Generation Next – New Investment Opportunities Emerge through Millennials

BofA Merrill Lynch Millennials Portfolio, Series 1 (Ticketing Symbol: MLML15)

Deposited on August 17, 2015
Available exclusively through ML Advisors
Final day to ticket: November 13, 2015

‘The Rise of the Millennials - Generation Next’

Millennials (those between 18 – 34 years of age) are emerging as the new dominant force of wealth accumulation and consumer spending globally. They are set to potentially benefit from the ‘Great Transfer’ of assets (estimated to be in excess of $40 trillion) that will shift from U.S. Baby Boomers to Millennials. Based on research, Merrill Lynch believes the unique traits of Millennials, which generally include technological dependence and shifting priorities regarding life’s milestones, heavily influence their interaction with the global marketplace, particularly in areas such as accommodation, autos, drinking and dining, finance, media, technology, and travel. For companies that can successfully identify Millennials’ preferences and values, this reshaped relationship with the consumer may offer new investment opportunities.


Access To Millennials—Entry Points

The Anticipated BofA Merrill Lynch Millennials Portfolio seeks to offer broad exposure to Millennials-related opportunities across six themes:

  1. Technology: Products and services focusing on Millennials’ rapid adoption of technology that permeates their daily lives in areas of e-commerce, entertainment, mobile gaming, and social media.
  2. Consumer Goods: Companies in the retail space specializing in affordable luxury, electronics, fast-fashion, and travel that are achieving brand loyalty among Millennials through innovative marketing techniques.
  3. Drinking, Dining and Health & Wellness: Dining and food retailers catering to Millennial preferences, emphasizing a combination of convenience, quality, and value. Athletic apparel and equipment providers that help Millennials maintain their commitment to health and wellness.
  4. Households & Housing: Millennials have moved ahead of the older Generation X as the largest segment of the U.S. housing market. This should have a positive impact on companies offering do-it-yourself (‘DIY’)/ home improvement, homebuilding, home furnishings and online retail services.
  5. Financials: Millennials have developed a high comfort level conducting personal finance on a technological basis. Companies focused on mobile payments and electronic banking will be the prime beneficiaries, as Millennials demand that banking becomes more digital.
  6. Education: Millennials are the most educated generation in history. A number of companies, from academic publishing to online learning institutions, are well placed to benefit from Millennials’ commitment to higher education.


Key Considerations

  • Global Millennial Exposure: There are an estimated 2 billion Millennials worldwide, with approximately 86% living in emerging markets.1 The Millennials Portfolio seeks to offer global exposure to companies expected to benefit from the growing influence of Millennials.
  • Great Wealth Transfer: In the U.S., Millennials currently account for $1.3 trillion in annual spending and their wealth is projected to grow to over $40 trillion by 2025.1
  • Defined Portfolio: The securities within a UIT portfolio are professionally selected. A defined portfolio offers efficient exposure to this timely investment opportunity for an investor's overall portfolio.

1 Source: ML Equity Research Thematic Investing Report–May 22, 2015

There is no assurance that the selected securities will profit from the growing Millennial global consumption and spending or that the Trust will achieve its investment objective. 
Past performance does not guarantee future results. There is no guarantee that these trends and projections will continue or come to fruition and they are subject to change.


To learn more about this UIT and other investment products, please contact your Guggenheim Investments Sales Team at 800.345.7999.


Conference Call Featuring Sarbjit Nahal, Head of Thematic Investing at ML

Join us for a national advisor-only conference call as Sarbjit Nahal highlights the Generation Next – Millennials Primer report.
Date:  Wednesday, August 19, 2015
Time: 2:00 pm EST
Dial-In:  800-732-8470 Toll Free

Valuable Resources


DISCLAIMERS: The Trust is not sponsored or endorsed by BofA Merrill Lynch and BofA Merrill Lynch makes no representation or warranty, express or implied, to the unit holders of the Trust or any member of the public regarding the advisability of investing in units of the Trust. BofA Merrill Lynch’s only relationship to the Sponsor or the Trust is the licensing of certain trademarks and the development of the BofA Merrill Lynch Millennials Portfolio, which is determined and composed by BofA Merrill Lynch without regard to the Trust or its unit holders. BofA Merrill Lynch has no obligation or liability in connection with the investment decisions made by the sponsor or Trust or in connection with administration of the Trust.

RISK CONSIDERATIONS: As with all investments, you may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. The Trust also might not perform as well as you expect. This can happen for reasons such as these: • Securities prices can be volatile. • The Trust is concentrated in the consumer products sector, and as a result, the factors that impact the consumer products sector will likely have a greater effect on this Trust than on a more broadly diversified trust. Risks associated with the consumer products sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. • The Trust invests significantly in the information technology sector. As a result, the factors that impact the information technology sector will likely have a greater effect on this trust than on a more broadly diversified trust. Companies involved in this sector must contend with rapid changes in technology, intense competition, government regulation and the rapid obsolescence of products and services. Furthermore, sector predictions may not materialize and the companies selected for the trust may not represent the entire sector and may not participate in the overall sector growth. • The Trust invests in ADRs, CDIs, and U.S.-listed foreign securities and foreign securities listed on foreign exchanges which present additional risk due to such factors as adverse economic, currency, political, social or regulatory developments in a country. • The Trust invests in and certain ETFs held by the Trust may invest in securities whose value may be dependent on currency exchange rates. The U.S. dollar value of these securities may vary with fluctuations in foreign exchange rates. Most foreign currencies have fluctuated widely in value against the U.S. dollar for various economic and political reasons. • Certain closed-end funds held by the Trust invest in securities issued by companies headquartered or incorporated in countries considered to be emerging markets which are substantially smaller and less liquid and may be exposed to greater volatility and market risks than the U.S. and developed foreign markets. • The Trust invests in securities issued by small- and mid-capitalization companies which customarily involve more investment risk than securities of large-capitalization companies because they may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments • Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee that share prices of the securities in the trust will not decline and that the issuers of the securities will declare dividends in the future and, if declared, whether they will remain at current levels or increase over time. • Inflation may lead to a decrease in the value of assets or income from investments. Please see the Trust prospectus for more complete risk information. 

This information is as of 8.5.2015 and is subject to change. Past performance is no guarantee of future returns. UITs are sold by prospectus only. Information contained herein and in the preliminary prospectus is subject to completion or amendment. A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold nor may offers be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or a solicitation of any offer to buy; nor shall there be any sale of these securities in any state where the offer, solicitation, or sale is not permitted.

Unit Investment Trusts are fixed, not actively managed and should be considered as part of a long-term strategy. Investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. UITs are subject to annual fund operating expenses in addition to the sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.