Target Retirement Trust Series

Overview
Performance
Literature
Team

Approach

The Voya Target Retirement Trust Series is a suite of Target Date Collective Trusts. This suite utilizes a sophisticated design that seeks the best practices of the defined benefit and defined contribution world to help participants reach their retirement goals. The Target Retirement Trust Series invests in a combination of underlying trusts that cover multiple asset classes and asset managers to create diversified allocations for participants based on their retirement date. Through sophisticated portfolio construction techniques, the trusts offer diversification of alpha sources and investment styles to help generate consistent long-term returns while seeking to reduce risk.

Key Benefits

Open Architecture. Voya is one of only a few target date providers to employ a multi-manager¹ approach and has over 10 years of experience working within an open architecture framework. This approach offers diversity of thought and process from world class asset managers.
Intelligent Blend of Active & Passive. Active managers may offer the potential for excess returns in less efficient asset classes. Passive managers may offer cost effective exposure to highly efficient asset classes within a competitive fee structure.
Broad Diversification². This suite invests in a broad range of traditional and non-traditional asset classes to help manage risks through all phases of the market cycle.
Participant-Centric Glide Path. The glide path is designed to maximize wealth accumulation early in a participant’s career and reduce equity in the years immediately before retirement when participants are the most vulnerable to a market downturn.

¹ Multi-Manager refers to the use of investment managers including Voya Investment Management and outside managers, which may be offered through affiliated sub-advised funds.

² Diversification does not guarantee against a loss, and there is no guarantee that a diversified portfolio will outperform a non-diversified portfolio.

Performance

As of 3/31/24	1 Month	3 Month	YTD	1yr	3yr	5yr	10yr	Since Inception (1/01/13)
Composite Gross	2.18	4.13	4.13	13.09	2.88	6.73	6.40	7.36
Composite Net	2.16	4.08	4.08	12.88	2.68	6.53	6.20	7.16
Index*	1.93	3.44	3.44	11.60	3.15	6.42	6.04	6.99

* S&P Target Date 2025 Index

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 performance of the Voya Target Retirement product suite is designed to show the performance of a composite of all substantially similar portfolios as the Voya Target Retirement Trusts. The Voya Target Retirement product suite is designed to provide a total return consistent with an asset allocation targeted for a specific retirement date range, that will gradually adjust over that time to become more conservative as the target retirement year approaches, after which the investment objective will be a combination of total return and stability of principal. Returns are benchmarked to the S&P Target Date Index suite, which does not incur management fees, transaction costs, or other expenses associated with a composite portfolio. The S&P Target Date Index series consists of underlying multi-asset class indices, each corresponding to a particular target retirement date. The benchmark asset allocation and glide path for each index in the series is determined once a year and represents market consensus across the universe of target date fund managers. The Index does not reflect fees, brokerage commissions, taxes or other expenses of investing. Portfolio valuations and returns for this composite are computed and stated in U.S. dollars. There is no asset minimum for inclusion in the composite. This composite was incepted on January 1st, 2013 and created in May 2022. Gross returns are net of all fees and transaction expenses at the underlying mutual fund level, but gross of any fees that may be applicable to specific investment vehicles utilized to implement the intended investment model. Net-of-fees returns are calculated by deducting a hypothetical management fee from the gross return on a monthly basis and geometrically linking the results to produce annual returns shown. The applicable annual fee ratio is 0.19%. Further information regarding applicable fee schedules is available upon request.

Literature

Voya Target Retirement Trust Quarterly Commentary

Date: December 31, 2023

Approved For: Public Use Material

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Investment Team

Barbara Reinhard, CFA

Senior Managing Director, Chief Investment Officer, Multi-Asset Strategies and Solutions

Years of Experience: 31

Years with Voya: 8

Barbara Reinhard is the chief investment officer, multi-asset strategies and solutions at Voya Investment Management. She is responsible for the strategic direction and overall day-to-day portfolio management and human capital management of Voya’s multi-asset business. Prior to joining Voya, Barbara was the chief investment officer for Credit Suisse Private Bank in the Americas where she managed discretionary multi-asset portfolios and was a member of the global asset allocation and the employee pension investment committees. Prior to that, she worked at Morgan Stanley as the deputy chief investment strategist for the global wealth management division. Barbara earned a BA in economics from Trinity College and is a CFA® Charterholder.

Lanyon Blair, CFA, CAIA

Senior Vice President, Head of Manager Research and Selection

Years of Experience: 16

Years with Voya: 9

Lanyon Blair is a Head of Manager Research and Selection for Multi-Asset Strategies and Solutions (MASS) at Voya Investment Management. He is responsible for manager research and selection activities across equity, fixed income, real estate and commodities asset classes for all of the MASS group’s multi-manager products, including risk-based, target date, portable alpha and other asset class fund of funds solutions. Prior to joining Voya, he was an investment analyst at Wells Fargo, focusing on research and due diligence of equity, real estate and multi-asset managers. Prior to that, he was a research analyst with Fidelity Investments covering equity and real estate managers for Fidelity’s retirement platform. Lanyon began his career as a consultant with FactSet Research Systems, where he worked closely with equity, fixed income and real estate research teams. Lanyon earned an MA in economics from American University and BA degrees in economics and criminal justice from Indiana University. He is a CFA® Charterholder and a Chartered Alternative Investment Analyst®.

Disclosures

Principal Risk

The Target Retirement Trust principal risks are generally those attributable to investing in stocks, bonds and related derivative instruments. Target Retirement Trust holdings are subject to market, issuer and other risks, and their values may fluctuate. Market risk is the risk that securities or other instruments 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 or instrument may decline for reasons specific to the issuer, such as changes in its financial condition. Additionally, the concentration of Target Retirement Trust holdings may lead to high volatility and tracking error relative to the benchmark. Furthermore, there is the risk that needed hedges may not always be available in the derivatives markets or available at attractive prices. In addition, because each Target Retirement Trust is exposed to underlying collective funds, the performance of these investment vehicles will have a substantial impact on the Target Retirement Trust’s overall performance, and such investment vehicles may have unique risks based on their strategy and operations. Certain underlying investment vehicles may not offer daily liquidity. The Target Retirement Trust may also incur fees attributable to such underlying pooled investment vehicles. In some situations, fees paid from these investment vehicles to affiliates of the Trustee may be offset or rebated vis-à-vis the Trust or its investors.

There is no guarantee that any investment option will achieve its stated objective. Principal value fluctuates and there is no guarantee of value at any time, including the target date. The "target date" is the approximate date when an investor plans to start withdrawing their money. When the target date is reached, the investor may have more or less than the original amount invested. For each target-date portfolio, until the day prior to its target date, the portfolio will seek to provide total returns consistent with an asset allocation targeted for an investor who is retiring in approximately each portfolio’s designated target year. On the target date, the portfolio will seek to provide a combination of total return and stability of principal.