Voya Financial Inc. (NYSE: VOYA) is an American insurance and wealth management company that originated as ING U.S., a U.S. subsidiary of ING Group that spun off in 2013. Voya Financial has over 40 years of experience in wealth management and $210 billion in assets under management (AUM). The company offers numerous mutual funds, typically with no load fees. Voya mutual funds and other investment vehicles outperformed their benchmark in 81% of cases on a 10-year basis. Most Voya mutual funds come with net expense ratios that have competitive rates by fund industry standards.
Morningstar rates many mutual funds based on their risk-adjusted returns, long-tenured management teams, consistent investment approaches and fees charged by the funds. Numerous Voya mutual funds have earned five-star overall ratings from Morningstar in different equity, fixed income and alternative categories.
Voya Large Cap Growth Portfolio Class S
Founded in 2004, the Voya Large Cap Growth Portfolio seeks long-term capital growth by investing in common stocks of large-cap companies with above-average growth prospects. It has $5.8 billion in AUM and typically holds companies similar to those included in the Russell 1000 Index. The fund uses in-depth financial analysis to identify stocks with business momentum, attractive valuation and catalysts. The fund's portfolio is dominated by information technology stocks (about 24% allocation), consumer cyclical stocks (20% allocation) and health care equities (20% allocation). The Voya Large Cap Growth Portfolio has a concentrated portfolio of stocks, with Apple at 7.1% allocation and Alphabet at 4.6% allocation.
The fund's managers have been with it for over five years, and each has extensive wealth management experience from recognized companies, such as Credit Suisse and JPMorgan. From 2005 to 2015, the fund has generated a 10.15% average annual return with a 15.87% standard deviation, resulting in a 0.62 Sharpe ratio. It has no load fees and charges a 0.85% expense ratio, which is below average for its peers in the large growth category. Morningstar has awarded the fund five-star overall and 10-year ratings, as well as four-star ratings for the last three and five years in the large growth category.
Voya Floating Rate Fund Class W
With $1.1 billion in AUM, the Voya Floating Rate Fund seeks a high level of current income by investing in U.S. dollar-denominated floating rate loans, floating rate bonds and notes. The fund comes with a minimal interest rate risk because interest rates for the fund's holdings rest with market rates. Most of the fund's holdings are rated below investment grade, which bring higher potential returns in exchange for increased default risk. The fund's holdings are well-diversified, with no single sector accounting for more than 12% of its assets. The fund has an average duration of 0.11 year and a 3.87% 30-day SEC yield.
From 2010 to 2015, the fund has demonstrated an impressive 3.62% average annual return and a 3.05% standard deviation, as well as a 1.16 Sharpe ratio. It has a 0.77% net expense ratio and comes with no load fees. Morningstar has given the fund five-star overall and five-year ratings, as well as a four-star three-year rating.
Voya GNMA Income Fund Class W
With over $1.1 billion in AUM, the Voya GNMA Income Fund is one of the oldest Voya funds to invest in mortgage-backed securities (MBS) issued by the Government National Mortgage Association (GNMA). Historically, GNMA is the highest-yielding security backed by the U.S. government with the highest-quality credit rating. The fund has an average duration of 2.75 years and a 1.36% 30-day SEC yield, making it less sensitive to changes in market rates.
From 2010 to 2015, the Voya GNMA Income Fund Class W has generated a 3.25% average annual return and a 1.96% standard deviation, resulting in an exceptionally high 1.62 Sharpe ratio. The fund has a proven track record of managing prepayment and interest rate risks with low overall volatility. The fund comes with no load fees and has a 0.67% net expense ratio. Morningstar has assigned five-star overall, three- and five-year ratings to the fund in the intermediate government category.