KKR Conference Call Summary - December 09, 2025 Company Overview - KKR (NYSE: KKR) is a leading global alternative asset manager with over $720 billion in assets under management [1][1] - The company has raised over $100 billion in capital in 2025, indicating strong investment performance and activity [1][1] Economic Outlook - The economic landscape is characterized by a bifurcation, with different sectors experiencing varied outcomes [3][4] - The U.S. has been in a manufacturing recession for the past 2-3 years, while larger companies have seen margin expansion from 14% to 19% over five years [4][4] - The next few years will reveal the impact of past investment decisions, leading to a clearer distinction between successful and struggling businesses [6][6] Fundraising and Investment Themes - KKR is on track to meet its target of raising over $300 billion from 2024 to 2026, having raised approximately $200 billion so far [9][9] - Significant demand is noted across all asset classes, particularly in credit, which accounted for $55 billion of the $101 billion raised in 2025 [12][12] - Real estate equity remains challenging, but there is growing interest in real estate credit [14][14] Realization Activity - KKR has seen a ramp-up in realization activity, with a projected $1 billion in monetization income over the next quarters [19][19] - The firm has approximately $17 billion in unrealized carry, up 10% year-over-year, indicating strong underlying portfolio performance [21][21] Private Credit Growth - KKR expects continued robust growth in credit, managing about $280 billion in credit assets, with $130 billion in private credit [24][24] - Asset-Based Finance (ABF) is highlighted as a significant growth area, with $84 billion in AUM, up 30% over the last year [29][29] Real Assets and Infrastructure - KKR's infrastructure business has grown to $95 billion in AUM, with management fees increasing over 20% annually [33][33] - The firm anticipates a cyclical recovery in real estate, with $85 billion in AUM, half of which is in credit [36][36] Wealth Management Expansion - KKR's K-Series has grown to $32 billion in assets, with plans for further expansion in distribution networks and product offerings [39][39] - The partnership with Capital Group aims to reach a broader audience, targeting households below the accredited investor level [44][44] Strategic Holdings and Dividends - KKR's Strategic Holdings segment is expected to increase dividends from $120 million to $350 million by 2026, with steady revenue and EBITDA growth [54][54] - The focus is on companies that provide attractive long-term cash flows and are recession-resistant [56][56] M&A Strategy - KKR has engaged in strategic acquisitions totaling $10-$11 billion, focusing on businesses where it can be a top-three player globally [61][61] - The firm emphasizes cultural fit and permanency of capital in its acquisition strategy [62][62] Conclusion - KKR is positioned for continued growth across various asset classes, with a strong focus on private credit, infrastructure, and wealth management, while navigating a complex economic landscape [1][1][3][4][9][12][24][33][39][54][61]

12月9日，全球最大的捐赠基金在第三季度继续加大对另类资产的投资，尤其是在比特币和黄金上进一 步提升了持仓比例。随着传统股票和债券市场面临波动压力，HMC的策略显示出大型机构正在积极寻 求分散风险和提升收益的新途径。FXGT认为，这一趋势表明专业投资者正将目光转向高波动性但潜在 回报较高的数字资产和贵金属。 12月9日，全球最大的捐赠基金在第三季度继续加大对另类资产的投资，尤其是在比特币和黄金上进一 步提升了持仓比例。随着传统股票和债券市场面临波动压力，HMC的策略显示出大型机构正在积极寻 求分散风险和提升收益的新途径。FXGT认为，这一趋势表明专业投资者正将目光转向高波动性但潜在 回报较高的数字资产和贵金属。 根据上月公布的第三季度13F文件，哈佛管理公司HMC将其对iShares比特币信托ETF的持仓增加至 6813800股，价值约4.43亿美元。同时，其在SPDR黄金信托GLD的持仓提升至661391股，市值约2.35亿 美元。FXGT认为，这反映了机构投资者对比特币和黄金的双重偏好，不仅看重潜在收益，也将其作为 资产组合的防护工具。在当前全球宏观经济不确定性加剧的环境下，比特币的高波动性与黄金的避险属 ...

Core Insights - Ares Management Corporation will join the S&P 500 index on December 11, 2023, alongside Carvana, CRH, and Comfort Systems USA on December 22, 2023 [1] - Ares' stock price surged to $164.26 on December 8, 2023, and rose over 7% in after-hours trading to $175.83 [1] - Ares is the largest company by market capitalization ($54 billion) not yet in the S&P 500, having outperformed Kellanova in the selection process [1] Company Overview - Ares Management Corporation, founded in 1997, is a leading alternative asset management firm focused on providing investment solutions beyond traditional stocks and bonds for institutional and high-net-worth investors [1] - The company manages assets across several sectors, including private credit, private equity, real estate, and secondary market investments, with approximately 80% of its assets coming from institutional investors and 20% from high-net-worth individuals [1] Growth and Market Position - Ares has experienced rapid growth in assets under management, projected to exceed $525 billion by the end of 2024 and reach $595.7 billion by September 2025 [2] - The acquisition of GCP International in March 2025 has strengthened Ares' logistics and digital infrastructure asset portfolio, enhancing its position as a leading global logistics asset owner and operator [2] - Analysts from firms like TDCowen and CFRA have given "buy" ratings, indicating confidence in Ares' growth potential in a large market, while BMO Capital has noted challenges in its core direct lending business due to increased competition and narrowing spreads [2]

