Voya Life Companies Asset Allocation Solutions

Transcription

1 Voya Life Companies Asset Allocation Solutions Voya Global Perspectives Portfolio Voya Retirement Portfolios Custom Allocation Models This material must be preceded or accompanied by the variable universal life (VUL) insurance product prospectus and the Guide to Variable Universal Life Insurance, which explain the VUL policy s features, fees and charges. Before investing, carefully consider the investment objectives, risks, and charges and expenses of the variable universal life insurance policy and underlying variable investment options. This and other information is contained in the prospectuses for the variable universal life insurance policy and the underlying variable investment options. Obtain a prospectus for the underlying variable investment options from your registered representative, by calling , or from voya.com and read them carefully before investing. Variable universal life insurance products are not guaranteed, are subject to investment risk, and will fluctuate in value. There is no guarantee that any variable investment option will meet its stated objective.

2 The importance of asset allocation Congratulations on your decision to purchase a variable universal life insurance policy from a Voya life insurance company. In conjunction with your Voya financial representative, you have the opportunity to choose from our solid Asset Allocation solutions when selecting your variable investment options. With a variable universal life insurance policy, you ll own a life insurance policy that, in addition to providing a death benefit, has the investment potential to supplement your future income. You have a choice of over 55 variable investment options (VIOs) from which you can choose to place your money. To help make your VIO choices easier, the Voya life companies offer potential asset allocation solutions. Each diversified to match to your risk tolerance and investment time horizon (more on those subjects in the pages that follow). Each designed to make it easier to understand for you and your Voya financial representative. Each choice focuses on the investment expertise of Voya Investment Management Co., LLC and their Multi-Asset Strategies and Solutions team. Voya Global Perspectives Portfolio The Voya Global Perspectives Portfolio invests in a balanced mix of asset classes, with the overall allocations overseen by Voya Investment Management Chief Market Strategist Douglas Cote, CFA. The portfolio strategy cuts through the noise of conflicting market signals to identify the key market drivers, all within a broadly diversified framework. The portfolio strategy is based on insights from Voya Global Perspectives, a comprehensive program that helps investors interpret market trends and form investment decisions. Voya Retirement Portfolios The three retirement portfolios invest primarily in a universe of Underlying Funds that are passively managed index funds that, in turn, invest directly in a wide range of portfolio securities (like stocks and bonds). Although an investor may achieve the same level of diversification by investing directly in a variety of the Underlying Funds, each portfolio provides investors with a means to simplify their investment decisions by investing in a single diversified portfolio. ā ā Custom Allocation Models The Custom Allocation Models represent five sample asset allocation strategies that you can use as a guide when choosing your variable investment options. The collection of asset allocation models were designed for a broad range of hypothetical investment scenarios covering varying risk tolerances and investment time horizons. When using the Custom Allocation Models, you and your Voya financial representative have the freedom to choose from any of the Voya life companies variable investment options. The questionnaire which follows will help you determine your risk tolerance and investment time horizon. It is strongly suggested you work with your Voya financial representative to complete this all important questionnaire, whether you choose to invest in an Voya Retirement Portfolios, Voya Global Perspectives Portfolio or select your own variable investment options using the Custom Allocation Models as your guide. The Voya Global Perspectives Portfolio and Voya Retirement Portfolios described in this brochure are investment options offered in a variable universal life insurance policy. The Custom Allocation Models are not investment options and are provided only for informational purposes as a guide to help you choose your variable investment options. All portfolios will fluctuate in value, and there is no guarantee that any investment option will achieve its stated objective. Stocks are more volatile than bonds, and portfolios with a higher concentration of stocks are more likely to experience greater fluctuations in value than portfolios with a higher concentration in bonds. Foreign stocks and small and midcap stocks may be more volatile than large cap stocks. Investing in bonds also entails credit risk and interest rate risk. Generally investors with longer timeframes can consider assuming more risk in their investment portfolio. The Voya Global Perspectives Portfolio and Voya Retirement Portfolios are actively managed and the asset allocation rebalanced over time. Refer to the prospectus for more information about the specific risks of investing in the various asset classes included in any Portfolio.

