selection, also hindered relative returns during the period.

Current Strategy and Outlook: Major U.S. stock indexes fell sharply in 2022, the worst year for equities since the 2008 global financial crisis. Investors shunned riskier assets in response to Russia's invasion of Ukraine, elevated inflation exacerbated by rising commodity prices and global supply chain disruptions, surging U.S. Treasury yields, tightening financial conditions, and slowing economic and corporate earnings growth. The Federal Reserve's (Fed's) aggressive short-term interest rate hikes that began in March, as well as comments that it would be willing to risk causing a recession by raising rates and keeping them at a higher level in order to bring inflation down, also weighed on the market. Although many indexes finished the year above their lowest levels of 2022, the year ended with many investors concerned that ongoing Fed rate hikes would hurt corporate earnings and push the economy into a recession in 2023.

Sector Diversification
as of December 31, 2022
(as a percentage of net assets)

Information Technology

   

28.5

%

 

Industrials

   

16.4

%

 

Health Care

   

15.7

%

 

Consumer Discretionary

   

15.0

%

 

Financials

   

6.9

%

 

Energy

   

5.1

%

 

Materials

   

3.5

%

 

Consumer Staples

   

2.9

%

 

Real Estate

   

2.8

%

 

Communication Services

   

2.7

%

 

Utilities

   

0.3

%

 

Assets in Excess of Other Liabilities*

   

0.2

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments.

Portfolio holdings are subject to change daily.

Top Ten Holdings
as of December 31, 2022
(as a percentage of net assets)

Enphase Energy, Inc.

   

1.4

%

 

Autozone, Inc.

   

1.4

%

 

Hilton Worldwide Holdings, Inc.

   

1.4

%

 

Synopsys, Inc.

   

1.3

%

 

DexCom, Inc.

   

1.3

%

 

Cadence Design Systems, Inc.

   

1.3

%

 

McKesson Corp.

   

1.3

%

 

Agilent Technologies, Inc.

   

1.2

%

 

Amphenol Corp.

   

1.2

%

 

Chipotle Mexican Grill, Inc.

   

1.2

%

 

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.


22


PORTFOLIO MANAGERS' REPORT

VY® T. ROWE PRICE DIVERSIFIED MID CAP GROWTH PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 

 

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

-24.63

%

   

8.04

%

   

11.49

%

 

Class I

   

-24.34

%

   

8.55

%

   

12.04

%

 

Class R6(1)

   

-24.31

%

   

8.58

%

   

12.06

%

 

Class S

   

-24.47

%

   

8.30

%

   

11.77

%

 

Class S2

   

-24.60

%

   

8.13

%

   

11.59

%

 

S&P MidCap 400® Index

   

-13.06

%

   

6.71

%

   

10.78

%

 

Russell Midcap® Growth Index

   

-26.72

%

   

7.64

%

   

11.41

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of VY® T. Rowe Price Diversified Mid Cap Growth Portfolio against the indices indicated. An index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and

expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.

(1)  Class R6 incepted on May 3, 2016. The Class R6 shares performance shown for the period prior to their inception date is the performance of Class I shares without adjustment for any differences in the expenses between the two classes. If adjusted for such differences, returns would be different.


23


VY® T. ROWE PRICE GROWTH EQUITY PORTFOLIO

PORTFOLIO MANAGERS' REPORT

VY® T. Rowe Price Growth Equity Portfolio (the "Portfolio") seeks long-term growth through investments in stocks. The Portfolio is managed by Joseph B. Fath, Vice President and Portfolio Manager of T. Rowe Price Associates, Inc. — the Sub-Adviser.

Performance: For the year ended December 31, 2022, the Portfolio's Class I shares, provided a total return of -40.66% compared to the S&P 500® Index and the Russell 1000® Growth Index, which returned -18.11% and -29.14%, respectively, for the same period.

Portfolio Specifics: The Portfolio underperformed the benchmark for the period. Stock selection and sector allocation both drove relative underperformance. Consumer discretionary was a significant relative detractor due to security selection and an overweight allocation. The communication services sector also hindered relative results, owing to stock choices and an overweight allocation. The information technology sector further weighed on returns due to stock choices and an overweight exposure. Conversely, a lack of exposure to the real estate sector aided relative performance.

