NOTES TO FINANCIAL STATEMENTS
as of June 30, 2026 (Unaudited)
NOTE 1 — ORGANIZATION
As further detailed below, the Voya Variable Product
Funds are series of Voya Variable Funds, Voya Variable Portfolios, Inc., Voya Intermediate Bond Portfolio, and Voya Government Money Market
Portfolio (collectively, the “Registrants”), all of which are open-end investment management companies registered under the
Investment Company Act of 1940, as amended (“1940 Act”).
Voya Variable Funds is a business trust formed
under the laws of Massachusetts on January 25, 1984 with one diversified series, Voya Growth and Income Portfolio (“Growth and Income”).
Voya Variable Portfolios, Inc. is a company incorporated under the laws of Maryland on June 4, 1996 and has seventeen active separate
investment series. The two diversified series of Voya Variable Portfolios, Inc. included in this report are Voya Global High Dividend
Low Volatility Portfolio (“Global High Dividend Low Volatility”), and Voya Small Company Portfolio (“Small Company”).
Voya Intermediate Bond Portfolio is a business trust formed under the laws of Massachusetts on January 25, 1984 with one diversified series,
Voya Intermediate Bond Portfolio (“Intermediate Bond”). Voya Government Money Market Portfolio is a business trust formed
under the laws of Massachusetts on January 25, 1984 with one diversified series, Voya Government Money Market Portfolio (“Government
Money Market”). Each of the Voya Variable Product Funds is a “Portfolio” and collectively, they are the “Portfolios.”
The investment objective of the Portfolios is described in the respective Portfolio’s Prospectus.
The classes of shares included in this report
are: Adviser (“Class ADV”), Class I, Class R6, Class S, and Service 2 (“Class S2”); however, each Portfolio may
not offer all share classes. With the exception of class specific matters, each class has equal voting rights as to voting privileges.
For class specific proposals, only the applicable class would have voting privileges. The classes differ principally in the applicable
distribution and shareholder service fees, as well as differences in the amount of waiver of fees and reimbursement of expenses, if any.
Generally, shareholders of each class also bear certain expenses that pertain to that particular class. All shareholders are allocated
the common expenses of a portfolio and earn income and realized gains/ losses from a portfolio pro rata based on the daily ending net
assets of each class, without distinction between share classes. Expenses that are specific to a portfolio or a class are charged directly
to that portfolio or class. Other operating expenses shared by several portfolios are generally allocated among those portfolios based
on average net assets. Distributions are determined separately for each class based on income and expenses allocated to each class. Realized
gain distributions are allocated to each class pro rata based on the shares outstanding of each class on the date of distribution. Differences
in per share
dividend rates generally result from differences
in separate class expenses, including distribution and shareholder service fees, if any, as well as differences in the amount of waiver
of fees and reimbursement of expenses between the separate classes, if any.
Voya Investments, LLC (“Voya Investments”
or the “Investment Adviser”), an Arizona limited liability company, serves as the Investment Adviser to the Portfolios. Voya
Investment Management Co. LLC (“Voya IM” or the “Sub-Adviser”), a Delaware limited liability company, serves as
the Sub-Adviser to the Portfolios. Voya Investments Distributor, LLC (“VID” or the “Distributor”), a Delaware
limited liability company, serves as the principal underwriter to the Portfolios.
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES
The Portfolios are investment companies and accordingly
follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting
Standards Board Codification Topic 946 Financial Services - Investment Companies.
The following significant accounting policies
are consistently followed by the Portfolios in the preparation of their financial statements. Each Portfolio is considered an investment
company under U.S. generally accepted accounting principles (“GAAP”) and follows the accounting and reporting guidance applicable
to investment companies.
A. Security Valuation. Each Portfolio
is open for business every day the New York Stock Exchange (“NYSE”) opens for regular trading (each such day, a “Business
Day”). The net asset value (“NAV”) per share for each class of each Portfolio, (except Government Money Market), is
determined each Business Day as of the close of the regular trading session (“Market Close”), as determined by the Consolidated
Tape Association (“CTA”), the central distributor of transaction prices for exchange-traded securities (normally 4:00 p.m.
Eastern Time unless otherwise designated by the CTA). The NAV per share of each class of each Portfolio is calculated by taking the value
of the Portfolio’s assets attributable to that class, subtracting the Portfolio’s liabilities attributable to that class,
and dividing by the number of shares of that class that are outstanding. On days when a Portfolio is closed for business, Portfolio shares
will not be priced and a Portfolio does not transact purchase and redemption orders. To the extent a Portfolio’s assets are traded
in other markets on days when a Portfolio does not price its shares, the value of a Portfolio’s assets will likely change and you
will not be able to purchase or redeem shares of a Portfolio.
Portfolio securities for which market quotations
are readily available are valued at market value. Investments in open-end registered investment companies that do not trade on an exchange
are valued at the end of day NAV per share.
NOTES TO FINANCIAL
STATEMENTS as of June
30, 2026 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
The prospectuses of the open-end registered investment
companies in which each Portfolio may invest explain the circumstances under which they will use fair value pricing and the effects of
using fair value pricing. Foreign securities’ prices are converted into U.S. dollar amounts using the applicable exchange rates
as of Market Close.
When a market quotation for a portfolio
security is not readily available or is deemed unreliable (for example when trading has been halted or there are unexpected market closures
or other material events that would suggest that the market quotation is unreliable) and for purposes of determining the value of other
Portfolio assets, the asset is priced at its fair value. The Board has designated the Investment Adviser, as the valuation designee, to
make fair value determinations in good faith. In determining the fair value of each Portfolio’s assets, the Investment Adviser,
pursuant to its fair valuation policy, may consider inputs from pricing service providers, broker-dealers, or each Portfolio’s sub-adviser(s).
Issuer specific events, transaction price, position size, nature and duration of restrictions on disposition of the security, market trends,
bid/ask quotes of brokers and other market data may be reviewed in the course of making a good faith determination of an asset’s
fair value. Because trading hours for certain foreign securities end before Market Close, closing market quotations may become unreliable.
The prices of foreign securities will generally be adjusted based on inputs from an independent pricing service that are intended to reflect
valuation changes through the NYSE close. Because of the inherent uncertainties of fair valuation, the values used to determine each Portfolio’s
NAV may materially differ from the value received upon actual sale of those investments. Thus, fair valuation may have an unintended dilutive
or accretive effect on the value of shareholders’ investments in each Portfolio.
The Portfolios’ financial instruments
are valued at the close of the NYSE and are reported at fair value, which GAAP defines as the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Various valuation techniques and inputs
are used to determine the fair value of financial instruments. GAAP establishes the following fair value hierarchy that categorizes the
inputs used to measure fair value:
Level 1 – quoted prices (unadjusted)
in active markets for identical financial instruments that the portfolio can access at the reporting date.
Level 2 – inputs other than Level
1 quoted prices that are observable, either directly or indirectly (including, but not
limited to, quoted prices for similar financial
instruments in active markets, quoted prices for identical or similar financial instruments in inactive markets, interest rates and yield
curves, implied volatilities, and credit spreads).
Level 3 – unobservable inputs (including
the portfolio’s own assumptions in determining fair value).
Observable inputs are developed using market data,
such as publicly available information about actual events or transactions, and reflect the assumptions that market participants would
use to price the financial instrument. Unobservable inputs are those for which market data are not available and are developed using the
best information available about the assumptions that market participants would use to price the financial instrument. GAAP requires valuation
techniques to maximize the use of relevant observable inputs and minimize the use of unobservable inputs. When multiple inputs are used
to derive fair value, the financial instrument is assigned to the level within the fair value hierarchy based on the lowest-level input
that is significant to the fair value of the financial instrument. Input levels are not necessarily an indication of the risk or liquidity
associated with financial instruments at that level but rather the degree of judgment used in determining those values.
A table summarizing each Portfolio’s investments
under these levels of classification is included within each Portfolio of Investments.
Government Money Market uses the amortized cost
method to value its portfolio securities and seeks to maintain a constant NAV of $1.00 per share, although there may be circumstances
under which this goal cannot be achieved. The amortized cost method involves valuing a security at its cost and amortizing any discount
or premium over the period until maturity, regardless of the impact of fluctuating interest rates or the market value of the security.
Although the Board has established procedures designed to stabilize, to the extent reasonably possible, the share price of Government
Money Market, there can be no assurance that the Portfolio’s NAV can be maintained at $1.00 per share.
Each investment asset or liability of the Portfolios
is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets
for identical securities are classified as “Level 1,” inputs other than quoted prices for an asset or liability that are observable
are classified as “Level 2” and significant unobservable inputs, including the Sub-Adviser’s or Pricing Committee’s
judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as “Level 3.”
The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Short-term
securities of sufficient credit quality are generally considered
NOTES TO FINANCIAL
STATEMENTS as of June
30, 2026 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
to be Level 2 securities under applicable accounting
rules. The Portfolios classify each of their investments in the Underlying Funds as Level 1, without consideration as to the classification
level of the specific investments held by the Underlying Funds. A table summarizing each Portfolio’s investments under these levels
of classification is included within the Portfolio of Investments.
GAAP requires a reconciliation of the beginning
to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases
and sales, and transfers in or out of the Level 3 category during the period. A reconciliation of Level 3 investments within the Portfolio
of Investments is presented only when a Portfolio has a significant amount of Level 3 investments.
B. Securities
Transactions and Revenue Recognition. Securities transactions are accounted for on the trade date. Realized gains and losses
are reported on the basis of identified cost of securities sold. Interest income, adjusted for the accretion of discounts and
amortization of premiums (if applicable), is recorded on an accrual basis. Dividend income is recorded on the ex-dividend date, or
for certain foreign securities, when the information becomes available to the Portfolios.
C. Foreign Currency Translation.
The books and records of the Portfolios are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S.
dollars on the following basis:
| (1) | Market
value of investment securities, other assets and liabilities — at the exchange rates prevailing at Market Close. |
| (2) | Purchases
and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions. |
Although the net assets and the market values
are presented at the foreign exchange rates at Market Close, the Portfolios do not isolate the portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held.
Such fluctuations are included with the net realized and unrealized gains or losses from investments. For securities, which are subject
to foreign withholding tax upon disposition, liabilities are recorded on the Statements of Assets and Liabilities for the estimated tax
withholding based on the securities’ current market value. Upon disposition, realized gains or losses on such securities are recorded
net of foreign withholding tax.
Reported net realized foreign exchange gains or
losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest, and foreign withholding tax reclaims recorded on each Portfolio’s
book, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise
from changes in the value of assets and liabilities other than investments in securities, resulting from changes in the exchange rate.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with investing in U.S.
companies and U.S. government securities. These risks include, but are not limited to, revaluation of currencies and future adverse political
and economic developments, which could cause securities and their markets to be less liquid and prices more volatile than those of comparable
U.S. companies and U.S. government securities. The foregoing risks are even greater with respect to securities of issuers in emerging
markets.
