Ignites spoke with Voya Investment Management CEO Christine Hurtsellers on the impact of the pandemic on Voya’s distribution and sales teams. Hurtsellers said that, as the pandemic has carried on, it has made establishing relationships with clients “harder and harder.” At the same time, Hurtsellers said the new challenges “massively accelerated our digitization.”
Voya Investment Management has named Vincent Costa Co-Chief Investment Officer for Equities effective Jan. 1, according to a statement. Costa “will work closely with Michael Pytosh, who has been CIO of equities since 2017 and head of equities since 2010, the release noted.” Voya spokesman Kristopher Kagel “confirmed by email that Mr. Costa will also retain his current positions as head of the quantitative equity team and portfolio manager in Voya’s large-cap value strategy group.” Voya “also named James Dorment and Kristy Finnegan as co-heads of fundamental research in the equities platform, both newly created positions. Both Mr. Dorment and Ms. Finnegan will keep their portfolio management responsibilities on the value and growth strategies teams, respectively, the release added.”
American Banker reported that, for its Most Powerful Women program, it has “chosen some specific types of roles that have taken on outsize importance in recent times and, within each category, highlighted a few extraordinary female leaders who stand out.” In the Most Powerful Women in ESG category, Voya Investment Management CEO Christine Hurtsellers is listed among the women who “are on the forefront and effecting change at their companies and beyond in their distinct roles.” American Banker says ESG principles “are quickly becoming part of the mainstream and being applied by businesses across every aspect of their operations.”
FundFire reports a recent Cerulli Associates survey found that distribution teams “are increasingly turning to data analytics to drive faster growth but are running into challenges in pulling the right data together and convincing wholesalers to actually use the tools they put in place.” The survey showed 95% of distribution executives cited “insufficient technology infrastructure” as “very challenging” or “somewhat challenging” to efforts in data analytics. Moreover, 70% of distribution executives “considered sourcing data to be either very or somewhat challenging.” Voya Investment Management Head of Distribution Enablement and Intelligence Jane Conway said many asset management firms make large investments in core platforms “and spend a lot of money on data without a blueprint or a way to integrate that data into an infrastructure that supports the distribution ecosystem.”
FundFire reports, “After being forced to adapt to the rapid changes brought on by the Covid-19 pandemic, asset managers are embracing a new normal as they adopt hybrid strategies to integrate traditional and digital distribution models.” Industry leaders “reflected on the changing distribution landscape during a panel at the Financial Times’ Future of Asset Management North America conference on Thursday.” Voya Investment Management CEO Christine Hurtsellers said, “What used to take a wholesaler three hours to prepare for ... now takes our wholesalers five minutes.” Hurtsellers added that she “can’t underscore enough how important continuing to invest in data is for the industry.”
MarketWatch reports that airlines are starting to use frequent flyer programs as “collateral for bondholders.” Airlines are making the pledges against their programs because they can generate cash by selling frequent flyer miles to credit card issuers, who, in turn “offer them as part of their reward programs to their customers.” The article says that “the revenues earned from selling the miles” to credit card issuers “are much higher than the cost of any flight travel redeemed by passengers.” Voya Investment Management Fixed Income Portfolio Manager Cliff Andrus said, “The customer doesn’t realize the margins are quite high.” According to the article, “Even with reduced demand for air travel, the mileage programs still hold their value.” Andrus said, “You’re going out to spend money on your credit card, whether or not you’re flying.” According to some analysts, using frequent flier programs as collateral “represents a desperate move by airlines that are looking for any assets that they can pledge.”
Pensions & Investments reports Voya spokesperson Kristopher Kagel confirmed that Voya Investment Management Managing Director and Head of Product Management and Development Bill Golden assumed Stephen Dougherty’s responsibilities as a managing director and head of structured assets and alternatives. Pensions & Investments mentions that “Dougherty was named global head of product at Aegon Asset Management.”
Bloomberg TV What’d You Miss? featured an interview with Voya Investment Management CEO Christine Hurtsellers, who discussed her thoughts on stock market performance and macroeconomic trends. According to Hurtsellers, the U.S. “still has a long way to go before” the economy returns to its pre-pandemic level, especially as the unemployment rate remains above 10%. However, Hurtsellers said that the “underlying fundamentals and momentum” of the economy “are actually quite good,” with “retail spending rebounding,” and more activity on the restaurant-reservation platform OpenTable. When asked about the relative strength of the stock market, and if the Fed’s liquidity actions are obscuring some risks to investors, Hurtsellers answered, “I would say, for the most part, no,” adding that “when you peel back the covers and look deeper into the market ... we are still seeing a tale of two cities, meaning that” some sectors, such as commercial real estate “have really lagged.”
Voya Chief Investment Officer for Fixed Income Matt Toms was on Bloomberg TV discussing debt markets and what factors are likely to have an impact in the future. Looking forward, Toms said, “in our view, it’s unlikely that [the Federal Reserve] needs to specifically use yield curve control ... the market is saying the Fed is near zero for an extended period, beyond 2-3 years all the way out to that 5 year bond. It’s only at the very back end with that 30 year where you see the real steepening, so bond markets are saying we could stay at a low level for a very long time.”
Voya Investment Management Head of Securitized Dave Goodson was quoted by GlobalCapital as it looks at how the pandemic and subsequent economic shock have impacted the asset-backed securities market. Many asset issuers have adopted forbearance as “an integral part of ... relief plans to buy some time for their clients to recover.” However, Goodson believes that it remains unclear what direction the economic recovery will take and “the key question is how forbearance translates into real, observed delinquencies” in the market. Looking at specific sectors such as aviation that have been particularly hard hit, Goodson believes that “there will be a return to normal at some point when a vaccine arrives, but the road to that point will be difficult.”