Since Singapore-headquartered StashAway first launched a selection of model portfolios back in 2017, the pioneering digital investment platform has expanded its collection to 12 carefully curated portfolios built from ETFs across equities, fixed income and cash savings, and across geographies and developed as well as emerging markets. Clients can invest in a single portfolio, or they can build a diversified set of portfolios that best suit their risk and reward preferences, and all with ease of access and at very low cost. More recently in September, StashAway and global asset management group BlackRock announced they would offer a suite of four globally diversified multi-asset model portfolios built from BlackRocks analytics and ETFs and available to investors via the StashAway app. The deal was another win for StashAway as the firm continues to build out the digital wealth offering for which the founders have raised some USD74 million of seed funding to date, and which already boasts significantly north of USD1 billion in AUM. StashAways ambitions also now extend to HNW investors with the June launch of StashAway Reserve, opening up access to private equity, venture capital and cryptocurrency investments for accredited buyers in Singapore. Hubbis met recently with Michele Ferrario, CEO and one of the three co-founders of the platform, to find out about progress to date, to hear of the plans afoot for further expansion of the product suite, and to learn more about StashAways ongoing international expansion into Asia and also the Middle East.

GrowthProducts

Michele opens the discussion by highlighting the diversity of intelligent investment options available via the platform for the mass affluent and also HNW clients the firm targets.

Very simply, we make it easy and cost effective for anyone to invest intelligently, and we target clients at any stage of their investment journey, he reports. We help people diversify and build exposure to a wide range of asset classes, and we have also expanded further into the private banking space with more recent offerings across private equity, venture capital, angel investing and cryptocurrencies.

So far, the firm has built its core proposition in Singapore, and expanded into Malaysia, Thailand, Hong Kong, and the UAE, and is licensed appropriately in each jurisdiction. We focus on quality and solidity, and we remain true to our initial mission of employing technology to drive a better investment service for clients than is offered by the banks, Michele states.

Three pillars

He explains the firm has three pillars to support this proposition. The first is simplicity, not just built around its products, but also the customer journey. You can open an investment account in just 7 minutes in Singapore (helped by the MyInfo protocol) and in as little as 12 minutes in our other countries. This speaks to our easy and user-friendly interface. But simplicity of the journey does not mean a lack of sophistication underneath.

The second pillar is cost. We have a transparent and straightforward fee structure our management fees are only 0.2% to 0.8% annually.This isa fraction of what mainstream operators charge elsewhere.

The third pillar is the intelligence of the investment framework. Our 12 core portfolios are diversified across asset classes and based on our proprietary analysis around key economic data that determines asset allocation, he reports. Our investment framework, ERAA, aims to keep our clients risk exposures constant across each stage of the economic cycle, while maximising long-term returns.

Drilling down into the offering

Michele offers a little more insight into each of the 12 core investment portfolios StashAway offers, aside from the newer Blackrock portfolios and outside the HNW-targeted products. The 12 portfolios each comprise around seven to 13 ETFs and reflect different levels of risk, from the highly conservative to the higher risk, but they do not include esoteric assets such as cryptos, which are gated away for the wealthier accredited investors.

He says the choices on offer allow investors a variety of equity exposures across countries, regions, sectors, developed markets, emerging markets, and so forth. The fixed income includes government and top-flight debt, credit, convertibles, FRNs, inflation linked bonds, and maturities ranging from months to over 20 years.

The allocations within each model portfolio can also change, but the changesare modest and irregular. We are not playing around with allocations, Michele states. For example, over the last couple of years they have refined the fixed income exposures to offer more inflation-linked paper and FRNs, while on the equity front, they are weighted more to Australia and Canada for exposures to raw materials and energy stocks. And that is partly why we have outperformed in 2022, he adds.

Horses for courses

In partnership with BlackRock, we recently added another option for clients to invest in one of four portfolios managed with them, spanning from highly conservative to 100% equity. Michele notes that Blackrocks four model portfolios offer a slightly different logic from StashAways core ERAA models that are driven by economic data.

You can see ERAA products as risk centric, as we aim to keep risk exposures constant across macro cycles, he explains. Meanwhile, BlackRock portfolios aim to provide clients with broad market exposure and mimic benchmarks, so their performance will be more closely related to their equity and bonds benchmarks. I should add there is no hidden arrangement with Blackrock, we remain entirely aligned with clients.

A third option we offer is our flexible portfolios, where clients can tweak model portfolios to their investment preference, or build portfolios from scratch. They can also invest in single ETFs to get targeted exposure to, for example, the S&P 500, or specific themes like the emerging markets or healthcare.

Eyeing the HNW market

He adds that StashAways expansion into HNW-targeted products such as PE, VC, cryptos and so forth, brings a wide range of potential clients into their radar who are currently served by private banks that are continuously raising the bar as to the levels of AUM they will service. These days, he remarks, USD 5 million does not get you much attention with the banks, so we are beginning to shift attention to this space.

StashAway Reserve is their new HNW offering and gives access to the HNW products he had mentioned earlier, as well as to a wealth advisor. We remain a fully self-service platform, for our main clients and even for HNWIs, but for the higher categories of wealth, you gain access to these selected accredited investor products as well as wealth advisors that provide personalised wealth advisory services to each client.

Bite-sized access to specialist assets

Michele also offers more detail on the PE, VC and angel investing offerings, explaining that major brand name managers might need commitments of several million dollars, but StashAway offers HNWIs access to the private markets with commitments from as low as USD$50,000 annually.

This, he explains, is achieved by fractionalising these private markets investments.

Yes, illiquidity is still a concern for investors, but firstly we are working on providing some liquidity and secondly we deal only with accredited investors who understand the risks and who can plan ahead for this lack of liquidity in this segment of their broader portfolios.

An outstanding proposition

Michele does not mince his words when he states that StashAways proposition is outstanding in terms of its user interface, its products, and the intelligence of its investment framework.

And as to the performance of our products, we have outperformed markets across our portfolios, and across almost all risk points in every year from 2018 onwards, he states. We then underperformed in 2021 but so far, in 2022 we have again outperformed. All in all, I believe we have done well for our investors over our five years of operation.

Key Priorities

Michele says his first mission is to make it as easy as possible for clients to benefit from volatile markets over the next three, six or 12 months.

Secondly, he wants to continue to strengthen the firms position in new markets. Last year, we went live in Hong Kong, Thailand, and Dubai, and we want to build those robustly, he states.

The third target is to expand the HNW offering. We launched StashAway Reserve in June this year, and we have some interesting plans in this segment of the market, he reports.