D. Risk Exposures and the Use of Derivative
Instruments. Certain Portfolios’ investment strategies permit the Portfolios to enter into various types of derivatives
contracts, including, but not limited to, futures contracts, forward foreign currency exchange contracts, credit default swaps, interest
rate swaps, total return swaps, and purchased and written options. In doing so, a Portfolio will employ strategies in differing combinations
to permit it to increase or decrease the level of risk, or change the level or types of exposure to risk factors. This may allow a Portfolio
to pursue its objectives more quickly and efficiently than if it were to make direct purchases or sales of securities capable of affecting
a similar response to market or credit factors.
In pursuit of its investment objectives, a Portfolio
may seek to increase or decrease its exposure to the following market or credit risk factors:
Credit Risk. The price of a bond
or other debt instrument is likely to fall if the issuer’s actual or perceived financial health deteriorates, whether because of
broad economic or issuer-specific reasons. In certain cases, the issuer could be late in paying interest or principal, or could fail to
pay its financial obligations altogether.
Equity Risk. Stock prices may be
volatile or have reduced liquidity in response to real or perceived impacts of factors including, but not limited to, economic conditions,
changes in market interest rates, and political events. Stock markets tend to be cyclical, with periods when stock prices generally rise
and periods when stock prices generally decline. Any given stock market segment may remain out of favor with investors for a short or
long period of time, and stocks as an
NOTES TO FINANCIAL
STATEMENTS as of June
30, 2026 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
asset class may underperform bonds or other asset
classes during some periods. Additionally, legislative, regulatory or tax policies or developments in these areas may adversely impact
the investment techniques available to a manager, add to costs and impair the ability of a Portfolio to achieve its investment objectives.
Foreign Exchange Rate Risk. To the
extent that a Portfolio invests directly in foreign (non-U.S.) currencies or in securities denominated in, or that trade in, foreign (non-U.S.)
currencies, it is subject to the risk that those foreign (non-U.S.) currencies will decline in value relative to the U.S. dollar or, in
the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged by a Portfolio through
foreign currency exchange transactions.
Currency rates may fluctuate significantly over
short periods of time. Currency rates may be affected by changes in market interest rates, intervention (or the failure to intervene)
by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, by the imposition of
currency controls, or other political or economic developments in the United States or abroad.
Interest Rate Risk. A rise in market
interest rates generally results in a fall in the value of bonds and other debt instruments; conversely, values generally rise as market
interest rates fall. Interest rate risk is generally greater for debt instruments than floating-rate instruments. The higher the credit
quality of the instrument, and the longer its maturity or duration, the more sensitive it is to changes in market interest rates. Duration
is a measure of sensitivity of the price of a debt instrument to a change in interest rate. The U.S. Federal Reserve Board recently lowered
interest rates following a period of consistent rate increases. Declining market interest rates increase the likelihood that debt instruments
will be pre-paid. Rising market interest rates have unpredictable effects on the markets and may expose debt and related markets to heightened
volatility. To the extent that a mutual fund invests in debt instruments, an increase in market interest rates may lead to increased redemptions
and increased portfolio turnover, which could reduce liquidity for certain investments, adversely affect values, and increase costs. Increased
redemptions may cause a mutual fund to liquidate portfolio positions when it may not be advantageous to do so and may lower returns. If
dealer capacity in debt markets is insufficient for market conditions, it may further inhibit liquidity and increase volatility in debt
markets. Fiscal, economic, monetary, or other governmental policies or measures have in the past, and may in the future, cause or exacerbate
risks
associated with interest rates, including changes
in interest rates. Negative or very low interest rates could magnify the risks associated with changes in interest rates. In general,
changing interest rates, including rates that fall below zero, could have unpredictable effects on markets and may expose debt and related
markets to heightened volatility. Changes to monetary policy by the U.S. Federal Reserve Board or other regulatory actions could expose
debt and related markets to heightened volatility, interest rate sensitivity, and reduced liquidity, which may impact operations and return
potential.
Risks of Investing in Derivatives. A
Portfolio’s use of derivatives can result in losses due to unanticipated changes in the market or credit risk factors and the overall
market. In instances where a Portfolio is using derivatives to decrease, or hedge, exposures to market or credit risk factors for securities
held by a Portfolio, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged
positions.
Derivative instruments are subject to a number
of risks, including the risk of changes in the market price of the underlying securities, credit risk with respect to the counterparty,
risk of loss due to changes in market interest rates and liquidity and volatility risk. The amounts required to purchase certain derivatives
may be small relative to the magnitude of exposure assumed by a Portfolio. Therefore, the purchase of certain derivatives may have an
economic leveraging effect on a Portfolio and exaggerate any increase or decrease in the NAV. Derivatives may not perform as expected,
so a Portfolio may not realize the intended benefits. When used for hedging purposes, the change in value of a derivative may not correlate
as expected with the currency, security or other risk being hedged. When used as an alternative or substitute for direct cash investments,
the return provided by the derivative may not provide the same return as direct cash investment. In addition, given their complexity,
derivatives expose a Portfolio to the risk of improper valuation.
Generally, derivatives are sophisticated financial
instruments whose performance is derived, at least in part, from the performance of an underlying asset or assets. Derivatives include,
among other things, swap agreements, options, forwards and futures. Investments in derivatives are generally negotiated over-the-counter
(“OTC”) with a single counterparty and as a result are subject to credit risks related to the counterparty’s ability
or willingness to perform its obligations; any deterioration in the counterparty’s creditworthiness could adversely affect the value
of the derivative. In addition, derivatives and their underlying securities may experience periods of illiquidity which could cause a
Portfolio to hold a security it might otherwise sell, or to sell a security it otherwise might hold at inopportune times or at an unanticipated
NOTES TO FINANCIAL
STATEMENTS as of June
30, 2026 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
price. A manager might imperfectly judge the direction
of the market. For instance, if a derivative is used as a hedge to offset investment risk in another security, the hedge might not correlate
to the market’s movements and may have unexpected or undesired results such as a loss or a reduction in gains.
Counterparty Credit Risk and Credit Related
Contingent Features. Certain derivative positions are subject to counterparty credit risk, which is the risk that the counterparty
will not fulfill its obligation to a Portfolio. Each Portfolio’s derivative counterparties are financial institutions who are subject
to market conditions that may weaken their financial position. A Portfolio intends to enter into financial transactions with counterparties
that they believe to be creditworthy at the time of the transaction. To reduce this risk, a Portfolio has entered into master netting
arrangements, established within each Portfolio’s International Swaps and Derivatives Association, Inc. Master Agreements (“Master
Agreements”). These Master Agreements are with select counterparties and they govern transactions, including certain OTC derivative
and forward foreign currency contracts, entered into by a Portfolio and the counterparty. The Master Agreements maintain provisions for
general obligations, representations, agreements, collateral, and events of default or termination. The occurrence of a specified event
of termination may give a counterparty the right to terminate all of its contracts and affect settlement of all outstanding transactions
under the applicable Master Agreement.
A Portfolio may also enter into collateral agreements
with certain counterparties to further mitigate counterparty credit risk on OTC derivative and forward foreign currency contracts. Subject
to established minimum levels, collateral is generally determined based on the net aggregate unrealized gain or loss on contracts with
a certain counterparty. Collateral pledged to or from a Portfolio is held in a segregated account by a third-party agent and can be in
the form of cash or debt securities issued by the U.S. government or related agencies.
As of June 30, 2026, the maximum amount of loss
that Intermediate Bond would incur if the counterparties to its derivative transactions failed to perform would be $1,168,069 which represent
the gross payments to be received by the Portfolio on forward premium swaptions and forward foreign currency contracts were they to be
unwound as of June 30, 2026. At June 30, 2026, Intermediate Bond received $420,000 in cash collateral from certain counterparties.
Each Portfolio has credit-related contingent features
that if triggered would allow its derivative counterparties to close out and demand payment or additional collateral to cover
their exposure from a Portfolio. Credit-related
contingent features are established between each Portfolio and their derivatives counterparties to reduce the risk that a Portfolio will
not fulfill its payment obligations to its counterparties. These triggering features include, but are not limited to, a percentage decrease
in a Portfolio’s net assets and/or a percentage decrease in a Portfolio’s NAV, which could cause a Portfolio to accelerate
payment of any net liability owed to the counterparty. The contingent features are established within each Portfolio’s Master Agreements.
As of June 30, 2026, Intermediate Bond
had a liability position of $3,390,652 on forward premium swaptions, OTC interest rate swaps, OTC total return swaps and written options.
If a contingent feature would have been triggered as of June 30, 2026, the Portfolio could have been required to pay these amounts in
cash to its counterparties. At June 30, 2026, Intermediate Bond pledged $2,070,000 in cash collateral to certain counterparties for open
OTC derivatives.
E. Forward Foreign Currency Transactions
and Futures Contracts. Certain Portfolios may enter into foreign currency exchange transactions to convert to and from different
foreign currencies and to and from the U.S. dollar in connection with the planned purchases or sales of securities. When entering into
a forward foreign currency contract, a Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon
price on an agreed upon future date. A Portfolio either enters into these transactions on a spot basis at the spot rate prevailing in
the foreign currency exchange market or uses forward foreign currency contracts to purchase or sell foreign currencies. When the contract
is fulfilled or closed, gains or losses are realized. Until then, the gain or loss is included in unrealized appreciation or depreciation.
Risks may arise upon entering into forward contracts from the potential inability of counterparties to meet the terms of their forward
contracts and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
During the period ended June 30, 2026,
Intermediate Bond had average quarterly contract amounts of $3,377,068 and $18,704,546, respectively, on forward foreign currency contracts
purchased and sold.
Intermediate Bond entered into forward
foreign currency contracts to protect any non-U.S. dollar-denominated holdings from adverse currency movements. Please refer to the tables
within the respective Portfolio of Investments for Intermediate Bond for open forward foreign currency contracts at June 30, 2026.
Each Portfolio, with the exception of Government
Money Market, may enter into futures contracts involving foreign currency, interest rates, securities and security indices. A futures
contract is a commitment to buy or sell a specific
NOTES TO FINANCIAL
STATEMENTS as of June
30, 2026 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
amount of a financial instrument at a negotiated
price on a stipulated future date. A Portfolio may buy and sell futures contracts. Futures contracts traded on a commodities or futures
exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal
exchange at its trading session ending at, or most recently prior to, the time when each Portfolio’s assets are valued.
Upon entering into a futures contract, a Portfolio
is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent
payments (variation margin) are made or received by a Portfolio each day. The variation margin payments are equal to the daily changes
in the contract value and are recorded as unrealized gains and losses and, if any, shown as variation margin receivable or payable on
futures contracts on the Statement of Assets and Liabilities. Open futures contracts are reported on a table within each Portfolio’s
Portfolio of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are
footnoted in the Portfolio of Investments. Cash collateral held by the broker to cover initial margin requirements on open futures contracts
are noted in the Statements of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Statements
of Operations. Realized gains (losses) are reported in the Statements of Operations at the closing or expiration of futures contracts.
