NEW YORK, March 27, 2017 /PRNewswire/ -- The total global
trading volume of depositary receipts (DRs)—negotiable financial
instruments issued by a bank to represent a foreign company's
publicly traded securities—reached US$152.1
billion, and US$2.9 trillion
in traded value in 2016 according to The 2016 Depositary Receipt
Market Review, released today by BNY Mellon, a global leader in
investment management and investment services. The Review also
reports that over US$8 billion was
raised through 37 new DR offerings, and 68 new sponsored DR
programs were created. More than 3,400 sponsored and
unsponsored DR programs existed at year end 2016.
The BNY Mellon ADR Index saw a 3.72% total return for the
year. While that benchmark underperformed the U.S. market, as
measured by the S&P 500—which was up +11.96% as of December 30, 2016—the BNY Mellon Emerging Market
Regional DR Index outperformed, growing by 13.65%.
Sub-indices based on securities of companies from the major
emerging markets of Brazil and
Russia gained 69.05% and 61.02%,
respectively.
At year end, BNY Mellon marked a 57% global market share of all
sponsored DR programs—more than the total market share of all its
competitors combined.
"Depositary receipts' cost, convenience and liquidity value
proposition remains as intact today as ever," said Christopher M. Kearns, CEO of BNY Mellon's
Depositary Receipts business. "DRs are an integral component in
many investment portfolios and this year's Review celebrates DRs
from the point of view of both issuers and investors."
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 release is for informational purposes only. BNY Mellon
provides 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. Depositary Receipts: Not FDIC, State or Federal Agency
Insured; May Lose Value; No Bank, State or Federal Agency
Guarantee. BNY Mellon provides no advice nor recommendations or
endorsement with respect to any company, security or products based
on any index licensed by BNY Mellon, and we make no representation
regarding the advisability of investing in the same.
Contact:
Cheryl Krauss
+1 212 635 8176
cheryl.krauss@bnymellon.com
Frank Pinto
+1 917 309 1065
frank.pinto@bnymellon.com
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SOURCE BNY Mellon