Investment Management

High Yield

Portfolio Managers

Randy Parrish, CFA Photo

Randy Parrish, CFA

Head of Credit

Rick C. Cumberledge, CFA Photo

Rick C. Cumberledge, CFA

Head of High Yield

Matt Toms, CFA Photo

Matt Toms, CFA

Chief Investment Officer, Fixed Income

Summary

Total return approach, investing in below investment grade corporate securities

Philosophy

We believe that rigorous credit research, a keen awareness of economic and credit cycles, and security selection are critical to identifying superior investment opportunities and managing downside risk.

Objective

To outperform the Bloomberg Barclays U.S. High Yield 2% Issuer Cap Index by 1.0% annually over a full credit cycle with tracking error not to exceed 2.0%

Process

Our investment process involves a focus on rigorous fundamental credit analysis and security selection. Broad investment themes implemented across a wide range of securities limit impact from negative company-specific credit events. Strategic input from the entire Voya IM fixed income team guides overall risk appetite and positioning. Strong risk budgeting, risk management and compliance capabilities ensure quality checks and balances. Ultimately, we seek consistently competitive returns appropriate to each client's mandate and risk tolerance.

Competitive Advantage

  • Total return approach, investing in below investment-grade corporate securities
  • Experienced, dedicated high yield team leverages the broader resources of the Voya fixed income platform
  • Disciplined investment process built on fundamental research, designed to identify and exploit opportunities arising from mispriced credit risk
  • By focusing on multiple sources of alpha generation rather than varying the beta of the portfolios alone, the Strategy seeks to outperform regardless of market environment
  • The efficacy of the team’s process is reflected in the strong relative returns and the superior information ratio generated by the Strategy

Principal Risks

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. The strategy may use Derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses and have a potentially large impact on performance. Foreign Investing does pose special risks including currency fluctuation, economic and political risks not found in investments that are solely domestic. Risks of foreign investing are generally intensified in Emerging Markets. As Interest Rates rise, bond prices may fall, reducing the value of the share price. Debt Securities with longer durations tend to be more sensitive to interest rate changes. Other risks include but are not limited to: Credit Risks; Other Investment Companies' Risks; Price Volatility Risks; Inability to Sell Securities Risks; and Securities Lending Risks.

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

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