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 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 100.0 193.0 1.52 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% -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% -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 38.5% 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
November 2017 highlights The AtonRâ Mobile Payments certificate (EUR) fell 1.2% in November, underperforming the MSCI World Net Return by 1%. Year-to-date, it outperforms by 31.7% and, launch-to-date (April 22, 2014 launch), it outperforms by 39.5%. Black Friday online shopping hit an all-time high this year, growing 24% year-on-year according to Salesforce, with purchases made on mobile devices accounting for nearly 37% of total spending according to Adobe. This shows that the shopping experience has materially improved lately on smartphones and tablets which had been historically more used for browsing than transacting. Importantly, this change in consumer behavior could allow mobile payments to finally crack in-store transactions with a recent Deloitte survey finding that 22% of consumers expect to make in-store purchases via a mobile wallet during the 2017 holiday season and that 74% expect smartphones to improve the overall in-store shopping experience through smart notifications and value-added services such as rewards and coupons. Aside from rewards and loyalty programs, peer-to-peer payment features are the other way to increase user engagement and are definitely becoming a hot topic in the mobile payment industry. While European fintech unicorn TransferWise reached a $1.6bn valuation in its latest funding round, Square made the headlines last month when it announced that its peer-to-peer Square Cash app was starting to let users buy and sell bitcoins. It’s probably more a marketing coup than a short-term earnings driver for the company but Square’s initiative suggests that the company is ahead of the pack when it comes to integrating new technologies. Importantly, this move could have two major positive implications for Square. First, it could help it attract new users on its peer-to-peer platform before potentially turning it into a mobile payment app like PayPal did with its Venmo app recently. The company has historically been a provider of payment services for merchants and this peer-to-peer / mobile payment app could help it reach out to a large base of consumers and materially expand its total addressable market. Second, this is the opportunity to live test bitcoins and to potentially open the possibility for online and/or physical merchants to accept payments in bitcoins in Square’s core processing business. The company, which was initially focused on small merchants, is now onboarding larger merchants and innovations such as a bitcoin payment option could help it keep gaining market share at the expense of legacy payment processors.
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
TENCENT HOLDINGS LTD-UNS ADR SQUARE INC - A WIRECARD AG
QIWI PLC-SPONSORED ADR STMICROELECTRONICS NV ALIBABA GROUP HOLDING-SP ADR
Top 3 Holdings Name SQUARE INC WIRECARD AG PAYPAL HOLDINGS INC
Geographical Breakdown
Currency exposure
Japan 4.5% 16.3%
58.1%
21.1%
4.5% 3.8%
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 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 100.0 193.0 1.52 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% -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% -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 38.5% 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
November 2017 highlights The AtonRâ Mobile Payments certificate (EUR) fell 1.2% in November, underperforming the MSCI World Net Return by 1%. Year-to-date, it outperforms by 31.7% and, launch-to-date (April 22, 2014 launch), it outperforms by 39.5%. Black Friday online shopping hit an all-time high this year, growing 24% year-on-year according to Salesforce, with purchases made on mobile devices accounting for nearly 37% of total spending according to Adobe. This shows that the shopping experience has materially improved lately on smartphones and tablets which had been historically more used for browsing than transacting. Importantly, this change in consumer behavior could allow mobile payments to finally crack in-store transactions with a recent Deloitte survey finding that 22% of consumers expect to make in-store purchases via a mobile wallet during the 2017 holiday season and that 74% expect smartphones to improve the overall in-store shopping experience through smart notifications and value-added services such as rewards and coupons. Aside from rewards and loyalty programs, peer-to-peer payment features are the other way to increase user engagement and are definitely becoming a hot topic in the mobile payment industry. While European fintech unicorn TransferWise reached a $1.6bn valuation in its latest funding round, Square made the headlines last month when it announced that its peer-to-peer Square Cash app was starting to let users buy and sell bitcoins. It’s probably more a marketing coup than a short-term earnings driver for the company but Square’s initiative suggests that the company is ahead of the pack when it comes to integrating new technologies. Importantly, this move could have two major positive implications for Square. First, it could help it attract new users on its peer-to-peer platform before potentially turning it into a mobile payment app like PayPal did with its Venmo app recently. The company has historically been a provider of payment services for merchants and this peer-to-peer / mobile payment app could help it reach out to a large base of consumers and materially expand its total addressable market. Second, this is the opportunity to live test bitcoins and to potentially open the possibility for online and/or physical merchants to accept payments in bitcoins in Square’s core processing business. The company, which was initially focused on small merchants, is now onboarding larger merchants and innovations such as a bitcoin payment option could help it keep gaining market share at the expense of legacy payment processors.
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
TENCENT HOLDINGS LTD-UNS ADR SQUARE INC - A WIRECARD AG
QIWI PLC-SPONSORED ADR STMICROELECTRONICS NV ALIBABA GROUP HOLDING-SP ADR
Top 3 Holdings Name SQUARE INC WIRECARD AG PAYPAL HOLDINGS INC
Geographical Breakdown
Currency exposure
Japan 4.5% 16.3%
58.1%
21.1%
4.5% 3.8%
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
