atonrâ fintech certificate
ATONRÂ FINTECH CERTIFICATE Main Features
The AtonRâ Fintech Index is a long-only, USD-based, actively managed total return index. The pace of innovation in financial technology (Fintech) has been accelerating lately with notably the emergence of mobile payments.
Asset Class Inception Date Currency Type of Return ISIN Issuer Issue Price Last Price Sharpe Ratio Correlation Beta Benchmark
This is just the beginning of a secular trend as technology and digitalisation are likely to reshape the financial industry with applications ranging from robo-advisers, P2P lending and money remittances to blockchain. Banks and insurers will have no choice but to invest heavily as Fintech is expected to spark major operating efficiencies through increased automation and is also likely to lift the financial industry's revenue outlook through enhanced customer experience and engagement. The investment universe is naturally composed of Internet and mobile financial platforms, payment networks and processors and hardware and software vendors (cybersecurity, biometrics, chips). It can also include more traditional companies whose business model shifts thanks to Fintech innovations.
Equity 7-Jun-17 USD Total Return XS1365787230 NATIXIS 100.0 117.7
MSCI World Net Return
MONTHLY RETURNS (%)
20-12-17
06-12-17
22-11-17
4-Jul-17 08-11-17
98.1
25-10-17
All Time Low
124 122 120 118 116 114 112 110 108 106 104 102 100 98
ANNUAL 17.8%
11-10-17
24-Nov-17
DEC 0.3%
27-09-17
Date
122.4
NOV 0.9%
07-06-17
Price
All Time High
SEP OCT 3.1% 5.8%
13-09-17
HIGHS/LOWS
JUL AUG 6.0% 2.1%
30-08-17
2017
JUN -1.4%
16-08-17
MAY
02-08-17
APR
19-07-17
MAR
05-07-17
FEB
21-06-17
JAN
December 2017 highlights The AtonRâ Fintech certificate gained 0.3% in December, underperforming the MSCI World Net Return by 1.1%. Launch-to-date (June 7, 2017 launch), it outperforms its reference index by 7.6%. Last year, we highlighted as a major positive the bank charter offered by the US administration to fintech companies, arguing that this license will let them offer new financial products and services and is likely to improve their brand strength and enhance customer confidence. While a couple of US fintech players already applied to this banking license including fintech heavyweight Square, it’s worth noting that European players didn’t stay idle as many of them (38 to be exact including Revolut for instance) took the opportunity of a supportive regulatory environment in Lithuania to ask for a banking license in the country that gives them access to the Single Euro Payments Area and lets them handle electronic payments across the euro region. Lithuania offers a specialized banking license with the euro zone’s lowest initial capital requirement (EUR1m) and fastest issuance process (3 months vs. 12 in Germany). In light of this supportive environment for fintech companies, it’s no wonder that venture capital investments in fintech are expected to have grown 19% and reached a new record in 2017 above USD15bn. With all this funding pouring on the fintech space, we stick to our view that a spending binge is ahead of us and that one of the most astute ways to benefit from it is to invest in financial software vendors that address both fintech pure players and start-ups and legacy financial institutions seeking to accelerate their digital shift. 2018 could also welcome a couple of high-profile IPOs and M&A deals. Notably, Dutch payment processor Adyen, which handles payments for large Internet companies such as Uber and Netflix, is reportedly considering an initial public offering at a time when both incumbent processors such as First Data or TSS and large banks (JP Morgan) seek to gain scale and increase exposure to online and mobile transactions. There were three major takeovers in 2017 (Paysafe, Worldpay, Nets) and there’s probably more to come in 2018. There could also be some consolidation across the various fintech segments (payments, lending, wealth management, insurance…) as fintech leaders (Paypal, Square) seek to offer full banking platforms, as tech giants move deeper into the space and start offering new services and as legacy banks play catch-up.
