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 over 2018-20. 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 100.0 207.2 1.15 0.77 1.12 MSCI World Net Return (EUR)
MONTHLY RETURNS (%)
Feb-18
Aug-17
Nov-17
Feb-17
May-17
Aug-16
Nov-16
Feb-16
May-16
16-Oct-14
Aug-15
94.6
Nov-15
All Time Low
Feb-15
22-Jan-18
May-15
Date
207.8
Aug-14
Price
All Time High
-1.6% -0.6% -3.7% -1.8%
210 200 190 180 170 160 150 140 130 120 110 100 90
ANNUAL 8.9% 36.3% 0.0% 25.0% 11.2%
Nov-14
HIGHS/LOWS
DEC
May-14
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV 2018 8.9% 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%
January 2018 highlights The AtonRâ Mobile Payments certificate (EUR) gained 8.9% in January, outperforming the MSCI World Net Return (EUR) by 7.5%. Launch-to-date (April 22, 2014 launch), it outperforms its reference index by 50.5%. Over the last months, peer-to-peer apps Venmo (owned by PayPal) and Zelle (owned by a consortium of US banks) have been two major trending topics in the mobile payments industry probably thanks to their social nature: peer-to-peer apps are used for sending money to family or share a restaurant bill for instance with friends. The trend is likely to keep going in 2018 as both apps just launched media campaigns (TV commercials in the US for Zelle and in France notably for PayPal) to reach out to mass market consumers. The success of these platforms (which has sparked similar offerings from Apple Pay and Square among others) is likely to be pivotal in the takeoff of mobile payments adoption in the US and Europe as they educate consumers about digital payments and as they gradually turn into full mobile payment apps, allowing consumers to pay in-store. Hence, we remain convinced that mobile payments adoption in developed countries, which is admittedly low (25% of eligible users for Apple Pay notably), is at an inflection point and should record massive growth over 2018-20. As our investors know, our Mobile Payments portfolio is mainly invested right now in payment processors that handle all electronic transactions and are thus fully exposed to the growing volume of mobile payments. Interestingly, these processors could also play a central role in the blockchain and cryptocurrency revolution. First, any cryptocurrency will have to get the seal of approval of the various companies involved in the processing of payments to become a means of exchange. In this regard, it’s worth noting that fintech unicorn Stripe stopped supporting bitcoin due to slow confirmation times and high transaction fees (close to $40) but highlighted other cryptos as contenders (Ethereum, Stellar, OmiseGO). And Japanese messaging app Line is reportedly in discussions to allow cryptocurrency payments. Second, on the infrastructure side, processors are expected to use the blockchain to move money faster and potentially at a lower cost, as illustrated by money transfer company MoneyGram that announced it was testing Ripple’s XRP for international remittances in an attempt to move funds faster and free up capital.
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 PAYPAL HOLDINGS INC WIRECARD AG
SAMSUNG ELECTRONICS CO LTD APPLE INC EURONET WORLDWIDE INC
Top 3 Holdings Name SQUARE INC - A WIRECARD AG PAYPAL HOLDINGS INC
Geographical Breakdown
Currency exposure
Japan 4.8% 16.1%
58.0%
21.1%
4.8% 3.4%
Emerging markets
21.1%
Europe 70.7% US
Asset Allocation
KRW JPY
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 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 over 2018-20. 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 100.0 207.2 1.15 0.77 1.12 MSCI World Net Return (EUR)
MONTHLY RETURNS (%)
Feb-18
Aug-17
Nov-17
Feb-17
May-17
Aug-16
Nov-16
Feb-16
May-16
16-Oct-14
Aug-15
94.6
Nov-15
All Time Low
Feb-15
22-Jan-18
May-15
Date
207.8
Aug-14
Price
All Time High
-1.6% -0.6% -3.7% -1.8%
210 200 190 180 170 160 150 140 130 120 110 100 90
ANNUAL 8.9% 36.3% 0.0% 25.0% 11.2%
Nov-14
HIGHS/LOWS
DEC
May-14
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV 2018 8.9% 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%
January 2018 highlights The AtonRâ Mobile Payments certificate (EUR) gained 8.9% in January, outperforming the MSCI World Net Return (EUR) by 7.5%. Launch-to-date (April 22, 2014 launch), it outperforms its reference index by 50.5%. Over the last months, peer-to-peer apps Venmo (owned by PayPal) and Zelle (owned by a consortium of US banks) have been two major trending topics in the mobile payments industry probably thanks to their social nature: peer-to-peer apps are used for sending money to family or share a restaurant bill for instance with friends. The trend is likely to keep going in 2018 as both apps just launched media campaigns (TV commercials in the US for Zelle and in France notably for PayPal) to reach out to mass market consumers. The success of these platforms (which has sparked similar offerings from Apple Pay and Square among others) is likely to be pivotal in the takeoff of mobile payments adoption in the US and Europe as they educate consumers about digital payments and as they gradually turn into full mobile payment apps, allowing consumers to pay in-store. Hence, we remain convinced that mobile payments adoption in developed countries, which is admittedly low (25% of eligible users for Apple Pay notably), is at an inflection point and should record massive growth over 2018-20. As our investors know, our Mobile Payments portfolio is mainly invested right now in payment processors that handle all electronic transactions and are thus fully exposed to the growing volume of mobile payments. Interestingly, these processors could also play a central role in the blockchain and cryptocurrency revolution. First, any cryptocurrency will have to get the seal of approval of the various companies involved in the processing of payments to become a means of exchange. In this regard, it’s worth noting that fintech unicorn Stripe stopped supporting bitcoin due to slow confirmation times and high transaction fees (close to $40) but highlighted other cryptos as contenders (Ethereum, Stellar, OmiseGO). And Japanese messaging app Line is reportedly in discussions to allow cryptocurrency payments. Second, on the infrastructure side, processors are expected to use the blockchain to move money faster and potentially at a lower cost, as illustrated by money transfer company MoneyGram that announced it was testing Ripple’s XRP for international remittances in an attempt to move funds faster and free up capital.
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 PAYPAL HOLDINGS INC WIRECARD AG
SAMSUNG ELECTRONICS CO LTD APPLE INC EURONET WORLDWIDE INC
Top 3 Holdings Name SQUARE INC - A WIRECARD AG PAYPAL HOLDINGS INC
Geographical Breakdown
Currency exposure
Japan 4.8% 16.1%
58.0%
21.1%
4.8% 3.4%
Emerging markets
21.1%
Europe 70.7% US
Asset Allocation
KRW JPY
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
