atonrâ mobile payments certificate AWS
ATONRÂ MOBILE PAYMENTS CERTIFICATE The AtonRâ Mobile Payments is a long-only, monthly rebalanced, EUR-based activelymanaged certificate. It aims to benefit from the expected rise of contactless payments around the world as consumers move to their smartphones and tablets for everyday purchases at the expense of cash.
Main Features Asset Class Inception Date Currency Type of Return Ticker (EUR Inst. Class) ISIN (inst. Class EUR) ISIN (Retail Class EUR) ISIN (Retail $USD Class) Issuer Issue Price Last Price Sharpe Ratio Correlation Beta Benchmark
While the mobile payment infrastructure is now in place (NFC-enabled phones and POS terminals, various payment platforms such Apple Pay), we are just entering the second phase of growth for the theme, which is mass adoption of payment solutions by consumers. Indeed, the increasing marketing around payment platforms and the deployment of value-added services (such as rewards, loyalty and couponing) just started to give a boost to consumer engagement. Longer term, powerful catalysts (in-car payments, virtual reality shopping, government incentives…) should make mobile payments ubiquitous.
Equity 22-Apr-14 Euro Total Return IND1AMPE CH0239656462 CH0239656603 CH0239657494 Société Générale 100.0 190.2 1.45 0.83 1.08 MSCI World Net Return (EUR)
MONTHLY RETURNS (%) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV 2017 4.3% 7.1% 2.9% 1.6% 4.1% -1.4% 2.0% 2.4% 2.8% 8.8% -1.2% 2016 -5.6% -1.5% 0.7% 0.7% 7.5% -3.9% 2.7% -0.5% 1.7% -0.3% -0.3% 2015 6.1% 4.9% 4.8% 1.0% 6.5% -8.9% 2.9% -4.1% -2.9% 9.4% 8.5% 2014 0.2% 5.6% 2.1% -6.1% 4.4% 0.0% -1.1% 8.3%
DEC -1.5% -0.6% -3.7% -1.8%
210
ANNUAL 36.5% 0.0% 25.0% 11.2%
190 170 150 130
Jul-17
Oct-17
Jan-17
Apr-17
Jul-16
Oct-16
Jan-16
Apr-16
90
16-Oct-14
Jul-15
23-Nov-17
94.6
Oct-15
203.8
All Time Low
Jan-15
All Time High
Apr-15
110
Jul-14
Date
Oct-14
Price
Apr-14
HIGHS/LOWS
December 2017 highlights The AtonRâ Mobile Payments certificate (EUR) fell 1.5% in December, underperforming the MSCI World Net Return by 2.1%. In 2017, it outperformed by 29% and, launch-to-date (April 22, 2014 launch), it outperforms by 35.8%. Even if it’s now a well-known fact that China is a dominant force in mobile payments, usage figures in the country are stunning to say the least: 94% of connected consumers in China use mobile payments according to TNS. While they are lower in India, usage figures have been rising fast and are already impressive as 35% of connected consumers use mobile payments and 23% of them at least weekly. Clearly, emerging markets are showing the way to developed countries and point to significant upside potential for US and European companies exposed to the theme once mobile payments become mainstream. Even if adoption of the technology has been slow in the developed world (only 25% of eligible users for Apple Pay), there were finally some signs of traction in 2017 that bode well for 2018. While Apple Pay active users more than doubled over the past year, reaching 86 million according to Juniper Research, annual transactions grew 330%. And Samsung Pay keeps gaining ground as its loyalty program Samsung Rewards sees 25% growth every month and has contributed to 49% of Samsung Pay’s growth since its launch. Importantly, Samsung Rewards is a source of increased user engagement as Samsung’s wallet records 1.3 monthly transactions on average, nearly double Apple’s number. Aside from rewards and loyalty programs, peer-to-peer payment features are the other way to get smartphone users into mobile payments and to increase engagement. In that respect, the recent roll out of Apple Pay Cash, in which money can be sent to friends and family in a message or using Siri and then spent at Apple Pay merchants (both in-app and in-store), could be a game changer and ignite mobile payments adoption. Looking a bit further, the in-car payments catalyst we have long been highlighting and which lets drivers pay for gas, toll fees or public parking without having to pull their credit card or smart phone from their pocket is starting to take shape. General Motors announced the launch of a Marketplace platform on the dashboard of its 2017 and 2018 model-year vehicles that lets drivers place take-away orders or make reservations with the likes of Starbucks, Dunkin’ Donuts and Priceline. And other car makers will probably follow suit soon, suggesting that in-car payments could become a real business by 2020.