3 What is asset allocation? Some call it an art. Others refer to it as a science. No matter the label, asset allocation is the key to constructing the most suitable portfolio for you within your variable universal life insurance policy. In this case, your portfolio is the variable investment options you select within your variable universal life insurance policy. Again, working with your Voya financial representative is important in determining the best potential asset allocation strategy for you. Let s face it. How often does the term asset allocation come up in your everyday conversation? Like most people, probably not too often. So what is asset allocation? It is a personal investment process through which you determine how to invest your money among different asset classes such as stocks, bonds and money market instruments (i.e. cash and cash equivalents). By putting your eggs in different baskets, the assets in an investment that is performing well may help protect against the assets at risk in an investment that is under-performing. Over the years, investing in the stock and bond markets has helped millions of Americans achieve their financial goals. However, while the markets have historically risen over the long-term, there have been periodic bumps in the road. One way to help smooth the ride has been through an investment strategy called asset allocation. How important is asset allocation in meeting your financial goals? According to the landmark study Determinants of Portfolio Performance, * the largest single factor in performance representing nearly 94% of a portfolio s total return simply was the asset allocation decision. Thus, choosing how much a portfolio should hold in any type of asset rather than focusing on market timing or choosing particular stocks is vital. This study continues to be a key benchmark when thinking about one s own financial planning. * Financial Analysts Journal (July August 1986 and May June 1991), Brinson, Hood, Singer, and Beebower. Determinants of portfolio performance 94% Asset allocation 4% Stock selection 2% Market timing It s not possible to entirely eliminate market risk from your investment portfolio. However, through prudent asset allocation you have the opportunity to strike a balance between risk and return that s appropriate for you. As you can see from the chart below, from 1997 through 2011 a portfolio consisting of all stocks generated the best performance, but also exposed investors to the most risk. On the other hand, allocating assets among U.S. stocks, foreign stocks, and bonds led to solid returns among a combination of less overall risk. Tempering risk through asset allocation Annual return 5.45% 5.99% 5.91% Annual risk 16.59% 12.20% 12.11% 100% U.S. stocks 75% U.S. stocks 60% U.S. stocks 25% Foreign stock 15% Foreign stocks 25% Bonds Source: Morningstar, Inc. Past performance is no guarantee of future results and these returns are not reflective of any Voya Retirement Portfolios. U.S. stocks represented by the S&P 500 Index, foreign stocks represented by the MSCI EAFE Index, and bonds represented by the Lehman Aggregate Bond Index. Returns are from and include the reinvestment of all distributions. It is not possible to make investments directly in an index. Risk measured by standard deviation, a statistical measure of the range of a portfolio s performance. When a portfolio has a high standard deviation, its range of performance has been very wide, indicating that there is a greater potential for volatility. 3

4 Making a choice that s right for you Take a few minutes to complete this questionnaire and tally your score to determine if the Voya Global Perspective Portfolio, or a Voya Retirement Portfolio or Custom Allocation Model might best fit your needs. It has been designed to measure your ability (time horizon) and willingness (risk aversion) to accept uncertainties in your policy s performance. The total score suggests which risk profile may be most appropriate for you. 1 2 Time horizon How soon do you plan to begin to use the money in this investment portfolio? A. 1 3 years B. 4 9 years C years D. Over 15 years For how many years do you expect to withdraw money? A. I will withdraw it all immediately in a lump sum distribution B. 1 3 years C. 4 9 years D years E. Over 15 years 3 Investment goal My primary investment goal is to: A. Protect capital I am a conservative investor. I am prepared to accept low returns in an attempt to protect capital because risk must be low. B. Maintain wealth I am looking for better than the average return, but desire low risk in my investment portfolio. I want to protect the wealth I have accumulated, but am willing to consider growth investments to help offset any negative effects inflation may have on my investments. C. Meet financial goals I am a moderate investor who wants a balanced investment portfolio. I d like an investment strategy that will help me achieve medium- to long-term financial goals over time. D. Growth assets I am an assertive investor potentially earning enough income to invest for capital growth. I want a balanced investment portfolio, but more aggressive investments may be included. Prepared to accept some potential losses and moderate risks, I would like to accumulate assets over the medium to long term as my primary objective. E. Aggressively build long-term wealth I am an aggressive investor prepared to compromise safety of principal to pursue potentially high long-term returns. My investment choices are diverse, and I realize they carry with them a high level of risk. Security of capital is secondary to the potential for wealth accumulation. 4 Expected income What do you expect your total income and investment earnings to do over the next 10 years? A. Decline significantly B. Decrease somewhat C. Stay the same D. Improve E. Increase substantially 4