Futures contracts are exposed to the market risk
factor of the underlying financial instrument. During the period ended June 30, 2026, Intermediate Bond has purchased and sold futures
contracts on various bonds and notes as part of its duration management. Additional associated risks of entering into futures contracts
include the possibility that there may be an illiquid market where a Portfolio is unable to liquidate the contract or enter into an offsetting
position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of a Portfolio’s
securities. With futures, there is minimal counterparty credit risk to the Portfolios since futures are exchange traded and the exchange’s
clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
During the period ended June 30, 2026, Intermediate
Bond had average quarterly notional values of $194,171,044 and $32,166,833, respectively, on futures contracts purchased and sold. Please
refer to the tables within the respective Portfolio of Investments for Intermediate Bond for open futures contracts at June 30, 2026.
F. Options Contracts. Certain Portfolios
may write call and put options on futures, swaps (“swaptions”), securities, commodities or foreign currencies it owns or in
which it may invest. Writing put options tends to increase the Portfolios exposure to the underlying instrument. Writing call options
tends to decrease the Portfolios exposure to the underlying instrument. When a Portfolio writes a call or put option, an amount equal
to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written.
These liabilities are reflected as written options outstanding on the Statements of Assets and Liabilities. Forward premium swaptions
include premiums that have extended settlement dates. The delayed settlement of the premiums is factored into the daily valuation of the
option contracts. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options
which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency
transaction to determine the realized gain or loss. A Portfolio as a writer of an option has no control over whether the underlying instrument
may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying
the written option. There is the risk the Portfolios may not be able to enter into a closing transaction because of an illiquid market.
The Portfolios may also purchase put and call options. Purchasing call options tends to increase the Portfolios’ exposure to the
underlying instrument. Purchasing put options tends to decrease the Portfolios exposure to the underlying instrument. The Portfolios pay
a premium which is included on the Statements of Assets and Liabilities as an investment and subsequently marked to market to reflect
the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may
be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters
at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing
options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction
to determine the realized gain or loss.
During the period ended June 30, 2026, Intermediate
Bond had purchased forward premium swaptions with an average quarterly notional value of $93,652,883 to manage its duration and yield
curve exposures. Please refer to the tables within the Portfolio of Investments for open purchased forward premium swaptions at June 30,
2026.
During the period ended June 30, 2026, Intermediate
Bond had written forward premium swaptions with an average quarterly notional value of $601,536,726 to generate
NOTES TO FINANCIAL
STATEMENTS as of June
30, 2026 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
income. Please refer to the tables within the Portfolio
of Investments for open written forward premium swaptions at June 30, 2026.
During the period ended June 30, 2026, Intermediate
Bond had purchased interest swaptions to manage its duration strategy. Intermediate Bond had average quarterly notional values of $11,527,063
on purchased interest swaptions. There were no open purchased interest rate swaptions at June 30, 2026.
During the period ended June 30, 2026, Intermediate
Bond had written interest swaptions to generate income. Intermediate Bond had average quarterly notional values of $17,744,913 on written
interest swaptions. Please refer to the tables within the Portfolio of Investments for open written interest rate swaptions at June 30,
2026.
During the period ended June 30, 2026, Intermediate
Bond had written credit default swaptions to generate income. Intermediate Bond had average quarterly notional values of $9,926,000 on
written credit default swaptions. Please refer to the tables within the Portfolio of Investments for open written credit default swaptions
at June 30, 2026.
During the period ended June 30, 2026, Intermediate
Bond had written equity options with an average quarterly quarterly notional value of $1,530,750 to generate income. There were no open
written equity options at June 30, 2026.
G. Distributions to Shareholders.
The Portfolios record distributions to their shareholders on the ex-dividend date. All Portfolios distribute capital gains, if
any, annually. Small Company declares and pays dividends, if any, annually. Growth and Income declares and pays dividends, if any, semi-annually.
Government Money Market and Intermediate Bond declare dividends daily and pay dividends, if any, monthly. Global High Dividend Low Volatility
declares and pays dividends, if any, quarterly. The Portfolios may make distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. The characteristics of income and gains to be distributed are determined in accordance with
income tax regulations, which may differ from GAAP for investment companies.
H. Federal Income Taxes.
It is the policy of each Portfolio to comply with the requirements of subchapter M of the Internal Revenue Code that are applicable
to regulated investment companies and to distribute substantially all of its net investment income and any net realized capital gains
to its shareholders. Therefore, a U.S. federal income tax or excise tax provision is not required. Management has considered the sustainability
of the Portfolios’ tax
positions taken on U.S. federal income tax returns
for all open tax years in making this determination. No capital gain distributions shall be made until the capital loss carryforwards
have been fully utilized.
The Portfolios may utilize equalization accounting
for tax purposes, whereby a portion of redemption payments are treated as distributions of income or gain.
I. Use of Estimates. The preparation
of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
J. Repurchase Agreements. Each Portfolio
may invest in repurchase agreements only with government securities dealers recognized by the Board of Governors of the Federal Reserve
System. Under such agreements, the seller of the security agrees to repurchase it at a mutually agreed upon time and price. The resale
price is in excess of the purchase price and reflects an agreed upon interest rate for the period of time the agreement is outstanding.
The period of the repurchase agreements is usually short, from overnight to one week, while the underlying securities generally have longer
maturities. Each Portfolio will receive as collateral securities acceptable to it whose market value is equal to at least 100% of the
carrying amount of the repurchase agreements, plus accrued interest, being invested by the Portfolio. The underlying collateral is valued
daily on a mark-to-market basis to assure that the value, including accrued interest is at least equal to the repurchase price. There
would be potential loss to the Portfolio in the event the Portfolio is delayed or prevented from exercising its right to dispose of the
collateral, and it might incur disposition costs in liquidating the collateral.
Repurchase agreements are entered into by the Portfolios
under Master Repurchase Agreements (“MRA”) which permit the Portfolios, under certain circumstances, including an event of
default (such as bankruptcy or insolvency), to offset receivables or payables under the MRA with collateral held and/or pledged by the
counterparty and create one single net payment due to or from the respective Portfolio. Please refer to the table within the Portfolio
of Investments for Government Money Market for open repurchase agreements subject to the MRA on a net basis at June 30, 2026.
K. Securities Lending. Each Portfolio
(except Government Money Market) may temporarily loan up to 33⅓% of its total assets to brokers, dealers or other financial institutions
in exchange for a negotiated lender’s fee. Securities lending involves two primary risks: “investment risk” and “borrower
NOTES TO FINANCIAL
STATEMENTS as of June
30, 2026 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
default risk.” When lending securities, the
Portfolios will receive cash or U.S. government securities as collateral. Investment risk is the risk that the Portfolios will lose money
from the investment of the cash collateral received from the borrower. Borrower default risk is the risk that the Portfolios will lose
money due to the failure of a borrower to return a borrowed security. Loans are subject to termination at the option of the borrower or
the Portfolios. Securities lending may result in leverage. The use of leverage may exaggerate any increase or decrease in the NAV, causing
the Portfolios to be more volatile. The use of leverage may increase expenses and increase the impact of the Portfolios’ other risks.
L. Restricted Securities. The Portfolios
may invest in restricted securities, which include those sold under Rule 144A of the Securities Act of 1933, as amended (“1933
Act”) (“Rule144A”) or securities offered pursuant to Section 4(a)(2) of the 1933 Act, and/or are subject to legal or
contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Restricted securities are fair
valued using market quotations when readily available. In the absence of market quotations, the securities are valued based upon their
fair value determined in good faith under procedures approved by the Board.
Securities that are legally restricted as to resale
(such as those issued in private placements), including securities governed by Rule 144A and Regulation S under the 1933 Act, and securities
that are offered in reliance on Section 4(a)(2) of the 1933 Act are referred to as “restricted securities.” Restricted securities
may be sold in private placement transactions between issuers and their purchasers and may be neither listed on an exchange nor traded
in other established markets. Due to the absence of a public trading market, restricted securities may be more volatile, less liquid and
more difficult to value than publicly traded securities. The price realized from the sale of these securities could be less than the amount
originally paid or less than their fair value if they are resold in privately negotiated transactions. In addition, these securities may
not be subject to disclosure and other investment protection requirements that are afforded to publicly traded securities. Certain investments
may include investment in smaller, less seasoned issuers, which may involve greater risk.
M. When-Issued and Delayed-Delivery Transactions. Each
Portfolio may purchase or sell securities on a when-issued or forward commitment basis. The price of the underlying securities and
date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The fair value of such
is identified in the Portfolio of Investments. Losses may arise due to changes in the fair
value of the securities or from the inability
of counterparties to meet the terms of the contract. In connection with such purchases, the Portfolios are required to hold liquid assets
as collateral with the Portfolios’ custodian sufficient to cover the purchase price.
To mitigate counterparty risk, certain
Portfolios have entered into Master Securities Forward Transaction Agreements (“MSFTA”) with their respective counterparties
that provide for collateral and the right to offset amounts due to or from those counterparties under specified conditions. Subject to
minimum transfer amounts, collateral requirements are determined and transfers made based on the net aggregate unrealized gain or loss
on all the when-issued or delayed-delivery transactions with a particular counterparty. Cash collateral, if any, is presented on the Statement
of Assets and Liabilities as an asset (Cash pledged as collateral for delayed-delivery or when-issued securities) and a liability (Cash
received as collateral for delayed-delivery or when-issued securities). At June 30, 2026, there was $339,000 collateral pledged or received
for open when-issued or delayed-delivery transactions.
N. Mortgage Dollar Roll Transactions. Each Portfolio, except Small Company, may engage in dollar roll transactions with respect to mortgage-backed securities issued by Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corp. In a dollar roll transaction, a Portfolio sells a mortgage-backed security to a financial institution, such as a bank or broker/dealer, and simultaneously agrees to repurchase a substantially similar (i.e., same type, coupon, and maturity) security from the institution on a delayed delivery basis at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different prepayment histories. The Portfolios account for dollar roll transactions as purchases and sales. For fee based roll transactions, the fee is recorded as income.
O. Swap Agreements. Certain Portfolios may enter into swap agreements. A swap is an agreement between two parties pursuant to which each party agrees to make one or more payments to the other at specified future intervals based on the return of an asset (such as a stock, bond or currency) or non-asset reference (such as an interest rate or index). Swap agreements are privately negotiated in the OTC market and may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The swap agreement will specify the “notional” amount of the asset or non-asset reference to which the contract relates. Subsequent changes in fair value, if any, are calculated based upon changes in the performance of the asset or non-asset reference multiplied by the notional value of the contract.
NOTES TO FINANCIAL
STATEMENTS as of June
30, 2026 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
A Portfolio may enter into credit default, interest
rate, total return and currency swaps to manage its exposure to credit, currency and interest rate risk. All outstanding swap agreements
are reported within each Portfolio’s Portfolio of Investments.
