News

Investment & Pensions Europe looks at how markets and investors are responding to the coronavirus outbreak, specifically the search for safe havens as volatility increases. Voya Investment Management Fixed Income CIO Matt Toms is surprised the dollar has not experienced a spike in valuation as a safe haven, noting that “currency volatility has been subdued, benefiting interest rates as the currency relationship changes.” Toms hopes that the scope and disruption caused by the outbreak are limited to the short-term, with any recessionary effects limited to several quarters. “That should create a spring-loaded effect, so any abatement in the summer months or a bounce in medical advances could be quite strong,” says Toms.

In continuing coverage, the ABF Journal reports Randy Cameron and Dave Wood have “joined Voya Investment Management as senior vice presidents to co-head the firm’s regional and community bank advisory program.” In this new role, Cameron and Wood “will work with regional and community banks to advise them on implementing customized portfolios of diversifying credits, including senior secured, commercial and industrial loans.” Voya Investment Management Head of Distribution Charlie Shaffer said of the program, “While community and small regional banks have historically excelled at small business underwriting and relationship management, Voya’s regional and community bank advisory program recognizes that the syndicated loan market demands a broader industry knowledge and timely action. Clients benefit from Voya’s unique market leadership, experience, relationships, credit risk management, training and sourcing capabilities while effectively keeping independent research and decision-making within their walls, thus satisfying regulatory requirements.”

Bloomberg reports Voya Investment Management “has hired Randy Cameron and Dave Wood to lead the firm’s Regional and Community Bank Advisory Program.” The program “helps client banks acquire senior secured commercial and industrial loans in a customized portfolio.” The pair will be based in Salt Lake City and report to Head of Distribution Charlie Shaffer. Prior to joining Voya, Cameron and Wood “founded Financial Institution Growth LLC, a registered investment adviser that specializes in working directly with select commercial banks to introduce and approve loan programs.”

Barron’s has named Voya Investment Management CEO Christine Hurtsellers to its 100 Most Influential Women in U.S. Finance list, praising her “strategic direction and operational performance of more than $217 billion in assets” as she has helped guide strong growth at the company. Voya Financial Chairman and CEO Rodney Martin said of Hurtsellers, “Not only has Christine created, and executed, on an ambitious strategy to grow this business, at the same time she has never lost sight that it’s her people who make investment management successful.” Besides her individual recognition, the article notes that Voya Financial was also named to the top three in Barron’s 100 Most Sustainable Companies ranking, with Hurtsellers saying, “I am incredibly proud on behalf of all Voya employees, and for our clients, of what we’re delivering here.”

MarketWatch reports “some of America’s biggest corporations on Tuesday plan to pry open the U.S. investment-grade bond market,” with Bank of America, Exxon Mobil, PepsiCo and Progressive “among a rash of companies on Tuesday planning to raise funds by borrowing in the U.S. corporate bond market.” Corporate credit markets have been hammered in recent days by coronavirus-related uncertainty. However, Voya Investment Management Co-Head of Investment-Grade Credit Travis King believes it will ultimately be a positive move, saying, “In general, the investment-grade market is still in pretty good shape. For the right issuer, at the right pricing level, there is liquidity available. Of course, spreads can still go wider from here, and the stock selloff worse.”

Bloomberg features a video interview with Voya Investment Management Chief Executive Officer Christine Hurtsellers, who discussed “the market implications of Federal Reserve monetary policy” with Bloomberg’s Scarlet Fu, Romaine Bostick and Sonali Basak on “Bloomberg Markets: What’d You Miss?”

Voya Investment Management Managing Director Mike DeFeo was quoted by PlanAdviser in an article looking at changes in the defined contribution investment only (DCIO) marketplace, which has now seen “the lion’s share of assets ... attracted into the target-date funds (TDFs) offered by Vanguard, American Funds and State Street Global Advisors.” According to DeFeo, more Voya clients “are seeking collective investment trusts (CITs), which used to only be available at the larger end of the market,” while sponsors are increasingly “inquiring about environmental, social and governance (ESG) investment.” Looking forward, DeFeo believes offerings such as a recent American Funds product that incorporates income into its TDF will become more popular, saying “more providers, including Voya, will be coming out with their own versions of that, including standalone retirement income offerings. Firms like Voya that have robust fixed income platforms are trying to figure out how to use that strength to provide unique investment opportunities in the market.”

Voya Investment Management CIO of Multi-Asset Strategies and Solutions Paul Zemsky was on CNBC discussing what impact the coronavirus was likely to have on the U.S. economy. Zemsky acknowledged that “first quarter data is going to look lower everywhere around the world,” but he anticipates a “v-shaped” rebound in the short-term. Zemsky notes that the U.S. economy does not rely heavily on China, the center of the outbreak, which should mitigate any potential impact. Looking forward, Zemsky believes stocks are “a little bit cheap compared with 10-year Treasuries,” especially as earnings growth continues to be strong and interest rate expectations remain muted.

Bloomberg reports U.S. equity markets rose for a third consecutive day on Wednesday as markets believe the economic impact of the coronavirus will be limited. Voya Investment Management Chief Investment Officer of Equities Michael Pytosh said of the overall sentiment, “The market is shrugging it off. You can see that the effort is there and the market is saying that this isn’t going to break out into a pandemic. It’s not going to cause some cataclysmic medical problem in the world.”

Voya Investment Management Head of Asset Allocation Barbara Reinhard was on CNBC discussing how optimism and a touch of complacency are driving current market gains, especially in the face of coronavirus fears. Reinhard cited ample global liquidity as one of the primary macroeconomic conditions helping propel markets higher, saying, “there’s a central investment decision that you have to make – do you believe that what has happened over the last several weeks dislodged the 5-6 months reacceleration that you’re seeing in the rest of the world?” Reinhard believes there is not enough data yet to accurately answer that question, with concerns about when Chinese factories reopen a key data point to watch.