Volatility-Controlled Alpha

Approach

The Voya Volatility-Controlled Alpha strategy seeks to maximize total returns and maintain lower volatility relative to the overall market. In an effort to achieve its mandate, the strategy relies on three distinct sources of excess returns – low beta, high dividend yield, and alpha model – each which have demonstrated outperformance with different risk/return profiles. We believe our focus on three distinct sources helps deliver downside protection without sacrificing the potential for attractive upside returns. As such, our multi-dimensional approach results in more than one way to win across different market environments.

Key Benefits

Fundamentally Informed Global Multi-Factor Models

  • Our long-standing proprietary models combine fundamental insights with quantitative capabilities which cannot be replicated by a pure quant manager
  • Ensures factors for each sector not only test well but make economic sense
  • Provides low-cost access to fundamental alpha sources

Seeks Downside Protection and Strong Upside Capture

Our balanced approach considers all market environments

  • Low beta may reduce downside risk when markets are down but lags in up-markets 
  • High dividend yield has the potential to perform well in both up- and down-markets
  • Alpha model seeks to generate excess returns in up markets  

Diversified Exposures

  • Avoids overcrowding by targeting lower volatility at the portfolio level – not the stock level
  • Sector-neutral approach mitigates concentrated exposures to defensive "bond proxy" sectors, thus making it less vulnerable to rising interest rates

Performance

Performance

Performance data for this strategy is not available at this time.

Literature

Investment Team

Vincent Costa

Vincent Costa, CFA

Head of Global Quantitative Equities

Years of Experience: 35

Years with Voya: 14

Vincent Costa is head of the global quantitative equities team and a portfolio manager for the active quantitative and fundamental large cap value strategies at Voya Investment Management. Previously at Voya, Vinnie was head of portfolio management for quantitative equity. Prior to joining Voya, he managed quantitative equity investments at both Merrill Lynch Investment Management and Bankers Trust Company. Vinnie earned an MBA in finance from New York University's Stern School of Business, a BS in quantitative business analysis from Pennsylvania State University, and is a CFA® Charterholder.
Peg DiOrio

Peg DiOrio, CFA

Head of Quantitative Equity Portfolio Management

Years of Experience: 27

Years with Voya: 8

Peg DiOrio is head of quantitative equity portfolio management and a portfolio manager for the active quantitative strategies at Voya Investment Management. Prior to joining Voya, she was a quantitative analyst with Alliance Bernstein/Sanford C. Bernstein responsible for multivariate and time series analysis for low volatility strategies, global equities, REITs, and options. Prior to that, she was a senior investment planning analyst with Sanford C. Bernstein. Peg formerly served as president of the Society of Quantitative Analysts and continues to serve on the board of directors. She is on the external advisory board for the Applied Math and Statistics Department of Stony Brook University. Peg earned a MS in Applied Mathematics, Statistics and Operations Research from the Courant Institute of Mathematical Sciences, NYU and a BS from SUNY Stony Brook. Peg is a CFA® Charterholder.
Steven Wetter

Steven Wetter

Portfolio Manager

Years of Experience: 32

Years with Voya: 8

Steven Wetter is a portfolio manager on the global quantitative equity team at Voya Investment Management responsible for the index, research enhanced index and smart beta strategies. Prior to joining Voya, Steve was co-head of international indexing at BNY Mellon responsible for managing ETFs, index funds and quantitative portfolios. Prior to that, he held similar positions at Northern Trust and Bankers Trust. Steve earned an MBA in finance from New York University's Stern School of Business and a BA from the University of California at Berkeley.
Kai Yee Wong

Kai Yee Wong

Portfolio Manager

Years of Experience: 28

Years with Voya: 8

Kai Yee Wong is a portfolio manager on the global quantitative equity team at Voya Investment Management responsible for the index, research enhanced index and smart beta strategies. Prior to joining the firm, she worked as a senior equity portfolio manager at Northern Trust responsible for managing various global indices including developed, emerging, real estate. Prior to that, Kai Yee was a portfolio manager with Deutsche Bank. Previously, she held roles with Bankers Trust and Bank of Tokyo. Kai Yee earned a BS from New York University Stern School of Business.

Disclosures

Principal Risks

You could lose money on an investment in the Fund. Any of the following risks, among others, could affect Fund performance or cause the Fund to lose money or to underperform: Company: The price of a company’s stock could decline or underperform. The Fund may use Derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance. Companies that issue Dividend yielding equity securities are not required to continue to pay dividends on such securities and can reduce or eliminate the payment of dividends in the future. Because the Fund may invest in Other Investment Companies, you may pay a proportionate share of the expenses of that other investment company, in addition to the expenses of the Fund. Risks of the REIT's are similar to those associated with direct ownership of Real Estate, such as changes in real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand, and the management skill and credit worthiness of the issuer. Other risks of the Fund include but are not limited to: Investment Model, Liquidity, Market, Market Capitalization, and Securities Lending. Investors should consult the Fund's Prospectus and Statement of Additional Information for a more detailed discussion of the Fund's risks.