Core Viewpoint - The five major listed insurance companies in A-shares reported better-than-expected performance for the first three quarters of 2025, with a total net profit of 426.04 billion yuan, a year-on-year increase of 33.5%, surpassing the total net profit for the entire previous year [1][2] Financial Performance - China Life reported a net profit of 167.80 billion yuan, up 60.5% year-on-year, while Ping An achieved a net profit of 132.86 billion yuan, an increase of 11.5% [2] - China Pacific and China Property & Casualty reported net profits of 45.70 billion yuan and 46.82 billion yuan, with year-on-year growth of 19.3% and 28.9% respectively [2] - New China Life's net profit reached 32.86 billion yuan, with a growth rate of 58.9% [2] - In Q3 2025, the total net profit of the five listed insurance companies was 247.85 billion yuan, a significant year-on-year increase of 68.3% [3] Investment Performance - As of the end of Q3 2025, the total investment assets of the five listed insurance companies exceeded 20 trillion yuan, showing steady growth compared to the beginning of the year [1] - China Life's total investment income for the first three quarters was 368.55 billion yuan, an increase of 107.13 billion yuan year-on-year, with an investment return rate of 6.42% [3] - New China Life's investment assets amounted to 1.77 trillion yuan, with an annualized total investment return rate of 8.6% [3] - China Property & Casualty reported total investment income of 86.25 billion yuan, a year-on-year increase of 35.3% [3] Asset Allocation Strategies - Insurance companies have optimized asset allocation in response to market conditions, increasing equity investments and focusing on undervalued, high-dividend, and growth-oriented targets [4] - China Ping An emphasized proactive allocation of interest rate bonds and increasing equity investments to ensure stable long-term investment returns [4] - China Life has significantly increased its equity investment efforts, taking advantage of market opportunities [4] Premium Income and Business Performance - The five major listed insurance companies achieved strong performance in premium income, with new business value growth exceeding 30% year-on-year [6] - China Life, Ping An, China Pacific, New China Life, and China Property & Casualty reported new business value growth rates of 41.8%, 46.2%, 31.2%, 50.8%, and 76.6% respectively [6] - The shift towards dividend-type products has been noted, with companies focusing on developing floating income-type businesses [6][7] Underwriting Profitability - China Property & Casualty achieved an underwriting profit of 14.87 billion yuan, a year-on-year increase of 130.7%, with a combined cost ratio of 96.1% [7] - Ping An's property insurance division reported a combined cost ratio of 97%, showing a year-on-year improvement of 0.8 percentage points [7] - China Pacific's property insurance division had a combined cost ratio of 97.6%, with a year-on-year optimization of 1 percentage point [7]

Core Viewpoint - The article discusses the significant policy shift initiated by President Trump's executive order on August 7, which aims to broaden the investment options for retirement plan participants, allowing them to invest in alternative assets beyond traditional stocks and bonds [3][4]. Group 1: Policy Changes - The executive order represents the most substantial expansion in the U.S. retirement investment landscape in decades, encouraging retirement plans to allocate funds to alternative assets such as private equity, private credit, infrastructure, real estate, and digital assets [3][4]. - The order does not amend existing pension or securities laws but mandates the Department of Labor (DOL) and the Securities and Exchange Commission (SEC) to develop new regulations in consultation with the IRS and the Treasury Secretary [4]. Group 2: Implementation Timeline - Proposed rules are expected to be released by February 3, 2026, which is 180 days post-executive order, with final rules to be established by the end of 2026 [4]. - The new regulations will likely impact fiduciary duties and compliance obligations under ERISA and may affect disclosure and conduct standards under federal securities laws [4]. Group 3: CUSIP System Expansion - CUSIP Global Services announced an expansion of its identification system to include private market instruments, aligning with the direction of the executive order [5]. - The introduction of standardized identification codes for private assets will enhance transparency and compliance with SEC reporting requirements, facilitating better tracking and evaluation of asset holdings [5]. Group 4: Stakeholder Responsibilities - Plan sponsors, asset managers, and private credit providers are encouraged to participate in the implementation process by providing feedback and guidance on integrating private assets into defined contribution pension plans [5].