5 5 6 $60,000 $40,000 $20,000 Risk tolerance I would best describe my tolerance for capital fluctuation as: A. I can t accept any loss of principal. B. Low. I am able to accept only infrequent and very modest losses during difficult phases in a market cycle. C. Moderate. I am able to accept only a few quarters of negative returns during difficult phases in a market cycle. D. High. I am able to accept negative annual returns during difficult phases in a market cycle. If you were able to potentially improve your investment returns by taking on more risky investments that fluctuate in value over time, such as stocks, would you: A. be unlikely to take more risk? B. be willing to take a little more risk with some of your overall investment portfolio? C. be willing to take a lot more risk with some of your overall investment portfolio? D. be willing to take a lot more risk with your entire portfolio? Loss aversion Use the following graph to answer questions #7 and #8. 22% decline 10% decline Continued loss If your investment portfolio declined by an additional 10% to $35,100 the following year as Period 2 represents, what would you most likely do? A. Sell all the positions and try to avoid investments with steep decline possibilities. B. Sell only the losing investments and move the money to safer investments. C. Sell nothing. D. Buy more as the losing investments may represent opportunity. Financial sophistication When it comes to investing, I would describe myself as: A. having little to no experience. B. having some experience managing investments such as mutual funds and/or variable annuities. C. experienced in managing investments such as mutual funds and/or variable annuities and individual stocks and/or bonds. D. very experienced in a broad range of investments. Which of the following best describes how you monitor your investments? A. I do not monitor my investments nor do I have them reviewed. B. I reviewed my investments when I initially invested, but have not monitored nor reviewed them since. C. I monitor and review my investments periodically, but not regularly. D. I monitor my investments or have them reviewed regularly, at least once each year. 7 $0 Portfolio value If your investment portfolio worth $50,000 declined in value to $39,000 within one year as Period 1 represents (as did the S&P 500 in 2002 when it declined by 22%), what would you most likely do? A. Sell all the positions and move the money to safer investments. B. Sell only the losing investments. C. Sell nothing. Period 1 Period 2 D. Buy more as the losing investments may represent opportunity. 5

6 Your score Voya Investment Management Co., LLC designed the questionnaire scoring system to assign individuals to a portfolio or custom allocation model based on their responses from the risk tolerance questionnaire. Like the questionnaire itself, the scoring system is divided into two distinct sections: Time horizon score Risk tolerance score Each section is scored separately, and then combined to form a total score. Voya Investment Management Co., LLC uses the total score to suggest a portfolio or custom allocation model. The sections below discuss this process. Time horizon score The time horizon portion of the scoring is taken from questions 1 and 2. The score on these two questions determines the time horizon level. The time horizon level is used to assign various time horizon factors. Each time horizon level allows the investor access to certain options and restricts access to others. Investors that score into the shorter time horizon are mapped to more conservative options. This is consistent with Voya Investment Management Co., LLC s belief that individuals with shorter-term horizons should hold portfolios that are more conservative. Within each time horizon level, Voya Investment Management Co., LLC allows an investor s risk tolerance to determine the appropriate option. If an investor s risk tolerance suggests an option that is restricted (due to the time horizon level), Voya Investment Management Co., LLC recommends a more appropriate option for that investor s specific time horizon level. This process allows conservative investors with short time horizons to score into an option matched to their risk tolerance while at the same time protecting aggressive investors with short time horizons from excess risks. Risk aversion score The risk aversion portion of the scoring is taken from questions 3 through 10. The score on these questions determines the risk aversion level. Where the primary purpose of the time horizon score is to find the investors ability to take on risk, the main goal of the risk aversion portion of the questionnaire is to capture how much risk the investor is willing to take. The risk aversion level is comprised of many different concepts uncovered by behavioral economists in recent decades, including loss aversion, risk-reward tradeoff, inflation risk, and the ability to stay the course. An investor who feels uncomfortable with extreme volatility or the possibility of large losses to their portfolio is placed in a more conservative option, while an investor who is willing to accept greater risk is placed in a more aggressive option. Risk tolerance score Find two scores. 1. Time horizon score 2. Risk aversion score We discuss this process below. Time horizon score calculation Add the time horizon score from questions 1 and 2. The score on these questions determines the time horizon level. The table below shows the point value of each answer choice in the time horizon section: Time horizon Time horizon Q1 Score Q2 Score A 2 A 0 B 3 B 1 C 9 C 2 D 14 D 3 E 7 Time horizon score = sum of values of question 1 through question 2 6