Talent and the snowball effect

Michele draws the conversation towards a close by remarking that twenty or so years ago, the winning wealth managers were the ones that had the best private bankers or the best RMs.

But I think probably already today, and most certainly 10 years from now, the winning wealth managers will be seen as those with the best software engineers, the best product managers, the optimal strategies, and it is platforms such as ours that can best attract and hold on to those types of talents.

In doing so, we will be able to continue to expand the offering and enhance the platform.

His final word is to highlight the proof of this view in the vital area of client acquisition. The biggest driver for our growth by far since we launched five years ago is word of mouth, he reports. These commendations have grown to achieve a snowball type effect, certainly in Singapore and now in our newer markets. I can report that organic client acquisition is approaching 90% of our new signings. Now clearly, tricky markets limit activity and new client numbers, but we anticipate this will be a lull rather than a major impediment to growth. In summary, we are well on track, and really excited about the future.

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Digital Investment Platform StashAway's CEO Surveys the Journey to Date and Maps out the Way Ahead -Asian Wealth Management and Asian Private Banking...

In a little over three weeks, we'll turn the page on 2022, much to the delight of professional and everyday investors. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all fallen into respective bear markets this year, while the bond market has produced its worst return ever.

Although there haven't many places to safely put your money work in the short run, one historically surefire opportunity for long-term-minded investors during a stock market downturn is to put their money to work in dividend stocks.

Image source: Getty Images.

Why dividend stocks? To begin with, companies that regularly dole out payments to their shareholders are almost always profitable. It'd be difficult to continue paying cash to shareholders if a company's long-term growth outlook wasn't on a firm foundation.

To add to this point, income stocks are usually time-tested. This is to say that they've navigated their way through countless recessions and economic downturns. Having an established business can go a long way to reducing volatility during inevitable bear markets.

But maybe best of all, dividend stocks simply outperform. According to a 2013 report from J.P. Morgan Asset Management, a division of JPMorgan Chase, companies that initiated and grew their payouts over a 40-year stretch (1972-2012) handily outpaced the returns of non-dividend-paying companies. When compared over the same four-decade time frame, the dividend-paying stocks left the nonpayers eating dust: 9.5% annualized return versus 1.6% annualized return.

However, not all dividend stocks are created equally. Investors would prefer the highest yield possible with the least amount of risk. The problem is that yield and risk tend to move in lockstep once income stocks hit high-yield status (4% and above).

But this doesn't mean all high-octane dividend stocks are bad news. In fact, some can provide steady, inflation-crushing income on a monthly basis. If you want to generate $200 in dividend income each month in 2023, all you have to do is invest $19,500 (split equally) into this ultra-high-yield dynamic duo.

The first ultra-high-yield income stock that can help you pocket $200 in monthly dividend income is mortgage real estate investment trust (REIT) AGNC Investment (AGNC -0.20%). AGNC has sustained a 10% or greater yield in 13 of the past 14 years, which shows that its current 14.65% yield isn't a typo or anomaly.

Whereas most REITs aim to acquire and lease property, mortgage REITs purchase mortgage-backed securities (MBS). Their operating model usually involves borrowing money at the lowest short-term rate possible, and then using that capital to buy MBSs that offer higher long-term yields.

What makes mortgage REITs such a favorite among dividend investors (aside from their absurdly high yields) is the predictability of their performance. Keeping a close eye on Federal Reserve monetary policy and the interest rate yield curve will tell investors everything they need to know.

The current operating environment for AGNC is undoubtedly difficult. The Fed's hawkish monetary policy has rapidly increased short-term borrowing rates, which in turn lowers its net interest margin -- the yield AGNC receives from the MBSs it owns minus the average borrowing rate. The interest rate yield curve is also flat to inverted. It's the opposite of an ideal scenario for AGNC but is nevertheless the perfect opportunity to pounce on what should be relatively short-term weakness.

The interesting thing about the interest rate yield curve is that it spends a disproportionate amount of time sloped up and to the right. This is to say that longer-dated, maturing bonds carry higher yields than shorter-dated bonds. Since periods of economic expansion last considerably longer than recessions, it would only be logical to expect the movement in the yield curve to favor AGNC and its net interest margin over the coming years.

Additionally, higher interest rates aren't all bad news for AGNC Investment. Though it's made short-term borrowing costlier, it's having a positive impact on the yield of the MBSs the company is buying. Over time, this should help widen the company's net interest margin.

The final selling point on AGNC, which I've touched on countless time before, is the composition of its investment portfolio. Out of $61.5 billion in investments, just $1.7 billion comprises credit-risk transfers and nonagency assets. Put another way, virtually all of its owned assets are of the "agency" variety.

An agency security is backed by the federal government in the event of default. With this added protection in its sails, AGNC can deploy leverage as it sees fit to compound its profits and sustain a mammoth monthly dividend.

Image source: Getty Images.

The second ultra-high-yield dividend stock that can help you take home $200 every month in 2023 is business development company (BDC) PennantPark Floating Rate Capital (PFLT 0.09%). PennantPark has been paying $0.095/month for more than seven years and is currently yielding 9.98%. When coupled with AGNC's 14.65% yield, we're talking about an average yield for this dynamic duo of 12.32%!

BDCs are companies that invest in middle-market businesses (i.e., those with small-cap and micro-cap valuations). The reason BDCs focus on companies with valuations of $2 billion or less is simple: They have limited access to debt and credit markets. With fewer financing options available, companies willing to take on debt from smaller/unproven middle-market companies can generate above-average yields.

BDCs either focus on purchasing equity or debt. Although PennantPark held $154.5 million in preferred stock and common equity as of the end of September 2022, 87% of its $1.16 billion investment portfolio was tied up in debt. Thus, it's primarily a debt-driven BDC.

The first thing to note is that 99.99% of PennantPark's debt holdings are in first-lien secured notes. First-lien secured debt would be first in line for payment in the event that a middle-market company sought bankruptcy protection. The choice to avoid other debt tiers helps to reduce some of the risk associated with investing in less-proven/smaller companies.

However, don't think for a moment that PennantPark and its team aren't doing their homework. As of the end of the third quarter, just two of its 125 investment were delinquent on their payments, representing a mere 0.9% of its investment portfolio on a cost basis.

But the best thing about PennantPark is that 100% of its $1.01 billion debt portfolio has variable interest rates. With the nation's central bank aggressively raising interest rates to combat historically high inflation, PennantPark is recognizing higher yields on every single note it holds. The company hasn't had to lift a finger yet has seen its weighted average yield on debt investments jump to 10% from 7.4% over the past 12 months (ended Sept. 30).

