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, and mainly benefit companies with strong and predictable cash-flows that handle electronic transactions.
Equity 22-Apr-14 Euro Total Return IND1AMPE CH0239656462 CH0239656603 CH0239657494 Société Générale 100.0 167.1 1.32 0.84 1.07 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% 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%
HIGHS/LOWS
Price
All Time High
173.0
22-Jun-17
All Time Low
94.6
16-Oct-14
180 170 160 150 140 130 120 110 100 90
ANNUAL 19.9% 0.0% 25.0% 11.2%
Feb-17
May-17
Nov-16
Aug-16
May-16
Feb-16
Nov-15
Aug-15
May-15
Feb-15
Aug-14
Nov-14
May-14
Date
June 2017 highlights The AtonRâ Mobile Payments certificate fell 1.4% in June, underperforming the MSCI World Net Return by 0.4%. Year-to-date, it outperforms by 17.6% and, launch-to-date (April 22, 2014 launch), it outperforms by 20.1%. There’s definitely a lot of activity around peer-to-peer (P2P) payment features. While Apple officially announced its own P2P called Pay Cash and the largest U.S. banks unveiled a similar service called Zelle, PayPal’s P2P business Venmo is following in the footsteps of Square Cash and is testing a physical debit card. Quite surprising at first sight, this move towards plastic cards can actually be seen as a way to enhance the user’s experience and indirectly to increase engagement on the mobile app as the debit card will allow him to use the cash stored on the app and to avoid a wire transfer to his traditional bank account. For P2P companies such as Venmo which most of the time do not charge fees on P2P payments, this move could also open the way to monetize the service through the collection of interchange fees from merchants. As we explained last month, P2P payments could become a killer app for the various mobile payment platforms as they appeal to a large majority of millennials and could then give a major boost to mobile payment adoption as soon as 2017. Looking further out, Amazon’s announced entry in the physical retail space through the acquisition of brick-and-mortar retailer Whole Foods Market is likely to have a major impact on the traditional checkout experience in most stores and to foster mobile payments. Indeed, it’s likely that Amazon will bring its Amazon Go concept (which uses notably computer vision and sensors to skip the checkout line and automatically debit the shopper’s Amazon account) to Whole Foods in the future, putting pressure on traditional retailers to follow suit with a seamless, mobile-based checkout experience. Meanwhile in emerging markets, which have historically been a fertile ground for mobile payments, a survey from FIS pointed to a significant uptick over the past year in the use of mobile devices and other digital banking channels by consumers in India. 60% of them used mobile platforms for banking and payment needs, up from 39% last year. And more than 30% of common payments made by Generation Y members in the country were done through mobile apps. This shows that the demonetization in the country announced in November 2016 is changing consumers’ habits and leading to a major transaction volume boost for payment processors (PayTM, the largest payment processor in India, recorded 89% of its transactions on mobile in 2016...). With government incentives for a cashless society popping up across the world, the outlook for digital payments and payment processors is bright. Interestingly, the Indian market has attracted the attention of Chinese Fintech giants: Alibaba bought a 40% stake in PayTM and Tencent took part in a recent funding round for Hike, an Indian messaging app that’s expanding into mobile payments like Tencent’s WeChat.
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
ALIBABA GROUP HOLDING-SP ADR QIWI PLC-SPONSORED ADR CIELO SA
STMICROELECTRONICS NV ALPHABET INC-CL C GMO PAYMENT GATEWAY INC
Top 3 Holdings Name SQUARE INC - A GLOBAL PAYMENTS INC QIWI PLC-SPONSORED ADR
Geographical Breakdown
Currency exposure
UK
5.2% 3.1% 24.2% 53.7%
5.2% 3.9%
Japan Emerging markets Europe
13.8% US
70.0%
4.0%
Asset Allocation GBP
3.1%
BRL
13.8%
KRW
Equities
JPY
Cash
EUR
100%
USD
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, and mainly benefit companies with strong and predictable cash-flows that handle electronic transactions.
