Abacus Global Management (ABX) 29th Annual Global Conference summary

Market environment and investment trends

• Volatility is now the norm, with the VIX consistently higher post-COVID, driving a need for geographic diversification and global investment strategies.

• Major trends include AI, technology, clean energy, and healthcare, with significant growth expected in these sectors due to demographic shifts and technological advancements.

• The largest wealth transfer in history is underway, with $100 trillion moving to the next generation and $30 trillion to women, reshaping portfolio allocations and investment priorities.

• Supply chain shifts and the bifurcation between the U.S. and China are redirecting capital flows to Southeast Asia, India, and Japan, emphasizing the importance of reducing home bias.

• Investors are increasingly seeking both portfolio resiliency (inflation protection, diversification, income yield) and high growth (AI, healthcare), creating a barbell allocation approach.

Retirement, longevity, and financial planning

• Longevity and healthspan are central to financial planning, with new generations expected to live significantly longer, requiring new approaches to decumulation and income strategies.

• Many retirees struggle to spend accumulated wealth, highlighting the need for lifetime income solutions and behavioral shifts in retirement planning.

• Longevity literacy among both individuals and advisors is low, often leading to underestimation of lifespan and suboptimal financial plans.

• The shift from defined benefit to defined contribution plans is a global phenomenon, with a focus on helping individuals decumulate assets effectively.

• Health, longevity, and personalized advice are becoming pillars of private wealth management, with a growing emphasis on holistic services beyond investment returns.

Private markets, family offices, and product innovation

• Private markets are seeing increased demand, especially in infrastructure, real estate, and direct investments, with family offices acting as mini-institutions and key growth drivers.

• Companies are staying private longer, offering significant compounding opportunities for investors who can access these stages.

• Product proliferation in alternatives and evergreen funds is accelerating, but maintaining quality and institutional rigor is critical to avoid commoditization and ensure strong returns.

• Family offices are increasingly complementing or displacing private equity, seeking direct and impact-driven investments aligned with their values.

• Pension reforms in Europe and Asia are opening new markets for individual investors, with regulatory changes like ELTIF creating a more unified investment landscape.