BANK OF NEW YORK MELLON CORPORATION (THE) 
By News Release
Contact: | Joseph F. Ailinger Jr | Dori Flanagan |
+1 617-722-7571 | +1 212-815-2291 | |
joe.ailinger@bnymellon.com | dori.flanagan@bnymellon.com |
Strong country performance in Europe, Australia, China drive DR index gains, according to BNY Mellon's
2012 DR market update; other milestones set in volatile year
NEW YORK, January 30, 2013 - The BNY Mellon Classic ADR Index posted an 18% return last year, beating the 16% gain by the Standard & Poor's 500 Index of U.S. shares, and reversing a 2011 loss even as overall depositary receipt trading shrank, according to BNY Mellon's year-end report on the DR market.(1)
"The outperformance of the Classic ADR Index is significant, given that overall DR trading value dropped in 2012 and U.S. stocks performed well during a year of political wrangling," said Christopher M. Kearns, deputy CEO of BNY Mellon's Depositary Receipts business. "International portfolio diversification
through DRs has offered a viable option to many investors, even as geopolitics led to periods of unsettled markets and made companies cautious about committing capital."
As the only real-time index to track all ADRs, New York shares and global registered shares traded on the NYSE, NYSE MKT, NASDAQ and over-the-counter, the BNY Mellon Classic ADR Index has become a widely followed international benchmark. Last year, the index gained 18%, reversing a 13% loss in 2011.
More broadly, a total 157 billion DRs were traded on the world's markets and exchanges, 10% less than
2011, but higher than the previous two years, while the value of DRs traded shrank 26% to $2.79 trillion.
The BNY Mellon Classic ADR Index returns for Europe were up more than 20% last year. Overall, the best-performing country indices were those for Germany, which gained 33%, Australia, which gained more than 25%, followed by China with a 25% rise, France returning 24%, and Switzerland with 22%.
According to the year-end report, Oil & Gas sector issuers led all industries in terms of volume with 27 billion DRs traded, 44% more than 2011. In contrast, trading in the Semiconductor and Pharmaceutical sectors were down the most, 41% and 27%, respectively. In terms of trading value, Beverage sector companies outperformed all others with an 18% increase to $80 billion, while the Oil & Gas industry saw a slight increase of slightly more than 1% to $575 billion.
According to the Classic ADR Index, the two sectors with the largest percentage returns last year were Financials and Consumer Goods, up 35% and 24%, respectively. The two lowest-performing sectors were Telecommunications and Oil & Gas, gaining less than 3% and less than 1%, respectively.
While 2012 was characterized by a mixture of volatility, depressed equity prices and low interest rates, China's GDP rebounded in the fourth quarter and BNY Mellon's forecast is for a slightly faster growth rate globally in 2013, said Kearns.(2)
"In this environment companies increasingly look beyond domestic markets and traditional financing centers for funding, and they have continued to tap international capital markets in a considerable way," Kearns added.
There were 31 capital-raising programs in 2012, including Russia's Sberbank, one of the largest DR offerings ever, as well as sizable and innovative programs for Russia's MegaFon and Brazil's BTG Pactual.
"Our recent investor relations survey shows that half of large cap companies from developed markets that are considering additional listings are interested in doing so in emerging markets," he said.