AtonRâ Partners SA 12 rue Pierre Fatio - 1204 Geneva - Switzerland - +41 22 310 15 01 - http://www.atonra.ch
ATONRÂ FINTECH CERTIFICATE Top 3 Performers
Worst 3 Performers
Name
Name
LENDINGTREE INC GMO PAYMENT GATEWAY INC WIRECARD AG
SQUARE INC - A PAYPAL HOLDINGS INC EURONET WORLDWIDE INC
Top 3 Holdings Name SQUARE INC - A LENDINGTREE INC PAYPAL HOLDINGS INC
Geographical Breakdown
Currency exposure
Asia Pacific
5.4% 2.2% 3.1% 9.9%
5.3% 15.3% Europe
79.4%
US
79.4%
Asset Allocation
CHF AUD
Equities
JPY
Cash
EUR USD
99.8%
Important Information All net estimated returns are based on unaudited, internally prepared assessments and have not been independently verified. The net estimated returns are subject to adjustments as a result of changes or delays in AtonRâ's calculations of the profit and loss of the portfolio. Any such adjustments could have a material impact on the estimated net returns of the AtonRâ Basket. Net returns are reported after deduction of AtonRâ's management and/or performance fees. Past performance is not indicative or a guarantee of future results. Investment losses may occur, and investors could lose some or all of their investment. Although AtonRâ Partners SA believes that the information provided in this document is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this report. The information contained in these publications is sent to you by way of information and cannot be divulged to a third party without the prior consent of AtonRâ Partners. It cannot be considered under any circumstances as an offer to sell, or a solicitation of any offer to buy financial instruments. Any indices cited herein are provided only as examples of general market performance and no index is directly comparable to the past or future performance of the Certificate. It should not be assumed that the Certificate will invest in any specific securities that comprise any index, nor should it be understood to mean that there is a correlation between the Certificate’s returns and any index returns. Any material provided to you is intended only for discussion purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any security and should not be relied upon by you in evaluating the merits of investing in any securities.
AtonRâ Partners SA 12 rue Pierre Fatio - 1204 Geneva - Switzerland - +41 22 310 15 01 - http://www.atonra.ch
The AtonRâ Fintech Index is a long-only, USD-based, actively managed total return index. The pace of innovation in financial technology (Fintech) has been accelerating lately with notably the emergence of mobile payments.
Asset Class Inception Date Currency Type of Return ISIN Issuer Issue Price Last Price Sharpe Ratio Correlation Beta Benchmark
This is just the beginning of a secular trend as technology and digitalisation are likely to reshape the financial industry with applications ranging from robo-advisers, P2P lending and money remittances to blockchain. Banks and insurers will have no choice but to invest heavily as Fintech is expected to spark major operating efficiencies through increased automation and is also likely to lift the financial industry's revenue outlook through enhanced customer experience and engagement. The investment universe is naturally composed of Internet and mobile financial platforms, payment networks and processors and hardware and software vendors (cybersecurity, biometrics, chips). It can also include more traditional companies whose business model shifts thanks to Fintech innovations.