Swaps are marked to market daily using quotations
primarily from third party pricing services, counterparties or brokers. The value of the swap contract is recorded on each Portfolio’s
Statement of Assets and Liabilities. During the term of the swap, changes in the value of the swap, if any, are recorded as unrealized
gains or losses on the Statement of Operations. Upfront payments paid or received by a Portfolio when entering into the agreements are
reported on the Statement of Assets and Liabilities and as a component of the changes in unrealized gains or losses on the Statement of
Operations. These upfront payments represent the amounts paid or received when initially entering into the swap agreement to compensate
for differences between the stated terms of the swap agreement and the prevailing market conditions. The upfront payments are included
as a component in the realized gains or losses on each Portfolio’s Statement of Operations upon termination or maturity of the swap.
A Portfolio also records net periodic payments paid or received on the swap contract as a realized gain or loss on the Statement of Operations.
In a centrally cleared swap, immediately following
execution of the swap agreement, the swap agreement is novated to a central counterparty (the “CCP”) and the Portfolio’s
counterparty on the swap agreement becomes the CCP. The Portfolios are required to interface with the CCP through a broker. Upon entering
into a centrally cleared swap, the Portfolios are required to deposit initial margin with the broker in the form of cash or securities
in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are footnoted
as pledged on the Portfolio of Investments and cash deposited is recorded on the Statements of Assets and Liabilities as cash pledged
for centrally cleared swaps. The daily change in valuation of centrally cleared swaps is recorded as a receivable or payable for variation
margin in the Statements of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded
as realized gain (loss) on the Statements of Operations.
Entering
into swap agreements involves the risk that the maximum potential loss of an investment exceeds the current value of the investment as
reported on each Portfolio’s Statement of Assets and Liabilities. Other risks involve the possibility that the counterparty to
the
agreements may default on its obligation to perform,
that there will be no liquid market for these investments and that unfavorable changes in the market will have a negative impact on the
value of the index or securities underlying the respective swap agreement.
Credit Default Swap Contracts. A
credit default swap is a bilateral agreement between counterparties in which the buyer of the protection agrees to make a stream of periodic
payments to the seller of protection in exchange for the right to receive a specified return in the event of a default or other credit
event for a referenced entity, obligation or index. As a seller of protection on credit default swaps, a Portfolio will generally receive
from the buyer a fixed payment stream based on the notional amount of the swap contract. This fixed payment stream will continue until
the swap contract expires or a defined credit event occurs.
A Portfolio is subject to credit risk in the normal
course of pursuing its investment objectives. As a seller of protection in a credit default swap, a Portfolio may execute these contracts
to manage its exposure to the market or certain sectors of the market. Certain Portfolios may also enter into credit default swaps to
speculate on changes in an issuer’s credit quality, to take advantage of perceived spread advantages, or to offset an existing short
equivalent (i.e. buying protection on an equivalent reference entity).
Certain Portfolios may sell credit default swaps
which expose these Portfolios to the risk of loss from credit risk related events specified in the contract. Although contract specific,
credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default or repudiation/moratorium.
If a Portfolio is a seller of protection, and a credit event occurs, as defined under the terms of that particular swap agreement, a Portfolio
will generally either (i) pay to the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation,
other deliverable obligations, or underlying securities comprising a referenced index or (ii) pay a net settlement amount in the form
of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities
comprising a referenced index. If a Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular
swap agreement, a Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and
deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive
a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced
obligation or underlying securities comprising the referenced index. Recovery values are assumed by market makers considering either industry
standard recovery rates or entity specific factors
NOTES TO FINANCIAL STATEMENTS as of June 30, 2026 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
and considerations until a credit event occurs.
If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker
bids, together with a specified valuation method, are used to calculate the settlement value.
Implied credit spreads, represented in absolute
terms, utilized in determining the fair value of credit default swap agreements on corporate issues or sovereign issues are disclosed
in each Portfolio’s Portfolio of Investments and serve as an indicator of the current status of the payment/ performance risk and
represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects
the cost of buying/ selling protection and may include upfront payments required to be made to enter into the agreement. For credit default
swaps on asset-backed securities or credit indices, the quoted market prices and resulting fair values serve as the indicator of the current
status of the payment/ performance risk. Wider credit spreads and increasing fair values, in absolute terms when compared to the notional
amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default
or other credit event occurring as defined under the terms of the agreement.
The maximum amount of future payments (undiscounted)
that a Portfolio as seller of protection could be required to make under a credit default swap agreement would be an amount equal to the
notional amount of the agreement. These potential amounts would be partially offset by any recovery values of the respective referenced
obligations, upfront payments received upon entering into the agreements, or net amounts received from the settlement of buy protection
credit default swap agreements entered into by a Portfolio for the same referenced entity or entities.
For the period ended June 30, 2026, Intermediate
Bond bought and sold credit protection on credit default swap indices (“CDX”). A CDX is a basket of credit instruments or
exposures designed to be representative of some part of the credit market as a whole. Intermediate Bond used CDX swaps to hedge or gain
additional exposure to credit risk associated with various sectors within the credit market.
For the period ended June 30, 2026, Intermediate
Bond had an average quarterly notional amount of $100,235,667 and $23,726,340 respectively, on credit default swaps to buy and sell protection.
Please refer to the tables within the Portfolio of Investments for Intermediate Bond for open credit default swaps to buy and sell protection
at June 30, 2026.
Interest Rate Swap Contracts. An
interest rate swap involves the agreement between counterparties to exchange periodic payments based on interest rates. One payment will
be based on a floating rate of a specified interest rate while the other will be a fixed rate. Risks involve the future fluctuations of
interest rates in which a Portfolio may make payments that are greater than what a Portfolio received from the counterparty. Other risks
include credit, liquidity and market risk.
For the period ended June 30, 2026, Intermediate
Bond has entered into interest rate swaps in which they pay a floating interest rate and receive a fixed interest rate (“Long interest
rate swap”) in order to increase exposure to interest rate risk. During the period ended June 30, 2026, Intermediate Bond had average
quarterly notional amount of $149,761,871 on Long interest rate swaps.
For the period ended June 30, 2026, Intermediate
Bond has entered into interest rate swaps in which it pays a fixed interest rate and receive a floating interest rate (“Short interest
rate swap”) in order to decrease exposure to interest rate risk. During the period ended June 30, 2026, Intermediate Bond had average
quarterly notional amounts of $257,907,419 on Short interest rate swaps.
Intermediate Bond entered into interest rate swaps
to adjust interest rate and yield curve exposures and to substitute for physical fixed-income securities. Please refer to the tables within
the Portfolio of Investments for open interest rate swaps at June 30, 2026.
At June 30, 2026, Intermediate Bond had pledged
$8,664,200 in cash collateral for open centrally cleared swaps.
Inflation-linked Swap Contracts. Certain
Funds may enter into inflation-linked swaps. In an inflation-linked swap, one party pays a fixed interest rate on a notional amount while
the other party pays a floating rate linked to an inflation index on that same notional amount. The party paying the floating rate pays
the inflation adjusted rate multiplied by the notional amount.
For the period ended June 30, 2026, Intermediate
Bond had entered into inflation-linked swaps in which it pays a floating interest rate and receives a fixed rate linked to an inflation
index ("long inflation-linked swap"). Average quarterly notional amount on long inflation linked-bonds were $6,058,000.
For the period ended June 30, 2026, Intermediate
Bond had entered into inflation-linked swaps in which it pays a fixed interest rate and receives a floating rate linked to an inflation
index ("short inflation-linked swap"). Average quarterly notional amount on short inflation linked-bonds were $6,058,000.
NOTES TO FINANCIAL STATEMENTS as of June 30, 2026 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
Intermediate Bond used inflation-linked swaps as
part of their inflation strategy. Please refer to the tables within the Portfolio of Investments for Intermediate Bond for open centrally
cleared inflation-linked swaps at June 30, 2026.
Total Return Swap Agreements. Certain
Portfolios may enter into total return swaps. Total return swaps are entered into to gain or mitigate exposure to the underlying reference
asset. Total return swap agreements involve commitments where single or multiple cash flows are exchanged based on the price of an underlying
reference asset and on a fixed or variable interest rate. Total return swap agreements may involve commitments to pay interest in exchange
for a market-linked return. One counterparty pays out the total return of a specific underlying reference asset, which may include a single
security, a basket of securities, or an index, and in return receives a fixed or variable rate. At the maturity date, a net cash flow
is exchanged where the total return is equivalent to the return of the underlying reference asset less a financing rate, if any. As a
receiver, a Portfolio would receive payments based on any net positive total return and would owe payments in the event of a net negative
total return. As the payer, a Portfolio would owe payments on any net positive total return, and would receive payments in the event of
a net negative total return. A Portfolio’s use of a total return swap exposes the Portfolio to credit loss in the event of nonperformance
by the swap counterparty. Risk may also arise from the unanticipated movements in value of exchange rates, interest rates, securities,
or the index.
For the period ended June 30, 2026, Intermediate
Bond had an average quarterly notional amount of $36,000,000 on receiver total return swaps. Please refer to the tables within the Portfolio
of Investments for open total return swaps at June 30, 2026.
Volatility Swap Contracts. Certain
Portfolios may enter into volatility swaps. Volatility swaps are agreements in which the counterparties agree to make payments in connection
with changes in the volatility (i.e., the magnitude of change over a specified period of time) of an underlying referenced instrument,
such as a currency, rate, index, security or other financial instrument. Volatility swaps permit the parties to attempt to hedge volatility
risk and/or take positions on the projected future volatility of an underlying referenced instrument. As a receiver of the realized price
volatility, a Portfolio would receive the payoff amount when the realized price volatility of the referenced instrument is greater than
the strike and would owe the payoff amount when the volatility is less than the strike. As a payer of the realized price volatility, a
Portfolio would owe the payoff amount when the realized price volatility of the referenced
instrument is greater than the strike and
would receive the payoff amount when the volatility is less than the strike.
During the period ended June 30, 2026,
Intermediate Bond did not enter into any volatility swaps.
P. Indemnifications. In the
normal course of business, the Registrants may enter into contracts that provide certain indemnifications. The Registrants’ maximum
exposure under these arrangements is dependent on future claims that may be made against the Portfolios and, therefore, cannot be estimated;
however, based on experience, management considers the risk of loss from such claims remote.
