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The AtonR Fund A Journey Into The Future JUNE 2020 www.atonra.ch - - PowerPoint PPT Presentation

YOUR ASSET MANAGEMENT COMPANY Knowledgeable Independent Focused The AtonR Fund A Journey Into The Future JUNE 2020 www.atonra.ch sales@atonra.ch +41 22 906 16 16 7 rue de la Croix d'Or, 1204 Geneva, Switzerland 1 JANUARY


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1 JANUARY 2020

JUNE 2020

YOUR ASSET MANAGEMENT COMPANY

www.atonra.ch • sales@atonra.ch • +41 22 906 16 16 • 7 rue de la Croix d'Or, 1204 Geneva, Switzerland

Knowledgeable Independent Focused

The AtonRâ Fund A Journey Into The Future

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2 JUNE 2020

Exposure To The Most Promising Themes Fund Characteristics Track Record and Statistics Portfolio Overview

The AtonRâ Fund Thematic Investing

AI & Robotics Bionics Biotechnology Fintech Mobile Payments Security & Space Sustainable Future

Annexes: Thematic Portfolios Data

Important Information A Private Equity Approach To Listed Investments History A Long Track Record On Sharply Focused Themes A Dedicated And Complementary Team The Discovery Of Themes Our Research Know-How 3 4 5 6 7 8 9 Thematic Investment Process Step 1 – Fundamental Research Step 2 – Stock Selection Step 3 – Thematic Bucket Construction Step 4 – Risk Management 10 11 12 13 14 15 16 17 19 20 22 24 26 28 30 32

Atonrâ At A Glance

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3 JUNE 2020 This document has been produced by the organizational unit responsible for investment research (Research unit) and sales (Sales unit) of AtonRâ Partners and sent to you by the company sales

  • representatives. Although AtonRâ Partners SA believes that the information provided in this doc-

ument is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this document. The information contained in this document is sent to you by way of information and cannot be divulged to a third party without the prior consent of AtonRâ Partners. While all reasonable effort has been made to ensure that the information contained is not untrue or misleading at the time

  • f publication, no representation is made as to its accuracy or completeness and it should not

be relied upon as such. This document does not replace a legal document and notably the fund prospectus or KIID relat- ing to any specifjc fjnancial instrument herein referred, which may be obtained upon request free

  • f charge from AtonRâ Partners.

AtonRâ Partners is an asset management company, founded in 2004 with head offjce in Geneva, incorporated under Swiss law, duly approved by the Swiss Financial Market Supervisory Authority (FINMA) under the Swiss Col- lective Investment Schemes Act.

Disclaimer

The opinions herein do not consider individual clients’ circumstances, objectives, or needs. Prior to entering into a transaction you should consult with your own legal, regulatory, tax, fjnancial and accounting advisers to the extent you deem necessary to make your own investment decisions. The information contained in this document is as of the date hereof only and is subject to change without notice. Any prices are indicative. Past performance is not indicative or a guarantee of future results. Investment losses may occur, and investors could lose some or all of their invest-

  • ment. Individual clients’ fjnancial objectives are not considered.

Any material provided to you is intended only for discussion purposes and is not intended as an

  • ffer 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. The products described in this document may not be directly or indirectly offered or sold in the United States of America or to U.S. Persons.

AtonRâ Partners is a conviction-driven asset manager combining industrial and scientifjc research with fjnancial analysis. AtonRâ Partners focuses on long-term trends in the healthcare, renewable energy and technology sectors, powerful enough to be turned into thematic equity portfolios.

Important Information

About AtonRâ Partners

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4 JUNE 2020

DELIVERING EXCELLENCE

A pioneer in independent thematic equity research and investments. First to launch investment themes on Artifjcial Intelligence & Robotics, Bionics, Mobile

  • Payments. The fjrst asset manager

integrating non-fjnancial scientists to the investment team.

KNOWLEDGE IS POWER

A team of fjnancial professionals and scientists ensure that knowledge acquired throughout many years of fundamental research and fjnancial analysis is constantly expanded and capitalized upon.

TIME IS INVESTORS' ALLY

Technology changes the world and fosters growth. Yet it takes time to turn it into capital appreciation.

DRIVEN BY PASSION

Passion is the fuel that keeps the engine of innovation running and innovation is the key to technological and scientifjc progress.

A Private Equity Approach To Listed Investments

ATONRÂ AT A GLANCE

T I M E I S I N V E S T O R S ' A L L Y D E L I V E R I N G E X C E L L E N C E D R I V E N B Y P A S S I O N K N O W L E D G E I S P O W E R

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5 JUNE 2020

2004 2014 2018

EQUITY RESEARCH AS THE FOUNDATION OF OUR APPROACH

  • Thematic research
  • n growth-oriented

themes.