The consumer discretionary sector detracted the most during the period. Shares of Amazon traded lower in response to deceleration within both e-commerce and Amazon Web Services as consumer confidence and enterprise cloud spend soften due to macro concerns. The company also disappointed in terms of cost control efforts that fell short of targets, with its bloated logistics footprint continuing to weigh on profitability.

Real estate was the only sector that aided relative performance due to a lack of exposure. We remain underweight to real estate, given the lack of attractive opportunities with long-term growth prospects.

Current Strategy and Outlook: Heading into 2023, capital markets appear to have priced in a significant global economic slowdown. The key question is whether this deceleration will end in a "soft landing" — with slower but still positive growth — or in a full-fledged recession that drags down earnings. Much depends on the U.S. Federal Reserve and the world's other major central banks as they continue efforts to bring inflation under control by hiking interest rates and draining liquidity from the markets. Nevertheless, we expect geopolitical risks will remain potential triggers for downside volatility in 2023. Structural factors, such as bank capital requirements that constrain market liquidity, could magnify price movements, both up and down. While there are good reasons for caution in 2023, excessive pessimism and volatility can create value for agile investors. In difficult markets, we believe security selection will be critical.

Sector Diversification
as of December 31, 2022
(as a percentage of net assets)

Information Technology

   

48.1

%

 

Consumer Discretionary

   

17.9

%

 

Health Care

   

14.1

%

 

Communication Services

   

10.6

%

 

Industrials

   

3.7

%

 

Consumer Staples

   

0.6

%

 

Financials

   

0.4

%

 

Assets in Excess of Other Liabilities*

   

4.6

%

 

Net Assets

   

100.0

%

 

*  Includes short-term investments.

Portfolio holdings are subject to change daily.

Top Ten Holdings
as of December 31, 2022*
(as a percentage of net assets)

Microsoft Corp.

   

12.9

%

 

Apple, Inc.

   

9.3

%

 

Amazon.com, Inc.

   

5.8

%

 

Alphabet, Inc. — Class A

   

4.1

%

 

UnitedHealth Group, Inc.

   

4.0

%

 

Visa, Inc. — Class A

   

3.2

%

 

Mastercard, Inc. — Class A

   

3.0

%

 

ASML Holding NV — NY Reg

   

2.6

%

 

Nvidia Corp.

   

2.5

%

 

Intuit, Inc.

   

2.5

%

 

*  Excludes short-term investments.

Portfolio holdings are subject to change daily.

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers' views are subject to change at any time based on market and other conditions.

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Portfolio holdings are subject to change daily. The outlook for this Portfolio may differ from that presented for other Voya mutual funds. This report contains statements that may be "forward-looking" statements. Actual results may differ materially from those projected in the "forward-looking" statements. The Portfolio's performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.


24


PORTFOLIO MANAGERS' REPORT

VY® T. ROWE PRICE GROWTH EQUITY PORTFOLIO

Average Annual Total Returns for the Periods Ended December 31, 2022

 

 

1 Year

 

5 Year

 

10 Year

 

Class ADV

   

-40.93

%

   

4.23

%

   

10.56

%

 

Class I

   

-40.66

%

   

4.75

%

   

11.11

%

 

Class S

   

-40.81

%

   

4.49

%

   

10.83

%

 

Class S2

   

-40.88

%

   

4.34

%

   

10.67

%

 

S&P 500® Index

   

-18.11

%

   

9.42

%

   

12.56

%

 

Russell 1000® Growth Index

   

-29.14

%

   

10.96

%

   

14.10

%

 

Based on a $10,000 initial investment, the graph and table above illustrate the total return of VY® T. Rowe Price Growth Equity Portfolio against the indices indicated. An index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

The Portfolio's performance is shown without the imposition of any expenses or charges which are, or may be, imposed under your variable annuity contract or variable life insurance policy. Total returns would have been lower if such expenses or charges were included.

