untitled

Quarter ending March 31, 2015 I 1Q Strategy Brief

Voya Commercial Mortgage Loans Strategy

For financial professional or qualified institutio n a l inv e s t o r use only.

voyainvestments.com

INVESTMENT MANAGEMENT

Firm Overview

Voya Investment Management at a Glance

Voya I nv es t men t Management (Voya IM) is a leading

active asset management firm. As of December 31,

2014, Voya IM manages approxima te l y $213 billion* for

affiliated and external institutions as well as individual

investors. Drawing on over 4 0 years of experience and

an ongo i ng commitmen t to reliable investi ng , Voya IM

has th e resourc es and expertise to help provide long-

term i n ve st or s with strong investment result s .

Mission

Voya I nv es t men t Management ’ s mission is to find

unrecognized value ahead of c on se ns us by seeking

original insights on markets and co mpa ni e s. Toward

that end, we apply our proprietary researc h and

analytics, benchmark awareness and risk management

to ser v e client needs within the guidelines and

objectives of each a ss ig nm ent .

Portfolio Manager

Gregory Michaud

Head of Real Estate

Finance

Years of experience: 26

Years with company: 20

Supported by over 40 invest m e n t professionals.

Investment Objectives**

■

Originate whole loan commercial mortgages on stabilized, multi-tenant properties through

a cust omi z ed insti t ut io na l invest men t program

■

Seek t o generate superi or risk- ad ju s te d returns with a focus on current income and

preservation of principal

■

Build a nati on al l y diversi f i ed portfol i o across U.S. major markets and property sectors

■

Access current income through strong commercial mortgage investment volume

■

Provide liquidity and low v ol at i l i ty to investor portfol i os

■

Potential for tax-efficiency and favorable risk-based capital treatment

Customization

■

Commercial Mortgage Separate Account can be cu st omi z ed to fit investor requirement s

and nee ds :

►

Interest only or amor t i zi n g

►

Term l en gt h — 3 to 30 year terms with or without a balloon / bullet

►

Geographic location — selective exposure

►

Fixed or flo at i ng rate mortgages

►

Discretion and decision making preferences

►

Use of prudent levera ge to enhance return

Sponsor Overview

■

Voya I nv es t men t Management Real Estate Finance (Voya IM REF) originates and manages

whole l o an commerci a l mortgage s on behalf of Voya

■

Voya I M REF is a national, full-service commercial mortgage invest men t origin at or , Fitch

Rated Servicer and Fi t ch Rated Special Service r

■

Over $ 9 billio n (as of 03/31/15) whole loan commercial mortgage assets under

management

■

Over 1 , 200 loans

■

Over 2, 0 00 propert i es

■

Over 90 0 borrower s

■

Mortgage banking network of ov er 30 firms and 400+ professionals

*Voya IM assets of $213 bi l l i o n include proprietary insuran c e general account assets of $85 billion

calculated on a market valu e basis. Voya IM assets, as reported in Voya Financial, Inc. SEC filings, include

general account assets value d on a statutory book value basis and total approximatel y $206 billion. Both

totals include approximately $7 billion in Private Equi t y , $8 billion in Real Estate and $5 billion in other

assets including those sub-a d v i s e d through the Voya family of funds and the Multi-Asset Strategies and

Solutions product offerings. Approximately $0.6 billion of total fixed income assets are also included in the

Senior Loan and Private Equ i t y totals.

**There is no guarantee tha t this objective will be ach ieved.

Quarter ending March 31, 2015 I 1Q Strategy Brief

Voya Commercial Mortgage Loans Strategy

voyainvestments.com

For financial professional or qualified institutio n a l inv e s t o r use only.

FFIB-CML1 (0401-040115-ex073015) ·

RETIREMENT | INVESTMENTS | INSURANCE

Performance (%)

0.870.630.792.30(1.35)Gross Excess Return

5.366.254.926.892.21Barclays A Corporate Index

6.026.675.508.970.81Net:

6.236.885.719.190.86Gross:

10 Years5 Years3 Years1 YearQuarterComposite

Annualized

Investment Strategy

Core f i rs t mortgag e investme nt s that provide current

income at att ra ct i v e spreads while mitigati ng

downside risk

Structure

Customizable individually managed separate account

Sponsor Co-Investment

Customized per client

Markets

Top 50 U.S. Metropoli ta n Statis ti c al Areas (MSA) by

population

Property Types

Industrial, retail, apartment and office

Target Spread to Comparable Term U.S.