The Fed isn't done hiking rates, either. And even when the central bank does hit its peak for this hiking cycle, Fed Chair Jerome Powell has been clear that rates will remain elevated for some time. This is all fantastic news for PennantPark Floating Rate Capital's variable-rate-driven debt investment portfolio.

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Want $200 in Monthly Dividend Income in 2023? Invest $19,500 in This Ultra-High-Yield Duo - The Motley Fool

Lifeplus International, a creator of wellbeing products, broke ground Friday (Dec. 9) on the first of four new buildings at its flagship manufacturing facility in Batesville. The company plans to invest $24 million and create 150 jobs within five years. Lifeplus currently has its corporate headquarters and a facility in Batesville where it employs a combined 250 people who develop nutritional supplements for customers throughout the world. Another 350 Lifeplus employees work in Europe.

Lifeplus is looking forward to this next chapter in the growth and expansion of our company, Lifeplus owner Robert Christian said. Were excited about the good paying jobs this expansion will create here in our community and about the increased production capability and resulting market share that it will give us both here in the U.S. and worldwide.

This will be the first of four new buildings for Lifeplus that will not only increase the companys footprint in Batesville to about 250,000 square feet but will also double the companys local workforce.

Its always a great a day when we get to celebrate our homegrown companies, said Gov. Asa Hutchinson. Lifeplus has been a great community partner in Batesville. I am confident that this expansion will take Lifeplus to new heights, and before long, they will be a household name not just overseas, but also throughout Arkansas. This is just another example of how Arkansas has the tools in place to help businesses grow and succeed in the global economy.

Created more than 30 years ago, Lifeplus manufactures and distributes more than 140 dietary supplements and nutritional products at the Batesville facility. Lifeplus takes raw ingredients and mixes them into formulations for powders, tablets, and capsules under strict quality control management to assure purity, potency, and correct dosage. The products are then boxed for shipment, most of which head to facilities in Great Britain and the Netherlands for distribution to numerous countries throughout Europe.

While most Lifeplus customers are in Europe, this expansion will provide a greater opportunity for the company to significantly grow its footprint in North America. Through this expansion, Lifeplus will now be able to manufacture many of its existing products as gummies, which have grown in popularity, as well as make gummies for third parties. Lifeplus will also now be able to manufacture a number of its nutritional products in other forms, such as soft gels, that are not currently manufactured in house.

In addition to building a new facility, Lifeplus is purchasing an existing 28,000-square-foot building in Batesville for additional manufacturing space.

More here:
Lifeplus investing $24 million in Batesville to grow 150 jobs - talkbusiness.net

Question: My financial advisor has made one trade this entire year and has left $7,500 in cash in my Roth IRA since January. I had $600,000 in assets at the start of the year. Some minimal reallocation would have been appropriate, right? And at a minimum I shouldnt have any cash in my Roth, right? What should I do?

Answer: It sounds like youre overdue for a sit down with your adviser to review your portfolio strategy and to get first-hand answers to your questions. Indeed, an adviser should make clear to you under what circumstances theyll make changes to investment accounts and what their firms process is for making sure money isnt sitting in cash and is getting invested, says certified financial planner Daniel Forbes of Forbes Financial Planning. Ask the adviser to clarify these questions, says Forbes. (Looking for a financial adviser? This tool can help match you with an adviser who might meet your needs.)

That doesnt mean your financial adviser should be tinkering with your accounts all the time. Indeed, Vanguard recommends rebalancing every six months or so, while Morningstars Christine Benz says to do it every year, though others recommend monthly. And some pros say its common for some advisers to only rebalance on an annual basis. More than anything, I suggest you ask your adviser for a discussion or an explanation, says certified financial planner Steve Zakelj of Flatirons Wealth Management. That all said, again, your adviser was remiss in not communicating his or her strategy to you.

Have an issue with your financial adviser or looking for a new one? Email picks@marketwatch.com.

Heres the other question: How much would the rebalancing have benefited you or not? Surprisingly, there is so much correlation between stocks and bonds this year that there isnt nearly as much opportunity to rebalance as one might think. If bonds were up, or even flat, there might be some chance, but as bonds are down as well, the opportunities are limited, says certified financial planner Charles Green of Springboard Asset Management. (Looking for a financial adviser? This tool can help match you with an adviser who might meet your needs.)

And as certified financial planner Jarrod Sandra of Chisholm Wealth Management notes: When everything moves in tandem, it doesnt provide a lot of opportunity. If the portfolio only consists of 3 to 5 funds, then perhaps they havent moved outside of the ranges to allow for reallocation or rebalancing, says Sandra.

So what about that cash in your Roth? Some pros say it isnt necessarily concerning that there was cash in your Roth IRA, depending on your exact circumstance: Are you saying you had $600,000 in your Roth IRA? Or are there other accounts? If you have a $600,000 Roth IRA with $7,500 cash, Im not sure Id be upset, says Zakelj. Indeed, many firms or advisers like to, or are required to, maintain a 1-2% cash balance at all times. Given that stocks and bonds are down this year, having money in cash was most likely the best place to be, says Zakelj.

Zakelj also adds that he would want to know if the other account is a taxable account where rebalancing may create negative tax consequences. What assets are you invested in? Some investments dont allow for shorter-term rebalancing, says Zakelj.

It also may depend on the age of your Roth, some pros say. Theres a 5-year rule on Roth conversions that requires you to wait before withdrawing any converted balances, contributions or earnings, regardless of your age; so depending on your other cash reserves, it might have been prudent to keep a modest amount of this investment as cash because you would be able to access these funds in case of emergency, pros say.

If you have other sufficient emergency assets, these funds should be invested. That said, holding it as cash has probably saved you some money this year, says certified financial planner Danna Jacobs of Legacy Care Wealth.And certified financial planner Charles Sachs points out that, Since RMDs are not required for Roths, I would think that account would be invested to hold the highest expected return asset within your portfolio.

But this still comes back to the question of communication with your adviser: You didnt know what he or she was doing and why, and thats a problem. If you cant remedy that situation to your liking, find someone new. (Looking for a financial adviser? This tool can help match you with an adviser who might meet your needs.)

Have an issue with your financial adviser or looking for a new one? Email picks@marketwatch.com.

Questions edited for brevity and clarity.

The advice, recommendations or rankings expressed in this article are those of MarketWatch Picks, and have not been reviewed or endorsed by our commercial partners.

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I have $600,000 invested, but my financial adviser has only made one trade this year, and left $7,500 in cash in my Roth IRA. Is it time to get rid of...

