New set of target dates supports growing demand for active equity management from advisors and builds on the success of the MyCompass Index, which has reached over $ 2 billion in plan assets since 2019
Voya Financial, Inc. (NYSE: VOYA), today announced the launch of MyCompass American Funds, the latest addition to Voya & CloseCurlyQuote’s suite of Target Date Fund (TDF) solutions for plan sponsors. Now available to all Voya pension plan clients, MyCompass American Funds offers a set of target dates for collective investment trusts (CITs) that includes management from industry leaders including Voya Investment Management (IM), American Funds of Capital Group and Wilmington Trust Co. The New Target The date set further complements Voya’s current suite of TDF solutions, including MyCompass Index and those offered by Voya IM.
Based on the growing demand from pension advisors, the solution was designed to support a more active equity management approach, building on the success of Voya’s MyCompass indexing solution, which launched in 2019 and has achieved over $ 2 billion in plan assets in just two years.1
Specifically, Voya’s MyCompass American Funds CIT Target Date Series is designed to build and preserve personal wealth by providing the following key features and benefits:
- A thoughtful progression plan that balances market risk and longevity risk by emphasizing funds with historically more profitable, low volatility equity funds as the participant ages;
- Underlying funds actively managed;
- Flexible mandates, such as global and multi-asset funds, which allow bottom-up asset allocation with the aim of improving returns and helping to mitigate risk; and,
- A stable value allocation that seeks to reduce volatility.
“Plan sponsors understand that plan members have unique retirement planning needs. As a result, plan advisors are increasingly looking for new ways to provide their clients with additional investment opportunities to meet their needs, ”said Bill Harmon, Director of Client Services, Voya Financial. “At Voya, we are committed to providing products and services that can ultimately help all Americans achieve a secure financial future with confidence. Innovative solutions, including those such as the MyCompass American Funds target date series, offer plan sponsors and advisors a greater opportunity to support individuals on their retirement planning journey. ”
Often serving as the default investment option for individuals’ defined contribution plans, target date fund strategies continue to gain popularity with employers, pension advisors and plan members. According to the latest industry data from the Employee Benefit Research Institute, at the end of 2018, more than half (56%) of 401 (k) participants in their database had target date funds, assets target date funds representing more than a quarter (27%) of total 401 (k) plan assets.2
“Professionally managed, age-appropriate portfolios that rebalance automatically to keep participants on target have long made TDF an attractive investment decision. At the same time, 2020 has highlighted the risk that uncertain markets can create for individuals with respect to their overall investment strategy and decisions, including those within the framework of their retirement plan, ”added Jeff Cimini, Senior Vice President, Retirement Product Management at Voya Financial. “For advisers, we also know that active management in times of extreme volatility can provide more effective support. We’re excited to deliver an innovative new solution that offers a ‘downhill route within a downhill route’ approach, balancing market risk and longevity to generate return and, ultimately, help deliver better. retirement results to plan members. ”
“We’re excited to be working with Voya to bring MyCompass American Funds to plan sponsors who want to take advantage of the proven core elements of the US fund’s target date series,” said Brendan Mahoney, head of strategic growth for the US fund. institutional retirement at Capital Group. “The series integrates the knowledge and experience of Voya Investment Management into a record-keeping platform with extensive resources for participants to support the entire retirement journey.”
In addition to investment choices, Voya also believes it is important to foster behavior and action changes through a multi-channel approach, which includes engaging experiences and solutions. As a result, Voya continues to invest in its range of innovative savings and planning resources, including the recently enhanced program pension plan members website experience, its out-of-plan emergency savings solution, budget calculator and Voya Learn digital educational platform.
As an industry leader focused on delivering health, wealth and investment solutions to and through the workplace, Voya Financial is committed to fulfilling its mission of making possible a secure financial future for all. Americans – one person, one family, one institution at a time.
About Voya Financial®
Voya Financial, Inc. (NYSE: VOYA) is a leading healthcare, wealth management and investing company that provides products, solutions and technologies that help Americans become well-planned, well invested and well protected. Serving the needs of 14.8 million individual, business and institutional clients, Voya is a Fortune 500 company with 2020 revenues of $ 7.6 billion and total assets under management and administration of $ 718 billion. dollars as of September 30, 2021. Certified as a “Great Place of Work” by the Great Place to Work® Institute, Voya is goal-oriented and also committed to conducting business in a socially, environmentally, economically and ethically responsible manner . Voya has been recognized as one of the World’s Most Ethical Companies’ by the Ethisphere Institute; as a financial services company ranked # 1 in Barron’s 100 Most Sustainable Companies for three consecutive years; as a member of the Bloomberg Gender Equality Index; and as’ Best Place to Work for Disability Inclusion & CloseCurlyDoubleQuote; on the equality index for people with disabilities. For more information visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Trip.