Fixed income was a key driver for a flows turnaround last quarter for a publicly traded firm's asset manager.

Matt Toms Voya Investment Management CEO

In the second quarter of 2024, Voya Investment Management [profile] brought in $4.151 billion in net inflows, according to the Q2 2024 earnings report released a week ago (on Tuesday, July 30) by the team at Voya Financial, Inc. (VOYA, Voya IM's parent company). That's a a $4.227-billion net flows improvement quarter-over-quarter and an $8.329-billion net flows improvement year-over-year.

On an earnings call last Wednesday (July 31), Mike Ward, an analyst with Citi, asked what drove the "super strong rebound" in Voya IM's net flows. Matt Toms, CEO of Voya IM, credited the institutional channels in particular. (Voya's Q2 2024 earnings supplement reveals that institutional flows accounted for 75.5 percent of Voya IM's net inflows last quarter.)

"Fixed income through the insurance and pension channel really stood out. We have very strong performance at the right time in the fixed income cycle where we see demand," Ward told analysts on the call. "Also, our privates and alts businesses continue to perform quite well. We have more fund launches coming at the end of the year, and we continue to grow new capabilities there. That's the key underlying driver."

Yet Toms sees strength in Voya IM's retail channels, too.

"International retail has been quite strong on the back of the broader array of strategies we acquired a couple of years ago," Toms told analysts on the call. "Within the U.S., we're seeing our model business, our fixed income business and our private equity secondary interval fund business continue to resonate in the marketplace."

Voya IM brought in $50 million in Q2 2024 adjusted operating earnings before income taxes, up 19 percent Q/Q but flat Y/Y. As of June 30, 2024, Voya IM had $389.068 billion in AUMA, up 1.2 percent Q/Q and up 2 percent Y/Y. 

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