Equity 22-Apr-14 Euro Total Return IND1AMPE CH0239656462 CH0239656603 CH0239657494 Société Générale 100.0 167.1 1.32 0.84 1.07 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% 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%
HIGHS/LOWS
Price
All Time High
173.0
22-Jun-17
All Time Low
94.6
16-Oct-14
180 170 160 150 140 130 120 110 100 90
ANNUAL 19.9% 0.0% 25.0% 11.2%
Feb-17
May-17
Nov-16
Aug-16
May-16
Feb-16
Nov-15
Aug-15
May-15
Feb-15
Aug-14
Nov-14
May-14
Date
June 2017 highlights The AtonRâ Mobile Payments certificate fell 1.4% in June, underperforming the MSCI World Net Return by 0.4%. Year-to-date, it outperforms by 17.6% and, launch-to-date (April 22, 2014 launch), it outperforms by 20.1%. There’s definitely a lot of activity around peer-to-peer (P2P) payment features. While Apple officially announced its own P2P called Pay Cash and the largest U.S. banks unveiled a similar service called Zelle, PayPal’s P2P business Venmo is following in the footsteps of Square Cash and is testing a physical debit card. Quite surprising at first sight, this move towards plastic cards can actually be seen as a way to enhance the user’s experience and indirectly to increase engagement on the mobile app as the debit card will allow him to use the cash stored on the app and to avoid a wire transfer to his traditional bank account. For P2P companies such as Venmo which most of the time do not charge fees on P2P payments, this move could also open the way to monetize the service through the collection of interchange fees from merchants. As we explained last month, P2P payments could become a killer app for the various mobile payment platforms as they appeal to a large majority of millennials and could then give a major boost to mobile payment adoption as soon as 2017. Looking further out, Amazon’s announced entry in the physical retail space through the acquisition of brick-and-mortar retailer Whole Foods Market is likely to have a major impact on the traditional checkout experience in most stores and to foster mobile payments. Indeed, it’s likely that Amazon will bring its Amazon Go concept (which uses notably computer vision and sensors to skip the checkout line and automatically debit the shopper’s Amazon account) to Whole Foods in the future, putting pressure on traditional retailers to follow suit with a seamless, mobile-based checkout experience. Meanwhile in emerging markets, which have historically been a fertile ground for mobile payments, a survey from FIS pointed to a significant uptick over the past year in the use of mobile devices and other digital banking channels by consumers in India. 60% of them used mobile platforms for banking and payment needs, up from 39% last year. And more than 30% of common payments made by Generation Y members in the country were done through mobile apps. This shows that the demonetization in the country announced in November 2016 is changing consumers’ habits and leading to a major transaction volume boost for payment processors (PayTM, the largest payment processor in India, recorded 89% of its transactions on mobile in 2016...). With government incentives for a cashless society popping up across the world, the outlook for digital payments and payment processors is bright. Interestingly, the Indian market has attracted the attention of Chinese Fintech giants: Alibaba bought a 40% stake in PayTM and Tencent took part in a recent funding round for Hike, an Indian messaging app that’s expanding into mobile payments like Tencent’s WeChat.
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
ALIBABA GROUP HOLDING-SP ADR QIWI PLC-SPONSORED ADR CIELO SA
STMICROELECTRONICS NV ALPHABET INC-CL C GMO PAYMENT GATEWAY INC
Top 3 Holdings Name SQUARE INC - A GLOBAL PAYMENTS INC QIWI PLC-SPONSORED ADR
Geographical Breakdown
Currency exposure
UK
5.2% 3.1% 24.2% 53.7%
5.2% 3.9%
Japan Emerging markets Europe
13.8% US
70.0%
4.0%
Asset Allocation GBP
3.1%
BRL
13.8%
KRW
Equities
JPY
Cash
EUR
100%
USD
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
