Voya Adds Non-Core Fund Investing to Adviser Managed Accounts

Voya Financial Inc. is looking to further entice advisers to use its managed account offering by expanding investment options beyond the core defined contribution retirement plan lineup.

On Tuesday, the firm announced a new adviser managed account option called Primary Plus, which allows third-party registered investment advisers using a managed account through Voya to include investment options outside a 401(k) or DC plan lineup.

“Until today, RIA firms have been able to offer recommendations under their Advisor Managed Account solution using the plan sponsors core menu of selected investment options,” Jason White, director, advisory services at Voya, said via email. The new offering “expands those options with funds not specified in a plan’s core investment lineup as an opportunity to increase a participant’s investment exposure to an asset class.”

The announcement comes as Voya and other providers seek to put managed accounts front –and center in the push toward personalizing workplace retirement investing and advice. This February, the firm launched a dual qualified default investment alternative that shifts participants from a target-date fund series into a management account at an age set by the plan sponsor, or generally around 50. That same month, the firm announced a new team focused on its managed account business specifically.

“Overall, market conditions continue to drive the overall need for advice and at Voya, we know that personalized advice helps employees feel more financially and emotionally prepared for retirement,” White said. “Also in today’s market, advisers have strong relationships with the plan sponsors. By supporting their respective AMA solutions, it allows the adviser to recommend their program that they know and support to their clients.”

Voya noted total assets in its managed account solutions have risen by 27% from the first quarter of 2023 through first quarter 2024.

About 38% of plan sponsors offer a professionally managed account service for participants, according to PLANSPONSOR’s 2024 DC Plan Benchmarking Study. PLANSPONSOR is a sister publication of PLANADVISER.

Voya’s Primary Plus is addressing an “increasing interest from advisers” to provide participants with funds not included in the core investment lineup, according to the announcement. The solutions can include investment vehicles, such as lower-priced collective investment trusts and mutual funds, as well as alternatives funds, such as real estate investment trusts or commodities funds, according to White.

“Only participants that elect to enroll in the RIA firm’s AMA solution would have access to these non-core investment options based on the recommended allocation of their DC assets by the RIA firm’s AMA program,” he wrote.

Voya’s adviser-managed account program currently supports more than 400 retirement plans and is positioned as a collaborative offering with advisers and RIA firms, according to White.

“The advisers who have the relationships with plan sponsors can recommend their programs and direct them to Voya where we support and help promote their programs through our marketing, communication, contact centers and plan advisers,” he said.

Managed accounts have gotten some recent attention among the plaintiffs’ bar with a lawsuit filed against an engineering firm alleging participants did not get the best outcomes when defaulted into a managed account; meanwhile, a suit alleging TIAA pressured participants into managed accounts was moved ahead by a U.S. federal court judge after an earlier dismissal.

“Our focus is to create a pressure-free experience where employees have the information, guidance or advice they need to make good decisions,” White said in describing the new Voya offering. “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.”