Voya Finl: has 'serious concerns' on TCIM’s conduct

Voya Financial, Inc. (NYSE: VOYA) has expressed "serious concerns" regarding the conduct of TOMS Capital Investment Management (TCIM), a major shareholder, following TCIM’s recent public campaign against the company. In a letter to Voya’s board of directors, TCIM criticized management for strategic indecisiveness and a lack of urgency in addressing the company’s persistent trading discount relative to its peers. The hedge fund has called for a formal strategic review, including the potential sale of the company, arguing that Voya’s underperformance is due to poor governance and a failure to act in shareholders’ best interests.

Voya’s response, while not detailed in public filings, signals a growing tension between the board and activist investors. TCIM has highlighted Voya’s strong Retirement and Investment Management segments, which account for 89% of adjusted operating earnings, as evidence that the company is undervalued. However, the firm also pointed to the Benefitfocus acquisition as a key factor in the company’s declining valuation, noting that shareholders favored buybacks at the time the decision was made.

The situation underscores broader challenges in the asset management industry, including fee compression and consolidation trends. As TCIM continues to push for change, Voya faces mounting pressure to demonstrate decisive leadership and restore investor confidence.