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 10/31/24 | 1 Month | 3 Month | YTD | 1yr | 3yr | 5yr | 10yr | Since Inception (7/01/20) |
|---|---|---|---|---|---|---|---|---|
| Gross | -2.23 | 0.63 | 2.69 | 11.10 | -1.59 | - | - | -0.52 |
| Net | -2.36 | 0.26 | 1.42 | 9.46 | -3.04 | - | - | -2.10 |
| Index* | -2.48 | 0.25 | 1.86 | 10.55 | -2.20 | - | - | -1.60 |
* 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
Voya Core Plus Fixed Income SMA Quarterly Commentary
Date: September 30, 2024
Approved For: Public Use Material
Voya Core Plus Fixed Income SMA Strategy Brief
Date: September 30, 2024
Approved For: Public Use Material
Voya Core Plus Fixed Income SMA Representative Account
Date: January 26, 2024
Approved For: Financial Professional or Qualified Institutional Investor Use Only
Investment Team
Eric Stein, CFA
Head of Investments and CIO of Fixed Income
Years of Experience: 21
Years with Voya: 1
Sean Banai, CFA
Head of Multi-Sector
Years of Experience: 25
Years with Voya: 25
Rajen Jadav, CFA
Portfolio Manager
Years of Experience: 27
Years with Voya: 5
Dave Goodson
Head of Securitized
Years of Experience: 28
Years with Voya: 22
Randy Parrish, CFA
Head of Public Credit
Years of Experience: 34
Years with Voya: 23
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.