NOTE 3 — INVESTMENT TRANSACTIONS
For the period ended June 30, 2026, the
cost of purchases and the proceeds from the sales of securities, excluding short-term and U.S. government securities, were as follows:
| | |
Purchases | | |
Sales | |
| Global
High Dividend Low Volatility | |
$ | 252,231,375 | | |
$ | 103,412,112 | |
| Growth
and Income | |
| 1,637,385,688 | | |
| 1,755,587,270 | |
| Intermediate
Bond | |
| 193,156,329 | | |
| 257,758,435 | |
| Small
Company | |
| 96,711,842 | | |
| 108,951,884 | |
U.S. government securities not included
above were as follows:
| | |
Purchases | | |
Sales | |
| Intermediate
Bond | |
$ | 352,539,707 | | |
$ | 322,163,546 | |
NOTE 4 — INVESTMENT MANAGEMENT FEES
The Portfolios have entered into an investment
management agreement (“Management Agreement”) with the Investment Adviser. The Investment Adviser has overall responsibility
for the management of the Portfolios. The Investment Adviser oversees all investment management and portfolio management services for
the Portfolios and assists in managing and supervising all aspects of the general day-to-day business activities and operations of the
Portfolios, including custodial, transfer agency, dividend disbursing, accounting, auditing, compliance and related services. This Management
Agreement compensates the Investment Adviser with a management fee, computed daily and payable monthly, based on the average daily net
assets of each Portfolio, at the following annual rates:
NOTES TO FINANCIAL STATEMENTS as of June 30, 2026 (Unaudited) (continued)
NOTE 4 — INVESTMENT MANAGEMENT FEES (continued)
| Portfolio | |
Fee |
| Global
High Dividend Low Volatility | |
0.56% on the first $500 million; |
| | |
0.53% on the next $500 million; |
| | |
0.51% thereafter |
| Government
Money Market | |
0.35% |
| Growth
and Income | |
0.600% on the first $5 billion; |
| | |
0.550% on the next $5 billion; |
| | |
0.525% thereafter |
| Intermediate
Bond | |
0.50% on first $4 billion; |
| | |
0.48% on next $3 billion; |
| | |
0.46% thereafter |
| Small
Company | |
0.75% |
Effective May 1, 2026, the Board approved the expiration
of the management fee waiver for Government Money Market. Prior to May 1, 2026, the Investment Adviser was contractually obligated to
waive a portion of the management fee equal to 0.045% on the first $5 billion and 0.070% thereafter of the Portfolio’s average daily
net assets. This waiver was not eligible for recoupment.
The Investment Adviser is contractually obligated
to waive the management fee it receives for advising Intermediate Bond in an amount equal to any advisory fee that Voya receives as a
result of any investment by Intermediate Bond into an affiliated exchange traded fund. Any fees waived or reimbursed are not eligible
for recoupment. Termination or modification of this obligation requires approval by the Board.
The Investment Adviser has entered into sub-advisory
agreements with Voya IM with respect to each Portfolio. Voya IM provides investment advice for the Portfolios and is paid by the Investment
Adviser based on the average daily net assets of each respective Portfolio. Subject to such policies as the Board or the Investment Adviser
may determine, Voya IM manages the Portfolios’ assets in accordance with each Portfolio’s investment objectives, policies,
and limitations.
NOTE 5 — DISTRIBUTION AND SERVICE FEES
Class ADV, Class
S, and Class S2 shares of the respective Portfolios are subject to a shareholder service and distribution plan or a distribution plan
(each a “Plan” and collectively, the “Plans”). Pursuant to the Plans, the Distributor is entitled to a payment
each month to compensate for expenses incurred in the distribution and promotion of the Portfolios’ shares, including expenses
incurred in printing prospectuses and reports used for sales purposes, expenses incurred in preparing and printing sales literature and
other such distribution related expenses, including any distribution or shareholder servicing fees
paid to securities dealers who have executed a
distribution agreement with the Distributor.
Under the Plans for Class ADV and Class S2 shares
of the respective Portfolios, the Distributor is paid an annual shareholder service fee at the rate of 0.25% of each Portfolio’s
average daily net assets attributable to its Class ADV and Class S2 shares. The Distributor is paid an annual distribution fee at the
rate of 0.25% of the Portfolio’s average daily net assets attributable to its Class ADV shares and the Distributor is paid an annual
distribution fee at the rate of 0.15% of the Portfolio’s average daily net assets attributable to its Class S2 shares. The Distributor
has contractually agreed to waive 0.05% of the distribution fee for Class ADV shares of Growth and Income so that the actual fee paid
by Class ADV shares of the Portfolio is an annual rate of 0.20%. This waiver is not eligible for recoupment. Termination or modification
of this waiver requires approval by the Board.
Under the Plan for Class S shares of the respective
Portfolios, Class S shares of the Portfolios pay the Distributor a fee calculated at an annual rate of 0.25% of the Portfolio’s
average daily net assets attributable to its Class S shares.
The Distributor and
the Investment Adviser have contractually agreed to waive a portion of their distribution and/or shareholder servicing fees and management
fees, as applicable, and to reimburse certain expenses to the extent necessary to assist Government Money Market in maintaining a yield
of not less than zero through May 1, 2027. There is no guarantee that the Portfolio will maintain such a yield. Management fees waived
or expenses reimbursed are subject to possible recoupment by the Investment Adviser, as applicable, within three years subject to certain
restrictions. In no event will the amount of the recoupment on any day exceed 20% of the yield (net of all expense) of the Portfolio
on that day. Distribution and shareholder servicing fees waived are not subject to recoupment. For the period ended June 30, 2026, there
were no amounts waived or reimbursed to assist the Portfolio in maintaining a yield of not less than zero. Termination or modification
of this obligation requires approval by the Board. Please
NOTES TO FINANCIAL STATEMENTS as of June 30, 2026 (Unaudited) (continued)
NOTE 5 — DISTRIBUTION AND SERVICE FEES (continued)
note that these waivers or reimbursements are in addition to
existing contractual expense limitations, if any.
NOTE 6 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
At June 30, 2026, the following direct or indirect, wholly-owned subsidiaries
of Voya Financial, Inc. owned more than 5% of the following Portfolios:
| Subsidiary | |
Portfolio | |
Percentage | |
| ReliaStar
Life Insurance Company | |
Global High Dividend
Low Volatility | |
| 28.13 | % |
| Voya
Institutional Trust Company | |
Government Money Market | |
| 6.74 | |
| | |
Growth and Income | |
| 5.39 | |
| | |
Intermediate Bond | |
| 23.50 | |
| | |
Small Company | |
| 6.24 | |
| Voya
Retirement Insurance and Annuity Company | |
Global High Dividend Low Volatility | |
| 55.34 | |
| | |
Government Money Market | |
| 89.59 | |
| | |
Growth and Income | |
| 68.82 | |
| | |
Intermediate Bond | |
| 60.11 | |
| | |
Small Company | |
| 93.35 | |
The Investment Adviser may direct the Portfolios’ Sub-Adviser
to use its best efforts (subject to obtaining best execution of each transaction) to allocate a Portfolio’s equity security transactions
through certain designated broker-dealers. The designated broker-dealer, in turn, will reimburse a portion of the brokerage commissions
to pay certain expenses of that Portfolio. Any amounts credited to the Portfolios are reflected as brokerage commission recapture on the
accompanying Statements of Operations.
The Portfolios have adopted a deferred compensation
plan (the “DC Plan”), which allows eligible independent directors/ trustees, as described in the DC Plan, to defer the receipt
of all or a portion of the directors’/trustees’ fees that they are entitled to receive from the Portfolios. For purposes of
determining the amount owed to the director/trustee under the DC Plan, the amounts deferred are invested in shares of the funds selected
by the director/trustee (the “Notional Funds”). When the Portfolios purchase shares of the Notional Funds, which are all advised
by Voya Investments, in amounts equal to the directors’/trustees’ deferred fees, this results in a Portfolio asset equal to
the deferred compensation liability. Such assets are included as a component of “Other assets” on the accompanying Statements
of Assets and Liabilities. Deferral of directors’/ trustees’ fees under the DC Plan will not affect net assets of the Portfolios,
and will not materially affect the Portfolios’
assets, liabilities or net investment income per share. Amounts
will be deferred until distributed in accordance with the DC Plan.
The Portfolios may pay per account fees to affiliates of Voya
Investments for recordkeeping services provided on certain assets. For the period ended June 30, 2026, the per account fees for affiliated
recordkeeping services paid by each Portfolio were as follows:
| Portfolio | |
Amount | |
| Global
High Dividend Low Volatility | |
$ | 243,821 | |
| Government
Money Market | |
| 521,832 | |
| Growth
and Income | |
| 1,729,958 | |
| Intermediate
Bond | |
| 592,148 | |
| Small
Company | |
| 229,155 | |
NOTE 7 — EXPENSE LIMITATION AGREEMENTS
The Investment Adviser has entered
into a written expense limitation agreement (“Expense Limitation Agreement”) with the following Portfolios whereby the
Investment Adviser has agreed to limit expenses, excluding interest, taxes, investment-related costs, leverage expenses,
extraordinary expenses, other expenses not incurred in the ordinary course of business, expenses of any counsel or other persons or
services retained by the Portfolio’s Board members who are not “interested persons,” as that term is defined in
the 1940 Act, and acquired fund fees and expenses to the levels listed below:
| | |
Class | | |
Class | | |
Class | | |
Class | | |
Class | |
| Portfolio | |
ADV | | |
I | | |
R6 | | |
S | | |
S2 | |
| Global High Dividend Low Volatility | |
| 1.10% | | |
| 0.60% | | |
| N/A | | |
| 0.85% | | |
| 1.00% | |
| Government Money Market | |
| N/A | | |
| 0.40% | | |
| N/A | | |
| N/A | | |
| N/A | |
| Growth and Income | |
| 1.27% | | |
| 0.67% | | |
| N/A | | |
| 0.92% | | |
| 1.07% | |
| Intermediate Bond | |
| 1.03% | | |
| 0.53% | | |
| N/A | | |
| 0.78% | | |
| 0.93% | |
| Small Company | |
| 1.36% | | |
| 0.86% | | |
| 0.86% | | |
| 1.11% | | |
| N/A | |
The Expense Limitation Agreements are contractual through May 1, 2027.
Termination or modification of these obligations requires approval by the Board.
NOTE 8 — LINE OF CREDIT
Effective June 8, 2026, the Portfolios, in addition
to certain other funds managed by the Investment Adviser, entered into a 364-day unsecured committed revolving line of credit agreement
(the "Credit Agreement") with The Bank of New York Mellon ("BNY") for an aggregate amount of $300,000,000 through
June 7, 2027. The proceeds may be used only to finance temporarily: (1) the purchase or sale of investment securities; or (2) the repurchase
or redemption of shares of the Portfolios or certain other funds managed by the Investment Adviser. The funds to which the line of credit
is available pay a commitment fee equal to 0.15% per annum on the daily unused portion of the committed line amount payable quarterly
in arrears. Prior to June 8, 2026, the predecessor line of credit was for an aggregate
NOTES TO FINANCIAL STATEMENTS as of June 30, 2026 (Unaudited) (continued)
NOTE 8 — LINE OF CREDIT (continued)
amount of $400,000,000 and the funds to which the
line of credit was available paid a commitment fee equal to 0.15% per annum on the daily unused portion of the committed line amount through
June 7, 2026.
Borrowings under the Credit Agreement accrue interest
at the federal funds rate plus a specified margin. Repayments generally must be made within 60 days after the date of a revolving credit
advance.