Core Insights - The Government Pension Investment Fund (GPIF) of Japan is making its first independent investment in domestic alternative asset funds, allocating a total of 50 billion yen (approximately 340 million USD) towards real estate and infrastructure, specifically targeting data centers [1][4] Group 1: Investment Strategy - GPIF is investing 40 billion yen in an infrastructure fund and 10 billion yen in a real estate fund, marking a shift from relying on asset management companies for fund selection [1][4] - As of June 30, GPIF's allocation to alternative investments was only 1.6% of its total assets, significantly below the 5% cap [1][4] Group 2: Market Context - Global pension funds are increasingly seeking additional returns from alternative assets like private equity and real estate, which are less affected by stock and bond market volatility [1] - Compared to international peers, GPIF's allocation to alternative assets remains low; for instance, the National Pension Service of Korea has an allocation of about 16% and CPP Investments has around 56% in similar assets [4] Group 3: Operational Changes - GPIF's new strategy enhances its oversight capabilities over investments, as it no longer relies on asset management firms [4] - The specific investments include a 10-year commitment to a DigitalBridge Group Inc. infrastructure fund focused on data centers and a Morgan Stanley real estate fund [4][5]

Market Overview - US stock indices showed mixed performance, with the Dow Jones down 0.51% at 43,968.64 points, S&P 500 down 0.08% at 6,340 points, and Nasdaq up 0.35% at 21,242.7 points [1] Federal Reserve and Economic Outlook - Trump nominated Stephen Milan to fill the vacant Federal Reserve Board position, with a term ending on January 31, 2026 [3] - The number of Americans filing for unemployment benefits has surged to the highest level since November 2021, indicating a weakening labor market [3] - Goldman Sachs reported a 30% chance of a US economic recession, although the global market remains vibrant and US stocks are near historical highs [3] Technology Sector Developments - OpenAI launched a more powerful GPT-5 model, enhancing its AI capabilities [4] - Major tech stocks mostly rose, with Apple up over 3%, Nvidia up 0.75%, and Tesla up 0.74% [5] Semiconductor Industry - Samsung Electronics announced plans to produce Apple's next-generation chips at its Austin, Texas facility, marking the introduction of innovative chip manufacturing technology in the US [7] Oil Market Dynamics - Crude oil prices hit their lowest closing level in over two months, with WTI crude futures closing below $64 per barrel, marking the longest consecutive decline since December 2023 [9] Pension Investment Changes - Trump signed an executive order allowing alternative assets like private equity, real estate, and cryptocurrencies to be included in 401(k) retirement savings plans, signaling a significant shift in US pension investment strategies [11]

Core Insights - The executive order signed by President Trump allows 401k accounts to invest in alternative assets such as private equity, real estate, and cryptocurrencies [1] - This move opens up approximately $12.5 trillion in retirement account funds to the alternative asset industry [1] - The order directs the SEC to revise regulations to facilitate alternative asset investments for retirement plans, aiming to provide American workers with more investment options [1] Group 1 - The executive order aims to enhance investment choices for American workers [1] - Alternative assets are believed to offer competitive returns and diversification benefits [1] - The initiative signals a significant shift in retirement investment strategies, potentially impacting the financial landscape [1]

Core Viewpoint - The article discusses a significant policy shift in the U.S. pension investment landscape, allowing alternative assets such as private equity, real estate, and cryptocurrencies to be included in 401(k) retirement savings plans, as announced by President Trump [1][2]. Group 1: Policy Changes - President Trump will sign an executive order to permit alternative assets in 401(k) plans, marking a major policy shift in U.S. pension investments [1][2]. - The U.S. Department of Labor will reassess guidelines regarding alternative asset investments in 401(k) plans and clarify the government's fiduciary responsibilities [2][3]. - This reform aligns with Trump's support for the cryptocurrency industry and follows recent congressional actions favoring cryptocurrencies [2]. Group 2: Market Impact - Following the announcement, Bitcoin prices surged, and private equity stocks like Apollo Group saw slight pre-market gains [2]. - The inclusion of private market products in 401(k) plans is expected to provide savers with more investment options and potentially higher returns, despite the associated risks and costs [3]. Group 3: Industry Developments - Major asset management firms, such as BlackRock, plan to introduce funds that allocate a portion of assets to private markets within 401(k) plans by 2026 [4]. - Empower, the second-largest retirement plan service provider in the U.S., is set to collaborate with asset management companies, including Apollo, to introduce private asset allocations in select accounts [4]. Group 4: Current Landscape - As of Q1 2025, Americans are projected to hold approximately $8.7 trillion in 401(k) accounts, with asset managers beginning to launch alternative asset products specifically for retirement accounts [3].

Group 1 - The U.S. President Donald Trump is set to sign an executive order allowing private equity, cryptocurrencies, and other alternative assets to be included in 401(k) retirement plans [1] - The order will instruct the U.S. Department of Labor to reassess guidelines regarding alternative asset investments in retirement plans [1] - The Labor Secretary Lori Chavez-DeRemer will coordinate with the SEC, Treasury, and other federal regulators to determine if rule modifications are necessary [1] Group 2 - The executive order aims to alleviate concerns among plan managers about offering illiquid and complex financial products to retirement plan participants [1] - Currently, most fixed contribution plans primarily consist of stocks and bonds [1] - Asset management firms view the new regulations for 401(k) plans as a growth opportunity, especially since many institutional investors have reached their private equity investment limits [1] Group 3 - Companies that may benefit from the new 401(k) regulations include Blackstone (BX.US), KKR (KKR.US), Apollo Global Management (APO.US), and BlackRock (BLK.US) [1]