Voya 2014 Annual Report Download - page 353

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
(2) This category includes common collective trust funds invested in the Short-term Investment Fund. The
Short-term Investment Fund is designed to provide a rate of return by investing in a full range of high-
quality, short-term money market securities. Participants redemptions in the Short-term Investment Fund
were the result of the normal course of business, the Trustee permitted redemptions in cash. In order to
control liquidity and realized losses on the sale of securities in the Short-term Investment Fund, requests for
cash redemptions were not permitted where participants desired to exit the Short-term investment fund.
(3) International Commingled funds are comprised of two assets that use NAV to calculate fair value. Baillie
Gifford Funds has a balance of $119.5 and uses a bottom up approach to stock picking. In determining the
potential of a company, the fund manager analyzes industry background, competitive advantage,
management attitudes and financial strength and valuation. There are no redemption restrictions in the
Baillie Gifford Funds. Silchester has a fund balance of $102.0 that has an investment objective to achieve
long-term growth primarily by investing in a diversified portfolio of equity securities of companies located
in any country other than the United States. Silchester clients may contribute to and redeem moneys from
the funds on a monthly basis as of the first business day of each month. Clients must notify Silchester at
least six business days before the month-end to make a redemption request. Baillie Gifford and Silchester,
as a normal course of business, enter into contracts (commitments) that contain indemnifications or
warranties. The funds’ maximum exposure under these arrangements is unknown, as this would involve
future claims that have not yet occurred. Baillie Gifford and Silchester have no unfunded commitments.
(4) Limited partnerships are comprised of two assets that use NAV to calculate fair value. Pantheon Europe has
a balance of $16.5 and Pantheon USA has a balance of $54.9. Their strategy is to create a portfolio of high
quality private equity funds, operating across Europe and diversified by stage, sector, geography, manager
and vintage year. For the year ended December 31, 2013, Pantheon Europe and Pantheon USA have
unfunded commitments of $3.8 and $11.1, respectively, and there were no significant redemption
restrictions.
(5) UBS Trumbull Property Fund (“UBS”) uses the NAV to calculate fair value. UBS has a balance of $74.6
and is an actively managed core portfolio of equity real estate. The Fund has both relative and real return
objectives. Its relative performance objective is to outperform the NFI_ODCE index over any given three-
to-five-year period. The Fund’s real return performance objective is to achieve at least a 5.0% real rate of
return (i.e., inflation-adjusted return), before advisory fees, over any given three-to-five-year period.
(6) MIL has a balance of $76.1 and is designed to realize appreciation in value primarily through the allocation
of capital directly and indirectly among investment funds and accounts.
As described in the Fair Value Measurements (excluding Consolidated Investment Entities) Note to these
Consolidated Financial Statements, pension plan assets are categorized into a three-level fair value hierarchy
based upon the inputs available in valuating each of the assets. The fair value hierarchy gives the highest priority
to quoted prices in active markets for identical assets (Level 1) and the lowest priority to unobservable inputs
(Level 3). The leveling hierarchy is applied to the pension plans assets as follows:
Cash and cash equivalents: The carrying amounts for cash and cash equivalents reflect the assets’ fair value. The
fair values for cash and cash equivalents are determined based on quoted market prices. These assets are
classified as Level 1.
Short-term Investment Funds: Short term investment funds are valued by investment managers and are reported
as a NAV per share and are classified as Level 2. See subscript (2) in Fair Value Hierarchy table footnotes for a
description of the fund’s redemption policies.
U.S. Government securities, corporate bonds and notes and foreign securities: Fair values for actively traded
marketable bonds are determined based upon quoted market prices or dealer quotes and are classified as Level 1
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