The performance graph and table do not reflect the deduction of taxes that a shareholder will pay on Portfolio distributions or the redemption of Portfolio shares.

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the

Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.

The performance update illustrates performance for a variable investment option available through a variable annuity contract or a variable life insurance policy. The performance shown indicates past performance and is not a projection or prediction of future results. Actual investment returns and principal value will fluctuate so that shares and/or units, at redemption, may be worth more or less than their original cost. Please log on to www.voyainvestments.com or call (800) 262-3862 to get performance through the most recent month end.

Portfolio holdings are subject to change daily.


25


SHAREHOLDER EXPENSE EXAMPLES (UNAUDITED)

As a shareholder of a Portfolio, you incur two types of costs: (1) transaction costs, including redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Portfolio expenses. These Examples are intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

The Examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2022 to December 31, 2022. The Portfolios' expenses are shown without the imposition of any charges which are, or may be, imposed under your variable annuity contract, variable life insurance policy, qualified pension, or retirement plan. Expenses would have been higher if such charges were included.

Actual Expenses

The left section of the table shown below, "Actual Portfolio Return," provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The right section of the table shown below, "Hypothetical (5% return before expenses)," provides information about hypothetical account values and hypothetical expenses based on a Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees or exchange fees. Therefore, the hypothetical section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different mutual funds. In addition, if these transactional costs were included, your costs would have been higher.

   

Actual Portfolio Return

 

Hypothetical (5% return before expenses)

 

Voya Global Bond Portfolio

  Beginning
Account
Value
July 1,
2022
  Ending
Account
Value
December 31,
2022
  Annualized
Expense
Ratio
  Expenses Paid
During the
Period Ended
December 31,
2022*
  Beginning
Account
Value
July 1,
2022
  Ending
Account
Value
December 31,
2022
  Annualized
Expense
Ratio
  Expenses Paid
During the
Period Ended
December 31,
2022*
 

Class ADV

 

$

1,000.00

   

$

976.00

     

1.17

%

 

$

5.83

   

$

1,000.00

   

$

1,019.31

     

1.17

%

 

$

5.96

   

Class I

   

1,000.00

     

979.10

     

0.67

     

3.34

     

1,000.00

     

1,021.83

     

0.67

     

3.41

   

Class S

   

1,000.00

     

977.80

     

0.92

     

4.59

     

1,000.00

     

1,020.57

     

0.92

     

4.69

   

Voya International High Dividend Low Volatility Portfolio

 

Class ADV

 

$

1,000.00

   

$

1,031.70

     

1.22

%

 

$

6.25

   

$

1,000.00

   

$

1,019.06

     

1.22

%

 

$

6.21

   

Class I

   

1,000.00

     

1,033.80

     

0.72

     

3.69

     

1,000.00

     

1,021.58

     

0.72

     

3.67

   

Class S

   

1,000.00

     

1,032.90

     

0.97

     

4.97

     

1,000.00

     

1,020.32

     

0.97

     

4.94

   

Class S2

   

1,000.00

     

1,032.30

     

1.12

     

5.74

     

1,000.00

     

1,019.56

     

1.12

     

5.70

   

VY® American Century Small-Mid Cap Value Portfolio

 

Class ADV

 

$

1,000.00

   

$

1,055.10

     

1.35

%

 

$

6.99

   

$

1,000.00

   

$

1,018.40

     

1.35

%

 

$

6.87

   

Class I

   

1,000.00

     

1,057.00

     

0.85

     

4.41

     

1,000.00

     

1,020.92

     

0.85

     

4.33

   

Class S

   

1,000.00

     

1,056.00

     

1.10

     

5.70

     

1,000.00

     

1,019.66

     

1.10

     

5.60

   

Class S2

   

1,000.00

     

1,055.10

     

1.25

     

6.47

     

1,000.00

     

1,018.90

     

1.25

     

6.36

   


26


SHAREHOLDER EXPENSE EXAMPLES (UNAUDITED) (CONTINUED)

   

Actual Portfolio Return

 

Hypothetical (5% return before expenses)

 