7 Risk aversion score calculation Take the risk aversion score from questions 3 through 10. Voya Investment Management Co., LLC assigns a point value to each response according to the investor s risk aversion. The highest points are awarded to the most aggressive answer choice. The risk aversion score ranges from zero (most conservative) to 100 (most aggressive). The points assigned to each question are as follows: Investment Goal Expected Income Risk Tolerance Risk Tolerance Q3 score Q4 score Q5 score Q6 score A 0 A 0 A 0 A 0 B 20 B 4 B 4 B 4 C 40 C 6 C 7 C 10 D 60 D 7 D 15 D 15 E 80 E 10 Loss Aversion Continued Loss Financial Sophistication Financial Sophistication Q7 score Q8 score Q9 score Q10 score A 0 A 0 A 0 A 0 B 4 B 4 B 2 B 2 C 10 C 7 C 8 C 7 D 20 D 20 D 10 D 10 Risk aversion score = sum of values of question 3 through question

8 Selecting a portfolio or model Your portfolio The summary scoring grids below facilitate the final portfolio recommendation process by combining the time horizon and risk scores. The scoring methodology focuses on four key aspects of an investor s risk tolerance their time horizon, specific investment goals and objectives, capacity for and attitude toward risk, and level of financial sophistication. To use the scoring grids, find the time horizon score on the horizontal axis and the risk score on the vertical axis. The intersection of these two points is the recommended portfolio. These are the only tables needed to map a person to a potential portfolio or model. You will need to calculate the time horizon score and the risk aversion score, then use the grid to find the portfolio or model that matches your risk aversion and time horizon. Summary scoring grids Risk aversion score Voya Global Perspectives Portfolio (Voya GP) Time horizon score N/A N/A Voya GP Voya GP N/A Voya GP Voya GP Voya GP N/A Voya GP Voya GP N/A Voya GP Voya GP N/A N/A Voya GP Voya GP N/A N/A Voya Global Perspectives Portfolio = Risk aversion score Voya Retirement Portfolios Time horizon score N/A N/A Moderate Moderate N/A Moderate Moderate Moderate Growth N/A Moderate Moderate Growth Growth N/A Moderate Growth Growth Growth N/A Moderate Growth Growth Growth Custom Allocation Models Time horizon score Your Retirement Portfolio = Note: If an investor has a time horizon score less than 10 or a risk aversion score less than 21, then the Voya Retirement Portfolios may not be an appropriate investment option. The investor should speak to an investment professional before selecting a portfolio. Risk aversion score Conservative Conservative Moderate Moderate Growth Conservative Moderate Moderate Moderate Growth Conservative Moderate Moderate Growth Growth Moderate Moderate Growth Growth Growth Moderate Moderate Growth Growth Aggressive Custom Allocation Model = 8

9 Client I have completed the questions provided with the Asset Allocation Solutions brochure and understand that: The asset allocation portfolios are subject to change. There is no guarantee that losses will be limited by utilizing the information provided. Client Signature Date Investment Professional I have reviewed the information provided in the Asset Allocation Solutions brochure for the above client and understand that: The client s risk tolerance and investor type may change. It is my responsibility to discuss investment suitability prior to the above client making a purchase. The Voya Global Perspectives Portfolio, Voya Retirement Portfolios and Custom Allocation Models are guides and provide no guarantee against loss. Investment Professional Date 9

