Voya Financial enhances advisor-managed accounts advisory program with launch of new non-core funds offering

Rhea-AI Summary

Voya Financial has launched 'Primary Plus', a new lineup of non-core investment options within its Advisor Managed Account (AMA) program. This initiative allows RIAs to offer investment choices outside of a plan's core lineup, enhancing participants' retirement portfolios. Voya's managed account solutions saw a 27% increase in total assets in Q1 2024, reflecting growing interest in personalized financial guidance. The AMA program now supports over 400 plans, offering a comprehensive, scalable advisory solution to RIAs. This launch follows other recent initiatives, such as Voya Pathway QDIA™, aimed at improving retirement outcomes.

Positive

• Primary Plus expands investment options for participants' retirement portfolios.
• 27% increase in total assets in managed account solutions in Q1 2024.
• The AMA program supports over 400 plans since its 2021 introduction.
• Enhanced participant investment exposure to diverse asset classes.
• Seamless, integrated platform for easier RIA implementation and monitoring.
• Comprehensive advisory program aligning with personalized financial guidance.
• Recent launch of Voya Pathway QDIA™ enhancing managed account programs.

Negative

• No direct mention of revenue impact or financial gains from Primary Plus launch.
• Potential complexity for participants in understanding non-core investment options.
• No detailed data on participant outcomes or satisfaction from existing managed accounts.

Insights

Financial Analyst

Voya Financial's introduction of the 'Primary Plus' investment lineup within its Advisor Managed Account (AMA) program marks a strategic move to cater to the growing demand for personalized financial guidance. The notable 27% increase in total assets in managed account solutions for the first quarter of 2024 indicates a healthy uptake and confidence in Voya's offerings. This move could further solidify Voya's market position by attracting more Registered Investment Advisors (RIAs) and participants seeking diversified investment options.

From a financial perspective, the expansion into non-core investment options like collective investment trusts and mutual funds opens new revenue streams and enhances the product mix. Such diversification could potentially lead to higher management fees and better retention of clients through improved investment outcomes. It's essential to monitor the performance and adoption rate of these new offerings to gauge long-term financial benefits.

For retail investors, this expansion indicates Voya's commitment to innovation and responsiveness to market demands, which can be seen as a positive indicator of the company's growth and adaptability. However, investors should remain cautious about the potential risks associated with the diversification into non-core assets and ensure that these new offerings align with their risk tolerance and investment objectives.

Market Research Analyst

Voya Financial's launch of the 'Primary Plus' investment lineup reflects a broader industry trend towards more personalized and diversified investment solutions. The move to incorporate non-core investment options like collective investment trusts and mutual funds can significantly enhance the appeal of Voya's Advisor Managed Account (AMA) program for RIAs. This trend aligns with the increasing demand for customized financial advice and diversified investment portfolios to meet individual retirement goals.

The seamless and integrated platform that Voya offers to RIAs helps streamline the implementation and monitoring processes, making it easier for advisors to manage their clients' investments. This can lead to higher satisfaction rates among plan participants and a stronger competitive edge for Voya in the retirement planning market.

For retail investors, these developments suggest that Voya is actively addressing the needs for flexibility and comprehensive financial planning solutions. The expanded offerings could result in improved retirement outcomes for participants, thereby enhancing Voya's brand reputation and customer loyalty. However, it's important for investors to understand the specifics of these non-core funds and ensure they meet their financial strategies and goals.

New ‘Primary Plus’ investment lineup introduced as Voya’s total assets in managed account solutions increase 27% in the first quarter of 2024

WINDSOR, Conn.--(BUSINESS WIRE)-- Voya Financial, Inc. (NYSE: VOYA), announced today the launch of Primary Plus, an expanded lineup of non-core investment solutions within its Advisor Managed Account (AMA) program. The new solution allows third-party Registered Investment Advisor (RIA) firms that offer a managed account program through Voya the opportunity to introduce investment options outside of a plan’s core investment lineup.

“At Voya, we know that employees want — and value — a personalized approach to financial guidance. As a result, we continue to see a growing interest in managed account solutions, with total assets increasing 27% since the year prior in the first quarter of 2024 alone,”¹ said Andre Robinson, senior vice president, Retail Wealth Management and Advisory Solutions at Voya Financial. “By helping to improve both saving and investment decisions, we know that managed account solutions can have a positive impact on a participant’s retirement outlook.”

Built to address an increasing interest from advisors, Voya’s Primary Plus solution provides funds not specified in a plan’s core investment lineup as an opportunity to increase a participant’s investment exposure to an asset class. These funds can include solutions such as collective investment trusts or mutual funds. The solution also enables RIA firms to build a more comprehensive managed account program with Voya, providing participants who enroll in the managed account program with a customized and diverse allocation designed to help them reach their retirement goals.