Treasury

1.75% - 2.25%

Target Yield

4.50% - 4.75%

Term

5-10 y ea r loans

Industrial

Retail Shopping Centers

Multi-Family Apartments

Ofﬁce

The performance presented is based on portfolios managed for our proprietary insuran c e assets. These assets fall outside of our GIPS firm de f inition and therefore not su b j e c t to the

input, calculation, presentat ion, and disclosure requireme n t s of GIPS. Gross-of-fees ret u r n s are calculated on a monthl y basis by taking market val u e s which use a spread pricing

process and contain cash fl o w s that are inclusive of regu l a r P&I payments, loan advances , loan payoffs, new loans, payment reversals, late charg e s , curtailments, and prepayment

premiums and then geometrica l l y linking the results to pro d u c e annual returns shown. Net-o f - f e es returns are calculated by deducting a hypothetical ma n a g e m e n t fee (20 bps) from

the gross return on a mont h l y basis and geometrically lin k i n g the results to produce ann u a l returns shown. The hypothet ical management fee is equal to the highest fee from a n y fee

schedule currently offered f o r the strategy shown. While fee schedules can change ove r time, any amended fee resu l t i n g from a change will not be retroactively applied to

performance history, but wil l rather be applied on a pr o s p e c t ive basis from the point of change. The annual managemen t fee will vary according t o the size of the account, and will

depend on the type of inve s t m e n t vehicle selected. The perfo r m a n c e above is offered as Supple m e n t a l Information only. Performanc e shown for less than one y e a r is not annualized.

Further information regarding applicable fee schedules is available upon request. Past performance does not guarantee of future re s u l t s .

The Barclays Corporate A In d e x includes both corporate and non-corporate sectors. The corporate sectors are Industr i a l, Utility, and Finance, whi ch include both U.S. and no n - U . S .

corporations. The non-corpora t e sectors are Sovereign, Supr a n a t i o nal, Foreign Agency, and For e i g n Local Government. The Index does not reflect fees, bro k e r a g e commissions,

taxes or other expenses of investing. The Barclays Corp A index is the “A” compon e n t of the Barclays U.S. Corpo r a t e Investment Grade public bon d index. The index does not contain

commercial mortgages and is not a typical performance b e n c h m a r k for a commercial mortgage loan portfolio. The credit q u a l i ty and loss profile of our Commercial Mortgage Loan

portfolio is viewed as bein g similar to that of a sin gle-A rated corporate bond po r t f o l i o . As such, the Barclays Cor p A index was chosen by the General Account client after many years

of negotiation and experimen t a t i o n with various other performa n c e indices in an effort to gauge the contribution of in v e s t i n g in a portfolio of commerci a l mortgages relative to that of

a portfolio of similar qual i ty public corporate bonds ov e r the same investment horizon . Investors cannot directly invest in an in d e x .

This information is propriet a ry and cannot be reproduced or distributed. Certain info r m a t i o n may be received from sourc e s Voya Investment Management ("Voya IM") considers reli-

able; Voya IM does not rep r e s e n t that such information is a c c u r a t e or complete. Certain state m en t s contained herein may const i t u t e "projections," "forecasts" a nd other "forward-

looking statements" which do not reflect actual results and are based primarily upo n applying retroactively a h y p o t h e t i c a l set of assumptions to cert a i n historical financial data. Actual

results, performance or even t s may differ materially from those in such statements. Any opinions, projections, fo r e casts and forward-looking sta t e m e n t s presented herein are valid

only as of the date of th i s document and are subject t o change. Nothing contained h e r e i n should be construed as (i) an offer to buy any secur i t y or (ii) a recommendation as to the

advisability of investing i n , purchasing or selling any security. Voya IM assumes no obligation to update any f o r w a r d - l o o k i n g information.

Voya Investment Management Co . LLC (“Voya”) is exempt fro m the requirement to hold an Australian financial servic e s license under the Corporati o n s Act 2001 (Cth) (“Act”) in

respect of the financial se r v ices it provides in Australi a . Voya is regulated by the SEC under US laws, which di f f er from Australian laws.

This document or communicati o n is being provided to you on the basis of your repres e n t a t i o n that you are a wholesale client (within the meaning o f section 761G of the Act), and must

not be provided to any oth e r person without the written consent of Voya, which may be withheld in its absolute discretion.