Large Bank Supervision Forum 2023

Principal Risk Factors – Voya Senior Loan Strategy

 Risk is inherent in all investing. The following are the principal risks associated with investing in the Voya Senior Loan Strategy. This is not, and is not intended to be, a description of all risks of investing in the Strategy.  Credit Risk: The Strategy invests a substantial portion of its assets in below investment grade senior bank loans and other below investment grade assets. Below investment grade loans involve a greater risk that borrowers may not make timely payment of the interest and principal due on their loans. They also involve a greater risk that the value of such loans could decline significantly. If borrowers do not make timely payments of the interest due on their loans, the yield on a portfolio invested under the Strategy will decrease. If borrowers do not make timely payment of the principal due on their loans, or if the value of such loans decreases, the value of a portfolio invested under the Strategy will decrease.  Interest Rate Risk: The yield on senior loans is directly affected by changes in market interest rates. If such rates fall, the yield may fall. Also, if overall interest rates on loans decline, the yield may fall and the value of the loans may decrease. When market interest rates rise, there may be a delay in the rise in the yield on loans due to a lag between changes in such rates and the resetting of the floating rates on the loans. There may also be a delay due to the effect of LIBOR floors, which establish a lower limit on the LIBOR portion of a loan’s yield. Rises in market interest rates must exceed applicable LIBOR floors before such rises will affect the yield on a loan with a LIBOR floor.  Leverage Risk: The Strategy may borrow money for investment purposes. Borrowing increases both investment opportunity and investment risk. In the event of a general market decline in the value of assets such as those in which the Strategy invests, the effect of that decline will be magnified in a portfolio invested under the Strategy because of additional assets purchased with the proceeds of borrowings.  Limited secondary market for loans: Because of the limited secondary market for loans, a portfolio invested under the Strategy may be limited in its ability to sell loans in its portfolio in a timely fashion and/or at a favorable price.  Demand for loans: An increase in demand for loans may adversely affect the rate of interest payable on new loans acquired by a portfolio invested under the Strategy, and it may also increase the price of loans in the secondary market. A decrease in the demand for loans may adversely affect the price of loans in a portfolio invested under the Strategy, which could cause such portfolio’s value to decline.

For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to the general public.

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Bank Advisory Biographies

Randy S. Cameron Senior Vice President | Co-Head of Voya Commercial Bank Advisory Group

During his more than 30 years in the industry, Randy Cameron has become a thought and practice leader in community, regional and national banks in the development of commercial relationships and portfolios. A credit executive for more than 25 years, Randy has broad experience, industry leadership and skills in building teams and systems to deliver disciplined credit cultures in banks intent on achieving safe and sound loan growth. Randy has developed, structured and managed large complex national credits, capital market credit products and regional middle market relationships. He has authored articles and taught classes on sales management, equipment finance, asset based and leveraged lending. As a proven bank analyst, Randy has a deep understanding of what makes banks work and the delicate risk-price balancing of assets, liabilities, and capital. Randy has degrees in finance and accounting, an MBA from the University of Utah, and is a distinguished graduate of the Stonier Graduate School of Banking at the University of Delaware. Dave Wood’s career in banking spans more than 30 years and ranges from Money Center to Large Regional to Community banks. As a commercial lender he has negotiated and booked complex, multi-faceted transactions for multinationals to core working capital and term credits to local businesses while working for financial institutions on both coasts. As a training executive, he trained hundreds of bankers in beginning and advanced applications of commercial lending, accounting and trade finance. He has extensive experience as a senior credit administrator working with principal, marked to market and counterparty risk exposures. As a credit policy executive he managed policy development, exposure definition & aggregation systems. During his years in treasury credit administration, he was responsible for global dollar clearings exposures to international banks and developed revised bank analytics. Dave now assists commercial banks build earning asset programs to accelerate performance and effectively deploy capital. Dave Wood Managing Principal | Co-Head of Voya Commercial Bank Advisory Group

For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to the general public.

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