Millennials (also known as Generation Y) are the largest demographic wave in history and the global economy’s main source of wealth and spending. Find out more about the GS Global Millennials Equity Portfolio and how it invests in corporate beneficiaries of the ‘Millennial Effect’.
Laura Destribats, Co-Portfolio Manager, GS Global Millennials Equity Portfolio
We believe Millennials are reshaping markets and have the potential to impact businesses across sectors and geographies. The GS Global Millennials Equity Portfolio seeks to connect clients to this evolving consumer story.
Our research has shown that Millennials are driving a series of trends that will shape tomorrow’s investment opportunities. The following case studies highlight a number of businesses that we believe are benefitting from this secular growth theme.
Historical context shows how exceptional technological innovation and, even more so, the adoption rate from the millennial generation is. The disruptive power is remarkable.
The global rate of adoption of technological change applies real disruptive pressure across all industries. This pace of change in the digital era is why it’s believed we stand on the brink of the “Fourth Industrial Revolution”.
The convergence of technology and different lifestyle priorities has transformed the business landscape. Millennial lifestyle preferences borne either from the financial crisis (particularly in developed markets), or pronounced generational differences (especially in developing markets) have given rise to a ‘sharing economy’ soon to match the traditional economy in global financial importance.
Technology has facilitated a new ‘asset-light’ business model where asset ownership is no longer the imperative; cost-effectiveness, experiences, service and sustainability become the modus operandi. Millennials are the drivers of these platforms and everyone is now a passenger.
86% of millennials live in Emerging Markets, totalling around 2bn people. China and India account for more than 400million each.
Today the per capita income of the average EM Millennial is low, but this is forecasted to grow. With better education and increasing economic development, these millennials can aspire to be wealthier than their parents, more so than millennials in many developed countries.
By 2035, Chinese millennials may represent a larger consumer force than US millennials. We believe this will present investors with diversified and exciting opportunities.