AtonRâ Partners SA 12 rue Pierre Fatio - 1204 Geneva - Switzerland - +41 22 310 15 01 - http://www.atonra.ch
ATONRÂ MOBILE PAYMENTS CERTIFICATE
Top 3 Performers
Worst 3 Performers
Name
Name
WIRECARD AG GMO PAYMENT GATEWAY INC TOTAL SYSTEM SERVICES INC
SQUARE INC - A PAYPAL HOLDINGS INC EURONET WORLDWIDE INC
Top 3 Holdings Name WIRECARD AG SQUARE INC - A PAYPAL HOLDINGS INC
Geographical Breakdown
Currency exposure
Japan 3.9% 16.3%
58.6%
21.2%
3.9% 5.1%
Emerging markets
21.2%
Europe 69.8% US
Asset Allocation
JPY KRW
Equities
EUR
Cash
USD
100%
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
Main Features Asset Class Inception Date Currency Type of Return Ticker (EUR Inst. Class) ISIN (inst. Class EUR) ISIN (Retail Class EUR) ISIN (Retail $USD Class) Issuer Issue Price Last Price Sharpe Ratio Correlation Beta Benchmark
While the mobile payment infrastructure is now in place (NFC-enabled phones and POS terminals, various payment platforms such Apple Pay), we are just entering the second phase of growth for the theme, which is mass adoption of payment solutions by consumers. Indeed, the increasing marketing around payment platforms and the deployment of value-added services (such as rewards, loyalty and couponing) just started to give a boost to consumer engagement. Longer term, powerful catalysts (in-car payments, virtual reality shopping, government incentives…) should make mobile payments ubiquitous.
Equity 22-Apr-14 Euro Total Return IND1AMPE CH0239656462 CH0239656603 CH0239657494 Société Générale 100.0 190.2 1.45 0.83 1.08 MSCI World Net Return (EUR)
MONTHLY RETURNS (%) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV 2017 4.3% 7.1% 2.9% 1.6% 4.1% -1.4% 2.0% 2.4% 2.8% 8.8% -1.2% 2016 -5.6% -1.5% 0.7% 0.7% 7.5% -3.9% 2.7% -0.5% 1.7% -0.3% -0.3% 2015 6.1% 4.9% 4.8% 1.0% 6.5% -8.9% 2.9% -4.1% -2.9% 9.4% 8.5% 2014 0.2% 5.6% 2.1% -6.1% 4.4% 0.0% -1.1% 8.3%
DEC -1.5% -0.6% -3.7% -1.8%
210
ANNUAL 36.5% 0.0% 25.0% 11.2%
190 170 150 130
Jul-17
Oct-17
Jan-17
Apr-17
Jul-16
Oct-16
Jan-16
Apr-16
90
16-Oct-14
Jul-15
23-Nov-17
94.6
Oct-15
203.8
All Time Low
Jan-15
All Time High
Apr-15
110
Jul-14
Date
Oct-14
Price
Apr-14
HIGHS/LOWS
December 2017 highlights The AtonRâ Mobile Payments certificate (EUR) fell 1.5% in December, underperforming the MSCI World Net Return by 2.1%. In 2017, it outperformed by 29% and, launch-to-date (April 22, 2014 launch), it outperforms by 35.8%. Even if it’s now a well-known fact that China is a dominant force in mobile payments, usage figures in the country are stunning to say the least: 94% of connected consumers in China use mobile payments according to TNS. While they are lower in India, usage figures have been rising fast and are already impressive as 35% of connected consumers use mobile payments and 23% of them at least weekly. Clearly, emerging markets are showing the way to developed countries and point to significant upside potential for US and European companies exposed to the theme once mobile payments become mainstream. Even if adoption of the technology has been slow in the developed world (only 25% of eligible users for Apple Pay), there were finally some signs of traction in 2017 that bode well for 2018. While Apple Pay active users more than doubled over the past year, reaching 86 million according to Juniper Research, annual transactions grew 330%. And Samsung Pay keeps gaining ground as its loyalty program Samsung Rewards sees 25% growth every month and has contributed to 49% of Samsung Pay’s growth since its launch. Importantly, Samsung Rewards is a source of increased user engagement as Samsung’s wallet records 1.3 monthly transactions on average, nearly double Apple’s number. Aside from rewards and loyalty programs, peer-to-peer payment features are the other way to get smartphone users into mobile payments and to increase engagement. In that respect, the recent roll out of Apple Pay Cash, in which money can be sent to friends and family in a message or using Siri and then spent at Apple Pay merchants (both in-app and in-store), could be a game changer and ignite mobile payments adoption. Looking a bit further, the in-car payments catalyst we have long been highlighting and which lets drivers pay for gas, toll fees or public parking without having to pull their credit card or smart phone from their pocket is starting to take shape. General Motors announced the launch of a Marketplace platform on the dashboard of its 2017 and 2018 model-year vehicles that lets drivers place take-away orders or make reservations with the likes of Starbucks, Dunkin’ Donuts and Priceline. And other car makers will probably follow suit soon, suggesting that in-car payments could become a real business by 2020.
AtonRâ Partners SA 12 rue Pierre Fatio - 1204 Geneva - Switzerland - +41 22 310 15 01 - http://www.atonra.ch
ATONRÂ MOBILE PAYMENTS CERTIFICATE
Top 3 Performers
Worst 3 Performers
Name
Name
WIRECARD AG GMO PAYMENT GATEWAY INC TOTAL SYSTEM SERVICES INC
SQUARE INC - A PAYPAL HOLDINGS INC EURONET WORLDWIDE INC
Top 3 Holdings Name WIRECARD AG SQUARE INC - A PAYPAL HOLDINGS INC
Geographical Breakdown
Currency exposure
Japan 3.9% 16.3%
58.6%
21.2%
3.9% 5.1%
Emerging markets
21.2%
Europe 69.8% US
Asset Allocation
JPY KRW
Equities
EUR
Cash
USD
100%
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