A brutal year for markets has sent investors looking for new ways to diversify their portfolios, and the Amplify International Enhanced Dividend Income ETF (IDVO) aims to offer two different popular solutions in one package. The three-month-old fund is an actively managed strategy that combines dividend-paying international equity holdings with covered call writing, an income strategy used frequently by fund sub-advisor Capital Wealth Planning. Income investing has been a popular theme this year, as inflation and declining stock markets have spurred investors to seek out dividends. And international funds are also gaining traction. According to Strategas Research, emerging market equity was the second most popular category for ETF inflows in November. Funds for China and Europe also saw positive flows. Tim Seymour, the CIO of Seymour Asset Management and a CNBC contributor, is a portfolio consultant and research provider for the fund. He said that the expected weakening of the dollar and shift away from tech stocks make international investing particularly attractive in the coming years. "International investing will be very different in the next 18 months than it has been in the last 18 months," Seymour said. The fund's largest exposures are currently in materials, financials, technology and energy. It holds American depositary receipts, or ADRs, instead of purchasing the stocks on foreign exchanges. Gold Fields is the single biggest holding in the fund, taking up nearly 4% of the portfolio. "We think we're in an environment where gold can finally outperform," Seymour said. Over time, the fund may add to its positions in international banks as the global economic picture becomes less uncertain, Seymour said. The fund is small so far, with about $4 million in assets under management, but its sister fund Amplify CWP Enhanced Dividend Income ETF (DIVO) has about $2 billion in assets. The covered call portion of the strategy sets the ETF apart from many other international funds. The idea is to write call options on stocks that the portfolio holds. That caps the potential upside if one of stocks proves to be a runaway winner, but it does produce a steady income stream for the fund. Capital Wealth Planning CIO Kevin Simpson said that because the fund focuses on large, well-known companies, the derivatives market is deep even for international names. He added that the fund managers may actually be a bit more aggressive in writing calls in the international fund than in the U.S. version. Christian Magoon, CEO of Amplify, said that the success of the U.S. fund DIVO led to conversations with financial advisors and allocators about the demand for an international version. The covered call strategy addition may actually be more important in an international fund, he said. "It's not unusual for international stocks to suspend or reduce their dividends more frequently than U.S. stocks do," Magoon said. Since its launch in September, the Amplify International Enhanced Dividend Income ETF has a total return of about 7%. The fund has an expense ratio of 0.65%.

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This new ETF combines international and income investing, and both themes are hot - CNBC

Liability-driven investing by U.S. corporate pension plans has shown its worth by preserving plans funded status, even through the current economic turmoil and market volatility. Plans that have pursued LDI managing assets to ensure they can meet future pension liabilities have seen their funded levels increase, given strong equity market returns in the prior two years and the decrease in liabilities from the higher rates this year. It has put them in a better position to consider offloading pension risk from their balance sheet, such as via a pension risk transfer.

Despite the improved funded profile of corporate pensions, plan sponsors are reacting to the Federal Reserves interest rate stance by carefully reevaluating their current LDI techniques and their impact on the absolute returns of their portfolios, which typically have significant allocation to long bonds. U.S. plan sponsors have also evaluated their portfolio strategies to see if there are any lessons to be learned from the U.K. bond market panic in October. That situation was triggered by U.K. pension funds use of derivatives, part of their LDI strategy that backfired due to an unprecedented spike in the yields of British gilts, U.K. government bonds.

Taking a dynamic approach to pension risk management, what are best practices and investment opportunities to consider as sponsors look ahead? What are key success factors for a PRT transaction that plan sponsors should keep in mind?

Andrew Hunt, CFA, FIA

Head of Fixed Income Solutions, Systematic Edge Investment Solutions

Allspring Global Investments

Sheena McEwen

Vice President, Head of Distribution

Legal & General Retirement America

Richard Fong

Director, Investment Strategy

Parametric Portfolio Associates

Thomas J. Kennelly

Managing Director and Senior Investment Strategist, Investment Solutions Group

State Street Global Advisors

Wednesday, December 14, 2022

2:00 p.m. ET

Plans in general have had a good year to date, driven by rising discount rates, and LDI has performed as expected, said Thomas J. Kennelly III, senior investment strategist in the Investment Solutions Group at State Street Global Advisors.

When reviewing plans segmented by profile and funded status, less well-funded plans have benefited this year because their liabilities have gone down faster than their assets, as they generally have lower hedge ratios, he said. But well-funded clients also did well, as their funded status has remained very stable. The firm is focused on surplus management and hibernation solutions for both types of plans.

The recent U.K. crisis holds lessons for U.S. plan sponsors, even though their LDI practices differ in some respects, Kennelly said. Most notable [in the U.S.] is less use of derivatives and greater use of corporates and Treasuries. Where derivatives are used, the key factor is how much leverage is employed and how well collateralized are you? We prefer to err on the conservative side. His takeaway from London for U.S. sponsors: Understanding the total picture [of your investments] from a governance, liquidity and risk-management perspective is the biggest lesson learned.

Looking ahead, as plan sponsors navigate the peaks and valleys of the markets across asset classes, there could be a lot of noise that might not be impactful when you look at overall funded status, he advised. The reason is the strength of the LDI approach. Yields are up, equities are down, volatility is higher, but a well-funded, hibernating pension plan has slept well at night.

Is there a risk of LDI contagion from London, or that the same problems could happen here? The answer is no, said Andy Hunt, CFA, FIA, head of fixed income solutions, systematic edge investment solutions, Allspring Global Investments.

U.K. corporate pensions use a very different LDI strategy than U.S. pensions do, with the former adopting far greater use of leverage, exposing them to margin calls when prices drop quickly, he explained. U.K. plans tend to offer inflation-adjusted pensions, and for hedging efficiency they have turned to derivatives to help maximize exposure to inflation-linked bonds. These exposures were in collective funds, and the collateral arrangements supporting the derivatives were impacted during the recent market storm in London, Hunt explained. He added that use of derivatives is much less common with LDI in the U.S. (See chart below)

*Allspring estimate of liability; does not represent any particular corporate plan.Sources: Allspring; Bloomberg, 09-30-22; Bloomberg Long Treasury Index, Bloomberg Long TIPS Index, Bloomberg Long Credit Index, Bloomberg 10+ UK Treasury Index, Bloomberg FTSE Russell ILG over 15 years Index, Bloomberg UK Corporate 10+ BBB or Better Index.

LDI strategies have behaved as they were supposed to this year. Yield increases have outpaced the impact of the negative equity returns. Pension funding has improved through all the [market moves], said David Phillips, CFA, ASA, EA, director of liability-driven investment strategies at Parametric Portfolio Associates.

