- Pure-play loan investing
- Highly diversified portfolios with transparency to underlying assets
- Ultra-short duration, secured corporate credit
- Appropriate liquidity options
- Large, experienced, cycle proven investment team
- Disciplined, consistent investment process
|As of 2/28/19||1 Month||3 Month||YTD||1yr||3yr||5yr||10yr||Since Inception (4/01/01)|
|Gross Excess Return||0.14||0.03||-0.05||0.30||-0.68||0.31||0.51||0.90|
* S&P/LSTA Leveraged Loan 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.
Stocks and bonds have long been seen as the primary options for investors. Stocks offer the opportunity to gain from the rise in the value of a company, while bonds typically offer a fixed rate of monthly or quarterly income. But another asset class, senior loans, is growing in popularity and should be considered by investors looking for asset class diversification in their investment portfolios.This paper will introduce you to the senior loan asset class.
Approved For: Financial Professional or Qualified Institutional Investor Use Only
Jeffrey A Bakalar
Group Head and Chief Investment Officer, Senior Loans
Years of Experience: 21
Jeff Bakalar is senior managing director, group head and chief investment officer of the Voya Investment Management senior loan group. He co-manages the group with Dan Norman, and he is chairman of the group’s investment committee. Jeff is currently a member of the board of directors of the Loan Syndications and Trading Association. Jeff received his MBA from DePaul University.
Group Head and Managing Director, Senior Loans
Years of Experience: 27
Dan Norman is senior managing director, group head of the Voya Investment Management senior loan group. He co-manages the group with Jeff Bakalar, and serves as a member of the group’s investment committee. Dan is a former member of the board of directors of the Loan Syndications and Trading Association and the International Association of Credit Portfolio Managers. Dan received his MBA from the University of Nebraska.
Risk is inherent in all investing. The following are the principal risks associated with investing in senior loans. Credit risk: Senior loans are below-investment-grade instruments that carry a higher than normal risk that borrowers may not make timely payments of principal and interest. Failure by borrowers to make such payments may cause the yield and/or the value of your investment to decline. Interest rate risk: The yield on senior loans is directly affected by changes in market interest rates. If such rates fall, the yield may fall. Also, if overall interest rates on loans decline, the yield may fall and the value of the assets may decrease. When market interest rates rise, there may be a delay in the rise in the yield due to a lag between changes in such rates and the resetting of the floating rates on the loans. Limited secondary market for loans: Loans do not trade on an established exchange. There is a limited secondary market for loans. Demand for loans: An increase in demand for loans may adversely affect the rate of interest payable on new loans, and it may also increase the price of loans in the secondary market. A decrease in the demand for loans may adversely affect the price of loans, which could cause the value of loans to decline. Use of leverage: The strategy may engage in leverage for some portfolios. The use of leverage in a portfolio may have a magnifying effect on the returns for a portfolio, both positively and negatively. Foreign currency: The strategy may invest in loans denominated in currencies other than the U.S. dollar. While the strategy seeks to hedge foreign currency risk to the greatest extent practicable, such hedging may not be effective.
This is not, and is not intended to be, a description of all risks of investing in senior loans. The applicable offering documents should be read carefully before investing.