NEWS: President Trump officially signs executive order, opening 401(k) access to crypto and alternative assets. https://t.co/DtpwDxR3Pv ...

Abacus Global Management (ABL) Q2 2025 Earnings Call August 07, 2025 05:00 PM ET Speaker0Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Abacus Global Management Second Quarter of twenty twenty five Earnings Conference Call. All participants will be in a listen only mode. Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.To ask a question, you may press star then one on your ...

BREAKING: 🚨 President Trump has just signed an executive order allowing investors to include "Alternative Assets" in 401(k)s. https://t.co/5IGr5H07j1 ...

🚨 BREAKING: President Trump signs executive order allowing 401(k) investors to access alternative assets, including digital assets. https://t.co/cZ4lvHyP6Y ...

President Trump signed an executive order easing access to private equity, real estate, cryptocurrency and other alternative assets in 401(k)s.@cfb_18 breaks down what this move means for your retirement savings https://t.co/Z08lR2UQkG https://t.co/qutylNj8pR ...

According to Bloomberg, Donald Trump will sign an executive order on Thursday that aims to allow private equity, real estate, cryptocurrencies, and other alternative assets in 401(k) retirement accounts. The order directs the Labor Department to reassess ERISA-related guidance and coordinate with the Treasury and SEC on potential rule changes. https://t.co/3XSNv9etpJ ...

💥BREAKING:TRUMP TO SIGN EXECUTIVE ORDER THURSDAY ALLOWING 401(K) INVESTMENTS IN CRYPTO, AND OTHER ALTERNATIVE ASSETS.THIS IS HUGEEE 🚀 https://t.co/wqj2NGIC02 ...

RT Tree News (@TreeNewsFeed)TRUMP WILL SIGN AN EXECUTIVE ORDER THURSDAY THAT AIMS TO ALLOW PRIVATE EQUITY, REAL ESTATE, CRYPTOCURRENCY & OTHER ALTERNATIVE ASSETS IN 401(K)S- BLOOMBERG NEWS - RTRS ...

Financial Data and Key Metrics Changes - In the second quarter of 2025, the company reported a 15% year-over-year growth in economic earnings per share, reaching $5.39 [4][21] - Adjusted EBITDA for the quarter was $220 million, reflecting a 1% year-over-year increase, with fee-related earnings growing 4% year-over-year [21] - The company generated over $8 billion in net client cash flows, marking the strongest net flow quarter in over a decade [10][20] Business Line Data and Key Metrics Changes - The company added approximately $55 billion in alternative assets under management (AUM), increasing total alternative AUM by 20% in just six months [5][12] - Private markets AUM grew by 50% since 2022, now standing at $150 billion, driven by high teens organic growth and new affiliate partnerships [12][15] - Liquid alternatives generated nearly $12 billion in net inflows during the quarter, with strong demand for tax-aware solutions [13][14] Market Data and Key Metrics Changes - The company experienced $19 billion in client cash inflows into alternatives, offsetting $11 billion in outflows from active equities [10][11] - The wealth channel is seeing an acceleration of alternative flows, particularly in private equity, private credit, and infrastructure [6][12] - The company’s strategic engagement with affiliates is enhancing access to the rapidly expanding wealth marketplace [6][18] Company Strategy and Development Direction - The company is focused on evolving its business mix towards secular growth areas, particularly in alternative asset classes [10][18] - The strategic partnerships with affiliates are aimed at capitalizing on growth opportunities in private markets and liquid alternatives [7][18] - The company anticipates a meaningful increase in economic earnings per share in 2026 due to the growth in alternative AUM and new affiliate partnerships [5][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term impact of their strategy execution, highlighting substantial value creation potential for shareholders [9][24] - The company is well-positioned to continue executing its growth strategy, supported by a strong balance sheet and diversified business profile [20][24] - Management noted that the ongoing demand for alternative strategies is expected to drive further growth across affiliates [6][18] Other Important Information - The company completed the sale of its minority stake in Peppertree, more than doubling its initial investment [8] - The company repurchased approximately $100 million in shares during the second quarter, with a full-year repurchase expectation of around $400 million [24][65] - The company is actively pursuing new investment opportunities, having announced four new partnerships in 2025 [7][8] Q&A Session Summary Question: Contribution from AQR and Pantheon - Management expects both Pantheon and AQR to be double-digit contributors to earnings this year, with AQR focusing on tax-aware solutions benefiting high net worth individuals [28][40] Question: Capacity Constraints for AQR - AQR has a competitive advantage due to its innovation and robust trading systems, allowing it to sustain growth despite potential capacity constraints [43][46] Question: Portfolio Management and Buybacks - The company is focused on long-term partnerships with affiliates rather than actively trading stakes, and buybacks are viewed as a flexible tool for returning capital to shareholders [52][60][63] Question: Private Market Fundraising Consistency - The company has seen substantial growth in private markets, with a diverse range of fundraising sources contributing to a more consistent flow of capital [70][75] Question: European Market Trends - Management has not observed significant reallocations from U.S. to European managers impacting their second-quarter numbers, but they are monitoring the situation closely [80][84]

Core Insights - Bitcoin and gold have both experienced a year-to-date return of 28% as of July 16, 2025, indicating a trend towards diversification in investment portfolios [1][8] - The rise in international stocks, a positive return in the bond market, and gains in alternative assets have contributed to this diversification trend [1] Investment Themes - Investors are increasingly turning to ETFs to gain exposure to alternative assets like gold and bitcoin, as well as niche altcoins and precious metals [2] - Total assets under management (AUM) in gold ETFs surpassed $170 billion in April 2025, while cryptocurrency ETFs reached $123.9 billion by April 30 [3] Market Comparisons - Gold's market cap stands at approximately $22.6 trillion, significantly larger than Bitcoin's market cap of around $2.4 trillion [4] - The SPDR Gold Shares ETF (GLD) is the leading gold ETF with $102 billion in AUM, while the iShares Gold Trust (IAU) has $48 billion [5] ETF Performance - The iShares Bitcoin Trust ETF (IBIT) is projected to exceed $100 billion in AUM soon, having reached $86 billion by mid-July [7] - IBIT has grown at a remarkable pace, hitting $80 billion in just 374 days, significantly faster than previous records [7] Other Asset Performance - Other metals like platinum and palladium have seen substantial gains, with platinum up over 50% and palladium up 40% in 2025 [9] - Ether has also rebounded, moving back into positive territory after a significant decline earlier in the year [10] Emerging Trends - The crypto market is witnessing innovations and new products, with a focus on Solana and leveraged products for cryptocurrencies like XRP [11] - Active ETF AUM is on the rise, complementing the growth of low-cost index funds, indicating a shift in investment strategies [13] Conclusion - The year 2025 has been characterized by volatility, driving strong performances in gold and bitcoin, with central banks actively purchasing gold and a "buy the dip" mentality in the crypto market [14]