Voya Enhanced Yield Fixed Income SMA | Voya Investment Management
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Voya Enhanced Yield Fixed Income SMA

Approach

The Voya Enhanced Yield Fixed Income strategy seeks to maximize total return via a higher credit quality approach expressed through the use of Treasury, Agency, and Corporate Credit securities, both Investment Grade and Below, with 1-10 year maturities. The strategy targets greater income than pure investment grade while preserving principle by adding selective high yield bond exposure.

Investment Philosophy

We believe that intensive security level research paired with a broadly informed awareness of the economic and credit cycles are critical to identifying superior investment opportunities and managing downside risk.

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

These three key beliefs frame an integrated strategy that incorporates a dynamic blend of top-down and bottom-up approaches.

Investment Process

Supported by a seasoned team of over 275 fixed income professionals, our three-step process leverages the collective insights from across Voya’s Fixed Income platform, incorporating both top-down and bottom-up research insights. First, our asset allocation committee deliberates and prioritizes investment themes impacting fixed income markets, and offers unencumbered views regarding sectors and overall risk posturing. Next, the Head of Global Rates & Macro, the Head of Fixed Income Research, and the Head of Multi-Sector Portfolio Management then build a model portfolio, incorporating client guidelines and objectives. Finally, individual sector teams are then responsible for identifying and trading specific bonds.

Performance

Performance

As of 3/31/241 Month3 MonthYTD1yr3yr5yr10yrSince Inception (7/01/01)
Composite Gross0.920.280.284.770.492.472.814.77
Composite Net0.80-0.09-0.093.22-1.040.730.933.02
Index*0.860.510.515.980.272.332.764.91

* Custom Blended Benchmark ENF

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

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.
Sean Banai

Sean Banai, CFA

Head of Portfolio Management

Years of Experience: 25

Years with Voya: 25

Sean Banai is head of portfolio management 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.
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.
Matt Toms

Matt Toms, CFA

Chief Executive Officer

Years of Experience: 30

Years with Voya: 15

Matt Toms is the chief executive officer of Voya Investment Management, the asset management business of Voya Financial. As CEO, Toms leads the strategic direction and operational performance of Voya Investment Management, which manages strategies spanning public and private fixed income, equities, multi-asset solutions and alternative strategies for institutions, financial intermediaries and individual investors. Voya Investment Management has domestic offices in New York City, Atlanta, San Diego and San Francisco, among others, as well investment teams in London, UK. Matt has over 30 years of asset management experience, both domestically and internationally. Prior to becoming CEO, Matt was global chief investment officer and CIO of fixed income at Voya Investment Management and led a team of investment professionals with broad oversight of Voya’s public fixed income, private fixed income and alternatives, equities, and multi-asset strategies and solutions. Before joining Voya, Matt worked at Calamos Investments, where he built their fixed income business. He also has prior portfolio management experience at Northern Trust and Lincoln National. Matt serves on Voya Financial’s Executive Committee and is a board member of Pomona Capital. He earned a BBA from the University of Michigan 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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