atonrâ mobile payments certificate
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 about to enter 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) should give a major boost to consumer engagement as soon as 2017. Longer term, powerful catalysts (incar payments, virtual reality shopping, government incentives…) should make mobile payments ubiquitous.
Equity 22-Apr-14 Euro Total Return IND1AMPE CH0239656462 CH0239656603 CH0239657494 Société Générale 100.0 195.3 1.57 0.83 1.08 MSCI World Net Return (EUR)
MONTHLY RETURNS (%) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2017 4.3% 7.1% 2.9% 1.6% 4.1% -1.4% 2.0% 2.4% 2.8% 8.8% 2016 -5.6% -1.5% 0.7% 0.7% 7.5% -3.9% 2.7% -0.5% 1.7% -0.3% -0.3% -0.6% 2015 6.1% 4.9% 4.8% 1.0% 6.5% -8.9% 2.9% -4.1% -2.9% 9.4% 8.5% -3.7% 2014 0.2% 5.6% 2.1% -6.1% 4.4% 0.0% -1.1% 8.3% -1.8%
210
ANNUAL 40.2% 0.0% 25.0% 11.2%
190 170 150 130
Jun-17
Sep-17
Mar-17
Sep-16
Dec-16
Jun-16
Dec-15
90
16-Oct-14
Mar-16
31-Oct-17
94.6
Jun-15
195.3
All Time Low
Sep-15
All Time High
Mar-15
110
Dec-14
Date
Jun-14
Price
Sep-14
HIGHS/LOWS
October 2017 highlights The AtonRâ Mobile Payments certificate (EUR) gained 8.8% in October, outperforming the MSCI World Net Return (EUR) by 5.4%. Year-to-date, it outperforms by 33.2% and, launch-to-date (April 22, 2014 launch), it outperforms by 41.6%. PayPal is arguably a pioneer in online payments. But when it comes to mobile payments at retailers, the company is far from being a dominant force. Things could change pretty quickly as PayPal announced last month that its customers can now use its peer-to-peer app Venmo at more than 2 million US retailers. Venmo, which was initially designed to let people wire money to friends (to split a restaurant bill for instance), has been a huge success, attracting millions of (mainly young) users and processing more than $9bn of payment volume in the latest quarter (+93% growth year-on-year). So, turning Venmo into a new mobile payment method at retailers could allow PayPal to drag away many consumers (who use Venmo) from the likes of Apple Pay and Samsung Pay and to increase its clout in the mobile payment space. Importantly, this is a major opportunity for PayPal to finally monetize Venmo: while peer-to-peer transactions between consumers will remain free of charge, payment transactions at retailers will give rise to a processing fee supported by the merchant like any other electronic transaction, suggesting that the beat-and-raise cycle at PayPal is likely to keep going. In the payment processing business (the back-office of electronic payments), JP Morgan made two investments in recent weeks: first, a $100m investment in Bill.com (B2B electronic payments) and, second, the $220m acquisition of WePay, a technology provider for in-app payments. After the rumored takeover attempt over leading payment processor Worldpay a few months ago, JP Morgan appears determined to become a major player in the field of payments. And JP Morgan should not be alone, as Barclays CEO commented last month that “all the banks are very focused on the payments space. That may be where the battleground of finance is fought over the next 15 years.” Against this backdrop, we keep seeing a lot of strategic value (in other words, M&A appeal) in the payment processing space after three major takeovers in recent months (Paysafe, Worldpay, Nets). In a volume business where scale is key, we believe that some of the smallest players , specifically in Europe (Wirecard, Worldine), will have to find strategic partners or sell themselves at some point.
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
SQUARE INC - A STMICROELECTRONICS NV PAYPAL HOLDINGS INC
BLACKHAWK NETWORK HOLDINGS I VANTIV INC - CL A FISERV INC
Top 3 Holdings Name SQUARE INC WIRECARD AG PAYPAL HOLDINGS INC
Geographical Breakdown
Currency exposure
Japan 3.2% 20.4%
56.1%
3.2% 4.0% 20.3%
Emerging markets Europe
20.3%
Asset Allocation
KRW JPY
Equities
EUR
Cash
72.5% US
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 about to enter 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) should give a major boost to consumer engagement as soon as 2017. Longer term, powerful catalysts (incar payments, virtual reality shopping, government incentives…) should make mobile payments ubiquitous.
