Investment Management

Outcome-Oriented Equity

Summary

By combining the best of our fundamental and quantitative research capabilities, Voya’s Outcome-Oriented Equity solutions provide lower-cost access to fundamental alpha sources while mitigating the model risk and unintended consequences of a purely rules-based approach.

Objective

Voya’s proprietary stock ranking models provide the building blocks to design and implement solutions for a wide range of client objectives that cannot be met with traditional, benchmark-oriented equity strategies. Solutions are implemented to meet the unique objectives of each client.

Process

Below is our three step investment process:

Step 1: Build custom universe based on client-defined parameters

Step 2: Rank the universe using Voya’s proprietary stock ranking models

Step 3: Construct the portfolio to maximize alpha, lower beta and neutralize sector exposure

Competitive Advantage

We believe Voya’s approach of integrating quantitative research and fundamental research signals mitigates the model risk and unintended consequences of a rules-based approach, and delivers more flexibility to achieve outcomes that cannot be met with traditional benchmark-oriented equity strategies:

  • Voya’s proprietary multi-factor, stock ranking models have been in place since 2004 and deliver lower-cost access to uncorrelated, fundamental alpha sources
  • Sector-neutral approach mitigates sector biases and helps protect against interest-rate risk
  • Focus on three unique alpha sources helps deliver downside protection and strong upside capture
  • Optimization ensures risk positions and factor exposures are deliberate, diversified and consistent with client objectives
  • Investment universe and benchmark can be tailored to address the dynamic needs of our clients
  • Stock-ranking models can be applied across regions (global and international) and market capitalizations (small-, mid-, and large-cap)

Principal Risks

The principal risks are generally those attributable to stock investing. Holdings are subject to market, issuer 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.

*There is no guarantee that this objective will be achieved.

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