A new survey from Voya Investment Management has found that “sponsors are far less sanguine than advisers about participants’ retirement readiness,” PlanAdviser reports. Additionally, sponsors “do not always recognize the services that advisers provide, potentially leading to confusion about what benefits they receive from the fees they pay,” Voya found, meaning that advisers should “do a better job of communicating their value proposition.”
Voya Investment Management Asset Allocation Strategist Timothy Kearney was on CNBC offering insights to June payroll numbers, which could impact the Federal Reserve interest rate decision later this month. Kearney said he was not anticipating a 50 basis point cut, as “the market was well ahead of itself.”
Voya Investment Management Head of Asset Allocation Barbara Reinhard spoke with U.S. News & World Report about retirees increasing the amount of risk in their portfolio, as they seek to “maintain purchasing power for 30-plus years while not taking so much risk” that they leave themselves exposed. According to Reinhard, “The riskiest day in your entire financial life is the day you retire. The day you retire you need to have the single longest longevity on your assets to be able to sustain you.”
CNN reports that investors have begun to look beyond long-term government bonds for yield as speculation grows that the Federal Reserve will reduce interest rates later this month. Voya Financial Chief Investment Officer of Fixed Income Matt Toms believes investors looking for good opportunities should consider some high yield or junk bonds, especially those with B or BB ratings which have outperformed their peers in recent weeks.
Tim Kearney, Multi-Asset Market Strategist at Voya Investment Management, told Bloomberg Markets: Americas that trade and the Fed are driving his outlook right now. With regard to asset classes, he said: “We think that there’s going to be continuation of the trade discussions, and that will keep equity markets and risk assets with a little bit of a lift following into the Fed a month later.”
Matt Toms, Chief Investment Officer, Fixed Income at Voya, spoke with Institutional Investor Magazine “about what fixed income investors should be watchful of as part two of 2019 gets underway.”
Bloomberg reports “AbbVie Inc.’s $63 billion deal for Allergan Plc will take the company’s debt burden to a level that can rival some junk-rated companies.” Voya Investment Management’s Head of Investment-Grade Credit Travis King said, “Debt is cheap so it makes sense from their perspective, and rating agencies are giving them the OK to do that.”
Bloomberg reported “as the Federal Reserve moves closer to expanding the money supply, corporate bond investors are snatching up notes and taking more risk – but not too much more.” Bloomberg said “prices on the lowest-rated investment-grade bonds are jumping, as are the highest-rated junk bonds. While high-yield investors are still favoring relatively safer securities, those that invest in high-grade are reaching for yield in the riskiest part of that market.” Travis King, head of Investment-Grade Credit at Voya Investment Management, said: “It’s been all buyers.
Voya Investment Management Managing Director and Head of Insurance Solutions John Simone was quoted throughout an A.M. Best article looking at how large asset managers and insurers are planning for a riskier future as the warning signs of an impending recession mount.
Pensions & Investments reports institutional asset owners such as insurance companies “continue to seek new sources of alpha in alternative investments.” As yields on core fixed income assets have fallen in recent years as interest rates decline, insurers have turned to real estate, hedge funds, and other alternative classes, though those teams are often outside the company’s traditional core of expertise.