40/86 Advisors

What 40/86 Advisors does

40|86 Advisors, Inc. is a fixed income investment management firm headquartered in Carmel, Indiana, and a wholly-owned subsidiary of CNO Financial Group. The firm was formally established in its current form in September 2003 under the leadership of Eric R. Johnson (CIO of CNO Financial Group and President of 40|86 Advisors), although firmographic records reference an organizational lineage dating to 1981. As of December 31, 2025, the firm had approximately $30.5 billion in assets under management spanning investment grade corporate bonds, private placements, emerging market corporates, residential and commercial mortgage-related securities, asset-backed securities, municipal bonds, high-yield corporate bonds, leveraged loans, government securities, derivatives, CLOs, private equity, and private credit.

The firm operates a single integrated fixed income platform that combines portfolio management, in-house credit research, structured securities expertise, and direct commercial mortgage loan origination. Operations are supported by a back-office technology stack (infrastructure, reporting, reconciliation, and trading systems) overseen by Chief Information Officer Richard W. Burke, with specialized heads covering leveraged loans/CLOs (Eduardo Piedra), structured securities (Jerimy D. Horner), commercial mortgage (Andrew J. Aiello), fixed income research (Zandra M. de Haai), and portfolio management (Jess E. Horsfall). The firm employs 101–250 people and is described internally as a credentialed workforce where all employees hold college degrees and nearly half hold an advanced degree or professional designation.

Revenues are derived from investment advisory fees calculated as a percentage of assets under management (typically expressed in basis points), with the entire client base consisting of CNO Financial Group's affiliated insurance subsidiaries, including Bankers Life, Washington National Insurance Company, and BCLIC. The firm has no external distribution channels or third-party mandates described in the input, making 40|86 a captive internal asset manager whose growth is mechanically tied to the reserve and general account needs of its parent company's insurance subsidiaries.

Name

40/86 Advisors

Legal name

40|86 Advisors, Inc.

Website

https://4086.com

Company type

Private

Founded year

2003

Operating status

Operating

Headcount range

101–250 employees

Short description

40|86 Advisors is a captive fixed income investment management subsidiary of CNO Financial Group, managing approximately $30.5 billion in assets across investment grade corporates, structured products, mortgage-related securities, and alternative credit exclusively for CNO's affiliated insurance subsidiaries.

Ownership category

akta.pro rank

Product category

Fixed Income Investment Management

NAICS

Portfolio Management and Investment Advice (523940), Portfolio Management and Investment Advice (52394)

SIC

Investment Advice (6282)

akta.pro primary industry

Institutional Consultants & Fiduciary Management (Investment Consulting) (FSAAAGAJ)

Keywords

• Fixed income management
• Institutional asset management
• Fixed income securities
• Insurance portfolio management
• Investment advisory services

Headquarters

HQ city

Carmel

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales, Others

Revenue model

1. Investment Advisory Fees: 40|86 Advisors generates revenue through investment advisory fees calculated as a percentage of assets under management (AUM). As the investment arm of CNO Financial Group, the firm manages approximately $30.5 billion in fixed income assets, with fees typically structured as basis points on AUM.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels1 record

Core offering

40|86 Advisors is a fixed income investment advisor managing approximately $30.5 billion in assets under management as of December 31, 2025, for the insurance company subsidiaries of its parent CNO Financial Group. The firm provides comprehensive investment management across 14 fixed income asset classes including investment grade corporate bonds, private placements, emerging market corporates, residential and commercial mortgage-related securities, asset backed securities, municipal bonds, high-yield corporate bonds, leveraged loans, government securities, derivatives, CLOs, private equity, and private credit.

Product overview

40|86 Advisors operates as a fixed income investment advisory firm managing approximately $30.5 billion in assets under management as of December 31, 2025. The firm offers a unified investment management platform that encompasses multiple fixed income strategies including investment grade corporate bonds, private placements, emerging market corporates, residential mortgage-related securities, asset backed securities, commercial mortgage loans, municipal bonds, high-yield corporate bonds, leveraged loans, government securities, derivatives, CLOs, private equity, and private credit. The integrated approach combines portfolio management, fixed income research, structured securities expertise, and commercial mortgage lending capabilities under unified leadership.

Differentiator

Problem solved

Functional benefit

Products and services

• Fixed Income Investment Management Core investment advisory service managing approximately $30.5 billion in assets under management as of December 31, 2025, focused on fixed income securities across multiple asset classes including investment grade corporate bonds, private placements, EM corporates, residential mortgage-related securities, asset backed securities, commercial mortgage loans, municipal bonds, high-yield corporate bonds, leveraged loans, government securities, derivatives, CLOs, private equity, and private credit. Designed for institutional insurance company clients (specifically the insurance subsidiaries of CNO Financial Group including Bankers Life, Washington National Insurance Company, and BCLIC) requiring fixed income portfolio management that matches liability duration and risk profiles.

Named customers1 record

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators1 record

Recent moves5 records

Expansion highlights3 records

Direct peers

• Western Asset Management: Large dedicated fixed income manager offering investment grade corporate, high-yield, structured products, and leveraged loan strategies—comparable to the breadth of 40|86's fixed income capabilities.
• Voya Investment Management: Insurance-affiliated fixed income and structured products manager with roots in ING's US insurance operations, providing general account fixed income and alternative credit solutions comparable to 40|86's insurance-focused platform.
• Nuveen (TIAA): Fixed income and alternative credit asset manager affiliated with TIAA's insurance and retirement complex, offering comparable general account fixed income, CLO, leveraged loan, and private credit solutions.
• Conning & Company: Specialist insurance asset manager serving insurer general accounts with fixed income, structured products, and private credit capabilities—closely aligned with 40|86's specialist insurance-focused fixed income platform.
• Aegon USA Investment Management: Captive institutional investment manager for Aegon's US insurance subsidiaries, focused on fixed income and structured products for the general account—directly comparable to 40|86's role serving CNO's insurance balance sheets.
• MetLife Investment Management: Institutional asset management arm of MetLife that manages the general account of MetLife's insurance subsidiaries, with deep fixed income and private credit capabilities directly comparable to 40|86's captive insurance asset management model.
• Prudential Investment Management: In-house investment management affiliate of Prudential Financial, managing general account fixed income, commercial mortgages, and private credit for affiliated insurers—closely analogous to 40|86's role inside CNO Financial Group.
• New York Life Investment Management: Asset management subsidiary of New York Life Insurance Company providing fixed income, private credit, and real estate solutions primarily for the parent's general account, mirroring the captive insurance asset manager structure of 40|86.

Broad incumbents

• BlackRock: Largest global asset manager with deep fixed income, private credit, and CLO capabilities serving both insurance and institutional clients—a broad incumbent that defines the competitive ceiling for specialized managers like 40|86.
• Pacific Investment Management Co (PIMCO): One of the world's largest fixed income managers with broad multi-sector capabilities across IG, HY, structured products, and alternatives—a broader incumbent against which 40|86's specialized insurance book competes for talent and mandates.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about 40/86 Advisors