Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Voya Investment Management — Q1 2021 Earnings Presentation
12 slides from Voya Financial's earnings presentation, April 2021
Slide 1: Voya Investment Grade Credit Quarterly Update
Voya Investment Grade Credit Quarterly Update Quarter Ending March 31, 2021 1604265 For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to, the general public.
Slide 2: 1Q21 Fixed Income Returns
1Q21 Fixed Income Returns Sector Returns: Q1 2021 15% 10% 5% 1.78% 1.33% 0.87% 0.86% 0% -0.80% -1.10% -1.84% -5% -4.25% -4.26% -4.54% -4.65% EM Local -6.68% -10% Agency MBS EM $ Sov Treasuries CMBS Bank Loans EM $ Corp IG Corp Voya IG Credit CRTs CLOs High Yield Past performance is no guarantee of f
Slide 3: Investment Grade Corporate Market Summary
Investment Grade Corporate Market Summary Change (bp) Index Excess Return U.S. Corporate Investment Grade OAS (bps) Sectors OAS QTD YTD QTD YTD Corporate 91 -5 -5 0.95 0.95 400 Communications 109 -11 -11 1.57 1.57 Transportation 100 -15 -15 1.39 1.39 350 Airlines 163 -88 -88 4.29 4.29 Railroads 92 -
Slide 4: NN (L) US Credit: Performance
NN (L) US Credit: Performance Summary Data as of 03/31/21 Total return approach, offering a comprehensive approach to investing in the full range of investment grade U.S. corporate bonds 11.84 11.29 8.73 7.96 7.43 7.44 6.91 6.20 6.51 5.99 6.60 6.07 4.91 5.04 5.35 Q 1Y 3Y Y 10 Y Si T I i 10/01/09 Gro
Slide 5: Performance Attribution
Performance Attribution 1Q21 Attribution Attribution Commentary 0 Key contributors to outperformance: Consistent with our approach, security selection drove -50 outperformance for the quarter with strong contributions coming from Financials and Industrials, while Utilities -100 modestly contribute
Slide 6: Portfolio Positioning
Portfolio Positioning Current Quarter vs. Index Change from Last Quarter Top-10 Issuers Financials Financials Absolute Basic Ind. Basic Ind. BAC 3.30% Cap Goods Cap Goods VZ 3.10% Comm. Comm. JPM 2.70% Cons. Cyc. Cons. Cyc. AAPL 2.10% Cons. Non-Cyc. Cons. Non-Cyc. ABBV 2.00% Energy Energy T 1.70% Te
Slide 7: Corporate Debt Growth Rate Subdued, Keep an Eye on M&A
Corporate Debt Growth Rate Subdued, Keep an Eye on M&A Corporate Debt Growth Rate M&A Related Corporate Issuance Downgrades Occurring From A to BBB 25 300 $ bn 25% 120 Downgrades within A Announced/Pending 113 Downgrades from A to BBB Actual 108 Downgrades within BBB % of Total (RHS) 20 Downgrades t
Slide 8: Move Higher in Rates Attracts more Yield-Based Demand
Move Higher in Rates Attracts more Yield-Based Demand IG Spreads Resilient in Rate Spike, Yields Rate-Driven Outflows Failed to IG Performs Well in Below-Avg. but to Grind Higher Materialize for IG Rising Inflation 400 2.5 70 US IG OAS (LHS) Short 4% Base US 10Y Intermediate Case US IG Excess Fwd 12
Slide 9: Investment Grade Corporate Market Outlook Summary
Investment Grade Corporate Market Outlook Summary Strong fundamentals to further IG Continues to Offer Attractive Security Selection Opportunities support positive macro story Relative Yields Remain in BBB, Front-End Issuers 2.5% 1Q21 earnings expected to show strong 2.27% 300 growth Leverage re
Slide 10: Appendix
Appendix 10 For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to, the general public.
Slide 11: Fixed Income Market Review: Sources and Indices
Fixed Income Market Review: Sources and Indices Slides 2: Index Definitions Treasuries as represented by Bloomberg/Barclays U.S. Treasury Index Agency MBS as represented by Bloomberg/Barclays Securitized – U.S. MBS Index CMBS as represented by Bloomberg/Barclays Securitized – Non-Agency CMBS: Agg El
Slide 12: Disclosure
Disclosure All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. High-Yield Securities, or “junk bonds”, are rated lower than investment-grade bonds because there is a greater possibility that the issuer may be unable to make int
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