The following Portfolios utilized the line of credit during
the period ended June 30, 2026:
| | |
| | |
| | |
Approximate | |
| | |
| | |
Approximate | | |
Weighted | |
| | |
| | |
Average | | |
Average | |
| | |
| | |
Daily Balance | | |
Interest Rate | |
| | |
Days | | |
For Days | | |
For Days | |
| Portfolio | |
Utilized | | |
Utilized | | |
Utilized | |
| Global High Dividend Low | |
| | |
| | | |
| | |
| Volatility | |
1 | | |
$ | 3,682,000 | | |
| 4.62% | |
| Small Company | |
1 | | |
| 988,000 | | |
| 4.64 | |
NOTE 9 — CAPITAL SHARES
Transactions in capital shares and dollars were as follows:
| | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
Proceeds | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Net increase | |
| | |
from | | |
| | |
| | |
| | |
|
|
| | |
| | |
Shares | | |
Reinvestment | | |
| | |
| | |
(decrease) in | |
| | |
shares | | |
Reinvestment | | |
| | |
| | |
|
|
| | |
Shares | | |
issued in | | |
of | | |
Shares | | |
Shares | | |
shares | |
Shares | | |
issued in | | |
of | | |
Shares | | |
Shares | | |
Net increase |
|
| | |
sold | | |
merger | | |
distributions | | |
redeemed | | |
converted | | |
outstanding | |
sold | | |
merger | | |
distributions | | |
redeemed | | |
converted | | |
(decrease) |
|
Year or
period ended | |
# | | |
# | | |
# | | |
# | | |
# | | |
# | |
($) | | |
($) | | |
($) | | |
($) | | |
($) | | |
($) |
|
| Global High Dividend Low Volatility | | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| Class ADV | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
157,842 | | |
— | | |
31,198 | | |
(91,454 | ) | |
— | | |
97,586 | |
1,918,494 | | |
— | | |
382,842 | | |
(1,128,273 | ) | |
— | | |
1,173,063 |
|
| 12/31/2025 | |
99,526 | | |
— | | |
155,339 | | |
(212,483 | ) | |
— | | |
42,382 | |
1,215,802 | | |
— | | |
1,848,721 | | |
(2,561,685 | ) | |
— | | |
502,838 |
|
| Class I | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
12,766,675 | | |
— | | |
649,250 | | |
(870,710 | ) | |
— | | |
12,545,215 | |
153,314,895 | | |
— | | |
7,945,092 | | |
(10,762,866 | ) | |
— | | |
150,497,121 |
|
| 12/31/2025 | |
308,434 | | |
— | | |
1,628,306 | | |
(1,324,600 | ) | |
— | | |
612,140 | |
3,740,603 | | |
— | | |
19,359,729 | | |
(15,912,542 | ) | |
— | | |
7,187,790 |
|
| Class S | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
467,785 | | |
— | | |
77,074 | | |
(229,313 | ) | |
— | | |
315,546 | |
5,673,066 | | |
— | | |
950,207 | | |
(2,853,065 | ) | |
— | | |
3,770,208 |
|
| 12/31/2025 | |
496,247 | | |
— | | |
3,823,265 | | |
(29,736,332 | ) | |
— | | |
(25,416,820) | |
6,058,536 | | |
— | | |
45,712,769 | | |
(355,594,989 | ) | |
— | | |
(303,823,684) |
|
| Class S2 | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
164 | | |
— | | |
345 | | |
(470 | ) | |
— | | |
39 | |
2,000 | | |
— | | |
4,178 | | |
(5,767 | ) | |
— | | |
411 |
|
| 12/31/2025 | |
748 | | |
— | | |
1,819 | | |
(2,100 | ) | |
— | | |
467 | |
8,773 | | |
— | | |
21,375 | | |
(24,553 | ) | |
— | | |
5,595 |
|
| Government Money Market | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| Class I | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
49,751,480 | | |
— | | |
12,441,688 | | |
(170,222,121 | ) | |
— | | |
(108,028,953) | |
49,751,480 | | |
— | | |
12,441,688 | | |
(170,222,121 | ) | |
— | | |
(108,028,953) |
|
| 12/31/2025 | |
198,417,386 | | |
— | | |
34,774,048 | | |
(210,274,870 | ) | |
— | | |
22,916,564 | |
198,417,386 | | |
— | | |
34,774,048 | | |
(210,274,870 | ) | |
— | | |
22,916,564 |
|
| Growth and Income | | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| Class ADV | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
84,278 | | |
— | | |
124,707 | | |
(636,802 | ) | |
— | | |
(427,817) | |
1,796,989 | | |
— | | |
2,754,771 | | |
(13,948,544 | ) | |
— | | |
(9,396,784) |
|
| 12/31/2025 | |
224,470 | | |
— | | |
331,526 | | |
(691,275 | ) | |
— | | |
(135,279) | |
4,847,235 | | |
— | | |
7,030,401 | | |
(14,302,626 | ) | |
— | | |
(2,424,990) |
|
| Class I | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
1,772,210 | | |
— | | |
3,158,050 | | |
(6,735,327 | ) | |
— | | |
(1,805,067) | |
40,631,337 | | |
— | | |
74,119,428 | | |
(154,792,591 | ) | |
— | | |
(40,041,826) |
|
| 12/31/2025 | |
6,326,857 | | |
— | | |
8,102,447 | | |
(13,899,559 | ) | |
— | | |
529,745 | |
134,732,417 | | |
— | | |
182,020,114 | | |
(302,926,796 | ) | |
— | | |
13,825,735 |
|
| Class S | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
348,081 | | |
— | | |
61,256 | | |
(189,283 | ) | |
— | | |
220,054 | |
7,661,955 | | |
— | | |
1,359,264 | | |
(4,191,687 | ) | |
— | | |
4,829,532 |
|
| 12/31/2025 | |
467,827 | | |
— | | |
130,840 | | |
(440,351 | ) | |
— | | |
158,316 | |
9,683,054 | | |
— | | |
2,796,219 | | |
(9,055,591 | ) | |
— | | |
3,423,682 |
|
| Class S2 | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
623 | | |
— | | |
1,419 | | |
(5 | ) | |
— | | |
2,037 | |
12,846 | | |
— | | |
30,000 | | |
(94 | ) | |
— | | |
42,752 |
|
| 12/31/2025 | |
2,748 | | |
— | | |
3,243 | | |
(109 | ) | |
— | | |
5,882 | |
53,571 | | |
— | | |
66,055 | | |
(2,155 | ) | |
— | | |
117,471 |
|
| Intermediate Bond | | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| Class ADV | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
383,863 | | |
— | | |
337,904 | | |
(1,166,908 | ) | |
— | | |
(445,141) | |
4,174,172 | | |
— | | |
3,671,663 | | |
(12,685,194 | ) | |
— | | |
(4,839,359) |
|
| 12/31/2025 | |
626,541 | | |
— | | |
694,669 | | |
(1,934,536 | ) | |
— | | |
(613,326) | |
6,767,621 | | |
— | | |
7,531,079 | | |
(20,877,474 | ) | |
— | | |
(6,578,774) |
|
| Class I | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
2,048,377 | | |
— | | |
1,425,569 | | |
(4,784,912 | ) | |
— | | |
(1,310,966) | |
22,550,107 | | |
— | | |
15,658,239 | | |
(52,449,469 | ) | |
— | | |
(14,241,123) |
|
| 12/31/2025 | |
4,616,745 | | |
— | | |
2,853,808 | | |
(7,462,537 | ) | |
— | | |
8,016 | |
50,606,355 | | |
— | | |
31,283,674 | | |
(81,532,092 | ) | |
— | | |
357,937 |
|
| Class S | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
249,187 | | |
— | | |
116,569 | | |
(562,496 | ) | |
— | | |
(196,740) | |
2,716,557 | | |
— | | |
1,272,427 | | |
(6,135,932 | ) | |
— | | |
(2,146,948) |
|
| 12/31/2025 | |
590,383 | | |
— | | |
241,790 | | |
(1,209,350 | ) | |
— | | |
(377,177) | |
6,419,378 | | |
— | | |
2,633,632 | | |
(13,125,378 | ) | |
— | | |
(4,072,368) |
|
| Class S2 | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
51,483 | | |
— | | |
14,729 | | |
(98,418 | ) | |
— | | |
(32,206) | |
560,308 | | |
— | | |
160,040 | | |
(1,069,363 | ) | |
— | | |
(349,015) |
|
NOTES TO FINANCIAL STATEMENTS as of June 30, 2026 (Unaudited) (continued)
NOTE 9 — CAPITAL SHARES (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
Proceeds | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Net increase | |
| | |
from | | |
| | |
| | |
| | |
|
|
| | |
| | |
Shares | | |
Reinvestment | | |
| | |
| | |
(decrease) in | |
| | |
shares | | |
Reinvestment | | |
| | |
| | |
|
|
| | |
Shares | | |
issued in | | |
of | | |
Shares | | |
Shares | | |
shares | |
Shares | | |
issued in | | |
of | | |
Shares | | |
Shares | | |
Net increase |
|
| | |
sold | | |
merger | | |
distributions | | |
redeemed | | |
converted | | |
outstanding | |
sold | | |
merger | | |
distributions | | |
redeemed | | |
converted | | |
(decrease) |
|
Year or
period ended | |
# | | |
# | | |
# | | |
# | | |
# | | |
# | |
($) | | |
($) | | |
($) | | |
($) | | |
($) | | |
($) |
|
| Intermediate Bond (continued) | | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| Class S2 | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 12/31/2025 | |
170,677 | | |
— | | |
31,336 | | |
(253,948 | ) | |
— | | |
(51,935) | |
1,842,465 | | |
— | | |
339,733 | | |
(2,747,152 | ) | |
— | | |
(564,954) |
|
| Small Company | | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| Class ADV | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
8,110 | | |
— | | |
47,906 | | |
(48,531 | ) | |
— | | |
7,485 | |
105,901 | | |
— | | |
629,965 | | |
(632,514 | ) | |
— | | |
103,352 |
|
| 12/31/2025 | |
62,238 | | |
— | | |
125,359 | | |
(110,782 | ) | |
— | | |
76,815 | |
830,854 | | |
— | | |
1,396,502 | | |
(1,404,146 | ) | |
— | | |
823,210 |
|
| Class I | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
70,252 | | |
— | | |
806,997 | | |
(803,324 | ) | |
— | | |
73,925 | |
1,081,575 | | |
— | | |
12,209,863 | | |
(12,226,587 | ) | |
— | | |
1,064,851 |
|
| 12/31/2025 | |
56,419 | | |
— | | |
2,107,828 | | |
(3,063,704 | ) | |
— | | |
(899,457) | |
838,508 | | |
— | | |
26,769,416 | | |
(47,940,072 | ) | |
— | | |
(20,332,148) |
|
| Class R6 | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
6,429 | | |
— | | |
9,290 | | |
(78,023 | ) | |
— | | |
(62,304) | |
95,411 | | |
— | | |
140,832 | | |
(1,180,607 | ) | |
— | | |
(944,364 |
|
| 12/31/2025 | |
65,034 | | |
— | | |
92,957 | | |
(500,021 | ) | |
— | | |
(342,030) | |
896,058 | | |
— | | |
1,181,485 | | |
(7,202,354 | ) | |
— | | |
(5,124,811) |
|
| Class S | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| | |
|
|
| 6/30/2026 | |
9,465 | | |
— | | |
3,750 | | |
(2,809 | ) | |
— | | |
10,406 | |
139,916 | | |
— | | |
54,645 | | |
(41,584 | ) | |
— | | |
152,977 |
|
| 12/31/2025 | |
111,440 | | |
— | | |
538,697 | | |
(4,462,976 | ) | |
— | | |
(3,812,839) | |
1,535,102 | | |
— | | |
6,453,592 | | |
(62,564,114 | ) | |
— | | |
(54,575,420) |
|
NOTE 10 — UNFUNDED LOAN COMMITMENTS
Certain Portfolios may enter into credit
agreements, all or a portion of which may be unfunded. The Portfolios are obligated to fund these loan commitments at the borrower’s
discretion. Funded and unfunded portions of the credit agreements are presented in the Portfolio of Investments. At June 30, 2026, Intermediate
Bond Portfolio had the following unfunded loan commitments:
| | |
Unfunded | |
| | |
Loan | |
| Loan | |
Commitment | |
| Azuria
Water Solutions, Inc. Initial Delayed Draw | |
| | |
| Term
Loan | |
$ | 21,176 | |
| Prestige
Brands, Inc. Delayed Draw Term Loan | |
| 2,917 | |
| Watlow
Electric Manufacturing Co. 2026 Delayed | |
| | |
| Draw
Term Loan | |
| 30,739 | |
| | |
$ | 54,832 | |
NOTE 11 — SECURITIES LENDING
Under a Master Securities Lending Agreement (the
“Agreement”) with BNY, each Portfolio (except Government Money Market) can lend their securities to approved brokers, dealers
and other financial institutions. Loans are collateralized by cash and U.S. government securities. The collateral is equal to at least
105% of the market value of non-U.S. securities loaned and 102% of the market value of U.S. securities loaned. The market value of the
loaned securities is determined at Market Close of the Portfolios at their last sale price or official closing price on the principal
exchange or system on which they are traded and any additional collateral is delivered to the Portfolios on the next business day. The
cash collateral received is invested in approved investments as defined in the Agreement with BNY. The Portfolios bear the risk of loss
with respect to
the investment of collateral with the following
exception: BNY provides the Portfolios indemnification from loss with respect to the investment of collateral to the extent the cash collateral
is invested in overnight repurchase agreements.
