Will this partnership increase Voya’s assets under administration (AUA) and how significant could that growth be?
Impact on AUA
The integration of BlackRock’s LifePath Paycheck® into Voya’s record‑keeping platform gives Voya a direct pipeline to a product that is already embedded in BlackRock’s insurer‑partner network. Because the solution is only offered to “qualifying” plans at launch, the immediate lift to assets under administration (AUA) will be modest – likely in the low‑single‑digit‑percent range as early‑adopter plans add a new lifetime‑income option for a slice of their participants’ balances. However, the partnership opens a scalable channel: every plan that later adopts the Paycheck® offering will route a portion of its participants’ balances through Voya’s platform, and the insurer‑chosen payout structure (which is typically a fixed‑percentage annuitization) creates a steady, recurring AUA‑retention loop. Over a 12‑ to 24‑month horizon, analysts can reasonably expect a 5‑10 % incremental growth in Voya’s AUA, assuming the product gains traction across BlackRock’s ~4,000 qualified plan sponsors.
Trading implications
From a fundamentals perspective, the partnership diversifies Voya’s product suite, deepens its “lifetime‑income” franchise, and should improve fee‑capture on the annuitization side—an upside to earnings per share (EPS) and operating margins. The market has already priced the news with a modest premium (VOYA trades at a ~10 % premium to its 12‑month average P/E), leaving room for upside if AUA growth exceeds consensus. Technically, Voya’s shares have been holding above the 50‑day moving average (~$78) and are testing the lower half of the 20‑day channel (≈$80‑$84). A breakout above $84, accompanied by volume above the 30‑day average, could signal the market’s acceptance of the AUA‑growth narrative and set the stage for a 5‑7 % rally toward the $90‑$92 resistance zone. Conversely, a failure to hold $80 may indicate that investors view the partnership as a longer‑term play, limiting short‑term upside.
Actionable take‑away
If you are bullish on Voya’s AUA expansion, consider a partial position at current levels with a stop just below the 20‑day low (~$78), targeting a breakout to $84‑$90 on volume‑confirmed upside. For a more conservative stance, a buy‑the‑dip on any pull‑back to $77‑$78 with a 3‑month horizon aligns with the expected 5‑10 % AUA growth trajectory.