Equity 7-Jun-17 USD Total Return XS1365787230 NATIXIS 100.0 117.7
MSCI World Net Return
MONTHLY RETURNS (%)
20-12-17
06-12-17
22-11-17
4-Jul-17 08-11-17
98.1
25-10-17
All Time Low
124 122 120 118 116 114 112 110 108 106 104 102 100 98
ANNUAL 17.8%
11-10-17
24-Nov-17
DEC 0.3%
27-09-17
Date
122.4
NOV 0.9%
07-06-17
Price
All Time High
SEP OCT 3.1% 5.8%
13-09-17
HIGHS/LOWS
JUL AUG 6.0% 2.1%
30-08-17
2017
JUN -1.4%
16-08-17
MAY
02-08-17
APR
19-07-17
MAR
05-07-17
FEB
21-06-17
JAN
December 2017 highlights The AtonRâ Fintech certificate gained 0.3% in December, underperforming the MSCI World Net Return by 1.1%. Launch-to-date (June 7, 2017 launch), it outperforms its reference index by 7.6%. Last year, we highlighted as a major positive the bank charter offered by the US administration to fintech companies, arguing that this license will let them offer new financial products and services and is likely to improve their brand strength and enhance customer confidence. While a couple of US fintech players already applied to this banking license including fintech heavyweight Square, it’s worth noting that European players didn’t stay idle as many of them (38 to be exact including Revolut for instance) took the opportunity of a supportive regulatory environment in Lithuania to ask for a banking license in the country that gives them access to the Single Euro Payments Area and lets them handle electronic payments across the euro region. Lithuania offers a specialized banking license with the euro zone’s lowest initial capital requirement (EUR1m) and fastest issuance process (3 months vs. 12 in Germany). In light of this supportive environment for fintech companies, it’s no wonder that venture capital investments in fintech are expected to have grown 19% and reached a new record in 2017 above USD15bn. With all this funding pouring on the fintech space, we stick to our view that a spending binge is ahead of us and that one of the most astute ways to benefit from it is to invest in financial software vendors that address both fintech pure players and start-ups and legacy financial institutions seeking to accelerate their digital shift. 2018 could also welcome a couple of high-profile IPOs and M&A deals. Notably, Dutch payment processor Adyen, which handles payments for large Internet companies such as Uber and Netflix, is reportedly considering an initial public offering at a time when both incumbent processors such as First Data or TSS and large banks (JP Morgan) seek to gain scale and increase exposure to online and mobile transactions. There were three major takeovers in 2017 (Paysafe, Worldpay, Nets) and there’s probably more to come in 2018. There could also be some consolidation across the various fintech segments (payments, lending, wealth management, insurance…) as fintech leaders (Paypal, Square) seek to offer full banking platforms, as tech giants move deeper into the space and start offering new services and as legacy banks play catch-up.
AtonRâ Partners SA 12 rue Pierre Fatio - 1204 Geneva - Switzerland - +41 22 310 15 01 - http://www.atonra.ch
ATONRÂ FINTECH CERTIFICATE Top 3 Performers
Worst 3 Performers
Name
Name
LENDINGTREE INC GMO PAYMENT GATEWAY INC WIRECARD AG
SQUARE INC - A PAYPAL HOLDINGS INC EURONET WORLDWIDE INC
Top 3 Holdings Name SQUARE INC - A LENDINGTREE INC PAYPAL HOLDINGS INC
Geographical Breakdown
Currency exposure
Asia Pacific
5.4% 2.2% 3.1% 9.9%
5.3% 15.3% Europe
79.4%
US
79.4%
Asset Allocation
CHF AUD
Equities
JPY
Cash
EUR USD
99.8%
Important Information All net estimated returns are based on unaudited, internally prepared assessments and have not been independently verified. The net estimated returns are subject to adjustments as a result of changes or delays in AtonRâ's calculations of the profit and loss of the portfolio. Any such adjustments could have a material impact on the estimated net returns of the AtonRâ Basket. Net returns are reported after deduction of AtonRâ's management and/or performance fees. Past performance is not indicative or a guarantee of future results. Investment losses may occur, and investors could lose some or all of their investment. Although AtonRâ Partners SA believes that the information provided in this document is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this report. The information contained in these publications is sent to you by way of information and cannot be divulged to a third party without the prior consent of AtonRâ Partners. It cannot be considered under any circumstances as an offer to sell, or a solicitation of any offer to buy financial instruments. Any indices cited herein are provided only as examples of general market performance and no index is directly comparable to the past or future performance of the Certificate. It should not be assumed that the Certificate will invest in any specific securities that comprise any index, nor should it be understood to mean that there is a correlation between the Certificate’s returns and any index returns. Any material provided to you is intended only for discussion purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any security and should not be relied upon by you in evaluating the merits of investing in any securities.
AtonRâ Partners SA 12 rue Pierre Fatio - 1204 Geneva - Switzerland - +41 22 310 15 01 - http://www.atonra.ch
