Voya 2013 Annual Report Download - page 358

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
managed the assets transferred to ING Bank from ING Direct. In November 2012, in connection with the
Termination Agreement, this Alt-A Asset Management Agreement was amended to provide that IIM would also
manage the assets transferred to ING Bank as part of the Termination Agreement. For the years ended
December 31, 2013 and 2012, ING Bank paid the Company approximately $5.5 and $7.7 in fees related to the
Alt-A Asset Management Agreement.
19. Consolidated Investment Entities
The Company provides investment management services to and has transactions with, various collateralized loan
obligations, private equity funds, single strategy hedge funds, insurance entities, securitizations and other
investment entities in the normal course of business. In certain instances, the Company serves as the investment
manager, making day-to-day investment decisions concerning the assets of these entities. These entities are
considered to be either VIEs or VOEs and the Company evaluates its involvement with each entity to determine
whether consolidation is required.
Certain investment entities are consolidated under VIE or VOE consolidation guidance. The Company
consolidates certain entities under the VIE guidance when it is determined that the Company is the primary
beneficiary of these entities. The Company consolidates certain entities under the VOE guidance when it acts as
the controlling general partner and the limited partners have no substantive rights to impact ongoing governance
and operating activities.
With the exception of guarantees issued by the Company in relation to collateral support for reinsurance
contracts, the Company has no right to the benefits from, nor does it bear the risks associated with these
investments beyond the Company’s direct equity and debt investments in and management fees generated from
these investment products. Such direct investments amounted to approximately $654.0 and $600.0 as of
December 31, 2013 and 2012, respectively. If the Company were to liquidate, the assets held by consolidated
investment entities would not be available to the general creditors of the Company as a result of the liquidation.
Consolidated Investments
Collateral Loan Obligations (“CLO”) Entities
Certain subsidiaries of the Company structure and manage CLO entities created for the sole purpose of offering
investors various maturity and risk characteristics by issuing multiple tranches of collateralized debt. The notes
issued by the CLO entities are backed by diversified portfolios consisting primarily of senior secured floating
rate leveraged loans.
The Company provides collateral management services to the CLO entities. In return for providing management
services, the Company earns investment management fees and contingent performance fees. The Company has
invested in certain of the entities, generally taking an ownership position in the unrated junior subordinated
tranches. The CLO entities are structured and managed similarly but have differing fee structures and initial
capital investments made by the Company. The Company’s ownership interests and management and contingent
performance fees were assessed to determine if the Company is the primary beneficiary of these entities.
As of December 31, 2013 and 2012, the Company consolidated 12 CLOs and 9 CLOs, respectively.
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