[U.S. corporate pension] plans in general have had a good year to date, driven by rising discount rates, and LDI has performed as expected.

Thomas J. Kennelly III

State Street Global Advisors

He pointed to the importance of rising rates for improved funded levels. Rising rates generally arent harmful to pension plans because their liabilities fall. The liabilities are based on long-term bond yields and decrease when yields which move with rates rise.

The U.K. bond market crisis was a liquidity crisis, Phillips pointed out, adding that the lesson for U.S. pension plans is to have a prudent liquidity strategy. While U.K. corporate pensions used high leverage and ended up facing unprecedented liquidity needs to cover margin calls, that situation is unlikely to occur here, as U.S. pensions use less leverage and invest in a deeper bond market. However, U.S. pensions should reevaluate their liquidity strategies to ensure they are reliable across all market scenarios.

First and foremost, you need a larger cash buffer if there are derivatives used in LDI, said Richard Fong, CFA, director of investment strategy at Parametric. Plans also need to construct and formalize a liquidity waterfall. This is a playbook through which you are able to obtain liquidity if you run out of cash, he said, referencing a strategy to rank order assets to liquidate should the need arise.

To build a robust waterfall, Fong recommended that pension plans take a customized approach, which includes expanding an overlay program beyond just the liability [matching] assets. If you build the waterfall to include other assets, you significantly reduce the liquidity constraints and problems that materialized in the U.K.

The improved funded status of many pension plans, along with the prospect of facing continued market uncertainty from slowing growth and rising inflation, has led to an environment where plan sponsors are looking at taking some risks off the table. The value proposition of pension risk transfer is its ability to help plan sponsors derisk, said George Palms, CFA, president at Legal & General Retirement America.

Plans clearly understand this value proposition, he said, as their strong funded status allows them to transfer some or all of their pension obligations to an insurance company by purchasing a group annuity contract. The derisking move also allows companies to focus on their core business and to save on Pension Benefit Guaranty Corporation premiums, which continue to increase, Palms added.

We expect that this year will be the largest ever U.S. PRT market, which we estimate at around $55 billion, he said, surpassing the record of $38 billion in 2021. This huge surge in activity is [driven] first and foremost by plan sponsors improved funded status. They have more optionality around potentially doing a PRT transaction and moving some of those liabilities to an insurer.

Markets can move quickly. The speed of the pension plans [decision-making and reaction] needs to be able to match the speed of the markets.

Andrew Hunt

Allspring Global Investments

The PRT trend is only likely to accelerate, according to Palms, as more plans complete their own successful initial transactions or watch others do so. Its built a crescendo of market growth that is going to continue into the next 10 to 20 years, he said.

When it comes to LDI, the question is not why but how. While corporate pension funds that follow LDI strategies have improved their funded status, they are evaluating or revisiting their asset allocation particularly in light of the market volatility and rising interest rates to ensure they are best meeting their plan objectives. That includes exploring customization, adding derivatives where appropriate and bringing in environmental, social and governance factors to enhance overall risk management all of which varies depending on where plans are in their funded status journey.

Customization is always key. Whether its a traditional plan or a cash-balance plan, LDI strategies should be customized to each plans unique set of characteristics, said Phillips at Parametric Portfolio Associates. This becomes more urgent as plans funding situation improves because they move down their glidepath the mix of investments that shift over time toward holding more fixed income, he noted. Customization through curve matching and glidepath management can offer pension funds a more precise matching of assets and liabilities, as well as liquidity management, while they move closer to plan termination, he said.

Customization can be useful across many pension plan objectives, said Fong, Phillips colleague at Parametric. For instance, if you have an underfunded plan that still has a low hedge ratio, you might need a hedge-ratio extension. If you are a plan that is close to a pension risk transfer or hibernation, then youre going to focus on liquidity or building a custom corporate bond portfolio. In all these instances, you need customization, preferably in a separately managed account, for your unique circumstance.

State Street Global Advisors believes in the core-satellite approach to LDI, said Kennelly. The firm deploys this portfolio construction technique, which consists of an index-like core and an actively managed satellite, both for the liability-hedging portfolio and the growth- or risk-assets portfolio.

Customization is always key. Whether its a traditional plan or a cash-balance plan, LDI strategies should be customized to each plans unique set of characteristics.

David Phillips

Parametric Portfolio Associates

The core LDI portfolio targets a duration and hedge ratio with corporates and U.S. Treasuries, Kennelly said, while in the satellite portfolio, active managers provide alpha or the potential for market-beating returns. Customizing across different durations, yield curve, sector and credit quality has always been what we offer.

Each clients funded status drives the composition of the growth portfolio, Kennelly added. For underfunded plans that need return and diversification, their growth portfolio in addition to equities will potentially have private assets, real estate and some opportunistic managers. For well-funded plans far along their glidepath, the growth portfolio is constructed with a tight focus on risk, Kennelly said.

In addition, asset classes with hybrid characteristics can be appropriate, since they have both equity and credit correlations, such as high-yield bonds, emerging market debt and bank loans. We gain our exposure through active managers who can move across these asset classes.

State Street Global Advisors is also seeing increasing interest in derivatives management, which offers greater capital efficiency and fewer disruptions to physical assets. The completion manager repositions the bond futures portfolio, mindful of collateral needs, Kennelly said. As plans move down the glidepath to full funded status, an LDI program aimed at minimizing portfolio risks can be further customized by completion mandates. (See chart below)

Source: State Street Global Advisors

U.S. pension plans are widely regarded as having nominal liabilities, but thats not quite the case, said Allsprings Hunt. We need to remember that final average salary plans have an inflation component through wage growth of active participants. For that reason, pension plans need to diversify their growth portfolio to include inflation-hedging assets, such as commodities and other real assets.

Read: Doing LDI Well in 2023

Derivatives have value for both the growth and liability-hedging portfolio, Hunt added. Derivatives are great tools to help both sides of the pension plan balance sheet that is, both [for] hedging liability risks and shaping return distributions, he said. Yet most U.S. pension plans dont use them at all.

Derivatives can be particularly useful for mature plans, Hunt said, as they face asymmetric risk of relatively modest upside benefits when overfunded but much more financial pain if underfunded. Derivatives can alleviate this asymmetry as plans can sell excessive upside to help buy protection i.e., insurance against downside. While derivatives need close oversight, and the lessons from London outlined earlier are important, the pension fund industry should embrace them more for improved investment efficiency, Hunt said.

Although many corporate plan sponsors mission statements emphasize the importance of ESG investing, their portfolios are often not yet aligned with this mission, said Hunt at Allspring. One of the main challenges is that as plans invest in LDI bonds, [many] long credit bonds are carbon-intensive, he said, referencing the significant long-dated bond issuance by utility, basic materials and energy companies.

