Voya 2013 Annual Report Download - page 29

We are also growing our third-party affiliated and non-affiliated investment management business through
continued strength of investment performance as well as a number of key strategic initiatives, including:
improved distribution productivity; increased focus on client “solutions” and income and outcome oriented
products such as target date funds; pursuit of investment only mandates on non-affiliate retirement platforms;
replacement of sub-advised ING Mutual Funds where Investment Management now offers stronger investment
performance; sub-advisory mandates for Investment Management investment capabilities on others platforms;
leveraging partnerships with financial intermediaries and consultants; long-term expansion of our international
investment capabilities, and opportunistic launching of capital markets products such as C ollateralized loan
obligations (“CLOs”) and Closed End Mutual Funds.
Products and Services
Investment Management delivers products and services that are manufactured by traditional and specialty
investment platforms. The traditional platforms are fixed income, equities and multi-asset strategies and solutions
(“MASS”). The specialty investment platforms are senior bank loans and alternatives.
Fixed Income. Investment Management’s fixed income platform manages assets for our general account, as
well as for domestic and international institutional and retail investors. As of December 31, 2013, there were
$113.6 billion in AUM on the entire platform, of which $79.0 billion were general account assets. Through the
fixed income platform clients have access to money market funds, investment-grade corporate debt, government
bonds, residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”),
asset-backed securities (“ABS”), high yield bonds, private and syndicated debt instruments, commercial
mortgages and preferred securities. Each sector within the platform is managed by seasoned investment
professionals supported by significant credit, quantitative and macro research and risk management capabilities.
Equities. The equities platform is a multi-cap and multi-style research-driven platform comprising both
fundamental and quantitative equity strategies for institutional and retail investors. As of December 31, 2013,
there were $58.9 billion in AUM on the platform covering both domestic and international markets. Our
fundamental equity capabilities are bottom-up, research driven and cover growth, value and core strategies in the
large, mid and small cap spaces. Our quantitative equity capabilities are used to create quantitative and enhanced
indexed strategies, support other fundamental equity analysis and create extension products.
MASS. Investment Management’s MASS platform offers a variety of investment products and strategies that
combine multiple asset classes with asset allocation techniques. The objective of the MASS platform is to
develop customized solutions that meet the specific, and often unique, goals of investors with products that
change dynamically over time in response to changing markets and client needs. Utilizing core capabilities in
asset allocation, manager selection, asset/liability modeling, risk management and financial engineering, the
MASS team has developed a suite of target date and target risk funds that are distributed through our Retirement
Solutions business and to institutional and retail investors. These funds can incorporate multi-manager funds. The
MASS team also provides pension risk management, strategic and tactical asset allocation, liability-driven
investing solutions and investment strategies that hedge out specific market exposures (e.g., portable alpha) for
clients.
Senior Bank Loans. Investment Management’s senior bank loan group is a large experienced manager of
below-investment grade floating-rate loans, actively managing diversified portfolios of loans made by major
banks around the world to non-investment grade corporate borrowers. Senior in the capital structure, these loans
have a first lien on the borrower’s assets, typically giving them stronger credit fundamentals than unsecured
corporate bonds. The platform offers institutional, retail and structured products (e.g., CLOs), including on-shore
and off-shore vehicles with assets of $18.8 billion as of December 31, 2013.
Alternatives. Investment Management’s primary alternatives platform is Pomona Capital. Pomona Capital
specializes in investing in private equity funds in three ways: by purchasing secondary interests in existing
partnerships; by investing in new partnerships; and by co-investing alongside buyout funds in individual
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