  • Intellectual capital

and critical understanding proved and recognized.

SWITCH TO ASSET MANAGEMENT

  • Fundamental research

turned into Thematic Investments.

  • Launch of AMC’s

(actively managed certifjcates).

CONTINUOUS INNOVATION

  • Strengthening
  • f Academic

collaboration.

  • Technology Advisory

Committee.

  • Expansion of the

workforce.

2019–2020 The Future...

LATEST DEVELOPMENTS

  • FINMA license.
  • UCITS umbrella fund.

WHERE DO WE WANT TO GO?

  • Leveraging our

fundamental expertise in the private equity world.

  • Launch of additional

themes. ...keep innovating.

History

ATONRÂ AT A GLANCE

2014 2016 2015 2017 2019 2018 June 2020 400Mn 800Mn 200Mn 600Mn

AUM

$10Mn $100Mn $50Mn $350Mn $750Mn $550Mn $800Mn

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6 JUNE 2020

A Long Track Record On Sharply Focused Themes

Mobile Payments, Mobile payments to rise sharply as consumers move to smartphones for their daily purchases. Bionics Living better not necessarily

  • longer. Technology opens

new ways to tackle human disabilities and physical disorders. Artifjcial Intelligence Breakthroughs in hardware coupled with massive data are the key fundamentals for AI to become ubiquitous in every industry. Sustainable Future Grid-parity is the long-term needed catalyst to speed up the switch from fossils to renewable energies. Biotechnology The next generation of drugs to revolutionize biotechnology forever. Fintech Mobile payments opening up the road for more effjcient, accessible, and cheaper fjnancial services. What's next? Security & Space Security undertakes its digital transformation to enable and secure progress. Space is the next frontier.

2014 APRIL 2015 MARCH 2018 OCTOBER 2017 JANUARY 2017 MAY 2015 OCTOBER 2016 JANUARY ATONRÂ AT A GLANCE

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7 JUNE 2020

A Dedicated And Complementary Team

ATONRÂ AT A GLANCE

SCIENTIFIC RESEARCH & FUNDAMENTAL ANALYSIS

Claudia Collin Maad Osta Kevin Decoster Toviah Moldwin Sjoerd van Steenkiste Christopher Wittlinger Christoph Sinhart Małgorzata Miklaszewska Katherine Taglieri Antoine Walter David Wigger

BUSINESS DEVELOPMENT MULTIMEDIA DESIGN PORTFOLIO MANAGEMENT / ANALYSIS COMPLIANCE

& RISK

MANAGEMENT CFO

Stefano Rodella CEO / CIO Christophe Magnin Dina Fausto Mark Temnikov Christian Wolf Joachim Nahmani Patrice Dussol

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8 JUNE 2020

The Discovery Of Themes

ATONRÂ AT A GLANCE

  • 1. The addressable market

must be large enough to have an impact on global GDP over 5 to 10 years.

  • 4. The three following cycles

must be present in each theme:

  • Capital infrastructure

phase.

  • Application phase.
  • Commercialization

phase.

  • 2. The growth factor must

be at least 3 times global GDP growth.

  • 3. The theme must be large

enough to overcome cyclical swings.

Searching, identifying and selecting themes with an outsized impact on the global economy.

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9 JUNE 2020

Our Research Know-How

Scouting / Idea Generation

Each scientist is responsible for scouting new technologies and trends in her or his fjeld of competence.

Reporting / Follow up

Every scientist is responsible for the generation of research documents that are made available internally to build up a broad and comprehensive knowledge.

Knowledge Transfer

Our Sales team organizes events (client visits, conference calls, thematic breakfast presentations) that help investors understand specifjc topics of AtonRâ’s fundamental research.

Weekly meeting

Our Research team gathers and shares the latest fjndings on a weekly basis in

  • rder to assess and identify new trends

and technologies.

Deep Dive

When a topic is judged as interesting and investable by Portfolio Managers, the scientist responsible for that thematic presents a detailed analysis and is questioned and challenged.

Tech compass

Based on the research generated,

  • ur engineers maintain an updated

compass in order to keep the right tech

  • track. Portfolio Managers & Financial

Analysts keep track of the fjnancial and revenue-generating potential.

