Investment Insights Depositary Receipt Market Review Year End 2016 DOWNLOAD PRINT April 2017 AAA 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. Message from the CEO 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. Sincerely, Christopher Kearns 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. 2016 Year in Review Highlights1,2 152.1B DRs valued at $2.9T traded Over $8.0B raised through 37 DR offerings 68 new sponsored DR programs created 65 new unsponsored DR programs created 3,492 total DR programs in existence READ THE FULL REPORT “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 Market Share of Sponsored DR Programs1 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. 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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. Depositary Receipts: 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. GLOBAL MARKET OPPORTUNITIES Related Visit Our Depositary Receipts Website BNY Mellon Introduces ESG Advisory Services for its Depositary Receipts Clients BNY Mellon CSR Report Contact Us Want to get in touch to find out more about BNY Mellon? CONTACT Want to share with friends in your network? 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