The derisking move allows companies to focus on their core business and to save on PBGC premiums, which continue to increase.

George Palms

Legal & General Retirement America

The good news is you can invest around this [problem] successfully, Hunt said, noting that Allspring offers a climate-transition credit strategy that is aligned with the Paris Agreement to move toward a global net-zero emissions economy. Under the strategy, we buy a portfolio that aims to outperform the market benchmark but does so in such a way that it delivers a significantly better carbon footprint. It invests in tomorrows low-carbon emitters and those firms who can successfully make the transition to a low-carbon future economy. He said he expects the ESG lens to continue to grow for LDI over the next five years.

Moving pension obligations off the balance sheet is top of mind for many corporate plans that have improved funded status and have a desire to avoid the continued uncertainty of complex and volatile markets. But what type of pension risk transfer should they pursue? A buyout or buy-in, a full or partial plan termination, or a lump-sum distribution to participants?

Over the past 10 years, both the number of participating insurers offering PRT and the types of transactions have expanded. These new competitors have brought additional capacity and helped the market grow and develop over time, said Palms at Legal & General Retirement America. The deals have also developed beyond the traditional plan-termination buyout that prevailed prior to 2012.

Read: PRT Monitors

Partial buyouts, or lift-outs, where a portion of plan-participant pension obligations typically for retirees are lifted out and transferred to an insurer via a group annuity, have seen an increase in activity over the last decade, said Palms. LGRA has also seen an increase in buy-ins, which are helping to drive overall PRT market growth, he added. These are similar to buyouts, but in a buy-in, the sponsor retains the fiduciary and administrative responsibility for the retirees, [and] the insurer effectively takes over the investment and longevity risk, he said.

Buy-ins are also gaining traction around plan terminations, where they can be used by the plan sponsor over a shorter period of time to effectively lock in their pricing, Palms added. Yet he does not see the growth in buy-ins leading to their becoming the predominant transaction in the U.S., as they are in the U.K, he said.

The overall growth in the PRT market is also being driven by insurers use of reinsurance, Palms said, where the insurance company works with reinsurance providers to cover additional risks. Reinsurance increases the amount of capacity in the PRT marketplace. As more insurers use reinsurance to expand their capacity and manage risk, we expect increased competition in terms of the number of insurers bidding on deals and in pricing to continue, Palms said.

The growth in the PRT market is unlikely to slow any time soon from large deals over $1 billion to smaller deals under this threshold, Palms said. The rapid growth of the PRT market has only scratched the surface. The market opportunity in U.S. corporate defined benefit plans is about $3.2 trillion. (See graph below)

Source: LIMRA Secure Retirement Institute Group Annity Risk Transfer Survey.2022 figure based on Legal & General Retirement Americas estimation.

In the current promising PRT environment, we are seeing repeat transactions from clients, said Kennelly at State Street Global Advisors. Competition between insurers in the PRT market has brought down transaction prices, but companies need to be mindful of who those players are, understand their pricing and credit quality and not [choose] the best price to the detriment of participants, from an insurance carrier-credit concern perspective, he advised.

Every plan has a different path toward pension risk transfer. Everything [must be] in alignment as we move along [the path], said Phillips, adding that Parametric Portfolio Associates uses a customized approach for each plan undertaking a PRT. For instance, we manage higher-quality corporate bonds that an insurance company would prefer in a transaction. We [also] facilitate PRTs [by] matching cash flows leading up to the transfer.

The most important thing plans can do before PRT is to do their homework, Phillips advised. They need to understand which liabilities are being transferred and that the assets have been appropriately invested for settlement, he said. That requires customization.

While the corporate pension plan market is a mature market, there is a lot of money in motion, both in the growth portfolio and the hedging portfolio, as plans move down the glidepath and get closer to full funded status. Some plans are aimed at improving their risk-management practices with LDI, while others are pursuing derisking by offloading their pension obligations via a pension risk transfer.

This is an exciting time to create better LDI solutions that address specific plan sponsor needs, said Allsprings Hunt, and he is putting his efforts into designing new strategies that complement what most LDI portfolios have in place. LDI can be done differently and better.

Allspring is differentiating itself with new portfolio offerings, such as its climate-transition strategies, as well as taking a more diversified approach to fixed income. For instance, smaller issuers make up half the market capitalization, but they amount to 90% of the issuers, said Hunt. We believe they are underrepresented in most portfolios and are a good alpha opportunity. We access these [smaller] opportunities through our small-issuer long-credit strategy, with appropriate credit research coverage.

State Street Global Advisors is seeing more activity in what it terms liability-aware investing, said Kennelly. It is designed for organizations that are not corporate DB plans and are not governed by the same accounting rules yet face similar long-tailed cash flow needs. Examples are Voluntary Employees Beneficiary Association (VEBA) plans and nuclear decommissioning trusts. Their portfolios are managed so they are liability-aware from a cash flow and exposure standpoint, he said.

In terms of corporate DB plans, as pensions have become better funded, the focus on LDI has increased. The precision of LDI solutions has improved, Kennelly added. Corporate plans need to carefully select their LDI partner. Our philosophy around LDI is about more than just the products. It is the asset allocation oversight, manager oversight, trading, portfolio positioning around liabilities, liquidity management and risk management.The core-satellite approach at State Street Global Advisors is important. Building the satellite for excess returns and to provide diversification is also important. [Core-satellite] has to work in tandem, said Kennelly. The breadth of investment capabilities and experience differentiate a successful manager, he said. Being able to navigate through the challenges that were going to face in the next two years is very important. Price is not the only factor: So is value for money.

The rise in interest rates is narrowing the funding gap as liabilities shrink, said Fong at Parametric Portfolio Associates, giving pension plans the opportunity to add to their hedge ratio. For plans that already have hedging programs in place, customization can refine and lock down any residual risks.

Offering a broader toolkit of capabilities distinguishes LDI managers in an otherwise mature market, Fong said. What differentiates a successful LDI manager is one who can offer comprehensive customization. That includes the ability to manage across the glidepath, asset classes and also instrument types.

LDI is everything, said his colleague Phillips. Your investments pay off liabilities in the future. So it is important to think of the big picture. Recognize that plans are better funded despite volatile markets. Understand where you are going to get liquidity. Pension plans and their asset managers need to be able to act in a timely manner to navigate the current volatile markets, with the need for improved control and responsiveness typically requiring customization. Hire an LDI manager with expertise and experience, and who can deliver innovative and customized solutions for managing a pension plan throughout each stage, Phillips said.