10 Voya Global Perspectives Portfolio One investment option for many investing questions Finding a suitable investment mix and sticking with it through market change is a challenge made easier by a globally diversified portfolio that adjusts to the signals that drive capital markets. The goal of the Voya Global Perspectives Portfolio is to help investors stay invested despite market volatility. Voya Global Perspectives Portfolio Investment Principles: Broad global diversification increases opportunity Diversified global investments give the portfolio a broad foundation. Helps avoid gaming diversification changing allocations based on perceived short-term trends which tend to expose a portfolio to unintended risks. Equal-weighted allocations keep portfolios evenly balanced over time Precludes any one asset class from having excessive influence on performance. May allow smaller asset classes with higher expected returns to contribute more to positive results. Tactical allocation based on market fundamentals may help protect returns Company earnings reports typically provide signals about the direction of the economy and the markets. May help protect the portfolio from sustained market declines and poorly timed tactical moves. Portfolio allocations Each quarter, we measure the year-over-year earnings growth of the companies in the S&P 500 Index. If earnings growth changes from positive to negative, half of the equities are sold and reinvested in a defensive allocation with more fixed income exposure. If growth changes from negative to positive, the portfolios are restored to their original base allocations. 60% Base allocation 40% Equities Defensive allocation 70% 30% Fixed income Base allocation Defensive allocation Equities (%) (%) U.S. Large Cap Equities U.S. Mid Cap Equities U.S. Small Cap Equities Global Real Estate International Equities Emerging Market Equities Fixed income U.S. Investment Grade Bonds U.S. Government Bonds Global Bonds U.S. High Yield Bonds

11 Voya Retirement Portfolios The Voya Retirement Portfolios are a group of three portfolios that were developed in conjunction with Voya Investment Management Co., LLC to address specific investment goals. Whether your retirement plan calls for moderate, moderate growth, or growth investing, there s a Retirement Portfolio to meet your needs. Each Portfolio may invest in a variety of Underlying Funds, sub-advised by many of the best known and most respected asset managers. Used in conjunction with a Voya Life Companies VUL Product, the Voya Retirement Portfolios provide the potential to meet a host of financial goals. The Voya Retirement Portfolios may be re-balanced periodically to return to the target allocations and inflows and outflows may be managed to attain target allocations. These allocations, however, are targets and each Portfolio s allocations could change substantially as the Underlying Funds asset values change due to market movements and portfolio management decisions. Periodically, each Portfolio s target allocation strategy will be re-evaluated, and each Portfolio will be rebalanced to reflect changes. Purchases, redemptions and reinvested income will be allocated in accordance with these targets. Underlying Funds may be added or subtracted from the targeted mix of Underlying Funds. 11

12 Voya Retirement Portfolios 50% Bonds 50% Stocks Voya Retirement Moderate Portfolio Investment objective: Total return, consisting of capital appreciation and income. Investment strategy: Under normal circumstances, the Portfolio invests in a combination of Underlying Funds according to a formula that over time is intended to reflect an allocation of approximately 50% of the Portfolio s assets in equity securities and 50% of the Portfolio s assets in fixed-income securities. The actual amount of Portfolio assets invested may vary at any time and may range from 35% to 65% of its assets in equity securities and from 35% to 65% of its assets in fixed-income securities. 35% Bonds 65% Stocks Voya Retirement Moderate Growth Portfolio Investment objective: Total return, consisting of capital appreciation and income. Investment strategy: Under normal circumstances, the Portfolio invests in a combination of Underlying Funds according to a formula that over time is intended to reflect an allocation of approximately 65% of the Portfolio s assets in equity securities and 35% of the Portfolio s assets in fixed-income securities. The actual amount of Portfolio assets invested may vary at any time and may range from 50% to 80% of its assets in equity securities and from 20% to 50% of its assets in fixed-income securities. 25% Bonds Voya Retirement Growth Portfolio Investment objective: 75% Stocks Total return, consisting of capital appreciation and income. Investment strategy: Under normal circumstances, the Portfolio invests in a combination of Underlying Funds according to a formula that over time is intended to reflect an allocation of approximately 75% of the Portfolio s assets in equity securities and 25% of the Portfolio s assets in fixed-income securities. The actual amount of Portfolio assets invested may vary at any time and may range from 60% to 90% of its assets in equity securities and from 10% to 40% of its assets in fixed-income securities. All portfolios will fluctuate in value, and there is no guarantee that any investment option will achieve its stated objective. Stocks are more volatile than bonds, and portfolios with a higher concentration of stocks are more likely to experience greater fluctuations in value than portfolios with a higher concentration in bonds. Refer to the prospectus for more information about the specific risks of investing in the various asset classes included in the Voya Retirement Portfolios. 12 Portfolio Advisor: Voya Investment Management Co., LLC

