Investment Management

Stable Value

Portfolio Managers

Christine Hurtsellers, CFA Photo

Christine Hurtsellers, CFA

Chief Executive Officer, Voya Investment Management

Matt Toms, CFA Photo

Matt Toms, CFA

Chief Investment Officer, Fixed Income

Sean Banai, CFA Photo

Sean Banai, CFA

Head of Portfolio Management

Paul Buren, CFA Photo

Paul Buren, CFA

Portfolio Manager

Summary

Actively managed strategies designed for defined contribution plan sponsors seeking to provide participants with capital preservation and attractive rates of return.

Objective

To provide above benchmark returns with limited risk to principal.

Process

All of our stable value strategies utilize the Voya philosophy and approach to fixed income investing. Macro themes are incorporated in every aspect of the decision-making process, which integrates quantitative and fundamental analysis in a disciplined, bottom-up investment approach. Feedback loops ensure all elements are connected. Strong risk budgeting, risk management and compliance capabilities ensure quality checks and balances. Portfolio managers enforce strict adherence to investment guidelines.

Competitive Advantage

  • Stable value investments provide a means for participants to preserve capital in a rising interest rate environment because the principal does not fluctuate with rate changes
  • Over the long-term, stable value investments tend to produce returns similar to intermediate-term bonds but with less risk to principal
  • Returns are generally higher over the long-term than for money markets or cash
  • Returns on stable value investments offer very low correlation to equities or other fixed income asset classes, providing exceptional diversification characteristics

Principal Risks

The principal risks of the underlying strategies are generally those attributable to investing in stocks, bonds and related derivative instruments, and short selling. Holdings are subject to market, issuer, credit, prepayment, extension 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. The underlying strategies may invest in mortgage-related securities, which can be paid off early if the borrowers on the underlying mortgages pay off their mortgages sooner than scheduled. If interest rates are falling, the strategy will be forced to reinvest this money at lower yields. Conversely, if interest rates are rising, the expected principal payments will slow, thereby locking in the coupon rate at below market levels and extending the security’s life and duration while reducing its market value. High yield bonds carry particular market risks and may experience greater volatility in market value than investment grade bonds. Foreign investments could be riskier than U.S. investments because of exchange rate, political, economic, liquidity, and regulatory risks. Additionally, investments in emerging market countries are riskier than other foreign investments because the political and economic systems in emerging market countries are less stable.

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

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