Investment Strategies

Senior Loans

An actively managed, ultra-short duration floating rate income strategy that invests primarily in privately syndicated, non-investment grade, secured senior loans. Senior loans, also known as corporate loans, are floating rate instruments that can provide a natural hedge against rising interest rates. Senior loans are typically secured by a first priority lien on a borrower’s assets, resulting in historically higher recoveries than corporate bonds. The strategy may be employed with or without leverage.

Strategy brief

Review and outlook

Weekly market talking points

Manager: Voya Investment Management Co. LLC

High Yield Bonds

A high yield fixed income strategy that invests in below investment-grade securities. The strategy capitalises on the talents of an experienced high yield team focused primarily on fundamental credit analysis and security selection. Implementation of broad investment themes and portfolio diversification help minimise the impact of negative idiosyncratic events, and broad market strategy ensures portfolios are positioned to capitalise on secular and cyclical trends affecting the asset class.

Strategy brief

Corporate Credit Strategies Help Overcome Declining Expectations for Fixed Income

Manager: Voya Investment Management Co. LLC

Private Placement Debt

Private placements are primarily investment grade, fixed-rate corporate debt sold to institutional investors. Globally, borrowers use private placements to maintain confidentiality of their financials and obtain more flexible terms. New issuance each year is about one-quarter of the size of the public market. Like public bonds, private placements have a fixed-rate structure and term length. Like bank loans, they have greater upfront due diligence, priority debt, financial covenant protection and a more intensive ongoing relationship with borrowers. Privates historically have earned higher total returns than public bonds of similar quality and duration due to higher upfront yields, prepayment and amendment fees and lower losses upon defaults.

Strategy brief

Introduction to private credit

Manager: Voya Investment Management Co. LLC

Securitised Credit

Investments in fixed income sectors collateralised by distinct asset types: commercial real estate (CMBS), non-agency residential housing (RMBS) and non-mortgage assets (ABS), to provide direct, focused exposure to these specific sectors. The recovery in real estate values, relatively high yields, collateral seasoning and low sensitivity to interest rate risk contribute to total return potential exceeding expectations for other fixed income markets. Disciplined, multi-faceted security analysis emphasising micro-level collateral and structural attributes is implemented to optimise risk-reward opportunities. The most relevant macro themes are reflected in asset allocation positioning, an additional lever utilised to further optimise total return potential of the strategy.

Strategy brief

Manager: Voya Investment Management Co. LLC

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Commercial Real Estate Debt

Commercial real estate debt is financing for income-producing real estate properties including certain special purpose property types. Property types include office, retail, multi-family, industrial, manufactured housing, self storage, hospitality and student housing. Commercial real estate debt on a broadly diversified portfolio of stabilised, multi-tenant properties can produce superior risk-adjusted fixed income returns through consistent income generation, preservation of principal and low volatility. Loans are originated in accordance with accepted guidelines through a large correspondent network and direct lending relationships.

Strategy brief

White paper – Commercial mortgage loans

Manager: Voya Investment Management Co. LLC

Unconstrained Fixed Income

A multi-sector strategy seeking attractive absolute returns by investing in the broad global fixed income universe, without regard to a benchmark. The strategy takes a flexible and unconstrained approach to both duration and sector allocation to achieve its return target across diverse market environments.

Voya combines its macro theme analysis with disciplined research and relative value analysis to identify unrecognised value investment opportunities and produce consistent results using an intelligent, risk aware approach.

Strategy brief

Manager: Voya Investment Management Co. LLC

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Diversified Credit

A multi-strategy, fixed income-oriented absolute return fund which seeks capitalise on the managers’ size and experience in spread sectors and multi-sector management, designed with a rising interest rate environment in mind.

For more information, contact Breakwater Advisory

Manager: Voya Alternative Asset Management LLC

Equities – U.S. Large Cap Growth

An actively managed strategy which relies on fundamental research and analysis to identify companies with strong and accelerating business momentum, increasing market acceptance and attractive valuations.

Manager: Voya Investment Management Co. LLC

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Equities – Global Quant Long/Short

A quantitatively managed, absolute return focused and style neutral strategy seeking superior risk-adjusted returns throughout the market cycle.

For more information, contact Breakwater Advisory

Manager: Eminence Global Asset Management

Other Strategies

Breakwater Advisory also represents a range of other U.S. Equity strategies, Multi-Asset Capabilities including Target Date, and other Fixed Income capabilities.

For more information contact Breakwater Advisory

Manager: Voya Investment Management Co. LLC

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