Voya’s Advisor Managed Accounts program provides RIAs the resources they need to distribute investment advice to retirement plan participants through a consistent and scalable user experience. Leveraging a seamless and integrated platform, the AMA program at Voya helps to ease the implementation and monitoring for an RIA firm and ensures advisors have access to a network of recordkeepers. Since the introduction of the program in 2021, the AMA program at Voya now supports over 400 plans that leverage the service.

“Our focus is to create a pressure-free experience where plan participants have the information, guidance or advice they need to make better savings and planning decisions,” said Jason White, director, Advisory Services at Voya Financial. “By offering a comprehensive suite of in-plan and out-of-plan solutions, we remain focused on providing products and programs that support financial professionals in helping their clients reach their future goals.”

The introduction of Primary Plus builds upon Voya’s growing advice and guidance solution program. Most recently, the firm announced the launch of Voya Pathway QDIA™, a new dual Qualified Default Investment Alternative (QDIA) available across Voya’s various managed account programs within Voya-administered retirement plans. In addition, Voya remains focused on investing in and creating solutions that will help enable more positive retirement outcomes. This includes an advisory services program, providing participants in Voya-administered retirement plans with a broader scope of access to advice services as well as access to myVoyage, a personalized financial-guidance and connected workplace-benefits digital platform.

As an industry leader focused on the delivery of benefits, savings and investment solutions to and through the workplace, Voya is committed to delivering on its mission to make a secure financial future possible for all — one person, one family, one institution at a time.

1. Voya internal data as of March 31, 2024.

About Voya Financial^®

Voya Financial, Inc. (NYSE: VOYA), is a leading health, wealth and investment company with approximately 9,000 employees who are focused on achieving Voya’s aspirational vision: Clearing your path to financial confidence and a more fulfilling life. Through products, solutions and technologies, Voya helps its 15.2 million individual, workplace and institutional clients become well planned, well invested and well protected. Benefitfocus, a Voya company and a leading benefits administration provider, extends the reach of Voya’s workplace benefits and savings offerings by engaging directly with over 12 million employees in the U.S. Certified as a “Great Place to Work” by the Great Place to Work^® Institute, Voya is purpose-driven and committed to conducting business in a way that is economically, ethically, socially and environmentally responsible. Voya has earned recognition as: one of the World’s Most Ethical Companies^® by Ethisphere; a member of the Bloomberg Gender-Equality Index; and a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, Instagram, and LinkedIn.

Advisor-Managed Accounts is offered by Morningstar Investment Management LLC and is intended for citizens or legal residents of the United States or its territories. The portfolios available through Advisor-Managed Accounts are created by an investment adviser (the “IA”) chosen by a plan sponsor. Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc., is responsible for participant portfolio assignment from those portfolios created by the IA. The IA is not affiliated with Morningstar Investment Management and Morningstar Investment Management is not responsible for the portfolios the IA creates. The IA is not responsible for the portfolio selection made by Morningstar Investment Management, nor for other recommendations made by Morningstar Investment Management through Advisor-Managed Accounts. Investment advice delivered by Morningstar Investment Management is based on information provided and limited to the investment options available in each retirement plan. Projections and other information regarding the likelihood of various retirement income and/or investment outcomes are hypothetical in nature, do not reflect actual results, and are not guarantees of future results. Results may vary with each use and over time. Morningstar Investment Management and Morningstar, Inc., are not affiliated with the Voya family of companies.

VOYA-RET

View source version on businesswire.com: https://www.businesswire.com/news/home/20240604343395/en/

Media Contact:

Kris Kagel

Voya Financial

Cell: (201) 221-6534

Kristopher.kagel@voya.com

Source: Voya Financial, Inc.

FAQ

What is Voya Financial's new Primary Plus offering?

Primary Plus is a new lineup of non-core investment options within Voya's Advisor Managed Account program, aimed at enhancing participant retirement portfolios.

How much did Voya Financial's managed account solutions grow in Q1 2024?

Voya's managed account solutions saw a 27% increase in total assets in the first quarter of 2024.

What is the purpose of Voya Financial's Advisor Managed Account program?

The program provides RIAs the resources to offer investment advice to retirement plan participants through a consistent and scalable user experience.

How many plans does Voya's AMA program support?

Since its introduction in 2021, Voya's AMA program now supports over 400 plans.

What recent initiative has Voya launched to improve retirement outcomes?

Voya recently launched Voya Pathway QDIA™, a new dual Qualified Default Investment Alternative, to enhance managed account programs.