MyCompass Target Date Blend Series, trusteed by Great Gray Trust Company, provides the next chapter of MyCompass Index Fund Series; builds on Voya’s suite of target date solutions representing over $25B in assets
Voya Financial,announced the launch of the new MyCompass Target Date Blend Series (MyCompass Blend), a series of collective investment trusts trusteed by Great Gray Trust Company, LLC. The series, available across all plan sizes, further builds upon Voya’s history in the target date space, which represents over $25 billion in assets across a variety of solutions.
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“The launch of MyCompass Blend is another example of Voya’s commitment to providing solutions to both our plan sponsor clients and their employees that can ultimately help individuals to achieve successful retirement outcomes,” said Amy Vaillancourt, president, Wealth Solutions. “We’re excited to offer an innovative, new solution that leverages input from respected industry participants alongside Voya Investment Management (Voya IM), and their two-decades worth of experience in the target date space.”
According to industry data, the target date industry recently hit a record $3.5 trillion in assets.2 As these strategies continue to grow in popularity, Voya has remained focused on building out its suite of solutions, with MyCompass Blend building upon the firm’s MyCompass Index and MyCompass American Funds solutions (other CITs trusteed by Great Gray) and those offered through Voya Investment Management (Voya IM), the asset management business of Voya Financial. Specifically, MyCompass Blend is designed to mirror Voya IM’s Target Retirement Trust (TRT) which invests in a combination of underlying trusts covering multiple asset classes and asset managers to create diversified allocations for participants based on their retirement date. The series includes new features available to plan participants and sponsors including:
- Participant-Centric Glide Path – A participant-focused glide path, based on Voya’s deep understanding and analysis of defined contribution participants, thatseeks to maximize wealth in early years, via more equity relative to peers, and reduce risk in later years to protect wealth.
- Intelligent Blend of Active and Passive – Combines active managers, who may offer excess returns within less efficient asset classes, with passive managers who may offer low-cost access to more efficient asset classes. This allows for a cost-effective structure with all-in fees ranging from 18-20 bps, depending on the vintage.
- Multi-Manager Framework – Offers access to multiple managers to provide both diversity and reduce investment risks versus the use of a single manager.
- Stability of Principal – An allocation to Stable Value seeks to reduce volatility, particularly as participants near retirement.
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MyCompass Blend is offered as collective investment trusts (CITs), which continue to grow in popularity within DC plans. The solution is constructed, and trusteed, by Great Gray Trust Company, LLC and sub-advised by flexPATH Strategies, LLC who serves as a fiduciary for the investment selection. Voya IM serves as the glide path fiduciary to the series, leveraging their multi-manager, blended approach which utilizes both active and passive strategies.
“With over 20 years of experience, Voya IM was an early pioneer of the blend, multi-manager target date approach,” said Barbara Reinhard, chief investment officer, MASS at Voya IM. “The launch of MyCompass Blend leverages the investment capabilities of a number of top firms and, with its mix of both active and passive strategies, provides cost effective exposure to a range of asset classes.”
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As an industry leader focused on the delivery of benefits, savings, and investment solutions to and through the workplace, Voya Financial is committed to its purpose of, together, fighting for everyone’s opportunity for a better financial future.
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Source – Businesswire