In todays competitive PRT market, which has over 20 insurance providers, a real differentiator is an insurers approach to servicing participants, said Palms at LGRA. Weve invested in creating what we think is the market-leading service infrastructure, he said, adding that a key feature is a high level of customization that may be needed by some corporate plans. For example, for an international company that paid employees by wire transfer, LGRA created the capability to continue paying annuitants through wires, ensuring a smooth transition from sponsor to insurer in servicing the plans participants.

The ability to be tailored to what the client values and needs is important, Palms said. Another example is pension plan benefits that include cost of living adjustments, or COLAs, which many insurers avoid because of their complex features. We support pricing those and do those transactions.

With LGRAs strong focus on participant servicing as a critical aspect of a successful PRT, its customer service experience surveys with call-service representatives has awarded the firm 4.95 out of five stars. Our focus on service is something we invest in, that we pride ourselves in and that our clients really value.

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Liability-Driven Investing and Risk Mitigation - Pensions & Investments

In the end, the unavoidable conclusion is that the ESG movement has the potential to do substantial harm to both the financial system and society as a whole, stated the report, written, according to a spokeswoman, by Peterson and a small group of lawyers in the AGs office.

Two university law professors, asked by the Examiner to review the report, said it appeared to be political theater and represented an innovative use of time by a state office whose main responsibility is to represent the state in legal matters.

One of the professors, James Tierney, who teaches investment law at the University of Nebraska College of Law, said theres a robust debate about how society should encourage certain investments, but theres something anti-democratic about saying that only financial return should be considered.

Its very light on the law and its very heavy on, whoa international conspiracy, Tierney said.

Theres nothing in this report to give me any reason to think that ESG is anything different than CRT (critical race theory), a boogie man, he said, or an imaginary threat.

Another NU professor, Anthony Schutz, said the report seemed to be an innovative use of the Attorney Generals Office, though it possibly could be related to its consumer protection role.

Overall, Schutz said it was far from a comprehensive and deep analysis of the issues associated with investor activism.

Peterson, in an email response to questions, said he decided to compile the report because he felt there was inadequate information about the origins of ESG, its long-term objective, (and) who is setting the criteria of ESG.

The best way to inform state policymakers and enforcers was to issue a report, said Peterson, who will leave office in January after declining to seek a third term in office.

He noted that in July, the worlds largest money manager, BlackRock, gave a briefing about ESG to the Nebraska Investment Council, which oversees state pension investments. It was described as an educational presentation at the time.

BlackRock has been the prime target of a Republican campaign to pull investments from a growing number of firms that consider things such as climate change and a companys dedication to diversity in making investment decisions.

States such as West Virginia, Louisiana and Arkansas have pulled millions of dollars of investments from BlackRock, Goldman Sachs and JPMorgan, in part because they are reducing their investments in coal and oil.

Florida, at the direction of Republican Gov. Ron DeSantis, has blocked consideration of ESG in that state. Recently, Florida pledged to pull as much as $2 billion in long-term securities and short-term funds from BlackRock, according to the Financial Times.

BlackRock has defended its work, saying that climate risk is investment risk and that it is prudent to consider the dangers, and opportunities, presented by rising global temperatures and emerging technologies.

But a group of Red State attorneys general, including Peterson, and an organization of GOP state treasurers, headed by Nebraska Treasurer John Murante, have condemned ESG for advancing a woke left and left-wing agenda instead of primarily investor returns.

Peterson, in a press release in August, said it appeared that anyone purchasing a BlackRock fund is forced to support ESG whether they like it or not.

This weeks report from the Attorney Generals Office stated that while individual investors can invest their money as they please, those who decide how to invest other peoples money, as in a state pension fund, cannot pursue a non-financial goal.

The report warned that ESG investing violates a duty by investment and trust officers to seek financial returns above other objectives. Investing via ESG, it stated, also risked an antitrust violation and placed investment power in a small group of elites running global financial firms.

Overall, Petersons report argued that investment firms were not well suited to decide climate and social issues, and contended that should be left to the public or its elected officials.

But interest and support in ESG investing is spreading.

According to Deloitte, by 2024 half of all professionally managed assets globally will have investments in companies that take ESG issues into account, according to a September report in the Examiner.

That same story cited a 2021 survey on responsible investing by Nuveen, an asset manager. It found that 75% of employees strongly agreed or somewhat agreed that employers that have ESG and responsible investing options care about their retirement outcomes.

Tierney, the NU law professor, said the AGs report ignored another duty of investment and trust managers: the prudent investment rule. That duty, according to a Nebraska Supreme Court ruling, doesnt require investing only for the highest return possible.

Tierney said his cynical view is that the report was inspired by interest groups and corporate heads who are seeing investments flowing away from their firms to companies that embrace ESG.

They get mad when they see their stock price go down because some fund manager thinks the investment is dirty, Tierney said.

More here:
Nebraska AG's report warns against 'threat' in environmental, social and governance investing - Nebraska Examiner

Short selling giant Jim Chanos is still pretty bearish on a number of stocks including Coinbase and Tesla, he said on Thursday.

In a Twitter Spaces conversation, Chanos was asked about the FTX fiasco and whether he thinks institutional investors should have done more to scrutinize founder Sam Bankman-Fried.

Chanos said that the due diligence (or lack thereof) was common behavior in Silicon Valley and the crypto industry for the past few years.

Look at the texts that were released in conjunction with people wanting to invest in Elons Twitter deal, he said. You know, Ill send you a couple billion dollars in effect, no due diligence necessary.

This is the ultimate FOMO [fear of missing out] type market and people are investing in personalities not businesses, he said, adding that that is a scary development in the investment space.

Chanos said he remains short on Coinbase COIN, -6.00%, but not because of the FTX blowup and the dive of crypto prices.

This isnt about crypto prices. Thats not why we why we shorted the stock and thats not why we remain short. I mean, crypto prices will obviously fluctuate. Its really the business model that I dont think people appreciate here, he said.

Aside from Coinbase being its prime short in the crypto space, Chanos said that there arent many other options other than shorting cryptocurrencies themselves.

Theres the miners, theres a Coinbase and then youve got like the odd one-offs like MicroStrategy MSTR, +0.34%, which is which is basically you know a giant closed end fund of Bitcoin trading at a huge premium. But thats really kind of it. I mean unless you go and short the currencies themselves, there arent a lot of choices. So let Coinbase is our prime short in that area, he said.

Chanos is still short on Tesla TSLA, +3.23%, because despite how Chief Executive Elon Musk wants the company to innovate, he says Tesla is still a car company at the end of the day, and will increasingly face car company issues.

