Dear Clients and Friends,
The strong performance of many markets in 2014, including a 12% gain for the S&P 500, a 19.8% gain on the Shanghai SE Composite, and a 31.3% return on the CNX Nifty conceals a volatile year.¹ Contributing factors such as investor anticipation of the end of the U.S. Federal Reserve’s quantitative easing, combined with macro-economic weakness and geopolitical instability, meant that many markets touched year-lows as recently as October.
Despite this imperfect backdrop, the Depositary Receipt (DR) market strengthened in 2014:
Going into 2015, the outlook is positive, both in terms of demand and supply. BNY Mellon recently interviewed securities analysts and portfolio managers at major U.S. and European buy-side institutions, and overall, survey participants kept a positive outlook on investment in the equity markets for 2015.4
BNY Mellon plays a leadership role in bringing together investors and issuers and by working with regulators to improve market efficiency and accessibility. We look forward to using our deep knowledge and proven expertise to help issuers and their investors achieve their DR goals in 2015.
Christopher Kearns | READ BIO
Chief Executive Officer, Depositary Receipts
2014 Depositary Receipt Highlights
Depositary Receipts are playing an increasingly important role in global financial markets, allowing companies and investors around the globe to connect seamlessly across borders.
BNY Mellon recently surveyed securities analysts and portfolio managers, of large buy-side institutions, for their outlook on global equity markets. Below are some of the key findings.
1 Bloomberg, as of December 31, 2014.
2 BNY Mellon and other depositary websites.
3 IPREO, Year-on-Year, Q313 as compared to Q314.
4 Survey by Rivel, January 2015, described in more detail on page 20. For further information, please visit http://www.adrbnymellon.com
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Dec. 31, 2014, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.7 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.
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Depositary Receipts: NOT FDIC, STATE OR FEDERAL AGENCY INSURED MAY LOSE VALUE NO BANK,