VY® Baron Growth Portfolio

  Beginning
Account
Value
July 1,
2022
  Ending
Account
Value
December 31,
2022
  Annualized
Expense
Ratio
  Expenses Paid
During the
Period Ended
December 31,
2022*
  Beginning
Account
Value
July 1,
2022
  Ending
Account
Value
December 31,
2022
  Annualized
Expense
Ratio
  Expenses Paid
During the
Period Ended
December 31,
2022*
 

Class ADV

 

$

1,000.00

   

$

1,085.50

     

1.49

%

 

$

7.83

   

$

1,000.00

   

$

1,017.69

     

1.49

%

 

$

7.58

   

Class I

   

1,000.00

     

1,088.40

     

0.99

     

5.21

     

1,000.00

     

1,020.21

     

0.99

     

5.04

   

Class R6

   

1,000.00

     

1,087.90

     

0.98

     

5.16

     

1,000.00

     

1,020.27

     

0.98

     

4.99

   

Class S

   

1,000.00

     

1,086.80

     

1.24

     

6.52

     

1,000.00

     

1,018.95

     

1.24

     

6.31

   

Class S2

   

1,000.00

     

1,086.10

     

1.39

     

7.31

     

1,000.00

     

1,018.20

     

1.39

     

7.07

   

VY® Columbia Contrarian Core Portfolio

 

Class ADV

 

$

1,000.00

   

$

1,000.00

     

1.22

%

 

$

6.15

   

$

1,000.00

   

$

1,019.06

     

1.22

%

 

$

6.21

   

Class I

   

1,000.00

     

1,001.40

     

0.72

     

3.63

     

1,000.00

     

1,021.58

     

0.72

     

3.67

   

Class S

   

1,000.00

     

1,000.90

     

0.97

     

4.89

     

1,000.00

     

1,020.32

     

0.97

     

4.94

   

VY® Columbia Small Cap Value II Portfolio

 

Class ADV

 

$

1,000.00

   

$

1,045.50

     

1.42

%

 

$

7.32

   

$

1,000.00

   

$

1,018.05

     

1.42

%

 

$

7.22

   

Class I

   

1,000.00

     

1,048.20

     

0.92

     

4.75

     

1,000.00

     

1,020.57

     

0.92

     

4.69

   

Class R6

   

1,000.00

     

1,048.60

     

0.86

     

4.44

     

1,000.00

     

1,020.87

     

0.86

     

4.38

   

Class S

   

1,000.00

     

1,047.00

     

1.17

     

6.04

     

1,000.00

     

1,019.31

     

1.17

     

5.96

   

Class S2

   

1,000.00

     

1,045.40

     

1.32

     

6.81

     

1,000.00

     

1,018.55

     

1.32

     

6.72

   

VY® Invesco Comstock Portfolio

 

Class ADV

 

$

1,000.00

   

$

1,087.40

     

1.20

%

 

$

6.31

   

$

1,000.00

   

$

1,019.16

     

1.20

%

 

$

6.11

   

Class I

   

1,000.00

     

1,089.90

     

0.70

     

3.69

     

1,000.00

     

1,021.68

     

0.70

     

3.57

   

Class S

   

1,000.00

     

1,088.70

     

0.95

     

5.00

     

1,000.00

     

1,020.42

     

0.95

     

4.84

   

VY® Invesco Equity and Income Portfolio

 

Class ADV

 

$

1,000.00

   

$

1,049.20

     

1.14

%

 

$

5.89

   

$

1,000.00

   

$

1,019.46

     

1.14

%

 

$

5.80

   

Class I

   

1,000.00

     

1,051.80

     

0.64

     

3.31

     

1,000.00

     

1,021.98

     

0.64

     

3.26

   

Class S

   

1,000.00

     

1,050.50

     

0.89

     

4.60

     

1,000.00

     

1,020.72

     

0.89

     

4.53

   

Class S2

   

1,000.00

     

1,049.90

     

1.02

     

5.27

     

1,000.00

     

1,020.06

     

1.02

     

5.19

   

VY® Invesco Global Portfolio

 

Class ADV

 

$

1,000.00

   

