Voya Strategic Income SMA

As of January 31, 2019, the Voya Multi-Sector Fixed Income SMA was renamed Voya Strategic Income SMA.

Summary

An unconstrained, multi-sector fixed income strategy focused on maximizing total return by seeking risk-adjusted opportunities across the globe

Objective**

The strategy seeks to provide investors with:

  • Consistent returns across all market environments
  • Controlled, fixed income-like risk exposure
  • Avoidance of undue correlation to traditional fixed income and equity

Portfolio Details

Invests across the global fixed income universe via individual securities and completion vehicles. Sectors include investment grade corporates, U.S. Treasuries and agencies, senior bank loans, high yield bonds, securitized credit, and emerging market debt.

  • Maximum 50% total allocation to completion vehicle; typically used to gain diversified exposure to less accessible sectors, including senior loans, emerging markets debt, and securitized credit
  • Maximum 50% total allocation to below investment grade corporates; helps limit the strategy's credit risk and correlation to equity
  • Portfolio's duration will range between 2 to 4 years

Investment Process

Supported by a seasoned team of 200+ investment professionals, our three-step process leverages the collective insights from across Voya’s Fixed Income platform, incorporating both top-down and bottom-up research insight. Our process is designed to be transparent, collaborative and maintain accountability across our team, with a focus on capital preservation and risk-adjusted returns.

Construction

  • Macro Insights: Asset allocation committee deliberates and prioritizes investment themes impacting fixed income markets, offers unencumbered views regarding sectors and overall risk posturing
  • Portfolio Design: the Multi-Sector Portfolio Management team then builds a model portfolio, incorporating client guidelines and objectives
  • Security Selection: individual sector teams are then responsible for identifying and trading specific bonds Oversight & Management
  • Multi-Sector Portfolio Management team continuously reviews portfolio construction, trading, and performance to ensure characteristics and attributes are in line with the model portfolio
  • The Independent Risk Management team affirms intended risks are properly represented, flags potential unintended risks that may arise during the process, and provides insight on overall risk
  • Compliance maintains additional oversight on guidelines and escalates issues related to passive or active breeches in a client portfolio

Competitive Advantages

  • Focused on maximizing risk-adjusted returns by using flexibility to avoid prevailing market risks
  • Unconstrained approach to portfolio construction, not unconstrained risk
  • Security selection and sector allocation are primary drivers of return; limited use of duration and currency positioning to mitigate volatility
  • Aim to maintain low correlations to global interest rates/traditional fixed income and volatile equity markets
  • Leverages robust and collaborative macro process coupled with industry leading security selection by each individual sector team

**There is no guarantee that this objective will be achieved.

Past performance does not guarantee future results. There is no guarantee that any forecasts or opinions in this material will be realized. Manager commentary is for informational purposes only and does not constitute investment advice and is not a recommendation to purchase or sell any of the securities referenced.