13 Voya Life Companies and Voya Investment Management To help build its asset allocation solutions, the Voya Life Companies partnered with Voya Investment Management Co., LLC s Multi-Asset Strategies and Solutions team. With a wide range of asset allocation capabilities, their experience spans both domestic and international markets. The asset allocation process uses Voya Investment Management Co., LLC s extensive research platform to model multiple dimensions of opportunity and risk across asset classes. Sound capital markets theory as well as the latest research in behavioral finance form the foundation of Voya Investment Management Co., LLC s investment philosophy and processes. Their asset allocation process reflects their current expectations about future returns, risks and potential market interactions. 13

14 Custom allocation models When purchasing a variable universal life insurance policy, the Voya Life Companies Asset Allocation choices also allows for building your own portfolio from among the available variable investment options using Custom Allocation Models. Your Voya financial professional will assist you in the process based on the Custom Allocation Model score achieved in the questionnaire found earlier in this brochure. 25% Stock 75% Bonds 7% Large Cap Growth 10% Large Cap Value 5% Mid Cap 2% International 1% Emerging Markets 60% Bonds 15% High Yield Bonds Conservative Model Investment objective: The Model seeks to provide current income and long term growth of capital. Investment strategy: The Model invests in a combination of asset classes according to a fixed formula that over time should reflect an allocation of approximately 25% in equity securities and 75% in fixed income securities % Stock 55% Bonds 65% Stock 35% Bonds 80% Stock 20% Bonds 9% Large Cap Growth 16% Large Cap Value 7% Mid Cap 3% Small Cap 5% International 3% Emerging Markets 2% Real Estate (REITs) 40% Bonds 15% High Yield Bonds 14% Large Cap Growth 21% Large Cap Value 11% Mid Cap 4% Small Cap 8% International 5% Emerging Markets 2% Real Estate (REITs) 25% Bonds 10% High Yield Bonds 16% Large Cap Growth 23% Large Cap Value 13% Mid Cap 5% Small Cap 13% International 8% Emerging Markets 2% Real Estate (REITs) 12% Bonds 8% High Yield Bonds 18% Large Cap Growth 25% Large Cap Value 16% Mid Cap 7% Small Cap 17% International 10% Emerging Markets 2% Real Estate (REITs) 5% Bonds Moderate Model Investment objective: The Model seeks to provide growth of capital and current income. Investment strategy: The Model invests in a combination of asset classes according to a fixed formula that over time should reflect an allocation of approximately 45% in equity securities and 55% in fixed income securities. Moderate Growth Model Investment objective: The Model seeks to provide growth of capital and a low to moderate level of current income. Investment strategy: The Model invests in a combination of asset classes according to a fixed formula that over time should reflect an allocation of approximately 65% in equity securities and 35% in fixed income securities. Growth Model Investment objective: The Model seeks to provide growth of capital and some current income. Investment strategy: The Model invests in a combination of asset classes according to a fixed formula that over time should reflect an allocation of approximately 80% in equity securities and 20% in fixed income securities. Aggressive Growth Model Investment objective: The Model seeks to provide growth of capital. Investment strategy: The Model invests in a combination of asset classes according to a fixed formula that over time should reflect an allocation of approximately 95% in equity securities and 5% in fixed income securities. 95% Stock 5% Bonds All variable investment options will fluctuate in value, and there is no guarantee that any investment option will achieve its stated objective. Stocks are more volatile than bonds, and portfolios with a higher concentration of stocks are more likely to experience greater fluctuations in value than portfolios with a higher concentration in bonds. Foreign stocks and small and midcap stocks may be more volatile than large cap stocks. Investing in bonds also entails credit risk and interest rate risk.