$

996.20

     

1.30

%

 

$

6.54

   

$

1,000.00

   

$

1,018.65

     

1.30

%

 

$

6.61

   

Class I

   

1,000.00

     

999.00

     

0.80

     

4.03

     

1,000.00

     

1,021.17

     

0.80

     

4.08

   

Class S

   

1,000.00

     

997.70

     

1.05

     

5.29

     

1,000.00

     

1,019.91

     

1.05

     

5.35

   

Class S2

   

1,000.00

     

996.80

     

1.20

     

6.04

     

1,000.00

     

1,019.16

     

1.20

     

6.11

   

VY® JPMorgan Mid Cap Value Portfolio

 

Class ADV

 

$

1,000.00

   

$

1,055.30

     

1.38

%

 

$

7.15

   

$

1,000.00

   

$

1,018.25

     

1.38

%

 

$

7.02

   

Class I

   

1,000.00

     

1,057.80

     

0.88

     

4.56

     

1,000.00

     

1,020.77

     

0.88

     

4.48

   

Class S

   

1,000.00

     

1,056.90

     

1.13

     

5.86

     

1,000.00

     

1,019.51

     

1.13

     

5.75

   

Class S2

   

1,000.00

     

1,055.50

     

1.28

     

6.63

     

1,000.00

     

1,018.75

     

1.28

     

6.51

   


27


SHAREHOLDER EXPENSE EXAMPLES (UNAUDITED) (CONTINUED)

   

Actual Portfolio Return

 

Hypothetical (5% return before expenses)

 
VY® T. Rowe Price Diversified
Mid Cap Growth Portfolio
  Beginning
Account
Value
July 1,
2022
  Ending
Account
Value
December 31,
2022
  Annualized
Expense
Ratio
  Expenses Paid
During the
Period Ended
December 31,
2022*
  Beginning
Account
Value
July 1,
2022
  Ending
Account
Value
December 31,
2022
  Annualized
Expense
Ratio
  Expenses Paid
During the
Period Ended
December 31,
2022*
 

Class ADV

 

$

1,000.00

   

$

1,063.40

     

1.28

%

 

$

6.66

   

$

1,000.00

   

$

1,018.75

     

1.28

%

 

$

6.51

   

Class I

   

1,000.00

     

1,064.80

     

0.78

     

4.06

     

1,000.00

     

1,021.27

     

0.78

     

3.97

   

Class R6

   

1,000.00

     

1,065.70

     

0.75

     

3.91

     

1,000.00

     

1,021.42

     

0.75

     

3.82

   

Class S

   

1,000.00

     

1,065.30

     

1.03

     

5.36

     

1,000.00

     

1,020.01

     

1.03

     

5.24

   

Class S2

   

1,000.00

     

1,063.70

     

1.18

     

6.14

     

1,000.00

     

1,019.26

     

1.18

     

6.01

   

VY® T. Rowe Price Growth Equity Portfolio

 

Class ADV

 

$

1,000.00

   

$

944.60

     

1.23

%

 

$

6.03

   

$

1,000.00

   

$

1,019.00

     

1.23

%

 

$

6.26

   

Class I

   

1,000.00

     

946.60

     

0.73

     

3.58

     

1,000.00

     

1,021.53

     

0.73

     

3.72

   

Class S

   

1,000.00

     

945.50

     

0.98

     

4.81

     

1,000.00

     

1,020.27

     

0.98

     

4.99

   

Class S2

   

1,000.00

     

945.20

     

1.13

     

5.54

     

1,000.00

     

1,019.51

     

1.13

     

5.75

   

*  Expenses are equal to each Portfolio's respective annualized expense ratios multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half-year.


28


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of Voya Global Bond Portfolio, Voya International High Dividend Low Volatility Portfolio, VY® American Century Small-Mid Cap Value Portfolio, VY® Baron Growth Portfolio, VY® Columbia Contrarian Core Portfolio, VY® Columbia Small Cap Value II Portfolio, VY® Invesco Comstock Portfolio, VY® Invesco Equity and Income Portfolio, VY® Invesco Global Portfolio, VY® JPMorgan Mid Cap Value Portfolio, VY® T. Rowe Price Diversified Mid Cap Growth Portfolio and VY® T. Rowe Price Growth Equity Portfolio and the Board of Directors of Voya Partners, Inc.

