A home run may grab attention. But for bond investors, the better test is how consistently a manager adds value without taking unnecessary risk.
The consistency advantage in core plus
1 Protect the runs you've scored
Unlike a baseball at-bat, a swing and miss in investing can erase prior gains. The downside may be greater than the upside.
2 Limit the volatility of strikeouts
Aggressive credit, duration, or sector calls may produce home runs, but they may also create an unpredictable return profile.
3 Keep getting on base
A manager that adds value more regularly may provide the steadier experience investors expect from a core bond allocation.
Voya’s approach at the plate
Prioritize quality at-bats: Use many modest sources of alpha; don’t depend on one heroic market call.
Keep plate discipline: Take compensated risk while limiting the large misses that can overwhelm a core allocation.
Execute consistently: No matter the market environment, leverage a robust security selection process to identify attractive opportunities.
The advisor question
Is your core plus manager built to get on base consistently, or are they dependent on a few big swings?
Get on base. Limit the strikeouts. Let consistency compound.
Voya Intermediate Bond Fund | Ticker: IICIX
A note about risk
All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. You could lose money on your investment and any of the following risks, among others, could affect investment performance. The following principal risks are presented in alphabetical order which does not imply order of importance or likelihood: Bank Instruments; Company; Credit; Credit Default Swaps; Currency; Derivative Instruments; Environmental, Social, and Governance (Fixed Income); Floating Rate Loans; Foreign (Non U.S.) Investments/ Developing and Emerging Markets; High-Yield Securities; Interest in Loans; Interest Rate; Investment Model; Liquidity; Market; Market Capitalization; Market Disruption and Geopolitical; Mortgage and/or Asset-Backed Securities; Municipal Obligations; Other Investment Companies; Preferred Stocks; Prepayment and Extension; Securities Lending; U.S. Government Securities and Obligations. Investors should consult the Fund’s Prospectus and Statement of Additional Information for a more detailed discussion of the Fund’s risks. The strategy employs a quantitative model to execute the strategy. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect performance. Furthermore, there can be no assurance that the quantitative models used in managing the strategy will perform as anticipated or enable the strategy to achieve its objective.