ATONRÂ AT A GLANCE

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10 JUNE 2020

THEMATIC INVESTING

Thematic Investment Process

  • Study of the value chain
  • Industrial visits &

presentations

  • Meetings with Industry

Experts

  • Academic & scientifjc

conferences

TOP DOWN RESEARCH

Fundamental Research

  • Scientists
  • Portfolio managers

TEAM INVOLVED:

  • Defjnition of the investment

universe

  • Financial analysis and

selection of stocks with highest EPS upside

BOTTOM-UP RESEARCH CAREFUL SCREENING

Stock Selection STEP 2

  • Portfolio Managers
  • Scientists

TEAM INVOLVED:

  • Concentrated bucket

(15–35 stocks)

  • Weightings according to

conviction levels

  • Moderate turnover

Thematic Bucket Construction

SIZING POSITIONS

STEP 3

  • Portfolio Managers

TEAM INVOLVED:

  • Constant validation of

the investment thesis

  • Bull / Bear analysis
  • Monitoring positions and

risk contribution

Risk Monitoring

ENHANCE RISK-ADJUSTED RETURNS

STEP 4

  • Portfolio Managers
  • Risk Managers

TEAM INVOLVED:

STEP 1

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11 JUNE 2020

Step 1 – Fundamental Research

THEMATIC INVESTING

  • The evolving relationship between

business, science and industry is crucial in order to be ahead of the curve .

  • Continuous R&D spending

plays a determinant role on the understanding of new investment themes.

  • Portfolio managers and

scientists work together from start to end.

Discovering how far a business can go requires conviction, curiosity and taking the risk of going too far…

ATONRÂ LAB PORTFOLIO MANAGERS

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12 JUNE 2020

Step 2 – Stock Selection

THEMATIC INVESTING

1) The Investable Universe 2) Identify The Best Stocks

Understand the risks of each theme

  • Favoring companies with high R&D budgets on

scientifjc and industrial research.

  • Identifying revenue and EPS upside thanks to

proprietary fundamental and fjnancial research.

  • Understanding the best risk-adjusted returns of

each company.

Exclusion

  • Exclusion list of Norway’s Government

Pension Fund Global.

Liquidity constraints

  • Minimum of $5 Mn average daily volume per

stock.

  • At least 80% of the portfolio can be sold

within one week.

Market cap constraints

  • > $500 Mn

Targeting companies with at least 20% of their expected revenues/earnings growth derived from the theme.

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13 JUNE 2020

Step 3 – Thematic Bucket Construction

THEMATIC INVESTING

Stock weights within thematic buckets depend on convictions level: Top Conviction 6–10%

  • Max. 10% position in a thematic bucket
  • Min. 2% per position
  • Max. 17% in a thematic bucket
  • Adjusted to <15% if the 17% level is reached

Initial Weights Maximum Weights 15-35 stocks per thematic bucket Good Conviction 2–3% Strong Conviction 3–6%

Companies with the highest valuation upside relative to the investment universe. Companies with signifjcant valuation upside. Companies with important upside but higher risk.

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14 JUNE 2020

Step 4 – Risk Management

Strong growth can only last so long and themes are to be exited before growth normalizes. Bull/bear scenarii are performed to better assess the downside risk. Stop-loss appraisal when a position declines and underperforms the bucket by more than 15%

  • n a weekly

closing basis. Weightings and positions are adjusted when market conditions develop and stock catalysts unfold. Investors are provided with regular research notes and timely reports (either

  • n themes or on

specifjc stocks).

THEMATIC INVESTING

Investors gain access to AtonRâ’s research on the company’s website.

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15 JUNE 2020

Exposure To The Most Promising Themes

THE ATONRÂ FUND

  • Long-only fund
  • UCITS domiciled in Luxembourg
  • Global listed equities
  • Selection of AtonRâ themes
  • 7 themes at inception (min 4, max 10)
  • New themes can be added & themes nearing

maturity will be exited

  • Fully replicates existing themes portfolios
  • Themes equally weighted, rebalanced quarterly
  • Stocks weighting at theme level refmected in the

AtonRâ Fund

15 JUNE 2020

The AtonRâ Fund Theme Allocation Portfolio Management

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20 JUNE 2020 AI & ROBOTICS

AI & Robotics

ANNEXES: THEMATIC PORTFOLIOS DATA

The third step of technological evolution

Thanks to increasing computing power and big data, Artifjcial Intelligence (AI) has been expanding at a fast pace, with notably major advances in the fjelds of natural language processing and computer vision. The development of the Internet of Things and of standard operating systems for objects and devices could give another massive boost to AI applications over coming years. With this, smart cars, smart homes and smart factories could become reality sooner than expected.