Cash collateral received in connection with securities
lending is invested in cash equivalents, money market funds, repurchase agreements with maturities of not more than 99 days that are collateralized
with U.S. Government securities, or certain short-term investments that have a remaining maturity of 190 days or less (“Permitted
Investments”). Short-term investments include: securities, units, shares or other participations in short-term investment funds,
pools or trusts; commercial paper, notes, bonds or other debt obligations, certificates of deposit, time deposits and other bank obligations
and asset-backed commercial
NOTES TO FINANCIAL STATEMENTS as of June 30, 2026 (Unaudited) (continued)
NOTE 11 — SECURITIES LENDING (continued)
paper backed by diversified receivables
and repurchase-backed programs. Permitted Investments are subject to certain guidelines established by the Adviser regarding liquidity,
diversification, credit quality and average credit life/duration requirements. The securities purchased with cash collateral received
are reflected in the Portfolio of Investments under Short-Term Investments.
Generally, in the event of counterparty
default, the Portfolios have the right to use the collateral to offset losses incurred. The Agreement contains certain guarantees by BNY
in the event of counterparty default and/or a borrower’s failure to return a loaned security; however, there would be a potential
loss to the Portfolios in the event the Portfolios are delayed or prevented from exercising their right to dispose of the collateral.
Engaging in securities lending could have a leveraging effect, which may intensify the credit, market and other risks associated with
investing in a portfolio.
The following tables represent a summary
of each respective Portfolio’s securities lending agreements by counterparty which are subject to offset under the Agreement as
of June 30, 2026:
| Global High Dividend Low Volatility | |
| | |
| |
| | |
| | |
| |
| | |
Securities | | |
Cash Collateral | | |
| |
| Counterparty | |
Loaned at Value | | |
Received(1) | | |
Net Amount | |
| BofA Securities Inc | |
$ | 61,251 | | |
$ | (61,251 | ) | |
$ | — | |
| Citigroup Global | |
| | | |
| | | |
| | |
| Markets Limited | |
| 985,533 | | |
| (985,533 | ) | |
| — | |
| Merrill Lynch | |
| | | |
| | | |
| | |
| International | |
| 985,534 | | |
| (985,534 | ) | |
| — | |
| State Street Bank and | |
| | | |
| | | |
| | |
| Trust Company | |
| 816,772 | | |
| (816,772 | ) | |
| — | |
| Total | |
$ | 2,849,090 | | |
$ | (2,849,090 | ) | |
$ | — | |
| (1) | Cash
collateral with a fair value of $2,999,874 has been pledged by the counterparty and received in connection with the above securities
lending transactions. Excess cash collateral received from the individual counterparty is not shown for financial reporting purposes. |
| Growth and Income | |
| | |
| |
| | |
| | |
| |
| | |
Securities | | |
Cash Collateral | | |
| |
| Counterparty | |
Loaned at Value | | |
Received(1) | | |
Net Amount | |
| UBS AG | |
$ | 12,195,715 | | |
$ | (12,195,715 | ) | |
$ | — | |
| Total | |
$ | 12,195,715 | | |
$ | (12,195,715 | ) | |
$ | — | |
| (1) | Cash
collateral with a fair value of $12,444,277 has been pledged by the counterparty and received in connection with the above securities
lending transactions. Excess cash collateral received from the individual counterparty is not shown for financial reporting purposes. |
| Intermediate Bond | |
| | |
| |
| | |
| | |
| |
| | |
Securities | | |
Cash Collateral | | |
| |
| Counterparty | |
Loaned at Value | | |
Received(1) | | |
Net Amount | |
| Barclays Bank PLC | |
$ | 553,016 | | |
$ | (553,016 | ) | |
$ | — | |
| BMO Capital Markets
Corp |
|
|
2,910,035 |
|
|
|
(2,910,035 |
) |
|
|
— |
|
| BNP Paribas | |
| 366,607 | | |
| (366,607 | ) | |
| — | |
| | |
Securities | | |
Cash Collateral | | |
| |
| Counterparty | |
Loaned at Value | | |
Received(1) | | |
Net Amount | |
| BNP Paribas Prime Brokerage Intl Ltd | |
$ | 933,723 | | |
$ | (933,723 | ) | |
$ | — | |
| BofA Securities Inc | |
| 291,003 | | |
| (291,003 | ) | |
| — | |
| Canadian Imperial Bank of Commerce | |
| 255,369 | | |
| (255,369 | ) | |
| — | |
| Citigroup Global Markets Inc. | |
| 332,709 | | |
| (332,709 | ) | |
| — | |
| Daiwa Capital Markets America Inc. | |
| 88,898 | | |
| (88,898 | ) | |
| — | |
| Deutsche Bank Securities Inc. | |
| 429,063 | | |
| (429,063 | ) | |
| — | |
| Goldman, Sachs & Co. LLC | |
| 209,587 | | |
| (209,587 | ) | |
| — | |
| J.P. Morgan Securities LLC | |
| 253,844 | | |
| (253,844 | ) | |
| — | |
| Mizuho Securities USA LLC. | |
| 309,578 | | |
| (309,578 | ) | |
| — | |
| Morgan Stanley & Co. LLC | |
| 779,663 | | |
| (779,663 | ) | |
| — | |
| MUFG Securities Americas Inc. | |
| 11,020 | | |
| (11,020 | ) | |
| — | |
| National Bank Financial Inc | |
| 271,625 | | |
| (271,625 | ) | |
| — | |
| Nomura Securities International, Inc. | |
| 527,279 | | |
| (527,279 | ) | |
| — | |
| TD Securities (USA) Inc. | |
| 2,088,051 | | |
| (2,088,051 | ) | |
| — | |
| TD Securities Inc. | |
| 390,500 | | |
| (390,500 | ) | |
| — | |
| Truist Securities INC | |
| 188,631 | | |
| (188,631 | ) | |
| — | |
| Total | |
$ | 11,190,201 | | |
$ | (11,190,201 | ) | |
$ | — | |
| (1) | Cash
collateral with a fair value of $11,480,135 has been pledged by the counterparty and received in connection with the above securities
lending transactions. Excess cash collateral received from the individual counterparty is not shown for financial reporting purposes. |
| Small Company | |
| | |
| |
| | |
Securities | | |
Cash Collateral | | |
| |
| Counterparty | |
Loaned at Value | | |
Received(1) | | |
Net Amount | |
| Barclays Capital Inc. | |
$ | 646,368 | | |
$ | (646,368 | ) | |
$ | — | |
| BMO Capital Markets Corp | |
| 490,742 | | |
| (490,742 | ) | |
| — | |
| BNP Paribas Prime Brokerage Intl Ltd | |
| 7,816 | | |
| (7,816 | ) | |
| — | |
| BNP Paribas Securities Corp. | |
| 278,330 | | |
| (278,330 | ) | |
| — | |
| BofA Securities Inc | |
| 263,467 | | |
| (263,467 | ) | |
| — | |
| Cantor Fitzgerald & Co | |
| 996 | | |
| (996 | ) | |
| — | |
| HSBC Bank PLC | |
| 10 | | |
| (10 | ) | |
| — | |
| Jefferies LLC | |
| 40,210 | | |
| (40,210 | ) | |
| — | |
| Morgan Stanley & Co. LLC | |
| 977,252 | | |
| (977,252 | ) | |
| — | |
| Scotia Capital (USA) INC | |
| 557,670 | | |
| (557,670 | ) | |
| — | |
| State Street Bank and Trust Company | |
| 348 | | |
| (348 | ) | |
| — | |
| TD Securities (USA) Inc. | |
| 447,464 | | |
| (447,464 | ) | |
| — | |
NOTES TO FINANCIAL STATEMENTS as of June 30, 2026 (Unaudited) (continued)
NOTE 11 — SECURITIES LENDING (continued)
| Counterparty | |
Securities
Loaned at Value | | |
Cash Collateral
Received(1) | | |
Net Amount | |
| UBS AG | |
$ | 1,809,156 | | |
$ | (1,809,156 | ) | |
$ | — | |
| Wells Fargo Securities LLC | |
| 1,638,888 | | |
| (1,638,888 | ) | |
| — | |
| Total | |
$ | 7,158,717 | | |
$ | (7,158,717 | ) | |
$ | — | |
| (1) | Cash
collateral with a fair value of $7,362,499 has been pledged by the counterparty and received in connection with the above securities
lending transactions. Excess cash collateral received from the individual counterparty is not shown for financial reporting purposes. |
NOTE 12 — FEDERAL INCOME TAXES
The amount of distributions from net investment
income and net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from GAAP
for investment companies. These book/tax differences may be either temporary or permanent. Permanent differences are reclassified within
the capital accounts based on their U.S. federal tax-basis treatment; temporary differences are not reclassified. Key differences include
the treatment of short-term capital gains, foreign currency transactions, futures contracts, income from passive foreign investment companies
(PFICs), in-kind sales, paydowns, straddle loss deferrals, swaps and wash sale deferrals.
