BNY Mellon's 2016 Depositary Receipt Market Review finds strong price performance growth in emerging markets, led by Brazil and Russia, despite global economic uncertainty and volatility.
Dear Clients and Friends,
The Depositary Receipt team at BNY Mellon took pride in helping our clients manage the global uncertainty that defined 2016. Low economic growth, low or negative interest rates, political upheaval and rapid regulatory and technological change were only some of the challenges we faced during the year. Despite the turmoil, the DR industry enjoyed a solid year, proving once again that DRs are an important product for the global financial markets. At BNY Mellon, we established 32 new sponsored DR programs during the year1 and are proud to work with several leading companies including BMW, Banco Santander, Novatek and Credit Suisse, which are profiled starting on page 4.
Our mission at BNY Mellon is simple: to improve lives through investing and help our clients reach their full potential. In Depositary Receipts, we do this by facilitating the investment process and helping issuers raise capital, which can foster economic growth, job creation and improve living standards all over the world. We highlight, starting on page 10, three issuers that we helped access the markets or raise the capital that allows them to make a difference in their communities.
We know investors are fans of DRs for reasons including cost, convenience and liquidity. This year we are taking this opportunity to profile three leading institutional investors, Lazard Asset Management, Dimensional Fund Advisors and Cambiar Investors. They all say that DRs are an integral part of their investment practice, and they share their views of DRs starting on page 14.
Another bright spot was the growth of DR indices in emerging markets such as Brazil and Russia. As shown on the heat map on page 21 for the BNY Mellon Classic ADR IndexSM, these country indices increased significantly during the year, with Brazil up +69.05% and Russia up +61.02%.
BNY Mellon is determined to be the highest value provider of investment services globally and is the proud leader of the DR industry, with a 57% global market share of sponsored programs and facilities covering 91% of established unsponsored depositary facilities.
In 2017 we have several new initiatives on tap. We are particularly focused on environmental, social and governance issues, and investor relations best practices to help our clients navigate the increasingly complex environment. I look forward to engaging with you soon.
Chief Executive Officer, Depositary Receipts
Depositary Receipts allow companies and investors around the globe to connect seamlessly across borders, playing an increasingly important role in global ﬁnancial markets.
“Despite the turmoil, the DR industry enjoyed a solid year, proving once again that DRs are an important product for the global financial markets.”Christopher Kearns, CEO, BNY Mellon Depositary Receipts
1 BNY Mellon and other depositary bank websites, as of December 31, 2016.
2 Bloomberg (accessed January 27, 2017).
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 December 31, 2016, BNY Mellon had $29.9 trillion in assets under custody and/or administration, and $1.6 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. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
This document, which may be considered advertising, is for general information and reference purposes only and is not intended to provide legal, tax, accounting, investment, financial or other professional advice on any matter, and is not to be used as such. BNY Mellon does not warrant or guarantee the accuracy or completeness of, nor undertake to update or amend the information or data contained herein. We expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon any of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.
This document is not intended for distribution to, or use by, any person or entity in any jurisdiction in which such distribution or use would be contrary to local law or regulation. Similarly, this brochure may not be distributed or used for the purpose of offers or solicitations in any jurisdiction or in any circumstances in which such offers or solicitations are unlawful or not authorized, or where there would be, by virtue of such distribution, new or additional registration requirements. Persons into whose possession this document comes are required to inform themselves about and to observe any restrictions that apply to the distribution of this document in their jurisdiction. The information contained in this document is for use by wholesale clients only and is not to be relied upon by retail clients. If distributed in the U.K. or EMEA, this document may be a financial promotion and is for distribution only to persons to whom it may be communicated without breach of applicable law.
The Bank of New York Mellon, DIFC Branch (the “Authorised Firm”) is communicating these materials on behalf of The Bank of New York Mellon. The Bank of New York Mellon is a wholly owned subsidiary of The Bank of New York Mellon Corporation This material is intended for Professional Clients only and no other person should act upon it. The Authorised Firm is regulated by the Dubai Financial Services Authority.
NOT FDIC, STATE OR FEDERAL AGENCY INSURED
MAY LOSE VALUE
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE
Trademarks and logos belong to their respective owners.
©2017 The Bank of New York Mellon Corporation. All rights reserved.