15 Asset class Variable investment option Your personal portfolio Bonds Voya Intermediate Bond Portfolio Voya Limited Maturity Bond Portfolio Voya Global Bond Portfolio Voya Intermediate Bond Portfolio Voya U.S. Bond Index Portfolio Cash Voya Government Liquid Assets Portfolio Emerging Markets VY JPMorgan Emerging Markets Equity Portfolio High Yield VY Pioneer High Yield Portfolio International American International Fund Voya International Index Portfolio VY T. Rowe Price International Stock Portfolio VY Templeton Foreign Equity Portfolio Large Cap Growth American Growth Fund Fidelity VIP Contrafund Portfolio Voya Russell TM Large Cap Growth Index Portfolio Voya Large Cap Growth Portfolio Large Cap Value American Growth-Income Fund Fidelity VIP Equity-Income Portfolio Voya Growth and Income Portfolio Voya Index Plus LargeCap Portfolio Voya Multi-Manager Large Cap Core Portfolio Voya Russell TM Large Cap Index Portfolio Voya Russell TM Large Cap Value Index Portfolio VY T. Rowe Price Equity Income Portfolio Voya U.S. Stock Index Portfolio VY Invesco Comstock Portfolio VY Invesco Growth and Income Portfolio Neuberger Berman AMT Social Responsive Portfolio Mid Cap VY Baron Growth Portfolio Voya MidCap Opportunities Portfolio Voya Index Plus MidCap Portfolio Voya Russell TM Mid Cap Growth Index Portfolio VY T. Rowe Price Diversified Mid Cap Growth Portfolio Real Estate VY Clarion Global Real Estate Portfolio Small Cap VY Columbia Small Cap Value II Portfolio Voya Index Plus SmallCap Portfolio VY JPMorgan Small Cap Core Equity Portfolio Voya Russell TM Small Cap Index Portfolio Voya Small Company Portfolio Voya SmallCap Opportunities Portfolio Total Portfolio 100% 15

16 The Custom Allocation Models are provided solely for informational purposes and they should only be used as a guide in selecting variable investment options offered in a VUL policy. The Models do not represent investment funds or portfolios and they are not registered as securities or investment companies with the Securities and Exchange Commission under Federal securities laws. An investor should speak to an investment professional before selecting variable investment options offered in a VUL policy. Variable universal life (VUL) insurance combines the protection and tax efficiencies of life insurance with the investment potential of a comprehensive selection of variable investment options. The insurance component provides the death benefit coverage and the variable component gives you the flexibility to potentially increase the policy s cash value. This information does not include a discussion of premiums, cost of charges, policy administrative fees and expenses, mortality and expense risk charges, surrender charges or any other charges that are associated with a VUL policy and would affect your policy s cash value. Many of the variable investment options offered in VUL policies are similar in name and investment objective to publicly available mutual funds managed by the same investment manager. However, it is important to note that variable investment options are available only as investment options in variable universal life insurance policies and variable annuity contracts issued by life insurance companies. They are NOT directly offered or made available to the public. Due to the differences in size, expenses, cash flows and tax matters, the performance of the comparable mutual fund will be different than the performance of the variable investment option. In addition, past performance of a mutual fund or variable investment option is no indication as to future performance. Variable life insurance products are sold by registered representatives and by prospectus only. Using diversification/asset allocation as part of your investment strategy neither assures nor guarantees better performance and cannot protect against loss in declining markets. Variable universal life insurance products are issued by ReliaStar Life Insurance Company of New York (Woodbury, NY) and Security Life of Denver Insurance Company (Denver, CO) and distributed by Voya America Equities, Inc. Within the state of New York, only ReliaStar Life Insurance Company of New York is admitted, and its products issued. All are members of the Voya family of companies. Not FDIC/NCUA Insured Not A Deposit Of A Bank Not Bank Guaranteed May Lose Value Not Insured By Any Federal Government Agency 2017 Voya Services Company. All rights reserved. CN /17/2017 Voya.com