High-earning millennials are currently struggling to keep pace with their financial progress.
In the ever-evolving world of finance, a new generation is making its mark – the Millennials. With over 2.4 billion people worldwide, this demographic is not just a significant consumer force, but also a crucial player in the investment arena.
The Millennial investment theme encompasses a diverse range of sectors, including E-commerce, Social Media, Experiences, and Health & Wellness. However, the portfolio doesn't stop there. It also includes regional and specialized online marketplaces, infrastructure companies like warehousing and delivery services, and firms working on renewable energy or more environmentally friendly packaging in the Utilities and Materials sectors.
The portfolio is carefully curated, with approximately 40 to 50 titles selected based on their promising long-term growth prospects and reasonable valuations. Notably, around 10% of the portfolio is currently invested in the sustainable living investment theme, a share that is expected to grow in the coming years.
The live experiences sector, including travel, concerts, and similar events, is another theme in the Millennial investment portfolio. Ticket sellers with strong regional market positions are particularly interesting in this sector.
Millennials are not only driving consumption growth but are also leading the way in the live experiences sector, with a significant pent-up demand post-pandemic. In fact, they were the first generation to shop online, and e-commerce was the most important theme last year, contributing the most alpha to the portfolio.
The investment universe for this theme comprises over 400 individual companies. Interestingly, companies that tailor their products and marketing to Millennials outperform their competitors.
The Millennial-focused portfolio also includes innovative providers that help smaller companies sell their goods and services online. Furthermore, it extends to sectors like technology hardware, financial services, or clean energy, with companies like those in Goldman Sachs' Global Millennials equity portfolio that do not belong to the themes of e-commerce, social media, experiences, or health and wellness.
Lastly, it's worth noting that the global income of Millennials is as large as that of all other demographic groups combined. As they continue to enter and progress in the workforce, their influence and impact on the global economy and investment landscape are set to grow even further.
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