Cyclically sensitive assets like equities and the riskiest credit instruments are likely to provide risk-adjusted returns superior to those of most fixed income assets, particularly government bonds, over our ten-year horizon, though the relative attractiveness is becoming more balanced than it was a year ago.Read More
Voya’s third survey of participant preferences in target date funds finds that two-thirds of retirement plan participants prefer target date funds which offer a mix of actively and passively managed components. The survey also confirms earlier findings that participants who use target date funds have greater confidence in their investments than those who don’t. The white paper with the full 2015 results, as well as the two previous surveys conducted in 2011 and 2013, can be found here.
After six-plus years, the current bull market already has surpassed the length of the average market upturn, and a variety of factors suggest returns may not be as easy to come by in the future. Voya’s new whitepaper Picking Managers for the Next Phase of the Market Cycle outlines how by following sound investment principles such as evaluating managers over a full market cycle, using rolling periods versus static periods and focusing on managers with greater consistency of returns — the all-weather managers — investors may find themselves well-positioned for whatever the future may hold.
Whether a plan sponsor favors active or passive management, choosing a target date manager is an active decision that may have much greater fiduciary considerations than the costs of the underlying funds. The very definition of “passive” is unclear, and the glide path and asset allocation will likely have much greater impact than the potential cost savings on passive funds.
The declining use of defined benefit pension plans has shifted the burden of retirement savings from institutions to individuals, primarily through their participation in defined contribution plans. Given challenging financial markets and the current low levels of retirement savings, we believe actively managed mutual funds in defined contribution plans are best suited to support retirement savings objectives.
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.