Special Update: Comments on Exposure to Russia and Ukraine in Voya Multi-Sector Fixed Income Strategies

Special Update: Comments on Exposure to Russia and Ukraine in Voya Multi-Sector Fixed Income Strategies

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The devastating events that continue to unfold in the conflict between Ukraine and Russia have led to steep price declines in both countries’ financial markets.

February 2022 debt market performance
JP Morgan EMBI Global Diversified Index
February 2022 debt market performance

At 2/28/2022. Source: JP Morgan.

Ukraine has suffered significant declines in market prices as a direct consequence of the military invasion by Russian troops. Meanwhile, Russian markets have suffered even more in the wake of extraordinary sanctions and restrictions imposed by an array of countries. As with everyone around the world, we are monitoring the situation very closely. Trading conditions remain challenging amidst a very fluid environment, and many securities are priced at stressed levels, which compels us to hold current positions.

Our Core Plus Strategies had modest allocations prior to current events (ranging from 40–60 bps as of 1/31/22), and changes in our positions beyond the impact from market performance have been de minimis.

Our Unconstrained Strategies also had small allocations prior to current events (ranging from 50–100 bps as of 1/31/22), and changes in our positions beyond the impact from market performance have been de minimis.

Our Short Duration Strategies did not have allocations to either Russia or Ukraine.

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Source: JP Morgan and Voya Investment Management

The information contained in this document has been prepared solely for informational purposes and is not an offer or invitation to buy or sell any security or to participate in any trading activity. This document is intended only for professional investors and describes a strategy only. Some material shown is compiled from third party sources thought to be reliable, but accuracy and completeness cannot be guaranteed. Any opinions expressed herein reflect our judgment at this date and are subject to change without notice. Neither Voya Investment Management nor any other company or unit belonging to Voya Financial, nor any of its officers, directors, or employees accept any liability or responsibility in respect to the information or any recommendations expressed herein. No liability is accepted for any losses sustained by readers as a result of using this publication or basing decisions on it. The value of your investments may rise or fall. Past performance is not indicative of future results. Investments involve risk. The primary risks of investing in market based securities include, but are not limited to, credit risk (the risk that a borrower may default in the payment of interest and/or principal on its loans), interest rate risk (the risk that the yield on an investment will rise and fall in response to changes in market rates of interest), and market risk (the risk that the value of an investment will rise or fall in response to general economic conditions and events).

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