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Voya Core Plus Fixed Income SMA

Approach

The Core Plus Fixed Income strategy employs a total return approach, investing across the full spectrum of the fixed income market, including up to 20% in below investment grade securities.

Investment Philosophy

We believe market complexity, investor segmentation and the inefficiencies of fixed income markets create a rich opportunity set to invest across a broad fixed income universe to generate outperformance.

The following key beliefs underpin our investment philosophy:

  • Security selection is a significant driver of risk and returns
  • Nimble sector and sub-sector allocations capture relative value
  • Risk management is critical throughout the entire investment process

Investment Process

The strategy invests across primarily U.S. fixed income universe via individual securities and completion vehicles. Sectors include investment grade corporates, U.S. Treasuries and agencies, senior bank loans, securitized credit, agency mortgages, and emerging market debt.

  • Typical number of bonds: 10-40
  • Individual bonds: BBB- at time of purchase
  • Maximum 50% total allocation to completion vehicles; typically used to gain diversified exposure to less accessible sectors, including senior loans, emerging markets debt, and securitized assets
  • Maximum 20% total allocation to below investment grade corporates

Portfolio Details

The strategy invests across primarily U.S. fixed income universe via individual securities and completion vehicles. Sectors include investment grade corporates, U.S. Treasuries and agencies, senior bank loans, securitized credit, agency mortgages, and emerging market debt.

  • Typical number of bonds: 10-40
  • Individual bonds: BBB- at time of purchase
  • Maximum 50% total allocation to completion vehicles; typically used to gain diversified exposure to less accessible sectors, including senior loans, emerging markets debt, and securitized assets
  • Maximum 20% total allocation to below investment grade corporates

Performance

Performance

As of 11/30/241 Month3 MonthYTD1yr3yr5yr10yrSince Inception (7/01/20)
Gross1.200.183.937.92-1.27---0.24
Net1.08-0.192.526.33-2.73---1.82
Index*1.06-0.132.936.88-1.95---1.33

* Bloomberg U.S. Aggregate Bond Index

Past performance does not guarantee future results.

Periods greater than one year are annualized. Performance data is considered final unless indicated as preliminary. Monthly performance is based on full GIPS Composite returns. Access the GIPS page for full composite details.

"Gross Returns" are presented before the deduction of transaction costs and should be used as Supplemental Information only. "Net Returns" are calculated by subtracting a hypothetical maximum total wrap fee (estimated at 1.50% per annum) from the monthly "pure" gross-of-fee returns. For periods from January 2007 to June 2021 the hypothetical maximum fee was 2.00% per annum. The total wrap fee includes transaction costs, portfolio management, investment advisory, custodial and other administrative costs. Wrap fees vary amongst brokerage firms and may be negotiated based on account size and other factors. The hypothetical maximum total wrap fee used is deemed to be the maximum fee charged to any composite account but we cannot guarantee accuracy. More information about fees can be found in the Form ADV Part II of Voya Investment Management Co.

Literature

Investment Team

Eric Stein, CFA

Head of Investments and CIO of Fixed Income

Years of Experience: 21

Years with Voya: 1

Eric Stein is the head of investments and chief investment officer of fixed income at Voya Investment Management. As head of investments with broad responsibility for Voya IM’s public markets platforms, Eric leads teams of investment professionals across fixed income, multi-asset strategies and solutions, income and growth and equities. As CIO of fixed income, he is also directly responsible for oversight of the portfolio management of the fixed income platform and leadership of the fixed income investment professionals. Prior to Voya, Eric was chief investment officer for fixed income at Eaton Vance and Morgan Stanley Investment Management, where he was responsible for overseeing over 275 investment professionals managing strategies with approximately $200 billion in assets under management across the fixed income spectrum for institutions and individual investors worldwide. He previously was co-head of the global macro/emerging market debt group at Eaton Vance. Eric earlier worked on the Markets Desk at the Federal Reserve Bank of New York. Eric earned a BS from Boston University and an MBA from the University of Chicago Booth School of Business. He is a member of the Council on Foreign Relations and a CFA ® Charterholder.
Sean Banai

Sean Banai, CFA

Head of Multi-Sector

Years of Experience: 25

Years with Voya: 25

Sean Banai is head of multi-sector for the fixed income platform at Voya Investment Management. Previously, Sean was a senior portfolio manager and before that head of quantitative research for proprietary fixed income. Prior to joining the firm in 1999, he was a partner in a private sector company. Sean received a BA and an MS in actuarial science from Georgia State University. He holds the Chartered Financial Analyst® designation.

Rajen Jadav, CFA

Portfolio Manager

Years of Experience: 27

Years with Voya: 5

Raj Jadav is a portfolio manager at Voya Investment Management. Prior to joining Voya, Raj was a senior product specialist at Allianz Global Investors where he was responsible for covering and supporting sales and distribution of the global fixed income team’s product offering in North America. Prior to that, Raj was a portfolio manager at AllianceBernstein where he held various positions managing US multi-sector, US TIPS, stable value, global multi-sector and municipal money market portfolios. Raj earned a MA in economics from New York University and a BS in business management and economics from SUNY at Stony Brook. Raj is a CFA® Charterholder.
Dave Goodson

Dave Goodson

Head of Securitized

Years of Experience: 28

Years with Voya: 22

Dave Goodson is a managing director, head of securitized fixed income and a senior portfolio manager for non-agency and agency mortgage-backed securities, commercial mortgage-backed securities and asset-backed securities strategies at Voya Investment Management. Prior to joining Voya, he was a principal at an independent investment bank focused on asset-backed commercial paper transactions. Previously, Dave began his career as a vice president in Wachovia Securities’ asset-backed finance group, marketing and executing securitizations for the bank’s corporate clients. He earned a BS in management from the Georgia Institute of Technology
Randy Parrish

Randy Parrish, CFA

Head of Public Credit

Years of Experience: 34

Years with Voya: 23

Randy Parrish is a managing director and head of public credit at Voya Investment Management, overseeing the investment grade, emerging market and leveraged credit teams. Previously at Voya, Randy was head of high yield and served as a portfolio manager and analyst on the high yield team. Prior to joining Voya, he was a corporate banker in leveraged finance with SunTrust Bank and predecessors to Bank of America. Randy earned a BBA in business administration from the University of Georgia and is a CFA® Charterholder.

Disclosures

Principal Risk

The principal risks are generally those attributable to bond investing. Holdings are subject to market, issuer, credit, prepayment, extension, and other risks, and their values may fluctuate. Market risk is the risk that securities may decline in value due to factors affecting the securities markets or particular industries. Issuer risk is the risk that the value of a security may decline for reasons specific to the issuer, such as changes in its financial condition. The strategy may invest in mortgage-related securities, which can be paid off early if the borrowers on the underlying mortgages pay off their mortgages sooner than scheduled. If interest rates are falling, the strategy will be forced to reinvest this money at lower yields. Conversely, if interest rates are rising, the expected principal payments will slow, thereby locking in the coupon rate at below market levels and extending the security’s life and duration while reducing its market value. High yield bonds carry particular market risks and may experience greater volatility in market value than investment grade bonds. Foreign investments could be riskier than U.S. investments because of exchange rate, political, economics, liquidity, and regulatory risks. Additionally, investments in emerging market countries are riskier than other foreign investments because the political and economic systems in emerging market countries are less stable.

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