Dividends paid by the Portfolios from net investment
income and distributions of net realized short-term capital gains are, for U.S. federal income tax purposes, taxable as ordinary income
to shareholders.
The tax composition of dividends and distributions to shareholders was
as follows:
| | |
Year Ended | | |
Year Ended | |
| | |
December 31, 2025 | | |
December 31, 2024 | |
| | |
Ordinary | | |
Long-term | | |
Ordinary | | |
Long-term | |
| | |
Income | | |
Capital Gains | | |
Income | | |
Capital Gains | |
| Global High Dividend Low | |
| | | |
| | | |
| | | |
| | |
| Volatility | |
$ | 21,198,963 | | |
$ | 45,743,631 | | |
$ | 15,234,189 | | |
$ | 13,578,307 | |
| Government Money Market | |
| 34,774,048 | | |
| — | | |
| 39,872,512 | | |
| — | |
| Growth and Income | |
| 38,212,112 | | |
| 153,804,836 | | |
| 44,698,285 | | |
| 285,396,830 | |
| Intermediate Bond | |
| 41,790,385 | | |
| — | | |
| 81,348,892 | | |
| — | |
| Small Company | |
| 35,800,995 | | |
| — | | |
| 11,320,785 | | |
| — | |
The tax-basis components of distributable earnings and the capital loss
carryforwards which may be used to offset future realized capital gains for U.S. federal income tax purposes as of December 31, 2025,
were:
| | |
Undistributed | | |
Undistributed | | |
Unrealized | | |
| | |
| | |
Total | |
| | |
Ordinary | | |
Long-term | | |
Appreciation/ | | |
Capital Loss Carryforwards | | |
Distributable | |
| | |
Income | | |
Capital Gains | | |
(Depreciation) | | |
Amount | | |
Character | | |
Earnings/(Loss) | |
| Global High Dividend Low Volatility | |
$ | 2,356,714 | | |
$ | 5,648,462 | | |
$ | 23,319,222 | | |
$ | — | | |
| — | | |
$ | 31,324,398 | |
| Government Money Market | |
| 35,090 | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 35,090 | |
| Growth and Income | |
| 12,620,775 | | |
| 65,670,413 | | |
| 714,953,566 | | |
| — | | |
| — | | |
| 793,244,754 | |
| Intermediate Bond | |
| 3,077,208 | | |
| — | | |
| (25,973,977 | ) | |
| (50,329,545 | ) | |
| Short-term | | |
| (402,149,591 | ) |
| | |
| | | |
| | | |
| | | |
| (328,923,277 | ) | |
| Long-term | | |
| | |
| | |
| | | |
| | | |
| | | |
$ | (379,252,822 | )* | |
| | | |
| | |
| Small Company | |
| 13,033,435 | | |
| — | | |
| (804,918 | ) | |
| — | | |
| — | | |
| 12,228,517 | |
* Utilization
of these capital losses is subject to annual limitations under Section 382 of the Internal Revenue Code.
The Portfolios’ major tax jurisdictions are U.S. federal, Arizona
state, and Massachusetts state.
NOTES TO FINANCIAL STATEMENTS as of June 30, 2026 (Unaudited) (continued)
NOTE 12 — FEDERAL INCOME TAXES (continued)
As of June 30, 2026, no provision for income tax
is required in the Portfolios' financial statements as a result of tax positions taken on federal and state income tax returns for open
tax years. The Portfolios' federal and state income and federal excise tax returns for tax years for which the applicable statutes of
limitations have not expired are subject to examination by the Internal Revenue Service and state department of revenue. Generally, the
preceding four tax years remain subject to examination by these jurisdictions.
NOTE 13 — MARKET DISRUPTION AND GEOPOLITICAL RISK
A Portfolio is subject to the risk that geopolitical
events will disrupt securities markets and adversely affect global economies and markets. Due to the increasing interdependence among
global economies and markets, conditions in one country, market, or region might adversely impact markets, issuers and/or foreign exchange
rates in other countries, including the United States. Wars, terrorism, global health crises and pandemics, trade disputes, tariffs, export
controls, industrial policy measures, natural and environmental disasters, disruptions to critical infrastructure, cybersecurity events,
sanctions, trade restrictions, and other market, economic, political, or regulatory developments, rapid technological developments (such
as artificial intelligence technologies), and other geopolitical events have led, and may continue to lead, to increased market volatility
and may have adverse short- or long-term effects on U.S. and global economies and markets, generally. Such events may result in market
volatility, exchange suspensions and closures, declines in global financial markets, higher default rates, supply chain disruptions, economic
downturns, capital controls or trading restrictions, and other adverse market or economic effects. Pandemics and other disruptions may
also create challenges for real estate markets, including lower occupancy rates, decreased lease payments, defaults, and foreclosures,
among other consequences. Systemic market dislocations and other changes in non−U.S. and domestic economic, social, and political
conditions could adversely affect individual issuers or related groups of issuers, securities markets, interest rates, credit ratings,
inflation, investor sentiment, and other factors affecting the value of a Portfolio’s investments. Armed conflicts, military actions,
political instability, civil unrest, regime changes, and other geopolitical events in various regions of the world, and may continue to
result, in sanctions, market disruptions, declines in regional and global stock markets, unusual volatility in global commodity markets,
and disruptions to energy production, transportation, or supply through strategic waterways or other key shipping routes, any of which
could adversely affect the value of investments, including beyond direct exposure to issuers in the affected regions. The escalation or
expansion of hostilities, including the involvement of additional nations, could introduce further uncertainty and volatility in global
energy,
commodity, and financial markets. The extent and
duration of these conflicts, related sanctions or governmental action in response to these conflicts (such as capital controls or trading
restrictions), and resulting market disruptions are impossible to predict but could be substantial. Financial institutions, including
U.S. domestic banks and non−U.S. banks, may experience financial difficulties or failures, and there can be no certainty that regulatory
or governmental actions taken to limit the effects of those difficulties or failures on other financial institutions or on the U.S. or
non−U.S. economies generally will be successful. Any of these occurrences could disrupt the operations of a Portfolio and of a Portfolio's
service providers, counterparties, or other organizations on which it relies. Recent technological developments in, and the increasingly
widespread use of, artificial intelligence, including machine learning technology and generative artificial intelligence (“AI”),
may pose risks to a Portfolio. For instance, the economy may be significantly impacted by the advanced development and increased regulation
of AI. As AI is used more widely, the profitability and growth of Portfolio holdings may be impacted, which could significantly impact
the overall performance of a Portfolio. The legal and regulatory frameworks within which AI operates continue to rapidly evolve, and it
is not possible to predict the full extent of current or future risks related thereto.
NOTE 14 — SEGMENT REPORTING
In November 2023, the FASB issued Accounting Standards
Update (“ASU”), ASU 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures, which aims
to improve reportable segment disclosure requirements, primarily through enhanced disclosures about segment expenses. Adoption of ASU
2023-07, impacts financial statement disclosure only and did not affect a Portfolio’s financial position or operating results.
Topic 280 defines an operating segment as a component
of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results
that are regularly reviewed by the chief operating decision maker (“CODM”) to assess performance and make resource allocation
decisions. Each Portfolio has one operating segment that derives its income from earnings on its investments. The Product Review Committee
(the “Committee”) of the Investment Adviser and its affiliates is deemed to be the CODM. The Committee is comprised of
NOTES TO FINANCIAL STATEMENTS as of June 30, 2026 (Unaudited) (continued)
NOTE 14 — SEGMENT REPORTING (continued)
executive leaders and it reviews the
operating results of a Portfolio holistically. The CODM considers changes in net assets from operations, expense ratios, total returns
and portfolio composition to make resource allocation decisions. Detailed financial information regarding each Portfolio is disclosed
within these financial statements with total assets and liabilities disclosed on the Statement of Assets and Liabilities, investments
held on the Portfolio of Investments, results of operations on the Statement of Operations and other information about each Portfolio's
performance, including total return, portfolio turnover and expense ratios within the Financial Highlights.
NOTE 15 — OTHER ACCOUNTING PRONOUNCEMENT
The Portfolios have adopted the provisions
of Financial Accounting Standards Board Accounting Standards Update 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740): Improvements
to Income Tax Disclosures. ASU 2023-09 enhances income tax disclosures, including providing specific categories in rate reconciliation
and income taxes paid. Upon evaluation, the adoption of the new accounting standard does not materially impact the financial statement
amounts or disclosures.
NOTE 16 — SUBSEQUENT EVENTS
Strategy
change: At
its May 2026 meeting, the Board approved disclosure modifications for Intermediate Bond relating to investments in commercial mortgage
loans and direct lending. The disclosure modifications became effective on July 1, 2026 through a reprint of the Portfolio's Statement
of Additional Information.
Dividends:
Subsequent to June 30, 2026, the Portfolios declared dividends and distributions
of:
| | |
PER SHARE AMOUNTS | | |
| |
|
| | |
Net | | |
| | |
| | |
| |
|
| | |
Investment | | |
Short-term Capital | | |
Long-term Capital | | |
| |
|
| | |
Income | | |
Gains | | |
Gains | | |
Payable Date | |
Record Date |
| Global High Dividend Low Volatility | |
| | | |
| | | |
| | | |
| |
|
| Class ADV | |
$ | 0.0654 | | |
$ | - | | |
$ | - | | |
July 1, 2026 | |
June 30, 2026 |
| Class I | |
$ | 0.0808 | | |
$ | - | | |
$ | - | | |
July 1, 2026 | |
June 30, 2026 |
| Class S | |
$ | 0.0732 | | |
$ | - | | |
$ | - | | |
July 1, 2026 | |
June 30, 2026 |
| Class S2 | |
$ | 0.0689 | | |
$ | - | | |
$ | - | | |
July 1, 2026 | |
June 30, 2026 |
| Government Money Market | |
| | | |
| | | |
| | | |
| |
|
| Class I | |
$ | 0.0028 | | |
$ | - | | |
$ | - | | |
July 31, 2026 | |
Daily |
| Intermediate Bond | |
| | | |
| | | |
| | | |
| |
|
| Class ADV | |
$ | 0.0388 | | |
$ | - | | |
$ | - | | |
July 31, 2026 | |
Daily |
| Class I | |
$ | 0.0438 | | |
$ | - | | |
$ | - | | |
July 31, 2026 | |
Daily |
| Class S | |
$ | 0.0412 | | |
$ | - | | |
$ | - | | |
July 31, 2026 | |
Daily |
| Class S2 | |
$ | 0.0396 | | |
$ | - | | |
$ | - | | |
July 31, 2026 | |
Daily |
The Portfolios have evaluated events occurring
after the Statements of Assets and Liabilities date through the date that the financial statements were issued (“subsequent events”),
to determine whether any subsequent events necessitated adjustment to or disclosure in the financial statements. Other than the above,
no such subsequent events were identified.