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of Voya Global Bond Portfolio, Voya International High Dividend Low Volatility Portfolio, VY® American Century Small-Mid Cap Value Portfolio, VY® Baron Growth Portfolio, VY® Columbia Contrarian Core Portfolio, VY® Columbia Small Cap Value II Portfolio, VY® Invesco Comstock Portfolio, VY® Invesco Equity and Income Portfolio, VY® Invesco Global Portfolio, VY® JPMorgan Mid Cap Value Portfolio, VY® T. Rowe Price Diversified Mid Cap Growth Portfolio and VY® T. Rowe Price Growth Equity Portfolio (collectively referred to as the "Portfolios") (twelve of the portfolios constituting Voya Partners, Inc. (the "Company")), including the portfolios of investments, as of December 31, 2022, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the three years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Portfolios (twelve of the portfolios constituting Voya Partners, Inc.) at December 31, 2022, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the three years in the period then ended, in conformity with U.S. generally accepted accounting principles.

The financial highlights for each of the years in the two-year period ended December 31, 2019, were audited by another independent registered public accounting firm whose report, dated February 26, 2020, expressed an unqualified opinion on those financial highlights.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Portfolios' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Voya investment companies since 2019.

Boston, Massachusetts
February 28, 2023


29


STATEMENTS OF ASSETS AND LIABILITIES AS OF DECEMBER 31, 2022

   

Voya
Global Bond
Portfolio
  Voya
International
High Dividend
Low Volatility
Portfolio
 
VY®
American Century
Small-Mid Cap Value
Portfolio
 
VY®
Baron
Growth
Portfolio
 

ASSETS:

 

Investments in securities at fair value+*

 

$

98,751,713

   

$

334,272,448

   

$

349,407,054

   

$

464,872,591

   

Investments in affiliates at fair value**

   

11,322,819

     

     

     

   
Short-term investments at fair value     

23,309,914

     

7,250,283

     

6,912,092

     

1,748,846

   
Cash    

720,625

     

     

     

   

Cash collateral for futures contracts

   

1,550,000

     

     

     

   

Cash pledged for centrally cleared swaps (Note 2)

   

985,000

     

     

     

   

Cash pledged as collateral for OTC derivatives (Note 2)

   

1,800,000

     

     

     

   
Foreign currencies at value     

1,545,324

     

323,571

     

54,274

     

   

Receivables:

 

Investment securities and currencies sold

   

214,696

     

142,724

     

1,268,624

     

   

Fund shares sold

   

127,194

     

2,903

     

104,188

     

65,412

   

Dividends

   

21,106

     

542,280

     

716,436

     

541,407

   

Interest

   

871,177

     

485

     

     

88,480

   

Foreign tax reclaims

   

4,588

     

1,541,821

     

17,910

     

   
Unrealized appreciation on forward foreign currency
contracts
   

1,154,564

     

     

17,832

     

   

Unrealized appreciation on forward premium swaptions

   

9,841

     

     

     

   

Unrealized appreciation on OTC swap agreements

   

4,189

     

     

     

   

Prepaid expenses

   

680

     

1,765

     

1,758

     

2,481

   

Reimbursement due from Investment Adviser

   

15,197

     

     

170,864

     

47,050

   

Other assets

   

9,772

     

33,165

     

10,520

     

25,966

   

Total assets

   

142,418,399

     

344,111,445

     

358,681,552

     

467,392,233

   

LIABILITIES:

 

Payable for investment securities and currencies purchased

   

2,321,521

     

142,960

     

651,851

     

   
Payable for investment securities purchased on a
delayed-delivery or when-issued basis
   

15,824,592

     

     

     

   

Payable for fund shares redeemed

   

414

     

520,153

     

480,050

     

247,211

   

Payable upon receipt of securities loaned

   

1,684,277

     

7,250,283

     

1,611,775

     

