Approach
This strategy employs an unconstrained and flexible approach, investing broadly across debt markets to provide a more stable and resilient long-term investor experience. This can be achieved through flexible portfolio construction guided by a constrained absolute risk target and a careful use of duration to diversify portfolio risk exposures.
Key Benefits
- Seeks consistent, moderate returns across all market environments with a focus on downside protection
- Controlled fixed income-like risk exposure
- Avoidance of undue correlation to traditional fixed income and equity
Performance
Performance
| As of 11/30/20 | 1 Month | 3 Month | YTD | 1yr | 3yr | 5yr | 10yr | Since Inception (1/01/13) |
|---|---|---|---|---|---|---|---|---|
| Composite Gross | 1.93 | 2.70 | 1.02 | 1.75 | 4.18 | 5.02 | - | 4.31 |
| Composite Net | 1.90 | 2.60 | 0.66 | 1.35 | 3.76 | 4.61 | - | 3.89 |
| Index* | 0.02 | 0.06 | 1.06 | 1.23 | 1.94 | 1.50 | - | 1.04 |
| Gross Excess Return | 1.91 | 2.64 | -0.04 | 0.52 | 2.23 | 3.52 | - | 3.26 |
* ICE BofA USD 3M Deposit Offered Rate Constant Maturity Index
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.
The Composite performance information represents the investment results of a group of fully discretionary accounts managed with the investment objective of outperforming the benchmark. Information is subject to change at any time. Gross returns are presented after all transaction costs, but before management fees. Returns include the reinvestment of income. Net performance is shown after the deduction of a model management fee equal to the highest fee charged.
Literature
Voya Unconstrained Fixed Income Strategy Brief
Q3 2020
Includes Investment Commentary
Approved For: Financial Professional or Qualified Institutional Investor Use Only
Voya IM Fixed Income Profile
Approved For: Financial Professional or Qualified Institutional Investor Use Only
Investment Team
Matt Toms, CFA
Chief Investment Officer, Fixed Income
Years of Experience: 26
Years with Voya: 11
Matt Toms is the chief investment officer of fixed income at Voya Investment Management. In this role, he leads a team of more than 100 investment professionals, with broad oversight of Voya’s fixed income platform as well as business management responsibilities. As CIO, Matt serves as the chair of the Fixed Income Asset Allocation Committee, a group that formulates the fixed income platform’s strategic investment themes that in turn informs strategy and risk budgeting across public fixed income portfolios. Matt is also a member of the Investment Committee that is represented by the CIOs from across Voya Investment Management. Before becoming CIO, Matt was head of public fixed income at Voya Investment Management, overseeing the investment teams responsible for investment grade corporate, high yield corporate, structured products, mortgage-backed securities, emerging market debt and money market strategies for Voya’s general account and third-party business. Prior to joining the firm, 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 received a BBA from the University of Michigan and holds the Chartered Financial Analyst® designation.
Sean Banai, CFA
Head of Portfolio Management
Years of Experience: 21
Years with Voya: 21
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.
Brian Timberlake, PhD, CFA
Head of Fixed Income Research
Years of Experience: 17
Years with Voya: 17
Brian Timberlake is the head of fixed income research at Voya Investment Management and is responsible for managing the organization’s global fixed income research analysts as well as the coordination of macroeconomic data across the fixed income platform. His team is responsible for macro and quantitative fixed income research and provides additional assistance to individual sector groups and the risk management team. In addition, Brian is a named portfolio manager on several global and opportunistic fixed income products. Previously, he was the head of quantitative research where he helped develop an integrated, automated tool for interest rate hedging, created multifactor risk models, and was integral to the design and monitoring of customized client portfolios. Prior to that he was a senior quantitative analyst at Voya. Brian received a BS in chemical engineering from the University of Maryland, an MS in quantitative and computational finance from the Georgia Institute of Technology and a PhD in chemical engineering from the Georgia Institute of Technology. He holds the Chartered Financial Analyst® designation.
Disclosures
Principal Risks
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.