He said that the luxury car market is becoming a tougher place to maintain margins, something that could present a struggle for Tesla.

The luxury car market globally is about 4 million units a year and the estimate for next year is that theyre going to sell 2 million. So theyre going to be 50% of the luxury car market globally next year if they hit their numbers and the problem will be for them of course, its decelerating sales, he said.

See the rest here:
Short selling giant Jim Chanos is still short on Coinbase, Tesla and the FOMO-investment market - MarketWatch

Dublin, Dec. 09, 2022 (GLOBE NEWSWIRE) -- The "Mindfulness Meditation Application Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Operating System and End User" report has been added to ResearchAndMarkets.com's offering.

The mindfulness meditation application market size is projected to grow from US$ 533.2 million in 2022 to US$ 2,633.4 million by 2028; the mindfulness meditation application market share is estimated to grow at a CAGR of 30.5% from 2022 to 2028.

Integrating technology into meditation makes it more human-centric, increasing the adoption rates and driving the market. There are several meditation techniques currently being developed and already in use. However, the mindfulness meditation application is the most popular technology among those who meditate.

Applications can be downloaded to most smart devices such as phones, tablets, laptops, computers, and even TVs. Therefore, consumers can use meditation apps wherever they go, allowing users to meditate in a busy environment. Buddhify is a meditation and mindfulness application designed for diversity. It depends on the users and their specifications.

For example, a user can tell the app what activity they are currently doing, and the app provides a suitable meditation session for the user based on their current environment. Technologies in the form of binaural beat music and sound charts make deep delta states more accessible.

Perhaps one of the most beneficial properties that technology brings to meditation is its ability to help the user reach a meditative state faster. This is especially important for those new to meditation because it encourages users to experience meditation's benefits effectively and return to it for mental, physical, and spiritual nourishment. Hence, the rising integration of smart technologies is driving the mindfulness meditation application market.

Europe accounted for a significant share of the global mindfulness meditation application market in 2021 and is expected to grow significantly throughout the forecast period. The presence of a large number of companies providing mindfulness meditation applications in Europe is leading to an increase in competition among the leading players.

The competitive scenario includes many players, such as Flowvr, The Meditation Company, 7mind, Pop & Rest, Samten, Asana Rebel, Yocalm, DeepH, Jinglow, and Mind Hero. The growing awareness among people to combat their anxiety, get better sleep, increase their focus, manage their weight, improve their sleeping habits, and much more is augmenting the demand for meditation applications.

In addition, the COVID-19 pandemic pushed people to seek a few moments of peace through meditation. In the wake of maintaining social distancing during the pandemic, most people turned to virtual meditation to relieve themselves from fear, anxiety, and other mental and emotional distress.

The key reasons for adopting the meditation practice among European countries were that it helped reduce stress and anxiety, improve concentration and memory, and improve performance at work and school. The growing demand among the European countries for health and wellness apps has prompted app developers to introduce the latest apps in the competitive market. By the end of 2020, approximately 71,000 health and mobile fitness apps were released. Compared to 2019, the number of newly released health and wellness mobile apps increased by 13% in 2020.

As per the YPulse, 2020 data, the search for yoga and meditation apps increased by 65% between 2019 and 2020, as a large number of people sought the use of applications to manage their stress and anxiety. Thus, an increase in the number of users of meditation apps owing to growing concern about mental fitness accelerated the mindfulness meditation application market growth.

As per the research presented at ESC Acute Cardiovascular Care 2021, an online scientific congress of the European Society of Cardiology, mindfulness meditation improves the quality of life and reduces fear of activity in heart attack patients. Additionally, the launch of new apps from startups is also aiding the mindfulness meditation application market growth.

For instance, in January 2021, Escala Meditando, the meditation app in Spanish, was launched for the children's category to encourage and improve concentration in children. It also helps facilitate and develop creativity, contributes to higher academic performance, and reduces aggression and violence. Thus, upcoming launches of new products are expected to accelerate the market growth over the forecast period.

In 2020, the COVID-19 outbreak across Europe attracted strict and prolonged lockdown periods and social isolation. However, its impact on Western European countries such as Germany, France, and the UK was modest because of their robust healthcare systems. The countries in Europe experienced the worst economic and consumer spending situation owing to the pandemic in 2020.

Another factor that hampered the market growth is the implementation of lockdown in many European countries and the imposition of travel restrictions by their governments to prevent the spread of COVID-19 infection. However, in 2021, with the easing of lockdown measures, the app providers started the business with reframed strategies.

Thus, the demand from individuals for installing the apps and the need for monitoring and looking after their wellness has experienced a significant increase. As a result, the market for mindfulness meditation applications is expected to remain unaffected by the emergence of COVID-19.

The number of internet users increased significantly during the pandemic and is expected to continue to increase in the near future. Thus, the pandemic has positively affected the demand for mindfulness meditation applications, which is further expected to drive the mindfulness meditation application market.

Market Dynamics

Key Market Drivers

Key Market Restraints

Key Market Opportunities

Future Trends

Company Profiles

For more information about this report visit https://www.researchandmarkets.com/r/7hj1j1

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Global Mindfulness Meditation Application Markets, 2022-2028: Increasing Focus on Personalization with Opportunities in the Incorporation of AI &...

Sound design in games is rarely given the same level of attention as graphics, but games these days really do have extraordinarily detailed and interesting soundscapes. Microsoft thinks so, anyway, and is bringing two auditory environments from Halo Infinite and Sea of Thieves to the meditation app Calm.

Its small news and in a way just a promo for the games and Calm, but its also a nice thing to see happening. I vividly remember game themes from my whole life; I wake up every day to the NES Kid Icarus title theme, and the soundtracks to games like Stardew Valley, Fez and more recently Elden Ring and Genshin Impact are in regular rotation.

If playing games is a time when you feel happy, calm and focused, perhaps the sounds of their environments could help you achieve that state at other times. (Somehow, although I raged like hell at every boss in Elden Ring, the themes of Limgrave and Altus put me at ease.)

So although Halo is a game about a futuristic super-soldier blasting aliens to hell and Sea of Thieves has you dodging cannonballs and sea beasts, these popular games have evocative environments that may very well help someone get into a mental zone conducive to meditation or just mindfulness and focus. The two games will be available to paying Calm users soon.

The crossover is just one part of a larger post on mental health over at Xbox Wire, with people talking about how games have helped them through dark times, and providing resources for people who may be going through them right now.

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Halo and Sea of Thieves ambience tracks come to Calm meditation app - TechCrunch