Fideuram Asset Management Ireland (a company of the Intesa Sanpaolo group) launches Fonditalia Millennials Equity, the first global equity umbrella fund under Luxembourg law tailored to the millennial generation, i.e. children born between 1980 and 1999, who today are the most present generation in the world with 2 billion people. The sub-fund is aimed both at the Millennial himself, who wants to invest directly in what he uses, and at the investor oriented towards capturing new market trends: the shares offered will in fact be mostly issued by companies better positioned to reap the benefits in the economy – and in society in general – of the growing role of the so-called Generation Y worldwide and of everything they hold dear, namely the environment, social sustainability and governance.
Millennials are in the period of their full working maturity, and their wealth will continue to grow: in the US alone they will inherit 40 trillion dollars of wealth. Also in the US, they have outnumbered the baby boomers: in 2025, a not so distant time horizon, they will be the demographic group that will create the most income, when they will represent 75% of the domestic workforce. Even in emerging countries the trend is the same: of the two billion Millennials in the world, 86% live in emerging countries. And contrary to what is believed, although it was a generation affected by the great crisis, the Millennial generation is no less inclined to invest for this reason: indeed according to a recent research by IWBank, the awareness of how important it is to make savings plans in the long term it is widespread (80%). But only 3 out of 10 survey participants find the implementation of the project easy.
That's why Fideuram Asset Management Ireland is launching this new umbrella fund, dedicated not only to Millennials but to all those who want to benefit from the Millennial economy: because Generation Y is also trendy. Its values are in fact very different from those of previous generations, and this will increasingly influence the economy and investments. Sharing, sustainability, technology, online, are new and central terms, but there is also the desire to create a different and better world. According to Forbes and Elite Daily's 2015 Millennial Consumer Study, 75% think it is correct and really important for companies to help the community instead of just making a profit; 43% rate authenticity and reliability as more important than content; only 1% of the millennials surveyed confirm that a convincing advertisement would make them more confident in a brand; 57% say that the inheritance they will receive will not change their spending habits.
Fideuram Asset Management Ireland has therefore designed, developed and built a portfolio, currently consisting of 75 titles, and invests in companies whose services and products are aimed at identifying the spending preferences and lifestyle of Millennials. These are companies, often even famous ones, which are therefore well positioned to capture the benefits deriving from the growing availability of income of this generation. An important element from an investment point of view is that the Millennial concept is a heterogeneous and transversal theme linked to technology, consumption but not only: it therefore allows for high diversification.
The sub-fund is characterized by a high risk profile with the aim of creating value in the medium-long term, deviating significantly from the reference benchmark, which is that of the MSCI World Growth (expressed in euros), which better reflects the Millennials theme. As mentioned, Fondotalia Millennial Equity incorporates environmental, social and governance (ESG) analysis into stock selection and portfolio construction and favors business models that are more sensitive to these aspects. Which are much dearer to the younger generation than the previous ones.