   
Unrealized depreciation on forward foreign currency
contracts
   

279,312

     

     

107,967

     

   

Unrealized depreciation on forward premium swaptions

   

94,400

     

     

     

   

Variation margin payable on centrally cleared swaps

   

1,789

     

     

     

   

Variation margin payable on futures contracts

   

569,736

     

     

     

   

Cash received as collateral for OTC derivatives (Note 2)

   

480,000

     

     

     

   
Cash received as collateral for delayed-delivery or
when-issued securities (Note 2)
   

6,872

     

     

     

   

Payable for investment management fees

   

61,283

     

171,656

     

281,227

     

388,204

   

Payable for distribution and shareholder service fees

   

10,915

     

53,983

     

62,399

     

89,096

   

Payable to custodian due to bank overdraft

   

     

5,015

     

     

   

Payable for directors fees

   

331

     

887

     

925

     

1,236

   
Payable to directors under the deferred compensation
plan (Note 6)
   

9,772

     

33,165

     

10,520

     

25,966

   

Other accrued expenses and liabilities

   

50,939

     

105,783

     

47,601

     

73,217

   

Written options, at fair value^

   

1,446,855

     

     

     

   

Total liabilities

   

22,843,008

     

8,283,885

     

3,254,315

     

824,930

   

NET ASSETS

 

$

119,575,391

   

$

335,827,560

   

$

355,427,237

   

$

466,567,303

   

NET ASSETS WERE COMPRISED OF:

 

Paid-in capital

 

$

149,728,060

   

$

334,263,996

   

$

317,854,098

   

$

80,181,372

   

Total distributable earnings (loss)

   

(30,152,669

)

   

1,563,564

     

37,573,139

     

386,385,931

   

NET ASSETS

 

$

119,575,391

   

$

335,827,560

   

$

355,427,237

   

$

466,567,303

   
+ Including securities loaned at value  

$

1,637,285

   

$

6,878,826

   

$

1,546,608

   

$

   
* Cost of investments in securities  

$

108,681,781

   

$

325,493,133

   

$

352,441,733

   

$

104,667,320

   
** Cost of investments in affiliates  

$

13,692,757

   

$

   

$

   

$

   
† Cost of short-term investments  

$

23,312,254

   

$

7,250,283

   

$

6,912,092

   

$

1,748,846

   
‡ Cost of foreign currencies  

$

1,557,549

   

$

321,745

   

$

54,274

   

$

   
^ Premiums received on written options  

$

1,519,647

   

$

   

$

   

$

   

See Accompanying Notes to Financial Statements
30


STATEMENTS OF ASSETS AND LIABILITIES AS OF DECEMBER 31, 2022 (CONTINUED)

   
Voya
Global Bond
Portfolio
  Voya
International
High Dividend
Low Volatility
Portfolio
 
VY®
American Century
Small-Mid Cap Value
Portfolio
 
VY®
Baron
Growth
Portfolio
 

Class ADV:

 

Net assets

 

$

14,350,376

   

$

24,167,224

   

$

98,642,020

   

$

99,639,454

   

Shares authorized

   

100,000,000

     

100,000,000

     

100,000,000

     

100,000,000

   

Par value

 

$

0.001

   

$

0.001

   

$

0.001

   

$

0.001

   

Shares outstanding

   

1,784,189

     

2,701,024

     

9,114,911

     

5,229,809

   

Net asset value and redemption price per share

 

$

8.04

   

$

8.95

   

$

10.82

   

$

19.05

   

Class I:

 

Net assets

 

$

83,034,357

   

$

107,059,527

   

$

165,701,729

   

$

122,510,546

   

Shares authorized

   

100,000,000

     

100,000,000

     

100,000,000

     

100,000,000

   

Par value

 

$

0.001

   

$

0.001

   

$

0.001

   

$

0.001

   

Shares outstanding

   

10,134,897

     

11,818,530

     

13,920,050

     

5,030,123

   

Net asset value and redemption price per share

 

$

8.19

   

$

9.06

   

$

11.90

   

$

24.36

   

Class R6:

 

Net assets