INDUSTRIAL APPLICATIONS T EC H V END ORS C ONSUMER A PPLIC AT IONS

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22 JUNE 2020 BIONICS

Bionics

ANNEXES: THEMATIC PORTFOLIOS DATA

Making human enhancement a reality

Innovations in the fjelds of medicine, artifjcial intelligence, robotics and sensors are fjnally giving a new life to medical technologies and are making human enhancement a reality. The investment universe encompasses next-generation prosthetics, medical wearables and devices, surgical and medical robots, exoskeletons, 3D printing, synthetic biology and artifjcial intelligence. All play a major role in the emergence of bionics.

MED IC A L W E A R A BL ES B IONIC S LIMBS SURGERY ROBOT S E XOSK EL E TONS

A I

3 D PRINT ING

A R T IFIC I A L ORG A NS SY NT H E T IC B IOLOGY

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24 JUNE 2020 BIOTECHNOLOGY

Biotechnology

ANNEXES: THEMATIC PORTFOLIOS DATA

New drug technologies for today’s diseases

The investment universe focuses on tomorrow's new generation of drugs that might revolutionize the future of biotechnology. Such technologies include RNA-based drugs, cell and gene therapies, in addition to a new generation of vaccines. Medical innovations will allow for more personalized treatment and better diagnosis. Such innovations are further supported by authorities such as the FDA which encourages the approval of this new generation of drugs by recruiting specialized teams and establishing specifjc guidelines.

C A RD IOVA SCUL A R P ERSON A LIZ ED MED IC INE NEUROLOGY IMMUNOT H ER A P Y R A R E D ISE A SES

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26 JUNE 2020 FINTECH

Fintech

Disruptors and enablers, both winners

The pace of innovation in fjnancial technology (Fintech) has been accelerating lately with notably the emergence of mobile payments. Banks and insurers will have no choice but to invest heavily as Fintech is expected to spark major operating effjciencies through increased automation and is also likely to lift the fjnancial industry's revenue outlook through enhanced customer experience and engagement.

PAY MENT PRO C ESSING A I & BOT S P2P L END ING FIN A NC I A L SOF T WA R E B IOME T RIC S & SECURI T Y BLO C KC H A IN LOYA LT Y & R E WA RDS B2B PAY MENT S MOB IL E PAY MENT S

ANNEXES: THEMATIC PORTFOLIOS DATA

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28 JUNE 2020 MOBILE PAYMENTS

Mobile Payments

Now entering mass adoption phase

While the mobile payment infrastructure is now in place (NFC-enabled phones and POS terminals, various platforms such as Apple Pay), we are about to enter the second phase of growth for the theme, which is the mass adoption of payment solutions by consumers. Increasing marketing and improving ergonomics, security and value-added services (such as rewards, loyalty and couponing) should give a major boost to consumer engagement.

H A RDWA R E V END ORS T EC H GI A NT S PRO C ESSORS & NE T WORKS B IOME T RIC S & SECURI T Y

ANNEXES: THEMATIC PORTFOLIOS DATA

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30 JUNE 2020 SECURITY & SPACE

Security & Space

Enabling and securing progress

Security is in the early stages of its digital and tech transformation thanks to innovations in artifjcial intelligence, robotics and augmented reality. Space exploration could be another major source of upside for private contractors as the US plans missions to the Moon and beyond and as the new NASA Administrator is a proponent of outsourcing some of the NASA’s operations to the private sector. Civil security will be in the spotlight as the Internet of Things opens the way to new cyber attacks and as smart cities become reality, pointing to strong demand for smart devices, inspection and detection systems and cyber security.

SPAC E NE W GENER AT ION T EC HNOLOGI ES SECURI T Y D E V IC ES SM A R T C I T I ES & HOMES B IOME T RIC S & CY B ERSECURI T Y

ANNEXES: THEMATIC PORTFOLIOS DATA

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32 JUNE 2020 SUSTAINABLE FUTURE

Sustainable Future

Building a new world

Sustainable development is defjned as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. Our Sustainable Future theme will capture the growth (estimated above 20% on average) in all industries benefjting from the sustainable development of our planet. We invest in pure players in renewable energies, energy storage, smart transportation, water & wastewater treatment, the digitalization of energy systems and integration of smart technologies.

SOL A R & W IND SM A R T AGRICULT UR E SM A R T GRID SM A R T T R A NSP OR TAT ION ENERGY EFFIC I ENCY SM A R T C I T I ES & BUILD INGS WAT ER & WA S T E WAT ER T R E AT MENT ENERGY S TOR AGE

ANNEXES: THEMATIC PORTFOLIOS DATA

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34 JUNE 2020

Invest Beyond The Ordinary

Explore our investment themes: www.atonra.ch/investment-themes/

BIONICS BIOTECHNOLOGY AI AND ROBOTICS SECURITY AND SPACE SUSTAINABLE FUTURE HEALTHCARE M&A MOBILE PAYMENTS FINTECH