June 1 - Activist investor Toms Capital Investment Management wrote to the board of Voya Financial on Monday urging the company to evaluate strategic options, among them a potential sale, saying the insurance and investment management firm continues to trade at a discount versus peers.
In the letter, the hedge fund - which counts itself among Voya’s largest shareholders - attributed the firm’s “persistent underperformance” and its valuation gap to what it described as "management’s strategic indecisiveness and diminished credibility." The letter said those factors have kept the stock from closing the gap with comparable companies.
Voya Financial did not immediately respond to a request for comment.
The stock has climbed roughly 9% so far this year, leaving the company with a market capitalization of about $7.36 billion, according to data compiled by LSEG. By comparison, the article noted peers Principal Financial Group and Franklin Resources have posted larger gains in the same period, rising 17.5% and 29.9% respectively.
Voya’s business oversees about $1.1 trillion in assets under management and administration, the company reports on its website. In its letter, Toms Capital nonetheless reiterated that it views Voya as a financially strong firm and said the retirement and investment management units have grown net assets and outperformed rivals.
The activist investor added that several asset managers that could be logical acquirers had signaled interest in deals, and that those firms’ target profiles map closely to Voya’s characteristics.
Context and implications
The request from Toms Capital places pressure on Voya’s board to consider formal reviews of strategic alternatives. The activist cited both valuation and leadership questions as drivers of underperformance, while also acknowledging areas of operational strength within retirement and investment management businesses.
At this stage, the company’s response and any subsequent actions - including engagement with potential buyers or other strategic moves - were not reported.