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).