Equity 22-Apr-14 Euro Total Return IND1AMPE CH0239656462 CH0239656603 CH0239657494 Société Générale 100.0 195.3 1.57 0.83 1.08 MSCI World Net Return (EUR)
MONTHLY RETURNS (%) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2017 4.3% 7.1% 2.9% 1.6% 4.1% -1.4% 2.0% 2.4% 2.8% 8.8% 2016 -5.6% -1.5% 0.7% 0.7% 7.5% -3.9% 2.7% -0.5% 1.7% -0.3% -0.3% -0.6% 2015 6.1% 4.9% 4.8% 1.0% 6.5% -8.9% 2.9% -4.1% -2.9% 9.4% 8.5% -3.7% 2014 0.2% 5.6% 2.1% -6.1% 4.4% 0.0% -1.1% 8.3% -1.8%
210
ANNUAL 40.2% 0.0% 25.0% 11.2%
190 170 150 130
Jun-17
Sep-17
Mar-17
Sep-16
Dec-16
Jun-16
Dec-15
90
16-Oct-14
Mar-16
31-Oct-17
94.6
Jun-15
195.3
All Time Low
Sep-15
All Time High
Mar-15
110
Dec-14
Date
Jun-14
Price
Sep-14
HIGHS/LOWS
October 2017 highlights The AtonRâ Mobile Payments certificate (EUR) gained 8.8% in October, outperforming the MSCI World Net Return (EUR) by 5.4%. Year-to-date, it outperforms by 33.2% and, launch-to-date (April 22, 2014 launch), it outperforms by 41.6%. PayPal is arguably a pioneer in online payments. But when it comes to mobile payments at retailers, the company is far from being a dominant force. Things could change pretty quickly as PayPal announced last month that its customers can now use its peer-to-peer app Venmo at more than 2 million US retailers. Venmo, which was initially designed to let people wire money to friends (to split a restaurant bill for instance), has been a huge success, attracting millions of (mainly young) users and processing more than $9bn of payment volume in the latest quarter (+93% growth year-on-year). So, turning Venmo into a new mobile payment method at retailers could allow PayPal to drag away many consumers (who use Venmo) from the likes of Apple Pay and Samsung Pay and to increase its clout in the mobile payment space. Importantly, this is a major opportunity for PayPal to finally monetize Venmo: while peer-to-peer transactions between consumers will remain free of charge, payment transactions at retailers will give rise to a processing fee supported by the merchant like any other electronic transaction, suggesting that the beat-and-raise cycle at PayPal is likely to keep going. In the payment processing business (the back-office of electronic payments), JP Morgan made two investments in recent weeks: first, a $100m investment in Bill.com (B2B electronic payments) and, second, the $220m acquisition of WePay, a technology provider for in-app payments. After the rumored takeover attempt over leading payment processor Worldpay a few months ago, JP Morgan appears determined to become a major player in the field of payments. And JP Morgan should not be alone, as Barclays CEO commented last month that “all the banks are very focused on the payments space. That may be where the battleground of finance is fought over the next 15 years.” Against this backdrop, we keep seeing a lot of strategic value (in other words, M&A appeal) in the payment processing space after three major takeovers in recent months (Paysafe, Worldpay, Nets). In a volume business where scale is key, we believe that some of the smallest players , specifically in Europe (Wirecard, Worldine), will have to find strategic partners or sell themselves at some point.
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
SQUARE INC - A STMICROELECTRONICS NV PAYPAL HOLDINGS INC
BLACKHAWK NETWORK HOLDINGS I VANTIV INC - CL A FISERV INC
Top 3 Holdings Name SQUARE INC WIRECARD AG PAYPAL HOLDINGS INC
Geographical Breakdown
Currency exposure
Japan 3.2% 20.4%
56.1%
3.2% 4.0% 20.3%
Emerging markets Europe
20.3%
Asset Allocation
KRW JPY
Equities
EUR
Cash
72.5% US
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
