Voya 2014 Annual Report Download - page 219

INVESTMENTS
(excluding Consolidated Investment Entities)
Investments for our general account are managed by our wholly owned asset manager, Voya Investment
Management LLC, formerly known as ING Investment Management LLC, pursuant to investment advisory
agreements with affiliates. In addition, our internal treasury group manages our holding company liquidity
investments, primarily money market funds.
Investment Strategy
Our investment strategy seeks to achieve sustainable risk-adjusted returns by focusing on principal
preservation, disciplined matching of asset characteristics with liability requirements and the diversification of
risks. Investment activities are undertaken according to investment policy statements that contain internally
established guidelines and risk tolerances and are required to comply with applicable laws and insurance
regulations. Risk tolerances are established for credit risk, credit spread risk, market risk, liquidity risk and
concentration risk across issuers, sectors and asset types that seek to mitigate the impact of cash flow variability
arising from these risks.
Segmented portfolios are established for groups of products with similar liability characteristics. Our
investment portfolio consists largely of high quality fixed maturities and short-term investments, investments in
commercial mortgage loans, alternative investments and other instruments, including a small amount of equity
holdings. Fixed maturities include publicly issued corporate bonds, government bonds, privately placed notes and
bonds, bonds issued by states and municipalities, ABS, traditional MBS and various CMO tranches managed in
combination with financial derivatives as part of a proprietary strategy known as CMO-B.
We use derivatives for hedging purposes to reduce our exposure to the cash flow variability of assets and
liabilities, interest rate risk, credit risk and market risk. In addition, we use credit derivatives to replicate
exposure to individual securities or pools of securities as a means of achieving credit exposure similar to bonds
of the underlying issuer(s) more efficiently.
See the Investments (excluding Consolidated Investment Entities) Note in our Consolidated Financial
Statements in Part II, Item 8. of this Annual Report on Form 10-K.
Portfolio Composition
The following table presents the investment portfolio as of the dates indicated:
December 31, 2014 December 31, 2013
($ in millions)
Carrying
Value %
Carrying
Value %
Fixed maturities, available-for-sale, excluding securities
pledged ..................................... $69,910.3 77.0% $68,317.8 78.4%
Fixed maturities, at fair value using the fair value
option ....................................... 3,564.5 3.9% 2,935.3 3.4%
Equity securities, available-for-sale ................. 271.8 0.3% 314.4 0.4%
Short-term investments(1) ......................... 1,711.4 1.9% 1,048.1 1.2%
Mortgage loans on real estate ...................... 9,794.1 10.8% 9,312.2 10.7%
Policy loans .................................... 2,104.0 2.3% 2,147.0 2.5%
Limited partnerships/corporations .................. 363.2 0.4% 236.4 0.3%
Derivatives .................................... 1,819.6 2.0% 1,149.3 1.3%
Other investments ............................... 110.3 0.1% 124.6 0.1%
Securities pledged ............................... 1,184.6 1.3% 1,465.7 1.7%
Total investments ............................... $90,833.8 100.0% $87,050.8 100.0%
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