Equity investors are increasingly pursuing global diversification as evidenced by the year-over-year 19% increase in AUM benchmarked to the MSCI ACWI Index series, standing at $3.7 trillion as of December 31, 2017.
Depositary Receipts (DRs) help facilitate international equity investing, with over 74 billion DRs traded in the first half of 2018, valued at more than $2 trillion.
DR Market Liquidity
The growth of the DR universe over the years has given investors access to a broad range of companies. DRs help investors wanting to diversify globally overcome a number of challenges faced when investing outside their home markets, such as settlement, currency conversion, unfamiliar market practices, and investment policies that may not allow them to invest otherwise.
Demand for DRs increased in absolute terms in the first half of 2018. In the first half of 2017, 4,970 institutions held over $863 billion in DRs; in the first half of 2018 that number grew to 5,363 institutions holding over $1.1 trillion in DRs, a 27.76% increase year-over-year.
Growth in Investor DR Holdings
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