Voya Financial launches new target date fund series

Published 31/03/2025, 13:46
Voya Financial launches new target date fund series

WINDSOR, Conn. - Voya Financial, Inc. (NYSE: VOYA), a $6.4 billion market cap company with strong financial metrics according to InvestingPro analysis, has expanded its retirement solutions with the introduction of the MyCompass Target Date Blend Series (MyCompass Blend), a collection of collective investment trusts overseen by Great Gray Trust Company, LLC. The new offering, which is accessible to all plan sizes, adds to Voya’s existing $25 billion suite of target date solutions. The company’s expansion comes as it maintains a healthy 2.68% dividend yield and has consistently paid dividends for 13 consecutive years.

The MyCompass Blend is designed to reflect the strategy of Voya Investment Management’s (Voya IM) Target Retirement Trust (TRT), which invests in various underlying trusts across multiple asset classes and managers. The series aims to maximize wealth for participants early in their careers and reduce risk as they approach retirement. It features a participant-centric glide path, a mix of active and passive management strategies, and a multi-manager framework, all of which contribute to a diversified and cost-effective investment option. InvestingPro analysis suggests the company is currently undervalued, with several additional bullish indicators available to subscribers.

With total fees ranging between 18-20 basis points, depending on the vintage, MyCompass Blend offers a competitive cost structure while providing access to a combination of asset classes. The series also includes an allocation to Stable Value, intended to mitigate volatility for participants nearing retirement.

Amy Vaillancourt, president of Wealth Solutions at Voya, stated the launch demonstrates Voya’s commitment to assisting clients and their employees in achieving successful retirement outcomes. Barbara Reinhard, chief investment officer of MASS at Voya IM, highlighted the company’s two-decade experience in the target date space and its early adoption of the blended, multi-manager approach.

The introduction of MyCompass Blend comes as the target date industry has reached a record $3.5 trillion in assets, according to recent industry data. The collective investment trusts (CITs) managed by Great Gray Trust Company, LLC, with flexPATH Strategies, LLC as a fiduciary for investment selection, reflect the growing popularity of CITs in defined contribution (DC) plans.

Voya Financial, a prominent provider of health, wealth, and investment services, continues to focus on delivering solutions through the workplace. The company’s approach is to ensure financial confidence and a fulfilling life for its clients, supported by a team of approximately 10,000 employees.

This announcement is based on a press release statement from Voya Financial, Inc.

In other recent news, Voya Financial reported strong fourth-quarter earnings that exceeded Wall Street expectations, with earnings per share (EPS) at $1.40, surpassing the consensus estimate of $1.27. The company also reported higher-than-expected revenue of $2.01 billion, driven by strong results in its Wealth Solutions and Investment Management segments. Despite these positive results, Voya Financial has faced mixed analyst ratings. Morgan Stanley upgraded the stock to Overweight, raising the price target to $87.00, citing confidence in the company’s long-term growth strategy and potential for stable results in the Health Solutions segment.

Conversely, BofA Securities downgraded Voya Financial to Underperform, lowering the price target to $71 due to concerns about the company’s earnings projections and cash flow generation. Barclays also downgraded the stock to Equal Weight with a new price target of $75.00, highlighting weaker expected earnings power and risks to future consensus estimates. Additionally, Wells Fargo downgraded the stock to Equal Weight, adjusting the price target to $76.00, reflecting concerns over the company’s stop loss performance and anticipated challenges. These recent developments reflect a complex outlook for Voya Financial as it navigates through strategic changes and varying analyst expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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