Securitized Credit

Approach

This strategy invests in fixed income sectors collateralized by distinct asset types: commercial real estate (CMBS), residential housing (RMBS) and nonmortgage assets (ABS). We believe superior risk-adjusted returns are achieved through: recognition that relationships among alpha sources change, sometimes irrespective of the business cycle; fluid utilization of loan level research to discover unrecognized value ahead of consensus; and dynamic application of both macro and security-level investment inputs.

Key Benefits

  • Skill of Team: Expertise of a veteran team that has the skill and ability to manage across the securitized spectrum, adjusting exposure to alpha drivers as market conditions change
  • Integration of Platform: Integration into the broader MBS team, partnerships with the Voya Commercial Mortgage Loan and the Voya Senior Loan teams allows for deeper and direct insight to investment ideas
  • Uniqueness of Approach: Our through the cycle approach focuses on consistency and risk-adjusted returns across market environments; not predicated on temporary dislocations

Performance

Performance

As of 11/30/201 Month3 MonthYTD1yr3yr5yr10yrSince Inception (11/01/14)
Composite Gross1.262.58-2.80-2.692.824.48-4.67
Composite Net1.222.46-3.20-3.132.364.01-4.21
Index*0.12-0.023.924.173.873.09-2.93
Gross Excess Return1.132.59-6.72-6.86-1.061.39-1.75

* Bloomberg Barclays U.S. Securitized MBS/ABS/CMBS 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

Investment Team

Dave Goodson

Dave S Goodson

Head of Securitized

Years of Experience: 24

Years with Voya: 18

Dave Goodson is a managing director, head of securitized fixed income and a senior portfolio manager for Voya Investment Management’s non-agency and agency mortgage-backed securities, commercial mortgage-backed securities and asset-backed securities strategies. Prior to joining the firm, he was a principal at an independent investment bank focused on asset-backed commercial paper transactions. Dave began his career as a vice president in Wachovia Securities’ asset-backed finance group, marketing and executing securitizations for the bank’s corporate clients. He received a BS in management from the Georgia Institute of Technology.
Jonathan Abshire

Jonathan Abshire, CFA

Portfolio Manager, Structured Finance

Years of Experience: 18

Years with Voya: 18

Jonathan Abshire is a portfolio manager on the non-agency RMBS and ABS securities team at Voya Investment Management, focusing on European ABS. Previously, Jonathan completed a four-year expatriate assignment with the European ABS team in the Netherlands, overseeing a €9 billion structured finance portfolio. Jonathan began his career with the firm in the structured finance group, working on the non-agency RMBS and credit card ABS portfolios. Prior to joining the firm, Jonathan worked as an intern for Merrill Lynch and UBS. He received a BBA with a concentration in finance from the Goizueta Business School at Emory University and holds the Chartered Financial Analyst® designation.
John R. Edwards

John R. Edwards

Portfolio Manager, Commercial Mortgage-backed Securities

Years of Experience: 22

Years with Voya: 20

John Edwards is a portfolio manager on the commercial mortgage-backed securities team for Voya Investment Management, focusing on portfolio management and security selection, as well as credit monitoring and analysis. Previously, John worked in the firm’s real estate whole loan group in numerous positions including production, risk management, problem loan restructure and real estate equities management. He holds a BS in finance and real estate from Florida State University and an MBA from Georgia State University.

Disclosures

Principal Risks

All investments in bonds are subject to market risks. Bonds have fixed principal and return if held to maturity, but may fluctuate in the interim. Generally, when interest rates rise, bond prices fall. Bonds with longer maturities tend to be more sensitive to changes in interest rates. All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. High Yield Securities, or "junk bonds", are rated lower than investment-grade bonds because there is a greater possibility that the issuer may be unable to make interest and principal payments on those securities. High-yield bonds may be subject to more Liquidity Risk than, for example, investment-grade bonds. This may mean that investors seeking to sell their bonds will not receive a price that reflects the true value of the bonds (based on the bond’s interest rate and creditworthiness of the company). High Yield Bonds are also subject to Economic Risk which describes the vulnerability of a bond to changes in the economy.